table of contents ( 4 ) increase in cash flows due to timing of inventory purchases longer payment terms with certain vendors.
 to manage working capital operating cash needs we monitor cash conversion cycle , defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable based on rolling three-month average.
 components of cash conversion cycle:.
 ( 1 ) represents rolling three-month average of balance of accounts receivable  net end period divided by average daily net sales for same three-month period.
 incorporates components other miscellaneous receivables.
 ( 2 ) represents rolling three-month average of balance of merchandise inventory end period divided by average daily cost of sales for same three-month period.
 ( 3 ) represents rolling three-month average of combined balance of accounts payable-trade , excluding cash overdrafts accounts payable-inventory financing at end period divided by average daily cost of sales for same three-month period.
 cash conversion cycle was 19 days at december 31 , 2017 and 2016.
 increase in dso driven by higher net sales related accounts receivable for third-party services such as saas  software assurance warranties.
 these services have unfavorable impact on dso as receivable recognized on consolidated balance sheet on gross basis while corresponding sales amount in consolidated statement of operations recorded on net basis.
 also results in favorable impact on dpo as payable recognized on consolidated balance sheet without corresponding cost of sales in statement of operations because cost paid to vendor or third-party service provider recorded as reduction to net sales.
 dpo increased due to mix of payables with certain vendors have longer payment terms.
cash conversion cycle was 19 and 21 days at december 31 , 2016 2015 .
 increase in dso driven by higher net sales related accounts receivable for third-party services saas  software assurance warranties.
 these services unfavorable impact on dso as receivable recognized on balance sheet on gross basis corresponding sales amount in statement of operations recorded on net basis.
 services favorable impact on dpo as payable recognized on balance sheet without corresponding cost of sale in statement of operations cost paid to vendor third-party service provider recorded as reduction to net sales.
 in to impact services on dpo dpo increased due to mix of payables with vendors longer payment terms.
 investing activities net cash used in investing increased $ 15 million in 2017 compared to 2016.
 capital expenditures increased $ 17 million to $ 81 million from $ 64 million for 2017 and 2016 primarily related to improvements to information technology systems.
 net cash used in investing activities decreased $ 289 million in 2016 compared to 2015.
 decrease cash due to completion acquisition of cdw uk in 2015.
 capital expenditures decreased $ 26 million to $ 64 million from $ 90 million for 2016 and 2015 primarily due to spending for new office location in 2015.
 financing activities net cash used in financing activities increased $ 514 million in 2017 compared to 2016.
 increase driven by changes in accounts payable-inventory financing resulted in increase in cash used for financing activities of $ 228 million share repurchases during 2017 in increase in cash used for financing activities of $ 167 million.
 for more information on share repurchase program see part ii , item 5 , 201cmarket for registrant 2019s common equity , related stockholder matters issuer purchases of equity securities.201d increase in cash used for accounts payable-inventory financing driven by termination of one inventory financing agreements in fourth quarter of 2016 , with amounts

( in days )                                 | december 31 , 2017 | december 31 , 2016 | december 31 , 2015
------------------------------------------- | ------------------ | ------------------ | ------------------
days of sales outstanding ( dso ) ( 1 )     | 52                 | 51                 | 48
days of supply in inventory ( dio ) ( 2 )   | 12                 | 12                 | 13
days of purchases outstanding ( dpo ) ( 3 ) | -45 ( 45 )         | -44 ( 44 )         | -40 ( 40 )
cash conversion cycle                       | 19                 | 19                 | 21


table of contents ( e ) adjustments include historical retention costs unusual non-recurring litigation matters secondary-offering-related expenses expenses related to consolidation of office locations north of chicago.
 during year ended december 31 , 2013  recorded ipo- and secondary-offering related expenses of $ 75. 0 million.
 for additional information secondary expenses see note 10 ( stockholder 2019s equity ) to consolidated financial statements.
 ( f ) includes impact of consolidating five months for year ended december 31, 2015 of kelway 2019s financial results.
 ( 4 ) non-gaap net income excludes charges related to amortization of acquisition-related intangible assets non-cash equity-based compensation acquisition and integration expenses gains and losses from extinguishment of long-term debt.
 non-gaap net income is considered non-gaap financial measure.
 non-gaap financial measure is numerical measure of company 2019s performance financial position cash flows excludes or includes amounts not normally included or excluded in most directly comparable measure calculated presented in accordance with gaap.
 non-gaap measures used by us may differ from similar measures other companies.
 believe non-gaap net income provides meaningful information regarding operating performance cash flows ability to meet future debt service  capital expenditures working capital requirements.
 unaudited table sets reconciliation of net income to non-gaap net income for periods presented:.
 acquisition and integration expenses ( c ) 10. 2 2014 2014 2014 gain on remeasurement of equity investment ( d ) ( 98. 1 ) 2014 2014 2014 other adjustments ( e ) 3. 7 ( 0. 3 ) 61. 2 ( 3. 3 ) ( 15. 6 ) aggregate adjustment for income taxes ( f ) ( 64.8 ) ( 103. 0 ) ( 113. 5 ) ( 71. 6 ) ( 106. 8 ) non-gaap net income ( g ) $ 503. 5 $ 409. 9 $ 314. 3 $ 247. 1 $ 198. 8 ( a ) includes amortization expense for acquisition-related intangible assets  customer relationships  customer contracts trade names.
 ( b ) represents our 35% ( 35 % ) share of expense related to equity awards granted by sellers to kelway coworkers in july 2015 prior to acquisition of kelway.
 ( c ) includes expenses related to acquisition of kelway.
 ( d ) represents gain from remeasurement of held 35% ( 35 % ) equity investment to fair value acquisition kelway.
 ( e ) includes expenses related to consolidation of office locations north of chicago secondary- offering-related expenses.
 amount 2013 relates to ipo- secondary-offering related expenses.
 ( f ) based on normalized effective tax rate of 38. 0% ( 38. 0 % ) ( 39. 0% ( 39. 0 % ) prior to kelway acquisition ) except for non- cash equity-based compensation from equity investment gain from remeasurement of 35% ( 35 % ) equity investment to fair value upon acquisition kelway tax effected at rate of 35. 4% ( 35. 4 % ).
 aggregate adjustment for income taxes includes $ 4. 0 million deferred tax benefit recorded during three months year ended december 31 , 2015 tax rate reduction in united kingdom additional tax expense year ended december 31 , 2015 of $ 3. 3 million recording withholding tax on unremitted earnings of canadian subsidiary.
 certain acquisition costs non-deductible.

