Certain of the Company’s derivative contracts contain provisions that adjust the level of collateral the Company is required to post based on the Company’s debt rating (or based on the financial strength of the Company’s life insurance subsidiaries for contracts in which those subsidiaries are the counterparty).
Additionally, certain of the Company’s derivative contracts contain provisions that allow the counterparty to terminate the contract if the Company’s debt does not maintain a specific credit rating (generally an investment grade rating) or the Company’s life insurance subsidiary does not maintain a specific financial strength rating.
If these termination provisions were to be triggered, the Company’s counterparty could require immediate settlement of any net liability position.
At December 31, 2014 and 2013, the aggregate fair value of derivative contracts in a net liability position containing such credit contingent provisions was $416 million and $1.0 billion, respectively.
The aggregate fair value of assets posted as collateral for such instruments as of December 31, 2014 and 2013 was $416 million and $959 million, respectively.
If the credit contingent provisions of derivative contracts in a net liability position at December 31, 2014 and 2013 were triggered, the aggregate fair value of additional assets that would be required to be posted as collateral or needed to settle the instruments immediately would have been nil and $56 million, respectively.17.


| Location Approximate Square Footage | Alpharetta, Georgia | Jersey City, New Jersey | Arlington, Virginia | Sandy, Utah | Menlo Park, California | New York, New York | Chicago, Illinois-1 |


Indemnification and repurchase claims are typically settled on an individual loan basis through make-whole payments or loan repurchases; however, on occasion we may negotiate pooled settlements with investors.
In connection with pooled settlements, we typically do not repurchase loans and the consummation of such transactions generally results in us no longer having indemnification and repurchase exposure with the investor in the transaction.
For the first and second-lien mortgage balances of unresolved and settled claims contained in the tables below, a significant amount of these claims were associated with sold loans originated through correspondent lender and broker origination channels.
In certain instances when indemnification or repurchase claims are settled for these types of sold loans, we have recourse back to the correspondent lenders, brokers and other third-parties (e. g. , contract underwriting companies, closing agents, appraisers, etc.
).
Depending on the underlying reason for the investor claim, we determine our ability to pursue recourse with these parties and file claims with them accordingly.
Our historical recourse recovery rate has been insignificant as our efforts have been impacted by the inability of such parties to reimburse us for their recourse obligations (e. g. , their capital availability or whether they remain in business) or factors that limit our ability to pursue recourse from these parties (e. g. , contractual loss caps, statutes of limitations).
Origination and sale of residential mortgages is an ongoing business activity, and, accordingly, management continually assesses the need to recognize indemnification and repurchase liabilities pursuant to the associated investor sale agreements.
We establish indemnification and repurchase liabilities for estimated losses on sold first and second-lien mortgages for which indemnification is expected to be provided or for loans that are expected to be repurchased.
For the first and secondlien mortgage sold portfolio, we have established an indemnification and repurchase liability pursuant to investor sale agreements based on claims made, demand patterns observed to date and/or expected in the future, and our estimate of future claims on a loan by loan basis.
To estimate the mortgage repurchase liability arising from breaches of representations and warranties, we consider the following factors: (i) borrower performance in our historically sold portfolio (both actual and estimated future defaults), (ii) the level of outstanding unresolved repurchase claims, (iii) estimated probable future repurchase claims, considering information about file requests, delinquent and liquidated loans, resolved and unresolved mortgage insurance rescission notices and our historical experience with claim rescissions, (iv) the potential ability to cure the defects identified in the repurchase claims (rescission rate), and (v) the estimated severity of loss upon repurchase of the loan or collateral, make-whole settlement, or indemnification.
See Note 24 Commitments and Guarantees in the Notes To Consolidated Financial Statements in Item 8 of this Report for additional information.
The following tables present the unpaid principal balance of repurchase claims by vintage and total unresolved repurchase claims for the past five quarters.


HASBRO, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements — (Continued) (Thousands of Dollars and Shares Except Per Share Data) agreement, $7,203 and $14,235, respectively, of which are included in prepaid expenses and other current assets and $58,814 and $63,247, respectively, of which are included in other assets.
The Company and the Network are also parties to an agreement under which the Company will provide the Network with an exclusive first look in the U. S.  to license certain types of programming developed by the Company based on its intellectual property.
In the event the Network licenses the programming from the Company to air, it is required to pay the Company a license fee.
As of December 25, 2016 and December 27, 2015 the Company’s investment in the Network totaled $242,397 and $242,932, respectively.
The Company’s share in the (earnings) loss of the Network for the years ended December 25, 2016, December 27, 2015 and December 28, 2014 totaled $(23,764), $(19,045) and $9,187, respectively and is included as a component of other (income) expense, net in the accompanying consolidated statements of operations.
In 2014, the Company’s share in the loss of the Network included charges related to its restructuring totaling $17,278.
The Company also enters into certain other transactions with the Network including the licensing of television programming and the purchase of advertising.
During 2016, 2015 and 2014, these transactions were not material.


The allocation of the allowance for loan losses on originated loans at December 31, 2016 reflects management’s assessment of credit risk and probable loss within each portfolio.
This assessment is based on a variety of internal and external factors including, but not limited to, the likelihood and severity of loss, portfolio growth and related risk characteristics, and current economic conditions.
With respect to the originated portfolio, an allocation of a portion of the allowance to one loan segment does not preclude its availability to absorb losses in another loan segment.
Management believes that the level of the allowance for loan losses at December 31, 2016 is appropriate to cover probable losses.


Pension Plan Assets Pension assets include public equities, government and corporate bonds, cash and cash equivalents, private real estate funds, private partnerships, hedge funds, and other assets.
Plan assets are held in a master trust and overseen by the Company's Investment Committee.
All assets are externally managed through a combination of active and passive strategies.
Managers may only invest in the asset classes for which they have been appointed.
The Investment Committee is responsible for setting the policy that provides the framework for management of the plan assets.
The Investment Committee has set the minimum and maximum permitted values for each asset class in the Company's pension plan master trust for the year ended December 31, 2018, as follows:


Depreciation on capital leases is recorded as depreciation expense in our results of operations.
As of May 26, 2019, we have issued guarantees and comfort letters of $681.6 million for the debt and other obligations of consolidated subsidiaries, and guarantees and comfort letters of $133.9 million for the debt and other obligations of non-consolidated affiliates, mainly CPW.
In addition, off-balance sheet arrangements are generally limited to the future payments under non-cancelable operating leases, which totaled $482.6 million as of May 26, 2019.


11: ASSET RETIREMENT OBLIGATIONS CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them.
No market risk premiums were included in CMS Energys and Consumers ARO fair value estimates since reasonable estimates could not be made.
If a five percent market risk premium were assumed, CMS Energys and Consumers ARO liabilities would be $17 million higher at December 31, 2014 and $16 million higher at December 31, 2013.
In 2013, Consumers updated the ARO for asbestos abatement to reflect a revised estimate of future obligations at its steam electric generating units.
In 2014, Consumers recorded the initial estimate of $3 million for closure of the Cross Winds?
Energy Park.
If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made.
CMS Energy and Consumers have not recorded liabilities for assets that have insignificant cumulative disposal costs, such as substation batteries.
Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:


| 2005 2004 2003 | Buildings and facilities | Aircraft and parts | Vehicles | Information technology | $2,187 |


Interest Rate Risk Our cash equivalents and investments are subject to market risk due to changes in interest rates.
Interest rate movements affect the interest income we earn on cash equivalents and investments and the value of those investments.
Should the Federal Reserve Target Rate increase by 25 basis points from the level of July 31, 2009, the value of our investments would decrease by approximately $0.9 million.
Should the Federal Reserve Target Rate increase by 100 basis points from the level of July 31, 2009, the value of our investments would decrease by approximately $3.6 million.
We are also exposed to the impact of changes in interest rates as they affect our $500 million revolving credit facility.
Advances under the credit facility accrue interest at rates that are equal to Citibank’s base rate or the London InterBank Offered Rate (LIBOR) plus a margin that ranges from 0.18% to 0.575% based on our senior debt credit ratings.
Consequently, our interest expense would fluctuate with changes in the general level of these interest rates if we were to borrow any amounts under the credit facility.
At July 31, 2009, no amounts were outstanding under the credit facility.


| Securities with unrealized losses | Less than 12 months | Gross | Fair | 2005 (in millions) | Available-for-sale securities | U.S. government and federal agency obligations: | U.S. treasuries | Mortgage-backed securities | Agency obligations | Collateralized mortgage obligations | U.S. government-sponsored enterpriseobligations | Obligations of state and political subdivisions | Debt securities issued by non-U.S. governments | Corporate debt securities | Equity securities | Other, primarily asset-backed securities | Total securities with unrealized losses |


The effective income tax rate differed from the U. S.  federal income tax rate of 35% in 2017, 2016 and 2015 as presented below:


| 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012 | LKQ Corporation | NASDAQ Stock Market (U.S.) Index | Peer Group | Amount of gain (loss) recognized in net income on derivatives for the year ended December 31, | Derivatives not designated as hedging instruments | (in millions) | Interest rate contracts | Foreign exchange contracts | Equity contracts | Credit contracts | Other contracts | Total | December 31, 2012 | (in millions) | European Union | United Kingdom | Australia/New Zealand | Asia-Pacific | Latin America | Other countries -1 | Total |


