Question: what is the total mw capacity of the boiling water reactors?

def solution():
    # Define variables name and value
    pilgrim_capacity = 688
    fitzpatrick_capacity = 838
    vermont_yankee_capacity = 605

    # Do math calculation to get the answer
    answer = pilgrim_capacity + fitzpatrick_capacity + vermont_yankee_capacity

    return answer

Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy 253 including the continued effectiveness of the Clean Energy Standards/Zero Emissions Credit program (CES/ZEC), the establishment of certain long-term agreements on acceptable terms with the Energy Research and Development Authority of the State of New York in connection with the CES/ZEC program, and NYPSC approval of the transaction on acceptable terms, Entergy refueled the FitzPatrick plant in January and February 2017.

In October 2015, Entergy determined that it would close the Pilgrim plant.

The decision came after management’s extensive analysis of the economics and operating life of the plant following the NRC’s decision in September 2015 to place the plant in its “multiple/repetitive degraded cornerstone column” (Column 4) of its Reactor Oversight Process Action Matrix.

The Pilgrim plant is expected to cease operations on May 31, 2019, after refueling in the spring of 2017 and operating through the end of that fuel cycle.

In December 2015, Entergy Wholesale Commodities closed on the sale of its 583 MW Rhode Island State Energy Center (RISEC), in Johnston, Rhode Island.

The base sales price, excluding adjustments, was approximately $490 million.

Entergy Wholesale Commodities purchased RISEC for $346 million in December 2011.

In December 2016, Entergy announced that it reached an agreement with Consumers Energy to terminate the PPA for the Palisades plant on May 31, 2018.

Pursuant to the PPA termination agreement, Consumers Energy will pay Entergy $172 million for the early termination of the PPA.

The PPA termination agreement is subject to regulatory approvals.

Separately, and assuming regulatory approvals are obtained for the PPA termination agreement, Entergy intends to shut down the Palisades nuclear power plant permanently on October 1, 2018, after refueling in the spring of 2017 and operating through the end of that fuel cycle.

Entergy expects to enter into a new PPA with Consumers Energy under which the plant would continue to operate through October 1, 2018.

In January 2017, Entergy announced that it reached a settlement with New York State to shut down Indian Point 2 by April 30, 2020 and Indian Point 3 by April 30, 2021, and resolve all New York State-initiated legal challenges to Indian Point’s operating license renewal.

As part of the settlement, New York State has agreed to issue Indian Point’s water quality certification and Coastal Zone Management Act consistency certification and to withdraw its objection to license renewal before the NRC.

New York State also has agreed to issue a water discharge permit, which is required regardless of whether the plant is seeking a renewed NRC license.

The shutdowns are conditioned, among other things, upon such actions being taken by New York State.

Even without opposition, the NRC license renewal process is expected to continue at least into 2018.

With the settlement concerning Indian Point, Entergy now has announced plans for the disposition of all of the Entergy Wholesale Commodities nuclear power plants, including the sales of Vermont Yankee and FitzPatrick, and the earlier than previously expected shutdowns of Pilgrim, Palisades, Indian Point 2, and Indian Point 3.

See “Entergy Wholesale Commodities Exit from the Merchant Power Business” for further discussion.

Property Nuclear Generating Stations Entergy Wholesale Commodities includes the ownership of the following nuclear power plants:

|Power Plant|Market|In Service Year|Acquired|Location|Capacity - Reactor Type|License Expiration Date|
|Pilgrim (a)|IS0-NE|1972|July 1999|Plymouth, MA|688 MW - Boiling Water|2032 (a)|
|FitzPatrick (b)|NYISO|1975|Nov. 2000|Oswego, NY|838 MW - Boiling Water|2034 (b)|
|Indian Point 3 (c)|NYISO|1976|Nov. 2000|Buchanan, NY|1,041 MW - Pressurized Water|2015 (c)|
|Indian Point 2 (c)|NYISO|1974|Sept. 2001|Buchanan, NY|1,028 MW - Pressurized Water|2013 (c)|
|Vermont Yankee (d)|IS0-NE|1972|July 2002|Vernon, VT|605 MW - Boiling Water|2032 (d)|
|Palisades (e)|MISO|1971|Apr. 2007|Covert, MI|811 MW - Pressurized Water|2031 (e)|

ITEM 7 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) includes the following sections: ?

Executive Overview that discusses at a high level our operating results and some of the trends that affect our business.  ?

Critical Accounting Policies and Estimates that we believe are important to understanding the assumptions and judgments underlying our financial statements.  ?

Results of Operations that includes a more detailed discussion of our revenue and expenses.  ?

Liquidity and Capital Resources which discusses key aspects of our statements of cash flows, changes in our balance sheets and our financial commitments.

You should note that this MD&A discussion contains forward-looking statements that involve risks and uncertainties.

Please see the section entitled “Forward-Looking Statements and Risk Factors” at the beginning of Item 1A for important information to consider when evaluating such statements.

You should read this MD&A in conjunction with the financial statements and related notes in Item 8 of this Annual Report.

In fiscal 2014 we acquired Check Inc.  and in fiscal 2012 we acquired Demandforce, Inc.  We have included their results of operations in our consolidated results of operations from the dates of acquisition.

In fiscal 2013 we completed the sale of our Intuit Websites business and in fiscal 2014 we completed the sales of our Intuit Financial Services (IFS) and Intuit Health businesses.

We accounted for all of these businesses as discontinued operations and have therefore reclassified our statements of operations for all periods presented to reflect them as such.

We have also reclassified our balance sheets for all periods presented to reflect IFS as discontinued operations.

The net assets of Intuit Websites and Intuit Health were not significant, so we have not reclassified our balance sheets for any period presented to reflect them as discontinued operations.

Because the cash flows of our Intuit Websites, IFS, and Intuit Health discontinued operations were not material for any period presented, we have not segregated the cash flows of those businesses from continuing operations on our statements of cash flows.

See “Results of Operations – Non-Operating Income and Expense – Discontinued Operations” later in this Item 7 for more information.

Unless otherwise noted, the following discussion pertains to our continuing operations.

Executive Overview This overview provides a high level discussion of our operating results and some of the trends that affect our business.

We believe that an understanding of these trends is important in order to understand our financial results for fiscal 2014 as well as our future prospects.

This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Annual Report on Form 10-K.

See the table later in this Note 7 for more information on the IFS operating results.

The carrying amounts of the major classes of assets and liabilities of IFS at July 31, 2013 were as shown in the following table.

These carrying amounts approximated fair value.

|(In millions)|July 31, 2013|
|Accounts receivable|$40|
|Other current assets|4|
|Property and equipment, net|31|
|Goodwill|914|
|Purchased intangible assets, net|4|
|Other assets|6|
|Total assets|999|
|Accounts payable|15|
|Accrued compensation|21|
|Deferred revenue|3|
|Long-term obligations|9|
|Total liabilities|48|
|Net assets|$951|

Intuit Health In July 2013 management having the authority to do so formally approved a plan to sell our Intuit Health business and on August 19, 2013 we completed the sale for cash consideration that was not significant.

We recorded a $4 million pre-tax loss on the disposal of Intuit Health that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014.

The decision to sell the Intuit Health business was a result of management's desire to focus resources on its offerings for small businesses, consumers, and accounting professionals.

Intuit Health was part of our former Other Businesses reportable segment.

We determined that our Intuit Health business became a long-lived asset held for sale in the fourth quarter of fiscal 2013.

A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell.

Since the carrying value of Intuit Health at July 31, 2013 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary at that date.

We also classified our Intuit Health business as discontinued operations in the fourth quarter of fiscal 2013 and have segregated its operating results in our statements of operations for all periods presented.

See the table later in this Note for more information.

We have not segregated the net assets of Intuit Health on our balance sheets for any period presented.

Net assets held for sale at July 31, 2013 consisted primarily of operating assets and liabilities that were not material.

Because operating cash flows from the Intuit Health business were also not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Intuit Websites In July 2012 management having the authority to do so formally approved a plan to sell our Intuit Websites business, which was a component of our Small Business reportable segment.

The decision was the result of a shift in our strategy for helping small businesses to establish an online presence.

On August 10, 2012 we signed a definitive agreement to sell our Intuit Websites business and on September 17, 2012 we completed the sale for approximately $60 million in cash.

We recorded a gain on disposal of approximately $32 million, net of income taxes.

We determined that our Intuit Websites business became a long-lived asset held for sale in the fourth quarter of fiscal 2012.

Since the carrying value of Intuit Websites at July 31, 2012 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary at that date.


Question: What is the ratio of Construction to the total in2015 for Commercial real estate?

def solution():
    construction = 1031
    total_commercial_real_estate = 5268

    answer = (construction / total_commercial_real_estate) * 100

    return answer

In 2013, the Federal Reserve and the OCC adopted final capital rules implementing Basel III requirements for U. S.  Banking organizations.

The final rules establish an integrated regulatory capital framework and implement in the United States the Basel III regulatory capital reforms from the Basel Committee on Banking Supervision and certain changes required by the Dodd-Frank Act.

Under the final rule, minimum requirements will increase for both the quantity and quality of capital held by banking organizations.

Consistent with the international Basel framework, the final rule includes a new minimum ratio of common equity tier 1 capital to risk-weighted assets and a capital conservation buffer of 2.5% of risk-weighted assets that will apply to all supervised financial institutions.

The rule also raises the minimum ratio of tier 1 capital to risk-weighted assets and includes a minimum leverage ratio of 4%.

