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32.93 | What's the total amount of the High of Market price range in the years where Market value at year-end greater than 9? (in million) | PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the New York Stock Exchange under the trading symbol “HFC. ” In September 2018, our Board of Directors approved a $1 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. The following table includes repurchases made under this program during the fourth quarter of 2018.
<table><tr><td>Period</td><td>Total Number ofShares Purchased</td><td>Average PricePaid Per Share</td><td>Total Number ofShares Purchasedas Part of Publicly Announced Plans or Programs</td><td>Maximum DollarValue of Sharesthat May Yet BePurchased under the Plans or Programs</td></tr><tr><td>October 2018</td><td>1,360,987</td><td>$66.34</td><td>1,360,987</td><td>$859,039,458</td></tr><tr><td>November 2018</td><td>450,000</td><td>$61.36</td><td>450,000</td><td>$831,427,985</td></tr><tr><td>December 2018</td><td>912,360</td><td>$53.93</td><td>810,000</td><td>$787,613,605</td></tr><tr><td>Total for October to December 2018</td><td>2,723,347</td><td></td><td>2,620,987</td><td></td></tr></table>
During the quarter ended December 31, 2018, 102,360 shares were withheld from certain executives and employees under the terms of our share-based compensation agreements to provide funds for the payment of payroll and income taxes due at vesting of restricted stock awards. As of February 13, 2019, we had approximately 97,419 stockholders, including beneficial owners holding shares in street name. We intend to consider the declaration of a dividend on a quarterly basis, although there is no assurance as to future dividends since they are dependent upon future earnings, capital requirements, our financial condition and other factors.
<table><tr><td></td><td>2015</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td></td><td colspan="5">(In millions, except per share data)</td></tr><tr><td>COMMON STOCK DATA</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash dividends declared per common share</td><td>$0.23</td><td>$0.18</td><td>$0.10</td><td>$0.04</td><td>$0.04</td></tr><tr><td>Common equity book value per share</td><td>12.35</td><td>11.81</td><td>11.04</td><td>10.57</td><td>10.33</td></tr><tr><td>Tangible common book value per share (non-GAAP)<sup>(1)</sup></td><td>8.52</td><td>8.18</td><td>7.47</td><td>7.05</td><td>6.31</td></tr><tr><td>Market value at year-end</td><td>9.60</td><td>10.56</td><td>9.89</td><td>7.13</td><td>4.30</td></tr><tr><td>Market price range:<sup>-5</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High</td><td>10.87</td><td>11.54</td><td>10.52</td><td>7.73</td><td>8.09</td></tr><tr><td>Low</td><td>8.54</td><td>8.85</td><td>7.13</td><td>4.21</td><td>2.82</td></tr><tr><td>Total trading volume</td><td>4,243</td><td>3,689</td><td>3,962</td><td>5,282</td><td>5,204</td></tr><tr><td>Dividend payout ratio</td><td>30.76%</td><td>22.80%</td><td>13.31%</td><td>5.59%</td><td>NM</td></tr><tr><td>Stockholders of record at year-end (actual)</td><td>51,270</td><td>57,529</td><td>63,815</td><td>67,574</td><td>73,659</td></tr><tr><td>Weighted-average number of common shares outstanding</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>1,325</td><td>1,375</td><td>1,395</td><td>1,381</td><td>1,258</td></tr><tr><td>Diluted</td><td>1,334</td><td>1,387</td><td>1,410</td><td>1,387</td><td>1,258</td></tr></table>
NM—Not meaningful (1) See Table 2 for GAAP to non-GAAP reconciliations. (2) Current year Basel III common equity Tier 1, Tier 1 capital, Total capital, and Leverage capital ratios are estimated. (3) Regions' regulatory capital ratios for years prior to 2015 have not been revised to reflect the retrospective application of new accounting guidance related to investments in qualified affordable housing projects. (4) Beginning in 2015, Regions' regulatory capital ratios are calculated pursuant to the phase-in provisions of the Basel III Rules. All prior period ratios were calculated pursuant to the Basel I capital rules. (5) High and low market prices are based on intraday sales prices. NON-GAAP MEASURES The table below presents computations of earnings and certain other financial measures, which exclude certain significant items that are included in the financial results presented in accordance with GAAP. These non-GAAP financial measures include “adjusted fee income ratio”, “adjusted efficiency ratio”, “return on average tangible common stockholders’ equity”, average and end of period “tangible common stockholders’ equity”, and “Basel III CET1, on a fully phased-in basis” and related ratios. Regions believes that expressing earnings and certain other financial measures excluding these significant items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business because management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAPfinancial measures will permit investors to assess the performance of the Company on the same basis as that applied by management. Management and the Board utilize these non-GAAP financial measures as follows: ? Preparation of Regions’ operating budgets ? Monthly financial performance reporting ? Monthly close-out reporting of consolidated results (management only) ? Presentations to investors of Company performance The adjusted efficiency ratio (non-GAAP), which is a measure of productivity, is generally calculated as non-interest expense divided by total revenue on a taxable-equivalent basis. The adjusted fee income ratio (non-GAAP) is generally calculated as noninterest income divided by total revenue on a taxable-equivalent basis. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Noninterest income (GAAP) is presented excluding adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Net interest income and other financing income on a taxable-equivalent basis and noninterest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted efficiency and adjusted fee income ratios. Tangible common stockholders’ equity ratios have become a focus of some investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank’s capital adequacy based on Tier 1 capital, the calculation of which is codified in federal banking regulations. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ Table of Contents 75 Other Assets Other assets decreased $92 million to $5.9 billion as of December 31, 2015. Timing differences between settlement and trade date accounting primarily drove the decrease. The decrease was offset by increases in the cash surrender value of investments in bank-owned life insurance and additional investments in affordable housing. Deposits Regions competes with other banking and financial services companies for a share of the deposit market. Regions’ ability to compete in the deposit market depends heavily on the pricing of its deposits and how effectively the Company meets customers’ needs. Regions employs various means to meet those needs and enhance competitiveness, such as providing a high level of customer service, competitive pricing and providing convenient branch locations for its customers. Regions also serves customers through providing centralized, high-quality banking services and alternative product delivery channels such as internet banking. Deposits are Regions’ primary source of funds, providing funding for 90 percent of average earning assets in both 2015 and 2014. Table 21 “Deposits” details year-over-year deposits on a period-ending basis. Total deposits at December 31, 2015 increased approximately $4.2 billion compared to year-end 2014 levels. The increase in deposits was primarily driven by increases in noninterest-bearing demand, interest-bearing transaction and money market accounts. These increases were partially offset by continued declines in time deposits. Due to liquidity in the market, Regions has been able to steadily grow its low-cost customer deposits and reduce its total deposit costs from 15 basis points in 2013 to 11 basis points in both 2014 and 2015. The following table summarizes deposits by category as of December 31: Table 21—Deposits
<table><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(In millions)</td></tr><tr><td>Non-interest-bearing demand</td><td>$34,862</td><td>$31,747</td><td>$30,083</td></tr><tr><td>Savings</td><td>7,287</td><td>6,653</td><td>6,250</td></tr><tr><td>Interest-bearing transaction</td><td>21,902</td><td>21,544</td><td>20,789</td></tr><tr><td>Money market—domestic</td><td>26,468</td><td>25,396</td><td>25,435</td></tr><tr><td>Money market—foreign</td><td>243</td><td>265</td><td>220</td></tr><tr><td>Low-cost deposits</td><td>90,762</td><td>85,605</td><td>82,777</td></tr><tr><td>Time deposits</td><td>7,468</td><td>8,595</td><td>9,608</td></tr><tr><td>Customer deposits</td><td>98,230</td><td>94,200</td><td>92,385</td></tr><tr><td>Corporate treasury time deposits</td><td>200</td><td>—</td><td>68</td></tr><tr><td></td><td>$98,430</td><td>$94,200</td><td>$92,453</td></tr></table>
Within customer deposits, non-interest-bearing demand deposits increased $3.1 billion to $34.9 billion. Non-interest-bearing deposits accounted for approximately 35 percent of total deposits at year-end 2015 compared to 34 percent at year-end 2014. Savings balances increased $634 million to $7.3 billion, generally reflecting continued consumer savings trends, spurred by economic uncertainty. Interest-bearing transaction accounts increased $358 million to $21.9 billion. Interest-bearing transaction deposits accounted for approximately 22 percent and 23 percent of total deposits at year-end 2015 and 2014, respectively. Domestic money market products, which exclude foreign money market accounts, are one of Regions’ most significant funding sources. These balances accounted for 27 percent of total deposits in both 2015 and 2014. Included in customer time deposits are certificates of deposit and individual retirement accounts. The balance of customer time deposits decreased 13 percent in 2015 to $7.5 billion compared to $8.6 billion in 2014. The decrease was primarily due to maturities with minimal reinvestment by customers as a result of the continued decline in interest rates offered on these products. Customer time deposits accounted for 8 percent of total deposits in 2015 compared to 9 percent in 2014. See Table 22 “Maturity of Time Deposits of $100,000 or More” for maturity information. During 2015, corporate treasury deposits remained at low levels as the Company continued to utilize customer-based funding and other sources. The sensitivity of Regions’ deposit rates to changes in market interest rates is reflected in Regions’ average interest rate paid on interest-bearing deposits. The rate paid on interest-bearing deposits remained consistent at 0.17 percent in 2015 compared to 2014, driven by the expiration of time deposits, the positive mix shift to lower cost customer products, and continuation of the low interest rate environment throughout much of 2015. Table of Contents 77 Ratings Table 23 “Credit Ratings” reflects the debt ratings information of Regions Financial Corporation and Regions Bank by Standard and Poor's ("S&P"), Moody’s, Fitch and Dominion Bond Rating Service ("DBRS") as of December 31, 2015 and 2014. Table 23—Credit Ratings
<table><tr><td></td><td colspan="4">As of December 31, 2015</td></tr><tr><td></td><td>S&P</td><td>Moody’s</td><td>Fitch</td><td>DBRS</td></tr><tr><td>Regions Financial Corporation</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior notes</td><td>BBB</td><td>Baa3</td><td>BBB</td><td>BBB</td></tr><tr><td>Subordinated notes</td><td>BBB-</td><td>Baa3</td><td>BBB-</td><td>BBBL</td></tr><tr><td>Regions Bank</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-term debt</td><td>A-2</td><td>P-2</td><td>F2</td><td>R-1L</td></tr><tr><td>Long-term bank deposits<sup>-1</sup></td><td>N/A</td><td>A3</td><td>BBB+</td><td>BBBH</td></tr><tr><td>Long-term debt</td><td>BBB+</td><td>A3</td><td>BBB</td><td>BBBH</td></tr><tr><td>Subordinated debt</td><td>BBB</td><td>Baa3</td><td>BBB-</td><td>BBB</td></tr><tr><td>Outlook</td><td>Stable</td><td>Stable</td><td>Stable</td><td>Positive</td></tr></table> |
115.56 | what is the total cash inflow from the stock purchases of employees in 2007 , ( in millions ) ? | an increase of $0.10 in the delivery area surcharge on both residential and commercial services to certain ZIP codes. These rate changes are customary, and are consistent with previous years’ rate increases. Additionally, we modified the fuel surcharge on domestic and U. S. -origin international air services by reducing by 2% the index used to determine the fuel surcharge. The UPS Ground fuel surcharge continues to fluctuate based on the U. S. Energy Department’s On-Highway Diesel Fuel Price. Rate changes for shipments originating outside the U. S. were made throughout the past year and varied by geographic market. In January 2008, UPS Freight announced a general rate increase averaging 5.4 percent covering non-contractual shipments in the United States and Canada. The increase goes into effect on February 4, 2008, and applies to minimum charge, LTL and TL rates. Investing Activities Net cash used in investing activities was $2.199 billion, $2.340 billion, and $975 million in 2007, 2006, and 2005, respectively. The decrease in cash used in 2007 compared with 2006 was primarily due to lower capital expenditures and increased net sales of marketable securities and short-term investments. Net sales of marketable securities and short-term investments were $621 million, $482 million, and $2.752 billion in 2007, 2006, and 2005, respectively, and were primarily used to fund our pension and postretirement medical benefit plans, as well as complete business acquisitions. In 2005, we spent $1.488 billion on business acquisitions, primarily Overnite Corp. , Lynx Express Ltd. in the United Kingdom, Messenger Service Stolica S. A. in Poland, and the express operations of Sinotrans Air Transportation Development Co. Ltd. in China (See Note 7 to the consolidated financial statements). We had a net cash use of $39 million in 2007, compared with cash generation of $68 and $95 million in 2006 and 2005, respectively, due to originations, sales, and customer paydowns of finance receivables, primarily in our commercial lending, asset-based lending, and leasing portfolios. In the second quarter of 2006, we terminated several energy derivatives and received $229 million in cash, which is reported in other investing activities in the statement of cash flows. These derivatives were designated as hedges of forecasted cash outflows for purchases of fuel products. As these derivatives maintained their effectiveness and qualified for hedge accounting, we recognized the gains associated with these hedges as a reduction of fuel expense over the original term of the hedges through 2007. Capital expenditures represent a primary use of cash in investing activities, as follows (in millions):
<table><tr><td></td><td> 2007</td><td> 2006</td><td> 2005</td></tr><tr><td>Buildings and facilities</td><td>$853</td><td>$720</td><td>$495</td></tr><tr><td>Aircraft and parts</td><td>1,137</td><td>1,150</td><td>874</td></tr><tr><td>Vehicles</td><td>492</td><td>831</td><td>456</td></tr><tr><td>Information technology</td><td>338</td><td>384</td><td>362</td></tr><tr><td></td><td>$2,820</td><td>$3,085</td><td>$2,187</td></tr></table>
As described in the “Commitments” section below, we have commitments for the purchase of aircraft, vehicles, equipment and other fixed assets to provide for the replacement of existing capacity and anticipated future growth. We fund our capital expenditures with our cash from operations. Financing Activities Net cash provided by (used in) financing activities was $2.297, ($3.851), and ($4.175) billion in 2007, 2006, and 2005, respectively. As of December 31, 2007, we increased our commercial paper borrowings to $7.366 billion, an increase of $6.575 billion over December 31, 2006. This issuance of commercial paper was used to fund the withdrawal payment to the Central States Pension Fund upon ratification of our labor contract with the Teamsters, as previously discussed. The commercial paper balance was reduced subsequent to December 31, 2007 as a result of an issuance of long-term debt (discussed further in the “Sources of Credit” section) and the receipt of an income tax refund. UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) UPS class B common stock on the first or the last day of each quarterly period. Employees purchased 1.8, 1.9, and 2.0 million shares at average prices of $64.20, $66.64, and $64.54 per share during 2007, 2006, and 2005, respectively. Compensation cost is measured for the fair value of employees’ purchase rights under our discounted employee stock purchase plan using the Black-Scholes option pricing model. The weighted average assumptions used and the calculated weighted average fair value of employees’ purchase rights granted, are as follows:
<table><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Expected dividend yield</td><td>2.13%</td><td>1.79%</td><td>1.62%</td></tr><tr><td>Risk-free interest rate</td><td>4.60%</td><td>4.59%</td><td>2.84%</td></tr><tr><td>Expected life in years</td><td>0.25</td><td>0.25</td><td>0.25</td></tr><tr><td>Expected volatility</td><td>16.26%</td><td>15.92%</td><td>15.46%</td></tr><tr><td>Weighted average fair value of purchase rights*</td><td>$9.80</td><td>$10.30</td><td>$9.46</td></tr></table>
* Includes the 10% discount from the market price. Expected volatilities are based on the historical price volatility on our publicly-traded class B shares. The expected dividend yield is based on the recent historical dividend yields for our stock, taking into account changes in dividend policy. The risk-free interest rate is based on the term structure of interest rates on U. S. Treasury securities at the time of the option grant. The expected life represents the three month option period applicable to the purchase rights. NOTE 12. SEGMENT AND GEOGRAPHIC INFORMATION We report our operations in three segments: U. S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. Package operations represent our most significant business and are broken down into regional operations around the world. Regional operations managers are responsible for both domestic and export operations within their geographic area. U. S. Domestic Package Domestic Package operations include the time-definite delivery of letters, documents, and packages throughout the United States. International Package International Package operations include delivery to more than 200 countries and territories worldwide, including shipments wholly outside the United States, as well as shipments with either origin or distribution outside the United States. Our International Package reporting segment includes the operations of our Europe, Asia, and Americas operating segments. Supply Chain & Freight Supply Chain & Freight includes our forwarding and logistics operations, UPS Freight, and other aggregated business units. Our forwarding and logistics business provides services in more than 175 countries and territories worldwide, and includes supply chain design and management, freight distribution, customs brokerage, mail and consulting services. UPS Freight offers a variety of LTL and TL services to customers in North America. Other aggregated business units within this segment include Mail Boxes, Etc. (the franchisor of Mail Boxes, Etc. and The UPS Store) and UPS Capital. UNITED PARCEL SERVICE, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 83 Certain plans have been aggregated in the “All Other Multiemployer Pension Plans” line in the following table, as the contributions to each of these individual plans are not material.
<table><tr><td></td><td>EIN / PensionPlan</td><td colspan="2">PensionProtection ActZone Status</td><td>FIP/RP StatusPending/</td><td colspan="3">(in millions)UPS Contributions and Accruals</td><td>Surcharge</td></tr><tr><td>Pension Fund</td><td>Number</td><td>2013</td><td>2012</td><td>Implemented</td><td>2013</td><td>2012</td><td>2011</td><td>Imposed</td></tr><tr><td>Alaska Teamster-Employer Pension Plan</td><td>92-6003463-024</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>$5</td><td>$4</td><td>$4</td><td>No</td></tr><tr><td>Automotive Industries Pension Plan</td><td>94-1133245-001</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>4</td><td>4</td><td>4</td><td>No</td></tr><tr><td>Central Pennsylvania Teamsters Defined Benefit Plan</td><td>23-6262789-001</td><td>Green</td><td>Yellow</td><td>Yes/Implemented</td><td>30</td><td>29</td><td>27</td><td>No</td></tr><tr><td>Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund</td><td>55-6021850-001</td><td>Green</td><td>Green</td><td>No</td><td>9</td><td>9</td><td>8</td><td>No</td></tr><tr><td>Hagerstown Motor Carriers and Teamsters Pension Fund</td><td>52-6045424-001</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>5</td><td>5</td><td>5</td><td>No</td></tr><tr><td>I.A.M. National Pension Fund / National Pension Plan</td><td>51-6031295-002</td><td>Green</td><td>Green</td><td>No</td><td>27</td><td>24</td><td>25</td><td>No</td></tr><tr><td>International Brotherhood of Teamsters Union Local No. 710 Pension Fund</td><td>36-2377656-001</td><td>Green</td><td>Green</td><td>No</td><td>88</td><td>75</td><td>74</td><td>No</td></tr><tr><td>Local 705, International Brotherhood of Teamsters Pension Plan</td><td>36-6492502-001</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>68</td><td>46</td><td>58</td><td>No</td></tr><tr><td>Local 804 I.B.T. & Local 447 I.A.M.—UPS Multiemployer Retirement Plan</td><td>51-6117726-001</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>88</td><td>87</td><td>84</td><td>No</td></tr><tr><td>Milwaukee Drivers Pension Trust Fund</td><td>39-6045229-001</td><td>Green</td><td>Green</td><td>No</td><td>29</td><td>26</td><td>26</td><td>No</td></tr><tr><td>New England Teamsters & Trucking Industry Pension Fund</td><td>04-6372430-001</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>102</td><td>124</td><td>124</td><td>No</td></tr><tr><td>New York State Teamsters Conference Pension and Retirement Fund</td><td>16-6063585-074</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>72</td><td>65</td><td>57</td><td>No</td></tr><tr><td>Teamster Pension Fund of Philadelphia and Vicinity</td><td>23-1511735-001</td><td>Yellow</td><td>Yellow</td><td>Yes/Implemented</td><td>46</td><td>44</td><td>41</td><td>No</td></tr><tr><td>Teamsters Joint Council No. 83 of Virginia Pension Fund</td><td>54-6097996-001</td><td>Yellow</td><td>Yellow</td><td>Yes/Implemented</td><td>49</td><td>44</td><td>41</td><td>No</td></tr><tr><td>Teamsters Local 639—Employers Pension Trust</td><td>53-0237142-001</td><td>Green</td><td>Green</td><td>No</td><td>41</td><td>36</td><td>33</td><td>No</td></tr><tr><td>Teamsters Negotiated Pension Plan</td><td>43-6196083-001</td><td>Yellow</td><td>Red</td><td>Yes/Implemented</td><td>26</td><td>24</td><td>22</td><td>No</td></tr><tr><td>Truck Drivers and Helpers Local Union No. 355 Retirement Pension Plan</td><td>52-6043608-001</td><td>Yellow</td><td>Yellow</td><td>Yes/Implemented</td><td>14</td><td>14</td><td>12</td><td>No</td></tr><tr><td>United Parcel Service, Inc.—Local 177, I.B.T. Multiemployer Retirement Plan</td><td>13-1426500-419</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>68</td><td>62</td><td>57</td><td>No</td></tr><tr><td>Western Conference of Teamsters Pension Plan</td><td>91-6145047-001</td><td>Green</td><td>Green</td><td>No</td><td>553</td><td>520</td><td>476</td><td>No</td></tr><tr><td>Western Pennsylvania Teamsters and Employers Pension Fund</td><td>25-6029946-001</td><td>Red</td><td>Red</td><td>Yes/Implemented</td><td>23</td><td>24</td><td>21</td><td>No</td></tr><tr><td>All Other Multiemployer Pension Plans</td><td></td><td></td><td></td><td></td><td>49</td><td>59</td><td>44</td><td></td></tr><tr><td></td><td></td><td></td><td></td><td>Total Contributions</td><td>$1,396</td><td>$1,325</td><td>$1,243</td><td></td></tr></table>
In 2012, we reached an agreement with the New England Teamsters and Trucking Industry Pension Fund ("NETTI Fund"), a multiemployer pension plan in which UPS is a participant, to restructure the pension liabilities for approximately 10,200 UPS employees represented by the Teamsters. The agreement reflected a decision by the NETTI Fund's trustees to restructure the NETTI Fund through plan amendments to utilize a "two pool approach", which effectively subdivided the plan assets and liabilities between two groups of beneficiaries. As part of this agreement, UPS agreed to withdraw from the original pool of the NETTI Fund, of which it had historically been a participant, and reenter the NETTI Fund's newly-established pool as a new employer. Upon ratification of the agreement by the Teamsters in September 2012, we withdrew from the original pool of the NETTI Fund and incurred an undiscounted withdrawal liability of $2.162 billion to be paid in equal monthly installments over 50 years. The undiscounted withdrawal liability was calculated by independent actuaries employed by the NETTI Fund, in accordance with the governing plan documents and the applicable requirements of the Employee Retirement Income Security Act of 1974. In 2012, we recorded a charge to expense to establish an $896 million withdrawal liability on our consolidated balance sheet, which represents the present value of the $2.162 billion future payment obligation discounted at a 4.25% interest rate. This discount rate represents the estimated credit-adjusted market rate of interest at which we could obtain financing of a similar maturity and seniority. As this agreement is not a contribution to the plan, the amounts reflected in the previous table do not include this $896 million non-cash transaction. The $896 million charge to expense recorded in 2012 is included in "compensation and benefits" expense in the statements of consolidated income, while the corresponding withdrawal liability is included in "other non-current liabilities" on the consolidated balance sheet. We impute interest on the withdrawal liability using the 4.25% discount rate, while the monthly payments made to the NETTI Fund reduce the remaining balance of the withdrawal liability. AMGEN INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) sales (excluding amortization of intangible assets),” “Research and development” and “Selling, general and administrative” expenses for the year ended December 31, 2007 are the reversal of previously accrued expenses for bonuses and stock-based compensation awards totaling $31 million, which were forfeited as a result of the employees’ termination. We also recorded asset impairment charges of $59 million and $408 million during the years ended December 31, 2008 and 2007, respectively. The charges for both periods represent the write-off of the total cost of the related assets as they were abandoned with no alternative future uses or residual value. The charges for 2008 included impairments primarily for certain manufacturing-related assets. The charges in 2007 were primarily incurred in connection with our decisions to make changes to certain manufacturing and, to a lesser degree, certain R&D capital projects and to close certain production operations. In particular, these decisions in 2007 included certain revisions to and the subsequent indefinite postponement of our planned Ireland manufacturing operations, certain revisions to our planned manufacturing expansion in Puerto Rico and the closure of a clinical manufacturing facility in Thousand Oaks, California. In addition, in connection with the rationalization of our worldwide network of manufacturing facilities in 2007, we decided to accelerate the closure of one of our ENBREL commercial bulk manufacturing operations. The decision to accelerate the closure of this manufacturing operation was principally based on a thorough review of the supply plans for bulk ENBREL inventory across its worldwide manufacturing network, including consideration of expected increases in manufacturing yields, and the determination that the related assets no longer had any alternative future uses in our operations. Because the related estimated future cash flows for this manufacturing operation were sufficient to recover the respective book values, we were required to accelerate depreciation of the related assets rather than immediately impairing their carrying values. The amount included in “Cost of sales (excluding amortization of intangible assets)” in the table above, $147 million, represents the excess of the accelerated depreciation expense recognized during the year ended December 31, 2007 over the depreciation that would otherwise have been recorded, $6 million, if there were no plans to accelerate the closure of this manufacturing operation. During the years ended December 31, 2008 and 2007, we also recorded cost recoveries of $1 million and $114 million, respectively, for certain restructuring charges, principally with respect to accelerated depreciation, in connection with our co-promotion agreement with Wyeth. Such amounts are recorded as a reduction of the Wyeth profit share expense included in “Selling, general and administrative” expenses. Also included in “Selling, general and administrative” expenses in 2008 are $12 million of loss accruals for leases principally related to certain facilities that will not be used in our operations and $9 million for implementation costs associated with certain restructuring initiatives. In addition during the years ended December 31, 2008 and 2007, we accrued $49 million and $119 million, respectively, included in “Other charges,” primarily related to loss accruals for leases for certain facilities that will not be used in our operations. For 2007, these charges primarily related to loss accruals for leases for certain R&D facilities. In addition, in 2008, we recorded a $10 million loss on the disposal of certain less significant marketed products that is included in “Interest and other income, net. ” The following table summarizes the charges and spending relating to the restructuring plan (in millions):
<table><tr><td></td><td>Separation costs</td><td>Other</td><td>Total</td></tr><tr><td>Restructuring reserves as of January 1, 2007</td><td>$—</td><td>$—</td><td>$—</td></tr><tr><td>Expense</td><td>209</td><td>119</td><td>328</td></tr><tr><td>Payments</td><td>-112</td><td>-17</td><td>-129</td></tr><tr><td>Restructuring reserves as of December 31, 2007</td><td>97</td><td>102</td><td>199</td></tr><tr><td>Expense</td><td>10</td><td>76</td><td>86</td></tr><tr><td>Payments</td><td>-103</td><td>-16</td><td>-119</td></tr><tr><td>Restructuring reserves as of December 31, 2008</td><td>$4</td><td>$162</td><td>$166</td></tr></table>
Introduction This introduction contains certain information about Con Edison and its subsidiaries, including CECONY. This introduction is not a summary and should be read together with, and is qualified in its entirety by reference to, the more detailed information appearing elsewhere or incorporated by reference in this report. Con Edison’s mission is to provide energy services to our customers safely, reliably, efficiently and in an environmentally sound manner; to provide a workplace that allows employees to realize their full potential; to provide a fair return to our investors; and to improve the quality of life in the communities we serve. The company has ongoing programs designed to support its mission, including initiatives focused on safety, operational excellence, the customer experience and cost optimization. Con Edison is a holding company that owns: ? Consolidated Edison Company of New York, Inc. (CECONY), which delivers electricity, natural gas and steam to customers in New York City and Westchester County; ? Orange & Rockland Utilities, Inc. (O&R), which together with its subsidiary, Rockland Electric Company, delivers electricity and natural gas to customers primarily located in southeastern New York State and northern New Jersey (O&R, together with CECONY referred to as the Utilities); ? Con Edison Clean Energy Businesses, Inc. , which through its subsidiaries develops, owns and operates renewable and energy infrastructure projects and provides energy-related products and services to wholesale and retail customers (Con Edison Clean Energy Businesses, Inc. , together with its subsidiaries referred to as the Clean Energy Businesses); and ? Con Edison Transmission, Inc. , which through its subsidiaries invests in electric and gas transmission projects (Con Edison Transmission, Inc. , together with its subsidiaries referred to as Con Edison Transmission). Con Edison anticipates that the Utilities, which are subject to extensive regulation, will continue to provide substantially all of its earnings over the next few years. The Utilities have approved rate plans that are generally designed to cover each company’s cost of service, including capital and other costs of each company’s energy delivery systems. The Utilities recover from their full-service customers (who purchase energy from them), generally on a current basis, the cost the Utilities pay for energy and charge all of their customers the cost of delivery service. See "Utility Regulation" in Item 1, "Risk Factors" in Item 1A and "Rate Plans" in Note B to the financial statements in Item 8. Selected Financial Data Con Edison
<table><tr><td></td><td colspan="5">For the Year Ended December 31,</td></tr><tr><td>(Millions of Dollars, except per share amounts)</td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td></tr><tr><td>Operating revenues</td><td>$12,919</td><td>$12,554</td><td>$12,075</td><td>$12,033</td><td>12,337</td></tr><tr><td>Energy costs</td><td>4,513</td><td>3,716</td><td>3,088</td><td>2,625</td><td>2,948</td></tr><tr><td>Operating income (h)</td><td>2,591</td><td>2,879</td><td>2,780</td><td>2,774</td><td>2,664</td></tr><tr><td>Net income</td><td>1,092</td><td>1,193</td><td>1,245</td><td>1,525(g)</td><td>1,382(g)</td></tr><tr><td>Total assets (e)(f)</td><td>44,071</td><td>45,642(a)</td><td>48,255(b)</td><td>48,111(c)</td><td>53,920(d)</td></tr><tr><td>Long-term debt (e)</td><td>11,546</td><td>12,006</td><td>14,735</td><td>14,731</td><td>17,495</td></tr><tr><td>Total equity</td><td>12,585</td><td>13,061</td><td>14,306</td><td>15,425</td><td>16,839</td></tr><tr><td>Net Income per common share – basic</td><td>$3.73</td><td>$4.07</td><td>$4.15</td><td>$4.97</td><td>$4.43</td></tr><tr><td>Net Income per common share – diluted</td><td>$3.71</td><td>$4.05</td><td>$4.12</td><td>$4.94</td><td>$4.42</td></tr><tr><td>Dividends declared per common share</td><td>$2.52</td><td>$2.60</td><td>$2.68</td><td>$2.76</td><td>$2.86</td></tr><tr><td>Book value per share</td><td>$42.97</td><td>$44.50</td><td>$46.91</td><td>$49.72</td><td>$52.46</td></tr><tr><td>Average common shares outstanding(millions)</td><td>293</td><td>293</td><td>300</td><td>307</td><td>312</td></tr></table>
(a) Reflects a $2,382 million increase in net plant offset by a $970 million decrease in regulatory assets for unrecognized pension and other postretirement costs. See Notes B, E and F to the financial statements in Item 8. (b) Reflects a $3,007 million increase in net plant offset by a $1,002 million decrease in regulatory assets for unrecognized pension and other postretirement costs. See Notes B, E and F to the financial statements in Item 8. (c) Reflects a $2.384 million increase in net plant, offset by decreases in regulatory assets resulting from the enactment of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA) of $2,418 million (including the netting of $1,168 million against the a material effect on its consolidated financial statements. See Note 12 for details regarding a tax matter. NOTE 14 VARIABLE INTEREST ENTITIES In connection with the 2006 sale of approximately 5.6 million acres of forestlands, International Paper received installment notes (the Timber Notes) totaling approximately $4.8 billion. The Timber Notes were used as collateral for borrowings from third party lenders, which effectively monetized the Timber Notes through the creation of newly formed special purposes entities (the Entities). The monetization structure preserved the tax deferral that resulted from the 2006 forestlands sales. As of December 31, 2018, this deferred tax liability was $884 million. During 2015, International Paper initiated a series of actions in order to extend the 2006 monetization structure and maintain the long-term nature of the deferred tax liability. The Entities, with assets and liabilities primarily consisting of the Timber Notes and third-party bank loans (the Extension Loans), were restructured which resulted in the formation of whollyowned, bankruptcy-remote special purpose entities (the 2015 Financing Entities). The Timber Notes are shown in Financial assets of special purpose entities on the accompanying consolidated balance sheet and mature in August 2021 unless extended for an additional five years. These notes, which do not require principal payments prior to their maturity, are supported by approximately $4.8 billion of irrevocable letters of credit. The Extension Loans are shown in Nonrecourse financial liabilities of special purpose entities on the accompanying consolidated balance sheet and mature in the fourth quarter of 2020. These bank loans, totaling approximately $4.2 billion, are nonrecourse to the Company, and are secured by approximately $4.8 billion of Timber Notes, the irrevocable letters of credit supporting the Timber Notes and approximately $150 million of International Paper debt obligations. The $150 million of International Paper debt obligations are eliminated in the consolidation of the 2015 Financing Entities and are not reflected in the Company’s consolidated balance sheet. Provisions of loan agreements related to approximately $1.1 billion of the Extension Loans require the bank issuing letters of credit supporting the Timber Notes pledged as collateral to maintain a credit rating at or above a specified threshold. In the event the credit rating of the letter of credit bank is downgraded below the specified threshold, the letters of credit must be replaced within 60 days with letters of credit from a qualifying financial institution. As of December 31, 2018 and 2017, the fair value of the Timber Notes was $4.7 billion and $4.8 billion, respectively, and the fair value of the Extension Loans was $4.2 billion and $4.3 billion for the years ended 2018 and 2017. The Timber Notes and Extension Loans are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16. Activity between the Company and the 2015 Financing Entities was as follows:
<table><tr><td>In millions</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Revenue (a)</td><td>$95</td><td>$95</td><td>$95</td></tr><tr><td>Expense (a)</td><td>128</td><td>128</td><td>128</td></tr><tr><td>Cash receipts (b)</td><td>95</td><td>95</td><td>77</td></tr><tr><td>Cash payments (c)</td><td>128</td><td>128</td><td>98</td></tr></table>
(a) The revenue and expense are included in Interest expense, net in the accompanying consolidated statement of operations. (b) The cash receipts are interest received on the Financial assets of special purpose entities. (c) The cash payments represent interest paid on Nonrecourse financial liabilities of special purpose entities. In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-owned subsidiaries of International Paper. The use of the two wholly-owned special purpose entities discussed below preserved the tax deferral that resulted from the 2007 Temple-Inland timberlands sales. As of December 31, 2018, this deferred tax liability was $538 million, which will be settled with the maturity of the notes in 2027. In October 2007, Temple-Inland sold 1.55 million acres of timberland for $2.4 billion. The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberland, which Temple-Inland contributed to two wholly-owned, bankruptcy-remote special purpose entities. The notes are shown in Financial assets of special purpose entities in the accompanying consolidated balance sheet and are supported by $2.4 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit ratings on their long-term debt. As of December 31, 2018 and 2017, the fair value of the notes was $2.2 billion and $2.3 billion, respectively. These notes are classified as Level 2 within the fair value hierarchy, which is further defined in Note 16. In December 2007, Temple-Inland's two wholly-owned special purpose entities borrowed $2.1 billion which is shown in Nonrecourse financial liabilities of special purpose entities. The loans are repayable in 2027 and are secured by the $2.4 billion of notes and the irrevocable letters of credit securing the notes, and are nonrecourse to us. The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded below the specified threshold, the |
0.26061 | In the year with largest amount of Gas purchased for resale, what's the increasing rate of Operating revenues? | HR Solutions
<table><tr><td>Years ended December 31,</td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Revenue</td><td>$2,111</td><td>$1,267</td><td>$1,356</td></tr><tr><td>Operating income</td><td>234</td><td>203</td><td>208</td></tr><tr><td>Operating margin</td><td>11.1%</td><td>16.0%</td><td>15.3%</td></tr></table>
In October 2010, we completed the acquisition of Hewitt, one of the world’s leading human resource consulting and outsourcing companies. Hewitt operates globally together with Aon’s existing consulting and outsourcing operations under the newly created Aon Hewitt brand. Hewitt’s operating results are included in Aon’s results of operations beginning October 1, 2010. Our HR Solutions segment generated approximately 25% of our consolidated total revenues in 2010 and provides a broad range of human capital services, as follows: Consulting Services: ? Health and Benefits advises clients about how to structure, fund, and administer employee benefit programs that attract, retain, and motivate employees. Benefits consulting includes health and welfare, executive benefits, workforce strategies and productivity, absence management, benefits administration, data-driven health, compliance, employee commitment, investment advisory and elective benefits services. ? Retirement specializes in global actuarial services, defined contribution consulting, investment consulting, tax and ERISA consulting, and pension administration. ? Compensation focuses on compensatory advisory/counsel including: compensation planning design, executive reward strategies, salary survey and benchmarking, market share studies and sales force effectiveness, with special expertise in the financial services and technology industries. ? Strategic Human Capital delivers advice to complex global organizations on talent, change and organizational effectiveness issues, including talent strategy and acquisition, executive on-boarding, performance management, leadership assessment and development, communication strategy, workforce training and change management. Outsourcing Services: ? Benefits Outsourcing applies our HR expertise primarily through defined benefit (pension), defined contribution (401(k)), and health and welfare administrative services. Our model replaces the resource-intensive processes once required to administer benefit plans with more efficient, effective, and less costly solutions. ? Human Resource Business Processing Outsourcing (‘‘HR BPO’’) provides market-leading solutions to manage employee data; administer benefits, payroll and other human resources processes; and record and manage talent, workforce and other core HR process transactions as well as other complementary services such as absence management, flexible spending, dependent audit and participant advocacy. Beginning in late 2008, the disruption in the global credit markets and the deterioration of the financial markets created significant uncertainty in the marketplace. Weak economic conditions globally continued throughout 2010. The prolonged economic downturn is adversely impacting our clients’ financial condition and therefore the levels of business activities in the industries and geographies where we operate. While we believe that the majority of our practices are well positioned to manage through this time, these challenges are reducing demand for some of our services and putting has liability. For a further discussion of claims and possible claims against O&R under Superfund, see Note G to the financial statements in Item 8. Manufactured Gas Sites O&R and its predecessors formerly owned and operated manufactured gas plants at seven sites (O&R MGP Sites) in Orange County and Rockland County, New York. Three of these sites are now owned by parties other than O&R, and have been redeveloped by them for residential, commercial or industrial uses. The NYSDEC is requiring O&R to develop and implement remediation programs for the O&R MGP Sites including any neighboring areas to which contamination may have migrated. O&R has completed remedial investigations at all seven of its MGP sites and has received the NYSDEC’s decision regarding the remedial work to be performed at six of the sites. Of the six sites, O&R has completed remediation at four sites. Remedial construction was initiated on a portion of one of the remaining sites in 2018 and remedial design is ongoing for the other remaining sites. The company estimates that its undiscounted potential liability for the completion of the site investigation and cleanup of the known contamination on MGP sites could range from $86 million to $142 million. Superfund Sites O&R is a PRP at Superfund sites involving other PRPs, and participates in PRP groups at those sites. The company is not managing the site investigation and remediation at these multiparty Superfund sites. Work at these sites is in various stages, and investigation, remediation and monitoring activities at some of these sites is expected to continue over extended periods of time. The company believes that it is unlikely that monetary sanctions, such as penalties, will be imposed by any governmental authority with respect to these sites. The following table lists each of the Superfund sites for which the company anticipates it may have liability. The table also shows for each such site its location, the year in which the company was designated or alleged to be a PRP or to otherwise have responsibilities for the site (shown in the table under “Start”), the name of the court or agency in which proceedings for the site are pending and O&R’s estimated percentage of the total liability for each site. The company currently estimates that its potential liability for investigation, remediation, monitoring and environmental damages in aggregate for the sites below is less than $1 million. Superfund liability is joint and several. The company’s estimate of its liability for each site was determined pursuant to consent decrees, settlement agreements or otherwise and in light of the financial condition of other PRPs. The company’s actual liability could differ substantially from amounts estimated.
<table><tr><td>Site</td><td>Location</td><td>Start</td><td>Court orAgency</td><td>% of TotalLiability</td></tr><tr><td>Metal Bank of America</td><td>Philadelphia, PA</td><td>1993</td><td>EPA</td><td>4.6%</td></tr><tr><td>Borne Chemical</td><td>Elizabeth, NJ</td><td>1997</td><td>NJDEP</td><td>2.3%</td></tr><tr><td>Ellis Road</td><td>Jacksonville, FL</td><td>2011</td><td>EPA</td><td>0.2%</td></tr></table>
Other Federal, State and Local Environmental Provisions Toxic Substances Control Act Virtually all electric utilities, including CECONY, own equipment containing PCBs. PCBs are regulated under the Federal Toxic Substances Control Act of 1976. The Utilities have procedures in place to manage and dispose of oil and equipment containing PCBs properly when they are removed from service. Water Quality Under NYSDEC regulations, the operation of CECONY’s generating facilities requires permits for water discharges and water withdrawals. Conditions to the renewal of such permits may include limitations on the operations of the permitted facility or requirements to install certain equipment, the cost of which could be substantial. For information about the company’s generating facilities, see “CECONY – Electric Operations – Electric Facilities” and “Steam Operations – Steam Facilities” above in this Item 1. Certain governmental authorities are investigating contamination in the Hudson River and the New York Harbor. These waters run through portions of CECONY’s service area. Governmental authorities could require entities that released hazardous substances that contaminated these waters to bear the cost of investigation and remediation, which could be substantial. Fuel expenses increased $23 million in 2017 compared with 2016 due to higher unit costs. Other operations and maintenance expenses decreased $119 million in 2017 compared with 2016 due primarily to lower costs for pension and other postretirement benefits ($89 million) and other employee benefits related to a rabbi trust ($22 million). Depreciation and amortization increased $60 million in 2017 compared with 2016 due primarily to higher electric utility plant balances. Taxes, other than income taxes increased $78 million in 2017 compared with 2016 due primarily to higher property taxes ($97 million) and the absence in 2017 of a favorable state audit settlement in 2016 ($5 million), offset in part by deferral of under-collected property taxes due to new property tax rates for fiscal year 2017 – 2018 ($21 million) and lower state and local taxes ($4 million). Gas CECONY’s results of gas operations for the year ended December 31, 2017 compared with the year ended December 31, 2016 is as follows
<table><tr><td></td><td colspan="3">For the Years Ended December 31,</td></tr><tr><td>(Millions of Dollars)</td><td>2017</td><td>2016</td><td>Variation</td></tr><tr><td>Operating revenues</td><td>$1,901</td><td>$1,508</td><td>$393</td></tr><tr><td>Gas purchased for resale</td><td>510</td><td>319</td><td>191</td></tr><tr><td>Other operations and maintenance</td><td>413</td><td>378</td><td>35</td></tr><tr><td>Depreciation and amortization</td><td>185</td><td>159</td><td>26</td></tr><tr><td>Taxes, other than income taxes</td><td>298</td><td>265</td><td>33</td></tr><tr><td>Gas operating income</td><td>$495</td><td>$387</td><td>$108</td></tr></table>
CECONY’s gas sales and deliveries, excluding off-system sales, in 2017 compared with 2016 were
<table><tr><td></td><td colspan="4">Thousands of Dt Delivered</td><td colspan="4">Revenues in Millions (a)</td></tr><tr><td></td><td colspan="2">For the Years Ended</td><td colspan="2"></td><td colspan="2">For the Years Ended</td><td colspan="2"></td></tr><tr><td>Description</td><td>December 31, 2017</td><td>December 31, 2016</td><td>Variation</td><td>Percent Variation</td><td>December 31, 2017</td><td>December 31, 2016</td><td>Variation</td><td>Percent Variation</td></tr><tr><td>Residential</td><td>52,244</td><td>47,794</td><td>4,450</td><td>9.3%</td><td>$802</td><td>$667</td><td>$135</td><td>20.2%</td></tr><tr><td>General</td><td>30,761</td><td>28,098</td><td>2,663</td><td>9.5</td><td>334</td><td>266</td><td>68</td><td>25.6</td></tr><tr><td>Firm transportation</td><td>71,353</td><td>68,442</td><td>2,911</td><td>4.3</td><td>524</td><td>426</td><td>98</td><td>23.0</td></tr><tr><td>Total firm sales and transportation</td><td>154,358</td><td>144,334</td><td>10,024</td><td>6.9(b)</td><td>1,660</td><td>1,359</td><td>301</td><td>22.1</td></tr><tr><td>Interruptible sales (c)</td><td>7,553</td><td>8,957</td><td>-1,404</td><td>-15.7</td><td>35</td><td>34</td><td>1</td><td>2.9</td></tr><tr><td>NYPA</td><td>37,033</td><td>43,101</td><td>-6,068</td><td>-14.1</td><td>2</td><td>2</td><td>—</td><td>—</td></tr><tr><td>Generation plants</td><td>61,800</td><td>87,835</td><td>-26,035</td><td>-29.6</td><td>25</td><td>25</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>21,317</td><td>21,165</td><td>152</td><td>0.7</td><td>31</td><td>32</td><td>-1</td><td>-3.1</td></tr><tr><td>Other operating revenues (d)</td><td>—</td><td>—</td><td>—</td><td>—</td><td>148</td><td>56</td><td>92</td><td>Large</td></tr><tr><td>Total</td><td>282,061</td><td>305,392</td><td>-23,331</td><td>-7.6%</td><td>$1,901</td><td>$1,508</td><td>$393</td><td>26.1%</td></tr></table>
(a) Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which, delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. (b) After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in the company’s service area increased 5.9 percent in 2017 compared with 2016, reflecting primarily increased volumes attributable to the growth in the number of gas customers. (c) Includes 3,816 thousands and 4,708 thousands of Dt for 2017 and 2016, respectively, which are also reflected in firm transportation and other. (d) Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements in Item 8. Operating revenues increased $393 million in 2017 compared with 2016 due primarily to increased gas purchased for resale expense ($191 million) and higher revenues from the gas rate plan and growth in the number of customers ($182 million). Gas purchased for resale increased $191 million in 2017 compared with 2016 due to higher unit costs ($176 million) and purchased volumes ($15 million). |
0.01039 | What is the growing rate of Net interest income in the years with the least Total revenue, net of interest expense? | Supplemental Financial Data We view net interest income and related ratios and analyses (i. e. , efficiency ratio and net interest yield) on a FTE basis. Although these are non-GAAP measures, we believe managing the business with net interest income on a FTE basis provides a more accurate picture of the interest margin for comparative purposes. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. As mentioned above, certain per formance measures including the efficiency ratio and net interest yield utilize net interest income (and thus total revenue) on a FTE basis. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield evaluates how many basis points we are earning over the cost of funds. During our annual planning process, we set efficiency targets for the Corporation and each line of business. We believe the use of these non-GAAP measures provides additional clarity in assessing our results. Targets vary by year and by business and are based on a variety of factors including maturity of the business, competitive environment, market factors and other items including our risk appetite. We also evaluate our business based on the following ratios that utilize tangible equity, a non-GAAP measure. Return on average tangible common shareholders’ equity measures our earnings contribution as a percentage of common shareholders’ equity plus any Common Equivalent Securities (CES) less goodwill and intangible assets, (excluding MSRs), net of related deferred tax liabilities. ROTE measures our earnings contribution as a percentage of average shareholders’ equity less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. The tangible common equity ratio represents common shareholders’ equity plus any CES less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. The tangible equity ratio represents total shareholders’ equity less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. Tangible book value per common share represents ending common shareholders’ equity less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of common equivalent shares. These measures are used to evaluate our use of equity (i. e. , capital). In addition, profitability, relationship and investment models all use ROTE as key measures to support our overall growth goals. The aforementioned supplemental data and per formance measures are presented in Tables 6 and 7 and Statistical Tables XII and XIV. In addition, in Table 7 and Statistical Table XIV, we have excluded the impact of goodwill impairment charges of $12.4 billion recorded in 2010 when presenting earnings and diluted earnings per common share, the efficiency ratio, return on average assets, return on average common shareholders’ equity, return on average tangible common shareholders’ equity and ROTE. Accordingly, these are non-GAAP measures. Statistical Tables XIII and XV provide reconciliations of these non-GAAP measures with financial measures defined by GAAP. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate these measures and ratios differently
<table><tr><td>(Dollars in millions, except per share information)</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td> Fully taxable-equivalent basis data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest income</td><td>$52,693</td><td>$48,410</td><td>$46,554</td><td>$36,190</td><td>$35,818</td></tr><tr><td>Total revenue, net of interest expense</td><td>111,390</td><td>120,944</td><td>73,976</td><td>68,582</td><td>74,000</td></tr><tr><td>Net interest yield<sup>-1</sup></td><td>2.78%</td><td>2.65%</td><td>2.98%</td><td>2.60%</td><td>2.82%</td></tr><tr><td>Efficiency ratio</td><td>74.61</td><td>55.16</td><td>56.14</td><td>54.71</td><td>48.37</td></tr><tr><td> Performance ratios, excluding goodwill impairment charges<sup>-2</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Per common share information</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Earnings</td><td>$0.87</td><td></td><td></td><td></td><td></td></tr><tr><td>Diluted earnings</td><td>0.86</td><td></td><td></td><td></td><td></td></tr><tr><td>Efficiency ratio</td><td>63.48%</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average assets</td><td>0.42</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average common shareholders’ equity</td><td>4.14</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average tangible common shareholders’ equity</td><td>7.03</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average tangible shareholders’ equity</td><td>7.11</td><td></td><td></td><td></td><td></td></tr></table>
(1) Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $368 million and $379 million for 2010 and 2009. The Corporation did not have fees earned on overnight deposits during 2008, 2007 and 2006. (2) Per formance ratios are calculated excluding the impact of goodwill impairment charges of $12.4 billion recorded during 2010. Baker Hughes, a GE company Notes to Consolidated and Combined Financial Statements issuance pursuant to awards granted under the LTI Plan over its term which expires on the date of the annual meeting of the Company in 2027. A total of 53.7 million shares of Class A common stock are available for issuance as of December 31, 2017. As a result of the acquisition of Baker Hughes, on July 3, 2017, each outstanding Baker Hughes stock option was converted into an option to purchase a share of Class A common stock in the Company. Consequently, we issued 6.8 million stock options which are fully vested. Each converted option is subject to the same terms and conditions as applied to the original option, and the per share exercise price of each converted option was reduced by $17.50 to reflect the per share amount of the special dividend pursuant to the agreement associated with the Transactions. Additionally, as a result of the acquisition of Baker Hughes, there were 1.7 million Baker Hughes restricted stock units (RSUs) that were converted to BHGE RSUs at a fair value of $40.18. Stock-based compensation cost is measured at the date of grant based on the calculated fair value of the award and is generally recognized on a straight-line basis over the vesting period of the equity grant. The compensation cost is determined based on awards ultimately expected to vest; therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. There were no stock-based compensation costs capitalized as the amounts were not material. During the year ended December 31, 2017, we issued 2.1 million RSUs and 1.6 million stock options under the LTI Plan. These RSUs and stock options generally vest in equal amounts over a three-year vesting period provided that the employee has remained continuously employed by the Company through such vesting date. Stock based compensation expense was $37 million in 2017. Included in this amount is $15 million of expense which relates to the acceleration of equity awards upon termination of employment of Baker Hughes employees with change in control agreements, and are included as part of "Merger and related costs" in the consolidated and combined statements of income (loss). As BHGE LLC is a pass through entity, any tax benefit would be recognized by its partners. Due to its cumulative losses, BHGE is unable to recognize a tax benefit on its share of stock related expenses. Stock Options The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The following table presents the weighted average assumptions used in the option pricing model for options granted under the LTI Plan. The expected life of the options represents the period of time the options are expected to be outstanding. The expected life is based on a simple average of the vesting term and original contractual term of the awards. The expected volatility is based on the historical volatility of our five main competitors over a six year period. The risk-free interest rate is based on the observed U. S. Treasury yield curve in effect at the time the options were granted. The dividend yield is based on a five year history of dividend payouts in Baker Hughes.
<table><tr><td></td><td>2017</td></tr><tr><td>Expected life (years)</td><td>6</td></tr><tr><td>Risk-free interest rate</td><td>2.1%</td></tr><tr><td>Volatility</td><td>36.4%</td></tr><tr><td>Dividend yield</td><td>1.2%</td></tr><tr><td>Weighted average fair value per share at grant date</td><td>$12.32</td></tr></table>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Fiscal years ended May 25, 2008, May 27, 2007, and May 28, 2006 Columnar Amounts in Millions Except Per Share Amounts The following table presents estimated future gross benefit payments and Medicare Part D subsidy receipts for the Company’s plans:
<table><tr><td></td><td></td><td colspan="2">Health Care and Life Insurance</td></tr><tr><td></td><td> Pension Benefits</td><td> Benefit Payments</td><td>Subsidy Receipts</td></tr><tr><td>2009</td><td>$125.1</td><td>$44.2</td><td>$-4.3</td></tr><tr><td>2010</td><td>129.2</td><td>45.1</td><td>-4.5</td></tr><tr><td>2011</td><td>133.7</td><td>45.4</td><td>-4.4</td></tr><tr><td>2012</td><td>137.7</td><td>45.2</td><td>-4.3</td></tr><tr><td>2013</td><td>143.3</td><td>43.7</td><td>-4.1</td></tr><tr><td>Succeeding 5 years</td><td>805.6</td><td>196.2</td><td>-18.2</td></tr></table>
Certain employees of the Company are covered under defined contribution plans. The expense related to these plans was $24.4 million, $22.9 million, and $25.9 million in fiscal 2008, 2007, and 2006, respectively.19. RELATED PARTY TRANSACTIONS Sales to affiliates (equity method investees) of $4.2 million, $3.8 million, and $2.9 million for fiscal 2008, 2007, and 2006, respectively, are included in net sales. The Company received management fees from affiliates of $16.3 million, $14.8 million, and $13.5 million in fiscal 2008, 2007, and 2006, respectively. Accounts receivable from affiliates totaled $3.2 million and $2.5 million at May 25, 2008 and May 27, 2007, respectively, of which $3.0 million and $2.1 million are included in current assets held for sale, respectively. Accounts payable to affiliates totaled $15.6 million and $13.5 million at May 25, 2008 and May 27, 2007, respectively. During the first quarter of fiscal 2007, the Company sold an aircraft for proceeds of approximately $8.1 million to a company on whose board of directors one of the Company’s directors sits. The Company recognized a gain of approximately $3.0 million on the transaction. The Company leases various buildings that are beneficially owned by Opus Corporation or entities related to Opus Corporation (the “Opus Entities”). The Opus Entities are affiliates or part of a large, national real estate development company. A former member of the Company’s Board of Directors, who left the board in the second quarter of fiscal 2008, is a beneficial owner, officer and chairman of Opus Corporation, and a director or officer of the related entities. The agreements relate to the leasing of land, buildings, and equipment for the Company in Omaha, Nebraska. The Company occupies the buildings pursuant to long-term leases with Opus Corporation and other investors, and the leases contain various termination rights and purchase options. The Company made rental payments of $13.5 million, $14.4 million, and $15.8 million in fiscal 2008, 2007, and 2006, respectively, to the Opus Entities. The Company has also contracted with the Opus Entities for construction and property management services. The Company made payments of $1.6 million, $2.8 million, and $3.0 million to the Opus Entities for these services in fiscal 2008, 2007, and 2006, respectively.20. BUSINESS SEGMENTS AND RELATED INFORMATION The Company’s operations are organized into three reporting segments: Consumer Foods, Food and Ingredients, and International Foods. The Consumer Foods reporting segment includes branded, private label, and customized food products which are sold in various retail and foodservice channels. The products include a variety of categories (meals, entrees, condiments, sides, snacks, and desserts) across frozen, refrigerated, and services revenue net of direct expenses reflecting higher financially reportable development revenue; and $65 million of stronger owned, leased, corporate housing and other revenue net of direct expenses. The fee improvement versus the prior year also reflects the recognition in 2005 of $14 million of incentive fees that were calculated based on prior period results, but not earned and due until 2005. The increase in owned, leased, corporate housing and other revenue net of direct expenses is primarily attributable to properties acquired in 2005, including the CTF properties, the strong demand environment in 2005, and our receipt in 2005, of a $10 million termination fee associated with one property that left our system. The favorable items noted above were partially offset by $146 million of increased general and administrative expenses and $46 million of lower synthetic fuel revenue net of synthetic fuel expenses. Increased general and administrative expenses were associated with our Lodging segments as unallocated general and administrative expenses were down slightly compared to the prior year. The increase in general, administrative and other expenses reflects a $94 million pre-tax charge impacting our Full-Service Lodging segment, primarily due to the non-cash write-off of deferred contract acquisition costs associated with the termination of management agreements (discussed more fully later in this report in the “CTF Holdings Ltd. ” discussion under the “Investing Activities Cash Flows” caption in the “Liquidity and Capital Resources” section), and $30 million of pre-tax expenses associated with our bedding incentive program, impacting our Full-Service, Select-Service and Extended-Stay Lodging segments. We implemented the bedding incentive program in 2005 to ensure that guests could enjoy the comfort and luxury of our new bedding by year-end 2005. General and administrative expenses in 2005 also reflect pre-tax performance termination cure payments of $15 million associated with two properties, a $9 million pre-tax charge associated with three guarantees, increased other net overhead costs of $13 million including costs related to the Company’s unit growth, development and systems, and $2 million of increased foreign exchange losses partially offset by $5 million of lower litigation expenses. Additionally, in 2004, general and administrative expenses included a $13 million charge associated with the write-off of deferred contract acquisition costs. Operating income for 2005 includes a synthetic fuel operating loss of $144 million versus $98 million of operating losses in the prior year, reflecting increased costs and the consolidation of our synthetic fuel operations from the start of the 2004 second quarter, which resulted in the recognition of revenue and expenses for all of 2005 versus only three quarters in 2004, as we accounted for the synthetic fuel operations using the equity method of accounting in the 2004 first quarter. For additional information, see our “Synthetic Fuel” segment discussion later in this report.2004 COMPARED TO 2003 Operating income increased $100 million to $477 million in 2004 from $377 million in 2003. The increase is primarily due to higher fees, which are related both to stronger RevPAR, driven by increased occupancy and average daily rate, and to the growth in the number of rooms, and strong timeshare results, which are mainly attributable to strong demand and improved margins, partially offset by higher general and administrative expenses. General, administrative and other expenses increased $84 million in 2004 to $607 million from $523 million in 2003, primarily reflecting higher administrative expenses in our Full-Service, Select-Service, and Extended-Stay segments ($55 million) and Timeshare segment ($24 million), primarily associated with increased overhead costs related to the Company’s unit growth and timeshare development, and a $10 million reduction in foreign exchange gains, offset by $6 million of lower litigation expenses. Higher general and administrative expenses of $84 million also reflect a $13 million writeoff of deferred contract acquisition costs as further discussed in the “2004 Compared to 2003” caption under the “Select-Service Lodging” heading later in this report. Gains and Other Income The following table shows our gains and other income for 2005, 2004, and 2003. |
236 | What do all Net income (loss) attributable to noncontrolling interests sum up, excluding those negative ones in 2010 ? (in million) | Sources of Liquidity Primary sources of liquidity for Citigroup and its principal subsidiaries include: ? deposits; ? collateralized financing transactions; ? senior and subordinated debt; ? commercial paper; ? trust preferred and preferred securities; and ? purchased/wholesale funds. Citigroup’s funding sources are diversified across funding types and geography, a benefit of its global franchise. Funding for Citigroup and its major operating subsidiaries includes a geographically diverse retail and corporate deposit base of $774.2 billion. These deposits are diversified across products and regions, with approximately two-thirds of them outside of the U. S. This diversification provides the Company with an important, stable and low-cost source of funding. A significant portion of these deposits has been, and is expected to be, long-term and stable, and are considered to be core. There are qualitative as well as quantitative assessments that determine the Company’s calculation of core deposits. The first step in this process is a qualitative assessment of the deposits. For example, as a result of the Company’s qualitative analysis certain deposits with wholesale funding characteristics are excluded from consideration as core. Deposits that qualify under the Company’s qualitative assessments are then subjected to quantitative analysis. Excluding the impact of changes in foreign exchange rates and the sale of our retail banking operations in Germany during the year ending December 31, 2008, the Company’s deposit base remained stable. On a volume basis, deposit increases were noted in Transaction Services, U. S. Retail Banking and Smith Barney. This was partially offset by the Company’s decision to reduce deposits considered wholesale funding, consistent with the Company’s de-leveraging efforts, and declines in International Consumer Banking and the Private Bank. Citigroup and its subsidiaries have historically had a significant presence in the global capital markets. The Company’s capital markets funding activities have been primarily undertaken by two legal entities: (i) Citigroup Inc. , which issues long-term debt, medium-term notes, trust preferred securities, and preferred and common stock; and (ii) Citigroup Funding Inc. (CFI), a first-tier subsidiary of Citigroup, which issues commercial paper, medium-term notes and structured equity-linked and credit-linked notes, all of which are guaranteed by Citigroup. Other significant elements of longterm debt on the Consolidated Balance Sheet include collateralized advances from the Federal Home Loan Bank system, long-term debt related to the consolidation of ICG’s Structured Investment Vehicles, asset-backed outstandings, and certain borrowings of foreign subsidiaries. Each of Citigroup’s major operating subsidiaries finances its operations on a basis consistent with its capitalization, regulatory structure and the environment in which it operates. Particular attention is paid to those businesses that for tax, sovereign risk, or regulatory reasons cannot be freely and readily funded in the international markets. Citigroup’s borrowings have historically been diversified by geography, investor, instrument and currency. Decisions regarding the ultimate currency and interest rate profile of liquidity generated through these borrowings can be separated from the actual issuance through the use of derivative instruments. Citigroup is a provider of liquidity facilities to the commercial paper programs of the two primary Credit Card securitization trusts with which it transacts. Citigroup may also provide other types of support to the trusts. As a result of the recent economic downturn, its impact on the cashflows of the trusts, and in response to credit rating agency reviews of the trusts, the Company increased the credit enhancement in the Omni Trust, and plans to provide additional enhancement to the Master Trust (see Note 23 to Consolidated Financial Statements on page 175 for a further discussion). This support preserves investor sponsorship of our card securitization franchise, an important source of liquidity. Banking Subsidiaries There are various legal limitations on the ability of Citigroup’s subsidiary depository institutions to extend credit, pay dividends or otherwise supply funds to Citigroup and its non-bank subsidiaries. The approval of the Office of the Comptroller of the Currency, in the case of national banks, or the Office of Thrift Supervision, in the case of federal savings banks, is required if total dividends declared in any calendar year exceed amounts specified by the applicable agency’s regulations. State-chartered depository institutions are subject to dividend limitations imposed by applicable state law. In determining the declaration of dividends, each depository institution must also consider its effect on applicable risk-based capital and leverage ratio requirements, as well as policy statements of the federal regulatory agencies that indicate that banking organizations should generally pay dividends out of current operating earnings. Non-Banking Subsidiaries Citigroup also receives dividends from its non-bank subsidiaries. These non-bank subsidiaries are generally not subject to regulatory restrictions on dividends. However, as discussed in “Capital Resources and Liquidity” on page 94, the ability of CGMHI to declare dividends can be restricted by capital considerations of its broker-dealer subsidiaries. CGMHI’s consolidated balance sheet is liquid, with the vast majority of its assets consisting of marketable securities and collateralized short-term financing agreements arising from securities transactions. CGMHI monitors and evaluates the adequacy of its capital and borrowing base on a daily basis to maintain liquidity and to ensure that its capital base supports the regulatory capital requirements of its subsidiaries. Some of Citigroup’s non-bank subsidiaries, including CGMHI, have credit facilities with Citigroup’s subsidiary depository institutions, including Citibank, N. A. Borrowings under these facilities must be secured in accordance with Section 23A of the Federal Reserve Act. There are various legal restrictions on the extent to which a bank holding company and certain of its non-bank subsidiaries can borrow or obtain credit from Citigroup’s subsidiary depository institutions or engage in certain other transactions with them. In general, these restrictions require that transactions be on arm’s length terms and be secured by designated amounts of specified collateral. See Note 20 to the Consolidated Financial Statements on page 169. At December 31, 2008, long-term debt and commercial paper outstanding for Citigroup, CGMHI, CFI and Citigroup’s subsidiaries were as follows:
<table><tr><td><i>In billions of dollars</i></td><td>Citigroup parent company</td><td>CGMHI<sup>-2</sup></td><td>Citigroup Funding Inc.<sup>-2</sup></td><td>Other Citigroup subsidiaries</td><td></td></tr><tr><td>Long-term debt</td><td>$192.3</td><td>$20.6</td><td>$37.4</td><td>$109.3</td><td><sup></sup><sup>-1</sup></td></tr><tr><td>Commercial paper</td><td>$—</td><td>$—</td><td>$28.6</td><td>$0.5</td><td></td></tr></table>
(1) At December 31, 2008, approximately $67.4 billion relates to collateralized advances from the Federal Home Loan Bank. (2) Citigroup Inc. guarantees all of CFI’s debt and CGMHI’s publicly issued securities. Citi Holdings contains businesses and portfolios of assets that Citigroup has determined are not central to its core Citicorp businesses. Consistent with its strategy, Citi intends to exit these businesses as quickly as practicable in an economically rational manner through business divestitures, portfolio run-offs and asset sales. During 2009 and 2010, Citi made substantial progress divesting and exiting businesses from Citi Holdings, having completed more than 30 divestiture transactions, including Smith Barney, Nikko Cordial Securities, Nikko Asset Management, Primerica Financial Services, various credit card businesses (including Diners Club North America) and The Student Loan Corporation (which is reported as discontinued operations within the Corporate/Other segment for the second half of 2010 only). Citi Holdings’ GAAP assets of $359 billion have been reduced by $128 billion from December 31, 2009, and $468 billion from the peak in the first quarter of 2008. Citi Holdings’ GAAP assets of $359 billion represent approximately 19% of Citi’s assets as of December 31, 2010. Citi Holdings’ risk-weighted assets of approximately $330 billion represent approximately 34% of Citi’s risk-weighted assets as of December 31, 2010. Citi Holdings consists of the following: Brokerage and Asset Management, Local Consumer Lending, and Special Asset Pool.
<table><tr><td>In millions of dollars</td><td>2010</td><td>2009</td><td>2008</td><td>% Change 2010 vs. 2009</td><td>% Change 2009 vs. 2008</td></tr><tr><td>Net interest revenue</td><td>$14,773</td><td>$16,139</td><td>$21,092</td><td>-8%</td><td>-23%</td></tr><tr><td>Non-interest revenue</td><td>4,514</td><td>12,989</td><td>-29,330</td><td>-65</td><td>NM</td></tr><tr><td>Total revenues, net of interest expense</td><td>$19,287</td><td>$29,128</td><td>$-8,238</td><td>-34%</td><td>NM</td></tr><tr><td>Provisions for credit losses and for benefits and claims</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net credit losses</td><td>$19,070</td><td>$24,585</td><td>$14,026</td><td>-22%</td><td>75%</td></tr><tr><td>Credit reserve build (release)</td><td>-3,500</td><td>5,305</td><td>11,258</td><td>NM</td><td>-53</td></tr><tr><td>Provision for loan losses</td><td>$15,570</td><td>$29,890</td><td>$25,284</td><td>-48%</td><td>18%</td></tr><tr><td>Provision for benefits and claims</td><td>813</td><td>1,094</td><td>1,228</td><td>-26</td><td>-11</td></tr><tr><td>Provision (release) for unfunded lending commitments</td><td>-82</td><td>106</td><td>-172</td><td>NM</td><td>NM</td></tr><tr><td>Total provisions for credit losses and for benefits and claims</td><td>$16,301</td><td>$31,090</td><td>$26,340</td><td>-48%</td><td>18%</td></tr><tr><td>Total operating expenses</td><td>$9,563</td><td>$13,764</td><td>$24,104</td><td>-31</td><td>-43%</td></tr><tr><td>Loss from continuing operations before taxes</td><td>$-6,577</td><td>$-15,726</td><td>$-58,682</td><td>58%</td><td>73%</td></tr><tr><td>Benefits for income taxes</td><td>-2,554</td><td>-6,878</td><td>-22,185</td><td>63</td><td>69</td></tr><tr><td>(Loss) from continuing operations</td><td>$-4,023</td><td>$-8,848</td><td>$-36,497</td><td>55%</td><td>76%</td></tr><tr><td>Net income (loss) attributable to noncontrolling interests</td><td>207</td><td>29</td><td>-372</td><td>NM</td><td>NM</td></tr><tr><td>Citi Holdings net loss</td><td>$-4,230</td><td>$-8,877</td><td>$-36,125</td><td>52%</td><td>75%</td></tr><tr><td>Balance sheet data(in billions of dollars)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total EOP assets</td><td>$359</td><td>$487</td><td>$650</td><td>-26%</td><td>-25%</td></tr><tr><td>Total EOP deposits</td><td>$79</td><td>$89</td><td>$81</td><td>-11%</td><td>10%</td></tr></table>
receipt in 2005, of a $10 million termination fee associated with one property that left our system. The favorable items noted above were also partially offset by $146 million of increased general and administrative expenses and $46 million of lower synthetic fuel revenue net of synthetic fuel expenses. Increased general, administrative and other expenses were associated with our Lodging segments as unallocated general, administrative and other expenses were down slightly compared to the prior year. The increase in general, administrative and other expenses reflects a $94 million charge impacting our North American Full-Service and International Lodging segments, primarily due to the non-cash write-off of deferred contract acquisition costs associated with the termination of management agreements associated with our acquisition of the CTF properties, and $30 million of expenses associated with our bedding incentive program, impacting our North American Full-Service, North American Limited-Service and International Lodging segments. General, administrative and other expenses in 2005 also reflect pre-tax performance termination cure payments of $15 million associated with two properties, a $9 million pre-tax charge associated with three guarantees, increased other net overhead costs of $13 million including costs related to the Company’s unit growth, development and systems, and $2 million of increased foreign exchange losses partially offset by $5 million of lower litigation expenses. Additionally, in 2004, general, administrative and other expenses included a $13 million charge associated with the write-off of deferred contract acquisition costs. Operating income for 2005 included a synthetic fuel operating loss of $144 million versus a $98 million operating loss in the prior year, reflecting increased costs and the consolidation of our synthetic fuel operations from the start of the 2004 second quarter, which resulted in the recognition of revenue and expenses for all of 2005 versus only three quarters in 2004, as we accounted for the synthetic fuel operations using the equity method of accounting in the 2004 first quarter. For additional information, see our “Synthetic Fuel” segment discussion later in this report. Gains and Other Income The following table shows our gains and other income for 2006, 2005 and 2004.
<table><tr><td> <i>($ in millions)</i></td><td>2006</td><td> 2005</td><td> 2004</td></tr><tr><td>Timeshare segment note sale gains</td><td>$—</td><td>$69</td><td>$64</td></tr><tr><td>Synthetic fuel earn-out payments (made) received, net</td><td>-15</td><td>32</td><td>28</td></tr><tr><td>Loss on expected land sale</td><td>-37</td><td>—</td><td>—</td></tr><tr><td>Gains on sales of real estate and other</td><td>26</td><td>34</td><td>48</td></tr><tr><td>Other note sale/repayment gains</td><td>2</td><td>25</td><td>5</td></tr><tr><td>Gains on sale/income on redemption of joint venture investments</td><td>68</td><td>7</td><td>19</td></tr><tr><td>Income from cost method joint ventures</td><td>15</td><td>14</td><td>—</td></tr><tr><td></td><td>$59</td><td>$181</td><td>$164</td></tr></table>
Gains on sale/income on redemption of joint venture investments of $68 million in 2006 represents $43 million of net gains associated with the sale of joint venture investments and $25 million of income associated with the redemption of preferred stock we held in one investee. As further explained in the earlier “Revenues” discussion for 2006, Timeshare segment note sale gains of $77 million in 2006 are presented in the “Timeshare sales and services” revenue caption. Interest Expense 2006 COMPARED TO 2005 Interest expense increased $18 million (17 percent) to $124 million in 2006 from $106 million in 2005. Included within interest expense for 2006 are charges totaling $46 million relating to interest on accumulated cash inflows, in advance of our cash outflows for various programs that we operate on the owners’ behalf, including the Marriott Rewards, Gift Certificates and SelfInsurance programs. The increase in interest on these programs over 2005 is related to higher liability balances and higher interest rates. Interest expense also increased in 2006, due to our June 2005 Series F Notes issuance, our June 2006 Series H Notes issuance, and higher commercial paper balances coupled with higher rates. Partially offsetting these increases were interest expense declines associated with the payoff, at maturity, of both our Series D Notes in April 2005 and Series B Notes in November 2005, and the exchange of our Series C and Series E Notes for lower interest rate Series G Notes in 2005.2005 COMPARED TO 2004 Interest expense increased $7 million (7 percent) to $106 million in 2005 from $99 million in the prior year, reflecting increased debt levels, which helped to facilitate significantly higher capital expenditures and share repurchases in 2005. Interest expense in 2005 reflected our June 2005 Series F Notes issuance and, versus the prior year, higher commercial paper balances coupled with higher rates. Included within interest expense for 2005 are charges totaling $29 million relating to interest on accumulated cash inflows, in advance of our cash outflows for various programs that we operate on the owners’ behalf, including the Marriott Rewards, Gift Certificates and Self-Insurance programs. The increase over 2004 is related to higher liability balances and higher interest rates. Partially offsetting these increases were interest expense declines associated with the payoff, at maturity, of both our Series D Notes in April 2005 and Series B Notes in November 2005, and the capitalization of more interest associated with the development of timeshare properties. Interest Income, Provision for Loan Losses, and Income Tax 2006 COMPARED TO 2005 Interest income, before the provision for loan losses, decreased $34 million (43 percent) to $45 million in 2006 from $79 million in 2005, primarily reflecting the impact of loans repaid to us in 2005. Also reflected in the decrease versus the prior year are $4 million of mark-to-market expenses in 2006 associated with hedges for our synthetic fuel operations. Loan loss provisions decreased $31 million versus the prior year reflecting the reversal of loan loss provisions totaling $3 million in 2006 compared to a charge of $17 million in 2005 due to the impairment of our Delta Air Lines, Inc. aircraft leveraged lease, see the “Investment in Leveraged Lease” caption later in this report for additional information, and an $11 million loan loss provision in 2005 associated with one property. Our tax provision totaled $286 million in 2006 compared to a tax provision of $94 million in 2005. The difference of $192 million is primarily attributable to $96 million of higher taxes in 2006 associated with higher pre-tax income from our lodging operations and $96 million of lower tax credits and tax benefit in 2006 associated with our synthetic fuel operations that generated a net tax benefit of $94 million in 2006 compared to a net tax benefit of $190 million in 2005. As discussed in more detail in the “Synthetic Fuel” segment caption later in this report, 2006 includes a provision for an estimated 39 percent |
-0.83678 | considering the years 2015-2016 , what was the decrease observed in the expense for severance and other benefits? | As of 30 September 2016 and 2015, there were no assets or liabilities classified as discontinued operations relating to the Homecare business.5. BUSINESS RESTRUCTURING AND COST REDUCTION ACTIONS The charges we record for business restructuring and cost reduction actions have been excluded from segment operating income. Cost Reduction Actions In fiscal year 2016, we recognized an expense of $33.9 ($24.0 after-tax, or $.11 per share) for severance and other benefits related to cost reduction actions which resulted in the elimination of approximately 700 positions. The expenses related primarily to the Industrial Gases – Americas and the Industrial Gases – EMEA segments. The following table summarizes the carrying amount of the accrual for cost reduction actions at 30 September 2016:
<table><tr><td></td><td>Severance and Other Benefits</td></tr><tr><td>2016 Charge</td><td>$33.9</td></tr><tr><td>Amount reflected in pension liability</td><td>-.9</td></tr><tr><td>Cash expenditures</td><td>-20.4</td></tr><tr><td>Currency translation adjustment</td><td>.3</td></tr><tr><td>30 September 2016</td><td>$12.9</td></tr></table>
Business Realignment and Reorganization On 18 September 2014, we announced plans to reorganize the Company, including realignment of our businesses in new reporting segments and other organizational changes, effective as of 1 October 2014. As a result of this reorganization, we incurred severance and other charges. In fiscal year 2015, we recognized an expense of $207.7 ($153.2 after-tax, or $.71 per share). Severance and other benefits totaled $151.9 and related to the elimination of approximately 2,000 positions. Asset and associated contract actions totaled $55.8 and related primarily to a plant shutdown in the Corporate and other segment and the exit of product lines within the Industrial Gases – Global and Materials Technologies segments. The 2015 charges related to the segments as follows: $31.7 in Industrial Gases – Americas, $52.2 in Industrial Gases – EMEA, $10.3 in Industrial Gases – Asia, $37.0 in Industrial Gases – Global, $27.6 in Materials Technologies, and $48.9 in Corporate and other. During the fourth quarter of 2014, an expense of $12.7 ($8.2 after-tax, or $.04 per share) was incurred relating to the elimination of approximately 50 positions. The 2014 charge related to the segments as follows: $2.9 in Industrial Gases – Americas, $3.1 in Industrial Gases – EMEA, $1.5 in Industrial Gases – Asia, $1.5 in Industrial Gases – Global, $1.6 in Materials Technologies, and $2.1 in Corporate and other. Table V Allowance for Credit Losses
<table><tr><td>(Dollars in millions)</td><td>2015</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Allowance for loan and lease losses, January 1</td><td>$14,419</td><td>$17,428</td><td>$24,179</td><td>$33,783</td><td>$41,885</td></tr><tr><td>Loans and leases charged off</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential mortgage</td><td>-866</td><td>-855</td><td>-1,508</td><td>-3,276</td><td>-4,294</td></tr><tr><td>Home equity</td><td>-975</td><td>-1,364</td><td>-2,258</td><td>-4,573</td><td>-4,997</td></tr><tr><td>U.S. credit card</td><td>-2,738</td><td>-3,068</td><td>-4,004</td><td>-5,360</td><td>-8,114</td></tr><tr><td>Non-U.S. credit card</td><td>-275</td><td>-357</td><td>-508</td><td>-835</td><td>-1,691</td></tr><tr><td>Direct/Indirect consumer</td><td>-383</td><td>-456</td><td>-710</td><td>-1,258</td><td>-2,190</td></tr><tr><td>Other consumer</td><td>-224</td><td>-268</td><td>-273</td><td>-274</td><td>-252</td></tr><tr><td>Total consumer charge-offs</td><td>-5,461</td><td>-6,368</td><td>-9,261</td><td>-15,576</td><td>-21,538</td></tr><tr><td>U.S. commercial<sup>-1</sup></td><td>-536</td><td>-584</td><td>-774</td><td>-1,309</td><td>-1,690</td></tr><tr><td>Commercial real estate</td><td>-30</td><td>-29</td><td>-251</td><td>-719</td><td>-1,298</td></tr><tr><td>Commercial lease financing</td><td>-19</td><td>-10</td><td>-4</td><td>-32</td><td>-61</td></tr><tr><td>Non-U.S. commercial</td><td>-59</td><td>-35</td><td>-79</td><td>-36</td><td>-155</td></tr><tr><td>Total commercial charge-offs</td><td>-644</td><td>-658</td><td>-1,108</td><td>-2,096</td><td>-3,204</td></tr><tr><td>Total loans and leases charged off</td><td>-6,105</td><td>-7,026</td><td>-10,369</td><td>-17,672</td><td>-24,742</td></tr><tr><td>Recoveries of loans and leases previously charged off</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential mortgage</td><td>393</td><td>969</td><td>424</td><td>165</td><td>377</td></tr><tr><td>Home equity</td><td>339</td><td>457</td><td>455</td><td>331</td><td>517</td></tr><tr><td>U.S. credit card</td><td>424</td><td>430</td><td>628</td><td>728</td><td>838</td></tr><tr><td>Non-U.S. credit card</td><td>87</td><td>115</td><td>109</td><td>254</td><td>522</td></tr><tr><td>Direct/Indirect consumer</td><td>271</td><td>287</td><td>365</td><td>495</td><td>714</td></tr><tr><td>Other consumer</td><td>31</td><td>39</td><td>39</td><td>42</td><td>50</td></tr><tr><td>Total consumer recoveries</td><td>1,545</td><td>2,297</td><td>2,020</td><td>2,015</td><td>3,018</td></tr><tr><td>U.S. commercial<sup>-2</sup></td><td>172</td><td>214</td><td>287</td><td>368</td><td>500</td></tr><tr><td>Commercial real estate</td><td>35</td><td>112</td><td>102</td><td>335</td><td>351</td></tr><tr><td>Commercial lease financing</td><td>10</td><td>19</td><td>29</td><td>38</td><td>37</td></tr><tr><td>Non-U.S. commercial</td><td>5</td><td>1</td><td>34</td><td>8</td><td>3</td></tr><tr><td>Total commercial recoveries</td><td>222</td><td>346</td><td>452</td><td>749</td><td>891</td></tr><tr><td>Total recoveries of loans and leases previously charged off</td><td>1,767</td><td>2,643</td><td>2,472</td><td>2,764</td><td>3,909</td></tr><tr><td>Net charge-offs</td><td>-4,338</td><td>-4,383</td><td>-7,897</td><td>-14,908</td><td>-20,833</td></tr><tr><td>Write-offs of PCI loans</td><td>-808</td><td>-810</td><td>-2,336</td><td>-2,820</td><td>—</td></tr><tr><td>Provision for loan and lease losses</td><td>3,043</td><td>2,231</td><td>3,574</td><td>8,310</td><td>13,629</td></tr><tr><td>Other<sup>-3</sup></td><td>-82</td><td>-47</td><td>-92</td><td>-186</td><td>-898</td></tr><tr><td>Allowance for loan and lease losses, December 31</td><td>12,234</td><td>14,419</td><td>17,428</td><td>24,179</td><td>33,783</td></tr><tr><td>Reserve for unfunded lending commitments, January 1</td><td>528</td><td>484</td><td>513</td><td>714</td><td>1,188</td></tr><tr><td>Provision for unfunded lending commitments</td><td>118</td><td>44</td><td>-18</td><td>-141</td><td>-219</td></tr><tr><td>Other<sup>-4</sup></td><td>—</td><td>—</td><td>-11</td><td>-60</td><td>-255</td></tr><tr><td>Reserve for unfunded lending commitments, December 31</td><td>646</td><td>528</td><td>484</td><td>513</td><td>714</td></tr><tr><td>Allowance for credit losses, December 31</td><td>$12,880</td><td>$14,947</td><td>$17,912</td><td>$24,692</td><td>$34,497</td></tr></table>
(1) Includes U. S. small business commercial charge-offs of $282 million, $345 million, $457 million, $799 million and $1.1 billion in 2015, 2014, 2013, 2012 and 2011, respectively. (2) Includes U. S. small business commercial recoveries of $57 million, $63 million, $98 million, $100 million and $106 million in 2015, 2014, 2013, 2012 and 2011, respectively. (3) Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments. In addition, the 2011 amount includes a $449 million reduction in the allowance for loan and lease losses related to Canadian consumer card loans that were transferred to LHFS. (4) Primarily represents accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions. NOTE 6 ACQUISITIONS AND JOINT VENTURES OLMUKSAN 2014: In May 2014, the Company conducted a voluntary tender offer for the remaining outstanding 12.6% public shares of Olmuksan. The Company also purchased outstanding shares of Olmuksan outside of the tender offer. As of December 31, 2014 and 2015, the Company owned 91.7% of Olmuksan's outstanding and issued shares.2013: On January 3, 2013, International Paper completed the acquisition (effective date of acquisition on January 1, 2013) of the shares of its joint venture partner, Sabanci Holding, in the Turkish corrugated packaging company, Olmuksa International Paper Sabanci Ambalaj Sanayi ve Ticaret A. S. , now called Olmuksan International Paper Ambalaj Sanayi ve Ticaret A. S. (Olmuksan), for a purchase price of $56 million. The acquired shares represented 43.7% of Olmuksan's shares. Prior to this acquisition, International Paper held a 43.7% equity interest in Olmuksan. Because the transaction resulted in International Paper becoming the majority shareholder, owning 87.4% of Olmuksan's outstanding and issued shares, its completion triggered a mandatory call for tender of the remaining public shares which began in March 2013 and ended in April 2013, with no shares tendered. As a result, the 12.6% owned by other parties were considered non-controlling interests. Olmuksan's financial results have been consolidated with the Company's Industrial Packaging segment beginning January 1, 2013, the effective date which International Paper obtained majority control of the entity. Following the transaction, the Company's previously held 43.7% equity interest in Olmuksan was remeasured to a fair value of $75 million, resulting in a gain of $9 million. In addition, the cumulative translation adjustment balance of $17 million relating to the previously held equity interest was reclassified, as expense, from accumulated other comprehensive income. The final purchase price allocation indicated that the sum of the cash consideration paid, the fair value of the noncontrolling interest and the fair value of the previously held interest was less than the fair value of the underlying assets by $21 million, resulting in a bargain purchase price gain being recorded on this transaction. The aforementioned remeasurement of equity interest gain, the cumulative translation adjustment to expense, and the bargain purchase gain are included in the Net bargain purchase gain on acquisition of business in the accompanying consolidated statement of operations. The following table summarizes the final allocation of the purchase price to the fair value of assets and liabilities acquired as of January 1, 2013, which was completed in the fourth quarter of 2013.
<table><tr><td>Cash and temporary investments</td><td>$5</td></tr><tr><td>Accounts and notes receivable</td><td>72</td></tr><tr><td>Inventory</td><td>31</td></tr><tr><td>Other current assets</td><td>2</td></tr><tr><td>Plants, properties and equipment</td><td>106</td></tr><tr><td>Investments</td><td>11</td></tr><tr><td>Total assets acquired</td><td>227</td></tr><tr><td>Notes payable and current maturities of long-term debt</td><td>17</td></tr><tr><td>Accounts payable and accrued liabilities</td><td>27</td></tr><tr><td>Deferred income tax liability</td><td>4</td></tr><tr><td>Postretirement and postemployment benefit obligation</td><td>6</td></tr><tr><td>Total liabilities assumed</td><td>54</td></tr><tr><td>Noncontrolling interest</td><td>18</td></tr><tr><td>Net assets acquired</td><td>$155</td></tr></table>
Pro forma information related to the acquisition of Olmuksan has not been included as it does not have a material effect on the Company's consolidated results of operations. ORSA 2014: On April 8, 2014, the Company acquired the remaining 25% of shares of Orsa International Paper Embalangens S. A. (Orsa IP) from its joint venture partner, Jari Celulose, Papel e Embalagens S. A. (Jari), a Grupo Orsa company, for approximately $127 million, of which $105 million was paid in cash with the remaining $22 million held back pending satisfaction of certain indemnification obligations by Jari. International Paper will release the amount held back, or any amount for which we have not notified Jari of a claim, by March 30, 2016. An additional $11 million, which was not included in the purchase price, was placed in an escrow account pending resolution of certain open matters. During 2014, these open matters were successfully resolved, which resulted in $9 million paid out of escrow to Jari and correspondingly added to the final purchase consideration. The remaining $2 million was released back to the Company. As a result of this transaction, the Company reversed the $168 million of Redeemable noncontrolling interest included on the March 31, 2014 consolidated balance sheet. The net difference between the Redeemable noncontrolling interest balance plus $14 million of currency translation adjustment reclassified out of Other comprehensive income less the 25% purchase price was reflected as an increase to Retained earnings on the consolidated balance sheet. |
0.03759 | for the quarter ended december 31 , 2018 what was the percent of shares withheld to provide funds for the payment of payroll and income taxes in december | PART II Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on the New York Stock Exchange under the trading symbol “HFC. ” In September 2018, our Board of Directors approved a $1 billion share repurchase program, which replaced all existing share repurchase programs, authorizing us to repurchase common stock in the open market or through privately negotiated transactions. The timing and amount of stock repurchases will depend on market conditions and corporate, regulatory and other relevant considerations. This program may be discontinued at any time by the Board of Directors. The following table includes repurchases made under this program during the fourth quarter of 2018.
<table><tr><td>Period</td><td>Total Number ofShares Purchased</td><td>Average PricePaid Per Share</td><td>Total Number ofShares Purchasedas Part of Publicly Announced Plans or Programs</td><td>Maximum DollarValue of Sharesthat May Yet BePurchased under the Plans or Programs</td></tr><tr><td>October 2018</td><td>1,360,987</td><td>$66.34</td><td>1,360,987</td><td>$859,039,458</td></tr><tr><td>November 2018</td><td>450,000</td><td>$61.36</td><td>450,000</td><td>$831,427,985</td></tr><tr><td>December 2018</td><td>912,360</td><td>$53.93</td><td>810,000</td><td>$787,613,605</td></tr><tr><td>Total for October to December 2018</td><td>2,723,347</td><td></td><td>2,620,987</td><td></td></tr></table>
During the quarter ended December 31, 2018, 102,360 shares were withheld from certain executives and employees under the terms of our share-based compensation agreements to provide funds for the payment of payroll and income taxes due at vesting of restricted stock awards. As of February 13, 2019, we had approximately 97,419 stockholders, including beneficial owners holding shares in street name. We intend to consider the declaration of a dividend on a quarterly basis, although there is no assurance as to future dividends since they are dependent upon future earnings, capital requirements, our financial condition and other factors.
<table><tr><td></td><td>2015</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td></td><td colspan="5">(In millions, except per share data)</td></tr><tr><td>COMMON STOCK DATA</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash dividends declared per common share</td><td>$0.23</td><td>$0.18</td><td>$0.10</td><td>$0.04</td><td>$0.04</td></tr><tr><td>Common equity book value per share</td><td>12.35</td><td>11.81</td><td>11.04</td><td>10.57</td><td>10.33</td></tr><tr><td>Tangible common book value per share (non-GAAP)<sup>(1)</sup></td><td>8.52</td><td>8.18</td><td>7.47</td><td>7.05</td><td>6.31</td></tr><tr><td>Market value at year-end</td><td>9.60</td><td>10.56</td><td>9.89</td><td>7.13</td><td>4.30</td></tr><tr><td>Market price range:<sup>-5</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High</td><td>10.87</td><td>11.54</td><td>10.52</td><td>7.73</td><td>8.09</td></tr><tr><td>Low</td><td>8.54</td><td>8.85</td><td>7.13</td><td>4.21</td><td>2.82</td></tr><tr><td>Total trading volume</td><td>4,243</td><td>3,689</td><td>3,962</td><td>5,282</td><td>5,204</td></tr><tr><td>Dividend payout ratio</td><td>30.76%</td><td>22.80%</td><td>13.31%</td><td>5.59%</td><td>NM</td></tr><tr><td>Stockholders of record at year-end (actual)</td><td>51,270</td><td>57,529</td><td>63,815</td><td>67,574</td><td>73,659</td></tr><tr><td>Weighted-average number of common shares outstanding</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>1,325</td><td>1,375</td><td>1,395</td><td>1,381</td><td>1,258</td></tr><tr><td>Diluted</td><td>1,334</td><td>1,387</td><td>1,410</td><td>1,387</td><td>1,258</td></tr></table>
NM—Not meaningful (1) See Table 2 for GAAP to non-GAAP reconciliations. (2) Current year Basel III common equity Tier 1, Tier 1 capital, Total capital, and Leverage capital ratios are estimated. (3) Regions' regulatory capital ratios for years prior to 2015 have not been revised to reflect the retrospective application of new accounting guidance related to investments in qualified affordable housing projects. (4) Beginning in 2015, Regions' regulatory capital ratios are calculated pursuant to the phase-in provisions of the Basel III Rules. All prior period ratios were calculated pursuant to the Basel I capital rules. (5) High and low market prices are based on intraday sales prices. NON-GAAP MEASURES The table below presents computations of earnings and certain other financial measures, which exclude certain significant items that are included in the financial results presented in accordance with GAAP. These non-GAAP financial measures include “adjusted fee income ratio”, “adjusted efficiency ratio”, “return on average tangible common stockholders’ equity”, average and end of period “tangible common stockholders’ equity”, and “Basel III CET1, on a fully phased-in basis” and related ratios. Regions believes that expressing earnings and certain other financial measures excluding these significant items provides a meaningful base for period-to-period comparisons, which management believes will assist investors in analyzing the operating results of the Company and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of Regions’ business because management does not consider the activities related to the adjustments to be indications of ongoing operations. Regions believes that presentation of these non-GAAPfinancial measures will permit investors to assess the performance of the Company on the same basis as that applied by management. Management and the Board utilize these non-GAAP financial measures as follows: ? Preparation of Regions’ operating budgets ? Monthly financial performance reporting ? Monthly close-out reporting of consolidated results (management only) ? Presentations to investors of Company performance The adjusted efficiency ratio (non-GAAP), which is a measure of productivity, is generally calculated as non-interest expense divided by total revenue on a taxable-equivalent basis. The adjusted fee income ratio (non-GAAP) is generally calculated as noninterest income divided by total revenue on a taxable-equivalent basis. Management uses these ratios to monitor performance and believes these measures provide meaningful information to investors. Non-interest expense (GAAP) is presented excluding adjustments to arrive at adjusted non-interest expense (non-GAAP), which is the numerator for the adjusted efficiency ratio. Noninterest income (GAAP) is presented excluding adjustments to arrive at adjusted non-interest income (non-GAAP), which is the numerator for the adjusted fee income ratio. Net interest income and other financing income on a taxable-equivalent basis and noninterest income are added together to arrive at total revenue on a taxable-equivalent basis. Adjustments are made to arrive at adjusted total revenue on a taxable-equivalent basis (non-GAAP), which is the denominator for the adjusted efficiency and adjusted fee income ratios. Tangible common stockholders’ equity ratios have become a focus of some investors in analyzing the capital position of the Company absent the effects of intangible assets and preferred stock. Traditionally, the Federal Reserve and other banking regulatory bodies have assessed a bank’s capital adequacy based on Tier 1 capital, the calculation of which is codified in federal banking regulations. Analysts and banking regulators have assessed Regions’ capital adequacy using the tangible common stockholders’ Table of Contents 75 Other Assets Other assets decreased $92 million to $5.9 billion as of December 31, 2015. Timing differences between settlement and trade date accounting primarily drove the decrease. The decrease was offset by increases in the cash surrender value of investments in bank-owned life insurance and additional investments in affordable housing. Deposits Regions competes with other banking and financial services companies for a share of the deposit market. Regions’ ability to compete in the deposit market depends heavily on the pricing of its deposits and how effectively the Company meets customers’ needs. Regions employs various means to meet those needs and enhance competitiveness, such as providing a high level of customer service, competitive pricing and providing convenient branch locations for its customers. Regions also serves customers through providing centralized, high-quality banking services and alternative product delivery channels such as internet banking. Deposits are Regions’ primary source of funds, providing funding for 90 percent of average earning assets in both 2015 and 2014. Table 21 “Deposits” details year-over-year deposits on a period-ending basis. Total deposits at December 31, 2015 increased approximately $4.2 billion compared to year-end 2014 levels. The increase in deposits was primarily driven by increases in noninterest-bearing demand, interest-bearing transaction and money market accounts. These increases were partially offset by continued declines in time deposits. Due to liquidity in the market, Regions has been able to steadily grow its low-cost customer deposits and reduce its total deposit costs from 15 basis points in 2013 to 11 basis points in both 2014 and 2015. The following table summarizes deposits by category as of December 31: Table 21—Deposits
<table><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(In millions)</td></tr><tr><td>Non-interest-bearing demand</td><td>$34,862</td><td>$31,747</td><td>$30,083</td></tr><tr><td>Savings</td><td>7,287</td><td>6,653</td><td>6,250</td></tr><tr><td>Interest-bearing transaction</td><td>21,902</td><td>21,544</td><td>20,789</td></tr><tr><td>Money market—domestic</td><td>26,468</td><td>25,396</td><td>25,435</td></tr><tr><td>Money market—foreign</td><td>243</td><td>265</td><td>220</td></tr><tr><td>Low-cost deposits</td><td>90,762</td><td>85,605</td><td>82,777</td></tr><tr><td>Time deposits</td><td>7,468</td><td>8,595</td><td>9,608</td></tr><tr><td>Customer deposits</td><td>98,230</td><td>94,200</td><td>92,385</td></tr><tr><td>Corporate treasury time deposits</td><td>200</td><td>—</td><td>68</td></tr><tr><td></td><td>$98,430</td><td>$94,200</td><td>$92,453</td></tr></table>
Within customer deposits, non-interest-bearing demand deposits increased $3.1 billion to $34.9 billion. Non-interest-bearing deposits accounted for approximately 35 percent of total deposits at year-end 2015 compared to 34 percent at year-end 2014. Savings balances increased $634 million to $7.3 billion, generally reflecting continued consumer savings trends, spurred by economic uncertainty. Interest-bearing transaction accounts increased $358 million to $21.9 billion. Interest-bearing transaction deposits accounted for approximately 22 percent and 23 percent of total deposits at year-end 2015 and 2014, respectively. Domestic money market products, which exclude foreign money market accounts, are one of Regions’ most significant funding sources. These balances accounted for 27 percent of total deposits in both 2015 and 2014. Included in customer time deposits are certificates of deposit and individual retirement accounts. The balance of customer time deposits decreased 13 percent in 2015 to $7.5 billion compared to $8.6 billion in 2014. The decrease was primarily due to maturities with minimal reinvestment by customers as a result of the continued decline in interest rates offered on these products. Customer time deposits accounted for 8 percent of total deposits in 2015 compared to 9 percent in 2014. See Table 22 “Maturity of Time Deposits of $100,000 or More” for maturity information. During 2015, corporate treasury deposits remained at low levels as the Company continued to utilize customer-based funding and other sources. The sensitivity of Regions’ deposit rates to changes in market interest rates is reflected in Regions’ average interest rate paid on interest-bearing deposits. The rate paid on interest-bearing deposits remained consistent at 0.17 percent in 2015 compared to 2014, driven by the expiration of time deposits, the positive mix shift to lower cost customer products, and continuation of the low interest rate environment throughout much of 2015. Table of Contents 77 Ratings Table 23 “Credit Ratings” reflects the debt ratings information of Regions Financial Corporation and Regions Bank by Standard and Poor's ("S&P"), Moody’s, Fitch and Dominion Bond Rating Service ("DBRS") as of December 31, 2015 and 2014. Table 23—Credit Ratings
<table><tr><td></td><td colspan="4">As of December 31, 2015</td></tr><tr><td></td><td>S&P</td><td>Moody’s</td><td>Fitch</td><td>DBRS</td></tr><tr><td>Regions Financial Corporation</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior notes</td><td>BBB</td><td>Baa3</td><td>BBB</td><td>BBB</td></tr><tr><td>Subordinated notes</td><td>BBB-</td><td>Baa3</td><td>BBB-</td><td>BBBL</td></tr><tr><td>Regions Bank</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-term debt</td><td>A-2</td><td>P-2</td><td>F2</td><td>R-1L</td></tr><tr><td>Long-term bank deposits<sup>-1</sup></td><td>N/A</td><td>A3</td><td>BBB+</td><td>BBBH</td></tr><tr><td>Long-term debt</td><td>BBB+</td><td>A3</td><td>BBB</td><td>BBBH</td></tr><tr><td>Subordinated debt</td><td>BBB</td><td>Baa3</td><td>BBB-</td><td>BBB</td></tr><tr><td>Outlook</td><td>Stable</td><td>Stable</td><td>Stable</td><td>Positive</td></tr></table> |
2,699 | In the year with largest amount of Interest rate what's the sum of Equity and Credit derivatives for Notional amounts? (in billion) | Management’s discussion and analysis JPMorgan Chase & Co The following table summarizes the aggregate notional amounts and the reported derivative receivables (i. e. , the MTM or fair value of the derivative contracts after taking into account the effects of legally enforceable master netting agreements) at each of the dates indicated: Notional amounts and derivative receivables marked to market (“MTM”)
<table><tr><td>As of December 31,</td><td colspan="2">Notional amounts<sup>(a)</sup></td><td colspan="2">Derivative receivables MTM</td></tr><tr><td>(in billions)</td><td> 2005</td><td>2004</td><td>2005</td><td>2004</td></tr><tr><td>Interest rate</td><td>$38,493</td><td>$37,022</td><td>$30</td><td>$46</td></tr><tr><td>Foreign exchange</td><td>2,136</td><td>1,886</td><td>3</td><td>8</td></tr><tr><td>Equity</td><td>458</td><td>434</td><td>6</td><td>6</td></tr><tr><td>Credit derivatives</td><td>2,241</td><td>1,071</td><td>4</td><td>3</td></tr><tr><td>Commodity</td><td>265</td><td>101</td><td>7</td><td>3</td></tr><tr><td>Total</td><td>$43,593</td><td>$40,514</td><td>50</td><td>66</td></tr><tr><td>Collateral held againstderivative receivables</td><td> NA</td><td>NA</td><td>-6</td><td>-9</td></tr><tr><td>Exposure net of collateral</td><td> NA</td><td>NA</td><td>$44(b)</td><td>$57(c)</td></tr></table>
(a) The notional amounts represent the gross sum of long and short third-party notional derivative contracts, excluding written options and foreign exchange spot contracts, which significantly exceed the possible credit losses that could arise from such transactions. For most derivative transactions, the notional principal amount does not change hands; it is used simply as a reference to calculate payments. (b) The Firm held $33 billion of collateral against derivative receivables as of December 31, 2005, consisting of $27 billion in net cash received under credit support annexes to legally enforceable master netting agreements, and $6 billion of other liquid securities collateral. The benefit of the $27 billion is reflected within the $50 billion of derivative receivables MTM. Excluded from the $33 billion of collateral is $10 billion of collateral delivered by clients at the initiation of transactions; this collateral secures exposure that could arise in the derivatives portfolio should the MTM of the client’s transactions move in the Firm’s favor. Also excluded are credit enhancements in the form of letters of credit and surety receivables. (c) The Firm held $41 billion of collateral against derivative receivables as of December 31, 2004, consisting of $32 billion in net cash received under credit support annexes to legally enforceable master netting agreements, and $9 billion of other liquid securities collateral. The benefit of the $32 billion is reflected within the $66 billion of derivative receivables MTM. Excluded from the $41 billion of collateral is $10 billion of collateral delivered by clients at the initiation of transactions; this collateral secures exposure that could arise in the derivatives portfolio should the MTM of the client’s transactions move in the Firm’s favor. Also excluded are credit enhancements in the form of letters of credit and surety receivables. The MTM of derivative receivables contracts represents the cost to replace the contracts at current market rates should the counterparty default. When JPMorgan Chase has more than one transaction outstanding with a counterparty, and a legally enforceable master netting agreement exists with that counterparty, the netted MTM exposure, less collateral held, represents, in the Firm’s view, the appropriate measure of current credit risk. While useful as a current view of credit exposure, the net MTM value of the derivative receivables does not capture the potential future variability of that credit exposure. To capture the potential future variability of credit exposure, the Firm calculates, on a client-by-client basis, three measures of potential derivatives-related credit loss: Peak, Derivative Risk Equivalent (“DRE”) and Average exposure (“AVG”). These measures all incorporate netting and collateral benefits, where applicable. Peak exposure to a counterparty is an extreme measure of exposure calculated at a 97.5% confidence level. However, the total potential future credit risk embedded in the Firm’s derivatives portfolio is not the simple sum of all Peak client credit risks. This is because, at the portfolio level, credit risk is reduced by the fact that when offsetting transactions are done with separate counterparties, only one of the two trades can generate a credit loss, even if both counterparties were to default simultaneously. The Firm refers to this effect as market diversification, and the Market-Diversified Peak (“MDP”) measure is a portfolio aggregation of counterparty Peak measures, representing the maximum losses at the 97.5% confidence level that would occur if all counterparties defaulted under any one given market scenario and time frame. Derivative Risk Equivalent (“DRE”) exposure is a measure that expresses the riskiness of derivative exposure on a basis intended to be equivalent to the riskiness of loan exposures. The measurement is done by equating the unexpected loss in a derivative counterparty exposure (which takes into consideration both the loss volatility and the credit rating of the counterparty) with the unexpected loss in a loan exposure (which takes into consideration only the credit rating of the counterparty). DRE is a less extreme measure of potential credit loss than Peak and is the primary measure used by the Firm for credit approval of derivative transactions. Finally, Average exposure (“AVG”) is a measure of the expected MTM value of the Firm’s derivative receivables at future time periods, including the benefit of collateral. AVG exposure over the total life of the derivative contract is used as the primary metric for pricing purposes and is used to calculate credit capital and the Credit Valuation Adjustment (“CVA”), as further described below. Average exposure was $36 billion and $38 billion at December 31, 2005 and 2004, respectively, compared with derivative receivables MTM net of other highly liquid collateral of $44 billion and $57 billion at December 31, 2005 and 2004, respectively. The graph below shows exposure profiles to derivatives over the next 10 years as calculated by the MDP, DRE and AVG metrics. All three measures generally show declining exposure after the first year, if no new trades were added to the portfolio. Notes to consolidated financial statements 210 JPMorgan Chase & Co. /2010 Annual Report Estimated future benefit payments The following table presents benefit payments expected to be paid, which include the effect of expected future service, for the years indicated. The OPEB medical and life insurance payments are net of expected retiree contributions.
<table><tr><td>Year ended December 31,</td><td rowspan="2">U.S. defined benefit pension plans</td><td rowspan="2">Non-U.S. defined benefit pension plans</td><td rowspan="2">OPEB before Medicare Part D subsidy</td><td rowspan="2">Medicare Part D subsidy</td></tr><tr><td>(in millions)</td></tr><tr><td>2011</td><td>$1,001</td><td>$84</td><td>$99</td><td>$10</td></tr><tr><td>2012</td><td>1,011</td><td>92</td><td>97</td><td>11</td></tr><tr><td>2013</td><td>587</td><td>98</td><td>95</td><td>12</td></tr><tr><td>2014</td><td>593</td><td>102</td><td>94</td><td>13</td></tr><tr><td>2015</td><td>592</td><td>111</td><td>92</td><td>14</td></tr><tr><td>Years 2016—2020</td><td>3,013</td><td>640</td><td>418</td><td>78</td></tr></table>
Note 10 – Employee stock-based incentives Employee stock-based awards In 2010, 2009, and 2008, JPMorgan Chase granted long-term stock-based awards to certain key employees under the 2005 LongTerm Incentive Plan (the “2005 Plan”). The 2005 Plan became effective on May 17, 2005, and was amended in May 2008. Under the terms of the amended 2005 plan, as of December 31, 2010, 113 million shares of common stock are available for issuance through May 2013. The amended 2005 Plan is the only active plan under which the Firm is currently granting stock-based incentive awards. In the following discussion, the 2005 Plan, plus prior Firm plans and plans assumed as the result of acquisitions, are referred to collectively as the “LTI Plans,” and such plans constitute the Firm’s stock-based incentive plans. Restricted stock units (“RSUs”) are awarded at no cost to the recipient upon their grant. RSUs are generally granted annually and generally vest at a rate of 50% after two years and 50% after three years and convert into shares of common stock at the vesting date. In addition, RSUs typically include full-career eligibility provisions, which allow employees to continue to vest upon voluntary termination, subject to post-employment and other restrictions based on age or service-related requirements. All of these awards are subject to forfeiture until vested. An RSU entitles the recipient to receive cash payments equivalent to any dividends paid on the underlying common stock during the period the RSU is outstanding and, as such, are considered participating securities as discussed in Note 25 on page 269 of this Annual Report. Under the LTI Plans, stock options and stock appreciation rights (“SARs”) have generally been granted with an exercise price equal to the fair value of JPMorgan Chase’s common stock on the grant date. The Firm typically awards SARs to certain key employees once per year, and it also periodically grants discretionary stock-based incentive awards to individual employees, primarily in the form of both employee stock options and SARs. The 2010, 2009 and 2008 grants of SARs to key employees vest ratably over five years (i. e. , 20% per year). The 2010 grants of SARs contain full-career eligibility provisions; the 2009 and 2008 grants of SARs do not include any full-career eligibility provisions. SARs generally expire 10 years after the grant date. The Firm separately recognizes compensation expense for each tranche of each award as if it were a separate award with its own vesting date. Generally, for each tranche granted, compensation expense is recognized on a straight-line basis from the grant date until the vesting date of the respective tranche, provided that the employees will not become full-career eligible during the vesting period. For awards with full-career eligibility provisions and awards granted with no future substantive service requirement, the Firm accrues the estimated value of awards expected to be awarded to employees as of the grant date without giving consideration to the impact of post-employment restrictions. For each tranche granted to employees who will become full-career eligible during the vesting period, compensation expense is recognized on a straight-line basis from the grant date until the earlier of the employee’s fullcareer eligibility date or the vesting date of the respective tranche. The Firm’s policy for issuing shares upon settlement of employee stock-based incentive awards is to issue either new shares of common stock or treasury shares. During 2010, 2009 and 2008, the Firm settled all of its employee stock-based awards by issuing treasury shares. In January 2008, the Firm awarded to its Chairman and Chief Executive Officer up to 2 million SARs. The terms of this award are distinct from, and more restrictive than, other equity grants regularly awarded by the Firm. The SARs, which have a 10-year term, will become exercisable no earlier than January 22, 2013, and have an exercise price of $39.83. The number of SARs that will become exercisable (ranging from none to the full 2 million) and their exercise date or dates may be determined by the Board of Directors based on an annual assessment of the performance of both the CEO and JPMorgan Chase. The Firm recognizes this award ratably over an assumed five-year service period, subject to a requirement to recognize changes in the fair value of the award through the grant date. The Firm recognized $4 million, $9 million and $1 million in compensation expense in 2010, 2009 and 2008, respectively, for this award. Other-than-temporary impairment The following table presents credit losses that are included in the securities gains and losses table above.
<table><tr><td>Year ended December 31, (in millions)</td><td>2010</td><td>2009</td></tr><tr><td> Debt securities the Firm does not intend tosell that have credit losses</td><td></td><td></td></tr><tr><td>Total other-than-temporary impairmentlosses<sup>(a)</sup></td><td>$-94</td><td>$-946</td></tr><tr><td>Losses recorded in/(reclassified from)other comprehensive income</td><td>-6</td><td>368</td></tr><tr><td> Credit losses recognized in income<sup>(b)(c)</sup></td><td>$-100</td><td>$-578</td></tr></table>
a) For initial OTTI, represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent OTTI of the same security, represents additional declines in fair value subsequent to the previously recorded OTTI, if applicable. (b) Represents the credit loss component of certain prime mortgage-backed securities and obligations of U. S. states and municipalities for 2010, and certain prime and subprime mortgage-backed securities and obligations of U. S. states and municipalities for 2009 that the Firm does not intend to sell. Subsequent credit losses may be recorded on securities without a corresponding further decline in fair value if there has been a decline in expected cash flows. (c) Excluded from this table are OTTI losses of $7 million that were recognized in income in 2009, related to subprime mortgage-backed debt securities the Firm intended to sell. These securities were sold in 2009, resulting in the recognition of a recovery of $1 million. Changes in the credit loss component of credit-impaired debt securities The following table presents a rollforward for the years ended December 31, 2010 and 2009, of the credit loss component of OTTI losses that were recognized in income related to debt securities that the Firm does not intend to sell.
<table><tr><td>Year ended December 31, (in millions)</td><td>2010</td><td>2009</td></tr><tr><td>Balance, beginning of period</td><td>$578</td><td>$—</td></tr><tr><td>Additions:</td><td></td><td></td></tr><tr><td>Newly credit-impaired securities</td><td>—</td><td>578</td></tr><tr><td>Increase in losses on previously credit-impairedsecurities</td><td>94</td><td>—</td></tr><tr><td>Losses reclassified from other comprehensiveincome on previously credit-impaired securities</td><td>6</td><td>—</td></tr><tr><td>Reductions:</td><td></td><td></td></tr><tr><td>Sales of credit-impaired securities</td><td>-31</td><td>—</td></tr><tr><td>Impact of new accounting guidance relatedto VIEs</td><td>-15</td><td>—</td></tr><tr><td> Balance, end of period</td><td>$632</td><td>$578</td></tr></table>
Gross unrealized losses Gross unrealized losses have generally decreased since December 31, 2009, due primarily to market spread improvement and increased liquidity, driving asset prices higher. However, gross unrealized losses on certain securities have increased, including on certain corporate debt securities, which are primarily government-guaranteed positions that experienced credit spread widening. As of December 31, 2010, the Firm does not intend to sell the securities with a loss position in AOCI, and it is not likely that the Firm will be required to sell these securities before recovery of their amortized cost basis. Except for the securities reported in the table above for which credit losses have been recognized in income, the Firm believes that the securities with an unrealized loss in AOCI are not other-than-temporarily impaired as of December 31, 2010. Following is a description of the Firm’s principal security investments with the most significant unrealized losses as of December 31, 2010, and the key assumptions used in the Firm’s estimate of the present value of the cash flows most likely to be collected from these investments. Mortgage-backed securities – Prime and Alt-A nonagency As of December 31, 2010, gross unrealized losses related to prime and Alt-A residential mortgage-backed securities issued by private issuers were $250 million, all of which have been in an unrealized loss position for 12 months or more. Approximately 70% of the total portfolio (by amortized cost) are currently rated below investment-grade; the Firm has recorded other-than-temporary impairment losses on 55% of the below investment-grade positions. In analyzing prime and Alt-A residential mortgage-backed securities for potential credit losses, the Firm utilizes a methodology that focuses on loan-level detail to estimate future cash flows, which are then allocated to the various tranches of the securities. The loanlevel analysis primarily considers current home value, loan-to-value (“LTV”) ratio, loan type and geographical location of the underlying property to forecast prepayment, home price, default rate and loss severity. The forecasted weighted average underlying default rate on the positions was 21% and the related weighted average loss severity was 50%. Based on this analysis, an OTTI loss of $6 million was recognized in 2010 related to securities that experienced increased delinquency rates associated with specific collateral types and origination dates. Overall losses have decreased since December 31, 2009, with the recovery in security prices resulting from increased demand for higher-yielding asset classes and a deceleration in the pace of home price declines due in part to the U. S. government programs to facilitate financing and to spur home purchases. The unrealized loss of $250 million is considered temporary, based on management’s assessment that the estimated future cash flows together with the credit enhancement levels for those securities remain sufficient to support the Firm’s investment. The credit enhancements associated with the below investment-grade and investment-grade positions are 9% and 24%, respectively. Asset-backed securities – Collateralized loan obligations As of December 31, 2010, gross unrealized losses related to CLOs were $210 million, of which $200 million related to securities that were in an unrealized loss position for 12 months or more. Overall losses have decreased since December 31, 2009, mainly as a result of lower default forecasts and spread tightening across various asset classes. Substantially all of these securities are rated “AAA,” “AA” and “A” and have an average credit enhancement of 30%. Credit enhancement in CLOs is primarily in the form of subordination, which is a form of structural credit enhancement where realized losses associated with assets held by an issuing vehicle are allocated to issued tranches considering their relative seniority. The key assumptions considered in analyzing potential credit losses were underlying loan and debt security defaults and loss severity. Based on current default trends, the Firm assumed collateral default rates of 2.1% for 2010 and 5% thereafter. Further, loss severities were assumed to be 48% for loans and 78% for debt securities. Losses on collateral were estimated to occur approximately 18 months after default. Pledged assets At December 31, 2010, assets were pledged to collateralize repurchase agreements, other securities financing agreements, derivative transactions and for other purposes, including to secure borrowings and public deposits. Certain of these pledged assets may be sold or repledged by the secured parties and are identified as financial instruments owned (pledged to various parties) on the Consolidated Balance Sheets. In addition, at December 31, 2010 and 2009, the Firm had pledged $288.7 billion and $344.6 billion, respectively, of financial instruments it owns that may not be sold or repledged by the secured parties. The significant components of the Firm’s pledged assets were as follows. |
13,635.25 | What is the average amount of Balance at December 31, 2012, and Net sales of Year Ended December 31, 2014 ? | The following table summarizes the changes in the Company’s valuation allowance:
<table><tr><td>Balance at January 1, 2010</td><td>$25,621</td></tr><tr><td>Increases in current period tax positions</td><td>907</td></tr><tr><td>Decreases in current period tax positions</td><td>-2,740</td></tr><tr><td>Balance at December 31, 2010</td><td>$23,788</td></tr><tr><td>Increases in current period tax positions</td><td>1,525</td></tr><tr><td>Decreases in current period tax positions</td><td>-3,734</td></tr><tr><td>Balance at December 31, 2011</td><td>$21,579</td></tr><tr><td>Increases in current period tax positions</td><td>0</td></tr><tr><td>Decreases in current period tax positions</td><td>-2,059</td></tr><tr><td>Balance at December 31, 2012</td><td>$19,520</td></tr></table>
Note 14: Employee Benefits Pension and Other Postretirement Benefits The Company maintains noncontributory defined benefit pension plans covering eligible employees of its regulated utility and shared services operations. Benefits under the plans are based on the employee’s years of service and compensation. The pension plans have been closed for most employees hired on or after January 1, 2006. Union employees hired on or after January 1, 2001 had their accrued benefit frozen and will be able to receive this benefit as a lump sum upon termination or retirement. Union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006 are provided with a 5.25% of base pay defined contribution plan. The Company does not participate in a multiemployer plan. The Company’s funding policy is to contribute at least the greater of the minimum amount required by the Employee Retirement Income Security Act of 1974 or the normal cost, and an additional contribution if needed to avoid “at risk” status and benefit restrictions under the Pension Protection Act of 2006. The Company may also increase its contributions, if appropriate, to its tax and cash position and the plan’s funded position. Pension plan assets are invested in a number of actively managed and indexed investments including equity and bond mutual funds, fixed income securities and guaranteed interest contracts with insurance companies. Pension expense in excess of the amount contributed to the pension plans is deferred by certain regulated subsidiaries pending future recovery in rates charged for utility services as contributions are made to the plans. (See Note 6) The Company also has several unfunded noncontributory supplemental non-qualified pension plans that provide additional retirement benefits to certain employees. The Company maintains other postretirement benefit plans providing varying levels of medical and life insurance to eligible retirees. The retiree welfare plans are closed for union employees hired on or after January 1, 2006. The plans had previously closed for non-union employees hired on or after January 1, 2002. The Company’s policy is to fund other postretirement benefit costs for rate-making purposes. Plan assets are invested in equity and bond mutual funds, fixed income securities, real estate investment trusts (“REITs”) and emerging market funds. The obligations of the plans are dominated by obligations for active employees. Because the timing of expected benefit payments is so far in the future and the size of the plan assets are small relative to the Company’s assets, the investment strategy is to allocate a significant percentage of assets to equities, which the Company believes will provide the highest return over the long-term period. The fixed income assets are invested in long duration debt securities and may be invested in fixed income instruments, such as futures and options in order to better match the duration of the plan liability. The allocation of goodwill in accordance with SFAS No.142 for the years ended December 31, 2006 and 2005 was as follows:
<table><tr><td> </td><td> Balance at Beginning of Period</td><td> Goodwill Acquired</td><td> Foreign Currency Translation and Other</td><td> Balance at End of Period</td></tr><tr><td>Year Ended December 31, 2006</td><td></td><td></td><td></td><td></td></tr><tr><td>Food Packaging</td><td>$540.4</td><td>$31.9</td><td>$14.9</td><td>$587.2</td></tr><tr><td>Protective Packaging</td><td>1,368.4</td><td>0.4</td><td>1.1</td><td>1,369.9</td></tr><tr><td>Total</td><td>$1,908.8</td><td>$32.3</td><td>$16.0</td><td>$1,957.1</td></tr><tr><td>Year Ended December 31, 2005</td><td></td><td></td><td></td><td></td></tr><tr><td>Food Packaging</td><td>$549.8</td><td>$0.7</td><td>$-10.1</td><td>$540.4</td></tr><tr><td>Protective Packaging</td><td>1,368.2</td><td>0.8</td><td>-0.6</td><td>1,368.4</td></tr><tr><td>Total</td><td>$1,918.0</td><td>$1.5</td><td>$-10.7</td><td>$1,908.8</td></tr></table>
See Note 20, “Acquisitions,” for additional information on the goodwill acquired during 2006. Note 4 Short Term Investments—Available-for-Sale Securities At December 31, 2006 and 2005, the Company’s available-for-sale securities consisted of auction rate securities for which interest or dividend rates are generally re-set for periods of up to 90 days. At December 31, 2006, the Company held $33.9 million of auction rate securities which were investments in preferred stock with no maturity dates. At December 31, 2005, the Company held $44.1 million of auction rate securities, of which $34.7 million were investments in preferred stock with no maturity dates and $9.4 million were investments in other auction rate securities with contractual maturities in 2031. At December 31, 2006 and 2005, the fair value of the available-for-sale securities held by the Company was equal to their cost. There were no gross realized gains or losses from the sale of availablefor-sale securities in 2006 and 2005. Note 5 Accounts Receivable Securitization Program In December 2001, the Company and a group of its U. S. subsidiaries entered into an accounts receivable securitization program with a bank and an issuer of commercial paper administered by the bank. On December 7, 2004, which was the scheduled expiration date of this program, the parties extended this program for an additional term of three years ending December 7, 2007. Under this receivables program, the Company’s two primary operating subsidiaries, Cryovac, Inc. and Sealed Air Corporation (US), sell all of their eligible U. S. accounts receivable to Sealed Air Funding Corporation, an indirectly wholly-owned subsidiary of the Company that was formed for the sole purpose of entering into the receivables program. Sealed Air Funding in turn may sell undivided ownership interests in these receivables to the bank and the issuer of commercial paper, subject to specified conditions, up to a maximum of $125.0 million of receivables interests outstanding from time to time. Sealed Air Funding retains the receivables it purchases from the operating subsidiaries, except those as to which it sells receivables interests to the bank or the issuer of commercial paper. The Company has structured the sales of accounts receivable by the operating subsidiaries to Sealed Air Funding, and the sales of receivables interests from Sealed Air Funding to the bank and the issuer of commercial paper, as “true sales” under applicable laws. The assets of Sealed Air Funding are not available to pay any creditors of the Company or of the Company’s other subsidiaries or affiliates. The Company accounts for these transactions as sales of receivables under the provisions of SFAS No.140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. ” Product Care 2016 compared with 2015 As reported, net sales decreased $30 million, or 2%, in 2016 compared with 2015, of which $22 million was due to negative currency impact. On a constant dollar basis, net sales decreased $8 million, or 1%, in 2016 compared with 2015 primarily due to the following: ? unfavorable price/mix of $29 million primarily in North America driven by targeted pricing incentives and an unfavorable product mix related to accelerated growth in e-Commerce and a shift in demand due to more innovative, resource-efficient solutions. This was partially offset by: ? higher unit volumes of $21 million, primarily in North America and EMEA due to ongoing strength in the e-Commerce and third party logistics markets, partially offset by rationalization and weakness in the industrial sector, as well as declines in Latin America due to the political and economic environment.2015 compared with 2014 As reported, net sales decreased $109 million, or 7%, in 2015 compared with 2014, of which $99 million was due to negative currency impact. On a constant dollar basis, net sales decreased $10 million, or 1%, in 2015 compared with 2014 primarily due to the following: ? lower unit volumes due to rationalization efforts in North America, Latin America and to a lesser extent, EMEA and weaknesses across the industrial sector. This was partially offset by: ? favorable price/mix in all regions, primarily in North America and Latin America reflecting results from our focus on maintaining pricing disciplines and an increase of sales from high-performance packaging solutions, including cushioning and packaging systems as compared to sales from general packaging solutions, and the progression of our pricing and value initiatives implemented to offset non-material inflationary costs as well as currency devaluation. Cost of Sales Cost of sales for the years ended December 31, were as follows:
<table><tr><td></td><td colspan="3">Year Ended December 31,</td><td rowspan="2">2016 vs. 2015 % Change</td><td rowspan="2">2015 vs. 2014 % Change</td></tr><tr><td>(In millions)</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Net sales</td><td>$6,778.3</td><td>$7,031.5</td><td>$7,750.5</td><td>-3.6%</td><td>-9.3%</td></tr><tr><td>Cost of sales</td><td>4,246.7</td><td>4,444.9</td><td>5,062.9</td><td>-4.5%</td><td>-12.2%</td></tr><tr><td>As a % of net sales</td><td>62.7%</td><td>63.2%</td><td>65.3%</td><td></td><td></td></tr><tr><td>Gross Profit</td><td>$2,531.6</td><td>$2,586.6</td><td>$2,687.6</td><td>-2.1%</td><td>-3.8%</td></tr></table>
2016 compared with 2015 As reported, costs of sales decreased $198 million in 2016 as compared to 2015. Cost of sales was impacted by favorable foreign currency translation of $163 million. On a constant dollar basis, cost of sales decreased $35 million primarily due to the divestiture of the North American foam trays and absorbent pads business and European food trays business of $79 million, offset by an increase of $51 million in expenses representing higher non-material manufacturing and direct costs, including salary and wage inflation, partially offset by restructuring savings and lower incentive based compensation.2015 compared with 2014 As reported, costs of sales decreased $618 million in 2015 as compared to 2014. Cost of sales was impacted by favorable foreign currency translation of $492 million. On a constant dollar basis, cost of sales decreased $126 million primarily due to the divestiture of the North American foam trays and absorbent pads business and European food trays business of $140 million and favorable impact of $31 million related to cost savings, freight, and other supply chain costs. These were partially offset by $47 million in expenses related to higher non-material manufacturing costs, including salary and wage inflation. |
6 | How many elements show private value in 2014 for Amortized Cost? | We cannot assure you that the Gener restructuring will be completed or that the terms thereof will not be changed materially. In addition, Gener is in the process of restructuring the debt of its subsidiaries, TermoAndes S. A. (‘‘TermoAndes’’) and InterAndes, S. A. (‘‘InterAndes’’), and expects that the maturities of these obligations will be extended. Under-performing Businesses During 2003 we sold or discontinued under-performing businesses and construction projects that did not meet our investment criteria or did not provide reasonable opportunities to restructure. It is anticipated that there will be less ongoing activity related to write-offs of development or construction projects and impairment charges in the future. The businesses, which were affected in 2003, are listed below.
<table><tr><td>Project Name</td><td>Project Type</td><td>Date</td><td>Location</td><td>Impairment (in millions)</td></tr><tr><td>Ede Este -1</td><td>Operating</td><td>December 2003</td><td>Dominican Republic</td><td>$60</td></tr><tr><td>Wolf Hollow</td><td>Operating</td><td>December 2003</td><td>United States</td><td>$120</td></tr><tr><td>Granite Ridge</td><td>Operating</td><td>December 2003</td><td>United States</td><td>$201</td></tr><tr><td>Colombia I</td><td>Operating</td><td>November 2003</td><td>Colombia</td><td>$19</td></tr><tr><td>Zeg</td><td>Construction</td><td>December 2003</td><td>Poland</td><td>$23</td></tr><tr><td>Bujagali</td><td>Construction</td><td>August 2003</td><td>Uganda</td><td>$76</td></tr><tr><td>El Faro</td><td>Construction</td><td>April 2003</td><td>Honduras</td><td>$20</td></tr></table>
(1) See Note 4—Discontinued Operations. Improving Credit Quality Our de-leveraging efforts reduced parent level debt by $1.2 billion in 2003 (including the secured equity-linked loan previously issued by AES New York Funding L. L. C. ). We refinanced and paid down near-term maturities by $3.5 billion and enhanced our year-end liquidity to over $1 billion. Our average debt maturity was extended from 2009 to 2012. At the subsidiary level we continue to pursue limited recourse financing to reduce parent credit risk. These factors resulted in an overall reduced cost of capital, improved credit statistics and expanded access to credit at both AES and our subsidiaries. Liquidity at the AES parent level is an important factor for the rating agencies in determining whether the Company’s credit quality should improve. Currency and political risk tend to be biggest variables to sustaining predictable cash flow. The nature of our large contractual and concession-based cash flow from these businesses serves to mitigate these variables. In 2003, over 81% of cash distributions to the parent company were from U. S. large utilities and worldwide contract generation. On February 4, 2004, we called for redemption of $155,049,000 aggregate principal amount of outstanding 8% Senior Notes due 2008, which represents the entire outstanding principal amount of the 8% Senior Notes due 2008, and $34,174,000 aggregate principal amount of outstanding 10% secured Senior Notes due 2005. The 8% Senior Notes due 2008 and the 10% secured Senior Notes due 2005 were redeemed on March 8, 2004 at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest to the redemption date. The mandatory redemption of the 10% secured Senior Notes due 2005 was being made with a portion of our ‘‘Adjusted Free Cash Flow’’ (as defined in the indenture pursuant to which the notes were issued) for the fiscal year ended December 31, 2003 as required by the indenture and was made on a pro rata basis. On February 13, 2004 we issued $500 million of unsecured senior notes. The unsecured senior notes mature on March 1, 2014 and are callable at our option at any time at a redemption price equal to 100% of the principal amount of the unsecured senior notes plus a make-whole premium. The unsecured senior notes were issued at a price of 98.288% and pay interest semi-annually at an annual The following table presents the difference between calculated fair values, based on quoted closing prices of publicly traded shares, and our Company’s cost basis in investments in publicly traded companies accounted for under the equity method (in millions):
<table><tr><td>December 31, 2018</td><td>FairValue</td><td>CarryingValue</td><td>Difference</td></tr><tr><td>Monster Beverage Corporation</td><td>$5,026</td><td>$3,573</td><td>$1,453</td></tr><tr><td>Coca-Cola European Partners plc</td><td>4,033</td><td>3,551</td><td>482</td></tr><tr><td>Coca-Cola FEMSA, S.A.B. de C.V.</td><td>3,401</td><td>1,714</td><td>1,687</td></tr><tr><td>Coca-Cola HBC AG</td><td>2,681</td><td>1,260</td><td>1,421</td></tr><tr><td>Coca-Cola Amatil Limited</td><td>1,325</td><td>656</td><td>669</td></tr><tr><td>Coca-Cola Bottlers Japan Holdings Inc.<sup>1</sup></td><td>978</td><td>1,142</td><td>-164</td></tr><tr><td>Embotelladora Andina S.A.</td><td>497</td><td>263</td><td>234</td></tr><tr><td>Coca–Cola Consolidated, Inc.<sup>2</sup></td><td>440</td><td>138</td><td>302</td></tr><tr><td>Coca-Cola İçecek A.Ş.</td><td>299</td><td>174</td><td>125</td></tr><tr><td>Total</td><td>$18,680</td><td>$12,471</td><td>$6,209</td></tr></table>
1 The carrying value of our investment in Coca-Cola Bottlers Japan Holdings Inc. (“CCBJHI”) exceeded its fair value as of December 31, 2018. Based on the length of time and the extent to which the market value has been less than our cost basis and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value, management determined that the decline in fair value was temporary in nature. Therefore, we did not record an impairment charge.2 Formerly known as Coca-Cola Bottling Co. Consolidated. Other Assets Our Company invests in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume. Additionally, our Company advances payments to certain customers for distribution rights as well as to fund future marketing activities intended to generate profitable volume, and we expense such payments over the periods benefited. Payments under these programs are generally capitalized and reported in the line item prepaid expenses and other assets or other assets, as appropriate, in our consolidated balance sheet. When facts and circumstances indicate that the carrying value of these assets or asset groups may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting gross profit and cash flows. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. During the year ended December 31, 2017, the Company recorded an impairment charge of $19 million related to CCR’s other assets. Refer to Note 17 of Notes to Consolidated Financial Statements. Property, Plant and Equipment As of December 31, 2018, the carrying value of our property, plant and equipment, net of depreciation, was $8,232 million, or 10 percent of our total assets. Certain events or changes in circumstances may indicate that the recoverability of the carrying amount or remaining useful life of property, plant and equipment should be assessed, including, among others, the manner or length of time in which the Company intends to use the asset, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses. When such events or changes in circumstances are present and an impairment test is performed, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition. These estimated future cash flows are consistent with those we use in our internal planning. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss. The impairment loss recognized is the amount by which the carrying amount exceeds the fair value. We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe a hypothetical marketplace participant would use. During the year ended December 31, 2018 and December 31, 2017, the Company recorded impairment charges of $312 million and $310 million, respectively, related to CCR’s property, plant and equipment. Refer to Note 17 of Notes to Consolidated Financial Statements. PRUDENTIAL FINANCIAL, INC. Notes to Consolidated Financial Statements (4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $693 million of net unrealized gains on impaired available-for-sale securities and less than $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. (5) Excludes notes with amortized cost of $3,850 million (fair value, $4,081 million) which have been offset with the associated payables under a netting agreement.
<table><tr><td></td><td colspan="5">December 31, 2014-6</td></tr><tr><td></td><td>AmortizedCost</td><td>GrossUnrealizedGains</td><td>GrossUnrealizedLosses</td><td>FairValue</td><td>OTTIin AOCI-4</td></tr><tr><td></td><td colspan="5">(in millions)</td></tr><tr><td>Fixed maturities, available-for-sale</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Treasury securities and obligations of U.S. government authorities and agencies</td><td>$15,807</td><td>$4,321</td><td>$5</td><td>$20,123</td><td>$0</td></tr><tr><td>Obligations of U.S. states and their political subdivisions</td><td>5,720</td><td>814</td><td>3</td><td>6,531</td><td>0</td></tr><tr><td>Foreign government bonds</td><td>69,894</td><td>11,164</td><td>117</td><td>80,941</td><td>-1</td></tr><tr><td>U.S. corporate public securities</td><td>70,960</td><td>9,642</td><td>536</td><td>80,066</td><td>-6</td></tr><tr><td>U.S. corporate private securities-1</td><td>27,767</td><td>3,082</td><td>89</td><td>30,760</td><td>0</td></tr><tr><td>Foreign corporate public securities</td><td>27,515</td><td>3,768</td><td>214</td><td>31,069</td><td>0</td></tr><tr><td>Foreign corporate private securities</td><td>17,389</td><td>1,307</td><td>215</td><td>18,481</td><td>0</td></tr><tr><td>Asset-backed securities-2</td><td>10,966</td><td>353</td><td>134</td><td>11,185</td><td>-592</td></tr><tr><td>Commercial mortgage-backed securities</td><td>13,486</td><td>430</td><td>39</td><td>13,877</td><td>-1</td></tr><tr><td>Residential mortgage-backed securities-3</td><td>5,612</td><td>448</td><td>3</td><td>6,057</td><td>-5</td></tr><tr><td>Total fixed maturities, available-for-sale-1</td><td>$265,116</td><td>$35,329</td><td>$1,355</td><td>$299,090</td><td>$-605</td></tr><tr><td>Equity securities, available-for-sale</td><td>$6,921</td><td>$3,023</td><td>$83</td><td>$9,861</td><td></td></tr></table>
December 31, 2014(6)
<table><tr><td></td><td colspan="4">December 31, 2014-6</td></tr><tr><td></td><td>AmortizedCost</td><td>GrossUnrealizedGains</td><td>GrossUnrealizedLosses</td><td>FairValue</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Fixed maturities, held-to-maturity</td><td></td><td></td><td></td><td></td></tr><tr><td>Foreign government bonds</td><td>$821</td><td>$184</td><td>$0</td><td>$1,005</td></tr><tr><td>Foreign corporate public securities</td><td>635</td><td>64</td><td>1</td><td>698</td></tr><tr><td>Foreign corporate private securities-5</td><td>78</td><td>4</td><td>0</td><td>82</td></tr><tr><td>Commercial mortgage-backed securities</td><td>78</td><td>7</td><td>0</td><td>85</td></tr><tr><td>Residential mortgage-backed securities-3</td><td>963</td><td>69</td><td>0</td><td>1,032</td></tr><tr><td>Total fixed maturities, held-to-maturity-5</td><td>$2,575</td><td>$328</td><td>$1</td><td>$2,902</td></tr></table>
(1) Excludes notes with amortized cost of $385 million (fair value, $385 million) which have been offset with the associated payables under a netting agreement. (2) Includes credit-tranched securities collateralized by sub-prime mortgages, auto loans, credit cards, education loans, and other asset types. (3) Includes publicly-traded agency pass-through securities and collateralized mortgage obligations. (4) Represents the amount of OTTI losses in AOCI, which were not included in earnings. Amount excludes $954 million of net unrealized gains on impaired available-for-sale securities and $1 million of net unrealized gains on impaired held-to-maturity securities relating to changes in the value of such securities subsequent to the impairment measurement date. (5) Excludes notes with amortized cost of $3,588 million (fair value, $3,953 million) which have been offset with the associated payables under a netting agreement. (6) Prior period amounts are presented on a basis consistent with the current period presentation. The amortized cost and fair value of fixed maturities by contractual maturities at December 31, 2015, are as follows: |
2,009 | Which year is Collections reinvested in revolving period securitizations in terms of Home Equity the least? | The following table sets forth information concerning increases in the total number of our AAP stores during the past five years:
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Beginning Stores</td><td>3,369</td><td>3,264</td><td>3,243</td><td>3,153</td><td>2,995</td></tr><tr><td>New Stores<sup>-1</sup></td><td>95</td><td>110</td><td>75</td><td>109</td><td>175</td></tr><tr><td>Stores Closed</td><td>-4</td><td>-5</td><td>-54</td><td>-19</td><td>-17</td></tr><tr><td>Ending Stores</td><td>3,460</td><td>3,369</td><td>3,264</td><td>3,243</td><td>3,153</td></tr></table>
(1) Does not include stores that opened as relocations of previously existing stores within the same general market area or substantial renovations of stores.6WRUH7HFKQRORJ\ Our store-based information systems, which are designed to improve the efficiency of our operations and enhance customer service, are comprised of a proprietary POS system and electronic parts catalog, or EPC, system. Information maintained by our POS system is used to formulate pricing, marketing and merchandising strategies and to replenish inventory accurately and rapidly. Our POS system is fully integrated with our EPC system and enables our store Team Members to assist our customers in their parts selection and ordering based on the year, make, model and engine type of their vehicles. Our centrally-based EPC data management system enables us to reduce the time needed to (i) exchange data with our vendors and (ii) catalog and deliver updated, accurate parts information. Our EPC system also contains enhanced search engines and user-friendly navigation tools that enhance our Team Members' ability to look up any needed parts as well as additional products the customer needs to complete an automotive repair project. If a hard-to-find part or accessory is not available at one of our stores, the EPC system can determine whether the part is carried and in-stock through our HUB or PDQ? networks or can be ordered directly from one of our vendors. Available parts and accessories are then ordered electronically from another store, HUB, PDQ? or directly from the vendor with immediate confirmation of price, availability and estimated delivery time. We also support our store operations with additional proprietary systems and customer driven labor scheduling capabilities. Our store-level inventory management system provides real-time inventory tracking at the store level. With the store-level system, store Team Members can check the quantity of on-hand inventory for any SKU, adjust stock levels for select items for store specific events, automatically process returns and defective merchandise, designate SKUs for cycle counts and track merchandise transfers. Our stores use radio frequency hand-held devices to help ensure the accuracy of our inventory. Our standard operating procedure, or SOP, system is a web-based, electronic data management system that provides our Team Members with instant access to any of our standard operating procedures through a comprehensive on-line search function. All of these systems are tightly integrated and provide real-time, comprehensive information to store personnel, resulting in improved customer service levels, Team Member productivity and in-stock availability.6WRUH6XSSRUW&HQWHU 0HUFKDQGLVLQJ Purchasing for virtually all of the merchandise for our stores is handled by our merchandise teams located in three primary locations: ? Store support center in Roanoke, Virginia; ? Regional office in Minneapolis, Minnesota; and ? Global sourcing office in Taipei, Taiwan. Our Roanoke team is primarily responsible for the parts categories and our Minnesota team is primarily responsible for accessories, oil and chemicals. Our global sourcing team works closely with both teams. In Fiscal 2011, we purchased merchandise from approximately 500 vendors, with no single vendor accounting for more than 9% of purchases. Our purchasing strategy involves negotiating agreements with most of our vendors to purchase merchandise over a specified period of time along with other terms, including pricing, payment terms and volume. The merchandising team has developed strong vendor relationships in the industry and, in a collaborative effort with our vendor partners, utilizes a category management process where we manage the mix of our product offerings to meet customer demand. We believe this process, which develops a customer-focused business plan for each merchandise category, and our global sourcing operation are critical to improving comparable store sales, gross margin and inventory productivity. There were no new securitizations of home equity loans during 2009 and 2008. The following table summarizes selected information related to home equity and automobile loan securitizations at and for the year ended December 31, 2009 and 2008.
<table><tr><td></td><td colspan="3"> Home Equity</td><td colspan="3">Automobile</td></tr><tr><td>(Dollars in millions)</td><td colspan="2"> 2009</td><td>2008</td><td colspan="2"> 2009</td><td>2008</td></tr><tr><td> For the Year Ended December 31</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash proceeds from new securitizations</td><td> $</td><td> –</td><td>$–</td><td> $</td><td> –</td><td>$741</td></tr><tr><td>Losses on securitizations<sup>-1</sup></td><td> </td><td> –</td><td>–</td><td> </td><td> –</td><td>-31</td></tr><tr><td>Collections reinvested in revolving period securitizations</td><td> </td><td> 177</td><td>235</td><td> </td><td> –</td><td>–</td></tr><tr><td>Repurchases of loans from trust<sup>-2</sup></td><td> </td><td> 268</td><td>128</td><td> </td><td> 298</td><td>184</td></tr><tr><td>Cash flows received on residual interests</td><td> </td><td> 35</td><td>27</td><td> </td><td> 52</td><td>–</td></tr><tr><td> At December 31</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Principal balance outstanding</td><td> </td><td> 46,282</td><td>34,169</td><td> </td><td> 2,656</td><td>5,385</td></tr><tr><td>Senior securities held<sup>-3, 4</sup></td><td> </td><td> 15</td><td>–</td><td> </td><td> 2,119</td><td>4,102</td></tr><tr><td>Subordinated securities held<sup>-5</sup></td><td> </td><td> 48</td><td>3</td><td> </td><td> 195</td><td>383</td></tr><tr><td>Residual interests held<sup>-6</sup></td><td> </td><td> 100</td><td>93</td><td> </td><td> 83</td><td>84</td></tr></table>
(1) Net of hedges (2) Repurchases of loans from the trust for home equity loans are typically a result of the Corporation’s representations and warranties, modifications or the exercise of an optional clean-up call. In addition, during 2009 and 2008, the Corporation paid $141 million and $34 million to indemnify the investor or insurer under the representations and warranties, and corporate guarantees. For further information regarding representations and warranties, and corporate guarantees, see the First Lien Mortgage-related Securitizations discussion. Repurchases of automobile loans during 2009 and 2008 were due to the exercise of an optional clean-up call. (3) As a holder of these securities, the Corporation receives scheduled interest and principal payments. During 2009, there were no other-than-temporary impairment losses recorded on those securities classified as AFS debt securities. (4) At December 31, 2009, all of the held senior securities issued by the home equity securitization trusts were valued using quoted market prices and classified as trading account assets. At December 31, 2009 and 2008, substantially all of the held senior securities issued by the automobile securitization trusts were valued using quoted market prices and classified as AFS debt securities. (5) At December 31, 2009 and 2008, substantially all of the held subordinated securities issued by the home equity securitization trusts were valued using model valuations and classified as AFS debt securities. At December 31, 2009 and 2008, substantially all of the held subordinated securities issued by the automobile securitization trusts were valued using quoted market prices and classified as AFS debt securities. (6) Residual interests include the residual asset, overcollateralization and cash reserve accounts, which are carried at fair value or amounts that approximate fair value. The residual interests were derived using model valuations and substantially all are classified in other assets. Under the terms of the Corporation’s home equity securitizations, advances are made to borrowers when they draw on their lines of credit and the Corporation is reimbursed for those advances from the cash flows in the securitization. During the revolving period of the securitization, this reimbursement normally occurs within a short period after the advance. However, when the securitization transaction has begun a rapid amortization period, reimbursement of the Corporation’s advance occurs only after other parties in the securitization have received all of the cash flows to which they are entitled. This has the effect of extending the time period for which the Corporation’s advances are outstanding. In particular, if loan losses requiring draws on monoline insurers’ policies, which protect the bondholders in the securitization, exceed a specified threshold or duration, the Corporation may not receive reimbursement for all of the funds advanced to borrowers, as the senior bondholders and the monoline insurers have priority for repayment. The Corporation evaluates all of its home equity securitizations for their potential to experience a rapid amortization event by estimating the amount and timing of future losses on the underlying loans, the excess spread available to cover such losses and by evaluating any estimated shortfalls in relation to contractually defined triggers. A maximum funding obligation attributable to rapid amortization cannot be calculated as a home equity borrower has the ability to pay down and redraw balances. At December 31, 2009 and 2008, home equity securitization transactions in rapid amortization had $14.1 billion and $13.1 billion of trust certificates outstanding. This amount is significantly greater than the amount the Corporation expects to fund. At December 31, 2009, an additional $1.1 billion of trust certificates outstanding pertain to home equity securitization transactions that are expected to enter rapid amortization during the next 24 months. The charges that will ultimately be recorded as a result of the rapid amortization events are dependent on the performance of the loans, the amount of subsequent draws, and the timing of related cash flows. At December 31, 2009 and 2008, the reserve for losses on expected future draw obligations on the home equity securitizations in or expected to be in rapid amortization was $178 million and $345 million. The Corporation has consumer MSRs from the sale or securitization of home equity loans. The Corporation recorded $128 million and $78 million of servicing fee income related to home equity securitizations during 2009 and 2008. For more information on MSRs, see Note 22 – Mortgage Servicing Rights. At December 31, 2009 and 2008, there were no recognized servicing assets or liabilities associated with any of the automobile securitization transactions. The Corporation recorded $43 million and $30 million in servicing fees related to automobile securitizations during 2009 and 2008. The Corporation provides financing to certain entities under assetbacked financing arrangements. These entities are controlled and consolidated by third parties. At December 31, 2009, the principal balance outstanding for these asset-backed financing arrangements was $10.4 billion, the maximum loss exposure was $6.8 billion, and on-balance sheet assets were $6.7 billion which are primarily recorded in loans and leases. The total cash flows for 2009 were $491 million and are primarily related to principal and interest payments received. NOTE 9 – Variable Interest Entities The Corporation utilizes SPEs in the ordinary course of business to support its own and its customers’ financing and investing needs. These SPEs are typically structured as VIEs and are thus subject to consolidation by the reporting enterprise that absorbs the majority of the economic risks and rewards of the VIE. To determine whether it must consolidate a VIE, the Corporation qualitatively analyzes the design of the VIE to identify the creators of variability within the VIE, including an assessment as to the nature of the risks that are created by the assets and other contractual arrangements of the VIE, and identifies whether it will absorb a majority of that variability. In addition, the Corporation uses VIEs such as trust preferred securities trusts in connection with its funding activities, as described in more detail in Note 13 – Long-term Debt. The Corporation also uses VIEs in the form of synthetic securitization vehicles to mitigate a portion of the credit risk on its residential mortgage loan portfolio as described in Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 54 LIQUIDITY AND CAPITAL RESOURCES Cash, cash equivalents and marketable investment securities. We consider all liquid investments purchased within 90 days of their maturity to be cash equivalents. See “Item 7A. – Quantitative and Qualitative Disclosures About Market Risk” for further discussion regarding our marketable investment securities. As of December 31, 2008, our cash, cash equivalents and current marketable investment securities totaled $559 million compared to $2.788 billion as of December 31, 2007, a decrease of $2.229 billion. Our principal source of liquidity during 2008 was cash generated by operating activities of $2.188 billion, approximately $750 million raised in issuing our 7 ?% Senior Notes due 2015 and the net sales of marketable and strategic investments of $166 million. Our primary uses of cash during 2008 were for the redemption of $1.5 billion of debt, the purchases of property and equipment of $1.130 billion, the acquisition of 700 MHz wireless spectrum for $712 million, the distribution of $1.532 billion to EchoStar related to the Spin-off, and the repurchase of 3.1 million shares of our common stock for $83 million. In addition, we reclassified $240 million of marketable investment securities on hand at December 31, 2007 to noncurrent assets during 2008 as recent events in the credit markets have reduced or eliminated current liquidity for these investments. The following discussion highlights our free cash flow and cash flow activities during the years ended December 31, 2008, 2007 and 2006. Free cash flow. We define free cash flow as “Net cash flows from operating activities” less “Purchases of property and equipment,” as shown on our Consolidated Statements of Cash Flows. We believe free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions and for certain other activities. Free cash flow is not a measure determined in accordance with GAAP and should not be considered a substitute for “Operating income,” “Net income,” “Net cash flows from operating activities” or any other measure determined in accordance with GAAP. Since free cash flow includes investments in operating assets, we believe this non-GAAP liquidity measure is useful in addition to the most directly comparable GAAP measure - “Net cash flows from operating activities. ” During the years ended December 31, 2008, 2007 and 2006, free cash flow was significantly impacted by changes in operating assets and liabilities as shown in the “Net cash flows from operating activities” section of our Consolidated Statements of Cash Flows included herein. Operating asset and liability balances can fluctuate significantly from period to period and there can be no assurance that free cash flow will not be negatively impacted by material changes in operating assets and liabilities in future periods, since these changes depend upon, among other things, management’s timing of payments and control of inventory levels, and cash receipts. In addition to fluctuations resulting from changes in operating assets and liabilities, free cash flow can vary significantly from period to period depending upon, among other things, subscriber growth, subscriber revenue, subscriber churn, subscriber acquisition costs including amounts capitalized under our equipment lease programs, operating efficiencies, increases or decreases in purchases of property and equipment and other factors. The following table reconciles free cash flow to “Net cash flows from operating activities. ”
<table><tr><td></td><td colspan="3"> For the Years Ended December 31,</td></tr><tr><td></td><td> 2008</td><td> 2007 (In thousands)</td><td> 2006</td></tr><tr><td>Free cash flow</td><td>$1,058,454</td><td>$1,172,198</td><td>$882,924</td></tr><tr><td>Add back:</td><td></td><td></td><td></td></tr><tr><td>Purchases of property and equipment</td><td>1,129,890</td><td>1,444,522</td><td>1,396,318</td></tr><tr><td>Net cash flows from operating activities</td><td>$2,188,344</td><td>$2,616,720</td><td>$2,279,242</td></tr></table>
The decline in free cash flow from 2007 to 2008 of $114 million resulted from a decrease in “Net cash flows from operating activities” of $429 million, or 16.4%, partially offset by a decrease in “Purchases of property and equipment” of $315 million, or 21.8%. The decrease in “Net cash flows from operating activities” was primarily attributable to a $351 million decrease in cash resulting from changes in operating assets and liabilities and a $59 million decrease in net income, adjusted to exclude non-cash changes in “Depreciation and amortization” expense and “Realized and Notes to Consolidated Financial Statements Note 16. Statutory Accounting Practices (Unaudited) CNA’s domestic insurance subsidiaries maintain their accounts in conformity with accounting practices prescribed or permitted by insurance regulatory authorities, which vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, typical adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in shareholders’ equity relating to certain fixed maturity securities. CNA’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and general administrative rules. CCC follows a permitted practice related to the statutory provision for reinsurance, or the uncollectible reinsurance reserve. This permitted practice allows CCC to record an additional uncollectible reinsurance reserve amount through a different financial statement line item than the prescribed statutory convention. This permitted practice had no effect on CCC’s statutory surplus at December 31, 2007 or 2006. CNA’s ability to pay dividends and other credit obligations is significantly dependent on receipt of dividends from its subsidiaries. The payment of dividends to CNA by its insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective state insurance departments. Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval of the Illinois Department of Financial and Professional Regulation – Division of Insurance (the “Department”), may be paid only from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2007, CCC is in a positive earned surplus position, enabling CCC to pay approximately $630 million of dividend payments during 2008 that would not be subject to the Department’s prior approval. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company. CNA’s domestic insurance subsidiaries are subject to risk-based capital requirements. Risk-based capital is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of risk-based capital specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company’s actual capital is evaluated by a comparison to the risk-based capital results, as determined by the formula. Companies below minimum risk-based capital requirements are classified within certain levels, each of which requires specified corrective action. As of December 31, 2007 and 2006, all of CNA’s domestic insurance subsidiaries exceeded the minimum risk-based capital requirements. Combined statutory capital and surplus and net income, determined in accordance with accounting practices prescribed or permitted by insurance regulatory authorities for the property and casualty and the life insurance subsidiaries, were as follows: |
670 | what are the total off-balance sheet obligations , ( in millions ) ? | The following table details the fee-paid committed and uncommitted credit lines we had available as of May 28, 2017:
<table><tr><td> In Billions</td><td> Facility Amount</td><td> Borrowed Amount</td></tr><tr><td>Credit facility expiring:</td><td></td><td></td></tr><tr><td>May 2022</td><td>$2.7</td><td>$—</td></tr><tr><td>June 2019</td><td>0.2</td><td>0.1</td></tr><tr><td>Total committed credit facilities</td><td>2.9</td><td>0.1</td></tr><tr><td>Uncommitted credit facilities</td><td>0.5</td><td>0.1</td></tr><tr><td>Total committed and uncommitted credit facilities</td><td>$3.4</td><td>$0.2</td></tr></table>
In fiscal 2016, we entered into a $2.7 billion fee-paid committed credit facility that was originally scheduled to expire in May 2021. During the fourth quarter of fiscal 2017 we amended the credit facility’s expiration date by one year to May 2022. To ensure availability of funds, we maintain bank credit lines sufficient to cover our outstanding notes payable. Commercial paper is a continuing source of short-term financing. We have commercial paper programs available to us in the United States and Europe. We also have uncommitted and asset-backed credit lines that support our foreign operations. The credit facilities contain several covenants, including a requirement to maintain a fixed charge coverage ratio of at least 2.5 times. Certain of our long-term debt agreements, our credit facilities, and our noncontrolling interests contain restrictive covenants. As of May 28, 2017, we were in compliance with all of these covenants. We have $605 million of long-term debt maturing in the next 12 months that is classified as current, including $500 million of 1.4 percent notes due October 2017 and $100 million of 6.39 percent fixed rate medium term notes due for remarketing in February 2018. We believe that cash flows from operations, together with available short- and long-term debt financing, will be adequate to meet our liquidity and capital needs for at least the next 12 months. As of May 28, 2017, our total debt, including the impact of derivative instruments designated as hedges, was 67 percent in fixed-rate and 33 percent in floating-rate instruments, compared to 78 percent in fixedrate and 22 percent in floating-rate instruments on May 29, 2016. Return on average total capital was 12.7 percent in fiscal 2017 compared to 12.9 percent in fiscal 2016. Improvement in adjusted return on average total capital is one of our key performance measures (see the “NonGAAP Measures” section below for our discussion of this measure, which is not defined by GAAP). Adjusted return on average total capital increased 30 basis points from 11.3 percent in fiscal 2016 to 11.6 percent in fiscal 2017 as fiscal 2017 adjusted earnings increased. On a constant-currency basis, adjusted return on average total capital increased 40 basis points. We also believe that our fixed charge coverage ratio and the ratio of operating cash flow to debt are important measures of our financial strength. Our fixed charge coverage ratio in fiscal 2017 was 7.26 compared to 7.40 in fiscal 2016. The measure decreased from fiscal 2016 as earnings before income taxes and after-tax earnings from joint ventures decreased by $132 million in fiscal 2017. Our operating cash flow to debt ratio decreased 6.8 percentage points to 24.4 percent in fiscal 2017, driven by a decrease in cash provided by operations and an increase in notes payable. We have a 51 percent controlling interest in Yoplait SAS and a 50 percent interest in Yoplait Marques SNC and Liberté Marques Sàrl. Sodiaal holds the remaining interests in each of these entities. We consolidate these entities into our consolidated financial statements. We record Sodiaal’s 50 percent interest in Yoplait Marques SNC and Liberté Marques Sàrl as noncontrolling interests, and its 49 percent interest in Yoplait SAS as a redeemable interest on our Consolidated Balance Sheets. These euro- and Canadian dollar-denominated interests are reported in U. S. dollars on our Consolidated Balance Sheets. Sodiaal has the ability to put all or a portion of its redeemable interest to us at fair value once per year, up to three times before December 2024. As of May 28, 2017, the redemption value of the redeemable interest was $911 million which approximates its fair value. The third-party holder of the General Mills Cereals, LLC (GMC) Class A Interests receives quarterly preferred distributions from available net income based on the application of a floating preferred return rate to the holder’s capital account balance established in the most recent mark-to-market valuation (currently $252 million). On June 1, 2015, the floating preferred return rate on GMC’s Class A Interests was reset to the sum of three-month LIBOR plus 125 basis points. The preferred return rate is adjusted every three years through a negotiated agreement with the Class A Interest holder or through a remarketing auction. We have an option to purchase the Class A Interests for consideration equal to the then current capital account value, plus any unpaid preferred return and the prescribed make-whole amount. If we purchase these interests, any change in the third-party holder’s capital account from its original value will be charged directly to retained earnings and will increase or decrease the net earnings used to calculate EPS in that period. OFF-BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS As of May 28, 2017, we have issued guarantees and comfort letters of $505 million for the debt and other obligations of consolidated subsidiaries, and guarantees and comfort letters of $165 million for the debt and other obligations of non-consolidated affiliates, mainly CPW. In addition, off-balance sheet arrangements are generally limited to the future payments under non-cancelable operating leases, which totaled $501 million as of May 28, 2017. As of May 28, 2017, we had invested in five variable interest entities (VIEs). None of our VIEs are material to our results of operations, financial condition, or liquidity as of and for the fiscal year ended May 28, 2017. Our defined benefit plans in the United States are subject to the requirements of the Pension Protection Act (PPA). In the future, the PPA may require us to make additional contributions to our domestic plans. We do not expect to be required to make any contributions in fiscal 2017. The following table summarizes our future estimated cash payments under existing contractual obligations, including payments due by period:
<table><tr><td></td><td colspan="5"> Payments Due by Fiscal Year</td></tr><tr><td> In Millions</td><td>Total</td><td>2018</td><td>2019 -20</td><td>2021 -22</td><td>2023 and Thereafter</td></tr><tr><td>Long-term debt (a)</td><td>$8,290.6</td><td>604.2</td><td>2,647.7</td><td>1,559.3</td><td>3,479.4</td></tr><tr><td>Accrued interest</td><td>83.8</td><td>83.8</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Operating leases (b)</td><td>500.7</td><td>118.8</td><td>182.4</td><td>110.4</td><td>89.1</td></tr><tr><td>Capital leases</td><td>1.2</td><td>0.4</td><td>0.6</td><td>0.1</td><td>0.1</td></tr><tr><td>Purchase obligations (c)</td><td>3,191.0</td><td>2,304.8</td><td>606.8</td><td>264.3</td><td>15.1</td></tr><tr><td>Total contractual obligations</td><td>12,067.3</td><td>3,112.0</td><td>3,437.5</td><td>1,934.1</td><td>3,583.7</td></tr><tr><td>Other long-term obligations (d)</td><td>1,372.7</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total long-term obligations</td><td>$13,440.0</td><td>$3,112.0</td><td>$3,437.5</td><td>$1,934.1</td><td>$3,583.7</td></tr></table>
(a) Amounts represent the expected cash payments of our long-term debt and do not include $1.2 million for capital leases or $44.4 million for net unamortized debt issuance costs, premiums and discounts, and fair value adjustments. (b) Operating leases represents the minimum rental commitments under non-cancelable operating leases. (c) The majority of the purchase obligations represent commitments for raw material and packaging to be utilized in the normal course of business and for consumer marketing spending commitments that support our brands. For purposes of this table, arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure, and approximate timing of the transaction. Most arrangements are cancelable without a significant penalty and with short notice (usually 30 days). Any amounts reflected on the Consolidated Balance Sheets as accounts payable and accrued liabilities are excluded from the table above. (d) The fair value of our foreign exchange, equity, commodity, and grain derivative contracts with a payable position to the counterparty was $24 million as of May 28, 2017, based on fair market values as of that date. Future changes in market values will impact the amount of cash ultimately paid or received to settle those instruments in the future. Other long-term obligations mainly consist of liabilities for accrued compensation and benefits, including the underfunded status of certain of our defined benefit pension, other postretirement benefit, and postemployment benefit plans, and miscellaneous liabilities. We expect to pay $21 million of benefits from our unfunded postemployment benefit plans and $14.6 million of deferred compensation in fiscal 2018. We are unable to reliably estimate the amount of these payments beyond fiscal 2018. As of May 28, 2017, our total liability for uncertain tax positions and accrued interest and penalties was $158.6 million. SIGNIFICANT ACCOUNTING ESTIMATES For a complete description of our significant accounting policies, see Note 2 to the Consolidated Financial Statements on page 51 of this report. Our significant accounting estimates are those that have a meaningful impact on the reporting of our financial condition and results of operations. These estimates include our accounting for promotional expenditures, valuation of long-lived assets, intangible assets, redeemable interest, stock-based compensation, income taxes, and defined benefit pension, other postretirement benefit, and postemployment benefit plans. Promotional Expenditures Our promotional activities are conducted through our customers and directly or indirectly with end consumers. These activities include: payments to customers to perform merchandising activities on our behalf, such as advertising or in-store displays; discounts to our list prices to lower retail shelf prices; payments to gain distribution of new products; coupons, contests, and other incentives; and media and advertising expenditures. The recognition of these costs requires estimation of customer participation and performance levels. These estimates are based |
368 | in 2009 what was the gross adjustment to the unrecognized tax benefits balance based on the federal and state settlements in millions | REPUBLIC SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED approximately $32 million of federal tax payments were deferred and paid in 2009 as a result of the Allied acquisition. The following table summarizes the activity in our gross unrecognized tax benefits for the years ended December 31:
<table><tr><td></td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Balance at beginning of year</td><td>$242.2</td><td>$611.9</td><td>$23.2</td></tr><tr><td>Additions due to the Allied acquisition</td><td>-</td><td>13.3</td><td>582.9</td></tr><tr><td>Additions based on tax positions related to current year</td><td>2.8</td><td>3.9</td><td>10.6</td></tr><tr><td>Reductions for tax positions related to the current year</td><td>-</td><td>-</td><td>-5.1</td></tr><tr><td>Additions for tax positions of prior years</td><td>7.5</td><td>5.6</td><td>2.0</td></tr><tr><td>Reductions for tax positions of prior years</td><td>-7.4</td><td>-24.1</td><td>-1.3</td></tr><tr><td>Reductions for tax positions resulting from lapse of statute of limitations</td><td>-10.4</td><td>-0.5</td><td>-0.4</td></tr><tr><td>Settlements</td><td>-11.9</td><td>-367.9</td><td>-</td></tr><tr><td>Balance at end of year</td><td>$222.8</td><td>$242.2</td><td>$611.9</td></tr></table>
New accounting guidance for business combinations became effective for our 2009 financial statements. This new guidance changed the treatment of acquired uncertain tax liabilities. Under previous guidance, changes in acquired uncertain tax liabilities were recognized through goodwill. Under the new guidance, subsequent changes in acquired unrecognized tax liabilities are recognized through the income tax provision. As of December 31, 2010, $206.5 million of the $222.8 million of unrecognized tax benefits related to tax positions taken by Allied prior to the 2008 acquisition. Included in the balance at December 31, 2010 and 2009 are approximately $209.1 million and $217.6 million of unrecognized tax benefits (net of the federal benefit on state issues) that, if recognized, would affect the effective income tax rate in future periods. During 2010, the IRS concluded its examination of our 2005 and 2007 tax years. The conclusion of this examination reduced our gross unrecognized tax benefits by approximately $1.9 million. We also resolved various state matters during 2010 that, in the aggregate, reduced our gross unrecognized tax benefits by approximately $10.0 million. During 2009, we settled our outstanding tax dispute related to Allied’s risk management companies (see – Risk Management Companies) with both the Department of Justice (DOJ) and the Internal Revenue Service (IRS). This settlement reduced our gross unrecognized tax benefits by approximately $299.6 million. During 2009, we also settled with the IRS, through an accounting method change, our outstanding tax dispute related to intercompany insurance premiums paid to Allied’s captive insurance company. This settlement reduced our gross unrecognized tax benefits by approximately $62.6 million. In addition to these federal matters, we also resolved various state matters that, in the aggregate, reduced our gross unrecognized tax benefits during 2009 by approximately $5.8 million. We recognize interest and penalties as incurred within the provision for income taxes in our consolidated statements of income. Related to the unrecognized tax benefits previously noted, we accrued interest of $19.2 million during 2010 and, in total as of December 31, 2010, have recognized a liability for penalties of $1.2 million and interest of $99.9 million. During 2009, we accrued interest of $24.5 million and, in total at December 31, 2009, had recognized a liability for penalties of $1.5 million and interest of $92.3 million. During 2008, we accrued penalties of $0.2 million and interest of $5.2 million and, in total at December 31, 2008, had recognized a liability for penalties of $88.1 million and interest of $180.0 million. NONREGULATED OPERATING MARGINS The following table details the changes in nonregulated revenue and margin included in continuing operations:
<table><tr><td> (Millions of Dollars)</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Nonregulated and other revenue</td><td>$74</td><td>$75</td><td>$134</td></tr><tr><td>Nonregulated cost of goods sold</td><td>-25</td><td>-29</td><td>-81</td></tr><tr><td>Nonregulated margin</td><td>$49</td><td>$46</td><td>$53</td></tr></table>
2004 Comparison to 2003 Nonregulated revenue decreased in 2004, due primarily to the discontinued consolidation of an investment in an independent power-producing entity that was no longer majority owned. NON-FUEL OPERATING EXPENSES AND OTHER ITEMS Other Utility Operating and Maintenance Expenses Other operating and maintenance expenses for 2005 increased by approximately $87 million, or 5.5 percent, compared with 2004. An outage at the Monticello nuclear plant and higher outage costs at Prairie Island in 2005 increased costs by approximately $26 million. Employee benefit costs were higher in 2005, primarily due to increased pension benefits and long-term disability costs. Also contributing to the increase were higher uncollectible receivable costs, attributable in part to modifications to the bankruptcy laws, higher fuel prices and certain changes in the credit and collections process. Other operating and maintenance expenses for 2004 increased by approximately $21 million, or 1.4 percent, compared with 2003. Of the increase, $12 million was incurred to assist with the storm damage repair in Florida and was offset by increased revenue. The remaining increase of $9 million is primarily due to higher electric service reliability costs, higher information technology costs, higher plant-related costs, higher costs related to a customer billing system conversion and increased costs primarily related to compliance with the Sarbanes-Oxley Act of 2002. The higher costs were partially offset by lower employee benefit and compensation costs and lower nuclear plant outage costs
<table><tr><td> (Millions of Dollars)</td><td>2005 vs. 2004</td><td>2004 vs. 2003</td></tr><tr><td>Higher (lower) employee benefit costs</td><td>$31</td><td>$-12</td></tr><tr><td>Higher (lower) nuclear plant outage costs</td><td>26</td><td>-13</td></tr><tr><td>Higher uncollectible receivable costs</td><td>19</td><td>2</td></tr><tr><td>Higher donations to energy assistance programs</td><td>4</td><td>1</td></tr><tr><td>Higher mutual aid assistance costs</td><td>1</td><td>12</td></tr><tr><td>Higher electric service reliability costs</td><td>9</td><td>9</td></tr><tr><td>Higher (lower) information technology costs</td><td>-6</td><td>8</td></tr><tr><td>Higher (lower) plant-related costs</td><td>-7</td><td>4</td></tr><tr><td>Higher costs related to customer billing system conversion</td><td>4</td><td>4</td></tr><tr><td>Higher costs to comply with Sarbanes-Oxley Act of 2002</td><td>—</td><td>4</td></tr><tr><td>Other</td><td>6</td><td>2</td></tr><tr><td>Total operating and maintenance expense increase</td><td>$87</td><td>$21</td></tr></table>
Other Nonregulated Operating and Maintenance Expenses Other nonregulated operating and maintenance expenses decreased $16 million, or 35.4 percent, in 2005 compared with 2004, primarily due to the accrual of $18 million in 2004 for a settlement agreement related to shareholder lawsuits. Other nonregulated operating and maintenance expenses decreased $9 million, or 17.5 percent, in 2004 compared with 2003. This decrease resulted from the dissolution of Planergy International and the discontinued consolidation of an investment in an independent powerproducing entity that was no longer majority owned after the divestiture of NRG. Depreciation and Amortization Depreciation and amortization expense for 2005 increased by approximately $61 million, or 8.7 percent, compared with 2004. The changes were primarily due to the installation of new steam generators at Unit 1 of the Prairie Island nuclear plant and software system additions, both of which have relatively short depreciable lives compared with other capital additions. The Prairie Island steam generators are being depreciated over the remaining life of the plant operating license, which expires in 2013. In addition, the Minnesota Renewable Development Fund and renewable cost-recovery amortization, which is recovered in revenue as a non-fuel rider and does not have an impact on net income, increased over 2004. The increase was partially offset by the changes in useful lives and net salvage rates approved by Minnesota regulators in August 2005. Depreciation and amortization expense for 2004 decreased by $21 million, or 2.9 percent, compared with 2003. The reduction is largely due to several regulatory decisions. In 2004, as a result of a Minnesota Public Utilities Commission (MPUC) order, NSP-Minnesota modified its decommissioning expense recognition, which served to reduce decommissioning accruals by approximately $18 million in 2004 compared with 2003. In addition, effective July 1, 2003, the Colorado Public Utilities Commission (CPUC) lengthened the depreciable lives of certain electric utility plant at PSCo as a part of the general Colorado rate case, reducing annual depreciation expense by $20 million. PSCo experienced the full impact of the annual reduction in 2004, resulting in a decrease in depreciation expense of $10 million for 2004 compared with 2003. These decreases were partially offset by plant additions. Contractual Obligations and Other Commitments — Xcel Energy has contractual obligations and other commitments that will need to be funded in the future, in addition to its capital expenditure programs. The following is a summarized table of contractual obligations and other commercial commitments at Dec. 31, 2007. See additional discussion in the consolidated statements of capitalization and Notes 4, 5, and 15 to the consolidated financial statements.