Credit reimbursement TSS reimburses the IB for credit portfolio exposures managed by the IB on behalf of clients that the segments share.
At the time of the Merger, the reim- bursement methodology was revised to be based upon pretax earnings, net of the cost of capital related to those exposure


| In millions 2005 2004 2003 | Sales | Operating Profit: | Forest Resources –Sales of Forestlands | Harvest & Recreational Income | Forestland Expenses | Real Estate Operations | Wood Products | Operating Profit |


of $4.0 million from price redeterminations for several of our military contracts as well as an increase of $16.6 million in our HOS revenues associated with contract growth, most notably in New York City.
Operation and maintenance.
Operation and maintenance expense decreased $12.6 million, or 4.5%, for the year ended December 31, 2013, compared to the year ended December 31, 2012.
The following table provides information regarding operation and maintenance expense for the years ended December 31, 2013, and 2012, by major expense category:


Managements discussion and analysis 120 JPMorgan Chase & Co. /2014 Annual Report WHOLESALE CREDIT PORTFOLIO The Firms wholesale businesses are exposed to credit risk through underwriting, lending and trading activities with and for clients and counterparties, as well as through various operating services such as cash management and clearing activities.
A portion of the loans originated or acquired by the Firms wholesale businesses is generally retained on the balance sheet.
The Firm distributes a significant percentage of the loans it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk.
The wholesale credit environment remained favorable throughout 2014 driving an increase in client activity.
Growth in loans retained was driven primarily by activity in Commercial Banking, while growth in lending-related commitments reflected increased activity in both the Corporate & Investment Bank and Commercial Banking.
Discipline in underwriting across all areas of lending continues to remain a key point of focus, consistent with evolving market conditions and the Firms risk management activities.
The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable; and of industry, product and client concentrations.
During the year, wholesale criticized assets decreased from 2013, including a reduction in nonaccrual loans by 40%.


| 2012 2011 2010 | Balance as of January 1 | Current year increases | Write-offs, net of recoveries and other | Balance as of December 31 | Accumulated Other Comprehensive Income (Loss) Attributable to Prudential Financial, Inc. | Foreign Currency Translation Adjustment | (in millions) | Balance, December 31, 2006 | Change in component during year | Balance, December 31, 2007 | Change in component during year | Balance, December 31, 2008 | Change in component during year | Impact of adoption of guidance for other-than- temporary impairments of debt securities-2 | Balance, December 31, 2009 |


| (Dollars in millions, except per share data) 2013 2012 2011 2010 2009 | Operations | Revenues: | Commercial Airplanes | Defense, Space & Security:-1 | Boeing Military Aircraft | Network & Space Systems | Global Services & Support | Total Defense, Space & Security | Boeing Capital-2 | Other segment-2 | Unallocated items and eliminations | Total revenues | General and administrative expense | Research and development expense | Other income/(loss), net | Net earnings from continuing operations | Net gain/(loss) on disposal of discontinued operations, net of tax | Net earnings | Basic earnings per share from continuing operations | Diluted earnings per share from continuing operations | Cash dividends declared | Per share | Additions to Property, plant and equipment | Depreciation of Property, plant and equipment | Year-end workforce | Financial position at December 31 | Total assets | Working capital | Property, plant and equipment, net | Cash and cash equivalents | Short-term and other investments | Total debt | Customer financing assets | Shareholders’ equity-3 | Per share | Common shares outstanding (in millions)(4) | Contractual Backlog: | Commercial Airplanes | Defense, Space & Security:-1 | Boeing Military Aircraft | Network & Space Systems | Global Services & Support | Total Defense, Space & Security | Total contractual backlog | Amount (In Millions) | 2013 net revenue | Retail electric price | Asset retirement obligation | Volume/weather | MISO deferral | Net wholesale revenue | Other | 2014 net revenue |


Results of Operations
(1) Revenues from rental property increased primarily from the combined effect of (i) the acquisition of operating properties during 2008 and 2009, providing incremental revenues for the year ended December 31, 2009 of $29.3 million, as compared to the corresponding period in 2008 and (ii) the completion of certain development and redevelopment projects and tenant buyouts providing incremental revenues of approximately $7.4 million, for the year ended December 31, 2009, as compared to the corresponding period in 2008, which was partially offset by (iii) a decrease in revenues of approximately $8.5 million for the year ended December 31, 2009, as compared to the corresponding period in 2008, primarily resulting from the sale of certain properties during 2008 and 2009, and (iv) an overall occupancy decrease from the consolidated shopping center portfolio from 93.1% at December 31, 2008 to 92.2% at December 31, 2009.
(2) Rental property expenses increased primarily due to (i) operating property acquisitions during 2008 and 2009, (ii) the placement of certain development properties into service, which resulted in lower capitalization of carry costs, and (iii) an increase in snow removal costs during 2009 as compared to 2008, partially offset by (iv) a decrease in insurance costs during 2009 as compared to 2008 and (v) operating property dispositions during 2008 and 2009.
(3) Depreciation and amortization increased primarily due to (i) operating property acquisitions during 2008 and 2009, (ii) the placement of certain development properties into service and (iii) tenant vacates, partially offset by operating property dispositions during 2008 and 2009.
Mortgage and other financing income decreased $3.3 million to $15.0 million for the year ended December 31, 2009, as compared to $18.3 million for the corresponding period in 2008.
This decrease is primarily due to a decrease in interest income during 2009 resulting from the repayment of certain mortgage receivables during 2009 and 2008.
Management and other fee income decreased approximately $5.2 million for the year ended December 31, 2009, as compared to the corresponding period in 2008.
This decrease is primarily due to a decrease in property management fees of approximately $5.8 million for 2009, due to lower revenues attributable to lower occupancy and the sale of certain properties during 2008 and 2009, partially offset by an increase in other transaction related fees of approximately $0.6 million recognized during 2009.
General and administrative expenses decreased approximately $6.1 million for the year ended December 31, 2009, as compared to the corresponding period in 2008.
This decrease is primarily due to a reduction in force during 2009 as a result of implementing the Company’s core business strategy of focusing on owning and operating shopping centers and a shift away from certain non-strategic assets along with a lack of transactional activity.
Interest, dividends and other investment income decreased approximately $23.0 million for the year ended December 31, 2009, as compared to the corresponding period in 2008.
This decrease is primarily due to (i) a decrease in realized gains of approximately $8.2 million during 2009 resulting from the sale of certain marketable securities during the corresponding period in 2008 as compared to 2009, and (ii) a decrease in interest and dividend income of approximately $14.8 million during 2009, as compared to the corresponding period in 2008, primarily resulting from the sale of investments in marketable securities and reductions in dividends declared from certain marketable securities during 2009 and 2008.
Other expense, net decreased approximately $1.3 million to $0.9 million for the year ended December 31, 2009, as compared to $2.2 million for the corresponding period in 2008.
This decrease is primarily due to (i) the receipt of fewer shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008,


| 2004 2003 2002 | Quarter | First | Second | Third | Fourth |


| Net Exploratory Wells Net Development Wells | Productive | Year Ended December 31,2008 | United States | Northern Region | Southern Region | West Africa | North Sea | Israel | Suriname | Total | Year Ended December 31,2007 | United States | Northern Region | Southern Region | West Africa | North Sea | Israel | Argentina-2 | Total | Year Ended December 31,2006 | United States | Northern Region | Southern Region | West Africa | North Sea | Argentina-2 | Total |


| ($ in millions) 2012 2011 2010 | Gardasil | Influenza vaccines | Other viral vaccines | RotaTeq | Hepatitis vaccines | Other vaccines | $1,084 |


Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources – Subsidiaries – (Continued) In 2016 and 2015, Boardwalk Pipeline declared and paid distributions to its common unitholders of record of $0.40 per common unit and an amount to the general partner on behalf of its 2% general partner interest.
In February of 2017, the Partnership declared a quarterly cash distribution to unitholders of record of $0.10 per common unit.
In January of 2017, Boardwalk Pipeline completed a public offering of $500 million aggregate principal amount of 4.5% senior notes due July 15, 2027 and plans to use the proceeds to refinance future maturities of debt and to fund growth capital expenditures.
Initially, the proceeds were used to reduce outstanding borrowings under its revolving credit facility.
As of February 13, 2017, Boardwalk Pipeline had $65 million of outstanding borrowings and $1.4 billion of available borrowing capacity under its revolving credit facility.
During 2016, Boardwalk Pipeline extended the maturity date of the revolving credit facility by one year to May 26, 2021.
Boardwalk Pipeline has in place a subordinated loan agreement with a subsidiary of the Company under which it could borrow up to $300 million until December 31, 2018.
Boardwalk Pipeline had no outstanding borrowings under the subordinated loan agreement.
For 2016 and 2015, Boardwalk Pipeline’s capital expenditures were $590 million and $375 million, consisting of a combination of growth and maintenance capital.
Boardwalk Pipeline expects total capital expenditures to be approximately $850 million in 2017, primarily related to growth projects and pipeline system maintenance expenditures.
Boardwalk Pipeline anticipates that for 2017 its existing capital resources, including its revolving credit facility, subordinated loan and cash flows from operating activities, will be adequate to fund its operations.
Boardwalk Pipeline may seek to access the capital markets to fund some or all capital expenditures for growth projects, acquisitions or for general business purposes.
Boardwalk Pipeline’s ability to access the capital markets for equity and debt financing under reasonable terms depends on its financial condition, credit ratings and market conditions.


| For the fiscal years ended October 31, | 2019 | Dollars in millions | Net revenue | Loss from operations | Loss from operations as a % of net revenue | Total | Long-term debt (including future interest payments) | Contingent acquisition payments | Capital lease obligations | Operating leases | One-time transition tax liability | Guaranty on Refund Advance loans | Total contractual cash obligations |


| 10/30/2011 10/28/2012 10/27/2013 10/26/2014 10/25/2015 10/30/2016 | Applied Materials | S&P 500 Index | RDG Semiconductor Composite Index | (In millions) | Long-term debt including interest-1 (2) | Minimum operating lease payments-1 | Purchase obligations-1 | Income tax obligations | Total | Account Party/Borrower(s) | (In millions) | MetLife, Inc. | Exeter Reassurance Company Ltd., MetLife, Inc., & Missouri Reinsurance (Barbados), Inc. | Exeter Reassurance Company Ltd. | MetLife Reinsurance Company of South Carolina & MetLife, Inc. | MetLife Reinsurance Company of Vermont & MetLife, Inc. | MetLife Reinsurance Company of Vermont & MetLife, Inc. | Total |


| Years Ended December 31, | Revenues | (in millions) | Domestic: | Orthodontic | GP | International | Total Invisalign | Other revenue | Total Revenue |


