Note 3 – Acquisition and Divestitures Consolidation of AWE Management Limited On August 24, 2016, we increased our ownership interest in the AWE joint venture, which operates the United Kingdom’s nuclear deterrent program, from 33% to 51%.
Consequently, we began consolidating AWE and our operating results include 100% of AWE’s sales and 51% of its operating profit.
Prior to increasing our ownership interest, we accounted for our investment in AWE using the equity method of accounting.
Under the equity method, we recognized only 33% of AWE’s earnings or losses and no sales.
Accordingly, prior to August 24, 2016, the date we obtained control, we recorded 33% of AWE’s net earnings in our operating results and subsequent to August 24, 2016, we recognized 100% of AWE’s sales and 51% of its operating profit.
We accounted for this transaction as a “step acquisition” (as defined by U. S.  GAAP), which requires us to consolidate and record the assets and liabilities of AWE at fair value.
Accordingly, we recorded intangible assets of $243 million related to customer relationships, $32 million of net liabilities, and noncontrolling interests of $107 million.
The intangible assets are being amortized over a period of eight years in accordance with the underlying pattern of economic benefit reflected by the future net cash flows.
In 2016, we recognized a non-cash net gain of $104 million associated with obtaining a controlling interest in AWE, which consisted of a $127 million pretax gain recognized in the operating results of our Space business segment and $23 million of tax-related items at our corporate office.
The gain represented the fair value of our 51% interest in AWE, less the carrying value of our previously held investment in AWE and deferred taxes.
The gain was recorded in other income, net on our consolidated statements of earnings.
The fair value of AWE (including the intangible assets), our controlling interest, and the noncontrolling interests were determined using the income approach.


| December 31, 2011 | Required Net Capital | E*TRADE Clearing LLC-1 | E*TRADE Securities LLC-1 | E*TRADE Capital Markets, LLC-2 | International broker-dealers | Total |


| Rating agency Outlook Long-term issuer/senior debt rating Subordinated debt rating | S&P | Moody’s | Fitch | DBRS | Kroll |


| 2010 2009 2008 | Loss and loss expense ratio, as reported | Catastrophe losses and related reinstatement premiums | Prior period development | Large assumed loss portfolio transfers | Loss and loss expense ratio, adjusted |


| Year ended December 31,(a) 2004 2003 2002 | Statutory U.S. federal tax rate | Increase (decrease) in tax rate resulting from: | U.S. state and local income taxes, net offederal income tax benefit | Tax-exempt income | Non-U.S. subsidiary earnings | Business tax credits | Other, net | Effective tax rate |


Provision for credit losses The managed provision for credit losses includes amounts related to credit card securitizations.
For the year ended December 31, 2008, the increase in the provision for credit losses was due to year-over-year increase in the allowance for credit losses largely related to the home equity, subprime mortgage, prime mortgage and credit card loan portfolios in the consumer businesses as well as in the allowance for credit losses related to the wholesale portfolio.
The increase in the allowance for credit losses related to the wholesale provision for loan losses from the prior year was due to the weakening credit environment, loan growth and the transfer of $4.9 billion of funded and unfunded leveraged lending commitments to retained loans from held-for-sale.
The decrease in provision for lending-related commitments from the prior year benefited from reduced balances of lending-related commitments.


Net Investment Income Net investment income increased by $2,326 million, or 16%, to $17,082 million for the year ended December 31, 2006 from $14,756 million for the comparable 2005 period.
Excluding the impact of the acquisition of Travelers, which contributed $1,425 million during the first six months of 2006 to the year over year increase, net investment income increased by $901 million of which management attributes $648 million to growth in the average asset base and $253 million to an increase in yields.
This increase was primarily due to an overall increase in the asset base, an increase in fixed maturity security yields, improved results on real estate and real estate joint ventures, mortgage loans, and other limited partnership interests, as well as higher short-term interest rates on cash equivalents and shortterm investments.
These increases were partially offset by a decline in investment income from securities lending results, and bond and commercial mortgage prepayment fees.


| (Millions of Dollars) 2004 2003 Increase/ (Decrease) | Property taxes | State and local taxes related to revenue receipts | Payroll taxes | Other taxes | Total |


| Amount of Commitment Expiration by Period | Commercial Commitments | Letters of credit and guarantees* |


| Fair   Value Weighted-   Average   Prepayment   Speed Weighted-   Average   Discount   Rate Annual   Expected   Credit   Defaults | (Dollars in thousands) | Retained subordinated interests: | As of securitization date | As of December 31, 2007 | Impact on fair value of 10% adverse change | Impact on fair value of 20% adverse change |


| Quarter Ended | March 31, 2007 | (Thousands of Dollars, except per share amounts) | Operating revenues | Operating income | Income from continuing operations | Discontinued operations — income (loss) | Net income | Earnings available to common shareholders | Earnings per share total — basic | Earnings per share total — diluted |


worlds most advanced surface combatants.
In 2006, the group delivered USS Farragut and USS Gridley, the companys 26th and 27th ships of the class.
Seven more ships are scheduled to be delivered between 2007 and 2011.
As the DDG-51 program winds down, the Navy and industry are transitioning to the next-generation guided-missile destroyer, the DDG-1000 Zumwalt Class, formerly known as DD(X).
The company has one of two contracts for the detail design of this multi-mission destroyer under a dual-lead-ship strategy, which, as directed by Congress, stipulates that the vessels be procured from two separate shipyards.
The company expects to receive a DDG-1000 construction contract in 2007.
Marine Systems leads one of two industry teams awarded competitive contracts for the design and construction of a new type of surface warship designated a Littoral Combat Ship (LCS).
As a key element of the Navys plan to maintain a sizeable fleet and address emerging maritime threats, the high-speed, multi-mission LCS platform is intended for defense against terrorist swarm boats, mines and submarine threats in coastal areas.
Marine Systems LCS design is derived from a proven commercial trimaran.
Its first ship is now under construction at a teammates Alabama facility and is scheduled to be launched in 2007.
The U. S.  Navy continues to assess the requirements for future LCS construction.
The group designed and produces the Lewis and Clark-class (T-AKE) dry cargo/ammunition combat-logistics ship.
This ship is the Navys first new combat-logistics ship design in almost 20 years, and it maximizes the Navys operational flexibility and endurance by transforming at-sea replenishment.
T-AKE enables efficient cargo transfer in port and at sea, and is the first modern Navy ship to incorporate proven commercial marine technologies, such as integrated electric-drive propulsion.
These technologies are designed to minimize T-AKE operations and maintenance costs over an expected 40-year life.
T-AKE ships support the Navys Sea Base vision by delivering ammunition, food, fuel, parts and other supplies to U. S.  and NATO forces around the world, and to Navy ships operating at sea.
The group delivered the lead ship, USNS Lewis and Clark, in June 2006.
The group designs and produces commercial ships to meet Jones Act requirements that U. S. -built ships be used to transport commercial goods between U. S.  ports.
In August, the group signed a contract with U. S.  Shipping Partners to build nine product carrier ships, with options for five additional ships.
The product carriers are based on a design the company obtained through an agreement with a subsidiary of Daewoo Shipbuilding and Marine Engineering (DSME).
The partnership allows the group to offer proven containerships, tankers, bulk carriers and other designs to Jones Act customers.
Construction of the first ship is scheduled to begin in 2007, with delivery expected in 2009.
This new work builds on the groups experience with the design and construction of double-hull oil tankers.
In August 2006, the group delivered the last of four double-hull tankers to BP Shipping Ltd. , two weeks ahead of schedule.
In addition, the Marine Systems group provides comprehensive ship and submarine repair support services to the Navy and commercial customers in a variety of locations worldwide.
Internationally, the group provides key allies with program management, planning and design support for submarine and surface-ship construction programs.
In partnership with the Navy and local governments, the group continues to invest in its shipyards to remain competitive and improve operating margins.
The groups three shipyards were recognized as world-class facilities in 2006, exceeding the U. S.  and international averages in numerous areas of shipyard technology based on analysis by independent international shipbuilding consultants commissioned by the Department of Defense.
Net sales for the Marine Systems group were 21 percent of the companys consolidated net sales in 2006, 23 percent in 2005 and 25 percent in 2004.
Net sales by major products and services were as follows:


| 2014 Payments (Receipts) (In Millions) | Entergy Gulf States Louisiana | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas |


| Year ended December 31, | Non-GAAP core operating efficiency ratio (Dollars in thousands, except ratios) | GAAP noninterest expense | GAAP net interest income | GAAP noninterest income | Less: gains on investment securities, net | Less: net gains on equity warrant assets | Non-GAAP noninterest income, net of gains on investment securities and equity warrant assets | GAAP total revenue | Non-GAAP total revenue, net of gains on investment securities and equity warrant assets | GAAP operating efficiency ratio | Non-GAAP, core operating efficiency ratio -1 |


