| December 31, 2018 2017 | (in thousands) | Deferred tax assets: | Termite accrual | Insurance and contingencies | Unearned revenues | Compensation and benefits | State and foreign operating loss carryforwards | Bad debt reserve | Foreign tax credit | Other | Valuation allowance | Total deferred tax assets | Deferred tax liabilities: | Depreciation and amortization | NetPension liability | Intangibles and other | Total deferred tax liabilities | Net deferred tax assets |


| Period Total Number of Shares Purchased -1 Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly AnnouncedPlans or Programs -1-2 Dollar Value of Shares that May Yet Be Purchased Under the Plans orPrograms -1 | October 2013 | November 2013 | December 2013 | Total |


| For the Year Ended December 31, | 2011 | (In millions) | Net cash provided by (used for): | Operating activities | Investing activities | Financing activities | Net increase (decrease) in cash |


| Sales Costs   Applicable to   Sales Amortization Advanced   Projects and   Exploration Pre-Tax Income Total   Assets-1 Capital   Expenditures-1 | Year Ended December 31, 2009 | Nevada | La Herradura | Hope Bay | Other North America | North America | Yanacocha | Other South America | South America | Boddington: | Gold | Copper | Total Boddington | Other Australia/New Zealand | Batu Hijau: | Gold | Copper | Total Batu Hijau | Other Asia Pacific | Asia Pacific | Africa | Corporate and Other | Consolidated |


| 2009 2008 2007 | Diluted earnings (loss) per share | PSCo | NSP-Minnesota | NSP-Wisconsin | SPS | Equity earnings of unconsolidated subsidiaries | Regulated utility — continuing operations | Holding company and other costs | Ongoing diluted earnings per share | PSRI | Earnings per share — continuing operations | Loss per share — discontinued operations | GAAP diluted earnings per share |


| Years Ended December 31, | 2011 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Operating earnings | As of December 31 | Equity, as previously reported | Increase for reclassification of non-controlling interests | Equity, as adjusted |


Net revenues include $3.8 billion in 2017 and $739 million in 2016 related to the sale of RRPs, mainly driven by Japan.
These net revenue amounts include excise taxes billed to customers.
Excluding excise taxes, net revenues for RRPs were $3.6 billion in 2017 and $733 million in 2016.
In some jurisdictions, including Japan, we are not responsible for collecting excise taxes.
In 2017, approximately $0.9 billion of our $3.6 billion in RRP net revenues, excluding excise taxes, were from IQOS devices and accessories.
Excise taxes on products increased by $1.1 billion, due to:?
higher excise taxes resulting from changes in retail prices and tax rates ($4.6 billion), partially offset by?
favorable currency ($1.9 billion) and ?
lower excise taxes resulting from volume/mix ($1.6 billion).


Legacy Portfolios The Legacy Portfolios (both owned and serviced) include those loans originated prior to January 1, 2011 that would not have been originated under our established underwriting standards in place as of December 31, 2010.
The purchased credit-impaired (PCI) loan portfolio, as well as certain loans that met a pre-defined delinquency status or probability of default threshold as of January 1, 2011, are also included in the Legacy Portfolios.
Since determining the pool of loans to be included in the Legacy Portfolios as of January 1, 2011, the criteria have not changed for these portfolios, but will continue to be evaluated over time.
Legacy Owned Portfolio The Legacy Owned Portfolio includes those loans that met the criteria as described above and are on the balance sheet of the Corporation.
Home equity loans in this portfolio are held on the balance sheet of LAS, and residential mortgage loans in this portfolio are included as part of All Other.
The financial results of the on-balance sheet loans are reported in the segment that owns the loans or in All Other.
Total loans in the Legacy Owned Portfolio decreased $18.3 billion in 2015 to $71.6 billion at December 31, 2015, of which $26.5 billion was held on the LAS balance sheet and the remainder was included in All Other.
The decrease was largely due to payoffs and paydowns, as well as loan sales.
Legacy Serviced Portfolio The Legacy Serviced Portfolio includes loans serviced by LAS in both the Legacy Owned Portfolio and those loans serviced for outside investors that met the criteria as described above.
The table below summarizes the balances of the residential mortgage loans included in the Legacy Serviced Portfolio (the Legacy Residential Mortgage Serviced Portfolio) representing 24 percent, 24 percent and 28 percent of the total residential mortgage serviced portfolio of $491 billion, $609 billion and $719 billion, as measured by unpaid principal balance, at December 31, 2015, 2014 and 2013, respectively.
The decline in the Legacy Residential Mortgage Serviced Portfolio was due to paydowns and payoffs, and MSR and loan sales.


State and Local Rate Regulation and Fuel-Cost Recovery Retail Rates 2015 Base Rate Filing In April 2015, Entergy Arkansas filed with the APSC for a general change in rates, charges, and tariffs.
The filing notified the APSC of Entergy Arkansas’s intent to implement a forward test year formula rate plan pursuant to Arkansas legislation passed in 2015, and requested a retail rate increase of $268.4 million, with a net increase in revenue of $167 million.
The filing requested a 10.2% return on common equity.
In September 2015 the APSC staff and intervenors filed direct testimony, with the APSC staff recommending a revenue requirement of $217.9 million and a 9.65% return on common equity.
In December 2015, Entergy Arkansas, the APSC staff, and certain of the intervenors in the rate case filed with the APSC a joint motion for approval of a settlement of the case that proposed a retail rate increase of approximately $225 million with a net increase in revenue of approximately $133 million; an authorized return on common equity of 9.75%; and a formula rate plan tariff that provides a +/- 50 basis point band around the 9.75% allowed return on common equity.
A significant portion of the rate increase is related to Entergy Arkansas’s acquisition in March 2016 of Union Power Station Power Block 2 for a base purchase price of $237 million.
The settlement agreement also provided for amortization over a 10-year period of $7.7 million of previously-incurred costs related to ANO post-Fukushima compliance and $9.9 million of previously-incurred costs related to ANO flood barrier compliance.
A settlement hearing was held in January 2016.
In February 2016 the APSC approved the settlement with one exception that reduced the retail rate increase proposed in the settlement by $5 million.
The settling parties agreed to the APSC modifications in February 2016.
The new rates were effective February 24, 2016 and began billing with the first billing cycle of April 2016.
In March 2016, Entergy Arkansas made a compliance filing regarding the


| (In millions) U.S. Canada E.G. OtherAfrica Other Int'l Total | Year Ended December 31, 2015 | Future cash inflows | Future production and support costs | Future development costs | Future income tax expenses | Future net cash flows | 10% annual discount for timing of cash flows | -related to continuing operations | -related to discontinued operations | Year Ended December 31, 2014 | Future cash inflows | Future production and support costs | Future development costs | Future income tax expenses | Future net cash flows | 10% annual discount for timing of cash flows | -related to continuing operations | -related to discontinued operations | Year Ended December 31, 2013 | Future cash inflows | Future production and support costs | Future development costs | Future income tax expenses | Future net cash flows | 10% annual discount for timing of cash flows | -related to continuing operations | -related to discontinued operations |


| Principal Properties Owned: Primary Use Floor Space | Newark, DE (a) | Warstein, Germany | Londonderry, NH | San Diego, CA | San Diego, CA (b) |


| Year Ended December 31, 2009 | Other  Assets | (in millions) | Fair Value, beginning of period | Total gains or (losses) (realized/unrealized): | Included in earnings: | Realized investment gains (losses), net | Asset management fees and other income | Interest credited to policyholders’ account balances | Included in other comprehensive income (loss) | Net investment income | Purchases, sales, issuances and settlements | Foreign currency translation | Other-1 | Transfers into Level 3-2 | Transfers out of Level 3-2 | Fair Value, end of period | Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of theperiod(3): | Included in earnings: | Realized investment gains (losses), net | Asset management fees and other income | Interest credited to policyholders’ account balances | Included in other comprehensive income (loss) |


| Years Ended December 31, | (Dollars in thousands) | Interest expense incurred |


| 2011 2010  Fourth | Fourth | Commercial Relationships | Product Penetration by Number of Services | 1 Service | 2-3 Services | 4+ Services | Total revenue(in millions) |


| Land improvements 20 | Buildings | Furniture, fixtures and equipment |


| December 31, 2017 | AmortizedCost | (in millions) | Fixed maturities, held-to-maturity: | Foreign government bonds | Foreign corporate public securities | Foreign corporate private securities-5 | Residential mortgage-backed securities-3 | Total fixed maturities, held-to-maturity-5 |


| Performance Share Units Restricted Shares | Shares | Nonvested at January 1, 2007 | Granted(a) | Dividends | Forfeitures | Vested(b) | Nonvested at December 31, 2007 |


Includes Venezuela and Colombia.