( in millions )                                                       | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
--------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income                                                            | $ 403.1                        | $ 244.9                        | $ 132.8                        | $ 119.0                        | $ 17.1
amortization of intangibles ( a )                                     | 173.9                          | 161.2                          | 161.2                          | 163.7                          | 165.7
non-cash equity-based compensation                                    | 31.2                           | 16.4                           | 8.6                            | 22.1                           | 19.5
non-cash equity-based compensation related to equity investment ( b ) | 20.0                           | 2014                           | 2014                           | 2014                           | 2014
net loss on extinguishments of long-term debt                         | 24.3                           | 90.7                           | 64.0                           | 17.2                           | 118.9
acquisition and integration expenses ( c )                            | 10.2                           | 2014                           | 2014                           | 2014                           | 2014
gain on remeasurement of equity investment ( d )                      | -98.1 ( 98.1 )                 | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( e )                                               | 3.7                            | -0.3 ( 0.3 )                   | 61.2                           | -3.3 ( 3.3 )                   | -15.6 ( 15.6 )
aggregate adjustment for income taxes ( f )                           | -64.8 ( 64.8 )                 | -103.0 ( 103.0 )               | -113.5 ( 113.5 )               | -71.6 ( 71.6 )                 | -106.8 ( 106.8 )
non-gaap net income ( g )                                             | $ 503.5                        | $ 409.9                        | $ 314.3                        | $ 247.1                        | $ 198.8


management 2019s discussion analysis of financial condition results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) liquidity capital resources cash flow overview tables summarize key financial data relating to our liquidity , capital resources uses of capital.
 1 reflects net income adjusted for depreciation amortization of fixed assets intangible assets , amortization of restricted stock other non-cash compensation  net losses on sales of businesses deferred income taxes.
 2 reflects changes in accounts receivable , accounts receivable billable to clients  other current assets  accounts payable accrued liabilities.
 operating activities due to seasonality of business  we typically use cash from working capital in first nine months of year  largest impact in first quarter  generate cash from working capital in fourth quarter  driven by seasonally strong media spending by clients.
 quarterly annual working capital results impacted by fluctuating annual media spending budgets of clients changing media spending patterns year across various countries.
 timing of media buying on behalf of clients across various countries affects working capital operating cash flow can be volatile.
 in most businesses agencies enter into commitments to pay production media costs on behalf of clients.
 extent possible we pay production media charges after received funds from clients.
 amounts involved , exceed our revenues  primarily affect level of accounts receivable , accounts payable  accrued liabilities contract liabilities.
 assets include both cash received accounts receivable from clients for pass-through arrangements, liabilities include amounts owed on behalf of clients to media production suppliers.
 accrued liabilities affected by timing of certain other payments.
 for example annual cash incentive awards accrued throughout year generally paid during first quarter of subsequent year.
net cash provided operating activities 2018 was $ 565. 1  decrease of $ 316. 7 compared to 2017  primarily result of increase in working capital usage of $ 436. 4.
 working capital 2018 impacted by spending levels clients compared to 2017.
 working capital usage both primarily attributable to media businesses.
 net cash operating activities 2017 was $ 881. 8 , increase of $ 369. 0 compared to 2016  primarily result of improvement in working capital usage of $ 415. 6.
 working capital in 2017 benefited from spending patterns clients compared to 2016.
 investing activities net cash used investing activities 2018 consisted of payments for acquisitions of $ 2309. 8 related mostly to acxiom acquisition , payments for capital expenditures of $ 177. 1  related mostly to leasehold improvements and computer hardware and software.

