18.
Commitments and Contingencies Asserted and Unasserted Claims  Various claims and lawsuits are pending against us and certain of our subsidiaries.
We cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations, financial condition, or liquidity.
To the extent possible, we have recorded a liability where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated.
We do not expect that any known lawsuits, claims, environmental costs, commitments, contingent liabilities, or guarantees will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters.
Personal Injury  The cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year.
We use an actuarial analysis to measure the expense and liability, including unasserted claims.
The Federal Employers Liability Act (FELA) governs compensation for work-related accidents.
Under FELA, damages are assessed based on a finding of fault through litigation or out-of-court settlements.
We offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work.
Our personal injury liability is not discounted to present value due to the uncertainty surrounding the timing of future payments.
Approximately 94% of the recorded liability is related to asserted claims and approximately 6% is related to unasserted claims at December 31, 2016.
Because of the uncertainty surrounding the ultimate outcome of personal injury claims, it is reasonably possible that future costs to settle these claims may range from approximately $290 million to $317 million.
We record an accrual at the low end of the range as no amount of loss within the range is more probable than any other.
Estimates can vary over time due to evolving trends in litigation.


| For the Years Ended December 31, 2014, 2013 and 2012 | Business Banking | 2014 | Net interest income(a) | Noninterest income | 422,726 | Provision for credit losses | Amortization of core deposit and other intangible assets | Depreciation and other amortization | Other noninterest expense | Income (loss) before taxes | Income tax expense (benefit) | Net income (loss) | Average total assets (in millions) | Capital expenditures (in millions) |


Operating earnings in 2008 decreased by $1,880 million compared with 2007.
Commercial Airplanes earnings decreased by $2,398 million compared with the same period in 2007, primarily due to fewer new airplane deliveries resulting from the strike, increased program infrastructure costs related to the strike and revised schedules on 787 and 747-8, and a charge taken on the 747-8 program.
Commercial Airplanes’ research and development expense decreased by $124 million to $2,838 million compared with the same period in 2007, primarily due to lower spending on 787 partially offset by higher spending on 747-8 and lower supplier development cost sharing payments.
IDS earnings decreased by $208 million compared with 2007 primarily due to lower earnings in the BMA segment resulting from a $248 million charge taken on the Airborne Early Warning and Control (AEW&C).
BCC operating earnings decreased $72 million reflecting lower revenues and a provision for losses partially offset by lower interest expense.
Unallocated items and eliminations in 2008 improved by $774 million compared with 2007, which is further explained in the table below.


(4) Excludes $12 million of unfunded commitments related to an investment in a limited partnership due to our inability to reasonably estimate the period(s) when the limited partnership will request funding.


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Union Pacific Corporation and Subsidiary Companies For purposes of this report, unless the context otherwise requires, all references herein to the Corporation, UPC, we, us, and our mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which will be separately referred to herein as UPRR or the Railroad.1.
Nature of Operations and Significant Accounting Policies Operations and Segmentation  We are a Class I railroad that operates in the United States.
We have 32,012 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways and providing several corridors to key Mexican gateways.
We serve the western twothirds of the country and maintain coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico.
Export and import traffic is moved through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders.
The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment.
Although revenues are analyzed by commodity group, we analyze the net financial results of the Railroad as one segment due to the integrated nature of our rail network.
The following table provides revenue by commodity group:


| 2012 $1,807,885 | 2013 | 2014 | 2015 | 2016 | Thereafter |


| 2016 $2,266 | 2017 | 2018 | 2019 | 2020 | 2021 and thereafter | Total |


| As of and for the Year Ended December 31, 2016(Millions of Dollars) Operatingrevenues Inter-segment revenues Depreciationandamortization Operatingincome Other Income (deductions) Interestcharges Incometaxes onoperatingincome (a) Totalassets Capitalexpenditures | CECONY | Electric | Gas | Steam | Consolidation adjustments | Total CECONY | O&R | Electric | Gas | Other | Total O&R | Clean Energy Businesses | Con Edison Transmission | Other (b) | Total Con Edison |


Competition All of our apartment communities are located in areas that include other apartment communities.
Occupancy and rental rates are affected by the number of competitive apartment communities in a particular area.
The owners of competing apartment communities may have greater resources than us, and the managers of these apartment communities may have more experience than our management.
Moreover, single-family rental housing, manufactured housing, condominiums and the new and existing home markets provide housing alternatives to potential residents of apartment communities.
Competition for new residents is generally intense across all of our markets.
Some competing communities offer features that our communities do not have.
Competing communities can use concessions or lower rents to obtain temporary competitive advantages.
Also, some competing communities are larger or newer than our communities.
The competitive position of each community is different depending upon many factors including sub-market supply and demand.
In addition, other real estate investors compete with us to acquire existing properties and to develop new properties.
These competitors include insurance companies, pension and investment funds, public and private real estate companies, investment companies and other public and private apartment REITs, some of which may have greater resources, or lower capital costs, than we do.


| Year Ended December 31, | 2018 | Statement of Income Data (a): | Net Sales | Net Income | Net income per common share: | — basic | — diluted | Weighted average common shares outstanding: | — basic | — diluted | Cash dividends declared per common share | Balance Sheet Data (a): | Total assets | Total debt obligations | Stockholders' equity |


| Year Ended December 31, | 2014 | % of | $Revenues | ($ in thousands) | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses |


| In millions of dollars 2010 2009 2008 | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Total operating expenses | Provisions for loan losses and for benefits and claims | (Loss) from continuing operations before taxes | Benefits for income taxes | (Loss) from continuing operations | Income (loss) from discontinued operations, net of taxes | Net income (loss) before attribution of noncontrolling interests | Net (loss) attributable to noncontrolling interests | Net income (loss) |


| (In thousands) 2017 2016 2015 | Revenues | Cost of goods sold | Selling, general and administrative expenses | Impairment of goodwill and intangible assets | Interest income (expense), net | Other income (expense), net | Income (loss) from discontinued operations before income taxes | Loss on the sale of discontinued operations, before income taxes | Total income (loss) from discontinued operations before income taxes | Income tax (expense) benefit(a) | Income (loss) from discontinued operations, net of tax |


| 2019 $124,176 | 2020 | 2021 | 2022 | 2023 | 2024 and thereafter | Total |


| Liability as of January 1, 2004 2004 Expense 2004 Cash Payments Liability as of December 31, 2004 2005 Expense 2005 Cash Payments Liability as of December 31, 2005 2006 Expense 2006 Cash Payments Liability as of December 31, 2006 | Employee separations | Lease terminations and other facility closing costs | Total |


Critical Accounting Estimates Our audited Consolidated Financial Statements, which are included in this report, are prepared in accordance with GAAP.
The preparation of financial statements in conformity with GAAP requires us to establish accounting policies and make estimates that affect amounts reported in our audited Consolidated Financial Statements.
An accounting estimate requires assumptions and judgments about uncertain matters that could have a material effect on our audited Consolidated Financial Statements.
Estimates are made using facts and circumstances known at a point in time.
Changes in those facts and circumstances could produce results substantially different from those estimates.
The most significant accounting policies and estimates and their related application are discussed below.
See Note 1 Significant Accounting Policies to our audited Consolidated Financial Statements in Part II, Item 8  Financial Statements and Supplementary Data, included in this report, for further discussion of our significant accounting policies.


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) Our overall gross margin percentage decreased to 59.8% in 2013 from 62.1% in 2012.
The decrease in the gross margin percentage was primarily due to the gross margin percentage decrease in PCCG.
We derived most of our overall gross margin dollars in 2013 and 2012 from the sale of platforms in the PCCG and DCG operating segments.
Our net revenue for 2012, which included 52 weeks, decreased by $658 million, or 1%, compared to 2011, which included 53 weeks.
The PCCG and DCG platform unit sales decreased 1% while average selling prices were unchanged.
Additionally, lower netbook platform unit sales and Multi-Comm average selling prices, primarily discrete modems, contributed to the decrease.
These decreases were partially offset by our McAfee operating segment, which we acquired in the Q1 2011.
McAfee contributed $469 million of additional revenue in 2012 compared to 2011.
Our overall gross margin dollars for 2012 decreased by $606 million, or 2%, compared to 2011.
The decrease was due in large part to $494 million of excess capacity charges, as well as lower revenue from the PCCG and DCG platform.
To a lesser extent, approximately $390 million of higher unit costs on the PCCG and DCG platform as well as lower netbook and Multi-Comm revenue contributed to the decrease.
The decrease was partially offset by $643 million of lower factory start-up costs as we transition from our 22nm process technology to R&D of our next-generation 14nm process technology, as well as $422 million of charges recorded in 2011 to repair and replace materials and systems impacted by a design issue related to our Intel?6 Series Express Chipset family.
The decrease was also partially offset by the two additional months of results from our acquisition of McAfee, which occurred on February 28, 2011, contributing approximately $334 million of additional gross margin dollars in 2012 compared to 2011.
The amortization of acquisition-related intangibles resulted in a $557 million reduction to our overall gross margin dollars in 2012, compared to $482 million in 2011, primarily due to acquisitions completed in Q1 2011.
Our overall gross margin percentage in 2012 was flat from 2011 as higher excess capacity charges and higher unit costs on the PCCG and DCG platform were offset by lower factory start-up costs and no impact in 2012 for a design issue related to our Intel 6 Series Express Chipset family.
We derived a substantial majority of our overall gross margin dollars in 2012 and 2011 from the sale of platforms in the PCCG and DCG operating segments.
PC Client Group The revenue and operating income for the PCCG operating segment for each period were as follows:


FORWARD-LOOKING STATEMENTS Certain statements in this Annual Report are forward-looking in nature as defined in the Private Securities Litigation Reform Act of 1995.
These statements and other written and oral forward-looking statements made by the Company from time to time may relate to, among other things, such matters as planned and expected capacity increases and utilization; anticipated capital spending; expected depreciation and amortization; environmental matters; legal proceedings; exposure to, and effects of hedging of, raw material and energy costs and foreign currencies; global and regional economic, political, and business conditions; competition; growth opportunities; supply and demand, volume, price, cost, margin, and sales; earnings, cash flow, dividends, and other expected financial conditions; expectations, strategies, and plans for individual assets and products, businesses, segments, and divisions as well as for the whole of Eastman Chemical Company; cash requirements and uses of available cash; financing plans; pension expenses and funding; credit ratings; anticipated restructuring, divestiture, and consolidation activities; cost reduction and control efforts and targets; integration of acquired businesses; development, production, commercialization, and acceptance of new products, services and technologies and related costs; asset, business and product portfolio changes; and expected tax rates and net interest costs.
These plans and expectations are based upon certain underlying assumptions, including those mentioned with the specific statements.
Such assumptions are in turn based upon internal estimates and analyses of current market conditions and trends, management plans and strategies, economic conditions, and other factors.
These plans and expectations and the assumptions underlying them are necessarily subject to risks and uncertainties inherent in projecting future conditions and results.
Actual results could differ materially from expectations expressed in the forwardlooking statements if one or more of the underlying assumptions and expectations proves to be inaccurate or is unrealized.
Certain important factors that could cause actual results to differ materially from those in the forward-looking statements are included with such forward-looking statements and on pages 62 through 63, Managements Discussion and Analysis of Financial Condition and Results of Operations  Forward-Looking Statements and Risk Factors.


| Year Ended March 2019 Three MonthsEnded March(Transition Period) 2018 Year Ended December | (In thousands) | Balance, beginning of year | Accrual for products sold during the year | Repair or replacement costs incurred | Currency translation | Balance, end of year | Less current portion (Note 12) | Long-term portion | Year Ended March 2019 | (In thousands) | Service cost — benefits earned during the period | Interest cost on projected benefit obligations | Expected return on plan assets | Settlement charges | Curtailments | Amortization of deferred amounts: | Net deferred actuarial losses | Deferred prior service costs | Total pension expense | Weighted average actuarial assumptions used to determine pension expense: | Discount rate in effect for determining service cost | Discount rate in effect for determining interest cost | Expected long-term return on plan assets | Rate of compensation increase |


| Contractual Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years Other Footnote Reference-4 | Debt Obligations-1 | Interest Payments on Long-Term Debt-2 | Capital Lease Obligations | Operating Lease Obligations | Electricity Obligations | Fuel Obligations | Other Purchase Obligations | Other Long-Term Liabilities Reflected on AES' Consolidated Balance Sheet under GAAP-3 | Total | 2016 | Current: | Federal | State | Foreign | Deferred: | Federal | State | Foreign | Income tax provision |


| December 31, Average Balance Year Ended December 31, | (In millions) | Client deposits-1 |


| Fair Value Measurements Using Fair Value Measurements Using | Quoted Prices   In Active   Markets for   Identical Assets   (Level 1) | December 31, 2009 | Assets | Investments | U.S. government and agency securities | Corporate notes and bonds | Municipal securities | Mortgage-backed securities-1 | Commercial paper | Asset-backed securities-1 | Foreign government bonds | Equity securities | Other debt securities | 39.4 | Other assets | Securities held for employee compensation | Other assets-2 | 107.7 | Derivative assets-3 | Purchased currency options | Forward exchange contracts | Interest rate swaps | - | Total assets | Liabilities | Derivative liabilities-3 | Written currency options | Forward exchange contracts | Total liabilities |


| December 31, | 2007 | (in millions) | Fixed maturity securities, available-for-sale | Fixed maturity securities, trading | Equity securities, trading | Cash and other assets | Total assets pledged as collateral | Long-term debt |


Bristol-Myers Squibb 10 In the U. S. , we generally determine our months on hand estimates using inventory levels of product on hand and the amount of outmovement provided by our three largest wholesalers, which account for approximately 95% of total gross sales of U. S.  products.
Factors that may influence our estimates include generic competition, seasonality of products, wholesaler purchases in light of increases in wholesaler list prices, new product launches, new warehouse openings by wholesalers and new customer stockings by wholesalers.
In addition, these estimates are calculated using third-party data, which may be impacted by their recordkeeping processes.
For our businesses outside of the U. S. , we have significantly more direct customers.
Limited information on direct customer product level inventory and corresponding out-movement information and the reliability of third-party demand information, where available, varies widely.
When direct customer product level inventory, ultimate patient/consumer demand or out-movement data does not exist or is otherwise not available, we have developed a variety of other methodologies to estimate such data, including using such factors as historical sales made to direct customers and third-party market research data related to prescription trends and end-user demand.
Accordingly, we rely on a variety of methods to estimate direct customer product level inventory and to calculate months on hand.
Factors that may affect our estimates include generic competition, seasonality of products, direct customer purchases in light of price increases, new product launches, new warehouse openings by direct customers, new customer stockings by direct customers and expected direct customer purchases for governmental bidding situations.
As such, all of the information required to estimate months on hand in the direct customer distribution channel for non-U.
S.  business for the year ended December 31, 2015 is not available prior to the filing of this annual report on Form 10-K.  We will disclose any product with levels of inventory in excess of one month on hand or expected demand, subject to a de minimis exception, in the next quarterly report on Form 10-Q.


(1) The definition of nonperforming does not include consumer credit card and consumer non-real estate loans and leases.
These loans are charged off no later than the end of the month in which the account becomes 180 days past due.
(2) Nonperforming held consumer loans and leases as a percentage of outstanding consumer loans and leases were 1.68 percent (1.81 percent excluding the SOP 03-3 portfolio) and 0.62 percent at December 31, 2008 and 2007.
(3) Balances do not include loans accounted for in accordance with SOP 03-3 even though the customer may be contractually past due.
Loans accounted for in accordance with SOP 03-3 were written down to fair value upon acquisition and accrete interest income over the remaining life of the loan.
(4) Accruing held consumer loans and leases past due 90 days or more as a percentage of outstanding consumer loans and leases were 0.73 percent (0.79 percent excluding the SOP 03-3 portfolio) and 0.57 percent at December 31, 2008 and 2007.
(5) Represents acquired loans from Countrywide that were considered impaired and written down to fair value at the acquisition date in accordance with SOP 03-3.
These amounts are included in the Outstandings column in this table.
(6) Discontinued real estate includes pay option loans and subprime loans obtained in connection with the acquisition of Countrywide.
The Corporation no longer originates these products.
(7) Outstandings include foreign consumer loans of $1.8 billion and $3.4 billion at December 31, 2008 and 2007.
(8) Outstandings include consumer finance loans of $2.6 billion and $3.0 billion, and other foreign consumer loans of $618 million and $829 million at and December 31, 2008 and 2007.  n/a = not applicable


Grand Gulf Lease Obligations In December 1988, in two separate but substantially identical transactions, System Energy sold and leased back undivided ownership interests in Grand Gulf for the aggregate sum of $500 million.
The interests represent approximately 11.5% of Grand Gulf.
The leases expire in 2015.
Under certain circumstances, System Entergy may repurchase the leased interests prior to the end of the term of the leases.
At the end of the lease terms, System Energy has the option to repurchase the leased interests in Grand Gulf at fair market value or to renew the leases for either fair market value or, under certain conditions, a fixed rate.
In May 2004, System Energy caused the Grand Gulf lessors to refinance the outstanding bonds that they had issued to finance the purchase of their undivided interest in Grand Gulf.
The refinancing is at a lower interest rate, and System Energy's lease payments have been reduced to reflect the lower interest costs.
System Energy is required to report the sale-leaseback as a financing transaction in its financial statements.
For financial reporting purposes, System Energy expenses the interest portion of the lease obligation and the plant depreciation.
However, operating revenues include the recovery of the lease payments because the transactions are accounted for as a sale and leaseback for ratemaking purposes.
Consistent with a recommendation contained in a FERC audit report, System Energy initially recorded as a net regulatory asset the difference between the recovery of the lease payments and the amounts expensed for interest and depreciation and continues to record this difference as a regulatory asset or liability on an ongoing basis, resulting in a zero net balance for the regulatory asset at the end of the lease term.
The amount of this net regulatory asset was $19.2 million and $36.6 million as of December 31, 2008 and 2007, respectively.


| % Change | System Sales, Ex FX | KFC Division | Pizza Hut Division | Taco Bell Division | Worldwide |


Earnings from continuing operations for 2014 include a pretax gain of $211.4 million (net of $16.5 million of disposition related charges) referable to the sale of our cement and concrete businesses in the Florida area as described in Note 19 “Acquisitions and Divestitures” in Item 8 “Financial Statements and Supplementary Data.
” We deferred income taxes on approximately $145.0 million of this gain through like-kind exchange transactions.2 Discontinued operations include the results from operations attributable to our former Chemicals business.


For the year ended December 31, 2005, we realized net losses of $1 million on sales of available-for-sale securities.
Unrealized gains of $1 million were included in other comprehensive income at December 31, 2004, net of deferred taxes of less than $1 million, related to these sales.
For the year ended December 31, 2004, we realized net gains of $26 million.
Unrealized gains of $11 million were included in other comprehensive income at December 31, 2003, net of deferred taxes of $7 million, related to these sales.
For the year ended December 31, 2003, we realized net gains of $23 million.
Unrealized gains of $22 million were included in other comprehensive income at December 31, 2002, net of deferred taxes of $15 million, related to these sales.
Shareholders Rights Plan: In 1988, we declared a dividend of one preferred share purchase right for each outstanding share of common stock.
In 1998, the Rights Agreement was amended and restated.
Accordingly, a right may be exercised, under certain conditions, to purchase one eight-hundredths share of a series of participating preferred stock at an exercise price of $132.50, subject to adjustment.
The rights become exercisable if a party acquires or obtains the right to acquire 10% or more of our common stock or after commencement or public announcement of an offer for 10% or more of our common stock.
When exercisable, under certain conditions, each right entitles the holder thereof to purchase shares of common stock, of either State Street or of the acquirer, having a market value of two times the then-current exercise price of that right.
The rights expire in September 2008, and may be redeemed at a price of $.00125 per right, subject to adjustment, at any time prior to expiration or the acquisition of 10% of our common stock.
Under certain circumstances, the rights may be redeemed after they become exercisable and may be subject to automatic redemption.


| (Dollars in millions) 2012 2011 2010 | Price risk on mortgage banking production income-1, 2 | Market-related risk on mortgage banking servicing income-1 | Credit risk on loans-3 | Interest rate and foreign currency risk on long-term debt and other foreign exchange transactions-4 | Price risk on restricted stock awards-5 | Other | Total |


| EIN / PensionPlan PensionProtection ActZone Status FIP/RP StatusPending/ (in millions)UPS Contributions Surcharge | Pension Fund | Alaska Teamster-Employer Pension Plan | Automotive Industries Pension Plan | Central Pennsylvania Teamsters Defined Benefit Plan | Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund | Hagerstown Motor Carriers and Teamsters Pension Fund | I.A.M. National Pension Fund / National Pension Plan | International Brotherhood of Teamsters Union Local No. 710 Pension Fund | Local 705, International Brotherhood of Teamsters Pension Plan | Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan | Milwaukee Drivers Pension Trust Fund | New England Teamsters & Trucking Industry Pension Fund | New York State Teamsters Conference Pension and Retirement Fund | Teamster Pension Fund of Philadelphia and Vicinity | Teamsters Joint Council No. 83 of Virginia Pension Fund | Teamsters Local 639—Employers Pension Trust | Teamsters Negotiated Pension Plan | Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan | United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan | Western Conference of Teamsters Pension Plan | Western Pennsylvania Teamsters and Employers Pension Fund | All Other Multiemployer Pension Plans | Total Contributions |


CF INDUSTRIES HOLDINGS, INC.  127 19.
Stock-Based Compensation 2014 Equity and Incentive Plan On May 14, 2014, our shareholders approved the CF Industries Holdings, Inc.  2014 Equity and Incentive Plan (the Plan) which replaced the CF Industries Holdings, Inc.  2009 Equity and Incentive Plan.
Under the Plan, we may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (payable in cash or stock) and other stock-based awards to our officers, employees, consultants and independent contractors (including non-employee directors).
The purpose of the Plan is to provide an incentive for our employees, officers, consultants and non-employee directors that is aligned with the interests of our stockholders.
Five-for-One Stock Split On June 17, 2015, stockholders of record as of the close of business on June 1, 2015 (Record Date) received four additional shares of common stock for each share of common stock held on the Record Date in the form of a stock dividend (five-for-one stock split).
Share and per share amounts have been retroactively restated to reflect the five-for-one stock split.
Shares reserved under the Company's equity and incentive plans were adjusted to reflect the five-for-one stock split.
Share Reserve and Individual Award Limits The maximum number of shares reserved for the grant of awards under the Plan is the sum of (i) 13.9 million and (ii) the number of shares subject to outstanding awards under our predecessor plans to the extent such awards terminate or expire without delivery of shares.
For purposes of determining the number of shares of stock available for grant under the Plan, each option or stock appreciation right is counted against the reserve as one share.
Each share of stock granted, other than an option or a stock appreciation right, is counted against the reserve as 1.61 shares.
If any outstanding award expires or is settled in cash, any unissued shares subject to the award are again available for grant under the Plan.
Shares tendered in payment of the exercise price of an option and shares withheld by the Company or otherwise received by the Company to satisfy tax withholding obligations are not available for future grant under the Plan.
As of December 31, 2015, we had 13.1 million shares available for future awards under the Plan.
The Plan provides that no more than 5.0 million underlying shares may be granted to a participant in any one calendar year.
Stock Options Under the Plan and our predecessor plans, we granted to plan participants nonqualified stock options to purchase shares of our common stock.
The exercise price of these options is equal to the market price of our common stock on the date of grant.
The contractual life of each option is ten years and generally one-third of the options vest on each of the first three anniversaries of the date of grant.
The fair value of each stock option award is estimated using the Black-Scholes option valuation model.
Key assumptions used and resulting grant date fair values are shown in the following table.


Notes to consolidated financial statements 170 JPMorgan Chase & Co. /2016 Annual Report Determination of instrument-specific credit risk for items for which a fair value election was made The following describes how the gains and losses that are attributable to changes in instrument-specific credit risk, were determined.  ?
Loans and lending-related commitments: For floatingrate instruments, all changes in value are attributed to instrument-specific credit risk.
For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related.
Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries.  ?
Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in the Firms credit spread.  ?
Resale and repurchase agreements, securities borrowed agreements and securities lending agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements.


| 2018 2017 2016 | Year ended December 31, (in millions) | Unrealized gains/(losses) on investment securities: | Net unrealized gains/(losses) arising during the period | Reclassification adjustment for realized (gains)/losses included in net income(a) | Net change | Translation adjustments(b): | Translation | Hedges | Net change | Fair value hedges, net change(c): | Cash flow hedges: | Net unrealized gains/(losses) arising during the period | Reclassification adjustment for realized (gains)/losses included in net income(d) | Net change | Defined benefit pension and OPEB plans: | Prior service credit/(cost) arising during the period | Net gain/(loss) arising during the period | Reclassification adjustments included in net income(e): | Amortization of net loss | Amortization of prior service cost/(credit) | Curtailment (gain)/loss | Settlement (gain)/loss | Foreign exchange and other | Net change | DVA on fair value option elected liabilities, net change: | Total other comprehensive income/(loss) |


| Payments Due by Period | ($ in millions) | Deposits-1(2) | Securitized financings-3 | Bank term loan-4 | Senior unsecured notes-5 | Operating leases | Total contractual obligations-6(7) |


(a) Reflects a $1,243 million increase in net plant and a $229 million increase in regulatory assets for deferred storm costs.
(b) Reflects a $2,797 million decrease in regulatory assets for unrecognized pension and other postretirement costs offset by an increase of $1,405 million, $280 million, $215 million and $199 million in net plant, cash, regulatory assets for environmental remediation costs and regulatory assets for future income tax, respectively.
(c) Reflects a $1,999 million increase in regulatory assets for unrecognized pension and other postretirement costs and a $1,440 million increase in net plant.
See Notes B, E and F to the financial statements in Item 8.
(d) Reflects a $1,725 million increase in net plant and a $912 million decrease in regulatory assets for unrecognized pension and other postretirement costs.
See Notes B, E and F to the financial statements in Item 8.
(e) Reflects $67 million, $62 million, $63 million and $76 million in 2011, 2012, 2013 and 2014, respectively, related to the adoption of ASU No.2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.
” See Note C to the financial statements in Item 8.
(f) Reflects $157 million, $193 million, $100 million and $118 million in 2011, 2012, 2013 and 2014, respectively, related to the adoption of ASU No.2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.
” See Note L to the financial statements in Item 8.


| For the Years Ended December 31, | (Millions of Dollars) | Operating revenues | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Gas operating income |


| 2009 2008 2007 | Year ended December 31, (in millions) | Unrealized gains/(losses) on AFS securities: | Net unrealized gains/(losses) arisingduring the period | Reclassification adjustment for realized(gains)/losses included in net income | Net change | Translation adjustments: | Translation | Hedges | Net change | Cash flow hedges: | Net unrealized gains/(losses) arisingduring the period | Reclassification adjustment for realized(gains)/lossesincluded in net income | Net change | Net loss and prior service cost/(credit) ofdefined benefit pension and OPEB plans: | Net gains/(losses) and prior servicecredits arising during the period | Reclassification adjustment for net lossand priorservice credits included in net income | Net change | Total Other comprehensive income/(loss) |


| U.S. $292 | EMEA | Inter-Continental | Japan | $563 |


| Year ended December 31,(in millions) 2015 2014 2013 | Legal expense | Federal Deposit Insurance Corporation-related (“FDIC”) expense | December 31, 2017 | (in millions) | Risk exposure | Interest rate | Credit | Foreign exchange | Equity | Commodity | Total structured notes |


| Exercisable Unexercisable Total | Shares% | In-the-money | Out-of-the-money | Total |


In general, the Company’s business is not seasonal.
For information on U. S.  pharmaceuticals prescriber demand, reference is made to the table within Business Segments under the Pharmaceuticals section below, which sets forth a comparison of changes in net sales to the estimated total prescription growth (for both retail and mail order customers) for certain of the Company’s pharmaceutical products.
The Company operates in three reportable segments—Pharmaceuticals, Nutritionals and Other Health Care.
In May 2005, the Company completed the sale of OTN, which was previously presented as a separate segment.
As such, the results of operations for OTN are presented as part of the Company’s results from discontinued operations in accordance with Statement of Financial Standards (SFAS) No.144, “Accounting for the Impairment or Disposal of Long-Lived Assets.
” Accordingly, OTN results of operations in prior periods have been reclassified to discontinued operations to conform with current year presentations.
The percent of the Company’s net sales by segment were as follows:


| (in millions) | Cash and cash equivalents | Accounts receivable | Inventories | Properties, plants and equipment | Goodwill | Income taxes receivable | Other assets | Accounts payable | Accrued liabilities | Long-term debt | Other long-term liabilities | Deferred income taxes | Net tangible and intangible assets acquired and liabilities assumed |


| Year endedDecember 31, Increase (Decrease) | Project Costs | (In millions) | Rilonacept | Aflibercept | VEGF Trap-Eye | REGN88 | Other research programs & unallocated costs | Total research and development expenses |


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) During 2008, incurred claims and claims expense related to prior years was primarily composed of net decreases in auto reserves of $27 million offset by increases in homeowners reserves of $124 million due to catastrophe loss reestimates, and increases in other reserves of $55 million.
The $27 million favorable decreases in auto reserves and $55 million unfavorable increases in other reserves includes $45 million of IBNR losses reclassified from auto reserves to other reserves to be consistent with the recording of excess liability policy premiums and losses.
Incurred claims and claims expense includes unfavorable catastrophe loss reestimates of $125 million, net of reinsurance and other recoveries, primarily attributable to increased claim loss and expense reserves for litigation filed in conjunction with a Louisiana deadline for filing suits related to Hurricane Katrina.
During 2007, incurred claims and claims expense related to prior years was primarily composed of net decreases in auto reserves of $311 million due to claim severity development that was better than expected, offset by increases in homeowners reserves of $115 million due to catastrophe loss reestimates, and increases in environmental reserves of $63 million.
Incurred claims and claims expense includes unfavorable catastrophe loss reestimates of $127 million, net of reinsurance and other recoveries, primarily attributable to increased claim loss and expense reserves for 2005 catastrophe events.
During 2006, incurred claims and claims expense related to prior years was primarily composed of net decreases in auto reserves of $737 million due to claim severity development that was better than expected, and late reported loss development that was better than expected due to lower frequency trends in recent years, decreases in homeowners reserves of $244 million due to catastrophe loss reestimates, claim severity development and late reported loss development that were better than expected, and decreases in other reserves of $122 million due to catastrophe loss reestimates and commercial lines loss development that was better than expected, offset by increases in asbestos reserves of $86 million.
Claims and claims expense during 2006 includes favorable catastrophe loss reestimates of $223 million, net of reinsurance and other recoveries, including a $63 million reduction in the Company’s accrual for an assessment from FL Citizens and $62 million due to recoupments of prior year assessments from FL Citizens and Louisiana Citizens Property Insurance Corporation (‘‘LA Citizens’’).
Management believes that the reserve for property-liability claims and claims expense, net of recoverables, is appropriately established in the aggregate and adequate to cover the ultimate net cost of reported and unreported claims arising from losses which had occurred by that date based on available facts, technology, laws and regulations.
For further discussion of assessments from FL Citizens and LA Citizens, and asbestos and environmental reserves, see Note 13.8.
Reserve for Life-Contingent Contract Benefits and Contractholder Funds At December 31, the reserve for life-contingent contract benefits consists of the following:


| Average SeatingCapacity AverageAge(Years) Owned Leased Total | Airbus A319 | Airbus A320 | Airbus A321 | Airbus A330-200 | Airbus A330-300 | Boeing 737-800 | Boeing 737-8 MAX | Boeing 757-200 | Boeing 767-300ER | Boeing 777-200ER | Boeing 777-300ER | Boeing 787-8 | Boeing 787-9 | Embraer 190 | McDonnell Douglas MD-80 | Total |


| Capital Expenditures Depreciation and Amortization | (DOLLARS IN THOUSANDS) | Taste | Scent | Frutarom | Unallocated assets | Consolidated | 2016 | U.S.Plans | Actuarial assumptions used to determine benefit obligations as of December 31: | Discount rate | Rate of compensation increase | Actuarial assumptions used to determine net periodic pension cost for years ended December 31: | Discount rate (a) | Expected long-term rate of return on plan assets (b) | Rate of compensation increase | In millions | Expense/(Income): | Discount rate | Expected long-term rate of return on plan assets | Rate of compensation increase | December 31, 2008 | Problem, potential problem, and restructured | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve months | Total fixed maturity securities, available-for-sale |


GENERAL MOTORS COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Acquisition of Strasbourg On October 1, 2010 we acquired 100% of the outstanding equity interest of General Motors Strasbourg S. A.
S (GMS) for cash of one Euro from MLC.
GMS is an entity engaged in the business of developing and manufacturing automatic transmissions for luxury and performance light automotive vehicles which was previously owned by Old GM but retained by MLC in connection with the 363 Sale.
MLC was unable to sell GMS and upon notification of their plan to liquidate GMS, we agreed to repurchase the business.
We believe the repurchase of GMS allows us to maintain good relationships and to help expand our business within the European region.
We recorded the fair value of the assets acquired and liabilities assumed as of October 1, 2010, the date we obtained control, and have included GMS’s results of operations and cash flows from that date forward.
The following table summarizes the amounts recorded in connection with the acquisition of GMS, which are included in our GME segment (dollars in millions):


| Twelve Months Ended | (Millions of Dollars) | Operating revenues | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Gas operating income | Thousands of Dt Delivered | Twelve Months Ended | Description | Residential | General | Firm transportation | Total firm sales and transportation | Interruptible sales(c) | NYPA | Generation plants | Other | Other operating revenues(d) | Total |


| Pension Benefits Other Postretirement Benefits | As of December 31 (in millions) | Net actuarial loss | Prior service credit | Total pre-tax amounts included in AOCL |


| For Years Ended December 31 | 2010 | (In millions, except per share data) | INCOME (LOSS) | Net income (loss) from continuing operations (GAAP) | Preferred dividends and accretion (GAAP) | Net income (loss) from continuing operations available to common shareholders (GAAP) | Net income (loss) from discontinued operations, net of tax (GAAP) | Net income (loss) available to common shareholders (GAAP) | Income (loss) from continuing operations available to common shareholders (GAAP) | Merger-related charges, pre-tax | Salaries and employee benefits | Net occupancy expense | Furniture and equipment expense | Other | Total merger-related charges, pre-tax | Merger-related charges, net of tax | Goodwill impairment | Regulatory charge | Income from continuing operations, excluding merger, goodwill impairment and regulatory charges (non-GAAP) | Weighted-average diluted shares | Earnings (loss) per common share—diluted (GAAP) | Earnings per common share from continuing operations, excluding merger, goodwill impairment and regulatory charges—diluted(non-GAAP) |


Risks Related to Our Common Stock Our stock price is extremely volatile.
The trading price of our common stock has been extremely volatile and may continue to be volatile in the future.
Many factors could have an impact on our stock price, including fluctuations in our or our competitors operating results, clinical trial results or adverse events associated with our products, product development by us or our competitors, changes in laws, including healthcare, tax or intellectual property laws, intellectual property developments, changes in reimbursement or drug pricing, the existence or outcome of litigation or government proceedings, including the SEC/DOJ investigation, failure to resolve, delays in resolving or other developments with respect to the issues raised in the Warning Letter, acquisitions or other strategic transactions, and the perceptions of our investors that we are not performing or meeting expectations.
The trading price of the common stock of many biopharmaceutical companies, including ours, has experienced extreme price and volume fluctuations, which have at times been unrelated to the operating performance of the companies whose stocks were affected.
Anti-takeover provisions in our charter and bylaws and under Delaware law could make a third-party acquisition of us difficult and may frustrate any attempt to remove or replace our current management.
Our corporate charter and by-law provisions may discourage certain types of transactions involving an actual or potential change of control that might be beneficial to us or our stockholders.
Our bylaws provide that special meetings of our stockholders may be called only by the Chairman of the Board, the President, the Secretary, or a majority of the Board of Directors, or upon the written request of stockholders who together own of record 25% of the outstanding stock of all classes entitled to vote at such meeting.
Our bylaws also specify that the authorized number of directors may be changed only by resolution of the board of directors.
Our charter does not include a provision for cumulative voting for directors, which may have enabled a minority stockholder holding a sufficient percentage of a class of shares to elect one or more directors.
Under our charter, our board of directors has the authority, without further action by stockholders, to designate up to 5 shares of preferred stock in one or more series.
The rights of the holders of common stock will be subject to, and may be adversely affected by, the rights of the holders of any class or series of preferred stock that may be issued in the future.
Because we are a Delaware corporation, the anti-takeover provisions of Delaware law could make it more difficult for a third party to acquire control of us, even if the change in control would be beneficial to stockholders.
We are subject to the provisions of Section 203 of the Delaware General Laws, which prohibits a person who owns in excess of 15% of our outstanding voting stock from merging or combining with us for a period of three years after the date of the transaction in which the person acquired in excess of 15% of our outstanding voting stock, unless the merger or combination is approved in a prescribed manner.


| In millions 2015 | Expense/(Income): | Discount rate | Expected long-term rate of return on plan assets | Rate of compensation increase |


Recent Developments Discontinuance of American Living During the fourth quarter of Fiscal 2012, we decided with our wholesale partner J. C.  Penney Company, Inc.  (JCPenney) to discontinue the majority of the products sold under the American Living brand created for and exclusively sold to JCPenney, effective for the Fall 2012 wholesale selling season.
As a result of this decision, we recorded pretax restructuring charges of approximately $3 million primarily related to severance actions during Fiscal 2012.
The discontinuance of these American Living product lines is not expected to have a material impact on the Companys consolidated or segment results.
Asia-Pacific Restructuring Plan In May 2011, we initiated a restructuring plan to reposition and upgrade our existing distribution network and merchandising operations in the AsiaPacific region, which includes mainland China, Macau, Hong Kong, Taiwan, Malaysia, Singapore, Japan and South Korea (the Asia-Pacific Restructuring Plan).
This plan includes a reduction in workforce and the closure of certain retail stores and concession shops that do not support the new merchandising strategy.
Actions related to the Asia-Pacific Restructuring Plan resulted in pretax charges of approximately $6 million in Fiscal 2012.
Assumption of Bedding and Bath Operations In May 2011, the license for our Lauren by Ralph Lauren bedding and bath products previously held by WestPoint Home, Inc.  expired in accordance with the underlying agreement and we assumed control over this wholesale business.
No significant payment or other consideration was provided related to this license expiration.
WestPoint Home, Inc.  will remain the exclusive licensee for our Lauren basic bedding program, which includes utility and blanket products.
South Korea Licensed Operations Acquisition On January 1, 2011, in connection with the transition of the Ralph Lauren-branded apparel and accessories business in South Korea (the Ralph Lauren South Korea business) from a licensed to a wholly owned operation, 4


| Fiscal Year Fourth Quarter Third Quarter Second Quarter First Quarter | FISCAL YEAR 2011: | Dividends paid per share | Stock price range: | High | Low | FISCAL YEAR 2010: | Dividends paid per share | Stock price range: | High | Low | Year Ended April 30, 2011 | Total revenues | Cost of revenues | Selling, general and administrative | Total expenses | Operating income (loss) | Other income, net | Income (loss) from continuing operations before taxes (benefit) | Income taxes (benefit) | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) | Year Ended April 30, 2010 | Total revenues | Cost of revenues | Selling, general and administrative | Total expenses | Operating income (loss) | Other income, net | Income (loss) from continuing operations before taxes (benefit) | Income taxes (benefit) | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) |


| Percentage of Plans Assets at December 31, Long-term Target Allocation | Asset Category | Equity securities | Debt securities, including cash | Real estate | Other | 100% |


| Year Gallons Consumed(in millions) Average CostPer Gallon Total Cost(in millions) Percent of Total Operating Expenses | 2011 | 2012 | 2013 |


| Years Ended March 31, | (In millions, except per share amounts) | Net income (loss), as reported | Compensation expense, net of tax: | APB Opinion No. 25 expense included in net income | SFAS No. 123 expense | Pro forma net income (loss) | Earnings (loss) per common share: | Diluted — as reported | Diluted — pro forma | Basic — as reported | Basic — pro forma |


Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 12.
Employee and Agent Benefits — (continued) Estimated Future Benefit Payments The estimated future benefit payments, which reflect expected future service, and the expected amount of tax-free subsidy receipts under Medicare Part D are:


| Key Performance IndicatorsTwelve Months EndedDecember 31, | 2018 | (In millions, except per share data) | Operating revenue | Operating revenue change | Operating income | Operating margin | Net income attributable to Equifax | Diluted earnings per share | Cash provided by operating activities | Capital expenditures* |


| Site Location Start Court or Agency Estimated Liability(a) % of Total(a) | Maxey Flats Nuclear | Curcio Scrap Metal | Metal Bank of America | Cortese Landfill | Global Landfill | PCB Treatment, Inc. | Borne Chemical | Site | Maxey Flats Nuclear | Curcio Scrap Metal | Metal Bank of America | Cortese Landfill | Global Landfill | Borne Chemical |


| General and administrative expenses - 2011 $43.1 | Reduction to overall pool of overhead costs -1 | Increased absorption of costs by wholly-owned development and leasing activities -2 | Reduced allocation of costs to Service Operations and Rental Operations -3 | General and administrative expenses - 2012 |


| Payments Due During the Year Ending December 31, Debt Operating Leases Purchase Obligations Total | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | $2,000,499 |


| 2009 | Amortized Cost | (in millions) | Fixed maturities, held to maturity | Foreign government bonds | Corporate securities | Asset-backed securities-1 | Commercial mortgage-backed securities | Residential mortgage-backed securities-2 | Total fixed maturities, held to maturity |


| Useful Life in Years | Computer and other equipment | Buildings | Furniture and fixtures | Leasehold improvements (average) |


| MSA Rank Deposits(in millions) Market Share | Columbus, OH | Cleveland, OH | Detroit, MI | Akron, OH | Indianapolis, IN | Cincinnati, OH | Pittsburgh, PA | Toledo, OH | Grand Rapids, MI | Chicago, IL | Source: FDIC.gov, based on June 30, 2018 survey. |


NOTE 22.  BUSINESS SEGMENT INFORMATION Each of Regions’ reportable segments is a strategic business unit that serves specific needs of Regions’ customers based on the products and services provided.
The segments are based on the manner in which management views the financial performance of the business.
The Company has three reportable segments: Business Services, Consumer Services and Wealth Management, with the remainder split between Discontinued Operations and Other.
During the third quarter of 2012, Regions reorganized its internal management structure and, accordingly, its segment reporting structure.
Historically, Regions’ primary business segment was Banking/ Treasury, representing the Company’s banking network (including the Consumer & Commercial Banking function along with the Treasury function).
Other segments included Investment Banking/Brokerage/Trust and Insurance.
During the second quarter of 2012, Regions consummated the sale of Morgan Keegan (the primary component of Investment Banking/Brokerage/Trust).
Shortly thereafter, Regions announced organizational changes to better integrate and execute the Company’s strategic priorities across all lines of business and geographies.
As a result, Regions revised its reportable segments as described below.
Prior periods’ information has been restated to conform to the current periods’ presentation.
The Business Services segment represents the Company’s commercial banking functions including commercial and industrial, commercial real estate and investor real estate lending.
This segment also includes equipment lease financing.
Business Services customers include corporate, middle market, small business and commercial real estate developers and investors.
Corresponding deposit products related to these types of customers are included in this segment.


| Year ended December 31, 2013 | $ in millions | Total operating revenues | Total operating expenses | Operating income | Equity in earnings of unconsolidated affiliates | Interest and dividend income | Other gains and losses, net | Interest and dividend income of CIP | Interest expense of CIP | Other gains/ (losses) of CIP, net | Income from continuing operations, net of income taxes | Income tax provision | Income from continuing operations, net of income taxes | Income from discontinued operations, net of income taxes | Net income | Net (income)/loss attributable to noncontrolling interests in consolidated entities | Net income attributable to Invesco Ltd. |


| Project Name(a) Generating Capacity Owned 9 Power Purchase Agreement Term in Years n/a(b) Year of Initial Investment 2010 Location New Jersey Maximum Exposure to Loss (In Millions)(c) $26 | Mesquite Solar 1 | Copper Mountain Solar 2 | Copper Mountain Solar 3 | California Solar | Texas Solar 4 | Broken Bow II |


| December 31 2008 2007 | Total assets | Total liabilities | Non-controlling interest | Stockholders’ equity | Total liabilities, non-controlling interest and stockholders’ equity | Year ended December 31 | Total revenue | Total expenses | Operating income | Non-operating income (expense) | Income before income taxes and non-controlling interest | Income taxes | Non-controlling interest | Net income |


| Year Ended December 31, | 2018 | Americas | Europe, Middle East and Africa | Asia-Pacific | Total revenue | Year Ended December 31, | 2018 | $ | Operating expenses: | Research and development | Sales and marketing | General and administrative | Legal settlement | Total operating expenses |


| Year -1 Interest component of dual currency investments Cross-currency coupon swap element of synthetic dual currency investments  (in billions) Total Yen-denominated earnings subject to these investments Weighted average exchange rate per U.S. Dollar  (Yen per $) | 2010 | 2011 | 2012 | 2013-2034 | Total |


| Year ended December 31 (in millions) 2015 2014 2013 % Change 2014 to 2015 % Change 2013 to 2014 | Revenue | Operating costs and expenses | Operating income before depreciation and amortization |


Notes to Consolidated Financial Statements EASTMAN CHEMICAL COMPANY AND SUBSIDIARIES Guarantees In November 2002, the FASB issued Interpretation No.45 (
FIN 45
),
Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others
, an interpretation of FASB Statements No.5, 57, and 107 and Rescission of FASB Interpretation No.34.
FIN 45 clarifies the requirements of SFAS No.5,
Accounting for Contingencies
, relating to the guarantor’s accounting for, and disclosure of, the issuance of certain types of guarantees.
Disclosures about each group of similar guarantees are provided below and summarized in the following table:


| Year Ended December 31, Change | (dollars in millions) | Revenues | Costs of revenue, exclusive of depreciationand amortization | Selling, general and administrative expenses | Segment profit |


| December 31, 2010 December 31, 2009 | Amortized Cost-1 | (in millions) | Less than three months | Three months or greater but less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Greater than twelve months | Total |


| 2008 2007 | Conversions | 1.5% Series A debentures | 2.125% Series B debentures | $448 | Expected Maturity Dates | 2009 | Fixed rate debt | 5.25% Guaranteed Bonds (Euro denominated) | 2.125% Series B Convertible Debentures | 5.14% Guaranteed Notes (Canadian dollar denominated) | 5.875% Guaranteed Bonds (Euro denominated) | 6.5% Notes | Total fixed rate debt | Variable rate debt | Total |


| December 31, | 2008 | (in millions) | Assets: | U.S. Asset Accumulation | Global Asset Management | International Asset Management and Accumulation | Life and Health Insurance | Corporate | Total consolidated assets | For the year ended December 31, | Long-Term Performance Plan | Expected volatility | Expected term (in years) | Risk-free interest rate | Dividend yield |


| Accounts receivable $96 | Inventory | Property, plant, and equipment - net | Purchased intangible assets | Purchased goodwill | Other assets | Deferred tax liability | Accounts payable and other current liabilities | Interest bearing debt | Other long-term liabilities | Net assets acquired | Supplemental information: | Cash paid | Less: Cash acquired | Cash paid, net of cash acquired |


| Asset Category Level 1 Level 2 Level 3 Total | Short-term investments: | Fixed Income Securities: | Corporate | RMBS | U.S. Treasuries | Foreign government | CMBS | Other fixed income [1] | Mortgage Loans | Equity Securities: | Large-cap domestic | Mid-cap domestic | International | Total pension plan assets at fair value, in the fair value hierarchy [2] | Other Investments, at net asset value [3]: | Private Market Alternatives | Hedge funds | Total pension plan assets at fair value. |


| Rental  Income Sublease  Income Gross  Rental  Payments | (In millions) | 2012 | 2013 | 2014 | 2015 | 2016 | Thereafter |


| Net Charge-offs Net Charge-off Ratios-1 | (Dollars in millions) | U.S. commercial-2 | Commercial real estate | Commercial lease financing | Non-U.S.commercial | 3,066 | U.S. small business commercial | Total commercial |


| Cash consideration paid to ACTIVE Network stockholders $599,497 | Fair value of Global Payments common stock issued to ACTIVE Network stockholders | Total purchase consideration | (In thousands) | Cash and cash equivalents | Investment income receivables, net | Mutual funds: | Equity securities-1 | Equity securities – international-2 | Fixed income securities-3 | Total | (In thousands) | Fiscal 2011 | Fiscal 2012 | Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | Fiscal 2016 to 2020 | Years Ended February 28 or 29 | (In thousands) | 2010 | Service cost | Interest cost | Expected returnon plan assets | Amortization ofprior service cost | Recognizedactuarial(gain) loss | Pension (benefit)expense | Curtailment (gain)loss | Net pension(benefit) expense |


| Amount (In Thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | Years thereafter | Total | Less: Amount representing interest | Present value of net minimum lease payments |


(1) Represents the total long-term debt included in the liabilities of consolidated VIEs on the Consolidated Balance Sheet.
Trust Preferred and Hybrid Securities Trust preferred securities (Trust Securities) are primarily issued by trust companies (the Trusts) that are not consolidated.
These Trust Securities are mandatorily redeemable preferred security obligations of the Trusts.
The sole assets of the Trusts generally are junior subordinated deferrable interest notes of the Corporation or its subsidiaries (the Notes).
The Trusts generally are 100 percent-owned finance subsidiaries of the Corporation.
Obligations associated with the Notes are included in the longterm debt table on page 168.
Certain of the Trust Securities were issued at a discount and may be redeemed prior to maturity at the option of the Corporation.
The Trusts generally have invested the proceeds of such Trust Securities in the Notes.
Each issue of the Notes has an interest rate equal to the corresponding Trust Securities distribution rate.
The Corporation has the right to defer payment of interest on the Notes at any time or from time to time for a period not exceeding five years provided that no extension period may extend beyond the stated maturity of the relevant Notes.
During any such extension period, distributions on the Trust Securities will also be deferred, and the Corporations ability to pay dividends on its common and preferred stock will be restricted.
The Trust Securities generally are subject to mandatory redemption upon repayment of the related Notes at their stated maturity dates or their earlier redemption at a redemption price equal to their liquidation amount plus accrued distributions to the date fixed for redemption and the premium, if any, paid by the Corporation upon concurrent repayment of the related Notes.
Periodic cash payments and payments upon liquidation or redemption with respect to Trust Securities are guaranteed by the Corporation or its subsidiaries to the extent of funds held by the Trusts (the Preferred Securities Guarantee).
The Preferred Securities Guarantee, when taken together with the Corporations other obligations including its obligations under the Notes, generally will constitute a full and unconditional guarantee, on a subordinated basis, by the Corporation of payments due on the Trust Securities.


| Assets and liabilities measured at fair value | (Dollar amounts in millions) | Assets: | Investments: | Available-for-sale | Held-to-maturity | Trading | Other investments: | Consolidated sponsored investment funds | Equity method | Deferred compensation plan hedge fund equity method investments | Carried interest | Cost method investments | Total investments | Separate account assets | Collateral held under securities lending agreements | Other assets-2 | Total | Liabilities: | Collateral liability under securities lending agreements |


| 2017 2016 | Quarter | First | Second | Third | Fourth (Separation occurred on November 1, 2016) | Year |


| (Thousands of Barrels per Day) 2006 2005 2004 | Gasoline | Distillates | Propane | Feedstocks and Special Products | Heavy Fuel Oil | Asphalt | TOTAL(a) | Average sales price ($ per barrel) |


| Amount (In Millions) | 2015 net revenue | Retail electric price | Transmission equalization | Volume/weather | Louisiana Act 55 financing savings obligation | Other | 2016 net revenue |


| International Visa Inc. | 12 months endedJune 30,2017 vs 2016-1 | Nominal | Payments volume growth | Consumer credit | Consumer debit-3 | Commercial-4 | Total payments volume growth-5 | Cash volume growth | Total volume growth-5 |


| Receivables, net $807 | Inventories, net | Other current assets | Property, plant and equipment, net | Goodwill | Intangible assets | Other noncurrent assets | Total assets of the disposal group | Accounts payable | Customer advances and amounts in excess of costs incurred | Salaries, benefits and payroll taxes | Other current liabilities | Deferred income taxes | Other noncurrent liabilities | Total liabilities of the disposal group |


| 2011 2010 2009 2008 | $63,191 |


The fair value of restricted stock awards vested during the years ended December 31, 2010, 2009 and 2008 was $42 million, $27 million and $59 million, respectively.


NONINTEREST INCOME Summary Noninterest income was $7.1 billion for 2009 and $2.4 billion for 2008.
Noninterest income for 2009 included the following: ?
The gain on BlackRock/BGI transaction of $1.076 billion, ?
Net credit-related other-than-temporary impairments (OTTI) on debt and equity securities of $577 million, ?
Net gains on sales of securities of $550 million, ?
Gains on hedging of residential mortgage servicing rights of $355 million, ?
Valuation and sale income related to our commercial mortgage loans held for sale, net of hedges, of $107 million, ?
Gains of $103 million related to our BlackRock LTIP shares adjustment in the first quarter, and net losses on private equity and alternative investments of $93 million.
Noninterest income for 2008 included the following: ?
Net OTTI on debt and equity securities of $312 million, ?
Gains of $246 million related to our BlackRock LTIP shares adjustment, ?
Valuation and sale losses related to our commercial mortgage loans held for sale, net of hedges, of $197 million, ?
Impairment and other losses related to private equity and alternative investments of $180 million, ?
Income from Hilliard Lyons totaling $164 million, including the first quarter gain of $114 million from the sale of this business, ?
Net gains on sales of securities of $106 million, and ?
A gain of $95 million related to the redemption of a portion of our Visa Class B common shares related to Visas March 2008 initial public offering.
Additional analysis Asset management revenue increased $172 million to $858 million in 2009, compared with $686 million in 2008.
This increase reflected improving equity markets, new business generation and a shift in assets into higher yielding equity investments during the second half of 2009.
Assets managed totaled $103 billion at both December 31, 2009 and 2008, including the impact of National City.
The Asset Management Group section of the Business Segments Review section of this Item 7 includes further discussion of assets under management.
Consumer services fees totaled $1.290 billion in 2009 compared with $623 million in 2008.
Service charges on deposits totaled $950 million for 2009 and $372 million for 2008.
Both increases were primarily driven by the impact of the National City acquisition.
Reduced consumer spending,
benefit of $46 million of gross interest and penalties, decreasing income tax expense.
The total accrued interest and penalties at December 31, 2014 was $41 million.
At December 31, 2015, the total accrued interest and penalties was not significant.
During 2015, we recognized $202 million of amortization, $224 million of tax credits and $74 million of other tax benefits associated with qualified investments in low income housing tax credits within Income taxes.


| December 31, 2014 December 31, 2013 December 31, 2012 | $ in millions | Total operating revenues | Total operating expenses | Operating income | Equity in earnings of unconsolidated affiliates | Interest and dividend income | Interest expense | Other gains and losses, net | Other income/(expense) of CSIP, net | Interest and dividend income of CIP | Interest expense of CIP | Other gains/(losses) of CIP, net | Income from continuing operations before taxes | Income tax provision | Income from continuing operations, net of taxes | Income from discontinued operations, net of taxes | Net income | (Gains)/losses attributable to noncontrolling interests in consolidated entities, net | Net income attributable to common shareholders | (Millions) | Due in one year or less | Due after one year through three years | Due after three years through five years | Due after five years | Total marketable securities |


| December 31, | (Dollars in thousands) | Commercial loans: | Software and internet -1 | Hardware -1 | Private equity/venture capital | Life science & healthcare -1 | Premium wine | Other -1 | Total commercial loans | Real estate secured loans: | Premium wine -2 | Consumer loans -3 | Other | Total real estate secured loans | Construction loans -4 | Consumer loans | Total loans, net of unearned income -5(6) |


Selected Financial Data The table below summarizes our selected historical financial information for each of the last five years.
The summary of operations data for the years ended December 31, 2016, 2015, 2014, and the balance sheet data as of December 31, 2016 and 2015, have been derived from our audited Consolidated Financial Statements included in this report.
The summary of operations data for the years ended December 31, 2013 and 2012, and the balance sheet data as of December 31, 2014, 2013 and 2012, have been derived from our audited Consolidated Financial Statements not included in this report.
The historical selected financial information may not be indicative of our future performance and should be read in conjunction with the information contained in Managements Discussion and Analysis of Financial Condition and Results of Operations, and the Consolidated Financial Statements and the accompanying Notes to the Consolidated Financial Statements in this report.


Earnings Per Share. ?
?Our basic earnings per share, or EPS, is calculated as net income divided by the weightedaverage number of common shares outstanding during the reporting period.
Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding.
The net income amounts used in both our basic and diluted EPS calculations are the same.
A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows:


Notes to Consolidated Financial Statements – (continued) (Amounts in Millions, Except Per Share Amounts) Stock-based compensation awards expected to be settled in cash have been classified as liabilities in our Consolidated Balance Sheets as of December 31, 2015 and 2014


| December 31 - dollars in millions 2011 (a) 2010 (a) 2009 (a) 2008 (a) 2007 | Nonperforming loans | Commercial | Commercial real estate | Equipment lease financing | TOTAL COMMERCIAL LENDING | Consumer (b) | Home equity | Residential real estate (c) | Credit card (d) | Other consumer | TOTAL CONSUMER LENDING | Total nonperforming loans (e) | OREO and foreclosed assets | Other real estate owned (OREO) (f) | Foreclosed and other assets | TOTAL OREO AND FORECLOSED ASSETS | Total nonperforming assets | Nonperforming loans to total loans | Nonperforming assets to total loans, OREO and foreclosed assets | Nonperforming assets to total assets | Interest on nonperforming loans | Computed on original terms | Recognized prior to nonperforming status | Past due loans | Accruing loans past due 90 days or more (g) | As a percentage of total loans | Past due loans held for sale | Accruing loans held for sale past due 90 days or more (h) | As a percentage of total loans held for sale |


| 2016 2015 | Television programming | Released, less amortization | In production | Pre-production | Theatrical programming | In production | Total program production costs |


ITEM 5.
MARKET FOR THE REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Information on the market for our common stock, number of shareowners and dividends is located in Note 15 within Notes to Consolidated Financial Statements.
In December 2012, our board of directors approved a share repurchase program authorizing us to repurchase shares of our common stock amounting to $300 million during 2013.
On April 26, 2013, the board of directors approved an authorization to repurchase up to $1 billion in shares through April 2014.
In February 2014, the board of directors approved a new authorization to repurchase up to $1.5 billion in shares through December 2015.
This authorization supersedes the April 2013 authorization and is intended to allow us to repurchase shares for general corporate purposes and to offset issuances for employee benefit programs.
During 2013, the Company repurchased approximately 9 million shares for a total of $544 million.
The following table provides information with respect to purchases of common shares under programs authorized by our board of directors during the quarter ended December 28, 2013.


| December 31,2011 December 31,2012 December 31,2013 December 31,2014 December 31,2015 December 31,2016 | DISCA | DISCB | DISCK | S&P 500 | Peer Group |


IRON MOUNTAIN INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) DECEMBER 31, 2013 (In thousands, except share and per share data) 2.
Summary of Significant Accounting Policies (Continued) Flows.
This requirement reduces reported operating cash flows and increases reported financing cash flows.
As a result, net financing cash flows from continuing operations included $919, $1,045 and $2,389 for the years ended December 31, 2011, 2012 and 2013, respectively, from the benefits of tax deductions in excess of recognized compensation cost.
The tax benefit of any resulting excess tax deduction increases the Additional Paid-in Capital (
‘‘APIC’’) pool.
Any resulting tax deficiency is deducted from the APIC pool.
Stock Options Under our various stock option plans, options were granted with exercise prices equal to the market price of the stock on the date of grant.
The majority of our options become exercisable ratably over a period of five years from the date of grant and generally have a contractual life of ten years from the date of grant, unless the holder’s employment is terminated sooner.
Certain of the options we issue become exercisable ratably over a period of ten years from the date of grant and have a contractual life of 12 years from the date of grant, unless the holder’s employment is terminated sooner.
As of December 31, 2013, ten-year vesting options represented 7.5% of total outstanding options.
Beginning in 2011, certain of the options we issue become exercisable ratably over a period of three years from the date of grant and have a contractual life of ten years from the date of grant, unless the holder’s employment is terminated sooner.
As of December 31, 2013, three-year vesting options represented 20.5% of total outstanding options.
Our non-employee directors are considered employees for purposes of our stock option plans and stock option reporting.
Options granted to our non-employee directors generally become exercisable one year from the date of grant.
In December 2008, we amended each of the Iron Mountain Incorporated 2002 Stock Incentive Plan, the Iron Mountain Incorporated 1997 Stock Option Plan and the LiveVault Corporation 2001 Stock Incentive Plan (each a ‘‘Plan’’) to provide that any unvested options and other awards granted under each respective Plan shall vest immediately should an employee be terminated by the Company, or terminate his or her own employment for good reason (as defined in each Plan), in connection with a vesting change in control (as defined in each Plan).
The Mimosa Systems, Inc.  2009 Equity Incentive Plan and the Mimosa Systems, Inc.  2003 Stock Plan were similarly amended in June 2010.
A total of 38,917,411 shares of common stock have been reserved for grants of options and other rights under our various stock incentive plans.
The number of shares available for grant at December 31, 2013 was 5,814,061.
The weighted average fair value of options granted in 2011, 2012 and 2013 was $7.42, $7.00 and $7.69 per share, respectively.
These values were estimated on the date of grant using the Black-Scholes option pricing model.
The following table summarizes the weighted average assumptions used for grants in the year ended December 31:


| North America Asia Europe Total | December 30, 2006 | Net sales to external customers | Long-lived assets | Net assets | December 31, 2005 | Net sales to external customers | Long-lived assets | Net assets | December 25, 2004 | Net sales to external customers | Long-lived assets | Net assets |


The application of U. S.  GAAP requires the Company to evaluate the recoverability of deferred tax assets and establish a valuation allowance if necessary to reduce the deferred tax asset to an amount that is more likely than not expected to be realized.
Considerable judgment is required in determining whether a valuation allowance is necessary, and if so, the amount of such valuation allowance.
In evaluating the need for a valuation allowance the Company considers many factors, including: (1) the nature of the deferred tax assets and liabilities; (2) whether they are ordinary or capital; (3) in which tax jurisdictions they were generated and the timing of their reversal; (4) taxable income in prior carryback years as well as projected taxable earnings exclusive of reversing temporary differences and carryforwards; (5) the length of time that carryovers can be utilized in the various taxing jurisdictions; (6) any unique tax rules that would impact the utilization of the deferred tax assets; and (7) any tax planning strategies that the Company would employ to avoid a tax benefit from expiring unused.
Although realization is not assured, management believes it is more likely than not that the deferred tax assets, net of valuation allowances, will be realized.
A valuation allowance has been recorded primarily related to tax benefits associated with state and local and foreign deferred tax assets.
The valuation allowance as of December 31, 2009 and 2008, respectively, includes $178 million and $172 million recorded in connection with state and local deferred tax assets and $94 million and $152 million recorded in connection with foreign deferred tax assets.
Adjustments to the valuation allowance will be made if there is a change in managements assessment of the amount of the deferred tax asset that is realizable.
At December 31, 2009 and 2008, respectively, the Company had federal net operating and capital loss carryforwards of $737 million and $1,094 million, which expire between 2013 and 2030.
At December 31, 2009 and 2008, respectively, the Company had state net operating and capital loss carryforwards for tax purposes approximating $2,408 million and $1,868 million, which expire between 2010 and 2030.
At December 31, 2009 and 2008, respectively, the Company had foreign operating loss carryforwards for tax purposes approximating $528 million and $547 million, $486 million of which expires between 2014 and 2016 and $42 million of which have an unlimited carryforward.
The Company does not provide U. S.  income taxes on unremitted foreign earnings of its non-U.
S.  operations, other than its Japanese operations and certain German, Taiwan, United Kingdom, and Korean investment management subsidiaries.
During 2007, the Company sold its investment in its German operating joint ventures Oppenheim Pramerica Fonds Trust GmbH and Oppenheim Pramerica Asset Management S. a. r. l.  Accordingly, the earnings were no longer considered permanently reinvested and the Company recognized an income tax expense of $9 million related to those earnings.
In addition, in 2007, the Company determined that the earnings from certain of its United Kingdom investment management subsidiaries would be repatriated to the U. S.  Accordingly, earnings from those United Kingdom investment management subsidiaries were no longer considered permanently reinvested.
An income tax benefit of $23 million associated with the assumed repatriation of those earnings was recognized in discontinued operations in 2007.
During 2008, the Company made no changes with respect to its repatriation assumptions.
During 2009, the Company sold its investment in its Mexican subsidiaries Prudential Financial Operadora de Sociedades de Inversion S. A.  de C. V. , Prudential Bank, S. A.  Institucion de Banca, and Prudential Consultoria S de RL de C. V.  Accordingly, the earnings were no longer considered permanently reinvested and the Company recognized an income tax expense of $6 million related to the sale in Income from discontinued operations, net of taxes in 2009.
In addition, in 2009, the Company determined that the earnings from certain of its Korean investment management subsidiaries would be repatriated to the U. S.  Accordingly, earnings from those Korean investment management subsidiaries were no longer considered permanently reinvested and the Company recognized an income tax expense of $66 million associated with the assumed repatriation of those earnings in 2009.
The Company had undistributed earnings of foreign subsidiaries, where it assumes permanent reinvestment, of $1,710 million at December 2009, $1,723 million at December 31, 2008 and $1,516 million at December 31, 2007, for which U. S.  deferred taxes have not been provided.
Determining the tax liability that would arise if these earnings were remitted is not practicable.
result of the expiration of the statute of limitations for the 2002 and 2003 tax years.
In addition, current year income taxes include the benefit from a revision of the estimated income taxes for 2008, based upon the filing of the 2008 federal income tax return in the third quarter.
The 2008 income tax benefit of $487 million reflects the benefit of the dividends received deduction as well as the impact of a lower level of earnings.
For additional information regarding income taxes, see Note 19 to the Consolidated Financial Statements.
Discontinued Operations Included within net income are the results of businesses which are reflected as discontinued operations under U. S.  GAAP.
Income from discontinued operations, net of taxes, was $19 million, $18 million and $20 million for the years ended December 31, 2009, 2008 and 2007, respectively.
For additional information regarding discontinued operations see Note 3 to the Consolidated Financial Statements.
Divested Businesses Our income from continuing operations includes results from several businesses that have been or will be sold or exited that do not qualify for discontinued operations accounting treatment under U. S.  GAAP.
The results of these divested businesses are reflected in our Corporate and Other operations, but excluded from adjusted operating income.
A summary of the results of these divested businesses that have been excluded from adjusted operating income is as follows for the periods indicated:


| Non-accrual assets—Total Citicorp 2010 2009 2008 2007 2006 | Non-accrual loans (NAL) | OREO | Other repossessed assets | Non-accrual assets (NAA) | NAA as a percentage of total assets | Allowance for loan losses as a percentage of NAL-1 | Non-accrual assets—Total Citi Holdings | Non-accrual loans (NAL) | OREO | Other repossessed assets | Non-accrual assets (NAA) | NAA as a percentage of total assets | Allowance for loan losses as a percentage of NAL-1 |


Other Businesses Pretax loss for our Other Businesses of $18 million for 2012 compared to pretax income of $41 million for 2011.
The year-over-year decline primarily reflects the combined effect of costs in connection with a litigation settlement associated with our military services business in 2012, reserve strengthening for our closed block of long-term care insurance policies in 2012, and a change in profitability under the current TRICARE South Region contract in connection with our bid strategy.
Liquidity Our primary sources of cash include receipts of premiums, services revenue, and investment and other income, as well as proceeds from the sale or maturity of our investment securities and borrowings.
Our primary uses of cash include disbursements for claims payments, operating costs, interest on borrowings, taxes, purchases of investment securities, acquisitions, capital expenditures, repayments on borrowings, dividends, and share repurchases.
Because premiums generally are collected in advance of claim payments by a period of up to several months, our business normally should produce positive cash flows during periods of increasing premiums and enrollment.
Conversely, cash flows would be negatively impacted during periods of decreasing premiums and enrollment.
From period to period, our cash flows may also be affected by the timing of working capital items.
The use of operating cash flows may be limited by regulatory requirements which require, among other items, that our regulated subsidiaries maintain minimum levels of capital and seek approval before paying dividends from the subsidiaries to the parent.
Our use of operating cash flows derived from our non-insurance subsidiaries, such as in our Healthcare Services segment, is generally not restricted by Departments of Insurance.
For 2014, the effect of the commercial risk adjustment, risk corridor, and reinsurance provisions of the Health Care Reform Law will impact the timing of our operating cash flows, as we expect to build a receivable in 2014 that will be collected in 2015.
It is reasonably possible that the receivable could be material to our operating cash flow in 2014.
In 2014, we expect our operating cash flows to decline from 2013.
Any amounts receivable or payable associated with these risk limiting programs should not have a significant impact on subsidiary capital and surplus.
For additional information on our liquidity risk, please refer to Item 1A.
Risk Factors in this report.
Cash and cash equivalents decreased to $1.1 billion at December 31, 2013 from $1.3 billion at December 31, 2012.


(a) Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b) Included cash collateral netted of $61.6 billion and $64.2 billion related to OTC and OTC-cleared derivatives at December 31, 2015, and 2014, respectively.
(c) The prior period amounts have been revised to conform with the current period presentation.
These revisions had no impact on Firms Consolidated balance sheets or its results of operations.
In addition to the cash collateral received and transferred that is presented on a net basis with net derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash).
These amounts mitigate counterparty credit risk associated with the Firms derivative instruments but are not eligible for net presentation, because (a) the collateral consists of non-cash financial instruments (generally U. S.  government and agency securities and other Group of Seven Nations (G7) government bonds), (b) the amount of collateral held or transferred exceeds the fair value exposure, at the individual counterparty level, as of the date presented, or (c) the collateral relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained.


| Year Ended December 31, | (millions) | Statements of Operations Information | Operating Revenues | Operating Expenses | Operating Income | Other (Income) Net | Income Before Income Taxes | Income Tax Provision | Net Income |


Other-Than-Temporary Impairments on Investment Securities.
In April 2009, the FASB revised the authoritative guidance for the recognition and presentation of other-than-temporary impairments.
This new guidance amends the recognition guidance for other-than-temporary impairments of debt securities and expands the financial statement disclosures for other-than-temporary impairments on debt and equity securities.
For available for sale debt securities that the Company has no intent to sell and more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment would be recognized in earnings, while the rest of the fair value loss would be recognized in accumulated other comprehensive income (loss).
The Company adopted this guidance effective April 1, 2009.
Upon adoption the Company recognized a cumulative-effect adjustment increase in retained earnings (deficit) and decrease in accumulated other comprehensive income (loss) as follows:


| % Change2013-2012 % Change2012-2011 | Amortization of purchased intangibles and technology license arrangements | Cost of sales | Excess and obsolete inventory | Various individually insignificant items | Total change |


| Year ended December 31In millions Retail Banking Corporate & Institutional Banking BlackRock PFPC Other Intercompany Eliminations Consolidated | 2007 | INCOMESTATEMENT | Net interest income (expense) | Noninterest income | Total revenue | Provision for (recoveries of) credit losses | Depreciation and amortization | Other noninterest expense | Earnings (loss) before income taxes | Income taxes | Earnings (loss) | Inter-segment revenue | Average Assets (a) | 2006 | INCOMESTATEMENT | Net interest income (expense) | Noninterest income | Total revenue | Provision for (recoveries of) credit losses | Depreciation and amortization | Other noninterest expense | Earnings (loss) before minority interests in BlackRock and income taxes | Minority interests in BlackRock | Income taxes | Earnings (loss) | Inter-segment revenue | Average Assets (a) | 2005 | INCOMESTATEMENT | Net interest income (expense) | Noninterest income | Total revenue | Provision for (recoveries of) credit losses | Depreciation and amortization | Other noninterest expense | Earnings before minority interests in BlackRock and income taxes | Minority interests in BlackRock | Income taxes | Earnings (loss) | Inter-segment revenue | Average Assets (a) |


| (in millions) Years Ended December 31, | 2013 | Corporate: | Medium / Large | Small Business | Total Corporate | Public: | Government | Education | Healthcare | Total Public | Dividend Amount | $0.0425 | $0.0425 | $0.0425 | $0.0675 |


Total AUM increased $24.3 billion, or 4%, to $658.6 billion as of December 31, 2014 compared to $634.3 billion as of December 31, 2013 due to a $21.0 billion increase in Advice & Wealth Management AUM driven by wrap account net inflows and market appreciation and a $4.8 billion increase in Asset Management AUM primarily driven by market appreciation, partially offset by retail fund distributions.
See our segment results of operations discussion below for additional information on changes in our AUM.


| Percent Increase (Decrease) | 2010 | (in millions, except percentages) | Cash Flow Data: | Net cash provided by operating activities | Net cash (used in) provided by investing activities | Net cash provided by (used in) financing activities | Balance Sheet Data: | Current assets | Current liabilities | Long-term liabilities | Equity |


Computation Products operating loss of $23 million in 2003 improved by $638 million compared to $661 million in 2002.
The improvement was primarily due to incremental net sales of $204 million and a decrease in both manufacturing costs of $330 million and marketing, general and administrative expenses of $39 million, which resulted primarily from our cost reduction initiatives and the 2002 Restructuring Plan.
In addition, cooperative advertising and marketing expenses decreased by $55 million from 2002.
Computation Products operating loss of $661 million in 2002 increased by $470 million compared to $191 million in 2001 primarily due to a decrease in net sales.
The decrease was primarily due to a decline in average selling prices of 13 percent and a decline in unit sales of 16 percent for microprocessors as a result of the sustained downturn in the PC industry.


| Year Ended September 30, | (In millions) | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by (used for) financing activities |