<table><tr><td> </td><td colspan="5"> Payments Due by Period</td></tr><tr><td> </td><td> Total</td><td> Less than 1 Year</td><td> 1 to 3 Years</td><td> 4 to 5 Years</td><td> After 5 Years</td></tr><tr><td> </td><td colspan="5"> (Thousands of Dollars) </td></tr><tr><td>Long-term debt, principal and interest payments</td><td>$12,599,312</td><td>$1,065,530</td><td>$1,849,818</td><td>$1,760,489</td><td>$7,923,475</td></tr><tr><td>Capital lease obligations</td><td>85,951</td><td>6,139</td><td>11,794</td><td>11,139</td><td>56,879</td></tr><tr><td>Operating leases<sup>(a)</sup>,<sup>(b)</sup></td><td>1,439,346</td><td>104,557</td><td>200,000</td><td>161,743</td><td>973,046</td></tr><tr><td>Unconditional purchase obligations</td><td>12,047,364</td><td>2,448,155</td><td>3,321,234</td><td>2,247,977</td><td>4,029,998</td></tr><tr><td>Other long-term obligations — WYCO investment</td><td>121,000</td><td>108,000</td><td>13,000</td><td>—</td><td>—</td></tr><tr><td>Other long-term obligations<sup>(c)</sup></td><td>165,847</td><td>31,589</td><td>42,775</td><td>38,964</td><td>52,519</td></tr><tr><td>Payments to vendors in process</td><td>145,059</td><td>145,059</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Short-term debt</td><td>1,088,560</td><td>1,088,560</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total contractual cash obligations<sup>(d)</sup></td><td>$27,692,439</td><td>$4,997,589</td><td>$5,438,621</td><td>$4,220,312</td><td>$13,035,917</td></tr></table>
(a) Under some leases, Xcel Energy would have to sell or purchase the property that it leases if it chose to terminate before the scheduled lease expiration date. Most of Xcel Energy’s railcar, vehicle and equipment and aircraft leases have these terms. At Dec. 31, 2006, the amount that Xcel Energy would have to pay if it chose to terminate these leases was approximately $176.8 million. In addition, at the end of the equipment leases’ terms, each lease must be extended, equipment purchased for the greater of the fair value or unamortized value or equipment sold to a third party with Xcel Energy making up any deficiency between the sales price and the unamortized value. (b) Included in operating lease payments are $76.6 million, $151.7 million, $124.5 million and $916.6 million, for the less than 1 year, 1-3 years, 4-5 years and after 5 years categories, respectively, pertaining to five purchase power agreements that were accounted for as operating leases. (c) Included in other long-term obligations are tax, penalties and interest related to unrecognized tax benefits recorded according to FIN 48. (d) Xcel Energy and its subsidiaries have contracts providing for the purchase and delivery of a significant portion of its current coal, nuclear fuel and natural gas requirements. Additionally, the utility subsidiaries of Xcel Energy have entered into agreements with utilities and other energy suppliers for purchased power to meet system load and energy requirements, replace generation from company-owned units under maintenance and during outages, and meet operating reserve obligations. Certain contractual purchase obligations are adjusted based on indices. The effects of price changes are mitigated through cost-of-energy adjustment mechanisms. (e) Xcel Energy also has outstanding authority under contracts and blanket purchase orders to purchase up to approximately $1.6 billion of goods and services through the year 2050, in addition to the amounts disclosed in this table and in the forecasted capital expenditures. Xcel Energy has also executed five additional purchase power agreements that are conditional upon achievement of certain conditions, including becoming operational. Estimated payments under these conditional obligations are $52.8 million, $165.7 million, $177.9 million and $1.7 billion, respectively, for the less than 1 year, 1-3 years, 4-5 years and after 5 years categories. Common Stock Dividends — Future dividend levels will be dependent on Xcel Energy’s results of operations, financial position, cash flows and other factors, and will be evaluated by the Xcel Energy board of directors. Xcel Energy’s objective is to increase the annual dividend in the range of 2 percent to 4 percent per year. Xcel Energy’s dividend policy balances: ? Projected cash generation from utility operations; ? Projected capital investment in the utility businesses; ? A reasonable rate of return on shareholder investment; and ? The impact on Xcel Energy’s capital structure and credit ratings. In addition, there are certain statutory limitations that could affect dividend levels. Federal law places certain limits on the ability of public utilities within a holding company system to declare dividends. Specifically, under the Federal Power Act, a public utility may not pay dividends from any funds properly included in a capital account. The cash to pay dividends to Xcel Energy shareholders is primarily derived from dividends received from its utility subsidiaries. The utility subsidiaries are generally limited in the amount of dividends allowed by state regulatory commissions to be paid to the holding company. The limitation is imposed through equity ratio limitations that range from 30 percent to 60 percent. Some utility subsidiaries must comply with bond indenture covenants or restrictions under credit agreements for debt to total capitalization ratios. Results of Operations The following table summarizes the diluted EPS for Xcel Energy and subsidiaries: |
22,716.28571 | What's the average of total loan in 2011? (in million) | RECENT ACCOUNTING PRONOUNCEMENTS See Note 1 Accounting Policies in the Notes To Consolidated Financial Statements in Item 8 of this Report for additional information on the following recent accounting pronouncements that are relevant to our business, including a description of each new pronouncement, the required date of adoption, our planned date of adoption, and the expected impact on our consolidated financial statements. All of the following pronouncements were issued by the FASB unless otherwise noted. The following were issued in 2007: ? SFAS 141(R), “Business Combinations” ? SFAS 160, “Accounting and Reporting of Noncontrolling Interests in Consolidated Financial Statements, an Amendment of ARB No.51” ? In November 2007, the SEC issued Staff Accounting Bulletin No.109, ? In June 2007, the AICPA issued Statement of Position 07-1, “Clarification of the Scope of the Audit and Accounting Guide “Investment Companies” and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies. ” The FASB issued a final FSP in February 2008 which indefinitely delays the effective date of AICPA SOP 07-1. ? FASB Staff Position No. (“FSP”) FIN 46(R) 7, “Application of FASB Interpretation No.46(R) to Investment Companies” ? FSP FIN 48-1, “Definition of Settlement in FASB Interpretation (“FIN”) No.48” ? SFAS 159, “The Fair Value Option for Financial Assets and Financial Liabilities – Including an amendment of FASB Statement No.115” The following were issued during 2006: ? SFAS 158, “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Benefit Plans – an amendment of FASB Statements No.87, 88, 106 and 132(R)”(“SFAS 158”) ? SFAS 157, “Fair Value Measurements” ? FIN 48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No.109” ? FSP FAS 13-2, “Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction” ? SFAS 156, “Accounting for Servicing of Financial Assets – an amendment of FASB Statement No.140” ? SFAS 155, “Accounting for Certain Hybrid Financial Instruments – an amendment of FASB Statements No.133 and 140” ? The Emerging Issues Task Force (“EITF”) of the FASB issued EITF Issue 06-4, “Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements” STATUS OF DEFINED BENEFIT PENSION PLAN We have a noncontributory, qualified defined benefit pension plan (“plan” or “pension plan”) covering eligible employees. Benefits are derived from a cash balance formula based on compensation levels, age and length of service. Pension contributions are based on an actuarially determined amount necessary to fund total benefits payable to plan participants. Consistent with our investment strategy, plan assets are currently approximately 60% invested in equity investments with most of the remainder invested in fixed income instruments. Plan fiduciaries determine and review the plan’s investment policy. We calculate the expense associated with the pension plan in accordance with SFAS 87, “Employers’ Accounting for Pensions,” and we use assumptions and methods that are compatible with the requirements of SFAS 87, including a policy of reflecting trust assets at their fair market value. On an annual basis, we review the actuarial assumptions related to the pension plan, including the discount rate, the rate of compensation increase and the expected return on plan assets. Neither the discount rate nor the compensation increase assumptions significantly affects pension expense. The expected long-term return on assets assumption does significantly affect pension expense. The expected long-term return on plan assets for determining net periodic pension cost for 2007 was 8.25%, unchanged from 2006. Under current accounting rules, the difference between expected long-term returns and actual returns is accumulated and amortized to pension expense over future periods. Each one percentage point difference in actual return compared with our expected return causes expense in subsequent years to change by up to $4 million as the impact is amortized into results of operations. The table below reflects the estimated effects on pension expense of certain changes in assumptions, using 2008 estimated expense as a baseline.
<table><tr><td>Change in Assumption</td><td>EstimatedIncrease to 2008PensionExpense(In millions)</td></tr><tr><td>.5% decrease in discount rate</td><td>$1</td></tr><tr><td>.5% decrease in expected long-term return on assets</td><td>$10</td></tr><tr><td>.5% increase in compensation rate</td><td>$2</td></tr></table>
We currently estimate a pretax pension benefit of $26 million in 2008 compared with a pretax benefit of $30 million in The following tables display the delinquency status of our loans and our nonperforming assets at December 31, 2011 and December 31, 2010. Age Analysis of Past Due Accruing Loans
<table><tr><td></td><td colspan="5">Accruing</td><td></td><td></td><td></td><td></td></tr><tr><td>In millions</td><td>Current or Less Than 30 Days Past Due</td><td>30-59 Days Past Due</td><td>60-89 Days Past Due</td><td>90 Days Or More Past Due</td><td>Total Past Due (a)</td><td>Nonperforming Loans</td><td>Purchased Impaired</td><td>Total Loans</td><td></td></tr><tr><td> December 31, 2011</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$64,437</td><td>$122</td><td>$47</td><td>$49</td><td>$218</td><td>$899</td><td>$140</td><td>$65,694</td><td> </td></tr><tr><td>Commercial real estate</td><td>14,010</td><td>96</td><td>35</td><td>6</td><td>137</td><td>1,345</td><td>712</td><td>16,204</td><td> </td></tr><tr><td>Equipment lease financing</td><td>6,367</td><td>22</td><td>5</td><td></td><td>27</td><td>22</td><td></td><td>6,416</td><td> </td></tr><tr><td>Home equity</td><td>29,288</td><td>173</td><td>114</td><td>221</td><td>508</td><td>529</td><td>2,764</td><td>33,089</td><td> </td></tr><tr><td>Residential real estate (b)</td><td>7,935</td><td>302</td><td>176</td><td>2,281</td><td>2,759</td><td>726</td><td>3,049</td><td>14,469</td><td> </td></tr><tr><td>Credit card</td><td>3,857</td><td>38</td><td>25</td><td>48</td><td>111</td><td>8</td><td></td><td>3,976</td><td> </td></tr><tr><td>Other consumer (c)</td><td>18,355</td><td>265</td><td>145</td><td>368</td><td>778</td><td>31</td><td>2</td><td>19,166</td><td> </td></tr><tr><td>Total</td><td>$144,249</td><td>$1,018</td><td>$547</td><td>$2,973</td><td>$4,538</td><td>$3,560</td><td>$6,667</td><td>$159,014</td><td> </td></tr><tr><td>Percentage of total loans</td><td>90.72%</td><td>.64%</td><td>.34%</td><td>1.87%</td><td>2.85%</td><td>2.24%</td><td>4.19%</td><td>100.00</td><td> %</td></tr><tr><td>December 31, 2010</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$53,273</td><td>$251</td><td>$92</td><td>$59</td><td>$402</td><td>$1,253</td><td>$249</td><td>$55,177</td><td></td></tr><tr><td>Commercial real estate</td><td>14,713</td><td>128</td><td>62</td><td>43</td><td>233</td><td>1,835</td><td>1,153</td><td>17,934</td><td></td></tr><tr><td>Equipment lease financing</td><td>6,276</td><td>37</td><td>2</td><td>1</td><td>40</td><td>77</td><td></td><td>6,393</td><td></td></tr><tr><td>Home equity</td><td>30,334</td><td>159</td><td>91</td><td>174</td><td>424</td><td>448</td><td>3,020</td><td>34,226</td><td></td></tr><tr><td>Residential real estate (b)</td><td>9,150</td><td>331</td><td>225</td><td>2,121</td><td>2,677</td><td>818</td><td>3,354</td><td>15,999</td><td></td></tr><tr><td>Credit card</td><td>3,765</td><td>46</td><td>32</td><td>77</td><td>155</td><td></td><td></td><td>3,920</td><td></td></tr><tr><td>Other consumer (c)</td><td>16,312</td><td>260</td><td>101</td><td>234</td><td>595</td><td>35</td><td>4</td><td>16,946</td><td></td></tr><tr><td>Total</td><td>$133,823</td><td>$1,212</td><td>$605</td><td>$2,709</td><td>$4,526</td><td>$4,466</td><td>$7,780</td><td>$150,595</td><td></td></tr><tr><td>Percentage of total loans</td><td>88.86%</td><td>.81%</td><td>.40%</td><td>1.80%</td><td>3.01%</td><td>2.97%</td><td>5.16%</td><td>100.00%</td><td></td></tr></table>
(a) Past due loan amounts exclude purchased impaired loans as they are considered current loans due to the accretion of interest income. (b) Past due loan amounts at December 31, 2011, include government insured or guaranteed residential real estate mortgages, totaling $.1 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $2.1 billion for 90 days or more past due. Past due loan amounts at December 31, 2010, include government insured or guaranteed residential real estate mortgages, totaling $.1 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $2.0 billion for 90 days or more past due. (c) Past due loan amounts at December 31, 2011, include government insured or guaranteed other consumer loans, totaling $.2 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $.3 billion for 90 days or more past due. Past due loan amounts at December 31, 2010, include government insured or guaranteed other consumer loans, totaling $.2 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $.2 billion for 90 days or more past due. RAYMOND JAMES FINANCIAL, INC. AND SUBSIDIARIES Management's Discussion and Analysis 57 Certain statistical disclosures by bank holding companies As a financial holding company, we are required to provide certain statistical disclosures by bank holding companies pursuant to the SEC’s Industry Guide 3. The following table provides certain of those disclosures for the periods indicated below. The disclosures for years ended September 30, 2016 and 2015 have been revised from those previously reported to conform to our current presentation which includes the impact of the deconsolidation of certain VIEs (see Note 2 of the Notes to Consolidated Financial Statements in this Form 10-K for additional information regarding the deconsolidation).
<table><tr><td></td><td colspan="3">Year ended September 30,</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>RJF return on average assets</td><td>1.9%</td><td>1.9%</td><td>2.0%</td></tr><tr><td>RJF return on average equity</td><td>12.2%</td><td>11.3%</td><td>11.5%</td></tr><tr><td>Average equity to average assets</td><td>15.9%</td><td>16.6%</td><td>17.7%</td></tr><tr><td>Dividend payout ratio</td><td>20.3%</td><td>21.9%</td><td>21.0%</td></tr></table>
RJF return on average assets is computed as net income attributable to RJF for the year indicated, divided by average assets for each respective fiscal year. Average assets is computed by adding the total assets as of each quarter-end date during the indicated fiscal year, plus the beginning of the year total, divided by five. RJF return on average equity is computed by utilizing the net income attributable to RJF for the year indicated, divided by the average equity attributable to RJF for each respective fiscal year. Average equity is computed by adding the total equity attributable to RJF as of each quarter-end date during the indicated fiscal year, plus the beginning of the year total, divided by five. Average equity to average assets is computed as average equity divided by average assets as calculated in the above explanations. Dividend payout ratio is computed as dividends declared per common share during the fiscal year as a percentage of diluted earnings per common share. Refer to the RJ Bank and Risk Management sections of this MD&A and the Notes to Consolidated Financial Statements in this Form 10-K for the other required disclosures. Liquidity and Capital Resources Liquidity is essential to our business. The primary goal of our liquidity management activities is to ensure adequate funding to conduct our business over a range of market environments. Senior management establishes our liquidity and capital management framework. This framework includes senior management’s review of short- and long-term cash flow forecasts, review of monthly capital expenditures, monitoring of the availability of alternative sources of financing, and daily monitoring of liquidity in our significant subsidiaries. Our decisions on the allocation of capital to our business units consider, among other factors, projected profitability and cash flow, risk and impact on future liquidity needs. Our treasury department assists in evaluating, monitoring and controlling the impact that our business activities have on our financial condition, liquidity and capital structure and maintains our relationships with various lenders. The objective of this framework is to support the successful execution of our business strategies while ensuring ongoing and sufficient liquidity. Liquidity is provided primarily through our business operations and financing activities. Financing activities could include bank borrowings, repurchase agreement transactions or additional capital raising activities under our universal shelf registration statement. Cash provided by operating activities during the year ended September 30, 2017 was $1.31 billion. In addition to operating cash flows related to net income, other increases in cash from operations included: ? A $1.43 billion decrease in assets segregated pursuant to regulations and other segregated assets, primarily resulting from the decrease in client cash balances in part due to a significant number of client accounts from the September 2016 Alex. Brown acquisition electing into our RJBDP program during the current fiscal year. ? $189 million of proceeds from sales of securitizations and loans held for sale, net of purchases and originations of loans and securitizations. ? Accrued compensation, commissions and benefits increased $160 million as a result of the increased financial results we achieved in fiscal year 2017. |
1 | What is the percentage of all Shares that are positive to the total amount, in 2017? | Part II Item 5—Market for Registrant’s Common Equity and Related Stockholder Matters Market Information. The common stock of the Company is currently traded on the New York Stock Exchange (NYSE) under the symbol ‘‘AES. ’’ The following tables set forth the high and low sale prices for the common stock as reported by the NYSE for the periods indicated.
<table><tr><td>2002</td><td>High</td><td>Low</td><td>2001</td><td>High</td><td>Low</td></tr><tr><td>First Quarter</td><td>$17.84</td><td>$4.11</td><td>First Quarter</td><td>$60.15</td><td>$41.30</td></tr><tr><td>Second Quarter</td><td>9.17</td><td>3.55</td><td>Second Quarter</td><td>52.25</td><td>39.95</td></tr><tr><td>Third Quarter</td><td>4.61</td><td>1.56</td><td>Third Quarter</td><td>44.50</td><td>12.00</td></tr><tr><td>Fourth Quarter</td><td>3.57</td><td>0.95</td><td>Fourth Quarter</td><td>17.80</td><td>11.60</td></tr></table>
Holders. As of March 3, 2003, there were 9,663 record holders of the Company’s Common Stock, par value $0.01 per share. Dividends. Under the terms of the Company’s senior secured credit facilities entered into with a commercial bank syndicate, the Company is not allowed to pay cash dividends. In addition, the Company is precluded from paying cash dividends on its Common Stock under the terms of a guaranty to the utility customer in connection with the AES Thames project in the event certain net worth and liquidity tests of the Company are not met. The ability of the Company’s project subsidiaries to declare and pay cash dividends to the Company is subject to certain limitations in the project loans, governmental provisions and other agreements entered into by such project subsidiaries. Securities Authorized for Issuance under Equity Compensation Plans. See the information contained under the caption ‘‘Securities Authorized for Issuance under Equity Compensation Plans’’ of the Proxy Statement for the Annual Meeting of Stockholders of the Registrant to be held on May 1, 2003, which information is incorporated herein by reference. Key actuarial assumptions contain no explicit provisions for reserve uncertainty nor does the Company supplement the actuarially determined reserves for uncertainty. Carried reserves at each reporting date are the Company’s best estimate of ultimate unpaid losses and LAE at that date. The Company completes detailed reserve studies for each exposure group annually for both reinsurance and insurance operations. The completed annual reserve studies are “rolled-forward” for each accounting period until the subsequent reserve study is completed. Analyzing the roll-forward process involves comparing actual reported losses to expected losses based on the most recent reserve study. The Company analyzes significant variances between actual and expected losses and post adjustments to its reserves as warranted. The Company continues to receive claims under expired insurance and reinsurance contracts asserting injuries and/or damages relating to or resulting from environmental pollution and hazardous substances, including asbestos. Environmental claims typically assert liability for (a) the mitigation or remediation of environmental contamination or (b) bodily injury or property damage caused by the release of hazardous substances into the land, air or water. Asbestos claims typically assert liability for bodily injury from exposure to asbestos or for property damage resulting from asbestos or products containing asbestos. The Company’s reserves include an estimate of the Company’s ultimate liability for A&E claims. The Company’s A&E liabilities emanate from Mt. McKinley’s direct insurance business and Everest Re’s assumed reinsurance business. All of the contracts of insurance and reinsurance, under which the Company has received claims during the past three years, expired more than 20 years ago. There are significant uncertainties surrounding the Company’s reserves for its A&E losses. A&E exposures represent a separate exposure group for monitoring and evaluating reserve adequacy. The following table summarizes incurred losses with respect to A&E reserves on both a gross and net of reinsurance basis for the periods indicated:
<table><tr><td></td><td colspan="3">At December 31,</td></tr><tr><td>(Dollars in thousands)</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Gross basis:</td><td></td><td></td><td></td></tr><tr><td>Beginning of period reserves</td><td>$441,111</td><td>$433,117</td><td>$476,205</td></tr><tr><td>Incurred losses</td><td>90,009</td><td>73,336</td><td>40,000</td></tr><tr><td>Paid losses</td><td>-82,126</td><td>-65,342</td><td>-83,088</td></tr><tr><td>End of period reserves</td><td>$448,994</td><td>$441,111</td><td>$433,117</td></tr><tr><td>Net basis:</td><td></td><td></td><td></td></tr><tr><td>Beginning of period reserves</td><td>$319,072</td><td>$319,620</td><td>$458,211</td></tr><tr><td>Incurred losses</td><td>37,137</td><td>53,909</td><td>38,440</td></tr><tr><td>Paid losses</td><td>-38,128</td><td>-54,457</td><td>-177,031</td></tr><tr><td>End of period reserves</td><td>$318,081</td><td>$319,072</td><td>$319,620</td></tr></table>
On July 13, 2015, the Company sold Mt. McKinley, a Delaware domiciled insurance company and whollyowned subsidiary of the Company to Clearwater Insurance Company, a Delaware domiciled insurance company. Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater Insurance Company. Per the retrocession treaty, the Company retroceded 100% of the liabilities associated with certain Mt. McKinley policies, which related entirely to A&E business and had been reinsured by Bermuda Re. As consideration for entering into the retrocession treaty, Everest Re Bermuda transferred cash of $140,279 thousand, an amount equal to the net loss reserves as of the closing date. The maximum liability retroceded under the retrocession treaty will be $440,279 thousand, equal to the retrocession payment plus $300,000 thousand. The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty. The following table summarizes information about share options outstanding for the period indicated:
<table><tr><td></td><td colspan="5">At December 31, 2017</td></tr><tr><td></td><td colspan="3">Options Outstanding</td><td colspan="2">Options Exercisable</td></tr><tr><td></td><td></td><td>Weighted-</td><td></td><td></td><td></td></tr><tr><td></td><td></td><td>Average</td><td>Weighted-</td><td></td><td>Weighted-</td></tr><tr><td></td><td>Number</td><td>Remaining</td><td>Average</td><td>Number</td><td>Average</td></tr><tr><td>Range of</td><td>Outstanding</td><td>Contractual</td><td>Exercise</td><td>Exercisable</td><td>Exercise</td></tr><tr><td>Exercise Prices</td><td>at 12/31/17</td><td>Life</td><td>Price</td><td>at 12/31/17</td><td>Price</td></tr><tr><td>$71.7150 - $78.1700</td><td>79,760</td><td>1.1</td><td>$71.72</td><td>79,760</td><td>$71.72</td></tr><tr><td>$78.1800 - $85.6300</td><td>61,900</td><td>2.1</td><td>84.63</td><td>61,900</td><td>84.63</td></tr><tr><td>$85.6400 - $87.4700</td><td>88,590</td><td>3.1</td><td>86.62</td><td>88,590</td><td>86.62</td></tr><tr><td>$87.4800 - $89.4100</td><td>110,060</td><td>4.1</td><td>88.32</td><td>110,060</td><td>88.32</td></tr><tr><td>$89.4200 - $110.1300</td><td>20,054</td><td>1.1</td><td>97.41</td><td>20,054</td><td>97.41</td></tr><tr><td></td><td>360,364</td><td>2.7</td><td>84.10</td><td>360,364</td><td>84.10</td></tr></table>
The following table summarizes the status of the Company’s non-vested shares and changes for the periods indicated:
<table><tr><td></td><td colspan="6">Years Ended December 31,</td></tr><tr><td></td><td colspan="2">2017</td><td colspan="2">2016</td><td colspan="2">2015</td></tr><tr><td></td><td></td><td>Weighted-</td><td></td><td>Weighted-</td><td></td><td>Weighted-</td></tr><tr><td></td><td></td><td>Average</td><td></td><td>Average</td><td></td><td>Average</td></tr><tr><td></td><td></td><td>Grant Date</td><td></td><td>Grant Date</td><td></td><td>Grant Date</td></tr><tr><td>Restricted (non-vested) Shares</td><td>Shares</td><td>Fair Value</td><td>Shares</td><td>Fair Value</td><td>Shares</td><td>Fair Value</td></tr><tr><td>Outstanding at January 1,</td><td>435,338</td><td>$164.21</td><td>435,336</td><td>$143.02</td><td>467,745</td><td>$120.84</td></tr><tr><td>Granted</td><td>160,185</td><td>234.01</td><td>173,546</td><td>186.37</td><td>156,262</td><td>178.80</td></tr><tr><td>Vested</td><td>152,397</td><td>151.80</td><td>145,834</td><td>130.54</td><td>154,387</td><td>113.12</td></tr><tr><td>Forfeited</td><td>21,865</td><td>187.82</td><td>27,710</td><td>147.32</td><td>34,284</td><td>138.19</td></tr><tr><td>Outstanding at December 31,</td><td>421,261</td><td>194.01</td><td>435,338</td><td>164.21</td><td>435,336</td><td>143.02</td></tr></table>
As of December 31, 2017, there was $56,981 thousand of total unrecognized compensation cost related to non-vested share-based compensation expense. That cost is expected to be recognized over a weightedaverage period of 3.1 years. The total fair value of shares vested during the years ended December 31, 2017, 2016 and 2015, was $23,134 thousand, $19,037 thousand and $17,464 thousand, respectively. The tax benefit realized from the shares vested for the year ended December 31, 2017 was $10,130 thousand. In addition to the 2010 Employee Plan, the 2009 Director Plan and the 2003 Director Plan, Group issued 404 common shares in 2017, 547 common shares in 2016 and 426 common shares in 2015 to the Company’s non-employee directors as compensation for their service as directors. These issuances had aggregate values of approximately $94 thousand, $103 thousand and $75 thousand, respectively. Since its 1995 initial public offering, the Company has issued to certain key employees of the Company 2,141,557 restricted common shares, of which 280,452 restricted shares have been cancelled. The Company has issued to non-employee directors of the Company 145,817 restricted common shares, of which no restricted shares have been cancelled. The Company acquired 60,453, 70,010 and 82,277 common shares at a cost of $14,240 thousand, $12,111 thousand and $14,666 thousand in 2017, 2016 and 2015, respectively, from employees and non-employee directors who chose to pay required withholding taxes and/or the exercise cost on option exercises or restricted share vestings by withholding shares. The Company’s loss reserving methodologies continuously monitor the emergence of loss and loss development trends, seeking, on a timely basis, to both adjust reserves for the impact of trend shifts and to factor the impact of such shifts into the Company’s underwriting and pricing on a prospective basis. Reserves for Asbestos and Environmental Losses and LAE. At December 31, 2017, the Company’s gross reserves for A&E claims represented 3.8% of its total reserves. The Company’s A&E liabilities stem from Mt. McKinley’s direct insurance business and Everest Re’s assumed reinsurance business. Liabilities related to Mt. McKinley’s direct business, which had been ceded to Bermuda Re previously, were retroceded to an affiliate of Clearwater Insurance Company in July 2015, concurrent with the sale of Mt. McKinley to Clearwater Insurance Company. There are significant uncertainties in estimating the amount of the Company’s potential losses from A&E claims and ultimate values cannot be estimated using traditional reserving techniques. See ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asbestos and Environmental Exposures” and Item 8, “Financial Statements and Supplementary Data” - Note 3 of Notes to Consolidated Financial Statements. The following table summarizes the composition of the Company’s total reserves for A&E losses, gross and net of reinsurance, for the periods indicated:
<table><tr><td></td><td colspan="3">Years Ended December 31,</td></tr><tr><td>(Dollars in millions)</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Gross reserves</td><td>$449.0</td><td>$441.1</td><td>$433.1</td></tr><tr><td>Reinsurance receivable</td><td>-130.9</td><td>-122.0</td><td>-113.5</td></tr><tr><td>Net reserves</td><td>$318.1</td><td>$319.1</td><td>$319.6</td></tr><tr><td>(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td></tr></table>
On July 13, 2015, the Company sold Mt. McKinley to Clearwater Insurance Company. Concurrently with the closing, the Company entered into a retrocession treaty with an affiliate of Clearwater. Per the retrocession treaty, the Company retroceded 100% of the liabilities associated with certain Mt. McKinley policies, which had been reinsured by Bermuda Re. As consideration for entering into the retrocession treaty, Bermuda Re transferred cash of $140.3 million, an amount equal to the net loss reserves as of the closing date. Of the $140.3 million of net loss reserves retroceded, $100.5 million were related to A&E business. The maximum liability retroceded under the retrocession treaty will be $440.3 million, equal to the retrocession payment plus $300.0 million. The Company will retain liability for any amounts exceeding the maximum liability retroceded under the retrocession treaty. In 2017, during its normal exposure analysis, the Company increased its net A&E reserves by $37.1 million, all of which related to its assumed reinsurance business. Additional losses, including those relating to latent injuries and other exposures, which are as yet unrecognized, the type or magnitude of which cannot be foreseen by either the Company or the industry, may emerge in the future. Such future emergence could have material adverse effects on the Company’s future financial condition, results of operations and cash flows. Future Policy Benefit Reserves. The Company wrote a limited amount of life and annuity reinsurance in its Bermuda segment. Future policy benefit liabilities for annuities are reported at the accumulated fund balance of these contracts. Reserves for those liabilities include mortality provisions with respect to life and annuity claims, both reported and unreported. Actual experience in a particular period may be worse than assumed experience and, consequently, may adversely affect the Company’s operating results for that period. See ITEM 8, “Financial Statements and Supplementary Data” - Note 1F of Notes to Consolidated Financial Statements. |
0.38342 | by how much did net rental expense increase from 2006 to 2008? | MARATHON OIL CORPORATION Notes to Consolidated Financial Statements Operating lease rental expense was:
<table><tr><td><i>(In millions)</i></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Minimum rental<sup>(a)</sup></td><td>$245</td><td>$209</td><td>$172</td></tr><tr><td>Contingent rental</td><td>22</td><td>33</td><td>28</td></tr><tr><td>Sublease rentals</td><td>–</td><td>–</td><td>-7</td></tr><tr><td>Net rental expense</td><td>$267</td><td>$242</td><td>$193</td></tr></table>
(a) Excludes $5 million, $8 million and $9 million paid by United States Steel in 2008, 2007 and 2006 on assumed leases.27. Contingencies and Commitments We are the subject of, or party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment. Certain of these matters are discussed below. The ultimate resolution of these contingencies could, individually or in the aggregate, be material to our consolidated financial statements. However, management believes that we will remain a viable and competitive enterprise even though it is possible that these contingencies could be resolved unfavorably. Environmental matters – We are subject to federal, state, local and foreign laws and regulations relating to the environment. These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites. Penalties may be imposed for noncompliance. At December 31, 2008 and 2007, accrued liabilities for remediation totaled $111 million and $108 million. It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties that may be imposed. Receivables for recoverable costs from certain states, under programs to assist companies in clean-up efforts related to underground storage tanks at retail marketing outlets, were $60 and $66 million at December 31, 2008 and 2007. We are a defendant, along with other refining companies, in 20 cases arising in three states alleging damages for methyl tertiary-butyl ether (“MTBE”) contamination. We have also received seven Toxic Substances Control Act notice letters involving potential claims in two states. Such notice letters are often followed by litigation. Like the cases that were settled in 2008, the remaining MTBE cases are consolidated in a multidistrict litigation in the Southern District of New York for pretrial proceedings. Nineteen of the remaining cases allege damages to water supply wells, similar to the damages claimed in the settled cases. In the other remaining case, the State of New Jersey is seeking natural resources damages allegedly resulting from contamination of groundwater by MTBE. This is the only MTBE contamination case in which we are a defendant and natural resources damages are sought. We are vigorously defending these cases. We, along with a number of other defendants, have engaged in settlement discussions related to the majority of the cases in which we are a defendant. We do not expect our share of liability, if any, for the remaining cases to significantly impact our consolidated results of operations, financial position or cash flows. A lawsuit filed in the United States District Court for the Southern District of West Virginia alleges that our Catlettsburg, Kentucky, refinery distributed contaminated gasoline to wholesalers and retailers for a period prior to August, 2003, causing permanent damage to storage tanks, dispensers and related equipment, resulting in lost profits, business disruption and personal and real property damages. Following the incident, we conducted remediation operations at affected facilities, and we deny that any permanent damages resulted from the incident. Class action certification was granted in August 2007. We have entered into a tentative settlement agreement in this case. Notice of the proposed settlement has been sent to the class members. Approval by the court after a fairness hearing is required before the settlement can be finalized. The fairness hearing is scheduled in the first quarter of 2009. The proposed settlement will not significantly impact our consolidated results of operations, financial position or cash flows. Guarantees – We have provided certain guarantees, direct and indirect, of the indebtedness of other companies. Under the terms of most of these guarantee arrangements, we would be required to perform should the guaranteed party fail to fulfill its obligations under the specified arrangements. In addition to these financial guarantees, we also have various performance guarantees related to specific agreements. Supplementary Information on Oil and Gas Producing Activities (Unaudited) CONTINUED Results of Operations for Oil and Gas Producing Activities
<table><tr><td colspan="2"><i>(In millions)</i></td><td>United States</td><td>Europe</td><td>Africa</td><td>Other Int’l</td><td>Total</td></tr><tr><td>2008</td><td>Revenues and other income:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Sales<sup>(a)</sup></td><td>$2,619</td><td>$1,283</td><td>$1,930</td><td>$–</td><td>$5,832</td></tr><tr><td></td><td>Transfers</td><td>547</td><td>1,062</td><td>1,170</td><td>–</td><td>2,779</td></tr><tr><td></td><td>Other income<sup>(b)</sup></td><td>1</td><td>254</td><td>–</td><td>–</td><td>255</td></tr><tr><td></td><td>Total revenues</td><td>3,167</td><td>2,599</td><td>3,100</td><td>–</td><td>8,866</td></tr><tr><td></td><td>Expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Production costs</td><td>-692</td><td>-319</td><td>-145</td><td>–</td><td>-1,156</td></tr><tr><td></td><td>Transportation costs</td><td>-153</td><td>-59</td><td>-36</td><td>–</td><td>-248</td></tr><tr><td></td><td>Exploration expenses</td><td>-238</td><td>-88</td><td>-47</td><td>-117</td><td>-490</td></tr><tr><td></td><td>Depreciation, depletion and amortization</td><td>-671</td><td>-512</td><td>-144</td><td>-1</td><td>-1,328</td></tr><tr><td></td><td>Administrative expenses</td><td>-49</td><td>-15</td><td>-5</td><td>-37</td><td>-106</td></tr><tr><td></td><td>Total expenses</td><td>-1,803</td><td>-993</td><td>-377</td><td>-155</td><td>-3,328</td></tr><tr><td></td><td>Other production-related income (loss)<sup>(c)</sup></td><td>-1</td><td>35</td><td>1</td><td>–</td><td>35</td></tr><tr><td></td><td>Results before income taxes</td><td>1,363</td><td>1,641</td><td>2,724</td><td>-155</td><td>5,573</td></tr><tr><td></td><td>Income tax (provision) benefit</td><td>-516</td><td>-598</td><td>-1,892</td><td>58</td><td>-2,948</td></tr><tr><td></td><td>Results of continuing operations</td><td>$847</td><td>$1,043</td><td>$832</td><td>$-97</td><td>$2,625</td></tr><tr><td>2007</td><td>Revenues and other income:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Sales<sup>(a)</sup></td><td>$2,110</td><td>$1,198</td><td>$1,380</td><td>$–</td><td>$4,688</td></tr><tr><td></td><td>Transfers</td><td>299</td><td>60</td><td>1,031</td><td>–</td><td>1,390</td></tr><tr><td></td><td>Other income<sup>(b)</sup></td><td>3</td><td>–</td><td>2</td><td>7</td><td>12</td></tr><tr><td></td><td>Total revenues</td><td>2,412</td><td>1,258</td><td>2,413</td><td>7</td><td>6,090</td></tr><tr><td></td><td>Expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Production costs</td><td>-550</td><td>-234</td><td>-164</td><td>–</td><td>-948</td></tr><tr><td></td><td>Transportation costs</td><td>-122</td><td>-39</td><td>-28</td><td>–</td><td>-189</td></tr><tr><td></td><td>Exploration expenses</td><td>-274</td><td>-23</td><td>-118</td><td>-37</td><td>-452</td></tr><tr><td></td><td>Depreciation, depletion and amortization</td><td>-486</td><td>-278</td><td>-130</td><td>–</td><td>-894</td></tr><tr><td></td><td>Administrative expenses</td><td>-56</td><td>-11</td><td>-6</td><td>-34</td><td>-107</td></tr><tr><td></td><td>Total expenses</td><td>-1,488</td><td>-585</td><td>-446</td><td>-71</td><td>-2,590</td></tr><tr><td></td><td>Other production-related income<sup>(c)</sup></td><td>–</td><td>103</td><td>6</td><td>–</td><td>109</td></tr><tr><td></td><td>Results before income taxes</td><td>924</td><td>776</td><td>1,973</td><td>-64</td><td>3,609</td></tr><tr><td></td><td>Income tax (provision) benefit</td><td>-343</td><td>-377</td><td>-1,368</td><td>24</td><td>-2,064</td></tr><tr><td></td><td>Results of continuing operations</td><td>$581</td><td>$399</td><td>$605</td><td>$-40</td><td>$1,545</td></tr><tr><td></td><td>Results of discontinued operations</td><td>$–</td><td>$–</td><td>$–</td><td>$8</td><td>$8</td></tr><tr><td>2006</td><td>Revenues and other income:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Sales<sup>(a)</sup></td><td>$2,329</td><td>$1,240</td><td>$1,300</td><td>$–</td><td>$4,869</td></tr><tr><td></td><td>Transfers</td><td>307</td><td>58</td><td>1,168</td><td>–</td><td>1,533</td></tr><tr><td></td><td>Other income<sup>(b)</sup></td><td>3</td><td>–</td><td>–</td><td>46</td><td>49</td></tr><tr><td></td><td>Total revenues</td><td>2,639</td><td>1,298</td><td>2,468</td><td>46</td><td>6,451</td></tr><tr><td></td><td>Expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Production costs</td><td>-512</td><td>-207</td><td>-126</td><td>–</td><td>-845</td></tr><tr><td></td><td>Transportation costs</td><td>-124</td><td>-44</td><td>-33</td><td>–</td><td>-201</td></tr><tr><td></td><td>Exploration expenses</td><td>-169</td><td>-29</td><td>-91</td><td>-73</td><td>-362</td></tr><tr><td></td><td>Depreciation, depletion and amortization</td><td>-458</td><td>-281</td><td>-127</td><td>–</td><td>-866</td></tr><tr><td></td><td>Administrative expenses</td><td>-41</td><td>-10</td><td>-6</td><td>-36</td><td>-93</td></tr><tr><td></td><td>Total expenses</td><td>-1,304</td><td>-571</td><td>-383</td><td>-109</td><td>-2,367</td></tr><tr><td></td><td>Other production-related income<sup>(c)</sup></td><td>–</td><td>73</td><td>1</td><td>–</td><td>74</td></tr><tr><td></td><td>Results before income taxes</td><td>1,335</td><td>800</td><td>2,086</td><td>-63</td><td>4,158</td></tr><tr><td></td><td>Income tax (provision) benefit</td><td>-489</td><td>-358</td><td>-1,457</td><td>4</td><td>-2,300</td></tr><tr><td></td><td>Results of continuing operations</td><td>$846</td><td>$442</td><td>$629</td><td>$-59</td><td>$1,858</td></tr><tr><td></td><td>Results of discontinued operations</td><td>$–</td><td>$–</td><td>$–</td><td>$273</td><td>$273</td></tr></table>
(a) Excludes noncash effects of changes in the fair value of certain natural gas sales contracts in the United Kingdom. (b) Includes net gain on disposal of assets. (c) Includes revenues, net of associated costs, from activities that are an integral part of our production operations which may include processing or transportation of third-party production, the purchase and subsequent resale of natural gas utilized for reservoir management and providing storage capacity. Supplementary Information on Oil and Gas Producing Activities (Unaudited) CONTINUED Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
<table><tr><td><i>(In millions)</i></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Sales and transfers of oil and gas produced, net of production, transportation and administrative costs</td><td>$-7,141</td><td>$-4,887</td><td>$-5,312</td></tr><tr><td>Net changes in prices and production, transportation and administrative costs related to future production</td><td>-18,290</td><td>12,845</td><td>-1,342</td></tr><tr><td>Extensions, discoveries and improved recovery, less related costs</td><td>663</td><td>1,816</td><td>1,290</td></tr><tr><td>Development costs incurred during the period</td><td>1,916</td><td>1,654</td><td>1,251</td></tr><tr><td>Changes in estimated future development costs</td><td>-1,584</td><td>-1,727</td><td>-527</td></tr><tr><td>Revisions of previous quantity estimates</td><td>53</td><td>290</td><td>1,319</td></tr><tr><td>Net changes in purchases and sales of minerals in place</td><td>-13</td><td>23</td><td>30</td></tr><tr><td>Accretion of discount</td><td>2,796</td><td>1,726</td><td>1,882</td></tr><tr><td>Net change in income taxes</td><td>12,805</td><td>-6,751</td><td>-660</td></tr><tr><td>Timing and other</td><td>-96</td><td>-12</td><td>-14</td></tr><tr><td>Net change for the year</td><td>-8,891</td><td>4,977</td><td>-2,083</td></tr><tr><td>Beginning of the year</td><td>13,495</td><td>8,518</td><td>10,601</td></tr><tr><td>End of year</td><td>$4,604</td><td>$13,495</td><td>$8,518</td></tr><tr><td>Net change for the year from discontinued operations</td><td>$–</td><td>$–</td><td>$-216</td></tr></table>
our refineries processed 944 mbpd of crude oil and 207 mbpd of other charge and blend stocks. The table below sets forth the location and daily crude oil refining capacity of each of our refineries as of December 31, 2008.
<table><tr><td><i>(Thousands of barrels per day)</i></td><td>2008</td></tr><tr><td>Garyville, Louisiana</td><td>256</td></tr><tr><td>Catlettsburg, Kentucky</td><td>226</td></tr><tr><td>Robinson, Illinois</td><td>204</td></tr><tr><td>Detroit, Michigan</td><td>102</td></tr><tr><td>Canton, Ohio</td><td>78</td></tr><tr><td>Texas City, Texas</td><td>76</td></tr><tr><td>St. Paul Park, Minnesota</td><td>74</td></tr><tr><td>TOTAL</td><td>1,016</td></tr></table>
Our refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units. The refineries process a wide variety of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blendgrade gasolines intended for blending with fuel ethanol and ultra-low sulfur diesel fuel, to heavy fuel oil and asphalt. Additionally, we manufacture aromatics, cumene, propane, propylene, sulfur and maleic anhydride. Our refineries are integrated with each other via pipelines, terminals and barges to maximize operating efficiency. The transportation links that connect our refineries allow the movement of intermediate products between refineries to optimize operations, produce higher margin products and utilize our processing capacity efficiently. Our Garyville, Louisiana, refinery is located along the Mississippi River in southeastern Louisiana. The Garyville refinery processes heavy sour crude oil into products such as gasoline, distillates, sulfur, asphalt, propane, polymer grade propylene, isobutane and coke. In 2006, we approved an expansion of our Garyville refinery by 180 mbpd to 436 mbpd, with a currently projected cost of $3.35 billion (excluding capitalized interest). Construction commenced in early 2007 and is continuing on schedule. We estimate that, as of December 31, 2008, this project is approximately 75 percent complete. We expect to complete the expansion in late 2009. Our Catlettsburg, Kentucky, refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence with the Ohio River. The Catlettsburg refinery processes sweet and sour crude oils into products such as gasoline, asphalt, diesel, jet fuel, petrochemicals, propane, propylene and sulfur. Our Robinson, Illinois, refinery is located in the southeastern Illinois town of Robinson. The Robinson refinery processes sweet and sour crude oils into products such as multiple grades of gasoline, jet fuel, kerosene, diesel fuel, propane, propylene, sulfur and anode-grade coke. Our Detroit, Michigan, refinery is located near Interstate 75 in southwest Detroit. The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products such as gasoline, diesel, asphalt, slurry, propane, chemical grade propylene and sulfur. In 2007, we approved a heavy oil upgrading and expansion project at our Detroit, Michigan, refinery, with a current projected cost of $2.2 billion (excluding capitalized interest). This project will enable the refinery to process additional heavy sour crude oils, including Canadian bitumen blends, and will increase its crude oil refining capacity by about 15 percent. Construction began in the first half of 2008 and is presently expected to be complete in mid-2012. Our Canton, Ohio, refinery is located approximately 60 miles southeast of Cleveland, Ohio. The Canton refinery processes sweet and sour crude oils into products such as gasoline, diesel fuels, kerosene, propane, sulfur, asphalt, roofing flux, home heating oil and No.6 industrial fuel oil. Our Texas City, Texas, refinery is located on the Texas gulf coast approximately 30 miles south of Houston, Texas. The refinery processes sweet crude oil into products such as gasoline, propane, chemical grade propylene, slurry, sulfur and aromatics. Our St. Paul Park, Minnesota, refinery is located in St. Paul Park, a suburb of Minneapolis-St. Paul. The St. Paul Park refinery processes predominantly Canadian crude oils into products such as gasoline, diesel, jet fuel, kerosene, asphalt, propane, propylene and sulfur. a more complete explanation of our strategies to manage market risk related to commodity prices, see Quantitative and Qualitative Disclosures about Market Risk. We averaged 944 mbpd of crude oil throughput in 2008 and 1,010 mbpd in 2007. Total refinery throughputs averaged 1,151 mbpd in 2008 compared to 1,224 mbpd in 2007. Crude and total throughputs were lower in 2008 than in 2007 in part due to the effect Hurricane Gustav and Ike had on U. S. Gulf Coast operations in 2008. The following table includes certain key operating statistics for the RM&T segment for 2008 and 2007.
<table><tr><td> RM&T Operating Statistics</td><td>2008</td><td>2007</td></tr><tr><td>Refining and wholesale marketing gross margin<i>(Dollars per gallon)</i><sup>(a)</sup></td><td>$0.1166</td><td>$0.1848</td></tr><tr><td>Refined products sales volumes<i>(Thousands of barrels per day)</i></td><td>1,352</td><td>1,410</td></tr></table>
(a) Sales revenue less cost of refinery inputs (including transportation), purchased products and manufacturing expenses, including depreciation. IG segment income increased $170 million, or 129 percent in 2008 from 2007. The increase in income was primarily related to a full year of operation of the LNG production facility in Equatorial Guinea, which commenced operations in May 2007. We hold a 60 percent interest in the facility. Segment expenses increased slightly in 2008 as we continue to develop new technologies. In 2008, we spent $92 million on gas commercialization technologies, including completing construction of a gas-to-fuels demonstration plant. Such expense in 2007 was $42 million. Consolidated Results of Operations: 2007 compared to 2006 Revenues are summarized in the following table |
8,703 | What was the total amount of the adjusted profit in the years / sections where profit of profit before taxes is greater than 5000? (in million) | ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our discussion of cautionary statements and significant risks to the company’s business under Item 1A. Risk Factors of the 2018 Form?10-K. OVERVIEW Our sales and revenues for 2018 were $54.722 billion, a 20?percent increase from 2017 sales and revenues of $45.462?billion. The increase was primarily due to higher sales volume, mostly due to improved demand across all regions and across the three primary segments. Profit per share for 2018 was $10.26, compared to profit per share of $1.26 in 2017. Profit was $6.147 billion in 2018, compared with $754 million in 2017. The increase was primarily due to lower tax expense, higher sales volume, decreased restructuring costs and improved price realization. The increase was partially offset by higher manufacturing costs and selling, general and administrative (SG&A) and research and development (R&D) expenses and lower profit from the Financial Products Segment. Fourth-quarter 2018 sales and revenues were $14.342 billion, up $1.446 billion, or 11 percent, from $12.896 billion in the fourth quarter of 2017. Fourth-quarter 2018 profit was $1.78 per share, compared with a loss of $2.18 per share in the fourth quarter of 2017. Fourth-quarter 2018 profit was $1.048 billion, compared with a loss of $1.299 billion in 2017. Highlights for 2018 include: z Sales and revenues in 2018 were $54.722 billion, up 20?percent from 2017. Sales improved in all regions and across the three primary segments. z Operating profit as a percent of sales and revenues was 15.2?percent in 2018, compared with 9.8 percent in 2017. Adjusted operating profit margin was 15.9 percent in 2018, compared with 12.5 percent in 2017. z Profit was $10.26 per share for 2018, and excluding the items in the table below, adjusted profit per share was $11.22. For 2017 profit was $1.26 per share, and excluding the items in the table below, adjusted profit per share was $6.88. z In order for our results to be more meaningful to our readers, we have separately quantified the impact of several significant items:
<table><tr><td></td><td colspan="2">Full Year 2018</td><td colspan="2">Full Year 2017</td></tr><tr><td>(Millions of dollars)</td><td>Profit Before Taxes</td><td>ProfitPer Share</td><td>Profit Before Taxes</td><td>ProfitPer Share</td></tr><tr><td>Profit</td><td>$7,822</td><td>$10.26</td><td>$4,082</td><td>$1.26</td></tr><tr><td>Restructuring costs</td><td>386</td><td>0.50</td><td>1,256</td><td>1.68</td></tr><tr><td>Mark-to-market losses</td><td>495</td><td>0.64</td><td>301</td><td>0.26</td></tr><tr><td>Deferred tax valuation allowance adjustments</td><td>—</td><td>-0.01</td><td>—</td><td>-0.18</td></tr><tr><td>U.S. tax reform impact</td><td>—</td><td>-0.17</td><td>—</td><td>3.95</td></tr><tr><td>Gain on sale of equity investment</td><td>—</td><td>—</td><td>-85</td><td>-0.09</td></tr><tr><td>Adjusted profit</td><td>$8,703</td><td>$11.22</td><td>$5,554</td><td>$6.88</td></tr></table>
z Machinery, Energy & Transportation (ME&T) operating cash flow for 2018 was about $6.3 billion, more than sufficient to cover capital expenditures and dividends. ME&T operating cash flow for 2017 was about $5.5 billion. Restructuring Costs In recent years, we have incurred substantial restructuring costs to achieve a flexible and competitive cost structure. During 2018, we incurred $386 million of restructuring costs related to restructuring actions across the company. During 2017, we incurred $1.256 billion of restructuring costs with about half related to the closure of the facility in Gosselies, Belgium, and the remainder related to other restructuring actions across the company. Although we expect restructuring to continue as part of ongoing business activities, restructuring costs should be lower in 2019 than 2018. Notes: z Glossary of terms included on pages 33-34; first occurrence of terms shown in bold italics. z Information on non-GAAP financial measures is included on pages 42-43. Recognition of finance revenue and rental revenue is suspended and the account is placed on non-accrual status when management determines that collection of future income is not probable (generally after 120 days past due). Recognition is resumed, and previously suspended income is recognized, when the account becomes current and collection of remaining amounts is considered probable. See Note 7 for more information. Revenues are presented net of sales and other related taxes.3. Stock-Based Compensation Our stock-based compensation plans primarily provide for the granting of stock options, stock-settled stock appreciation rights (SARs), restricted stock units (RSUs) and performance-based restricted stock units (PRSUs) to Officers and other key employees, as well as non-employee Directors. Stock options permit a holder to buy Caterpillar stock at the stock’s price when the option was granted. SARs permit a holder the right to receive the value in shares of the appreciation in Caterpillar stock that occurred from the date the right was granted up to the date of exercise. RSUs are agreements to issue shares of Caterpillar stock at the time of vesting. PRSUs are similar to RSUs and include performance conditions in the vesting terms of the award. Our long-standing practices and policies specify that all stockbased compensation awards are approved by the Compensation Committee (the Committee) of the Board of Directors. The award approval process specifies the grant date, value and terms of the award. The same terms and conditions are consistently applied to all employee grants, including Officers. The Committee approves all individual Officer grants. The number of stock-based compensation award units included in an individual’s award is determined based on the methodology approved by the Committee. The exercise price methodology?approved by the Committee is the closing price of the Company stock on the date of the grant. In June of 2014, shareholders approved the Caterpillar Inc. 2014 Long-Term Incentive Plan (the Plan) under which all new stock-based compensation awards are granted. In June of 2017, the Plan was amended and restated. The Plan initially provided that up to 38,800,000 Common Shares would be reserved for future issuance under the Plan, subject to adjustment in certain events. Subsequent to the shareholder approval of the amendment and restatement of the Plan, an additional 36,000,000 Common Shares became available for all awards under the Plan. Common stock issued from Treasury stock under the plans totaled 5,590,641 for 2018, 11,139,748 for 2017 and 4,164,134 for 2016. The total number of shares authorized for equity awards under the amended and restated Caterpillar Inc. 2014 Long-Term Incentive Plan is 74,800,000, of which 44,139,162 shares remained available for issuance as of December?31,?2018. Stock option and RSU awards generally vest according to a threeyear graded vesting schedule. One-third of the award will become vested on the first anniversary of the grant date, one-third of the award will become vested on the second anniversary of the grant date and one-third of the award will become vested on the third anniversary of the grant date. PRSU awards generally have a threeyear performance period and cliff vest at the end of the period based upon achievement of performance targets established at the time of grant. Upon separation from service, if the participant is 55 years of age or older with more than five years of service, the participant meets the criteria for a “Long Service Separation. ” Award terms for awards granted in 2016 allow for immediate vesting upon separation of all outstanding options and RSUs with no requisite service period for employees who meet the criteria for a “Long Service Separation. ” Compensation expense for the 2016 grant was fully recognized immediately on the grant date for these employees. Award terms for the 2018 and 2017 grants allow for continued vesting as of each vesting date specified in the award document for employees who meet the criteria for a “Long Service Separation” and fulfill a requisite service period of six months. Compensation expense for eligible employees for the 2018 and 2017 grants was recognized over the period from the grant date to the end date of the six-month requisite service period. For employees who become eligible for a “Long Service Separation” subsequent to the end date of the six-month requisite service period and prior to the completion of the vesting period, compensation expense is recognized over the period from the grant date to the date eligibility is achieved. At grant, SARs and option awards have a term life of ten years. For awards granted prior to 2016, if the “Long Service Separation” criteria are met, the vested options/SARs have a life that is the lesser of ten years from the original grant date or five years from the separation date. For awards granted in 2018, 2017, and 2016, the vested options have a life equal to ten years from the original grant date. Prior to 2017, all outstanding PRSU awards granted to employees eligible for a “Long Service Separation” may vest at the end of the performance period based upon achievement of the performance target. Compensation expense for the 2016 PRSU grant was fully recognized immediately on the grant date for these employees. For PRSU awards granted in 2018 and 2017, only a prorated number of shares may vest at the end of the performance period based upon achievement of the performance target, with the proration based upon the number of months of continuous employment during the three-year performance period. Employees with a “Long Service Separation” must also fulfill a six-month requisite service period in order to be eligible for the prorated vesting of outstanding PRSU awards granted in 2018 and 2017. Compensation expense for the 2018 and 2017 PRSU grants is being recognized on a straight-line basis over the three-year performance period for all participants. Accounting guidance on share-based payments requires companies to estimate the fair value of options/SARs on the date of grant using an option-pricing model. The fair value of our option/SAR grants was estimated using a lattice-based option-pricing model. The latticebased option-pricing model considers a range of assumptions related to volatility, risk-free interest rate and historical employee behavior. Expected volatility was based on historical Caterpillar stock price movement and current implied volatilities from traded options on Caterpillar stock. The risk-free interest rate was based on U. S. Treasury security yields at the time of grant. The weighted-average dividend yield was based on historical information. The expected life was determined from the lattice-based model. The latticebased model incorporated exercise and post vesting forfeiture assumptions based on analysis of historical data. The following table provides the assumptions used in determining the fair value of the Option/SAR awards for the years ended December?31, 2018, 2017 and 2016, respectively.
<table><tr><td></td><td colspan="3">Grant Year</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Weighted-average dividend yield</td><td>2.7%</td><td>3.4%</td><td>3.2%</td></tr><tr><td>Weighted-average volatility</td><td>30.2%</td><td>29.2%</td><td>31.1%</td></tr><tr><td>Range of volatilities</td><td>21.5-33.0%</td><td>22.1-33.0%</td><td>22.5-33.4%</td></tr><tr><td>Range of risk-free interest rates</td><td>2.02-2.87%</td><td>0.81-2.35%</td><td>0.62-1.73%</td></tr><tr><td>Weighted-average expected lives</td><td>8 years</td><td>8 years</td><td>8 years</td></tr></table> |
0.63091 | what percentage where north american consumer packaging net sales of total consumer packaging sales in 2012? | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES GROUP INC.
<table><tr><td></td><td colspan="2"> Pension Benefits</td><td colspan="2"> Retiree Medical and Other Postretirement Benefits</td></tr><tr><td></td><td> 2015</td><td> 2014</td><td> 2015</td><td> 2014</td></tr><tr><td>For plans with accumulated benefit obligations exceeding the fair value of plan assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Projected benefit obligation (PBO)</td><td>$16,369</td><td>$17,560</td><td>$—</td><td>$—</td></tr><tr><td>Accumulated benefit obligation (ABO)</td><td>16,357</td><td>17,548</td><td>—</td><td>—</td></tr><tr><td>Accumulated postretirement benefit obligation (APBO)</td><td>—</td><td>—</td><td>1,129</td><td>1,324</td></tr><tr><td>Fair value of plan assets</td><td>9,677</td><td>10,950</td><td>253</td><td>244</td></tr><tr><td>ABO less fair value of plan assets</td><td>6,680</td><td>6,598</td><td>—</td><td>—</td></tr></table>
(1) At December 31, 2015, certain trust assets totaling approximately $24 million, were added to the retiree medical plan asset values that were previously offset against the benefit obligation. (2) The 2015 noncurrent liability does not include $17 million of other postretirement benefits or $1 million of prior service costs. The 2014 noncurrent liability does not include $18 million of other postretirement benefits or $2 million of prior service costs. The following tables provide the components of net periodic benefit cost (income) for the years ended December 31, 2015, 2014 and 2013 (in millions):
<table><tr><td></td><td colspan="3">Pension Benefits</td><td colspan="3">Retiree Medical and OtherPostretirement Benefits</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Defined benefit plans:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>$2</td><td>$3</td><td>$3</td><td>$3</td><td>$1</td><td>$—</td></tr><tr><td>Interest cost</td><td>737</td><td>746</td><td>654</td><td>50</td><td>61</td><td>50</td></tr><tr><td>Expected return on assets</td><td>-851</td><td>-786</td><td>-720</td><td>-19</td><td>-19</td><td>-16</td></tr><tr><td>Curtailments</td><td>—</td><td>—</td><td>2</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Settlements</td><td>1</td><td>4</td><td>-1</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Amortization of:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Prior service cost (benefit) (1)</td><td>28</td><td>28</td><td>28</td><td>-243</td><td>-244</td><td>-251</td></tr><tr><td>Unrecognized net loss (gain)</td><td>112</td><td>43</td><td>90</td><td>-9</td><td>-8</td><td>-9</td></tr><tr><td>Net periodic benefit cost (income) for defined benefit plans</td><td>29</td><td>38</td><td>56</td><td>-218</td><td>-209</td><td>-226</td></tr><tr><td>Defined contribution plans</td><td>662</td><td>546</td><td>328</td><td>N/A</td><td>N/A</td><td>N/A</td></tr><tr><td></td><td>$691</td><td>$584</td><td>$384</td><td>$-218</td><td>$-209</td><td>$-226</td></tr></table>
(1) The 2015 prior service cost does not include amortization of $3 million related to other postretirement benefits. The 2014 prior service cost does not include amortization of $14 million related to other postretirement benefits. The estimated amount of unrecognized net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $126 million. The estimated amount of unrecognized net gain for the retiree medical and other postretirement plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $16 million. Table of Contents The components of total net special charges (credits) in our accompanying consolidated statements of operations are as follows (in millions):
<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td>2015</td><td> 2014</td><td>2013</td></tr><tr><td>Other revenue special item, net -1</td><td>$—</td><td>$—</td><td>$-31</td></tr><tr><td>Mainline operating special items, net -2</td><td>1,051</td><td>800</td><td>559</td></tr><tr><td>Regional operating special items, net -3</td><td>29</td><td>24</td><td>8</td></tr><tr><td>Nonoperating special items, net -4</td><td>594</td><td>132</td><td>211</td></tr><tr><td>Reorganization items, net -5</td><td>—</td><td>—</td><td>2,655</td></tr><tr><td>Income tax special items, net -6</td><td>-3,015</td><td>346</td><td>-324</td></tr><tr><td>Total</td><td>$-1,341</td><td>$1,302</td><td>$3,078</td></tr></table>
(1) In 2013, other revenue special item, net included a credit to other revenues related to a change in accounting method resulting from the modification of American’s AAdvantage miles agreement with Citibank. (2) In 2015, mainline operating special items, net principally included $1.0 billion of merger integration expenses related to information technology, alignment of labor union contracts, professional fees, severance, share-based compensation, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In 2014, mainline operating special items, net principally included $810 million of merger integration expenses related to information technology, alignment of labor union contracts, professional fees, severance and retention, share-based compensation, divestiture of London Heathrow slots, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In addition, we recorded a net charge of $81 million for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations and an $81 million charge to revise prior estimates of certain aircraft residual values and other spare parts asset impairments. These charges were offset in part by a $309 million gain on the sale of slots at DCA. In 2013, mainline operating special items, net included $443 million of merger related expenses related to the alignment of labor union contracts, professional fees, severance, share-based compensation and fees for US Airways to exit the Star Alliance and its codeshare agreement with United Airlines. In addition, we recorded a $107 million charge related to American’s pilot long-term disability obligation, a $43 million charge for workers’ compensation claims and a $33 million aircraft impairment charge. These charges were offset in part by a $67 million gain on the sale of slots at LGA. (3) The 2015 regional operating special items, net principally related to merger integration expenses. The 2014 regional operating special items, net consisted primarily of a $24 million charge due to a new pilot labor contract at our Envoy regional subsidiary as well as $7 million of merger integration expenses, offset in part by an $8 million gain on the sale of certain spare parts. (4) In 2015, nonoperating special items, net principally included a $592 million charge to write off all of the value of Venezuelan bolivars held by us due to continued lack of repatriations and deterioration of economic conditions in Venezuela. In 2014, nonoperating special items, net principally included a $43 million charge for Venezuelan foreign currency losses, $56 million of early debt extinguishment costs primarily related to the prepayment of 7.50% senior secured notes and other indebtedness and $33 million of non-cash interest accretion on bankruptcy settlement obligations. In 2013, nonoperating special items, net consisted of interest charges of $138 million primarily to recognize post-petition interest expense on unsecured obligations pursuant to the Plan and penalty interest related to 10.5% secured notes and 7.50% senior secured notes, a $54 million charge related to the premium on tender for existing EETC financings and the write-off of debt issuance costs and $19 million in charges related to the repayment of existing EETC financings. Table of Contents The components of American’s total net special charges (credits) included in American’s accompanying consolidated statements of operations are as follows (in millions):
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td></td><td>2015</td><td> 2014</td><td>2013</td></tr><tr><td>Other revenue special item, net -1</td><td>$—</td><td>$—</td><td>$-31</td></tr><tr><td>Mainline operating special items, net -2</td><td>1,051</td><td>783</td><td>559</td></tr><tr><td>Regional operating special items, net -3</td><td>18</td><td>5</td><td>—</td></tr><tr><td>Nonoperating special items, net -4</td><td>616</td><td>128</td><td>121</td></tr><tr><td>Reorganization items, net -5</td><td>—</td><td>—</td><td>2,640</td></tr><tr><td>Income tax special items, net -6</td><td>-3,468</td><td>344</td><td>-324</td></tr><tr><td>Total</td><td>$-1,783</td><td>$1,260</td><td>$2,965</td></tr></table>
(1) In 2013, other revenue special item, net included a credit to other revenues related to a change in accounting method resulting from the modification of American’s AAdvantage miles agreement with Citibank. (2) In 2015, mainline operating special items, net principally included $1.0 billion of merger integration expenses related to information technology, alignment of labor union contracts, professional fees, severance, share-based compensation, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In 2014, mainline operating special items, net principally included $803 million of merger integration expenses related to information technology, alignment of labor union contracts, professional fees, severance and retention, share-based compensation, divestiture of London Heathrow slots, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In addition, American recorded a net charge of $60 million for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations and an $81 million charge to revise prior estimates of certain aircraft residual values and other spare parts asset impairments. These charges were offset in part by a $309 million gain on the sale of slots at DCA. In 2013, mainline operating special items, net principally included $443 million of merger related expenses related to the alignment of labor union contracts, professional fees, severance, share-based compensation and fees for US Airways to exit the Star Alliance and its codeshare agreement with United Airlines. In addition,American recorded a $107 million charge related to American’s pilot long-term disability obligation, a $43 million charge for workers’ compensation claims and a $33 million aircraft impairment charge. These charges were offset in part by a $67 million gain on the sale of slots at LGA. (3) The 2015 and 2014 regional operating special items, net principally related to merger integration expenses. (4) In 2015, nonoperating special items, net principally included a $592 million charge to write off all of the value of Venezuelan bolivars held by American due to continued lack of repatriations and deterioration of economic conditions in Venezuela. In 2014, nonoperating special items, net principally included a $43 million charge for Venezuelan foreign currency losses, $56 million of early debt extinguishment costs primarily related to the prepayment of 7.50% senior secured notes and other indebtedness and $29 million of non-cash interest accretion on bankruptcy settlement obligations. In 2013, nonoperating special items, net consisted of interest charges of $48 million primarily to recognize post-petition interest expense on unsecured obligations pursuant to the Plan and penalty interest related to 10.5% secured notes and 7.50% senior secured notes, a $54 million charge related to the premium on tender for existing EETC financings and the write-off of debt issuance costs and $19 million in charges related to the repayment of existing EETC financings. (5) In 2013, American recognized reorganization expenses as a result of the filing of voluntary petitions for relief under Chapter 11. These amounts consisted primarily of estimated allowed claim amounts and professional fees. freesheet paper were higher in Russia, but lower in Europe reflecting weak economic conditions and market demand. Average sales price realizations for pulp decreased. Lower input costs for wood and purchased fiber were partially offset by higher costs for energy, chemicals and packaging. Freight costs were also higher. Planned maintenance downtime costs were higher due to executing a significant once-every-ten-years maintenance outage plus the regularly scheduled 18-month outage at the Saillat mill while outage costs in Russia and Poland were lower. Manufacturing operating costs were favorable. Entering 2013, sales volumes in the first quarter are expected to be seasonally weaker in Russia, but about flat in Europe. Average sales price realizations for uncoated freesheet paper are expected to decrease in Europe, but increase in Russia. Input costs should be higher in Russia, especially for wood and energy, but be slightly lower in Europe. No maintenance outages are scheduled for the first quarter. Indian Papers includes the results of Andhra Pradesh Paper Mills (APPM) of which a 75% interest was acquired on October 14, 2011. Net sales were $185 million in 2012 and $35 million in 2011. Operating profits were a loss of $16 million in 2012 and a loss of $3 million in 2011. Asian Printing Papers net sales were $85 million in 2012, $75 million in 2011 and $80 million in 2010. Operating profits were improved from breakeven in past years to $1 million in 2012. U. S. Pulp net sales were $725 million in 2012 compared with $725 million in 2011 and $715 million in 2010. Operating profits were a loss of $59 million in 2012 compared with gains of $87 million in 2011 and $107 million in 2010. Sales volumes in 2012 increased from 2011 primarily due to the start-up of pulp production at the Franklin mill in the third quarter of 2012. Average sales price realizations were significantly lower for both fluff pulp and market pulp. Input costs were lower, primarily for wood and energy. Freight costs were slightly lower. Mill operating costs were unfavorable primarily due to costs associated with the start-up of the Franklin mill. Planned maintenance downtime costs were lower. In the first quarter of 2013, sales volumes are expected to be flat with the fourth quarter of 2012. Average sales price realizations are expected to improve reflecting the realization of sales price increases for paper and tissue pulp that were announced in the fourth quarter of 2012. Input costs should be flat. Planned maintenance downtime costs should be about $9 million higher than in the fourth quarter of 2012. Manufacturing costs related to the Franklin mill should be lower as we continue to improve operations. Consumer Packaging Demand and pricing for Consumer Packaging products correlate closely with consumer spending and general economic activity. In addition to prices and volumes, major factors affecting the profitability of Consumer Packaging are raw material and energy costs, freight costs, manufacturing efficiency and product mix. Consumer Packaging net sales in 2012 decreased 15% from 2011 and 7% from 2010. Operating profits increased 64% from 2011 and 29% from 2010. Net sales and operating profits include the Shorewood business in 2011 and 2010. Excluding asset impairment and other charges associated with the sale of the Shorewood business, and facility closure costs, 2012 operating profits were 27% lower than in 2011, but 23% higher than in 2010. Benefits from lower raw material costs ($22 million), lower maintenance outage costs ($5 million) and other items ($2 million) were more than offset by lower sales price realizations and an unfavorable product mix ($66 million), lower sales volumes and increased market-related downtime ($22 million), and higher operating costs ($40 million). In addition, operating profits in 2012 included a gain of $3 million related to the sale of the Shorewood business while operating profits in 2011 included a $129 million fixed asset impairment charge for the North American Shorewood business and $72 million for other charges associated with the sale of the Shorewood business.
<table><tr><td>In millions</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Sales</td><td>$3,170</td><td>$3,710</td><td>$3,400</td></tr><tr><td>Operating Profit</td><td>268</td><td>163</td><td>207</td></tr></table>
North American Consumer Packaging net sales were $2.0 billion in 2012 compared with $2.5 billion in 2011 and $2.4 billion in 2010. Operating profits were $165 million ($162 million excluding a gain related to the sale of the Shorewood business) in 2012 compared with $35 million ($236 million excluding asset impairment and other charges associated with the sale of the Shorewood business) in 2011 and $97 million ($105 million excluding facility closure costs) in 2010. Coated Paperboard sales volumes in 2012 were lower than in 2011 reflecting weaker market demand. Average sales price realizations were lower, primarily for folding carton board. Input costs for wood increased, but were partially offset by lower costs for chemicals and energy. Planned maintenance downtime costs were slightly lower. Market-related downtime was about 113,000 tons in 2012 compared with about 38,000 tons in 2011. |
0.08923 | In the year with lowest amount of Other analog, what's the increasing rate of Converters? | The year-to-year increase in communications end market revenue in fiscal 2014 was primarily a result of increased wireless base station deployment activity and, to a lesser extent, an increase in revenue as a result of the Acquisition. Industrial end market revenue increased year-over-year in fiscal 2014 as compared to fiscal 2013 as a result of an increase in demand in this end market, which was most significant for products sold into the instrumentation and automation sectors and, to a lesser extent, an increase in revenue as a result of the Acquisition. The year-to-year increase in automotive end market revenue in fiscal 2014 was primarily a result of increasing electronic content in vehicles and higher demand for new vehicles. The year-toyear decrease in revenue in the consumer end market in fiscal 2014 was primarily the result of the sale of our microphone product line in the fourth quarter of fiscal 2013. The year-to-year decrease in revenue in the industrial and consumer end markets in fiscal 2013 was primarily the result of a weak global economic environment and one less week of operations in fiscal 2013 as compared to fiscal 2012. Automotive end market revenue increased in fiscal 2013 primarily as a result of increasing electronic content in vehicles. Revenue Trends by Product Type The following table summarizes revenue by product categories. The categorization of our products into broad categories is based on the characteristics of the individual products, the specification of the products and in some cases the specific uses that certain products have within applications. The categorization of products into categories is therefore subject to judgment in some cases and can vary over time. In instances where products move between product categories, we reclassify the amounts in the product categories for all prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each product category
<table><tr><td></td><td colspan="3">2014</td><td colspan="2">2013</td><td colspan="2">2012</td></tr><tr><td></td><td>Revenue</td><td>% ofTotalProductRevenue*</td><td>Y/Y%</td><td>Revenue</td><td>% ofTotalProductRevenue*</td><td>Revenue</td><td>% ofTotalProductRevenue*</td></tr><tr><td>Converters</td><td>$1,285,368</td><td>45%</td><td>9%</td><td>$1,180,072</td><td>45%</td><td>$1,192,064</td><td>44%</td></tr><tr><td>Amplifiers/Radio frequency</td><td>806,975</td><td>28%</td><td>18%</td><td>682,759</td><td>26%</td><td>697,687</td><td>26%</td></tr><tr><td>Other analog</td><td>356,406</td><td>12%</td><td>-4%</td><td>372,281</td><td>14%</td><td>397,376</td><td>15%</td></tr><tr><td>Subtotal analog signal processing</td><td>2,448,749</td><td>85%</td><td>10%</td><td>2,235,112</td><td>85%</td><td>2,287,127</td><td>85%</td></tr><tr><td>Power management & reference</td><td>174,483</td><td>6%</td><td>1%</td><td>172,920</td><td>7%</td><td>182,134</td><td>7%</td></tr><tr><td>Total analog products</td><td>$2,623,232</td><td>92%</td><td>9%</td><td>$2,408,032</td><td>91%</td><td>$2,469,261</td><td>91%</td></tr><tr><td>Digital signal processing</td><td>241,541</td><td>8%</td><td>7%</td><td>225,657</td><td>9%</td><td>231,881</td><td>9%</td></tr><tr><td>Total Revenue</td><td>$2,864,773</td><td>100%</td><td>9%</td><td>$2,633,689</td><td>100%</td><td>$2,701,142</td><td>100%</td></tr></table>
The sum of the individual percentages does not equal the total due to rounding. The year-to-year increase in total revenue in fiscal 2014 as compared to fiscal 2013 was the result of improving demand across most product type categories and the result of the Acquisition, which was partially offset by declines in the other analog product category, primarily as a result of the sale of our microphone product line in the fourth quarter of fiscal 2013. The year-to-year decrease in total revenue in fiscal 2013 as compared to fiscal 2012 was the result of one less week of operations in fiscal 2013 as compared to fiscal 2012 and a broad-based decrease in demand across most product type categories. Revenue Trends by Geographic Region Revenue by geographic region, based upon the primary location of our customers' design activity for its products, for fiscal 2014, 2013 and 2012 was as follows. ANALOG DEVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
<table><tr><td>Stock Options</td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td>Options granted (in thousands)</td><td>2,240</td><td>2,407</td><td>2,456</td></tr><tr><td>Weighted-average exercise price</td><td>$51.52</td><td>$46.40</td><td>$39.58</td></tr><tr><td>Weighted-average grant-date fair value</td><td>$8.74</td><td>$7.38</td><td>$7.37</td></tr><tr><td>Assumptions:</td><td></td><td></td><td></td></tr><tr><td>Weighted-average expected volatility</td><td>24.9%</td><td>24.6%</td><td>28.4%</td></tr><tr><td>Weighted-average expected term (in years)</td><td>5.3</td><td>5.4</td><td>5.3</td></tr><tr><td>Weighted-average risk-free interest rate</td><td>1.7%</td><td>1.0%</td><td>1.1%</td></tr><tr><td>Weighted-average expected dividend yield</td><td>2.9%</td><td>2.9%</td><td>3.0%</td></tr></table>
As it relates to our market-based restricted stock units, the Company utilizes the Monte Carlo simulation valuation model to value these awards. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the performance conditions stipulated in the award grant and calculates the fair market value for the market-based restricted stock units granted. The Monte Carlo simulation model also uses stock price volatility and other variables to estimate the probability of satisfying the performance conditions, including the possibility that the market condition may not be satisfied, and the resulting fair value of the award. Information pertaining to the Company's market-based restricted stock units and the related estimated assumptions used to calculate the fair value of market-based restricted stock units granted using the Monte Carlo simulation model is as follows:
<table><tr><td>Market-based Restricted Stock Units</td><td>2014</td></tr><tr><td>Units granted (in thousands)</td><td>86</td></tr><tr><td>Grant-date fair value</td><td>$50.79</td></tr><tr><td>Assumptions:</td><td></td></tr><tr><td>Historical stock price volatility</td><td>23.2%</td></tr><tr><td>Risk-free interest rate</td><td>0.8%</td></tr><tr><td>Expected dividend yield</td><td>2.8%</td></tr></table>
Market-based restricted stock units were not granted during fiscal 2013 or 2012. Expected volatility — The Company is responsible for estimating volatility and has considered a number of factors, including third-party estimates. The Company currently believes that the exclusive use of implied volatility results in the best estimate of the grant-date fair value of employee stock options because it reflects the market’s current expectations of future volatility. In evaluating the appropriateness of exclusively relying on implied volatility, the Company concluded that: (1) options in the Company’s common stock are actively traded with sufficient volume on several exchanges; (2) the market prices of both the traded options and the underlying shares are measured at a similar point in time to each other and on a date close to the grant date of the employee share options; (3) the traded options have exercise prices that are both near-the-money and close to the exercise price of the employee share options; and (4) the remaining maturities of the traded options used to estimate volatility are at least one year. Expected term — The Company uses historical employee exercise and option expiration data to estimate the expected term assumption for the Black-Scholes grant-date valuation. The Company believes that this historical data is currently the best estimate of the expected term of a new option, and that generally its employees exhibit similar exercise behavior. Risk-free interest rate — The yield on zero-coupon U. S. Treasury securities for a period that is commensurate with the expected term assumption is used as the risk-free interest rate. Expected dividend yield — Expected dividend yield is calculated by annualizing the cash dividend declared by the Company’s Board of Directors for the current quarter and dividing that result by the closing stock price on the date of grant. Until such time as the Company’s Board of Directors declares a cash dividend for an amount that is different from the current quarter’s cash dividend, the current dividend will be used in deriving this assumption. Cash dividends are not paid on options, restricted stock or restricted stock units. an adverse development with respect to one claim in 2008 and favorable developments in three cases in 2009. Other costs were also lower in 2009 compared to 2008, driven by a decrease in expenses for freight and property damages, employee travel, and utilities. In addition, higher bad debt expense in 2008 due to the uncertain impact of the recessionary economy drove a favorable year-over-year comparison. Conversely, an additional expense of $30 million related to a transaction with Pacer International, Inc. and higher property taxes partially offset lower costs in 2009. Other costs were higher in 2008 compared to 2007 due to an increase in bad debts, state and local taxes, loss and damage expenses, utility costs, and other miscellaneous expenses totaling $122 million. Conversely, personal injury costs (including asbestos-related claims) were $8 million lower in 2008 compared to 2007. The reduction reflects improvements in our safety experience and lower estimated costs to resolve claims as indicated in the actuarial studies of our personal injury expense and annual reviews of asbestos-related claims in both 2008 and 2007. The year-over-year comparison also includes the negative impact of adverse development associated with one claim in 2008. In addition, environmental and toxic tort expenses were $7 million lower in 2008 compared to 2007. Non-Operating Items |
27 | what was total stock-based performance unit awards expense in 2018 , 2017 , and 2016 , in millions? | <table><tr><td></td><td>2009</td><td>2008</td></tr><tr><td> E&P Operating Statistics</td><td></td><td></td></tr><tr><td>Average Realizations<sup>(d)</sup></td><td></td><td></td></tr><tr><td>Liquid Hydrocarbons (per bbl)</td><td></td><td></td></tr><tr><td>United States</td><td>$54.67</td><td>$86.68</td></tr><tr><td>Europe</td><td>64.46</td><td>90.60</td></tr><tr><td>Africa</td><td>53.91</td><td>89.85</td></tr><tr><td>Total International</td><td>59.31</td><td>90.14</td></tr><tr><td>Worldwide Continuing Operations</td><td>58.09</td><td>89.07</td></tr><tr><td>Discontinued Operations<sup>(b)</sup></td><td>56.47</td><td>96.41</td></tr><tr><td>Worldwide</td><td>$58.06</td><td>$89.29</td></tr><tr><td>Natural Gas (per mcf)</td><td></td><td></td></tr><tr><td>United States</td><td>$4.14</td><td>$7.01</td></tr><tr><td>Europe</td><td>4.90</td><td>7.67</td></tr><tr><td>Africa</td><td>0.25</td><td>0.25</td></tr><tr><td>Total International</td><td>1.38</td><td>2.50</td></tr><tr><td>Worldwide Continuing Operations</td><td>2.47</td><td>4.56</td></tr><tr><td>Discontinued Operations<sup>(b)</sup></td><td>8.54</td><td>9.62</td></tr><tr><td>Worldwide</td><td>$2.58</td><td>$4.75</td></tr></table>
(a) Includes crude oil, condensate and natural gas liquids. The amounts correspond with the basis for fiscal settlements with governments, representing equity tanker liftings and direct deliveries of liquid hydrocarbons. (b) Our businesses in Ireland and Gabon were sold in 2009. All periods have been recast to reflect these businesses as discontinued operations. (c) Includes natural gas acquired for injection and subsequent resale of 22 mmcfd and 32 mmcfd in 2009 and 2008. (d) Excludes gains and losses on derivative instruments and the unrealized effects of U. K. natural gas contracts that are accounted for as derivatives. E&P segment revenues included derivative losses of $13 million in 2009 and gains of $22 million in 2008. Excluded from E&P segment revenues were gains of $72 million in 2009 and $218 million in 2008 related to natural gas sales contracts in the U. K. that were accounted for as derivative instruments. These U. K contracts expired in September 2009. OSM segment revenues decreased $455 million from 2008 to 2009. Revenues were impacted by net gains of $12 million in 2009 and $48 million in 2008 on derivative instruments, which expired December 2009. Excluding the derivatives, the decrease in revenue reflects the almost 40 percent decline in synthetic crude oil realizations. Synthetic crude oil sales volumes were consistent between the years. RM&T segment revenues decreased $18,951 million from 2008 to 2009 matching relative price level changes. While our overall refined product sales volumes in 2009 were relatively unchanged compared to 2008, the level of average petroleum prices declined significantly as shown in Item 1. Business—Refining, Marketing and Transportation. The level of crude oil prices has a direct influence on our refined product prices. The table below shows the average annual refined product benchmark prices for our marketing area.
<table><tr><td><i>(Dollars per gallon)</i></td><td>2009</td><td>2008</td></tr><tr><td>Chicago Spot Unleaded regular gasoline</td><td>$1.68</td><td>$2.50</td></tr><tr><td>Chicago Spot Ultra-low sulfur diesel</td><td>$1.66</td><td>$2.95</td></tr><tr><td>U.S. Gulf Coast Spot Unleaded regular gasoline</td><td>$1.64</td><td>$2.48</td></tr><tr><td>U.S. Gulf Coast Spot Ultra-low sulfur diesel</td><td>$1.66</td><td>$2.93</td></tr></table>
Sales to related parties decreased in 2009 as a result of the sale of our interest in Pilot Travel Centers LLC (“PTC”) during the fourth quarter of 2008. Income from equity method investments decreased $467 million in 2009 from 2008 primarily as the result of lower commodity prices on the earnings of many of our equity investees in 2009 and the sale of our equity method investment in PTC during the fourth quarter of 2008. Net gain on disposal of assets in 2009 includes our gain on the sale of our operated and a portion of our outside-operated Permian Basin producing assets in New Mexico and west Texas, plus sales of other oil and gas properties and retail stores. In 2008, we sold our outside-operated interests (24 percent of Heimdal field, 47 percent MARATHON OIL CORPORATIONNotes to Consolidated Financial Statements90Stock-based performance unit awards – During 2018, 2017 and 2016 we granted 754,140, 563,631 and 1,205,517 stockbased performance unit awards to officers. At December 31, 2018, there were 1,196,176 units outstanding. Total stock-based performance unit awards expense was $13 million in 2018, $8 million in 2017 and $6 million in 2016. The key assumptions used in the Monte Carlo simulation to determine the fair value of stock-based performance units granted in 2018, 2017 and 2016 were:
<table><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Valuation date stock price</td><td>$14.17</td><td>$14.17</td><td>$14.17</td></tr><tr><td>Expected annual dividend yield</td><td>1.4%</td><td>1.4%</td><td>1.4%</td></tr><tr><td>Expected volatility</td><td>39%</td><td>43%</td><td>52%</td></tr><tr><td>Risk-free interest rate</td><td>2.5%</td><td>2.6%</td><td>2.4%</td></tr><tr><td>Fair value of stock-based performance units outstanding</td><td>$19.60</td><td>$19.45</td><td>$21.51</td></tr></table>
18. Defined Benefit Postretirement Plans and Defined Contribution PlanWe have noncontributory defined benefit pension plans covering substantially all domestic employees, as well as U. K. employees who were hired before April 2010. Certain employees located in E. G. , who are U. S. or U. K. based, also participate in these plans. Benefits under these plans are based on plan provisions specific to each plan. For the U. K. pension plan, the principal employer and plan trustees reached a decision to close the plan to future benefit accruals effective December 31, 2015. We also have defined benefit plans for other postretirement benefits covering our U. S. employees. Health care benefits are provided up to age 65 through comprehensive hospital, surgical and major medical benefit provisions subject to various costsharing features. Post-age 65 health care benefits are provided to certain U. S. employees on a defined contribution basis. Life insurance benefits are provided to certain retiree beneficiaries. These other postretirement benefits are not funded in advance. Employees hired after 2016 are not eligible for any postretirement health care or life insurance benefits. MARATHON OIL CORPORATION Notes to Consolidated Financial Statements 92 Components of net periodic benefit cost from continuing operations and other comprehensive (income) loss – The following summarizes the net periodic benefit costs and the amounts recognized as other comprehensive (income) loss for our defined benefit pension and other postretirement plans
<table><tr><td></td><td colspan="6">Pension Benefits Year Ended December 31,</td><td colspan="3">Other Benefits Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2018</td><td colspan="2">2017</td><td colspan="2">2016</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>(In millions)</td><td>U.S.</td><td>Int’l</td><td>U.S.</td><td>Int’l</td><td>U.S.</td><td>Int’l</td><td>U.S.</td><td>U.S.</td><td>U.S.</td></tr><tr><td>Components of net periodic benefit cost:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>$18</td><td>$—</td><td>$22</td><td>$—</td><td>$25</td><td>$—</td><td>$2</td><td>$2</td><td>$2</td></tr><tr><td>Interest cost</td><td>12</td><td>14</td><td>13</td><td>17</td><td>16</td><td>23</td><td>7</td><td>8</td><td>11</td></tr><tr><td>Expected return on plan assets</td><td>-11</td><td>-24</td><td>-13</td><td>-30</td><td>-18</td><td>-35</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Amortization:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>- prior service cost (credit)</td><td>-10</td><td>—</td><td>-10</td><td>—</td><td>-10</td><td>1</td><td>-8</td><td>-7</td><td>-3</td></tr><tr><td>- actuarial loss</td><td>11</td><td>—</td><td>8</td><td>1</td><td>14</td><td>—</td><td>1</td><td>—</td><td>—</td></tr><tr><td>Net settlement loss<sup>(a)</sup></td><td>18</td><td>3</td><td>28</td><td>4</td><td>97</td><td>6</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net periodic benefit cost<sup>(b)</sup></td><td>$38</td><td>$-7</td><td>$48</td><td>$-8</td><td>$124</td><td>$-5</td><td>$2</td><td>$3</td><td>$10</td></tr><tr><td>Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss (pretax):</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Actuarial loss (gain)</td><td>$-4</td><td>$8</td><td>$28</td><td>$-26</td><td>$70</td><td>$41</td><td>$-15</td><td>$5</td><td>$11</td></tr><tr><td>Amortization of actuarial gain (loss)</td><td>-29</td><td>-3</td><td>-36</td><td>-4</td><td>-111</td><td>-6</td><td>-1</td><td>—</td><td>—</td></tr><tr><td>Prior service cost (credit)</td><td>—</td><td>3</td><td>—</td><td>—</td><td>—</td><td>1</td><td>-99</td><td>—</td><td>-38</td></tr><tr><td>Amortization of prior service credit (cost)</td><td>10</td><td>—</td><td>10</td><td>—</td><td>10</td><td>-1</td><td>8</td><td>7</td><td>3</td></tr><tr><td>Total recognized in other comprehensive (income) loss</td><td>$-23</td><td>$8</td><td>$2</td><td>$-30</td><td>$-31</td><td>$35</td><td>$-107</td><td>$12</td><td>$-24</td></tr><tr><td>Total recognized in net periodic benefit cost and other comprehensive (income) loss</td><td>$15</td><td>$1</td><td>$50</td><td>$-38</td><td>$93</td><td>$30</td><td>$-105</td><td>$15</td><td>$-14</td></tr></table>
(a) Settlements are recognized as they occur, once it is probable that lump sum payments from a plan for a given year will exceed the plan’s total service and interest costs for that year. (b) Net periodic benefit cost reflects a calculated market-related value of plan assets which recognizes changes in fair value over three years. The estimated net loss and prior service credit for our defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2019 are $7 million and $7 million. The estimated net loss and prior service credit for our other defined benefit postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2019 are $1 million and $18 million. Plan assumptions – The following summarizes the assumptions used to determine the benefit obligations at December 31, and net periodic benefit cost for the defined benefit pension and other postretirement plans for 2018, 2017 and 2016. |
6,386.1 | What's the total amount of the elements in the years where Residential is greater than 20? (in (million) | requirements relating to the Act. The Companies’ actuaries have determined that each prescription drug plan provides a benefit that is at least actuarially equivalent to the Medicare prescription drug plan and projections indicate that this will be the case for 20 years; therefore, the Companies are eligible to receive the benefit. When the plans’ benefits are no longer actuarially equivalent to the Medicare plan, 25% of the retirees in each plan are assumed to begin to decline participation in the Companies’ prescription programs. To reflect the effect of the Act on the plans, the accumulated postretirement benefit obligations were reduced for Con Edison, Con Edison of New York and O&R by $160 million, $139 million and $21 million, respectively, as of December 31, 2004. The 2004 postretirement benefit costs were reduced by $29 million for Con Edison, $26 million for Con Edison of New York and $3 million for O&R. The Companies will recognize the 28% subsidy (reflected as an unrecognized net gain to each plan) as an offset to plan costs. The 28% subsidy is expected to reduce prescription drug plan costs by about 25% starting in 2006. Note G – Environmental Matters Superfund Sites Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored. The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which includes costs of demolition, removal, disposal, storage, replacement, containment and monitoring) and environmental damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas sites, are referred to herein as “Superfund Sites. ” For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay to discharge their related obligations. For Superfund Sites (including the manufactured gas sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites in light of the information available, applicable remediation standards and experience with similar sites. For the year ended December 31, 2004, Con Edison of New York and O&R incurred approximately $44 million and $3 million, respectively, for environmental remediation costs. Insurance recoveries of $36 million were received by Con Edison of New York, $35 million of which reduced related regulatory assets, with the remainder credited to expense. For the year ended December 31, 2003, Con Edison of New York and O&R incurred approximately $21 million and $5 million, respectively, for environmental remediation costs. No insurance recoveries were received. For the year ended December 31, 2002, Con Edison of New York and O&R incurred approximately $22 million and $2 million, respectively, for environmental remediation costs, and O&R received insurance recoveries of $7 million. The accrued liabilities and regulatory assets related to Superfund Sites for each of the Companies at December 31, 2004 and December 31, 2003 were as follows:
<table><tr><td></td><td colspan="2"><i>Con Edison</i></td><td colspan="2"><i>Con Edison of</i><i>New York</i></td><td colspan="2"><i>O&R</i></td></tr><tr><td><i>(Millions of Dollars)</i></td><td><i>2004</i></td><td><i>2003</i></td><td><i>2004</i></td><td><i>2003</i></td><td><i>2004</i></td><td><i>2003</i></td></tr><tr><td>Accrued Liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Manufactured gas plant sites</td><td>$148</td><td>$145</td><td>$92</td><td>$106</td><td>$56</td><td>$39</td></tr><tr><td>Other Superfund Sites</td><td>50</td><td>48</td><td>49</td><td>47</td><td>1</td><td>1</td></tr><tr><td>Total</td><td>$198</td><td>$193</td><td>$141</td><td>$153</td><td>$57</td><td>$40</td></tr><tr><td>Regulatory assets</td><td>$165</td><td>$155</td><td>$106</td><td>$116</td><td>$59</td><td>$39</td></tr></table>
Most of the accrued Superfund Site liability relates to Superfund Sites that have been investigated, in whole or in part. As investigations progress on these and other sites, the Companies expect that additional liability will be accrued, the amount of which is not presently determinable but may be material. The Utilities are permitted under their current rate agreements to recover or defer as regulatory assets (for subsequent recovery through rates) certain site investigation and remediation costs. Con Edison of New York estimated in 2002 that for its manufactured gas sites, many of which had not been investigated, its aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other manufactured gas plant-related environmental contaminants could range from approximately $65 million to $1.1 billion. O&R estimated in 2004 that for its manufactured gas sites, each of which has been investigated, the aggregate undiscounted potential liability for the remediation of such contaminants could range from approximately $31 million to $87 million. These Gas Supply O&R and CECONY have combined their gas requirements and purchase contracts to meet those requirements into a single portfolio. See “CECONY – Gas Operations – Gas Supply” above. Competitive Energy Businesses Con Edison pursues competitive energy opportunities through three wholly-owned subsidiaries: Con Edison Solutions, Con Edison Energy and Con Edison Development. These businesses include the sales and related hedging of electricity to wholesale and retail customers, sales of certain energyrelated products and services, and participation in energy infrastructure projects. At December 31, 2010, Con Edison’s equity investment in its competitive energy businesses was $337 million and their assets amounted to $807 million. The competitive energy businesses are pursuing opportunities to invest in renewable generation and energy-related infrastructure projects. Con Edison Solutions Con Edison Solutions primarily sells electricity to industrial, commercial and governmental customers in the northeastern United States and Texas. It also sells electricity to residential and small commercial customers in the northeastern United States. Con Edison Solutions does not sell electricity to the Utilities. Con Edison Solutions sells electricity to customers who are provided delivery service by the Utilities. It also provides energy efficiency services, procurement and management services to companies and governmental entities throughout most of the United States. Con Edison Solutions was reported by KEMA, Inc. in September 2010 to be the 9th largest non-residential retail electricity provider in the United States. Most of the company’s electricity sales volumes are to industrial, large commercial and government customers. The company also sells to two retail aggregation entities in Massachusetts and to individual residential and small commercial (mass market) customers in the northeastern United States. At December 31, 2010, it served approximately 115,000 customers, not including approximately 165,000 served under the two aggregation agreements. Con Edison Solutions sold 15,993 million kWhs of electricity in 2010, a 26 percent increase from 2009 volumes.
<table><tr><td></td><td> 2006</td><td> 2007</td><td> 2008</td><td> 2009</td><td> 2010</td></tr><tr><td>Retail electric volumes sold (millions of kWhs)</td><td>10,633</td><td>12,209</td><td>10,749</td><td>12,723</td><td>15,993</td></tr><tr><td>Number of retail customers accounts:(a)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Industrial and large commercial</td><td>10,957</td><td>14,335</td><td>14,491</td><td>26,009</td><td>29,561</td></tr><tr><td>Mass market</td><td>31,725</td><td>33,979</td><td>39,976</td><td>49,094</td><td>85,191</td></tr></table>
(a) Excludes aggregation agreement customers Con Edison Solutions seeks to serve customers in utility service territories that encourage retail competition through transparent pricing, purchase of receivables programs or utility-sponsored customer acquisition programs. The company currently sells electricity in the service territories of 43 utilities in the states of New York, Massachusetts, Connecticut, New Hampshire, Maine, New Jersey, Delaware, Maryland, Illinois, Pennsylvania and Texas, as well as the District of Columbia. Total peak load at the end of 2010 was 5,300 MWs. Approximately 34 percent of the sales volumes were in New York, 27 percent in New England, 31 percent in PJM and the remainder in Texas. Con Edison Solutions offers the choice of green power to customers. In 2010, it sold approximately 233 million kWhs of green power, ending the year with almost 24,000 customers. Green power is a term used by electricity suppliers to describe electricity produced from renewable energy sources, including wind, hydro and solar. Con Edison Solutions also provides energy-efficiency services to government and commercial customers. The services include the design and installation of lighting retrofits, highefficiency heating, ventilating and air conditioning equipment and other energy saving technologies. The company is compensated for their services based primarily on the increased energy efficiency of the installed equipment over a multi-year period. Con Edison Solutions has won competitive solicitations for energy savings contracts with the Department of Energy and the Department of Defense, and a shared energy savings contract with the United States Postal Service. Electric Sales and Deliveries O&R delivers electricity to its full-service customers who purchase electricity from the company. The company also delivers electricity to its customers who purchase electricity from other suppliers through the company’s energy choice program. The company charges all customers in its service area for the delivery of electricity. O&R generally recovers, on a current basis, the cost of the electricity that it buys and then sells to its full-service customers. It does not make any margin or profit on the electricity it sells. O&R’s New York electric revenues (which accounted for 77.2 percent of O&R’s electric revenues in 2014) are subject to a revenue decoupling mechanism. As a result, O&R’s New York electric delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric sales in New Jersey and Pennsylvania are not subject to a decoupling mechanism. O&R’s electric sales and deliveries for the last five years were:
<table><tr><td></td><td colspan="5"> Year Ended December 31,</td></tr><tr><td></td><td>2010</td><td>2011</td><td> 2012</td><td> 2013</td><td> 2014</td></tr><tr><td> Electric Energy Delivered (millions of kWhs)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total deliveries to O&R full service customers</td><td>3,498</td><td>3,029</td><td>2,691</td><td>2,555</td><td>2,429</td></tr><tr><td>Delivery service for energy choice customers</td><td>2,330</td><td>2,760</td><td>3,040</td><td>3,166</td><td>3,240</td></tr><tr><td> Total Deliveries In Franchise Area</td><td>5,828</td><td>5,789</td><td>5,731</td><td>5,721</td><td>5,669</td></tr><tr><td> Electric Energy Delivered ($ in millions)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total deliveries to O&R full service customers</td><td>$570</td><td>$486</td><td>$405</td><td>$427</td><td>$455</td></tr><tr><td>Delivery service for energy choice customers</td><td>132</td><td>157</td><td>178</td><td>192</td><td>207</td></tr><tr><td>Other operating revenues</td><td>-10</td><td>-2</td><td>9</td><td>9</td><td>18</td></tr><tr><td> Total Deliveries In Franchise Area</td><td>$692</td><td>$641</td><td>$592</td><td>$628</td><td>$680</td></tr><tr><td> Average Revenue Per kWh Sold (Cents)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>18.3</td><td>18.0</td><td>16.7</td><td>18.1</td><td>20.3</td></tr><tr><td>Commercial and Industrial</td><td>14.1</td><td>13.7</td><td>13.0</td><td>14.8</td><td>16.8</td></tr></table>
For further discussion of the company’s electric operating revenues and its electric results, see “Results of Operations” in Item 7. For additional segment information, see Note N to the financial statements in Item 8. Electric Peak Demand The electric peak demand in O&R’s service area occurs during the summer air conditioning season. The weather during the summer of 2014 was cooler than design conditions. O&R’s 2014 service area peak demand was 1,370 MW, which occurred on July 2, 2014. The 2014 peak demand included an estimated 697 MW for O&R’s full-service customers and 673 MW for customers participating in its electric energy choice program. “Design weather” for the electric system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes. Since the NYISO can invoke demand reduction programs under specific circumstances, design conditions do not include these programs’ potential impact. However, the O&R forecasted peak demand at design conditions does include the impact of permanent demand reduction programs. The company estimates that, under design weather conditions, the 2015 service area peak demand will be 1,645 MW, including an estimated 819 MW for its fullservice customers and 826 MW for its electric energy choice customers. The company forecasts average annual growth of the peak electric demand in the company’s service area over the next five years at design conditions to be approximately 0.9 percent per year. Electric Supply The electricity O&R sold to its full-service customers in 2014 was purchased under firm power contracts or through the wholesale electricity markets administered by the NYISO and PJM. The company expects that these resources will again be adequate to meet the requirements of its customers in 2015. O&R does not own any electric generating capacity. The company plans to meet its continuing obligation to supply electricity to its customers through a combination of electricity purchased under contracts or purchased through the NYISO or PJM’s wholesale electricity market. To reduce the volatility of its customers’ electric energy costs, the company has contracts to purchase electric energy and enters into derivative transactions to hedge the costs of a portion of its expected purchases under these contracts and through the NYISO and PJM’s wholesale electricity market. For information about the company’s contracts, see Note O to the financial statements in Item 8. In general, the Utilities recover their purchased power costs, including the cost of hedging purchase prices, pursuant to rate provisions approved by the state public utility regulatory authority having jurisdiction. See “Financial and Commodity Market Risks – Commodity Price Risk,” in Item 7 and “Recoverable Energy Costs” in Note A to the financial statements in Item 8. From time to time, certain parties have petitioned the NYSPSC to review these provisions, the elimination of which could have a material adverse effect on the Companies’ financial position, results of operations or liquidity During 2014, 2013 and 2012, Netherland, Sewell & Associates, Inc. ("NSAI") prepared a certification of the prior year's reserves for the Alba field in E. G. The NSAI summary reports are filed as an exhibit to this Annual Report on Form 10-K. Members of the NSAI team have multiple years of industry experience, having worked for large, international oil and gas companies before joining NSAI. The senior technical advisor has over 35 years of practical experience in petroleum geosciences, with over 15 years experience in the estimation and evaluation of reserves. The second team member has over 10 years of practical experience in petroleum engineering, with 5 years experience in the estimation and evaluation of reserves. Both are registered Professional Engineers in the State of Texas. Ryder Scott Company ("Ryder Scott") also performed audits of the prior years' reserves of several of our fields in 2014, 2013 and 2012. Their summary reports are filed as exhibits to this Annual Report on Form 10-K. The team lead for Ryder Scott has over 20 years of industry experience, having worked for a major international oil and gas company before joining Ryder Scott. He is a member of SPE, where he served on the Oil and Gas Reserves Committee, and is a registered Professional Engineer in the State of Texas. Changes in Proved Undeveloped Reserves As of December 31, 2014, 728 mmboe of proved undeveloped reserves were reported, an increase of 101 mmboe from December 31, 2013. The following table shows changes in total proved undeveloped reserves for 2014:
<table><tr><td>Beginning of year</td><td>627</td></tr><tr><td>Revisions of previous estimates</td><td>1</td></tr><tr><td>Improved recovery</td><td>1</td></tr><tr><td>Purchases of reserves in place</td><td>4</td></tr><tr><td>Extensions, discoveries, and other additions</td><td>227</td></tr><tr><td>Dispositions</td><td>-29</td></tr><tr><td>Transfers to proved developed</td><td>-103</td></tr><tr><td>End of year</td><td>728</td></tr></table>
Significant additions to proved undeveloped reserves during 2014 included 121 mmboe in the Eagle Ford and 61 mmboe in the Bakken shale plays due to development drilling. Transfers from proved undeveloped to proved developed reserves included 67 mmboe in the Eagle Ford, 26 mmboe in the Bakken and 1 mmboe in the Oklahoma Resource Basins due to development drilling and completions. Costs incurred in 2014, 2013 and 2012 relating to the development of proved undeveloped reserves, were $3,149 million, $2,536 million and $1,995 million. A total of 102 mmboe was booked as extensions, discoveries or other additions due to the application of reliable technology. Technologies included statistical analysis of production performance, decline curve analysis, pressure and rate transient analysis, reservoir simulation and volumetric analysis. The statistical nature of production performance coupled with highly certain reservoir continuity or quality within the reliable technology areas and sufficient proved undeveloped locations establish the reasonable certainty criteria required for booking proved reserves. Projects can remain in proved undeveloped reserves for extended periods in certain situations such as large development projects which take more than five years to complete, or the timing of when additional gas compression is needed. Of the 728 mmboe of proved undeveloped reserves at December 31, 2014, 19 percent of the volume is associated with projects that have been included in proved reserves for more than five years. The majority of this volume is related to a compression project in E. G. that was sanctioned by our Board of Directors in 2004. The timing of the installation of compression is being driven by the reservoir performance with this project intended to maintain maximum production levels. Performance of this field since the Board sanctioned the project has far exceeded expectations. Estimates of initial dry gas in place increased by roughly 10 percent between 2004 and 2010. During 2012, the compression project received the approval of the E. G. government, allowing design and planning work to progress towards implementation, with completion expected by mid-2016. The other component of Alba proved undeveloped reserves is an infill well approved in 2013 and to be drilled in the second quarter of 2015. Proved undeveloped reserves for the North Gialo development, located in the Libyan Sahara desert, were booked for the first time in 2010. This development, which is anticipated to take more than five years to develop, is executed by the operator and encompasses a multi-year drilling program including the design, fabrication and installation of extensive liquid handling and gas recycling facilities. Anecdotal evidence from similar development projects in the region lead to an expected project execution time frame of more than five years from the time the reserves were initially booked. Interruptions associated with the civil unrest in 2011 and third-party labor strikes and civil unrest in 2013-2014 have also extended the project duration. As of December 31, 2014, future development costs estimated to be required for the development of proved undeveloped crude oil and condensate, NGLs, natural gas and synthetic crude oil reserves related to continuing operations for the years 2015 through 2019 are projected to be $2,915 million, $2,598 million, $2,493 million, $2,669 million and $2,745 million. |
0.73759 | what portion of the company's property is located in united states? | Item 2: Properties Information concerning Applied’s properties is set forth below:
<table><tr><td>(Square feet in thousands)</td><td>United States</td><td>Other Countries</td><td>Total</td></tr><tr><td>Owned</td><td>3,964</td><td>1,652</td><td>5,616</td></tr><tr><td>Leased</td><td>845</td><td>1,153</td><td>1,998</td></tr><tr><td>Total</td><td>4,809</td><td>2,805</td><td>7,614</td></tr></table>
Because of the interrelation of Applied’s operations, properties within a country may be shared by the segments operating within that country. The Company’s headquarters offices are in Santa Clara, California. Products in Semiconductor Systems are manufactured in Santa Clara, California; Austin, Texas; Gloucester, Massachusetts; Kalispell, Montana; Rehovot, Israel; and Singapore. Remanufactured equipment products in the Applied Global Services segment are produced primarily in Austin, Texas. Products in the Display and Adjacent Markets segment are manufactured in Alzenau, Germany; and Tainan, Taiwan. Other products are manufactured in Treviso, Italy. Applied also owns and leases offices, plants and warehouse locations in many locations throughout the world, including in Europe, Japan, North America (principally the United States), Israel, China, India, Korea, Southeast Asia and Taiwan. These facilities are principally used for manufacturing; research, development and engineering; and marketing, sales and customer support. Applied also owns a total of approximately 269 acres of buildable land in Montana, Texas, California, Israel and Italy that could accommodate additional building space. Applied considers the properties that it owns or leases as adequate to meet its current and future requirements. Applied regularly assesses the size, capability and location of its global infrastructure and periodically makes adjustments based on these assessments. General and administrative expense, which excludes integration charges, decreased $42 million, or 3%, to $1.2 billion for the year ended December 31, 2012 compared to $1.3 billion for the prior year primarily due to continued expense controls, partially offset by an increase of approximately $19 million related to higher performance fee-related compensation. Annuities Our Annuities segment provides variable and fixed annuity products of RiverSource Life companies to individual clients. We provide our variable annuity products through our advisors, and fixed annuity products are provided through both affiliated and unaffiliated advisors and financial institutions. Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows. Revenues for our fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances. We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business. Intersegment revenues for this segment reflect fees paid by our Asset Management segment for marketing support and other services provided in connection with the availability of variable insurance trust funds (‘‘VIT Funds’’) under the variable annuity contracts. Intersegment expenses for this segment include distribution expenses for services provided by our Advice & Wealth Management segment, as well as expenses for investment management services provided by our Asset Management segment. The following table presents the results of operations of our Annuities segment on an operating basis:
<table><tr><td> </td><td colspan="2"> Years Ended December 31,</td><td></td><td></td></tr><tr><td> </td><td> 2012</td><td> 2011</td><td colspan="2">Change</td></tr><tr><td> </td><td colspan="4">(in millions)</td></tr><tr><td> Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Management and financial advice fees</td><td>$648</td><td>$622</td><td>$26</td><td>4%</td></tr><tr><td>Distribution fees</td><td>317</td><td>312</td><td>5</td><td>2</td></tr><tr><td>Net investment income</td><td>1,132</td><td>1,279</td><td>-147</td><td>-11</td></tr><tr><td>Premiums</td><td>118</td><td>161</td><td>-43</td><td>-27</td></tr><tr><td>Other revenues</td><td>309</td><td>256</td><td>53</td><td>21</td></tr><tr><td>Total revenues</td><td>2,524</td><td>2,630</td><td>-106</td><td>-4</td></tr><tr><td>Banking and deposit interest expense</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total net revenues</td><td>2,524</td><td>2,630</td><td>-106</td><td>-4</td></tr><tr><td> Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>395</td><td>400</td><td>-5</td><td>-1</td></tr><tr><td>Interest credited to fixed accounts</td><td>688</td><td>714</td><td>-26</td><td>-4</td></tr><tr><td>Benefits, claims, losses and settlement expenses</td><td>419</td><td>405</td><td>14</td><td>3</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>229</td><td>264</td><td>-35</td><td>-13</td></tr><tr><td>Interest and debt expense</td><td>2</td><td>1</td><td>1</td><td>NM</td></tr><tr><td>General and administrative expense</td><td>224</td><td>221</td><td>3</td><td>1</td></tr><tr><td>Total expenses</td><td>1,957</td><td>2,005</td><td>-48</td><td>-2</td></tr><tr><td>Operating earnings</td><td>$567</td><td>$625</td><td>$-58</td><td>-9%</td></tr></table>
NM Not Meaningful. Our Annuities segment pretax operating income, which excludes net realized gains or losses and the market impact on variable annuity guaranteed living benefits (net of hedges and the related DSIC and DAC amortization), decreased $58 million, or 9%, to $567 million for the year ended December 31, 2012 compared to $625 million for the prior year primarily due to a decline in net investment income and an unfavorable impact from unlocking and model changes, partially offset by the market impact on DAC and DSIC, lower interest credited to fixed accounts and higher fee revenues. Results for 2011 included $34 million of additional bond discount accretion investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities, net of DAC and DSIC amortization. The impact of unlocking and model changes was a decrease to pretax operating income of $11 million in 2012 compared to an increase of $1 million in the prior year. The impact of unlocking and model changes for 2012 included a $43 million benefit, net of DAC and DSIC amortization, from an adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior periods. This revision aligns the model to more accurately reflect best estimate assumptions for living benefit utilization going forward. The market impact on DAC and DSIC was a benefit of $29 million in 2012 compared to an expense of $10 million in the prior year. RiverSource variable annuity account balances increased 9% to $68.1 billion at December 31, 2012 compared to the prior year driven by market appreciation. Variable annuity net outflows of $457 million in 2012 reflected the closed book Note 5. Long-Term Obligations Long-Term Obligations consist of the following (in thousands):
<table><tr><td></td><td colspan="2">December 31,</td></tr><tr><td></td><td>2012</td><td>2011</td></tr><tr><td>Senior secured credit agreement:</td><td></td><td></td></tr><tr><td>Term loans payable</td><td>$420,625</td><td>$240,625</td></tr><tr><td>Revolving credit facility</td><td>553,964</td><td>660,730</td></tr><tr><td>Receivables securitization facility</td><td>80,000</td><td>—</td></tr><tr><td>Notes payable through October 2018 at weighted average interest rates of 1.7% and 2.0%, respectively</td><td>42,398</td><td>38,338</td></tr><tr><td>Other long-term debt at weighted average interest rates of 3.3% and 3.2%, respectively</td><td>21,491</td><td>16,383</td></tr><tr><td></td><td>1,118,478</td><td>956,076</td></tr><tr><td>Less current maturities</td><td>-71,716</td><td>-29,524</td></tr><tr><td></td><td>$1,046,762</td><td>$926,552</td></tr></table>
The scheduled maturities of long-term obligations outstanding at December 31, 2012 are as follows (in thousands): |
34.2 | for december 31 , 2009 , what was the total value of segregated collateral for the benefit of brokerage customers in millions? | Mortgage-related exposures carried at fair value The following table provides a summary of the Firm’s mortgage-related exposures, including the impact of risk management activities. These exposures include all mortgage-related securities and loans carried at fair value regardless of their classification within the fair value hierarchy, and that are carried at fair value through earnings or at the lower of cost or fair value. The table excludes securities held in the available-for-sale portfolio, which are reported on page 170 of this Note.
<table><tr><td></td><td colspan="2">Exposure as of December 31, 2009</td><td colspan="2">Exposure as of December 31, 2008</td><td colspan="2">Net gains/(losses) (e)</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td>Reported</td><td>Reported</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td>in income –</td><td>in income –</td></tr><tr><td></td><td></td><td>Net of risk</td><td></td><td>Net of risk</td><td>year ended</td><td>year ended</td></tr><tr><td></td><td></td><td>management</td><td></td><td>management</td><td>December 31,</td><td>December 31,</td></tr><tr><td>(in millions)</td><td>Gross</td><td>activities<sup>(d)</sup></td><td>Gross</td><td>activities (d)</td><td>2009</td><td>2008</td></tr><tr><td> U.S.Residential Mortgage:<sup>(a)(b)(c)</sup></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Prime</td><td>$3,482</td><td>$3,482</td><td>$4,612</td><td>$4,612</td><td></td><td></td></tr><tr><td>Alt-A</td><td>3,030</td><td>3,030</td><td>3,934</td><td>3,917</td><td></td><td></td></tr><tr><td></td><td>6,512</td><td>6,512</td><td>8,546</td><td>8,529</td><td>$537</td><td>$-4,093</td></tr><tr><td>Subprime</td><td>569</td><td>137</td><td>941</td><td>-28</td><td>-76</td><td>-369</td></tr><tr><td> Non-U.S. Residential<sup>(c)</sup></td><td>1,702</td><td>1,321</td><td>1,591</td><td>951</td><td>86</td><td>-292</td></tr><tr><td> Commercial Mortgage:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Securities</td><td>2,337</td><td>1,898</td><td>2,836</td><td>1,438</td><td>257</td><td>-792</td></tr><tr><td>Loans</td><td>2,699</td><td>2,035</td><td>4,338</td><td>2,179</td><td>-333</td><td>-752</td></tr></table>
(a) Excluded at December 31, 2009 and 2008, are certain mortgages and mortgage-related assets that are carried at fair value and recorded in trading assets, such as: (i) U. S. government agency securities that are liquid and of high credit quality of $41.7 billion and $58.9 billion, respectively; (ii) conforming mortgage loans originated with the intent to sell to U. S. government agencies of $11.1 billion and $6.2 billion, respectively; and (iii) reverse mortgages of $4.5 billion and $4.3 billion, respectively, for which the principal risk is mortality risk. Also excluded are MSRs, which are reported in Note 17 on pages 222–225 of this Annual Report. (b) Excluded certain mortgage-related financing transactions, which are collateralized by mortgage-related assets, of $4.1 billion and $5.7 billion at December 31, 2009 and 2008, respectively. These financing transactions are excluded from the table, as they are accounted for on an accrual basis of accounting. For certain financings deemed to be impaired, impairment is measured and recognized based on the fair value of the collateral. Of these financing transactions, $136 million and $1.2 billion were considered impaired at December 31, 2009 and 2008, respectively. (c) Total residential mortgage exposures at December 31, 2009 and 2008, include: (i) securities of $3.4 billion and $4.0 billion, respectively; (ii) loans carried at fair value or the lower of cost or fair value of $5.0 billion and $5.9 billion, respectively; and (iii) forward purchase commitments included in derivative receivables of $358 million and $1.2 billion, respectively. (d) Amounts reflect the effects of derivatives used to manage the credit risk of the gross exposures arising from cash-based instruments. The amounts are presented on a bond- or loan-equivalent (notional) basis. Derivatives are excluded from the gross exposure, as they are principally used for risk management purposes. (e) Net gains and losses include all revenue related to the positions (i. e. , interest income, changes in fair value of the assets, changes in fair value of the related risk management positions, and interest expense related to the liabilities funding those positions). Residential mortgages Classification and Valuation – Residential mortgage loans and MBS are classified within level 2 or level 3 of the valuation hierarchy, depending on the level of liquidity and activity in the markets for a particular product. Level 3 assets include nonagency residential whole loans and subordinated nonagency residential MBS. Products that continue to have reliable price transparency as evidenced by consistent market transactions, such as senior nonagency securities, as well as agency securities, are classified in level 2. For those products classified within level 2 of the valuation hierarchy, the Firm estimates the value of such instruments using a combination of observed transaction prices, independent pricing services and relevant broker quotes. Consideration is given to the nature of the quotes (e. g. , indicative or firm) and the relationship of recently evidenced market activity to the prices provided from independent pricing services. When relevant market activity is not occurring or is limited, the fair value is estimated as follows: Residential mortgage loans – Fair value of residential mortgage loans is estimated by projecting the expected cash flows and discounting those cash flows at a rate reflective of current market liquidity. To estimate the projected cash flows (inclusive of assumptions of prepayment, default rates and loss severity), specific consideration is given to both borrower-specific and other market factors, including, but not limited to: the borrower’s FICO score; the type of collateral supporting the loan; an estimate of the current value of the collateral supporting the loan; the level of documentation for the loan; and market-derived expectations for home price appreciation or depreciation in the respective geography of the borrower. Residential mortgage-backed securities – Fair value of residential MBS is estimated considering the value of the collateral and the specific attributes of the securities held by the Firm. The value of the collateral pool supporting the securities is analyzed using the same techniques and factors described above for residential mortgage loans, albeit in a more aggregated manner across the pool. For example, average FICO scores, average delinquency rates, average loss severities and prepayment rates, among other metrics, may be evaluated. In addition, as each securitization vehicle distributes cash in a manner or order that is predetermined at the inception of the vehicle, the priority in which each particular MBS is allocated cash flows, and the level of credit enhancement that is in place to support those cash flows, are key considerations in deriving the value of residential MBS. Finally, the risk premium that investors demand for securitized products in the current market is factored into the valuation. To benchmark its valuations, the Firm looks to transactions for similar instruments and utilizes independ- Notes to consolidated financial statements JPMorgan Chase & Co. /2009 Annual Report 236 The following table presents the U. S. and non-U. S. components of income before income tax expense/(benefit) and extraordinary gain for the years ended December 31, 2009, 2008 and 2007. Year ended December 31,
<table><tr><td>Year ended December 31, (in millions)</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>U.S.</td><td>$6,263</td><td>$-2,094</td><td>$13,720</td></tr><tr><td>Non-U.S.<sup>(a)</sup></td><td>9,804</td><td>4,867</td><td>9,085</td></tr><tr><td>Income before income taxexpense/(benefit) andextraordinary gain</td><td>$16,067</td><td>$2,773</td><td>$22,805</td></tr></table>
(a) For purposes of this table, non-U. S. income is defined as income generated from operations located outside the U. S. Note 28 – Restrictions on cash and intercompany funds transfers The business of JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N. A. ”) is subject to examination and regulation by the Office of the Comptroller of the Currency (“OCC”). The Bank is a member of the U. S. Federal Reserve System, and its deposits are insured by the FDIC. The Board of Governors of the Federal Reserve System (the “Federal Reserve”) requires depository institutions to maintain cash reserves with a Federal Reserve Bank. The average amount of reserve balances deposited by the Firm’s bank subsidiaries with various Federal Reserve Banks was approximately $821 million and $1.6 billion in 2009 and 2008, respectively. Restrictions imposed by U. S. federal law prohibit JPMorgan Chase and certain of its affiliates from borrowing from banking subsidiaries unless the loans are secured in specified amounts. Such secured loans to the Firm or to other affiliates are generally limited to 10% of the banking subsidiary’s total capital, as determined by the riskbased capital guidelines; the aggregate amount of all such loans is limited to 20% of the banking subsidiary’s total capital. The principal sources of JPMorgan Chase’s income (on a parent company–only basis) are dividends and interest from JPMorgan Chase Bank, N. A. , and the other banking and nonbanking subsidiaries of JPMorgan Chase. In addition to dividend restrictions set forth in statutes and regulations, the Federal Reserve, the OCC and the FDIC have authority under the Financial Institutions Supervisory Act to prohibit or to limit the payment of dividends by the banking organizations they supervise, including JPMorgan Chase and its subsidiaries that are banks or bank holding companies, if, in the banking regulator’s opinion, payment of a dividend would constitute an unsafe or unsound practice in light of the financial condition of the banking organization. At January 1, 2010 and 2009, JPMorgan Chase’s banking subsidiaries could pay, in the aggregate, $3.6 billion and $17.0 billion, respectively, in dividends to their respective bank holding companies without the prior approval of their relevant banking regulators. The capacity to pay dividends in 2010 will be supplemented by the banking subsidiaries’ earnings during the year. In compliance with rules and regulations established by U. S. and non-U. S. regulators, as of December 31, 2009 and 2008, cash in the amount of $24.0 billion and $34.8 billion, respectively, and securities with a fair value of $10.2 billion and $23.4 billion, respectively, were segregated in special bank accounts for the benefit of securities and futures brokerage customers. Note 29 – Capital The Federal Reserve establishes capital requirements, including well-capitalized standards for the consolidated financial holding company. The OCC establishes similar capital requirements and standards for the Firm’s national banks, including JPMorgan Chase Bank, N. A. , and Chase Bank USA, N. A. There are two categories of risk-based capital: Tier 1 capital and Tier 2 capital. Tier 1 capital includes common stockholders’ equity, qualifying preferred stock and minority interest less goodwill and other adjustments. Tier 2 capital consists of preferred stock not qualifying as Tier 1, subordinated long-term debt and other instruments qualifying as Tier 2, and the aggregate allowance for credit losses up to a certain percentage of risk-weighted assets. Total regulatory capital is subject to deductions for investments in certain subsidiaries. Under the risk-based capital guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios of Tier 1 and Total (Tier 1 plus Tier 2) capital to risk-weighted assets, as well as minimum leverage ratios (which are defined as Tier 1 capital to average adjusted on–balance sheet assets). Failure to meet these minimum requirements could cause the Federal Reserve to take action. Banking subsidiaries also are subject to these capital requirements by their respective primary regulators. As of December 31, 2009 and 2008, JPMorgan Chase and all of its banking subsidiaries were well-capitalized and met all capital requirements to which each was subject. CONSOLIDATED RESULTS OF OPERATIONS This following section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three-year period ended December 31, 2009. Factors that related primarily to a single business segment are discussed in more detail within that business segment. For a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations, see pages 135–139 of this Annual Report. Revenue Year ended December 31,
<table><tr><td>Year ended December 31, (in millions)</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Investment banking fees</td><td>$7,087</td><td>$5,526</td><td>$6,635</td></tr><tr><td>Principal transactions</td><td>9,796</td><td>-10,699</td><td>9,015</td></tr><tr><td>Lending- and deposit-related fees</td><td>7,045</td><td>5,088</td><td>3,938</td></tr><tr><td>Asset management, administrationand commissions</td><td>12,540</td><td>13,943</td><td>14,356</td></tr><tr><td>Securities gains</td><td>1,110</td><td>1,560</td><td>164</td></tr><tr><td>Mortgage fees and related income</td><td>3,678</td><td>3,467</td><td>2,118</td></tr><tr><td>Credit card income</td><td>7,110</td><td>7,419</td><td>6,911</td></tr><tr><td>Other income</td><td>916</td><td>2,169</td><td>1,829</td></tr><tr><td>Noninterest revenue</td><td>49,282</td><td>28,473</td><td>44,966</td></tr><tr><td>Net interest income</td><td>51,152</td><td>38,779</td><td>26,406</td></tr><tr><td>Total net revenue</td><td>$100,434</td><td>$67,252</td><td>$71,372</td></tr></table>
2009 compared with 2008 Total net revenue was $100.4 billion, up by $33.2 billion, or 49%, from the prior year. The increase was driven by higher principal transactions revenue, primarily related to improved performance across most fixed income and equity products, and the absence of net markdowns on legacy leveraged lending and mortgage positions in IB, as well as higher levels of trading gains and investment securities income in Corporate/Private Equity. Results also benefited from the impact of the Washington Mutual transaction, which contributed to increases in net interest income, lending- and deposit-related fees, and mortgage fees and related income. Lastly, higher investment banking fees also contributed to revenue growth. These increases in revenue were offset partially by reduced fees and commissions from the effect of lower market levels on assets under management and custody, and the absence of proceeds from the sale of Visa shares in its initial public offering in the first quarter of 2008. Investment banking fees increased from the prior year, due to higher equity and debt underwriting fees. For a further discussion of investment banking fees, which are primarily recorded in IB, see IB segment results on pages 63–65 of this Annual Report. Principal transactions revenue, which consists of revenue from trading and private equity investing activities, was significantly higher compared with the prior year. Trading revenue increased, driven by improved performance across most fixed income and equity products; modest net gains on legacy leveraged lending and mortgage-related positions, compared with net markdowns of $10.6 billion in the prior year; and gains on trading positions in Corporate/Private Equity, compared with losses in the prior year of $1.1 billion on markdowns of Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) preferred securities. These increases in revenue were offset partially by an aggregate loss of $2.3 billion from the tightening of the Firm’s credit spread on certain structured liabilities and derivatives, compared with gains of $2.0 billion in the prior year from widening spreads on these liabilities and derivatives. The Firm’s private equity investments produced a slight net loss in 2009, a significant improvement from a larger net loss in 2008. For a further discussion of principal transactions revenue, see IB and Corporate/Private Equity segment results on pages 63–65 and 82–83, respectively, and Note 3 on pages 156– 173 of this Annual Report. Lending- and deposit-related fees rose from the prior year, predominantly reflecting the impact of the Washington Mutual transaction and organic growth in both lending- and deposit-related fees in RFS, CB, IB and TSS. For a further discussion of lending- and depositrelated fees, which are mostly recorded in RFS, TSS and CB, see the RFS segment results on pages 66–71, the TSS segment results on pages 77–78, and the CB segment results on pages 75–76 of this Annual Report. The decline in asset management, administration and commissions revenue compared with the prior year was largely due to lower asset management fees in AM from the effect of lower market levels. Also contributing to the decrease were lower administration fees in TSS, driven by the effect of market depreciation on certain custody assets and lower securities lending balances; and lower brokerage commissions revenue in IB, predominantly related to lower transaction volume. For additional information on these fees and commissions, see the segment discussions for TSS on pages 77–78, and AM on pages 79–81 of this Annual Report. Securities gains were lower in 2009 and included credit losses related to other-than-temporary impairment and lower gains on the sale of MasterCard shares of $241 million in 2009, compared with $668 million in 2008. These decreases were offset partially by higher gains from repositioning the Corporate investment securities portfolio in connection with managing the Firm’s structural interest rate risk. For a further discussion of securities gains, which are mostly recorded in Corporate/Private Equity, see the Corporate/Private Equity segment discussion on pages 82–83 of this Annual Report. Mortgage fees and related income increased slightly from the prior year, as higher net mortgage servicing revenue was largely offset by lower production revenue. The increase in net mortgage servicing revenue was driven by growth in average third-party loans serviced as a result of the Washington Mutual transaction. Mortgage production revenue declined from the prior year, reflecting an increase in estimated losses from the repurchase of previously-sold loans, offset partially by wider margins on new originations. For a discussion of mortgage fees and related income, which is recorded primarily in RFS’s Consumer Lending business, see the Consumer Lending discussion on pages 68–71 of this Annual Report. Credit card income, which includes the impact of the Washington Mutual transaction, decreased slightly compared with the prior year, Note 26 – Income taxes JPMorgan Chase and its eligible subsidiaries file a consolidated U. S. federal income tax return. JPMorgan Chase uses the asset and liability method to provide income taxes on all transactions recorded in the Consolidated Financial Statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized. JPMorgan Chase’s expense for income taxes includes the current and deferred portions of that expense. A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize. Due to the inherent complexities arising from the nature of the Firm’s businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made. Agreement of tax liabilities between JPMorgan Chase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years. Thus, the Firm’s final tax-related assets and liabilities may ultimately be different from those currently reported. The components of income tax expense/(benefit) included in the Consolidated Statements of Income were as follows for each of the years ended December 31, 2012, 2011, and 2010. Income tax expense/(benefit) |
1,171.8 | What's the sum of allCash and cash equivalents and Unsettled fund receivables that are positive in 2011? (in million) | PART I ITEM 1. BUSINESS Our Company Founded in 1886, American Water Works Company, Inc. , (the “Company,” “American Water” or “AWW”) is a Delaware holding company. American Water is the most geographically diversified, as well as the largest publicly-traded, United States water and wastewater utility company, as measured by both operating revenues and population served. As a holding company, we conduct substantially all of our business operations through our subsidiaries. Our approximately 6,400 employees provide an estimated 15 million people with drinking water, wastewater and/or other water-related services in 47 states and one Canadian province. Operating Segments We report our results of operations in two operating segments: the Regulated Businesses and the MarketBased Operations. Additional information with respect to our operating segment results is included in the section entitled “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 18 of the Consolidated Financial Statements. Regulated Businesses Our primary business involves the ownership of subsidiaries that provide water and wastewater utility services to residential, commercial, industrial and other customers, including sale for resale and public authority customers. We report the results of this business in our Regulated Businesses segment. Our subsidiaries that provide these services are generally subject to economic regulation by certain state commissions or other entities engaged in economic regulation, hereafter referred to as Public Utility Commissions, or “PUCs,” of the states in which we operate. The federal and state governments also regulate environmental, health and safety, and water quality matters. Our Regulated Businesses segment operating revenues were $2,674.3 million for 2014, $2,539.9 for 2013, $2,564.4 million for 2012, accounting for 88.8%, 90.1% and 89.9%, respectively, of total operating revenues for the same periods. The following table sets forth our Regulated Businesses operating revenues, number of customers and an estimate of population served as of December 31, 2014:
<table><tr><td></td><td>OperatingRevenues(In millions)</td><td>% of Total</td><td>Number ofCustomers</td><td>% of Total</td><td>EstimatedPopulationServed(In millions)</td><td>% of Total</td></tr><tr><td>New Jersey</td><td>$652.3</td><td>24.5%</td><td>648,066</td><td>20.2%</td><td>2.7</td><td>22.7%</td></tr><tr><td>Pennsylvania</td><td>605.4</td><td>22.6%</td><td>666,415</td><td>20.7%</td><td>2.2</td><td>18.5%</td></tr><tr><td>Missouri</td><td>270.2</td><td>10.1%</td><td>464,498</td><td>14.4%</td><td>1.5</td><td>12.7%</td></tr><tr><td>Illinois (a)</td><td>262.3</td><td>9.8%</td><td>312,017</td><td>9.7%</td><td>1.3</td><td>10.9%</td></tr><tr><td>California</td><td>209.8</td><td>7.8%</td><td>174,198</td><td>5.4%</td><td>0.6</td><td>5.0%</td></tr><tr><td>Indiana</td><td>200.6</td><td>7.5%</td><td>293,666</td><td>9.1%</td><td>1.2</td><td>10.1%</td></tr><tr><td>West Virginia (b)</td><td>127.0</td><td>4.7%</td><td>170,371</td><td>5.3%</td><td>0.6</td><td>5.0%</td></tr><tr><td>Subtotal (Top Seven States)</td><td>2,327.6</td><td>87.0%</td><td>2,729,231</td><td>84.8%</td><td>10.1</td><td>84.9%</td></tr><tr><td>Other (c)</td><td>346.7</td><td>13.0%</td><td>489,961</td><td>15.2%</td><td>1.8</td><td>15.1%</td></tr><tr><td>Total Regulated Businesses</td><td>$2,674.3</td><td>100.0%</td><td>3,219,192</td><td>100.0%</td><td>11.9</td><td>100.0%</td></tr></table>
(a) Includes Illinois-American Water Company, which we refer to as ILAWC and American Lake Water Company, also a regulated subsidiary in Illinois. The company’s Condensed Consolidated Statement of Changes in Equity in Part II, Item 8, Financial Statements and Supplementary Data, contains a detailed analysis of the changes in balance sheet equity line items. The following table presents a comparative analysis of significant detailed balance sheet assets and liabilities:
<table><tr><td>$ in millions</td><td>2011</td><td>2010</td><td>$ Change</td><td>% Change</td></tr><tr><td>Cash and cash equivalents</td><td>727.4</td><td>740.5</td><td>-13.1</td><td>-1.8%</td></tr><tr><td>Unsettled fund receivables</td><td>444.4</td><td>513.4</td><td>-69.0</td><td>-13.4%</td></tr><tr><td>Current investments</td><td>283.7</td><td>308.8</td><td>-25.1</td><td>-8.1%</td></tr><tr><td>Assets held for policyholders</td><td>1,243.5</td><td>1,295.4</td><td>-51.9</td><td>-4.0%</td></tr><tr><td>Non-current investments</td><td>200.8</td><td>164.4</td><td>36.4</td><td>22.1%</td></tr><tr><td>Investments of consolidated investment products</td><td>6,629.0</td><td>7,206.0</td><td>-577.0</td><td>-8.0%</td></tr><tr><td>Intangible assets, net</td><td>1,322.8</td><td>1,337.2</td><td>-14.4</td><td>-1.1%</td></tr><tr><td>Goodwill</td><td>6,907.9</td><td>6,980.2</td><td>-72.3</td><td>-1.0%</td></tr><tr><td>Unsettled fund payables</td><td>439.6</td><td>504.8</td><td>-65.2</td><td>-12.9%</td></tr><tr><td>Policyholder payables</td><td>1,243.5</td><td>1,295.4</td><td>-51.9</td><td>-4.0%</td></tr><tr><td>Current maturities of total debt</td><td>215.1</td><td>—</td><td>215.1</td><td>N/A</td></tr><tr><td>Long-term debt</td><td>1,069.6</td><td>1,315.7</td><td>-246.1</td><td>-18.7%</td></tr><tr><td>Long-term debt of consolidated investment products</td><td>5,512.9</td><td>5,865.4</td><td>-352.5</td><td>-6.0%</td></tr></table>
Cash and cash equivalents Cash and cash equivalents decreased by $13.1 million from $740.5 million at December 31, 2010 to $727.4 million at December 31, 2011. See “Cash Flows” in the following section within this Management's Discussion and Analysis for additional discussion regarding the movements in cash flows during the periods. See Item 8, Financial Statements and Supplementary Data - Note 1, “Accounting Policies - Cash and Cash Equivalents,” regarding requirements to mandate the retention of liquid resources in certain jurisdictions. Unsettled fund receivables and payables Unsettled fund receivables decreased by $69.0 million from $513.4 million at December 31, 2010 to $444.4 million at December 31, 2011, due primarily to lower transaction activity between funds and investors in late December 2011 when compared to late December 2010 in our offshore funds. In the company's capacity as sponsor of UITs, the company records receivables from brokers, dealers, and clearing organizations for unsettled sell trades of securities and UITs in addition to receivables from customers for unsettled sell trades of UITs. In our U. K. and offshore activities, unsettled fund receivables are created by the normal settlement periods on transactions initiated by certain clients. The presentation of the unsettled fund receivables and substantially offsetting payables ($439.6 million at December 31, 2011 down from $504.8 million at December 31, 2010 ) at trade date reflects the legal relationship between the underlying investor and the company. Investments (current and non-current) As of December 31, 2011 we had $484.5 million in investments, of which $283.7 million were current investments and $200.8 million were non-current investments. Included in current investments are $63.5 million of seed money investments in affiliated funds used to seed funds as we launch new products, and $184.4 million of investments related to assets held for deferred compensation plans, which are also held primarily in affiliated funds. Seed investments decreased by $35.9 million during the year ended December 31, 2011, due primarily to market decreases and net disposals of seed money investments. Investments held to hedge deferred compensation awards increased by $18.9 million during the year, primarily due to additional investments in affiliated funds to hedge economically new employee plan awards. Included in non-current investments are $193.1 million in equity method investments in our Chinese joint ventures and in certain of the company’s private equity partnerships, real estate partnerships and other investments (December 31, 2010: $156.9 million). The increase of $36.2 million in equity method investments includes an increase of $32.1 million in partnership investments due to a $40.2 million co-investment in new European and Asian real estate funds, other capital calls and valuation improvements offset by distributions and capital returns during the period. The value of the joint venture investments and other non-controlling equity method investments increased by $4.1 million during the year as a result of current year earnings of $17.2 million, foreign exchange rate movements which added $2.8 million to the value and capital injections of $1.6 million, offset by annual dividends paid of $17.5 million to the company. Provisional Amounts Deferred tax assets and liabilities: The company remeasured certain deferred tax assets and liabilities based on the tax rates at which they are expected to reverse in the future, typically 21% under the 2017 Tax Act. However, the company is still analyzing certain aspects of the legislation and refining its calculations. Any updates or changes could affect the measurement of these balances or give rise to new deferred tax amounts. The provisional income tax beneffit recorded related to the remeasurement of the deferred tax balance was $130.7 million at December 31, 2017. Foreign tax effects: The one-time transition tax is based on the total post-1986 earnings and profits (E&P) that were previously deferred from U. S. income taxes. The company does not anticipate incurring an income tax liability and therefore no provision has been made. However, the company has not completed its analysis as to the existence of foreign subsidiaries it may be deemed to indirectly own (or partially own) through attribution or by way of its investment in various fund products which in turn may hold ownership in foreign subsidiaries where the transition tax may apply. Therefore, our determination as to the need for a net transition tax liability may change once this analysis has been completed. At December 31, 2017 the company had tax loss carryforwards accumulated in certain taxing jurisdictions in the aggregate of $413.3 million (2016: $243.8 million), approximately $35.2 million of which will expire between 2018 and 2020, $15.2 million of which will expire after 2020, with the remaining $362.9 million having an indefinite life. The increase in tax loss carryforwards from 2016 to 2017 of $169.5 million results from the acquisition of the European ETF business ($160.1 million) and the impact of foreign exchange translation on non-U. S. dollar denominated losses ($23.1 million) with the remainder of the movement due to additional losses not recognized ($15.8 million), offset with loss expiration and utilization ($30.0 million). A valuation allowance has been recorded against the deferred tax assets related to these losses where a history of losses in the respective tax jurisdiction makes it unlikely that the deferred tax asset will be realized. A reconciliation between the statutory rate and the effective tax rate on income from operations for the years ended December 31, 2017, 2016 and 2015 is as follows:
<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Statutory Rate</td><td>35.0%</td><td>35.0%</td><td>35.0%</td></tr><tr><td>Foreign jurisdiction statutory income tax rates</td><td>-9.6%</td><td>-8.1%</td><td>-9.2%</td></tr><tr><td>State taxes, net of federal tax effect</td><td>2.2%</td><td>1.6%</td><td>1.6%</td></tr><tr><td>Impact of the 2017 Tax Act</td><td>-9.3%</td><td>—%</td><td>—%</td></tr><tr><td>Change in valuation allowance for unrecognized tax losses</td><td>0.4%</td><td>-0.4%</td><td>-0.1%</td></tr><tr><td>Share Based Compensation</td><td>-0.3%</td><td>—%</td><td>—%</td></tr><tr><td>Other</td><td>1.2%</td><td>0.3%</td><td>1.8%</td></tr><tr><td>(Gains)/losses attributable to noncontrolling interests</td><td>-0.8%</td><td>-0.4%</td><td>0.1%</td></tr><tr><td>Effective tax rate per Consolidated Statements of Income</td><td>18.8%</td><td>28.0%</td><td>29.2%</td></tr></table>
The company's subsidiaries operate in severalt taxing jurisdictions around the world, each with its own statutory income tax rate. As a result, the blended average statutory tax rate will vary from year to year depending on the mix of the profits and losses of the company's subsidiaries. The majority of our profits are earned in the U. S. and the U. K. The enacted U. K. statutory tax rate, for U. S. GAAP purposes, was 19% as of December 31, 2017. As of December 31, 2017, the U. S. federal statutory tax rate was 35%. The 2017 Tax Act enacted for U. S. GAAP purposes on December 22, 2017 reduces the U. S. federal statutory tax rate to 21% from January 1, 2018. Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis The Grand Gulf recovery variance is primarily due to increased recovery of higher costs resulting from the Grand Gulf uprate. The volume/weather variance is primarily due to the effects of more favorable weather on residential sales and an increase in industrial sales primarily due to growth in the refining segment. The fuel recovery variance is primarily due to: ? the deferral of increased capacity costs that will be recovered through fuel adjustment clauses; ? the expiration of the Evangeline gas contract on January 1, 2013; and ? an adjustment to deferred fuel costs recorded in the third quarter 2012 in accordance with a rate order from the PUCT issued in September 2012. See Note 2 to the financial statements for further discussion of this PUCT order issued in Entergy Texas's 2011 rate case. The MISO deferral variance is primarily due to the deferral in April 2013, as approved by the APSC, of costs incurred since March 2010 related to the transition and implementation of joining the MISO RTO. The decommissioning trusts variance is primarily due to lower regulatory credits resulting from higher realized income on decommissioning trust fund investments. There is no effect on net income as the credits are offset by interest and investment income. Entergy Wholesale Commodities Following is an analysis of the change in net revenue comparing 2013 to 2012.
<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2012 net revenue</td><td>$1,854</td></tr><tr><td>Mark-to-market</td><td>-58</td></tr><tr><td>Nuclear volume</td><td>-24</td></tr><tr><td>Nuclear fuel expenses</td><td>-20</td></tr><tr><td>Nuclear realized price changes</td><td>58</td></tr><tr><td>Other</td><td>-8</td></tr><tr><td>2013 net revenue</td><td>$1,802</td></tr></table>
As shown in the table above, net revenue for Entergy Wholesale Commodities decreased by approximately $52 million in 2013 primarily due to: ? the effect of rising forward power prices on electricity derivative instruments that are not designated as hedges, including additional financial power sales conducted in the fourth quarter 2013 to offset the planned exercise of in-the-money protective call options and to lock in margins. These additional sales did not qualify for hedge accounting treatment, and increases in forward prices after those sales were made accounted for the majority of the negative mark-to-market variance. It is expected that the underlying transactions will result in earnings in first quarter 2014 as these positions settle. See Note 16 to the financial statements for discussion of derivative instruments; ? the decrease in net revenue compared to prior year resulting from the exercise of resupply options provided for in purchase power agreements where Entergy Wholesale Commodities may elect to supply power from another source when the plant is not running. Amounts related to the exercise of resupply options are included in the GWh billed in the table below; and bonds, the actual average life of our investments can not be known at the time of the investment. We do know that the average life will not be less than the average life to next call and will not exceed the average life to maturity. Data for both of these average life measures is provided in the above chart. During 2005-2007, especially during 2005, there have been periods when yields available on acceptable-quality long-term non-callable securities did not meet our objectives. During such periods, we have invested in shorter-term securities. Some of these periods were characterized by relatively flat or inverted yield curves. During such periods, we did not have to give up much yield to invest in shorter-term securities, and we took on less credit risk than had we invested longer-term. Prior to 2007, we generally did not invest in securities with maturity dates more than 30 years after the acquisition date. During 2007, we invested some funds in hybrid securities (bonds, trust preferred securities and redeemable preferred stocks) with very long scheduled maturity dates, often exceeding 50 years. In virtually all cases, such hybrid securities are callable many years prior to the scheduled maturity date. As shown in the chart above, the effective annual yield and average life to maturity on funds invested during 2005 is significantly lower than that of funds invested during 2006 and 2007. This difference is reflective of the fact that, consistent with the investment environment and strategy described above, we invested relatively more funds in lower yielding, shorter-term investments in 2005 than we did in 2006- 2007. Due primarily to our investments in hybrid securities as described above, the average life of funds invested during 2007 (to both next call and maturity) is significantly higher than that of investments during 2005-2006. Given the long-term fixed-rate characteristics of our policy liabilities, we believe that investments with average lives in excess of 20 years are appropriate. New cash flow available to us for investment was affected by issuer calls as a result of the lowinterest environment experienced during the past three years. Issuers are more likely to call bonds when rates are low because they often can refinance them at a lower cost. Calls increase funds available for investment, but they can negatively affect portfolio yield if they cause us to replace higher-yielding bonds with those available at lower prevailing yields. Issuer calls were $848 million in 2007, $229 million in 2006, and $226 million in 2005. As long as we continue our current investment strategy and the average yield on new investments is less than the average yield of the portfolio and of assets disposed of, the average yield on fixed maturity assets in the portfolio should decline. Because of the significant investable cash flow generated from investments and operations, Torchmark will benefit if yield rates available on new investments increase. Portfolio Analysis. Because Torchmark has recently invested almost exclusively in fixed-maturity securities, the relative percentage of our assets invested in various types of investments varies from industry norms. |
2 | How many kinds of Gross are greater than 10 in for Natural Gas Wells? | Investments Prior to our acquisition of Keystone on October 12, 2007, we held common shares of Keystone, which were classified as an available-for-sale investment security. Accordingly, the investment was included in other assets at its fair value, with the unrealized gain excluded from earnings and included in accumulated other comprehensive income, net of applicable taxes. Upon our acquisition of Keystone on October 12, 2007, the unrealized gain was removed from accumulated other comprehensive income, net of applicable taxes, and the original cost of the common shares was considered a component of the purchase price. Fair Value of Financial Instruments Our debt is reflected on the balance sheet at cost. Based on current market conditions, our interest rate margins are below the rate available in the market, which causes the fair value of our debt to fall below the carrying value. The fair value of our term loans (see Note 6, “Long-Term Obligations”) is approximately $570 million at December 31, 2009, as compared to the carrying value of $596 million. We estimated the fair value of our term loans by calculating the upfront cash payment a market participant would require to assume our obligations. The upfront cash payment, excluding any issuance costs, is the amount that a market participant would be able to lend at December 31, 2009 to an entity with a credit rating similar to ours and achieve sufficient cash inflows to cover the scheduled cash outflows under our term loans. The carrying amounts of our cash and equivalents, net trade receivables and accounts payable approximate fair value. We apply the market approach to value our financial assets and liabilities, which include the cash surrender value of life insurance, deferred compensation liabilities and interest rate swaps. The market approach utilizes available market information to estimate fair value. Required fair value disclosures are included in Note 8, “Fair Value Measurements. ” Accrued Expenses We self-insure a portion of employee medical benefits under the terms of our employee health insurance program. We purchase certain stop-loss insurance to limit our liability exposure. We also self-insure a portion of our property and casualty risk, which includes automobile liability, general liability, workers’ compensation and property under deductible insurance programs. The insurance premium costs are expensed over the contract periods. A reserve for liabilities associated with these losses is established for claims filed and claims incurred but not yet reported based upon our estimate of ultimate cost, which is calculated using analyses of historical data. We monitor new claims and claim development as well as trends related to the claims incurred but not reported in order to assess the adequacy of our insurance reserves. Self-insurance reserves on the Consolidated Balance Sheets are net of claims deposits of $0.7 million and $0.8 million, at December 31, 2009 and 2008, respectively. While we do not expect the amounts ultimately paid to differ significantly from our estimates, our insurance reserves and corresponding expenses could be affected if future claim experience differs significantly from historical trends and assumptions. Product Warranties Some of our mechanical products are sold with a standard six-month warranty against defects. We record the estimated warranty costs at the time of sale using historical warranty claim information to project future warranty claims activity and related expenses. The changes in the warranty reserve are as follows (in thousands):
<table><tr><td>Balance as of January 1, 2008</td><td>$580</td></tr><tr><td>Warranty expense</td><td>3,681</td></tr><tr><td>Warranty claims</td><td>-3,721</td></tr><tr><td>Balance as of December 31, 2008</td><td>540</td></tr><tr><td>Warranty expense</td><td>5,033</td></tr><tr><td>Warranty claims</td><td>-4,969</td></tr><tr><td>Balance as of December 31, 2009</td><td>$604</td></tr></table>
requirements. See additional information included in Critical Accounting Policies – Commodity Derivative Instruments and Item 7A. Quantitative and Qualitative Disclosures About Market Risk. Certain of our commodity contracts were executed in connection with the Patina Merger, prior to the global crude oil and natural gas price escalations which began in early 2005. The settlements of these contracts have reduced our cash flows. However, these contracts expired in December 2008. Our remaining commodity contracts were executed in more favorable price environments. Although we cannot predict market prices, our remaining commodity contract positions should result in more favorable cash flows as compared to our commodity contract positions in prior periods. See Item 8. Financial Statements and Supplementary Data – Note 6 – Derivative Instruments and Hedging Activities for our current hedge positions. Cash Flows Summary cash flow information is as follows:
<table><tr><td></td><td colspan="3">Year Ended December 31,</td></tr><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Total cash provided by (used in):</td><td></td><td></td><td></td></tr><tr><td>Operating activities</td><td>$2,285</td><td>$2,017</td><td>$1,730</td></tr><tr><td>Investing activities</td><td>-2,132</td><td>-1,403</td><td>-1,098</td></tr><tr><td>Financing activities</td><td>327</td><td>-107</td><td>-589</td></tr><tr><td>Increase in cash and cash equivalents</td><td>$480</td><td>$507</td><td>$43</td></tr></table>
Operating Activities—Net cash provided by operating activities totaled $2.3 billion in 2008, an increase of $268 million, or 13%, as compared with 2007. The increase was primarily due to a significant increase in oil, gas and NGL sales resulting from higher average realized crude oil and natural gas prices during the first nine months of 2008. The revenue increase was slightly offset by higher production costs and G&A expense. Net cash provided by operating activities includes dividends received from equity method investees. Net cash provided by operating activities was $2.0 billion in 2007, an increase of $287 million, or 17% as compared with 2006. The increase was due primarily to increased sales resulting from higher average realized crude oil prices and higher average realized US natural gas prices. These increases were partially offset by higher exploration expense and G&A expense. In addition, cash flows from operating activities in 2007 included dividends from equity method investees. Cash distributions from equity method investees received in 2006 were repayments of loans and were included in investing activities. See Results of Operations—Income from Equity Method Investees. Investing Activities—The primary use of cash in investing activities is for capital spending, which may be offset by proceeds from property sales or distributions from equity method investees. Net cash used in investing activities totaled $2.1 billion in 2008, as compared with $1.4 billion in 2007. In 2008 we had an expanded capital budget, with increased acquisition, development and exploratory activity in onshore US and deepwater Gulf of Mexico areas as well as increased exploratory activity in international locations including Equatorial Guinea and Israel. Our total additions to property, plant and equipment plus acquisitions ($2.3 billion) were minimally offset by proceeds from property sales ($131 million). In comparison, in 2007, we had additions to property, plant and equipment ($1.4 billion) primarily due to development activity in the US and North Sea and acquisition and exploratory activities in the US and West Africa. Expenditures were minimally offset by proceeds from property sales of $9 million. In comparison, in 2006 cash flows from investing activities totaled $1.1 billion. We had acquisitions and additions to property, plant and equipment ($1.8 billion) due to the acquisition of U. S. Exploration plus additional development and exploratory activity in the US and development activity in the North Sea. These expenditures were offset by proceeds from the sale of our significant Gulf of Mexico shelf properties ($520 million) and net distributions received from equity method investees ($151 million). The distributions from equity method investees were the result of repayment of loans and therefore were included in cash flows from investing activities. See Results of Operations—Income from Equity Method Investees. (4) Includes production through November 24, 2010. Our Block 3 PSC was terminated by the Ecuadorian government on November 25, 2010. Intercompany natural gas sales were eliminated for accounting purposes. Electricity sales are included in other revenues. See Termination of Ecuador PSC above. (5) Volumes represent sales of condensate and LPG from the LPG plant in Equatorial Guinea. Revenues from sales of crude oil and natural gas have accounted for 90% or more of consolidated revenues for each of the last three fiscal years. At December 31, 2010, our operated properties accounted for approximately 64% of our total production. Being the operator of a property improves our ability to directly influence production levels and the timing of projects, while also enhancing our control over operating expenses and capital expenditures. Productive Wells The number of productive crude oil and natural gas wells in which we held an interest at December 31, 2010 was as follows:
<table><tr><td></td><td colspan="2">Crude Oil Wells</td><td colspan="2">Natural Gas Wells</td><td colspan="2">Total</td></tr><tr><td></td><td>Gross</td><td>Net</td><td>Gross</td><td>Net</td><td>Gross</td><td>Net</td></tr><tr><td>United States</td><td>6,543</td><td>5,759.5</td><td>6,804</td><td>4,968.1</td><td>13,347</td><td>10,727.6</td></tr><tr><td>Equatorial Guinea</td><td>4</td><td>1.6</td><td>13</td><td>4.4</td><td>17</td><td>6.0</td></tr><tr><td>Israel</td><td>-</td><td>-</td><td>6</td><td>2.8</td><td>6</td><td>2.8</td></tr><tr><td>North Sea</td><td>18</td><td>3.8</td><td>8</td><td>1.0</td><td>26</td><td>4.8</td></tr><tr><td>China</td><td>19</td><td>10.8</td><td>1</td><td>0.6</td><td>20</td><td>11.4</td></tr><tr><td>Total</td><td>6,584</td><td>5,775.7</td><td>6,832</td><td>4,976.9</td><td>13,416</td><td>10,752.6</td></tr></table>
Productive wells are producing wells and wells mechanically capable of production. A gross well is a well in which a working interest is owned. The number of gross wells is the total number of wells in which a working interest is owned. The number of net wells is the sum of the fractional working interests owned in gross wells expressed as whole numbers and fractions thereof. Wells with multiple completions are counted as one well in the table above. Developed and Undeveloped Acreage Developed and undeveloped acreage (including both leases and concessions) held at December 31, 2010 was as follows:
<table><tr><td></td><td colspan="2">Developed Acreage</td><td colspan="2">Undeveloped Acreage</td></tr><tr><td></td><td>Gross</td><td>Net</td><td>Gross</td><td>Net</td></tr><tr><td>(thousands)</td><td></td><td></td><td></td><td></td></tr><tr><td>United States</td><td></td><td></td><td></td><td></td></tr><tr><td>Onshore</td><td>1,535</td><td>1,012</td><td>1,815</td><td>1,318</td></tr><tr><td>Offshore</td><td>65</td><td>35</td><td>562</td><td>397</td></tr><tr><td>Total United States</td><td>1,600</td><td>1,047</td><td>2,377</td><td>1,715</td></tr><tr><td>International</td><td></td><td></td><td></td><td></td></tr><tr><td>Equatorial Guinea</td><td>56</td><td>19</td><td>573</td><td>233</td></tr><tr><td>Cameroon</td><td>-</td><td>-</td><td>1,125</td><td>563</td></tr><tr><td>Israel</td><td>62</td><td>29</td><td>1,592</td><td>660</td></tr><tr><td>North Sea-1</td><td>52</td><td>7</td><td>213</td><td>41</td></tr><tr><td>China</td><td>7</td><td>4</td><td>-</td><td>-</td></tr><tr><td>Suriname</td><td>-</td><td>-</td><td>3,087</td><td>1,389</td></tr><tr><td>France-2</td><td>-</td><td>-</td><td>2,808</td><td>2,036</td></tr><tr><td>Nicaragua</td><td>-</td><td>-</td><td>1,977</td><td>1,977</td></tr><tr><td>Cyprus-3</td><td>-</td><td>-</td><td>1,136</td><td>795</td></tr><tr><td>India</td><td>-</td><td>-</td><td>694</td><td>347</td></tr><tr><td>Total International</td><td>177</td><td>59</td><td>13,205</td><td>8,041</td></tr><tr><td>Total</td><td>1,777</td><td>1,106</td><td>15,582</td><td>9,756</td></tr></table>
(1) The North Sea includes acreage in the UK and the Netherlands. (2) We are currently funding a 2-D seismic survey over the acreage in return for a working interest in the concession. (3) A portion of the acreage has been assigned to a partner and the agreement is awaiting government approval. Developed acreage is comprised of leased acres that are within an area spaced by or assignable to a productive well. Undeveloped acreage is comprised of leased acres with defined remaining terms and not within an area spaced by or assignable to a productive well. A gross acre is any leased acre in which a working interest is owned. A net acre is comprised of the total of the owned working interest(s) in a gross acre expressed in a fractional format. Noble Energy, Inc. Index to Financial Statements Notes to Consolidated Financial Statements 135 crude oil and natural gas production, commodity prices based on sales contract terms or commodity price curves as of the date of the estimate, estimated operating and development costs, and a risk-adjusted discount rate of 10%. The fair values of assets held for sale were based on anticipated sales proceeds less costs to sell. See Note 5. Asset Impairments. Additional Fair Value Disclosures Debt The fair value of fixed-rate, public debt is estimated based on the published market prices for the same or similar issues. As such, we consider the fair value of our public fixed rate debt to be a Level 1 measurement on the fair value hierarchy. See Note 10. Long-Term Debt. Fair value information regarding our debt is as follows:
<table><tr><td></td><td colspan="2">December 31,2015</td><td colspan="2">December 31,2014</td></tr><tr><td>(millions)</td><td>Carrying Amount</td><td>Fair Value</td><td>Carrying Amount</td><td>Fair Value</td></tr><tr><td>Long-Term Debt, Net<sup>-1</sup></td><td>$7,626</td><td>$7,105</td><td>$5,758</td><td>$6,179</td></tr></table>
(1) Net of unamortized discount, premium and debt issuance costs and excludes capital lease and other obligations. No floating rate debt was outstanding at December 31, 2015 or December 31, 2014. Note 14. Earnings (Loss) Per Share Basic earnings (loss) per share of common stock is computed using the weighted average number of shares of common stock outstanding during each period. The diluted earnings (loss) per share of common stock include the effect of outstanding stock options, shares of restricted stock, or shares of our common stock held in a rabbi trust (when dilutive). The following table summarizes the calculation of basic and diluted earnings (loss) per share: |
2,013 | Which year is Management and financial advice fees the highest? | Protection The following table presents the results of operations of our Protection segment on an operating basis:
<table><tr><td></td><td colspan="2">Years Ended December 31,</td><td></td><td></td></tr><tr><td></td><td>2013</td><td>2012</td><td colspan="2">Change</td></tr><tr><td></td><td colspan="3">(in millions)</td><td></td></tr><tr><td>Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Management and financial advice fees</td><td>$58</td><td>$55</td><td>$3</td><td>5%</td></tr><tr><td>Distribution fees</td><td>91</td><td>91</td><td>—</td><td>—</td></tr><tr><td>Net investment income</td><td>439</td><td>429</td><td>10</td><td>2</td></tr><tr><td>Premiums</td><td>1,188</td><td>1,121</td><td>67</td><td>6</td></tr><tr><td>Other revenues</td><td>410</td><td>392</td><td>18</td><td>5</td></tr><tr><td>Total revenues</td><td>2,186</td><td>2,088</td><td>98</td><td>5</td></tr><tr><td>Banking and deposit interest expense</td><td>—</td><td>1</td><td>-1</td><td>—</td></tr><tr><td>Total net revenues</td><td>2,186</td><td>2,087</td><td>99</td><td>5</td></tr><tr><td>Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>62</td><td>53</td><td>9</td><td>17</td></tr><tr><td>Interest credited to fixed accounts</td><td>145</td><td>143</td><td>2</td><td>1</td></tr><tr><td>Benefits, claims, losses and settlement expenses</td><td>1,252</td><td>1,146</td><td>106</td><td>9</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>118</td><td>110</td><td>8</td><td>7</td></tr><tr><td>Interest and debt expense</td><td>25</td><td>24</td><td>1</td><td>4</td></tr><tr><td>General and administrative expense</td><td>248</td><td>238</td><td>10</td><td>4</td></tr><tr><td>Total expenses</td><td>1,850</td><td>1,714</td><td>136</td><td>8</td></tr><tr><td>Operating earnings</td><td>$336</td><td>$373</td><td>$-37</td><td>-10%</td></tr></table>
Our Protection segment pretax operating income, which excludes net realized gains or losses and the market impact on indexed universal life benefits (net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual), decreased $37 million, or 10%, to $336 million for the year ended December 31, 2013 compared to $373 million for the prior year reflecting lower auto and home earnings. Net Revenues Net revenues, which exclude net realized gains or losses and the unearned revenue amortization and the reinsurance accrual offset to the market impact on indexed universal life benefits, increased $99 million, or 5%, to $2.2 billion for the year ended December 31, 2013 compared to $2.1 billion for the prior year primarily due to the impact of unlocking and growth in auto and home premiums, as well as an increase in net investment income. Net investment income, which excludes net realized gains or losses, increased $10 million, or 2%, to $439 million for the year ended December 31, 2013 compared to $429 million for the prior year due to an increase in investment income on fixed maturities driven by higher average invested assets for life and health. Premiums increased $67 million, or 6%, to $1.2 billion for the year ended December 31, 2013 compared to $1.1 billion for the prior year primarily due to growth in auto and home premiums driven by new policy sales growth across market segments, primarily from our affinity relationships with Costco and Progressive. Auto and home policy counts increased 11% year-over-year. Other revenues increased $18 million, or 5%, to $410 million for the year ended December 31, 2013 compared to $392 million for the prior year primarily due to an $18 million unfavorable impact from unlocking for the year ended December 31, 2013 compared to a $41 million unfavorable impact in the prior year. The primary driver of the unlocking impact to other revenues in both periods was lower projected gains on reinsurance contracts resulting from favorable mortality experience. Expenses Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC amortization), increased $136 million, or 8%, to $1.9 billion for the year ended December 31, 2013 compared to $1.7 billion for the prior year primarily due to an increase in benefits, claims, losses and settlement expenses. Distribution expenses increased $9 million, or 17%, to $62 million for the year ended December 31, 2013 compared to $53 million for the prior year driven by higher compensation related to higher sales. Benefits, claims, losses and settlement expenses, which exclude the market impact on indexed universal life benefits (net of hedges), increased $106 million, or 9%, to $1.3 billion for the year ended December 31, 2013 compared to $1.1 billion for the prior year due to the impact of unlocking, higher expenses related to our auto and home business, an We expect net interest expense of approximately $135 to $140 in 2011, subject to capital deployment activities during the year. Our effective tax rate was 31.2 percent in 2008, 31.5 percent in 2009 and 30.7 percent in 2010. The 2008 rate includeda$35, or approximately $0.09 per-share, benefit from the settlement of tax refund litigation, which reduced the 2008 tax rate by 100 basis points. We anticipate an effective tax rate of approximately 31 percent in 2011. For additional discussion of tax matters, see Note E to the Consolidated Financial Statements. In 2008, we entered into an agreement to sell our Spanish nitrocellulose operation and recognized a pretax loss of $11 in discontinued operations in anticipation of the sale. The sale of this operation was completed in 2010. Our reported revenues exclude the revenues associated with this divested business. We have presented the operating results of this business, along with the loss from the sale, as discontinued operations, net of income taxes. R E V I EW OF BU S I NESS GROU P S AEROSPACE Review of 2010 vs. 2009
<table><tr><td>Year Ended December 31</td><td>2009</td><td>2010</td><td colspan="2">Variance</td></tr><tr><td>Revenues</td><td>$5,171</td><td>$5,299</td><td>$128</td><td>2.5%</td></tr><tr><td>Operating earnings</td><td>707</td><td>860</td><td>153</td><td>21.6%</td></tr><tr><td>Operating margin</td><td>13.7%</td><td>16.2%</td><td></td><td></td></tr><tr><td>Gulfstream aircraft deliveries (in units):</td><td></td><td></td><td></td><td></td></tr><tr><td>Green</td><td>94</td><td>99</td><td>5</td><td>5.3%</td></tr><tr><td>Completion</td><td>110</td><td>89</td><td>-21</td><td>-19.1%</td></tr></table>
The Aerospace group’s revenues increased in 2010 compared with 2009 due primarily to steady growth in aircraft services activity throughout the year. Aircraft manufacturing and outfitting revenues remained consistent with 2009 levels, with an increase in manufac- turing volume offset by reduced outfitting work. Aircraft manufacturing revenues increased 9 percent in 2010, the result of additional deliveries and a more favorable mix of green Gulfstream aircraft. The decline in aircraft outfitting revenues was associated primarily with the group’s completions work for other original equipment manufacturers (OEMs), reflecting decreased OEM production across the broader business-jet market. Aircraft services revenues, which include both Gulfstream and Jet Aviation’s maintenance and repair work, fixed-base operations and aircraft management services, increased 15 percent in 2010, reflecting the growing installed base of business-jet aircraft and increased utilization as the business-jet market recovers following the economic downturn. Revenues from sales of pre-owned aircraft were down slightly from 2009. The group’s operating earnings improved significantly in 2010 compared with 2009, with improvements in all areas of the group’s portfolio. The components of the earnings growth were as follows:
<table><tr><td>Aircraft manufacturing and outfitting</td><td>$68</td></tr><tr><td>Pre-owned aircraft</td><td>40</td></tr><tr><td>Aircraft services</td><td>29</td></tr><tr><td>SG&A/other</td><td>16</td></tr><tr><td>Total increase in operating earnings</td><td>$153</td></tr></table>
The group’s aircraft manufacturing and outfitting earnings were up in 2010 compared with 2009 due to the increase in aircraft manufacturing volume, as well as improved pricing on large-cabin aircraft and mix shift within large-cabin models. This increase was offset in part by reduced liquidated damages associated with fewer customer defaults. Margins for these activities were up 190 basis points compared with 2009. Pre-owned aircraft earnings improved significantly from 2009, when the group wrote down the carrying value of its pre-owned aircraft inventory. Pricing in the pre-owned market has improved since mid-2009, particularly for large-cabin aircraft, although inventories across the industry remain higher than historic norms. In 2010, the Aerospace group realized modest profits on its pre-owned sales, took no pre-owned aircraft write-downs and ended the year with no pre-owned aircraft in inventory. Consistent with the increased volume, aircraft services earnings continued to improve from 2009. Margins associated with aircraft services were up 70 basis points in 2010 due to improved marketplace pricing. The group’s operating earnings in 2010 were also favorably impacted by the timing of R&D expenditures and the absence of severance costs associated with workforce reductions in 2009. As a result of the factors discussed above, the group’s overall operating margins increased 250 basis points in 2010 compared with 2009. Review of 2009 vs. 2008
<table><tr><td>Year Ended December 31</td><td>2008</td><td>2009</td><td colspan="2">Variance</td></tr><tr><td>Revenues</td><td>$5,512</td><td>$5,171</td><td>$ -341</td><td>-6.2%</td></tr><tr><td>Operating earnings</td><td>1,021</td><td>707</td><td>-314</td><td>-30.8%</td></tr><tr><td>Operating margin</td><td>18.5%</td><td>13.7%</td><td></td><td></td></tr><tr><td>Gulfstream aircraft deliveries (in units):</td><td></td><td></td><td></td><td></td></tr><tr><td>Green</td><td>156</td><td>94</td><td>-62</td><td>-39.7%</td></tr><tr><td>Completion</td><td>152</td><td>110</td><td>-42</td><td>-27.6%</td></tr></table>
The Aerospace group’s revenues decreased in 2009, the result ofadecline in sales of Gulfstream aircraft that was offset in part by the addition of Jet Aviation, which we acquired in the fourth quarter of 2008. We reduced Gulfstream’s 2009 aircraft production, primarily in the group’s mid-cabin In summary, our cash flows for each period were as follows:
<table><tr><td>Years Ended(In Millions)</td><td>Dec 30,2017</td><td>Dec 31,2016</td><td>Dec 26,2015</td></tr><tr><td>Net cash provided by operating activities</td><td>$22,110</td><td>$21,808</td><td>$19,018</td></tr><tr><td>Net cash used for investing activities</td><td>-15,762</td><td>-25,817</td><td>-8,183</td></tr><tr><td>Net cash provided by (used for) financing activities</td><td>-8,475</td><td>-5,739</td><td>1,912</td></tr><tr><td>Net increase (decrease) in cash and cash equivalents</td><td>$-2,127</td><td>$-9,748</td><td>$12,747</td></tr></table>
OPERATING ACTIVITIES Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities. For 2017 compared to 2016, the $302 million increase in cash provided by operating activities was due to changes to working capital partially offset by adjustments for non-cash items and lower net income. Tax Reform did not have an impact on our 2017 cash provided by operating activities. The increase in cash provided by operating activities was driven by increased income before taxes and $1.0 billion receipts of customer deposits. These increases were partially offset by increased inventory and accounts receivable. Income taxes paid, net of refunds, in 2017 compared to 2016 were $2.9 billion higher due to higher income before taxes, taxable gains on sales of ASML, and taxes on the ISecG divestiture. We expect approximately $2.0 billion of additional customer deposits in 2018. For 2016 compared to 2015, the $2.8 billion increase in cash provided by operating activities was due to adjustments for non-cash items and changes in working capital, partially offset by lower net income. The adjustments for non-cash items were higher in 2016 primarily due to restructuring and other charges and the change in deferred taxes, partially offset by lower depreciation. INVESTING ACTIVITIES Investing cash flows consist primarily of capital expenditures; investment purchases, sales, maturities, and disposals; and proceeds from divestitures and cash used for acquisitions. Our capital expenditures were $11.8 billion in 2017 ($9.6 billion in 2016 and $7.3 billion in 2015). The decrease in cash used for investing activities in 2017 compared to 2016 was primarily due to higher net activity of available-for sale-investments in 2017, proceeds from our divestiture of ISecG in 2017, and higher maturities and sales of trading assets in 2017. This activity was partially offset by higher capital expenditures in 2017. The increase in cash used for investing activities in 2016 compared to 2015 was primarily due to our completed acquisition of Altera, net purchases of trading assets in 2016 compared to net sales of trading assets in 2015, and higher capital expenditures in 2016. This increase was partially offset by lower investments in non-marketable equity investments. FINANCING ACTIVITIES Financing cash flows consist primarily of repurchases of common stock, payment of dividends to stockholders, issuance and repayment of short-term and long-term debt, and proceeds from the sale of shares of common stock through employee equity incentive plans. The increase in cash used for financing activities in 2017 compared to 2016 was primarily due to net long-term debt activity, which was a use of cash in 2017 compared to a source of cash in 2016. During 2017, we repurchased $3.6 billion of common stock under our authorized common stock repurchase program, compared to $2.6 billion in 2016. As of December 30, 2017, $13.2 billion remained available for repurchasing common stock under the existing repurchase authorization limit. We base our level of common stock repurchases on internal cash management decisions, and this level may fluctuate. Proceeds from the sale of common stock through employee equity incentive plans totaled $770 million in 2017 compared to $1.1 billion in 2016. Our total dividend payments were $5.1 billion in 2017 compared to $4.9 billion in 2016. We have paid a cash dividend in each of the past 101 quarters. In January 2018, our Board of Directors approved an increase to our cash dividend to $1.20 per share on an annual basis. The board has declared a quarterly cash dividend of $0.30 per share of common stock for Q1 2018. The dividend is payable on March 1, 2018 to stockholders of record on February 7, 2018. Cash was used for financing activities in 2016 compared to cash provided by financing activities in 2015, primarily due to fewer debt issuances and the repayment of debt in 2016. This activity was partially offset by repayment of commercial paper in 2015 and fewer common stock repurchases in 2016. |
117 | what are the total current assets of metropolitan? | Humana Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) not be estimated based on observable market prices, and as such, unobservable inputs were used. For auction rate securities, valuation methodologies include consideration of the quality of the sector and issuer, underlying collateral, underlying final maturity dates, and liquidity. Recently Issued Accounting Pronouncements There are no recently issued accounting standards that apply to us or that will have a material impact on our results of operations, financial condition, or cash flows.3. ACQUISITIONS On December 21, 2012, we acquired Metropolitan Health Networks, Inc. , or Metropolitan, a Medical Services Organization, or MSO, that coordinates medical care for Medicare Advantage beneficiaries and Medicaid recipients, primarily in Florida. We paid $11.25 per share in cash to acquire all of the outstanding shares of Metropolitan and repaid all outstanding debt of Metropolitan for a transaction value of $851 million, plus transaction expenses. The preliminary fair values of Metropolitan’s assets acquired and liabilities assumed at the date of the acquisition are summarized as follows:
<table><tr><td></td><td>Metropolitan (in millions)</td></tr><tr><td>Cash and cash equivalents</td><td>$49</td></tr><tr><td>Receivables, net</td><td>28</td></tr><tr><td>Other current assets</td><td>40</td></tr><tr><td>Property and equipment</td><td>22</td></tr><tr><td>Goodwill</td><td>569</td></tr><tr><td>Other intangible assets</td><td>263</td></tr><tr><td>Other long-term assets</td><td>1</td></tr><tr><td>Total assets acquired</td><td>972</td></tr><tr><td>Current liabilities</td><td>-22</td></tr><tr><td>Other long-term liabilities</td><td>-99</td></tr><tr><td>Total liabilities assumed</td><td>-121</td></tr><tr><td>Net assets acquired</td><td>$851</td></tr></table>
The goodwill was assigned to the Health and Well-Being Services segment and is not deductible for tax purposes. The other intangible assets, which primarily consist of customer contracts and trade names, have a weighted average useful life of 8.4 years. On October 29, 2012, we acquired a noncontrolling equity interest in MCCI Holdings, LLC, or MCCI, a privately held MSO headquartered in Miami, Florida that coordinates medical care for Medicare Advantage and Medicaid beneficiaries primarily in Florida and Texas. The Metropolitan and MCCI transactions are expected to provide us with components of a successful integrated care delivery model that has demonstrated scalability to new markets. A substantial portion of the revenues for both Metropolitan and MCCI are derived from services provided to Humana Medicare Advantage members under capitation contracts with our health plans. In addition, Metropolitan and MCCI provide services to Medicare Advantage and Medicaid members under capitation contracts with third party health plans. Under these capitation agreements with Humana and third party health plans, Metropolitan and MCCI assume financial risk associated with these Medicare Advantage and Medicaid members. Humana Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 17. EXPENSES ASSOCIATED WITH LONG-DURATION INSURANCE PRODUCTS Premiums associated with our long-duration insurance products accounted for approximately 2% of our consolidated premiums and services revenue for the year ended December 31, 2012. We use long-duration accounting for products such as long-term care, life insurance, annuities, and certain health and other supplemental policies sold to individuals because they are expected to remain in force for an extended period beyond one year and because premium received in the earlier years is intended to pay anticipated benefits to be incurred in future years. As a result, we defer policy acquisition costs, primarily consisting of commissions, and amortize them over the estimated life of the policies in proportion to premiums earned. In addition, we establish reserves for future policy benefits in recognition of the fact that some of the premium received in the earlier years is intended to pay anticipated benefits to be incurred in future years. These reserves are recognized on a net level premium method based on interest rates, mortality, morbidity, withdrawal and maintenance expense assumptions from published actuarial tables, modified based upon actual experience. The assumptions used to determine the liability for future policy benefits are established and locked in at the time each contract is acquired and would only change if our expected future experience deteriorated to the point that the level of the liability, together with the present value of future gross premiums, are not adequate to provide for future expected policy benefits. Long-term care policies provide for long-duration coverage and, therefore, our actual claims experience will emerge many years after assumptions have been established. The risk of a deviation of the actual interest rates, morbidity rates, and mortality rates from those assumed in our reserves are particularly significant to our closed block of long-term care policies. We monitor the loss experience of these long-term care policies and, when necessary, apply for premium rate increases through a regulatory filing and approval process in the jurisdictions in which such products were sold. To the extent premium rate increases and/ or loss experience vary from our acquisition date assumptions, future adjustments to reserves could be required. The table below presents deferred acquisition costs and future policy benefits payable associated with our long-duration insurance products for the years ended December 31, 2012 and 2011.
