| Jurisdiction Years | United States | Louisiana | Mississippi | Virginia |


| (Dollars in millions) December 31 | Curve Change | +100 bps Parallel shift | -100 bps Parallel shift | Flatteners | Short end | Long end | Steepeners | Short end | Long end |


Under Armour, Inc.  and Subsidiaries Notes to the Consolidated Financial Statements—(Continued) (amounts in thousands, except per share and share amounts) Prior to amending and restating the revolving credit facility in September 2005, the Company was party to a revolving credit facility that was to expire April 2007.
From January 2004 through September 2005, this agreement was periodically amended to increase the available borrowings based on eligible inventory and accounts receivable not to exceed $60,000.
Interest rates and covenants under the superseded revolving credit facility were similar to the interest rates and covenants described above.
The weighted average interest rate on the revolving credit facilities for the years ended December 31, 2005 and 2004 was 5.5% and 4.0%, respectively.
During the year ended December 31, 2006, no balance was outstanding.
In March 2005, the Company entered into a loan and security agreement to finance the acquisition of up to $17,000 of qualifying capital investments.
This agreement is collateralized by a first lien on these assets and is otherwise subordinate to the revolving credit facility.
Through December 31, 2006, the Company has financed $7,915 of furniture and fixtures under this agreement.
The weighted average interest rate on borrowings was 6.5% for the year ended December 31, 2006.
At December 31, 2006, the outstanding principal balance was $4,541.
Principal payments due for the years ended December 31, 2007, 2008, 2009, 2010 and 2011 are $2,648, $1,515, $337, $41, and $0, respectively.
In December 2003, the Company entered into a master loan and security agreement that was subordinate to the revolving credit facilities.
Under this agreement the Company borrowed $1,250 for the purchase of qualifying furniture and fixtures.
The interest rate was 6.97% annually, and principal and interest payments were due monthly through February 2006.
The outstanding principal balance was repaid during February 2006.
Interest expense, included in other income (expense), net on the consolidated statements of income for all debt was $597, $3,188 and $1,290 for the years ended December 31, 2006, 2005 and 2004, respectively.
During 2005, in connection with the repayment of debt, $265 in deferred financing costs was written off and included in interest expense.
For the years ended December 31, 2006, 2005 and 2004, the Company amortized and also included in interest expense $178, $57 and $48, respectively, of deferred financing costs.7.
Obligations under Capital and Operating Leases The Company leases warehouse space, office facilities, space for our retail outlet stores and certain equipment under non-cancelable operating and capital leases.
The leases expire at various dates through 2016, excluding extensions at our option, and include provisions for rental adjustments.
The following is a schedule of future minimum lease payments for capital and non-cancelable operating leases as of December 31, 2006:


| 2016 High Low | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 | 2015 | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 | As of December 31, | 2016 | (In thousands) | Balance Sheet Data: -4 | Cash and cash equivalents (including restricted cash) (5) | Property and equipment, net | Total assets | Long-term obligations, including current portion | Redeemable noncontrolling interest | Total American Tower Corporation equity |


Leveraged Performance Units During fiscal 2015, certain executives were granted performance units that we refer to as leveraged performance units, or LPUs.
LPUs contain a market condition based on our relative stock price growth over a three-year performance period.
The LPUs contain a minimum threshold performance which, if not met, would result in no payout.
The LPUs also contain a maximum award opportunity set as a fixed dollar and fixed number of shares.
After the three-year performance period, one-third of any earned units converts to unrestricted common stock.
The remaining two-thirds convert to restricted stock that will vest in equal installments on each of the first two anniversaries of the conversion date.
We recognize share-based compensation expense based on the grant date fair value of the LPUs, as determined by use of a Monte Carlo model, on a straight-line basis over the requisite service period for each separately vesting portion of the LPU award.
Total Shareholder Return Units Before fiscal 2015, certain of our executives were granted total shareholder return (“TSR”) units, which are performance-based restricted stock units that are earned based on our total shareholder return over a three-year performance period compared to companies in the S&P 500.
Once the performance results are certified, TSR units convert into unrestricted common stock.
Depending on our performance, the grantee may earn up to 200% of the target number of shares.
The target number of TSR units for each executive is set by the Compensation Committee.
We recognize share-based compensation expense based on the grant date fair value of the TSR units, as determined by use of a Monte Carlo model, on a straight-line basis over the vesting period.


| $/MWh 2012(a) 2011 2012 vs. 2011 % Change 2010 2011 vs. 2010 % Change | Mid-Atlantic(b) | Midwest(c) | New England | New York | ERCOT | Other Regions(d) | Electric revenue net of purchased power and fuel expense per MWh(e)(f) |


State and Local Rate Regulation The rates that Entergy Mississippi charges for electricity significantly influence its financial position, results of operations, and liquidity.
Entergy Mississippi is regulated and the rates charged to its customers are determined in regulatory proceedings.
A governmental agency, the MPSC, is primarily responsible for approval of the rates charged to customers.
Formula Rate Plan In March 2008, Entergy Mississippi made its annual scheduled formula rate plan filing for the 2007 test year with the MPSC.
The filing showed that a $10.1 million increase in annual electric revenues is warranted.
In June 2008, Entergy Mississippi reached a settlement with the Mississippi Public Utilities Staff that would result in a $3.8 million rate increase.
In January 2009 the MPSC rejected the settlement and left the current rates in effect.
Entergy Mississippi appealed the MPSC's decision to the Mississippi Supreme Court.


digits mainly due to competitive activity.
Developing regions decreased low single digits due to minor brand divestitures.
Organic volume increased low single digits in developing regions behind product innovation and market growth.
Global market share of the hair care category decreased more than half a point.  ?
Volume in Skin and Personal Care was unchanged including the impact of minor brand divestitures.
Organic volume increased low single digits.
Developed market volume decreased low single digits following increased pricing and due to competitive activity.
Volume increased low single digits in developing regions behind innovation and market growth.
Global market share of the skin and personal care category decreased half a point.
Net earnings decreased 3% to $1.9 billion due to a 50 basis point decrease in net earnings margin, behind an increase in SG&A as a percentage of net sales.
SG&A as a percentage of net sales increased due to increased overhead spending including investments in sales resources and incremental marketing activity.
Gross margin decreased slightly as the benefits from productivity savings and higher pricing were more than offset by higher commodity costs and unfavorable mix impacts (driven by Hair Care from an increase in the proportion of lower margin forms and categories, and unfavorable geographic mix, which more than offset benefit from Skin and Personal Care, driven by the growth of SK-II).
Fiscal year 2016 compared with fiscal year 2015 Beauty net sales decreased 9% to $11.5 billion in fiscal 2016 on a 5% decrease in unit volume.
Unfavorable foreign exchange reduced net sales by 6%.
Price increases had a 2% positive impact on net sales.
Organic sales were unchanged on organic volume that decreased 2%.
Global market share of the Beauty segment decreased 1.0 points.
Volume decreased low single digits in developed markets and decreased high single digits in developing markets.  ?
Volume in Hair Care was down mid-single digits.
Developed markets declined mid-single digits due to competitive activity while developing markets declined mid-single digits driven by increased pricing, the Venezuela deconsolidation and minor brand divestitures.
Global market share of the hair care category decreased more than a point.  ?
Volume in Skin and Personal Care decreased high single digits, while organic volume decreased low single digits, with the difference attributable to the Camay and Zest brand divestitures and the Venezuela deconsolidation.
Organic volume was unchanged in developed regions as commercial innovation was offset by ongoing competitive activity.
Organic volume declined mid-single digits in developing regions primarily due to increased pricing and competitive activity.
Global market share of the skin and personal care category decreased nearly a point.
Net earnings decreased 9% to $2.0 billion in 2016 primarily due to the reduction in net sales, along with a 10 basis-point decrease in net earnings margin.
Net earnings margin decreased due to an increase in SG&A as a percentage of net sales, largely offset by gross margin expansion.
Gross margin improved due to productivity savings, increased pricing and lower commodity costs, partially offset by negative mix.
SG&A as a percentage of net sales increased as lower marketing and overhead spending from the Company's focus on efficiencies was more than offset by the negative scale impacts from the reduction in sales.


At December 31, 2014


| Components of change during 2006 Change | 2005 | Total | Domestic | International |


| Statutory Capital and Surplus December 31 Statutory Net Income Year Ended December 31 | 2016 (a) | (In millions) | Combined Continental Casualty Companies |


Table of Contents ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Investment Portfolio There has been significant deterioration and instability in the financial markets during fiscal 2009.
This period of extraordinary disruption and readjustment in the financial markets exposes us to additional investment risk.
The value and liquidity of the securities in which we invest could deteriorate rapidly and the issuers of these securities could be subject to credit rating downgrades.
In light of the current market conditions and these additional risks, we actively monitor market conditions and developments specific to the securities in which we invest.
We believe that we take a conservative approach to investing our funds in that we invest only in highly-rated securities and diversify our portfolio of investments.
While we believe we take prudent measures to mitigate investment related risks, such risks cannot be fully eliminated because of market circumstances that are outside our control.
Our investments consist of instruments that meet quality standards that are consistent with our investment policy.
This policy specifies that, except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments by limiting our holdings with any individual issuer.
We do not hold derivative financial instruments in our portfolio of investments.
See Note 10 to the financial statements in Item 8, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources,” in Item 7; and “Risk Factors” in Item 1A of this Annual Report on Form 10-K for a description of market events that have affected the liquidity of certain municipal auction rate securities that we held at July 31, 2009.
The following table presents our portfolio of cash equivalents and available-for-sale debt securities as of July 31, 2009 by stated maturity.
The table is classified by the original maturity date listed on the security and includes cash equivalents, which consist primarily of money market funds.
At July 31, 2009, the weighted average tax adjusted interest rate earned on our money market accounts was 0.57% and the weighted average tax adjusted interest rate earned on our investments was 1.20%.


