Financing The Companys total long-term debt, net of unamortized discount, at December 31, 2002, was $977 million compared to $837 million at December 31, 2001.
If the $125 million AMCCO debt had been included, the total long-term debt would have been $962 million at December 31, 2001.
The ratio of debt-to-book capital (defined as the Companys total debt plus its equity) was 50 percent at December 31, 2002, compared with 47 percent at December 31, 2001.


Results of Operations The following table sets forth items derived from our consolidated statements of operations for the years ended December 31, 2015, 2014 and 2013:
(1) Includes EBITDA related to discontinued operations of $7.9 million for the year ended December 31, 2013.
EBITDA represents earnings before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization.
Amounts shown for EBITDA, as adjusted (which we also refer to as “Normalized EBITDA”), further remove (from EBITDA) the impact of certain cash and non-cash charges related to acquisitions, as well as certain carried interest incentive compensation expense.
Neither EBITDA nor EBITDA, as adjusted, is a recognized measurement under U. S.  generally accepted accounting principles, or GAAP, and when analyzing our operating performance, investors should use them in addition to, and not as an alternative for, net income as determined in accordance with GAAP.
Because not all companies use identical calculations, our presentation of these measures may not be comparable to similarly titled measures of other companies.


| As of December 31 (in millions) 2013 2012 2011 2010 2009 | Commercial Banking: | Commercial real estate -1 | Commercial and industrial -1 | Equipment financing | Total Commercial Banking | Retail: | Residential mortgage: | Adjustable-rate | Fixed-rate | Total residential mortgage | Consumer: | Home equity | Other consumer | Total consumer | Total Retail | Total loans |


Our technology-related intangible assets that are not subject to amortization represent technical processes, intellectual property and/or institutional understanding acquired through business combinations that are fundamental to the on-going operations of our business and have no limit to their useful life.
Our technologyrelated intangible assets that are not subject to amortization are comprised primarily of certain acquired balloon and other technology, which is foundational to our continuing operations within the Cardiovascular market and other markets within interventional medicine.
We assess our indefinite-lived intangible assets at least annually for impairment and reassess their classification as indefinite-lived assets.
We assess qualitative factors to determine whether the existence of events and circumstances indicate that it is more likely than not that our indefinite-lived intangible assets are impaired.
If we conclude that it is more likely than not that the asset is impaired, we then determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with FASB ASC Topic 350.


(1) Reflects a reduction in the commitments resulting from the Lehman Brothers bankruptcy, which reduced the credit facilities by $73.3 million, collectively.
(2) Net of credit facility borrowings, issued and outstanding letters of credit and commercial paper borrowings.
The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.  ?
Each credit facility has one financial covenant requiring that the debt-to-total-capitalization ratio of each entity be less than or equal to 65 percent with which all were in compliance at Dec.  31, 2008 and 2007.
If Xcel Energy or any of its utility subsidiaries do not comply with the covenant, it is deemed an event of default and any outstanding amounts due under the facility can be declared due by the lender.  ?
Each credit facility has a cross default provision that provides the borrower will be in default on its borrowings under the facility if any of its subsidiaries, comprising more than 15 percent of the consolidated assets, defaults on any of its indebtedness greater than $50 million.  ?
The interest rates under these lines of credit are based on either the agent banks prime rate or the applicable LIBOR, plus a borrowing margin based on the applicable debt rating.  ?
The commitment fees, also based on applicable debt ratings, are calculated on the unused portion of the lines of credit at 8 annual basis points for Xcel Energy, PSCo and SPS, and at 6 annual basis points for NSP-Minnesota.
Xcel Energy and its utility subsidiaries have $2.2 billion in senior unsecured revolving credit facilities that mature in December 2011.
Xcel Energy and its utility subsidiaries have the right to request an extension of the final maturity date by one year.
The maturity extension is subject to majority bank group approval.  ?
At Dec.  31, 2008, Xcel Energy had short-term borrowings of $125.0 million on this line of credit.
In addition, the credit facilities were used to provide backup for $330.3 million of commercial paper outstanding and $23.0 million of letters of credit.
A reconciliation of the beginning and ending aggregate carrying amounts of Xcel Energys AROs is shown in the table below for the 12 months ended Dec.  31, 2008 and Dec.  31, 2007, respectively


| Unrecognized Tax Benefits 2013 2012 2011 | Balance at beginning of year | Additions for tax positions of the current year | Additions for tax positions of prior years | Reductions for tax positions of prior years | Settlements | Statute of limitations expiration | Foreign currency translation | Balance at End of Year |


| Year Ended December 31, 2013 to 2014 % Change 2012 to 2013 % Change | 2014 | (in thousands) | Research and development | Research and development as a percentage of revenue |


| Name Date of   Issuance Number of   Shares Price   per Share Administrative   Fee Total Purchase Price | David S. Haffner | 11/20/08 | 2/09/09 | 2/10/09 | 2/12/09 | 2/17/09 | 2/18/09 | 2/20/09 | 2/23/09 | Totals | Jack D. Crusa |


| (Dollars in millions) 2008 2007 | Net interest income-1 | As reported | Impact of market-based net interest income-2 | Core net interest income | Impact of securitizations-3 | Core net interest income – managed basis | Average earning assets | As reported | Impact of market-based earning assets-2 | Core average earning assets | Impact of securitizations-4 | Core average earning assets – managed basis | Net interest yield contribution-1 | As reported | Impact of market-based activities-2 | Core net interest yield on earning assets | Impact of securitizations | Core net interest yield on earning assets – managed basis |


1.
Weighted average interest rate after giving effect to fair value hedges used to convert these fixed-rate obligations into floating-rate obligations.
See Note 7 for further information about hedging activities.
See below for information about interest rates on junior subordinated debt.2.
Par amount and carrying amount of subordinated debt issued by Group Inc.  was $13.85 billion and $16.80 billion, respectively, as of December 2012, and $13.75 billion and $16.80 billion, respectively, as of December 2011.
Junior Subordinated Debt Junior Subordinated Debt Issued to APEX Trusts.
In 2007, Group Inc.  issued a total of $2.25 billion of remarketable junior subordinated debt to Goldman Sachs Capital II and Goldman Sachs Capital III (APEX Trusts), Delaware statutory trusts.
The APEX Trusts issued $2.25 billion of guaranteed perpetual Normal Automatic Preferred Enhanced Capital Securities (APEX) to third parties and a de minimis amount of common securities to Group Inc.  Group Inc.  also entered into contracts with the APEX Trusts to sell $2.25 billion of Group Inc.  perpetual non-cumulative preferred stock (the stock purchase contracts).
See Note 19 for more information about the preferred stock that Group Inc.  has issued in connection with the stock purchase contracts.
The firm accounted for the stock purchase contracts as equity instruments and, accordingly, recorded the cost of the stock purchase contracts as a reduction to additional paid-in capital.
During the first quarter of 2012, pursuant to a remarketing provided for by the initial terms of the junior subordinated debt, Goldman Sachs Capital II sold all of its $1.75 billion of junior subordinated debt to Murray Street Investment Trust I (Murray Street Trust), a new trust sponsored by the firm.
On June 1, 2012, pursuant to the stock purchase contracts, Goldman Sachs Capital II used the proceeds of this sale to purchase shares of Group Inc. s Perpetual Non-Cumulative Preferred Stock, Series E (Series E Preferred Stock).
During the third quarter of 2012, pursuant to a remarketing provided for by the initial terms of the junior subordinated debt, Goldman Sachs Capital III sold all of its $500 million of junior subordinated debt to Vesey Street Investment Trust I (Vesey Street Trust), a new trust sponsored by the firm.
On September 4, 2012, pursuant to the stock purchase contracts, Goldman Sachs Capital III used the proceeds of this sale to purchase shares of Group Inc. s Perpetual Non-Cumulative Preferred Stock, Series F (Series F Preferred Stock).
In connection with the remarketing of the junior subordinated debt to the Murray Street Trust and Vesey Street Trust (together, the 2012 Trusts), pursuant to the terms of the junior subordinated debt, the interest rate and other terms were modified.
Following such sales, the firm pays interest semi-annually on the $1.75 billion of junior subordinated debt held by the Murray Street Trust at a fixed annual rate of 4.647% and the debt matures on March 9, 2017 and on the $500 million of junior subordinated debt held by the Vesey Street Trust at a fixed annual rate of 4.404% and the debt matures on September 1, 2016.
To fund the purchase of the junior subordinated debt, the 2012 Trusts issued an aggregate of $2.25 billion of senior guaranteed trust securities.
The 2012 Trusts are required to pay distributions on their senior guaranteed trust securities in the same amounts and on the same dates that they are scheduled to receive interest on the junior subordinated debt they hold, and are required to redeem their respective senior guaranteed trust securities upon the maturity or earlier redemption of the junior subordinated debt they hold.
Group Inc.  fully and unconditionally guarantees the payment of these distribution and redemption amounts when due on a senior basis and, as such, the $2.25 billion of junior subordinated debt held by the 2012 Trusts for the benefit of investors is no longer classified as junior subordinated debt.


