credit facility amended in 2013 and 2012.
 in march 2014 company 2019s credit facility amended to extend maturity date to march 2019.
 aggregate commitment is $ 3. 990 billion ( 201c2014 credit facility 201d ).
 2014 credit facility permits company to request additional $ 1. 0 billion borrowing capacity subject to lender credit approval increasing overall size 2014 credit facility to aggregate principal amount not to exceed $ 4. 990 billion.
 interest on borrowings outstanding accrues at rate based on applicable london interbank offered rate plus spread.
 2014 credit facility requires company not to exceed maximum leverage ratio ( ratio of net debt to earnings before interest  taxes depreciation amortization net debt equals total debt less unrestricted cash ) of 3 to 1 satisfied with ratio of less than 1 to 1 at december 31 , 2014.
 2014 credit facility provides back-up liquidity funds ongoing working capital for general corporate purposes funds investment opportunities.
 at december 31 , 2014 company had no amount outstanding under 2014 credit facility.
 commercial paper program.
 on october 14 , 2009 blackrock established commercial paper program ( 201ccp program 201d ) company could issue unsecured commercial paper notes ( 201ccp notes 201d ) private placement basis up to maximum aggregate amount outstanding of $ 3. 0 billion.
 blackrock increased maximum aggregate amount borrowed under cp program to $ 3. 5 billion in 2011 to $ 3. 785 billion in 2012.
 in april 2013 blackrock increased maximum aggregate amount for company issue unsecured cp notes private-placement basis up to maximum aggregate amount outstanding of $ 3. 990 billion.
 cp program supported by 2014 credit facility.
 at december 31 , 2014 blackrock had no cp notes outstanding.
long-term borrowings carrying value fair value estimated market prices at december 31 , 2014 included : ( in millions ) maturity amount unamortized discount carrying value fair value.
 long-term borrowings at december 31 , 2013 had carrying value $ 4. 939 billion fair value $ 5. 284 billion determined market prices end december 2013.
 2024 notes.
 march 2014 company issued $ 1. 0 billion principal amount 3. 50% ( 3. 50 % ) senior unsecured unsubordinated notes maturing march 18, 2024 ( 201c2024 notes 201d ).
 net proceeds 2024 notes used to refinance certain indebtedness matured in fourth quarter of 2014.
 interest payable semi-annually arrears on march 18 and september 18 each year approximately $ 35 million per year.
 2024 notes may be redeemed prior to maturity whole or part at option company at 201cmake-whole 201d redemption price.
 2024 notes issued at discount of $ 3 million amortized over term of notes.
 company incurred approximately $ 6 million of debt issuance costs amortized over term of 2024 notes.
 at december 31 , 2014 $ 6 million of unamortized debt issuance costs included in other assets on consolidated statement of financial condition.
 2015 and 2022 notes.
 may 2012 company issued $ 1. 5 billion principal amount unsecured unsubordinated obligations.
 notes issued as two separate series senior debt securities including $ 750 million of 1. 375% ( 1. 375 % ) notes maturing in june 2015 ( 201c2015 notes 201d ) and $ 750 million of 3. 375% ( 3. 375 % ) notes maturing in june 2022 ( 201c2022 notes 201d ).
net proceeds used fund repurchase of blackrock 2019s common stock series b preferred from barclays affiliates for general corporate purposes.
 interest on 2015 notes 2022 notes of approximately $ 10 million and $ 25 million per year payable semi-annually on june 1 and december 1 each year commenced december 1 , 2012.
 2015 notes and 2022 notes may be redeemed prior to maturity in whole or in part at option company at 201cmake-whole 201d redemption price.
 201cmake-whole 201d redemption price represents price  subject to specific terms of 2015 and 2022 notes related indenture greater of par value and b ) present value of future payments not paid because of early redemption discounted at fixed spread over comparable treasury security.
 2015 notes and 2022 notes issued at discount of $ 5 million amortized over term of notes.
 company incurred approximately $ 7 million of debt issuance costs amortized over terms of 2015 notes 2022 notes.
 at december 31 , 2014 $ 4 million of unamortized debt issuance costs included in other assets on consolidated statement of financial condition.
 2021 notes.
 in may 2011  company issued $ 1. 5 billion in aggregate principal amount unsecured unsubordinated obligations.
 notes issued as two separate series of senior debt securities  including $ 750 million of 4. 25% ( 4. 25 % ) notes maturing in may 2021 and $ 750 million of floating rate notes ( 201c2013 floating rate notes 201d ) repaid in may 2013 at maturity.
 net proceeds offering used fund repurchase of blackrock 2019s series b preferred from affiliates of merrill lynch & co. , inc.
 ( 201cmerrill lynch 201d ).
 interest

( in millions )                   | maturity amount | unamortized discount | carrying value | fair value
--------------------------------- | --------------- | -------------------- | -------------- | ----------
1.375% ( 1.375 % ) notes due 2015 | $ 750           | $ 2014               | $ 750          | $ 753
6.25% ( 6.25 % ) notes due 2017   | 700             | -1 ( 1 )             | 699            | 785
5.00% ( 5.00 % ) notes due 2019   | 1000            | -2 ( 2 )             | 998            | 1134
4.25% ( 4.25 % ) notes due 2021   | 750             | -3 ( 3 )             | 747            | 825
3.375% ( 3.375 % ) notes due 2022 | 750             | -3 ( 3 )             | 747            | 783
3.50% ( 3.50 % ) notes due 2024   | 1000            | -3 ( 3 )             | 997            | 1029
total long-term borrowings        | $ 4950          | $ -12 ( 12 )         | $ 4938         | $ 5309


interest expense.
 2014 vs.
 2013 interest incurred decreased $ 9. 5.
 decrease due to lower average interest rate debt portfolio reduced interest by $ 13  offset by higher average debt balance increased interest by $ 6.
 change in capitalized interest driven by higher carrying value in construction progress.
 2013 vs.
 2012 interest incurred increased $ 13. 7.
 increase driven by higher average debt balance for $ 41 offset by lower average interest rate debt portfolio of $ 24.
 change in capitalized interest driven by decrease in project spending lower average interest rate.
 effective tax rate effective tax rate equals income tax provision divided by income from continuing operations before taxes.
 refer to note 22 , income taxes consolidated financial statements for effective tax rate.
 2014 vs.
 2013 gaap basis effective tax rate was 27. 0% ( 27. 0 % ) and 22. 8% ( 22. 8 % ) in 2014 and 2013 .
 effective tax rate higher in current year due to goodwill impairment charge of $ 305. 2 not deductible for tax purposes chilean tax reform in september 2014 increased income tax expense by $ 20. 6.
 impacts offset by income tax benefit of $ 51. 6 associated with losses from transactions tax election in non-u.
 subsidiary.
 prior year rate included income tax benefits of $ 73. 7 related to business restructuring and cost reduction plans and $ 3. 7 for advisory costs.
 refer to note 4 , business restructuring and cost reduction actions ; note 9 , goodwill ; note 22 , income taxes note 23  supplemental information consolidated financial statements for transactions.
 non-gaap basis effective tax rate was 24. 0% ( 24. 0 % ) and 24. 2% ( 24. 2 % ) in 2014 and 2013  respectively.
 2013 vs.
2012 gaap basis effective tax rate was 22. 8% ( 22. 8 % ) and 21. 9% ( 21. 9 % ) in 2013 and 2012  respectively.
 effective rate 2013 includes income tax benefits of $ 73. 7 to business restructuring and cost reduction plans and $ 3. 7 for advisory costs.
 effective rate 2012 includes income tax benefits of $ 105. 0 to business restructuring and cost reduction plans, $ 58. 3 second quarter spanish tax ruling $ 3. 7 customer bankruptcy charge offset by income tax expense of $ 43. 8 first quarter spanish tax settlement $ 31. 3 gain on previously held equity interest in nanomaterials.
 refer to note 4 , business restructuring and cost reduction actions ; note 5, business combinations ; note 22 , income taxes ; note 23 , supplemental information consolidated financial statements for details transactions.
 non-gaap basis effective tax rate was 24. 2% ( 24. 2 % ) in 2013 and 2012.
 discontinued operations second quarter of 2012 board of directors authorized sale of homecare business part of merchant gases operating segment.
 in 2012 sold majority of homecare business to linde group for sale proceeds of 20ac590 million ( $ 777 ) recognized gain of $ 207. 4 ( $ 150. 3 after-tax , or $. 70 per share ).
 impairment charge of $ 33. 5 ( $ 29. 5 after-tax , or $. 14 per share ) recorded to write down remaining business primarily in united kingdom and ireland  to estimated net realizable value.
 in 2013  recorded additional charge of $ 18. 7 ( $ 13. 6 after-tax , or $. 06 per share ) to update estimate of net realizable value.
 in 2014  gain of $ 3.9 recognized for sale of remaining homecare business settlement of contingencies on sale to linde group.
 refer to note 3 , discontinued operations , consolidated financial statements for additional details on business.

| 2014    | 2013    | 2012
--------------------------- | ------- | ------- | -------
interest incurred           | $ 158.1 | $ 167.6 | $ 153.9
less : capitalized interest | 33.0    | 25.8    | 30.2
interest expense            | $ 125.1 | $ 141.8 | $ 123.7


