Segment Results Snap-on’s business segments are based on the organization structure used by management for making operating and investment decisions and for assessing performance.
Snap-on’s reportable business segments are: (i) the Commercial & Industrial Group; (ii) the Snap-on Tools Group; (iii) the Repair Systems & Information Group; and (iv) Financial Services.
The Commercial & Industrial Group consists of business operations serving a broad range of industrial and commercial customers worldwide, primarily through direct and distributor channels.
The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians through the company’s worldwide mobile tool distribution channel.
The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers worldwide, primarily owners and managers of independent repair shops and OEM dealership service and repair shops, through direct and distributor channels.
Financial Services consists of the business operations of Snap-on’s finance subsidiaries.
Snap-on evaluates the performance of its operating segments based on segment revenues, including both external and intersegment net sales, and segment operating earnings.
Snap-on accounts for intersegment sales and transfers based primarily on standard costs with reasonable mark-ups established between the segments.
Identifiable assets by segment are those assets used in the respective reportable segment’s operations.
Corporate assets consist of cash and cash equivalents (excluding cash held at Financial Services), deferred income taxes and certain other assets.
All significant intersegment amounts are eliminated to arrive at Snap-on’s consolidated financial results.


| Pension Benefits Post- Retirement Benefits | (dollar amounts in thousands) | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 through 2021 |


| Year Ended December 31, | 2015 | (in millions) | Public fixed maturity securities | Private fixed maturity securities | Total fixed maturity securities | Equity securities | Other invested assets-1 | Total-2 |


NOTE 17: SIGNIFICANT OPERATING AND NONOPERATING ITEMS Other Operating Charges In 2015, the Company incurred other operating charges of $1,657 million.
These charges primarily consisted of $691 million due to the Companys productivity and reinvestment program and $292 million due to the integration of our German bottling operations.
In addition, the Company recorded impairment charges of $418 million primarily due to the discontinuation of the energy products in the glacÃ©au portfolio as a result of the Monster Transaction and incurred a charge of $100 million due to a cash contribution we made to The Coca-Cola Foundation.
The Company also incurred a charge of $111 million due to the write-down of receivables from our bottling partner in Venezuela and an impairment of a Venezuelan trademark primarily due to changes in exchange rates as a result of the establishment of the new open market exchange system.
Refer to Note 18 for additional information on the Companys productivity, integration and restructuring initiatives.
Refer to Note 2 for additional information on the Monster Transaction.
Refer to Note 1 for additional information on the Venezuelan currency change.
Refer to Note 19 for the impact these charges had on our operating segments.


| 2004 2005 2006 | Domestic Company-owned stores | Domestic franchise stores | Domestic stores | International stores |


| (in millions) 2016 2015 2014 | Accrued liability for tobacco and health litigation items at beginning of year | Pre-tax charges for: | Tobacco and health judgments | Related interest costs | Agreement to resolve federalEngleprogeny cases | Agreement to resolveAspinallincluding related interest costs | Agreement to resolveMiner | Implementation of corrective communications remedy pursuant to the federal government’s lawsuit | Payments | Accrued liability for tobacco and health litigation items at end of year |


Performance Units, or PUs PUs granted under the Company’s LTIP fully vest three years from the date of issuance.
PUs granted prior to January 1, 2009, are paid out upon vesting if the closing price of NRG’s common stock on the vesting date, or the Measurement Price, is equal to or greater than the Target Price.
PUs granted after January 1, 2009, are paid out upon vesting if the Measurement Price is equal to or greater than Threshold Price.
The Threshold Price, Target Price and Maximum Price are determined on the date of issuance.
The payout for each PU will be equal to: (i) a pro-rata amount between 0.5 and 1 share of common stock, if the Measurement Price is equal to or greater than the target Threshold Price but less than the Target Price, for grants made after January 1, 2009; (ii) one share of common stock, if the Measurement Price equals the Target Price; (iii) a pro-rata amount between one and two shares of common stock, if the Measurement Price is greater than the Target Price but less than the Maximum Price; and (iv) two shares of common stock, if the Measurement Price is equal to, or greater than, the Maximum Price.


| Con Edison Con Edison of New York | (Millions of Dollars) | Prepaid pension cost | Accrued benefit cost | Additional minimum pension liability | Intangible asset | Accumulated other comprehensive income | 1993 special retirement program | Net prepaid benefit cost |


| 2006 2005  As Restated -1 2004  As Restated -1 | Computed expected tax | State taxes, net of federal effect | Indefinitely invested earnings of foreign subsidiaries | Nondeductible executive compensation | Research and development credit, net | Other items | Provision for income taxes | Effective tax rate |


| Less than 12 Months 12 Months or Greater Total | At December 31, 2010 | Unrestricted | U.S. government obligations | U.S. government guaranteed | corporate bonds | Equity security | Mortgage-backed securities | 363,061 | Restricted | U.S. government obligations | 6,154 | $369,215 | At December 31, 2009 | U.S. government obligations | Mortgage-backed securities | $9,367 |


Our consolidated net adjustments not related to volume, including net profit booking rate adjustments and other matters, net of state income taxes, increased segment operating profit by approximately $1.5 billion, $1.7 billion and $1.6 billion for 2016, 2015 and 2014.
The decrease in our consolidated net adjustments in 2016 compared to 2015 was primarily due to a decrease in profit booking rate adjustments at our MFC and Space Systems business segments, partially offset by an increase at our RMS business segment.
The increase in our consolidated net adjustments in 2015 compared to 2014 was primarily due to an increase in profit booking rate adjustments at our Space Systems and Aeronautics business segments, offset by a decrease in profit booking rate adjustments at our RMS and MFC business segments.
The consolidated net adjustments for 2016 are inclusive of approximately $530 million in unfavorable items, which include reserves for performance matters on an international program at RMS.
The consolidated net adjustments for 2015 are inclusive of approximately $550 million in unfavorable items, which include reserves for performance matters on an international program at RMS and on commercial satellite programs at Space Systems.
The consolidated net adjustments for 2014 are inclusive of approximately $535 million in unfavorable items, which include reserves recorded on certain training and logistics solutions programs at RMS and net warranty reserve adjustments for various programs (including JASSM and GMLRS) at MFC as described in the respective business segment’s results of operations below.
Aeronautics Our Aeronautics business segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles and related technologies.
Aeronautics’ major programs include the F-35 Lightning II Joint Strike Fighter, C-130 Hercules, F-16 Fighting Falcon, C-5M Super Galaxy and F-22 Raptor.
Aeronautics’ operating results included the following (in millions):


NOTE 3—SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS We are designated as a Merchant Service Provider by MasterCard and an Independent Sales Organization by Visa.
These designations are dependent upon member clearing banks (“Member”) sponsoring us and our adherence to the standards of the networks.
We have primary financial institution sponsors in the various markets where we facilitate payment transactions with whom we have sponsorship or depository and clearing agreements.
These agreements allow us to route transactions under the member banks’ control and identification numbers to clear credit card transactions through MasterCard and Visa.
In certain markets, we are members in various payment networks, allowing us to process and fund transactions without third-party sponsorship.


Information Systems & Global Solutions Our IS&GS business segment provides advanced technology systems and expertise, integrated information technology solutions, and management services across a broad spectrum of applications for civil, defense, intelligence, and other government customers.
IS&GS has a portfolio of many smaller contracts as compared to our other business segments.
IS&GS has been impacted by the continued downturn in federal information technology budgets.
IS&GS’ operating results included the following (in millions):
2013 compared to 2012 IS&GS’ net sales decreased $479 million, or 5%, for 2013 compared to 2012.
The decrease was attributable to lower net sales of about $495 million due to decreased volume on various programs (command and control programs for classified customers, NGI, and ERAM programs); and approximately $320 million due to the completion of certain programs (such as Total Information Processing Support Services, the Transportation Worker Identification Credential (TWIC), and ODIN).
The decrease was partially offset by higher net sales of about $340 million due to the start-up of certain programs (such as the DISA GSM-O and the National Science Foundation Antarctic Support).
IS&GS’ operating profit decreased $49 million, or 6%, for 2013 compared to 2012.
The decrease was primarily attributable to lower operating profit of about $55 million due to certain programs nearing the end of their lifecycles, partially offset by higher operating profit of approximately $15 million due to the start-up of certain programs.
Adjustments not related to volume, including net profit booking rate adjustments and other matters, were comparable for 2013 compared to 2012.2012 compared to 2011 IS&GS’ net sales for 2012 decreased $535 million, or 6%, compared to 2011.
The decrease was attributable to lower net sales of approximately $485 million due to the substantial completion of various programs during 2011 (primarily JTRS; ODIN; and U. K.  Census); and about $255 million due to lower volume on numerous other programs (primarily Hanford;


| Minimum Target Maximum | Earnings Per Share ($) | Operating Cash Flow($ in Billions) |


| Years Ended December 31, | 2009 | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | General and administrative expense | Total expenses | Pretax loss |


| $ in millions Before Consolidation Consolidated Investment Products-2 Adjustments-3 Total | Year ended December 31, 2009 | Total operating revenues | Total operating expenses | Operating income | Equity in earnings of unconsolidated affiliates | Interest and dividend income | Other investment income/(losses) | Interest expense | Income before income taxes | Income tax provision | Net income | (Gains)/losses attributable to noncontrolling interests in consolidated entities, net | Net income attributable to common shareholders |


| BasePeriod Indexed Returns | Company/Index | A. O. Smith Corporation | S&P Mid Cap 400 Index | Russell 1000 Index |


| (In millions) Capital Leases Operating Leases Total | 2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total minimum lease payments | Less amount representing interest payments | Present value of minimum lease payments | (In millions) | U.S.: | Commercial and financial | Purchased receivables | Lease financing | Total U.S. | Non-U.S.: | Commercial and financial | Purchased receivables | Lease financing | Total non-U.S. | Total loans | Average loans and lease financing |