<table><tr><td></td><td colspan="2">2012</td><td colspan="2">2011</td></tr><tr><td></td><td> Deferred acquisition costs</td><td>Future policy benefits payable</td><td> Deferred acquisition costs</td><td>Future policy benefits payable</td></tr><tr><td></td><td colspan="4">(in millions)</td></tr><tr><td>Other long-term assets</td><td>$149</td><td>$0</td><td>$114</td><td>$0</td></tr><tr><td>Trade accounts payable and accrued expenses</td><td>0</td><td>-63</td><td>0</td><td>-58</td></tr><tr><td>Long-term liabilities</td><td>0</td><td>-1,858</td><td>0</td><td>-1,663</td></tr><tr><td>Total asset (liability)</td><td>$149</td><td>$-1,921</td><td>$114</td><td>$-1,721</td></tr></table>
In addition, future policy benefits payable include amounts of $220 million at December 31, 2012 and $224 million at December 31, 2011 which are subject to 100% coinsurance agreements as more fully described in Note 18. Benefits expense associated with future policy benefits payable was $136 million in 2012, $114 million in 2011, and $266 million in 2010. Benefits expense for 2012 and 2010 included net charges of $29 million and $139 million, respectively, associated with our long-term care policies discussed further below. Amortization of deferred acquisition costs included in operating costs was $44 million in 2012, $34 million in 2011, and $198 million in 2010. Amortization expense for 2010 included a write-down of deferred acquisition costs of $147 million discussed further below.
<table><tr><td></td><td colspan="2"></td><td colspan="2">Change</td></tr><tr><td></td><td>2011</td><td>2010</td><td>Dollars</td><td>Percentage</td></tr><tr><td></td><td colspan="3">(in millions)</td><td></td></tr><tr><td> Premiums and Services Revenue:</td><td></td><td></td><td></td><td></td></tr><tr><td>Premiums:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fully-insured commercial group</td><td>$4,782</td><td>$5,169</td><td>$-387</td><td>-7.5%</td></tr><tr><td>Group Medicare Advantage</td><td>3,152</td><td>3,021</td><td>131</td><td>4.3%</td></tr><tr><td>Group Medicare stand-alone PDP</td><td>8</td><td>5</td><td>3</td><td>60.0%</td></tr><tr><td>Total group Medicare</td><td>3,160</td><td>3,026</td><td>134</td><td>4.4%</td></tr><tr><td>Group specialty</td><td>935</td><td>885</td><td>50</td><td>5.6%</td></tr><tr><td>Total premiums</td><td>8,877</td><td>9,080</td><td>-203</td><td>-2.2%</td></tr><tr><td>Services</td><td>356</td><td>395</td><td>-39</td><td>-9.9%</td></tr><tr><td>Total premiums and services revenue</td><td>$9,233</td><td>$9,475</td><td>$-242</td><td>-2.6%</td></tr><tr><td> Income before income taxes</td><td>$242</td><td>$288</td><td>$-46</td><td>-16.0%</td></tr><tr><td>Benefit ratio</td><td>82.4%</td><td>82.4%</td><td></td><td>0.0%</td></tr><tr><td>Operating cost ratio</td><td>17.8%</td><td>17.5%</td><td></td><td>0.3%</td></tr></table>
Pretax Results ? Employer Group segment pretax income decreased $46 million, or 16%, to $242 million in 2011 primarily due to the impact of minimum benefit ratios required under the Health Insurance Reform Legislation which became effective in 2011. Enrollment ? Fully-insured commercial group medical membership decreased 72,000 members, or 5.7%, from December 31, 2010 to December 31, 2011 primarily due to continued pricing discipline in a highly competitive environment for large group business partially offset by small group business membership gains. ? Group ASO commercial medical membership decreased 161,300 members, or 11.1%, from December 31, 2010 to December 31, 2011 primarily due to continued pricing discipline in a highly competitive environment for self-funded accounts. Premiums revenue ? Employer Group segment premiums decreased by $203 million, or 2.2%, from 2010 to $8.9 billion for 2011 primarily due to lower average commercial group medical membership year-over-year and rebates associated with minimum benefit ratios required under the Health Insurance Reform Legislation which became effective in 2011, partially offset by an increase in group Medicare Advantage membership. Rebates result in the recognition of lower premiums revenue, as amounts are set aside for payments to commercial customers during the following year. Benefits expense ? The Employer Group segment benefit ratio of 82.4% for 2011 was unchanged from 2010 due to offsetting factors. Factors increasing the 2011 ratio compared to the 2010 ratio include growth in our group Medicare Advantage products which generally carry a higher benefit ratio than our fully-insured commercial group products and the effect of rebates accrued in 2011 associated with the minimum benefit ratios required under the Health Insurance Reform Legislation. Factors decreasing the 2011 ratio compared to the 2010 ratio include the beneficial effect of higher favorable prior-period medical claims reserve development in 2011 versus 2010 and lower utilization of benefits in our commercial group |
741 | What is the sum of Total gross recoveries in 2012 and Fixed annuity in 2006? (in million) | CITIZENS FINANCIAL GROUP, INC. SELECTED STATISTICAL INFORMATION
<table><tr><td></td><td colspan="5">As of and for the Year Ended December 31,</td></tr><tr><td>(dollars in millions)</td><td>2014</td><td>2013</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Gross Charge-offs:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>-$31</td><td>-$72</td><td>-$127</td><td>-$170</td><td>-$267</td></tr><tr><td>Commercial real estate</td><td>-12</td><td>-36</td><td>-129</td><td>-208</td><td>-420</td></tr><tr><td>Leases</td><td>—</td><td>—</td><td>-1</td><td>—</td><td>-1</td></tr><tr><td>Total commercial</td><td>-43</td><td>-108</td><td>-257</td><td>-378</td><td>-688</td></tr><tr><td>Residential mortgages</td><td>-36</td><td>-54</td><td>-85</td><td>-98</td><td>-121</td></tr><tr><td>Home equity loans</td><td>-55</td><td>-77</td><td>-121</td><td>-124</td><td>-131</td></tr><tr><td>Home equity lines of credit</td><td>-80</td><td>-102</td><td>-118</td><td>-106</td><td>-112</td></tr><tr><td>Home equity loans serviced by others<sup>-2</sup></td><td>-55</td><td>-119</td><td>-220</td><td>-300</td><td>-443</td></tr><tr><td>Home equity lines of credit serviced by others<sup>-2</sup></td><td>-12</td><td>-27</td><td>-48</td><td>-66</td><td>-97</td></tr><tr><td>Automobile</td><td>-41</td><td>-19</td><td>-29</td><td>-47</td><td>-94</td></tr><tr><td>Student</td><td>-54</td><td>-74</td><td>-88</td><td>-97</td><td>-118</td></tr><tr><td>Credit cards</td><td>-64</td><td>-68</td><td>-68</td><td>-85</td><td>-176</td></tr><tr><td>Other retail</td><td>-53</td><td>-55</td><td>-76</td><td>-85</td><td>-111</td></tr><tr><td>Total retail</td><td>-450</td><td>-595</td><td>-853</td><td>-1,008</td><td>-1,403</td></tr><tr><td>Total gross charge-offs</td><td>-$493</td><td>-$703</td><td>-$1,110</td><td>-$1,386</td><td>-$2,091</td></tr><tr><td>Gross Recoveries:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$35</td><td>$46</td><td>$64</td><td>$42</td><td>$33</td></tr><tr><td>Commercial real estate</td><td>23</td><td>40</td><td>47</td><td>47</td><td>23</td></tr><tr><td>Leases</td><td>—</td><td>1</td><td>2</td><td>3</td><td>1</td></tr><tr><td>Total commercial</td><td>58</td><td>87</td><td>113</td><td>92</td><td>57</td></tr><tr><td>Residential mortgages</td><td>11</td><td>10</td><td>16</td><td>15</td><td>11</td></tr><tr><td>Home equity loans</td><td>24</td><td>26</td><td>27</td><td>27</td><td>32</td></tr><tr><td>Home equity lines of credit</td><td>15</td><td>19</td><td>9</td><td>9</td><td>5</td></tr><tr><td>Home equity loans serviced by others<sup>-2</sup></td><td>21</td><td>23</td><td>22</td><td>18</td><td>16</td></tr><tr><td>Home equity lines of credit serviced by others<sup>-2</sup></td><td>5</td><td>5</td><td>5</td><td>4</td><td>4</td></tr><tr><td>Automobile</td><td>20</td><td>12</td><td>21</td><td>35</td><td>46</td></tr><tr><td>Student</td><td>9</td><td>13</td><td>14</td><td>12</td><td>57</td></tr><tr><td>Credit cards</td><td>7</td><td>7</td><td>8</td><td>9</td><td>14</td></tr><tr><td>Other retail</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total retail</td><td>112</td><td>115</td><td>122</td><td>129</td><td>185</td></tr><tr><td>Total gross recoveries</td><td>$170</td><td>$202</td><td>$235</td><td>$221</td><td>$242</td></tr><tr><td>Net (Charge-offs)/Recoveries:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$4</td><td>-$26</td><td>-$63</td><td>-$128</td><td>-$234</td></tr><tr><td>Commercial real estate</td><td>11</td><td>4</td><td>-82</td><td>-161</td><td>-397</td></tr><tr><td>Leases</td><td>—</td><td>1</td><td>1</td><td>3</td><td>—</td></tr><tr><td>Total commercial</td><td>15</td><td>-21</td><td>-144</td><td>-286</td><td>-631</td></tr><tr><td>Residential mortgages</td><td>-25</td><td>-44</td><td>-69</td><td>-83</td><td>-110</td></tr><tr><td>Home equity loans</td><td>-31</td><td>-51</td><td>-94</td><td>-97</td><td>-99</td></tr><tr><td>Home equity lines of credit</td><td>-65</td><td>-83</td><td>-109</td><td>-97</td><td>-107</td></tr><tr><td>Home equity loans serviced by others<sup>-2</sup></td><td>-34</td><td>-96</td><td>-198</td><td>-282</td><td>-427</td></tr><tr><td>Home equity lines of credit serviced by others<sup>-2</sup></td><td>-7</td><td>-22</td><td>-43</td><td>-62</td><td>-93</td></tr><tr><td>Automobile</td><td>-21</td><td>-7</td><td>-8</td><td>-12</td><td>-48</td></tr><tr><td>Student</td><td>-45</td><td>-61</td><td>-74</td><td>-85</td><td>-61</td></tr><tr><td>Credit cards</td><td>-57</td><td>-61</td><td>-60</td><td>-76</td><td>-162</td></tr><tr><td>Other retail</td><td>-53</td><td>-55</td><td>-76</td><td>-85</td><td>-111</td></tr><tr><td>Total retail</td><td>-338</td><td>-480</td><td>-731</td><td>-879</td><td>-1,218</td></tr><tr><td>Total net (charge-offs)/recoveries</td><td>-$323</td><td>-$501</td><td>-$875</td><td>-$1,165</td><td>-$1,849</td></tr><tr><td>Ratio of net charge-offs to average loans and leases</td><td>-0.36%</td><td>-0.59%</td><td>-1.01%</td><td>-1.35%</td><td>-2.04%</td></tr></table>
The estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed, including a reconciliation to the total purchase consideration, are as follows (in thousands):
<table><tr><td>Cash</td><td>$45,826</td></tr><tr><td>Customer-related intangible assets</td><td>42,721</td></tr><tr><td>Acquired technology</td><td>27,954</td></tr><tr><td>Trade name</td><td>2,901</td></tr><tr><td>Other assets</td><td>2,337</td></tr><tr><td>Deferred income tax assets (liabilities)</td><td>-9,788</td></tr><tr><td>Other liabilities</td><td>-49,797</td></tr><tr><td>Total identifiable net assets</td><td>62,154</td></tr><tr><td>Goodwill</td><td>203,828</td></tr><tr><td>Total purchase consideration</td><td>$265,982</td></tr></table>
Goodwill of $203.8 million arising from the acquisition, included in the Asia-Pacific segment, was attributable to expected growth opportunities in Australia and New Zealand, as well as growth opportunities and operating synergies in integrated payments in our existing Asia-Pacific and North America markets. Goodwill associated with this acquisition is not deductible for income tax purposes. The customer-related intangible assets have an estimated amortization period of 15 years. The acquired technology has an estimated amortization period of 15 years. The trade name has an estimated amortization period of 5 years. NOTE 3 — SETTLEMENT PROCESSING ASSETS AND OBLIGATIONS Funds settlement refers to the process of transferring funds for sales and credits between card issuers and merchants. For transactions processed on our systems, we use our internal network to provide funding instructions to financial institutions that in turn fund the merchants. We process funds settlement under two models, a sponsorship model and a direct membership model. Under the sponsorship model, we are designated as a Merchant Service Provider by MasterCard and an Independent Sales Organization by Visa, which means that member clearing banks (“Member”) sponsor us and require our adherence to the standards of the payment networks. In certain markets, we have sponsorship or depository and clearing agreements with financial institution sponsors. These agreements allow us to route transactions under the Members’ control and identification numbers to clear credit card transactions through MasterCard and Visa. In this model, the standards of the payment networks restrict us from performing funds settlement or accessing merchant settlement funds, and, instead, require that these funds be in the possession of the Member until the merchant is funded. Under the direct membership model, we are members in various payment networks, allowing us to process and fund transactions without third-party sponsorship. In this model, we route and clear transactions directly through the card brand’s network and are not restricted from performing funds settlement. Otherwise, we process these transactions similarly to how we process transactions in the sponsorship model. We are required to adhere to the standards of the payment networks in which we are direct members. We maintain relationships with financial institutions, which may also serve as our Member sponsors for other card brands or in other markets, to assist with funds settlement. Timing differences, interchange fees, Merchant Reserves and exception items cause differences between the amount received from the payment networks and the amount funded to the merchants. These intermediary balances arising in our settlement process for direct merchants are reflected as settlement processing assets and obligations on our consolidated balance sheets. Settlement processing assets and obligations include the components outlined below: ? Interchange reimbursement. Our receivable from merchants for the portion of the discount fee related to reimbursement of the interchange fee. x The Executive Benefits business offers corporate-owned universal and variable universal life insurance (“COLI”) and bankowned universal and variable universal life insurance (“BOLI”) to small to mid-sized banks and mid to large-sized corporations, mostly through executive benefit brokers.11 The Group Protection segment focuses on offering group term life, disability income and dental insurance primarily in the small to mid-sized employer marketplace for their eligible employees. Employer Markets - Retirement Products The Defined Contribution business is the largest business in this segment and focuses on 403(b) plans and 401(k) plans. Lincoln has a strong historical presence in the 403(b) space where assets account for about 61% of total assets under management in this segment as of December 31, 2007. The 401(k) business accounts for 51% of our new deposits as of December 31, 2007. The Retirement Products segment’s deposits (in millions) were as follows:
<table><tr><td></td><td colspan="3"> For the Years Ended December 31,</td></tr><tr><td></td><td> 2007</td><td> 2006</td><td> 2005</td></tr><tr><td>Variable portion of variable annuity</td><td>$2,355</td><td>$2,525</td><td>$2,254</td></tr><tr><td>Fixed portion of variable annuity</td><td>351</td><td>441</td><td>520</td></tr><tr><td>Total variable annuity</td><td>2,706</td><td>2,966</td><td>2,774</td></tr><tr><td>Fixed annuity</td><td>754</td><td>506</td><td>563</td></tr><tr><td>Alliance Mutual Fund</td><td>2,090</td><td>1,113</td><td>1,066</td></tr><tr><td>Total annuity and Alliance</td><td>5,550</td><td>4,585</td><td>4,403</td></tr><tr><td>COLI and BOLI</td><td>303</td><td>267</td><td>210</td></tr><tr><td>Total deposits</td><td>$5,853</td><td>$4,852</td><td>$4,613</td></tr></table>
Retirement Products - Defined Contribution Products Employer Markets currently offers four primary products to the employer-sponsored market: Lincoln American Legacy RetirementSM, LINCOLN DIRECTORSM, LINCOLN ALLIANCE? and Multi-Fund?. Lincoln American Legacy RetirementSM , LINCOLN DIRECTORSM and Multi-Fund? products are group variable annuities. LINCOLN ALLIANCE? is a mutual fund-based product. These products cover both the 403(b) and 401(k) marketplace. Both 403(b) and 401(k) plans are tax-deferred, defined contribution plans offered to employees of an entity to enable them to save for retirement. The 403(b) plans are available to employees of educational institutions and certain non-profit entities, while 401(k) plans are generally available to employees of forprofit entities. The investment options for our annuities encompass the spectrum of asset classes with varying levels of risk and include both equity and fixed income. As of December 31, 2007, healthcare clients accounted for 43% of account values for these products. The Lincoln American Legacy RetirementSM variable annuity, launched in the third quarter of 2006, offers 51 investment options with 10 fund families, 20 of which are American Funds? options. This product is focused on the micro to small corporate 401(k) market. LALR account values were $49 million as of December 31, 2007. LINCOLN DIRECTORSM is a defined contribution retirement plan solution available to businesses of all sizes, but focused on micro- to small-sized corporations, generally with five to 200 lives. Funded through a Lincoln National Life Insurance Company (“LNL”) group variable annuity contract, LINCOLN DIRECTORSM offers participants 60 investment options from 15 fund families. In New York, Lincoln Life & Annuity Company of New York (“LLANY”) underwrites the annuity contracts, and these contracts offer 57 investment options from 16 fund families. LINCOLN DIRECTORSM has the option of being serviced through a third-party administrator or fully serviced by Lincoln. The Employer Markets Defined Contribution segment earns advisory fees, investment income, surrender charges and recordkeeping fees from this product. Account values for LINCOLN DIRECTORSM were $7.7 billion, $7.5 billion and $6.5 billion as of December 31, 2007, 2006 and 2005, respectively. Deposits for LINCOLN DIRECTORSM were $1.5 billion, $1.7 billion and $1.6 billion as of December 31, 2007, 2006 and 2005, respectively. The LINCOLN ALLIANCE? program, with an open architecture platform, bundles our traditional fixed annuity products with the employer’s choice of retail mutual funds, along with recordkeeping and customized employee education components. We earn fees for the services we provide to mutual fund accounts and investment margins on fixed annuities of LINCOLN ALLIANCE? program accounts. The retail mutual funds associated with this program are not included in the separate accounts reported on our Consolidated Balance Sheets. This program is customized for each employer. The target market is primarily education and |
-0.07627 | In the year with lowest amount of Interest in table 2, what's the increasing rate of Operating leases in table 2? | Long-term product offerings include alpha-seeking active and index strategies. Our alpha-seeking active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile, and leverage fundamental research and quantitative models to drive portfolio construction. In contrast, index strategies seek to closely track the returns of a corresponding index, generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index. Index strategies include both our non-ETF index products and iShares ETFs. Although many clients use both alpha-seeking active and index strategies, the application of these strategies may differ. For example, clients may use index products to gain exposure to a market or asset class, or may use a combination of index strategies to target active returns. In addition, institutional non-ETF index assignments tend to be very large (multi-billion dollars) and typically reflect low fee rates. Net flows in institutional index products generally have a small impact on BlackRock’s revenues and earnings. Equity Year-end 2017 equity AUM totaled $3.372 trillion, reflecting net inflows of $130.1 billion. Net inflows included $174.4 billion into iShares ETFs, driven by net inflows into Core funds and broad developed and emerging market equities, partially offset by non-ETF index and active net outflows of $25.7 billion and $18.5 billion, respectively. BlackRock’s effective fee rates fluctuate due to changes in AUM mix. Approximately half of BlackRock’s equity AUM is tied to international markets, including emerging markets, which tend to have higher fee rates than U. S. equity strategies. Accordingly, fluctuations in international equity markets, which may not consistently move in tandem with U. S. markets, have a greater impact on BlackRock’s equity revenues and effective fee rate. Fixed Income Fixed income AUM ended 2017 at $1.855 trillion, reflecting net inflows of $178.8 billion. In 2017, active net inflows of $21.5 billion were diversified across fixed income offerings, and included strong inflows into municipal, unconstrained and total return bond funds. iShares ETFs net inflows of $67.5 billion were led by flows into Core, corporate and treasury bond funds. Non-ETF index net inflows of $89.8 billion were driven by demand for liability-driven investment solutions. Multi-Asset BlackRock’s multi-asset team manages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities, bonds, currencies and commodities, and our extensive risk management capabilities. Investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays. Component changes in multi-asset AUM for 2017 are presented below.
<table><tr><td>(in millions)</td><td>December 31,2016</td><td>Net inflows (outflows)</td><td>Marketchange</td><td>FXimpact</td><td>December 31,2017</td></tr><tr><td>Asset allocation and balanced</td><td>$176,675</td><td>$-2,502</td><td>$17,387</td><td>$4,985</td><td>$196,545</td></tr><tr><td>Target date/risk</td><td>149,432</td><td>23,925</td><td>24,532</td><td>1,577</td><td>199,466</td></tr><tr><td>Fiduciary</td><td>68,395</td><td>-1,047</td><td>7,522</td><td>8,819</td><td>83,689</td></tr><tr><td>FutureAdvisor<sup>-1</sup></td><td>505</td><td>-46</td><td>119</td><td>—</td><td>578</td></tr><tr><td>Total</td><td>$395,007</td><td>$20,330</td><td>$49,560</td><td>$15,381</td><td>$480,278</td></tr></table>
(1) FutureAdvisor amounts do not include AUM held in iShares ETFs. Multi-asset net inflows reflected ongoing institutional demand for our solutions-based advice with $18.9 billion of net inflows coming from institutional clients. Defined contribution plans of institutional clients remained a significant driver of flows, and contributed $20.8 billion to institutional multi-asset net inflows in 2017, primarily into target date and target risk product offerings. Retail net inflows of $1.1 billion reflected demand for our Multi-Asset Income fund family, which raised $5.8 billion in 2017. The Company’s multi-asset strategies include the following: ? Asset allocation and balanced products represented 41% of multi-asset AUM at year-end. These strategies combine equity, fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget. In certain cases, these strategies seek to minimize downside risk through diversification, derivatives strategies and tactical asset allocation decisions. Flagship products in this category include our Global Allocation and Multi-Asset Income fund families. ? Target date and target risk products grew 16% organically in 2017, with net inflows of $23.9 billion. Institutional investors represented 93% of target date and target risk AUM, with defined contribution plans accounting for 87% of AUM. Flows were driven by defined contribution investments in our LifePath offerings. LifePath products utilize a proprietary active asset allocation overlay model that seeks to balance risk and return over an investment horizon based on the investor’s expected retirement timing. Underlying investments are primarily index products. ? Fiduciary management services are complex mandates in which pension plan sponsors or endowments and foundations retain BlackRock to assume responsibility for some or all aspects of investment management. These customized services require strong partnership with the clients’ investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives. not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2017. The 2017 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities. At December 31, 2017, the Company had no amount outstanding under the 2017 credit facility Commercial Paper Program. The Company can issue unsecured commercial paper notes (the “CP Notes”) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion. The commercial paper program is currently supported by the 2017 credit facility. At December 31, 2017, BlackRock had no CP Notes outstanding Long-Term Borrowings The carrying value of long-term borrowings at December 31, 2017 included the following:
<table><tr><td>(in millions)</td><td>Maturity Amount</td><td>Carrying Value</td><td>Maturity</td></tr><tr><td>5.00% Notes</td><td>$1,000</td><td>$999</td><td>December 2019</td></tr><tr><td>4.25% Notes</td><td>750</td><td>747</td><td>May 2021</td></tr><tr><td>3.375% Notes</td><td>750</td><td>746</td><td>June 2022</td></tr><tr><td>3.50% Notes</td><td>1,000</td><td>994</td><td>March 2024</td></tr><tr><td>1.25% Notes<sup>-1</sup></td><td>841</td><td>835</td><td>May 2025</td></tr><tr><td>3.20% Notes</td><td>700</td><td>693</td><td>March 2027</td></tr><tr><td>Total Long-term Borrowings</td><td>$5,041</td><td>$5,014</td><td></td></tr></table>
(1) The carrying value of the 1.25% Notes estimated using foreign exchange rate as of December 31, 2017. For more information on Company’s borrowings, see Note 12, Borrowings, in the notes to the consolidated financial statements contained in Part II, Item 8 of this filing. Contractual Obligations, Commitments and Contingencies The following table sets forth contractual obligations, commitments and contingencies by year of payment at December 31, 2017:
<table><tr><td>(in millions)</td><td>2018</td><td>2019</td><td>2020</td><td>2021</td><td>2022</td><td>Thereafter<sup>-1</sup></td><td>Total</td></tr><tr><td>Contractual obligations and commitments<sup>-1</sup>:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Long-term borrowings<sup>-2</sup>:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Principal</td><td>$—</td><td>$1,000</td><td>$—</td><td>$750</td><td>$750</td><td>$2,541</td><td>$5,041</td></tr><tr><td>Interest</td><td>175</td><td>175</td><td>125</td><td>109</td><td>81</td><td>185</td><td>850</td></tr><tr><td>Operating leases</td><td>141</td><td>132</td><td>126</td><td>118</td><td>109</td><td>1,580</td><td>2,206</td></tr><tr><td>Purchase obligations</td><td>128</td><td>101</td><td>29</td><td>22</td><td>19</td><td>28</td><td>327</td></tr><tr><td>Investment commitments</td><td>298</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>298</td></tr><tr><td>Total contractual obligations and commitments</td><td>742</td><td>1,408</td><td>280</td><td>999</td><td>959</td><td>4,334</td><td>8,722</td></tr><tr><td>Contingent obligations:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Contingent payments related to business acquisitions<sup>-3</sup></td><td>33</td><td>179</td><td>39</td><td>34</td><td>—</td><td>—</td><td>285</td></tr><tr><td>Total contractual obligations, commitments andcontingent obligations<sup>-4</sup></td><td>$775</td><td>$1,587</td><td>$319</td><td>$1,033</td><td>$959</td><td>$4,334</td><td>$9,007</td></tr></table>
(1) Amounts do not include $350 million of cash payment consideration and contingent consideration related to the Company’s agreement to acquire the asset management business of Citibanamex. (2) The amount of principal and interest payments for the 2025 Notes (issued in Euros) represents the expected payment amounts using foreign exchange rates as of December 31, 2017. (3) The amount of contingent payments reflected for any year represents the expected payments using foreign currency exchange rates as of December 31, 2017. The fair value of the remaining aggregate contingent payments at December 31, 2017 totaled $236 million and is included in other liabilities on the consolidated statements of financial condition. (4) At December 31, 2017, the Company had approximately $365 million of net unrecognized tax benefits. Due to the uncertainty of timing and amounts that will ultimately be paid, this amount has been excluded from the table above. Operating Leases. The Company leases its primary office locations under agreements that expire on varying dates through 2043. In connection with certain lease agreements, the Company is responsible for escalation payments. The contractual obligations table above includes only guaranteed minimum lease payments for such leases and does not project potential escalation or other lease-related payments. These leases are classified as operating leases and, as such, are not recorded as liabilities on the consolidated statements of financial condition. In May 2017, the Company entered into an agreement with 50 HYMC Owner LLC, for the lease of approximately 847,000 square feet of office space located at 50 Hudson Yards, New York, New York. The term of the lease is twenty years from the date that rental payments begin, expected to occur in McKESSON CORPORATION FINANCIAL REVIEW (Continued) 46 In July 2008, the Board authorized the retirement of shares of the Company’s common stock that may be repurchased from time-to-time pursuant to its stock repurchase program. During the second quarter of 2009, all of the 4 million repurchased shares, which we purchased for $204 million, were formally retired by the Company. The retired shares constitute authorized but unissued shares. We elected to allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings. As such, $165 million was recorded as a decrease to retained earnings. The Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Company’s future earnings, financial condition, capital requirements and other factors. Although we believe that our operating cash flow, financial assets, current access to capital and credit markets, including our existing credit and sales facilities, will give us the ability to meet our financing needs for the foreseeable future, there can be no assurance that continued or increased volatility and disruption in the global capital and credit markets will not impair our liquidity or increase our costs of borrowing. Selected Measures of Liquidity and Capital Resources: |
2,008 | Which year is Total writedowns in terms of Fixed Maturity Securities the lowest? | Gross other postretirement benefit payments for the next ten years, which reflect expected future service where appropriate, and gross subsidies to be received under the Prescription Drug Act are expected to be as follows:
<table><tr><td></td><td> Gross</td><td> Prescription Drug Subsidies (In millions)</td><td> Net</td></tr><tr><td>2009</td><td>$135</td><td>$-15</td><td>$120</td></tr><tr><td>2010</td><td>$140</td><td>$-16</td><td>$124</td></tr><tr><td>2011</td><td>$146</td><td>$-16</td><td>$130</td></tr><tr><td>2012</td><td>$150</td><td>$-17</td><td>$133</td></tr><tr><td>2013</td><td>$154</td><td>$-18</td><td>$136</td></tr><tr><td>2014-2018</td><td>$847</td><td>$-107</td><td>$740</td></tr></table>
Insolvency Assessments Most of the jurisdictions in which the Company is admitted to transact business require insurers doing business within the jurisdiction to participate in guaranty associations, which are organized to pay contractual benefits owed pursuant to insurance policies issued by impaired, insolvent or failed insurers. These associations levy assessments, up to prescribed limits, on all member insurers in a particular state on the basis of the proportionate share of the premiums written by member insurers in the lines of business in which the impaired, insolvent or failed insurer engaged. Some states permit member insurers to recover assessments paid through full or partial premium tax offsets. Assets and liabilities held for insolvency assessments are as follows:
<table><tr><td></td><td colspan="2"> December 31,</td></tr><tr><td></td><td> 2008</td><td> 2007</td></tr><tr><td></td><td colspan="2"> (In millions)</td></tr><tr><td>Other Assets:</td><td></td><td></td></tr><tr><td>Premium tax offset for future undiscounted assessments</td><td>$50</td><td>$40</td></tr><tr><td>Premium tax offsets currently available for paid assessments</td><td>7</td><td>6</td></tr><tr><td>Receivable for reimbursement of paid assessments -1</td><td>7</td><td>7</td></tr><tr><td></td><td>$64</td><td>$53</td></tr><tr><td>Other Liabilities:</td><td></td><td></td></tr><tr><td>Insolvency assessments</td><td>$83</td><td>$74</td></tr></table>
(1) The Company holds a receivable from the seller of a prior acquisition in accordance with the purchase agreement. Assessments levied against the Company were $2 million, ($1) million and $2 million for the years ended December 31, 2008, 2007 and 2006, respectively. Effects of Inflation The Company does not believe that inflation has had a material effect on its consolidated results of operations, except insofar as inflation may affect interest rates. Inflation in the United States has remained contained and been in a general downtrend for an extended period. However, in light of recent and ongoing aggressive fiscal and monetary stimulus measures by the U. S. federal government and foreign governments, it is possible that inflation could increase in the future. An increase in inflation could affect our business in several ways. During inflationary periods, the value of fixed income investments falls which could increase realized and unrealized losses. Inflation also increases expenses for labor and other materials, potentially putting pressure on profitability if such costs can not be passed through in our product prices. Inflation could also lead to increased costs for losses and loss adjustment expenses in our Auto & Home business, which could require us to adjust our pricing to reflect our expectations for future inflation. If actual inflation exceeds the expectations we use in pricing our policies, the profitability of our Auto & Home business would be adversely affected. Prolonged and elevated inflation could adversely affect the financial markets and the economy generally, and dispelling it may require governments to pursue a restrictive fiscal and monetary policy, which could constrain overall economic activity, inhibit revenue growth and reduce the number of attractive investment opportunities. Adoption of New Accounting Pronouncements Fair Value Effective January 1, 2008, the Company adopted SFAS No.157, Fair Value Measurements. SFAS 157 which defines fair value, establishes a consistent framework for measuring fair value, establishes a fair value hierarchy based on the observability of inputs used to measure fair value, and requires enhanced disclosures about fair value measurements and applied the provisions of the statement prospectively to assets and liabilities measured at fair value. The adoption of SFAS 157 changed the valuation of certain freestanding derivatives by moving from a mid to bid pricing convention as it relates to certain volatility inputs as well as the addition of liquidity adjustments and adjustments for risks inherent in a particular input or valuation technique. The adoption of SFAS 157 also changed the valuation of the Company’s embedded derivatives, most significantly the valuation of embedded derivatives associated with certain riders on variable annuity contracts. The change in valuation of embedded derivatives associated with riders on annuity contracts resulted from the incorporation of risk margins associated with non capital market inputs and the inclusion of the Company’s own credit standing in their valuation. At January 1, 2008, the impact of adopting SFAS 157 on assets and liabilities measured at estimated fair value was $30 million ($19 million, net of income tax) and was recognized as a change in estimate in the accompanying consolidated statement of income where it was presented in the respective income statement caption to which the item measured at estimated fair value is presented. There were no significant changes in estimated fair value of items measured at fair value and reflected in accumulated other comprehensive income (loss). The addition of risk margins and the Company’s own credit spread in the valuation of embedded derivatives associated with annuity contracts may result in significant volatility in the Company’s consolidated net income in future periods. Note 24 of the Notes to the At December 31, 2008 and 2007, the Company’s gross unrealized losses related to its fixed maturity and equity securities of $29.8 billion and $4.7 billion, respectively, were concentrated, calculated as a percentage of gross unrealized loss, as follows:
<table><tr><td></td><td colspan="2"> December 31,</td></tr><tr><td></td><td>2008</td><td> 2007</td></tr><tr><td> Sector:</td><td></td><td></td></tr><tr><td>U.S. corporate securities</td><td>33%</td><td>44%</td></tr><tr><td>Foreign corporate securities</td><td>19</td><td>16</td></tr><tr><td>Residential mortgage-backed securities</td><td>16</td><td>8</td></tr><tr><td>Asset-backed securities</td><td>13</td><td>11</td></tr><tr><td>Commercial mortgage-backed securities</td><td>11</td><td>4</td></tr><tr><td>State and political subdivision securities</td><td>3</td><td>2</td></tr><tr><td>Foreign government securities</td><td>1</td><td>4</td></tr><tr><td>Other</td><td>4</td><td>11</td></tr><tr><td>Total</td><td>100%</td><td>100%</td></tr><tr><td> Industry:</td><td></td><td></td></tr><tr><td>Mortgage-backed</td><td>27%</td><td>12%</td></tr><tr><td>Finance</td><td>24</td><td>33</td></tr><tr><td>Asset-backed</td><td>13</td><td>11</td></tr><tr><td>Consumer</td><td>11</td><td>3</td></tr><tr><td>Utility</td><td>8</td><td>8</td></tr><tr><td>Communication</td><td>5</td><td>2</td></tr><tr><td>Industrial</td><td>4</td><td>19</td></tr><tr><td>Foreign government</td><td>1</td><td>4</td></tr><tr><td>Other</td><td>7</td><td>8</td></tr><tr><td>Total</td><td>100%</td><td>100%</td></tr></table>
Writedowns. The components of fixed maturity and equity securities net investment gains (losses) are as follows:
<table><tr><td></td><td colspan="3">Fixed Maturity Securities</td><td colspan="3">Equity Securities</td><td colspan="3">Total</td></tr><tr><td></td><td>2008</td><td>2007</td><td>2006</td><td>2008</td><td>2007</td><td>2006</td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td></td><td colspan="9">(In millions)</td></tr><tr><td>Proceeds</td><td>$62,495</td><td>$78,001</td><td>$86,725</td><td>$2,107</td><td>$1,112</td><td>$845</td><td>$64,602</td><td>$79,113</td><td>$87,570</td></tr><tr><td>Gross investment gains</td><td>858</td><td>554</td><td>421</td><td>436</td><td>226</td><td>130</td><td>1,294</td><td>780</td><td>551</td></tr><tr><td>Gross investment losses</td><td>-1,511</td><td>-1,091</td><td>-1,484</td><td>-263</td><td>-43</td><td>-22</td><td>-1,774</td><td>-1,134</td><td>-1,506</td></tr><tr><td>Writedowns</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit-related</td><td>-1,138</td><td>-58</td><td>-56</td><td>-90</td><td>-19</td><td>-24</td><td>-1,228</td><td>-77</td><td>-80</td></tr><tr><td>Other than credit-related -1</td><td>-158</td><td>-20</td><td>—</td><td>-340</td><td>—</td><td>—</td><td>-498</td><td>-20</td><td>—</td></tr><tr><td>Total writedowns</td><td>-1,296</td><td>-78</td><td>-56</td><td>-430</td><td>-19</td><td>-24</td><td>-1,726</td><td>-97</td><td>-80</td></tr><tr><td>Net investment gains (losses)</td><td>$-1,949</td><td>$-615</td><td>$-1,119</td><td>$-257</td><td>$164</td><td>$84</td><td>$-2,206</td><td>$-451</td><td>$-1,035</td></tr></table>
(1) Other than credit-related writedowns include items such as equity securities where the primary reason for the writedown was the severity and/or the duration of an unrealized loss position and fixed maturity securities where an interest-rate related writedown was taken. Overview of Fixed Maturity and Equity Security Writedowns. Writedowns of fixed maturity and equity securities were $1.7 billion, $97 million and $80 million for the years ended December 31, 2008, 2007 and 2006, respectively. Writedowns of fixed maturity securities were $1.3 billion, $78 million and $56 million for the years ended December 31, 2008, 2007 and 2006, respectively. Writedowns of equity securities were $430 million, $19 million and $24 million for the years ended December 31, 2008, 2007 and 2006, respectively. The Company’s credit-related writedowns of fixed maturity and equity securities were $1.2 billion, $77 million and $80 million for the years ended December 31, 2008, 2007 and 2006, respectively. The Company’s credit-related writedowns of fixed maturity securities were $1.1 billion, $58 million and $56 million for the years ended December 31, 2008, 2007 and 2006, respectively. The Company’s creditrelated writedowns of equity securities were $90 million, $19 million and $24 million for the years ended December 31, 2008, 2007 and 2006, respectively. The $90 million of credit-related equity securities writedowns in 2008 were primarily on non-redeemable preferred securities. The Company’s three largest impairments totaled $528 million, $19 million and $33 million for the years ended December 31, 2008, 2007 and 2006, respectively. The Company records impairments as investment losses and adjusts the cost basis of the fixed maturity and equity securities accordingly. The Company does not change the revised cost basis for subsequent recoveries in value. Failure to comply with the financial and other covenants under our Credit Facilities, as well as the occurrence of certain material adverse events, would constitute defaults and would allow the lenders under our Credit Facilities to accelerate the maturity of all indebtedness under the related agreements. This could also have an adverse impact on the availability of financial assurances. In addition, maturity acceleration on our Credit Facilities constitutes an event of default under our other debt instruments, including our senior notes, and, therefore, our senior notes would also be subject to acceleration of maturity. If such acceleration were to occur, we would not have sufficient liquidity available to repay the indebtedness. We would likely have to seek an amendment under our Credit Facilities for relief from the financial covenants or repay the debt with proceeds from the issuance of new debt or equity, or asset sales, if necessary. We may be unable to amend our Credit Facilities or raise sufficient capital to repay such obligations in the event the maturities are accelerated. Financial assurance We are required to provide financial assurance to governmental agencies and a variety of other entities under applicable environmental regulations relating to our landfill operations for capping, closure and post-closure costs, and related to our performance under certain collection, landfill and transfer station contracts. We satisfy these financial assurance requirements by providing surety bonds, letters of credit, insurance policies or trust deposits. The amount of the financial assurance requirements for capping, closure and post-closure costs is determined by applicable state environmental regulations. The financial assurance requirements for capping, closure and post-closure costs may be associated with a portion of the landfill or the entire landfill. Generally, states will require a third-party engineering specialist to determine the estimated capping, closure and postclosure costs that are used to determine the required amount of financial assurance for a landfill. The amount of financial assurance required can, and generally will, differ from the obligation determined and recorded under U. S. GAAP. The amount of the financial assurance requirements related to contract performance varies by contract. Additionally, we are required to provide financial assurance for our insurance program and collateral for certain performance obligations. We do not expect a material increase in financial assurance requirements during 2010, although the mix of financial assurance instruments may change. These financial instruments are issued in the normal course of business and are not debt of our company. Since we currently have no liability for these financial assurance instruments, they are not reflected in our consolidated balance sheets. However, we record capping, closure and post-closure liabilities and self-insurance liabilities as they are incurred. The underlying obligations of the financial assurance instruments, in excess of those already reflected in our consolidated balance sheets, would be recorded if it is probable that we would be unable to fulfill our related obligations. We do not expect this to occur. Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than financial assurance instruments and operating leases that are not classified as debt. We do not guarantee any third-party debt. Free Cash Flow We define free cash flow, which is not a measure determined in accordance with U. S. GAAP, as cash provided by operating activities less purchases of property and equipment, plus proceeds from sales of property and equipment as presented in our consolidated statements of cash flows. Our free cash flow for the years ended December 31, 2009, 2008 and 2007 is calculated as follows (in millions): |
2,005 | Which year is Fair Value for Aaa the highest? | MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) Issuance Costs In connection with the offering of common equity units, the Holding Company incurred $55.3 million of issuance costs of which $5.8 million related to the issuance of the junior subordinated debentures underlying common equity units which funded the Series A and Series B trust preferred securities and $49.5 million related to the expected issuance of the common stock under the stock purchase contracts. The $5.8 million in debt issuance costs were capitalized, included in other assets, and amortized using the effective interest method over the period from issuance date of the common equity units to the initial and subsequent stock purchase date. The remaining $49.5 million of costs related to the common stock issuance under the stock purchase contracts and were recorded as a reduction of additional paid-in capital. Earnings Per Common Share The stock purchase contracts are reflected in diluted earnings per common share using the treasury stock method. The stock purchase contracts were included in diluted earnings per common share for the years ended December 31, 2008, 2007 and 2006 as shown in Note 20. Remarketing of Junior Subordinated Debentures and Settlement of Stock Purchase Contracts On August 15, 2008, the Holding Company closed the successful remarketing of the Series A portion of the junior subordinated debentures underlying the common equity units. The Series A junior subordinated debentures were modified as permitted by their terms to be 6.817% senior debt securities Series A, due August 15, 2018. The Holding Company did not receive any proceeds from the remarketing. Most common equity unit holders chose to have their junior subordinated debentures remarketed and used the remarketing proceeds to settle their payment obligations under the applicable stock purchase contract. For those common equity unit holders that elected not to participate in the remarketing and elected to use their own cash to satisfy the payment obligations under the stock purchase contract, the terms of the debt are the same as the remarketed debt. The initial settlement of the stock purchase contracts occurred on August 15, 2008, providing proceeds to the Holding Company of $1,035 million in exchange for shares of the Holding Company’s common stock. The Holding Company delivered 20,244,549 shares of its common stock held in treasury at a value of $1,064 million to settle the stock purchase contracts. On February 17, 2009, the Holding Company closed the successful remarketing of the Series B portion of the junior subordinated debentures underlying the common equity units. The Series B junior subordinated debentures were modified as permitted by their terms to be 7.717% senior debt securities Series B, due February 15, 2019. The Holding Company did not receive any proceeds from the remarketing. Most common equity unit holders chose to have their junior subordinated debentures remarketed and used the remarketing proceeds to settle their payment obligations under the applicable stock purchase contract. For those common equity unit holders that elected not to participate in the remarketing and elected to use their own cash to satisfy the payment obligations under the stock purchase contract, the terms of the debt are the same as the remarketed debt. The subsequent settlement of the stock purchase contracts occurred on February 17, 2009, providing proceeds to the Holding Company of $1,035 million in exchange for shares of the Holding Company’s common stock. The Holding Company delivered 24,343,154 shares of its newly issued common stock at a value of $1,035 million to settle the stock purchase contracts. See also Notes 10, 12, 18 and 25.14. Shares Subject to Mandatory Redemption and Company-Obligated Mandatorily Redeemable Securities of Subsidiary Trusts GenAmerica Capital I. In June 1997, GenAmerica Corporation (“GenAmerica”) issued $125 million of 8.525% capital securities through a wholly-owned subsidiary trust, GenAmerica Capital I. In October 2007, GenAmerica redeemed these securities which were due to mature on June 30, 2027. As a result of this redemption, the Company recognized additional interest expense of $10 million. Interest expense on these instruments is included in other expenses and was $20 million and $11 million for the years ended December 31, 2007 and 2006, respectively.15. Income Tax The provision for income tax from continuing operations is as follows:
<table><tr><td></td><td colspan="3"> Years Ended December 31,</td></tr><tr><td></td><td>2008</td><td>2007</td><td> 2006</td></tr><tr><td></td><td colspan="3"> (In millions)</td></tr><tr><td>Current:</td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>$216</td><td>$424</td><td>$615</td></tr><tr><td>State and local</td><td>10</td><td>15</td><td>39</td></tr><tr><td>Foreign</td><td>372</td><td>200</td><td>144</td></tr><tr><td>Subtotal</td><td>598</td><td>639</td><td>798</td></tr><tr><td>Deferred:</td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>1,078</td><td>1,015</td><td>164</td></tr><tr><td>State and local</td><td>-6</td><td>31</td><td>2</td></tr><tr><td>Foreign</td><td>-90</td><td>-25</td><td>52</td></tr><tr><td>Subtotal</td><td>982</td><td>1,021</td><td>218</td></tr><tr><td>Provision for income tax</td><td>$1,580</td><td>$1,660</td><td>$1,016</td></tr></table>
the same default methodology to all Alt-A bonds, regardless of the underlying collateral. The Company’s Alt-A portfolio has superior structure to the overall Alt-A market. The Company’s Alt-A portfolio is 88% fixed rate collateral, has zero exposure to option ARM mortgages and has only 12% hybrid ARMs. Fixed rate mortgages have performed better than both option ARMs and hybrid ARMs. Additionally, 83% of the Company’s Alt-A portfolio has super senior credit enhancement, which typically provides double the credit enhancement of a standard AAA rated bond. Based upon the analysis of the Company’s exposure to Alt-A mortgage loans through its investment in asset-backed securities, the Company continues to expect to receive payments in accordance with the contractual terms of the securities. Asset-Backed Securities. The Company’s asset-backed securities are diversified both by sector and by issuer. At December 31, 2008, the largest exposures in the Company’s asset-backed securities portfolio were credit card receivables, automobile receivables, student loan receivables and residential mortgage-backed securities backed by sub-prime mortgage loans of 49%, 10%, 10% and 10% of the total holdings, respectively. At December 31, 2008 and 2007, the Company’s holdings in asset-backed securities was $10.5 billion and $10.6 billion at estimated fair value. At December 31, 2008 and 2007, $7.9 billion and $5.7 billion, respectively, or 75% and 54%, respectively, of total asset-backed securities were rated Aaa/AAA by Moody’s, S&P or Fitch. The Company’s asset-backed securities included in the structured securities table above include exposure to residential mortgagebacked securities backed by sub-prime mortgage loans. Sub-prime mortgage lending is the origination of residential mortgage loans to customers with weak credit profiles. The Company’s exposure exists through investment in asset-backed securities which are supported by sub-prime mortgage loans. The slowing U. S. housing market, greater use of affordable mortgage products, and relaxed underwriting standards for some originators of below-prime loans have recently led to higher delinquency and loss rates, especially within the 2006 and 2007 vintage year. Vintage year refers to the year of origination and not to the year of purchase. These factors have caused a pull-back in market liquidity and repricing of risk, which has led to an increase in unrealized losses from December 31, 2007 to December 31, 2008. Based upon the analysis of the Company’s exposure to sub-prime mortgage loans through its investment in asset-backed securities, the Company expects to receive payments in accordance with the contractual terms of the securities. The following table shows the Company’s exposure to asset-backed securities supported by sub-prime mortgage loans by credit quality and by vintage year:
<table><tr><td></td><td colspan="12"> December 31, 2008</td></tr><tr><td></td><td colspan="2"> Aaa</td><td colspan="2"> Aa</td><td colspan="2"> A</td><td colspan="2"> Baa</td><td colspan="2"> Below Investment Grade</td><td colspan="2"> Total</td></tr><tr><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td></tr><tr><td></td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td></tr><tr><td></td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td></tr><tr><td></td><td colspan="12"> (In millions)</td></tr><tr><td>2003 & Prior</td><td>$96</td><td>$77</td><td>$92</td><td>$72</td><td>$26</td><td>$16</td><td>$83</td><td>$53</td><td>$8</td><td>$4</td><td>$305</td><td>$222</td></tr><tr><td>2004</td><td>129</td><td>70</td><td>372</td><td>204</td><td>5</td><td>3</td><td>37</td><td>28</td><td>2</td><td>1</td><td>545</td><td>306</td></tr><tr><td>2005</td><td>357</td><td>227</td><td>186</td><td>114</td><td>20</td><td>11</td><td>79</td><td>46</td><td>4</td><td>4</td><td>646</td><td>402</td></tr><tr><td>2006</td><td>146</td><td>106</td><td>69</td><td>30</td><td>15</td><td>10</td><td>26</td><td>7</td><td>2</td><td>2</td><td>258</td><td>155</td></tr><tr><td>2007</td><td>—</td><td>—</td><td>78</td><td>33</td><td>35</td><td>21</td><td>2</td><td>2</td><td>3</td><td>1</td><td>118</td><td>57</td></tr><tr><td>2008</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>$728</td><td>$480</td><td>$797</td><td>$453</td><td>$101</td><td>$61</td><td>$227</td><td>$136</td><td>$19</td><td>$12</td><td>$1,872</td><td>$1,142</td></tr></table>
December 31, 2007
<table><tr><td></td><td colspan="12"> December 31, 2007</td></tr><tr><td></td><td colspan="2"> Aaa</td><td colspan="2"> Aa</td><td colspan="2"> A</td><td colspan="2"> Baa</td><td colspan="2"> Below Investment Grade</td><td colspan="2"> Total</td></tr><tr><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td></tr><tr><td></td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td></tr><tr><td></td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td></tr><tr><td></td><td colspan="12"> (In millions)</td></tr><tr><td>2003 & Prior</td><td>$217</td><td>$206</td><td>$130</td><td>$123</td><td>$15</td><td>$14</td><td>$13</td><td>$12</td><td>$4</td><td>$2</td><td>$379</td><td>$357</td></tr><tr><td>2004</td><td>186</td><td>169</td><td>412</td><td>383</td><td>11</td><td>9</td><td>—</td><td>—</td><td>1</td><td>—</td><td>610</td><td>561</td></tr><tr><td>2005</td><td>509</td><td>462</td><td>218</td><td>197</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>727</td><td>659</td></tr><tr><td>2006</td><td>244</td><td>223</td><td>64</td><td>43</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>308</td><td>266</td></tr><tr><td>2007</td><td>132</td><td>123</td><td>17</td><td>9</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>149</td><td>132</td></tr><tr><td>Total</td><td>$1,288</td><td>$1,183</td><td>$841</td><td>$755</td><td>$26</td><td>$23</td><td>$13</td><td>$12</td><td>$5</td><td>$2</td><td>$2,173</td><td>$1,975</td></tr></table>
At December 31, 2008 and 2007, the Company had asset-backed securities supported by sub-prime mortgage loans with estimated fair values of $1.1 billion and $2.0 billion, respectively, and unrealized losses of $730 million and $198 million, respectively, as outlined in the tables above. At December 31, 2008, approximately 82% of the portfolio is rated Aa or better of which 82% was in vintage year 2005 and prior. At December 31, 2007, approximately 98% of the portfolio was rated Aa or better of which 79% was in vintage year 2005 and prior. These older vintages benefit from better underwriting, improved enhancement levels and higher residential property price appreciation. At December 31, 2008, 37% of the asset-backed securities backed by sub-prime mortgage loans have been guaranteed by financial guarantee insurers, of which 19% and 37% were guaranteed by financial guarantee insurers who were Aa and Baa rated, respectively. At December 31, 2008, all of the $1.1 billion of asset-backed securities supported by sub-prime mortgage loans were classified as Level 3 securities. have access to liquidity by issuing bonds to public or private investors based on our assessment of the current condition of the credit markets. At December 31, 2009, we had a working capital surplus of approximately $1.0 billion, which reflects our decision to maintain additional cash reserves to enhance liquidity in response to difficult economic conditions. At December 31, 2008, we had a working capital deficit of approximately $100 million. Historically, we have had a working capital deficit, which is common in our industry and does not indicate a lack of liquidity. We maintain adequate resources and, when necessary, have access to capital to meet any daily and short-term cash requirements, and we have sufficient financial capacity to satisfy our current liabilities.
<table><tr><td><i>Millions of Dollars</i></td><td><i>2009</i></td><td>2008</td><td>2007</td></tr><tr><td>Cash provided by operating activities</td><td>$3,234</td><td>$4,070</td><td>$3,277</td></tr><tr><td>Cash used in investing activities</td><td>-2,175</td><td>-2,764</td><td>-2,426</td></tr><tr><td>Cash used in financing activities</td><td>-458</td><td>-935</td><td>-800</td></tr><tr><td>Net change in cash and cash equivalents</td><td>$601</td><td>$371</td><td>$51</td></tr></table>
Operating Activities Lower net income in 2009, a reduction of $184 million in the outstanding balance of our accounts receivable securitization program, higher pension contributions of $72 million, and changes to working capital combined to decrease cash provided by operating activities compared to 2008. Higher net income and changes in working capital combined to increase cash provided by operating activities in 2008 compared to 2007. In addition, accelerated tax deductions enacted in 2008 on certain new operating assets resulted in lower income tax payments in 2008 versus 2007. Voluntary pension contributions in 2008 totaling $200 million and other pension contributions of $8 million partially offset the year-over-year increase versus 2007. Investing Activities Lower capital investments and higher proceeds from asset sales drove the decrease in cash used in investing activities in 2009 versus 2008. Increased capital investments and lower proceeds from asset sales drove the increase in cash used in investing activities in 2008 compared to 2007. |
1.77865 | What is the growing rate of Canada-1 in the year with the most Total calendar year effect ? | Table of Contents Earnings Per Share Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, shares to be purchased under the Company’s employee stock purchase plan and unvested RSUs. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s common stock can result in a greater dilutive effect from potentially dilutive securities. The following table shows the computation of basic and diluted earnings per share for 2013, 2012, and 2011 (in thousands, except net income in millions and per share amounts):
<table><tr><td></td><td> 2013</td><td> 2012</td><td> 2011</td></tr><tr><td>Numerator:</td><td></td><td></td><td></td></tr><tr><td>Net income</td><td>$37,037</td><td>$41,733</td><td>$25,922</td></tr><tr><td>Denominator:</td><td></td><td></td><td></td></tr><tr><td>Weighted-average shares outstanding</td><td>925,331</td><td>934,818</td><td>924,258</td></tr><tr><td>Effect of dilutive securities</td><td>6,331</td><td>10,537</td><td>12,387</td></tr><tr><td>Weighted-average diluted shares</td><td>931,662</td><td>945,355</td><td>936,645</td></tr><tr><td>Basic earnings per share</td><td>$40.03</td><td>$44.64</td><td>$28.05</td></tr><tr><td>Diluted earnings per share</td><td>$39.75</td><td>$44.15</td><td>$27.68</td></tr></table>
Potentially dilutive securities representing 4.2 million, 1.0 million and 1.7 million shares of common stock for 2013, 2012 and 2011, respectively, were excluded from the computation of diluted earnings per share for these periods because their effect would have been antidilutive. Financial Instruments Cash Equivalents and Marketable Securities All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company’s marketable debt and equity securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company classifies its marketable equity securities, including mutual funds, as either short-term or long-term based on the nature of each security and its availability for use in current operations. The Company’s marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders’ equity. The cost of securities sold is based upon the specific identification method. Derivative Financial Instruments The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (“AOCI”) in shareholders’ equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of the gain or We also record an inventory obsolescence reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends and requirements to support forecasted sales. In addition, and as necessary, we may establish specific reserves for future known or anticipated events. PENSION AND OTHER POST-RETIREMENT BENEFIT COSTS We offer the following benefits to some or all of our employees: a domestic trust-based noncontributory qualified defined benefit pension plan (“U. S. Qualified Plan”) and an unfunded, non-qualified domestic noncontributory pension plan to provide benefits in excess of statutory limitations (collectively with the U. S. Qualified Plan, the “Domestic Plans”); a domestic contributory defined contribution plan; international pension plans, which vary by country, consisting of both defined benefit and defined contribution pension plans; deferred compensation arrangements; and certain other postretirement benefit plans. The amounts needed to fund future payouts under our defined benefit pension and post-retirement benefit plans are subject to numerous assumptions and variables. Certain significant variables require us to make assumptions that are within our control such as an anticipated discount rate, expected rate of return on plan assets and future compensation levels. We evaluate these assumptions with our actuarial advisors and select assumptions that we believe reflect the economics underlying our pension and post-retirement obligations. While we believe these assumptions are within accepted industry ranges, an increase or decrease in the assumptions or economic events outside our control could have a direct impact on reported net earnings. The discount rate for each plan used for determining future net periodic benefit cost is based on a review of highly rated long-term bonds. For fiscal 2013, we used a discount rate for our Domestic Plans of 3.90% and varying rates on our international plans of between 1.00% and 7.00%. The discount rate for our Domestic Plans is based on a bond portfolio that includes only long-term bonds with an Aa rating, or equivalent, from a major rating agency. As of June 30, 2013, we used an above-mean yield curve, rather than the broad-based yield curve we used before, because we believe it represents a better estimate of an effective settlement rate of the obligation, and the timing and amount of cash flows related to the bonds included in this portfolio are expected to match the estimated defined benefit payment streams of our Domestic Plans. The benefit obligation of our Domestic Plans would have been higher by approximately $34 million at June 30, 2013 had we not used the above-mean yield curve. For our international plans, the discount rate in a particular country was principally determined based on a yield curve constructed from high quality corporate bonds in each country, with the resulting portfolio having a duration matching that particular plan. For fiscal 2013, we used an expected return on plan assets of 7.50% for our U. S. Qualified Plan and varying rates of between 2.25% and 7.00% for our international plans. In determining the long-term rate of return for a plan, we consider the historical rates of return, the nature of the plan’s investments and an expectation for the plan’s investment strategies. See “Note 12 — Pension, Deferred Compensation and Post-retirement Benefit Plans” of Notes to Consolidated Financial Statements for details regarding the nature of our pension and post-retirement plan investments. The difference between actual and expected return on plan assets is reported as a component of accumulated other comprehensive income. Those gains/losses that are subject to amortization over future periods will be recognized as a component of the net periodic benefit cost in such future periods. For fiscal 2013, our pension plans had actual return on assets of approximately $74 million as compared with expected return on assets of approximately $64 million. The resulting net deferred gain of approximately $10 million, when combined with gains and losses from previous years, will be amortized over periods ranging from approximately 7 to 22 years. The actual return on plan assets from our international pension plans exceeded expectations, primarily reflecting a strong performance from fixed income and equity investments. The lower than expected return on assets from our U. S. Qualified Plan was primarily due to weakness in our fixed income investments, partially offset by our strong equity returns. A 25 basis-point change in the discount rate or the expected rate of return on plan assets would have had the following effect on fiscal 2013 pension expense:
<table><tr><td>(In millions)</td><td>25 Basis-Point Increase</td><td>25 Basis-Point Decrease</td></tr><tr><td>Discount rate</td><td>$-3.5</td><td>$3.9</td></tr><tr><td>Expected return on assets</td><td>$-2.5</td><td>$2.7</td></tr></table>
Our post-retirement plans are comprised of health care plans that could be impacted by health care cost trend rates, which may have a significant effect on the amounts The following table is derived from the Ten Year GAAP Loss Development Table above and summarizes the effect of reserve re-estimates, net of reinsurance, on calendar year operations by accident year for the same ten year period ended December 31, 2013. Each column represents the amount of net reserve re-estimates made in the indicated calendar year and shows the accident years to which the re-estimates are applicable. The amounts in the total accident year column on the far right represent the cumulative reserve re-estimates for the indicated accident years. Since the Company has operations in many countries, part of the Company’s loss and LAE reserves are in foreign currencies and translated to U. S. dollars for each reporting period. Fluctuations in the exchange rates for the currencies, period over period, affect the U. S. dollar amount of outstanding reserves. The translation adjustment line at the bottom of the table eliminates the impact of the exchange fluctuations from the reserve re-estimates.
<table><tr><td>(Dollars in millions)</td><td>2004</td><td>2005</td><td>2006</td><td>2007</td><td>2008</td><td>2009</td><td>2010</td><td>2011</td><td>2012</td><td>2013</td><td>Cumulative Re-estimates for Each Accident Year</td></tr><tr><td>Accident Years</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>2003 and prior</td><td>$-312.0</td><td>$63.4</td><td>$-247.5</td><td>$-418.6</td><td>$-20.3</td><td>$-133.5</td><td>$-102.2</td><td>$-7.4</td><td>$-3.1</td><td>$-39.1</td><td>$-1,220.0</td></tr><tr><td>2004</td><td></td><td>69.9</td><td>140.7</td><td>99.2</td><td>83.5</td><td>-32.1</td><td>18.1</td><td>-3.2</td><td>-12.3</td><td>-12.5</td><td>351.1</td></tr><tr><td>2005</td><td></td><td></td><td>-137.6</td><td>130.1</td><td>56.3</td><td>-28.6</td><td>38.2</td><td>-12.1</td><td>17.4</td><td>-27.8</td><td>35.8</td></tr><tr><td>2006</td><td></td><td></td><td></td><td>-88.4</td><td>50.9</td><td>-18.3</td><td>42.8</td><td>-3.0</td><td>25.7</td><td>11.9</td><td>21.5</td></tr><tr><td>2007</td><td></td><td></td><td></td><td></td><td>41.5</td><td>17.6</td><td>43.6</td><td>-5.7</td><td>-1.8</td><td>22.3</td><td>117.6</td></tr><tr><td>2008</td><td></td><td></td><td></td><td></td><td></td><td>-52.5</td><td>38.6</td><td>-12.4</td><td>-7.7</td><td>37.0</td><td>3.0</td></tr><tr><td>2009</td><td></td><td></td><td></td><td></td><td></td><td></td><td>7.4</td><td>-0.8</td><td>-18.5</td><td>34.4</td><td>22.6</td></tr><tr><td>2010</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>47.1</td><td>-8.9</td><td>-32.1</td><td>6.1</td></tr><tr><td>2011</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>-10.2</td><td>19.6</td><td>9.3</td></tr><tr><td>2012</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td>26.9</td><td>26.9</td></tr><tr><td>Total calendar year effect</td><td>$-312.0</td><td>$133.3</td><td>$-244.4</td><td>$-277.8</td><td>$211.8</td><td>$-247.2</td><td>$86.5</td><td>$2.5</td><td>$-19.4</td><td>$40.5</td><td></td></tr><tr><td>Canada-1</td><td>-16.3</td><td>-6.6</td><td>-0.5</td><td>-49.6</td><td>63.7</td><td>-39.4</td><td>-21.2</td><td>9.7</td><td>-9.9</td><td>26.4</td><td></td></tr><tr><td>Translation adjustment</td><td>78.9</td><td>-100.3</td><td>109.3</td><td>120.9</td><td>-310.4</td><td>157.8</td><td>-34.5</td><td>-15.9</td><td>32.9</td><td>-48.6</td><td></td></tr><tr><td>Re-estimate of net reserve after translation adjustment</td><td>$-249.4</td><td>$26.4</td><td>$-135.6</td><td>$-206.5</td><td>$-34.9</td><td>$-128.8</td><td>$30.9</td><td>$-3.7</td><td>$3.7</td><td>$18.2</td><td></td></tr><tr><td colspan="4">-1 This adjustment converts Canadian dollars to U.S. dollars.</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td colspan="4">(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
The reserve development by accident year reflected in the above table was generally the result of the same factors described above that caused the deficiencies shown in the Ten Year GAAP Loss Development Table. The unfavorable development experienced in the 2003 and prior accident years relate principally to the previously discussed asbestos development. Other business areas contributing to adverse development were casualty reinsurance, including professional liability classes, and workers’ compensation insurance, where, in retrospect, the Company’s initial estimates of losses were underestimated principally as the result of unanticipated variability in the underlying exposures. The favorable development for accident year 2004 relates primarily to favorable experience with respect to property reinsurance business. In addition, casualty reinsurance has reflected favorable development for accident years 2004 to 2006. The Company’s loss reserving methodologies continuously monitor the emergence of loss and loss development trends, seeking, on a timely basis, to both adjust reserves for the impact of trend shifts and to factor the impact of such shifts into the Company’s underwriting and pricing on a prospective basis. |
0.27632 | what percentage of citi's home equity portfolio as of december 31 , 2015 was comprised of fixed-rate home equity loans? | As of December 31, 2009, approximately $6.7 billion of stock repurchases remained under Citi’s authorized repurchase programs. No material repurchases were made in 2009 or 2008. In addition, for so long as the U. S. government holds any Citigroup common stock or trust preferred securities acquired pursuant to the preferred stock exchange offers, Citigroup has agreed not to acquire, repurchase, or redeem any Citigroup equity or trust preferred securities, other than pursuant to administering its employee benefit plans or other customary exceptions, or with the consent of the U. S. government. See also “Supervision and Regulation. ” Tangible Common Equity TCE, as defined by Citigroup, represents Common equity less Goodwill and Intangible assets (other than Mortgage Servicing Rights (MSRs)) net of the related net deferred taxes. Other companies may calculate TCE in a manner different from that of Citigroup. Citi’s TCE was $118.2 billion and $31.1 billion at December 31, 2009 and 2008, respectively. The TCE ratio (TCE divided by risk-weighted assets) was 10.9% and 3.1% at December 31, 2009 and 2008, respectively. A reconciliation of Citigroup’s total stockholders’ equity to TCE follows:
<table><tr><td>In millions of dollars at year end, except ratios</td><td>2009</td><td>2008</td></tr><tr><td>Total Citigroup stockholders’ equity</td><td>$152,700</td><td>$141,630</td></tr><tr><td>Less:</td><td></td><td></td></tr><tr><td>Preferred stock</td><td>312</td><td>70,664</td></tr><tr><td>Common equity</td><td>$152,388</td><td>$70,966</td></tr><tr><td>Less:</td><td></td><td></td></tr><tr><td>Goodwill</td><td>25,392</td><td>27,132</td></tr><tr><td>Intangible assets (other than MSRs)</td><td>8,714</td><td>14,159</td></tr><tr><td>Related net deferred taxes</td><td>68</td><td>-1,382</td></tr><tr><td>Tangible common equity (TCE)</td><td>$118,214</td><td>$31,057</td></tr><tr><td>Tangible assets</td><td></td><td></td></tr><tr><td>GAAP assets</td><td>$1,856,646</td><td>$1,938,470</td></tr><tr><td>Less:</td><td></td><td></td></tr><tr><td>Goodwill</td><td>25,392</td><td>27,132</td></tr><tr><td>Intangible assets (other than MSRs)</td><td>8,714</td><td>14,159</td></tr><tr><td>Related deferred tax assets</td><td>386</td><td>1,285</td></tr><tr><td>Tangible assets (TA)</td><td>$1,822,154</td><td>$1,895,894</td></tr><tr><td>Risk-weighted assets (RWA)</td><td>$1,088,526</td><td>$996,247</td></tr><tr><td>TCE/TA ratio</td><td>6.49%</td><td>1.64%</td></tr><tr><td>TCE ratio(TCE/RWA)</td><td>10.86%</td><td>3.12%</td></tr></table>
Capital Resources of Citigroup’s Depository Institutions Citigroup’s U. S. subsidiary depository institutions are subject to risk-based capital guidelines issued by their respective primary federal bank regulatory agencies, which are similar to the guidelines of the Federal Reserve Board. To be “well capitalized” under these regulatory definitions, Citigroup’s depository institutions must have a Tier 1 Capital ratio of at least 6%, a Total Capital (Tier 1 Capital + Tier 2 Capital) ratio of at least 10%, and a Leverage ratio of at least 5%, and not be subject to a regulatory directive to meet and maintain higher capital levels. At December 31, 2009, all of Citigroup’s subsidiary depository institutions were “well capitalized” under federal bank regulatory agency definitions, including Citigroup’s primary depository institution, Citibank, N. A. , as noted in the following table: Citibank, N. A. Components of Capital and Ratios Under Regulatory Guidelines
<table><tr><td>In billions of dollars at year end</td><td>2009</td><td>2008</td></tr><tr><td>Tier 1 Capital</td><td>$96.8</td><td>$71.0</td></tr><tr><td>Total Capital (Tier 1 Capital and Tier 2 Capital)</td><td>110.6</td><td>108.4</td></tr><tr><td>Tier 1 Capital ratio</td><td>13.16%</td><td>9.94%</td></tr><tr><td>Total Capital ratio</td><td>15.03</td><td>15.18</td></tr><tr><td>Leverage ratio-1</td><td>8.31</td><td>5.82</td></tr></table>
(1) Tier 1 Capital divided by each period’s quarterly adjusted average total assets. Citibank, N. A. had a $2.8 billion net loss for 2009. In addition, during 2009, Citibank, N. A. received capital contributions from its immediate parent company, Citicorp, in the amount of $33.0 billion. Total subordinated notes issued to Citibank, N. A. ’s immediate parent company, Citicorp, included in Citibank, N. A. ’s Tier 2 Capital declined from $28.2 billion outstanding at December 31, 2008 to $4.0 billion outstanding at December 31, 2009, reflecting the redemption of $24.2 billion of subordinated notes during 2009. then-current assessment base in the quarter determined by the FDIC. If the FDIC were to adopt this approach, Citi estimates the net impact to Citibank would be approximately $900 million, based on its current assessment base. As an alternative to either of the proposals put forth by the FDIC, in commenting on the FDIC鈥檚 notice of proposed rulemaking, industry groups recommended that in lieu of any surcharge on large banks, the FDIC maintain the assessment rate framework in effect as of year-end 2015 until the reserve ratio reaches 1.35%, which would be expected to occur by year-end 2019 (and within the timeframe required under the Dodd-Frank Act). It is not certain when the FDIC鈥檚 proposal will be finalized and what the ultimate impact will be to Citi. Additional Interest Rate Details Average Balances and Interest Rates鈥擜ssets(1)(2)(3)(4)
<table><tr><td></td><td colspan="3">Average volume</td><td colspan="3">Interest revenue</td><td colspan="3">% Average rate</td></tr><tr><td>In millions of dollars, except rates</td><td>2015</td><td>2014</td><td>2013</td><td>2015</td><td>2014</td><td>2013</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Assets</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Deposits with banks<sup>-5</sup></td><td>$133,790</td><td>$161,359</td><td>$144,904</td><td>$727</td><td>$959</td><td>$1,026</td><td>0.54%</td><td>0.59%</td><td>0.71%</td></tr><tr><td>Federal funds sold and securities borrowed or purchased under agreements to resell<sup>-6</sup></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In U.S. offices</td><td>$150,359</td><td>$153,688</td><td>$158,237</td><td>$1,211</td><td>$1,034</td><td>$1,133</td><td>0.81%</td><td>0.67%</td><td>0.72%</td></tr><tr><td>In offices outside the U.S.<sup>-5</sup></td><td>84,006</td><td>101,177</td><td>109,233</td><td>1,305</td><td>1,332</td><td>1,433</td><td>1.55</td><td>1.32</td><td>1.31</td></tr><tr><td>Total</td><td>$234,365</td><td>$254,865</td><td>$267,470</td><td>$2,516</td><td>$2,366</td><td>$2,566</td><td>1.07%</td><td>0.93%</td><td>0.96%</td></tr><tr><td>Trading account assets<sup>-7(8)</sup></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In U.S. offices</td><td>$114,639</td><td>$114,910</td><td>$126,123</td><td>$3,945</td><td>$3,472</td><td>$3,728</td><td>3.44%</td><td>3.02%</td><td>2.96%</td></tr><tr><td>In offices outside the U.S.<sup>-5</sup></td><td>103,348</td><td>119,801</td><td>127,291</td><td>2,141</td><td>2,538</td><td>2,683</td><td>2.07</td><td>2.12</td><td>2.11</td></tr><tr><td>Total</td><td>$217,987</td><td>$234,711</td><td>$253,414</td><td>$6,086</td><td>$6,010</td><td>$6,411</td><td>2.79%</td><td>2.56%</td><td>2.53%</td></tr><tr><td>Investments</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In U.S. offices</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Taxable</td><td>$214,714</td><td>$188,910</td><td>$174,084</td><td>$3,812</td><td>$3,286</td><td>$2,713</td><td>1.78%</td><td>1.74%</td><td>1.56%</td></tr><tr><td>Exempt from U.S. income tax</td><td>20,034</td><td>20,386</td><td>18,075</td><td>443</td><td>626</td><td>811</td><td>2.21</td><td>3.07</td><td>4.49</td></tr><tr><td>In offices outside the U.S.<sup>-5</sup></td><td>102,376</td><td>113,163</td><td>114,122</td><td>3,071</td><td>3,627</td><td>3,761</td><td>3.00</td><td>3.21</td><td>3.30</td></tr><tr><td>Total</td><td>$337,124</td><td>$322,459</td><td>$306,281</td><td>$7,326</td><td>$7,539</td><td>$7,285</td><td>2.17%</td><td>2.34%</td><td>2.38%</td></tr><tr><td>Loans (net of unearned income)<sup>(9)</sup></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>In U.S. offices</td><td>$354,439</td><td>$361,769</td><td>$354,707</td><td>$24,558</td><td>$26,076</td><td>$25,941</td><td>6.93%</td><td>7.21%</td><td>7.31%</td></tr><tr><td>In offices outside the U.S.<sup>-5</sup></td><td>273,072</td><td>296,656</td><td>292,852</td><td>15,988</td><td>18,723</td><td>19,660</td><td>5.85</td><td>6.31</td><td>6.71</td></tr><tr><td>Total</td><td>$627,511</td><td>$658,425</td><td>$647,559</td><td>$40,546</td><td>$44,799</td><td>$45,601</td><td>6.46%</td><td>6.80%</td><td>7.04%</td></tr><tr><td>Other interest-earning assets<sup>-10</sup></td><td>$55,060</td><td>$40,375</td><td>$38,233</td><td>$1,839</td><td>$507</td><td>$602</td><td>3.34%</td><td>1.26%</td><td>1.57%</td></tr><tr><td>Total interest-earning assets</td><td>$1,605,837</td><td>$1,672,194</td><td>$1,657,861</td><td>$59,040</td><td>$62,180</td><td>$63,491</td><td>3.68%</td><td>3.72%</td><td>3.83%</td></tr><tr><td>Non-interest-earning assets<sup>-7</sup></td><td>$218,000</td><td>$224,721</td><td>$222,526</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets from discontinued operations</td><td>—</td><td>—</td><td>2,909</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets</td><td>$1,823,837</td><td>$1,896,915</td><td>$1,883,296</td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
Net interest revenue includes the taxable equivalent adjustments related to the tax-exempt bond portfolio (based on the U. S. federal statutory tax rate of 35%) of $487 million, $498 million and $521 million for 2015, 2014 and 2013, respectively. Interest rates and amounts include the effects of risk management activities associated with the respective asset categories. Monthly or quarterly averages have been used by certain subsidiaries where daily averages are unavailable. Detailed average volume, Interest revenue and Interest expense exclude Discontinued operations. See Note 2 to the Consolidated Financial Statements. Average rates reflect prevailing local interest rates, including inflationary effects and monetary corrections in certain countries. Average volumes of securities borrowed or purchased under agreements to resell are reported net pursuant to ASC 210-20-45. However, Interest revenue excludes the impact of ASC 210-20-45. The fair value carrying amounts of derivative contracts are reported net, pursuant to ASC 815-10-45, in Non-interest-earning assets and Other non-interest bearing liabilities. Interest expense on Trading account liabilities of ICG is reported as a reduction of Interest revenue. Interest revenue and Interest expense on cash collateral positions are reported in interest on Trading account assets and Trading account liabilities, respectively. Includes cash-basis loans. Includes brokerage receivables. During 2015, continued management actions, primarily the sale or transfer to held-for-sale of approximately $1.5 billion of delinquent residential first mortgages, including $0.9 billion in the fourth quarter largely associated with the transfer of CitiFinancial loans to held-for-sale referenced above, were the primary driver of the overall improvement in delinquencies within Citi Holdings’ residential first mortgage portfolio. Credit performance from quarter to quarter could continue to be impacted by the amount of delinquent loan sales or transfers to held-for-sale, as well as overall trends in HPI and interest rates. North America Residential First Mortgages—State Delinquency Trends The following tables set forth the six U. S. states and/or regions with the highest concentration of Citi’s residential first mortgages.
<table><tr><td>In billions of dollars</td><td>December 31, 2015</td><td>December 31, 2014</td></tr><tr><td>State<sup>-1</sup></td><td>ENR<sup>-2</sup></td><td>ENRDistribution</td><td>90+DPD%</td><td>%LTV >100%<sup>-3</sup></td><td>RefreshedFICO</td><td>ENR<sup>-2</sup></td><td>ENRDistribution</td><td>90+DPD%</td><td>%LTV >100%<sup>-3</sup></td><td>RefreshedFICO</td></tr><tr><td>CA</td><td>$19.2</td><td>37%</td><td>0.2%</td><td>1%</td><td>754</td><td>$18.9</td><td>31%</td><td>0.6%</td><td>2%</td><td>745</td></tr><tr><td>NY/NJ/CT<sup>-4</sup></td><td>12.7</td><td>25</td><td>0.8</td><td>1</td><td>751</td><td>12.2</td><td>20</td><td>1.9</td><td>2</td><td>740</td></tr><tr><td>VA/MD</td><td>2.2</td><td>4</td><td>1.2</td><td>2</td><td>719</td><td>3.0</td><td>5</td><td>3.0</td><td>8</td><td>695</td></tr><tr><td>IL<sup>-4</sup></td><td>2.2</td><td>4</td><td>1.0</td><td>3</td><td>735</td><td>2.5</td><td>4</td><td>2.5</td><td>9</td><td>713</td></tr><tr><td>FL<sup>-4</sup></td><td>2.2</td><td>4</td><td>1.1</td><td>4</td><td>723</td><td>2.8</td><td>5</td><td>3.0</td><td>14</td><td>700</td></tr><tr><td>TX</td><td>1.9</td><td>4</td><td>1.0</td><td>—</td><td>711</td><td>2.5</td><td>4</td><td>2.7</td><td>—</td><td>680</td></tr><tr><td>Other</td><td>11.0</td><td>21</td><td>1.3</td><td>2</td><td>710</td><td>18.2</td><td>30</td><td>3.3</td><td>7</td><td>677</td></tr><tr><td>Total<sup>-5</sup></td><td>$51.5</td><td>100%</td><td>0.7%</td><td>1%</td><td>738</td><td>$60.1</td><td>100%</td><td>2.1%</td><td>4%</td><td>715</td></tr></table>
Note: Totals may not sum due to rounding. (1) Certain of the states are included as part of a region based on Citi’s view of similar HPI within the region. (2) Ending net receivables. Excludes loans in Canada and Puerto Rico, loans guaranteed by U. S. government agencies, loans recorded at fair value and loans subject to long term standby commitments (LTSCs). Excludes balances for which FICO or LTV data are unavailable. (3) LTV ratios (loan balance divided by appraised value) are calculated at origination and updated by applying market price data. (4) New York, New Jersey, Connecticut, Florida and Illinois are judicial states. (5) Improvement in state trends during 2015 was primarily due to the sale or transfer to held-for-sale of residential first mortgages, including the transfer of CitiFinancial residential first mortgages to held-for-sale in the fourth quarter of 2015. Foreclosures A substantial majority of Citi’s foreclosure inventory consists of residential first mortgages. At December 31, 2015, Citi’s foreclosure inventory included approximately $0.1 billion, or 0.2%, of the total residential first mortgage portfolio, compared to $0.6 billion, or 0.9%, at December 31, 2014, based on the dollar amount of ending net receivables of loans in foreclosure inventory, excluding loans that are guaranteed by U. S. government agencies and loans subject to LTSCs. North America Consumer Mortgage Quarterly Credit Trends —Net Credit Losses and Delinquencies—Home Equity Loans Citi’s home equity loan portfolio consists of both fixed-rate home equity loans and loans extended under home equity lines of credit. Fixed-rate home equity loans are fully amortizing. Home equity lines of credit allow for amounts to be drawn for a period of time with the payment of interest only and then, at the end of the draw period, the then-outstanding amount is converted to an amortizing loan (the interest-only payment feature during the revolving period is standard for this product across the industry). After conversion, the home equity loans typically have a 20-year amortization period. As of December 31, 2015, Citi’s home equity loan portfolio of $22.8 billion consisted of $6.3 billion of fixed-rate home equity loans and $16.5 billion of loans extended under home equity lines of credit (Revolving HELOCs). |
1 | How many Notional exceed the average of Notional in 2008? | Hologic, Inc. Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) The aggregate purchase price for Suros of approximately $248,000 (subject to adjustment) consisted of 2,300 shares of Hologic Common Stock valued at $106,500, cash paid of $139,000, and approximately $2,600 for acquisition related fees and expenses. The Company determined the fair value of the shares issued in connection with the acquisition in accordance with EITF Issue No.99-12, Determination of the Measurement Date for the Market Price of Acquirer Securities Issued in a Purchase Business Combination. The components and allocation of the purchase price, consists of the following approximate amounts:
<table><tr><td>Net tangible assets acquired as of July 27, 2006</td><td>$12,000</td></tr><tr><td>In-process research and development</td><td>4,900</td></tr><tr><td>Developed technology and know how</td><td>46,000</td></tr><tr><td>Customer relationship</td><td>17,900</td></tr><tr><td>Trade name</td><td>5,800</td></tr><tr><td>Deferred income taxes</td><td>-21,300</td></tr><tr><td>Goodwill</td><td>182,800</td></tr><tr><td>Estimated Purchase Price</td><td>$248,100</td></tr></table>
The acquisition also provides for a two-year earn out. The earn-out will be payable in two annual cash installments equal to the incremental revenue growth in Suros’ business in the two years following the closing. The Company has considered the provision of EITF Issue No.95-8, Accounting for Contingent Consideration Paid to the Shareholders of and Acquired Enterprise in a Purchase Business Combination, and concluded that this contingent consideration represents additional purchase price. As a result, goodwill will be increased by the amount of the additional consideration, if any, when it becomes due and payable. As part of the purchase price allocation, all intangible assets that were a part of the acquisition were identified and valued. It was determined that only customer lists, trademarks and developed technology had separately identifiable values. Customer relationships represents Suros large installed base that are expected to purchase disposable products on a regular basis. Trademarks represent the Suros product names that the Company intends to continue to use. Developed technology represents currently marketable purchased products that the Company continues to resell as well as utilize to enhance and incorporate into the Company’s existing products. The estimated $4,900 of purchase price allocated to in-process research and development projects primarily related to Suros’ Disposable products. The projects are of various stages of completion and include next generation handpiece and site marker technologies. The Company expects that these projects will be completed during fiscal 2007. The deferred income tax liability relates to the tax effect of acquired identifiable intangible assets, and fair value adjustments to acquired inventory as such amounts are not deductible for tax purposes, partially offset by acquired net operating loss carry forwards that the Company believes are realizable. For all of the acquisitions discussed above, goodwill represents the excess of the purchase price over the net identifiable tangible and intangible assets acquired. The Company determined that the acquisition of each AEG, R2 and Suros resulted in the recognition of goodwill primarily because of synergies unique to the Company and the strength of its acquired workforce. Supplemental Pro-forma Information The following unaudited pro forma information presents the consolidated results of operations of the Company, R2 and Suros as if the acquisitions had occurred at the beginning of each of fiscal 2006 and 2005, GAIN INCOME AND LOANS SOLD
<table><tr><td></td><td colspan="3">Years Ended February 29 or 28</td></tr><tr><td>(In millions)</td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Gain on sales of loans originated and sold-1</td><td>$58.1</td><td>$86.7</td><td>$61.9</td></tr><tr><td>Other (losses) gains(1)</td><td>-9.6</td><td>13.0</td><td>15.2</td></tr><tr><td>Total gain income</td><td>$48.5</td><td>$99.7</td><td>$77.1</td></tr><tr><td>Loans originated and sold</td><td>$2,430.8</td><td>$2,240.2</td><td>$1,792.6</td></tr><tr><td>Receivables repurchased from public securitizations andresold</td><td>103.6</td><td>82.5</td><td>94.8</td></tr><tr><td>Total loans sold</td><td>$2,534.4</td><td>$2,322.7</td><td>$1,887.5</td></tr><tr><td>Gain percentage on loans originated and sold</td><td>2.4%</td><td>3.9%</td><td>3.5%</td></tr><tr><td>Total gain income as a percentage of total loans sold</td><td>1.9%</td><td>4.3%</td><td>4.1%</td></tr></table>
(1) Beginning in fiscal 2008, the effects of changes in valuation assumptions or funding costs related to loans originated and sold during previous quarters of the same fiscal year are presented in gain on sales of loans originated and sold. Previously, these adjustments were reported in other losses or gains. These adjustments totaled $(35.9) million in fiscal 2008. As a result, the sum of amounts previously reported for interim quarters will not equal the total reported for fiscal 2008. The impact of similar adjustments for prior fiscal years was not material. The gain on sales of loans originated and sold includes both the gain income recorded at the time of securitization and the effect of any subsequent changes in valuation assumptions or funding costs that are incurred in the same fiscal year that the loans were originated. Other losses or gains include the effects of changes in valuation assumptions or funding costs related to loans originated and sold during previous fiscal years. In addition, other losses or gains could include the effects of new public securitizations, changes in the valuation of retained subordinated bonds and the resale of receivables in existing public securitizations, as applicable. In the 2008-1 public securitization, we held $44.7 million of subordinated bonds, because the economics of doing so were more favorable than selling them in the public market. Our public securitizations typically contain an option to repurchase the securitized receivables when the outstanding balance in the pool of auto loan receivables falls below 10% of the original pool balance. This option was exercised two times in each of fiscal 2008, 2007 and 2006. In each case, the remaining eligible receivables were subsequently resold into the warehouse facility. These transactions did not have a material effect on CAF income in fiscal 2008, 2007 or 2006. Fiscal 2008 Versus Fiscal 2007. CAF income declined 35% to $85.9 million in fiscal 2008, reflecting the disruption in the global credit markets and worsening economic conditions. The gain on sales of loans originated and sold decreased 33% to $58.1 million in fiscal 2008. In the second half of the fiscal year, credit spreads in the asset-backed securities market widened, resulting in a substantial increase in CAF’s funding costs. In addition, we increased the discount rate assumption used to calculate our gain on sales of loans to 17% from 12%, and we increased our cumulative net loss assumptions on loans originated and sold during fiscal 2008 to a range of 2.7% to 3.0%, which was significantly higher than the cumulative net loss assumptions used on loans originated in fiscal 2007. As a result, the gain percentage declined to 2.4% in fiscal 2008 compared with 3.9% in fiscal 2007. We recognized other losses of $9.6 million, or $0.03 per share, in fiscal 2008, which included the effects of the increase in the discount rate and cumulative net loss assumptions on loans originated and sold in previous years. Other losses also included a $2.7 million reduction in the carrying value of the retained subordinated bonds. In fiscal 2007, we recognized other gains of $13.0 million, or $0.04 per share, which included the effects of reducing cumulative net loss assumptions on loans originated and sold in previous years. The increases in other CAF income and other direct CAF expenses in fiscal 2008 were proportionate to the growth in managed receivables during the year. Fiscal 2007 Versus Fiscal 2006. CAF income rose 27% to $132.6 million in fiscal 2007. CAF income benefited from the growth in retail vehicle unit sales, increases in the gain percentage, average amount financed and total managed receivables. The gain percentage increased to 3.9% in fiscal 2007 from 3.5% in fiscal 2006, reflecting The discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. Rates for U. S. and certain non-U. S. plans at December 31, 2018 were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate. For other non-U. S. plans, we base the discount rate on comparable indices within each of the countries. The Company measures the service cost and interest cost components of net periodic benefit cost for pension and other postretirement benefit plans by applying the specific spot rates along the yield curve to the plans’ projected cash flows. The rate of compensation increase assumption is determined by the Company based upon annual reviews. The expected long-term rate of return assumption for U. S. pension plan assets is based upon the target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class, as well as correlations among asset classes. We evaluate the rate of return assumption on an annual basis. The expected long-term rate of return assumption used in computing 2018 net periodic pension cost for the U. S. plans was 8.00 percent. As of December 31, 2018, the 5-year, 10-year and 15-year annualized return on plan assets for the primary U. S. plan was 5.5 percent, 9.2 percent and 6.4 percent, respectively. The annualized return since inception was 10.3 percent. The assumed health care cost trend rates are as follows:
<table><tr><td>December 31,</td><td>2018</td><td>2017</td></tr><tr><td>Health care cost trend rate assumed for next year</td><td>7.00%</td><td>7.00%</td></tr><tr><td>Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)</td><td>5.00%</td><td>5.00%</td></tr><tr><td>Year that the rate reaches the ultimate trend rate</td><td>2023</td><td>2022</td></tr></table>
We review external data and our own historical trends for health care costs to determine the health care cost trend rate assumptions. The Company’s U. S. postretirement benefit plans are primarily defined dollar benefit plans that limit the effects of medical inflation because the plans have established dollar limits for determining our contributions. As a result, the effect of a 1 percentage point change in the assumed health care cost trend rate would not be significant to the Company. Cash Flows Our estimated future benefit payments for funded and unfunded plans are as follows (in millions):
<table><tr><td>Year Ended December 31,</td><td>2019</td><td>2020</td><td>2021</td><td>2022</td><td>2023</td><td>2024–2028</td></tr><tr><td>Pension benefit payments</td><td>$439</td><td>$448</td><td>$460</td><td>$468</td><td>$480</td><td>$2,517</td></tr><tr><td>Other benefit payments<sup>1</sup></td><td>62</td><td>61</td><td>59</td><td>57</td><td>55</td><td>250</td></tr><tr><td>Total estimated benefit payments</td><td>$501</td><td>$509</td><td>$519</td><td>$525</td><td>$535</td><td>$2,767</td></tr></table>
1 The expected benefit payments for our other postretirement benefit plans are net of estimated federal subsidies expected to be received under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. Federal subsidies are estimated to be $3 million for the period 2019-2023 and $2 million for the period 2024-2028. The Company anticipates making pension contributions in 2019 of $32 million, all of which will be allocated to our international plans. The majority of these contributions are required by funding regulations or law. Defined Contribution Plans Our Company sponsors qualified defined contribution plans covering substantially all U. S. employees. Under the largest U. S. defined contribution plan, we match participants’ contributions up to a maximum of 3.5 percent of compensation, subject to certain limitations. Company costs related to the U. S. plans were $39 million, $61 million and $82 million in 2018, 2017 and 2016, respectively. We also sponsor defined contribution plans in certain locations outside the United States. Company costs associated with those plans were $33 million, $35 million and $37 million in 2018, 2017 and 2016, respectively. Multi-Employer Pension Plans The Company participates in various multi-employer pension plans. Multi-employer pension plans are designed to cover employees from multiple employers and are typically established under collective bargaining agreements. These plans allow multiple employers to pool their pension resources and realize efficiencies associated with the daily administration of the plan. Multi-employer plans are generally governed by a board of trustees composed of management and labor representatives and are funded through employer contributions. The Company’s expense for multi-employer pension plans totaled $6 million, $35 million and $41 million in 2018, 2017 and 2016, respectively. The decrease in 2018 was primarily driven by the refranchising of certain bottling territories in the United States during
<table><tr><td rowspan="3"></td><td colspan="4">As of December 31, 2008</td></tr><tr><td> Notional</td><td>Fair Value</td><td>Hypothetical Fair Value After +100 Basis Point Parallel Yield CurveShift</td><td>Hypothetical Change in Fair Value</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Financial assets with interest rate risk:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities-1</td><td></td><td>$174,724</td><td>$163,212</td><td>$-11,512</td></tr><tr><td>Commercial mortgage and other loans</td><td></td><td>30,570</td><td>29,474</td><td>-1,096</td></tr><tr><td>Policy loans</td><td></td><td>12,697</td><td>11,782</td><td>-915</td></tr><tr><td>Derivatives:</td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>$100,331</td><td>1,853</td><td>393</td><td>-1,460</td></tr><tr><td>Futures</td><td>7,345</td><td>-50</td><td>-301</td><td>-251</td></tr><tr><td>Options</td><td>5,371</td><td>1,895</td><td>1,758</td><td>-137</td></tr><tr><td>Forwards</td><td>9,996</td><td>-143</td><td>-188</td><td>-45</td></tr><tr><td>Variable annuity and other living benefit feature embedded derivatives-2</td><td></td><td>-3,229</td><td>-2,255</td><td>974</td></tr><tr><td>Financial liabilities with interest rate risk:</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-term and long-term debt</td><td></td><td>-27,051</td><td>-25,227</td><td>1,824</td></tr><tr><td>Debt of consolidated variable interest entities-3</td><td></td><td>-167</td><td>-167</td><td>—</td></tr><tr><td>Investment contracts</td><td></td><td>-69,933</td><td>-67,882</td><td>2,051</td></tr><tr><td>Bank customer liabilities</td><td></td><td>-1,354</td><td>-1,347</td><td>7</td></tr><tr><td>Net estimated potential loss</td><td></td><td></td><td></td><td>$-10,560</td></tr></table>
(1) Includes “trading account assets supporting insurance liabilities” and other fixed maturities classified as trading securities under U. S. GAAP, but are held for “other than trading” activities in our segments that offer insurance, retirement and annuities products. (2) The hypothetical change in fair value related to our variable annuity and other living benefit feature embedded derivatives reflects only the gross fair value change on the embedded derivatives, and excludes any offsetting impact of derivative instruments purchased to hedge such changes in fair value. (3) Included in “Other liabilities” together with all liabilities of consolidated variable interest entities. See Note 5 to the Consolidated Financial Statements for additional information regarding consolidated variable interest entities. The tables above do not include approximately $154 billion of insurance reserve and deposit liabilities as of December 31, 2009 and $152 billion as of December 31, 2008 which are not considered financial liabilities. We believe that the interest rate sensitivities of these insurance liabilities would serve as an offset to the net interest rate risk of the financial assets and liabilities, including investment contracts, which are set forth in these tables. Our net estimated potential loss in fair value as of December 31, 2009 increased $1,407 million from December 31, 2008, primarily reflecting an increase in our fixed maturity securities portfolio in 2009. The increase in our fixed maturity securities portfolio in 2009 was primarily due to a net increase in fair value driven by credit spread tightening, portfolio growth as a result of reinvestment of net investment income, the impact of foreign currency, and the acquisition of Yamato Life. The estimated changes in fair values of our financial assets shown above relate primarily to assets invested to support our insurance liabilities, but do not include separate account assets associated with products for which investment risk is borne primarily by the separate account contractholders rather than by us. Market Risk Related to Equity Prices We actively manage investment equity price risk against benchmarks in respective markets. We benchmark our return on equity holdings against a blend of market indices, mainly the S&P 500 and Russell 2000 for U. S. equities. For foreign equities we benchmark against the Tokyo Price Index, or TOPIX, and the MSCI EAFE, a market index of European, Australian, and Far Eastern equities. We target price sensitivities that approximate those of the benchmark indices. We estimate our investment equity price risk from a hypothetical 10% decline in equity benchmark market levels and measure this risk in terms of the decline in fair market value of equity securities we hold. Using this methodology, our estimated investment equity price risk as of December 31, 2009 was $809 million, representing a hypothetical decline in fair market value of equity securities we held at that date from $8.091 billion to $7.282 billion. Our estimated investment equity price risk using this methodology as of December 31, 2008 was $680 million, representing a hypothetical decline in fair market value of equity securities we held at that date from $6.803 billion to $6.123 billion. In calculating these amounts, we exclude separate account equity securities related to products for which the investment risk is borne primarily by the separate account contractholder rather than by us. In addition to equity securities, as indicated above, we hold equity-based derivatives primarily to hedge the equity price risk embedded in the living benefit features in some of our variable annuity products. As of December 31, 2009, our equity-based derivatives had notional values of $7.126 billion, and were reported at fair value as a $532 million asset, and the living benefit features accounted for as embedded derivatives were reported at fair value as a $55 million liability. As of December 31, 2008, our equity-based derivatives had notional values of $7.353 billion, and were reported at fair value as a $1.908 billion asset, and the living benefits features accounted for as embedded derivatives were reported at fair value as a $3.229 billion liability. Our estimated equity price risk associated with living benefit features accounted for as embedded derivatives, net of the related equity-based derivatives used in our living benefits hedging program, was a $61 million benefit as of December 31, 2009 and a less than $10 million benefit as of December 31, 2008, estimated based on a hypothetical 10% decline in equity benchmark market levels. The higher sensitivity level as of December 31, 2009 primarily reflects the impact of our own risk on non-performance on the embedded derivative liabilities, which does not have an offsetting impact on the hedge assets. See |
97.63333 | What was the average of Finance — Finance Companies for Amortized cost Gross unrealized gains Gross unrealized losses (in million) | PART III Item 10. Directors and Executive Officers of the Registrant. Pursuant to Section 406 of the Sarbanes-Oxley Act of 2002, we have adopted a Code of Ethics for Senior Financial Officers that applies to our principal executive officer and principal financial officer, principal accounting officer and controller, and other persons performing similar functions. Our Code of Ethics for Senior Financial Officers is publicly available on our website at www. hologic. com. We intend to satisfy the disclosure requirement under Item 5.05 of Current Report on Form 8-K regarding an amendment to, or waiver from, a provision of this code by posting such information on our website, at the address specified above. The additional information required by this item is incorporated by reference to our Definitive Proxy Statement for our annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of our fiscal year. Item 11. Executive Compensation. The information required by this item is incorporated by reference to our Definitive Proxy Statement for our annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of our fiscal year. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. We maintain a number of equity compensation plans for employees, officers, directors and others whose efforts contribute to our success. The table below sets forth certain information as our fiscal year ended September 24, 2005 regarding the shares of our common stock available for grant or granted under stock option plans that (i) were approved by our stockholders, and (ii) were not approved by our stockholders. The number of securities and the exercise price of the outstanding securities have been adjusted to reflect our two-for-one stock split effected on November 30, 2005. Equity Compensation Plan Information
<table><tr><td>Plan Category</td><td>Number Of Securities To Be Issued Upon ExerciseOf Outstanding Options, Warrants And Rights (a)</td><td>Weighted-Average Exercise Price Of Outstanding Options, Warrants And Rights (b)</td><td>Number Of Securities Remaining Available For Future Issuance Under EquityCompensation Plans (excluding securities reflected in column (a)) (c)</td></tr><tr><td>Equity compensation plans approved by security holders -1</td><td>3,841,008</td><td>$7.84</td><td>1,016,520</td></tr><tr><td>Equity compensation plans not approved by security holders -2</td><td>863,604</td><td>$6.44</td><td>0</td></tr><tr><td>Total</td><td>4,704,612</td><td>$7.58</td><td>1,016,520</td></tr></table>
(1) Includes the following plans: 1986 Combination Stock Option Plan; Amended and Restated 1990 Non-employee Director Stock Option Plan; 1995 Combination Stock Option Plan; Amended and Restated 1999 Equity Incentive Plan; and 2000 Employee Stock Purchase Plan. Also includes the following plans which we assumed in connection with our acquisition of Fluoroscan Imaging Systems in 1996: FluoroScan Imaging Systems, Inc. 1994 Amended and Restated Stock Incentive Plan and FluoroScan Imaging Systems, Inc. 1995 Stock Incentive Plan. For a description of these plans, please refer to Footnote 5 contained in our consolidated financial statements. Fixed Maturity Securities Available-for-Sale The following tables present our fixed maturity securities available-for-sale by industry category and the associated gross unrealized gains and losses, including other-than-temporary impairment losses reported in OCI, as of December 31, 2009 and 2008. December 31,
<table><tr><td> </td><td colspan="4"> December 31, 2009</td></tr><tr><td> </td><td> Amortized cost</td><td> Gross unrealized gains</td><td> Gross unrealized losses</td><td> Carrying amount</td></tr><tr><td> </td><td colspan="4"><i>(in millions)</i> </td></tr><tr><td>Finance — Banking</td><td>$4,288.5</td><td>$68.2</td><td>$480.4</td><td>$3,876.3</td></tr><tr><td>Finance — Brokerage</td><td>428.6</td><td>11.0</td><td>6.4</td><td>433.2</td></tr><tr><td>Finance — Finance Companies</td><td>265.2</td><td>9.0</td><td>18.7</td><td>255.5</td></tr><tr><td>Finance — Financial Other</td><td>535.6</td><td>26.0</td><td>8.6</td><td>553.0</td></tr><tr><td>Finance — Insurance</td><td>2,714.9</td><td>36.5</td><td>207.9</td><td>2,543.5</td></tr><tr><td>Finance — REITS</td><td>1,327.1</td><td>14.6</td><td>80.0</td><td>1,261.7</td></tr><tr><td>Industrial — Basic Industry</td><td>1,921.4</td><td>74.9</td><td>19.1</td><td>1,977.2</td></tr><tr><td>Industrial — Capital Goods</td><td>2,364.0</td><td>99.1</td><td>33.0</td><td>2,430.1</td></tr><tr><td>Industrial — Communications</td><td>2,761.6</td><td>174.3</td><td>21.8</td><td>2,914.1</td></tr><tr><td>Industrial — Consumer Cyclical</td><td>1,597.0</td><td>69.4</td><td>32.0</td><td>1,634.4</td></tr><tr><td>Industrial — Consumer Non-Cyclical</td><td>3,149.6</td><td>172.0</td><td>27.4</td><td>3,294.2</td></tr><tr><td>Industrial — Energy</td><td>1,933.3</td><td>108.3</td><td>19.2</td><td>2,022.4</td></tr><tr><td>Industrial — Other</td><td>700.0</td><td>22.8</td><td>20.0</td><td>702.8</td></tr><tr><td>Industrial — Technology</td><td>765.0</td><td>31.6</td><td>11.2</td><td>785.4</td></tr><tr><td>Industrial — Transportation</td><td>934.9</td><td>41.7</td><td>18.4</td><td>958.2</td></tr><tr><td>Utility — Electric</td><td>2,518.6</td><td>115.6</td><td>18.6</td><td>2,615.6</td></tr><tr><td>Utility — Natural Gas</td><td>1,086.2</td><td>66.0</td><td>7.4</td><td>1,144.8</td></tr><tr><td>Utility — Other</td><td>122.8</td><td>3.2</td><td>0.6</td><td>125.4</td></tr><tr><td>FDIC guaranteed</td><td>96.1</td><td>1.4</td><td>—</td><td>97.5</td></tr><tr><td>Government guaranteed</td><td>1,102.8</td><td>76.3</td><td>16.9</td><td>1,162.2</td></tr><tr><td>Total corporate securities</td><td>30,613.2</td><td>1,221.9</td><td>1,047.6</td><td>30,787.5</td></tr><tr><td>Residential pass-through securities</td><td>3,019.1</td><td>86.0</td><td>3.8</td><td>3,101.3</td></tr><tr><td>Commercial mortgage-backed securities</td><td>4,898.0</td><td>20.9</td><td>1,319.2</td><td>3,599.7</td></tr><tr><td>Residential collateralized mortgage obligations -1</td><td>1,198.9</td><td>13.5</td><td>114.9</td><td>1,097.5</td></tr><tr><td>Asset-backed securities — Home equity -2</td><td>487.1</td><td>—</td><td>173.1</td><td>314.0</td></tr><tr><td>Asset-backed securities — All other</td><td>1,308.1</td><td>21.1</td><td>15.5</td><td>1,313.7</td></tr><tr><td>Collateralized debt obligations — Credit</td><td>197.2</td><td>1.5</td><td>67.0</td><td>131.7</td></tr><tr><td>Collateralized debt obligations — CMBS</td><td>257.0</td><td>—</td><td>129.4</td><td>127.6</td></tr><tr><td>Collateralized debt obligations — Loans</td><td>101.4</td><td>—</td><td>21.4</td><td>80.0</td></tr><tr><td>Collateralized debt obligations — ABS -3</td><td>51.9</td><td>0.3</td><td>21.9</td><td>30.3</td></tr><tr><td>Total mortgage-backed and other asset-backed securities</td><td>11,518.7</td><td>143.3</td><td>1,866.2</td><td>9,795.8</td></tr><tr><td>U.S. Government and agencies</td><td>550.1</td><td>9.1</td><td>0.5</td><td>558.7</td></tr><tr><td>States and political subdivisions</td><td>2,008.7</td><td>53.4</td><td>13.5</td><td>2,048.6</td></tr><tr><td>Non-U.S. governments</td><td>421.1</td><td>42.4</td><td>1.1</td><td>462.4</td></tr><tr><td>Total fixed maturity securities, available-for-sale</td><td>$45,111.8</td><td>$1,470.1</td><td>$2,928.9</td><td>$43,653.0</td></tr></table>
(1) Includes exposure to Alt-a mortgage loans with an amortized cost of $59.6 million, gross unrealized losses of $18.2 million, and a carrying amount of $41.4 million. The Alt-a portfolio has a weighted average rating of BBB and 66% are 2005 and prior vintages. (2) This exposure is all related to sub-prime mortgage loans. (3) Includes exposure to sub-prime mortgage loans with an amortized cost of $27.4 million, gross unrealized gains of $0.3 million, gross unrealized losses of $17.9 million, and a carrying amount of $9.8 million. Gross project expenses related to our Business Transformation Project, inclusive of pay-related expense, increased by $20.8 million in fiscal 2011 from fiscal 2010 and by $41.6 million in fiscal 2010 from fiscal 2009. The increase in fiscal 2011 resulted from increased project spend including the initial stages of ramping up of our shared services center and a provision for severance resulting from the implementation of an involuntary severance plan. The increase in fiscal 2010 resulted from only six months of activity being included in fiscal 2009, as the Business Transformation Project began in January 2009. Provided the improvements needed in the underlying systems are obtained in the first half of fiscal 2012, we anticipate the software will be ready for its intended use in the second half of fiscal 2012, which will result in increased expense from both software amortization and deployment costs. We will also incur increased costs from the ramp up of our shared services center, continuing costs for additional phases of our Business Transformation Project and information technology support costs. We believe the increase in gross project expenses, including all pay-related expenses, related to the Business Transformation Project in fiscal 2012 as compared to fiscal 2011 will be approximately $175 million to $195 million. We adjust the carrying values of our COLI policies to their cash surrender values on an ongoing basis. The cash surrender values of these policies are largely based on the values of underlying investments, which through fiscal 2011 included publicly traded securities. As a result, the cash surrender values of these policies fluctuated with changes in the market value of such securities. The changes in the financial markets resulted in gains for these policies of $28.2 million in fiscal 2011, compared to gains for these policies of $21.6 million in fiscal 2010 and losses of $43.8 million in fiscal 2009. Near the end of fiscal 2011, we reallocated all of our policies into low-risk, fixed-income securities and therefore we no longer expect significant volatility in operating income, net earnings and earnings per share in future periods related to these policies. The provision for losses on receivables included within operating expenses decreased by $39.7 million in fiscal 2010 over fiscal 2009. The decrease in our provision for losses on receivables in fiscal 2010 reflects fewer customer accounts exceeding our threshold for write-off in fiscal 2010 as compared to fiscal 2009. Customer accounts written off, net of recoveries, were $37.8 million, or 0.10% of sales, $34.3 million, or 0.10% of sales, and $71.9 million, or 0.20% of sales, for fiscal 2011, 2010 and 2009, respectively. Our provision for losses on receivables will fluctuate with general market conditions, as well as the circumstances of our customers. Net Earnings Net earnings for fiscal 2011 decreased 2.4% over the comparable prior year period. After adjusting for the estimated impact of the 53rd week in fiscal 2010, the decrease would have been 0.3%. This adjusted decrease was primarily due to the factors discussed above and an increase in the effective tax rate. The effective tax rate for fiscal 2011 was 36.96%, compared to an effective tax rate of 36.20% for fiscal 2010. The difference between the tax rates for the two periods resulted largely from the one-time reversal of interest accruals for tax contingencies related to our settlement with the Internal Revenue Service (IRS) in the first quarter of fiscal 2010. Net earnings increased 11.7% in fiscal 2010 from fiscal 2009. After adjusting for the estimated impact of the 53rd week in fiscal 2010, the increase would have been 9.5%. This adjusted increase was primarily due to a reduction in the effective income tax rate, as well as the factors discussed above. The effective tax rate for fiscal 2010 was 36.20%, compared to an effective tax rate of 40.37% for fiscal 2009. The difference between the tax rates for the two periods resulted largely from the one-time reversal of interest accruals for tax contingencies related to our settlement with the Internal Revenue Service (IRS) in the first quarter of fiscal 2010. Set forth below is a reconciliation of actual net earnings to adjusted net earnings for the periods presented (see further discussion at “Impact of 53-week fiscal year in Fiscal 2010” above):
<table><tr><td></td><td>2011</td><td>2010 (53 Weeks)</td><td> 2009</td></tr><tr><td></td><td colspan="3"> (In thousands)</td></tr><tr><td>Net earnings for the 53/52 week periods</td><td>$1,152,030</td><td>$1,179,983</td><td>$1,055,948</td></tr><tr><td>Estimated net earnings for the additional week in fiscal 2010</td><td>—</td><td>24,127</td><td>—</td></tr><tr><td>Adjusted net earnings</td><td>$1,152,030</td><td>$1,155,856</td><td>$1,055,948</td></tr><tr><td>Actual percentage (decrease) increase</td><td>-2.4%</td><td>11.7%</td><td></td></tr><tr><td>Adjusted percentage (decrease) increase</td><td>-0.3%</td><td>9.5%</td><td></td></tr></table>
The effective tax rate of 36.96% for fiscal 2011 was favorably impacted primarily by two items. First, we recorded a tax benefit of approximately $17.0 million for the reversal of valuation allowances previously recorded on state net operating loss carryforwards. Second, we adjust the carrying values of our COLI policies to their cash surrender values. The gain of $28.2 million recorded in fiscal 2011 was primarily nontaxable for income tax purposes, and had the impact of decreasing income tax expense for the period by $11.1 million. Partially offsetting these favorable impacts was the recording of $9.3 million in tax and interest related to various federal, foreign and state uncertain tax positions. The effective tax rate of 36.20% for fiscal 2010 was favorably impacted primarily by two items. First, we recorded an income tax benefit of approximately $29.0 million resulting from the one-time reversal of a previously accrued liability related to the settlement with the IRS (See “Liquidity and Capital Resources, Other Considerations, BSCC Cooperative Structure” for additional discussion). Second, the gain of $21.6 million recorded to adjust the carrying value of COLI policies to their cash surrender values in fiscal 2010 was non-taxable for income tax purposes, and had the impact of decreasing income tax expense for the period by $8.3 million. The effective tax rate of 40.37% for fiscal 2009 was unfavorably impacted primarily by two factors. First, we recorded tax adjustments related to federal and state uncertain tax positions of $31.0 million. Second, the loss of $43.8 million recorded to adjust the carrying value of COLI policies to their cash surrender values in fiscal 2009 was non-deductible for income tax purposes, and had the impact of increasing income tax expense for |
1,918 | What is the sum of investment income in the range of 100 and 1000 in 2014? (in million) | $43.3 million in 2011 compared to $34.1 million in 2010. The Retail segment represented 13% and 15% of the Company’s total net sales in 2011 and 2010, respectively. The Retail segment’s operating income was $4.7 billion, $3.2 billion, and $2.3 billion during 2012, 2011, and 2010 respectively. These year-over-year increases in Retail operating income were primarily attributable to higher overall net sales that resulted in significantly higher average revenue per store during the respective years. Gross Margin Gross margin for 2012, 2011 and 2010 are as follows (in millions, except gross margin percentages):
<table><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Net sales</td><td>$156,508</td><td>$108,249</td><td>$65,225</td></tr><tr><td>Cost of sales</td><td>87,846</td><td>64,431</td><td>39,541</td></tr><tr><td>Gross margin</td><td>$68,662</td><td>$43,818</td><td>$25,684</td></tr><tr><td>Gross margin percentage</td><td>43.9%</td><td>40.5%</td><td>39.4%</td></tr></table>
The gross margin percentage in 2012 was 43.9%, compared to 40.5% in 2011. This year-over-year increase in gross margin was largely driven by lower commodity and other product costs, a higher mix of iPhone sales, and improved leverage on fixed costs from higher net sales. The increase in gross margin was partially offset by the impact of a stronger U. S. dollar. The gross margin percentage during the first half of 2012 was 45.9% compared to 41.4% during the second half of 2012. The primary drivers of higher gross margin in the first half of 2012 compared to the second half are a higher mix of iPhone sales and improved leverage on fixed costs from higher net sales. Additionally, gross margin in the second half of 2012 was also affected by the introduction of new products with flat pricing that have higher cost structures and deliver greater value to customers, price reductions on certain existing products, higher transition costs associated with product launches, and continued strengthening of the U. S. dollar; partially offset by lower commodity costs. The gross margin percentage in 2011 was 40.5%, compared to 39.4% in 2010. This year-over-year increase in gross margin was largely driven by lower commodity and other product costs. The Company expects to experience decreases in its gross margin percentage in future periods, as compared to levels achieved during 2012, and the Company anticipates gross margin of about 36% during the first quarter of 2013. Expected future declines in gross margin are largely due to a higher mix of new and innovative products with flat or reduced pricing that have higher cost structures and deliver greater value to customers and anticipated component cost and other cost increases. Future strengthening of the U. S. dollar could further negatively impact gross margin. The foregoing statements regarding the Company’s expected gross margin percentage in future periods, including the first quarter of 2013, are forward-looking and could differ from actual results because of several factors including, but not limited to those set forth above in Part I, Item 1A of this Form 10-K under the heading “Risk Factors” and those described in this paragraph. In general, gross margins and margins on individual products will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions and potential increases in the cost of components, as well as potential increases in the costs of outside manufacturing services and a potential shift in the Company’s sales mix towards products with lower gross margins. In response to competitive pressures, the Company expects it will continue to take product pricing actions, which would adversely affect gross margins. Gross margins could also be affected by the Company’s ability to manage product quality and warranty costs effectively and to stimulate demand for certain of its products. Due to the Company’s significant international operations, financial results can be significantly affected in the short-term by fluctuations in exchange rates. PRUDENTIAL FINANCIAL, INC. Notes to Consolidated Financial Statements The Company’s liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in “other contract liabilities” in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. See Note 11 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Premium deficiency reserves included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration traditional, non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; long-term care; and for certain individual health policies. Unpaid claims and claim adjustment expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet dates related to group disability products. Unpaid claim liabilities that are discounted use interest rates ranging from 3.0% to 6.4%. Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows:
<table><tr><td></td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td>Individual annuities</td><td>$37,384</td><td>$37,718</td></tr><tr><td>Group annuities</td><td>27,141</td><td>27,200</td></tr><tr><td>Guaranteed investment contracts and guaranteed interest accounts</td><td>14,122</td><td>14,428</td></tr><tr><td>Funding agreements</td><td>3,997</td><td>4,691</td></tr><tr><td>Interest-sensitive life contracts</td><td>32,502</td><td>30,406</td></tr><tr><td>Dividend accumulation and other</td><td>21,638</td><td>21,707</td></tr><tr><td>Total policyholders’ account balances</td><td>$136,784</td><td>$136,150</td></tr></table>
Policyholders’ account balances primarily represent an accumulation of account deposits plus credited interest less withdrawals, expense charges and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under nonlife contingent payout annuities. Included in “Funding agreements” at December 31, 2015 and 2014 are $2,957 million and $2,705 million, respectively, related to the Company’s FANIP. Under this program, which has a maximum authorized amount of $15 billion, a Delaware statutory trust issues medium-term notes to investors that are secured by funding agreements issued to the trust by Prudential Insurance. The outstanding notes have fixed or floating interest rates that range from 0.5% to 2.6% and original maturities ranging from two to ten years. Included in the amounts at December 31, 2015 and 2014 is the medium-term note liability, which is carried at amortized cost, of $2,958 million and $2,705 million, respectively. For additional details on the FANIP, see Note 5. Also included in “Funding agreements” are collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”) of $1,001 million and $1,947 million, as of December 31, 2015 and 2014, respectively. These obligations, which are carried at amortized cost, have fixed or floating interest rates that range from 0.8% to 1.7% and original maturities ranging from four to seven years. For additional details on the FHLBNY program, see Note 14. Interest crediting rates range from 0% to 7.5% for interest-sensitive life contracts and from 0% to 12.5% for contracts other than interest-sensitive life. Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%.11. CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held-to-maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issues fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit. In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (no-lapse guarantee). Variable life and variable universal life contracts are offered with general and separate account options. Operating Results The following table sets forth the Individual Annuities segment’s operating results for the periods indicated.
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Operating results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$4,695</td><td>$4,710</td><td>$4,465</td></tr><tr><td>Benefits and expenses</td><td>2,898</td><td>3,243</td><td>2,380</td></tr><tr><td>Adjusted operating income</td><td>1,797</td><td>1,467</td><td>2,085</td></tr><tr><td>Realized investment gains (losses), net, and related adjustments</td><td>1,588</td><td>521</td><td>-5,918</td></tr><tr><td>Related charges</td><td>-624</td><td>-137</td><td>1,716</td></tr><tr><td>Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures</td><td>$2,761</td><td>$1,851</td><td>$-2,117</td></tr></table>
Adjusted Operating Income 2015 to 2014 Annual Comparison. Adjusted operating income increased $330 million. Excluding the impacts of changes in the estimated profitability of the business, discussed below, adjusted operating income increased $39 million. The increase was driven by higher asset-based fee income due to growth in average variable annuity account values, net of a related increase in asset-based commissions, a decline in interest expense driven by lower debt, and a decline in amortization costs. Partially offsetting this net increase were costs for contract cancellations in connection with remediation of an error in an illustration contained in certain product marketing materials, higher operating expenses and a decline in net investment income driven by lower income on non-coupon investments. The impacts of changes in the estimated profitability of the business include adjustments to the amortization of DAC and other costs and to the reserves for the GMDB and GMIB features of our variable annuity products. These adjustments resulted in a net benefit of $162 million and a net charge of $129 million in 2015 and 2014, respectively. The $162 million net benefit in 2015 primarily reflected the net impact of equity market performance on contractholder accounts relative to our assumptions, as well as a net benefit resulting from our annual review and update of assumptions. The $129 million net charge in 2014 primarily reflected the impact of lower expected rates of return on fixed income investments within contractholder accounts and on future expected claims relative to our assumptions, which more than offset a net favorable impact from equity market performance. Partially offsetting this net charge was a net benefit resulting from the annual review and update of assumptions performed in that year.2014 to 2013 Annual Comparison. Adjusted operating income decreased $618 million. Excluding the impacts of changes in the estimated profitability of the business, discussed below, adjusted operating income increased $207 million. The increase was driven by higher asset-based fee income due to growth in average variable annuity account values, net of a related increase in asset-based commissions. Also contributing to the increase were lower amortization costs and reserve provisions for the GMDB and GMIB features of our variable annuity products. Adjustments to the amortization of DAC and other costs and to the reserves for the GMDB and GMIB features of our variable annuity products resulted in a net charge of $129 million and a net benefit of $696 million in 2014 and 2013, respectively. The $129 million net charge in 2014 primarily reflected the impact of lower expected rates of return on fixed income investments within contractholder accounts and on future expected claims relative to our assumptions, which more than offset a net favorable impact from equity market performance. Partially offsetting this net charge was a net benefit resulting from the annual review and update of assumptions performed in that year. The $696 million net benefit in 2013 included a $301 million net benefit resulting from the annual review and update of assumptions and other refinements performed in that year. The remaining net benefit reflected the impact of positive market performance on contractholder accounts relative to our assumptions. Revenues, Benefits and Expenses 2015 to 2014 Annual Comparison. Revenues, as shown in the table above under “—Operating Results,” decreased $15 million, primarily driven by a $27 million decrease in net investment income due to lower income on non-coupon investments, partially offset by a $19 million increase in policy charges and fee income due to growth in average variable annuity account values. Benefits and expenses, as shown in the table above under “—Operating Results,” decreased $345 million. Absent the $291 million net decrease related to the impacts of certain changes in our estimated profitability of the business discussed above, benefits and expenses decreased $54 million. Interest expense decreased $38 million driven by lower debt, and interest credited to policyholders’ account balances decreased $26 million driven by lower average account values in the general account. Partially offsetting these decreases was a $14 million increase in policyholders’ benefits driven by costs for contract cancellations, as discussed above.2014 to 2013 Annual Comparison. Revenues increased $245 million, primarily driven by a $311 million increase in policy charges and fee income, asset management and service fees and other income, due to growth in average variable annuity account values. Partially offsetting this increase was a $63 million decline in net investment income, driven by lower reinvestment rates and lower average account values in the general account due to surrenders of legacy general account products. Benefits and expenses increased $863 million. Absent the $825 million net increase related to the impacts of certain changes in our estimated profitability of the business discussed above, benefits and expenses increased $38 million. General and administrative expenses, net of capitalization, increased $111 million, driven by higher asset-based commissions and asset management costs due to account value The following table sets forth the income yield and investment income for each major investment category of our general account investments, excluding both the Closed Block division and the Japanese insurance operations’ portion of the general account which is presented separately below, for the periods indicated. The yields are based on net investment income as reported under U. S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are included in realized gains (losses).
<table><tr><td></td><td colspan="6">Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td></tr><tr><td></td><td colspan="6">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>4.67%</td><td>$5,686</td><td>4.69%</td><td>$5,461</td><td>4.65%</td><td>$5,306</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>3.79</td><td>688</td><td>3.96</td><td>730</td><td>3.99</td><td>741</td></tr><tr><td>Equity securities</td><td>6.07</td><td>197</td><td>6.49</td><td>191</td><td>7.30</td><td>174</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.62</td><td>1,338</td><td>4.96</td><td>1,271</td><td>5.27</td><td>1,145</td></tr><tr><td>Policy loans</td><td>5.52</td><td>250</td><td>5.66</td><td>253</td><td>5.45</td><td>228</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.25</td><td>38</td><td>0.21</td><td>22</td><td>0.23</td><td>26</td></tr><tr><td>Other investments</td><td>6.17</td><td>356</td><td>10.03</td><td>598</td><td>7.54</td><td>383</td></tr><tr><td>Gross investment income before investment expenses</td><td>4.33</td><td>8,553</td><td>4.63</td><td>8,526</td><td>4.52</td><td>8,003</td></tr><tr><td>Investment expenses</td><td>-0.15</td><td>-239</td><td>-0.15</td><td>-209</td><td>-0.12</td><td>-152</td></tr><tr><td>Investment income after investment expenses</td><td>4.18%</td><td>8,314</td><td>4.48%</td><td>8,317</td><td>4.40%</td><td>7,851</td></tr><tr><td>Investment results of other entities and operations-2</td><td></td><td>114</td><td></td><td>124</td><td></td><td>113</td></tr><tr><td>Total investment income</td><td></td><td>$8,428</td><td></td><td>$8,441</td><td></td><td>$7,964</td></tr></table>
(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation. (2) Includes investment income of our asset management operations and derivative operations, as described below under “—Invested Assets of Other Entities and Operations. ” The decrease in net investment income yield attributable to our general account investments, excluding both the Closed Block division and the Japanese operations’ portfolio, for 2015, compared to 2014, was primarily the result of lower income from non-coupon investments and lower fixed income reinvestment rates. The increase in net investment income yield attributable to our general account investments, excluding both the Closed Block division and the Japanese operations’ portfolio, for 2014, compared to 2013, was primarily the result of higher income from non-coupon investments and from reinvestments within certain asset portfolios primarily into higher yielding securities, primarily during the second half of 2013. The following table sets forth the income yield and investment income for each major investment category of our Japanese insurance operations’ general account for the periods indicated. The yields are based on net investment income as reported under U. S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are included in realized gains and losses.
<table><tr><td></td><td colspan="6">Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td></tr><tr><td></td><td colspan="6">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>3.23%</td><td>$3,190</td><td>3.06%</td><td>$3,301</td><td>2.91%</td><td>$3,269</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>1.66</td><td>32</td><td>1.80</td><td>35</td><td>1.81</td><td>34</td></tr><tr><td>Equity securities</td><td>4.77</td><td>69</td><td>5.06</td><td>84</td><td>4.69</td><td>82</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.45</td><td>390</td><td>4.20</td><td>294</td><td>4.21</td><td>258</td></tr><tr><td>Policy loans</td><td>3.93</td><td>84</td><td>3.93</td><td>88</td><td>3.70</td><td>88</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.32</td><td>5</td><td>0.24</td><td>4</td><td>0.19</td><td>4</td></tr><tr><td>Other investments</td><td>5.32</td><td>133</td><td>6.67</td><td>155</td><td>6.12</td><td>170</td></tr><tr><td>Gross investment income before investment expenses</td><td>3.35</td><td>3,903</td><td>3.18</td><td>3,961</td><td>3.02</td><td>3,905</td></tr><tr><td>Investment expenses</td><td>-0.13</td><td>-155</td><td>-0.12</td><td>-153</td><td>-0.12</td><td>-156</td></tr><tr><td>Total investment income</td><td>3.22%</td><td>$3,748</td><td>3.06%</td><td>$3,808</td><td>2.90%</td><td>$3,749</td></tr></table>
(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation. The increase in net investment income yield on the Japanese insurance portfolio for 2015, compared to 2014, was primarily attributable to a higher allocation into U. S. dollar-denominated investments. |
-0.14323 | what was the percentage change in share-based compensation expense between 2012 and 2013? | Notes to Consolidated Financial Statements – (continued) (Amounts in Millions, Except per Share Amounts) common stock. The Series B Preferred Stock may be converted at our option if the closing price of our common stock multiplied by the conversion rate in effect at that time equals or exceeds 130% of the liquidation preference for 20 trading days during any consecutive 30 trading day period. Holders of the Series B Preferred Stock will be entitled to an adjustment to the conversion rate if they convert their shares in connection with a fundamental change satisfying certain specified conditions. The Series B Preferred Stock is junior to all of our existing and future debt obligations and senior to our common stock with respect to payments of dividends and rights upon liquidation, winding up or dissolution, to the extent of the liquidation preference. The number of shares outstanding, conversion rates and corresponding conversion prices and conversion shares for our Series B Preferred Stock are listed below.
<table><tr><td></td><td colspan="3">December 31,</td></tr><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Shares outstanding (actual number)</td><td>221,474</td><td>221,474</td><td>221,474</td></tr><tr><td>Conversion rate per share</td><td>76.2197</td><td>74.4500</td><td>73.1904</td></tr><tr><td>Conversion price</td><td>$13.12</td><td>$13.43</td><td>$13.66</td></tr><tr><td>Conversion shares</td><td>16.9</td><td>16.5</td><td>16.2</td></tr></table>
During 2012 and 2011, the conversion rate per share for our Series B Preferred Stock was adjusted as a result of the cumulative effect of certain cash dividends declared and paid on our common stock during the year, which resulted in a corresponding adjustment of the conversion price and conversion shares. In 2010, we launched a tender offer and purchased 303,526 shares (actual number) of our Series B Preferred Stock for cash for an aggregate purchase price of $267.6. The aggregate purchase price was calculated as the number of shares tendered multiplied by the purchase price of $869.86 per share plus unpaid dividends of $1.9, which were prorated for the period the tendered shares were outstanding, and transaction costs directly associated with the repurchase. The carrying value of the tendered shares was $293.3 and was determined based on the number of shares tendered multiplied by the liquidation preference, less the pro-rata amount of issuance costs associated with the original issuance of the preferred stock. A benefit of $25.7, representing the excess carrying value of the tendered shares over consideration from the repurchase, was recorded as an adjustment to additional paid-in capital. Additionally, the pro-rata amount of issuance costs of $10.2 was recorded as an adjustment to additional paid-in capital. The terms of our Series B Preferred Stock do not permit us to pay dividends on our common stock unless all accumulated and unpaid dividends on the Series B Preferred Stock have been or contemporaneously are declared and paid, or provision for the payment thereof has been made. We declared annual dividends of $52.50 per share, or $11.6, $11.6 and $15.6, on our Series B Preferred Stock during 2012, 2011 and 2010, respectively. Regular quarterly dividends, if declared, are $13.125 per share. Dividends on each share of Series B Preferred Stock are payable quarterly in cash or, if certain conditions are met, in common stock, at our option on January 15, April 15, July 15 and October 15, or the next business date if these dates fall on the weekend or a holiday, of each year. Dividends on our Series B Preferred Stock are cumulative from the date of issuance and are payable on each payment date to the extent that we have assets that are legally available to pay dividends and our Board of Directors, or an authorized committee of our Board, declares a dividend payable. The terms of the Series B Preferred Stock include an embedded derivative instrument, the fair value of which as of December 31, 2012 and 2011 was negligible. The Series B Preferred Stock is not considered a security with participation rights in earnings available to IPG common stockholders due to the contingent nature of the conversion feature of these securities. was estimated on the date of the grant using a Monte-Carlo simulation method. The assumptions related to this grant included expected volatility of 84.81 percent, expected dividend yield of 1.00 percent, and an expected term of 4.0 years based on the vesting term of the market condition. The risk-free rate is consistent with the assumption used to value stock options. For all other grants that vest solely upon a service condition, the fair value of the awards is estimated based upon the fair value of the underlying shares on the date of the grant. Restricted stock award and unit activity for 2011, 2010 and 2009 is summarized as follows:
<table><tr><td></td><td>Numberof Shares</td><td> Weighted-Average GrantDate Fair Value</td><td></td></tr><tr><td>Non-vested at December 31, 2008</td><td></td><td>4,123,911</td><td>$27.67</td></tr><tr><td>Granted</td><td></td><td>3,100,415</td><td>2.87</td></tr><tr><td>Vested</td><td></td><td>-804,229</td><td>16.39</td></tr><tr><td>Forfeited</td><td></td><td>-455,503</td><td>16.47</td></tr><tr><td>Non-vested at December 31, 2009</td><td></td><td>5,964,594</td><td>$17.15</td></tr><tr><td>Granted</td><td></td><td>1,166,968</td><td>6.96</td></tr><tr><td>Vested</td><td></td><td>-936,412</td><td>34.00</td></tr><tr><td>Forfeited</td><td></td><td>-1,264,706</td><td>15.97</td></tr><tr><td>Non-vested at December 31, 2010</td><td></td><td>4,930,444</td><td>$12.13</td></tr><tr><td>Granted</td><td></td><td>2,705,834</td><td>6.66</td></tr><tr><td>Vested</td><td></td><td>-1,206,373</td><td>23.36</td></tr><tr><td>Forfeited</td><td></td><td>-149,545</td><td>12.93</td></tr><tr><td>Non-vested at December 31, 2011</td><td></td><td>6,280,360</td><td>$7.60</td></tr></table>
As of December 31, 2011, the pre-tax amount of non-vested stock options and restricted stock awards and units not yet recognized was $31 million, which will be recognized over a weighted-average period of 1.4 years. No share-based compensation costs were capitalized during the years ended December 31, 2011, 2010 and 2009. Regions issued approximately 867 thousand, 799 thousand, and 638 thousand of cash-settled restricted stock units during 2011, 2010, and 2009, respectively. NOTE 17. EMPLOYEE BENEFIT PLANS PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Regions has a defined-benefit pension plan (the “pension plan”) covering only certain employees as the pension plan is closed to new entrants. Benefits under the pension plan are based on years of service and the employee’s highest five years of compensation during the last ten years of employment. Regions’ funding policy is to contribute annually at least the amount required by Internal Revenue Service minimum funding standards. Contributions are intended to provide not only for benefits attributed to service to date, but also for those expected to be earned in the future. The Company also sponsors a supplemental executive retirement program (the “SERP”), which is a non-qualified plan that provides certain senior executive officers defined benefits in relation to their compensation. Regions also sponsors defined-benefit postretirement health care plans that cover certain retired employees. For these certain employees retiring before normal retirement age, the Company currently pays a portion of the costs of certain health care benefits until the retired employee becomes eligible for Medicare. Certain retirees, participating in plans of acquired entities, are offered a Medicare supplemental benefit. The plan is contributory and contains other cost-sharing features such as deductibles and co-payments. Retiree health care benefits, as well as similar benefits for active employees, are provided through a self-insured program in which Company and retiree costs are based on the amount of benefits paid. The Company’s policy is to fund the Company’s share of the cost of health care benefits in amounts determined at the discretion of management. Postretirement life insurance is also provided to a grandfathered group of employees and retirees. Actuarially determined pension expense is charged to current operations using the projected unit credit method. All defined-benefit plans are referred to as “the plans” throughout the remainder of this footnote. Mortgage Income Mortgage income is generated through the origination and servicing of residential mortgage loans for long-term investors and sales of residential mortgage loans in the secondary market. The decrease in mortgage income during 2018 compared to 2017 was due to lower production, tighter margins and a reduction in the valuation of mortgage servicing rights and related hedges. The decreases were partially offset by increases in mortgage servicing income as a result of purchasing the rights to service a total of approximately $6.1 billion in residential mortgage loans during 2018. See Note 7 "Servicing of Financial Assets" to the consolidated financial statements for more information. Investment Services Fee Income Investment services fee income represents income earned through investment advisory services, the primary revenue streams of which include sales of annuity and brokerage products. The increase in investment services fees during 2018 compared to 2017 was driven primarily by improved productivity as the result of hiring additional financial advisors. Bank-owned Life Insurance Bank-owned life insurance decreased in 2018 compared to 2017 primarily due to reduced claims benefits throughout the year, as well as valuation declines in the fourth quarter of 2018 related to market volatility. Securities Gains, net Net securities gains primarily result from the Company's asset/liability management process and the sale of certain securities held for employee benefit purposes. See Note 4 "Securities" to the consolidated financial statements for more information. Market Value Adjustments on Employee Benefit Assets Market value adjustments on employee benefit assets, both defined benefit and other, are the reflection of market value variations related to assets held for certain employee benefits. The adjustments reported as employee benefit assets - other are offset in salaries and benefits expense. Other Miscellaneous Income Other miscellaneous income includes net revenue from affordable housing, valuation adjustments to equity investments, fees from safe deposit boxes, check fees and other miscellaneous income. Net revenue from affordable housing includes actual gains and losses resulting from the sale of affordable housing investments, cash distributions from the investments and any related impairment charges. Other miscellaneous income increased in 2018 compared to 2017 primarily due to net gains associated with the sale of certain low income housing tax credit investments, increases in the value of equity investments, and decreases in net impairment charges related to certain operating lease assets. NON-INTEREST EXPENSE Table 6—Non-Interest Expense from Continuing Operations
<table><tr><td></td><td colspan="3">Year Ended December 31</td><td colspan="2">Change 2018 vs. 2017</td></tr><tr><td></td><td>2018</td><td>2017</td><td>2016</td><td>Amount</td><td>Percent</td></tr><tr><td></td><td colspan="5">(Dollars in millions)</td></tr><tr><td>Salaries and employee benefits</td><td>$1,947</td><td>$1,874</td><td>$1,842</td><td>$73</td><td>3.9%</td></tr><tr><td>Net occupancy expense</td><td>335</td><td>339</td><td>342</td><td>-4</td><td>-1.2%</td></tr><tr><td>Furniture and equipment expense</td><td>325</td><td>326</td><td>312</td><td>-1</td><td>-0.3%</td></tr><tr><td>Outside services</td><td>187</td><td>172</td><td>154</td><td>15</td><td>8.7%</td></tr><tr><td>Professional, legal and regulatory expenses</td><td>119</td><td>93</td><td>92</td><td>26</td><td>28.0%</td></tr><tr><td>Marketing</td><td>92</td><td>93</td><td>101</td><td>-1</td><td>-1.1%</td></tr><tr><td>FDIC insurance assessments</td><td>85</td><td>108</td><td>99</td><td>-23</td><td>-21.3%</td></tr><tr><td>Branch consolidation, property and equipment charges</td><td>11</td><td>22</td><td>58</td><td>-11</td><td>-50.0%</td></tr><tr><td>Visa class B shares expense</td><td>10</td><td>19</td><td>15</td><td>-9</td><td>-47.4%</td></tr><tr><td>Provision (credit) for unfunded credit losses</td><td>-2</td><td>-16</td><td>17</td><td>14</td><td>-87.5%</td></tr><tr><td>Loss on early extinguishment of debt</td><td>—</td><td>—</td><td>14</td><td>—</td><td>NM</td></tr><tr><td>Other miscellaneous expenses</td><td>461</td><td>461</td><td>437</td><td>—</td><td>—%</td></tr><tr><td></td><td>$3,570</td><td>$3,491</td><td>$3,483</td><td>$79</td><td>2.3%</td></tr></table>
unrealized gains and losses on cash flow hedges, unrealized gains and losses on available-for-sale securities and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions. Treasury Stock – We account for repurchases of common stock under the cost method and present treasury stock as a reduction of stockholders’ equity. We reissue common stock held in treasury only for limited purposes. Noncontrolling Interest – In 2011, we made an investment in a company in which we acquired a controlling financial interest, but not 100 percent of the equity. In 2013, we purchased additional shares of the company from the minority shareholders. Further information related to the noncontrolling interests of that investment has not been provided as it is not significant to our consolidated financial statements. Accounting Pronouncements – Effective January 1, 2013, we adopted the FASB’s Accounting Standard Updates (ASUs) requiring reporting of amounts reclassified out of accumulated other comprehensive income (OCI) and balance sheet offsetting between derivative assets and liabilities. These ASUs only change financial statement disclosure requirements and therefore do not impact our financial position, results of operations or cash flows. See Note 12 for disclosures relating to OCI. See Note 13 for disclosures relating to balance sheet offsetting. There are no other recently issued accounting pronouncements that we have not yet adopted that are expected to have a material effect on our financial position, results of operations or cash flows.3. SHARE-BASED COMPENSATION Our share-based payments primarily consist of stock options, restricted stock, restricted stock units (RSUs), and an employee stock purchase plan. Share-based compensation expense is as follows (in millions):
<table><tr><td>For the Years Ended December 31,</td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Stock options</td><td>$24.7</td><td>$32.4</td><td>$41.7</td></tr><tr><td>RSUs and other</td><td>23.8</td><td>22.6</td><td>18.8</td></tr><tr><td>Total expense, pre-tax</td><td>48.5</td><td>55.0</td><td>60.5</td></tr><tr><td>Tax benefit related to awards</td><td>-15.6</td><td>-16.6</td><td>-17.8</td></tr><tr><td>Total expense, net of tax</td><td>$32.9</td><td>$38.4</td><td>$42.7</td></tr></table>
Share-based compensation cost capitalized as part of inventory for the years ended December 31, 2013, 2012 and 2011 was $4.1 million, $6.1 million, and $8.8 million, respectively. As of December 31, 2013 and 2012, approximately $2.4 million and $3.3 million of capitalized costs remained in finished goods inventory. Stock Options We had two equity compensation plans in effect at December 31, 2013: the 2009 Stock Incentive Plan (2009 Plan) and the Stock Plan for Non-Employee Directors. The 2009 Plan succeeded the 2006 Stock Incentive Plan (2006 Plan) and the TeamShare Stock Option Plan (TeamShare Plan). No further awards have been granted under the 2006 Plan or under the TeamShare Plan since May 2009, and shares remaining available for grant under those plans have been merged into the 2009 Plan. Vested and unvested stock options and unvested restricted stock and RSUs previously granted under the 2006 Plan, the TeamShare Plan and another prior plan, the 2001 Stock Incentive Plan, remained outstanding as of December 31, 2013. We have reserved the maximum number of shares of common stock available for award under the terms of each of these plans. We have registered 57.9 million shares of common stock under these plans. The 2009 Plan provides for the grant of nonqualified stock options and incentive stock options, long-term performance awards in the form of performance shares or units, restricted stock, RSUs and stock appreciation rights. The Compensation and Management Development Committee of the Board of Directors determines the grant date for annual grants under our equity compensation plans. The date for annual grants under the 2009 Plan to our executive officers is expected to occur in the first quarter of each year following the earnings announcements for the previous quarter and full year. The Stock Plan for Non-Employee Directors provides for awards of stock options, restricted stock and RSUs to non-employee directors. It has been our practice to issue shares of common stock upon exercise of stock options from previously unissued shares, except in limited circumstances where they are issued from treasury stock. The total number of awards which may be granted in a given year and/or over the life of the plan under each of our equity compensation plans is limited. At December 31, 2013, an aggregate of 10.4 million shares were available for future grants and awards under these plans. Stock options granted to date under our plans generally vest over four years and generally have a maximum contractual life of 10 years. As established under our equity compensation plans, vesting may accelerate upon retirement after the first anniversary date of the award if certain criteria are met. We recognize expense related to stock options on a straight-line basis over the requisite service period, less awards expected to be forfeited using estimated forfeiture rates. Due to the accelerated retirement provisions, the requisite service period of our stock options range from one to four years. Stock options are granted with an exercise price equal to the market price of our common stock on the date of grant, except in limited circumstances where local law may dictate otherwise. |
-0.0928 | In the year with the most Management and financial advice fees, what is the growth rate of Management and financial advice fees? | PART II ITEM 7 Management’s Discussion and Analysis of Financial Condition and Results of Operations Year Ended December 31, 2014 Compared to the Year Ended December 31, 2013 Net Loss Segment net loss decreased $25,510 or 25%, to $74,731 for Twelve Months 2014 compared with a net loss of $100,241 for Twelve Months 2013. The decrease is primarily due to a $20,753 one-time tax benefi t related to the conversion of the Canadian branch operations of certain U. S. subsidiaries to foreign corporate entities, a $17,068 (after-tax) change in net realized gains on investments, lower employee-related costs and impact of expense reduction initiatives. These items were partially offset by a $19,400 (after-tax) loss on an asset held for sale. Total Revenues Total revenues increased $7,189 or 10%, to $79,282 for Twelve Months 2014 compared with $72,093 for Twelve Months 2013. The increase in revenues is mainly due to an $26,258 increase in net realized gains on investments partially offset by a decrease of $17,816 in amortization of deferred gain on disposal of businesses (“amortization of deferred gain”). The reduction in the amortization of deferred gain is related to a change in estimate for the recognition of a deferred gain associated with FFG that we previously sold through reinsurance. Total Benefi ts, Losses and Expenses Total benefi ts, losses and expenses decreased $19,600 or 9%, to $201,473 in Twelve Months 2014 compared with $221,073 in Twelve Months 2013. Interest expense declined $19,340 primarily due to repayment of the 2004 Senior Notes with an aggregate principal amount of $500,000 on February 18, 2014. Included in selling, underwriting and general expenses is a $21,526 loss on an asset held for sale. Excluding this item, Twelve Months 2014 had lower selling, underwriting and general expenses compared with Twelve Months 2013 primarily due to lower employee-related costs and impact of expense reduction initiatives. Year Ended December 31, 2013 Compared to the Year Ended December 31, 2012 Net Loss Segment net loss increased $45,183 or 82%, to $100,241 for Twelve Months 2013 compared with a net loss of $55,058 for Twelve Months 2012. The increase is primarily related to a $19,388 (after-tax) decrease in net realized gains on investments, increased employee-related and business acquisition-related expenses and additional expenses in areas targeted for growth. In addition, interest expense increased $11,329 (after-tax) due to the March 2013 issuance of senior notes with an aggregate principal amount of $700,000. Total Revenues Total revenues decreased $34,713 or 33%, to $72,093 for Twelve Months 2013 compared with $106,806 for Twelve Months 2012. The decrease in revenues is mainly due to decreased net realized gains on investments. Total Benefi ts, Losses and Expenses Total benefi ts, losses and expenses increased $50,405 or 30%, to $221,073 in Twelve Months 2013 compared with $170,668 in Twelve Months 2012. The increase is primarily due to increased employee-related and business acquisition-related expenses, additional expenses in areas targeted for growth and increased interest expense related to the March 2013 debt issuance mentioned above. In addition, policyholders benefi ts increased $5,949 attributable to increased claims payable accruals associated with discontinued businesses. Investments The Company had total investments of $14,131,452 and $14,244,015 as of December 31, 2014 and December 31, 2013, respectively. For more information on our investments see Note 5 to the Consolidated Financial Statements included elsewhere in this report. The following table shows the credit quality of our fi xed maturity securities portfolio as of the dates indicated:
<table><tr><td></td><td colspan="4"> As of</td></tr><tr><td> Fixed Maturity Securities by Credit Quality (Fair Value)</td><td colspan="2">December 31, 2014</td><td colspan="2"> December 31, 2013</td></tr><tr><td>Aaa / Aa / A</td><td>$7,314,208</td><td>65.0%</td><td>$7,214,256</td><td>63.9%</td></tr><tr><td>Baa</td><td>3,255,505</td><td>28.9%</td><td>3,316,035</td><td>29.4%</td></tr><tr><td>Ba</td><td>432,203</td><td>3.8%</td><td>523,175</td><td>4.6%</td></tr><tr><td>B and lower</td><td>261,258</td><td>2.3%</td><td>238,409</td><td>2.1%</td></tr><tr><td>Total</td><td>$11,263,174</td><td>100.0%</td><td>$11,291,875</td><td>100.0%</td></tr></table>
Annuities The following table presents the results of operations of our Annuities segment on an operating basis:
<table><tr><td></td><td colspan="2">Years Ended December 31,</td><td></td><td></td></tr><tr><td></td><td>2012</td><td>2011</td><td colspan="2">Change</td></tr><tr><td></td><td colspan="3">(in millions)</td><td></td></tr><tr><td>Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Management and financial advice fees</td><td>$648</td><td>$622</td><td>$26</td><td>4%</td></tr><tr><td>Distribution fees</td><td>317</td><td>312</td><td>5</td><td>2</td></tr><tr><td>Net investment income</td><td>1,132</td><td>1,279</td><td>-147</td><td>-11</td></tr><tr><td>Premiums</td><td>118</td><td>161</td><td>-43</td><td>-27</td></tr><tr><td>Other revenues</td><td>309</td><td>256</td><td>53</td><td>21</td></tr><tr><td>Total revenues</td><td>2,524</td><td>2,630</td><td>-106</td><td>-4</td></tr><tr><td>Banking and deposit interest expense</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total net revenues</td><td>2,524</td><td>2,630</td><td>-106</td><td>-4</td></tr><tr><td>Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>395</td><td>400</td><td>-5</td><td>-1</td></tr><tr><td>Interest credited to fixed accounts</td><td>688</td><td>714</td><td>-26</td><td>-4</td></tr><tr><td>Benefits, claims, losses and settlement expenses</td><td>419</td><td>405</td><td>14</td><td>3</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>229</td><td>264</td><td>-35</td><td>-13</td></tr><tr><td>Interest and debt expense</td><td>2</td><td>1</td><td>1</td><td>NM</td></tr><tr><td>General and administrative expense</td><td>224</td><td>221</td><td>3</td><td>1</td></tr><tr><td>Total expenses</td><td>1,957</td><td>2,005</td><td>-48</td><td>-2</td></tr><tr><td>Operating earnings</td><td>$567</td><td>$625</td><td>$-58</td><td>-9%</td></tr></table>
NM Not Meaningful. Our Annuities segment pretax operating income, which excludes net realized gains or losses and the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), decreased $58 million, or 9%, to $567 million for the year ended December 31, 2012 compared to $625 million for the prior year primarily due to a decline in net investment income and an unfavorable impact from unlocking and model changes, partially offset by the market impact on DAC and DSIC, lower interest credited to fixed accounts and higher fee revenues. Results for 2011 included $34 million of additional bond discount accretion investment income related to prior periods resulting from revisions to the accounting classification of certain structured securities, net of DAC and DSIC amortization. The impact of unlocking and model changes was a decrease to pretax operating income of $11 million in 2012 compared to an increase of $1 million in the prior year. The impact of unlocking and model changes for 2012 included a $43 million benefit, net of DAC and DSIC amortization, from an adjustment to the model which values the reserves related to living benefit guarantees primarily attributable to prior periods. This revision aligns the model to more accurately reflect best estimate assumptions for living benefit utilization going forward. The market impact on DAC and DSIC was a benefit of $29 million in 2012 compared to an expense of $10 million in the prior year. RiverSource variable annuity account balances increased 9% to $68.1 billion at December 31, 2012 compared to the prior year driven by market appreciation. Variable annuity net outflows of $457 million in 2012 reflected the closed book of annuities previously sold through third parties and $511 million of net inflows in the Ameriprise channel. RiverSource fixed annuity account balances declined 3% to $13.8 billion due to net outflows given the interest rate environment. Net Revenues Net revenues, which exclude net realized gains or losses, decreased $106 million, or 4%, to $2.5 billion for the year ended December 31, 2012 compared to $2.6 billion for the prior year primarily due to decreases in net investment income and premiums, partially offset by higher management fees and higher fees from variable annuity guarantees. Management and financial advice fees increased $26 million, or 4%, to $648 million for the year ended December 31, 2012 compared to $622 million for the prior year due to higher fees on variable annuities driven by higher separate account balances. Average variable annuities contract accumulation values increased $2.9 billion, or 5%, from the prior year due to market appreciation. Net investment income, which excludes net realized gains or losses, decreased $147 million, or 11%, to $1.1 billion for the year ended December 31, 2012 compared to $1.3 billion for the prior year due to a decrease in investment income on fixed maturities driven by low interest rates impacting both the variable and fixed businesses and $37 million of additional bond discount accretion investment income recognized in 2011 related to prior periods resulting from revisions to the accounting classification of certain structured securities. expects to have sufficient liquidity to finance its announced capital growth projects. ONEOK Partners believes that its available credit and cash and cash equivalents are adequate to meet liquidity requirements associated with commodity price volatility. See discussion under “Commodity Price Risk” in Part I, Item 7A, Quantitative and Qualitative Disclosures about Market Risk in our Annual Report, for information on ONEOK Partners’ hedging activities. Pension and Postretirement Benefit Plans - Information about our pension and postretirement benefits plans, including anticipated contributions, is included under Note N of the Notes to Consolidated Financial Statements in this Annual Report. During 2014, we made no contributions to our defined benefit pension plans, and $2.0 million in contributions to our postretirement benefit plans for both continuing and discontinued operations. The contributions to our postretirement benefit plans were attributable to the 2014 plan year. We expect to make $1.5 million in contributions to our defined benefit pension and postretirement plans in 2015. CASH FLOW ANALYSIS We use the indirect method to prepare our Consolidated Statements of Cash Flows. Under this method, we reconcile net income to cash flows provided by operating activities by adjusting net income for those items that impact net income but do not result in actual cash receipts or payments during the period and for operating cash items that do not impact net income. These reconciling items include depreciation and amortization, allowance for equity funds used during construction, gain or loss on sale of assets, equity earnings from investments, distributions received from unconsolidated affiliates, deferred income taxes, share-based compensation expense, other amounts, and changes in our assets and liabilities not classified as investing or financing activities. The following table sets forth the changes in cash flows by operating, investing and financing activities for the periods indicated:
<table><tr><td></td><td colspan="3">Years Ended December 31,</td></tr><tr><td></td><td>2014</td><td>2013</td><td>2012</td></tr><tr><td></td><td colspan="3">(Millions of dollars)</td></tr><tr><td>Total cash provided by (used in):</td><td></td><td></td><td></td></tr><tr><td>Operating activities</td><td>$1,285.6</td><td>$1,294.8</td><td>$984.0</td></tr><tr><td>Investing activities</td><td>-2,566.2</td><td>-2,642.0</td><td>-1,814.2</td></tr><tr><td>Financing activities</td><td>1,304.5</td><td>912.9</td><td>1,339.0</td></tr><tr><td>Change in cash and cash equivalents</td><td>23.9</td><td>-434.3</td><td>508.8</td></tr><tr><td>Change in cash and cash equivalents included in discontinued operations</td><td>3.3</td><td>2.9</td><td>11.5</td></tr><tr><td>Change in cash and cash equivalents from continuing operations</td><td>27.2</td><td>-431.4</td><td>520.3</td></tr><tr><td>Cash and cash equivalents at beginning of period</td><td>145.6</td><td>577.0</td><td>56.7</td></tr><tr><td>Cash and cash equivalents at end of period</td><td>$172.8</td><td>$145.6</td><td>$577.0</td></tr></table>
Operating Cash Flows - Operating cash flows are affected by earnings from our business activities. Changes in commodity prices and demand for our services or products, whether because of general economic conditions, changes in supply, changes in demand for the end products that are made with our products or increased competition from other service providers, could affect our earnings and operating cash flows.2014 vs. 2013 - Cash flows from operating activities, before changes in operating assets and liabilities, were approximately $1,227.3 million in 2014 compared with $1,302.0 million 2013. The decrease was due primarily to 2013 operating activities including a full year of operations of our former natural gas distribution business, which was separated from ONEOK on January 31, 2014, as discussed in Note B, offset partially by higher operating income from ONEOK Partners, as discussed in “Financial Results and Operating Information. ” The changes in operating assets and liabilities increased operating cash flows by approximately $58.3 million in 2014, compared with a decrease of $7.2 million in 2013. The increase was due primarily to the collection and payment of trade receivables and payables, resulting from the timing of cash collections from customers and paid to vendors and suppliers, which vary from period to period. This change is also due to the change in NGL volumes in storage. These increases were offset partially by higher settlements of liabilities associated with the wind down of our former energy services business and higher imbalances. REPUBLIC SERVICES, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Changes in the deferred tax valuation allowance for the years ended December 31, 2012, 2011 and 2010 are as follows:
<table><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Valuation allowance, beginning of year</td><td>$118.1</td><td>$120.1</td><td>$126.5</td></tr><tr><td>Additions charged to income</td><td>1.9</td><td>2.1</td><td>8.3</td></tr><tr><td>Usage</td><td>-3.2</td><td>-4.3</td><td>-10.4</td></tr><tr><td>Expirations of state net operating losses</td><td>-0.3</td><td>-0.3</td><td>-0.3</td></tr><tr><td>Other, net</td><td>8.3</td><td>0.5</td><td>-4.0</td></tr><tr><td>Valuation allowance, end of year</td><td>$124.8</td><td>$118.1</td><td>$120.1</td></tr></table>
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized after the initial recognition of the deferred tax asset. We also provide valuation allowances, as needed, to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. We have state net operating loss carryforwards with an estimated tax effect of $130.2 million available at December 31, 2012. These state net operating loss carryforwards expire at various times between 2013 and 2032. We believe that it is more likely than not that the benefit from certain state net operating loss carryforwards will not be realized. In recognition of this risk, at December 31, 2012, we have provided a valuation allowance of $113.5 million for certain state net operating loss carryforwards. At December 31, 2012, we also have provided a valuation allowance of $11.3 million for certain other deferred tax assets. Deferred income taxes have not been provided on the undistributed earnings of our Puerto Rican subsidiaries of approximately $40 million and $39 million as of December 31, 2012 and 2011, respectively, as such earnings are considered to be permanently invested in those subsidiaries. If such earnings were to be remitted to us as dividends, we would incur approximately $14 million of federal income taxes. We made income tax payments (net of refunds received) of approximately $185 million, $173 million and $418 million for 2012, 2011 and 2010, respectively. Income taxes paid in 2012 and 2011 reflect the favorable tax depreciation provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act) that was signed into law in December 2010. The Tax Relief Act included 100% bonus depreciation for property placed in service after September 8, 2010 and through December 31, 2011 (and for certain long-term construction projects to be placed in service in 2012) and 50% bonus depreciation for property placed in service in 2012 (and for certain long-term construction projects to be placed in service in 2013). Income taxes paid in 2010 includes $111 million related to the settlement of certain tax liabilities regarding BFI risk management companies. We and our subsidiaries are subject to income tax in the U. S. and Puerto Rico, as well as income tax in multiple state jurisdictions. Our compliance with income tax rules and regulations is periodically audited by tax authorities. These authorities may challenge the positions taken in our tax filings. Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions for our estimate of the final outcome of the examinations. |
0.3 | What was the average value of the Cost of goods sold in the years where External net sales is positive? | Supplementary Information on Oil and Gas Producing Activities (Unaudited) CONTINUED Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
<table><tr><td><i>(In millions)</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Sales and transfers of oil and gas produced, net of production, transportation and administrative costs</td><td>$-5,312</td><td>$-3,754</td><td>$-2,689</td></tr><tr><td>Net changes in prices and production, transportation and administrative costs related to future production</td><td>-1,342</td><td>6,648</td><td>771</td></tr><tr><td>Extensions, discoveries and improved recovery, less related costs</td><td>1,290</td><td>700</td><td>1,349</td></tr><tr><td>Development costs incurred during the period</td><td>1,251</td><td>1,030</td><td>609</td></tr><tr><td>Changes in estimated future development costs</td><td>-527</td><td>-552</td><td>-628</td></tr><tr><td>Revisions of previous quantity estimates</td><td>1,319</td><td>820</td><td>948</td></tr><tr><td>Net changes in purchases and sales of minerals in place</td><td>30</td><td>4,557</td><td>33</td></tr><tr><td>Accretion of discount</td><td>1,882</td><td>1,124</td><td>757</td></tr><tr><td>Net change in income taxes</td><td>-660</td><td>-6,694</td><td>-627</td></tr><tr><td>Timing and other</td><td>-14</td><td>307</td><td>97</td></tr><tr><td>Net change for the year</td><td>-2,083</td><td>4,186</td><td>620</td></tr><tr><td>Beginning of year</td><td>10,601</td><td>6,415</td><td>5,795</td></tr><tr><td>End of year</td><td>$8,518</td><td>$10,601</td><td>$6,415</td></tr><tr><td>Net change for the year from discontinued operations</td><td>$-216</td><td>$162</td><td>$-152</td></tr></table>
Information Available on the Company’s Web Site Additional information regarding Snap-on and its products is available on the company’s web site at www. snapon. com. Snap-on is not including the information contained on its web site as a part of, or incorporating it by reference into, this Annual Report on Form 10-K. Snap-on’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Definitive Proxy Statements on Schedule 14A and Current Reports on Form 8-K, as well as any amendments to those reports, are made available to the public at no charge, other than an investor’s own internet access charges, through the Investor Information section of the company’s web site at www. snapon. com. Snap-on makes such material available on its web site as soon as reasonably practicable after it electronically files such material with, or furnishes it to, the Securities and Exchange Commission (“SEC”). Copies of any materials the company files with the SEC can also be obtained free of charge through the SEC’s web site at www. sec. gov. The SEC’s Public Reference Room can be contacted at 100 F Street, N. E. , Washington, D. C. 20549, or by calling 1-800-732-0330. In addition, Snap-on’s (i) charters for the Audit, Corporate Governance and Nominating, and Organization and Executive Compensation Committees of the company’s Board of Directors; (ii) Corporate Governance Guidelines; and (iii) Code of Business Conduct and Ethics are available on Snap-on’s web site. Snap-on will also post any amendments to these documents, or information about any waivers granted to directors or executive officers with respect to the Code of Business Conduct and Ethics, on the company’s web site at www. snapon. com. Products and Services Tools, Diagnostics and Repair Information, and Equipment Snap-on offers a broad line of products and complementary services that are grouped into three product categories: (i) tools; (ii) diagnostics and repair information; and (iii) equipment. Further product line information is not presented as it is not practicable to do so. The following table shows the consolidated net sales of these product categories for the last three years:
<table><tr><td></td><td colspan="3">Net Sales</td></tr><tr><td><i>(Amounts in millions)</i></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Product Category:</td><td></td><td></td><td></td></tr><tr><td>Tools</td><td>$1,729.4</td><td>$1,667.3</td><td>$1,545.1</td></tr><tr><td>Diagnostics and repair information</td><td>619.8</td><td>613.7</td><td>563.3</td></tr><tr><td>Equipment</td><td>588.7</td><td>573.2</td><td>510.8</td></tr><tr><td></td><td>$2,937.9</td><td>$2,854.2</td><td>$2,619.2</td></tr></table>
The tools product category includes hand tools, power tools and tool storage products. Hand tools include wrenches, sockets, ratchet wrenches, pliers, screwdrivers, punches and chisels, saws and cutting tools, pruning tools, torque measuring instruments and other similar products. Power tools include cordless (battery), pneumatic (air), hydraulic, and corded (electric) tools, such as impact wrenches, ratchets, chisels, drills, sanders, polishers and similar products. Tool storage includes tool chests, roll cabinets, tool control systems and other similar products. The majority of products are manufactured by Snap-on and, in completing the product offering, other items are purchased from external manufacturers. The diagnostics and repair information product category includes handheld and PC-based diagnostic products, service and repair information products, diagnostic software solutions, electronic parts catalogs, business management systems and services, point-of-sale systems, integrated systems for vehicle service shops, OEM purchasing facilitation services, and warranty management systems and analytics to help OEM dealership service and repair shops manage and track performance. The equipment product category includes solutions for the diagnosis and service of vehicles and industrial equipment. Products include wheel alignment equipment, wheel balancers, tire changers, vehicle lifts, test lane systems, collision repair equipment, air conditioning service equipment, brake service equipment, fluid exchange equipment, transmission troubleshooting equipment, safety testing equipment, battery chargers and hoists. Snap-on supports the sale of its diagnostics and vehicle service shop equipment by offering training programs as well as after sales support for its customers, primarily focusing on the technologies and the application of specific products developed and marketed by Snap-on. Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued) Segment gross profit of $105.0 million in the fourth quarter of 2012 decreased $1.4 million from 2011 levels. Gross margin of 38.1% in the quarter improved 210 basis points from 36.0% last year primarily due to lower restructuring costs as well as savings from ongoing RCI initiatives, particularly in Europe. No restructuring costs were incurred in the fourth quarter of 2012; gross profit in the fourth quarter of 2011 included $2.5 million of restructuring costs. Segment operating expenses of $73.1 million in the fourth quarter of 2012 decreased $0.3 million from 2011 levels. The operating expense margin of 26.5% in the quarter increased 170 basis points from 24.8% last year primarily as a result of the lower sales. As a result of these factors, segment operating earnings of $31.9 million in the fourth quarter of 2012, including $1.2 million of favorable foreign currency effects, decreased $1.1 million, or 3.3%, from 2011 levels. Operating margin for the Commercial & Industrial Group of 11.6% in the fourth quarter of 2012 improved 40 basis points from 11.2% last year. Snap-on Tools Group
<table><tr><td></td><td colspan="4">Fourth Quarter</td><td colspan="2"></td></tr><tr><td><i>(Amounts in millions)</i></td><td colspan="2">2012</td><td colspan="2">2011</td><td colspan="2">Change</td></tr><tr><td>Segment net sales</td><td>$321.6</td><td>100.0%</td><td>$292.8</td><td>100.0%</td><td>$28.8</td><td>9.8%</td></tr><tr><td>Cost of goods sold</td><td>-185.8</td><td>-57.8%</td><td>-168.9</td><td>-57.7%</td><td>-16.9</td><td>-10.0%</td></tr><tr><td>Gross profit</td><td>135.8</td><td>42.2%</td><td>123.9</td><td>42.3%</td><td>11.9</td><td>9.6%</td></tr><tr><td>Operating expenses</td><td>-90.2</td><td>-28.0%</td><td>-84.3</td><td>-28.8%</td><td>-5.9</td><td>-7.0%</td></tr><tr><td>Segment operating earnings</td><td>$45.6</td><td>14.2%</td><td>$39.6</td><td>13.5%</td><td>$6.0</td><td>15.2%</td></tr></table>
Segment net sales of $321.6 million in the fourth quarter of 2012 increased $28.8 million, or 9.8%, from 2011 levels. Excluding $1.4 million of favorable foreign currency translation, organic sales increased $27.4 million, or 9.3%, reflecting high single-digit sales increases across both the company’s U. S. and international franchise operations. Segment gross profit of $135.8 million in the fourth quarter of 2012 increased $11.9 million from 2011 levels. Gross margin of 42.2% in the quarter compared with 42.3% last year. No restructuring costs were incurred in the fourth quarter of 2012; gross profit in the fourth quarter of 2011 included $0.3 million of restructuring costs. Segment operating expenses of $90.2 million in the fourth quarter of 2012 increased $5.9 million from 2011 levels primarily due to higher volume-related and other expenses. The operating expense margin of 28.0% in the quarter improved 80 basis points from 28.8% last year primarily due to benefits from sales volume leverage. As a result of these factors, segment operating earnings of $45.6 million in the fourth quarter of 2012, including $1.2 million of unfavorable foreign currency effects, increased $6.0 million, or 15.2%, from 2011 levels. Operating margin for the Snap-on Tools Group of 14.2% in the fourth quarter of 2012 increased 70 basis points from 13.5% last year. Repair Systems & Information Group
<table><tr><td></td><td colspan="4">Fourth Quarter</td><td colspan="2"></td></tr><tr><td><i>(Amounts in millions)</i></td><td colspan="2">2012</td><td colspan="2">2011</td><td colspan="2">Change</td></tr><tr><td>External net sales</td><td>$194.8</td><td>80.6%</td><td>$193.0</td><td>81.6%</td><td>$1.8</td><td>0.9%</td></tr><tr><td>Intersegment net sales</td><td>46.8</td><td>19.4%</td><td>43.5</td><td>18.4%</td><td>3.3</td><td>7.6%</td></tr><tr><td>Segment net sales</td><td>241.6</td><td>100.0%</td><td>236.5</td><td>100.0%</td><td>5.1</td><td>2.2%</td></tr><tr><td>Cost of goods sold</td><td>-130.4</td><td>-54.0%</td><td>-131.0</td><td>-55.4%</td><td>0.6</td><td>0.5%</td></tr><tr><td>Gross profit</td><td>111.2</td><td>46.0%</td><td>105.5</td><td>44.6%</td><td>5.7</td><td>5.4%</td></tr><tr><td>Operating expenses</td><td>-55.8</td><td>-23.1%</td><td>-56.3</td><td>-23.8%</td><td>0.5</td><td>0.9%</td></tr><tr><td>Segment operating earnings</td><td>$55.4</td><td>22.9%</td><td>$49.2</td><td>20.8%</td><td>$6.2</td><td>12.6%</td></tr></table>
Segment net sales of $241.6 million in the fourth quarter of 2012 increased $5.1 million, or 2.2%, from 2011 levels. Excluding $1.6 million of unfavorable foreign currency translation, organic sales increased $6.7 million, or 2.9%, including low single-digit gains in both sales of diagnostics and repair information products to repair shop owners and managers and sales to OEM dealerships. |
15,226.5 | How much is the Total expenses for Corporate Benefit Funding less than the 50% of the sum of all Total expenses? (in million) | Stock Performance Graph The following graph compares the most recent five-year performance of the Company’s common stock with (1) the Standard & Poor’s (S&P) 500? Index, (2) the S&P 500? Materials Index, a group of 25 companies categorized by Standard & Poor’s as active in the “materials” market sector, (3) the S&P Aerospace & Defense Select Industry Index, a group of 33 companies categorized by Standard & Poor’s as active in the “aerospace & defense” industry and (4) the S&P 500? Industrials Index, a group of 69 companies categorized by Standard & Poor’s as active in the “industrials” market sector. The graph assumes, in each case, an initial investment of $100 on December 31, 2013, and the reinvestment of dividends. Historical prices prior to the separation of Alcoa Corporation from the Company on November 1, 2016, have been adjusted to reflect the value of the Separation transaction. The graph, table and related information shall not be deemed to be “filed” with the SEC, nor shall such information be incorporated by reference into future filings under the Securities Act of 1933 or Securities Exchange Act of 1934, each as amended, except to the extent that the Company specifically incorporates it by reference into such filing. Please note that the Company intends to replace the S&P 500? Materials Index with the S&P Aerospace & Defense Select Industry Index and the S&P 500? Industrials Index in subsequent stock performance graphs. We believe that the companies and industries represented in the S&P Aerospace & Defense Select Industry Index and the S&P 500? Industrials Index better reflect the markets in which the Company currently participates. All three indices are represented in the graph below.