cash flow data                                                                 | years ended december 31 , 2018 | years ended december 31 , 2017 | years ended december 31 , 2016
------------------------------------------------------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile to net cash provided by operating activities1 | $ 1013.0                       | $ 852.1                        | $ 1018.6
net cash ( used in ) provided by working capital2                              | -431.1 ( 431.1 )               | 5.3                            | -410.3 ( 410.3 )
changes in other non-current assets and liabilities                            | -16.8 ( 16.8 )                 | 24.4                           | -95.5 ( 95.5 )
net cash provided by operating activities                                      | $ 565.1                        | $ 881.8                        | $ 512.8
net cash used in investing activities                                          | -2491.5 ( 2491.5 )             | -196.2 ( 196.2 )               | -263.9 ( 263.9 )
net cash provided by ( used in ) financing activities                          | 1853.2                         | -1004.9 ( 1004.9 )             | -666.4 ( 666.4 )


company had capital loss carryforwards for federal income tax purposes of $ 3844 and $ 4357 at december 31 , 2013 and 2012  respectively.
 company recognized full valuation allowance for capital loss carryforwards because not believe these losses more likely not to be recovered.
 company files income tax returns in united states federal jurisdiction and various state and foreign jurisdictions.
 with few exceptions company no longer subject to.
 federal , state local non-u. income tax examinations by tax authorities for years before 2007.
 company has state income tax examinations in progress and does not expect material adjustments result.
 patient protection and affordable care act ( 201cppaca 201d ) became law on march 23 , 2010 , health care and education reconciliation act of 2010 became law on march 30 , 2010  amendments to certain aspects of ppaca ( 201cacts 201d ).
 ppaca changes tax treatment of federal subsidies paid to sponsors of retiree health benefit plans benefit actuarially equivalent to benefits under medicare part d.
 acts make subsidy payments taxable in tax years beginning after december 31 , 2012 company followed original accounting for underfunded status of other postretirement benefits for medicare part d adjustment recorded reduction in deferred tax assets and increase in regulatory assets amounting to $ 6241 and $ 6432 at december 31, 2013 and 2012 .
 following table summarizes changes in company 2019s gross liability , excluding interest penalties for unrecognized tax benefits:.
 during second quarter of 2013  company adopted updated income tax guidance reclassified as of december 31 , 2012 $ 74360 of unrecognized tax benefit from other long-term liabilities to deferred income taxes to conform to current presentation in consolidated balance sheets.
total balance in table above not include interest penalties of $ 242 and $ 260 as of december 31 , 2013 and 2012  recorded as component of income tax expense.
 majority of increased tax position attributable to temporary differences.
 increase in 2013 current period tax positions related primarily to company 2019s change in tax accounting method filed in 2008 for repair maintenance costs on utility assets.
 company not anticipate material changes to unrecognized tax benefits next year.
 if company sustains all positions at december 31 , 2013 2012 , unrecognized tax benefit of $ 7439 and $ 7532 , excluding interest penalties would impact company 2019s effective tax rate.

balance at january 1 2012                              | $ 158578
------------------------------------------------------ | ----------------
increases in current period tax positions              | 40620
decreases in prior period measurement of tax positions | -18205 ( 18205 )
balance at december 31 2012                            | $ 180993
increases in current period tax positions              | 27229
decreases in prior period measurement of tax positions | -30275 ( 30275 )
balance at december 31 2013                            | $ 177947


mastercard incorporated notes to consolidated financial statements 2014continued in september 2010  company 2019s board of directors authorized plan for to repurchase up to $ 1 billion of class common stock in open market transactions.
 company did not repurchase shares under plan during 2010.
 as of february 16 , 2011  company had completed repurchase of approximately 0. 3 million shares class common stock at cost of approximately $ 75 million.
 note 18.
 share based payment other benefits in may 2006  company implemented mastercard incorporated 2006 long-term incentive plan amended and restated of october 13, 2008 ( 201cltip 201d ).
 ltip shareholder-approved omnibus plan permits grant of various equity awards to employees.
 company granted restricted stock units ( 201crsus 201d ) non-qualified stock options ( 201coptions 201d ) performance stock units ( 201cpsus 201d ) under ltip.
 rsus generally vest after three to four years.
 options expire ten years from date of grant vest over four years from date of grant.
 psus generally vest after three years.
 company made one-time grant to all non-executive management employees for total of approximately 440 thousand rsus ( 201cfounders 2019 grant 201d ).
 founders 2019 grant rsus vested three years from date of grant.
 company uses straight-line method of attribution for expensing equity awards.
 compensation expense recorded net of estimated forfeitures.
 estimates adjusted as appropriate.
 upon termination of employment excluding retirement all participant 2019s unvested awards are forfeited.
 when participant terminates employment due to retirement participant generally retains all awards without providing additional service to company.
eligible retirement dependent upon age years of service , : age 55 with ten years service , age 60 with five years service age 65 with two years service.
 compensation expense recognized over shorter of vesting periods stated in ltip , or date individual becomes eligible to retire.
 11550000 shares of class a common stock reserved for equity awards under ltip.
 ltip permits issuance of shares of class b common stock , no such shares reserved for issuance.
 shares issued as result of option exercises conversions of rsus and psus expected to be funded primarily with issuance of new shares of class a common stock.
 stock options fair value of each option estimated on date of grant using black-scholes option pricing model.
 following table presents weighted-average assumptions used in valuation resulting weighted- average fair value per option granted for years ended december 31:.
 risk-free rate of return based on u. s.
 treasury yield curve in effect on date of grant.
 company utilizes simplified method for calculating expected term of option based on vesting terms contractual life of option.
 expected volatility for options granted during 2010 and 2009 based on average of implied volatility of mastercard blend of historical volatility of mastercard and historical volatility of group of companies management believes generally comparable to

