Question: How much of profit before taxes is there in total (in 2017) without U.S. tax reform impact and Gain on sale of equity investment? (in million)

def solution():
    # Define variables name and value
    profit_before_taxes = 4082
    restructuring_costs = 1256
    mark_to_market_losses = 301

    # Do math calculation to get the answer
    answer = (profit_before_taxes + restructuring_costs) + mark_to_market_losses

    return answer

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:

||Full Year 2018|Full Year 2017|
|(Millions of dollars)|Profit Before Taxes|ProfitPer Share|Profit Before Taxes|ProfitPer Share|
|Profit|$7,822|$10.26|$4,082|$1.26|
|Restructuring costs|386|0.50|1,256|1.68|
|Mark-to-market losses|495|0.64|301|0.26|
|Deferred tax valuation allowance adjustments|—|-0.01|—|-0.18|
|U.S. tax reform impact|—|-0.17|—|3.95|
|Gain on sale of equity investment|—|—|-85|-0.09|
|Adjusted profit|$8,703|$11.22|$5,554|$6.88|

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.

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.

||Grant Year|
||2018|2017|2016|
|Weighted-average dividend yield|2.7%|3.4%|3.2%|
|Weighted-average volatility|30.2%|29.2%|31.1%|
|Range of volatilities|21.5-33.0%|22.1-33.0%|22.5-33.4%|
|Range of risk-free interest rates|2.02-2.87%|0.81-2.35%|0.62-1.73%|
|Weighted-average expected lives|8 years|8 years|8 years|


Question: What is the proportion of Pensions' Service cost of of net periodic benefit cost in U.S. Plans to the total in 2006?

def solution():
    # Define variables name and value
    us_plans_service_cost = 130
    total_service_cost = 208

    # Do math calculation to get the answer
    answer = (us_plans_service_cost / total_service_cost) * 100

    return answer

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:

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):

||Pensions|Postretirement|
|(in millions)|Non-U.S. Plans|U.S. Plans|Total|Non-U.S. Plans|U.S. Plans|Total|
| 2006|||||||
|Components of net periodic benefit cost:|||||||
|Service cost|$78|$130|$208|$4|$6|$10|
|Interest cost|36|169|205|2|11|13|
|Expected return on assets|-28|-201|-229|—|—|—|
|Amortization of prior service cost|-9|-3|-12|—|-6|-6|
|Amortization of transitional obligation|1|—|1|—|—|—|
|Recognition of net actuarial (gains)/losses|16|75|91|—|—|—|
|Other|1|6|7|—|—|—|
|Net periodic benefit cost|$95|$176|$271|$6|$11|$17|
|Total recognized in other comprehensive income|$38|$24|$62|$—|$—|$—|
|Total recognized in net periodic benefit cost and other comprehensive income|$133|$200|$333|$6|$11|$17|
|2005|||||||
|Components of net periodic benefit cost:|||||||
|Service cost|$71|$111|$182|$4|$5|$9|
|Interest cost|32|153|185|2|11|13|
|Expected return on assets|-21|-180|-201|—|—|—|
|Amortization of prior service cost|-10|-3|-13|—|-6|-6|
|Amortization of transitional obligation|1|—|1|—|—|—|
|Recognition of net actuarial (gains)/losses|21|55|76|—|—|—|
|Other|7|1|8|—|—|—|
|Net periodic benefit cost|$101|$137|$238|$6|$10|$16|
|2004|||||||
|Components of net periodic benefit cost:|||||||
|Service cost|$59|$101|$160|$3|$6|$9|
|Interest cost|33|147|180|2|14|16|
|Expected return on assets|-22|-170|-192|—|—|—|
|Amortization of prior service cost|-8|—|-8|—|-7|-7|
|Amortization of transitional obligation|2|—|2|—|—|—|
|Recognition of net actuarial (gains)/losses|15|53|68|11|2|13|
|Other*|-24|—|-24|3|—|3|
|Net periodic benefit cost|$55|$131|$186|$19|$15|$34|

* 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.

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.

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.

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.

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 :

|Plan Category|Number of Securitiesto be Issued UponExercise ofOutstanding Options, Warrants and Rights-1 (A)(B)|Weighted-AverageExercise Price ofOutstanding Options, Warrants and Rights|Number of SecuritiesRemaining Available forFuture Issuance UnderEquity CompensationPlans (ExcludingSecurities Reflected in Column (A)) (C)|
|Equity compensation plans approved by security holders|1,471,449|$136.62|3,578,241|

(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.

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.

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.


Question: What is the sum of International Consumer and Network Services of 2016, U.S. Consumer Services of 2017, and Card Member receivables of 2016 ?

def solution():
    # Define variables name and value
    international_consumer_and_network_services_2016 = 6971.0
    us_consumer_services_2017 = 13143.0
    card_member_receivables_2016 = 47308.0

    # Do math calculation to get the answer
    temp_sum = international_consumer_and_network_services_2016 + us_consumer_services_2017
    answer = temp_sum + card_member_receivables_2016

    return answer

PROVISIONS FOR LOSSES Charge card provision for losses decreased $41 million or 6 percent in 2016 compared to 2015, and $55 million or 7 percent in 2015 compared to 2014.

The decrease in 2016 was driven by lower net write-offs and improved delinquencies.

The decrease in 2015 reflects a reserve release versus a reserve build in 2014, partially offset by higher write-offs.

Card Member loans provision for losses increased $45 million or 4 percent in 2016 compared to 2015, and $52 million or 5 percent in 2015 compared to 2014.

The increase in 2016 was primarily driven by strong momentum in our lending growth initiatives, resulting in higher loan balances, increased net write-offs in the current year and a slight increase in delinquencies, partially offset by the impact of the HFS portfolios, as the current year does not reflect the associated credit costs, as previously mentioned.

The increase in 2015 primarily reflects a reserve build versus a reserve release in 2014.

The reserve build in 2015 was due to a small increase in delinquency rates combined with an increase in loan balances, partially offset by lower write-offs and the impact related to transferring the HFS portfolios to Card Member loans and receivables HFS in December 2015.

Other provision for losses increased $34 million or 56 percent in 2016 compared to 2015, and decreased $53 million or 46 percent in 2015 compared to 2014.

The increase in 2016 was primarily driven by growth in the commercial financing portfolio resulting in higher net write-offs.

The decrease in 2015 was primarily due to a merchant-related charge in the fourth quarter of 2014.

(a) Beginning December 1, 2015 through to the sale completion dates, includes the valuation allowance adjustment associated with the HFS portfolios.

EXPENSES Marketing and promotion expenses increased $541 million or 17 percent in 2016 compared to 2015, and decreased $107 million or 3 percent in 2015 compared to 2014 (increasing 1 percent on an FX-adjusted basis), with higher levels of spending on growth initiatives in both periods.2 Card Member rewards expenses decreased $203 million or 3 percent in 2016 compared to 2015 and increased $65 million or 1 percent in 2015 compared to 2014.

