| (Dollars in billions) 2012 2011 2010 | Distribution Solutions | Technology Solutions | Total |


Comparison 2008 to 2007


| Total-1 | Balance, December 31, 2017 | Other comprehensive loss before reclassifications | Amounts reclassified from accumulated other comprehensive loss | Transfer of held-to-maturity securities to available-for-sale securities-2 | Net change | Cumulative effect of hedge accounting adoption | Reclassification of tax effects due to federal tax reform | Balance, December 31, 2018-3 |


| Year Ended December 31, 2008 | Fixed Maturities Available For Sale | (in millions) | Fair Value, beginning of period | Total gains or (losses) (realized/unrealized): | Included in earnings: | Realized investment gains (losses), net | Asset management fees and other income | Included in other comprehensive income (loss) | Net investment income | Purchases, sales, issuances and settlements | Foreign currency translation | Other-1 | Transfers into (out of) Level 3(2) | Fair Value, end of period | Unrealized gains (losses) for the period relating to those Level 3 assets that were still held at the end of theperiod(3) | Included in earnings: | Realized investment gains (losses), net | Asset management fees and other income | Included in other comprehensive income (loss) |


Investment Banking Client teams and product specialists underwrite and distribute debt, equity and loan products, and provide advisory services and tailored risk management solutions.
The economics of most investment banking and underwriting activities are shared primarily between Global Banking and Global Markets based on the activities performed by each segment.
To provide a complete discussion of our consolidated investment banking fees, the table below presents total Corporation investment banking fees including the portion attributable to Global Banking.


| RevPAR Occupancy Average Daily Rate | 2016 | JW Marriott | The Ritz-Carlton | W Hotels | Composite North American Luxury-1 | Marriott Hotels | Sheraton | Westin | Composite North American Upper Upscale-2 | Composite North American Full-Service-3 | Courtyard | Residence Inn | Composite North American Limited-Service-4 | Composite North American - All | RevPAR | 2016 | JW Marriott | The Ritz-Carlton | W Hotels | Composite North American Luxury-1 | Marriott Hotels | Sheraton | Westin | Composite North American Upper Upscale-2 | Composite North American Full-Service-3 | Courtyard | Residence Inn | Fairfield Inn & Suites | Composite North American Limited-Service-4 | Composite North American - All |


Liquidity Risk and Capital Management Liquidity Risk Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates.
Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in our business operations or unanticipated events.
Sources of liquidity include deposits and other customer-based funding, and wholesale market-based funding.
We manage liquidity at two levels.
The first is the liquidity of the parent company, which is the holding company that owns the banking and nonbanking subsidiaries.
The second is the liquidity of the banking subsidiaries.
The management of liquidity at both levels is essential because the parent company and banking subsidiaries each have different funding needs and sources, and each are subject to certain regulatory guidelines and requirements.
Through ALCO, the Finance Committee is responsible for establishing our liquidity policy as well as approving operating and contingency procedures, and monitoring liquidity on an ongoing basis.
Corporate Treasury is responsible for planning and executing our funding activities and strategy.
In order to ensure adequate liquidity through the full range of potential operating environments and market conditions, we conduct our liquidity management and business activities in a manner that will preserve and enhance funding stability, flexibility, and diversity.
Key components of this operating strategy include a strong focus on customer-based funding, maintaining direct relationships with wholesale market funding providers, and maintaining the ability to liquefy certain assets when, and if, requirements warrant.
We develop and maintain contingency funding plans for both the parent company and bank liquidity positions.
These plans evaluate our liquidity position under various operating circumstances and allow us to ensure that we would be able to operate through a period of stress when access to normal sources of funding is constrained.
The plans project funding requirements during a potential period of stress, specify and quan tify sources of liquidity, outline actions and procedures for effectively managing through the problem period, and define roles and responsibilities.
They are reviewed and approved annually by ALCO.
Our borrowing costs and ability to raise funds are directly impacted by our credit ratings.
The credit ratings of Bank of America Corporation and Bank of America, N. A.  are reflected in the table below.
Under normal business conditions, primary sources of funding for the parent company include dividends received from its banking and nonbanking subsidiaries, and proceeds from the issuance of senior and subordinated debt, as well as commercial paper and equity.
Primary uses of funds for the parent company include repayment of maturing debt and commercial paper, share repurchases, dividends paid to shareholders, and subsidiary funding through capital or debt.
The parent company maintains a cushion of excess liquidity that would be sufficient to fully fund holding company and nonbank affiliate operations for an extended period during which funding from normal sources is disrupted.
The primary measure used to assess the parent companys liquidity is the Time to Required Funding during such a period of liquidity disruption.
This measure assumes that the parent company is unable to generate funds from debt or equity issuance, receives no dividend income from subsidiaries, and no longer pays dividends to shareholders while continuing to meet nondiscretionary uses needed to maintain bank operations and repayment of contractual principal and interest payments owed by the parent company and affiliated companies.
Under this scenario, the amount of time the parent company and its nonbank subsidiaries can operate and meet all obligations before the current liquid assets are exhausted is considered the Time to Required Funding.
 ALCO approves the target range set for this metric, in months, and monitors adherence to the target.
Maintaining excess parent company cash ensures that Time to Required Funding remains in the target range of 21 to 27 months and is the primary driver of the timing and amount of the Corporations debt issuances.
As of December 31, 2006 Time to Required Funding was 24 months compared to 29 months at December 31, 2005.
The reduction reflects the funding in 2005 in anticipation of the $5.2 billion cash payment related to the MBNA merger that was paid on January 1, 2006 combined with an increase in share repurchases.


| For the Years Ended December 31, | 2012 | (in thousands) | Contracted services | Office supplies and services | Transportation | Rents | Other | Total |


Note 14 Regulatory Requirements and Restrictions The Board of Governors of the Federal Reserve System (FRB) requires the Corporations banking subsidiaries to maintain reserve balances based on a percentage of certain deposits.
Average daily reserve balances required by the FRB were $6.9 billion and $4.1 billion for 2004 and 2003, respectively.
Currency and coin residing in branches and cash vaults (vault cash) are used to partially satisfy the reserve requirement.
The average daily reserve balances, in excess of vault cash, held with the Federal Reserve Bank amounted to $70 million and $317 million for 2004 and 2003, respectively.
The primary source of funds for cash distributions by the Corporation to its shareholders is dividends received from its banking subsidiaries.
Bank of America, N. A.  and Fleet National Bank declared and paid dividends of $5.9 billion and $1.3 billion, respectively, for 2004 to the parent.
In 2005, Bank of America, N. A.  and Fleet National Bank can declare and pay dividends to the parent of $4.7 billion and $790 million plus an additional amount equal to their net profits for 2005, as defined by statute, up to the date of any such dividend declaration.
The other subsidiary national banks can initiate aggregate dividend payments in 2005 of $2.6 billion plus an additional amount equal to their net profits for 2005, as defined by statute, up to the date of any such dividend declaration.
The amount of dividends that each subsidiary bank may declare in a calendar year without approval by the OCC is the subsidiary banks net profits for that year combined with its net retained profits, as defined, for the preceding two years.
The FRB, the OCC and the Federal Deposit Insurance Corporation (collectively, the Agencies) have issued regulatory capital guidelines for U. S.  banking organizations.
Failure to meet the capital requirements can initiate certain mandatory and discretionary actions by regulators that could have a material effect on the Corporations financial statements.
At December 31, 2004 and 2003, the Corporation and Bank of America, N. A.  were classified as well-capitalized under this regulatory framework.
At December 31, 2004, Fleet National Bank was classified as well-capitalized under this regulatory framework.
There have been no conditions or events since December 31, 2004 that management believes have changed the Corporations, Bank of America, N. A.
s or Fleet National Banks capital classifications.


CBOE HOLDINGS, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the years ended December 31, 2016, 2015 and 2014 15.
COMMITMENTS AND CONTINGENCIES (Continued) The Company reviews its legal proceedings and claims, regulatory reviews and inspections and other legal proceedings on an ongoing basis and follows appropriate accounting guidance when making accrual and disclosure decisions.
The Company establishes accruals for those contingencies where the incurrence of a loss is probable and can be reasonably estimated, and we disclose the amount accrued and the amount of a reasonably possible loss in excess of the amount accrued, if such disclosure is necessary for our financial statements to not be misleading.
The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated, or when the liability is believed to be only reasonably possible or remote.
The Company’s assessment of whether a loss is reasonably possible or probable is based on its assessment of the ultimate outcome of the matter following all appeals.
As of December 31, 2016, the Company does not believe that there is a reasonable possibility that any material loss exceeding the amounts already recognized for these reviews, inspections or other legal proceedings, if any, has been incurred.
While the consequences of certain unresolved proceedings are not presently determinable, the outcome of any litigation is inherently uncertain and an adverse outcome from certain matters could have a material effect on our earnings in any given reporting period.
However, in the opinion of management, the ultimate liability is not expected to have a material effect on our financial position, liquidity or capital resources.
Lanier Litigation On May 23, 2014, Harold R.  Lanier sued 14 securities exchanges, including CBOE, in the United States District Court for the Southern District of New York (the ‘‘Court’’) on behalf of himself and a putative class consisting of all persons in the United States who entered into contracts to receive market data through certain data plans at any time since May 19, 2008 to the present.
The complaint alleged that the market data provided under the CQ Plan and CTA Plans was inferior to the data that the exchanges provided to those that directly receive other data from the exchanges, which the plaintiffs alleged is a breach of their ‘‘subscriber contracts’’ and a violation of the exchanges’ obligations under the CQ and CTA Plans.
The plaintiffs sought monetary and injunctive relief.
On May 30, 2014, Mr.  Lanier filed two additional suits in the same Court, alleging substantially the same claims and requesting the same types of relief against the exchanges who participate in the UTP and the OPRA data plans.
CBOE was a defendant in each of these suits, while C2 was only a defendant in the suit regarding the OPRA Plan.
On April 28, 2015, the Court dismissed Lanier’s complaint with prejudice because it was preempted by the federal regulatory scheme and because the claims were precluded by the terms of the applicable subscriber agreements.
Mr.  Lanier appealed the orders dismissing each of his three cases and, on September 2, 2015, he filed his opening appellate briefs in those cases.
The defendants’ response briefs were filed November 24, 2015 and briefing on the appeals has concluded.
The oral arguments on the appeals were heard on March 3, 2016.
On September 23, 2016, the Court of Appeals ruled in favor of the defendants and affirmed the Court’s dismissal of Lanier’s complaints with prejudice.
On October 7, 2016, Lanier filed a petition for rehearing only in the action related to the OPRA Plan and the Court of Appeals ruling with respect to the other two complaints is now final.
On November 4, 2016, the Court of Appeals denied the petition for rehearing in the case related to the OPRA Plan.