These new minimum capital ratios were effective for us on January 1, 2015, and will be fully phased-in on January 1, 2019.

The following are the Basel III regulatory capital levels that we must satisfy to avoid limitations on capital distributions and discretionary bonus payments during the applicable transition period, from January 1, 2015, until January 1, 2019:

||Basel III Regulatory Capital Levels|
||January 1,2015|January 1,2016|January 1,2017|January 1,2018|January 1,2019|
|Common equity tier 1 risk-based capital ratio|4.5%|5.125%|5.75%|6.375%|7.0%|
|Tier 1 risk-based capital ratio|6.0%|6.625%|7.25%|7.875%|8.5%|
|Total risk-based capital ratio|8.0%|8.625%|9.25%|9.875%|10.5%|

The final rule emphasizes CET1 capital, the most loss-absorbing form of capital, and implements strict eligibility criteria for regulatory capital instruments.

The final rule also improves the methodology for calculating risk-weighted assets to enhance risk sensitivity.

Banks and regulators use risk weighting to assign different levels of risk to different classes of assets.

Based on the final Basel III rule, banking organizations with more than $15 billion in total consolidated assets are required to phase-out of additional tier 1 capital any non-qualifying capital instruments (such as trust preferred securities and cumulative preferred shares) issued before September 12, 2010.

We began the additional tier 1 capital phase-out of our trust preferred securities in 2015, but will be able to include these instruments in tier 2 capital as a non-advanced approaches institution.

Under Basel III, CET1 predominantly includes common stockholders’ equity, less certain deductions for goodwill and other intangible assets net of related taxes, over-funded net pension fund assets, and DTAs that arise from tax loss and credit carryforwards.

We elected to exclude accumulated other comprehensive income from CET1 as permitted in the final rule.

Tier 1 capital is predominantly comprised of CET1 as well as perpetual preferred stock and qualifying minority interests.

Total capital predominantly includes tier 1 capital as well as certain long-term debt and allowance for credit losses qualifying for tier 2 capital.

The calculations of CET1, tier 1 capital, and tier 2 capital include phase-out periods for certain instruments from January 2015 through December 2017.

The primary items subject to the phase-out from capital for us are other intangible assets, DTAs that arise from tax loss and credit carryforwards, and trust preferred securities.

Risk-weighted assets under the Basel III Standardized Approach are generally based on supervisory risk weightings that vary only by counterparty type and asset class.

The revisions to supervisory risk weightings for Basel III enhance risk sensitivity and include alternatives to the use of credit ratings when calculating the risk weight for certain assets.

Specifically, Basel III includes a more risk-sensitive treatment for past due and nonaccrual loans, certain commercial loans, MSRs, and certain unfunded commitments.

Basel III also prescribes a new formulaic approach for calculating the risk weight of securitization exposures that is also more risk sensitive.

Failure to meet applicable capital guidelines could subject the financial institution to a variety of enforcement remedies available to the federal regulatory authorities.

These include limitations on the ability to pay dividends, the issuance by the regulatory authority of a directive to increase capital, and the termination of deposit insurance by the FDIC.

In addition, the financial institution could be subject to the measures described below under Prompt Corrective Action as applicable to undercapitalized institutions.

The risk-based capital standards of the Federal Reserve, the OCC, and the FDIC specify that evaluations by the banking agencies of a bank’s capital adequacy will include an assessment of the exposure to declines in the economic value of a bank’s capital due to changes in interest rates.

These banking agencies issued a joint policy statement on interest rate risk describing prudent methods for monitoring such risk that rely principally on internal measures of exposure and active oversight of risk management activities by senior management.

Home equity – Home equity lending includes both home equity loans and lines-of-credit.

This type of lending, which is secured by a first-lien or junior-lien on the borrower’s residence, allows customers to borrow against the equity in their home or refinance existing mortgage debt.

Products include closed-end loans which are generally fixed-rate with principal and interest payments, and variable-rate, interest-only lines-of-credit which do not require payment of principal during the 10-year revolving period.

The home equity line of credit may convert to a 20-year amortizing structure at the end of the revolving period.

Applications are underwritten centrally in conjunction with an automated underwriting system.

The home equity underwriting criteria is based on minimum credit scores, debt-to-income ratios, and LTV ratios, with current collateral valuations.

The underwriting for the floating rate lines of credit also incorporates a stress analysis for a rising interest rate.

Residential mortgage – Residential mortgage loans represent loans to consumers for the purchase or refinance of a residence.

These loans are generally financed over a 15-year to 30-year term, and in most cases, are extended to borrowers to finance their primary residence.

Applications are underwritten centrally using consistent credit policies and processes.

All residential mortgage loan decisions utilize a full appraisal for collateral valuation.

Huntington has not originated or acquired residential mortgages that allow negative amortization or allow the borrower multiple payment options.

Other consumer – Other consumer loans primarily consists of consumer loans not secured by real estate, including personal unsecured loans, overdraft balances, and credit cards.

The table below provides the composition of our total loan and lease portfolio: Table 8 - Loan and Lease Portfolio Composition (dollar amounts in millions)

(1) As defined by regulatory guidance, there were no commercial loans outstanding that would be considered a concentration of lending to a particular industry or group of industries.

Our loan portfolio is diversified by consumer and commercial credit.

At the corporate level, we manage the credit exposure in part via a credit concentration policy.

The policy designates specific loan types, collateral types, and loan structures to be formally tracked and assigned limits as a percentage of capital.

C&I lending by NAICS categories, specific limits for CRE primary project types, loans secured by residential real estate, shared national credit exposure, and designated high risk loan definitions represent examples of specifically tracked components of our concentration management process.

Currently there are no identified concentrations that exceed the established limit.

Our concentration management policy is approved by the Risk Oversight Committee (ROC) and is one of the strategies used to ensure a high quality, well diversified portfolio that is consistent with our overall objective of maintaining an aggregate moderate-to-low risk profile.

Changes to existing concentration limits require the approval of the ROC prior to implementation, incorporating specific information relating to the potential impact on the overall portfolio composition and performance metrics.

The table below provides our total loan and lease portfolio segregated by the type of collateral securing the loan or lease.

The changes in the collateral composition from December 31, 2014 are consistent with the portfolio growth metrics, with increases noted

Table 48 - Selected Quarterly Income Statement, Capital, and Other Data (1)

||2014|
|Capital adequacy|December 31,|September 30,|June 30,|March 31,|
|Total risk-weighted assets(in millions)(11)|$54,479|$53,239|$53,035|$51,120|
|Tier 1 leverage ratio-11|9.74%|9.83%|10.01%|10.32%|
|Tier 1 risk-based capital ratio-11|11.50|11.61|11.56|11.95|
|Total risk-based capital ratio-11|13.56|13.72|13.67|14.13|
|Tier 1 common risk-based capital ratio-11|10.23|10.31|10.26|10.60|
|Tangible common equity / tangible asset ratio-8|8.17|8.35|8.38|8.63|
|Tangible equity / tangible asset ratio-9|8.76|8.95|8.99|9.26|
|Tangible common equity / risk-weighted assets ratio-11|9.86|9.99|9.99|10.22|

(1) Comparisons for presented periods are impacted by a number of factors.

Refer to the Significant Items section for additional discussion regarding these items.

(2) For all quarterly periods presented above, the impact of the convertible preferred stock issued in April of 2008 was excluded from the diluted share calculation because the result would have been higher than basic earnings per common share (antidilutive) for the periods.

(3) Deferred tax liability related to other intangible assets is calculated assuming a 35% tax rate.

(4) High and low stock prices are intra-day quotes obtained from Bloomberg.

(5) Net income applicable to common shares excluding expense for amortization of intangibles for the period divided by average tangible common shareholders’ equity.

Average tangible common shareholders’ equity equals average total common shareholders’ equity less average intangible assets and goodwill.

Expense for amortization of intangibles and average intangible assets are net of deferred tax liability, and calculated assuming a 35% tax rate.

(6) Noninterest expense less amortization of intangibles and goodwill impairment divided by the sum of FTE net interest income and noninterest income excluding securities gains (losses).

(7) Presented on a FTE basis assuming a 35% tax rate.

(8) Tangible common equity (total common equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets).

Other intangible assets are net of deferred tax, and calculated assuming a 35% tax rate.

(9) Tangible equity (total equity less goodwill and other intangible assets) divided by tangible assets (total assets less goodwill and other intangible assets).

Other intangible assets are net of deferred tax, and calculated assuming a 35% tax rate.

(10) On January 1, 2015, we became subject to the Basel III capital requirements and the standardized approach for calculating risk-weighted assets in accordance with subpart D of the final capital rule.

(11) Ratios are calculated on the Basel I basis.

ADDITIONAL DISCLOSURES Forward-Looking Statements This report, including MD&A, contains certain forward-looking statements, including certain plans, expectations, goals, projections, and statements, which are subject to numerous assumptions, risks, and uncertainties.

Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements.

Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations.

The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) worsening of credit quality performance due to a number of factors such as the underlying value of collateral that could prove less valuable than otherwise assumed and assumed cash flows may be worse than expected, (2) changes in general economic, political, or industry conditions, uncertainty in U. S.  fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board, volatility and disruptions in global capital and credit markets, (3) movements in interest rates, (4) competitive pressures on product pricing and services, (5) success, impact, and timing of our business strategies, including market acceptance of any new products or services

technical and research personnel and lab facilities, and significantly expanded the portfolio of patents available to us via license and through a cooperative development program.

In addition, we have acquired a 20 percent interest in GRT, Inc.