(1) Amount for 2011 reflects the conclusion of the IRS examination of Merck’s 2002-2005 federal income tax returns and the resolution of the interest rate swap dispute with the IRS, both as discussed below.
If the Company were to recognize the unrecognized tax benefits of $4.3 billion at December 31, 2011, the income tax provision would reflect a favorable net impact of $3.6 billion.
The Company is under examination by numerous tax authorities in various jurisdictions globally.
The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits as of December 31, 2011 could decrease by up to $600 million in the next 12 months as a result of various audit closures, settlements or the expiration of the statute of limitations.
The ultimate finalization of the Company’s examinations with relevant taxing authorities can include formal administrative and legal proceedings, which could have a significant impact on the timing of the reversal of unrecognized tax benefits.
The Company believes that its reserves for uncertain tax positions are adequate to cover existing risks or exposures.
Interest and penalties associated with uncertain tax positions amounted to a (benefit) expense of $(95) million in 2011, $144 million in 2010 and $(163) million in 2009.
Liabilities for accrued interest and penalties were $1.3 billion and $1.6 billion as of December 31, 2011 and 2010, respectively.
In April 2011, the IRS concluded its examination of Merck’s 2002-2005 federal income tax returns and as a result the Company was required to make net payments of approximately $465 million.
The Company’s unrecognized tax benefits for the years under examination exceeded the adjustments related to this examination period and therefore the Company recorded a net $700 million tax provision benefit in 2011.
This net benefit reflects the decrease of unrecognized tax benefits for the years under examination partially offset by increases to the unrecognized tax benefits for years subsequent to the examination period as a result of this settlement.
The Company disagrees with the IRS treatment of one issue raised during this examination and is appealing the matter through the IRS administrative process.
As previously disclosed, in October 2006, the Canada Revenue Agency (“CRA”) issued Merck a notice of reassessment containing adjustments related to certain intercompany pricing matters.
In February 2009, Merck and the CRA negotiated a settlement agreement in regard to these matters.
In accordance with the settlement, Merck paid an additional tax of approximately $300 million and interest of approximately $360 million with no additional amounts or penalties due on this assessment.
The settlement was accounted for in the first quarter of 2009.
Merck had previously established reserves for these matters.
A portion of the taxes paid is expected to be creditable for U. S.  tax purposes.
In addition, as previously disclosed, the CRA has proposed adjustments for 1999 and 2000 relating to other intercompany pricing matters and, in July 2011, the CRA issued assessments for other miscellaneous audit issues for tax years 2001-2004.
These adjustments would increase Canadian tax due by approximately $330 million plus approximately $380 million of interest through December 31, 2011.
The Company disagrees with the positions taken by the CRA and believes they are without merit.
The Company continues to contest the assessments through the CRA appeals process.
The CRA is expected to prepare similar adjustments for later years.
Management believes that resolution of these matters will not have a material effect on the Company’s financial position or liquidity.
As noted above, exchange losses for 2010 reflect losses relating to Venezuelan currency devaluations.
Effective January 11, 2010, the Venezuelan government devalued its currency from at BsF 2.15 per U. S.  dollar to a two-tiered official exchange rate at (1) “the essentials rate” at BsF 2.60 per U. S.  dollar and (2) “the non-essentials rate” at BsF 4.30 per U. S.  dollar.
In January 2010, the Company was required to remeasure its local currency operations in Venezuela to U. S.  dollars as the Venezuelan economy was determined to be hyperinflationary.
Throughout 2010, the Company settled its transactions at the essentials rate and therefore remeasured monetary assets and liabilities utilizing the essentials rate.
In December 2010, the Venezuelan government announced it would eliminate the essentials rate and, effective January 1, 2011, all transactions would be settled at the official rate of at BsF 4.30 per U. S.  dollar.
As a result of this announcement, the Company remeasured its December 31, 2010 monetary assets and liabilities at the new official rate.


| 12 Months Ended December 31, | (In Millions) | Net income | Interest expense | Income taxes | Depreciation | Amortization | Specified items | Adjusted EBITDA |


(1) Excludes repurchase activity of $9.3 billion and $5.6 billion reported in loans and leases on the Consolidated Balance Sheet at December 31, 2015 and 2014.
Global Corporate, Global Commercial and Business Banking Global Corporate, Global Commercial and Business Banking each include Business Lending and Global Transaction Services activities.
Business Lending includes various lending-related products and services, and related hedging activities, including commercial loans, leases, commitment facilities, trade finance, real estate lending and asset-based lending.
Global Transaction Services includes deposits, treasury management, credit card, foreign exchange and short-term investment products.
The table below presents a summary of the results, which exclude certain capital markets activity in Global Banking.


| Year ended December 31, | 2007 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments(1) | Related charges-2 | Income from continuing operations before income taxes and equity in earnings of operating joint ventures |


| Pension Benefits Other Benefits | 2004 | (In millions) | Components of net periodic benefit cost | Service cost | Interest cost | Expected return on plan assets | Amortization | – prior service costs (credits) | – actuarial loss | Multi-employer and other plans(a) | Settlement, curtailment and termination losses (gains)(b) | Net periodic benefit cost(c) |


Derivatives The Company periodically enters into foreign currency forward contracts with the objective of reducing exposure to cash flow volatility associated with its intercompany loans, foreign currency receivables and payables and anticipated purchases of certain raw materials used in operations.
These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions.
During the years ended December 31, 2016 and 2015, the Company entered into several forward currency contracts which qualified as net investment hedges, in order to mitigate a portion of its net European investments from foreign currency risk.
The effective portions of net investment hedges are recorded in other comprehensive income (OCI) as a component of Foreign currency translation adjustments in the accompanying Consolidated Statement of Income and Comprehensive Income.
Realized gains/(losses) are deferred in AOCI where they will remain until the net investments in the Companys European subsidiaries are divested.
Sixteen of these forward currency contracts matured during the year ended December 31, 2016.
The outstanding forward currency contacts have remaining maturities of less than one year.


3.
FAIR VALUE OFASSETS AND LIABILITIES The carrying value and fair value of financial instruments is presented in the below summary table.
The fair value of financial instruments held by consolidated investment products is presented in Note 20, "Consolidated Investment Products. "


| Year Ended December | $ in millions | Investment Banking | Institutional Client Services | Investing & Lending | Investment Management | Total net interest income | Year Ended December | $ in millions | Investment Banking | Institutional Client Services | Investing & Lending | Investment Management | Total depreciation and amortization1 | Year Ended December | $ in millions | Net revenues | Americas | Europe, Middle East and Africa | Asia | Total net revenues | Pre-tax earnings | Americas | Europe, Middle East and Africa | Asia | Subtotal | Corporate1 | Total pre-tax earnings | Net earnings | Americas | Europe, Middle East and Africa | Asia | Subtotal | Corporate | Total net earnings |


| Asset Derivative Instruments December 31, Liability Derivative Instruments December 31, | 2010 | Balance Sheet Location | (millions) | Commodity Derivative Instruments (Not Designated as Hedging Instruments) | Noncurrent Assets | Interest Rate Derivative Instrument Designated as Hedging Instrument)(1) | Total |


Notes to Consolidated Financial Statements Regulatory Tax Examinations The firm is subject to examination by the U. S.  Internal Revenue Service (IRS) and other taxing authorities in jurisdictions where the firm has significant business operations, such as the United Kingdom, Japan, Hong Kong, Korea and various states, such as New York.
The tax years under examination vary by jurisdiction.
The firm believes that during 2013, certain audits have a reasonable possibility of being completed.
The firm does not expect completion of these audits to have a material impact on the firms financial condition but it may be material to operating results for a particular period, depending, in part, on the operating results for that period.
The table below presents the earliest tax years that remain subject to examination by major jurisdiction.


| 2006 2005 | Research and development contract costs | Payroll and benefits | Professional fees | Other | Total | Pension and DB SERP | Years Ended December 31 | CMS Energy, including Consumers | Net periodic cost (credit) | Service cost | Interest expense | Expected return on plan assets | Amortization of: | Net loss | Prior service cost (credit) | Net periodic cost (credit) | Consumers | Net periodic cost (credit) | Service cost | Interest expense | Expected return on plan assets | Amortization of: | Net loss | Prior service cost (credit) | Net periodic cost (credit) |


| 2018 2017 | Year ended December 31Dollars in millions | Assets | Interest-earning assets | Investment securities | Loans | Interest-earning deposits with banks | Other | Total interest-earning assets/interest income | Liabilities | Interest-bearing liabilities | Interest-bearing deposits | Borrowed funds | Total interest-bearing liabilities/interest expense | Net interest income/margin (Non-GAAP) | Taxable-equivalent adjustments | Net interest income (GAAP) |


| October 1, 2006 | Goodwill and other intangibles | Other assets | Total assets | Deposits | Other liabilities | Total liabilities | Year ended December 31, (in millions) | Fair value hedge ineffective net gains/(losses)(a) | Cash flow hedge ineffective net gains/(losses)(a) | Cash flow hedging net gains/(losses) on forecasted transactions that failed tooccur(b) |


Table 1Financial Highlights


| 2010 2009 2008 | Basic earnings per share | As reported | Two-class method | Diluted earnings per share-1 | As reported | Two-class method |


VISA INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) September 30, 2012 acquired by the Company.
The EIP will continue to be in effect until all of the common stock available under the EIP is delivered and all restrictions on those shares have lapsed, unless the EIP is terminated earlier by the Companys board of directors.
No awards may be granted under the plan on or after 10 years from its effective date.
Share-based compensation cost is recorded net of estimated forfeitures on a straight-line basis for awards with service conditions only, and on a graded-vesting basis for awards with service, performance and market conditions.
The Companys estimated forfeiture rate is based on an evaluation of historical, actual and trended forfeiture data.
For fiscal 2012, 2011, and 2010, the Company recorded share-based compensation cost of $147 million, $154 million and $135 million, respectively, in personnel on its consolidated statements of operations.
The amount of capitalized share-based compensation cost was immaterial during fiscal 2012, 2011, and 2010.
Options Options issued under the EIP expire 10 years from the date of grant and vest ratably over three years from the date of grant, subject to earlier vesting in full under certain conditions.
During fiscal 2012, 2011 and 2010, the fair value of each stock option was estimated on the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions:


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS We record tax benefits for positions that we believe are more likely than not of being sustained under audit examinations.
We assess the potential outcome of such examinations to determine the adequacy of our income tax accruals.
We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of Income.
We adjust our income tax provision during the period in which we determine that the actual results of the examinations may differ from our estimates or when statutory terms expire.
Changes in tax laws and rates are reflected in our income tax provision in the period in which they are enacted.


