(1) As of December 31, 2010 and 2009, includes $0.3 billion and $2.0 billion, respectively, of short-term debt representing collateralized advances with the Federal Home Loan Bank of New York, which are discussed in more detail in Alternative Sources of LiquidityFederal Home Loan Bank of New York.
 (2) As of both December 31, 2010 and 2009, includes $3.2 billion of floating rate surplus notes issued by subsidiaries of Prudential Insurance to fund regulatory reserves, as well as $942 million and $941 million, respectively, of fixed rate surplus notes issued by Prudential Insurance.
(3) Reflects collateralized advances with Federal Home Loan Bank of New York, which are discussed in more detail in Alternative Sources of LiquidityFederal Home Loan Bank of New York.
 (4) As of both December 31, 2010 and 2009, $1.750 billion of limited and non-recourse long-term debt outstanding was attributable to the Closed Block Business.
(5) Does not include $3.5 billion and $4.9 billion of medium-term notes of consolidated trust entities secured by funding agreements purchased with the proceeds of such notes as of December 31, 2010 and 2009, respectively, or $1.5 billion of collateralized funding agreements issued to the Federal Home Loan Bank of New York as of both December 31, 2010 and 2009.
These notes and funding agreements are included in Policyholders account balances.
 For additional information on the trust notes, see Funding Agreement Notes Issuance Program and for additional information on the Federal Home Loan Bank of New York funding agreements, see Alternative Sources of LiquidityFederal Home Loan Bank of New York.
 On September 18, 2009, Prudential Insurance issued in a private placement $500 million of surplus notes due September 2019, with an interest rate of 5.36% per annum, that are exchangeable by the holders for shares of Prudential Financial Common Stock.
See Note 14 to our Consolidated Financial Statements for more information regarding these exchangeable surplus notes.
The proceeds from the sale of these surplus notes are being used for general corporate purposes at Prudential Insurance.
Total general debt obligations increased by $1.9 billion from December 31, 2009 to December 31, 2010, primarily reflecting issuances of medium-term notes and an increase in commercial paper utilized to fund loans to our affiliates, offset by the repayment of the collateralized advance with the Federal Home Loan Bank of New York and certain retail medium-term notes.
Our total borrowings consist of capital debt, investment-related debt, securities business-related debt and debt related to specified other businesses.
Capital debt consists of borrowings that are used or will be used to meet the capital requirements of Prudential Financial, as well as borrowings invested in equity or debt securities of direct or indirect subsidiaries of Prudential Financial and subsidiary borrowings utilized for capital requirements.
Investment-related borrowings consist of debt issued to finance specific investment assets or portfolios of investment assets, including institutional spread lending investment portfolios, real estate and real estate-related investments held in consolidated joint ventures, assets supporting reserve requirements under Regulation XXX and Guideline AXXX as described below, as well as institutional and insurance company portfolio cash flow timing differences.
Securities business-related debt consists of debt issued to finance primarily the liquidity of our broker-dealers and our capital markets and other securities business-related operations.
Debt related to specified other businesses consists of borrowings associated with our individual annuity business, real estate franchises and relocation services.
Borrowings under which either the holder is entitled to collect only against the assets pledged to the debt as collateral, or has only very limited rights to collect against other assets, have been classified as limited and non-recourse debt.
(1) Amounts exclude prepayment premiums, other-than-temporary impairments, and credit related losses through sales of investments pursuant to our credit risk and portfolio management objectives.
(2) Excludes the portion of other-than-temporary impairments recorded in Other comprehensive income (loss), representing any difference between the fair value of the impaired debt security and the net present value of its projected future cash flows at the time of impairment.


| (Millions) 2007 2006 2005 | Interest expense | Interest income | Total |


Operating Cash Flows - Operating cash flows are affected by earnings from our business activities.
Changes in commodity prices and demand for our services or products, whether because of general economic conditions, changes in supply, changes in demand for the end products that are made with our products or increased competition from other service providers, could affect our earnings and operating cash flows.2014 vs.  2013 - Cash flows from operating activities, before changes in operating assets and liabilities, were approximately $1,227.3 million in 2014 compared with $1,302.0 million 2013.
The decrease was due primarily to 2013 operating activities including a full year of operations of our former natural gas distribution business, which was separated from ONEOK on January 31, 2014, as discussed in Note B, offset partially by higher operating income from ONEOK Partners, as discussed in “Financial Results and Operating Information.
” The changes in operating assets and liabilities increased operating cash flows by approximately $58.3 million in 2014, compared with a decrease of $7.2 million in 2013.
The increase was due primarily to the collection and payment of trade receivables and payables, resulting from the timing of cash collections from customers and paid to vendors and suppliers, which vary from period to period.
This change is also due to the change in NGL volumes in storage.
These increases were offset partially by higher settlements of liabilities associated with the wind down of our former energy services business and higher imbalances.


On January 1, 2009, the Corporation acquired Merrill Lynch which contributed to both our consumer and commercial loans and commitments.
Acquired consumer loans consist of residential mortgages, home equity loans and lines of credit and direct/indirect and other loans.
Commercial loans were comprised of both investment and non-investment grade loans and include exposures to CMBS, monolines and leveraged finance.
Consistent with other acquisitions, we will incorporate the acquired assets into our overall credit risk management processes and enhance disclosures where appropriate.
Consumer Portfolio Credit Risk Management Credit risk management for the consumer portfolio begins with initial underwriting and continues throughout a borrowers credit cycle.
Statistical techniques in conjunction with experiential judgment are used in all aspects of portfolio management including underwriting, product pricing, risk appetite, setting credit limits, operating processes and metrics to quantify and balance risks and returns.
Statistical models are built using detailed behavioral information from external sources such as credit bureaus and/or internal historical experience.
These models are a component of our consumer credit risk management process and are used in part to help determine both new and existing credit decisions, portfolio management strategies including authorizations and line management, collection practices and strategies, determination of the allowance for loan and lease losses, and economic capital allocations for credit risk.
For information on our accounting policies regarding delinquencies, nonperforming status and charge-offs for the consumer portfolio, see Note 1  Summary of Significant Accounting Principles to the Consolidated Financial Statements.
Management of Consumer Credit Risk Concentrations Consumer credit risk is evaluated and managed with a goal that credit concentrations do not result in undesirable levels of risk.
We review, measure and manage credit exposure in numerous ways such as by product and geography in order to achieve the desired mix.
Additionally, credit protection is purchased on certain portions of our portfolio to enhance our overall risk management position.
The merger with Merrill Lynch will increase our concentrations to certain products and loan types.
These increases are primarily in the residential mortgage, home equity and direct/indirect portfolios.
Consumer Credit Portfolio Overall, consumer credit quality indicators deteriorated during 2008 as our customers were negatively impacted by the slowing economy.
Continued weakness in the housing markets, rising unemployment and underemployment, and tighter credit conditions resulted in rising credit risk across all our consumer portfolios.
The deterioration in the consumer credit quality indicators accelerated during the fourth quarter.
Table 15 presents our consumer loans and leases and our managed credit card portfolio, and related credit quality information.
Loans that were acquired from Countrywide that were considered impaired were written down to fair value at acquisition in accordance with SOP 03-3.
Refer to the SOP 03-3 discussion beginning on page 65 for more information.
In addition to being included in the Outstandings column below, these loans are also shown separately, net of purchase accounting adjustments, for increased transparency in the SOP 03-3 Portfolio column.


The Companies do not expect the required repayment, with interest, to the IRS of their SSCM tax benefits for 2002 through 2005 to exceed the $160 million ($147 million of which is attributable to Con Edison of New York) the Companies paid to the IRS in June 2007 as a deposit for the repayment.
Repayment of the SSCM tax benefits would not affect the Companies results of operations because deferred taxes have been previously provided for the related temporary differences between the SSCM deductions taken for federal income tax purposes and the corresponding amounts charged to expense for financial reporting purposes.
The Companies notified New York State of the closing agreement with the IRS applicable to the years 2002 through 2004 and, in December 2008, made a payment of $34 million, including interest of $12 million ($31 million,


DISH NETWORK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued F-26 In the event of a failure or loss of any of our satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other satellites and use it as a replacement for the failed or lost satellite.
Such a failure could result in a prolonged loss of critical programming or a significant delay in our plans to expand programming as necessary to remain competitive and thus may have a material adverse effect on our business, financial condition and results of operations.
Prior to 2013, certain of our satellites have experienced anomalies, some of which have had a significant adverse impact on their remaining useful life and/or commercial operation.
There can be no assurance that future anomalies will not impact the remaining useful life and/or commercial operation of any of the satellites in our fleet.
See Note 2 “Long-Lived Assets” for further discussion of evaluation of impairment.
There can be no assurance that we can recover critical transmission capacity in the event one or more of our in-orbit satellites were to fail.
We generally do not carry commercial insurance for any of the in-orbit satellites that we use, other than certain satellites leased from third parties, and therefore, we will bear the risk associated with any uninsured in-orbit satellite failures.
Recent developments with respect to certain of our satellites are discussed below.
Leased Satellites EchoStar XII.
Prior to 2010, EchoStar XII experienced anomalies resulting in the loss of electrical power available from its solar arrays, which reduced the number of transponders that could be operated.
In September 2012, November 2012, and January 2013, EchoStar XII experienced additional solar array anomalies, which further reduced the electrical power available.
During the third quarter 2013, EchoStar informed us that EchoStar XII will likely experience further loss of available electrical power that will impact its operational capability, and EchoStar reduced the remaining estimated useful life of the satellite to 18 months.
Pursuant to our satellite lease agreement with EchoStar, we are entitled to a reduction in our monthly recurring lease payments in the event of a partial loss of satellite capacity or complete failure of the satellite.
Since the number of useable transponders on EchoStar XII depends on, among other things, whether EchoStar XII is operated in CONUS which provides service to the continental United States, spot beam, or hybrid CONUS/spot beam mode, we are unable to determine at this time the actual number of transponders that will be available at any given time or how many transponders can be used during the remaining estimated life of the satellite.
This satellite is currently not in service and serves as an in-orbit spare.