Contractual Obligations, Commitments and Contingencies The following table sets forth contractual obligations, commitments and contingencies by year of payment at December 31, 2014:


minimum death benefit guarantees, resulting in higher expected future gross profits.
The opposite result occurs when returns are lower than the Companys long-term expectation.
The Companys practice to determine the impact of gross profits resulting from returns on separate accounts assumes that long-term appreciation in equity markets is not changed by short-term market fluctuations, but is only changed when sustained interim deviations are expected.
The Company monitors these changes and only changes the assumption when its long-term expectation changes.
The effect of an increase/(decrease) by 100 basis points in the assumed future rate of return is reasonably likely to result in a decrease/(increase) in the DAC and VOBA balances of approximately $70 million for this factor.
The Company also reviews periodically other long-term assumptions underlying the projections of estimated gross margins and profits.
These include investment returns, policyholder dividend scales, interest crediting rates, mortality, persistency, and expenses to administer business.
Management annually updates assumptions used in the calculation of estimated gross margins and profits which may have significantly changed.
If the update of assumptions causes expected future gross margins and profits to increase, DAC and VOBA amortization will decrease, resulting in a current period increase to earnings.
The opposite result occurs when the assumption update causes expected future gross margins and profits to decrease.
Over the past two years, the Companys most significant assumption updates resulting in a change to expected future gross margins and profits and the amortization of DAC and VOBA have been updated due to revisions to expected future investment returns, expenses, in-force or persistency assumptions and policyholder dividends on contracts included within the Individual Business segment.
The Company expects these assumptions to be the ones most reasonably likely to cause significant changes in the future.
Changes in these assumptions can be offsetting and the Company is unable to predict their movement or offsetting impact over time.
The following chart illustrates the effect on DAC and VOBA within the Companys Individual segment of changing each of the respective assumptions during the years ended December 31, 2006 and 2005:


| Amount (In Thousands) | 2016 | 2017 | 2018 | 2019 | 2020 | Years thereafter | Total | Less: Amount representing interest | Present value of net minimum lease payments |


monitor an entity’s solvency.
This calculation indicates recommended minimum levels of required capital and surplus and signals regulatory measures should actual surplus fall below these recommended levels.
If RBC were adopted by all states at December 31, 2004, each of our subsidiaries would be in compliance and we would have $405.6 million of aggregate capital and surplus above any of the levels that require corrective action under RBC.
Contractual Obligations We are contractually obligated to make payments for years subsequent to December 31, 2004 as follows:


| Years ended December 31, | Cash Flow Data | Net income, adjusted to reconcile net income to net cashprovided by operating activities1 | Net cash used in working capital ² | Changes in other non-current assets and liabilities using cash | Net cash provided by operating activities | Net cash used in investing activities | Net cash (used in) provided by financing activities |


| Derivatives in Fair Value Hedging Relationships Hedged Items in Fair Value Hedging Relationships Net Derivative Gains (Losses) Recognized for Derivatives Net Derivative Gains (Losses) Recognized for Hedged Items Ineffectiveness Recognized in Net Derivative Gains (Losses) | (In millions) | For the Year Ended December 31, 2011: | Interest rate swaps: | PABs -1 | Foreign currency swaps: | Foreign-denominated PABs -2 | Foreign currencyforwards: | Total | For the Year Ended December 31, 2010: | Interest rate swaps: | PABs -1 | Foreign currency swaps: | Foreign-denominated PABs -2 | Foreign currencyforwards: | Total | For the Year Ended December 31, 2009: | Interest rate swaps: | PABs -1 | Foreign currency swaps: | Foreign-denominated PABs -2 | Foreign currencyforwards: | Total |


| 1-Percentage Point | (millions) | Effect on total of service and interest cost components | Effect on postretirement benefit obligation |


| (in thousands) Total Level 1 Level 2 NAV | -1 Cash and cash equivalents | -2 Fixed income securities | Domestic equity securities | Rollins, Inc. stock | Other securities | -3 International equity securities | -4 Real estate | -5 Alternative/opportunistic/special | Total | (in thousands) | -1 Cash and cash equivalents | -2 Fixed income securities | Domestic equity securities | Rollins, Inc. stock | Other securities | -3 International equity securities | -4 Real estate | -5 Alternative/opportunistic/special | Total |


SEAGATE TECHNOLOGY AND ITS PREDECESSOR NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS(CONTINUED) The following table summarizes the Companys operations by geographic area:
(1) Revenue is attributed to countries based on the shipping location.
On November 22, 2000, under the stock purchase agreement, the Companys parent, New SAC completed the purchase of substantially all of the operating assets of, and assumption of the operating liabilities of, Seagate Delaware and its consolidated subsidiaries.
The total net purchase price paid by New SAC for all the businesses of Seagate Delaware, including Seagate Technology, was $1.840 billion in cash, including transaction costs of approximately $25 million.
Immediately thereafter, in a separate and independent transaction, Seagate Delaware and VERITAS completed their merger under the Merger Agreement.
At the time of the merger, Seagate Delawares assets included a specified amount of cash, an investment in VERITAS, and certain specified investments and liabilities.
In connection with the Merger Agreement, Seagate Delaware, VERITAS and New SAC entered into an Indemnification Agreement, pursuant to which these entities and certain other subsidiaries of Seagate Delaware agreed to certain indemnification provisions regarding tax and other matters that may arise in connection with the stock purchase agreement and Merger Agreement.
New SAC accounted for this transaction as a purchase in accordance with Accounting Principles Board, or APB, Opinion No.16, Business Combinations.
 All acquired tangible assets, identifiable intangible assets as well as assumed liabilities were valued based on their relative fair values and reorganized into the following businesses: (1) the rigid disc drive business, which is now the Company, which included the storage area networks business, (2) the removable storage solutions business, which is now Certance Holdings, a direct subsidiary of New SAC and an affiliate of the Company, (3) the software business, which is now Crystal Decisions, an indirect subsidiary of New SAC and an affiliate of the Company, and (4) an investment holding company, which is now STIH, a direct subsidiary of New SAC and an affiliate of the Company.
Each of Certance Holdings, Crystal Decisions and STIH are direct or indirect subsidiaries of New SAC and are not owned by the Company.
The fair value of the net assets exceeded the net purchase price by approximately $909 million.
Accordingly, the resultant negative goodwill was allocated on a pro rata basis to acquired long-lived assets of New SAC, primarily property, plant and equipment, and identified intangible assets, and reduced the recorded fair value amounts by approximately 46% for all the acquired businesses.
In accordance with Staff Accounting Bulletin No.73, Push Down Basis of Accounting, the Company has reflected its parent companys basis in the rigid disc drive and storage area networks operating businesses in the related balance sheet at the date of acquisition.


| December 31, 2012 | (In millions) | U.S. | Cash and cash equivalents | Equity securities: | Common stock(a) | Private equity | REIT | Investment trust | Mutual funds(b) | Pooled funds(c) | Fixed income securities: | U.S. treasury notes | Exchange traded funds | Corporate bonds(d) | Non-U.S. government bonds | Private placements | Taxable municipal bonds | Yankee bonds | Commingled fund(e) | Pooled funds(f) | Real estate(g) | Other | Total investments, at fair value |


| Year ended December 31, | (Dollars in thousands, except ratios) | Allowance for loan losses, beginning balance | Provision for loan losses | Gross loan charge-offs | Loan recoveries | Allowance for loan losses, ending balance | Provision as a percentage of period-end total gross loans | Gross loan charge-offs as a percentage of average total gross loans | Net loan (recoveries) charge-offs as a percentage of average total gross loans | Allowance for loan losses as a percentage of period-end total gross loans | Period-end total gross loans | Average total gross loans |


Commercial Mortgage and Other Loans The following table sets forth the composition of “Commercial mortgage and other loans,” as of the dates indicated:


| Gold Ounces Produced Costs Applicable to Sales-1 Depreciation and Amortization All-In Sustaining Costs-2 | 2018 | GOLD | Yanacocha | Merian-3 | Total / Weighted Average-4 | Yanacocha -48.65%(5) | Merian -25.00% | Attributable to Newmont |


Management and financial advice fees increased $27 million, or 3%, to $1.1 billion for the year ended December 31, 2009, due to strong hedge fund performance and net inflows, partially offset by a 22% decline in the daily average S&P 500 Index on a period-over-period basis, as well as the negative impact of foreign currency translation.
Total Asset Management account assets increased $43.6 billion, or 22%, compared to the prior year due to market appreciation, as well as net inflows in International managed assets and the positive impact of changes in foreign currency exchange rates.
Distribution fees decreased $31 million, or 13%, to $216 million for the year ended December 31, 2009, primarily due to lower 12b-1 fees driven by lower average assets.
Net investment income was $18 million for the year ended December 31, 2009 compared to net investment loss of $13 million in the prior year.
Operating net investment income, which excludes net realized gains or losses, was $21 million for the year ended December 31, 2009 compared to operating net investment loss of $14 million for the prior year primarily due to losses related to mark-to-market adjustments on seed money investments in 2008.
Other revenues decreased $25 million, or 76%, to $8 million for the year ended December 31, 2009, due to revenue from the sale of certain operating assets in 2008.
Expenses Total expenses increased $25 million, or 2%, to $1.3 billion for the year ended December 31, 2009, primarily due to an increase in general and administrative expense partially offset by a decrease in distribution expenses.
Distribution expenses decreased $46 million, or 11%, to $371 million for the year ended December 31, 2009, primarily due to lower average assets.
General and administrative expense increased $74 million, or 9%, to $894 million for the year ended December 31, 2009.
Integration charges were $30 million for the year ended December 31, 2009 compared to $5 million for the prior year.
Operating general and administrative expense, which excludes integration charges, increased $49 million, or 6%, to $864 million for the year ended December 31, 2009, primarily due to ongoing expenses from our acquisition of Seligman in the fourth quarter of 2008 and increases in hedge fund performance compensation, our performance compensation pool and legal expenses, partially offset by expense controls and a positive impact of foreign currency translation.
The positive impact of foreign currency translation on general and administrative expense partially offset the negative impact of foreign currency translation on management and financial advice fees.


| ($ in millions) 2010 2009 2008 | Net sales | Segment earnings | Gain on disposition(a) | Total segment earnings |


Counterparty Credit Risk Valuation Adjustments We record a counterparty credit risk valuation adjustment on certain derivative assets, including our credit default protection purchased, in order to properly reflect the credit quality of the counterparty.
These adjustments are necessary as the market quotes on derivatives do not fully reflect the credit risk of the counterparties to the derivative assets.
We consider collateral and legally enforceable master netting agreements that mitigate our credit exposure to each counterparty in determining the counterparty credit risk valuation adjustment.
All or a portion of these counterparty credit risk valuation adjustments are reversed or otherwise adjusted in future periods due to changes in the value of the derivative contract, collateral and creditworthiness of the counterparty During 2010 and 2009, credit valuation gains (losses) of $731 million and $3.1 billion ($(8) million and $1.7 billion, net of hedges) were recognized in trading account profits (losses) for counterparty credit risk related to derivative assets.
For additional information on gains or losses related to the counterparty credit risk on derivative assets, refer to Note 4  Derivatives to the Consolidated Financial Statements.
For information on our monoline counterparty credit risk, see the discussions beginning on pages 51 and 90, and for information on our CDO-related counterparty credit risk, see GBAM beginning on page 49.