The GTFTM technology is protected by an intellectual property protection program.

The U. S.  has granted 17 patents for the technology, with another 22 pending.

Worldwide, there are over 300 patents issued or pending, covering over 100 countries including regional and direct foreign filings.

Another innovative technology that we are developing focuses on reducing the processing and transportation costs of natural gas by artificially creating natural gas hydrates, which are more easily transportable than natural gas in its gaseous form.

Much like LNG, gas hydrates would then be regasified upon delivery to the receiving market.

We have an active pilot program in place to test and further develop a proprietary natural gas hydrates manufacturing system.

The above discussion of the Integrated Gas segment contains forward-looking statements with respect to the possible expansion of the LNG production facility.

Factors that could potentially affect the possible expansion of the LNG production facility include partner and government approvals, access to sufficient natural gas volumes through exploration or commercial negotiations with other resource owners and access to sufficient regasification capacity.

The foregoing factors (among others) could cause actual results to differ materially from those set forth in the forward-looking statements.

Refining, Marketing and Transportation We have refining, marketing and transportation operations concentrated primarily in the Midwest, upper Great Plains, Gulf Coast and Southeast regions of the U. S.  We rank as the fifth largest crude oil refiner in the U. S.  and the largest in the Midwest.

Our operations include a seven-plant refining network and an integrated terminal and transportation system which supplies wholesale and Marathon-brand customers as well as our own retail operations.

Our wholly-owned retail marketing subsidiary Speedway SuperAmerica LLC (“SSA”) is the third largest chain of company-owned and -operated retail gasoline and convenience stores in the U. S.  and the largest in the Midwest.

Refining We own and operate seven refineries with an aggregate refining capacity of 1.188 million barrels per day (“mmbpd”) of crude oil as of December 31, 2009.

During 2009, our refineries processed 957 mbpd of crude oil and 196 mbpd of other charge and blend stocks.

The table below sets forth the location and daily crude oil refining capacity of each of our refineries as of December 31, 2009.


Question: If Total operating revenues develops with the same increasing rate in 2011, what will it reach in 2012? (in million)

def solution():
    # Define variables
    total_operating_revenues_2011 = 4092.2
    total_operating_revenues_2010 = 3487.7

    # Calculate the rate of increase
    rate_of_increase = (total_operating_revenues_2011 - total_operating_revenues_2010) / total_operating_revenues_2010

    # Estimate the total operating revenues for 2012
    answer = total_operating_revenues_2011 * (1 + rate_of_increase)

    return answer

||Payments Due By Period(a)|
|($ in millions)|Total|Less than1 Year|1-3 Years|3-5 Years|More than5 Years|
|Long-term debt, including capital leases|$2,750.1|$34.5|$188.3|$367.1|$2,160.2|
|Interest payments on long-term debt(b)|1,267.5|160.5|316.4|304.2|486.4|
|Operating leases|93.2|31.1|37.1|16.6|8.4|
|Purchase obligations(c)|6,586.9|2,709.5|3,779.4|98.0|−|
|Total payments on contractual obligations|$10,697.7|$2,935.6|$4,321.2|$785.9|$2,655.0|

(a) Amounts reported in local currencies have been translated at the year-end 2010 exchange rates.

(b) For variable rate facilities, amounts are based on interest rates in effect at year end and do not contemplate the effects of hedging instruments.

(c) The company’s purchase obligations include contracted amounts for aluminum, steel and other direct materials.

Also included are commitments for purchases of natural gas and electricity, aerospace and technologies contracts and other less significant items.

In cases where variable prices and/or usage are involved, management’s best estimates have been used.

Depending on the circumstances, early termination of the contracts may or may not result in penalties and, therefore, actual payments could vary significantly.

The table above does not include $60.1 million of uncertain tax positions, the timing of which is uncertain.

Contributions to the company’s defined benefit pension plans, not including the unfunded German plans, are expected to be in the range of $30 million in 2011.

This estimate may change based on changes in the Pension Protection Act and actual plan asset performance, among other factors.

Benefit payments related to these plans are expected to be $71.4 million, $74.0 million, $77.1 million, $80.3 million and $84.9 million for the years ending December 31, 2011 through 2015, respectively, and a total of $483.1 million for the years 2016 through 2020.

Payments to participants in the unfunded Other Liquidity Items Cash payments required for long-term debt maturities, rental payments under noncancellable operating leases, purchase obligations and other commitments in effect at December 31, 2010, are summarized in the following table:

(a) Amounts reported in local currencies have been translated at the year-end 2010 exchange rates.

(c) The company¡¯s purchase obligations include contracted amounts for aluminum, steel and other direct materials.

In cases where variable prices and/or usage are involved, management¡¯s best estimates have been used.

The table above does not include $60.1 million of uncertain tax positions, the timing of which is uncertain.

Contributions to the company¡¯s defined benefit pension plans, not including the unfunded German plans, are expected to be in the range of $30 million in 2011.

Payments to participants in the unfunded German plans are expected to be between $21.8 million (€16.5 million) to $23.2 million (€17.5 million) in each of the years 2011 through 2015 and a total of $102.7 million (€77.5 million) for the years 2016 through 2020.

For the U. S.  pension plans in 2011, we changed our return on asset assumption to 8.00 percent (from 8.25 percent in 2010) and our discount rate assumption to an average of 5.55 percent (from 6.00 percent in 2010).

Based on the changes in assumptions, pension expense in 2011 is anticipated to be relatively flat compared to 2010.

A reduction of the expected return on pension assets assumption by a quarter of a percentage point would result in an estimated $2.9 million increase in the 2011 global pension expense, while a quarter of a percentage point reduction in the discount rate applied to the pension liability would result in an estimated $3.5 million of additional pension expense in 2011.

Additional information regarding the company¡¯s pension plans is provided in Note 14 accompanying the consolidated financial statements within Item 8 of this report.

Annual cash dividends paid on common stock were 20 cents per share in 2010, 2009 and 2008.

Total dividends paid were $35.8 million in 2010, $37.4 million in 2009 and $37.5 million in 2008.

On January 26, 2011, the company¡¯s board of directors approved an increase in the quarterly dividends to 7 cents per share.

Share Repurchases Our share repurchases, net of issuances, totaled $506.7 million in 2010, $5.1 million in 2009 and $299.6 million in 2008.

On November 2, 2010, we acquired 2,775,408 shares of our publicly held common stock in a private transaction for $88.8 million.

On February 17, 2010, we entered into an accelerated share repurchase agreement to buy $125.0 million of our common shares using cash on hand and available borrowings.

We advanced the $125.0 million on February 22, 2010, and received 4,323,598 shares, which represented 90 percent of the total shares as calculated using the previous day¡¯s closing price.

The agreement was settled on May 20, 2010, and the company received an additional 398,206 shares.

Net repurchases in 2008 included a $31 million settlement on January 7, 2008, of a forward contract entered into in December 2007 for the repurchase of 1,350,000 shares.

From January 1 through February 24, 2011, Ball repurchased an additional $143.3 million of its common stock.

Table of Contents into U. S.  Dollars using the spot foreign exchange rate in effect on the exercise date.

Upon the exercise of share options, the company either issues new shares or can utilize shares held in treasury (see Note 10, “Share Capital”) to satisfy the exercise.

The share option plans provided for a grant price equal to the quoted market price of the company's shares on the date of grant.

If the options remain unexercised after a period of 10 years from the date of grant, the options expire.

Furthermore, options are forfeited if the employee leaves the company before the options vest.

All options outstanding at December 31, 2011were exercisable and had a range of exercise prices from ￡6.39 to ￡19.19, and weighted average remaining contractual life of 2.62 years.

The total intrinsic value of options exercised during the years ended December 31, 2011, 2010, and 2009, was $9.2 million, $18.5 million, and $20.7 million, respectively.

At December 31, 2011, the aggregate intrinsic value of options outstanding and options exercisable was $36.3 million.

The market price of the company's common stock at December 31, 2011 was $20.09 (December 31, 2010: $24.06).

Changes in outstanding share option awards are as follows:

||2011|2010|2009|
|Millions of shares, except prices|Options|Weighted Average Exercise Price(£ Sterling)|Options|Weighted Average Exercise Price(£ Sterling)|Options|Weighted Average Exercise Price(£ Sterling)|
|Outstanding at the beginning of year|10.7|13.85|16.4|14.99|23.1|14.06|
|Forfeited during the year|-5.3|19.70|-3.9|21.90|-2.1|15.15|
|Exercised during the year|-0.9|8.33|-1.8|6.70|-4.6|10.20|
|Outstanding at the end of the year|4.5|7.85|10.7|13.85|16.4|14.99|
|Exercisable at the end of the year|4.5|7.85|10.7|13.85|16.4|14.99|

RETIREMENT BENEFIT PLANS Defined Contribution Plans The company operates defined contribution retirement benefit plans for all qualifying employees.

The assets of the plans are held separately from those of the company in funds under the control of trustees.

When employees leave the plans prior to vesting fully in the contributions, the contributions payable by the company are reduced by the amount of forfeited contributions.

The total amounts charged to the Consolidated Statements of Income for the year ended December 31, 2011, of $53.2 million (December 31, 2010: $47.0 million, 2009: $43.6 million) represent contributions paid or payable to these plans by the company at rates specified in the rules of the plans.

As of December 31, 2011, accrued contributions of $20.0 million (December 31, 2010: $18.9 million) for the current year will be paid to the plans.

Defined Benefit Plans The company maintains legacy defined benefit pension plans for qualifying employees of its subsidiaries in the U. K. , Ireland, Germany and Taiwan.