| 2007 2006 2005 | Total generation(billions of KWHs) | Total purchased power(billions of KWHs) | Sources of generation(percent)— | Coal | Nuclear | Gas | Hydro | Cost of fuel, generated(cents per net KWH)— | Coal | Nuclear | Gas | Average cost of fuel, generated(cents per net KWH) | Average cost of purchased power(cents per net KWH) |


| (In millions, except per share data and ratios) 2007 (b) 2006 (c) 2005 (d) 2004 (e) 2003(f) | OPERATING RESULTS(a) | Net sales | Cost of sales | 4,234 | Other income (expense), net | Operating profit | Interest expense | Other non-operating income (expense), net | Earnings before income taxes | Income tax expense | Net earnings | EARNINGS PER COMMON SHARE | Basic | Diluted | CASH DIVIDENDS | CONDENSED BALANCE SHEET DATA | Cash and cash equivalents | Short-term investments | Other current assets | Property, plant and equipment, net | Goodwill | Purchased intangibles, net | Prepaid pension asset | Other assets | Total | Current maturities of long-term debt | Other current liabilities | Long-term debt, net | Accrued pension liabilities | Other postretirement benefit liabilities | Other liabilities | Stockholders’ equity | Total | COMMON SHARES AT YEAR-END | CASH FLOW DATA | Cash provided by operating activities | Cash used for investing activities | Cash used for financing activities | RETURN ON INVESTED CAPITAL(g) | NEGOTIATED BACKLOG |


Restricted Cash and Marketable Securities As of December 31, 2018, we had $108.1 million of restricted cash and marketable securities of which $78.6 million supports our insurance programs for workers compensation, commercial general liability, and commercial auto liability.
Additionally, we obtain funds through the issuance of tax-exempt bonds for the purpose of financing qualifying expenditures at our landfills, transfer stations, collection and recycling processing centers.
The funds are deposited directly into trust accounts by the bonding authorities at the time of issuance.
As the use of these funds is contractually restricted, and we do not have the ability to use these funds for general operating purposes, they are classified as restricted cash and marketable securities in our consolidated balance sheets.
In the normal course of business, we may be required to provide financial assurance to governmental agencies and a variety of other entities in connection with municipal residential collection contracts, closure or postclosure of landfills, environmental remediation, environmental permits, and business licenses and permits as a financial guarantee of our performance.
At several of our landfills, we satisfy financial assurance requirements by depositing cash into restricted trust funds or escrow accounts.


APACHE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The Company recognizes over the requisite service period the fair value cost determined at the grant date based on numerous assumptions, including an estimate of the likelihood that Apache’s stock price will achieve these thresholds and the expected forfeiture rate.
If a price target is not met before the end of the stated achievement period, any unamortized expense must be immediately recognized.
Since the $162 interim price target of the 2008 Share Appreciation Program was not met prior to the stated achievement period, on December 31, 2010, Apache recognized $27 million of unamortized expense and $14 million of unamortized capital costs.
The Company will recognize total expense and capitalized costs for the 2008 Share Appreciation Program of approximately $188 million through 2014.
As of March 2011, the Company had recognized $79 million of total expense and capitalized costs for the 2005 Share Appreciation Program and had no unamortized costs remaining.
A summary of the amounts recognized as expense and capitalized costs for each plan are detailed in the table below:


| $ in millions Less than 1 Year 1 - 5 Years Greater than 5 Years Total | As of December 2017 | Assets | Interest rates | Credit | Currencies | Commodities | Equities | Counterparty netting in tenors | Subtotal | Cross-tenor counterparty netting | Cash collateral netting | Total | Liabilities | Interest rates | Credit | Currencies | Commodities | Equities | Counterparty netting in tenors | Subtotal | Cross-tenor counterparty netting | Cash collateral netting | Total | As of December 2016 | Assets | Interest rates | Credit | Currencies | Commodities | Equities | Counterparty netting in tenors | Subtotal | Cross-tenor counterparty netting | Cash collateral netting | Total | Liabilities | Interest rates | Credit | Currencies | Commodities | Equities | Counterparty netting in tenors | Subtotal | Cross-tenor counterparty netting | Cash collateral netting | Total |


Reinsurance Commissions, fees and other revenue decreased 2% in 2014 reflecting a 1% unfavorable impact from foreign currency exchange rates and 1% decline in organic revenue growth due primarily to a significant unfavorable market impact in treaty, partially offset by net new business growth in treaty placements globally and growth in capital markets transactions and advisory business, as well as facultative placements.
Operating Income Operating income increased $108 million, or 7%, from 2013 to $1.6 billion in 2014.
In 2014, operating income margins in this segment were 21.0%, an increase of 120 basis points from 19.8% in 2013.
Operating margin improvement was driven by solid organic revenue growth, return on investments, expense discipline and savings related to the restructuring programs, partially offset by a $61 million unfavorable impact from foreign currency exchange rates.


| Oil (MMbls)a,b Gas (Bcf)a Total (MMBOE)a | Proved reserves: | Acquisitions of PXP and MMR | Extensions and discoveries | Revisions of previous estimates | Sale of reserves in-place | Production | Balance at December 31, 2013 | Proved developed reserves at December 31, 2013 | Proved undeveloped reserves at December 31, 2013 |


| Consolidated VIEs forWhich the Company is theInvestment Manager December 31, Other Consolidated VIEs December 31, | 2016-1 | (in millions) | Fixed maturities, available-for-sale | Fixed maturities, held-to-maturity | Trading account assets supporting insurance liabilities | Other trading account assets | Commercial mortgage and other loans | Other long-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets of consolidated VIEs | Notes issued by consolidated VIEs | Other liabilities | Total liabilities of consolidated VIEs |


| As of December | $ in millions | Deferred tax assets | Compensation and benefits | Unrealized losses | ASC 740 asset related to unrecognized tax benefits | Non-U.S. operations | Net operating losses | Occupancy-related | Other comprehensive income-related | Other, net | Subtotal | Valuation allowance | Total deferred tax assets | Depreciation andamortization | Unrealized gains | Other comprehensive income-related | Total deferred tax liabilities |


| At December 31, | 2016 | Secured loans: | Real estate—commercial | Real estate—consumer | Vehicles, RV and marine | Receivables/Inventory | Machinery/Equipment | Securities/Deposits | Other | Total secured loans and leases | Unsecured loans and leases | Total loans and leases |


Taxes on Income The effective income tax rates of 12.8% in 2011, 40.6% in 2010 and 14.8% in 2009 reflect the impacts of purchase accounting adjustments and restructuring costs, partially offset by the beneficial impact of foreign earnings.
In addition, the effective tax rate for 2011 also reflects a net favorable impact of approximately $700 million relating to the settlement of Merck’s 2002-2005 federal income tax audit, the favorable impact of certain foreign and state tax rate changes that resulted in a net $270 million reduction of deferred tax liabilities on intangibles established in purchase accounting, and the impact of the $500 million charge related to the resolution of the arbitration proceeding with J&J.
The 2010 effective tax rate reflects the impact of the Vioxx Liability Reserve for which no tax impact was recorded, a $147 million charge associated with a change in tax law that requires taxation of the prescription drug subsidy of the Company’s retiree health benefit plans which was enacted in the first quarter of 2010 as part of U. S.  health care reform legislation, and the impact of AstraZeneca’s asset option exercise.
These unfavorable impacts were partially offset by a $391 million tax benefit from changes in a foreign


| December 31 | 2009 | (Dollars in millions) | Allowance for loan and lease losses | Residential mortgage | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer | Other consumer | Total consumer | Commercial – domestic-2 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial-3 | Allowance for loan and lease losses | Reserve for unfunded lending commitments-4 | Allowance for credit losses-5 |


| Year Ended December 31, | Qualified Plan | (in millions) | Fair value of plan assets as of January 1 | Actual return (loss) on plan assets | Employer contributions | Settlements | Divestitures | Benefits and administrative expenses paid | Fair value of plan assets as of December 31 | Projected benefit obligation | Pension asset (obligation) | Accumulated benefit obligation |


| Payment Period | Contractual Obligations | Debt-1 | Operating Leases | Purchase Obligations-2 | $11,320 |


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


| Continuing Operations | Operating Income | 2016 GAAP | 2015 GAAP | Change GAAP | % Change GAAP | 2016 GAAP | Business separation costs(C) | Tax costs associated with businessseparation(C) | Business restructuring and cost reduction actions | Pension settlement loss | Loss on extinguishment of debt(D) | 2016 Non-GAAP Measure | 2015 GAAP | Business separation costs(C) | Business restructuring and cost reduction actions | Pension settlement loss | Gain on previously held equity interest | Gain on land sales(E) | Loss on extinguishment of debt(D) | 2015 Non-GAAP Measure | Change Non-GAAP Measure | % Change Non-GAAP Measure | Continuing Operations | Operating Income | 2015 GAAP | 2014 GAAP | Change GAAP | % Change GAAP | 2015 GAAP | Business separation costs(C) | Business restructuring and cost reduction actions | Pension settlement loss | Gain on previously held equity interest | Gain on land sales(E) | Loss on extinguishment of debt(D) | 2015 Non-GAAP Measure | 2014 GAAP | Business restructuring and cost reduction actions | Pension settlement loss | Goodwill and intangible asset impairmentcharge(F) | Chilean tax rate change | Tax election benefit | 2014 Non-GAAP Measure | Change Non-GAAP Measure | % Change Non-GAAP Measure |


MW Mamonal plant.
Approximately $77 million of the purchase price was allocated to goodwill and is being amortized over 32 years.
The TermoCandelaria power plant has been included in discontinued operations in the accompanying consolidated financial statements.
The table below presents supplemental unaudited pro forma operating results as if all of the acquisitions had occurred at the beginning of the periods shown (in millions, except per share amounts).
No pro forma operating results are provided for 2001, because the impact would not have been material.
The pro forma amounts include certain adjustments, primarily for depreciation and amortization based on the allocated purchase price and additional interest expense:


| Year Ended | January 31, 2010 | Revenue: | Customer A | Customer B | Customer C |


| 2015 2014 2013 | Balance as of January 1 | Amounts charged to expense | Amounts written off | Recoveries of amounts written off | Balance as of December 31 |