Valuation of Goodwill and Other Intangible Assets Description Goodwill and other intangible assets are evaluated for impairment on an annual basis as of November 30 and in interim periods when events or changes indicate the carrying value may not be recoverable, such as a significant deterioration in the operating environment or a decision to sell or dispose of a reporting unit.
Goodwill and other intangible assets net of amortization were $1.8 billion and $0.2 billion, respectively, at December 31, 2013.
Judgments Goodwill is allocated to reporting units, which are components of the business that are one level below operating segments.
Reporting units are evaluated for impairment individually during the annual assessment.
Estimating the fair value of reporting units and the assets, liabilities and intangible assets of a reporting unit is a subjective process that involves the use of estimates and judgments, particularly related to cash flows, the appropriate discount rates and an applicable control premium.
Management judgment is required to assess whether the carrying value of the reporting unit can be supported by the fair value of the individual reporting unit.
There are various valuation methodologies, such as the market approach or discounted cash flow methods, that may be used to estimate the fair value of reporting units.
In applying these methodologies, we utilize a number of factors, including actual operating results, future business plans, economic projections, and market data.
The following table shows the comparative data for the amount of goodwill allocated to our reporting units (dollars in millions):


| Property Fair Value -1  (In millions) Maturity Date Stated Annual  Interest Rate | THE AVENUE at White Marsh | White Marsh Plaza | White Marsh Plaza | White Marsh Other | Shoppers’ World |


| North America Asia Europe Total | December 27, 2008 | Net sales to external customers | Long lived assets | Net assets | December 29, 2007 | Net sales to external customers | Long-lived assets | Net assets | December 30, 2006 | Net sales to external customers | Long-lived assets | Net assets |


| Millions of Dollars Dec. 31, 2009 Dec. 31, 2008 | Accounts payable | Accrued wages and vacation | Accrued casualty costs | Income and other taxes | Dividends and interest | Equipment rents payable | Other | Total accounts payable and other current liabilities |


| (dollars in millions) 2016 2017 2018 | Operating Cash Flow | Percent of sales | Capital Expenditures | Percent of sales | Free Cash Flow(Operating Cash Flow less Capital Expenditures) | Percent of sales | Operating Working Capital | Percent of sales |


| Year ended December 31 Shares Price Per Share | 2009 | 2008 | 2007 |


| Year ended December 31, (in millions)(a) 2005 2004 | Fair value hedge ineffective net gains/(losses)(b) | Cash flow hedge ineffective net gains/(losses)(b) | Cash flow hedging gains on forecastedtransactions that failed to occur |


| For the year ended | 12-31-07 | Rental income | Operating and other expenses | Interest expense, net | Depreciation expense | Income from discontinuedoperations |


CF INDUSTRIES HOLDINGS, INC.  126 19.
Stock-Based Compensation 2014 Equity and Incentive Plan On May 14, 2014, our shareholders approved the CF Industries Holdings, Inc.  2014 Equity and Incentive Plan (the 2014 Equity and Incentive Plan) which replaced the CF Industries Holdings, Inc.  2009 Equity and Incentive Plan.
Under the 2014 Equity and Incentive Plan, we may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (payable in cash or stock) and other stock-based awards to our officers, employees, consultants and independent contractors (including non-employee directors).
The purpose of the 2014 Equity and Incentive Plan is to provide an incentive for our employees, officers, consultants and non-employee directors that is aligned with the interests of our stockholders.
Share Reserve and Individual Award Limits The maximum number of shares reserved for the grant of awards under the 2014 Equity and Incentive Plan is the sum of (i) 13.9 million and (ii) the number of shares subject to outstanding awards under our predecessor plans to the extent such awards terminate or expire without delivery of shares.
For purposes of determining the number of shares of stock available for grant under the 2014 Equity and Incentive Plan, each option or stock appreciation right is counted against the reserve as one share.
Each share of stock granted, other than an option or a stock appreciation right, is counted against the reserve as 1.61 shares.
If any outstanding award expires or is settled in cash, any unissued shares subject to the award are again available for grant under the 2014 Equity and Incentive Plan.
Shares tendered in payment of the exercise price of an option and shares withheld by the Company or otherwise received by the Company to satisfy tax withholding obligations are not available for future grant under the 2014 Equity and Incentive Plan.
As of December 31, 2016, we had 11.7 million shares available for future awards under the 2014 Equity and Incentive Plan.
The 2014 Equity and Incentive Plan provides that no more than 5.0 million underlying shares may be granted to a participant in any one calendar year.
Stock Options Under the 2014 Equity and Incentive Plan and our predecessor plans, we granted to plan participants nonqualified stock options to purchase shares of our common stock.
The exercise price of these options is equal to the market price of our common stock on the date of grant.
The contractual life of each option is ten years and generally one-third of the options vest on each of the first three anniversaries of the date of grant.
The fair value of each stock option award is estimated using the Black-Scholes option valuation model.
Key assumptions used and resulting grant date fair values are shown in the following table.


| Foreign currency translation adjustment Unrealized holding gains (losses) on available for sale securities Unrealized holding gains (losses) on derivatives Pension plans Total | November 3, 2018 | Other comprehensive (loss) income before reclassifications | Amounts reclassified out of other comprehensive loss | Tax effects | Other comprehensive (loss) income | November 2, 2019 | (in millions) | Gross amount of interest income that would have been recorded-1 | Interest income actually recognized | Total interest income foregone |


(4) Additions include $500 million and $700 million for 2009 and 2008, respectively, representing transfers of externally-managed client balances to accounts we manage.
These additions are offset within Other, as there is no net impact on ending account values for these transfers.
(5) Withdrawals and benefits include $(752) million and $(488) million for 2010 and 2009, respectively, representing transfers of client balances from accounts we managed to externally-managed accounts.
These withdrawals are offset within Other, as there is no net impact on ending account values for this transfer.
(6) Other includes transfers from (to) the Asset Management segment of $(164) million, $(11) million and $432 million for 2010, 2009 and 2008, respectively.
Other also includes $752 million, $(12) million and $(700) million in 2010, 2009 and 2008, respectively, representing net transfers of externally-managed client balances from/(to) accounts we manage.
These transfers are offset within Additions or Withdrawals and benefits, as there is no net impact on ending account values for this transfer.
Other also includes $1,500 million for 2009 representing collateralized funding agreements issued to the FHLBNY and $(1,522) million for 2009 representing terminations of affiliated funding agreements utilizing proceeds from the issuances to FHLBNY.
Remaining amounts for all periods presented primarily represent changes in asset balances for externally-managed accounts.2010 to 2009 Annual Comparison.
Account values in our full service business amounted to $141.3 billion as of December 31, 2010, an increase of $15.0 billion from December 31, 2009 primarily driven by an increase in the market value of customer funds due to favorable equity markets and, to a lesser extent, net additions in 2010.
Net additions decreased $6.3 billion, from $8.8 billion in 2009 to $2.5 billion in 2010, primarily reflecting lower new plan sales, as 2009 included significant large plan sales, and, to a lesser extent, higher plan lapses.
New plan sales in 2010 included twelve client sales over $100 million totaling $3.3 billion compared to twelve client sales over $100 million in 2009, which totaled $7.5 billion.
Account values in our institutional investment products business amounted to $64.2 billion as of December 31, 2010, an increase of $12.3 billion from December 31, 2009.
The increase in account values was primarily driven by additions of fee-based investment-only stable value products and increases in the market value of customer funds, primarily from a decline in fixed income market yields and interest credited on general account liabilities.
These increases were partially offset by declines in general account guaranteed investment product account values due to scheduled withdrawals.
Net additions (withdrawals) increased $8.4 billion, from net withdrawals of $31 million in 2009 to net additions of $8.3 billion in 2010 primarily reflecting higher sales of fee-based investment-only stable value products and lower general account guaranteed investment product scheduled withdrawals.
In addition, sales of guaranteed investment products in the institutional and retail markets continue to be negatively impacted by capital market conditions.2009 to 2008 Annual Comparison.
Account values in our full service business amounted to $126.3 billion as of December 31, 2009, an increase of $26.6 billion from December 31, 2008.
The increase in account values was primarily driven by an increase in the market value of customer funds due to equity market appreciation and, to a lesser extent, by net additions.
Net additions increased $4.9 billion, from $3.9 billion in 2008 to $8.8 billion in 2009, primarily reflecting higher new plan sales and, to a lesser extent, lower plan lapses.
New plan sales in 2009 included twelve client sales over $100 million, totaling $7.5 billion, compared to ten client sales over $100 million in 2008, which totaled $4.5 billion.
Account values in our institutional investment products business amounted to $51.9 billion as of December 31, 2009, an increase of $1.4 billion from December 31, 2008.
The increase in account values was primarily driven by increases in the market value of customer funds, primarily from interest credited on general account business and credit spread tightening in the fixed income markets, partially offset by net outflows from externally managed accounts.
Net withdrawals decreased $1.6 billion, from $1,654 million in 2008 to $31 million in 2009.
This decrease primarily reflects higher sales of investment-only, fee-based stable value products, which more than offset lower sales of guaranteed investment products in the institutional and retail markets.
Sales of our retail notes and institutional notes were negatively impacted by unfavorable capital markets conditions, in particular during the second half of 2008 and through 2009, reflecting the extreme stress experienced by global financial markets from the second half of 2007 through the early portion of 2009.