The decrease in 2016 was primarily driven by lower cobrand rewards expense of $518 million, primarily reflecting lower Costco-related expenses and a shift in volumes to cash rebate cards for which the rewards costs are classified as contra-discount revenue, partially offset by increased spending volumes across other cobrand card products.

The lower cobrand rewards expense was partially offset by higher Membership Rewards expense of $315 million, primarily driven by an increase in new points earned as a result of higher spending volumes, recent enhancements to U. S.  Consumer and Small Business Platinum rewards and less of a decline in the weighted average cost (WAC) per point.

The increase in 2015 was primarily driven by higher cobrand rewards expense of $199 million, driven by rate impacts as a result of cobrand partnership renewal costs, partially offset by a decrease in Membership Rewards expense of $134 million.

The latter was primarily driven by slower growth in the Ultimate Redemption Rate (URR) and a decline in the WAC per point assumption, including the impact of the $109 million charge in the fourth quarter of 2014 related to the Delta partnership renewal, partially offset by increased expenses related to new points earned, driven by higher spending volumes.

The Membership Rewards URR for current program participants was 95 percent (rounded down) at December 31, 2016, compared to 95 percent (rounded down) at December 31, 2015, and 95 percent (rounded up) at December 31, 2014.2 Refer to footnote 1 on page 41 for details regarding foreign currency adjusted information

| Credit Agency| American Express Entity| Short-Term Ratings| Long-Term Ratings| Outlook|
|DBRS|All rated entities|R-1 (middle)|A (high)|Stable|
|Fitch|All rated entities|F1|A|Negative|
|Moody’s|TRS and rated operating subsidiaries(a)|Prime-1|A2|Stable|
|Moody’s|American Express Company|Prime-2|A3|Stable|
|S&P|TRS(a)|N/A|A-|Stable|
|S&P|Other rated operating subsidiaries|A-2|A-|Stable|
|S&P|American Express Company|A-2|BBB+|Stable|

(a) American Express Travel Related Services Company, Inc.

Downgrades in the ratings of our unsecured debt or asset securitization program securities could result in higher funding costs, as well as higher fees related to borrowings under our unused lines of credit.

Declines in credit ratings could also reduce our borrowing capacity in the unsecured debt and asset securitization capital markets.

We believe our funding mix, including the proportion of U. S.  retail deposits insured by the Federal Deposit Insurance Corporation (FDIC), should reduce the impact that credit rating downgrades would have on our funding capacity and costs.

SHORT-TERM FUNDING PROGRAMS Short-term borrowings, such as commercial paper, are defined as any debt with an original maturity of twelve months or less, as well as interest-bearing overdrafts with banks.

Our short-term funding programs are used primarily to meet working capital needs, such as managing seasonal variations in receivables balances.

The amount of short-term borrowings issued in the future will depend on our funding strategy, our needs and market conditions.

As of December 31, 2016, we had $3.0 billion in commercial paper outstanding and we had an average of $0.5 billion in commercial paper outstanding during 2016.

Refer to Note 9 to the “Consolidated Financial Statements” for a further description of these borrowings.

DEPOSIT PROGRAMS We offer deposits within our Centurion Bank and American Express Bank subsidiaries.

These funds are currently insured up to $250,000 per account holder through the FDIC.

Our ability to obtain deposit funding and offer competitive interest rates is dependent on the capital levels of Centurion Bank and American Express Bank.

We, through American Express Bank, have a direct retail deposit program, Personal Savings from American Express, to supplement our distribution of deposit products sourced through third-party distribution channels.

The direct retail program makes FDIC-insured certificates of deposit (CDs) and high-yield savings account products available directly to consumers.

As of December 31, 2016 we had $53.0 billion in customer deposits.

Refer to Note 8 to the “Consolidated Financial Statements” for a further description of these deposits.

LONG-TERM DEBT PROGRAMS As of December 31, 2016 we had $47.0 billion in long-term debt outstanding.

During 2016, we and our subsidiaries issued $3.8 billion of unsecured debt with maturities ranging from 3 to 5 years.

Referto Note 9 to the “Consolidated Financial Statements” for a further description of these borrowings.

Our 2016 debt issuances were as follows: TABLE 23: DEBT ISSUANCES

|(Billions)| 2016|
|American Express Credit Corporation:||
|Fixed Rate Senior Notes (weighted-average coupon of 1.65%)|$3.5|
|Floating Rate Senior Notes(3-monthLIBOR plus 57 basis points onaverage)|0.3|
|Total|$3.8|

ASSET SECURITIZATION PROGRAMS We periodically securitize Card Member loans and receivables arising from our card business, as the securitization market provides us with cost-effective funding.

Securitization of Card Member loans and receivables is accomplished through the transfer of those assets to a trust, which in turn issues securities collateralized by the transferred assets to third-party investors.

The proceeds from issuance are distributed to us, through our wholly owned subsidiaries, as consideration for the transferred assets.

NOTE 3 LOANS AND ACCOUNTS RECEIVABLE The Company’s lending and charge payment card products result in the generation of Card Member loans and Card Member receivables, respectively.

CARD MEMBER AND OTHER LOANS Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolving amounts due on lending card products, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and elect to revolve a portion of the outstanding balance by entering into a revolving payment arrangement with the Company.

These loans have a range of terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members, and in accordance with applicable regulations and the respective product’s terms and conditions.

Card Members holding revolving loans are typically required to make monthly payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges.

Card Member loans are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued interest and fees.

The Company’s policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that the Company believes will not be collected.

Card Member loans by segment and Other loans as of December 31, 2017 and 2016 consisted of:

|(Millions)|2017|2016|
|U.S. Consumer Services(a)|$53,668|$48,758|
|International Consumer and Network Services|8,651|6,971|
|Global Commercial Services|11,080|9,536|
|Card Member loans|73,399|65,265|
|Less: Reserve for losses|1,706|1,223|
|Card Member loans, net|$71,693|$64,042|
|Other loans, net(b)|$2,607|$1,419|

(a) Includes approximately $25.7 billion and $26.1 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2017 and 2016, respectively.

(b) Other loans primarily represent personal and commercial financing products.

Other loans are presented net of reserves for losses of $80 million and $42 million as of December 31, 2017 and 2016, respectively.

CARD MEMBER AND OTHER RECEIVABLES Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products.

Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns.

Additionally, global spend limits are established to limit the maximum exposure for the Company.

Charge Card Members generally must pay the full amount billed each month.

Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for losses (refer to Note 4), and include principal and any related accrued fees.

Card Member accounts receivable by segment and Other receivables as of December 31, 2017 and 2016 consisted of:

|(Millions)|2017|2016|
|U.S. Consumer Services(a)|$13,143|$12,302|
|International Consumer and Network Services|7,803|5,966|
|Global Commercial Services|33,101|29,040|
|Card Member receivables|54,047|47,308|
|Less: Reserve for losses|521|467|
|Card Member receivables, net|$53,526|$46,841|
|Other receivables, net(b)|$3,163|$3,232|

(a) Includes $8.9 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of both December 31, 2017 and 2016.