Commitments to extend credit generally have fixed expiration dates, are variable-rate, and contain clauses that permit Huntington to terminate or otherwise renegotiate the contracts in the event of a significant deterioration in the customer’s credit quality.
These arrangements normally require the payment of a fee by the customer, the pricing of which is based on prevailing market conditions, credit quality, probability of funding, and other relevant factors.
Since many of these commitments are expected to expire without being drawn upon, the contract amounts are not necessarily indicative of future cash requirements.
The interest rate risk arising from these financial instruments is insignificant as a result of their predominantly short-term, variable-rate nature.
Standby letters-of-credit are conditional commitments issued to guarantee the performance of a borrower to a third party.
These guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions.
Most of these arrangements mature within two years.
The carrying amount of deferred revenue associated with these guarantees was $1.4 million and $1.6 million at December 31, 2012 and 2011, respectively.
Through the Company’s credit process, Huntington monitors the credit risks of outstanding standby letters-of-credit.
When it is probable that a standby letter-of-credit will be drawn and not repaid in full, losses are recognized in the provision for credit losses.
At December 31, 2012, Huntington had $515 million of standby letters-of-credit outstanding, of which 80% were collateralized.
Included in this $515 million total are letters-of-credit issued by the Bank that support securities that were issued by customers and remarketed by The Huntington Investment Company, the Company’s broker-dealer subsidiary.
Huntington uses an internal loan grading system to assess an estimate of loss on its loan and lease portfolio.
The same loan grading system is used to help monitor credit risk associated with standby letters-of-credit.
Under this risk rating system as of December 31, 2012, approximately $93 million of the standby letters-of-credit were rated strong with sufficient asset quality, liquidity, and good debt capacity and coverage, approximately $393 million were rated average with acceptable asset quality, liquidity, and modest debt capacity; and approximately $29 million were rated substandard with negative financial trends, structural weaknesses, operating difficulties, and higher leverage.
Commercial letters-of-credit represent short-term, self-liquidating instruments that facilitate customer trade transactions and generally have maturities of no longer than 90 days.
Commitments to sell loans Huntington enters into forward contracts relating to its mortgage banking business to hedge the exposures from commitments to make new residential mortgage loans with existing customers and from mortgage loans classified as loans held for sale.
At December 31, 2012 and 2011, Huntington had commitments to sell residential real estate loans of $849.8 million and $629.0 million, respectively.
These contracts mature in less than one year.


NOTE 3 INDUSTRY SEGMENT INFORMATION Financial information by industry segment and geographic area for 2009, 2008 and 2007 is presented on pages 47 and 48.
Effective January 1, 2008, the Company changed its method of allocating corporate overhead expenses to its business segments to increase the expense amounts allocated to these businesses in reports reviewed by its chief executive officer to facilitate performance comparisons with other companies.
Accordingly, the Company has revised its presentation of industry segment operating profit to reflect this change in allocation method, and has adjusted all comparative prior period information on this basis.


| Asset retirement liability as of September 27, 2003 $7.2 | Additional asset retirement obligations recognized | Accretion recognized | Asset retirement liability as of September 25, 2004 | Additional asset retirement obligations recognized | Accretion recognized | Asset retirement liability as of September 24, 2005 |


| Location Operations Conducted ApproximateSquare Feet LeaseExpirationDates | New Haven, Connecticut | Dublin, Ireland | Athlone, Ireland | Lexington, Massachusetts | Bogart, Georgia | Smithfield, Rhode Island | Zurich, Switzerland |


The completion factor method is used for the months of incurred claims prior to the most recent three months because the historical percentage of claims processed for those months is at a level sufficient to produce a consistently reliable result.
Conversely, for the most recent three months of incurred claims, the volume of claims processed historically is not at a level sufficient to produce a reliable result, which therefore requires us to examine historical trend patterns as the primary method of evaluation.
Changes in claim processes, including receipt cycle times, claim inventory levels, recoveries of overpayments, outsourcing, system conversions, and processing disruptions due to weather or other events affect views regarding the reasonable choice of completion factors.
The receipt cycle time measures the average length of time between when a medical claim was initially incurred and when the claim form was received.
Increased electronic claim submissions from providers have decreased the receipt cycle time over the last few years.
For example, the average receipt cycle time has decreased from 15.9 days in 2006 to 15.0 days in 2008 which represents a 6.0% reduction in cycle time over the three year period.
If claims are submitted or processed on a faster (slower) pace than prior periods, the actual claim may be more (less) complete than originally estimated using our completion factors, which may result in reserves that are higher (lower) than required.
Medical cost trends potentially are more volatile than other segments of the economy.
The drivers of medical cost trends include increases in the utilization of hospital facilities, physician services, prescription drugs, and new medical technologies, as well as the inflationary effect on the cost per unit of each of these expense components.
Other external factors such as government-mandated benefits or other regulatory changes, increases in medical services capacity, direct to consumer advertising for prescription drugs and medical services, an aging population, catastrophes, and epidemics also may impact medical cost trends.
Internal factors such as system conversions, claims processing cycle times, changes in medical management practices and changes in provider contracts also may impact our ability to accurately predict estimates of historical completion factors or medical cost trends.
All of these factors are considered in estimating IBNR and in estimating the per member per month claims trend for purposes of determining the reserve for the most recent three months.
Additionally, we continually prepare and review follow-up studies to assess the reasonableness of the estimates generated by our process and methods over time.
The results of these studies are also considered in determining the reserve for the most recent three months.
Each of these factors requires significant judgment by management.
The completion and claims per member per month trend factors are the most significant factors impacting the IBNR estimate.
The portion of IBNR estimated using completion factors for claims incurred prior to the most recent three months is less variable than the portion of IBNR estimated using trend factors.


ASSETS MEASURED AND RECORDED AT FAIR VALUE ON A NON-RECURRING BASIS Our non-marketable equity securities, equity method investments, and certain non-financial assets, such as intangible assets and property, plant and equipment, are recorded at fair value only if an impairment or observable price adjustment is recognized in the current period.
If an impairment or observable price adjustment is recognized on our non-marketable equity securities during the period, we classify these assets as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.
We classified non-marketable equity securities and non-marketable equity method investments as Level 3.
Impairments recognized on these investments held as of December 29, 2018 were $416 million ($537 million held as of December 30, 2017 and $153 million held as of December 31, 2016).


2012 COMPARED TO 2011 Price increases in the segment contributed 0.5% to sales growth on a year-over-year basis during 2012 as compared to 2011 and are reflected as a component of the change in sales from existing businesses.
Sales in the segment's instrument businesses declined at a high-single digit rate during 2012 as compared to 2011, as lower demand for most product categories more than offset modest sales increases of service solutions.
Instrument demand was weak in all major geographies although the North American market showed improvement in the fourth quarter of 2012 compared to the results reported during the first nine months of 2012.
Europe and Japan continued to remain weak in the fourth quarter of 2012.
Sales in the segment's communications businesses grew at a high-single digit rate during 2012 compared to 2011 with strong growth in North America and Western Europe in the first six months of 2012 moderating in the second half of 2012 due primarily to project timing and difficult prior year comparisons.
Demand for network management solutions and, to a lesser extent, core network enterprise solutions drove the 2012 growth.
Operating profit margins declined 150 basis points during 2012 as compared to 2011.
Year-over-year operating profit margin comparisons were adversely impacted by 120 basis points as lower instrument sales volumes and incremental year-over-year costs associated with various sales, marketing and product development growth investments more than offset the favorable impacts of increased sales volumes of higher operating profit margin communication business products and incremental yearover-year cost savings associated with ongoing productivity improvement initiatives, including the restructuring actions taken in 2012 and 2011.
The incremental net dilutive effect of acquired businesses adversely impacted year-over-year operating profit margin comparisons by 30 basis points.


| Year Ended December 31 2005 2004 Restated(a) 2003 Restated(a) 2002 Restated(a) 2001 Restated(a) | (In millions, except per share data) | Results of Operations: | Revenues | Income (loss) before taxes and minority | interest | Income (loss) from continuing operations | Discontinued operations, net | Cumulative effect of changes in | accounting principles, net | Net income (loss) | Income (loss) attributable to: | Loews common stock: | Income (loss) from continuing | operations | Discontinued operations, net | Cumulative effect of changes in | accounting principles, net | Loews common stock | Carolina Group stock | Net income (loss) | Diluted Income (Loss) Per Share: | Loews common stock: | Income (loss) from continuing operations | Discontinued operations, net | Cumulative effect of changes in | accounting principles, net | Net income (loss) | Carolina Group stock | Financial Position: | Investments | Total assets | Debt | Shareholders’ equity | Cash dividends per share: | Loews common stock | Carolina Group stock | Book value per share of Loews common | stock | Shares outstanding: | Loews common stock | Carolina Group stock |


| Cash $69.3 | Current assets | Property, plant and equipment | Goodwill | Intangible asset | Current liabilities | Long-term liabilities | Net assets acquired | Noncontrolling interests |


| For the Year Ended March 31, | 2016 | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by financing activities | Effect of exchange rate changes on cash | Net increase in cash and cash equivalents |


| (Unaudited) For the Year Ended December 31, | (Dollar amounts in millions, except per share data) | Total revenue | Operating income | Net income attributable to BlackRock, Inc. | Earnings per share attributable to BlackRock, Inc. common stockholders | Basic | Diluted |


| In millions EstimatedFair Value $536 8 109 14 26 AverageRemainingUseful Life (at acquisitiondate) 12-17 years 5-10 years Indefinite 4-7 years 2 years | Asset Class: | Total | In millions, except per share amounts | Net sales | Earnings (loss) from continuing operations (a) | Net earnings (loss) (a) | Diluted earnings (loss) from continuing operations per share (a) | Diluted net earnings (loss) per share (a) |


| For the Year Ended December 31, | 2017 | Balance, beginning of period | Provision for credit losses | Accounts written off, net of recoveries | Balance, end of period |


Table of Contents due to the low interest rate environment, appreciation in home values, an increasing percentage of the population purchasing homes and mortgage industry consolidation.
We have also experienced growth in our extended service contract and international businesses due to the acquisition of new clients as well as the expansion of our relationships with our existing clients.
The manufactured housing market has been more challenging because of a more restrictive lending environment with fewer lenders extending credit and increasingly strict underwriting standards being applied since the late 1990’s.
Finally, the domestic consumer credit insurance market has been contracting due to an adverse regulatory environment; however, this decline has been offset somewhat by growth in the debt protection market.
This adverse regulatory environment has included, in the last few years, many state regulatory interpretations that impose rigorous agent licensing requirements for employees of lenders who offer credit insurance products as well as federal legislation which dissuades, and various state laws that either dissuade or prohibit, financial institutions from financing single premium credit or other credit insurance on consumer or home loans secured by real estate.
In Assurant Solutions, we provide specialty property and consumer protection products and services.
In our specialty property solutions division, our strategy is to further develop our creditor-placed homeowners and manufactured housing homeowners insurance products and related services in order to maintain our leadership position or relationships with clients who are leaders and to gain market share in the mortgage and manufactured housing industries, as well as to develop our renters’ insurance product line.
Renters’ insurance generally provides coverage for the contents of a renter’s home or apartment and for liability.
In our consumer protection solutions division, we intend to continue to focus on being a low-cost provider of debt protection administration services, to leverage our administrative infrastructure with our large customer base clients and to manage the switch from credit insurance programs to debt protection programs in the United States.
In addition, our consumer protection solutions division offers a variety of warranties and extended service contracts on consumer electronics, personal computers, appliances and vehicles.