Restricted Stock Award Plans Under The Coca-Cola Company 1989 Restricted Stock Award Plan and The Coca-Cola Company 1983 Restricted Stock Award Plan (the ‘‘Restricted Stock Award Plans’’), 80 million and 48 million shares of restricted common stock, respectively, were originally available to be granted to certain officers and key employees of our Company.
As of December 31, 2013, 25 million shares remain available for grant under the Restricted Stock Award Plans.
The Company issues restricted stock to employees as a result of performance share unit awards, time-based awards and performance-based awards.
For awards prior to January 1, 2008, under the 1983 Restricted Stock Award Plan, participants are reimbursed by our Company for income taxes imposed on the award, but not for taxes generated by the reimbursement payment.
The 1983 Restricted Stock Award Plan has been amended to eliminate this tax reimbursement for awards after January 1, 2008.
The shares are subject to certain transfer restrictions and may be forfeited if a participant leaves our Company for reasons other than retirement, disability or death, absent a change in control of our Company.


subject to fluctuation and, consequently, the amount realized in the subsequent sale of an investment may differ significantly from its current reported value.
Fluctuations in the market price of a security may result from perceived changes in the underlying economic characteristics of the issuer, the relative price of alternative investments and general market conditions.
The table below summarizes equity investments that are subject to equity price fluctuations at December 31, 2012.
Equity investments are included in other assets in our consolidated balance sheets.
We do not currently hedge against equity price risk.
Equity investments are assessed for other-than-temporary impairment on a quarterly basis.


| Benchmark 2012 2011 2010 | WTI crude oil(Dollars per bbl) | Brent (Europe) crude oil(Dollars per bbl) | Henry Hub natural gas(Dollars per mmbtu)(a) |


| Fourth Quarter | (Amounts in millions) | External net sales | Intersegment net sales | Segment net sales | Cost of goods sold | Gross profit | Operating expenses | Segment operating earnings |


| December 31, 2014 December 31, 2013 | In millions | Derivatives designated as hedging instruments under GAAP | Total derivatives designated as hedging instruments | Derivatives not designated as hedging instruments under GAAP | Total derivatives used for residential mortgage banking activities | Total derivatives used for commercial mortgage banking activities | Total derivatives used for customer-related activities | Total derivatives used for other risk management activities | Total derivatives not designated as hedging instruments | Total Derivatives | December 31, 2014 | Long-term prepayment rate (annual CPR) | Prime | Alt-A | Option ARM | Remaining collateral expected to default | Prime | Alt-A | Option ARM | Loss severity | Prime | Alt-A | Option ARM | Year ended December 31In millions | Balance at beginning of period | Loss where impairment was not previously recognized | Additional loss where credit impairment was previously recognized | Reduction due to credit impaired securities sold or matured | Balance at end of period | Fair Value Measurements Using: | In millions | Money market funds | U.S. government and agency securities | Corporate debt (a) | Common stock | Preferred stock | Mutual funds | Interest in Collective Funds (b) | Limited partnerships | Other | Total | Fair Value Measurements Using: | In millions | Money market funds | U.S. government and agency securities | Corporate debt (a) | Common stock | Preferred Stock | Mutual funds | Interest in Collective Funds (c) | Limited partnerships | Other | Total | In millions | Resale Agreements | December 31, 2014 | December 31, 2013 |


| Year Ended December 31, | 2007 | (in millions, except per share and ratio information) | Income Statement Data: | Revenues: | Premiums | Policy charges and fee income | Net investment income | Realized investment gains (losses), net | Asset management fees and other income | Total revenues | Benefits and expenses: | Policyholders’ benefits | Interest credited to policyholders’ account balances | Dividends to policyholders | General and administrative expenses | Loss on disposition of property and casualty insurance operations | Total benefits and expenses | Income from continuing operations before income taxes, equity in earnings of operating joint ventures, extraordinary gain on acquisition andcumulative effect of accounting change | Income tax expense | Income from continuing operations before equity in earnings of operating joint ventures, extraordinary gain on acquisition and cumulativeeffect of accounting change | Equity in earnings of operating joint ventures, net of taxes | Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change | Income (loss) from discontinued operations, net of taxes | Extraordinary gain on acquisition, net of taxes | Cumulative effect of accounting change, net of taxes | Net income | Basic income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change pershare—Common Stock | Diluted income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change pershare—Common Stock | Basic net income per share—Common Stock | Diluted net income per share—Common Stock | Basic and diluted income from continuing operations per share—Class B Stock | Basic and diluted net income per share—Class B Stock | Dividends declared per share—Common Stock | Dividends declared per share—Class B Stock | Ratio of earnings to fixed charges-1 |


| (Dollar amounts in millions) 2017 Percent change 2016 Percent change 2015 | Salaries and bonuses | Employee benefits: | Employee health and insurance | Retirement | Payroll taxes and other | Total benefits | Total salaries and employee benefits | Full-time equivalent employees at December 31 |


| December 31, (in millions) 2015 2014 2013 | Consumer & Community Banking | Corporate & Investment Bank | Commercial Banking | Asset Management | Corporate | Total goodwill |


Hilliard Lyons sponsors a contributory, qualified defined contribution plan that covers substantially all of its employees who are not covered by the plan described above.
Contributions to this plan are made in cash and include a base contribution for those participants employed at December 31, a matching of employee contributions, and a discretionary profit sharing contribution as determined by Hilliard Lyons Executive Compensation Committee.
Employee benefits expense for this plan was $6 million in 2007, $5 million in 2006 and $6 million in 2005.
See Note 2 Acquisitions and Divestitures regarding our pending sale of Hilliard Lyons.
We have a separate qualified defined contribution plan that covers substantially all US-based PFPC employees not covered by our plan.
The plan is a 401(k) plan and includes an ESOP feature.
Under this plan, employee contributions of up to 6% of eligible compensation as defined by the plan may be matched annually based on PFPC performance levels.
Participants must be employed as of December 31 of each year to receive this annual contribution.
The performancebased employer matching contribution will be made primarily in shares of PNC common stock held in treasury, except in the case of those participants who have exercised their diversification election rights to have their matching portion in other investments available within the plan.
Mandatory employer contributions to this plan are made in cash and include employer basic and transitional contributions.
Employee-directed contributions are invested in a number of investment options available under the plan, including a PNC common stock fund and several BlackRock mutual funds, at the direction of the employee.
Effective November 22, 2005, we amended the plan to provide all participants the ability to diversify the matching portion of their plan account invested in shares of PNC common stock into other investments available within the plan.
Prior to this amendment, only participants age 50 or older were permitted to exercise this diversification option.
Employee benefits expense for this plan was $10 million in 2007, $9 million in 2006 and $12 million in 2005.
We measured employee benefits expense as the fair value of the shares and cash contributed to the plan.
We also maintain a nonqualified supplemental savings plan for certain employees.


| Remaining Life | One Year or   Less | (In millions) | Interest rate swaps | Interest rate floors | Interest rate caps | Financial futures | Foreign currency swaps | Foreign currency forwards | Options | Financial forwards | Credit default swaps | Synthetic GICs | Other | Total |


| Years Ended December 31, | 2015 | (in millions) | Direct premiums | Reinsurance ceded | Net premiums |


| Years Ended December 31, | 2006 | (In millions) | Revenues | Premiums | Net investment income and other revenues | Net investment gains (losses) | Total revenues | Expenses | Policyholder benefits and claims | Policyholder dividends | Change in policyholder dividend obligation | Other expenses | Total expenses | Revenues, net of expenses before income tax | Income tax | Revenues, net of expenses and income tax from continuing operations | Revenues, net of expenses and income tax from discontinued operations | Revenues, net of expenses, income taxes and discontinued operations |


| As of April 30, 2017 April 30, 2016 | Short-term | Moody's | S&P-1 |


| Per Option | Options outstanding atDecember 31Shares in thousands | December 31, 2006 | Granted | Exercised | Cancelled | December 31, 2007 |


