HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations (Continued) Corporate Investments
## Table 0 ##
Fiscal 2019 compared with Fiscal 2018 Corporate Investments net revenue decreased by $36 million, or 6.6% (decreased 4.4% on a constant currency bases), in fiscal 2019 as compared to fiscal 2018.
The decrease in Corporate Investments net revenue was due to lower services revenue from the Communications and Media Solutions (‘‘CMS’’) business and unfavorable currency fluctuations.
Corporate Investments loss from operations as a percentage of net revenue increased 4.5 percentage points in fiscal 2019 as compared to fiscal 2018, due primarily to higher R&D expenses from Hewlett Packard Labs and a legal settlement expense in the CMS business, partially offset by a higher gross margin from the CMS business.
Fiscal 2018 compared with Fiscal 2017 Corporate Investments net revenue decreased by $10 million, or 1.8% (decreased 4.0% on a constant currency bases), in fiscal 2018 as compared to fiscal 2017.
The decrease in Corporate Investments net revenue, was due to lower services revenue from the CMS business.
Corporate Investments loss from operations as a percentage of net revenue increased 0.3 percentage points in fiscal 2018 as compared to fiscal 2017, due primarily to the net revenue decline and a lower gross margin partially offset by lower R&D expenses from Hewlett Packard Labs, lower field selling costs and administrative expense from the CMS business.
We use cash generated by operations as our primary source of liquidity.
We believe that internally generated cash flows will be generally sufficient to support our operating businesses, capital expenditures, product development initiatives, acquisition and disposal activities including legal settlements, restructuring activities, transformation costs, indemnifications, maturing debt, interest payments, income tax payments, in addition to any future investments and any future share repurchases, and future stockholder dividend payments.
We expect to supplement this short-term liquidity, if necessary, by accessing the capital markets, issuing commercial paper, and borrowing under credit facilities made available by various domestic and foreign financial institutions.
However, our access to capital markets may be constrained and our cost of borrowing may increase under certain business, market and economic conditions.
Our liquidity is subject to various risks including the risks identified in the section entitled ‘‘Risk Factors’’ in Item 1A and market risks identified in the section entitled ‘‘Quantitative and Qualitative Disclosures about Market Risk’’ in Item 7A, each of which is incorporated herein by reference.
Our cash balances are held in numerous locations throughout the world, with a substantial amount held outside of the U. S.  We utilize a variety of planning and financing strategies in an effort to ensure that our worldwide cash is available when and where it is needed.
Our cash position is strong and we expect that our cash balances, anticipated cash flow generated from operations and access to capital markets will be sufficient to cover our expected near-term cash outlays.
CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS – A summary of our borrowings and known or estimated contractual obligations as of April 30, 2018, and the timing and effect that such commitments are expected to have on our liquidity and capital requirements in future periods is as follows:
## Table 1 ##
The table above does not reflect unrecognized tax benefits of approximately $186 million due to the high degree of uncertainty regarding the future cash flows associated with these amounts.
In connection with our agreement with BofI, we are required to purchase a 90% participation interest, at par, in all EAs originated by our lending partner.
During fiscal year 2018, we decided to permanently close approximately 400 tax offices after this year's tax season and, as a result, wrote off $7.4 million in related leasehold improvements, furniture and signage.
In conjunction with these office closures, we expect to incur $15 million to $20 million of expense in fiscal year 2019 as we exit the related operating leases.
See discussion of contractual obligations and commitments in Item 8, within the notes to the consolidated financial statements.
REGULATORY ENVIRONMENT – The federal government, various state, local, provincial and foreign governments, and some self-regulatory organizations have enacted statutes and ordinances, or adopted rules and regulations, regulating aspects of our business.
These aspects include, but are not limited to, commercial income tax return preparers, income tax courses, the electronic filing of income tax returns, the offering of RTs, privacy, consumer protection, franchising, sales methods and banking.
We determine the applicability of such statutes, ordinances, rules and regulations (collectively, Laws) and work to comply with those Laws that are applicable to us or our services or products.
On November 17, 2017, the CFPB officially published the Payday Rule.
Certain limited provisions of the Payday Rule became effective on January 16, 2018, but most provisions do not become effective until August 19, 2019.