| Payments Due By Fiscal Year | Contractual Obligations | Operating Lease Obligations | Purchase Obligations | Total Obligations |


| September 24,  2005 September 25,  2004 September 27,  2003 | Research and development | Percentage of net sales | Selling, general, and administrative expenses | Percentage of net sales | Restructuring costs |


| Year ended April 30, 2012 2011 (in 000s) 2010 | Interest income: | Mortgage loans, net | Emerald Advance lines of credit | Investment securities | Other | $99,800 | Interest expense: | Borrowings | Deposits | FHLB advances | $92,089 |


| Benchmark 2011 2010 2009 | WTI crude oil(Dollars per bbl) | Western Canadian Select(Dollars per bbl)(a) | AECO natural gas sales index(Dollars per mmbtu)(b) |


| Shares vested by period | Contract Period 7 years | Directors | Employees | Employees-1 |


| 2008 2007 2006 | Dividend yield | Expected volatility | Risk-free interest rate | Forfeiture rate | Expected life |


Notes to Consolidated Financial Statements Under the regulatory framework for prompt corrective action applicable to GS Bank USA, in order to meet the quantitative requirements for being a
well-capitalized" depository institution, GS Bank USA is required to maintain a Tier 1 capital ratio of at least 6%, a Total capital ratio of at least 10% and a Tier 1 leverage ratio of at least 5%.
GS Bank USA agreed with the Federal Reserve Board to maintain minimum capital ratios in excess of these
well-capitalized" levels.
Accordingly, for a period of time, GS Bank USA is expected to maintain a Tier 1 capital ratio of at least 8%, a Total capital ratio of at least 11% and a Tier 1 leverage ratio of at least 6%.
As noted in the table below, GS Bank USA was in compliance with these minimum capital requirements as of December 2013 and December 2012.
The table below presents information regarding GS Bank USA’s regulatory capital ratios under Basel I, as implemented by the Federal Reserve Board.
The information as of December 2013 reflects the revised market risk regulatory capital requirements, which became effective on January 1, 2013.
These changes resulted in increased regulatory capital requirements for market risk.
The information as of December 2012 is prior to the implementation of these revised market risk regulatory capital requirements.


| Years ended December 31 (in millions) 2006 2005 2004 | Net interest income | Provision for loan losses | Non-interest income: | Fee-based revenues | Other non-interest income | Total non-interest income | Non-interest expense | Income before income tax expense | Income tax expense | Income from continuing operations | Average earning assets | Average liabilities | Year end assets |


| Fiscal 2014 Quarter Ended | (In millions, except per share amounts) | Total net revenue | Cost of revenue | All other costs and expenses | Operating income (loss) from continuing operations | Net income (loss) from continuing operations | Net income (loss) from discontinued operations | Net income (loss) | Basic net income (loss) per share from continuing operations | Basic net income (loss) per share from discontinued operations | Basic net income (loss) per share | Diluted net income (loss) per share from continuing operations | Diluted net income (loss) per share from discontinued operations | Diluted net income (loss) per share |


| (Dollars in thousands) One Year  or Less After One Year and Through Five Years After  Five Years Total | Fixed rate loans: | Commercial loans | Premium wine | Community development loans | Consumer and other | Total fixed-rate loans | Variable-rate loans: | Commercial loans | Premium wine | Community development loans | Consumer and other | Total variable-rate loans |


| Total cost of shares purchased Total number of shares purchased Average price paid per share | 2008 | 2007 | 2006 |


| 2013 2012 2011 | Weighted-average fair value ($) | Risk-free interest rate (%) | Average expected option life (years) | Expected volatility (%) | Expected dividend yield (%) |


guidance to amend or clarify portions of the final rule in 2013.
We anticipate that if the EPA issues additional responses, amendments and/or policy guidance on the final rule, it will reduce the anticipated capital, operations and maintenance costs resulting from the regulation.
Generally, the NSPS final rule will require expenditures for updated emissions controls, monitoring and record-keeping requirements at affected facilities in the crude-oil and natural gas industry.
We do not expect these expenditures will have a material impact on our results of operations, financial position or cash flows.
CERCLA - The federal Comprehensive Environmental Response, Compensation and Liability Act, also commonly known as Superfund (CERCLA), imposes strict, joint and several liability, without regard to fault or the legality of the original act, on certain classes of “persons” (defined under CERCLA) that caused and/or contributed to the release of a hazardous substance into the environment.
These persons include but are not limited to the owner or operator of a facility where the release occurred and/or companies that disposed or arranged for the disposal of the hazardous substances found at the facility.
Under CERCLA, these persons may be liable for the costs of cleaning up the hazardous substances released into the environment, damages to natural resources and the costs of certain health studies.
Neither we nor ONEOK Partners expect our respective responsibilities under CERCLA, for this facility and any other, will have a material impact on our respective results of operations, financial position or cash flows.
Chemical Site Security - The United States Department of Homeland Security released an interim rule in April 2007 that requires companies to provide reports on sites where certain chemicals, including many hydrocarbon products, are stored.
We completed the Homeland Security assessments, and our facilities subsequently were assigned one of four risk-based tiers ranging from high (Tier 1) to low (Tier 4) risk, or not tiered at all due to low risk.
To date, four of our facilities have been given a Tier 4 rating.
Facilities receiving a Tier 4 rating are required to complete Site Security Plans and possible physical security enhancements.
We do not expect the Site Security Plans and possible security enhancements cost will have a material impact on our results of operations, financial position or cash flows.
Pipeline Security - The United States Department of Homeland Security’s Transportation Security Administration and the DOT have completed a review and inspection of our “critical facilities” and identified no material security issues.
Also, the Transportation Security Administration has released new pipeline security guidelines that include broader definitions for the determination of pipeline “critical facilities.
” We have reviewed our pipeline facilities according to the new guideline requirements, and there have been no material changes required to date.
Environmental Footprint - Our environmental and climate change strategy focuses on taking steps to minimize the impact of our operations on the environment.
These strategies include: (i) developing and maintaining an accurate greenhouse gas emissions inventory according to current rules issued by the EPA; (ii) improving the efficiency of our various pipelines, natural gas processing facilities and natural gas liquids fractionation facilities; (iii) following developing technologies for emission control and the capture of carbon dioxide to keep it from reaching the atmosphere; and (iv) utilizing practices to reduce the loss of methane from our facilities.
We participate in the EPA’s Natural Gas STAR Program to voluntarily reduce methane emissions.
We continue to focus on maintaining low rates of lost-and-unaccounted-for natural gas through expanded implementation of best practices to limit the release of natural gas during pipeline and facility maintenance and operations.
EMPLOYEESWe employed 4,859 people at January 31, 2013, including 705 people at Kansas Gas Service who are subject to collective bargaining agreements.
The following table sets forth our contracts with collective bargaining units at January 31, 2013:


| For the Year Ended December 31, 2005 For the Year Ended December 31, 2004 | (in millions, except per share data) | Revenues | Net Earnings | Earnings Per Share: | Basic | Diluted |


| Options Weighted-Average Exercise Price | Balance, January 1, 2000 | Granted | Exercised | Forfeited | Balance, December 31, 2000 | Granted | Exercised | Forfeited | Balance, December 31, 2001 | Granted | Exercised | Forfeited | Balance, December 31, 2002 |


| Year Ended December 31, 2005 Standard Lines Specialty Lines OtherInsurance Total | (In millions) | Pretax unfavorable net prior year claim and | allocated claim adjustment expense development, | excluding the impact of corporate aggregate | reinsurance treaties: | Core (Non-APMT) | APMT | Total | Ceded losses related to corporate aggregate | reinsurance treaties | Pretax unfavorable net prior year development | before impact of premium development | Unfavorable (favorable) premium | development, excluding impact of corporate | aggregate reinsurance treaties | Ceded premiums related to corporate aggregate | reinsurance treaties | Total premium development | Total 2005 unfavorable net prior year development | (pretax) |


Asset allocations are reviewed and rebalanced periodically based on funded status.
For 2019, the investment strategy for Plan assets is to maintain a broadly diversified portfolio designed to achieve our target of an average long-term rate of return of 5.20%.
While we believe we can achieve a long-term average return of 5.20%, we cannot be certain that the portfolio will perform to our expectations.
Assets are strategically allocated among debt and equity portfolios to achieve a diversification level that reduces fluctuations in investment returns.
Asset allocation target ranges and strategies are reviewed periodically with the assistance of an independent external consulting firm.