| December 31, | 2012 | Shares outstanding (actual number) | Conversion rate per share | Conversion price | Conversion shares |


| Pension Benefits Other Postretirement Benefits | (in millions) | Amortization of transition obligation | Amortization of prior service cost | Amortization of actuarial (gain) loss, net | Total | Pension Benefits | 2010 | Weighted-average assumptions | Discount rate (beginning of period) | Discount rate (end of period) | Rate of increase in compensation levels (beginning of period) | Rate of increase in compensation levels (end of period) | Expected return on plan assets (beginning of period) | Health care cost trend rates (beginning of period) | Health care cost trend rates (end of period) | For 2010, 2009 and 2008, the ultimate health care cost trend rate after gradual decrease until: 2015, 2014, 2012 (beginning ofperiod) | For 2010, 2009 and 2008, the ultimate health care cost trend rate after gradual decrease until: 2017, 2015, 2014 (end ofperiod) |


| December 31 | (Dollars in millions) | Trading account assets | U.S. government and agency securities-1 | Corporate securities, trading loans and other | Equity securities | Foreign sovereign debt | Mortgage trading loans and asset-backed securities | Total trading account assets | Trading account liabilities | U.S. government and agency securities | Equity securities | Foreign sovereign debt | Corporate securities and other | Total trading account liabilities |


Sale of Citigroups German Retail Banking Operations On December5, 2008, Citigroup sold its German retail banking operations to CrÃ©dit Mutuel for 5.2 billion Euro in cash plus the German retail banks operating net earnings accrued in 2008 through the closing.
The sale resulted in an after-tax gain of approximately $3.9 billion, including the after-tax gain on the foreign currency hedge of $383 million recognized during the fourth quarter of 2008.
The sale does not include the corporate and investment banking business or the Germany-based European data center.
The German retail banking operations had total assets and total liabilities as of November30, 2008 of $15.6 billion and $11.8 billion, respectively.
Results for all of the German retail banking businesses sold, as well as the net gain recognized in 2008 from this sale, are reported as Discontinued operations for all periods presented.
Summarized financial information for Discontinued operations, including cash flows, related to the sale of the German retail banking operations is as follows:


| Year Ended December 31, | 2012 | % of | $ | ($ in thousands) | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses |


| Accumulated Other Comprehensive Income | Preferred   Stock | Balance at January 1, 2005 | Treasury stock transactions, net | Common stock issued in connection with acquisition | Issuance of preferred stock | Issuance of stock purchase contracts related to common equity units | Dividends on preferred stock | Dividends on common stock | Comprehensive income: | Net income | Other comprehensive income (loss): | Unrealized gains (losses) on derivative instruments, net of income tax | Unrealized investment gains (losses), net of related offsets and income tax | Foreign currency translation adjustments, net of income tax | Additional minimum pension liability adjustment, net of income tax | Other comprehensive income (loss) | Comprehensive income | Balance at December 31, 2005 | Treasury stock transactions, net | Dividends on preferred stock | Dividends on common stock | Comprehensive income: | Net income | Other comprehensive income (loss): | Unrealized gains (losses) on derivative instruments, net of income tax | Unrealized investment gains (losses), net of related offsets and income tax | Foreign currency translation adjustments, net of income tax | Additional minimum pension liability adjustment, net of income tax | Other comprehensive income (loss) | Comprehensive income | Adoption of SFAS 158, net of income tax | Balance at December 31, 2006 | Cumulative effect of changes in accounting principles, net of income tax (Note 1) | Balance at January 1, 2007 | Treasury stock transactions, net | Obligation under accelerated common stock repurchase agreement (Note 18) | Dividends on preferred stock | Dividends on common stock | Comprehensive income: | Net income | Other comprehensive income (loss): | Unrealized gains (losses) on derivative instruments, net of income tax | Unrealized investment gains (losses), net of related offsets and income tax | Foreign currency translation adjustments, net of income tax | Defined benefit plans adjustment, net of income tax | Other comprehensive income (loss) | Comprehensive income | Balance at December 31, 2007 |


| 2017 2016 2015 | Operating profit, as reported | Rationalization charges | Gain from sale of property and equipment | Operating profit, as adjusted | Operating profit margins, as reported | Operating profit margins, as adjusted |


| For the Year Ended December 31 | 2013 | Sales | Operating profit | Depreciation and amortization | Operating profit as a % of sales | Depreciation and amortization as a % of sales | 2013 vs. 2012 | Existing businesses | Acquisitions | Currency exchange rates | Total |


| $ Change (In millions) % Change | International | Corporate & Other | Reinsurance | Institutional | Auto & Home | Individual | Total change |


| 2014 2013 2012 | Solid Waste | Wheelabrator | Corporate and Other | $82 |


business restructuring actions, including the settlement of a long-term take-or-pay silane contract.
The current year payments were partially offset by a $69.7 net increase to accrued liabilities for the current year cost reduction and business restructuring actions.
For the year ended 2012, cash provided by operating activities was $1,765.1.
Income from continuing operations of $999.2 reflected the non-cash gain on the previously held equity interest in DA NanoMaterials of $85.9, the writedown of long-lived assets associated with restructuring and a customer bankruptcy of $80.2, and a non-cash tax benefit of $58.3 recognized as a result of the second quarter Spanish tax ruling.
The working capital accounts were a source of cash of $100.1.
The provision for the cost reduction and business restructuring plans resulted in an increase to accrued liabilities of $223.9, partially offset by a use of cash of $32.9 for payments made in relation to these plans.
For the year ended 2011, cash provided by operating activities was $1,710.4.
Income from continuing operations of $1,134.3 reflected the non-cash net loss of $48.5 related to the Airgas transaction.
We also made cash payments of $156.2 related to the Airgas transaction.
The working capital accounts were a use of cash of $114.6, including $107.5 for an increase in inventory primarily to support growth in our Performance Materials business.
Investing Activities For the year ended 30 September 2013, cash used for investing activities was $1,697.0, primarily driven by capital expenditures for plant and equipment and acquisitions.
For the year ended 30 September 2012, cash used for investing activities was $2,435.2, primarily driven by capital expenditures for plant and equipment, acquisitions, and investments in unconsolidated affiliates.
Refer to the Capital Expenditures section below for additional detail.
For the year ended 30 September 2011, cash used for investing activities was $1,169.8, primarily driven by capital expenditures for plant and equipment.
We received proceeds of $94.7 from the sale of approximately 1.5 million shares of Airgas stock.
Refer to Note 6, Airgas Transaction, to the consolidated financial statements for additional information regarding this transaction.


| National City Pension Plan Percentage of Plan Assets  December 31 2008 | Asset Category | Equity securities | Fixed income securities | Cash and cash equivalents | Total |


| September 30, | 2010 | (in 000's) | Standby Letters of Credit-1 | Open End Consumer Lines of Credit | Commercial Lines of Credit | Unfunded Loan Commitments - Variable Rate-1 | Unfunded Loan Commitments – Fixed Rate |


| Volume   (dekatherms/day) Expiration | ANR Pipeline Company | Great Lakes Gas Transmission, L.P | Great Lakes Gas Transmission, L.P | Trunkline Gas Company | Panhandle Eastern Pipe Line Company (starting 4/01/09) | Panhandle Eastern Pipe Line Company (starting 4/01/10) | Panhandle Eastern Pipe Line Company (starting 4/01/11) | Panhandle Eastern Pipe Line Company (starting 4/01/12) | Panhandle Eastern Pipe Line Company (starting 4/01/13) | Panhandle Eastern Pipe Line Company | Vector Pipeline |


Free Cash Flow Conversion Rate and Total Cash Returned to Shareholders as a Percentage of Free Cash Flow We believe these measures provide useful information to investors because they are important for assessing our efficiency in converting earnings to cash and returning cash to shareholders.
The calculation of free cash flow conversion rate and net cash provided by operating activities conversion rate, its equivalent GAAP measure, follows:


PRINTING PAPERS net sales for 2006 decreased 3% from both 2005 and 2004 due principally to the sale of the U. S.  coated papers business in August 2006.
However, operating profits in 2006 were 43% higher than in 2005 and 33% higher than in 2004.
Compared with 2005, earnings improved for U. S.  uncoated papers, market pulp and European Papers, but this was partially offset by earnings declines in Brazilian papers.
Benefits from higher average sales price realizations in the United States, Europe and Brazil ($284 million), improved manufacturing operations ($73 million), reduced lack-of-order downtime ($41 million), higher sales volumes in Europe ($23 million), and other items ($65 million) were partially offset by higher raw material and energy costs ($109 million), higher freight costs ($45 million) and an impairment charge to reduce the carrying value of the fixed assets at the Saillat, France mill ($128 million).
Compared with 2004, higher earnings in 2006 in the U. S.  uncoated papers, market pulp and coated papers businesses were offset by lower earnings in the European and Brazilian papers businesses.
The printing papers segment took 555,000 tons of downtime in 2006, including 150,000 tons of lack-of-order downtime to align production with customer demand.
This compared with 970,000 tons of total downtime in 2005, of which 520,000 tons related to lack-of-orders.