However, on January 16, 2018, the CFPB stated its intention to engage in a rulemaking process so that the CFPB may reconsider the Payday Rule, and industry groups have filed lawsuits challenging the rule.
Given these developments, we are unsure whether, and in what form, the Payday Rule will go into effect.
Depending on the outcome of the rulemaking process and litigation, which may include the Payday Rule becoming effective in its current form, the Payday Rule may have a material adverse impact on the EA product, our business, and our consolidated financial position, results of operations, and cash flows.
We will continue to analyze the potential impact on the Company as the CFPB’s rulemaking process progresses.
On October 5, 2016, the CFPB released the Prepaid Card Rule.
The Prepaid Card Rule was scheduled to take effect on April 1, 2018, with certain provisions phased in over time following that date.
However, on January 25, 2018, the CFPB amended the Prepaid Card Rule and extended the general effective date until April 1, 2019.
Once effective, the Prepaid Card Rule will apply to the Emerald Card.
The Prepaid Card Rule, among other things: (i) requires consumer disclosures to be made prior to acquiring a prepaid account; (ii) requires periodic statements or online access to specified account information; and (iii) requires online posting of the Cardholder Agreement and submission of new and revised Cardholder Agreements to the CFPB.
We do not expect that the Prepaid Card Rule will have a material adverse effect on our business or our consolidated financial position, results of operations, and cash flows.
From time to time in the ordinary course of business, we receive inquiries from governmental and self-regulatory agencies regarding the applicability of Laws to our services and products.
In response to past inquiries, we have
Table 70: Credit Card and Other Consumer Loan Classes Asset Quality Indicators
## Table 2 ##
(a) At December 31, 2012, we had $36 million of credit card loans that are higher risk (i. e. , loans with both updated FICO scores less than 660 and in late stage (90+ days) delinquency status).
The majority of the December 31, 2012 balance related to higher risk credit card loans is geographically distributed throughout the following areas: Ohio 18%, Pennsylvania 14%, Michigan 12%, Illinois 8%, Indiana 6%, Florida 6%, New Jersey 5%, Kentucky 4%, and North Carolina 4%.
All other states, none of which comprise more than 3%, make up the remainder of the balance.
At December 31, 2011, we had $49 million of credit card loans that are higher risk.
The majority of the December 31, 2011 balance related to higher risk credit card loans is geographically distributed throughout the following areas: Ohio 20%, Michigan 14%, Pennsylvania 13%, Illinois 7%, Indiana 7%, Florida 6% and Kentucky 5%.
All other states, none of which comprise more than 4%, make up the remainder of the balance.
(b) Other consumer loans for which updated FICO scores are used as an asset quality indicator include nongovernment guaranteed or insured education loans, automobile loans and other secured and unsecured lines and loans.
Other consumer loans (or leases) for which other internal credit metrics are used as an asset quality indicator include primarily government guaranteed or insured education loans, as well as consumer loans to high net worth individuals and pools of auto loans (and leases) financed for PNC clients via securitization facilities.
Other internal credit metrics may include delinquency status, geography, loan to value, asset concentrations, loss coverage multiples, net loss rates or other factors as well as servicer quality reviews associated with the securitizations or other factors.
(c) Credit card loans and other consumer loans with no FICO score available or required refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO (e. g. , recent profile changes), cards issued with a business name, and/or cards secured by collateral.
Management proactively assesses the risk and size of this loan portfolio and, when necessary, takes actions to mitigate the credit risk.
(d) Weighted-average updated FICO score excludes accounts with no FICO score available or required.
DEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Debt maturities as of December 31, 2013, excluding premiums and discounts, are as follows (in millions):
## Table 3 ##
Credit Lines Devon has a $3.0 billion syndicated, unsecured revolving line of credit (the “Senior Credit Facility”) that matures on October 24, 2018.
However, prior to the maturity date, Devon has the option to extend the maturity for up to one additional one-year period, subject to the approval of the lenders.
Amounts borrowed under the Senior Credit Facility may, at the election of Devon, bear interest at various fixed rate options for periods of up to twelve months.
Such rates are generally less than the prime rate.
However, Devon may elect to borrow at the prime rate.
The Senior Credit Facility currently provides for an annual facility fee of $3.8 million that is payable quarterly in arrears.