A rollforward of the fair value measurements for trading and other securities measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs for the year ended December 31, 2011, is as follows:


approximately $51 per ounce, decreased production and higher mining costs.
Mining costs were higher primarily due to sound abatement costs and increased contract maintenance, drilling rates, fuel and tire usage costs.
Gold ounces sold decreased in 2006 from 2005, due to lower mill throughput (harder ore), a decrease in mill ore grade and a decrease in roaster throughput resulting from a higher sulfur to gold ratio and adverse weather conditions.
Costs applicable to sales per ounce increased due to lower production and increased labor, diesel and contract services.
Milling costs also increased due to mill maintenance costs and higher grinding costs due to the harder ore.  Costs applicable to sales were also impacted by the change in accounting for open pit waste removal costs.
In 2005, $9 of mining costs was deferred which reduced Costs applicable to sales by $23 per ounce.
Jundee, Australia.
Gold ounces sold decreased in 2007 compared to 2006 as a result of lower production, partially offset by increased inventory sales.
Mill throughput decreased by 26% due to the consolidation of milling operations into one plant, partially offset by 28% higher mill ore grade.
Open pit mining concluded in the fourth quarter of 2007.
Underground mining operations will continue in 2008.
Costs applicable to sales per ounce increased due to the strengthening of the Australian dollar, which increased Costs applicable to sales by approximately $42 per ounce, lower production, and higher underground mining and electricity generation costs.
Gold ounces sold decreased in 2006 from 2005, due to a 4% decrease in tons milled and a 6% decrease in mill ore grade.
The decrease in tons milled was attributable to severe weather conditions, flooding and an extended mill shutdown in the first half of the year.
Costs applicable to sales per ounce increased due to lower gold production and higher maintenance costs, partially offset by reduced mining activity.
Waihi, New Zealand.
Gold ounces sold decreased in 2007 compared to 2006 as a result of the transition to mining the Martha open pit south layback and Favona underground in 2007.
Costs applicable to sales per ounce increased in 2007 compared to 2006 as a result of the strengthening of the New Zealand dollar which increased Costs applicable to sales by approximately $51 per ounce and lower production.
Gold ounces sold decreased in 2006 from 2005, primarily due to a 4% decrease in mill ore grade and a 20% decrease in mill throughput due to reduced open pit mining activity and the commencement of Favona ore treatment which requires finer grinding.
Costs applicable to sales per ounce increased due to the decrease in gold production.
Development of the Boddington project was approximately 62% complete at December 31, 2007, with mill start-up still expected in late 2008 or early 2009.
The Company completed a definitive estimate to update the Companys share of Boddington capital costs, which are now expected to be between $1,400 and $1,600, up from $900 to $1,100, including the adverse impact of the strengthening Australian dollar exchange rate.
In 2007, the Company commenced a hedging program to reduce the variability of the Australian denominated capital expenditures related to Boddington.
As of December 31, 2007, we have hedged 32% of our forecasted Australian denominated capital expenditures in 2008.
Batu Hijau Operations


| 2014 2013 | December 31, (in millions) | Loans(a) | Nonaccrual loans | Loans reported as trading assets | Loans | Subtotal | All other performing loans | Loans reported as trading assets | Loans | Total loans | Long-term debt | Principal-protected debt | Nonprincipal-protected debt(b) | Total long-term debt | Long-term beneficial interests | Nonprincipal-protected debt(b) | Total long-term beneficial interests |


| Years Ended December 31 2018 2017 | Alliance revenue | Cost of sales-1 | Selling, general and administrative | Research and development-2 | December 31 | Receivables from AstraZeneca included inOther current assets | Payables to AstraZeneca included inAccrued and other current liabilities-3 | Payables to AstraZeneca includedOther Noncurrent Liabilities-3 |


NOTE 16 COMMITMENTS AND CONTINGENCIES The Company is obligated under various operating leases for office and manufacturing space, machinery, and equipment.
Future minimum lease payments under non-cancelable capital and operating leases (with initial or remaining lease terms in excess of one year) as of December 31:


NOTE 8 Goodwill and Intangible Assets Goodwill The table below presents goodwill balances by reporting unit and All Other at December 31, 2018 and 2017.
The reporting units utilized for goodwill impairment testing are the operating segments or one level below.


| Payment Due by Period | Total | Notes | Operating lease obligations | Capital lease obligations | Purchase obligations | Total |


| December 31, | (Dollar amounts in millions) | Balance sheet data: | Cash and cash equivalents | Goodwill and intangible assets, net | Total assets-5 | Less: | Separate account assets-6 | Collateral held under securities lendingagreements-6 | Consolidated investment vehicles-7 | Adjusted total assets | Short-term borrowings | Convertible debentures | Long-term borrowings | Total borrowings | Total stockholders’ equity |


Table of Contents Noble Energy, Inc.  Index to Financial Statements Notes to Consolidated Financial Statements 115 Undeveloped Leasehold Costs Undeveloped leasehold costs as of December 31, 2016 totaled $2.2 billion, including $2.1 billion related to onshore US unproved properties, $105 million related to deepwater Gulf of Mexico unproved properties, and $32 million related to international unproved properties.
We evaluate our exploration opportunities as part of our periodic impairment review.
If, based upon a change in exploration plans, availability of capital and suitable rig and drilling equipment, resource potential, comparative economics, changing regulations and/or other factors, an impairment is indicated, we record either (1) impairment expense related to individually significant leases or (2) a decrease in the valuation of our pool of individually insignificant leases.
During 2016, we completed our geological evaluation of certain deepwater Gulf of Mexico and offshore Falkland Islands leases and licenses and determined that several, representing $127 million of undeveloped leasehold cost, should be relinquished or exited.
As a result, we recognized $93 million of undeveloped leasehold impairment expense and recorded a $34 million decrease in our valuation pool of individually insignificant leases.
Note 7.
Equity Method Investments Equity Method Investments Equity method investments are included in other noncurrent assets in the consolidated balance sheets, and our share of earnings is reported as income from equity method investees in the consolidated statements of operations.
Our share of income taxes incurred directly by the equity method investees is reported in income from equity method investees and is not included in our income tax provision in our consolidated statements of operations.
Investments accounted for under the equity method consist primarily of the following: ?50% interest in CONE Gathering LLC (CONE Gathering), which owns and operates natural gas gathering facilities servicing our properties in the Marcellus Shale; ?33.5% interest in CONE Midstream Partners, LP (CONE Midstream), a public master limited partnership, which constructs, owns and operates natural gas gathering and other midstream energy assets in support of our Marcellus Shale activities; ?45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea; and ?28% interest in Alba Plant LLC (Alba Plant), which owns and operates a liquefied petroleum gas processing plant in Equatorial Guinea.
CONE Midstream Dropdown Transaction In fourth quarter 2016, CONE Midstream, completed its first acquisition of midstream assets (dropdown) from CONE Gathering since its initial public offering in 2014.
CONE Gathering subsequently distributed $70 million cash and additional CONE Midstream common units to us.
We currently own 7,110,638 common units and 14,581,560 subordinated units of CONE Midstream.
Equity method investments are as follows:


| 2013 2012 2011 | Dividend yield | Expected volatility | Risk-free interest rate | Expected life (years) | Exercise price | Grant date fair value per share |


| Year Ended December 31, 2016 Year Ended December 31, 2015 | Life | (in millions) | Life Planner | Gibraltar Life: | Life Consultants | Banks-2 | Independent Agency | Subtotal | Total |


| (in millions) Balance at December 31, 2006 Issuances Maturities and Repayments Effect of Foreign Exchange Other Changes Balance at  December 31,  2007 | AIG | Notes and bonds payable | Junior subordinated debt | Loans and mortgages payable | MIP matched notes and bonds payable | Series AIGFP matched notes and bonds payable | AIGFP | GIAs | Notes and bonds payable and hybrid financial instrument liabilities | Loans and mortgages payable | AIGLH notes and bonds payable | Liabilities connected to trust preferred stock | ILFC notes and bonds payable | ILFC junior subordinated debt | AGF notes and bonds payable | AGF junior subordinated debt | AIGCFG loans and mortgages payable | Other subsidiaries | Total |


Purchased Intangible Assets The following table summarizes the Company’s aggregate purchased intangible assets, all of which are contract or program related intangible assets:


Segment Disclosures The Company evaluates its business and allocates resources based on its reportable business segments: (i)?senior housing triple-net, (ii) SHOP, (iii) life science and (iv) medical office.
The Company has non-reportable segments that are comprised primarily of the Company’s debt investments, hospital properties, unconsolidated joint ventures, and U. K.  investments.
The accounting policies of the segments are the same as those described under Summary of Significant Accounting Policies (see Note?2).
During the years ended December?31, 2018, 2017 and 2016, 22, 25 and 17 senior housing triple-net facilities, respectively, were transferred to the Company’s SHOP segment.
When an asset is transferred from one segment to another, the results associated with that asset are included in the original segment until the date of transfer.
Results generated after the transfer date are included in the new segment.
GBP-denominated borrowings due primarily to fluctuations in the GBP to USD exchange rate are reported in accumulated other comprehensive income (loss) as the hedging relationship is considered to be effective.
The balance in accumulated other comprehensive income (loss) (loss of $2 million at December 31, 2018) will be reclassified to earnings when the Company sells its remaining U. K. ?investments.
Note 23.


| 2004 2003 | Per Share | First quarter | Second quarter | Third quarter | Fourth quarter | Total |


| Accruing | In millions | December 31, 2011 | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate (b) | Credit card | Other consumer (c) | Total | Percentage of total loans | December 31, 2010 | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate (b) | Credit card | Other consumer (c) | Total | Percentage of total loans |


Other Assets The Company accounts for its interest in PennyMac as an equity method investment, which is included in other assets on the consolidated statements of financial condition.
The carrying value and fair value of the Companys interest (approximately 20% or 16 million shares and non-public units) was approximately $342 million and $348 million, respectively, at December 31, 2017 and approximately $301 million and $259 million, respectively, at December 31, 2016.
The fair value of the Companys interest reflected the PennyMac stock price at December 31, 2017 and 2016, respectively (a Level 1 input).
The fair value of the Companys interest in the non-public units held of PennyMac is based on the stock price of the PennyMac public securities at December 31, 2017 and 2016.12.