74 2013 ppg annual report form 10-k 22.
 separation and merger transaction on january 28 , 2013 company completed announced separation of commodity chemicals business merger of wholly-owned subsidiary  eagle spinco inc. with subsidiary of georgia gulf corporation in tax ef ficient reverse morris trust transaction ( 201ctransaction 201d ).
 pursuant merger eagle spinco  entity holding ppg's former commodity chemicals business became wholly-owned subsidiary of georgia gulf.
 closing of merger followed expiration of related exchange offer satisfaction of certain other conditions.
 combined company formed by uniting georgia gulf with ppg's former commodity chemicals business named axiall corporation ( 201caxiall 201d ).
 ppg holds no ownership interest in axiall.
 ppg received necessary ruling from internal revenue service transaction generally tax free to ppg shareholders in united states canada.
 under terms exchange offer 35249104 shares of eagle spinco common stock available for distribution in exchange for shares of ppg common stock accepted offer.
 following merger each share of eagle spinco common stock converted into right to receive one share of axiall corporation common stock.
 ppg shareholders who tendered shares of ppg common stock offer received 3. 2562 shares of axiall common stock for each share of ppg common stock accepted for exchange.
 ppg to accept maximum of 10825227 shares of ppg common stock for exchange offer reduced outstanding shares by approximately 7% ( 7 % ).
 completion of exchange offer non-cash financing transaction resulted in increase in "treasury stock" at cost of $ 1. 561 billion based on ppg closing stock price on january 25 , 2013.
under terms transaction , ppg received $ 900 million cash and 35. 2 million shares of axiall common stock ( market value of $ 1. 8 billion on january 25 , 2013 ) distributed to ppg shareholders by exchange offer described.
 ppg received $ 67 million in cash for preliminary post-closing working capital adjustment transaction agreements.
 net assets transferred to axiall included $ 27 million cash on books business transferred.
 transaction  ppg transferred environmental remediation liabilities , defined benefit pension plan assets liabilities other post-employment benefit liabilities related to commodity chemicals business to axiall.
 during first quarter of 2013 , ppg recorded gain of $ 2. 2 billion on transaction reflecting excess of sum cash proceeds received and cost ( closing stock price on january 25 , 2013 ) of ppg shares tendered accepted in exchange for 35. 2 million shares of axiall common stock over net book value of net assets of ppg's former commodity chemicals business.
 transaction resulted in net partial settlement loss of $ 33 million associated with spin out termination of defined benefit pension liabilities transfer of other post-retirement benefit liabilities transaction.
 company incurred $ 14 million of pretax expense  for professional services related to transaction in 2013 approximately $ 2 million of net expense related to certain retained obligations post-closing adjustments under transaction agreements.
 net gain on transaction includes these related losses and expenses.
 results of operations and cash flows of ppg's former commodity chemicals business for january 2013 net gain transaction reported as results from discontinued operations for year -ended december 31 , 2013.
prior periods results operations cash flows of ppg's former commodity chemicals business reclassified from presented as results discontinued operations.
 ppg provide axiall transition services for 24 months following closing date transaction.
 services include logistics  purchasing  finance information technology human resources tax payroll processing.
 net sales income before income taxes of commodity chemicals business reclassified reported as discontinued operations presented in table below:.
 income from discontinued operations , net of tax $ 2197 $ 228 $ 250 less : net income attributable to non- controlling interests  discontinued operations $ 2014 $ ( 13 ) $ ( 13 ) net income from discontinued operations ( attributable to ppg ) $ 2197 $ 215 $ 237 during 2012  $ 21 million of business separation costs included within "income from discontinued operations , net. " notes to consolidated financial statements

millions                                                                            | year-ended 2013 | year-ended 2012 | year-ended 2011
----------------------------------------------------------------------------------- | --------------- | --------------- | ---------------
net sales                                                                           | $ 108           | $ 1688          | $ 1732
income from operations before income tax                                            | $ 2014          | $ 345           | $ 376
net gain from separation and merger of commodity chemicals business                 | 2192            | 2014            | 2014
income tax expense                                                                  | -5 ( 5 )        | 117             | 126
income from discontinued operations net of tax                                      | $ 2197          | $ 228           | $ 250
less : net income attributable to non-controlling interests discontinued operations | $ 2014          | $ -13 ( 13 )    | $ -13 ( 13 )
net income from discontinued operations ( attributable to ppg )                     | $ 2197          | $ 215           | $ 237


stock option gains previously deferred by participants to terms deferred compensation plan earnings on deferred amounts.
 result of provisions of american jobs creation act , participants had opportunity until december 31 , 2005 to elect to withdraw amounts previously deferred.
 11.
 lease commitments company leases facilities , equipment software under various operating leases expire at various dates through 2022.
 lease agreements include renewal escalation clauses require company to pay taxes  insurance maintenance costs.
 total rental expense under operating leases was approximately $ 43 million in fiscal 2007, $ 45 million in fiscal 2006 $ 44 million in fiscal 2005.
 schedule of future minimum rental payments required under long-term operating leases at november 3, 2007 : fiscal years operating leases.
 12.
 commitments contingencies tentative settlement of sec 2019s previously announced stock option investigation in company 2019s 2004 form 10-k filing  company disclosed securities and exchange com- mission ( sec ) had initiated inquiry into stock option granting practices  focusing on options granted shortly before issuance of favorable financial results.
 on november 15 , 2005 , company announced reached a tentative settlement with sec.
 since notice inquiry company has cooperated with sec.
 in november 2005 , company president and ceo , mr.
 jerald g.
 fishman , made offer of settlement to staff sec.
 settlement submitted to commission for approval.
 no assurance final settlement will be approved.
 sec 2019s inquiry focused on two separate issues.
 first issue concerned company 2019s disclosure regarding grants of options to employees and directors prior to release of favorable financial results.
 specifically issue related to options granted to employees ( including officers ) of company on november 30 , 1999 and to employees including officers and directors of company on november 10 , 2000.
 second issue concerned grant dates for options granted to employees ( including officers ) in 1998 and 1999 , and grant date for options granted to employees including officers directors in 2001.
 settlement conclude appropriate grant date for september 4, 1998 options should have been september 8th ( one trading day later than date used to price options ) ; appropriate grant date for november 30 , 1999 options should have been november 29th ( one trading day earlier than date used ) ; appropriate grant date for july 18 , 2001 options should been july 26th ( five trading days after original date ).
 analog devices , inc.
 notes to consolidated financial statements 2014 ( continued )

fiscal years | operating leases
------------ | ----------------
2008         | $ 30774
2009         | $ 25906
2010         | $ 13267
2011         | $ 5430
2012         | $ 3842
later years  | $ 12259
total        | $ 91478


entergy new orleans , inc.
 management's financial discussion analysis results of operations net income ( loss ) 2004 compared to 2003 net income increased $ 20. 2 million due to higher net revenue.
 2003 compared to 2002 had net income of $ 7. 9 million in 2003 compared to net loss in 2002.
 increase due to higher net revenue lower interest expense offset by higher operation and maintenance expenses depreciation amortization expenses.
 net revenue 2004 compared to 2003 net revenue ' measure of gross margin consists of operating revenues net of 1 ) fuel , fuel-related  purchased power expenses 2 ) other regulatory credits.
 analysis of change in net revenue comparing 2004 to 2003.
 increase in base rates effective june 2003.
 rate increase discussed in note 2 to domestic utility companies system energy financial statements.
 volume/weather variance due to increased billed electric usage of 162 gwh in industrial service sector.
 increase partially offset by milder weather in residential and commercial sectors.
 2004 deferrals variance due to deferral of voluntary severance plan fossil plant maintenance expenses in accordance with stipulation approved by city council in august 2004.
 stipulation allows for recovery of costs through amortization of regulatory asset.
 voluntary severance plan fossil plant maintenance expenses amortized over five-year period effective january 2004 and january 2003.
 formula rate plan discussed in note 2 to domestic utility companies system energy financial statements.
 price applied to unbilled electric sales variance due to increase in fuel price applied unbilled sales.

| ( in millions )
---------------------------------------- | ---------------
2003 net revenue                         | $ 208.3
base rates                               | 10.6
volume/weather                           | 8.3
2004 deferrals                           | 7.5
price applied to unbilled electric sales | 3.7
other                                    | 0.6
2004 net revenue                         | $ 239.0


masco corporation notes to consolidated financial statements continued ).
 segment information 1 included in net sales were export sales from u. s.
 of $ 229 million , $ 241 million $ 246 million in 2012  2011 2010 .
 excluded from net sales were intra-company sales between segments approximately two percent of net sales in 2012  2011 2010.
 included in net sales were sales to one customer of $ 2143 million, $ 1984 million $ 1993 million in 2012  2011 2010.
 net sales included in segments : cabinets related products plumbing products  decorative architectural products other specialty products.
 4 net sales from company 2019s operations in u. s.
 were $ 5793 million , $ 5394 million $ 5618 million in 2012 , 2011 2010 .
 net sales  operating ( loss ) profit  property additions depreciation amortization expense for 2012  2011 2010 excluded results of businesses reported discontinued operations in 2012 2011 2010.
 6 included in segment operating profit ( loss ) for 2012 was impairment charge for other intangible assets other specialty products 2013 $ 42 million.
 included in segment operating ( loss ) profit for 2011 impairment charges for goodwill other intangible assets : cabinets related products 2013 $ 44 million plumbing products 2013 $ 1 million decorative architectural products 2013 $ 75 million ; other specialty products 2013 $ 374 million.
 included in segment operating ( loss ) profit for 2010 impairment charges for goodwill other intangible assets plumbing products 2013 $ 1 million ; installation and other services 2013 $ 697 million.
 7 general corporate expense , net included expenses not specifically attributable to company 2019s segments.
( 8 ) charge for litigation settlement  net in 2012 relates to business in installation and services segment 2011 relates to business units in cabinets and related products specialty products segments.
 ( 9 ) long-lived assets of company 2019s operations in u. s.
 and europe were $ 2795 million and $ 567 million , $ 2964 million and $ 565 million  $ 3684 million and $ 617 million at december 31 , 2012 , 2011 2010 , respectively.
 ( 10 ) segment assets for 2012 and 2011 excluded assets of businesses reported as discontinued operations in years.
.
 severance costs as part of company 2019s continuing review of operations  actions taken during 2012 , 2011 2010 to respond to market conditions.
 company recorded charges related to severance and early retirement programs of $ 36 million , $ 17 million $ 14 million for years ended december 31 , 2012 , 2011 2010 .
 such charges reflected in statement of operations in selling , general administrative expenses paid when incurred.
.
 other income ( expense ) , net other  included was as follows  in millions:.
 other items net included realized foreign currency transaction losses of $ 2 million, $ 5 million and $ 2 million in 2012 , 2011 and 2010  other miscellaneous items.