All defined benefit plans are closed to new participants.

The company also maintains a postretirement medical plan in the U. S. , which was closed to new participants in 2005.

In 2006, the plan was amended to eliminate benefits for all participants who will not meet retirement eligibility by 2008.

The assets of all defined benefit schemes are held in separate trustee-administered funds.

Under the plans, the employees are generally entitled to retirement benefits based on final salary at retirement.

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were valued as of December 31, 2011.

The benefit obligation, related current service cost and prior service cost were measured using the projected unit credit method.

|$ in millions|Before Consolidation-1|Consolidated Investment Products|Adjustments-1(2)|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|

(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, 2011 of $20.3 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 (year ended December 31, 2010: $6.4 million).

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-GAAPfinancial measure presentation.

(2) 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.

Operating Revenues and Net Revenues The main categories of revenues, and the dollar and percentage change between the periods, are as follows:

|$ in millions|2011|2010|$ Change|% Change|
|Investment management fees|3,138.5|2,720.9|417.6|15.3%|
|Service and distribution fees|780.3|645.5|134.8|20.9%|
|Performance fees|37.9|26.1|11.8|45.2%|
|Other|135.5|95.2|40.3|42.3%|
|Total operating revenues|4,092.2|3,487.7|604.5|17.3%|
|Third-party distribution, service and advisory expenses|-1,282.5|-1,053.8|-228.7|21.7%|
|Proportional share of revenues, net of third-party distribution expenses, from joint venture investments|41.4|42.2|-0.8|-1.9%|
|Management fees earned from consolidated investment products|46.8|45.3|1.5|3.3%|
|Performance fees earned from consolidated investment products|0.5|—|0.5|N/A|
|Other revenues recorded by consolidated investment products|—|-0.3|0.3|-100.0%|
|Net revenues|2,898.4|2,521.1|377.3|15.0%|

Operating revenues increased by 17.3% in the year ended December 31, 2011 to $4,092.2 million (year ended December 31, 2010: $3,487.7 million).

Net revenues increased by 15.0% in in the year ended December 31, 2011 to $2,898.4 million (year ended December 31, 2010: $2,521.1 million).

Net revenues are operating revenues less third-party distribution, service and advisory expenses, plus our proportional share of net revenues from joint venture arrangements, plus management and performance fees

Table of Contents both probable and reasonably estimable.

We must from time to time make material estimates with respect to legal and other contingencies.

The nature of our business requires compliance with various state and federal statutes, as well as various contractual obligations, and exposes us to a variety of legal proceedings and matters in the ordinary course of business.

While the outcomes of matters such as these are inherently uncertain and difficult to predict, we maintain reserves reflected in other current and other non-current liabilities, as appropriate, for identified losses that are, in our judgment, probable and reasonably estimable.

Management's judgment is based on the advice of legal counsel, ruling on various motions by the applicable court, review of the outcome of similar matters, if applicable, and review of guidance from state or federal agencies, if applicable.

Contingent consideration payable in relation to a business acquisition is recorded as of the acquisition date as part of the fair value transferred in exchange for the acquired business.

Recent Accounting Standards See Item 8, Financial Statements and Supplementary Data - Note 1, “Accounting Policies - Accounting Pronouncements Recently Adopted and Pending Accounting Pronouncements.

Quantitative and Qualitative Disclosures About Market Risk In the normal course of its business, the company is primarily exposed to market risk in the form of securities market risk, interest rate risk, and foreign exchange rate risk.

AUM Market Price Risk The company's investment management revenues are comprised of fees based on a percentage of the value of AUM.

Declines in equity or fixed income security market prices could cause revenues to decline because of lower investment management fees by: ?

Causing the value of AUM to decrease.  ?

Causing the returns realized on AUM to decrease (impacting performance fees).  ?

Causing clients to withdraw funds in favor of investments in markets that they perceive to offer greater opportunity and that the company does not serve.  ?

Causing clients to rebalance assets away from investments that the company manages into investments that the company does not manage.  ?

Causing clients to reallocate assets away from products that earn higher revenues into products that earn lower revenues.

Underperformance of client accounts relative to competing products could exacerbate these factors.

Securities Market Risk The company has investments in sponsored investment products that invest in a variety of asset classes.

Investments are generally made to establish a track record or to hedge economically exposure to certain deferred compensation plans.

The company's exposure to market risk arises from its investments.

The following table summarizes the fair values of the investments exposed to market risk and provides a sensitivity analysis of the estimated fair values of those investments, assuming a 20% increase or decrease in fair values:


Question: what was the percentage change in net sales from 2011 to 2012?

def solution():
    # Define variables name and value
    net_sales_2012 = 156508
    net_sales_2011 = 108249

    # Do math calculation to get the answer
    sales_difference = net_sales_2012 - net_sales_2011
    answer = (sales_difference / net_sales_2011) * 100

    return answer

$43.3 million in 2011 compared to $34.1 million in 2010.

The Retail segment represented 13% and 15% of the Company’s total net sales in 2011 and 2010, respectively.

The Retail segment’s operating income was $4.7 billion, $3.2 billion, and $2.3 billion during 2012, 2011, and 2010 respectively.

These year-over-year increases in Retail operating income were primarily attributable to higher overall net sales that resulted in significantly higher average revenue per store during the respective years.

Gross Margin Gross margin for 2012, 2011 and 2010 are as follows (in millions, except gross margin percentages):

The gross margin percentage in 2012 was 43.9%, compared to 40.5% in 2011.

This year-over-year increase in gross margin was largely driven by lower commodity and other product costs, a higher mix of iPhone sales, and improved leverage on fixed costs from higher net sales.

The increase in gross margin was partially offset by the impact of a stronger U. S.  dollar.

The gross margin percentage during the first half of 2012 was 45.9% compared to 41.4% during the second half of 2012.

The primary drivers of higher gross margin in the first half of 2012 compared to the second half are a higher mix of iPhone sales and improved leverage on fixed costs from higher net sales.

Additionally, gross margin in the second half of 2012 was also affected by the introduction of new products with flat pricing that have higher cost structures and deliver greater value to customers, price reductions on certain existing products, higher transition costs associated with product launches, and continued strengthening of the U. S.  dollar; partially offset by lower commodity costs.

The gross margin percentage in 2011 was 40.5%, compared to 39.4% in 2010.

This year-over-year increase in gross margin was largely driven by lower commodity and other product costs.

The Company expects to experience decreases in its gross margin percentage in future periods, as compared to levels achieved during 2012, and the Company anticipates gross margin of about 36% during the first quarter of 2013.

Expected future declines in gross margin are largely due to a higher mix of new and innovative products with flat or reduced pricing that have higher cost structures and deliver greater value to customers and anticipated component cost and other cost increases.

Future strengthening of the U. S.  dollar could further negatively impact gross margin.

The foregoing statements regarding the Company’s expected gross margin percentage in future periods, including the first quarter of 2013, are forward-looking and could differ from actual results because of several factors including, but not limited to those set forth above in Part I, Item 1A of this Form 10-K under the heading “Risk Factors” and those described in this paragraph.

In general, gross margins and margins on individual products will remain under downward pressure due to a variety of factors, including continued industry wide global product pricing pressures, increased competition, compressed product life cycles, product transitions and potential increases in the cost of components, as well as potential increases in the costs of outside manufacturing services and a potential shift in the Company’s sales mix towards products with lower gross margins.

In response to competitive pressures, the Company expects it will continue to take product pricing actions, which would adversely affect gross margins.

Gross margins could also be affected by the Company’s ability to manage product quality and warranty costs effectively and to stimulate demand for certain of its products.

Due to the Company’s significant international operations, financial results can be significantly affected in the short-term by fluctuations in exchange rates.

PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements The Company’s liability for future policy benefits is also inclusive of liabilities for guaranteed benefits related to certain long-duration life and annuity contracts.

Liabilities for guaranteed benefits with embedded derivative features are primarily in “other contract liabilities” in the table above.

The remaining liabilities for guaranteed benefits are primarily reflected with the underlying contract.

See Note 11 for additional information regarding liabilities for guaranteed benefits related to certain long-duration life and annuity contracts.

Premium deficiency reserves included in “Future policy benefits” are established, if necessary, when the liability for future policy benefits plus the present value of expected future gross premiums are determined to be insufficient to provide for expected future policy benefits and expenses.

Premium deficiency reserves have been recorded for the group single premium annuity business, which consists of limited-payment, long-duration traditional, non-participating annuities; structured settlements; single premium immediate annuities with life contingencies; long-term care; and for certain individual health policies.

Unpaid claims and claim adjustment expenses primarily reflect the Company’s estimate of future disability claim payments and expenses as well as estimates of claims incurred but not yet reported as of the balance sheet dates related to group disability products.

Unpaid claim liabilities that are discounted use interest rates ranging from 3.0% to 6.4%.

Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows:

||2015|2014|
||(in millions)|
|Individual annuities|$37,384|$37,718|
|Group annuities|27,141|27,200|
|Guaranteed investment contracts and guaranteed interest accounts|14,122|14,428|
|Funding agreements|3,997|4,691|
|Interest-sensitive life contracts|32,502|30,406|
|Dividend accumulation and other|21,638|21,707|
|Total policyholders’ account balances|$136,784|$136,150|

Policyholders’ account balances primarily represent an accumulation of account deposits plus credited interest less withdrawals, expense charges and mortality charges, if applicable.

These policyholders’ account balances also include provisions for benefits under nonlife contingent payout annuities.