(b) Other receivables primarily represent amounts related to (i) GNS partner banks for items such as royalty and franchise fees, (ii) certain merchants for billed discount revenue, (iii) tax-related receivables, and (iv) loyalty coalition partners for points issued, as well as program participation and servicing fees.

Other receivables are presented net of reserves for losses of $31 million and $45 million as of December 31, 2017 and 2016, respectively.

Stock Performance Graph The following graph sets forth the cumulative total shareholder return on our Series A common stock, Series B common stock and Series C common stock as compared with the cumulative total return of the companies listed in the Standard and Poor’s 500 Stock Index (“S&P 500 Index”) and a peer group of companies comprised of CBS Corporation Class B common stock, Scripps Network Interactive, Inc.  (acquired by the Company in March 2018), Time Warner, Inc.  (acquired by AT&T Inc.  in June 2018), Twenty-First Century Fox, Inc.  Class A common stock (News Corporation Class A Common Stock prior to June 2013), Viacom, Inc.  Class B common stock and The Walt Disney Company.

The graph assumes $100 originally invested on December 31, 2013 in each of our Series A common stock, Series B common stock and Series C common stock, the S&P 500 Index, and the stock of our peer group companies, including reinvestment of dividends, for the years ended December 31, 2014, 2015, 2016, 2017 and 2018.

Two peer companies, Scripps Networks Interactive, Inc.  and Time Warner, Inc. , were acquired in 2018.

The stock performance chart shows the peer group including Scripps Networks Interactive, Inc.  and Time Warner, Inc.  and excluding both acquired companies for the entire five year period.

Equity Compensation Plan Information Information regarding securities authorized for issuance under equity compensation plans will be set forth in our definitive Proxy Statement for our 2019 Annual Meeting of Stockholders under the caption “Securities Authorized for Issuance Under Equity Compensation Plans,” which is incorporated herein by reference.


Question: what is the percentage change in research and development expense from 2015 to 2016?

def solution():
    # Define variables name and value
    r_and_d_expense_2015 = 119
    r_and_d_expense_2016 = 78

    # Do math calculation to get the answer
    difference = r_and_d_expense_2016 - r_and_d_expense_2015
    percentage_change = (difference / r_and_d_expense_2015) * 100

    return percentage_change

Table of Contents 16 Other Equity Method Investments InfraServs.

We hold indirect ownership interests in several German InfraServ Groups that own and develop industrial parks and provide on-site general and administrative support to tenants.

Our ownership interest in the equity investments in InfraServ affiliates are as follows:

||As of December 31, 2017 (In percentages)|
|InfraServ GmbH & Co. Gendorf KG-1|39|
|InfraServ GmbH & Co. Hoechst KG|32|
|InfraServ GmbH & Co. Knapsack KG-1|27|

(1) See Note 29 - Subsequent Events in the accompanying consolidated financial statements for further information.

Research and Development Our business models leverage innovation and conduct research and development activities to develop new, and optimize existing, production technologies, as well as to develop commercially viable new products and applications.

Research and development expense was $72 million, $78 million and $119 million for the years ended December 31, 2017, 2016 and 2015, respectively.

We consider the amounts spent during each of the last three fiscal years on research and development activities to be sufficient to execute our current strategic initiatives.

Intellectual Property We attach importance to protecting our intellectual property, including safeguarding our confidential information and through our patents, trademarks and copyrights, in order to preserve our investment in research and development, manufacturing and marketing.

Patents may cover processes, equipment, products, intermediate products and product uses.

We also seek to register trademarks as a means of protecting the brand names of our Company and products.

In most industrial countries, patent protection exists for new substances and formulations, as well as for certain unique applications and production processes.

However, we do business in regions of the world where intellectual property protection may be limited and difficult to enforce.

We maintain stringent information security policies and procedures wherever we do business.

Such information security policies and procedures include data encryption, controls over the disclosure and safekeeping of confidential information and trade secrets, as well as employee awareness training.

and certain other branded products and services named in this document are registered or reserved trademarks or service marks owned or licensed by Celanese.

The foregoing is not intended to be an exhaustive or comprehensive list of all registered or reserved trademarks and service marks owned or licensed by Celanese.

is a registered trademark of Fortron Industries LLC.

is a registered trademark of Hoechst GmbH.

are registered trademarks of Celanese in most European countries.

We monitor competitive developments and defend against infringements on our intellectual property rights.

Neither Celanese nor any particular business segment is materially dependent upon any one patent, trademark, copyright or trade secret.

Environmental and Other Regulation Matters pertaining to environmental and other regulations are discussed in Item 1A.

Risk Factors, as well as Note 2 - Summary of Accounting Policies, Note 16 - Environmental and Note 24 - Commitments and Contingencies in the accompanying consolidated financial statements.

NOTE 7 - BANK LOANS, NET: Bank client receivables are comprised of loans originated or purchased by RJ Bank and include commercial and residential real estate loans, as well as commercial and consumer loans.

These receivables are collateralized by first or second mortgages on residential or other real property, by other assets of the borrower or are unsecured.

The following table presents the balance and associated percentage of each major loan category in RJ Bank's portfolio, including loans receivable and loans available for sale:

(1) Of this amount, $1.2 billion, $1.2 billion, $687 million, $393 million and $137 million is secured by non-owner occupied commercial real estate properties or their repayment is dependent upon the operation or sale of commercial real estate properties as of September 30, 2009, 2008, 2007, 2006 and 2005, respectively.

The remainder is wholly or partially secured by real estate, the majority of which is also secured by other assets of the borrower.

(2) Includes purchase premiums, purchase discounts, and net deferred origination fees and costs.

At September 30, 2009 and September 30, 2008, RJ Bank had $950 million and $1.7 billion, respectively, in FHLB advances secured by a blanket lien on RJ Bank's residential mortgage loan portfolio.

See Note 11 for more information regarding the FHLB advances.

At September 30, 2009 and 2008, RJ Bank had $40.5 million and $524,000 in loans held for sale, respectively.

RJ Bank's gain from the sale of these loans held for sale was $676,000, $364,000 and $518,000 for the years ended September 30, 2009, 2008 and 2007, respectively

business conducted annually with each institution.

Fixed income commissions are based on trade size and the characteristics of the specific security involved.

Capital Markets Commissions For the Fiscal Years Ended:

Approximately 100 domestic and overseas professionals in RJ&A's Institutional Equity Sales and Sales Trading Departments maintain relationships with over 1,190 institutional clients, principally in North America and Europe.

In addition to our headquarters in St.  Petersburg, Florida, RJ&A has institutional equity sales offices in New York City, Boston, Chicago, Los Angeles, San Francisco, London, Geneva, Brussels, Dusseldorf, Luxembourg and Paris.