| (Dollars in millions) 2011 2010 2009 | Price risk on mortgage banking production income-1, 2 | Interest rate risk on mortgage banking servicing income-1 | Credit risk on loans-3 | Interest rate and foreign currency risk on long-term debt and other foreign exchange transactions-4 | Other-5 | Total |


Valuation Adjustments on Derivatives The Corporation records credit risk valuation adjustments on derivatives in order to properly reflect the credit quality of the counterparties and its own credit quality.
The Corporation calculates valuation adjustments on derivatives based on a modeled expected exposure that incorporates current market risk factors.
The exposure also takes into consideration credit mitigants such as enforceable master netting agreements and collateral.
CDS spread data is used to estimate the default probabilities and severities that are applied to the exposures.
Where no observable credit default data is available for counterparties, the Corporation uses proxies and other market data to estimate default probabilities and severity.
Valuation adjustments on derivatives are affected by changes in market spreads, non-credit-related market factors such as interest rate and currency changes that affect the expected exposure, and other factors like changes in collateral arrangements and partial payments.
Credit spreads and non-credit factors can move independently.
For example, for an interest rate swap, changes in interest rates may increase the expected exposure, which would increase the counterparty credit valuation adjustment (CVA).
Independently, counterparty credit spreads may tighten, which would result in an offsetting decrease to CVA.
The Corporation enters into risk management activities to offset market driven exposures.
The Corporation often hedges the counterparty spread risk in CVA with CDS.
The Corporation hedges other market risks in both CVA and DVA primarily with currency and interest rate swaps.
Since the components of the valuation adjustments on derivatives move independently and the Corporation may not hedge all of the market-driven exposures, the effect of a hedge may increase the gains or losses relating to valuation adjustments on derivatives or may result in a gross gain from valuation adjustments on derivatives becoming a negative adjustment (or the reverse).
In 2014, the Corporation adopted FVA into valuation estimates primarily to include funding costs on uncollateralized derivatives and derivatives where the Corporation is not permitted to use the collateral it receives.
The change in estimate resulted in a net pretax FVA charge of $497 million including a charge of $632 million related to funding costs associated with derivative asset exposures, partially offset by a funding benefit of $135 million related to derivative liability exposures.
The net FVA charge was recorded as a reduction to sales and trading revenue in Global Markets.
The Corporation calculated this valuation adjustment based on modeled expected exposure profiles discounted for the funding risk premium inherent in these derivatives.
FVA related to derivative assets and liabilities is the effect of funding costs on the fair value of these derivatives.


In 2012, the Company incurred other operating charges of $447 million, which primarily consisted of $270 million associated with the Company’s productivity and reinvestment program; $163 million related to the Company’s other restructuring and integration initiatives; $20 million due to changes in the Company’s ready-to-drink tea strategy as a result of our U. S.  license agreement with Nestlé terminating at the end of 2012; and $8 million due to costs associated with the Company detecting carbendazim in orange juice imported from Brazil for distribution in the United States.
These charges were partially offset by reversals of $10 million associated with the refinement of previously established accruals related to the Company’s 2008–2011 productivity initiatives, as well as reversals of $6 million associated with the refinement of previously established accruals related to the Company’s integration of CCE’s former North America business.
Refer to Note 18 of Notes to Consolidated Financial Statements and see below for additional information on the Company’s productivity, integration and restructuring initiatives.
Refer to Note 19 of Notes to Consolidated Financial Statements for the impact these charges had on our operating segments.


The following table summarizes information about stock options outstanding at December 31, 2001 (in thousands of shares):


| Year Vesting of Restricted Shares | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total Outstanding |


| PRODUCTION CAPACITY NUMBER OF FACILITIES | Softwood lumber – board feet | Plywood – square feet (3/8”)(2) | Veneer – square feet (3/8”)(2)(3) | Oriented strand board – square feet (3/8”) | Hardwood lumber – board feet | Engineered I-Joists – lineal feet-4 | Engineered solid section – cubic feet-4 |


| Second Quarter 2009 First Quarter 2009 Fourth Quarter 2008 | (Dollars in millions) | Earning assets | Time deposits placed and other short-term investments | Federal funds sold and securities borrowed or purchased under agreements to resell | Trading account assets | Debt securities-1 | Loans and leases-2: | Residential mortgage-3 | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer-4 | Other consumer-5 | Total consumer | Commercial – domestic | Commercial real estate-6 | Commercial lease financing | Commercial – foreign | Total commercial | Total loans and leases | Other earning assets | Total earning assets-7 | Cash and cash equivalents | Other assets, less allowance for loan and lease losses | Total assets | Interest-bearing liabilities | Domestic interest-bearing deposits: | Savings | NOW and money market deposit accounts | Consumer CDs and IRAs | Negotiable CDs, public funds and other time deposits | Total domestic interest-bearing deposits | Foreign interest-bearing deposits: | Banks located in foreign countries | Governments and official institutions | Time, savings and other | Total foreign interest-bearing deposits | Total interest-bearing deposits | Federal funds purchased, securities loaned or sold under agreements to repurchase and other short-term borrowings | Trading account liabilities | Long-term debt | Total interest-bearing liabilities-7 | Noninterest-bearing sources: | Noninterest-bearing deposits | Other liabilities | Shareholders’ equity | Total liabilities and shareholders’ equity | Net interest spread | Impact of noninterest-bearing sources | Net interest income/yield on earning assets |


| Gross CarryingAmount (In thousands) | Balance as of December 31, 2016 | Goodwill resulting from acquisitions | Effect of foreign currency translation | Balance as of December 30, 2017 | Effect of foreign currency translation | Balance as of December 29, 2018 | 2010 | (In millions) | Revenues: | Electric sales to affiliates | Ground lease with ATSI | Other | Expenses: | Purchased power from affiliates | Fuel | Support services | Investment Income: | Interest income from affiliates | Interest income from FE | Interest Expense: | Interest expense to affiliates | Interest expense to FE | 2009 | (In millions) | Revenues: | Electric sales to affiliates | Ground lease with ATSI | Other | Expenses: | Purchased power from affiliates | Fuel | Support services | Investment Income: | Interest income from affiliates | Interest income from FE | Interest Expense: | Interest expense to affiliates | Interest expense to FE |


| September 30, | 2016 | (In millions) | Balance Sheet Data: | Cash and cash equivalents and marketable securities | Inventories | Total assets | Notes payable -3 | Total equity |


Commodity Revenue – Despite uncertainty regarding the U. S.  economy, we expect record revenue in 2008 based on current economic indicators, forecasted demand, improved customer service, and additional opportunities to reprice certain of our business.
Yield increases and fuel surcharges will be the primary drivers of commodity revenue growth in 2008.
We expect that overall volume will fall within a range of 1% higher to 1% lower than 2007, with continued softness in some market sectors.  ?


| Sites Corporate BD Life Sciences BD Medical Mixed(A) Total | Leased | Owned | Total | Square feet |


| Cash, net of cash acquired $479 | Fair value of prior interests | $510 |


| Year Amount | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total |


| Year Ended December 31, | 2011 | Steam Sold(MMlb) | General | Apartment house | Annual power | Total Steam Delivered to CECONY Customers | Steam Sold($ in millions) | General | Apartment house | Annual power | Other operating revenues | Total Steam Delivered to CECONY Customers | Average Revenue per MMlb Sold |


| Year Ended December 31, 2014 Year Ended December 31, 2013 | Dollars inMillions | Segments:-1 | Corporate | Public | Other | Headquarters-2 | Total income from operations |


| December 31, 2010 | Public | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve to twenty-four months | Greater than twenty-four to thirty-six months | Greater than thirty-six months | Total fixed maturities, available-for-sale |


| Year ended  December 31, | $ in millions | Equity in earnings of unconsolidated affiliates | Interest and dividend income | Gains/(losses) of consolidated investment products, net | Interest expense | Other gains and losses, net | Total other income and expenses | Equity Attributable to Common Shareholders | $ in millions | January 1, 2009 | Net income/(loss), including gains and losses attributable to noncontrolling interests | Other comprehensive income: | Currency translation differences on investments in overseas subsidiaries | Change in accumulated OCI related to employee benefit plans | Change in net unrealized gains on available-for-sale investments | Adoption of guidance now encompassed in ASC Topic 320 | Tax impacts of changes in accumulated other comprehensive income balances | Total comprehensive income | Adoption of guidance now encompassed in ASC Topic 320 | Change in noncontrolling interests in consolidated entities, net | Issuance of new shares | Dividends | Employee share plans: | Share-based compensation | Vested shares | Exercise of options | Tax impact of share-based payment | Modification of share-based payment awards | Purchase of shares | Acquisition of remaining noncontrolling interest in subsidiary | December 31, 2009 | Equity Attributable to Common Shareholders | $ in millions | January 1, 2008 | Net income, including gains and losses attributable to noncontrolling interests | Other comprehensive income | Currency translation differences on investments in overseas subsidiaries | Change in accumulated OCI related to employee benefit plans | Change in net unrealized losses on available-for-sale investments | Tax impacts of changes in accumulated OCI balances | Total comprehensive income | Change in noncontrolling interests in consolidated entities, net | Dividends | Employee share plans: | Share-based compensation | Vested shares | Exercise of options | Tax impact of share-based payment | Purchase of shares | December 31, 2008 |


| Years Ended December 31, | 2010 | (In millions, except per share data) | Total revenues | Income (loss) from continuing operations, net of income tax, attributable to common shareholders | Income (loss) from continuing operations, net of income tax, attributable to common shareholders per commonshare: | Basic | Diluted |


| Performance Share Units (In thousands) Weighted-AverageGrant DateFair Value | Outstanding on January 1, 2017 | Granted | Conversions to restricted stock units1 | Paid in cash equivalent | Canceled/forfeited | Outstanding on December 31, 20172 |


Commitments and Contingencies As of December 31, 2014 , approximately $20.2 billion of unused credit was available to PayPal Credit accountholders.
While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our PayPal Credit accountholders will access their entire available credit at any given point in time.
In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institutions that are the issuer of PayPal Credit products based on, among other things, account usage and customer creditworthiness.
When a consumer makes a purchase using a PayPal Credit products, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant.
We subsequently purchase the consumer receivables related to the consumer loans and as result of that purchase, bear the risk of loss in the event of loan defaults.
However, we subsequently sell a participation interest in the entire pool of consumer loans to the chartered financial institution that extended the consumer loans.
Although the chartered financial institution continues to own the customer accounts, we own and bear the risk of loss on the related consumer receivables, less the participation interest held by the chartered financial institution, and PayPal is responsible for all servicing functions related to the customer account balances.
As of December 31, 2014 , the total outstanding principal balance of this pool of consumer loans was $3.7 billion , of which the chartered financial institution owns a participation interest of $163 million , or 4.4% of the total outstanding balance of consumer receivables at that date.