Included in “Funding agreements” at December 31, 2015 and 2014 are $2,957 million and $2,705 million, respectively, related to the Company’s FANIP.

Under this program, which has a maximum authorized amount of $15 billion, a Delaware statutory trust issues medium-term notes to investors that are secured by funding agreements issued to the trust by Prudential Insurance.

The outstanding notes have fixed or floating interest rates that range from 0.5% to 2.6% and original maturities ranging from two to ten years.

Included in the amounts at December 31, 2015 and 2014 is the medium-term note liability, which is carried at amortized cost, of $2,958 million and $2,705 million, respectively.

For additional details on the FANIP, see Note 5.

Also included in “Funding agreements” are collateralized funding agreements issued to the Federal Home Loan Bank of New York (“FHLBNY”) of $1,001 million and $1,947 million, as of December 31, 2015 and 2014, respectively.

These obligations, which are carried at amortized cost, have fixed or floating interest rates that range from 0.8% to 1.7% and original maturities ranging from four to seven years.

For additional details on the FHLBNY program, see Note 14.

Interest crediting rates range from 0% to 7.5% for interest-sensitive life contracts and from 0% to 12.5% for contracts other than interest-sensitive life.

Less than 1% of policyholders’ account balances have interest crediting rates in excess of 8%.11.

CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder.

The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”).

In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”).

These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.

The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held-to-maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other investment options.

The market value adjustment may result in a gain or loss to the Company, depending on crediting rates or an indexed rate at surrender, as applicable.

The Company also issues fixed deferred annuity contracts without MVA that have a guaranteed credited rate and annuity benefit.

In addition, the Company issues certain variable life, variable universal life and universal life contracts where the Company contractually guarantees to the contractholder a death benefit even when there is insufficient value to cover monthly mortality and expense charges, whereas otherwise the contract would typically lapse (no-lapse guarantee).

Variable life and variable universal life contracts are offered with general and separate account options.

Operating Results The following table sets forth the Individual Annuities segment’s operating results for the periods indicated.

||Year ended December 31,|
||2015|2014|2013|
||(in millions)|
|Operating results:||||
|Revenues|$4,695|$4,710|$4,465|
|Benefits and expenses|2,898|3,243|2,380|
|Adjusted operating income|1,797|1,467|2,085|
|Realized investment gains (losses), net, and related adjustments|1,588|521|-5,918|
|Related charges|-624|-137|1,716|
|Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures|$2,761|$1,851|$-2,117|

Adjusted Operating Income 2015 to 2014 Annual Comparison.

Adjusted operating income increased $330 million.

Excluding the impacts of changes in the estimated profitability of the business, discussed below, adjusted operating income increased $39 million.

The increase was driven by higher asset-based fee income due to growth in average variable annuity account values, net of a related increase in asset-based commissions, a decline in interest expense driven by lower debt, and a decline in amortization costs.

Partially offsetting this net increase were costs for contract cancellations in connection with remediation of an error in an illustration contained in certain product marketing materials, higher operating expenses and a decline in net investment income driven by lower income on non-coupon investments.

The impacts of changes in the estimated profitability of the business include adjustments to the amortization of DAC and other costs and to the reserves for the GMDB and GMIB features of our variable annuity products.

These adjustments resulted in a net benefit of $162 million and a net charge of $129 million in 2015 and 2014, respectively.

The $162 million net benefit in 2015 primarily reflected the net impact of equity market performance on contractholder accounts relative to our assumptions, as well as a net benefit resulting from our annual review and update of assumptions.

The $129 million net charge in 2014 primarily reflected the impact of lower expected rates of return on fixed income investments within contractholder accounts and on future expected claims relative to our assumptions, which more than offset a net favorable impact from equity market performance.

Partially offsetting this net charge was a net benefit resulting from the annual review and update of assumptions performed in that year.2014 to 2013 Annual Comparison.

Adjusted operating income decreased $618 million.

Excluding the impacts of changes in the estimated profitability of the business, discussed below, adjusted operating income increased $207 million.

The increase was driven by higher asset-based fee income due to growth in average variable annuity account values, net of a related increase in asset-based commissions.

Also contributing to the increase were lower amortization costs and reserve provisions for the GMDB and GMIB features of our variable annuity products.

Adjustments to the amortization of DAC and other costs and to the reserves for the GMDB and GMIB features of our variable annuity products resulted in a net charge of $129 million and a net benefit of $696 million in 2014 and 2013, respectively.

Partially offsetting this net charge was a net benefit resulting from the annual review and update of assumptions performed in that year.

The $696 million net benefit in 2013 included a $301 million net benefit resulting from the annual review and update of assumptions and other refinements performed in that year.

The remaining net benefit reflected the impact of positive market performance on contractholder accounts relative to our assumptions.

Revenues, Benefits and Expenses 2015 to 2014 Annual Comparison.

Revenues, as shown in the table above under “—Operating Results,” decreased $15 million, primarily driven by a $27 million decrease in net investment income due to lower income on non-coupon investments, partially offset by a $19 million increase in policy charges and fee income due to growth in average variable annuity account values.

Benefits and expenses, as shown in the table above under “—Operating Results,” decreased $345 million.

Absent the $291 million net decrease related to the impacts of certain changes in our estimated profitability of the business discussed above, benefits and expenses decreased $54 million.

Interest expense decreased $38 million driven by lower debt, and interest credited to policyholders’ account balances decreased $26 million driven by lower average account values in the general account.

Partially offsetting these decreases was a $14 million increase in policyholders’ benefits driven by costs for contract cancellations, as discussed above.2014 to 2013 Annual Comparison.

Revenues increased $245 million, primarily driven by a $311 million increase in policy charges and fee income, asset management and service fees and other income, due to growth in average variable annuity account values.

Partially offsetting this increase was a $63 million decline in net investment income, driven by lower reinvestment rates and lower average account values in the general account due to surrenders of legacy general account products.

Benefits and expenses increased $863 million.

Absent the $825 million net increase related to the impacts of certain changes in our estimated profitability of the business discussed above, benefits and expenses increased $38 million.

General and administrative expenses, net of capitalization, increased $111 million, driven by higher asset-based commissions and asset management costs due to account value

The following table sets forth the income yield and investment income for each major investment category of our general account investments, excluding both the Closed Block division and the Japanese insurance operations’ portion of the general account which is presented separately below, for the periods indicated.

The yields are based on net investment income as reported under U. S.  GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are included in realized gains (losses).

(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity.

Yields for fixed maturities are based on amortized cost.

Yields for equity securities are based on cost.

Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity.

Yields exclude investment income on assets other than those included in invested assets.

Prior period yields are presented on a basis consistent with the current period presentation.

(2) Includes investment income of our asset management operations and derivative operations, as described below under “—Invested Assets of Other Entities and Operations.

” The decrease in net investment income yield attributable to our general account investments, excluding both the Closed Block division and the Japanese operations’ portfolio, for 2015, compared to 2014, was primarily the result of lower income from non-coupon investments and lower fixed income reinvestment rates.

The increase in net investment income yield attributable to our general account investments, excluding both the Closed Block division and the Japanese operations’ portfolio, for 2014, compared to 2013, was primarily the result of higher income from non-coupon investments and from reinvestments within certain asset portfolios primarily into higher yielding securities, primarily during the second half of 2013.

The following table sets forth the income yield and investment income for each major investment category of our Japanese insurance operations’ general account for the periods indicated.

The yields are based on net investment income as reported under U. S.  GAAP and as such do not include certain interest related items, such as settlements of duration management swaps which are included in realized gains and losses.

(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity.

Yields for fixed maturities are based on amortized cost.

Yields for equity securities are based on cost.

Yields exclude investment income on assets other than those included in invested assets.

Prior period yields are presented on a basis consistent with the current period presentation.

The increase in net investment income yield on the Japanese insurance portfolio for 2015, compared to 2014, was primarily attributable to a higher allocation into U. S.  dollar-denominated investments.


Question: What is the average value of Greater than 4% of Individual Fixed Annuities in Table 0 and Cash at beginning of year in Table 2 in 2009? (in million)

def solution():
    # Define variables name and value
    individual_fixed_annuities_greater_than_4_percent = 23885
    cash_at_beginning_of_year = 8642

    # Do math calculation to get the answer
    answer = (individual_fixed_annuities_greater_than_4_percent + cash_at_beginning_of_year) / 2

    return answer

2010 and 2009 Comparison Surrender rates have improved compared to the prior year for group retirement products, individual fixed annuities and individual variable annuities as surrenders have returned to more normal levels.

Surrender rates for individual fixed annuities have decreased significantly in 2010 due to the low interest rate environment and the relative competitiveness of interest credited rates on the existing block of fixed annuities versus interest rates on alternative investment options available in the marketplace.

Surrender rates for group retirement products are expected to increase in 2011 as certain large group surrenders are anticipated.2009 and 2008 Comparison Surrenders and other withdrawals increased in 2009 for group retirement products primarily due to higher large group surrenders.

However, surrender rates and withdrawals have improved for individual fixed annuities and individual variable annuities.

The following table presents reserves by surrender charge category and surrender rates:

* Excludes mutual funds of $9.0 billion and $8.1 billion in 2010 and 2009, respectively.

Financial Services Operations AIG’s Financial Services subsidiaries engage in diversified activities including commercial aircraft leasing and the remaining Capital Markets portfolios, which are conducted through ILFC and AIGFP, respectively.

Following the classification of AGF as discontinued operations in the third quarter of 2010 (see Note 4 to the Consolidated Financial Statements), AIG’s remaining consumer finance businesses are now reported in AIG’s Other operations category as part of Divested businesses.