Reinsurance Receivables.
Reinsurance receivables for both paid and recoverable on unpaid losses totaled $1,348,226 thousand and $1,018,325 thousand at December 31, 2017 and 2016, respectively.
At December 31, 2017, $356,556 thousand, or 26.4%, was receivable from Mt.
Logan Re collateralized segregated accounts; $153,815 thousand, or 11.4%, was receivable from Resolution Group Reinsurance (Barbados) Limited (\
Resolution Group\
); $113,922 thousand, or 8.4%, was receivable from Zurich Vericherungs Gesellschaft (\
Zurich\
); $98,121 thousand, or 7.3%, was receivable from C. V.  Starr (Bermuda) (\
C. V.  Starr\
); and $82,234 thousand, or 6.1%, was receivable from Munich Reinsurance America, Inc.  (\
Munich Re\
).
The receivables from Resolution Group and C. V.  Starr are fully collateralized by individual trust agreements.
No other retrocessionaire accounted for more than 5% of our receivables.


| 2019 | Expected term in years | Expected volatility | Risk-free interest rate | Dividend yield |


| (in millions) CME ClearingAvailable Assets | Designated corporate contributions for futures and options-1 | Guaranty fund contributions-2 | Assessment powers-3 | Minimum Total Assets Available for Default-4 |


The purchase price allocation above has been revised from that included in the Companys Form 10-Q for the period ended June 24, 2006, to decrease the net tangible asset acquired and increased the deferred income tax liability with a corresponding increase to goodwill for both.
The decrease to the net tangible assets primarily
Operating income for osteoporosis assessment increased primarily due to increased revenues and, to a much lesser extent, a reduction in operating expenses.
Our gross margin in this business segment was 44% in fiscal 2005 compared to 43% in fiscal 2004.
The increase in osteoporosis assessment gross margins was primarily attributable to the increase in revenues and related improved absorption of manufacturing costs.
The reduction in operating expenses of $337,000 was primarily attributable to reduced commissions expense, primarily related to the shift to international sales.
Other.


| December 31, 2010 | 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 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, 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 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 |


| Assets Corporate RMBS Foreign government Mortgage loans Other [1] Totals | Fair Value as of January 1, 2016 | Realized gains (losses), net | Changes in unrealized gains (losses), net | Purchases | Settlements | Sales | Transfers into Level 3 | Transfers out of Level 3 | Fair Value as of December 31, 2016 |


| Years ended December 31, | 2009 | Balance at beginning of period | Noncontrolling interest balance related to redeemable noncontrolling interests | Changes in redemption value of redeemable noncontrolling interests: | Redeemable noncontrolling interests related to current year transactions | Redemptions | Redemption value adjustments1 | Balance at end of period |


| December 31 | 2007 | (In thousands) | Loans | Commercial, financial, agricultural, etc. | Real estate: | Residential | Commercial | Construction | Consumer | Total loans | Leases | Commercial | Consumer | Total leases | Total loans and leases |


We had provided a valuation allowance related to the benefits of certain state capital loss carryforwards and state net operating losses that we believed were unlikely to be realized.
The valuation allowance decreased by $2.5 million during the twelve months ended July 31, 2008 as a result of the elimination of the deferred tax asset in connection with the sale of certain outsourced payroll assets.
See Note 7.
The valuation allowance decreased by $1.9 million during the twelve months ended July 31, 2007 due to utilization of $1.0 million and expired losses of $0.9 million.
The components of total net deferred tax assets, net of valuation allowance, as shown on our balance sheet were as follows at the dates indicated:


Note 29  Offbalance sheet lending-related financial instruments, guarantees, and other commitments JPMorgan Chase provides lending-related financial instruments (e. g. , commitments and guarantees) to meet the financing needs of its customers.
The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the counterparty draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the counterparty subsequently fail to perform according to the terms of the contract.
Most of these commitments and guarantees are refinanced, extended, cancelled, or expire without being drawn or a default occurring.
As a result, the total contractual amount of these instruments is not, in the Firms view, representative of its actual future credit exposure or funding requirements.
To provide for probable credit losses inherent in wholesale and certain consumer lending-commitments, an allowance for credit losses on lending-related commitments is maintained.
See Note 15 for further information regarding the allowance for credit losses on lending-related commitments.
The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at December 31, 2016 and 2015.
The amounts in the table below for credit card and home equity lending-related commitments represent the total available credit for these products.
The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time.
The Firm can reduce or cancel credit card lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice.
In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due.
The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.


| Years ended December 31, 2011 2010 2009 | Revenue | Operating income | Operating margin |


| Year Ended December 31, | 2015 | Beginning balance, unrecognized tax benefits | Gross increases—tax positions in prior period | Gross decreases—tax positions in prior period | Gross increases—current-period tax positions | Decreases relating to settlements | Reductions as a result of lapse of statute of limitations | Foreign exchange movement | Ending balance, unrecognized tax benefits |


| % of Net Sales | 2010 - 2012 | $0 to $400 million | $400 million to $600 million | $600 million to $800 million | $800 million to $1.0 billion | In excess of $1.0 billion |


beginning on page 73, address in more detail the specific procedures, measures and analyses of the major categories of risk that we manage.
Strategic Risk Management The Board provides oversight for strategic risk through the CEO and the Finance Committee.
We use an integrated business planning process to help manage strategic risk.
A key component of the planning process aligns strategies, goals, tactics and resources.
The process begins with an assessment that creates a plan for the Corporation, setting the corporate strategic direction.
The planning process then cascades through the business units, creating business unit plans that are aligned with the Corporations direction.
Tactics and metrics are monitored to ensure adherence to the plans.
As part of this monitoring, business units perform a quarterly self-assessment further described in the Operational Risk Management section beginning on page 73.
This assessment looks at changing market and business conditions, and the overall risk in meeting objectives.
Corporate Audit in turn monitors, and independently reviews and evaluates, the plans and self-assessments.
One of the key tools for managing strategic risk is capital allocation.
Through allocating capital, we effectively manage each business segments ability to take on risk.
Review and approval of business plans incorporates approval of capital allocation, and economic capital usage is monitored through financial and risk reporting.


| (in millions) Phosphates Potash Total | Balance as of May 31, 2013 | Foreign currency translation | Reallocation of goodwill to assets held for sale | Balance at December 31, 2013 | Foreign currency translation | Goodwill acquired in ADM acquisition | Reallocation of goodwill to assets held for sale | Balance as of December 31, 2014 | Year ended December 31 | Dollars in millions | Noninterest income | Asset management | Consumer services | Corporate services | Residential mortgage | Service charges on deposits | Other | Total noninterest income | Year Ended December 31, | 2013 | (in thousands) | Research and development | Research and development as a percentage of revenue | Year Ended December 31, | 2013 | (in thousands) | Sales and marketing | Sales and marketing as a percentage of revenue |


Subsidiary Capital Requirements Many of our subsidiaries, including GS Bank USA and our broker-dealer subsidiaries, are subject to separate regulation and capital requirements of the jurisdictions in which they operate.
GS Bank USA.
GS Bank USA is subject to regulatory capital requirements that are calculated in substantially the same manner as those applicable to BHCs and calculates its capital ratios in accordance with the risk-based capital and leverage requirements applicable to state member banks, which are based on the Capital Framework.
See Note 20 to the consolidated financial statements for further information about the Capital Framework as it relates to GS Bank USA, including GS Bank USAs capital ratios and required minimum ratios.