Shareholders’ Equity The Company has a share repurchase program in place to return excess capital to shareholders.
Since September 2008 through the date of this report, the Company has suspended its stock repurchase program; as a result there were no share repurchases during the year ended December 31, 2009.
During the years ended December 31, 2008 and 2007, the Company repurchased a total of 12.7 million and 15.9 million shares, respectively, of its common stock at an average price of $48.26 and $59.59, respectively.
As of December 31, 2009, the Company had approximately $1.3 billion remaining under a share repurchase authorization.
The Company may also reacquire shares of its common stock under its 2005 ICP and 2008 Plan related to restricted stock awards.
Restricted shares that are forfeited before the vesting period has lapsed are recorded as treasury shares.
In addition, the holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligations.
These vested restricted shares reacquired by the Company and the Company’s payment of the holders’ income tax obligations are recorded as a treasury share purchase.
The restricted shares forfeited and recorded as treasury shares under the 2005 ICP and 2008 Plan were 0.3 million shares in each of the years ended December 31, 2009, 2008 and 2007.
For each of the years ended December 31, 2009, 2008 and 2007, the Company reacquired 0.5 million of its common stock through the surrender of restricted shares upon vesting and paid in the aggregate $11 million, $24 million and $29 million, respectively, related to the holders’ income tax obligations on the vesting date.
In 2009, the Company issued and sold 36 million shares of its common stock.
The proceeds of $869 million will be used for general corporate purposes, including the Company’s pending acquisition of the long-term asset management business of Columbia, which is expected to close in the spring of 2010.
See Note 5 for additional information on the Company’s pending acquisition of Columbia.
In 2008, the Company reissued 1.8 million treasury shares for restricted stock award grants and the issuance of shares vested under the P2 Deferral Plan and the Transition and Opportunity Bonus (‘‘T&O Bonus’’) program.
In 2005, the Company awarded bonuses to advisors


| Year Gallons Consumed-2(Millions) Cost-2 (3)(Millions) Average Price Per Gallon-2 (3) Percentage of Total Operating Expense-2 | 2008-1 | 2007 | 2006 |


Inventories We state inventories at the lower of first-in, first-out cost or market.
We base our provisions for excess, expired and obsolete inventory primarily on our estimates of forecasted net sales.
A significant change in the timing or level of demand for our products as compared to forecasted amounts may result in recording additional provisions for excess, expired and obsolete inventory in the future.
Further, the industry in which we participate is characterized by rapid product development and frequent new product introductions.
Uncertain timing of next-generation product approvals, variability in product launch strategies, product recalls and variation in product utilization all affect our estimates related to excess, expired and obsolete inventory.
Approximately 40 percent of our finished goods inventory as of December 31, 2016 and December 31, 2015 was at customer locations pursuant to consignment arrangements or held by sales representatives.


substances, including asbestos (i. e.  A&E).
The Companys asbestos claims typically involve potential liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos.
The Companys environmental claims typically involve potential liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damages caused by the release of hazardous substances into the land, air or water.
As of December 31, 2006, roughly 7% of the Companys gross reserves are an estimate of the Companys ultimate liability for A&E claims.
The Companys A&E liabilities stem from Mt.
McKinleys direct insurance business and Everest Res assumed reinsurance business.
This estimate is made based on assessments of the underlying exposures as the result of (1) long and variable reporting delays, both from insureds to insurance companies and from ceding companies to reinsurers; (2) historical data, which is more limited and variable on A&E losses than historical information on other types of casualty claims; and (3) unique aspects of A&E exposures for which ultimate value cannot be estimated using traditional reserving techniques.
There are significant uncertainties in estimating the amount of the Companys potential losses from A&E claims.
Among the uncertainties are: (a) potential passing of many years between exposure and manifestation of any bodily injury or property damage; (b) difficulty in identifying sources of asbestos or environmental contamination; (c) difficulty in properly allocating responsibility and/or liability for asbestos or environmental damage; (d) changes in underlying laws and judicial interpretation of those laws; (e) the potential for an asbestos or environmental claim to involve many insurance providers over many policy periods; (f) questions concerning interpretation and application of insurance and reinsurance coverage; and (g) uncertainty regarding the number and identity of insureds with potential asbestos or environmental exposure.
With respect to asbestos claims in particular, several additional factors have emerged in recent years that further compound the difficulty in estimating the Companys liability.
These developments include: (a) the significant growth over a short period of time in the number of claims filed, in part reflecting a much more aggressive plaintiff bar and including claims against defendants who may only have a peripheral connection to asbestos; (b) a disproportionate percentage of claims filed by individuals with no physical injury, which should have little to no financial value but which have increasingly been considered in jury verdicts and settlements; (c) the growth in the number and significance of bankruptcy filings by companies as a result of asbestos claims (including, more recently, bankruptcy filings in which companies attempt to resolve their asbestos liabilities in a manner that is prejudicial to insurers and forecloses insurers from participating in the negotiation of asbestos related bankruptcy reorganization plans); (d) the concentration of claims in a small number of states that favor plaintiffs; (e) the growth in the number of claims that might impact the general liability portion of insurance policies rather than the product liability portion; (f) measures adopted by specific courts to ameliorate the worst procedural abuses; (g) an increase in settlement values being paid to asbestos claimants, especially those with cancer or functional impairment; (h) legislation in some states to address asbestos litigation issues; and (i) the potential that other states or the U.  S.  Congress may adopt legislation on asbestos litigation.
Anecdotal evidence suggest that new claims filing rates have decreased, that new filings of asbestosdriven bankruptcies have decreased and legislative reforms are beginning to diminish the potential ultimate liability for asbestos losses.
Management believes that these uncertainties and factors continue to render reserves for A&E and particularly asbestos losses significantly less subject to traditional actuarial analysis than reserves for other types of losses.
Given these uncertainties, management believes that no meaningful range for such ultimate losses can be established, particularly for asbestos.
Further, A&E reserves may be subject to more variability than non-A&E reserves and such variation could have a material adverse effect on the Companys financial condition, results of operation and/or cash flow.
The Company establishes reserves to the extent that, in the judgment of management, the facts and prevailing law reflect an exposure for the Company or its ceding companies.
The following table summarizes incurred losses with respect to A&E on both a gross and net of retrocessional basis for the years indicated:


by the parties.
On September 16, 2013, the Goretzka family filed Limited Objections to the settlement.
Reply comments were filed by WP on September 30, 2013.
The PPUC entered an Opinion and Order on January 9, 2014 approving the Settlement with limited modifications regarding the frequency of refresher training and reporting obligations.
WP filed a letter on January 17, 2014 accepting those modifications and noting its intent to begin implementation of the settlement terms.
There are various lawsuits, claims (including claims for asbestos exposure) and proceedings related to FirstEnergy's normal business operations pending against FirstEnergy and its subsidiaries.
The loss or range of loss in these matters is not expected to be material to FirstEnergy or its subsidiaries.
The other potentially material items not otherwise discussed above are described under Note 15, Regulatory Matters of the Combined Notes to Consolidated Financial Statements.
FirstEnergy accrues legal liabilities only when it concludes that it is probable that it has an obligation for such costs and can reasonably estimate the amount of such costs.
In cases where FirstEnergy determines that it is not probable, but reasonably possible that it has a material obligation, it discloses such obligations and the possible loss or range of loss if such estimate can be made.
If it were ultimately determined that FirstEnergy or its subsidiaries have legal liability or are otherwise made subject to liability based on any of the matters referenced above, it could have a material adverse effect on FirstEnergy's or its subsidiaries' financial condition, results of operations and cash flows.17.
TRANSACTIONS WITH AFFILIATED COMPANIES FES’ operating revenues, operating expenses, investment income and interest expenses include transactions with affiliated companies.
These affiliated company transactions include affiliated company power sales agreements between FirstEnergy's competitive and regulated companies, support service billings, interest on affiliated company notes including the money pools and other transactions.
FirstEnergy's competitive companies at times provide power through affiliated company power sales to meet a portion of the Utilities' POLR and default service requirements.
The primary affiliated company transactions for FES during the three years ended December 31, 2013 are as follows:


Our Wholesale Segment Our Wholesale segment sells our products to leading upscale and certain mid-tier department stores, specialty stores, and golf and pro shops, both domestically and internationally.
We have continued to focus on elevating our brand by improving instore product assortment and presentation, as well as full-price sell-throughs to consumers.
As of the end of Fiscal 2014, our Ralph Lauren-branded products were sold through over 11,000 doors worldwide and we invested $53 million of capital in related shopwithin-shops primarily in domestic and international department and specialty stores.
Our products are also sold through the ecommerce sites of certain of our wholesale customers.
The primary product offerings sold through our wholesale channels of distribution include menswear, womenswear, childrenswear, accessories, and home furnishings.
Our collection brands  Ralph Lauren Women's Collection and Black Label and Men's Purple Label and Black Label  are distributed worldwide through a limited number of premier fashion retailers.
Department stores are our major wholesale customers in North America.
In Latin America, our wholesale products are sold in department stores and specialty stores.
In Europe, our wholesale sales are a varying mix of sales to both department stores and specialty stores, depending on the country.
In Japan, our wholesale products are distributed primarily through shop-within-shops at premier and top-tier department stores, and the mix of business is weighted to Men's and Women's Blue Label.
In the Greater China and Southeast Asia region and Australia, our wholesale products are sold mainly at mid and top-tier department stores, and the mix of business is primarily weighted to Men's and Women's Blue Label.
We also distribute product to certain licensed stores operated by our partners in Latin America, Europe, and Asia.
In addition, our Club Monaco products are distributed through select department stores and specialty stores in Europe.
We sell the majority of our excess and out-of-season products through secondary distribution channels worldwide, including our retail factory stores.
Worldwide Distribution Channels The following table presents the number of doors by geographic location in which Ralph Lauren-branded products distributed by our Wholesale segment were sold to consumers in our primary channels of distribution as of March 29, 2014:


| Defined benefit pension plans | U.S. | December 31, (in millions) | Change in benefit obligation | Benefit obligation at beginning of year | Merger with Bank One | Cazenove business partnership | Benefits earned during the year | Interest cost on benefit obligations | Plan amendments | Employee contributions | Actuarial gain (loss) | Benefits paid | Curtailments | Special termination benefits | Foreign exchange impact and other | Benefit obligation at end of year | Change in plan assets | Fair value of plan assets at beginning of year | Merger with Bank One | Cazenove business partnership | Actual return on plan assets | Firm contributions | Benefits paid | Foreign exchange impact and other | Fair value of plan assets at end of year | Reconciliation of funded status | Funded status | Unrecognized amounts:(a) | Net transition asset | Prior service cost | Net actuarial loss | Prepaid benefit cost reported in Other assets | Accumulated benefit obligation |


| At December 31, 2010 Credit Exposure as a Percentage of Total Equity(a) | Industry Category: | Money center / Global bank groups | European regional financial institutions | Global reinsurance companies | Global life insurance companies | North American based regional financial institutions | Global non-life insurance companies | Global securities companies | Supranational Banks |


| For the Years Ended December 31, | (Millions of Dollars) | Operating revenues | Purchased power | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Electric operating income |


| Facility Drawn(a) Available Original Term Maturity | (Millions of Dollars) | NSP-Minnesota | PSCo | SPS | Xcel Energy — Holding Company | NSP-Wisconsin(b) | Total |