As discussed in Note 3 to the Consolidated Financial Statements, in order to align financial reporting with changes made during the third quarter of 2010 to the manner in which AIG’s chief operating decision makers review the businesses to make decisions about resources to be allocated and to assess performance, changes were made to AIG’s segment information.

During the third quarter of 2010, AIG’s Asset Management Group undertook the management responsibilities for non-derivative assets and liabilities of the Capital Markets’ businesses of the Financial Services segment.

These assets and liabilities are being managed on a spread basis, in concert with the MIP.

Accordingly, gains and losses related to these assets and liabilities, primarily consisting of credit valuation adjustment gains and losses are reported in AIG’s Other operations category as part of Asset Management — Direct Investment business.

Also, intercompany interest related to loans from AIG Funding Inc.  (AIG Funding) to AIGFP is no longer being allocated to Capital Markets from Other operations.

The remaining Capital Markets derivatives business continues to be reported in the Financial Services segment as part of Capital Markets results.

American International Group, Inc. , and Subsidiaries solely for illustrative purposes.

The selection of these specific events should not be construed as a prediction, but only as a demonstration of the potential effects of such events.

These scenarios should not be construed as the only risks AIG faces; these events are shown as an indication of several possible losses AIG could experience.

In addition, losses from these and other risks could be materially higher than illustrated.

The sensitivity factors utilized for 2010 and presented above were selected based on historical data from 1990 to 2010, as follows (see the table below): ?

a 100 basis point parallel shift in the yield curve is broadly consistent with a one standard deviation movement of the benchmark ten-year treasury yield; ?

a 20 percent drop for equity and alternative investments is broadly consistent with a one standard deviation movement in the S&P 500; and ?

a 10 percent depreciation of foreign currency exchange rates is consistent with a one standard deviation movement in the U. S.  dollar (USD)/Japanese Yen (JPY) exchange rate.

||Period|StandardDeviation|Suggested2010Scenario|2010 Scenarioas aMultiple ofStandardDeviation|2010 Change/ Return|2010 as aMultiple ofStandardDeviation|Original2009 Scenario(based onStandardDeviation for1989-2009Period)|
|10-Year Treasury|1990-2010|0.01|0.01|1.01|-0.01|0.56|0.01|
|S&P 500|1990-2010|0.19|0.20|1.05|0.13|0.67|0.20|
|USD/JPY|1990-2010|0.11|0.10|0.92|0.15|1.34|0.10|

Operational Risk Management AIG’s Operational Risk Management department (ORM) oversees AIG’s operational risk management practices.

ORM is responsible for establishing and maintaining the framework, principles and guidelines of AIG’s operational risk management program.

Each business unit is responsible for its operational risks and implementing the components of the operational risk management program to effectively identify, assess, monitor and mitigate such risks.

This responsibility includes developing and implementing policies, procedures, management oversight processes, and other governance-related activities consistent with AIG’s overall operational risk management process.

Senior operational risk executives in the businesses report to the Director of ORM and to business management.

This reporting structure facilitates development of business-specific knowledge of operational risk matters, while at the same time maintaining company-wide consistency in AIG’s overall approach to operational risk management.

A strong operational risk management program facilitates escalation and resolution of operational risk issues.

In order to accomplish this, AIG’s operational risk management program is designed to: ?

pro-actively address potential operational risk issues; ?

create transparency at all levels of the organization; and ?

assign clear ownership and accountability for addressing identified issues.

As part of the operational risk management framework, AIG has implemented a risk and control self assessment (RCSA) process.

The RCSA process is used to identify key operational risks and evaluate the effectiveness of existing controls to mitigate those risks.

Corrective action plans are developed to address any identified issues.

In 2010, business units continued to enhance their RCSA processes to perform more robust risk assessments.

American International Group, Inc. , and Subsidiaries AIG’s consolidated risk target is to maintain a minimum liquidity buffer such that AIG Parent’s liquidity needs under the ERM stress scenarios do not exceed 80 percent of AIG Parent’s overall liquidity sources over the specified two-year horizon.

If the 80 percent minimum threshold is projected to be breached over this defined time horizon, AIG will take appropriate actions to further increase liquidity sources or reduce liquidity needs to maintain the target threshold, although no assurance can be given that this would be possible under then-prevailing market conditions.

AIG expects to enter into additional capital maintenance agreements with its U. S.  insurance companies to manage the flow of capital and funds between AIG Parent and the insurance companies.

As a result of these ERM stress tests, AIG believes that it has sufficient liquidity at the AIG Parent level to satisfy future liquidity requirements and meet its obligations, including reasonably foreseeable contingencies or events.

See further discussion regarding AIG Parent and subsidiary liquidity considerations in Liquidity of Parent and Subsidiaries below.

Analysis of sources and uses of cash The following table presents selected data from AIG’s Consolidated Statement of Cash Flows:

| Years Ended December 31, (in millions) |2010|2009|2008|
|Summary:||||
|Net cash provided by (used in) operating activities|$16,910|$18,584|$-122|
|Net cash provided by (used in) investing activities|-10,225|5,778|47,176|
|Net cash used in financing activities|-9,261|-28,997|-40,734|
|Effect of exchange rate changes on cash|39|533|38|
|Change in cash|-2,537|-4,102|6,358|
|Cash at beginning of year|4,400|8,642|2,284|
|Reclassification of assets held for sale|-305|-140|-|
|Cash at end of year|$1,558|$4,400|$8,642|

Net cash provided by operating activities was positive for both 2010 and 2009 compared to negative in 2008, principally due to positive cash flows from AIG’s life insurance subsidiaries.

Insurance companies generally receive most premiums in advance of the payment of claims or policy benefits, but the ability of Chartis to generate positive cash flow is affected by operating expenses, the frequency and severity of losses under its insurance policies and policy retention rates.

Cash provided by Chartis operations was $1.9 billion for 2010 compared to $2.8 billion in 2009 as a reduction in claims paid was more than offset by declines in premiums collected, arising primarily from a decrease in domestic production.

Catastrophic events and significant casualty losses, the timing and effect of which are inherently unpredictable, reduce operating cash flow for Chartis operations.

Cash provided by AIG’s life insurance subsidiaries, including entities presented as discontinued operations, was $15.5 billion for 2010 compared to $9.1 billion in 2009 as growth in international markets was partially offset by a decrease in cash flows from domestic operations.

Cash flows provided from Financial Services including entities presented as discontinued operations were $1.4 billion and $5.4 billion for 2010 and 2009, respectively.

The decrease can be attributed in part to the continued wind-down of AIGFP’s businesses and portfolio.

Cash provided by Chartis was $2.8 billion for 2009 compared to $4.8 billion in 2008 as a reduction in claims paid was more than offset by reduced premiums collected.

Cash provided by life insurance operations, including entities presented as discontinued operations, was $9.1 billion for 2009 compared to $22 billion in 2008.

Reduced cash flows were primarily driven by the continuing impact of the negative events during the second half of 2008.

Cash provided from Financial Services, including entities presented as discontinued operations, was $5.4 billion for 2009 compared to $28.9 billion operating cash outflows in 2008, primarily related to collateral posting requirements.

Although many clients use both active and passive strategies, the application of these strategies differs greatly.

For example, clients may use index products to gain exposure to a market or asset class pending reallocation to an active manager.

This has the effect of increasing turnover of index AUM.

In addition, institutional non-ETP index assignments tend to be very large (multibillion dollars) and typically reflect low fee rates.

This has the potential to exaggerate the significance of net flows in institutional index products on BlackRock’s revenues and earnings.

Equity Year-end 2012 equity AUM of $1.845 trillion increased by $285.4 billion, or 18%, from the end of 2011, largely due to flows into regional, country-specific and global mandates and the effect of higher market valuations.

Equity AUM growth included $54.0 billion in net new business and $3.6 billion in new assets related to the acquisition of Claymore.

Net new business of $54.0 billion was driven by net inflows of $53.0 billion and $19.1 billion into iShares and non-ETP index accounts, respectively.

Passive inflows were offset by active net outflows of $18.1 billion, with net outflows of $10.0 billion and $8.1 billion from fundamental and scientific active equity products, respectively.

Passive strategies represented 84% of equity AUM with the remaining 16% in active mandates.

Institutional investors represented 62% of equity AUM, while iShares, and retail and HNW represented 29% and 9%, respectively.

At year-end 2012, 63% of equity AUM was managed for clients in the Americas (defined as the United States, Caribbean, Canada, Latin America and Iberia) compared with 28% and 9% managed for clients in EMEA and Asia-Pacific, respectively.

BlackRock’s effective fee rates fluctuate due to changes in AUM mix.

Approximately half of BlackRock’s equity AUM is tied to international markets, including emerging markets, which tend to have higher fee rates than similar U. S.  equity strategies.

Accordingly, fluctuations in international equity markets, which do not consistently move in tandem with U. S.  markets, may have a greater impact on BlackRock’s effective equity fee rates and revenues.

Fixed Income Fixed income AUM ended 2012 at $1.259 trillion, rising $11.6 billion, or 1%, relative to December 31, 2011.

Growth in AUM reflected $43.3 billion in net new business, excluding the two large previously mentioned low-fee outflows, $75.4 billion in market and foreign exchange gains and $3.0 billion in new assets related to Claymore.

Net new business was led by flows into domestic specialty and global bond mandates, with net inflows of $28.8 billion, $13.6 billion and $3.1 billion into iShares, non-ETP index and model-based products, respectively, partially offset by net outflows of $2.2 billion from fundamental strategies.