| 2012     | 2011     | 2010
------------------------------------------------ | -------- | -------- | --------
income from cash and cash investments            | $ 6      | $ 8      | $ 6
other interest income                            | 1        | 1        | 1
income from financial investments net ( note e ) | 24       | 73       | 9
other items net                                  | -4 ( 4 ) | -5 ( 5 ) | -9 ( 9 )
total other net                                  | $ 27     | $ 77     | $ 7


35% ( 35 % ) due to undistributed foreign earnings for which no u. s.
 taxes are provided because earnings intended to be indefinitely reinvested outside the u. s.
 as of september 24 , 2011  company had deferred tax assets from deductible temporary differences , tax losses  tax credits of $ 3. 2 billion , deferred tax liabilities of $ 9. 2 billion.
 management believes likely not forecasted income , including income result of tax planning strategies, with future reversals of existing taxable temporary differences, will be sufficient to fully recover deferred tax assets.
 company will continue to evaluate realizability of deferred tax assets quarterly by assessing need for amount valuation allowance.
 internal revenue service ( 201cirs 201d ) completed field audit of company 2019s federal income tax returns for years 2004 through 2006 proposed adjustments.
 company contested certain these adjustments through irs appeals office.
 irs currently examining years 2007 through 2009.
 all irs audit issues for years prior to 2004 resolved.
 company subject to audits by state , local , and foreign tax authorities.
 management believes adequate provisions made for adjustments from tax examinations.
 outcome of tax audits cannot be predicted with certainty.
 if issues addressed in company 2019s tax audits resolved not consistent with management expectations company could be required to adjust provision for income taxes in period such resolution occurs.
 liquidity and capital resources following table presents selected financial information and statistics as of for three years ended september 24 , 2011 ( in millions ) :.
 cash , cash equivalents and marketable securities increased $ 30. 6 billion or 60% ( 60 % ) during 2011.
 principal components of net increase was cash generated by operating activities of $ 37.5 billion  partially offset by payments for acquisition of property  plant equipment of $ 4. 3 billion  payments for acquisition intangible assets of $ 3. 2 billion payments business acquisitions  net of cash acquired of $ 244 million.
 company believes existing balances of cash  cash equivalents marketable securities sufficient to satisfy working capital needs capital asset purchases outstanding commitments liquidity requirements existing operations over next 12 months.
 company 2019s marketable securities investment portfolio invested primarily in highly rated securities policy limits credit exposure to one issuer.
 company 2019s investment policy requires investments to be investment grade objective minimizing potential risk of principal loss.
 as of september 24 , 2011 and september 25 , 2010 , $ 54. 3 billion and $ 30. 8 billion  respectively  of company 2019s cash  cash equivalents marketable securities held by foreign subsidiaries generally based in u. s.
 dollar-denominated holdings.
 amounts held by foreign subsidiaries subject to u. s.
 income taxation on repatriation to u.
 capital assets company 2019s capital expenditures were $ 4. 6 billion during 2011  approximately $ 614 million for retail store facilities $ 4. 0 billion for other capital expenditures including product tooling manufacturing

| 2011    | 2010    | 2009
----------------------------------------------- | ------- | ------- | -------
cash cash equivalents and marketable securities | $ 81570 | $ 51011 | $ 33992
accounts receivable net                         | $ 5369  | $ 5510  | $ 3361
inventories                                     | $ 776   | $ 1051  | $ 455
working capital                                 | $ 17018 | $ 20956 | $ 20049
annual operating cash flow                      | $ 37529 | $ 18595 | $ 10159


u. s.
 equity securities and international equity securities categorized as level 1 traded on active national international exchanges valued at closing prices last trading day of year.
 for u.
 not traded on active exchange or if closing price not available trustee obtains indicative quotes from pricing vendor , broker or investment manager.
 securities categorized as level 2 if custodian obtains corroborated quotes from pricing vendor or categorized as level 3 if custodian obtains uncorroborated quotes from broker or investment manager.
 commingled equity funds categorized as level 1 traded on active national international exchanges valued at closing prices on last trading day of year.
 for commingled equity funds not traded on active exchange or if closing price not available trustee obtains indicative quotes from pricing vendor , broker or investment manager.
 securities categorized as level 2 if custodian obtains corroborated quotes from pricing vendor.
 fixed income investments categorized as level 2 valued by trustee using pricing models use verifiable observable market data (. interest rates yield curves commonly quoted intervals credit spreads ) bids provided by brokers or dealers or quoted prices of securities with similar characteristics.
 fixed income investments categorized at level 3 when valuations using observable inputs unavailable.
 trustee obtains pricing based on indicative quotes or bid evaluations from vendors  brokers or investment manager.
 commodities traded on active commodity exchange valued at closing prices on last trading day of certain commingled equity funds  equity mutual funds  valued using nav. aa thenavaa valuations based on underlying investments typically redeemable within 90 days.
 private equity funds consist of partnership and co-investment funds.
navaa based on valuation models of underlying securities  includes unobservable inputs be corroborated using verifiable observable market data.
 funds typically have redemption periods between eight and 12 years.
 real estate funds consist of partnerships  most closed-end funds  for navaa based on valuationmodels and periodic appraisals.
 funds typically have redemption periods between eight and 10 years.
 hedge funds consist of direct hedge funds forwhich thenavaa generally based on valuation of underlying investments.
 redemptions in hedge funds based on specific terms of each fund range from minimum one month to several months.
 contributions and expected benefit payments funding of our qualified defined benefit pension plans determined in accordance with erisa , amended by ppa , consistent with cas and internal revenue code rules.
 no material contributions to qualified defined benefit pension plans during 2017.
 will make contributions of $ 5. 0 billion to qualified defined benefit pension plans in 2018 including required and discretionary contributions. not expect material qualified defined benefit cash funding required until 2021. plan to fund contributions using mix of cash on hand and commercial paper.
 not anticipate need to capital structure and resources allow to issue new debt if circumstances change.
 following table presents estimated future benefit payments  reflect expected future employee service , as of december 31 , 2017 ( in millions ) :.
 defined contribution plans wemaintain number of defined contribution plans  most with 401 ( k ) features  cover substantially all of employees.
 under provisions 401 ( k ) plans wematchmost employees 2019 eligible contributions at rates specified in plan documents.
 contributions were $ 613 million in 2017 , $ 617 million in 2016 and $ 393 million in 2015  majority funded using common stock.
 defined contribution plans held approximately 35.5 million 36. 9 million shares common stock as of december 31  2017 2016.

| 2018   | 2019   | 2020   | 2021   | 2022   | 2023 2013 2027
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | --------------
qualified defined benefit pension plans  | $ 2450 | $ 2480 | $ 2560 | $ 2630 | $ 2700 | $ 14200
retiree medical and life insurance plans | 180    | 180    | 180    | 180    | 180    | 820


equity compensation plan information table presents equity securities available for issuance under equity compensation plans as of december 31 , 2017.
 equity compensation plan information plan category number of securities to be issued upon exercise of outstanding options , warrants and rights ( 1 ) weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under plans ( excluding securities reflected in column ( a ) ) b ) c ) equity compensation plans approved by security holders 448859 $ 0. 00 4087587 equity compensation plans not approved by security holders ( 2 ) 2014.
 1 includes grants made under huntington ingalls industries , inc.
 2012 long-term incentive stock plan ( "2012 plan" ) approved by stockholders on may 2 , 2012 and huntington ingalls industries , inc.
 2011 long-term incentive stock plan ( "2011 plan" )  approved by sole stockholder of prior to spin-off from northrop grumman corporation.
 27123 were stock rights granted under 2011 plan.
 number includes 28763 stock rights , 3075 restricted stock rights , and 389898 restricted performance stock rights granted under 2012 plan  target performance achievement.
 no awards made under plans not approved by security holders.
 item 13.
 certain relationships and related transactions , and director independence information relationships transactions director independence will be incorporated by reference to proxy statement for 2018 annual meeting of stockholders filed within 120 days after end of company 2019s fiscal year.
 item 14.
 principal accountant fees and services information will be incorporated by reference to proxy statement for 2018 annual meeting of stockholders filed within 120 days after end of company 2019s fiscal year.