Financial instruments for which fair value does not approximate carrying value Loans The majority of the Firms loans are not carried at fair value on a recurring basis on the Consolidated balance sheets nor are they actively traded.
The following describes the inputs and assumptions that the Firm considers in arriving at an estimate of fair value for the following portfolios of loans.
Wholesale Fair value for the wholesale loan portfolio is estimated, primarily using the cost of credit derivatives, which is adjusted to account for the differences in recovery rates between bonds, upon which the cost of credit derivatives is based, and loans.
Consumer ?
Fair values for consumer installment loans (including automobile financings and consumer real estate), for which market rates for comparable loans are readily available, are based upon discounted cash flows adjusted for prepayments.
The discount rate used for consumer installment loans are based on the current market rates adjusted for credit, liquidity and other risks that are applicable to a particular asset class.  ?
Fair value for credit card receivables is based upon discounted expected cash flows.
The discount rates used for credit card receivables incorporate only the effects of interest rate changes, since the expected cash flows already reflect an adjustment for credit risk.
Interest-bearing deposits Fair values of interest-bearing time deposits are estimated by dis counting cash flows using the appropriate market rates for the applicable maturity.
Long-term debt related instruments Fair value for long-term debt, including the junior subordinated deferrable interest debentures held by trusts that issued guaranteed capital debt securities, is based upon current market rates and is adjusted for JPMorgan Chases credit quality.
Lending-related commitments The majority of the Firms unfunded lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets nor are they actively traded.
Although there is no liquid secondary market for wholesale commitments, the Firm estimates the fair value of its wholesale lending-related commitments primarily using the cost of credit derivatives (which is adjusted to account for the difference in recovery rates between bonds, upon which the cost of credit derivatives is based, and loans) and loan equivalents (which represent the portion of an unused commitment expected, based upon the Firms average portfolio historical experience, to become outstanding in the event an obligor defaults).
The Firm estimates the fair value of its consumer commitments to extend credit based upon the primary market prices to originate new commitments.
It is the change in current primary market prices that provides the estimate of the fair value of these commitments.
On this basis, the estimated fair value of the Firms lending-related commitments at December 31, 2007 and 2006, was a liability of $1.9 billion and $210 million, respectively.


| (Millions) 2011 2010 | Other, weighted average 3.72% as of Dec. 31, 2011 and 3.39% as of December 31, 2010 | Total |


DIAMOND OFFSHORE DRILLING, INC.  Diamond Offshore Drilling, Inc.  (Diamond Offshore), is engaged, through its subsidiaries, in the business of owning and operating drilling rigs that are used in the drilling of offshore oil and gas wells on a contract basis for companies engaged in exploration and production of hydrocarbons.
Diamond Offshore owns 47 offshore rigs.
Diamond Offshore accounted for 25.9%, 26.3% and 18.3% of our consolidated total revenue for the years ended December 31, 2009, 2008 and 2007.
Diamond Offshore owns and operates 32 semisubmersible rigs, consisting of 13 high specification and 19 intermediate rigs.
Semisubmersible rigs consist of an upper working and living deck resting on vertical columns connected to lower hull members.
Such rigs operate in a semi-submerged position, remaining afloat, off bottom, in a position in which the lower hull is approximately 55 feet to 90 feet below the water line and the upper deck protrudes well above the surface.
Semisubmersible rigs are typically anchored in position and remain stable for drilling in the semi-submerged floating position due in part to their wave transparency characteristics at the water line.
Semisubmersible rigs can also be held in position through the use of a computer controlled thruster (dynamic-positioning) system to maintain the rigs position over a drillsite.
Five semisubmersible rigs in Diamond Offshores fleet have this capability.
Diamond Offshores high specification semisubmersible rigs are generally capable of working in water depths of 4,000 feet or greater or in harsh environments and have other advanced features, as compared to intermediate semisubmersible rigs.
As of January 25, 2010, seven of the 13 high specification semisubmersible rigs, including the recently acquired Ocean Courage, were located in the U. S.  Gulf of Mexico (GOM).
At that date Diamond Offshore had two high specification semisubmersible rigs operating offshore Brazil, while a third was en route to Brazil from the GOM.


| (Millions of Dollars) 2006 2005 Increase/ (Decrease) | Property taxes | State and local taxes related to revenue receipts | Payroll taxes | Total |


| As of or for the Years Ended December 31, | 2008 | Gross | (In millions) | Asbestos: | Liability for unpaid claims and claims adjustment expense at beginning of year | Losses and loss expenses incurred* | Losses and loss expenses paid* | Liability for unpaid claims and claims adjustment expense at end of year | Environmental: | Liability for unpaid claims and claims adjustment expense at beginning of year | Losses and loss expenses incurred* | Losses and loss expenses paid* | Liability for unpaid claims and claims adjustment expense at end of year | Combined: | Liability for unpaid claims and claims adjustment expense at beginning of year | Losses and loss expenses incurred* | Losses and loss expenses paid* | Liability for unpaid claims and claims adjustment expense at end of year |


| Years Ended December 31, | 2008 | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Pretax income |


| Years Ended December 31, | 2012 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Operating earnings | Premiums Payable | (in millions) | 2017 | 2018 | 2019 | 2020 | 2021 | 2022-2027 | Total | Pretax Increase (Decrease) | (in millions) | Premiums | Other revenues | Total revenues | Distribution expenses | Benefits, claims, losses and settlement expenses | Amortization of DAC | Total expenses | Total-1 |


| Premiums Payable Premiums Receivable | (in millions) | 2012 | 2013 | 2014 | 2015 | 2016 | 2017-2026 |


During the second and fourth quarters of fiscal year 2012, SCC observed an increase in third-party activity.
As a result of this third-party activity, SCCs estimate of probable claims increased from its prior expectations, resulting in additional loss provision of approximately $56 million.
These loss provisions were partially offset by changes in assumptions, including a decrease in the rate at which claims have been found to be valid, corresponding to recent trends in reviewed claims as described above, and a decrease in expected future claims related to NIM bonds that had matured, resulting in a net recorded loss provision in discontinued operations of $20.0 million.
During fiscal year 2011, SCC made payments totaling $49.8 million under an indemnity agreement dated April 2008 with a specific counterparty in exchange for a full and complete release of such partys ability to assert representation and warranty claims.
The indemnity agreement was given as part of obtaining the counterpartys consent to SCCs sale of its mortgage servicing business in 2008.
SCC has no remaining payment obligations under this indemnity agreement.
DISCONTINUED OPERATIONS  INDEMNIFICATION OBLIGATIONS  Losses may also be incurred with respect to indemnification claims by underwriters and depositors, and litigation claims by others, with respect to loans and securities SCC originated and sold, as discussed in note 19.
See discussion in note 20 below for indemnification obligations related to the sales of RSM and MCM.
NOTE 19: LITIGATION AND RELATED CONTINGENCIES We are a defendant in a large number of litigation matters, arising both in the ordinary course of business and otherwise, including as described below.
The matters described below are not all of the lawsuits to which we are subject.
In some of the matters, very large and/or indeterminate amounts, including punitive damages, are sought.
U. S.  jurisdictions permit considerable variation in the assertion of monetary damages or other relief.
Jurisdictions may permit claimants not to specify the monetary damages sought or may permit claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court.
In addition, jurisdictions may permit plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters.
We believe that the monetary relief which may be specified in a lawsuit or claim bears little relevance to its merits or disposition value due to this variability in pleadings and our experience in litigating or resolving through settlement numerous claims over an extended period of time.
The outcome of a litigation matter and the amount or range of potential loss at particular points in time may be difficult to ascertain.
Among other things, uncertainties can include how fact finders will evaluate documentary evidence and the credibility and effectiveness of witness testimony, and how trial and appellate courts will apply the law.
Disposition valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and applicable law.
In addition to litigation matters, we are also subject to other claims and regulatory investigations arising out of our business activities, including as described below.
?
Secondary market same store communities are generally communities in markets with populations of more than 1 million but less than 1% of the total public multifamily REIT units or markets with populations of less than 1 million that we have owned and have been stabilized for at least a full 12 months.  ?
Non-same store communities and other includes recent acquisitions, communities in development or lease-up, communities that have been identified for disposition, and communities that have undergone a significant casualty loss.
Also included in non-same store communities are non-multifamily activities.
On the first day of each calendar year, we determine the composition of our same store operating segments for that year as well as adjust the previous year, which allows us to evaluate full period-over-period operating comparisons.
An apartment community in development or lease-up is added to the same store portfolio on the first day of the calendar year after it has been owned and stabilized for at least a full 12 months.
Communities are considered stabilized after achieving 90% occupancy for 90 days.
Communities that have been identified for disposition are excluded from the same store portfolio.
All properties acquired from Post Properties in the Merger remained in the Non-Same Store and Other operating segment during 2017, as the properties were recent acquisitions and had not been owned and stabilized for at least 12 months as of January 1, 2017.
For additional information regarding our operating segments, see Note 14 to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.  Acquisitions One of our growth strategies is to acquire apartment communities that are located in various large or secondary markets primarily throughout the Southeast and Southwest regions of the United States.
Acquisitions, along with dispositions, help us achieve and maintain our desired product mix, geographic diversification and asset allocation.
Portfolio growth allows for maximizing the efficiency of the existing management and overhead structure.
We have extensive experience in the acquisition of multifamily communities.
We will continue to evaluate opportunities that arise, and we will utilize this strategy to increase our number of apartment communities in strong and growing markets.
We acquired the following apartment communities during the year ended December 31, 2017:


| Year ended December 31, 2003 “Qualifying” | (in millions) | Revenue |


OTHER RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS: In July 2006, the FASB issued Interpretation No.48, Accounting for Uncertainty in Income Taxes (FIN 48).
This interpretation clarifies the accounting for uncertainty in income taxes recognized in a companys financial statements in accordance with FASB Statement No.109, Accounting for Income Taxes.
 This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
This interpretation also provides guidance on derecognition, classification,
Under the terms of the ANSYS, Inc.
Long-Term Incentive Plan, in the first quarter of 2013, 2012 and 2011, the Company granted 94,300, 100,000 and 92,500 performance-based restricted stock units, respectively.
Vesting of the full award or a portion thereof is based on the Companys performance as measured by total shareholder return relative to the median percentage appreciation of the NASDAQ Composite Index over a specified measurement period, subject to each participants continued employment with the Company through the conclusion of the measurement period.
The measurement period for the restricted stock units granted pursuant to the Long-Term Incentive Plan is a three-year period beginning January 1 of the year of the grant.
Each restricted stock unit relates to one share of the Companys common stock.
The weighted average fair value of each restricted stock unit granted in 2013, 2012 and 2011 was estimated on the grant date to be $50.05, $33.16 and $32.05, respectively.
The fair value of the restricted stock units was estimated using a Monte Carlo simulation model.
The determination of the fair value of the awards was affected by the grant date and a number of variables, each of which has been identified in the chart below.
Stock-based compensation expense based on the fair value of the award is being recorded from the grant date through the conclusion of the three-year measurement period.
On December 31, 2013, employees earned 92,500 restricted stock units, which will be issued in the first quarter of 2014.
Total compensation expense associated with the awards recorded for the years ended December 31, 2013, 2012 and 2011 was $3.6 million, $2.6 million and $1.6 million, respectively.
Total compensation expense associated with granted awards for the years ending December 31, 2014 and 2015 is expected to be $2.8 million and $1.7 million, respectively.


| Amount (In Millions) | 2010 net revenue | Retail electric price | Net gas revenue | Gas cost recovery asset | Volume/weather | Other | 2011 net revenue |


| 2011 2010 (53 Weeks) 2009 | (In thousands) | Net earnings for the 53/52 week periods | Estimated net earnings for the additional week in fiscal 2010 | Adjusted net earnings | Actual percentage (decrease) increase | Adjusted percentage (decrease) increase |


| 2008 2007 | Equity Ownership | Public Investors (Class A stockholders) | Principle or Affiliate Members (Class B stockholders) | Foundation (Class A stockholders) |


| December 31, 2016In millions 1 Year orLess 1 Through5 Years After5 Years GrossLoans | Commercial | Commercial real estate | Total | Loans with: | Predetermined rate | Floating or adjustable rate | Total |


14.
Accounting for Certain Long-Lived Assets EOG reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a depreciation, depletion and amortization group level to the unamortized capitalized cost of the asset.
The carrying r values for assets determined to be impaired were adjusted to estimated fair value using the Income Approach described in the Fair Value Measurement Topic of the ASC.
In certain instances, EOG utilizes accepted offers from third-party purchasers as the basis for determining fair value.
During 2017, proved oil and gas properties with a carrying amount of $370 million were written down to their fair value of $146 million, resulting in pretax impairment charges of $224 million.
During 2016, proved oil and gas properties with a carrrying amount of $643 million were written down to their fair value of $527 million, resulting in pretax impairment charges of $116 million.
Impairments in 2017, 2016 and 2015 included domestic legacy natural gas assets.
Amortization and impairments of unproved oil and gas property costs, including amortization of capitalized interest, were $211 million, $291 million and $288 million during 2017, 2016 and 2015, respectively.


swap agreement.
Assuming these swap agreements had been cancelled on December 31, 2007, we would have received $18.3 million, net, and future net interest payments would increase assuming LIBOR does not change.
Other than the swap agreements, adverse changes in our credit ratings do not create, increase, or accelerate any liabilities.
In addition, we operate as a holding company in a highly regulated industry.
Our parent company is dependent upon dividends and administrative expense reimbursements from our subsidiaries, most of which are subject to regulatory restrictions.
Cash, cash equivalents and short-term investments at the parent company increased $111.3 million to $535.7 million at December 31, 2007 compared to $424.4 million at December 31, 2006 reflecting dividends received net of funding of additional capital into certain subsidiaries during 2007 in conjunction with growth in Medicare revenues.
See Schedule I to this Form 10-K beginning on page 107 for our parent company only financial information.
Regulatory Requirements Certain of our subsidiaries operate in states that regulate the payment of dividends, loans, or other cash transfers to Humana Inc. , our parent company, and require minimum levels of equity as well as limit investments to approved securities.
The amount of dividends that may be paid to Humana Inc.  by these subsidiaries, without prior approval by state regulatory authorities, is limited based on the entitys level of statutory income and statutory capital and surplus.
In most states, prior notification is provided before paying a dividend even if approval is not required.
Based on the most recent statutory financial statements as of December 31, 2007, we maintained aggregate statutory capital and surplus of $2,905.2 million in our state regulated subsidiaries.
This compares to applicable statutory requirements which aggregated $1,810.5 million.
Although the minimum required levels of equity are largely based on premium volume, product mix, and the quality of assets held, minimum requirements can vary significantly at the state level.
Given our anticipated continued premium growth in 2008, capital requirements will increase.
We expect to fund these increased requirements with capital contributions from Humana Inc. , our parent company, of approximately $200 million in 2008.
Most states rely on risk-based capital requirements, or RBC, to define their required levels of equity discussed above.
RBC is a model developed by the National Association of Insurance Commissioners to monitor an entitys solvency.
This calculation indicates recommended minimum levels of required capital and surplus and signals regulatory measures should actual surplus fall below these recommended levels.
If RBC were adopted by the remaining states and Puerto Rico at December 31, 2007, we would have $966.3 million of aggregate capital and surplus above any of the levels that require corrective action under RBC, or individual state requirements based on the most recent statutory financial statements as of December 31, 2007.


U. S.  COATED PAPERS net sales were $920 million in 2006, $1.6 billion in 2005 and $1.4 billion in 2004.
Operating profits in 2006 were 26% lower than in 2005.
A small operating loss was reported for the business in 2004.
This business was sold in the third quarter of 2006.
During the first two quarters of 2006, sales volumes were up slightly versus 2005.
Average sales price realizations for coated freesheet paper and coated groundwood paper were higher than in 2005, reflecting the impact of previously announced price increases.
However, input costs for energy, wood and other raw materials increased over 2005 levels.
Manufacturing operations were favorable due to higher machine efficiency and mill cost savings.


We recognized other than temporary impairments of our investments in sponsored mutual funds because of declines in fair value below cost for an extended period.
The significant declines in fair value below cost that occurred in 2008 were generally attributable to adverse market conditions.
In addition, income from money market and bond fund holdings was $19.3 million lower than in 2007 due to the significantly lower interest rate environment of 2008.
Lower interest rates also led to substantial capital appreciation on our $40 million holding of U. S.  Treasury Notes that we sold in December 2008 at a $2.6 million gain.
The 2008 provision for income taxes as a percentage of pretax income is 38.4%, up from 37.7% in 2007, primarily to reflect changes in state income tax rates and regulations and certain adjustments made prospectively based on our annual income tax return filings for 2007.


| High Low | Fiscal Year Ended April 2, 2016 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Fiscal Year Ended March 28, 2015 | Fourth Quarter |


| 2004 2003 | Equity securities | Debt securities | Real estate | Cash | Nontraditional investments | 100% |


Loss on Extinguishment of Debt During 2017, we retired $86.7 million of 5.25% tax-exempt bonds, resulting in a non-cash charge of $0.8 million.
During 2016, we incurred a loss on the early extinguishment of debt.
We paid a cash premium of $148.1 million, early tender consideration of $28.7 million and $1.6 million of associated legal and other fees.
We also incurred a non-cash charge related to the proportional share of unamortized discounts and deferred issuance costs of $17.8 million.
The unamortized proportional share of certain cash flow hedges reclassified to earnings as non-cash interest expense was $7.2 million.