As of December 31, 2013, there were no borrowings under the Senior Credit Facility.
The Senior Credit Facility contains only one material financial covenant.
This covenant requires Devon’s ratio of total funded debt to total capitalization, as defined in the credit agreement, to be no greater than 65 percent.
The credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the accompanying financial statements.
Also, total capitalization is adjusted to add back noncash financial write-downs such as full cost ceiling impairments or goodwill impairments.
As of December 31, 2013, Devon was in compliance with this covenant with a debt-tocapitalization ratio of 25.7 percent.
Commercial Paper Devon has access to $3.0 billion of short-term credit under its commercial paper program.
Commercial paper debt generally has a maturity of between 1 and 90 days, although it can have a maturity of up to 365 days, and bears interest at rates agreed to at the time of the borrowing.
The interest rate is generally based on a standard index such as the Federal Funds Rate, LIBOR, or the money market rate as found in the commercial paper market.
As of December 31, 2013, Devon’s weighted average borrowing rate on its commercial paper borrowings was 0.30 percent.
Other Debentures and Notes Following are descriptions of the various other debentures and notes outstanding at December 31, 2013, as listed in the table presented at the beginning of this note.
GeoSouthern Debt In December 2013, in conjunction with the planned GeoSouthern acquisition, Devon issued $2.25 billion aggregate principal amount of fixed and floating rate senior notes resulting in cash proceeds of approximately
Results of Operations – Capital Markets The following table presents consolidated financial information for the Capital Markets segment for the years indicated:
## Table 4 ##
Year ended September 30, 2007 Compared with the Year ended September 30, 2006 – Capital Markets The Capital Markets segment pre-tax earnings declined 12% despite a 2% increase in net revenues.
Commission revenue was down slightly, the net of a decline in equity commissions related to the decline in commissions generated by underwriting transactions, and an increase in fixed income commissions, a result of the increased volatility.
Commissions generated by underwriting transactions reached a record $41 million in the prior year and were only $22 million in the current year.
The increase in underwriting fees included increases of $3 million at RJA, despite a decline in the number of deals from 97 to 78, and $3 million at RJ Ltd.  on 30 deals versus 29 in the prior year.
Merger and acquisition fees were up $15 million, reaching an all time record level of $60 million for the year.
During fiscal 2007, RJA closed 15 individual merger and acquisition transactions with fees in excess of $1 million.
Trading profits were down 58% from the prior year, reflecting a particularly difficult fixed income trading environment during the fourth quarter.
As credit issues drove fixed income product values down there was a flight to quality and the firm’s economic hedges (short positions in US Treasuries) contributed additional losses.
Meanwhile, there were also increased losses in equity customer facilitations and OTC market making.
Raymond James Tax Credit Fund (“RJTCF”) revenues increased 11% as they invested $375 million for institutional investors versus $277 million in the prior year.
Interest revenue increased related to higher average fixed income inventory levels.
Expenses were generally in line with revenue growth with two exceptions.
Communications and information processing increased predominantly due to increased costs associated with market information systems and software development costs.
Other expense reflects a shift to the use of electronic and other non-exchange clearing methods and includes transaction related underwriting expenses incurred by RJTCF.
Year ended September 30, 2006 Compared with the Year ended September 30, 2005 – Capital Markets The Capital Markets segment’s revenues and pre-tax profits increased just slightly from the prior year’s record results.
Commission revenues in the segment were flat, as a 37% decline in fixed income commissions was offset by the 13% increase in institutional equity commissions, the latter continuing to be fueled by an active new issue market.
RJA equity market conditions remained strong, allowing RJA to complete 97 managed or co-managed domestic underwritings, just one short of the record 98 underwritings completed in fiscal 2005.  RJ Ltd.  completed a record 29 managed or co-managed underwritings, up nine from fiscal 2005.
Merger and acquisition fees increased modestly from the prior year's record level, offsetting the decline in private placement fees.
Equity Capital Market's most active strategic business units in fiscal 2006 were Energy, Technology, Financial Services and Real Estate.
increased taxes, licenses and fees by $25 million.
These factors combined to result in a 0.5 point negative impact on the Personal segment’s 2005 underwriting expense ratio.