The fluctuation in enterprise interest-earning assets is driven primarily by changes in enterprise interestbearing liabilities, specifically customer payables and deposits.
Average enterprise interest-earning assets decreased 8% to $40.9 billion for the year ended December 31, 2013 compared to 2012.
This was primarily a result of decreases in average available-for-sale securities and average loans, which were partially offset by an increase in average held-to-maturity securities.
Average enterprise interest-bearing liabilities decreased 9% to $38.2 billion for the year ended December 31, 2013 compared to 2012.
The decrease in average enterprise interest-bearing liabilities was due primarily to decreases in average deposits and average FHLB advances and other borrowings.
As part of our strategy to strengthen our overall financial and franchise position, we have been focused on improving our capital ratios by reducing risk and deleveraging the balance sheet.
Our deleveraging strategy included transferring customer deposits to third party institutions, including $3.2 billion of sweep deposits transferred during the year ended December 31, 2013.
At December 31, 2013, our customers held $13.8 billion of assets at third party institutions, including third party banks and money market funds.
Approximately 68% of these offbalance sheet assets resulted from our deleveraging efforts.
We estimate the impact of our deleveraging efforts on net operating interest income to be approximately 130 basis points based on the estimated current reinvestment rates on these assets, less approximately 35 basis points of cost associated with holding these assets on our balance sheet, primarily, FDIC insurance premiums.
While we may take some tactical actions in future periods, we consider our deleveraging initiatives to be complete.
Enterprise net interest spread decreased by 6 basis points to 2.33% for the year ended December 31, 2013 compared to 2012, due to lower yields on margin and reinvestment in securities at lower rates in the current interest rate environment, partially offset by lower rates on customer payables and deposits.
We expect enterprise net interest spread for 2014 will average slightly above the levels from 2013; however, enterprise net interest spread may further fluctuate based on the size and mix of the balance sheet, as well as the impact from the level of interest rates.
Commissions Commissions revenue increased 11% to $420.1 million for the year ended December 31, 2013 compared to 2012.
The main factors that affect commissions are DARTs, average commission per trade and the number of trading days.
DART volume increased 9% to 150,743 for the year ended December 31, 2013 compared to 2012.
Optionrelated DARTs as a percentage of total DARTs represented 24% of trading volume for both years ended December 31, 2013 and 2012.
Exchange-traded funds-related DARTs as a percentage of total DARTs represented 7% of trading volume for the year ended December 31, 2013 compared to 8% in 2012.
Average commission per trade increased 1% to $11.13 for the year ended December 31, 2013 compared to 2012.
Average commission per trade is impacted by customer mix and the different commission rates on various trade types (e. g.  equities, options, fixed income, stock plan, exchange-traded funds, mutual funds, forex and cross border).
Accordingly, changes in the mix of trade types will impact average commission per trade.


We describe above how we calculate AUM.
Also as noted above, our calculation of AUM may differ from the calculations of other asset managers, and as a result, this measure may not be comparable to similar measures presented by other asset managers.
Development Services Revenue increased by $11.9 million, or 22.4%, for the year ended December 31, 2014 as compared to the year ended December 31, 2013, primarily due to higher development fees during the year ended December 31, 2014 due to an increase in new projects started.
Performance Graph The following graph compares the total return, assuming reinvestment of dividends, on an investment in the Company, based on performance of the Company's common stock, with the total return of the Standard & Poor's 500 Composite Stock Index and the Dow Jones United States Travel and Leisure Index for a five year period by measuring the changes in common stock prices from December 31, 2011 to December 31, 2016.
The stock performance graph assumes for comparison that the value of the Company's common stock and of each index was $100 on December 31, 2011 and that all dividends were reinvested.
Past performance is not necessarily an indicator of future results.


| 2013 2012 2011 | (In millions) | Stock-based compensation expensed: | General and administrative | Lease operating expenses | Stock-based compensation capitalized | $191 |


| (in thousands, except weighted average data) Number of Shares Weighted- average grant date fair value | Outstanding, January 1 | Granted | Vested | Forfeited | Outstanding, December 31 |


| Bank of America Corporation Bank of America, N.A. | Senior Debt | Moody’s Investors Service | Standard & Poor’s | Fitch Ratings |


| Year Amount | 2005 | 2006 | 2007 | 2008 | 2009 | Thereafter |


| 12/12 12/13 12/14 12/15 12/16 12/17 | Royal Caribbean Cruises Ltd. | S&P 500 | Dow Jones US Travel & Leisure |


The sensitivity factors utilized for 2016 and presented above were selected based on historical data from 1996 to 2016, as follows (see the table below): ?
a 100 basis point parallel shift in the yield curve is consistent with a one standard deviation movement of the benchmark ten-year treasury yield; ?
a 20 percent drop for equity and alternative investments is broadly consistent with a one standard deviation movement in the S&P 500; and ?
a 10 percent depreciation of foreign currency exchange rates is consistent with a one standard deviation movement in the U. S.  dollar (USD)/Japanese yen (JPY) exchange rate.


| (In millions) 2008 2007 2006 | Capital | Compliance | Operating and maintenance | Remediation(b) | Total |


| Year Gallons Average Price  perGallon Aircraft Fuel  Expense Percent of Total Mainline Operating  Expenses | 2015 | 2014 |


| Initial Revised | Receivables | Inventories | Prepaid expenses and other | Property and equipment | Goodwill | Other intangible assets | Accounts payable | Accrued liabilities | Other liabilities | Total |


PART II ITEM 8 Financial Statements and Supplementary Data In November 2016, the FASB issued ASU No.2016-18, Statement of Cash Flows (Topic 230): Restricted Cash.
ASU 2016-18 requires entities to show the changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows.
We adopted ASU 2016-18 beginning with the quarter ended December 31, 2016 on a retrospective basis.
As a result Net Cash Provided by Operating Activities from Continuing Operations increased by $5 million in 2015.
End-of-period cash, cash equivalents and restricted cash increased by $21 million and $16 million as of December 26, 2015 and December 27, 2014, respectively.
We classify restricted cash within our Consolidated Balance Sheets consistent with the nature of the restriction (e. g.  cash restricted for future interest payments within the next 12 months is classified in Prepaid expenses and other current assets).
In August 2014, the FASB issued ASU No.2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40).
ASU 2014-15 requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year following the date its financial statements are issued.
If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year following the date its financial statements are issued.
Disclosure should include the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations, and management’s plans that are intended to mitigate those conditions or events.
We adopted ASU 2014-15 effective December 31, 2016.
The adoption had no impact on our Consolidated Financial Statements.


| Industry OTC Derivative Products-1  (dollars in millions) | Utilities | Banks and securities firms | Funds, exchanges and other financial services-2 | Special purpose vehicles | Regional governments | Healthcare | Industrials | Sovereign governments | Not-for-profit organizations | Insurance | Real Estate | Consumer staples | Other | Total |


Pensions Evergy incurs significant costs in providing non-contributory defined pension benefits.
The costs are measured using actuarial valuations that are dependent upon numerous factors derived from actual plan experience and assumptions of future plan experience.
Pension costs are impacted by actual employee demographics (including age, life expectancies, compensation levels and employment periods), earnings on plan assets, the level of contributions made to the plan, and plan amendments.
In addition, pension costs are also affected by changes in key actuarial assumptions, including anticipated rates of return on plan assets and the discount rates used in determining the projected benefit obligation and pension costs.
The assumed rate of return on plan assets was developed based on the weighted-average of long-term returns forecast for the expected portfolio mix of investments held by the plan.
The assumed discount rate was selected based on the prevailing market rate of fixed income debt instruments with maturities matching the expected timing of the benefit obligation.
These assumptions, updated annually at the measurement date, are based on management's best estimates and judgment; however, material changes may occur if these assumptions differ from actual events.
See Note 9 to the consolidated financial statements for information regarding the assumptions used to determine benefit obligations and net costs.
The following table reflects the sensitivities associated with a 0.5% increase or a 0.5% decrease in key actuarial assumptions for Evergy's qualified pension plans.
Each sensitivity reflects the impact of the change based on a change in that assumption only.