plan category                                                    | number of securities to be issued upon exercise of outstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-average exercise price of outstanding optionswarrants and rights | number of securities remaining available for future issuance under equity compensation plans ( excluding securitiesreflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders           | 448859                                                                                | $ 0.00                                                                    | 4087587
equity compensation plans not approved by security holders ( 2 ) | 2014                                                                                | 2014                                                                      | 2014
total                                                            | 448859                                                                                | $ 0.00                                                                    | 4087587


market risk management 2013 equity other investment equity investment risk is risk of potential losses with investing in private and public equity markets.
 addition to extending credit  taking deposits  securities underwriting trading financial instruments  we make manage direct investments in variety transactions including management buyouts  recapitalizations growth financings in variety industries.
 also have investments in affiliated and non-affiliated funds similar investments in private equity debt and equity-oriented hedge funds.
 economic book value of these investments other assets loan servicing rights affected by changes in market factors.
 primary risk measurement for equity other investments is economic capital.
 economic capital is common measure of risk for credit , market operational risk.
 estimate of potential value depreciation over one year horizon with solvency expectations of institution rated single-a by credit rating agencies.
 illiquid nature of investments can challenge to determine fair values.
 see note 7 fair value in notes to consolidated financial statements in item 8 of report for additional information.
 various pnc business units manage our equity other investment activities.
 businesses responsible for making investment decisions within approved policy limits guidelines.
 summary of equity investments follows : table 54 : equity investments summary in millions december 31 december 31.
 december 31, 2013 amount updated to reflect first quarter 2014 adoption of asu 2014-01 related to investments in low income housing tax credits.
 blackrock pnc owned approximately 35 million common stock equivalent shares of blackrock equity at december 31 , 2014 accounted for under equity method.
 primary risk measurement is economic capital.
 business segments review section of item 7 includes additional information about blackrock.
 tax credit investments included in our equity investments are direct tax credit investments and equity investments held by consolidated partnerships totaled $ 2.6 billion at december 31 , 2014 and 31  2013.
 equity investment balances include unfunded commitments totaling $ 717 million and $ 802 million at 2014 2013.
 unfunded commitments included in other liabilities on consolidated balance sheet.
 note 2 loan sale servicing activities variable interest entities in notes to consolidated financial statements item 8 report further information on tax credit investments.
 private equity private equity portfolio is illiquid portfolio mezzanine and equity investments vary by industry stage type investment.
 private equity investments estimated fair value totaled $ 1. 6 billion at december 31, 2014 and $ 1. 7 billion at december 31 , 2013.
 as of december 31  2014 $ 1. 1 billion invested directly in companies $. 5 billion invested indirectly through private equity funds.
 included direct investments are investment activities of two private equity funds consolidated for financial reporting purposes.
 noncontrolling interests of funds totaled $ 212 million as of december 31 , 2014.
 interests in indirect private equity funds not redeemable pnc may receive distributions partnership from liquidation of underlying investments.
 see item 1 business 2013 supervision and regulation item 1a risk factors report for discussion potential impacts of volcker rule provisions of dodd-frank on interests in sponsorship of private funds covered volcker rule.
 unfunded commitments related to private equity totaled $ 140 million at december 31, 2014 compared with $ 164 million at december 31 , 2013.
 pnc financial services group , inc.
 2013 form 10-k 93

in millions                  | december 312014 | december 312013
---------------------------- | --------------- | ---------------
blackrock                    | $ 6265          | $ 5940
tax credit investments ( a ) | 2616            | 2572
private equity               | 1615            | 1656
visa                         | 77              | 158
other                        | 155             | 234
total                        | $ 10728         | $ 10560


marathon oil corporation notes to consolidated financial statements obligation relates to lease of equipment at united states steel 2019s clairton works cokemaking facility in pennsylvania.
 we are primary obligor under lease.
 financial matters agreement united states steel assumed responsibility for all obligations under lease.
 lease is amortizing financing with final maturity of 2012.
 notes are senior secured notes of marathon oil canada corporation.
 notes secured by substantially all marathon oil canada corporation 2019s assets.
 in january 2008 provided full unconditional guarantee covering payment of all principal and interest due under senior notes.
 obligations as of december 31, 2009 include $ 36 million related to assets under construction for capital lease commence upon completion of construction.
 amounts reported based upon percent of construction completed as of december 31 , 2009 do not reflect future minimum lease obligations of $ 164 million related asset.
 payments of long-term debt for years 2010 - 2014 are $ 102 million, $ 246 million , $ 1492 million  $ 287 million $ 802 million.
 united steel due to pay $ 17 million in 2010  $ 161 million in 2011  $ 19 million in 2012  $ 11 for year 2014.
 in change in control in related agreements debt obligations totaling $ 662 million at december 31, 2009 may be declared immediately due and payable.
 see note 16 for information on interest rate swaps.
.
 asset retirement obligations summarizes changes in asset retirement obligations : ( in millions ) 2009 2008.
 asset retirement obligations as of december 31 ( ) $ 1102 $ 965 includes asset retirement obligation of $ 3 and $ 2 million classified as short-term at december 31 , 2009  and 2008.

( in millions )                                                           | 2009       | 2008
------------------------------------------------------------------------- | ---------- | ------------
asset retirement obligations as of january 1                              | $ 965      | $ 1134
liabilities incurred including acquisitions                               | 14         | 30
liabilities settled                                                       | -65 ( 65 ) | -94 ( 94 )
accretion expense ( included in depreciation depletion and amortization ) | 64         | 66
revisions to previous estimates                                           | 124        | 24
held for sale                                                             | -          | -195 ( 195 )
asset retirement obligations as of december 31 ( a )                      | $ 1102     | $ 965


entergy corporation subsidiaries notes to financial statements consists of pollution control revenue bonds environmental revenue bonds  secured by collateral first mortgage bonds.
 b these notes have stated interest rate implicit interest rate of 4. 8% ( 4. 8 % ).
 pursuant to nuclear waste policy act of 1982  entergy 2019s nuclear owner/licensee subsidiaries have contracts with doe for spent nuclear fuel disposal service.
 contracts include one-time fee for generation prior to april 7 , 1983.
 entergy arkansas only entergy company generated electric power with nuclear fuel prior to that date includes one-time fee  plus accrued interest  in long-term debt.
 see note 10 to financial statements for discussion of waterford 3 lease obligation entergy louisiana 2019s acquisition of equity participant 2019s beneficial interest in waterford 3 leased assets discussion grand gulf lease obligation.
 this note stated interest rate implicit interest rate of 7. 458% ( 7. 458 % ).
 f fair value excludes lease obligations of $ 57 million at entergy louisiana $ 34 million at system energy  long-term doe obligations of $ 182 million at entergy arkansas  includes debt due within one year.
 fair values classified as level 2 in fair value hierarchy discussed in note 15 to financial statements based on prices from inputs benchmark yields reported trades.
 annual long-term debt maturities ( excluding lease obligations long-term doe obligations ) for debt outstanding as of december 31 , 2016  for next five years are as follows : amount ( in thousands ).
 in november 2000  entergy 2019s non-utility nuclear business purchased fitzpatrick and indian point 3 power plants in seller-financed transaction.
purchase agreement with nypa  entergy recorded liability representing net present value of payments entergy liable to nypa for each year fitzpatrick and indian point 3 power plants run beyond original nrc license expiration date.
 in october 2015  entergy announced planned shutdown of fitzpatrick at end of fuel cycle.
 announcement entergy reduced liability by $ 26. 4 million to terms purchase agreement.
 in august 2016  entergy entered trust transfer agreement with nypa to transfer decommissioning trust funds and decommissioning liabilities for indian point 3 and fitzpatrick plants to entergy.
 trust transfer agreement original decommissioning agreements amended entergy subsidiaries 2019 obligation to make additional license extension payments to nypa eliminated.
 in third quarter 2016  entergy removed note payable of $ 35. 1 million from consolidated balance sheet.
 entergy louisiana , entergy mississippi , entergy texas , and system energy obtained long-term financing authorizations from ferc extend through october 2017.
 entergy arkansas obtained long-term financing authorization from apsc extends through december 2018.
 entergy new orleans obtained long-term financing authorization from city council extends through june 2018.
 capital funds agreement agreement with certain creditors entergy corporation agreed to supply system energy with sufficient capital to : 2022 maintain system energy 2019s equity capital at minimum of 35% ( 35 % ) of total capitalization ( excluding short- term debt )

| amount ( in thousands )
---- | -----------------------
2017 | $ 307403
2018 | $ 828084
2019 | $ 724899
2020 | $ 795000
2021 | $ 1674548


following tables present reconciliation beginning ending balances fair value measurements using significant unobservable inputs ( level 3 ) 2017 2016 respectively:.
 purchases , issuances settlements , net.
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 $ 140 company 2019s postretirement benefit plans different levels funded status assets held under various trusts.
 investments risk mitigation strategies plans tailored specifically each trust.
 setting new strategic asset mixes  consideration given likelihood selected asset allocation effectively fund projected plan liabilities meet risk tolerance criteria company.
 company periodically updates long-term strategic asset allocations plans through asset liability studies uses various analytics determine optimal asset allocation.
 considerations include plan liability characteristics , liquidity needs , funding requirements  expected rates of return distribution of returns.
 strategies address goal ensuring sufficient assets pay benefits include target allocations broad array asset classes within asset classes  strategies employed provide adequate returns , diversification liquidity.
2012 , company implemented de-risking strategy for american water pension plan after conducting asset-liability study to reduce volatility of funded status plan.
 part of de-risking strategy company revised asset allocations to increase matching characteristics of fixed-income assets relative to liabilities.
 fixed income portion portfolio designed to match bond-like and long-dated nature of postretirement liabilities.
 in 2017  company increased exposure to liability-driven investing increased fixed-income allocation to 50% ( 50 % ) , up from 40% ( 40 % ) effort to decrease funded status volatility plan hedge portfolio from movements in interest rates.
 in 2012  company implemented de-risking strategy for medical bargaining trust within plan to minimize volatility.
 in 2017  company conducted new asset-liability study indicated medical trend inflation outpaced consumer price index by more than 2% ( 2 % ) for last 20 years.
 continuously rising medical costs company decided to increase equity exposure of portfolio to 30% ( 30 % ) , up from 20% ( 20 % )  reducing fixed-income portion of portfolio from 80% ( 80 % ) to 70% ( 70 % ).
 company conducted asset-liability study for post-retirement non-bargaining medical plan.
 allocation adjusted to more conservative reducing equity allocation from 70% ( 70 % ) to 60% ( 60 % ) increasing fixed- income allocation from 30% ( 30 % ) to 40% ( 40 % ).
 post-retirement medical non-bargaining plan 2019s equity allocation reduced due to cap on benefits for some non-union participants and resultant reduction in plan 2019s liabilities.
 changes take place in 2018.
 company engages third party investment managers for all invested assets.
 managers not permitted to invest outside of asset class.
fixed income , equity , alternatives ) or strategy for they appointed.
 investment management agreements recurring performance attribution analysis used as tools to ensure investment managers invest solely within investment strategy provided.
 futures options used to adjust portfolio duration to align with plan 2019s targeted investment policy.