In 2004, the 1.2 increase in the underwriting expense ratio over 2003 reflected the impact of the same investments described above.

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For the fiscal years ended October 31,
2019	2018	2017
Dollars in millions
Net revenue	$507	$543	$553
Loss from operations	$-108	$-91	$-91
Loss from operations as a % of net revenue	-21.3%	-16.8%	-16.5%

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Total	Less Than1 Year	1 - 3 Years	4 - 5 Years	After 5 Years
Long-term debt (including future interest payments)	$1,841,887	$72,688	$781,969	$591,292	$395,938
Contingent acquisition payments	12,060	6,979	5,081	—	—
Capital lease obligations	5,628	1,026	2,197	2,405	—
Operating leases	820,905	230,163	401,809	155,120	33,813
One-time transition tax liability	17,721	2,448	4,053	3,795	7,425
Guaranty on Refund Advance loans	1,571	1,571	—	—	—
Total contractual cash obligations	$2,699,772	$314,875	$1,195,109	$752,612	$437,176

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Credit Card (a)	Other Consumer (b)
Dollars in millions	Amount	% of Total Loans Using FICO Credit Metric	Amount	% of Total Loans Using FICO Credit Metric
December 31, 2012
FICO score greater than 719	$2,247	52%	$7,006	60%
650 to 719	1,169	27	2,896	25
620 to 649	188	5	459	4
Less than 620	271	6	602	5
No FICO score available or required (c)	428	10	741	6
Total loans using FICO credit metric	4,303	100%	11,704	100%
Consumer loans using other internal credit metrics (b)	9,747
Total loan balance	$4,303	$21,451
Weighted-average updated FICO score (d)	726	739
December 31, 2011
FICO score greater than 719	$2,016	51%	$5,556	61%
650 to 719	1,100	28	2,125	23
620 to 649	184	5	370	4
Less than 620	284	7	548	6
No FICO score available or required (c)	392	9	574	6
Total loans using FICO credit metric	3,976	100%	9,173	100%
Consumer loans using other internal credit metrics (b)	9,993
Total loan balance	$3,976	$19,166
Weighted-average updated FICO score (d)	723	739

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2014	$4,067
2015	—
2016	500
2017	750
2018	125
2019 and thereafter	6,600
Total	$12,042

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Year Ended
September 30, 2007	% Incr. (Decr.)	September 30, 2006	% Incr. (Decr.)	September 30, 2005
($ in 000\'s)
Revenues:
Institutional Sales Commissions:
Equity	$ 210,343	-3%	$ 217,840	13%	$ 193,001
Fixed Income	44,454	6%	41,830	-37%	66,431
Underwriting Fees	93,712	11%	84,303	8%	77,900
Mergers & Acquisitions Fees	59,929	34%	44,693	5%	42,576
Private Placement Fees	2,262	-3%	2,334	-56%	5,338
Trading Profits	9,262	-58%	21,876	15%	19,089
Raymond James Tax Credit Funds	35,123	11%	31,710	19%	26,630
Interest	46,772	29%	36,311	74%	20,847
Other	4,641	-29%	6,522	95%	3,339
Total Revenue	506,498	4%	487,419	7%	455,151
Interest Expense	56,841	23%	46,126	133%	19,838
Net Revenues	449,657	2%	441,293	1%	435,313
Non-Interest Expenses
Sales Commissions	98,903	2%	96,649	-3%	99,223
Admin & Incentive Comp and Benefit Costs	204,512	2%	200,453	2%	197,170
Communications and Information Processing	32,366	20%	27,084	13%	24,071
Occupancy and Equipment	13,196	9%	12,073	-4%	12,563
Business Development	23,468	6%	22,177	17%	18,995
Clearance and Other	23,054	16%	19,907	38%	14,395
Total Non-Interest Expense	395,499	5%	378,343	3%	366,417
Income Before Taxes and Minority Interest	54,158	-14%	62,950	-9%	68,896
Minority Interest	-14,808	-15,271	-8,437
Pre-tax Earnings	$ 68,966	-12%	$ 78,221	1%	$ 77,333

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Question: How many Amount for Credit Card (a) exceed the average of Amount for Credit Card (a) in 2012?
Answer: 2