| For the year ended December 31, | 2008 | (in millions) | Current income taxes: | U.S. federal | State and foreign | Total current income taxes | Deferred income taxes | Total income taxes (benefits) | For the year ended December 31, | 2008 | (in millions, except per share data) | Income from continuing operations, net of related income taxes | Subtract: | Preferred stock dividends | Income from continuing operations available to common stockholders, net of related income taxes | Weighted-average shares outstanding: | Basic | Dilutive effects: | Stock options | Performance share awards | Restricted stock units | Diluted | Income from continuing operations per common share: | Basic | Diluted | For the three months ended | December 31 | (in millions, except per share data) | 2008 | Total revenues | Total expenses | Income from continuing operations, net of related income taxes | Preferred stock dividends | Net income (loss) available to common stockholders | Basic earnings (loss) per common share for income from continuing operations, net of related income taxes | Basic earnings (loss) per common share for net income available to common stockholders | Diluted earnings (loss) per common share for income from continuing operations, net of related income taxes | Diluted earnings (loss) per common share for net income available to common stockholders | 2007 | Total revenues | Total expenses | Income from continuing operations, net of related income taxes | Income (loss) from discontinued operations, net of related income taxes | Preferred stock dividends | Net income available to common stockholders | Basic earnings per common share for income from continuing operations, net of related income taxes | Basic earnings per common share for net income available to common stockholders | Diluted earnings per share for income from continuing operations, net of related income taxes | Diluted earnings per common share for net income available to common stockholders | For the year ended December 31, | 2008 | (in millions) | Dividends to stockholders | Repurchase of common stock | Total cash returned to stockholders | Number of shares repurchased |


and machine tooling to enhance manufacturing operations, and ongoing replacements of manufacturing and distribution equipment.
Capital spending in all three years also included spending for the replacement and enhancement of the company’s global enterprise resource planning (ERP) management information systems, as well as spending to enhance the company’s corporate headquarters and research and development facilities in Kenosha, Wisconsin.
Snap-on believes that its cash generated from operations, as well as its available cash on hand and funds available from its credit facilities will be sufficient to fund the company’s capital expenditure requirements in 2013.
In 2010, Snap-on acquired the remaining 40% interest in Snap-on Asia Manufacturing (Zhejiang) Co. , Ltd. , the company’s tool manufacturing operation in Xiaoshan, China, for a purchase price of $7.7 million and $0.1 million of transaction costs; Snap-on acquired the initial 60% interest in 2008.
See Note 2 to the Consolidated Financial Statements for additional information.
Financing Activities Net cash used by financing activities was $127.0 million in 2012.
Net cash used by financing activities of $293.7 million in 2011 included the August 2011 repayment of $200 million of unsecured 6.25% notes upon maturity with available cash.
In December 2010, Snap-on sold $250 million of unsecured 4.25% long-term notes at a discount; Snap-on is using, and has used, the $247.7 million of proceeds from the sale of these notes, net of $1.6 million of transaction costs, for general corporate purposes, which included working capital, capital expenditures, repayment of all or a portion of the company’s $200 million, 6.25% unsecured notes that matured in August 2011, and the financing of finance and contract receivables, primarily related to SOC.
In January 2010, Snap-on repaid $150 million of unsecured floating rate debt upon maturity with available cash.
Proceeds from stock purchase and option plan exercises totaled $46.8 million in 2012, $25.7 million in 2011 and $23.7 million in 2010.
Snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans, stock options and other corporate purposes.
In 2012, Snap-on repurchased 1,180,000 shares of its common stock for $78.1 million under its previously announced share repurchase programs.
As of 2012 year end, Snap-on had remaining availability to repurchase up to an additional $180.9 million in common stock pursuant to its Board of Directors’ (the “Board”) authorizations.
The purchase of Snap-on common stock is at the company’s discretion, subject to prevailing financial and market conditions.
Snap-on repurchased 628,000 shares of its common stock for $37.4 million in 2011; Snap-on repurchased 152,000 shares of its common stock for $8.7 million in 2010.
Snap-on believes that its cash generated from operations, available cash on hand, and funds available from its credit facilities, will be sufficient to fund the company’s share repurchases, if any, in 2013.
Snap-on has paid consecutive quarterly cash dividends, without interruption or reduction, since 1939.
Cash dividends paid in 2012, 2011 and 2010 totaled $81.5 million, $76.7 million and $71.3 million, respectively.
On November 1, 2012, the company announced that its Board increased the quarterly cash dividend by 11.8% to $0.38 per share ($1.52 per share per year).
Quarterly dividends declared in 2012 were $0.38 per share in the fourth quarter and $0.34 per share in the first three quarters ($1.40 per share for the year).
Quarterly dividends in 2011 were $0.34 per share in the fourth quarter and $0.32 per share in the first three quarters ($1.30 per share for the year).
Quarterly dividends in 2010 were $0.32 per share in the fourth quarter and $0.30 per share in the first three quarters ($1.22 per share for the year).


| Pension Benefits Post-Retirement Benefits | 2011 | Weighted-average assumptions used to determine benefit obligations | Discount rate | Rate of compensation increase | Weighted-average assumptions used to determine net periodic benefit cost | Discount rate | Expected return on plan assets | Rate of compensation increase |


| December 31, (in millions) 2014 2013 2012 | Consumer & Community Banking | Corporate & Investment Bank | Commercial Banking | Asset Management | Corporate(a) | Total goodwill | Year ended December 31,(in millions) | Balance at beginning of period | Changes during the period from: | Business combinations | Dispositions | Other(a) | Balance at December 31, |


| Estimated Payments Due by Period | Total | (in millions) | Short-term and long-term debt obligations-1 | Operating and capital lease obligations-2 | Purchase obligations: | Commitments to purchase or fund investments-3 | Commercial mortgage loan commitments-4 | Other liabilities: | Insurance liabilities-5 | Other-6 | Total |


| As of February 22, 2013 Moody’s Standard and Poor’s Fitch DBRS | Fifth Third Bancorp: | Short-term | Senior debt | Subordinated debt | Fifth Third Bank: | Short-term | Long-term deposit | Senior debt | Subordinated debt |


| (Aggregate Intrinsic Value in thousands) Weighted- Average Exercise Price/Share Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value | Options | Outstanding at January 1, 2018 | Granted | Exercised | Forfeited/Cancelled/Expired | Outstanding at December 31, 2018 | Exercisable at December 31, 2018 |


| Year Ended December 31, | (millions of dollars) | Defined contribution expense | Defined benefit pension expense | Other postretirement employee benefit expense | Total | Year Ended December 31, | 2008 | Electric Energy Delivered (millions of kWhs) | Total deliveries to O&R full service customers | Delivery service for retail access customers | Total Deliveries In Franchise Area | Electric Energy Delivered ($ in millions) | Total deliveries to O&R full service customers | Delivery service for retail access customers | Other operating revenues | Total Deliveries In Franchise Area | Average Revenue Per kWh Sold (Cents) | Residential | Commercial and Industrial | Support and Service Revenue | 2013 | Support and service | Percentage of total revenue | Year over Year Change | $ Change | In-House Support & Other Services | Electronic Payment Services | Outsourcing Services | Implementation Services | Total Increase | Hardware Revenue | Change | 2013 | Hardware | Percentage of total revenue |


| (Dollars in millions) 2017 2016 2015 | Operating activities | Net income | Reconciliation of net income to net cash provided by (used in) operating activities: | Equity in undistributed (earnings) losses of subsidiaries | Other operating activities, net | Net cash provided by (used in) operating activities | Investing activities | Net sales of securities | Net payments to subsidiaries | Other investing activities, net | Net cash used in investing activities | Financing activities | Net decrease in short-term borrowings | Net decrease in other advances | Proceeds from issuance of long-term debt | Retirement of long-term debt | Proceeds from issuance of preferred stock | Common stock repurchased | Cash dividends paid | Net cash used in financing activities | Net decrease in cash held at bank subsidiaries | Cash held at bank subsidiaries at January 1 | Cash held at bank subsidiaries at December 31 |


| Planned construction and capital investments 2014 2015 2016 | (In Millions) | Utility: | Generation | Transmission | Distribution | Other | Total | Entergy Wholesale Commodities | Total |


| Year ended December 31, | (Dollars in thousands) | Net interest income | Reduction of (provision for) loan losses | Noninterest income | Noninterest expense | Income before income tax expense | Total average loans, net of unearned income | Total average assets | Total average deposits |


| 3.2.2 By-laws of CECONY, effective May 18, 2015. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015 (File No. 1-1217) as Exhibit 3.2) | 4.2.1 | 4.2.2 | 4.2.3 | 4.2.4 | 4.2.5 | 4.2.6 | 4.2.7 | 4.2.8.1 | 4.2.8.2 | 4.2.9.1 | 4.2.9.2 | 4.2.10 | 4.2.11 |


Notes to Consolidated Financial Statements  (Continued) (Amounts in Millions, Except Per Share Amounts) Guarantees We have guarantees of certain obligations of our subsidiaries relating principally to credit facilities, certain media payables and operating leases of certain subsidiaries.
The amount of such parent company guarantees was $769.3 and $706.7 as of December 31, 2009 and 2008, respectively.
In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee.
As of December 31, 2009, there are no material assets pledged as security for such parent company guarantees.
Contingent Acquisition Obligations The following table details the estimated future contingent acquisition obligations payable in cash as of December 31, 2009.
The estimated amounts listed would be paid in the event of exercise at the earliest exercise date.
See Note 6 for further information relating to the payment structure of our acquisitions.
All payments are contingent upon achieving projected operating performance targets and satisfying other conditions specified in the related agreements and are subject to revisions as the earn-out periods progress.


| Year Ended December 31, | 2009 | (MMBOE) | Proved Reserves Beginning of Year | Revisions of Previous Estimates | Extensions, Discoveries and Other Additions | Purchase of Minerals in Place | Sale of Minerals in Place | Production | Proved Reserves End of Year |


| Years Ended December 31, | 2008 | (In millions, except per share data) | Other Data -1 | Net income available to common shareholders | Return on common equity -7 | Return on common equity, excluding accumulated other comprehensive income (loss) | EPS Data -1 | Income from Continuing Operations Available to Common Shareholders Per Common Share | Basic | Diluted | Income (Loss) from Discontinued Operations Per Common Share | Basic | Diluted | Cumulative Effect of a Change in Accounting Per Common Share -3 | Basic | Diluted | Net Income Available to Common Shareholders Per Common Share | Basic | Diluted | Dividends Declared Per Common Share |


| At December 31, 2013 Retail Group,Voluntary& WorksiteBenefits CorporateBenefitFunding LatinAmerica Asia -1 EMEA Corporate& Other Total | (In millions) | Total assets | Separate account assets | Separate account liabilities |


| Year Ended December 31, Change | (in thousands, except percentages) | Revenue: | Lease licenses | Perpetual licenses | Software licenses | Maintenance | Service | Maintenance and service | Total revenue |


Table of Contents was recently issued a Notice of Noncompliance and Show Cause Notification relating to certain federally enforceable requirements applicable to the Elkton facility.
The Company is attempting to resolve these alleged violations by way of settlement but will defend itself if settlement cannot be reached.
The Company and its subsidiaries are parties to a number of proceedings brought under the Comprehensive Environmental Response, Compensation and Liability Act, commonly known as Superfund, and other federal and state equivalents.
These proceedings seek to require the operators of hazardous waste disposal facilities, transporters of waste to the sites and generators of hazardous waste disposed of at the sites to clean up the sites or to reimburse the government for cleanup costs.
The Company has been made a party to these proceedings as an alleged generator of waste disposed of at the sites.
In each case, the government alleges that the defendants are jointly and severally liable for the cleanup costs.
Although joint and several liability is alleged, these proceedings are frequently resolved so that the allocation of cleanup costs among the parties more nearly reflects the relative contributions of the parties to the site situation.
The Company’s potential liability varies greatly from site to site.
For some sites the potential liability is de minimis and for others the final costs of cleanup have not yet been determined.
While it is not feasible to predict the outcome of many of these proceedings brought by federal or state agencies or private litigants, in the opinion of the Company, such proceedings should not ultimately result in any liability which would have a material adverse effect on the financial position, results of operations, liquidity or capital resources of the Company.
The Company has taken an active role in identifying and accruing for these costs and such amounts do not include any reduction for anticipated recoveries of cleanup costs from former site owners or operators or other recalcitrant potentially responsible parties.
In management’s opinion, the liabilities for all environmental matters that are probable and reasonably estimable have been accrued and totaled $83 million and $109 million at December 31, 2016 and 2015 , respectively.
These liabilities are undiscounted, do not consider potential recoveries from other parties and will be paid out over the periods of remediation for the applicable sites, which are expected to occur primarily over the next 15 years.
Although it is not possible to predict with certainty the outcome of these matters, or the ultimate costs of remediation, management does not believe that any reasonably possible expenditures that may be incurred in excess of the liabilities accrued should exceed $64 million in the aggregate.
Management also does not believe that these expenditures should result in a material adverse effect on the Company’s financial position, results of operations, liquidity or capital resources for any year.11.
Equity The Merck certificate of incorporation authorizes 6,500,000,000 shares of common stock and 20,000,000 shares of preferred stock.
Capital Stock A summary of common stock and treasury stock transactions (shares in millions) is as follows:


Note 13 Employee Benefit Plans Employee Bonus Plans Applied has various employee bonus plans.
A discretionary bonus plan provides for the distribution of a percentage of pretax income to Applied employees who are not participants in other performance-based incentive plans, up to a maximum percentage of eligible compensation.
Other plans provide for bonuses to Applieds executives and other key contributors based on the achievement of profitability and/or other specified performance criteria.
Charges under these plans were $269 million for fiscal 2013, $271 million for fiscal 2012, and $319 million charges for fiscal 2011.
Employee Savings and Retirement Plan Applieds Employee Savings and Retirement Plan (the 401(k) Plan) is qualified under Sections 401(a) and (k) of the Internal Revenue Code (the Code).
Effective as of the close of the stock market on December 31, 2012, the Varian-sponsored 401(k) plan was merged with and into the 401(k) Plan, with the 401(k) Plan being the surviving plan.
Eligible employees may make salary deferral and catch-up contributions under the 401(k) Plan on a pre-tax basis and/or (effective as of the first payroll period beginning on or after December 22, 2012) on a Roth basis, subject to an annual dollar limit established by the Code.
Applied matches 100% of participant salary and/or Roth deferral contributions up to the first 3% of eligible contribution and then 50% of every dollar between 4% and 6% of eligible contribution.
Applied does not make matching contributions on any catch-up contributions made by participants.
Plan participants who were employed by Applied or any of its affiliates on or after January 1, 2010 became 100% vested in their Applied matching contribution account balances.
Applieds matching contributions under the 401(k) Plan were approximately $29 million, net of $1 million in forfeitures for fiscal 2013, $37 million for fiscal 2012 and $27 million for fiscal 2011.


| Year Ended December 31, | (in thousands) | Foreign currency losses, net | Other income (expense), net | Total other expense, net |


| Accruing | In millions | December 31, 2012 | Commercial | Commercial real estate | Equipment lease financing | Home equity (c) | Residential real estate (d) | Credit card | Other consumer (e) | Total | Percentage of total loans | December 31, 2011 | Commercial | Commercial real estate | Equipment lease financing | Home equity (c) | Residential real estate (d) | Credit card | Other consumer (e) | Total | Percentage of total loans |


In July 2006, the FASB issued Interpretation (FIN) No.48, “Accounting for Uncertainty in Income Taxes - An Interpretation of FASB Statement No.109.
” This Interpretation clarifies the accounting for uncertainty in income taxes recognized in accordance with SFAS No.109, “Accounting for Income Taxes.
” This Interpretation also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
This Interpretation also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.
The evaluation of a tax position in accordance with this Interpretation is a two-step process.
The first step is a recognition process to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 96 Fifth Third Bancorp Financial Instruments Pertaining to SFAS No.107, "Disclosures about Fair Value of Financial Instruments" The following table summarizes carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments recorded at fair value on a recurring basis at December 31:


| Years ended December 31, | 2008 | Cash used for investing activities | Less: Cash generated from investing activities related to Pret A Manger transaction | Less: Cash generated from investing activities related to Redboxtransaction | Adjusted cash used for investing activities | AS A PERCENT | Quarters ended: | March 31 | June 30 | September 30 | December 31 |


Stock Performance Graph The following graph sets forth the cumulative total shareholder return on our Series A common stock, Series B common stock and Series C common stock as compared with the cumulative total return of the companies listed in the Standard and Poors 500 Stock Index (S&P 500 Index) and a peer group of companies comprised of CBS Corporation Class B common stock, News Corporation Class A common stock, Scripps Network Interactive, Inc. , Time Warner, Inc. , Viacom, Inc.  Class B common stock and The Walt Disney Company.
The graph assumes $100 originally invested on September 18, 2008, the date upon which our common stock began trading, in each of our Series A common stock, Series B common stock and Series C common stock, the S&P 500 Index, and the stock of our peer group companies, including reinvestment of dividends, for the period September 18, 2008 through December 31, 2008 and the years ended December 31, 2009, 2010, 2011, and 2012.


| Shares Weighted Average Exercise Price | Outstanding at December 31, 2011 | Exercised | Forfeited | Expired | Outstanding at December 31, 2012 | Exercised | Forfeited | Expired | Outstanding at December 31, 2013 | Exercised | Expired | Outstanding at December 31, 2014 | Vested and expected to vest at December 31, 2014 | Exercisable at December 31, 2014 |


| Amounts Due By Period | (dollars in millions) | Long-term Debt (including Interest) | Operating Leases | Purchase Obligations | Total |


| March 31, | 2015 | (in $000’s) | Employee compensation | Research and development | Sales and income taxes | Warranty | Professional, legal and accounting fees | Other | $21,894 |


| Years Ended December 31, | (Dollars in millions) | 2015 | Attritional | Catastrophes | Total segment | 2014 | Attritional | Catastrophes | Total segment | 2013 | Attritional | Catastrophes | Total segment | Variance 2015/2014 | Attritional | Catastrophes | Total segment | Variance 2014/2013 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) |


| (in 000s, except per share amounts) | Fiscal Year 2010 | Revenues | Income (loss) from continuing operations before taxes (benefit) | Income taxes (benefit) | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) | Basic earnings (loss) per share: | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) | Diluted earnings (loss) per share: | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) | Fiscal Year 2009 | Revenues | Income (loss) from continuing operations before taxes (benefit) | Income taxes (benefit) | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) | Basic earnings (loss) per share: | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) | Diluted earnings (loss) per share: | Net income (loss) from continuing operations | Net loss from discontinued operations | Net income (loss) |


| Beginning of year 405 | Revisions of previous estimates | Improved recovery | Purchases of reserves in place | Extensions, discoveries, and other additions | Transfer to Proved Developed | End of year |


| December 31, (in millions) 2008 2007 | Total Tier 1capital(a) | Total Tier 2 capital | Total capital | Risk-weighted assets | Total adjusted average assets |


Item 6.
SELECTED FINANCIAL DATA The following table sets forth selected historical financial data of PCA (dollars in thousands, except per share data).
The information contained in the table should be read in conjunction with the disclosures in Part II, Item 7.
Managements Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 8.
Financial Statements and Supplementary Data of this Form 10-K.


| Project Costs Year ended December 31, Increase | (In millions) | ARCALYST® | VEGF Trap-Eye | Aflibercept | REGN88 | Other antibody candidates in clinical development | Other research programs & unallocated costs | Total research and development expenses |


comprised of the S&P 500 Index, the MSCI EAFE Index and MSCI EM Index.
Both options offer two crediting durations, one-year and two-year.
The policyholder may allocate all or a portion of the policy value to a fixed or any available indexed account.
The Company also offers term life insurance as well as disability products.
The Company no longer offers standalone LTC products and whole life insurance but has in force policies from prior years.
Insurance liabilities include accumulation values, incurred but not reported claims, obligations for anticipated future claims, unpaid reported claims and claim adjustment expenses.
The balance of insurance liabilities related to unpaid reported claims and claim adjustment expenses for auto and home was $640 million and $518 million as of December 31, 2015 and 2014, respectively.
The balance of insurance liabilities related to unpaid reported claims and claim adjustment expenses for life, DI and LTC policies was $1.1 billion and $1.0 billion as of December 31, 2015 and 2014, respectively.
The change in the liability for prior year incurred unpaid reported claims and claim adjustment expenses related to auto and home, life, DI and LTC policies was a decrease of $2 million, an increase of $9 million and an increase of $2 million for the years 2015, 2014 and 2013, respectively.  ?
In 2015, there was a $60 million decrease primarily reflecting favorable closed claim trends of DI and LTC policies and from an update to assumptions related to life rider benefits partially offset by an increase of $58 million related to elevated frequency and severity experience for auto injury claims for 2014 and prior accident years as well as a more gradual than anticipated improvement of 2014 and prior years existing claims and unfavorable prior year catastrophe reserve development associated with 2014 hail storms.  ?
In 2014, there was a $42 million decrease related to favorable closed claim trends primarily related to DI and LTC policies more than offset by a $54 million increase primarily reflecting adverse development in the 2013 and prior accident years auto liability coverage.  ?
In 2013, there was a $38 million decrease related to favorable closed claim trends primarily related to DI and LTC policies more than offset by a $42 million increase reflecting the unfavorable prior year reserve development for 2009 through 2012 auto liability claims and prior year catastrophe reserve development related to Superstorm Sandy.
Portions of the Companys fixed and variable universal life policies have product features that result in profits followed by losses from the insurance component of the policy.
These profits followed by losses can be generated by the cost structure of the product or secondary guarantees in the policy.
The secondary guarantee ensures that, subject to specified conditions, the policy will not terminate and will continue to provide a death benefit even if there is insufficient policy value to cover the monthly deductions and charges.
Threadneedle Investment Liabilities Threadneedle provides a range of unitized pooled pension funds, which invest in property, stocks, bonds and cash.
The investments are selected by the clients and are based on the level of risk they are willing to assume.
All investment performance, net of fees, is passed through to the investors.
The value of the liabilities represents the fair value of the pooled pension funds.
Separate Account Liabilities Separate account liabilities consisted of the following:


Competitive Strengths We have established ourselves as a global leader and innovator in our industry.
We believe we are well positioned to further enhance our leadership position through several key competitive strengths: ?
Innovative Products and Services.
We are structured and committed to deliver a differentiated experience to our customers, through our offering of innovative proprietary products, order types, risk management tools and other products and services.
We have also worked closely and collaboratively with market participants to introduce new products and services to meet the evolving needs of the industry, and we plan to continue these efforts.
Products we have developed include index options, equity options, options and futures on the VIX Index and other volatility indexes, short duration options, including Weeklys, FLexible EXchange Options (‘‘FLEX options’’) and options strategy benchmark indexes.
We have also developed products that enable our customers to monitor their order handling on our markets in real-time, such as our user dashboard and latency reports.
We were the first U. S.  options exchange to trade options during non-U.
S.  trading hours, offering extended trading hours in our exclusive proprietary products.
We also connect with a growing customer base through trading and educational resources, including resources available through our website, the world-renowned Cboe Options Institute, participating at industry trade shows and industry forums.  ?
Leading Proprietary Technology.
Bats’ leading proprietary technology was designed in-house to optimize reliability, speed, scalability and versatility.
The trading technology platforms have experienced very low operational downtime and have low latency.
We believe that this reliability, capacity and speed gives our customers an additional incentive to use our platforms to mitigate trade execution risk, especially in times of extreme market volatility.
We plan to utilize Bats’ leading proprietary trading technology by migrating trading on Cboe Options, C2 and CFE onto a single platform, which is expected to enhance reliability, speed, efficiency, versatility, resiliency and scalability and result in uniformity of customer experience across all of our markets.
Item 6.
Selected Financial Data The following selected financial and operating data should be read in conjunction with ‘‘Management’s Discussion and Analysis of Financial Condition and Results of Operations’’ and our consolidated financial statements and the accompanying notes included in Items 7 and 8, respectively of this Form 10-K.


| Securities with unrealized losses | Less than 12 months | Gross | Fair | 2004 (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 politicalsubdivisions | Debt securities issued by non-U.S.governments | Corporate debt securities | Equity securities | Other, primarily asset-backed securities | Total securities with unrealized losses |


| December 31 | (Dollars in millions) | Deposits | Global Card Services | Home Loans & Insurance | Global Commercial Banking | Global Banking & Markets | Global Wealth & Investment Management | All Other | Total goodwill |


| (in millions of U.S. dollars) 2009 Net Premiums Earned % of Total 2008 Net Premiums Earned % of Total 2007 Net Premiums Earned | Insurance – North American | Insurance – Overseas General | Global Reinsurance | Life | $13,240 | Total | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total |


ITEM 5 | Market for Registrant?s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 AIG | 2017 Form 10-K As of December 31, 2017, approximately $2.3 billion remained under our share repurchase authorization.
We did not repurchase any shares of AIG Common Stock from January 1, 2018 to February 8, 2018.
Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants).
Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.
The timing of any future share repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.
For additional information on our share purchases see Note 17 to the Consolidated Financial Statements.
Common Stock Performance Graph The following Performance Graph compares the cumulative total shareholder return on AIG Common Stock for a five-year period (December 31, 2012 to December 31, 2017) with the cumulative total return of the S&P?s 500 stock index (which includes AIG), the S&P Property and Casualty Insurance Index (S&P P&C Index) and the S&P Life and Health Insurance Index (S&P L&H Index).
Value of $100 Invested on December 31, 2012 (All $ as of December 31st)


| December 31, | In millions | Komatsu alliances | Beijing Foton Cummins Engine Co., Ltd. | Dongfeng Cummins Engine Company, Ltd. | Chongqing Cummins Engine Company, Ltd. | Cummins-Scania XPI Manufacturing, LLC | Tata Cummins, Ltd. | North American distributors-1 | Other | Investments and advances related to equity method investees |


| Other PostretirementBenefits (in millions) | One percentage point increase | Increase in total service and interest costs | Increase in postretirement benefit obligation | One percentage point decrease | Decrease in total service and interest costs | Decrease in postretirement benefit obligation |


| Unvested stock awards Shares Weighted-average grant date fair value | Unvested at January 1, 2009 | New awards | Cancelled awards | Deleted awards | Vested awards-1 | Unvested at December 31, 2009 |


Printing Papers Demand for Printing Papers products is closely correlated with changes in commercial printing and advertising activity, direct mail volumes and, for uncoated cut-size products, with changes in whitecollar employment levels that affect the usage of copy and laser printer paper.
Pulp is further affected by changes in currency rates that can enhance or disadvantage producers in different geographic regions.
Principal cost drivers include manufacturing efficiency, raw material and energy costs and freight costs.
Printing Papers net sales for 2012 were about flat with 2011 and increased 5% from 2010.
Operating profits in 2012 were 31% lower than in 2011, but 25% higher than in 2010.
Excluding facility closure costs and impairment costs, operating profits in 2012 were 30% lower than in 2011 and 25% lower than in 2010.
Benefits from higher sales volumes ($58 million) were more than offset by lower sales price realizations and an unfavorable product mix ($233 million), higher operating costs ($30 million), higher maintenance outage costs ($17 million), higher input costs ($32 million) and other items ($6 million).
In addition, operating profits in 2011 included a $24 million gain related to the announced repurposing of our Franklin, Virginia mill to produce fluff pulp and an $11 million impairment charge related to our Inverurie, Scotland mill that was closed in 2009.


Other-Than-Temporary Impairments of Fixed Maturity Securities We maintain separate monitoring processes for public and private fixed maturities and create watch lists to highlight securities that require special scrutiny and management.
Our public fixed maturity asset managers formally review all public fixed maturity holdings on a quarterly basis and more frequently when necessary to identify potential credit deterioration whether due to ratings downgrades, unexpected price variances, and/or company or industry specific concerns.
For private placements our credit and portfolio management processes help ensure prudent controls over valuation and management.
We have separate pricing and authorization processes to establish checks and balances for new investments.
We apply consistent standards of credit analysis and due diligence for all transactions, whether they originate through our own in-house origination staff or through agents.
Our regional offices closely monitor the portfolios in their regions.
We set all valuation standards centrally, and we assess the fair value of all investments quarterly.
Our private fixed maturity asset managers formally review all private fixed maturity holdings on a quarterly basis and more frequently when necessary to identify potential credit deterioration whether due to ratings downgrades, unexpected price variances, and/or company or industry specific concerns.
Fixed maturity securities classified as held to maturity are those securities where we have the intent and ability to hold the securities until maturity.
These securities are reflected at amortized cost in our consolidated statements of financial position.
Other fixed maturity