European offices also provide services to high net worth clients.

RJ Ltd.  has 33 institutional equity sales and trading professionals servicing predominantly Canadian institutional investors from offices in Montreal, Toronto and Vancouver.

RJ&A distributes to institutional clients both taxable and tax-exempt fixed income products, primarily municipal, corporate, government agency and mortgage-backed bonds.

RJ&A carries inventory positions of taxable and tax-exempt securities in both the primary and secondary markets to facilitate institutional sales activities.

In addition to St.  Petersburg, the Fixed Income Department maintains institutional sales and trading offices in New York City, Chicago and 20 other cities throughout the U. S.  Trading Trading equity securities involves the purchase and sale of securities from/to our clients or other dealers.

Profits and losses are derived from the spreads between bid and asked prices, as well as market trends for the individual securities during the period we hold them.

RJ&A makes markets in approximately 680 common stocks.

Similar to the equity research department, this operation serves to support both our Institutional and Private Client Group sales efforts.

The RJ Ltd.  Institutional and Private Client Group trading desks not only support client activity, but also take proprietary positions.

RJ Ltd.  also provides specialist services in approximately 160 TSX listed common stocks.

RJ&A trades both taxable and tax-exempt fixed income products.

The taxable and tax-exempt RJ&A fixed income traders purchase and sell corporate, municipal, government, government agency, and mortgage-backed bonds, asset backed securities, preferred stock and certificates of deposit from/to our clients or other dealers.

RJ&A enters into future commitments such as forward contracts and “to be announced” securities (e. g.  securities having a stated coupon and original term to maturity, although the issuer and/or the specific pool of mortgage loans is not known at the time of the transaction).

Low levels of proprietary trading positions are also periodically taken by RJ&A for various purposes and are closely monitored within well defined limits.

In addition, a subsidiary of RJF, RJ Capital Services Inc. , participates in the interest rate swaps market as a principal, both for economically hedging RJ&A fixed income inventory and for transactions with customers.

Equity Research The domestic senior analysts in RJ&A's research department support our institutional and retail sales efforts and publish research on approximately 725 companies.

This research primarily focuses on U. S.  companies in specific industries including technology, telecommunications, consumer, financial services, business and industrial services, healthcare, real estate and energy.

Proprietary industry studies and company-specific research reports are made available to both institutional and individual clients.

RJ Ltd.  has an additional 16 analysts who publish research on approximately 200 companies focused in the energy, energy services, mining, forest products, biotechnology, technology, clean technology, consumer and industrial products, REIT and income trust sectors.

These analysts, combined with 12 additional analysts located in France (whose services are obtained through a joint venture there), represent our global research effort within the Capital Markets segment.

The following table shows the distribution of those RJ Bank loans that mature in more than one year between fixed and adjustable interest rate loans at September 30, 2009:


Question: What's the total value of all net income for before consolidation that are in the range of 10 and 600 in 2010? (in million)

def solution():
    # Define variables name and value
    value1 = 10.4
    value2 = 40.8
    value3 = 15.6

    # Do math calculation to get the answer
    answer = value1 + value2 + value3

    return answer

Item 2: Properties Information concerning Applied’s properties is set forth below:

|(Square feet in thousands)|United States|Other Countries|Total|
|Owned|4,530|2,417|6,947|
|Leased|1,037|1,341|2,378|
|Total|5,567|3,758|9,325|

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.

Cash flows for the years ended December 31, 2009, 2008 and 2007 are summarized as follows:

| $ in millions| 2009| 2008| 2007|
|Net cash (used in)/provided by:||||
|Operating activities|362.7|525.5|915.5|
|Investing activities|-102.4|-98.4|-48.2|
|Financing activities|-100.7|-666.4|-740.8|
|Increase/(decrease) in cash and cash equivalents|159.6|-239.3|126.5|
|Foreign exchange|17.2|-91.3|10.4|
|Cash and cash equivalents, beginning of period|585.2|915.8|778.9|
|Cash and cash equivalents, end of period|762.0|585.2|915.8|

Operating Activities Net cash provided by operating activities is generated by the receipt of investment management and other fees generated from AUM, offset by operating expenses and changes in operating assets and liabilities.

Although some receipts and payments are seasonal, particularly bonus payments, in general our operating cash flows move in the same direction as our operating income.

The reduced operating income for the year ended December 31, 2009, when compared to the prior year is a significant factor in the reduced operating cash flows.

Cash provided by operating activities in 2009 was $362.7 million, a decrease of $162.8 million or 31% over 2008.

Changes in operating assets and liabilities used $118.3 million of cash, while the combined cash generated from other operating items was $481.0 million.

The change in operating assets and liabilities was driven by the funding of annual bonuses combined with the lower levels of accrued bonus awards at the end of 2009, together with higher trade receivables at the end of 2009, compared to the end of 2008.

The change in operating assets and liabilities also includes a decrease of $45.0 million in the cash held by consolidated investment products.

Cash provided by operating activities in 2008 was $525.5 million, a decrease of $390.0 million or 42.6% from 2007.

Changes in operating assets and liabilities contributed $273.9 million of the decrease, and lower net income, after adjusting for the gains and losses of consolidated investment products, contributed a further $193.2 million of the decrease in cash flows generated from operating activities.

Investing Activities The launch of a number of new products during mid and late 2009 resulted in a net cash outflow into seed and partnership investments of $43.5 million during the year.

During year ended December 31, 2009, we recaptured $60.6 million in cash from redemption of prior investments, including seed and partnership investments, and invested $104.1 million in new products.

During the fiscal years ended December 31, 2009, 2008 and 2007, our capital expenditures were $39.5 million, $84.1 million and $36.7 million, respectively.

Expenditures related principally in each year to technology initiatives, including new platforms from which we maintain our portfolio management systems and fund accounting systems, improvements in computer hardware and software desktop products for employees, new telecommunications products to enhance our internal information flow, and back-up disaster recovery systems.

Also, in each year, a portion of these costs related to leasehold improvements made to the various buildings and workspaces used in our offices.

These projects have been funded with proceeds from our operating cash flows.

Capital expenditures in 2008 also included expenditures related to leasehold improvements in the new headquarters space.

During the fiscal years ended December 31, 2009, 2008 and 2007, our capital divestitures were not significant relative to our total fixed assets.

Investing activities include the investment purchases and sales of our consolidated investment products.

In total, these contributed $8.0 million, $175.6 million and $8.1 million to cash generated in investing activities during the years ended December 31, 2009, 2008, and 2007, respectively.

Net cash outflows of $34.2 million in 2009 related to acquisition earn-out payments related to the 2006 acquisition of WL Ross & Co.

In 2008, net cash outflows of $130.9 million and $43.4 million related to acquisition earn-out payments for the PowerShares and WL Ross & Co.  acquisitions, respectively.

