Unconditional Purchase Obligations Approximately $390 of our long-term unconditional purchase obligations relate to feedstock supply for numerous HyCO (hydrogen, carbon monoxide, and syngas) facilities.
The price of feedstock supply is principally related to the price of natural gas.
However, long-term take-or-pay sales contracts to HyCO customers are generally matched to the term of the feedstock supply obligations and provide recovery of price increases in the feedstock supply.
Due to the matching of most long-term feedstock supply obligations to customer sales contracts, we do not believe these purchase obligations would have a material effect on our financial condition or results of operations.
Refer to Note 17, Commitments and Contingencies, to the consolidated financial statements for additional information on our unconditional purchase obligations.
The unconditional purchase obligations also include other product supply and purchase commitments and electric power and natural gas supply purchase obligations, which are primarily pass-through contracts with our customers.
In addition, purchase commitments to spend approximately $540 for additional plant and equipment are included in the unconditional purchase obligations in 2016.
We also purchase materials, energy, capital equipment, supplies, and services as part of the ordinary course of business under arrangements that are not unconditional purchase obligations.
The majority of such purchases are for raw materials and energy, which are obtained under requirements-type contracts at market prices.


Net Sales Comparison for Years Ended December 28, 2003 and December 29, 2002 Total net sales of $3,519 million in 2003 increased 30 percent compared to net sales of $2,697 million in 2002.
Computation Products net sales of $1,960 million in 2003 increased 12 percent compared to net sales of $1,756 million in 2002.
The increase in net sales was primarily due to a 15 percent increase in microprocessor unit shipments due primarily to increased demand from our OEM customers, partially offset by a decline of four percent in the average selling prices of our microprocessor products.
Unit shipment growth was particularly strong in Latin America and China, which accounted for 77 percent of overall unit growth.
Memory Products net sales of $1,419 million in 2003 increased 92 percent compared to net sales of $741 million in 2002.
The increase in net sales was primarily attributable to the effect of consolidating FASL LLCs results of operations, which include FASL LLCs sales to Fujitsu, and increased demand for Flash memory products.
Further quantification of the breakdown in the increase in net sales is not practical due to the reorganization of geographical sales territories between AMD and Fujitsu.
All Other net sales of $140 million in 2003 decreased 30 percent compared to net sales of $200 million in 2002 and consisted primarily of net sales of our Personal Connectivity Solutions products.
The decrease was due


| Pension Benefits Other Postretirement Benefits | (in millions) | Amortization of transition obligation | Amortization of prior service cost | Amortization of actuarial (gain) loss, net | Total |


| December 31, 2011In millions 1 Year or Less 1 Through 5 Years After 5 Years Gross Loans | Commercial | Commercial real estate - Real estate projects | Total | Loans with: | Predetermined rate | Floating or adjustable rate | Total |


The following table summarizes the premiums and losses that are ceded by the Company to Mt.
Logan Re segregated accounts and assumed by the Company from Mt.
Logan Re segregated accounts.


| Premiums Payable Premiums Receivable | (in millions) | 2016 | 2017 | 2018 | 2019 | 2020 | 2021-2027 | Total |


Note 28  Regulatory capital The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company.
The OCC establishes similar capital requirements and standards for the Firms national banks, including JPMorgan Chase Bank, N. A.  and Chase Bank USA, N. A.  Basel III rules under the transitional Standardized and Advanced Approaches (Basel III Standardized Transitional and Basel III Advanced Transitional, respectively) became effective on January 1, 2014; December 31, 2013 data is based on Basel I rules.
Basel III establishes two comprehensive methodologies for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk.
Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk- weightings which vary primarily by counterparty type and asset class.
Market risk RWA is calculated mostly consistent across Basel III Standardized and Basel III Advanced, both of which incorporate the requirements set forth in Basel 2.5.
For 2014, Basel III Standardized Transitional requires the Firm to calculate its capital ratios using the Basel III definition of capital divided by the Basel I definition of RWA, inclusive of Basel 2.5 for market risk.
Beginning in 2014, there are three categories of risk-based capital under the Basel III Transitional rules: Common Equity Tier 1 capital (CET1 capital), as well as Tier 1 capital and Tier 2 capital.
CET1 capital predominantly includes common stockholders equity (including capital for AOCI related to debt and equity securities classified as AFS as well as for defined benefit pension and OPEB plans), less certain deductions for goodwill, MSRs and deferred tax assets that arise from NOL and tax credit carryforwards.
Tier 1 capital is predominantly comprised of CET1 capital as well as perpetual preferred stock.
Tier 2 capital includes long-term debt qualifying as Tier 2 and qualifying allowance for credit losses.
Total capital is Tier 1 capital plus Tier 2 capital.
On February 21, 2014, the Federal Reserve and the OCC informed the Firm and its national bank subsidiaries that they had satisfactorily completed the parallel run requirements and were approved to calculate capital under Basel III Advanced, in addition to Basel III Standardized, as of April 1, 2014.
In conjunction with its exit from the parallel run, the capital adequacy of the Firm and its national bank subsidiaries is evaluated against the Basel III approach (Standardized or Advanced) which results, for each quarter beginning with the second quarter of 2014, in the lower ratio (the Collins Floor), as required by the Collins Amendment of the Dodd-Frank Act.
The following tables present the regulatory capital, assets and risk-based capital ratios for JPMorgan Chase and its significant national bank subsidiaries under both Basel III Standardized Transitional and Basel III Advanced Transitional at December 31, 2014, and under Basel I at December 31, 2013.


| Amount (In Thousands) | 2014 | 2015 | 2016 | 2017 | 2018 |


| Total (in$millions) | 2006 | 2007 | 2008 | 2009 | 2010 | Thereafter-1 | Total |


| Payments due by | 2019 | Principal payments on debt | Interest payments on debt | Operating leases | Pension and other postretirement benefit plans | Purchase obligations | Total | Average Interest Rate | Cash equivalents: | Fixed rate | Variable rate | Short-term investments: | Fixed rate |


| Business Overview 20 | 2018 in Summary | 2019 Outlook | Results of Operations | Reconciliation of Non-GAAP Financial Measures | Liquidity and Capital Resources | Contractual Obligations | Pension Benefits | Environmental Matters | Off-Balance Sheet Arrangements | Related Party Transactions | Inflation | Critical Accounting Policies and Estimates | New Accounting Guidance |


The Company is required to establish a valuation allowance for any portion of the deferred tax assets that management believes will not be realized.
Included in deferred tax assets is a significant deferred tax asset relating to capital losses that have been recognized for financial statement purposes but not yet for tax return purposes.
Under current U. S.  federal income tax law, capital losses generally must be used against capital gain income within five years of the year in which the capital losses are recognized for tax purposes.
Significant judgment is required in determining if a valuation allowance should be established, and the amount of such allowance if required.
Factors used in making this determination include estimates relating to the performance of the business including the ability to generate capital gains.
Consideration is given to, among other things in making this determination, i) future taxable income exclusive of reversing temporary differences and carryforwards, ii) future reversals of existing taxable temporary differences, iii) taxable income in prior carryback years, and iv) tax planning strategies.
Based on analysis of the Company’s tax position, management believes it is more likely than not that the results of future operations and implementation of tax planning strategies will generate sufficient taxable income to enable the Company to utilize all of its deferred tax assets.
Accordingly, no valuation allowance for deferred tax assets has been established as of December 31, 2009 and 2008.
Included in the Company’s deferred income tax assets are tax benefits related to net operating loss carryforwards of $59 million which will expire beginning December 31, 2025 as well as tax credit carryforwards of $166 million which will expire beginning December 31, 2025.


PART IV ITEM 15.
EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K The Companys Consolidated Financial Statements and report of independent auditors are set forth on pages 61-101.
Financial Statement Schedules  All financial statement schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions, the required information is contained elsewhere in the Form 10-K, or the schedules are inapplicable and have therefore been omitted.
Exhibits  The index of exhibits and any exhibits filed as part of the 2002 Form 10-K are accessible at no cost on the Companys website at www.
zionsbancorporation.
com or through the United States Securities and Exchange Commissions website at www.
sec.
gov.
Copies of exhibits may also be requested from the Companys investor relations department.
Reports on Form 8-K filed during the fourth quarter of 2002 and through the date of this Form 10-K filing: October 4, 2002  Item 9.
Exhibit 99.
A copy of a press release dated October 3, 2002 reporting on charges related to expense reduction plans and impaired investments.
October 21, 2002  Items 5 and 7.
Exhibit 99.1.
A copy of a press release dated October 17, 2002 announcing third quarter 2002 earnings with additional statements of income by quarter.
November 14, 2002  Items 7 and 9.
Exhibits 99.1 and 99.2.
Certifications, dated November 14, 2002, of Chief Executive Officer of the Company, Harris H.  Simmons, and Chief Financial Officer, Doyle L.  Arnold, pursuant to 18 U. S. C.  Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
January 23, 2003  Item 9.
Exhibit 99.
A copy of a press release dated January 23, 2003 announcing fourth quarter 2002 earnings.