| In millions 2013 2012 2011 | January 1 | Additions: | From loans sold with servicing retained | RBC Bank (USA) acquisition | Purchases | Sales | Changes in fair value due to: | Time and payoffs (a) | Other (b) | December 31 | Unpaid principal balance of loans serviced for others at December 31 |


| Assumptions Percentage  Change October 31, 2012  Increase  (Decrease)  PBO/APBO* 2013  Increase  (Decrease)  Expense | Pension | Discount rate** | Expected return on assets | OPEB | Discount rate** | Expected return on assets | Health care cost trend rate** |


| 2008 | 1st Quarter | Net sales | Gross profit | Operating profit | Net earnings | Earnings per share: | Basic | Diluted | 2007 | 1st Quarter | Net sales | Gross profit | Operating profit | Earnings from continuing operations | Net earnings | Earnings per share from continuing operations: | Basic | Diluted | Earnings per share: | Basic | Diluted |


| Estimated Sensitivity ofEconomic Value of Equity | (Dollars in millions) | Rate change: | +200 bps shock | –200 bps shock |


| For awards granted during the year ended December 31, 2008 | Expected volatility | Expected term (years) | Risk free interest rates | Dividend yield |


| (In millions) 2004 2003 | E&P | Domestic | International | Total E&P | RM&T | IG | Corporate | Total |


| Year Ended December 31, | 2015 | (In thousands) | Interest expense |


U. S.  CONTAINERBOARD net sales for 2006 were $955 million, compared with $895 million in 2005 and $950 million for 2004.
Average sales price realizations in the first quarter of 2006 began the year below first-quarter 2005 levels, but improved significantly during the second quarter and were higher than in 2005 for the remainder of the year.
Sales volumes were higher throughout 2006.
Operating profits in 2006 were more than double 2005 levels, and 68% higher than in 2004.
The favorable impacts of the higher average sales price realizations, higher sales volumes, reduced lack-of-order downtime and strong mill performance were only partially offset by higher input costs for freight, chemicals and energy.
U. S.  CONVERTING OPERATIONS net sales totaled $2.8 billion in 2006, $2.6 billion in 2005 and $2.3 billion in 2004.
Sales volumes throughout the year in 2006 were above 2005 levels, reflecting solid market demand for boxes and packaging solutions.
In the first two quarters of 2006, margins were favorable compared with the prior year as average sales prices outpaced containerboard cost increases, but average margins began to decline in the third quarter as containerboard increases outpaced the increase in box prices.
Operating profits in 2006 decreased 72% from 2005 and 86% from 2004 levels, primarily due to higher distribution, utility and raw material costs, and inventory adjustment charges.
EUROPEAN CONTAINER net sales for 2006 were $1.0 billion, compared with $883 million in 2005 and $865 million in 2004.
The increase was principally due to contributions from the Moroccan box plants acquired in the fourth quarter of 2005, although sales volumes for the rest of the business were also slightly higher.
Operating profits in 2006 were up 31% compared with 2005 and 6% compared with 2004.
This increase included a $13 million gain on the sale of property in Spain as well as the increased contributions from the Moroccan acquisition, partially offset by higher energy costs.
IN T E RNA T IONA L PA P E R D I S T R I BU T ION L IMITED, our Asian box and containerboard business, had net sales for 2006 of $182 million.
In 2005, net sales were $104 million subsequent to International Papers acquisition of a majority interest in August 2005.
This business generated a small operating profit in 2006, compared with a small loss in 2005.
Additionally during the fourth quarter, a $38 million pre-tax credit ($23 million after taxes) was recorded for refunds received from the Canadian government of duties paid by the Companys former Weldwood of Canada Limited business, and a pre-tax charge of $1 million ($1 million after taxes) was recorded for smaller adjustments of prior discontinued operation estimates.
During the third quarter of 2006, management determined there was a current expectation that, more likely than not, the Beverage Packaging and Wood Products businesses would be sold.
Based on the resulting impairment testing, pre-tax impairment charges of $115 million ($82 million after taxes) and $165 million ($165 million after taxes) were recorded to reduce the carrying values of the net assets of the Beverage Packaging and Wood Products businesses, respectively, to their estimated fair values.
Also during the 2006 third quarter, International Paper completed the sale of its interests in a Beverage Packaging operation in Japan for a pre-tax gain of $12 million ($3 million after taxes), and the sale of its Brazilian Coated Papers business to Stora Enso Oyj for approximately $420 million, subject to certain post-closing adjustments.
This business included a coated paper mill and lumber mill in Aropoti, Parana State, Brazil, as well as 50,000 hectares (approximately 124,000 acres) of forestlands in Parana.
As the Company determined that the accounting requirements under SFAS No.144 for reporting this business as a discontinued operation were met, the resulting $100 million pre-tax gain ($79 million after taxes) was recorded as a gain on sale of a discontinued operation.
Revenues, earnings and earnings per share related to the Brazilian Coated Papers business for 2006, 2005 and 2004 were as follows:


| Year ended December 31, Operating earnings Return on common equity - goodwill(c) | (in millions, except ratios) | Investment Bank | Retail Financial Services | Card Services | Commercial Banking | Treasury & Securities Services | Asset & Wealth Management | Corporate | Total |


| Net Exploratory Wells Net Development Wells | Productive | Year Ended December 31, 2010 | United States | Equatorial Guinea | Israel-1 | North Sea | China | Total | Year Ended December 31, 2009 | United States-1 | Equatorial Guinea-1 | Israel-1 | North Sea | China | Total | Year Ended December 31, 2008 | United States-1 | Equatorial Guinea-1 | North Sea | Suriname | Total |


On October 5, 2006, the Company announced a cash dividend of $0.12 per share on the Companys common stock, payable on January 4, 2007 to stockholders of record as of December 7, 2006, which will be reflected in the consolidated financial statements in the first quarter of fiscal 2007.
Note 8.
Employee Stock Benefit Plans Employee Savings and Retirement Plan The Company has a 401(k) plan that allows eligible employees to contribute up to 50% of their eligible compensation, subject to annual limits.
The Company matches a portion of the employee contributions and may, at its discretion, make additional contributions based upon earnings.
The Companys contribution expense for fiscal 2006, 2005 and 2004 was $33 million, $27 million and $21 million, respectively.
Equity Compensation Plans The Board of Directors may grant options to selected employees, directors and consultants to the Company to purchase shares of the Companys common stock at a price not less than the fair market value of the stock at the date of grant.
The 2006 Long-Term Incentive Plan (the 2006 Plan) was adopted during the second quarter of fiscal 2006 and replaced the 2001 Stock Option Plan and the 2001 Non-Employee Director Stock Option Plan and their predecessor plans (the Prior Plans).
The 2006 Plan provides for the grant of incentive and nonstatutory stock options as well as stock appreciation rights, restricted stock, restricted stock units, performance units and shares and other stock-based awards and will be the source of shares issued under the Executive Retirement Matching Contribution Plan (ERMCP).
The share reserve under the 2006 Plan is equal to the shares available for future grant under the combined plans on the date the 2006 Plan was approved by the Companys stockholders, plus an additional 65,000,000 shares for a total of approximately 280,192,000 shares reserved.
This share amount is automatically increased by the amount equal to the number of shares subject to any outstanding option under a Prior Plan that is terminated or cancelled (but not an option under a Prior Plan that expires) following the date that the 2006 Plan was approved by stockholders.
Shares that are subject to an award under the ERMCP and are returned to the Company because they fail to vest will again become available for grant under the 2006 Plan.
The Board of Directors of the Company may amend or terminate the 2006 Plan at any time.
Generally, options outstanding vest over periods not exceeding five years and are exercisable for up to ten years from the grant date.
During fiscal 2006, the Company assumed a total of approximately 3,530,000 outstanding stock options under the Flarion Technologies, Inc.  2000 Stock Option and Restricted Stock Purchase Plan, the Berkana Wireless Inc.  2002 Stock Plan and 2002 Executive Stock Plan and under the Qualphone Inc.  2004 Equity Incentive Plan (the Assumed Plans), as amended, as a result of the acquisitions (Note 11).
The Assumed Plans were suspended on the dates of acquisition, and no additional shares may be granted under those plans.
The Assumed Plans provided for the grant of both incentive stock options and non-qualified stock options.
Generally, options outstanding vest over periods not exceeding four years and are exercisable for up to ten years from the grant date.


ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK We are exposed to market risk stemming from changes in interest rates, foreign exchange rates, commodity prices and equity prices.
Changes in these factors could cause fluctuations in our earnings and cash flows.
In the normal course of business, we actively manage our exposure to these market risks by entering into various hedging transactions, authorized under our policies that place clear controls on these activities.
The counterparties in these transactions are generally highly rated institutions.
We establish credit limits for each counterparty.
Our hedging transactions include but are not limited to a variety of derivative financial instruments.
Interest Rates We manage our debt structure and our interest rate risk through the use of fixed- and floating-rate debt and derivatives.
We use interest rate swaps and forward-starting interest rate swaps to hedge our exposure to interest rate changes and to reduce volatility of our financing costs.
Generally under these swaps, we agree with a counterparty to exchange the difference between fixedrate and floating-rate interest amounts based on an agreed notional principal amount.
Our primary exposure is to U. S.  interest rates.
As of May 28, 2006, we had $7.0 billion of aggregate notional principal amount (the principal amount on which the fixed or floating interest rate is calculated) outstanding.
This includes notional amounts of offsetting swaps that neutralize our exposure to interest rates on other interest rate swaps.
See Note Six to the Consolidated Financial Statements on pages 40 through 42 in Item Eight of this report.
Foreign Currency Rates Foreign currency fluctuations can affect our net investments and earnings denominated in foreign currencies.
We primarily use foreign currency forward contracts and option contracts to selectively hedge our cash flow exposure to changes in exchange rates.
These contracts function as hedges, since they change in value inversely to the change created in the underlying exposure as foreign exchange rates fluctuate.
Our primary U. S.  dollar exchange rate exposures are with the Canadian dollar, the euro, the Australian dollar, the Mexican peso and the British pound.
Commodities Many commodities we use in the production and distribution of our products are exposed to market price risks.
We manage this market risk through an integrated set of financial instruments, including purchase orders, noncancelable contracts, futures contracts, options and swaps.
Our primary commodity price exposures are to cereal grains, sugar, dairy products, vegetables, fruits, meats, vegetable oils, and other agricultural products, as well as paper and plastic packaging materials, operating supplies and energy.
Equity Instruments Equity price movements affect our compensation expense as certain investments owned by our employees are revalued.
We use equity swaps to manage this market risk.
Value at Risk These estimates are intended to measure the maximum potential fair value we could lose in one day from adverse changes in market interest rates, foreign exchange rates, commodity prices, or equity prices under normal market conditions.
A Monte Carlo (VAR) methodology was used to quantify the market risk for our exposures.
The models assumed normal market conditions and used a 95 percent confidence level.
The VAR calculation used historical interest rates, foreign exchange rates and commodity and equity prices from the past year to estimate the potential volatility and correlation of these rates in the future.
The market data were drawn from the RiskMetricsTM data set.
The calculations are not intended to represent actual losses in fair value that we expect to incur.
Further, since the hedging instrument (the derivative) inversely correlates with the underlying exposure, we would expect that any loss or gain in the fair value of our derivatives would be generally offset by an increase or decrease in the fair value of the underlying exposures.
The positions included in the calculations were: debt; investments; interest rate swaps; foreign exchange forwards; commodity swaps, futures and options; and equity instruments.
The calculations do not include the underlying foreign exchange and commodities-related positions that are hedged by these market-risk-sensitive instruments.


