Note 13—Retirement Plans: Defined Contribution Plans The Company sponsors several defined contribution plans, including the Leidos, Inc.  Retirement Plan which is both a 401(k) plan and an employee stock ownership plan, in which most employees are eligible to participate.
These plans allow eligible participants to contribute a portion of their income through payroll deductions and the Company may also make discretionary contributions.
Company contributions expensed for defined contribution plans were $81 million, $92 million and $95 million in fiscal 2014, 2013, and 2012, respectively.
At the end of fiscal 2014, the Company elected to decrease its discretionary employer match contribution percentage and also provided for an additional Company contribution to be given to all eligible employees, regardless of whether the employee participates in the 401(k) plan, payable at the end of the calendar year to all employees employed on the last day of the calendar year, with certain exceptions.
Deferred Compensation Plans The Company maintains two deferred compensation plans, the Keystaff Deferral Plan (KDP) and the Key Executive Stock Deferral Plan (KESDP), for the benefit of certain management or highly compensated employees or directors and allows eligible participants to elect to defer all or a portion of their annual bonus, sign-on bonus or certain other bonuses.
Directors
PART II acquisition.
The internal revenue contraction reflects a decline in our commercial and federal health business driven by lower hospital IT spending trends ($112 million), lower volume in engineering services for the U. S.  Government and commercial customers ($91 million) and the completion of energy design-build construction projects ($24 million).
Health and Engineering revenues increased $213 million, or 13%, for fiscal 2013 as compared to fiscal 2012.
This increase was primarily driven by revenues from acquired businesses, including the August 2012 acquisition of maxIT and the August 2011 acquisition of Vitalize.
Internal revenues grew 2%, reflecting increases in healthcare IT consulting services with commercial clients ($87 million), increased activity related to energy design-build construction projects ($27 million) and increased unit deliveries and related maintenance of our non-intrusive inspection engineering products ($13 million).
These increases were partially offset by lower volume in engineering services for U. S.  Government customers ($48 million) and program completions with federal health information technology customers, particularly with the DoD military health system ($47 million).
Health and Engineering operating income decreased $119 million, or 85%, for fiscal 2014 compared to fiscal 2013.
The decrease was primarily attributable to bad debt expense for certain receivables related to two energy design-build construction projects ($41 million), an impairment of intangible assets acquired from the fiscal 2011 acquisition of Reveal Imaging Technologies ($30 million), and an impairment of intangible assets acquired in connection with the fiscal year 2012 and 2013 acquisitions of Vitalize and maxIT ($19 million).
There was also an increase in net unfavorable change in contract estimates ($4 million) primarily related to increased expenses associated with a completion estimate for an energy design-build construction fixed price project and lower revenue volume.
Health and Engineering operating income remained relatively constant for fiscal 2013 as compared to fiscal 2012.
Operating income was favorably impacted primarily due to higher revenue volume, a reduction in research and development expense ($19 million) resulting from the advancement through the product development life cycle of new non-intrusive inspection system offerings, as well as the loss provision related to a data privacy litigation matter ($9 million) in the prior year period, which is discussed in Note 17 of the combined notes to the consolidated financial statements.
These increases were partially offset by a net unfavorable change in contract estimates ($11 million) primarily related to certain energy and construction projects compared to a net positive change in contract estimates ($3 million) in the prior year period, increased intangible asset amortization expense ($8 million), increased severance expense ($4 million), and costs related to exit a facility associated with a past acquisition ($3 million).


| 2018 2019 2020 2021 2022 Thereafter Total Fair Value | Debt: | Fixed Rate | Average Interest Rate | Variable Rate | Average Interest Rate |


| Year Ended December 31, | in billions | Balance, beginning of year | Net inflows/(outflows) Alternative investments | Equity | Fixed income | Total non-money market net inflows/(outflows) | Money markets | Total AUM net inflows/(outflows) | Other client assets net inflows/(outflows) | Total AUS net inflows/(outflows) | Net market appreciation/(depreciation) AUM | Other client assets | Total AUS net market appreciation/(depreciation) | Balance, end of year |


| Fiscal Years Ended | April 2,   2011 | (millions) | Net revenues: | Wholesale | Retail | Licensing | Total net revenues |


| 2011 2010 2009 | Ameren Missouri | Ameren Illinois | Genco(b) | Other(b)(c) | Ameren(b) |


Entergy Corporation and Subsidiaries Notes to Financial Statements 161 liability to $60 million, and recorded the $2.7 million difference as a credit to interest expense.
The $60 million remaining liability was eliminated upon payment of the cash portion of the purchase price.
As of December 31, 2016, Entergy Louisiana, in connection with the Waterford 3 lease obligation, had a future minimum lease payment (reflecting an interest rate of 8.09%) of $57.5 million, including $2.3 million in interest, due January 2017 that is recorded as long-term debt.
In February 2017 the leases were terminated and the leased assets were conveyed to Entergy Louisiana.
Grand Gulf Lease Obligations In 1988, in two separate but substantially identical transactions, System Energy sold and leased back undivided ownership interests in Grand Gulf for the aggregate sum of $500 million.
The initial term of the leases expired in July 2015.
System Energy renewed the leases for fair market value with renewal terms expiring in July 2036.
At the end of the new lease renewal terms, System Energy has the option to repurchase the leased interests in Grand Gulf or renew the leases at fair market value.
In the event that System Energy does not renew or purchase the interests, System Energy would surrender such interests and their associated entitlement of Grand Gulfs capacity and energy.
System Energy is required to report the sale-leaseback as a financing transaction in its financial statements.
For financial reporting purposes, System Energy expenses the interest portion of the lease obligation and the plant depreciation.
However, operating revenues include the recovery of the lease payments because the transactions are accounted for as a sale and leaseback for ratemaking purposes.
Consistent with a recommendation contained in a FERC audit report, System Energy initially recorded as a net regulatory asset the difference between the recovery of the lease payments and the amounts expensed for interest and depreciation and continues to record this difference as a regulatory asset or liability on an ongoing basis, resulting in a zero net balance for the regulatory asset at the end of the lease term.
The amount was a net regulatory liability of $55.6 million and $55.6 million as of December 31, 2016 and 2015, respectively.
As of December 31, 2016, System Energy, in connection with the Grand Gulf sale and leaseback transactions, had future minimum lease payments (reflecting an implicit rate of 5.13%) that are recorded as long-term debt, as follows:


| For the Years Ended December 31, Percent Increase (Decrease) | 2018 | ($ in millions) | Personnel | Professional fees | Data processing and telecommunications | Foreign exchange activity1 | Other | General and administrative expenses | Special Item2 | Adjusted general and administrative expenses (excluding Special Item)2 |


| 2016 $976 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total |


Application of New Accounting Standards.
In November 2005, the FASB issued FASB Staff Position (FSP) FAS 115-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments (FAS 115-1), which is effective for reporting periods beginning after December 15, 2005.
FAS 115-1 addresses the determination as to when an investment is considered impaired, whether the impairment is other than temporary and the measurement of an impairment loss.
FAS 115-1 also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses not recognized as other-than-temporary impairments.
The Company adopted FAS 115-1 prospectively effective January 1, 2006.
The Company believes that all unrealized losses in its investment portfolio are temporary in nature.


| (Losses) Earnings At December 31, | (in millions) | Currency translation adjustments | Pension and other benefits | Derivatives accounted for as hedges | Total accumulated other comprehensive losses |


| 2018 2017 2016 | Brent oil prices ($/Bbl)(1) | WTI oil prices ($/Bbl)(2) | Natural gas prices ($/mmBtu)(3) |


Property and equipment Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildingsup to 40 years; leasehold improvementsthe lesser of useful lives of assets or lease terms, which generally include option periods; and equipmentthree to 12 years.
Goodwill Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurant businesses.
The Companys goodwill primarily results from purchases of McDonalds restaurants from franchisees and ownership increases in international subsidiaries or affiliates, and it is generally assigned to the reporting unit expected to benefit from the synergies of the combination.
If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety.
If a restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the portion of the reporting unit (defined as each individual country).
In accordance with Statement of Financial Accounting Standards No.142, Goodwill and Intangible Assets, the annual goodwill impairment test, conducted in the fourth quarter, compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill.
If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting units goodwill and the carrying amount of goodwill.
The following table presents the 2008 activity in goodwill by segment:


Air Mobility sales declined by $535 million primarily due to C-130J deliveries (12 in 2006 compared to 15 in 2005) and lower volume on the C-5 program.
Combat Aircraft sales increased by $292 million mainly due to higher F-35 and F-22 volume, partially offset by reduced volume on F-16 programs.
Other Aeronautics programs sales increased by $83 million primarily due to higher volume in sustainment services activities.
Operating profit for the segment increased 21% in 2007 compared to 2006.
Operating profit increases in Combat Aircraft more than offset decreases in Other Aeronautics programs and Air Mobility.
Combat Aircraft operating profit increased $326 million mainly due to improved performance on F-22 and F-16 programs.
Air Mobility and Other Aeronautics programs declined $77 million due to lower operating profit in support and sustainment activities.
Operating profit for the segment increased 20% in 2006 compared to 2005.
Operating profit increased in both Combat Aircraft and Air Mobility.
Combat Aircraft increased $114 million, mainly due to higher volume on the F-35 and F-22 programs, and improved performance on F-16 programs.
The improvement for the year was also attributable in part to the fact that in 2005, operating profit included a reduction in earnings on the F-35 program.
Air Mobility operating profit increased $84 million, mainly due to improved performance on C-130J sustainment activities in 2006.
Backlog decreased in 2007 as compared to 2006 primarily as a result of sales volume on the F-35 program.
This decrease was offset partially by increased orders on the F-22 and C-130J programs.