BUSINESS SEGMENTS REVIEW In the first quarter of 2009, we made changes to our business organization structure and management reporting in conjunction with the acquisition of National City.
Business segment results for 2008 have been reclassified to reflect current methodologies and current business and management structure and to present prior periods on the same basis.
As a result of its pending sale, GIS is no longer a reportable business segment.
Results for 2009 for all of our business segments except BlackRock include revenues and expenses associated with businesses acquired with National City.
Business segment results, including inter-segment revenues, and a description of each business are included in Note 27 Segment Reporting included in the Notes To Consolidated Financial Statements of this Report.
Certain revenue and expense amounts included in this Item 7 differ from the amounts shown in Note 27 primarily due to the presentation in this Item 7 of business net interest revenue on a taxableequivalent basis.
Results of individual businesses are presented based on our management accounting practices and management structure.
There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company.
We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.
We typically update key cost allocation components annually.
Certain prior period amounts have been reclassified to reflect current methodologies and our current business and management structure.
Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis.
We have aggregated the business results for certain similar operating segments for financial reporting purposes.
Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product maturities, duration and other factors.
Capital is intended to cover unexpected losses and is assigned to the banking and servicing businesses using our risk-based economic capital model.
We have assigned capital equal to 6% of funds to Retail Banking to approximate market comparables for this business.
We have allocated the allowances for loan and lease losses and unfunded loan commitments and letters of credit based on our assessment of risk inherent in the business segment loan portfolios.
Our allocation of the costs incurred by operations and other shared support areas not directly aligned with the businesses is primarily based on the use of services.
Total business segment financial results differ from consolidated results from continuing operations.
The impact of these differences is reflected in the Other category.
Other for purposes of this Business Segments Review and the Business Segment Highlights in the Executive Summary includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as gains or losses related to BlackRock transactions including LTIP share distributions and obligations, earnings and gains related to Hilliard Lyons for the first quarter of 2008, integration costs, asset and liability management activities including net securities gains or losses and certain trading activities, exited businesses, equity management activities, tax credit investments, alternative investments, intercompany eliminations, most corporate overhead, and differences between business segment performance reporting and financial statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests.
Period-end Employees


Derivatives qualifying as guarantees In addition to the contracts described above, the Firm transacts certain derivative contracts that meet the characteristics of a guarantee under U. S.  GAAP.
These contracts include written put options that require the Firm to purchase assets upon exercise by the option holder at a specified price by a specified date in the future.
The Firm may enter into written put option contracts in order to meet client needs, or for trading purposes.
The terms of written put options are typically five years or less.
Derivative guarantees also include contracts such as stable value derivatives that require the Firm to make a payment of the difference between the market value and the book value of a counterpartys reference portfolio of assets in the event that market value is less than book value and certain other conditions have been met.
Stable value derivatives, commonly referred to as stable value wraps, are transacted in order to allow investors to realize investment returns with less volatility than an unprotected portfolio and are typically longer-term or may have no stated maturity, but allow the Firm to terminate the contract under certain conditions.
Derivative guarantees are recorded on the Consolidated Balance Sheets at fair value in trading assets and trading liabilities.
The total notional amount of the derivatives that the Firm deems to be guarantees was $87.8 billion and $98.1 billion at December 31, 2010 and 2009, respectively.
The notional amount generally represents the Firms maximum exposure to derivatives qualifying as guarantees.
However, exposure to certain stable value derivatives is contractually limited to a substantially lower percentage of the notional amount; the notional amount on these stable value contracts was $25.9 billion and $24.9 billion and the maximum exposure to loss was $2.7 billion and $2.5 billion, at December 31, 2010 and 2009, respectively.
The fair values of the contracts reflects the probability of whether the Firm will be required to perform under the contract.
The fair value related to derivative guarantees were derivative payables of $390 million and $974 million and derivative receivables of $96 million and $78 million at


Year ended September 30, 2009 Compared with the Year ended September 30, 2008 - Proprietary Capital Proprietary Capital results are driven by the valuations within Raymond James Capital Partners, L. P. , the EIF Funds, the valuations of our direct merchant banking investments and our investments in third-party private equity funds.
During fiscal 2009, our direct merchant banking investments and Raymond James Capital Partners L. P.  portfolio increased in value by $2.4 million and $12.1 million, respectively, while the RJF private equity investment and EIF Funds portfolio decreased by $2.8 million.
Since we do not own 100% of all of the investments held in this segment, $8.1 million of the net income is attributable to other investors.


| 2002 2001 | Credit Facility | Uncommitted credit facilities | Total debt |


| Payments Due By Period(a) | ($ in millions) | Long-term debt | Capital lease obligations | Interest payments on long-term debt(b) | Operating leases | Purchase obligations(c) | Total payments on contractual obligations |


CC&V, USA.
Gold production decreased 20% primarily due to lower ore grades mined and lower leach tons placed at Valley Leach Fill 2.
Costs applicable to sales per ounce increased 17% primarily due to lower ounces sold.
Depreciation and amortization per ounce decreased 15% primarily due to lower amortization rates.
All-in sustaining costs per ounce increased 16% primarily due to higher costs applicable to sales per ounce.


Management’s discussion and analysis 164 JPMorgan Chase & Co. /2013 Annual Report Firm) is required to hold more than the additional 2.5% of Tier 1 common.
In addition, Basel III establishes a 6.5% Tier I common equity standard for the definition of “well capitalized” under the Prompt Corrective Action (“PCA”) requirements of the FDIC Improvement Act (“FDICIA”).
The Tier I common equity standard is effective from the first quarter of 2015.
The following chart presents the Basel III minimum risk-based capital ratios during the transitional periods and on a fully phased-in basis.
The chart also includes management’s target for the Firm’s Tier 1 common ratio.
It is the Firm’s current expectation that its Basel III Tier 1 common ratio will exceed the regulatory minimums, both during the transition period and upon full implementation in 2019 and thereafter.
The Firm estimates that its Tier 1 common ratio under the Basel III Advanced Approach on a fully phased-in basis would be 9.5% as of December 31, 2013, achieving management’s previously stated objectives.
The Tier 1 common ratio as calculated under the Basel III Standardized Approach is estimated at 9.4% as of December 31, 2013.
The Tier 1 common ratio under both Basel I and Basel III are non-GAAP financial measures.
However, such measures are used by bank regulators, investors and analysts to assess the Firm’s capital position and to compare the Firm’s capital to that of other financial services companies.


| 2012 2011 2010 | Rent expense | Less: sublease income | Net rent expense |


| For the years ended December 31, 2008, 2007, and 2006(in millions of U.S. dollars) Direct Amount Ceded To Other Companies Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net | 2008 | 2007 | 2006 |


| December 31, | Company/Index | O’Reilly Automotive, Inc. | S&P 500 Retail Index | S&P 500 |


| Developed Undeveloped Developed andUndeveloped | (Thousands of acres) | United States | Europe | Africa | Other International | WORLDWIDE | (Thousands of barrels per day) | Net bitumen production(b) | Net synthetic crude sales |


| Owned Leased | United States | Canada | Europe | Rest of World |


Revenues in 2007 grew by $4,857 million, primarily due to the growth at Commercial Airplanes.
Commercial Airplanes revenues increased by $4,921 million, primarily due to higher new airplane deliveries and increased commercial aviation support activities.
IDS revenues decreased by $359 million, primarily due to lower revenues in N&SS resulting from the formation of the United Launch Alliance (ULA) joint venture in 2006 and lower revenues in BMA, offset by growth in GS&S.
BCC revenues decreased by $210 million primarily due to a decrease in the customer financing portfolio.
Unallocated items and eliminations changed by $524 million primarily due to fewer Commercial Airplanes intercompany deliveries when compared with 2006.


| 2009 2008 | (In Millions) | less than 1 year | 1 year - 5 years | 5 years - 10 years | 10 years - 15 years | 15 years - 20 years | 20 years+ | Total |


| % of Income Before Income Taxes | 2010 | Federal statutory rate | State taxes, net of federal tax benefit | Change in valuation allowance | Impact of foreign earnings, net(b) | Effect of net income attributable to noncontrolling interests | Loss on investment in foreign operations | Effect of completing domestic audits | Depletion | Revaluation of unrecognized tax benefits/reserve requirements | Manufacturer tax deduction | Other items, net | Effective income tax rate |


‰ Refined Coal Investment Tax Credits — Our refined coal facility investment and the resulting credits reduced our provision for income taxes by $17 million for the year ended December 31, 2011.
Refer to Note 9 to the Consolidated Financial Statements for more information related to our refined coal investment.
Our acquisition of Oakleaf did not materially impact our provision for income taxes or the effective income tax rate for the period ended December 31, 2011.
We did receive, as part of the acquisition, income tax attributes (primarily federal and state net operating losses).
While these tax attributes, when realized, will not affect our overall provision for income taxes, they will have a favorable impact on our cash taxes, although we do not anticipate the impact to be material to our overall cash flow from operations.
We expect our 2012 recurring effective tax rate will be approximately 35.5% based on expected income levels, projected federal tax credits and other permanent items.
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act, signed into law on December 17, 2010, included an extension of the bonus depreciation allowance through the end of 2012 and increased the amount of qualifying capital expenditures that can be depreciated immediately from 50% to 100%.
The 100% depreciation deduction applies to qualifying property placed in service from September 8, 2010 through December 31, 2011.
The acceleration of deductions on 2011 capital expenditures resulting from the bonus depreciation provision had no impact on our 2011 effective tax rate.
However, the ability to accelerate depreciation deductions decreased our 2011 cash taxes by approximately $190 million.
Taking the accelerated tax depreciation will result in increased cash taxes in future periods when the deductions for these capital expenditures would have otherwise been taken.
Noncontrolling Interests Net income attributable to noncontrolling interests was $48 million in 2011, $49 million in 2010 and $66 million in 2009.
These amounts are principally related to third parties’ equity interests in two limited liability companies that own three waste-to-energy facilities operated by our Wheelabrator Group.
The comparison of these amounts for the reported periods has been affected by (i) our January 2010 acquisition of a controlling financial interest in a portable self-storage business and (ii) the deconsolidation of certain final capping, closure, post-closure and environmental remediation trusts as a result of our implementation of authoritative accounting guidance, effective January 1, 2010, associated with variable interest entities.
Refer to Note 20 to the Consolidated Financial Statements for information related to the consolidation of these variable interest entities.
Landfill and Environmental Remediation Discussion and Analysis We owned or operated 266 solid waste and five secure hazardous waste landfills at December 31, 2011 and 2010.
At December 31, 2011 and 2010, the expected remaining capacity, in cubic yards and tonnage of waste that can be accepted at our owned or operated landfills, is shown below (in millions):