those in the United States, and initial voice networks continue to be deployed in underdeveloped areas.
A majority of consumers in these markets still utilize basic wireless services, predominantly on feature phones, while advanced device penetration remains low.
In more developed urban locations within these markets, early-stage data network deployments are underway.
Carriers are focused on completing voice network build-outs while also investing in initial data networks as wireless data usage and smartphone penetration within their customer bases begin to accelerate.
In markets with rapidly evolving network technology, such as South Africa and most of the countries in Latin America where we do business, initial voice networks, for the most part, have already been built out, and carriers are focused on 3G and 4G network build outs.
Consumers in these regions are increasingly adopting smartphones and other advanced devices, and, as a result, the usage of bandwidth-intensive mobile applications is growing materially.
Recent spectrum auctions in these rapidly evolving markets have allowed incumbent carriers to accelerate their data network deployments and have also enabled new entrants to begin initial investments in data networks.
Smartphone penetration and wireless data usage in these markets are growing rapidly, which typically requires that carriers continue to invest in their networks in order to maintain and augment their quality of service.
Finally, in markets with more mature network technology, such as Germany and France, carriers are focused on deploying 4G data networks to account for rapidly increasing wireless data usage among their customer base.
With higher smartphone and advanced device penetration and significantly higher per capita data usage, carrier investment in networks is focused on 4G coverage and capacity.
We believe that the network technology migration we have seen in the United States, which has led to significantly denser networks and meaningful new business commencements for us over a number of years, will ultimately be replicated in our less advanced international markets.
As a result, we expect to be able to leverage our extensive international portfolio of approximately 104,470 communications sites and the relationships we have built with our carrier customers to drive sustainable, long-term growth.
We have master lease agreements with certain of our tenants that provide for consistent, long-term revenue and reduce the likelihood of churn.
Our master lease agreements build and augment strong strategic partnerships with our tenants and have significantly reduced colocation cycle times, thereby providing our tenants with the ability to rapidly and efficiently deploy equipment on our sites.
Property Operations New Site Revenue Growth.
During the year ended December 31, 2016, we grew our portfolio of communications real estate through the acquisition and construction of approximately 45,310 sites.
In a majority of our Asia, EMEA and Latin America markets, the revenue generated from newly acquired or constructed sites resulted in increases in both tenant and pass-through revenues (such as ground rent or power and fuel costs) and expenses.
We continue to evaluate opportunities to acquire communications real estate portfolios, both domestically and internationally, to determine whether they meet our risk-adjusted hurdle rates and whether we believe we can effectively integrate them into our existing portfolio.


| Year Ended December 31, | 2014 | % of | $Revenues | ($ in thousands) | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses |


| 2011 2010 2009 | Beginning balance | Foreign currency translation adjustments | Income tax effect relating to translation adjustments forundistributed foreign earnings | Ending balance |


products and software, as well as ongoing investment in next-generation technologies, partially offset by savings from cost-reduction initiatives.
Reorganization of business charges increased due to employee severance costs and expenses related to the exit of a facility.
SG&A expenses decreased, primarily due to lower marketing expenses and savings from cost-reduction initiatives, partially offset by increased expenditures on information technology upgrades.
As a percentage of net sales in 2007 as compared to 2006, gross margin and operating margin decreased, and SG&A expenses and R&D expenditures increased.
The segment’s backlog was $647 million at December 31, 2007, compared to $1.4 billion at December 31, 2006.
This decrease in backlog was primarily due to a decline in customer demand driven by the segment’s limited product portfolio.
The segment shipped 159.1 million units in 2007, a 27% decrease compared to shipments of 217.4 million units in 2006.
The overall decrease reflects decreased unit shipments of products for all technologies.
For the full year 2007, unit shipments: (i) decreased substantially in Asia and EMEA, (ii) decreased in North America, and (iii) increased in Latin America.
Although unit shipments by the segment decreased in 2007, total unit shipments in the worldwide handset market increased by approximately 16%.
The segment estimates its worldwide market share was approximately 14% for the full year 2007, a decrease of approximately 8 percentage points versus full year 2006.
In 2007, ASP decreased approximately 9% compared to 2006.
The overall decrease in ASP was driven primarily by changes in the product-tier and geographic mix of sales.
By comparison, ASP decreased approximately 11% in 2006 and 10% in 2005.
The segment has several large customers located throughout the world.
In 2007, aggregate net sales to the segment’s five largest customers accounted for approximately 42% of the segment’s net sales.
Besides selling directly to carriers and operators, the segment also sells products through a variety of third-party distributors and retailers, which account for approximately 33% of the segment’s net sales.
The largest of these distributors was Brightstar Corporation.
Although the U. S.  market continued to be the segment’s largest individual market, many of our customers, and more than 54% of our segment’s 2007 net sales, were outside the U. S.  The largest of these international markets were Brazil, China and Mexico.
Home and Networks Mobility Segment The Home and Networks Mobility segment designs, manufactures, sells, installs and services: (i) digital video, Internet Protocol video and broadcast network interactive set-tops, end-to-end video delivery systems, broadband access infrastructure platforms, and associated data and voice customer premise equipment to cable television and telecom service providers (collectively, referred to as the “home business”), and (ii) wireless access systems, including cellular infrastructure systems and wireless broadband systems, to wireless service providers (collectively, referred to as the “network business”).
In 2008, the segment’s net sales represented 33% of the Company’s consolidated net sales, compared to 27% in 2007 and 21% in 2006.


REPUBLIC SERVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED 2006 Plan prior to December 5, 2008 became fully vested and nonforfeitable upon the closing of the acquisition.
Awards may be granted under the 2006 Plan, as amended and restated, after December 5, 2008 only to employees and consultants of Allied Waste Industries, Inc.  and its subsidiaries who were not employed by Republic Services, Inc.  prior to such date.
At December 31, 2010, there were approximately 15.3 million shares of common stock reserved for future grants under the 2006 Plan.
Stock Options We use a binomial option-pricing model to value our stock option grants.
We recognize compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, or to the employees retirement eligible date, if earlier.
Expected volatility is based on the weighted average of the most recent one-year volatility and a historical rolling average volatility of our stock over the expected life of the option.
The risk-free interest rate is based on Federal Reserve rates in effect for bonds with maturity dates equal to the expected term of the option.
We use historical data to estimate future option exercises, forfeitures and expected life of the options.
When appropriate, separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes.
The weighted-average estimated fair values of stock options granted during the years ended December 31, 2010, 2009 and 2008 were $5.28, $3.79 and $4.36 per option, respectively, which were calculated using the following weighted-average assumptions:


| January 1, 2018 (Date of Adoption ofASU 2014-09) December 31, 2018 | Description | Intake Costs asset | Commissions asset |


| (in millions of U.S. dollars) Credit Line1 Usage Expiry Date | Unsecured Liquidity Facilities | ACE Limited2 | Unsecured Operational LOC Facilities | ACE Limited | Unsecured Capital Facilities | ACE Limited3 | Total |


(a) Includes the impact of RBC Bank (USA), which we acquired on March 2, 2012.
(b) Amounts include consolidated variable interest entities.
See Consolidated Balance Sheet in Item 8 of this Report for additional information.
(c) Amounts include assets and liabilities for which we have elected the fair value option.
See Consolidated Balance Sheet in Item 8 of this Report for additional information.
(d) Amounts include balances held with the Federal Reserve Bank of Cleveland of $30.0 billion, $31.4 billion, $11.7 billion, $3.5 billion and $.4 billion as of December 31, 2015, 2014, 2013, 2012 and 2011, respectively.
(e) Amounts include our equity interest in BlackRock.
(f) Includes long-term borrowings of $43.6 billion, $41.5 billion, $27.6 billion, $19.3 billion and $20.9 billion for 2015, 2014, 2013, 2012 and 2011, respectively.
Borrowings which mature more than one year after December 31, 2015 are considered to be long-term.
(g) Calculated as taxable-equivalent net interest income divided by average earning assets.
The interest income earned on certain earning assets is completely or partially exempt from federal income tax.
As such, these tax-exempt instruments typically yield lower returns than taxable investments.
To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments.
This adjustment is not permitted under accounting principles generally accepted in the United States of America (GAAP) on the Consolidated Income Statement.
The taxable-equivalent adjustments to net interest income for the years 2015, 2014, 2013, 2012 and 2011 were $196 million, $189 million, $168 million, $144 million and $104 million, respectively.
(h) Calculated using the regulatory capital methodology applicable to PNC during 2015 and 2014, respectively.
(i) See capital ratios discussion in the Supervision and Regulation section of Item 1 and in the Capital portion of the Consolidated Balance Sheet Review section in Item 7 of this Report for additional discussion on these capital ratios.
(j) See additional information on the pro forma ratios, the 2014 Transitional Basel III ratios and Basel I ratios in the Statistical Information (Unaudited) section in Item 8 of this Report.
(k) Pro forma ratios as of December 31, 2015, December 31, 2014 and December 31, 2013 were calculated under the standardized approach and the pro forma ratio as of December 31, 2012 was calculated under the advanced approaches.
The 2012 and 2013 ratios have not been updated to reflect the first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing tax credits.