(1) Includes $53 million of mortgage debt denominated in foreign currency at December 31, 2018.
(2) Includes $57 million of debt that has recourse only to real estate property held for investment by subsidiaries at December 31, 2018.
(3) Includes Prudential Financial debt of $1,115 million and $880 million at December 31, 2018 and 2017, respectively.
(4) Excludes the current portion of long-term debt.
At December 31, 2018 and 2017, the Company was in compliance with all covenants related to the above debt.
Commercial Paper Prudential Financial has a commercial paper program with an authorized capacity of $3.0 billion.
Prudential Financial’s commercial paper borrowings have generally been used to fund the working capital needs of Prudential Financial’s subsidiaries and provide short-term liquidity at Prudential Financial.
Prudential Funding, LLC (“Prudential Funding”), a wholly-owned subsidiary of Prudential Insurance, has a commercial paper program, with an authorized capacity of $7.0 billion.
Prudential Funding commercial paper borrowings generally have served as an additional source of financing to meet the working capital needs of Prudential Insurance and its subsidiaries.
Prudential Funding also lends to other subsidiaries of Prudential Financial up to limits agreed with the NJDOBI.
Prudential Funding maintains a support agreement with Prudential Insurance whereby Prudential Insurance has agreed to maintain Prudential Funding’s tangible net worth at a positive level.
Additionally, Prudential Financial has issued a subordinated guarantee covering Prudential Funding’s $7.0 billion commercial paper program.
In order to reduce earnings volatility from foreign currency exchange rate movements, we enter into forward currency derivative contracts to effectively fix the currency exchange rates for a portion of our prospective non-USD-denominated earnings streams.
This forward currency hedging program is primarily associated with our insurance operations in Japan and Korea.
In order to reduce equity volatility from foreign currency exchange rate movements, we primarily utilize a yen hedging strategy that calibrates the hedge level to preserve the relative contribution of our yen-based business to the Company’s overall return on equity on a leverage neutral basis.
We implement this hedging strategy utilizing a variety of instruments, including USD-denominated assets, foreign currency derivative contracts, and dual currency and synthetic dual currency investments held locally in our Japanese insurance subsidiaries.
The total hedge level may vary based on our periodic assessment of the relative contribution of our yen-based business to the Company’s overall return on equity.
The table below presents the aggregate amount of instruments that serve to hedge the impact of foreign currency exchange movements on our USD-equivalent shareholder return on equity from our Japanese insurance subsidiaries as of the dates indicated.


| December 31, 2008 Outstandings Year Ended December 31, 2008  SOP 03-3 Net Charge-offs-1 | (Dollars in millions) | California | Florida | Virginia | Maryland | Texas | Other U.S. / Foreign | Total SOP 03-3 residential mortgage loans | December 31, 2008 Outstandings | (Dollars in millions) | California | Florida | Arizona | Virginia | Colorado | Other U.S. / Foreign | Total SOP 03-3 home equity loans |


| For the fiscal years ended June 30, | 2019 | (in millions, except %) | Foxtel(a) | Other equity affiliates, net(b) | Total Equity losses of affiliates |


| December 31, | 2015 | Deferred tax assets: | Postretirement benefits other than pensions | Rent expense | Alternative minimum tax credit carryforwards | Operating loss carryforwards | Pensions | Loyalty program obligation | Gains from lease transactions | Reorganization items | Other | Total deferred tax assets | Valuation allowance | Net deferred tax assets | Deferred tax liabilities: | Accelerated depreciation and amortization | Other | Total deferred tax liabilities | Net deferred tax asset (liability) |


| 12/29/2007 1/3/2009 1/2/2010 1/1/2011 12/31/2011 12/29/2012 | Cadence Design Systems, Inc. | NASDAQ Composite | S&P 400 Information Technology | Sale Prices | High | 2016 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2017 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Declaration Date | February 19, 2015 | May 28, 2015 | August 27, 2015 | October 29, 2015 | February 17, 2016 | May 25, 2016 | July 27, 2016 | October 31, 2016 | February 15, 2017 | May 24, 2017 | July 27, 2017 | October 24, 2017 |


| 2014 2015 2016 2017 2018 2019 | JKHY | 2019 Peer Group | 2018 Peer Group | S&P 500 |


Provision for Income Taxes (in millions, except percentages):


| Actuarial Assumption Change in Assumption Impact on 2018 Qualified Pension Cost Increase/(Decrease) Impact on 2017 Qualified Projected Benefit Obligation | Discount rate | Rate of return on plan assets | Rate of increase in compensation |


| Contractual amount Carrying value(h) | 2012 | By remaining maturity at December 31,(in millions) | Lending-related | Consumer, excluding credit card: | Home equity – senior lien | Home equity – junior lien | Prime mortgage | Subprime mortgage | Auto | Business banking | Student and other | Total consumer, excluding credit card | Credit card | Total consumer | Wholesale: | Other unfunded commitments to extend credit(a)(b) | Standby letters of credit and other financial guarantees(a)(b)(c)(d) | Unused advised lines of credit | Other letters of credit(a)(d) | Total wholesale | Total lending-related | Other guarantees and commitments | Securities lending indemnification agreements and guarantees(e) | Derivatives qualifying as guarantees | Unsettled reverse repurchase and securities borrowing agreements(f) | Loan sale and securitization-related indemnifications: | Mortgage repurchase liability | Loans sold with recourse | Other guarantees and commitments(g) |


Our liquidity is also affected by restricted cash balances that are pledged as collateral or restricted to use for vendor payables, general liability insurance, workers compensation insurance and customer warranty and insurance programs.
Restricted cash and cash equivalents, which are included in other current assets, were $488 million and $482 million at February 26, 2011, and February 27, 2010, respectively.
Capital Expenditures A component of our long-term strategy is our capital expenditure program.
This program includes, among other things, investments in new stores, store remodeling, store relocations and expansions, new distribution facilities and information technology enhancements.
During fiscal 2011, we invested $744 million in property and equipment, including opening 147 new stores, expanding and remodeling certain stores, and upgrading our information technology systems and capabilities.
The 21.0% increase in our capital expenditures compared to the prior fiscal year was due primarily to increased spending on information technology and additional store-related projects.
The following table presents our capital expenditures for each of the past three fiscal years ($ in millions):


| December 31, | (in thousands) | Class A common stock authorized | Class A common stock issued and outstanding | Class B-1 common stock authorized, issued and outstanding | Class B-2 common stock authorized, issued and outstanding | Class B-3 common stock authorized, issued and outstanding | Class B-4 common stock authorized, issued and outstanding |


| Significant Unobservable Input Unobservable Inputs (Minimum) Unobservable Inputs (Maximum) Impact of Increase in Inputon Fair Value Measurement [1] | Withdrawal Utilization [2] | Withdrawal Rates [3] | Lapse Rates [4] | Reset Elections [5] | Equity Volatility [6] |


| Americas Europe, Middle East and Africa Asia-Pacific | Argentina | Brazil | Canada | Chile | Colombia | Costa Rica | Ecuador | Guatemala | Mexico | Peru | Uruguay | Venezuela | Luxembourg |


| For the years ended December 31, 2011 2010 2009 | In thousands of dollars | Net income | Depreciation and amortization | Stock-based compensation and excess tax benefits | Deferred income taxes | Gain on sale of trademark licensing rights, net of tax | Business realignment and impairment charges, net of tax | Contributions to pension plans | Working capital | Changes in other assets and liabilities | Net cash provided from operating activities |


| December 31 | (Dollars in millions) | Consumer | Residential mortgage | Home equity | Discontinued real estate | Direct/Indirect consumer | Other consumer | Total consumer-2 | Commercial | U.S. commercial-3 | Commercial real estate | Commercial lease financing | Non-U.S.commercial | 9,632 | U.S. small business commercial | Total commercial-4 | Total nonperforming loans and leases | Foreclosed properties | Total nonperforming loans, leases and foreclosed properties-5 |


| in thousands 2011 2010 2009 | Discontinued Operations | Pretax earnings (loss) from results | Gain on disposal, net of transaction bonus | Income tax (provision) benefit | Earnings on discontinued operations, net of income taxes |


Dividends.
During 2007, 2006 and 2005, we declared and paid shareholder dividends of $121.4 million, $39.0 million and $25.4 million, respectively.
As an insurance holding company, we are partially dependent on dividends and other permitted payments from our subsidiaries to pay cash dividends to our shareholders.
The payment of dividends to Group by Holdings and to Holdings by Everest Re is subject to Delaware regulatory restrictions and the payment of dividends to Group by Bermuda Re is subject to Bermuda insurance regulatory restrictions.
Management expects that, absent extraordinary catastrophe losses, such restrictions should not affect Everest Res ability to declare and pay dividends sufficient to support Holdings general corporate needs and that Holdings and Bermuda Re will have the ability to declare and pay dividends sufficient to support Groups general corporate needs.
For the years ended December 31, 2007, 2006 and 2005, Everest Re paid dividends to Holdings of $245.0 million, $100.0 million and $75.0 million, respectively.
For the years ended December 31, 2007, 2006 and 2005, Bermuda Re paid dividends to Group of $0.0 million, $60.0 million and $45.0 million, respectively.
See ITEM 1, Business  Regulatory Matters  Dividends and Note 16 of Notes to Consolidated Financial Statements.