The various agreements entered into in connection with these transactions provide that International Paper has, and intends to effect, a legal right to offset its obligation under these debt instruments with its investments in the Entities.
Accordingly, for financial reporting purposes, International Paper has offset approximately $5.2 billion of Class B interests in the Entities against $5.3 billion of International Paper debt obligations held by these Entities at December 31, 2014 and 2013.
Despite the offset treatment, these remain debt obligations of International Paper.
Remaining borrowings of $50 million and $67 million at December 31, 2014 and 2013, respectively, are included in floating rate notes due 2014  2019 in the summary of long-term debt in Note 13.
Additional debt related to the above transaction of $107 million and $79 million is included in short-term notes in the summary of long-term debt in Note 13 at December 31, 2014 and 2013.
The use of the above entities facilitated the monetization of the credit enhanced Timber Notes in a cost effective manner by increasing the borrowing capacity and lowering the interest rate, while providing for the offset accounting treatment described above.
Additionally, the monetization structure preserved the tax deferral that resulted from the 2006 forestlands sales.
The Company recognized a $1.4 billion deferred tax liability in connection with the 2006 forestlands sale, which will be settled with the maturity of the Timber Notes in the third quarter of 2016 (unless extended).
During 2011 and 2012, the credit ratings for two letter of credit banks that support $1.5 billion of Timber Notes were downgraded below the specified threshold.
These letters of credit were successfully replaced by other qualifying institutions.
Fees of $10 million were incurred during 2012 in connection with these replacements.
During 2012, an additional letter of credit bank that supports $707 million of Timber Notes was downgraded below the specified threshold.
In December 2012, the Company and the third-party managing member agreed to a continuing replacement waiver for these letters of credit, terminable upon 30 days notice.


Industrial Participation Agreements We have entered into various industrial participation agreements with certain customers outside of the U. S.  to facilitate economic flow back and/or technology or skills transfer to their businesses or government agencies as the result of their procurement of goods and/or services from us.
These commitments may be satisfied by our local operations there, placement of direct work or vendor orders for supplies, opportunities to bid on supply contracts, transfer of technology or other forms of assistance.
However, in certain cases, our commitments may be satisfied through other parties (such as our vendors) who purchase supplies from our non-U.
S.  customers.
In certain cases, penalties could be imposed if we do not meet our industrial participation commitments.
During 2017, we incurred no such penalties.
As of December 31, 2017, we have outstanding industrial participation agreements totaling $17.9 billion that extend through 2030.
Purchase order commitments associated with industrial participation agreements are included in purchase obligations in the table above.
To be eligible for such a purchase order commitment from us, a non-U.
S.  supplier must have sufficient capability to meet our requirements and must be competitive in cost, quality and schedule.
Commercial Commitments The following table summarizes our commercial commitments outstanding as of December 31, 2017.


| Year Ended December 31 2010 2011 2012 | Nuclear-powered submarines | Surface combatants | Auxiliary and commercial ships | Repair and other services | Total Marine Systems |


| 52-weeks ended December 27, 2008 52-weeks ended December 29, 2007 Year over Year | Net Sales | Outdoor/Fitness | Marine | Automotive/Mobile | Aviation | Total |


| (in millions, except per share data) 2014 2013 2012 2011 2010 5-Year CAGR-4 | Total revenue | Operating income | Operating margin | Nonoperating income (expense)(1) | Net income attributable to BlackRock, Inc. | Diluted earnings per common share | (in millions, except per share data) | As adjusted-2: | Operating income | Operating margin-2 | Nonoperating income (expense)(1) | Net income attributable to BlackRock, Inc.-3 | Diluted earnings per common share-3 |


| High Low Dividends | 2010 | First quarter | Second quarter | Third quarter | Fourth quarter | 2009 | First quarter | Second quarter | Third quarter | Fourth quarter | Period | January 1, 2010 — January 31, 2010 | February 1, 2010 — February 28, 2010 | March 1, 2010 — March 31, 2010 | April 1, 2010 — April 30, 2010 | May 1, 2010 — May 31, 2010 | June 1, 2010 — June 30, 2010 | July 1, 2010 — July 31, 2010 | August 1, 2010 — August 31, 2010 | September 1, 2010 — September 30, 2010 | October 1, 2010 — October 31, 2010 | November 1, 2010 — November 30, 2010 | December 1, 2010 — December 31, 2010 | Total |


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) periods, employees purchased 53,210, 50,119 and 85,750 shares, respectively, at weighted average prices per share of $24.98, $15.32 and $10.64, respectively.
The fair value of the ESPP offerings is estimated on the offering period commencement date using a Black-Scholes pricing model with the expense recognized over the expected life, which is the six month offering period over which employees accumulate payroll deductions to purchase the Company’s Class A common stock.
The fair value for the ESPP shares purchased during the June 2006, December 2005, June 2005 and December 2004 offering periods was $7.29, $6.37, $4.13 and $6.12, respectively.
At December 31, 2006, 3,944,288 shares remain reserved for future issuance under the plan.
Key assumptions used to apply this pricing model are as follows:


DUKE ENERGY CORPORATION· DUKE ENERGY CAROLINAS, LLC· PROGRESS ENERGY INC. · DUKE ENERGY PROGRESS, LLC· DUKE ENERGY FLORIDA, LLC· DUKE ENERGY OHIO, INC. · DUKE ENERGY INDIANA, LLC· PIEDMONT NATURAL GAS COMPANY, INC.
Combined Notes to Consolidated Financial Statements – (Continued) 25.
QUARTERLY FINANCIAL DATA (UNAUDITED) DUKE ENERGY Quarterly EPS amounts may not sum to the full-year total due to changes in the weighted average number of common shares outstanding and rounding.


| Twelve Months Ended December 31, Change | 2018 vs. 2017 | Operating Revenue | (In millions) | U.S. Information Solutions | International | Workforce Solutions | Global Consumer Solutions | Consolidated operating revenue |


| Payments Due by Period | (In millions) | Contractual Obligations | Restricted cash | Short-term notes payable | Long-term debt | Operating leases | Other obligations | Total contractual cash obligations |


| 2004 2003 2002 | Cash flows from operating activities before securities trading (a) | Items included in operating-related cash flow | Capital expenditures | Net transactions between Automotive and Financial Services sectors (b) | Other, primarily exclusion of cash flow from short-term VEBA contribution/(draw-down) | Operating-related cash flows |


Total revenue for the year ended December 31, 2008 increased $219 million, or 5%, to $5,064 million, compared with $4,845 million for the year ended December 31, 2007.
The $219 million increase was primarily the result of a $208 million increase in BlackRock Solutions and advisory revenue and a $49 million increase in total investment advisory and administration fees, partially offset by a $54 million decrease in other revenue.
Investment Advisory and Administration Fees The increase in investment advisory and administration fees of $49 million, or 1%, was the result of an increase in investment advisory and administration base fees of $222 million, or 6%, to $4,232 million for the year ended December 31, 2008, compared with $4,010 million for the year ended December 31, 2007, partially offset by a decrease of $173 million in investment advisory performance fees.
The increase in investment advisory and administration base fees of $222 million for the year ended December 31, 2008, compared with the year ended December 31, 2007, consisted of increases in base fees of $188 million in cash management products and $160 million in alternative investment products, partially offset by decreases of $117 million in equity and balanced products and $9 million in fixed income products.
Investment advisory and administration base fees increased for the year ended December 31, 2008 primarily as a result of increased average AUM in 2008 compared to 2007 for cash management products due to net subscriptions and alternative investment products due to the full year impact of the Quellos Transaction, offset by lower fees in equity and balanced products due to the impact of market depreciation on AUM.
Investment advisory performance fees decreased by $173 million, or 49%, to $177 million for the year ended December 31, 2008, as compared to $350 million for the year ended December 31, 2007 primarily as a result of lower investment advisory performance fees earned on other alternative investment products, including real estate funds, fixed income hedge funds and international equity products.
BlackRock Solutions and Advisory BlackRock Solutions and advisory revenue of $406 million for the year ended December 31, 2008 increased $208 million, or 105%, compared with the year ended December 31, 2007.
The increase in BlackRock Solutions and advisory revenue was primarily the result of additional advisory assignments and Aladdin?
assignments during the period.
A portion of the revenue earned on advisory assignments was comprised of one-time advisory and portfolio structuring fees and ongoing fees based on AUM of the respective portfolio assignments.
Distribution Fees Distribution fees increased by $16 million to $139 million for the year ended December 31, 2008, as compared to $123 million for the year ended December 31, 2007.
The increase in distribution fees is primarily due to the fullyear impact of the acquisition of distribution financing arrangements from PNC in second quarter 2007, which resulted in the Company receiving distribution fees from such arrangements, as well as an increase in contingent deferred sales commissions as a result of redemptions in certain share classes of open-ended funds.
Other Revenue Other revenue of $110 million for the year ended December 31, 2008 decreased $54 million, or 32%, compared with the year ended December 31, 2007.
Other revenue represents property management fees of $31 million earned on real estate products (primarily related to reimbursement of salaries and benefits of certain Metric employees from certain real estate products), $25 million of net interest related to securities lending, $23 million of unit trust sales commissions and $31 million of other revenue, including fund accounting services.
The decrease in other revenue of $54 million for the year ended December 31, 2008, as compared to the year ended December 31, 2007, was primarily the result of a decrease in fees earned for fund accounting services of $16 million, a $14 million decline in other advisory service fees earned in 2007, a $12 million decline in unit trust sales commissions and a $7 million decline in property management fees primarily related to the termination in the fourth quarter of 2008 of certain Metric contracts with BlackRock real estate clients.
Certain Metric employees have been transferred to a third party, which will provide to real estate clients the property management services formerly provided by Metric.
At December 31, 2008, Metric had no remaining employees.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Management’s Discussion and Analysis The Risk Committee of the Board and the Risk Governance Committee (through delegated authority from the Firmwide Risk Committee) approve market risk limits and sub-limits at firmwide, business and product levels, consistent with our risk appetite statement.
In addition, Market Risk Management (through delegated authority from the Risk Governance Committee) sets market risk limits and sub-limits at certain product and desk levels.
The purpose of the firmwide limits is to assist senior management in controlling our overall risk profile.
Sub-limits are set below the approved level of risk limits.
Sub-limits set the desired maximum amount of exposure that may be managed by any particular business on a day-to-day basis without additional levels of senior management approval, effectively leaving day-to-day decisions to individual desk managers and traders.
Accordingly, sub-limits are a management tool designed to ensure appropriate escalation rather than to establish maximum risk tolerance.
Sub-limits also distribute risk among various businesses in a manner that is consistent with their level of activity and client demand, taking into account the relative performance of each area.
Our market risk limits are monitored daily by Market Risk Management, which is responsible for identifying and escalating, on a timely basis, instances where limits have been exceeded.
When a risk limit has been exceeded (e. g. , due to positional changes or changes in market conditions, such as increased volatilities or changes in correlations), it is escalated to senior managers in Market Risk Management and/or the appropriate risk committee.
Such instances are remediated by an inventory reduction and/or a temporary or permanent increase to the risk limit.
Model Review and Validation Our VaR and stress testing models are regularly reviewed by Market Risk Management and enhanced in order to incorporate changes in the composition of positions included in our market risk measures, as well as variations in market conditions.
Prior to implementing significant changes to our assumptions and/or models, Model Risk Management performs model validations.
Significant changes to our VaR and stress testing models are reviewed with our chief risk officer and chief financial officer, and approved by the Firmwide Risk Committee.
See “Model Risk Management” for further information about the review and validation of these models.
Systems We have made a significant investment in technology to monitor market risk including: ‰ An independent calculation of VaR and stress measures; ‰ Risk measures calculated at individual position levels; ‰ Attribution of risk measures to individual risk factors of each position; ‰ The ability to report many different views of the risk measures (e. g. , by desk, business, product type or entity); and ‰ The ability to produce ad hoc analyses in a timely manner.
Metrics We analyze VaR at the firmwide level and a variety of more detailed levels, including by risk category, business, and region.
The tables below present average daily VaR and period-end VaR, as well as the high and low VaR for the period.
Diversification effect in the tables below represents the difference between total VaR and the sum of the VaRs for the four risk categories.
This effect arises because the four market risk categories are not perfectly correlated.
The table below presents average daily VaR by risk category.