| 2016 2015 2014 | Current | United States | State and local | International | 160,000 | Deferred | United States | State and local | International | -662 | Total income taxes |


| Year Ended December 31 | $ in millions | Segment operating income | CAS pension expense | Less: FAS pension expense | Net FAS/CAS pension adjustment | Unallocated corporate expenses | Other | Total operating income |


| July 2, 2004 June 27, 2003 | Carrying amount | (in millions) | Cash equivalents | Short-term investments | 8.0% senior subordinated notes, due 2009 | Senior Credit Facilities: | Libor plus 2% Term Loan B | Foreign currency forward exchange contracts -1 |


| Year EndedDecember 31, Seven MonthsEndedDecember 31, 2016 Year EndedMay 31, 2016 | 2018 | Cash flows from operating activities: | Net income | Adjustments to reconcile net income to net cash provided by operating activities: | Depreciation and amortization of property and equipment | Amortization of acquired intangibles | Share-based compensation expense | Provision for operating losses and bad debts | Amortization of capitalized customer acquisition costs | Deferred income taxes | Gain on sale of investments | Other, net | Changes in operating assets and liabilities, net of the effects of business combinations: | Accounts receivable | Settlement processing assets and obligations, net | Prepaid expenses and other assets | Accounts payable and other liabilities | Net cash provided by operating activities | Cash flows from investing activities: | Business combinations and other acquisitions, net of cash acquired | Capital expenditures | Net proceeds from sale of investments | Net proceeds from sales of property and equipment | Other, net | Net cash used in investing activities | Cash flows from financing activities: | Net proceeds from (repayments of) settlement lines of credit | Proceeds from long-term debt | Repayments of long-term debt | Payment of debt issuance costs | Repurchase of common stock | Proceeds from stock issued under share-based compensation plans | Common stock repurchased - share-based compensation plans | Purchase of subsidiary shares from noncontrolling interest | Proceeds from sale of subsidiary shares to noncontrolling interest | Distributions to noncontrolling interests | Dividends paid | Net cash provided by (used in) financing activities | Effect of exchange rate changes on cash | Increase (decrease) in cash and cash equivalents | Cash and cash equivalents, beginning of the period | Cash and cash equivalents, end of the period |


| For the year ended December 31, | 2012 | (in millions) | Premiums and other considerations: | Direct | Assumed | Ceded | Net premiums and other considerations | Benefits, claims and settlement expenses: | Direct | Assumed | Ceded | Net benefits, claims and settlement expenses |


| 2013 2012 2011 | Sales | Operating income |


In March 2014, the Company issued $1.0 billion in aggregate principal amount of 3.50% senior unsecured and unsubordinated notes maturing in March 2024.
During 2014, the Company repaid $1.0 billion of 3.50% notes at maturity For more information on Company’s borrowings, see Note 12, Borrowings, in the notes to the consolidated financial statements beginning on page F-1 of this Form 10-K.


| Payment due by period | (thousands) | Contractual obligations: | Operating leases (a) | Debt obligations | Interest payments associated with debt obligations | Deferred compensation plan(b) | Pension funding(c) | Purchase Orders (d) | Total |


Segment Expenses.
Commission and brokerage expenses increased by 7.0% to $350.6 million in 2012 compared to $327.8 million in 2011.
These variances were primarily due to the increase in premiums earned and the effect on commissions resulting from the non-renewal of a Florida quota share contract.
Segment other underwriting expenses increased to $44.8 million in 2012 from $39.3 million in 2011.
These increases were primarily due to higher share-based compensation and employee benefit plan expenses.
Commission and brokerage expenses decreased by 6.7% to $327.8 million in 2011 compared to $351.6 million in 2010, primarily due to the decline in premiums earned and a shift in the mix of business.
Segment other underwriting expenses in 2011 decreased slightly to $39.3 million from $42.5 million in 2010.  International.


| 2006 | As Reported | Held | (Dollars in millions) | Residential mortgage | Credit card – domestic | Credit card – foreign | Home equity lines | Direct/Indirect consumer | Other consumer | Total consumer |


| (Dollars in millions) 2004 2003 | Service charges | Investment and brokerage services | Mortgage banking income | Investment banking income | Equity investment gains | Card income | Trading account profits | Other income | Total noninterest income |


| Years ended December 31 (dollars in millions) 2003 2002 | Balance at beginning of year | Expense | Claims settled | Customer warranty waiver -1 | Balance at end of year |


| Years Ended December 31, | 2007 | Current | (Dollars in millions) | Attritional | Catastrophes | Total segment | Loss ratio | (Some amounts may not reconcile due to rounding.) |


Stock Performance Graph The following stock performance graph and related information shall not be deemed “soliciting material” or “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filings under the Securities Act of 1933 or the Exchange Act, each as amended, except to the extent that we specifically incorporate it by reference into such filing.
The following stock performance graph compares our cumulative total shareholder return on an annual basis on our common stock with the cumulative total return on the Standard and Poor’s 500 Stock Index and the AMEX Airline Index from December 9, 2013 (the first trading day of AAG Common Stock) through December 31, 2014.
The comparison assumes $100 was invested on December 9, 2013 in AAG Common Stock and in each of the foregoing indices and assumes reinvestment of dividends.
The stock performance shown on the graph below represents historical stock performance and is not necessarily indicative of future stock price performance.


| Preferred Stock Common Stock | Issued | 2005: | Balance at January 1, 2005 | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2005 | 2006: | Grants of restricted stock | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2006 | 2007: | Grants of restricted stock | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2007 |


| Amount (In Millions) | 2010 net revenue | Retail electric price | Volume/weather | Fuel recovery | Transmission revenue | Other | 2011 net revenue |


will no longer be significant contributors to business operating results, while expenses should also decline significantly reflecting the reduced level of operations.
Operating earnings will primarily consist of retail forestland and real estate sales of remaining acreage.
Specialty Businesses and Other The Specialty Businesses and Other segment includes the results of the Arizona Chemical business and certain divested businesses whose results are included in this segment for periods prior to their sale or closure.
This segments 2006 net sales increased 2% from 2005, but declined 17% from 2004.
Operating profits in 2006 were up substantially from both 2005 and 2004.
The decline in sales compared with 2004 principally reflects declining contributions from businesses sold or closed.


| December 31, | 2012 | (millions) | Equity Method Investments | AMPCO | Alba Plant | CONE | Other | Total Equity Method Investments |


| Years Ended December 31, | 2015 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Operating earnings |


| Millions 2010 2009 2008 | Stock-based compensation, before tax: | Stock options | Retention awards | Total stock-based compensation, before tax | Total stock-based compensation, after tax | Excess tax benefits from equity compensation plans |


| Year Ended December 31, Change from 2008 to 2009 Change from 2009 to 2010 | 2008 | (In thousands, except percentage changes) | Sales and marketing | Product development | General and administrative | Provision for transaction and loan losses | Amortization of acquired intangible assets | Restructuring | Interest and other income (expense), net | Provision for income taxes |


| 2007 2006 2005 | Weighted average exercise price per share | Expected annual dividends per share | Expected life in years | Expected volatility | Risk-free interest rate | Weighted average grant date fair value of stock option awards granted |


Consumer & Business Banking
(1) For presentation purposes, in segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets to match liabilities.
As a result, total earning assets and total assets of the businesses may not equal total CBB.
n/m = not meaningful CBB, which is comprised of Deposits, Card Services and Business Banking, offers a diversified range of credit, banking and investment products and services to consumers and businesses.
Our customers and clients have access to a franchise network that stretches coast to coast through 32 states and the District of Columbia.
The franchise network includes approximately 5,500 banking centers, 16,300 ATMs, nationwide call centers, and online and mobile platforms.
The Federal Reserve adopted a final rule with respect to the Durbin Amendment, which became effective October 1, 2011, that established the maximum allowable interchange fees a bank can receive for a debit card transaction.
The interchange fee rules resulted in a reduction of debit card revenue of approximately $1.7 billion in 2012 compared to a $430 million reduction in 2011.
For more information on the Durbin Amendment and the final interchange rules, see Regulatory Matters on page 60.
CBB Results Net income for CBB decreased $2.1 billion to $5.3 billion in 2012 compared to 2011 primarily due to lower revenue and higher provision for credit losses, partially offset by lower noninterest expense.
Net interest income decreased $2.3 billion to $19.1 billion due to lower average loan balances primarily in Card Services as well as compressed deposit spreads due to the continued low rate environment.
Noninterest income decreased $1.6 billion to $9.9 billion primarily due to a decline in Card Services.
The provision for credit losses increased $451 million to $3.9 billion with the increase largely in Card Services.
Noninterest expense decreased $926 million to $16.8 billion primarily due to lower FDIC and operating expenses, partially offset by an increase in litigation expense.
The return on average economic capital decreased primarily due to lower net income.
For more information regarding economic capital, see Supplemental Financial Data on page 31.
Goodwill is reviewed annually during the fourth quarter for impairment.
In addition, the Company performs an impairment analysis of other intangible assets based on the occurrence of other factors.
Such factors include, but are not limited to, signifi- cant changes in membership, state funding, medical contracts and provider networks and contracts.
An impairment loss is recognized if the carrying value of intangible assets exceeds the implied fair value.
The Company did not recognize any impairment losses for the periods presented.
Medical Claims Liabilities Medical services costs include claims paid, claims reported but not yet paid (inventory), estimates for claims incurred but not yet received (IBNR) and estimates for the costs necessary to process unpaid claims.
The estimates of medical claims liabilities are developed using standard actuarial methods based upon historical data for payment patterns, cost trends, product mix, seasonality, utilization of healthcare services and other relevant factors including product changes.
These estimates are continually reviewed and adjustments, if necessary, are reflected in the period known.
Management did not change actuarial methods during the years presented.
Management believes the amount of medical claims payable is reasonable and adequate to cover the Companys liability for unpaid claims as of December 31, 2005; however, actual claim payments may differ from established estimates.
Revenue Recognition The majority of the Companys Medicaid Managed Care premium revenue is received monthly based on fixed rates per member as determined by state contracts.
Some contracts allow for additional premium related to certain supplemental services provided such as maternity deliveries.
Revenue is recognized as earned over the covered period of services.
Revenues are recorded based on membership and eligibility data provided by the states, which may be adjusted by the states for updates to this membership and eligibility data.
These adjustments are immaterial in relation to total revenue recorded and are reflected in the period known.
Premiums collected in advance are recorded as unearned revenue.
The Specialty Services segment generates revenue under contracts with state and local government entities, our health plans and third-party customers.
Revenues for services are recognized when the services are provided or as ratably earned over the covered period of services.
For performance-based contracts, the Company does not recognize revenue subject to refund until data is sufficient to measure performance.
Such amounts are recorded as unearned revenue.
Revenues due to the Company are recorded as premium and related receivables and recorded net of an allowance for uncollectible accounts based on historical trends and managements judgment on the collectibility of these accounts.
Activity in the allowance for uncollectible accounts for the years ended December 31 is summarized below:


| Year Ended December 31, | (dollars in millions) | Operating Data: | Net interest income | Noninterest income | Total revenue | Provision for credit losses | Noninterest expense | Noninterest expense, excluding goodwill impairment-1 | Noninterest expense, excluding goodwill impairment, restructuring charges and special items-1 | Income (loss) before income tax expense (benefit) | Income tax expense (benefit) | Net income (loss) | Net income, excluding goodwill impairment-1 | Net income, excluding goodwill impairment, restructuring charges and special items-1 | Return on average tangible common equity-1 | Return on average tangible common equity, excluding goodwill impairment-1 | Return on average tangible common equity, excluding goodwill impairment, restructuring charges and special items-1 | Successor 2010 | Interest rate swaps | Embedded derivatives from convertible senior notes | $-- | Successor 2010 | Charter Holdings debt notes repurchases / exchanges | Charter convertible note repurchases / exchanges | CCH II tender offer | CCO Holdings debt notes repurchases / exchanges | Charter Operating debt notes repurchases | Charter Operating credit amendment / prepayments | $-85 |


Management’s Discussion and Analysis of Financial Condition and Results of Operations – (continued) (Amounts in Millions, Except Per Share Amounts) Additionally, we performed a sensitivity analysis and reviewed the carrying values compared to the high end and low end of the valuation range.
The table below displays the range of the sensitivity analysis for each reporting unit tested in the 2015 and 2014 annual impairment tests.
For both the 2015 and 2014 tests, using the low end of the valuation range, there were no reporting units whose fair value exceeded its carrying value by less than 20%.


| Net Sales Fiscal Year | (dollars in millions; NM - Not Meaningful) | Cardiac and Vascular Group | Minimally Invasive Therapies Group-1 | Restorative Therapies Group | Diabetes Group | Total Net Sales | Fiscal Year | (in millions) | Provision for income taxes | Income from operations before taxes | Effective tax rate | Non-GAAP provision for income taxes | Non-GAAP income from operations before taxes | Non-GAAP Nominal Tax Rate | Difference between the effective tax rate and Non-GAAP Nominal Tax Rate | Rating for Fiscal Year Ended-1 | April 29, 2016 | Standard & Poor's (S&P) Ratings Services | Long-term debt | Short-term debt | Moody's Investors Service (Moody's) | Long-term debt | Short-term debt | Maturity by Fiscal Year | (in millions) | Contractual obligations related to off-balance sheet arrangements: | Operating leases-1 | Commitments to fund minority investments/contingent acquisition consideration-2 | Interest payments-3 | Other-4 | Contractual obligations related to off-balance sheet arrangements subtotal | Contractual obligations reflected in the balance sheet: | Long-term debt, including current portion-5 | Capital leases | Contractual obligations reflected in the balance sheet subtotal | Total contractual obligations |


Recoverability of intangible assets with finite useful lives is assessed in the same manner as property, plant and equipment as described above.
Income Taxes: For purposes of the Companys Consolidated Financial Statements for periods prior to the Spin-off, income tax expense has been recorded as if the Company filed tax returns on a stand-alone basis separate from Ingersoll Rand.
This separate return methodology applies the accounting guidance for income taxes to the stand-alone financial statements as if the Company was a stand-alone enterprise for the periods prior to the Spin-off.
Therefore, cash tax payments and items of current and deferred taxes may not be reflective of the Companys actual tax balances prior to or subsequent to the Spin-off.
Cash paid for income taxes for the year ended December 31, 2015 was $80.6 million.
The income tax accounts reflected in the Consolidated Balance Sheets as of December 31, 2015 and 2014 include income taxes payable and deferred taxes allocated to the Company at the time of the Spin-off.
The calculation of the Companys income taxes involves considerable judgment and the use of both estimates and allocations.
Deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities, applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse.
The Company recognizes future tax benefits, such as net operating losses and tax credits, to the extent that realizing these benefits is considered in its judgment to be more likely than not.
The Company regularly reviews the recoverability of its deferred tax assets considering its historic profitability, projected future taxable income, timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies.
Where appropriate, the Company records a valuation allowance with respect to a future tax benefit.
Product Warranties: Standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience.
The Company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims, or as new information becomes available.
Principal Financial Group, Inc.  Notes to Consolidated Financial Statements  (continued) 1.
Nature of Operations and Significant Accounting Policies  (continued) Goodwill and Other Intangibles Goodwill and other intangible assets include the cost of acquired subsidiaries in excess of the fair value of the net tangible assets recorded in connection with acquisitions.
Goodwill and indefinite-lived intangible assets are not amortized.
Rather, they are tested for impairment during the fourth quarter each year, or more frequently if events or changes in circumstances indicate that the asset might be impaired.
Goodwill is tested at the reporting unit level to which it was assigned.
A reporting unit is an operating segment or a business one level below that operating segment, if financial information is prepared and regularly reviewed by management at that level.
Once goodwill has been assigned to a reporting unit, it is no longer associated with a particular acquisition; therefore, all of the activities within a reporting unit, whether acquired or organically grown, are available to support the goodwill value.
Impairment testing for indefinite-lived intangible assets consists of a comparison of the fair value of the intangible asset with its carrying value.
Intangible assets with a finite useful life are amortized as related benefits emerge and are reviewed periodically for indicators of impairment in value.
If facts and circumstances suggest possible impairment, the sum of the estimated undiscounted future cash flows expected to result from the use of the asset is compared to the current carrying value of the asset.
If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized for the excess of the carrying amount of assets over their fair value.
Earnings Per Common Share Basic earnings per common share is calculated by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period and excludes the dilutive effect of equity awards.
Diluted earnings per common share reflects the potential dilution that could occur if dilutive securities, such as options and non-vested stock grants, were exercised or resulted in the issuance of common stock.2.


There were no realized gains or losses from sales of available-for-sale marketable securities.
Gains and losses are determined by specific identification.
Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the securitys maturity date.
The aggregate unrealized gains and losses on available-for-sale securities, net of tax effects, are classified in AOCI within stockholders equity.
Scheduled maturities of our marketable securities are as follows:


| December 31 2008 2007 | (In millions) | Gross Case Reserves | Gross IBNR Reserves | Total Gross Carried Claim and Claim Adjustment Expense Reserves | Net Case Reserves | Net IBNR Reserves | Total Net Carried Claim and Claim Adjustment Expense Reserves |


| Amount (In Millions) | 2009 net revenue | Net wholesale revenue | Volume/weather | Rough production cost equalization | Retail electric price | Securitization transition charge | Purchased power capacity | Other | 2010 net revenue |


| (in millions) Premiums and Other Considerations Net Investment Income Net Realized Capital Gains (Losses) Total Revenues Operating Income (Loss) | 2005 | Life insurance | Home service | Group life/health | Payout annuities(a) | Individual fixed and runoff annuities | Total | Percentage Increase/(Decrease) 2007 vs. 2006: | Life insurance | Home service | Group life/health | Payout annuities | Individual fixed and runoff annuities | Total | Percentage Increase/(Decrease) 2006 vs. 2005: | Life insurance | Home service | Group life/health | Payout annuities | Individual fixed and runoff annuities | Total |


| Net Investment Impact on Consolidated Equity of a 10% Decreasein Foreign Currency | (millions of dollars) | Euro | Norwegian Krone | Australian Dollar | Swedish Krona | Danish Krone |


Statutory Net Income and Surplus Prudential Financial’s U. S.  insurance subsidiaries are required to prepare statutory financial statements in accordance with statutory accounting practices prescribed or permitted by the insurance department of the state of domicile.
Statutory accounting practices primarily differ from U. S.  GAAP by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions as well as valuing investments and certain assets and accounting for deferred taxes on a different basis.
Statutory net income of Prudential Insurance amounted to $2,170 million, $1,878 million and $1,231 million for the years ended December 31, 2005, 2004 and 2003, respectively.
Statutory capital and surplus of Prudential Insurance amounted to $7,065 million and $8,420 million at December 31, 2005 and 2004, respectively.14.


| 2017 $942 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total |


| (in thousands) 2007 2006 | Commercial Risk-based | Commercial Fee-based | Total Commercial | Medicare Advantage | Medicaid | Standardized Medicare Supplement | Total Public and Senior | Total Health Care Services Medical Benefits |


Commitments Leases In accordance with industry practice, certain of the Company’s income from lease agreements with retail tenants are contingent upon the level of the tenants’ sales revenues.
Additionally, the Company, as lessee, has entered into various lease and sublease agreements for office space, data processing and other equipment.
Future minimum rental and sublease income, and minimum gross rental payments relating to these lease agreements are as follows:


We have a number of facilities that contain varying amounts of asbestos in certain locations within the facilities.
Our asbestos management program is compliant with current applicable regulations.
Current regulations require that we handle or dispose of asbestos in a special manner if such facilities undergo major renovations or are demolished.
Plans associated with the closure of a manufacturing facility under the Next Century program may require the removal of asbestos.
The estimated liability associated with the possible removal of asbestos from the facility is not material and is included in our estimates.
With regard to other facilities, we believe we do not have sufficient information to estimate the fair value of any asset retirement obligations related to those facilities.
We cannot specify the settlement date or range of potential settlement dates and, therefore, sufficient information is not available to apply an expected present value technique.
We expect to maintain the facilities with repairs and maintenance activities that would not involve or require the removal of asbestos.
As of December 31, 2010, certain real estate associated with the closure of facilities under the global supply chain transformation program was being held for sale.
We are not aware of any significant obligations related to the environmental remediation of these facilities which have not been reflected in our current estimates.