Results of Operations for the Year Ended December 31, 2010, compared with the Year Ended December 31, 2009 Condensed Consolidating Statements of Income

|$ in millions|Before Consolidation-1|Consolidated Investment Products-2|Adjustments-1(3)|Total|
|Year ended December 31, 2010|||||
|Total operating revenues|3,532.7|0.3|-45.3|3,487.7|
|Total operating expenses|2,887.8|55.3|-45.3|2,897.8|
|Operating income|644.9|-55.0|—|589.9|
|Equity in earnings of unconsolidated affiliates|40.8|—|-0.6|40.2|
|Interest and dividend income|10.4|246.0|-5.1|251.3|
|Other investment income/(losses)|15.6|107.6|6.4|129.6|
|Interest expense|-58.6|-123.7|5.1|-177.2|
|Income before income taxes|653.1|174.9|5.8|833.8|
|Income tax provision|-197.0|—|—|-197.0|
|Net income|456.1|174.9|5.8|636.8|
|(Gains)/losses attributable to noncontrolling interests in consolidated entities, net|-0.2|-170.8|-0.1|-171.1|
|Net income attributable to common shareholders|455.9|4.1|5.7|465.7|

|$ in millions|Before Consolidation|Consolidated Investment Products-2|Adjustments-3|Total|
|Year ended December 31, 2009|||||
|Total operating revenues|2,633.3|1.9|-7.9|2,627.3|
|Total operating expenses|-2,139.5|-11.4|7.9|-2,143.0|
|Operating income|493.8|-9.5|—|484.3|
|Equity in earnings of unconsolidated affiliates|24.5|—|2.5|27.0|
|Interest and dividend income|9.8|—|—|9.8|
|Other investment income/(losses)|7.8|-106.9|—|-99.1|
|Interest expense|-64.5|—|—|-64.5|
|Income before income taxes|471.4|-116.4|2.5|357.5|
|Income tax provision|-148.2|—|—|-148.2|
|Net income|323.2|-116.4|2.5|209.3|
|(Gains)/losses attributable to noncontrolling interests in consolidated entities, net|-0.7|113.9|—|113.2|
|Net income attributable to common shareholders|322.5|-2.5|2.5|322.5|

(1) The Before Consolidation column includes Invesco's equity interests in the investment products accounted for as equity method (private equity and real estate partnership funds) and available-for-sale investments (CLOs).

Upon consolidation of the CLOs, the company's and the CLOs' accounting policies are effectively aligned, resulting in the reclassification of the company's gain for the year ended December 31, 2010 of $6.4 million (representing the increase in the market value of the company's holding in the consolidated CLOs) from other comprehensive income into other gains/losses.

The company's gain on its investment in the CLOs (before consolidation) eliminates with the company's share of the offsetting loss on the CLOs' debt.

The net income arising from consolidation of CLOs is therefore completely attributed to other investors in these CLOs, as the company's share has been eliminated through consolidation.

The Before Consolidation column does not include any other adjustments related to non-GAAP financial measure presentation.

(2) The company adopted guidance now encompassed in ASC Topic 810 on January 1, 2010 resulting in the consolidation of certain CLOs.

In accordance with the standard, prior periods have not been restated to reflect the consolidation of these CLOs.

Prior to January 1, 2010, the company was not deemed to be the primary beneficiary of these CLOs.

(3) Adjustments include the elimination of intercompany transactions between the company and its consolidated investment products, primarily the elimination of management fees expensed by the funds and recorded as operating revenues (before consolidation) by the company.


Question: In the year with largest amount of Fair Value for Aaa, what's the growing rate of Fair Value for Aa?

def solution():
    # Define variables name and value
    Aa_fair_value_2007 = 383
    Aa_fair_value_2008 = 197

    # Do math calculation to get the answer
    answer = (Aa_fair_value_2008 - Aa_fair_value_2007) / Aa_fair_value_2007 * 100

    return answer

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 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.

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:

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.

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:

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.

|Millions of Dollars|2009|2008|2007|
|Cash provided by operating activities|$3,234|$4,070|$3,277|
|Cash used in investing activities|-2,175|-2,764|-2,426|
|Cash used in financing activities|-458|-935|-800|
|Net change in cash and cash equivalents|$601|$371|$51|

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.


Question: In the year with largest amount of Office Net Charge-offs in table 3, what's the increasing rate of Office Net Charge-offs in table 3?

def solution():
    # Define variables name and value
    office_net_charge_offs_2011 = 126
    office_net_charge_offs_2010 = 273

    # Do math calculation to get the answer
    difference = office_net_charge_offs_2010 - office_net_charge_offs_2011
    answer = (difference / office_net_charge_offs_2010) * 100

    return answer

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The following table presents reported quarterly high and low per share sale prices of our common stock on the NYSE for the years 2015 and 2014.

|2015|High|Low|
|Quarter ended March 31|$101.88|$93.21|
|Quarter ended June 30|98.64|91.99|
|Quarter ended September 30|101.54|86.83|
|Quarter ended December 31|104.12|87.23|
|2014|High|Low|
|Quarter ended March 31|$84.90|$78.38|
|Quarter ended June 30|90.73|80.10|
|Quarter ended September 30|99.90|89.05|
|Quarter ended December 31|106.31|90.20|

On February 19, 2016, the closing price of our common stock was $87.32 per share as reported on the NYSE.

As of February 19, 2016, we had 423,897,556 outstanding shares of common stock and 159 registered holders.

Dividends As a REIT, we must annually distribute to our stockholders an amount equal to at least 90% of our REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain).

Generally, we have distributed and expect to continue to distribute all or substantially all of our REIT taxable income after taking into consideration our utilization of net operating losses (“NOLs”).

We have two series of preferred stock outstanding, 5.25% Mandatory Convertible Preferred Stock, Series A, issued in May 2014 (the “Series A Preferred Stock”), with a dividend rate of 5.25%, and the 5.50% Mandatory Convertible Preferred Stock, Series B (the “Series B Preferred Stock”), issued in March 2015, with a dividend rate of 5.50%.

Dividends are payable quarterly in arrears, subject to declaration by our Board of Directors.

The amount, timing and frequency of future distributions will be at the sole discretion of our Board of Directors and will be dependent upon various factors, a number of which may be beyond our control, including our financial condition and operating cash flows, the amount required to maintain our qualification for taxation as a REIT and reduce any income and excise taxes that we otherwise would be required to pay, limitations on distributions in our existing and future debt and preferred equity instruments, our ability to utilize NOLs to offset our distribution requirements, limitations on our ability to fund distributions using cash generated through our TRSs and other factors that our Board of Directors may deem relevant.

We have distributed an aggregate of approximately $2.3 billion to our common stockholders, including the dividend paid in January 2016, primarily subject to taxation as ordinary income.

During the year ended December 31, 2015, we declared the following cash distributions:

S.  exposure was $232.6 billion at December 31, 2011, a decrease of $29.4 billion from December 31, 2010.

S.  exposure remained concentrated in Europe which accounted for $115.9 billion, or 50 percent, of total non-U.

The European exposure was mostly in Western Europe and was distributed across a variety of industries.