<table><tr><td>As of December 31,</td><td>2013</td><td>2014</td><td>2015</td><td>2016</td><td>2017</td><td>2018</td></tr><tr><td>Arconic Inc.</td><td>$100</td><td>$149.83</td><td>$94.62</td><td>$80.22</td><td>$119.02</td><td>$74.47</td></tr><tr><td>S&P 500<sup>®</sup>Index</td><td>100</td><td>113.69</td><td>115.26</td><td>129.05</td><td>157.22</td><td>150.33</td></tr><tr><td>S&P 500<sup>®</sup>Materials Index</td><td>100</td><td>106.91</td><td>97.95</td><td>114.30</td><td>141.55</td><td>120.74</td></tr><tr><td>S&P Aerospace & Defense Select Industry Index</td><td>100</td><td>111.43</td><td>117.49</td><td>139.70</td><td>197.50</td><td>181.56</td></tr><tr><td>S&P 500<sup>®</sup>Industrials Index</td><td>100</td><td>109.83</td><td>107.04</td><td>127.23</td><td>153.99</td><td>133.53</td></tr></table>
Copyright?2019 Standard & Poor's, a division of S&P Global. All rights reserved MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) Commitments Leases In accordance with industry practice, certain of the Company’s income from lease agreements with retail tenants are contingent upon the level of the tenants’ revenues. Additionally, the Company, as lessee, has entered into various lease and sublease agreements for office space, information technology and other equipment. Future minimum rental and sublease income, and minimum gross rental payments relating to these lease agreements are as follows:
<table><tr><td></td><td> Rental Income</td><td> Sublease Income</td><td> Gross Rental Payments</td></tr><tr><td></td><td colspan="3"> (In millions)</td></tr><tr><td>2010</td><td>$415</td><td>$15</td><td>$287</td></tr><tr><td>2011</td><td>$357</td><td>$17</td><td>$237</td></tr><tr><td>2012</td><td>$288</td><td>$16</td><td>$190</td></tr><tr><td>2013</td><td>$253</td><td>$15</td><td>$169</td></tr><tr><td>2014</td><td>$221</td><td>$9</td><td>$119</td></tr><tr><td>Thereafter</td><td>$723</td><td>$44</td><td>$994</td></tr></table>
During 2008, the Company moved certain of its operations in New York from Long Island City to New York City. As a result of this movement of operations and current market conditions, which precluded the Company’s immediate and complete sublet of all unused space in both Long Island City and New York City, the Company incurred a lease impairment charge of $38 million which is included within other expenses in Banking, Corporate & Other. The impairment charge was determined based upon the present value of the gross rental payments less sublease income discounted at a risk-adjusted rate over the remaining lease terms which range from 15-20 years. The Company has made assumptions with respect to the timing and amount of future sublease income in the determination of this impairment charge. During 2009, pending sublease deals were impacted by the further decline of market conditions, which resulted in an additional lease impairment charge of $52 million. See Note 19 for discussion of $28 million of such charges related to restructuring. Additional impairment charges could be incurred should market conditions deteriorate further or last for a period significantly longer than anticipated. Commitments to Fund Partnership Investments The Company makes commitments to fund partnership investments in the normal course of business. The amounts of these unfunded commitments were $4.1 billion and $4.5 billion at December 31, 2009 and 2008, respectively. The Company anticipates that these amounts will be invested in partnerships over the next five years. Mortgage Loan Commitments The Company has issued interest rate lock commitments on certain residential mortgage loan applications totaling $2.7 billion and $8.0 billion at December 31, 2009 and 2008, respectively. The Company intends to sell the majority of these originated residential mortgage loans. Interest rate lock commitments to fund mortgage loans that will be held-for-sale are considered derivatives and their estimated fair value and notional amounts are included within interest rate forwards in Note 4. The Company also commits to lend funds under certain other mortgage loan commitments that will be held-for-investment. The amounts of these mortgage loan commitments were $2.2 billion and $2.7 billion at December 31, 2009 and 2008, respectively. Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to lend funds under bank credit facilities, bridge loans and private corporate bond investments. The amounts of these unfunded commitments were $1.3 billion and $1.0 billion at December 31, 2009 and 2008, respectively. Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties pursuant to which it may be required to make payments now or in the future. In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company. In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits. These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation. In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $1.6 billion, while in other cases such limitations are not specified or applicable. Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future. Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments. In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws. Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Company’s interests. Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future. MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) Options. Additional shares carried forward from the Stock Incentive Plan and available for issuance under the 2005 Stock Plan were 13,018,939 at December 31, 2009. There were no shares carried forward from the 2000 Directors Stock Plan. Each share issued under the 2005 Stock Plan in connection with a Stock Option or Stock Appreciation Right reduces the number of shares remaining for issuance under that plan by one, and each share issued under the 2005 Stock Plan in connection with awards other than Stock Options or Stock Appreciation Rights reduces the number of shares remaining for issuance under that plan by 1.179 shares. The number of shares reserved for issuance under the 2005 Directors Stock Plan are 2,000,000. At December 31, 2009, the aggregate number of shares remaining available for issuance pursuant to the 2005 Stock Plan and the 2005 Directors Stock Plan were 47,903,044 and 1,838,594, respectively. Stock Option exercises and other stock-based awards to employees settled in shares are satisfied through the issuance of shares held in treasury by the Company. Under the current authorized share repurchase program, as described previously, sufficient treasury shares exist to satisfy foreseeable obligations under the Incentive Plans. Compensation expense related to awards under the Incentive Plans is recognized based on the number of awards expected to vest, which represents the awards granted less expected forfeitures over the life of the award, as estimated at the date of grant. Unless a material deviation from the assumed rate is observed during the term in which the awards are expensed, any adjustment necessary to reflect differences in actual experience is recognized in the period the award becomes payable or exercisable. Compensation expense of $69 million, $123 million and $146 million, and income tax benefits of $24 million, $43 million and $51 million, related to the Incentive Plans was recognized for the years ended December 31, 2009, 2008 and 2007, respectively. Compensation expense is principally related to the issuance of Stock Options, Performance Shares and Restricted Stock Units. The majority of the awards granted by the Holding Company are made in the first quarter of each year. Stock Options All Stock Options granted had an exercise price equal to the closing price of the Holding Company’s common stock as reported on the New York Stock Exchange on the date of grant, and have a maximum term of ten years. Certain Stock Options granted under the Stock Incentive Plan and the 2005 Stock Plan have or will become exercisable over a three year period commencing with the date of grant, while other Stock Options have or will become exercisable three years after the date of grant. Stock Options issued under the 2000 Directors Stock Plan were exercisable immediately. The date at which a Stock Option issued under the 2005 Directors Stock Plan becomes exercisable would be determined at the time such Stock Option is granted. A summary of the activity related to Stock Options for the year ended December 31, 2009 is presented below. The aggregate intrinsic value was computed using the closing share price on December 31, 2009 of $35.35 and December 31, 2008 of $34.86, as applicable.
<table><tr><td></td><td>Shares Under</td><td> Weighted Average </td><td rowspan="2"> Weighted Average Remaining Contractual Term (Years)</td><td rowspan="2"> Aggregate Intrinsic Value (In millions)</td></tr><tr><td></td><td>Option</td><td> Exercise Price</td></tr><tr><td>Outstanding at January 1, 2009</td><td>26,158,275</td><td>$41.73</td><td>5.73</td><td>$—</td></tr><tr><td>Granted</td><td>5,450,662</td><td>$23.61</td><td></td><td></td></tr><tr><td>Exercised</td><td>-254,576</td><td>$30.23</td><td></td><td></td></tr><tr><td>Cancelled/Expired</td><td>-794,655</td><td>$39.79</td><td></td><td></td></tr><tr><td>Forfeited</td><td>-407,301</td><td>$48.72</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2009</td><td>30,152,405</td><td>$38.51</td><td>5.50</td><td>$—</td></tr><tr><td>Aggregate number of stock options expected to vest at December 31, 2009</td><td>29,552,636</td><td>$38.58</td><td>5.43</td><td>$—</td></tr><tr><td>Exercisable at December 31, 2009</td><td>21,651,876</td><td>$38.94</td><td>4.28</td><td>$—</td></tr></table>
The fair value of Stock Options is estimated on the date of grant using a binomial lattice model. Significant assumptions used in the Company’s binomial lattice model, which are further described below, include: expected volatility of the price of the Holding Company’s common stock; risk-free rate of return; expected dividend yield on the Holding Company’s common stock; exercise multiple; and the postvesting termination rate. Expected volatility is based upon an analysis of historical prices of the Holding Company’s common stock and call options on that common stock traded on the open market. The Company uses a weighted-average of the implied volatility for publicly-traded call options with the longest remaining maturity nearest to the money as of each valuation date and the historical volatility, calculated using monthly closing prices of the Holding Company’s common stock. The Company chose a monthly measurement interval for historical volatility as it believes this better depicts the nature of employee option exercise decisions being based on longer-term trends in the price of the underlying shares rather than on daily price movements. The binomial lattice model used by the Company incorporates different risk-free rates based on the imputed forward rates for U. S. Treasury Strips for each year over the contractual term of the option. The table below presents the full range of rates that were used for options granted during the respective periods. Dividend yield is determined based on historical dividend distributions compared to the price of the underlying common stock as of the valuation date and held constant over the life of the Stock Option. Reconciliation of GAAP revenues to operating revenues and GAAP expenses to operating expenses Year Ended December 31, 2009
<table><tr><td></td><td>Insurance Products</td><td>Retirement Products</td><td>Corporate Benefit Funding</td><td>Auto & Home</td><td>International</td><td>Banking Corporate & Other</td><td>Total</td></tr><tr><td></td><td></td><td></td><td colspan="2">(In millions)</td><td></td><td></td><td></td></tr><tr><td>Total revenues</td><td>$23,483</td><td>$3,543</td><td>$5,669</td><td>$3,113</td><td>$4,383</td><td>$867</td><td>$41,058</td></tr><tr><td>Less: Net investment gains (losses)</td><td>-2,258</td><td>-1,606</td><td>-2,260</td><td>-2</td><td>-903</td><td>-743</td><td>-7,772</td></tr><tr><td>Less: Adjustments related to net investment gains (losses)</td><td>-27</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-27</td></tr><tr><td>Less: Other adjustments to revenues</td><td>-74</td><td>-217</td><td>187</td><td>—</td><td>-169</td><td>22</td><td>-251</td></tr><tr><td>Total operating revenues</td><td>$25,842</td><td>$5,366</td><td>$7,742</td><td>$3,115</td><td>$5,455</td><td>$1,588</td><td>$49,108</td></tr><tr><td>Total expenses</td><td>$24,165</td><td>$4,108</td><td>$6,982</td><td>$2,697</td><td>$4,868</td><td>$2,571</td><td>$45,391</td></tr><tr><td>Less: Adjustments related to net investment gains (losses)</td><td>39</td><td>-739</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-700</td></tr><tr><td>Less: Other adjustments to expenses</td><td>-1</td><td>—</td><td>64</td><td>—</td><td>37</td><td>38</td><td>138</td></tr><tr><td>Total operating expenses</td><td>$24,127</td><td>$4,847</td><td>$6,918</td><td>$2,697</td><td>$4,831</td><td>$2,533</td><td>$45,953</td></tr></table>
Year Ended December 31, 2008
<table><tr><td></td><td>Insurance Products</td><td>Retirement Products</td><td>Corporate Benefit Funding</td><td>Auto & Home</td><td> International</td><td>Banking Corporate & Other</td><td>Total</td></tr><tr><td></td><td colspan="7">(In millions)</td></tr><tr><td>Total revenues</td><td>$26,754</td><td>$5,630</td><td>$7,559</td><td>$3,061</td><td>$6,001</td><td>$1,979</td><td>$50,984</td></tr><tr><td>Less: Net investment gains (losses)</td><td>1,558</td><td>901</td><td>-1,629</td><td>-134</td><td>169</td><td>947</td><td>1,812</td></tr><tr><td>Less: Adjustments related to net investment gains (losses)</td><td>18</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>18</td></tr><tr><td>Less: Other adjustments to revenues</td><td>-1</td><td>-35</td><td>45</td><td>—</td><td>69</td><td>13</td><td>91</td></tr><tr><td>Total operating revenues</td><td>$25,179</td><td>$4,764</td><td>$9,143</td><td>$3,195</td><td>$5,763</td><td>$1,019</td><td>$49,063</td></tr><tr><td>Total expenses</td><td>$23,418</td><td>$5,049</td><td>$7,735</td><td>$2,728</td><td>$5,044</td><td>$1,949</td><td>$45,923</td></tr><tr><td>Less: Adjustments related to net investment gains (losses)</td><td>262</td><td>577</td><td>—</td><td>—</td><td>—</td><td>—</td><td>839</td></tr><tr><td>Less: Other adjustments to expenses</td><td>-52</td><td>—</td><td>-29</td><td>—</td><td>17</td><td>-4</td><td>-68</td></tr><tr><td>Total operating expenses</td><td>$23,208</td><td>$4,472</td><td>$7,764</td><td>$2,728</td><td>$5,027</td><td>$1,953</td><td>$45,152</td></tr></table>
Less: Adjustments related to net investment gains The volatile market conditions that began in 2008 and continued into 2009 impacted several key components of our operating earnings available to common shareholders including net investment income, hedging costs, and certain market sensitive expenses. The markets also positively impacted our operating earnings available to common shareholders as conditions began to improve during 2009, resulting in lower DAC and DSI amortization. A $722 million decline in net investment income was the result of decreasing yields, including the effects of our higher quality, more liquid, but lower yielding investment position in response to the extraordinary market conditions. The impact of declining yields caused a $1.6 billion decrease in net investment income, which was partially offset by an increase of $846 million due to growth in average invested assets calculated excluding unrealized gains and losses. The decrease in yields resulted from the disruption and dislocation in the global financial markets experienced in 2008, which continued, but moderated, in 2009. The adverse yield impact was concentrated in the following four invested asset classes: ? Fixed maturity securities — primarily due to lower yields on floating rate securities from declines in short-term interest rates and an increased allocation to lower yielding, higher quality, U. S. Treasury, agency and government guaranteed securities, to increase liquidity in response to the extraordinary market conditions, as well as decreased income on our securities lending program, primarily due to the smaller size of the program in the current year. These adverse impacts were offset slightly as conditions improved late in 2009 and we began to reallocate our portfolio to higher-yielding assets; ? Real estate joint ventures — primarily due to declining property valuations on certain investment funds that carry their real estate at estimated fair value and operating losses incurred on properties that were developed for sale by development joint ventures; ? Cash, cash equivalents and short-term investments — primarily due to declines in short-term interest rates; and ? Mortgage loans — primarily due to lower prepayments on commercial mortgage loans and lower yields on variable rate loans reflecting declines in short-term interest rates. Equity markets experienced some recovery in 2009, which led to improved yields on other limited partnership interests. As many of our products are interest spread-based, the lower net investment income was significantly offset by lower interest credited expense on our investment and insurance products. The financial market conditions also resulted in a $348 million increase in net guaranteed annuity benefit costs in our Retirement Products segment, as increased hedging losses were only partially offset by lower guaranteed benefit costs. The key driver of the increase in other expenses stemmed from the impact of market conditions on certain expenses, primarily pension and postretirement benefit costs, reinsurance expenses and letter of credit fees. These increases coupled with higher variable costs, such as |
539 | how much of total minimum lease payments ( in millions ) are not due to assets under construction? | Summary of Cost of Net Revenues The following table summarizes changes in cost of net revenues:
<table><tr><td></td><td colspan="3">Year Ended December 31,</td><td colspan="2">Change from 2008 to 2009</td><td colspan="2">Change from 2009 to 2010</td></tr><tr><td></td><td>2008</td><td>2009</td><td>2010</td><td>in Dollars</td><td>in %</td><td>in Dollars</td><td>in %</td></tr><tr><td></td><td colspan="7">(In thousands, except percentages)</td></tr><tr><td>Cost of net revenues:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Marketplaces</td><td>$907,121</td><td>$968,266</td><td>$1,071,499</td><td>$61,145</td><td>7%</td><td>$103,233</td><td>11%</td></tr><tr><td>As a percentage of total Marketplaces net revenues</td><td>16.2%</td><td>18.2%</td><td>18.7%</td><td></td><td></td><td></td><td></td></tr><tr><td>Payments</td><td>1,036,746</td><td>1,220,619</td><td>1,493,168</td><td>183,873</td><td>18%</td><td>272,549</td><td>22%</td></tr><tr><td>As a percentage of total Payments net revenues</td><td>43.1%</td><td>43.7%</td><td>43.5%</td><td></td><td></td><td></td><td></td></tr><tr><td>Communications</td><td>284,202</td><td>290,877</td><td>—</td><td>6,675</td><td>2%</td><td>-290,877</td><td>—</td></tr><tr><td>As a percentage of total Communications net revenues</td><td>51.6%</td><td>46.9%</td><td>—</td><td></td><td></td><td></td><td></td></tr><tr><td>Total cost of net revenues</td><td>$2,228,069</td><td>$2,479,762</td><td>$2,564,667</td><td>$251,693</td><td>11%</td><td>$84,905</td><td>3%</td></tr><tr><td>As a percentage of net revenues</td><td>26.1%</td><td>28.4%</td><td>28.0%</td><td></td><td></td><td></td><td></td></tr></table>
Cost of Net Revenues Cost of net revenues consists primarily of costs associated with payment processing, customer support and site operations and Skype telecommunications (through November 2009). Significant components of these costs include bank transaction fees, credit card interchange and assessment fees, interest expense on indebtedness incurred to finance the purchase of consumer loans receivable by Bill Me Later, employee compensation, contractor costs, facilities costs, depreciation of equipment and amortization expense. Marketplaces Marketplaces cost of net revenues increased $103.2 million, or 11%, in 2010 compared to 2009. The increase during 2010 was due primarily to the inclusion of a full year of costs attributable to Gmarket and increased site operation costs. Marketplaces cost of net revenues as a percentage of Marketplaces net revenues increased slightly in 2010 compared to 2009 due primarily to the addition of Gmarket, the settlement of a lawsuit and the establishment of a reserve related to certain indirect tax positions (recorded as a reduction in revenue). Marketplaces cost of net revenues increased $61.1 million, or 7%, in 2009 compared to 2008. The increase during 2009 was due primarily to the inclusion of costs attributable to Gmarket and Den Bl? Avis and BilBasen, partially offset by a decrease in customer support and site operations costs associated with our restructuring activities. Marketplaces cost of net revenues increased as a percentage of Marketplaces net revenues during 2009 compared to 2008 due primarily to the impact of foreign currency movements on revenues, pricing initiatives (which are recorded as a reduction in revenue) and faster growth in our lower margin Marketplaces businesses. Payments Payments cost of net revenues increased $272.5 million, or 22%, in 2010 compared to 2009. The increase in cost of net revenues was primarily due to the impact from our growth in net TPV. Payments cost of net revenues as a percentage of Payments net revenues decreased slightly in 2010 compared to 2009 due primarily to improved leverage of our customer support infrastructure and existing site operations. expect that these credit rating agencies will continue to monitor developments in our planned separation of PayPal, including the capital structure for each company after separation, which could result in additional downgrades. Our borrowing costs depend, in part, on our credit ratings and because downgrades would likely increase our borrowing costs we disclose these ratings to enhance the understanding of the effects of our ratings on our costs of funds. In addition, to assist PayPal in our planned separation we are currently working with credit rating agencies to obtain separate credit ratings for PayPal and we believe that immediately following separation both eBay and PayPal will be rated investment grade. Commitments and Contingencies As of December 31, 2014 , approximately $20.2 billion of unused credit was available to PayPal Credit accountholders. While this amount represents the total unused credit available, we have not experienced, and do not anticipate, that all of our PayPal Credit accountholders will access their entire available credit at any given point in time. In addition, the individual lines of credit that make up this unused credit are subject to periodic review and termination by the chartered financial institutions that are the issuer of PayPal Credit products based on, among other things, account usage and customer creditworthiness. When a consumer makes a purchase using a PayPal Credit products, the chartered financial institution extends credit to the consumer, funds the extension of credit at the point of sale and advances funds to the merchant. We subsequently purchase the consumer receivables related to the consumer loans and as result of that purchase, bear the risk of loss in the event of loan defaults. However, we subsequently sell a participation interest in the entire pool of consumer loans to the chartered financial institution that extended the consumer loans. Although the chartered financial institution continues to own the customer accounts, we own and bear the risk of loss on the related consumer receivables, less the participation interest held by the chartered financial institution, and PayPal is responsible for all servicing functions related to the customer account balances. As of December 31, 2014 , the total outstanding principal balance of this pool of consumer loans was $3.7 billion , of which the chartered financial institution owns a participation interest of $163 million , or 4.4% of the total outstanding balance of consumer receivables at that date. We have certain fixed contractual obligations and commitments that include future estimated payments for general operating purposes. Changes in our business needs, contractual cancellation provisions, fluctuating interest rates, and other factors may result in actual payments differing from the estimates. We cannot provide certainty regarding the timing and amounts of these payments. The following table summarizes our fixed contractual obligations and commitments:
<table><tr><td>Payments Due During the Year Ending December 31,</td><td>Debt</td><td>Leases</td><td>Purchase Obligations</td><td>Total</td></tr><tr><td></td><td colspan="4">(In millions)</td></tr><tr><td>2015</td><td>1,026</td><td>113</td><td>275</td><td>1,414</td></tr><tr><td>2016</td><td>164</td><td>96</td><td>58</td><td>318</td></tr><tr><td>2017</td><td>1,613</td><td>83</td><td>55</td><td>1,751</td></tr><tr><td>2018</td><td>148</td><td>63</td><td>43</td><td>254</td></tr><tr><td>2019</td><td>1,697</td><td>42</td><td>7</td><td>1,746</td></tr><tr><td>Thereafter</td><td>4,708</td><td>52</td><td>3</td><td>4,763</td></tr><tr><td></td><td>9,356</td><td>449</td><td>441</td><td>10,246</td></tr></table>
The significant assumptions used in our determination of amounts presented in the above table are as follows: ? Debt amounts include the principal and interest amounts of the respective debt instruments. For additional details related to our debt, please see “Note 10 – Debt” to the consolidated financial statements included in this report. This table does not reflect any amounts payable under our $3 billion revolving credit facility or $2 billion commercial paper program, for which no borrowings were outstanding as of December 31, 2014 . ? Lease amounts include minimum rental payments under our non-cancelable operating leases for office facilities, fulfillment centers, as well as computer and office equipment that we utilize under lease arrangements. The amounts presented are consistent with contractual terms and are not expected to differ significantly from actual results under our existing leases, unless a substantial change in our headcount needs requires us to expand our occupied space or exit an office facility early. MARATHON OIL CORPORATION Notes to Consolidated Financial Statements equivalent to the Exchangeable Shares at the acquisition date as discussed below. Additional shares of voting preferred stock will be issued as necessary to adjust the number of votes to account for changes in the exchange ratio. Preferred shares – In connection with the acquisition of Western discussed in Note 6, the Board of Directors authorized a class of voting preferred stock consisting of 6 million shares. Upon completion of the acquisition, we issued 5 million shares of this voting preferred stock to a trustee, who holds the shares for the benefit of the holders of the Exchangeable Shares discussed above. Each share of voting preferred stock is entitled to one vote on all matters submitted to the holders of Marathon common stock. Each holder of Exchangeable Shares may direct the trustee to vote the number of shares of voting preferred stock equal to the number of shares of Marathon common stock issuable upon the exchange of the Exchangeable Shares held by that holder. In no event will the aggregate number of votes entitled to be cast by the trustee with respect to the outstanding shares of voting preferred stock exceed the number of votes entitled to be cast with respect to the outstanding Exchangeable Shares. Except as otherwise provided in our restated certificate of incorporation or by applicable law, the common stock and the voting preferred stock will vote together as a single class in the election of directors of Marathon and on all other matters submitted to a vote of stockholders of Marathon generally. The voting preferred stock will have no other voting rights except as required by law. Other than dividends payable solely in shares of voting preferred stock, no dividend or other distribution, will be paid or payable to the holder of the voting preferred stock. In the event of any liquidation, dissolution or winding up of Marathon, the holder of shares of the voting preferred stock will not be entitled to receive any assets of Marathon available for distribution to its stockholders. The voting preferred stock is not convertible into any other class or series of the capital stock of Marathon or into cash, property or other rights, and may not be redeemed.25. Leases We lease a wide variety of facilities and equipment under operating leases, including land and building space, office equipment, production facilities and transportation equipment. Most long-term leases include renewal options and, in certain leases, purchase options. Future minimum commitments for capital lease obligations (including sale-leasebacks accounted for as financings) and for operating lease obligations having initial or remaining noncancelable lease terms in excess of one year are as follows:
<table><tr><td><i>(In millions)</i></td><td>Capital Lease Obligations (a)</td><td>Operating Lease Obligations</td></tr><tr><td>2010</td><td>$46</td><td>$165</td></tr><tr><td>2011</td><td>45</td><td>140</td></tr><tr><td>2012</td><td>58</td><td>121</td></tr><tr><td>2013</td><td>44</td><td>102</td></tr><tr><td>2014</td><td>44</td><td>84</td></tr><tr><td>Later years</td><td>466</td><td>313</td></tr><tr><td>Sublease rentals</td><td>-</td><td>-16</td></tr><tr><td>Total minimum lease payments</td><td>$703</td><td>$909</td></tr><tr><td>Less imputed interest costs</td><td>-257</td><td></td></tr><tr><td>Present value of net minimum lease payments</td><td>$446</td><td></td></tr></table>
(a) Capital lease obligations include $164 million related to assets under construction as of December 31, 2009. These leases are currently reported in long-term debt based on percentage of construction completed at $36 million. In connection with past sales of various plants and operations, we assigned and the purchasers assumed certain leases of major equipment used in the divested plants and operations of United States Steel. In the event of a default by any of the purchasers, United States Steel has assumed these obligations; however, we remain primarily obligated for payments under these leases. Minimum lease payments under these operating lease obligations of $16 million have been included above and an equal amount has been reported as sublease rentals. |
2,017 | In which year is Intangible amortization expense more than 17 million? | Table of Contents AAG’s Results of Operations In 2014, we realized operating income of $4.2 billion and net income of $2.9 million. Our 2014 net income included net special operating charges of $824 million and total net special charges of $1.3 billion. Excluding the effects of these special charges, we realized operating income of $5.1 billion and net income of $4.2 billion. We completed the Merger on December 9, 2013. Under GAAP, AAG’s results do not include the financial results of US Airways Group prior to the closing of the Merger. Accordingly, our 2014 period GAAP results are not comparable to the GAAP results for the 2013 or 2012 periods as those periods exclude the results of US Airways Group except for the 23 day post-Merger period from December 9, 2013 to December 31, 2013. When compared to the combined separate company results of AAG and US Airways Group for 2013, our 2014 net income excluding net special charges improved by $2.2 billion. In 2013, on a standalone basis,AAG reported a net loss of $1.6 billion and US Airways Group reported net income of $392 million. Excluding the effects of net special charges, AAG and US Airways Group reported 2013 net income of $1.2 billion and $786 million, respectively. When compared to the combined separate company results ofAAG and US Airways Group for 2012, our 2013 combined net income excluding net special charges improved by $1.5 billion. In 2012, on a standalone basis, AAG reported a net loss of $1.9 billion and US Airways Group reported net income of $637 million. Excluding the effects of net special charges, AAG reported a 2012 net loss of $130 million and US Airways Group reported net income of $537 million. The components of net special items in our accompanying consolidated statements of operations are as follows (in millions):
<table><tr><td rowspan="2"></td><td colspan="3">Year Ended December 31,</td></tr><tr><td> 2014</td><td>2013</td><td>2012</td></tr><tr><td>Other revenue special item, net -1</td><td>$—</td><td>$-31</td><td>$—</td></tr><tr><td>Mainline operating special items, net -2</td><td>800</td><td>559</td><td>386</td></tr><tr><td>Regional operating special items, net</td><td>24</td><td>8</td><td>1</td></tr><tr><td>Nonoperating special items, net -3</td><td>132</td><td>211</td><td>-280</td></tr><tr><td>Reorganization items, net -4</td><td>—</td><td>2,655</td><td>2,208</td></tr><tr><td>Income tax special items, net -5</td><td>346</td><td>-324</td><td>-569</td></tr><tr><td>Total</td><td>$1,302</td><td>$3,078</td><td>$1,746</td></tr></table>
(1) In 2013, other revenue special item, net included a credit to other revenues related to a change in accounting method resulting from the modification of AAG’s AAdvantage miles agreement with Citibank. (2) In 2014, mainline operating special items, net included $810 million of Merger integration expenses related to information technology, alignment of labor union contracts, professional fees, severance and retention, share-based compensation, divestiture of London Heathrow Slots, fleet restructuring, re-branding of aircraft and airport facilities, relocation and training. In addition, we recorded a net charge of $81 million for bankruptcy related items principally consisting of fair value adjustments for bankruptcy settlement obligations, $164 million in other special charges, including an $81 million charge to revise prior estimates of certain aircraft residual values, and other spare parts asset impairments, as well as $54 million in charges primarily relating to the buyout of certain aircraft leases. These charges were offset in part by a $309 million gain on the sale of Slots at DCA. In 2013, mainline operating special items, net included $443 million of primarily Merger related expenses due to the alignment of labor union contracts, professional fees, severance, share-based compensation and fees for US Airways to exit the Star Alliance and its codeshare agreement with United Airlines. In addition, we recorded a $107 million charge related to American’s pilot long-term disability obligation, a $43 million See table below for a reconciliation of business combination related items:
<table><tr><td>$ in millions</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Business combination related:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employee compensation expense<sup>(a)</sup></td><td>5.8</td><td>7.0</td><td>—</td><td>—</td><td>2.4</td></tr><tr><td>Transaction and integration expense<sup>(b)</sup></td><td>20.6</td><td>1.4</td><td>2.2</td><td>—</td><td>5.2</td></tr><tr><td>Intangible amortization expense<sup>(c)</sup></td><td>17.4</td><td>13.9</td><td>10.6</td><td>12.6</td><td>15.4</td></tr><tr><td>Adjustments to operating income</td><td>43.8</td><td>22.3</td><td>12.8</td><td>12.6</td><td>23.0</td></tr><tr><td>Change in contingent consideration estimates<sup>(d)</sup></td><td>-7.6</td><td>7.4</td><td>-27.1</td><td>—</td><td>—</td></tr><tr><td>Foreign exchange gain related to business acquisitions<sup>(e)</sup></td><td>-12.1</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other-than-temporary impairment<sup>(f)</sup></td><td>—</td><td>17.8</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Taxation:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Taxation on employee compensation expense<sup>(a)</sup></td><td>-2.1</td><td>-2.7</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Taxation on transaction and integration<sup>(b)</sup></td><td>-5.9</td><td>-0.5</td><td>-0.6</td><td>—</td><td>-2.1</td></tr><tr><td>Taxation on amortization<sup>(c)</sup></td><td>-1.6</td><td>-1.3</td><td>-1.5</td><td>-1.6</td><td>-1.5</td></tr><tr><td>Deferred taxation<sup>(g)</sup></td><td>19.6</td><td>19.3</td><td>20.1</td><td>21.8</td><td>21.3</td></tr><tr><td>Taxation on change in contingent consideration estimates<sup>(d)</sup></td><td>2.9</td><td>-2.8</td><td>10.3</td><td>—</td><td>—</td></tr><tr><td>Taxation on foreign exchange gain related to businessacquisitions<sup>(e)</sup></td><td>2.3</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>(Income)/loss from discontinued operations, net of taxes<sup>(h)</sup></td><td>—</td><td>—</td><td>—</td><td>3.4</td><td>-64.5</td></tr><tr><td>Adjustments to net income attributable to Invesco Ltd.</td><td>39.3</td><td>59.5</td><td>14.0</td><td>36.2</td><td>-23.8</td></tr></table>
a. Employee compensation expenses oincurred in f $5.8 million 2017 are related to our European ETF acquisition, while $7.0 million ed with the acquisition of Jemstep, a market incurred in 2016 are associat -leading provider of advisor- focused digital solutions. Expenses in 2013 are related to employee severance expenses associated with the cessation of activities from a previous acquisition. b. Transaction and integration expenses reflect the legal, regulatory, advisory, valuation, integration-related employee incentive awards, other professional or consulting fees and general and administrative costs, which includes travel costs related to transactions and the costs of temporary staf involved in executing the transaction, and the post f f -closing costs of integrating the acquired business into the company’s existing operations, including incremental costs associated with achieving synergy savings. c. Intangible amortization expense is associated with intangible assets that are identified from acquisition of a business and are amortized on a straight-line basis over useful lives. See Item 8, Financial Statements and Supplementary Data, Note 5 - “Intangible Assets” for detail. d. During 2015, the company acquired investment management contracts from Deutsche Bank and the purchase price was solely comprised of contingent consideration payable in future periods. Adjustment to the fair value of contingent consideration liability is a an increase o$7.4 millio$27.1 decrease of $7.6 million in 2017, f n in 2016 and a decrease of millioItem 8, Financial Statements and Supplementary Data, Note 2 n in 2015. See - “Fair Value of Assets and Liabilities” for detail. e. Other gains and losses for 2017 includes a realized gain of $12.1 million related to revaluation of Euros held in the U. K. in anticipation of payment for the European ETF business acquisition. f. Other-than-temporary impairment includes an impairment charge o$17.8 million hat is related to the f in 2016 t acquisition of Invesco Asset Management (India) Private Limited. g. While finite-lived intangible assets are amortized under U. S. GAAP, there is no amortization charge on goodwill and indefinite-lived intangibles. In certain qualifying situations, these can be amortized for tax purposes, generally over a 15-year period, as is the case in the U. S. These deferred tax liabilities represent tax benefits that are not included in the Consolidated Statements of Income absenan impairment charge or the dispos t al of the related business. The company receives these tax benefits but does not anticipate a sale or ipairment of these assets in the foreseeable future, an Operating/Performance Statistics Railroad performance measures reported to the AAR, as well as other performance measures, are included in the table below:
<table><tr><td></td><td><i>2010</i></td><td><i>2009</i></td><td><i>2008</i></td><td><i>% Change</i> <i>2010 v 2009</i></td><td><i>% Change</i><i>2009 v 2008</i></td></tr><tr><td>Average train speed (miles per hour)</td><td>26.2</td><td>27.3</td><td>23.5</td><td>-4%</td><td>16%</td></tr><tr><td>Average terminal dwell time (hours)</td><td>25.4</td><td>24.8</td><td>24.9</td><td>2%</td><td>-</td></tr><tr><td>Average rail car inventory (thousands)</td><td>274.4</td><td>283.1</td><td>300.7</td><td>-3%</td><td>-6%</td></tr><tr><td>Gross ton-miles (billions)</td><td>932.4</td><td>846.5</td><td>1,020.4</td><td>10%</td><td>-17%</td></tr><tr><td>Revenue ton-miles (billions)</td><td>520.4</td><td>479.2</td><td>562.6</td><td>9%</td><td>-15%</td></tr><tr><td>Operating ratio</td><td>70.6</td><td>76.1</td><td>77.4</td><td>-5.5 pt</td><td>-1.3 pt</td></tr><tr><td>Employees (average)</td><td>42,884</td><td>43,531</td><td>48,242</td><td>-1%</td><td>-10%</td></tr><tr><td>Customer satisfaction index</td><td>89</td><td>88</td><td>83</td><td>1 pt</td><td>5 pt</td></tr></table>
Average Train Speed – Average train speed is calculated by dividing train miles by hours operated on our main lines between terminals. Maintenance activities and weather disruptions, combined with higher volume levels, led to a 4% decrease in average train speed in 2010 compared to a record set in 2009. Overall, we continued operating a fluid and efficient network during the year. Lower volume levels, ongoing network management initiatives, and productivity improvements contributed to a 16% improvement in average train speed in 2009 compared to 2008. Average Terminal Dwell Time – Average terminal dwell time is the average time that a rail car spends at our terminals. Lower average terminal dwell time improves asset utilization and service. Average terminal dwell time increased 2% in 2010 compared to 2009, driven in part by our network plan to increase the length of numerous trains to improve overall efficiency, which resulted in higher terminal dwell time for some cars. Average terminal dwell time improved slightly in 2009 compared to 2008 due to lower volume levels combined with initiatives to expedite delivering rail cars to our interchange partners and customers. Average Rail Car Inventory – Average rail car inventory is the daily average number of rail cars on our lines, including rail cars in storage. Lower average rail car inventory reduces congestion in our yards and sidings, which increases train speed, reduces average terminal dwell time, and improves rail car utilization. Average rail car inventory decreased 3% in 2010 compared to 2009, while we handled 13% increases in carloads during the period compared to 2009. We maintained more freight cars off-line and retired a number of old freight cars, which drove the decreases. Average rail car inventory decreased 6% in 2009 compared to 2008 driven by a 16% decrease in volume. In addition, as carloads decreased, we stored more freight cars off-line. Gross and Revenue Ton-Miles – Gross ton-miles are calculated by multiplying the weight of loaded and empty freight cars by the number of miles hauled. Revenue ton-miles are calculated by multiplying the weight of freight by the number of tariff miles. Gross and revenue-ton-miles increased 10% and 9% in 2010 compared to 2009 due to a 13% increase in carloads. Commodity mix changes (notably automotive shipments) drove the variance in year-over-year growth between gross ton-miles, revenue ton-miles and carloads. Gross and revenue ton-miles decreased 17% and 15% in 2009 compared to 2008 due to a 16% decrease in carloads. Commodity mix changes (notably automotive shipments, which were 30% lower in 2009 versus 2008) drove the difference in declines between gross ton-miles and revenue tonmiles. Operating Ratio – Operating ratio is defined as our operating expenses as a percentage of operating revenue. Our operating ratio improved 5.5 points to 70.6% in 2010 and 1.3 points to 76.1% in 2009. Efficiently leveraging volume increases, core pricing gains, and productivity initiatives drove the improvement in 2010 and more than offset the impact of higher fuel prices during the year. Core pricing gains, lower fuel prices, network management initiatives, and improved productivity drove the improvement in 2009 and more than offset the 16% volume decline. Employees – Employee levels were down 1% in 2010 compared to 2009 despite a 13% increase in volume levels. We leveraged the additional volumes through network efficiencies and other productivity initiatives. In addition, we successfully managed the growth of our full-time-equivalent train and engine force levels at a rate less than half of our carload growth in 2010. All other operating functions and |
65,525 | In the section with largest amount of net cash provided by operating activities of continuing operations, what's the sum of proceeds from maturities of investments? (in million) | For the years ended December?31, 2018, 2017 and 2016, the amounts recognized in Principal transactions in the Consolidated Statement of Income related to derivatives not designated in a qualifying hedging relationship, as well as the underlying non-derivative instruments, are presented in Note?6 to the Consolidated Financial Statements. Citigroup presents this disclosure by showing derivative gains and losses related to its trading activities together with gains and losses related to non-derivative instruments within the same trading portfolios, as this represents how these portfolios are risk managed. The amounts recognized in Other revenue in the Consolidated Statement of Income related to derivatives not designated in a qualifying hedging relationship are shown below. The table below does not include any offsetting gains (losses) on the economically hedged items to the extent that such amounts are also recorded in Other revenue.
<table><tr><td></td><td>Gains (losses) included inOther revenue Year ended December 31,</td></tr><tr><td>In millions of dollars</td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Interest rate contracts</td><td>$-25</td><td>$-73</td><td>$51</td></tr><tr><td>Foreign exchange</td><td>-197</td><td>2,062</td><td>-847</td></tr><tr><td>Credit derivatives</td><td>-155</td><td>-538</td><td>-1,174</td></tr><tr><td>Total</td><td>$-377</td><td>$1,451</td><td>$-1,970</td></tr></table>
Accounting for Derivative Hedging Citigroup accounts for its hedging activities in accordance with ASC 815, Derivatives and Hedging. As a general rule, hedge accounting is permitted where the Company is exposed to a particular risk, such as interest rate or foreign exchange risk, that causes changes in the fair value of an asset or liability or variability in the expected future cash flows of an existing asset, liability or a forecasted transaction that may affect earnings. Derivative contracts hedging the risks associated with changes in fair value are referred to as fair value hedges, while contracts hedging the variability of expected future cash flows are cash flow hedges. Hedges that utilize derivatives or debt instruments to manage the foreign exchange risk associated with equity investments in non-U. S. -dollar-functionalcurrency foreign subsidiaries (net investment in a foreign operation) are net investment hedges. To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not applied), a hedging relationship must be highly effective in offsetting the risk designated as being hedged. The hedging relationship must be formally documented at inception, detailing the particular risk management objective and strategy for the hedge. This includes the item and risk(s) being hedged, the hedging instrument being used and how effectiveness will be assessed. The effectiveness of these hedging relationships is evaluated at hedge inception and on an ongoing basis both on a retrospective and prospective basis, typically using quantitative measures of correlation, with hedge ineffectiveness measured and recorded in current earnings. Hedge effectiveness assessment methodologies are performed in a similar manner for similar hedges, and are used consistently throughout the hedging relationships. The assessment of effectiveness may exclude changes in the value of the hedged item that are unrelated to the risks being hedged and the changes in fair value of the derivative associated with time value. Prior to January 1, 2018, these excluded items were recognized in current earnings for the hedging derivative, while changes in the value of a hedged item that were not related to the hedged risk were not recorded. Upon adoption of ASC 2017-12, Citi excludes changes in the cross currency basis associated with cross currency swaps from the assessment of hedge effectiveness and records it in other comprehensive income. Discontinued Hedge Accounting A hedging instrument must be highly effective in accomplishing the hedge objective of offsetting either changes in the fair value or cash flows of the hedged item for the risk being hedged. Management may voluntarily de-designate an accounting hedge at any time, but if a hedging relationship is not highly effective, it no longer qualifies for hedge accounting and must be de-designated. Subsequent changes in the fair value of the derivative are recognized in Other revenue or Principal transactions, similar to trading derivatives, with no offset recorded related to the hedged item. For fair value hedges, any changes in the fair value of the hedged item remain as part of the basis of the asset or liability and are ultimately realized as an element of the yield on the item. For cash flow hedges, changes in fair value of the end-user derivative remain in Accumulated other comprehensive income (loss) (AOCI) and are included in the earnings of future periods when the forecasted hedged cash flows impact earnings. However, if it becomes probable that some or all of the hedged forecasted transactions will not occur, any amounts that remain in AOCI related to these transactions must be immediately reflected in Other revenue. The foregoing criteria are applied on a decentralized basis, consistent with the level at which market risk is managed, but are subject to various limits and controls. The underlying asset, liability or forecasted transaction may be an individual item or a portfolio of similar items. Condensed Consolidating Statements of Cash Flows
<table><tr><td></td><td colspan="5">Year ended December 31, 2016</td></tr><tr><td>In millions of dollars</td><td>Citigroup parent company</td><td>CGMHI</td><td>Other Citigroup subsidiaries and eliminations</td><td>Consolidating adjustments</td><td>Citigroup consolidated</td></tr><tr><td>Net cash provided by operating activities of continuing operations</td><td>$11,605</td><td>$20,610</td><td>$21,518</td><td>$—</td><td>$53,733</td></tr><tr><td>Cash flows from investing activities of continuing operations</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchases of investments</td><td>$—</td><td>$-14</td><td>$-211,388</td><td>$—</td><td>$-211,402</td></tr><tr><td>Proceeds from sales of investments</td><td>3,024</td><td>—</td><td>129,159</td><td>—</td><td>132,183</td></tr><tr><td>Proceeds from maturities of investments</td><td>234</td><td>—</td><td>65,291</td><td>—</td><td>65,525</td></tr><tr><td>Change in loans</td><td>—</td><td>—</td><td>-39,761</td><td>—</td><td>-39,761</td></tr><tr><td>Proceeds from sales and securitizations of loans</td><td>—</td><td>—</td><td>18,140</td><td>—</td><td>18,140</td></tr><tr><td>Change in federal funds sold and resales</td><td>—</td><td>-15,294</td><td>-1,844</td><td>—</td><td>-17,138</td></tr><tr><td>Proceeds from significant disposals</td><td>—</td><td>—</td><td>265</td><td>—</td><td>265</td></tr><tr><td>Payments due to transfers of net liabilities associated with significant disposals</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Changes in investments and advances—intercompany</td><td>-18,083</td><td>-5,574</td><td>23,657</td><td>—</td><td>—</td></tr><tr><td>Other investing activities</td><td>—</td><td>57</td><td>-2,004</td><td>—</td><td>-1,947</td></tr><tr><td>Net cash used in investing activities of continuing operations</td><td>$-14,825</td><td>$-20,825</td><td>$-18,485</td><td>$—</td><td>$-54,135</td></tr><tr><td>Cash flows from financing activities of continuing operations</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Dividends paid</td><td>$-2,287</td><td>$—</td><td>$—</td><td>$—</td><td>$-2,287</td></tr><tr><td>Issuance of preferred stock</td><td>2,498</td><td>—</td><td>—</td><td>—</td><td>2,498</td></tr><tr><td>Treasury stock acquired</td><td>-9,290</td><td>—</td><td>—</td><td>—</td><td>-9,290</td></tr><tr><td>Proceeds (repayments) from issuance of long-term debt, net</td><td>7,005</td><td>5,916</td><td>-4,575</td><td>—</td><td>8,346</td></tr><tr><td>Proceeds (repayments) from issuance of long-term debt—intercompany, net</td><td>—</td><td>-9,453</td><td>9,453</td><td>—</td><td>—</td></tr><tr><td>Change in deposits</td><td>—</td><td>—</td><td>24,394</td><td>—</td><td>24,394</td></tr><tr><td>Change in federal funds purchased and repos</td><td>—</td><td>3,236</td><td>-7,911</td><td>—</td><td>-4,675</td></tr><tr><td>Change in short-term borrowings</td><td>-164</td><td>1,168</td><td>8,618</td><td>—</td><td>9,622</td></tr><tr><td>Net change in short-term borrowings and other advances—intercompany</td><td>4,620</td><td>680</td><td>-5,300</td><td>—</td><td>—</td></tr><tr><td>Other financing activities</td><td>-316</td><td>—</td><td>—</td><td>—</td><td>-316</td></tr><tr><td>Net cash provided by financing activities of continuing operations</td><td>$2,066</td><td>$6,557</td><td>$19,669</td><td>$—</td><td>$28,292</td></tr><tr><td>Effect of exchange rate changes on cash and due from banks</td><td>$—</td><td>$—</td><td>$-493</td><td>$—</td><td>$-493</td></tr><tr><td>Change in cash and due from banks and deposits with banks</td><td>$-1,154</td><td>$6,342</td><td>$22,209</td><td>$—</td><td>$27,397</td></tr><tr><td>Cash and due from banks and deposits with banks atbeginning of period</td><td>21,966</td><td>18,777</td><td>92,354</td><td>—</td><td>133,097</td></tr><tr><td>Cash and due from banks and deposits with banks at end of period</td><td>$20,812</td><td>$25,119</td><td>$114,563</td><td>$—</td><td>$160,494</td></tr><tr><td>Cash and due from banks</td><td>$142</td><td>$4,690</td><td>$18,211</td><td>$—</td><td>$23,043</td></tr><tr><td>Deposits with banks</td><td>20,670</td><td>20,429</td><td>96,352</td><td>—</td><td>137,451</td></tr><tr><td>Cash and due from banks and deposits with banks at end of period</td><td>$20,812</td><td>$25,119</td><td>$114,563</td><td>$—</td><td>$160,494</td></tr><tr><td>Supplemental disclosure of cash flow information for continuing operations</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash paid during the year for income taxes</td><td>$351</td><td>$92</td><td>$3,916</td><td>$—</td><td>$4,359</td></tr><tr><td>Cash paid during the year for interest</td><td>4,397</td><td>3,115</td><td>4,555</td><td>—</td><td>12,067</td></tr><tr><td>Non-cash investing activities</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Transfers to loans held-for-sale from loans</td><td>$—</td><td>$—</td><td>$13,900</td><td>$—</td><td>$13,900</td></tr><tr><td>Transfers to OREO and other repossessed assets</td><td>—</td><td>—</td><td>165</td><td>—</td><td>165</td></tr></table>
The foregoing review of factors should not be construed as exhaustive. New factors emerge from time to time, and it is not possible for management to predict all such factors, nor assess the impact of any such factor on the registrants’ business or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forwardlooking statements. A security rating is not a recommendation to buy, sell or hold securities that may be subject to revision or withdrawal at any time by the assigning rating organization. Each rating should be evaluated independently of any other rating. The registrants expressly disclaim any current intention to update any forward-looking statements contained herein as a result of new information, future events or otherwise. EXECUTIVE SUMMARY Earnings available to FirstEnergy Corp. in 2009 were $1.01 billion, or basic earnings of $3.31 per share of common stock ($3.29 diluted), compared with earnings available to FirstEnergy Corp. of $1.34 billion, or basic earnings of $4.41 per share of common stock ($4.38 diluted), in 2008 and $1.31 billion, or basic earnings of $4.27 per share ($4.22 diluted), in 2007.
<table><tr><td>Change in Basic Earnings Per Share From Prior Year</td><td>2009</td><td>2008</td></tr><tr><td>Basic Earnings Per Share – Prior Year</td><td>$4.41</td><td>$4.27</td></tr><tr><td>Non-core asset sales/impairments</td><td>0.47</td><td>0.02</td></tr><tr><td>Litigation settlement</td><td>-0.03</td><td>0.03</td></tr><tr><td>Trust securities impairment</td><td>0.16</td><td>-0.20</td></tr><tr><td>Saxton decommissioning regulatory asset – 2007</td><td>-</td><td>-0.05</td></tr><tr><td>Regulatory charges</td><td>-0.55</td><td>-</td></tr><tr><td>Derivative mark-to-market adjustment</td><td>-0.42</td><td>-</td></tr><tr><td>Organizational restructuring</td><td>-0.14</td><td>-</td></tr><tr><td>Debt redemption premiums</td><td>-0.31</td><td>-</td></tr><tr><td>Income tax resolution</td><td>0.68</td><td>-</td></tr><tr><td>Revenues</td><td>-1.85</td><td>1.61</td></tr><tr><td>Fuel and purchased power</td><td>-0.09</td><td>-1.24</td></tr><tr><td>Amortization of regulatory assets, net</td><td>-0.02</td><td>-0.44</td></tr><tr><td>Investment income</td><td>0.20</td><td>0.08</td></tr><tr><td>Interest expense</td><td>-0.14</td><td>0.04</td></tr><tr><td>Reduced common shares outstanding</td><td>-</td><td>0.03</td></tr><tr><td>Transmission expenses</td><td>0.73</td><td>-0.02</td></tr><tr><td>Other expenses</td><td>0.21</td><td>0.28</td></tr><tr><td>Basic Earnings Per Share</td><td>$3.31</td><td>$4.41</td></tr></table>
Financial Matters Proposed Merger with Allegheny Energy, Inc. On February 10, 2010, we entered into a Merger Agreement with Allegheny the consummation of which will result, among other things, in our becoming an electric utility holding company for: ? generation subsidiaries owning or controlling approximately 24,000 MWs of generating capacity from a diversified mix of regional coal, nuclear, natural gas, oil and renewable power, ? ten regulated electric distribution subsidiaries providing electric service to more than six million customers in Pennsylvania, Ohio, Maryland, New Jersey, New York, Virginia and West Virginia, and ? transmission subsidiaries owning over 20,000 miles of high-voltage lines connecting the Midwest and Mid-Atlantic. Upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub will merge with and into Allegheny with Allegheny continuing as the surviving corporation and a wholly-owned subsidiary of FirstEnergy. Pursuant to the Merger Agreement, upon the closing of the merger, each issued and outstanding share of Allegheny common stock, including grants of restricted common stock, will automatically be converted into the right to receive 0.667 of a share of common stock of FirstEnergy. Completion of the merger is conditioned upon, among other things, shareholder approval of both companies as well as expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and approval by the FERC, the Maryland Public Service Commission, PPUC, the Virginia State Corporation Commission and the West Virginia Public Service Commission. We anticipate that the necessary approvals will be obtained within 12 to 14 months. The Merger Agreement contains certain termination rights for both us and Allegheny, and further provides for the payment of fees and expenses upon termination under specified circumstances. Further information concerning the proposed merger will be included in a joint proxy statement/prospectus contained in the registration statement on Form S-4 to be filed by us with the SEC in connection with the merger. 11: ASSET RETIREMENT OBLIGATIONS CMS Energy and Consumers record the fair value of the cost to remove assets at the end of their useful lives, if there is a legal obligation to remove them. No market risk premiums were included in CMS Energy’s and Consumers’ ARO fair value estimates since reasonable estimates could not be made. If a five percent market risk premium were assumed, CMS Energy’s and Consumers’ ARO liabilities would be $17 million higher at December 31, 2014 and $16 million higher at December 31, 2013. In 2013, Consumers updated the ARO for asbestos abatement to reflect a revised estimate of future obligations at its steam electric generating units. In 2014, Consumers recorded the initial estimate of $3 million for closure of the Cross Winds? Energy Park. If a reasonable estimate of fair value cannot be made in the period in which the ARO is incurred, such as for assets with indeterminate lives, the liability is recognized when a reasonable estimate of fair value can be made. CMS Energy and Consumers have not recorded liabilities for assets that have insignificant cumulative disposal costs, such as substation batteries. Presented below are the categories of assets that CMS Energy and Consumers have legal obligations to remove at the end of their useful lives and for which they have an ARO liability recorded:
<table><tr><td>Company and ARO Description</td><td>In-Service Date</td><td>Long-Lived Assets</td></tr><tr><td> CMS Energy, including Consumers</td><td></td><td></td></tr><tr><td>Closure of gas treating plant and gas wells</td><td>Various</td><td>Gas transmission and storage</td></tr><tr><td>Closure of coal ash disposal areas</td><td>Various</td><td>Generating plants coal ash areas</td></tr><tr><td>Asbestos abatement</td><td>1973</td><td>Electric and gas utility plant</td></tr><tr><td>Gas distribution cut, purge, and cap</td><td>Various</td><td>Gas distribution mains and services</td></tr><tr><td>Closure of wind parks</td><td>2012, 2014</td><td>Wind generation facilities</td></tr><tr><td> Consumers</td><td></td><td></td></tr><tr><td>Closure of coal ash disposal areas</td><td>Various</td><td>Generating plants coal ash areas</td></tr><tr><td>Asbestos abatement</td><td>1973</td><td>Electric and gas utility plant</td></tr><tr><td>Gas distribution cut, purge, and cap</td><td>Various</td><td>Gas distribution mains and services</td></tr><tr><td>Closure of wind parks</td><td>2012, 2014</td><td>Wind generation facilities</td></tr></table>
No assets have been restricted for purposes of settling AROs. Presented in the following tables are the changes in CMS Energy’s and Consumers’ ARO liabilities:
<table><tr><td>Company and ARO Description</td><td>ARO Liability 12/31/2013</td><td>Incurred</td><td>Settled 1</td><td>Accretion</td><td>Cash flow Revisions</td><td><i>In Millions</i> ARO Liability 12/31/2014</td></tr><tr><td> CMS Energy, including Consumers</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Gas treating plant and gas wells</td><td>$ 1</td><td>$ -</td><td>$ -</td><td>$ -</td><td>$ -</td><td>$ 1</td></tr><tr><td>Consumers</td><td>324</td><td>9</td><td>-12</td><td>18</td><td>-</td><td>339</td></tr><tr><td>Total CMS Energy</td><td>$ 325</td><td>$ 9</td><td>$ -12</td><td>$ 18</td><td>$ -</td><td>$ 340</td></tr><tr><td> Consumers</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Coal ash disposal areas</td><td>$ 118</td><td>$ -</td><td>$ -3</td><td>$ 5</td><td>$ -</td><td>$ 120</td></tr><tr><td>Asbestos abatement</td><td>49</td><td>-</td><td>-1</td><td>3</td><td>-</td><td>51</td></tr><tr><td>Gas distribution cut, purge, and cap</td><td>154</td><td>6</td><td>-8</td><td>10</td><td>-</td><td>162</td></tr><tr><td>Wind parks</td><td>3</td><td>3</td><td>-</td><td>-</td><td>-</td><td>6</td></tr><tr><td>Total Consumers</td><td>$ 324</td><td>$ 9</td><td>$ -12</td><td>$ 18</td><td>$ -</td><td>$ 339</td></tr></table>
Common Stocks: Common stocks in the OPEB Plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices. Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in the funds. Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. |
13,449 | what's the total amount of Debt maturities of Thereafter, Operating lease obligations of More than 5 years is, and Total of Thereafter ? | A summary of these various obligations at December 31, 2012, follows (in millions):
<table><tr><td></td><td>Total</td><td>2013</td><td>2014 to2015</td><td>2016 to2017</td><td>Thereafter</td></tr><tr><td>Reclamation and environmental obligations<sup>a</sup></td><td>$5,243</td><td>$246</td><td>$471</td><td>$329</td><td>$4,197</td></tr><tr><td>Debt maturities</td><td>3,527</td><td>2</td><td>500</td><td>500</td><td>2,525</td></tr><tr><td>Take-or-pay contracts<sup>b</sup></td><td>2,200</td><td>976</td><td>731</td><td>286</td><td>207</td></tr><tr><td>Scheduled interest payment obligations<sup>c</sup></td><td>1,289</td><td>121</td><td>241</td><td>226</td><td>701</td></tr><tr><td>Operating lease obligations</td><td>205</td><td>32</td><td>38</td><td>31</td><td>104</td></tr><tr><td>Total<sup>d</sup></td><td>$12,464</td><td>$1,377</td><td>$1,981</td><td>$1,372</td><td>$7,734</td></tr></table>
a. Represents estimated cash payments, on an undiscounted and unescalated basis, associated with reclamation and environmental activities. The timing and the amount of these payments could change as a result of changes in regulatory requirements, changes in scope and timing of reclamation activities, the settlement of environmental matters and as actual spending occurs. Refer to Note 13 for additional discussion of environmental and reclamation matters. b. Represents contractual obligations for purchases of goods or services that are defined by us as agreements that are enforceable and legally binding and that specify all significant terms. Take-orpay contracts primarily comprise the procurement of copper concentrates ($799 million), electricity ($524 million) and transportation services ($448 million). Some of our take-or-pay contracts are settled based on the prevailing market rate for the service or commodity purchased, and in some cases, the amount of the actual obligation may change over time because of market conditions. Obligations for copper concentrates provide for deliveries of specified volumes to Atlantic Copper at market-based prices. Electricity obligations are primarily for contractual minimum demand at the South America and Tenke mines. Transportation obligations are primarily for South America contracted ocean freight and for North America rail freight. c. Scheduled interest payment obligations were calculated using stated coupon rates for fixed-rate debt and interest rates applicable at December 31, 2012, for variable-rate debt. d. This table excludes certain other obligations in our consolidated balance sheets, including estimated funding for pension obligations as the funding may vary from year to year based on changes in the fair value of plan assets and actuarial assumptions, accrued liabilities totaling $107 million that relate to unrecognized tax benefits where the timing of settlement is not determinable; Atlantic Copper's obligations for retired employees totaling $38 million (refer to Note 10); and PT Freeport Indonesia's reclamation and closure cash fund obligation totaling $17 million (refer to Note 13). This table also excludes purchase orders for the purchase of inventory and other goods and services, as purchase orders typically represent authorizations to purchase rather than binding agreements. In addition to our debt maturities and other contractual obligations discussed above, we have other commitments, which we expect to fund with available cash, projected operating cash flows, available credit facility or future financing transactions, if necessary. These include (i) PT Freeport Indonesia’s commitment to provide one percent of its annual revenue for the development of the local people in its area of operations through the Freeport Partnership Fund for Community Development, (ii) TFM’s commitment to provide 0.3 percent of its annual revenue for the development of the local people in its area of operations and (iii) other commercial commitments, including standby letters of credit, surety bonds and guarantees. Refer to Notes 13 and 14 for further discussion. CONTINGENCIES Environmental The cost of complying with environmental laws is a fundamental and substantial cost of our business. At December 31, 2012, we had $1.2 billion recorded in our consolidated balance sheets for environmental obligations attributed to CERCLA or analogous state programs and for estimated future costs associated with environmental obligations that are considered probable based on specific facts and circumstances. During 2012, we incurred environmental capital expenditures and other environmental costs (including our joint venture partners’ shares) of $612 million for programs to comply with applicable environmental laws and regulations that affect our operations, compared to $387 million in 2011 and $372 million in 2010. The increase in environmental costs in 2012, compared with 2011 and 2010, primarily relates to higher expenditures for land and settlements of environmental matters (see Note 13 for further discussion). For 2013, we expect to incur approximately $600 million of aggregate environmental capital expenditures and other environmental costs, which are part of our overall 2013 operating budget. The timing and amount of estimated payments could change as a result of changes in regulatory requirements, changes in scope and timing of reclamation activities, the settlement of environmental matters and as actual spending occurs. Refer to Note 13 for further information about environmental regulation, including significant environmental matters. Asset Retirement Obligations We recognize AROs as liabilities when incurred, with the initial measurement at fair value. These obligations, which are initially estimated based on discounted cash flow estimates, are accreted to full value over time through charges to income. Reclamation costs for disturbances are recorded as an ARO in the period of disturbance. Our cost estimates are reflected on a third-party cost basis and comply with our legal obligation to retire tangible, long-lived assets. At December 31, 2012, we had $1.1 billion recorded in our consolidated balance sheets for AROs. Spending ILLUMINA, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Advertising Costs The Company expenses advertising costs as incurred. Advertising costs were approximately $440,000 for 2003, $267,000 for 2002 and $57,000 for 2001. Income Taxes A deferred income tax asset or liability is computed for the expected future impact of differences between the financial reporting and tax bases of assets and liabilities, as well as the expected future tax benefit to be derived from tax loss and credit carryforwards. Deferred income tax expense is generally the net change during the year in the deferred income tax asset or liability. Valuation allowances are established when realizability of deferred tax assets is uncertain. The effect of tax rate changes is reflected in tax expense during the period in which such changes are enacted. Foreign Currency Translation The functional currencies of the Company’s wholly owned subsidiaries are their respective local currencies. Accordingly, all balance sheet accounts of these operations are translated to U. S. dollars using the exchange rates in effect at the balance sheet date, and revenues and expenses are translated using the average exchange rates in effect during the period. The gains and losses from foreign currency translation of these subsidiaries’ financial statements are recorded directly as a separate component of stockholders’ equity under the caption ‘‘Accumulated other comprehensive income. ’’ Stock-Based Compensation At December 28, 2003, the Company has three stock-based employee and non-employee director compensation plans, which are described more fully in Note 5. As permitted by SFAS No.123, Accounting for Stock-Based Compensation, the Company accounts for common stock options granted, and restricted stock sold, to employees, founders and directors using the intrinsic value method and, thus, recognizes no compensation expense for options granted, or restricted stock sold, with exercise prices equal to or greater than the fair value of the Company’s common stock on the date of the grant. The Company has recorded deferred stock compensation related to certain stock options, and restricted stock, which were granted prior to the Company’s initial public offering with exercise prices below estimated fair value (see Note 5), which is being amortized on an accelerated amortization methodology in accordance with Financial Accounting Standards Board Interpretation Number (‘‘FIN’’) 28. Pro forma information regarding net loss is required by SFAS No.123 and has been determined as if the Company had accounted for its employee stock options and employee stock purchases under the fair value method of that statement. The fair value for these options was estimated at the dates of grant using the fair value option pricing model (Black Scholes) with the following weighted-average assumptions for 2003, 2002 and 2001:
<table><tr><td></td><td>Year Ended December 28, 2003</td><td>Year Ended December 29, 2002</td><td>Year Ended December 30, 2001</td></tr><tr><td>Weighted average risk-free interest rate</td><td>3.03%</td><td>3.73%</td><td>4.65%</td></tr><tr><td>Expected dividend yield</td><td>0%</td><td>0%</td><td>0%</td></tr><tr><td>Weighted average volatility</td><td>103%</td><td>104%</td><td>119%</td></tr><tr><td>Estimated life (in years)</td><td>5</td><td>5</td><td>5</td></tr><tr><td>Weighted average fair value of options granted</td><td>$3.31</td><td>$4.39</td><td>$7.51</td></tr></table>
The Company renewed an unsecured bank credit line on April 29, 2010 which provides for funding of up to $5,000 and bears interest at the prime rate less 1% (2.25% at June 30, 2010). The credit line was renewed through April 29, 2012. At June 30, 2010, $762 was outstanding. The Company renewed a bank credit line on March 7, 2010 which provides for funding of up to $8,000 and bears interest at the Federal Reserve Board’s prime rate (3.25% at June 30, 2010). The credit line expires March 7, 2011 and is secured by $1,000 of investments. At June 30, 2010, no amount was outstanding. The Company has entered into a bank credit facility agreement that includes a revolving loan, a term loan and a bullet term loan. The revolving loan allows short-term borrowings of up to $150,000, which may be increased by the Company at any time until maturity to $250,000. The revolving loan terminates June 4, 2015. At June 30, 2010, the outstanding revolving loan balance was $120,000. The term loan has an original principal balance of $150,000, with quarterly principal payments of $5,625 beginning on September 30, 2011, and the remaining balance due June 4, 2015. The bullet term loan had an original principal balance of $100,000. The full balance, which would have been due on December 4, 2010, was paid in full on July 8, 2010 as set forth in Note 15 to the Consolidated Financial Statements (see Item 8). Each of the loans bear interest at a variable rate equal to (a) a rate based on LIBOR or (b) an alternate base rate (the greater of (a) the Federal Funds Rate plus 0.5%, (b) the Prime Rate or (c) LIBOR plus 1.0%), plus an applicable percentage in each case determined by the Company’s leverage ratio. The outstanding balances bear interest at a weighted average rate of 2.99%. The loans are secured by pledges of capital stock of certain subsidiaries of the Company. The loans are also guaranteed by certain subsidiaries of the Company. The credit facility is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the agreement. As of June 30, 2010, the Company was in compliance with all such covenants. The Company has entered into various capital lease obligations for the use of certain computer equipment. Included in property and equipment are related assets of $8,872. At June 30, 2010, $5,689 was outstanding, of which $4,380 will be maturing in the next twelve months. Contractual Obligations and Other Commitments At June 30, 2010 the Company’s total off balance sheet contractual obligations were $36,935. This balance consists of $27,228 of long-term operating leases for various facilities and equipment which expire from 2011 to 2017 and the remaining $9,707 is for purchase commitments related to property and equipment, particularly for contractual obligations related to the on-going construction of new facilities. The table excludes $7,548 of liabilities for uncertain tax positions as we are unable to reasonably estimate the ultimate amount or timing of settlement. Contractual obligations by Less than More than
<table><tr><td>Contractual obligations by</td><td rowspan="2">Less than 1 year</td><td></td><td></td><td rowspan="2">More than 5 years</td><td></td></tr><tr><td>period as of June 30, 2010</td><td>1-3 years</td><td>3-5 years</td><td>TOTAL</td></tr><tr><td>Operating lease obligations</td><td>$ 8,765</td><td>$ 9,422</td><td>$ 5,851</td><td>$ 3,190</td><td>$ 27,228</td></tr><tr><td>Capital lease obligations</td><td>4,380</td><td>1,309</td><td>-</td><td>-</td><td>5,689</td></tr><tr><td>Notes payable, including accrued interest</td><td>102,493</td><td>46,210</td><td>225,213</td><td>-</td><td>373,916</td></tr><tr><td>Purchase obligations</td><td>9,707</td><td>-</td><td>-</td><td>-</td><td>9,707</td></tr><tr><td>Total</td><td>$125,345</td><td>$56,941</td><td>$231,064</td><td>$3,190</td><td>$416,540</td></tr></table>
Recent Accounting Pronouncements In December 2007, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards (“SFAS”) No.141(R), “Business Combinations,” (“SFAS 141(R)”) which replaces SFAS No.141 and has since been incorporated into the Accounting Standards Codification (“ASC”) as ASC 805-10. ASC 805-10 establishes principles and requirements for how an acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, any non-controlling interest in the acquired entity and the goodwill acquired. The Statement also establishes disclosure requirements which will enable users of the financial statements to evaluate the nature and financial effects of the business combination. Relative to SFAS 141(R), the FASB issued FSP 141(R)-1 on April 1, 2009, which is now incorporated in ASC 805-20. ASC 805-20 eliminates the requirement under FAS 141(R) to record assets and liabilities at the acquisition date for noncontractual contingencies at fair value where it is deemed “more-likely-than-not” that an asset or liability would result. Under ASC 805-20, such assets and liabilities would only need to be recorded where the fair value can be determined during the measurement period or where it is probable that an asset or liability exists at the acquisition date and the amount of fair value can be reasonably determined. ASC 805-10 was effective for the Company on July 1, 2009. The adoption Insurance. The following table presents the underwriting results and ratios for the Insurance segment for the periods indicated.
<table><tr><td></td><td colspan="3">Years Ended December 31,</td><td colspan="2">2012/2011</td><td colspan="2">2011/2010</td></tr><tr><td>(Dollars in millions)</td><td>2012</td><td>2011</td><td>2010</td><td>Variance</td><td>% Change</td><td>Variance</td><td>% Change</td></tr><tr><td>Gross written premiums</td><td>$1,073.1</td><td>$975.6</td><td>$865.4</td><td>$97.5</td><td>10.0%</td><td>$110.3</td><td>12.7%</td></tr><tr><td>Net written premiums</td><td>852.1</td><td>820.5</td><td>620.3</td><td>31.6</td><td>3.9%</td><td>200.2</td><td>32.3%</td></tr><tr><td>Premiums earned</td><td>$852.4</td><td>$821.2</td><td>$641.1</td><td>$31.3</td><td>3.8%</td><td>$180.1</td><td>28.1%</td></tr><tr><td>Incurred losses and LAE</td><td>700.3</td><td>705.9</td><td>536.8</td><td>-5.6</td><td>-0.8%</td><td>169.2</td><td>31.5%</td></tr><tr><td>Commission and brokerage</td><td>117.6</td><td>137.7</td><td>120.8</td><td>-20.1</td><td>-14.6%</td><td>16.9</td><td>14.0%</td></tr><tr><td>Other underwriting expenses</td><td>103.0</td><td>89.5</td><td>69.7</td><td>13.5</td><td>15.1%</td><td>19.8</td><td>28.5%</td></tr><tr><td>Underwriting gain (loss)</td><td>$-68.5</td><td>$-111.9</td><td>$-86.1</td><td>$43.5</td><td>-38.8%</td><td>$-25.8</td><td>30.0%</td></tr><tr><td></td><td></td><td></td><td></td><td></td><td>Point Chg</td><td></td><td>Point Chg</td></tr><tr><td>Loss ratio</td><td>82.2%</td><td>86.0%</td><td>83.7%</td><td></td><td>-3.8</td><td></td><td>2.3</td></tr><tr><td>Commission and brokerage ratio</td><td>13.8%</td><td>16.8%</td><td>18.8%</td><td></td><td>-3.0</td><td></td><td>-2.0</td></tr><tr><td>Other underwriting expense ratio</td><td>12.0%</td><td>10.8%</td><td>10.9%</td><td></td><td>1.2</td><td></td><td>-0.1</td></tr><tr><td>Combined ratio</td><td>108.0%</td><td>113.6%</td><td>113.4%</td><td></td><td>-5.6</td><td></td><td>0.2</td></tr><tr><td colspan="2">(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
Premiums. Gross written premiums increased by 10.0% to $1,073.1 million in 2012 compared to $975.6 million in 2011. This increase was primarily driven by crop and primary A&H medical stop loss business, partially offset by the termination and runoff of several large casualty programs. Net written premiums increased 3.9% to $852.1 million in 2012 compared to $820.5 million in 2011. The lower increase in net written premiums in comparison to gross written premiums is primarily attributable to a higher level of reinsurance employed for the crop business. Premiums earned increased 3.8% to $852.4 million in 2012 compared to $821.2 million in 2011. The change in premiums earned is relatively consistent with the increase in net written premiums. Gross written premiums increased by 12.7% to $975.6 million in 2011 compared to $865.4 million in 2010. This was due to strategic portfolio changes with growth in short-tail business, primarily driven by the acquisition of Heartland, which provided $169.6 million of new crop insurance premium in 2011 and $54.0 million growth in A&H primary business, partially offset by the reduction of a large casualty program. Net written premiums increased 32.3% to $820.5 million in 2011 compared to $620.3 million for the same period in 2010 due to higher gross premiums and reduced levels of ceded reinsurance, primarily due to the reduction of the large casualty program. Premiums earned increased 28.1% to $821.2 million in 2011 compared to $641.1 million in 2010. The change in premiums earned is relatively consistent with the increase in net written premiums. |
0.51515 | as of dec 31 , 2015 , what percentage of total indebtedness was nonsecure? | ended December 31, 2015 and 2014, respectively. The increase in cash provided by accounts payable-inventory financing was primarily due to a new vendor added to our previously existing inventory financing agreement. For a description of the inventory financing transactions impacting each period, see Note 6 (Inventory Financing Agreements) to the accompanying Consolidated Financial Statements. For a description of the debt transactions impacting each period, see Note 8 (Long-Term Debt) to the accompanying Consolidated Financial Statements. Net cash used in financing activities decreased $56.3 million in 2014 compared to 2013. The decrease was primarily driven by several debt refinancing transactions during each period and our July 2013 IPO, which generated net proceeds of $424.7 million after deducting underwriting discounts, expenses and transaction costs. The net impact of our debt transactions resulted in cash outflows of $145.9 million and $518.3 million during 2014 and 2013, respectively, as cash was used in each period to reduce our total long-term debt. For a description of the debt transactions impacting each period, see Note 8 (Long-Term Debt) to the accompanying Consolidated Financial Statements. Long-Term Debt and Financing Arrangements As of December 31, 2015, we had total indebtedness of $3.3 billion, of which $1.6 billion was secured indebtedness. At December 31, 2015, we were in compliance with the covenants under our various credit agreements and indentures. The amount of CDW’s restricted payment capacity under the Senior Secured Term Loan Facility was $679.7 million at December 31, 2015. For further details regarding our debt and each of the transactions described below, see Note 8 (Long-Term Debt) to the accompanying Consolidated Financial Statements. During the year ended December 31, 2015, the following events occurred with respect to our debt structure: ? On August 1, 2015, we consolidated Kelway’s Term Loan and Kelway’s Revolving Credit Facility. Kelway’s Term Loan is denominated in British Pounds. The Kelway Revolving Credit Facility is a multi-currency revolving credit facility under which Kelway is permitted to borrow an aggregate amount of ￡50.0 million ($73.7 million) as of December 31, 2015. ? On March 3, 2015, we completed the issuance of $525.0 million principal amount of 5.0% Senior Notes due 2023 which will mature on September 1, 2023. ? On March 3, 2015, we redeemed the remaining $503.9 million aggregate principal amount of the 8.5% Senior Notes due 2019, plus accrued and unpaid interest through the date of redemption, April 2, 2015. Inventory Financing Agreements We have entered into agreements with certain financial intermediaries to facilitate the purchase of inventory from various suppliers under certain terms and conditions. These amounts are classified separately as accounts payable-inventory financing on the Consolidated Balance Sheets. We do not incur any interest expense associated with these agreements as balances are paid when they are due. For further details, see Note 6 (Inventory Financing Agreements) to the accompanying Consolidated Financial Statements. Contractual Obligations We have future obligations under various contracts relating to debt and interest payments, operating leases and asset retirement obligations. Our estimated future payments, based on undiscounted amounts, under contractual obligations that existed as of December 31, 2015, are as follows:
<table><tr><td></td><td>Payments Due by Period</td></tr><tr><td>(in millions)</td><td>Total</td><td>< 1 year</td><td>1-3 years</td><td>4-5 years</td><td>> 5 years</td></tr><tr><td>Term Loan<sup>-1</sup></td><td>$1,703.4</td><td>$63.9</td><td>$126.3</td><td>$1,513.2</td><td>$—</td></tr><tr><td>Kelway Term Loan<sup>-1</sup></td><td>90.9</td><td>13.5</td><td>77.4</td><td>—</td><td>—</td></tr><tr><td>Senior Notes due 2022<sup>-2</sup></td><td>852.0</td><td>36.0</td><td>72.0</td><td>72.0</td><td>672.0</td></tr><tr><td>Senior Notes due 2023<sup>-2</sup></td><td>735.1</td><td>26.3</td><td>52.5</td><td>52.5</td><td>603.8</td></tr><tr><td>Senior Notes due 2024<sup>-2</sup></td><td>859.7</td><td>31.6</td><td>63.3</td><td>63.3</td><td>701.5</td></tr><tr><td>Operating leases<sup>-3</sup></td><td>143.2</td><td>22.5</td><td>41.7</td><td>37.1</td><td>41.9</td></tr><tr><td>Asset retirement obligations<sup>-4</sup></td><td>1.8</td><td>0.8</td><td>0.5</td><td>0.3</td><td>0.2</td></tr><tr><td>Total</td><td>$4,386.1</td><td>$194.6</td><td>$433.7</td><td>$1,738.4</td><td>$2,019.4</td></tr></table>
ES TO CONSOLIDATED FINANCIAL STATEMENTS 90 Selected Segment Financial Information Information regarding the Company’s segments for the years ended December 31, 2015, 2014 and 2013 is as follows:
<table><tr><td>(in millions)</td><td>Corporate</td><td>Public</td><td>Other</td><td>Headquarters</td><td>Total</td></tr><tr><td>2015:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales</td><td>$6,816.4</td><td>$5,125.5</td><td>$1,046.8</td><td>$—</td><td>$12,988.7</td></tr><tr><td>Income (loss) from operations</td><td>470.1</td><td>343.3</td><td>43.1</td><td>-114.5</td><td>742.0</td></tr><tr><td>Depreciation and amortization expense</td><td>-96.0</td><td>-43.7</td><td>-24.4</td><td>-63.3</td><td>-227.4</td></tr><tr><td>2014:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales</td><td>$6,475.5</td><td>$4,879.4</td><td>$719.6</td><td>$—</td><td>$12,074.5</td></tr><tr><td>Income (loss) from operations</td><td>439.8</td><td>313.2</td><td>32.9</td><td>-112.9</td><td>673.0</td></tr><tr><td>Depreciation and amortization expense</td><td>-96.3</td><td>-43.8</td><td>-8.8</td><td>-59.0</td><td>-207.9</td></tr><tr><td>2013:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales</td><td>$5,960.1</td><td>$4,164.5</td><td>$644.0</td><td>$—</td><td>$10,768.6</td></tr><tr><td>Income (loss) from operations<sup>(1)</sup></td><td>363.3</td><td>246.5</td><td>27.2</td><td>-128.4</td><td>508.6</td></tr><tr><td>Depreciation and amortization expense</td><td>-97.3</td><td>-44.0</td><td>-8.6</td><td>-58.3</td><td>-208.2</td></tr></table>
(1) Includes $75.0 million of IPO- and secondary-offering related expenses, as follows: Corporate $26.4 million; Public $14.4 million; Other $3.6 million; and Headquarters $30.6 million. For additional information relating to the IPO- and secondary-offering, see Note 10 (Stockholders’ Equity). Geographic Areas and Revenue Mix The Company does not have Net sales to customers outside of the U. S. exceeding 10% of the Company’s total Net sales in 2015, 2014 and 2013. The Company does not have long-lived assets located outside of the U. S. exceeding 10% of the Company’s total long-lived assets as of December 31, 2015 and 2014, respectively. The following table presents net sales by major category for the years ended December 31, 2015, 2014 and 2013. Categories are based upon internal classifications. Amounts for the years ended December 31, 2014 and 2013 have been reclassified for certain changes in individual product classifications to conform to the presentation for the year ended December 31, 2015.
<table><tr><td></td><td colspan="2">Year EndedDecember 31, 2015</td><td colspan="2">Year EndedDecember 31, 2014</td><td colspan="2">Year EndedDecember 31, 2013</td></tr><tr><td></td><td>Dollars inMillions</td><td>Percentageof Total NetSales</td><td>Dollars inMillions</td><td>Percentageof Total NetSales</td><td>Dollars inMillions</td><td>Percentageof Total NetSales</td></tr><tr><td>Notebooks/Mobile Devices</td><td>$2,539.4</td><td>19.6%</td><td>$2,354.0</td><td>19.5%</td><td>$1,696.5</td><td>15.8%</td></tr><tr><td>Netcomm Products</td><td>1,914.9</td><td>14.7</td><td>1,613.3</td><td>13.4</td><td>1,482.7</td><td>13.8</td></tr><tr><td>Enterprise and Data Storage (Including Drives)</td><td>1,065.2</td><td>8.2</td><td>1,024.2</td><td>8.5</td><td>999.3</td><td>9.3</td></tr><tr><td>Other Hardware</td><td>4,756.4</td><td>36.6</td><td>4,551.1</td><td>37.6</td><td>4,184.1</td><td>38.8</td></tr><tr><td>Software</td><td>2,163.6</td><td>16.7</td><td>2,064.1</td><td>17.1</td><td>1,982.4</td><td>18.4</td></tr><tr><td>Services</td><td>478.0</td><td>3.7</td><td>371.9</td><td>3.1</td><td>332.7</td><td>3.1</td></tr><tr><td>Other<sup>-1</sup></td><td>71.2</td><td>0.5</td><td>95.9</td><td>0.8</td><td>90.9</td><td>0.8</td></tr><tr><td>Total Net sales</td><td>$12,988.7</td><td>100.0%</td><td>$12,074.5</td><td>100.0%</td><td>$10,768.6</td><td>100.0%</td></tr></table>
(1) Includes items such as delivery charges to customers and certain commission revenue.17. Supplemental Guarantor Information The 2022 Senior Notes, the 2023 Senior Notes and the 2024 Senior Notes are, and, prior to being redeemed in full, the 2019 Senior Notes, the 12.535% Senior Subordinated Exchange Notes due 2017, and the 8.0% Senior Secured Notes due 2018 were guaranteed by Parent and each of CDW LLC’s direct and indirect, 100% owned, domestic subsidiaries PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock has been listed on the Nasdaq Global Select Market since June 27, 2013 under the symbol “CDW. ” The following table sets forth the ranges of high and low sales prices per share of our common stock as reported on the Nasdaq Global Select Market and the cash dividends per share of common stock declared for the two most recent fiscal years. |
18,068.83365 | what is the average price of the increased electricity usage per gwh? | Entergy Corporation and Subsidiaries Notes to Financial Statements 145 The fair value of debt securities, summarized by contractual maturities, as of December 31, 2009 and 2008 are as follows:
<table><tr><td></td><td>2009</td><td>2008</td></tr><tr><td></td><td colspan="2">(In Millions)</td></tr><tr><td>less than 1 year</td><td>$31</td><td>$21</td></tr><tr><td>1 year - 5 years</td><td>676</td><td>526</td></tr><tr><td>5 years - 10 years</td><td>388</td><td>490</td></tr><tr><td>10 years - 15 years</td><td>131</td><td>146</td></tr><tr><td>15 years - 20 years</td><td>34</td><td>52</td></tr><tr><td>20 years+</td><td>163</td><td>161</td></tr><tr><td>Total</td><td>$1,423</td><td>$1,396</td></tr></table>
During the years ended December 31, 2009, 2008, and 2007, proceeds from the dispositions of securities amounted to $2,571 million, $1,652 million, and $1,583 million, respectively. During the years ended December 31, 2009, 2008, and 2007, gross gains of $80 million, $26 million, and $5 million, respectively, and gross losses of $30 million, $20 million, and $4 million, respectively, were reclassified out of other comprehensive income into earnings. Other-than-temporary impairments and unrealized gains and losses Entergy evaluates unrealized losses at the end of each period to determine whether an other-than-temporary impairment has occurred. Effective January 1, 2009, Entergy adopted an accounting pronouncement providing guidance regarding recognition and presentation of other-than-temporary impairments related to investments in debt securities. The assessment of whether an investment in a debt security has suffered an other-than-temporary impairment is based on whether Entergy has the intent to sell or more likely than not will be required to sell the debt security before recovery of its amortized costs. Further, if Entergy does not expect to recover the entire amortized cost basis of the debt security, an other-than-temporary impairment is considered to have occurred and it is measured by the present value of cash flows expected to be collected less the amortized cost basis (credit loss). For debt securities held as of January 1, 2009 for which an other-than-temporary impairment had previously been recognized but for which assessment under the new guidance indicates this impairment is temporary, Entergy recorded an adjustment to its opening balance of retained earnings of $11.3 million ($6.4 million net-of-tax). Entergy did not have any material other-than-temporary impairments relating to credit losses on debt securities in 2009. The assessment of whether an investment in an equity security has suffered an other-than-temporary impairment continues to be based on a number of factors including, first, whether Entergy has the ability and intent to hold the investment to recover its value, the duration and severity of any losses, and, then, whether it is expected that the investment will recover its value within a reasonable period of time. Entergy's trusts are managed by third parties who operate in accordance with agreements that define investment guidelines and place restrictions on the purchases and sales of investments. Non-Utility Nuclear recorded charges to other income of $86 million in 2009, $50 million in 2008, and $5 million in 2007, resulting from the recognition of the other-than-temporary impairment of certain equity securities held in its decommissioning trust funds. NOTE 18. ENTERGY NEW ORLEANS BANKRUPTCY PROCEEDING As a result of the effects of Hurricane Katrina and the effect of extensive flooding that resulted from levee breaks in and around the New Orleans area, on September 23, 2005, Entergy New Orleans filed a voluntary petition in bankruptcy court seeking reorganization relief under Chapter 11 of the U. S. Bankruptcy Code. On May 7, 2007, the bankruptcy judge entered an order confirming Entergy New Orleans' plan of reorganization. With the receipt of CDBG funds, and the agreement on insurance recovery with one of its excess insurers, Entergy New Orleans waived the conditions precedent in its plan of reorganization and the plan became effective on May 8, 2007. Following are significant terms in Entergy New Orleans' plan of reorganization: As a result of the accounting for uncertain tax positions, the amount of the deferred tax assets reflected in the financial statements is less than the amount of the tax effect of the federal and state net operating loss carryovers, tax credit carryovers, and other tax attributes reflected on income tax returns. Because it is more likely than not that the benefit from certain state net operating and capital loss carryovers will not be utilized, a valuation allowance of $66 million and $13 million has been provided on the deferred tax assets relating to these state net operating and capital loss carryovers, respectively. Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2011 and 2010 are as follows:
<table><tr><td>2011</td><td>Entergy Arkansas</td><td>Entergy Gulf States Louisiana</td><td>Entergy Louisiana</td><td>Entergy Mississippi</td><td>Entergy New Orleans</td><td>Entergy Texas</td><td>System Energy</td></tr><tr><td></td><td colspan="7">(In Thousands)</td></tr><tr><td>Deferred tax liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Plant basis differences - net</td><td>-$1,375,502</td><td>-$1,224,422</td><td>-$1,085,047</td><td>-$608,596</td><td>-$169,538</td><td>-$892,707</td><td>-$505,369</td></tr><tr><td>Regulatory asset for income taxes - net</td><td>-64,204</td><td>-140,644</td><td>-121,388</td><td>-28,183</td><td>70,973</td><td>-59,812</td><td>-87,550</td></tr><tr><td>Power purchase agreements</td><td>94</td><td>3,938</td><td>-1</td><td>2,383</td><td>22</td><td>2,547</td><td>-</td></tr><tr><td>Nuclear decommissioning trusts</td><td>-53,789</td><td>-21,096</td><td>-22,441</td><td>-</td><td>-</td><td>-</td><td>-19,138</td></tr><tr><td>Deferred fuel</td><td>-82,452</td><td>-1,225</td><td>-4,285</td><td>718</td><td>-331</td><td>3,932</td><td>-8</td></tr><tr><td>Other</td><td>-107,558</td><td>-1,532</td><td>-26,373</td><td>-10,193</td><td>-18,319</td><td>-14,097</td><td>-9,333</td></tr><tr><td>Total</td><td>-$1,683,411</td><td>-$1,384,981</td><td>-$1,259,535</td><td>-$643,871</td><td>-$117,193</td><td>-$960,137</td><td>-$621,398</td></tr><tr><td>Deferred tax assets:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Accumulated deferred investment</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>tax credits</td><td>16,843</td><td>31,367</td><td>28,197</td><td>2,437</td><td>592</td><td>6,769</td><td>22,133</td></tr><tr><td>Pension and OPEB</td><td>-75,399</td><td>92,602</td><td>19,866</td><td>-30,390</td><td>-11,713</td><td>-41,964</td><td>-19,593</td></tr><tr><td>Nuclear decommissioning liabilities</td><td>-104,862</td><td>-38,683</td><td>56,399</td><td>-</td><td>-</td><td>-</td><td>-47,360</td></tr><tr><td>Sale and leaseback</td><td>-</td><td>-</td><td>66,801</td><td>-</td><td>-</td><td>-</td><td>150,629</td></tr><tr><td>Provision for regulatory adjustments</td><td>-</td><td>97,608</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Provision for contingencies</td><td>4,167</td><td>90</td><td>3,940</td><td>2,465</td><td>10,121</td><td>2,299</td><td>-</td></tr><tr><td>Unbilled/deferred revenues</td><td>15,222</td><td>-21,918</td><td>-7,108</td><td>8,990</td><td>2,707</td><td>14,324</td><td>-</td></tr><tr><td>Customer deposits</td><td>7,019</td><td>618</td><td>5,699</td><td>1,379</td><td>109</td><td>-</td><td>-</td></tr><tr><td>Rate refund</td><td>11,627</td><td>-</td><td>134</td><td>-</td><td>2</td><td>-3,924</td><td>-</td></tr><tr><td>Net operating loss carryforwards</td><td>-</td><td>-</td><td>39,153</td><td>-</td><td>-</td><td>58,546</td><td>-</td></tr><tr><td>Other</td><td>3,485</td><td>27,392</td><td>18,824</td><td>4,826</td><td>5,248</td><td>37,734</td><td>25,724</td></tr><tr><td>Total</td><td>-121,898</td><td>189,076</td><td>231,905</td><td>-10,293</td><td>7,066</td><td>73,784</td><td>131,533</td></tr><tr><td>Noncurrent accrued taxes (including</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>unrecognized tax benefits)</td><td>-27,718</td><td>-206,752</td><td>-75,750</td><td>-6,271</td><td>-27,859</td><td>39,799</td><td>-165,981</td></tr><tr><td>Accumulated deferred income</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>taxes and taxes accrued</td><td>-$1,833,027</td><td>-$1,402,657</td><td>-$1,103,380</td><td>-$660,435</td><td>-$137,986</td><td>-$846,554</td><td>-$655,846</td></tr></table>
Entergy Mississippi, Inc. Management’s Financial Discussion and Analysis 327 2010 Compared to 2009 Net revenue consists of operating revenues net of: 1) fuel, fuel-related expenses, and gas purchased for resale, 2) purchased power expenses, and 3) other regulatory charges (credits). Following is an analysis of the change in net revenue comparing 2010 to 2009.
<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2009 net revenue</td><td>$536.7</td></tr><tr><td>Volume/weather</td><td>18.9</td></tr><tr><td>Other</td><td>-0.3</td></tr><tr><td>2010 net revenue</td><td>$555.3</td></tr></table>
The volume/weather variance is primarily due to an increase of 1,046 GWh, or 8%, in billed electricity usage in all sectors, primarily due to the effect of more favorable weather on the residential sector. Gross operating revenues, fuel and purchased power expenses, and other regulatory charges (credits) Gross operating revenues increased primarily due to an increase of $22 million in power management rider revenue as the result of higher rates, the volume/weather variance discussed above, and an increase in Grand Gulf rider revenue as a result of higher rates and increased usage, offset by a decrease of $23.5 million in fuel cost recovery revenues due to lower fuel rates. Fuel and purchased power expenses decreased primarily due to a decrease in deferred fuel expense as a result of prior over-collections, offset by an increase in the average market price of purchased power coupled with increased net area demand. Other regulatory charges increased primarily due to increased recovery of costs associated with the power management recovery rider. Other Income Statement Variances 2011 Compared to 2010 Other operation and maintenance expenses decreased primarily due to: x a $5.4 million decrease in compensation and benefits costs primarily resulting from an increase in the accrual for incentive-based compensation in 2010 and a decrease in stock option expense; and x the sale of $4.9 million of surplus oil inventory. The decrease was partially offset by an increase of $3.9 million in legal expenses due to the deferral in 2010 of certain litigation expenses in accordance with regulatory treatment. Taxes other than income taxes increased primarily due to an increase in ad valorem taxes due to a higher 2011 assessment as compared to 2010, partially offset by higher capitalized property taxes as compared with prior year. Depreciation and amortization expenses increased primarily due to an increase in plant in service. Interest expense decreased primarily due to a revision caused by FERC’s acceptance of a change in the treatment of funds received from independent power producers for transmission interconnection projects. Entergy New Orleans, Inc. Management’s Financial Discussion and Analysis 350 Also in addition to the contractual obligations, Entergy New Orleans has $53.7 million of unrecognized tax benefits and interest net of unused tax attributes and payments for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions. See Note 3 to the financial statements for additional information regarding unrecognized tax benefits. The planned capital investment estimate for Entergy New Orleans reflects capital required to support existing business. The estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints, environmental compliance, market volatility, economic trends, changes in project plans, and the ability to access capital. Management provides more information on long-term debt and preferred stock maturities in Notes 5 and 6 and to the financial statements. As an indirect, wholly-owned subsidiary of Entergy Corporation, Entergy New Orleans pays dividends from its earnings at a percentage determined monthly. Entergy New Orleans’s long-term debt indentures contain restrictions on the payment of cash dividends or other distributions on its common and preferred stock. Sources of Capital Entergy New Orleans’s sources to meet its capital requirements include: x internally generated funds; x cash on hand; and x debt and preferred stock issuances. Entergy New Orleans may refinance, redeem, or otherwise retire debt and preferred stock prior to maturity, to the extent market conditions and interest and dividend rates are favorable. Entergy New Orleans’s receivables from the money pool were as follows as of December 31 for each of the following years:
<table><tr><td>2011</td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>(In Thousands)</td></tr><tr><td>$9,074</td><td>$21,820</td><td>$66,149</td><td>$60,093</td></tr></table>
See Note 4 to the financial statements for a description of the money pool. Entergy New Orleans has obtained short-term borrowing authorization from the FERC under which it may borrow through October 2013, up to the aggregate amount, at any one time outstanding, of $100 million. See Note 4 to the financial statements for further discussion of Entergy New Orleans’s short-term borrowing limits. The long-term securities issuances of Entergy New Orleans are limited to amounts authorized by the City Council, and the current authorization extends through July 2012. Entergy Louisiana’s Ninemile Point Unit 6 Self-Build Project In June 2011, Entergy Louisiana filed with the LPSC an application seeking certification that the public necessity and convenience would be served by Entergy Louisiana’s construction of a combined-cycle gas turbine generating facility (Ninemile 6) at its existing Ninemile Point electric generating station. Ninemile 6 will be a nominally-sized 550 MW unit that is estimated to cost approximately $721 million to construct, excluding interconnection and transmission upgrades. Entergy Gulf States Louisiana joined in the application, seeking certification of its purchase under a life-of-unit power purchase agreement of up to 35% of the capacity and energy generated by Ninemile 6. The Ninemile 6 capacity and energy is proposed to be allocated 55% to Entergy Louisiana, 25% to Entergy Gulf States Louisiana, and 20% to Entergy New Orleans. In February 2012 the City Council passed a resolution authorizing Entergy New Orleans to purchase 20% of the Ninemile 6 energy and capacity. If approvals are obtained from the LPSC and other permitting agencies, Ninemile 6 construction is Equity Compensation Plan Information The following table summarizes the equity compensation plan information as of December 31, 2011. Information is included for equity compensation plans approved by the stockholders and equity compensation plans not approved by the stockholders. |
39.78 | considering the year 2006 , what is the percentual fluctuation of the return provided by s&p 500 and the one provided by old peer group? | PERFORMANCE GRAPH The following graph compares the cumulative five-year total return provided shareholders on our Class A common stock relative to the cumulative total returns of the S&P 500 index and two customized peer groups. The old peer group includes IntercontinentalExchange, Inc. , NYSE Euronext and The Nasdaq OMX Group Inc. The new peer group is the same as the old peer group with the addition of CBOE Holdings, Inc. which completed its initial public offering in June 2010. An investment of $100 (with reinvestment of all dividends) is assumed to have been made in our Class A common stock, in the peer groups and the S&P 500 index on December 31, 2005 and its relative performance is tracked through December 31, 2010. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among CME Group Inc. , the S&P 500 Index, an Old Peer Group and a New Peer Group
<table><tr><td></td><td>2006</td><td>2007</td><td>2008</td><td>2009</td><td>2010</td></tr><tr><td>CME Group Inc.</td><td>$139.48</td><td>$188.81</td><td>$58.66</td><td>$96.37</td><td>$93.73</td></tr><tr><td>S&P 500</td><td>115.80</td><td>122.16</td><td>76.96</td><td>97.33</td><td>111.99</td></tr><tr><td>Old Peer Group</td><td>155.58</td><td>190.78</td><td>72.25</td><td>76.11</td><td>87.61</td></tr><tr><td>New Peer Group</td><td>155.58</td><td>190.78</td><td>72.25</td><td>76.11</td><td>87.61</td></tr></table>
*$100 invested on 12/31/05 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright?2011 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved. New Peer Group The stock price performance included in this graph is not necessarily indicative of future stock price performance LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Company has the option to satisfy the repurchases with any combination of cash and/or shares of the Company’s common stock. The Company will have the option to redeem the Notes, in cash, at any time after the fifth anniversary for the initial issue price plus accrued yield to redemption. The Company will pay contingent interest on the Notes during specified six-month periods beginning on April 4, 2006 if the market price of the Notes exceeds specified levels. At November 30, 2003, the carrying value of outstanding Notes, net of unamortized original issue discount, was $261.0 million. At November 30, 2003, the Company had mortgage notes on land and other debt bearing interest at fixed interest rates ranging from 2.9% to 25.0% with an average rate of 8.8%. The notes are due through 2009 and are collateralized by land. At November 30, 2003, the carrying value of the mortgage notes on land and other debt was $73.0 million. The minimum aggregate principal maturities of senior notes and other debts payable during the five years subsequent to November 30, 2003 are as follows: 2004—$21.5 million; 2005—$45.7 million; 2006—$18.4 million; 2007—$4.0 million and 2008—$4.0 million. The remaining principal obligations are due subsequent to November 30, 2008. The Company’s debt arrangements contain certain financial covenants with which the Company was in compliance at November 30, 2003.8. Financial Services The assets and liabilities related to the Company’s financial services operations were as follows:
<table><tr><td></td><td colspan="2"> November 30, </td></tr><tr><td></td><td> 2003 </td><td> 2002 </td></tr><tr><td></td><td colspan="2"> (In thousands)</td></tr><tr><td> Assets:</td><td></td><td></td></tr><tr><td>Cash and receivables, net</td><td>$301,530</td><td>239,893</td></tr><tr><td>Mortgage loans held for sale, net</td><td>542,507</td><td>708,304</td></tr><tr><td>Mortgage loans, net</td><td>30,451</td><td>30,341</td></tr><tr><td>Title plants</td><td>18,215</td><td>15,586</td></tr><tr><td>Investment securities</td><td>28,022</td><td>22,379</td></tr><tr><td>Goodwill, net</td><td>43,503</td><td>34,002</td></tr><tr><td>Other</td><td>46,670</td><td>35,422</td></tr><tr><td>Limited-purpose finance subsidiaries</td><td>5,812</td><td>9,202</td></tr><tr><td></td><td>$1,016,710</td><td>1,095,129</td></tr><tr><td> Liabilities:</td><td></td><td></td></tr><tr><td>Notes and other debts payable</td><td>$734,657</td><td>853,416</td></tr><tr><td>Other</td><td>132,797</td><td>108,770</td></tr><tr><td>Limited-purpose finance subsidiaries</td><td>5,812</td><td>9,202</td></tr><tr><td></td><td>$873,266</td><td>971,388</td></tr></table>
At November 30, 2003, the Financial Services Division had warehouse lines of credit totaling $750 million, which included a $145 million temporary increase that expired in December 2003, to fund its mortgage loan activities. Borrowings under the facilities were $714.4 million and $489.7 million at November 30, 2003 and 2002, respectively, and were collateralized by mortgage loans and receivables on loans sold not yet funded with outstanding principal balances of $742.2 million and $523.8 million, respectively. There are several interest rate pricing options which fluctuate with market rates. The effective interest rate on the facilities at November 30, 2003 and 2002 was 1.7% and 2.3%, respectively. The warehouse lines of credit mature in May 2004 ($250 million) and in October 2005 ($500 million), at which time the Division expects both facilities to be renewed. Additionally, the line of credit maturing in May 2004 includes an incremental $100 million commitment available at each fiscal quarter-end. At November 30, 2003 and 2002, the Division had advances under a conduit funding agreement with a major financial institution amounting to $0.6 million and $343.7 million, respectively. Borrowings under this agreement are collateralized by mortgage loans and had an LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The following table summarizes information about stock options outstanding at November 30, 2003 (adjusted for the January 2004 two-for-one stock split):
<table><tr><td></td><td colspan="3"> Options Outstanding </td><td colspan="2"> Options Exercisable </td></tr><tr><td> Range of Per Share Exercise Prices</td><td> Number Outstanding at November 30, 2003 </td><td> Weighted Average Remaining Contractual Life </td><td> Weighted Average Per Share Exercise Price </td><td> Number Outstanding at November 30, 2003 </td><td> Weighted Average Per Share Exercise Price </td></tr><tr><td>$ 4.02—$ 5.19</td><td>66,176</td><td>2.7 years</td><td>$4.80</td><td>31,126</td><td>$4.88</td></tr><tr><td>$ 7.02—$ 8.38</td><td>1,022,714</td><td>4.3 years</td><td>$7.58</td><td>290,114</td><td>$7.67</td></tr><tr><td>$ 9.25—$12.88</td><td>379,944</td><td>4.0 years</td><td>$9.88</td><td>64,244</td><td>$9.92</td></tr><tr><td>$14.93—$18.88</td><td>1,179,736</td><td>7.2 years</td><td>$16.70</td><td>275,448</td><td>$16.75</td></tr><tr><td>$21.10—$26.32</td><td>3,843,448</td><td>5.4 years</td><td>$24.91</td><td>84,404</td><td>$24.06</td></tr><tr><td>$27.84—$43.16</td><td>168,950</td><td>4.6 years</td><td>$35.73</td><td>—</td><td>$—</td></tr></table>
Employee Stock Ownership/401(k) Plan Prior to 1998, the Employee Stock Ownership/401(k) Plan (the “Plan”) provided shares of stock to employees who had completed one year of continuous service with the Company. During 1998, the Plan was amended to exclude any new shares from being provided to employees. All prior year contributions to employees actively employed on or after October 1, 1998 vested at a rate of 20% per year over a five year period. All active participants in the Plan whose employment terminated prior to October 1, 1998 vested based upon the Plan that was active prior to their termination of employment. Under the 401(k) portion of the Plan, contributions made by employees can be invested in a variety of mutual funds or proprietary funds provided by the Plan trustee. The Company may also make contributions for the benefit of employees. The Company records as compensation expense an amount which approximates the vesting of the contributions to the Employee Stock Ownership portion of the Plan, as well as the Company’s contribution to the 401(k) portion of the Plan. This amount was $9.1 million in 2003, $7.0 million in 2002 and $6.5 million in 2001.13. Deferred Compensation Plan In June 2002, the Company adopted the Lennar Corporation Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”) that allows a selected group of members of management to defer a portion of their salaries and bonuses and up to 100% of their restricted stock. All participant contributions to the Deferred Compensation Plan are vested. Salaries and bonuses that are deferred under the Deferred Compensation Plan are credited with earnings or losses based on investment decisions made by the participants. The cash contributions to the Deferred Compensation Plan are invested by the Company in various investment securities that are classified as trading. Restricted stock is deferred under the Deferred Compensation Plan by surrendering the restricted stock in exchange for the right to receive in the future a number of shares equal to the number of restricted shares that are surrendered. The surrender is reflected as a reduction in stockholders’ equity equal to the value of the restricted stock when it was issued, with an offsetting increase in stockholders’ equity to reflect a deferral of the compensation expense related to the surrendered restricted stock. Changes in the value of the shares that will be issued in the future are not reflected in the financial statements. As of November 30, 2003, approximately 534,000 Class A shares and 53,400 Class B shares of restricted stock (adjusted for the April 2003 10% Class B stock distribution and January 2004 two-for-one stock split) had been surrendered in exchange for rights under the Deferred Compensation Plan, resulting in a reduction in stockholders’ equity of $4.9 million fully offset by an increase in stockholders’ equity to reflect the deferral of compensation in that amount. Shares that the Company is obligated to issue in the future under the Deferred Compensation Plan are treated as outstanding shares in both the Company’s basic and diluted earnings per share calculations for the years ended November 30, 2003 and 2002. LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 14. Financial Instruments The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at November 30, 2003 and 2002, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash, receivables and accounts payable, which had fair values approximating their carrying values.
<table><tr><td></td><td colspan="4">November 30,</td></tr><tr><td></td><td colspan="2">2003</td><td colspan="2">2002</td></tr><tr><td></td><td>Carrying Amount</td><td>Fair Value</td><td>Carrying Amount</td><td>Fair Value</td></tr><tr><td></td><td colspan="4">(In thousands)</td></tr><tr><td> ASSETS</td><td></td><td></td><td></td><td></td></tr><tr><td> Homebuilding:</td><td></td><td></td><td></td><td></td></tr><tr><td>Investments—trading</td><td>$6,859</td><td>6,859</td><td>—</td><td>—</td></tr><tr><td> Financial services:</td><td></td><td></td><td></td><td></td></tr><tr><td>Mortgage loans held for sale, net</td><td>$542,507</td><td>542,507</td><td>708,304</td><td>708,304</td></tr><tr><td>Mortgage loans, net</td><td>30,451</td><td>29,355</td><td>30,341</td><td>29,666</td></tr><tr><td>Investments held-to-maturity</td><td>28,022</td><td>28,021</td><td>22,379</td><td>22,412</td></tr><tr><td>Limited-purpose finance subsidiaries—collateral for bonds and notes payable</td><td>5,812</td><td>6,129</td><td>9,202</td><td>9,703</td></tr><tr><td> LIABILITIES</td><td></td><td></td><td></td><td></td></tr><tr><td> Homebuilding:</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior notes and other debts payable</td><td>$1,552,217</td><td>1,878,830</td><td>1,585,309</td><td>1,779,705</td></tr><tr><td> Financial services:</td><td></td><td></td><td></td><td></td></tr><tr><td>Notes and other debts payable</td><td>$734,657</td><td>734,657</td><td>853,416</td><td>853,416</td></tr><tr><td>Limited-purpose finance subsidiaries—bonds and notes payable</td><td>5,812</td><td>6,129</td><td>9,202</td><td>9,703</td></tr><tr><td> OTHER FINANCIAL INSTRUMENTS</td><td></td><td></td><td></td><td></td></tr><tr><td> Homebuilding:</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate swaps</td><td>$-33,696</td><td>-33,696</td><td>-39,256</td><td>-39,256</td></tr><tr><td> Financial services assets (liabilities):</td><td></td><td></td><td></td><td></td></tr><tr><td>Commitments to originate loans</td><td>$-229</td><td>-229</td><td>-717</td><td>-717</td></tr><tr><td>Forward commitments to sell loans and option contracts</td><td>-1,120</td><td>-1,120</td><td>1,430</td><td>1,430</td></tr></table>
The following methods and assumptions are used by the Company in estimating fair values: Homebuilding—Investments classified as trading (included in other assets): The fair value is based on quoted market prices. Senior notes and other debts payable: The fair value of fixed rate borrowings is based on quoted market prices. Variable rate borrowings are tied to market indices and therefore approximate fair value. Interest rate swaps: The fair value is based on dealer quotations and generally represents an estimate of the amount the Company would pay or receive to terminate the agreement at the reporting date. Financial services—The fair values are based on quoted market prices, if available. The fair values for instruments which do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. The Company utilizes interest rate swap agreements to manage interest costs and hedge against risks associated with changing interest rates. Counterparties to these agreements are major financial institutions. Credit loss from counterparty non-performance is not anticipated. A majority of the Company’s available variable rate borrowings are based on the London Interbank Offered Rate (“LIBOR”) index. At November 30, 2003, the |
10.07937 | What is the growing rate of Other revenues in the year with the most Transmission revenues? | Ball Corporation and Subsidiaries Notes to Consolidated Financial Statements 16. Stock-Based Compensation Programs (continued) To encourage certain senior management employees and outside directors to invest in Ball stock, Ball adopted a deposit share program in March 2001 (subsequently amended and restated in April 2004) that matches purchased shares with restricted shares. In general, restrictions on the matching shares lapse at the end of four years from date of grant, or earlier in stages if established share ownership guidelines are met, assuming the relevant qualifying purchased shares are not sold or transferred prior to that time. Grants under the plan are accounted for as equity awards and compensation expense is recorded based upon the closing market price of the shares at the grant date. The company recorded $0.4 million, $1.6 million and $3.8 million of expense in connection with this program in 2010, 2009 and 2008, respectively. The company’s board of directors grants performance-contingent restricted stock units to key employees, which will cliffvest if the company’s return on average invested capital during a 36-month performance period is equal to or exceeds the company’s cost of capital. If the performance goals are not met, the shares will be forfeited. Current assumptions are that the performance targets will be met and, accordingly, grants under the plan are being accounted for as equity awards and compensation expense is recorded based upon the closing market price of the shares at the grant date. On a quarterly basis, the company reassesses the probability of the goals being met and adjusts compensation expense as appropriate. No such adjustment was considered necessary at the end of 2010 for any grants. Restricted stock units granted under this program included 362,300 units in January 2010, 386,900 units in January 2009 and 493,300 units in April 2008. The expense associated with the performance-contingent grants totaled $9.5 million, $9.9 million and $6.2 million in 2010, 2009 and 2008, respectively. For the years ended December 31, 2010, 2009 and 2008, the company recognized in selling, general and administrative expenses pretax expense of $24.4 million ($14.9 million after tax), $26.5 million ($16.0 million after tax) and $20.5 million ($12.4 million after tax), respectively, for share-based compensation arrangements. At December 31, 2010, there was $35.9 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements. This cost is expected to be recognized in earnings over a weighted average period of 2.3 years. In connection with the employee stock purchase plan, the company contributes 20 percent of up to $500 of each participating employee’s monthly payroll deduction toward the purchase of Ball Corporation common stock. Company contributions for this plan were $3.2 million in 2010, $3.0 million in 2009 and $3.2 million in 2008.17. Earnings Per Share
<table><tr><td></td><td colspan="3">Years ended December 31,</td></tr><tr><td>($ in millions, except per share amounts; shares in thousands)</td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Diluted Earnings per Share(a):</td><td></td><td></td><td></td></tr><tr><td>Net earnings attributable to Ball Corporation</td><td>$468.0</td><td>$387.9</td><td>$319.5</td></tr><tr><td>Weighted average common shares</td><td>180,746</td><td>187,572</td><td>191,714</td></tr><tr><td>Effect of dilutive securities</td><td>2,792</td><td>2,406</td><td>2,324</td></tr><tr><td>Weighted average shares applicable to diluted earnings per share</td><td>183,538</td><td>189,978</td><td>194,038</td></tr><tr><td>Basic earnings per share</td><td>$2.59</td><td>$2.07</td><td>$1.67</td></tr><tr><td>Diluted earnings per share</td><td>$2.55</td><td>$2.04</td><td>$1.65</td></tr></table>
(a) Shares have been retrospectively adjusted for the two-for-one stock split that was effective on February 15, 2011. Certain options were excluded from the diluted earnings per share calculation because they were anti-dilutive (i. e. , the sum of the proceeds, including the unrecognized compensation and windfall tax benefits, exceeded the average closing stock price for the period). The options excluded totaled 1,683,300 in 2010; 5,727,828 in 2009; and 4,969,158 in 2008. Information needed to compute basic earnings per share is provided in the consolidated statements of earnings. Senior Notes Under the terms of the note purchase agreement for GMO's Series A, B and C Senior Notes, GMO is required to maintain a consolidated indebtedness to consolidated capitalization ratio, as defined in the agreement, not greater than 0.65 to 1.00. In addition, GMO's priority debt, as defined in the agreement, cannot exceed 15% of consolidated tangible net worth, as defined in the agreement. At December 31, 2018, GMO was in compliance with these covenants. In March 2018, KCP&L issued, at a discount, $300.0 million of 4.20% unsecured Senior Notes, maturing in 2048. KCP&L also repaid its $350.0 million of 6.375% unsecured Senior Notes at maturity in March 2018. As a result of the consummation of the merger transaction, a change in control provision in GMO's Series A, B and C Senior Notes was triggered that allowed holders a one-time option to elect for early repayment of their notes at par value, plus accrued interest. Several holders of GMO's Series A and B Senior Notes elected this option and in July 2018, GMO redeemed $89.0 million of its Series A Senior Notes and $15.0 million of its Series B Senior Notes. Scheduled Maturities Evergy's, Westar Energy's and KCP&L's long-term debt maturities and the long-term debt maturities of VIEs for the next five years are detailed in the following table.
<table><tr><td></td><td>2019</td><td>2020</td><td>2021</td><td>2022</td><td>2023</td></tr><tr><td></td><td colspan="5">(millions)</td></tr><tr><td>Evergy<sup>(a)</sup></td><td>$701.1</td><td>$251.1</td><td>$432.0</td><td>$287.5</td><td>$439.5</td></tr><tr><td>Westar Energy<sup>(a)</sup></td><td>300.0</td><td>250.0</td><td>—</td><td>—</td><td>50.0</td></tr><tr><td>KCP&L</td><td>400.0</td><td>—</td><td>—</td><td>—</td><td>379.5</td></tr><tr><td>VIEs</td><td>30.3</td><td>32.3</td><td>18.8</td><td>—</td><td>—</td></tr></table>
13. FAIR VALUE MEASUREMENTS Values of Financial Instruments GAAP establishes a hierarchical framework for disclosing the transparency of the inputs utilized in measuring assets and liabilities at fair value. Management's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of assets and liabilities within the fair value hierarchy levels. In addition, the Evergy Companies measure certain investments that do not have a readily determinable fair value at NAV, which are not included in the fair value hierarchy. Further explanation of these levels and NAV is summarized below. Level 1 – Quoted prices are available in active markets for identical assets or liabilities. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on public exchanges. Level 2 – Pricing inputs are not quoted prices in active markets, but are either directly or indirectly observable. The types of assets and liabilities included in Level 2 are certain marketable debt securities, financial instruments traded in less than active markets or other financial instruments priced with models using highly observable inputs. Level 3 – Significant inputs to pricing have little or no transparency. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation. NAV - Investments that do not have a readily determinable fair value are measured at NAV. These investments do not consider the observability of inputs and, therefore, they are not included within the fair value hierarchy. The Evergy Companies include in this category investments in private equity, real estate and alternative investment funds that do not have a readily determinable fair value. The underlying alternative investments include collateralized debt obligations, mezzanine debt and a variety of other investments. Management believes that utility gross margin provides a meaningful basis for evaluating the Evergy Companies' operations across periods compared with operating revenues because utility gross margin excludes the revenue effect of fluctuations in these expenses. Utility gross margin is used internally to measure performance against budget and in reports for management and the Evergy Board. The Evergy Companies' definition of utility gross margin may differ from similar terms used by other companies. The following tables summarize Evergy's utility gross margin and MWhs sold.
<table><tr><td>Utility Gross Margin</td><td>2018</td><td>Change</td><td>2017</td><td>Change</td><td>2016</td></tr><tr><td>Retail revenues</td><td colspan="5">(millions)</td></tr><tr><td>Residential</td><td>$1,578.8</td><td>$777.5</td><td>$801.3</td><td>$-23.9</td><td>$825.2</td></tr><tr><td>Commercial</td><td>1,356.4</td><td>644.7</td><td>711.7</td><td>-16.9</td><td>728.6</td></tr><tr><td>Industrial</td><td>527.8</td><td>114.9</td><td>412.9</td><td>7.1</td><td>405.8</td></tr><tr><td>Other retail revenues</td><td>30.6</td><td>7.8</td><td>22.8</td><td>0.8</td><td>22.0</td></tr><tr><td>Total electric retail</td><td>3,493.6</td><td>1,544.9</td><td>1,948.7</td><td>-32.9</td><td>1,981.6</td></tr><tr><td>Wholesale revenues</td><td>404.4</td><td>73.2</td><td>331.2</td><td>14.9</td><td>316.3</td></tr><tr><td>Transmission revenues</td><td>308.1</td><td>23.3</td><td>284.8</td><td>26.1</td><td>258.7</td></tr><tr><td>Other revenues</td><td>69.8</td><td>63.5</td><td>6.3</td><td>0.8</td><td>5.5</td></tr><tr><td>Operating revenues</td><td>4,275.9</td><td>1,704.9</td><td>2,571.0</td><td>8.9</td><td>2,562.1</td></tr><tr><td>Fuel and purchased power</td><td>-1,078.7</td><td>-537.2</td><td>-541.5</td><td>-32.0</td><td>-509.5</td></tr><tr><td>SPP network transmission costs</td><td>-259.9</td><td>-12.0</td><td>-247.9</td><td>-15.1</td><td>-232.8</td></tr><tr><td>Utility gross margin<sup>(a)</sup></td><td>$2,937.3</td><td>$1,155.7</td><td>$1,781.6</td><td>$-38.2</td><td>$1,819.8</td></tr></table>
(a) Utility gross margin is a non-GAAP financial measure. See explanation of utility gross margin above.
<table><tr><td>MWh Sales</td><td>2018</td><td>Change</td><td>2017</td><td>Change</td><td>2016</td></tr><tr><td>Retail MWh Sales</td><td colspan="5">(thousands)</td></tr><tr><td>Residential</td><td>12,478</td><td>6,315</td><td>6,163</td><td>-271</td><td>6,434</td></tr><tr><td>Commercial</td><td>14,129</td><td>6,761</td><td>7,368</td><td>-176</td><td>7,544</td></tr><tr><td>Industrial</td><td>7,426</td><td>1,737</td><td>5,689</td><td>190</td><td>5,499</td></tr><tr><td>Other retail revenues</td><td>110</td><td>37</td><td>73</td><td>-4</td><td>77</td></tr><tr><td>Total electric retail</td><td>34,143</td><td>14,850</td><td>19,293</td><td>-261</td><td>19,554</td></tr><tr><td>Wholesale revenues</td><td>13,811</td><td>3,465</td><td>10,346</td><td>2,047</td><td>8,299</td></tr><tr><td>Operating revenues</td><td>47,954</td><td>18,315</td><td>29,639</td><td>1,786</td><td>27,853</td></tr></table>
Evergy's utility gross margin increased $1,155.7 million in 2018 compared to 2017 driven by: ? an $1,181.5 million increase due to the inclusion of KCP&L's and GMO's utility gross margin beginning in June 2018; and ? a $75.0 million increase primarily due to higher Westar Energy retail sales driven by warmer spring and summer weather and colder winter weather. For 2018 compared to 2017, cooling degree days increased 31% and heating degree days increased 23%; partially offset by ? a $69.8 million provision for rate refund recorded at Westar Energy for the change in the corporate income tax rate caused by the passage of the TCJA. See Note 19 to the consolidated financial statements for additional information; and ? a $31.0 million reduction in revenue recorded at Westar Energy for one-time and annual bill credits as a result of conditions in the KCC merger order. See Note 2 to the consolidated financial statements for additional information. Evergy's utility gross margin decreased $38.2 million in 2017 compared to 2016 primarily due to lower Westar Energy retail sales driven by milder weather. For 2017 compared to 2016, cooling degree days decreased 13%. The following table summarizes the regulatory short-term and long-term debt financing authorizations for Westar Energy, KGE, KCP&L and GMO and the remaining amount available under these authorizations as of December 31, 2018.
<table><tr><td>Type of Authorization</td><td>Commission</td><td>Expiration Date</td><td>Authorization Amount</td><td>Available Under Authorization</td></tr><tr><td>Westar Energy & KGE</td><td></td><td></td><td colspan="2">(in millions)</td></tr><tr><td>Short-Term Debt</td><td>FERC</td><td>December 2020</td><td>$1,250.0</td><td>$838.3</td></tr><tr><td>KCP&L</td><td></td><td></td><td colspan="2"></td></tr><tr><td>Short-Term Debt</td><td>FERC</td><td>December 2020</td><td>$1,250.0</td><td>$1,073.1</td></tr><tr><td>Long-Term Debt</td><td>MPSC</td><td>September 2019</td><td>$750.0</td><td>$450.0</td></tr><tr><td>GMO</td><td></td><td></td><td></td><td></td></tr><tr><td>Short-Term Debt</td><td>FERC</td><td>December 2020</td><td>$750.0</td><td>$600.0</td></tr><tr><td>Long-Term Debt</td><td>FERC</td><td>December 2020</td><td>$100.0</td><td>$100.0</td></tr></table>
In addition to the above regulatory authorizations, the Westar Energy, KGE and KCP&L mortgages each contain provisions restricting the amount of FMBs that can be issued by each entity. Westar Energy, KGE and KCP&L must comply with these restrictions prior to the issuance of additional FMBs, general mortgage bonds or other secured indebtedness. Under the Westar Energy mortgage, the issuance of bonds is subject to limitations based on the amount of bondable property additions. In addition, so long as any bonds issued prior to January 1, 1997, remain outstanding, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless Westar Energy’s unconsolidated net earnings available for interest, depreciation and property retirement (which as defined, does not include earnings or losses attributable to the ownership of securities of subsidiaries), for a period of 12 consecutive months within 15 months preceding the issuance, are not less than the greater of twice the annual interest charges on or 10% of the principal amount of all FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2018, $344.5 million principal amount of additional FMBs could be issued under the most restrictive provisions in the mortgage, except in connection with certain refundings. Under the KGE mortgage, the amount of FMBs authorized is limited to a maximum of $3.5 billion and the issuance of bonds is subject to limitations based on the amount of bondable property additions. In addition, the mortgage prohibits additional FMBs from being issued, except in connection with certain refundings, unless KGE’s net earnings before income taxes and before provision for retirement and depreciation of property for a period of 12 consecutive months within 15 months preceding the issuance are not less than either two and one-half times the annual interest charges on or 10% of the principal amount of all KGE FMBs outstanding after giving effect to the proposed issuance. As of December 31, 2018, KGE had sufficient capacity under the most restrictive provisions in the mortgage to meet its near term financing and refinancing needs. Under the KCP&L mortgage, additional KCP&L mortgage bonds may be issued on the basis of property additions or retired bonds. As of December 31, 2018, KCP&L had sufficient capacity under the most restrictive provisions in the mortgage to meet its near term financing and refinancing needs. Cash and Cash Equivalents At December 31, 2018, Evergy had approximately $160.3 million of cash and cash equivalents on hand. Under the Amended Merger Agreement, Great Plains Energy was required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet at the closing of the merger with Westar Energy. In 2018, Evergy primarily utilized this excess cash to repurchase approximately $1,042 million of common stock. Evergy anticipates that its remaining excess cash will also be returned to shareholders through the repurchase of common stock. Management’s Discussion and Analysis of Financial Condition and Results of Operations – (continued) (Amounts in Millions, Except Per Share Amounts) Financing Activities Net cash used in financing activities during 2015 primarily related to the repurchase of our common stock and payment of dividends. We repurchased 13.6 shares of our common stock for an aggregate cost of $285.2, including fees, and made dividend payments of $195.5 on our common stock. Net cash used in financing activities during 2014 primarily related to the purchase of long-term debt, the repurchase of our common stock and payment of dividends. We redeemed all $350.0 in aggregate principal amount of our 6.25% Notes, repurchased 14.9 shares of our common stock for an aggregate cost of $275.1, including fees, and made dividend payments of $159.0 on our common stock. This was offset by the issuance of $500.0 in aggregate principal amount of our 4.20% Notes. Foreign Exchange Rate Changes The effect of foreign exchange rate changes on cash and cash equivalents included in the Consolidated Statements of Cash Flows resulted in a decrease of $156.1 in 2015. The decrease was primarily a result of the U. S. Dollar being stronger than several foreign currencies, including the Australian Dollar, Brazilian Real, Canadian Dollar, Euro and South African Rand as of December 31, 2015 compared to December 31, 2014. The effect of foreign exchange rate changes on cash and cash equivalents included in the Consolidated Statements of Cash Flows resulted in a decrease of $101.0 in 2014. The decrease was primarily a result of the U. S. Dollar being stronger than several foreign currencies, including the Australian Dollar, Brazilian Real, Canadian Dollar and Euro as of December 31, 2014 compared to December 31, 2013. |
179 | what is the total amount amortized to revenue in the last three years , ( in millions ) ? | Entergy Corporation and Subsidiaries Notes to Financial Statements
<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>Plant (including nuclear fuel)</td><td>$727</td></tr><tr><td>Decommissioning trust funds</td><td>252</td></tr><tr><td>Other assets</td><td>41</td></tr><tr><td>Total assets acquired</td><td>1,020</td></tr><tr><td>Purchased power agreement (below market)</td><td>420</td></tr><tr><td>Decommissioning liability</td><td>220</td></tr><tr><td>Other liabilities</td><td>44</td></tr><tr><td>Total liabilities assumed</td><td>684</td></tr><tr><td>Net assets acquired</td><td>$336</td></tr></table>
Subsequent to the closing, Entergy received approximately $6 million from Consumers Energy Company as part of the Post-Closing Adjustment defined in the Asset Sale Agreement. The Post-Closing Adjustment amount resulted in an approximately $6 million reduction in plant and a corresponding reduction in other liabilities. For the PPA, which was at below-market prices at the time of the acquisition, Non-Utility Nuclear will amortize a liability to revenue over the life of the agreement. The amount that will be amortized each period is based upon the difference between the present value calculated at the date of acquisition of each year's difference between revenue under the agreement and revenue based on estimated market prices. Amounts amortized to revenue were $53 million in 2009, $76 million in 2008, and $50 million in 2007. The amounts to be amortized to revenue for the next five years will be $46 million for 2010, $43 million for 2011, $17 million in 2012, $18 million for 2013, and $16 million for 2014. NYPA Value Sharing Agreements Non-Utility Nuclear's purchase of the FitzPatrick and Indian Point 3 plants from NYPA included value sharing agreements with NYPA. In October 2007, Non-Utility Nuclear and NYPA amended and restated the value sharing agreements to clarify and amend certain provisions of the original terms. Under the amended value sharing agreements, Non-Utility Nuclear will make annual payments to NYPA based on the generation output of the Indian Point 3 and FitzPatrick plants from January 2007 through December 2014. Non-Utility Nuclear will pay NYPA $6.59 per MWh for power sold from Indian Point 3, up to an annual cap of $48 million, and $3.91 per MWh for power sold from FitzPatrick, up to an annual cap of $24 million. The annual payment for each year's output is due by January 15 of the following year. Non-Utility Nuclear will record its liability for payments to NYPA as power is generated and sold by Indian Point 3 and FitzPatrick. An amount equal to the liability will be recorded to the plant asset account as contingent purchase price consideration for the plants. In 2009, 2008, and 2007, Non-Utility Nuclear recorded $72 million as plant for generation during each of those years. This amount will be depreciated over the expected remaining useful life of the plants. In August 2008, Non-Utility Nuclear entered into a resolution of a dispute with NYPA over the applicability of the value sharing agreements to its FitzPatrick and Indian Point 3 nuclear power plants after the planned spin-off of the Non-Utility Nuclear business. Under the resolution, Non-Utility Nuclear agreed not to treat the separation as a "Cessation Event" that would terminate its obligation to make the payments under the value sharing agreements. As a result, after the spin-off transaction, Enexus will continue to be obligated to make payments to NYPA under the amended and restated value sharing agreements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Dollar amounts in thousands except per share data) Note 11—Shareholders’ Equity Share Data: A summary of preferred and common share activity is as follows:
<table><tr><td></td><td colspan="2"> Preferred Stock </td><td colspan="2">Common Stock</td></tr><tr><td></td><td> Issued </td><td> Treasury Stock </td><td>Issued</td><td>Treasury Stock</td></tr><tr><td>2004:</td><td></td><td></td><td></td><td></td></tr><tr><td>Balance at January 1, 2004</td><td>-0-</td><td>-0-</td><td>113,783,658</td><td>-1,069,053</td></tr><tr><td>Issuance of common stock due to exercise of stock options</td><td></td><td></td><td></td><td>763,592</td></tr><tr><td>Treasury stock acquired</td><td></td><td></td><td></td><td>-5,534,276</td></tr><tr><td>Retirement of treasury stock</td><td></td><td></td><td>-5,000,000</td><td>5,000,000</td></tr><tr><td>Balance at December 31, 2004</td><td>-0-</td><td>-0-</td><td>108,783,658</td><td>-839,737</td></tr><tr><td>2005:</td><td></td><td></td><td></td><td></td></tr><tr><td>Issuance of common stock due to exercise of stock options</td><td></td><td></td><td>91,090</td><td>5,835,740</td></tr><tr><td>Treasury stock acquired</td><td></td><td></td><td></td><td>-10,301,852</td></tr><tr><td>Retirement of treasury stock</td><td></td><td></td><td>-4,000,000</td><td>4,000,000</td></tr><tr><td>Balance at December 31, 2005</td><td>-0-</td><td>-0-</td><td>104,874,748</td><td>-1,305,849</td></tr><tr><td>2006:</td><td></td><td></td><td></td><td></td></tr><tr><td>Grants of restricted stock</td><td></td><td></td><td></td><td>28,000</td></tr><tr><td>Issuance of common stock due to exercise of stock options</td><td></td><td></td><td></td><td>507,259</td></tr><tr><td>Treasury stock acquired</td><td></td><td></td><td></td><td>-5,989,531</td></tr><tr><td>Retirement of treasury stock</td><td></td><td></td><td>-5,000,000</td><td>5,000,000</td></tr><tr><td>Balance at December 31, 2006</td><td>-0-</td><td>-0-</td><td>99,874,748</td><td>-1,760,121</td></tr></table>
Acquisition of Common Shares: Torchmark shares are acquired from time to time through open market purchases under the Torchmark stock repurchase program when it is believed to be the best use of Torchmark’s excess cash flows. Share repurchases under this program were 5.6 million shares at a cost of $320 million in 2006, 5.6 million shares at a cost of $300 million in 2005, and 5.2 million shares at a cost of $268 million in 2004. When stock options are exercised, proceeds from the exercises are generally used to repurchase approximately the number of shares available with those funds, in order to reduce dilution. Shares repurchased for dilution purposes were 415 thousand shares at a cost of $24 million in 2006, 4.7 million shares costing $255 million in 2005, and 313 thousand shares at a cost of $17 million in 2004. Retirement of Treasury Stock: Torchmark retired 5 million shares of treasury stock in December, 2006, 4 million in 2005, and 5 million in 2004. Restrictions: Restrictions exist on the flow of funds to Torchmark from its insurance subsidiaries. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. Dividends from insurance subsidiaries of Torchmark are limited to the greater of statutory net gain from operations, excluding capital gains and losses, on an annual noncumulative basis, or 10% of surplus, in the absence of special regulatory approval. Additionally, insurance company distributions are generally not permitted in excess of statutory surplus. Subsidiaries are also subject to certain minimum capital requirements. In 2006, subsidiaries of Torchmark paid $428 million in dividends to the parent company. During 2007, a maximum amount of $434 million is expected to be available to Torchmark from subsidiaries without regulatory approval. PART I ITEM 1. BUSINESS General SL Green Realty Corp. is a self-managed real estate investment trust, or REIT, with in-house capabilities in property management, acquisitions, financing, development, construction and leasing. We were formed in June 1997 for the purpose of continuing the commercial real estate business of S. L. Green Properties, Inc. , our predecessor entity. S. L. Green Properties, Inc. , which was founded in 1980 by Stephen L. Green, the Company's Chairman, had been engaged in the business of owning, managing, leasing, acquiring and repositioning office properties in Manhattan, a borough of New York City. Reckson Associates Realty Corp. , or Reckson, and Reckson Operating Partnership, L. P. , or ROP, are wholly-owned subsidiaries of SL Green Operating Partnership, L. P. , the Operating Partnership. As of December 31, 2013, we owned the following interests in commercial office properties in the New York Metropolitan area, primarily in midtown Manhattan. Our investments in the New York Metropolitan area also include investments in Brooklyn, Long Island, Westchester County, Connecticut and Northern New Jersey, which are collectively known as the Suburban properties:
<table><tr><td>Location</td><td>Ownership</td><td>Number ofBuildings</td><td>Square Feet</td><td>Weighted AverageOccupancy-1</td></tr><tr><td>Manhattan</td><td>Consolidated properties</td><td>23</td><td>17,306,045</td><td>94.5%</td></tr><tr><td></td><td>Unconsolidated properties</td><td>9</td><td>5,934,434</td><td>96.6%</td></tr><tr><td>Suburban</td><td>Consolidated properties</td><td>26</td><td>4,087,400</td><td>79.8%</td></tr><tr><td></td><td>Unconsolidated properties</td><td>4</td><td>1,222,100</td><td>87.2%</td></tr><tr><td></td><td></td><td>62</td><td>28,549,979</td><td>92.5%</td></tr></table>
(1) The weighted average occupancy represents the total occupied square feet divided by total available rentable square feet. As of December 31, 2013, our Manhattan office properties were comprised of 17 fee owned buildings, including ownership in commercial condominium units, and six leasehold owned buildings. As of December 31, 2013, our Suburban office properties were comprised of 25 fee owned buildings and one leasehold building. As of December 31, 2013, we also held fee owned interests in nine unconsolidated Manhattan office properties and four unconsolidated Suburban office properties. We refer to our consolidated and unconsolidated Manhattan and Suburban office properties collectively as our Portfolio. As of December 31, 2013, we also owned investments in 16 retail properties encompassing approximately 875,800 square feet, 20 development buildings encompassing approximately 3,230,800 square feet, four residential buildings encompassing 801 units (approximately 719,900 square feet) and two land interests encompassing approximately 961,400 square feet. The Company also has ownership interests in 28 west coast office properties encompassing 52 buildings totaling approximately 3,654,300 square feet. In addition, we manage two office buildings owned by third parties and affiliated companies encompassing approximately 626,400 square feet. As of December 31, 2013, we also held debt and preferred equity investments with a book value of $1.3 billion. Our corporate offices are located in midtown Manhattan at 420 Lexington Avenue, New York, New York 10170. As of December 31, 2013, our corporate staff consisted of approximately 278 persons, including 182 professionals experienced in all aspects of commercial real estate. We can be contacted at (212) 594-2700. We maintain a website at www. slgreen. com. On our website, you can obtain, free of charge, a copy of our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after we file such material electronically with, or furnish it to, the Securities and Exchange Commission, or the SEC. We have also made available on our website our audit committee charter, compensation committee charter, nominating and corporate governance committee charter, code of business conduct and ethics and corporate governance principles. We do not intend for information contained on our website to be part of this annual report on Form 10-K. You can also read and copy any materials we file with the SEC at its Public Reference Room at 100 F Street, NE, Washington, DC 20549 (1-800-SEC-0330). The SEC maintains an Internet site (http://www. sec. gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Operating Profit We consider operating profit to be an important measure for evaluating our operating performance and we evaluate operating profit for each of the reportable business segments in which we operate. We internally manage our operations by reference to operating profit with economic resources allocated primarily based on each segment’s contribution to operating profit. Segment operating profit is defined as operating profit before Corporate Unallocated. Segment operating profit is not, however, a measure of financial performance under U. S. GAAP, and may not be defined and calculated by other companies in the same manner. The table below reconciles segment operating profit to total operating profit: |
-0.03219 | what was the percentage change in weighted average shares outstanding for diluted net earnings per share from 2006 to 2007? | ABIOMED, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements—(Continued) Note 12. Stock Award Plans and Stock Based Compensation (Continued) Restricted Stock The following table summarizes restricted stock activity for the fiscal year ended March 31, 2009:
<table><tr><td></td><td colspan="2"> March 31, 2009</td></tr><tr><td></td><td>Number of Shares (in thousands)</td><td> Grant Date Fair Value</td></tr><tr><td>Restricted stock awards at March 31, 2008</td><td>54</td><td>$11.52</td></tr><tr><td>Granted</td><td>666</td><td>16.75</td></tr><tr><td>Vested</td><td>-167</td><td>14.65</td></tr><tr><td>Forfeited</td><td>-73</td><td>17.53</td></tr><tr><td>Restricted stock awards at March 31, 2009</td><td>480</td><td>$16.77</td></tr></table>
The remaining unrecognized compensation expense for restricted stock awards at March 31, 2009 was $4.6 million. The weighted average remaining contractual life for restricted stock awards at March 31, 2009 and 2008 was 1.8 and 2.4 years, respectively. In May 2008, 260,001 shares of restricted stock were issued to certain executive officers and certain members of senior management of the Company, of which 130,002 of these shares vest upon achievement of a prescribed performance milestone. In September 2008, the Company met the prescribed performance milestone, and all of these performance-based shares vested. In connection with the vesting of these shares, these employees paid withholding taxes due by returning 39,935 shares valued at $0.7 million. These shares have been recorded as treasury stock as of March 31, 2009. The remaining 129,999 of the restricted shares award vest ratably over four years from the grant date. The stock compensation expense for the restricted stock awards is recognized on a straight-line basis over the vesting period, based on the probability of achieving the performance milestones. In August 2008, 406,250 shares of restricted stock were issued to certain executive officers and certain members of senior management of the Company, all of which could vest upon achievement of certain prescribed performance milestones. In March 2009, the Company met a prescribed performance milestone, and a portion of these performance-based shares vested. The remaining stock compensation expense for the restricted stock awards is being recognized on a straight-line basis over the vesting period through March 31, 2011 based on the probability of achieving the performance milestones. The cumulative effects of changes in the probability of achieving the milestones will be recorded in the period in which the changes occur. During the year ended March 31, 2008, 60,000 shares of restricted stock were issued to certain executive officers of the Company that vest on the third anniversary of the date of grant. The stock compensation expense for the restricted stock awards is recognized on a straight-line basis over the vesting period. Employee Stock Purchase Plan In March 1988, the Company adopted the 1988 Employee Stock Purchase Plan (“the Purchase Plan” or “ESPP”), as amended. Under the Purchase Plan, eligible employees, including officers and directors, who have completed three months of employment with the Company or its subsidiaries who elect to participate in the Purchase plan instruct the Company to withhold a specified amount from each payroll period during a six-month payment period (the periods April 1—September 30 and October 1—March 31). On the last business day of each payment period, the amount withheld is used to purchase common stock at an exercise price equal to 85% of the lower of its market price on the first business day or the last business day of the payment period. Up to 500,000 shares of common stock may be issued under the Purchase Plan, of which 163,245 shares are available for future issuance as of March 31, 2009. During the years ended March 31, 2009, 2008 and 2007, 45,823, 23,930, and 27,095 shares of common stock, respectively, were sold pursuant to the Purchase Plan. PAR T I I Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock is traded on the New York Stock Exchange under the ticker symbol BBY. The table below sets forth the high and low sales prices of our common stock as reported on the New York Stock Exchange — Composite Index during the periods indicated. The stock prices below have been revised to reflect a three-for-two stock split effected on August 3, 2005.
<table><tr><td> </td><td colspan="2"> Sales Price</td></tr><tr><td> </td><td> High</td><td> Low</td></tr><tr><td><i>Fiscal 2006</i></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$36.99</td><td>$31.93</td></tr><tr><td>Second Quarter</td><td>53.17</td><td>36.20</td></tr><tr><td>Third Quarter</td><td>50.88</td><td>40.40</td></tr><tr><td>Fourth Quarter</td><td>56.00</td><td>42.75</td></tr><tr><td><i>Fiscal 2005</i></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$37.50</td><td>$30.10</td></tr><tr><td>Second Quarter</td><td>36.42</td><td>29.25</td></tr><tr><td>Third Quarter</td><td>41.47</td><td>30.57</td></tr><tr><td>Fourth Quarter</td><td>40.48</td><td>33.91</td></tr></table>
Holders As of April 24, 2006, there were 2,632 holders of record of Best Buy common stock. Dividends In fiscal 2004, our Board initiated the payment of a regular quarterly cash dividend, then $0.07 per common share per quarter. A quarterly cash dividend has been paid in each subsequent quarter. Effective with the quarterly cash dividend paid in the third quarter of fiscal 2005, we increased our quarterly cash dividend per common share by 10 percent. Effective with the quarterly cash dividend paid in the third quarter of fiscal 2006, we increased our quarterly cash dividend per common share by 9 percent to $0.08 per common share per quarter. The payment of cash dividends is subject to customary legal and contractual restrictions. Future dividend payments will depend on the Company’s earnings, capital requirements, financial condition and other factors considered relevant by our Board. Purchases of Equity Securities by the Issuer and Affiliated Purchasers In April 2005, our Board authorized a $1.5 billion share repurchase program. The program, which became effective on April 27, 2005, terminated and replaced a $500 million share repurchase program authorized by our Board in June 2004. Effective on June 24, 2004, our Board authorized the $500 million share repurchase program, which terminated and replaced a $400 million share repurchase program authorized by our Board in fiscal 2000. During the fourth quarter of fiscal 2006, we purchased and retired 7.1 million shares at a cost of $338 million. Since the inception of the $1.5 billion share repurchase program in fiscal 2006, we purchased and retired 16.5 million shares at a cost of $711 million. We consider several factors in determining when to make share repurchases including, among other things, our cash needs and the market price of the stock. At the end of fiscal 2006, $790 million of the $1.5 billion originally authorized by our Board was available for future share repurchases. Cash provided by future operating activities, available cash and cash equivalents, as well as short-term investments, are the expected sources of funding for the share repurchase program. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Continued Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. A discussion of the results of operations by principal business segment for the years ended December 31, 2014, 2013 and 2012 follows. For additional business segment financial information, see Note N to the financial statements in Item 8. Year Ended December 31, 2014 Compared with Year Ended December 31, 2013 The Companies’ results of operations in 2014 compared with 2013 were:
<table><tr><td></td><td colspan="2">CECONY</td><td colspan="2">O&R</td><td colspan="2">Competitive Energy Businesses</td><td colspan="2">Other(a)</td><td colspan="2">Con Edison(b)</td></tr><tr><td> (Millions of Dollars)</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td></tr><tr><td>Operating revenues</td><td>$356</td><td>3.4%</td><td>$59</td><td>7.1%</td><td>$148</td><td>13.5%</td><td>$2</td><td>40.0%</td><td>$565</td><td>4.6%</td></tr><tr><td>Purchased power</td><td>70</td><td>3.5</td><td>21</td><td>9.7</td><td>227</td><td>26.4</td><td>-</td><td>-</td><td>318</td><td>10.3</td></tr><tr><td>Fuel</td><td>-35</td><td>-10.9</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-35</td><td>-10.9</td></tr><tr><td>Gas purchased for resale</td><td>77</td><td>14.5</td><td>12</td><td>15.8</td><td>88</td><td>Large</td><td>-1</td><td>Large</td><td>176</td><td>27.7</td></tr><tr><td>Other operations and maintenance</td><td>138</td><td>5.0</td><td>16</td><td>5.3</td><td>3</td><td>2.9</td><td>-</td><td>-</td><td>157</td><td>5.0</td></tr><tr><td>Depreciation and amortization</td><td>45</td><td>4.8</td><td>5</td><td>8.9</td><td>-4</td><td>-17.4</td><td>1</td><td>Large</td><td>47</td><td>4.6</td></tr><tr><td>Taxes, other than income taxes</td><td>-18</td><td>-1.0</td><td>-2</td><td>-3.2</td><td>2</td><td>11.8</td><td>-</td><td>-</td><td>-18</td><td>-0.9</td></tr><tr><td>Gain on sale of solar electric production projects</td><td>-</td><td>-</td><td>-</td><td>-</td><td>45</td><td>-</td><td>-</td><td>-</td><td>45</td><td>-</td></tr><tr><td>Operating income (loss)</td><td>79</td><td>3.8</td><td>7</td><td>5.8</td><td>-123</td><td>Large</td><td>2</td><td>Large</td><td>-35</td><td>-1.6</td></tr><tr><td>Other income less deductions</td><td>10</td><td>Large</td><td>2</td><td>Large</td><td>20</td><td>Large</td><td>-3</td><td>Large</td><td>29</td><td>Large</td></tr><tr><td>Net interest expense</td><td>16</td><td>3.1</td><td>-2</td><td>-5.4</td><td>-143</td><td>Large</td><td>1</td><td>3.8</td><td>-128</td><td>-17.8</td></tr><tr><td>Income before income tax expense</td><td>73</td><td>4.7</td><td>11</td><td>13.1</td><td>40</td><td>62.5</td><td>-2</td><td>-9.1</td><td>122</td><td>7.9</td></tr><tr><td>Income tax expense</td><td>35</td><td>6.7</td><td>16</td><td>84.2</td><td>34</td><td>82.9</td><td>7</td><td>31.8</td><td>92</td><td>19.3</td></tr><tr><td>Net income for common stock</td><td>$38</td><td>3.7%</td><td>$-5</td><td>-7.7%</td><td>$6</td><td>26.1%</td><td>$-9</td><td>Large</td><td>$30</td><td>2.8%</td></tr></table>
(a) Includes parent company and consolidation adjustments. (b) Represents the consolidated financial results of Con Edison and its businesses.
<table><tr><td></td><td colspan="3"> Twelve Months Ended December 31, 2014</td><td></td><td colspan="3"> Twelve Months Ended December 31, 2013</td><td></td><td></td></tr><tr><td> (Millions of Dollars)</td><td> Electric</td><td> Gas</td><td> Steam</td><td> 2014 Total</td><td> Electric</td><td> Gas</td><td> Steam</td><td> 2013 Total</td><td>2014-2013 Variation</td></tr><tr><td>Operating revenues</td><td>$8,437</td><td>$1,721</td><td>$628</td><td>$10,786</td><td>$8,131</td><td>$1,616</td><td>$683</td><td>$10,430</td><td>$356</td></tr><tr><td>Purchased power</td><td>2,036</td><td>-</td><td>55</td><td>2,091</td><td>1,974</td><td>-</td><td>47</td><td>2,021</td><td>70</td></tr><tr><td>Fuel</td><td>180</td><td>-</td><td>105</td><td>285</td><td>174</td><td>-</td><td>146</td><td>320</td><td>-35</td></tr><tr><td>Gas purchased for resale</td><td>-</td><td>609</td><td>-</td><td>609</td><td>-</td><td>532</td><td>-</td><td>532</td><td>77</td></tr><tr><td>Other operations and maintenance</td><td>2,270</td><td>418</td><td>185</td><td>2,873</td><td>2,180</td><td>351</td><td>204</td><td>2,735</td><td>138</td></tr><tr><td>Depreciation and amortization</td><td>781</td><td>132</td><td>78</td><td>991</td><td>749</td><td>130</td><td>67</td><td>946</td><td>45</td></tr><tr><td>Taxes, other than income taxes</td><td>1,458</td><td>248</td><td>92</td><td>1,798</td><td>1,459</td><td>241</td><td>116</td><td>1,816</td><td>-18</td></tr><tr><td> Operating income</td><td>$1,712</td><td>$314</td><td>$113</td><td>$2,139</td><td>$1,595</td><td>$362</td><td>$103</td><td>$2,060</td><td>$79</td></tr></table>
reasonably possible that such matters will be resolved in the next twelve months, but we do not anticipate that the resolution of these matters would result in any material impact on our results of operations or financial position. Foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include Australia (2003 onward), Canada (2002 onward), France (2006 onward), Germany (2005 onward), Italy (2005 onward), Japan (2002 onward), Puerto Rico (2005 onward), Singapore (2003 onward), Switzerland (2006 onward) and the United Kingdom (2006 onward). Our tax returns are currently under examination in various foreign jurisdictions. The most significant foreign tax jurisdiction under examination is the United Kingdom. It is reasonably possible that such audits will be resolved in the next twelve months, but we do not anticipate that the resolution of these audits would result in any material impact on our results of operations or financial position.13. CAPITAL STOCK AND EARNINGS PER SHARE We are authorized to issue 250 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2008. The numerator for both basic and diluted earnings per share is net earnings available to common stockholders. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards. The following is a reconciliation of weighted average shares for the basic and diluted share computations for the years ending December 31 (in millions):
<table><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Weighted average shares outstanding for basic net earnings per share</td><td>227.3</td><td>235.5</td><td>243.0</td></tr><tr><td>Effect of dilutive stock options and other equity awards</td><td>1.0</td><td>2.0</td><td>2.4</td></tr><tr><td>Weighted average shares outstanding for diluted net earnings per share</td><td>228.3</td><td>237.5</td><td>245.4</td></tr></table>
For the year ended December 31, 2008, an average of 11.2 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock. For the years ended December 31, 2007 and 2006, an average of 3.1 million and 7.6 million options, respectively, were not included. During 2008, we repurchased approximately 10.8 million shares of our common stock at an average price of $68.72 per share for a total cash outlay of $737.0 million, including commissions. In April 2008, we announced that our Board of Directors authorized a $1.25 billion share repurchase program which expires December 31, 2009. Approximately $1.13 billion remains authorized under this plan.14. SEGMENT DATA We design, develop, manufacture and market orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products which include surgical supplies and instruments designed to aid in orthopaedic surgical procedures and post-operation rehabilitation. We also provide other healthcare-related services. Revenue related to these services currently represents less than 1 percent of our total net sales. We manage operations through three major geographic segments – the Americas, which is comprised principally of the United States and includes other North, Central and South American markets; Europe, which is comprised principally of Europe and includes the Middle East and Africa; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets. This structure is the basis for our reportable segment information discussed below. Management evaluates operating segment performance based upon segment operating profit exclusive of operating expenses pertaining to global operations and corporate expenses, share-based compensation expense, settlement, certain claims, acquisition, integration and other expenses, inventory step-up, in-process research and development write-offs and intangible asset amortization expense. Global operations include research, development engineering, medical education, brand management, corporate legal, finance, and human resource functions, and U. S. and Puerto Rico-based manufacturing operations and logistics. Intercompany transactions have been eliminated from segment operating profit. Management reviews accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets by reportable segment exclusive of U. S and Puerto Rico-based manufacturing operations and logistics and corporate assets. |
-0.05967 | What's the current increasing rate of Interest cost on benefit obligation in U.S. pension plans? | Liquidity Monitoring and Measurement Stress Testing Liquidity stress testing is performed for each of Citi’s major entities, operating subsidiaries and/or countries. Stress testing and scenario analyses are intended to quantify the potential impact of a liquidity event on the balance sheet and liquidity position, and to identify viable funding alternatives that can be utilized. These scenarios include assumptions about significant changes in key funding sources, market triggers (such as credit ratings), potential uses of funding and political and economic conditions in certain countries. These conditions include expected and stressed market conditions as well as Companyspecific events. Liquidity stress tests are conducted to ascertain potential mismatches between liquidity sources and uses over a variety of time horizons (overnight, one week, two weeks, one month, three months, one year) and over a variety of stressed conditions. Liquidity limits are set accordingly. To monitor the liquidity of an entity, these stress tests and potential mismatches are calculated with varying frequencies, with several tests performed daily. Given the range of potential stresses, Citi maintains a series of contingency funding plans on a consolidated basis and for individual entities. These plans specify a wide range of readily available actions for a variety of adverse market conditions or idiosyncratic stresses. Short-Term Liquidity Measurement: Liquidity Coverage Ratio (LCR) In addition to internal measures that Citi has developed for a 30-day stress scenario, Citi also monitors its liquidity by reference to the LCR, as calculated pursuant to the U. S. LCR rules. Generally, the LCR is designed to ensure that banks maintain an adequate level of HQLA to meet liquidity needs under an acute 30-day stress scenario. The LCR is calculated by dividing HQLA by estimated net outflows over a stressed 30-day period, with the net outflows determined by applying prescribed outflow factors to various categories of liabilities, such as deposits, unsecured and secured wholesale borrowings, unused lending commitments and derivativesrelated exposures, partially offset by inflows from assets maturing within 30 days. Banks are required to calculate an add-on to address potential maturity mismatches between contractual cash outflows and inflows within the 30-day period in determining the total amount of net outflows. The minimum LCR requirement is 100%, effective January 2017. In December 2016, the Federal Reserve Board adopted final rules which require additional disclosures relating to the LCR of large financial institutions, including Citi. Among other things, the final rules require Citi to disclose components of its average HQLA, LCR and inflows and outflows each quarter. In addition, the final rules require disclosure of Citi’s calculation of the maturity mismatch add-on as well as other qualitative disclosures. The effective date for these disclosures is April 1, 2017.