Fixed Income AUM was split between passive and active strategies with 48% and 52%, respectively.

Institutional investors represented 74% of fixed income AUM while iShares and retail and HNW represented 15% and 11%, respectively.

At year-end 2012, 59% of fixed income AUM was managed for clients in the Americas compared with 33% and 8% managed for clients in EMEA and AsiaPacific, respectively.

Multi-Asset Class Component Changes in Multi-Asset Class AUM


Question: what was the net change in airliner count during 2016?

def solution():
    # Define variables name and value
    new_aircraft = 55
    retired_aircraft = 71

    # Do math calculation to get the answer
    answer = new_aircraft - retired_aircraft

    return answer

PROPERTIES Flight Equipment and Fleet Renewal As of December 31, 2016, American operated a mainline fleet of 930 aircraft.

In 2016, we continued our extensive fleet renewal program, which has provided us with the youngest fleet of the major U. S.  network carriers.

During 2016, American took delivery of 55 new mainline aircraft and retired 71 aircraft.

We are supported by our wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle.

As of December 31, 2016, American Eagle operated 606 regional aircraft.

During 2016, we increased our regional fleet by 61 regional aircraft, we removed and placed in temporary storage one Embraer ERJ 140 aircraft and retired 41 other regional aircraft.

Mainline As of December 31, 2016, American’s mainline fleet consisted of the following aircraft:

CF INDUSTRIES HOLDINGS, INC.  123 Changes in common shares outstanding are as follows:

(1) Includes shares issued from treasury.

(2) Includes shares withheld to pay employee tax obligations upon the vesting of restricted stock.

Preferred Stock CF Holdings is authorized to issue 50 million shares of $0.01 par value preferred stock.

Our Second Amended and Restated Certificate of Incorporation, as amended, authorizes the Board, without any further stockholder action or approval, to issue these shares in one or more classes or series, and (except in the case of our Series A Junior Participating Preferred Stock, 500,000 shares of which are authorized and the terms of which were specified in the original certificate of incorporation of CF Holdings) to fix the rights, preferences and privileges of the shares of each wholly unissued class or series and any of its qualifications, limitations or restrictions.

In connection with the Plan (as defined below), 500,000 shares of preferred stock have been designated as Series B Junior Participating Preferred Stock.

The Series A Junior Participating Preferred Stock had been established in CF Holdings’ original certificate of incorporation in connection with our former stockholder rights plan that expired in 2015.

No shares of preferred stock have been issued.

Tax Benefits Preservation Plan On September 6, 2016, CF Holdings entered into a Tax Benefits Preservation Plan (the Plan) with Computershare Trust Company, N. A. , as rights agent.

The Plan is intended to help protect our tax net operating losses and certain other tax assets (the Tax Benefits) by deterring any person from becoming a "5-percent shareholder" (as defined in Section 382 of the Internal Revenue Code of 1986, as amended) (a 5% Shareholder).

Under the Plan, each share of common stock has attached to it one right.

Each right entitles the holder to purchase one one-thousandth of a share of our preferred stock designated as Series B Junior Participating Preferred Stock at a purchase price of $100, subject to adjustment.

Rights will only be exercisable under the limited circumstances specified in the Plan when there has been a distribution of the rights and such rights are no longer redeemable by CF Holdings.

A distribution of the rights would occur upon the earlier of (i) 10 business days following a public announcement that a person or group of affiliated or associated persons has become a 5% Shareholder (subject to certain exceptions described in the Plan) and (ii) 10 business days (or such later date as the Board shall determine) following the commencement of a tender offer or exchange offer that would result in a person or group of affiliated or associated persons becoming a 5% Shareholder (subject to certain exceptions described in the Plan).

The rights will expire at the earliest of (i) 5:00 P. M.  (New York City time) on September 5, 2017, or such later date and time (but not later than 5:00 P. M.  (New York City time) on September 5, 2019) as may be determined by the Board and approved by the stockholders of CF Holdings by a vote of the majority of the votes cast by the holders of shares entitled to vote thereon at a meeting of the stockholders of CF Holdings prior to 5:00 P. M.  (New York City time) on September 5, 2017, (ii) the time at which the rights are redeemed or exchanged as provided in the Plan, (iii) the time at which the Board determines that the Plan is no longer necessary or desirable for the preservation of Tax Benefits, and (iv) the close of business on the first day of a taxable year of CF Holdings to which the Board determines that no Tax Benefits may be carried forward.

In the event that a person or group of affiliated or associated persons becomes a 5% Shareholder (subject to certain exceptions described in the Plan), each holder of a right, other than such person, any member of such group or related person, all of whose rights will be null and void, will thereafter have the right to receive, upon exercise, common stock having a value equal to two times the exercise price of the right.

Stock-Based Compensation 2014 Equity and Incentive Plan On May 14, 2014, our shareholders approved the CF Industries Holdings, Inc.  2014 Equity and Incentive Plan (the 2014 Equity and Incentive Plan) which replaced the CF Industries Holdings, Inc.  2009 Equity and Incentive Plan.

Under the 2014 Equity and Incentive Plan, we may grant incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards (payable in cash or stock) and other stock-based awards to our officers, employees, consultants and independent contractors (including non-employee directors).

The purpose of the 2014 Equity and Incentive Plan is to provide an incentive for our employees, officers, consultants and non-employee directors that is aligned with the interests of our stockholders.

Share Reserve and Individual Award Limits The maximum number of shares reserved for the grant of awards under the 2014 Equity and Incentive Plan is the sum of (i) 13.9 million and (ii) the number of shares subject to outstanding awards under our predecessor plans to the extent such awards terminate or expire without delivery of shares.

For purposes of determining the number of shares of stock available for grant under the 2014 Equity and Incentive Plan, each option or stock appreciation right is counted against the reserve as one share.

Each share of stock granted, other than an option or a stock appreciation right, is counted against the reserve as 1.61 shares.

If any outstanding award expires or is settled in cash, any unissued shares subject to the award are again available for grant under the 2014 Equity and Incentive Plan.

Shares tendered in payment of the exercise price of an option and shares withheld by the Company or otherwise received by the Company to satisfy tax withholding obligations are not available for future grant under the 2014 Equity and Incentive Plan.

As of December 31, 2016, we had 11.7 million shares available for future awards under the 2014 Equity and Incentive Plan.

The 2014 Equity and Incentive Plan provides that no more than 5.0 million underlying shares may be granted to a participant in any one calendar year.

Stock Options Under the 2014 Equity and Incentive Plan and our predecessor plans, we granted to plan participants nonqualified stock options to purchase shares of our common stock.

The exercise price of these options is equal to the market price of our common stock on the date of grant.

The contractual life of each option is ten years and generally one-third of the options vest on each of the first three anniversaries of the date of grant.

The fair value of each stock option award is estimated using the Black-Scholes option valuation model.

Key assumptions used and resulting grant date fair values are shown in the following table.

||2016|2015|2014|
|Weighted-average assumptions:||||
|Expected volatility|39%|31%|33%|
|Expected term of stock options|4.3 Years|4.3 Years|4.3 Years|
|Risk-free interest rate|1.2%|1.5%|1.3%|
|Expected dividend yield|3.3%|1.9%|1.6%|
|Weighted-average grant date fair value|$8.97|$13.99|$12.77|

The expected volatility of our stock options is based on the combination of the historical volatility of our common stock and implied volatilities of exchange traded options on our common stock.

The expected term of options is estimated based on our historical exercise experience, post-vesting employment termination behavior and the contractual term.

The risk-free interest rate is based on the U. S.  Treasury Strip yield curve in effect at the time of grant for the expected term of the options.

Ammonia Segment Our ammonia segment produces anhydrous ammonia (ammonia), which is our most concentrated nitrogen fertilizer as it contains 82% nitrogen.

The results of our ammonia segment consist of sales of ammonia to external customers.

In addition, ammonia is the "basic" nitrogen product that we upgrade into other nitrogen products such as granular urea, UAN and AN.

We produce ammonia at all of our nitrogen manufacturing complexes.

The following table presents summary operating data for our ammonia segment, including the impact of our acquisition of the remaining 50% equity interest in CF Fertilisers UK:

(1) Ammonia represents 82% nitrogen content.

Nutrient tons represent the tons of nitrogen within the product tons.

Year Ended December 31, 2016 Compared to Year Ended December 31, 2015 Net Sales.

Total net sales in the ammonia segment decreased by $542 million, or 36%, to $981 million in 2016 from $1.52 billion in 2015 due primarily to a 33% decrease in average selling prices and a 4% decrease in sales volume.

These results include the impact of the CF Fertilisers UK acquisition, which increased net sales by $26 million, or 2%.

The remaining decrease in our ammonia net sales of $568 million, or 37%, was due primarily to lower average selling prices and sales volume.

Selling prices declined due to excess global nitrogen supply.

In addition, our selling prices reflect the impact of a higher proportion of export sales, the volumes of which increased as a result of the weak fall application season attributable to the combined impact of weather conditions and low crop prices on our customers' decisions related to applying fertilizer in the fall.

Sales volume in 2016 declined due to combination of the weak fall application season and the impact of upgrading additional ammonia production at our Donaldsonville facility into granular urea and UAN as a result of our capacity expansion projects coming on line at our Donaldsonville, Louisiana complex.

Cost of sales per ton in our ammonia segment averaged $248 per ton in 2016, including the impact of the CF Fertilisers UK acquisition, which averaged $220 per ton.