The decrease of $32.2 billion in Europe was primarily driven by our efforts to reduce risk in countries affected by the ongoing debt crisis in the Eurozone.

Select European countries are further detailed in Table 54.

Asia Pacific was our second largest non-U.

S.  exposure at $74.6 billion, or 32 percent.

The $1.3 billion increase in Asia Pacific was driven by increases in securities and local exposure in Japan and increases in the emerging markets, predominately in local exposure, loans and securities offset by the sale of CCB shares.

For more information on our CCB investment, see Note 5 – Securities to the Consolidated Financial Statements.

Latin America accounted for $17.4 billion, or seven percent, of total non-U.

The $2.6 billion increase in Latin America was primarily driven by an increase in Brazil in securities and local country exposure.

Middle East and Africa increased $926 million to $4.6 billion, representing two percent of total non-U.

S.  exposure was $20.1 billion at December 31, 2011, a decrease of $2.1 billion in 2011 resulting primarily from a decrease in local exposure as a result of the sale of our Canadian consumer card business.

For more information on our Asia Pacific and Latin America exposure, see non-U.

S.  exposure to selected countries defined as emerging markets on page 100.

Table 52 presents countries where total cross-border exposure exceeded one percent of our total assets.

At December 31, 2011, the United Kingdom and Japan were the only countries where total cross-border exposure exceeded one percent of our total assets.

At December 31, 2011, Canada and France had total cross-border exposure of $16.9 billion and $16.1 billion representing 0.79 percent and 0.75 percent of total assets.

Canada and France were the only other countries that had total cross-border exposure that exceeded 0.75 percent of our total assets at December 31, 2011.

Exposure includes cross-border claims by our non-U.

S.  offices including loans, acceptances, time deposits placed, trading account assets, securities, derivative assets, other interestearning investments and other monetary assets.

Amounts also include unused commitments, SBLCs, commercial letters of credit and formal guarantees.

Sector definitions are consistent with FFIEC reporting requirements for preparing the Country Exposure Report.

|Table 52|Total Cross-border Exposure Exceeding One Percent of Total Assets-1|
|(Dollars in millions)|December 31|Public Sector|Banks|Private Sector|Cross-borderExposure|Exposure as aPercentage ofTotal Assets|
|United Kingdom|2011|$6,401|$4,424|$18,056|$28,881|1.36%|
||2010|101|5,544|32,354|37,999|1.68|
|Japan-2|2011|4,603|10,383|8,060|23,046|1.08|

(1) Total cross-border exposure for the United Kingdom and Japan included derivatives exposure of $5.9 billion and $3.5 billion at December 31, 2011 and $2.3 billion and $2.8 billion at December 31, 2010 which has been reduced by the amount of cash collateral applied of $9.3 billion and $1.2 billion at December 31, 2011 and $13.0 billion and $1.6 billion at December 31, 2010.

Derivative assets were collateralized by other marketable securities of $242 million and $1.7 billion at December 31, 2011 and $96 million and $743 million at December 31, 2010.

(2) At December 31, 2010, total cross-border exposure for Japan was $17.0 billion, representing 0.75 percent of total assets.

Tables 43 and 44 present commercial real estate credit quality data by non-homebuilder and homebuilder property types.

The homebuilder portfolio presented in Tables 42, 43 and 44 includes condominiums and other residential real estate.

Other property types in Tables 42, 43 and 44 primarily include special purpose, nursing/retirement homes, medical facilities and restaurants, as well as unsecured loans to borrowers whose primary business is commercial real estate.

Table 43 Commercial Real Estate Credit Quality Data

|Table 43|Commercial Real Estate Credit Quality Data December 31|
||Nonperforming Loans andForeclosed Properties-1|Utilized ReservableCriticized Exposure-2|
|(Dollars in millions)|2011|2010|2011|2010|
|Non-homebuilder|||||
|Office|$807|$1,061|$2,375|$3,956|
|Multi-family rental|339|500|1,604|2,940|
|Shopping centers/retail|561|1,000|1,378|2,837|
|Industrial/warehouse|521|420|1,317|1,878|
|Multi-use|345|483|971|1,316|
|Hotels/motels|173|139|716|1,191|
|Land and land development|530|820|749|1,420|
|Other|223|168|997|1,604|
|Total non-homebuilder|3,499|4,591|10,107|17,142|
|Homebuilder|993|1,963|1,418|3,376|
|Total commercial real estate|$4,492|$6,554|$11,525|$20,518|

Table 44 Commercial Real Estate Net Charge-offs and Related Ratios

|Table 44|Commercial Real Estate Net Charge-offs and Related Ratios|
||Net Charge-offs|Net Charge-off Ratios-1|
|(Dollars in millions)|2011|2010|2011|2010|
|Non-homebuilder|||||
|Office|$126|$273|1.51%|2.49%|
|Multi-family rental|36|116|0.52|1.21|
|Shopping centers/retail|184|318|2.69|3.56|
|Industrial/warehouse|88|59|1.94|1.07|
|Multi-use|61|143|1.63|2.92|
|Hotels/motels|23|45|0.86|1.02|
|Land and land development|152|377|7.58|13.04|
|Other|19|220|0.33|3.14|
|Total non-homebuilder|689|1,551|1.67|2.86|
|Homebuilder|258|466|8.00|8.26|
|Total commercial real estate|$947|$2,017|2.13|3.37|

(1) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.

At December 31, 2011, total committed non-homebuilder exposure was $53.1 billion compared to $64.2 billion at December 31, 2010, with the decrease due to exposure reductions in all non-homebuilder property types.

Non-homebuilder nonperforming loans and foreclosed properties were $3.5 billion and $4.6 billion at December 31, 2011 and 2010, which represented 9.29 percent and 10.08 percent of total nonhomebuilder loans and foreclosed properties.

Non-homebuilder utilized reservable criticized exposure decreased to $10.1 billion, or 25.34 percent of non-homebuilder utilized reservable exposure, at December 31, 2011 compared to $17.1 billion, or 35.55 percent, at December 31, 2010.

The decrease in reservable criticized exposure was driven primarily by office, shopping centers/retail and multi-family rental property types.

For the nonhomebuilder portfolio, net charge-offs decreased $862 million in 2011 due in part to resolution of criticized assets through payoffs and sales.

At December 31, 2011, we had committed homebuilder exposure of $3.9 billion compared to $6.0 billion at December 31, 2010, of which $2.4 billion and $4.3 billion were funded secured loans.

The decline in homebuilder committed exposure was due to repayments, net charge-offs, reductions in new home construction and continued risk mitigation initiatives with market conditions providing fewer origination opportunities to offset the reductions.

Homebuilder nonperforming loans and foreclosed properties decreased $970 million due to repayments, a decline in the volume of loans being downgraded to nonaccrual status and net charge-offs.