| (Dollars in millions) 2006 2005 | Card income | Service charges | Investment and brokerage services | Investment banking income | Equity investment gains | Trading account profits | Mortgage banking income | Other income | Total noninterest income |


For fiscal year 2005, the effective tax rate includes the impact of $11.6 million tax expense associated with repatriation of approximately $185.0 million of foreign earnings under the provisions of the American Jobs Creation Act of 2004.
For fiscal year 2004, the effective tax rate reflects the tax benefit derived from higher earnings in low-tax jurisdictions.
During fiscal year 2006, primarily due to a tax accounting method change, there was a decrease of $83.2 million in the current deferred tax assets, and a corresponding increase in non-current deferred tax assets.
In the third quarter of fiscal year 2006, we changed our tax accounting method on our tax return for fiscal year 2005 with respect to the current portion of deferred revenue to follow the recognition of revenue under U. S.  generally accepted accounting principles.
This accounting method change, as well as other adjustments made to our taxable income upon the filing of the fiscal year 2005 tax return, resulted in an increase in our operating loss (NOL) carryforwards.
In May 2006, the Tax Increase Prevention and Reconciliation Act of 2005 was enacted, which provides a three-year exception to current U. S.  taxation of certain foreign intercompany income.
This provision will first apply to Synopsys in fiscal year 2007.
Management estimates that had such provisions been applied for fiscal 2006, our income tax expense would have been reduced by approximately $3 million.
In December 2006, the Tax Relief and Health Care Act of 2006 was enacted, which retroactively extended the research and development credit from January 1, 2006.
As a result, we will record an expected increase in our fiscal 2006 research and development credit of between $1.5 million and $1.8 million in the first quarter of fiscal 2007.


| December 31, | 2010 | (In millions) | Below investment grade or non-rated fixed maturity securities: | Estimated fair value | Net unrealized gain (loss) | Non-income producing fixed maturity securities: | Estimated fair value | Net unrealized gain (loss) |


ITEM 1A.
RISK FACTORS In addition to the other information provided in this report, the following risk factors should be considered when evaluating an investment in our securities.
If the circumstances contemplated by the individual risk factors materialize, our business, financial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly.
RISKS RELATING TO OUR BUSINESS Fluctuations in the financial markets could result in investment losses.
Prolonged and severe disruptions in the overall public debt and equity markets, such as occurred during 2008, could result in significant realized and unrealized losses in our investment portfolio.
Although financial markets have significantly improved since 2008, they could deteriorate in the future.
There could also be disruption in individual market sectors, such as occurred in the energy sector in recent years.
Such declines in the financial markets could result in significant realized and unrealized losses on investments and could have a material adverse impact on our results of operations, equity, business and insurer financial strength and debt ratings.
Our results could be adversely affected by catastrophic events.
We are exposed to unpredictable catastrophic events, including weather-related and other natural catastrophes, as well as acts of terrorism.
Any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations.
By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of reinsurance, were as follows:


CONSOLIDATED INCOME STATEMENT REVIEW Our Consolidated Income Statement is presented in Item 8 of this Report.
Net income for 2012 was $3.0 billion compared with $3.1 billion for 2011.
Revenue growth of 8 percent and a decline in the provision for credit losses were more than offset by a 16 percent increase in noninterest expense in 2012 compared to 2011.
Further detail is included in the Net Interest Income, Noninterest Income, Provision For Credit Losses and Noninterest Expense portions of this Consolidated Income Statement Review.


| (Awards in thousands) 2007 2006 2005 | Share awards granted | Fair value at grant date | Vesting period (in years) |


| Con Edison CECONY | (Millions of Dollars) | Service cost – including administrative expenses | Interest cost on projected benefit obligation | Expected return on plan assets | Recognition of net actuarial loss | Recognition of prior service costs | NET PERIODIC BENEFIT COST | Amortization of regulatory asset (a) | TOTAL PERIODIC BENEFIT COST | Cost capitalized | Reconciliation to rate level | Cost charged to operating expenses |


| Year ended June 30, 2008 | 2007 | Net income | Non-cash expenses | Change in receivables | Change in deferred revenue | Change in other assets and liabilities | Net cash from operating activities |


| December 31, 2016 2015 | IPALCO common stock | Colon quotas-1 | IPL preferred stock | Other common stock | DPL preferred stock | Total redeemable stock of subsidiaries |


Duration-Monitored.
For products such as whole life insurance and term life insurance that are less sensitive to interest rate risk, and for other products such as individual single premium deferred annuities, we manage interest rate risk based on a modeling process that considers the target average life, maturities, crediting rates and assumptions of policyholder behavior.
As of December 31, 2007, the weighted-average difference between the asset and liability durations on these portfolios was +.22.
This duration gap indicates that, as of this date, the sensitivity of the fair value of our assets to interest rate movements is greater than that of the fair value of our liabilities.
We attempt to monitor this duration gap consistent with our overall risk/reward tolerances.
The value of the assets in these portfolios was $17,990.9 million as of December 31, 2007.


| Payments Due by Period | (in millions) | Litigation settlements | Long-term debt obligations | Interest payments-1 | Operating lease obligations-1 | Purchase obligations-1 | Minimum royalty obligations -1 | Unrecognized tax benefits | $1,391 |


| 2015 2014 2013 | Weighted average coupon of long-term borrowings at period-end-1 | Effective average borrowing rate for long-term borrowings after swaps at period-end-1 |


| Year ended December 31 | In billions, except forper share data | Net income | Diluted earnings per share | Return on | Average commonshareholders’ equity | Average assets |


Employee-related costs including salaries and wages, group insurance, and pension expense increased $2.9 million, or 0.6%, for 2011 compared to 2010.
These employee-related costs represented 44.8% and 44.5% of operation and maintenance expenses for 2011 and 2010, respectively, and include the categories shown in the following table:


| Year Ended December 31, | 2012 | (In $ millions) | Cost of sales | Selling, general and administrative expenses |


Performance Share Units Under the 2005 ICP, the Companys Executive Leadership Team may be awarded a target number of performance share units (PSUs).
PSUs will be earned only to the extent that the Company attains certain goals relating to the Companys performance and relative total shareholder returns against peers over a three-year period.
The awards also have a three-year service condition with cliff vesting with an accelerated service condition based on age and length of service.
The actual number of PSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the target, if performance goals are significantly exceeded.
The value of each target PSU is equal to the value of one share of Ameriprise Financial common stock.
The total amount of target PSUs outstanding at the end of December 31, 2017, 2016 and 2015 was 0.2 million.
The PSUs are liability awards.
During the years ended December 31, 2017, 2016 and 2015, the value of shares settled for PSU awards was $13 million, $15 million and $27 million, respectively.


| Year ended June 30, 2009 | 2008 | Net income | Non-cash expenses | Change in receivables | Change in deferred revenue | Change in other assets and liabilities | Net cash from operating activities |


| Net sales Operating income | (Millions) | Coatings | Glass | Chemicals |


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


| ($ in millions) % earned after | 2009 | Allstate brand: | Standard auto | Non-standard auto | Homeowners | Other personal lines-1 | Total Allstate brand | Encompass brand: | Standard auto | Non-standard auto | Homeowners | Other personal lines-1 | Total Encompass brand | Allstate Protection unearned premiums | Weighted average expected term | Expected volatility | Weighted average volatility | Expected dividends | Risk-free rate |


| Approximate Number of Vehicles Average Age | Residential | Commercial | Industrial | Total |


Residential Mortgage Loan and Home Equity Loan/ Line of Credit Repurchase Obligations While residential mortgage loans are sold on a non-recourse basis, we assume certain loan repurchase obligations associated with mortgage loans we have sold to investors.
These loan repurchase obligations primarily relate to situations where PNC is alleged to have breached certain origination covenants and representations and warranties made to purchasers of the loans in the respective purchase and sale agreements.
Repurchase obligation activity associated with residential mortgages is reported in the Residential Mortgage Banking segment.
In the fourth quarter of 2013, PNC reached agreements with both FNMA and FHLMC to resolve their repurchase claims with respect to loans sold between 2000 and 2008.
PNC paid a total of $191 million related to these settlements.
PNCs repurchase obligations also include certain brokered home equity loans/lines of credit that were sold to a limited number of private investors in the financial services industry by National City prior to our acquisition of National City.
PNC is no longer engaged in the brokered home equity lending business, and our exposure under these loan repurchase obligations is limited to repurchases of loans sold in these transactions.
Repurchase activity associated with brokered home equity loans/lines of credit is reported in the Non-Strategic Assets Portfolio segment.


| 2008 2007 2006 2005 | $15,991 |


| Restricted Stock Units (In thousands) Weighted-AverageGrant Date Fair Value | Nonvested on January 1, 2017 | Conversions from performance share units | Vested and released | Canceled/forfeited | Nonvested on December 31, 2017 |


(a) Excludes $9.1 million, $6.5 million and $3.4 million in 2006, 2005 and 2004, respectively, in curtailment losses, and $8.7 million, $3.6 million and $1.4 million in 2006, 2005 and 2004, respectively, of termination benefits, in connection with cost reduction programs and facility rationalizations that were recorded in Restructuring and other charges in the consolidated statement of operations.
Also excludes $77.2 million and $14.3 million in 2006 and 2005, respectively, in curtailment losses, and $18.6 million and $7.6 million of termination benefits in 2006 and 2005, respectively, related to certain divestitures recorded in Net losses on sales and impairments of businesses held for sale in the consolidated statement of operations.