from those currently anticipated and expressed in such forward-looking statements as a result of a number of factors, including those we discuss under
“Risk Factors” and elsewhere in this Form 10-K.  You should read
“Risk Factors” and
“Forward-Looking Statements.
” Executive Overview General American Water Works Company, Inc.  (herein referred to as “American Water” or the “Company”) is the largest investor-owned United States water and wastewater utility company, as measured both by operating revenues and population served.
Our approximately 6,400 employees provide drinking water, wastewater and other water related services to an estimated 15 million people in 47 states and in one Canadian province.
Our primary business involves the ownership of water and wastewater utilities that provide water and wastewater services to residential, commercial, industrial and other customers.
Our Regulated Businesses that provide these services are generally subject to economic regulation by state regulatory agencies in the states in which they operate.
The federal government and the states also regulate environmental, health and safety and water quality matters.
Our Regulated Businesses provide services in 16 states and serve approximately 3.2 million customers based on the number of active service connections to our water and wastewater networks.
We report the results of these businesses in our Regulated Businesses segment.
We also provide services that are not subject to economic regulation by state regulatory agencies.
We report the results of these businesses in our Market-Based Operations segment.
In 2014, we continued the execution of our strategic goals.
Our commitment to growth through investment in our regulated infrastructure and expansion of our regulated customer base and our Market-Based Operations, combined with operational excellence led to continued improvement in regulated operating efficiency, improved performance of our Market-Based Operations, and enabled us to provide increased value to our customers and investors.
During the year, we focused on growth, addressed regulatory lag, made more efficient use of capital and improved our regulated operation and maintenance (“O&M”) efficiency ratio.2014 Financial Results For the year ended December 31, 2014, we continued to increase net income, while making significant capital investment in our infrastructure and implementing operational efficiency improvements to keep customer rates affordable.
Highlights of our 2014 operating results compared to 2013 and 2012 include:


| 2018 $27,000 | 2019 | 2020 | 2021 | 2022 | 2023 and thereafter | Total scheduled maturities of long term debt | Current maturities of long term debt |


website at www.
hrblock.
com and www.
taxcut.
com.
These websites allow clients to prepare their federal and state income tax returms using the TaxCut Online Tax Program, access tax tips, advice and tax-related news and use calculators for tax planning.
Beginning with the fiscal year 2003 tax season, we participated in the Free File Alliance (FFA).
This aliance was created by the tax returm preparation industry and the IRS, and allows qualified filers to prepare and file their federal returm online at no charge.
We feel that this program provides a valuable public service and increases our visibility with new clients, while also providing an opportunity to offer our state return preparation services to these new clients at our regular prices.
CASHBACK PROGRAM - We offer a refund discount (CashBack) program to our customers in Canada.
Canadian law specifies the procedures we must follow in conducting the program.
In accordance with current Canadian regulations, if a customer's tax return indicates the customer is entitled to a tax refund, we issue a check to the client.
The client assigns to us the full amount of the tax refund to be issued by the Canada Revenue Agency (CRA) and the refund check is then sent by the CRA directly to us.
In accordance with the law, the discount is deemed to include both the tax return preparation fee and the fee for tax refund discounting.
This program is financed by short-term borrowings.
The number of returns discounted under the CashBack program in fiscal year 2006 was approximately 653,000, compared to 581,000 in 2005 and 552,000 in 2004.
See discussion of the Canadian tax season extension under“Seasonality of Business.
CUENTS SERVED - We, together with our franchisees, served approximately 21 .9 million clients worldwide during fiscal year 2006, compared to 21.4 million in 2005 and 21.6 million in 2004.
See discussion of the Canadian tax season extension under“Seasonality of Business. '
We served 19.5 million clients in the U. S.  during fiscal year 2006, compared to 19.1 million in 2005 and 19.3 million in 2004.
“Clients served" includes taxpayers for whom we prepared income tax returns in offices, federal software units sold, online completed and paid federal retums, paid state returms when no federal return was purchased, and taxpayers for whom we provided only paid electronic fling services.
Our U. S.  clients served constituted 15.7% of an IRS estimate of total individual income tax returms filed as of April 30, 2006, compared to 15.0% in 2005 and 15.7% in 2004.


| Amount Ratios | December 31 Dollars in millions | Risk-based capital | Tier 1 | PNC | PNC Bank, N.A. | National City Bank (a) | Total | PNC | PNC Bank, N.A. | National City Bank (a) | Leverage | PNC | PNC Bank, N.A. | National City Bank (a) |


| 3/31/2006 3/31/2007 3/31/2008 3/31/2009 3/31/2010 3/31/2011 | ABIOMED, Inc | Nasdaq Composite Index | Nasdaq Medical Equipment SIC Code 3840-3849 | (in 000s, except per share amounts) | April 30, | Revenues | Net income from continuing operations | Net income (loss) | Basic earnings (loss) per share: | Net income from continuing operations | Net income (loss) | Diluted earnings (loss) per share: | Net income from continuing operations | Net income (loss) | Total assets | Long-term debt | Dividends per share-1 |


| Class A Class B | (Shares in thousands) | Balance at June 30, 2005 | Acquisition of treasury stock | Conversion of Class B to Class A | Stock-based compensation | Balance at June 30, 2006 | Acquisition of treasury stock | Conversion of Class B to Class A | Stock-based compensation | Balance at June 30, 2007 | Acquisition of treasury stock | Conversion of Class B to Class A | Stock-based compensation | Balance at June 30, 2008 |


| Outstandings-1December 31 Purchased Impaired Portfolio Net Charge-offs-1, 2Year Ended December 31 | (Dollars in millions) | California | Florida | Virginia | Maryland | Texas | Other U.S./Foreign | Total Countrywide purchased impaired residential mortgage loan portfolio |


Other Income (Expense) Other income (expense) consists principally of investment income and interest expense.
Investment income is derived from the Companys cash, cash equivalents, restricted deposits and investments.
For the year ended December 31, 2002, investment income included a $5,100 one-time dividend from a captive insurance company in which the Company maintained an investment.
Income Taxes Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases.
Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.
The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date of the tax rate change.
Stock-Based Compensation The Company accounts for stock-based compensation plans in accordance with the intrinsic value based method of Accounting Principles Board Opinion No.25 as permitted by SFAS No.123 and SFAS No.148.
Compensation cost related to stock options issued to employees is calculated on the date of grant only if the current market price of the underlying stock exceeds the exercise price.
Compensation expense is then recognized on a straight-line basis over the vesting period, generally five years.
The Company recognized $188, $270 and $6 during the years ended December 31, 2003, 2002 and 2001, respectively, for stock-based compensation expense.
Had compensation cost for the plans been determined based on the fair value method at the grant dates as specified in SFAS No.123, the Companys net earnings would have been reduced to the following pro forma amounts:


Inventories, net: Merchandise Inventory The Company used the LIFO method of accounting for approximately 95% of inventories at December 31, 2011 and January 1, 2011.
Under LIFO, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in Fiscal 2011 and prior years.
As a result of utilizing LIFO, the Company recorded an increase to cost of sales of $24,708 for Fiscal 2011 due to an increase in supply chain costs and inflationary pressures affecting certain product categories.
The Company recorded a reduction to cost of sales of $29,554 and $16,040 for Fiscal 2010 and 2009, respectively.
Prior to Fiscal 2011, the Company’s overall costs to acquire inventory for the same or similar products generally decreased historically as the Company has been able to leverage its continued growth, execution of merchandise strategies and realization of supply chain efficiencies.
Product Cores The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries, which are valued under the first-in, first-out ("FIFO") method.
Product cores are included as part of the Company's merchandise costs and are either passed on to the customer or returned to the vendor.
Because product cores are not subject to frequent cost changes like the Company's other merchandise inventory, there is no material difference when applying either the LIFO or FIFO valuation method.
Inventory Overhead Costs Purchasing and warehousing costs included in inventory, at FIFO, at December 31, 2011 and January 1, 2011, were $126,840 and $103,989, respectively.
Inventory Balance and Inventory Reserves Inventory balances at year-end for Fiscal 2011 and 2010 were as follows:


| Year ended December 31,(in millions, except ratios) 2012 2011 2010 | Revenue | Card income | All other income | Noninterest revenue | Net interest income | Total net revenue | Provision for credit losses | Noninterest expense | Income before income tax expense | Net income | Overhead ratio |


| Company/Index 12/31/2012 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 | McDonald's Corporation | S&P 500 Index | Dow Jones Industrials |


| 2017 2016 | DecommissioningTrust Fair Values | (In Millions) | Utility: | ANO 1 and ANO 2 | River Bend | Waterford 3 | Grand Gulf | Entergy Wholesale Commodities |


Lockheed Martin Corporation of the investment has declined below our carrying value, and that decline is viewed to be other than temporary.
For publicly traded companies, the fair value of the equity securities is determined by multiplying the number of shares we own by the stock price, as well as by computing estimates of the fair values based on a variety of valuation methods (e. g. , discounted cash flow analyses, sum-of-the-parts valuations and trading multiples).
For those companies that are not publicly traded, we prepare discounted cash flow analyses to compute an estimate of the fair value of the investment.
Since we generally do not have access to internal projections of those companies, we prepare projections based on information that is publicly available.
We use judgment in computing the fair value based on our evaluation of the investee and establishing an appropriate discount rate and terminal value to apply in the calculations.
In selecting these and other assumptions, we consider the investees ability to execute their business plan successfully, including their ability to obtain required funding, general market conditions, and industry considerations specific to their business.
It is likely that we could compute a materially different fair value for an investment if different assumptions were used or if circumstances were to change.
Many of our investments are concentrated in the satellite services and telecommunications industries, including Intelsat, Ltd.  (Intelsat), Inmarsat Ventures plc (Inmarsat) and New Skies Satellites, N. V.  (New Skies).
These industries continue to be affected by the capital markets, excess satellite capacity and competition from other kinds of telecommunications services, including fiber optic cable and other wireless communication technologies.
This has been evidenced by recent bankruptcy filings by some telecommunications companies.
Intelsat, Inmarsat and New Skies are also subject to regulation by the Federal Communications Commission (FCC).
FCC decisions and policies have had, and may continue to have, a significant impact on these companies.
In 2000, Congress passed the OpenMarket Reorganization for the Betterment of International Telecommunications Act (the ORBIT Act) that, among other things, established deadlines for Intelsat and Inmarsat to complete their initial public offerings.
Under the ORBIT Act, Intelsat and Inmarsat were required to complete their initial public offerings by December 31, 2002.
However, Inmarsat has received an extension from the FCC until June 30, 2003.
In October 2002, legislation was enacted which extends the deadline for Intelsat to complete its initial public offering to December 31, 2003, or June 30, 2004 if approved by the FCC.
Unless there are changes in the current trends and market conditions in the telecommunications industry, as well as in the capital markets, Intelsat and Inmarsat may have difficulty in completing their initial public offerings by the ORBIT Act deadlines.
If those deadlines are not met or extended by further amendments to the legislation, the FCC may limit access by U. S.  users to the satellite capacity of the privatized entities for some services.
If this were to occur, the value of our investments could be adversely affected.
In the fourth quarter 2002, as part of the ongoing evaluation of our ability to recover our investments, we calculated an estimate of the current fair values of our investments in Intelsat and Inmarsat.
For our investment in New Skies, we calculated the current fair value based on the publicly traded stock price and, for analysis purposes, also calculated an estimate of the fair value using discounted cash flow analyses.
In each case, the fair value of our investment was less than our carrying amount.
We then made an assessment as to whether the decline in the value of these investments was other than temporary.
We reviewed investment analyst reports to the extent they were available.
We also assessed future business prospects for the companies and reviewed information regarding market and industry trends for their businesses.
Based on our evaluation, including the factors discussed above, we determined that the decline in values of these investments was other than temporary, and recorded impairment charges related to these investments in the fourth quarter of 2002.
The impact of the unusual charges on operating profit (earnings from continuing operations before interest and taxes), net earnings and diluted earnings per share was as follows:


Notes to consolidated financial statements Credit and funding adjustments When determining the fair value of an instrument, it may be necessary to record adjustments to the Firms estimates of fair value in order to reflect counterparty credit quality, the Firms own creditworthiness, and the impact of funding: ?
Credit valuation adjustments (CVA) are taken to reflect the credit quality of a counterparty in the valuation of derivatives.
CVA are necessary when the market price (or parameter) is not indicative of the credit quality of the counterparty.
As few classes of derivative contracts are listed on an exchange, derivative positions are predominantly valued using models that use as their basis observable market parameters.
An adjustment therefore may be necessary to reflect the credit quality of each derivative counterparty to arrive at fair value.
The Firm estimates derivatives CVA using a scenario analysis to estimate the expected credit exposure across all of the Firms positions with each counterparty, and then estimates losses as a result of a counterparty credit event.
The key inputs to this methodology are (i) the expected positive exposure to each counterparty based on a simulation that assumes the current population of existing derivatives with each counterparty remains unchanged and considers contractual factors designed to mitigate the Firms credit exposure, such as collateral and legal rights of offset; (ii) the probability of a default event occurring for each counterparty, as derived from observed or estimated CDS spreads; and (iii) estimated recovery rates implied by CDS, adjusted to consider the differences in recovery rates as a derivative creditor relative to those reflected in CDS spreads, which generally reflect senior unsecured creditor risk.
As such, the Firm estimates derivatives CVA relative to the relevant benchmark interest rate.  ?
DVA is taken to reflect the credit quality of the Firm in the valuation of liabilities measured at fair value.
The DVA calculation methodology is generally consistent with the CVA methodology described above and incorporates JPMorgan Chases credit spread as observed through the CDS market to estimate the probability of default and loss given default as a result of a systemic event affecting the Firm.
Structured notes DVA is estimated using the current fair value of the structured note as the exposure amount, and is otherwise consistent with the derivative DVA methodology.  ?
The Firm incorporates the impact of funding in its valuation estimates where there is evidence that a market participant in the principal market would incorporate it in a transfer of the instrument.
As a result, the fair value of collateralized derivatives is estimated by discounting expected future cash flows at the relevant overnight indexed swap (OIS) rate given the underlying collateral agreement with the counterparty.
Effective in 2013, the Firm implemented a FVA framework to incorporate the impact of funding into its valuation estimates for uncollateralized (including partially collateralized) over the-counter (OTC) derivatives and structured notes.
The Firms FVA framework leverages its existing CVA and DVA calculation methodologies, and considers the fact that the Firms own credit risk is a significant component of funding costs.
The key inputs are: (i) the expected funding requirements arising from the Firms positions with each counterparty and collateral arrangements; (ii) for assets, the estimated market funding cost in the principal market; and (iii) for liabilities, the hypothetical market funding cost for a transfer to a market participant with a similar credit standing as the Firm.
Upon the implementation of the FVA framework in 2013, the Firm recorded a one time $1.5 billion loss in principal transactions revenue that was recorded in the CIB.
While the FVA framework applies to both assets and liabilities, the loss on implementation largely related to uncollateralized derivative receivables given that the impact of the Firms own credit risk, which is a significant component of funding costs, was already incorporated in the valuation of liabilities through the application of DVA.


| Year Ended December 31 | 2017 | (Dollars in millions) | Allowance for loan losses (GAAP) | Less: Direct energy portion | Adjusted allowance for loan losses (non-GAAP) | Total non-accrual loans, excluding loans held for sale (GAAP) | Less: Direct energy non-accrual loans | Adjusted total non-accrual loans, excluding loans held for sale (non-GAAP) | Allowance for loan losses to non-performing loans, excluding loans held for sale (GAAP) | Adjusted allowance for loan losses to non-performing loans, excluding loans held for sale (non-GAAP) |


| As of December 31, | 2009 | (in millions) | Balance Sheet Data: | Total investments excluding policy loans | Separate account assets | Total assets | Future policy benefits and policyholders’ account balances | Separate account liabilities | Short-term debt | Long-term debt | Total liabilities | Prudential Financial, Inc. equity-2 | Noncontrolling interests | Total equity-2 |


In connection with its pricing practices, the Company is the subject of an antitrust investigation by the Canadian Competition Bureau.
In addition, the U. S.  Department of Justice notified the Company that it opened an inquiry but has not requested any information or documents.
The European Commission had requested information, but subsequently informed the Company that it had closed its file.
We also are party to approximately 90 related civil antitrust suits in the United States and 14 in Canada.
Certain of these claims contain class action allegations, instituted on behalf of direct purchasers of our products as well as indirect purchasers that purchase our products for use or for resale.
These suits allege conspiracies in restraint of trade in connection with the pricing practices of the Company.
Several other chocolate and confectionery companies are the subject of investigations and/or inquiries by the government entities referenced above and have also been named as defendants in the same litigation.
One Canadian wholesaler is also a subject of the Canadian investigation.
While it is not feasible to predict the final outcome of these proceedings, in our opinion they should not have a material adverse effect on the financial position, liquidity or results of operations of the Company.
The Company is cooperating with the government investigations and inquiries and intends to defend the lawsuits vigorously.
We have no other material pending legal proceedings, other than ordinary routine litigation incidental to our business.


| Global Networks International Subscribers  (millions) Regional Networks International Subscribers  (millions) | Discovery Channel | Animal Planet | TLC, Real Time and Travel & Living | Discovery Science | Discovery Home & Health | Turbo | Discovery World | Investigation Discovery | HD Services |


MARATHON OIL CORPORATION Notes to Consolidated Financial Statements Preferred shares  In connection with the acquisition of Western discussed in Note 6, the Board of Directors authorized a class of voting preferred stock consisting of 6 million shares.
Upon completion of the acquisition, we issued 5 million shares of this voting preferred stock to a trustee, who holds the shares for the benefit of the holders of the Exchangeable Shares discussed above.
Each share of voting preferred stock is entitled to one vote on all matters submitted to the holders of Marathon common stock.
Each holder of Exchangeable Shares may direct the trustee to vote the number of shares of voting preferred stock equal to the number of shares of Marathon common stock issuable upon the exchange of the Exchangeable Shares held by that holder.
In no event will the aggregate number of votes entitled to be cast by the trustee with respect to the outstanding shares of voting preferred stock exceed the number of votes entitled to be cast with respect to the outstanding Exchangeable Shares.
Except as otherwise provided in our restated certificate of incorporation or by applicable law, the common stock and the voting preferred stock will vote together as a single class in the election of directors of Marathon and on all other matters submitted to a vote of stockholders of Marathon generally.
The voting preferred stock will have no other voting rights except as required by law.
Other than dividends payable solely in shares of voting preferred stock, no dividend or other distribution, will be paid or payable to the holder of the voting preferred stock.
In the event of any liquidation, dissolution or winding up of Marathon, the holder of shares of the voting preferred stock will not be entitled to receive any assets of Marathon available for distribution to its stockholders.
The voting preferred stock is not convertible into any other class or series of the capital stock of Marathon or into cash, property or other rights, and may not be redeemed.26.


| 2012 2011 2010 | Noncontrolling Interests | Balance at beginning of period | Acquired noncontrolling interests | Dividends attributable to noncontrolling interests | Net income attributable to noncontrolling interests | Balance at end of period |


| OperatingRevenues(In millions) % of Total Number ofCustomers % of Total EstimatedPopulationServed(In millions) % of Total | New Jersey | Pennsylvania | Illinois(a) | Missouri | Indiana | California | West Virginia(b) | Subtotal (Top Seven States) | Other(c) | Total Regulated Businesses |


credits from a one time distribution in fiscal year 2017.
Significant impacts of the Tax Cuts and Jobs Act include a reduction in the U. S.  federal income tax rate from 35% to 24.5%, partially offset with a tax on the deemed repatriation of undistributed foreign earnings, and a remeasurement of our net deferred tax assets.
Several provisions of the Tax Cuts and Jobs Act are not effective for us until fiscal year 2019, including a further reduction in the U. S.  federal income tax rate to 21%, a deduction for foreign derived intangible income, repeal of the deduction for income attributable to domestic production activities, and a tax on global intangible low-taxed income.
The decrease in the effective tax rate from fiscal year 2016 to 2017 was primarily due to the impact of foreign income, and foreign tax credits from a one time distribution of prior year foreign earnings, partially offset with a benefit recorded in fiscal year 2016 from the retroactive extension of the United States Federal Credit for Increasing Research Activities.
We record a valuation allowance to reduce our deferred tax assets to the amount we believe is more-likely-than-not to be realized.
In making these determinations we consider historical and projected taxable income, and ongoing prudent and feasible tax planning strategies in assessing the appropriateness of a valuation allowance.
The net increase in the valuation allowance of $4.6 million for fiscal year 2018 and $3.6 million for fiscal year 2017 was primarily related to tax net operating losses incurred in certain foreign jurisdictions, and state tax credit carryforwards.
Our net deferred tax assets as of September 30, 2018, 2017 and 2016 were $33.4 million, $53.2 million and $49.4 million, respectively.
Our worldwide effective tax rate may fluctuate based on a number of factors, including variations in projected taxable income in the various geographic locations in which we operate, changes in the valuation of our net deferred tax assets, resolution of potential exposures, tax positions taken on tax returns filed in the various geographic locations in which we operate, and the introduction of new accounting standards or changes in tax laws or interpretations thereof in the various geographic locations in which we operate.
We have recorded liabilities to address potential tax exposures related to business and income tax positions we have taken that could be challenged by taxing authorities.
The ultimate resolution of these potential exposures may be greater or less than the liabilities recorded which could result in an adjustment to our future tax expense.