| In Millions | Payments Due | Total | CMS Energy, including Consumers | Total PPAs | Other | Consumers | PPAs | MCV PPA | Palisades PPA | Related-party PPAs | Other PPAs | Total PPAs | Other |


| Years Ended December 31, | 2014 | (In millions) | Net investment income — in the above yield table | Real estate discontinued operations | Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | Equity method operating joint ventures | Contractholder-directed unit-linked investments | Divested Businesses | Incremental net investment income from CSEs | Net investment income — GAAP consolidated statements of operations |


| Fair Value Gains (Losses) Year ended | In millions | Assets | Nonaccrual loans | Loans held for sale | Equity investments | Commercial mortgage servicing rights | Other intangible assets | OREO and foreclosed assets | Long-lived assets held for sale | Total assets |


| AAG  December 31, American  December 31, | 2014 | Cash | Short-term investments | Restricted cash and short-term investments -1 | Total cash, short-term investments and restricted cash and short-term investments | Citicorp | In billions of dollars | Principal amount of credit card receivables in trusts | Ownership interests in principal amount of trust credit card receivables | Sold to investors via trust-issued securities | Retained by Citigroup as trust-issued securities | Retained by Citigroup via non-certificated interests | Total ownership interests in principal amount of trust credit card receivables | Other amounts recorded on the balance sheet related to interests retained in the trusts | Other retained interests in securitized assets | Residual interest in securitized assets-1 | Amounts payable to trusts | In millions of dollars | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Total operating expenses | Net credit losses | Credit reserve build (release) | Provision for benefits and claims | Provision for unfunded lending commitments | Provisions for credit losses and for benefits and claims | (Loss) from continuing operations before taxes | Benefits for income taxes | (Loss) from continuing operations | Net income attributable to noncontrolling interests | Net (loss) | Average assets(in billions of dollars) | Net credit losses as a percentage of average loans |


| Year Ended December 31 | ($ in millions, except per share amounts) | Sales and Service Revenues | Goodwill Impairment | Operating income (loss) | Net earnings (loss) | Total assets | Long-term debt -1 | Total long-term obligations | Free cash flow -2 | Basic earnings (loss) per share | Diluted earnings (loss) per share | Stock-based  compensation expense | (millions, except per share data) | 2006: | As reported comparable | SFAS No. 123(R) adoption impact | As reported total | 2005: | As reported comparable | Pro forma incremental | Pro forma total |


| Change | Fiscal Year | 2015 | Net Income | Net Income, as a % of Revenue | Diluted EPS |


| 2010 2009 2008 % Change2010 v 2009 % Change2009 v 2008 | Average train speed (miles per hour) | Average terminal dwell time (hours) | Average rail car inventory (thousands) | Gross ton-miles (billions) | Revenue ton-miles (billions) | Operating ratio | Employees (average) | Customer satisfaction index |


NONINTEREST INCOME Summary Noninterest income was $3.367 billion for 2008 and $3.790 billion for 2007.
Noninterest income for 2008 included the following: ?
Gains of $246 million related to the mark-to-market adjustment on our BlackRock LTIP shares obligation, ?
Losses related to our commercial mortgage loans held for sale of $197 million, net of hedges, ?
Impairment and other losses related to alternative investments of $179 million, ?
Income from Hilliard Lyons totaling $164 million, including the first quarter gain of $114 million from the sale of this business, ?
Net securities losses of $206 million, ?
A first quarter gain of $95 million related to the redemption of a portion of our Visa Class B common shares related to Visas March 2008 initial public offering, ?
A third quarter $61 million reversal of a legal contingency reserve established in connection with an acquisition due to a settlement, ?
Trading losses of $55 million, ?
A $35 million impairment charge on commercial mortgage servicing rights, and ?
Equity management losses of $24 million.
Noninterest income for 2007 included the following: ?
The impact of $82 million gain recognized in connection with our transfer of BlackRock shares to satisfy a portion of PNCs LTIP obligation and a $209 million net loss on our LTIP shares obligation, ?
Income from Hilliard Lyons totaling $227 million, ?
Trading income of $104 million, ?
Equity management gains of $102 million, and ?
Gains related to our commercial mortgage loans held for sale of $3 million, net of hedges.
Apart from the impact of these items, noninterest income increased $16 million in 2008 compared with 2007.
Additional analysis Fund servicing fees increased $69 million in 2008, to $904 million, compared with $835 million in 2007.
The impact of the December 2007 acquisition of Albridge Solutions Inc.  (Albridge Solutions) and growth in Global Investment Servicings offshore operations were the primary drivers of this increase.


Mammography/Breast Care product sales increased 74% in fiscal 2007 compared to fiscal 2006 primarily due to a $178.0 million increase in digital mammography system sales, an increase of $50.1 million in breast biopsy device sales from Suros and a $8.4 million increase in CAD product sales from R2.
Suros and R2 are entities we acquired in the fourth quarter of fiscal 2006.
Prior to our acquisition of R2 we had sold CAD products together with our digital mammography systems, primarily from R2 as a distributor.
The increase in CAD product sales represents the additional CAD sales made without our digital mammography systems.
These increases were partially offset by an $8.6 million decrease in MultiCare stereotactic table sales and an $8.3 million decrease in analog mammography systems sales.
The increase in our digital mammography product sales was primarily attributable to an increase in the number of Selenia systems and related components sold, primarily in the United States.
In fiscal 2007, we sold 1,189 digital mammography systems compared to 555 systems in fiscal 2006.
This revenue was partially offset by a decrease in average selling prices primarily attributable to increased competition, higher dealer sales, changes in product configuration and increased multi-system sales.
We attribute the increase in digital mammography system sales primarily to the growing acceptance of our Selenia mammography system and of digital mammography in general.
The decrease in MultiCare stereotactic tables was primarily attributable to a decrease in the number of systems sold worldwide in the current fiscal year compared to fiscal 2006 due in part to higher demand in 2006 related to increased sales activity following our acquisition of Fischers mammography intellectual property in September 2005 and, to a lesser extent, a decrease in average selling prices primarily in the United States.
The decrease in sales of our analog mammography systems was primarily attributable to a decrease in the number of systems sold worldwide and, to a lesser extent, a decrease in average selling prices.
We believe that this decrease in analog system sales was primarily due to the shift in product sales to digital systems.
We expect sales for analog systems to continue to decrease in fiscal 2008.
Osteoporosis assessment product sales decreased 25% in fiscal 2007 compared to fiscal 2006.
This decrease was primarily due to a $13.9 million decrease in product sales in the United States primarily due to a decrease in the number of bone densitometry systems sold and, to a lesser extent, a decrease in the average selling prices.
We believe this decrease in our domestic unit sales reflect a decline in market conditions due to a reduction in reimbursement for osteoporosis assessment exams.
Other product sales increased 105% in fiscal 2007 compared to fiscal 2006.
This increase was primarily due to the addition of $29.6 million of sales from AEG, acquired during the third quarter of fiscal 2006, and an $8.7 million increase in our mini C-arm system sales.
The increase in mini C-arm revenue is primarily the result of an increase in the number of systems sold in the United States and Europe.
In fiscal 2007, approximately 75% of product sales were generated in the United States, 15% in Europe, 5% in Asia, and 5% in other international markets.
In fiscal 2006, approximately 72% of product sales were generated in the United States, 17% in Europe, 7% in Asia, and 4% in other international markets.
We believe the higher growth in sales dollars to the United States market is primarily due to an increase in demand for our Selenia digital mammography system as adoption of digital mammography is occurring at an increased rate in the United States as compared to international markets.


During 2008, certain financial markets continued to experience price declines due to market and liquidity disruptions.
We experienced this illiquidity and disruption in certain of our MBS, CMBS and ABS fixed income securities, particularly in our Prime residential mortgage-backed securities (‘‘Prime’’), Alt-A, CMBS, CRE CDO, ABS RMBS, ABS CDO and other collateralized debt obligations (‘‘other CDO’’) portfolios.
These portfolios totaled $7.90 billion, or approximately 8% of our total investments at December 31, 2008.
Other securities markets, including certain other asset-backed and real estate-backed securities markets, also experienced illiquidity, but to a lesser degree.
We determine the fair values of securities comprising these illiquid portfolios by obtaining information from an independent third-party valuation service provider and brokers.
We confirmed the reasonableness of the fair value of these portfolios as of December 31, 2008 by analyzing available market information including, but not limited to, collateral quality, anticipated cash flows, credit enhancements, default rates, loss severities, securities’ relative position within their respective capital structures, and credit ratings from statistical rating agencies.


| At December 31, 2016 A.M. Best Rating(a) Gross Reinsurance Assets Percent of Reinsurance Assets (b) Uncollateralized Reinsurance Assets | (in millions) | Reinsurer: | Swiss Reinsurance Group of Companies | Berkshire Hathaway Group of Companies | Munich Reinsurance Group of Companies |


| (Dollars in millions, except per share amounts) Fiscal2017 Fiscal2016 Fiscal2015 2017-2016% Change 2016-2015% Change | Total net revenue | Operating income from continuing operations | Net income from continuing operations | Diluted net income per share from continuing operations |


| (in thousands) | Cash paid | Fair value of shares to be acquired through a follow-on merger | Fair value of equity awards allocated to purchase consideration | Total purchase consideration | Goodwill | Identifiable intangibles assets acquired | Cash and other assets acquired | Liabilities assumed | Total purchase allocation |


Share Repurchase Plan On April 23, 2008, the board of directors authorized a new share repurchase program of up to $1.5 billion with no stated expiration date.
During the year ended December 31, 2009, there were no purchases under this program (December 31, 2008: 5.5 million common shares purchased under this program at a cost of $139.4 million, and 6.1 million shares purchased under the prior share repurchase plan at a cost of $154.5 million), leaving approximately $1.4 billion authorized at the end of the year.
Separately, an aggregate of 1.6 million shares were withheld on vesting events during the year ended December 31, 2009, to meet employees’ tax obligations (December 31, 2008: 0.3 million).
The value of these shares withheld was $22.9 million (December 31, 2008: $4.6 million).


HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 75 major oil companies damaged the groundwater in Maryland by introducing thereto gasoline with MTBE.
The suit filed in Maryland was filed in state court, but has not been served to date.
In September 2003, we received a directive from the New Jersey Department of Environmental Protection (NJDEP) to remediate contamination in the sediments of the Lower Passaic River.
The NJDEP is also seeking natural resource damages.
The directive, insofar as it affects us, relates to alleged releases from a petroleum bulk storage terminal in Newark, New Jersey we previously owned.
We and over 70 companies entered into an Administrative Order on Consent with the Environmental Protection Agency (EPA) to study the same contamination; this work remains ongoing.
We and other parties settled a cost recovery claim by the State of New Jersey and also agreed with EPA to fund remediation of a portion of the site.
On March 4, 2016, the EPA issued a Record of Decision (ROD) in respect of the lower eight miles of the Lower Passaic River, selecting a remedy that includes bank-to-bank dredging at an estimated cost of $1.38 billion.
The ROD does not address the upper nine miles of the Lower Passaic River or the Newark Bay, which may require additional remedial action.
In addition, the federal trustees for natural resources have begun a separate assessment of damages to natural resources in the Passaic River.
Given that the EPA has not selected a remedy for the entirety of the Lower Passaic River or the Newark Bay, total remedial costs cannot be reliably estimated at this time.
Based on currently known facts and circumstances, we do not believe that this matter will result in a significant liability to us because there are numerous other parties who we expect will share in the cost of remediation and damages and our former terminal did not store or use contaminants which are of the greatest concern in the river sediments and could not have contributed contamination along most of the river’s length.
In March 2014, we received an Administrative Order from EPA requiring us and 26 other parties to undertake the Remedial Design for the remedy selected by the EPA for the Gowanus Canal Superfund Site in Brooklyn, New York.
The remedy includes dredging of surface sediments and the placement of a cap over the deeper sediments throughout the Canal and in-situ stabilization of certain contaminated sediments that will remain in place below the cap.
EPA has estimated that this remedy will cost $506 million; however, the ultimate costs that will be incurred in connection with the design and implementation of the remedy remain uncertain.
Our alleged liability derives from our former ownership and operation of a fuel oil terminal and connected ship-building and repair facility adjacent to the Canal.
We indicated to EPA that we would comply with the Administrative Order and are currently contributing funding for the Remedial Design based on an interim allocation of costs among the parties.
At the same time, we are participating in an allocation process whereby a neutral expert selected by the parties will determine the final shares of the Remedial Design costs to be paid by each of the participants.
On September 28, 2017, we received a general notice letter and offer to settle from the U. S.  Environmental Protection Agency relating to Superfund claims for the Ector Drum, Inc.  Superfund Site in Odessa, TX.
The EPA and Texas Commission on Environmental Quality (TCEQ) took clean-up and response action at the site commencing in 2014 and concluded in December 2015.
The site was determined to have improperly stored industrial waste, including drums with oily liquids.
The total clean-up cost incurred by the EPA was approximately $3.5 million.
We were invited to negotiate a voluntary settlement for our purported share of the clean-up costs.
Our share, if any, is undetermined.
From time to time, we are involved in other judicial and administrative proceedings, including proceedings relating to other environmental matters.
We cannot predict with certainty if, how or when such proceedings will be resolved or what the eventual relief, if any, may be, particularly for proceedings that are in their early stages of development or where plaintiffs seek indeterminate damages.
Numerous issues may need to be resolved, including through potentially lengthy discovery and determination of important factual matters before a loss or range of loss can be reasonably estimated for any proceeding.
Subject to the foregoing, in management’s opinion, based upon currently known facts and circumstances, the outcome of the aforementioned proceedings are not expected to have a material adverse effect on our financial condition, results of operations or cash flows.
Unconditional Purchase Obligations and Commitments The following table shows aggregate information for certain unconditional purchase obligations and commitments at December 31, 2017, which are not included elsewhere within these Consolidated Financial Statements:


| Year Estimated CTC Revenue Estimated Stranded Cost Amortization | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | December 31, 2005 | Amortized Cost | Cash and cash equivalents | Marketable equity securities | U.S. Treasury obligations and direct obligations of U.S. government agencies | Other debt securities | Total available-for-sale securities | December 31, 2004 | Amortized Cost | Cash and cash equivalents | Equity securities | U.S. Treasury obligations and direct obligations of U.S. government agencies | Other debt securities | Total available-for-sale securities |


| 2009 2008 | Balance at January 1, | Unit redemptions | Fair market value amortization | Other | Balance at December 31, |


| December 31, 2006 December 31, 2005 | In the Event of Death | (dollars in millions) | Variable Annuity Contracts | Return of net deposits | Account value | Net amount at risk | Average attained age of contractholders | Minimum return or contract value | Account value | Net amount at risk | Average attained age of contractholders | Average period remaining until earliest expected annuitization |


| December 31, 2012 December 31, 2011 | ContractType | Derivatives designated as hedging instruments: | Cash flow hedges | Fixed price | -Natural gas (Bcf) | -Crude oil and NGLs (MMBbl) | Basis | -Natural gas (Bcf) | Interest-rate contracts (Millions of dollars) | Fair value hedges | Basis | -Natural gas (Bcf) | Derivatives not designated as hedging instruments: | Fixed price | -Natural gas (Bcf) | Options | Basis | -Natural gas (Bcf) | Index | -Natural gas (Bcf) |


| Year Ended December 31, | 2007 | (In thousands, except per share data) | Statements of Operations Data: | Revenues: | Rental and management | Network development services | Total operating revenues | Operating expenses: | Costs of operations (exclusive of items shown separately below) | Rental and management | Network development services | Depreciation, amortization and accretion | Selling, general, administrative and development expense | Impairments, net loss on sale of long-lived assets, restructuring and merger related expense | Total operating expenses | Operating income (loss) | Interest income, TV Azteca, net | Interest income | Interest expense | Loss on retirement of long-term obligations | Other income (expense) | Income (loss) before income taxes, minority interest and income (loss) on equity method investments | Income tax (provision) benefit | Minority interest in net earnings of subsidiaries | Income (loss) on equity method investments | Income (loss) from continuing operations before cumulative effect of change in accounting principle | Basic and diluted income (loss) per common share from continuing operations before cumulative effect of change in accountingprinciple(1) | Weighted average common shares outstanding-1 | Basic | Diluted | Other Operating Data: | Ratio of earnings to fixed charges-2 |


| Cash portion of consideration $14,527 | Fair value of Boston Scientific common stock | Fair value of Boston Scientific options exchanged for Guidant stock options | Buyout of options for certain former employees | 27,588 | Other acquisition-related costs | Johnson & Johnson termination fee | Other direct acquisition costs | $28,358 |


Management’s Discussion and Analysis of Financial Condition and Results of Operations assumed and actual policyholder behavior and between the performance of the actively managed funds underlying the separate accounts and their respective indices.
While the Company actively manages this dynamic hedging program, increased U. S.  GAAP earnings volatility may result from factors including, but not limited to: policyholder behavior, capital markets, divergence between the performance of the underlying funds and the hedging indices, changes in hedging positions and the relative emphasis placed on various risk management objectives.
Macro Hedge Program The Company’s macro hedging program uses derivative instruments, such as options and futures on equities and interest rates, to provide protection against the statutory tail scenario risk arising from GMWB and GMDB liabilities on the Company’s statutory surplus.
These macro hedges cover some of the residual risks not otherwise covered by the dynamic hedging program.
Management assesses this residual risk under various scenarios in designing and executing the macro hedge program.
The macro hedge program will result in additional U. S.  GAAP earnings volatility as changes in the value of the macro hedge derivatives, which are designed to reduce statutory reserve and capital volatility, may not be closely aligned to changes in GAAP liabilities.
Variable Annuity Hedging Program Sensitivities The underlying guaranteed withdrawal benefit liabilities (excluding the life contingent portion of GMWB contracts) and hedge assets within the GMWB hedge and Macro hedge programs are carried at fair value.
The following table presents our estimates of the potential instantaneous impacts from sudden market stresses related to equity market prices, interest rates, and implied market volatilities.
The following sensitivities represent: (1) the net estimated difference between the change in the fair value of GMWB liabilities and the underlying hedge instruments and (2) the estimated change in fair value of the hedge instruments for the macro program, before the impacts of amortization of DAC and taxes.
As noted in the preceding discussion, certain hedge assets are used to hedge liabilities that are not carried at fair value and will not have a liability offset in the U. S.  GAAP sensitivity analysis.
All sensitivities are measured as of December 31, 2016 and are related to the fair value of liabilities and hedge instruments in place at that date for the Company’s variable annuity hedge programs.
The impacts presented in the table that follows are estimated individually and measured without consideration of any correlation among market risk factors.


Critical Accounting Policies and Estimates Our significant accounting policies are disclosed in Item 8, Financial Statements and Supplementary Data - Note 1, “Accounting Policies” to our Consolidated Financial Statements.
The accounting policies and estimates that we believe are the most critical to an understanding of our results of operations and financial condition are those that require complex management judgment regarding matters that are highly uncertain at the time policies were applied and estimates were made.
These accounting policies and estimates are discussed below; however, the additional accounting policy detail in the footnote previously referenced is important to the discussion of each of the topics.
Different estimates reasonably could have been used in the current period that would have had a material effect on these financial statements, and changes in these estimates are likely to occur from period-to-period in the future.
Taxation.
We operate in several countries and several states through our various subsidiaries, and must allocate our income, expenses, and earnings under the various laws and regulations of each of these taxing jurisdictions.
Accordingly, our provision for income taxes represents our total estimate of the liability that we have incurred for doing business each year in all of our locations.
Annually we file tax returns that represent our filing positions within each jurisdiction and settle our return liabilities.
Each jurisdiction has the right to audit those returns and may take different positions with respect to income and expense allocations and taxable earnings determinations.
Because the determinations of our annual provisions are subject to judgments and estimates, it is possible that actual results will vary from those recognized in our financial statements.
As a result, it is likely that additions to, or reductions of, income tax expense will occur each year for prior reporting periods as actual tax returns and tax audits are settled.
the nature of the business; making a significant accounting policyy change in certain situations; entering into transactions with affiliates; and incurring indebtedness through the subsidiaries (other than the borrower, Invesco Finance PLC).
Many of these restrictions are subject to certain minimum thresholds and exceptions.
Financial covenants under the credit agreement include: (i) the quarterly maintenance of a debt/EBITDA leverage ratio, as defined in the credit agreement, of not greater than 3.25:1.00, (ii) a coverage ratio (EBITDA, as defined in the credit agreement/interest payable for the four consecutive fiscal quarters ended before the date of determination) of not less than 4.00:1.00.
The credit agreement governing the credit facility also contains customary provisions regarding events of default which could result in an acceleration or increase in amounts due, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control, certain judgments, ERISA matters, cross-default to other debt agreements, governmental action prohibiting or restricting the company or its subsidiaries in a manner that has a material adverse effect and failure of certain guaranty obligations.
The company is in compliance with all regulatory minimum net capital requirements.
The lenders (and their respective affiliates) may have provided, and may in the future provide, investment banking, cash management, underwriting, lending, commercial banking, leasing, foreign exchange, trust or other advisory services to the company a and its subsidiaries and affiliates.
These parties may have received, and may in the future receive, customary compensation forrthese services.
At December 31, 2017, the company maintains approximately $10.6 million in letters of credit from a variety of banks.
The letters of credit are generally one-year automatically-renewable facilities and are maintained for various commercial reasons.


| $ in millions Pension Plans Medical and Life Plans | Year Ending December 31 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 through 2018 | 2008 | $ in millions | Information & Services | Mission Systems | Information Technology | Technical Services | Aerospace | Integrated Systems | Space Technology | Electronics | Shipbuilding | Total backlog |


| Gulf Coast 2015 2016 2017 2018 AnnualAverage for2015-2018 | (Dollars in millions unless otherwise stated) | Net Coal and Nuclear Capacity (MW)(a) | Forecasted Coal and Nuclear Capacity (MW)(b) | Total Coal and Nuclear Sales (MW)(c) | Percentage Coal and Nuclear Capacity Sold Forward(d) | Total Forward Hedged Revenues(e) | Weighted Average Hedged Price ($ per MWh)(e) | Average Equivalent Natural Gas Price ($ per MMBtu)(e) | Gas Price Sensitivity Up $0.50/MMBtu on Coal and Nuclear Units | Gas Price Sensitivity Down $0.50/MMBtu on Coal and Nuclear Units | Heat Rate Sensitivity Up 1 MMBtu/MWh on Coal and Nuclear Units | Heat Rate Sensitivity Down 1 MMBtu/MWh on Coal and Nuclear Units |


The following is a summary of line of business results.
These results exclude the income (loss) from discontinued operations related to our previously discussed divestiture of Bel Air.
The Other/One-Time column for 2005 includes the additional gain from our sale of the Private Asset Management business, and for 2004, includes merger and integration costs related to the GSS acquisition.


| Twelve Months Ended | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Electric operating income |


December 31, 2012, 2011 and 2010 was $(30) million, $98 million and $65 million, respectively.
The cumulative tax benefit related to the adjustment for pension and other postretirement benefits at December 31, 2012 and 2011 was approximately $960 million and $990 million, respectively.
There was no tax (cost) benefit related to the change in the unrealized gain (loss) on marketable securities for the year ended December 31, 2012.
The tax (cost) benefit related to the change in the unrealized gain (loss) on marketable securities for the years ended December 31, 2011 and 2010 was $(0.2) million and $0.6 million, respectively.
The tax benefit related to the change in the unrealized gain (loss) on derivatives for the years ended December 31, 2012, 2011 and 2010 was $4 million, $19 million and $1 million, respectively.18.
Employee Savings Plan PPGs Employee Savings Plan (Savings Plan) covers substantially all U. S.  employees.
The Company makes matching contributions to the Savings Plan, at management's discretion, based upon participants savings, subject to certain limitations.
For most participants not covered by a collective bargaining agreement, Company-matching contributions are established each year at the discretion of the Company and are applied to participant savings up to a maximum of 6% of eligible participant compensation.
For those participants whose employment is covered by a collective bargaining agreement, the level of Company-matching contribution, if any, is determined by the relevant collective bargaining agreement.
The Company-matching contribution was suspended from March 2009 through June 2010 as a cost savings measure in recognition of the adverse impact of the global recession.
Effective July 1, 2010, the Company match was reinstated at 50% on the first 6% of compensation contributed for most employees eligible for the Company-matching contribution feature.
This included the union represented employees in accordance with their collective bargaining agreements.
On January 1, 2011, the Company match was increased to 75% on the first 6% of compensation contributed by these eligible employees and this level was maintained throughout 2012.
Compensation expense and cash contributions related to the Company match of participant contributions to the Savings Plan for 2012, 2011 and 2010 totaled $28 million, $26 million and $9 million, respectively.
A portion of the Savings Plan qualifies under the Internal Revenue Code as an Employee Stock Ownership Plan.
As a result, the dividends on PPG shares held by that portion of the Savings Plan totaling $18 million, $20 million and $24 million for 2012, 2011 and 2010, respectively, were tax deductible to the Company for U. S.  Federal tax purposes.


| December 31, 2018 December 31, 2017 | PrudentialFinancial | (in millions) | General obligation short-term debt: | Commercial paper | Current portion of long-term debt | Subtotal | General obligation long-term debt: | Senior debt | Junior subordinated debt | Surplus notes -1 | Subtotal | Total general obligations | Limited and non-recourse borrowings -2 | Short-term debt | Current portion of long-term debt | Long-term debt | Subtotal | Total borrowings |


| December 31, | 2011 | (in billions) | Assets Under Management and Administration | Advice & Wealth Management AUM | Asset Management AUM | Eliminations | Total Assets Under Management | Total Assets Under Administration | Total AUM and AUA |


| Year Gallons Average Priceper Gallon Aircraft FuelExpense Percent of TotalOperating Expenses | 2017 | 2016 | 2015 | 2007 | (in millions) | Net income | Other comprehensive income (loss), net of tax: | Change in foreign currency translation adjustments | Change in net unrealized investments gains (losses)(1) | Additional minimum pension liability adjustment | Change in pension and postretirement unrecognized net periodic benefit (cost) | Other comprehensive loss, net of tax expense (benefit) of $11, ($264), ($371) | Comprehensive income | Pre-SFAS No. 158 | (in millions) | Other assets | Total assets | Income taxes | Other liabilities | Total liabilities | Accumulated other comprehensive income (loss) | Total stockholders’ equity | Year ended December 31, | 2007 | (in millions) | Impact on revenues and adjusted operating income: | International Insurance | International Investments | Total International Insurance and Investments Division |


Equity Method Investment Earnings We include our share of the earnings of certain affiliates based on our economic ownership interest in the affiliates.
Significant affiliates include the Ardent Mills joint venture and affiliates that produce and market potato products for retail and foodservice customers.
Our share of earnings from our equity method investments was $122.1 million ($119.1 million in the Commercial Foods segment and $3.0 million in the Consumer Foods segment) and $32.5 million ($29.7 million in the Commercial Foods segment and $2.8 million in the Consumer Foods segment) in fiscal 2015 and 2014, respectively.
The increase in fiscal 2015 compared to fiscal 2014 reflects the earnings from the Ardent Mills joint venture as well as higher profits for an international potato joint venture.
The earnings from the Ardent Mills joint venture reflect results for 11 months of operations, as we recognize earnings on a one-month lag, due to differences in fiscal year periods.
In fiscal 2014, earnings also reflected a $3.4 million charge reflecting the year-end write-off of actuarial losses in excess of 10% of the pension liability for an international potato venture.


| -1 (2) December 31, 2009 December 31, 2008 | NAIC Designation | (in millions) | 1 | 2 | Subtotal High or Highest Quality Securities | 3 | 4 | 5 | 6 | Subtotal Other Securities-4 | Total Public Fixed Maturities |


The Company will continue to rely upon debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flows.
Funding decisions will be guided by our capital structure planning objectives.
The primary goals of the Company’s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense.
The majority of International Paper’s debt is accessed through global public capital markets where we have a wide base of investors.
Maintaining an investment grade credit rating is an important element of International Paper’s financing strategy.
At December 31, 2015, the Company held long-term credit ratings of BBB (stable outlook) and Baa2 (stable outlook) by S&P and Moody’s, respectively.
Contractual obligations for future payments under existing debt and lease commitments and purchase obligations at December 31, 2015, were as follows:


| Amount (In Millions) | 2007 net revenue | Rider revenue | Purchased power capacity | Volume/weather | Other | 2008 net revenue |


| As of December 31, | 2017-4 | (In millions) | Consolidated Balance Sheet Data:-1 | Cash and cash equivalents | Short-term investments | Long-term investments | Working capital - continuing operations | Working capital - discontinued operations | Working capital total-2 | Total assets - continuing operations | Total assets - discontinued operations | Total assets | Short-term debt | Long-term debt | Total stockholders’ equity-3 |


The discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled.
Rates for U. S.  and certain non-U.
S.  plans at December 31, 2018 were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate.
For other non-U.
S.  plans, we base the discount rate on comparable indices within each of the countries.
The Company measures the service cost and interest cost components of net periodic benefit cost for pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans’ projected cash flows.
The rate of compensation increase assumption is determined by the Company based upon annual reviews.
The expected long-term rate of return assumption for U. S.  pension plan assets is based upon the target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class, as well as correlations among asset classes.
We evaluate the rate of return assumption on an annual basis.
The expected long-term rate of return assumption used in computing 2018 net periodic pension cost for the U. S.  plans was 8.00 percent.
As of December 31, 2018, the 5-year, 10-year and 15-year annualized return on plan assets for the primary U. S.  plan was 5.5 percent, 9.2 percent and 6.4 percent, respectively.
The annualized return since inception was 10.3 percent.
The assumed health care cost trend rates are as follows:


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


| Year Ended December 31 2018 over 2017 2017 over 2016 | ($ in millions) | Sales and service revenues | Segment operating income | As a percentage of segment sales |


RETIREMENT PLANS Defined Benefit Plans Pension – This qualified noncontributory defined benefit plan is frozen to new participation.
No service-related benefits have been since July 1, 2013.
All participants in the Plan are currently 100% vested in their benefits.
Plan assets consist principally of corporate equity securities, mutual fund investments, real estate, and fixed income investments.
Plan benefits are paid as a lump-sum cash value or an annuity at retirement age.
Contributions to the plan are based on actuarial recommendation and pension regulations.
Although there was no minimum regulatory contribution required in 2016, we elected to contribute $4 million to the pension plan.
Currently, it is expected that no minimum regulatory contributions will be required in 2017.
Supplemental Retirement – These unfunded nonqualified plans are for certain current and former employees.
Each year, Company contributions to these plans are made in amounts sufficient to meet benefit payments to plan participants.
Postretirement Medical/Life – This unfunded health care and life insurance plan provides postretirement medical benefits to certain full-time employees who meet minimum age and service requirements.
The plan also provides specified life insurance benefits to certain employees.
The plan is contributory with retiree contributions adjusted annually, and contains other cost-sharing features such as deductibles and coinsurance.
Plan coverage is provided by self-funding or health maintenance organization options.
Our contribution towards the retiree medical premium has been permanently frozen at an amount that does not increase in any future year.
Retirees pay the difference between the full premium rates and our capped contribution.


AMERICAN AIRLINES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) temporary, targeted funding relief (subject to certain terms and conditions) for single employer and multiemployer pension plans that suffered significant losses in asset value due to the steep market slide in 2008.
Under the Relief Act, the Company’s 2010 minimum required contribution to its defined benefit pension plans was reduced from $525 million to approximately $460 million.
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued) The following results drove changes in CCG operating income by approximately the amounts indicated:


| Years Ended December 31, | Consolidated Statements of Cash Flows: | Effect of | adoption of | As previously | reported | (Dollars in thousands) | CASH FLOWS FROM OPERATING ACTIVITIES: | Change in other assets and liabilities, net | Net cash provided by (used in) operating activities | CASH FLOWS FROM FINANCING ACTIVITIES: | Cost of shares withheld for taxes on settlements of | share-based compensation awards | Net cash provided by (used in) financing activities | At December 31, | (Dollars in thousands) | The Prudential Insurance Company of America | Unaffiliated life insurance company |


Operating cash flow from continuing operations for 2017 was $2.7 billion, a $191 million, or 8 percent increase compared with 2016, reflecting higher earnings and favorable changes in working capital.
Operating cash flow from continuing operations of $2.5 billion in 2016 was a 23 percent increase compared to $2.0 billion in 2015, as comparisons benefited from income taxes of $424 million paid on the gains from divestitures in 2015.
At September 30, 2017, operating working capital as a percent of sales increased to 6.6 percent due to higher levels of working capital in the acquired valves & controls business, compared with 5.2 percent and 7.2 percent in 2016 and 2015, respectively.
Operating cash flow from continuing operations funded capital expenditures of $476 million, dividends of $1,239 million, common stock purchases of $400 million, and was also used to partially pay down debt in 2017.
Proceeds of $5.1 billion from the sales of the network power systems and power generation, motors and drives businesses funded acquisitions of $2,990 million, cash used for discontinued operations of $778 million and repayments of short-term borrowings and long-term debt of approximately $1.3 billion.
Contributions to pension plans were $45 million in 2017, $66 million in 2016 and $53 million in 2015.
Capital expenditures related to continuing operations were $476 million, $447 million and $588 million in 2017, 2016 and 2015, respectively.
Free cash flow from continuing operations (operating cash flow less capital expenditures) was $2.2 billion in 2017, up 8 percent.
Free cash flow was $2.1 billion in 2016, compared with $1.5 billion in 2015.
The Company is targeting capital spending of approximately $550 million in 2018.
Net cash paid in connection with acquisitions was $2,990 million, $132 million and $324 million in 2017, 2016 and 2015, respectively.
Proceeds from divestitures not classified as discontinued operations were $39 million in 2017 and $1,812 million in 2015.
Dividends were $1,239 million ($1.92 per share) in 2017, compared with $1,227 million ($1.90 per share) in 2016 and $1,269 million ($1.88 per share) in 2015.
In November 2017, the Board of Directors voted to increase the quarterly cash dividend 1 percent, to an annualized rate of $1.94 per share.
Purchases of Emerson common stock totaled $400 million, $601 million and $2,487 million in 2017, 2016 and 2015, respectively, at average per share prices of $60.51, $48.11 and $57.68.
The Board of Directors authorized the purchase of up to 70 million common shares in November 2015, and 56.9 million shares remain available for purchase under this authorization.
The Company purchased 6.6 million shares in 2017 under the November 2015 authorization.
In 2016, the Company purchased 12.5 million shares under a combination of the November 2015 authorization and the remainder of the May 2013 authorization.
A total of 43.1 million shares were purchased in 2015 under the May 2013 authorization.


| Cash, net of cash acquired $1,735 | Fair value of contingent consideration | $1,798 | Goodwill | Amortizable intangible assets | Indefinite-lived intangible assets | Inventory | Property, plant and equipment | Other net assets | Deferred income taxes | $1,798 | AmountAssigned(in millions) | Amortizable intangible assets: | Technology-related | Customer relationships | Other intangible assets | Indefinite-lived intangible assets: | In-process research & development | $1,080 |


On October 16, 2014, the parent company established a $5.0 billion commercial paper program to provide additional liquidity.
As of December 31, 2014, there were no issuances outstanding under this program.
Following the establishment of this parent company program, PNC Funding Corp terminated its $3.0 billion commercial paper program.
Note 17 Equity in the Notes To Consolidated Financial Statements in Item 8 of this Report describes the 16,885,192 warrants outstanding, each to purchase one share of PNC common stock at an exercise price of $67.33 per share.
These warrants were sold by the U. S.  Treasury in a secondary public offering in May 2010 after the U. S.  Treasury exchanged its TARP Warrant.
These warrants will expire December 31, 2018, and are considered in the calculation of diluted earnings per common share in Note 16 Earnings Per Share in the Notes To Consolidated Financial Statements in Item 8 of this Report.
Status of Credit Ratings The cost and availability of short-term and long-term funding, as well as collateral requirements for certain derivative instruments, is influenced by PNCs debt ratings.
In general, rating agencies base their ratings on many quantitative and qualitative factors, including capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current legislative and regulatory environment, including implied government support.


Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) As part of the purchase price allocation, all intangible assets that were a part of the acquisition were identified and valued.
It was determined that only customer relationship, trade name, developed technology and know how and in-process research and development had separately identifiable values.
Customer relationship represents Suros large installed base that are expected to purchase disposable products on a regular basis.
Trade name represents the Suros product names that the Company intends to continue to use.
Developed technology and know how represents currently marketable purchased products that the Company continues to resell as well as utilize to enhance and incorporate into the Companys existing products.
The estimated $4,900 of purchase price allocated to in-process research and development projects primarily related to Suros disposable products.
The projects were at various stages of completion and include next generation handpiece and site marker technologies.
The Company has continued to work on these projects and they are substantially complete as of September 27, 2008.
The deferred income tax liability relates to the tax effect of acquired identifiable intangible assets, and fair value adjustments to acquired inventory as such amounts are not deductible for tax purposes, partially offset by acquired net operating loss carry forwards that the Company believes are realizable.
For all of the acquisitions discussed above, goodwill represents the excess of the purchase price over the net identifiable tangible and intangible assets acquired.
The Company determined that the acquisition of each AEG, BioLucent, R2 and Suros resulted in the recognition of goodwill primarily because of synergies unique to the Company and the strength of its acquired workforce.


Financing Activities Our cash flows from financing activities reflect issuances and repayments of debt, proceeds from stock issuances related to our equity incentive programs and repurchases of common stock pursuant to our authorized repurchase programs, discussed in Note L—Stockholders’ Equity to our 2012 consolidated financial statements included in Item 8 of this Annual Report.
Additionally, our financing activities included $146 million of contingent payments primarily associated with the achievement of receiving FDA approval of the S-ICD? system in September 2012.
Debt We had total debt of $4.256 billion as of December 31, 2012 and $4.261 billion as of December 31, 2011.
The debt maturity schedule for the significant components of our debt obligations as of December 31, 2012 is as follows:


Revenue from training, support and other services is recognized as the services are performed.
The Company applies the specific performance method to contracts in which the service consists of a single act, such as providing a training class to a customer, and the proportional performance method to other service contracts that are longer in duration and often include multiple acts (for example, both training and consulting).
In applying the proportional performance method, the Company typically utilizes output-based estimates for services with contractual billing arrangements that are not based on time and materials, and estimates output based on the total tasks completed as compared to the total tasks required for each work contract.
Input-based estimates are utilized for services that involve general consultations with contractual billing arrangements based on time and materials, utilizing direct labor as the input measure.
The Company also executes arrangements through independent channel partners in which the channel partners are authorized to market and distribute the Company’s software products to end end-users of the Company’s products and services in specified territories.
In sales facilitated by channel partners, the channel partner bears the risk of collection from the end-user customer.
The Company recognizes revenue from transactions with channel partners when the channel partner submits a written purchase commitment, collectibility from the channel partner is probable, a signed license agreement is received from the end-user customer and delivery has occurred, provided that all other revenue recognition criteria are satisfied.
Revenue from channel partner transactions is the amount remitted to the Company by the channel partners.
This amount includes a fee for PCS that is compensation for providing technical enhancements and the second level of technical support to the end-user, which is based on the rate charged for PCS when sold separately, and is recognized over the period that PCS is to be provided.
The Company does not offer right of return, product rotation or price protection to any of its channel partners.
Non-income related taxes collected from customers and remitted to governmental authorities are recorded on the consolidated balance sheet as accounts receivable and accrued expenses.
The collection and payment of these amounts are reported on a net basis in the consolidated statements of income and do not impact reported revenues or expenses.
The Company warrants to its customers that its software will substantially perform as specified in the Company’s most current user manuals.
The Company has not experienced significant claims related to software warranties beyond the scope of maintenance support, which the Company is already obligated to provide, and consequently the Company has not established reserves for warranty obligations.
CASH AND CASH EQUIVALENTS: Cash and cash equivalents consist primarily of highly liquid investments such as deposits held at major banks and money market mutual funds with original maturities of three months or less.
Cash equivalents are carried at cost, which approximates fair value.
The Company’s cash and cash equivalents balances comprise the following:


| Prudential Insurance PALAC | In millions and presented as of or for the year ended | Statutory net income (loss) | Statutory capital and surplus | As of December 31, | 2018 | (in millions) | U.S. GAAP liability (including non-performance risk) | Non-performance risk adjustment | Subtotal | Adjustments including risk margins and valuation methodology differences | Economic liability managed through the ALM strategy | Year ended December 31, | 2018 | (in millions) | Annualized new business premiums: | On an actual exchange rate basis: | Life Planner operations | Gibraltar Life-1 | Total-1 | On a constant exchange rate basis: | Life Planner operations | Gibraltar Life-1 | Total-1 | Year Ended December 31, 2018 | Life | (in millions) | Life Planner | Gibraltar Life-2: | Life Consultants | Banks | Independent Agency | Subtotal-2 | Total |


The Company had $7,364 million and $6,675 million of cumulative earnings at December 31, 2014 and December 31, 2013, respectively, attributable to foreign subsidiaries for which no U. S.  provision has been recorded for income tax that could occur upon repatriation.
Accordingly, $841 million and $736 million of deferred tax liabilities were not recorded with respect to these earnings at December 31, 2014 and December 31, 2013, respectively.
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse.
Significant components of the Company’s deferred tax assets and liabilities at December 31, 2014 and December 31, 2013 were as follows:


Derivatives Not Designated As Hedging Instruments under GAAP Residential mortgage loans that will be sold in the secondary market, and the related loan commitments, which are considered derivatives, are accounted for at fair value.
Changes in the fair value of the loans and commitments due to interest rate risk are hedged with forward contracts to sell mortgage-backed securities, as well as U. S.  Treasury and Eurodollar futures and options.
Gains and losses on the loans and commitments held for sale and the derivatives used to economically hedge them are included in Residential mortgage noninterest income on the Consolidated Income Statement.
Residential mortgage servicing rights are accounted for at fair value with changes in fair value influenced primarily by changes in interest rates.
Derivatives used to hedge the fair value of residential mortgage servicing rights include interest rate futures, swaps, options, and forward contracts to purchase mortgage-backed securities.
Gains and losses on residential mortgage servicing rights and the related derivatives used for hedging are included in Residential mortgage noninterest income.
Commercial mortgage loans held for sale and the related loan commitments, which are considered derivatives, are accounted for at fair value.
Derivatives used to economically hedge these loans and commitments from changes in fair value due to interest rate risk and credit risk include forward loan sale contracts, interest rate swaps, and credit default swaps.
Gains and losses on the commitments, loans and derivatives are included in Other noninterest income.
Derivatives used to economically hedge the change in value of commercial mortgage servicing rights include interest rate futures, swaps
In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products.
Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates, and interest-only loans, among others.
We originate interest-only loans to commercial borrowers.
Such credit arrangements are usually designed to match borrower cash flow expectations (e. g. , working capital lines, revolvers).
These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due.
We do not believe that these product features create a concentration of credit risk.
At December 31, 2017, we pledged $18.7 billion of commercial loans to the Federal Reserve Bank (FRB) and $62.8 billion of residential real estate and other loans to the Federal Home Loan Bank (FHLB) as collateral for the ability to borrow, if necessary.


| Year ended December 31 - dollars in millions 2008 2007 2006 2005 2004 | Allowance for loan and lease losses – January 1 | Charge-offs | Commercial | Commercial real estate | Equipment lease financing | Consumer | Residential real estate | Total charge-offs | Recoveries | Commercial (a) | Commercial real estate | Equipment lease financing | Consumer | Residential real estate | Total recoveries | Net charge-offs (a) | Provision for credit losses (b) | Acquired allowance – National City | Acquired allowance – other | Net change in allowance for unfunded loan commitments and letters of credit | Allowance for loan and lease losses – December 31 | Allowance as a percent of December 31: | Loans | Nonperforming loans | As a percent of average loans | Net charge-offs (a) | Provision for credit losses | Allowance for loan and lease losses | Allowance as a multiple of net charge-offs (a) |


| Location Title Size (Sq. Ft.) Use | Houston, TX | Canonsburg, PA | Warwick, U.K. | Sydney, Australia |


| U.S. plans 2008 Non-U.S. plans | In millions of dollars | Pension (benefit) | expense-1 | Company | contributions-2 |


| Year Ended December 31, | 2015 | (In millions) | Other associated costs | Restructuring charges | Total |


Bristol-Myers Squibb 8 RESULTS OF OPERATIONS The following discussions of the Companys results of continuing operations exclude the results related to the Oncology Therapeutics Network (OTN) business, which were previously presented as a separate segment prior to its divestiture in 2005, and have been segregated from continuing operations and reflected as discontinued operations for all periods presented.
See  Discontinued Operations below.
The Companys results of operations were as follows:


| (Millions) 2010 2009 | €650 million revolving credit facility, 0.8% as of Dec. 31, 2009 | Other, weighted average 3.39% as of Dec. 31, 2010 and 2.2% as of December 31, 2009 | Total |


| December 31, 2007 December 31, 2006 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Commercial loans by region: | U.S. Regions: | Pacific | South Atlantic | Middle Atlantic | East North Central | West South Central | Mountain | New England | West North Central | East South Central | Subtotal—U.S. | Asia | Other | Total Commercial Loans | December 31, 2007 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Commercial loans by property type: | Industrial buildings | Office buildings | Apartment complexes | Other | Retail stores | Agricultural properties | Residential properties | Subtotal of collateralized loans | Uncollateralized loans | Total Commercial Loans | December 31, 2007 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Maturing in 2008 | Maturing in 2009 | Maturing in 2010 | Maturing in 2011 | Maturing in 2012 | Maturing in 2013 | Maturing in 2014 | Maturing in 2015 | Maturing in 2016 | Maturing in 2017 and beyond | Total Commercial Loans | (In millions) | Fair value | Amortized cost | Net unrealized loss, pre-tax | Net unrealized loss, after-tax |


As of December 31, 2015 and 2014, the Company had unsecured term loans outstanding of $225.0 million at an average interest rate of 2.4%.
These loans are included in the line ‘‘Term loan-variable rate’’ in the table above, and as of December 31, 2015 and 2014, the carrying value net of debt issuance costs was $224.5 million and $224.1 million, respectively.
The term loans are at a variable interest rate of LIBOR plus 1.05%.
The Company entered into interest rate swap contracts for a term of five years with a notional amount totaling $225.0 million, which effectively converted the interest rate on $225.0 million of the term loans to a fixed rate of 2.4%.
The $200 million tranche of this unsecured term loan has a maturity date of November 2016 and the $25 million tranche has a maturity date of August 2017.
In March 2015, the Company issued $500.0 million of senior unsecured notes due on April 1, 2025 with a coupon rate of 3.5% per annum and are payable on April 1st and October 1st of each year, beginning October 1, 2015 (the 2025 Notes).
The 2025 Notes were offered to investors at a price of 99.747% of par value.


| 2005 2004 | ($ in millions) | Operating income (loss) | Gains and other income (expense) | Interest income, provision for loan losses and interest expense | Equity in earnings (losses) | Income (loss) before income taxes and minority interest | Tax (provision) benefit | Tax credits | Total tax (provision) benefit | Income from continuing operations before minority interest | Minority interest | Income from continuing operations |


| December 31 | 2013 | (Dollars in millions) | Allowance for loan and lease losses | Residential mortgage | Home equity | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | U.S. commercial-1 | Commercial real estate | Commercial lease financing | Non-U.S. commercial | Total commercial-2 | Allowance for loan and lease losses | Reserve for unfunded lending commitments | Allowance for credit losses-3 |


| As of December 31, | 2014 | (Dollars in thousands) | BALANCE SHEET DATA: | Cash and cash equivalents | Total assets | Long-term debt, including current portion | Notes payable on real estate -4 | Total liabilities | Total CBRE Group, Inc. stockholders’ equity |