Homebuilder utilized reservable criticized exposure decreased $2.0 billion to $1.4 billion due to repayments and net charge-offs.

The nonperforming loans, leases and foreclosed properties and the utilized reservable criticized ratios for the homebuilder portfolio were 38.89 percent and 54.65 percent at December 31, 2011 compared to 42.80 percent and 74.27 percent at December 31, 2010.

Net charge-offs for the homebuilder portfolio decreased $208 million in 2011.

Capital Management During 2015, we repurchased approximately $2.4 billion of common stock, with an average price of $16.92 per share, in connection with our 2015 Comprehensive Capital Analysis and Review (CCAR) capital plan, which included a request to repurchase $4.0 billion of common stock over five quarters beginning in the second quarter of 2015, and to maintain the quarterly common stock dividend at the current rate of $0.05 per share.

Based on the conditional non-objection we received from the Federal Reserve on our 2015 CCAR submission, we were required to resubmit our CCAR capital plan by September 30, 2015 and address certain weaknesses the Federal Reserve identified in our capital planning process.

We have established plans and taken actions which addressed the identified weaknesses, and we resubmitted our CCAR capital plan on September 30, 2015.

The Federal Reserve announced that it did not object to our resubmitted CCAR capital plan on December 10, 2015.

As an Advanced approaches institution, under Basel 3, we were required to complete a qualification period (parallel run) to demonstrate compliance with the Basel 3 Advanced approaches capital framework to the satisfaction of U. S.  banking regulators.

We received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015.

As previously disclosed, with the approval to exit parallel run, U. S.  banking regulators requested modifications to certain internal analytical models including the wholesale (e. g. , commercial) credit models.

All requested modifications were incorporated, which increased our risk-weighted assets, and are reflected in the risk-based ratios in the fourth quarter of 2015.

Having exited parallel run on October 1, 2015, we are required to report regulatory risk-based capital ratios and risk-weighted assets under both the Standardized and Advanced approaches.

The approach that yields the lower ratio is used to assess capital adequacy including under the Prompt Corrective Action (PCA) framework and was the Advanced approaches in the fourth quarter of 2015.

For additional information, see Capital Management on page 51.

Trust Preferred Securities On December 29, 2015, the Corporation provided notice of the redemption on January 29, 2016 of all trust preferred securities of Merrill Lynch Preferred Capital Trust III, Merrill Lynch Preferred Capital Trust IV and Merrill Lynch Preferred Capital Trust V (the Trust Preferred Securities).

In connection with the Corporation’s acquisition of Merrill Lynch & Co. , Inc.  in 2009, the Corporation recorded a discount to par value as purchase accounting adjustments associated with the Trust Preferred Securities.

The Corporation recorded a $612 million charge to net interest income related to the discount on these securities.

New Accounting Guidance on Recognition and Measurement of Financial Instruments In January 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance on recognition and measurement of financial instruments.

The Corporation has early adopted, retrospective to January 1, 2015, the provision that requires the Corporation to present unrealized gains and losses resulting from changes in the Corporation’s own credit spreads on liabilities accounted for under the fair value option (referred to as debit valuation adjustments, or DVA) in accumulated other comprehensive income (OCI).

The impact of the adoption was to reclassify, as of January 1, 2015, unrealized DVA losses of $2.0 billion pretax ($1.2 billion after tax) from retained earnings to accumulated OCI.

Further, pretax unrealized DVA gains of $301 million, $301 million and $420 million were reclassified from other income to accumulated OCI for the third, second and first quarters of 2015, respectively.

This had the effect of reducing net income as previously reported for the aforementioned quarters by $187 million, $186 million and $260 million, or approximately $0.02 per share in each quarter.

This change is reflected in consolidated results and the Global Markets segment results.

Results for 2014 were not subject to restatement under the provisions of the new accounting guidance.

Selected Financial Data Table 1 provides selected consolidated financial data for 2015 and 2014.


Question: what was the percentage change in research and development net from 2011 to 2012?

def solution():
    # Define variables name and value
    net_research_2012 = 453
    net_research_2011 = 428

    # Do math calculation to get the answer
    difference = net_research_2012 - net_research_2011
    percentage_change = (difference / net_research_2011) * 100

    return percentage_change

The results from discontinued operations for our former Digital Television business unit were as follows:

||2009|2008|
||(In millions)|
|Net revenue|$—|$73|
|Expenses|-3|-147|
|Impairment of goodwill and acquired intangible assets|—|-609|
|Restructuring charges|—|-1|
|Loss from discontinued operations|$-3|$-684|

Recently Adopted Accounting Standards Noncontrolling Interest.

In June 2009, the FASB issued guidance that amends the evaluation criteria to identify the primary beneficiary of a variable interest entity.

Additionally, this guidance requires ongoing reassessments of whether an enterprise is the primary beneficiary of the variable interest entity.

This guidance became effective for interim and annual reporting periods after November 15, 2009.

We adopted this new guidance as of the beginning of 2010, and we applied such guidance in evaluating whether we could deconsolidate GF given the changes in governance over the operations of GF that occurred effective December 28, 2009.

See Note 3 of Notes to Consolidated Financial Statements for additional information.

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Interest Rate Risk.

Our exposure to market risk for changes in interest rates relates primarily to our investment portfolio and long-term debt.

We usually invest our cash in investments with short maturities or with frequent interest reset terms.

Accordingly, our interest income fluctuates with short-term market conditions.

As of December 25, 2010, our investment portfolio consisted primarily of time deposits, money market funds, commercial paper and ARS.

With the exception of our ARS, these investments were highly liquid.

Due to the short-term nature of our investment portfolio and the current low interest rate environment, our exposure to interest rate risk is minimal.

As of December 25, 2010, all of our outstanding debt is fixed interest rate debt.

Consequently, our exposure to market risk for changes in interest rates on reported interest expense and corresponding cash flows is minimal.

We will continue to monitor our exposure to interest rate risk.

We mitigate default risk in our investment portfolio by investing in only the highest credit quality securities and by constantly positioning our portfolio to respond appropriately to a significant reduction in a credit rating of any investment issuer or guarantor.

Our portfolio includes investments in debt and marketable equity securities with active secondary or resale markets to ensure portfolio liquidity.

We are averse to principal loss and strive to preserve our invested funds by limiting default risk and market risk.

We actively monitor market conditions and developments specific to the securities and security classes in which we invest.

We believe that we take a conservative approach to investing our funds in that we invest only in highly-rated debt securities with relatively short maturities and do not invest in securities we believe involve a higher degree of risk.

As of December 25, 2010, substantially all of our investments in debt securities were AAA rated by at least one of the rating agencies.

While we believe we take prudent measures to mitigate investment related risks, such risks cannot be fully eliminated as there are circumstances outside of our control.

We believe the current credit market difficulties do not have a material impact on our financial position.

However, a future degradation in credit market conditions could have a material adverse effect on our financial position.

As a result of the uncertainties in the credit markets, all of our ARS were negatively affected and auctions for these securities failed to settle on their respective settlement dates.