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


Derivatives netting The following tables present, as of December 31, 2018 and 2017, gross and net derivative receivables and payables by contract and settlement type.
Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement.
Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.
In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash).
These amounts mitigate counterparty credit risk associated with the Firms derivative instruments, but are not eligible for net presentation: ?
collateral that consists of non-cash financial instruments (generally U. S.  government and agency securities and other G7 government securities) and cash collateral held at third party custodians, which are shown separately as Collateral not nettable on the Consolidated balance sheets in the tables below, up to the fair value exposure amount.  ?
the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and ?
collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.


| Net tangible assets acquired as of May 2, 2006 $24,800 | In-process research and development | Developed technology and know how | Customer relationship | Trade name | Deferred income taxes | Goodwill | Estimated Purchase Price |


Contractual Obligations: Presented in the following table are CMS Energy’s and Consumers’ contractual obligations for each of the periods presented.
The table excludes all amounts classified as current liabilities on CMS Energy’s and Consumers’ consolidated balance sheets, other than the current portion of long-term debt, capital leases, and financing obligation


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


American International Group, Inc.  and Subsidiaries Survival Ratios-Asbestos and Environmental The following table presents AlG's survival ratios for asbestos and environmental claims for year-end 2006,2005 and 2004.
The survival ratio is derived by dividing the year end carried loss reserve by the average payments for the three most recent calendar years for these claims.
Therefore, the survival ratio is a simplistic measure estimating the number of years it would be before the current ending loss reser ves for these claims would be paid off using recent year average payments.
The December 31, 2006 survival ratio is lower than the ratio at December 31,2005because the more recent periods included in the rolling average reflect higher claims payments.
Many factors, such as aggressive settlement procedures, mix of business and level of coverage provided, have a significant effect on the amount of asbestos and environmental reserves and payments and the resultant survivalratio.
Thus, caution should be exercised in attempting to deter- mine reserve adequacy for these claims based simply on this survival ratio.
AlG's survival ratios for asbestos and environmental claims, separately and combined were based upon a three-year average payment.
These ratios for the years ended December 31,2006,2005 and 2004 were as follows:


(1) Equity securities primarily consist of investments in common and preferred stocks and mutual fund interests.
Such securities include private equity securities with an estimated fair value of $599 million and $238 million at December 31, 2007 and 2006, respectively.
The Company is not exposed to any significant concentrations of credit risk in its equity securities portfolio.
The Company is exposed to concentrations of credit risk related to U. S.  Treasury securities and obligations of U. S.  government corporations and agencies.
Additionally, at December 31, 2007 and 2006, the Company had exposure to fixed maturity securities backed by sub-prime mortgages with estimated fair values of $2.2 billion and $3.0 billion, respectively, and unrealized losses of $219 million and $5 million, respectively.
These securities are classified within asset-backed securities in the immediately preceding table.
At December 31, 2007, 32% have been guaranteed by financial guarantors, of which 55% was guaranteed by financial guarantors who remain Aaa rated in 2008.
Overall, at December 31, 2007, $6.7 billion of the estimated fair value of the Company’s fixed maturity securities were credit enhanced by financial guarantors of which $2.5 billion, $2.5 billion and $1.7 billion at December 31, 2007, are included within state and political subdivisions, corporate securities and asset-backed securities, respectively, and 80% were guaranteed by financial guarantors who remain Aaa rated in 2008.
Fixed Maturity and Equity Security Impairment.
The Company classifies all of its fixed maturity and equity securities as available-for-sale and marks them to market through other comprehensive income, except for non-marketable private equities, which are generally carried at cost and trading securities which are carried at fair value with subsequent changes in fair value recognized in net investment income.
All securities with gross unrealized losses at the consolidated balance sheet date are subjected to the Company’s process for identifying other-than-temporary impairments.
The Company writes down to fair value securities that it deems to be other-than-temporarily impaired in the period the securities are deemed to be so impaired.
The assessment of whether such impairment has occurred is based on management’s case-by-case evaluation of the underlying reasons for the decline in fair value.
Management considers a wide range of factors, as described in “— Summary of Critical Accounting Estimates — Investments,” about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery.
Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential.
The Company’s review of its fixed maturity and equity securities for impairments includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below cost or amortized cost by less than 20%; (ii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for less than six months; and (iii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for six months or greater.
While all of these securities are monitored for potential impairment, the Company’s experience indicates that the first two categories do not present as great a risk of impairment and, often, fair values recover over time as the factors that caused the declines improve.
The Company records impairments as investment losses and adjusts the cost basis of the fixed maturity and equity securities accordingly.
The Company does not change the revised cost basis for subsequent recoveries in value.
Impairments of fixed maturity and equity securities were $106 million, $82 million and $64 million for the years ended December 31, 2007, 2006 and 2005, respectively.
The Company’s credit-related impairments of fixed maturity and equity securities were $86 million, $82 million and $64 million for the years ended December 31, 2007, 2006 and 2005, respectively.
The Company’s three largest impairments totaled $19 million, $33 million and $40 million for the years ended December 31, 2007, 2006 and 2005, respectively.
The circumstances that gave rise to these impairments were financial restructurings, bankruptcy filings or difficult underlying operating environments for the entities concerned.
During the years ended December 31, 2007, 2006 and 2005, the Company sold or disposed of fixed maturity and equity securities at a loss that had a fair value of $46.8 billion, $70.3 billion and $93.9 billion, respectively.
Gross losses excluding impairments for fixed maturity and equity securities were $1.2 billion, $1.5 billion and $1.4 billion for the years ended December 31, 2007, 2006 and 2005, respectively


| Amortized Cost Estimated Fair Value | (thousands) | Due in one year or less | Due after one year through five years | Total |


Managements discussion and analysis WHOLESALE CREDIT PORTFOLIO The Firms wholesale businesses are exposed to credit risk through underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services such as cash management and clearing activities.
A portion of the loans originated or acquired by the Firms wholesale businesses is generally retained on the balance sheet.
The Firm distributes a significant percentage of the loans it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk.
The wholesale credit portfolio, excluding Oil & Gas, continued to be generally stable throughout 2015, characterized by low levels of criticized exposure, nonaccrual loans and charge-offs.
Growth in loans retained was driven by increased client activity, notably in commercial real estate.
Discipline in underwriting across all areas of lending continues to remain a key point of focus.
The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure, inclusive of collateral where applicable; and of industry, product and client concentrations.


| Total Equivalent Reserves  (Thousands barrels of oil equivalent) | United States | Proved developed reserves: | December 31, 2012 | December 31, 2013 | December 31, 2014 | December 31, 2015 | Proved undeveloped reserves: | December 31, 2012 | December 31, 2013 | December 31, 2014 | December 31, 2015 | Total proved reserves: | Balance December 31, 2012 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2013 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2014 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2015 | Accounts and notes receivable | Inventory | Deferred income tax assets – current | Other current assets | Plants, properties and equipment | Financial assets of special purpose entities | Goodwill | Other intangible assets | Deferred charges and other assets | Total assets acquired | Notes payable and current maturities of long-term debt | Accounts payable and accrued liabilities | Long-term debt | Nonrecourse financial liabilities of special purpose entities | Deferred income tax liability | Pension benefit obligation | Postretirement and postemployment benefit obligation | Other liabilities | Total liabilities assumed | Net assets acquired |


Interest Expense In order to modify exposure to interest rate and currency exchange rate movements, the Company utilizes derivative instruments, primarily interest rate swaps, in conjunction with some of its debt issues.
The impact of these derivative instruments are not reflected in the rates presented in the tables above.
For those derivative instruments that qualify for hedge accounting treatment, interest expense was increased by $7 million, $22 million and $23 million for the years ended December 31, 2015, 2014 and 2013, respectively.
See Note 21 for additional information on the Company’s use of derivative instruments.
Interest expense for short-term and long-term debt was $1,328 million, $1,934 million and $1,419 million for the years ended December 31, 2015, 2014 and 2013, respectively.
This includes interest expense of $11 million, $11 million and $6 million for the years ended December 31, 2015, 2014 and 2013, respectively, reported in “Net investment income.
” 15.


| Actual Estimate | (Millions of Dollars) | Regulated utility construction expenditures(a) | CECONY(b)(c) | Electric | Gas | Steam | Sub-total | O&R | Electric | Gas | Sub-total | Total regulated utility construction expenditures | Competitive energy businesses capital expenditures | Renewable and energy infrastructure projects | Other | Sub-total | Total capital expenditures | Retirement of long-term securities | Con Edison – parent company | CECONY(d) | O&R | Competitive energy businesses | Total retirement of long-term securities | Total capital requirements |


| High Low Dividends | 2006: | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | 2005: | Fourth Quarter | Third Quarter | Second Quarter | First Quarter |


(1)Loans secured primarily by real estate.
(2)Unearned income on consumer loans primarily represents unamortized origination fees, costs, premiums and discounts.
Prior to December 31, 2015, these items were more than offset by prepaid interest on loans outstanding issued by OneMain Financial.
The sale of OneMain Financial was completed in 2015.
(3)Unearned income on corporate loans primarily represents interest received in advance, but not yet earned on loans originated on a discount basis.
(4)All periods exclude loans that are carried at fair value.