Entergy Corporation and Subsidiaries Notes to Financial Statements Entergy New Orleans Securitization Bonds - Hurricane Isaac In May 2015 the City Council issued a financing order authorizing the issuance of securitization bonds to recover Entergy New Orleanss Hurricane Isaac storm restoration costs of $31.8 million, including carrying costs, the costs of funding and replenishing the storm recovery reserve in the amount of $63.9 million, and approximately $3 million of up-front financing costs associated with the securitization.
In July 2015, Entergy New Orleans Storm Recovery Funding I, L. L. C. , a company wholly owned and consolidated by Entergy New Orleans, issued $98.7 million of storm cost recovery bonds.
The bonds have a coupon of 2.67% and an expected maturity date of June 2024.
Although the principal amount is not due until the date given above, Entergy New Orleans Storm Recovery Funding expects to make principal payments on the bonds over the next five years in the amounts of $11.4 million for 2016, $10.6 million for 2017, $11 million for 2018, $11.2 million for 2019, and $11.6 million for 2020.
With the proceeds, Entergy New Orleans Storm Recovery Funding purchased from Entergy New Orleans the storm recovery property, which is the right to recover from customers through a storm recovery charge amounts sufficient to service the securitization bonds.
The storm recovery property is reflected as a regulatory asset on the consolidated Entergy New Orleans balance sheet.
The creditors of Entergy New Orleans do not have recourse to the assets or revenues of Entergy New Orleans Storm Recovery Funding, including the storm recovery property, and the creditors of Entergy New Orleans Storm Recovery Funding do not have recourse to the assets or revenues of Entergy New Orleans.
Entergy New Orleans has no payment obligations to Entergy New Orleans Storm Recovery Funding except to remit storm recovery charge collections.


| 2010 Entergy Arkansas Entergy Gulf States Louisiana Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy | (In Thousands) | Deferred tax liabilities: | Plant basis differences - net | Regulatory asset for income taxes - net | Power purchase agreements | Nuclear decommissioning trusts | Deferred fuel | Other | Total | Deferred tax assets: | Accumulated deferred investment | tax credits | Pension and OPEB | Nuclear decommissioning liabilities | Sale and leaseback | Provision for regulatory adjustments | Unbilled/deferred revenues | Customer deposits | Rate refund | Net operating loss carryforwards | Other | Total | Noncurrent accrued taxes (including | unrecognized tax benefits) | Accumulated deferred income | taxes and taxes accrued |


(1) The number of restricted stock units vested includes shares withheld on behalf of employees to satisfy statutory tax withholding requirements.
The total vesting date fair value of stock award units that vested was approximately $60 million in 2012, $71 million in 2011 and $62 million in 2010.
Market-based DSU Awards During 2012, 2011 and 2010, we granted market-based DSU awards to certain members of our senior management team.
The attainment of these stock units is based on our total shareholder return (TSR) as compared to the TSR of the companies in the S&P 500 Health Care Index and is measured in three annual performance cycles.
In addition, award recipients must remain employed by us throughout the three-year measurement period to attain the full award.
We determined the fair value of the 2012 market-based awards to be approximately $8 million and the fair value of the 2011 market-based awards to be approximately $8 million, based on Monte Carlo simulations, utilizing the following assumptions:


21.
Employee Benefit Plans Profit Sharing Retirement Savings Plans The Company sponsors three defined contribution benefit plans covering substantially all eligible employees in the U. S.  and Puerto Rico who are not covered by a collective bargaining agreement.
The plans include a savings plan feature under Section 401(k) of the Internal Revenue Code.
The Company makes discretionary contributions to the plans and contributes an amount equal to 50% of the first 6% of salary contributed by an employee.
Under the terms of the plans, a participant is 100% vested in Company matching and discretionary contributions after five years of credited service.
Contributions made by the Company under these plans approximated $8 million in Fiscal 2011 and $6 million in each of Fiscal 2010 and Fiscal 2009.  International Defined Benefit Plans The Company sponsors certain single-employer defined benefit plans and cash balance plans at international locations which are not considered to be material individually or in the aggregate.
Pension benefits under these plans are based on formulas that reflect the employees’ years of service and compensation levels during their employment period.
The aggregate funded status of the single-employer defined benefit plans were net liabilities of $1.7 million and $5.1 million as of April 2, 2011 and April 3, 2010, respectively, and were primarily recorded within other non-current liabilities in the Company’s consolidated balance sheets.
These single-employer defined benefit plans had aggregate projected benefit obligations of $33.6 million and aggregate fair values of plan assets of $31.9 million as of April 2, 2011, compared to projected benefit obligations of $25.4 million and aggregate fair values of plan assets of $22.5 million as of April 3, 2010.
The asset portfolio of the single-employer defined benefit plans primarily consists of debt securities, which have been measured at fair value largely using Level 2 inputs, as defined in Note 15.
Pension expense for these plans, recorded within SG&A expenses in the Company’s consolidated statements of operations, was $1.8 million in Fiscal 2011, $4.2 million in Fiscal 2010 and $4.0 million in Fiscal 2009.
Union Pension Plan The Company participates in a multi-employer pension plan and is required to make contributions to the UNITE HERE (which was previously known as the Union of Needletrades, Industrial and Textile Employees, prior to its merger with the Hotel Employees and Restaurant Employees International Union) (“Union”) for dues based on wages paid to union employees.
A portion of these dues is allocated by the Union to a retirement fund which provides defined benefits to substantially all unionized workers.
The Company does not participate in the management of the plan and has not been furnished with information with respect to the type of benefits provided, vested and non-vested benefits or assets.


| Payments due by | Total | (In millions) | Debt (including capitalized lease obligation)(1) | Operating leases-2 | Data processing, outsourcing agreements and other purchase obligations-3 | Other long-term liabilities-4 (5) | Product liability related to cybersecurity incident-6 | Interest payments-7 | $3,840.0 |


| (dollars in millions) 2012 2011 2010 | Net cash provided by operating activities | Additions to properties | Cash flow | year-over-year change |


The chart shows that for year ended December 31, 2012, the Firm posted market risk related gains on 220 of the 261 days in this period, with gains on eight days exceeding $200 million.
The chart includes year to date losses incurred in the synthetic credit portfolio.
CIB and Credit Portfolio posted market risk-related gains on 254 days in the period.
The inset graph looks at those days on which the Firm experienced losses and depicts the amount by which VaR exceeded the actual loss on each of those days.
Of the losses that were sustained on the 41 days of the 261 days in the trading period, the Firm sustained losses that exceeded the VaR measure on three of those days.
These losses in excess of the VaR all occurred in the second quarter of 2012 and were due to the adverse effect of market movements on risk positions in the synthetic credit portfolio held by CIO.
During the year ended December 31, 2012, CIB and Credit Portfolio experienced seven loss days; none of the losses on those days exceeded their respective VaR measures.


| (in thousands) United  States Equatorial  Guinea North  Sea Other Int’l | December 31, 2004 | Revenues | Production costs -1 | Transportation | E&P corporate | Exploration expenses | DD&A and valuation provision | Impairment of operating assets | Accretion expense | Income | Income tax expense | Result of continuing operations from producing activities (excluding corporate overhead and interest costs) |


| December 31, 2010 December 31, 2009 | Amortized Cost-1 | (in millions) | Less than three months | Three months or greater but less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Greater than twelve months-2 | Total |


(1) Gross unrecognized income tax liabilities, excluding interest and penalties, of $41.9 million are not included in the table due to uncertainty about the date of their settlement.
(2) Contractual obligations means an agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
On January 12, 2017, the Company entered into an indenture, by and between the Company and Wells Fargo Bank, National Association, as trustee, in connection with the issuance of $650 million aggregate principal amount of the Companys 3.650% Senior Notes due 2027.
The Notes will be subject to a special mandatory redemption in the event that the Merger is not consummated on or prior to October 23, 2017 or, if prior to October 23, 2017, the Merger Agreement is terminated other than in connection with the consummation of the Merger and is not otherwise amended or replaced.
In such an event, the Notes will be redeemed at a price equal to 101% of the aggregate principal amount thereof.
If the Merger Agreement is terminated under certain specified circumstances, CBOE Holdings may be required to pay Bats a termination fee of $110 million and/or reimburse Bats expenses up to $10 million under the Merger Agreement.


Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Assets measured at fair value on a non-recurring basis include reporting units measured at fair value in a goodwill impairment test.
Estimates of fair value for reporting units fall under Level 3 of the fair value hierarchy.


| Trading and Clearing Segment Three Months Ended December 31, Data and Listings Segment Three Months Ended December 31, Consolidated Three Months Ended December 31, | 2016 | Total revenues, less transaction-based expenses | Operating expenses | Less: NYSE and Interactive Data transaction and integration costs and acquisition related success fees | Less: Amortization of acquisition-related intangibles | Adjusted operating expenses | Operating income | Adjusted operating income | Operating margin | Adjusted operating margin | Net income attributable to Intercontinental Exchange, Inc. | Add: NYSE and Interactive Data transaction and integration costs and acquisition related success fees | Add: Amortization of acquisition-related intangibles | Add: Pre-acquisition interest expense on debt issued for Interactive Data acquisition | Less: Net gain on the sale of 6% remaining ownership in Euronext | Less: Other income from OCC equity investment | Less: Income tax effect related to the items above | Less: Deferred tax adjustments on acquisition-related intangibles | Add: Other tax adjustments | Adjusted net income attributable to ICE common shareholders from continuing operations | Basic earnings per share attributable to ICE common shareholders from continuing operations | Diluted earnings per share attributable to ICE common shareholders from continuing operations | Adjusted basic earnings per share attributable to ICE common shareholders from continuing operations | Adjusted diluted earnings per share attributable to ICE common shareholders from continuing operations | Basic weighted average common shares outstanding | Diluted weighted average common shares outstanding |


| December 31 | 2016 | (Dollars in millions) | Allowance for loan and lease losses | Residential mortgage | Home equity | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | U.S. commercial-1 | Commercial real estate | Commercial lease financing | Non-U.S. commercial | Total commercial-2 | Allowance for loan and lease losses-3 | Less: Allowance included in assets of business held for sale-4 | Total allowance for loan and lease losses | Reserve for unfunded lending commitments | Allowance for credit losses | 2009-1 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total |


| Amount Percent of TotalOutstandings | Dollars in millions | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate | Non government insured | Government insured | Credit card | Other consumer | Non government insured | Government insured | Total | Amount | Dollars in millions | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate | Non government insured | Government insured | Credit card | Other consumer | Non government insured | Government insured | Total |


| U.S. Canada Total | Proved undeveloped reserves as of December 31, 2012 | Extensions and discoveries | Revisions due to prices | Revisions other than price | Conversion to proved developed reserves | Proved undeveloped reserves as of December 31, 2013 |


| in thousands 2010 2009 | Long-term Debt | 5-yearfloating term loan issued 2010 | 10.125% 2015 notes issued 20091 | 10.375% 2018 notes issued 20092 | 3-yearfloating term loan issued 2008 | 6.30%5-yearnotes issued 20083 | 7.00%10-yearnotes issued 20084 | 3-yearfloating notes issued 2007 | 5.60%5-yearnotes issued 20075 | 6.40%10-yearnotes issued 20076 | 7.15%30-yearnotes issued 20077 | Private placement notes | Medium-term notes | Industrial revenue bonds | Other notes | Total debt excluding short-term borrowings | Less current maturities of long-term debt | Total long-term debt | Estimated fair value of long-term debt |


| 2019 2018 2017 | Balance at beginning of fiscal year | Additions related to purchase accounting-1 | Additions for tax positions taken in current year-2 | Additions for tax positions taken in prior fiscal years | Reductions for tax positions taken in prior fiscal years | Reductions due to settlement-3 | (Reductions) additions for currency translation adjustments | Reductions as a result of a lapse of the applicable statute oflimitations | Balance at end of fiscal year |


| (Dollars in millions) 2008 2009 2010 2011 2012 Thereafter Total | Bank of America Corporation | Bank of America, N.A. and other subsidiaries | NB Holdings Corporation | BAC North America Holding Company and subsidiaries | Other | Total |


(3) Among our wholly-owned regional subsidiaries, the PSA mechanics and flight attendants have agreements that are now amendable and are engaged in traditional RLA negotiations.
The Envoy passenger service employees are engaged in traditional RLA negotiations for an initial CBA.
The Piedmont fleet and passenger service employees have reached a tentative five-year agreement which is subject to membership ratification.
For more discussion, see Part I, Item 1A.


| Year Ended December 31, | 2012 | (In thousands, except per share data) | Statements of Operations Data: | Revenues: | Rental and management | Network development services | Total operating revenues | Operating expenses: | Cost of operations (exclusive of items shown separately below) | Rental and management-1 | Network development services-2 | Depreciation, amortization and accretion-3 | Selling, general, administrative and development expense-4 | Other operating expenses | Total operating expenses | Operating income | Interest income, TV Azteca, net | Interest income | Interest expense | Loss on retirement of long-term obligations | Other (expense) income | Income from continuing operations before income taxes and income on equity method investments | Income tax provision | Income on equity method investments | Income from continuing operations | Income from discontinued operations, net-5 | Net income | Net loss (income) attributable to noncontrolling interest | Net income attributable to American Tower Corporation | Basic income per common share from continuing operations attributable to American Tower Corporation-6 | Diluted income per common share from continuing operations attributable to American Tower Corporation-6 | Weight average common shares outstanding-6 | Basic | Diluted | Distribution declared per share | Other Operating Data: | Ratio of earnings to fixed charges-7 |


| Years Ended December 31, | 2009 | (in millions, except per share data) | Income Statement Data: | Net revenues | Expenses | Income (loss) from continuing operations attributable to Ameriprise Financial | Income from discontinued operations, net of tax | Net income (loss) attributable to Ameriprise Financial | Net income (loss) attributable to noncontrolling interests | Net income (loss) | Earnings (Loss) Per Share Attributable to Ameriprise Financial common shareholders: | Income (loss) from continuing operations attributable to Ameriprise Financial: | Basic | Diluted | Income from discontinued operations, net of tax: | Basic | Diluted | Net income (loss) attributable to Ameriprise Financial: | Basic | Diluted | Cash Dividends Paid Per Common Share | Shareholders | Cash Dividends Paid: | Shareholders | American Express Company |


| Years Ended December 31, | (In millions) | Average U.S. short-duration advances | Average non-U.S. short-duration advances | Total average short-duration advances |


(1) In the second quarter of 2010, Regions recorded a $200 million charge to account for a probable, reasonably estimable loss related to a pending settlement of regulatory matters.
At that time, Regions assumed that the entire charge would be non-deductible for income tax purposes.
$75 million of the regulatory charge relates to continuing operations.
The regulatory settlement was finalized in the second quarter of 2011.
At the time of the settlement, Regions had better information related to the income tax implications.
$125 million of the approximately $200 million settlement charge was deductible for federal income tax purposes.
Accordingly, during the second quarter of 2011, Regions adjusted income tax expense to account for the impact of the deduction.
The adjustment reduced total income tax expense by approximately $44 million for the second quarter of 2011, of which approximately $17 million relates to continuing operations.
(2) Return on assets from continuing operations does not include average assets related to discontinued operations of $713 million, $3,254 million, $3,235 million, $3,291 million and $3,492 million for December 31, 2012, 2011, 2010, 2009 and 2008, respectively.
(3) In the fourth quarter of 2012, Regions entered into an agreement with a third party investor in Regions Asset Management Company, Inc. , pursuant to which the investment was fully redeemed.
This resulted in extinguishing a $203 million liability, including accrued, unpaid interest, as well as incurring early termination costs of approximately $42 million on a pre-tax basis ($38 million after tax).
(4) Taxable income from the two previous tax years and one year of projected future taxable income may be applied in calculating deferred tax assets for regulatory capital purposes.
(5) Under Basel III, regulatory capital must be reduced by purchased credit card relationship intangible assets.
These assets are partially allowed in Basel I capital.
(6) Estimate based on June 2012 U. S.  Notices of Proposed Rulemaking.
(7) Regions continues to develop systems and internal controls to precisely calculate risk-weighted assets as required by Basel III.
The amount included above is a reasonable approximation, based on our understanding of the requirements.


| Available for Sale | In Millions | Under 1 year (current) | Equity securities | Total |


| Fiscal2014 Fiscal2013 Fiscal2012 % Change2014-2013 % Change2013-2012 | Americas | Percentage of total revenue | EMEA | Percentage of total revenue | APAC | Percentage of total revenue | Total revenue |


| 2010 2008 | Conversions | 1.5% Series A debentures | 2.125% Series B debentures | $321 |


As permitted by the new hedge accounting guidance, the Firm elected to transfer certain investment securities from HTM to AFS in the first quarter of 2018.
For additional information, refer to Notes 1 and 10.
ENTERPRISE-WIDE RISK MANAGEMENT Risk is an inherent part of JPMorgan Chases business activities.
When the Firm extends a consumer or wholesale loan, advises customers on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk.
The Firms overall objective is to manage its businesses, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors and protects the safety and soundness of the Firm.
The Firm believes that effective risk management requires: Acceptance of responsibility, including identification and escalation of risk issues, by all individuals within the Firm; Ownership of risk identification, assessment, data and management within each of the lines of business and Corporate; and Firmwide structures for risk governance.
The Firm strives for continual improvement through efforts to enhance controls, ongoing employee training and development, talent retention, and other measures.
The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent Board oversight.
The impact of risk and control issues are carefully considered in the Firms performance evaluation and incentive compensation processes.
Firmwide Risk Management is overseen and managed on an enterprise-wide basis.
The Firms risk management governance and oversight framework involves understanding drivers of risks, types of risks, and impacts of risks.


| (in millions) CFG Parent Company Banking Subsidiaries Consolidated | Year | 2017 or on demand | 2018 | 2019 | 2020 | 2021 | 2022 and thereafter | Total |


| Year Ended December 31, Percentage Change in Revenue | 2017 | Parts & services revenue | Other revenue | Total revenue |


17.
SEGMENT REPORTING The U. S.  Reinsurance operation writes property and casualty reinsurance and specialty lines of business, including Marine, Aviation, Surety and Accident and Health (A&H) business, on both a treaty and facultative basis, through reinsurance brokers, as well as directly with ceding companies primarily within the U. S.  The International operation writes non-U.
S.  property and casualty reinsurance through Everest Res branches in Canada and Singapore and through offices in Brazil, Miami and New Jersey.
The Bermuda operation provides reinsurance and insurance to worldwide property and casualty markets through brokers and directly with ceding companies from its Bermuda office and reinsurance to the United Kingdom and European markets through its UK branch and Ireland Re.
The Insurance operation writes property and casualty insurance directly and through brokers, surplus lines brokers and general agents within the U. S.  and Canada.
These segments are managed independently, but conform with corporate guidelines with respect to pricing, risk management, control of aggregate catastrophe exposures, capital, investments and support operations.
Management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results.
Underwriting results include earned premium less losses and loss adjustment expenses (LAE) incurred, commission and brokerage expenses and other underwriting expenses.
We measure our underwriting results using ratios, in particular loss, commission and brokerage and other underwriting expense ratios, which, respectively, divide incurred losses, commissions and brokerage and other underwriting expenses by premiums earned.
For inter-affiliate reinsurance and business written through the Lloyds Syndicate, business is generally reported within the segment in which the business was first produced, consistent with how the business is managed.
The Company does not maintain separate balance sheet data for its operating segments.
Accordingly, the Company does not review and evaluate the financial results of its operating segments based upon balance sheet data.


* Stock-based compensation expense (pretax) is included in G&A expenses.
Item 7.
Managements Discussion and Analysis of Financial Condition and Results of Operations Results of Operations  CNA Financial  (Continued) Standard Lines The following table summarizes the results of operations for Standard Lines:
2008 Compared with 2007 Net written premiums for Standard Lines decreased $213 million in 2008 as compared with 2007.
Premiums written in 2008 were unfavorably impacted by competitive market conditions resulting in decreased production, as compared with 2007, across both of CNAs Business and Commercial Insurance groups.
The competitive market conditions may put ongoing pressure on premium and income levels, and the expense ratio.
This unfavorable impact was partially offset by decreased ceded premiums.
Net earned premiums decreased $314 million in 2008 as compared with 2007, consistent with the decreased net written premiums.
Standard Lines averaged rate decreases of 5.0% for 2008, as compared to decreases of 4.0% for 2007 for the contracts that renewed during those periods.
Retention rates of 82.0% and 78.0% were achieved for those contracts that were available for renewal in each period.
Net results decreased $534 million in 2008 as compared with 2007.
This decrease was attributable to decreased net operating income and higher net realized investment losses.
See the Investments section of this MD&A for further discussion of the net realized investment results and net investment income.
Net operating income decreased $336 million in 2008 as compared with 2007.
This decrease was primarily driven by significantly lower net investment income and higher catastrophe impacts.
The catastrophe impacts were $204 million after tax and minority interest in 2008, which included a $6 million after tax and minority interest catastrophe-related insurance assessment, as compared to catastrophe losses of $43 million after tax and minority interest in 2007.
In 2008, the amount due from policyholders related to losses under deductible policies within Standard Lines was reduced by $90 million for insolvent insureds.
The reduction of this amount, which is reflected as unfavorable net prior year reserve development, had no effect on 2008 results of operations as CNA had previously recognized provisions in prior years.
These impacts were reported in Insurance claims and policyholders benefits in the 2008 Consolidated Statement of Income.
The combined ratio increased 6.9 points in 2008 as compared with 2007.
The loss ratio increased 8.0 points primarily due to increased catastrophe losses.
Catastrophes losses related to 2008 events had an adverse impact of 11.1 points on the loss ratio in 2008 compared with an adverse impact of 2.2 points in 2007.
The expense ratio decreased 0.9 points in 2008 as compared with 2007 primarily related to changes in the assessment rates imposed by certain states for insurance-related assessments.
The dividend ratio decreased 0.2 points in 2008 as compared with 2007 due to increased favorable dividend development in the workers compensation line of business.


| % Change | Dollar in Millions | Cost of products sold | Marketing, selling and administrative | Research and development | Other (income)/expense | Total Expenses |


Backlog Backlog decreased in 2015 compared to 2014 primarily due to sales being recognized on several multi-year programs (such as HMSC, NISC III, CIOG and NSF ASC) related to prior year awards and a limited number of large new business awards.
Backlog decreased in 2014 compared to 2013 primarily due to lower customer funding levels and declining activities on direct warfighter support programs impacted by defense budget reductions.
Trends We expect IS&GS’ 2016 net sales to decline in the high-single digit percentage range as compared to 2015, primarily driven by key loss contracts in an increasingly competitive environment, along with volume contraction on the segment’s major contracts.
Operating profit is expected to decline at a higher percentage range in 2016, as compared to net sales percentage declines, driven by higher margin program losses and re-compete programs awarded at lower margins.
Accordingly, 2016 margins are expected to be lower than 2015 results.
Missiles and Fire Control Our MFC business segment provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; logistics; fire control systems; mission operations support, readiness, engineering support and integration services; manned and unmanned ground vehicles; and energy management solutions.
MFC’s major programs include PAC-3, THAAD, Multiple Launch Rocket System, Hellfire, JASSM, Javelin, Apache, Sniper?, Low Altitude Navigation and Targeting Infrared for Night (LANTIRN?)
and SOF CLSS.
MFC’s operating results included the following (in millions):


Investing Activities The decrease of $25.1 million in net cash used by investing activities in 2004 was primarily due to decreased spending on customer service projects, partially offset by increases in spending on transmission projects and fossil plant projects.
The increase of $56.0 million in net cash used by investing activities in 2003 was primarily due to increased spending on customer service, transmission, and nuclear projects.
Financing Activities The decrease of $404.4 million in net cash used by financing activities in 2004 was primarily due to: ?
the net issuance of $98.0 million of long-term debt in 2004 compared to the retirement of $261.0 million in 2003; ?
a principal payment of $14.8 million in 2004 for the Waterford Lease Obligation compared to a principal payment of $35.4 million in 2003; and ?
a decrease of $29.0 million in common stock dividends paid.
The decrease of $105.5 million in net cash used by financing activities in 2003 was primarily due to: ?
a decrease of $125.9 million in common stock dividends paid; and ?
the repurchase of $120 million of common stock from Entergy Corporation in 2002.
The decrease in net cash used in 2003 was partially offset by the following: ?
the retirement in 2003 of $150 million of 8.5% Series First Mortgage Bonds compared to the net retirement of $134.6 million of First Mortgage Bonds in 2002; and ?
principal payments of $35.4 million in 2003 for the Waterford 3 Lease Obligation compared to principal payments of $15.9 million in 2002.
See Note 5 to the domestic utility companies and System Energy financial statements for details of long-term debt.
Uses of Capital Entergy Louisiana requires capital resources for: ?
construction and other capital investments; ?
debt and preferred stock maturities; ?
working capital purposes, including the financing of fuel and purchased power costs; and ?
dividend and interest payments.


For the years ended December?31, 2018, 2017 and 2016, the amounts recognized in Principal transactions in the Consolidated Statement of Income related to derivatives not designated in a qualifying hedging relationship, as well as the underlying non-derivative instruments, are presented in Note?6 to the Consolidated Financial Statements.
Citigroup presents this disclosure by showing derivative gains and losses related to its trading activities together with gains and losses related to non-derivative instruments within the same trading portfolios, as this represents how these portfolios are risk managed.
The amounts recognized in Other revenue in the Consolidated Statement of Income related to derivatives not designated in a qualifying hedging relationship are shown below.
The table below does not include any offsetting gains (losses) on the economically hedged items to the extent that such amounts are also recorded in Other revenue.


| 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 | United Parcel Service, Inc. | Standard & Poor’s 500 Index | Dow Jones Transportation Average | Commitment Type | Capital Leases | Operating Leases | Debt Principal | Debt Interest | Purchase Commitments | Pension Fundings | Other Liabilities | Total |


In the three defense groups, revenue on long-term government contracts is recognized generally over time as the work progresses, either as the products are produced or as services are rendered.
Typically, revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying our performance obligations.
Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer.
Contract costs include labor, material, overhead and, when appropriate, G&A expenses.
Variances in costs recognized from period to period reflect primarily increases and decreases in production or activity levels on individual contracts.
Because costs are used as a measure of progress, year-over-year variances in cost result in corresponding variances in revenue, which we generally refer to as volume.
Operating earnings and margin in the defense groups are driven by changes in volume, performance or contract mix.
Performance refers to changes in profitability based on adjustments to estimates at completion on individual contracts.
These adjustments result from increases or decreases to the estimated value of the contract, the estimated costs to complete the contract or both.
Therefore, changes in costs incurred in the period compared with prior periods do not necessarily impact profitability.
It is only when total estimated costs at completion on a given contract change without a corresponding change in the contract value that the profitability of that contract may be impacted.
Contract mix refers to changes in the volume of higherversus lower-margin work.
Additionally, higher or lower margins can be inherent in the contract type (e. g. , fixed-price/cost-reimbursable) or type of work (e. g. , development/production).


| For the Years Ended December 31, | 2015 | (In millions) | Infrastructure charges by state | Pennsylvania(a) | New Jersey(b) | Missouri(c) | Indiana(d) | Illinois(e) | New York(f) | Tennessee(g) | Total Infrastructure charges |


| A.M. Best Fitch Standard & Poor's Moody's | Principal Financial Group | Senior Unsecured Debt | Preferred Stock | Principal Financial Services | Senior Unsecured Debt | Commercial Paper | Principal Life Insurance Company | Insurer Financial Strength | Enterprise Risk Management Rating |


| Derivatives Not Designated as Hedging Instruments 2010 2009 | (In millions) | Brokerage income | Interest rate swaps | Interest rate options | Interest rate futures and forward commitments | Other contracts | Total brokerage income | Mortgage income | Interest rate swaps | Interest rate options | Interest rate futures and forward commitments | Total mortgage income | $89 |


| (millions) Total carrying amount | 2006 | Trademarks | Pension (a) | Total | Asia | United  States | (millions) | January 1, 2005 | Acquisitions | Other | December 31, 2005 | Purchase accounting adjustments (b) | Other | December 30, 2006 |