(1) Includes a $17 million net benefit related to the market impact on variable annuity guaranteed benefits for the year ended December 31, 2013.
Net Revenues Net revenues increased $1.1 billion, or 10%, to $12.3 billion for the year ended December 31, 2014 compared to $11.2 billion for the prior year primarily due to higher management and financial advice fees and other revenues.
Management and financial advice fees increased $557 million, or 11%, to $5.8 billion for the year ended December 31, 2014 compared to $5.3 billion for the prior year primarily due to higher asset-based fees driven by an increase in average AUM.
Average AUM increased $58.0 billion, or 10%, compared to the prior year primarily due to market appreciation and wrap account net inflows.
See our discussion on the changes in AUM in our segment results of operations section below.
Distribution fees increased $123 million, or 7%, to $1.9 billion for the year ended December 31, 2014 compared to $1.8 billion for the prior year due to higher client assets, as well as increased client activity.
Net investment income decreased $148 million, or 8%, to $1.7 billion for the year ended December 31, 2014 compared to $1.9 billion for the prior year primarily due to a $96 million decrease in investment income on fixed maturities driven by low interest rates and a $63 million decrease in net investment income of CIEs, partially offset by a $30 million increase in net realized gains primarily related to calls on fixed income securities.
Premiums increased $103 million, or 8%, to $1.4 billion for the year ended December 31, 2014 compared to $1.3 billion for the prior year primarily due to growth in auto and home premiums driven by continued new policy sales growth, primarily from our affinity relationships with Costco and Progressive.
Auto and home policies in force increased 11% compared to the prior year.
Other revenues increased $431 million, or 42%, to $1.5 billion for the year ended December 31, 2014 compared to $1.0 billion for the prior year due to a $376 million increase in other revenues of CIEs and higher fees from variable annuity guarantee sales in the prior year where the fees start on the first anniversary date, and higher average fee rates, partially offset by the impact of unlocking.
Other revenues for the year ended December 31, 2014 included a $29 million negative impact from unlocking compared to an $18 million negative impact in the prior year.
The primary driver of the unlocking impact to other revenues in both periods was lower projected gains on reinsurance contracts resulting from favorable mortality experience.
Expenses Total expenses increased $492 million, or 5%, to $9.7 billion for the year ended December 31, 2014 compared to $9.2 billion for the prior year primarily due to increases in distribution expenses and amortization of DAC.
Distribution expenses increased $311 million, or 11%, to $3.2 billion for the year ended December 31, 2014 compared to $2.9 billion for the prior year driven by higher advisor compensation due to growth in assets under management.
See our discussion on the changes in AUM in our segment results of operations section below.
Interest credited to fixed accounts decreased $93 million, or 12%, to $713 million for the year ended December 31, 2014 compared to $806 million for the prior year driven by lower average fixed annuity account balances and a lower


In December 2008, the board of directors approved an amendment to our bylaws to adopt a December 31 fiscal year-end, effective for the fiscal year-end 2008.
Prior to 2008, our fiscal year ended on the last Sunday of the calendar year.
As a result, the number of weeks in our fiscal year varied.
For the last three years: ?Fiscal year 2008 had 52 weeks and three days.
?Fiscal year 2007 had 52 weeks.
?Fiscal year 2006 had 53 weeks.
In reviewing our results of operations, it is important to understand these terms: ?Price realizations refer to net selling prices  this includes selling price plus freight minus normal sales deductions.
?Contribution to earnings refers to:  earnings before interest and income taxes for the Weyerhaeuser business segments and  earnings before income taxes for the Real Estate business segment.
Interest that previously was capitalized to Real Estate assets that are sold is included in cost of products sold and in contribution to earnings for the Real Estate segment.


Regulatory balancing accounts accumulate differences between revenues recognized and authorized revenue requirements until they are collected from customers or are refunded.
Regulatory balancing accounts include low income programs and purchased power and water accounts.
Debt expense is amortized over the lives of the respective issues.
Call premiums on the redemption of long-term debt, as well as unamortized debt expense, are deferred and amortized to the extent they will be recovered through future service rates.
As a result of American Water Capital Corp. ’s prepayment of the 5.62% Series C Senior Notes due December 21, 2018 (“Series C Senior Notes”) and 5.77% Series D Senior Notes due December 21, 2021 (“Series D Senior Notes”) and payment of a make-whole premium amount to the holders thereof of $34 million, the Company recorded a $6 million charge resulting from the early extinguishment of debt at the parent company.
Substantially all of the early debt extinguishment costs allocable to the Company’s utility subsidiaries were recorded as regulatory assets that the Company believes are probable of recovery in future rates.
Approximately $1 million of the early debt extinguishment costs allocable to the Company’s utility subsidiaries was amortized in 2017.
Purchase premium recoverable through rates is primarily the recovery of the acquisition premiums related to an asset acquisition by the Company’s California Utility subsidiary during 2002, and acquisitions in 2007 by the Company’s New Jersey Utility subsidiary.
As authorized for recovery by the California and New Jersey PUCs, these costs are being amortized to depreciation and amortization in the Consolidated Statements of Operations through November 2048.
Tank painting costs are generally deferred and amortized to operations and maintenance expense in the Consolidated Statements of Operations on a straight-line basis over periods ranging from two to fifteen years, as authorized by the regulatory authorities in their determination of rates charged for service.
Other regulatory assets include certain construction costs for treatment facilities, property tax stabilization, employee-related costs, deferred other postretirement benefit expense, business services project expenses, coastal water project costs, rate case expenditures and environmental remediation costs among others.
These costs are deferred because the amounts are being recovered in rates or are probable of recovery through rates in future periods.
Regulatory Liabilities Regulatory liabilities generally represent amounts that are probable of being credited or refunded to customers through the rate-making process.
Also, if costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities.
The following table summarizes the composition of regulatory liabilities as of December 31:


| Year Ended December | $ in millions | Equity securities | Debt securities and loans | Total net revenues1 | Operating expenses | Pre-tax earnings |


·	 The decrease in Mortgage Servicing Rights of $2.7 billion was primarily attributed to mark-to-market losses recognized in the portfolio due to decreases in the mortgage interest rates and increases in refinancing.
·	 The increase in Securities sold under agreements to repurchase of $5 billion is driven by a $6.2 billion increase from net transfers in as the continued credit crisis impacted the availability of observable inputs for the underlying securities related to this liability.
This was offset by a reduction from net settlements of $1.4 billion.
·	 The decrease in short-term borrowings of $3.7 billion is due to net transfers out of $1.8 billion as valuation methodology inputs considered to be unobservable were determined not to be significant to the overall valuation.
In addition, net payments of $1.8 billion were made during the year.
·	 The increase in long-term debt of $2.2 billion is driven by: – The net transfers in of $38.8 billion, substantially all of which related to the transfer of consolidated SIV debt in the first quarter of 2008, as the availability of observable inputs continued to decline due to the current crisis; offset by – $2.2 billion in gains recognized as credit spreads widened during the year; and – $34.3 billion decrease from net settlements/payments.
Included in these settlements were $21 billion of payments made on maturing SIV debt and the replacement of $17 billion of non-recourse, consolidated SIV debt classified as Level 3 with Citigroup debt classified as Level 2.
This replacement occurred in connection with the purchase of the SIV assets by the Company in November 2008.


APACHE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The diluted EPS calculation excludes options and restricted shares that were anti-dilutive totaling 4.9 million, 4.4 million, and 2.5 million for the years ended December 31, 2013, 2012, and 2011, respectively.
For the year ended December 31, 2012, 14.3 million shares related to the assumed conversion of the Mandatory Convertible Preferred Stock were also anti-dilutive.
Stock Repurchase Program In May 2013, Apache’s Board of Directors authorized the purchase of up to 30 million shares of the Company’s common stock, valued at approximately $2 billion when first announced.
Shares may be purchased either in the open market or through privately held negotiated transactions.
The Company initiated the buyback program on June 10, 2013, with the repurchase of 2,924,271 shares at an average price of $85.47 during the month of June.
During the fourth quarter of 2013, 8,297,648 shares were repurchased at an average price of $90.08.
An additional 2,393,917 shares were purchased subsequent to December 31, 2013 at an average cost of $84.67.
The Company anticipates that further purchases will primarily be made with proceeds from asset dispositions, but the Company is not obligated to acquire any specific number of shares.
Common Stock Dividend The Company paid common stock dividends of $0.77 per share in 2013, $0.66 per share in 2012, and $0.60 per share in 2011.
Stock Compensation Plans The Company has several stock-based compensation plans, which include stock options, stock appreciation rights, restricted stock, and conditional restricted stock unit plans.
On May 5, 2011, the Company’s shareholders approved the 2011 Omnibus Equity Compensation Plan (the 2011 Plan), which is intended to provide eligible employees with equity-based incentives.
The 2011 Plan provides for the granting of Incentive Stock Options, Non-Qualified Stock Options, Performance Awards, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, or any combination of the foregoing.
A total of 27.3 million shares were authorized and available for grant under the 2011 Plan as of December 31, 2013.
Previously approved plans remain in effect solely for the purpose of governing grants still outstanding that were issued prior to approval of the 2011 Plan.
All new grants are issued from the 2011 Plan.
For 2013, 2012, and 2011, stock-based compensation expensed was $136 million, $167 million, and $113 million ($94 million, $119 million, and $73 million after tax), respectively.
Costs related to the plans are capitalized or expensed based on the nature of each employee’s activities.
A description of the Company’s stock-based compensation plans and related costs follows:


| At year end 2008 2007 | Tier 1 Capital | Total Capital (Tier 1 and Tier 2) | Leverage(1) | 2008 | Expected rate of return | Actual rate of return |


| 2008 2007 2006 | (In millions) | Revenue | Expenses | Impairment of goodwill and acquired intangible assets | Restructuring charges | Loss from discontinued operations |


Table 0
Con Edison of New York
Table 1
O&R
Table 2


The unrecognized prior service cost (income) at December 31, 2015 was $9 million, $46 million, and $(7) million in the U. S. , U. K.  and Other plans, respectively.
For the U. S.  pension plans we use a market-related valuation of assets approach to determine the expected return on assets, which is a component of net periodic benefit cost recognized in the Consolidated Statements of Income.
This approach
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements  (Continued) backed by trust preferred securities issued by financial institutions and other entities, and other debt securities having a cost basis of $157 million.
Based on a review of each of the remaining securities in the investment securities portfolio at December 31, 2010, with the exception of the aforementioned securities for which other-than-temporary impairment losses were recognized, the Company concluded that it expected to recover the amortized cost basis of its investment.
As of December 31, 2010, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities.
At December 31, 2010, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $413 million of cost method investment securities.
At December 31, 2010, investment securities with a carrying value of $4,762,579,000, including $3,500,392,000 of investment securities available for sale, were pledged to secure demand notes issued to the U. S.  Treasury, borrowings from various FHLBs, repurchase agreements, governmental deposits, interest rate swap agreements and available lines of credit as described in note 9.
Investment securities pledged by the Company to secure obligations whereby the secured party is permitted by contract or custom to sell or repledge such collateral totaled $1,937,817,000 at December 31, 2010.
The pledged securities included securities of the U. S.  Treasury and federal agencies and mortgagebacked securities.4.
Loans and leases Total loans and leases outstanding were comprised of the following:


Commissions Commissions revenue increased 4% to $442 million for the year ended December 31, 2016, compared to the same period in 2015.
The main factors that affect commissions revenue are DARTs, average commission per trade and the number of trading days.
DARTs volume increased 6% to 164,134 for the year ended December 31, 2016, compared to the same period in 2015, mainly driven by increased trading activity related to OptionsHouse.
Derivative DARTs represented 26% of trading volume for the year ended December 31, 2016, compared to 24% of trading volume for the same period in 2015.
Average commission per trade decreased 1% to $10.70 for the year ended December 31, 2016, compared to the same period in 2015.
Average commission per trade is impacted by customer mix, differing commission rates on various trade types (e. g.  equities, derivatives, stock plan and mutual funds), and the lower price structure for OptionsHouse customers.


| High Low Close CashDividends Declared | 2009 Quarter | First | Second | Third | Fourth | Total | 2008 Quarter | First | Second | Third | Fourth | Total |


| December 31, | 2012 | Shareholders’ equity | Deduct: | Losses in other comprehensive income on available-for-sale debt securities and cash flow hedges, net of tax | Goodwill and other intangible assets, net of deferred tax liabilities | Subtotal | Deduct: | Disallowed servicing assets and deferred tax assets | Tier 1 common | Total risk-weighted assets | Tier 1 common ratio (Tier 1 common / Total risk-weighted assets) |


| 2014 Unrestricted/Securitized 2013 Unrestricted/Securitized | Due in months: | 0 – 12 | 13 – 24 | 25 – 36 | 37 – 48 | 49 – 60 | Thereafter | Total |


| 2005 High Low | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 | 2004 | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 | Maturity Date | 2013 | In thousands of dollars except for rates | Long-term Debt | Interest Rate | Grantor trusts | (in millions) | December 31, 2010 | Fixed maturities, available-for-sale | Fixed maturities, trading | Equity securities, trading | Other investments | Cash and cash equivalents | Accrued investment income | Premiums due and other receivables | Total assets | Deferred income taxes | Other liabilities -1 | Total liabilities | December 31, 2009 | Fixed maturities, available-for-sale | Fixed maturities, trading | Equity securities, trading | Cash and cash equivalents | Accrued investment income | Premiums due and other receivables | Total assets | Deferred income taxes | Other liabilities -1 | Total liabilities |


Revenue Recognition Evergy recognizes revenue on the sale of electricity to customers over time as the service is provided in the amount it has the right to invoice.
Revenues recorded include electric services provided but not yet billed by Evergy.
Unbilled revenues are recorded for kWh usage in the period following the customers' billing cycle to the end of the


| 2012 vs. 2011 2011 vs. 2010 | Supply source (GWh) | Nuclear generation(b) | Mid-Atlantic | Midwest | 139,862 | Fossil and renewables(b) | Mid-Atlantic(b)(d) | Midwest | New England | ERCOT(e) | Other Regions(f) | 31,839 | Purchased power | Mid-Atlantic(c) | Midwest | New England | New York(c) | ERCOT(e) | Other Regions(f) | 91,994 | Total supply by region(g) | Mid-Atlantic(h) | Midwest(i) | New England | New York | ERCOT | Other Regions(f) | Total supply |


| Common Stock | Issued | (in millions) | Balance, December 31, 2012 | Common Stock issued | Common Stock acquired | Stock-based compensation programs-1 | Balance, December 31, 2013 | Common Stock issued | Common Stock acquired | Stock-based compensation programs-1 | Balance, December 31, 2014 | Common Stock issued | Common Stock acquired | Stock-based compensation programs-1 | Balance, December 31, 2015 |


Note 23 – Restrictions on cash and intercompany funds transfers JPMorgan Chase Bank’s business is subject to examination and regulation by the Office of the Comptroller of the Currency (OCC).
The Bank is a member of the Federal Reserve System and its deposits are insured by the Federal Deposit Insurance Corporation (FDIC).
The Federal Reserve Board requires depository institutions to maintain cash reserves with a Federal Reserve Bank.
The average amount of reserve balances deposited by the Firm’s bank subsidiaries with various Federal Reserve Banks was approximately $2.7 billion in 2005 and $3.8 billion in 2004.
Restrictions imposed by federal law prohibit JPMorgan Chase and certain other affiliates from borrowing from banking subsidiaries unless the loans are secured in specified amounts.
Such secured loans to the Firm or to other affiliates are generally limited to 10% of the banking subsidiary’s total capital, as determined by the risk-based capital guidelines; the aggregate amount of all such loans is limited to 20% of the banking subsidiary’s total capital.
The principal sources of JPMorgan Chase’s income (on a parent company-only basis) are dividends and interest from JPMorgan Chase Bank and the other banking and nonbanking subsidiaries of JPMorgan Chase.
In addition to dividend restrictions set forth in statutes and regulations, the FRB, the OCC and the FDIC have authority under the Financial Institutions Supervisory Act to prohibit or to limit the payment of dividends by the banking organizations they supervise, including JPMorgan Chase and its subsidiaries that are banks or bank holding companies, if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization.
At January 1, 2006 and 2005, JPMorgan Chase’s bank subsidiaries could pay, in the aggregate, $7.4 billion and $6.2 billion, respectively, in dividends to their respective bank holding companies without prior approval of their relevant banking regulators.
Dividend capacity in 2006 will be supplemented by the banks’ earnings during the year.
In compliance with rules and regulations established by U. S.  and non-U. S.  regulators, as of December 31, 2005 and 2004, cash in the amount of $6.4 billion and $4.3 billion, respectively, and securities with a fair value of $2.1 billion and $2.7 billion, respectively, were segregated in special bank accounts for the benefit of securities and futures brokerage customers.


The Company anticipates that it is reasonably possible that payments of approximately $2 million will be made primarily due to the conclusion of state income tax examinations within the next 12 months.
Additionally, certain state and foreign income tax returns will no longer be subject to examination and as a result, there is a reasonable possibility that the amount of unrecognized tax benefits will decrease by $7 million.
At December 31, 2007, there were $42 million of tax benefits that if recognized would affect the effective rate.
The Company recognizes interest accrued related to: (1) unrecognized tax benefits in Interest expense and (2) tax refund claims in Other revenues on the Consolidated Statements of Income.
The Company recognizes penalties in Income tax expense (benefit) on the Consolidated Statements of Income.
During 2007, the Company recorded charges of approximately $4 million for interest expense and $2 million for penalties.
Provision has been made for the expected U. S.  federal income tax liabilities applicable to undistributed earnings of subsidiaries, except for certain subsidiaries for which the Company intends to invest the undistributed earnings indefinitely, or recover such undistributed earnings tax-free.
At December 31, 2007, the Company has not provided deferred taxes of $126 million, if sold through a taxable sale, on $361 million of undistributed earnings related to a domestic affiliate.
The determination of the amount of the unrecognized deferred tax liability related to the undistributed earnings of foreign subsidiaries is not practicable.
In connection with a non-recurring distribution of $850 million to Diamond Offshore from a foreign subsidiary, a portion of which consisted of earnings of the subsidiary that had not previously been subjected to U. S.  federal income tax, Diamond Offshore recognized $59 million of U. S.  federal income tax expense as a result of the distribution.
It remains Diamond Offshore’s intention to indefinitely reinvest future earnings of the subsidiary to finance foreign activities.
Total income tax expense for the years ended December 31, 2007, 2006 and 2005, was different than the amounts of $1,601 million, $1,557 million and $639 million, computed by applying the statutory U. S.  federal income tax rate of 35% to income before income taxes and minority interest for each of the years.


Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Off-Balance Sheet Arrangements: We do not have guarantees or other off-balance sheet financing arrangements that we believe are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources.
See Note 14, Financing Arrangements, to the consolidated financial statements for a discussion of our accounts receivable securitization and factoring programs and other financing arrangements.
Aggregate Contractual Obligations: The following table summarizes our contractual obligations at December 30, 2017 (in millions):