| 2003 2002 2001 | Statutory tax rate | Effects of foreign operations(a) | State and local income taxes after federal income tax effects | Other federal tax effects | Effective tax rate |


Table of Contents The Company had net deferred losses of $175 million and $240 million associated with cash flow hedges, net of taxes, recorded in AOCI as of September 28, 2013 and September 29, 2012, respectively.
Deferred gains and losses associated with cash flow hedges of foreign currency revenue are recognized as a component of net sales in the same period as the related revenue is recognized, and deferred gains and losses related to cash flow hedges of inventory purchases are recognized as a component of cost of sales in the same period as the related costs are recognized.
Deferred gains and losses associated with cash flow hedges of interest income or expense are recognized as a component of other income/ (expense), net in the same period as the related income or expense is recognized.
The Companys hedged foreign currency transactions and hedged interest rate transactions as of September 28, 2013 are expected to occur within 12 months and five years, respectively.
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent two-month time period.
Deferred gains and losses in AOCI associated with such derivative instruments are reclassified immediately into other income and expense.
Any subsequent changes in fair value of such derivative instruments are reflected in other income and expense unless they are re-designated as hedges of other transactions.
The Company did not recognize any significant net gains or losses related to the loss of hedge designation on discontinued cash flow hedges during 2013, 2012 and 2011.
The Companys unrealized net gains and losses on net investment hedges, included in the cumulative translation adjustment account of AOCI, were not significant as of September 28, 2013 and September 29, 2012.
The ineffective portions of and amounts excluded from the effectiveness test of net investment hedges are recorded in other income and expense.
The gain/loss recognized in other income and expense for foreign currency forward and option contracts not designated as hedging instruments was not significant during 2013, 2012 and 2011, respectively.
These amounts represent the net gain or loss on the derivative contracts and do not include changes in the related exposures, which generally offset a portion of the gain or loss on the derivative contracts.


| As of December | $ in millions | Compensation and benefits | Noncontrolling interests1 | Income tax-related liabilities | Employee interests in consolidated funds | Subordinated liabilities issued by consolidated VIEs | Accrued expenses and other2 | Total |


TEST & MEASUREMENT The Companys Test & Measurement segment offerings help customers design cutting-edge innovations, keep their businesses up and running and safeguard their network operations.
Danaher's instrument business offers test, measurement and monitoring products that are used in electronic design, manufacturing and advanced technology development, as well as for installation, service and maintenance of electrical, industrial, electronic and calibration applications.
Danaher's communications business is a leading provider of products and solutions used in the design, deployment, monitoring and security of traditional, virtualized, mobile and cloud-based networks operated by communications service providers, hosting service providers, enterprises and government agencies worldwide.
Customers for these products and services include manufacturers of electronic instruments; service, installation and maintenance professionals; manufacturers who design, develop, manufacture and deploy network equipment; and service providers who implement, maintain and manage communications networks and services.
Also included in the Test & Measurement segment are the Companys mobile tool and wheel service businesses.


Accounting for Uncertainty in Income Taxes See Results of Operations - Provision for Income Taxes above for our discussion on accounting for uncertainty in income taxes.
Royalties We have certain royalty commitments associated with the licensing of certain offerings and products.


| Less than 12 months 12 months or more Total | Fair  Value | (in millions) | December 31, 2013 | U.S. Treasury and other U.S. government corporations and agencies: | U.S. Treasury and agency obligations | Mortgage-backed securities | Tax-exempt municipal securities | Mortgage-backed securities: | Residential | Commercial | Asset-backed securities | Corporate debt securities | Total debt securities | December 31, 2012 | U.S. Treasury and other U.S. government corporations and agencies: | U.S. Treasury and agency obligations | Mortgage-backed securities | Tax-exempt municipal securities | Mortgage-backed securities: | Residential | Commercial | Asset-backed securities | Corporate debt securities | Total debt securities |


| Year Ended December 31, | 2015 | Enterprise net interest: | Spread | Margin (net yield on interest-earning assets) | Ratio of enterprise interest-earning assets to enterprise interest-bearing liabilities | Return on average: | Total assets | Total shareholders’ equity | Average total shareholders’ equity to average total assets |


| Pension Benefits   as of December 31, Postretirement Benefits   as of December 31, | 2009 | (In percentages) | Discount rate obligations: | US plans | International plans | Combined | Rate of compensation increase: | US plans | International plans | Combined |


Accruing Loans Past Due 60 To 89 Days


| Retained Earnings (In thousands) | Balance, December 30, 2017, as previously reported | Cumulative effect adjustment from the adoption of new accounting standards: | Revenue from Contracts with Customers (Topic 606)* | Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities | Income taxes (Topic 740): Intra-entity Transfers of Assets Other Than Inventory | Balance, December 30, 2017, as adjusted | Net Income | Balance, December 29, 2018 |


D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Financial Services: The Company’s mortgage subsidiary, DHI Mortgage, has a mortgage repurchase facility that is accounted for as a secured financing.
The mortgage repurchase facility provides financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to the counterparties against the transfer of funds by the counterparties, thereby becoming purchased loans.
DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third-party purchasers in the secondary market or within specified time frames from 45 to 60 days in accordance with the terms of the mortgage repurchase facility.
The total capacity of the facility is $600 million; however, the capacity increases, without requiring additional commitments, to $725 million for approximately 30 days at each quarter end and to $800 million for approximately 45 days at fiscal year end.
The capacity can also be increased to $1.0 billion subject to the availability of additional commitments.
The maturity date of the facility is February 22, 2019.
As of September 30, 2018, $758.6 million of mortgage loans held for sale with a collateral value of $735.6 million were pledged under the mortgage repurchase facility.
As a result of advance paydowns totaling $97.9 million, DHI Mortgage had an obligation of $637.7 million outstanding under the mortgage repurchase facility at September 30, 2018 at a 4.1% annual interest rate.
The mortgage repurchase facility is not guaranteed by D. R.  Horton, Inc.  or any of the subsidiaries that guarantee the Company’s homebuilding debt.
The facility contains financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable ratio of debt to tangible net worth and its minimum required liquidity.
These covenants are measured and reported to the lenders monthly.
At September 30, 2018, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility.
In the past, DHI Mortgage has been able to renew or extend its mortgage credit facility at a sufficient capacity and on satisfactory terms prior to its maturity and obtain temporary additional commitments through amendments to the credit agreement during periods of higher than normal volumes of mortgages held for sale.
The liquidity of the Company’s financial services business depends upon its continued ability to renew and extend the mortgage repurchase facility or to obtain other additional financing in sufficient capacities.


| Fiscal2011 Fiscal2010 Fiscal2009 % Change2011-2010 % Change2010-2009 | Creative and Interactive Solutions | Percentage of total revenue | Digital Media Solutions | Percentage of total revenue | Knowledge Worker | Percentage of total revenue | Enterprise | Percentage of total revenue | Omniture | Percentage of total revenue | Print and Publishing | Percentage of total revenue | Total revenue |


| (in millions) Corporate Small Business-2 Public Other-4 Consolidated | Balance at December 31, 2014-1 | Foreign currency translation | Acquisition | Balance at December 31, 2015-1 | Foreign currency translation | CDW Advanced Services Allocation-3 | Balance at December 31, 2016-1 | Foreign currency translation | Balances as of December 31, 2017-1 |


| Loss ratio 75.6 60.1 63.4 15.5 -3.3 | Acquisition ratio | General operating expense ratio | Expense ratio | Combined ratio | Adjustments for accident year loss ratio, as adjusted | and accident year combined ratio, as adjusted: | Catastrophe losses and reinstatement premiums | Prior year development net of premium adjustments | Accident year loss ratio, as adjusted | Accident year combined ratio, as adjusted |


Bristol-Myers Squibb 36 RESULTS OF OPERATIONS The following discussion of the Company’s results of continuing operations excludes the results related to the Oncology Therapeutics Network (OTN) business, which were previously presented as a separate segment, and has been segregated from continuing operations and reflected as discontinued operations for all periods presented.
See “—Discontinued Operations” below.


ITEM 3.
Legal Proceedings.
We are involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters.
In connection with these matters, we assess, on a regular basis, the probability and range of possible loss based on the developments in these matters.
A liability is recorded in the financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated.
Because litigation is inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events.
We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures.
The amount of ultimate loss may differ from these estimates.
Each matter presents its own unique circumstances, and prior litigation does not necessarily provide a reliable basis on which to predict the outcome, or range of outcomes, in any individual proceeding.
Because of the uncertainties related to the occurrence, amount, and range of loss on any pending litigation or claim, we are currently unable to predict their ultimate outcome, and, with respect to any pending litigation or claim where no liability has been accrued, to make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome.
In the event opposing litigants in outstanding litigations or claims ultimately succeed at trial and any subsequent appeals on their claims, any potential loss or charges in excess of any established accruals, individually or in the aggregate, could have a material adverse effect on our business, financial condition, results of operations, and/or cash flows in the period in which the unfavorable outcome occurs or becomes probable, and potentially in future periods.