| Years Ended December 31, | 2015 | Southwest Region (Navajo Refinery) | Sales of produced refined products: | Gasolines | Diesel fuels | Fuel oil | Asphalt | LPG and other | Total |


| 25 Basis Point Increase 25 Basis Point Decrease | Pension Plans | Discount Rate: | Effect on net periodic benefit cost | Effect on projected benefit obligation | Return on Assets: | Effect on net periodic benefit cost | Postretirement Medical Plans | Discount Rate: | Effect on net periodic benefit cost | Effect on projected benefit obligation | Health Care Cost Trend Rate: | Effect on net periodic benefit cost | Effect on projected benefit obligation |


anticipated or possible short-term cash needs, prevailing interest rates, our investment policy and alternative investment choices.
A majority of our cash and cash equivalents balance is invested in money market mutual funds that invest only in U. S.  Treasury securities or U. S.  government agency securities.
Our exposure to risk is minimal given the nature of the investments.
Our practice is to have our pension plan 100% funded at each year end on a projected benefit obligation basis, while also satisfying any minimum required contribution and obtaining the maximum tax deduction.
Based on our actuarial projections, we estimate that a $14.1 million contribution in 2011 will allow us to meet our funding goal.
However, the amount of the actual contribution is contingent on the actual rate of return on our plan assets during 2011 and the December 31, 2011 discount rate.
Net current deferred tax assets of $18.3 million and $23.8 million are included in other current assets at December 31, 2010 and 2009, respectively.
Total net current deferred tax assets include unrealized losses, stockbased compensation and accrued expenses.
Net long-term deferred tax liabilities were $7.8 billion and $7.6 billion at December 31, 2010 and 2009, respectively.
Net deferred tax liabilities are principally the result of purchase accounting for intangible assets in our various mergers including CBOT Holdings and NYMEX Holdings.
We have a long-term deferred tax asset of $145.7 million included within our domestic long-term deferred tax liability.
This deferred tax asset is for an unrealized capital loss incurred in Brazil related to our investment in BM&FBOVESPA.
As of December 31, 2010, we do not believe that we currently meet the more-likely-than-not threshold that would allow us to fully realize the value of the unrealized capital loss.
As a result, a partial valuation allowance of $64.4 million has been provided for the amount of the unrealized capital loss that exceeds potential capital gains that could be used to offset the capital loss in future periods.
We also have a long-term deferred tax asset related to Brazilian taxes of $125.3 million for an unrealized capital loss incurred in Brazil related to our investment in BM&FBOVESPA.
A full valuation allowance of $125.3 million has been provided because we do not believe that we currently meet the more-likely-than-not threshold that would allow us to realize the value of the unrealized capital loss in Brazil in the future.
Valuation allowances of $49.4 million have also been provided for additional unrealized capital losses on various other investments.
Net long-term deferred tax assets also include a $19.3 million deferred tax asset for foreign net operating losses related to Swapstream.
Our assessment at December 31, 2010 was that we did not currently meet the more-likelythan-not threshold that would allow us to realize the value of acquired and accumulated foreign net operating losses in the future.
As a result, the $19.3 million deferred tax assets arising from these net operating losses have been fully reserved.
Each clearing firm is required to deposit and maintain specified performance bond collateral.
Performance bond requirements are determined by parameters established by the risk management department of the clearing house and may fluctuate over time.
We accept a variety of collateral to satisfy performance bond requirements.
Cash performance bonds and guaranty fund contributions are included in our consolidated balance sheets.
Clearing firm deposits, other than those retained in the form of cash, are not included in our consolidated balance sheets.
The balances in cash performance bonds and guaranty fund contributions may fluctuate significantly over time.
Cash performance bonds and guaranty fund contributions consisted of the following at December 31:


| Number of Shares Purchased [a] Average Price Paid [a] | 2009 | First quarter | Second quarter | Third quarter | Fourth quarter | Total | Remaining number of shares that may yet be repurchased [a] |


Cash Flow from Operating Activities The decrease in operating cash flows for 2007 resulted from timing of cash flows associated with our Medicare Part D offerings, offset by Medicare enrollment growth and improved earnings.
During 2007, we paid $725.5 million to CMS under the risk corridor terms of our 2006 contracts with CMS.
Similarly, the provision for net amounts payable under the risk corridor terms of our 2007 contracts with CMS, which will be paid in 2008, was $102.6 million.
The increase in operating cash flows for 2006 compared to 2005 resulted from Medicare enrollment growth, improved earnings, and the timing of cash flows associated with our Medicare Part D offerings which were new beginning January 1, 2006.
Our 2006 Part D results related to both stand-alone PDP and MA-PD offerings reflected provisions for net amounts payable to CMS under the risk corridor terms of our contracts with CMS.
This risk corridor amount, which was paid in 2007 as discussed above, reflects favorable experience on allowable risk corridor costs during the second half of 2006 compared to the expectations set out in our original annual bid for 2006 contracts with CMS.
The favorable experience was associated with the Medicare Part D portion of our MA-PD offerings as well as our Standard and Enhanced stand-alone plans.
Comparisons of our operating cash flows also are impacted by other changes in our working capital.
The most significant drivers of changes in our working capital are typically the timing of receipts for premiums and ASO fees and payments of benefit expenses.
We illustrate these changes with the following summaries of receivables and benefits payable.
The detail of total net receivables was as follows at December 31, 2007, 2006 and 2005:


Revenue Recognition The Companys Medicaid Managed Care segment generates revenues primarily from premiums received from the states in which it operates health plans.
The Company receives a fixed premium per member per month pursuant to our state contracts.
The Company generally receives premium payments during the month it provides services and recognizes premium revenue during the period in which it is obligated to provide services to its members.
Some states enact premium taxes or similar assessments, collectively premium taxes, and these taxes are recorded as General and Administrative expenses.
Some contracts allow for additional premium related to certain supplemental services provided such as maternity deliveries.
Revenues are recorded based on membership and eligibility data provided by the states, which may be adjusted by the states for updates to this data.
These adjustments have been immaterial in relation to total revenue recorded and are reflected in the period known.
The Companys Specialty Services segment generates revenues under contracts with state programs, healthcare organizations and other commercial organizations, as well as from our own subsidiaries on market-based terms.
Revenues are recognized when the related services are provided or as ratably earned over the covered period of service.
Premium and services revenues collected in advance are recorded as unearned revenue.
For performance-based contracts the Company does not recognize revenue subject to refund until data is sufficient to measure performance.
Premiums and service revenues due to the Company are recorded as premium and related receivables and are recorded net of an allowance based on historical trends and managements judgment on the collectibility of these accounts.
As the Company generally receives payments during the month in which services are provided, the allowance is typically not significant in comparison to total revenues and does not have a material impact on the presentation of the financial condition or results of operations.
Activity in the allowance for uncollectible accounts for the years ended December 31 is summarized below:


| In millions of dollars Carrying value Fair value | Mortgage-backed securities | Due within 1 year | After 1 but within 5 years | After 5 but within 10 years | After 10 years(1) | Total | State and municipal | Due within 1 year | After 1 but within 5 years | After 5 but within 10 years | After 10 years(1) | Total | All other(2) | Due within 1 year | After 1 but within 5 years | After 5 but within 10 years | After 10 years(1) | Total | Total debt securities held-to-maturity | Maximum potential amount of future payments | In billions of dollars | Financial standby letters of credit | Performance guarantees | Derivative instruments deemed to be guarantees | Guarantees of collection of contractual cash flows | Loans sold with recourse | Securities lending indemnifications | Credit card merchant processing | Custody indemnifications and other | Total | In millions of dollars | Year-end CVA reserve balance as calculated using: | CDS spreads | Cash spreads | Difference-1 | Year-to-date pretax gain from the change in CVA reserve that would have been recorded in the income statement as calculated using: | CDS spreads | Cash spreads |


| Commodity Price Increase (Decrease) | Crude Oil & Condensate | 2009 | (Per Bbl) | Year Ended December 31, | United States | Equatorial Guinea | Total Consolidated Operations | Total |


| 2016 2017 2018 | Basic shares outstanding | Dilutive shares | Diluted shares outstanding |


| 2016 2015 2014 | Average risk-free interest rate | Expected dividend yield | Expected volatility | Expected life (years) | Fair value, per share |


| December 31, 2018 FairValue CarryingValue Difference | Monster Beverage Corporation | Coca-Cola European Partners plc | Coca-Cola FEMSA, S.A.B. de C.V. | Coca-Cola HBC AG | Coca-Cola Amatil Limited | Coca-Cola Bottlers Japan Holdings Inc.1 | Embotelladora Andina S.A. | Coca–Cola Consolidated, Inc.2 | Coca-Cola İçecek A.Ş. | Total |


Valuation techniques – Cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost, which approximates fair value.
U. S.  equity securities and international equity securities categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year.
For U. S.  equity securities and international equity securities not traded on an active exchange, or if the closing price is not available, the trustee obtains indicative quotes from a pricing vendor, broker or investment manager.
These securities are categorized as Level 2 if the custodian obtains corroborated quotes from a pricing vendor or categorized as Level 3 if the custodian obtains uncorroborated quotes from a broker or investment manager.
Commingled equity funds categorized as Level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year.
For commingled equity funds not traded on an active exchange, or if the closing price is not available, the trustee obtains indicative quotes from a pricing vendor, broker or investment manager.
These securities are categorized as Level 2 if the custodian obtains corroborated quotes from a pricing vendor.
Fixed income investments categorized as Level 2 are valued by the trustee using pricing models that use verifiable observable market data (e. g. , interest rates and yield curves observable at commonly quoted intervals and credit spreads), bids provided by brokers or dealers or quoted prices of securities with similar characteristics.
Fixed income investments are categorized as Level 3 when valuations using observable inputs are unavailable.
The trustee typically obtains pricing based on indicative quotes or bid evaluations from vendors, brokers or the investment manager.
In addition, certain other fixed income investments categorized as Level 3 are valued using a discounted cash flow approach.
Significant inputs include projected annuity payments and the discount rate applied to those payments.
Certain commingled equity funds, consisting of equity mutual funds, are valued using the NAV.
The NAV valuations are based on the underlying investments and typically redeemable within 90 days.
Private equity funds consist of partnership and co-investment funds.
The NAV is based on valuation models of the underlying securities, which includes unobservable inputs that cannot be corroborated using verifiable observable market data.
These funds typically have redemption periods between eight and 12 years.
Real estate funds consist of partnerships, most of which are closed-end funds, for which the NAV is based on valuation models and periodic appraisals.
These funds typically have redemption periods between eight and 10 years.
Hedge funds consist of direct hedge funds for which the NAV is generally based on the valuation of the underlying investments.
Redemptions in hedge funds are based on the specific terms of each fund, and generally range from a minimum of one month to several months.