The Company held 98% and 100% of its money market mutual fund balances in various funds of a single issuer as of December 31, 2012 and December 31, 2011, respectively.
SHORT-TERM INVESTMENTS: Short-term investments consist primarily of deposits held by certain foreign subsidiaries of the Company with original maturities of three months to one year.
The Company considers investments backed by government agencies or financial institutions with maturities of less than one year to be highly liquid and classifies such investments as short-term investments.
Short-term investments are recorded at fair value.
The Company uses the specific identification method to determine the realized gain or loss upon the sale of such securities.
The Company is averse to principal loss and seeks to preserve invested funds by limiting default risk, market risk and reinvestment risk by placing its investments with high-quality credit issuers.
PROPERTY AND EQUIPMENT: Property and equipment is stated at cost.
Depreciation is computed on the straight-line method over the estimated useful lives of the various classes of assets, which range from one to 40 years.
Repairs and maintenance are charged to expense as incurred.
Gains or losses from the sale or retirement of property and equipment are included in operating income.
RESEARCH AND DEVELOPMENT COSTS: Research and development costs, other than certain capitalized software development costs, are expensed as incurred.


| Favorable/(Unfavorable) | Years ended December 31, | In millions | Power products | Power systems | Alternators | Power solutions | Total sales |


| 2008 2007 | In millions of dollars | Carrying amount reported on the Consolidated Balance Sheet | Aggregate unpaid principal balance in excess of fair value | Balance on non-accrual loans or loans more than 90 days past due | Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days pastdue |


The Business Banking segment provides deposit, lending, cash management and other financial services to small businesses and professionals through the Companys banking office network and several other delivery channels, including business banking centers, telephone banking, Internet banking and automated teller machines.
The Commercial Banking segment provides a wide range of credit products and banking services to middle-market and large commercial customers, mainly within the markets the Company serves.
Among the services provided by this segment are commercial lending and leasing, letters of credit, deposit products and cash management services.
The Commercial Real Estate segment provides credit services which are secured by various types of multifamily residential and commercial real estate and deposit services to its customers.
Activities of this segment include the origination, sales and servicing of commercial real estate loans.
Commercial real estate loans held for sale are included in the Commercial Real Estate Segment.
The Discretionary Portfolio segment includes securities; residential real estate loans and other assets; short-term and long-term borrowed funds; brokered deposits; and Cayman Islands branch deposits.
This segment also provides foreign exchange services to customers.
Residential real estate loans obtained in the Hudson City acquisition on November 1, 2015 are included in this segment.
The Residential Mortgage Banking segment originates and services residential real estate loans for consumers and sells substantially all of those loans in the secondary market to investors or to the Discretionary Portfolio segment.
The segment periodically purchases servicing rights to loans that have been originated by other entities.
Residential real estate loans held for sale are included in the Residential Mortgage Banking segment.
The Retail Banking segment offers a variety of services to consumers through several delivery channels that include banking offices, automated teller machines, and telephone, mobile and Internet banking.
Consumer loans and deposits obtained in the acquisition of Hudson City have been included in this segment.
The All Other category includes other operating activities of the Company that are not directly attributable to the reported segments; the difference between the provision for credit losses and the calculated provision allocated to the reportable segments; goodwill and core deposit and other intangible assets resulting from acquisitions of financial institutions; merger-related gains and expenses resulting from acquisitions; the net impact of the Companys internal funds transfer pricing methodology; eliminations of transactions between reportable segments; certain nonrecurring transactions; the residual effects of unallocated support systems and general and administrative expenses; and the impact of interest rate risk management strategies.
The amount of intersegment activity eliminated in arriving at consolidated totals was included in the All Other category as follows:


Indian Papers net sales were $178 million in 2014, $185 million ($174 million excluding excise duties which were included in net sales in 2013 and prior periods) in 2013 and $185 million ($178 million excluding excise duties) in 2012.
Operating profits were $8 million (a loss of $12 million excluding a gain related to the resolution of a legal contingency) in 2014, a loss of $145 million (a loss of $22 million excluding goodwill and trade name impairment charges) in 2013 and a loss of $16 million in 2012.
Average sales price realizations improved in 2014 compared with 2013 due to the impact of price increases implemented in 2013.
Sales volumes were flat, reflecting weak economic conditions.
Input costs were higher, primarily for wood.
Operating costs and planned maintenance downtime costs were lower in 2014.
Looking ahead to the first quarter of 2015, sales volumes are expected to be seasonally higher.
Average sales price realizations are expected to decrease due to competitive pressures.


12.
Borrowings Short-Term Borrowings 2015 Revolving Credit Facility.
In March 2011, the Company entered into a five-year $3.5 billion unsecured revolving credit facility, which was amended in 2014, 2013 and 2012.
In April 2015, the Company entered into a five-year $3.5 billion unsecured revolving credit facility, which was amended in 2014, 2013 and 2012.
The 2015 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, increasing the overall size of the 2015 credit facility to an aggregate principal amount not to exceed $5.0 billion.
Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread.
The 2015 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2015.
The 2015 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities.
At December 31, 2015, the Company had no amount outstanding under the 2015 credit facility.
Commercial Paper Program.
On October 14, 2009, BlackRock established a commercial paper program (the CP Program) under which the Company could issue unsecured commercial paper notes (the CP Notes) on a private placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion as amended in April 2015.
The CP Program is currently supported by the 2015 credit facility.
At December 31, 2015, BlackRock had no CP Notes outstanding Long-Term Borrowings The carrying value and fair value of long-term borrowings estimated using market prices and foreign exchange rates at December 31, 2015 included the following:


| Year EndedDecember 31, 2017 Seven Months Ended December 31, 2016 Year Ended May 31, | 2016 | (in thousands) | Revenues-1: | North America | Europe | Asia-Pacific | Consolidated revenues | Operating income (loss)(1): | North America | Europe | Asia-Pacific | Corporate-2 | Consolidated operating income | Depreciation and amortization-1: | North America | Europe | Asia-Pacific | Corporate | Consolidated depreciation and amortization |


| Severance/Leases Litigation Other TotalSpecial Charge | Balance at December 31, 2002 | Special Charges | Payments | Balance at December 31, 2003 | Special Charges | Payments | Balance at December 31, 2004 | Special Charges | Payments | Balance at December 31, 2005 |


| December 31, 2012 | 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 |


| December 31,(in dollars) 2013 2014 2015 2016 2017 2018 | JPMorgan Chase | KBW Bank Index | S&P Financial Index | S&P 500 Index |


| 2008 2007 2006 | Unrealized losses on available-for-sale securities | Unrealized gains on derivative instruments | Cumulative foreign currency translation | Accumulated other comprehensive income |


| Years Ended December 31, | 2015 | (in millions, except per share data) | Income Statement Data: | Total net revenues | Total expenses | Income from continuing operations | Loss from discontinued operations, net of tax | Net income | Less: Net income (loss) attributable to noncontrolling interests | Net income attributable to Ameriprise Financial | Basic | Income from continuing operations | Loss from discontinued operations | Net income | Diluted | Income from continuing operations | Loss from discontinued operations | Net income | Cash Dividends Declared Per Common Share | December 31, | 2015 | (in millions) | Balance Sheet Data: | Investments-1 | Separate account assets | Total assets | Policyholder account balances, future policy benefits and claims | Separate account liabilities | Customer deposits | Long-term debt-1 | Short-term borrowings | Total liabilities | Total Ameriprise Financial, Inc. shareholders’ equity | Noncontrolling interests’ equity |


| (In Thousands) | 2004 | 2005 | 2006 | 2007 | 2008 |


| Balance as of January 1, 2009 $540 | Warranty expense | Warranty claims | Balance as of December 31, 2009 | Warranty expense | Warranty claims | Business acquisitions | Balance as of December 31, 2010 |


| Years Ended December 31, 2012/2011 2011/2010 | (Dollarsin millions) | Gross written premiums | Net written premiums | Premiums earned | Incurred losses and LAE | Commission and brokerage | Other underwriting expenses | Underwriting gain (loss) | Point Chg | Loss ratio | Commission and brokerage ratio | Other underwriting expense ratio | Combined ratio | (Some amounts may not reconcile due to rounding.) |