The table below provides information about the fair value carrying amount and the contractual principal outstanding of assets or liabilities accounted for under the fair value option at December 31, 2010 and 2009.

||December 31|
||2010|2009|
||||Fair Value|||Fair Value|
||||Carrying|||Carrying|
|| Fair Value | Contractual |Amount|Fair Value |Contractual |Amount|
|| Carrying | Principal |Less Unpaid|Carrying |Principal |Less Unpaid|
|(Dollars in millions)| Amount| Outstanding|Principal|Amount|Outstanding|Principal|
|Corporate loans and loan commitments-1|$4,135|$3,638|$497|$5,865|$5,460|$405|
|Loansheld-for-sale|25,942|28,370|-2,428|32,795|36,522|-3,727|
|Securities financing agreements|116,023|115,053|970|95,100|94,641|459|
|Other assets|310|n/a|n/a|253|n/a|n/a|
|Long-term deposits|2,732|2,692|40|1,663|1,605|58|
|Asset-backed secured financings|706|1,356|-650|707|1,451|-744|
|Commercial paper and other short-term borrowings|6,472|6,472|–|813|813|–|
|Long-term debt|50,984|54,656|-3,672|45,451|48,560|-3,109|

(1) Includes unfunded loan commitments with an aggregate fair value of $866 million and $950 million and aggregated committed exposure of $27.3 billion and $27.0 billion at December 31, 2010 and 2009, respectively.

n/a = not applicable The tables below provide information about where changes in the fair value of assets or liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for 2010, 2009 and 2008.

Gains (Losses) Relating to Assets and Liabilities Accounted for Under the Fair Value Option

||2010|
|(Dollars in millions)|Trading Account Profits (Losses)|Mortgage Banking Income (Loss)|Equity Investment Income (Loss)|Other Income (Loss)|Total|
|Corporate loans and loan commitments|$2|$–|$–|$105|$107|
|Loansheld-for-sale|–|9,091|–|493|9,584|
|Securities financing agreements|–|–|–|52|52|
|Other assets|–|–|–|107|107|
|Long-term deposits|–|–|–|-48|-48|
|Asset-backed secured financings|–|-95|–|–|-95|
|Commercial paper and other short-term borrowings|-192|–|–|–|-192|
|Long-term debt|-625|–|–|22|-603|
| Total|$-815|$8,996|$–|$731|$8,912|
||2009|
|Corporate loans and loan commitments|$25|$–|$–|$1,886|$1,911|
|Loansheld-for-sale|-211|8,251|–|588|8,628|
|Securities financing agreements|–|–|–|-292|-292|
|Other assets|379|–|-177|–|202|
|Long-term deposits|–|–|–|35|35|
|Asset-backed secured financings|–|-11|–|–|-11|
|Commercial paper and other short-term borrowings|-236|–|–|–|-236|
|Long-term debt|-3,938|–|–|-4,900|-8,838|
|Total|$-3,981|$8,240|$-177|$-2,683|$1,399|
||2008|
|Corporate loans and loan commitments|$4|$–|$–|$-1,248|$-1,244|
|Loansheld-for-sale|-680|281|–|-215|-614|
|Securities financing agreements|–|–|–|-18|-18|
|Long-term deposits|–|–|–|-10|-10|
|Asset-backed secured financings|–|295|–|–|295|
|Total|$-676|$576|$–|$-1,491|$-1,591|

Notes to the Consolidated Financial Statements 1.

Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of PPG Industries, Inc.  (“PPG” or the “Company”) and all subsidiaries, both U. S.  and non-U.

PPG owns more than 50% of the voting stock of most of the subsidiaries that it controls.

For those consolidated subsidiaries in which the Company’s ownership is less than 100%, the outside shareholders’ interests are shown as noncontrolling interests.

Investments in companies in which PPG owns 20% to 50% of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting.

As a result, PPG’s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statement of income and PPG’s share of these companies’ shareholders’ equity is included in "Investments" in the accompanying consolidated balance sheet.

Transactions between PPG and its subsidiaries are eliminated in consolidation.

Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with U. S.  generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period.

Such estimates also include the fair value of assets acquired and liabilities assumed as a result of allocations of purchase price of business combinations consummated.

Actual outcomes could differ from those estimates.

Revenue Recognition The Company recognizes revenue when the earnings process is complete.

Revenue from sales is recognized by all operating segments when goods are shipped and title to inventory and risk of loss passes to the customer or when services have been rendered.

Shipping and Handling Costs Amounts billed to customers for shipping and handling are reported in “Net sales” in the accompanying consolidated statement of income.

Shipping and handling costs incurred by the Company for the delivery of goods to customers are included in “Cost of sales, exclusive of depreciation and amortization” in the accompanying consolidated statement of income.

Selling, General and Administrative Costs Amounts presented as “Selling, general and administrative” in the accompanying consolidated statement of income are comprised of selling, customer service, distribution and advertising costs, as well as the costs of providing corporatewide functional support in such areas as finance, law, human resources and planning.

Distribution costs pertain to the movement and storage of finished goods inventory at company owned and leased warehouses, terminals and other distribution facilities.

Advertising Costs Advertising costs are expensed in the year incurred and totaled $345 million, $288 million and $245 million in 2013, 2012 and 2011, respectively.

Research and Development Research and development costs, which consist primarily of employee related costs, are charged to expense as incurred.

The following are the research and development costs for the years ended December 31:

|(Millions)|2013|2012|2011|
|Research and development – total|$505|$468|$443|
|Less depreciation on research facilities|17|15|15|
|Research and development, net|$488|$453|$428|

Legal Costs Legal costs are expensed as incurred.

Legal costs incurred by PPG include legal costs associated with acquisition and divestiture transactions, general litigation, environmental regulation compliance, patent and trademark protection and other general corporate purposes.

Foreign Currency Translation The functional currency of most significant non-U.

Assets and liabilities of those operations are translated into U. S.  dollars using year-end exchange rates; income and expenses are translated using the average exchange rates for the reporting period.

Unrealized foreign currency translation adjustments are deferred in accumulated other comprehensive loss, a separate component of shareholders’ equity.

Cash Equivalents Cash equivalents are highly liquid investments (valued at cost, which approximates fair value) acquired with an original maturity of three months or less.

Short-term Investments Short-term investments are highly liquid, high credit quality investments (valued at cost plus accrued interest) that have stated maturities of greater than three months to one year.

The purchases and sales of these investments are classified as investing activities in the consolidated statement of cash flows.

Marketable Equity Securities The Company’s investment in marketable equity securities is recorded at fair market value and reported in “Other current assets” and “Investments” in the accompanying consolidated balance sheet with changes in fair market value recorded in income for those securities designated as trading securities and in other comprehensive income, net of tax, for those designated as available for sale securities.

The following table indicates the percentage of net sales represented by each of our major product categories during fiscal 2017 and 2016: