MANAGEMENT’S DISCUSSION AND ANALYSISOF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Indemnification Provisions:In addition, the Company may provide indemnifications for losses that resultfrom the breach of general warranties contained in certain commercial, intellectual property and divestitureagreements.
Historically, the Company has not made significant payments under these agreements, nor have therebeen significant claims asserted against the Company.
However, there is an increasing risk in relation tointellectual property indemnities given the current legal climate.
In indemnification cases, payment by theCompany is conditioned on the other party making a claim pursuant to the procedures specified in the particularcontract, which procedures typically allow the Company to challenge the other party’s claims.
Further, theCompany’s obligations under these agreements for indemnification based on breach of representations andwarranties are generally limited in terms of duration, typically not more than 24 months, and for amounts not inexcess of the contract value, and in some instances the Company may have recourse against third parties forcertain payments made by the Company.
Legal Matters:The Company is a defendant in various lawsuits, claims and actions, which arise in thenormal course of business.
In the opinion of management, the ultimate disposition of these matters will not havea material adverse effect on the Company’s consolidated financial position, liquidity or results of operations.
Segment InformationThe following commentary should be read in conjunction with the financial results of each operatingbusiness segment as detailed in Note 12, ‘‘Information by Segment and Geographic Region,’’ to the Company’sconsolidated financial statements.
Net sales and operating results for the Company’s three operating businesssegments for 2009, 2008 and 2007 are presented below.
Mobile Devices SegmentThe Mobile Devices segment designs, manufactures, sells and services wireless handsets,includingsmartphones, with integrated software and accessory products, and licenses intellectual property.
In 2009, thesegment’s net sales represented 32% of the Company’s consolidated net sales, compared to 40% in 2008 and52% in 2007.
## Table 0 ##
Segment Results—2009 Compared to 2008In 2009, the segment’s net sales were $7.1 billion, a decrease of 41% compared to net sales of $12.1 billionin 2008.
The 41% decrease in net sales was primarily driven by a 45% decrease in unit shipments, partially offsetby an 8% increase in average selling price (‘‘ASP’’).
The segment’s net sales were negatively impacted by reducedproduct offerings in large market segments, particularly 3G products, including smartphones, and the segment’slimited product offerings in very low-tier products.
On a product technology basis, net sales decreasedsubstantially for GSM, CDMA and 3G technologies, partially offset by an increase in net sales for iDENtechnology.
On a geographic basis, net sales decreased substantially in Latin America, the Europe, Middle Eastand African region (‘‘EMEA’’) and Asia and, to a lesser extent, decreased in North America.
The segment incurred an operating loss of $1.1 billion in 2009, an improvement of 51% compared to anoperating loss of $2.2 billion in 2008.
The decrease in the operating loss was primarily due to decreases in:(i) selling, general and administrative (‘‘SG&A’’) expenses, primarily due to lower marketing expenses and savingsfrom cost-reduction initiatives, (ii) research and development (‘‘R&D’’) expenditures, reflecting savings fromcost-reduction initiatives,(iii) lower excess inventory and other related charges in 2009 than in 2008, when thecharges included a $370 million charge due to a decision to consolidate software and silicon platforms, and(iv) the absence in 2009 of a comparable $150 million charge in 2008 related to settlement of a purchasecommitment, partially offset by a decrease in gross margin, driven by the 41% decrease in net sales.
As apercentage of net sales in 2009 as compared to 2008, gross margin and R&D expenditures increased and SG&Aexpenses decreased.
The segment’s industry typically experiences short life cycles for new products.
Therefore, it is vital to thesegment’s success that new, compelling products are continually introduced.
Accordingly, a strong commitment to
and options.
Gains or losses on these derivatives are included in Corporate services noninterest income.
The residential and commercial mortgage loan commitments associated with loans to be sold which are accounted for as derivatives are valued based on the estimated fair value of the underlying loan and the probability that the loan will fund within the terms of the commitment.
The fair value also takes into account the fair value of the embedded servicing right.
We offer derivatives to our customers in connection with their risk management needs.
These derivatives primarily consist of interest rate swaps, interest rate caps and floors, swaptions and foreign exchange contracts.
We primarily manage our market risk exposure from customer transactions by entering into a variety of hedging transactions with third-party dealers.
Gains and losses on customer-related derivatives are included in Other noninterest income.
Included in the customer, mortgage banking risk management, and other risk management portfolios are written interest-rate caps and floors entered into with customers and for risk management purposes.
We receive an upfront premium from the counterparty and are obligated to make payments to the counterparty if the underlying market interest rate rises above or falls below a certain level designated in the contract.
Our ultimate obligation under written options is based on future market conditions.
We have entered into risk participation agreements to share some of the credit exposure with other counterparties related to interest rate derivative contracts or to take on credit exposure to generate revenue.
The notional amount of risk participation agreements sold was $4.3 billion at December 31, 2016 and $2.5 billion at December 31, 2015.
Assuming all underlying third party customers referenced in the swap contracts defaulted, the exposure from these agreements would be $.1 billion at both December 31, 2016 and December 31, 2015 based on the fair value of the underlying swaps.
Further detail regarding the gains (losses) on derivatives not designated in hedging relationships is presented in the following table: Table 82: Gains (Losses) on Derivatives Not Designated for Hedging under GAAP
## Table 1 ##
(a) Included in Residential mortgage, Corporate services and Other noninterest income.
(b) Included in Other noninterest income.
(c) Includes BlackRock LTIP funding obligation and the swaps entered into in connection with sales of a portion of Visa Class B common shares.
Offsetting, Counterparty Credit Risk, and Contingent Features We, generally, utilize a net presentation on the Consolidated Balance Sheet for those derivative financial instruments entered into with counterparties under legally enforceable master netting agreements.
The master netting agreements reduce credit risk by permitting the closeout netting of all outstanding derivative instruments under the master netting agreement with the same counterparty upon the occurrence of an event of default.
The master netting agreement also may require the exchange of cash or marketable securities to collateralize either party’s net position.
In certain cases, minimum thresholds must be exceeded before any collateral is exchanged.
Collateral is typically exchanged daily based on the net fair value of the positions with the counterparty as of the preceding day.
Collateral representing initial margin, which is based on potential future exposure, is also required to be pledged by us in relation to derivative instruments with central clearing house counterparties.
Any cash collateral exchanged with counterparties under these master netting agreements is also netted, when appropriate, against the applicable derivative fair values on the Consolidated Balance Sheet.
However, the fair value of any securities held or pledged is not included in the net presentation on the balance sheet.
In order for derivative instruments under a master netting agreement to be eligible for closeout netting under
RECONCILIATION OF FEE INCOME (NON-GAAP)
## Table 2 ##
NONPERFORMING ASSETS AND RELATED INFORMATION
## Table 3 ##
(a) Excludes most consumer loans and lines of credit, not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.
(b) Pursuant to alignment with interagency supervisory guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, nonperforming home equity loans increased $214 million, nonperforming residential mortgage loans increased $187 million and nonperforming other consumer loans increased $25 million.
Charge-offs were taken on these loans where the fair value less costs to sell the collateral was less than the recorded investment of the loan and were $134 million.
(c) Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.
(d) Past due loan amounts include government insured or guaranteed consumer loans of $.7 billion, $.8 billion, $1.0 billion, $1.0 billion and $2.2 billion at December 31, 2016, 2015, 2014, 2013 and 2012, respectively.

<table><tr><td></td><td>Years Ended December 31</td><td>Percent Change</td></tr><tr><td>(Dollars in millions)</td><td>2009</td><td>2008</td><td>2007</td><td>2009—2008</td><td>2008—2007</td></tr><tr><td>Segment net sales</td><td>$7,146</td><td>$12,099</td><td>$18,988</td><td>-41%</td><td>-36%</td></tr><tr><td>Operating earnings (loss)</td><td>-1,077</td><td>-2,199</td><td>-1,201</td><td>-51%</td><td>83%</td></tr></table>
<table><tr><td></td><td colspan="3">Yearended December 31</td></tr><tr><td>In millions</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Derivatives used for mortgage banking activities:</td><td></td><td></td><td></td></tr><tr><td>Interest rate contracts (a)</td><td>$152</td><td>$220</td><td>$318</td></tr><tr><td>Derivatives used for customer-related activities:</td><td></td><td></td><td></td></tr><tr><td>Interest rate contracts</td><td>$78</td><td>$71</td><td>$41</td></tr><tr><td>Foreign exchange contracts and other</td><td>84</td><td>78</td><td>46</td></tr><tr><td>Gains (losses) from customer-related activities (b)</td><td>$162</td><td>$149</td><td>$87</td></tr><tr><td>Derivatives used for other risk management activities:</td><td></td><td></td><td></td></tr><tr><td>Interest rate contracts</td><td></td><td></td><td>$-19</td></tr><tr><td>Foreign exchange contracts and other (c)</td><td>$-7</td><td>$282</td><td>54</td></tr><tr><td>Gains (losses) from other risk management activities (b)</td><td>$-7</td><td>$282</td><td>$35</td></tr><tr><td>Total gains (losses) from derivatives not designated as hedginginstruments</td><td>$307</td><td>$651</td><td>$440</td></tr></table>
<table><tr><td>Year ended December 31Dollars in millions</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Noninterest income</td><td></td><td></td><td></td></tr><tr><td>Asset management</td><td>$1,521</td><td>$1,567</td><td>$1,513</td></tr><tr><td>Consumer services</td><td>1,388</td><td>1,335</td><td>1,254</td></tr><tr><td>Corporate services</td><td>1,504</td><td>1,491</td><td>1,415</td></tr><tr><td>Residential mortgage</td><td>567</td><td>566</td><td>618</td></tr><tr><td>Service charges on deposits</td><td>667</td><td>651</td><td>662</td></tr><tr><td>Total fee income</td><td>5,647</td><td>5,610</td><td>5,462</td></tr><tr><td>Other</td><td>1,124</td><td>1,337</td><td>1,388</td></tr><tr><td>Total noninterest income</td><td>$6,771</td><td>$6,947</td><td>$6,850</td></tr></table>
<table><tr><td>December 31 – dollars in millions</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Nonperforming loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$496</td><td>$351</td><td>$290</td><td>$457</td><td>$590</td></tr><tr><td>Commercial real estate</td><td>143</td><td>187</td><td>334</td><td>518</td><td>807</td></tr><tr><td>Equipment lease financing</td><td>16</td><td>7</td><td>2</td><td>5</td><td>13</td></tr><tr><td>Total commercial lending</td><td>655</td><td>545</td><td>626</td><td>980</td><td>1,410</td></tr><tr><td>Consumer lending (a)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Home equity (b)</td><td>914</td><td>977</td><td>1,112</td><td>1,139</td><td>951</td></tr><tr><td>Residential real estate (b)</td><td>501</td><td>549</td><td>706</td><td>904</td><td>845</td></tr><tr><td>Credit card</td><td>4</td><td>3</td><td>3</td><td>4</td><td>5</td></tr><tr><td>Other consumer (b)</td><td>70</td><td>52</td><td>63</td><td>61</td><td>43</td></tr><tr><td>Total consumer lending</td><td>1,489</td><td>1,581</td><td>1,884</td><td>2,108</td><td>1,844</td></tr><tr><td>Total nonperforming loans (c)</td><td>2,144</td><td>2,126</td><td>2,510</td><td>3,088</td><td>3,254</td></tr><tr><td>OREO, foreclosed and other assets</td><td>230</td><td>299</td><td>370</td><td>369</td><td>540</td></tr><tr><td>Total nonperforming assets</td><td>$2,374</td><td>$2,425</td><td>$2,880</td><td>$3,457</td><td>$3,794</td></tr><tr><td>Nonperforming loans to total loans</td><td>1.02%</td><td>1.03%</td><td>1.23%</td><td>1.58%</td><td>1.75%</td></tr><tr><td>Nonperforming assets to total loans, OREO, foreclosed and other assets</td><td>1.12%</td><td>1.17%</td><td>1.40%</td><td>1.76%</td><td>2.04%</td></tr><tr><td>Nonperforming assets to total assets</td><td>.65%</td><td>.68%</td><td>.83%</td><td>1.08%</td><td>1.24%</td></tr><tr><td>Interest on nonperforming loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Computed on original terms</td><td>$111</td><td>$115</td><td>$125</td><td>$163</td><td>$212</td></tr><tr><td>Recognized prior to nonperforming status</td><td>$21</td><td>$22</td><td>$25</td><td>$30</td><td>$30</td></tr><tr><td>Troubled Debt Restructurings</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Nonperforming</td><td>$1,112</td><td>$1,119</td><td>$1,370</td><td>$1,511</td><td>$1,589</td></tr><tr><td>Performing</td><td>$1,109</td><td>$1,232</td><td>$1,213</td><td>$1,228</td><td>$1,270</td></tr><tr><td>Past due loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Accruing loans past due 90 days or more (d)</td><td>$782</td><td>$881</td><td>$1,105</td><td>$1,491</td><td>$2,351</td></tr><tr><td>As a percentage of total loans</td><td>.37%</td><td>.43%</td><td>.54%</td><td>.76%</td><td>1.26%</td></tr><tr><td>Past due loans held for sale</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Accruing loans held for sale past due 90 days or more</td><td>$4</td><td>$4</td><td>$9</td><td>$4</td><td>$38</td></tr><tr><td>As a percentage of total loans held for sale</td><td>.16%</td><td>.29%</td><td>.40%</td><td>.18%</td><td>1.03%</td></tr></table>

Question: In the year with the most Home equity (b), what is the growth rate of Residential real estate (b)? (in %)
Answer: 0.06982