Contractual Commitments Purchase Obligations: Purchase obligations arise from long-term contracts for the purchase of commodities and related services, and construction and service agreements.
The commodities and related services include long-term PPAs, natural gas and associated transportation, and coal and associated transportation.
Related-party PPAs are between Consumers and certain affiliates of CMS Enterprises.
Presented in the following table are CMS Energys and Consumers contractual purchase obligations at December 31, 2017 for each of the periods shown:


| Committed Unsecured CommittedSecured Uncommitted Secured Uncommitted Unsecured Total Financing Arrangements | (in 000’s) | RJ&A (with third-party lenders) | RJ Bank | Total |


| 2011 $65.1 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total |


| Years ended December 31, 2012 2011 2010 | Net earnings | Non-cash items | Changes in working capital | Net cash provided by operating activities | Net cash (used)/provided by investing activities | Net cash used by financing activities | Effect of exchange rate changes on cash and cash equivalents | Net increase/(decrease) in cash and cash equivalents | Cash and cash equivalents at beginning of year | Cash and cash equivalents at end of period |


| Pension Benefits OtherPostretirementBenefits | 2013 | Fair value of plan assets January 1 | Actual return on plan assets | Company contributions | Effects of exchange rate changes | Benefits paid | Settlements | Other | Fair value of plan assets December 31 | Benefit obligation January 1 | Service cost | Interest cost | Actuarial (gains) losses | Benefits paid | Effects of exchange rate changes | Plan amendments | Curtailments | Termination benefits | Settlements | Other | Benefit obligation December 31 | Funded status December 31 | Recognized as: | Other assets | Accrued and other current liabilities | Other noncurrent liabilities |


| (millions of dollars) 2011 2010 Variance 2011 vs. 2010 2009 Variance 2010 vs. 2009 | Operating activities | Investing activities | Financing activities | Net change | Balance at beginning of period | Balance at end of period | (millions of dollars) | Operating activities | Investing activities | Financing activities | Net change | Balance at beginning of period | Balance at end of period | TargetAllocation Range 2017 | Asset Category | Equity Securities | Debt Securities | Real Estate | Total |


| Year Ended December 31, | (in thousands) | United States | Japan | Germany | Canada | Other European | Other international | Total revenue |


| Gross Prescription   Drug Subsidies  (In millions) Net | 2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 |


| Year Ended December 31 2008 2007(a) | Gas production (Bcf) | Gas sales (Bcf) | Oil production/sales (Mbbls) | NGL production/sales (Mbbls) | Equivalent production (Bcfe) | Equivalent sales (Bcfe) | Average realized prices, without hedging results: | Gas (per Mcf) | NGL (per Bbl) | Oil (per Bbl) | Equivalent (per Mcfe) |


| Restricted Stock Shares -000 Weighted AverageGrant-Date Fair Value | Outstanding at 30 September 2017 | Vested | Outstanding at 30 September 2018 |


| Year Ended December 31, | (in thousands) | United States | Germany | Japan | Canada | Other European | Other international | Total revenue |


| Range Actual | USRIP | Large-Cap Equity | Small- and Mid-Cap Equity | International Equity | Private Equity | Hedge Funds | Real Assets | Fixed Income | Cash | Twelve Months Ended December 31, | 2017 vs. 2016 | Operating Revenue | (In millions) | U.S. Information Solutions | International | Workforce Solutions | Global Consumer Solutions | Consolidated operating revenue |


| Year ended December 31,(in millions, except per share and ratio data) 2007 2006 Change | Selected income statement data | Total net revenue | Provision for credit losses | Total noninterest expense | Income from continuing operations | Income from discontinued operations | Net income | Diluted earnings per share | Income from continuing operations | Net income | Return on common equity | Income from continuing operations | Net income |


LIQUIDITY AND CAPITAL RESOURCES The Company continues to manage its businesses to maximize operating cash flows as the primary source of liquidity.
We supplement operating cash with short-term debt from the commercial paper market and with long-term borrowings.
We continue to balance our cash and financing uses through investment in our existing core businesses, acquisition activity, share repurchases and dividends.
Cash Flow Summary Our cash flows from operating, investing and financing activities, as reflected in the Consolidated Statement of Cash Flows for the years ended December 31.2006, 2005 and 2004 are summarized as follows:


Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2013 and 2012 are presented in the table below.
For the non-qualified plans not subject to ERISA or non-U.
S.  pension plans, funding strategies vary due to legal requirements and local practices.


| 2017 2018 2019 2020 2021 Total | CMS Energy, including Consumers | Consumers | Enterprises | Total CMS Energy | Consumers | Electric utility operations | Gas utility operations | Total Consumers |


| 2013 2012 2011 | Pension expense | Special terminations, settlements, and curtailments (included above) | Weighted average discount rate | Weighted average expected rate of return on plan assets | Weighted average expected rate of compensation increase |


DISCONTINUED AND HELD-FOR-SALE OPERATIONS Automotive Sector Held-for-sale Operations.
Consistent with our objectives to build on the basics and focus on core businesses, management committed in December 2004 to sell certain consolidated dealerships in the Asia Pacific and Africa/Mazda segment.
The sale of these dealerships will allow us to concentrate on the production and marketing of our products in the Asia Pacific region rather than the day-to-day retailing operations.
We expect to sell these operations during the next twelve months and have reported them as held for sale.
We recorded a pre-tax charge of $16 million reflected in Income/(loss) before income taxes related to the anticipated loss on the sale of the net assets.
The charge represents the difference between the anticipated selling price of the net assets, less costs to sell them, and their recorded book values.
We also recorded a pre-tax goodwill impairment of $64 million reflected in Income/(loss) before income taxes related to the disposal of these operations.
At December 31, 2004, the assets of the held-for-sale operations consisted primarily of receivables and inventory totaling approximately $49 million and $114 million, respectively


| December 31, 2018 | AmortizedCost | ($ in millions) | Corporate & government securities: | Maturing in 2019 | Maturing in 2020 | Maturing in 2021 | Maturing in 2022 | Maturing in 2023 | Maturing in 2024 | Maturing in 2025 | Maturing in 2026 | Maturing in 2027 | Maturing in 2028 | Maturing in 2029 | Maturing in 2030 and beyond | Total corporate & government securities | Asset-backed securities | Commercial mortgage-backed securities | Residential mortgage-backed securities | Total fixed maturities |


| Year Ended December 31 | 2005 | (In thousands) | Revenues | Expenses | Income taxes (benefit) | Net income (loss) |


| 2006 2005 2004 | (Dollars in millions) | Net sales | % change compared with prior year | Segment profit | % change compared with prior year |


| 2008 2007 2006 | Risk-free interest rate | Expected life (years) | Expected dividend yield | Volatility | Weighted Average Black-Scholes fair value per share at date of grant |


In connection with the Internal Revenue Service’s (IRS) examination of Ball’s consolidated income tax returns for the tax years 2000 through 2004, the IRS has proposed to disallow Ball’s deductions of interest expense incurred on loans under a company-owned life insurance plan that has been in place for more than 20 years.
Ball believes that its interest deductions will be sustained as filed and, therefore, no provision for loss has been recorded.
The total potential liability for the audit years 1999 through 2004, unaudited year 2005 and an estimate of the impact on 2006 is approximately $31 million, excluding related interest.
The IRS has withdrawn its proposed adjustments for any penalties.
See Note 13 accompanying the consolidated financial statements within Item 8 of this Annual Report.
Results of Equity Affiliates Equity in the earnings of affiliates in 2006 is primarily attributable to our 50 percent ownership in packaging investments in the U. S.  and Brazil.
Earnings in 2004 included the results of a minority-owned aerospace business, which was sold in October 2005, and a $15.2 million loss representing Ball’s share of a provision for doubtful accounts relating to its 35 percent interest in Sanshui JFP (discussed above in “Metal Beverage Packaging, Europe/Asia”).
After consideration of the PRC loss, earnings were $14.7 million in 2006 compared to $15.5 million in 2005 and $15.8 million in 2004.
CRITICAL AND SIGNIFICANT ACCOUNTING POLICIES AND NEW ACCOUNTING PRONOUNCEMENTS For information regarding the company’s critical and significant accounting policies, as well as recent accounting pronouncements, see Note 1 to the consolidated financial statements within Item 8 of this report.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Cash Flows and Capital Expenditures Cash flows from operating activities were $401.4 million in 2006 compared to $558.8 million in 2005 and $535.9 million in 2004.
Management internally uses a free cash flow measure: (1) to evaluate the company’s operating results, (2) for planning purposes, (3) to evaluate strategic investments and (4) to evaluate the company’s ability to incur and service debt.
Free cash flow is not a defined term under U. S.  generally accepted accounting principles, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.
The company defines free cash flow as cash flow from operating activities less additions to property, plant and equipment (capital spending).
Free cash flow is typically derived directly from the company’s cash flow statements; however, it may be adjusted for items that affect comparability between periods.
An example of such an item included in 2006 is the property insurance proceeds for the replacement of the fire-damaged assets in our Hassloch, Germany, plant, which is included in capital spending amounts.
Based on this, our consolidated free cash flow is summarized as follows:


| 2010 2009 | Remaining net rentals | Estimated unguaranteed residual value | Non-recourse mortgage debt | Unearned and deferred income | Net investment in leveraged lease |


| December 31, 2009 | Cost or Amortized Cost | Less than | 20% | (In millions, except number of securities) | Fixed Maturity Securities: | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total | Percentage of cost or amortized cost | Equity Securities: | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total | Percentage of cost | December 31, 2008 | Cost or Amortized Cost | Less than | 20% | (In millions, except number of securities) | Fixed Maturity Securities: | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total | Percentage of cost or amortized cost | Equity Securities: | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total | Percentage of cost |


| PaymentDate Amountper Share TotalAmount (in millions) | 2015 | 2016 | 2017 |


| Years Ended | September 30, 2006 | Amount | Total Revenues | Operating Income (Loss) |


| Year Ended December 31, 2014 Year Ended December 31, 2013 | Dollars inMillions | Net sales | Cost of sales | Gross profit | Selling and administrative expenses | Advertising expense | Income from operations | Interest expense, net | Net loss on extinguishments of long-term debt | Other income, net | Income before income taxes | Income tax expense | Net income |


| Period Total Number of Shares Purchased-1 Average Price Paid per Share Total Number of Shares Purchased as Part of  Publicly Announced  Plans or Programs Approximate Dollar Value of Shares that May Yet be PurchasedUnder the Plans or Programs  (in millions) | October 2010 | November 2010 | December 2010 | Total Fourth Quarter |