(a) Including sales tax on customers’ bills, total taxes other than income taxes in 2018 and 2017 were $2,628 and $2,495 million, respectively.
Other Income (Deductions) Other income (deductions) decreased $6 million in 2018 compared with 2017 due primarily to an increase in non- service costs related to pension and other postretirement benefits.
Net Interest Expense Net interest expense increased $66 million in 2018 compared with 2017 due primarily to higher debt balances in 2018.
Income Tax Expense Income taxes decreased $359 million in 2018 compared with 2017 due primarily to lower income before income tax expense ($56 million), a decrease in the corporate federal income tax rate due to the TCJA ($250 million), a decrease in tax benefits for plant-related flow items ($9 million) and an increase in the amortization of excess deferred federal income taxes due to the TCJA ($52 million), offset in part by non-deductible business expenses ($3 million) and a decrease in bad debt write-offs ($4 million).
CECONY deferred as a regulatory liability its estimated net benefits for the 2018 period under the TCJA.
See “Other Regulatory Matters” in Note B to the financial statements in Item 8.
O&R


In addition to temporary loan modifications, we may make available to a borrower a payment plan or a HAMP trial payment period.
Under a payment plan or a HAMP trial payment period, there is no change to the loan’s contractual terms so the borrower remains legally responsible for payment of the loan under its original terms.
A payment plan involves the borrower paying the past due amounts over a short period of time, generally three months, in addition to the contractual payment amounts over that period upon which a borrower is brought current.
Due to the short term nature of the payment plan there is a minimal impact to the ALLL.
Under a HAMP trial payment period, we establish an alternate payment, generally at an amount less than the contractual payment amount, for the borrower during this short time period.
This allows a borrower to demonstrate successful payment performance before permanently restructuring the loan into a HAMP modification.
Subsequent to successful
In April 2011, the FASB issued ASU 2011-03 Transfers and Servicing (Topic 860), Reconsideration of Effective Control for Repurchase Agreements.
This ASU removes from the assessment of effective control (i) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (ii) the collateral maintenance implementation guidance related to that criterion.
Other criteria applicable to the assessment of effective control have not been changed by this ASU.
The adoption of ASU 2011-03 on January 1, 2012 did not have a material effect on our results of operations or financial position.
NOTE 2 ACQUISITION AND DIVESTITURE ACTIVITY RBC BANK (USA) ACQUISITION On March 2, 2012, PNC acquired 100% of the issued and outstanding common stock of RBC Bank (USA), the US retail banking subsidiary of Royal Bank of Canada.
As part of the acquisition, PNC also purchased a credit card portfolio from RBC Bank (Georgia), National Association.
PNC paid $3.6 billion in cash as consideration for the acquisition of both RBC Bank (USA) and the credit card portfolio.
The transactions added approximately $18.1 billion of deposits and $14.5 billion of loans to PNC’s Consolidated Balance Sheet.
RBC Bank (USA), based in Raleigh, North Carolina, operated more than 400 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina.
The primary reasons for the acquisition of RBC were to enhance shareholder value, to improve PNC’s competitive position in the financial services industry, and to further expand PNC’s existing branch network in the states where it currently operates as well as expanding into new markets.
The RBC Bank (USA) transactions noted above were accounted for using the acquisition method of accounting and, as such, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair value on the acquisition date.
All acquired loans were also recorded at fair value.
No allowance for loan losses was carried over and no allowance was created at acquisition.
In connection with the acquisition, the assets acquired, and the liabilities assumed, were recorded at fair value on the date of acquisition, as summarized in the following table: Table 55: RBC Bank (USA) Purchase Accounting (a) (b)


Accruing Loans Past Due 30 To 59 Days


While Ms.  Shanks and Mr.  Lewis are no longer CEO-Entergy Mississippi and principal financial officer for the Subsidiaries, respectively, Ms.  Shanks continues to participate in the Executive Incentive Plan, and Mr.  Lewis continues to participate in the Management Incentive Plan as they remain employees of Entergy since the contemplated Enexus separation has not occurred and Enexus remains a subsidiary of Entergy.
Nuclear Retention Plan Some of Entergy's executives, but not any of the Named Executive Officers, participate in a special retention plan for officers and other leaders with special expertise in the nuclear industry.
The Committee authorized the Plan to attract and retain management talent in the nuclear power field, a field which requires unique technical and other expertise that is in great demand in the utility industry.
The Plan provides for bonuses to be paid over a three-year employment period.
Subject to continued employment with a participating company, a participating employee is eligible to receive a special cash bonus consisting of three payments, each consisting of an amount from 15% to 30% of such participant's base salary.


| (in millions) Premiums and Other Considerations Net Investment Income Net Realized Capital Gains (Losses) Total Revenues Operating Income (Loss) | 2007 | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | 2006 | Life insurance(a) | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | 2005 | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | Percentage Increase/(Decrease) 2007 vs. 2006: | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | Percentage Increase/(Decrease) 2006 vs. 2005: | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total |


| 2008 2007 | (Dollars in billions) | United States | Australia | Great Britain | Spain | Italy | Portugal | Germany | Netherlands | Belgium | Greece | Other | Total conduit assets |


As of May 28, 2017, we did not any have cash and cash equivalents pledged as collateral for derivative contracts.
As of May 28, 2017, $19.6 million of certain accounts receivable were pledged as collateral against a foreign uncommitted line of credit.
The fair value and carrying amounts of long-term debt, including the current portion, were $8,547.0 million and $8,247.6 million, respectively, as of May 28, 2017.
The fair value of long-term debt was estimated using market quotations and discounted cash flows based on our current incremental borrowing rates for similar types of instruments.
Long-term debt is a Level 2 liability in the fair value hierarchy.


Net realized losses on other investments were $30 million in 2010, which reflected $30 million of other other-than-temporary impairments on joint ventures and partnerships and real estate investments.
Net realized losses on other investments were $41 million in 2009, which included $48 million of other-than-temporary impairments on joint ventures and partnerships and losses on investment real estate in our asset management operations.
During 2010, we recorded other-than-temporary impairments of $672 million in earnings, compared to total other-than-temporary impairments of $1,611 million recorded in earnings in 2009.
The following tables set forth, for the periods indicated, the composition of other-than-temporary impairments recorded in earnings attributable to the Financial Services Businesses by asset type, and for fixed maturity securities, by reason.


| July 1, 2005 – December 31, 2005 January 1, 2005 – June 30, 2005 2004 2003 | Approximate risk-free interest rate | Expected life of option grants | Expected volatility of underlying stock | Expected volatility of underlying stock (ATC Mexico and ATC South America Plans) | Expected dividends |


| In millions December 31 2011 December 31 2010 | Commercial lending | Commercial | Commercial real estate | Equipment lease financing | TOTAL COMMERCIAL LENDING | Consumer lending | Home equity | Residential real estate | Credit card | Other consumer | TOTAL CONSUMER LENDING | Total loans (a) (b) | In millions | Commercial and commercial real estate | Home equity lines of credit | Credit card | Other | Total (a) |


| 2018 $801,503 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total |


| 2003 2002 2001 | Cash, cash equivalents, and short-term investments | Accounts receivable, net | Inventory | Working capital | Days sales in accounts receivable (DSO) (a) | Days of supply in inventory (b) | Days payables outstanding (DPO) (c) | Annual operating cash flow |


| At December 31, | (dollar amounts in millions) | Secured loans: | Real estate—commercial | Real estate—consumer | Vehicles | Receivables/Inventory | Machinery/Equipment | Securities/Deposits | Other | Total secured loans and leases | Unsecured loans and leases | Total loans and leases |


| Year Ended December 31, | (in thousands) | Revenue: | Software licenses | Maintenance and service | Total revenue | Cost of sales: | Software licenses | Amortization | Maintenance and service | Total cost of sales | Gross profit | Operating expenses: | Selling, general and administrative | Research and development | Amortization | In-process research and development | Total operating expenses | Operating income | Interest expense | Interest income | Other income (expense), net | Income before income tax provision | Income tax provision | Net income |


RESTRICTED STOCK Restricted Stock Units Without Market ConditionsThe Company issues restricted stock units (RSUs) without market conditions under its long-term compensation plan.
The RSUs are generally granted based upon a percentage of the participants base salary.
The units have a three-year vesting schedule and vest in one-third increments over the three-year period.
Units granted prior to 2011 are required to be held for an additional two years before they can be converted into shares, and thus become transferable.
There is no such requirement for units granted in 2011.
In all circumstances, restricted stock units granted by AES do not entitle the holder the right, or obligate AES, to settle the restricted stock unit in cash or other assets of AES.
For the years ended December 31, 2011, 2010, and 2009, RSUs issued without a market condition had a grant date fair value equal to the closing price of the Companys stock on the grant date.
The Company does not discount the grant date fair values to reflect any post-vesting restrictions.
RSUs without a market condition