The remaining cost of sales per ton was $250 in 2016, a 16% decrease from the $296 per ton in 2015.

The decrease was due primarily to the impact of unrealized net mark-to-market gains on natural gas derivatives in 2016 compared to losses in 2015 and to the impact of lower realized natural gas costs in 2016.

This was partly offset by capacity expansion project start-up costs of $50 million and an increase in expansion project depreciation as a result of the new ammonia plants at our Donaldsonville and Port Neal facilities.


Question: What is the total value of Labor and related benefitsTransfer and disposal costs Maintenance and repairs Subcontractor costs in 2013?

def solution():
    # Define variables name and value
    labor_and_related_benefits = 2506
    transfer_and_disposal_costs = 973
    maintenance_and_repairs = 1181
    subcontractor_costs = 1182

    # Do math calculation to get the answer
    answer = labor_and_related_benefits + transfer_and_disposal_costs + maintenance_and_repairs + subcontractor_costs

    return answer

(3) Refer to Note 2 “Summary of Significant Accounting Principles and Practices ” for further information.13.

Employee Benefits p y Defined Contribution Savings Plans Aon maintains defined contribution savings plans for the benefit of its employees.

The expense recognized for these plans is included in Compensation and benefits in the Consolidated Statements of Income.

The expense for the significant plans in the U. S. , U. K. , Netherlands and Canada is as follows (in millions):

Pension and Other Postretirement Benefits The Company sponsors defined benefit pension and postretirement health and welfare plans that provide retirement, medical, and life insurance benefits.

The postretirement health care plans are contributory, with retiree contributions adjusted annually, aand the life insurance and pension plans are generally noncontributory.

The significant U. S. , U. K. , Netherlands and Canadian pension plans are closed to new entrants.

The following table summarizes the major components of our operating expenses, including the impact of foreign currency translation, for the years ended December 31 (dollars in millions):

Significant changes in our operating expenses are discussed below.

‰ Labor and related benefits — Significant items affecting the comparability of expenses for the periods presented include: ‰ Higher wages due to merit increases effective in the second quarter of 2013 and the effect of acquisitions, particularly the Greenstar acquisition in 2013; ‰ Incentive compensation expense fluctuations due to higher anticipated payouts for 2013 as compared to the prior year period and lower payouts for 2012 as compared to 2011; ‰ Increased contract labor in both 2013 and 2012 principally attributed to the recycling line of business; ‰ Headcount, exclusive of acquisitions, decreased in 2013 compared to the prior year period; conversely, headcount increased in 2012 when compared to 2011; and ‰ Non-cash charges incurred during the third quarter of 2013 and the second quarter of 2012 as a result of our partial withdrawals from underfunded multiemployer pension plans.

‰ Maintenance and repairs — The increase in 2013 compared to 2012 was driven by (i) the Greenstar acquisition and (ii) higher internal shop labor costs due in part to higher incentive compensation and merit increases.

The increase in 2012 as compared to 2011 is primarily due to (i) increased fleet maintenance costs, which include services provided by third-parties, tires, parts and internal shop labor costs and (ii) differences in the timing and scope of planned maintenance projects at our waste-to-energy facilities.

‰ Subcontractor costs — The decrease in 2013 was driven primarily by the volume decline associated with the loss of certain strategic accounts.

These decreases were offset, in part, by higher costs associated with the acquired RCI operations.

The increase in 2012 was driven in part by (i) the acquisition of Oakleaf in July 2011 and (ii) increased volumes related to Hurricane Sandy.

‰ Cost of goods sold — The increase in cost of goods sold in 2013 is due in large part to higher customer rebates resulting from higher volumes in our recycling commodity business driven primarily by the acquired Greenstar operations.

The significantly reduced market prices for recyclable commodities in 2012 drove the majority of the cost decrease when compared to the prior period.

‰ Fuel — The decrease in fuel expense in 2013 compared to 2012 was due to (i) a retroactive CNG fuel excise tax credit recognized in the first quarter of 2013; (ii) reduced fuel purchases due to reduced collection volumes; (iii) lower costs as we convert our fleet to CNG vehicles and (iv) lower diesel fuel prices.

The increase in fuel expense in 2012 compared to 2011 was mainly driven by higher diesel fuel prices.

Labor and related benefits — Factors affecting the year-over-year changes in our labor and related benefits costs include: ‰ Higher incentive compensation costs of $94 million in 2013 and $73 million in 2011, as compared with 2012, as a result of higher anticipated payouts.

‰ Higher non-cash compensation expense recognized in 2013 as compared to 2012, in part due to the payout of performance share units granted in 2010, which was approved in 2013.

Expense associated with these awards had been reversed in 2012 when it no longer appeared probable that threshold performance would be achieved.

‰ Cost savings of $45 million in 2013 driven primarily from our July 2012 restructuring.

Professional fees — Consulting fees declined year over year as company-wide initiatives, which began in 2011, were implemented; partially offset by higher legal fees in 2012 as compared with 2013 and 2011.

Provision for bad debts — Our provision for bad debts decreased in 2013 as a result of the collection of certain fully reserved receivables related to our Puerto Rico operations.

Additionally, many of the billing delay issues we experienced throughout fiscal year 2012 with certain of our strategic account customers have been resolved, favorably affecting our year-over-year bad debt comparisons.

Other — In 2013, controllable costs associated with (i) building and equipment; (ii) advertising; (iii) computer and telecommunication; (iv) travel and entertainment and (v) seminars and education have declined primarily as a result of our July 2012 restructuring and continued focus on cost-control initiatives.

In 2012, we experienced decreases in (i) litigation settlement costs and (ii) insurance and claims.

These decreases were partially offset by increases in (i) computer and telecommunications costs, due in part to improvements we are making to our information technology systems and (ii) building and equipment costs, which include rental and utilities.

Depreciation and Amortization Depreciation and amortization includes (i) depreciation of property and equipment, including assets recorded for capital leases, on a straight-line basis from three to 50 years; (ii) amortization of landfill costs, including those incurred and all estimated future costs for landfill development, construction and asset retirement costs arising from closure and post-closure, on a units-of-consumption method as landfill airspace is consumed over the total estimated remaining capacity of a site, which includes both permitted capacity and expansion capacity that meets our Company-specific criteria for amortization purposes; (iii) amortization of landfill asset retirement costs arising from final capping obligations on a units-of-consumption method as airspace is consumed over the estimated capacity associated with each final capping event and (iv) amortization of intangible assets with a definite life, using either a 150% declining balance approach or a straight-line basis over the definitive terms of the related agreements, which are generally from two to 15 years depending on the type of asset.

The following table summarizes the components of our depreciation and amortization costs for the years ended December 31 (dollars in millions):

WASTE MANAGEMENT, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) not anticipate that the final resolution of the Central States Pension Plan matter could be material to the Company’s business, financial condition or liquidity; however, such loss could have a material adverse effect on our cash flows and, to a lesser extent, our results of operations, for a particular reporting period.

Similarly, we also do not believe that any future withdrawals, individually or in the aggregate, from the multiemployer pension plans to which we contribute, could have a material adverse effect on our business, financial condition or liquidity.

However, such withdrawals could have a material adverse effect on our results of operations or cash flows for a particular reporting period, depending on the number of employees withdrawn in any future period and the financial condition of the multiemployer pension plan(s) at the time of such withdrawal(s).

Tax Matters — We are currently in the examination phase of IRS audits for the tax years 2013 and 2014 and expect these audits to be completed within the next 15 and 27 months, respectively.

We participate in the IRS’s Compliance Assurance Process, which means we work with the IRS throughout the year in order to resolve any material issues prior to the filing of our annual tax return.

We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2005, with the exception of affirmative claims in one jurisdiction that date back to 2000.

We are not currently under audit in Canada and, due to the expiration of statutes of limitations, all tax years prior to 2009 are closed.

In July 2011, we acquired Oakleaf, which is subject to potential IRS examinations for the years 2010 and 2011.

Pursuant to the terms of our acquisition of Oakleaf, we are entitled to indemnification for Oakleaf’s pre-acquisition period tax liabilities.

We maintain a liability for uncertain tax positions, the balance of which management believes is adequate.

Results of audit assessments by taxing authorities are not currently expected to have a material adverse impact on our results of operations or cash flows.12.

Restructuring The following table summarizes pre-tax restructuring charges, including employee severance and benefit costs and other charges, for the years ended December 31 for the respective periods (in millions):

During the year ended December 31, 2013, we recognized a total of $18 million of pre-tax restructuring charges, of which $7 million was related to employee severance and benefit costs, including costs associated with our acquisitions of Greenstar and RCI and our 2012 restructurings discussed below.

The remaining charges were primarily related to operating lease obligations for property that will no longer be utilized.

We do not expect to incur any material charges associated with our past restructuring efforts in future periods.2012 Restructurings — In July 2012, we announced a reorganization of operations, designed to streamline management and staff support and reduce our cost structure, while not disrupting our front-line operations.

Principal organizational changes included removing the management layer of our four geographic Groups, each of which previously constituted a reportable segment, and consolidating and reducing the number of our geographic Areas through which we evaluate and oversee our Solid Waste subsidiaries from 22 to 17.

This reorganization eliminated approximately 700 employee positions throughout the Company, including positions at both the management and support level.

Voluntary separation arrangements were offered to many employees.

Additionally, in 2012, we recognized employee severance and benefits restructuring charges associated with the reorganization of Oakleaf discussed below that began in 2011 along with certain other actions taken by the Company in early 2012.