Entergy Corporation and Subsidiaries Notes to Financial Statements Reallocation Agreement (Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and System Energy) System Energy, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans entered into the Reallocation Agreement relating to the sale of capacity and energy from Grand Gulf and the related costs, in which Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans agreed to assume all of Entergy Arkansass responsibilities and obligations with respect to Grand Gulf under the Availability Agreement. ?
?The FERCs decision allocating a portion of Grand Gulf capacity and energy to Entergy Arkansas supersedes the Reallocation Agreement as it relates to Grand Gulf. ?
?Responsibility for any Grand Gulf 2 amortization amounts has been individually allocated (Entergy Louisiana-26.23%, Entergy Mississippi-43.97%, and Entergy New Orleans-29.80%) under the terms of the Reallocation Agreement. ?
?However, the Reallocation Agreement does not affect Entergy Arkansass obligation to System Energys lenders under the assignments referred to in the preceding paragraph. ?
?Entergy Arkansas would be liable for its share of such amounts if Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans were unable to meet their contractual obligations. ?
?No payments of any amortization amounts will be required so long as amounts paid to System Energy under the Unit Power Sales Agreement, including other funds available to System Energy, exceed amounts required under the Availability Agreement, which is expected to be the case for the foreseeable future.
Entergy Corporation and Subsidiaries Notes to Financial Statements 150 NOTE 9.
ASSET RETIREMENT OBLIGATIONS (Entergy Corporation, Entergy Arkansas, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, Entergy Texas, and System Energy) Accounting standards require companies to record liabilities for all legal obligations associated with the retirement of long-lived assets that result from the normal operation of the assets. ?
?For Entergy, substantially all of its asset retirement obligations consist of its liability for decommissioning its nuclear power plants. ?
?In addition, an insignificant amount of removal costs associated with non-nuclear power plants is also included in the decommissioning line item on the balance sheets.  ?
These liabilities are recorded at their fair values (which are the present values of the estimated future cash outflows) in the period in which they are incurred, with an accompanying addition to the recorded cost of the longlived asset. ?
?The asset retirement obligation is accreted each year through a charge to expense, to reflect the time value of money for this present value obligation. ?
?The accretion will continue through the completion of the asset retirement activity. ?
?The amounts added to the carrying amounts of the long-lived assets will be depreciated over the useful lives of the assets. ?
?The application of accounting standards related to asset retirement obligations is earnings neutral to the rate-regulated business of the Registrant Subsidiaries.
In accordance with ratemaking treatment and as required by regulatory accounting standards, the depreciation provisions for the Registrant Subsidiaries include a component for removal costs that are not asset retirement obligations under accounting standards. ?
?In accordance with regulatory accounting principles, the Registrant Subsidiaries have recorded regulatory assets (liabilities) in the following amounts to reflect their estimates of the difference between estimated incurred removal costs and estimated removal costs recovered in rates:


| December 31, 2009 | Amortized cost | (in millions) | Finance — Banking | Finance — Brokerage | Finance — Finance Companies | Finance — Financial Other | Finance — Insurance | Finance — REITS | Industrial — Basic Industry | Industrial — Capital Goods | Industrial — Communications | Industrial — Consumer Cyclical | Industrial — Consumer Non-Cyclical | Industrial — Energy | Industrial — Other | Industrial — Technology | Industrial — Transportation | Utility — Electric | Utility — Natural Gas | Utility — Other | FDIC guaranteed | Government guaranteed | Total corporate securities | Residential pass-through securities | Commercial mortgage-backed securities | Residential collateralized mortgage obligations -1 | Asset-backed securities — Home equity -2 | Asset-backed securities — All other | Collateralized debt obligations — Credit | Collateralized debt obligations — CMBS | Collateralized debt obligations — Loans | Collateralized debt obligations — ABS -3 | Total mortgage-backed and other asset-backed securities | U.S. Government and agencies | States and political subdivisions | Non-U.S. governments | Total fixed maturity securities, available-for-sale |


| In millions December 312014 December 31 2013 | Home equity and residential real estate loans – excluding purchased impaired loans (a) | Home equity and residential real estate loans – purchased impaired loans (b) | Government insured or guaranteed residential real estate mortgages (a) | Purchase accounting adjustments – purchased impaired loans | Total home equity and residential real estate loans (a) |


| Three Months Ended 2018 | March 31 | Total revenues | Income (loss) before income taxes and equity income from investments in unconsolidated joint ventures | Net income (loss) | Net income (loss) applicable to HCP, Inc. | Dividends paid per common share | Basic earnings per common share | Diluted earnings per common share | Three Months Ended 2017 | March 31 | Total revenues | Income (loss) before income taxes and equity income from investments in unconsolidated joint ventures | Net (loss) income | Net (loss) income applicable to HCP, Inc. | Dividends paid per common share | Basic earnings per common share | Diluted earnings per common share |


| As of December 31, | 2015 | (Dollars in thousands) | BALANCE SHEET DATA: | Cash and cash equivalents | Total assets -5 | Long-term debt, including current portion, net -5 | Notes payable on real estate, net -5 | Total liabilities -5 | Total CBRE Group, Inc. stockholders’ equity |


| 2017 2016 2015 | Ameren Missouri | Ameren Illinois Electric Distribution | Ameren Illinois Natural Gas | Ameren Illinois Transmission | ATXI | Other(a) | Ameren |


| Payments Due by Period | As of December 31, 2006 (in millions) | Borrowings | Subordinated notes | Total on-balance-sheet | Operating leases | Purchase obligations | Total |


The change in operating working capital elements, excluding the impact of currency and acquisitions, was an increase of $195 million during the year ended December 31, 2011.
This increase was the net result of an increase in receivables from customers associated with the 2011 increase in sales and an increase in FIFO inventory slightly offset by an increase in trade creditors’ liabilities.
Trade receivables from customers, net, as a percentage of fourth quarter sales, annualized, for 2011 was 17.9 percent, down slightly from 18.1 percent for 2010.
Days sales outstanding was 66 days in 2011, level with 2010.
Inventories on a FIFO basis as a percentage of fourth quarter sales, annualized, for 2011 was 13.1 percent level with 2010.
Inventory turnover was 5.0 times in 2011 and 4.6 times in 2010.
Total capital spending, including acquisitions, was $446 million, $341 million and $265 million in 2011, 2010, and 2009, respectively.
Spending related to modernization and productivity improvements, expansion of existing businesses and environmental control projects was $390 million, $307 million and $239 million in 2011, 2010, and 2009, respectively, and is expected to be in the range of $450-$550 million during 2012.
Capital spending, excluding acquisitions, as a percentage of sales was 2.6%, 2.3% and 2.0% in 2011, 2010 and 2009, respectively.
Capital spending related to business acquisitions amounted to $56 million, $34 million, and $26 million in 2011, 2010 and 2009, respectively.
We continue to evaluate acquisition opportunities and expect to use cash in 2012 to fund small to mid-sized acquisitions, as part of a balanced deployment of our cash to support growth in earnings.
In January 2012, the Company closed the previously announced acquisitions of Colpisa, a Colombian producer of automotive OEM and refinish coatings, and Dyrup, a European architectural coatings company.
The cost of these acquisitions, including assumed debt, was $193 million.
Dividends paid to shareholders totaled $355 million, $360 million and $353 million in 2011, 2010 and 2009, respectively.
PPG has paid uninterrupted annual dividends since 1899, and 2011 marked the 40th consecutive year of increased annual dividend payments to shareholders.
We did not have a mandatory contribution to our U. S.  defined benefit pension plans in 2011; however, we made voluntary contributions to these plans in 2011 totaling $50 million.
In 2010 and 2009, we made voluntary contributions to our U. S.  defined benefit pension plans of $250 and $360 million (of which $100 million was made in PPG stock), respectively.
We expect to make voluntary contributions to our U. S.  defined benefit pension plans in 2012 of up to $60 million.
Contributions were made to our non-U.
S.  defined benefit pension plans of $71 million, $87 million and $90 million (of which approximately $20 million was made in PPG stock) for 2011, 2010 and 2009, respectively, some of which were required by local funding requirements.
We expect to make mandatory contributions to our non-U.
S.  plans in 2012 of approximately $90 million.
The Company’s share repurchase activity in 2011, 2010 and 2009 was 10.2 million shares at a cost of $858 million, 8.1 million shares at a cost of $586 million and 1.5 million shares at a cost of $59 million, respectively.
We expect to make share repurchases in 2012 as part of our cash deployment focused on earnings growth.
The amount of spending will depend on the level of acquisition spending and other uses of cash, but we currently expect to spend in the range of $250 million to $500 million on share repurchases in 2012.
We can repurchase about 9 million shares under the current authorization from the Board of Directors.


The unaudited pro forma financial information includes adjustments for amortization of identifiable intangible assets, accretion of discounts to fair value associated with debt, environmental, self-insurance and other liabilities, accretion of capping, closure and post-closure obligations and amortization of the related assets, and provision for income taxes.
Assets Held For Sale As a condition of the merger with Allied, the Department of Justice (DOJ) required us to divest of certain assets and related liabilities.
As such, we classified these assets and liabilities as assets held for sale in our consolidated balance sheet at December 31, 2008.
Certain of the legacy Republic assets classified as held for sale were adjusted to their estimated fair values less costs to sell and resulted in the recognition of an asset impairment loss of $1.8 million and $6.1 million in our consolidated statements of income for the years ended December 31, 2009 and 2008, respectively.
The assets held for sale related to operations that were Allied’s were recorded at their estimated fair values in our consolidated balance sheet as of December 31, 2008 in


| 2018 2017 2016 | Total FAS expense and CAS costs | FAS pension expense | Less: CAS pension cost | Net FAS/CAS pension adjustment | Service and non-service cost reconciliation | FAS pension service cost | Less: CAS pension cost | FAS/CAS operating adjustment | Non-operating FAS pension expense(a) | Net FAS/CAS pension adjustment |


| Amount (In Millions) | 2014 net revenue | Volume/weather | Retail electric price | Net wholesale revenue | Transmission equalization | Reserve equalization | Other | 2015 net revenue |


| Year Ended May 31, | 2015 | Revenues: | United States | Canada | North America merchant services | Europe | Asia-Pacific | International merchant services | Consolidated revenues |


| Qualified Pension Nonqualified Pension Postretirement Benefits | December 31 (Measurement Date) – in millions | Accumulated benefit obligation at end of year | Projected benefit obligation at beginning of year | National City acquisition | RBC Bank (USA) acquisition | Service cost | Interest cost | Actuarial (gains)/losses and changes in assumptions | Participant contributions | Federal Medicare subsidy on benefits paid | Early Retirement Reinsurance Program payments received | Benefits paid | Settlement payments | Projected benefit obligation at end of year | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contribution | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Settlement payments | Fair value of plan assets at end of year | Funded status | Amounts recognized on the consolidated balance sheet | Noncurrent asset | Current liability | Noncurrent liability | Net amount recognized on the consolidated balance sheet | Amounts recognized in accumulated other comprehensive income consist of: | Prior service cost (credit) | Net actuarial loss | Amount recognized in AOCI | Shares in thousands | December 31, 2012 | Granted | Vested/Released | Forfeited | December 31, 2013 |


MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Embedded Derivatives The Company has certain embedded derivatives that are required to be separated from their host contracts and accounted for as derivatives.
These host contracts principally include: variable annuities with guaranteed minimum withdrawal, guaranteed minimum accumulation and certain guaranteed minimum income riders; ceded reinsurance contracts related to guaranteed minimum accumulation and certain guaranteed minimum income riders; and guaranteed investment contracts with equity or bond indexed crediting rates.
The following table presents the estimated fair value of the Companys embedded derivatives at:


Corporate operations primarily consist of executive management, administrative support services, substantially all of our share-based compensation and transaction and integration costs related to the Scripps Networks acquisition.
Adjusted OIBDA decreased 8% due to increased costs related to personnel, legal and technology for data security.
The impairment of goodwill presented above for corporate and inter-segment eliminations is a portion of the total goodwill impairment recorded for the European reporting unit during 2017.
The remaining portion of the impairment of $489 million is a component of our International Networks segment.
The presentation of goodwill impairment is consistent with the financial reports that are reviewed by the Company's CEO.
Goodwill has been allocated from corporate assets to reporting units within corporate and inter-segment eliminations.
The decrease in mark-to-market share-based compensation expense was primarily attributable to a decrease in Discovery's stock price in 2017 compared to 2016.
Changes in stock price are a key driver of fair value estimates used in the attribution of expense for stock appreciation rights ("SARs") and performance-based restricted stock units ("PRSUs").
By contrast, stock options and service-based restricted stock units ("RSUs") are fair valued at grant date and amortized over their vesting period without mark-to-market adjustments.
The expense associated with stock options and RSUs is included in Adjusted OIBDA as a component of selling, general and administrative expense.
Items Impacting Comparability From time to time certain items may impact the comparability of our consolidated results of operations between two periods.
In comparing the financial results for the years 2017 and 2016, the Company has identified foreign currency as one such item, as noted below.
The Company also has various acquisitions and dispositions that impact the comparability of our results.
To the extent that the transaction materially impacts a particular item or segment, it may be discussed in the relevant section above (see Note 3 to the accompanying consolidating financial statements).
Foreign Currency The impact of exchange rates on our business is an important factor in understanding period to period comparisons of our results.
For example, our international revenues are favorably impacted as the U. S.  dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.
S dollar strengthens relative to other foreign currencies.
We believe the presentation of results on a constant currency basis ("ex-FX"), in addition to results reported in accordance with GAAP, provides useful information about our operating performance because the presentation ex-FX excludes the effects of foreign currency volatility and highlights our core operating results.
The presentation of results on a constant currency basis should be considered in addition to, but not a substitute for, measures of financial performance reported in accordance with GAAP.
The ex-FX change represents the percentage change on a period-over-period basis adjusted for foreign currency impacts.
The ex-FX change is calculated as the difference between the current year amounts translated at a baseline rate, a spot rate for each of our currencies determined early in the fiscal year as part of our forecasting process, (the “2016 Baseline Rate”) and the prior year amounts translated at the same 2016 Baseline Rate.
In addition, consistent with the assumption of a constant currency environment, our ex-FX results exclude the impact of our foreign currency hedging activities as well as realized and unrealized foreign currency transaction gains and losses.
The impact of foreign currency on the comparability of our results is reflected in the tables below (in millions).
Results on a constant currency basis, as we present them, may not be comparable to similarly titled measures used by other companies.


[1]Effective January 1, 2018 , with the adoption of new accounting standards for financial instruments, equity securities, AFS were reclassified to equity securities at fair value and are excluded from the table above as of December?31, 2018.
As of December?31, 2018, AFS securities in an unrealized loss position consisted of 2,960 securities, primarily in the corporate and commercial real estate sectors, which were depressed primarily due to widening of credit spreads and an increase in interest rates since the securities were purchased.
As of December?31, 2018, 98% of these securities were depressed less than 20% of cost or amortized cost.
The increase in unrealized losses during 2018 was primarily attributable to widening of credit spreads and higher interest rates.
Most of the securities depressed for twelve months or more relate to corporate securities and structured securities with exposure to commercial real estate.
Corporate securities and commercial real estate securities were primarily depressed because current market spreads are wider and interest rates are higher than at the securities' respective purchase dates.
The Company neither has an intention to sell nor does it expect to be required to sell the securities outlined in the preceding discussion.


| For the years ended December 31, | 2016 | DAC | SIA | Unearned Revenue Reserve ("URR") | Death and Other Insurance Benefit Reserves | Total (before tax) | Income tax effect | Total (after-tax) |


| Year Capitalized Leases Operating Leases Debt Principal Purchase Commitments Other Liabilities | 2006 | 2007 | 2008 | 2009 | 2010 | After 2010 | Total |


| Millions 2015 2014 2013 | Cash provided by operating activities | Cash used in investing activities | Dividends paid | Free cash flow |


| Price Range Dividends  per Share | High | 2011 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2010 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


Note 21.
Expenses During the fourth quarter of 2008, we elected to provide support to certain investment accounts managed by SSgA through the purchase of asset- and mortgage-backed securities and a cash infusion, which resulted in a charge of $450 million.
SSgA manages certain investment accounts, offered to retirement plans, that allow participants to purchase and redeem units at a constant net asset value regardless of volatility in the underlying value of the assets held by the account.
The accounts enter into contractual arrangements with independent third-party financial institutions that agree to make up any shortfall in the account if all the units are redeemed at the constant net asset value.
The financial institutions have the right, under certain circumstances, to terminate this guarantee with respect to future investments in the account.
During 2008, the liquidity and pricing issues in the fixed-income markets adversely affected the market value of the securities in these accounts to the point that the third-party guarantors considered terminating their financial guarantees with the accounts.
Although we were not statutorily or contractually obligated to do so, we elected to purchase approximately $2.49 billion of asset- and mortgage-backed securities from these accounts that had been identified as presenting increased risk in the current market environment and to contribute an aggregate of $450 million to the accounts to improve the ratio of the market value of the accounts’ portfolio holdings to the book value of the accounts.
We have no ongoing commitment or intent to provide support to these accounts.
The securities are carried in investment securities available for sale in our consolidated statement of condition.
The components of other expenses were as follows for the years ended December 31:


SVB FINANCIAL GROUP AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued) Investments in Entities that Calculate Net Asset Value Per Share FASB guidance over certain fund investments requires that we disclose the fair value of funds, significant investment strategies of the investees, redemption features of the investees, restrictions on the ability to sell investments, estimate of the period of time over which the underlying assets are expected to be liquidated by the investee, and unfunded commitments related to the investments.
Our investments in debt funds and venture capital and private equity fund investments generally cannot be redeemed.
Alternatively, we expect distributions, if any, to be received primarily through IPOs and M&A activity of the underlying assets of the fund.
We currently do not have any plans to sell any of these fund investments.
If we decide to sell these investments in the future, the investee funds management must approve of the buyer before the sale of the investments can be completed.
The fair values of the fund investments have been estimated using the net asset value per share of the investments, adjusted for any differences between our measurement date and the date of the fund investments net asset value by using the most recently available financial information from the investee general partner, for example September 30 th , for our December 31 st consolidated financial statements, adjusted for any contributions paid, distributions received from the investment, and significant fund transactions or market events during the reporting period.


| Available under the 2013 Credit Facility $2,210,025 | Available under the 2014 Credit Facility | Letters of credit | Total available under credit facilities, net | Cash and cash equivalents -1 | Total liquidity |


BALANCE SHEET OVERVIEW As Adjusted Balance Sheet The following table presents a reconciliation of the consolidated statement of financial condition presented on a GAAP basis to the consolidated statement of financial condition, excluding the impact of separate account assets and separate account collateral held under securities lending agreements (directly related to lending separate account securities) and separate account liabilities and separate account collateral liabilities under securities lending agreements and consolidated sponsored investment funds, including consolidated VIEs.
The Company presents the as adjusted balance sheet as additional information to enable investors to exclude certain
included being in stock in core product offerings, which are products that we plan to have available for sale over the next twelve months and beyond at full price.
In addition, our inventory strategy included shipping seasonal product at the start of the shipping window in order to maximize the productivity of our floor sets and earmarking any seasonal excess for our retail outlet stores.
In 2008, we plan to continue to focus on meeting consumer demand while improving our inventory efficiency.
We believe that our cash and cash equivalents on hand, cash from operations and borrowings available to us under our revolving credit and subordinated debt facilities will be adequate to meet our liquidity needs and capital expenditure requirements for at least the next twelve months.
As our business continues to grow, we may consider additional funding sources to meet our liquidity and capital needs.
Cash Flows The following table presents the major components of net cash flows used in and provided by operating, investing and financing activities for the years presented:


Macro Hedge Program The Company utilizes equity swaps, options, futures, and forwards to provide partial protection against the statutory tail scenario risk arising from GMWB and the guaranteed minimum death benefit (“GMDB”) liabilities on the Company’s statutory surplus.
These derivatives cover some of the residual risks not otherwise covered by the dynamic hedging program.
Contingent Capital Facility Put Option The Company entered into a put option agreement that provides the Company the right to require a third-party trust to purchase, at any time, The Hartford’s junior subordinated notes in a maximum aggregate principal amount of $500.
On February 8, 2017, The Hartford exercised the put option resulting in the issuance of $500 in junior subordinated notes with proceeds received on February 15, 2017.
Under the put option agreement, The Hartford had been paying premiums on a periodic basis and has agreed to reimburse the trust for certain fees and ordinary expenses.
For further information on the put option agreement, see the Contingent Capital Facility section within Note 13 - Debt.
Modified Coinsurance Reinsurance Contracts As of December 31, 2016 and 2015, the Company had approximately $875 and $895, respectively, of invested assets supporting other policyholder funds and benefits payable reinsured under a modified coinsurance arrangement in connection with the sale of the Individual Life business, which was structured as a reinsurance transaction.
The assets are primarily held in a trust established by the Company.
The Company pays or receives cash quarterly to settle the operating results of the reinsured business, including the investment results.
As a result of this modified coinsurance arrangement, the Company has an embedded derivative that transfers to the reinsurer certain unrealized changes in fair value of investments subject to interest rate and credit risk.
The notional amount of the embedded derivative reinsurance contracts are the invested assets which are carried at fair value and support the reinsured reserves.
Derivative Balance Sheet Classification For reporting purposes, the Company has elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals, and related cash collateral receivables and payables of OTC derivative instruments executed in a legal entity and with the same counterparty under a master netting agreement, which provides the Company with the legal right of offset.
The Company has also elected to offset within assets or liabilities based upon the net of the fair value amounts, income accruals and related cash collateral receivables and payables of OTC-cleared derivative instruments based on clearing house agreements.
The following fair value amounts do not include income accruals or related cash collateral receivables and payables, which are netted with derivative fair value amounts to determine balance sheet presentation.
Derivative fair value reported as liabilities after taking into account the master netting agreements was $963 and $1.1 billion as of December 31, 2016 and 2015, respectively.
Derivatives in the Company’s separate accounts, where the associated gains and losses accrue directly to policyholders, are not included in the table below.
The Company’s derivative instruments are held for risk management purposes, unless otherwise noted in the following table.
The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of the Company’s derivative activity.
Notional amounts are not necessarily reflective of credit risk.
The following tables exclude investments that contain an embedded credit derivative for which the Company has elected the fair value option.
For further discussion, see the Fair Value Option section in Note 5 - Fair Value Measurements of Notes to the Consolidated Financial Statements
Part II - Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations 39 Net Investment Income


NOTE 3 / PROPERTY ACQUISITIONS 2009 Acquisitions During 2009, we acquired the sub-leasehold positions at 420 Lexington Avenue for an aggregate purchase price of approximately $15.9 million.2008 Acquisitions In February 2008, we, through our joint venture with Jeff Sutton, acquired the properties located at 182 Broadway and 63 Nassau Street for approximately $30.0 million in the aggregate.
These properties are located adjacent to 180 Broadway which we acquired in August 2007.
As part of the acquisition we also closed on a $31.0 million loan which bears interest at 225 basis points over the 30-day LIBOR.
The loan has a three-year term and two one-year extensions.
We drew down $21.1 million at the closing to pay the balance of the acquisition costs.
During the second quarter of 2008, we, through a joint venture with NYSTERS, acquired various interests in the fee positions at 919 Third Avenue for approximately $32.8 million.
As a result, our joint venture controls the entire fee position.2007 Acquisitions In January 2007, we acquired Reckson for approximately $6.0 billion, inclusive of transaction costs.
Simultaneously, we sold approximately $2.0 billion of the Reckson assets to an asset purchasing venture led by certain of Reckson’s former executive management.
The transaction included the acquisition of 30 properties encompassing approximately 9.2 million square feet, of which five properties encompassing approximately 4.2 million square feet are located in Manhattan.
The following summarizes our allocation of the purchase price to the assets and liabilities acquired from Reckson (in thousands):


| Millions 2014 2013 2012 % Change2014 v 2013 % Change2013 v 2012 | Other income | Interest expense | Income taxes |


| Year Ended December 31, | 2011 | (In $ millions) | Cost of sales | Selling, general and administrative expenses |


Residential Mortgage Banking Residential Mortgage Banking earned $87 million in 2011 compared with $269 million in 2010.
The decline in earnings was driven by an increase in noninterest expense associated with increased costs for residential mortgage foreclosurerelated expenses, primarily as a result of ongoing governmental matters, and lower net interest income, partially offset by an increase in loan originations and higher loans sales revenue.


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 4.
INVESTMENTS (continued) of zero million) and $341 million (net of a valuation allowance of zero million), respectively.
As of December 31, 2007 and 2006, all of the Company’s commercial loans held for sale were collateralized, with collateral primarily consisting of office buildings, retail stores, apartment complexes and industrial buildings.
In certain transactions, the Company prearranges that it will sell the loan to an investor.
As of December 31, 2007 and 2006, $306 million and $93 million, respectively, of loans held for sale are subject to such arrangements.
Commercial mortgage loans in securitization transactions accounted for by the Company as sales totaled $3,589 million, $2,704 million and $2,437 million, for the years ended December 31, 2007, 2006 and 2005, respectively.
The Company generally retains the servicing responsibilities related to its commercial loan securitizations.
As of December 31, 2007, the Company also held commercial mortgage-backed securities representing a $191 million retained beneficial interest in the mortgage loans the Company transferred to certain securitization vehicles in 2007.
These commercial mortgage-backed securities are classified as “Other trading account assets.
” The Company recognized net pre-tax losses of $57 million for the year ended December 31, 2007, and net pre-tax gains of $36 million and $36 million for the years ended December 31, 2006 and 2005, respectively, in connection with securitization transactions, which are recorded in “Realized investment gains (losses), net.
” Other Long-term Investments “Other long-term investments” are comprised as follows at December 31:


Expenses 2005 to 2004 Annual Comparison.
Expenses, as shown in the table above under “—Operating Results,” increased $34 million, from $1.198 billion in 2004 to $1.232 billion in 2005, primarily reflecting higher incentive based compensation costs resulting from favorable performance in 2005.
Partially offsetting this increase is a reduction in commission expenses associated with the money market funds of brokerage clients of Wachovia Securities subject to the arrangements with Wachovia described above.
Additionally, 2004 results include charges related to declines in value of intangible assets, expenses incurred in exiting an operating facility and termination of activities related to certain of our international investment management operations.2004 to 2003 Annual Comparison.
Expenses increased $46 million, from $1.152 billion in 2003 to $1.198 billion in 2004, due primarily to higher incentive based compensation costs associated with increased revenues, as well as charges in 2004 related to declines in value of intangible assets, expenses incurred in exiting an operating facility and termination of activities related to certain of our international investment management operations.


| 2017 2016 2015 | Cash provided by operating activities | Purchases of property and equipment | Proceeds from sales of property and equipment | Free cash flow |


| Payments due by period (in millions) | 201 9 | Long-Term Debt: | Principal -1 | Interest -2 | Operating Leases: | Ground Leases -3 | Office Leases |


Notes to the Consolidated Financial Statements Contributions On August 17, 2006, the Pension Protection Act of 2006 (“PPA”) was signed into law, changing the funding requirements for the Company’s U. S.  defined benefit pension plans beginning in 2008.
Under the requirements of the PPA, PPG did not have to make a mandatory contribution to these plans in 2011 and does not expect to have a mandatory contribution to these plans in 2012 because of management’s intent to make voluntary contributions.
PPG made voluntary contributions to its U. S.  defined benefit pension plans of $50 million and $250 million in 2011 and 2010, respectively.
PPG made contributions to its non-U.
S.  defined benefit pension plans in 2011 of $71 million and approximately $85 million in 2010, some of which were required by local funding requirements.
PPG expects to make voluntary contributions of up to $60 million to its U. S.  plans and mandatory contributions to its non-U.
S.  plans of approximately $90 million in 2012.
Benefit Payments The estimated pension benefits to be paid under the Company’s defined benefit pension plans during the next five years are (in millions) $272 in 2012, $340 in 2013, $314 in 2014, $403 in 2015 and $297 in 2016 and are expected to aggregate $1,485 million for the five years thereafter.
The estimated other postretirement benefits to be paid during the next five years are (in millions) $88 in 2012, $86 in 2013, $87 in 2014, $88 in 2015 and $89 in 2016 and are expected to aggregate $449 million for the five years thereafter.
The Company expects to receive between $10 million and $13 million of subsidy under the Medicare Act of 2003 during each of the next five years and an aggregate amount of $84 million for the five years thereafter.
The 2011 subsidy under the Medicare Act of 2003 of $7 million was received as of December 31, 2011.
Plan Assets Each PPG sponsored defined benefit pension plan is managed in accordance with the requirements of local laws and regulations governing defined benefit pension plans for the exclusive purpose of providing pension benefits to participants and their beneficiaries.
Investment committees comprised of PPG managers have fiduciary responsibility to oversee the management of pension plan assets by third party asset managers.
Pension plan assets are held in trust by financial institutions and managed on a day-to-day basis by the asset managers.
The asset managers receive a mandate from each investment committee that is aligned with the asset allocation targets established by each investment committee to achieve the plan’s investment strategies.
The performance of the asset managers is monitored and evaluated by the investment committees throughout the year.
Pension plan assets are invested to generate investment earnings over an extended time horizon to help fund the cost of benefits promised under the plans while mitigating investment risk.
The asset allocation targets established for each pension plan are intended to diversify the investments among a variety of asset categories and among a variety of individual securities within each asset category to mitigate investment risk and provide each plan with sufficient liquidity to fund the payment of pension benefits to current retirees.
The following summarizes the weighted average target pension plan asset allocation as of December 31, 2011 and 2010 for all PPG defined benefit plans:


| (In millions) 2009 2008 2007 | Minimum rental(a) | Contingent rental | Net rental expense |


| Total % Increase Acquisition Impact % Increase without Acquisitions | Other Operating Expenses: | Repairs and maintenance | Depreciation and amortization | Purchased transportation | Fuel | Other occupancy | Other expenses | 18.5% | Year | 2008 | 2009 | 2010 | 2011 | 2012 | After 2012 | Total |


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  (continued) ACE LIMITED AND SUBSIDIARIES b) Shares issued, outstanding, authorized, and conditional The following table presents a roll-forward of changes in Common Shares issued and outstanding for the years ended December 31, 2010, 2009, and 2008.


| December 31, 2010 | 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 maturities, available-for-sale |


| ($ in millions) Foreign Currency Translation Pension and Other Postretirement Items, Net of Tax Effective Financial Derivatives, Net of Tax Accumulated Other Comprehensive Earnings (Loss) | December 31, 2003 | 2004 change | December 31, 2004 | 2005 change | December 31, 2005 | 2006 change | December 31, 2006 |


| At December 31, 2013 At December 31, 2012 | Fair Value | (dollars in millions) | Private equity funds | Real estate funds | Hedge funds-1: | Long-short equity hedge funds | Fixed income/credit-related hedge funds | Event-driven hedge funds | Multi-strategy hedge funds | Total |


Liquidity Available from Subsidiaries Liquidity available to the Company from its subsidiaries is limited by regulatory requirements.
In addition, neither E*TRADE Bank nor its subsidiaries may pay dividends to the parent company without approval from its regulators.
Loans by E*TRADE Bank to the parent company and its other non-bank subsidiaries are subject to various quantitative, arms length, collateralization and other requirements.
E*TRADE Bank is subject to capital requirements determined by its regulator.
At December 31, 2011 and 2010, E*TRADE Bank had $1.2 billion and $1.0 billion, respectively, of Tier I capital in excess of the regulatory minimum level required to be considered well capitalized.
 Since late 2009, the Company has requested and received the approval of its primary regulators to send quarterly dividends from E*TRADE Bank to the parent.
The dividend had been equal to profits from the previous quarter of E*TRADE Securities LLC.
We believe our former regulator, the OTS, viewed these dividend requests as distinct from a more comprehensive request to release a portion of E*TRADE Banks excess capital.
During the third quarter of 2011, the Company transitioned regulators from the OTS to the OCC and the Federal Reserve.
We believe our new regulators would subject all dividend requests to an equal level of scrutiny; therefore, rather than request a dividend from E*TRADE Bank in an amount equal to the profits of E*TRADE Securities LLC in the prior quarter, we believe the best path for the Companys shareholders is to work on a comprehensive dividend plan that efficiently distributes capital among our regulated entities and parent company.
The Company is in dialogue with the regulators regarding our ability to implement a comprehensive dividend plan and expects to complete that dialogue by the end of 2012.
Following the completion of that dialogue, we expect to have a better understanding of the timing of any future dividends; however, we cannot predict the likelihood or the timing of regulatory approval for any such dividends.
The Companys broker-dealer subsidiaries are subject to capital requirements determined by their respective regulators.
At December 31, 2011 and 2010, all of our brokerage subsidiaries met their minimum net capital


| Year Ended December 31, | 2012 -1(2) | (In millions, except per common share data) | Consolidated Statements of Operations Data-3: | Net sales | Gross profit | Impairment of goodwill and other intangible assets | Operating (loss) profit | Loss on debt redemption | (Loss) earnings from continuing operations before income tax provision | Net (loss) earnings from continuing operations | Net earnings from discontinued operations | Net gain on sale of discontinued operations | Net (loss) earnings available to common stockholders | Basic and diluted net earnings per common share: | Basic | Continuing operations | Discontinued operations | Net (loss) earnings per common share—basic | Diluted | Continuing operations | Discontinued operations | Net (loss) earnings per common share—diluted | Common stock dividends | Consolidated Balance Sheets Data: | Cash and cash equivalents | Goodwill | Intangible assets, net | Total assets | Settlement agreement and related accrued interest | Long-term debt, less current portion-4 | Total stockholders’ equity | Working capital (current assets less current liabilities) | Consolidated Cash Flows Data: | Net cash provided by operating activities | Net cash used in investing activities | Net cash (used in) provided by financing activities | Other Financial Data: | Depreciation and amortization | Share-based incentive compensation | Capital expenditures | Year Ended December 31, | 2014 | Net | (In millions, except per share data) | U.S. GAAP net earnings and EPS available to common stockholders from continuing operations-2 | Special items-3 | Non-U.S. GAAP adjusted net earnings and EPS available to common stockholders - continuing operations | Weighted average number of common sharesoutstanding - Diluted | 2016 | (In millions, except per share amounts) | Net sales | Gross profit | Net earnings available to common stockholders-1 | Net earnings per common share - basic-1(2) | Net earnings per common share - diluted-1(2) | 2015 | (In millions, except per share amounts) | Net sales | Gross profit | Net earnings available to common stockholders | Net earnings per common share - basic-2 | Net earnings per common share - diluted-2 |


| Year Ended December 31, | (millions, except per unit) | Interest Expense | Capitalized Interest | Interest Expense, Net | Unit Rate per BOE-1 |


| JPMorgan Chase & Co. | Basel III Standardized Transitional | (in millions,except ratios) | Regulatory capital | CET1 capital | Tier 1 capital(a) | Total capital | Assets | Risk-weighted | Adjusted average(b) | Capital ratios(c) | CET1 | Tier 1(a) | Total | Tier 1 leverage(d) |


| Four Quarters Ended Four Quarters Ended | Financial Covenants | Interest coverage ratio (not less than) | Actual interest coverage ratio | Depreciation and amortization | Leverage ratio (not greater than) | Actual leverage ratio |


Stock Purchase Plan.
The Company has an employee stock purchase plan (ESPP) that allows eligible and participating employees to purchase, through payroll deductions, shares of the Company’s common stock at 85 percent of the lower of the fair market value on the first or the last business day of the three-month offering
PART II ITEM 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities At January 25, 2019, we had 26,812 holders of record of our common stock, par value $1 per share.
Our common stock is traded on the New York Stock Exchange (NYSE) under the symbol LMT.
Information concerning dividends paid on Lockheed Martin common stock during the past two years is as follows: Common Stock - Dividends Paid Per Share


| December 31, 2018 December 31, 2017 | Collateralized Loan Obligations | Lowest Rating Agency Rating-1 | (in millions) | AAA | AA | A | BBB | BB and below | Total-2 |


| In millions of dollars 2010 2009 2008 % Change 2010 vs. 2009 % Change 2009 vs. 2008 | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Provisions for credit losses and for benefits and claims | Net credit losses | Credit reserve build (release) | Provision for loan losses | Provision for benefits and claims | Provision (release) for unfunded lending commitments | Total provisions for credit losses and for benefits and claims | Total operating expenses | Loss from continuing operations before taxes | Benefits for income taxes | (Loss) from continuing operations | Net income (loss) attributable to noncontrolling interests | Citi Holdings net loss | Balance sheet data(in billions of dollars) | Total EOP assets | Total EOP deposits | ($ in millions) | Timeshare segment note sale gains | Synthetic fuel earn-out payments (made) received, net | Loss on expected land sale | Gains on sales of real estate and other | Other note sale/repayment gains | Gains on sale/income on redemption of joint venture investments | Income from cost method joint ventures | $59 |


| Year Ended December 31, | 2018 | (in millions) | Net gains (losses) from(1): | Terminated hedges of foreign currency earnings | Current period yield adjustments | Principal source of earnings |


| (Dollars in millions) Cumulative Translation Adjustment$ UnfundedAdditionalMinimum Pension Liability$ Unrecognized Loss and Prior Service Cost, net of taxes$ Unrealized Gains (Losses) on Cash Flow Hedges$ Unrealized Losses on Investments$ Accumulated Other Comprehensive Income (Loss)$ | Balance at December 31, 2004 | Period change | Balance at December 31, 2005 | Period change | Pre-SFAS No. 158 balance at December 31, 2006 | Adjustments to apply SFAS No. 158 | Balance at December 31, 2006 |


| 2018 2017 2016 | December | September | June | March |


EQUITY COMPENSATION PLANS The Company measures compensation expense for share-based awards at fair value at the date of grant and recognizes compensation expense over the service period for awards expected to vest.
The majority of grants to retirement eligible recipients (age 55 with required years of service) are attributed to expense using the non-substantive vesting method and are fully expensed over a six month period following the date of grant.
In addition, the Company includes a forfeiture estimate in the amount of compensation expense being recognized based on an estimate of the number of outstanding awards expected to vest.
The Company’s equity compensation plans provide for grants of stock options, performance-based restricted stock units (“PBRSUs”) and non-performance-based restricted stock units (“RSUs”) and restricted stock awards (“RSAs”).
Common shares available for grant as of December 31, 2017, 2016 and 2015 were 11,685,090, 13,649,667 and 15,888,937, respectively.
The Company generally issues authorized but previously unissued shares to satisfy stock option exercises and stock award vestings.
The Company’s annual long-term incentive share-based compensation program is made up of 50% stock options and 50% PBRSUs.
The Company also periodically grants RSUs.
Total compensation expense related to all share-based compensation plans was $90 million ($62 million net of tax benefit), $86 million ($59 million net of tax benefit) and $78 million ($54 million net of tax benefit) for 2017, 2016 and 2015, respectively.
As of December 31, 2017, there was $141 million of total measured but unrecognized compensation expense related to non-vested share-based compensation arrangements granted under all of the Company’s plans.
That cost is expected to be recognized over a weighted-average period of 2.1 years.
Stock Options Stock options are granted to purchase shares of the Company’s stock at the average daily share price on the date of grant.
These options generally expire within ten years from the grant date.
The Company generally recognizes compensation expense for these awards on a straight-line basis over the three year vesting period.
As previously noted, stock option grants to retirement eligible recipients are attributed to expense using the non-substantive vesting method.
A summary of stock option activity and average exercise prices is as follows:


Results of operations for the 2018 acquisitions included sales of $365 and a net loss of $3, including intangibles amortization of $40 and restructuring expense of $3.
These results also included first year pretax acquisition accounting charges related to inventory and deferred revenue of $39 and $11, respectively, which are reported in Corporate and other.
See Note 18.
On April 28, 2017, the Company completed the acquisition of Pentair’s valves & controls business for $2.96 billion, net of cash acquired of $207, subject to certain post-closing adjustments.
This business, with annualized sales of approximately $1.4 billion, is a manufacturer of control, isolation and pressure relief valves and actuators, and complements the Valves, Actuators & Regulators product offering within Automation Solutions.
The Company recognized goodwill of $1.5 billion (none of which is expected to be tax deductible), and other identifiable intangible assets of $1.1 billion, primarily customer relationships and intellectual property with a weighted-average life of approximately 14 years.
The Company also acquired two smaller businesses in the Automation Solutions segment.
Total cash paid for all businesses was $3.0 billion, net of cash acquired.
The purchase price of the valves & controls business was allocated to assets and liabilities as follows.


| Coal Natural Gas Average Fuel  Cost | Cost | 2006 | 2005 | 2004 |


| December 31, 2015 December 31, 2014-1 | In millions of dollars, except ratios | Common Equity Tier 1 Capital | Tier 1 Capital | Total Capital (Tier 1 Capital + Tier 2 Capital)(2) | Total Risk-Weighted Assets | Common Equity Tier 1 Capital ratio-3(4) | Tier 1 Capital ratio-3(4) | Total Capital ratio-3(4) |


| Years ended December 31, | 2014 | Basic weighted-average shares outstanding | Effect of potential common stock: | Common stock awards | Senior subordinated convertible notes | Diluted weighted-average shares outstanding | 2014 | Beginning balance | Additions for tax positions of prior periods | Additions for tax positions of the current period | Additions due to acquisitions | Reductions for tax positions of prior periods | Reductions for tax positions of the current period | Settlements with taxing authorities | Lapse of applicable statute of limitations | Ending balance |


| Communities-1 Location Units RentableSquareFootage YearBuilt YearAcquired Occupancy-2 | Southern California | Alpine Country | Alpine Village | Anavia | Barkley, The-3(4) | Bonita Cedars | Camarillo Oaks | Camino Ruiz Square | Cielo -5 | Cambridge | Mesa Village | Parcwood-5 | Tierra del Sol/Norte | Regency at Encino | Valley Park-6 | Capri at Sunny Hills-6 | Wilshire Promenade | Montejo-6 | CBC Apartments | Chimney Sweep Apartments | 416 on Broadway | Hampton Court | Hampton Place | Devonshire | Huntington Breakers | Axis 2300 | Hillsborough Park | Trabuco Villas | Marbrisa | Pathways | Belmont Station | Bellerive | Bunker Hill | Cochran Apartments | Kings Road | Marbella, The | Park Place | Renaissance, The-5 | Santee Court | Santee Village | Windsor Court | Marina City Club-11 | Mirabella | Mira Monte | Hillcrest Park | Fairways-13 | Muse | Country Villas | Mission Hills | Mariners Place | Monterey Villas | Tierra Vista | Arbors Parc Rose-14 | Monterra del Mar | Monterra del Rey | Monterra del Sol | Villa Angelina-6 | As of December 31, 2011 | Apartment Units | Southern California | Northern California | Seattle Metro | Total |


| 2010 2009 2008 | Options Outstanding | Balance at beginning of year | Granted | Exercised | Lapsed or cancelled | Balance at end of year | Options exercisable at end of year | Weighted average fair value of options granted during the year |


(a) The deferred tax effect related to the enactment of a supplemental tax in the U. K.  increased the effective tax rate 7.0 percent in 2002.


Note 10.
Employee Benefit Plans Employee Stock Purchase Plan Under the Companys Employee Stock Purchase Plan (ESPP), employees are granted the right to purchase shares of common stock at a price per share that is 85% of the lesser of the fair market value of the shares at (1) the beginning of a rolling two year offering period or (2) the end of each semi-annual purchase period, subject to a plan limit on the number of shares that may be purchased in a purchase period.
On March 29, 2016, the Companys stockholders approved an amendment to the ESPP to increase the number of shares of common stock authorized for issuance under the plan by 5.0 million shares.
During fiscal 2016, 2015 and 2014, the Company issued 1.6 million, 1.7 million, and 1.8 million shares, respectively, under the ESPP at average per share prices of $37.77, $31.55 and $30.00, respectively.
As of October 31, 2016, 8.7 million shares of common stock were reserved for future issuance under the ESPP.
Equity Compensation Plans 2006 Employee Equity Incentive Plan.
On April 25, 2006, the Companys stockholders approved the 2006 Employee Equity Incentive Plan (2006 Employee Plan), which provides for the grant of incentive stock options, nonstatutory stock options, restricted stock awards, restricted stock unit awards, stock appreciation rights and other forms of equity compensation, including performance stock awards and performance cash awards, as determined by the plan administrator.
The terms and conditions of each type of award are set forth in the 2006 Employee Plan.
Options granted under this plan have a contractual term of seven years and generally vest over four years.
On March 29, 2016, the Company's stockholders approved an amendment to increase the number of shares of common stock reserved for future issuance under the 2006 Employee Plan by 3.8 million shares.
As of October 31, 2016, an aggregate of 6.3 million stock options and 4.0 million restricted stock units were outstanding, and 11.2 million shares were available for future issuance under the 2006 Employee Plan.2005 Non-Employee Directors Equity Incentive Plan.
On May 23, 2005, the Companys stockholders approved the 2005 Non-Employee Directors Equity Incentive Plan (the 2005 Directors Plan).
The 2005 Directors Plan provides for annual equity awards to non-employee directors in the form of stock options, restricted stock or a combination thereof.
The Companys stockholders have approved an aggregate of 0.8 million shares of common stock reserved under the 2005 Directors Plan.
As of October 31, 2016, the Company has issued an aggregate of 363,782 shares of restricted stock awards with an aggregate grant date fair value of approximately $11.5 million under the 2005 Directors Plan.
Restricted stock


Overall, billed business increased in 2017 compared to 2016.
U. S.  billed business increased 1 percent and non-U.
S.  billed business increased 12 percent.
See Tables 5 and 6 for more details on billed business performance.
The average discount rate was 2.43 percent, 2.45 percent and 2.46 percent for 2017, 2016 and 2015, respectively.
The decrease in the average discount rate in 2017 compared to 2016 primarily reflected rate pressure from merchant negotiations, including those resulting from the recent regulatory changes affecting competitor pricing in certain international markets, the continued growth of the OptBlue program, and changes in industry and geographic mix.
We expect the average discount rate will continue to decline over time due to a greater shift of existing merchants into OptBlue, merchant negotiations and competition, volume related pricing discounts, certain pricing initiatives mainly driven by pricing regulation (including regulation of competitors’ interchange rates) and other factors.
Net card fees increased in both periods.
The increase in 2017 was primarily driven by growth in the Platinum and Delta portfolios and growth in key international markets.
The increase in 2016 was primarily driven by growth in the Platinum, Gold and Delta portfolios.
Other fees and commissions increased in 2017 compared to 2016, and decreased in 2016 compared to 2015.
The increase in 2017 was primarily driven by an increase in delinquency fees due to a change in the late fee assessment date for certain U. S.  charge cards and an increase in foreign exchange conversion revenue.
The decrease in 2016 was primarily due to lower Costco-related fees, partially offset by an increase in delinquency and loyalty coalition-related fees.
Other revenues decreased in 2017 compared to 2016, and were relatively flat in 2016 compared to 2015.
The decrease in 2017 was primarily driven by prior-year revenues related to the Loyalty Edge business, which was sold in the fourth quarter of 2016, and a contractual payment from a GNS partner also in the prior year.2016 included the previously-mentioned contractual payment from a GNS partner and higher revenues from our Prepaid Services business compared to 2015, offset by lower revenues related to Costco, Loyalty Edge and the GBT JV transition services agreement.
Interest income increased in 2017 compared to 2016 and decreased in 2016 compared to 2015.
The increase in 2017 primarily reflected higher average Card Member loans and higher yields.
The growth in average Card Member loans was primarily driven by a mix shift over time towards non-cobrand lending products, where Card Members tend to revolve more of their loan balances.
The increase in yields was primarily driven by a greater percentage of loans at higher rate buckets, specific pricing actions, and increases in benchmark interest rates.
The decrease in 2016 was primarily driven by lower Costco cobrand loans and the associated interest income, partially offset by modestly higher yields and an increase in average Card Member loans across other lending products.
Interest expense increased in both periods.
The increase in 2017 was primarily driven by higher interest rates and higher average long-term debt.
The increase in 2016 was primarily driven by higher average customer deposit balances, partially offset by lower average long-term debt.


Actual returns exceeded our expected returns for 2010 which increased our estimates of total gross profits and decreased our estimate of future expected claims costs associated with the guaranteed minimum death and income benefit features of our variable annuity products, by establishing a new, higher starting point for the variable annuity account values used in estimating those items for future periods.
The expected rates of return in 2010 for some contract groups were based upon our maximum future rate of return under the reversion to the mean approach, as discussed below.
The overall increase in our estimate of total gross profits and decrease in our estimate of future expected claims costs results in a lower required rate of amortization and lower required reserve provisions, which are applied to all prior periods.
The resulting cumulative adjustment to prior amortization and reserve provisions was a $103 million benefit for 2010 as shown in the table above.
The $331 million of benefits for 2009 relating to the quarterly market performance adjustments is attributable to a similar impact on gross profits of market value increases in the underlying assets associated with our variable annuity products, reflecting financial market conditions during the period.
The benefit in 2009 is higher than that in 2010 due to a greater difference in 2009 between the actual rates of return and the expected rates of return, which are detailed further below.
Also, the $54 million decrease in amortization of deferred policy acquisition and other costs in 2009 is net of a $73 million charge to impair the entire remaining balance of valuation of business acquired, or VOBA, related to the variable annuity contracts acquired from Allstate in the second quarter of 2006.
The additional charge was required in the first quarter of 2009, as the declines in estimated future gross profits related to market performance caused the present value of estimated gross profits for these contracts to fall below zero.
Since the VOBA balance was completely amortized for these contracts, it cannot be reestablished for market value appreciation in subsequent periods.
As discussed and shown in the table above, results for both periods also include the impact of the annual reviews of the assumptions used in the reserves for the guaranteed minimum death and income benefit features of our variable annuity products and in our estimate of total gross profits used as a basis for amortizing deferred policy acquisition and other costs.2010 included $177 million of benefits from these annual reviews, primarily related to reductions in lapse rate assumptions and more favorable assumptions relating to fee income.2009 included $49 million of charges from these annual reviews, primarily related to reductions in the future rate of return assumptions applied to the underlying assets associated with our variable annuity products.
Partially offsetting the impact of the updated future rate of return assumptions for 2009 were benefits related to the impact of lower mortality and higher investment spread assumptions.
As mentioned above, we derive our near-term future rate of return assumptions using a reversion to the mean approach, a common industry practice.
Under this approach, we consider actual returns over a period of time and initially adjust future projected returns over a four year period so that the assets are projected to grow at the long-term expected rate of return for the entire period.
The near-term future


| Year Ended December 31, | 2012 | Water service | Residential | Commercial | Industrial | Public and other | Total water services | Wastewater services | Total |


| December 31 | Outstandings | (Dollars in millions) | California | Texas | Florida | New York | Georgia | Other U.S./Foreign | Total direct/indirect loans |


| Year ended December 31, | (Dollars in thousands) | Telephone | Data processing services | Client services | Tax credit fund amortization | Postage and supplies | Dues and publications | Net gain from note repurchases and termination of corresponding interest rate swaps -1 | Other | Total other noninterest expense |


OTHER COMMERCIAL COMMITMENTS
(1) Amounts committed are reported net of participations.
Additional information about the commercial commitments disclosed in this section is in Note 10 of the Notes to Consolidated Financial Statements included in this Form 10-K under Item 8.
Risk Management The global scope of our business activities requires that we balance what we perceive to be the primary risks in our businesses with a comprehensive and well-integrated risk management function.
The measurement, monitoring and mitigation of risks are essential to the financial performance and successful management of State Streets businesses.
These risks, if not effectively managed, can result in current losses to State Street as well as erosion of our capital and damage to our reputation.
Our systematic approach also allows for a more precise assessment of risks within a framework for evaluating opportunities for the prudent use of capital.
We have a disciplined approach to risk management that involves all levels of management.
The Board provides extensive review and oversight of State Streets overall risk management programs, including the approval of key risk management policies and the periodic review of State Streets key risk indicators.
These indicators are designed to identify major business activities of State Street with significant risk content, and to establish quantifiable thresholds for risk measurement.
Key risk indicators are reported regularly to the Executive Committee of the Board, and are reviewed periodically for appropriateness.
Modifications to the indicators are made to reflect changes in our business activities or refinements to existing measurements.
Enterprise Risk Management, or ERM, a dedicated corporate group, provides oversight, support and coordination across business units and is responsible for the
defined by FIN 46(R), as a result of the issuance of subordinated notes by the conduits to third-party investors, and we do not record these conduits in our consolidated financial statements.
At December 31, 2006 and 2005, total assets in unconsolidated conduits were $25.25 billion and $17.90 billion, respectively.
Our off-balance sheet commitments to these conduits are disclosed in Note 10.
Collateralized Debt Obligations: We manage a series of collateralized debt obligations, or CDOs.
 A CDO is a managed investment vehicle which purchases a portfolio of diversified highly-rated assets.
A CDO funds purchases through the issuance of several tranches of debt and equity, the repayment and return of which are linked to the performance of the assets in the CDO.
Typically, our involvement is as collateral manager.
We may also invest in a small percentage of the debt issued.
These entities typically meet the definition of a variable interest entity as defined by FIN 46(R).
We are not the primary beneficiary of these CDOs, as defined by FIN 46(R), and do not record these CDOs in our consolidated financial statements.
At December 31, 2006 and 2005, total assets in these CDOs were $3.48 billion and $2.73 billion, respectively.
During 2005, we acquired and transferred $60 million of investment securities from our available-forsale portfolio into a CDO.
This transfer, which was executed at fair market value in exchange for cash, was treated as a sale.
We did not acquire or transfer any investment securities to a CDO during 2006.
Note 12.
Shareholders Equity Treasury Stock: During the first quarter of 2006, we purchased 3 million shares of our common stock under a program authorized by our Board of Directors, or Board, in 2005.
On March 16, 2006, the Board authorized a new program for the purchase of up to 15 million shares of our common stock for general corporate purposes, including mitigating the dilutive impact of shares issued under employee benefit programs, and terminated the 2005 program.
Under this new program, we purchased 2.8 million shares of our common stock during 2006, and as of December 31, 2006, 12.2 million shares were available for purchase.
We utilize third-party broker-dealers to acquire common shares on the open market in the execution of our stock purchase program.
In addition, shares may be acquired for other deferred compensation plans, held by an external trustee, that are not part of the common stock purchase program.
As of December 31, 2006, on a cumulative basis, approximately 395,000 shares have been purchased and are held in trust.
These shares are recorded as treasury stock in our consolidated statement of condition.
During 2006, 2005 and 2004, we purchased and recorded as treasury stock a total of 5.8 million shares, 13.1 million shares and 4.1 million shares, respectively, at an average historical cost per share of $63, $51 and $43, respectively.
Accumulated Other Comprehensive (Loss) Income:


| For the year ended December 31, | 2009 | (in millions) | Fixed maturities, available-for-sale | Equity securities, available-for-sale | Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities |


| (in millions) 2007 2006 | Non-U.S. pension benefit plans | U.S. pension benefit plans |


| Year ended December 31, | 2011 | (Dollars in thousands) | Interest-earning assets: | Federal Reserve deposits, federal funds sold, securities purchased under agreements to resell and other short-term investment securities-1 | Available-for-sale securities: -2 | Taxable | Non-taxable -3 | Total loans, net of unearned income -4 | Total interest-earning assets | Cash and due from banks | Allowance for loan losses | Goodwill | Other assets -5 | Total assets | Funding sources: | Interest-bearing liabilities: | NOW deposits | Money market deposits | Money market deposits in foreign offices | Time deposits | Sweep deposits in foreign offices | Total interest-bearing deposits | Short-term borrowings | 5.375% Senior Notes | 3.875% Convertible Notes | Junior Subordinated Debentures | 5.70% Senior Note and 6.05% Subordinated Notes | Other long-term debt | Total interest-bearing liabilities | Portion of noninterest-bearing funding sources | Total funding sources | Noninterest-bearing funding sources: | Demand deposits | Other liabilities | SVBFG stockholders’ equity | Noncontrolling interests | Portion used to fund interest-earning assets | Total liabilities, noncontrolling interest, and SVBFG stockholders’ equity stockholders’ equity | Net interest income and margin | Total deposits | Reconciliation to reported net interest income: | Adjustment for tax-equivalent basis | Net interest income, as reported |


Proceeds from the Sale of Equity Securities.
From time to time, we raise funds through public offerings of our equity securities.
In addition, we receive proceeds from sales of our equity securities pursuant to our stock option and stock purchase plans.
For the year ended December 31, 2004, we received approximately $40.6 million in proceeds from sales of shares of our Class A common stock and the common stock of ATC Mexico pursuant to our stock option and stock purchase plans.
Financing Activities During the year ended December 31, 2004, we took several actions to increase our financial flexibility and reduce our interest costs.
New Credit Facility.
In May 2004, we refinanced our previous credit facility with a new $1.1 billion senior secured credit facility.
At closing, we received $685.5 million of net proceeds from the borrowings under the new facility, after deducting related expenses and fees, approximately $670.0 million of which we used to repay principal and interest under the previous credit facility.
We used the remaining net proceeds of $15.5 million for general corporate purposes, including the repurchase of other outstanding debt securities.
The new credit facility consists of the following: ?
$400.0 million in undrawn revolving loan commitments, against which approximately $19.3 million of undrawn letters of credit were outstanding at December 31, 2004, maturing on February 28, 2011; ?
a $300.0 million term loan A, which is fully drawn, maturing on February 28, 2011; and ?
a $398.0 million term loan B, which is fully drawn, maturing on August 31, 2011.
The new credit facility extends the previous credit facility maturity dates from 2007 to 2011 for a majority of the borrowings outstanding, subject to earlier maturity upon the occurrence of certain events described below, and allows us to use credit facility borrowings and internally generated funds to repurchase other indebtedness without additional lender approval.
The new credit facility is guaranteed by us and is secured by a pledge of substantially all of our assets.
The maturity date for term loan A and any outstanding revolving loans will be accelerated to August 15, 2008, and the maturity date for term loan B will be accelerated to October 31, 2008, if (1) on or prior to August 1, 2008, our 93?8% senior notes have not been (a) refinanced with parent company indebtedness having a maturity date of February 28, 2012 or later or with loans under the new credit facility, or (b) repaid, prepaid, redeemed, repurchased or otherwise retired, and (2) our consolidated leverage ratio (total parent company debt to annualized operating cash flow) at June 30, 2008 is greater than 4.50 to 1.00.
If this were to occur, the payments due in 2008 for term loan A and term loan B would be $225.0 million and $386.0 million, respectively.
Note Offerings.
During 2004, we raised approximately $1.1 billion in net proceeds from the sale of debt securities through institutional private placements as follows (in millions):


The Company finalized and completed a plan to restructure certain of R2’s historical activities.
As of the acquisition date the Company recorded a liability of approximately $798 in accordance with EITF Issue No.95-3, Recognition of Liabilities in Connection with a Purchase Business Combination, related to the termination of certain employees and loss related to the abandonment of certain lease space under this plan.
All amounts under this plan have been paid as of September 29, 2007.
The Company reduced goodwill related to the R2 acquisition in the amount of approximately $2,300 and $400 during the years ended September 27, 2008 and September 29, 2007, respectively.
The reduction in 2007 was primarily related to a change in the preliminary valuation of certain assets and liabilities acquired based on information received during the year.
The decrease in goodwill in 2008 was related to the reduction of an income tax liability.
The final purchase price allocations were completed and the adjustments did not have a material impact on the Company’s financial position or results of operation.
As part of the purchase price allocation, all intangible assets that were a part of the acquisition were identified and valued.
It was determined that only customer relationship, trade name, developed technology and know how and in-process research and development had separately identifiable values.
Customer relationship represents R2’s strong active customer base, dominant market position and strong partnership with several large companies.
Trade name represents the R2 product names that the Company intends to continue to use.
Order backlog consists of customer orders for which revenue has not yet been recognized.
Developed technology and know how represents currently marketable purchased products that the Company continues to resell as well as utilize to enhance and incorporate into the Company’s existing products.
The estimated $10,200 of purchase price allocated to in-process research and development projects primarily related to R2’s Digital CAD products.
The projects added direct digital algorithm capabilities as well as


| Qualified DefinedBenefit Pension Plans Retiree Medical andLife Insurance Plans | 2017 | Change in benefit obligation | Beginning balance | Service cost | Interest cost | Benefits paid | Actuarial losses (gains) | Changes in longevity assumptions(a) | Plan amendments and acquisitions(b) | Service cost related to discontinued operations | Medicare Part D subsidy | Participants’ contributions | Ending balance | Change in plan assets | Beginning balance at fair value | Actual return on plan assets | Benefits paid | Company contributions | Medicare Part D subsidy | Participants’ contributions | Ending balance at fair value | Unfunded status of the plans |


| Moody’s S&P Fitch | Ameren: | Issuer/corporate credit rating | Senior unsecured debt | Commercial paper | Ameren Missouri: | Issuer/corporate credit rating | Secured debt | Ameren Illinois: | Issuer/corporate credit rating | Secured debt | Senior unsecured debt | Genco: | Issuer/corporate credit rating | Senior unsecured debt |


Performance Share Units Under the 2005 ICP, the Company’s Executive Leadership Team may be awarded a target number of performance share units (‘‘PSUs’’).
PSUs will be earned only to the extent that the Company attains certain goals relating to the Company’s performance and relative total shareholder returns against peers over a three-year period.
The awards also have a three-year service condition with cliff vesting with an accelerated service condition based on age and length of service.
The actual number of PSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the target, if performance goals are significantly exceeded.
The value of each target PSU is equal to the value of one share of Ameriprise common stock.
The total amount of target PSUs outstanding at the end of December 31, 2016, 2015 and 2014 was 0.2 million.
The PSUs are liability awards.
During the years ended December 31, 2016, 2015 and 2014, the value of shares settled for PSU awards was $15 million, $27 million and $20 million, respectively.


In addition, we have defined contribution plans that are generally available to all U. S.  employees and agents.
Eligible participants could not contribute more than $16,500 of their compensation to the plans in 2009.
Effective January 1, 2006, we made several changes to the retirement programs.
In general, the pension and supplemental executive retirement plan benefit formulas were reduced, and the 401(k) matching contribution was increased.
Employees who were ages 47 or


| (Millions) 2017 2016 2015 | Other expenses: | Interest rate derivative contracts | Hedged items | Net hedge ineffectiveness (losses) gains |


| At December 31, | (Dollars in thousands) | Gross basis: | Beginning of period reserves | Incurred losses | Paid losses | End of period reserves | Net basis: | Beginning of period reserves | Incurred losses | Paid losses | End of period reserves |


| December 31, | 2012 | (Dollars in thousands) | Non-marketable securities (fair value accounting): | Venture capital and private equity fund investments -1 | Other venture capital investments -2 | Other investments | Non-marketable securities (equity method accounting): | Other investments | Low income housing tax credit funds | Non-marketable securities (cost method accounting): | Venture capital and private equity fund investments | Other investments | Total non-marketable securities | December 31, | 2012 | (Dollars in thousands) | SVB Strategic Investors Fund, LP | SVB Strategic Investors Fund II, LP | SVB Strategic Investors Fund III, LP | SVB Strategic Investors Fund IV, LP | Strategic Investors Fund V Funds | SVB Capital Preferred Return Fund, LP | SVB Capital—NT Growth Partners, LP | SVB Capital Partners II, LP | Other private equity fund | Total venture capital and private equity fund investments |


in still beverages.
The growth in sparkling beverages was led by a 5 percent increase in Trademark Sprite, a 4 percent increase in Trademark Fanta and a 3 percent increase in brand Coca-Cola.
Still beverage volume growth was led by packaged water and growth in teas and value-added dairy of 6 percent and 10 percent, respectively.
Chinas unit case volume grew 4 percent, led by 5 percent growth in brand Coca-Cola and 6 percent growth in Trademark Fanta.
India reported double-digit volume growth, and Japan reported a volume decline of 1 percent, reflecting 1 percent growth in sparkling beverages offset by a 1 percent decline in still beverages.
Unit case volume for Bottling Investments decreased 2 percent.
This decrease primarily reflects the deconsolidation of our bottling operations in Brazil during July 2013 as a result of their combination with an independent bottling partner.
The unfavorable impact of these transactions on the groups unit case volume results was partially offset by growth in other key markets, including China and India, where we own or otherwise consolidate bottling operations.
The Companys consolidated bottling operations accounted for 35 percent and 65 percent of the unit case volume in China and India, respectively.
Concentrate Sales Volume In 2015, worldwide concentrate sales volume and unit case volume both grew 2 percent compared to 2014.
After considering the impact of structural changes, concentrate sales volume grew 1 percent during the year ended December 31, 2015.
In 2014, worldwide concentrate sales volume and unit case volume both grew 2 percent compared to 2013.
After considering the impact of structural changes, concentrate sales volume grew 1 percent during the year ended December 31, 2014.
The differences between concentrate sales volume and unit case volume growth rates worldwide and for individual operating segments in 2015 and 2014 were primarily due to the timing of concentrate shipments and the impact of unit case volume from certain joint ventures in which the Company has an equity interest, but to which the Company does not sell concentrates, syrups, beverage bases or powders.


| Years Ended December 31, | (Dollars in millions) | 2013 | Attritional | Catastrophes | Total segment | 2012 | Attritional | Catastrophes | Total segment | 2011 | Attritional | Catastrophes | Total segment | Variance 2013/2012 | Attritional | Catastrophes | Total segment | Variance 2012/2011 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) |


| Debt securities — Auction-rate securities only | Student loan bonds | Balances at March 1, 2008 | Changes in unrealized losses in other comprehensive income | Purchases, sales and settlements, net | Interest received, net | Balances at February 28, 2009 | Changes in unrealized gains in other comprehensive income | Purchases, sales and settlements, net | Interest received, net | Balances at February 27, 2010 |


| Year Ended December 31, 2013 2012 2011 | Operating activities: | Net income | Net income items not affecting cash | Pension contributions | Changes in operating assets and liabilities, net | Net cash provided by operating activities | Net cash used in investing activities | Net cash provided by financing activities | Effect of exchange rate changes on cash | Net increase (decrease) in cash and cash equivalents | Cash and cash equivalents at beginning of the year | Cash and cash equivalents at end of the year |


| 2010 2011 2012 2013 2014 2015 | Loews Common Stock | S&P 500 Index | Loews Peer Group (a) |


Table of Contents Noninterest expense increased by $51.2 million in 2011, primarily due to an increase in incentive compensation and an increase in salaries and wages expenses.
The increase in incentive compensation expenses was due to our strong financial performance in 2011 as we exceeded our internal performance targets for the year.
The increase in salaries and wages was primarily due to an increase in the average number of FTE employees at GCB, which increased to 1,142 in 2011, compared to 1,046 in 2010, as well as from merit increases.2010 compared to 2009 Net interest income from our GCB decreased by $12.7 million in 2010, primarily due to a $45.1 million decrease in the FTP earned for deposits due to decreases in market interest rates and a $15.1 million decrease in loan interest income resulting mainly from a decrease in average loan balances.
These decreases were partially offset by a $36.7 million increase in the FTP earned for deposits due to significant deposit growth, as well as a $6.7 million decrease in interest expense from deposits resulting primarily from decreases in our deposit rates.
We had a provision for loan losses for GCB of $42.4 million in 2010, compared to a provision of $79.9 million in 2009.
The decrease in provision was primarily due to a decrease in net charge-offs as a result of an improvement in the overall credit quality of our clients for 2010.
Noninterest income increased by $16.7 million in 2010, primarily due to an increase in foreign exchange fees, credit card fees and deposit service charges.
The increase in foreign exchange fees was primarily due to improving business conditions for our clients, which has resulted in higher commissioned notional volumes.
Commissioned notional volumes increased to $6.7 billion in 2010, compared to $5.0 billion in 2009.
The increase in credit card fees was primarily due to the addition of new credit card clients, as well as an increase in client activity.
The increase in deposit service charges was primarily due to an increase in the volume of transactions as a result of deposit growth.
Noninterest expense increased by $65.9 million in 2010, primarily due to an increase in incentive compensation, salaries and wages and ESOP expenses.
The increase in incentive compensation and ESOP expenses was due to us exceeding our internal performance targets for 2010 as compared to our 2009, incentive compensation levels, which were at half of target levels as we did not achieve all of our internal performance targets for 2009.
The increase in salaries and wages was primarily due to an increase in the average number of FTE employees at GCB, which increased to 1,046 in 2010, compared to 999 in 2009, as well as from merit increases.


| (Amounts in millions) 2012 2011 | Cash and cash equivalents | Trade and other accounts receivable – net | Finance receivables – net | Contract receivables – net | Inventories – net | Other current assets | Total current assets | Notes payable | Accounts payable | Other current liabilities | Total current liabilities | Working capital |