Note 13.
Debt On April 28, 2008, the Company extended its committed unsecured revolving credit facility, dated as of April 28, 2006 (the Credit Facility), for an additional year.
The new expiration date of the Credit Facility is April 26, 2011.
The available funding under the Credit Facility will remain at $2,500,000 through April 27, 2010 and then decrease to $2,000,000 during the final year of the Credit Facility agreement.
Other terms and conditions in the Credit Facility remain unchanged.
The Companys option to request that each lender under the Credit Facility extend its commitment was provided pursuant to the original terms of the Credit Facility agreement.
Borrowings under the facility are available to provide liquidity in the event of one or more settlement failures by MasterCard International customers and, subject to a limit of $500,000, for general corporate purposes.
A facility fee of 8 basis points on the total commitment, or approximately $2,030, is paid annually.
Interest on borrowings under the Credit Facility would be charged at the London Interbank Offered Rate (LIBOR) plus an applicable margin of 37 basis points or an alternative base rate, and a utilization fee of 10 basis points would be charged if outstanding borrowings under the facility exceed 50% of commitments.
The facility fee and borrowing cost are contingent upon the Companys credit rating.
The Company also agreed to pay upfront fees of $1,250 and administrative fees of $325 for the Credit Facility which are being amortized straightline over three years.
Facility and other fees associated with the Credit Facility or prior facilities totaled $2,353, $2,477 and $2,717 for each of the years ended December 31, 2008, 2007 and 2006, respectively.
MasterCard was in compliance with the covenants of the Credit Facility and had no borrowings under the Credit Facility at December 31, 2008 or December 31, 2007.
The majority of Credit Facility lenders are customers or affiliates of customers of MasterCard International.
In June 1998, MasterCard International issued ten-year unsecured, subordinated notes (the Notes) paying a fixed interest rate of 6.67% per annum.
MasterCard repaid the entire principal amount of $80,000 on June 30,


| In millions of dollars, except as otherwise noted-1 2018 2017 2016 % Change2018 vs. 2017 % Change2017 vs. 2016 | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Total operating expenses | Net credit losses | Credit reserve build (release) | Provision (release) for unfunded lending commitments | Provisions for credit losses | Income from continuing operations before taxes | Income taxes | Income from continuing operations | Noncontrolling interests | Net income | Balance Sheet data and ratios(in billions of dollars) | Average assets | Return on average assets | Efficiency ratio | Average deposits | Net credit losses as a percentage of average loans | Revenue by business | Retail banking | Citi-branded cards | Total | Income from continuing operations by business | Retail banking | Citi-branded cards | Total |


| Assumptions 2007 2006 2005 | Expected volatility rate | Expected dividend yield | Average risk-free interest rate | Expected forfeiture rate | Expected term years |


ITEM 7.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the consolidated financial statements and accompanying notes included in Item 8 of this Annual Report.
Executive Summary Financial Highlights and Trends In 2012, we generated net sales of $7.249 billion, as compared to $7.622 billion in 2011, a decrease of $373 million, or five percent.
Our net sales were unfavorably impacted by $123 million from foreign currency fluctuations in 2012 as compared to 2011 and sales related to our divested Neurovascular business declined $19 million in 2012.
Refer to Note CDivestitures and Assets Held for Sale included in Item 8 of this Annual Report for additional information on the Neurovascular divestiture.
Excluding the impact of foreign currency and sales from divested businesses, our net sales decreased $232 million, or three percent, as compared to the prior year.
This decrease was due primarily to constant currency declines in net sales from our Interventional Cardiology business of $266 million and Cardiac Rhythm Management (CRM) business of $145 million.
These decreases were partially offset by constant currency increases in net sales from our Endoscopy business of $84 million, from our Peripheral Interventions business of $56 million, and net sales from our Neuromodulation business of $32 million, as compared to the same period in the prior year.1 Refer to the Business and Market Overview section for further discussion of our sales results.
Our reported net loss in 2012 was $4.068 billion, or $2.89 per share.
Our reported results for 2012 included goodwill and intangible asset impairment charges; acquisition- and divestiturerelated net credits, restructuring- and litigation-related charges; discrete tax items and amortization expense (after-tax) of $5.001 billion, or $3.55 per share.
Excluding these items, net income for 2012 was $933 million, or $0.66 per share1.
Our reported net income in 2011 was $441 million, or $0.29 per share.
Our reported results for 2011 included goodwill and intangible asset impairment charges; acquisition-, divestiture-, restructuring- and litigation-related charges and credits; discrete tax items; and amortization expense (after-tax) of $577 million, or $0.38 per share.
Excluding these items, net income for 2011 was $1.018 billion, or $0.67 per share1.
The following is a reconciliation of our results of operations prepared in accordance with U. S.  GAAP to those adjusted results considered by management.
Refer to Results of Operations for a discussion of each reconciling item:


| Site Location Start Court or Agency % of Total Liability | Borne Chemical | Metal Bank of America | Ellis Road | Twelve Months Ended | (millions of dollars) | Operating revenues | Gas purchased for resale | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Gas operating income | Thousands of dths Delivered | Twelve Months Ended | Description | Residential | General | Firm transportation | Total firm sales and transportation | Interruptible sales(a) | NYPA | Generation plants | Other | Other operating revenues | Total |


| Preferred Stock Common Stock | Issued | 2004: | Balance at January 1, 2004 | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2004 | 2005: | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2005 | 2006: | Grants of restricted stock | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2006 |


| December 31, | 2016 | Variable annuity | VUL insurance | Other insurance | Threadneedle investment liabilities | Total |


| Name and Location Number of Rooms Owned, Leased or Managed | Loews Annapolis Hotel Annapolis, Maryland | Loews Coronado Bay San Diego, California | Loews Denver Hotel Denver, Colorado | The Don CeSar, a Loews Hotel St. Pete Beach, Florida | Hard Rock Hotel, at Universal Orlando Orlando, Florida | Loews Lake Las Vegas Henderson, Nevada | Loews Le Concorde Hotel Quebec City, Canada | The Madison, a Loews Hotel Washington, D.C. | Loews Miami Beach Hotel Miami Beach, Florida | Loews New Orleans Hotel New Orleans, Louisiana | Loews Philadelphia Hotel Philadelphia, Pennsylvania | Loews Portofino Bay Hotel, at Universal Orlando Orlando, Florida | Loews Regency Hotel New York, New York | Loews Royal Pacific Resort at Universal Orlando Orlando, Florida | Loews Santa Monica Beach Hotel Santa Monica, California | Loews Vanderbilt Hotel Nashville, Tennessee | Loews Ventana Canyon Tucson, Arizona | Loews Hotel Vogue Montreal, Canada |


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements Reconciliation of select financial information The tables below present certain financial information for the Company’s reportable segments:


| Tower Cash Flow, for the three months ended December 31, 2005 $139,590 | Consolidated Cash Flow, for the twelve months ended December 31, 2005 | Less: Tower Cash Flow, for the twelve months ended December 31, 2005 | Plus: four times Tower Cash Flow, for the three months ended December 31, 2005 | Adjusted Consolidated Cash Flow, for the twelve months ended December 31, 2005 | Non-Tower Cash Flow, for the twelve months ended December 31, 2005 | For the Years Ended December 31, | 2015 | Statutory rate | State taxes | Taxes on foreign earnings | Credits and net operating loss utilization | Purchased intangible assets | Manufacturing deduction | Other permanent items | Contingent consideration and other | Effective tax rate | (In millions) | Minimum lease payments -1 | Less: income from subleases | Net minimum lease payments | For the Years Ended December 31, | 2015 | (In millions) | Multiple Sclerosis (MS): | TECFIDERA | AVONEX | PLEGRIDY | TYSABRI | FAMPYRA | Hemophilia: | ELOCTATE | ALPROLIX | Other product revenues: | FUMADERM | Total product revenues | December 31, 2015 (In millions) | Product revenues from external customers | Unconsolidated joint business revenues | Other revenues from external customers | Long-lived assets | December 31, 2014 (In millions) | Product revenues from external customers | Unconsolidated joint business revenues | Other revenues from external customers | Long-lived assets | December 31, 2013 (In millions) | Product revenues from external customers | Unconsolidated joint business revenues | Other revenues from external customers | Long-lived assets |


| Sensitivity of Disclosures to Changes in Selected Assumptions | 25 BP Decrease inDiscount Rate | (DOLLARS IN THOUSANDS) | U.S. Pension Plans | Non-U.S. Pension Plans | Postretirement Benefit Plan |


| December 31, 2016 – in billions DomesticCertificatesof Deposit | Three months or less | Over three through six months | Over six through twelve months | Over twelve months | Total |


| Revenue  Years ended December 31, Long-Lived Assets  December 31, | 2006 | U.S. | International: | U.K. | All Other Europe | Asia Pacific | Latin America | Other | Total international | Total consolidated |


| (Dollar amounts in millions) 2006 Percent change 2005 Percent change 2004 | Salaries and bonuses | Employee benefits: | Employee health and insurance | Retirement | Payroll taxes and other | Total benefits | Total salaries and employee benefits | Full-time equivalent employees (“FTEs”) at December 31 |


| 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 (orApproximate Dollar Value)of Shares (or Units)that May Yet Be PurchasedUnder the Plans orPrograms3 | October 1 - 31 | November 1 - 30 | December 1 - 31 | Total |


| Balance at May 31, 2014 $-7,199 | Utilization of foreign net operating loss carryforwards | Other | Balance at May 31, 2015 | Allowance for foreign income tax credit carryforward | Allowance for domestic net operating loss carryforwards | Allowance for domestic net unrealized capital loss | Release of allowance of domestic capital loss carryforward | Other | Balance at May 31, 2016 | Allowance for domestic net operating loss carryforwards | Release of allowance of domestic net unrealized capital loss | Balance at December 31, 2016 | Allowance for foreign net operating loss carryforwards | Allowance for domestic net operating loss carryforwards | Allowance for state credit carryforwards | Rate change on domestic net operating loss and capital loss carryforwards | Utilization of foreign income tax credit carryforward | Balance at December 31, 2017 |