| level 3
--------------------------------------- | -------
balance as of january 1 2017            | $ 140
actual return on assets                 | 2
purchases issuances and settlements net | 136
balance as of december 31 2017          | $ 278


mutual and pooled funds shares of mutual funds valued at net asset value ( nav ) quoted on exchange where fund traded classified as level 1 assets.
 units of pooled funds valued at per unit nav determined by fund manager classified as level 2 assets.
 investments utilizing nav as practical expedient for fair value.
 corporate and government bonds corporate government bonds classified as level 2 assets  either valued at quoted market prices from reporting date or valued based upon comparable securities with similar yields and credit ratings.
 mortgage and asset-backed securities mortgage asset 2013backed securities classified as level 2 assets either valued at quoted market prices from pricing sources reporting date or valued based upon comparable securities with similar yields , credit ratings  purpose of underlying loan.
 real estate pooled funds real pooled funds classified as level 3 assets  carried at estimated fair value of underlying properties.
 estimated fair value calculated utilizing combination of key inputs  revenue and expense growth rates terminal capitalization rates discount rates.
 key inputs consistent with practices prevailing within real estate investment management industry.
 other pooled funds pooled funds classified as level 2 assets valued at nav of shares held at year end  based on fair value of underlying investments.
 securities and interests classified as level 3 carried at estimated fair value of underlying investments.
 underlying investments valued based on bids from brokers or other third-party vendor sources utilize expected cash flow streams other uncorroborated data , including counterparty credit quality , default risk  discount rates  overall capital market liquidity.
 insurance contracts insurance contracts classified as level 3 assets  carried at contract value  approximates estimated fair value.
estimated fair value based on fair value underlying investment insurance company.
 contributions projected benefit payments pension contributions to funded plans benefit payments for unfunded plans for fiscal year 2015 were $ 137. 5.
 contributions resulted from assessment of long-term funding requirements plans tax planning.
 benefit payments to unfunded plans due to timing of retirements cost reduction actions.
 anticipate contributing $ 100 to $ 120 to defined benefit pension plans in 2016.
 contributions driven primarily by benefit payments for unfunded plans dependent upon timing of retirements actions to reorganize business.
 projected benefit payments reflect expected future service as follows:.
 estimated benefit payments based on assumptions about future events.
 actual benefit payments may vary significantly from estimates.

| u.s .   | international
------------- | ------- | -------------
2016          | $ 129.0 | $ 52.0
2017          | 135.8   | 53.5
2018          | 142.2   | 55.3
2019          | 149.6   | 57.5
2020          | 157.4   | 57.8
2021 20132025 | 917.9   | 332.3


at december 31, 2015 and 2014  options for 5 million and 6 million shares common stock exercisable at weighted-average price of $ 55. 42 and $ 56. 21 .
 total intrinsic value of options exercised was approximately $. 1 billion during 2016  2015 2014.
 cash received from option exercises under all incentive plans for 2016  2015 2014 was approximately $. 1 billion , $. 1 billion $. 2 billion.
 tax benefit from option exercises incentive plans insignificant for 2016  2015 2014.
 shares common stock available next year for granting options and other awards under incentive plans were approximately 39 million shares at december 31, 2016.
 total shares of pnc common stock authorized for future issuance under all equity compensation plans totaled approximately 40 million shares at december 31 , 2016.
 during 2016  issued approximately 2 million common shares from treasury stock with stock option exercise activity.
 intend to utilize primarily treasury stock for future stock option exercises.
 incentive/performance unit awards and restricted share/restricted unit awards fair value of nonvested incentive initially determined based on prices not less than market value of common stock on date of grant with reduction for estimated forfeitures.
 value of certain incentive/ performance unit awards remeasured based on achievement of one more financial and other performance goals.
 certain incentive/ performance unit awards require adjustment to current market value due to discretionary risk review triggers.
 weighted-average grant date fair value of incentive performance unit awards restricted awards granted in 2016 , 2015 2014 was $ 78. 37 , $ 91. 57 $ 80. 79 per share.
total value of incentive/performance unit restricted share awards vested during 2016  2015 2014 was approximately $. 1 billion , $. 2 billion $. 1 billion  respectively.
 recognize compensation expense for awards over vesting performance periods for each program.
 table 78 : nonvested incentive/performance unit awards restricted share/restricted share unit awards 2013 rollforward shares in millions nonvested incentive/ performance units shares weighted- average date fair nonvested restricted share/ restricted weighted- average grant date fair value.
 forfeited awards during 2016 were insignificant.
 ) includes adjustments for achieving specific performance goals for incentive performance unit share awards granted in prior periods.
 table 78  units related weighted-average grant date fair value of incentive unit share awards exclude effect of dividends on underlying shares dividends paid in cash if underlying shares issued to participants.
 blackrock long-term incentive plans ( ltip ) blackrock adopted 2002 ltip program to attract retain qualified professionals.
 agreed to transfer up to four million shares of blackrock common stock to fund portion 2002 ltip program future ltip programs approved by blackrock 2019s board directors.
 in 2009  obligation to deliver remaining blackrock common shares replaced with obligation to deliver shares of blackrock 2019s series c preferred stock held.
 in 2016  transferred. 5 million shares of blackrock series c preferred stock to blackrock in with obligation.
 at december 31 , 2016  held approximately. 8 million shares of blackrock series c preferred stock available to fund obligations.
 see note 23 subsequent events for information on february 1, 2017 transfer of. 5 million shares of series c preferred stock to blackrock to satisfy portion ltip obligation.
account for blackrock series c preferred stock at fair value offsets impact marking-to-market obligation to deliver shares to blackrock.
 see note 6 fair value for additional information valuation blackrock series c preferred stock.
 pnc financial services group , inc.
 2013 form 10-k 139

shares in millions december 31 2015 | nonvested incentive/ performance units shares 2 | weighted- average grant date fair value $ 79.27 | nonvested restricted share/ restricted share units 3 | weighted- average grant date fair value $ 79.26
----------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ---------------------------------------------------- | -----------------------------------------------
granted ( b )                       | 1                                               | $ 77.77                                         | 1                                                    | $ 78.71
vested/released ( b )               | -1 ( 1 )                                        | $ 71.59                                         | -1 ( 1 )                                             | $ 65.53
december 31 2016                    | 2                                               | $ 81.42                                         | 3                                                    | $ 83.27


value  maturity company not consider investments-temporarily impaired as of december 31 , 2005 and 2004.
 gross realized gains and losses for 2005 were $ 15000 and $ 75000 , respectively.
 gross realized gains and losses for 2004 were $ 628000 and $ 205000 ,.
 gross realized gains for 2003 were $ 1249000.
 no gross realized losses for 2003.
 maturities stated are effective maturities.
.
 restricted cash at december 31 , 2005 and 2004  company held $ 41482000 and $ 49847000  respectively in restricted cash.
 at december 31, 2005 2004 balance was held in deposit with certain banks to collateralize conditional stand-by letters of credit in names of company's landlords operating lease agreements.
.
 property and equipment consist of following at december 31 ( in thousands ) : depreciation expense for years ended december 31 , 2005 , 2004 and 2003 was $ 26307000 , $ 28353000 and $ 27988000 respectively.
 in 2005 and 2004  company wrote off certain assets fully depreciated no longer utilized.
 no effect on company's net property and equipment.
 company wrote off or sold certain assets not fully depreciated.
 net loss on disposal of assets was $ 344000 for 2005 and $ 43000 for 2004.
.
 investments in accordance with company's policy  in note b , "accounting policies" company assessed investment in altus pharmaceuticals , inc.
 "altus" ) accounts for using cost method determined any adjustments to fair values of investment indicate decrease in fair value below carrying value require company to write down investment basis of asset  as of december 31 , 2005 and december 31 , 2004.
company's cost basis value outstanding equity warrants of altus was $ 18863000 at december 31 , 2005 2004.

| 2005    | 2004
---------------------------------------------- | ------- | -------
furniture and equipment                        | $ 98387 | $ 90893
leasehold improvements                         | 66318   | 65294
computers                                      | 18971   | 18421
software                                       | 18683   | 16411
total property and equipment gross             | 202359  | 191019
less accumulated depreciation and amortization | 147826  | 126794
total property and equipment net               | $ 54533 | $ 64225


agencies consider factors determining final rating of insurance company.
 consideration is relative level of statutory surplus to support business.
 statutory surplus represents capital insurance company reported in accordance with accounting practices by state insurance department.
 see part i  item 1a.
 risk factors 2014 201cdowngrades in financial strength or credit ratings may make products less attractive could increase cost of capital inhibit ability to refinance debt adverse effect on business  financial condition  results of operations liquidity. statutory surplus table sets forth statutory surplus for company 2019s insurance companies as of december 31, 2014 and 2013:.
 statutory capital and surplus for.
 life insurance subsidiaries  including domestic captive insurance subsidiaries in 2013 increased by $ 518 , due to variable annuity surplus of $ 788 , net income from non-variable annuity business of $ 187 , increases in unrealized gains from other invested assets $ 138 , offset by returns of capital of $ 500  changes in reserves on change in valuation basis of $ 100.
 effective april 30 , 2014 last domestic captive ceased operations.
 statutory capital and surplus for property and casualty insurance increased by $ 47 , due to statutory net income of $ 1. 1 billion  unrealized gains on investments of $ 1. 4 billion  offset by dividends to hfsg holding company of $ 2. 5 billion.
 company held regulatory capital and surplus for former operations in japan until sale operations on june 30 , 2014.
 under accounting practices japanese regulatory authorities company 2019s statutory capital and surplus was $ 1. 2 billion as of december 31 , 2013.