| Defined benefit pension plans (a)> | U.S. | As of December 31, (in millions) | Change in benefit obligation | Benefit obligation at beginning of year | Benefits earned during the year | Interest cost on benefit obligations | Plan amendments | Employee contributions | Actuarial gain (loss) | Benefits paid | Curtailment gain | Settlement gain | Special termination benefits | Foreign exchange impact and other | Benefit obligation at end of year | Change in plan assets | Fair value of plan assets at beginning of year | Actual return on plan assets | Firm contributions | Settlement payments | Benefits paid | Foreign exchange impact and other | Fair value of plan assets at end of year | Reconciliation of funded status | Funded status | Unrecognized amounts: | Net transition asset | Prior service cost | Net actuarial (gain) loss | Prepaid (accrued) benefit cost reported inOther assets (Accrued expenses), respectively | Accumulated benefit obligation |


| (in millions, except per share, ratio and headcount data) 2013 2012 2011 2010 2009 | Selected income statement data | Total net revenue | Total noninterest expense | Pre-provision profit | Provision for credit losses | Income before income tax expense and extraordinary gain | Income tax expense | Income before extraordinary gain | Extraordinary gain | Net income | Per common share data | Basic earnings | Income before extraordinary gain | Net income | Diluted earnings | Income before extraordinary gain | Net income | Cash dividends declared per share | Book value per share | Tangible book value per share (“TBVS”)(a) | Common shares outstanding | Average: Basic | Diluted | Common shares at period-end | Share price(b) | High | Low | Close | Market capitalization | Selected ratios | Return on common equity (“ROE”) | Income before extraordinary gain | Net income | Return on tangible common equity (“ROTCE”)(a) | Income before extraordinary gain | Net income | Return on assets (“ROA”) | Income before extraordinary gain | Net income | Return on risk-weighted assets(c)(d) | Income before extraordinary gain | Net income | Overhead ratio | Loans-to-deposits ratio | High Quality Liquid Assets (“HQLA“) (in billions)(e) | Tier 1 capital ratio(d) | Total capital ratio(d) | Tier 1 leverage ratio | Tier 1 common capital ratio(d)(f) | Selected balance sheet data (period-end) | Trading assets | Securities(g) | Loans | Total assets | Deposits | Long-term debt(h) | Common stockholders’ equity | Total stockholders’ equity | Headcount(i) | Credit quality metrics | Allowance for credit losses | Allowance for loan losses to total retained loans | Allowance for loan losses to retained loans excluding purchased credit-impaired loans(j) | Nonperforming assets | Net charge-offs | Net charge-off rate |


| Restaurants at December 31, 2009 2008 2007 | Conventional franchised | Developmental licensed | Affiliated | Franchised | Company-operated | Systemwide restaurants |


| 2014 2015 2016 2017 2018 Thereafter Total | Recorded Obligations: | Expected environmental liabilities:(a) | Final capping, closure and post-closure | Environmental remediation | 130 | Debt payments(b),(c),(d) | Unrecorded Obligations:(e) | Non-cancelable operating lease obligations | Estimated unconditional purchase obligations(f) | Anticipated liquidity impact as of December 31, 2013 |


| September 30, 2007 September 30, 2006 | Trading Instruments | (in 000's) | Marketable: | Municipal Obligations | Corporate Obligations | Government Obligations | Agencies | Total Debt Securities | Derivative Contracts | Equity Securities | Other Securities | Total |


| Years ended December 31 2011 2010 2009 | Risk Solutions | HR Solutions | Intersegment elimination | Total operating segments | Unallocated | Total revenue |


Other (income) expense primarily comprises our equity in net income of AGO prior to the June 2009 issuance and Huatai Insurance Company of China, Limited, which is included in equity in net income of partially-owned entities.
As discussed previously, prior to AGOs June 2009 issuance, we included our investment in AGO in Investments in partially-owned insurance companies and reflected our portion of its net income (loss) under equity in net income of partially-owned entities.
Effective with the June 2009 issuance, we now account for the investment as an available-for-sale equity security.
Refer to OverviewInvestment in Assured Guaranty Ltd.
Other (income) expense also includes certain federal excise and capital taxes incurred as a result of capital management initiatives.
These transactions are considered capital in nature and are excluded from underwriting results.


| As of or for the year ended December 31, (in millions) 2012 2011 2010 | Securities gains(a) | Investment securities portfolio (average) | Investment securities portfolio (period–end) | Mortgage loans (average) | Mortgage loans (period-end) |


| Natural Gas and Casinghead Gas (Bcf) | United States | Proved Reserves as of: | December 31, 2007 | Revisions of Previous Estimates-2 | Extensions, Discoveries and Other Additions-3 | Purchase of Minerals in Place-4 | Sale of Minerals in Place-5 | Production | December 31, 2008 | Revisions of Previous Estimates-2 | Extensions, Discoveries and Other Additions-3 | Purchase of Minerals in Place-4 | Sale of Minerals in Place-5 | Production | December 31, 2009 | Revisions of Previous Estimates-2 | Extensions, Discoveries and Other Additions-3 | Purchase of Minerals in Place-4 | Sale of Minerals in Place-5 | Production | December 31, 2010 | Proved Developed Reserves as of: | December 31, 2007 | December 31, 2008 | December 31, 2009 | December 31, 2010 | Proved Undeveloped Reserves as of: | December 31, 2007 | December 31, 2008 | December 31, 2009 | December 31, 2010 |


NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS 92 6.
EQUITY INVESTMENTS Eastman has a 50 percent interest in and serves as the operating partner in Primester, a joint venture which manufactures cellulose acetate at Eastman's Kingsport, Tennessee plant.
This investment is accounted for under the equity method.
Eastman's net investment in the joint venture at December 31, 2007 and 2006 was approximately $43 million and $47 million, respectively, which was comprised of the recognized portion of the venture's accumulated deficits, long-term amounts owed to Primester, and a line of credit from Eastman to Primester.
Such amounts are included in other noncurrent assets.
Eastman owns a 50 percent interest in Nanjing Yangzi Eastman Chemical Ltd.  (“Nanjing”), a company which manufactures EastotacTM hydrocarbon tackifying resins for the adhesives market.
This joint venture is accounted for under the equity method and is included in other noncurrent assets.
At December 31, 2007 and 2006, the Company’s investment in Nanjing was approximately $7 million and $5 million, respectively.
In October 2007, the Company entered into an agreement with Green Rock Energy, L. L. C.  ("Green Rock"), a company formed by the D.  E.  Shaw Group and Goldman, Sachs & Co. , to jointly develop the industrial gasification facility in Beaumont, Texas through TX Energy, LLC ("TX Energy").
Eastman owns a 50 percent interest in TX Energy, which is expected to be operational in 2011 and will produce intermediate chemicals, such as hydrogen, methanol, and ammonia from petroleum coke.
This joint venture in the development stage is accounted for under the equity method, and is included in other noncurrent assets.
At December 31, 2007, the Company’s investment in TX Energy was approximately $26 million.
Eastman also plans to participate in a project sponsored by Faustina Hydrogen Products, L. L. C.  which will use petroleum coke as the primary feedstock to make anhydrous ammonia and methanol.
Faustina Hydrogen Products is primarily owned by Green Rock.
The Company intends to take a 25 percent or greater equity position in the project, provide operations, maintenance, and other site management services, and purchase methanol under a long-term contract.
Capital costs for the facility are estimated to be approximately $1.6 billion.
Project financing is expected to be obtained by the end of 2008.
The facility will be built in St.  James Parish, Louisiana and is expected to be complete by 2011.
On April 21, 2005, the Company completed the sale of its equity investment in Genencor International, Inc.  ("Genencor") for cash proceeds of approximately $417 million, net of $2 million in fees.
The book value of the investment prior to sale was $246 million, and the Company recorded a pre-tax gain on the sale of $171 million.7.


| December 31, | 2013 | (in millions) | Syndicated loans | Unpaid principal balance | Excess unpaid principal over fair value | Fair value | Fair value of loans more than 90 days past due | Fair value of loans in nonaccrual status | Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | Debt | Unpaid principal balance | Excess unpaid principal over fair value | Fair value |


| RestrictedStock UnitsOutstanding(in thousands) Weighted-Average Grant-Date Fair ValuePer Share | Restricted stock units outstanding at November 1, 2014 | Units granted | Restrictions lapsed | Forfeited | Restricted stock units outstanding at October 31, 2015 | December 31, 2015 | Amount | U.S. dollar notes due 2016–2093 | U.S. dollar debentures due 2017–2098 | U.S. dollar zero coupon notes due 20202 | Euro notes due 2017–20273 | Swiss franc notes due 2017–20283 | Other, due through 20984 | Fair value adjustment5 | Total6,7 | Less current portion | Long-term debt | Maturities ofLong-Term Debt | 2016 | 2017 | 2018 | 2019 | 2020 |