Xcel Energy’s ongoing investment strategy is based on plan-specific investment recommendations that seek to minimize potential investment and interest rate risk as a plan’s funded status increases over time.
The investment recommendations result in a greater percentage of long-duration fixed income securities being allocated to specific plans having relatively higher funded status ratios and a greater percentage of growth assets being allocated to plans having relatively lower funded status ratios.
The aggregate projected asset allocation presented in the table above for the master pension trust results from the plan-specific strategies.
SPP and MISO Complaints Regarding RTO Joint Operating Agreement (JOA) — SPP and MISO have been engaged in a longstanding dispute regarding the interpretation of their JOA, which is intended to coordinate RTO operations along the MISO/SPP system boundary.
SPP and MISO disagree over MISO’s authority to transmit power between the traditional MISO region in the Midwest and the Entergy system.
Several cases were filed with the FERC by MISO and SPP between 2011 and 2014.
In June 2014, the FERC set the issues for settlement judge and hearing procedures.
In January 2016, FERC approved a settlement between SPP, MISO and other parties that resolves various disputed matters and provide a defined settlement compensation plan by MISO to SPP.
MISO will pay SPP $16 million for the two-year retroactive period and $16 million annually prospectively, subject to a true-up.
Separate settlement discussions regarding the MISO tariff change to recover SPP charges are ongoing.
NSP-Minnesota and NSP-Wisconsin expect to be able to recover any resulting MISO charges in retail rates.
In January 2016, SPP filed a proposal regarding distribution of the revenues to SPP members, including SPS.
FERC approval is pending.
The revenue allocated to SPS is not expected to be material.
Electric Operating Statistics Electric Sales Statistics


| Year Total | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total |


| December 31, | 2015 | (In millions) | Assets: | Deferred tax asset | Deferred charges and other | Liabilities | Other current liabilities | Deferred income taxes | Net deferred income tax liability |


| September 30, 2007 September 30, 2006 September 30, 2005 September 24, 2004 September 26, 2003 | ($ in 000’s) | Nonaccrual Loans | Accruing Loans Which are 90 Days | Past Due | Total Nonperforming Loans | Real Estate Owned and Other | Repossessed Assets, Net | Total Nonperforming Assets, Net | Total Nonperforming Loans as a | Percentage of | Total Loans, Net |


| December 31, 2009 December 31, 2008 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Commercial mortgage loans by region: | U.S. Regions: | Pacific | South Atlantic | Middle Atlantic | East North Central | West South Central | Mountain | New England | West North Central | East South Central | Subtotal—U.S. | Asia | Other | Total commercial mortgage loans | December 31, 2009 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Commercial mortgage loans by property type: | Industrial buildings | Retail stores | Office buildings | Apartment Complexes | Other | Hospitality | Agricultural properties | Total commercial mortgage loans |


| December 31, 2011 December 31, 2010 | Fixed maturities, AFS | Short-term investments | Total collateral pledged |


| ($ in millions) 2009 2008 2007 | Fixed income securities | Equity securities | Short-term investments | Derivative instruments | Total | Amounts recognized for: | Insurance reserves | DAC and DSI | (Decrease) increase in amounts recognized | Deferred income taxes | Increase (decrease) in unrealized net capital gains and losses |


| (Dollars in millions) 2006 2005 2004 | Case reserves reported by ceding companies | Additional case reserves established by the Company (assumed reinsurance) (1) | Case reserves established by the Company (direct insurance) | Incurred but not reported reserves | Gross reserves | Reinsurance receivable | Net reserves |


| 2017 2016 2015 | Cash and cash equivalents at beginning of year | Operating activities | Net earnings | Non-cash adjustments | Changes in working capital | Other, net | Net cash provided by operating activities | Net cash used for investing activities | Net cash (used for) provided by financing activities | Net change in cash and cash equivalents | Cash and cash equivalents at end of year |


(1) Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St.  Regis, and EDITION.
(2) Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, Gaylord Hotels, Le Méridien, and Tribute Portfolio.
(3) Includes Composite North American Luxury and Composite North American Upper Upscale.
(4) Includes Courtyard, Residence Inn, Fairfield Inn & Suites, SpringHill Suites, Four Points, TownePlace Suites, and AC Hotels by Marriott.
Systemwide also includes Aloft and Element.
(5) Includes North American Full-Service and Composite North American Limited-Service
The $449 million increase in franchise fees primarily reflected $346 million of higher Legacy-Starwood fees, $54 million from Legacy-Marriott unit growth, $18 million from Legacy-Marriott RevPAR growth, $14 million of higher Legacy-Marriott branding fees, $11 million of higher Legacy-Marriott relicensing fees, and $7 million of higher fees from Legacy-Marriott properties that converted from managed to franchised.
The $182 million increase in incentive management fees primarily reflected $159 million of higher Legacy-Starwood fees and $22 million from higher net house profits at Legacy-Marriott managed hotels.
In 2017, we earned incentive management fees from 71 percent of our managed properties.
In North America, we earned incentive management fees from 60 percent of our managed properties.
Outside North America, we earned incentive management fees from 80 percent of our managed properties, representing 62 percent of our total incentive management fees in 2017 from managed properties.


| Twelve Months Ended December 31, | 2018 | (In millions) | Weighted-average shares outstanding (basic) | Effect of dilutive securities: | Stock options and restricted stock units | Weighted-average shares outstanding (diluted) |


(i) Includes depreciation and amortization related to discontinued operations of $0.9 million and $1.3 million for the years ended December 31, 2013 and 2012, respectively.
(ii) Includes interest expense related to discontinued operations of $3.3 million and $1.6 million for the years ended December 31, 2013 and 2012, respectively.
(iii) Includes provision for income taxes related to discontinued operations of $1.3 million and $1.0 million for the years ended December 31, 2013 and 2012, respectively.
(iv) Includes EBITDA related to discontinued operations of $7.9 million and $5.6 million for the years ended December 31, 2013 and 2012, respectively.
(4) In the third quarter of 2015, we elected to early adopt the provisions of Accounting Standards Update (ASU) 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.
” This ASU required that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability instead of separately being recorded in other assets.
As of December 31, 2014, deferred financing costs totaling $25.6 million were reclassified from other assets and netted against the related debt liabilities to conform with the 2015 presentation.
See Deferred Financing Costs discussion within Note 2 of our Notes to Consolidated Financial Statements set forth in Item 8 of this Annual Report.
Amounts for 2012 and 2013 have not been reclassified to conform with the presentation in 2014, 2015 and 2016.
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Investments – (Continued) surrounding sub-prime residential mortgage concerns.
In some instances, an OTTI loss was recorded because, in the Impairment Committee’s judgment, recovery to cost is not likely.
The majority of the OTTI losses recorded in 2007 were due to CNA’s lack of intent to hold until an anticipated recovery of cost or maturity.
For 2007, 9.0% of the OTTI losses were taken on common and preferred stocks and 41.0% were taken on below investment grade securities.
Further information on CNA’s OTTI process is set forth in Note 2 of the Consolidated Financial Statements included under Item 8.
Net realized investment results increased by $70 million for 2006 compared with 2005.
The increase in net realized investment results was primarily driven by improved results in fixed maturity securities, partially offset by increases in interest rate related OTTI losses for which CNA did not assert an intent to hold until an anticipated recovery in value.
OTTI losses of $101 million were recorded in 2006 primarily in the corporate and other taxable bonds sector.
Other realized investment gains for the year ended December 31, 2006, included a $37 million pretax gain related to a settlement received as a result of bankruptcy litigation of a major telecommunications corporation.
OTTI losses of $64 million were recorded in 2005 across various sectors, including an OTTI loss of $20 million related to loans made under a credit facility to a national contractor, that were classified as fixed maturities.
For additional information on loans to the national contractor, see Note 22 of the Notes to Consolidated Financial Statements.
A primary objective in the management of the fixed maturity and equity portfolios is to optimize return relative to underlying liabilities and respective liquidity needs.
CNA’s views on the current interest rate environment, tax regulations, asset class valuations, specific security issuer and broader industry segment conditions, and the domestic and global economic conditions, are some of the factors that enter into an investment decision.
CNA also continually monitors exposure to issuers of securities held and broader industry sector exposures and may from time to time adjust such exposures based on its views of a specific issuer or industry sector.
A further consideration in the management of the investment portfolio is the characteristics of the underlying liabilities and the ability to align the duration of the portfolio to those liabilities to meet future liquidity needs, minimize interest rate risk and maintain a level of income sufficient to support the underlying insurance liabilities.
For portfolios where future liability cash flows are determinable and long term in nature, CNA segregates investments for asset/liability management purposes.
The segregated investments support liabilities primarily in the Life & Group Non-Core segment including annuities, structured benefit settlements and long term care products.
The remaining investments are managed to support the Standard Lines, Specialty Lines and Other Insurance segments.
The effective durations of fixed maturity securities, short term investments and interest rate derivatives are presented in the table below.
Short term investments are net of securities lending collateral and accounts payable and receivable amounts for securities purchased and sold, but not yet settled.
The segregated investments had an effective duration of 10.7 years and 9.8 years at December 31, 2007 and 2006.
The remaining interest sensitive investments had an effective duration of 3.3 years and 3.2 years at December 31, 2007 and 2006.
The overall effective duration was 5.1 years and 4.7 years at December 31, 2007 and 2006.
Effective Durations


| Period Total Number of Shares Purchased  -1 Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Approximate Dollar Value of Shares that May Yet Be Purchased under the Plans or Programs  (Millions) | January 1-31, 2007 | February 1-28, 2007 | March 1-31, 2007 | Total January 1 — March 31, 2007 | April 1-30, 2007 | May 1-31, 2007 | June 1-30, 2007 | Total April 1 — June 30, 2007 | July 1-31, 2007 | August 1-31, 2007 | September 1-30, 2007 | Total July 1 — September 30, 2007 | October 1-31, 2007 | November 1-30, 2007 | December 1-31, 2007 | Total October 1 — Dec. 31, 2007 | Total January 1 — December 31, 2007 |


| FES 2013 2012 2011 | (In millions) | Revenues: | Electric sales to affiliates | Other | Expenses: | Purchased power from affiliates | Fuel | Support services | Investment Income: | Interest income from FE | Interest Expense: | Interest expense to affiliates | Interest expense to FE |