| Estimated Exposure toNet Interest Revenue | (Dollars in millions) | Rate change: | +100 bps shock | –100 bps shock | +100 bps ramp | –100 bps ramp |


| Year ended December 31,(in millions) 2016 2015 2014 | Realized gains | Realized losses | OTTI losses | Net securities gains | OTTI losses | Credit losses recognized in income | Securities the Firm intends to sell(a) | Total OTTI losses recognized in income |


| 2009 | Amortized Cost | (in millions) | Fixed maturities, available for sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Obligations of U.S. states and their political subdivisions | Foreign government bonds | Corporate securities | Asset-backed securities-1 | Commercial mortgage-backed securities | Residential mortgage-backed securities-2 | Total fixed maturities, available for sale | Equity securities, available for sale | December 31, 2009 | Carrying Amount | Assets: | Fixed maturities, held to maturity | Commercial mortgage and other loans-1 | Policy loans | Wachovia Securities “lookback” option | Liabilities: | Policyholder account balances—investment contracts | Short-term and long-term debt-1 | Debt of consolidated VIEs | Bank customer liabilities | Year Ended December 31, | 2009 | Other-than-temporary impairments recorded in earnings—Financial Services Businesses-1 | Public fixed maturity securities | Private fixed maturity securities | Total fixed maturity securities | Equity securities | Other invested assets-2 | Total |


| Company Index December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 December 31, 2017 December 31, 2018 | Aptiv PLC -1 | S&P 500 -2 | Automotive Peer Group -3 |


| Gold Ounces Sold-1 Costs Applicable to Sales-2 Amortization | 2009 | (in thousands) | Ahafo, Ghana |


| December 31, 2007 | Proved Developed Reserves | United States | Natural gas (Bcf) | Crude oil (MMBbls) | Total US (MMBoe) | International | Natural gas (Bcf) | Crude oil (MMBbls) | Total International (MMBoe) | Worldwide | Natural gas (Bcf) | Crude oil (MMBbls) | Total Worldwide (MMBoe) |


| Year Ended December 31, 2017 | PFI Excluding Closed Block Division and Japanese Operations | Yield-1 | ($ in millions) | Fixed maturities-2 | Assets supporting experience-rated contractholder liabilities | Equity securities | Commercial mortgage and other loans | Policy loans | Short-term investments and cash equivalents | Gross investment income | Investment expenses | Investment income after investment expenses | Other invested assets-3 | Investment results of other entities and operations-4 | Total investment income | Year Ended December 31, 2016 | PFI Excluding Closed Block Division and Japanese Operations | Yield-1 | ($ in millions) | Fixed maturities-2 | Assets supporting experience-rated contractholder liabilities | Equity securities | Commercial mortgage and other loans | Policy loans | Short-term investments and cash equivalents | Gross investment income | Investment expenses | Investment income after investment expenses | Other invested assets-3 | Investment results of other entities and operations-4 | Total investment income |


Troubled Debt Restructurings TDRs include loan modifications completed under our programs that involve granting an economic concession to a borrower experiencing financial difficulty, as well as loans that have been charged-off based on the estimated current value of the underlying property less estimated selling costs due to bankruptcy notification.
At December 31, 2013, we had $189.0 million net investment of TDRs that had been charged-off due to bankruptcy notification, $105.5 million of which were classified as performing The following table shows the TDRs by delinquency category at December 31, 2013 and 2012 (dollars in millions)


| Equipment operations $3,836 $2,898 $2,302 | Financial services | Total | Outside U.S. and Canada: | Equipment operations | Financial services | Total | Total | Property and equipment | U.S. | Germany | Other countries | Total |


Segment profits are comprised of segment revenues less certain elements of materials and production costs and operating expenses, including components of equity income or loss from affiliates and depreciation and amortization expenses.
For internal management reporting presented to the chief operating decision maker, Merck does not allocate production costs, other than standard costs, research and development expenses or general and administrative expenses, nor the cost of financing these activities.
Separate divisions maintain responsibility for monitoring and managing these costs, including depreciation related to fixed assets utilized by these divisions and, therefore, they are not included in segment profits.
Also excluded from the determination of segment profits are the arbitration settlement charge, the gain on the divestiture of the JJMCP joint venture and a gain on the sale of certain manufacturing facilities and related assets recorded in 2011, the charge for the Vioxx Liability Reserve and the income recognized on AstraZeneca’s asset option exercise both recognized in 2010 and the gains related to the MSP Partnership and the disposition of Merial in 2009.
In addition, the amortization of purchase accounting adjustments and other acquisition-related costs, intangible asset impairment charges, restructuring costs, taxes paid at the joint venture level and a portion of equity income are also excluded from the determination of segment profits.
Additionally, segment profits do not reflect other expenses from corporate and manufacturing cost centers and other miscellaneous income or expense.
These unallocated items are reflected in “Other” in the above table.
Also included in “Other” are miscellaneous corporate profits, operating profits related to third-party manufacturing sales, divested products or businesses, as well as other supply sales.
Pharmaceutical segment profits rose 7% in 2011 driven largely by the increase in sales and the gross margin improvement discussed above.
Pharmaceutical segment profits increased 52% in 2010 driven largely by the inclusion of legacy Schering-Plough results.


| In millions Unpaid Principal Balance Recorded Investment (a) Associated Allowance (b) Average Recorded Investment (a) | December 31, 2012 | Impaired loans with an associated allowance | Commercial | Commercial real estate | Home equity (c) | Residential real estate (c) | Credit card (c) | Other consumer (c) | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Commercial | Commercial real estate | Total impaired loans without an associated allowance | Total impaired loans | December 31, 2011 | Impaired loans with an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Credit card | Other consumer | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Commercial | Commercial real estate | Total impaired loans without an associated allowance | Total impaired loans |


pension business in the prior period and an increase in other expenses, primarily related to expenses associated with DAC, interest expense, minority interest expense and equity compensation costs.
Revenues and Expenses Premiums, Fees and Other Revenues Premiums, fees and other revenues increased by $2,595 million, or 9%, to $32,554 million for the year ended December 31, 2006 from $29,959 million for the comparable 2005 period.
Excluding the impact of the acquisition of Travelers, which contributed $945 million during the first six months of 2006 to the year over year increase, premiums, fees and other revenues increased by $1,650 million.
The following table provides the change in premiums, fees and other revenues by segment, excluding Travelers:


| 2015 2014 | (Dollars in millions) | Net debt includes: | Current borrowings | Long-term borrowings | Unamortized debt discount | Total debt | Less: Cash and cash equivalents | Net debt | Total capital includes: | Net debt | Common shareholders’ equity | Total capital | Percent of net debt to total capital |


| Year ending March 31, Operating Leases | 2004 | 2005 | 2006 | 2007 | 2008 | Thereafter | Total future minimum lease payments |


| Year Ended December 31, | 2010 | Average Variable Transaction Fee Per Million | U.S. high-grade — fixed rate | U.S. high-grade — floating rate | Total U.S. high-grade | Eurobond | Other | Total |


| Quoted Prices in Active Markets for Identified Assets (Level1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total | Cash and cash equivalents | Equity securities: | U.S. large capitalization | U.S. small and mid-capitalization | International | Debt securities: | Corporate bonds | Municipal bonds | U.S. treasury and agency securities | Asset-backed securities | Other | Total | Plus: Medical benefit assets at December 31(a) | Less: Net payables at December31(b) | Fair value of postretirement benefit plans assets at year end |


Processing fees and other revenue increased $9 million over 2003, as a result of improved earnings from unconsolidated affiliates, largely offset by a decrease of $47 million in payments made by Deutsche Bank AG in consideration of net interest revenue earned from GSS customer deposits.
These deposits were held by Deutsche Bank AG until customers and their related deposits were converted to our systems.
In addition, processing fees in 2003 included an unrealized gain of $23 million on the mark-to-market of variable-share repurchase contracts, known as SPACESSM, for shares of our common stock; an other-than-temporary impairment charge of $27 million resulting from the write-down of certain investment securities; and a $13 million loss on sales of certain real estate.
Net gains on sales of available-for-sale securities were $26 million in 2004, up from $23 million in 2003.
Net interest revenue for 2004 increased $49 million from 2003, due to an increase in our average balance sheet driven by a higher level of customer deposits, including the conversion of GSS customers, somewhat offset by lower interest-rate spreads.
The 2004 amount reflected a $19 million cumulative charge to interest revenue, which resulted from a change in effective state tax rate assumptions used for recognition of income from leveraged lease transactions.
We reduced the allowance for loan losses in 2004 by recording an $18 million benefit in the related income statement provision in response to reduced credit exposure and improved credit quality.


| 2012 2011 | (DOLLARS IN THOUSANDS) | Cash and cash equivalents-1 | Credit facilities and bank overdrafts-2 | Long-term debt:-3 | Senior notes — 2007 | Senior notes — 2006 |