| 2010 2011 2012 2013 2014 2015 | JKHY | Peer Group | S&P 500 |


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


The following is a description of the notable comparable sales changes in our Domestic segment by revenue category: ?
Consumer Electronics: The 4.7% comparable sales increase was primarily due to an increase in the sales of large screen televisions, the expansion of Magnolia Design Center stores-within-a-store, and expanded assortment of streaming devices.
This increase was partially offset by industry declines in point and shoot cameras and lower sales in small and mid-size televisions.  ?
Computing and Mobile Phones: The 2.6% comparable sales decline was primarily due to continued industry declines in tablets and to a lesser extent lower demand for mobile phones.  ?
Entertainment: The 3.6% comparable sales decrease was driven by declines in music and movies due to continued industry declines as well as declines in gaming hardware.  ?
Appliances: The 15.4% comparable sales gain was a result of continued growth in major appliances sales as well as the expansion of Pacific Kitchen & Home stores-within-a-store.  ?
Services: The 11.6% comparable sales decline was primarily due to lower repair revenue from extended protection plan claims.
This trend, which primarily related to mobile phones, was a reflection of changes to the design of our extended protection plans, improvements to our repair and fulfillment operations and industry trends.
Our Domestic segment experienced an increase in gross profit of $404 million, or 5.0%, in fiscal 2016 compared to fiscal 2015.
Excluding the $88 million of CRT/LCD litigation settlement proceeds received in fiscal 2016, we experienced an increase in gross profit of $316 million, or 3.9%.
Refer to Note 12, Contingencies and Commitments, in the Notes to the Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for additional information.
This rate increase was primarily due to (1) the periodic profit-share revenue described above; (2) rate improvements in computing hardware driven by our more disciplined promotional strategy; (3) an additional positive mix shift due to significantly decreased revenue in the lower-margin tablet category; (4) the positive impact of lower repair revenue


| Year Ended October 31, $ Change % Change $ Change % Change | 2014 | (dollars in millions) | Included in cost of revenue | Included in operating expenses | Total | Percentage of total revenue |


| 2008 $317 | 2009 | 2010 | 2011 | 2012 | Later years | Total minimum payments required | Year ended September 30, | 2015 | (in thousands, except per share amounts) | Common stock, par value $.01 per share: | Balance, beginning of year | Share issuances | Balance, end of year | Additional paid-in capital: | Balance, beginning of year | Employee stock purchases | Exercise of stock options and vesting of restricted stock units, net of forfeitures | Restricted stock, stock option and restricted stock unit expense | Excess tax benefit (reduction of prior tax benefits) from share-based payments | Purchase of additional equity interest in subsidiary | Other | Balance, end of year | Retained earnings: | Balance, beginning of year | Net income attributable to Raymond James Financial, Inc. | Cash dividends declared | Other | Balance, end of year | Treasury stock: | Balance, beginning of year | Purchases/surrenders | Exercise of stock options and vesting of restricted stock units, net of forfeitures | Balance, end of year | Accumulated other comprehensive loss:-1 | Balance, beginning of year | Net change in unrealized losses on available for sale securities and non-credit portion of other-than-temporary impairment losses, net of tax | Net change in currency translations and net investment hedges, net of tax | Net change in cash flow hedges, net of tax | Balance, end of year | Total equity attributable to Raymond James Financial, Inc. | Noncontrolling interests: | Balance, beginning of year | Net (loss) income attributable to noncontrolling interests | Capital contributions | Distributions | Consolidation of acquired entity | Derecognition resulting from acquisition of additional interests | Other | Balance, end of year | Total equity |


| 2012 2011 | Long/(Short) | (In millions) | Highest position | Lowest position | Average position |


| Year ended December 31Dollars in millions 2016 2015 2014 | Noninterest income | Asset management | Consumer services | Corporate services | Residential mortgage | Service charges on deposits | Total fee income | Other | Total noninterest income | December 31 – dollars in millions | Nonperforming loans | Commercial | Commercial real estate | Equipment lease financing | Total commercial lending | Consumer lending (a) | Home equity (b) | Residential real estate (b) | Credit card | Other consumer (b) | Total consumer lending | Total nonperforming loans (c) | OREO, foreclosed and other assets | Total nonperforming assets | Nonperforming loans to total loans | Nonperforming assets to total loans, OREO, foreclosed and other assets | Nonperforming assets to total assets | Interest on nonperforming loans | Computed on original terms | Recognized prior to nonperforming status | Troubled Debt Restructurings | Nonperforming | Performing | Past due loans | Accruing loans past due 90 days or more (d) | As a percentage of total loans | Past due loans held for sale | Accruing loans held for sale past due 90 days or more | As a percentage of total loans held for sale |


| (in millions) 2017 2016 | Beginning balance | Net increase (decrease) in unrealized allocations | Performance fee revenue recognized | Acquisition | Ending balance |


| Natural Gas Nuclear Coal PurchasedPower | Year | 2011 | 2010 | 2009 |


Further, the Company evaluates whether its co-investments are other than temporarily impaired and, if so, records an impairment loss equal to the excess of the co-investments carrying value over its estimated fair value.
The Company capitalizes all direct and certain indirect costs, including interest and real estate taxes, incurred during development and redevelopment activities.
Interest is capitalized on real estate assets that require a period of time to get them ready for their intended use.
The amount of interest capitalized is based upon the average amount of accumulated development expenditures during the reporting period.
Included in capitalized costs are managements accounting estimates of the direct and incremental personnel costs and indirect project costs associated with the Companys development and redevelopment activities.
Indirect project costs consist primarily of personnel costs associated with construction administration and development, including accounting, legal fees, and various corporate and community onsite costs that clearly relate to projects under development.
The Company bases its accounting estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances.
Actual results may vary from those estimates and those estimates could be different under different assumptions or conditions.
Net Operating Income (NOI) Same-Property net operating income (NOI) is considered by management to be an important supplemental performance measure to earnings from operations included in the Companys consolidated statements of income.
The presentation of Same-Property NOI assists with the presentation of the Companys operations prior to the allocation of depreciation and any corporate-level or financing-related costs.
NOI reflects the operating performance of a community and allows for an easy comparison of the operating performance of individual communities or groups of communities.
Prospective buyers of real estate have different financing and overhead structures, with varying marginal impacts to overhead by acquiring real estate, and NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or group of assets.
The Company defines Same-Property NOI as Same-Property revenue less Same-Property operating expenses.
The reconciliation of earnings from operations to Same-Property NOI for the periods presented:


| 2002 2003 2004 | Cash flows provided by operating activities | Cash flows used in investing activities | Cash flows provided by financing activities | Cash and cash equivalents at the end of year |


Note 18.
Contingencies: Tobacco-Related LitigationLegal proceedings covering a wide range of matters are pending or threatened against us, and/or our subsidiaries, and/or our indemnitees in various jurisdictions.
Our indemnitees include distributors, licensees and others that have been named as parties in certain cases and that we have agreed to defend, as well as to pay costs and some or all of judgments, if any, that may be entered against them.
Pursuant to the terms of the Distribution Agreement between Altria Group, Inc.  ("Altria") and PMI, PMI will indemnify Altria and Philip Morris USA Inc.  ("PM USA"), a U. S.  tobacco subsidiary of Altria, for tobacco product claims based in substantial part on products manufactured by PMI or contract manufactured for PMI by PM USA, and PM USA will indemnify PMI for tobacco product claims based in substantial part on products manufactured by PM USA, excluding tobacco products contract manufactured for PMI.
It is possible that there could be adverse developments in pending cases against us and our subsidiaries.
An unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation.
Damages claimed in some of the tobacco-related litigation are significant and, in certain cases in Brazil, Canada and Nigeria, range into the billions of U. S.  dollars.
The variability in pleadings in multiple jurisdictions, together with the actual experience of management in litigating claims, demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome.
Much of the tobacco-related litigation is in its early stages, and litigation is subject to uncertainty.
However, as discussed below, we have to date been largely successful in defending tobacco-related litigation.
We and our subsidiaries record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated.
At the present time, while it is reasonably possible that an unfavorable outcome in a case may occur, after assessing the information available to it (i) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases; (ii) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases; and (iii) accordingly, no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases, if any.
Legal defense costs are expensed as incurred.


| Year Ended December 31, | 2011 | Credit loss balance, beginning of period | Additions: | Initial credit impairment | Subsequent credit impairment | Credit loss balance, end of period |


| Year ended December 31 – dollars in millions 2012 2011 2010 2009 2008 | Allowance for loan and lease losses – January 1 | Charge-offs | Commercial | Commercial real estate | Equipment lease financing | Consumer (a) | Residential real estate | Total charge-offs | Recoveries | Commercial | Commercial real estate | Equipment lease financing | Consumer (a) | Residential real estate | Total recoveries | Net charge-offs | Provision for credit losses (b) | Acquired allowance – National City | Other | Adoption of ASU 2009-17,Consolidations | Net change in allowance for unfunded loan commitments and letters ofcredit | Allowance for loan and lease losses – December 31 | Allowance as a percent of December 31: | Loans | Nonperforming loans | As a percent of average loans | Net charge-offs | Provision for credit losses | Allowance for loan and lease losses | Allowance as a multiple of net charge-offs |


| Cocoa Futures Contract Prices (cents per pound) | 2006 | Annual Average | High | Low |


Obligations Associated with the Separation of United States Steel On December 31, 2001, we disposed of our steel business through a tax-free distribution of the common stock of our wholly owned subsidiary, United States Steel, to holders of its USX – U.  S.  Steel Group class of common stock (‘‘Steel Stock’’) in exchange for all outstanding shares of Steel Stock on a one-for-one basis (the ‘‘Separation’).
We remain obligated (primarily or contingently) for certain debt and other financial arrangements for which United States Steel has assumed responsibility for repayment under the terms of the Separation.
United States Steel’s obligations to Marathon are general unsecured obligations that rank equal to United States Steel’s accounts payable and other general unsecured obligations.
If United States Steel fails to satisfy these obligations, we would become responsible for repayment.
Under the Financial Matters Agreement, United States Steel has all of the existing contractual rights under the leases assumed from Marathon, including all rights related to purchase options, prepayments or the grant or release of security interests.
However, United States Steel has no right to increase amounts due under or lengthen the term of any of the assumed leases, other than extensions set forth in the terms of the assumed leases.
As of December 31, 2004, we have identified the following obligations totaling $671 million that have been assumed by United States Steel: ?
$472 million of industrial revenue bonds related to environmental improvement projects for current and former United States Steel facilities, with maturities ranging from 2009 through 2033.
Accrued interest payable on these bonds was $8 million at December 31, 2004.  ?
$71 million of sale-leaseback financing under a lease for equipment at United States Steel’s Fairfield Works, with a term extending to 2012, subject to extensions.
There was no accrued interest payable on this financing at December 31, 2004.  ?
$51 million of obligations under a lease for equipment at United States Steel’s Clairton cokemaking facility, with a term extending to 2012.
There was no accrued interest payable on this financing at December 31, 2004.  ?
$55 million of operating lease obligations, of which $42 million was in turn assumed by purchasers of major equipment used in plants and operations divested by United States Steel.  ?
A guarantee of United States Steel’s $14 million contingent obligation to repay certain distributions from its 50 percent owned joint venture PRO-TEC Coating Company.  ?
A guarantee of all obligations of United States Steel as general partner of Clairton 1314B Partnership, L. P.  to the limited partners.
United States Steel has reported that it currently has no unpaid outstanding obligations to the limited partners.
For further discussion of the Clairton 1314B guarantee, see Note 3 to the Consolidated Financial Statements.
Of the total $671 million, obligations of $602 million and corresponding receivables from United States Steel were recorded on our consolidated balance sheet (current portion – $15 million; long-term portion – $587 million).
The remaining $69 million was related to off-balance sheet arrangements and contingent liabilities of United States Steel.


Assets and Liabilities Held for Sale and Discontinued Operations Assets and Liabilities Held for Sale We classify a disposal group to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal group; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond our control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.
A disposal group that is classified as held for sale is initially measured at the lower of its carrying value or fair value less any costs to sell.
Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met.
Conversely, gains are not recognized on the sale of a disposal group until the date of sale.
amount of removal costs accumulated through historic depreciation expense based on current factors used in the existing depreciation rates.
Accordingly, the recorded amounts of estimated future removal costs are considered regulatory liabilities.
Removal costs by entity are as follows at Dec.  31:


| Cash and cash equivalents $349,615 | Short-term investments | Merchandise inventories | Income taxes receivable | Deferred income taxes | Prepaid expenses and other current assets | Property and equipment, net | Goodwill | Intangible assets | Other assets, net | Current portion of long-term obligations | Accounts payable | Accrued expenses and other | Income taxes payable | Long-term obligations | Deferred income taxes | Other liabilities | Total purchase price assigned |


Table of Contents incentive payouts and about $33 million in compensation and benefit savings due to lower staffing levels and lower severance related charges in fiscal 2009.
Acquisition-related charges increased in fiscal 2009 compared with fiscal 2008 primarily due to the amortization of Homestead and ECHO purchased intangible assets, which we acquired in fiscal 2008.
Fiscal 2008 Compared with Fiscal 2007.
Total operating expenses as a percentage of total net revenue increased to 59% in fiscal 2008 from 57% in fiscal 2007.
Total operating expenses in dollars increased about $270 million in fiscal 2008, approximately $109 million of which was due to our acquisitions of Digital Insight, Homestead and ECHO and approximately $37 million of which was due to higher share-based compensation expense.
Share-based compensation expense was higher in fiscal 2008 compared with fiscal 2007 due to our broad use of restricted stock units in addition to stock options.
We also recorded a $23 million restructuring charge in the fourth quarter of fiscal 2008 in connection with a reallocation of resources to key growth businesses.
Including Digital Insight, Homestead, ECHO, share-based compensation expense and the restructuring charge, about half of the increase in total operating expenses in dollars for fiscal 2008 was due to higher research and development expenses.
During this period, we continued to invest in research and development for existing offerings as well as for new offerings.
Almost 45% of the fiscal 2008 increase in total operating expenses in dollars was due to higher selling and marketing expenses.
Of the total increase in selling and marketing expenses in dollars for this period about a third was due to our acquisition of Digital Insight, whose selling costs are relatively higher compared with our other businesses because they sell their services to financial institutions through a direct sales force.
About 20% of the fiscal 2008 increase in selling and marketing expenses in dollars was due to higher advertising and other marketing expenses to support our Consumer Tax offerings.
Excluding the impact of the increase in share-based compensation expense, general and administrative expenses declined about $5 million in fiscal 2008 compared with fiscal 2007.
Acquisition-related charges increased in fiscal 2008 compared with fiscal 2007 primarily due to the amortization of Digital Insight purchased intangible assets, which we acquired in February 2007.
Segment Operating Income (Loss) Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses.
Segment expenses do not include certain costs, such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses, which are not allocated to specific segments.
These unallocated costs totaled $516.8 million in fiscal 2009, $543.0 million in fiscal 2008 and $486.4 million in fiscal 2007.
Segment expenses also do not include amortization of purchased intangible assets and acquisition-related charges.
See Note 15 to the financial statements in Item 8 for reconciliations of total segment operating income to operating income from continuing operations for each fiscal year presented.


Goodwill impairment Under U. S.  GAAP, goodwill must be allocated to reporting units and tested for impairment at least annually.
The Firms process and methodology used to conduct goodwill impairment testing is described in Note 17.
Management applies significant judgment when estimating the fair value of its reporting units.
Estimates of fair value are dependent upon estimates of (a) the future earnings potential of the Firms reporting units, including the estimated effects of regulatory and legislative changes, (b) long-term growth rates and (c) the estimated market cost of equity.
Imprecision in estimating these factors can affect the estimated fair value of the reporting units.
Based upon the updated valuations for all of its reporting units, the Firm concluded that the goodwill allocated to its reporting units was not impaired at December 31, 2016.
The fair values of these reporting units exceeded their carrying values by approximately 10% - 130% for all


| Plant Location Ownership Net Owned Capacity (a) Type | Independence Unit 2; 842 MW | RS Cogen; 425 MW (c) | Nelson 6; 550 MW |


| December 31, 2010 | Total   Balance   Sheet | (In millions) | Assets: | Premiums, reinsurance and other receivables | Deferred policy acquisition costs and value of business acquired | Total assets | Liabilities: | Future policy benefits | Policyholder account balances | Other policy-related balances | Other liabilities | Total liabilities |


| 2011 $5.4 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total future maturities of the long-term debt |


Provision for Income Taxes The Companys effective tax rates were 30% for the years ended September 27, 2008 and September 29, 2007, and 29% for the year ended September 30, 2006.
The Companys effective rates differ from the statutory federal income tax rate of 35% due primarily to certain undistributed foreign earnings for which no U. S.  taxes are provided because such earnings are intended to be indefinitely reinvested outside the U. S.  As of September 27, 2008, the Company had deferred tax assets arising from deductible temporary differences, tax losses, and tax credits of $2.1 billion before being offset against certain deferred liabilities for presentation on the Companys balance sheet.
Management believes it is more likely than not that forecasted income, including


| Reporting unit-1 Fair value as a % of allocated book value Goodwill | North America Regional Consumer Banking | EMEA Regional Consumer Banking | Asia Regional Consumer Banking | Latin America Regional Consumer Banking | Securities and Banking | Transaction Services | Brokerage and Asset Management | Local Consumer Lending—Cards | In millions of dollars at December 31, 2010 | State and municipal | Foreign government | Corporate | Equity securities | Asset-backed securities | Other debt securities | Non-marketable equity securities | Total investments | Loans-2 | Mortgage servicing rights | Other financial assets measured on a recurring basis | Total assets | Total as a percentage of gross assets-3 | Liabilities | Interest-bearing deposits | Federal funds purchased and securities loaned or sold under | agreements to repurchase | Trading account liabilities | Securities sold, not yet purchased | Derivatives | Interest rate contracts | Foreign exchange contracts | Equity contracts | Commodity contracts | Credit derivatives | Total gross derivatives | Cash collateral received | Netting agreements and market value adjustments | Total derivatives | Short-term borrowings | Long-term debt | Other financial liabilities measured on a recurring basis | Total liabilities | Total as a percentage of gross liabilities-3 |


| U.S. defined benefit pension plans Non-U.S. defined benefit pension plans | December 31, 2011(in millions) | Cash and cash equivalents | Equity securities: | Capital equipment | Consumer goods | Banks and finance companies | Business services | Energy | Materials | Real estate | Other | Total equity securities | Common/collective trust funds(a) | Limited partnerships:(b) | Hedge funds | Private equity | Real estate | Real assets(c) | Total limited partnerships | Corporate debt securities(d) | U.S. federal, state, local and non-U.S. government debt securities | Mortgage-backed securities | Derivative receivables | Other(e) | Total assets measured at fair value(f)(g) | Derivative payables | Total liabilities measured at fair value(h) |


Newell Rubbermaid Inc.  2010 Annual Report Operating income for 2009 was $274.7 million, or 11.6% of net sales, an increase of $56.4 million, or 25.8%, from $218.3 million, or 8.2% of net sales, for 2008.
The 340 basis point improvement in operating margin was primarily due to moderating input costs, product line exits and rationalizations and productivity improvements.
In the aggregate, these improvements contributed 450 basis points to the net expansion in operating margin and were partially offset by unfavorable mix and an increase in SG&A expenses as a percentage of net sales.
Office Products Net sales for 2009 were $1,674.7 million, a decrease of $316.1 million, or 15.9%, from $1,990.8 million for 2008.
Core sales declined 6.5%, which was primarily attributable to weak consumer demand both domestically and internationally and inventory destocking at the retail level.
Reduced sales relating to product line exits and rationalizations and unfavorable foreign currency contributed an additional 6.0% and 3.4%, respectively, to the year-over-year decline.
Operating income for 2009 was $235.2 million, or 14.0% of net sales, an increase of $22.8 million, or 10.7%, from $212.4 million, or 10.7% of net sales for 2008.
The 330 basis point improvement in operating margin was primarily attributable to product line exits and rationalizations.
In constant currency, SG&A expenses as a percentage of net sales in 2009 were comparable to 2008.
Tools, Hardware & Commercial Products Net sales for 2009 were $1,525.7 million, a decrease of $299.3 million, or 16.4%, from $1,825.0 million for 2008.
Core sales declined 15.8% as sales volumes were negatively impacted by inventory management by retail, commercial and industrial customers; continued softness in the residential construction market, both domestically and internationally; and sustained weakness in industrial and commercial channels.
Unfavorable foreign currency contributed an additional 2.0% decline, and the Technical Concepts acquisition increased sales $26.2 million, or 1.4%, versus the prior year.
Operating income for 2009 was $245.6 million, or 16.1% of net sales, a decrease of $26.1 million, or 9.6%, from $271.7 million, or 14.9% of net sales, for 2008.
The 120 basis point expansion in operating margin was primarily driven by the moderation of input costs compared to the prior year and improved product mix, which combined contributed 190 basis points to the expansion, as well as productivity gains, all of which were partially offset by the adverse impacts of lower production volumes.
The lower production volumes were primarily the result of aggressive management of inventory levels by the Company’s customers and lower sales resulting from weak demand.
In constant currency, SG&A expenses as a percentage of net sales in 2009 were comparable to 2008.


| December 31,(in billions) Lifetime lossestimates(a) LTD liquidationlosses(b) | 2013 | Home equity | Prime mortgage | Subprime mortgage | Option ARMs | Total |


Liquidity and Capital Resources Overview During the year ended December 31, 2016, we increased our financial flexibility and our ability to grow our business while maintaining our long-term financial policies.
Our significant 2016 financing transactions included: ?
Registered public offerings of $750.0 million aggregate principal amount of 3.300% senior unsecured notes due 2021 (the “3.300% Notes”) and $500.0 million aggregate principal amount of 4.400% senior unsecured notes due 2026 (the “4.400% Notes”).  ?
A registered public offering of $1.0 billion aggregate principal amount of 3.375% senior unsecured notes due 2026 (the “3.375% Notes”).  ?
Registered public offerings of $600.0 million aggregate principal amount of 2.250% senior unsecured notes due 2022 (the “2.250% Notes”) and $400.0 million aggregate principal amount of 3.125% senior unsecured notes due 2027 (the “3.125% Notes”).  ?
Amendment of our multicurrency senior unsecured revolving credit facility entered into in June 2013, as amended (the “2013 Credit Facility”), our senior unsecured revolving credit facility entered into in January 2012, as amended and restated in September 2014, as further amended (the “2014 Credit Facility”) and our unsecured term loan entered into in October 2013, as amended (the “Term Loan”) to, among other things, extend the maturity dates by one year.
As a holding company, our cash flows are derived primarily from the operations of, and distributions from, our operating subsidiaries or funds raised through borrowings under our credit facilities and debt or equity offerings.
The following table summarizes our liquidity as of December 31, 2016 (in thousands):


| Interest Rates | Weighted | Range | (In millions) | Senior notes | Advances agreements | Surplus notes | Fixed rate notes | Other notes with varying interest rates | Capital lease obligations | Total long-term debt -1 | Total short-term debt | Total |


| December 31, | 2014 | U.S. | Benefit Obligation: | Discount rates | Rates of compensation increase | Periodic Benefit Cost: | Discount rate | Expected long-term rate of return on plan assets | Rate of compensation increase |


| Amount Ratios | December 31Dollars in millions | Risk-based capital | Tier 1 | PNC | PNC Bank | Total | PNC | PNC Bank | Leverage | PNC | PNC Bank |


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


| (Dollars in millions) 2008 2007 2006 2005 2004 | Allowance for loan and lease losses, January 1 | Adjustment due to the adoption of SFAS 159 | Loans and leases charged off | Residential mortgage | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer | Other consumer | Total consumer charge-offs | Commercial – domestic-1 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial charge-offs | Total loans and leases charged off | Recoveries of loans and leases previously charged off | Residential mortgage | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer | Other consumer | Total consumer recoveries | Commercial – domestic-2 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial recoveries | Total recoveries of loans and leases previously charged off | Net charge-offs | Provision for loan and lease losses | Other-3 | Allowance for loan and lease losses, December 31 | Reserve for unfunded lending commitments, January 1 | Adjustment due to the adoption of SFAS 159 | Provision for unfunded lending commitments | Other-4 | Reserve for unfunded lending commitments, December 31 | Allowance for credit losses, December 31 | Loans and leases outstanding at December 31-5 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-5, 6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31-6 | Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31-5 | Average loans and leases outstanding at December 31-5, 6 | Net charge-offs as a percentage of average loans and leases outstanding at December 31-5, 6 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-5, 6 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs-6 |


| (In millions) Real Estate  Funds Hedge Funds Other Total | Balance at March 31, 2009 | Unrealized (loss) on plan assets still held | Balance at March 31, 2010 | Purchases, sales and settlements | Transfer in and/or out of Level 3 | Balance at March 31, 2011 | See Note(s) | (Thousands of Dollars) | Regulatory Assets | Current regulatory asset — Unrecovered fuel costs | Pension and employee benefit obligations | AFDC recorded in plant(a) | Conservation programs(a) | Contract valuation adjustments(b) | Losses on reacquired debt | Environmental costs | Renewable resource costs | Net asset retirement obligations(c) | Unrecovered natural gas costs | State commission accounting adjustments(a) | MISO Day 2 costs | Nuclear fuel storage | Nuclear decommissioning costs | Rate case costs | Other | Total noncurrent regulatory assets | Regulatory Liabilities | Current regulatory liability — Overrecovered fuel costs(d) | Plant removal costs | Pension and employee benefit obligations | Contract valuation adjustments(b) | Investment tax credit deferrals | Deferred income tax adjustments | Gain on sale of emission allowances | Interest on income tax refunds | Over recovered fuel costs | Other | Total noncurrent regulatory liabilities |


Notes to Consolidated Financial Statements – (continued) (Amounts in Millions, Except Per Share Amounts) During 2017, we completed ten acquisitions, eight of which were included in the Integrated Agency Networks (“IAN”) operating segment, and two of which were included in the Constituency Management Group (“CMG”) operating segment.
These acquisitions included a digital marketing agency based in the U. S. , a data science and business intelligence firm based in the U. S.  with operations in China, an advertising and consulting company based in Indonesia, a strategic communications agency based in the U. K. , an independent creative agency based in the U. K. , a retail branding and design firm based in the U. S. , a content creation and marketing agency based in the Netherlands, an independent media agency and digital consultancy based in Finland, and an integrated marketing communications agency based in Canada.
During 2017, we recorded approximately $62.0 of goodwill and intangible assets related to our acquisitions.
During 2016, we completed ten acquisitions, three of which were included in the IAN operating segment, and seven of which were included in the CMG operating segment.
The most significant acquisitions included a product and service design consultancy based in the U. S. , an integrated healthcare marketing communications agency based in the U. S. , a content creation and digital agency with offices in the U. S.  and the U. K. , a mobile consultancy and application development agency based in the U. K. , a full-service public relations and digital agency based in China, a search engine optimization and digital content marketing agency based in the U. K. , and a mobile focused digital agency based in the U. K.  During 2016, we recorded approximately $149.0 of goodwill and intangible assets related to these acquisitions.
During 2015, we completed five acquisitions, four of which were included in the IAN operating segment, and one of which was included in the CMG operating segment.
The most significant acquisitions included a full-service digital agency in the U. K. , a group of creative marketing agencies based in Russia, and a media planning and buying agency with significant digital capabilities in Canada.
During 2015, we recorded approximately $61.0 of goodwill and intangible assets related to these acquisitions.
The results of operations of our acquired companies were included in our consolidated results from the closing date of each acquisition.
We did not make any payments in stock related to our acquisitions in 2017, 2016 or 2015.
Details of cash paid for current and prior years’ acquisitions are listed below.


| (Dollars in millions) 2009 2008 | Net interest income-1 | As reported | Impact of market-based net interest income-2 | Core net interest income | Impact of securitizations-3 | Core net interest income – managed basis | Average earning assets | As reported | Impact of market-based earning assets-2 | Core average earning assets | Impact of securitizations-4 | Core average earning assets – managed basis | Net interest yield contribution-1 | As reported | Impact of market-based activities-2 | Core net interest yield on earning assets | Impact of securitizations | Core net interest yield on earning assets – managed basis |


| Con Edison Con Edison of New York | (Millions of Dollars) | Service cost – including administrative expenses | Interest cost on projected benefit obligation | Expected return on plan assets | Amortization of net actuarial loss | Amortization of prior service costs | Net Periodic Benefit Cost | Amortization of regulatory asset* | Total Periodic Benefit Cost | Cost capitalized | Cost deferred | Cost charged (credited) to operating expenses |


Investment Securities Investment securities totaled $8,372.4 million, or 52% of total assets at December 31, 2010, and $7,497.2 million, or 53% of total assets at December 31, 2009.
Debt securities, detailed below, comprised this entire investment portfolio at December 31, 2010 and at December 31, 2009.
The fair value of debt securities were as follows at December 31, 2010 and 2009:


| December 31, | Subsidiaries | (In millions) | Metropolitan Life Insurance Company | Metropolitan Life Insurance Company | Metropolitan Life Insurance Company | Metropolitan Life Insurance Company | Metropolitan Life Insurance Company | Total |


| Year Ended March 31, Potential Dilutive Shares from Exercise of Common Stock Options | 2004 | 2005 | 2006 |