Litigation OnMay 14, 1999, PCA was named as a defendant in two Consolidated Class Action Complaints whichalleged a civil violation of Section 1 of the Sherman Act.
The suits, then captioned Winoff Industries, Inc.  v.  Stone Container Corporation, MDL No.1261 (E. D.  Pa. ) and General Refractories Co.  v.  Gaylord ContainerCorporation, MDL No.1261 (E. D.  Pa. ), name PCA as a defendant based solely on the allegation that PCA is successor to the interests of Tenneco Packaging Inc.  and Tenneco Inc. , both of which were alsonamed as defendants inthe suits, along withnine other linerboard and corrugated sheet manufacturers.
The complaints allege that the defendants, during the period October 1, 1993 through November 30, 1995, conspired to limit the supply of linerboard, and that the purpose and effect of the alleged conspiracy was to artificially increase prices of corrugated containers and corrugated sheets, respectively.
On November 3, 2003, Pactiv (formerly known as Tenneco Packaging), Tenneco and PCA entered into an agreement to settle the class action lawsuits.
The settlement agreement provided for a full release of all claims against PCA as a result of the class action lawsuits and was approved by the Court in an opinion issued on April 21, 2004.
Approximately 160 plaintiffs opted out of the class and together filed about ten direct action complaints in various federal courts across the country.
All of the opt-out complaints make allegations against the defendants, including PCA, substantially similar to those made in the class actions.
The settlement agreement does not cover these direct action cases.
These actions have almost all been consolidated as In reLinerboard, MDL 1261 (E. D.  Pa. ) for pretrial purposes.
Pactiv, Tenneco and PCA have reached an agreement to settle all of the opt-out cases.
These agreements provide for a full release of all claims against PCA as a result of litigation.
PCA has made no payments to the plaintiffs as a result of the settlement of any of the opt-out suits.
As of the date of this filing, we believe it is not reasonably possible that the outcome of any pending litigation related to these matters will have a material adverse effect on our financial position, results ofoperations or cash flows.
PCA is also party to various legal actions arising in the ordinary course of business.
These legal actionscover a broad variety of claims spanning our entire business.
As of the date of this filing, we believe it is


| Year Ended December 31 2013 2012 2011 | (In millions) | Fixed maturity securities | Short term investments | Limited partnership investments | Equity securities | Trading portfolio | Other | Gross investment income | Investment expense | Net investment income |


| 2016 | (in millions) | U.S. Treasury securities | U.S. government agency securities |


| Years Ended December 31, Percentage Change | (in millions) | Revenues: | Premiums | Policy fees | Net investment income | Advisory fee and other income | Benefits and expenses: | Policyholder benefits and losses incurred | Interest credited to policyholder account balances | Amortization of deferred policy acquisition costs | Non deferrable insurance commissions | Advisory fee expenses | General operating expenses | Pre-tax operating income | 2008 | Loss and loss expense ratio, as reported | Catastrophe losses | Prior period development | Loss and loss expense ratio, adjusted |


| Payments Due by December 31, | Contractual ObligationsMillions | Debt [a] | Operating leases [b] | Capital lease obligations [c] | Purchase obligations [d] | Other post retirement benefits [e] | Income tax contingencies [f] | Total contractualobligations |


| Options Number of Shares (in millions) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value   (in millions) | Outstanding at July 1, 2005 | Granted | Assumed from Maxtor | Exercised | Forfeitures and cancellations | Outstanding at June 30, 2006 | Vested and expected to vest at June 30, 2006 | Exercisable at June 30, 2006 |


| December 31, | (in millions) | Commercial | Commercial real estate | Leases | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others-1 | Home equity lines of credit serviced by others-1 | Automobile | Student | Credit cards | Other retail | Total retail | Total loans and leases-2 (3) |


| Balance as of January 1, 2006 $751 | Additions charged to cost of revenue | Repairs and replacements | Balance as of December 31, 2006 | Additions charged to cost of revenue | Repairs and replacements | Balance as of December 30, 2007 | Additions charged to cost of revenue | Repairs and replacements | Balance as of December 28, 2008 |


| Year ended December 31, | 2006 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments(1) | Related charges-2 | Investment gains (losses) on trading account assets supporting insurance liabilities, net(3) | Change in experience-rated contractholder liabilities due to asset value changes-4 | Income from continuing operations before income taxes, equity in earnings of operating joint ventures, extraordinary gain on acquisition andcumulative effect of accounting change |


For the Year Ended December 31, 2016


| Secured Capital Leases Unsecured Total | (In thousands) | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 and thereafter-2 | $311,073 |


Fair Value Measurements We report certain assets and liabilities at fair value; specifically, separate account assets, derivatives, embedded derivatives, properties held by our consolidated property funds, and most investments and cash equivalents.
Fair value assumes the exchange of assets or liabilities occurs in orderly transactions and is not the result of a forced liquidation or distressed sale.
We include actual market prices, or observable inputs, in our fair value measurements to the extent available.
Broker quotes are obtained when quotes from pricing services are not available.
We validate prices obtained from third parties through a variety of means such as: price variance analysis, subsequent sales testing, stale price review, price comparison across pricing vendors and due diligence reviews of vendors.
See Note 14 to the Consolidated Financial Statements for additional information on our fair value measurements.
Non-Agency Residential Mortgage Backed Securities Backed by Sub-prime, Alt-A or Prime Collateral Sub-prime mortgage lending is the origination of residential mortgage loans to customers with weak credit profiles.
Alt-A mortgage lending is the origination of residential mortgage loans to customers who have credit ratings above sub-prime but may not conform to government-sponsored standards.
Prime mortgage lending is the origination of residential mortgage loans to customers with good credit profiles.
We have exposure to each of these types of loans predominantly through mortgage backed securities.
The slowdown in the U. S.  housing market, combined with relaxed underwriting standards by some originators, has led to higher delinquency and loss rates for some of these investments.
As a part of our risk management process, an internal rating system is used in conjunction with market data as the basis of analysis to assess the likelihood that we will not receive all contractual principal and interest payments for these investments.
For the investments that are more at risk for impairment, we perform our own assessment of projected cash flows incorporating


| In millions 2006 2005 2004 | Sales | Operating Profit |


| December 31, 2008 Percentage of Total December 31, 2007 Percentage of Total | (dollars in thousands) | IBNR | Reported claims in process | Other benefits payable | Benefits payable, excluding military services | Military services benefits payable | Total benefits payable |


(5) Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount and expense and the portion of rent expense representing an interest factor.
(6) Prior period balances reflect adjustments related to redeemable noncontrolling interests.
See Note 2 of the consolidated financial statements for further discussion.
ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements Certain statements in this section or elsewhere in this report may be deemed “forward-looking statements”.
See “Item 1A.
Risk Factors” in this report for important information regarding these forward-looking statements and certain risk and uncertainties that may affect us.
The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing in “Item 8.
Financial Statements and Supplementary Data” of this report.
Overview We are an equity real estate investment trust (“REIT”) specializing in the ownership, management, and redevelopment of high quality retail and mixed-use properties located primarily in densely populated and affluent communities in strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California.
As of December 31, 2011, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 87 predominantly retail real estate projects comprising approximately 19.3 million square feet.
In total, the real estate projects were 93.4% leased and 92.4% occupied at December 31, 2011.
A joint venture in which we own a 30% interest owned seven retail real estate projects totaling approximately 1.0 million square feet as of December 31, 2011.
In total, the joint venture properties in which we own a 30% interest were 90.9% leased and occupied at December 31, 2011.
We have paid quarterly dividends to our shareholders continuously since our founding in 1962 and have increased our dividends per common share for 44 consecutive years.
Critical Accounting Policies The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP”, requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses.
These estimates are prepared using management’s best judgment, after considering past and current events and economic conditions.
In addition, information relied upon by management in preparing such estimates includes internally generated financial and operating information, external market information, when available, and when necessary, information obtained from consultations with third party experts.
Actual results could differ from these estimates.
A discussion of possible risks which may affect these estimates is included in “Item 1A.
Risk Factors” of this report.
Management considers an accounting estimate to be


All shares acquired under the ASR agreements were recorded as treasury stock.
During their respective open periods in 2017 and 2016, neither of the ASRs was dilutive to the Company’s earnings per share calculations, nor did they trigger the two-class earnings per share methodology.
Additionally, the unsettled portion of ASRs during their respective open periods met the criteria to be accounted for as a forward contract indexed to the Company’s stock and qualified as equity transactions.
The initial delivery of shares, as well as the additional receipt of shares at settlement resulted in a reduction to the Company’s common stock outstanding used to calculate earnings per share.
Share Repurchases During 2017, the Company reacquired 4,707,629 shares of its common stock, of which 4,414,416 related to share repurchases through open market or private purchases, including the February 2017 ASR discussed above, and 293,213 related to shares withheld for taxes on exercise of stock options and the vesting of stock awards and units.
During 2016, the Company reacquired 6,483,198 shares of its common stock, of which 6,126,033 related to share repurchases through open market or private purchases, including the February 2016 ASR discussed above, and 357,165 related to shares withheld for taxes on exercise of stock options and the vesting of stock awards and units.11.


| Balance as of December 31, 2009 Balance as of December 31, 2008 Net change | (in millions) | Assets | Total fixed maturities, available-for-sale | Fixed maturities, trading | Equity securities, available-for-sale | Derivative assets | Separate account assets | Liabilities | Investment-type insurance contracts | Derivative liabilities | Other liabilities | Net total |


| Calendar Year 1st-1 2nd-1 3rd 4th Year | 2011 | Net sales | Gross margin | Income (loss) from continuing operations | Income (loss) from discontinued operations | Net income (loss) | Earnings per share: | Basic | Income (loss) from continuing operations | Income (loss) from discontinued operations | Net income (loss) | Diluted | Income (loss) from continuing operations | Income (loss) from discontinued operations | Net income (loss) | 2010-1 | Net sales | Gross margin | Income from continuing operations | Income from discontinued operations | Net income | Earnings per share: | Basic | Income from continuing operations | Income from discontinued operations | Net income | Diluted | Income from continuing operations | Income from discontinued operations | Net income |