| Payments Due by Fiscal Year | In Millions | Long-term debt (a) | Accrued interest | Operating leases (b) | Capital leases | Purchase obligations (c) | Total contractual obligations | Other long-term obligations (d) | Total long-term obligations |


Equity At December 31, 2010, we had 4.0 million shares of 7.25% Series E cumulative redeemable preferred stock, 7.8 million shares of 7.10% Series F cumulative redeemable preferred stock and 370.9 million shares of common stock outstanding.
At December 31, 2010, equity totaled $8.1 billion and our equity securities had a market value of $14.2 billion.
As of December 31, 2010, there were a total of 4.2 million DownREIT units outstanding in five limited liability companies in which we are the managing member.
The DownREIT units are exchangeable for an amount of cash approximating the then-current market value of shares of our common stock or, at our option, shares of our common stock (subject to certain adjustments, such as stock splits and reclassifications).
Shelf Registration We have a prospectus on file with the SEC as part of a registration statement on Form S-3, using a shelf registration process that expires in September 2012.
Under this shelf process, we may sell from time to time any combination of the registered securities in one or more offerings.
The securities described in the prospectus include common stock, preferred stock and debt securities.
Each time we sell securities under the shelf registration, we will provide a prospectus supplement that will contain specific information about the terms of the securities being offered and of the offering.
We may offer and sell the securities pursuant to this prospectus from time to time in one or more of the following ways: through underwriters or dealers, through agents, directly to purchasers or through a combination of any of these methods of sales.
Proceeds from the sale of these securities may be used for general corporate purposes, which may include repayment of indebtedness, working capital and potential acquisitions.


| (in thousands) | Balance at October 31, 2010 | Additions | Other adjustments-1 | Balance at October 31, 2011 | Additions | Other adjustments-1 | Balance at October 31, 2012 |


| Sales by Destination 2009 Percent Change 2008 Percent Change 2007 | EAME-1 | North America | Greater Asia | Latin America | Total net sales, as reported |


| Interest Rate Swap NotionalValue $200,000 100,000 21,394 137,500 100,000 100,000 StrikeRate 1.131% 1.161% 12.000% 4.000% 1.928% 1.934% EffectiveDate July 2016 July 2016 January 2017 September 2017 December 2017 December 2017 ExpirationDate July 2023 July 2023 January 2019 September 2019 November 2020 November 2020 Balance Sheet Location Other Assets Other Assets Other Assets Other Assets Other Assets Other Assets FairValue $10,747 5,217 167 2 288 271 | $16,692 |


| Year ended December 31 - dollars in millions 2007 2006 2005 2004 2003 | Allowance for loan and lease losses at beginning of year | Charge-offs | Commercial | Commercial real estate | Consumer | Residential mortgage | Lease financing | Total charge-offs | Recoveries | Commercial (a) | Commercial real estate | Consumer | Residential mortgage | Lease financing | Total recoveries | Net charge-offs(a) | Provision for credit losses | Acquisitions | Net change in allowance for unfunded loan commitments and letters of credit | Allowance for loan and lease losses at end of year | Allowance as a percent of period-end | Loans | Nonperforming loans | As a percent of average loans | Net charge-offs (a) | Provision for credit losses | Allowance for loan and lease losses | Allowance as a multiple of net charge-offs (a) |


| During 2006 | Year ended Dec. 31, 2006 | (Millions of Dollars) | Commodity trading(a) |


During 2012, the Company closed on 10 acquisitions of various regulated water and wastewater systems for a total aggregate purchase price of $44,560.
Included in this total was the Companys May 1, 2012 acquisition of all of the capital stock of Aqua New York, Inc.  for a total cash purchase price of $36,688 plus assumed liabilities.
Assets acquired in the Aqua New York acquisition totaled $102,727, including $59,139 of plant, $27,400 of regulatory assets, and $12,181 of goodwill; liabilities assumed totaled $66,039, including long-term debt of $25,215, $11,885 of regulatory liabilities, $15,424 of deferred taxes, $1,708 of other liabilities, $1,060 of contributions in aid of construction and $9,710 of pension and postretirement welfare liabilities.
Assets acquired (primarily utility plant) in the other nine acquisitions during 2012 totaled $12,514; liabilities assumed totaled $4,642.
During 2011, the Company closed on nine acquisitions of regulated water and wastewater systems for an aggregate purchase price of $7,220.
The purchase price for each acquisition was allocated to the net tangible and intangible assets based upon their estimated fair values at the acquisition date.
Assets acquired totaled $12,919, of which $12,814 was utility plant.
Liabilities assumed totaled $4,945, including contributions in aid of construction of $3,847 .
The Company recorded gains on acquisitions during 2011 totaling $754.
Divestitures In January 2012, the Company completed the sale of its Arizona and New Mexico subsidiaries.
After postclose adjustments, net proceeds from the sale totaled $458,860, and the Company recorded a pretax loss on sale of $2,198.
In May 2012, the Company completed the sale of its Ohio subsidiary.
After post-close adjustments, net proceeds from the sale totaled $102,154, and the Company recorded a pretax loss on sale of $4,095.
In December 2011, the Company completed the sale of its Applied Water Management subsidiary, part of its Market-Based Operations segment.
Proceeds from the sale totaled $2,923.
The Company recorded a pretax loss on sale of $3,126 in 2011.
In 2012, the Company recorded an additional pretax loss of $114 for certain postclose adjustments .
In June 2011, the Company completed the sale of the assets of its Texas subsidiary for proceeds of $6,245.
In the first quarter of 2011, the Company recognized an after-tax impairment charge of $552 for parent company goodwill allocated to the Texas subsidiary.
Operating results and the financial position of the five subsidiaries named above are included in the accompanying financial statements as discontinued operations.
A summary of discontinued operations presented in the Consolidated Statements of Operations and Comprehensive Income follows:


premiums paid by insureds.
In 2010, pricing decreased in both our retail and reinsurance brokerage product lines and we expect similar pricing declines to continue into 2011.
Additionally, beginning in late 2008 and continuing throughout 2010, we faced difficult conditions as a result of unprecedented disruptions in the global economy, the repricing of credit risk and the deterioration of the financial markets.
Weak global economic conditions have reduced our customers’ demand for our retail brokerage and reinsurance brokerage products, which have had a negative impact on our operational results.
Risk Solutions generated approximately 75% of our consolidated total revenues in 2010.
Revenues are generated primarily through fees paid by clients, commissions and fees paid by insurance and reinsurance companies, and investment income on funds held on behalf of clients.
Our revenues vary from quarter to quarter throughout the year as a result of the timing of our clients’ policy renewals, the net effect of new and lost business, the timing of services provided to our clients, and the income we earn on investments, which is heavily influenced by short-term interest rates.
We operate in a highly competitive industry and compete with many retail insurance brokerage and agency firms, as well as with individual brokers, agents, and direct writers of insurance coverage.
Specifically, we address the highly specialized product development and risk management needs of commercial enterprises, professional groups, insurance companies, governments, health care providers, and non-profit groups, among others; provide affinity products for professional liability, life, disability income, and personal lines for individuals, associations, and businesses; provide products and services via GRIP Solutions; provide reinsurance services to insurance and reinsurance companies and other risk assumption entities by acting as brokers or intermediaries on all classes of reinsurance; provide capital management transaction and advisory products and services, including mergers and acquisitions and other financial advisory services, capital raising, contingent capital financing, insurance-linked securitizations and derivative applications; provide managing underwriting to independent agents and brokers as well as corporate clients; provide risk consulting, actuarial, loss prevention, and administrative services to businesses and consumers; and manage captive insurance companies.
In February 2009, we completed the sale of the U. S.  operations of Cananwill, our premium finance business.
In June and July of 2009, we entered into agreements with third parties with respect to our international premium finance businesses, whereby these third parties began originating, financing, and servicing premium finance loans generated by referrals from our brokerage operations.
In November 2008 we expanded our product offerings through the merger with Benfield, a leading independent reinsurance intermediary.
Benfield products were integrated with our existing reinsurance products in 2009.
Revenue Risk Solutions commissions, fees and other revenue was as follows (in millions):


| 2017 2016 2015 | Statutory U.S. rate | One time transition tax | State income taxes, net of federal benefit | Foreign operations | Domestic manufacturing deduction | R&D credit | Change in valuation allowance | Audit settlements and refunds | Excess stock benefits | Change in federal tax rate (deferred taxes) | Venezuela charges | Worthless stock deduction | Other, net | Effective income tax rate |


Legal Proceedings The Company is involved, from time to time, in litigation and other legal proceedings incidental to its business.
Management believes that the outcome of current litigation and legal proceedings will not have a material adverse effect upon the Companys results of operations, financial condition or cash flows.
However, managements assessment of the Companys current litigation and other legal proceedings could change in light of the discovery of facts with respect to legal actions or other proceedings pending against the Company, not presently known to the Company or determinations by judges, juries or other finders of fact which are not in accord with managements evaluation of the possible liability or outcome of such litigation or proceedings.
Reasonably possible losses in addition to the amounts accrued for litigation and other legal proceedings are not material to the Companys consolidated financial statements.


| December 31 – dollars in millions 2013 2012 2011 2010 2009 | Nonperforming loans | Commercial | Commercial real estate | Equipment lease financing | Total commercial lending | Consumer lending (a) | Home equity (b) (c) | Residential real estate (b) | Credit card (d) | Other consumer (b) | Total consumer lending (e) | Total nonperforming loans (f) | OREO and foreclosed assets | Other real estate owned (OREO) (g) | Foreclosed and other assets | Total OREO and foreclosed assets | Total nonperforming assets | Nonperforming loans to total loans | Nonperforming assets to total loans, OREO and foreclosed assets | Nonperforming assets to total assets | Interest on nonperforming loans | Computed on original terms | Recognized prior to nonperforming status | Past due loans | Accruing loans past due 90 days or more (h) | As a percentage of total loans | Past due loans held for sale | Accruing loans held for sale past due 90 days or more (i) | As a percentage of total loans held for sale |


| Cash $4,082 | Customer-related intangible assets | Acquired technology | Trade name | Other intangible assets | Other assets | Liabilities | Deferred income tax liabilities | Total identifiable net assets | Goodwill | Noncontrolling interest | Total purchase consideration |


| At December 31, | 2016 | Ending Balances by Type: | Originated loans | Commercial: | Commercial and industrial | Commercial real estate: | Construction | Commercial | Commercial real estate | Total commercial | Consumer: | Automobile | Home equity | Residential mortgage | RV and marine finance | Other consumer | Total consumer | Total originated loans and leases | Acquired loans -1 | Commercial: | Commercial and industrial | Commercial real estate: | Construction | Commercial | Commercial real estate | Total commercial | Consumer: | Automobile | Home equity |


| 2018 2017 2016 | Expected life (in years) | Volatility | Risk free interest rate |


| 2018 2017 2016 | Balance as of January 1 | Amounts charged to expense | Amounts written off | Recoveries of amounts written off | Balance as of December 31 | December 31, 2015 | (Amounts in thousands) | Financial assets: | HTM investment securities | Loans and leases (including loans held for sale), net of allowance | Financial liabilities: | Time deposits | Foreign deposits | Long-term debt (less fair value hedges) | (Amounts in millions) | Salaries and employee benefits | Occupancy, net | Furniture, equipment and software | Other real estate expense | Credit-related expense | Provision for unfunded lending commitments | Professional and legal services | Advertising | FDIC premiums | Amortization of core deposit and other intangibles | Debt extinguishment cost | Other | Total |


| Beginning of year 552 | Revisions of previous estimates | Improved recovery | Purchases of reserves in place | Extensions, discoveries, and other additions | Dispositions | Transfers to proved developed | End of year |


| (Dollar amounts in millions) Quoted Prices  inActive  Marketsfor  Identical Assets  (Level 1) Significant Other Observable Inputs (Level 2) December 31, 2010 | Cash and cash equivalents | Equity securities | Fixed income securities | Fair value of plan assets |


| As of December | $ in millions | Balance, beginning of year | Increases based on tax positions related to the current year | Increases based on tax positions related to prior years | Decreases based on tax positions related to prior years | Decreases related to settlements | Exchange rate fluctuations | Balance, end of year | Related deferred income tax asset | Net unrecognized tax benefit |


| Guarantee Description Issue Date Expiration Date Maximum   Obligation FIN 45   Carrying   Amount | In Millions | Indemnifications from asset sales and other agreements | Surety bonds and other indemnifications | Guarantees and put options |


| Amount of Commitment Expiration per Period | Other Commercial CommitmentsMillions | Credit facilities [a] | Receivables securitization facility [b] | Guarantees [c] | Standby letters of credit [d] | Total commercialcommitments |


We sold $2.2 billion of commercial mortgages held for sale carried at the lower of cost or market in 2012.
The comparable amount in 2011 was $2.4 billion.
The increase in these loans to $620 million at December 31, 2012, compared to $451 million at December 31, 2011, was due to an increase in loans awaiting sale to government agencies.
We recognized total net gains of $41 million in 2012 and $48 million in 2011 on the valuation and sale of commercial mortgage loans held for sale, net of hedges.
Residential mortgage loan origination volume was $15.2 billion in 2012 compared with $11.4 billion in 2011.
Substantially all such loans were originated under agency or Federal Housing Administration (FHA) standards.
We sold $13.8 billion of loans and recognized related gains of $747 million during 2012.
The comparable amounts for 2011 were $11.9 billion and $384 million, respectively.
Interest income on loans held for sale was $168 million in 2012 and $193 million in 2011.
These amounts are included in Other interest income on our Consolidated Income Statement.
Additional information regarding our loan sale and servicing activities is included in Note 3 Loan Sale and Servicing Activities and Variable Interest Entities in our Notes To Consolidated Financial Statements included in Item 8 of this Report.
GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill and other intangible assets totaled $10.9 billion at December 31, 2012 and $10.1 billion at December 31, 2011.
During 2012, we recorded goodwill of $950 million and other intangible assets of $180 million associated with the RBC Bank (USA) acquisition.
In the fourth quarter of 2012, we sold certain deposits and assets of the Smartstreet business unit, which was acquired by PNC as part of the RBC Bank (USA) acquisition, which resulted in a reduction of goodwill and core deposit intangibles by approximately $46 million and $13 million, respectively.
Also in the fourth quarter of 2012, we recorded a $45 million noncash charge for goodwill impairment related to PNC’s Residential Mortgage Banking business segment.
See Note 2 Acquisition and Divestiture Activity and Note 10 Goodwill and Other Intangible Assets in the Notes To Consolidated Financial Statements included in Item 8 of this Report.
FUNDING AND CAPITAL SOURCES Table 16: Details Of Funding Sources


LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2006, our principal sources of liquidity included cash, cash equivalents, the sale of receivables, and our revolving credit facilities, as well as the availability of commercial paper and other sources of financing through the capital markets.
We had $2 billion of committed credit facilities available, of which there were no borrowings outstanding as of December 31, 2006, and we did not make any short-term borrowings under these facilities during the year.
The value of the outstanding undivided interest held by investors under the sale of receivables program was $600 million as of December 31, 2006.
The sale of receivables program is subject to certain requirements, including the maintenance of an investment grade bond rating.
If our bond rating were to deteriorate, it could have an adverse impact on our liquidity.
Access to commercial paper is dependent on market conditions.
Deterioration of our operating results or financial condition due to internal or external factors could negatively impact our ability to utilize commercial paper as a source of liquidity.
Liquidity through the capital markets is also dependent on our financial stability.
At both December 31, 2006 and 2005, we had a working capital deficit of approximately $1.1 billion.
A working capital deficit is common in our industry and does not indicate a lack of liquidity.
We maintain adequate resources to meet our daily cash requirements, and we have sufficient financial capacity to satisfy our current liabilities.
Financial Condition


Gas Supply CECONY and O&R have combined their gas requirements, and contracts to meet those requirements, into a single portfolio.
The combined portfolio is administered by, and related management services are provided by, CECONY (for itself and as agent for O&R) and costs are allocated between the Utilities in accordance with provisions approved by the NYSPSC.
See Note S to the financial statements in Item 8.
Charges from suppliers for the firm purchase of gas, which are based on formulas or indexes or are subject to negotiation, are generally designed to approximate market prices.
The Utilities have contracts with interstate pipeline companies for the purchase of firm transportation from upstream points where gas has been purchased to the Utilities’ distribution systems, and for upstream storage services.
Charges under these transportation and storage contracts are approved by the FERC.
The Utilities are required to pay certain fixed charges under the supply, transportation and storage contracts whether or not the contracted capacity is actually used.
These fixed charges amounted to approximately $301 million in 2016, including $263 million for CECONY.
See “Contractual Obligations” below.
At December 31, 2016, the contracts were for various terms extending to 2020 for supply and 2038 for transportation and storage.
During 2016, CECONY entered into four new transportation and storage contracts.
In addition, the Utilities purchase gas on the spot market and contract for interruptible gas transportation.
See “Recoverable Energy Costs” in Note A and Note P to the financial statements in Item 8.


| Year ended December 31, 2010 | (Dollars in thousands) | Total gains on investment securities, net | Less: income attributable to noncontrolling interests, including carried interest | Non-GAAP net gains on investment securities, net of noncontrolling interests | Less: gains on sales of certain available-for-sale securities | Non-GAAP net gains on investment securities, net of noncontrolling interests and excluding gains on sales of certain available-for-salesecurities | Year ended December 31, 2009 | (Dollars in thousands) | Total (losses) gains on investment securities, net | Less: (losses) income attributable to noncontrolling interests, including carried interest | Non-GAAP net (losses) gains on investment securities, net of noncontrolling interests |


| December 31 2007 2006 | (In millions) | Reinsurance receivables related to insurance reserves: | Ceded claim and claim adjustment expense | Ceded future policy benefits | Ceded policyholders’ funds | Reinsurance receivables related to paid losses | Reinsurance receivables | Allowance for uncollectible reinsurance | Reinsurance receivables, net of allowance for uncollectiblereinsurance | Direct | (In millions) | Year Ended December 31, 2007 | Property and casualty | Accident and health | Life | Earned premiums | Year Ended December 31, 2006 | Property and casualty | Accident and health | Life | Earned premiums | Year Ended December 31, 2005 | Property and casualty | Accident and health | Life | Earned premiums |


| April 30, 2010 2009 2008 | U.S. OFFICES: | Company-owned offices | Company-owned shared locations-1 | Total company-owned offices | Franchise offices | Franchise shared locations-1 | Total franchise offices | 11,506 | INTERNATIONAL OFFICES: | Canada | Australia | 1,643 |


Our Company has a number of facilities that contain varying amounts of asbestos in certain locations within the facilities.
Our asbestos management program is compliant with current applicable regulations.
Current regulations require that we handle or dispose of this type of asbestos in a special manner if such facilities undergo major renovations or are demolished.
We believe we do not have sufficient information to estimate the


| Significant Unobservable Inputs (Level 3) (in millions) | Fair value, December 31, 2008 | Calls, at par | Recovery of unrealized losses due to issuer calls | Increase in fair value | Fair value, December 31, 2009 | Calls, at par | Recovery of unrealized losses due to issuer calls | Increase in fair value | Fair value, December 31, 2010 |


| Years ended December 31, 2017 2016 2015 | Share-based plans | Deferred compensation | Eliminations and other | Sub-total (included in core operating earnings*) | Pension | Postretirement | Pension and other postretirement benefit income/(expense)(excluded from core operating earnings*) | Total unallocated items, eliminations and other | (Millions of Dollars) | Balance Sheet Location | Con Edison | Fair value of derivative assets | Current | Non-current | Total fair value of derivative assets | Fair value of derivative liabilities | Current | Non-current | Total fair value of derivative liabilities | Net fair value derivative assets/(liabilities) | CECONY | Fair value of derivative assets | Current | Non-current | Total fair value of derivative assets | Fair value of derivative liabilities | Current | Non-current liabilities | Total fair value of derivative liabilities | Net fair value derivative assets/(liabilities) |


| Interest Rate Contracts Year of Termination Notional Amount of Underlying Debt Total Pre-Tax Deferred Gain/(Loss) 2006 Pre-Tax Income/(Expense) Recognized 2005 Pre-Tax Income/(Expense) Recognized | Dollars in Millions | Interest rate swap lock associated with 5.75% Notes due 2011-1 | Interest Rate Swap Lock associated with 4.75% Notes due 2006 | Swaps associated with 4.75% Notes due 2006-1 | Swaps associated with 5.75% Notes due 2011-1 | Swaps associated with 6.8% Notes due 2026 | Swaps associated with 5.75% Notes due 2011-1 | $-165 |


| (Millions) 2007 2006 2005 | Purchases of property, plant and equipment (PP&E) | Proceeds from sale of PP&E and other assets | Acquisitions, net of cash acquired | Proceeds from sale of businesses | Purchases and proceeds from sale or maturities of marketable securities and investments — net | Net cash used in investing activities |


Under contract accounting unbillable receivables on long-term contracts arise when the sales or revenues based on performance attainment, though appropriately recognized, cannot be billed yet under terms of the contract as of the balance sheet date.
Any adjustment for the credit quality of unbillable receivables, if required, would be recorded as a direct reduction of revenue.
Factors considered in assessing the collectability of unbillable receivables include, but are not limited to, a customer’s extended delinquency, requests for restructuring and filings for bankruptcy.
Unbillable receivables related to commercial customers expected to be collected after one year were $172 and $172 at December 31, 2017 and 2016.
Accounts receivable related to claims are items that we believe are earned, but are subject to uncertainty concerning their determination or ultimate realization.
Accounts receivable, other than those described above, expected to be collected after one year are not material.


The volume/weather variance is primarily due to a decrease of 97 GWh in weather-adjusted usage in the residential and commercial sectors and a decrease in sales volume in the unbilled sales period.
The transmission equalization variance is primarily due to the addition in 2011 of transmission investments that are subject to equalization.
Gross operating revenues and fuel and purchased power expenses Gross operating revenues increased primarily due to an increase of $57.5 million in gross wholesale revenues due to an increase in sales to affiliated customers, partially offset by a decrease of $26.9 million in power management rider revenue.
Fuel and purchased power expenses increased primarily due to an increase in deferred fuel expense as a result of higher fuel revenues due to higher fuel rates, partially offset by a decrease in the average market prices of natural gas and purchased power.
and $1.12 per Mcf (2007) from hedging activities.
The effect of hedging activities on the average realized natural gas price for 2009 was de minimis.
(3) Average crude oil sales prices reflect reductions of $5.57 per Bbl (2009), $7.59 per Bbl (2008), and $2.19 per Bbl (2007) from hedging activities.
Natural gas is under contract for $0.25 per MMBtu to a methanol plant, an LPG plant and an LNG plant.
Sales to these plants are based on a BTU equivalent and then converted to a dry gas equivalent volume.
The methanol and LPG plants are owned by affiliated entities accounted for under the equity method of accounting.
The volumes produced by the LPG plant are included in the crude oil information.
(4) Volumes represent sales of condensate and LPG from the LPG plant in Equatorial Guinea.
(5) We sold our Argentina assets in February 2008.
Revenues from sales of crude oil and natural gas have accounted for 90% or more of consolidated revenues for each of the last three fiscal years.
At December 31, 2009, our operated properties accounted for approximately 60% of our total production.
Being the operator of a property improves our ability to directly influence production levels and the timing of projects, while also enhancing our control over operating expenses and capital expenditures.
Productive Wells The number of productive crude oil and natural gas wells in which we held an interest at December 31, 2009 was as follows:


| Class A common stock 597,213,410 | Class B common stock | Class C common stock | Class P common stock | December 31, | 2009 | (in millions) | Fixed maturities, available for sale | Trading account assets supporting insurance liabilities | Commercial mortgage and other loans | Other long-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Separate account assets | Total assets of consolidated VIEs | Long-term debt | Other liabilities | Separate account liabilities | Total liabilities of consolidated VIEs | December 31, 2009 | Employee Stock Options | Weighted Average Remaining Contractual Term | (in years) | Outstanding | Vested and expected to vest | Exercisable | Restricted Stock Shares | Restricted at December 31, 2006 | Granted | Forfeited | Performance adjustment-2 | Released | Restricted at December 31, 2007 | Granted | Forfeited | Performance adjustment-2 | Released | Restricted at December 31, 2008 | Granted | Forfeited | Performance adjustment-2 | Released | Restricted at December 31, 2009 |


Other Off-Balance Sheet Commitments Operating Leases The Company leases various equipment and facilities, including retail space, under noncancelable operating lease arrangements.
The Company does not currently utilize any other off-balance sheet financing arrangements.
The major facility leases are typically for terms not exceeding 10 years and generally contain multi-year renewal options.
As of September 26, 2015, the Company had a total of 463 retail stores.
Leases for retail space are for terms ranging from five to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options.
As of September 26, 2015, the Companys total future minimum lease payments under noncancelable operating leases were $6.3 billion, of which $3.6 billion related to leases for retail space.
Rent expense under all operating leases, including both cancelable and noncancelable leases, was $794 million, $717 million and $645 million in 2015, 2014 and 2013, respectively.
Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 26, 2015, are as follows (in millions):


| Fiscal Year Ended September 30, | Statement of Operations Data: | (in millions, except per share data) | Operating revenues | Operating expenses | Operating income (loss) | Net income (loss) | Basic net income per share—class A common stock-2 | Diluted net income per share—class A common stock-2 |


| Change | (dollars in millions) | Revenues | Costs of revenue | as a percentage of revenues | Selling, general and administrative expenses | as a percentage of revenues | Segment profit | as a percentage of revenues |