| 2014    | 2013
------------------------------------------------------------------------------------------ | ------- | -------
u.s . life insurance subsidiaries includes domestic captive insurance subsidiaries in 2013 | $ 7157  | $ 6639
property and casualty insurance subsidiaries                                               | 8069    | 8022
total                                                                                | $ 15226 | $ 14661


part ii item 5.
 market for registrant 2019s common equity related stockholder matters market information our common stock traded on new york stock exchange ( 2018 2018nyse 2019 2019 ) under symbol 2018 2018exr 2019 2019 since ipo august 17 , 2004.
 prior no public market for common stock.
 following table sets forth for periods indicated high and low bid price for common stock reported by nyse per share dividends declared : dividends high low declared.
 on february 28 , 2006  closing price of common stock nyse was $ 15. 00.
 at february 28, 2006  had 166 holders of record of common stock.
 holders shares common stock entitled to receive distributions when declared by board of directors of assets legally available for purpose.
 reit  required to distribute at least 90% ( 90 % ) of 2018 2018reit taxable income 2019 2019 equivalent to net taxable ordinary income determined without regard to deduction for dividends paid to stockholders annually to maintain reit qualifications for u. s.
 federal income tax purposes.
 unregistered sales of equity securities use of proceeds on june 20 , 2005  completed sale of 6200000 shares of common stock , $. 01 par value , for $ 83514 , reported in current report on form 8-k filed with securities and exchange commission on june 24 , 2005.
 used proceeds for general corporate purposes including debt repayment.
 shares issued pursuant to exemption from registration under securities act of 1933  as amended.

| high    | low     | dividends declared
----------------------------------------------- | ------- | ------- | ------------------
period from august 17 2004 to september 30 2004 | $ 14.38 | $ 12.50 | $ 0.1113
quarter ended december 31 2004                  | 14.55   | 12.60   | 0.2275
quarter ended march 31 2005                     | 14.30   | 12.55   | 0.2275
quarter ended june 30 2005                      | 14.75   | 12.19   | 0.2275
quarter ended september 30 2005                 | 16.71   | 14.32   | 0.2275
quarter ended december 31 2005                  | 15.90   | 13.00   | 0.2275


table contents performance graph graph compares total return  assuming reinvestment of dividends on investment in company  based on performance of company's common stock with total return of standard & poor's 500 composite stock index ( "s&p 500 ) and dow jones united states travel and leisure index for five year period by measuring changes in common stock prices from december 31 , 2013 to december 31 , 2018.
 stock performance graph assumes value of company's common stock and each index was $ 100 on december 31 , 2013 all dividends were reinvested.
 past performance not indicator of future results.

| 12/13  | 12/14  | 12/15  | 12/16  | 12/17  | 12/18
-------------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd .    | 100.00 | 176.94 | 220.72 | 182.99 | 271.25 | 227.46
s&p 500                          | 100.00 | 113.69 | 115.26 | 129.05 | 157.22 | 150.33
dow jones u.s . travel & leisure | 100.00 | 116.37 | 123.23 | 132.56 | 164.13 | 154.95


american tower corporation subsidiaries notes to consolidated financial statements table summarizes preliminary allocation of aggregate purchase consideration paid amounts of assets acquired liabilities assumed based upon estimated fair value at date of acquisition ( in thousands ) : preliminary purchase price allocation.
 1 consists of customer-related intangibles of approximately $ 80. 0 million network location intangibles of approximately $ 38. 0 million.
 customer-related intangibles network location intangibles amortized straight-line basis over periods up to 20 years.
 company expects goodwill recorded deductible for tax purposes.
 goodwill allocated to company 2019s international rental management segment.
 ghana acquisition 2014on december 6, 2010  company entered definitive agreement with mtn group limited ( 201cmtn group 201d ) to establish joint venture in ghana.
 joint venture controlled by holding company wholly owned subsidiary of company ( 201catc ghana subsidiary 201d ) holds 51% ( 51 % ) interest mobile telephone networks ( netherlands ). wholly owned subsidiary of mtn group ( 201cmtn ghana subsidiary 201d ) holds 49% ( 49 % ) interest.
 joint venture managed controlled by company owns tower operations company in ghana.
 pursuant agreement on may 6 , 2011, august 11, 2011 december 23 , 2011  joint venture acquired 400 , 770 686 communications sites from mtn group 2019s operating subsidiary in ghana for aggregate purchase price of $ 515. 6 million ( including contingent consideration of $ 2. 3 million value added tax of $ 65. 6 million ).
 aggregate purchase price increased to $ 517. 7 million ( including contingent consideration of $ 2. 3 million value added tax of $ 65. 6 million ) after post-closing adjustments.
under terms purchase agreement , legal title to certain communications sites acquired on december 23 , 2011 will be transferred upon fulfillment of conditions by mtn group.
 prior to fulfillment conditions company will operate and maintain control of these communications sites reflect these sites in allocation of purchase price and consolidated operating results.
 in december 2011  company signed amendment to agreement with mtn group requires company to make additional payments upon conversion of barter agreements with wireless carriers to cash-paying master lease agreements.
 company estimates fair value of remaining potential contingent consideration payments required under amended agreement between zero and $ 1. 0 million estimated to be $ 0. 9 million using probability weighted average of expected outcomes at december 31 , 2012.
 company previously made payments under this arrangement of $ 2. 6 million.
 during year ended december 31 , 2012  company recorded increase in fair value of $ 0. 4 million as other operating expenses in consolidated statements of operations.

| preliminary purchase price allocation
--------------------------------- | -------------------------------------
non-current assets                | $ 24460
property and equipment            | 138959
intangible assets ( 1 )           | 117990
other non-current liabilities     | -18195 ( 18195 )
fair value of net assets acquired | $ 263214
goodwill ( 2 )                    | 47481


remaining change in expense driven by changes on foreign currency exchange instruments discussed in note 7 201citem 8.
 financial statements supplementary data 201d of report.
 income taxes.
 for discussion on income taxes see note 8 201citem 8.
 financial statements supplementary data 201d report.
 discontinued operations net earnings increased due to gain on sale of aggregate ownership interests in enlink and general partner of $ 2. 6 billion ( $ 2. 2 billion after-tax ).
 for discussion on discontinued operations see note 19 in 201citem 8.
 financial statements supplementary data 201d report.
 results of operations 2013 2017 vs.
 2016 graph shows change in net earnings from 2016 to 2017.
 material changes discussed by category on following pages.
 numbers presented before consideration of earnings attributable to noncontrolling interests.
 $ 1308 ( $ 165 ) ( $ 4 ) $ 1 $ 63 $ 400 ( $ 397 ) $ 126 $ 1204 ( $ 1458 ) $ 1078 2016 upstream operations marketing operations exploration expenses dd&a g&a financing costs  net other ( 1 ) income discontinued operations net earnings ( 1 ) table includes asset impairments asset dispositions  restructuring transaction costs other expenses.
 graph presents drivers of upstream operations change additional details discussion drivers following graph.
 ( $ 427 ) ( $ 427 ) $ 1395$ 1 395 $ 2176$ 2 176 $ 3484 2016 production volumes field prices hedging 2017 upstream operations expenses

| 2018         | 2017
---------------------------- | ------------ | ----------
current expense ( benefit )  | $ -70 ( 70 ) | $ 112
deferred expense ( benefit ) | 226          | -97 ( 97 )
total expense                | $ 156        | $ 15
effective income tax rate    | 17% ( 17 % ) | 2% ( 2 % )


stock total return performance graph compares our total return to stockholders with returns standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) and dow jones us select health care providers index ( 201cpeer group 201d ) for five years ended december 31 , 2014.
 graph assumes investment of $ 100 in each common stock , s&p 500  peer group on december 31 , 2009  dividends reinvested when paid.
 stock price performance graph not indicative of future stock price performance.
 table of contents

| 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum        | $ 100      | $ 125      | $ 201      | $ 160      | $ 244      | $ 342
s&p 500    | $ 100      | $ 115      | $ 117      | $ 136      | $ 180      | $ 205
peer group | $ 100      | $ 112      | $ 123      | $ 144      | $ 198      | $ 252


aes corporation notes to consolidated financial statements 2014 continued ) december 31 , 2010 , 2009  2008 3 multilateral loans include loans funded guaranteed by bilaterals  multilaterals development banks similar institutions.
 non-recourse debt of $ 708 million as of december 31 , 2009 excluded from non-recourse debt included in current long-term liabilities of held for sale discontinued businesses in accompanying consolidated balance sheets.
 non-recourse debt as of december 31 , 2010 scheduled to reach maturity in table below : december 31 , annual maturities ( in millions ).
 as of december 31 , 2010  aes subsidiaries with facilities under construction had total approximately $ 432 million of committed unused credit facilities available to fund construction related costs.
 excluding facilities under construction aes subsidiaries had approximately $ 893 million in available unused committed revolving credit lines to support working capital debt service reserves business needs.
 credit lines can be used in solely for borrowings ; for letters of credit ; or combination of uses.
 weighted average interest rate on borrowings from facilities was 3. 24% ( 3. 24 % ) at december 31 , 2010.
 non-recourse debt covenants , restrictions defaults terms company 2019s non-recourse debt include certain financial and non-financial covenants.
 covenants limited to subsidiary activity vary among subsidiaries.
 covenants may include maintenance of reserves minimum levels of working capital limitations on incurring additional indebtedness.
 compliance with certain covenants may not be objectively determinable.
as of december 31 , 2010 and 2009 , approximately $ 803 million and $ 653 million  respectively of restricted cash maintained in with non-recourse debt agreements amounts included within 201crestricted cash 201d and 201cdebt service reserves and other deposits 201d in accompanying consolidated balance sheets.
 lender and governmental provisions restrict ability company 2019s subsidiaries to transfer net assets to parent company.
 restricted net assets of subsidiaries amounted to approximately $ 5. 4 billion at december 31 , 2010.