permit, the company is required to investigate the property and, where environmental contamination is found and action is necessary, to conduct corrective action to remediate the contamination.
The company has investigated various sections of the property and is performing additional investigations.
The company has submitted to the NYSDEC and the New York State Department of Health reports and in the future will be submitting additional reports identifying the known areas of contamination.
The company estimates that its undiscounted potential liability for the completion of the site investigation and cleanup of the known contamination on the property could range from $152 million to $451 million.
Flushing Service Center Site The owner of a former CECONY service center facility in Flushing, New York, informed the company that PCB contamination had been detected on a substantial portion of the property, which the owner remediated pursuant to the New York State Brownfield Cleanup Program administered by the NYSDEC and has redeveloped for residential and commercial use.
The property owners claim against the company for its environmental response costs for the site has been resolved.
In September 2007, the NYSDEC demanded that the company investigate and remediate PCB contamination that may have migrated into the adjacent Flushing River from the site.
In April 2008, the company and NYSDEC entered into a consent order under which the company has agreed to implement a NYSDECapproved investigation program for the Flushing River and, if deemed necessary by the NYSDEC to protect human health and the environment from such contamination, to implement a NYSDEC-approved remediation program for any PCB contamination in the river attributable to the site.
In March 2011, the company submitted to NYSDEC a report indicating that PCBs had migrated from the site to sediment in a portion of the river.
In August 2013, the NYSDEC selected a remedy that requires the company to submit a remedial design report, remove contaminated sediment, restore the river bed with clean material, prepare a site management plan and implement institutional controls.
The company estimates that its undiscounted potential liability for the completion of the cleanup in Flushing River will be at least $5.4 million.
Gowanus Canal In August 2009, CECONY received a notice of potential liability and request for information from the EPA about the operations of the company and its predecessors at sites adjacent or near the 1.8 mile Gowanus Canal in Brooklyn, New York.
In March 2010, the EPA added the Gowanus Canal to its National Priorities List of Superfund sites.
The canals adjacent waterfront is primarily commercial and industrial, currently consisting of concrete plants, warehouses, and parking lots, and the canal is near several residential neighborhoods.
In September 2013, the EPA issued its record of decision for the site.
The EPA concluded that there was significant contamination at the site, including polycyclic aromatic hydrocarbons, polychlorinated biphenyls (PCBs), pesticides, metals, and volatile organic compounds.
The EPA selected a remedy for the site that includes dredging and disposal of some contaminated sediments and stabilization and capping of contamination that will not be removed.
The EPA estimated the cost of the selected remedy to be $506.1 million (and indicated the actual cost could be significantly higher or lower).
The EPA has identified 35 potentially responsible parties (PRPs) with respect to the site, including CECONY (which the EPA indicated has facilities that may be a source of PCBs at the site).
The EPA is expected to order certain of the PRPs, including CECONY, to coordinate and cooperate with each other to perform and/or fund the remedial design for the selected remedy.
CECONY is unable to predict its exposure to liability with respect to the Gowanus Canal site.
Other Superfund Sites CECONY is a potentially responsible party (PRP) with respect to other Superfund sites where there are other PRPs and where it is generally not responsible for managing the site investigation and remediation.
Work at these sites is in various stages, with the company participating in PRP groups at some of the sites.
Investigation, remediation and monitoring at some of these sites have been, and are expected to continue to be, conducted over extended periods of time.
The company does not believe that it is reasonably likely that monetary sanctions, such as penalties, will be imposed upon it by any governmental authority with respect to these sites.
The following table lists each of CECONYs other Superfund sites for which the company anticipates it may have a liability.
The table also shows for each such site, its location, the year in which the company was designated or alleged to be a PRP or to otherwise have responsibilities with respect to the site (shown in the table under Start), the name of the court or agency in which proceedings with respect to the site are pending and CECONYs estimated percentage of total liability for each site.
The company currently estimates that its potential liability for investigation, remediation, monitoring and environmental damages at each site is $0.2 million or less, with the exception of the Cortese Landfill site for which the estimate is $1 million.
Superfund liability is joint and several.
The companys estimate of its liability for each site was determined pursuant to consent decrees, settlement agreements or otherwise and in light of the financial condition of other PRPs.
The companys actual liability could differ substantially from amounts estimated.


| Pension Postretirement | U.S. Plans | For the Year Ended December 31, 2018 | Discount rate | Rate of compensation increase | Expected return on assets | For the Year Ended December 31, 2017 | Discount rate | Rate of compensation increase | Expected return on assets | For the Year Ended December 31, 2016 | Discount rate | Rate of compensation increase | Expected return on assets |


| Year Ended December 31, | 2011 | (millions) | Other Revenues | 2011 | (millions) | Production Expense | Exploration Expense | Depreciation, Depletion and Amortization | General and Administrative | Gain on Divestitures | Asset Impairments | Other Operating Expense, Net | Total |


Shareholders Equity The Company has a share repurchase program in place to return excess capital to shareholders.
During the twelve months ended December 31, 2008, 2007 and 2006 the Company repurchased a total of 12.7 million, 15.9 million and 10.7 million shares, respectively, of its common stock at an average price of $48.26, $59.59 and $44.12, respectively.
As of December 31, 2008, the Company had approximately $1.3 billion remaining under a share repurchase authorization.
In light of the current market environment, the Company has temporarily suspended its stock repurchase program.
The Company may also reacquire shares of its common stock under its 2005 ICP related to restricted stock awards.
Restricted shares that are forfeited before the vesting period has lapsed are recorded as treasury shares.
In addition, the holders of restricted shares may elect to surrender a portion of their shares on the vesting date to cover their income tax obligations.
These vested restricted shares reacquired by the Company and the Companys payment of the holders income tax obligations are recorded as a treasury share purchase.
The restricted shares forfeited under the 2005 ICP and recorded as treasury shares were 0.3 million shares in each of the years ended December 31, 2008, 2007 and 2006.
For the years ended December 31, 2008 2007 and 2006, the Company reacquired 0.5 million, 0.5 million and 0.4 million shares, respectively, of its common stock through the surrender of restricted shares upon vesting and paid in the aggregate $24 million, $29 million and $20 million, respectively, related to the holders income tax obligations on the vesting date.
During the twelve months ended December 31, 2008, the Company reissued 1.8 million treasury shares for restricted stock award grants and the issuance of shares vested under the P2 Deferral Plan and the Transition and Opportunity Bonus (T&O Bonus) program.
In 2005, the Company awarded bonuses to advisors under the T&O Bonus program which were converted to 2.0 million share-based awards under the 2005 ICP.
The awards had all been issued as of December 31, 2008.


| Fiscal Year Ended | (In millions) | Cash Flows Provided By (Used In) | Net cash provided by operating activities | Net cash used in investing activities | Net cash used in financing activities | Exchange rate changes | Change in cash and cash equivalents |


| Percent change | years ended December 31 (in millions) | Research and development | as a % of net sales | Acquired in-process research and development |


| Branches | Florida | Tennessee | Alabama | Mississippi | Georgia | Louisiana | Arkansas | Texas | Missouri | Indiana | Illinois | South Carolina | Kentucky | Iowa | North Carolina | Total | 2017 | (In millions, except per share data) | EARNINGS SUMMARY | Interest income, including other financing income | Interest expense and depreciation expense on operating lease assets | Net interest income and other financing income | Provision for loan losses | Net interest income and other financing income after provision for loan losses | Non-interest income | Non-interest expense | Income from continuing operations before income taxes | Income tax expense | Income from continuing operations | Income (loss) from discontinued operations before income taxes | Income tax expense (benefit) | Income (loss) from discontinued operations, net of tax | Net income | Net income from continuing operations available to common shareholders | Net income available to common shareholders | Earnings per common share from continuing operations – basic | Earnings per common share from continuing operations – diluted | Earnings per common share – basic | Earnings per common share – diluted | Return on average common stockholders' equity | Return on average tangible common stockholders’ equity (non-GAAP)(1) | Return on average assets from continuing operations | BALANCE SHEET SUMMARY | As of December 31 | Loans, net of unearned income | Allowance for loan losses | Assets | Deposits | Long-term debt | Stockholders’ equity | Average balances | Loans, net of unearned income | Assets | Deposits | Long-term debt | Stockholders’ equity | SELECTED RATIOS | Basel I Tier 1 common regulatory capital (non-GAAP)(3) | Basel III common equity Tier 1 ratio-2 | Basel III common equity Tier 1 ratio—Fully Phased-In Pro-Forma (non-GAAP)(1)(2)(3) | Tier 1 capital-2(3)(4) | Total capital-2(3)(4) | Leverage capital-2(3)(4) | Tangible common stockholders’ equity to tangible assets (non-GAAP)(1) | Efficiency ratio | Adjusted efficiency ratio (non-GAAP)(1) |


| 2013 2012 2011 | Rent expense | Less: sublease income | Net rent expense |


| Fiscal2012 Fiscal2011 Fiscal2010 | Financial Management Solutions | Employee Management Solutions | Payment Solutions | Consumer Tax | Accounting Professionals | Financial Services |


| Payments due by period | Contractual Obligations | Operating Leases | Purchase Obligations | Total |


| 2009 Level 1 Level 2 Level 3 Total | (In Millions) | Assets: | Temporary cash investments | Decommissioning trust funds: | Equity securities | Debt securities | Power contracts | Securitization recovery trust account | Gas hedge contracts | Other investments | $2,658 | 2008 | (In Millions) | Assets: | Temporary cash investments | Decommissioning trust funds | Power contracts | Securitization recovery trust account | Other investments | $2,360 | Liabilities: | Gas hedge contracts |


In December 2002, a net charge of $3,081 million ($5.30 per share).
On December 10, 2002, Schlumberger announced that the Board of Directors had approved an updated strategy for its SchlumbergerSema business segment.
The new strategic plan outlook, current business values and the reorganization of SchlumbergerSema constitute significant events that required an impairment analysis to be performed in accordance with FAS 142.
SchlumbergerSema was valued on a stand-alone basis; each reporting unit within SchlumbergerSema
the capability of existing Q-Land* systems and is currently acquiring data from 53,000 live point-receiver channels in conjunction with the WesternGeco DX-80* Desert Explorer with MD Sweep* technology introduced the previous year.
The outlook for 2010 remains largely dependent on the prospects for the general economy.
At the end of the third quarter of 2009, we indicated that we were encouraged that signs were emerging that demand for oil and gas would begin to increase.
Consensus forecasts now predict that oil demand in 2010 will increase, particularly in the developing world, for the first time since 2007.
As a result we feel that oil prices are likely to be sustained at current levels and that as our customers confidence grows, their exploration and production budgets will increase.
We feel that considerable leverage to increase investment exists in offshore markets, in Russia, as well as in certain emerging investment opportunities such as Iraq.
These events will be dependent on continued increases in economic growth in the second half of the year beyond the current government stimulus packages.
For natural gas activity we remain a great deal more cautious.
Despite signs of some recovery in industrial demand as well as the recent cold weather, we consider that markets remain generally oversupplied.
Increased LNG flows together with further capacity being added in 2010, as well as the general uncertainty over the decline rates of unconventional gas production, have the potential to limit the current increase in the North American gas drilling rig count.
We anticipate that 2010 will be a better year for multiclient seismic, and for activity in land seismic particularly in Middle East and North Africa.
While Marine activity is expected to be reasonably robust, pricing improvements will be limited due to continued new capacity additions.
Longer term we remain confident that considerably increased spending will be necessary to maintain sufficient reserves and production of hydrocarbons to meet the worlds needs.
Our technology portfolio and worldwide infrastructure mean we are strongly positioned to capture growth opportunities as our customers begin to increase their investment.
The following discussion and analysis of results of operations should be read in conjunction with the Consolidated Financial Statements.
Fourth Quarter 2009 Results


| 12/28/2013 12/27/2014 12/26/2015 12/31/2016 12/30/2017 12/29/2018 | Tractor Supply Company | S&P 500 | S&P Retail Index |


| December 31, 2016 | Lowest Rating Agency Rating | AAA | (in millions) | Collateralized by sub-prime mortgages-1 | Collateralized loan obligations | Collateralized by education loans-2 | Collateralized by credit cards | Collateralized by auto loans | Other asset-backed securities-3 | Total asset-backed securities-4 |