<table><tr><td>In billions of dollars</td><td>Dec. 31, 2016</td><td>Sept. 30, 2016</td><td>Dec. 31, 2015</td></tr><tr><td>HQLA</td><td>$403.7</td><td>$403.8</td><td>$389.2</td></tr><tr><td>Net outflows</td><td>332.5</td><td>335.3</td><td>344.4</td></tr><tr><td>LCR</td><td>121%</td><td>120%</td><td>113%</td></tr><tr><td>HQLA in excess of net outflows</td><td>$71.3</td><td>$68.5</td><td>$44.8</td></tr></table>
The table below sets forth the components of Citi’s LCR calculation and HQLA in excess of net outflows for the periods indicated: Note: Amounts set forth in the table above are presented on an average basis. As set forth in the table above, Citi’s LCR increased both year-over-year and sequentially. The increase year-over-year was driven by both an increase in HQLA and a reduction in net outflows. Sequentially, the increase was driven by a slight reduction in net outflows, as HQLA remained largely unchanged. Long-Term Liquidity Measurement: Net Stable Funding Ratio (NSFR) In the second quarter of 2016, the Federal Reserve Board, the FDIC and the OCC issued a proposed rule to implement the Basel III NSFR requirement. The U. S. -proposed NSFR is largely consistent with the Basel Committee’s final NSFR rules. In general, the NSFR assesses the availability of a bank’s stable funding against a required level. A bank’s available stable funding would include portions of equity, deposits and long-term debt, while its required stable funding would be based on the liquidity characteristics of its assets, derivatives and commitments. Standardized weightings would be required to be applied to the various asset and liabilities classes. The ratio of available stable funding to required stable funding would be required to be greater than 100%. While Citi believes that it is compliant with the proposed U. S. NSFR rules as of December 31, 2016, it will need to evaluate any final version of the rules, which are expected to be released during 2017. The proposed rules would require full implementation of the U. S. NSFR beginning January 1, 2018. 8. RETIREMENT BENEFITS Pension and Postretirement Plans The Company has several non-contributory defined benefit pension plans covering certain U. S. employees and has various defined benefit pension and termination indemnity plans covering employees outside the U. S. The U. S. qualified defined benefit plan was frozen effective January 1, 2008 for most employees. Accordingly, no additional compensation-based contributions have been credited to the cash balance portion of the plan for existing plan participants after 2007. However, certain employees covered under the prior final pay plan formula continue to accrue benefits. The Company also offers postretirement health care and life insurance benefits to certain eligible U. S. retired employees, as well as to certain eligible employees outside the U. S. The Company also sponsors a number of non-contributory, nonqualified pension plans. These plans, which are unfunded, provide supplemental defined pension benefits to certain U. S. employees. With the exception of certain employees covered under the prior final pay plan formula, the benefits under these plans were frozen in prior years. The plan obligations, plan assets and periodic plan expense for the Company鈥檚 most significant pension and postretirement benefit plans (Significant Plans) are measured and disclosed quarterly, instead of annually. The Significant Plans captured approximately 90% of the Company鈥檚 global pension and postretirement plan obligations as of December 31, 2016. All other plans (All Other Plans) are measured annually with a December 31 measurement date. Net (Benefit) Expense The following table summarizes the components of net (benefit) expense recognized in the Consolidated Statement of Income for the Company鈥檚 pension and postretirement plans, for Significant Plans and All Other Plans:
<table><tr><td></td><td colspan="6">Pension plans</td><td colspan="6">Postretirement benefit plans</td></tr><tr><td></td><td colspan="3">U.S. plans</td><td colspan="3">Non-U.S. plans</td><td colspan="3">U.S. plans</td><td colspan="3">Non-U.S. plans</td></tr><tr><td>In millions of dollars</td><td>2016</td><td>2015</td><td>2014</td><td>2016</td><td>2015</td><td>2014</td><td>2016</td><td>2015</td><td>2014</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Qualified plans</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Benefits earned during the year</td><td>$3</td><td>$4</td><td>$6</td><td>$154</td><td>$168</td><td>$178</td><td>$—</td><td>$—</td><td>$—</td><td>$10</td><td>$12</td><td>$15</td></tr><tr><td>Interest cost on benefit obligation</td><td>520</td><td>553</td><td>541</td><td>282</td><td>317</td><td>376</td><td>25</td><td>33</td><td>33</td><td>94</td><td>108</td><td>120</td></tr><tr><td>Expected return on plan assets</td><td>-886</td><td>-893</td><td>-878</td><td>-287</td><td>-323</td><td>-384</td><td>-9</td><td>-3</td><td>-1</td><td>-86</td><td>-105</td><td>-121</td></tr><tr><td>Amortization of unrecognized</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Prior service (benefit) cost</td><td>—</td><td>-3</td><td>-3</td><td>-1</td><td>2</td><td>1</td><td>—</td><td>—</td><td>—</td><td>-10</td><td>-11</td><td>-12</td></tr><tr><td>Net actuarial loss</td><td>160</td><td>139</td><td>105</td><td>69</td><td>73</td><td>77</td><td>-1</td><td>—</td><td>—</td><td>30</td><td>43</td><td>39</td></tr><tr><td>Curtailment loss (gain)<sup>(1)</sup></td><td>13</td><td>14</td><td>—</td><td>-2</td><td>—</td><td>14</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-1</td><td>—</td></tr><tr><td>Settlement loss (gain)<sup>(1)</sup></td><td>—</td><td>—</td><td>—</td><td>6</td><td>44</td><td>53</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Special termination benefits<sup>-1</sup></td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>9</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net qualified plans (benefit) expense</td><td>$-190</td><td>$-186</td><td>$-229</td><td>$221</td><td>$281</td><td>$324</td><td>$15</td><td>$30</td><td>$32</td><td>$38</td><td>$46</td><td>$41</td></tr><tr><td>Nonqualified plans expense</td><td>$40</td><td>$43</td><td>$45</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td></tr><tr><td>Total net (benefit) expense</td><td>$-150</td><td>$-143</td><td>$-184</td><td>$221</td><td>$281</td><td>$324</td><td>$15</td><td>$30</td><td>$32</td><td>$38</td><td>$46</td><td>$41</td></tr></table>
(1) Losses and gains due to curtailment, settlement and special termination benefits relate to repositioning and divestiture actions. The estimated net actuarial loss and prior service (benefit) cost that will be amortized from Accumulated other comprehensive income (loss) into net expense in 2017 are approximately $233 million and $(2) million, respectively, for defined benefit pension plans. For postretirement plans, the estimated 2017 net actuarial loss and prior service (benefit) cost amortizations are approximately $28 million and $(9) million, respectively. Results of Operations
<table><tr><td></td><td>2009 (all amounts in millions)</td><td>2008</td><td>Increase/ (Decrease)</td><td>% change</td></tr><tr><td>Revenues from rental property -1</td><td>$786.9</td><td>$758.7</td><td>$28.2</td><td>3.7%</td></tr><tr><td>Rental property expenses: -2</td><td></td><td></td><td></td><td></td></tr><tr><td>Rent</td><td>$14.1</td><td>$13.4</td><td>$0.7</td><td>5.2%</td></tr><tr><td>Real estate taxes</td><td>112.4</td><td>98.0</td><td>14.4</td><td>14.7%</td></tr><tr><td>Operating and maintenance</td><td>110.1</td><td>104.7</td><td>5.4</td><td>5.2%</td></tr><tr><td></td><td>$236.6</td><td>$216.1</td><td>$20.5</td><td>9.5%</td></tr><tr><td>Depreciation and amortization -3</td><td>$227.7</td><td>$206.0</td><td>$21.7</td><td>10.5%</td></tr></table>
(1) Revenues from rental property increased primarily from the combined effect of (i) the acquisition of operating properties during 2008 and 2009, providing incremental revenues for the year ended December 31, 2009 of $29.3 million, as compared to the corresponding period in 2008 and (ii) the completion of certain development and redevelopment projects and tenant buyouts providing incremental revenues of approximately $7.4 million, for the year ended December 31, 2009, as compared to the corresponding period in 2008, which was partially offset by (iii) a decrease in revenues of approximately $8.5 million for the year ended December 31, 2009, as compared to the corresponding period in 2008, primarily resulting from the sale of certain properties during 2008 and 2009, and (iv) an overall occupancy decrease from the consolidated shopping center portfolio from 93.1% at December 31, 2008 to 92.2% at December 31, 2009. (2) Rental property expenses increased primarily due to (i) operating property acquisitions during 2008 and 2009, (ii) the placement of certain development properties into service, which resulted in lower capitalization of carry costs, and (iii) an increase in snow removal costs during 2009 as compared to 2008, partially offset by (iv) a decrease in insurance costs during 2009 as compared to 2008 and (v) operating property dispositions during 2008 and 2009. (3) Depreciation and amortization increased primarily due to (i) operating property acquisitions during 2008 and 2009, (ii) the placement of certain development properties into service and (iii) tenant vacates, partially offset by operating property dispositions during 2008 and 2009. Mortgage and other financing income decreased $3.3 million to $15.0 million for the year ended December 31, 2009, as compared to $18.3 million for the corresponding period in 2008. This decrease is primarily due to a decrease in interest income during 2009 resulting from the repayment of certain mortgage receivables during 2009 and 2008. Management and other fee income decreased approximately $5.2 million for the year ended December 31, 2009, as compared to the corresponding period in 2008. This decrease is primarily due to a decrease in property management fees of approximately $5.8 million for 2009, due to lower revenues attributable to lower occupancy and the sale of certain properties during 2008 and 2009, partially offset by an increase in other transaction related fees of approximately $0.6 million recognized during 2009. General and administrative expenses decreased approximately $6.1 million for the year ended December 31, 2009, as compared to the corresponding period in 2008. This decrease is primarily due to a reduction in force during 2009 as a result of implementing the Company’s core business strategy of focusing on owning and operating shopping centers and a shift away from certain non-strategic assets along with a lack of transactional activity. Interest, dividends and other investment income decreased approximately $23.0 million for the year ended December 31, 2009, as compared to the corresponding period in 2008. This decrease is primarily due to (i) a decrease in realized gains of approximately $8.2 million during 2009 resulting from the sale of certain marketable securities during the corresponding period in 2008 as compared to 2009, and (ii) a decrease in interest and dividend income of approximately $14.8 million during 2009, as compared to the corresponding period in 2008, primarily resulting from the sale of investments in marketable securities and reductions in dividends declared from certain marketable securities during 2009 and 2008. Other expense, net decreased approximately $1.3 million to $0.9 million for the year ended December 31, 2009, as compared to $2.2 million for the corresponding period in 2008. This decrease is primarily due to (i) the receipt of fewer shares of Sears Holding Corp. common stock received as partial settlement of Kmart pre-petition claims during 2008, |
21,043 | What is the amount of the positive term of the total mortgage and other loans receivable, net of allowance in 2016? (in dollars in millions) | American International Group, Inc. and Subsidiaries Financial Services Operations AlG's Financial Services subsidiaries engage in diversified activi- ties including aircraft and equipment leasing, capital markets, consumer finance and insurance premium finance. Financial Services Results Financial Services results for 2006,2005 and 2004 were as follows:
<table><tr><td><i>(in millions)</i></td><td>2006</td><td>2005</td><td>2004</td></tr><tr><td>Revenues<i><sup>(a)</sup></i>:</td><td></td><td></td><td></td></tr><tr><td>Aircraft Leasing<i><sup>(b)</sup></i></td><td>$4,143</td><td>$3,578</td><td>$3,136</td></tr><tr><td>Capital Markets<i><sup>(c)(d)</sup></i></td><td>-186</td><td>3,260</td><td>1,278</td></tr><tr><td>Consumer Finance<i><sup>(e)</sup></i></td><td>3,819</td><td>3,613</td><td>2,978</td></tr><tr><td>Other</td><td>234</td><td>74</td><td>103</td></tr><tr><td>Total</td><td>$8,010</td><td>$10,525</td><td>$7,495</td></tr><tr><td colspan="2">Operating income (loss)<i><sup>(a)</sup></i>:</td><td></td><td></td></tr><tr><td>Aircraft Leasing</td><td>$639</td><td>$679</td><td>$642</td></tr><tr><td>Capital Markets<i><sup>(d)</sup></i></td><td>-873</td><td>2,661</td><td>662</td></tr><tr><td>Consumer Finance<i><sup>(f)</sup></i></td><td>761</td><td>876</td><td>786</td></tr><tr><td>Other, includingintercompany adjustments<i><sup>(g)</sup></i></td><td>-3</td><td>60</td><td>90</td></tr><tr><td>Total</td><td>$524</td><td>$4,276</td><td>$2,180</td></tr></table>
(a) Includes the effect of hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and osses. For 2006,2005 and 2004, respectively, the effect was $(1.8) billion,$2.0 billion and $(122) million in both revenues and operating income for Capital Markets. These amounts result primarily from interest rate and foreign currency derivatives that are economicaly hedging available for sale securities and borrowings. For 2004, the effect was $(27) million in operating income for Aircrat Leasing. During 2006 and 2005, Aircraft Leasing derivative gains and losses were reported as part of AlG's Other category, and were not reported in Aircraft Leasing operating income. (b) Revenues are primarily aircraft lease rentals from ILFC. (cC) Revenues, shown net of interest expense of $3.2 bilion,$3.0 bilion and $2.3 bilion, in 2006,2005 and 2004, respectively, were primarily from hedged financial positions entered into in connection with counterparty transactions and the effect of hedging activities that did not quality for hedge accounting treatment under FAS 133 described n (a) above. (d) Certain transactions entered into by AIGFP generate tax credits and benefits which are included in income taxes in the consolidated statement of income. The amounts of such tax credits and benefits fod the years ended December 31,2006,2005 and 2004, respectively. are $50 million,$67 milion and $107 million. (e) Revenues are primarily fimance charges. () includes catastrophe-related losses of $62 milion recorded in the third quarter of 2005 resulting from hurricane Katrina, which were reduced by $35 milion in 2006 due to the reevaluation of the remaining estimated los ses. (g) Includes specific reserves recorded during 2006 in the amount of $42 millon related to two commercial lending trans actions. Financial Services operating income decreased in 2006 com- pared to 2005 and increased in 2005 compared to 2004, due primarily to the effect of hedging activities that did not qualify for hedge accounting under FAS 133. AIG is reinstituting hedge accounting in the first quarter of 2007 for AlGFP and later in 2007 for the balance of the Financial Services operations. Aircraft Leasing AlG's Aircraft Leasing operations represent the operations of ILFC, which generates its revenues primarily from leasing new and used commercial jet aircraft to foreign and domestic airlines. Revenues also result from the remarketing of commercial jets for ILFC's own account, and remarketing and fleet management services for airlines and financial institutions. ILFC finances its purchases of aircraft primarily through the issuance of a variety of debt instruments. The composite borrowing rates at December 31, 2006 and 2005 were 5.17 percent and 4.61 percent, respec- tively. The composite borrowing rates did not reflect the benefit of economically hedging ILFC's floating rate and foreign currency denominated debt using interest rate and foreign currency deriva tives. These derivatives are effective economic hedges; however, since hedge accounting under FAS 133 was not applied, the benefits of using derivatives to hedge these exposures were not reflected in ILFC's borrowing rates. ILFC's sources of revenue are principally from scheduled and charter airlines and companies associated with the airline indus- try. The airline industry is sensitive to changes in economic conditions and is cyclical and highly competitive. Airlines and related companies may be affected by political or economic instability, terrorist activities, changes in national policy, competi- tive pressures on certain air carriers, fuel prices and shortages, labor stoppages, insurance costs, recessions, world health issues and other political or economic events adversely affecting world or regonal trading markets. ILFC is exposed to operating loss and liquidity strain through nonperformance of aircraft lessees, through owning aircraft which it would be unable to sell or re-lease at acceptable rates at lease expiration and, in part, through committing to purchase aircraft which it would be unable to lease. ILFC’s revenues and operating income may be adversely affected by the volatile competitive environment in which its customers operate. ILFC manages the risk of nonperformance by its lessees with security deposit requirements, repossession rights, overhaul requirements and close monitoring of industry conditions through its marketing force. However, there can be no assurance that ILFC would be able to successfully manage the risks relating to the effect of possible future deterioration in the airline industry. Approximately 90 percent of ILFC’s ?eet is leased to non-U. S. carriers, and the ?eet, comprised of the most ef?cient aircraft in the airline industry, continues to be in high demand from such carriers. ILFC typically contracts to re-lease aircraft before the end of the existing lease term. For aircraft returned before the end of the lease term, ILFC has generally been able to re-lease such aircraft within two to six months of its return. As a lessor, ILFC considers an aircraft ‘‘idle’’ or ‘‘off lease’’ when the aircraft is not subject to a signed lease agreement or signed letter of intent. ILFC had one aircraft off lease at December 31, 2006, and all new aircraft scheduled for delivery through 2007 have been leased. Management formally reviews regularly, and no less frequently than quarterly, issues affecting ILFC’s ?eet, including events and circumstances that may cause impairment of aircraft values. Management evaluates aircraft in the ?eet as necessary based on American International Group, Inc. and Subsidiaries Management’s Discussion and Analysis of Financial Condition and Results of Operations Continued
<table><tr><td colspan="2"></td><td>Life Insurance &</td><td colspan="4"></td></tr><tr><td></td><td>General</td><td>Retirement</td><td>Financial</td><td>Asset</td><td colspan="2"></td></tr><tr><td><i>(in millions)</i></td><td>Insurance</td><td>Services</td><td>Services</td><td>Management</td><td>Other</td><td>Total</td></tr><tr><td>2006</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Bonds available for sale, at fair value</td><td>$67,994</td><td>$288,018</td><td>$1,357</td><td>$29,500</td><td>$—</td><td>$386,869</td></tr><tr><td>Bonds held to maturity, at amortized cost</td><td>21,437</td><td>—</td><td>—</td><td>—</td><td>—</td><td>21,437</td></tr><tr><td>Bond trading securities, at fair value</td><td>1</td><td>10,835</td><td>—</td><td>—</td><td>—</td><td>10,836</td></tr><tr><td>Equity securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Common stocks available for sale, at fair value</td><td>4,245</td><td>8,705</td><td>—</td><td>226</td><td>80</td><td>13,256</td></tr><tr><td>Common stocks trading, at fair value</td><td>350</td><td>14,505</td><td>—</td><td>—</td><td>—</td><td>14,855</td></tr><tr><td>Preferred stocks available for sale, at fair value</td><td>1,884</td><td>650</td><td>5</td><td>—</td><td>—</td><td>2,539</td></tr><tr><td>Mortgage and other loans receivable, net of allowance</td><td>17</td><td>21,043</td><td>2,398</td><td>4,884</td><td>76</td><td>28,418</td></tr><tr><td>Financial services assets:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Flight equipment primarily under operating leases, net of accumulated depreciation</td><td>—</td><td>—</td><td>39,875</td><td>—</td><td>—</td><td>39,875</td></tr><tr><td>Securities available for sale, at fair value</td><td>—</td><td>—</td><td>47,205</td><td>—</td><td>—</td><td>47,205</td></tr><tr><td>Trading securities, at fair value</td><td>—</td><td>—</td><td>5,031</td><td>—</td><td>—</td><td>5,031</td></tr><tr><td>Spot commodities</td><td>—</td><td>—</td><td>220</td><td>—</td><td>—</td><td>220</td></tr><tr><td>Unrealized gain on swaps, options and forward transactions</td><td>—</td><td>—</td><td>19,607</td><td>—</td><td>-355</td><td>19,252</td></tr><tr><td>Trade receivables</td><td>—</td><td>—</td><td>4,317</td><td>—</td><td>—</td><td>4,317</td></tr><tr><td>Securities purchased under agreements to resell, at contract value</td><td>—</td><td>—</td><td>30,291</td><td>—</td><td>—</td><td>30,291</td></tr><tr><td>Finance receivables, net of allowance</td><td>—</td><td>—</td><td>29,573</td><td>—</td><td>—</td><td>29,573</td></tr><tr><td>Securities lending invested collateral, at fair value</td><td>5,376</td><td>50,099</td><td>76</td><td>13,755</td><td>—</td><td>69,306</td></tr><tr><td>Other invested assets</td><td>9,207</td><td>13,962</td><td>2,212</td><td>13,198</td><td>3,532</td><td>42,111</td></tr><tr><td>Short-term investments, at cost</td><td>3,281</td><td>15,192</td><td>2,807</td><td>6,198</td><td>5</td><td>27,483</td></tr><tr><td>Total investments and financial services assets as shown on the balance sheet</td><td>113,792</td><td>423,009</td><td>184,974</td><td>67,761</td><td>3,338</td><td>792,874</td></tr><tr><td>Cash</td><td>334</td><td>740</td><td>390</td><td>118</td><td>8</td><td>1,590</td></tr><tr><td>Investment income due and accrued</td><td>1,363</td><td>4,378</td><td>23</td><td>326</td><td>1</td><td>6,091</td></tr><tr><td>Real estate, net of accumulated depreciation</td><td>570</td><td>698</td><td>17</td><td>75</td><td>26</td><td>1,386</td></tr><tr><td>Total invested assets<i><sup>(a)(b)</sup></i></td><td>$116,059</td><td>$428,825</td><td>$185,404</td><td>$68,280</td><td>$3,373</td><td>$801,941</td></tr></table>
(a) Certain reclassifications and format changes have been made to prior period amounts to conform to the current period presentation. (b) At December 31, 2006, approximately 68 percent and 32 percent of invested assets were held in domestic and foreign investments, respectively. Investment Strategy AIG’s investment strategies are tailored to the speci?c business needs of each operating unit. The investment objectives are driven by the business model for each of the businesses: General Insurance, Life Insurance, Retirement Services and Asset Manage-ment’s Spread-Based Investment business. The primary objectives are in terms of preservation of capital, growth of surplus and generation of investment income to support the insurance products. At the local operating unit level, the strategies are based on considerations that include the local market, liability duration and cash ?ow characteristics, rating agency and regula- tory capital considerations, legal investment limitations, tax optimization and diversi?cation. In addition to local risk manage-ment considerations, AIG’s corporate risk management guidelines impose limitations on concentrations to promote diversi?cation by industry, asset class and geographic sector. American International Group, Inc. , and Subsidiaries resulted in a benefit to the surplus of the domestic and foreign General Insurance companies of $114 million and $859 million, respectively, and did not affect compliance with minimum regulatory capital requirements. As discussed under Item 3. Legal Proceedings, various regulators have commenced investigations into certain insurance business practices. In addition, the OTS and other regulators routinely conduct examinations of AIG and its subsidiaries, including AIG’s consumer finance operations. AIG cannot predict the ultimate effect that these investigations and examinations, or any additional regulation arising therefrom, might have on its business. Federal, state or local legislation may affect AIG’s ability to operate and expand its various financial services businesses, and changes in the current laws, regulations or interpretations thereof may have a material adverse effect on these businesses. AIG’s U. S. operations are negatively affected under guarantee fund assessment laws which exist in most states. As a result of operating in a state which has guarantee fund assessment laws, a solvent insurance company may be assessed for certain obligations arising from the insolvencies of other insurance companies which operated in that state. AIG generally records these assessments upon notice. Additionally, certain states permit at least a portion of the assessed amount to be used as a credit against a company’s future premium tax liabilities. Therefore, the ultimate net assessment cannot reasonably be estimated. The guarantee fund assessments net of credits recognized in 2008, 2007 and 2006, respectively, were $8 million, $87 million and $97 million. AIG is also required to participate in various involuntary pools (principally workers’ compensation business) which provide insurance coverage for those not able to obtain such coverage in the voluntary markets. This participation is also recorded upon notification, as these amounts cannot reasonably be estimated. A substantial portion of AIG’s General Insurance business and a majority of its Life Insurance & Retirement Services business are conducted in foreign countries. The degree of regulation and supervision in foreign jurisdictions varies. Generally, AIG, as well as the underwriting companies operating in such jurisdictions, must satisfy local regulatory requirements. Licenses issued by foreign authorities to AIG subsidiaries are subject to modification and revocation. Thus, AIG’s insurance subsidiaries could be prevented from conducting future business in certain of the jurisdictions where they currently operate. AIG’s international operations include operations in various developing nations. Both current and future foreign operations could be adversely affected by unfavorable political developments up to and including nationalization of AIG’s operations without compensation. Adverse effects resulting from any one country may affect AIG’s results of operations, liquidity and financial condition depending on the magnitude of the event and AIG’s net financial exposure at that time in that country. Foreign insurance operations are individually subject to local solvency margin requirements that require maintenance of adequate capitalization, which AIG complies with by country. In addition, certain foreign locations, notably Japan, have established regulations that can result in guarantee fund assessments. These have not had a material effect on AIG’s financial condition or results of operations. Investments Investments by Segment The following tables summarize the composition of AIG’s investments by segment:
<table><tr><td></td><td> General Insurance</td><td> Life Insurance & Retirement Services</td><td> Financial Services</td><td> Asset Management</td><td> Other</td><td> Total</td></tr><tr><td></td><td colspan="6"> (In millions)</td></tr><tr><td> At December 31, 2008</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturity securities:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Bonds available for sale, at fair value</td><td>$85,791</td><td>$262,824</td><td>$1,971</td><td>$12,284</td><td>$172</td><td>$363,042</td></tr><tr><td>Bond trading securities, at fair value</td><td>—</td><td>6,296</td><td>26,848</td><td>5</td><td>4,099</td><td>37,248</td></tr><tr><td>Securities lending invested collateral, at fair value</td><td>790</td><td>3,054</td><td>—</td><td>—</td><td>—</td><td>3,844</td></tr></table>
Business Separation Costs On 16 September 2015, the Company announced that it intends to separate its Materials Technologies business via a spin-off. During the fourth quarter, we incurred legal and other advisory fees of $7.5 ($.03 per share). Gain on Previously Held Equity Interest On 30 December 2014, we acquired our partner’s equity ownership interest in a liquefied atmospheric industrial gases production joint venture in North America for $22.6 which increased our ownership from 50% to 100%. The transaction was accounted for as a business combination, and subsequent to the acquisition, the results are consolidated within our Industrial Gases – Americas segment. The assets acquired, primarily plant and equipment, were recorded at their fair value as of the acquisition date. The acquisition date fair value of the previously held equity interest was determined using a discounted cash flow analysis under the income approach. During the first quarter of 2015, we recorded a gain of $17.9 ($11.2 after-tax, or $.05 per share) as a result of revaluing our previously held equity interest to fair value as of the acquisition date. Advisory Costs During the fourth quarter of 2013, we incurred legal and other advisory fees of $10.1 ($6.4 after-tax, or $.03 per share) in connection with our response to the rapid acquisition of a large position in shares of our common stock by Pershing Square Capital Management LLC and its affiliates. Other Income (Expense), Net Items recorded to other income (expense), net arise from transactions and events not directly related to our principal income earning activities. The detail of other income (expense), net is presented in Note 24, Supplemental Information, to the consolidated financial statements.2015 vs. 2014 Other income (expense), net of $47.3 decreased $5.5. The current year includes a gain of $33.6 ($28.3 after-tax, or $.13 per share) resulting from the sale of two parcels of land. The gain was partially offset by unfavorable foreign exchange impacts and lower gains on other sales of assets and emissions credits. No other individual items were significant in comparison to the prior year.2014 vs. 2013 Other income (expense), net of $52.8 decreased $17.4, primarily due to higher gains from the sale of a number of small assets and investments, higher government grants, and a favorable commercial contract settlement in 2013. Otherwise, no individual items were significant in comparison to 2013. |
2,004 | In which section the sum of Net sales has the highest value? | SEALED AIR CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) (Amounts in tables in millions of dollars, except share and per share data) Note 16 Shareholders’ Equity (Continued) directors elected at times other than at an annual meeting, at a price per share equal to the par value of the shares, as all or part of the annual or interim retainer fees for non-employee directors. During 2002, the Company adopted a plan that permits non-employee directors to elect to defer all or part of their annual retainer until the non-employee director retires from the Board. The non-employee director can elect to defer the portion of the annual retainer payable in shares of stock. If a non-employee director makes this election, the non-employee director may also elect to defer the portion, if any, of the annual retainer payable in cash. The Company charges the excess of fair value over the price at which shares are issued under this plan to operations at the date of the grant. This charge is included in marketing, administrative and development expenses and amounted to $0.3 million in 2004, $0.3 million in 2003 and $0.4 million in 2002. A summary of the changes in shares available for the Contingent Stock Plan and the Directors Stock Plan follows:
<table><tr><td></td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td>Changes in Contingent Stock Plan shares:</td><td></td><td></td><td></td></tr><tr><td>Number of shares available, beginning of year</td><td>901,195</td><td>1,251,350</td><td>1,484,450</td></tr><tr><td>Shares issued for new awards</td><td>-252,275</td><td>-356,705</td><td>-238,900</td></tr><tr><td>Contingent stock forfeited</td><td>14,400</td><td>6,550</td><td>5,800</td></tr><tr><td>Number of shares available, end of year</td><td>663,320</td><td>901,195</td><td>1,251,350</td></tr><tr><td>Weighted average per share market value of stock on grant date</td><td>$49.79</td><td>$43.09</td><td>$30.27</td></tr><tr><td>Changes in Directors Stock Plan shares:</td><td></td><td></td><td></td></tr><tr><td>Number of shares available, beginning of year</td><td>84,611</td><td>92,102</td><td>55,800</td></tr><tr><td>Shares no longer available under the 1998 Directors Stock Plan</td><td>—</td><td>—</td><td>-55,800</td></tr><tr><td>Shares available under the 2002 Directors Stock Plan</td><td>—</td><td>—</td><td>100,000</td></tr><tr><td>Shares granted and issued</td><td>-1,827</td><td>-2,724</td><td>-2,605</td></tr><tr><td>Shares granted and deferred</td><td>-4,263</td><td>-4,767</td><td>-5,293</td></tr><tr><td>Number of shares available, end of year</td><td>78,521</td><td>84,611</td><td>92,102</td></tr><tr><td>Weighted average per share market value of stock on grant date</td><td>$49.29</td><td>$44.08</td><td>$44.65</td></tr></table>
Other Common Stock Issuances During 2004 the Company issued 50,000 shares of its common stock, par value $0.10 per share, to a non-employee under an intellectual property purchase agreement as prepaid royalties under that agreement. These shares vest ratably over a five-year period. Amortization expense related to the issuance of 60,000 and 50,000 shares in 2000 and 1999, respectively, of the Company’s common stock in exchange for non-employee consulting services was $0.4 million, $0.8 million and $1.6 million, in 2004, 2003 and 2002, respectively. These shares vest ratably over a three-to five-year period. The Company amortizes the cost associated with these shares on a straight-line basis. Redeemable Preferred Stock—Series A Convertible Preferred Stock On July 18, 2003, the Company used cash of $1,298.1 million, including net proceeds of the Company’s July 2003 senior notes offering of $1,261.1 million, to redeem all the outstanding shares of its Series A convertible preferred stock at their redemption price of $51.00 per share. The $51.00 per share redemption price included a $1.00 per share redemption premium, or $25.5 million in the aggregate. The $25.5 million paid for the redemption premium reduced shareholders’ equity and net earnings ascribed to common shareholders in 2003. into 0.885 shares of the Company’s common stock. These authorizations compose a single program, which has no set expiration date. As of the close of business on December 31, 2004, approximately 16,977,000 shares of the Company’s common stock were authorized to be repurchased under this program, approximately 11,897,000 shares had been repurchased (including preferred shares on an as-converted basis), leaving approximately 5,080,000 shares of common stock authorized for repurchase under the program. Item 6. Selected Financial Data
<table><tr><td> </td><td> 2004</td><td> 2003</td><td>2002-1</td><td> 2001</td><td> 2000</td></tr><tr><td> </td><td colspan="5"> (In millions of dollars, except per share data) </td></tr><tr><td> Consolidated Statement of Operations Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net sales</td><td>$3,798.1</td><td>$3,531.9</td><td>$3,204.3</td><td>$3,067.5</td><td>$3,067.7</td></tr><tr><td>Gross profit</td><td>1,162.1</td><td>1,112.8</td><td>1,057.6</td><td>990.3</td><td>1,035.3</td></tr><tr><td>Operating profit-2(3)</td><td>503.0</td><td>540.9</td><td>517.0</td><td>387.8</td><td>468.7</td></tr><tr><td>Earnings (loss) before income taxes</td><td>322.9</td><td>376.9</td><td>-391.9</td><td>297.5</td><td>413.4</td></tr><tr><td>Net earnings (loss)</td><td>215.6</td><td>240.4</td><td>-309.1</td><td>156.7</td><td>225.3</td></tr><tr><td>Series A convertible preferred stock dividends-4</td><td>—</td><td>28.6</td><td>53.8</td><td>55.0</td><td>64.3</td></tr><tr><td>Earnings (loss) per common share</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$2.56</td><td>$2.21</td><td>$-4.20</td><td>$1.30</td><td>$2.47</td></tr><tr><td>Diluted-5</td><td>$2.25</td><td>$1.97</td><td>$-4.30</td><td>$1.22</td><td>$1.93</td></tr><tr><td> Consolidated Balance Sheet Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Working capital net asset (net liability)(6)</td><td>$307.4</td><td>$280.4</td><td>$-34.5</td><td>$149.4</td><td>$202.5</td></tr><tr><td>Total assets-6</td><td>4,855.0</td><td>4,704.1</td><td>4,260.8</td><td>3,907.9</td><td>4,090.9</td></tr><tr><td>Long-term debt, less current portion-4(6)</td><td>2,088.0</td><td>2,259.8</td><td>868.0</td><td>788.1</td><td>944.5</td></tr><tr><td>Series A convertible preferred stock-4</td><td>—</td><td>—</td><td>1,327.0</td><td>1,366.2</td><td>1,392.4</td></tr><tr><td>Total shareholders' equity</td><td>1,333.5</td><td>1,123.6</td><td>813.0</td><td>850.2</td><td>753.1</td></tr><tr><td> Other Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>EBIT-7</td><td>$476.6</td><td>$512.9</td><td>$-326.0</td><td>$374.3</td><td>$478.2</td></tr><tr><td>Depreciation and amortization-2</td><td>179.5</td><td>173.2</td><td>165.0</td><td>220.6</td><td>219.7</td></tr><tr><td>EBITDA-7</td><td>656.1</td><td>686.1</td><td>-161.0</td><td>594.9</td><td>697.9</td></tr><tr><td>Capital expenditures</td><td>102.7</td><td>124.3</td><td>91.6</td><td>146.3</td><td>114.2</td></tr></table>
(1) In November 2002, the Company reached an agreement in principle with the appropriate parties to resolve all current and future asbestos-related claims made against it and its affiliates in connection with the Cryovac transaction. The parties signed a definitive settlement agreement as of November 10, 2003 consistent with the terms of the agreement in principle. In connection with this settlement, the Company recorded a pre-tax charge of $850.1 million in the consolidated statement of operations in 2002, which resulted in the Company’s net loss for the year ended December 31, 2002. See Note 19 to the Consolidated Financial Statements. (2) Beginning January 1, 2002, in accordance with Statement of Financial Accounting Standards (‘‘SFAS’’) No.142, the Company stopped recording amortization expense related to goodwill. Goodwill amortization expense was $57.0 million in 2001 and $51.8 million in 2000. See Note 8 to the Consolidated Financial Statements. (3) In the fourth quarter of 2004, the Company incurred restructuring and other charges of $33.0 million relating to global profit improvement initiatives implemented to improve the Company’s operating efficiencies and cost structure. In 2001, the Company recorded restructuring charges of $32.8 million. See Note 11 to the Consolidated Financial Statements. Foreign Operations We operate through our subsidiaries in the United States and in the 50 other countries listed below, and our products are distributed in these countries as well as in other parts of the world.
<table><tr><td> Americas</td><td colspan="2"> Europe, Middle East and Africa</td><td> Asia-Pacific</td></tr><tr><td>Argentina</td><td>Belgium</td><td>Norway</td><td>Australia</td></tr><tr><td>Brazil</td><td>Czech Republic</td><td>Poland</td><td>China</td></tr><tr><td>Canada</td><td>Denmark</td><td>Portugal</td><td>India</td></tr><tr><td>Chile</td><td>Finland</td><td>Romania</td><td>Indonesia</td></tr><tr><td>Colombia</td><td>France</td><td>Russia</td><td>Japan</td></tr><tr><td>Costa Rica</td><td>Germany</td><td>South Africa</td><td>Malaysia</td></tr><tr><td>Ecuador</td><td>Greece</td><td>Spain</td><td>New Zealand</td></tr><tr><td>Guatemala</td><td>Hungary</td><td>Sweden</td><td>Philippines</td></tr><tr><td>Mexico</td><td>Ireland</td><td>Switzerland</td><td>Singapore</td></tr><tr><td>Peru</td><td>Israel</td><td>Turkey</td><td>South Korea</td></tr><tr><td>Uruguay</td><td>Italy</td><td>Ukraine</td><td>Taiwan</td></tr><tr><td>Venezuela</td><td>Luxembourg</td><td>United Kingdom</td><td>Thailand</td></tr><tr><td></td><td>Netherlands</td><td></td><td>Vietnam</td></tr></table>
In maintaining our foreign operations, we face risks inherent in these operations, such as currency fluctuations. Information on currency exchange risk appears in Part II, Item 7A of this Annual Report on Form 10-K, which information is incorporated herein by reference. Other risks attendant to our foreign operations are set forth in Part I, Item 1A, ‘‘Risk Factors,’’ of this Annual Report on Form 10-K, which information is incorporated herein by reference. Financial information showing net sales and total long-lived assets by geographic region for each of the three years ended December 31, 2009 appears in Note 3, ‘‘Segments,’’ of Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K, which information is incorporated herein by reference. We maintain programs to comply with the various laws, rules and regulations related to the protection of the environment that we may be subject to in the many countries in which we operate. See ‘‘Environmental Matters,’’ below. Employees As of December 31, 2009, we had approximately 16,200 employees worldwide. Approximately 6,800 of these employees were in the U. S. , with approximately 100 of these employees covered by collective bargaining agreements. Of the approximately 9,400 employees who were outside the U. S. , approximately 6,200 were covered by collective bargaining agreements. Outside of the U. S. , many of the covered employees are represented by works councils or industrial boards, as is customary in the jurisdictions in which they are employed. We believe that our employee relations are satisfactory. Marketing, Distribution and Customers At December 31, 2009, we employed approximately 2,600 sales, marketing and customer service personnel throughout the world who sell and market our products to and through a large number of distributors, fabricators, converters, e-commerce and mail order fulfillment firms, and contract packaging firms as well as directly to end-users such as food processors, food service businesses, supermarket retailers, pharmaceutical companies, medical device manufacturers and other manufacturers. To support our food packaging, food solutions and new ventures customers, we operate two food science laboratories and three Packforum innovation and learning centers across three regions that assist customers in identifying the appropriate packaging materials and systems to meet their needs. We also offer ideation services and customized graphic design services to our customers. To assist our marketing efforts for our protective packaging products and to provide specialized customer services, we operate 33 package design and development laboratories worldwide within our facilities. These laboratories are staffed by professional packaging engineers and equipped with drop-testing and other equipment used to develop and test cost-effective package designs to meet the particular protective packaging requirements of each customer. Maturity requirements on long-term debt as of December 31, 2018 by year are as follows (in thousands):
<table><tr><td>2019</td><td>$124,176</td></tr><tr><td>2020</td><td>159,979</td></tr><tr><td>2021</td><td>195,848</td></tr><tr><td>2022</td><td>267,587</td></tr><tr><td>2023</td><td>3,945,053</td></tr><tr><td>2024 and thereafter</td><td>475,000</td></tr><tr><td>Total</td><td>$5,167,643</td></tr></table>
Credit Facility We are party to a credit facility agreement with Bank of America, N. A. , as administrative agent, and a syndicate of financial institutions as lenders and other agents (as amended from time to time, the “Credit Facility”). As of December 31, 2018, the Credit Facility provided for secured financing comprised of (i) a $1.5 billion revolving credit facility (the “Revolving Credit Facility”); (ii) a $1.5 billion term loan (the “Term A Loan”), (iii) a $1.37 billion term loan (the “Term A-2 Loan”), (iv) a $1.14 billion term loan facility (the “Term B-2 Loan”) and (v) a $500 million term loan (the “Term B-4 Loan”). Substantially all of the assets of our domestic subsidiaries are pledged as collateral under the Credit Facility. The borrowings outstanding under our Credit Facility as of December 31, 2018 reflect amounts borrowed for acquisitions and other activities we completed in 2018, including a reduction to the interest rate margins applicable to our Term A Loan, Term A-2 Loan, Term B-2 Loan and the Revolving Credit Facility, an extension of the maturity dates of the Term A Loan, Term A-2 Loan and the Revolving Credit Facility, and an increase in the total financing capacity under the Credit Facility to approximately $5.5 billion in June 2018. In October 2018, we entered into an additional term loan under the Credit Facility in the amount of $500 million (the “Term B-4 Loan”). We used the proceeds from the Term B-4 Loan to pay down a portion of the balance outstanding under our Revolving Credit Facility. The Credit Facility provides for an interest rate, at our election, of either LIBOR or a base rate, in each case plus a margin. As of December 31, 2018, the interest rates on the Term A Loan, the Term A-2 Loan, the Term B-2 Loan and the Term B-4 Loan were 4.02%, 4.01%, 4.27% and 4.27%, respectively, and the interest rate on the Revolving Credit Facility was 3.92%. In addition, we are required to pay a quarterly commitment fee with respect to the unused portion of the Revolving Credit Facility at an applicable rate per annum ranging from 0.20% to 0.30% depending on our leverage ratio. The Term A Loan and the Term A-2 Loan mature, and the Revolving Credit Facility expires, on January 20, 2023. The Term B-2 Loan matures on April 22, 2023. The Term B-4 Loan matures on October 18, 2025. The Term A Loan and Term A-2 Loan principal amounts must each be repaid in quarterly installments in the amount of 0.625% of principal through June 2019, increasing to 1.25% of principal through June 2021, increasing to 1.875% of principal through June 2022 and increasing to 2.50% of principal through December 2022, with the remaining principal balance due upon maturity in January 2023. The Term B-2 Loan principal must be repaid in quarterly installments in the amount of 0.25% of principal through March 2023, with the remaining principal balance due upon maturity in April 2023. The Term B-4 Loan principal must be repaid in quarterly installments in the amount of 0.25% of principal through September 2025, with the remaining principal balance due upon maturity in October 2025. We may issue standby letters of credit of up to $100 million in the aggregate under the Revolving Credit Facility. Outstanding letters of credit under the Revolving Credit Facility reduce the amount of borrowings available to us. Borrowings available to us under the Revolving Credit Facility are further limited by the covenants described below under “Compliance with Covenants. ” The total available commitments under the Revolving Credit Facility at December 31, 2018 were $783.6 million. Table of Contents Distribution Fees. Distribution fees decreased by $4.4 million or 6.9% to $59.3 million for the period ended December 31, 2012 from $63.7 million for the year ended December 31, 2011. Due to the continuing sovereign debt concerns and the competitive environment in Europe, trading volume in Eurobonds significantly decreased over the past several years. Monthly distribution fees paid by most of our European brokerdealer market makers were reduced effective March 1, 2012, but the dealer variable fee schedule remained unchanged. Information and Post-Trade Services. Information and Post-Trade Services increased by $0.2 million or 3.3% to $7.4 million for the year ended December 31, 2012 from $7.2 million for the year ended December 31, 2011. Technology Products and Services. Technology products and services revenues decreased by $0.1 million or 1.9% to $5.0 million for the year ended December 31, 2012 from $5.1 million for the year ended December 31, 2011. Investment Income. Investment income decreased by $0.2 million or 13.9% to $1.1 million for the year ended December 31, 2012 from $1.2 million for the year ended December 31, 2011. Other. Other revenues increased by $0.2 million or 8.3% to $3.2 million for the year ended December 31, 2012 from $2.9 million for the year ended December 31, 2011. Expenses Our expenses for the years ended December 31, 2012 and 2011, and the resulting dollar and percentage changes, were as follows:
<table><tr><td></td><td colspan="6"> Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2012</td><td colspan="2">2011</td><td></td><td></td></tr><tr><td></td><td></td><td>% of</td><td></td><td>% of</td><td> $</td><td> %</td></tr><tr><td></td><td> $</td><td>Revenues</td><td> $</td><td>Revenues</td><td> Change</td><td> Change</td></tr><tr><td></td><td colspan="6"> ($ in thousands)</td></tr><tr><td> Expenses</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employee compensation and benefits</td><td>$54,678</td><td>28.7%</td><td>$52,443</td><td>30.5%</td><td>$2,235</td><td>4.3%</td></tr><tr><td>Depreciation and amortization</td><td>6,758</td><td>3.5</td><td>5,206</td><td>3.0</td><td>1,552</td><td>29.8</td></tr><tr><td>Technology and communications</td><td>12,523</td><td>6.6</td><td>10,619</td><td>6.2</td><td>1,904</td><td>17.9</td></tr><tr><td>Professional and consulting fees</td><td>12,150</td><td>6.4</td><td>9,006</td><td>5.2</td><td>3,144</td><td>34.9</td></tr><tr><td>Occupancy</td><td>2,446</td><td>1.3</td><td>2,337</td><td>1.4</td><td>109</td><td>4.7</td></tr><tr><td>Marketing and advertising</td><td>5,169</td><td>2.7</td><td>4,491</td><td>2.6</td><td>678</td><td>15.1</td></tr><tr><td>General and administrative</td><td>7,746</td><td>4.1</td><td>6,322</td><td>3.7</td><td>1,424</td><td>22.5</td></tr><tr><td>Total expenses</td><td>$101,470</td><td>53.2%</td><td>$90,424</td><td>52.6%</td><td>$11,046</td><td>12.2%</td></tr></table>
Employee Compensation and Benefits. Employee compensation and benefits increased by $2.2 million or 4.3% to $54.7 million for the year ended December 31, 2012 from $52.4 million for the year ended December 31, 2011. This increase was primarily attributable to higher wages, employment taxes and benefits and incentive compensation aggregating $1.9 million and higher stock-based compensation expense of $1.6 million, offset by increased wage capitalization related to software development of $1.3 million. The increase in stock-based compensation expense was principally due to the cancelation of unvested stock options, restricted stock and performance shares related to the June 2011 resignation of the Company’s president. The total number of employees increased to 206 as of December 31, 2012 from 189 as of December 31, 2011. As a percentage of total revenues, employee compensation and benefits expense decreased to 28.7% for the year ended December 31, 2012 from 30.5% for the year ended December 31, 2011. Depreciation and Amortization. Depreciation and amortization expense increased by $1.6 million or 29.8% to $6.8 million for the year ended December 31, 2012 from $5.2 million for the year ended December 31, 2011. The increase was primarily due to an increase in amortization of software development costs of $0.9 million and an increase in depreciation for production hardware equipment of $0.4 million. For the years ended December 31, 2012 and 2011, we capitalized $5.2 million and $4.1 million, respectively, of software development costs. For the years ended December 31, 2012 and 2011, we capitalized $5.2 million and $3.2 million, respectively, of equipment and leasehold improvements. The higher equipment purchases were primarily due to the build-out of a replacement disaster recovery data center. decreased by 7.4% for the year ended December 31, 2013 compared to the year ended December 31, 2012, due mainly to lower trading volumes in U. S. agency bonds. Estimated U. S. agency TRACE volumes declined by 33.6% in 2013. |
0.8028 | what was the percentage change in the allowance for loan losses from 2007 to 2008? | ABIOMED, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements—(Continued) Note 11. Strategic Investment (Continued) The Company estimated the fair value of the embedded derivative and warrant associated with the WorldHeart transaction using the BlackScholes option valuation model at the initial dates of investment. The fair value of the embedded derivative and warrant were calculated using the following weighted-average assumptions:
<table><tr><td></td><td colspan="2">Conversion Feature</td><td colspan="2"> Warrant</td></tr><tr><td></td><td>December 11, 2007</td><td>January 3, 2008</td><td>December 11, 2007</td><td> January 3, 2008</td></tr><tr><td>Stock price</td><td>$2.59</td><td>$2.39</td><td>$2.59</td><td>$2.39</td></tr><tr><td>Exercise Price</td><td>$1.75</td><td>$1.75</td><td>$0.01</td><td>$0.01</td></tr><tr><td>Risk-free interest rate</td><td>2.94%</td><td>2.83%</td><td>3.32%</td><td>3.26%</td></tr><tr><td>Expected option life (years)</td><td>2.00</td><td>1.94</td><td>5.00</td><td>4.94</td></tr><tr><td>Expected volatility</td><td>91.7%</td><td>97.1%</td><td>131.9%</td><td>131.3%</td></tr></table>
Note 12. Stock Award Plans and Stock Based Compensation Stock Option Plans Virtually all outstanding stock options of the Company as of March 31, 2008 were granted with an exercise price equal to the fair market value on the date of grant. For options and restricted stock granted below fair market value, compensation expense is recognized ratably over the vesting period. Outstanding stock options, if not exercised, expire 10 years from the date of grant. The 1992 Combination Stock Option Plan (the “Combination Plan”), as amended, was adopted in September 1992 as a combination and amendment of the Company’s then outstanding Incentive Stock Option Plan and Nonqualified Plan. A total of 2,670,859 options were awarded from the Combination Plan during its ten year restatement term that ended on May 1, 2002. As of March 31, 2008, 141,300 of these options remain outstanding, fully vested and eligible for future exercise. The 1998 Equity Incentive Plan, (the “Equity Incentive Plan”), was adopted by the Company in August 1998. The Equity Incentive Plan provides for grants of options to key employees, directors, advisors and consultants as either incentive stock options or nonqualified stock options as determined by the Company’s Board of Directors. A maximum of 1,000,000 shares of common stock may be awarded under this plan. Options granted under the Equity Incentive Plan are exercisable at such times and subject to such terms as the Board of Directors may specify at the time of each stock option grant. Options outstanding under the Equity Incentive Plan have vesting periods of three to five years from the date of grant and options awarded expire ten years from the date of grant. The 2000 Stock Incentive Plan, (the “2000 Plan”), as amended, was adopted by the Company in August 2000. The 2000 Plan provides for grants of options to key employees, directors, advisors and consultants to the Company or its subsidiaries as either incentive or nonqualified stock options as determined by the Company’s Board of Directors. Up to 4,900,000 shares of common stock may be awarded under the 2000 Plan and are exercisable at such times and subject to such terms as the Board of Directors may specify at the time of each stock option grant. Options outstanding under the 2000 Plan generally vest four years from the date of grant and options awarded expire ten years from the date of grant. The Company has a nonqualified stock option plan for non-employee directors (the “Directors’ Plan”). The Directors’ Plan, as amended, was adopted in July 1989 and provides for grants of options to purchase shares of the Company’s common stock to non-employee Directors of the Company. Up to 400,000 shares of common stock may be awarded under the Directors’ Plan. Options outstanding under the Director’s Plan have vesting periods of one to five years from the date of grant and options expire ten years from the date of grant. 18. ALLOWANCE FOR CREDIT LOSSES
<table><tr><td>In millions of dollars</td><td>2009</td><td>2008-1</td><td>2007-1</td></tr><tr><td>Allowance for loan losses at beginning of year</td><td>$29,616</td><td>$16,117</td><td>$8,940</td></tr><tr><td>Gross credit losses</td><td>-32,784</td><td>-20,760</td><td>-11,864</td></tr><tr><td>Gross recoveries</td><td>2,043</td><td>1,749</td><td>1,938</td></tr><tr><td>Net credit (losses) recoveries (NCLs)</td><td>$-30,741</td><td>$-19,011</td><td>$-9,926</td></tr><tr><td>NCLs</td><td>$30,741</td><td>$19,011</td><td>$9,926</td></tr><tr><td>Net reserve builds (releases)</td><td>5,741</td><td>11,297</td><td>6,550</td></tr><tr><td>Net specific reserve builds (releases)</td><td>2,278</td><td>3,366</td><td>356</td></tr><tr><td>Total provision for credit losses</td><td>$38,760</td><td>$33,674</td><td>$16,832</td></tr><tr><td>Other, net-2</td><td>-1,602</td><td>-1,164</td><td>271</td></tr><tr><td>Allowance for loan losses at end of year</td><td>$36,033</td><td>$29,616</td><td>$16,117</td></tr><tr><td>Allowance for credit losses on unfunded lending commitments at beginning of year-3</td><td>$887</td><td>$1,250</td><td>$1,100</td></tr><tr><td>Provision for unfunded lending commitments</td><td>244</td><td>-363</td><td>150</td></tr><tr><td>Allowance for credit losses on unfunded lending commitments at end of year-3</td><td>$1,157</td><td>$887</td><td>$1,250</td></tr><tr><td>Total allowance for loans, leases, and unfunded lending commitments</td><td>$37,190</td><td>$30,503</td><td>$17,367</td></tr></table>
(1) Reclassified to conform to the current period’s presentation. (2) 2009 primarily includes reductions to the loan loss reserve of approximately $543 million related to securitizations, approximately $402 million related to the sale or transfers to held-for-sale of U. S. Real Estate Lending Loans, and $562 million related to the transfer of the U. K. Cards portfolio to held-for-sale.2008 primarily includes reductions to the loan loss reserve of approximately $800 million related to FX translation, $102 million related to securitizations, $244 million for the sale of the German retail banking operation, $156 million for the sale of CitiCapital, partially offset by additions of $106 million related to the Cuscatlán and Bank of Overseas Chinese acquisitions.2007 primarily includes reductions to the loan loss reserve of $475 million related to securitizations and transfers to loans held-for-sale, and reductions of $83 million related to the transfer of the U. K. CitiFinancial portfolio to held-for-sale, offset by additions of $610 million related to the acquisitions of Egg, Nikko Cordial, Grupo Cuscatlán and Grupo Financiero Uno. (3) Represents additional credit loss reserves for unfunded corporate lending commitments and letters of credit recorded in Other liabilities on the Consolidated Balance Sheet. INSTITUTIONAL CLIENTS GROUP Institutional Clients Group (ICG) includes Securities and Banking and Transaction Services. ICG provides corporate, institutional and high-net-worth clients with a full range of products and services, including cash management, trading, underwriting, lending and advisory services, around the world. ICG’s international presence is supported by trading floors in approximately 75 countries and a proprietary network within Transaction Services in over 90 countries. At December 31, 2009, ICG had approximately $866 billion of assets and $442 billion of deposits.
<table><tr><td>In millions of dollars</td><td>2009</td><td>2008</td><td>2007</td><td>% Change 2009 vs. 2008</td><td>% Change 2008 vs. 2007</td></tr><tr><td>Commissions and fees</td><td>$2,075</td><td>$2,876</td><td>$3,156</td><td>-28%</td><td>-9%</td></tr><tr><td>Administration and other fiduciary fees</td><td>4,964</td><td>5,413</td><td>5,014</td><td>-8</td><td>8</td></tr><tr><td>Investment banking</td><td>4,685</td><td>3,329</td><td>5,399</td><td>41</td><td>-38</td></tr><tr><td>Principal transactions</td><td>6,001</td><td>6,544</td><td>7,012</td><td>-8</td><td>-7</td></tr><tr><td>Other</td><td>1,971</td><td>-1,021</td><td>1,169</td><td>NM</td><td>NM</td></tr><tr><td>Total non-interest revenue</td><td>$19,696</td><td>$17,141</td><td>$21,750</td><td>15%</td><td>-21%</td></tr><tr><td>Net interest revenue (including dividends)</td><td>17,739</td><td>17,740</td><td>11,704</td><td>—</td><td>52</td></tr><tr><td>Total revenues, net of interest expense</td><td>$37,435</td><td>$34,881</td><td>$33,454</td><td>7%</td><td>4%</td></tr><tr><td>Total operating expenses</td><td>17,568</td><td>20,955</td><td>20,812</td><td>-16</td><td>1</td></tr><tr><td>Net credit losses</td><td>723</td><td>917</td><td>310</td><td>-21</td><td>NM</td></tr><tr><td>Provision for unfunded lending commitments</td><td>138</td><td>-191</td><td>79</td><td>NM</td><td>NM</td></tr><tr><td>Credit reservebuild</td><td>857</td><td>1,149</td><td>167</td><td>-25</td><td>NM</td></tr><tr><td>Provision for benefits and claims</td><td>—</td><td>—</td><td>1</td><td>—</td><td>-100</td></tr><tr><td>Provisions for loan losses and benefits and claims</td><td>$1,718</td><td>$1,875</td><td>$557</td><td>-8%</td><td>NM</td></tr><tr><td>Income from continuing operations before taxes</td><td>$18,149</td><td>$12,051</td><td>$12,085</td><td>51%</td><td>—</td></tr><tr><td>Income taxes</td><td>5,261</td><td>2,746</td><td>3,116</td><td>92</td><td>-12%</td></tr><tr><td>Income from continuing operations</td><td>$12,888</td><td>$9,305</td><td>$8,969</td><td>39%</td><td>4%</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>68</td><td>18</td><td>45</td><td>NM</td><td>-60</td></tr><tr><td>Net income</td><td>$12,820</td><td>$9,287</td><td>$8,924</td><td>38%</td><td>4%</td></tr><tr><td>Average assets(in billions of dollars)</td><td>$839</td><td>$1,037</td><td>$1,154</td><td>-19%</td><td>-10%</td></tr><tr><td>Return on assets</td><td>1.53%</td><td>0.90%</td><td>0.77%</td><td></td><td></td></tr><tr><td>Revenues by region</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$11,926</td><td>$13,148</td><td>$10,644</td><td>-9%</td><td>24%</td></tr><tr><td>EMEA</td><td>13,424</td><td>9,683</td><td>10,755</td><td>39</td><td>-10</td></tr><tr><td>Latin America</td><td>4,784</td><td>3,808</td><td>4,360</td><td>26</td><td>-13</td></tr><tr><td>Asia</td><td>7,301</td><td>8,242</td><td>7,695</td><td>-11</td><td>7</td></tr><tr><td>Total</td><td>$37,435</td><td>$34,881</td><td>$33,454</td><td>7%</td><td>4%</td></tr><tr><td>Income from continuing operations by region</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$3,032</td><td>$2,598</td><td>$1,896</td><td>17%</td><td>37%</td></tr><tr><td>EMEA</td><td>4,680</td><td>1,902</td><td>2,411</td><td>NM</td><td>-21</td></tr><tr><td>Latin America</td><td>2,116</td><td>1,636</td><td>1,899</td><td>29</td><td>-14</td></tr><tr><td>Asia</td><td>3,060</td><td>3,169</td><td>2,763</td><td>-3</td><td>15</td></tr><tr><td>Total</td><td>$12,888</td><td>$9,305</td><td>$8,969</td><td>39%</td><td>4%</td></tr><tr><td>Average loans by region(in billions of dollars)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$45</td><td>$50</td><td>$51</td><td>-10%</td><td>-2%</td></tr><tr><td>EMEA</td><td>44</td><td>54</td><td>56</td><td>-19</td><td>-4</td></tr><tr><td>Latin America</td><td>21</td><td>24</td><td>26</td><td>-13</td><td>-8</td></tr><tr><td>Asia</td><td>28</td><td>37</td><td>38</td><td>-24</td><td>-3</td></tr><tr><td>Total</td><td>$138</td><td>$165</td><td>$171</td><td>-16%</td><td>-4%</td></tr></table> |
10,490.5 | What's the sum of Decreases in current period tax positions, and Net sales of Year Ended December 31, 2014 ? | The following table summarizes the changes in the Company’s valuation allowance:
<table><tr><td>Balance at January 1, 2010</td><td>$25,621</td></tr><tr><td>Increases in current period tax positions</td><td>907</td></tr><tr><td>Decreases in current period tax positions</td><td>-2,740</td></tr><tr><td>Balance at December 31, 2010</td><td>$23,788</td></tr><tr><td>Increases in current period tax positions</td><td>1,525</td></tr><tr><td>Decreases in current period tax positions</td><td>-3,734</td></tr><tr><td>Balance at December 31, 2011</td><td>$21,579</td></tr><tr><td>Increases in current period tax positions</td><td>0</td></tr><tr><td>Decreases in current period tax positions</td><td>-2,059</td></tr><tr><td>Balance at December 31, 2012</td><td>$19,520</td></tr></table>
Note 14: Employee Benefits Pension and Other Postretirement Benefits The Company maintains noncontributory defined benefit pension plans covering eligible employees of its regulated utility and shared services operations. Benefits under the plans are based on the employee’s years of service and compensation. The pension plans have been closed for most employees hired on or after January 1, 2006. Union employees hired on or after January 1, 2001 had their accrued benefit frozen and will be able to receive this benefit as a lump sum upon termination or retirement. Union employees hired on or after January 1, 2001 and non-union employees hired on or after January 1, 2006 are provided with a 5.25% of base pay defined contribution plan. The Company does not participate in a multiemployer plan. The Company’s funding policy is to contribute at least the greater of the minimum amount required by the Employee Retirement Income Security Act of 1974 or the normal cost, and an additional contribution if needed to avoid “at risk” status and benefit restrictions under the Pension Protection Act of 2006. The Company may also increase its contributions, if appropriate, to its tax and cash position and the plan’s funded position. Pension plan assets are invested in a number of actively managed and indexed investments including equity and bond mutual funds, fixed income securities and guaranteed interest contracts with insurance companies. Pension expense in excess of the amount contributed to the pension plans is deferred by certain regulated subsidiaries pending future recovery in rates charged for utility services as contributions are made to the plans. (See Note 6) The Company also has several unfunded noncontributory supplemental non-qualified pension plans that provide additional retirement benefits to certain employees. The Company maintains other postretirement benefit plans providing varying levels of medical and life insurance to eligible retirees. The retiree welfare plans are closed for union employees hired on or after January 1, 2006. The plans had previously closed for non-union employees hired on or after January 1, 2002. The Company’s policy is to fund other postretirement benefit costs for rate-making purposes. Plan assets are invested in equity and bond mutual funds, fixed income securities, real estate investment trusts (“REITs”) and emerging market funds. The obligations of the plans are dominated by obligations for active employees. Because the timing of expected benefit payments is so far in the future and the size of the plan assets are small relative to the Company’s assets, the investment strategy is to allocate a significant percentage of assets to equities, which the Company believes will provide the highest return over the long-term period. The fixed income assets are invested in long duration debt securities and may be invested in fixed income instruments, such as futures and options in order to better match the duration of the plan liability. The allocation of goodwill in accordance with SFAS No.142 for the years ended December 31, 2006 and 2005 was as follows:
<table><tr><td> </td><td> Balance at Beginning of Period</td><td> Goodwill Acquired</td><td> Foreign Currency Translation and Other</td><td> Balance at End of Period</td></tr><tr><td>Year Ended December 31, 2006</td><td></td><td></td><td></td><td></td></tr><tr><td>Food Packaging</td><td>$540.4</td><td>$31.9</td><td>$14.9</td><td>$587.2</td></tr><tr><td>Protective Packaging</td><td>1,368.4</td><td>0.4</td><td>1.1</td><td>1,369.9</td></tr><tr><td>Total</td><td>$1,908.8</td><td>$32.3</td><td>$16.0</td><td>$1,957.1</td></tr><tr><td>Year Ended December 31, 2005</td><td></td><td></td><td></td><td></td></tr><tr><td>Food Packaging</td><td>$549.8</td><td>$0.7</td><td>$-10.1</td><td>$540.4</td></tr><tr><td>Protective Packaging</td><td>1,368.2</td><td>0.8</td><td>-0.6</td><td>1,368.4</td></tr><tr><td>Total</td><td>$1,918.0</td><td>$1.5</td><td>$-10.7</td><td>$1,908.8</td></tr></table>
See Note 20, “Acquisitions,” for additional information on the goodwill acquired during 2006. Note 4 Short Term Investments—Available-for-Sale Securities At December 31, 2006 and 2005, the Company’s available-for-sale securities consisted of auction rate securities for which interest or dividend rates are generally re-set for periods of up to 90 days. At December 31, 2006, the Company held $33.9 million of auction rate securities which were investments in preferred stock with no maturity dates. At December 31, 2005, the Company held $44.1 million of auction rate securities, of which $34.7 million were investments in preferred stock with no maturity dates and $9.4 million were investments in other auction rate securities with contractual maturities in 2031. At December 31, 2006 and 2005, the fair value of the available-for-sale securities held by the Company was equal to their cost. There were no gross realized gains or losses from the sale of availablefor-sale securities in 2006 and 2005. Note 5 Accounts Receivable Securitization Program In December 2001, the Company and a group of its U. S. subsidiaries entered into an accounts receivable securitization program with a bank and an issuer of commercial paper administered by the bank. On December 7, 2004, which was the scheduled expiration date of this program, the parties extended this program for an additional term of three years ending December 7, 2007. Under this receivables program, the Company’s two primary operating subsidiaries, Cryovac, Inc. and Sealed Air Corporation (US), sell all of their eligible U. S. accounts receivable to Sealed Air Funding Corporation, an indirectly wholly-owned subsidiary of the Company that was formed for the sole purpose of entering into the receivables program. Sealed Air Funding in turn may sell undivided ownership interests in these receivables to the bank and the issuer of commercial paper, subject to specified conditions, up to a maximum of $125.0 million of receivables interests outstanding from time to time. Sealed Air Funding retains the receivables it purchases from the operating subsidiaries, except those as to which it sells receivables interests to the bank or the issuer of commercial paper. The Company has structured the sales of accounts receivable by the operating subsidiaries to Sealed Air Funding, and the sales of receivables interests from Sealed Air Funding to the bank and the issuer of commercial paper, as “true sales” under applicable laws. The assets of Sealed Air Funding are not available to pay any creditors of the Company or of the Company’s other subsidiaries or affiliates. The Company accounts for these transactions as sales of receivables under the provisions of SFAS No.140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishment of Liabilities. ” Product Care 2016 compared with 2015 As reported, net sales decreased $30 million, or 2%, in 2016 compared with 2015, of which $22 million was due to negative currency impact. On a constant dollar basis, net sales decreased $8 million, or 1%, in 2016 compared with 2015 primarily due to the following: ? unfavorable price/mix of $29 million primarily in North America driven by targeted pricing incentives and an unfavorable product mix related to accelerated growth in e-Commerce and a shift in demand due to more innovative, resource-efficient solutions. This was partially offset by: ? higher unit volumes of $21 million, primarily in North America and EMEA due to ongoing strength in the e-Commerce and third party logistics markets, partially offset by rationalization and weakness in the industrial sector, as well as declines in Latin America due to the political and economic environment.2015 compared with 2014 As reported, net sales decreased $109 million, or 7%, in 2015 compared with 2014, of which $99 million was due to negative currency impact. On a constant dollar basis, net sales decreased $10 million, or 1%, in 2015 compared with 2014 primarily due to the following: ? lower unit volumes due to rationalization efforts in North America, Latin America and to a lesser extent, EMEA and weaknesses across the industrial sector. This was partially offset by: ? favorable price/mix in all regions, primarily in North America and Latin America reflecting results from our focus on maintaining pricing disciplines and an increase of sales from high-performance packaging solutions, including cushioning and packaging systems as compared to sales from general packaging solutions, and the progression of our pricing and value initiatives implemented to offset non-material inflationary costs as well as currency devaluation. Cost of Sales Cost of sales for the years ended December 31, were as follows:
<table><tr><td></td><td colspan="3">Year Ended December 31,</td><td rowspan="2">2016 vs. 2015 % Change</td><td rowspan="2">2015 vs. 2014 % Change</td></tr><tr><td>(In millions)</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td>Net sales</td><td>$6,778.3</td><td>$7,031.5</td><td>$7,750.5</td><td>-3.6%</td><td>-9.3%</td></tr><tr><td>Cost of sales</td><td>4,246.7</td><td>4,444.9</td><td>5,062.9</td><td>-4.5%</td><td>-12.2%</td></tr><tr><td>As a % of net sales</td><td>62.7%</td><td>63.2%</td><td>65.3%</td><td></td><td></td></tr><tr><td>Gross Profit</td><td>$2,531.6</td><td>$2,586.6</td><td>$2,687.6</td><td>-2.1%</td><td>-3.8%</td></tr></table>
2016 compared with 2015 As reported, costs of sales decreased $198 million in 2016 as compared to 2015. Cost of sales was impacted by favorable foreign currency translation of $163 million. On a constant dollar basis, cost of sales decreased $35 million primarily due to the divestiture of the North American foam trays and absorbent pads business and European food trays business of $79 million, offset by an increase of $51 million in expenses representing higher non-material manufacturing and direct costs, including salary and wage inflation, partially offset by restructuring savings and lower incentive based compensation.2015 compared with 2014 As reported, costs of sales decreased $618 million in 2015 as compared to 2014. Cost of sales was impacted by favorable foreign currency translation of $492 million. On a constant dollar basis, cost of sales decreased $126 million primarily due to the divestiture of the North American foam trays and absorbent pads business and European food trays business of $140 million and favorable impact of $31 million related to cost savings, freight, and other supply chain costs. These were partially offset by $47 million in expenses related to higher non-material manufacturing costs, including salary and wage inflation. |
1,878 | how much were investment advisory revenues in 2007 , in millions of dollars? | DUKE ENERGY CORPORATION· DUKE ENERGY CAROLINAS, LLC· PROGRESS ENERGY INC. · DUKE ENERGY PROGRESS, LLC· DUKE ENERGY FLORIDA, LLC· DUKE ENERGY OHIO, INC. · DUKE ENERGY INDIANA, LLC· PIEDMONT NATURAL GAS COMPANY, INC. Combined Notes to Consolidated Financial Statements – (Continued) 25. QUARTERLY FINANCIAL DATA (UNAUDITED) DUKE ENERGY Quarterly EPS amounts may not sum to the full-year total due to changes in the weighted average number of common shares outstanding and rounding.
<table><tr><td>(in millions, except per share data)</td><td>First Quarter</td><td>Second Quarter</td><td>Third Quarter</td><td>Fourth Quarter</td><td>Total</td></tr><tr><td>2017</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues</td><td>$5,729</td><td>$5,555</td><td>$6,482</td><td>$5,799</td><td>$23,565</td></tr><tr><td>Operating income</td><td>1,437</td><td>1,387</td><td>1,695</td><td>1,262</td><td>5,781</td></tr><tr><td>Income from continuing operations</td><td>717</td><td>691</td><td>957</td><td>705</td><td>3,070</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>—</td><td>-2</td><td>-2</td><td>-2</td><td>-6</td></tr><tr><td>Net income</td><td>717</td><td>689</td><td>955</td><td>703</td><td>3,064</td></tr><tr><td>Net income attributable to Duke Energy Corporation</td><td>716</td><td>686</td><td>954</td><td>703</td><td>3,059</td></tr><tr><td>Earnings per share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations attributable to Duke Energy Corporation common stockholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$1.02</td><td>$0.98</td><td>$1.36</td><td>$1.00</td><td>$4.37</td></tr><tr><td>Diluted</td><td>$1.02</td><td>$0.98</td><td>$1.36</td><td>$1.00</td><td>$4.37</td></tr><tr><td>Loss from discontinued operations attributable to Duke Energy Corporation common stockholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$-0.01</td></tr><tr><td>Diluted</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$-0.01</td></tr><tr><td>Net income attributable to Duke Energy Corporation common stockholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$1.02</td><td>$0.98</td><td>$1.36</td><td>$1.00</td><td>$4.36</td></tr><tr><td>Diluted</td><td>$1.02</td><td>$0.98</td><td>$1.36</td><td>$1.00</td><td>$4.36</td></tr><tr><td>2016</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues</td><td>$5,377</td><td>$5,213</td><td>$6,576</td><td>$5,577</td><td>$22,743</td></tr><tr><td>Operating income</td><td>1,240</td><td>1,259</td><td>1,954</td><td>888</td><td>5,341</td></tr><tr><td>Income from continuing operations</td><td>577</td><td>624</td><td>1,001</td><td>376</td><td>2,578</td></tr><tr><td>Income (Loss) from discontinued operations, net of tax</td><td>122</td><td>-112</td><td>180</td><td>-598</td><td>-408</td></tr><tr><td>Net income (loss)</td><td>699</td><td>512</td><td>1,181</td><td>-222</td><td>2,170</td></tr><tr><td>Net income (loss) attributable to Duke Energy Corporation</td><td>694</td><td>509</td><td>1,176</td><td>-227</td><td>2,152</td></tr><tr><td>Earnings per share:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income from continuing operations attributable to Duke Energy Corporation common stockholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$0.83</td><td>$0.90</td><td>$1.44</td><td>$0.53</td><td>$3.71</td></tr><tr><td>Diluted</td><td>$0.83</td><td>$0.90</td><td>$1.44</td><td>$0.53</td><td>$3.71</td></tr><tr><td>Income (Loss) from discontinued operations attributable to Duke Energy Corporation common stockholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$0.18</td><td>$-0.16</td><td>$0.26</td><td>$-0.86</td><td>$-0.60</td></tr><tr><td>Diluted</td><td>$0.18</td><td>$-0.16</td><td>$0.26</td><td>$-0.86</td><td>$-0.60</td></tr><tr><td>Net income (loss) attributable to Duke Energy Corporation common stockholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$1.01</td><td>$0.74</td><td>$1.70</td><td>$-0.33</td><td>$3.11</td></tr><tr><td>Diluted</td><td>$1.01</td><td>$0.74</td><td>$1.70</td><td>$-0.33</td><td>$3.11</td></tr></table>
The following table includes unusual or infrequently occurring items in each quarter during the two most recently completed fiscal years. All amounts discussed below are pretax.
<table><tr><td>(in millions)</td><td>First Quarter</td><td>Second Quarter</td><td>Third Quarter</td><td>Fourth Quarter</td><td>Total</td></tr><tr><td>2017</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Costs to Achieve Piedmont Merger (see Note 2)</td><td>$-16</td><td>$-30</td><td>$-23</td><td>$-34</td><td>$-103</td></tr><tr><td>Regulatory Settlements (see Note 4)</td><td>—</td><td>—</td><td>-135</td><td>-23</td><td>-158</td></tr><tr><td>Commercial Renewables Impairments (see Notes 10 and 11)</td><td>—</td><td>—</td><td>-84</td><td>-18</td><td>-102</td></tr><tr><td>Impacts of the Tax Act (see Note 22)</td><td>—</td><td>—</td><td>—</td><td>102</td><td>102</td></tr><tr><td>Total</td><td>$-16</td><td>$-30</td><td>$-242</td><td>$27</td><td>$-261</td></tr><tr><td>2016</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Costs to Achieve Mergers (see Note 2)</td><td>$-120</td><td>$-111</td><td>$-84</td><td>$-208</td><td>$-523</td></tr><tr><td>Commercial Renewables Impairment (see Note 12)</td><td>—</td><td>—</td><td>-71</td><td>—</td><td>-71</td></tr><tr><td>Loss on Sale of International Disposal Group (see Note 2)</td><td>—</td><td>—</td><td>—</td><td>-514</td><td>-514</td></tr><tr><td>Impairment of Assets in Central America (see Note 2)</td><td>—</td><td>-194</td><td>—</td><td>—</td><td>-194</td></tr><tr><td>Cost Savings Initiatives (see Note 19)</td><td>-20</td><td>-24</td><td>-19</td><td>-29</td><td>-92</td></tr><tr><td>Total</td><td>$-140</td><td>$-329</td><td>$-174</td><td>$-751</td><td>$-1,394</td></tr></table>
DUKE ENERGY CAROLINAS
<table><tr><td>(in millions)</td><td>First Quarter</td><td>Second Quarter</td><td>Third Quarter</td><td>Fourth Quarter</td><td>Total</td></tr><tr><td>2017</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues</td><td>$1,716</td><td>$1,729</td><td>$2,136</td><td>$1,721</td><td>$7,302</td></tr><tr><td>Operating income</td><td>484</td><td>485</td><td>777</td><td>403</td><td>2,149</td></tr><tr><td>Net income</td><td>270</td><td>273</td><td>466</td><td>205</td><td>1,214</td></tr><tr><td>2016</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Operating revenues</td><td>$1,740</td><td>$1,675</td><td>$2,226</td><td>$1,681</td><td>$7,322</td></tr><tr><td>Operating income</td><td>481</td><td>464</td><td>815</td><td>302</td><td>2,062</td></tr><tr><td>Net income</td><td>271</td><td>261</td><td>494</td><td>140</td><td>1,166</td></tr></table>
The following table includes unusual or infrequently occurring items in each quarter during the two most recently completed fiscal years. All amounts discussed below are pretax.
<table><tr><td>(in millions)</td><td>First Quarter</td><td>Second Quarter</td><td>Third Quarter</td><td>Fourth Quarter</td><td>Total</td></tr><tr><td>2017</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Costs to Achieve Piedmont Merger (see Note 2)</td><td>$-4</td><td>$-6</td><td>$-5</td><td>$-5</td><td>$-20</td></tr><tr><td>Impacts of the Tax Act (see Note 22)</td><td>—</td><td>—</td><td>—</td><td>-15</td><td>-15</td></tr><tr><td>Total</td><td>$-4</td><td>$-6</td><td>$-5</td><td>$-20</td><td>$-35</td></tr><tr><td>2016</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Costs to Achieve Mergers</td><td>$-11</td><td>$-12</td><td>$-13</td><td>$-68</td><td>$-104</td></tr><tr><td>Cost Savings Initiatives (see Note 19)</td><td>-10</td><td>-10</td><td>-8</td><td>-11</td><td>-39</td></tr><tr><td>Total</td><td>$-21</td><td>$-22</td><td>$-21</td><td>$-79</td><td>$-143</td></tr></table>
PART II The following table shows the percent changes in GWh sales and average number of customers for Duke Energy Carolinas. The below percentages for retail customer classes represent billed sales only. Total sales includes billed and unbilled retail sales and wholesale sales to incorporated municipalities and to public and private utilities and power marketers. Amounts are not weather-normalized.
<table><tr><td>Increase (Decrease) over prior year</td><td>2017</td><td>2016</td></tr><tr><td>Residential sales</td><td>-4.8%</td><td>0.1%</td></tr><tr><td>General service sales</td><td>-1.8%</td><td>0.7%</td></tr><tr><td>Industrial sales</td><td>-0.8%</td><td>-0.9%</td></tr><tr><td>Wholesale power sales</td><td>6.3%</td><td>9.8%</td></tr><tr><td>Joint dispatch sales</td><td>18.2%</td><td>-2.3%</td></tr><tr><td>Total sales</td><td>-1.4%</td><td>1.8%</td></tr><tr><td>Average number of customers</td><td>1.5%</td><td>1.4%</td></tr></table>
Year Ended December 31, 2017, as Compared to 2016 Operating Revenues. The variance was driven primarily by: ? a $179 million decrease in retail sales, net of fuel revenues, due to less favorable weather in the current year. Partially offset by: ? a $74 million increase in rider revenues and retail pricing primarily related to energy efficiency programs; ? a $41 million increase in weather-normal sales volumes to retail customers, net of fuel revenues; ? a $30 million increase in fuel revenues primarily due to changes in generation mix partially offset by lower retail sales; and ? a $7 million increase in wholesale power revenues, net of sharing and fuel, primarily due to additional volumes for customers served under long-term contracts. Operating Expenses. The variance was driven primarily by: ? a $145 million decrease in operations, maintenance and other expense primarily due to lower expenses at generating plants, lower costs associated with merger commitments related to the Piedmont acquisition in 2016, lower severance expenses, and lower employee benefit costs, partially offset by higher energy efficiency program costs. Partially offset by: ? a $25 million increase in fuel expense (including purchased power) primarily due to changes in generation mix, partially offset by lower retail sales; and ? a $15 million increase in depreciation and amortization expense primarily due to additional plant in service, partially offset by lower amortization of certain regulatory assets. Other Income and Expenses. The variance was primarily due to a decrease in recognition of post in-service equity returns for projects that had been completed prior to being reflected in customer rates. Income Tax Expense. The variance was primarily due to an increase in pretax income and the impact of the Tax Act, offset by the impact of research credits and the manufacturing deduction. See the Subsidiary Registrants section above for additional information on the Tax Act and the impact on the effective tax rate. Matters Impacting Future Results An order from regulatory authorities disallowing recovery of costs related to closure of ash impoundments could have an adverse impact on Duke Energy Carolinas’ financial position, results of operations and cash flows. See Notes 4 and 9 to the Consolidated Financial Statements, “Regulatory Matters” and “Asset Retirement Obligations,” respectively, for additional information. On May 18, 2016, the NCDEQ issued proposed risk classifications for all coal ash surface impoundments in North Carolina. All ash impoundments not previously designated as high priority by the Coal Ash Act were designated as intermediate risk. Certain impoundments classified as intermediate risk, however, may be reassessed in the future as low risk pursuant to legislation enacted on July 14, 2016. Duke Energy Carolinas’ estimated AROs related to the closure of North Carolina ash impoundments are based upon the mandated closure method or a probability weighting of potential closure methods for the impoundments that may be reassessed to low risk. As the final risk ranking classifications in North Carolina are delineated, final closure plans and corrective action measures are developed and approved for each site, the closure work progresses, and the closure method scope and remedial action methods are determined, the complexity of work and the amount of coal combustion material could be different than originally estimated and, therefore, could materially impact Duke Energy Carolinas’ financial position. See Note 9 to the Consolidated Financial Statements, “Asset Retirement Obligations,” for additional information. Duke Energy Carolinas is a party to multiple lawsuits and subject to fines and other penalties related to operations at certain North Carolina facilities with ash basins. The outcome of these lawsuits, fines and penalties could have an adverse impact on Duke Energy Carolinas’ financial position, results of operations and cash flows. See Note 5 to the Consolidated Financial Statements, “Commitments and Contingencies,” for additional information. Duke Energy Carolinas filed a general rate case on August 25, 2017, to recover costs of complying with CCR regulations and the Coal Ash Act, as well as costs of capital investments in generation, transmission and distribution systems and any increase in expenditures subsequent to previous rate cases. Duke Energy Carolinas’ earnings could be adversely impacted if the rate increase is delayed or denied by the NCUC. Within this Item 7, see the Tax Cuts and Jobs Act above as well as Liquidity and Capital Resources below for risks associated with the Tax Act. Our non-operating investment activity resulted in net losses of $12.7 million in 2009 and $52.3 million in 2008. The improvement of nearly $40 million is primarily attributable to a reduction in the other than temporary impairments recognized on our investments in sponsored mutual funds in 2009 versus 2008. The following table details our related mutual fund investment gains and losses (in millions) during the past two years.
<table><tr><td></td><td>2008</td><td>2009</td><td>Change</td></tr><tr><td>Other than temporary impairments recognized</td><td>$-91.3</td><td>$-36.1</td><td>$55.2</td></tr><tr><td>Capital gain distributions received</td><td>5.6</td><td>2.0</td><td>-3.6</td></tr><tr><td>Net gain (loss) realized on fund dispositions</td><td>-4.5</td><td>7.4</td><td>11.9</td></tr><tr><td>Net loss recognized on fund holdings</td><td>$-90.2</td><td>$-26.7</td><td>$63.5</td></tr></table>
Lower income of $16 million from our money market holdings due to the significantly lower interest rate environment offset the improvement experienced with our fund investments. There is no impairment of any of our mutual fund investments at December 31, 2009. The 2009 provision for income taxes as a percentage of pretax income is 37.1%, down from 38.4% in 2008 and .9% lower than our present estimate of 38.0% for the 2010 effective tax rate. Our 2009 provision includes reductions of prior years’ tax provisions and discrete nonrecurring benefits that lowered our 2009 effective tax rate by 1.0%.2008 versus 2007. Investment advisory revenues decreased 6.3%, or $118 million, to $1.76 billion in 2008 as average assets under our management decreased $16 billion to $358.2 billion. The average annualized fee rate earned on our assets under management was 49.2 basis points in 2008, down from the 50.2 basis points earned in 2007, as lower equity market valuations resulted in a greater percentage of our assets under management being attributable to lower fee fixed income portfolios. Continuing stress on the financial markets and resulting lower equity valuations as 2008 progressed resulted in lower average assets under our management, lower investment advisory fees and lower net income as compared to prior periods. Net revenues decreased 5%, or $112 million, to $2.12 billion. Operating expenses were $1.27 billion in 2008, up 2.9% or $36 million from 2007. Net operating income for 2008 decreased $147.9 million, or 14.8%, to $848.5 million. Higher operating expenses in 2008 and decreased market valuations during the latter half of 2008, which lowered our assets under management and advisory revenues, resulted in our 2008 operating margin declining to 40.1% from 44.7% in 2007. Non-operating investment losses in 2008 were $52.3 million as compared to investment income of $80.4 million in 2007. Investment losses in 2008 include non-cash charges of $91.3 million for the other than temporary impairment of certain of the firm’s investments in sponsored mutual funds. Net income in 2008 fell 27% or nearly $180 million from 2007. Diluted earnings per share, after the retrospective application of new accounting guidance effective in 2009, decreased to $1.81, down $.59 or 24.6% from $2.40 in 2007. A non-operating charge to recognize other than temporary impairments of our sponsored mutual fund investments reduced diluted earnings per share by $.21 in 2008. Investment advisory revenues earned from the T. Rowe Price mutual funds distributed in the United States decreased 8.5%, or $114.5 million, to $1.24 billion. Average mutual fund assets were $216.1 billion in 2008, down $16.7 billion from 2007. Mutual fund assets at December 31, 2008, were $164.4 billion, down $81.6 billion from the end of 2007. Net inflows to the mutual funds during 2008 were $3.9 billion, including $1.9 billion to the money funds, $1.1 billion to the bond funds, and $.9 billion to the stock funds. The Value, Equity Index 500, and Emerging Markets stock funds combined to add $4.1 billion, while the Mid-Cap Growth and Equity Income stock funds had net redemptions of $2.2 billion. Net fund inflows of $6.2 billion originated in our target-date Retirement Funds, which in turn invest in other T. Rowe Price funds. Fund net inflow amounts in 2008 are presented net of $1.3 billion that was transferred to target-date trusts from the Retirement Funds during the year. Decreases in market valuations and income not reinvested lowered our mutual fund assets under management by $85.5 billion during 2008. Investment advisory revenues earned on the other investment portfolios that we manage decreased $3.6 million to $522.2 million. Average assets in these portfolios were $142.1 billion during 2008, up slightly from $141.4 billion in 2007. These minor changes, each less than 1%, are attributable to the timing of declining equity market valuations and cash flows among our separate account and subadvised portfolios. Net inflows, primarily from institutional investors, were $13.2 billion during 2008, including the $1.3 billion transferred from the Retirement Funds to target-date trusts. Decreases in market valuations, net of income, lowered our assets under management in these portfolios by $55.3 billion during 2008. |
2,577.58859 | If Investment Bank for Total develops with the same increasing rate in 2009, what will it reach in 2010? (in million) | THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Management’s Discussion and Analysis The table below presents our average monthly assets under supervision by asset class.
<table><tr><td></td><td>Average for theYear Ended December</td></tr><tr><td><i>$ in billions</i></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Alternative investments</td><td>$ 162</td><td>$ 149</td><td>$ 145</td></tr><tr><td>Equity</td><td>292</td><td>256</td><td>247</td></tr><tr><td>Fixed income</td><td>633</td><td>578</td><td>530</td></tr><tr><td>Total long-term AUS</td><td>1,087</td><td>983</td><td>922</td></tr><tr><td>Liquidity products</td><td>330</td><td>326</td><td>272</td></tr><tr><td>Total AUS</td><td>$1,417</td><td>$1,309</td><td>$1,194</td></tr></table>
Operating Environment. During 2017, Investment Management operated in an environment characterized by generally higher asset prices, resulting in appreciation in both equity and fixed income assets. In addition, our longterm assets under supervision increased from net inflows primarily in fixed income and alternative investment assets. These increases were partially offset by net outflows in liquidity products. As a result, the mix of average assets under supervision during 2017 shifted slightly from liquidity products to long-term assets under supervision as compared to the mix at the end of 2016. In the future, if asset prices decline, or investors favor assets that typically generate lower fees or investors withdraw their assets, net revenues in Investment Management would likely be negatively impacted. Following a challenging first quarter of 2016, market conditions improved during the remainder of 2016 with higher asset prices resulting in full year appreciation in both equity and fixed income assets. Also, our assets under supervision increased during 2016 from net inflows, primarily in fixed income assets, and liquidity products. The mix of our average assets under supervision shifted slightly compared with 2015 from long-term assets under supervision to liquidity products. Management fees were impacted by many factors, including inflows to advisory services and outflows from actively-managed mutual funds.2017 versus 2016. Net revenues in Investment Management were $6.22 billion for 2017, 7% higher than 2016, due to higher management and other fees, reflecting higher average assets under supervision, and higher transaction revenues. During the year, total assets under supervision increased $115 billion to $1.49 trillion. Longterm assets under supervision increased $128 billion, including net market appreciation of $86 billion, primarily in equity and fixed income assets, and net inflows of $42 billion (which includes $20 billion of inflows in connection with the Verus acquisition and $5 billion of equity asset outflows in connection with the Australian divestiture), primarily in fixed income and alternative investment assets. Liquidity products decreased $13 billion (which includes $3 billion of inflows in connection with the Verus acquisition). Operating expenses were $4.80 billion for 2017, 3% higher than 2016, primarily due to increased compensation and benefits expenses, reflecting higher net revenues. Pre-tax earnings were $1.42 billion in 2017, 25% higher than 2016.2016 versus 2015. Net revenues in Investment Management were $5.79 billion for 2016, 7% lower than 2015. This decrease primarily reflected significantly lower incentive fees compared with a strong 2015. In addition, management and other fees were slightly lower, reflecting shifts in the mix of client assets and strategies, partially offset by the impact of higher average assets under supervision. During 2016, total assets under supervision increased $127 billion to $1.38 trillion. Long-term assets under supervision increased $75 billion, including net inflows of $42 billion, primarily in fixed income assets, and net market appreciation of $33 billion, primarily in equity and fixed income assets. In addition, liquidity products increased $52 billion. Operating expenses were $4.65 billion for 2016, 4% lower than 2015, due to decreased compensation and benefits expenses, reflecting lower net revenues. Pre-tax earnings were $1.13 billion in 2016, 17% lower than 2015. Geographic Data See Note 25 to the consolidated financial statements for a summary of our total net revenues, pre-tax earnings and net earnings by geographic region. ferred capital debt securities, as issuances of FDIC-guaranteed debt and non-FDIC guaranteed debt in both the U. S. and European markets were more than offset by redemptions. Cash proceeds resulted from an increase in securities loaned or sold under repurchase agreements, partly attributable to favorable pricing and to financing the increased size of the Firm’s AFS securities portfolio; and the issuance of $5.8 billion of common stock. There were no repurchases in the open market of common stock or the warrants during 2009. In 2008, net cash provided by financing activities was $247.8 billion due to: growth in wholesale deposits, in particular, interest- and noninterest-bearing deposits in TSS (driven by both new and existing clients, and due to the deposit inflows related to the heightened volatility and credit concerns affecting the global markets that began in the third quarter of 2008), as well as increases in AM and CB (due to organic growth); proceeds of $25.0 billion from the issuance of preferred stock and the Warrant to the U. S. Treasury under the Capital Purchase Program; additional issuances of common stock and preferred stock used for general corporate purposes; an increase in other borrowings due to nonrecourse secured advances under the Federal Reserve Bank of Boston AML Facility to fund the purchase of asset-backed commercial paper from money market mutual funds; increases in federal funds purchased and securities loaned or sold under repurchase agreements in connection with higher client demand for liquidity and to finance growth in the Firm’s AFS securities portfolio; and a net increase in long-term debt due to a combination of non-FDIC guaranteed debt and trust preferred capital debt securities issued prior to December 4, 2008, and the issuance of $20.8 billion of FDIC-guaranteed long-term debt issued during the fourth quarter of 2008. The fourth-quarter FDIC-guaranteed debt issuance was offset partially by maturities of non-FDIC guaranteed long-term debt during the same period. The increase in long-term debt (including trust preferred capital debt securities) was used primarily to fund certain illiquid assets held by the parent holding company and to build liquidity. Cash was also used to pay dividends on common and preferred stock. The Firm did not repurchase any shares of its common stock during 2008. In 2007, net cash provided by financing activities was $184.1 billion due to a net increase in wholesale deposits from growth in business volumes, in particular, interest-bearing deposits at TSS, AM and CB; net issuances of long-term debt (including trust preferred capital debt securities) primarily to fund certain illiquid assets held by the parent holding company and build liquidity, and by IB from client-driven structured notes transactions; and growth in commercial paper issuances and other borrowed funds due to growth in the volume of liability balances in sweep accounts in TSS and CB, and to fund trading positions and to further build liquidity. Cash was used to repurchase common stock and pay dividends on common stock. Credit ratings The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected. For additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements, see Special-purpose entities on pages 86–87 and Ratings profile of derivative receivables marked to market (“MTM”), and Note 5 on page 111 and pages 175–183, respectively, of this Annual Report. Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital ratios, strong credit quality and risk management controls, diverse funding sources, and disciplined liquidity monitoring procedures. The credit ratings of the parent holding company and each of the Firm’s significant banking subsidiaries as of January 15, 2010, were as follows.
<table><tr><td></td><td colspan="3">Short-term debt</td><td colspan="3">Senior long-term debt</td></tr><tr><td></td><td>Moody’s</td><td>S&P</td><td>Fitch</td><td>Moody’s</td><td>S&P</td><td>Fitch</td></tr><tr><td>JPMorgan Chase & Co.</td><td>P-1</td><td>A-1</td><td>F1+</td><td>Aa3</td><td>A+</td><td>AA-</td></tr><tr><td>JPMorgan Chase Bank, N.A.</td><td>P-1</td><td>A-1+</td><td>F1+</td><td>Aa1</td><td>AA-</td><td>AA-</td></tr><tr><td>Chase Bank USA, N.A.</td><td>P-1</td><td>A-1+</td><td>F1+</td><td>Aa1</td><td>AA-</td><td>AA-</td></tr></table>
Ratings actions affecting the Firm On March 4, 2009, Moody’s revised the outlook on the Firm to negative from stable. This action was the result of Moody’s view that the Firm’s ability to generate capital would be adversely affected by higher credit costs due to the global recession. The rating action by Moody’s in the first quarter of 2009 did not have a material impact on the cost or availability of the Firm’s funding. At December 31, 2009, Moody’s outlook remained negative. Ratings from S&P and Fitch on JPMorgan Chase and its principal bank subsidiaries remained unchanged at December 31, 2009, from December 31, 2008. At December 31, 2009, S&P’s outlook remained negative, while Fitch’s outlook remained stable. Following the Firm’s earnings release on January 15, 2010, S&P and Moody’s announced that their ratings on the Firm remained unchanged. If the Firm’s senior long-term debt ratings were downgraded by one additional notch, the Firm believes the incremental cost of funds or loss of funding would be manageable, within the context of current market conditions and the Firm’s liquidity resources. JPMorgan Chase’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable Management’s discussion and analysis JPMorgan Chase & Co. /2009 Annual Report 122 Residential real estate loan modification activities: During 2009, the Firm reviewed its residential real estate portfolio to identify homeowners most in need of assistance, opened new regional counseling centers, hired additional loan counselors, introduced new financing alternatives, proactively reached out to borrowers to offer pre-qualified modifications, and commenced a new process to independently review each loan before moving it into the foreclosure process. In addition, during the first quarter of 2009, the U. S. Treasury introduced the MHA programs, which are designed to assist eligible homeowners in a number of ways, one of which is by modifying the terms of their mortgages. The Firm is participating in the MHA programs while continuing to expand its other loss-mitigation efforts for financially distressed borrowers who do not qualify for the MHA programs. The MHA programs and the Firm’s other loss-mitigation programs for financially troubled borrowers generally represent various concessions such as term extensions, rate reductions and deferral of principal payments that would have otherwise been required under the terms of the original agreement. When the Firm modifies home equity lines of credit in troubled debt restructurings, future lending commitments related to the modified loans are canceled as part of the terms of the modification. Under all of these programs, borrowers must make at least three payments under the revised contractual terms during a trial modification period and be successfully re-underwritten with income verification before their loans can be permanently modified. The Firm’s loss-mitigation programs are intended to minimize economic loss to the Firm, while providing alternatives to foreclosure. The success of these programs is highly dependent on borrowers’ ongoing ability and willingness to repay in accordance with the modified terms and could be adversely affected by additional deterioration in the economic environment or shifts in borrower behavior. For both the Firm’s on-balance sheet loans and loans serviced for others, approximately 600,000 mortgage modifications had been offered to borrowers in 2009. Of these, 89,000 have achieved permanent modification. Substantially all of the loans contractually modified to date were modified under the Firm’s other loss mitigation programs. The following table presents information relating to restructured on-balance sheet residential real estate loans for which concessions have been granted to borrowers experiencing financial difficulty as of December 31, 2009. Modifications of purchased credit-impaired loans continue to be accounted for and reported as purchased credit-impaired loans, and the impact of the modification is incorporated into the Firm’s quarterly assessment of whether a probable and/or significant change in estimated future principal cash flows has occurred. Modifications of loans other than purchased credit-impaired are generally accounted for and reported as troubled debt restructurings. Restructured residential real estate loans(a)
<table><tr><td> December 31, 2009</td><td rowspan="2">On-balance sheet loans</td><td rowspan="2">Nonperforming on-balance sheet loans<sup>(d)</sup></td></tr><tr><td>(in millions)</td></tr><tr><td> Restructured residential real estate loans – excludingpurchased credit-impaired loans<sup>(b)</sup></td><td></td><td></td></tr><tr><td>Home equity – senior lien</td><td>$168</td><td>$30</td></tr><tr><td>Home equity – junior lien</td><td>222</td><td>43</td></tr><tr><td>Prime mortgage</td><td>634</td><td>243</td></tr><tr><td>Subprime mortgage</td><td>1,998</td><td>598</td></tr><tr><td>Option ARMs</td><td>8</td><td>6</td></tr><tr><td> Total restructured residential real estate loans – excluding purchased credit-impaired loans</td><td>$3,030</td><td>$920</td></tr><tr><td> Restructured purchased credit-impaired loans<sup>(c)</sup></td><td></td><td></td></tr><tr><td>Home equity</td><td>$453</td><td>NA</td></tr><tr><td>Prime mortgage</td><td>1,526</td><td>NA</td></tr><tr><td>Subprime mortgage</td><td>1,954</td><td>NA</td></tr><tr><td>Option ARMs</td><td>2,972</td><td>NA</td></tr><tr><td> Total restructured purchased credit-impaired loans</td><td>$6,905</td><td>NA</td></tr></table>
(a) Restructured residential real estate loans were immaterial at December 31, 2008. (b) Amounts represent the carrying value of restructured residential real estate loans. (c) Amounts represent the unpaid principal balance of restructured purchased credit-impaired loans. (d) Nonperforming loans modified in a troubled debt restructuring may be returned to accrual status when repayment is reasonably assured and the borrower has made a minimum of six payments under the new terms. Real estate owned (“REO”): As part of the residential real estate foreclosure process, loans are written down to the fair value of the underlying real estate asset, less costs to sell. In those instances where the Firm gains title, ownership and possession of individual properties at the completion of the foreclosure process, these REO assets are managed for prompt sale and disposition at the best possible economic value. Any further gains or losses on REO assets are recorded as part of other income. Operating expense, such as real estate taxes and maintenance, are charged to other expense. REO assets declined from year-end 2008 as a result of the foreclosure moratorium in early 2009 and the subsequent increase in loss mitigation activities. It is anticipated that REO assets will increase over the next several quarters, as loans moving through the foreclosure process are expected to increase. The calculation of the allowance for loan losses to total retained loans, excluding both home lending purchased credit-impaired loans and loans held by the Washington Mutual Master Trust, is presented below.
<table><tr><td>December 31, (in millions, except ratios)</td><td>2009</td><td>2008</td></tr><tr><td>Allowance for loan losses</td><td>$31,602</td><td>$23,164</td></tr><tr><td>Less: Allowance for purchased credit-impaired loans</td><td>1,581</td><td>—</td></tr><tr><td>Adjusted allowance for loan losses</td><td>$30,021</td><td>$23,164</td></tr><tr><td>Total loans retained</td><td>$627,218</td><td>$728,915</td></tr><tr><td>Less: Firmwide purchased credit-impaired loans</td><td>81,380</td><td>89,088</td></tr><tr><td>Loans held by the Washington Mutual Master Trust</td><td>1,002</td><td>—</td></tr><tr><td>Adjusted loans</td><td>$544,836</td><td>$639,827</td></tr><tr><td> Allowance for loan losses to ending loans excluding purchased credit-impaired loans and loans held by the Washington Mutual Master Trust</td><td>5.51%</td><td>3.62%</td></tr></table>
The following table presents the allowance for credit losses by business segment at December 31, 2009 and 2008.
<table><tr><td></td><td colspan="6">Allowance for credit losses</td></tr><tr><td></td><td colspan="3"> 2009</td><td colspan="3">2008</td></tr><tr><td>December 31,</td><td></td><td>Lending-related</td><td></td><td></td><td>Lending-related</td><td></td></tr><tr><td>(in millions)</td><td>Loan losses</td><td>commitments</td><td>Total</td><td>Loan losses</td><td>commitments</td><td>Total</td></tr><tr><td>Investment Bank</td><td>$3,756</td><td>$485</td><td>$4,241</td><td>$3,444</td><td>$360</td><td>$3,804</td></tr><tr><td>Commercial Banking</td><td>3,025</td><td>349</td><td>3,374</td><td>2,826</td><td>206</td><td>3,032</td></tr><tr><td>Treasury & Securities Services</td><td>88</td><td>84</td><td>172</td><td>74</td><td>63</td><td>137</td></tr><tr><td>Asset Management</td><td>269</td><td>9</td><td>278</td><td>191</td><td>5</td><td>196</td></tr><tr><td>Corporate/Private Equity</td><td>7</td><td>—</td><td>7</td><td>10</td><td>—</td><td>10</td></tr><tr><td> Total Wholesale</td><td>7,145</td><td>927</td><td>8,072</td><td>6,545</td><td>634</td><td>7,179</td></tr><tr><td>Retail Financial Services</td><td>14,776</td><td>12</td><td>14,788</td><td>8,918</td><td>25</td><td>8,943</td></tr><tr><td>Card Services</td><td>9,672</td><td>—</td><td>9,672</td><td>7,692</td><td>—</td><td>7,692</td></tr><tr><td>Corporate/Private Equity</td><td>9</td><td>—</td><td>9</td><td>9</td><td>—</td><td>9</td></tr><tr><td> Total Consumer</td><td>24,457</td><td>12</td><td>24,469</td><td>16,619</td><td>25</td><td>16,644</td></tr><tr><td> Total</td><td>$31,602</td><td>$939</td><td>$32,541</td><td>$23,164</td><td>$659</td><td>$23,823</td></tr></table>
Provision for credit losses The managed provision for credit losses was $38.5 billion for the year ended December 31, 2009, up by $13.9 billion from the prior year. The prior-year included a $1.5 billion charge to conform Washington Mutual’s allowance for loan losses, which affected both the consumer and wholesale portfolios. For the purpose of the following analysis, this charge is excluded. The consumer-managed provision for credit losses was $34.5 billion for the year ended December 31, 2009, compared with $20.4 billion in the prior year, reflecting an increase in the allowance for credit losses in the home lending and credit card loan portfolios. Included in the 2009 addition to the allowance for loan losses was a $1.6 billion increase related to estimated deterioration in the Washington Mutual purchased credit-impaired portfolio. The wholesale provision for credit losses was $4.0 billion for the year ended December 31, 2009, compared with $2.7 billion in the prior year, reflecting continued weakness in the credit environment.
<table><tr><td>Year ended December 31,</td><td colspan="9">Provision for credit losses</td></tr><tr><td>(in millions)</td><td colspan="3">Loan losses</td><td colspan="3">Lending-related commitments</td><td colspan="3">Total</td></tr><tr><td></td><td>2009</td><td>2008</td><td>2007</td><td>2009</td><td>2008</td><td>2007</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Investment Bank</td><td>$2,154</td><td>$2,216</td><td>$376</td><td>$125</td><td>$-201</td><td>$278</td><td>$2,279</td><td>$2,015</td><td>$654</td></tr><tr><td>Commercial Banking</td><td>1,314</td><td>505</td><td>230</td><td>140</td><td>-41</td><td>49</td><td>1,454</td><td>464</td><td>279</td></tr><tr><td>Treasury & Securities Services</td><td>34</td><td>52</td><td>11</td><td>21</td><td>30</td><td>8</td><td>55</td><td>82</td><td>19</td></tr><tr><td>Asset Management</td><td>183</td><td>87</td><td>-19</td><td>5</td><td>-2</td><td>1</td><td>188</td><td>85</td><td>-18</td></tr><tr><td>Corporate/Private Equity<sup>(a)(b)</sup></td><td>-1</td><td>676</td><td>—</td><td>-1</td><td>5</td><td>—</td><td>-2</td><td>681</td><td>—</td></tr><tr><td> Total Wholesale</td><td>3,684</td><td>3,536</td><td>598</td><td>290</td><td>-209</td><td>336</td><td>3,974</td><td>3,327</td><td>934</td></tr><tr><td>Retail Financial Services</td><td>15,950</td><td>9,906</td><td>2,620</td><td>-10</td><td>-1</td><td>-10</td><td>15,940</td><td>9,905</td><td>2,610</td></tr><tr><td>CardServices – reported</td><td>12,019</td><td>6,456</td><td>3,331</td><td>—</td><td>—</td><td>—</td><td>12,019</td><td>6,456</td><td>3,331</td></tr><tr><td>Corporate/Private Equity<sup>(a)(c)(d)</sup></td><td>82</td><td>1,339</td><td>-11</td><td>—</td><td>-48</td><td>—</td><td>82</td><td>1,291</td><td>-11</td></tr><tr><td> Total Consumer</td><td>28,051</td><td>17,701</td><td>5,940</td><td>-10</td><td>-49</td><td>-10</td><td>28,041</td><td>17,652</td><td>5,930</td></tr><tr><td> Total provision for creditlosses – reported</td><td>31,735</td><td>21,237</td><td>6,538</td><td>280</td><td>-258</td><td>326</td><td>32,015</td><td>20,979</td><td>6,864</td></tr><tr><td>Credit card– securitized</td><td>6,443</td><td>3,612</td><td>2,380</td><td>—</td><td>—</td><td>—</td><td>6,443</td><td>3,612</td><td>2,380</td></tr><tr><td> Total provision for creditlosses – managed</td><td>$38,178</td><td>$24,849</td><td>$8,918</td><td>$280</td><td>$-258</td><td>$326</td><td>$38,458</td><td>$24,591</td><td>$9,244</td></tr></table>
(a) Includes accounting conformity provisions related to the Washington Mutual transaction in 2008. (b) Includes provision expense related to loans acquired in the Bear Stearns merger in the second quarter of 2008. (c) Includes amounts related to held-for-investment prime mortgages transferred from AM to the Corporate/Private Equity segment. (d) In November 2008, the Firm transferred $5.8 billion of higher quality credit card loans from the legacy Chase portfolio to a securitization trust previously established by Washington Mutual (‘‘the Trust’’). As a result of converting higher credit quality Chase-originated on-book receivables to the Trust’s seller’s interest which has a higher overall loss rate reflective of the total assets within the Trust, approximately $400 million of incremental provision expense was recorded during the fourth quarter. This incremental provision expense was recorded in the Corporate segment as the action related to the acquisition of Washington Mutual’s banking operations. For further discussion of credit card securitizations, see Note 15 on pages 206---213 of this Annual Report. |
0.40541 | what portion of the compensation expense in 2017 is relates to the acceleration of equity awards upon termination of employment at baker hughes? | Supplemental Financial Data We view net interest income and related ratios and analyses (i. e. , efficiency ratio and net interest yield) on a FTE basis. Although these are non-GAAP measures, we believe managing the business with net interest income on a FTE basis provides a more accurate picture of the interest margin for comparative purposes. To derive the FTE basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, we use the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources. As mentioned above, certain per formance measures including the efficiency ratio and net interest yield utilize net interest income (and thus total revenue) on a FTE basis. The efficiency ratio measures the costs expended to generate a dollar of revenue, and net interest yield evaluates how many basis points we are earning over the cost of funds. During our annual planning process, we set efficiency targets for the Corporation and each line of business. We believe the use of these non-GAAP measures provides additional clarity in assessing our results. Targets vary by year and by business and are based on a variety of factors including maturity of the business, competitive environment, market factors and other items including our risk appetite. We also evaluate our business based on the following ratios that utilize tangible equity, a non-GAAP measure. Return on average tangible common shareholders’ equity measures our earnings contribution as a percentage of common shareholders’ equity plus any Common Equivalent Securities (CES) less goodwill and intangible assets, (excluding MSRs), net of related deferred tax liabilities. ROTE measures our earnings contribution as a percentage of average shareholders’ equity less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. The tangible common equity ratio represents common shareholders’ equity plus any CES less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. The tangible equity ratio represents total shareholders’ equity less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities. Tangible book value per common share represents ending common shareholders’ equity less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities divided by ending common shares outstanding plus the number of common shares issued upon conversion of common equivalent shares. These measures are used to evaluate our use of equity (i. e. , capital). In addition, profitability, relationship and investment models all use ROTE as key measures to support our overall growth goals. The aforementioned supplemental data and per formance measures are presented in Tables 6 and 7 and Statistical Tables XII and XIV. In addition, in Table 7 and Statistical Table XIV, we have excluded the impact of goodwill impairment charges of $12.4 billion recorded in 2010 when presenting earnings and diluted earnings per common share, the efficiency ratio, return on average assets, return on average common shareholders’ equity, return on average tangible common shareholders’ equity and ROTE. Accordingly, these are non-GAAP measures. Statistical Tables XIII and XV provide reconciliations of these non-GAAP measures with financial measures defined by GAAP. We believe the use of these non-GAAP measures provides additional clarity in assessing the results of the Corporation. Other companies may define or calculate these measures and ratios differently
<table><tr><td>(Dollars in millions, except per share information)</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td> Fully taxable-equivalent basis data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest income</td><td>$52,693</td><td>$48,410</td><td>$46,554</td><td>$36,190</td><td>$35,818</td></tr><tr><td>Total revenue, net of interest expense</td><td>111,390</td><td>120,944</td><td>73,976</td><td>68,582</td><td>74,000</td></tr><tr><td>Net interest yield<sup>-1</sup></td><td>2.78%</td><td>2.65%</td><td>2.98%</td><td>2.60%</td><td>2.82%</td></tr><tr><td>Efficiency ratio</td><td>74.61</td><td>55.16</td><td>56.14</td><td>54.71</td><td>48.37</td></tr><tr><td> Performance ratios, excluding goodwill impairment charges<sup>-2</sup></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Per common share information</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Earnings</td><td>$0.87</td><td></td><td></td><td></td><td></td></tr><tr><td>Diluted earnings</td><td>0.86</td><td></td><td></td><td></td><td></td></tr><tr><td>Efficiency ratio</td><td>63.48%</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average assets</td><td>0.42</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average common shareholders’ equity</td><td>4.14</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average tangible common shareholders’ equity</td><td>7.03</td><td></td><td></td><td></td><td></td></tr><tr><td>Return on average tangible shareholders’ equity</td><td>7.11</td><td></td><td></td><td></td><td></td></tr></table>
(1) Calculation includes fees earned on overnight deposits placed with the Federal Reserve of $368 million and $379 million for 2010 and 2009. The Corporation did not have fees earned on overnight deposits during 2008, 2007 and 2006. (2) Per formance ratios are calculated excluding the impact of goodwill impairment charges of $12.4 billion recorded during 2010. Baker Hughes, a GE company Notes to Consolidated and Combined Financial Statements issuance pursuant to awards granted under the LTI Plan over its term which expires on the date of the annual meeting of the Company in 2027. A total of 53.7 million shares of Class A common stock are available for issuance as of December 31, 2017. As a result of the acquisition of Baker Hughes, on July 3, 2017, each outstanding Baker Hughes stock option was converted into an option to purchase a share of Class A common stock in the Company. Consequently, we issued 6.8 million stock options which are fully vested. Each converted option is subject to the same terms and conditions as applied to the original option, and the per share exercise price of each converted option was reduced by $17.50 to reflect the per share amount of the special dividend pursuant to the agreement associated with the Transactions. Additionally, as a result of the acquisition of Baker Hughes, there were 1.7 million Baker Hughes restricted stock units (RSUs) that were converted to BHGE RSUs at a fair value of $40.18. Stock-based compensation cost is measured at the date of grant based on the calculated fair value of the award and is generally recognized on a straight-line basis over the vesting period of the equity grant. The compensation cost is determined based on awards ultimately expected to vest; therefore, we have reduced the cost for estimated forfeitures based on historical forfeiture rates. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods to reflect actual forfeitures. There were no stock-based compensation costs capitalized as the amounts were not material. During the year ended December 31, 2017, we issued 2.1 million RSUs and 1.6 million stock options under the LTI Plan. These RSUs and stock options generally vest in equal amounts over a three-year vesting period provided that the employee has remained continuously employed by the Company through such vesting date. Stock based compensation expense was $37 million in 2017. Included in this amount is $15 million of expense which relates to the acceleration of equity awards upon termination of employment of Baker Hughes employees with change in control agreements, and are included as part of "Merger and related costs" in the consolidated and combined statements of income (loss). As BHGE LLC is a pass through entity, any tax benefit would be recognized by its partners. Due to its cumulative losses, BHGE is unable to recognize a tax benefit on its share of stock related expenses. Stock Options The fair value of each stock option granted is estimated using the Black-Scholes option pricing model. The following table presents the weighted average assumptions used in the option pricing model for options granted under the LTI Plan. The expected life of the options represents the period of time the options are expected to be outstanding. The expected life is based on a simple average of the vesting term and original contractual term of the awards. The expected volatility is based on the historical volatility of our five main competitors over a six year period. The risk-free interest rate is based on the observed U. S. Treasury yield curve in effect at the time the options were granted. The dividend yield is based on a five year history of dividend payouts in Baker Hughes.
<table><tr><td></td><td>2017</td></tr><tr><td>Expected life (years)</td><td>6</td></tr><tr><td>Risk-free interest rate</td><td>2.1%</td></tr><tr><td>Volatility</td><td>36.4%</td></tr><tr><td>Dividend yield</td><td>1.2%</td></tr><tr><td>Weighted average fair value per share at grant date</td><td>$12.32</td></tr></table>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Fiscal years ended May 25, 2008, May 27, 2007, and May 28, 2006 Columnar Amounts in Millions Except Per Share Amounts The following table presents estimated future gross benefit payments and Medicare Part D subsidy receipts for the Company’s plans:
<table><tr><td></td><td></td><td colspan="2">Health Care and Life Insurance</td></tr><tr><td></td><td> Pension Benefits</td><td> Benefit Payments</td><td>Subsidy Receipts</td></tr><tr><td>2009</td><td>$125.1</td><td>$44.2</td><td>$-4.3</td></tr><tr><td>2010</td><td>129.2</td><td>45.1</td><td>-4.5</td></tr><tr><td>2011</td><td>133.7</td><td>45.4</td><td>-4.4</td></tr><tr><td>2012</td><td>137.7</td><td>45.2</td><td>-4.3</td></tr><tr><td>2013</td><td>143.3</td><td>43.7</td><td>-4.1</td></tr><tr><td>Succeeding 5 years</td><td>805.6</td><td>196.2</td><td>-18.2</td></tr></table>
Certain employees of the Company are covered under defined contribution plans. The expense related to these plans was $24.4 million, $22.9 million, and $25.9 million in fiscal 2008, 2007, and 2006, respectively.19. RELATED PARTY TRANSACTIONS Sales to affiliates (equity method investees) of $4.2 million, $3.8 million, and $2.9 million for fiscal 2008, 2007, and 2006, respectively, are included in net sales. The Company received management fees from affiliates of $16.3 million, $14.8 million, and $13.5 million in fiscal 2008, 2007, and 2006, respectively. Accounts receivable from affiliates totaled $3.2 million and $2.5 million at May 25, 2008 and May 27, 2007, respectively, of which $3.0 million and $2.1 million are included in current assets held for sale, respectively. Accounts payable to affiliates totaled $15.6 million and $13.5 million at May 25, 2008 and May 27, 2007, respectively. During the first quarter of fiscal 2007, the Company sold an aircraft for proceeds of approximately $8.1 million to a company on whose board of directors one of the Company’s directors sits. The Company recognized a gain of approximately $3.0 million on the transaction. The Company leases various buildings that are beneficially owned by Opus Corporation or entities related to Opus Corporation (the “Opus Entities”). The Opus Entities are affiliates or part of a large, national real estate development company. A former member of the Company’s Board of Directors, who left the board in the second quarter of fiscal 2008, is a beneficial owner, officer and chairman of Opus Corporation, and a director or officer of the related entities. The agreements relate to the leasing of land, buildings, and equipment for the Company in Omaha, Nebraska. The Company occupies the buildings pursuant to long-term leases with Opus Corporation and other investors, and the leases contain various termination rights and purchase options. The Company made rental payments of $13.5 million, $14.4 million, and $15.8 million in fiscal 2008, 2007, and 2006, respectively, to the Opus Entities. The Company has also contracted with the Opus Entities for construction and property management services. The Company made payments of $1.6 million, $2.8 million, and $3.0 million to the Opus Entities for these services in fiscal 2008, 2007, and 2006, respectively.20. BUSINESS SEGMENTS AND RELATED INFORMATION The Company’s operations are organized into three reporting segments: Consumer Foods, Food and Ingredients, and International Foods. The Consumer Foods reporting segment includes branded, private label, and customized food products which are sold in various retail and foodservice channels. The products include a variety of categories (meals, entrees, condiments, sides, snacks, and desserts) across frozen, refrigerated, and services revenue net of direct expenses reflecting higher financially reportable development revenue; and $65 million of stronger owned, leased, corporate housing and other revenue net of direct expenses. The fee improvement versus the prior year also reflects the recognition in 2005 of $14 million of incentive fees that were calculated based on prior period results, but not earned and due until 2005. The increase in owned, leased, corporate housing and other revenue net of direct expenses is primarily attributable to properties acquired in 2005, including the CTF properties, the strong demand environment in 2005, and our receipt in 2005, of a $10 million termination fee associated with one property that left our system. The favorable items noted above were partially offset by $146 million of increased general and administrative expenses and $46 million of lower synthetic fuel revenue net of synthetic fuel expenses. Increased general and administrative expenses were associated with our Lodging segments as unallocated general and administrative expenses were down slightly compared to the prior year. The increase in general, administrative and other expenses reflects a $94 million pre-tax charge impacting our Full-Service Lodging segment, primarily due to the non-cash write-off of deferred contract acquisition costs associated with the termination of management agreements (discussed more fully later in this report in the “CTF Holdings Ltd. ” discussion under the “Investing Activities Cash Flows” caption in the “Liquidity and Capital Resources” section), and $30 million of pre-tax expenses associated with our bedding incentive program, impacting our Full-Service, Select-Service and Extended-Stay Lodging segments. We implemented the bedding incentive program in 2005 to ensure that guests could enjoy the comfort and luxury of our new bedding by year-end 2005. General and administrative expenses in 2005 also reflect pre-tax performance termination cure payments of $15 million associated with two properties, a $9 million pre-tax charge associated with three guarantees, increased other net overhead costs of $13 million including costs related to the Company’s unit growth, development and systems, and $2 million of increased foreign exchange losses partially offset by $5 million of lower litigation expenses. Additionally, in 2004, general and administrative expenses included a $13 million charge associated with the write-off of deferred contract acquisition costs. Operating income for 2005 includes a synthetic fuel operating loss of $144 million versus $98 million of operating losses in the prior year, reflecting increased costs and the consolidation of our synthetic fuel operations from the start of the 2004 second quarter, which resulted in the recognition of revenue and expenses for all of 2005 versus only three quarters in 2004, as we accounted for the synthetic fuel operations using the equity method of accounting in the 2004 first quarter. For additional information, see our “Synthetic Fuel” segment discussion later in this report.2004 COMPARED TO 2003 Operating income increased $100 million to $477 million in 2004 from $377 million in 2003. The increase is primarily due to higher fees, which are related both to stronger RevPAR, driven by increased occupancy and average daily rate, and to the growth in the number of rooms, and strong timeshare results, which are mainly attributable to strong demand and improved margins, partially offset by higher general and administrative expenses. General, administrative and other expenses increased $84 million in 2004 to $607 million from $523 million in 2003, primarily reflecting higher administrative expenses in our Full-Service, Select-Service, and Extended-Stay segments ($55 million) and Timeshare segment ($24 million), primarily associated with increased overhead costs related to the Company’s unit growth and timeshare development, and a $10 million reduction in foreign exchange gains, offset by $6 million of lower litigation expenses. Higher general and administrative expenses of $84 million also reflect a $13 million writeoff of deferred contract acquisition costs as further discussed in the “2004 Compared to 2003” caption under the “Select-Service Lodging” heading later in this report. Gains and Other Income The following table shows our gains and other income for 2005, 2004, and 2003. |
3 | What is the row number of the section for which the Fair Value exceeds 30 % of total Fair Value in 2011? | Aeronautics’ operating profit for 2012 increased $69 million, or 4%, compared to 2011. The increase was attributable to higher operating profit of approximately $105 million from C-130 programs due to an increase in risk retirements; about $50 million from F-16 programs due to higher aircraft deliveries partially offset by a decline in risk retirements; approximately $50 million from F-35 production contracts due to increased production volume and risk retirements; and about $50 million from the completion of purchased intangible asset amortization on certain F-16 contracts. Partially offsetting the increases was lower operating profit of about $90 million from the F-35 development contract primarily due to the inception-to-date effect of reducing the profit booking rate in the second quarter of 2012; approximately $50 million from decreased production volume and risk retirements on the F-22 program partially offset by a resolution of a contractual matter in the second quarter of 2012; and approximately $45 million primarily due to a decrease in risk retirements on other sustainment activities partially offset by various other Aeronautics programs due to increased risk retirements and volume. Operating profit for C-5 programs was comparable to 2011. Adjustments not related to volume, including net profit booking rate adjustments and other matters described above, were approximately $30 million lower for 2012 compared to 2011. Backlog Backlog decreased in 2013 compared to 2012 mainly due to lower orders on F-16, C-5, and C-130 programs, partially offset by higher orders on the F-35 program. Backlog decreased in 2012 compared to 2011 mainly due to lower orders on F-35 and C-130 programs, partially offset by higher orders on F-16 programs. Trends We expect Aeronautics’ net sales to increase in 2014 in the mid-single digit percentage range as compared to 2013 primarily due to an increase in net sales from F-35 production contracts. Operating profit is expected to increase slightly from 2013, resulting in a slight decrease in operating margins between the years due to program mix. 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):
<table><tr><td></td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Net sales</td><td>$8,367</td><td>$8,846</td><td>$9,381</td></tr><tr><td>Operating profit</td><td>759</td><td>808</td><td>874</td></tr><tr><td>Operating margins</td><td>9.1%</td><td>9.1%</td><td>9.3%</td></tr><tr><td>Backlog at year-end</td><td>8,300</td><td>8,700</td><td>9,300</td></tr></table>
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 $255 million due to lower volume on numerous other programs (primarily Hanford; The table below provides information on the location and pretax gain or loss amounts for derivatives that are: (i) designated in a fair value hedging relationship, (ii) designated in a cash flow hedging relationship, (iii) designated in a foreign currency net investment hedging relationship and (iv) not designated in a hedging relationship
<table><tr><td><i>Years Ended December 31</i></td><td>2011</td><td>2010</td></tr><tr><td><i>Derivatives designated in fair value hedging relationships</i></td><td></td><td></td></tr><tr><td>Interest rate swap contracts</td><td></td><td></td></tr><tr><td>Amount of gain recognized in<i>Other (income) expense, net</i>on derivatives</td><td>$-196</td><td>$-23</td></tr><tr><td>Amount of loss recognized in<i>Other (income) expense, net</i>on hedged item</td><td>196</td><td>23</td></tr><tr><td><i>Derivatives designated in foreign currency cash flow hedging relationships</i></td><td></td><td></td></tr><tr><td>Foreign exchange contracts</td><td></td><td></td></tr><tr><td>Amount of loss reclassified from<i>AOCI</i>to<i>Sales</i></td><td>85</td><td>7</td></tr><tr><td>Amount of loss (gain) recognized in<i>OCI</i>on derivatives</td><td>143</td><td>-103</td></tr><tr><td><i>Derivatives designated in foreign currency net investment hedging relationships</i></td><td></td><td></td></tr><tr><td>Foreign exchange contracts</td><td></td><td></td></tr><tr><td>Amount of gain recognized in<i>Other (income) expense, net</i>onderivatives<i><sup>(1)</sup></i></td><td>-10</td><td>-1</td></tr><tr><td>Amount of loss recognized in<i>OCI</i>on deriviatives</td><td>122</td><td>24</td></tr><tr><td><i>Derivatives not designated in a hedging relationship</i></td><td></td><td></td></tr><tr><td>Foreign exchange contracts</td><td></td><td></td></tr><tr><td>Amount of gain recognized in<i>Other (income) expense, net</i>onderivatives<i><sup>(2)</sup></i></td><td>-113</td><td>-33</td></tr><tr><td>Amount of gain recognized in<i>Sales</i></td><td>—</td><td>-81</td></tr></table>
(1) There was no ineffectiveness on the hedge. Represents the amount excluded from hedge effectiveness testing. (2) These derivative contracts mitigate changes in the value of remeasured foreign currency denominated monetary assets and liabilities attributable to changes in foreign currency exchange rates. At December 31, 2011, the Company estimates $18 million of pretax net unrealized losses on derivatives maturing within the next 12 months that hedge foreign currency denominated sales over that same period will be reclassified from AOCI to Sales. The amount ultimately reclassified to Sales may differ as foreign exchange rates change. Realized gains and losses are ultimately determined by actual exchange rates at maturity. Investments in Debt and Equity Securities Information on available-for-sale investments at December 31 is as follows:
<table><tr><td></td><td colspan="4"> 2011</td><td colspan="4">2010</td></tr><tr><td></td><td></td><td></td><td colspan="2"> Gross Unrealized</td><td></td><td></td><td colspan="2">Gross Unrealized</td></tr><tr><td></td><td> Fair Value</td><td> Amortized Cost</td><td> Gains</td><td> Losses</td><td>Fair Value</td><td>Amortized Cost</td><td>Gains</td><td>Losses</td></tr><tr><td>Corporate notes and bonds</td><td>$2,032</td><td>$2,024</td><td>$16</td><td>$-8</td><td>$1,133</td><td>$1,124</td><td>$12</td><td>$-3</td></tr><tr><td>Commercial paper</td><td>1,029</td><td>1,029</td><td>—</td><td>—</td><td>1,046</td><td>1,046</td><td>—</td><td>—</td></tr><tr><td>U.S. government and agency securities</td><td>1,021</td><td>1,018</td><td>3</td><td>—</td><td>500</td><td>501</td><td>1</td><td>-2</td></tr><tr><td>Municipal securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>361</td><td>359</td><td>4</td><td>-2</td></tr><tr><td>Asset-backed securities</td><td>292</td><td>292</td><td>1</td><td>-1</td><td>171</td><td>170</td><td>1</td><td>—</td></tr><tr><td>Mortgage-backed securities</td><td>223</td><td>223</td><td>1</td><td>-1</td><td>112</td><td>108</td><td>5</td><td>-1</td></tr><tr><td>Foreign government bonds</td><td>72</td><td>72</td><td>—</td><td>—</td><td>10</td><td>10</td><td>—</td><td>—</td></tr><tr><td>Other debt securities</td><td>3</td><td>1</td><td>2</td><td>—</td><td>3</td><td>1</td><td>2</td><td>—</td></tr><tr><td>Equity securities</td><td>397</td><td>383</td><td>14</td><td>—</td><td>321</td><td>295</td><td>34</td><td>-8</td></tr><tr><td></td><td>$5,069</td><td>$5,042</td><td>$37</td><td>$-10</td><td>$3,657</td><td>$3,614</td><td>$59</td><td>$-16</td></tr></table>
Available-for-sale debt securities included in Short-term investments totaled $1.4 billion at December 31, 2011. Of the remaining debt securities, $2.9 billion mature within five years. At December 31, 2011, there were no debt securities pledged as collateral. The table below provides a summary of the changes in fair value of all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
<table><tr><td><i>Years Ended December 31</i></td><td>2011</td><td>2010</td></tr><tr><td>Beginning balance January 1</td><td>$13</td><td>$72</td></tr><tr><td>Sales</td><td>-13</td><td>-67</td></tr><tr><td>Total realized and unrealized gains (losses)Included in:</td><td></td><td></td></tr><tr><td>Earnings<i><sup>-1</sup></i></td><td>—</td><td>18</td></tr><tr><td>Comprehensive income</td><td>—</td><td>-10</td></tr><tr><td>Ending balance December 31</td><td>$—</td><td>$13</td></tr><tr><td>Losses recorded in earnings for Level 3 assets still held atDecember 31</td><td>$—</td><td>$—</td></tr></table>
(1) Amounts are recorded in Other (income) expense, net. Financial Instruments Not Measured at Fair Value Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature, such as cash and cash equivalents, receivables and payables. The estimated fair value of loans payable and long-term debt (including current portion) at December 31, 2011 was $19.5 billion compared with a carrying value of $17.5 billion and at December 31, 2010 was $18.7 billion compared with a carrying value of $17.9 billion. Fair value was estimated using quoted dealer prices. Concentrations of Credit Risk On an ongoing basis, the Company monitors concentrations of credit risk associated with corporate and government issuers of securities and financial institutions with which it conducts business. Credit exposure limits are established to limit a concentration with any single issuer or institution. Cash and investments are placed in instruments that meet high credit quality standards, as specified in the Company’s investment policy guidelines. Approximately three-quarters of the Company’s cash and cash equivalents are invested in three highly rated money market funds. The majority of the Company’s accounts receivable arise from product sales in the United States and Europe and are primarily due from drug wholesalers and retailers, hospitals, government agencies, managed health care providers and pharmacy benefit managers. The Company monitors the financial performance and creditworthiness of its customers so that it can properly assess and respond to changes in their credit profile. The Company also continues to monitor economic conditions, including the volatility associated with international sovereign economies, and associated impacts on the financial markets and its business, taking into consideration the global economic downturn and the sovereign debt issues in certain European countries. The Company continues to monitor the credit and economic conditions within Greece, Spain, Italy and Portugal, among other members of the EU. These deteriorating economic conditions, as well as inherent variability of timing of cash receipts, have resulted in, and may continue to result in, an increase in the average length of time that it takes to collect accounts receivable outstanding. As such, time value of money discounts have been recorded for those customers for which collection of accounts receivable is expected to be in excess of one year. The Company does not expect to have write-offs or adjustments to accounts receivable which would have a material adverse effect on its financial position, liquidity or results of operations. As of December 31, 2011, the Company’s accounts receivable in Greece, Italy, Spain and Portugal totaled approximately $1.6 billion. Of this amount, hospital and public sector receivables were approximately $1.1 billion in the aggregate, of which approximately 8%, 36%, 47% and 9% related to Greece, Italy, Spain and Portugal, respectively. As of December 31, 2011, the Company’s total accounts receivable outstanding for more than one year were approximately $400 million, of which approximately 90% related to accounts receivable in Greece, Italy, Spain and Portugal, mostly comprised of hospital and public sector receivables. Other Animal Health Animal Health includes pharmaceutical and vaccine products for the prevention, treatment and control of disease in all major farm and companion animal species. Animal Health sales are affected by intense competition and the frequent introduction of generic products. Global sales of Animal Health products grew 11% in 2011 to $3.3 billion from $2.9 billion in 2010. Foreign exchange favorably affected global sales performance by 3% in 2011. The increase in sales was driven by positive performance among cattle, swine, poultry and companion animal products. Global sales of Animal Health products were $494 million for the post-Merger period in 2009. Consumer Care Consumer Care products include over-the-counter, foot care and sun care products such as Claritin non-drowsy antihistamines; Dr. Scholl’s foot care products; Coppertone sun care products; and MiraLAX, a treatment for occasional constipation. Global sales of Consumer Care products increased 1% in 2011 to $1.8 billion reflecting strong performance of Coppertone, offset by declines in Dr. Scholl’s and Claritin. Consumer Care product sales were $149 million for the post-Merger period in 2009. Consumer Care product sales are affected by competition and consumer spending patterns. Alliances AstraZeneca has an option to buy Merck’s interest in a subsidiary, and through it, Merck’s interest in Nexium and Prilosec, exercisable in 2012, and the Company believes that it is likely that AstraZeneca will exercise that option (see “Selected Joint Venture and Affiliate Information” below). If AstraZeneca exercises its option, the Company will no longer record equity income from AZLP and supply sales to AZLP will decline substantially. |
2,013 | Which year is Total loans and leases the highest? | BCC enters into certain transactions with Boeing, reflected in Unallocated items, eliminations and other, in the form of intercompany guarantees and other subsidies that mitigate the effects of certain credit quality or asset impairment issues on the BCC segment. Liquidity and Capital Resources Cash Flow Summary
<table><tr><td>Years ended December 31,</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Net earnings</td><td>$5,176</td><td>$5,446</td><td>$4,585</td></tr><tr><td>Non-cash items</td><td>2,392</td><td>2,515</td><td>2,516</td></tr><tr><td>Changes in working capital</td><td>1,795</td><td>897</td><td>1,078</td></tr><tr><td>Net cash provided by operating activities</td><td>9,363</td><td>8,858</td><td>8,179</td></tr><tr><td>Net cash (used)/provided by investing activities</td><td>-1,846</td><td>2,467</td><td>-5,154</td></tr><tr><td>Net cash used by financing activities</td><td>-7,920</td><td>-8,593</td><td>-4,249</td></tr><tr><td>Effect of exchange rate changes on cash and cash equivalents</td><td>-28</td><td>-87</td><td>-29</td></tr><tr><td>Net (decrease)/increase in cash and cash equivalents</td><td>-431</td><td>2,645</td><td>-1,253</td></tr><tr><td>Cash and cash equivalents at beginning of year</td><td>11,733</td><td>9,088</td><td>10,341</td></tr><tr><td>Cash and cash equivalents at end of period</td><td>$11,302</td><td>$11,733</td><td>$9,088</td></tr></table>
Operating Activities Net cash provided by operating activities was $9.4 billion during 2015, compared with $8.9 billion during 2014 and $8.2 billion in 2013. The increase of $0.5 billion in 2015 was primarily due to lower inventory growth, partially offset by lower receipts of advances and progress billings. The increase of $0.7 billion in 2014 was primarily due to higher customer advances which more than offset higher gross inventory. Our investment in gross inventories decreased by $0.3 billion in 2015 primarily in our BDS business, largely driven by ending production of C-17 aircraft, which more than offset continued investment in commercial airplane program inventory. Our investment in gross inventories increased $7.6 billion in 2014 and $5.7 billion in 2013, largely driven by continued investment in commercial airplane program inventory, primarily 787 inventory. Advances and progress billings increased by $0.4 billion in 2015, $6.9 billion in 2014 and $3.9 billion in 2013, primarily due to payments from Commercial Airplane customers. Discretionary contributions to our pension plans were insignificant in 2015 compared with $0.8 billion in 2014 and $1.5 billion in 2013. Investing Activities Cash used by investing activities was $1.8 billion during 2015 compared with $2.5 billion provided during 2014 and $5.2 billion used during 2013, largely due to changes in investments in time deposits. Net proceeds from investments were $0.6 billion in 2015 compared with $4.8 billion in 2014 and net contributions to investments of $2.9 billion in 2013. In 2015, capital expenditures totaled $2.5 billion, up from $2.2 billion in 2014 and $2.1 billion in 2013. We expect capital expenditures in 2016 to be consistent with 2015 due to continued investment to support growth. Financing Activities Cash used by financing activities was $7.9 billion during 2015, a decrease of $0.7 billion compared with 2014 primarily due to higher new borrowings of $0.8 billion and lower repayments of debt and distribution rights of $0.9 billion in 2015, which more than offset higher share repurchases of $0.8 billion and higher dividend payments of $0.4 billion in 2015. Cash used by financing activities was $8.6 billion during 2014, an increase of $4.3 billion compared with 2013 primarily due to higher share repurchases of $3.2 billion, higher dividends paid of $0.6 billion and a decrease in proceeds from stock options exercised of $0.8 billion in 2014, partially offset by higher new borrowings of $0.4 billion in 2014. Table XII Selected Quarterly Financial Data (continued)
<table><tr><td></td><td colspan="4">2013 Quarters</td><td colspan="4">2012 Quarters</td></tr><tr><td>(Dollars in millions)</td><td>Fourth</td><td>Third</td><td>Second</td><td>First</td><td>Fourth</td><td>Third</td><td>Second</td><td>First</td></tr><tr><td>Average balance sheet</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total loans and leases</td><td>$929,777</td><td>$923,978</td><td>$914,234</td><td>$906,259</td><td>$893,166</td><td>$888,859</td><td>$899,498</td><td>$913,722</td></tr><tr><td>Total assets</td><td>2,134,875</td><td>2,123,430</td><td>2,184,610</td><td>2,212,430</td><td>2,210,365</td><td>2,173,312</td><td>2,194,563</td><td>2,187,174</td></tr><tr><td>Total deposits</td><td>1,112,674</td><td>1,090,611</td><td>1,079,956</td><td>1,075,280</td><td>1,078,076</td><td>1,049,697</td><td>1,032,888</td><td>1,030,112</td></tr><tr><td>Long-term debt</td><td>251,055</td><td>258,717</td><td>270,198</td><td>273,999</td><td>277,894</td><td>291,684</td><td>333,173</td><td>363,518</td></tr><tr><td>Common shareholders’ equity</td><td>220,088</td><td>216,766</td><td>218,790</td><td>218,225</td><td>219,744</td><td>217,273</td><td>216,782</td><td>214,150</td></tr><tr><td>Total shareholders’ equity</td><td>233,415</td><td>230,392</td><td>235,063</td><td>236,995</td><td>238,512</td><td>236,039</td><td>235,558</td><td>232,566</td></tr><tr><td>Asset quality<sup>-4</sup></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Allowance for credit losses<sup>-5</sup></td><td>$17,912</td><td>$19,912</td><td>$21,709</td><td>$22,927</td><td>$24,692</td><td>$26,751</td><td>$30,862</td><td>$32,862</td></tr><tr><td>Nonperforming loans, leases and foreclosed properties<sup>-6</sup></td><td>17,772</td><td>20,028</td><td>21,280</td><td>22,842</td><td>23,555</td><td>24,925</td><td>25,377</td><td>27,790</td></tr><tr><td>Allowance for loan and lease losses as a percentage of total loans and leases outstanding<sup>-6</sup></td><td>1.90%</td><td>2.10%</td><td>2.33%</td><td>2.49%</td><td>2.69%</td><td>2.96%</td><td>3.43%</td><td>3.61%</td></tr><tr><td>Allowance for loan and lease losses as a percentage of total nonperforming loans and leases<sup>-6</sup></td><td>102</td><td>100</td><td>103</td><td>102</td><td>107</td><td>111</td><td>127</td><td>126</td></tr><tr><td>Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio<sup>-6</sup></td><td>87</td><td>84</td><td>84</td><td>82</td><td>82</td><td>81</td><td>90</td><td>91</td></tr><tr><td>Amounts included in allowance that are excluded from nonperforming loans and leases<sup>-7</sup></td><td>$7,680</td><td>$8,972</td><td>$9,919</td><td>$10,690</td><td>$12,021</td><td>$13,978</td><td>$16,327</td><td>$17,006</td></tr><tr><td>Allowance as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance that are excluded from nonperforming loans and leases<sup>-7</sup></td><td>57%</td><td>54%</td><td>55%</td><td>53%</td><td>54%</td><td>52%</td><td>59%</td><td>60%</td></tr><tr><td>Net charge-offs<sup>-8</sup></td><td>$1,582</td><td>$1,687</td><td>$2,111</td><td>$2,517</td><td>$3,104</td><td>$4,122</td><td>$3,626</td><td>$4,056</td></tr><tr><td>Annualized net charge-offs as a percentage of average loans and leases outstanding<sup>-6, 8</sup></td><td>0.68%</td><td>0.73%</td><td>0.94%</td><td>1.14%</td><td>1.40%</td><td>1.86%</td><td>1.64%</td><td>1.80%</td></tr><tr><td>Annualized net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio<sup>-6</sup></td><td>0.70</td><td>0.75</td><td>0.97</td><td>1.18</td><td>1.44</td><td>1.93</td><td>1.69</td><td>1.87</td></tr><tr><td>Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding<sup>-6, 9</sup></td><td>1.00</td><td>0.92</td><td>1.07</td><td>1.52</td><td>1.90</td><td>2.63</td><td>1.64</td><td>1.80</td></tr><tr><td>Nonperforming loans and leases as a percentage of total loans and leases outstanding<sup>-6</sup></td><td>1.87</td><td>2.10</td><td>2.26</td><td>2.44</td><td>2.52</td><td>2.68</td><td>2.70</td><td>2.85</td></tr><tr><td>Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties<sup>-6</sup></td><td>1.93</td><td>2.17</td><td>2.33</td><td>2.53</td><td>2.62</td><td>2.81</td><td>2.87</td><td>3.10</td></tr><tr><td>Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs<sup>-8</sup></td><td>2.78</td><td>2.90</td><td>2.51</td><td>2.20</td><td>1.96</td><td>1.60</td><td>2.08</td><td>1.97</td></tr><tr><td>Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs, excluding the PCI loan portfolio</td><td>2.38</td><td>2.42</td><td>2.04</td><td>1.76</td><td>1.51</td><td>1.17</td><td>1.46</td><td>1.43</td></tr><tr><td>Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs and PCI write-offs<sup>-9</sup></td><td>1.89</td><td>2.30</td><td>2.18</td><td>1.65</td><td>1.44</td><td>1.13</td><td>2.08</td><td>1.97</td></tr><tr><td>Capital ratios at period end<sup>-10</sup></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Risk-based capital:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Tier 1 common capital</td><td>11.19%</td><td>11.08%</td><td>10.83%</td><td>10.49%</td><td>11.06%</td><td>11.41%</td><td>11.24%</td><td>10.78%</td></tr><tr><td>Tier 1 capital</td><td>12.44</td><td>12.33</td><td>12.16</td><td>12.22</td><td>12.89</td><td>13.64</td><td>13.80</td><td>13.37</td></tr><tr><td>Total capital</td><td>15.44</td><td>15.36</td><td>15.27</td><td>15.50</td><td>16.31</td><td>17.16</td><td>17.51</td><td>17.49</td></tr><tr><td>Tier 1 leverage</td><td>7.86</td><td>7.79</td><td>7.49</td><td>7.49</td><td>7.37</td><td>7.84</td><td>7.84</td><td>7.79</td></tr><tr><td>Tangible equity<sup>-3</sup></td><td>7.86</td><td>7.73</td><td>7.67</td><td>7.78</td><td>7.62</td><td>7.85</td><td>7.73</td><td>7.48</td></tr><tr><td>Tangible common equity<sup>-3</sup></td><td>7.20</td><td>7.08</td><td>6.98</td><td>6.88</td><td>6.74</td><td>6.95</td><td>6.83</td><td>6.58</td></tr></table>
For footnotes see page 134 ITEM 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. The information required by Item 12 is included under the heading “Security Ownership of Management and Certain Beneficial Owners” in the 2017 Proxy Statement, and that information is incorporated by reference in this Form 10-K. Equity Compensation Plan Information The following table provides information about our equity compensation plans that authorize the issuance of shares of Lockheed Martin common stock to employees and directors. The information is provided as of December 31, 2016.
<table><tr><td>Plan category</td><td>Number of securities to beissued upon exercise of outstanding options, warrants and rights (a)</td><td>Weighted-average exercise price of outstanding options, warrants and rights (b)</td><td>Number of securities remaining availablefor future issuance under equity compensation plans (excluding securities reflected in column (a)) (c)</td></tr><tr><td>Equity compensation plans approved by securityholders<sup>-1</sup></td><td>5,802,673</td><td>$85.82</td><td>6,216,471</td></tr><tr><td>Equity compensation plans not approved bysecurity holders<sup>-2</sup></td><td>1,082,347</td><td>—</td><td>2,481,032</td></tr><tr><td>Total</td><td>6,885,020</td><td>$85.82</td><td>8,697,503</td></tr></table>
(1) Column (a) includes, as of December 31, 2016: 1,747,151 shares that have been granted as Restricted Stock Units (RSUs), 936,308 shares that could be earned pursuant to grants of Performance Stock Units (PSUs) (assuming the maximum number of PSUs are earned and payable at the end of the three-year performance period) and 2,967,046 shares granted as options under the Lockheed Martin Corporation 2011 Incentive Performance Award Plan (2011 IPA Plan) or predecessor plans prior to January 1, 2013 and 23,346 shares granted as options and 128,822 stock units payable in stock or cash under the Lockheed Martin Corporation 2009 Directors Equity Plan (Directors Equity Plan) or predecessor plans for members (or former members) of the Board of Directors. Column (c) includes, as of December 31, 2016, 5,751,655 shares available for future issuance under the 2011 IPA Plan as options, stock appreciation rights (SARs), restricted stock awards (RSAs), RSUs or PSUs and 464,816 shares available for future issuance under the Directors Equity Plan as stock options and stock units. Of the 5,751,655 shares available for grant under the 2011 IPA Plan on December 31, 2016, 516,653 and 236,654 shares are issuable pursuant to grants made on January 26, 2017, of RSUs and PSUs (assuming the maximum number of PSUs are earned and payable at the end of the three-year performance period), respectively. The weighted average price does not take into account shares issued pursuant to RSUs or PSUs. (2) The shares represent annual incentive bonuses and Long-Term Incentive Performance (LTIP) payments earned and voluntarily deferred by employees. The deferred amounts are payable under the Deferred Management Incentive Compensation Plan (DMICP). Deferred amounts are credited as phantom stock units at the closing price of our stock on the date the deferral is effective. Amounts equal to our dividend are credited as stock units at the time we pay a dividend. Following termination of employment, a number of shares of stock equal to the number of stock units credited to the employee’s DMICP account are distributed to the employee. There is no discount or value transfer on the stock distributed. Distributions may be made from newly issued shares or shares purchased on the open market. Historically, all distributions have come from shares held in a separate trust and, therefore, do not further dilute our common shares outstanding. As a result, these shares also were not considered in calculating the total weighted average exercise price in the table. Because the DMICP shares are outstanding, they should be included in the denominator (and not the numerator) of a dilution calculation. ITEM 13. Certain Relationships and Related Transactions and Director Independence. The information required by this Item 13 is included under the captions “Corporate Governance – Related Person Transaction Policy,” “Corporate Governance – Certain Relationships and Related Person Transactions of Directors, Executive Officers, and 5 Percent Stockholders,” and “Corporate Governance – Director Independence” in the 2017 Proxy Statement, and that information is incorporated by reference in this Form 10-K. ITEM 14. Principal Accountant Fees and Services. The information required by this Item 14 is included under the caption “Proposal 2 – Ratification of Appointment of Independent Auditors” in the 2017 Proxy Statement, and that information is incorporated by reference in this Form 10-K. Total debt at December 31 consisted of the following (in thousands):
<table><tr><td></td><td>2017</td><td>2016</td></tr><tr><td>2016 Facility</td><td>$1,270,000</td><td>$1,930,000</td></tr><tr><td>$400 million 1.850% senior notes due 2017</td><td>—</td><td>400,000</td></tr><tr><td>$800 million 2.050% senior notes due 2018</td><td>800,000</td><td>800,000</td></tr><tr><td>$500 million 6.250% senior notes due 2019</td><td>500,000</td><td>500,000</td></tr><tr><td>$600 million 3.000% senior notes due 2020</td><td>600,000</td><td>600,000</td></tr><tr><td>$500 million 2.800% senior notes due 2021</td><td>500,000</td><td>500,000</td></tr><tr><td>$500 million 3.125% senior notes due 2022</td><td>500,000</td><td>500,000</td></tr><tr><td>$300 million 3.850% senior notes due 2025</td><td>300,000</td><td>300,000</td></tr><tr><td>$700 million 3.800% senior notes due 2026</td><td>700,000</td><td>700,000</td></tr><tr><td>Other</td><td>3,149</td><td>2,989</td></tr><tr><td>Less unamortized debt issuance costs</td><td>-17,594</td><td>-23,453</td></tr><tr><td>Total debt</td><td>5,155,555</td><td>6,209,536</td></tr><tr><td>Less current portion, net of issuance costs</td><td>800,944</td><td>400,975</td></tr><tr><td>Long-term debt</td><td>$4,354,611</td><td>$5,808,561</td></tr></table>
The 2016 Facility and Roper’s $3.9 billion senior notes provide substantially all of Roper’s daily external financing requirements. The interest rate on the borrowings under the 2016 Facility is calculated based upon various recognized indices plus a margin as defined in the credit agreement. At December 31, 2017, Roper’s fixed debt consisted of $3.9 billion of senior notes, $3.1 million of other debt in the form of capital leases, several smaller facilities that allow for borrowings or the issuance of letters of credit in foreign locations to support Roper’s non-U. S. businesses and $75.9 million of outstanding letters of credit at December 31, 2017. Future maturities of total debt during each of the next five years ending December 31 and thereafter were as follows
<table><tr><td>2018</td><td>$801,503</td></tr><tr><td>2019</td><td>501,061</td></tr><tr><td>2020</td><td>600,529</td></tr><tr><td>2021</td><td>1,770,047</td></tr><tr><td>2022</td><td>500,009</td></tr><tr><td>Thereafter</td><td>1,000,000</td></tr><tr><td>Total</td><td>$5,173,149</td></tr></table>
(9) FAIR VALUE Roper’s debt at December 31, 2017 included $3.9 billion of fixed-rate senior notes with the following fair values (in millions): |
2,657,176 | What's the total amount of active, iSharesETFs and Non-ETF index in 2016 in equity (in million) | used to refinance certain indebtedness which matured in the fourth quarter of 2014. Interest is payable semi-annually in arrears on March 18 and September 18 of each year, or approximately $35 million per year. The 2024 Notes may be redeemed prior to maturity at any time in whole or in part at the option of the Company at a “make-whole” redemption price. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2024 Notes.2022 Notes. In May 2012, the Company issued $1.5 billion in aggregate principal amount of unsecured unsubordinated obligations. These notes were issued as two separate series of senior debt securities, including $750 million of 1.375% notes, which were repaid in June 2015 at maturity, and $750 million of 3.375% notes maturing in June 2022 (the “2022 Notes”). Net proceeds were used to fund the repurchase of BlackRock’s common stock and Series B Preferred from Barclays and affiliates and for general corporate purposes. Interest on the 2022 Notes of approximately $25 million per year is payable semi-annually on June 1 and December 1 of each year. The 2022 Notes may be redeemed prior to maturity at any time in whole or in part at the option of the Company at a “make-whole” redemption price. The “make-whole” redemption price represents a price, subject to the specific terms of the 2022 Notes and related indenture, that is the greater of (a) par value and (b) the present value of future payments that will not be paid because of an early redemption, which is discounted at a fixed spread over a comparable Treasury security. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2022 Notes.2021 Notes. In May 2011, the Company issued $1.5 billion in aggregate principal amount of unsecured unsubordinated obligations. These notes were issued as two separate series of senior debt securities, including $750 million of 4.25% notes maturing in May 2021 and $750 million of floating rate notes, which were repaid in May 2013 at maturity. Net proceeds of this offering were used to fund the repurchase of BlackRock’s Series B Preferred from affiliates of Merrill Lynch & Co. , Inc. Interest on the 4.25% notes due in 2021 (“2021 Notes”) is payable semi-annually on May 24 and November 24 of each year, and is approximately $32 million per year. The 2021 Notes may be redeemed prior to maturity at any time in whole or in part at the option of the Company at a “make-whole” redemption price. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2021 Notes.2019 Notes. In December 2009, the Company issued $2.5 billion in aggregate principal amount of unsecured and unsubordinated obligations. These notes were issued as three separate series of senior debt securities including $0.5 billion of 2.25% notes, which were repaid in December 2012, $1.0 billion of 3.50% notes, which were repaid in December 2014 at maturity, and $1.0 billion of 5.0% notes maturing in December 2019 (the “2019 Notes”). Net proceeds of this offering were used to repay borrowings under the CP Program, which was used to finance a portion of the acquisition of Barclays Global Investors from Barclays on December 1, 2009, and for general corporate purposes. Interest on the 2019 Notes of approximately $50 million per year is payable semi-annually in arrears on June 10 and December 10 of each year. These notes may be redeemed prior to maturity at any time in whole or in part at the option of the Company at a “make-whole” redemption price. The unamortized discount and debt issuance costs are being amortized over the remaining term of the 2019 Notes.13. Commitments and Contingencies Operating Lease Commitments The Company leases its primary office spaces under agreements that expire through 2043. Future minimum commitments under these operating leases are as follows:
<table><tr><td>Year</td><td>Amount</td></tr><tr><td>2018</td><td>141</td></tr><tr><td>2019</td><td>132</td></tr><tr><td>2020</td><td>126</td></tr><tr><td>2021</td><td>118</td></tr><tr><td>2022</td><td>109</td></tr><tr><td>Thereafter</td><td>1,580</td></tr><tr><td>Total</td><td>$2,206</td></tr></table>
In May 2017, the Company entered into an agreement with 50 HYMC Owner LLC, for the lease of approximately 847,000 square feet of office space located at 50 Hudson Yards, New York, New York. The term of the lease is twenty years from the date that rental payments begin, expected to occur in May 2023, with the option to renew for a specified term. The lease requires annual base rental payments of approximately $51 million per year during the first five years of the lease term, increasing every five years to $58 million, $66 million and $74 million per year (or approximately $1.2 billion in base rent over its twenty-year term). This lease is classified as an operating lease and, as such, is not recorded as a liability on the consolidated statements of financial condition. Rent expense and certain office equipment expense under lease agreements amounted to $132 million, $134 million and $136 million in 2017, 2016 and 2015, respectively. Investment Commitments. At December 31, 2017, the Company had $298 million of various capital commitments to fund sponsored investment funds, including consolidated VIEs. These funds include private equity funds, real assets funds, and opportunistic funds. This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds. Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment. These unfunded commitments are not recorded on the consolidated statements of financial condition. These commitments do not include potential future commitments approved by the Company that are not yet legally binding. The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients. Contingencies Contingent Payments Related to Business Acquisitions. In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to achieving specified performance targets, which may include revenue related to acquired contracts or new capital commitments for certain products. The fair value of the remaining aggregate contingent payments at December 31, 2017 totaled $236 million, including $128 million related to the First Reserve Transaction, and is included in other liabilities on the consolidated statements of financial condition. Institutional active AUM ended 2017 at $1.1 trillion, reflecting $5.9 billion of net inflows. Institutional active represented 19% of long-term AUM and 18% of long-term base fees. Growth in AUM reflected continued strength in multi-asset products with net inflows of $19.6 billion reflecting ongoing demand for solutions offerings and the LifePath? target-date suite. Alternatives net inflows of $0.6 billion were led by inflows into infrastructure, hedge fund solutions and alternatives solutions offerings. Excluding return of capital and investment of $6.0 billion, alternatives net inflows were $6.6 billion. In addition, 2017 was another strong fundraising year for illiquid alternatives, and we raised approximately $11 billion in new commitments, which will be a source of future net inflows. Equity and fixed income net outflows were $13.6 billion and $0.7 billion, respectively. Institutional index AUM totaled $2.3 trillion at December 31, 2017, reflecting net inflows of $49.1 billion. Fixed income net inflows of $87.5 billion were driven by demand for liabilitydriven investment solutions, particularly in Europe. Equity net outflows of $34.8 billion were primarily due to low-fee regional index equity outflows as clients looked to re-allocate, re-balance or meet their cash needs. Alternatives net outflows of $2.9 billion reflected outflows from passive currency overlays. Institutional index represented 40% of long-term AUM at December 31, 2017 and accounted for 10% of long-term base fees for 2017. The Company’s institutional clients consist of the following: ? Pensions, Foundations and Endowments. BlackRock is among the world’s largest managers of pension plan assets with $2.403 trillion, or 69%, of long-term institutional AUM managed for defined benefit, defined contribution and other pension plans for corporations, governments and unions at December 31, 2017. The market landscape continues to shift from defined benefit to defined contribution, driving strong flows in our defined contribution channel, which had $46.5 billion of long-term net inflows for the year, driven by continued demand for our LifePath target-date suite. Defined contribution represented $887.1 billion of total pension AUM, and we remain well positioned to capitalize on the on-going evolution of the defined contribution market and demand for outcome-oriented investments. An additional $76.4 billion, or 2%, of longterm institutional AUM was managed for other tax-exempt investors, including charities, foundations and endowments. ? Official Institutions. BlackRock managed $195.3 billion, or 6%, of long-term institutional AUM for official institutions, including central banks, sovereign wealth funds, supranationals, multilateral entities and government ministries and agencies at year-end 2017. These clients often require specialized investment advice, the use of customized benchmarks and training support. ? Financial and Other Institutions. BlackRock is a top independent manager of assets for insurance companies, which accounted for $274.3 billion, or 8%, of institutional long-term AUM at year-end 2017. Assets managed for other taxable institutions, including corporations, banks and third-party fund sponsors for which we provide sub-advisory services, totaled $506.9 billion, or 15%, of long-term institutional AUM at year-end. PRODUCT TYPE AND INVESTMENT STYLE Component changes in AUM by product type and investment style for 2017 are presented below.
<table><tr><td>(in millions)</td><td>December 31,2016</td><td>Net inflows (outflows)</td><td>Acquisition<sup>-1</sup></td><td>Market change</td><td>FXimpact</td><td>December 31,2017</td></tr><tr><td>Equity:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Active</td><td>$275,033</td><td>$-18,506</td><td>$—</td><td>$46,134</td><td>$8,548</td><td>$311,209</td></tr><tr><td>iSharesETFs</td><td>951,252</td><td>174,377</td><td>—</td><td>189,472</td><td>14,509</td><td>1,329,610</td></tr><tr><td>Non-ETF index</td><td>1,430,891</td><td>-25,725</td><td>—</td><td>289,829</td><td>35,827</td><td>1,730,822</td></tr><tr><td>Equity subtotal</td><td>2,657,176</td><td>130,146</td><td>—</td><td>525,435</td><td>58,884</td><td>3,371,641</td></tr><tr><td>Fixed income:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Active</td><td>749,996</td><td>21,541</td><td>—</td><td>28,800</td><td>14,798</td><td>815,135</td></tr><tr><td>iSharesETFs</td><td>314,707</td><td>67,451</td><td>—</td><td>4,497</td><td>8,597</td><td>395,252</td></tr><tr><td>Non-ETF index</td><td>507,662</td><td>89,795</td><td>—</td><td>14,324</td><td>33,297</td><td>645,078</td></tr><tr><td>Fixed income subtotal</td><td>1,572,365</td><td>178,787</td><td>—</td><td>47,621</td><td>56,692</td><td>1,855,465</td></tr><tr><td>Multi-asset</td><td>395,007</td><td>20,330</td><td>—</td><td>49,560</td><td>15,381</td><td>480,278</td></tr><tr><td>Alternatives:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Core</td><td>88,630</td><td>780</td><td>3,264</td><td>3,438</td><td>2,421</td><td>98,533</td></tr><tr><td>Currency and commodities</td><td>28,308</td><td>197</td><td>—</td><td>1,813</td><td>496</td><td>30,814</td></tr><tr><td>Alternatives subtotal</td><td>116,938</td><td>977</td><td>3,264</td><td>5,251</td><td>2,917</td><td>129,347</td></tr><tr><td>Long-term</td><td>4,741,486</td><td>330,240</td><td>3,264</td><td>627,867</td><td>133,874</td><td>5,836,731</td></tr><tr><td>Cash management</td><td>403,584</td><td>38,259</td><td>—</td><td>1,239</td><td>6,867</td><td>449,949</td></tr><tr><td>Advisory</td><td>2,782</td><td>-1,245</td><td>—</td><td>-205</td><td>183</td><td>1,515</td></tr><tr><td>Total</td><td>$5,147,852</td><td>$367,254</td><td>$3,264</td><td>$628,901</td><td>$140,924</td><td>$6,288,195</td></tr></table>
(1) Amount represents AUM acquired in the First Reserve Transaction. occurs, at which time they are recorded as adjustments to interest expense over the term of the related notes. At December 31, 2005, AOCI included a deferred loss of $4.1 million, net of tax, related to an interest rate swap. This amount is being reclassified into earnings as adjustments to interest expense over the term of the Company’s 51?4% senior notes due 2014. At December 31, 2004, the amount of deferred loss included in AOCI was $4.6 million, net of tax. The amounts amortized to interest expense were $0.8 million and $0.5 million for the years ending December 31, 2005 and 2004, respectively. Note 13 – Equity Method Investments Noble Energy owns a 45% interest in Atlantic Methanol Production Company, LLC (‘‘AMPCO’’), which owns and operates a methanol production facility and related facilities in Equatorial Guinea and a 28% interest in Alba Plant, LLC (‘‘Alba Plant’’), which owns and operates a liquefied petroleum gas (‘‘LPG’’) processing plant. Construction of the Alba Plant was funded primarily through advances by the Company and other owners in exchange for notes payable by the Alba Plant. The notes mature on December 31, 2011 and bear interest at the 90-day LIBOR rate plus 3%. Noble Energy owns 50% interests in AMPCO Marketing, LLC and AMPCO Services, LLC, which provide technical and consulting services. These investments, which are accounted for using the equity method, are included in equity method investments on the Company’s balance sheets, and the Company’s share of earnings is reported as income from equity method investments on the Company’s statements of operations. Summarized, 100% combined financial information for equity method investees was as follows: Balance Sheet Information
<table><tr><td> </td><td colspan="2"> December 31, </td></tr><tr><td> </td><td> 2005 </td><td> 2004 </td></tr><tr><td> </td><td colspan="2"> (in thousands) </td></tr><tr><td>Current assets</td><td>$274,484</td><td>$174,864</td></tr><tr><td>Noncurrent assets</td><td>877,402</td><td>826,499</td></tr><tr><td>Current liabilities</td><td>119,912</td><td>118,784</td></tr><tr><td>Noncurrent liabilities</td><td>450,156</td><td>381,509</td></tr></table>
Statements of Operations Information |
0.04463 | what is the percent change between net revenue in 2006 and 2007? | Entergy Mississippi, Inc. Management's Financial Discussion and Analysis 321 The net wholesale revenue variance is primarily due to lower profit on joint account sales and reduced capacity revenue from the Municipal Energy Agency of Mississippi. Gross operating revenues, fuel and purchased power expenses, and other regulatory charges Gross operating revenues increased primarily due to an increase of $152.5 million in fuel cost recovery revenues due to higher fuel rates, partially offset by a decrease of $43 million in gross wholesale revenues due to a decrease in net generation and purchases in excess of decreased net area demand resulting in less energy available for resale sales coupled with a decrease in system agreement remedy receipts. Fuel and purchased power expenses increased primarily due to increases in the average market prices of natural gas and purchased power, partially offset by decreased demand and decreased recovery from customers of deferred fuel costs. Other regulatory charges increased primarily due to increased recovery through the Grand Gulf rider of Grand Gulf capacity costs due to higher rates and increased recovery of costs associated with the power management recovery rider. There is no material effect on net income due to quarterly adjustments to the power management recovery rider.2007 Compared to 2006 Net revenue consists of operating revenues net of: 1) fuel, fuel-related expenses, and gas purchased for resale, 2) purchased power expenses, and 3) other regulatory charges (credits). Following is an analysis of the change in net revenue comparing 2007 to 2006.
<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2006 net revenue</td><td>$466.1</td></tr><tr><td>Base revenue</td><td>7.9</td></tr><tr><td>Volume/weather</td><td>4.5</td></tr><tr><td>Transmission revenue</td><td>4.1</td></tr><tr><td>Transmission equalization</td><td>4.0</td></tr><tr><td>Reserve equalization</td><td>3.8</td></tr><tr><td>Attala costs</td><td>-10.2</td></tr><tr><td>Other</td><td>6.7</td></tr><tr><td>2007 net revenue</td><td>$486.9</td></tr></table>
The base revenue variance is primarily due to a formula rate plan increase effective July 2007. The formula rate plan filing is discussed further in "State and Local Rate Regulation" below. The volume/weather variance is primarily due to increased electricity usage primarily in the residential and commercial sectors, including the effect of more favorable weather on billed electric sales in 2007 compared to 2006. Billed electricity usage increased 214 GWh. The increase in usage was partially offset by decreased usage in the industrial sector. The transmission revenue variance is due to higher rates and the addition of new transmission customers in late 2006. The transmission equalization variance is primarily due to a revision made in 2006 of transmission equalization receipts among Entergy companies. The reserve equalization variance is primarily due to a revision in 2006 of reserve equalization payments among Entergy companies due to a FERC ruling regarding the inclusion of interruptible loads in reserve Revenues and Expenses Premiums, Fees and Other Revenues Premiums, fees and other revenues increased by $2,185 million, or 7%, to $34,739 million for the year ended December 31, 2007 from $32,554 million for the comparable 2006 period. The following table provides the change from the prior year in premiums, fees and other revenues by segment:
<table><tr><td></td><td></td><td> % of Total </td></tr><tr><td></td><td> $ Change (In millions)</td><td> $ Change</td></tr><tr><td>Institutional</td><td>$594</td><td>27%</td></tr><tr><td>Reinsurance</td><td>573</td><td>26</td></tr><tr><td>International</td><td>560</td><td>26</td></tr><tr><td>Individual</td><td>364</td><td>17</td></tr><tr><td>Auto & Home</td><td>65</td><td>3</td></tr><tr><td>Corporate & Other</td><td>29</td><td>1</td></tr><tr><td>Total change</td><td>$2,185</td><td>100%</td></tr></table>
The growth in the Institutional segment was primarily due to increases in the non-medical health & other and group life businesses. The non-medical health & other business increased primarily due to growth in the dental, disability, accidental death & dismemberment (“AD&D”) and individual disability insurance (“IDI”) businesses. Partially offsetting these increases is a decrease in the long-term care (“LTC”) business, net of a decrease resulting from a shift to deposit liability-type contracts in the current year, partially offset by growth in the business. The group life business increased primarily due to business growth in term life and increases in corporate-owned life insurance and life insurance sold to postretirement benefit plans. These increases in the non-medical health & other and group life businesses were partially offset by a decrease in the retirement & savings business. The decrease in retirement & savings was primarily due to a decrease in structured settlement and pension closeout premiums, partially offset by an increase in other products. The growth in the Reinsurance segment was primarily attributable to premiums from new facultative and automatic treaties and renewal premiums on existing blocks of business in all RGA’s operating segments. In addition, other revenues increased due to an increase in surrender charges on asset-intensive business reinsured and an increase in fees associated with financial reinsurance. The growth in the International segment was primarily due to the following factors: ? An increase in Mexico’s premiums, fees and other revenues due to higher fees and growth in its institutional and universal life businesses, a decrease in experience refunds during the first quarter of 2007 on Mexico’s institutional business, as well as the adverse impact in the prior year of an adjustment for experience refunds on Mexico’s institutional business, offset by lower fees resulting from management’s update of assumptions used to determine estimated gross profits and various one-time revenue items which benefited both the current and prior years. ? Premiums, fees and other revenues increased in Hong Kong primarily due to the acquisition of the remaining 50% interest in MetLife Fubon and the resulting consolidation of the operation as well as business growth. ? Chile’s premiums, fees and other revenues increased primarily due to higher annuity sales, higher institutional premiums from its traditional and bank distribution channels, and the decrease in the prior year resulting from management’s decision not to match aggressive pricing in the marketplace. ? South Korea’s premiums, fees and other revenues increased primarily due to higher fees from growth in its guaranteed annuity and variable universal life businesses. ? Brazil’s premiums, fees and other revenues increased due to changes in foreign currency exchange rates and business growth. ? Premiums, fees and other revenues increased in Japan due to an increase in reinsurance assumed. ? Australia’s premiums, fees and other revenues increased primarily due to growth in the institutional and reinsurance business inforce, an increase in retention levels and changes in foreign currency exchange rates. ? Argentina’s premiums, fees and other revenues increased due to higher pension contributions resulting from higher participant salaries and a higher salary threshold subject to fees and growth in bancassurance, offset by the reduction of cost of insurance fees as a result of the new pension system reform regulation. ? Taiwan’s and India’s premiums, fees and other revenues increased primarily due to business growth. These increases in premiums, fees and other revenues were partially offset by a decrease in the United Kingdom due to an unearned premium calculation refinement, partially offset by changes in foreign currency exchange rates. The growth in the Individual segment was primarily due to higher fee income from variable life and annuity and investment-type products and growth in premiums from other life products, partially offset by a decrease in immediate annuity premiums and a decline in premiums associated with the Company’s closed block business, in line with expectations. The growth in the Auto & Home segment was primarily due to an increase in premiums related to increased exposures, an increase in various voluntary and involuntary programs, and a change in estimate on auto rate refunds due to a regulatory examination, as well as an increase in other revenues primarily due to slower than anticipated claim payments in 2006. These increases were partially offset by a reduction in average earned premium per policy, and an increase in catastrophe reinsurance costs. The increase in Corporate & Other was primarily related to the resolution of an indemnification claim associated with the 2000 acquisition of General American Life Insurance Company (“GALIC”), partially offset by an adjustment of surrender values on corporateowned life insurance policies. Net Investment Income Net investment income increased by $1,924 million, or 11%, to $19,006 million for the year ended December 31, 2007 from $17,082 million for the comparable 2006 period. Management attributes $1,336 million of this increase to growth in the average asset base and $588 million to an increase in yields. The increase in net investment income from growth in the average asset base was primarily within fixed maturity securities, mortgage loans, real estate joint ventures and other limited partnership interests. The increase in net
<table><tr><td></td><td colspan="5">December 31,</td></tr><tr><td></td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td></td><td colspan="5">(In millions)</td></tr><tr><td> Balance Sheet Data -1</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>General account assets</td><td>$398,403</td><td>$383,350</td><td>$353,776</td><td>$270,039</td><td>$251,085</td></tr><tr><td>Separate account assets</td><td>160,159</td><td>144,365</td><td>127,869</td><td>86,769</td><td>75,756</td></tr><tr><td>Total assets -2</td><td>$558,562</td><td>$527,715</td><td>$481,645</td><td>$356,808</td><td>$326,841</td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Life and health policyholder liabilities -4</td><td>$278,246</td><td>$267,146</td><td>$257,258</td><td>$193,612</td><td>$177,947</td></tr><tr><td>Property and casualty policyholder liabilities -4</td><td>3,324</td><td>3,453</td><td>3,490</td><td>3,180</td><td>2,943</td></tr><tr><td>Short-term debt</td><td>667</td><td>1,449</td><td>1,414</td><td>1,445</td><td>3,642</td></tr><tr><td>Long-term debt</td><td>9,628</td><td>9,129</td><td>9,489</td><td>7,412</td><td>5,703</td></tr><tr><td>Collateral financing arrangements</td><td>5,732</td><td>850</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Junior subordinated debt securities</td><td>4,474</td><td>3,780</td><td>2,533</td><td>—</td><td>—</td></tr><tr><td>Payables for collateral under securities loaned and other transactions</td><td>44,136</td><td>45,846</td><td>34,515</td><td>28,678</td><td>27,083</td></tr><tr><td>Other</td><td>17,017</td><td>17,899</td><td>15,976</td><td>12,888</td><td>12,618</td></tr><tr><td>Separate account liabilities</td><td>160,159</td><td>144,365</td><td>127,869</td><td>86,769</td><td>75,756</td></tr><tr><td>Total liabilities -2</td><td>523,383</td><td>493,917</td><td>452,544</td><td>333,984</td><td>305,692</td></tr><tr><td>Stockholders’ Equity</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Preferred stock, at par value</td><td>1</td><td>1</td><td>1</td><td>—</td><td>—</td></tr><tr><td>Common stock, at par value</td><td>8</td><td>8</td><td>8</td><td>8</td><td>8</td></tr><tr><td>Additional paid-in capital</td><td>17,098</td><td>17,454</td><td>17,274</td><td>15,037</td><td>14,991</td></tr><tr><td>Retained earnings -5</td><td>19,884</td><td>16,574</td><td>10,865</td><td>6,608</td><td>4,193</td></tr><tr><td>Treasury stock, at cost</td><td>-2,890</td><td>-1,357</td><td>-959</td><td>-1,785</td><td>-835</td></tr><tr><td>Accumulated other comprehensive income -6</td><td>1,078</td><td>1,118</td><td>1,912</td><td>2,956</td><td>2,792</td></tr><tr><td>Total stockholders’ equity</td><td>35,179</td><td>33,798</td><td>29,101</td><td>22,824</td><td>21,149</td></tr><tr><td>Total liabilities and stockholders’ equity</td><td>$558,562</td><td>$527,715</td><td>$481,645</td><td>$356,808</td><td>$326,841</td></tr></table>
<table><tr><td></td><td colspan="5"> Years Ended December 31,</td></tr><tr><td></td><td> 2007</td><td> 2006</td><td> 2005</td><td> 2004</td><td> 2003</td></tr><tr><td> Other Data -1</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net income available to common shareholders</td><td>$4,180</td><td>$6,159</td><td>$4,651</td><td>$2,758</td><td>$2,196</td></tr><tr><td>Return on common equity -7</td><td>13.0%</td><td>21.9%</td><td>18.5%</td><td>12.5%</td><td>11.4%</td></tr><tr><td>Return on common equity, excluding accumulated other comprehensive income</td><td>13.2%</td><td>22.6%</td><td>20.4%</td><td>14.4%</td><td>13.0%</td></tr><tr><td> EPS Data -1</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> Income from Continuing Operations Available to Common Shareholders Per Common Share</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$5.57</td><td>$3.85</td><td>$4.02</td><td>$3.43</td><td>$2.36</td></tr><tr><td>Diluted</td><td>$5.44</td><td>$3.81</td><td>$3.98</td><td>$3.41</td><td>$2.34</td></tr><tr><td> Income (loss) from Discontinued Operations Per Common Share</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$0.05</td><td>$4.24</td><td>$2.19</td><td>$0.35</td><td>$0.65</td></tr><tr><td>Diluted</td><td>$0.04</td><td>$4.18</td><td>$2.18</td><td>$0.35</td><td>$0.64</td></tr><tr><td> Cumulative Effect of a Change in Accounting Per Common Share -3</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$—</td><td>$—</td><td>$—</td><td>$-0.11</td><td>$-0.04</td></tr><tr><td>Diluted</td><td>$—</td><td>$—</td><td>$—</td><td>$-0.11</td><td>$-0.04</td></tr><tr><td> Net Income Available to Common Shareholders Per Common Share</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>$5.62</td><td>$8.09</td><td>$6.21</td><td>$3.67</td><td>$2.97</td></tr><tr><td>Diluted</td><td>$5.48</td><td>$7.99</td><td>$6.16</td><td>$3.65</td><td>$2.94</td></tr><tr><td> Dividends Declared Per Common Share</td><td>$0.74</td><td>$0.59</td><td>$0.52</td><td>$0.46</td><td>$0.23</td></tr></table>
Years Ended December 31, @t@ (1) On July 1, 2005, the Company acquired Travelers. The 2005 selected financial data includes total revenues and total expenses of $966 million and $577 million, respectively, from the date of the acquisition. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Acquisitions and Dispositions. ” (2) Discontinued Operations: |
1,253,559.7568 | What will Secured debt be like in 2007 Ended December 31 if it develops with the same increasing rate as in 2006 Ended December 31? (in thousand) | Undistributed earnings of $696.9 million from certain foreign subsidiaries are considered to be permanently reinvested abroad and will not be repatriated to the United States in the foreseeable future. Because those earnings are considered to be indefinitely reinvested, no domestic federal or state deferred income taxes have been provided thereon. If we were to make a distribution of any portion of those earnings in the form of dividends or otherwise, we would be subject to both U. S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign jurisdictions. Because of the availability of U. S. foreign tax credit carryforwards, it is not practicable to determine the domestic federal income tax liability that would be payable if such earnings were no longer considered to be reinvested indefinitely. A valuation allowance is provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Changes to our valuation allowance during the years ended May 31, 2015 and 2014 are summarized below (in thousands):
<table><tr><td>Balance at May 31, 2013</td><td>$-28,464</td></tr><tr><td>Utilization of foreign net operating loss carryforwards</td><td>2,822</td></tr><tr><td>Allowance for foreign tax credit carryforward</td><td>18,061</td></tr><tr><td>Other</td><td>382</td></tr><tr><td>Balance at May 31, 2014</td><td>-7,199</td></tr><tr><td>Utilization of foreign net operating loss carryforwards</td><td>3,387</td></tr><tr><td>Other</td><td>-11</td></tr><tr><td>Balance at May 31, 2015</td><td>$-3,823</td></tr></table>
Net operating loss carryforwards of foreign subsidiaries totaling $12.4 million and U. S. net operating loss carryforwards previously acquired totaling $19.8 million at May 31, 2015 will expire between May 31, 2017 and May 31, 2033 if not utilized. Capital loss carryforwards of U. S. subsidiaries totaling $4.7 million will expire if not utilized by May 31, 2017. Tax credit carryforwards totaling $8.4 million at May 31, 2015 will expire between May 31, 2017 and May 31, 2023 if not utilized. We conduct business globally and file income tax returns in the U. S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities around the world. As a result of events that occurred in the fourth quarter of the year ended May 31, 2015, management concluded that it was more likely than not that the tax positions in a foreign jurisdiction, for which we had recorded estimated liabilities of $65.6 million in other noncurrent liabilities on our consolidated balance sheet, would be sustained on their technical merits based on information available as of May 31, 2015. Therefore, the liability and corresponding deferred tax assets were eliminated as of May 31, 2015. The uncertain tax positions have been subject to an ongoing examination in that foreign jurisdiction by the tax authority. Discussions and correspondence between the tax authority and us during the fourth quarter indicated that the likelihood of the positions being sustained had increased. Subsequent to May 31, 2015, we received a final closure notice regarding the examination resulting in no adjustments to taxable income related to this matter for the tax returns filed for the periods ended May 31, 2010 through May 31, 2013. The unrecognized tax benefits were effectively settled with this final closure notice. We are no longer subjected to state income tax examinations for years ended on or before May 31, 2008, U. S. federal income tax examinations for fiscal years prior to 2012 and United Kingdom federal income tax examinations for years ended on or before May 31, 2013. Item 6. SELECTED FINANCIAL DATA The following table sets forth selected consolidated financial and other information as of and for each of the years in the five-year period ended December 31, 2007. The table should be read in conjunction with our consolidated financial statements and the notes thereto, and Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, included elsewhere in this Report.