december 31,            | annual maturities ( in millions )
----------------------- | ---------------------------------
2011                    | $ 2577
2012                    | 657
2013                    | 953
2014                    | 1839
2015                    | 1138
thereafter              | 7957
total non-recourse debt | $ 15121


american tower corporation subsidiaries notes to consolidated financial statements 2014 continued ) maturities 2014as of december 31 , 2007  aggregate carrying value of long-term debt  including capital leases for next five years thereafter estimated to be ( in thousands ) : year ending december 31.
 4.
 acquisitions during years ended december 31 , 2007 , 2006 2005  company used cash to acquire total 293 towers assets of structural analysis firm for approximately $ 44. 0 million in cash 84 towers 6 in-building distributed antenna systems for approximately $ 14. 3 million 30 towers for approximately $ 6. 0 million in cash.
 tower asset acquisitions primarily in mexico brazil under ongoing agreements.
 year ended december 31 , 2005  company completed merger with spectrasite , inc.
 company acquired approximately 7800 towers 100 in-building distributed antenna systems.
 merger agreement in august 2005  spectrasite  inc.
 merged with wholly- owned subsidiary of company each share of spectrasite , inc.
 common stock converted into right to receive 3. 575 shares of company 2019s class a common stock.
 company issued approximately 169. 5 million shares of class a common stock reserved for issuance approximately 9. 9 million and 6. 8 million of class a common stock pursuant to spectrasite , inc.
 options warrants assumed in merger.
 final allocation of $ 3. 1 billion purchase price summarized in company 2019s annual report on form 10-k for year ended december 31 , 2006.
 acquisitions consummated company during 2007 , 2006 2005  accounted for under purchase method of accounting accordance with sfas no.
 141 201cbusiness combinations 201d ( sfas.
 141 ).
purchase prices allocated to net assets acquired liabilities assumed based on estimated fair values at date of acquisition.
 company primarily acquired tower assets from third parties in one of two types transactions : purchase of business or purchase of assets.
 structure of each transaction affects company allocates purchase price within consolidated financial statements.
 in case of tower assets acquired through purchase of business , as company 2019s merger with spectrasite , inc., company allocates purchase price to assets acquired and liabilities assumed at estimated fair values as of date of acquisition.
 excess of purchase price paid by company over estimated fair value of net assets acquired recorded as goodwill.
 in case of asset purchase , company first allocates purchase price to property and equipment for appraised value of towers and to identifiable intangible assets ( primarily acquired customer base ).
 company then records remaining purchase price within intangible assets as a 201cnetwork location intangible. 201d

2008                                                                                | $ 1817
------------------------------------------------------------------------------------------------- | ---------
2009                                                                                | 1241
2010                                                                                | 78828
2011                                                                                | 13714
2012                                                                                | 1894998
thereafter                                                                                | 2292895
total cash obligations                                                                            | $ 4283493
accreted value of the discount and premium of 3.00% ( 3.00 % ) notes and 7.125% ( 7.125 % ) notes | 1791
balance as of december 31 2007                                                                    | $ 4285284


5.
 other current assets consisted of following at december 31:.
 6.
 performance bonds guaranty fund contributions cme clears guarantees settlement of cme , cbot nymex contracts traded in respective markets.
 guarantor role cme has equal offsetting claims to from clearing firms on opposite sides of each contract standing as intermediary on every contract cleared.
 clearing firm positions combined to create single portfolio for each clearing firm 2019s regulated and non-regulated accounts with cme for performance bond and guaranty fund requirements calculated.
 funds not available to satisfy obligation under applicable contract cme bears counterparty credit risk in future market movements create conditions could lead to clearing firms failing to meet obligations to cme.
 cme reduces exposure through risk management program includes initial ongoing financial standards for designation as clearing firm, performance bond requirements mandatory guaranty fund contributions.
 each clearing firm required to deposit maintain balances in of cash, u. s.
 government securities  bank letters of credit other approved investments to satisfy performance bond guaranty fund requirements.
 all obligations non-cash deposits marked to market daily basis.
 rules and regulations of cbot require minimum financial requirements for delivery of physical commodities maintenance of capital requirements deposits on pending arbitration matters.
 to satisfy requirements cbot clearing firms have deposited cash ,. s.
 treasury securities letters of credit.
 cme marks-to-market open positions twice a day requires payment from clearing firms whose positions lost value makes payments to clearing firms whose positions gained value.
 for select product offerings within newer markets positions marked-to-market once daily capability to mark-to-market more frequently as market conditions warrant.
unlikely scenario of simultaneous default by every clearing firm open positions with unrealized losses maximum exposure to cme 2019s guarantee one half day of changes in fair value of all open positions before considering cme 2019s ability to access defaulting clearing firms 2019 performance bond guaranty fund balances other available resources.
 during 2010  cme transferred average of approximately $ 2. 4 billion a day through clearing system for settlement from clearing firms positions lost value to clearing firms gained value.
 cme reduces guarantee exposure through initial maintenance performance bond requirements mandatory guaranty fund contributions.
 company believes guarantee liability is immaterial not recorded liability at december 31 , 2010.

( in millions )                                      | 2010    | 2009
---------------------------------------------------- | ------- | -------
refundable income tax                                | $ 61.0  | $ 24.1
net deferred income taxes ( note 14 )                | 18.3    | 23.8
prepaid technology license and maintenance contracts | 18.0    | 17.0
forward contract receivable ( note 20 )              | 11.8    | 27.3
receivables from brokers                             | 11.2    | 8.8
other prepaid expenses                               | 9.6     | 13.5
prepaid insurance                                    | 6.3     | 7.0
cboe exercise rights privilege                       | 2014    | 39.8
other                                                | 9.9     | 4.3
total                                                | $ 146.1 | $ 165.6


notes to consolidated financial statements 2014 continued ) amounts in millions except per share amounts ) sales of businesses investments 2013 includes realized gains losses relating to sales of businesses cumulative translation adjustment balances from liquidation of entities sales of marketable securities investments in publicly traded and privately held companies in rabbi trusts.
 during 2009  realized gain of $ 15. 2 related to sale of investment in rabbi trusts partially offset by losses from sale of various businesses.
 losses in 2007 related to sale of several businesses within draftfcb for loss of $ 9. 3 charges at lowe of $ 7. 8 result of realization of cumulative translation adjustment balances from liquidation of businesses.
 vendor discounts credit adjustments 2013 process of settling liabilities related to vendor discounts credits established during restatement presented in 2004 annual report on form 10-k.
 adjustments reflect reversal of liabilities of settlements with clients or vendors or where statute of limitations lapsed.
 litigation settlement 2013 during may 2008  sec concluded investigation began in 2002 into financial reporting practices in settlement charge of $ 12. 0.
 investment impairments 2013 in 2007 realized other-than-temporary charge of $ 5. 8 to $ 12. 5 investment in auction rate securities representing total investment in auction rate securities.
 see note 12 for further information.
 note 5 : intangible assets goodwill is excess purchase price remaining from acquisition after allocation of purchase price made to identifiable assets acquired liabilities assumed based on estimated fair values.
 changes in carrying value of goodwill for our segments , integrated agency networks ( 201cian 201d ) constituency management group ( 201ccmg 201d ) for years ended december 31 , 2009 2008 listed below.
1 all periods presented not recorded goodwill impairment charge.
 2 acquisitions completed after january 1 , 2009 amount includes contingent deferred payments recorded at fair value on acquisition date.
 see note 6 for further information.
 see note 1 for further information annual impairment methodology.
 other intangible assets included are assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization.
 assets primarily include customer lists trade names.
 assets with definitive lives subject to amortization amortized straight-line basis estimated useful lives between 7 and 15 years.
 amortization expense for other intangible assets years ended december 31, 2009, 2008 2007 was $ 19. 3 , $ 14. 4 $ 8. 5 , respectively.
 following table provides summary of other intangible assets included in assets on consolidated balance sheets.

| ian              | cmg            | total 1
------------------------------------------------------- | ---------------- | -------------- | ----------------
balance as of december 31 2007                          | $ 2789.7         | $ 441.9        | $ 3231.6
current year acquisitions                               | 99.5             | 1.8            | 101.3
contingent and deferred payments for prior acquisitions | 28.9             | 1.1            | 30.0
other ( primarily foreign currency translation )        | -128.1 ( 128.1 ) | -13.9 ( 13.9 ) | -142.0 ( 142.0 )
balance as of december 31 2008                          | $ 2790.0         | $ 430.9        | $ 3220.9
current year acquisitions2                              | 5.2              | 2014           | 5.2
contingent and deferred payments for prior acquisitions | 14.2             | 2014           | 14.2
other ( primarily foreign currency translation )        | 76.2             | 4.5            | 80.7
balance as of december 31 2009                          | $ 2885.6         | $ 435.4        | $ 3321.0


entergy mississippi may refinance, redeem retire debt preferred stock prior to maturity to extent market conditions interest dividend rates favorable.
 all debt common preferred stock issuances by require prior regulatory approval. a0preferred stock debt issuances subject to issuance tests in corporate charter, bond indenture other agreements. a0entergy mississippi has sufficient capacity under these tests to meet foreseeable capital needs.
 entergy mississippi 2019s receivables from money pool were as follows as of december 31 for each following years.
 see note 4 to financial statements for description of money pool.
 entergy mississippi has four separate credit facilities in aggregate amount of $ 102. 5 million scheduled to expire may 2018.
 no borrowings outstanding under credit facilities as of december a031 , 2017. entergy mississippi is a party to uncommitted letter of credit facility to post collateral to support obligations.
 as of december a031 , 2017 $ 15. 3 million letter of credit was outstanding under entergy mississippi 2019s uncommitted letter of credit facility.
 see note 4 to financial statements for additional discussion of credit facilities.
 entergy mississippi obtained authorizations from ferc through october 2019 for short-term borrowings not to exceed aggregate amount $ 175 million any time outstanding long-term borrowings security issuances.
 see note 4 to financial statements for further discussion of entergy mississippi 2019s short-term borrowing limits.
 entergy mississippi .
 management 2019s financial discussion analysis state local rate regulation fuel-cost recovery rates entergy mississippi charges for electricity influence financial position results of operations liquidity.
entergy mississippi regulated rates charged to customers determined in regulatory proceedings.
 governmental agency mpsc  responsible for approval of rates charged customers.
 formula rate plan march 2016 entergy mississippi submitted formula rate plan 2016 test year filing showing 2019s projected earned return for 2016 year below formula rate plan bandwidth.
 filing showed $ 32. 6 million rate increase necessary to reset entergy mississippi 2019s earned return on common equity to specified point of adjustment of 9. 96% ( 9. 96 % ) within formula rate plan bandwidth.
 june 2016 mpsc approved entergy mississippi 2019s joint stipulation with mississippi public utilities staff.
 joint stipulation provided for total revenue increase of $ 23. 7 million.
 revenue increase includes $ 19. 4 million increase through formula rate plan in return on common equity point of adjustment of 10. 07% ( 10. 07 % ).
 revenue increase includes $ 4. 3 million in incremental ad valorem tax expenses collected through updated ad valorem tax adjustment rider.
 revenue increase and ad valorem tax adjustment rider effective with july 2016 bills.
 march 2017 entergy mississippi submitted formula rate plan 2017 test year filing and 2016 look-back filing showing 2019s earned return for historical 2016 calendar year and projected earned return for 2017 year within formula rate plan bandwidth in no change in rates.
 june 2017  entergy mississippi and mississippi public utilities staff entered into stipulation confirmed entergy

2017             | 2016             | 2015             | 2014
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 1633           | $ 10595          | $ 25930          | $ 644


schedule of future minimum rental payments required under long-term operating leases at october 30 , 2010 : fiscal years operating leases.
 12.
 commitments and contingencies from time to time in ordinary course company 2019s business  claims , charges litigation asserted or commenced against company from related to contractual matters patents trademarks personal injury environmental matters product liability insurance coverage personnel employment disputes.
 company can give no assurance that it will prevail.
 company not believe current legal matters will material adverse effect on company 2019s financial position  results of operations or cash flows.
 13.
 retirement plans company and subsidiaries have savings and retirement plans covering all employees.
 company maintains defined contribution plan for benefit of eligible u.
 employees.
 plan provides for company contributions of up to 5% ( 5 % ) of each participant 2019s total eligible compensation.
 company contributes amount equal to each participant 2019s pre-tax contribution  up to maximum of 3% ( 3 % ) of each participant 2019s total eligible compensation.
 total expense related to defined contribution plan for u.
 employees was $ 20. 5 million in fiscal 2010  $ 21. 5 million in fiscal 2009 $ 22. 6 million in fiscal 2008.
 company has various defined benefit pension and other retirement plans for certain non-u. s.
 employees consistent with local statutory requirements practices.
 total expense related to defined benefit pension retirement plans for certain non-u. s.
 employees was $ 11. 7 million in fiscal 2010  $ 10. 9 million in fiscal 2009 $ 13. 9 million in fiscal 2008.
 during fiscal 2009 measurement date of plan 2019s funded status changed from september 30 to company 2019s fiscal year end.
 non-u. s.
plan disclosures company 2019s funding policy for foreign defined benefit pension plans consistent with local requirements of each country.
 plans 2019 assets consist primarily of u.
 non-u.
 equity securities  bonds  property cash.
 benefit obligations related assets under plans measured at october 30, 2010 and october 31 , 2009.
 analog devices.
 notes to consolidated financial statements 2014 ( continued

fiscal years | operating leases
------------ | ----------------
2011         | $ 21871
2012         | 12322
2013         | 9078
2014         | 6381
2015         | 5422
later years  | 30655
total        | $ 85729


fair value of financial instruments carrying amounts for company 2019s cash and cash equivalents , accounts receivable and accounts payable approximate fair value short term maturity of instruments.
 fair value of long term debt approximates carrying value based on variable nature of interest rates and current market rates available company.
 fair value of foreign currency forward contracts based on net difference between u. s.
 dollars received or paid at contracts 2019 settlement date and u.
 dollar value of foreign currency sold or purchased at current forward exchange rate.
 recently issued accounting standards in june 2011  financial accounting standards board ( 201cfasb 201d ) issued accounting standards update eliminates option to report other comprehensive income and components in statement of changes in stockholders 2019 equity.
 requires entity to present total comprehensive income  includes components of net income and components other comprehensive income in single continuous statement or in two separate consecutive statements.
 in december 2011  fasb issued amendment to pronouncement defers specific requirement to present components of reclassifications of other comprehensive income on face of income statement.
 pronouncements effective for financial statements issued for fiscal years  and interim periods years beginning after december 15 , 2011.
 company believes adoption of pronouncements not material impact on consolidated financial statements.
 in may 2011  fasb issued accounting standards update clarifies requirements for to measure fair value and for disclosing information about fair value measurements common to accounting principles accepted in united states of america and international financial reporting standards.
 guidance effective for interim and annual periods beginning on or after december 15 , 2011.
 company believes adoption of guidance not material impact on consolidated financial statements.
.
 inventories consisted of following:.
 4.
acquisitions in july 2011 company acquired approximately 400. 0 thousand square feet office space corporate headquarters for $ 60. 5 million.
 acquisition included land  buildings tenant improvements third party lease-related intangible assets.
 purchase date 163. 6 thousand square feet of 400. 0 thousand square feet acquired leased to third party tenants.
 leases had remaining lease terms from 9 months to 15 years on purchase date.
 company intends to occupy additional space as becomes available.
 since acquisition company invested $ 2. 2 million in additional improvements.
 acquisition included assumption of $ 38. 6 million loan secured by property remaining purchase price paid in cash funded by $ 25. 0 million term loan borrowed in may 2011.
 carrying value of assumed loan approximated fair value on date of acquisition.
 refer to note 7 for

( in thousands )  | december 31 , 2011 | december 31 , 2010
----------------- | ------------------ | ------------------
finished goods    | $ 323606           | $ 214524
raw materials     | 803                | 831
total inventories | $ 324409           | $ 215355


entergy arkansas , inc.
 management's financial discussion analysis results of operations net income 2004 compared to 2003 net income increased $ 16. 2 million due to lower operation maintenance expenses  lower effective income tax rate for 2004 lower interest charges.
 increase partially offset by lower net revenue.
 2003 compared to 2002 net income decreased $ 9. 6 million due to lower net revenue  higher depreciation amortization expenses higher effective income tax rate for 2003 compared 2002.
 decrease offset by lower other operation maintenance expenses  higher other income  lower interest charges.
 net revenue 2004 compared to 2003 net revenue ' measure of gross margin consists of operating revenues net of 1 ) fuel , fuel-related  purchased power expenses 2 ) other regulatory credits.
 analysis of change in net revenue comparing 2004 to 2003.
 deferred fuel cost revisions includes difference between estimated deferred fuel expense and actual calculation of recoverable fuel expense  annual basis.
 deferred fuel cost revisions decreased net revenue due to revised estimate of fuel costs filed for recovery at in march 2004 energy cost recovery rider  reduced net revenue by $ 11. 5 million.
 remainder of variance due to 2002 energy cost recovery true-up  in first quarter of 2003 increased net revenue in 2003.
 gross operating revenues , fuel purchased power expenses  other regulatory credits gross operating revenues increased due to 2022 increase of $ 20. 7 million in fuel cost recovery revenues due to increase in energy cost recovery rider effective april 2004 fuel cost recovery revenues in note 2 domestic ; 2022 increase of $ 15. 5 million in grand gulf revenues due to increase in grand gulf rider effective january 2004 ; 2022 increase of $ 13. 9 million in gross wholesale revenue due to increased sales to affiliated systems ; 2022 increase of $ 9.5 million due to volume/weather primarily from increased usage unbilled sales period partially offset by effect milder weather on billed sales 2004.

| ( in millions )
---------------------------- | ---------------
2003 net revenue             | $ 998.7
deferred fuel cost revisions | -16.9 ( 16.9 )
other                        | -3.4 ( 3.4 )
2004 net revenue             | $ 978.4


6.
 principal transactions 2019s revenue consists of realized unrealized gains losses from trading activities.
 trading activities include revenues from fixed income equities credit commodities products foreign exchange transactions managed portfolio basis by primary risk.
 not included table impact of net interest revenue related to trading activities integral part of trading activities 2019 profitability.
 for additional information principal transactions revenue see note a04 to consolidated financial statements for information about net interest revenue related trading activities.
 principal transactions include cva ( credit valuation adjustments on derivatives ) fva ( funding valuation adjustments ) on over-the-counter derivatives.
 adjustments discussed in note 24 to consolidated financial statements.
 table presents principal transactions revenue:.
 ( 1 ) includes revenues from government securities corporate debt municipal securities mortgage securities other debt instruments.
 includes spot forward trading of currencies exchange-traded over-the-counter otc ) currency options  options on fixed income securities interest rate swaps currency swaps  swap options  caps floors  financial futures otc options forward contracts on fixed securities.
 ( 2 ) includes revenues from foreign exchange spot  forward  option swap contracts foreign currency translation ( fx translation ) gains and losses.
 ( 3 ) includes revenues from common  preferred convertible stock  convertible corporate debt  equity-linked notes exchange-traded otc equity options warrants.
 ( 4 ) includes revenues from crude oil refined oil products natural gas commodities trades.
 ( 5 ) includes revenues from structured credit products.

in millions of dollars          | 2018   | 2017   | 2016
------------------------------- | ------ | ------ | ------
interest rate risks ( 1 )       | $ 5186 | $ 5301 | $ 4229
foreign exchange risks ( 2 )    | 1423   | 2435   | 1699
equity risks ( 3 )              | 1346   | 525    | 330
commodity and other risks ( 4 ) | 662    | 425    | 899
credit products and risks ( 5 ) | 445    | 789    | 700
total                           | $ 9062 | $ 9475 | $ 7857