Management Fees We provide a broad range of investment management strategies, specialized investment management advisory services and other financial services for corporations, public funds, and other sophisticated investors.
These services are offered through SSgA.
Based upon assets under management, SSgA is the largest manager of institutional assets worldwide, the largest manager of assets for tax-exempt organizations (primarily pension plans) in the United States, and the third largest investment manager overall in the world.
SSgA offers a broad array of investment management strategies, including passive and active, such as enhanced indexing and hedge fund strategies, using quantitative and fundamental methods for both U. S.  and global equities and fixed income securities.
SSgA also offers exchange traded funds, or ETFs, such as the SPDR?
Dividend ETFs.
The 10% decrease in management fees from 2007 primarily resulted from declines in average month-end equity market valuations and lower performance fees.
Average month-end equity market valuations, individually presented in the above “INDEX” table, were down an average of 18% compared to 2007.
The decrease in performance fees from $72 million in 2007 to $21 million in 2008 was generally the result of reduced levels of assets under management subject to performance fees, and somewhat lower relative performance measured against specified benchmarks during 2008.
Management fees generated from customers outside the United States were approximately 40% of total management fees for 2008, down slightly from 41% for 2007.
At year-end 2008, assets under management were $1.44 trillion, compared to $1.98 trillion at year-end 2007.
While certain management fees are directly determined by the value of assets under management and the investment strategy employed, management fees reflect other factors as well, including our relationship pricing for customers who use multiple services, and the benchmarks specified in the respective management agreements related to performance fees.
Accordingly, no direct correlation necessarily exists between the value of assets under management, market indices and management fee revenue.
The overall decrease in assets under management at December 31, 2008 compared to December 31, 2007 resulted from declines in market valuations and from a net loss of business, with declines in market valuations representing the substantial majority of the decrease.
During 2008, we experienced an aggregate net loss of business of approximately $55 billion, compared to net new business of approximately $116 billion during 2007.
Our levels of assets under management were affected by a number of factors, including investor issues related to SSgA’s active fixed-income strategies and the relative under-performance of certain of our passive equity products.
The net loss of business of $55 billion for 2008 did not reflect new business awarded to us during 2008 that had not been installed prior to December 31, 2008.
This new business will be reflected in assets under management in future periods after installation.
Assets under management consisted of the following at December 31:


| As of December 31, | Description | Commercial Paper | The Hartford | HLI | Total commercial paper | Revolving Credit Facility | 5-year revolving credit facility | 3-year revolving credit facility | Total revolving credit facility | Total Outstanding CommercialPaper and Revolving Credit Facilities |


Overview Exploration and Production Prevailing prices for the various grades of crude oil and natural gas that we produce significantly impact our revenues and cash flows.
Prices were volatile in 2009, but not as much as in the previous year.
Prices in 2009 were also lower than in recent years as illustrated by the annual averages for key benchmark prices below.


The changes in fair values of these mortgage loans are reported in Other revenue in the Company’s Consolidated Statement of Income.
The changes in fair value during the years ended December 31, 2009 and 2008 due to instrument-specific credit risk resulted in a $10 million loss and $32 million loss, respectively.
Related interest income continues to be measured based on the contractual interest rates and reported as such in the Consolidated Statement of Income.
Mortgage servicing rights The Company accounts for mortgage servicing rights (MSRs) at fair value.
Fair value for MSRs is determined using an option-adjusted spread valuation approach.
This approach consists of projecting servicing cash flows under multiple interest-rate scenarios and discounting these cash flows using risk-adjusted rates.
The model assumptions used in the valuation of MSRs include mortgage prepayment speeds and discount rates.
The fair value of MSRs is primarily affected by changes in prepayments that result from shifts in mortgage interest rates.
In managing this risk, the Company hedges a significant portion of the values of its MSRs through the use of interest-rate derivative contracts, forward-purchase commitments of mortgage-backed securities, and purchased securities classified as trading.
See Note 23 to the Consolidated Financial Statements for further discussions regarding the accounting and reporting of MSRs.
These MSRs, which totaled $6.5 billion and $5.7 billion as of December31, 2009 and 2008, respectively, are classified as Mortgage servicing rights on Citigroup’s Consolidated Balance Sheet.
Changes in fair value of MSRs are recorded in Commissions and fees in the Company’s Consolidated Statement of Income.


| 2013 $28.7 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total |


| 2011 2010 2009 | Rent expense | Less: sublease income | Net rent expense |


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Union Pacific Corporation and Subsidiary Companies For purposes of this report, unless the context otherwise requires, all references herein to the “Corporation”, “Company”, “UPC”, “we”, “us”, and “our” mean Union Pacific Corporation and its subsidiaries, including Union Pacific Railroad Company, which will be separately referred to herein as “UPRR” or the “Railroad”.1.
Nature of Operations Operations and Segmentation – We are a Class I railroad operating in the U. S.  Our network includes 32,084 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern U. S.  gateways and providing several corridors to key Mexican gateways.
We own 26,064 miles and operate on the remainder pursuant to trackage rights or leases.
We serve the western two-thirds of the country and maintain coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico.
Export and import traffic is moved through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders.
The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment.
Although we provide and analyze revenue by commodity group, we treat the financial results of the Railroad as one segment due to the integrated nature of our rail network.
The following table provides freight revenue by commodity group:


| (In Millions) | 2003 net revenue | Price applied to unbilled sales | Deferred fuel cost revisions | Rate refund provisions | Volume/weather | Summer capacity charges | Other | 2004 net revenue |


The fair value of our total investments increased $4.8 billion during 2010, primarily due to unrealized appreciation, the investing of operating cash flows, and the portfolios acquired in the 2010 corporate acquisitions.
The following tables show the market value of our fixed maturities and short-term investments at December 31, 2010 and 2009.
The first table lists investments according to type and the second according to S&P credit rating.


Entergy Corporation and Subsidiaries Notes to Financial Statements 116 for 2015 are for Tranche A-1 and $27.4 million are for Tranche A-2, and all of the scheduled principal payments for 2016 are for Tranche A-2.
With the proceeds, Entergy Texas Restoration Funding purchased from Entergy Texas the transition property, which is the right to recover from customers through a transition charge amounts sufficient to service the securitization bonds.
The transition property is reflected as a regulatory asset on the consolidated Entergy Texas balance sheet.
The creditors of Entergy Texas do not have recourse to the assets or revenues of Entergy Texas Restoration Funding, including the transition property, and the creditors of Entergy Texas Restoration Funding do not have recourse to the assets or revenues of Entergy Texas.
Entergy Texas has no payment obligations to Entergy Texas Restoration Funding except to remit transition charge collections.
Entergy New Orleans Affiliate Notes Pursuant to its plan of reorganization, in May 2007 Entergy New Orleans issued notes due in three years in satisfaction of its affiliate prepetition accounts payable (approximately $74 million, including interest), including its indebtedness to the Entergy System money pool.
In May 2010, Entergy New Orleans repaid, at maturity, the notes payable.
NOTE 6.
PREFERRED EQUITY (Entergy Corporation, Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans) The number of shares and units authorized and outstanding and dollar value of preferred stock, preferred membership interests, and minority interest for Entergy Corporation subsidiaries as of December 31, 2011 and 2010 are presented below.
All series of the Utility preferred stock are redeemable at the option of the related company.


| Years ended December 31 2007 2006 2005 | Interest paid (millions) | Weighted-average interest rates — short-term borrowings |


| Year ended December 31, 2007 Year ended December 31, 2006 | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial loans | Policy loans | Short-term investments and cash equivalents | Other investments | Gross investment income before investment expenses | Investment expenses | Total investment income |


| December 31, (in millions) 2018 2017 | Residential real estate – excluding PCI | Residential mortgage | Home equity | Other consumer loans | Auto | Consumer & Business Banking | Residential real estate – PCI | Home equity | Prime mortgage | Subprime mortgage | Option ARMs | Total retained loans |


| Total Less than1 Year 1-3 Years 3-5 Years More than5 Years | Contractual obligations | Long-term debt-1 | Capital lease obligations-2 | Operating leases-3 | Purchase obligations-4 | Other long-term obligations-5 | Total |


| Years Ended December 31, | 2014 | (in millions) | RiverSource Life | Statutory net gain from operations-1 | Statutory net income-1 | IDS Property Casualty | Statutory net income (loss) |


CONSOLIDATED RESULTS OF OPERATIONS This following section provides a comparative discussion of JPMorgan Chases Consolidated Results of Operations on a reported basis for the three-year period ended December 31, 2010.
Factors that related primarily to a single business segment are discussed in more detail within that business segment.
For a discussion of the Critical Accounting Estimates used by the Firm that affect the Consolidated Results of Operations, see pages 149 154 of this Annual Report.


| % B/(W) | Income/(Expense) | Corporate and unallocated G&A | Unallocated restaurant costs | Unallocated Franchise and license fees and income | Unallocated Franchise and license expenses | Refranchising gain (loss) (See Note 5) | Unallocated Other income (expense) | Other pension income (expense) (See Note 15) | Interest expense, net | Income tax provision (See Note 18) | Effective tax rate (See Note 18) | Gains/(Losses) Recognized in AOCI | 2017 | Interest rate swaps | Foreign currency contracts | Income tax benefit/(expense) |