<table><tr><td></td><td colspan="5">Years Ended December 31, (In thousands, except per share data and apartment homes owned)</td></tr><tr><td></td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td> Operating Data(a)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Rental income</td><td>$497,474</td><td>$463,719</td><td>$407,038</td><td>$306,691</td><td>$244,758</td></tr><tr><td>Loss before minority interests and discontinued operations</td><td>-100,596</td><td>-91,870</td><td>-63,499</td><td>-58,003</td><td>-59,187</td></tr><tr><td>Income from discontinued operations, net of minority interests</td><td>208,130</td><td>214,102</td><td>214,126</td><td>150,073</td><td>123,453</td></tr><tr><td>Net income</td><td>221,349</td><td>128,605</td><td>155,166</td><td>97,152</td><td>70,404</td></tr><tr><td>Distributions to preferred stockholders</td><td>13,911</td><td>15,370</td><td>15,370</td><td>19,531</td><td>26,326</td></tr><tr><td>Net income available to common stockholders</td><td>205,177</td><td>113,235</td><td>139,796</td><td>71,892</td><td>24,807</td></tr><tr><td>Common distributions declared</td><td>177,540</td><td>168,408</td><td>163,690</td><td>152,203</td><td>134,876</td></tr><tr><td>Weighted average number of common shares outstanding — basic</td><td>134,016</td><td>133,732</td><td>136,143</td><td>128,097</td><td>114,672</td></tr><tr><td>Weighted average number of common shares outstanding — diluted</td><td>134,016</td><td>133,732</td><td>136,143</td><td>128,097</td><td>114,672</td></tr><tr><td>Weighted average number of common shares, OP Units, and common stock equivalents outstanding — diluted</td><td>146,936</td><td>147,981</td><td>150,141</td><td>145,842</td><td>136,975</td></tr><tr><td>Per share — basic and diluted:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loss from continuing operations available to common stockholders, net of minority interests</td><td>$-0.02</td><td>$-0.75</td><td>$-0.54</td><td>$-0.61</td><td>$-0.86</td></tr><tr><td>Income from discontinued operations, net of minority interests</td><td>1.55</td><td>1.60</td><td>1.57</td><td>1.17</td><td>1.08</td></tr><tr><td>Net income available to common stockholders</td><td>1.53</td><td>0.85</td><td>1.03</td><td>0.56</td><td>0.22</td></tr><tr><td>Common distributions declared</td><td>1.32</td><td>1.25</td><td>1.20</td><td>1.17</td><td>1.14</td></tr><tr><td> Balance Sheet Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Real estate owned, at cost</td><td>$5,952,541</td><td>$5,820,122</td><td>$5,512,424</td><td>$5,243,296</td><td>$4,351,551</td></tr><tr><td>Accumulated depreciation</td><td>1,371,759</td><td>1,253,727</td><td>1,123,829</td><td>1,007,887</td><td>896,630</td></tr><tr><td>Total real estate owned, net of accumulated depreciation</td><td>4,580,782</td><td>4,566,395</td><td>4,388,595</td><td>4,235,409</td><td>3,454,921</td></tr><tr><td>Total assets</td><td>4,801,121</td><td>4,675,875</td><td>4,541,593</td><td>4,332,001</td><td>3,543,643</td></tr><tr><td>Secured debt</td><td>1,137,936</td><td>1,182,919</td><td>1,116,259</td><td>1,197,924</td><td>1,018,028</td></tr><tr><td>Unsecured debt</td><td>2,364,740</td><td>2,155,866</td><td>2,043,518</td><td>1,682,058</td><td>1,114,009</td></tr><tr><td>Total debt</td><td>3,502,676</td><td>3,338,785</td><td>3,159,777</td><td>2,879,982</td><td>2,132,037</td></tr><tr><td>Stockholders’ equity</td><td>1,019,393</td><td>1,055,255</td><td>1,107,724</td><td>1,195,451</td><td>1,163,436</td></tr><tr><td>Number of common shares outstanding</td><td>133,318</td><td>135,029</td><td>134,012</td><td>136,430</td><td>127,295</td></tr><tr><td> Other Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td> Cash Flow Data</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash provided by operating activities</td><td>$250,578</td><td>$229,613</td><td>$248,186</td><td>$251,747</td><td>$234,945</td></tr><tr><td>Cash used in investing activities</td><td>-71,397</td><td>-149,973</td><td>-219,017</td><td>-595,966</td><td>-304,217</td></tr><tr><td>Cash (used in)/provided by financing activities</td><td>-178,105</td><td>-93,040</td><td>-21,530</td><td>347,299</td><td>70,944</td></tr><tr><td> Funds from Operations(b)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Funds from operations — basic</td><td>$247,210</td><td>$244,471</td><td>$238,254</td><td>$211,670</td><td>$193,750</td></tr><tr><td>Funds from operations — diluted</td><td>250,936</td><td>248,197</td><td>241,980</td><td>219,557</td><td>208,431</td></tr><tr><td> Apartment Homes Owned</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total apartment homes owned at December 31</td><td>65,867</td><td>70,339</td><td>74,875</td><td>78,855</td><td>76,244</td></tr><tr><td>Weighted average number of apartment homes owned during the year</td><td>69,662</td><td>73,731</td><td>76,069</td><td>76,873</td><td>74,550</td></tr></table>
(a) Reclassified to conform to current year presentation in accordance with FASB Statement No.144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” as described in Note 3 to the consolidated financial statements. (b) Funds from operations, or FFO, is defined as net income (computed in accordance with generally accepted accounting principles), excluding gains (or losses) from sales of depreciable property, premiums or original issuance costs associated with preferred stock redemptions, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. This definition conforms with the National Association of Real Estate Investment Trust’s definition issued in April 2002. We consider FFO in evaluating property acquisitions and our operating performance and believe that FFO should be considered along with, but not as an alternative to, net income and cash flows as a measure of our activities in accordance with generally accepted accounting principles. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles and is not necessarily indicative of cash available to fund cash needs. RE3 is our subsidiary that focuses on development, land entitlement and short-term hold investments. RE3 tax benefits and gain on sales, net of taxes, is defined as net sales proceeds less a tax provision and the gross investment basis of the asset before accumulated depreciation. We consider FFO with RE3 tax benefits and gain on sales, net of taxes, to be a meaningful supplemental measure of performance because the short-term use of funds produce a profit that differs from the traditional long-term investment in real estate for REITs. For 2005, FFO includes $2.5 million of hurricane related insurance recoveries. For 2004, FFO includes a charge of $5.5 million to cover hurricane related expenses. For the years ended December 31, 2007, 2004 and 2003, distributions to preferred stockholders exclude $2.6 million, $5.7 million and $19.3 million, respectively, related to premiums on preferred stock repurchases. $1,138 per home, and major renovations totaled $71.8 million or $1,045 per home for the year ended December 31, 2007. The following table outlines capital expenditures and repair and maintenance costs for all of our communities, excluding real estate under development, condominium conversions and commercial properties, for the periods presented:
<table><tr><td></td><td colspan="3">Year Ended December 31, (dollars in thousands)</td><td colspan="3">Year Ended December 31, (per home)</td></tr><tr><td></td><td> 2007</td><td> 2006</td><td>% Change</td><td> 2007</td><td> 2006</td><td>% Change</td></tr><tr><td>Turnover capital expenditures</td><td>$13,362</td><td>$14,214</td><td>-6.0%</td><td>$194</td><td>$197</td><td>-1.5%</td></tr><tr><td>Asset preservation expenditures</td><td>31,071</td><td>20,409</td><td>52.2%</td><td>452</td><td>283</td><td>59.7%</td></tr><tr><td>Total recurring capital expenditures</td><td>44,433</td><td>34,623</td><td>28.3%</td><td>646</td><td>480</td><td>34.6%</td></tr><tr><td>Revenue enhancing improvements</td><td>78,209</td><td>144,102</td><td>-45.7%</td><td>1,138</td><td>2,002</td><td>-43.2%</td></tr><tr><td>Major renovations</td><td>71,785</td><td>36,996</td><td>94.0%</td><td>1,045</td><td>514</td><td>103.3%</td></tr><tr><td>Total capital expenditures</td><td>$194,427</td><td>$215,721</td><td>-9.9%</td><td>$2,829</td><td>$2,996</td><td>-5.6%</td></tr><tr><td>Repair and maintenance expense</td><td>$42,518</td><td>$43,498</td><td>-2.3%</td><td>$619</td><td>$604</td><td>2.5%</td></tr></table>
Total capital expenditures for our communities decreased $21.3 million or $167 per home for the year ended December 31, 2007 compared to the same period in 2006. This decrease was attributable to a $65.9 million decrease in revenue enhancing improvements at certain of our properties that was offset by an additional $9.8 million being invested in recurring capital expenditures and an additional $34.8 million being invested in major renovations as compared to the same period in 2006. We will continue to selectively add revenue enhancing improvements which we believe will provide a return on investment substantially in excess of our cost of capital. Recurring capital expenditures during 2008 are currently expected to be approximately $650 per home. Impairment of Long-Lived Assets We record impairment losses on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by the future operation and disposition of those assets are less than the net book value of those assets. Our cash flow estimates are based upon historical results adjusted to reflect our best estimate of future market and operating conditions and our estimated holding periods. The net book value of impaired assets is reduced to fair market value. Our estimates of fair market value represent our best estimate based upon industry trends and reference to market rates and transactions. Real Estate Investment Properties We purchase real estate investment properties from time to time and allocate the purchase price to various components, such as land, buildings, and intangibles related to in-place leases in accordance with FASB Statement No.141, “Business Combinations. ” The purchase price is allocated based on the relative fair value of each component. The fair value of buildings is determined as if the buildings were vacant upon acquisition and subsequently leased at market rental rates. As such, the determination of fair value considers the present value of all cash flows expected to be generated from the property including an initial lease-up period. We determine the fair value of in-place leases by assessing the net effective rent and remaining term of the lease relative to market terms for similar leases at acquisition. In addition, we consider the cost of acquiring similar leases, the foregone rents associated with the lease-up period, and the carrying costs associated with the lease-up period. The fair value of in-place leases is recorded and amortized as amortization expense over the remaining contractual lease period. |
57.65604 | what percentage of total debt maturity occurred in 2018 and thereafter? | Canadian dollars. The remainder of the increase in North America Onshore LOE is primarily due to increased costs related to our Jackfish operation in Canada. U. S. Offshore LOE decreased primarily due to property divestitures in the second quarter of 2010. The increase due to exchange rates was also the main contributor to the changes in North America Onshore and total LOE per Boe.2009 vs. 2008 LOE decreased $181 million in 2009. LOE dropped $182 million due to declining costs for fuel, materials, equipment and personnel, as well as declines in maintenance and well workover projects. Such declines largely resulted from decreasing demand for field services due to lower oil and gas prices. Changes in the exchange rate between the U. S. and Canadian dollar reduced LOE $49 million. Additionally, LOE decreased $31 million as a result of hurricane damages in 2008 to certain of our U. S. Offshore facilities and transportation systems. These factors, excluding the hurricane damage, were also the main contributors to the decrease in LOE per Boe on our North America Onshore properties. Production growth at our large-scale Jackfish project also contributed to a decrease in LOE per Boe. As Jackfish production approached the facility’s capacity during 2009, its per-unit costs declined, contributing to lower overall LOE per Boe. The remainder of our four percent company-wide production growth added $81 million to LOE during 2009. Taxes Other Than Income Taxes Taxes other than income taxes consist primarily of production taxes and ad valorem taxes assessed by various government agencies on our U. S. Onshore properties. Production taxes are based on a percentage of production revenues that varies by property and government jurisdiction. Ad valorem taxes generally are based on property values as determined by the government agency assessing the tax. The following table details the changes in our taxes other than income taxes.
<table><tr><td></td><td colspan="5"> Year Ended December 31,</td></tr><tr><td></td><td> 2010</td><td> 2010 vs 2009-1</td><td> 2009</td><td> 2009 vs 2008-1</td><td> 2008</td></tr><tr><td></td><td colspan="5"> ($ in millions)</td></tr><tr><td>Production</td><td>$210</td><td>+59%</td><td>$132</td><td>−57%</td><td>$306</td></tr><tr><td>Ad valorem</td><td>165</td><td>−6%</td><td>175</td><td>+8%</td><td>162</td></tr><tr><td>Other</td><td>5</td><td>−30%</td><td>7</td><td>−4%</td><td>8</td></tr><tr><td>Total</td><td>$380</td><td>+21%</td><td>$314</td><td>−34%</td><td>$476</td></tr></table>
(1) All percentage changes included in this table are based on actual figures and not the rounded figures included in this table.2010 vs. 2009 Production taxes increased $78 million in 2010. This increase was largely due to higher U. S. Onshore revenues, as well as a decrease in production tax credits associated with certain properties in the state of Texas. Ad valorem taxes decreased $10 million primarily due to lower assessed values of our U. S. Onshore oil and gas property and equipment.2009 vs. 2008 Production taxes decreased $174 million in 2009. This decrease was largely due to lower U. S. Onshore revenues, as well as an increase in production tax credits associated with certain properties in the state of Texas. Ad valorem taxes increased $13 million primarily due to higher assessed oil and gas property and equipment values. Depreciation, Depletion and Amortization of Oil and Gas Properties (“DD&A”) DD&A of oil and gas properties is calculated by multiplying the percentage of total proved reserve volumes produced during the year, by the “depletable base. ” The depletable base represents our capitalized investment, net of accumulated DD&A and reductions of carrying value, plus future development costs related to proved undeveloped reserves. Generally, when reserve volumes are revised up or down, then the DD&A rate per unit of production will change inversely. However, when the depletable base changes, then the DD&A rate moves in the same direction. The per unit DD&A rate is not affected by production volumes. Absolute or total DD&A, as opposed to the rate per unit of production, generally moves in the same direction as production volumes. Oil and gas property DD&A is calculated separately on a country-by-country basis.
<table><tr><td></td><td colspan="5"> Year Ended December 31,</td></tr><tr><td></td><td> 2012<sup>-1</sup></td><td> Change</td><td> 2011<sup>-1</sup></td><td> Change</td><td> 2010<sup>-1</sup></td></tr><tr><td> Oil (per Bbl)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Onshore</td><td>$88.68</td><td>-3%</td><td>$91.19</td><td>+21%</td><td>$75.53</td></tr><tr><td>Canada</td><td>$68.08</td><td>-8%</td><td>$74.32</td><td>+20%</td><td>$62.00</td></tr><tr><td>North America Onshore</td><td>$80.35</td><td>-3%</td><td>$83.16</td><td>+22%</td><td>$68.17</td></tr><tr><td>U.S. Offshore</td><td>$—</td><td>N/M</td><td>$—</td><td>-100%</td><td>$77.81</td></tr><tr><td>Total</td><td>$80.35</td><td>-3%</td><td>$83.16</td><td>+21%</td><td>$68.75</td></tr><tr><td> Bitumen (per Bbl)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Canada</td><td>$47.75</td><td>-18%</td><td>$58.16</td><td>+11%</td><td>$52.51</td></tr><tr><td> Gas (per Mcf)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Onshore</td><td>$2.32</td><td>-34%</td><td>$3.50</td><td>-6%</td><td>$3.73</td></tr><tr><td>Canada</td><td>$2.49</td><td>-36%</td><td>$3.87</td><td>-6%</td><td>$4.11</td></tr><tr><td>North America Onshore</td><td>$2.36</td><td>-34%</td><td>$3.58</td><td>-6%</td><td>$3.82</td></tr><tr><td>U.S. Offshore</td><td>$—</td><td>N/M</td><td>$—</td><td>-100%</td><td>$5.12</td></tr><tr><td>Total</td><td>$2.36</td><td>-34%</td><td>$3.58</td><td>-7%</td><td>$3.84</td></tr><tr><td> NGLs (per Bbl)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Onshore</td><td>$28.49</td><td>-28%</td><td>$39.47</td><td>+28%</td><td>$30.78</td></tr><tr><td>Canada</td><td>$48.63</td><td>-13%</td><td>$55.99</td><td>+20%</td><td>$46.60</td></tr><tr><td>North America Onshore</td><td>$30.42</td><td>-26%</td><td>$41.10</td><td>+26%</td><td>$32.55</td></tr><tr><td>U.S. Offshore</td><td>$—</td><td>N/M</td><td>$—</td><td>-100%</td><td>$38.22</td></tr><tr><td>Total</td><td>$30.42</td><td>-26%</td><td>$41.10</td><td>+26%</td><td>$32.61</td></tr><tr><td> Combined (per Boe)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Onshore</td><td>$25.59</td><td>-18%</td><td>$31.31</td><td>+10%</td><td>$28.42</td></tr><tr><td>Canada</td><td>$37.01</td><td>-14%</td><td>$43.23</td><td>+11%</td><td>$39.11</td></tr><tr><td>North America Onshore</td><td>$28.65</td><td>-17%</td><td>$34.64</td><td>+10%</td><td>$31.52</td></tr><tr><td>U.S. Offshore</td><td>$—</td><td>N/M</td><td>$—</td><td>-100%</td><td>$49.06</td></tr><tr><td>Total</td><td>$28.65</td><td>-17%</td><td>$34.64</td><td>+9%</td><td>$31.91</td></tr></table>
(1) Prices presented exclude any effects due to oil, gas and NGL derivatives. Commodity Sales The volume and price changes in the tables above caused the following changes to our oil, gas and NGL sales.
<table><tr><td></td><td>Oil</td><td>Bitumen</td><td>Gas</td><td>NGLs</td><td>Total</td></tr><tr><td></td><td colspan="5">(In millions)</td></tr><tr><td>2010 sales</td><td>$2,169</td><td>$474</td><td>$3,572</td><td>$1,047</td><td>$7,262</td></tr><tr><td>Change due to volumes</td><td>30</td><td>193</td><td>88</td><td>147</td><td>458</td></tr><tr><td>Change due to prices</td><td>461</td><td>72</td><td>-249</td><td>311</td><td>595</td></tr><tr><td>2011 sales</td><td>2,660</td><td>739</td><td>3,411</td><td>1,505</td><td>8,315</td></tr><tr><td>Change due to volumes</td><td>337</td><td>273</td><td>-52</td><td>137</td><td>695</td></tr><tr><td>Change due to prices</td><td>-101</td><td>-181</td><td>-1,148</td><td>-427</td><td>-1,857</td></tr><tr><td>2012 sales</td><td>$2,896</td><td>$831</td><td>$2,211</td><td>$1,215</td><td>$7,153</td></tr></table>
Volumes 2012 vs. 2011 – Upstream sales increased $695 million due to a 4 percent increase in production. Oil and bitumen production were the largest drivers of the increase, accounting for nearly 90 percent of the higher sales. As a result of continued development of our liquids-rich properties in the Permian Basin, our oil sales increased $337 million. Bitumen sales increased $273 million due to development of our Jackfish thermal heavy oil projects in Canada. Additionally, our NGL sales increased $137 million as a result of continued drilling in the liquids-rich gas portions of the Barnett Shale, Cana-Woodford Shale and Granite Wash. These increases were partially offset by a slight decrease in our 2012 gas production, resulting in a $52 million decline in sales. DEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) Debt maturities as of December 31, 2012, excluding premiums and discounts, are as follows (in millions):
<table><tr><td>2013</td><td>$3,189</td></tr><tr><td>2014</td><td>500</td></tr><tr><td>2015</td><td>—</td></tr><tr><td>2016</td><td>500</td></tr><tr><td>2017</td><td>750</td></tr><tr><td>2018 and thereafter</td><td>6,725</td></tr><tr><td>Total</td><td>$11,664</td></tr></table>
Credit Lines Devon has a $3.0 billion syndicated, unsecured revolving line of credit (the “Senior Credit Facility”). The Senior Credit Facility has an initial maturity date of October 24, 2017. However, prior to the maturity date, Devon has the option to extend the maturity for up to two additional one-year periods, 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, 2012, 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, 2012, Devon was in compliance with this covenant with a debt-tocapitalization ratio of 25.4 percent. Commercial Paper Devon has access to $5.0 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, 2012, Devon’s weighted average borrowing rate on its commercial paper borrowings was 0.37 percent. Other Debentures and Notes Following are descriptions of the various other debentures and notes outstanding at December 31, 2012, as listed in the table presented at the beginning of this note. borrowings outstanding at the end of 2018 and 2017 represent borrowings made under, or supported by, these lines of credit. Borrowings under the lines of credit were made by certain international affiliates of the Company on terms and at interest rates generally extended to companies of comparable creditworthiness in those markets. The weighted average interest rates of the outstanding borrowings under the uncommitted lines of credit as of December 30, 2018 and December 31, 2017 were 3.92% and 4.32%, respectively. The Company had no borrowings outstanding under its committed line of credit at December 30, 2018. During 2018, Hasbro’s working capital needs were fulfilled by cash available and cash generated from operations. During the fourth quarter of 2018, the Company entered into an amended and restated revolving credit agreement with the lenders party thereto (the “Amended Agreement”) which provides the Company with a $1,100,000 committed borrowing facility. The Amended Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. The Amended Agreement also provides for a potential additional incremental commitment increase of up to $500,000. The Amended Agreement extends the term of our prior facility from March 30, 2020 to November 26, 2023. The Amended Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. The Company was in compliance with all covenants as of and for the fiscal year ended December 30, 2018. The Company pays a commitment fee (0.10% as of December 30, 2018) based on the unused portion of the facility and interest equal to a Base Rate or Eurocurrency Rate plus a spread on borrowings under the facility. The Base Rate is determined based on either the Federal Funds Rate plus a spread, Prime Rate or Eurocurrency Rate plus a spread. The commitment fee and the amount of the spread to the Base Rate or Eurocurrency Rate both vary based on the Company’s long-term debt ratings and the Company’s leverage. At December 30, 2018, the interest rate under the facility was equal to Eurocurrency Rate plus 1.125%. The Company has an agreement with a group of banks providing a commercial paper program (the “Program”). Under the Program, at the Company’s request the banks may either purchase from the Company, or arrange for the sale by the Company of, unsecured commercial paper notes. Borrowings under the Program are supported by the aforementioned unsecured committed line of credit and the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of $1,000,000. The maturities of the notes may vary but may not exceed 397 days. Subject to market conditions, the notes will be sold under customary terms in the commercial paper market and will be issued at a discount to par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis. The interest rates will vary based on market conditions and the ratings assigned to the notes by the credit rating agencies at the time of issuance. At December 30, 2018, the Company did not have any notes outstanding under the Program. At December 31, 2017, the Company had notes outstanding under the Program of $137,500 with a weighted average interest rate of 1.85%. (9) Accrued Liabilities Components of accrued liabilities for the fiscal years ended on December 30, 2018 and December 31, 2017 are as follows: |
1,085,014 | What was the total amount of ASSETS greater than 500000 in 2003? (in thousand) | PERFORMANCE GRAPH The following graph compares the cumulative five-year total return provided shareholders on our Class A common stock relative to the cumulative total returns of the S&P 500 index and two customized peer groups. The old peer group includes IntercontinentalExchange, Inc. , NYSE Euronext and The Nasdaq OMX Group Inc. The new peer group is the same as the old peer group with the addition of CBOE Holdings, Inc. which completed its initial public offering in June 2010. An investment of $100 (with reinvestment of all dividends) is assumed to have been made in our Class A common stock, in the peer groups and the S&P 500 index on December 31, 2005 and its relative performance is tracked through December 31, 2010. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among CME Group Inc. , the S&P 500 Index, an Old Peer Group and a New Peer Group
<table><tr><td></td><td>2006</td><td>2007</td><td>2008</td><td>2009</td><td>2010</td></tr><tr><td>CME Group Inc.</td><td>$139.48</td><td>$188.81</td><td>$58.66</td><td>$96.37</td><td>$93.73</td></tr><tr><td>S&P 500</td><td>115.80</td><td>122.16</td><td>76.96</td><td>97.33</td><td>111.99</td></tr><tr><td>Old Peer Group</td><td>155.58</td><td>190.78</td><td>72.25</td><td>76.11</td><td>87.61</td></tr><tr><td>New Peer Group</td><td>155.58</td><td>190.78</td><td>72.25</td><td>76.11</td><td>87.61</td></tr></table>
*$100 invested on 12/31/05 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright?2011 S&P, a division of The McGraw-Hill Companies Inc. All rights reserved. New Peer Group The stock price performance included in this graph is not necessarily indicative of future stock price performance LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Company has the option to satisfy the repurchases with any combination of cash and/or shares of the Company’s common stock. The Company will have the option to redeem the Notes, in cash, at any time after the fifth anniversary for the initial issue price plus accrued yield to redemption. The Company will pay contingent interest on the Notes during specified six-month periods beginning on April 4, 2006 if the market price of the Notes exceeds specified levels. At November 30, 2003, the carrying value of outstanding Notes, net of unamortized original issue discount, was $261.0 million. At November 30, 2003, the Company had mortgage notes on land and other debt bearing interest at fixed interest rates ranging from 2.9% to 25.0% with an average rate of 8.8%. The notes are due through 2009 and are collateralized by land. At November 30, 2003, the carrying value of the mortgage notes on land and other debt was $73.0 million. The minimum aggregate principal maturities of senior notes and other debts payable during the five years subsequent to November 30, 2003 are as follows: 2004—$21.5 million; 2005—$45.7 million; 2006—$18.4 million; 2007—$4.0 million and 2008—$4.0 million. The remaining principal obligations are due subsequent to November 30, 2008. The Company’s debt arrangements contain certain financial covenants with which the Company was in compliance at November 30, 2003.8. Financial Services The assets and liabilities related to the Company’s financial services operations were as follows:
<table><tr><td></td><td colspan="2"> November 30, </td></tr><tr><td></td><td> 2003 </td><td> 2002 </td></tr><tr><td></td><td colspan="2"> (In thousands)</td></tr><tr><td> Assets:</td><td></td><td></td></tr><tr><td>Cash and receivables, net</td><td>$301,530</td><td>239,893</td></tr><tr><td>Mortgage loans held for sale, net</td><td>542,507</td><td>708,304</td></tr><tr><td>Mortgage loans, net</td><td>30,451</td><td>30,341</td></tr><tr><td>Title plants</td><td>18,215</td><td>15,586</td></tr><tr><td>Investment securities</td><td>28,022</td><td>22,379</td></tr><tr><td>Goodwill, net</td><td>43,503</td><td>34,002</td></tr><tr><td>Other</td><td>46,670</td><td>35,422</td></tr><tr><td>Limited-purpose finance subsidiaries</td><td>5,812</td><td>9,202</td></tr><tr><td></td><td>$1,016,710</td><td>1,095,129</td></tr><tr><td> Liabilities:</td><td></td><td></td></tr><tr><td>Notes and other debts payable</td><td>$734,657</td><td>853,416</td></tr><tr><td>Other</td><td>132,797</td><td>108,770</td></tr><tr><td>Limited-purpose finance subsidiaries</td><td>5,812</td><td>9,202</td></tr><tr><td></td><td>$873,266</td><td>971,388</td></tr></table>
At November 30, 2003, the Financial Services Division had warehouse lines of credit totaling $750 million, which included a $145 million temporary increase that expired in December 2003, to fund its mortgage loan activities. Borrowings under the facilities were $714.4 million and $489.7 million at November 30, 2003 and 2002, respectively, and were collateralized by mortgage loans and receivables on loans sold not yet funded with outstanding principal balances of $742.2 million and $523.8 million, respectively. There are several interest rate pricing options which fluctuate with market rates. The effective interest rate on the facilities at November 30, 2003 and 2002 was 1.7% and 2.3%, respectively. The warehouse lines of credit mature in May 2004 ($250 million) and in October 2005 ($500 million), at which time the Division expects both facilities to be renewed. Additionally, the line of credit maturing in May 2004 includes an incremental $100 million commitment available at each fiscal quarter-end. At November 30, 2003 and 2002, the Division had advances under a conduit funding agreement with a major financial institution amounting to $0.6 million and $343.7 million, respectively. Borrowings under this agreement are collateralized by mortgage loans and had an LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The following table summarizes information about stock options outstanding at November 30, 2003 (adjusted for the January 2004 two-for-one stock split):
<table><tr><td></td><td colspan="3"> Options Outstanding </td><td colspan="2"> Options Exercisable </td></tr><tr><td> Range of Per Share Exercise Prices</td><td> Number Outstanding at November 30, 2003 </td><td> Weighted Average Remaining Contractual Life </td><td> Weighted Average Per Share Exercise Price </td><td> Number Outstanding at November 30, 2003 </td><td> Weighted Average Per Share Exercise Price </td></tr><tr><td>$ 4.02—$ 5.19</td><td>66,176</td><td>2.7 years</td><td>$4.80</td><td>31,126</td><td>$4.88</td></tr><tr><td>$ 7.02—$ 8.38</td><td>1,022,714</td><td>4.3 years</td><td>$7.58</td><td>290,114</td><td>$7.67</td></tr><tr><td>$ 9.25—$12.88</td><td>379,944</td><td>4.0 years</td><td>$9.88</td><td>64,244</td><td>$9.92</td></tr><tr><td>$14.93—$18.88</td><td>1,179,736</td><td>7.2 years</td><td>$16.70</td><td>275,448</td><td>$16.75</td></tr><tr><td>$21.10—$26.32</td><td>3,843,448</td><td>5.4 years</td><td>$24.91</td><td>84,404</td><td>$24.06</td></tr><tr><td>$27.84—$43.16</td><td>168,950</td><td>4.6 years</td><td>$35.73</td><td>—</td><td>$—</td></tr></table>
Employee Stock Ownership/401(k) Plan Prior to 1998, the Employee Stock Ownership/401(k) Plan (the “Plan”) provided shares of stock to employees who had completed one year of continuous service with the Company. During 1998, the Plan was amended to exclude any new shares from being provided to employees. All prior year contributions to employees actively employed on or after October 1, 1998 vested at a rate of 20% per year over a five year period. All active participants in the Plan whose employment terminated prior to October 1, 1998 vested based upon the Plan that was active prior to their termination of employment. Under the 401(k) portion of the Plan, contributions made by employees can be invested in a variety of mutual funds or proprietary funds provided by the Plan trustee. The Company may also make contributions for the benefit of employees. The Company records as compensation expense an amount which approximates the vesting of the contributions to the Employee Stock Ownership portion of the Plan, as well as the Company’s contribution to the 401(k) portion of the Plan. This amount was $9.1 million in 2003, $7.0 million in 2002 and $6.5 million in 2001.13. Deferred Compensation Plan In June 2002, the Company adopted the Lennar Corporation Nonqualified Deferred Compensation Plan (the “Deferred Compensation Plan”) that allows a selected group of members of management to defer a portion of their salaries and bonuses and up to 100% of their restricted stock. All participant contributions to the Deferred Compensation Plan are vested. Salaries and bonuses that are deferred under the Deferred Compensation Plan are credited with earnings or losses based on investment decisions made by the participants. The cash contributions to the Deferred Compensation Plan are invested by the Company in various investment securities that are classified as trading. Restricted stock is deferred under the Deferred Compensation Plan by surrendering the restricted stock in exchange for the right to receive in the future a number of shares equal to the number of restricted shares that are surrendered. The surrender is reflected as a reduction in stockholders’ equity equal to the value of the restricted stock when it was issued, with an offsetting increase in stockholders’ equity to reflect a deferral of the compensation expense related to the surrendered restricted stock. Changes in the value of the shares that will be issued in the future are not reflected in the financial statements. As of November 30, 2003, approximately 534,000 Class A shares and 53,400 Class B shares of restricted stock (adjusted for the April 2003 10% Class B stock distribution and January 2004 two-for-one stock split) had been surrendered in exchange for rights under the Deferred Compensation Plan, resulting in a reduction in stockholders’ equity of $4.9 million fully offset by an increase in stockholders’ equity to reflect the deferral of compensation in that amount. Shares that the Company is obligated to issue in the future under the Deferred Compensation Plan are treated as outstanding shares in both the Company’s basic and diluted earnings per share calculations for the years ended November 30, 2003 and 2002. LENNAR CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 14. Financial Instruments The following table presents the carrying amounts and estimated fair values of financial instruments held by the Company at November 30, 2003 and 2002, using available market information and what the Company believes to be appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies might have a material effect on the estimated fair value amounts. The table excludes cash, receivables and accounts payable, which had fair values approximating their carrying values.
<table><tr><td></td><td colspan="4">November 30,</td></tr><tr><td></td><td colspan="2">2003</td><td colspan="2">2002</td></tr><tr><td></td><td>Carrying Amount</td><td>Fair Value</td><td>Carrying Amount</td><td>Fair Value</td></tr><tr><td></td><td colspan="4">(In thousands)</td></tr><tr><td> ASSETS</td><td></td><td></td><td></td><td></td></tr><tr><td> Homebuilding:</td><td></td><td></td><td></td><td></td></tr><tr><td>Investments—trading</td><td>$6,859</td><td>6,859</td><td>—</td><td>—</td></tr><tr><td> Financial services:</td><td></td><td></td><td></td><td></td></tr><tr><td>Mortgage loans held for sale, net</td><td>$542,507</td><td>542,507</td><td>708,304</td><td>708,304</td></tr><tr><td>Mortgage loans, net</td><td>30,451</td><td>29,355</td><td>30,341</td><td>29,666</td></tr><tr><td>Investments held-to-maturity</td><td>28,022</td><td>28,021</td><td>22,379</td><td>22,412</td></tr><tr><td>Limited-purpose finance subsidiaries—collateral for bonds and notes payable</td><td>5,812</td><td>6,129</td><td>9,202</td><td>9,703</td></tr><tr><td> LIABILITIES</td><td></td><td></td><td></td><td></td></tr><tr><td> Homebuilding:</td><td></td><td></td><td></td><td></td></tr><tr><td>Senior notes and other debts payable</td><td>$1,552,217</td><td>1,878,830</td><td>1,585,309</td><td>1,779,705</td></tr><tr><td> Financial services:</td><td></td><td></td><td></td><td></td></tr><tr><td>Notes and other debts payable</td><td>$734,657</td><td>734,657</td><td>853,416</td><td>853,416</td></tr><tr><td>Limited-purpose finance subsidiaries—bonds and notes payable</td><td>5,812</td><td>6,129</td><td>9,202</td><td>9,703</td></tr><tr><td> OTHER FINANCIAL INSTRUMENTS</td><td></td><td></td><td></td><td></td></tr><tr><td> Homebuilding:</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rate swaps</td><td>$-33,696</td><td>-33,696</td><td>-39,256</td><td>-39,256</td></tr><tr><td> Financial services assets (liabilities):</td><td></td><td></td><td></td><td></td></tr><tr><td>Commitments to originate loans</td><td>$-229</td><td>-229</td><td>-717</td><td>-717</td></tr><tr><td>Forward commitments to sell loans and option contracts</td><td>-1,120</td><td>-1,120</td><td>1,430</td><td>1,430</td></tr></table>
The following methods and assumptions are used by the Company in estimating fair values: Homebuilding—Investments classified as trading (included in other assets): The fair value is based on quoted market prices. Senior notes and other debts payable: The fair value of fixed rate borrowings is based on quoted market prices. Variable rate borrowings are tied to market indices and therefore approximate fair value. Interest rate swaps: The fair value is based on dealer quotations and generally represents an estimate of the amount the Company would pay or receive to terminate the agreement at the reporting date. Financial services—The fair values are based on quoted market prices, if available. The fair values for instruments which do not have quoted market prices are estimated by the Company on the basis of discounted cash flows or other financial information. The Company utilizes interest rate swap agreements to manage interest costs and hedge against risks associated with changing interest rates. Counterparties to these agreements are major financial institutions. Credit loss from counterparty non-performance is not anticipated. A majority of the Company’s available variable rate borrowings are based on the London Interbank Offered Rate (“LIBOR”) index. At November 30, 2003, the |
0.93786 | What is the ratio of Attritional for Current Year to the total in 2013? | allows us to repurchase shares at times when we may otherwise be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. Subject to applicable regulations, we may elect to amend or cancel this repurchase program or the share repurchase parameters at our discretion. As of December 31, 2018, we have repurchased an aggregate of 4,510,000 shares of common stock under this program. Credit Facilities and Short-Term Debt We have an unsecured revolving credit facility of $2.25 billion that expires in June 2023. In March 2018, AWCC and its lenders amended and restated the credit agreement with respect to AWCC’s revolving credit facility to increase the maximum commitments under the facility from $1.75 billion to $2.25 billion, and to extend the expiration date of the facility from June 2020 to March 2023. All other terms, conditions and covenants with respect to the existing facility remained unchanged. Subject to satisfying certain conditions, the credit agreement also permits AWCC to increase the maximum commitment under the facility by up to an aggregate of $500 million, and to request extensions of its expiration date for up to two, one-year periods. Interest rates on advances under the facility are based on a credit spread to the LIBOR rate or base rate in accordance with Moody Investors Service’s and Standard & Poor’s Financial Services’ then applicable credit rating on AWCC’s senior unsecured, non-credit enhanced debt. The facility is used principally to support AWCC’s commercial paper program and to provide up to $150 million in letters of credit. Indebtedness under the facility is considered “debt” for purposes of a support agreement between the Company and AWCC, which serves as a functional equivalent of a guarantee by the Company of AWCC’s payment obligations under the credit facility. AWCC also has an outstanding commercial paper program that is backed by the revolving credit facility, the maximum aggregate outstanding amount of which was increased in March 2018, from $1.60 billion to $2.10 billion. The following table provides the aggregate credit facility commitments, letter of credit sub-limit under the revolving credit facility and commercial paper limit, as well as the available capacity for each as of December 31, 2018 and 2017:
<table><tr><td></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Total common shareholders' equity</td><td>40.4%</td><td>41.0%</td><td>42.1%</td></tr><tr><td>Long-term debt and redeemable preferred stock at redemption value</td><td>52.4%</td><td>49.6%</td><td>46.4%</td></tr><tr><td>Short-term debt and current portion of long-term debt</td><td>7.2%</td><td>9.4%</td><td>11.5%</td></tr><tr><td>Total</td><td>100%</td><td>100%</td><td>100%</td></tr></table>
The weighted average interest rate on AWCC short-term borrowings for the years ended December 31, 2018 and 2017 was approximately 2.28% and 1.24%, respectively. Capital Structure The following table provides the percentage of our capitalization represented by the components of our capital structure as of December 31: The effective income tax rate from continuing operations for the years ended December 31 varies from the U. S. statutory federal income tax rate as follows:
<table><tr><td></td><td colspan="3">Percentage of Pretax Earnings</td></tr><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Statutory federal income tax rate</td><td>35.0%</td><td>35.0%</td><td>35.0%</td></tr><tr><td>Increase (decrease) in tax rate resulting from:</td><td></td><td></td><td></td></tr><tr><td>State income taxes (net of federal income tax benefit)</td><td>0.8%</td><td>0.6%</td><td>0.7%</td></tr><tr><td>Foreign income taxed at lower rate than U.S. statutory rate</td><td>-11.6%</td><td>-10.2%</td><td>-17.1%</td></tr><tr><td>Resolution and expiration of statutes of limitation of uncertain tax positions</td><td>-6.5%</td><td>-3.1%</td><td>-0.7%</td></tr><tr><td>Permanent foreign exchange losses</td><td>-0.6%</td><td>-8.2%</td><td>-4.6%</td></tr><tr><td>Research credits, uncertain tax positions and other</td><td>-1.0%</td><td>3.4%</td><td>1.1%</td></tr><tr><td>Revaluation of U.S. deferred income taxes</td><td>-41.5%</td><td>—%</td><td>—%</td></tr><tr><td>TCJA - Transition Tax</td><td>41.4%</td><td>—%</td><td>—%</td></tr><tr><td>Effective income tax rate</td><td>16.0%</td><td>17.5%</td><td>14.4%</td></tr></table>
The Company’s effective tax rate for each of 2017, 2016 and 2015 differs from the U. S. federal statutory rate of 35.0% due principally to the Company’s earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U. S. federal statutory rate. In addition: ? The effective tax rate of 16.0% in 2017 includes 500 basis points of net tax benefits related to the revaluation of net U. S. deferred tax liabilities from 35.0% to 21.0% due to the TCJA and release of reserves upon statute of limitation expiration, partially offset by income tax expense related to the Transition Tax on foreign earnings due to the TCJA and changes in estimates associated with prior period uncertain tax positions. ? The effective tax rate of 17.5% in 2016 includes 350 basis points of net tax benefits from permanent foreign exchange losses and the release of reserves upon the expiration of statutes of limitation and audit settlements, partially offset by income tax expense related to repatriation of earnings and legal entity realignments associated with the Separation and changes in estimates associated with prior period uncertain tax positions. ? The effective tax rate of 14.4% in 2015 includes 290 basis points of net tax benefits from permanent foreign exchange losses, releases of valuation allowances related to foreign operating losses and the release of reserves upon the expiration of statutes of limitation, partially offset by changes in estimates associated with prior period uncertain tax positions. The Company made income tax payments related to both continuing and discontinued operations of $689 million, $767 million and $584 million in 2017, 2016 and 2015, respectively. Current income taxes payable related to both continuing and discontinued operations has been reduced by $85 million, $99 million, and $147 million in 2017, 2016 and 2015, respectively, for tax deductions attributable to stock-based compensation, of which, the excess tax benefit over the amount recorded for financial reporting purposes for both continuing and discontinued operations was $55 million, $50 million and $88 million, respectively. The excess tax benefits realized have been recorded as increases to additional paid-in capital for the years ended December 31, 2016 and 2015 and are reflected as a financing cash inflow in the accompanying Consolidated Statements of Cash Flows. As a result of the adoption of ASU 2016-09, Compensation—Stock Compensation, the excess tax benefit for the year ended December 31, 2017 has been recorded as a reduction to the current income tax provision and is reflected as an operating cash inflow in the accompanying Consolidated Statement of Cash Flows. Included in deferred income taxes related to continuing operations as of December 31, 2017 are tax benefits for U. S. and nonU. S. net operating loss carryforwards totaling $502 million ($283 million of which the Company does not expect to realize and have corresponding valuation allowances). Certain of the losses can be carried forward indefinitely and others can be carried forward to various dates from 2018 through 2037. In addition, the Company had general business and foreign tax credit carryforwards related to continuing operations of $171 million ($30 million of which the Company does not expect to realize and have corresponding valuation allowances) as of December 31, 2017, which can be carried forward to various dates from 2018 to 2027. In addition, as of December 31, 2017, the Company had $12 million of valuation allowances related to other deferred tax asset balances that are not more likely than not of being realized. As of December 31, 2017, gross unrecognized tax benefits related to continuing operations totaled $737 million ($736 million, net of the impact of $104 million of indirect tax benefits offset by $103 million associated with potential interest and penalties). Incurred Losses and LAE. The following table presents the incurred losses and LAE for the U. S. Reinsurance segment for the periods indicated.
<table><tr><td></td><td colspan="8">Years Ended December 31,</td><td></td></tr><tr><td>(Dollars in millions)</td><td>Current Year</td><td colspan="2">Ratio %/ Pt Change</td><td>Prior Years</td><td colspan="2">Ratio %/ Pt Change</td><td>Total Incurred</td><td colspan="2">Ratio %/ Pt Change</td></tr><tr><td>2015</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$940.6</td><td>48.2%</td><td></td><td>$-123.1</td><td>-6.3%</td><td></td><td>$817.5</td><td>41.9%</td><td></td></tr><tr><td>Catastrophes</td><td>16.7</td><td>0.9%</td><td></td><td>-9.2</td><td>-0.5%</td><td></td><td>7.6</td><td>0.4%</td><td></td></tr><tr><td>Total segment</td><td>$957.4</td><td>49.1%</td><td></td><td>$-132.3</td><td>-6.8%</td><td></td><td>$825.1</td><td>42.3%</td><td></td></tr><tr><td>2014</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$933.3</td><td>47.0%</td><td></td><td>$24.5</td><td>1.2%</td><td></td><td>$957.8</td><td>48.2%</td><td></td></tr><tr><td>Catastrophes</td><td>12.5</td><td>0.6%</td><td></td><td>-15.8</td><td>-0.8%</td><td></td><td>-3.3</td><td>-0.2%</td><td></td></tr><tr><td>Total segment</td><td>$945.8</td><td>47.6%</td><td></td><td>$8.7</td><td>0.4%</td><td></td><td>$954.5</td><td>48.0%</td><td></td></tr><tr><td>2013</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$781.8</td><td>46.7%</td><td></td><td>$-36.7</td><td>-2.2%</td><td></td><td>$745.2</td><td>44.5%</td><td></td></tr><tr><td>Catastrophes</td><td>51.8</td><td>3.1%</td><td></td><td>17.7</td><td>1.1%</td><td></td><td>69.5</td><td>4.2%</td><td></td></tr><tr><td>Total segment</td><td>$833.6</td><td>49.8%</td><td></td><td>$-18.9</td><td>-1.1%</td><td></td><td>$814.7</td><td>48.7%</td><td></td></tr><tr><td>Variance 2015/2014</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$7.3</td><td>1.2</td><td>pts</td><td>$-147.6</td><td>-7.5</td><td>pts</td><td>$-140.3</td><td>-6.3</td><td>pts</td></tr><tr><td>Catastrophes</td><td>4.2</td><td>0.3</td><td>pts</td><td>6.6</td><td>0.3</td><td>pts</td><td>10.9</td><td>0.6</td><td>pts</td></tr><tr><td>Total segment</td><td>$11.6</td><td>1.5</td><td>pts</td><td>$-141.0</td><td>-7.2</td><td>pts</td><td>$-129.4</td><td>-5.7</td><td>pts</td></tr><tr><td>Variance 2014/2013</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Attritional</td><td>$151.5</td><td>0.3</td><td>pts</td><td>$61.2</td><td>3.4</td><td>pts</td><td>$212.6</td><td>3.7</td><td>pts</td></tr><tr><td>Catastrophes</td><td>-39.3</td><td>-2.5</td><td>pts</td><td>-33.5</td><td>-1.9</td><td>pts</td><td>-72.8</td><td>-4.4</td><td>pts</td></tr><tr><td>Total segment</td><td>$112.2</td><td>-2.2</td><td>pts</td><td>$27.7</td><td>1.5</td><td>pts</td><td>$139.9</td><td>-0.7</td><td>pts</td></tr><tr><td colspan="2">(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></table>
Incurred losses decreased by 13.6% to $825.1 million in 2015 compared to $954.5 million in 2014, primarily due to an increase in favorable development of $147.6 million on prior year attritional losses in 2015 compared to 2014 related to treaty property, treaty casualty, marine lines of business and less year over year development on A&E reserves. This favorable development was partially offset by the increase in current year attritional losses of $7.3 million resulting primarily from $14.2 million related to the explosion at the Chinese port of Tianjin. Current year catastrophe losses were $16.7 million in 2015 mainly due to the US storms ($16.2 million). The $12.5 million of current year catastrophe losses in 2014 related to the Japan snowstorm ($7.8 million) and Hurricane Odile ($4.7 million). Incurred losses increased by 17.2% to $954.5 million in 2014 compared to $814.7 million in 2013, primarily due to the increase in current year attritional losses of $151.5 million resulting primarily from the impact of the increase in premiums earned and less favorable development of $61.2 million on prior years’ attritional losses in 2014 compared to 2013, mainly related to an increase in A&E reserves. This increase was partially offset by a decrease in current year catastrophe losses (outlined above) and favorable development of $33.5 million on prior year catastrophe losses in 2014 compared to 2013, mainly related to Superstorm Sandy. The $51.8 million of current year catastrophe losses in 2013 were mainly due to U. S. Storms ($44.8 million), the European floods ($5.0 million) and the Canadian Floods ($2.0 million). Segment Expenses. Commission and brokerage expenses increased by 5.8% to $493.3 million in 2015 compared to $466.3 million in 2014. The variance was primarily due to the impact of changes in the mix of business. Segment other underwriting expenses increased to $50.1 million in 2015 from $45.6 million in 2014. The increase was primarily due to the impact of changes in the mix of business and higher employee benefit costs. |
1,779 | In the year with largest amount of Product revenue, what's the sum of Product revenue and Service and other revenue ? (in million) | higher in the fiscal 2013 period, including about $100 million for higher staffing expenses, about $60 million for higher advertising and other marketing program expenses, and about $23 million for higher share-based compensation expenses. See “Cost of Revenue” and “Operating Expenses” later in this Item 7 for more information. Net income from continuing operations increased 8% in fiscal 2013 compared with fiscal 2012 due to higher operating income and lower interest expense due to the repayment of debt in March 2012. Diluted net income per share from continuing operations for fiscal 2013 increased 8% to $2.72, in line with the increase in net income compared with fiscal 2012. Segment Results The information below is organized in accordance with our three reportable segments. All of our segments operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was approximately 5% of consolidated total net revenue for all periods presented. Segment operating income is segment net revenue less segment cost of revenue and operating expenses. Segment expenses do not include certain costs, such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses, which are not allocated to specific segments. These unallocated costs totaled $890 million in fiscal 2014, $809 million in fiscal 2013, and $724 million in fiscal 2012. Unallocated costs increased in fiscal 2014 compared with fiscal 2013 and in fiscal 2013 compared with fiscal 2012 due to increases in corporate product development and selling and marketing expenses in support of the growth of our businesses and to a lesser extent due to increases in share-based compensation expenses. Segment expenses also do not include amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges. See Note 14 to the financial statements in Item 8 of this Annual Report for reconciliations of total segment operating income to consolidated operating income from continuing operations for each fiscal year presented. We calculate revenue growth rates and segment operating margin figures using dollars in thousands. Those results may vary slightly from figures calculated using the dollars in millions presented. Small Business
<table><tr><td>(Dollars in millions)</td><td>Fiscal2014</td><td>Fiscal2013</td><td>Fiscal2012</td><td>2014-2013% Change</td><td>2013-2012% Change</td></tr><tr><td>Product revenue</td><td>$851</td><td>$849</td><td>$811</td><td></td><td></td></tr><tr><td>Service and other revenue</td><td>1,402</td><td>1,208</td><td>968</td><td></td><td></td></tr><tr><td>Total segment revenue</td><td>$2,253</td><td>$2,057</td><td>$1,779</td><td>10%</td><td>16%</td></tr><tr><td>% of total revenue</td><td>50%</td><td>49%</td><td>47%</td><td></td><td></td></tr><tr><td>Segment operating income</td><td>$843</td><td>$800</td><td>$712</td><td>5%</td><td>13%</td></tr><tr><td>% of related revenue</td><td>37%</td><td>39%</td><td>40%</td><td></td><td></td></tr></table>
Service and other revenue in our Small Business segment is derived primarily from QuickBooks Online and QuickBooks Online Accountant, our hosted financial and business management offerings; QuickBooks Pro Plus, QuickBooks Premier Plus, and QuickBooks Accountant Plus, our subscription offerings; QuickBooks technical support plans; small business payroll services, including Quickbooks Online Payroll, Intuit Online Payroll, Intuit Full Service Payroll, and QuickBooks Assisted Payroll; payment processing services for small businesses; Demandforce; and QuickBase. Product revenue in our Small Business segment is derived primarily from QuickBooks desktop software products, including QuickBooks Pro, QuickBooks Premier, QuickBooks Accountant, and QuickBooks Enterprise Solutions; QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; QuickBooks Point of Sale solutions; ProAdvisor Program subscriptions for the accounting professionals who serve small businesses; and financial supplies. As part of our connected services strategy, over the past several quarters we have been focusing Small Business segment resources on the enhancement and marketing of our QuickBooks Online and QuickBooks desktop subscription offerings. As a result, QuickBooks desktop license units and revenue have been declining as more customers choose our hosted and subscription offerings and we expect this trend to continue. In our payments business we have recently begun focusing resources on core offerings for QuickBooks merchants in support of our small business ecosystem approach. Over the next few quarters we anticipate declining revenue for certain non-QuickBooks payments offerings that may slow overall revenue growth in our payments business. Fiscal 2014 Compared with Fiscal 2013 Small Business segment total net revenue increased $196 million or 10% in fiscal 2014 compared with fiscal 2013. Customer acquisition in our Small Business Online Ecosystem continued to drive Small Business segment revenue growth in fiscal 2014. QuickBooks Online customers grew 40%, online payroll customers grew 25%, and active online payments customers grew 4%. Online payments charge volume was 24% higher in fiscal 2014 compared with fiscal 2013. Annualized recurring revenue (ARR) for our Small Business Online Ecosystem grew 34% in fiscal 2014 compared with fiscal 2013. In our Small Business Desktop Ecosystem, revenue from QuickBooks desktop software licenses declined 9% on 10% lower unit sales while revenue from QuickBooks Enterprise Solutions grew 25% and revenue from QuickBooks Plus subscriptions grew 16% in fiscal 2014. Revenue for certain non-core payments offerings was lower in fiscal 2014. Small Business segment operating income as a percentage of related revenue decreased in fiscal 2014 compared with fiscal 2013. The increase in segment revenue described above was partially offset by $73 million in higher staffing expenses due to an increase in headcount and $35 million in higher advertising and other marketing program expenses. Fiscal 2013 Compared with Fiscal 2012 Small Business segment total net revenue increased $278 million or 16% in fiscal 2013 compared with fiscal 2012. When adjusted to exclude revenue from Demandforce, which we acquired in May 2012, Small Business segment revenue was 12% higher in fiscal 2013. Customer acquisition in our Small Business Online Ecosystem drove organic Small Business segment revenue growth in fiscal 2013. QuickBooks Online customers grew 28%, online payroll customers grew 18%, and active online payments customers grew 21%. Online payments charge volume was 37% higher in fiscal 2013 compared with fiscal 2012. In our Small Business Desktop Ecosystem, revenue from QuickBooks desktop software licenses was flat on 6% lower unit sales while revenue from QuickBooks Enterprise Solutions grew 10% and revenue from QuickBooks Plus subscriptions more than doubled in fiscal 2013. Small Business segment operating income as a percentage of related revenue decreased slightly in fiscal 2013 compared with fiscal 2012. The increase in segment revenue described above was partially offset by higher segment costs and expenses that included costs and expenses for Demandforce. Fiscal 2013 staffing expenses were about $100 million higher, driven by an increase in headcount. Advertising and other marketing program expenses also increased. Consumer
<table><tr><td>(Dollars in millions)</td><td>Fiscal2014</td><td>Fiscal2013</td><td>Fiscal2012</td><td>2014-2013% Change</td><td>2013-2012% Change</td></tr><tr><td>Product revenue</td><td>$309</td><td>$324</td><td>$334</td><td></td><td></td></tr><tr><td>Service and other revenue</td><td>1,522</td><td>1,384</td><td>1,307</td><td></td><td></td></tr><tr><td>Total segment revenue</td><td>$1,831</td><td>$1,708</td><td>$1,641</td><td>7%</td><td>4%</td></tr><tr><td>% of total revenue</td><td>41%</td><td>41%</td><td>43%</td><td></td><td></td></tr><tr><td>Segment operating income</td><td>$1,139</td><td>$1,035</td><td>$965</td><td>10%</td><td>7%</td></tr><tr><td>% of related revenue</td><td>62%</td><td>61%</td><td>59%</td><td></td><td></td></tr></table>
Our Consumer segment includes our Consumer Tax and Consumer Ecosystem product lines. Consumer Tax service and other revenue is derived primarily from TurboTax Online tax return preparation services and electronic tax filing services. Consumer Tax product revenue is derived primarily from TurboTax desktop tax return preparation software. Consumer Ecosystem product revenue is derived primarily from Quicken desktop personal finance software products. Consumer Ecosystem service and other revenue is derived primarily from mobile and online consumer finance offerings as well as from online lead generation fees from our Mint personal finance offerings. 2. Fair Value Measurements Fair Value Hierarchy The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability. The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows: ? Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. ? Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities: quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities. ? Level 3 uses one or more unobservable inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair values are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.
<table><tr><td></td><td colspan="4">At July 31, 2014</td><td colspan="4">At July 31, 2013</td></tr><tr><td>(In millions)</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>TotalFair Value</td><td>Level 1</td><td>Level 2</td><td>Level 3</td><td>TotalFair Value</td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash equivalents, primarily money market funds</td><td>$652</td><td>$—</td><td>$—</td><td>$652</td><td>$917</td><td>$—</td><td>$—</td><td>$917</td></tr><tr><td>Available-for-sale debt securities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Municipal bonds</td><td>—</td><td>701</td><td>—</td><td>701</td><td>—</td><td>489</td><td>—</td><td>489</td></tr><tr><td>Municipal auction rate securities</td><td>—</td><td>—</td><td>21</td><td>21</td><td>—</td><td>—</td><td>33</td><td>33</td></tr><tr><td>Corporate notes</td><td>—</td><td>466</td><td>—</td><td>466</td><td>—</td><td>269</td><td>—</td><td>269</td></tr><tr><td>U.S. agency securities</td><td>—</td><td>42</td><td>—</td><td>42</td><td>—</td><td>69</td><td>—</td><td>69</td></tr><tr><td>Available-for-sale corporate equity securities</td><td>—</td><td>—</td><td>—</td><td>—</td><td>33</td><td>—</td><td>—</td><td>33</td></tr><tr><td>Total available-for-sale securities</td><td>—</td><td>1,209</td><td>21</td><td>1,230</td><td>33</td><td>827</td><td>33</td><td>893</td></tr><tr><td>Total assets measured at fair value on a recurring basis</td><td>$652</td><td>$1,209</td><td>$21</td><td>$1,882</td><td>$950</td><td>$827</td><td>$33</td><td>$1,810</td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Senior notes -1</td><td>$—</td><td>$556</td><td>$—</td><td>$556</td><td>$—</td><td>$560</td><td>$—</td><td>$560</td></tr></table>
(1) Carrying value on our balance sheets at July 31, 2014 was $499 million and at July 31, 2013 was $499 million. See Note 9. Table of Contents VALERO ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Commodity Price Risk We are exposed to market risks related to the volatility in the price of crude oil, refined products (primarily gasoline and distillate), grain (primarily corn), and natural gas used in our operations. To reduce the impact of price volatility on our results of operations and cash flows, we use commodity derivative instruments, including futures, swaps, and options. We use the futures markets for the available liquidity, which provides greater flexibility in transacting our hedging and trading operations. We use swaps primarily to manage our price exposure. Our positions in commodity derivative instruments are monitored and managed on a daily basis by a risk control group to ensure compliance with our stated risk management policy that has been approved by our board of directors. For risk management purposes, we use fair value hedges, cash flow hedges, and economic hedges. In addition to the use of derivative instruments to manage commodity price risk, we also enter into certain commodity derivative instruments for trading purposes. Our objective for entering into each type of hedge or trading derivative is described below. Fair Value Hedges Fair value hedges are used to hedge price volatility in certain refining inventories and firm commitments to purchase inventories. The level of activity for our fair value hedges is based on the level of our operating inventories, and generally represents the amount by which our inventories differ from our previous year-end LIFO inventory levels. As of December 31, 2012, we had the following outstanding commodity derivative instruments that were entered into to hedge crude oil and refined product inventories and commodity derivative instruments related to the physical purchase of crude oil and refined products at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels). |
210 | What is the amount of Commercial and Commercial realestate in the years with the least Commercial for Gross Charge-offs ? (in million) | Tobacco-Related Cases Set for Trial: As of January 29, 2018, three Engle progeny cases are set for trial through March 31, 2018. There are no other individual smoking and health cases against PM USA set for trial during this period. Cases against other companies in the tobacco industry may be scheduled for trial during this period. Trial dates are subject to change. Trial Results: Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 63 smoking and health, “Lights/Ultra Lights” and health care cost recovery cases in which PM USA was a defendant. Verdicts in favor of PM USA and other defendants were returned in 42 of the 63 cases. These 42 cases were tried in Alaska (1), California (7), Connecticut (1), Florida (10), Louisiana (1), Massachusetts (2), Mississippi (1), Missouri (4), New Hampshire (1), New Jersey (1), New York (5), Ohio (2), Pennsylvania (1), Rhode Island (1), Tennessee (2) and West Virginia (2). A motion for a new trial was granted in one of the cases in Florida and in the case in Alaska. In the Alaska case (Hunter), the trial court withdrew its order for a new trial upon PM USA’s motion for reconsideration. In December 2015, the Alaska Supreme Court reversed the trial court decision and remanded the case with directions for the trial court to reassess whether to grant a new trial. In March 2016, the trial court granted a new trial and PM USA filed a petition for review of that order with the Alaska Supreme Court, which the court denied in July 2016. The retrial began in October 2016. In November 2016, the court declared a mistrial after the jury failed to reach a verdict. The plaintiff subsequently moved for a new trial, which is scheduled to begin April 9, 2018. See Types and Number of Cases above for a discussion of the trial results in In re: Tobacco Litigation (West Virginia consolidated cases). Of the 21 non-Engle progeny cases in which verdicts were returned in favor of plaintiffs, 18 have reached final resolution. As of January 29, 2018, 116 state and federal Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court’s Engle decision as follows: 61 verdicts were returned in favor of plaintiffs; 45 verdicts were returned in favor of PM USA. Eight verdicts that were initially returned in favor of plaintiff were reversed post-trial or on appeal and remain pending and two verdicts in favor of PM USA were reversed for a new trial. See Smoking and Health Litigation - Engle Progeny Trial Court Results below for a discussion of these verdicts. Judgments Paid and Provisions for Tobacco and Health Litigation Items (Including Engle Progeny Litigation): After exhausting all appeals in those cases resulting in adverse verdicts associated with tobacco-related litigation, since October 2004, PM USA has paid in the aggregate judgments and settlements (including related costs and fees) totaling approximately $490 million and interest totaling approximately $184 million as of December 31, 2017. These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $99 million, interest totaling approximately $22 million and payment of approximately $43 million in connection with the Federal Engle Agreement, discussed below. The changes in Altria Group, Inc. ’s accrued liability for tobacco and health litigation items, including related interest costs, for the periods specified below are as follows:
<table><tr><td>(in millions)</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Accrued liability for tobacco and health litigation items at beginning of year</td><td>$47</td><td>$132</td><td>$39</td></tr><tr><td>Pre-tax charges for:</td><td></td><td></td><td></td></tr><tr><td>Tobacco and health judgments</td><td>72</td><td>21</td><td>84</td></tr><tr><td>Related interest costs</td><td>8</td><td>7</td><td>23</td></tr><tr><td>Agreement to resolve federalEngleprogeny cases</td><td>—</td><td>—</td><td>43</td></tr><tr><td>Agreement to resolveAspinallincluding relatedinterest costs</td><td>—</td><td>32</td><td>—</td></tr><tr><td>Agreement to resolveMiner</td><td>—</td><td>45</td><td>—</td></tr><tr><td>Payments</td><td>-21</td><td>-190</td><td>-57</td></tr><tr><td>Accrued liability for tobacco and health litigation items atend of year</td><td>$106</td><td>$47</td><td>$132</td></tr></table>
The accrued liability for tobacco and health litigation items, including related interest costs, was included in liabilities on Altria Group, Inc. ’s consolidated balance sheets. Pre-tax charges for tobacco and health judgments, the agreement to resolve federal Engle progeny cases and the agreements to resolve the Aspinall and Miner “lights” class action cases (excluding related interest costs of approximately $10 million in Aspinall) were included in marketing, administration and research costs on Altria Group, Inc. ’s consolidated statements of earnings. Pre-tax charges for related interest costs were included in interest and other debt expense, net on Altria Group, Inc. ’s consolidated statements of earnings. Security for Judgments: To obtain stays of judgments pending current appeals, as of December 31, 2017, PM USA has posted various forms of security totaling approximately $61 million, the majority of which has been collateralized with cash deposits that are included in assets on the consolidated balance sheet. Information about stock options at December 31, 2007 follows:
<table><tr><td></td><td>Options Outstanding</td><td>Options Exercisable(a)</td></tr><tr><td>December 31, 2007Shares in thousandsRange of exercise prices</td><td>Shares</td><td>Weighted- averageexercise price</td><td>Weighted-average remaining contractual life (in years)</td><td>Shares</td><td>Weighted-averageexercise price</td></tr><tr><td>$37.43 – $46.99</td><td>1,444</td><td>$43.05</td><td>4.0</td><td>1,444</td><td>$43.05</td></tr><tr><td>47.00 – 56.99</td><td>3,634</td><td>53.43</td><td>5.4</td><td>3,022</td><td>53.40</td></tr><tr><td>57.00 – 66.99</td><td>3,255</td><td>60.32</td><td>5.2</td><td>2,569</td><td>58.96</td></tr><tr><td>67.00 – 76.23</td><td>5,993</td><td>73.03</td><td>5.5</td><td>3,461</td><td>73.45</td></tr><tr><td>Total</td><td>14,326</td><td>$62.15</td><td>5.3</td><td>10,496</td><td>$59.95</td></tr></table>
(a) The weighted-average remaining contractual life was approximately 4.2 years. At December 31, 2007, there were approximately 13,788,000 options in total that were vested and are expected to vest. The weighted-average exercise price of such options was $62.07 per share, the weighted-average remaining contractual life was approximately 5.2 years, and the aggregate intrinsic value at December 31, 2007 was approximately $92 million. Stock options granted in 2005 include options for 30,000 shares that were granted to non-employee directors that year. No such options were granted in 2006 or 2007. Awards granted to non-employee directors in 2007 include 20,944 deferred stock units awarded under the Outside Directors Deferred Stock Unit Plan. A deferred stock unit is a phantom share of our common stock, which requires liability accounting treatment under SFAS 123R until such awards are paid to the participants as cash. As there are no vestings or service requirements on these awards, total compensation expense is recognized in full on all awarded units on the date of grant. The weighted-average grant-date fair value of options granted in 2007, 2006 and 2005 was $11.37, $10.75 and $9.83 per option, respectively. To determine stock-based compensation expense under SFAS 123R, the grant-date fair value is applied to the options granted with a reduction made for estimated forfeitures. At December 31, 2006 and 2005 options for 10,743,000 and 13,582,000 shares of common stock, respectively, were exercisable at a weighted-average price of $58.38 and $56.58, respectively. The total intrinsic value of options exercised during 2007, 2006 and 2005 was $52 million, $111 million and $31 million, respectively. At December 31, 2007 the aggregate intrinsic value of all options outstanding and exercisable was $94 million and $87 million, respectively. Cash received from option exercises under all Incentive Plans for 2007, 2006 and 2005 was approximately $111 million, $233 million and $98 million, respectively. The actual tax benefit realized for tax deduction purposes from option exercises under all Incentive Plans for 2007, 2006 and 2005 was approximately $39 million, $82 million and $34 million, respectively. There were no options granted in excess of market value in 2007, 2006 or 2005. Shares of common stock available during the next year for the granting of options and other awards under the Incentive Plans were 40,116,726 at December 31, 2007. Total shares of PNC common stock authorized for future issuance under equity compensation plans totaled 41,787,400 shares at December 31, 2007, which includes shares available for issuance under the Incentive Plans, the Employee Stock Purchase Plan as described below, and a director plan. During 2007, we issued approximately 2.1 million shares from treasury stock in connection with stock option exercise activity. As with past exercise activity, we intend to utilize treasury stock for future stock option exercises. As discussed in Note 1 Accounting Policies, we adopted the fair value recognition provisions of SFAS 123 prospectively to all employee awards including stock options granted, modified or settled after January 1, 2003. As permitted under SFAS 123, we recognized compensation expense for stock options on a straight-line basis over the pro rata vesting period. Total compensation expense recognized related to PNC stock options in 2007 was $29 million compared with $31 million in 2006 and $29 million in 2005. PRO FORMA EFFECTS A table is included in Note 1 Accounting Policies that sets forth pro forma net income and basic and diluted earnings per share as if compensation expense had been recognized under SFAS 123 and 123R, as amended, for stock options for 2005. For purposes of computing stock option expense and 2005 pro forma results, we estimated the fair value of stock options using the Black-Scholes option pricing model. The model requires the use of numerous assumptions, many of which are very subjective. Therefore, the 2005 pro forma results are estimates of results of operations as if compensation expense had been recognized for all stock-based compensation awards and are not indicative of the impact on future periods. See Note 1 Accounting Policies and Note 3 Asset Quality in the Notes To Consolidated Financial Statements in Item 8 of this Report for further information on certain key asset quality indicators that we use to evaluate our portfolios and establish the allowances. Table 23: Allowance for Loan and Lease Losses
<table><tr><td>Dollars in millions</td><td>2017</td><td>2016</td></tr><tr><td>January 1</td><td>$2,589</td><td>$2,727</td></tr><tr><td>Total net charge-offs</td><td>-457</td><td>-543</td></tr><tr><td>Provision for credit losses</td><td>441</td><td>433</td></tr><tr><td>Net decrease / (increase) in allowance forunfunded loan commitments andletters of credit</td><td>4</td><td>-40</td></tr><tr><td>Other</td><td>34</td><td>12</td></tr><tr><td>December 31</td><td>$2,611</td><td>$2,589</td></tr><tr><td>Net charge-offs to average loans (for theyear ended)</td><td>.21%</td><td>.26%</td></tr><tr><td>Allowance for loan and lease losses tototal loans</td><td>1.18%</td><td>1.23%</td></tr><tr><td>Commercial lending net charge-offs</td><td>$-105</td><td>$-185</td></tr><tr><td>Consumer lending net charge-offs</td><td>-352</td><td>-358</td></tr><tr><td>Total net charge-offs</td><td>$-457</td><td>$-543</td></tr><tr><td>Net charge-offs to average loans (for theyear ended)</td><td></td><td></td></tr><tr><td>Commercial lending</td><td>.07%</td><td>.14%</td></tr><tr><td>Consumer lending</td><td>.49%</td><td>.50%</td></tr></table>
At December 31, 2017, total ALLL to total nonperforming loans was 140%. The comparable amount for December 31, 2016 was 121%. These ratios are 102% and 89%, respectively, when excluding the $.7 billion of ALLL at both December 31, 2017 and December 31, 2016 allocated to consumer loans and lines of credit not secured by residential real estate and purchased impaired loans. We have excluded these amounts from ALLL in these ratios as these asset classes are not included in nonperforming loans. See Table 18 within this Credit Risk Management section for additional information. The ALLL balance increases or decreases across periods in relation to fluctuating risk factors, including asset quality trends, net charge-offs and changes in aggregate portfolio balances. During 2017, overall credit quality remained stable, which resulted in an essentially flat ALLL balance as of December 31, 2017 compared to December 31, 2016. The following table summarizes our loan charge-offs and recoveries. Table 24: Loan Charge-Offs and Recoveries
<table><tr><td>Year ended December 31Dollars in millions</td><td>Gross Charge-offs</td><td>Recoveries</td><td>Net Charge-offs / (Recoveries)</td><td>Percent of Average Loans</td></tr><tr><td>2017</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$186</td><td>$81</td><td>$105</td><td>.10%</td></tr><tr><td>Commercial realestate</td><td>24</td><td>28</td><td>-4</td><td>-.01%</td></tr><tr><td>Equipmentlease financing</td><td>11</td><td>7</td><td>4</td><td>.05%</td></tr><tr><td>Home equity</td><td>123</td><td>91</td><td>32</td><td>.11%</td></tr><tr><td>Residential realestate</td><td>9</td><td>18</td><td>-9</td><td>-.06%</td></tr><tr><td>Credit card</td><td>182</td><td>21</td><td>161</td><td>3.06%</td></tr><tr><td>Other consumer</td><td>251</td><td>83</td><td>168</td><td>.77%</td></tr><tr><td>Total</td><td>$786</td><td>$329</td><td>$457</td><td>.21%</td></tr><tr><td>2016</td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>$332</td><td>$117</td><td>$215</td><td>.21%</td></tr><tr><td>Commercial realestate</td><td>26</td><td>51</td><td>-25</td><td>-.09%</td></tr><tr><td>Equipment leasefinancing</td><td>5</td><td>10</td><td>-5</td><td>-.07%</td></tr><tr><td>Home equity</td><td>143</td><td>84</td><td>59</td><td>.19%</td></tr><tr><td>Residential realestate</td><td>14</td><td>9</td><td>5</td><td>.03%</td></tr><tr><td>Credit card</td><td>161</td><td>19</td><td>142</td><td>2.90%</td></tr><tr><td>Other consumer</td><td>205</td><td>53</td><td>152</td><td>.70%</td></tr><tr><td>Total</td><td>$886</td><td>$343</td><td>$543</td><td>.26%</td></tr></table>
See Note 1 Accounting Policies and Note 4 Allowance for Loan and Lease Losses in the Notes To Consolidated Financial Statements in Item 8 of this Report for additional information on the ALLL. |
1,966 | What's the total value of all Value (In millions) that are in the range of 400 and 1000 in 2011? (in million) | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U. S. Acquisitions—During the year ended December 31, 2010, the Company acquired 548 towers through multiple acquisitions in the United States for an aggregate purchase price of $329.3 million and contingent consideration of approximately $4.6 million. The acquisition of these towers is consistent with the Company’s strategy to expand in selected geographic areas and have been accounted for as business combinations. The following table summarizes the preliminary allocation of the aggregate purchase consideration paid and the amounts of assets acquired and liabilities assumed based on the estimated fair value of the acquired assets and assumed liabilities at the date of acquisition (in thousands):
<table><tr><td></td><td>Purchase Price Allocation</td></tr><tr><td>Non-current assets</td><td>$442</td></tr><tr><td>Property and equipment</td><td>64,564</td></tr><tr><td>Intangible assets -1</td><td>260,898</td></tr><tr><td>Current liabilities</td><td>-360</td></tr><tr><td>Long-term liabilities</td><td>-7,802</td></tr><tr><td>Fair value of net assets acquired</td><td>$317,742</td></tr><tr><td>Goodwill -2</td><td>16,131</td></tr></table>
(1) Consists of customer relationships of approximately $205.4 million and network location intangibles of approximately $55.5 million. The customer relationships and network location intangibles are being amortized on a straight-line basis over a period of 20 years. (2) Goodwill is expected to be deductible for income tax purposes. The goodwill was allocated to the domestic rental and management segment. The allocation of the purchase price will be finalized upon completion of analyses of the fair value of the assets acquired and liabilities assumed. South Africa Acquisition—On November 4, 2010, the Company entered into a definitive agreement with Cell C (Pty) Limited to purchase up to approximately 1,400 existing towers, and up to 1,800 additional towers that either are under construction or will be constructed, for an aggregate purchase price of up to approximately $430 million. The Company anticipates closing the purchase of up to 1,400 existing towers during 2011, subject to customary closing conditions. Other Transactions Coltel Transaction—On September 3, 2010, the Company entered into a definitive agreement to purchase the exclusive use rights for towers in Colombia from Colombia Telecomunicaciones S. A. E. S. P. (“Coltel”) until 2023, when ownership of the towers will transfer to the Company at no additional cost. Pursuant to that agreement, the Company completed the purchase of exclusive use rights for 508 towers for an aggregate purchase price of $86.8 million during the year ended December 31, 2010. The Company expects to complete the purchase of the exclusive use rights for an additional 180 towers by the end of 2011, subject to customary closing conditions. The transaction has been accounted for as a capital lease, with the aggregated purchase price being allocated to property and equipment and non-current assets. Joint Venture with MTN Group—On December 6, 2010, the Company entered into a definitive agreement with MTN Group Limited (“MTN Group”) to establish a joint venture in Ghana (“TowerCo Ghana”). TowerCo Ghana, which will be managed by the Company, will be owned by a holding company of which a wholly owned American Tower subsidiary will hold a 51% share and a wholly owned MTN Group subsidiary (“MTN Ghana”) will hold a 49% share. The transaction involves the sale of up to 1,876 of MTN Ghana’s existing sites to D. R. HORTON, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) its homes constructed in these markets and of the warranty claims received in these markets as well as testing of specific homes. Through September 30, 2010, the Company has spent approximately $4.9 million to remediate these homes. While the Company will seek reimbursement for these remediation costs from various sources, it has not recorded a receivable for potential recoveries as of September 30, 2010. The Company is continuing its investigation to determine if there are additional homes with the Chinese Drywall in these markets, which if found, would likely require the Company to further increase its warranty reserve for this matter in the future. The remaining costs accrued to complete this remediation are based on the Company’s estimate of remaining repair costs. If the actual costs to remediate the homes differ from the estimated costs, the Company may revise its warranty estimate. As of September 30, 2010, the Company has been named as a defendant in several lawsuits in Louisiana and Florida pertaining to Chinese Drywall. As these actions are still in their early stages, the Company is unable to express an opinion as to the amount of damages, if any, beyond what has been reserved for repair as discussed above. Changes in the Company’s warranty liability during fiscal 2010 and 2009 were as follows:
<table><tr><td></td><td colspan="2">September 30,</td></tr><tr><td></td><td>2010</td><td>2009</td></tr><tr><td></td><td colspan="2">(In millions)</td></tr><tr><td>Warranty liability, beginning of year</td><td>$59.6</td><td>$83.4</td></tr><tr><td>Warranties issued</td><td>19.5</td><td>16.8</td></tr><tr><td>Changes in liability for pre-existing warranties</td><td>-5.0</td><td>-16.0</td></tr><tr><td>Settlements made</td><td>-27.9</td><td>-24.6</td></tr><tr><td>Warranty liability, end of year</td><td>$46.2</td><td>$59.6</td></tr></table>
Insurance and Legal Claims The Company has been named as defendant in various claims, complaints and other legal actions including construction defect claims on closed homes and other claims and lawsuits incurred in the ordinary course of business, including employment matters, personal injury claims, land development issues, contract disputes and claims related to its mortgage activities. The Company has established reserves for these contingencies, based on the expected costs of the claims. The Company’s estimates of such reserves are based on the facts and circumstances of individual pending claims and historical data and trends, including costs relative to revenues, home closings and product types, and include estimates of the costs of construction defect claims incurred but not yet reported. These reserve estimates are subject to ongoing revision as the circumstances of individual pending claims and historical data and trends change. Adjustments to estimated reserves are recorded in the accounting period in which the change in estimate occurs. The Company’s liabilities for these items were $571.3 million and $534.0 million at September 30, 2010 and 2009, respectively, and are included in homebuilding accrued expenses and other liabilities in the consolidated balance sheets. Related to the contingencies for construction defect claims and estimates of construction defect claims incurred but not yet reported, and other legal claims and lawsuits incurred in the ordinary course of business, the Company estimates and records insurance receivables for these matters under applicable insurance policies when recovery is probable. Additionally, the Company may have the ability to recover a portion of its legal expenses from its subcontractors when the Company has been named as an additional insured on their insurance policies. Estimates of the Company’s insurance receivables related to these matters totaled $251.5 million and $234.6 million at September 30, 2010 and 2009, respectively, and are included in homebuilding other assets in the consolidated balance sheets. Expenses related to these items were approximately $43.2 million, $58.3 million and $53.8 million in fiscal 2010, 2009 and 2008, respectively. Management believes that, while the outcome of such contingencies cannot be predicted with certainty, the liabilities arising from these matters will not have a material adverse effect on the Company’s consolidated The average price of our net sales orders in 2011 was $214,000, an increase of 3% from the $207,000 average in 2010. The largest percentage increases were in our Southwest and West regions and were primarily due to opening new communities and adjusting our product mix, with higher priced communities representing more of our sales. Our annual sales order cancellation rate was 27% in fiscal 2011, compared to 26% in fiscal 2010. These cancellation rates were above historical levels, reflecting the challenges in most of our homebuilding markets.
<table><tr><td></td><td colspan="9">Sales Order Backlog As of September 30,</td></tr><tr><td></td><td colspan="3">Homes in Backlog</td><td colspan="3">Value (In millions)</td><td colspan="3">Average Selling Price</td></tr><tr><td></td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td></tr><tr><td>East</td><td>606</td><td>472</td><td>28%</td><td>$147.6</td><td>$103.4</td><td>43%</td><td>$243,600</td><td>$219,100</td><td>11%</td></tr><tr><td>Midwest</td><td>288</td><td>247</td><td>17%</td><td>80.6</td><td>70.1</td><td>15%</td><td>279,900</td><td>283,800</td><td>-1%</td></tr><tr><td>Southeast</td><td>1,285</td><td>812</td><td>58%</td><td>246.9</td><td>162.5</td><td>52%</td><td>192,100</td><td>200,100</td><td>-4%</td></tr><tr><td>South Central</td><td>1,710</td><td>1,691</td><td>1%</td><td>309.5</td><td>297.3</td><td>4%</td><td>181,000</td><td>175,800</td><td>3%</td></tr><tr><td>Southwest</td><td>426</td><td>405</td><td>5%</td><td>76.6</td><td>71.9</td><td>7%</td><td>179,800</td><td>177,500</td><td>1%</td></tr><tr><td>West</td><td>539</td><td>501</td><td>8%</td><td>175.0</td><td>145.6</td><td>20%</td><td>324,700</td><td>290,600</td><td>12%</td></tr><tr><td></td><td>4,854</td><td>4,128</td><td>18%</td><td>$1,036.2</td><td>$850.8</td><td>22%</td><td>$213,500</td><td>$206,100</td><td>4%</td></tr></table>
Sales Order Backlog Our homes in backlog at September 30, 2011 increased 18% from the prior year, with significant increases in our East, Midwest and Southeast regions. The number of homes in backlog in these regions benefited from more active communities and improved third and fourth quarter sales as compared with the same periods of the prior year. Homes Closed and Home Sales Revenue
<table><tr><td></td><td colspan="9">Homes Closed and Home Sales Revenue Fiscal Year Ended September 30,</td></tr><tr><td></td><td colspan="3">Homes Closed</td><td colspan="3">Value (In millions)</td><td colspan="3">Average Selling Price</td></tr><tr><td></td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td></tr><tr><td>East</td><td>1,932</td><td>2,114</td><td>-9%</td><td>$438.4</td><td>$492.2</td><td>-11%</td><td>$226,900</td><td>$232,800</td><td>-3%</td></tr><tr><td>Midwest</td><td>964</td><td>1,187</td><td>-19%</td><td>261.5</td><td>330.9</td><td>-21%</td><td>271,300</td><td>278,800</td><td>-3%</td></tr><tr><td>Southeast</td><td>3,546</td><td>4,049</td><td>-12%</td><td>691.8</td><td>745.2</td><td>-7%</td><td>195,100</td><td>184,000</td><td>6%</td></tr><tr><td>South Central</td><td>6,150</td><td>8,046</td><td>-24%</td><td>1,080.0</td><td>1,378.8</td><td>-22%</td><td>175,600</td><td>171,400</td><td>2%</td></tr><tr><td>Southwest</td><td>1,263</td><td>1,872</td><td>-33%</td><td>234.8</td><td>329.7</td><td>-29%</td><td>185,900</td><td>176,100</td><td>6%</td></tr><tr><td>West</td><td>2,840</td><td>3,607</td><td>-21%</td><td>835.8</td><td>1,025.5</td><td>-18%</td><td>294,300</td><td>284,300</td><td>4%</td></tr><tr><td></td><td>16,695</td><td>20,875</td><td>-20%</td><td>$3,542.3</td><td>$4,302.3</td><td>-18%</td><td>$212,200</td><td>$206,100</td><td>3%</td></tr></table>
Home Sales Revenue Revenues from home sales decreased 18%, to $3,542.3 million (16,695 homes closed) in 2011 from $4,302.3 million (20,875 homes closed) in 2010. The average selling price of homes closed during 2011 was $212,200, up 3% from the $206,100 average in 2010 which reflected a change in product mix rather than broad price appreciation. During fiscal 2011, home sales revenues decreased in all of our market regions, resulting from decreases in the number of homes closed. The number of homes closed in fiscal 2011 decreased 20% due to decreases in all of our market regions. The federal homebuyer tax credit helped stimulate demand for new homes during fiscal 2010 and following its expiration we experienced a significant decline in demand for our homes that extended into fiscal 2011. D. R. HORTON, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 75 Effective August 1, 2017, the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt securities effective through July 31, 2018. All of the $500 million authorization was remaining at September 30, 2017. Financial Services: The Company’s mortgage subsidiary, DHI Mortgage, has a mortgage repurchase facility that is accounted for as a secured financing. The mortgage repurchase facility provides financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to the counterparties against the transfer of funds by the counterparties, thereby becoming purchased loans. DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third-party purchasers in the secondary market or within specified time frames from 45 to 60 days in accordance with the terms of the mortgage repurchase facility. In February 2017, the mortgage repurchase facility was amended to increase its capacity to $600 million and extend its maturity date to February 23, 2018. The capacity of the facility increases, without requiring additional commitments, to $725 million for approximately 30 days at each quarter end and to $800 million for approximately 45 days at fiscal year end. The capacity can also be increased to $1.0 billion subject to the availability of additional commitments. As of September 30, 2017, $540.1 million of mortgage loans held for sale with a collateral value of $520.0 million were pledged under the mortgage repurchase facility. As a result of advance paydowns totaling $100.0 million, DHI Mortgage had an obligation of $420.0 million outstanding under the mortgage repurchase facility at September 30, 2017 at a 3.3% annual interest rate. The mortgage repurchase facility is not guaranteed by D. R. Horton, Inc. or any of the subsidiaries that guarantee the Company’s homebuilding debt. The facility contains financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable ratio of debt to tangible net worth and its minimum required liquidity. These covenants are measured and reported to the lenders monthly. At September 30, 2017, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. In the past, DHI Mortgage has been able to renew or extend its mortgage credit facility at a sufficient capacity and on satisfactory terms prior to its maturity and obtain temporary additional commitments through amendments to the credit facility during periods of higher than normal volumes of mortgages held for sale. The liquidity of the Company’s financial services business depends upon its continued ability to renew and extend the mortgage repurchase facility or to obtain other additional financing in sufficient capacities. NOTE E – CAPITALIZED INTEREST The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the years ended September 30, 2017, 2016 and 2015. |
3.45 | What was the average value of theRisk-free interest rate in the years where Expected volatility is positive? | THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Management’s Discussion and Analysis Investing & Lending Investing & Lending includes our investing activities and the origination of loans, including our relationship lending activities, to provide financing to clients. These investments and loans are typically longer-term in nature. We make investments, some of which are consolidated, including through our merchant banking business and our special situations group, in debt securities and loans, public and private equity securities, infrastructure and real estate entities. Some of these investments are made indirectly through funds that we manage. We also make unsecured and secured loans to retail clients through our digital platforms, Marcus and Goldman Sachs Private Bank Select (GS Select), respectively. The table below presents the operating results of our Investing & Lending segment.
<table><tr><td></td><td>Year Ended December</td></tr><tr><td><i>$ in millions</i></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Equity securities</td><td>$4,578</td><td>$2,573</td><td>$3,781</td></tr><tr><td>Debt securities and loans</td><td>2,003</td><td>1,507</td><td>1,655</td></tr><tr><td>Total net revenues</td><td>6,581</td><td>4,080</td><td>5,436</td></tr><tr><td>Operating expenses</td><td>2,796</td><td>2,386</td><td>2,402</td></tr><tr><td>Pre-taxearnings</td><td>$3,785</td><td>$1,694</td><td>$3,034</td></tr></table>
Operating Environment. During 2017, generally higher global equity prices and tighter credit spreads contributed to a favorable environment for our equity and debt investments. Results also reflected net gains from companyspecific events, including sales, and corporate performance. This environment contrasts with 2016, where, in the first quarter of 2016, market conditions were difficult and corporate performance, particularly in the energy sector, was impacted by a challenging macroeconomic environment. However, market conditions improved during the rest of 2016 as macroeconomic concerns moderated. If macroeconomic concerns negatively affect company-specific events or corporate performance, or if global equity markets decline or credit spreads widen, net revenues in Investing & Lending would likely be negatively impacted.2017 versus 2016. Net revenues in Investing & Lending were $6.58 billion for 2017, 61% higher than 2016. Net revenues in equity securities were $4.58 billion, including $3.82 billion of net gains from private equities and $762 million in net gains from public equities. Net revenues in equity securities were 78% higher than 2016, primarily reflecting a significant increase in net gains from private equities, which were positively impacted by companyspecific events and corporate performance. In addition, net gains from public equities were significantly higher, as global equity prices increased during the year. Of the $4.58 billion of net revenues in equity securities, approximately 60% was driven by net gains from company-specific events, such as sales, and public equities. Net revenues in debt securities and loans were $2.00 billion, 33% higher than 2016, reflecting significantly higher net interest income (2017 included approximately $1.80 billion of net interest income). Net revenues in debt securities and loans for 2017 also included an impairment of approximately $130 million on a secured loan. Operating expenses were $2.80 billion for 2017, 17% higher than 2016, due to increased compensation and benefits expenses, reflecting higher net revenues, increased expenses related to consolidated investments, and increased expenses related to Marcus. Pre-tax earnings were $3.79 billion in 2017 compared with $1.69 billion in 2016.2016 versus 2015. Net revenues in Investing & Lending were $4.08 billion for 2016, 25% lower than 2015. Net revenues in equity securities were $2.57 billion, including $2.17 billion of net gains from private equities and $402 million in net gains from public equities. Net revenues in equity securities were 32% lower than 2015, primarily reflecting a significant decrease in net gains from private equities, driven by company-specific events and corporate performance. Net revenues in debt securities and loans were $1.51 billion, 9% lower than 2015, reflecting significantly lower net revenues related to relationship lending activities, due to the impact of changes in credit spreads on economic hedges. Losses related to these hedges were $596 million in 2016, compared with gains of $329 million in 2015. This decrease was partially offset by higher net gains from investments in debt instruments and higher net interest income. See Note 9 to the consolidated financial statements for further information about economic hedges related to our relationship lending activities. Operating expenses were $2.39 billion for 2016, essentially unchanged compared with 2015. Pre-tax earnings were $1.69 billion in 2016, 44% lower than 2015. the 2006 Plan and the 1997 Plan generally vest over four years and expire no later than ten years from the date of grant. For restricted stock awards issued under the 2006 Plan and the 1997 Plan, stock certificates are issued at the time of grant and recipients have dividend and voting rights. In general, these grants vest over three years. For deferred stock awards issued under the 2006 Plan and the 1997 Plan, no stock is issued at the time of grant. Generally, these grants vest over two-, three- or four-year periods. Performance awards granted under the 2006 Plan and the 1997 Plan are earned over a performance period based on achievement of goals, generally over twoto three-year periods. Payment for performance awards is made in cash or in shares of our common stock equal to its fair market value per share, based on certain financial ratios, after the conclusion of each performance period. We record compensation expense, equal to the estimated fair value of the options on the grant date, on a straight-line basis over the options’ vesting periods. We use a Black-Scholes option-pricing model to estimate the fair value of the options granted. The weighted-average assumptions used in connection with the option-pricing model were as follows for the years indicated:
<table><tr><td></td><td>2009</td><td>2008</td><td> 2007</td></tr><tr><td>Dividend yield</td><td>4.82%</td><td>1.32%</td><td>1.34%</td></tr><tr><td>Expected volatility</td><td>26.70</td><td>21.00</td><td>23.30</td></tr><tr><td>Risk-free interest rate</td><td>2.49</td><td>3.17</td><td>4.69</td></tr><tr><td>Expected option lives (in years)</td><td>7.8</td><td>7.8</td><td>7.8</td></tr></table>
Compensation expense related to stock options, stock appreciation rights, restricted stock awards, deferred stock awards and performance awards, which we record as a component of salaries and employee benefits expense in our consolidated statement of income, was $126 million, $321 million and $272 million for the years ended December 31, 2009, 2008 and 2007, respectively. The 2009 and 2008 expense excluded $13 million and $47 million, respectively, associated with accelerated vesting in connection with the restructuring plan described in note 6. The aggregate income tax benefit recorded in our consolidated statement of income related to the above-described compensation expense was $50 million, $127 million and $109 million for 2009, 2008 and 2007, respectively. Information about the 2006 Plan and 1997 Plan as of December 31, 2009, and activity during the years ended December 31, 2008 and 2009, is presented below:
<table><tr><td></td><td>Shares (in thousands)</td><td> Weighted Average Exercise Price</td><td> Weighted Average Remaining Contractual Term (in years)</td><td> Aggregate Intrinsic Value (in millions)</td></tr><tr><td>Stock Options and Stock Appreciation Rights:</td><td></td><td></td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2007</td><td>16,368</td><td>$48.94</td><td></td><td></td></tr><tr><td>Granted</td><td>921</td><td>81.71</td><td></td><td></td></tr><tr><td>Exercised</td><td>-2,926</td><td>44.99</td><td></td><td></td></tr><tr><td>Forfeited or expired</td><td>-47</td><td>47.40</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2008</td><td>14,316</td><td>51.86</td><td></td><td></td></tr><tr><td>Granted</td><td>516</td><td>19.31</td><td></td><td></td></tr><tr><td>Exercised</td><td>-832</td><td>40.57</td><td></td><td></td></tr><tr><td>Forfeited or expired</td><td>-833</td><td>46.32</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2009</td><td>13,167</td><td>$51.64</td><td> 4.10</td><td>$24.8</td></tr><tr><td>Exercisable at December 31, 2009</td><td>11,172</td><td>$50.12</td><td> 3.42</td><td>$12.0</td></tr></table>
The weighted-average grant date fair value of options granted in 2009, 2008 and 2007 was $2.96, $21.06 and $22.44, respectively. The total intrinsic value of options exercised during the years ended December 31, 2009, 2008 and 2007, was $5 million, $102 million and $129 million, respectively. As of December 31, 2009, total unrecognized compensation cost, net of estimated forfeitures, related to stock options and stock appreciation rights was $7 million, which is expected to be recognized over a weighted-average period of 21 months. value of our liquid assets, as defined, totaled $75.98 billion, compared to $85.81 billion as of December 31, 2008. The decrease was mainly attributable to unusually high 2008 deposit balances, as we experienced a significant increase in customer deposits during the second half of 2008 as the credit markets worsened. As customers accumulated liquidity, they placed cash with us, and these incremental customer deposits remained with State Street Bank at December 31, 2008. During 2009, as markets normalized, deposit levels moderated as customers returned to investing their cash, and our liquid asset levels declined accordingly. Due to the unusual size and volatile nature of these customer deposits, we maintained approximately $22.45 billion at central banks as of December 31, 2009, in excess of regulatory required minimums. Securities carried at $40.96 billion as of December 31, 2009, compared to $42.74 billion as of December 31, 2008, were designated as pledged for public and trust deposits, borrowed funds and for other purposes as provided by law, and are excluded from the liquid assets calculation, unless pledged to the Federal Reserve Bank of Boston. Liquid assets included securities pledged to the Federal Reserve Bank of Boston to secure State Street Bank’s ability to borrow from their discount window should the need arise. This access to primary credit is an important source of back-up liquidity for State Street Bank. As of December 31, 2009, we had no outstanding primary credit borrowings from the discount window. Based upon our level of liquid assets and our ability to access the capital markets for additional funding when necessary, including our ability to issue debt and equity securities under our current universal shelf registration, management considers overall liquidity at December 31, 2009 to be sufficient to meet State Street’s current commitments and business needs, including supporting the liquidity of the commercial paper conduits and accommodating the transaction and cash management needs of our customers. As referenced above, our ability to maintain consistent access to liquidity is fostered by the maintenance of high investment-grade ratings on our debt, as measured by the major independent credit rating agencies. Factors essential to retaining high credit ratings include diverse and stable core earnings; strong risk management; strong capital ratios; diverse liquidity sources, including the global capital markets and customer deposits; and strong liquidity monitoring procedures. High ratings on debt minimize borrowing costs and enhance our liquidity by ensuring the largest possible market for our debt. A downgrade or reduction of these credit ratings could have an adverse impact to our ability to access funding at favorable interest rates. The following table presents information about State Street’s and State Street Bank’s credit ratings as of February 22, 2010. |
23,079.4 | What was the average value of the Total commercial in the years where Total commercial real estateis positive? | In 2013, the Federal Reserve and the OCC adopted final capital rules implementing Basel III requirements for U. S. Banking organizations. The final rules establish an integrated regulatory capital framework and implement in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act. Under the final rule, minimum requirements will increase for both the quantity and quality of capital held by banking organizations. Consistent with the international Basel framework, the final rule includes a new minimum ratio of common equity tier 1 capital to risk-weighted assets and a capital conservation buffer of 2.5% of risk-weighted assets that will apply to all supervised financial institutions. The rule also raises the minimum ratio of tier 1 capital to risk-weighted assets and includes a minimum leverage ratio of 4%. These new minimum capital ratios were effective for us on January 1, 2015, and will be fully phased-in on January 1, 2019. The following are the Basel III regulatory capital levels that we must satisfy to avoid limitations on capital distributions and discretionary bonus payments during the applicable transition period, from January 1, 2015, until January 1, 2019:
<table><tr><td></td><td colspan="5">Basel III Regulatory Capital Levels</td></tr><tr><td></td><td>January 1,2015</td><td>January 1,2016</td><td>January 1,2017</td><td>January 1,2018</td><td>January 1,2019</td></tr><tr><td>Common equity tier 1 risk-based capital ratio</td><td>4.5%</td><td>5.125%</td><td>5.75%</td><td>6.375%</td><td>7.0%</td></tr><tr><td>Tier 1 risk-based capital ratio</td><td>6.0%</td><td>6.625%</td><td>7.25%</td><td>7.875%</td><td>8.5%</td></tr><tr><td>Total risk-based capital ratio</td><td>8.0%</td><td>8.625%</td><td>9.25%</td><td>9.875%</td><td>10.5%</td></tr></table>
The final rule emphasizes CET1 capital, the most loss-absorbing form of capital, and implements strict eligibility criteria for regulatory capital instruments. The final rule also improves the methodology for calculating risk-weighted assets to enhance risk sensitivity. Banks and regulators use risk weighting to assign different levels of risk to different classes of assets. Based on the final Basel III rule, banking organizations with more than $15 billion in total consolidated assets are required to phase-out of additional tier 1 capital any non-qualifying capital instruments (such as trust preferred securities and cumulative preferred shares) issued before September 12, 2010. We began the additional tier 1 capital phase-out of our trust preferred securities in 2015, but will be able to include these instruments in tier 2 capital as a non-advanced approaches institution. Under Basel III, CET1 predominantly includes common stockholders’ equity, less certain deductions for goodwill and other intangible assets net of related taxes, over-funded net pension fund assets, and DTAs that arise from tax loss and credit carryforwards. We elected to exclude accumulated other comprehensive income from CET1 as permitted in the final rule. Tier 1 capital is predominantly comprised of CET1 as well as perpetual preferred stock and qualifying minority interests. Total capital predominantly includes tier 1 capital as well as certain long-term debt and allowance for credit losses qualifying for tier 2 capital. The calculations of CET1, tier 1 capital, and tier 2 capital include phase-out periods for certain instruments from January 2015 through December 2017. The primary items subject to the phase-out from capital for us are other intangible assets, DTAs that arise from tax loss and credit carryforwards, and trust preferred securities. Risk-weighted assets under the Basel III Standardized Approach are generally based on supervisory risk weightings that vary only by counterparty type and asset class. The revisions to supervisory risk weightings for Basel III enhance risk sensitivity and include alternatives to the use of credit ratings when calculating the risk weight for certain assets. Specifically, Basel III includes a more risk-sensitive treatment for past due and nonaccrual loans, certain commercial loans, MSRs, and certain unfunded commitments. Basel III also prescribes a new formulaic approach for calculating the risk weight of securitization exposures that is also more risk sensitive. Failure to meet applicable capital guidelines could subject the financial institution to a variety of enforcement remedies available to the federal regulatory authorities. These include limitations on the ability to pay dividends, the issuance by the regulatory authority of a directive to increase capital, and the termination of deposit insurance by the FDIC. In addition, the financial institution could be subject to the measures described below under Prompt Corrective Action as applicable to undercapitalized institutions. The risk-based capital standards of the Federal Reserve, the OCC, and the FDIC specify that evaluations by the banking agencies of a bank’s capital adequacy will include an assessment of the exposure to declines in the economic value of a bank’s capital due to changes in interest rates. These banking agencies issued a joint policy statement on interest rate risk describing prudent methods for monitoring such risk that rely principally on internal measures of exposure and active oversight of risk management activities by senior management. Home equity – Home equity lending includes both home equity loans and lines-of-credit. This type of lending, which is secured by a first-lien or junior-lien on the borrower’s residence, allows customers to borrow against the equity in their home or refinance existing mortgage debt. Products include closed-end loans which are generally fixed-rate with principal and interest payments, and variable-rate, interest-only lines-of-credit which do not require payment of principal during the 10-year revolving period. The home equity line of credit may convert to a 20-year amortizing structure at the end of the revolving period. Applications are underwritten centrally in conjunction with an automated underwriting system. The home equity underwriting criteria is based on minimum credit scores, debt-to-income ratios, and LTV ratios, with current collateral valuations. The underwriting for the floating rate lines of credit also incorporates a stress analysis for a rising interest rate. Residential mortgage – Residential mortgage loans represent loans to consumers for the purchase or refinance of a residence. These loans are generally financed over a 15-year to 30-year term, and in most cases, are extended to borrowers to finance their primary residence. Applications are underwritten centrally using consistent credit policies and processes. All residential mortgage loan decisions utilize a full appraisal for collateral valuation. Huntington has not originated or acquired residential mortgages that allow negative amortization or allow the borrower multiple payment options. Other consumer – Other consumer loans primarily consists of consumer loans not secured by real estate, including personal unsecured loans, overdraft balances, and credit cards. The table below provides the composition of our total loan and lease portfolio: Table 8 - Loan and Lease Portfolio Composition (dollar amounts in millions)
<table><tr><td></td><td colspan="10">At December 31,</td></tr><tr><td></td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td><td colspan="2">2012</td><td colspan="2">2011</td></tr><tr><td>Commercial: -1</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial and industrial</td><td>$20,560</td><td>41%</td><td>$19,033</td><td>40%</td><td>$17,594</td><td>41%</td><td>$16,971</td><td>42%</td><td>$14,699</td><td>38%</td></tr><tr><td>Commercial real estate:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Construction</td><td>1,031</td><td>2</td><td>875</td><td>2</td><td>557</td><td>1</td><td>648</td><td>2</td><td>580</td><td>1</td></tr><tr><td>Commercial</td><td>4,237</td><td>8</td><td>4,322</td><td>9</td><td>4,293</td><td>10</td><td>4,751</td><td>12</td><td>5,246</td><td>13</td></tr><tr><td>Total commercial real estate</td><td>5,268</td><td>10</td><td>5,197</td><td>11</td><td>4,850</td><td>11</td><td>5,399</td><td>14</td><td>5,826</td><td>14</td></tr><tr><td>Total commercial</td><td>25,828</td><td>51</td><td>24,230</td><td>51</td><td>22,444</td><td>52</td><td>22,370</td><td>56</td><td>20,525</td><td>52</td></tr><tr><td>Consumer:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Automobile</td><td>9,481</td><td>19</td><td>8,690</td><td>18</td><td>6,639</td><td>15</td><td>4,634</td><td>11</td><td>4,458</td><td>11</td></tr><tr><td>Home equity</td><td>8,471</td><td>17</td><td>8,491</td><td>18</td><td>8,336</td><td>19</td><td>8,335</td><td>20</td><td>8,215</td><td>21</td></tr><tr><td>Residential mortgage</td><td>5,998</td><td>12</td><td>5,831</td><td>12</td><td>5,321</td><td>12</td><td>4,970</td><td>12</td><td>5,228</td><td>13</td></tr><tr><td>Other consumer</td><td>563</td><td>1</td><td>414</td><td>1</td><td>380</td><td>2</td><td>419</td><td>1</td><td>498</td><td>3</td></tr><tr><td>Total consumer</td><td>24,513</td><td>49</td><td>23,426</td><td>49</td><td>20,676</td><td>48</td><td>18,358</td><td>44</td><td>18,399</td><td>48</td></tr><tr><td>Total loans and leases</td><td>$50,341</td><td>100%</td><td>$47,656</td><td>100%</td><td>$43,120</td><td>100%</td><td>$40,728</td><td>100%</td><td>$38,924</td><td>100%</td></tr></table>
(1) As defined by regulatory guidance, there were no commercial loans outstanding that would be considered a concentration of lending to a particular industry or group of industries. Our loan portfolio is diversified by consumer and commercial credit. At the corporate level, we manage the credit exposure in part via a credit concentration policy. The policy designates specific loan types, collateral types, and loan structures to be formally tracked and assigned limits as a percentage of capital. C&I lending by NAICS categories, specific limits for CRE primary project types, loans secured by residential real estate, shared national credit exposure, and designated high risk loan definitions represent examples of specifically tracked components of our concentration management process. Currently there are no identified concentrations that exceed the established limit. Our concentration management policy is approved by the Risk Oversight Committee (ROC) and is one of the strategies used to ensure a high quality, well diversified portfolio that is consistent with our overall objective of maintaining an aggregate moderate-to-low risk profile. Changes to existing concentration limits require the approval of the ROC prior to implementation, incorporating specific information relating to the potential impact on the overall portfolio composition and performance metrics. The table below provides our total loan and lease portfolio segregated by the type of collateral securing the loan or lease. The changes in the collateral composition from December 31, 2014 are consistent with the portfolio growth metrics, with increases noted Table 48 - Selected Quarterly Income Statement, Capital, and Other Data (1)
<table><tr><td></td><td colspan="4">2014</td></tr><tr><td>Capital adequacy</td><td>December 31,</td><td>September 30,</td><td>June 30,</td><td>March 31,</td></tr><tr><td>Total risk-weighted assets(in millions)(11)</td><td>$54,479</td><td>$53,239</td><td>$53,035</td><td>$51,120</td></tr><tr><td>Tier 1 leverage ratio-11</td><td>9.74%</td><td>9.83%</td><td>10.01%</td><td>10.32%</td></tr><tr><td>Tier 1 risk-based capital ratio-11</td><td>11.50</td><td>11.61</td><td>11.56</td><td>11.95</td></tr><tr><td>Total risk-based capital ratio-11</td><td>13.56</td><td>13.72</td><td>13.67</td><td>14.13</td></tr><tr><td>Tier 1 common risk-based capital ratio-11</td><td>10.23</td><td>10.31</td><td>10.26</td><td>10.60</td></tr><tr><td>Tangible common equity / tangible asset ratio-8</td><td>8.17</td><td>8.35</td><td>8.38</td><td>8.63</td></tr><tr><td>Tangible equity / tangible asset ratio-9</td><td>8.76</td><td>8.95</td><td>8.99</td><td>9.26</td></tr><tr><td>Tangible common equity / risk-weighted assets ratio-11</td><td>9.86</td><td>9.99</td><td>9.99</td><td>10.22</td></tr></table>
(1) Comparisons for presented periods are impacted by a number of factors. Refer to the Significant Items section for additional discussion regarding these items. (2) For all quarterly periods presented above, the impact of the convertible preferred stock issued in April of 2008 was excluded from the diluted share calculation because the result would have been higher than basic earnings per common share (antidilutive) for the periods. (3) Deferred tax liability related to other intangible assets is calculated assuming a 35% tax rate. (4) High and low stock prices are intra-day quotes obtained from Bloomberg. (5) Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity. Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill. Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate. (6) Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses). (7) Presented on a FTE basis assuming a 35% tax rate. (8) Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax, and calculated assuming a 35% tax rate. (9) Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets). Other intangible assets are net of deferred tax, and calculated assuming a 35% tax rate. (10) On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule. (11) Ratios are calculated on the Basel I basis. ADDITIONAL DISCLOSURES Forward-Looking Statements This report, including MD&A, contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements. Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) worsening of credit quality performance due to a number of factors such as the underlying value of collateral that could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected, (2) changes in general economic, political, or industry conditions, uncertainty in U. S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board, volatility and disruptions in global capital and credit markets, (3) movements in interest rates, (4) competitive pressures on product pricing and services, (5) success, impact, and timing of our business strategies, including market acceptance of any new products or services technical and research personnel and lab facilities, and significantly expanded the portfolio of patents available to us via license and through a cooperative development program. In addition, we have acquired a 20 percent interest in GRT, Inc. The GTFTM technology is protected by an intellectual property protection program. The U. S. has granted 17 patents for the technology, with another 22 pending. Worldwide, there are over 300 patents issued or pending, covering over 100 countries including regional and direct foreign filings. Another innovative technology that we are developing focuses on reducing the processing and transportation costs of natural gas by artificially creating natural gas hydrates, which are more easily transportable than natural gas in its gaseous form. Much like LNG, gas hydrates would then be regasified upon delivery to the receiving market. We have an active pilot program in place to test and further develop a proprietary natural gas hydrates manufacturing system. The above discussion of the Integrated Gas segment contains forward-looking statements with respect to the possible expansion of the LNG production facility. Factors that could potentially affect the possible expansion of the LNG production facility include partner and government approvals, access to sufficient natural gas volumes through exploration or commercial negotiations with other resource owners and access to sufficient regasification capacity. The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements. Refining, Marketing and Transportation We have refining, marketing and transportation operations concentrated primarily in the Midwest, upper Great Plains, Gulf Coast and Southeast regions of the U. S. We rank as the fifth largest crude oil refiner in the U. S. and the largest in the Midwest. Our operations include a seven-plant refining network and an integrated terminal and transportation system which supplies wholesale and Marathon-brand customers as well as our own retail operations. Our wholly-owned retail marketing subsidiary Speedway SuperAmerica LLC (“SSA”) is the third largest chain of company-owned and -operated retail gasoline and convenience stores in the U. S. and the largest in the Midwest. Refining We own and operate seven refineries with an aggregate refining capacity of 1.188 million barrels per day (“mmbpd”) of crude oil as of December 31, 2009. During 2009, our refineries processed 957 mbpd of crude oil and 196 mbpd of other charge and blend stocks. The table below sets forth the location and daily crude oil refining capacity of each of our refineries as of December 31, 2009. |
0.06388 | What is the growing rate of Total costs and expenses in the year with the most Total revenue? | ECHOSTAR COMMUNICATIONS CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued F-34 closing price of the class A common stock on the last business day of each calendar quarter in which such shares of class A common stock are deemed sold to an employee under the ESPP. The ESPP shall terminate upon the first to occur of (i) October 1, 2007 or (ii) the date on which the ESPP is terminated by the Board of Directors. During 2000, 2001 and 2002 employees purchased approximately 58,000; 80,000 and 108,000 shares of class A common stock through the ESPP, respectively.401(k) Employee Savings Plan EchoStar sponsors a 401(k) Employee Savings Plan (the “401(k) Plan”) for eligible employees. Voluntary employee contributions to the 401(k) Plan may be matched 50% by EchoStar, subject to a maximum annual contribution by EchoStar of $1,000 per employee. Matching 401(k) contributions totaled approximately $1.6 million, $2.1 million and $2.4 million during the years ended December 31, 2000, 2001 and 2002, respectively. EchoStar also may make an annual discretionary contribution to the plan with approval by EchoStar’s Board of Directors, subject to the maximum deductible limit provided by the Internal Revenue Code of 1986, as amended. These contributions may be made in cash or in EchoStar stock. Forfeitures of unvested participant balances which are retained by the 401(k) Plan may be used to fund matching and discretionary contributions. Expense recognized relating to discretionary contributions was approximately $7 million, $225 thousand and $17 million during the years ended December 31, 2000, 2001 and 2002, respectively.9. Commitments and Contingencies Leases Future minimum lease payments under noncancelable operating leases as of December 31, 2002, are as follows (in thousands):
<table><tr><td>2003</td><td>$17,274</td></tr><tr><td>2004</td><td>14,424</td></tr><tr><td>2005</td><td>11,285</td></tr><tr><td>2006</td><td>7,698</td></tr><tr><td>2007</td><td>3,668</td></tr><tr><td>Thereafter</td><td>1,650</td></tr><tr><td>Total minimum lease payments</td><td>55,999</td></tr></table>
Total rent expense for operating leases approximated $9 million, $14 million and $16 million in 2000, 2001 and 2002, respectively. Purchase Commitments As of December 31, 2002, EchoStar’s purchase commitments totaled approximately $359 million. The majority of these commitments relate to EchoStar receiver systems and related components. All of the purchases related to these commitments are expected to be made during 2003. EchoStar expects to finance these purchases from existing unrestricted cash balances and future cash flows generated from operations. Patents and Intellectual Property Many entities, including some of EchoStar’s competitors, now have and may in the future obtain patents and other intellectual property rights that cover or affect products or services directly or indirectly related to those that EchoStar offers. EchoStar may not be aware of all patents and other intellectual property rights that its products may potentially infringe. Damages in patent infringement cases can include a tripling of actual damages in certain cases. Further, EchoStar cannot estimate the extent to which it may be required in the future to obtain licenses with respect to Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 52 Tivo litigation expense. We recorded $361 million of “Tivo litigation expense” during the year ended December 31, 2009 for supplemental damages, contempt sanctions and interest. See Note 14 in the Notes to the Consolidated Financial Statements in Item 15 of this Annual Report on Form 10-K for further discussion. Depreciation and amortization. “Depreciation and amortization” expense totaled $940 million during the year ended December 31, 2009, a $60 million or 6.0% decrease compared to the same period in 2008. The decrease in “Depreciation and amortization” expense was primarily due to the declines in depreciation expense related to set-top boxes used in our lease programs and the abandonment of a software development project during 2008 that was designed to support our IT systems. The decrease related to set-top-boxes was primarily attributable to capitalization of a higher mix of new advanced equipment in 2009 compared to the same period in 2008, which has a longer estimated useful life. In addition, the satellite depreciation expense declined due to the retirements of certain satellites from commercial service, almost entirely offset by depreciation expense associated with satellites placed in service in 2008. Interest income. “Interest income” totaled $30 million during the year ended December 31, 2009, a decrease of $21 million or 41.4% compared to the same period in 2008. This decrease principally resulted from lower percentage returns earned on our cash and marketable investment securities, partially offset by higher average cash and marketable investment securities balances during the year ended December 31, 2009. Interest expense, net of amounts capitalized. “Interest expense, net of amounts capitalized” totaled $388 million during the year ended December 31, 2009, an increase of $19 million or 5.0% compared to the same period in 2008. This change primarily resulted from an increase in interest expense related to the issuance of debt during 2009 and 2008 and the Ciel II capital lease, partially offset by a decrease in interest expense associated with 2008 debt redemptions. Other, net. “Other, net” expense totaled $16 million during the year ended December 31, 2009 compared to $169 million in 2008, a decrease of $153 million. This decrease primarily resulted from $178 million less in impairment charges on marketable and other investment securities, partially offset by $33 million less in net gains on the sale and exchanges of investments in 2009 compared to 2008. Earnings before interest, taxes, depreciation and amortization. EBITDA was $2.311 billion during the year ended December 31, 2009, a decrease of $576 million or 20.0% compared to the same period in 2008. EBITDA for the year ended December 31, 2009 was negatively impacted by the $361 million “Tivo litigation expense. ” The following table reconciles EBITDA to the accompanying financial statements.
<table><tr><td></td><td colspan="2"> For the Years Ended December 31,</td></tr><tr><td></td><td> 2009</td><td> 2008</td></tr><tr><td></td><td colspan="2">(In thousands)</td></tr><tr><td>EBITDA</td><td>$2,311,398</td><td>$2,887,697</td></tr><tr><td>Less:</td><td></td><td></td></tr><tr><td>Interest expense, net</td><td>358,391</td><td>318,661</td></tr><tr><td>Income tax provision (benefit), net</td><td>377,429</td><td>665,859</td></tr><tr><td>Depreciation and amortization</td><td>940,033</td><td>1,000,230</td></tr><tr><td>Net income (loss) attributable to DISH Network common shareholders</td><td>$635,545</td><td>$902,947</td></tr></table>
EBITDA is not a measure determined in accordance with accounting principles generally accepted in the United States, or GAAP, and should not be considered a substitute for operating income, net income or any other measure determined in accordance with GAAP. EBITDA is used as a measurement of operating efficiency and overall financial performance and we believe it to be a helpful measure for those evaluating companies in the pay-TV industry. Conceptually, EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Income tax (provision) benefit, net. Our income tax provision was $377 million during the year ended December 31, 2009, a decrease of $288 million compared to the same period in 2008. The decrease in the provision was primarily related to the decrease in “Income (loss) before income taxes” and a decrease in our effective tax rate. DISH NETWORK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued F-28 9. Acquisitions DBSD North America and TerreStar Transactions On March 2, 2012, the FCC approved the transfer of 40 MHz of AWS-4 wireless spectrum licenses held by DBSD North America and TerreStar to us. On March 9, 2012, we completed the DBSD Transaction and the TerreStar Transaction, pursuant to which we acquired, among other things, certain satellite assets and wireless spectrum licenses held by DBSD North America and TerreStar. In addition, during the fourth quarter 2011, we and Sprint entered into a mutual release and settlement agreement (the “Sprint Settlement Agreement”) pursuant to which all issues then being disputed relating to the DBSD Transaction and the TerreStar Transaction were resolved between us and Sprint, including, but not limited to, issues relating to costs allegedly incurred by Sprint to relocate users from the spectrum then licensed to DBSD North America and TerreStar. The total consideration to acquire the DBSD North America and TerreStar assets was approximately $2.860 billion. This amount includes $1.364 billion for the DBSD Transaction, $1.382 billion for the TerreStar Transaction, and the net payment of $114 million to Sprint pursuant to the Sprint Settlement Agreement. See Note 16 for further information. As a result of these acquisitions, we recognized the acquired assets and assumed liabilities based on our estimates of fair value at their acquisition date, including $102 million in an uncertain tax position in “Long-term deferred revenue, distribution and carriage payments and other long-term liabilities” on our Consolidated Balance Sheets. Subsequently, in the third quarter 2013, this uncertain tax position was resolved and $102 million was reversed and recorded as a decrease in “Income tax (provision) benefit, net” on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2013.10. Discontinued Operations As of December 31, 2013, Blockbuster had ceased all material operations. Accordingly, our Consolidated Balance Sheets, Consolidated Statements of Operations and Comprehensive Income (Loss) and Consolidated Statements of Cash Flows have been recast to present Blockbuster as discontinued operations for all periods presented and the amounts presented in the Notes to our Consolidated Financial Statements relate only to our continuing operations, unless otherwise noted. During the years ended December 31, 2013, 2012 and 2011, the revenue from our discontinued operations was $503 million, $1.085 billion and $974 million, respectively. “Income (loss) from discontinued operations, before income taxes” for the same periods was a loss of $54 million, $62 million and $3 million, respectively. In addition, “Income (loss) from discontinued operations, net of tax” for the same periods was a loss of $47 million, $37 million and $7 million, respectively. As of December 31, 2013, the net assets from our discontinued operations consisted of the following:
<table><tr><td></td><td>As of December 31, 2013 (In thousands)</td></tr><tr><td>Current assets from discontinued operations</td><td>$68,239</td></tr><tr><td>Noncurrent assets from discontinued operations</td><td>9,965</td></tr><tr><td>Current liabilities from discontinued operations</td><td>-49,471</td></tr><tr><td>Long-term liabilities from discontinued operations</td><td>-19,804</td></tr><tr><td>Net assets from discontinued operations</td><td>$8,929</td></tr></table>
PART II Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Market Price of and Dividends on the Registrant’s Common Equity and Related Stockholder Matters Market Information. Our Class A common stock is quoted on the Nasdaq Global Select Market under the symbol “DISH. ” The high and low closing sale prices of our Class A common stock during 2014 and 2013 on the Nasdaq Global Select Market (as reported by Nasdaq) are set forth below.
<table><tr><td>2014</td><td>High</td><td>Low</td></tr><tr><td>First Quarter</td><td>$62.42</td><td>$54.10</td></tr><tr><td>Second Quarter</td><td>65.64</td><td>56.23</td></tr><tr><td>Third Quarter</td><td>66.71</td><td>61.87</td></tr><tr><td>Fourth Quarter</td><td>79.41</td><td>57.96</td></tr><tr><td>2013</td><td>High</td><td>Low</td></tr><tr><td>First Quarter</td><td>$38.02</td><td>$34.19</td></tr><tr><td>Second Quarter</td><td>42.52</td><td>36.24</td></tr><tr><td>Third Quarter</td><td>48.09</td><td>41.66</td></tr><tr><td>Fourth Quarter</td><td>57.92</td><td>45.68</td></tr></table>
As of February 13, 2015, there were approximately 8,208 holders of record of our Class A common stock, not including stockholders who beneficially own Class A common stock held in nominee or street name. As of February 10, 2015, 213,247,004 of the 238,435,208 outstanding shares of our Class B common stock were beneficially held by Charles W. Ergen, our Chairman, and the remaining 25,188,204 were held in trusts established by Mr. Ergen for the benefit of his family. There is currently no trading market for our Class B common stock. Dividends. On December 28, 2012, we paid a cash dividend of $1.00 per share, or approximately $453 million, on our outstanding Class A and Class B common stock to stockholders of record at the close of business on December 14, 2012. While we currently do not intend to declare additional dividends on our common stock, we may elect to do so from time to time. Payment of any future dividends will depend upon our earnings and capital requirements, restrictions in our debt facilities, and other factors the Board of Directors considers appropriate. We currently intend to retain our earnings, if any, to support future growth and expansion, although we may repurchase shares of our common stock from time to time. See further discussion under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources” in this Annual Report on Form 10-K. Securities Authorized for Issuance Under Equity Compensation Plans. See “Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters” in this Annual Report on Form 10-K. Item 6. SELECTED FINANCIAL DATA The selected consolidated financial data as of and for each of the five years ended December 31, 2018 have been derived from our consolidated financial statements. On February 28, 2017, we and EchoStar and certain of our respective subsidiaries completed the Share Exchange. As the Share Exchange was a transaction between entities that are under common control accounting rules require that our Consolidated Financial Statements include the results of the Transferred Businesses for all periods presented, including periods prior to the completion of the Share Exchange. We initially recorded the Transferred Businesses at EchoStar’s historical cost basis. The difference between the historical cost basis of the Transferred Businesses and the net carrying value of the Tracking Stock was recorded in “Additional paid-in capital” on our Consolidated Balance Sheets. The results of the Transferred Businesses were prepared from separate records maintained by EchoStar for the periods prior to March 1, 2017, and may not necessarily be indicative of the conditions that would have existed, or the results of operations, if the Transferred Businesses had been operated on a combined basis with our subsidiaries. The selected consolidated financial data includes the results of the Transferred Businesses as described above for all periods presented, including periods prior to the completion of the Share Exchange. See Note 2 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K for further information. Certain prior year amounts have been reclassified to conform to the current year presentation. See further information under “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Explanation of Key Metrics and Other Items” in this Annual Report on Form 10-K. This data should be read in conjunction with our consolidated financial statements and related notes thereto for the three years ended December 31, 2018, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere in this Annual Report on Form 10-K.
<table><tr><td></td><td colspan="5">As of December 31,</td></tr><tr><td>Balance Sheet Data</td><td>2018</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="5">(In thousands)</td></tr><tr><td>Cash, cash equivalents and current marketable investment securities</td><td>$2,068,817</td><td>$1,980,673</td><td>$5,360,119</td><td>$1,611,894</td><td>$9,236,888</td></tr><tr><td>Total assets</td><td>30,587,012</td><td>29,773,766</td><td>27,914,292</td><td>22,665,292</td><td>21,756,516</td></tr><tr><td>Long-term debt and capital lease obligations (including current portion)</td><td>15,152,777</td><td>16,202,965</td><td>16,483,639</td><td>13,763,018</td><td>14,430,009</td></tr><tr><td>Total stockholders’ equity (deficit)</td><td>8,594,189</td><td>6,937,906</td><td>4,611,323</td><td>2,694,161</td><td>1,925,243</td></tr></table>
For the Years Ended December 31,
<table><tr><td></td><td colspan="5">For the Years Ended December 31,</td></tr><tr><td>Statements of Operations Data</td><td>2018</td><td>2017</td><td>2016</td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="5">(In thousands, except per share amounts)</td></tr><tr><td>Total revenue</td><td>$13,621,302</td><td>$14,391,375</td><td>$15,212,302</td><td>$15,225,493</td><td>$14,819,289</td></tr><tr><td>Total costs and expenses</td><td>11,473,681</td><td>12,823,610</td><td>12,893,041</td><td>13,797,121</td><td>12,915,803</td></tr><tr><td>Operating income (loss)</td><td>$2,147,621</td><td>$1,567,765</td><td>$2,319,261</td><td>$1,428,372</td><td>$1,903,486</td></tr><tr><td>Net income (loss) attributable to DISH Network</td><td>$1,575,091</td><td>$2,098,689</td><td>$1,497,939</td><td>$802,374</td><td>$996,648</td></tr><tr><td>Basic net income (loss) per share attributable to DISH Network</td><td>$3.37</td><td>$4.50</td><td>$3.22</td><td>$1.73</td><td>$2.17</td></tr><tr><td>Diluted net income (loss) per share attributable to DISH Network</td><td>$3.00</td><td>$4.07</td><td>$3.15</td><td>$1.73</td><td>$2.15</td></tr></table> |
21,435 | What is the total value of ALM strategy only, Automatic rebalancing only, External reinsurance-3 and PDI in 2016? (in million) | Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis 10 Other income (deductions) changed from $47.6 million in 2002 to ($36.0 million) in 2003 primarily due to a decrease in "miscellaneous - net" as a result of a $107.7 million accrual in the second quarter of 2003 for the loss that would be associated with a final, non-appealable decision disallowing abeyed River Bend plant costs. See Note 2 to the consolidated financial statements for more details regarding the River Bend abeyed plant costs. The decrease was partially offset by an increase in interest and dividend income as a result of the implementation of SFAS 143. Interest on long-term debt decreased from $462.0 million in 2002 to $433.5 million in 2003 primarily due to the redemption and refinancing of long-term debt. NON-UTILITY NUCLEAR Following are key performance measures for Non-Utility Nuclear:
<table><tr><td></td><td>2004</td><td>2003</td><td>2002</td></tr><tr><td>Net MW in operation at December 31</td><td>4,058</td><td>4,001</td><td>3,955</td></tr><tr><td>Average realized price per MWh</td><td>$41.26</td><td>$39.38</td><td>$40.07</td></tr><tr><td>Generation in GWh for the year</td><td>32,524</td><td>32,379</td><td>29,953</td></tr><tr><td>Capacity factor for the year</td><td>92%</td><td>92%</td><td>93%</td></tr></table>
2004 Compared to 2003 The decrease in earnings for Non-Utility Nuclear from $300.8 million to $245.0 million was primarily due to the $154.5 million net-of-tax cumulative effect of a change in accounting principle that increased earnings in the first quarter of 2003 upon implementation of SFAS 143. See "Critical Accounting Estimates - SFAS 143" below for discussion of the implementation of SFAS 143. Earnings before the cumulative effect of accounting change increased by $98.7 million primarily due to the following: ? lower operation and maintenance expenses, which decreased from $681.8 million in 2003 to $595.7 million in 2004, primarily resulting from charges recorded in 2003 in connection with the voluntary severance program; ? higher revenues, which increased from $1.275 billion in 2003 to $1.342 billion in 2004, primarily resulting from higher contract pricing. The addition of a support services contract for the Cooper Nuclear Station and increased generation in 2004 due to power uprates completed in 2003 and fewer planned and unplanned outages in 2004 also contributed to the higher revenues; and ? miscellaneous income resulting from a reduction in the decommissioning liability for a plant, as discussed in Note 8 to the consolidated financial statements. Partially offsetting this increase were the following: ? higher income taxes, which increased from $88.6 million in 2003 to $142.6 million in 2004; and ? higher depreciation expense, which increased from $34.3 million in 2003 to $48.9 million in 2004, due to additions to plant in service.2003 Compared to 2002 The increase in earnings for Non-Utility Nuclear from $200.5 million to $300.8 million was primarily due to the $154.5 million net-of-tax cumulative effect of a change in accounting principle recognized in the first quarter of 2003 upon implementation of SFAS 143. See "Critical Accounting Estimates - SFAS 143" below for discussion of the implementation of SFAS 143. Income before the cumulative effect of accounting change decreased by $54.2 million. The decrease was primarily due to $83.0 million ($50.6 million net-of-tax) of charges recorded in connection with the voluntary severance program. Except for the effect of the voluntary severance program, operation and maintenance expenses in 2003 per MWh of generation were in line with 2002 operation and maintenance expenses. Gains and Other Income The following table shows our gains and other income for the fiscal years ended December 31, 2004, January 2, 2004, and January 3, 2003.
<table><tr><td> <i>($ in millions)</i></td><td> 2004 </td><td> 2003 </td><td> 2002 </td></tr><tr><td>Timeshare note sale gains</td><td>$64</td><td>$64</td><td>$60</td></tr><tr><td>Synthetic fuel earn-out payments received, net</td><td>28</td><td>—</td><td>—</td></tr><tr><td>Gains on sales of real estate</td><td>44</td><td>21</td><td>28</td></tr><tr><td>Gains on sales of joint venture investments</td><td>19</td><td>21</td><td>44</td></tr><tr><td>Other</td><td>9</td><td>—</td><td>—</td></tr><tr><td></td><td>$164</td><td>$106</td><td>$132</td></tr></table>
Interest Expense 2004 COMPARED TO 2003 Interest expense decreased $11 million to $99 million, reflecting the repayment of $234 million of senior debt in the fourth quarter of 2003 and other subsequent debt reductions, partially offset by lower capitalized interest resulting from fewer projects under construction, primarily related to our Timeshare segment.2003 COMPARED TO 2002 Interest expense increased $24 million to $110 million, reflecting interest on the mortgage debt assumed in the fourth quarter of 2002 associated with the acquisition of 14 senior living communities, and lower capitalized interest resulting from fewer projects under construction, primarily related to our Timeshare segment. In the fourth quarter of 2003, $234 million of senior debt was repaid. The weighted average interest rate on the repaid debt was 7 percent. Interest Income, Provision for Loan Losses, and Income Tax 2004 COMPARED TO 2003 Interest income, before the provision for loan losses, increased $17 million (13 percent) to $146 million, reflecting higher loan balances, including the $200 million note collected in the third quarter of 2004 related to the acquisition by Cendant Corporation of our interest in the Two Flags joint venture and higher interest rates. We recognized $9 million of interest income associated with the $200 million note, which was issued early in the 2004 second quarter. Our provision for loan losses for 2004 was a benefit of $8 million and includes $3 million of reserves for loans deemed uncollectible at three hotels, offset by the reversal of $11 million of reserves no longer deemed necessary. Income from continuing operations before income taxes generated a tax provision of $100 million in 2004, compared to a tax benefit of $43 million in 2003. The difference is primarily attributable to the impact of the synthetic fuel joint ventures, which generated a tax benefit and tax credits of $165 million in 2004, compared to $245 million in 2003 and to higher pre-tax income. In the third quarter of 2003, we sold a 50 percent interest in our synthetic fuel joint ventures, and we currently consolidate the joint ventures.2003 COMPARED TO 2002 Interest income increased $7 million (6 percent) to $129 million. Our provision for loan losses for 2003 was $7 million and includes $15 million of reserves for loans deemed uncollectible at six hotels, offset by the reversal of $8 million of reserves no longer deemed necessary. Income from continuing operations before income taxes and minority interest generated a tax benefit of $43 million in 2003, compared to a tax provision of $32 million in 2002. The difference is primarily attributable to the impact of our synthetic fuel operation, which generated a tax benefit and tax credits of $245 million in 2003, compared to $208 million in 2002. Excluding the impact of the synthetic fuel operation, our pre-tax income was lower in 2003, which also contributed to the favorable tax impact. Our effective tax rate for discontinued operations increased from 15.7 percent to 39 percent due to the impact of the taxes in 2002 associated with the sale of stock in connection with the disposal of our Senior Living Services business. Minority Interest Minority interest increased from an expense of $55 million in 2003 to a benefit of $40 million in 2004, primarily as a result of the change in the ownership structure of the synthetic fuel joint ventures following our sale of 50 percent of our interest in the joint ventures. Due to the purchaser’s put option, which expired on November 6, 2003, minority interest for 2003 reflected our partner’s share of the synthetic fuel operating losses and its share of the associated tax benefit, along with its share of the tax credits from the June 21, 2003, sale date through the put option’s expiration date, when we began accounting for the ventures under the equity method of accounting. For 2004, minority interest reflects our partner’s share of the synthetic fuel losses from March 26, 2004 (when we began consolidating the ventures due to the adoption of FIN 46(R)), through year-end. For additional information, see the discussion relating to our “Synthetic Fuel” segment on page 19. Income from Continuing Operations 2004 COMPARED TO 2003 Income from continuing operations increased 25 percent to $594 million, and diluted earnings per share from continuing operations increased 27 percent to $2.47. The favorable results were primarily driven by strong hotel demand, new unit growth, strong timeshare results, higher interest income reflecting higher balances and rates, lower interest expense due to debt reductions, lower loan loss provisions, stronger synthetic fuel results and increased gains of $58 million, partially offset by higher income taxes excluding the synthetic fuel impact, and higher general and administrative expenses.2003 COMPARED TO 2002 Income from continuing operations increased 8 percent to $476 million, and diluted earnings per share from continuing operations advanced 11 percent to $1.94. Synthetic fuel operations contributed $96 million in 2003 compared to $74 million in 2002. Our lodging financial results declined $5 million to $702 million in 2003. The comparisons Product Specific Risks and Risk Mitigants For certain living benefits guarantees, claims will primarily represent the funding of contractholder lifetime withdrawals after the cumulative withdrawals have first exhausted the contractholder account value. Due to the age of the in force block, limited claim payments have occurred to date, and they are not expected to increase significantly within the next five years, based upon current assumptions. The timing and amount of future claims will depend on actual returns on contractholder account value and actual contractholder behavior relative to our assumptions. The majority of our current living benefits guarantees provide for guaranteed lifetime contractholder withdrawal payments inclusive of a “highest daily” contract value guarantee. Our PDI variable annuity complements our variable annuity products with the highest daily benefit and provides for guaranteed lifetime contractholder withdrawal payments, but restricts contractholder asset allocation to a single bond fund sub-account within the separate accounts. The majority of our variable annuity contracts with living benefits guarantees, and all new contracts sold with our highest daily living benefits feature, include risk mitigants in the form of an automatic rebalancing feature and/or inclusion in our ALM strategy. We may also utilize external reinsurance as a form of additional risk mitigation. The risks associated with the guaranteed benefits of certain legacy products that were sold prior to our development of the automatic rebalancing feature are also managed through our ALM strategy. Certain legacy GMAB products include the automatic rebalancing feature, but are not included in the ALM strategy. The PDI product and contracts with the GMIB feature have neither risk mitigant. Certain risks associated with PDI are managed through the limitation of contractholder asset allocations to a single bond fund sub-account. For our GMDBs, we provide a benefit payable in the event of death. Our base GMDB is generally equal to a return of cumulative deposits adjusted for any partial withdrawals. Certain products include an optional enhanced GMDB based on the greater of a minimum return on the contract value or an enhanced value. We have retained the risk that the total amount of death benefit payable may be greater than the contractholder account value. However, a substantial portion of the account values associated with GMDBs are subject to an automatic rebalancing feature because the contractholder also selected a living benefit guarantee which includes an automatic rebalancing feature. All of the variable annuity account values with living benefit guarantees also contain GMDBs. The living and death benefit features for these contracts cover the same insured life and, consequently, we have insured both the longevity and mortality risk on these contracts. The following table sets forth the risk management profile of our living benefit guarantees and GMDB features as of the periods indicated.
<table><tr><td></td><td colspan="6">December 31,</td></tr><tr><td></td><td colspan="2">2016</td><td colspan="2">2015</td><td colspan="2">2014</td></tr><tr><td></td><td>Account Value</td><td>% of Total</td><td>Account Value</td><td>% of Total</td><td>Account Value</td><td>% of Total</td></tr><tr><td></td><td colspan="6">(in millions)</td></tr><tr><td>Living benefit/GMDB features-1:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Both ALM strategy and automatic rebalancing-2</td><td>$106,585</td><td>69%</td><td>$106,018</td><td>71%</td><td>$110,953</td><td>72%</td></tr><tr><td>ALM strategy only</td><td>9,409</td><td>6%</td><td>9,994</td><td>7%</td><td>11,395</td><td>7%</td></tr><tr><td>Automatic rebalancing only</td><td>1,168</td><td>1%</td><td>1,393</td><td>1%</td><td>1,771</td><td>1%</td></tr><tr><td>External reinsurance-3</td><td>2,932</td><td>2%</td><td>1,513</td><td>1%</td><td>0</td><td>0%</td></tr><tr><td>PDI</td><td>7,926</td><td>5%</td><td>4,664</td><td>3%</td><td>2,777</td><td>2%</td></tr><tr><td>Other Products</td><td>2,730</td><td>2%</td><td>2,870</td><td>2%</td><td>3,324</td><td>2%</td></tr><tr><td>Total living benefit/GMDB features</td><td>$130,750</td><td></td><td>$126,452</td><td></td><td>$130,220</td><td></td></tr><tr><td>GMDB features and other-4</td><td>22,545</td><td>15%</td><td>22,989</td><td>15%</td><td>24,863</td><td>16%</td></tr><tr><td>Total variable annuity account value</td><td>$153,295</td><td></td><td>$149,441</td><td></td><td>$155,083</td><td></td></tr></table>
(1) All contracts with living benefit guarantees also contain GMDB features, covering the same insured contract. (2) Contracts with living benefits that are included in our ALM strategy, and have an automatic rebalancing feature. (3) Represents contracts subject to reinsurance transaction with external counterparty covering new business for the period April 1, 2015 through December 31, 2016. These contracts with living benefits also have an automatic rebalancing feature. (4) Includes contracts that have a GMDB feature and do not have an automatic rebalancing feature. The risk profile of our variable annuity account values as of the periods above reflect our product risk diversification strategy and the runoff of legacy products over time. |
0.24199 | what was the percentage change in cash provided by operating activities from 2007 to 2008? | MetLife, Inc. Notes to the Consolidated Financial Statements — (Continued) Issuance Costs In connection with the offering of common equity units, the Holding Company incurred $55.3 million of issuance costs of which $5.8 million related to the issuance of the junior subordinated debentures underlying common equity units which funded the Series A and Series B trust preferred securities and $49.5 million related to the expected issuance of the common stock under the stock purchase contracts. The $5.8 million in debt issuance costs were capitalized, included in other assets, and amortized using the effective interest method over the period from issuance date of the common equity units to the initial and subsequent stock purchase date. The remaining $49.5 million of costs related to the common stock issuance under the stock purchase contracts and were recorded as a reduction of additional paid-in capital. Earnings Per Common Share The stock purchase contracts are reflected in diluted earnings per common share using the treasury stock method. The stock purchase contracts were included in diluted earnings per common share for the years ended December 31, 2008, 2007 and 2006 as shown in Note 20. Remarketing of Junior Subordinated Debentures and Settlement of Stock Purchase Contracts On August 15, 2008, the Holding Company closed the successful remarketing of the Series A portion of the junior subordinated debentures underlying the common equity units. The Series A junior subordinated debentures were modified as permitted by their terms to be 6.817% senior debt securities Series A, due August 15, 2018. The Holding Company did not receive any proceeds from the remarketing. Most common equity unit holders chose to have their junior subordinated debentures remarketed and used the remarketing proceeds to settle their payment obligations under the applicable stock purchase contract. For those common equity unit holders that elected not to participate in the remarketing and elected to use their own cash to satisfy the payment obligations under the stock purchase contract, the terms of the debt are the same as the remarketed debt. The initial settlement of the stock purchase contracts occurred on August 15, 2008, providing proceeds to the Holding Company of $1,035 million in exchange for shares of the Holding Company’s common stock. The Holding Company delivered 20,244,549 shares of its common stock held in treasury at a value of $1,064 million to settle the stock purchase contracts. On February 17, 2009, the Holding Company closed the successful remarketing of the Series B portion of the junior subordinated debentures underlying the common equity units. The Series B junior subordinated debentures were modified as permitted by their terms to be 7.717% senior debt securities Series B, due February 15, 2019. The Holding Company did not receive any proceeds from the remarketing. Most common equity unit holders chose to have their junior subordinated debentures remarketed and used the remarketing proceeds to settle their payment obligations under the applicable stock purchase contract. For those common equity unit holders that elected not to participate in the remarketing and elected to use their own cash to satisfy the payment obligations under the stock purchase contract, the terms of the debt are the same as the remarketed debt. The subsequent settlement of the stock purchase contracts occurred on February 17, 2009, providing proceeds to the Holding Company of $1,035 million in exchange for shares of the Holding Company’s common stock. The Holding Company delivered 24,343,154 shares of its newly issued common stock at a value of $1,035 million to settle the stock purchase contracts. See also Notes 10, 12, 18 and 25.14. Shares Subject to Mandatory Redemption and Company-Obligated Mandatorily Redeemable Securities of Subsidiary Trusts GenAmerica Capital I. In June 1997, GenAmerica Corporation (“GenAmerica”) issued $125 million of 8.525% capital securities through a wholly-owned subsidiary trust, GenAmerica Capital I. In October 2007, GenAmerica redeemed these securities which were due to mature on June 30, 2027. As a result of this redemption, the Company recognized additional interest expense of $10 million. Interest expense on these instruments is included in other expenses and was $20 million and $11 million for the years ended December 31, 2007 and 2006, respectively.15. Income Tax The provision for income tax from continuing operations is as follows:
<table><tr><td></td><td colspan="3"> Years Ended December 31,</td></tr><tr><td></td><td>2008</td><td>2007</td><td> 2006</td></tr><tr><td></td><td colspan="3"> (In millions)</td></tr><tr><td>Current:</td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>$216</td><td>$424</td><td>$615</td></tr><tr><td>State and local</td><td>10</td><td>15</td><td>39</td></tr><tr><td>Foreign</td><td>372</td><td>200</td><td>144</td></tr><tr><td>Subtotal</td><td>598</td><td>639</td><td>798</td></tr><tr><td>Deferred:</td><td></td><td></td><td></td></tr><tr><td>Federal</td><td>1,078</td><td>1,015</td><td>164</td></tr><tr><td>State and local</td><td>-6</td><td>31</td><td>2</td></tr><tr><td>Foreign</td><td>-90</td><td>-25</td><td>52</td></tr><tr><td>Subtotal</td><td>982</td><td>1,021</td><td>218</td></tr><tr><td>Provision for income tax</td><td>$1,580</td><td>$1,660</td><td>$1,016</td></tr></table>
the same default methodology to all Alt-A bonds, regardless of the underlying collateral. The Company’s Alt-A portfolio has superior structure to the overall Alt-A market. The Company’s Alt-A portfolio is 88% fixed rate collateral, has zero exposure to option ARM mortgages and has only 12% hybrid ARMs. Fixed rate mortgages have performed better than both option ARMs and hybrid ARMs. Additionally, 83% of the Company’s Alt-A portfolio has super senior credit enhancement, which typically provides double the credit enhancement of a standard AAA rated bond. Based upon the analysis of the Company’s exposure to Alt-A mortgage loans through its investment in asset-backed securities, the Company continues to expect to receive payments in accordance with the contractual terms of the securities. Asset-Backed Securities. The Company’s asset-backed securities are diversified both by sector and by issuer. At December 31, 2008, the largest exposures in the Company’s asset-backed securities portfolio were credit card receivables, automobile receivables, student loan receivables and residential mortgage-backed securities backed by sub-prime mortgage loans of 49%, 10%, 10% and 10% of the total holdings, respectively. At December 31, 2008 and 2007, the Company’s holdings in asset-backed securities was $10.5 billion and $10.6 billion at estimated fair value. At December 31, 2008 and 2007, $7.9 billion and $5.7 billion, respectively, or 75% and 54%, respectively, of total asset-backed securities were rated Aaa/AAA by Moody’s, S&P or Fitch. The Company’s asset-backed securities included in the structured securities table above include exposure to residential mortgagebacked securities backed by sub-prime mortgage loans. Sub-prime mortgage lending is the origination of residential mortgage loans to customers with weak credit profiles. The Company’s exposure exists through investment in asset-backed securities which are supported by sub-prime mortgage loans. The slowing U. S. housing market, greater use of affordable mortgage products, and relaxed underwriting standards for some originators of below-prime loans have recently led to higher delinquency and loss rates, especially within the 2006 and 2007 vintage year. Vintage year refers to the year of origination and not to the year of purchase. These factors have caused a pull-back in market liquidity and repricing of risk, which has led to an increase in unrealized losses from December 31, 2007 to December 31, 2008. Based upon the analysis of the Company’s exposure to sub-prime mortgage loans through its investment in asset-backed securities, the Company expects to receive payments in accordance with the contractual terms of the securities. The following table shows the Company’s exposure to asset-backed securities supported by sub-prime mortgage loans by credit quality and by vintage year:
<table><tr><td></td><td colspan="12"> December 31, 2008</td></tr><tr><td></td><td colspan="2"> Aaa</td><td colspan="2"> Aa</td><td colspan="2"> A</td><td colspan="2"> Baa</td><td colspan="2"> Below Investment Grade</td><td colspan="2"> Total</td></tr><tr><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td></tr><tr><td></td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td></tr><tr><td></td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td></tr><tr><td></td><td colspan="12"> (In millions)</td></tr><tr><td>2003 & Prior</td><td>$96</td><td>$77</td><td>$92</td><td>$72</td><td>$26</td><td>$16</td><td>$83</td><td>$53</td><td>$8</td><td>$4</td><td>$305</td><td>$222</td></tr><tr><td>2004</td><td>129</td><td>70</td><td>372</td><td>204</td><td>5</td><td>3</td><td>37</td><td>28</td><td>2</td><td>1</td><td>545</td><td>306</td></tr><tr><td>2005</td><td>357</td><td>227</td><td>186</td><td>114</td><td>20</td><td>11</td><td>79</td><td>46</td><td>4</td><td>4</td><td>646</td><td>402</td></tr><tr><td>2006</td><td>146</td><td>106</td><td>69</td><td>30</td><td>15</td><td>10</td><td>26</td><td>7</td><td>2</td><td>2</td><td>258</td><td>155</td></tr><tr><td>2007</td><td>—</td><td>—</td><td>78</td><td>33</td><td>35</td><td>21</td><td>2</td><td>2</td><td>3</td><td>1</td><td>118</td><td>57</td></tr><tr><td>2008</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>$728</td><td>$480</td><td>$797</td><td>$453</td><td>$101</td><td>$61</td><td>$227</td><td>$136</td><td>$19</td><td>$12</td><td>$1,872</td><td>$1,142</td></tr></table>
December 31, 2007
<table><tr><td></td><td colspan="12"> December 31, 2007</td></tr><tr><td></td><td colspan="2"> Aaa</td><td colspan="2"> Aa</td><td colspan="2"> A</td><td colspan="2"> Baa</td><td colspan="2"> Below Investment Grade</td><td colspan="2"> Total</td></tr><tr><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td><td> Cost or </td><td></td></tr><tr><td></td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td><td> Amortized </td><td> Fair </td></tr><tr><td></td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td><td> Cost</td><td> Value</td></tr><tr><td></td><td colspan="12"> (In millions)</td></tr><tr><td>2003 & Prior</td><td>$217</td><td>$206</td><td>$130</td><td>$123</td><td>$15</td><td>$14</td><td>$13</td><td>$12</td><td>$4</td><td>$2</td><td>$379</td><td>$357</td></tr><tr><td>2004</td><td>186</td><td>169</td><td>412</td><td>383</td><td>11</td><td>9</td><td>—</td><td>—</td><td>1</td><td>—</td><td>610</td><td>561</td></tr><tr><td>2005</td><td>509</td><td>462</td><td>218</td><td>197</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>727</td><td>659</td></tr><tr><td>2006</td><td>244</td><td>223</td><td>64</td><td>43</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>308</td><td>266</td></tr><tr><td>2007</td><td>132</td><td>123</td><td>17</td><td>9</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>149</td><td>132</td></tr><tr><td>Total</td><td>$1,288</td><td>$1,183</td><td>$841</td><td>$755</td><td>$26</td><td>$23</td><td>$13</td><td>$12</td><td>$5</td><td>$2</td><td>$2,173</td><td>$1,975</td></tr></table>
At December 31, 2008 and 2007, the Company had asset-backed securities supported by sub-prime mortgage loans with estimated fair values of $1.1 billion and $2.0 billion, respectively, and unrealized losses of $730 million and $198 million, respectively, as outlined in the tables above. At December 31, 2008, approximately 82% of the portfolio is rated Aa or better of which 82% was in vintage year 2005 and prior. At December 31, 2007, approximately 98% of the portfolio was rated Aa or better of which 79% was in vintage year 2005 and prior. These older vintages benefit from better underwriting, improved enhancement levels and higher residential property price appreciation. At December 31, 2008, 37% of the asset-backed securities backed by sub-prime mortgage loans have been guaranteed by financial guarantee insurers, of which 19% and 37% were guaranteed by financial guarantee insurers who were Aa and Baa rated, respectively. At December 31, 2008, all of the $1.1 billion of asset-backed securities supported by sub-prime mortgage loans were classified as Level 3 securities. have access to liquidity by issuing bonds to public or private investors based on our assessment of the current condition of the credit markets. At December 31, 2009, we had a working capital surplus of approximately $1.0 billion, which reflects our decision to maintain additional cash reserves to enhance liquidity in response to difficult economic conditions. At December 31, 2008, we had a working capital deficit of approximately $100 million. Historically, we have had a working capital deficit, which is common in our industry and does not indicate a lack of liquidity. We maintain adequate resources and, when necessary, have access to capital to meet any daily and short-term cash requirements, and we have sufficient financial capacity to satisfy our current liabilities.
<table><tr><td><i>Millions of Dollars</i></td><td><i>2009</i></td><td>2008</td><td>2007</td></tr><tr><td>Cash provided by operating activities</td><td>$3,234</td><td>$4,070</td><td>$3,277</td></tr><tr><td>Cash used in investing activities</td><td>-2,175</td><td>-2,764</td><td>-2,426</td></tr><tr><td>Cash used in financing activities</td><td>-458</td><td>-935</td><td>-800</td></tr><tr><td>Net change in cash and cash equivalents</td><td>$601</td><td>$371</td><td>$51</td></tr></table>
Operating Activities Lower net income in 2009, a reduction of $184 million in the outstanding balance of our accounts receivable securitization program, higher pension contributions of $72 million, and changes to working capital combined to decrease cash provided by operating activities compared to 2008. Higher net income and changes in working capital combined to increase cash provided by operating activities in 2008 compared to 2007. In addition, accelerated tax deductions enacted in 2008 on certain new operating assets resulted in lower income tax payments in 2008 versus 2007. Voluntary pension contributions in 2008 totaling $200 million and other pension contributions of $8 million partially offset the year-over-year increase versus 2007. Investing Activities Lower capital investments and higher proceeds from asset sales drove the decrease in cash used in investing activities in 2009 versus 2008. Increased capital investments and lower proceeds from asset sales drove the increase in cash used in investing activities in 2008 compared to 2007. |
0.0044 | percent change of average shares outstanding when taking dilution into consideration in 2008? | ABIOMED, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements—(Continued) Note 12. Stock Award Plans and Stock Based Compensation (Continued) Restricted Stock The following table summarizes restricted stock activity for the fiscal year ended March 31, 2009:
<table><tr><td></td><td colspan="2"> March 31, 2009</td></tr><tr><td></td><td>Number of Shares (in thousands)</td><td> Grant Date Fair Value</td></tr><tr><td>Restricted stock awards at March 31, 2008</td><td>54</td><td>$11.52</td></tr><tr><td>Granted</td><td>666</td><td>16.75</td></tr><tr><td>Vested</td><td>-167</td><td>14.65</td></tr><tr><td>Forfeited</td><td>-73</td><td>17.53</td></tr><tr><td>Restricted stock awards at March 31, 2009</td><td>480</td><td>$16.77</td></tr></table>
The remaining unrecognized compensation expense for restricted stock awards at March 31, 2009 was $4.6 million. The weighted average remaining contractual life for restricted stock awards at March 31, 2009 and 2008 was 1.8 and 2.4 years, respectively. In May 2008, 260,001 shares of restricted stock were issued to certain executive officers and certain members of senior management of the Company, of which 130,002 of these shares vest upon achievement of a prescribed performance milestone. In September 2008, the Company met the prescribed performance milestone, and all of these performance-based shares vested. In connection with the vesting of these shares, these employees paid withholding taxes due by returning 39,935 shares valued at $0.7 million. These shares have been recorded as treasury stock as of March 31, 2009. The remaining 129,999 of the restricted shares award vest ratably over four years from the grant date. The stock compensation expense for the restricted stock awards is recognized on a straight-line basis over the vesting period, based on the probability of achieving the performance milestones. In August 2008, 406,250 shares of restricted stock were issued to certain executive officers and certain members of senior management of the Company, all of which could vest upon achievement of certain prescribed performance milestones. In March 2009, the Company met a prescribed performance milestone, and a portion of these performance-based shares vested. The remaining stock compensation expense for the restricted stock awards is being recognized on a straight-line basis over the vesting period through March 31, 2011 based on the probability of achieving the performance milestones. The cumulative effects of changes in the probability of achieving the milestones will be recorded in the period in which the changes occur. During the year ended March 31, 2008, 60,000 shares of restricted stock were issued to certain executive officers of the Company that vest on the third anniversary of the date of grant. The stock compensation expense for the restricted stock awards is recognized on a straight-line basis over the vesting period. Employee Stock Purchase Plan In March 1988, the Company adopted the 1988 Employee Stock Purchase Plan (“the Purchase Plan” or “ESPP”), as amended. Under the Purchase Plan, eligible employees, including officers and directors, who have completed three months of employment with the Company or its subsidiaries who elect to participate in the Purchase plan instruct the Company to withhold a specified amount from each payroll period during a six-month payment period (the periods April 1—September 30 and October 1—March 31). On the last business day of each payment period, the amount withheld is used to purchase common stock at an exercise price equal to 85% of the lower of its market price on the first business day or the last business day of the payment period. Up to 500,000 shares of common stock may be issued under the Purchase Plan, of which 163,245 shares are available for future issuance as of March 31, 2009. During the years ended March 31, 2009, 2008 and 2007, 45,823, 23,930, and 27,095 shares of common stock, respectively, were sold pursuant to the Purchase Plan. PAR T I I Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock is traded on the New York Stock Exchange under the ticker symbol BBY. The table below sets forth the high and low sales prices of our common stock as reported on the New York Stock Exchange — Composite Index during the periods indicated. The stock prices below have been revised to reflect a three-for-two stock split effected on August 3, 2005.
<table><tr><td> </td><td colspan="2"> Sales Price</td></tr><tr><td> </td><td> High</td><td> Low</td></tr><tr><td><i>Fiscal 2006</i></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$36.99</td><td>$31.93</td></tr><tr><td>Second Quarter</td><td>53.17</td><td>36.20</td></tr><tr><td>Third Quarter</td><td>50.88</td><td>40.40</td></tr><tr><td>Fourth Quarter</td><td>56.00</td><td>42.75</td></tr><tr><td><i>Fiscal 2005</i></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$37.50</td><td>$30.10</td></tr><tr><td>Second Quarter</td><td>36.42</td><td>29.25</td></tr><tr><td>Third Quarter</td><td>41.47</td><td>30.57</td></tr><tr><td>Fourth Quarter</td><td>40.48</td><td>33.91</td></tr></table>
Holders As of April 24, 2006, there were 2,632 holders of record of Best Buy common stock. Dividends In fiscal 2004, our Board initiated the payment of a regular quarterly cash dividend, then $0.07 per common share per quarter. A quarterly cash dividend has been paid in each subsequent quarter. Effective with the quarterly cash dividend paid in the third quarter of fiscal 2005, we increased our quarterly cash dividend per common share by 10 percent. Effective with the quarterly cash dividend paid in the third quarter of fiscal 2006, we increased our quarterly cash dividend per common share by 9 percent to $0.08 per common share per quarter. The payment of cash dividends is subject to customary legal and contractual restrictions. Future dividend payments will depend on the Company’s earnings, capital requirements, financial condition and other factors considered relevant by our Board. Purchases of Equity Securities by the Issuer and Affiliated Purchasers In April 2005, our Board authorized a $1.5 billion share repurchase program. The program, which became effective on April 27, 2005, terminated and replaced a $500 million share repurchase program authorized by our Board in June 2004. Effective on June 24, 2004, our Board authorized the $500 million share repurchase program, which terminated and replaced a $400 million share repurchase program authorized by our Board in fiscal 2000. During the fourth quarter of fiscal 2006, we purchased and retired 7.1 million shares at a cost of $338 million. Since the inception of the $1.5 billion share repurchase program in fiscal 2006, we purchased and retired 16.5 million shares at a cost of $711 million. We consider several factors in determining when to make share repurchases including, among other things, our cash needs and the market price of the stock. At the end of fiscal 2006, $790 million of the $1.5 billion originally authorized by our Board was available for future share repurchases. Cash provided by future operating activities, available cash and cash equivalents, as well as short-term investments, are the expected sources of funding for the share repurchase program. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Continued Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. A discussion of the results of operations by principal business segment for the years ended December 31, 2014, 2013 and 2012 follows. For additional business segment financial information, see Note N to the financial statements in Item 8. Year Ended December 31, 2014 Compared with Year Ended December 31, 2013 The Companies’ results of operations in 2014 compared with 2013 were:
<table><tr><td></td><td colspan="2">CECONY</td><td colspan="2">O&R</td><td colspan="2">Competitive Energy Businesses</td><td colspan="2">Other(a)</td><td colspan="2">Con Edison(b)</td></tr><tr><td> (Millions of Dollars)</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td></tr><tr><td>Operating revenues</td><td>$356</td><td>3.4%</td><td>$59</td><td>7.1%</td><td>$148</td><td>13.5%</td><td>$2</td><td>40.0%</td><td>$565</td><td>4.6%</td></tr><tr><td>Purchased power</td><td>70</td><td>3.5</td><td>21</td><td>9.7</td><td>227</td><td>26.4</td><td>-</td><td>-</td><td>318</td><td>10.3</td></tr><tr><td>Fuel</td><td>-35</td><td>-10.9</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-35</td><td>-10.9</td></tr><tr><td>Gas purchased for resale</td><td>77</td><td>14.5</td><td>12</td><td>15.8</td><td>88</td><td>Large</td><td>-1</td><td>Large</td><td>176</td><td>27.7</td></tr><tr><td>Other operations and maintenance</td><td>138</td><td>5.0</td><td>16</td><td>5.3</td><td>3</td><td>2.9</td><td>-</td><td>-</td><td>157</td><td>5.0</td></tr><tr><td>Depreciation and amortization</td><td>45</td><td>4.8</td><td>5</td><td>8.9</td><td>-4</td><td>-17.4</td><td>1</td><td>Large</td><td>47</td><td>4.6</td></tr><tr><td>Taxes, other than income taxes</td><td>-18</td><td>-1.0</td><td>-2</td><td>-3.2</td><td>2</td><td>11.8</td><td>-</td><td>-</td><td>-18</td><td>-0.9</td></tr><tr><td>Gain on sale of solar electric production projects</td><td>-</td><td>-</td><td>-</td><td>-</td><td>45</td><td>-</td><td>-</td><td>-</td><td>45</td><td>-</td></tr><tr><td>Operating income (loss)</td><td>79</td><td>3.8</td><td>7</td><td>5.8</td><td>-123</td><td>Large</td><td>2</td><td>Large</td><td>-35</td><td>-1.6</td></tr><tr><td>Other income less deductions</td><td>10</td><td>Large</td><td>2</td><td>Large</td><td>20</td><td>Large</td><td>-3</td><td>Large</td><td>29</td><td>Large</td></tr><tr><td>Net interest expense</td><td>16</td><td>3.1</td><td>-2</td><td>-5.4</td><td>-143</td><td>Large</td><td>1</td><td>3.8</td><td>-128</td><td>-17.8</td></tr><tr><td>Income before income tax expense</td><td>73</td><td>4.7</td><td>11</td><td>13.1</td><td>40</td><td>62.5</td><td>-2</td><td>-9.1</td><td>122</td><td>7.9</td></tr><tr><td>Income tax expense</td><td>35</td><td>6.7</td><td>16</td><td>84.2</td><td>34</td><td>82.9</td><td>7</td><td>31.8</td><td>92</td><td>19.3</td></tr><tr><td>Net income for common stock</td><td>$38</td><td>3.7%</td><td>$-5</td><td>-7.7%</td><td>$6</td><td>26.1%</td><td>$-9</td><td>Large</td><td>$30</td><td>2.8%</td></tr></table>
(a) Includes parent company and consolidation adjustments. (b) Represents the consolidated financial results of Con Edison and its businesses.
<table><tr><td></td><td colspan="3"> Twelve Months Ended December 31, 2014</td><td></td><td colspan="3"> Twelve Months Ended December 31, 2013</td><td></td><td></td></tr><tr><td> (Millions of Dollars)</td><td> Electric</td><td> Gas</td><td> Steam</td><td> 2014 Total</td><td> Electric</td><td> Gas</td><td> Steam</td><td> 2013 Total</td><td>2014-2013 Variation</td></tr><tr><td>Operating revenues</td><td>$8,437</td><td>$1,721</td><td>$628</td><td>$10,786</td><td>$8,131</td><td>$1,616</td><td>$683</td><td>$10,430</td><td>$356</td></tr><tr><td>Purchased power</td><td>2,036</td><td>-</td><td>55</td><td>2,091</td><td>1,974</td><td>-</td><td>47</td><td>2,021</td><td>70</td></tr><tr><td>Fuel</td><td>180</td><td>-</td><td>105</td><td>285</td><td>174</td><td>-</td><td>146</td><td>320</td><td>-35</td></tr><tr><td>Gas purchased for resale</td><td>-</td><td>609</td><td>-</td><td>609</td><td>-</td><td>532</td><td>-</td><td>532</td><td>77</td></tr><tr><td>Other operations and maintenance</td><td>2,270</td><td>418</td><td>185</td><td>2,873</td><td>2,180</td><td>351</td><td>204</td><td>2,735</td><td>138</td></tr><tr><td>Depreciation and amortization</td><td>781</td><td>132</td><td>78</td><td>991</td><td>749</td><td>130</td><td>67</td><td>946</td><td>45</td></tr><tr><td>Taxes, other than income taxes</td><td>1,458</td><td>248</td><td>92</td><td>1,798</td><td>1,459</td><td>241</td><td>116</td><td>1,816</td><td>-18</td></tr><tr><td> Operating income</td><td>$1,712</td><td>$314</td><td>$113</td><td>$2,139</td><td>$1,595</td><td>$362</td><td>$103</td><td>$2,060</td><td>$79</td></tr></table>
reasonably possible that such matters will be resolved in the next twelve months, but we do not anticipate that the resolution of these matters would result in any material impact on our results of operations or financial position. Foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include Australia (2003 onward), Canada (2002 onward), France (2006 onward), Germany (2005 onward), Italy (2005 onward), Japan (2002 onward), Puerto Rico (2005 onward), Singapore (2003 onward), Switzerland (2006 onward) and the United Kingdom (2006 onward). Our tax returns are currently under examination in various foreign jurisdictions. The most significant foreign tax jurisdiction under examination is the United Kingdom. It is reasonably possible that such audits will be resolved in the next twelve months, but we do not anticipate that the resolution of these audits would result in any material impact on our results of operations or financial position.13. CAPITAL STOCK AND EARNINGS PER SHARE We are authorized to issue 250 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2008. The numerator for both basic and diluted earnings per share is net earnings available to common stockholders. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards. The following is a reconciliation of weighted average shares for the basic and diluted share computations for the years ending December 31 (in millions):
<table><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Weighted average shares outstanding for basic net earnings per share</td><td>227.3</td><td>235.5</td><td>243.0</td></tr><tr><td>Effect of dilutive stock options and other equity awards</td><td>1.0</td><td>2.0</td><td>2.4</td></tr><tr><td>Weighted average shares outstanding for diluted net earnings per share</td><td>228.3</td><td>237.5</td><td>245.4</td></tr></table>
For the year ended December 31, 2008, an average of 11.2 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock. For the years ended December 31, 2007 and 2006, an average of 3.1 million and 7.6 million options, respectively, were not included. During 2008, we repurchased approximately 10.8 million shares of our common stock at an average price of $68.72 per share for a total cash outlay of $737.0 million, including commissions. In April 2008, we announced that our Board of Directors authorized a $1.25 billion share repurchase program which expires December 31, 2009. Approximately $1.13 billion remains authorized under this plan.14. SEGMENT DATA We design, develop, manufacture and market orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products which include surgical supplies and instruments designed to aid in orthopaedic surgical procedures and post-operation rehabilitation. We also provide other healthcare-related services. Revenue related to these services currently represents less than 1 percent of our total net sales. We manage operations through three major geographic segments – the Americas, which is comprised principally of the United States and includes other North, Central and South American markets; Europe, which is comprised principally of Europe and includes the Middle East and Africa; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets. This structure is the basis for our reportable segment information discussed below. Management evaluates operating segment performance based upon segment operating profit exclusive of operating expenses pertaining to global operations and corporate expenses, share-based compensation expense, settlement, certain claims, acquisition, integration and other expenses, inventory step-up, in-process research and development write-offs and intangible asset amortization expense. Global operations include research, development engineering, medical education, brand management, corporate legal, finance, and human resource functions, and U. S. and Puerto Rico-based manufacturing operations and logistics. Intercompany transactions have been eliminated from segment operating profit. Management reviews accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets by reportable segment exclusive of U. S and Puerto Rico-based manufacturing operations and logistics and corporate assets. |
2,013 | In which years is Other comprehensive income before reclassifications greater than Net current-period other comprehensive income (for Changes related to cash flow derivative hedges)? | The fair value of the PSU award at the date of grant is amortized to expense over the performance period, which is typically three years after the date of the award, or upon death, disability or reaching the age of 58. As of December 31, 2017, PMI had $34 million of total unrecognized compensation cost related to non-vested PSU awards. This cost is recognized over a weighted-average performance cycle period of two years, or upon death, disability or reaching the age of 58. During the years ended December 31, 2017, and 2016, there were no PSU awards that vested. PMI did not grant any PSU awards during 2015. Note 10. Earnings per Share:Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are participating securities and therefore are included in PMI’s earnings per share calculation pursuant to the two-class method. Basic and diluted earnings per share (“EPS”) were calculated using the following:
<table><tr><td></td><td>For the Years Ended December 31,</td></tr><tr><td>(in millions)</td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Net earnings attributable to PMI</td><td>$6,035</td><td>$6,967</td><td>$6,873</td></tr><tr><td>Less distributed and undistributed earnings attributable to share-based payment awards</td><td>14</td><td>19</td><td>24</td></tr><tr><td>Net earnings for basic and diluted EPS</td><td>$6,021</td><td>$6,948</td><td>$6,849</td></tr><tr><td>Weighted-average shares for basic EPS</td><td>1,552</td><td>1,551</td><td>1,549</td></tr><tr><td>Plus contingently issuable performance stock units (PSUs)</td><td>1</td><td>—</td><td>—</td></tr><tr><td>Weighted-average shares for diluted EPS</td><td>1,553</td><td>1,551</td><td>1,549</td></tr></table>
For the 2017, 2016 and 2015 computations, there were no antidilutive stock options. Notes to the Consolidated Financial Statements income (loss). Refer to Note 14. Fair Value Measurements and Derivative Instruments for further discussion. For the years ended December 31, 2014 and December 31, 2013, we did not record an impairment of goodwill for our reporting units. Accumulated goodwill impairment losses as of December 31, 2015 were $443.0 million attributable to our Pullmantur reporting unit. NOTE 4. INTANGIBLE ASSETS Intangible assets are reported in Other assets in our consolidated balance sheets and consist of the following (in thousands):
<table><tr><td></td><td>2015</td><td>2014</td></tr><tr><td>Indefinite-life intangible asset—Pullmantur trademarks and trade names</td><td>$188,038</td><td>$214,112</td></tr><tr><td>Impairment charge</td><td>-174,285</td><td>—</td></tr><tr><td>Foreign currency translation adjustment</td><td>-13,753</td><td>-26,074</td></tr><tr><td>Total</td><td>$—</td><td>$188,038</td></tr></table>
As described in Note 3. Goodwill, the increased challenges facing Pullmantur’s Latin American strategy led to our decision to significantly change Pullmantur’s strategy from growing the brand through vessel transfers to a right-sizing strategy causing us to negatively adjust our cash flow projections for the Pullmantur reporting unit. As a result, during the third quarter of 2015, we performed an interim impairment evaluation of Pullmantur’s trademarks and trade names using a discounted cash flow model and the relief-from-royalty method to compare the fair value of these indefinite-lived intangible assets to its carrying value. We used a discount rate comparable to the rate used in valuing the Pullmantur reporting unit in our goodwill impairment test. Based on our updated cash flow projections, we determined that the fair value of Pullmantur’s trademarks and trade names no longer exceeded their carrying value. Accordingly, we recognized an impairment charge of approximately $174.3 million to write down trademarks and trade names to their fair value. The charge reflects the full carrying amount of the trademark and trade names leaving Pullmantur with no intangible assets on its books. This impairment charge was recognized in earnings during the third quarter of 2015 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). Refer to Note 14. Fair Value Measurements and Derivative Instruments for further discussion. For the years ended December 31, 2014 and December 31, 2013, we did not record an impairment of Pullmantur’s trademark and trade names. Finite-life intangible assets had a net carrying amount of zero as of December 31, 2015, December 31, 2014 and December 31, 2013. NOTE 5. PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands):
<table><tr><td></td><td>2015</td><td>2014</td></tr><tr><td>Ships</td><td>$22,102,025</td><td>$21,620,336</td></tr><tr><td>Ship improvements</td><td>2,019,294</td><td>1,904,524</td></tr><tr><td>Ships under construction</td><td>734,998</td><td>561,779</td></tr><tr><td>Land, buildings and improvements, including leasehold improvements and port facilities</td><td>337,109</td><td>303,394</td></tr><tr><td>Computer hardware and software, transportation equipment and other</td><td>1,025,264</td><td>889,579</td></tr><tr><td>Total property and equipment</td><td>26,218,690</td><td>25,279,612</td></tr><tr><td>Less—accumulated depreciation and amortization</td><td>-7,440,912</td><td>-7,085,985</td></tr><tr><td></td><td>$18,777,778</td><td>$18,193,627</td></tr></table>
Ships under construction include progress payments for the construction of new ships as well as planning, design, interest and other associated costs. We capitalized interest costs of $26.5 million, $28.8 million and $17.9 million for the years 2015, 2014 and 2013, respectively. We review our long-lived assets for impairment whenever events or changes in circumstances indicate potential impairment. In conjunction with performing the two-step goodwill impairment test for the Pullmantur reporting unit, we identified that the estimated fair value of certain long-lived assets, consisting of two ships and three aircraft were less than their carrying values. As a result of this determination, we evaluated these assets pursuant to our long-lived asset impairment test. The decision to significantly reduce our exposure to the Latin American market negatively impacted the expected undiscounted cash flows of these vessels and aircraft and resulted in an impairment charge of $113.2 million to write down these assets to their estimated fair values. This impairment charge was recognized in earnings during the third quarter of 2015 and is reported within Impairment of Pullmantur related assets within our consolidated statements of comprehensive income (loss). Additionally, during 2013, the fair value of Pullmantur’s aircraft were determined to be less than their carrying value which led to a restructuring related impairment charge of $13.5 million. Furthermore, Pullmantur’s non-core businesses met the accounting criteria to be classified as held for sale during the fourth quarter of 2013 which led to restructuring related impairment charges of $18.2 million to adjust the carrying value of property and equipment held for sale to its fair value, less cost to sell. These impairment charges were reported within Restructuring and related impairment charges in our consolidated statements of comprehensive income (loss). Notes to the Consolidated Financial Statements << 84 >> | 2015 ANNUAL REPORT NOTE 13. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table presents the changes in accumulated other comprehensive income (loss) by component for the years ended December 31, 2015 and 2014 (in thousands):
<table><tr><td></td><td>Changes related to cash flow derivative hedges</td><td>Changes in definedbenefit plans</td><td>Foreign currency translation adjustments</td><td>Accumulated other comprehensive income (loss)</td></tr><tr><td>Accumulated comprehensive loss at January 1, 2013</td><td>$-84,505</td><td>$-34,823</td><td>$-15,188</td><td>$-134,516</td></tr><tr><td>Other comprehensive income before reclassifications</td><td>188,073</td><td>8,240</td><td>1,529</td><td>197,842</td></tr><tr><td>Amounts reclassified from accumulated other comprehensive income (loss)</td><td>-60,244</td><td>2,589</td><td>—</td><td>-57,655</td></tr><tr><td>Net current-period other comprehensive income</td><td>127,829</td><td>10,829</td><td>1,529</td><td>140,187</td></tr><tr><td>Accumulated comprehensive income (loss) at January 1, 2014</td><td>43,324</td><td>-23,994</td><td>-13,659</td><td>5,671</td></tr><tr><td>Other comprehensive loss before reclassifications</td><td>-919,094</td><td>-8,937</td><td>-28,099</td><td>-956,130</td></tr><tr><td>Amounts reclassified from accumulated other comprehensive income (loss)</td><td>49,744</td><td>1,724</td><td>1,997</td><td>53,465</td></tr><tr><td>Net current-period other comprehensive loss</td><td>-869,350</td><td>-7,213</td><td>-26,102</td><td>-902,665</td></tr><tr><td>Accumulated comprehensive loss at January 1, 2015</td><td>-826,026</td><td>-31,207</td><td>-39,761</td><td>-896,994</td></tr><tr><td>Other comprehensive (loss) income before reclassifications</td><td>-697,671</td><td>3,053</td><td>-25,952</td><td>-720,570</td></tr><tr><td>Amounts reclassified from accumulated other comprehensive income (loss)</td><td>291,624</td><td>1,707</td><td>-4,200</td><td>289,131</td></tr><tr><td>Net current-period other comprehensive (loss) income</td><td>-406,047</td><td>4,760</td><td>-30,152</td><td>-431,439</td></tr><tr><td>Accumulated comprehensive loss at December 31, 2015</td><td>$-1,232,073</td><td>$-26,447</td><td>$-69,913</td><td>$-1,328,433</td></tr></table>
The following table presents reclassifications out of accumulated other comprehensive income (loss) for the years ended December 31, 2015 and 2014 (in thousands): |
3,146 | What's the sum of Distribution fees in the range of 1000 and 2000 in 2011? (in million) | Consolidated Results of Operations Year Ended December 31, 2011 Compared to Year Ended December 31, 2010 Management believes that operating measures, which exclude net realized gains or losses; the market impact on variable annuity guaranteed living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis. See our discussion on the use of these non-GAAP measures in the Overview section above. The following table presents our consolidated results of operations:
<table><tr><td> </td><td colspan="6">Years Ended December 31,</td><td></td><td></td></tr><tr><td> </td><td colspan="3">2011 </td><td colspan="3">2010 </td><td></td><td></td></tr><tr><td> </td><td>GAAP</td><td>Less: Adjustments -1</td><td>Operating </td><td>GAAP</td><td>Less: Adjustments -1</td><td>Operating </td><td colspan="2">Operating Change</td></tr><tr><td> </td><td colspan="8">(in millions)</td></tr><tr><td> Revenues</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Management and financial advice fees</td><td>$4,537</td><td>$-49</td><td>$4,586</td><td>$3,784</td><td>$-38</td><td>$3,822</td><td>$764</td><td>20%</td></tr><tr><td>Distribution fees</td><td>1,573</td><td>—</td><td>1,573</td><td>1,447</td><td>—</td><td>1,447</td><td>126</td><td>9</td></tr><tr><td>Net investment income</td><td>2,046</td><td>97</td><td>1,949</td><td>2,309</td><td>308</td><td>2,001</td><td>-52</td><td>-3</td></tr><tr><td>Premiums</td><td>1,220</td><td>—</td><td>1,220</td><td>1,179</td><td>—</td><td>1,179</td><td>41</td><td>3</td></tr><tr><td>Other revenues</td><td>863</td><td>94</td><td>769</td><td>863</td><td>125</td><td>738</td><td>31</td><td>4</td></tr><tr><td>Total revenues</td><td>10,239</td><td>142</td><td>10,097</td><td>9,582</td><td>395</td><td>9,187</td><td>910</td><td>10</td></tr><tr><td>Banking and deposit interest expense</td><td>47</td><td>—</td><td>47</td><td>70</td><td>—</td><td>70</td><td>-23</td><td>-33</td></tr><tr><td>Total net revenues</td><td>10,192</td><td>142</td><td>10,050</td><td>9,512</td><td>395</td><td>9,117</td><td>933</td><td>10</td></tr><tr><td> Expenses</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>2,497</td><td>—</td><td>2,497</td><td>2,065</td><td>—</td><td>2,065</td><td>432</td><td>21</td></tr><tr><td>Interest credited to fixed accounts</td><td>853</td><td>—</td><td>853</td><td>909</td><td>—</td><td>909</td><td>-56</td><td>-6</td></tr><tr><td>Benefits, claims, losses and settlement expenses</td><td>1,557</td><td>67</td><td>1,490</td><td>1,750</td><td>9</td><td>1,741</td><td>-251</td><td>-14</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>618</td><td>-8</td><td>626</td><td>127</td><td>16</td><td>111</td><td>515</td><td>NM</td></tr><tr><td>Interest and debt expense</td><td>317</td><td>221</td><td>96</td><td>290</td><td>181</td><td>109</td><td>-13</td><td>-12</td></tr><tr><td>General and administrative expense</td><td>2,965</td><td>116</td><td>2,849</td><td>2,737</td><td>129</td><td>2,608</td><td>241</td><td>9</td></tr><tr><td>Total expenses</td><td>8,807</td><td>396</td><td>8,411</td><td>7,878</td><td>335</td><td>7,543</td><td>868</td><td>12</td></tr><tr><td>Income from continuing operations before income tax provision</td><td>1,385</td><td>-254</td><td>1,639</td><td>1,634</td><td>60</td><td>1,574</td><td>65</td><td>4</td></tr><tr><td>Income tax provision</td><td>355</td><td>-52</td><td>407</td><td>350</td><td>-36</td><td>386</td><td>21</td><td>5</td></tr><tr><td>Income from continuing operations</td><td>1,030</td><td>-202</td><td>1,232</td><td>1,284</td><td>96</td><td>1,188</td><td>44</td><td>4</td></tr><tr><td>Loss from discontinued operations, net of tax</td><td>-60</td><td>-60</td><td>—</td><td>-24</td><td>-24</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net income</td><td>970</td><td>-262</td><td>1,232</td><td>1,260</td><td>72</td><td>1,188</td><td>44</td><td>4</td></tr><tr><td>Less: Net income (loss) attributable to non- controlling interests</td><td>-106</td><td>-106</td><td>—</td><td>163</td><td>163</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net income attributable to Ameriprise Financial</td><td>$1,076</td><td>$-156</td><td>$1,232</td><td>$1,097</td><td>$-91</td><td>$1,188</td><td>$44</td><td>4%</td></tr></table>
NM Not Meaningful. (1) Includes the elimination of management fees we earn for services provided to the CIEs and the related expense; revenues and expenses of the CIEs; net realized gains or losses; the market impact on variable annuity living benefits, net of hedges, DSIC and DAC amortization; integration and restructuring charges; and income (loss) from discontinued operations. Income tax provision is calculated using the statutory tax rate of 35% on applicable adjustments. CELANESE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Interest Expense
<table><tr><td></td><td colspan="2">Successor</td><td colspan="2">Predecessor</td></tr><tr><td></td><td>YearEndedDecember 31,2005</td><td>Nine MonthsEndedDecember 31,2004</td><td>Three MonthsEndedMarch31,2004</td><td>Year EndedDecember 31,2003</td></tr><tr><td></td><td colspan="4">(in $millions)</td></tr><tr><td>Accelerated amortization of deferredfinancing costs on early redemption and prepayment ofdebt</td><td>28</td><td>89</td><td>—</td><td>—</td></tr><tr><td>Premiumpaid on early redemption ofdebt</td><td>74</td><td>21</td><td>—</td><td>—</td></tr><tr><td>Otherinterestexpense</td><td>285</td><td>190</td><td>6</td><td>49</td></tr><tr><td>Totalinterestexpense</td><td>387</td><td>300</td><td>6</td><td>49</td></tr></table>
Senior Credit Facilities. As of December 31, 2005, the senior credit facilities consist of a term loan facility, a revolving credit facility and a credit-linked revolving facility. The term loan facility consists of commitments of $1,386 million and u273 million, both maturing in 2011. The revolving credit facility, through a syndication of banks, provides for borrowings of up to $600 million, including the availability of letters of credit in U. S. dollars and euros and for borrowings on same-day notice. In January 2005, the Company amended and restated its senior credit facilities and increased the term loan facility from $624 million to $1,750 million (including u275 million) and increased the revolving credit facility from $380 million to $600 million. As of December 31, 2005, $64 million of letters of credit have been issued under the revolving credit facility and $536 million remained available for borrowing. In addition, the Company has a $228 million credit-linked revolving facility, which matures in 2009. The credit-linked revolving facility includes borrowing capacity available for letters of credit. As of December 31, 2005, there were $199 million of letters of credit issued under the credit-linked revolving facility and $29 million remained available for borrowing. Substantially all of the assets of Celanese Holdings LLC (‘‘Celanese Holdings’’), the direct parent of BCP Crystal US Holdings Corp. (‘‘BCP Crystal’’), and, subject to certain exceptions, substantially all of its existing and future U. S. subsidiaries, referred to as U. S. Guarantors, secure these facilities. The borrowings under the revolving senior credit facility bear interest at a rate equal to an applicable margin plus, at the borrower’s option, either a base rate or a LIBOR rate. The applicable margin for a revolving facility borrowing under the base rate option is 1.50% and for the LIBOR option, 2.50% (in each case, subject to a step-down based on a performance test, as defined). In November 2005, the Company amended its senior credit facilities which lowered the margin over LIBOR on the U. S. dollar denominated portion of the term loan facility from 2.25% to 2.00%. In addition, a further reduction of the interest rate to LIBOR plus 1.75% is allowed if certain conditions are met. BCP Crystal may voluntarily repay outstanding loans under the senior credit facility at any time without premium or penalty, other than customary ‘‘breakage’’ costs with respect to LIBOR loans. Senior Subordinated Notes. During June and July 2004, the Company issued $1,225 million and u200 million in senior subordinated notes for proceeds of $1,475 million, which included $4 million in premiums. All of BCP Crystal’s U. S. domestic, wholly owned subsidiaries that guarantee BCP Crystal’s obligations under the senior credit facilities guarantee the senior subordinated notes on an unsecured senior subordinated basis. In February 2005, $521 million of the net proceeds of the offering of the Company’s Series A common stock were used to redeem a portion of the senior subordinated notes and $51 million was used to pay the premium associated with the redemption. Baroness Philippine de Rothschild announced an agreement to maintain equal ownership of Opus One. Opus One produces fine wines at its Napa Valley winery. The acquisition of Robert Mondavi supports the Company’s strategy of strengthening the breadth of its portfolio across price segments to capitalize on the overall growth in the premium, super-premium and fine wine categories. The Company believes that the acquired Robert Mondavi brand names have strong brand recognition globally. The vast majority of sales from these brands are generated in the United States. The Company is leveraging the Robert Mondavi brands in the United States through its selling, marketing and distribution infrastructure. The Company also intends to further expand distribution for the Robert Mondavi brands in Europe through its Constellation Europe infrastructure. The Robert Mondavi acquisition supports the Company’s strategy of growth and breadth across categories and geographies, and strengthens its competitive position in its core markets. The Robert Mondavi acquisition provides the Company with a greater presence in the growing premium, super-premium and fine wine sectors within the United States and the ability to capitalize on the broader geographic distribution in strategic international markets. In particular, the Company believes there are growth opportunities for premium, super-premium and fine wines in the United Kingdom and other “new world” wine markets. Total consideration paid in cash to the Robert Mondavi shareholders was $1,030.7 million. Additionally, the Company incurred direct acquisition costs of $12.0 million. The purchase price was financed with borrowings under the Company’s 2004 Credit Agreement (as defined in Note 9). In accordance with the purchase method of accounting, the acquired net assets are recorded at fair value at the date of acquisition. The purchase price was based primarily on the estimated future operating results of the Robert Mondavi business, including the factors described above, as well as an estimated benefit from operating cost synergies. The results of operations of the Robert Mondavi business are reported in the Constellation Wines segment and have been included in the Consolidated Statements of Income since the acquisition date. The following table summarizes the fair values of the assets acquired and liabilities assumed in the Robert Mondavi acquisition at the date of acquisition, as adjusted for the final appraisal:
<table><tr><td>Current assets</td><td>$513,782</td></tr><tr><td>Property, plant and equipment</td><td>438,140</td></tr><tr><td>Other assets</td><td>124,450</td></tr><tr><td>Trademarks</td><td>138,000</td></tr><tr><td>Goodwill</td><td>634,203</td></tr><tr><td>Total assets acquired</td><td>1,848,575</td></tr><tr><td>Current liabilities</td><td>310,919</td></tr><tr><td>Long-term liabilities</td><td>494,995</td></tr><tr><td>Total liabilities assumed</td><td>805,914</td></tr><tr><td>Net assets acquired</td><td>$1,042,661</td></tr></table>
The trademarks are not subject to amortization. None of the goodwill is expected to be deductible for tax purposes. Following the Robert Mondavi acquisition, the Company sold certain of the acquired vineyard properties and related assets, investments accounted for under the equity method, and other winery properties and related assets, during the years ended February 28, 2006, and February 28, 2005. The Company realized net proceeds of $170.8 million from the sale of these assets during the year ended February 28, 2006. Amounts realized during the year ended February 28, 2005, were not material. No gain or loss has been recognized upon the sale of these assets. HARDY ACQUISITION – On March 27, 2003, the Company acquired control of BRL Hardy Limited, now known as Hardy Wine Company Limited (“Hardy”), and on April 9, 2003, the Company completed its acquisition of all of Hardy’s outstanding capital stock. As a result of the acquisition of Hardy, the Company also acquired the remaining 50% ownership of Pacific Wine Partners LLC (“PWP”), the joint venture the Company established with Hardy in July 2001. The acquisition of Hardy along with the remaining interest in PWP is referred to together as the “Hardy Acquisition. ” Through this acquisition, the Company acquired one of Australia’s largest wine producers with interests in wineries and vineyards in most of Australia’s major wine regions as well as New Zealand and the United States and Hardy’s marketing and sales operations in the United Kingdom. In October 2005, PWP was merged into another subsidiary of the Company. Total consideration paid in cash and Class A Common Stock to the Hardy shareholders was $1,137.4 million. Additionally, the Company recorded direct acquisition costs of $17.2 million. The acquisition date for accounting purposes is March 27, 2003. The Company has recorded a $1.6 million reduction in the purchase price to reflect imputed interest between the accounting acquisition date and the final payment of consideration. This charge is included as interest expense in the Consolidated Statement of Income for the year ended February 29, 2004. The cash portion of the purchase price paid to the Hardy shareholders and optionholders ($1,060.2 million) was financed with $660.2 million of borrowings under the Company’s then existing credit agreement and $400.0 million of borrowings under the Company’s then existing bridge loan agreement. Additionally, the Company issued 6,577,826 shares of the Company’s Class A Common Stock, which were valued at $77.2 million based on the simple average of the closing market price of the Company’s Class A Common Stock beginning two days before and ending two days after April 4, 2003, the day the Hardy shareholders elected the form of consideration they wished to receive. The purchase price was based primarily on a discounted cash flow analysis that contemplated, among other things, the value of a broader geographic distribution in strategic international markets and a presence in the important Australian winemaking regions. The Company and Hardy have complementary businesses that share a common growth orientation and operating philosophy. The Hardy Acquisition supports the Company’s strategy of growth and breadth across categories |
1 | What is the percentage of all Qualifying Accounting Hedges-2 that are positive to the total amount, in 2010 for Gross Derivative Assets? | NOTE 3 Trading Account Assets and Liabilities The table below presents the components of trading account assets and liabilities at December 31, 2010 and 2009.
<table><tr><td></td><td colspan="2"> December 31</td></tr><tr><td>(Dollars in millions)</td><td> 2010</td><td>2009</td></tr><tr><td> Trading account assets</td><td></td><td></td></tr><tr><td>U.S. government and agency securities<sup>-1</sup></td><td>$60,811</td><td>$44,585</td></tr><tr><td>Corporate securities, trading loans and other</td><td>49,352</td><td>57,009</td></tr><tr><td>Equity securities</td><td>32,129</td><td>33,562</td></tr><tr><td>Non-U.S.sovereign debt</td><td>33,523</td><td>28,143</td></tr><tr><td>Mortgage trading loans and asset-backed securities</td><td>18,856</td><td>18,907</td></tr><tr><td> Total trading account assets</td><td>$194,671</td><td>$182,206</td></tr><tr><td> Trading account liabilities</td><td></td><td></td></tr><tr><td>U.S. government and agency securities</td><td>$29,340</td><td>$26,519</td></tr><tr><td>Equity securities</td><td>15,482</td><td>18,407</td></tr><tr><td>Non-U.S.sovereign debt</td><td>15,813</td><td>12,897</td></tr><tr><td>Corporate securities and other</td><td>11,350</td><td>7,609</td></tr><tr><td> Total trading account liabilities</td><td>$71,985</td><td>$65,432</td></tr></table>
(1) Includes $29.7 billion and $23.5 billion at December 31, 2010 and 2009 of GSE obligations. NOTE 4 Derivatives Derivative Balances Derivatives are entered into on behalf of customers, for trading, as economic hedges or as qualifying accounting hedges. The Corporation enters into derivatives to facilitate client transactions, for principal trading purposes and to manage risk exposures. For additional information on the Corporation’s derivatives and hedging activities, see Note 1 – Summary of Significant Accounting Principles. The table below identifies derivative instruments included on the Corporation’s Consolidated Balance Sheet in derivative assets and liabilities at December 31, 2010 and 2009. Balances are presented on a gross basis, prior to the application of counterparty and collateral netting. Total derivative assets and liabilities are adjusted on an aggregate basis to take into consideration the effects of legally enforceable master netting agreements and have been reduced by the cash collateral applied.
<table><tr><td></td><td></td><td colspan="6">December 31, 2010</td></tr><tr><td></td><td></td><td colspan="3">Gross Derivative Assets</td><td colspan="3">Gross Derivative Liabilities</td></tr><tr><td></td><td></td><td> Trading </td><td></td><td></td><td> Trading </td><td></td><td></td></tr><tr><td></td><td></td><td> Derivatives </td><td></td><td></td><td> Derivatives </td><td></td><td></td></tr><tr><td></td><td></td><td> and </td><td> Qualifying </td><td></td><td> and </td><td> Qualifying </td><td></td></tr><tr><td></td><td> Contract/ </td><td> Economic </td><td> Accounting </td><td></td><td> Economic </td><td> Accounting </td><td></td></tr><tr><td>(Dollars in billions)</td><td> Notional<sup>-1</sup></td><td> Hedges</td><td> Hedges<sup>-2</sup></td><td>Total</td><td> Hedges</td><td> Hedges<sup>-2</sup></td><td>Total</td></tr><tr><td> Interest rate contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>$42,719.2</td><td>$1,193.9</td><td>$14.9</td><td>$1,208.8</td><td>$1,187.9</td><td>$2.2</td><td>$1,190.1</td></tr><tr><td>Futures and forwards</td><td>9.939.2</td><td>6.0</td><td>–</td><td>6.0</td><td>4.7</td><td>–</td><td>4.7</td></tr><tr><td>Written options</td><td>2,887.7</td><td>–</td><td>–</td><td>–</td><td>82.8</td><td>–</td><td>82.8</td></tr><tr><td>Purchased options</td><td>3,026.2</td><td>88.0</td><td>–</td><td>88.0</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Foreign exchange contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>630.1</td><td>26.5</td><td>3.7</td><td>30.2</td><td>28.5</td><td>2.1</td><td>30.6</td></tr><tr><td>Spot, futures and forwards</td><td>2,652.9</td><td>41.3</td><td>–</td><td>41.3</td><td>44.2</td><td>–</td><td>44.2</td></tr><tr><td>Written options</td><td>439.6</td><td>–</td><td>–</td><td>–</td><td>13.2</td><td>–</td><td>13.2</td></tr><tr><td>Purchased options</td><td>417.1</td><td>13.0</td><td>–</td><td>13.0</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Equity contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>42.4</td><td>1.7</td><td>–</td><td>1.7</td><td>2.0</td><td>–</td><td>2.0</td></tr><tr><td>Futures and forwards</td><td>78.8</td><td>2.9</td><td>–</td><td>2.9</td><td>2.1</td><td>–</td><td>2.1</td></tr><tr><td>Written options</td><td>242.7</td><td>–</td><td>–</td><td>–</td><td>19.4</td><td>–</td><td>19.4</td></tr><tr><td>Purchased options</td><td>193.5</td><td>21.5</td><td>–</td><td>21.5</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Commodity contracts</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Swaps</td><td>90.2</td><td>8.8</td><td>0.2</td><td>9.0</td><td>9.3</td><td>–</td><td>9.3</td></tr><tr><td>Futures and forwards</td><td>413.7</td><td>4.1</td><td>–</td><td>4.1</td><td>2.8</td><td>–</td><td>2.8</td></tr><tr><td>Written options</td><td>86.3</td><td>–</td><td>–</td><td>–</td><td>6.7</td><td>–</td><td>6.7</td></tr><tr><td>Purchased options</td><td>84.6</td><td>6.6</td><td>–</td><td>6.6</td><td>–</td><td>–</td><td>–</td></tr><tr><td> Credit derivatives</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased credit derivatives:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit default swaps</td><td>2,184.7</td><td>69.8</td><td>–</td><td>69.8</td><td>34.0</td><td>–</td><td>34.0</td></tr><tr><td>Total return swaps/other</td><td>26.0</td><td>0.9</td><td>–</td><td>0.9</td><td>0.2</td><td>–</td><td>0.2</td></tr><tr><td>Written credit derivatives:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Credit default swaps</td><td>2,133.5</td><td>33.3</td><td>–</td><td>33.3</td><td>63.2</td><td>–</td><td>63.2</td></tr><tr><td>Total return swaps/other</td><td>22.5</td><td>0.5</td><td>–</td><td>0.5</td><td>0.5</td><td>–</td><td>0.5</td></tr><tr><td>Gross derivative assets/liabilities</td><td></td><td>$1,518.8</td><td>$18.8</td><td>$1,537.6</td><td>$1,501.5</td><td>$4.3</td><td>$1,505.8</td></tr><tr><td>Less: Legally enforceable master netting agreements</td><td></td><td></td><td></td><td>-1,406.3</td><td></td><td></td><td>-1,406.3</td></tr><tr><td>Less: Cash collateral applied</td><td></td><td></td><td></td><td>-58.3</td><td></td><td></td><td>-43.6</td></tr><tr><td> Total derivative assets/liabilities</td><td></td><td></td><td></td><td>$73.0</td><td></td><td></td><td>$55.9</td></tr></table>
(1) Represents the total contract/notional amount of derivative assets and liabilities outstanding. (2) Excludes $4.1 billion of long-term debt designated as a hedge of foreign currency risk. Core Net Interest Income We manage core net interest income which is reported net interest income on a FTE basis adjusted for the impact of market-based activities. As discussed in the GBAM business segment section beginning on page 49, we evaluate our market-based results and strategies on a total market-based revenue approach by combining net interest income and noninterest income for GBAM. In addition, 2009 is presented on a managed basis which is adjusted for loans that we originated and subsequently sold into credit card securitizations. Noninterest income, rather than net interest income and provision for credit losses, was recorded for securitized assets as we are compensated for servicing the securitized assets and we recorded servicing income and gains or losses on securitizations, where appropriate.2010 is presented in accordance with new consolidation guidance. An analysis of core net interest income, core average earning assets and core net interest yield on earning assets, all of which adjust for the impact of these two non-core items from reported net interest income on a FTE basis, is shown below. We believe the use of this non-GAAP presentation provides additional clarity in assessing our results.
<table><tr><td>(Dollars in millions)</td><td>2010</td><td>2009</td></tr><tr><td> Net interest income<sup>-1</sup></td><td></td><td></td></tr><tr><td>As reported<sup>-2</sup></td><td>$52,693</td><td>$48,410</td></tr><tr><td>Impact of market-based net interest income<sup>-3</sup></td><td>-4,430</td><td>-6,117</td></tr><tr><td>Core net interest income</td><td>48,263</td><td>42,293</td></tr><tr><td>Impact of securitizations<sup>-4</sup></td><td>n/a</td><td>10,524</td></tr><tr><td> Core net interest income</td><td>48,263</td><td>52,817</td></tr><tr><td> Average earning assets</td><td></td><td></td></tr><tr><td>As reported</td><td>1,897,573</td><td>1,830,193</td></tr><tr><td>Impact of market-based earning assets<sup>-3</sup></td><td>-504,360</td><td>-481,376</td></tr><tr><td>Core average earning assets</td><td>1,393,213</td><td>1,348,817</td></tr><tr><td>Impact of securitizations<sup>-5</sup></td><td>n/a</td><td>83,640</td></tr><tr><td> Core average earning assets</td><td>1,393,213</td><td>1,432,457</td></tr><tr><td> Net interest yield contribution<sup>-1</sup></td><td></td><td></td></tr><tr><td>As reported<sup>-2</sup></td><td>2.78%</td><td>2.65%</td></tr><tr><td>Impact of market-based activities<sup>-3</sup></td><td>0.68</td><td>0.49</td></tr><tr><td>Core net interest yield on earning assets</td><td>3.46</td><td>3.14</td></tr><tr><td>Impact of securitizations</td><td>n/a</td><td>0.55</td></tr><tr><td> Core net interest yield on earning assets</td><td>3.46%</td><td>3.69%</td></tr></table>
(1) FTE basis (2) Balance and calculation include fees earned on overnight deposits placed with the Federal Reserve of $368 million and $379 million for 2010 and 2009. (3) Represents the impact of market-based amounts included in GBAM. (4) Represents the impact of securitizations utilizing actual bond costs which is different from the business segment view which utilizes funds transfer pricing methodologies. (5) Represents average securitized loans less accrued interest receivable and certain securitized bonds retained. n/a = not applicable Core net interest income decreased $4.6 billion to $48.3 billion for 2010 compared to 2009. The decrease was driven by lower loan levels compared to managed loan levels in 2009, and lower yields for the discretionary and credit card portfolios. These impacts were partially offset by lower rates on deposits. Core average earning assets decreased $39.2 billion to $1.4 trillion for 2010 compared to 2009. The decrease was primarily due to lower commercial loan levels and lower consumer loan levels compared to managed consumer loan levels in 2009. The impact was partially offset by increased securities levels in 2010. Core net interest yield decreased 23 bps to 3.46 percent for 2010 compared to 2009 due to the factors noted above. The fair value of variable rate debt approximates the carrying value since interest rates are variable and, thus, approximate current market rates. Free Cash Flow We define free cash flow, which is not a measure determined in accordance with Generally Accepted Accounting Principles in the United States, as cash provided by operating activities less purchases of property and equipment plus proceeds from sales of property and equipment as presented in our Consolidated Statements of Cash Flows. Our free cash flow for the years ended December 31, 2005, 2004 and 2003 is calculated as follows (in millions): |
2,017 | Which year is Change, net of taxes the most? | 7. INCENTIVE PLANS Discretionary Annual Incentive Awards Citigroup grants immediate cash bonus payments and various forms of immediate and deferred awards as part of its discretionary annual incentive award program involving a large segment of Citigroup’s employees worldwide. Most of the shares of common stock issued by Citigroup as part of its equity compensation programs are to settle the vesting of the stock components of these awards. Discretionary annual incentive awards are generally awarded in the first quarter of the year based on the previous year’s performance. Awards valued at less than U. S. $100,000 (or the local currency equivalent) are generally paid entirely in the form of an immediate cash bonus. Pursuant to Citigroup policy and/or regulatory requirements, certain employees and officers are subject to mandatory deferrals of incentive pay and generally receive 25%– 60% of their awards in a combination of restricted or deferred stock, deferred cash stock units or deferred cash. Discretionary annual incentive awards to many employees in the EU are subject to deferral requirements regardless of the total award value, with at least 50% of the immediate incentive delivered in the form of a stock payment award subject to a restriction on sale or transfer (generally, for 12 months). Deferred annual incentive awards may be delivered in the form of one or more award types: a restricted or deferred stock award under Citi’s Capital Accumulation Program (CAP), or a deferred cash stock unit award and/or a deferred cash award under Citi’s Deferred Cash Award Plan. The applicable mix of awards may vary based on the employee’s minimum deferral requirement and the country of employment. Subject to certain exceptions (principally, for retirement-eligible employees), continuous employment within Citigroup is required to vest in CAP, deferred cash stock unit and deferred cash awards. Post employment vesting by retirement-eligible employees and participants who meet other conditions is generally conditioned upon their refraining from competition with Citigroup during the remaining vesting period, unless the employment relationship has been terminated by Citigroup under certain conditions. Generally, the deferred awards vest in equal annual installments over three- or four-year periods. Vested CAP awards are delivered in shares of common stock. Deferred cash awards are payable in cash and, except as prohibited by applicable regulatory guidance, earn a fixed notional rate of interest that is paid only if and when the underlying principal award amount vests. Deferred cash stock unit awards are payable in cash at the vesting value of the underlying stock. Generally, in the EU, vested CAP shares are subject to a restriction on sale or transfer after vesting, and vested deferred cash awards and deferred cash stock units are subject to hold back (generally, for 12 months in each case). Unvested CAP, deferred cash stock units and deferred cash awards are subject to one or more clawback provisions that apply in certain circumstances, including gross misconduct. CAP and deferred cash stock unit awards, made to certain employees, are subject to a formulaic performancebased vesting condition pursuant to which amounts otherwise scheduled to vest will be reduced based on the amount of any pretax loss in the participant’s business in the calendar year preceding the scheduled vesting date. A minimum reduction of 20% applies for the first dollar of loss for CAP and deferred cash stock unit awards. In addition, deferred cash awards are subject to a discretionary performance-based vesting condition under which an amount otherwise scheduled to vest may be reduced in the event of a “material adverse outcome” for which a participant has “significant responsibility. ” These awards are also subject to an additional clawback provision pursuant to which unvested awards may be canceled if the employee engaged in misconduct or exercised materially imprudent judgment, or failed to supervise or escalate the behavior of other employees who did. Sign-on and Long-Term Retention Awards Stock awards and deferred cash awards may be made at various times during the year as sign-on awards to induce new hires to join Citi or to highpotential employees as long-term retention awards. Vesting periods and other terms and conditions pertaining to these awards tend to vary by grant. Generally, recipients must remain employed through the vesting dates to vest in the awards, except in cases of death, disability or involuntary termination other than for gross misconduct. These awards do not usually provide for post employment vesting by retirement-eligible participants. Outstanding (Unvested) Stock Awards A summary of the status of unvested stock awards granted as discretionary annual incentive or sign-on and long-term retention awards is presented below:
<table><tr><td>Unvested stock awards</td><td>Shares</td><td>Weighted-average grantdate fairvalue per share</td></tr><tr><td>Unvested at December 31, 2017</td><td>36,931,040</td><td>$47.89</td></tr><tr><td>Granted<sup>-1</sup></td><td>12,896,599</td><td>73.87</td></tr><tr><td>Canceled</td><td>-1,315,456</td><td>54.50</td></tr><tr><td>Vested<sup>-2</sup></td><td>-16,783,587</td><td>49.54</td></tr><tr><td>Unvested at December 31, 2018</td><td>31,728,596</td><td>$57.30</td></tr></table>
(1) The weighted-average fair value of the shares granted during 2017 and 2016 was $59.12 and $37.35, respectively. (2) The weighted-average fair value of the shares vesting during 2018 was approximately $77.65 per share. Total unrecognized compensation cost related to unvested stock awards was $538 million at December 31, 2018. The cost is expected to be recognized over a weighted-average period of 1.7 years. 19. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) Changes in each component of Citigroup鈥檚 Accumulated other comprehensive income (loss) were as follows:
<table><tr><td>In millions of dollars</td><td>Netunrealizedgains (losses)on investment securities</td><td>Debt valuation adjustment (DVA)<sup>(1)</sup></td><td>Cash flow hedges<sup>-2</sup></td><td>Benefit plans<sup>-3</sup></td><td>Foreigncurrencytranslationadjustment (CTA), net of hedges<sup>(4)</sup></td><td>Excluded component of fair value hedges<sup>-5</sup></td><td>Accumulatedothercomprehensive income (loss)</td></tr><tr><td>Balance, December 31, 2015</td><td>$-907</td><td>$—</td><td>$-617</td><td>$-5,116</td><td>$-22,704</td><td>$—</td><td>$-29,344</td></tr><tr><td>Adjustment to opening balance, netof taxes<sup>-1</sup></td><td>$—</td><td>$-15</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$-15</td></tr><tr><td>Adjusted balance, beginning of period</td><td>$-907</td><td>$-15</td><td>$-617</td><td>$-5,116</td><td>$-22,704</td><td>$—</td><td>$-29,359</td></tr><tr><td>Other comprehensive income beforereclassifications</td><td>$531</td><td>$-335</td><td>$-88</td><td>$-208</td><td>$-2,802</td><td>$—</td><td>$-2,902</td></tr><tr><td>Increase (decrease) due to amountsreclassified from AOCI<sup></sup></td><td>-423</td><td>-2</td><td>145</td><td>160</td><td>—</td><td>—</td><td>-120</td></tr><tr><td>Change, net of taxes<sup></sup></td><td>$108</td><td>$-337</td><td>$57</td><td>$-48</td><td>$-2,802</td><td>$—</td><td>$-3,022</td></tr><tr><td>Balance, December 31, 2016</td><td>$-799</td><td>$-352</td><td>$-560</td><td>$-5,164</td><td>$-25,506</td><td>$—</td><td>$-32,381</td></tr><tr><td>Adjustment to opening balance, netof taxes<sup>-6</sup></td><td>$504</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$504</td></tr><tr><td>Adjusted balance, beginning of period</td><td>$-295</td><td>$-352</td><td>$-560</td><td>$-5,164</td><td>$-25,506</td><td>$—</td><td>$-31,877</td></tr><tr><td>Impact of Tax Reform<sup>-7</sup></td><td>-223</td><td>-139</td><td>-113</td><td>-1,020</td><td>-1,809</td><td>—</td><td>-3,304</td></tr><tr><td>Other comprehensive income before reclassifications</td><td>-186</td><td>-426</td><td>-111</td><td>-158</td><td>1,607</td><td>—</td><td>726</td></tr><tr><td>Increase (decrease) due to amounts reclassified from AOCI</td><td>-454</td><td>-4</td><td>86</td><td>159</td><td>—</td><td>—</td><td>-213</td></tr><tr><td>Change, net of taxes<sup></sup></td><td>$-863</td><td>$-569</td><td>$-138</td><td>$-1,019</td><td>$-202</td><td>$—</td><td>$-2,791</td></tr><tr><td>Balance at December 31, 2017</td><td>$-1,158</td><td>$-921</td><td>$-698</td><td>$-6,183</td><td>$-25,708</td><td>$—</td><td>$-34,668</td></tr><tr><td>Adjustment to opening balance, netof taxes<sup>-8</sup></td><td>-3</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-3</td></tr><tr><td>Adjusted balance, beginning of period</td><td>$-1,161</td><td>$-921</td><td>$-698</td><td>$-6,183</td><td>$-25,708</td><td>$—</td><td>$-34,671</td></tr><tr><td>Other comprehensive income beforereclassifications</td><td>-866</td><td>1,081</td><td>-135</td><td>-240</td><td>-2,607</td><td>-57</td><td>-2,824</td></tr><tr><td>Increase (decrease) due to amountsreclassified from AOCI<sup>(9)</sup></td><td>-223</td><td>32</td><td>105</td><td>166</td><td>245</td><td>—</td><td>325</td></tr><tr><td>Change, net of taxes</td><td>$-1,089</td><td>$1,113</td><td>$-30</td><td>$-74</td><td>$-2,362</td><td>$-57</td><td>$-2,499</td></tr><tr><td>Balance at December 31, 2018</td><td>$-2,250</td><td>$192</td><td>$-728</td><td>$-6,257</td><td>$-28,070</td><td>$-57</td><td>$-37,170</td></tr></table>
(1)Changes in DVA are reflected as a component of AOCI, pursuant to the adoption of only the provisions of ASU 2016-01 relating to the presentation of DVA on fair value option liabilities. See Note 1 to the Consolidated Financial Statements. (2)Primarily driven by Citi鈥檚 pay fixed/receive floating interest rate swap programs that hedge the floating rates on liabilities. (3)Primarily reflects adjustments based on the quarterly actuarial valuations of Citi鈥檚 significant pension and postretirement plans, annual actuarial valuations of all other plans and amortization of amounts previously recognized in Other comprehensive income. (4)Primarily reflects the movements in (by order of impact) the Brazilian real, Indian rupee, Mexican peso, and Australian dollar against the U. S. dollar and changes in related tax effects and hedges for the year ended Primarily reflects the movements in (by order of impact) the Brazilian real, Indian rupee, Mexican peso, and Australian dollar against the U. S. dollar and changes in related tax effects and hedges for the year ended December聽31, 2018. Primarily reflects the movements in (by order of impact) the Euro, Mexican peso, Polish zloty and Korean won against the U. S. dollar and changes in related tax effects and hedges for the year ended December聽31, 2017. Primarily reflects the movements in (by order of impact) the Mexican peso, Euro, British pound and Indian rupee against the U. S. dollar and changes in related tax effects and hedges for the year ended December聽31, 2016. (5)Beginning in the first quarter of 2018, changes in the excluded component of fair value hedges are reflected as a component of AOCI, pursuant to the early adoption of ASU No.2017-12, Targeted Improvements to Accounting for Hedging Activities. See Note 1 of the Consolidated Financial Statements for further information regarding this change. (6)In the second quarter of 2017, Citi early adopted ASU No.2017-08. 聽Upon adoption, a cumulative effect adjustment was recorded to reduce Retained earnings, effective January 1, 2017, for the incremental amortization of cumulative fair value hedge adjustments on callable state and municipal debt securities. See Note 1 to the Consolidated Financial Statements. (7)In the fourth quarter of 2017, Citi adopted ASU 2018-02, which transferred these amounts from AOCI to Retained earnings. See Note 1 to the Consolidated Financial Statements. (8)Citi adopted ASU 2016-01 and ASU 2018-03 on January 1, 2018. Upon adoption, a cumulative effect adjustment was recorded from AOCI to Retained earnings for net unrealized gains on former AFS equity securities. For additional information, see Note 1 to the Consolidated Financial Statements (9)Includes the impact of the release upon meeting the accounting trigger for substantial liquidation of Citi鈥檚 Japan Consumer Finance business during the fourth quarter of 2018. See Note 1 to the Consolidated Financial Statements. Cash Flow Hedges Citigroup hedges the variability of forecasted cash flows associated with floating-rate assets/liabilities and other forecasted transactions. Variable cash flows from those liabilities are synthetically converted to fixed-rate cash flows by entering into receive-variable, pay-fixed interest rate swaps and receivevariable, pay-fixed forward-starting interest rate swaps. Variable cash flows associated with certain assets are synthetically converted to fixed-rate cash flows by entering into receive-fixed, pay-variable interest rate swaps. These cash flow hedging relationships use either regression analysis or dollar-offset ratio analysis to assess whether the hedging relationships are highly effective at inception and on an ongoing basis. Prior to the adoption of ASU 2017-12, Citigroup designated the risk being hedged as the risk of overall variability in the hedged cash flows for certain items. With the adoption of ASU 2017-12, Citigroup hedges the variability from changes in a contractually specified rate and recognizes the entire change in fair value of the cash flow hedging instruments in AOCI. Prior to the adoption of ASU 2017-12, to the extent that these derivatives were not fully effective, changes in their fair values in excess of changes in the value of the hedged transactions were immediately included in Other revenue. With the adoption of ASU 2017-12, such amounts are no longer required to be immediately recognized in income, but instead the full change in the value of the hedging instrument is required to be recognized in AOCI, and then recognized in earnings in the same period that the cash flows impact earnings. The pretax change in AOCI from cash flow hedges is presented below:
<table><tr><td></td><td colspan="4">Year ended December 31,</td></tr><tr><td>In millions of dollars</td><td colspan="2">2018</td><td>2017</td><td>2016</td></tr><tr><td>Amount of gain (loss) recognized in AOCI on derivative</td><td colspan="2"></td><td></td><td></td></tr><tr><td>Interest rate contracts<sup>-1</sup></td><td>$-361</td><td></td><td>$-165</td><td>$-219</td></tr><tr><td>Foreign exchange contracts</td><td colspan="2">5</td><td>-8</td><td>69</td></tr><tr><td>Total gain (loss) recognized in AOCI</td><td>$-356</td><td></td><td>$-173</td><td>$-150</td></tr><tr><td>Amount of gain (loss) reclassified from AOCI to earnings</td><td>Otherrevenue</td><td>Net interestrevenue</td><td>Otherrevenue</td><td>Otherrevenue</td></tr><tr><td>Interest rate contracts<sup>-1</sup></td><td>$—</td><td>$-301</td><td>$-126</td><td>$-140</td></tr><tr><td>Foreign exchange contracts</td><td>-17</td><td>—</td><td>-10</td><td>-93</td></tr><tr><td>Total gain (loss) reclassified from AOCI into earnings</td><td>$-17</td><td>$-301</td><td>$-136</td><td>$-233</td></tr></table>
(1) After January 1, 2018, all amounts reclassified into earnings for interest rate contracts are included in Interest income/Interest expense (Net interest revenue). For all other hedges, including interest rate hedges prior to January 1, 2018, the amounts reclassified to earnings are included primarily in Other revenue and Net interest revenue in the Consolidated Statement of Income. For cash flow hedges, the changes in the fair value of the hedging derivative remain in AOCI on the Consolidated Balance Sheet and will be included in the earnings of future periods to offset the variability of the hedged cash flows when such cash flows affect earnings. The net gain (loss) associated with cash flow hedges expected to be reclassified from AOCI within 12?months of December?31, 2018 is approximately $404 million. The maximum length of time over which forecasted cash flows are hedged is 10 years. The after-tax impact of cash flow hedges on AOCI is shown in Note?19 to the Consolidated Financial Statements. The following tables present information about Citi’s guarantees:
<table><tr><td></td><td colspan="3">Maximum potential amount of future payments</td><td></td></tr><tr><td>In billions of dollars at December 31, 2018, except carrying value in millions</td><td>Expire within1 year</td><td>Expire after1 year</td><td>Total amountoutstanding</td><td>Carrying value(in millions of dollars)</td></tr><tr><td>Financial standby letters of credit</td><td>$31.8</td><td>$65.3</td><td>$97.1</td><td>$131</td></tr><tr><td>Performance guarantees</td><td>7.7</td><td>4.2</td><td>11.9</td><td>29</td></tr><tr><td>Derivative instruments considered to be guarantees</td><td>23.5</td><td>87.4</td><td>110.9</td><td>567</td></tr><tr><td>Loans sold with recourse</td><td>—</td><td>1.2</td><td>1.2</td><td>9</td></tr><tr><td>Securities lending indemnifications<sup>-1</sup></td><td>98.3</td><td>—</td><td>98.3</td><td>—</td></tr><tr><td>Credit card merchant processing<sup>-1(2)</sup></td><td>95.0</td><td>—</td><td>95.0</td><td>—</td></tr><tr><td>Credit card arrangements with partners</td><td>0.3</td><td>0.8</td><td>1.1</td><td>162</td></tr><tr><td>Custody indemnifications and other</td><td>—</td><td>35.4</td><td>35.4</td><td>41</td></tr><tr><td>Total</td><td>$256.6</td><td>$194.3</td><td>$450.9</td><td>$939</td></tr></table>
Maximum potential amount of future payments |
-0.04817 | what was the decrease observed in the fair market value of plan assets of the benefit pension plans during 2014 and 2015? | Unconditional Purchase Obligations Approximately $390 of our long-term unconditional purchase obligations relate to feedstock supply for numerous HyCO (hydrogen, carbon monoxide, and syngas) facilities. The price of feedstock supply is principally related to the price of natural gas. However, long-term take-or-pay sales contracts to HyCO customers are generally matched to the term of the feedstock supply obligations and provide recovery of price increases in the feedstock supply. Due to the matching of most long-term feedstock supply obligations to customer sales contracts, we do not believe these purchase obligations would have a material effect on our financial condition or results of operations. Refer to Note 17, Commitments and Contingencies, to the consolidated financial statements for additional information on our unconditional purchase obligations. The unconditional purchase obligations also include other product supply and purchase commitments and electric power and natural gas supply purchase obligations, which are primarily pass-through contracts with our customers. In addition, purchase commitments to spend approximately $540 for additional plant and equipment are included in the unconditional purchase obligations in 2016. We also purchase materials, energy, capital equipment, supplies, and services as part of the ordinary course of business under arrangements that are not unconditional purchase obligations. The majority of such purchases are for raw materials and energy, which are obtained under requirements-type contracts at market prices. Obligation for Future Contribution to an Equity Affiliate On 19 April 2015, a joint venture between Air Products and ACWA Holding entered into a 20-year oxygen and nitrogen supply agreement to supply Saudi Aramco’s oil refinery and power plant being built in Jazan, Saudi Arabia. Air Products owns 25% of the joint venture and guarantees the repayment of its share of an equity bridge loan. In total, we expect to invest approximately $100 in this joint venture. As of 30 September 2015, we recorded a noncurrent liability of $67.5 for our obligation to make future equity contributions based on advances received by the joint venture under the loan. Income Tax Liabilities Noncurrent deferred income tax liabilities as of 30 September 2015 were $903.3. Tax liabilities related to unrecognized tax benefits as of 30 September 2015 were $97.5. These tax liabilities were excluded from the Contractual Obligations table, as it is impractical to determine a cash impact by year given that payments will vary according to changes in tax laws, tax rates, and our operating results. In addition, there are uncertainties in timing of the effective settlement of our uncertain tax positions with respective taxing authorities. Refer to Note 23, Income Taxes, to the consolidated financial statements for additional information. PENSION BENEFITS The Company sponsors defined benefit pension plans and defined contribution plans that cover a substantial portion of its worldwide employees. The principal defined benefit pension plans—the U. S. salaried pension plan and the U. K. pension plan—were closed to new participants in 2005 and were replaced with defined contribution plans. Over the long run, the shift to defined contribution plans is expected to reduce volatility of both plan expense and contributions. The fair market value of plan assets for our defined benefit pension plans as of the 30 September 2015 measurement date decreased to $3,916.4 from $4,114.6 at the end of fiscal year 2014. The projected benefit obligation for these plans was $4,787.8 and $4,738.6 at the end of the fiscal years 2015 and 2014, respectively. Refer to Note 16, Retirement Benefits, to the consolidated financial statements for comprehensive and detailed disclosures on our postretirement benefits. Pension Expense
<table><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Pension expense</td><td>$135.6</td><td>$135.9</td><td>$169.7</td></tr><tr><td>Special terminations, settlements, and curtailments (included above)</td><td>35.2</td><td>5.8</td><td>19.8</td></tr><tr><td>Weighted average discount rate</td><td>4.0%</td><td>4.6%</td><td>4.0%</td></tr><tr><td>Weighted average expected rate of return on plan assets</td><td>7.4%</td><td>7.7%</td><td>7.7%</td></tr><tr><td>Weighted average expected rate of compensation increase</td><td>3.5%</td><td>3.9%</td><td>3.8%</td></tr></table>
2010 Annual Report 83 During 2008, $254 million aggregate principal value of debt was repurchased and $241 million notional amount of interest rate swaps related to the debt repurchases was terminated. The following table summarizes the activity:
<table><tr><td> Dollars in Millions</td><td> Principal Value</td><td> Repurchase Price</td><td> Gain on Repurchase</td><td> Swap Termination Proceeds</td><td>Other, Including Basis Adjustment for Terminated Swaps</td><td> Gain/ (Loss)</td></tr><tr><td>5.875% Notes due 2036</td><td>$227</td><td>$201</td><td>$26</td><td>$32</td><td>$-3</td><td>$55</td></tr><tr><td>6.88% Debentures due 2097</td><td>13</td><td>13</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>7.15% Debentures due 2023</td><td>11</td><td>11</td><td>—</td><td>2</td><td>—</td><td>2</td></tr><tr><td>5.25% Notes due 2013</td><td>3</td><td>3</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total</td><td>$254</td><td>$228</td><td>$26</td><td>$34</td><td>$-3</td><td>$57</td></tr></table>
For further discussion of interest rate swaps see Note 24 “Financial Instruments. ” Interest payments, net of amounts related to interest rate swaps, were $178 million in 2010, $206 million in 2009 and $303 million in 2008. The principal value of long-term debt obligations was $4,749 million at December 31, 2010 of which $597 million is due in 2013, and the remaining $4,152 million is due later than 2013. The fair value of long-term debt was $5,861 million and $6,258 million at December 31, 2010 and 2009, respectively, and was estimated based upon the quoted market prices for the same or similar debt instruments. The fair value of short-term borrowings approximates the carrying value due to the short maturities of the debt instruments. A $2.0 billion five year revolving credit facility from a syndicate of lenders maturing in December 2011 is maintained. The facility is extendable with the consent of the lenders and contains customary terms and conditions, including a financial covenant whereby the ratio of consolidated net debt to consolidated capital cannot exceed 50% at the end of each quarter. The Company has been in compliance with this covenant since the inception of the facility. There were no borrowings outstanding under the facility at December 31, 2010 and 2009. At December 31, 2010, $178 million of financial guarantees were provided in the form of stand-by letters of credit and performance bonds. The stand-by letters of credit are with insurance companies in support of third-party liability programs. The performance bonds were issued to support a range of ongoing operating activities, including sale of products to hospitals and foreign ministries of health, bonds for customs, duties and value added tax and guarantees related to miscellaneous legal actions. A significant majority of the outstanding financial guarantees will expire within the year and are not expected to be funded. Note 24 FINANCIAL INSTRUMENTS Financial instruments include cash and cash equivalents, marketable securities, receivables, accounts payable, debt instruments and derivatives. Due to their short term maturity, the carrying amount of receivables and accounts payable approximate fair value. There is exposure to market risk due to changes in currency exchange rates and interest rates. As a result, certain derivative financial instruments are used when available on a cost-effective basis to hedge the underlying economic exposure. These instruments qualify as cash flow, net investment and fair value hedges upon meeting certain criteria, including effectiveness of offsetting hedged exposures. Changes in fair value of derivatives that do not qualify for hedge accounting are recognized in earnings as they occur. All financial instruments, including derivatives, are subject to counterparty credit risk which is considered as part of the overall fair value measurement. Derivative financial instruments are not used for trading purposes. Foreign currency forward contracts are used to manage cash flow exposures. The primary net foreign currency exposures hedged are the Euro, Japanese yen, Canadian dollar, British pound, Australian dollar and Mexican peso. Fixed-to-floating interest rate swaps are used as part of the interest rate risk management strategy. These swaps qualify for fair-value hedge accounting treatment. Certain net asset changes due to foreign exchange volatility are hedged through non-U. S. dollar borrowings which qualify as a net investment hedge. Derivative financial instruments present certain market and counterparty risks; however, concentration of counterparty risk is mitigated by limiting amounts with any individual counterparty and using banks worldwide with Standard & Poor's and Moody's long-term debt ratings of A or higher. In addition, only conventional derivative financial instruments are utilized. The consolidated financial statements would not be materially impacted if any counterparties failed to perform according to the terms of its agreement. Currently, collateral or any other form of securitization is not required to be furnished by the counterparties to derivative financial instruments. 2010 Annual Report 27 We continue to maximize our operating cash flows with our working capital initiatives designed to improve working capital items that are most directly affected by changes in sales volume, such as receivables, inventories and accounts payable. Those improvements are being driven by several actions including non-recourse factoring of non-US trade receivables, revised contractual payment terms with customers and vendors, enhanced collection processes and various supply chain initiatives designed to optimize inventory levels. Progress in this area is monitored each period and is a component of our annual incentive plan. The following summarizes certain working capital components expressed as a percentage of trailing twelve months’ net sales.
<table><tr><td> Dollars in Millions</td><td>December 31, 2010</td><td>% of Trailing Twelve Month Net Sales</td><td>December 31, 2009</td><td>% of Trailing Twelve Month Net Sales</td></tr><tr><td>Net trade receivables</td><td>$1,985</td><td>10.2%</td><td>$1,897</td><td>10.1%</td></tr><tr><td>Inventories</td><td>1,204</td><td>6.2%</td><td>1,413</td><td>7.5%</td></tr><tr><td>Accounts payable</td><td>-1,983</td><td>-10.2%</td><td>-1,711</td><td>-9.1%</td></tr><tr><td>Total</td><td>$1,206</td><td>6.2%</td><td>$1,599</td><td>8.5%</td></tr></table>
During 2010, changes in operating assets and liabilities aggregated to a net cash outflow of $166 million including: ? Cash outflows from receivables ($270 million) which are primarily attributed to increased sales; ? Cash outflows from other operating assets and liabilities ($248 million) primarily related to pension funding in excess of current year expense ($370 million), partially offset by increased rebate and sales returns ($238 million) primarily due to the increase in Medicaid rebates which was effective January 1, 2010 and agencies’ administrative delays in payments to managed care organizations; ? Cash inflows from accounts payables ($315 million) which are primarily attributed to the timing of vendor and alliance payments; and ? Cash inflows from inventories ($156 million) primarily related to the work down of inventory balances. In 2009, changes in operating assets and liabilities aggregated to a net cash inflow of $42 million including: ? Cash inflows from accounts payable ($472 million) primarily attributed to the timing of payments to vendors and alliances, as well as the impact of the working capital initiative discussed above; ? Cash inflows from receivables ($227 million) primarily attributed to additional factoring of non-U. S. trade receivables in Japan and Spain; ? Cash inflows from deferred income ($135 million) mainly due to the milestone payments received from Pfizer ($150 million) and AstraZeneca ($150 million), partially offset by amortization; and ? Cash outflows from other operating assets and liabilities ($932 million) primarily related to pension funding in excess of current year expense ($532 million), and a payment to Otsuka which is amortized as a reduction of net sales through the extension period ($400 million). In 2008, changes in operating assets aggregated to a net cash inflow of $117 million including: ? Cash inflows from income tax payable/receivable ($371 million) which includes the impact of the receipt of a $432 million tax refund, including interest, related to a prior year foreign tax credit carryback claim; ? Cash inflows from accounts payables ($253 million) which are primarily attributed to the timing of vendor and alliance payments; ? Cash inflows from inventory ($130 million) which is primarily attributed to the utilization of inventories which were built up in the prior year for new product launches and strategic builds for existing products launches including for new indications of Abilify; ? Cash inflows from deferred income ($61 million) which are primarily due to receipt of upfront licensing and milestone payments from alliance partners; ? Cash outflows from accounts receivables ($360 million) which are attributed to increased sales; and ? Cash outflows from other operating assets and liabilities ($338 million) which are primarily due to net litigation related payments ($190 million) attributed to the settlement of certain pricing and sales litigation accrued in prior periods; pension funding in excess of current year expense ($120 million); and increase in non-current inventory ($112 million). Investing Activities Net cash used in investing activities was $3.8 billion in 2010 including: ? Net purchases of marketable securities ($2.6 billion); ? Purchase of ZymoGenetics, Inc. ($829 million); and ? Capital expenditures ($424 million) Bristol-Myers Squibb 72 In May 2010, the Board of Directors authorized the repurchase of up to $3.0 billion of common stock. Repurchases may be made either in the open market or through private transactions, including under repurchase plans established in accordance with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The stock repurchase program does not have an expiration date but is expected to take place over the next few years. It may be suspended or discontinued at any time. During 2010, the Company repurchased 23 million shares at the average price of approximately $25.50 per share for an aggregate cost of $587 million which includes $1 million of transaction fees. Note 21 PENSION, POSTRETIREMENT AND POSTEMPLOYMENT LIABILITIES The Company and certain of its subsidiaries sponsor defined benefit pension plans, defined contribution plans and termination indemnity plans for regular full-time employees. The principal defined benefit pension plan is the Bristol-Myers Squibb Retirement Income Plan, which covers most U. S. employees and which represents approximately 70% of the consolidated pension plan assets and obligations. The funding policy is to contribute amounts to fund past service liability . Plan benefits are based primarily on the participant’s years of credited service and final average compensation. Plan assets consist principally of equity and fixed-income securities. Comprehensive medical and group life benefits are provided for substantially all U. S. retirees who elect to participate in comprehensive medical and group life plans. The medical plan is contributory. Contributions are adjusted periodically and vary by date of retirement. The life insurance plan is noncontributory. Plan assets consist principally of equity and fixed-income securities. Similar plans exist for employees in certain countries outside of the U. S. The net periodic benefit cost of defined benefit pension and postretirement benefit plans includes:
<table><tr><td></td><td colspan="3">Pension Benefits</td><td colspan="3">Other Benefits</td></tr><tr><td> Dollars in Millions</td><td>2010</td><td>2009</td><td>2008</td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Service cost — benefits earned during the year</td><td>$44</td><td>$178</td><td>$227</td><td>$6</td><td>$6</td><td>$7</td></tr><tr><td>Interest cost on projected benefit obligation</td><td>347</td><td>381</td><td>389</td><td>30</td><td>37</td><td>38</td></tr><tr><td>Expected return on plan assets</td><td>-453</td><td>-453</td><td>-469</td><td>-24</td><td>-19</td><td>-28</td></tr><tr><td>Amortization of prior service cost/(benefit)</td><td>—</td><td>4</td><td>10</td><td>-3</td><td>-3</td><td>-3</td></tr><tr><td>Amortization of net actuarial loss</td><td>95</td><td>94</td><td>98</td><td>10</td><td>10</td><td>5</td></tr><tr><td>Net periodic benefit cost</td><td>33</td><td>204</td><td>255</td><td>19</td><td>31</td><td>19</td></tr><tr><td>Curtailments</td><td>5</td><td>24</td><td>1</td><td>—</td><td>—</td><td>-2</td></tr><tr><td>Settlements</td><td>22</td><td>29</td><td>36</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Special termination benefits</td><td>1</td><td>—</td><td>14</td><td>—</td><td>—</td><td>2</td></tr><tr><td>Total net periodic benefit cost</td><td>$61</td><td>$257</td><td>$306</td><td>$19</td><td>$31</td><td>$19</td></tr><tr><td>Continuing operations</td><td>$61</td><td>$242</td><td>$256</td><td>$19</td><td>$28</td><td>$17</td></tr><tr><td>Discontinued operations</td><td>—</td><td>15</td><td>50</td><td>—</td><td>3</td><td>2</td></tr><tr><td>Total net periodic benefit cost</td><td>$61</td><td>$257</td><td>$306</td><td>$19</td><td>$31</td><td>$19</td></tr></table>
The U. S. Retirement Income Plan and several other plans were amended during June 2009. The amendments eliminate the crediting of future benefits relating to service effective December 31, 2009. Salary increases will continue to be considered for an additional five-year period in determining the benefit obligation related to prior service. The plan amendments were accounted for as a curtailment. As a result, the applicable plan assets and obligations were remeasured. The remeasurement resulted in a $455 million reduction to accumulated OCI ($295 million net of taxes) and a corresponding decrease to the unfunded status of the plan due to the curtailment, updated plan asset valuations and a change in the discount rate from 7.0% to 7.5%. A curtailment charge of $25 million was also recognized in other (income)/expense during the second quarter of 2009 for the remaining amount of unrecognized prior service cost. In addition, all participants were reclassified as inactive for benefit plan purposes and actuarial gains and losses will be amortized over the expected weighted-average remaining lives of plan participants (32 years). In connection with the plan amendment, contributions to principal defined contribution plans in the U. S. and Puerto Rico increased effective January 1, 2010. The net impact of the above actions is expected to reduce the future retiree benefit costs, although future costs will continue to be subject to market conditions and other factors including actual and expected plan asset performance, interest rate fluctuations and lump-sum benefit payments. In 2009, certain plan assets and related obligations were transferred from the U. S. Retirement Income Plan and several other plans to new plans sponsored by Mead Johnson for active Mead Johnson participants resulting in a $170 million reduction to accumulated OCI ($110 million net of taxes) in the first quarter of 2009 and a corresponding decrease to the unfunded status of the plan due to updated plan asset valuations and a change in the discount rate from 6.5% to 7.0%. |
12,923 | What is the total value of Operating revenues, Purchased power , Fuel and Other operations and maintenance for Electric ? (in million) | ABIOMED, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements—(Continued) Note 12. Stock Award Plans and Stock Based Compensation (Continued) Restricted Stock The following table summarizes restricted stock activity for the fiscal year ended March 31, 2009:
<table><tr><td></td><td colspan="2"> March 31, 2009</td></tr><tr><td></td><td>Number of Shares (in thousands)</td><td> Grant Date Fair Value</td></tr><tr><td>Restricted stock awards at March 31, 2008</td><td>54</td><td>$11.52</td></tr><tr><td>Granted</td><td>666</td><td>16.75</td></tr><tr><td>Vested</td><td>-167</td><td>14.65</td></tr><tr><td>Forfeited</td><td>-73</td><td>17.53</td></tr><tr><td>Restricted stock awards at March 31, 2009</td><td>480</td><td>$16.77</td></tr></table>
The remaining unrecognized compensation expense for restricted stock awards at March 31, 2009 was $4.6 million. The weighted average remaining contractual life for restricted stock awards at March 31, 2009 and 2008 was 1.8 and 2.4 years, respectively. In May 2008, 260,001 shares of restricted stock were issued to certain executive officers and certain members of senior management of the Company, of which 130,002 of these shares vest upon achievement of a prescribed performance milestone. In September 2008, the Company met the prescribed performance milestone, and all of these performance-based shares vested. In connection with the vesting of these shares, these employees paid withholding taxes due by returning 39,935 shares valued at $0.7 million. These shares have been recorded as treasury stock as of March 31, 2009. The remaining 129,999 of the restricted shares award vest ratably over four years from the grant date. The stock compensation expense for the restricted stock awards is recognized on a straight-line basis over the vesting period, based on the probability of achieving the performance milestones. In August 2008, 406,250 shares of restricted stock were issued to certain executive officers and certain members of senior management of the Company, all of which could vest upon achievement of certain prescribed performance milestones. In March 2009, the Company met a prescribed performance milestone, and a portion of these performance-based shares vested. The remaining stock compensation expense for the restricted stock awards is being recognized on a straight-line basis over the vesting period through March 31, 2011 based on the probability of achieving the performance milestones. The cumulative effects of changes in the probability of achieving the milestones will be recorded in the period in which the changes occur. During the year ended March 31, 2008, 60,000 shares of restricted stock were issued to certain executive officers of the Company that vest on the third anniversary of the date of grant. The stock compensation expense for the restricted stock awards is recognized on a straight-line basis over the vesting period. Employee Stock Purchase Plan In March 1988, the Company adopted the 1988 Employee Stock Purchase Plan (“the Purchase Plan” or “ESPP”), as amended. Under the Purchase Plan, eligible employees, including officers and directors, who have completed three months of employment with the Company or its subsidiaries who elect to participate in the Purchase plan instruct the Company to withhold a specified amount from each payroll period during a six-month payment period (the periods April 1—September 30 and October 1—March 31). On the last business day of each payment period, the amount withheld is used to purchase common stock at an exercise price equal to 85% of the lower of its market price on the first business day or the last business day of the payment period. Up to 500,000 shares of common stock may be issued under the Purchase Plan, of which 163,245 shares are available for future issuance as of March 31, 2009. During the years ended March 31, 2009, 2008 and 2007, 45,823, 23,930, and 27,095 shares of common stock, respectively, were sold pursuant to the Purchase Plan. PAR T I I Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information Our common stock is traded on the New York Stock Exchange under the ticker symbol BBY. The table below sets forth the high and low sales prices of our common stock as reported on the New York Stock Exchange — Composite Index during the periods indicated. The stock prices below have been revised to reflect a three-for-two stock split effected on August 3, 2005.
<table><tr><td> </td><td colspan="2"> Sales Price</td></tr><tr><td> </td><td> High</td><td> Low</td></tr><tr><td><i>Fiscal 2006</i></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$36.99</td><td>$31.93</td></tr><tr><td>Second Quarter</td><td>53.17</td><td>36.20</td></tr><tr><td>Third Quarter</td><td>50.88</td><td>40.40</td></tr><tr><td>Fourth Quarter</td><td>56.00</td><td>42.75</td></tr><tr><td><i>Fiscal 2005</i></td><td></td><td></td></tr><tr><td>First Quarter</td><td>$37.50</td><td>$30.10</td></tr><tr><td>Second Quarter</td><td>36.42</td><td>29.25</td></tr><tr><td>Third Quarter</td><td>41.47</td><td>30.57</td></tr><tr><td>Fourth Quarter</td><td>40.48</td><td>33.91</td></tr></table>
Holders As of April 24, 2006, there were 2,632 holders of record of Best Buy common stock. Dividends In fiscal 2004, our Board initiated the payment of a regular quarterly cash dividend, then $0.07 per common share per quarter. A quarterly cash dividend has been paid in each subsequent quarter. Effective with the quarterly cash dividend paid in the third quarter of fiscal 2005, we increased our quarterly cash dividend per common share by 10 percent. Effective with the quarterly cash dividend paid in the third quarter of fiscal 2006, we increased our quarterly cash dividend per common share by 9 percent to $0.08 per common share per quarter. The payment of cash dividends is subject to customary legal and contractual restrictions. Future dividend payments will depend on the Company’s earnings, capital requirements, financial condition and other factors considered relevant by our Board. Purchases of Equity Securities by the Issuer and Affiliated Purchasers In April 2005, our Board authorized a $1.5 billion share repurchase program. The program, which became effective on April 27, 2005, terminated and replaced a $500 million share repurchase program authorized by our Board in June 2004. Effective on June 24, 2004, our Board authorized the $500 million share repurchase program, which terminated and replaced a $400 million share repurchase program authorized by our Board in fiscal 2000. During the fourth quarter of fiscal 2006, we purchased and retired 7.1 million shares at a cost of $338 million. Since the inception of the $1.5 billion share repurchase program in fiscal 2006, we purchased and retired 16.5 million shares at a cost of $711 million. We consider several factors in determining when to make share repurchases including, among other things, our cash needs and the market price of the stock. At the end of fiscal 2006, $790 million of the $1.5 billion originally authorized by our Board was available for future share repurchases. Cash provided by future operating activities, available cash and cash equivalents, as well as short-term investments, are the expected sources of funding for the share repurchase program. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Continued Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. A discussion of the results of operations by principal business segment for the years ended December 31, 2014, 2013 and 2012 follows. For additional business segment financial information, see Note N to the financial statements in Item 8. Year Ended December 31, 2014 Compared with Year Ended December 31, 2013 The Companies’ results of operations in 2014 compared with 2013 were:
<table><tr><td></td><td colspan="2">CECONY</td><td colspan="2">O&R</td><td colspan="2">Competitive Energy Businesses</td><td colspan="2">Other(a)</td><td colspan="2">Con Edison(b)</td></tr><tr><td> (Millions of Dollars)</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td><td>Increases (Decreases) Amount</td><td>Increases (Decreases) Percent</td></tr><tr><td>Operating revenues</td><td>$356</td><td>3.4%</td><td>$59</td><td>7.1%</td><td>$148</td><td>13.5%</td><td>$2</td><td>40.0%</td><td>$565</td><td>4.6%</td></tr><tr><td>Purchased power</td><td>70</td><td>3.5</td><td>21</td><td>9.7</td><td>227</td><td>26.4</td><td>-</td><td>-</td><td>318</td><td>10.3</td></tr><tr><td>Fuel</td><td>-35</td><td>-10.9</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-35</td><td>-10.9</td></tr><tr><td>Gas purchased for resale</td><td>77</td><td>14.5</td><td>12</td><td>15.8</td><td>88</td><td>Large</td><td>-1</td><td>Large</td><td>176</td><td>27.7</td></tr><tr><td>Other operations and maintenance</td><td>138</td><td>5.0</td><td>16</td><td>5.3</td><td>3</td><td>2.9</td><td>-</td><td>-</td><td>157</td><td>5.0</td></tr><tr><td>Depreciation and amortization</td><td>45</td><td>4.8</td><td>5</td><td>8.9</td><td>-4</td><td>-17.4</td><td>1</td><td>Large</td><td>47</td><td>4.6</td></tr><tr><td>Taxes, other than income taxes</td><td>-18</td><td>-1.0</td><td>-2</td><td>-3.2</td><td>2</td><td>11.8</td><td>-</td><td>-</td><td>-18</td><td>-0.9</td></tr><tr><td>Gain on sale of solar electric production projects</td><td>-</td><td>-</td><td>-</td><td>-</td><td>45</td><td>-</td><td>-</td><td>-</td><td>45</td><td>-</td></tr><tr><td>Operating income (loss)</td><td>79</td><td>3.8</td><td>7</td><td>5.8</td><td>-123</td><td>Large</td><td>2</td><td>Large</td><td>-35</td><td>-1.6</td></tr><tr><td>Other income less deductions</td><td>10</td><td>Large</td><td>2</td><td>Large</td><td>20</td><td>Large</td><td>-3</td><td>Large</td><td>29</td><td>Large</td></tr><tr><td>Net interest expense</td><td>16</td><td>3.1</td><td>-2</td><td>-5.4</td><td>-143</td><td>Large</td><td>1</td><td>3.8</td><td>-128</td><td>-17.8</td></tr><tr><td>Income before income tax expense</td><td>73</td><td>4.7</td><td>11</td><td>13.1</td><td>40</td><td>62.5</td><td>-2</td><td>-9.1</td><td>122</td><td>7.9</td></tr><tr><td>Income tax expense</td><td>35</td><td>6.7</td><td>16</td><td>84.2</td><td>34</td><td>82.9</td><td>7</td><td>31.8</td><td>92</td><td>19.3</td></tr><tr><td>Net income for common stock</td><td>$38</td><td>3.7%</td><td>$-5</td><td>-7.7%</td><td>$6</td><td>26.1%</td><td>$-9</td><td>Large</td><td>$30</td><td>2.8%</td></tr></table>
(a) Includes parent company and consolidation adjustments. (b) Represents the consolidated financial results of Con Edison and its businesses.
<table><tr><td></td><td colspan="3"> Twelve Months Ended December 31, 2014</td><td></td><td colspan="3"> Twelve Months Ended December 31, 2013</td><td></td><td></td></tr><tr><td> (Millions of Dollars)</td><td> Electric</td><td> Gas</td><td> Steam</td><td> 2014 Total</td><td> Electric</td><td> Gas</td><td> Steam</td><td> 2013 Total</td><td>2014-2013 Variation</td></tr><tr><td>Operating revenues</td><td>$8,437</td><td>$1,721</td><td>$628</td><td>$10,786</td><td>$8,131</td><td>$1,616</td><td>$683</td><td>$10,430</td><td>$356</td></tr><tr><td>Purchased power</td><td>2,036</td><td>-</td><td>55</td><td>2,091</td><td>1,974</td><td>-</td><td>47</td><td>2,021</td><td>70</td></tr><tr><td>Fuel</td><td>180</td><td>-</td><td>105</td><td>285</td><td>174</td><td>-</td><td>146</td><td>320</td><td>-35</td></tr><tr><td>Gas purchased for resale</td><td>-</td><td>609</td><td>-</td><td>609</td><td>-</td><td>532</td><td>-</td><td>532</td><td>77</td></tr><tr><td>Other operations and maintenance</td><td>2,270</td><td>418</td><td>185</td><td>2,873</td><td>2,180</td><td>351</td><td>204</td><td>2,735</td><td>138</td></tr><tr><td>Depreciation and amortization</td><td>781</td><td>132</td><td>78</td><td>991</td><td>749</td><td>130</td><td>67</td><td>946</td><td>45</td></tr><tr><td>Taxes, other than income taxes</td><td>1,458</td><td>248</td><td>92</td><td>1,798</td><td>1,459</td><td>241</td><td>116</td><td>1,816</td><td>-18</td></tr><tr><td> Operating income</td><td>$1,712</td><td>$314</td><td>$113</td><td>$2,139</td><td>$1,595</td><td>$362</td><td>$103</td><td>$2,060</td><td>$79</td></tr></table>
reasonably possible that such matters will be resolved in the next twelve months, but we do not anticipate that the resolution of these matters would result in any material impact on our results of operations or financial position. Foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years. Years still open to examination by foreign tax authorities in major jurisdictions include Australia (2003 onward), Canada (2002 onward), France (2006 onward), Germany (2005 onward), Italy (2005 onward), Japan (2002 onward), Puerto Rico (2005 onward), Singapore (2003 onward), Switzerland (2006 onward) and the United Kingdom (2006 onward). Our tax returns are currently under examination in various foreign jurisdictions. The most significant foreign tax jurisdiction under examination is the United Kingdom. It is reasonably possible that such audits will be resolved in the next twelve months, but we do not anticipate that the resolution of these audits would result in any material impact on our results of operations or financial position.13. CAPITAL STOCK AND EARNINGS PER SHARE We are authorized to issue 250 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2008. The numerator for both basic and diluted earnings per share is net earnings available to common stockholders. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards. The following is a reconciliation of weighted average shares for the basic and diluted share computations for the years ending December 31 (in millions):
<table><tr><td></td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td>Weighted average shares outstanding for basic net earnings per share</td><td>227.3</td><td>235.5</td><td>243.0</td></tr><tr><td>Effect of dilutive stock options and other equity awards</td><td>1.0</td><td>2.0</td><td>2.4</td></tr><tr><td>Weighted average shares outstanding for diluted net earnings per share</td><td>228.3</td><td>237.5</td><td>245.4</td></tr></table>
For the year ended December 31, 2008, an average of 11.2 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock. For the years ended December 31, 2007 and 2006, an average of 3.1 million and 7.6 million options, respectively, were not included. During 2008, we repurchased approximately 10.8 million shares of our common stock at an average price of $68.72 per share for a total cash outlay of $737.0 million, including commissions. In April 2008, we announced that our Board of Directors authorized a $1.25 billion share repurchase program which expires December 31, 2009. Approximately $1.13 billion remains authorized under this plan.14. SEGMENT DATA We design, develop, manufacture and market orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products which include surgical supplies and instruments designed to aid in orthopaedic surgical procedures and post-operation rehabilitation. We also provide other healthcare-related services. Revenue related to these services currently represents less than 1 percent of our total net sales. We manage operations through three major geographic segments – the Americas, which is comprised principally of the United States and includes other North, Central and South American markets; Europe, which is comprised principally of Europe and includes the Middle East and Africa; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets. This structure is the basis for our reportable segment information discussed below. Management evaluates operating segment performance based upon segment operating profit exclusive of operating expenses pertaining to global operations and corporate expenses, share-based compensation expense, settlement, certain claims, acquisition, integration and other expenses, inventory step-up, in-process research and development write-offs and intangible asset amortization expense. Global operations include research, development engineering, medical education, brand management, corporate legal, finance, and human resource functions, and U. S. and Puerto Rico-based manufacturing operations and logistics. Intercompany transactions have been eliminated from segment operating profit. Management reviews accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets by reportable segment exclusive of U. S and Puerto Rico-based manufacturing operations and logistics and corporate assets. |
-0.25 | In the year with largest amount of General and administrative expense, what's the increasing rate of Total revenues? | Table of Contents ADOBE SYSTEMS INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table sets forth the components of foreign currency translation adjustments for fiscal 2012, 2011 and 2010 (in thousands):
<table><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Beginning balance</td><td>$10,580</td><td>$7,632</td><td>$10,640</td></tr><tr><td>Foreign currency translation adjustments</td><td>-2,225</td><td>5,156</td><td>-4,144</td></tr><tr><td>Income tax effect relating to translation adjustments forundistributed foreign earnings</td><td>1,314</td><td>-2,208</td><td>1,136</td></tr><tr><td>Ending balance</td><td>$9,669</td><td>$10,580</td><td>$7,632</td></tr></table>
Stock Repurchase Program To facilitate our stock repurchase program, designed to return value to our stockholders and minimize dilution from stock issuances, we repurchase shares in the open market and also enter into structured repurchase agreements with third-parties. Authorization to repurchase shares to cover on-going dilution was not subject to expiration. However, this repurchase program was limited to covering net dilution from stock issuances and was subject to business conditions and cash flow requirements as determined by our Board of Directors from time to time. During the third quarter of fiscal 2010, our Board of Directors approved an amendment to our stock repurchase program authorized in April 2007 from a non-expiring share-based authority to a time-constrained dollar-based authority. As part of this amendment, the Board of Directors granted authority to repurchase up to $1.6 billion in common stock through the end of fiscal 2012. During the second quarter of fiscal 2012, we exhausted our $1.6 billion authority granted by our Board of Directors in fiscal 2010. In April 2012, the Board of Directors approved a new stock repurchase program granting authority to repurchase up to $2.0 billion in common stock through the end of fiscal 2015. The new stock repurchase program approved by our Board of Directors is similar to our previous $1.6 billion stock repurchase program. During fiscal 2012, 2011 and 2010, we entered into several structured repurchase agreements with large financial institutions, whereupon we provided the financial institutions with prepayments totaling $405.0 million, $695.0 million and $850 million, respectively. Of the $405.0 million of prepayments during fiscal 2012, $100.0 million was under the new $2.0 billion stock repurchase program and the remaining $305.0 million was under our previous $1.6 billion authority. Of the $850.0 million of prepayments during fiscal 2010, $250.0 million was under the stock repurchase program prior to the program amendment in the third quarter of fiscal 2010 and the remaining $600.0 million was under the amended $1.6 billion time-constrained dollar-based authority. We enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the Volume Weighted Average Price (“VWAP”) of our common stock over a specified period of time. We only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions. There were no explicit commissions or fees on these structured repurchases. Under the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to us. The financial institutions agree to deliver shares to us at monthly intervals during the contract term. The parameters used to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed upon discount. During fiscal 2012, we repurchased approximately 11.5 million shares at an average price of $32.29 through structured repurchase agreements entered into during fiscal 2012. During fiscal 2011, we repurchased approximately 21.8 million shares at an average price of $31.81 through structured repurchase agreements entered into during fiscal 2011. During fiscal 2010, we repurchased approximately 31.2 million shares at an average price per share of $29.19 through structured repurchase agreements entered into during fiscal 2009 and fiscal 2010. For fiscal 2012, 2011 and 2010, the prepayments were classified as treasury stock on our Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by November 30, 2012, December 2, 2011 and December 3, 2010 were excluded from the computation of earnings per share. As of November 30, 2012, $33.0 million of prepayments remained under these agreements. As of December 2, 2011 and December 3, 2010, no prepayments remained under these agreements. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows:
<table><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Balance at January 1</td><td>$242</td><td>$209</td><td>$116</td></tr><tr><td>Additions based on tax positions related to the current year</td><td>18</td><td>17</td><td>22</td></tr><tr><td>Additions for tax positions of prior years</td><td>48</td><td>35</td><td>74</td></tr><tr><td>Reductions for tax positions of prior years</td><td>-147</td><td>-19</td><td>-3</td></tr><tr><td>Balance at December 31</td><td>$161</td><td>$242</td><td>$209</td></tr></table>
If recognized, approximately $57 million, $57 million and $62 million, net of federal tax benefits, of unrecognized tax benefits as of December 31, 2015, 2014, and 2013, respectively, would affect the effective tax rate. It is reasonably possible that the total amounts of unrecognized tax benefits will change in the next 12 months. The Company estimates that the total amount of gross unrecognized tax benefits may decrease by $90 million to $100 million in the next 12 months primarily due to resolution of IRS examinations. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the income tax provision. The Company recognized a net increase of $3 million, $6 million, and $6 million in interest and penalties for the years ended December 31, 2015, 2014, and 2013, respectively. At December 31, 2015 and 2014, the Company had a payable of $51 million and $48 million, respectively, related to accrued interest and penalties. The Company or one or more of its subsidiaries files income tax returns in the U. S. federal jurisdiction, and various state and foreign jurisdictions. The IRS has completed its field examination of the 1997 through 2011 tax returns. However, for federal income tax purposes, tax years 1997 through 2006, 2008, and 2009 remain open for certain unagreed-upon issues. The IRS is currently auditing the Company’s U. S. Income Tax Returns for 2012 and 2013. The Company’s or certain of its subsidiaries’ state income tax returns are currently under examination by various jurisdictions for years ranging from 1997 through 2012 and remain open for all years after 2012.22. Retirement Plans and Profit Sharing Arrangements Defined Benefit Plans Pension Plans and Other Postretirement Benefits The Company’s U. S. non-advisor employees are generally eligible for the Ameriprise Financial Retirement Plan (the ‘‘Retirement Plan’’), a noncontributory defined benefit plan which is a qualified plan under the Employee Retirement Income Security Act of 1974, as amended (‘‘ERISA’’). Funding of costs for the Retirement Plan complies with the applicable minimum funding requirements specified by ERISA and is held in a trust. The Retirement Plan is a cash balance plan by which the employees’ accrued benefits are based on notional account balances, which are maintained for each individual. Each pay period these balances are credited with an amount equal to a percentage of eligible compensation as defined by the Retirement Plan (which includes, but is not limited to, base pay, performance based incentive pay, commissions, shift differential and overtime). Prior to March 1, 2010, the percentage ranged from 2.5% to 10% based on employees’ age plus years of service. Effective March 1, 2010, the percentage ranges from 2.5% to 5% based on employees’ years of service. Employees eligible for the plan at the time of the change will continue to receive the same percentage they were receiving until the new schedule becomes more favorable. Employees’ balances are also credited with a fixed rate of interest that is updated each January 1 and is based on the average of the daily five-year U. S. Treasury Note yields for the previous October 1 through November 30, with a minimum crediting rate of 5%. Employees are fully vested after three years of service or upon retirement at or after age 65, disability or death while employed. Employees have the option to receive annuity payments or a lump sum payout of vested balance at termination or retirement. The Retirement Plan’s year-end is September 30. In addition, the Company sponsors the Ameriprise Financial Supplemental Retirement Plan (the ‘‘SRP’’), an unfunded non-qualified deferred compensation plan subject to Section 409A of the Internal Revenue Code. This plan is for certain highly compensated employees to replace the benefit that cannot be provided by the Retirement Plan due to IRS limits. The SRP generally parallels the Retirement Plan but offers different payment options. The Company also sponsors unfunded defined benefit postretirement plans that provide health care and life insurance to retired U. S. employees. Net periodic postretirement benefit costs were nil for the years ended December 31, 2015, 2014 and 2013. Most employees outside the U. S. are covered by local retirement plans, some of which are funded, while other employees receive payments at the time of retirement or termination under applicable labor laws or agreements. ÿþo f t h e u n l o c k i n g i m p a c t t o o t h e r r e v e n u e s i n b o t h p e r i o d s w a s l o w e r p r o j e c t e d g a i n s o n r e i n s u r a n c e c o n t r a c t s r e s u l t i n g f r o m f a v o r a b l e m o r t a l i t y e x p e r i e n c e . E x p e n s e s T o t a l e x p e n s e s , w h i c h e x c l u d e t h e m a r k e t i m p a c t o n i n d e x e d u n i v e r s a l l i f e b e n e f i t s ( n e t o f h e d g e s a n d t h e r e l a t e d D A C a m o r t i z a t i o n ) a n d t h e D A C o f f s e t t o n e t r e a l i z e d i n v e s t m e n t g a i n s o r l o s s e s , i n c r e a s e d $ 1 6 0 m i l l i o n , o r 8 % , t o $ 2 . 2 b i l l i o n f o r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 1 5 c o m p a r e d t o $ 2 . 0 b i l l i o n f o r t h e p r i o r y e a r p r i m a r i l y d u e t o i n c r e a s e s i n b e n e f i t s , c l a i m s , l o s s e s a n d s e t t l e m e n t e x p e n s e s a n d a m o r t i z a t i o n o f D A C . B e n e f i t s , c l a i m s , l o s s e s a n d s e t t l e m e n t e x p e n s e s i n c r e a s e d $ 1 2 2 m i l l i o n , o r 9 % , t o $ 1 . 5 b i l l i o n f o r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 1 5 c o m p a r e d t o $ 1 . 4 b i l l i o n f o r t h e p r i o r y e a r p r i m a r i l y r e f l e c t i n g t h e f o l l o w i n g i t e m s : " A $ 1 0 6 m i l l i o n i n c r e a s e r e l a t e d t o o u r a u t o a n d h o m e b u s i n e s s d u e t o a n i n c r e a s e i n t h e p r o v i s i o n f o r e s t i m a t e d l o s s e s r e f l e c t i n g t h e i m p a c t o f g r o w t h i n e x p o s u r e s d u e t o a 3 % i n c r e a s e i n p o l i c i e s i n f o r c e , h i g h e r 2 0 1 5 a c c i d e n t y e a r l o s s r a t i o a s s u m p t i o n s a n d p r i o r y e a r d e v e l o p m e n t . I n 2 0 1 5 , w e i n c r e a s e d o u r c l a i m s r e s e r v e s $ 5 7 m i l l i o n p r i m a r i l y r e l a t e d t o t h e 2 0 1 4 a n d p r i o r a c c i d e n t y e a r s a u t o l i a b i l i t y c o v e r a g e s . T h i s i n c r e a s e w a s d r i v e n b y e l e v a t e d f r e q u e n c y a n d s e v e r i t y e x p e r i e n c e f o r a u t o i n j u r y c l a i m s , a s w e l l a s a l o w e r t h a n e x p e c t e d l e v e l o f i m p a c t i n i m p r o v i n g t h e o u t c o m e o f 2 0 1 4 a n d p r i o r a c c i d e n t y e a r e x i s t i n g c l a i m s . A u t o a n d h o m e l o s s e s f o r t h e p r i o r y e a r i n c l u d e d a $ 3 0 m i l l i o n i n c r e a s e t o p r i o r a c c i d e n t y e a r l o s s r e s e r v e s r e s u l t i n g f r o m a d v e r s e d e v e l o p m e n t i n t h e 2 0 1 3 a n d p r i o r a c c i d e n t y e a r s a u t o l i a b i l i t y c o v e r a g e a n d a $ 6 0 m i l l i o n i n c r e a s e t o l o s s r e s e r v e s f o r e s t i m a t e d l o s s e s i n c l u d i n g I B N R c l a i m s r e s u l t i n g f r o m f u r t h e r a d v e r s e l o s s d e v e l o p m e n t o b s e r v e d p r i m a r i l y i n t h e 2 0 1 4 a u t o b o o k o f b u s i n e s s . C a t a s t r o p h e l o s s e s w e r e $ 7 2 m i l l i o n f o r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 1 5 c o m p a r e d t o $ 6 6 m i l l i o n f o r t h e p r i o r y e a r . " A $ 2 0 m i l l i o n i n c r e a s e i n l i f e i n s u r a n c e c l a i m s c o m p a r e d t o t h e p r i o r y e a r p r i m a r i l y d u e t o l a r g e r c l a i m s . " A $ 1 9 m i l l i o n i n c r e a s e i n L T C c l a i m s c o m p a r e d t o t h e p r i o r y e a r p r i m a r i l y d u e t o a n i n c r e a s e i n t h e n u m b e r o f o p e n c l a i m s a n d a n u p d a t e i n c l a i m r e s e r v e a s s u m p t i o n s p a r t i a l l y o f f s e t b y a h i g h e r i n t e r e s t r a t e u s e d f o r L T C c l a i m s a n d t h e r e l e a s e o f a d d i t i o n a l L T C r e s e r v e s . A m o r t i z a t i o n o f D A C , w h i c h e x c l u d e s t h e D A C o f f s e t t o t h e m a r k e t i m p a c t o n i n d e x e d u n i v e r s a l l i f e b e n e f i t s a n d t h e D A C o f f s e t t o n e t r e a l i z e d i n v e s t m e n t g a i n s o r l o s s e s , i n c r e a s e d $ 2 0 m i l l i o n , o r 1 5 % , t o $ 1 5 5 m i l l i o n f o r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 1 5 c o m p a r e d t o $ 1 3 5 m i l l i o n f o r t h e p r i o r y e a r p r i m a r i l y d u e t o t h e i m p a c t o f u n l o c k i n g . A m o r t i z a t i o n o f D A C f o r t h e y e a r e n d e d D e c e m b e r 3 1 , 2 0 1 5 i n c l u d e d a $ 1 0 m i l l i o n e x p e n s e f r o m u n l o c k i n g p r i m a r i l y d r i v e n b y t h e d i f f e r e n c e b e t w e e n o u r p r e v i o u s l y a s s u m e d i n t e r e s t r a t e s v e r s u s t h e c o n t i n u e d l o w i n t e r e s t r a t e e n v i r o n m e n t . A m o r t i z a t i o n o f D A C f o r t h e p r i o r y e a r i n c l u d e d a $ 9 m i l l i o n b e n e f i t f r o m u n l o c k i n g . C o r p o r a t e & O t h e r T h e f o l l o w i n g t a b l e p r e s e n t s t h e r e s u l t s o f o p e r a t i o n s o f o u r C o r p o r a t e & O t h e r s e g m e n t o n a n o p e r a t i n g b a s i s : @ T @ O u r C o r p o r a t e & O t h e r s e g m e n t p r e t a x o p e r a t i n g l o s s e x c l u d e s n e t r e a l i z e d i n v e s t m e n t g a i n s o r l o s s e s , t h e m a r k e t i m p a c t o f h e d g e s t o o f f s e t i n t e r e s t r a t e c h a n g e s o n u n r e a l i z e d g a i n s o r l o s s e s f o r c e r t a i n i n v e s t m e n t s , i n t e g r a t i o n a n d r e s t r u c t u r i n g c h a r g e s , a n d t h e i m p a c t o f c o n s o l i d a t i n g C I E s . O u r C o r p o r a t e & O t h e r s e g m e n t p r e t a x o p e r a t i n g l o s s d e c r e a s e d
<table><tr><td></td><td colspan="2">Years Ended December 31,</td><td></td><td></td></tr><tr><td></td><td>2015</td><td>2014</td><td colspan="2">Change</td></tr><tr><td></td><td colspan="3">(in millions)</td><td></td></tr><tr><td>Revenues</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution fees</td><td>$—</td><td>$1</td><td>$-1</td><td>NM</td></tr><tr><td>Net investment loss</td><td>-10</td><td>-6</td><td>-4</td><td>-67%</td></tr><tr><td>Other revenues</td><td>13</td><td>9</td><td>4</td><td>44</td></tr><tr><td>Total revenues</td><td>3</td><td>4</td><td>-1</td><td>-25</td></tr><tr><td>Banking and deposit interest expense</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Total net revenues</td><td>3</td><td>4</td><td>-1</td><td>-25</td></tr><tr><td>Expenses</td><td></td><td></td><td></td><td></td></tr><tr><td>Distribution expenses</td><td>—</td><td>1</td><td>-1</td><td>NM</td></tr><tr><td>Interest and debt expense</td><td>22</td><td>21</td><td>1</td><td>5</td></tr><tr><td>General and administrative expense</td><td>180</td><td>212</td><td>-32</td><td>-15</td></tr><tr><td>Total expenses</td><td>202</td><td>234</td><td>-32</td><td>-14</td></tr><tr><td>Operating loss</td><td>$-199</td><td>$-230</td><td>$31</td><td>13%</td></tr></table> |
27,712 | What is the sum of Purchase obligations of December 31, 2009 Due after 5 Years, Commercial real estate of December 31 2009 Amount, and Small business commercial – domestic of December 31 2009 Amount ? | GWIM provides a wide offering of customized banking, investment and brokerage services tailored to meet the changing wealth management needs of our individual and institutional customer base. Our clients have access to a range of services offered through three primary businesses: MLGWM; U. S. Trust, Bank of America Private Wealth Management (U. S. Trust); and Columbia. The results of the Retirement & Philanthropic Services business, the Corporation’s approximate 34 percent economic ownership interest in BlackRock and other miscellaneous items are included in Other within GWIM. As part of the Merrill Lynch acquisition, we added its financial advisors and an economic ownership interest of approximately 50 percent in BlackRock, a publicly traded investment management company. During 2009, BlackRock completed its purchase of Barclays Global Investors, an asset management business, from Barclays PLC which had the effect of diluting our ownership interest in BlackRock and, for accounting purposes, was treated as a sale of a portion of our ownership interest. As a result, upon the closing of this transaction, the Corporation’s economic ownership interest in BlackRock was reduced to approximately 34 percent and we recorded a pre-tax gain of $1.1 billion. Net income increased $1.1 billion, or 78 percent, to $2.5 billion as higher total revenue was partially offset by increases in noninterest expense and provision for credit losses. Net interest income increased $767 million, or 16 percent, to $5.6 billion primarily due to the acquisition of Merrill Lynch partially offset by a lower net interest income allocation from ALM activities and the impact of the migration of client balances during 2009 to Deposits and Home Loans & Insurance. GWIM’s average loan and deposit growth benefited from the acquisition of Merrill Lynch and the shift of client assets from off-balance sheet (e. g. , money market funds) to on-balance sheet products (e. g. , deposits) partially offset by the net migration of customer relationships. A more detailed discussion regarding migrated customer relationships and related balances is provided in the following MLGWM discussion. Noninterest income increased $9.5 billion to $12.6 billion primarily due to higher investment and brokerage services income driven by the Merrill Lynch acquisition, the $1.1 billion gain on our investment in BlackRock and the lower level of support provided to certain cash funds partially offset by the impact of lower average equity market levels and net outflows primarily in the cash complex. Provision for credit losses increased $397 million, or 60 percent, to $1.1 billion, reflecting the weak economy during 2009 which drove higher net charge-offs in the consumer real estate and commercial portfolios including a single large commercial charge-off. Noninterest expense increased $8.2 billion to $13.1 billion driven by the addition of Merrill Lynch and higher FDIC insurance and special assessment costs partially offset by lower revenue-related expenses. Client Assets The following table presents client assets which consist of AUM, client brokerage assets, assets in custody and client deposits.
<table><tr><td></td><td colspan="2">December 31</td></tr><tr><td>(Dollars in millions)</td><td>2009</td><td>2008</td></tr><tr><td>Assets under management</td><td>$749,852</td><td>$523,159</td></tr><tr><td>Client brokerage assets<sup>-1</sup></td><td>1,270,461</td><td>172,106</td></tr><tr><td>Assets in custody</td><td>274,472</td><td>133,726</td></tr><tr><td>Client deposits</td><td>224,840</td><td>176,186</td></tr><tr><td>Less: Client brokerage assets and assets incustody included in assets under management</td><td>-346,682</td><td>-87,519</td></tr><tr><td> Total net client assets</td><td>$2,172,943</td><td>$917,658</td></tr></table>
(1) Client brokerage assets include non-discretionary brokerage and fee-based assets. The increase in net client assets was driven by the acquisition of Merrill Lynch and higher equity market values at December 31, 2009 compared to 2008 partially offset by outflows that primarily occurred in cash and money market assets due to increasing interest rate pressure. Merrill Lynch Global Wealth Management Effective January 1, 2009, as a result of the Merrill Lynch acquisition, we combined the Merrill Lynch wealth management business and our former Premier Banking & Investments business to form MLGWM. MLGWM provides a high-touch client experience through a network of approximately 15,000 client-facing financial advisors to our affluent customers with a personal wealth profile of at least $250,000 of investable assets. The addition of Merrill Lynch created one of the largest financial advisor networks in the world. Merrill Lynch added $10.3 billion in revenue and $1.6 billion in net income during 2009. Total client balances in MLGWM, which include deposits, AUM, client brokerage assets and other assets in custody, were $1.4 trillion at December 31, 2009. MLGWM includes the impact of migrating customers and their related deposit and loan balances to or from Deposits and Home Loans & Insurance. As of the date of migration, the associated net interest income, noninterest income and noninterest expense are recorded in the segment to which the customers migrated. During 2009, total deposits of $43.4 billion were migrated to Deposits from MLGWM. Conversely, during 2008, total deposits of $20.5 billion were migrated from Deposits to MLGWM. During 2009 and 2008, total loans of $16.6 billion and $1.7 billion were migrated from MLGWM, of which $11.5 billion and $1.6 billion were migrated to Home Loans & Insurance. These changes in 2009 were mainly due to client segmentation threshold changes resulting from the Merrill Lynch acquisition. Table 9 presents total long-term debt and other obligations at December 31, 2009.
<table><tr><td></td><td colspan="5"> December 31, 2009</td></tr><tr><td>(Dollars in millions)</td><td> Due in 1 Year or Less</td><td> Due after 1 Year through 3 Years</td><td> Due after 3 Years through 5 Years</td><td> Due after 5 Years</td><td> Total</td></tr><tr><td>Long-term debt and capital leases</td><td>$99,144</td><td>$124,054</td><td>$72,103</td><td>$143,220</td><td>$438,521</td></tr><tr><td>Operating lease obligations</td><td>3,143</td><td>5,072</td><td>3,355</td><td>8,143</td><td>19,713</td></tr><tr><td>Purchase obligations</td><td>11,957</td><td>3,667</td><td>1,627</td><td>2,119</td><td>19,370</td></tr><tr><td>Other long-term liabilities</td><td>610</td><td>1,097</td><td>848</td><td>1,464</td><td>4,019</td></tr><tr><td> Total long-term debt and other obligations</td><td>$114,854</td><td>$133,890</td><td>$77,933</td><td>$154,946</td><td>$481,623</td></tr></table>
Debt, lease, equity and other obligations are more fully discussed in Note 13 – Long-term Debt and Note 14 – Commitments and Contingencies to the Consolidated Financial Statements. The Plans are more fully discussed in Note 17 – Employee Benefit Plans to the Consolidated Financial Statements. We enter into commitments to extend credit such as loan commitments, standby letters of credit (SBLCs) and commercial letters of credit to meet the financing needs of our customers. For a summary of the total unfunded, or off-balance sheet, credit extension commitment amounts by expiration date, see the table in Note 14 – Commitments and Contingencies to the Consolidated Financial Statements. Regulatory Initiatives On November 12, 2009, the Federal Reserve issued the final rule related to changes to Regulation E and on May 22, 2009, the CARD Act was signed into law. For more information on the impact of these new regulations, see Regulatory Overview on page 29. In December 2009, the Basel Committee on Banking Supervision released consultative documents on both capital and liquidity. In addition, we will begin Basel II parallel implementation during the second quarter of 2010. For more information, see Basel Regulatory Capital Requirements on page 64. On January 21, 2010, the Federal Reserve, Office of the Comptroller of the Currency, FDIC and Office of Thrift Supervision (collectively, joint agencies) issued a final rule regarding risk-based capital and the impact of adoption of new consolidation rules issued by the FASB. The final rule eliminates the exclusion of certain asset-backed commercial paper (ABCP) program assets from risk-weighted assets and provides a reservation of authority to permit the joint agencies to require banks to treat structures that are not consolidated under the accounting standards as if they were consolidated for risk-based capital purposes commensurate with the risk relationship of the bank to the structure. In addition, the final rule allows for an optional delay and phase-in for a maximum of one year for the effect on risk-weighted assets and the regulatory limit on the inclusion of the allowance for loan and lease losses in Tier 2 capital related to the assets that must be consolidated as a result of the accounting change. The transitional relief does not apply to the leverage ratio or to assets in VIEs to which a bank provides implicit support. We have elected to forgo the phase-in period, and accordingly, we consolidated the amounts for regulatory capital purposes as of January 1, 2010. For more information on the impact of this guidance, see Impact of Adopting New Accounting Guidance on Consolidation on page 64. On December 14, 2009, we announced our intention to increase lending to small- and medium-sized businesses to approximately $21 billion in 2010 compared to approximately $16 billion in 2009. This announcement is consistent with the U. S. Treasury’s initiative, announced as part of the Financial Stability Plan on February 2, 2009, to help increase small business owners’ access to credit. As part of the initiative, the U. S. Treasury began making direct purchases of up to $15 billion of certain securities backed by Small Business Administration (SBA) loans to improve liquidity in the credit markets and purchasing new securities to ensure that financial institutions feel confident in extending new loans to small businesses. The program also temporarily raises guarantees to up to 90 percent in the SBA’s loan program and temporarily eliminates certain SBA loan fees. We continue to lend to creditworthy small business customers through small business credit cards, loans and lines of credit products. In response to the economic downturn, the FDIC implemented the Temporary Liquidity Guarantee Program (TLGP) to strengthen confidence and encourage liquidity in the banking system by allowing the FDIC to guarantee senior unsecured debt (e. g. , promissory notes, unsubordinated unsecured notes and commercial paper) up to prescribed limits, issued by participating entities beginning on October 14, 2008, and continuing through October 31, 2009. We participated in this program; however, as announced in September 2009, due to improved market liquidity and our ability to issue debt without the FDIC guarantee, we, with the FDIC’s agreement, exited the program and have stopped issuing FDICguaranteed debt. At December 31, 2009, we still had FDIC-guaranteed debt outstanding issued under the TLGP of $44.3 billion. The TLGP also offered the Transaction Account Guarantee Program (TAGP) that guaranteed noninterest-bearing deposit accounts held at participating FDICinsured institutions on balances in excess of $250,000. We elected to opt out of the six-month extension of the TAGP which extends the program to June 30, 2010. We exited the TAGP effective December 31, 2009. On September 21, 2009, the Corporation reached an agreement to terminate its term sheet with the U. S. government under which the U. S. government agreed in principle to provide protection against the possibility of unusually large losses on a pool of the Corporation’s financial instruments that were acquired from Merrill Lynch. In connection with the termination of the term sheet, the Corporation paid a total of $425 million to the U. S. government to be allocated among the U. S. Treasury, the Federal Reserve and the FDIC. In addition to exiting the TARP as discussed on page 30, terminating the U. S. Government’s asset guarantee term sheet and exiting the TLGP, including the TAGP, we have exited or ceased participation in market disruption liquidity programs created by the U. S. government in response to the economic downturn of 2008. We have exited or repaid borrowings under the Term Auction Facility, U. S. Treasury Temporary Liquidity Guarantee Program for Money Market Funds, ABCP Money Market Fund Liquidity Facility, Commercial Paper Federal Funding Facility, Money Market Investor Funding Facility, Term Securities Lending Facility and Primary Dealer Credit Facility. On November 17, 2009, the FDIC issued a final rule that required insured institutions to prepay on December 30, 2009 their estimated Table 29 presents commercial credit exposure by type for utilized, unfunded and total binding committed credit exposure. Commercial utilized credit exposure includes funded loans, standby letters of credit, financial guarantees, bankers’ acceptances and commercial letters of credit for which the bank is legally bound to advance funds under prescribed conditions, during a specified period. Although funds have not been advanced, these exposure types are considered utilized for credit risk management purposes. Total commercial committed credit exposure decreased by $10.1 billion, or one percent, at December 31, 2009 compared to December 31, 2008. The decrease was largely driven by reductions in loans and leases partially offset by an increase in derivatives due to the acquisition of Merrill Lynch. Total commercial utilized credit exposure decreased to $494.4 billion at December 31, 2009 compared to $498.7 billion at December 31, 2008. Funded loans and leases declined due to limited demand for acquisition financing and capital expenditures in the large corporate and middle-market portfolios and as clients utilized the improved capital markets more extensively for their funding needs. With the economic outlook remaining uncertain, businesses are aggressively managing working capital and production capacity, maintaining low inventories and deferring capital spending. The increase in derivative assets was driven by the acquisition of Merrill Lynch substantially offset during 2009 by maturing transactions, mark-to-market adjustments from changing interest and foreign exchange rates, as well as narrower credit spreads. The loans and leases funded utilization rate was 57 percent at December 31, 2009 compared to 58 percent at December 31, 2008.
<table><tr><td></td><td colspan="6"> December 31</td></tr><tr><td></td><td colspan="2"> Commercial Utilized<sup>-1, 2</sup></td><td colspan="2"> Commercial Unfunded<sup>-1, 3, 4</sup></td><td colspan="2"> Total Commercial Committed<sup>-1</sup></td></tr><tr><td>(Dollars in millions)</td><td> 2009</td><td>2008</td><td> 2009</td><td>2008</td><td> 2009</td><td>2008</td></tr><tr><td>Loans and leases</td><td>$322,564</td><td>$342,767</td><td>$293,519</td><td>$300,856</td><td>$616,083</td><td>$643,623</td></tr><tr><td>Derivative assets<sup>-5</sup></td><td>80,689</td><td>62,252</td><td>–</td><td>–</td><td>80,689</td><td>62,252</td></tr><tr><td>Standby letters of credit and financial guarantees</td><td>70,238</td><td>72,840</td><td>6,008</td><td>4,740</td><td>76,246</td><td>77,580</td></tr><tr><td>Assets held-for-sale<sup>-6</sup></td><td>13,473</td><td>14,206</td><td>781</td><td>183</td><td>14,254</td><td>14,389</td></tr><tr><td>Bankers’ acceptances</td><td>3,658</td><td>3,382</td><td>16</td><td>13</td><td>3,674</td><td>3,395</td></tr><tr><td>Commercial letters of credit</td><td>2,958</td><td>2,974</td><td>569</td><td>791</td><td>3,527</td><td>3,765</td></tr><tr><td>Foreclosed properties and other</td><td>797</td><td>328</td><td>–</td><td>–</td><td>797</td><td>328</td></tr><tr><td> Total commercial credit exposure</td><td>$494,377</td><td>$498,749</td><td>$300,893</td><td>$306,583</td><td>$795,270</td><td>$805,332</td></tr></table>
(1) At December 31, 2009, total commercial utilized, total commercial unfunded and total commercial committed exposure include $88.5 billion, $25.7 billion and $114.2 billion, respectively, related to Merrill Lynch. (2) Total commercial utilized exposure at December 31, 2009 and 2008 includes loans and issued letters of credit accounted for under the fair value option and is comprised of loans outstanding of $4.9 billion and $5.4 billion, and letters of credit with a notional amount of $1.7 billion and $1.4 billion. (3) Total commercial unfunded exposure at December 31, 2009 and 2008 includes loan commitments accounted for under the fair value option with a notional amount of $25.3 billion and $15.5 billion. (4) Excludes unused business card lines which are not legally binding. (5) Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements, and have been reduced by cash collateral of $58.4 billion and $34.8 billion at December 31, 2009 and 2008. Not reflected in utilized and committed exposure is additional derivative collateral held of $16.2 billion and $13.4 billion which consists primarily of other marketable securities at December 31, 2009 and 2008. (6) Total commercial committed assets held-for-sale exposure consists of $9.0 billion and $12.1 billion of commercial LHFS exposure (e. g. , commercial mortgage and leveraged finance) and $5.3 billion and $2.3 billion of assets held-for-sale exposure at December 31, 2009 and 2008. Table 30 presents commercial utilized reservable criticized exposure by product type. Criticized exposure corresponds to the Special Mention, Substandard and Doubtful asset categories defined by regulatory authorities. In addition to reservable loans and leases, excluding those accounted for under the fair value option, exposure includes SBLCs, financial guarantees, bankers’ acceptances and commercial letters of credit for which we are legally bound to advance funds under prescribed conditions, during a specified period. Although funds have not been advanced, these exposure types are considered utilized for credit risk management purposes. Total commercial utilized reservable criticized exposure rose by $21.7 billion primarily due to increases in commercial real estate and commercial – domestic. Commercial real estate increased $10.0 billion primarily due to the non-homebuilder portfolio which has been impacted by the weak economy partially offset by a decrease in the homebuilder portfolio. The $9.3 billion increase in commercial – domestic reflects deterioration across various lines of business and industries, primarily in Global Banking. At December 31, 2009, approximately 85 percent of the loans within criticized reservable utilized exposure are secured.
<table><tr><td></td><td colspan="4"> December 31</td></tr><tr><td></td><td colspan="2">2009</td><td colspan="2">2008</td></tr><tr><td>(Dollars in millions)</td><td> Amount</td><td>Percent -1</td><td>Amount</td><td>Percent<sup>-1</sup></td></tr><tr><td>Commercial – domestic<sup>-2</sup></td><td>$28,259</td><td>11.66%</td><td>$18,963</td><td>7.20%</td></tr><tr><td>Commercial real estate</td><td>23,804</td><td>32.13</td><td>13,830</td><td>19.73</td></tr><tr><td>Commercial lease financing</td><td>2,229</td><td>10.04</td><td>1,352</td><td>6.03</td></tr><tr><td>Commercial – foreign</td><td>2,605</td><td>7.12</td><td>1,459</td><td>3.65</td></tr><tr><td></td><td>56,897</td><td>15.17</td><td>35,604</td><td>8.99</td></tr><tr><td>Small business commercial – domestic</td><td>1,789</td><td>10.18</td><td>1,333</td><td>6.94</td></tr><tr><td> Total commercial utilized reservable criticized exposure</td><td>$58,686</td><td>14.94</td><td>$36,937</td><td>8.90</td></tr></table>
(1) Percentages are calculated as commercial utilized reservable criticized exposure divided by total commercial utilized reservable exposure for each exposure category. (2) Excludes small business commercial – domestic exposure. The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions):
<table><tr><td></td><td>December 31, 2017</td></tr><tr><td>Beginning Balance</td><td>$78.7</td></tr><tr><td>Gains on assets sold</td><td>0.3</td></tr><tr><td>Change in fair value of assets</td><td>3.8</td></tr><tr><td>Net purchases and sales</td><td>5.2</td></tr><tr><td>Translation gain</td><td>3.0</td></tr><tr><td>Ending Balance</td><td>$91.0</td></tr></table>
We expect that we will have no legally required minimum funding requirements in 2018 for the qualified U. S. and Puerto Rico defined benefit retirement plans, nor do we expect to voluntarily contribute to these plans during 2018. Contributions to foreign defined benefit plans are estimated to be $17.0 million in 2018 . We do not expect the assets in any of our plans to be returned to us in the next year. Defined Contribution Plans We also sponsor defined contribution plans for substantially all of the U. S. and Puerto Rico employees and certain employees in other countries. The benefits offered under these plans are reflective of local customs and practices in the countries concerned. We expensed $47.9 million, $42.5 million and $40.2 million related to these plans for the years ended December 31, 2017, 2016 and 2015, respectively.15. Income Taxes 2017 Tax Act: The President signed U. S. tax reform legislation (“2017 Tax Act”) on December 22, 2017, which is considered the enactment date. The 2017 Tax Act includes a broad range of provisions, many of which significantly differ from those contained in previous U. S. tax law. Changes in tax law are accounted for in the period of enactment. As such, our 2017 consolidated financial statements reflect the immediate tax effect of the 2017 Tax Act. The 2017 Tax Act contains several key provisions including, among other things: ? a one-time tax on the mandatory deemed repatriation of post-1986 untaxed foreign earnings and profits (E&P), referred to as the toll charge; ? a reduction in the corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017; ? the introduction of a new U. S. tax on certain off-shore earnings referred to as global intangible low-taxed income (GILTI) at an effective tax rate of 10.5 percent for tax years beginning after December 31, 2017 (increasing to 13.125 percent for tax years beginning after December 31, 2025), with a partial offset by foreign tax credits; and ? the introduction of a territorial tax system beginning in 2018 by providing a 100 percent dividend received deduction on certain qualified dividends from foreign subsidiaries. During the fourth quarter of 2017, we recorded an income tax benefit of $1,272.4 million, which was comprised of the following: ? income tax benefit of $715.0 million for the one-time deemed repatriation of foreign earnings. This is composed of a $1,181.0 million benefit from the removal of a deferred tax liability we had recorded for the repatriation of foreign earnings prior to the 2017 Tax Act offset by $466.0 million for the toll charge recognized under the 2017 Tax Act. In accordance with the 2017 Tax Act, we expect to elect to pay the toll charge in installments over eight years. As of December 31, 2017, we have recorded current and non-current income tax liabilities related to the toll charge of $82.0 million and $384.0 million, respectively. ? an income tax benefit of $557.4 million, primarily related to the remeasurement of our deferred tax assets and liabilities at the enacted corporate income tax rate of 21 percent. The net benefit recorded was based on currently available information and interpretations made in applying the provisions of the 2017 Tax Act as of the time of filing this Annual Report on Form 10-K. We further refined our estimates related to the impact of the 2017 Tax Act subsequent to the issuance of our earnings release for the fourth quarter of 2017. In accordance with authoritative guidance issued by the SEC, the income tax effect for certain aspects of the 2017 Tax Act represent provisional amounts for which our accounting is incomplete, but with respect to which a reasonable estimate could be determined and recorded during the fourth quarter of 2017. The actual effects of the 2017 Tax Act and final amounts recorded may differ materially from our current estimate of provisional amounts due to, among other things, further interpretive guidance that may be issued by U. S. tax authorities or regulatory bodies, including the SEC and the FASB. We will continue to analyze the 2017 Tax Act and any additional guidance that may be issued so we can finalize the full effects of applying the new legislation on our financial statements in the measurement period, which ends in the fourth quarter of 2018. We continue to evaluate the impacts of the 2017 Tax Act and consider the amounts recorded to be provisional. In addition, we are still evaluating the GILTI provisions of the 2017 Tax Act and their impact, if any, on our consolidated financial statements as of December 31, 2017. The FASB allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat such as a tax cost in the year incurred. We have not yet determined which accounting policy to adopt because determining the impact of the GILTI provisions requires analysis of our existing legal entity structure, the reversal of our U. S. GAAP and U. S. tax basis differences in the assets and liabilities of our foreign subsidiaries, and our ability to offset any tax with foreign tax credits. As such, we did not record a deferred income tax |
2,002 | Which year is the amount of Benefit obligation at year end for Pension Benefits larger? | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) merchant acquiring business in the United Kingdom to the partnership. In addition, HSBC UK entered into a ten-year marketing alliance with the partnership in which HSBC UK will refer customers to the partnership for payment processing services in the United Kingdom. On June 23, 2008, we entered into a new five year, $200 million term loan to fund a portion of the acquisition. We funded the remaining purchase price with excess cash and our existing credit facilities. The term loan bears interest, at our election, at the prime rate or London Interbank Offered Rate plus a margin based on our leverage position. As of July 1, 2008, the interest rate on the term loan was 3.605%. The term loan calls for quarterly principal payments of $5 million beginning with the quarter ending August 31, 2008 and increasing to $10 million beginning with the quarter ending August 31, 2010 and $15 million beginning with the quarter ending August 31, 2011. The partnership agreement includes provisions pursuant to which HSBC UK may compel us to purchase, at fair value, additional membership units from HSBC UK (the “Put Option”). HSBC UK may exercise the Put Option on the fifth anniversary of the closing of the acquisition and on each anniversary thereafter. By exercising the Put Option, HSBC UK can require us to purchase, on an annual basis, up to 15% of the total membership units. Additionally, on the tenth anniversary of closing and each tenth anniversary thereafter, HSBC UK may compel us to purchase all of their membership units at fair value. While not redeemable until June 2013, we estimate the maximum total redemption amount of the minority interest under the Put Option would be $421.4 million, as of May 31, 2008. The purpose of this acquisition was to establish a presence in the United Kingdom. The key factors that contributed to the decision to make this acquisition include historical and prospective financial statement analysis and HSBC UK’s market share and retail presence in the United Kingdom. The purchase price was determined by analyzing the historical and prospective financial statements and applying relevant purchase price multiples. The purchase price totaled $441.1 million, consisting of $438.6 million cash consideration plus $2.5 million of direct out of pocket costs. The acquisition has been recorded using the purchase method of accounting, and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The following table summarizes the preliminary purchase price allocation:
<table><tr><td></td><td>Total</td></tr><tr><td>Goodwill</td><td>$294,741</td></tr><tr><td>Customer-related intangible assets</td><td>116,920</td></tr><tr><td>Contract-based intangible assets</td><td>13,437</td></tr><tr><td>Trademark</td><td>2,204</td></tr><tr><td>Property and equipment</td><td>26,955</td></tr><tr><td>Other current assets</td><td>100</td></tr><tr><td>Total assets acquired</td><td>454,357</td></tr><tr><td>Minority interest in equity of subsidiary (at historical cost)</td><td>-13,257</td></tr><tr><td>Net assets acquired</td><td>$441,100</td></tr></table>
Due to the recent timing of the transaction, the allocation of the purchase price is preliminary. All of the goodwill associated with the acquisition is expected to be deductible for tax purposes. The customer-related intangible assets have amortization periods of up to 13 years. The contract-based intangible assets have amortization periods of 7 years. The trademark has an amortization period of 5 years. Our long-term debt, including the current portion, was $31.1 billion at December 30, 2017 and $31.8 billion at December 31, 2016. The decrease in long- term debt was primarily due to our June 2017 repayment of approximately $2.0 billion aggregate principal amount of senior notes that matured in the period and our August 2017 repayment of the $600 million aggregate principal amount Term Loan Facility. The decrease was partially offset by approximately $1.5 billion aggregate principal amount of long-term debt issued in August 2017. Our long-term debt contains customary representations, covenants, and events of default. We were in compliance with all such covenants at December 30, 2017. See Note 16, Debt, to the consolidated financial statements for additional information. We have approximately $2.5 billion aggregate principal amount and $C200 million aggregate principal amount of senior notes that will mature in the third quarter of 2018. We expect to fund these long-term debt repayments primarily with new long-term debt issuances, cash on hand, and cash generated from our operating activities. Off-Balance Sheet Arrangements and Aggregate Contractual Obligations Off-Balance Sheet Arrangements: We do not have guarantees or other off-balance sheet financing arrangements that we believe are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures, or capital resources. See Note 14, Financing Arrangements, to the consolidated financial statements for a discussion of our accounts receivable securitization and factoring programs and other financing arrangements. Aggregate Contractual Obligations: The following table summarizes our contractual obligations at December 30, 2017 (in millions):
<table><tr><td></td><td colspan="5">Payments Due</td></tr><tr><td></td><td>2018</td><td>2019-2020</td><td>2021-2022</td><td>2023 and Thereafter</td><td>Total</td></tr><tr><td>Long-term debt<sup>(a)</sup></td><td>3,939</td><td>5,653</td><td>6,200</td><td>32,779</td><td>48,571</td></tr><tr><td>Capital leases<sup>(b)</sup></td><td>35</td><td>34</td><td>64</td><td>1</td><td>134</td></tr><tr><td>Operating leases<sup>(c)</sup></td><td>103</td><td>164</td><td>99</td><td>165</td><td>531</td></tr><tr><td>Purchase obligations<sup>(d)</sup></td><td>1,558</td><td>1,251</td><td>446</td><td>439</td><td>3,694</td></tr><tr><td>Other long-term liabilities<sup>(e)</sup></td><td>80</td><td>106</td><td>94</td><td>280</td><td>560</td></tr><tr><td>Total</td><td>5,715</td><td>7,208</td><td>6,903</td><td>33,664</td><td>53,490</td></tr></table>
(a) Amounts represent the expected cash payments of our long-term debt, including interest on variable and fixed rate long-term debt. Interest on variable rate long-term debt is calculated based on interest rates at December 30, 2017. (b) Amounts represent the expected cash payments of our capital leases, including expected cash payments of interest expense. (c) Operating leases represent the minimum rental commitments under non-cancelable operating leases. (d) We have purchase obligations for materials, supplies, property, plant and equipment, and co-packing, storage and distribution services based on projected needs to be utilized in the normal course of business. Other purchase obligations include commitments for marketing, advertising, capital expenditures, information technology, and professional services. Arrangements are considered purchase obligations if a contract specifies all significant terms, including fixed or minimum quantities to be purchased, a pricing structure, and approximate timing of the transaction. A few of these obligations are long-term and are based on minimum purchase requirements. Certain purchase obligations contain variable pricing components, and, as a result, actual cash payments are expected to fluctuate based on changes in these variable components. Due to the proprietary nature of some of our materials and processes, certain supply contracts contain penalty provisions for early terminations. We do not believe that a material amount of penalties is reasonably likely to be incurred under these contracts based upon historical experience and current expectations. We exclude amounts reflected on the consolidated balance sheet as accounts payable and accrued liabilities from the table above. (e) Other long-term liabilities primarily consist of estimated payments for the one-time toll charge related to U. S. tax reform, as well as postretirement benefit commitments. Certain other long-term liabilities related to income taxes, insurance accruals, and other accruals included on the consolidated balance sheet are excluded from the above table as we are unable to estimate the timing of payments for these items. Future payments related to other long-term liabilities decreased primarily due to payments of $1.2 billion in 2017 to pre- fund a portion of our U. S. postretirement plan benefits. See Note 10, Postemployment Benefits, to the consolidated financial statements for additional information. During the second quarter of 2016, we redeemed all outstanding shares of our Series A Preferred Stock, therefore we no longer pay Series A Preferred Stock dividends. See Note 17, Capital Stock, to the consolidated financial statements for additional information. Note 6 - Employee Benefit Plans Pension Plan and Other Postretirement Benefit Plans The Company has a non-contributory defined benefit pension plan covering substantially all of its domestic employees. The benefits are based on an employee’s years of service and average earnings for the 60 consecutive calendar months of highest compensation. The Company also has an unfunded restoration plan to ensure payments of amounts for which employees are entitled under the provisions of the pension plan, but which are subject to limitations imposed by federal tax laws. The Company’s funding policy has been to make annual contributions equal to the actuarially computed liability to the extent such amounts are deductible for income tax purposes. Plan assets consist of equity securities and fixed income investments. The Company sponsors other plans for the benefit of its employees and retirees. These plans include health care and life insurance benefits. The following table reflects the required disclosures on the Company’s pension and other postretirement benefit plans at December 31:
<table><tr><td></td><td colspan="2">Pension Benefits</td><td colspan="2">Other Benefits</td></tr><tr><td> (in thousands)</td><td>2002</td><td>2001</td><td>2002</td><td>2001</td></tr><tr><td> Change in benefit obligation</td><td></td><td></td><td></td><td></td></tr><tr><td>Benefit obligation at beginning of year</td><td>$89,587</td><td>$76,623</td><td>$2,688</td><td>$2,718</td></tr><tr><td>Adjustment for contributions paid in 2000</td><td></td><td>-54</td><td></td><td></td></tr><tr><td>Service cost</td><td>4,986</td><td>3,790</td><td>346</td><td>220</td></tr><tr><td>Interest cost</td><td>7,071</td><td>6,218</td><td>314</td><td>193</td></tr><tr><td>Amendments</td><td>380</td><td></td><td></td><td></td></tr><tr><td>Plan participants’ contributions</td><td></td><td></td><td>90</td><td>71</td></tr><tr><td>Actuarial (gain) loss</td><td>8,439</td><td>6,882</td><td>2,849</td><td>-333</td></tr><tr><td>Benefits paid</td><td>-4,239</td><td>-3,872</td><td>-146</td><td>-181</td></tr><tr><td>Benefit obligation at year end</td><td>$106,224</td><td>$89,587</td><td>$6,141</td><td>$2,688</td></tr><tr><td> Change in plan assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Fair value of plan assets at beginning of year</td><td>$53,570</td><td>$55,487</td><td></td><td>$$</td></tr><tr><td>Actual return on plan assets</td><td>-3,471</td><td>-1,541</td><td></td><td></td></tr><tr><td>Employer contribution</td><td>10,800</td><td>3,497</td><td>146</td><td>180</td></tr><tr><td>Benefits paid</td><td>-4,239</td><td>-3,873</td><td>-146</td><td>-180</td></tr><tr><td>Fair value of plan at end of year</td><td>$56,660</td><td>$53,570</td><td></td><td>$$</td></tr><tr><td>Fund status</td><td>$-49,564</td><td>$-36,017</td><td>$-6,141</td><td>$-2,688</td></tr><tr><td>Unrecognized net actuarial loss (gain)</td><td>23,366</td><td>6,826</td><td>2,472</td><td>-304</td></tr><tr><td>Unrecognized prior service cost</td><td>2,525</td><td>2,451</td><td>-244</td><td>-274</td></tr><tr><td>Unrecognized net transition obligation (assets)</td><td>1,167</td><td>1,191</td><td></td><td></td></tr><tr><td>Prepaid (accrued) benefit costs</td><td>$-22,506</td><td>$-25,549</td><td>$-3,913</td><td>$-3,266</td></tr><tr><td> Components of net periodic benefit cost</td><td></td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>$4,986</td><td>$3,790</td><td>$346</td><td>$220</td></tr><tr><td>Interest cost</td><td>7,071</td><td>6,218</td><td>314</td><td>193</td></tr><tr><td>Expected return on plan assets</td><td>-5,474</td><td>-4,899</td><td></td><td></td></tr><tr><td>Transition (assets) obligation recognition</td><td>24</td><td>24</td><td></td><td></td></tr><tr><td>Amortization of prior service cost</td><td>306</td><td>292</td><td>-30</td><td>-30</td></tr><tr><td>Recognized net actuarial loss (gain)</td><td>845</td><td>-66</td><td>73</td><td>-10</td></tr><tr><td>Net periodic benefit cost</td><td>$7,758</td><td>$5,359</td><td>$703</td><td>$373</td></tr><tr><td> Weighted-average assumptions as of December 31,</td><td></td><td></td><td></td><td></td></tr><tr><td>Discount rate</td><td>6.75%</td><td>7.25%</td><td>6.75%</td><td>7.25%</td></tr><tr><td>Expected return on plan assets</td><td>8.50%</td><td>8.50%</td><td></td><td></td></tr><tr><td>Rate of compensation increase</td><td>4.00%</td><td>4.75%</td><td>4.00%</td><td>5.50%</td></tr></table> |
2,828.66667 | What's the average of Policy fees in 2012, 2011, and 2008? | ITEM 8 / NOTE 7. INVESTMENTS Maiden Lane III The FRBNY completed the liquidation of ML III assets during the third quarter of 2012 and substantially all of the sales proceeds have been distributed in accordance with the priority of payments of the transaction. In 2012, we received total payments of approximately $8.5 billion, which included contractual and additional distributions and our original $5.0 billion equity interest in ML III. In 2012, we purchased $7.1 billion of securities through the FRBNY’s auction of ML III assets. Other Invested Assets The following table summarizes the carrying values of other invested assets:
<table><tr><td> December 31, <i>(in millions)</i> </td><td> 2012 </td><td>2011 </td></tr><tr><td>Alternative investments<sup>(a)</sup></td><td>$18,990</td><td>$18,793</td></tr><tr><td>Mutual funds</td><td>128</td><td>258</td></tr><tr><td>Investment real estate<sup>(b)</sup></td><td>3,195</td><td>2,778</td></tr><tr><td>Aircraft asset investments<sup>(c)</sup></td><td>984</td><td>1,100</td></tr><tr><td>Life settlement contracts</td><td>4,357</td><td>4,006</td></tr><tr><td>Retained interest in AIA</td><td>–</td><td>12,367</td></tr><tr><td>All other investments</td><td>1,463</td><td>1,442</td></tr><tr><td>Total</td><td>$29,117</td><td>$40,744</td></tr></table>
(a) Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships. (b) Net of accumulated depreciation of $469 million and $428 million in 2012 and 2011, respectively. (c) Consist primarily of AIG Life and Retirement investments in aircraft equipment held in trusts. Other Invested Assets Carried at Fair Value Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of DIB investments, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income (loss). These investments are subject to other-than-temporary impairment evaluation (see below for discussion on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $68 million and $269 million at December 31, 2012 and 2011, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss position for less than 12 months. Other Invested Assets – Equity Method Investments We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies. Under the equity method of accounting, our carrying value generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of DIB investments, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually. ITEM 8 / NOTE 12. DERIVATIVES AND HEDGE ACCOUNTING designated as hedges of the change in fair value of foreign currency denominated available-for-sale securities attributable to changes in foreign exchange rates. We previously designated certain interest rate swaps entered into by GCM with third parties as cash flow hedges of certain floating rate debt issued by ILFC, specifically to hedge the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate. We de-designated such cash flow hedges in December 2012 subsequent to the announcement of the ILFC Transaction. We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U. S. dollar functional currency foreign subsidiaries. We assess the hedge effectiveness and measure the amount of ineffectiveness for these hedge relationships based on changes in spot exchange rates. For the years ended December 31, 2012, 2011, and 2010 we recognized gains (losses) of $(74) million, $(13) million and $28 million, respectively, included in Foreign currency translation adjustment in Accumulated other comprehensive income related to the net investment hedge relationships. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges. The following table presents the effect of our derivative instruments in fair value hedging relationships in the Consolidated Statement of Operations:
<table><tr><td> Years Ended December 31, <i>(in millions)</i> </td><td colspan="2">2012</td><td>2011</td></tr><tr><td>Interest rate contracts:<sup>(a)</sup></td><td></td><td></td><td></td></tr><tr><td>Loss recognized in earnings on derivatives</td><td> $</td><td>–</td><td>$-3</td></tr><tr><td>Gain recognized in earnings on hedged items<sup>(b)</sup></td><td></td><td>124</td><td>152</td></tr><tr><td>Foreign exchange contracts:<sup>(a)</sup></td><td></td><td></td><td></td></tr><tr><td>Loss recognized in earnings on derivatives</td><td></td><td>-2</td><td>-1</td></tr><tr><td>Gain recognized in earnings on hedged items</td><td></td><td>2</td><td>1</td></tr></table>
(a) Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing, if any, are recorded in Net realized capital gains (losses). (b) Includes $124 million and $149 million, for the years ended December 31, 2012 and 2011, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting. The following table presents the effect of our derivative instruments in cash flow hedging relationships in the Consolidated Statement of Operations:
<table><tr><td> Years Ended December 31, <i>(in millions)</i> </td><td>2012</td><td>2011</td></tr><tr><td>Interest rate contracts<sup>(a)</sup>:</td><td></td><td></td></tr><tr><td>Gain (loss) recognized in OCI on derivatives</td><td>$-2</td><td>$-5</td></tr><tr><td>Gain (loss) reclassified from Accumulated OCI into earnings<sup>(b)</sup></td><td>-35</td><td>-55</td></tr></table>
(a) Hedge accounting was discontinued in December 2012 subsequent to the announcement of the ILFC Transaction. Gains and losses recognized in earnings are recorded in Income (loss) from discontinued operations. Previously the effective portion of the change in fair value of a derivative qualifying as a cash flow hedge was recorded in Accumulated other comprehensive income until earnings were affected by the variability of cash flows in the hedged item. Gains and losses reclassified from Accumulated other comprehensive income were previously recorded in Other income. Gains or losses recognized in earnings on derivatives for the ineffective portion were previously recorded in Net realized capital gains (losses). (b) Includes $19 million for the year ended December 2012, representing the reclassification from Accumulated other comprehensive income into earnings following the discontinuation of cash flow hedges of ILFC debt. ITEM 6 / SELECTED FINANCIAL DATA The Selected Consolidated Financial Data should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and accompanying notes included elsewhere herein.
<table><tr><td> </td><td colspan="5">Years Ended December 31,</td></tr><tr><td><i>(in millions, except per share data)</i> </td><td>2012</td><td>2011</td><td>2010 (a)</td><td>2009 (a)</td><td>2008</td></tr><tr><td> Revenues:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Premiums</td><td>$38,011</td><td>$38,990</td><td>$45,319</td><td>$48,583</td><td>$60,147</td></tr><tr><td>Policy fees</td><td>2,791</td><td>2,705</td><td>2,710</td><td>2,656</td><td>2,990</td></tr><tr><td>Net investment income</td><td>20,343</td><td>14,755</td><td>20,934</td><td>18,992</td><td>10,453</td></tr><tr><td>Net realized capital gains (losses)</td><td>929</td><td>701</td><td>-716</td><td>-3,787</td><td>-50,426</td></tr><tr><td>Other income</td><td>3,582</td><td>2,661</td><td>4,582</td><td>3,729</td><td>-34,941</td></tr><tr><td> Total revenues</td><td>65,656</td><td>59,812</td><td>72,829</td><td>70,173</td><td>-11,777</td></tr><tr><td> Benefits, claims and expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholder benefits and claims incurred</td><td>31,977</td><td>33,450</td><td>41,392</td><td>45,314</td><td>45,447</td></tr><tr><td>Interest credited to policyholder account balances</td><td>4,362</td><td>4,467</td><td>4,487</td><td>4,611</td><td>5,582</td></tr><tr><td>Amortization of deferred acquisition costs</td><td>5,709</td><td>5,486</td><td>5,821</td><td>6,670</td><td>6,425</td></tr><tr><td>Other acquisition and insurance expenses</td><td>9,235</td><td>8,458</td><td>10,163</td><td>9,815</td><td>14,783</td></tr><tr><td>Interest expense</td><td>2,319</td><td>2,444</td><td>6,742</td><td>13,237</td><td>14,440</td></tr><tr><td>Net loss on extinguishment of debt</td><td>9</td><td>2,847</td><td>104</td><td>–</td><td>–</td></tr><tr><td>Net (gain) loss on sale of properties and divested businesses</td><td>2</td><td>74</td><td>-19,566</td><td>1,271</td><td>–</td></tr><tr><td>Other expenses</td><td>2,721</td><td>2,470</td><td>3,439</td><td>5,282</td><td>5,842</td></tr><tr><td> Total benefits, claims and expenses</td><td>56,334</td><td>59,696</td><td>52,582</td><td>86,200</td><td>92,519</td></tr><tr><td>Income (loss) from continuing operations before income taxes<sup>(b)</sup></td><td>9,322</td><td>116</td><td>20,247</td><td>-16,027</td><td>-104,296</td></tr><tr><td>Income taxes expense (benefit)</td><td>1,570</td><td>-19,424</td><td>6,993</td><td>-2,551</td><td>-8,097</td></tr><tr><td>Income (loss) from continuing operations</td><td>7,752</td><td>19,540</td><td>13,254</td><td>-13,476</td><td>-96,199</td></tr><tr><td>Income (loss) from discontinued operations, net of taxes</td><td>-4,052</td><td>1,790</td><td>-969</td><td>3,750</td><td>-6,683</td></tr><tr><td> Net income (loss)</td><td>3,700</td><td>21,330</td><td>12,285</td><td>-9,726</td><td>-102,882</td></tr><tr><td> Net income (loss) attributable to AIG</td><td>3,438</td><td>20,622</td><td>10,058</td><td>-8,362</td><td>-101,784</td></tr><tr><td> Income (loss) per common share attributable to AIG common shareholders</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic and diluted</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Income (loss) from continuing operations</td><td>4.44</td><td>10.03</td><td>16.50</td><td>-98.52</td><td>-725.89</td></tr><tr><td>Income (loss) from discontinued operations</td><td>-2.40</td><td>0.98</td><td>-1.52</td><td>27.15</td><td>-49.91</td></tr><tr><td>Net income (loss) attributable to AIG</td><td>2.04</td><td>11.01</td><td>14.98</td><td>-71.37</td><td>-775.80</td></tr><tr><td>Dividends declared per common share</td><td>–</td><td>–</td><td>–</td><td>–</td><td>8.40</td></tr><tr><td> Year-end balance sheet data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total investments</td><td>375,824</td><td>410,438</td><td>410,412</td><td>601,165</td><td>636,912</td></tr><tr><td>Total assets</td><td>548,633</td><td>553,054</td><td>675,573</td><td>838,346</td><td>848,552</td></tr><tr><td>Long-term debt</td><td>48,500</td><td>75,253</td><td>106,461</td><td>136,733</td><td>177,485</td></tr><tr><td>Total liabilities</td><td>449,630</td><td>442,138</td><td>568,363</td><td>748,550</td><td>797,692</td></tr><tr><td>Total AIG shareholders' equity</td><td>98,002</td><td>101,538</td><td>78,856</td><td>60,585</td><td>40,844</td></tr><tr><td>Total equity</td><td>98,669</td><td>102,393</td><td>106,776</td><td>88,837</td><td>48,939</td></tr><tr><td>Book value per share<sup>(a)</sup></td><td>66.38</td><td>53.53</td><td>561.40</td><td>448.54</td><td>303.71</td></tr><tr><td>Book value per share, excluding Accumulated other comprehensive income (loss)<sup>(a)</sup><sup>(c)</sup></td><td>57.87</td><td>50.11</td><td>498.25</td><td>400.90</td><td>353.97</td></tr><tr><td>AIG Property Casualty combined ratio<sup>(d)</sup></td><td>108.6</td><td>108.8</td><td>116.8</td><td>108.4</td><td>102.1</td></tr><tr><td> Other data (from continuing operations):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Other-than-temporary impairments</td><td>1,167</td><td>1,280</td><td>3,039</td><td>6,696</td><td>41,867</td></tr><tr><td>Adjustment to federal and foreign deferred tax valuation allowance</td><td>-1,907</td><td>-18,307</td><td>1,361</td><td>2,986</td><td>22,172</td></tr><tr><td>Amortization of prepaid commitment fee</td><td>–</td><td>49</td><td>3,471</td><td>8,359</td><td>9,279</td></tr><tr><td>Catastrophe-related losses</td><td>$2,652</td><td>$3,307</td><td>$1,076</td><td>$53</td><td>$1,840</td></tr></table>
(a) Comparability between 2010 and 2009 data is affected by the deconsolidation of AIA in the fourth quarter of 2010. Book value per share, excluding Accumulated other comprehensive income (loss) is a non-GAAP measure. See Item 7. MD&A – Use of Non-GAAP Measures for additional information. Comparability of 2010, 2009 and 2008 is affected by a one for twenty reverse stock split. (b) Reduced by fourth quarter reserve strengthening charges of $4.2 billion and $2.2 billion in 2010 and 2009, respectively, related to the annual review of AIG Property Casualty loss and loss adjustment reserves. (c) Amounts for periods after December 31, 2008 have been revised to reflect reclassification of income taxes from AOCI to additional paid in capital to correct the presentation of components of AIG Shareholders’ Equity. See Note 1 to the Consolidated Financial Statements for additional information on the reclass. (d) See Item 7. MD&A – Results of Operations – AIG Property Casualty Operations for a reconciliation of the adjusted combined ratio. Management’s Discussion and Analysis Business-Specific Limits. The Firmwide Finance Committee sets asset and liability limits for each business and aged inventory limits for certain financial instruments as a disincentive to hold inventory over longer periods of time. These limits are set at levels which are close to actual operating levels in order to ensure prompt escalation and discussion among business managers and managers in our independent control and support functions on a routine basis. The Firmwide Finance Committee reviews and approves balance sheet limits on a quarterly basis and may also approve changes in limits on an ad hoc basis in response to changing business needs or market conditions. Monitoring of Key Metrics. We monitor key balance sheet metrics daily both by business and on a consolidated basis, including asset and liability size and composition, aged inventory, limit utilization, risk measures and capital usage. We allocate assets to businesses and review and analyze movements resulting from new business activity as well as market fluctuations. Scenario Analyses. We conduct scenario analyses to determine how we would manage the size and composition of our balance sheet and maintain appropriate funding, liquidity and capital positions in a variety of situations: ‰ These scenarios cover short-term and long-term time horizons using various macro-economic and firm-specific assumptions. We use these analyses to assist us in developing longer-term funding plans, including the level of unsecured debt issuances, the size of our secured funding program and the amount and composition of our equity capital. We also consider any potential future constraints, such as limits on our ability to grow our asset base in the absence of appropriate funding. ‰ Through our Internal Capital Adequacy Assessment Process (ICAAP), CCAR, the stress tests we are required to conduct under the Dodd-Frank Act, and our resolution and recovery planning, we further analyze how we would manage our balance sheet and risks through the duration of a severe crisis and we develop plans to access funding, generate liquidity, and/or redeploy or issue equity capital, as appropriate. Balance Sheet Allocation In addition to preparing our consolidated statements of financial condition in accordance with U. S. GAAP, we prepare a balance sheet that generally allocates assets to our businesses, which is a non-GAAP presentation and may not be comparable to similar non-GAAP presentations used by other companies. We believe that presenting our assets on this basis is meaningful because it is consistent with the way management views and manages risks associated with the firm’s assets and better enables investors to assess the liquidity of the firm’s assets. The table below presents a summary of this balance sheet allocation. |
325.2 | What's the total amount of the Financial standby letters of credit in the years where Benefit plans-3 is less than -6,250 (in million) | 7. INCENTIVE PLANS Discretionary Annual Incentive Awards Citigroup grants immediate cash bonus payments and various forms of immediate and deferred awards as part of its discretionary annual incentive award program involving a large segment of Citigroup’s employees worldwide. Most of the shares of common stock issued by Citigroup as part of its equity compensation programs are to settle the vesting of the stock components of these awards. Discretionary annual incentive awards are generally awarded in the first quarter of the year based on the previous year’s performance. Awards valued at less than U. S. $100,000 (or the local currency equivalent) are generally paid entirely in the form of an immediate cash bonus. Pursuant to Citigroup policy and/or regulatory requirements, certain employees and officers are subject to mandatory deferrals of incentive pay and generally receive 25%– 60% of their awards in a combination of restricted or deferred stock, deferred cash stock units or deferred cash. Discretionary annual incentive awards to many employees in the EU are subject to deferral requirements regardless of the total award value, with at least 50% of the immediate incentive delivered in the form of a stock payment award subject to a restriction on sale or transfer (generally, for 12 months). Deferred annual incentive awards may be delivered in the form of one or more award types: a restricted or deferred stock award under Citi’s Capital Accumulation Program (CAP), or a deferred cash stock unit award and/or a deferred cash award under Citi’s Deferred Cash Award Plan. The applicable mix of awards may vary based on the employee’s minimum deferral requirement and the country of employment. Subject to certain exceptions (principally, for retirement-eligible employees), continuous employment within Citigroup is required to vest in CAP, deferred cash stock unit and deferred cash awards. Post employment vesting by retirement-eligible employees and participants who meet other conditions is generally conditioned upon their refraining from competition with Citigroup during the remaining vesting period, unless the employment relationship has been terminated by Citigroup under certain conditions. Generally, the deferred awards vest in equal annual installments over three- or four-year periods. Vested CAP awards are delivered in shares of common stock. Deferred cash awards are payable in cash and, except as prohibited by applicable regulatory guidance, earn a fixed notional rate of interest that is paid only if and when the underlying principal award amount vests. Deferred cash stock unit awards are payable in cash at the vesting value of the underlying stock. Generally, in the EU, vested CAP shares are subject to a restriction on sale or transfer after vesting, and vested deferred cash awards and deferred cash stock units are subject to hold back (generally, for 12 months in each case). Unvested CAP, deferred cash stock units and deferred cash awards are subject to one or more clawback provisions that apply in certain circumstances, including gross misconduct. CAP and deferred cash stock unit awards, made to certain employees, are subject to a formulaic performancebased vesting condition pursuant to which amounts otherwise scheduled to vest will be reduced based on the amount of any pretax loss in the participant’s business in the calendar year preceding the scheduled vesting date. A minimum reduction of 20% applies for the first dollar of loss for CAP and deferred cash stock unit awards. In addition, deferred cash awards are subject to a discretionary performance-based vesting condition under which an amount otherwise scheduled to vest may be reduced in the event of a “material adverse outcome” for which a participant has “significant responsibility. ” These awards are also subject to an additional clawback provision pursuant to which unvested awards may be canceled if the employee engaged in misconduct or exercised materially imprudent judgment, or failed to supervise or escalate the behavior of other employees who did. Sign-on and Long-Term Retention Awards Stock awards and deferred cash awards may be made at various times during the year as sign-on awards to induce new hires to join Citi or to highpotential employees as long-term retention awards. Vesting periods and other terms and conditions pertaining to these awards tend to vary by grant. Generally, recipients must remain employed through the vesting dates to vest in the awards, except in cases of death, disability or involuntary termination other than for gross misconduct. These awards do not usually provide for post employment vesting by retirement-eligible participants. Outstanding (Unvested) Stock Awards A summary of the status of unvested stock awards granted as discretionary annual incentive or sign-on and long-term retention awards is presented below:
<table><tr><td>Unvested stock awards</td><td>Shares</td><td>Weighted-average grantdate fairvalue per share</td></tr><tr><td>Unvested at December 31, 2017</td><td>36,931,040</td><td>$47.89</td></tr><tr><td>Granted<sup>-1</sup></td><td>12,896,599</td><td>73.87</td></tr><tr><td>Canceled</td><td>-1,315,456</td><td>54.50</td></tr><tr><td>Vested<sup>-2</sup></td><td>-16,783,587</td><td>49.54</td></tr><tr><td>Unvested at December 31, 2018</td><td>31,728,596</td><td>$57.30</td></tr></table>
(1) The weighted-average fair value of the shares granted during 2017 and 2016 was $59.12 and $37.35, respectively. (2) The weighted-average fair value of the shares vesting during 2018 was approximately $77.65 per share. Total unrecognized compensation cost related to unvested stock awards was $538 million at December 31, 2018. The cost is expected to be recognized over a weighted-average period of 1.7 years. 19. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (AOCI) Changes in each component of Citigroup鈥檚 Accumulated other comprehensive income (loss) were as follows:
<table><tr><td>In millions of dollars</td><td>Netunrealizedgains (losses)on investment securities</td><td>Debt valuation adjustment (DVA)<sup>(1)</sup></td><td>Cash flow hedges<sup>-2</sup></td><td>Benefit plans<sup>-3</sup></td><td>Foreigncurrencytranslationadjustment (CTA), net of hedges<sup>(4)</sup></td><td>Excluded component of fair value hedges<sup>-5</sup></td><td>Accumulatedothercomprehensive income (loss)</td></tr><tr><td>Balance, December 31, 2015</td><td>$-907</td><td>$—</td><td>$-617</td><td>$-5,116</td><td>$-22,704</td><td>$—</td><td>$-29,344</td></tr><tr><td>Adjustment to opening balance, netof taxes<sup>-1</sup></td><td>$—</td><td>$-15</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$-15</td></tr><tr><td>Adjusted balance, beginning of period</td><td>$-907</td><td>$-15</td><td>$-617</td><td>$-5,116</td><td>$-22,704</td><td>$—</td><td>$-29,359</td></tr><tr><td>Other comprehensive income beforereclassifications</td><td>$531</td><td>$-335</td><td>$-88</td><td>$-208</td><td>$-2,802</td><td>$—</td><td>$-2,902</td></tr><tr><td>Increase (decrease) due to amountsreclassified from AOCI<sup></sup></td><td>-423</td><td>-2</td><td>145</td><td>160</td><td>—</td><td>—</td><td>-120</td></tr><tr><td>Change, net of taxes<sup></sup></td><td>$108</td><td>$-337</td><td>$57</td><td>$-48</td><td>$-2,802</td><td>$—</td><td>$-3,022</td></tr><tr><td>Balance, December 31, 2016</td><td>$-799</td><td>$-352</td><td>$-560</td><td>$-5,164</td><td>$-25,506</td><td>$—</td><td>$-32,381</td></tr><tr><td>Adjustment to opening balance, netof taxes<sup>-6</sup></td><td>$504</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$—</td><td>$504</td></tr><tr><td>Adjusted balance, beginning of period</td><td>$-295</td><td>$-352</td><td>$-560</td><td>$-5,164</td><td>$-25,506</td><td>$—</td><td>$-31,877</td></tr><tr><td>Impact of Tax Reform<sup>-7</sup></td><td>-223</td><td>-139</td><td>-113</td><td>-1,020</td><td>-1,809</td><td>—</td><td>-3,304</td></tr><tr><td>Other comprehensive income before reclassifications</td><td>-186</td><td>-426</td><td>-111</td><td>-158</td><td>1,607</td><td>—</td><td>726</td></tr><tr><td>Increase (decrease) due to amounts reclassified from AOCI</td><td>-454</td><td>-4</td><td>86</td><td>159</td><td>—</td><td>—</td><td>-213</td></tr><tr><td>Change, net of taxes<sup></sup></td><td>$-863</td><td>$-569</td><td>$-138</td><td>$-1,019</td><td>$-202</td><td>$—</td><td>$-2,791</td></tr><tr><td>Balance at December 31, 2017</td><td>$-1,158</td><td>$-921</td><td>$-698</td><td>$-6,183</td><td>$-25,708</td><td>$—</td><td>$-34,668</td></tr><tr><td>Adjustment to opening balance, netof taxes<sup>-8</sup></td><td>-3</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>-3</td></tr><tr><td>Adjusted balance, beginning of period</td><td>$-1,161</td><td>$-921</td><td>$-698</td><td>$-6,183</td><td>$-25,708</td><td>$—</td><td>$-34,671</td></tr><tr><td>Other comprehensive income beforereclassifications</td><td>-866</td><td>1,081</td><td>-135</td><td>-240</td><td>-2,607</td><td>-57</td><td>-2,824</td></tr><tr><td>Increase (decrease) due to amountsreclassified from AOCI<sup>(9)</sup></td><td>-223</td><td>32</td><td>105</td><td>166</td><td>245</td><td>—</td><td>325</td></tr><tr><td>Change, net of taxes</td><td>$-1,089</td><td>$1,113</td><td>$-30</td><td>$-74</td><td>$-2,362</td><td>$-57</td><td>$-2,499</td></tr><tr><td>Balance at December 31, 2018</td><td>$-2,250</td><td>$192</td><td>$-728</td><td>$-6,257</td><td>$-28,070</td><td>$-57</td><td>$-37,170</td></tr></table>
(1)Changes in DVA are reflected as a component of AOCI, pursuant to the adoption of only the provisions of ASU 2016-01 relating to the presentation of DVA on fair value option liabilities. See Note 1 to the Consolidated Financial Statements. (2)Primarily driven by Citi鈥檚 pay fixed/receive floating interest rate swap programs that hedge the floating rates on liabilities. (3)Primarily reflects adjustments based on the quarterly actuarial valuations of Citi鈥檚 significant pension and postretirement plans, annual actuarial valuations of all other plans and amortization of amounts previously recognized in Other comprehensive income. (4)Primarily reflects the movements in (by order of impact) the Brazilian real, Indian rupee, Mexican peso, and Australian dollar against the U. S. dollar and changes in related tax effects and hedges for the year ended Primarily reflects the movements in (by order of impact) the Brazilian real, Indian rupee, Mexican peso, and Australian dollar against the U. S. dollar and changes in related tax effects and hedges for the year ended December聽31, 2018. Primarily reflects the movements in (by order of impact) the Euro, Mexican peso, Polish zloty and Korean won against the U. S. dollar and changes in related tax effects and hedges for the year ended December聽31, 2017. Primarily reflects the movements in (by order of impact) the Mexican peso, Euro, British pound and Indian rupee against the U. S. dollar and changes in related tax effects and hedges for the year ended December聽31, 2016. (5)Beginning in the first quarter of 2018, changes in the excluded component of fair value hedges are reflected as a component of AOCI, pursuant to the early adoption of ASU No.2017-12, Targeted Improvements to Accounting for Hedging Activities. See Note 1 of the Consolidated Financial Statements for further information regarding this change. (6)In the second quarter of 2017, Citi early adopted ASU No.2017-08. 聽Upon adoption, a cumulative effect adjustment was recorded to reduce Retained earnings, effective January 1, 2017, for the incremental amortization of cumulative fair value hedge adjustments on callable state and municipal debt securities. See Note 1 to the Consolidated Financial Statements. (7)In the fourth quarter of 2017, Citi adopted ASU 2018-02, which transferred these amounts from AOCI to Retained earnings. See Note 1 to the Consolidated Financial Statements. (8)Citi adopted ASU 2016-01 and ASU 2018-03 on January 1, 2018. Upon adoption, a cumulative effect adjustment was recorded from AOCI to Retained earnings for net unrealized gains on former AFS equity securities. For additional information, see Note 1 to the Consolidated Financial Statements (9)Includes the impact of the release upon meeting the accounting trigger for substantial liquidation of Citi鈥檚 Japan Consumer Finance business during the fourth quarter of 2018. See Note 1 to the Consolidated Financial Statements. Cash Flow Hedges Citigroup hedges the variability of forecasted cash flows associated with floating-rate assets/liabilities and other forecasted transactions. Variable cash flows from those liabilities are synthetically converted to fixed-rate cash flows by entering into receive-variable, pay-fixed interest rate swaps and receivevariable, pay-fixed forward-starting interest rate swaps. Variable cash flows associated with certain assets are synthetically converted to fixed-rate cash flows by entering into receive-fixed, pay-variable interest rate swaps. These cash flow hedging relationships use either regression analysis or dollar-offset ratio analysis to assess whether the hedging relationships are highly effective at inception and on an ongoing basis. Prior to the adoption of ASU 2017-12, Citigroup designated the risk being hedged as the risk of overall variability in the hedged cash flows for certain items. With the adoption of ASU 2017-12, Citigroup hedges the variability from changes in a contractually specified rate and recognizes the entire change in fair value of the cash flow hedging instruments in AOCI. Prior to the adoption of ASU 2017-12, to the extent that these derivatives were not fully effective, changes in their fair values in excess of changes in the value of the hedged transactions were immediately included in Other revenue. With the adoption of ASU 2017-12, such amounts are no longer required to be immediately recognized in income, but instead the full change in the value of the hedging instrument is required to be recognized in AOCI, and then recognized in earnings in the same period that the cash flows impact earnings. The pretax change in AOCI from cash flow hedges is presented below:
<table><tr><td></td><td colspan="4">Year ended December 31,</td></tr><tr><td>In millions of dollars</td><td colspan="2">2018</td><td>2017</td><td>2016</td></tr><tr><td>Amount of gain (loss) recognized in AOCI on derivative</td><td colspan="2"></td><td></td><td></td></tr><tr><td>Interest rate contracts<sup>-1</sup></td><td>$-361</td><td></td><td>$-165</td><td>$-219</td></tr><tr><td>Foreign exchange contracts</td><td colspan="2">5</td><td>-8</td><td>69</td></tr><tr><td>Total gain (loss) recognized in AOCI</td><td>$-356</td><td></td><td>$-173</td><td>$-150</td></tr><tr><td>Amount of gain (loss) reclassified from AOCI to earnings</td><td>Otherrevenue</td><td>Net interestrevenue</td><td>Otherrevenue</td><td>Otherrevenue</td></tr><tr><td>Interest rate contracts<sup>-1</sup></td><td>$—</td><td>$-301</td><td>$-126</td><td>$-140</td></tr><tr><td>Foreign exchange contracts</td><td>-17</td><td>—</td><td>-10</td><td>-93</td></tr><tr><td>Total gain (loss) reclassified from AOCI into earnings</td><td>$-17</td><td>$-301</td><td>$-136</td><td>$-233</td></tr></table>
(1) After January 1, 2018, all amounts reclassified into earnings for interest rate contracts are included in Interest income/Interest expense (Net interest revenue). For all other hedges, including interest rate hedges prior to January 1, 2018, the amounts reclassified to earnings are included primarily in Other revenue and Net interest revenue in the Consolidated Statement of Income. For cash flow hedges, the changes in the fair value of the hedging derivative remain in AOCI on the Consolidated Balance Sheet and will be included in the earnings of future periods to offset the variability of the hedged cash flows when such cash flows affect earnings. The net gain (loss) associated with cash flow hedges expected to be reclassified from AOCI within 12?months of December?31, 2018 is approximately $404 million. The maximum length of time over which forecasted cash flows are hedged is 10 years. The after-tax impact of cash flow hedges on AOCI is shown in Note?19 to the Consolidated Financial Statements. The following tables present information about Citi’s guarantees:
<table><tr><td></td><td colspan="3">Maximum potential amount of future payments</td><td></td></tr><tr><td>In billions of dollars at December 31, 2018, except carrying value in millions</td><td>Expire within1 year</td><td>Expire after1 year</td><td>Total amountoutstanding</td><td>Carrying value(in millions of dollars)</td></tr><tr><td>Financial standby letters of credit</td><td>$31.8</td><td>$65.3</td><td>$97.1</td><td>$131</td></tr><tr><td>Performance guarantees</td><td>7.7</td><td>4.2</td><td>11.9</td><td>29</td></tr><tr><td>Derivative instruments considered to be guarantees</td><td>23.5</td><td>87.4</td><td>110.9</td><td>567</td></tr><tr><td>Loans sold with recourse</td><td>—</td><td>1.2</td><td>1.2</td><td>9</td></tr><tr><td>Securities lending indemnifications<sup>-1</sup></td><td>98.3</td><td>—</td><td>98.3</td><td>—</td></tr><tr><td>Credit card merchant processing<sup>-1(2)</sup></td><td>95.0</td><td>—</td><td>95.0</td><td>—</td></tr><tr><td>Credit card arrangements with partners</td><td>0.3</td><td>0.8</td><td>1.1</td><td>162</td></tr><tr><td>Custody indemnifications and other</td><td>—</td><td>35.4</td><td>35.4</td><td>41</td></tr><tr><td>Total</td><td>$256.6</td><td>$194.3</td><td>$450.9</td><td>$939</td></tr></table>
Maximum potential amount of future payments |
-0.53929 | what was the percentage change in revenues for investments in 50% ( 50 % ) or less owned investments accounted for using the equity method between 2001 and 2002? | affiliated company. The loss recorded on the sale was approximately $14 million and is recorded as a loss on sale of assets and asset impairment expenses in the accompanying consolidated statements of operations. In the second quarter of 2002, the Company recorded an impairment charge of approximately $40 million, after income taxes, on an equity method investment in a telecommunications company in Latin America held by EDC. The impairment charge resulted from sustained poor operating performance coupled with recent funding problems at the invested company. During 2001, the Company lost operational control of Central Electricity Supply Corporation (‘‘CESCO’’), a distribution company located in the state of Orissa, India. CESCO is accounted for as a cost method investment. In May 2000, the Company completed the acquisition of 100% of Tractebel Power Ltd (‘‘TPL’’) for approximately $67 million and assumed liabilities of approximately $200 million. TPL owned 46% of Nigen. The Company also acquired an additional 6% interest in Nigen from minority stockholders during the year ended December 31, 2000 through the issuance of approximately 99,000 common shares of AES stock valued at approximately $4.9 million. With the completion of these transactions, the Company owns approximately 98% of Nigen’s common stock and began consolidating its financial results beginning May 12, 2000. Approximately $100 million of the purchase price was allocated to excess of costs over net assets acquired and was amortized through January 1, 2002 at which time the Company adopted SFAS No.142 and ceased amortization of goodwill. In August 2000, a subsidiary of the Company acquired a 49% interest in Songas Limited (‘‘Songas’’) for approximately $40 million. The Company acquired an additional 16.79% of Songas for approximately $12.5 million, and the Company began consolidating this entity in 2002. Songas owns the Songo Songo Gas-to-Electricity Project in Tanzania. In December 2002, the Company signed a Sales Purchase Agreement to sell Songas. The sale is expected to close in early 2003. See Note 4 for further discussion of the transaction. The following table presents summarized comparative financial information (in millions) for the Company’s investments in 50% or less owned investments accounted for using the equity method.
<table><tr><td>AS OF AND FOR THE YEARS ENDED DECEMBER 31,</td><td>2002</td><td>2001</td><td>2000</td></tr><tr><td>Revenues</td><td>$2,832</td><td>$6,147</td><td>$6,241</td></tr><tr><td>Operating Income</td><td>695</td><td>1,717</td><td>1,989</td></tr><tr><td>Net Income</td><td>229</td><td>650</td><td>859</td></tr><tr><td>Current Assets</td><td>1,097</td><td>3,700</td><td>2,423</td></tr><tr><td>Noncurrent Assets</td><td>6,751</td><td>14,942</td><td>13,080</td></tr><tr><td>Current Liabilities</td><td>1,418</td><td>3,510</td><td>3,370</td></tr><tr><td>Noncurrent Liabilities</td><td>3,349</td><td>8,297</td><td>5,927</td></tr><tr><td>Stockholder's Equity</td><td>3,081</td><td>6,835</td><td>6,206</td></tr></table>
In 2002, 2001 and 2000, the results of operations and the financial position of CEMIG were negatively impacted by the devaluation of the Brazilian Real and the impairment charge recorded in 2002. The Brazilian Real devalued 32%, 19% and 8% for the years ended December 31, 2002, 2001 and 2000, respectively. The Company recorded $83 million, $210 million, and $64 million of pre-tax non-cash foreign currency transaction losses on its investments in Brazilian equity method affiliates during 2002, 2001 and 2000, respectively. Consumers purchases the balance of its required gas supply under incremental firm transportation contracts, firm city gate contracts and, as needed, interruptible transportation contracts. The amount of interruptible transportation service and its use vary primarily with the price for such service and the availability and price of the spot supplies being purchased and transported. Consumers’ use of interruptible transportation is generally in off-peak summer months and after Consumers has fully utilized the services under the firm transportation agreements. Enterprises Enterprises, through various subsidiaries and certain equity investments, is engaged primarily in domestic independent power production. Enterprises’ operating revenue included in Continuing Operations in our consolidated financial statements was $383 million in 2007, $438 million in 2006, and $693 million in 2005. Operating revenue included in Discontinued Operations in our consolidated financial statements was $235 million in 2007, $684 million in 2006, and $409 million in 2005. In 2007, Enterprises made a significant change in business strategy by exiting the international marketplace and refocusing its business strategy to concentrate on its independent power business in the United States. Independent Power Production CMS Generation was formed in 1986. It invested in and operated non-utility power generation plants in the United States and abroad. The independent power production business segment’s operating revenue included in Continuing Operations in our consolidated financial statements was $41 million in 2007, $103 million in 2006, and $104 million in 2005. Operating revenue included in Discontinued Operations in our consolidated financial statements was $124 million in 2007, $437 million in 2006, and $211 million in 2005. In 2007, Enterprises sold CMS Generation and all of its international assets and power production facilities and transferred its domestic independent power plant operations to its subsidiary, Hydra-Co. For more information on the asset sales, see ITEM 8. CMS ENERGY’S FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA — NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — NOTE 2. ASSET SALES, DISCONTINUED OPERATIONS AND IMPAIRMENT CHARGES — ASSET SALES. IndependentPowerProductionProperties: AtDecember 31,2007,CMSEnergyhadownershipinterestsin independent power plants totaling 1,199 gross MW or 1,078 net MW (net MW reflects that portion of the gross capacity in relation to CMS Energy’s ownership interest). The following table details CMS Energy’s interest in independent power plants at December 31, 2007:
<table><tr><td> Location</td><td> Fuel Type</td><td> Ownership Interest (%)</td><td> Gross Capacity (MW)</td><td> Percentage of Gross Capacity Under Long-Term Contract (%)</td></tr><tr><td>California</td><td>Wood</td><td>37.8</td><td>36</td><td>100</td></tr><tr><td>Connecticut</td><td>Scrap tire</td><td>100</td><td>31</td><td>0</td></tr><tr><td>Michigan</td><td>Coal</td><td>50</td><td>70</td><td>100</td></tr><tr><td>Michigan</td><td>Natural gas</td><td>100</td><td>710</td><td>61</td></tr><tr><td>Michigan</td><td>Natural gas</td><td>100</td><td>224</td><td>0</td></tr><tr><td>Michigan</td><td>Wood</td><td>50</td><td>40</td><td>100</td></tr><tr><td>Michigan</td><td>Wood</td><td>50</td><td>38</td><td>100</td></tr><tr><td>North Carolina</td><td>Wood</td><td>50</td><td>50</td><td>0</td></tr><tr><td> Total</td><td></td><td></td><td>1,199</td><td></td></tr></table>
For information on capital expenditures, see ITEM 7. CMS ENERGY’S MANAGEMENT’S DISCUSSION AND ANALYSIS — CAPITAL RESOURCES AND LIQUIDITY. CMS ENERGY CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) December 24, 2008. The settlement includes a $20 million decrease in depreciation rates and requires that we not request a new gas general rate increase prior to May 1, 2009. OTHER CONTINGENCIES — INDEMNIFICATIONS Equatorial Guinea Tax Claim: In 2004, we received a request for indemnification from the purchaser of CMS Oil and Gas. The indemnification claim relates to the sale of our oil, gas and methanol projects in Equatorial Guinea and the claim of the government of Equatorial Guinea that we owe $142 million in taxes in connection with that sale. CMS Energy concluded that the government’s tax claim is without merit and the purchaser of CMS Oil and Gas submitted a response to the government rejecting the claim. The government of Equatorial Guinea has indicated that it still intends to pursue its claim. We cannot predict the financial impact or outcome of this matter. Moroccan Tax Claim: In May 2007, we sold our 50 percent interest in Jorf Lasfar. As part of the sale agreement, we agreed to indemnify the purchaser for 50 percent of any tax assessments on Jorf Lasfar attributable to tax years prior to the sale. In December 2007, the Moroccan tax authority concluded its audit of Jorf Lasfar for tax years 2003 through 2005. The audit asserted deficiencies in certain corporate and withholding taxes. In January 2009, we paid $18 million, which was charged against a tax indemnification liability established when we recorded the sale of Jorf Lasfar, and accordingly it did not affect earnings. Marathon Indemnity Claim regarding F. T. Barr Claim: On December 3, 2001, F. T. Barr, an individual with an overriding royalty interest in production from the Alba field, filed a lawsuit in Harris County District Court in Texas against CMS Energy, CMS Oil and Gas and other defendants alleging that his overriding royalty payments related to Alba field production were improperly calculated. CMS Oil and Gas believes that Barr was paid properly on gas sales and that he was not entitled to the additional overriding royalty payment sought. All parties signed a confidential settlement agreement on April 26, 2004. The settlement resolved claims between Barr and the defendants, and the involved CMS Energy entities reserved all defenses to any indemnity claim relating to the settlement. There is disagreement between Marathon and certain current or former CMS Energy entities as to the existence and scope of any indemnity obligations to Marathon in connection with the settlement. Between April 2005 and April 2008, there were no further communications between Marathon and CMS Energy entities regarding this matter. In April 2008, Marathon indicated its intent to pursue the indemnity claim. Present and former CMS Energy entities and Marathon entered into an agreement tolling the statute of limitations on any claim by Marathon under the indemnity. CMS Energy entities dispute Marathon’s claim, and will vigorously oppose it if raised in any legal proceeding. CMS Energy entities also will assert that Marathon has suffered minimal, if any, damages. CMS Energy cannot predict the outcome of this matter. If Marathon’s claim were sustained, it would have a material effect on CMS Energy’s future earnings and cash flow. Guarantees and Indemnifications: FIN 45 requires a guarantor, upon issuance of a guarantee, to recognize a liability for the fair value of the obligation it undertakes in issuing the guarantee. To measure the fair value of a guarantee liability, we recognize a liability for any premium received or receivable in exchange for the guarantee. For a guarantee issued as part of a larger transaction, such as in association with an asset sale or executory contract, we recognize a liability for any premium that we would have received had we issued the guarantee as a single item. The following table describes our guarantees at December 31, 2008:
<table><tr><td> Guarantee Description</td><td> Issue Date</td><td> Expiration Date</td><td> Maximum Obligation</td><td> FIN 45 Carrying Amount</td></tr><tr><td></td><td colspan="4"> In Millions</td></tr><tr><td>Indemnifications from asset sales and other agreements</td><td>Various</td><td>Indefinite</td><td>$1,445(a)</td><td>$84(b)</td></tr><tr><td>Surety bonds and other indemnifications</td><td>Various</td><td>Indefinite</td><td>35</td><td>1</td></tr><tr><td>Guarantees and put options</td><td>Various</td><td>Various through September 2027</td><td>89(c)</td><td>1</td></tr></table>
ratings, and general information on market movements for investment grade state and municipal securities normally considered by market participants when pricing such debt securities. Foreign Corporate Bonds: Foreign corporate debt securities were valued based on quoted market prices, when available, or on yields available on comparable securities of issuers with similar credit ratings. Common Stocks: Common stocks in the OPEB Plan consist of equity securities with low transaction costs that were actively managed and tracked by the S&P 500 Index. These securities were valued at their quoted closing prices. Mutual Funds: Mutual funds represent shares in registered investment companies that are priced based on the daily quoted NAVs that are publicly available and are the basis for transactions to buy or sell shares in the funds. Pooled Funds: Pooled funds include both common and collective trust funds as well as special funds that contain only employee benefit plan assets from two or more unrelated benefit plans. Presented in the following table are the investment components of these funds: |
-0.15954 | What is the growing rate of Annual in the years with the least As of January 1 for Number of Awards | damages to natural resources allegedly caused by the discharge of hazardous substances from two former waste disposal sites in New Jersey. During the fourth quarter, the Company negotiated a settlement of New Jersey’s claims. Under the terms of the settlement, the company will transfer to the State of New Jersey 150 acres of undeveloped land with groundwater recharge potential, which the Company acquired for purposes of the settlement, and will pay the state’s attorneys’ fees. Notice of the settlement was published for public comment in December 2007, and no objections were received. As a result, the Company and the State of New Jersey have signed the formal settlement agreement pursuant to which the Company will transfer title to the property and will be dismissed from the lawsuit, which will continue against the codefendants. Accrued Liabilities and Insurance Receivables Related to Legal Proceedings The Company complies with the requirements of Statement of Financial Accounting Standards No.5, “Accounting for Contingencies,” and related guidance, and records liabilities for legal proceedings in those instances where it can reasonably estimate the amount of the loss and where liability is probable. Where the reasonable estimate of the probable loss is a range, the Company records the most likely estimate of the loss, or the low end of the range if there is no one best estimate. The Company either discloses the amount of a possible loss or range of loss in excess of established reserves if estimable, or states that such an estimate cannot be made. For those insured matters where the Company has taken a reserve, the Company also records receivables for the amount of insurance that it expects to recover under the Company’s insurance program. For those insured matters where the Company has not taken a reserve because the liability is not probable or the amount of the liability is not estimable, or both, but where the Company has incurred an expense in defending itself, the Company records receivables for the amount of insurance that it expects to recover for the expense incurred. The Company discloses significant legal proceedings even where liability is not probable or the amount of the liability is not estimable, or both, if the Company believes there is at least a reasonable possibility that a loss may be incurred. Because litigation is subject to inherent uncertainties, and unfavorable rulings or developments could occur, there can be no certainty that the Company may not ultimately incur charges in excess of presently recorded liabilities. A future adverse ruling, settlement, or unfavorable development could result in future charges that could have a material adverse effect on the Company’s results of operations or cash flows in the period in which they are recorded. The Company currently believes that such future charges, if any, would not have a material adverse effect on the consolidated financial position of the Company, taking into account its significant available insurance coverage. Based on experience and developments, the Company periodically reexamines its estimates of probable liabilities and associated expenses and receivables, and whether it is able to estimate a liability previously determined to be not estimable and/or not probable. Where appropriate, the Company makes additions to or adjustments of its estimated liabilities. As a result, the current estimates of the potential impact on the Company’s consolidated financial position, results of operations and cash flows for the legal proceedings and claims pending against the Company could change in the future. The Company estimates insurance receivables based on an analysis of its numerous policies, including their exclusions, pertinent case law interpreting comparable policies, its experience with similar claims, and assessment of the nature of the claim, and records an amount it has concluded is likely to be recovered. The following table shows the major categories of on-going litigation, environmental remediation and other environmental liabilities for which the Company has been able to estimate its probable liability and for which the Company has taken reserves and the related insurance receivables:
<table><tr><td>At December 31 (Millions)</td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td>Breast implant liabilities</td><td>$1</td><td>$4</td><td>$7</td></tr><tr><td>Breast implant receivables</td><td>64</td><td>93</td><td>130</td></tr><tr><td>Respirator mask/asbestos liabilities</td><td>121</td><td>181</td><td>210</td></tr><tr><td>Respirator mask/asbestos receivables</td><td>332</td><td>380</td><td>447</td></tr><tr><td>Environmental remediation liabilities</td><td>37</td><td>44</td><td>30</td></tr><tr><td>Environmental remediation receivables</td><td>15</td><td>15</td><td>15</td></tr><tr><td>Other environmental liabilities</td><td>147</td><td>14</td><td>8</td></tr></table>
For those significant pending legal proceedings that do not appear in the table and that are not the subject of pending settlement agreements, the Company has determined that liability is not probable or the amount of the liability is not estimable, or both, and the Company is unable to estimate the possible loss or range of loss at this time. The amounts in the preceding table with respect to breast implant and environmental remediation represent the Company’s best estimate of the respective liabilities. The Company does not believe that there is any single best estimate of the respirator/mask/asbestos liability or the other environmental liabilities shown above, nor that it can reliably estimate the amount or range of amounts by which those liabilities may exceed the reserves the Company has established. one year volatility, the median of the term of the expected life rolling volatility, the median of the most recent term of the expected life volatility of 3M stock, and the implied volatility on the grant date. The expected term assumption is based on the weighted average of historical grants. Restricted Stock and Restricted Stock Units The following table summarizes restricted stock and restricted stock unit activity for the years ended December 31:
<table><tr><td></td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td></td><td>Number of Awards</td><td>Weighted Average Grant Date Fair Value</td><td>Number of Awards</td><td>Weighted Average Grant Date Fair Value</td><td>Number of Awards</td><td>Weighted Average Grant Date Fair Value</td></tr><tr><td>Nonvested balance —</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>As of January 1</td><td>2,817,786</td><td>$104.41</td><td>3,105,361</td><td>$92.31</td><td>3,261,562</td><td>$85.17</td></tr><tr><td>Granted</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Annual</td><td>671,204</td><td>165.86</td><td>798,615</td><td>126.79</td><td>946,774</td><td>101.57</td></tr><tr><td>Other</td><td>26,886</td><td>156.94</td><td>78,252</td><td>152.74</td><td>44,401</td><td>111.19</td></tr><tr><td>Vested</td><td>-1,010,612</td><td>89.99</td><td>-1,100,675</td><td>90.37</td><td>-1,100,095</td><td>79.93</td></tr><tr><td>Forfeited</td><td>-64,176</td><td>118.99</td><td>-63,767</td><td>97.23</td><td>-47,281</td><td>90.82</td></tr><tr><td>As of December 31</td><td>2,441,088</td><td>$127.47</td><td>2,817,786</td><td>$104.41</td><td>3,105,361</td><td>$92.31</td></tr></table>
As of December 31, 2015, there was $84 million of compensation expense that has yet to be recognized related to nonvested restricted stock and restricted stock units. This expense is expected to be recognized over the remaining weightedaverage vesting period of 24 months. The total fair value of restricted stock and restricted stock units that vested during the years ended December 31, 2015, 2014 and 2013 was $166 million, $145 million and $114 million, respectively. The Company’s actual tax benefits realized for the tax deductions related to the vesting of restricted stock and restricted stock units for the years ended December 31, 2015, 2014 and 2013 was $62 million, $54 million and $43 million, respectively. Restricted stock units granted under the 3M 2008 Long-Term Incentive Plan generally vest three years following the grant date assuming continued employment. Dividend equivalents equal to the dividends payable on the same number of shares of 3M common stock accrue on these restricted stock units during the vesting period, although no dividend equivalents are paid on any of these restricted stock units that are forfeited prior to the vesting date. Dividends are paid out in cash at the vest date on restricted stock units, except for performance shares which do not earn dividends. Since the rights to dividends are forfeitable, there is no impact on basic earnings per share calculations. Weighted average restricted stock unit shares outstanding are included in the computation of diluted earnings per share. Performance Shares Instead of restricted stock units, the Company makes annual grants of performance shares to members of its executive management. The 2015 performance criteria for these performance shares (organic volume growth, return on invested capital, free cash flow conversion, and earnings per share growth) were selected because the Company believes that they are important drivers of long-term stockholder value. The number of shares of 3M common stock that could actually be delivered at the end of the three-year performance period may be anywhere from 0% to 200% of each performance share granted, depending on the performance of the Company during such performance period. Non-substantive vesting requires that expense for the performance shares be recognized over one or three years depending on when each individual became a 3M executive. Performance shares do not accrue dividends during the performance period. Therefore, the grant date fair value is determined by reducing the closing stock price on the date of grant by the net present value of dividends during the performance period. Pension and Postretirement Obligations: 3M has various company-sponsored retirement plans covering substantially all U. S. employees and many employees outside the United States. The primary U. S. defined-benefit pension plan was closed to new participants effective January 1, 2009. The Company accounts for its defined benefit pension and postretirement health care and life insurance benefit plans in accordance with Accounting Standard Codification (ASC) 715, Compensation — Retirement Benefits, in measuring plan assets and benefit obligations and in determining the amount of net periodic benefit cost. ASC 715 requires employers to recognize the underfunded or overfunded status of a defined benefit pension or postretirement plan as an asset or liability in its statement of financial position and recognize changes in the funded status in the year in which the changes occur through accumulated other comprehensive income, which is a component of stockholders’ equity. While the company believes the valuation methods used to determine the fair value of plan assets are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. See Note 11 for additional discussion of actuarial assumptions used in determining pension and postretirement health care liabilities and expenses. Pension benefits associated with these plans are generally based primarily on each participant’s years of service, compensation, and age at retirement or termination. The benefit obligation represents the present value of the benefits that employees are entitled to in the future for services already rendered as of the measurement date. The Company measures the present value of these future benefits by projecting benefit payment cash flows for each future period and discounting these cash flows back to the December 31 measurement date, using the yields of a portfolio of high quality, fixed-income debt instruments that would produce cash flows sufficient in timing and amount to settle projected future benefits. Historically, the single aggregated discount rate used for each plan’s benefit obligation was also used for the calculation of all net periodic benefit costs, including the measurement of the service and interest costs. Beginning in 2016, 3M changed the method used to estimate the service and interest cost components of the net periodic pension and other postretirement benefit costs. The new method measures service cost and interest cost separately using the spot yield curve approach applied to each corresponding obligation. Service costs are determined based on duration-specific spot rates applied to the service cost cash flows. The interest cost calculation is determined by applying duration-specific spot rates to the year-by-year projected benefit payments. The spot yield curve approach does not affect the measurement of the total benefit obligations as the change in service and interest costs offset in the actuarial gains and losses recorded in other comprehensive income. The Company changed to the new method to provide a more precise measure of service and interest costs by improving the correlation between the projected benefit cash flows and the discrete spot yield curve rates. The Company accounted for this change as a change in estimate prospectively beginning in the first quarter of 2016. As a result of the change to the spot yield curve approach, 2016 defined benefit pension and postretirement net periodic benefit cost is expected to decrease by $180 million. Including this $180 million, 3M expects global defined benefit pension and postretirement expense in 2016 (before settlements, curtailments, special termination benefits and other) to decrease by approximately $320 million pre-tax when compared to 2015. Using this methodology, the Company determined discount rates for its plans as follow:
<table><tr><td></td><td>U.S. Qualified Pension</td><td>International Pension (weighted average)</td><td>U.S. Postretirement Medical</td></tr><tr><td>December 31, 2014 Liability and 2015 Net Periodic Benefit Cost:</td><td></td><td></td><td></td></tr><tr><td>Single discount rate</td><td>4.10%</td><td>3.11%</td><td>4.07%</td></tr><tr><td>December 31, 2015 Liability:</td><td></td><td></td><td></td></tr><tr><td>Benefit obligation</td><td>4.47%</td><td>3.12%</td><td>4.32%</td></tr><tr><td>2016 Net Periodic Benefit Cost Components:</td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>4.72%</td><td>2.84%</td><td>4.60%</td></tr><tr><td>Interest cost</td><td>3.77%</td><td>2.72%</td><td>3.44%</td></tr></table>
Another significant element in determining the Company’s pension expense in accordance with ASC 715 is the expected return on plan assets, which is based on historical results for similar allocations among asset classes. For the primary U. S. qualified pension plan, the expected long-term rate of return on an annualized basis for 2016 is 7.50%, 0.25% lower than 2015. Refer to Note 11 for information on how the 2015 rate was determined. Return on assets assumptions for |
0.45861 | by what percentage did total residential mortgages increase from 2011 to 2012? | Financial derivatives involve, to varying degrees, interest rate, market and credit risk. For interest rate swaps and total return swaps, options and futures contracts, only periodic cash payments and, with respect to options, premiums are exchanged. Therefore, cash requirements and exposure to credit risk are significantly less than the notional amount on these instruments. Further information on our financial derivatives is presented in Note 1 Accounting Policies and Note 17 Financial Derivatives in the Notes To Consolidated Financial Statements in Item 8 of this Report, which is incorporated here by reference. Not all elements of interest rate, market and credit risk are addressed through the use of financial or other derivatives, and such instruments may be ineffective for their intended purposes due to unanticipated market changes, among other reasons. The following table summarizes the notional or contractual amounts and net fair value of financial derivatives at December 31, 2012 and December 31, 2011. Table 54: Financial Derivatives Summary
<table><tr><td></td><td colspan="2">December 31, 2012</td><td colspan="2">December 31, 2011</td></tr><tr><td>In millions</td><td>Notional/ ContractualAmount</td><td>Net Fair Value (a)</td><td>Notional/ Contractual Amount</td><td>Net Fair Value (a)</td></tr><tr><td> Derivatives designated as hedging instruments under GAAP</td><td></td><td></td><td></td><td></td></tr><tr><td>Total derivatives designated as hedging instruments</td><td>$29,270</td><td>$1,720</td><td>$29,234</td><td>$1,772</td></tr><tr><td> Derivatives not designated as hedging instruments under GAAP</td><td></td><td></td><td></td><td></td></tr><tr><td>Total derivatives used for residential mortgage banking activities</td><td>$166,819</td><td>$588</td><td>$196,991</td><td>$565</td></tr><tr><td>Total derivatives used for commercial mortgage banking activities</td><td>4,606</td><td>-23</td><td>2,720</td><td>-21</td></tr><tr><td>Total derivatives used for customer-related activities</td><td>163,848</td><td>30</td><td>158,095</td><td>-132</td></tr><tr><td>Total derivatives used for other risk management activities</td><td>1,813</td><td>-357</td><td>4,289</td><td>-327</td></tr><tr><td>Total derivatives not designated as hedging instruments</td><td>$337,086</td><td>$238</td><td>$362,095</td><td>$85</td></tr><tr><td>Total Derivatives</td><td>$366,356</td><td>$1,958</td><td>$391,329</td><td>$1,857</td></tr></table>
(a) Represents the net fair value of assets and liabilities.2011 VERSUS 2010 CONSOLIDATED INCOME STATEMENT REVIEW Summary Results Net income for 2011 was $3.1 billion, or $5.64 per diluted common share, compared with $3.4 billion, or $5.74 per diluted common share, for 2010. The decrease from 2010 was primarily due to an $850 million, or 6%, reduction in total revenue, a $492 million, or 6%, increase in noninterest expense and the impact of the $328 million after-tax gain on the sale of GIS recognized in 2010, partially offset by a $1.3 billion, or 54%, decrease in the provision for credit losses in 2011. In addition, 2010 net income attributable to common shareholders was also impacted by a noncash reduction of $250 million in connection with the redemption of TARP preferred stock. Net Interest Income Net interest income was $8.7 billion for 2011 down from $9.2 billion in 2010. The net interest margin decreased to 3.92% in 2011 compared with 4.14% for 2010, primarily due to the impact of lower purchase accounting accretion, a decline in the rate on average loan balances and the low interest rate environment partially offset by lower funding costs. Noninterest Income Noninterest income was $5.6 billion for 2011 and $5.9 billion for 2010. Noninterest income for 2011 reflected higher asset management fees and other income, higher residential mortgage banking revenue, and lower net other-thantemporary impairments (OTTI), that were offset by a decrease in corporate service fees primarily due to a reduction in the value of commercial mortgage servicing rights, lower service charges on deposits from the impact of Regulation E rules pertaining to overdraft fees, a decrease in net gains on sales of securities and lower consumer services fees due, in part, to a decline in interchange fees on individual debit card transactions in the fourth quarter partially offset by higher transaction volumes throughout 2011. Asset management revenue, including BlackRock, increased $34 million to $1.1 billion in 2011 compared to 2010. The increase was driven by strong sales performance by our Asset Management Group and somewhat higher equity earnings from our BlackRock investment. Discretionary assets under management at December 31, 2011 totaled $107 billion compared with $108 billion at December 31, 2010.
<table><tr><td></td><td colspan="5">At or for the year ended December 31</td></tr><tr><td>Dollars in millions, except as noted</td><td>2012 (a) (b)</td><td>2011 (b)</td><td>2010 (b)</td><td>2009 (b)</td><td>2008 (c)</td></tr><tr><td> BALANCESHEETHIGHLIGHTS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Assets</td><td>$305,107</td><td>$271,205</td><td>$264,284</td><td>$269,863</td><td>$291,081</td></tr><tr><td>Loans</td><td>185,856</td><td>159,014</td><td>150,595</td><td>157,543</td><td>175,489</td></tr><tr><td>Allowance for loan and lease losses</td><td>4,036</td><td>4,347</td><td>4,887</td><td>5,072</td><td>3,917</td></tr><tr><td>Interest-earning deposits with banks</td><td>3,984</td><td>1,169</td><td>1,610</td><td>4,488</td><td>14,859</td></tr><tr><td>Investment securities</td><td>61,406</td><td>60,634</td><td>64,262</td><td>56,027</td><td>43,473</td></tr><tr><td>Loans held for sale</td><td>3,693</td><td>2,936</td><td>3,492</td><td>2,539</td><td>4,366</td></tr><tr><td>Goodwill and other intangible assets</td><td>10,869</td><td>10,144</td><td>10,753</td><td>12,909</td><td>11,688</td></tr><tr><td>Equity investments</td><td>10,877</td><td>10,134</td><td>9,220</td><td>10,254</td><td>8,554</td></tr><tr><td>Noninterest-bearing deposits</td><td>69,980</td><td>59,048</td><td>50,019</td><td>44,384</td><td>37,148</td></tr><tr><td>Interest-bearing deposits</td><td>143,162</td><td>128,918</td><td>133,371</td><td>142,538</td><td>155,717</td></tr><tr><td>Total deposits</td><td>213,142</td><td>187,966</td><td>183,390</td><td>186,922</td><td>192,865</td></tr><tr><td>Transaction deposits (d)</td><td>176,705</td><td>147,637</td><td>134,654</td><td>126,244</td><td>110,997</td></tr><tr><td>Borrowed funds (e)</td><td>40,907</td><td>36,704</td><td>39,488</td><td>39,261</td><td>52,240</td></tr><tr><td>Total shareholders’ equity</td><td>39,003</td><td>34,053</td><td>30,242</td><td>29,942</td><td>25,422</td></tr><tr><td>Common shareholders’ equity</td><td>35,413</td><td>32,417</td><td>29,596</td><td>22,011</td><td>17,490</td></tr><tr><td> CLIENTASSETS(billions)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Discretionary assets under management</td><td>$112</td><td>$107</td><td>$108</td><td>$103</td><td>$103</td></tr><tr><td>Nondiscretionary assets under management</td><td>112</td><td>103</td><td>104</td><td>102</td><td>125</td></tr><tr><td>Total assets under administration</td><td>224</td><td>210</td><td>212</td><td>205</td><td>228</td></tr><tr><td>Brokerage account assets (f)</td><td>38</td><td>34</td><td>34</td><td>32</td><td>29</td></tr><tr><td>Total client assets</td><td>$262</td><td>$244</td><td>$246</td><td>$237</td><td>$257</td></tr><tr><td> SELECTEDRATIOS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest margin (g)</td><td>3.94%</td><td>3.92%</td><td>4.14%</td><td>3.82%</td><td>3.37%</td></tr><tr><td>Noninterest income to total revenue</td><td>38</td><td>39</td><td>39</td><td>44</td><td>39</td></tr><tr><td>Efficiency</td><td>68</td><td>64</td><td>57</td><td>56</td><td>59</td></tr><tr><td>Return on</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average common shareholders’ equity</td><td>8.31</td><td>9.56</td><td>10.88</td><td>9.78</td><td>6.52</td></tr><tr><td>Average assets</td><td>1.02</td><td>1.16</td><td>1.28</td><td>.87</td><td>.64</td></tr><tr><td>Loans to deposits</td><td>87</td><td>85</td><td>82</td><td>84</td><td>91</td></tr><tr><td>Dividend payout</td><td>29.0</td><td>20.2</td><td>6.8</td><td>21.4</td><td>104.6</td></tr><tr><td>Tier 1 common</td><td>9.6</td><td>10.3</td><td>9.8</td><td>6.0</td><td>4.8</td></tr><tr><td>Tier 1 risk-based</td><td>11.6</td><td>12.6</td><td>12.1</td><td>11.4</td><td>9.7</td></tr><tr><td>Common shareholders’ equity to total assets</td><td>11.6</td><td>12.0</td><td>11.2</td><td>8.2</td><td>6.0</td></tr><tr><td>Average common shareholders’ equity to average assets</td><td>11.5</td><td>11.9</td><td>10.4</td><td>7.2</td><td>9.6</td></tr><tr><td> SELECTEDSTATISTICS</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Employees</td><td>56,285</td><td>51,891</td><td>50,769</td><td>55,820</td><td>59,595</td></tr><tr><td>Retail Banking branches</td><td>2,881</td><td>2,511</td><td>2,470</td><td>2,513</td><td>2,581</td></tr><tr><td>ATMs</td><td>7,282</td><td>6,806</td><td>6,673</td><td>6,473</td><td>6,233</td></tr><tr><td>Residential mortgage servicing portfolio (billions)</td><td>$135</td><td>$131</td><td>$139</td><td>$158</td><td>$187</td></tr><tr><td>Commercial mortgage servicing portfolio (billions)</td><td>$282</td><td>$267</td><td>$266</td><td>$287</td><td>$270</td></tr></table>
(a) Includes the impact of RBC Bank (USA), which we acquired on March 2, 2012. (b) Includes the impact of National City, which we acquired on December 31, 2008. (c) Includes the impact of National City except for the following Selected Ratios: Net interest margin, Noninterest income to total revenue, Efficiency, Return on Average common shareholders’ equity, Return on Average assets, Dividend payout and Average common shareholders’ equity to average assets. (d) Represents the sum of interest-bearing money market deposits, interest-bearing demand deposits, and noninterest-bearing deposits. (e) Includes long-term borrowings of $19.3 billion, $20.9 billion, $24.8 billion, $26.3 billion and $33.6 billion for 2012, 2011, 2010, 2009 and 2008, respectively. Borrowings which mature more than one year after December 31, 2012 are considered to be long-term. (f) Amounts for 2012, 2011 and 2010 include cash and money market balances. (g) Calculated as taxable-equivalent net interest income divided by average earning assets. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under accounting principles generally accepted in the United States of America (GAAP) on the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the years 2012, 2011, 2010, 2009 and 2008 were $144 million, $104 million, $81 million, $65 million and $36 million, respectively. RESIDENTIAL MORTGAGE-BACKED SECURITIES At December 31, 2012, our residential mortgage-backed securities portfolio was comprised of $31.4 billion fair value of US government agency-backed securities and $6.1 billion fair value of non-agency (private issuer) securities. The agency securities are generally collateralized by 1-4 family, conforming, fixed-rate residential mortgages. The non-agency securities are also generally collateralized by 1-4 family residential mortgages. The mortgage loans underlying the non-agency securities are generally non-conforming (i. e. , original balances in excess of the amount qualifying for agency securities) and predominately have interest rates that are fixed for a period of time, after which the rate adjusts to a floating rate based upon a contractual spread that is indexed to a market rate (i. e. , a “hybrid ARM”), or interest rates that are fixed for the term of the loan. Substantially all of the non-agency securities are senior tranches in the securitization structure and at origination had credit protection in the form of credit enhancement, overcollateralization and/or excess spread accounts. During 2012, we recorded OTTI credit losses of $99 million on non-agency residential mortgage-backed securities. All of the losses were associated with securities rated below investment grade. As of December 31, 2012, the noncredit portion of impairment recorded in Accumulated other comprehensive income for non-agency residential mortgagebacked securities for which we have recorded an OTTI credit loss totaled $150 million and the related securities had a fair value of $3.7 billion. The fair value of sub-investment grade investment securities for which we have not recorded an OTTI credit loss as of December 31, 2012 totaled $1.9 billion, with unrealized net gains of $114 million. COMMERCIAL MORTGAGE-BACKED SECURITIES The fair value of the non-agency commercial mortgagebacked securities portfolio was $5.9 billion at December 31, 2012 and consisted of fixed-rate, private-issuer securities collateralized by non-residential properties, primarily retail properties, office buildings, and multi-family housing. The agency commercial mortgage-backed securities portfolio was $2.0 billion fair value at December 31, 2012 consisting of multi-family housing. Substantially all of the securities are the most senior tranches in the subordination structure. There were no OTTI credit losses on commercial mortgagebacked securities during 2012. ASSET-BACKED SECURITIES The fair value of the asset-backed securities portfolio was $6.5 billion at December 31, 2012 and consisted of fixed-rate and floating-rate, private-issuer securities collateralized primarily by various consumer credit products, including residential mortgage loans, credit cards, automobile loans, and student loans. Substantially all of the securities are senior tranches in the securitization structure and have credit protection in the form of credit enhancement, over-collateralization and/or excess spread accounts. We recorded OTTI credit losses of $11 million on assetbacked securities during 2012. All of the securities are collateralized by first lien and second lien residential mortgage loans and are rated below investment grade. As of December 31, 2012, the noncredit portion of impairment recorded in Accumulated other comprehensive income for asset-backed securities for which we have recorded an OTTI credit loss totaled $52 million and the related securities had a fair value of $603 million. For the sub-investment grade investment securities (available for sale and held to maturity) for which we have not recorded an OTTI loss through December 31, 2012, the fair value was $47 million, with unrealized net losses of $3 million. The results of our security-level assessments indicate that we will recover the cost basis of these securities. Note 8 Investment Securities in the Notes To Consolidated Financial Statements in Item 8 of this Report provides additional information on OTTI losses and further detail regarding our process for assessing OTTI. If current housing and economic conditions were to worsen, and if market volatility and illiquidity were to worsen, or if market interest rates were to increase appreciably, the valuation of our investment securities portfolio could be adversely affected and we could incur additional OTTI credit losses that would impact our Consolidated Income Statement. LOANS HELD FOR SALE Table 15: Loans Held For Sale
<table><tr><td>In millions</td><td>December 312012</td><td>December 312011</td></tr><tr><td>Commercial mortgages at fair value</td><td>$772</td><td>$843</td></tr><tr><td>Commercial mortgages at lower of cost or market</td><td>620</td><td>451</td></tr><tr><td>Total commercial mortgages</td><td>1,392</td><td>1,294</td></tr><tr><td>Residential mortgages at fair value</td><td>2,096</td><td>1,415</td></tr><tr><td>Residential mortgages at lower of cost or market</td><td>124</td><td>107</td></tr><tr><td>Total residential mortgages</td><td>2,220</td><td>1,522</td></tr><tr><td>Other</td><td>81</td><td>120</td></tr><tr><td>Total</td><td>$3,693</td><td>$2,936</td></tr></table>
We stopped originating commercial mortgage loans held for sale designated at fair value in 2008 and continue pursuing opportunities to reduce these positions at appropriate prices. At December 31, 2012, the balance relating to these loans was $772 million, compared to $843 million at December 31, 2011. We sold $32 million in unpaid principal balances of these commercial mortgage loans held for sale carried at fair value in 2012 and sold $25 million in 2011. |
181,404 | What is the total amount of Investments of consolidated investment products of 2010, and California of Number ofCustomers ? | PART I ITEM 1. BUSINESS Our Company Founded in 1886, American Water Works Company, Inc. , (the “Company,” “American Water” or “AWW”) is a Delaware holding company. American Water is the most geographically diversified, as well as the largest publicly-traded, United States water and wastewater utility company, as measured by both operating revenues and population served. As a holding company, we conduct substantially all of our business operations through our subsidiaries. Our approximately 6,400 employees provide an estimated 15 million people with drinking water, wastewater and/or other water-related services in 47 states and one Canadian province. Operating Segments We report our results of operations in two operating segments: the Regulated Businesses and the MarketBased Operations. Additional information with respect to our operating segment results is included in the section entitled “Item 7—Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Note 18 of the Consolidated Financial Statements. Regulated Businesses Our primary business involves the ownership of subsidiaries that provide water and wastewater utility services to residential, commercial, industrial and other customers, including sale for resale and public authority customers. We report the results of this business in our Regulated Businesses segment. Our subsidiaries that provide these services are generally subject to economic regulation by certain state commissions or other entities engaged in economic regulation, hereafter referred to as Public Utility Commissions, or “PUCs,” of the states in which we operate. The federal and state governments also regulate environmental, health and safety, and water quality matters. Our Regulated Businesses segment operating revenues were $2,674.3 million for 2014, $2,539.9 for 2013, $2,564.4 million for 2012, accounting for 88.8%, 90.1% and 89.9%, respectively, of total operating revenues for the same periods. The following table sets forth our Regulated Businesses operating revenues, number of customers and an estimate of population served as of December 31, 2014:
<table><tr><td></td><td>OperatingRevenues(In millions)</td><td>% of Total</td><td>Number ofCustomers</td><td>% of Total</td><td>EstimatedPopulationServed(In millions)</td><td>% of Total</td></tr><tr><td>New Jersey</td><td>$652.3</td><td>24.5%</td><td>648,066</td><td>20.2%</td><td>2.7</td><td>22.7%</td></tr><tr><td>Pennsylvania</td><td>605.4</td><td>22.6%</td><td>666,415</td><td>20.7%</td><td>2.2</td><td>18.5%</td></tr><tr><td>Missouri</td><td>270.2</td><td>10.1%</td><td>464,498</td><td>14.4%</td><td>1.5</td><td>12.7%</td></tr><tr><td>Illinois (a)</td><td>262.3</td><td>9.8%</td><td>312,017</td><td>9.7%</td><td>1.3</td><td>10.9%</td></tr><tr><td>California</td><td>209.8</td><td>7.8%</td><td>174,198</td><td>5.4%</td><td>0.6</td><td>5.0%</td></tr><tr><td>Indiana</td><td>200.6</td><td>7.5%</td><td>293,666</td><td>9.1%</td><td>1.2</td><td>10.1%</td></tr><tr><td>West Virginia (b)</td><td>127.0</td><td>4.7%</td><td>170,371</td><td>5.3%</td><td>0.6</td><td>5.0%</td></tr><tr><td>Subtotal (Top Seven States)</td><td>2,327.6</td><td>87.0%</td><td>2,729,231</td><td>84.8%</td><td>10.1</td><td>84.9%</td></tr><tr><td>Other (c)</td><td>346.7</td><td>13.0%</td><td>489,961</td><td>15.2%</td><td>1.8</td><td>15.1%</td></tr><tr><td>Total Regulated Businesses</td><td>$2,674.3</td><td>100.0%</td><td>3,219,192</td><td>100.0%</td><td>11.9</td><td>100.0%</td></tr></table>
(a) Includes Illinois-American Water Company, which we refer to as ILAWC and American Lake Water Company, also a regulated subsidiary in Illinois. The company’s Condensed Consolidated Statement of Changes in Equity in Part II, Item 8, Financial Statements and Supplementary Data, contains a detailed analysis of the changes in balance sheet equity line items. The following table presents a comparative analysis of significant detailed balance sheet assets and liabilities:
<table><tr><td>$ in millions</td><td>2011</td><td>2010</td><td>$ Change</td><td>% Change</td></tr><tr><td>Cash and cash equivalents</td><td>727.4</td><td>740.5</td><td>-13.1</td><td>-1.8%</td></tr><tr><td>Unsettled fund receivables</td><td>444.4</td><td>513.4</td><td>-69.0</td><td>-13.4%</td></tr><tr><td>Current investments</td><td>283.7</td><td>308.8</td><td>-25.1</td><td>-8.1%</td></tr><tr><td>Assets held for policyholders</td><td>1,243.5</td><td>1,295.4</td><td>-51.9</td><td>-4.0%</td></tr><tr><td>Non-current investments</td><td>200.8</td><td>164.4</td><td>36.4</td><td>22.1%</td></tr><tr><td>Investments of consolidated investment products</td><td>6,629.0</td><td>7,206.0</td><td>-577.0</td><td>-8.0%</td></tr><tr><td>Intangible assets, net</td><td>1,322.8</td><td>1,337.2</td><td>-14.4</td><td>-1.1%</td></tr><tr><td>Goodwill</td><td>6,907.9</td><td>6,980.2</td><td>-72.3</td><td>-1.0%</td></tr><tr><td>Unsettled fund payables</td><td>439.6</td><td>504.8</td><td>-65.2</td><td>-12.9%</td></tr><tr><td>Policyholder payables</td><td>1,243.5</td><td>1,295.4</td><td>-51.9</td><td>-4.0%</td></tr><tr><td>Current maturities of total debt</td><td>215.1</td><td>—</td><td>215.1</td><td>N/A</td></tr><tr><td>Long-term debt</td><td>1,069.6</td><td>1,315.7</td><td>-246.1</td><td>-18.7%</td></tr><tr><td>Long-term debt of consolidated investment products</td><td>5,512.9</td><td>5,865.4</td><td>-352.5</td><td>-6.0%</td></tr></table>
Cash and cash equivalents Cash and cash equivalents decreased by $13.1 million from $740.5 million at December 31, 2010 to $727.4 million at December 31, 2011. See “Cash Flows” in the following section within this Management's Discussion and Analysis for additional discussion regarding the movements in cash flows during the periods. See Item 8, Financial Statements and Supplementary Data - Note 1, “Accounting Policies - Cash and Cash Equivalents,” regarding requirements to mandate the retention of liquid resources in certain jurisdictions. Unsettled fund receivables and payables Unsettled fund receivables decreased by $69.0 million from $513.4 million at December 31, 2010 to $444.4 million at December 31, 2011, due primarily to lower transaction activity between funds and investors in late December 2011 when compared to late December 2010 in our offshore funds. In the company's capacity as sponsor of UITs, the company records receivables from brokers, dealers, and clearing organizations for unsettled sell trades of securities and UITs in addition to receivables from customers for unsettled sell trades of UITs. In our U. K. and offshore activities, unsettled fund receivables are created by the normal settlement periods on transactions initiated by certain clients. The presentation of the unsettled fund receivables and substantially offsetting payables ($439.6 million at December 31, 2011 down from $504.8 million at December 31, 2010 ) at trade date reflects the legal relationship between the underlying investor and the company. Investments (current and non-current) As of December 31, 2011 we had $484.5 million in investments, of which $283.7 million were current investments and $200.8 million were non-current investments. Included in current investments are $63.5 million of seed money investments in affiliated funds used to seed funds as we launch new products, and $184.4 million of investments related to assets held for deferred compensation plans, which are also held primarily in affiliated funds. Seed investments decreased by $35.9 million during the year ended December 31, 2011, due primarily to market decreases and net disposals of seed money investments. Investments held to hedge deferred compensation awards increased by $18.9 million during the year, primarily due to additional investments in affiliated funds to hedge economically new employee plan awards. Included in non-current investments are $193.1 million in equity method investments in our Chinese joint ventures and in certain of the company’s private equity partnerships, real estate partnerships and other investments (December 31, 2010: $156.9 million). The increase of $36.2 million in equity method investments includes an increase of $32.1 million in partnership investments due to a $40.2 million co-investment in new European and Asian real estate funds, other capital calls and valuation improvements offset by distributions and capital returns during the period. The value of the joint venture investments and other non-controlling equity method investments increased by $4.1 million during the year as a result of current year earnings of $17.2 million, foreign exchange rate movements which added $2.8 million to the value and capital injections of $1.6 million, offset by annual dividends paid of $17.5 million to the company. Provisional Amounts Deferred tax assets and liabilities: The company remeasured certain deferred tax assets and liabilities based on the tax rates at which they are expected to reverse in the future, typically 21% under the 2017 Tax Act. However, the company is still analyzing certain aspects of the legislation and refining its calculations. Any updates or changes could affect the measurement of these balances or give rise to new deferred tax amounts. The provisional income tax beneffit recorded related to the remeasurement of the deferred tax balance was $130.7 million at December 31, 2017. Foreign tax effects: The one-time transition tax is based on the total post-1986 earnings and profits (E&P) that were previously deferred from U. S. income taxes. The company does not anticipate incurring an income tax liability and therefore no provision has been made. However, the company has not completed its analysis as to the existence of foreign subsidiaries it may be deemed to indirectly own (or partially own) through attribution or by way of its investment in various fund products which in turn may hold ownership in foreign subsidiaries where the transition tax may apply. Therefore, our determination as to the need for a net transition tax liability may change once this analysis has been completed. At December 31, 2017 the company had tax loss carryforwards accumulated in certain taxing jurisdictions in the aggregate of $413.3 million (2016: $243.8 million), approximately $35.2 million of which will expire between 2018 and 2020, $15.2 million of which will expire after 2020, with the remaining $362.9 million having an indefinite life. The increase in tax loss carryforwards from 2016 to 2017 of $169.5 million results from the acquisition of the European ETF business ($160.1 million) and the impact of foreign exchange translation on non-U. S. dollar denominated losses ($23.1 million) with the remainder of the movement due to additional losses not recognized ($15.8 million), offset with loss expiration and utilization ($30.0 million). A valuation allowance has been recorded against the deferred tax assets related to these losses where a history of losses in the respective tax jurisdiction makes it unlikely that the deferred tax asset will be realized. A reconciliation between the statutory rate and the effective tax rate on income from operations for the years ended December 31, 2017, 2016 and 2015 is as follows:
<table><tr><td></td><td>2017</td><td>2016</td><td>2015</td></tr><tr><td>Statutory Rate</td><td>35.0%</td><td>35.0%</td><td>35.0%</td></tr><tr><td>Foreign jurisdiction statutory income tax rates</td><td>-9.6%</td><td>-8.1%</td><td>-9.2%</td></tr><tr><td>State taxes, net of federal tax effect</td><td>2.2%</td><td>1.6%</td><td>1.6%</td></tr><tr><td>Impact of the 2017 Tax Act</td><td>-9.3%</td><td>—%</td><td>—%</td></tr><tr><td>Change in valuation allowance for unrecognized tax losses</td><td>0.4%</td><td>-0.4%</td><td>-0.1%</td></tr><tr><td>Share Based Compensation</td><td>-0.3%</td><td>—%</td><td>—%</td></tr><tr><td>Other</td><td>1.2%</td><td>0.3%</td><td>1.8%</td></tr><tr><td>(Gains)/losses attributable to noncontrolling interests</td><td>-0.8%</td><td>-0.4%</td><td>0.1%</td></tr><tr><td>Effective tax rate per Consolidated Statements of Income</td><td>18.8%</td><td>28.0%</td><td>29.2%</td></tr></table>
The company's subsidiaries operate in severalt taxing jurisdictions around the world, each with its own statutory income tax rate. As a result, the blended average statutory tax rate will vary from year to year depending on the mix of the profits and losses of the company's subsidiaries. The majority of our profits are earned in the U. S. and the U. K. The enacted U. K. statutory tax rate, for U. S. GAAP purposes, was 19% as of December 31, 2017. As of December 31, 2017, the U. S. federal statutory tax rate was 35%. The 2017 Tax Act enacted for U. S. GAAP purposes on December 22, 2017 reduces the U. S. federal statutory tax rate to 21% from January 1, 2018. Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis The Grand Gulf recovery variance is primarily due to increased recovery of higher costs resulting from the Grand Gulf uprate. The volume/weather variance is primarily due to the effects of more favorable weather on residential sales and an increase in industrial sales primarily due to growth in the refining segment. The fuel recovery variance is primarily due to: ? the deferral of increased capacity costs that will be recovered through fuel adjustment clauses; ? the expiration of the Evangeline gas contract on January 1, 2013; and ? an adjustment to deferred fuel costs recorded in the third quarter 2012 in accordance with a rate order from the PUCT issued in September 2012. See Note 2 to the financial statements for further discussion of this PUCT order issued in Entergy Texas's 2011 rate case. The MISO deferral variance is primarily due to the deferral in April 2013, as approved by the APSC, of costs incurred since March 2010 related to the transition and implementation of joining the MISO RTO. The decommissioning trusts variance is primarily due to lower regulatory credits resulting from higher realized income on decommissioning trust fund investments. There is no effect on net income as the credits are offset by interest and investment income. Entergy Wholesale Commodities Following is an analysis of the change in net revenue comparing 2013 to 2012.
<table><tr><td></td><td>Amount (In Millions)</td></tr><tr><td>2012 net revenue</td><td>$1,854</td></tr><tr><td>Mark-to-market</td><td>-58</td></tr><tr><td>Nuclear volume</td><td>-24</td></tr><tr><td>Nuclear fuel expenses</td><td>-20</td></tr><tr><td>Nuclear realized price changes</td><td>58</td></tr><tr><td>Other</td><td>-8</td></tr><tr><td>2013 net revenue</td><td>$1,802</td></tr></table>
As shown in the table above, net revenue for Entergy Wholesale Commodities decreased by approximately $52 million in 2013 primarily due to: ? the effect of rising forward power prices on electricity derivative instruments that are not designated as hedges, including additional financial power sales conducted in the fourth quarter 2013 to offset the planned exercise of in-the-money protective call options and to lock in margins. These additional sales did not qualify for hedge accounting treatment, and increases in forward prices after those sales were made accounted for the majority of the negative mark-to-market variance. It is expected that the underlying transactions will result in earnings in first quarter 2014 as these positions settle. See Note 16 to the financial statements for discussion of derivative instruments; ? the decrease in net revenue compared to prior year resulting from the exercise of resupply options provided for in purchase power agreements where Entergy Wholesale Commodities may elect to supply power from another source when the plant is not running. Amounts related to the exercise of resupply options are included in the GWh billed in the table below; and bonds, the actual average life of our investments can not be known at the time of the investment. We do know that the average life will not be less than the average life to next call and will not exceed the average life to maturity. Data for both of these average life measures is provided in the above chart. During 2005-2007, especially during 2005, there have been periods when yields available on acceptable-quality long-term non-callable securities did not meet our objectives. During such periods, we have invested in shorter-term securities. Some of these periods were characterized by relatively flat or inverted yield curves. During such periods, we did not have to give up much yield to invest in shorter-term securities, and we took on less credit risk than had we invested longer-term. Prior to 2007, we generally did not invest in securities with maturity dates more than 30 years after the acquisition date. During 2007, we invested some funds in hybrid securities (bonds, trust preferred securities and redeemable preferred stocks) with very long scheduled maturity dates, often exceeding 50 years. In virtually all cases, such hybrid securities are callable many years prior to the scheduled maturity date. As shown in the chart above, the effective annual yield and average life to maturity on funds invested during 2005 is significantly lower than that of funds invested during 2006 and 2007. This difference is reflective of the fact that, consistent with the investment environment and strategy described above, we invested relatively more funds in lower yielding, shorter-term investments in 2005 than we did in 2006- 2007. Due primarily to our investments in hybrid securities as described above, the average life of funds invested during 2007 (to both next call and maturity) is significantly higher than that of investments during 2005-2006. Given the long-term fixed-rate characteristics of our policy liabilities, we believe that investments with average lives in excess of 20 years are appropriate. New cash flow available to us for investment was affected by issuer calls as a result of the lowinterest environment experienced during the past three years. Issuers are more likely to call bonds when rates are low because they often can refinance them at a lower cost. Calls increase funds available for investment, but they can negatively affect portfolio yield if they cause us to replace higher-yielding bonds with those available at lower prevailing yields. Issuer calls were $848 million in 2007, $229 million in 2006, and $226 million in 2005. As long as we continue our current investment strategy and the average yield on new investments is less than the average yield of the portfolio and of assets disposed of, the average yield on fixed maturity assets in the portfolio should decline. Because of the significant investable cash flow generated from investments and operations, Torchmark will benefit if yield rates available on new investments increase. Portfolio Analysis. Because Torchmark has recently invested almost exclusively in fixed-maturity securities, the relative percentage of our assets invested in various types of investments varies from industry norms. |
10.2 | what is the total impairment charge recorded in the lat three years , in millions? | CITIZENS FINANCIAL GROUP, INC. MANAGEMENT’S DISCUSSION AND ANALYSIS 68 We operate our business through two business operating segments: Consumer Banking and Commercial Banking. Segment results are derived from our business-line profitability reporting systems by specifically attributing managed assets, liabilities, capital and their related revenues, provision for credit losses and expenses, including income tax expense. Residual assets, liabilities, capital and their related revenues, provision for credit losses and expenses are attributed to Other. For further information, see “—Results of Operations - 2017 compared with 2016 — Business Operating Segments. ” Consumer Banking
<table><tr><td></td><td colspan="2">As of and for the Year Ended December 31,</td><td></td><td></td></tr><tr><td>(dollars in millions)</td><td>2016</td><td>2015</td><td>Change</td><td>Percent</td></tr><tr><td>Net interest income</td><td>$2,443</td><td>$2,198</td><td>$245</td><td>11%</td></tr><tr><td>Noninterest income</td><td>883</td><td>910</td><td>-27</td><td>-3</td></tr><tr><td>Total revenue</td><td>3,326</td><td>3,108</td><td>218</td><td>7</td></tr><tr><td>Noninterest expense</td><td>2,547</td><td>2,456</td><td>91</td><td>4</td></tr><tr><td>Profit before provision for credit losses</td><td>779</td><td>652</td><td>127</td><td>19</td></tr><tr><td>Provision for credit losses</td><td>243</td><td>252</td><td>-9</td><td>-4</td></tr><tr><td>Income before income tax expense</td><td>536</td><td>400</td><td>136</td><td>34</td></tr><tr><td>Income tax expense</td><td>191</td><td>138</td><td>53</td><td>38</td></tr><tr><td>Net income</td><td>$345</td><td>$262</td><td>$83</td><td>32</td></tr><tr><td>Loans and loans held for sale (year-end)</td><td>$57,383</td><td>$53,344</td><td>$4,039</td><td>8</td></tr><tr><td>Average Balances:</td><td></td><td></td><td></td><td></td></tr><tr><td>Total assets</td><td>$56,388</td><td>$52,848</td><td>$3,540</td><td>7%</td></tr><tr><td>Loans and leases and loans held for sale</td><td>55,052</td><td>51,484</td><td>3,568</td><td>7</td></tr><tr><td>Deposits</td><td>72,003</td><td>69,748</td><td>2,255</td><td>3</td></tr><tr><td>Interest-earning assets</td><td>55,101</td><td>51,525</td><td>3,576</td><td>7</td></tr><tr><td>Key Performance Metrics:</td><td></td><td></td><td></td><td></td></tr><tr><td>Net interest margin</td><td>4.43%</td><td>4.27%</td><td>16bps</td><td>—</td></tr><tr><td>Efficiency ratio</td><td>76.57</td><td>79.02</td><td>-245 bps</td><td>—</td></tr><tr><td>Period-end loans to deposits ratio<sup>-1</sup></td><td>77.33</td><td>74.53</td><td>280bps</td><td>—</td></tr><tr><td>Average loans to average deposits ratio<sup>-1</sup></td><td>76.46</td><td>73.81</td><td>265bps</td><td>—</td></tr><tr><td>Return on average total tangible assets</td><td>0.61</td><td>0.50</td><td>11bps</td><td>—</td></tr><tr><td>Return on average tangible common equity<sup>-2</sup></td><td>6.68</td><td>5.53</td><td>115bps</td><td>—</td></tr></table>
(1) Ratios include loans and leases held for sale. (2) Business operating segments are allocated capital on a risk-adjusted basis considering economic and regulatory capital requirements. We approximate that regulatory capital is equivalent to a sustainable target level for CET1 capital and then allocate that approximation to the business operating segments based on economic capital. Consumer Banking net income of $345 million in 2016 increased $83 million, or 32%, from 2015, reflecting an increase in total revenue, partially offset by an increase in noninterest expense. Consumer Banking total revenue of $3.3 billion in 2016 increased $218 million from 2015, as net interest income increased driven by loan and deposit growth. Net interest income of $2.4 billion increased 11% from 2015, driven by the benefit of $3.6 billion average loan growth, reflecting growth in education, residential mortgage, auto and other retail loans as well as improved loan yields. Noninterest income decreased $27 million, or 3%, largely as growth in service charges and fees and mortgage banking fees were more than offset by the impact of a reclassification of card reward costs and lower trust and investment services fees. Noninterest expense of $2.5 billion in 2016 increased $91 million, or 4%, from $2.5 billion in 2015, driven by higher salaries and benefits, outside services expense, amortization of software and other operating expense, partially offset by the impact of a reclassification of card reward costs. Provision for credit losses of $243 million in 2016 decreased $9 million, or 4%, from $252 million in 2015, largely reflecting the benefit of lower real estate secured net charge-offs. consolidated 2005 results of operations was an estimated reduction of gross profit and a corresponding decrease to inventory, at cost, of $5.2 million. Store pre-opening costs Pre-opening costs related to new store openings and the construction periods are expensed as incurred. Property and equipment Property and equipment are recorded at cost. The Company provides for depreciation and amortization on a straight-line basis over the following estimated useful lives:
<table><tr><td>Land improvements</td><td>20</td></tr><tr><td>Buildings</td><td>39-40</td></tr><tr><td>Furniture, fixtures and equipment</td><td>3-10</td></tr></table>
Improvements of leased properties are amortized over the shorter of the life of the applicable lease term or the estimated useful life of the asset. Impairment of long-lived assets When indicators of impairment are present, the Company evaluates the carrying value of long-lived assets, other than goodwill, in relation to the operating performance and future cash flows or the appraised values of the underlying assets. In accordance with SFAS 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” the Company reviews for impairment stores open more than two years for which current cash flows from operations are negative. Impairment results when the carrying value of the assets exceeds the undiscounted future cash flows over the life of the lease. The Company’s estimate of undiscounted future cash flows over the lease term is based upon historical operations of the stores and estimates of future store profitability which encompasses many factors that are subject to variability and difficult to predict. If a long-lived asset is found to be impaired, the amount recognized for impairment is equal to the difference between the carrying value and the asset’s fair value. The fair value is estimated based primarily upon future cash flows (discounted at the Company’s credit adjusted risk-free rate) or other reasonable estimates of fair market value. Assets to be disposed of are adjusted to the fair value less the cost to sell if less than the book value. The Company recorded impairment charges, included in SG&A expense, of approximately $9.4 million in 2006, $0.6 million in 2005 and $0.2 million in 2004 to reduce the carrying value of certain of its stores’ assets as deemed necessary due to negative sales trends and cash flows at these locations. The majority of the 2006 charges were recorded pursuant to certain strategic initiatives discussed in Note 2. Other assets Other assets consist primarily of long-term investments, qualifying prepaid expenses, debt issuance costs which are amortized over the life of the related obligations, utility and security deposits, life insurance policies and goodwill. THE GOLDMAN SACHS GROUP, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements The table below presents information about the allowance for credit losses.
<table><tr><td></td><td colspan="2">Year Ended December 2018</td><td colspan="2">Year Ended December 2017</td></tr><tr><td><i>$ in millions</i></td><td>Loans Receivable</td><td>Lending Commitments</td><td>Loans Receivable</td><td>Lending Commitments</td></tr><tr><td colspan="4">Changes in the allowance for credit losses</td><td></td></tr><tr><td>Beginning balance</td><td>$ 803</td><td>$274</td><td>$ 509</td><td>$212</td></tr><tr><td>Net charge-offs</td><td>-337</td><td>–</td><td>-203</td><td>–</td></tr><tr><td>Provision</td><td>654</td><td>20</td><td>574</td><td>83</td></tr><tr><td>Other</td><td>-54</td><td>-8</td><td>-77</td><td>-21</td></tr><tr><td> Ending balance</td><td>$1,066</td><td>$286</td><td>$ 803</td><td>$274</td></tr><tr><td colspan="4">Allowance for losses by impairment methodology</td><td></td></tr><tr><td>Specific</td><td>$ 102</td><td>$ 3</td><td>$ 119</td><td>$ 14</td></tr><tr><td>Portfolio</td><td>848</td><td>283</td><td>518</td><td>260</td></tr><tr><td>PCI</td><td>116</td><td>–</td><td>166</td><td>–</td></tr><tr><td> Total</td><td>$1,066</td><td>$286</td><td>$ 803</td><td>$274</td></tr></table>
In the table above: ‰ Net charge-offs were primarily related to consumer loans and commercial real estate PCI loans for 2018 and primarily related to corporate loans for 2017. ‰ The provision for credit losses was primarily related to consumer loans and corporate loans for 2018 and primarily related to corporate loans and lending commitments, and commercial real estate loans for 2017. ‰ Other represents the reduction to the allowance related to loans and lending commitments transferred to held for sale. ‰ Portfolio level reserves were primarily related to corporate loans and lending commitments, specific loan-level reserves were substantially all related to corporate loans and reserves on PCI loans were related to real estate loans. ‰ Substantially all of the allowance for losses on lending commitments was related to corporate lending commitments. ‰ Allowance for loan losses as a percentage of total gross loans receivable was 1.3% as of December 2018 and 1.2% as of December 2017. ‰ Net charge-offs as a percentage of average total gross loans receivable were 0.5% for 2018 and 0.4% for 2017. Note 10. Collateralized Agreements and Financings Collateralized agreements are resale agreements and securities borrowed. Collateralized financings are repurchase agreements, securities loaned and other secured financings. The firm enters into these transactions in order to, among other things, facilitate client activities, invest excess cash, acquire securities to cover short positions and finance certain firm activities. Collateralized agreements and financings are presented on a net-by-counterparty basis when a legal right of setoff exists. Interest on collateralized agreements, which is included in interest income, and collateralized financings, which is included in interest expense, is recognized over the life of the transaction. See Note 23 for further information about interest income and interest expense. The table below presents the carrying value of resale and repurchase agreements and securities borrowed and loaned transactions.
<table><tr><td></td><td colspan="2">As of December</td></tr><tr><td><i>$ in millions</i></td><td> 2018</td><td>2017</td></tr><tr><td>Resale agreements</td><td> $139,258</td><td>$120,822</td></tr><tr><td>Securities borrowed</td><td> $135,285</td><td>$190,848</td></tr><tr><td>Repurchase agreements</td><td> $ 78,723</td><td>$ 84,718</td></tr><tr><td>Securities loaned</td><td> $ 11,808</td><td>$ 14,793</td></tr></table>
In the table above: ‰ Substantially all resale agreements and all repurchase agreements are carried at fair value under the fair value option. See Note 8 for further information about the valuation techniques and significant inputs used to determine fair value. ‰ Securities borrowed of $23.14 billion as of December 2018 and $78.19 billion as of December 2017, and securities loaned of $3.24 billion as of December 2018 and $5.36 billion as of December 2017 were at fair value. Resale and Repurchase Agreements A resale agreement is a transaction in which the firm purchases financial instruments from a seller, typically in exchange for cash, and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller at a stated price plus accrued interest at a future date. A repurchase agreement is a transaction in which the firm sells financial instruments to a buyer, typically in exchange for cash, and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date. Even though repurchase and resale agreements (including “repos- and reverses-to-maturity”) involve the legal transfer of ownership of financial instruments, they are accounted for as financing arrangements because they require the financial instruments to be repurchased or resold before or at the maturity of the agreement. The financial instruments purchased or sold in resale and repurchase agreements typically include U. S. government and agency, and investment-grade sovereign obligations. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations – CNA Financial – (Continued) expense reduction initiatives as compared with the same period in 2003. Partially offsetting these favorable impacts was $14.0 million of estimated underwriting assessments related to the 2004 Florida hurricanes. During 2004, additional bad debt provisions for insurance receivables of $150.0 million were recorded as compared to $242.0 million recorded in 2003. The substantial bad debt provisions for insurance receivables in 2004 and 2003 were primarily related to Professional Employer Organization (“PEO”) accounts. During 2002, Standard Lines ceased writing coverages for PEO businesses, with the last contracts expiring on June 30, 2003. In the third quarter of 2003, CNA performed a review of PEO accounts to estimate ultimate losses and the indicated recoveries under retrospective premium or high-deductible provisions of the insurance contracts. Based on the 2003 analysis of the credit standing of the individual PEO accounts and the amount of collateral held, CNA recorded an increase in the bad debt provision. In the third quarter of 2004, the review of PEO accounts was updated and the population of accounts reviewed was expanded to include Temporary Help accounts as well. Payroll audits performed since the last study identified that the exposure base for many accounts was higher than expected. In addition, recovery estimates were updated based on current credit information on the insured. Based on the updated study, CNA recorded an estimated bad debt provision of $95.0 million in the third quarter of 2004 for these accounts. In 2004, the expense ratio was adversely impacted by an additional $55.0 million bad debt provision for insurance receivables. The primary drivers of the provision were the completion of updated ultimate loss projections on all large account business where the insured is currently in bankruptcy and a comprehensive review of all billed balances that are past due. The dividend ratio decreased 2.0 points in 2004 as compared with 2003 due to favorable net prior year dividend development of $23.0 million in 2004, as compared to unfavorable net prior year dividend development of $46.0 million in 2003, primarily related to workers compensation products. The favorable 2004 dividend development was related to a review that was completed in 2004 which indicated dividends were lower than prior expectations based on decreased usage of dividend programs. Specialty Lines The following table summarizes the results of operations for Specialty Lines for the years ended December 31, 2005, 2004 and 2003. |
3,046 | What is the sum of value in the range of 400 and 1000 in 2011? (in million) | AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U. S. Acquisitions—During the year ended December 31, 2010, the Company acquired 548 towers through multiple acquisitions in the United States for an aggregate purchase price of $329.3 million and contingent consideration of approximately $4.6 million. The acquisition of these towers is consistent with the Company’s strategy to expand in selected geographic areas and have been accounted for as business combinations. The following table summarizes the preliminary allocation of the aggregate purchase consideration paid and the amounts of assets acquired and liabilities assumed based on the estimated fair value of the acquired assets and assumed liabilities at the date of acquisition (in thousands):
<table><tr><td></td><td>Purchase Price Allocation</td></tr><tr><td>Non-current assets</td><td>$442</td></tr><tr><td>Property and equipment</td><td>64,564</td></tr><tr><td>Intangible assets -1</td><td>260,898</td></tr><tr><td>Current liabilities</td><td>-360</td></tr><tr><td>Long-term liabilities</td><td>-7,802</td></tr><tr><td>Fair value of net assets acquired</td><td>$317,742</td></tr><tr><td>Goodwill -2</td><td>16,131</td></tr></table>
(1) Consists of customer relationships of approximately $205.4 million and network location intangibles of approximately $55.5 million. The customer relationships and network location intangibles are being amortized on a straight-line basis over a period of 20 years. (2) Goodwill is expected to be deductible for income tax purposes. The goodwill was allocated to the domestic rental and management segment. The allocation of the purchase price will be finalized upon completion of analyses of the fair value of the assets acquired and liabilities assumed. South Africa Acquisition—On November 4, 2010, the Company entered into a definitive agreement with Cell C (Pty) Limited to purchase up to approximately 1,400 existing towers, and up to 1,800 additional towers that either are under construction or will be constructed, for an aggregate purchase price of up to approximately $430 million. The Company anticipates closing the purchase of up to 1,400 existing towers during 2011, subject to customary closing conditions. Other Transactions Coltel Transaction—On September 3, 2010, the Company entered into a definitive agreement to purchase the exclusive use rights for towers in Colombia from Colombia Telecomunicaciones S. A. E. S. P. (“Coltel”) until 2023, when ownership of the towers will transfer to the Company at no additional cost. Pursuant to that agreement, the Company completed the purchase of exclusive use rights for 508 towers for an aggregate purchase price of $86.8 million during the year ended December 31, 2010. The Company expects to complete the purchase of the exclusive use rights for an additional 180 towers by the end of 2011, subject to customary closing conditions. The transaction has been accounted for as a capital lease, with the aggregated purchase price being allocated to property and equipment and non-current assets. Joint Venture with MTN Group—On December 6, 2010, the Company entered into a definitive agreement with MTN Group Limited (“MTN Group”) to establish a joint venture in Ghana (“TowerCo Ghana”). TowerCo Ghana, which will be managed by the Company, will be owned by a holding company of which a wholly owned American Tower subsidiary will hold a 51% share and a wholly owned MTN Group subsidiary (“MTN Ghana”) will hold a 49% share. The transaction involves the sale of up to 1,876 of MTN Ghana’s existing sites to D. R. HORTON, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) its homes constructed in these markets and of the warranty claims received in these markets as well as testing of specific homes. Through September 30, 2010, the Company has spent approximately $4.9 million to remediate these homes. While the Company will seek reimbursement for these remediation costs from various sources, it has not recorded a receivable for potential recoveries as of September 30, 2010. The Company is continuing its investigation to determine if there are additional homes with the Chinese Drywall in these markets, which if found, would likely require the Company to further increase its warranty reserve for this matter in the future. The remaining costs accrued to complete this remediation are based on the Company’s estimate of remaining repair costs. If the actual costs to remediate the homes differ from the estimated costs, the Company may revise its warranty estimate. As of September 30, 2010, the Company has been named as a defendant in several lawsuits in Louisiana and Florida pertaining to Chinese Drywall. As these actions are still in their early stages, the Company is unable to express an opinion as to the amount of damages, if any, beyond what has been reserved for repair as discussed above. Changes in the Company’s warranty liability during fiscal 2010 and 2009 were as follows:
<table><tr><td></td><td colspan="2">September 30,</td></tr><tr><td></td><td>2010</td><td>2009</td></tr><tr><td></td><td colspan="2">(In millions)</td></tr><tr><td>Warranty liability, beginning of year</td><td>$59.6</td><td>$83.4</td></tr><tr><td>Warranties issued</td><td>19.5</td><td>16.8</td></tr><tr><td>Changes in liability for pre-existing warranties</td><td>-5.0</td><td>-16.0</td></tr><tr><td>Settlements made</td><td>-27.9</td><td>-24.6</td></tr><tr><td>Warranty liability, end of year</td><td>$46.2</td><td>$59.6</td></tr></table>
Insurance and Legal Claims The Company has been named as defendant in various claims, complaints and other legal actions including construction defect claims on closed homes and other claims and lawsuits incurred in the ordinary course of business, including employment matters, personal injury claims, land development issues, contract disputes and claims related to its mortgage activities. The Company has established reserves for these contingencies, based on the expected costs of the claims. The Company’s estimates of such reserves are based on the facts and circumstances of individual pending claims and historical data and trends, including costs relative to revenues, home closings and product types, and include estimates of the costs of construction defect claims incurred but not yet reported. These reserve estimates are subject to ongoing revision as the circumstances of individual pending claims and historical data and trends change. Adjustments to estimated reserves are recorded in the accounting period in which the change in estimate occurs. The Company’s liabilities for these items were $571.3 million and $534.0 million at September 30, 2010 and 2009, respectively, and are included in homebuilding accrued expenses and other liabilities in the consolidated balance sheets. Related to the contingencies for construction defect claims and estimates of construction defect claims incurred but not yet reported, and other legal claims and lawsuits incurred in the ordinary course of business, the Company estimates and records insurance receivables for these matters under applicable insurance policies when recovery is probable. Additionally, the Company may have the ability to recover a portion of its legal expenses from its subcontractors when the Company has been named as an additional insured on their insurance policies. Estimates of the Company’s insurance receivables related to these matters totaled $251.5 million and $234.6 million at September 30, 2010 and 2009, respectively, and are included in homebuilding other assets in the consolidated balance sheets. Expenses related to these items were approximately $43.2 million, $58.3 million and $53.8 million in fiscal 2010, 2009 and 2008, respectively. Management believes that, while the outcome of such contingencies cannot be predicted with certainty, the liabilities arising from these matters will not have a material adverse effect on the Company’s consolidated The average price of our net sales orders in 2011 was $214,000, an increase of 3% from the $207,000 average in 2010. The largest percentage increases were in our Southwest and West regions and were primarily due to opening new communities and adjusting our product mix, with higher priced communities representing more of our sales. Our annual sales order cancellation rate was 27% in fiscal 2011, compared to 26% in fiscal 2010. These cancellation rates were above historical levels, reflecting the challenges in most of our homebuilding markets.
<table><tr><td></td><td colspan="9">Sales Order Backlog As of September 30,</td></tr><tr><td></td><td colspan="3">Homes in Backlog</td><td colspan="3">Value (In millions)</td><td colspan="3">Average Selling Price</td></tr><tr><td></td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td></tr><tr><td>East</td><td>606</td><td>472</td><td>28%</td><td>$147.6</td><td>$103.4</td><td>43%</td><td>$243,600</td><td>$219,100</td><td>11%</td></tr><tr><td>Midwest</td><td>288</td><td>247</td><td>17%</td><td>80.6</td><td>70.1</td><td>15%</td><td>279,900</td><td>283,800</td><td>-1%</td></tr><tr><td>Southeast</td><td>1,285</td><td>812</td><td>58%</td><td>246.9</td><td>162.5</td><td>52%</td><td>192,100</td><td>200,100</td><td>-4%</td></tr><tr><td>South Central</td><td>1,710</td><td>1,691</td><td>1%</td><td>309.5</td><td>297.3</td><td>4%</td><td>181,000</td><td>175,800</td><td>3%</td></tr><tr><td>Southwest</td><td>426</td><td>405</td><td>5%</td><td>76.6</td><td>71.9</td><td>7%</td><td>179,800</td><td>177,500</td><td>1%</td></tr><tr><td>West</td><td>539</td><td>501</td><td>8%</td><td>175.0</td><td>145.6</td><td>20%</td><td>324,700</td><td>290,600</td><td>12%</td></tr><tr><td></td><td>4,854</td><td>4,128</td><td>18%</td><td>$1,036.2</td><td>$850.8</td><td>22%</td><td>$213,500</td><td>$206,100</td><td>4%</td></tr></table>
Sales Order Backlog Our homes in backlog at September 30, 2011 increased 18% from the prior year, with significant increases in our East, Midwest and Southeast regions. The number of homes in backlog in these regions benefited from more active communities and improved third and fourth quarter sales as compared with the same periods of the prior year. Homes Closed and Home Sales Revenue
<table><tr><td></td><td colspan="9">Homes Closed and Home Sales Revenue Fiscal Year Ended September 30,</td></tr><tr><td></td><td colspan="3">Homes Closed</td><td colspan="3">Value (In millions)</td><td colspan="3">Average Selling Price</td></tr><tr><td></td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td><td>2011</td><td>2010</td><td>%Change</td></tr><tr><td>East</td><td>1,932</td><td>2,114</td><td>-9%</td><td>$438.4</td><td>$492.2</td><td>-11%</td><td>$226,900</td><td>$232,800</td><td>-3%</td></tr><tr><td>Midwest</td><td>964</td><td>1,187</td><td>-19%</td><td>261.5</td><td>330.9</td><td>-21%</td><td>271,300</td><td>278,800</td><td>-3%</td></tr><tr><td>Southeast</td><td>3,546</td><td>4,049</td><td>-12%</td><td>691.8</td><td>745.2</td><td>-7%</td><td>195,100</td><td>184,000</td><td>6%</td></tr><tr><td>South Central</td><td>6,150</td><td>8,046</td><td>-24%</td><td>1,080.0</td><td>1,378.8</td><td>-22%</td><td>175,600</td><td>171,400</td><td>2%</td></tr><tr><td>Southwest</td><td>1,263</td><td>1,872</td><td>-33%</td><td>234.8</td><td>329.7</td><td>-29%</td><td>185,900</td><td>176,100</td><td>6%</td></tr><tr><td>West</td><td>2,840</td><td>3,607</td><td>-21%</td><td>835.8</td><td>1,025.5</td><td>-18%</td><td>294,300</td><td>284,300</td><td>4%</td></tr><tr><td></td><td>16,695</td><td>20,875</td><td>-20%</td><td>$3,542.3</td><td>$4,302.3</td><td>-18%</td><td>$212,200</td><td>$206,100</td><td>3%</td></tr></table>
Home Sales Revenue Revenues from home sales decreased 18%, to $3,542.3 million (16,695 homes closed) in 2011 from $4,302.3 million (20,875 homes closed) in 2010. The average selling price of homes closed during 2011 was $212,200, up 3% from the $206,100 average in 2010 which reflected a change in product mix rather than broad price appreciation. During fiscal 2011, home sales revenues decreased in all of our market regions, resulting from decreases in the number of homes closed. The number of homes closed in fiscal 2011 decreased 20% due to decreases in all of our market regions. The federal homebuyer tax credit helped stimulate demand for new homes during fiscal 2010 and following its expiration we experienced a significant decline in demand for our homes that extended into fiscal 2011. D. R. HORTON, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 75 Effective August 1, 2017, the Board of Directors authorized the repurchase of up to $500 million of the Company’s debt securities effective through July 31, 2018. All of the $500 million authorization was remaining at September 30, 2017. Financial Services: The Company’s mortgage subsidiary, DHI Mortgage, has a mortgage repurchase facility that is accounted for as a secured financing. The mortgage repurchase facility provides financing and liquidity to DHI Mortgage by facilitating purchase transactions in which DHI Mortgage transfers eligible loans to the counterparties against the transfer of funds by the counterparties, thereby becoming purchased loans. DHI Mortgage then has the right and obligation to repurchase the purchased loans upon their sale to third-party purchasers in the secondary market or within specified time frames from 45 to 60 days in accordance with the terms of the mortgage repurchase facility. In February 2017, the mortgage repurchase facility was amended to increase its capacity to $600 million and extend its maturity date to February 23, 2018. The capacity of the facility increases, without requiring additional commitments, to $725 million for approximately 30 days at each quarter end and to $800 million for approximately 45 days at fiscal year end. The capacity can also be increased to $1.0 billion subject to the availability of additional commitments. As of September 30, 2017, $540.1 million of mortgage loans held for sale with a collateral value of $520.0 million were pledged under the mortgage repurchase facility. As a result of advance paydowns totaling $100.0 million, DHI Mortgage had an obligation of $420.0 million outstanding under the mortgage repurchase facility at September 30, 2017 at a 3.3% annual interest rate. The mortgage repurchase facility is not guaranteed by D. R. Horton, Inc. or any of the subsidiaries that guarantee the Company’s homebuilding debt. The facility contains financial covenants as to the mortgage subsidiary’s minimum required tangible net worth, its maximum allowable ratio of debt to tangible net worth and its minimum required liquidity. These covenants are measured and reported to the lenders monthly. At September 30, 2017, DHI Mortgage was in compliance with all of the conditions and covenants of the mortgage repurchase facility. In the past, DHI Mortgage has been able to renew or extend its mortgage credit facility at a sufficient capacity and on satisfactory terms prior to its maturity and obtain temporary additional commitments through amendments to the credit facility during periods of higher than normal volumes of mortgages held for sale. The liquidity of the Company’s financial services business depends upon its continued ability to renew and extend the mortgage repurchase facility or to obtain other additional financing in sufficient capacities. NOTE E – CAPITALIZED INTEREST The following table summarizes the Company’s interest costs incurred, capitalized and expensed during the years ended September 30, 2017, 2016 and 2015. |
37,433 | what's the total amount of Principal balance outstanding At December 31 of Home Equity 2008, and Beginning Stores of 2010 ? | The following table sets forth information concerning increases in the total number of our AAP stores during the past five years:
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Beginning Stores</td><td>3,369</td><td>3,264</td><td>3,243</td><td>3,153</td><td>2,995</td></tr><tr><td>New Stores<sup>-1</sup></td><td>95</td><td>110</td><td>75</td><td>109</td><td>175</td></tr><tr><td>Stores Closed</td><td>-4</td><td>-5</td><td>-54</td><td>-19</td><td>-17</td></tr><tr><td>Ending Stores</td><td>3,460</td><td>3,369</td><td>3,264</td><td>3,243</td><td>3,153</td></tr></table>
(1) Does not include stores that opened as relocations of previously existing stores within the same general market area or substantial renovations of stores.6WRUH7HFKQRORJ\ Our store-based information systems, which are designed to improve the efficiency of our operations and enhance customer service, are comprised of a proprietary POS system and electronic parts catalog, or EPC, system. Information maintained by our POS system is used to formulate pricing, marketing and merchandising strategies and to replenish inventory accurately and rapidly. Our POS system is fully integrated with our EPC system and enables our store Team Members to assist our customers in their parts selection and ordering based on the year, make, model and engine type of their vehicles. Our centrally-based EPC data management system enables us to reduce the time needed to (i) exchange data with our vendors and (ii) catalog and deliver updated, accurate parts information. Our EPC system also contains enhanced search engines and user-friendly navigation tools that enhance our Team Members' ability to look up any needed parts as well as additional products the customer needs to complete an automotive repair project. If a hard-to-find part or accessory is not available at one of our stores, the EPC system can determine whether the part is carried and in-stock through our HUB or PDQ? networks or can be ordered directly from one of our vendors. Available parts and accessories are then ordered electronically from another store, HUB, PDQ? or directly from the vendor with immediate confirmation of price, availability and estimated delivery time. We also support our store operations with additional proprietary systems and customer driven labor scheduling capabilities. Our store-level inventory management system provides real-time inventory tracking at the store level. With the store-level system, store Team Members can check the quantity of on-hand inventory for any SKU, adjust stock levels for select items for store specific events, automatically process returns and defective merchandise, designate SKUs for cycle counts and track merchandise transfers. Our stores use radio frequency hand-held devices to help ensure the accuracy of our inventory. Our standard operating procedure, or SOP, system is a web-based, electronic data management system that provides our Team Members with instant access to any of our standard operating procedures through a comprehensive on-line search function. All of these systems are tightly integrated and provide real-time, comprehensive information to store personnel, resulting in improved customer service levels, Team Member productivity and in-stock availability.6WRUH6XSSRUW&HQWHU 0HUFKDQGLVLQJ Purchasing for virtually all of the merchandise for our stores is handled by our merchandise teams located in three primary locations: ? Store support center in Roanoke, Virginia; ? Regional office in Minneapolis, Minnesota; and ? Global sourcing office in Taipei, Taiwan. Our Roanoke team is primarily responsible for the parts categories and our Minnesota team is primarily responsible for accessories, oil and chemicals. Our global sourcing team works closely with both teams. In Fiscal 2011, we purchased merchandise from approximately 500 vendors, with no single vendor accounting for more than 9% of purchases. Our purchasing strategy involves negotiating agreements with most of our vendors to purchase merchandise over a specified period of time along with other terms, including pricing, payment terms and volume. The merchandising team has developed strong vendor relationships in the industry and, in a collaborative effort with our vendor partners, utilizes a category management process where we manage the mix of our product offerings to meet customer demand. We believe this process, which develops a customer-focused business plan for each merchandise category, and our global sourcing operation are critical to improving comparable store sales, gross margin and inventory productivity. There were no new securitizations of home equity loans during 2009 and 2008. The following table summarizes selected information related to home equity and automobile loan securitizations at and for the year ended December 31, 2009 and 2008.
<table><tr><td></td><td colspan="3"> Home Equity</td><td colspan="3">Automobile</td></tr><tr><td>(Dollars in millions)</td><td colspan="2"> 2009</td><td>2008</td><td colspan="2"> 2009</td><td>2008</td></tr><tr><td> For the Year Ended December 31</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cash proceeds from new securitizations</td><td> $</td><td> –</td><td>$–</td><td> $</td><td> –</td><td>$741</td></tr><tr><td>Losses on securitizations<sup>-1</sup></td><td> </td><td> –</td><td>–</td><td> </td><td> –</td><td>-31</td></tr><tr><td>Collections reinvested in revolving period securitizations</td><td> </td><td> 177</td><td>235</td><td> </td><td> –</td><td>–</td></tr><tr><td>Repurchases of loans from trust<sup>-2</sup></td><td> </td><td> 268</td><td>128</td><td> </td><td> 298</td><td>184</td></tr><tr><td>Cash flows received on residual interests</td><td> </td><td> 35</td><td>27</td><td> </td><td> 52</td><td>–</td></tr><tr><td> At December 31</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Principal balance outstanding</td><td> </td><td> 46,282</td><td>34,169</td><td> </td><td> 2,656</td><td>5,385</td></tr><tr><td>Senior securities held<sup>-3, 4</sup></td><td> </td><td> 15</td><td>–</td><td> </td><td> 2,119</td><td>4,102</td></tr><tr><td>Subordinated securities held<sup>-5</sup></td><td> </td><td> 48</td><td>3</td><td> </td><td> 195</td><td>383</td></tr><tr><td>Residual interests held<sup>-6</sup></td><td> </td><td> 100</td><td>93</td><td> </td><td> 83</td><td>84</td></tr></table>
(1) Net of hedges (2) Repurchases of loans from the trust for home equity loans are typically a result of the Corporation’s representations and warranties, modifications or the exercise of an optional clean-up call. In addition, during 2009 and 2008, the Corporation paid $141 million and $34 million to indemnify the investor or insurer under the representations and warranties, and corporate guarantees. For further information regarding representations and warranties, and corporate guarantees, see the First Lien Mortgage-related Securitizations discussion. Repurchases of automobile loans during 2009 and 2008 were due to the exercise of an optional clean-up call. (3) As a holder of these securities, the Corporation receives scheduled interest and principal payments. During 2009, there were no other-than-temporary impairment losses recorded on those securities classified as AFS debt securities. (4) At December 31, 2009, all of the held senior securities issued by the home equity securitization trusts were valued using quoted market prices and classified as trading account assets. At December 31, 2009 and 2008, substantially all of the held senior securities issued by the automobile securitization trusts were valued using quoted market prices and classified as AFS debt securities. (5) At December 31, 2009 and 2008, substantially all of the held subordinated securities issued by the home equity securitization trusts were valued using model valuations and classified as AFS debt securities. At December 31, 2009 and 2008, substantially all of the held subordinated securities issued by the automobile securitization trusts were valued using quoted market prices and classified as AFS debt securities. (6) Residual interests include the residual asset, overcollateralization and cash reserve accounts, which are carried at fair value or amounts that approximate fair value. The residual interests were derived using model valuations and substantially all are classified in other assets. Under the terms of the Corporation’s home equity securitizations, advances are made to borrowers when they draw on their lines of credit and the Corporation is reimbursed for those advances from the cash flows in the securitization. During the revolving period of the securitization, this reimbursement normally occurs within a short period after the advance. However, when the securitization transaction has begun a rapid amortization period, reimbursement of the Corporation’s advance occurs only after other parties in the securitization have received all of the cash flows to which they are entitled. This has the effect of extending the time period for which the Corporation’s advances are outstanding. In particular, if loan losses requiring draws on monoline insurers’ policies, which protect the bondholders in the securitization, exceed a specified threshold or duration, the Corporation may not receive reimbursement for all of the funds advanced to borrowers, as the senior bondholders and the monoline insurers have priority for repayment. The Corporation evaluates all of its home equity securitizations for their potential to experience a rapid amortization event by estimating the amount and timing of future losses on the underlying loans, the excess spread available to cover such losses and by evaluating any estimated shortfalls in relation to contractually defined triggers. A maximum funding obligation attributable to rapid amortization cannot be calculated as a home equity borrower has the ability to pay down and redraw balances. At December 31, 2009 and 2008, home equity securitization transactions in rapid amortization had $14.1 billion and $13.1 billion of trust certificates outstanding. This amount is significantly greater than the amount the Corporation expects to fund. At December 31, 2009, an additional $1.1 billion of trust certificates outstanding pertain to home equity securitization transactions that are expected to enter rapid amortization during the next 24 months. The charges that will ultimately be recorded as a result of the rapid amortization events are dependent on the performance of the loans, the amount of subsequent draws, and the timing of related cash flows. At December 31, 2009 and 2008, the reserve for losses on expected future draw obligations on the home equity securitizations in or expected to be in rapid amortization was $178 million and $345 million. The Corporation has consumer MSRs from the sale or securitization of home equity loans. The Corporation recorded $128 million and $78 million of servicing fee income related to home equity securitizations during 2009 and 2008. For more information on MSRs, see Note 22 – Mortgage Servicing Rights. At December 31, 2009 and 2008, there were no recognized servicing assets or liabilities associated with any of the automobile securitization transactions. The Corporation recorded $43 million and $30 million in servicing fees related to automobile securitizations during 2009 and 2008. The Corporation provides financing to certain entities under assetbacked financing arrangements. These entities are controlled and consolidated by third parties. At December 31, 2009, the principal balance outstanding for these asset-backed financing arrangements was $10.4 billion, the maximum loss exposure was $6.8 billion, and on-balance sheet assets were $6.7 billion which are primarily recorded in loans and leases. The total cash flows for 2009 were $491 million and are primarily related to principal and interest payments received. NOTE 9 – Variable Interest Entities The Corporation utilizes SPEs in the ordinary course of business to support its own and its customers’ financing and investing needs. These SPEs are typically structured as VIEs and are thus subject to consolidation by the reporting enterprise that absorbs the majority of the economic risks and rewards of the VIE. To determine whether it must consolidate a VIE, the Corporation qualitatively analyzes the design of the VIE to identify the creators of variability within the VIE, including an assessment as to the nature of the risks that are created by the assets and other contractual arrangements of the VIE, and identifies whether it will absorb a majority of that variability. In addition, the Corporation uses VIEs such as trust preferred securities trusts in connection with its funding activities, as described in more detail in Note 13 – Long-term Debt. The Corporation also uses VIEs in the form of synthetic securitization vehicles to mitigate a portion of the credit risk on its residential mortgage loan portfolio as described in Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 54 LIQUIDITY AND CAPITAL RESOURCES Cash, cash equivalents and marketable investment securities. We consider all liquid investments purchased within 90 days of their maturity to be cash equivalents. See “Item 7A. – Quantitative and Qualitative Disclosures About Market Risk” for further discussion regarding our marketable investment securities. As of December 31, 2008, our cash, cash equivalents and current marketable investment securities totaled $559 million compared to $2.788 billion as of December 31, 2007, a decrease of $2.229 billion. Our principal source of liquidity during 2008 was cash generated by operating activities of $2.188 billion, approximately $750 million raised in issuing our 7 ?% Senior Notes due 2015 and the net sales of marketable and strategic investments of $166 million. Our primary uses of cash during 2008 were for the redemption of $1.5 billion of debt, the purchases of property and equipment of $1.130 billion, the acquisition of 700 MHz wireless spectrum for $712 million, the distribution of $1.532 billion to EchoStar related to the Spin-off, and the repurchase of 3.1 million shares of our common stock for $83 million. In addition, we reclassified $240 million of marketable investment securities on hand at December 31, 2007 to noncurrent assets during 2008 as recent events in the credit markets have reduced or eliminated current liquidity for these investments. The following discussion highlights our free cash flow and cash flow activities during the years ended December 31, 2008, 2007 and 2006. Free cash flow. We define free cash flow as “Net cash flows from operating activities” less “Purchases of property and equipment,” as shown on our Consolidated Statements of Cash Flows. We believe free cash flow is an important liquidity metric because it measures, during a given period, the amount of cash generated that is available to repay debt obligations, make investments, fund acquisitions and for certain other activities. Free cash flow is not a measure determined in accordance with GAAP and should not be considered a substitute for “Operating income,” “Net income,” “Net cash flows from operating activities” or any other measure determined in accordance with GAAP. Since free cash flow includes investments in operating assets, we believe this non-GAAP liquidity measure is useful in addition to the most directly comparable GAAP measure - “Net cash flows from operating activities. ” During the years ended December 31, 2008, 2007 and 2006, free cash flow was significantly impacted by changes in operating assets and liabilities as shown in the “Net cash flows from operating activities” section of our Consolidated Statements of Cash Flows included herein. Operating asset and liability balances can fluctuate significantly from period to period and there can be no assurance that free cash flow will not be negatively impacted by material changes in operating assets and liabilities in future periods, since these changes depend upon, among other things, management’s timing of payments and control of inventory levels, and cash receipts. In addition to fluctuations resulting from changes in operating assets and liabilities, free cash flow can vary significantly from period to period depending upon, among other things, subscriber growth, subscriber revenue, subscriber churn, subscriber acquisition costs including amounts capitalized under our equipment lease programs, operating efficiencies, increases or decreases in purchases of property and equipment and other factors. The following table reconciles free cash flow to “Net cash flows from operating activities. ”
<table><tr><td></td><td colspan="3"> For the Years Ended December 31,</td></tr><tr><td></td><td> 2008</td><td> 2007 (In thousands)</td><td> 2006</td></tr><tr><td>Free cash flow</td><td>$1,058,454</td><td>$1,172,198</td><td>$882,924</td></tr><tr><td>Add back:</td><td></td><td></td><td></td></tr><tr><td>Purchases of property and equipment</td><td>1,129,890</td><td>1,444,522</td><td>1,396,318</td></tr><tr><td>Net cash flows from operating activities</td><td>$2,188,344</td><td>$2,616,720</td><td>$2,279,242</td></tr></table>
The decline in free cash flow from 2007 to 2008 of $114 million resulted from a decrease in “Net cash flows from operating activities” of $429 million, or 16.4%, partially offset by a decrease in “Purchases of property and equipment” of $315 million, or 21.8%. The decrease in “Net cash flows from operating activities” was primarily attributable to a $351 million decrease in cash resulting from changes in operating assets and liabilities and a $59 million decrease in net income, adjusted to exclude non-cash changes in “Depreciation and amortization” expense and “Realized and Notes to Consolidated Financial Statements Note 16. Statutory Accounting Practices (Unaudited) CNA’s domestic insurance subsidiaries maintain their accounts in conformity with accounting practices prescribed or permitted by insurance regulatory authorities, which vary in certain respects from GAAP. In converting from statutory accounting principles to GAAP, typical adjustments include deferral of policy acquisition costs and the inclusion of net unrealized holding gains or losses in shareholders’ equity relating to certain fixed maturity securities. CNA’s insurance subsidiaries are domiciled in various jurisdictions. These subsidiaries prepare statutory financial statements in accordance with accounting practices prescribed or permitted by the respective jurisdictions’ insurance regulators. Prescribed statutory accounting practices are set forth in a variety of publications of the National Association of Insurance Commissioners (“NAIC”) as well as state laws, regulations and general administrative rules. CCC follows a permitted practice related to the statutory provision for reinsurance, or the uncollectible reinsurance reserve. This permitted practice allows CCC to record an additional uncollectible reinsurance reserve amount through a different financial statement line item than the prescribed statutory convention. This permitted practice had no effect on CCC’s statutory surplus at December 31, 2007 or 2006. CNA’s ability to pay dividends and other credit obligations is significantly dependent on receipt of dividends from its subsidiaries. The payment of dividends to CNA by its insurance subsidiaries without prior approval of the insurance department of each subsidiary’s domiciliary jurisdiction is limited by formula. Dividends in excess of these amounts are subject to prior approval by the respective state insurance departments. Dividends from CCC are subject to the insurance holding company laws of the State of Illinois, the domiciliary state of CCC. Under these laws, ordinary dividends, or dividends that do not require prior approval of the Illinois Department of Financial and Professional Regulation – Division of Insurance (the “Department”), may be paid only from earned surplus, which is calculated by removing unrealized gains from unassigned surplus. As of December 31, 2007, CCC is in a positive earned surplus position, enabling CCC to pay approximately $630 million of dividend payments during 2008 that would not be subject to the Department’s prior approval. The actual level of dividends paid in any year is determined after an assessment of available dividend capacity, holding company liquidity and cash needs as well as the impact the dividends will have on the statutory surplus of the applicable insurance company. CNA’s domestic insurance subsidiaries are subject to risk-based capital requirements. Risk-based capital is a method developed by the NAIC to determine the minimum amount of statutory capital appropriate for an insurance company to support its overall business operations in consideration of its size and risk profile. The formula for determining the amount of risk-based capital specifies various factors, weighted based on the perceived degree of risk, which are applied to certain financial balances and financial activity. The adequacy of a company’s actual capital is evaluated by a comparison to the risk-based capital results, as determined by the formula. Companies below minimum risk-based capital requirements are classified within certain levels, each of which requires specified corrective action. As of December 31, 2007 and 2006, all of CNA’s domestic insurance subsidiaries exceeded the minimum risk-based capital requirements. Combined statutory capital and surplus and net income, determined in accordance with accounting practices prescribed or permitted by insurance regulatory authorities for the property and casualty and the life insurance subsidiaries, were as follows: |
0.44581 | what was the percentage change in net sales from 2011 to 2012? | $43.3 million in 2011 compared to $34.1 million in 2010. The Retail segment represented 13% and 15% of the Company’s total net sales in 2011 and 2010, respectively. The Retail segment’s operating income was $4.7 billion, $3.2 billion, and $2.3 billion during 2012, 2011, and 2010 respectively. These year-over-year increases in Retail operating income were primarily attributable to higher overall net sales that resulted in significantly higher average revenue per store during the respective years. Gross Margin Gross margin for 2012, 2011 and 2010 are as follows (in millions, except gross margin percentages):
<table><tr><td></td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Net sales</td><td>$156,508</td><td>$108,249</td><td>$65,225</td></tr><tr><td>Cost of sales</td><td>87,846</td><td>64,431</td><td>39,541</td></tr><tr><td>Gross margin</td><td>$68,662</td><td>$43,818</td><td>$25,684</td></tr><tr><td>Gross margin percentage</td><td>43.9%</td><td>40.5%</td><td>39.4%</td></tr></table>
The gross margin percentage in 2012 was 43.9%, compared to 40.5% in 2011. This year-over-year increase in gross margin was largely driven by lower commodity and other product costs, a higher mix of iPhone sales, and improved leverage on fixed costs from higher net sales. The increase in gross margin was partially offset by the impact of a stronger U. S. dollar. The gross margin percentage during the first half of 2012 was 45.9% compared to 41.4% during the second half of 2012. The primary drivers of higher gross margin in the first half of 2012 compared to the second half are a higher mix of iPhone sales and improved leverage on fixed costs from higher net sales. Additionally, gross margin in the second half of 2012 was also affected by the introduction of new products with flat pricing that have higher cost structures and deliver greater value to customers, price reductions on certain existing products, higher transition costs associated with product launches, and continued strengthening of the U. S. dollar; partially offset by lower commodity costs. The gross margin percentage in 2011 was 40.5%, compared to 39.4% in 2010. This year-over-year increase in gross margin was largely driven by lower commodity and other product costs. The Company expects to experience decreases in its gross margin percentage in future periods, as compared to levels achieved during 2012, and the Company anticipates gross margin of about 36% during the first quarter of 2013. Expected future declines in gross margin are largely due to a higher mix of new and innovative products with flat or reduced pricing that have higher cost structures and deliver greater value to customers and anticipated component cost and other cost increases. Future strengthening of the U. S. dollar could further negatively impact gross margin. The foregoing statements regarding the Company’s expected gross margin percentage in future periods, including the first quarter of 2013, are forward-looking and could differ from actual results because of several factors including, but not limited to those set forth above in Part I, Item 1A of this Form 10-K under the heading “Risk Factors” and those described in this paragraph. In general, gross margins and margins on individual products will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions and potential increases in the cost of components, as well as potential increases in the costs of outside manufacturing services and a potential shift in the Company’s sales mix towards products with lower gross margins. In response to competitive pressures, the Company expects it will continue to take product pricing actions, which would adversely affect gross margins. Gross margins could also be affected by the Company’s ability to manage product quality and warranty costs effectively and to stimulate demand for certain of its products. Due to the Company’s significant international operations, financial results can be significantly affected in the short-term by fluctuations in exchange rates. PRUDENTIAL FINANCIAL, INC. Notes to Consolidated Financial Statements The Company’s liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Liabilities for guaranteed benefits with embedded derivative features are primarily in “other contract liabilities” in the table above. The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract. See Note 11 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts. Premium deficiency reserves included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses. Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration traditional, non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; long-term care; and for certain individual health policies. Unpaid claims and claim adjustment expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet dates related to group disability products. Unpaid claim liabilities that are discounted use interest rates ranging from 3.0% to 6.4%. Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows:
<table><tr><td></td><td>2015</td><td>2014</td></tr><tr><td></td><td colspan="2">(in millions)</td></tr><tr><td>Individual annuities</td><td>$37,384</td><td>$37,718</td></tr><tr><td>Group annuities</td><td>27,141</td><td>27,200</td></tr><tr><td>Guaranteed investment contracts and guaranteed interest accounts</td><td>14,122</td><td>14,428</td></tr><tr><td>Funding agreements</td><td>3,997</td><td>4,691</td></tr><tr><td>Interest-sensitive life contracts</td><td>32,502</td><td>30,406</td></tr><tr><td>Dividend accumulation and other</td><td>21,638</td><td>21,707</td></tr><tr><td>Total policyholders’ account balances</td><td>$136,784</td><td>$136,150</td></tr></table>
Policyholders’ account balances primarily represent an accumulation of account deposits plus credited interest less withdrawals, expense charges and mortality charges, if applicable. These policyholders’ account balances also include provisions for benefits under nonlife contingent payout annuities. Included in “Funding agreements” at December 31, 2015 and 2014 are $2,957 million and $2,705 million, respectively, related to the Company’s FANIP. Under this program, which has a maximum authorized amount of $15 billion, a Delaware statutory trust issues medium-term notes to investors that are secured by funding agreements issued to the trust by Prudential Insurance. The outstanding notes have fixed or floating interest rates that range from 0.5% to 2.6% and original maturities ranging from two to ten years. Included in the amounts at December 31, 2015 and 2014 is the medium-term note liability, which is carried at amortized cost, of $2,958 million and $2,705 million, respectively. For additional details on the FANIP, see Note 5. Also included in “Funding agreements” are collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”) of $1,001 million and $1,947 million, as of December 31, 2015 and 2014, respectively. These obligations, which are carried at amortized cost, have fixed or floating interest rates that range from 0.8% to 1.7% and original maturities ranging from four to seven years. For additional details on the FHLBNY program, see Note 14. Interest crediting rates range from 0% to 7.5% for interest-sensitive life contracts and from 0% to 12.5% for contracts other than interest-sensitive life. Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%.11. CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder. The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”). In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”). These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods. The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held-to-maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options. The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable. The Company also issues fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit. In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (no-lapse guarantee). Variable life and variable universal life contracts are offered with general and separate account options. Operating Results The following table sets forth the Individual Annuities segment’s operating results for the periods indicated.
<table><tr><td></td><td colspan="3">Year ended December 31,</td></tr><tr><td></td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td></td><td colspan="3">(in millions)</td></tr><tr><td>Operating results:</td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$4,695</td><td>$4,710</td><td>$4,465</td></tr><tr><td>Benefits and expenses</td><td>2,898</td><td>3,243</td><td>2,380</td></tr><tr><td>Adjusted operating income</td><td>1,797</td><td>1,467</td><td>2,085</td></tr><tr><td>Realized investment gains (losses), net, and related adjustments</td><td>1,588</td><td>521</td><td>-5,918</td></tr><tr><td>Related charges</td><td>-624</td><td>-137</td><td>1,716</td></tr><tr><td>Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures</td><td>$2,761</td><td>$1,851</td><td>$-2,117</td></tr></table>
Adjusted Operating Income 2015 to 2014 Annual Comparison. Adjusted operating income increased $330 million. Excluding the impacts of changes in the estimated profitability of the business, discussed below, adjusted operating income increased $39 million. The increase was driven by higher asset-based fee income due to growth in average variable annuity account values, net of a related increase in asset-based commissions, a decline in interest expense driven by lower debt, and a decline in amortization costs. Partially offsetting this net increase were costs for contract cancellations in connection with remediation of an error in an illustration contained in certain product marketing materials, higher operating expenses and a decline in net investment income driven by lower income on non-coupon investments. The impacts of changes in the estimated profitability of the business include adjustments to the amortization of DAC and other costs and to the reserves for the GMDB and GMIB features of our variable annuity products. These adjustments resulted in a net benefit of $162 million and a net charge of $129 million in 2015 and 2014, respectively. The $162 million net benefit in 2015 primarily reflected the net impact of equity market performance on contractholder accounts relative to our assumptions, as well as a net benefit resulting from our annual review and update of assumptions. The $129 million net charge in 2014 primarily reflected the impact of lower expected rates of return on fixed income investments within contractholder accounts and on future expected claims relative to our assumptions, which more than offset a net favorable impact from equity market performance. Partially offsetting this net charge was a net benefit resulting from the annual review and update of assumptions performed in that year.2014 to 2013 Annual Comparison. Adjusted operating income decreased $618 million. Excluding the impacts of changes in the estimated profitability of the business, discussed below, adjusted operating income increased $207 million. The increase was driven by higher asset-based fee income due to growth in average variable annuity account values, net of a related increase in asset-based commissions. Also contributing to the increase were lower amortization costs and reserve provisions for the GMDB and GMIB features of our variable annuity products. Adjustments to the amortization of DAC and other costs and to the reserves for the GMDB and GMIB features of our variable annuity products resulted in a net charge of $129 million and a net benefit of $696 million in 2014 and 2013, respectively. The $129 million net charge in 2014 primarily reflected the impact of lower expected rates of return on fixed income investments within contractholder accounts and on future expected claims relative to our assumptions, which more than offset a net favorable impact from equity market performance. Partially offsetting this net charge was a net benefit resulting from the annual review and update of assumptions performed in that year. The $696 million net benefit in 2013 included a $301 million net benefit resulting from the annual review and update of assumptions and other refinements performed in that year. The remaining net benefit reflected the impact of positive market performance on contractholder accounts relative to our assumptions. Revenues, Benefits and Expenses 2015 to 2014 Annual Comparison. Revenues, as shown in the table above under “—Operating Results,” decreased $15 million, primarily driven by a $27 million decrease in net investment income due to lower income on non-coupon investments, partially offset by a $19 million increase in policy charges and fee income due to growth in average variable annuity account values. Benefits and expenses, as shown in the table above under “—Operating Results,” decreased $345 million. Absent the $291 million net decrease related to the impacts of certain changes in our estimated profitability of the business discussed above, benefits and expenses decreased $54 million. Interest expense decreased $38 million driven by lower debt, and interest credited to policyholders’ account balances decreased $26 million driven by lower average account values in the general account. Partially offsetting these decreases was a $14 million increase in policyholders’ benefits driven by costs for contract cancellations, as discussed above.2014 to 2013 Annual Comparison. Revenues increased $245 million, primarily driven by a $311 million increase in policy charges and fee income, asset management and service fees and other income, due to growth in average variable annuity account values. Partially offsetting this increase was a $63 million decline in net investment income, driven by lower reinvestment rates and lower average account values in the general account due to surrenders of legacy general account products. Benefits and expenses increased $863 million. Absent the $825 million net increase related to the impacts of certain changes in our estimated profitability of the business discussed above, benefits and expenses increased $38 million. General and administrative expenses, net of capitalization, increased $111 million, driven by higher asset-based commissions and asset management costs due to account value The following table sets forth the income yield and investment income for each major investment category of our general account investments, excluding both the Closed Block division and the Japanese insurance operations’ portion of the general account which is presented separately below, for the periods indicated. The yields are based on net investment income as reported under U. S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are included in realized gains (losses).
<table><tr><td></td><td colspan="6">Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td></tr><tr><td></td><td colspan="6">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>4.67%</td><td>$5,686</td><td>4.69%</td><td>$5,461</td><td>4.65%</td><td>$5,306</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>3.79</td><td>688</td><td>3.96</td><td>730</td><td>3.99</td><td>741</td></tr><tr><td>Equity securities</td><td>6.07</td><td>197</td><td>6.49</td><td>191</td><td>7.30</td><td>174</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.62</td><td>1,338</td><td>4.96</td><td>1,271</td><td>5.27</td><td>1,145</td></tr><tr><td>Policy loans</td><td>5.52</td><td>250</td><td>5.66</td><td>253</td><td>5.45</td><td>228</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.25</td><td>38</td><td>0.21</td><td>22</td><td>0.23</td><td>26</td></tr><tr><td>Other investments</td><td>6.17</td><td>356</td><td>10.03</td><td>598</td><td>7.54</td><td>383</td></tr><tr><td>Gross investment income before investment expenses</td><td>4.33</td><td>8,553</td><td>4.63</td><td>8,526</td><td>4.52</td><td>8,003</td></tr><tr><td>Investment expenses</td><td>-0.15</td><td>-239</td><td>-0.15</td><td>-209</td><td>-0.12</td><td>-152</td></tr><tr><td>Investment income after investment expenses</td><td>4.18%</td><td>8,314</td><td>4.48%</td><td>8,317</td><td>4.40%</td><td>7,851</td></tr><tr><td>Investment results of other entities and operations-2</td><td></td><td>114</td><td></td><td>124</td><td></td><td>113</td></tr><tr><td>Total investment income</td><td></td><td>$8,428</td><td></td><td>$8,441</td><td></td><td>$7,964</td></tr></table>
(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation. (2) Includes investment income of our asset management operations and derivative operations, as described below under “—Invested Assets of Other Entities and Operations. ” The decrease in net investment income yield attributable to our general account investments, excluding both the Closed Block division and the Japanese operations’ portfolio, for 2015, compared to 2014, was primarily the result of lower income from non-coupon investments and lower fixed income reinvestment rates. The increase in net investment income yield attributable to our general account investments, excluding both the Closed Block division and the Japanese operations’ portfolio, for 2014, compared to 2013, was primarily the result of higher income from non-coupon investments and from reinvestments within certain asset portfolios primarily into higher yielding securities, primarily during the second half of 2013. The following table sets forth the income yield and investment income for each major investment category of our Japanese insurance operations’ general account for the periods indicated. The yields are based on net investment income as reported under U. S. GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are included in realized gains and losses.
<table><tr><td></td><td colspan="6">Year Ended December 31,</td></tr><tr><td></td><td colspan="2">2015</td><td colspan="2">2014</td><td colspan="2">2013</td></tr><tr><td></td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td><td>Yield-1</td><td>Amount</td></tr><tr><td></td><td colspan="6">($ in millions)</td></tr><tr><td>Fixed maturities</td><td>3.23%</td><td>$3,190</td><td>3.06%</td><td>$3,301</td><td>2.91%</td><td>$3,269</td></tr><tr><td>Trading account assets supporting insurance liabilities</td><td>1.66</td><td>32</td><td>1.80</td><td>35</td><td>1.81</td><td>34</td></tr><tr><td>Equity securities</td><td>4.77</td><td>69</td><td>5.06</td><td>84</td><td>4.69</td><td>82</td></tr><tr><td>Commercial mortgage and other loans</td><td>4.45</td><td>390</td><td>4.20</td><td>294</td><td>4.21</td><td>258</td></tr><tr><td>Policy loans</td><td>3.93</td><td>84</td><td>3.93</td><td>88</td><td>3.70</td><td>88</td></tr><tr><td>Short-term investments and cash equivalents</td><td>0.32</td><td>5</td><td>0.24</td><td>4</td><td>0.19</td><td>4</td></tr><tr><td>Other investments</td><td>5.32</td><td>133</td><td>6.67</td><td>155</td><td>6.12</td><td>170</td></tr><tr><td>Gross investment income before investment expenses</td><td>3.35</td><td>3,903</td><td>3.18</td><td>3,961</td><td>3.02</td><td>3,905</td></tr><tr><td>Investment expenses</td><td>-0.13</td><td>-155</td><td>-0.12</td><td>-153</td><td>-0.12</td><td>-156</td></tr><tr><td>Total investment income</td><td>3.22%</td><td>$3,748</td><td>3.06%</td><td>$3,808</td><td>2.90%</td><td>$3,749</td></tr></table>
(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity. Yields for fixed maturities are based on amortized cost. Yields for equity securities are based on cost. Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity. Yields exclude investment income on assets other than those included in invested assets. Prior period yields are presented on a basis consistent with the current period presentation. The increase in net investment income yield on the Japanese insurance portfolio for 2015, compared to 2014, was primarily attributable to a higher allocation into U. S. dollar-denominated investments. |
2.43178 | what is the ratio of securities remaining to securities issued? | American International Group, Inc. and Subsidiaries Survival Ratios-Asbestos and Environmental The following table presents AlG's survival ratios for asbestos and environmental claims for year-end 2006,2005 and 2004. The survival ratio is derived by dividing the year end carried loss reserve by the average payments for the three most recent calendar years for these claims. Therefore, the survival ratio is a simplistic measure estimating the number of years it would be before the current ending loss reser ves for these claims would be paid off using recent year average payments. The December 31, 2006 survival ratio is lower than the ratio at December 31,2005because the more recent periods included in the rolling average reflect higher claims payments. Many factors, such as aggressive settlement procedures, mix of business and level of coverage provided, have a significant effect on the amount of asbestos and environmental reserves and payments and the resultant survivalratio. Thus, caution should be exercised in attempting to deter- mine reserve adequacy for these claims based simply on this survival ratio. AlG's survival ratios for asbestos and environmental claims, separately and combined were based upon a three-year average payment. These ratios for the years ended December 31,2006,2005 and 2004 were as follows:
<table><tr><td></td><td>Gross</td><td>Net</td></tr><tr><td> 2006</td><td></td><td></td></tr><tr><td>Survival ratios:</td><td></td><td></td></tr><tr><td>Asbestos</td><td> 11.7</td><td> 12.9</td></tr><tr><td>Environmental</td><td> 5.3</td><td> 4.5</td></tr><tr><td>Combined</td><td> 10.3</td><td> 10.3</td></tr><tr><td>2005</td><td></td><td></td></tr><tr><td>Survival ratios:</td><td></td><td></td></tr><tr><td>Asbestos</td><td>15.9</td><td>19.8</td></tr><tr><td>Environmental</td><td>6.9</td><td>6.2</td></tr><tr><td>Combined</td><td>13.0</td><td>14.2</td></tr><tr><td>2004</td><td></td><td></td></tr><tr><td>Survival ratios:</td><td></td><td></td></tr><tr><td>Asbestos</td><td>10.7</td><td>13.5</td></tr><tr><td>Environmental</td><td>6.5</td><td>6.8</td></tr><tr><td>Combined</td><td>9.1</td><td>10.5</td></tr></table>
Life Insurance & Retirement Services Operations AIG's Life Insurance & Retirement Services subsidiaries offer a wide range of insurance and retirement savings products both domestically and abroad. Domestically, AlG's Life Insurance & Retirement Services operations offer a broad range of protection products, such as life insurance and group life and health products, including disability income products and payout annuities, which include single premium immediate annuities, structured settlements and termi- nal funding annuities. Home service operations include an array of life insurance, accident and health and annuity products soldprimarily through career agents. In addition, home service in- cludes a small block of runoff property and casualty coverage. Retirement services include group retirement products, individual fixed and variable annuities sold through banks, broker-dealers and exclusive sales representatives, and annuity runoff opera- tions, which include previously acquired"closed blocks"and other fixed and variable annuities largely sold through distribution relationships that have been discontinued. Overseas, AlG's Life Insurance & Retirement Services opera- tions include insurance and investment-oriented products such as whole and term life, investment linked, universal life and endo- ments, personal accident and health products, group products including pension, life and health, and fixed and variable annuities. AlG's Life Insurance & Retirement Ser vices subsidiaries reporttheir operations through the following major internal reporting units and business units: Foreign Life Insurance & Retirement Services Japan and Other* ·ALICO ·AlG Star Life ·AIG Edison Life Asia·AIA ·Nan Shan ·AlRCO ·Philamlife Domestic Life Insurance ·AlG American General ·USLIFE ·AGLA Domestic Retirement Services ·VALIC ·AlG Annuity ·AlG SunAmerica *Japan and Other consists of all operations in Japan and the operations of ALICO and its subsidi aries worldwide. American International Group, Inc. and Subsidiaries 15. Employee Benefits Continued (i) Components of net periodic benefit cost and other amounts recognized in other comprehensive income: The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in other comprehensive income with respect to the defined benefit pension plans and other postretirement benefit plans for the year ended December 31, 2006 (no amounts were recognized in other comprehensive income for the years ended 2005 and 2004):
<table><tr><td></td><td colspan="3">Pensions</td><td colspan="3">Postretirement</td></tr><tr><td><i>(in millions)</i></td><td>Non-U.S. Plans</td><td>U.S. Plans</td><td>Total</td><td>Non-U.S. Plans</td><td>U.S. Plans</td><td>Total</td></tr><tr><td> 2006</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Components of net periodic benefit cost:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>$78</td><td>$130</td><td>$208</td><td>$4</td><td>$6</td><td>$10</td></tr><tr><td>Interest cost</td><td>36</td><td>169</td><td>205</td><td>2</td><td>11</td><td>13</td></tr><tr><td>Expected return on assets</td><td>-28</td><td>-201</td><td>-229</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Amortization of prior service cost</td><td>-9</td><td>-3</td><td>-12</td><td>—</td><td>-6</td><td>-6</td></tr><tr><td>Amortization of transitional obligation</td><td>1</td><td>—</td><td>1</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Recognition of net actuarial (gains)/losses</td><td>16</td><td>75</td><td>91</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>1</td><td>6</td><td>7</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net periodic benefit cost</td><td>$95</td><td>$176</td><td>$271</td><td>$6</td><td>$11</td><td>$17</td></tr><tr><td>Total recognized in other comprehensive income</td><td>$38</td><td>$24</td><td>$62</td><td>$—</td><td>$—</td><td>$—</td></tr><tr><td>Total recognized in net periodic benefit cost and other comprehensive income</td><td>$133</td><td>$200</td><td>$333</td><td>$6</td><td>$11</td><td>$17</td></tr><tr><td>2005</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Components of net periodic benefit cost:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>$71</td><td>$111</td><td>$182</td><td>$4</td><td>$5</td><td>$9</td></tr><tr><td>Interest cost</td><td>32</td><td>153</td><td>185</td><td>2</td><td>11</td><td>13</td></tr><tr><td>Expected return on assets</td><td>-21</td><td>-180</td><td>-201</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Amortization of prior service cost</td><td>-10</td><td>-3</td><td>-13</td><td>—</td><td>-6</td><td>-6</td></tr><tr><td>Amortization of transitional obligation</td><td>1</td><td>—</td><td>1</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Recognition of net actuarial (gains)/losses</td><td>21</td><td>55</td><td>76</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Other</td><td>7</td><td>1</td><td>8</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net periodic benefit cost</td><td>$101</td><td>$137</td><td>$238</td><td>$6</td><td>$10</td><td>$16</td></tr><tr><td>2004</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Components of net periodic benefit cost:</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Service cost</td><td>$59</td><td>$101</td><td>$160</td><td>$3</td><td>$6</td><td>$9</td></tr><tr><td>Interest cost</td><td>33</td><td>147</td><td>180</td><td>2</td><td>14</td><td>16</td></tr><tr><td>Expected return on assets</td><td>-22</td><td>-170</td><td>-192</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Amortization of prior service cost</td><td>-8</td><td>—</td><td>-8</td><td>—</td><td>-7</td><td>-7</td></tr><tr><td>Amortization of transitional obligation</td><td>2</td><td>—</td><td>2</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Recognition of net actuarial (gains)/losses</td><td>15</td><td>53</td><td>68</td><td>11</td><td>2</td><td>13</td></tr><tr><td>Other*</td><td>-24</td><td>—</td><td>-24</td><td>3</td><td>—</td><td>3</td></tr><tr><td>Net periodic benefit cost</td><td>$55</td><td>$131</td><td>$186</td><td>$19</td><td>$15</td><td>$34</td></tr></table>
* The reduction resulted from transferring to the Japanese government certain Japanese plan obligations approximating $50 million reduced by approximately $26 million loss incurred with respect to the settlement of those obligations. For the U. S. plans, the estimated net loss, prior service credit and transition obligation for the defined benefit pension plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $37 million, $3 million and $0 million, respectively. For the non-U. S. plans, the estimated net loss, prior service credit and transition obligation for the defined benefit pension plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $11 million, $10 million and $1 million, respectively. The estimated net loss, prior service credit and transition obligation for the other defined benefit postretirement plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year will be less than $5 million in the aggregate. PART?III 59 ITEM?10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE For the information required by this Item?10 with respect to our Executive Officers, see Part?I, Item 1. of this report. For the other information required by this Item?10, see “Election Of Directors,” “Nominees for Election to the Board of Directors,” “Corporate Governance” and “Section?16(a) Beneficial Ownership Reporting Compliance,” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference. The Proxy Statement for our 2019 Annual Meeting will be filed within 120?days after the end of the fiscal year covered by this Annual Report on Form 10-K. ITEM?11. EXECUTIVE COMPENSATION For the information required by this Item?11, see “Compensation Discussion and Analysis,” “Compensation Committee Report,” and “Executive Compensation” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference. ITEM?12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS For the information required by this Item?12 with respect to beneficial ownership of our common stock, see “Security Ownership of Certain Beneficial Owners and Management” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference. The following table sets forth certain information as of December?31, 2018 regarding our equity plans :
<table><tr><td>Plan Category</td><td>Number of Securitiesto be Issued UponExercise ofOutstanding Options, Warrants and Rights<sub>-1</sub> (A)(B)</td><td>Weighted-AverageExercise Price ofOutstanding Options, Warrants and Rights</td><td>Number of SecuritiesRemaining Available forFuture Issuance UnderEquity CompensationPlans (ExcludingSecurities Reflected in Column (A)) (C)</td></tr><tr><td>Equity compensation plans approved by security holders</td><td>1,471,449</td><td>$136.62</td><td>3,578,241</td></tr></table>
(1) The number of securities in column (A) include 22,290 shares of common stock underlying performance stock units if maximum performance levels are achieved; the actual number of shares, if any, to be issued with respect to the performance stock units will be based on performance with respect to specified financial and relative stock price measures. ITEM?13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE For the information required by this Item?13, see “Certain Transactions” and “Corporate Governance” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference. ITEM?14. PRINCIPAL ACCOUNTING FEES AND SERVICES For the information required by this Item?14, see “Audit and Non-Audit Fees” and “Audit Committee Pre-Approval Procedures” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference. |
9,545 | What was the total amount of the Income from continuing operations in the years where Income taxes is greater than 1000? (in million) | Citigroup’s repurchases are primarily from Government Sponsored Entities. The specific representations and warranties made by the Company depend on the nature of the transaction and the requirements of the buyer. Market conditions and credit-ratings agency requirements may also affect representations and warranties and the other provisions the Company may agree to in loan sales. In the event of a breach of the representations and warranties, the Company may be required to either repurchase the mortgage loans (generally at unpaid principal balance plus accrued interest) with the identified defects or indemnify (“make-whole”) the investor or insurer. The Company has recorded a repurchase reserve that is included in Other liabilities in the Consolidated Balance Sheet. In the case of a repurchase, the Company will bear any subsequent credit loss on the mortgage loans. The Company’s representations and warranties are generally not subject to stated limits in amount or time of coverage. However, contractual liability arises only when the representations and warranties are breached and generally only when a loss results from the breach. In the case of a repurchase, the loan is typically considered a creditimpaired loan and accounted for under SOP 03-3, “Accounting for Certain Loans and Debt Securities, Acquired in a Transfer” (now incorporated into ASC 310-30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality). These repurchases have not had a material impact on nonperforming loan statistics, because credit-impaired purchased SOP 03-3 loans are not included in nonaccrual loans. The Company estimates its exposure to losses from its obligation to repurchase previously sold loans based on the probability of repurchase or make-whole and an estimated loss given repurchase or make-whole. This estimate is calculated separately by sales vintage (i. e. , the year the loans were sold) based on a combination of historical trends and forecasted repurchases and losses considering the: (1) trends in requests by investors for loan documentation packages to be reviewed; (2) trends in recent repurchases and make-wholes; (3) historical percentage of claims made as a percentage of loan documentation package requests; (4) success rate in appealing claims; (5) inventory of unresolved claims; and (6) estimated loss given repurchase or make-whole, including the loss of principal, accrued interest, and foreclosure costs. The Company does not change its estimation methodology by counterparty, but the historical experience and trends are considered when evaluating the overall reserve. The request for loan documentation packages is an early indicator of a potential claim. During 2009, loan documentation package requests and the level of outstanding claims increased. In addition, our loss severity estimates increased during 2009 due to the impact of macroeconomic factors and recent experience. These factors contributed to a $493 million change in estimate for this reserve in 2009. As indicated above, the repurchase reserve is calculated by sales vintage. The majority of the repurchases in 2009 were from the 2006 and 2007 sales vintages, which also represent the vintages with the largest lossgiven-repurchase. An insignificant percentage of 2009 repurchases were from vintages prior to 2006, and this is expected to decrease, because those vintages are later in the credit cycle. Although early in the credit cycle, the Company has experienced improved repurchase and loss-given-repurchase statistics from the 2008 and 2009 vintages. In the case of a repurchase of a credit-impaired SOP 03-3 loan (now incorporated into ASC 310-30), the difference between the loan’s fair value and unpaid principal balance at the time of the repurchase is recorded as a utilization of the repurchase reserve. Payments to make the investor whole are also treated as utilizations and charged directly against the reserve. The provision for estimated probable losses arising from loan sales is recorded as an adjustment to the gain on sale, which is included in Other revenue in the Consolidated Statement of Income. A liability for representations and warranties is estimated when the Company sells loans and is updated quarterly. Any subsequent adjustment to the provision is recorded in Other revenue in the Consolidated Statement of Income. The activity in the repurchase reserve for the years ended December 31, 2009 and 2008 is as follows:
<table><tr><td>In millions of dollars</td><td>2009</td><td>2008</td></tr><tr><td>Balance, beginning of the year</td><td>$75</td><td>$2</td></tr><tr><td>Additions for new sales</td><td>33</td><td>23</td></tr><tr><td>Change in estimate</td><td>493</td><td>59</td></tr><tr><td>Utilizations</td><td>-119</td><td>-9</td></tr><tr><td>Balance, end of the year</td><td>$482</td><td>$75</td></tr></table>
Goodwill Goodwill represents an acquired company’s acquisition cost over the fair value of net tangible and intangible assets acquired. Goodwill is subject to annual impairment tests, whereby Goodwill is allocated to the Company’s reporting units and an impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value. Furthermore, on any business dispositions, Goodwill is allocated to the business disposed of based on the ratio of the fair value of the business disposed of to the fair value of the reporting unit. Intangible Assets Intangible assets—including core deposit intangibles, present value of future profits, purchased credit card relationships, other customer relationships, and other intangible assets, but excluding MSRs—are amortized over their estimated useful lives. Intangible assets deemed to have indefinite useful lives, primarily certain asset management contracts and trade names, are not amortized and are subject to annual impairment tests. An impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value. For other Intangible assets subject to amortization, an impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the Intangible asset. Other Assets and Other Liabilities Other assets include, among other items, loans held-for-sale, deferred tax assets, equity-method investments, interest and fees receivable, premises and equipment, end-user derivatives in a net receivable position, repossessed assets, and other receivables. This table does not include: ? certain venture capital investments made by some of the Company’s private equity subsidiaries, as the Company accounts for these investments in accordance with the Investment Company Audit Guide; ? certain limited partnerships where the Company is the general partner and the limited partners have the right to replace the general partner or liquidate the funds; ? certain investment funds for which the Company provides investment management services and personal estate trusts for which the Company provides administrative, trustee and/or investment management services; ? VIEs structured by third parties where the Company holds securities in inventory. These investments are made on arm’s-length terms; and ? transferred assets to a VIE where the transfer did not qualify as a sale and where the Company did not have any other involvement that is deemed to be a variable interest with the VIE. These transfers are accounted for as secured borrowings by the Company. The asset balances for consolidated VIEs represent the carrying amounts of the assets consolidated by the Company. The carrying amount may represent the amortized cost or the current fair value of the assets depending on the legal form of the asset (e. g. , security or loan) and the Company’s standard accounting policies for the asset type and line of business. he asset balances for unconsolidated VIEs where the Company has significant involvement represent the most current information available to the Company. In most cases, the asset balances represent an amortized cost basis without regard to impairments in fair value, unless fair value information is readily available to the Company. For VIEs that obtain asset exposures synthetically through derivative instruments (for example, synthetic CDOs), the table includes the full original notional amount of the derivative as an asset. The maximum funded exposure represents the balance sheet carrying amount of the Company’s investment in the VIE. It reflects the initial amount of cash invested in the VIE plus any accrued interest and is adjusted for any impairments in value recognized in earnings and any cash principal payments received. The maximum exposure of unfunded positions represents the remaining undrawn committed amount, including liquidity and credit facilities provided by the Company, or the notional amount of a derivative instrument considered to be a variable interest, adjusted for any declines in fair value recognized in earnings. In certain transactions, the Company has entered into derivative instruments or other arrangements that are not considered variable interests in the VIE (e. g. , interest rate swaps, crosscurrency swaps, or where the Company is the purchaser of credit protection under a credit default swap or total return swap where the Company pays the total return on certain assets to the SPE). Receivables under such arrangements are not included in the maximum exposure amounts. Funding Commitments for Significant Unconsolidated VIEs— Liquidity Facilities and Loan Commitments The following table presents the notional amount of liquidity facilities and loan commitments that are classified as funding commitments in the SPE table as of December 31, 2009:
<table><tr><td>In millions of dollars</td><td>Liquidity Facilities</td><td>LoanCommitments</td></tr><tr><td>Citicorp</td><td></td><td></td></tr><tr><td>Citi-administered asset-backed commercial paper conduits (ABCP)</td><td>$20,486</td><td>$1,718</td></tr><tr><td>Third-party commercial paper conduits</td><td>353</td><td>—</td></tr><tr><td>Asset-based financing</td><td>—</td><td>549</td></tr><tr><td>Municipal securities tender option bond trusts (TOBs)</td><td>6,304</td><td>—</td></tr><tr><td>Municipal investments</td><td>—</td><td>18</td></tr><tr><td>Other</td><td>10</td><td>23</td></tr><tr><td>Total Citicorp</td><td>$27,153</td><td>$2,308</td></tr><tr><td>Citi Holdings</td><td></td><td></td></tr><tr><td>Citi-administered asset-backed commercial paper conduits (ABCP)</td><td>$11,978</td><td>$1,682</td></tr><tr><td>Third-party commercial paper conduits</td><td>252</td><td>—</td></tr><tr><td>Collateralized loan obligations (CLOs)</td><td>—</td><td>19</td></tr><tr><td>Asset-based financing</td><td>—</td><td>1,311</td></tr><tr><td>Municipal investments</td><td>—</td><td>386</td></tr><tr><td>Investment Funds</td><td>—</td><td>93</td></tr><tr><td>Other</td><td>—</td><td>257</td></tr><tr><td>Total CitiHoldings</td><td>$12,230</td><td>$3,748</td></tr><tr><td>Total Citigroup funding commitments</td><td>$39,383</td><td>$6,056</td></tr></table>
TRANSACTION SERVICES Transaction Services is composed of Treasury and Trade Solutions (TTS) and Securities and Fund Services (SFS). TTS provides comprehensive cash management and trade finance for corporations, financial institutions and public sector entities worldwide. SFS provides custody and funds services to investors such as insurance companies and mutual funds, clearing services to intermediaries such as broker-dealers, and depository and agency/trust services to multinational corporations and governments globally. Revenue is generated from net interest revenue on deposits in TTS and SFS, as well as trade loans and from fees for transaction processing and fees on assets under custody in SFS.
<table><tr><td>In millions of dollars</td><td>2009</td><td>2008</td><td>2007</td><td>% Change 2009 vs. 2008</td><td>% Change 2008 vs. 2007</td></tr><tr><td>Net interest revenue</td><td>$5,651</td><td>$5,485</td><td>$4,254</td><td>3%</td><td>29%</td></tr><tr><td>Non-interest revenue</td><td>4,138</td><td>4,461</td><td>3,844</td><td>-7</td><td>16</td></tr><tr><td>Total revenues, net of interest expense</td><td>$9,789</td><td>$9,946</td><td>$8,098</td><td>-2%</td><td>23%</td></tr><tr><td>Total operating expenses</td><td>4,515</td><td>5,156</td><td>4,634</td><td>-12</td><td>11</td></tr><tr><td>Provisions for credit losses and for benefits and claims</td><td>7</td><td>35</td><td>-30</td><td>-80</td><td>NM</td></tr><tr><td>Income before taxes and noncontrolling interests</td><td>$5,267</td><td>$4,755</td><td>$3,494</td><td>11%</td><td>36%</td></tr><tr><td>Income taxes</td><td>1,531</td><td>1,402</td><td>1,038</td><td>9</td><td>35</td></tr><tr><td>Income from continuing operations</td><td>3,736</td><td>3,353</td><td>2,456</td><td>11</td><td>37</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>13</td><td>31</td><td>20</td><td>-58</td><td>55</td></tr><tr><td>Net income</td><td>$3,723</td><td>$3,322</td><td>$2,436</td><td>12%</td><td>36%</td></tr><tr><td>Average assets(in billions of dollars)</td><td>$60</td><td>$71</td><td>$69</td><td>-15%</td><td>3%</td></tr><tr><td>Return on assets</td><td>6.21%</td><td>4.68%</td><td>3.53%</td><td></td><td></td></tr><tr><td>Revenues by region</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$2,526</td><td>$2,161</td><td>$1,646</td><td>17%</td><td>31%</td></tr><tr><td>EMEA</td><td>3,389</td><td>3,677</td><td>2,999</td><td>-8</td><td>23</td></tr><tr><td>Latin America</td><td>1,373</td><td>1,439</td><td>1,199</td><td>-5</td><td>20</td></tr><tr><td>Asia</td><td>2,501</td><td>2,669</td><td>2,254</td><td>-6</td><td>18</td></tr><tr><td>Total revenues</td><td>$9,789</td><td>$9,946</td><td>$8,098</td><td>-2%</td><td>23%</td></tr><tr><td>Income from continuing operations by region</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td>$615</td><td>$323</td><td>$209</td><td>90%</td><td>55%</td></tr><tr><td>EMEA</td><td>1,287</td><td>1,246</td><td>816</td><td>3</td><td>53</td></tr><tr><td>Latin America</td><td>604</td><td>588</td><td>463</td><td>3</td><td>27</td></tr><tr><td>Asia</td><td>1,230</td><td>1,196</td><td>968</td><td>3</td><td>24</td></tr><tr><td>Total net income from continuing operations</td><td>$3,736</td><td>$3,353</td><td>$2,456</td><td>11%</td><td>37%</td></tr><tr><td>Key indicators(in billions of dollars)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Average deposits and other customer liability balances</td><td>$303</td><td>$280</td><td>$246</td><td>8%</td><td>14%</td></tr><tr><td>EOP assets under custody(in trillions of dollars)</td><td>12.1</td><td>11.0</td><td>13.1</td><td>10</td><td>-16</td></tr></table>
2009 vs. 2008 Revenues, net of interest expense declined 2% compared to 2008 as strong growth in balances was more than offset by lower spreads driven by low interest rates globally. Average deposits and other customer liability balances grew 8%, driven by strong growth in all regions. Treasury and Trade Solutions revenues grew 7% as a result of strong growth in balances and higher trade revenues. Securities and Funds Services revenues declined 18%, attributable to reductions in asset valuations and volumes. Operating expenses declined 12%, mainly as a result of headcount reductions and successful execution of reengineering initiatives. Cost of credit declined 80%, which was primarily attributable to overall portfolio management. Net income increased 12%, leading to a record net income, with growth across all regions reflecting benefits of continued re-engineering and expense management efforts.2008 vs. 2007 Revenues, net of interest expense grew 23% driven by new business and implementations, growth in customer liability balances, increased transaction volumes and the impact of acquisitions. Average deposits and other customer liability balances grew 14% driven by success of new business growth and implementations. Treasury and Trade Solutions revenues grew 26% as a result of strong liability and fee growth as well as increased client penetration. Securities and Funds Services revenues grew 17% as a result of increased assets under custody, volumes and liability balances.2010 Outlook Transaction Services business performance will continue to be impacted in 2010 by levels of interest rates, economic activity, volatility in global capital markets, foreign exchange and market valuations globally. Levels of client activity and client cash and security flows are key factors dependent on macroeconomic conditions. Transaction Services intends to continue to invest in technology to support its global network, as well as investments to build out its investor services suite of products aimed at large, underpenetrated markets for middle and back office outsourcing among a range of investors. These and similar investments could lead to increasing operating expenses. BROKERAGE AND ASSET MANAGEMENT Brokerage and Asset Management (BAM), which constituted approximately 6% of Citi Holdings by assets as of December 31, 2009, consists of Citi’s global retail brokerage and asset management businesses. This segment was substantially affected and reduced in size in 2009 due to the divestitures of Smith Barney (to the Morgan Stanley Smith Barney joint venture (MSSB JV)) and Nikko Cordial Securities. At December 31, 2009, BAM had approximately $35 billion of assets, which included $26 billion of assets from the 49% interest in the MSSB JV ($13 billion investment and $13 billion in loans associated with the clients of the MSSB JV) and $9 billion of assets from a diverse set of asset management and insurance businesses of which approximately half will be transferred into the LATAM RCB during the first quarter of 2010, as discussed under “Citi Holdings” above. Morgan Stanley has options to purchase Citi’s remaining stake in the MSSB JV over three years starting in 2012. The 2009 results include an $11.1 billion gain ($6.7 billion after-tax) on the sale of Smith Barney. |
0.16628 | What's the growth rate of Payments due by period 2019 for long-term debt obligations? | DISH NETWORK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued F-28 This transaction was accounted for as a business combination using purchase price accounting. The allocation of the purchase consideration is in the table below.
<table><tr><td></td><td>Purchase Price Allocation (In thousands)</td></tr><tr><td>Cash</td><td>$107,061</td></tr><tr><td>Current assets</td><td>153,258</td></tr><tr><td>Property and equipment</td><td>28,663</td></tr><tr><td>Acquisition intangibles</td><td>17,826</td></tr><tr><td>Other noncurrent assets</td><td>12,856</td></tr><tr><td>Current liabilities</td><td>-86,080</td></tr><tr><td>Total purchase price</td><td>$233,584</td></tr></table>
The pro forma revenue and earnings associated with the Blockbuster Acquisition are not included in this filing. Due to the material ongoing modifications of the business, management has determined that insufficient information exists to accurately develop meaningful historical pro forma financial information. Moreover, the historical operations of Blockbuster materially changed during the periods preceding the acquisition as a result of Blockbuster Inc. ’s bankruptcy proceedings, and any historical pro forma information would not prove useful in assessing our post acquisition earnings and cash flows. The cost of goods sold on a unit basis for Blockbuster in the current period was lower-than-historical costs. The carrying values in the current period of the rental library and merchandise inventories (“Blockbuster Inventory”) were reduced to their estimated fair value due to the application of purchase accounting. This impact on cost of goods sold on a unit basis will diminish in the future as we purchase new Blockbuster Inventory.10. Spectrum Investments TerreStar Transaction Gamma Acquisition L. L. C. (“Gamma”), a wholly-owned subsidiary of DISH Network, entered into the TerreStar Transaction on June 14, 2011. On July 7, 2011, the U. S. Bankruptcy Court for the Southern District of New York approved the asset purchase agreement with TerreStar and we subsequently paid $1.345 billion of the cash purchase price. DISH Network is a party to the asset purchase agreement solely with respect to certain guaranty obligations. We have paid all but $30 million of the purchase price for the TerreStar Transaction, which will be paid upon closing of the TerreStar Transaction, or upon certain other conditions being met under the asset purchase agreement. Consummation of the acquisition contemplated in the asset purchase agreement is subject to, among other things, approval by the FCC. On February 7, 2012, the Canadian federal Department of Industry (“Industry Canada”) approved the transfer of the Canadian spectrum licenses held by TerreStar to us. If the remaining required approvals are not obtained, subject to certain exceptions, we have the right to require and direct the sale of some or all of the TerreStar assets to a third party and we would be entitled to the proceeds from such a sale. These proceeds could, however, be substantially less than amounts we have paid in the TerreStar Transaction. Additionally, Gamma is responsible for providing certain working capital and certain administrative expenses of TerreStar and certain of its subsidiaries after December 31, 2011. We expect that the TerreStar Transaction will be accounted for as a business combination using purchase price accounting. We also expect to allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques, including the market approach, income approach and/or cost approach. We expect the purchase price of the TerreStar assets to be allocated to, among other things, spectrum and satellites. DISH NETWORK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued F-41 During December 2009, we paid a dividend in cash of $2.00 per share on our outstanding Class A and Class B common stock to shareholders of record on November 20, 2009. In light of such dividend, during February 2010, the exercise price of 20.6 million stock options, affecting approximately 700 employees, was reduced by $2.00 per share (the “2009 Stock Option Adjustment”). Except as noted below, all information discussed below reflects the 2009 Stock Option Adjustment. On January 1, 2008, we completed the distribution of our technology and set-top box business and certain infrastructure assets (the “Spin-off”) into a separate publicly-traded company, EchoStar Corporation (“EchoStar”). DISH Network and EchoStar operate as separate publicly-traded companies, and neither entity has any ownership interest in the other. However, a substantial majority of the voting power of the shares of both companies is owned beneficially by Charles W. Ergen, our Chairman, or by certain trusts established by Mr. Ergen for the benefit of his family. In connection with the Spin-off, as permitted by our existing stock incentive plans and consistent with the Spin-off exchange ratio, each DISH Network stock option was converted into two stock options as follows: x an adjusted DISH Network stock option for the same number of shares that were exercisable under the original DISH Network stock option, with an exercise price equal to the exercise price of the original DISH Network stock option multiplied by 0.831219. x a new EchoStar stock option for one-fifth of the number of shares that were exercisable under the original DISH Network stock option, with an exercise price equal to the exercise price of the original DISH Network stock option multiplied by 0.843907. Similarly, each holder of DISH Network restricted stock units retained his or her DISH Network restricted stock units and received one EchoStar restricted stock unit for every five DISH Network restricted stock units that they held. Consequently, the fair value of the DISH Network stock award and the new EchoStar stock award immediately following the Spin-off was equivalent to the fair value of such stock award immediately prior to the Spin-off. As of December 31, 2011, the following stock awards were outstanding:
<table><tr><td> </td><td colspan="4"> As of December 31, 2011</td></tr><tr><td> </td><td colspan="2"> DISH Network Awards</td><td colspan="2"> EchoStar Awards</td></tr><tr><td> Stock Awards Outstanding</td><td> Stock Options</td><td> Restricted Stock Units</td><td> Stock Options</td><td> Restricted Stock Units</td></tr><tr><td>Held by DISH Network employees</td><td>18,630,441</td><td>1,189,709</td><td>762,094</td><td>54,286</td></tr><tr><td>Held by EchoStar employees</td><td>2,705,718</td><td>94,999</td><td>N/A</td><td>N/A</td></tr><tr><td>Total</td><td>21,336,159</td><td>1,284,708</td><td>762,094</td><td>54,286</td></tr></table>
We are responsible for fulfilling all stock awards related to DISH Network common stock and EchoStar is responsible for fulfilling all stock awards related to EchoStar common stock, regardless of whether such stock awards are held by our or EchoStar’s employees. Notwithstanding the foregoing, our stock-based compensation expense, resulting from stock awards outstanding at the Spin-off date, is based on the stock awards held by our employees regardless of whether such stock awards were issued by DISH Network or EchoStar. Accordingly, stock-based compensation that we expense with respect to EchoStar stock awards is included in “Additional paid-in capital” on our Consolidated Balance Sheets. Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued 62 62 Earnings before interest, taxes, depreciation and amortization. EBITDA was $2.956 billion during the year ended December 31, 2010, an increase of $644 million or 27.9% compared to the same period in 2009. The following table reconciles EBITDA to the accompanying financial statements.
<table><tr><td> </td><td colspan="2">For the Years Ended December 31,</td></tr><tr><td> </td><td>2010</td><td>2009</td></tr><tr><td> </td><td colspan="2">(In thousands)</td></tr><tr><td>EBITDA</td><td>$2,955,786</td><td>$2,311,398</td></tr><tr><td>Interest expense, net</td><td>-429,619</td><td>-358,391</td></tr><tr><td>Income tax (provision) benefit, net</td><td>-557,473</td><td>-377,429</td></tr><tr><td>Depreciation and amortization</td><td>-983,965</td><td>-940,033</td></tr><tr><td>Net income (loss) attributable to DISH Network</td><td>$984,729</td><td>$635,545</td></tr></table>
EBITDA is not a measure determined in accordance with GAAP, and should not be considered a substitute for operating income, net income or any other measure determined in accordance with GAAP. EBITDA is used as a measurement of operating efficiency and overall financial performance and we believe it to be a helpful measure for those evaluating companies in the pay-TV industry. Conceptually, EBITDA measures the amount of income generated each period that could be used to service debt, pay taxes and fund capital expenditures. EBITDA should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Income tax (provision) benefit, net. Our income tax provision was $557 million during the year ended December 31, 2010, an increase of $180 million compared to the same period in 2009. The increase in the provision was primarily related to the increase in “Income (loss) before income taxes. ” Net income (loss) attributable to DISH Network. “Net income (loss) attributable to DISH Network” was $985 million during the year ended December 31, 2010, an increase of $349 million compared to $636 million for the same period in 2009. The increase was primarily attributable to the changes in revenue and expenses discussed above. LIQUIDITY AND CAPITAL RESOURCES Cash, Cash Equivalents and Current Marketable Investment Securities We consider all liquid investments purchased within 90 days of their maturity to be cash equivalents. See “Item 7A. – Quantitative and Qualitative Disclosures About Market Risk” for further discussion regarding our marketable investment securities. As of December 31, 2011, our cash, cash equivalents and current marketable investment securities totaled $2.041 billion compared to $2.940 billion as of December 31, 2010, a decrease of $899 million. This decrease in cash, cash equivalents and current marketable investment securities was primarily related to our investment in DBSD North America of $1.139 billion, the TerreStar Transaction of $1.345 billion, repurchases and redemptions of our 6 3/8% Senior Notes due 2011 totaling $1.0 billion, the $893 million dividend paid in cash on our Class A and Class B common stock, capital expenditures of $779 million, the Blockbuster Acquisition of $127 million, net of $107 million cash received, and the Sprint Settlement Agreement net payment of approximately $114 million, which were partially offset by cash generated from operations of $2.574 billion and the net proceeds of $1.973 billion related to the issuance of our 6 3/4% Senior Notes due 2021. We have investments in various debt and equity instruments including corporate bonds, corporate equity securities, government bonds and variable rate demand notes (“VRDNs”). VRDNs are long-term floating rate municipal bonds with embedded put options that allow the bondholder to sell the security at par plus accrued interest. All of the put options are secured by a pledged liquidity source. Our VRDN portfolio is comprised of investments in many municipalities, which are backed by financial institutions or other highly rated companies that serve as the pledged liquidity source. While they are classified as marketable investment securities, the put option allows VRDNs to be liquidated generally on a same day or on a five business day settlement basis. As of December 31, 2011 and 2010, we held VRDNs, within our current marketable investment securities portfolio, with fair values of $161 million and $1.334 billion, respectively. Obligations and Future Capital Requirements Contractual Obligations and Off-Balance Sheet Arrangements As of December 31, 2015, future maturities of our long-term debt, capital lease and contractual obligations are summarized as follows:
<table><tr><td></td><td colspan="7">Payments due by period</td></tr><tr><td></td><td>Total</td><td>2016</td><td>2017</td><td>2018</td><td>2019</td><td>2020</td><td>Thereafter</td></tr><tr><td></td><td colspan="7">(In thousands)</td></tr><tr><td>Long-term debt obligations</td><td>$13,630,996</td><td>$1,503,151</td><td>$903,170</td><td>$1,203,235</td><td>$1,403,305</td><td>$1,103,379</td><td>$7,514,756</td></tr><tr><td>Capital lease obligations</td><td>166,492</td><td>30,849</td><td>32,994</td><td>36,175</td><td>19,503</td><td>19,137</td><td>27,834</td></tr><tr><td>Interest expense on long-term debt and capital lease obligations</td><td>4,206,125</td><td>772,289</td><td>716,328</td><td>646,445</td><td>618,716</td><td>479,170</td><td>973,177</td></tr><tr><td>Satellite-related obligations</td><td>1,960,083</td><td>411,734</td><td>336,526</td><td>327,197</td><td>301,102</td><td>241,371</td><td>342,153</td></tr><tr><td>Operating lease obligations</td><td>178,918</td><td>52,305</td><td>32,960</td><td>22,563</td><td>15,623</td><td>10,040</td><td>45,427</td></tr><tr><td>Purchase obligations</td><td>2,325,567</td><td>1,768,934</td><td>248,443</td><td>165,584</td><td>115,814</td><td>11,892</td><td>14,900</td></tr><tr><td>Total</td><td>$22,468,181</td><td>$4,539,262</td><td>$2,270,421</td><td>$2,401,199</td><td>$2,474,063</td><td>$1,864,989</td><td>$8,918,247</td></tr></table>
In certain circumstances the dates on which we are obligated to make these payments could be delayed. These amounts will increase to the extent that we procure launch and/or in-orbit insurance on our satellites or contract for the construction, launch or lease of additional satellites. The table above does not include $336 million of liabilities associated with unrecognized tax benefits that were accrued, as discussed in Note 11 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K, and are included on our Consolidated Balance Sheets as of December 31, 2015. We do not expect any portion of this amount to be paid or settled within the next twelve months. Other than the “Guarantees” disclosed in Note 15 in the Notes to our Consolidated Financial Statements in this Annual Report on Form 10-K, we generally do not engage in off-balance sheet financing activities. Satellite Insurance We generally do not carry commercial launch or in-orbit insurance on any of the satellites that we use, other than certain satellites leased from third parties. We generally do not use commercial insurance to mitigate the potential financial impact of launch or in-orbit failures because we believe that the cost of insurance premiums is uneconomical relative to the risk of such failures. In light of current favorable market conditions, during January 2016, we procured commercial launch and in-orbit insurance (for a period of one year following launch) for the EchoStar XVIII satellite, which is expected to launch during the second quarter 2016. We lease substantially all of our satellite capacity from third parties, including the vast majority of our transponder capacity from EchoStar, and we do not carry commercial insurance on any of the satellites that we lease from them. While we generally have had in-orbit satellite capacity sufficient to transmit our existing channels and some backup capacity to recover the transmission of certain critical programming, our backup capacity is limited. In the event of a failure or loss of any of our satellites, we may need to acquire or lease additional satellite capacity or relocate one of our other satellites and use it as a replacement for the failed or lost satellite. Purchase Obligations Our 2016 purchase obligations primarily consist of binding purchase orders for receiver systems and related equipment, broadband equipment, digital broadcast operations, transmission costs, engineering services, and other products and services related to the operation of our Pay-TV services and broadband service. Our purchase obligations also include certain fixed contractual commitments to purchase programming content. Our purchase obligations can fluctuate significantly from period to period due to, among other things, management’s timing of payments and inventory purchases, and can materially impact our future operating asset and liability balances, and our future working capital requirements. |
3.6 | for the derivative contracts , assuming an average contract life of 10 years , what would annual exposure be in us$ billion at december 31 , 2005 on derivative receivables? | Management’s discussion and analysis JPMorgan Chase & Co The following table summarizes the aggregate notional amounts and the reported derivative receivables (i. e. , the MTM or fair value of the derivative contracts after taking into account the effects of legally enforceable master netting agreements) at each of the dates indicated: Notional amounts and derivative receivables marked to market (“MTM”)
<table><tr><td>As of December 31,</td><td colspan="2">Notional amounts<sup>(a)</sup></td><td colspan="2">Derivative receivables MTM</td></tr><tr><td>(in billions)</td><td> 2005</td><td>2004</td><td>2005</td><td>2004</td></tr><tr><td>Interest rate</td><td>$38,493</td><td>$37,022</td><td>$30</td><td>$46</td></tr><tr><td>Foreign exchange</td><td>2,136</td><td>1,886</td><td>3</td><td>8</td></tr><tr><td>Equity</td><td>458</td><td>434</td><td>6</td><td>6</td></tr><tr><td>Credit derivatives</td><td>2,241</td><td>1,071</td><td>4</td><td>3</td></tr><tr><td>Commodity</td><td>265</td><td>101</td><td>7</td><td>3</td></tr><tr><td>Total</td><td>$43,593</td><td>$40,514</td><td>50</td><td>66</td></tr><tr><td>Collateral held againstderivative receivables</td><td> NA</td><td>NA</td><td>-6</td><td>-9</td></tr><tr><td>Exposure net of collateral</td><td> NA</td><td>NA</td><td>$44(b)</td><td>$57(c)</td></tr></table>
(a) The notional amounts represent the gross sum of long and short third-party notional derivative contracts, excluding written options and foreign exchange spot contracts, which significantly exceed the possible credit losses that could arise from such transactions. For most derivative transactions, the notional principal amount does not change hands; it is used simply as a reference to calculate payments. (b) The Firm held $33 billion of collateral against derivative receivables as of December 31, 2005, consisting of $27 billion in net cash received under credit support annexes to legally enforceable master netting agreements, and $6 billion of other liquid securities collateral. The benefit of the $27 billion is reflected within the $50 billion of derivative receivables MTM. Excluded from the $33 billion of collateral is $10 billion of collateral delivered by clients at the initiation of transactions; this collateral secures exposure that could arise in the derivatives portfolio should the MTM of the client’s transactions move in the Firm’s favor. Also excluded are credit enhancements in the form of letters of credit and surety receivables. (c) The Firm held $41 billion of collateral against derivative receivables as of December 31, 2004, consisting of $32 billion in net cash received under credit support annexes to legally enforceable master netting agreements, and $9 billion of other liquid securities collateral. The benefit of the $32 billion is reflected within the $66 billion of derivative receivables MTM. Excluded from the $41 billion of collateral is $10 billion of collateral delivered by clients at the initiation of transactions; this collateral secures exposure that could arise in the derivatives portfolio should the MTM of the client’s transactions move in the Firm’s favor. Also excluded are credit enhancements in the form of letters of credit and surety receivables. The MTM of derivative receivables contracts represents the cost to replace the contracts at current market rates should the counterparty default. When JPMorgan Chase has more than one transaction outstanding with a counterparty, and a legally enforceable master netting agreement exists with that counterparty, the netted MTM exposure, less collateral held, represents, in the Firm’s view, the appropriate measure of current credit risk. While useful as a current view of credit exposure, the net MTM value of the derivative receivables does not capture the potential future variability of that credit exposure. To capture the potential future variability of credit exposure, the Firm calculates, on a client-by-client basis, three measures of potential derivatives-related credit loss: Peak, Derivative Risk Equivalent (“DRE”) and Average exposure (“AVG”). These measures all incorporate netting and collateral benefits, where applicable. Peak exposure to a counterparty is an extreme measure of exposure calculated at a 97.5% confidence level. However, the total potential future credit risk embedded in the Firm’s derivatives portfolio is not the simple sum of all Peak client credit risks. This is because, at the portfolio level, credit risk is reduced by the fact that when offsetting transactions are done with separate counterparties, only one of the two trades can generate a credit loss, even if both counterparties were to default simultaneously. The Firm refers to this effect as market diversification, and the Market-Diversified Peak (“MDP”) measure is a portfolio aggregation of counterparty Peak measures, representing the maximum losses at the 97.5% confidence level that would occur if all counterparties defaulted under any one given market scenario and time frame. Derivative Risk Equivalent (“DRE”) exposure is a measure that expresses the riskiness of derivative exposure on a basis intended to be equivalent to the riskiness of loan exposures. The measurement is done by equating the unexpected loss in a derivative counterparty exposure (which takes into consideration both the loss volatility and the credit rating of the counterparty) with the unexpected loss in a loan exposure (which takes into consideration only the credit rating of the counterparty). DRE is a less extreme measure of potential credit loss than Peak and is the primary measure used by the Firm for credit approval of derivative transactions. Finally, Average exposure (“AVG”) is a measure of the expected MTM value of the Firm’s derivative receivables at future time periods, including the benefit of collateral. AVG exposure over the total life of the derivative contract is used as the primary metric for pricing purposes and is used to calculate credit capital and the Credit Valuation Adjustment (“CVA”), as further described below. Average exposure was $36 billion and $38 billion at December 31, 2005 and 2004, respectively, compared with derivative receivables MTM net of other highly liquid collateral of $44 billion and $57 billion at December 31, 2005 and 2004, respectively. The graph below shows exposure profiles to derivatives over the next 10 years as calculated by the MDP, DRE and AVG metrics. All three measures generally show declining exposure after the first year, if no new trades were added to the portfolio. Notes to consolidated financial statements 210 JPMorgan Chase & Co. /2010 Annual Report Estimated future benefit payments The following table presents benefit payments expected to be paid, which include the effect of expected future service, for the years indicated. The OPEB medical and life insurance payments are net of expected retiree contributions.
<table><tr><td>Year ended December 31,</td><td rowspan="2">U.S. defined benefit pension plans</td><td rowspan="2">Non-U.S. defined benefit pension plans</td><td rowspan="2">OPEB before Medicare Part D subsidy</td><td rowspan="2">Medicare Part D subsidy</td></tr><tr><td>(in millions)</td></tr><tr><td>2011</td><td>$1,001</td><td>$84</td><td>$99</td><td>$10</td></tr><tr><td>2012</td><td>1,011</td><td>92</td><td>97</td><td>11</td></tr><tr><td>2013</td><td>587</td><td>98</td><td>95</td><td>12</td></tr><tr><td>2014</td><td>593</td><td>102</td><td>94</td><td>13</td></tr><tr><td>2015</td><td>592</td><td>111</td><td>92</td><td>14</td></tr><tr><td>Years 2016—2020</td><td>3,013</td><td>640</td><td>418</td><td>78</td></tr></table>
Note 10 – Employee stock-based incentives Employee stock-based awards In 2010, 2009, and 2008, JPMorgan Chase granted long-term stock-based awards to certain key employees under the 2005 LongTerm Incentive Plan (the “2005 Plan”). The 2005 Plan became effective on May 17, 2005, and was amended in May 2008. Under the terms of the amended 2005 plan, as of December 31, 2010, 113 million shares of common stock are available for issuance through May 2013. The amended 2005 Plan is the only active plan under which the Firm is currently granting stock-based incentive awards. In the following discussion, the 2005 Plan, plus prior Firm plans and plans assumed as the result of acquisitions, are referred to collectively as the “LTI Plans,” and such plans constitute the Firm’s stock-based incentive plans. Restricted stock units (“RSUs”) are awarded at no cost to the recipient upon their grant. RSUs are generally granted annually and generally vest at a rate of 50% after two years and 50% after three years and convert into shares of common stock at the vesting date. In addition, RSUs typically include full-career eligibility provisions, which allow employees to continue to vest upon voluntary termination, subject to post-employment and other restrictions based on age or service-related requirements. All of these awards are subject to forfeiture until vested. An RSU entitles the recipient to receive cash payments equivalent to any dividends paid on the underlying common stock during the period the RSU is outstanding and, as such, are considered participating securities as discussed in Note 25 on page 269 of this Annual Report. Under the LTI Plans, stock options and stock appreciation rights (“SARs”) have generally been granted with an exercise price equal to the fair value of JPMorgan Chase’s common stock on the grant date. The Firm typically awards SARs to certain key employees once per year, and it also periodically grants discretionary stock-based incentive awards to individual employees, primarily in the form of both employee stock options and SARs. The 2010, 2009 and 2008 grants of SARs to key employees vest ratably over five years (i. e. , 20% per year). The 2010 grants of SARs contain full-career eligibility provisions; the 2009 and 2008 grants of SARs do not include any full-career eligibility provisions. SARs generally expire 10 years after the grant date. The Firm separately recognizes compensation expense for each tranche of each award as if it were a separate award with its own vesting date. Generally, for each tranche granted, compensation expense is recognized on a straight-line basis from the grant date until the vesting date of the respective tranche, provided that the employees will not become full-career eligible during the vesting period. For awards with full-career eligibility provisions and awards granted with no future substantive service requirement, the Firm accrues the estimated value of awards expected to be awarded to employees as of the grant date without giving consideration to the impact of post-employment restrictions. For each tranche granted to employees who will become full-career eligible during the vesting period, compensation expense is recognized on a straight-line basis from the grant date until the earlier of the employee’s fullcareer eligibility date or the vesting date of the respective tranche. The Firm’s policy for issuing shares upon settlement of employee stock-based incentive awards is to issue either new shares of common stock or treasury shares. During 2010, 2009 and 2008, the Firm settled all of its employee stock-based awards by issuing treasury shares. In January 2008, the Firm awarded to its Chairman and Chief Executive Officer up to 2 million SARs. The terms of this award are distinct from, and more restrictive than, other equity grants regularly awarded by the Firm. The SARs, which have a 10-year term, will become exercisable no earlier than January 22, 2013, and have an exercise price of $39.83. The number of SARs that will become exercisable (ranging from none to the full 2 million) and their exercise date or dates may be determined by the Board of Directors based on an annual assessment of the performance of both the CEO and JPMorgan Chase. The Firm recognizes this award ratably over an assumed five-year service period, subject to a requirement to recognize changes in the fair value of the award through the grant date. The Firm recognized $4 million, $9 million and $1 million in compensation expense in 2010, 2009 and 2008, respectively, for this award. Other-than-temporary impairment The following table presents credit losses that are included in the securities gains and losses table above.
<table><tr><td>Year ended December 31, (in millions)</td><td>2010</td><td>2009</td></tr><tr><td> Debt securities the Firm does not intend tosell that have credit losses</td><td></td><td></td></tr><tr><td>Total other-than-temporary impairmentlosses<sup>(a)</sup></td><td>$-94</td><td>$-946</td></tr><tr><td>Losses recorded in/(reclassified from)other comprehensive income</td><td>-6</td><td>368</td></tr><tr><td> Credit losses recognized in income<sup>(b)(c)</sup></td><td>$-100</td><td>$-578</td></tr></table>
a) For initial OTTI, represents the excess of the amortized cost over the fair value of AFS debt securities. For subsequent OTTI of the same security, represents additional declines in fair value subsequent to the previously recorded OTTI, if applicable. (b) Represents the credit loss component of certain prime mortgage-backed securities and obligations of U. S. states and municipalities for 2010, and certain prime and subprime mortgage-backed securities and obligations of U. S. states and municipalities for 2009 that the Firm does not intend to sell. Subsequent credit losses may be recorded on securities without a corresponding further decline in fair value if there has been a decline in expected cash flows. (c) Excluded from this table are OTTI losses of $7 million that were recognized in income in 2009, related to subprime mortgage-backed debt securities the Firm intended to sell. These securities were sold in 2009, resulting in the recognition of a recovery of $1 million. Changes in the credit loss component of credit-impaired debt securities The following table presents a rollforward for the years ended December 31, 2010 and 2009, of the credit loss component of OTTI losses that were recognized in income related to debt securities that the Firm does not intend to sell.
<table><tr><td>Year ended December 31, (in millions)</td><td>2010</td><td>2009</td></tr><tr><td>Balance, beginning of period</td><td>$578</td><td>$—</td></tr><tr><td>Additions:</td><td></td><td></td></tr><tr><td>Newly credit-impaired securities</td><td>—</td><td>578</td></tr><tr><td>Increase in losses on previously credit-impairedsecurities</td><td>94</td><td>—</td></tr><tr><td>Losses reclassified from other comprehensiveincome on previously credit-impaired securities</td><td>6</td><td>—</td></tr><tr><td>Reductions:</td><td></td><td></td></tr><tr><td>Sales of credit-impaired securities</td><td>-31</td><td>—</td></tr><tr><td>Impact of new accounting guidance relatedto VIEs</td><td>-15</td><td>—</td></tr><tr><td> Balance, end of period</td><td>$632</td><td>$578</td></tr></table>
Gross unrealized losses Gross unrealized losses have generally decreased since December 31, 2009, due primarily to market spread improvement and increased liquidity, driving asset prices higher. However, gross unrealized losses on certain securities have increased, including on certain corporate debt securities, which are primarily government-guaranteed positions that experienced credit spread widening. As of December 31, 2010, the Firm does not intend to sell the securities with a loss position in AOCI, and it is not likely that the Firm will be required to sell these securities before recovery of their amortized cost basis. Except for the securities reported in the table above for which credit losses have been recognized in income, the Firm believes that the securities with an unrealized loss in AOCI are not other-than-temporarily impaired as of December 31, 2010. Following is a description of the Firm’s principal security investments with the most significant unrealized losses as of December 31, 2010, and the key assumptions used in the Firm’s estimate of the present value of the cash flows most likely to be collected from these investments. Mortgage-backed securities – Prime and Alt-A nonagency As of December 31, 2010, gross unrealized losses related to prime and Alt-A residential mortgage-backed securities issued by private issuers were $250 million, all of which have been in an unrealized loss position for 12 months or more. Approximately 70% of the total portfolio (by amortized cost) are currently rated below investment-grade; the Firm has recorded other-than-temporary impairment losses on 55% of the below investment-grade positions. In analyzing prime and Alt-A residential mortgage-backed securities for potential credit losses, the Firm utilizes a methodology that focuses on loan-level detail to estimate future cash flows, which are then allocated to the various tranches of the securities. The loanlevel analysis primarily considers current home value, loan-to-value (“LTV”) ratio, loan type and geographical location of the underlying property to forecast prepayment, home price, default rate and loss severity. The forecasted weighted average underlying default rate on the positions was 21% and the related weighted average loss severity was 50%. Based on this analysis, an OTTI loss of $6 million was recognized in 2010 related to securities that experienced increased delinquency rates associated with specific collateral types and origination dates. Overall losses have decreased since December 31, 2009, with the recovery in security prices resulting from increased demand for higher-yielding asset classes and a deceleration in the pace of home price declines due in part to the U. S. government programs to facilitate financing and to spur home purchases. The unrealized loss of $250 million is considered temporary, based on management’s assessment that the estimated future cash flows together with the credit enhancement levels for those securities remain sufficient to support the Firm’s investment. The credit enhancements associated with the below investment-grade and investment-grade positions are 9% and 24%, respectively. Asset-backed securities – Collateralized loan obligations As of December 31, 2010, gross unrealized losses related to CLOs were $210 million, of which $200 million related to securities that were in an unrealized loss position for 12 months or more. Overall losses have decreased since December 31, 2009, mainly as a result of lower default forecasts and spread tightening across various asset classes. Substantially all of these securities are rated “AAA,” “AA” and “A” and have an average credit enhancement of 30%. Credit enhancement in CLOs is primarily in the form of subordination, which is a form of structural credit enhancement where realized losses associated with assets held by an issuing vehicle are allocated to issued tranches considering their relative seniority. The key assumptions considered in analyzing potential credit losses were underlying loan and debt security defaults and loss severity. Based on current default trends, the Firm assumed collateral default rates of 2.1% for 2010 and 5% thereafter. Further, loss severities were assumed to be 48% for loans and 78% for debt securities. Losses on collateral were estimated to occur approximately 18 months after default. Pledged assets At December 31, 2010, assets were pledged to collateralize repurchase agreements, other securities financing agreements, derivative transactions and for other purposes, including to secure borrowings and public deposits. Certain of these pledged assets may be sold or repledged by the secured parties and are identified as financial instruments owned (pledged to various parties) on the Consolidated Balance Sheets. In addition, at December 31, 2010 and 2009, the Firm had pledged $288.7 billion and $344.6 billion, respectively, of financial instruments it owns that may not be sold or repledged by the secured parties. The significant components of the Firm’s pledged assets were as follows. |
1 | Does Case reserves inCeded keeps increasing each year between 2008 and 2009? | The following table illustrates the effect that a 10% unfavorable or favorable movement in foreign currency exchange rates, relative to the U. S. dollar, would have on the fair value of our forward exchange contracts as of October 30, 2010 and October 31, 2009:
<table><tr><td></td><td>October 30, 2010</td><td>October 31, 2009</td></tr><tr><td>Fair value of forward exchange contracts asset</td><td>$7,256</td><td>$8,367</td></tr><tr><td>Fair value of forward exchange contracts after a 10% unfavorable movement in foreign currency exchange rates asset</td><td>$22,062</td><td>$20,132</td></tr><tr><td>Fair value of forward exchange contracts after a 10% favorable movement in foreign currency exchange rates liability</td><td>$-7,396</td><td>$-6,781</td></tr></table>
The calculation assumes that each exchange rate would change in the same direction relative to the U. S. dollar. In addition to the direct effects of changes in exchange rates, such changes typically affect the volume of sales or the foreign currency sales price as competitors’ products become more or less attractive. Our sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency selling prices. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) ACE Limited and Subsidiaries Under Swiss corporate law, the Company may not generally issue Common Shares below their par value. In the event there is a need to raise common equity at a time when the trading price of the Company’s Common Shares is below par value, the Company will need to obtain shareholder approval to decrease the par value of the Common Shares. b) Shares issued, outstanding, authorized, and conditional Following is a table of changes in Common Shares issued and outstanding for the years ended December 31, 2009, 2008, and 2007:
<table><tr><td></td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Shares issued, beginning of year</td><td>335,413,501</td><td>329,704,531</td><td>326,455,468</td></tr><tr><td>Shares issued, net</td><td>2,000,000</td><td>3,140,194</td><td>1,213,663</td></tr><tr><td>Exercise of stock options</td><td>168,720</td><td>2,365,401</td><td>1,830,004</td></tr><tr><td>Shares issued under Employee Stock Purchase Plan</td><td>259,395</td><td>203,375</td><td>205,396</td></tr><tr><td>Shares issued, end of year</td><td>337,841,616</td><td>335,413,501</td><td>329,704,531</td></tr><tr><td>Common Shares in treasury, end of year</td><td>-1,316,959</td><td>-1,768,030</td><td>–</td></tr><tr><td>Shares issued and outstanding, end of year</td><td>336,524,657</td><td>333,645,471</td><td>329,704,531</td></tr><tr><td> <i>Common Shares issued to employee trust</i></td><td></td><td></td><td></td></tr><tr><td>Balance, beginning of year</td><td>-108,981</td><td>-117,231</td><td>-166,425</td></tr><tr><td>Shares redeemed</td><td>7,500</td><td>8,250</td><td>49,194</td></tr><tr><td>Balance, end of year</td><td>-101,481</td><td>-108,981</td><td>-117,231</td></tr></table>
In July 2008, prior to the Continuation, the Company issued and placed 2,000,000 Common Shares in treasury principally for issuance upon the exercise of employee stock options. At December 31, 2009, 1,316,959 Common Shares remain in treasury after net shares redeemed under employee share-based compensation plans. Common Shares issued to employee trust are the shares issued by the Company to a rabbi trust for deferred compensation obligations as discussed in Note 12 f) below. Shares authorized The Board is currently authorized to increase the share capital from time to time through the issuance of up to 99,750,000 fully paid up Common Shares with a par value of CHF 31.88 each. Conditional share capital for bonds and similar debt instruments The share capital of the Company may be increased through the issuance of a maximum of 33,000,000 Common Shares with a par value of CHF 31.88 each, payable in full, through the exercise of conversion and/or option or warrant rights granted in connection with bonds, notes, or similar instruments, issued or to be issued by the Company, including convertible debt instruments. Conditional share capital for employee benefit plans The share capital of the Company may be increased through the issuance of a maximum of 30,401,725 Common Shares with a par value of CHF 31.88 each, payable in full, in connection with the exercise of option rights granted to any employee of the Company, and any consultant, director, or other person providing services to the Company. c) ACE Limited securities repurchase authorization In November 2001, the Board authorized the repurchase of any ACE issued debt or capital securities, which includes ACE’s Common Shares, up to an aggregate total of $250 million. These purchases may take place from time to time in the open market or in private purchase transactions. At December 31, 2009, this authorization had not been utilized. d) General restrictions The holders of the Common Shares are entitled to receive dividends as proposed by the Board and approved by the shareholders. Holders of Common Shares are allowed one vote per share provided that, if the controlled shares of any shareholder constitute ten percent or more of the outstanding Common Shares of the Company, only a fraction of the vote will be allowed The process of establishing loss reserves for property and casualty claims can be complex and is subject to considerable uncertainty as it requires the use of informed estimates and judgments based on circumstances known at the date of accrual. The following table shows our total reserves segregated between case reserves (including loss expense reserves) and IBNR reserves at December 31, 2009 and 2008.
<table><tr><td></td><td colspan="3"> 2009</td><td colspan="3">2008</td></tr><tr><td>(in millions of U.S. dollars)</td><td> Gross</td><td> Ceded</td><td> Net</td><td>Gross</td><td>Ceded</td><td>Net</td></tr><tr><td>Case reserves</td><td>$17,307</td><td>$6,664</td><td>$10,643</td><td>$16,583</td><td>$6,539</td><td>$10,044</td></tr><tr><td>IBNR reserves</td><td>20,476</td><td>6,081</td><td>14,395</td><td>20,593</td><td>6,396</td><td>14,197</td></tr><tr><td>Total</td><td>$37,783</td><td>$12,745</td><td>$25,038</td><td>$37,176</td><td>$12,935</td><td>$24,241</td></tr></table>
The following table segregates loss reserves by line of business including property and all other, casualty, and personal accident (A&H) at December 31, 2009 and 2008. In the table, loss expenses are defined to include unallocated and allocated loss adjustment expenses. For certain lines, in particular ACE International and ACE Bermuda products, loss adjustment expenses are partially included in IBNR and partially included in loss expenses.
<table><tr><td></td><td colspan="3"> 2009</td><td colspan="3">2008</td></tr><tr><td>(in millions of U.S. dollars)</td><td> Gross</td><td> Ceded</td><td> Net</td><td>Gross</td><td>Ceded</td><td>Net</td></tr><tr><td><i>Property and all other</i></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Case reserves</td><td>$3,149</td><td>$1,600</td><td>$1,549</td><td>$3,180</td><td>$1,367</td><td>$1,813</td></tr><tr><td>Loss expenses</td><td>260</td><td>81</td><td>179</td><td>264</td><td>92</td><td>172</td></tr><tr><td>IBNR reserves</td><td>2,028</td><td>815</td><td>1,213</td><td>2,456</td><td>1,084</td><td>1,372</td></tr><tr><td>Subtotal</td><td>5,437</td><td>2,496</td><td>2,941</td><td>5,900</td><td>2,543</td><td>3,357</td></tr><tr><td><i>Casualty</i></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Case reserves</td><td>9,506</td><td>3,177</td><td>6,329</td><td>8,700</td><td>3,178</td><td>5,522</td></tr><tr><td>Loss expenses</td><td>3,773</td><td>1,661</td><td>2,112</td><td>3,871</td><td>1,779</td><td>2,092</td></tr><tr><td>IBNR reserves</td><td>17,777</td><td>5,110</td><td>12,667</td><td>17,455</td><td>5,144</td><td>12,311</td></tr><tr><td>Subtotal</td><td>31,056</td><td>9,948</td><td>21,108</td><td>30,026</td><td>10,101</td><td>19,925</td></tr><tr><td><i>A&H</i></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Case reserves</td><td>588</td><td>144</td><td>444</td><td>536</td><td>121</td><td>415</td></tr><tr><td>Loss expenses</td><td>31</td><td>1</td><td>30</td><td>32</td><td>2</td><td>30</td></tr><tr><td>IBNR reserves</td><td>671</td><td>156</td><td>515</td><td>682</td><td>168</td><td>514</td></tr><tr><td>Subtotal</td><td>1,290</td><td>301</td><td>989</td><td>1,250</td><td>291</td><td>959</td></tr><tr><td><i>Total</i></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Case reserves</td><td>13,243</td><td>4,921</td><td>8,322</td><td>12,416</td><td>4,666</td><td>7,750</td></tr><tr><td>Loss expenses</td><td>4,064</td><td>1,743</td><td>2,321</td><td>4,167</td><td>1,873</td><td>2,294</td></tr><tr><td>IBNR reserves</td><td>20,476</td><td>6,081</td><td>14,395</td><td>20,593</td><td>6,396</td><td>14,197</td></tr><tr><td>Total</td><td>$37,783</td><td>$12,745</td><td>$25,038</td><td>$37,176</td><td>$12,935</td><td>$24,241</td></tr></table>
The judgments used to estimate unpaid loss and loss expense reserves require different considerations depending upon the individual circumstances underlying the insured loss. For example, the reserves established for high excess casualty claims, A&E claims, claims from major catastrophic events, or the IBNR for our various product lines each require different assumptions and judgments to be made. Necessary judgments are based on numerous factors and may be revised as additional experience and other data become available and are reviewed, as new or improved methods are developed, or as laws change. Hence, ultimate loss payments may differ from the estimate of the ultimate liabilities made at the balance sheet date. Changes to our previous estimates of prior period loss reserves impact the reported calendar year underwriting results by worsening our reported results if the prior year reserves prove to be deficient or improving our reported results if the prior year reserves prove to be redundant. The potential for variation in loss reserves is impacted by numerous factors, which we discuss below. We establish loss and loss expense reserves for our liabilities from claims for all of the insurance and reinsurance business that we write. For those claims reported by insureds or ceding companies to us prior to the balance sheet date, and |
519,050 | What is the average amount of 2019 Notes of 2013, and Granted of Number of shares ? | also subject to financial covenants which require the Company to limit its consolidated total leverage ratio and to maintain a consolidated interest coverage ratio. The most restrictive covenant is the consolidated total leverage ratio which is limited to 3.5. The Company was in compliance with its debt covenants throughout the years ended December 31, 2013 and 2012. On June 6, 2013, the Company completed a public offering of $800 million aggregate principal amount of 2.050% senior unsecured notes due October 1, 2018. The notes were issued at 99.791% of their principal amount. Net proceeds of $793.5 million were used to pay off a portion of the outstanding revolver balance under the 2012 Facility. The notes bear interest at a fixed rate of 2.050% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2013. Roper may redeem some or all of the notes at any time or from time to time, at 100% of their principal amount plus a make-whole premium based on a spread to U. S. Treasury securities as described in the indenture relating to the notes. On November 21, 2012, Roper completed a public offering of $400 million aggregate principal amount of 1.850% senior unsecured notes due November 15, 2017 and $500 million aggregate principal amount of 3.125% senior unsecured notes due November 15, 2022. The notes bear interest at a fixed rate of 1.850% and 3.125% per year, respectively, payable semi-annually in arrears on May 15 and November 15 of each year, beginning May 15, 2013. Roper may redeem some or all of the notes at any time or from time to time, at 100% of their principal amount plus a make-whole premium based on a spread to U. S. Treasury securities as described in the indenture relating to the notes. In September 2009, the Company completed a public offering of $500 million aggregate principal amount of 6.25% senior unsecured notes due September 2019. The notes bear interest at a fixed rate of 6.25% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning March 1, 2010. Roper may redeem some of all of these notes at any time or from time to time, at 100% of their principal amount, plus a makewhole premium based on a spread to U. S. Treasury securities. The Company’s senior notes are unsecured senior obligations of the Company and rank equally in right of payment with all of Roper’s existing and future unsecured and unsubordinated indebtedness. The notes are effectively subordinated to any of its existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The notes are not guaranteed by any of Roper’s subsidiaries and are effectively subordinated to all existing and future indebtedness and other liabilities of Roper’s subsidiaries. On August 15, 2013, $500 million of senior notes due 2013 matured, and were repaid using revolver borrowings from the 2012 Facility. Other debt includes $8 million of senior subordinated convertible notes due 2034. Total debt at December 31 consisted of the following (in thousands):
<table><tr><td></td><td>2013</td><td>2012</td></tr><tr><td>$1.50 billion revolving credit facility</td><td>$250,000</td><td>$100,000</td></tr><tr><td>2013 Notes*</td><td>-</td><td>505,087</td></tr><tr><td>2017 Notes</td><td>400,000</td><td>400,000</td></tr><tr><td>2018 Notes</td><td>800,000</td><td>-</td></tr><tr><td>2019 Notes</td><td>500,000</td><td>500,000</td></tr><tr><td>2022 Notes</td><td>500,000</td><td>500,000</td></tr><tr><td>Senior Subordinated Convertible Notes</td><td>8,270</td><td>11,594</td></tr><tr><td>Other</td><td>6,582</td><td>5,441</td></tr><tr><td>Total debt</td><td>2,464,852</td><td>2,022,122</td></tr><tr><td>Less current portion</td><td>11,016</td><td>519,015</td></tr><tr><td>Long-term debt</td><td>$2,453,836</td><td>$1,503,107</td></tr></table>
*Shown net of fair value swap adjustment of $5,087. represents the period of time that options granted are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U. S. Treasury yield curve in effect at the time of grant. The weighted-average fair value of options granted in 2013, 2012 and 2011 were calculated using the following weighted-average assumptions:
<table><tr><td></td><td>2013</td><td>2012</td><td>2011</td></tr><tr><td>Weighted-average fair value ($)</td><td>37.08</td><td>30.25</td><td>24.45</td></tr><tr><td>Risk-free interest rate (%)</td><td>0.86</td><td>0.77</td><td>1.91</td></tr><tr><td>Average expected option life (years)</td><td>5.19</td><td>5.24</td><td>5.34</td></tr><tr><td>Expected volatility (%)</td><td>36.09</td><td>36.51</td><td>35.27</td></tr><tr><td>Expected dividend yield (%)</td><td>0.56</td><td>0.58</td><td>0.60</td></tr></table>
The following table summarizes the Company’s activities with respect to its stock option plans for the years ended December 31, 2013 and 2012:
<table><tr><td></td><td>Number of shares</td><td>Weighted-average exercise price per share</td><td>Weighted-average contractual term</td><td>Aggregate intrinsic value</td></tr><tr><td>Outstanding at January 1, 2012</td><td>3,822,662</td><td>$ 50.44</td><td></td><td></td></tr><tr><td>Granted</td><td>538,100</td><td>95.27</td><td></td><td></td></tr><tr><td>Exercised</td><td>-1,389,069</td><td>40.46</td><td></td><td></td></tr><tr><td>Canceled</td><td>-53,498</td><td>70.01</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2012</td><td>2,918,195</td><td>63.15</td><td>6.52</td><td>$ 141,029,378</td></tr><tr><td>Granted</td><td>601,350</td><td>117.78</td><td></td><td></td></tr><tr><td>Exercised</td><td>-424,945</td><td>56.48</td><td></td><td></td></tr><tr><td>Canceled</td><td>-106,164</td><td>98.74</td><td></td><td></td></tr><tr><td>Outstanding at December 31, 2013</td><td>2,988,436</td><td>74.00</td><td>6.22</td><td>$ 193,279,214</td></tr><tr><td>Exercisable at December 31, 2013</td><td>1,859,725</td><td>$ 56.99</td><td>4.84</td><td>$ 151,929,651</td></tr></table>
The following table summarizes information for stock options outstanding at December 31, 2013:
<table><tr><td></td><td colspan="3">Outstanding options</td><td colspan="2">Exercisable options</td></tr><tr><td>Exercise price</td><td>Number</td><td>Averageexerciseprice</td><td>Average remaininglife (years)</td><td>Number</td><td>Averageexerciseprice</td></tr><tr><td>$ 14.09 - 28.17</td><td>157,638</td><td>$ 23.70</td><td>0.2</td><td>157,638</td><td>$ 23.70</td></tr><tr><td>28.17 - 42.26</td><td>126,574</td><td>41.81</td><td>5.2</td><td>126.574</td><td>41.81</td></tr><tr><td>42.27 - 56.34</td><td>1,113,058</td><td>53.79</td><td>4.4</td><td>1,113,058</td><td>53.79</td></tr><tr><td>56.35 - 70.43</td><td>96,800</td><td>67.88</td><td>7.5</td><td>45,300</td><td>66.71</td></tr><tr><td>70.44 - 84.52</td><td>453,392</td><td>74.63</td><td>7.1</td><td>278,034</td><td>75.21</td></tr><tr><td>84.53 - 98.60</td><td>419,924</td><td>94.00</td><td>8.1</td><td>130,085</td><td>93.91</td></tr><tr><td>98.61 - 112.69</td><td>48,700</td><td>103.41</td><td>8.6</td><td>9,036</td><td>103.64</td></tr><tr><td>112.70 - 126.77</td><td>547,350</td><td>117.03</td><td>9.2</td><td>-</td><td>-</td></tr><tr><td>126.78 - 140.86</td><td>25,000</td><td>131.54</td><td>9.6</td><td>-</td><td>-</td></tr><tr><td>$ 14.09 - 140.86</td><td>2,988,436</td><td>$ 74.00</td><td>6.2</td><td>1,859,725</td><td>$ 56.99</td></tr></table>
At December 31, 2013, there was $23.7 million of total unrecognized compensation expense related to nonvested options granted under the Company’s share-based payment plans. That cost is expected to be recognized over a weighted-average period of 2.0 years. The total intrinsic value of options exercised in 2013, 2012 and 2011 was $28.8 million, $86.0 million and $41.2 million, respectively. Cash received from option exercises under all plans in 2013 and 2012 was $24.0 million and $56.1 million, respectively NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): |
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