| December 31, 2016 | (Dollars in millions) | Securities borrowed or purchased under agreements to resell-1 | Securities loaned or sold under agreements to repurchase | Other | Total | December 31, 2015 | Securities borrowed or purchased under agreements to resell-1 | Securities loaned or sold under agreements to repurchase | Other | Total |


| Home Equity (a) (b) Residential RealEstate (a) (b) 1st Liens (c) | December 31, 2011 - in millions | Current estimated LTV ratios (d) (e) | Greater than or equal to 125% and updated FICO scores: | Greater than 660 | Less than or equal to 660 | Missing FICO | Greater than or equal to 100% to less than 125% and updated FICO scores: | Greater than 660 | Less than or equal to 660 | Missing FICO | Greater than or equal to 90% to less than 100% and updated FICO scores: | Greater than 660 | Less than or equal to 660 | Missing FICO | Less than 90% and updated FICO scores: | Greater than 660 | Less than or equal to 660 | Missing FICO | Missing LTV and updated FICO scores: | Greater than 660 | Less than or equal to 660 | Missing FICO | Total Home Equity and Residential Real Estate Loans | In millions | 2012 | 2013 | 2014 | 2015 | 2016 and thereafter | Total (a) | Moody’s | PNC | Senior debt | Subordinated debt | Preferred stock | PNC Bank | Senior debt | Subordinated debt | Long-term deposits | Short-term deposits | Short-term notes |


| Years Ended December 31, | 2015 | Dollars inMillions | Segments:-1 | Corporate | Public | Other-2 | Headquarters-3 | Total Income from operations |


| Year Ended December 31 % Change in | $ in millions | Sales | Operating income | Operating margin rate |


| (in 000s) | Year ended April 30, | Balance, beginning of the year | Additions based on tax positions related to prior years | Reductions based on tax positions related to prior years | Additions based on tax positions related to the current year | Reductions related to settlements with tax authorities | Expiration of statute of limitations | Foreign currency translation | Other | Balance, end of the year |


| Total Number ofShares (or Units)Purchased1 Average Price Paidper Share (or Unit)2 Total Number ofShares (or Units)Purchased as Part ofPublicly AnnouncedPlans or Programs3 Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs3 | October 1 - 31 | November 1 - 30 | December 1 - 31 | Total |


(f) Reflects $75 million, $68 million, $74 million and $85 million in 2011, 2012, 2013 and 2014, respectively, related to the adoption of Accounting Standards Update (ASU) No.2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.
” See Note C to the financial statements in Item 8.
(g) Reflects $266 million, $296 million, $122 million and $152 million in 2011, 2012, 2013, 2014, respectively, related to the adoption of ASU No.2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.
” See Note L to the financial statements in Item 8.


CAPITAL RESOURCES AND LIQUIDITY.
During 2009, stockholders equity increased from $2.5 billion to $2.9 billion.
We repurchased nearly 2.3 million common shares for $67 million in 2009.
Tangible book value is $2.2 billion at December 31, 2009, and our cash and cash equivalents and our mutual fund investment holdings total $1.4 billion.
Given the availability of these financial resources, we do not maintain an available external source of liquidity.
On January 20, 2010, we purchased a 26% equity interest in UTI Asset Management Company and an affiliate for $142.4 million.
We funded the acquisition from our cash holdings.
In addition to the pending UTI acquisition, we had outstanding commitments to fund other investments totaling $35.4 million at December 31, 2009.
We presently anticipate funding 2010 property and equipment expenditures of about $150 million from our cash balances and operating cash inflows.


Risk Monitoring and Limits The risk monitoring responsibilities, owned by the business units, include ensuring compliance with market risk limits and escalation and remediation of limit breaches.
Such activities must be reported to the ERM Market Risk team by the relevant business unit.
This monitoring approach is aligned with our overall risk limits framework.
To control our exposure to market risk, we rely on a three-tiered hierarchy of limits that the CMRO closely monitors and reports to our CRO, senior management and risk committees.
See Risk Appetite, Limits, Identification, and Measurement  Risk Limits herein for further information on our three-tiered hierarchy of limits.
LIQUIDITY RISK MANAGEMENT Liquidity risk is defined as the risk that our financial condition will be adversely affected by the inability or perceived inability to meet our short-term cash, collateral or other financial obligations.
Failure to appropriately manage liquidity risk can result in insolvency, reduced operating flexibility, increased costs, reputational harm and regulatory action.
AIG and its legal entities seek to maintain sufficient liquidity during both the normal course of business and under defined liquidity stress scenarios to ensure that sufficient cash will be available to meet the obligations as they come due.
AIG Parent liquidity risk tolerance levels are designed to allow it to meet our financial obligations for a minimum of six- months under a liquidity stress scenario.
We maintain liquidity limits and minimum coverage ratios designed to ensure that funding needs are met under varying market conditions.
If we project that we will breach these tolerances, we will assess and determine appropriate liquidity management actions.
However, the market conditions in effect at that time may not permit us to achieve an increase in liquidity sources or a reduction in liquidity requirements.
Risk Identification The following sources of liquidity and funding risks could impact our ability to meet short-term financial obligations as they come due.  ?
Market/Monetization Risk: Assets may not be readily transformed into cash due to unfavorable market conditions.
Market liquidity risk may limit our ability to sell assets at reasonable values to meet liquidity needs.  ?
Cash Flow Mismatch Risk: Discrete and cumulative cash flow mismatches or gaps over short-term horizons under both expected and adverse business conditions may create future liquidity shortfalls.  ?
Event Funding Risk: Additional funding may be required as the result of a trigger event.
Event funding risk comes in many forms and may result from a downgrade in credit ratings, a market event, or some other event that creates a funding obligation or limits existing funding options.  ?
Financing Risk: We may be unable to raise additional cash on a secured or unsecured basis due to unfavorable market conditions, AIG-specific issues, or any other issue that impedes access to additional funding.


| Year Ended | September 30, 2007 | ($ in 000's) | Revenues: | Institutional Sales Commissions: | Equity | Fixed Income | Underwriting Fees | Mergers & Acquisitions Fees | Private Placement Fees | Trading Profits | Raymond James Tax Credit Funds | Interest | Other | Total Revenue | Interest Expense | Net Revenues | Non-Interest Expenses | Sales Commissions | Admin & Incentive Comp and Benefit Costs | Communications and Information Processing | Occupancy and Equipment | Business Development | Clearance and Other | Total Non-Interest Expense | Income Before Taxes and Minority Interest | Minority Interest | Pre-tax Earnings |


| Global Banking Total Corporation | (Dollars in millions) | Products | Advisory | Debt issuance | Equity issuance | Gross investment banking fees | Self-led | Total investment banking fees |


| Year ended December 31, (in millions)(a) 2005 2004 2003 | Net gains on sales of loans held for sale | Lower of cost or fair value adjustments |


| December 31,(in millions) 2010 2009 | Assets: | Fixed maturity securities | Deferred policy acquisition costs | Mortgage and other loans receivable, net | Equity securities | Other invested assets | Short-term investments | Separate account assets | Other assets | Assets of businesses held for sale | Flight equipment* | Total assets held for sale | Liabilities: | Future policy benefits for life and accident and health insurance contracts | Policyholder contract deposits | Separate account liabilities | Other long-term debt | Other liabilities | Total liabilities held for sale |


| December 31, | 2011 | (in millions) | Income taxes receivable—current | Income taxes receivable—noncurrent | Total income taxes receivable | Income taxes payable—current | Income taxes payable—noncurrent | Total income taxes payable | Year EndedDecember 31, | (in millions) | Cost of products sold | Selling, general and administrative expenses | Research and development expenses | 122 | Income tax benefit | $87 | Net income (loss) per common share - basic | Net income (loss) per common share - assuming dilution |


M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements  (Continued) (a) Net interest income is the difference between actual taxable-equivalent interest earned on assets and interest paid on liabilities by a segment and a funding charge (credit) based on the Companys internal funds transfer pricing methodology.
Segments are charged a cost to fund any assets (e. g.  loans) and are paid a funding credit for any funds provided (e. g.  deposits).
The taxable-equivalent adjustment aggregated $20,833,000 in 2007, $19,667,000 in 2006 and $17,311,000 in 2005 and is eliminated in All Other net interest income and income tax expense (benefit).
(b) Including the impact in the All Other category of the merger-related expenses described in note 2.
The Business Banking segment provides deposit, lending, cash management and other financial services to small businesses and professionals through the Companys banking office network and several other delivery channels, including business banking centers, telephone banking, Internet banking and automated teller machines.
The Commercial Banking segment provides a wide range of credit products and banking services to middle-market and large commercial customers, largely within the markets the Company serves.
Among the services provided by this segment are commercial lending and leasing, letters of credit, deposit products and cash management services.
The Commercial Real Estate segment provides credit services which are secured by various types of multifamily residential and commercial real estate and deposit services to its customers.
Activities of this segment include the origination, sales and servicing of commercial real estate loans.
The Discretionary Portfolio segment includes securities, residential mortgage loans and other assets; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and offshore branch deposits.
This segment also provides foreign exchange services to customers.
The Residential Mortgage Banking segment originates and services residential mortgage loans for consumers and sells substantially all of those loans in the secondary market to investors or to the Discretionary Portfolio segment.
The segment periodically purchases servicing rights to loans that have been originated by other entities.
This segment also originates and services loans to developers of residential real estate properties.
Residential mortgage loans held for sale are included in the Residential Mortgage Banking segment.
The Retail Banking segment offers a variety of services to consumers through several delivery channels that include banking offices, automated teller machines, telephone banking and Internet banking.
The All Other category includes other operating activities of the Company that are not directly attributable to the reported segments as determined in accordance with SFAS No.131, the difference between the provision for credit losses and the calculated provision allocated to the reportable segments, goodwill and core deposit and other intangible assets resulting from acquisitions of financial institutions, M&Ts equity in the earnings of BLG, merger-related expenses resulting from acquisitions, the net impact of the Companys internal funds transfer pricing methodology, eliminations of transactions between reportable segments, certain nonrecurring transactions, the residual effects of unallocated support systems and general and administrative expenses, and the impact of interest rate risk management strategies.
The amount of intersegment activity eliminated in arriving at consolidated totals was included in the All Other category as follows:


| Years Ended December 31,(in millions) 2012 2011 | Interest rate contracts:(a) | Loss recognized in earnings on derivatives | Gain recognized in earnings on hedged items(b) | Foreign exchange contracts:(a) | Loss recognized in earnings on derivatives | Gain recognized in earnings on hedged items | Years Ended December 31,(in millions) | Interest rate contracts(a): | Gain (loss) recognized in OCI on derivatives | Gain (loss) reclassified from Accumulated OCI into earnings(b) |


| (in thousands) | Cash paid, net of cash acquired | Fair value of assumed vested or earned stock awards | Acquisition related costs | Total purchase price consideration |


| Balance, December 31, 2008 $846,258 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2009 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2010 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2011 |


| 30 September 2018 2017 | Gross Deferred Tax Assets | Retirement benefits and compensation accruals | Tax loss carryforwards | Tax credits and other tax carryforwards | Reserves and accruals | Currency losses | Other | Valuation allowance | Deferred Tax Assets | Gross Deferred Tax Liabilities | Plant and equipment | Unremitted earnings of foreign entities | Partnership and other investments | Intangible assets | Other | Deferred Tax Liabilities | Net Deferred Income Tax Liability | 2014 | 4th | (In thousands, except per share amounts) | Revenue-1 | Cost of revenue | Net income-1 (2) (3) | Net income per share - basic-1 (2) (3) | Net income per share - diluted-1 (2) (3) |


| September 30, | 2006 | (In millions) | Warranty liability, beginning of year | Warranties issued | Changes in liability for pre-existing warranties | Settlements made | Warranty liability, end of year |


| As of December 31, | (In millions) | Institutional: | U.S. | Non-U.S. | Commercial real estate: | U.S. | Total loans and leases | Average loans and leases |


| Pension plans-1 Postretirement benefit plans-1 | U.S. plans-2 | In millions of dollars | Contributions made by the Company | Benefits paid directly by the Company |


| Period Amount Coupon Rate | Year ended December 31, 2018: | July 16, 2018-1 | November 8, 2018 | Year ended December 31, 2017: | May 1, 2017 | July 27, 2017-2 | Year ended December 31, 2016: | February 1, 2016 | September 15, 2016 | November 30, 2016-3 | November 30, 2016-3 |


business subsequent to the acquisition.
The liabilities for these payments are classified as Level 3 liabilities because the related fair value measurement, which is determined using an income approach, includes significant inputs not observable in the market.
Financial Assets and Liabilities Not Measured at Fair Value Our debt is reflected on the Consolidated Balance Sheets at cost.
Based on market conditions as of December 31, 2018 and 2017, the fair value of our credit agreement borrowings reasonably approximated the carrying values of $1.7 billion and $2.0 billion, respectively.
In addition, based on market conditions, the fair values of the outstanding borrowings under the receivables facility reasonably approximated the carrying values of $110 million and $100 million at December 31, 2018 and December 31, 2017, respectively.
As of December 31, 2018 and December 31, 2017, the fair values of the U. S.  Notes (2023) were approximately $574 million and $615 million, respectively, compared to a carrying value of $600 million at each date.
As of December 31, 2018 and December 31, 2017, the fair values of the Euro Notes (2024) were approximately $586 million and $658 million compared to carrying values of $573 million and $600 million, respectively.
As of December 31, 2018, the fair value of the Euro Notes (2026/28) approximated the carrying value of $1.1 billion.
The fair value measurements of the borrowings under our credit agreement and receivables facility are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions with similar terms and maturities.
We estimated the fair value by calculating the upfront cash payment a market participant would require at December 31, 2018 to assume these obligations.
The fair value of our U. S.  Notes (2023) is classified as Level 1 within the fair value hierarchy since it is determined based upon observable market inputs including quoted market prices in an active market.
The fair values of our Euro Notes (2024) and Euro Notes (2026/28) are determined based upon observable market inputs including quoted market prices in markets that are not active, and therefore are classified as Level 2 within the fair value hierarchy.


| Owned and Leased Capability MW-1 | Company | Entergy Arkansas | Entergy Gulf States Louisiana | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | Total |


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements Fair Value of Financial Instruments The table below presents the carrying amount and fair value by fair value hierarchy level of certain financial instruments that are not reported at fair value.
The financial instruments presented below are reported at carrying value on the Company’s Consolidated Statements of Financial Position.
In some cases, as described below, the carrying amount equals or approximates fair value.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Fair Value of Cash Instruments by Level The tables below present cash instrument assets and liabilities at fair value by level within the fair value hierarchy.
In the tables below: · Cash instrument assets and liabilities are included in “Financial instruments owned, at fair value” and “Financial instruments sold, but not yet purchased, at fair value,” respectively.
· Cash instrument assets are shown as positive amounts and cash instrument liabilities are shown as negative amounts.


| December 31, 2017 December 31, 2016 | In millions of dollars, except ratios | Common Equity Tier 1 Capital | Tier 1 Capital | Total Capital (Tier 1 Capital + Tier 2 Capital)(1) | Total Risk-Weighted Assets | Credit Risk | Market Risk | Operational Risk | Common Equity Tier 1 Capital ratio-2 | Tier 1 Capital ratio-2 | Total Capital ratio-2 |


| Year Ended December 31 | 2018 | Statutory rate | State income taxes, net of federal tax benefit | Foreign earnings taxed at rates other than the U.S. statutory rate | Foreign currency effects/remeasurement | Income tax adjustment to filed returns | Tax benefit on U.S. biodiesel credits | Tax benefit on U.S. qualified production activity deduction | Tax on global intangible low-taxed income | Tax benefit on foreign derived intangible income deduction | U.S. tax reform impacts | Valuation allowances | Other | Effective income tax rate |


| February 16, 2016 October 1, 2015 February 9, 2015 | (In millions) | Floaters: | Ultra-Deepwater (a) | Deepwater | Mid-Water | Total Floaters | Jack-ups | Total |


| Interest Rate Contracts Notional Amount of Underlying Debt Variable Rate Received Year of Transaction Maturity Fair Value | Dollars in Millions | Swaps associated with: | 4.00% Notes due 2008 | 5.25% Notes due 2013 | 4.375% €500 Million EUR Notes due 2016 | 4.625% €500 Million EUR Notes due 2021 | 7.15% Notes due 2023 | 5.875% Notes due 2036 | $3,912 |


During the second quarter of 2016, the Joint Committee on Taxation finalized its review of the U. S.  Federal examinations of fiscal 2008 through calendar 2010.
The completion of the review did not have a material impact on the firm’s effective income tax rate.
The examinations of 2011 and 2012 began in 2013.
The firm has been accepted into the Compliance Assurance Process program by the IRS for each of the tax years from 2013 through 2017.
This program allows the firm to work with the IRS to identify and resolve potential U. S.  federal tax issues before the filing of tax returns.
The 2013 through 2015 tax years remain subject to post-filing review.
Research and Development


| December 31, 2008 Carrying Amounts Estimated Fair Value 2007 Carrying Amounts Estimated Fair Value | Marketable Securities | Notes Payable | Mortgages Payable | Construction Payable | Mandatorily Redeemable Minority Interests (termination dates ranging from 2019 – 2027) |


| December 31 Average Balance | (Dollars in millions) | Assets | Federal funds sold and securities purchased under agreements to resell | Trading account assets | Debt securities | Loans and leases, net of allowance for loan and lease losses | All other assets | Total assets | Liabilities | Deposits | Federal funds purchased and securities sold under agreements to repurchase | Trading account liabilities | Commercial paper and other short-term borrowings | Long-term debt | All other liabilities | Total liabilities | Shareholders’ equity | Total liabilities and shareholders’ equity |


Snap-on Business Solutions is a world leader in automotive parts and service information.
Its products are aimed at assisting original equipment manufacturers (OEMs) and their dealers to enhance their service operations.
Business Solutions products include integrated software, services and systems that transform complex technical data for parts catalogs into easily accessed electronic information (electronic parts catalogs).
Other products and services include warranty management systems and analytics to help dealerships manage and track the complex process of warranty claims management.
Over 35,000 automotive dealerships around the world use Business Solutions electronic parts catalogs, which are available in 26 different languages and support 15 automotive manufacturers and 31 brands.
Business Solutions products are also sold to over 85,000 dealers in the power equipment and power sports markets.
See Note 2 to the Consolidated Financial Statements for further information on the Snap-on Business Solutions acquisition.
Information Available on the Companys Web Site Additional information regarding Snap-on and its products is available on the companys Web site at www.
snapon.
com.
Snap-on is not including the information contained on its Web site as a part of, or incorporating it by reference into, this Annual Report on Form 10-K.  Snap-ons Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Definitive Proxy Statements on Schedule 14A, Current Reports on Form 8-K, and any amendments to those reports, are made available to the public at no charge, other than an investors own Internet access charges, through the Investor Information section of the companys Web site at www.
snapon.
com/investor.
Snap-on makes such material available on its Web site as soon as reasonably practicable after it electronically files such material with, or furnishes it to, the Securities and Exchange Commission (SEC).
Copies of any materials the company files with the SEC can also be obtained free of charge through the SECs Web site at www.
sec.
gov.
The SECs Public Reference Room can be contacted at 100 F Street, N. E. , Washington, D. C.  20549, or by calling 1-800-732-0330.
In addition, the companys (i) charters for the Audit, Corporate Governance and Nominating, and Organization and Executive Compensation committees of the companys Board of Directors; (ii) Corporate Governance Guidelines; and (iii) Code of Business Conduct and Ethics are available on Snapons Web site.
Snap-on will also post any amendments to these documents, or information about any waivers granted to directors or executive officers with respect to the Code of Business Conduct and Ethics, on the companys Web site at www.
snapon.
com.
These documents are also available in print upon written request directed to the Corporate Secretary, 2801 80th Street, Kenosha, Wisconsin 53143.