Our foreign earnings are generally subject to lower statutory tax rates than our United States earnings.
Our provision for income taxes for the fiscal year ended December 31, 2016 is primarily attributable to federal, state and foreign income taxes on our fiscal 2016 income and includes the tax benefit resulting from the permanent reinstatement of the United States research tax credit in December 2015.
Our provision for income taxes for the fiscal year ended December 31, 2016 includes $17.2 million of tax benefit related to stock-based compensation that vested or settled during the period.
Our provision for income taxes for the fiscal year ended January 2, 2016 was primarily attributable to federal, state and foreign income taxes on our fiscal 2015 income, which was partially offset by $13.8 million of tax benefit related to the effective settlement of a tax examination of a foreign subsidiary.
Our provision for income taxes included a tax benefit of $10.1 million resulting from the enactment of the United States research tax credit in December 2015.
Our provision for income taxes for the fiscal year ended January 3, 2015 primarily resulted from federal, state and foreign income taxes on our fiscal 2014 income.
Our provision for income taxes included a tax benefit of $8.1 million resulting from the enactment of the United States research tax credit in December 2014.
Our future effective tax rates may be materially impacted by tax amounts associated with our foreign earnings at rates different from the United States federal statutory rate, research credits, the tax impact of stock-based compensation, accounting for uncertain tax positions, business combinations, closure of statutes of limitations or settlement of tax audits, changes in valuation allowance and changes in tax law.
A significant amount of our foreign earnings is generated by our subsidiaries organized in Ireland and Hungary.
Our future effective tax rates may be adversely affected if our earnings were to be lower in countries where we have lower statutory tax rates or if we were to repatriate certain foreign earnings on which United States taxes have not been previously accrued.
We currently expect that our fiscal 2017 effective tax rate will be similar to our fiscal 2016 effective tax rate.
For additional discussion about how our effective tax rate could be affected by various risks, see Part I, Item 1A, “Risk Factors.
” For further discussion regarding our income taxes, see Note 10 in the notes to consolidated financial statements.


Comparable?Systemwide North American Properties


KCP&L Utility Gross Margin and MWh Sales The following table summarizes KCP&L's utility gross margin and MWhs sold.


ACQUISITIONS AND DISPOSITIONS 2005 Acquisitions During the third quarter, we purchased from CTF Holdings Ltd.  and certain of its affiliates (collectively CTF) 13 properties (in each case through a purchase of real estate, a purchase of the entity that owned the hotel, or an assignment of CTFs leasehold rights) and certain joint venture interests from CTF for an aggregate price of $381 million.
Prior to the sale, all of the properties were operated by us or our subsidiaries.
We plan to sell eight of the properties we have purchased to date to third-party owners, and the balances related to these full-service properties are classified within the Assets held for sale and Liabilities of assets held for sale captions in our Consolidated Balance Sheet.
One operating lease has terminated.
We operate the four remaining properties under leases, three of which expire by 2012.
Under the purchase and sale agreement we signed with CTF in the second quarter of 2005, we remain obligated to purchase two additional properties for $17 million, the acquisition of which was postponed pending receipt of certain third-party consents.
On the closing date we and CTF also modified management agreements on 29 other CTF-leased hotels, 28 located in Europe and one located in the United States.
We became secondarily liable for annual rent payments for certain of these hotels when we acquired the Renaissance Hotel Group N. V.  in 1997.
We continue to manage 16 of these hotels under new long-term management agreements; however, due to certain provisions in the management agreements, we account for these contracts as operating leases.
CTF placed approximately $89 million in trust accounts to cover possible shortfalls in cash flow necessary to meet rent payments under these leases.
In turn, we released CTF from its guarantees in connection with these leases.
Approximately $79 million remained in these trust accounts at the end of 2005.
Our financial statements reflect us as lessee on these hotels.
Minimum lease payments relating to these leases are as follows: $32 million in 2006; $33 million in 2007; $33 million in 2008; $33 million in 2009; $33 million in 2010; and $231 million thereafter, for a total of $395 million.
For the remaining 13 European leased hotels, CTF may terminate management agreements with us if and when CTF obtains releases from landlords of our back-up guarantees.
Pending completion of the CTF-landlord agreements, we continue to manage these hotels under modified management agreements and remain secondarily liable We compute the effect of dilutive securities using the treasury stock method and average market prices during the period.
We determine dilution based on earnings from continuing operations.
In accordance with FAS No.128, Â¡Â°Earnings per Share,Â¡Â± we did not include the following stock options in our calculation of diluted earnings per share because the option exercise prices were greater than the average market price for our Class A Common Stock for the applicable period: (a) for 2005, no stock options; (b) for 2004, no stock options; and (c) for 2003, 5.7 million stock options.


NOTE CDIVESTITURES In January 2011, we closed the sale of our Neurovascular business to Stryker Corporation for a purchase price of $1.500 billion in cash.
At the time of divestiture, due to our continuing involvement in the operations of the Neurovascular business following the transaction, the divestiture did not meet the criteria for pre sentation as a discontinued operation.
Our sales related to our divested Neurovascular business have declined as the various transition services and supply agreements have terminated.
We recorded a gain of $12 million during 2014 associated with the transaction and we recorded revenue related to the Neurovascular business following its divestiture of $4 million in 2014.


| 2015 2014 | (in millions) | Individual annuities | Group annuities | Guaranteed investment contracts and guaranteed interest accounts | Funding agreements | Interest-sensitive life contracts | Dividend accumulation and other | Total policyholders’ account balances |


Goodwill additions for 2006 in our ONEOK Partners segment include $7.5 million related to the consolidation of Guardian Pipeline, of which $5.7 million relates to the purchase of the 66-2/3 percent interest not previously owned by ONEOK Partners, and $2.1 million related to the incremental 1 percent acquisition in an affiliate that was previously accounted for under the equity method.
Following ONEOK Partners acquisition of the additional 1 percent interest, we began consolidating the entity.


policies and procedures, multiple independent sources of information are obtained for forward price curves used to value commodity derivatives.
Fair value and changes in fair value of commodity derivatives are reported on a monthly basis to the Companies’ risk committees, comprised of officers and employees of the Companies that oversee energy hedging at the Utilities and the Clean Energy Businesses.
The risk management group reports to the Companies’ Vice President and Treasurer


Stock Performance Graph The following graph compares the most recent five-year performance of the Companys common stock with (1) the Standard & Poors (S&P) 500?
Index, (2) the S&P 500?
Materials Index, a group of 25 companies categorized by Standard & Poors as active in the materials market sector, (3) the S&P Aerospace & Defense Select Industry Index, a group of 33 companies categorized by Standard & Poors as active in the aerospace & defense industry and (4) the S&P 500?
Industrials Index, a group of 69 companies categorized by Standard & Poors as active in the industrials market sector.
The graph assumes, in each case, an initial investment of $100 on December 31, 2013, and the reinvestment of dividends.
Historical prices prior to the separation of Alcoa Corporation from the Company on November 1, 2016, have been adjusted to reflect the value of the Separation transaction.
The graph, table and related information shall not be deemed to be filed with the SEC, nor shall such information be incorporated by reference into future filings under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing.
Please note that the Company intends to replace the S&P 500?
Materials Index with the S&P Aerospace & Defense Select Industry Index and the S&P 500?
Industrials Index in subsequent stock performance graphs.
We believe that the companies and industries represented in the S&P Aerospace & Defense Select Industry Index and the S&P 500?
Industrials Index better reflect the markets in which the Company currently participates.
All three indices are represented in the graph below.


| Payments Due in Less  Than1 Year Payments Due in  1-3  Years Payments  Due in  4-5  Years Payments Due in More  Than5 Years Total | Long-term debt | Operating leases | Purchase obligations | Other obligations | Total |


| Year Ended December | $ in millions | Allowance for loan losses | Beginning balance | Charge-offs | Provision | Other | Ending balance | Allowance for losses on lendingcommitments | Beginning balance | Provision | Other | Ending balance |


| Net sales $45,366 | Net earnings | Basic earnings per common share | Diluted earnings per common share |


| Shares Under Weighted Average Weighted   Average   Remaining   Contractual   Term  (Years) Aggregate   Intrinsic   Value -1  (In millions) | Option | Outstanding at January 1, 2010 | Granted -2 | Exercised | Expired | Forfeited | Outstanding at December 31, 2010 | Aggregate number of stock options expected to vest at December 31, 2010 | Exercisable at December 31, 2010 |


| Final Purchase Price Allocation | Non-current assets | Property and equipment | Intangible assets -1 | Other non-current liabilities | Fair value of net assets acquired | Goodwill -2 | Fiscal Year | 2006 | (Thousands of dollars and shares except per share data and ratios) | Statement of Earnings Data: | Net revenues | Net earnings before cumulative effect of accounting change | Per Common Share Data: | Earnings before cumulative effect of accounting change | Basic | Diluted | Cash dividends declared | Balance Sheet Data: | Total assets | Total long-term debt | Ratio of Earnings to Fixed Charges-1 | Weighted Average Number of Common Shares: | Basic | Diluted |