CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT'S DISCUSSION AND ANALYSIS 95 Non-Core Assets The table below shows the composition of our non-core assets as of the dates indicated:
## Table 0 ##
(1)  Our SBO portfolio consists of home equity loans and lines that were originally serviced by others.
We now service a portion of this portfolio internally.
Non-core assets are primarily loans inconsistent with our strategic goals, generally as a result of geographic location, industry, product type or risk level.
We have actively managed these loans down since they were designated as non-core on June 30, 2009.
Between that time and December 31, 2014, the portfolio has decreased $17.4 billion, including principal repayments of $9.4 billion; charge-offs of $3.9 billion; transfers back to the core portfolio of $2.8 billion; and sales of $1.3 billion.
Transfers from non-core back to core are handled on an individual request basis and managed through the chief credit officer for our non-core portfolio.
The rationale can vary and in the past some loan portfolio transfers have been approved after determination that the original decision to place them in non-core was not deemed appropriate.
Individual loans can be reconsidered when the customer prospects change—typically related to situations where a non-strategic customer becomes a strategic customer due to growth or a new credit request that was previously considered to be unlikely.
Non-core assets totaled $3.1 billion as of December 31, 2014, down 19% from December 31, 2013 driven by principal repayments of $604 million.
Commercial non-core loan balances declined 42% compared to December 31, 2013, ending at $284 million compared to $489 million at December 31, 2013.
Retail non-core loan balances of $2.8 billion decreased 16% or $520 million compared to December 31, 2013.
The largest component of our non-core portfolio is the home equity portfolio serviced by other firms (“SBO”).
The SBO portfolio is a liquidating portfolio consisting of pools of home equity loans and lines of credit purchased between 2003 and 2007.
Although our SBO portfolio consists of loans that were initially serviced by others, we now service a portion of this portfolio internally.
SBO balances serviced externally totaled $1.1 billion and $1.3 billion as of December 31, 2014 and December 31, 2013, respectively.
The SBO portfolio has been closed to new purchases since the third quarter of 2007, with exposure down to $1.8 billion as of December 31, 2014, compared to $2.2 billion as of December 31, 2013.
The SBO portfolio represented 6% of the retail real estate secured portfolio and 4% of the overall retail loan portfolio as of December 31, 2014.
The credit profile of the SBO portfolio was significantly weaker than the core real estate portfolio, with a weighted- average refreshed FICO score of 713 and combined loan-to-value (“CLTV”) of 88.9% as of December 31, 2014.
The proportion of the portfolio in a second lien (subordinated) position was 95% with 72% of the portfolio in out-of-footprint geographies including 29% in California, Nevada, Arizona and Florida.
The remaining $135 recognized in 2013 relates to a valuation allowance established on a portion of available foreign tax credits in the United States.
These credits can be carried forward for 10 years, and have an expiration period ranging from 2016 to 2023 as of December 31, 2013 (2016 to 2025 as of December 31, 2015).
After weighing all available positive and negative evidence, as described above, management determined that it was no longer more likely than not that Alcoa will realize the full tax benefit of these foreign tax credits.
This was primarily due to lower foreign sourced taxable income after consideration of tax planning strategies and after the inclusion of earnings from foreign subsidiaries projected to be distributable as taxable foreign dividends.
This valuation allowance was reevaluated as of December 31, 2015, and due to reductions in foreign sourced taxable income, a $134 discrete income tax charge was recognized.
Additionally, $15 of foreign tax credits expired at the end of 2015 resulting in a corresponding decrease to the valuation allowance.
At December 31, 2015, the amount of the valuation allowance was $254.
The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, an increase or decrease to this allowance may result based on changes in facts and circumstances.
In 2015, Alcoa recognized an additional $141 discrete income tax charge for valuation allowances on certain deferred tax assets in Iceland and Suriname.
Of this amount, an $85 valuation allowance was established on the full value of the deferred tax assets in Suriname, which were related mostly to employee benefits and tax loss carryforwards.
These deferred tax assets have an expiration period ranging from 2016 to 2022.
The remaining $56 charge relates to a valuation allowance established on a portion of the deferred tax assets recorded in Iceland.
These deferred tax assets have an expiration period ranging from 2017 to 2023.
After weighing all available positive and negative evidence, as described above, management determined that it was no longer more likely than not that Alcoa will realize the tax benefit of either of these deferred tax assets.
This was mainly driven by a decline in the outlook of the Primary Metals business, combined with prior year cumulative losses and a short expiration period.
The need for this valuation allowance will be assessed on a continuous basis in future periods and, as a result, a portion or all of the allowance may be reversed based on changes in facts and circumstances.
In December 2011, one of Alcoa’s subsidiaries in Brazil applied for a tax holiday related to its expanded mining and refining operations.
During 2013, the application was amended and re-filed and, separately, a similar application was filed for another one of the Company’s subsidiaries in Brazil.
The deadline for the Brazilian government to deny the application was July 11, 2014.
Since Alcoa did not receive notice that its applications were denied, the tax holiday took effect automatically on July 12, 2014.
As a result, the tax rate applicable to qualified holiday income for these subsidiaries decreased significantly (from 34% to 15.25%), resulting in future cash tax savings over the 10-year holiday period (retroactively effective as of January 1, 2013).
Additionally, a portion of one of the subsidiaries net deferred tax asset that reverses within the holiday period was remeasured at the new tax rate (the net deferred tax asset of the other subsidiary was not remeasured since it could still be utilized against the subsidiary’s future earnings not subject to the tax holiday).
This remeasurement resulted in a decrease to that subsidiary’s net deferred tax asset and a noncash charge to earnings of $52 ($31 after noncontrolling interest).
The following table details the changes in the valuation allowance:
## Table 1 ##
The cumulative amount of Alcoa’s foreign undistributed net earnings for which no deferred taxes have been provided was approximately $4,000 at December 31, 2015.
Alcoa has a number of commitments and obligations related to the Company’s growth strategy in foreign jurisdictions.
As such, management has no plans to distribute such earnings in the foreseeable future, and, therefore, has determined it is not practicable to determine the related deferred tax liability.
$194.0 million, depreciation charges of $59.9 million and an impairment loss on a long-lived asset of $27.0 million.
We used $25.6 million in cash for investing activities during fiscal 2002.
Our primary use of cash was for business acquisitions, which totaled $278.3 million net of cash we acquired.
Our short-term investments decreased $304.0 million during the fiscal year, with proceeds of $3.15 billion from the sale upon maturity of certain short-term investments partially offset by reinvestments of $2.85 billion.
As a result of our continued investment in information systems and infrastructure, we also purchased property and equipment of $42.6 million and capitalized internal use software development projects of $21.3 million in fiscal 2002.
We used $210.5 million in cash for our financing activities in fiscal 2002.
The primary component of cash used was $318.4 million for the repurchase of treasury stock through our stock repurchase program.
See Note 17 of the financial statements.
This was partially offset by proceeds of $133.6 million we received from the issuance of common stock under employee stock plans.
In the normal course of business, we enter into leases for new or expanded facilities in both domestic and global locations.
We also evaluate, on an ongoing basis, the merits of acquiring technology or businesses, or establishing strategic relationships with and investing in other companies.
We may decide to use cash and cash equivalents to fund such activities in the future.
In May 2001, Intuit’s Board of Directors authorized the company to repurchase up to $500 million of common stock over a three-year period.
In July 2002, our Board of Directors increased the authorized purchase amount by $250 million.
The stock repurchase program is intended to help offset some of the dilution resulting from the issuance of shares under Intuit’s employee stock plans.
At July 31, 2002, we had repurchased a total of $326.8 million of common stock since the inception of the program.
In connection with the sale of our Quicken Loans mortgage business in July 2002, we have agreed to continue providing to the purchasing company an interest-bearing line of credit of up to $375.0 million to fund mortgage loans for a transition period of up to six months.
The line expires on January 31, 2003.
The line is secured by the related mortgage loans and had an outstanding balance of $245.6 million at July 31, 2002.
See Note 11 of the financial statements.
Loans to executive officers and other employees totaled $12.9 million at July 31, 2001 and $21.3 million at July 31, 2002.
Loans to executive officers are primarily relocation loans and none of these were made or modified since July 31, 2002.
Loans are generally interest-bearing, secured by real property and have maturity dates of up to 10 years.
See Note 22 of the financial statements.
We believe that our cash, cash equivalents and short-term investments will be sufficient to meet anticipated seasonal working capital and capital expenditure requirements for at least the next twelve months.
The following table summarizes our contractual obligations at July 31, 2002:
## Table 2 ##

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="2">December 31,</td><td></td><td></td><td></td></tr><tr><td>(dollars in millions)</td><td>2014</td><td>2013</td><td>(Date of Designation) June 30, 2009</td><td>Change from 2014-2013</td><td>Change from 2014-2009</td></tr><tr><td>Commercial</td><td>$68</td><td>$108</td><td>$1,900</td><td>-37%</td><td>-96%</td></tr><tr><td>Commercial real estate</td><td>216</td><td>381</td><td>3,412</td><td>-43</td><td>-94</td></tr><tr><td>Total commercial</td><td>284</td><td>489</td><td>5,312</td><td>-42</td><td>-95</td></tr><tr><td>Residential mortgages</td><td>365</td><td>432</td><td>1,467</td><td>-16</td><td>-75</td></tr><tr><td>Home equity loans</td><td>118</td><td>151</td><td>384</td><td>-22</td><td>-69</td></tr><tr><td>Home equity lines of credit</td><td>121</td><td>111</td><td>231</td><td>9</td><td>-48</td></tr><tr><td>Home equity loans serviced by others<sup>-1</sup></td><td>1,228</td><td>1,492</td><td>4,591</td><td>-18</td><td>-73</td></tr><tr><td>Home equity lines of credit serviced by others<sup>-1</sup></td><td>550</td><td>679</td><td>1,589</td><td>-19</td><td>-65</td></tr><tr><td>Automobile</td><td>—</td><td>—</td><td>769</td><td>—</td><td>-100</td></tr><tr><td>Student</td><td>369</td><td>406</td><td>1,495</td><td>-9</td><td>-75</td></tr><tr><td>Credit cards</td><td>—</td><td>—</td><td>995</td><td>—</td><td>-100</td></tr><tr><td>Other retail</td><td>—</td><td>—</td><td>3,268</td><td>—</td><td>-100</td></tr><tr><td>Total retail</td><td>2,751</td><td>3,271</td><td>14,789</td><td>-16</td><td>-81</td></tr><tr><td>Total non-core loans</td><td>3,035</td><td>3,760</td><td>20,101</td><td>-19</td><td>-85</td></tr><tr><td>Other assets</td><td>65</td><td>81</td><td>378</td><td>-20</td><td>-83</td></tr><tr><td>Total non-core assets</td><td>$3,100</td><td>$3,841</td><td>$20,479</td><td>-19%</td><td>-85%</td></tr></table>
<table><tr><td>December 31,</td><td>2015</td><td>2014</td><td>2013</td></tr><tr><td>Balance at beginning of year</td><td>$1,668</td><td>$1,804</td><td>$1,400</td></tr><tr><td>Increase to allowance</td><td>472</td><td>117</td><td>471</td></tr><tr><td>Release of allowance</td><td>-42</td><td>-77</td><td>-41</td></tr><tr><td>Acquisitions and divestitures (F)</td><td>29</td><td>-37</td><td>-</td></tr><tr><td>U.S. state tax apportionment and tax rate changes</td><td>-45</td><td>-80</td><td>-32</td></tr><tr><td>Foreign currency translation</td><td>-45</td><td>-59</td><td>6</td></tr><tr><td>Balance at end of year</td><td>$2,037</td><td>$1,668</td><td>$1,804</td></tr></table>
<table><tr><td></td><td colspan="5"> Payments Due by Period</td></tr><tr><td><i>(In millions)</i></td><td rowspan="2"> Less than 1  year</td><td rowspan="2"> 1-3  years</td><td rowspan="2"> 4-5  years</td><td rowspan="2"> After 5  years</td><td></td></tr><tr><td> Contractual Obligations</td><td> Total</td></tr><tr><td>Restricted cash</td><td>$11.3</td><td>$—</td><td>$—</td><td>$—</td><td>$11.3</td></tr><tr><td>Short-term notes payable</td><td>17.9</td><td>—</td><td></td><td>—</td><td>17.9</td></tr><tr><td>Long-term debt</td><td>—</td><td>8.1</td><td>2.7</td><td>3.8</td><td>14.6</td></tr><tr><td>Operating leases</td><td>31.2</td><td>50.6</td><td>41.9</td><td>29.5</td><td>153.2</td></tr><tr><td>Other obligations</td><td>25.4</td><td>—</td><td>—</td><td>—</td><td>25.4</td></tr><tr><td>Total contractual cash obligations</td><td>$85.8</td><td>$58.7</td><td>$44.6</td><td>$33.3</td><td>$222.4</td></tr></table>

Question: Does the value of Home equity loans in 2014 greater than that in 2013?
Answer: no