| 2014 2013 2012 | Range of risk-free interest rate | Weighted average risk-free interest rate | Expected life of shares | Range of expected volatility of underlying stock price over the option period | Weighted average expected volatility of underlying stock price | Expected annual dividend yield |


| Three Months Ended | Dec. 31, 2014 | (Unaudited, in thousands) | Reconciliation of Net Loss to Non-GAAP Net Income (Loss): | Net loss | Stock-based compensation expense | Amortization of acquired intangible assets | Non-cash interest expense related to convertible notes | Income tax effects related to acquisitions | Non-GAAP net income (loss) |


Item 12.
Security Ownership of Certain Beneficial Owners and Management The information required by Item 12 appearing under the caption Voting Securities and Principal Shareholders, in the companys proxy statement to be filed pursuant to Regulation 14A within 120 days after December 31, 2006, is incorporated herein by reference.
Securities authorized for issuance under equity compensation plans are summarized below:


For the year ended December 31, 2006, we realized net gains of $15 million on sales of available-forsale securities.
Unrealized losses of $7 million were included in other comprehensive income at December 31, 2005, net of deferred taxes of $4 million, related to these sales.


| Revenues $444,121 $45,830 $$91,538 $27,537 $609,026 | Production costs -1 | Transportation | E&P corporate | Exploration expenses | DD&A and valuation provision | Income (loss) | Income tax expense | Result of continuing operations from producing activities (excluding corporate overhead and interest costs) |


Non-nuclear Generating Stations In November 2016, Entergy sold its 50% membership interest in Top Deer Wind Ventures, LLC, a windpowered electric generation joint venture owned in the Entergy Wholesale Commodities segment and accounted for as an equity method investment.
Entergy sold its 50% membership interest in Top Deer for $0.5 million and realized a pre-tax loss of $0.2 million.
Entergy Wholesale Commodities includes the ownership, or interests in joint ventures that own, the following non-nuclear power plants:


Table of Contents ADOBE INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) certain states and foreign jurisdictions to fully utilize available tax credits and other attributes.
The deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized.
We provide U. S.  income taxes on the earnings of foreign subsidiaries unless the subsidiaries earnings are considered permanently reinvested outside the United States or are exempted from taxation as a result of the new territorial tax system.
To the extent that the foreign earnings previously treated as permanently reinvested are repatriated, the related U. S.  tax liability may be reduced by any foreign income taxes paid on these earnings.
As of November 30, 2018, the cumulative amount of earnings upon which U. S.  income taxes have not been provided is approximately $275 million.
The unrecognized deferred tax liability for these earnings is approximately $57.8 million.
As of November 30, 2018, we have net operating loss carryforwards of approximately $881.1 million for federal and $349.7 million for state.
We also have federal, state and foreign tax credit carryforwards of approximately $8.8 million, $189.9 million and $14.9 million, respectively.
The net operating loss carryforward assets and tax credits will expire in various years from fiscal 2019 through 2036.
The state tax credit carryforwards and a portion of the federal net operating loss carryforwards can be carried forward indefinitely.
The net operating loss carryforward assets and certain credits are reduced by the valuation allowance and are subject to an annual limitation under Internal Revenue Code Section 382, the carrying amount of which are expected to be fully realized.
As of November 30, 2018, a valuation allowance of $174.5 million has been established for certain deferred tax assets related to certain state and foreign assets.
For fiscal 2018, the total change in the valuation allowance was $80.9 million.
Accounting for Uncertainty in Income Taxes During fiscal 2018 and 2017, our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands):


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS related contingent consideration, and any subsequent changes in fair value using a discounted probabilityweighted approach.
This approach takes into consideration Level 3 unobservable inputs including probability assessments of expected future cash flows over the period in which the obligation is expected to be settled and applies a discount factor that captures the uncertainties associated with the obligation.
Changes in these unobservable inputs could significantly impact the fair value of the liabilities recorded in the accompanying consolidated balance sheets and operating expenses in the consolidated statements of operations.
As of December 31, 2012, the Company estimates the value of all potential acquisition-related contingent consideration required payments to be between zero and $43.6 million.
During the years ended December 31, 2012 and 2011, the fair value of the contingent consideration changed as follows (in thousands):


| Shares(in thousands) Fair ValuePrice perShare* | Non-vested performance awards at beginning of year | Granted | Vested | Cancellations and other | Non-vested performance awards at end of year |


($125 million) and higher maintenance outage costs ($18 million).
Additionally, operating profits in 2012 include costs of $184 million associated with the acquisition and integration of Temple-Inland, mill divestiture costs of $91 million, costs associated with the restructuring of our European Packaging business of $17 million and a $3 million gain for other items, while operating costs in 2011 included costs associated with signing an agreement to acquire Temple-Inland of $20 million and a gain of $7 million for other items.


ITEM 6.
SELECTED FINANCIAL DATA Con Edison


| Year Ended December 31, | 2008 | (in millions) | Stock-based compensation expense included in | General and administrative expense | Exploration expense and other | Total stock-based compensation expense | Tax benefit recognized |


| Tier 1 risk-based capital Total risk-based capital Tier 1 leverage capital | (dollar amounts in thousands) | Huntington Bancshares Incorporated | Amount | Ratio | The Huntington National Bank | Amount | Ratio |


| 2002-2 2001 2000 1999 1998 | Consolidated Statement of Operations Data: | Net sales | Gross profit | Operating profit-3 | (Loss) earnings before income taxes | Net (loss) earnings | Series A convertible preferred stock dividends-4 | (Loss) earnings per common share(5) | Basic | Diluted | Consolidated Balance Sheet Data: | Working capital (net liability) net asset(6) | Total assets-6 | Long-term debt, less current portion-6 | Series A convertible preferred stock-4 | Total shareholders' equity | Other Data: | EBIT-7 | Depreciation and amortization-3 | EBITDA-7 | Capital expenditures | Total Cash | Total Cash   Dividends Paid  (In millions) | Common Share | 2006 | 2007 | 2008 | 2009 | 2010 | Total |


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


| December 31, | 2010 | (in millions) | Commercial paper | Other recourse short-term debt | Total short-term debt | December 31, | 2010 | (in millions) | 3.31% notes payable, due 2011 | 3.63% notes payable, due 2011 | 7.875% notes payable, due 2014 | 3.76% notes payable, due 2015 | 8.875% notes payable, due 2019 | 6.05% notes payable, due 2036 | 8% surplus notes payable, due 2044 | Non-recourse mortgages and notes payable | Other mortgages and notes payable | Total long-term debt |


| Years Ended December 31, | 2017 | Statutory net gain from operations | Statutory net income (loss) | Statutory net income (loss) |


| December 31, 2008 December 31, 2007 | Fixed income | ($ in millions except number of issues) | Category (I): Unrealized loss less than 20% of cost(1) | Number of issues | Fair value | Unrealized | Category (II): Unrealized loss greater than or equal to 20% of cost for a period of less than 6 consecutive months(1) | Number of issues | Fair value | Unrealized | Category (III): Unrealized loss greater than or equal to 20% of cost for a period of 6 or more consecutive months, but less than 12consecutive months(1) | Number of issues | Fair value | Unrealized | Category (IV): Unrealized loss greater than or equal to 20% of cost for 12 or more consecutive months(1) | Number of issues | Fair value | Unrealized | Total number of issues | Total fair value-2 | Total unrealized losses |


The following table summarizes net loan charge-offs by loan portfolio class and total net loan charge-offs to total average loans:


At December 31, 2008, Roper had approximately $11.9 million of U. S.  federal net operating loss carryforwards.
If not utilized, these carryforwards will expire in years 2023 through 2027.
Additionally, Roper had foreign tax credit carryforwards and research and development credit carryforwards.
Roper has not recognized a valuation allowance since management has determined that it is more likely than not that the results of future operations will generate suffi cient taxable income to realize these deferred tax assets.
Th e Company provides income taxes for unremitted earnings of foreign subsidiaries that are not considered permanently reinvested overseas.
As of December 31, 2008, the approximate amount of earnings of foreign subsidiaries that the Company considers permanently reinvested and for which deferred taxes have not been provided was approximately $237.8 million.
Because of the availability of U. S.  foreign tax credits, it is not practicable to determine the U. S.  federal income tax liability that would be payable if such earnings were not reinvested indefi nitely.
Th e Company adopted the provisions of FIN 48, Accounting for Uncertainty in Income Taxes  an Interpretation of FASB Statement No.109, on January 1, 2007.
Th is Interpretation requires the Company to recognize in the consolidated fi nancial statements only those tax positions determined to be more likely than not of being sustained upon examination based on the technical merits of the positions.
A reconciliation of the beginning and ending amount of unrecognized tax benefi ts is as follows (in thousands):


| Other Postretirement Benefits | Pension   Benefits | (In millions) | 2010 | 2011 | 2012 | 2013 | 2014 | 2015-2019 |


| (Dollar amounts in millions) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs  (Level 3) December 31, 2010 | Liabilities: | Borrowings of consolidated VIEs | Collateral liability under securities lending agreements | Other liabilities-1 | Total liabilities measured at fair value |


| Year ended December 31,(in millions,except per share amounts) 2012 2011 2010 | Basic earnings per share | Net income | Less: Preferred stock dividends | Net income applicable to common equity | Less: Dividends and undistributed earnings allocated to participating securities | Net income applicable to common stockholders | Total weighted-average basic shares outstanding | Net income per share | Diluted earnings per share | Net income applicable to common stockholders | Total weighted-average basic shares outstanding | Add: Employee stock options, SARs and warrants(a) | Total weighted-average diluted shares outstanding(b) | Net income per share |