Stock Price Performance The following graph shows a comparison of the cumulative total return on our common stock, the Standard & Poor’s 500 Index and the Standard & Poor’s Retail Index.
The graph assumes that the value of an investment in our common stock and in each such index was $100 on December 31, 2011, and that any dividends have been reinvested.
The comparison in the graph below is based solely on historical data and is not intended to forecast the possible future performance of our common stock.
COMPARISON OF CUMULATIVE TOTAL RETURN AMONG ADVANCE AUTO PARTS, INC. , S&P 500 INDEX AND S&P RETAIL INDEX


| Pension Benefits Other Postretirement Benefits | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 - 2026 | Total |


| December 31, | 2011 | (Dollars in thousands) | Assets carried at fair value | As a percentage of total assets | Liabilities carried at fair value | As a percentage of total liabilities | Level 1 and 2 | Percentage of assets measured at fair value |


| In millions 2012 2011 2010 | Revenue (loss) (a) | Expense (b) | Cash receipts (c) | Cash payments (d) |


| In millions of dollars 2010 2009 2008 % Change 2010 vs. 2009 % Change 2009 vs. 2008 | Net interest revenue | Non-interest revenue | Revenues, net of interest expense | Total operating expenses | Net credit losses | Provision (releases) for unfunded lending commitments | Credit reserve builds (releases) | Provisions for credit losses and for benefits and claims | Income (loss) from continuing operations before taxes | Income taxes (benefits) | Net income (loss) from continuing operations | Net income (loss) attributable to noncontrolling interests | Net income (loss) | EOP assets(in billions of dollars) |


| Gain (Loss) Recognized in OCI Location of Gain (Loss)Recognized in Income1 Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 2017 | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Interest rate contracts | Commodity contracts | Commodity contracts | Total | 2016 | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Interest rate contracts | Commodity contracts | Total | 2015 | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Foreign currency contracts | Interest rate contracts | Commodity contracts | Total |


| Retail Group,Voluntary& WorksiteBenefits CorporateBenefitFunding LatinAmerica Asia EMEA Corporate& Other Total | (In millions) | Total revenues | Less: Net investment gains (losses) | Less: Net derivative gains (losses) | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to revenues -1 | Total operating revenues | Total expenses | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to expenses -1 | Total operating expenses | Retail | (In millions) | Total revenues | Less: Net investment gains (losses) | Less: Net derivative gains (losses) | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to revenues -1 | Total operating revenues | Total expenses | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to expenses -1 | Total operating expenses | Retail | (In millions) | Total revenues | Less: Net investment gains (losses) | Less: Net derivative gains (losses) | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to revenues -1 | Total operating revenues | Total expenses | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to expenses -1 | Total operating expenses |


| Year ended December 31, | (Dollars in thousands) | Balance, beginning of year | Charge-offs: | Commercial loans: | Software | Hardware | Venture capital/private equity | Life science | Premium wine | Other | Total commercial loans | Consumer loans | Total charge-offs | Recoveries: | Commercial loans: | Software | Hardware | Venture capital/private equity | Life science | Premium wine | Other | Total commercial loans | Consumer loans | Total recoveries | Provision for loan losses | Balance, end of year |


(a)  See Note 22 to the consolidated financial statements for revision.
Cash provided by operating activities for continuing operations increased by $123 million for 2008 as compared to 2007.
The increase is primarily attributable to changes in other current liabilities due to timing for interest payable and accounts payable and an increase in recoverable gas and electric costs.
This increase was partially offset by changes in working capital activity due to increased inventory, contributions for pension and non-pension postretirement benefits, and an increase in net regulatory assets and liabilities.
The increased inventory reflects the higher cost of natural gas combined with an increase in storage contracts.
The increase in net regulatory assets and liabilities reflects the increase in pension funding obligation, and the decrease in fair value of the investments in the decommissioning fund, partially offset by the decrease in the asset retirement obligation for the extended life of the nuclear facilities.
Cash provided by operating activities for discontinued operations decreased $75 million, primarily due to decreased income taxes received during 2008.
Cash provided by operating activities for continuing operations decreased by $169 million during 2007.
The decrease was primarily due to changes in working capital activity primarily the timing of accounts receivables and unbilled revenues.
The decrease in cash provided by operations was partially offset by the collection of recoverable purchased


Available-for-sale securities included in current marketable securities were $819 million at December 31, 2013.
Non-current availablefor-sale corporate debt securities maturing within five years were $3,735 million at December 31, 2013.
Auction rate securities maturing beyond 10 years were $12 million at December 31, 2013.
Fair Value Option for Financial Assets The Company invests in equity and fixed income funds that are designed to offset the changes in fair value of certain employee retirement benefits.
Investments in equity and fixed income funds are included in current marketable securities and were $74 million and $46 million, respectively, at December 31, 2013 and $57 million and $47 million, respectively, at December 31, 2012.
Investment income resulting from the change in fair value for the investments in equity and fixed income funds was $14 million in 2013 and $5 million in 2012.
Qualifying Hedges The following summarizes the fair value of outstanding derivatives:
Cash Flow Hedges Â¡Âª Foreign currency forward contracts are primarily utilized to hedge forecasted intercompany inventory purchase transactions in certain foreign currencies.
These forward contracts are designated as cash flow hedges with the effective portion of changes in fair value being temporarily reported in accumulated OCI and recognized in earnings when the hedged item affects earnings.
The net gains on foreign currency forward contracts are expected to be reclassified to cost of products sold within the next two years, including $14 million of pre-tax gains to be reclassified within the next 12 months.
The notional amount of outstanding foreign currency forward contracts was primarily attributed to the Euro ($780 million) and Japanese yen ($247 million) at December 31, 2013.
Cash flow hedge accounting is discontinued when the forecasted transaction is no longer probable of occurring on the originally forecasted date, or 60 days thereafter, or when the hedge is no longer effective.
Assessments to determine whether derivatives designated as qualifying hedges are highly effective in offsetting changes in the cash flows of hedged items are performed at inception and on a quarterly basis.
Any ineffective portion of the change in fair value is included in current period earnings.
The earnings impact related to discontinued cash flow hedges and hedge ineffectiveness was not significant during all periods presented.


| 2016 2015 | Deferred tax assets: | Inventory reserves | Deferred income on shipments to distributors | Reserves for compensation and benefits | Tax credit carryovers | Stock-based compensation | Depreciation | Acquisition-related costs | Other | Total gross deferred tax assets | Valuation allowance | Total deferred tax assets | Deferred tax liabilities: | Depreciation | Undistributed earnings of foreign subsidiaries | Acquisition-related intangibles | Other | Total gross deferred tax liabilities | Net deferred tax liabilities |


Table of Contents laws are sought in the United States and other countries through reform of patent and other relevant laws and implementation of international treaties.
The Company has the following key U. S.  patent protection for drug candidates under review in the United States by the FDA.
Additional patent term may be provided for these pipeline candidates based on Patent Term Restoration and Pediatric Exclusivity.


| (Dollars in millions) 2009 2008 2007 | Severance and employee-related charges | Systems integrations and related charges | Other | Total merger and restructuring charges |


| Pension Benefits Other Postretirement Benefits | 2009 | Fair value of plan assets at January 1 | Actual return on plan assets | Company contributions | Schering-Plough merger | Effects of exchange rate changes | Benefits paid | Other | Fair value of plan assets at December 31 | Benefit obligation at January 1 | Service cost | Interest cost | Schering-Plough merger | Actuarial losses (gains) | Benefits paid | Effects of exchange rate changes | Plan amendments | Curtailments | Termination benefits | Other | Benefit obligation at December 31 | Funded status at December 31 | Recognized as: | Other assets | Accrued and other current liabilities | Deferred income taxes and noncurrent liabilities | Years Ended December 31 | Sales | Materials and production costs | Other expense, net | Income before taxes |


| Percentages of Related Revenues Fiscal Year Ended September 30, | 2016 | Gross profit — Home sales | Gross profit — Land/lot sales and other | Inventory and land option charges | Gross profit — Total homebuilding | Selling, general and administrative expense -1 | Goodwill impairment | Other (income) expense (1) | Homebuilding pre-tax income |


5.
Short-Term Borrowings and Other Financing Instruments Commercial Paper  At Dec.  31, 2008 and 2007, Xcel Energy and its utility subsidiaries had commercial paper outstanding of approximately $330.3 and $1.1 billion, respectively.
The weighted average interest rates at Dec.  31, 2008 and 2007 were 3.53 percent and 5.57 percent, respectively.
At Dec.  31, 2008 and 2007, Xcel Energy and its utility subsidiaries had combined board approval to issue up to $2.25 billion of commercial paper.
Credit Facility Bank Borrowings  At Dec.  31, 2008, Xcel Energy and its utility subsidiaries had credit facility bank borrowings of $125.0 million with a weighted average interest rate of 1.88 percent.
Xcel Energy and its utility subsidiaries had no credit facility bank borrowings at Dec.  31, 2007.
Money Pool  Xcel Energy and its utility subsidiaries have established a utility money pool arrangement that allows for short-term loans between the utility subsidiaries and from the holding company to the utility subsidiaries at marketbased interest rates.
The utility money pool arrangement does not allow loans from the utility subsidiaries to the holding company.
At Dec.  31, 2008 and 2007, Xcel Energy and its utility subsidiaries had money pool loans outstanding of $104.5 million and $100.6 million, respectively.
The weighted average interest rates at Dec.  31, 2008 and 2007 were 3.48 percent and 5.64 percent, respectively.6.
Long-Term Borrowings and Other Financing Instruments Credit Facilities  At Dec.  31, 2008, Xcel Energy and its utility subsidiaries had the following committed credit facilities available:


| (Dollars in thousands) Actual Ratio Actual Amount Capital Adequacy Minimum Ratio Capital Adequacy Minimum Capital Requirement | December 31, 2010: | Total risk-based capital ratio: | SVB Financial | Bank | Tier 1 risk-based capital ratio: | SVB Financial | Bank | Tier 1 leverage ratio: | SVB Financial | Bank |


| Thousands of Dt Delivered Revenues in Millions(a) | Twelve Months Ended | Description | Residential | General | Firm transportation | Total firm sales and transportation | Interruptible sales(c) | NYPA | Generation plants | Other | Other operating revenues(d) | Total |