| 2010             | 2009             | 2008
---------------------------------------------- | ---------------- | ---------------- | ----------------
risk-free rate of return                       | 2.7% ( 2.7 % )   | 2.5% ( 2.5 % )   | 3.2% ( 3.2 % )
expected term ( in years )                     | 6.25             | 6.17             | 6.25
expected volatility                            | 32.7% ( 32.7 % ) | 41.7% ( 41.7 % ) | 37.9% ( 37.9 % )
expected dividend yield                        | 0.3% ( 0.3 % )   | 0.4% ( 0.4 % )   | 0.3% ( 0.3 % )
weighted-average fair value per option granted | $ 84.62          | $ 71.03          | $ 78.54


likely not some portion or all deferred tax assets not be realized.
 accruals for deferred tax assets liabilities subject to significant judgment by management reviewed adjusted routinely based on changes in facts circumstances.
 material changes in accruals may occur in future  based on progress of ongoing tax audits , changes in legislation resolution of pending tax matters.
 forward-looking estimates providing 2011 forward-looking estimates in this section.
 estimates based on examination historical operating trends , information used to prepare december 31, 2010 , reserve reports other data in our possession or available from third parties.
 forward-looking estimates report prepared assuming demand , curtailment producibility general market conditions for oil , gas and ngls during 2011 similar to 2010  unless otherwise noted.
 reference to 201cdisclosure regarding forward-looking statements 201d at beginning of report.
 amounts related to canadian operations converted to.
 dollars using estimated average 2011 exchange rate of $ 0. 95 dollar to $ 1. 00 canadian dollar.
 during 2011  our operations substantially comprised of ongoing north america onshore operations.
 also international operations in brazil and angola divesting.
 entered agreements to sell assets in brazil for $ 3. 2 billion assets in angola for $ 70 million , plus contingent consideration.
 result of divestitures all revenues , expenses capital related to international operations reported as discontinued operations in financial statements.
 all forward-looking estimates in document exclude amounts related to international operations  unless otherwise noted.
 north america onshore operating items following 2011 estimates relate only to our north america onshore assets.
 oil , gas and ngl production below are our estimates of oil , gas and ngl production for 2011.
estimate combined oil , gas ngl production total approximately 236 to 240 mmboe.
 ( mmbbls ) mmbbls mmboe ).
 oil and gas prices expect 2011 average prices for oil and gas production from each operating areas to differ from nymex price set forth in following table.
 expected ranges for prices exclusive of anticipated effects financial contracts presented in 201ccommodity price risk management 201d section below.
 nymex price for oil determined using monthly average of settled prices each trading day for benchmark west texas intermediate crude oil delivered at cushing , oklahoma.
 nymex price for gas determined using first-of-month south louisiana henry hub price index published monthly inside

| oil ( mmbbls ) | gas ( bcf ) | ngls ( mmbbls ) | total ( mmboe )
--------------------- | -------------- | ----------- | --------------- | ---------------
u.s . onshore         | 17             | 736         | 34              | 174
canada                | 28             | 199         | 3               | 64
north america onshore | 45             | 935         | 37              | 238


notes to consolidated financial statements 2014 ( continued ) ucs.
 as of may 31 , 2009  $ 55. 0 million of purchase price held in escrow ( 201cescrow account 201d ).
 prior to acquisition of ucs  former parent company of ucs pledged company 2019s stock as collateral for third party loan ( 201cthe loan 201d ) matures on september 24 , 2009.
 upon repayment of loan stock released to us $ 35. 0 million of purchase price released to seller.
 remaining $ 20. 0 million remain in escrow until january 1, 2013 to satisfy liabilities discovered post-closing existed at purchase date.
 purpose of acquisition was to establish acquiring presence in russian market foundation for other direct acquiring opportunities in central and eastern europe.
 purchase price determined by analyzing historical and prospective financial statements applying relevant purchase price multiples.
 business acquisition not significant to consolidated financial statements not provided pro forma information relating to acquisition.
 upon acquisition of ucs global payments assumed indirect guarantee of loan.
 in event default by third-party debtor required to transfer all shares of ucs to trustee or pay amount outstanding under loan.
 at may 31 , 2009 maximum potential amount of future payments under guarantee was $ 44. 1 million represents total outstanding under loan  consisting of $ 21. 8 million due and paid on june 24 , 2009 and $ 22. 3 million due on september 24 , 2009.
 should third-party debtor default on final payment global payments would pay total amount outstanding seek to be reimbursed for payments made from $ 55 million held in escrow account.
 did not record obligation for guarantee determined fair value of guarantee is de minimis.
 following table summarizes preliminary purchase price allocation ( in thousands ) :.
goodwill associated with acquisition non-deductible for tax.
 customer-related intangible assets have amortization periods 9 to 15 years.
 trademark has amortization period 10 years.
 global payments asia-pacific philippines incorporated september 4 , 2008 global payments asia-pacific , limited ( 201cgpap 201d )  entity conduct merchant acquiring business in asia-pacific region indirectly acquired global payments asia- pacific philippines incorporated ( 201cgpap philippines 201d ) newly formed company hsbc asia pacific contributed merchant acquiring business in philippines.
 own 56% ( 56 % ) of gpap and hsbc asia pacific

total current assets                                  | $ 10657
----------------------------------------------------- | ----------------
goodwill                                              | 35431
customer-related intangible assets                    | 16500
trademark                                             | 3100
property and equipment                                | 19132
other long-term assets                                | 13101
total assets acquired                                 | 97921
current liabilities                                   | -7245 ( 7245 )
notes payable                                         | -8227 ( 8227 )
deferred income taxes and other long-term liabilities | -7449 ( 7449 )
total liabilities assumed                             | -22921 ( 22921 )
net assets acquired                                   | $ 75000


shareowner return performance graph performance graph and related information not deemed 201csoliciting material 201d or to be 201cfiled 201d with sec , nor such information incorporated into future filing under securities act of 1933 or securities exchange act of 1934 , each as amended , except company specifically incorporates such information into such filing.
 graph shows five-year comparison of cumulative total shareowners 2019 returns for our class b common stock , standard & poor 2019s 500 index dow jones transportation average.
 comparison of total cumulative return on investment , change in quarterly stock price plus reinvested dividends for each quarterly periods , assumes $ 100 invested on december 31 , 2012 in standard & poor 2019s 500 index , dow jones transportation average and class b common stock.

| 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 146.54   | $ 159.23   | $ 148.89   | $ 182.70   | $ 195.75
standard & poor 2019s 500 index  | $ 100.00   | $ 132.38   | $ 150.49   | $ 152.55   | $ 170.79   | $ 208.06
dow jones transportation average | $ 100.00   | $ 141.38   | $ 176.83   | $ 147.19   | $ 179.37   | $ 213.49


sources blackrock 2019s operating cash include investment advisory  administration fees securities lending revenue  performance fees  revenue from blackrock solutions advisory products services other revenue distribution fees.
 blackrock uses cash to pay operating expense  interest principal on borrowings  income taxes dividends on blackrock 2019s capital stock  repurchases company 2019s stock capital expenditures purchases of co-investments seed investments.
 for details company 2019s gaap cash flows from operating investing financing activities see consolidated statements of cash flows in part ii , item 8 of filing.
 cash flows from operating activities  excluding impact consolidated sponsored investment funds include receipt of investment advisory administration fees securities lending revenue performance fees offset by operating expenses normal business including year-end incentive compensation accrued for prior year.
 cash outflows from investing activities  excluding impact funds for 2016 were $ 58 million reflected $ 384 million of investment purchases  $ 119 million of purchases of property and equipment $ 30 million related to acquisition  offset by $ 441 million of net proceeds from sales maturities of certain investments.
 cash outflows from financing activities  excluding impact consolidated sponsored investment funds for 2016 were $ 2831 million resulting from $ 1. 4 billion of share repurchases  including $ 1. 1 billion in open market- transactions $ 274 million of employee tax withholdings related to employee stock transactions $ 1. 5 billion of cash dividend payments offset by $ 82 million of excess tax benefits from vested stock-based compensation awards.
 company manages financial condition and funding to maintain liquidity for business.
liquidity resources at december 31, 2016 and 2015 were follows : ( in millions ) december 31  cash and cash equivalents 1 ) $ 6091 $ 6083 cash cash equivalents held by consolidated vres 2 ) ( 53 ) ( 100 ).
 total liquidity resources 3 ) $ 10038 $ 9983 percentage of cash and cash equivalents held by company 2019s.
 subsidiaries was approximately 50% ( 50 % ) at december 31 , 2016 and 2015.
 see net capital requirements for more information.
 company cannot access such cash in operating activities.
 amounts do not reflect year-end incentive compensation accruals of approximately $ 1. 3 billion and $ 1. 5 billion for 2016 and 2015  paid in first quarter of following year.
 total liquidity resources increased $ 55 million during 2016  primarily reflecting cash flows from operating activities partially offset by cash payments of 2015 year-end incentive awards, share repurchases of $ 1. 4 billion cash dividend payments of $ 1. 5 billion.
 significant portion of company 2019s $ 2414 million of total investments  is illiquid in nature cannot be convertible to cash.
 share repurchases.
 company repurchased 3. 3 million common shares in open market-transactions under share repurchase program for $ 1. 1 billion during 2016.
 at december 31 , 2016 3 million shares still authorized to be repurchased.
 in january 2017 board of directors approved increase in shares be repurchased under company 2019s existing share repurchase program to allow for repurchase of additional 6 million shares for total up to 9 million shares of blackrock common stock.
 net capital requirements.
company required to maintain net capital in regulated subsidiaries within jurisdictions partially maintained by retaining cash and cash equivalent investments in subsidiaries jurisdictions.
 subsidiaries company may be restricted in ability to transfer cash between different jurisdictions and to parents.
 transfers of cash between international jurisdictions including repatriation to united states may have adverse tax consequences discourage transfers.
 blackrock institutional trust company .
 201cbtc 201d ) chartered as a national bank does not accept client deposits powers limited to trust and fiduciary activities.
 btc provides investment management services including investment advisory and securities lending agency services to institutional investors other clients.
 btc subject to regulatory capital and liquid asset requirements by office of comptroller of currency.
 at december 31 , 2016 and 2015  company required to maintain approximately $ 1. 4 billion and $ 1. 1 billion  respectively in net capital in certain regulated subsidiaries including btc  entities regulated by financial conduct authority prudential regulation authority in united kingdom company 2019s broker-dealers.
 company in compliance with all applicable regulatory net capital requirements.
 undistributed earnings of foreign subsidiaries.
 as of december 31 , 2016 company not provided for.
 federal and state income taxes on approximately $ 5. 3 billion of undistributed earnings of foreign subsidiaries.
 such earnings considered indefinitely reinvested outside united states.
 company current plans do not demonstrate need to repatriate these funds.
 short-term borrowings 2016 revolving credit facility.
 company 2019s credit facility has aggregate commitment amount of $ 4. 0 billion amended in april 2016 to extend maturity date to march 2021 ( 201c2016 credit facility 201d ).
2016 credit facility permits company request additional $ 1. 0 billion borrowing capacity  subject to lender credit approval increasing overall size 2016 credit facility to aggregate principal amount not to exceed $ 5. 0 billion.
 interest on borrowings outstanding accrues at rate based on applicable london interbank offered rate plus spread.
 2016 credit facility requires company not to exceed maximum leverage ratio ( ratio net debt to

( in millions )                                           | december 31 2016 | december 31 2015
--------------------------------------------------------- | ---------------- | ----------------
cash and cash equivalents ( 1 )                           | $ 6091           | $ 6083
cash and cash equivalents held by consolidated vres ( 2 ) | -53 ( 53 )       | -100 ( 100 )
subtotal                                                  | 6038             | 5983
credit facility 2014 undrawn                              | 4000             | 4000
total liquidity resources ( 3 )                           | $ 10038          | $ 9983


entergy texas , inc.
 subsidiaries management 2019s financial discussion analysis results of operations net income 2017 compared to 2016 net income decreased $ 31. 4 million due to lower net revenue higher depreciation amortization expenses higher other operation maintenance expenses higher taxes income taxes.
 2016 compared to 2015 net income increased $ 37. 9 million due to lower operation maintenance expenses asset write-off receivable associated with spindletop gas storage facility in 2015 higher net revenue.
 net revenue 2017 compared to 2016 net revenue consists of operating revenues net of 1 fuel  fuel-related expenses  gas purchased for resale 2 ) purchased power expenses 3 ) other regulatory charges.
 analysis of change in net revenue comparing 2017 to 2016.
 amount ( in millions ).
 net wholesale revenue variance due to lower net capacity revenues from termination of purchased power agreements between entergy louisiana entergy texas in august 2016.
 purchased power capacity variance due to increased expenses due to capacity cost changes for ongoing purchased power capacity contracts.
 transmission revenue variance due to decrease in transmission revenues allocated by miso.
 reserve equalization variance due to absence of reserve equalization expenses in 2017 entergy texas 2019s exit from system agreement in august 2016.
 see note 2 to financial statements for discussion of system agreement.

| amount ( in millions )
------------------------ | ----------------------
2016 net revenue         | $ 644.2
net wholesale revenue    | -35.1 ( 35.1 )
purchased power capacity | -5.9 ( 5.9 )
transmission revenue     | -5.4 ( 5.4 )
reserve equalization     | 5.6
retail electric price    | 19.0
other                    | 4.4
2017 net revenue         | $ 626.8


notes to consolidated financial statements continued ) note 7 2014income taxes continued ) as of september 30 , 2006  company has state and foreign tax loss and state credit carryforwards  tax effect is $ 55 million.
 certain carryforwards  tax effect $ 12 million  expire between 2016 and 2019.
 portion of carryforwards acquired from company 2019s previous acquisitions utilization subject to limitations by internal revenue code.
 remaining benefits from tax losses and credits do not expire.
 as of september 30 , 2006 and september 24 , 2005  valuation allowance of $ 5 million recorded against deferred tax asset for benefits of state operating losses may not be realized.
 management believes likely not forecasted income  including income generated result of tax planning strategies  with tax effects of deferred tax liabilities will sufficient to fully recover remaining deferred tax assets.
 reconciliation of provision for income taxes  with amount computed by applying statutory federal income tax rate ( 35% ( 35 % ) in 2006 , 2005 , 2004 ) to income before provision for income taxes  as follows ( in millions ) : 2006 2005 2004 as restated ( 1 ) 1 ).
 1 ) see note 2 , 201crestatement of consolidated financial statements. 201d company 2019s income taxes payable reduced by tax benefits from employee stock options.
 company receives income tax benefit calculated as difference between fair market value of stock issued at time exercise and option price  tax effected.
 net tax benefits from employee stock option transactions were $ 419 million , $ 428 million ( restated ( 1 ) )  and $ 83 million ( as restated ( 1 ) ) in 2006 , 2005 , and 2004  reflected as increase to common stock in consolidated statements of shareholders 2019 equity.

| 2006         | 2005 as restated ( 1 ) | 2004 as restated ( 1 )
------------------------------------------------------ | ------------ | ---------------------- | ----------------------
computed expected tax                                  | $ 987        | $ 633                  | $ 129
state taxes net of federal effect                      | 86           | -19 ( 19 )             | -5 ( 5 )
indefinitely invested earnings of foreign subsidiaries | -224 ( 224 ) | -98 ( 98 )             | -31 ( 31 )
nondeductible executive compensation                   | 11           | 14                     | 12
research and development credit net                    | -12 ( 12 )   | -26 ( 26 )             | -5 ( 5 )
other items                                            | -19 ( 19 )   | -24 ( 24 )             | 4
provision for income taxes                             | $ 829        | $ 480                  | $ 104
effective tax rate                                     | 29% ( 29 % ) | 27% ( 27 % )           | 28% ( 28 % )


vertex pharmaceuticals incorporated notes to consolidated financial statements continued f.
 marketable securities unrealized losses in portfolio relate to various debt securities including u. s.
 government securities u. s.
 government-sponsored enterprise securities corporate debt securities asset-backed securities.
 unrealized losses primarily due to increases in interest rates.
 investments held by company are high investment grade no adverse credit events.
 company has ability intent to hold investments until recovery of fair value maturity company not consider investments-temporarily impaired as of december 31, 2006 and 2005.
 gross realized gains and losses for 2006 were $ 4000 and $ 88000 respectively.
 gross gains and losses for 2005 were $ 15000 and $ 75000 .
 gross realized gains and losses for 2004 were $ 628000 and $ 205000 .
.
 restricted cash at december 31 , 2006 and 2005  company held $ 30. 3 million and $ 41. 5 million respectively in cash.
 2005 balance was held in deposit with certain banks predominantly to collateralize conditional stand-by letters of credit in names of company 2019s landlords operating lease agreements.
 h.
 property and equipment property consist of at december 31 ( in thousands ) : depreciation and amortization expense for years ended december 31 , 2006 , 2005 and 2004 was $ 25. 4 million , $ 26. 3 million and $ 28. 4 million  respectively.
 in 2006 and 2005  company wrote off certain assets fully depreciated no longer utilized.
 no effect on company 2019s net property and equipment.
 company wrote off or sold certain assets not fully depreciated.
 net loss on disposal of assets was $ 10000 for 2006  $ 344000 for 2005 and $ 43000 for 2004.
.
altus investment altus pharmaceuticals , inc.
 ( 201caltus 201d ) completed initial public offering january 2006.
 completion offering vertex owned 817749 shares common stock warrants to purchase 1962494 shares common stock ( 201caltus warrants 201d ).
 company  completion.
 furniture equipment $ 97638 $ 98387 leasehold improvements 74875 66318 computers 19733 18971 software 21274 18683 total property and equipment , gross 213520 202359 less accumulated depreciation amortization 151985 147826 total property equipment net $ 61535 $ 54533

| 2006    | 2005
---------------------------------------------- | ------- | -------
furniture and equipment                        | $ 97638 | $ 98387
leasehold improvements                         | 74875   | 66318
computers                                      | 19733   | 18971
software                                       | 21274   | 18683
total property and equipment gross             | 213520  | 202359
less accumulated depreciation and amortization | 151985  | 147826
total property and equipment net               | $ 61535 | $ 54533


$ 55 million reported as 201cinvestments 201d in consolidated balance sheet 201cpurchases of marketable securities investments 201d in consolidated statement of cash flows.
 recovery of $ 25 million of investment in 2007 reduced 201cinvestments 201d shown in cash flows within 201cproceeds from sale of marketable securities investments. 201d investment discussed under preceding section industrial and transportation business.
 additional purchases of investments include survivor benefit insurance and equity investments.
 cash flows from financing activities years ended december 31.
 total debt at december 31  2007 was $ 4. 920 billion up from $ 3. 553 billion at year-end 2006.
 net change in short-term debt due to commercial paper activity.
 2007 repayment of debt for maturities greater than 90 days comprised of commercial paper repayments of $ 1. 15 billion november 2007 redemption of $ 322 million in convertible notes.
 2007 proceeds from debt included long-term debt commercial paper issuances totaling approximately $ 4 billion.
 comprised of eurobond issuances in december 2007 and july 2007 totaling $ 1. 5 billion.
 march 2007 long-term debt issuance of $ 750 million december 2007 fixed rate note issuance of $ 500 million plus commercial paper issuances ( maturities greater than 90 days ) of approximately $ 1. 25 billion.
 increases in long-term debt used to fund share repurchase activities.
 company accelerated purchases of treasury stock compared buying back $ 3. 2 billion in shares in 2007.
 total debt was 30% ( 30 % ) of total capital debt plus compared with 26% ( 26 % ) at year-end 2006.
debt securities including 2007 debt issuances company 2019s shelf registration dealer remarketable securities convertible notes discussed in note 10.
 company has "well-known seasoned issuer" shelf registration statement effective february 24 , 2006 to register indeterminate amount of debt or equity securities for future sales.
 on june 15 , 2007 company registered 150718 shares of's common stock under shelf on behalf of for sole benefit selling stockholders connection with company's acquisition of assets of diamond productions .
 company intends to use proceeds from future securities sales for general corporate purposes.
 in june 2007 company established medium-term notes program up to $ 3 billion of medium-term notes may be offered.
 december 2007 3m issued five-year , $ 500 million , fixed rate note with coupon rate of 4. 65% (. % ) under medium-term notes program.
 program has remaining capacity of $ 2. 5 billion as of december 31 , 2007.
 company 2019s $ 350 million of dealer remarketable securities current portion of long-term debt ) remarketed for one year in december 2007.
 december 31 , 2007 $ 350 million of dealer remarketable securities final maturity 2010 ) and $ 62 million of floating rate notes ( final maturity 2044 ) classified as current portion of long- term debt result of put provisions associated with debt instruments.
 company has convertible notes with book value of $ 222 million at december 31 , 2007.
 next put option date for convertible notes is november 2012.
 in november 2007 364598 outstanding bonds redeemed payout from 3m of approximately $ 322 million.
 repurchases of common stock to support company 2019s stock-based employee compensation plans for other corporate purposes.
february 2007, 3m 2019s board directors authorized two-year share repurchase up $ 7. 0 billion period february 12 , 2007 to february 28 , 2009.
 as december 31 , 2007  approximately $ 4. 1 billion remained available for repurchase.
 refer table 201cissuer purchases equity securities 201d part ii , item 5  more information.

( millions )                                           | 2007             | 2006             | 2005
------------------------------------------------------ | ---------------- | ---------------- | ----------------
change in short-term debt 2014 net                     | $ -1222 ( 1222 ) | $ 882            | $ -258 ( 258 )
repayment of debt ( maturities greater than 90 days )  | -1580 ( 1580 )   | -440 ( 440 )     | -656 ( 656 )
proceeds from debt ( maturities greater than 90 days ) | 4024             | 693              | 429
total cash change in debt                              | $ 1222           | $ 1135           | $ -485 ( 485 )
purchases of treasury stock                            | -3239 ( 3239 )   | -2351 ( 2351 )   | -2377 ( 2377 )
reissuances of treasury stock                          | 796              | 523              | 545
dividends paid to stockholders                         | -1380 ( 1380 )   | -1376 ( 1376 )   | -1286 ( 1286 )
excess tax benefits from stock-based compensation      | 74               | 60               | 54
distributions to minority interests and other 2014 net | -20 ( 20 )       | -52 ( 52 )       | -76 ( 76 )
net cash used in financing activities                  | $ -2547 ( 2547 ) | $ -2061 ( 2061 ) | $ -3625 ( 3625 )


notes to consolidated financial statements 2014 ( continued ) ( amounts in millions  except per share amounts ) guarantees we have certain contingent obligations under guarantees of our subsidiaries ( 201cparent company guarantees 201d ) relating principally to credit facilities , guarantees of media payables operating leases.
 amount of parent company guarantees was $ 255. 7 and $ 327. 1 as of december 31 , 2008 and 2007 , respectively.
 in event of non-payment by applicable subsidiary of obligations covered by guarantee we obligated to pay amounts covered by guarantee.
 as of december 31 , 2008 no material assets pledged as security for parent company guarantees.
 contingent acquisition obligations structured certain acquisitions with additional contingent purchase price obligations to reduce potential risk with negative future performance of acquired entity.
 entered into agreements may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries.
 amounts to transactions based on estimates of future financial performance of acquired entity timing of exercise of rights changes in foreign currency exchange rates other factors.
 not recorded liability for these items since definitive amounts payable not determinable or distributable.
 when contingent acquisition obligations met and consideration determinable and distributable record fair value of this consideration as additional cost of acquired entity.
 certain acquisitions contain deferred payments fixed and determinable on acquisition date.
 in such cases record liability for payment record consideration as additional cost of acquired entity on acquisition date.
 if deferred payments and purchases of additional interests after effective date of purchase contingent upon future employment of former owners recognize these payments as compensation expense.
 compensation expense determined based on terms and conditions of respective acquisition agreements and employment terms of former owners of acquired businesses.
future expense not allocated to assets and liabilities acquired amortized over required employment terms of former owners.
 following table details estimated liability with respect to our contingent acquisition obligations and estimated amount paid in event of exercise at earliest exercise date.
 certain put options exercisable at discretion of minority owners as of december 31 , 2008.
 estimated acquisition payments of $ 5. 5 included within total payments expected to made in 2009 in table below if not made in 2009 , will continue to carry forward into 2010 or beyond until exercised or expire.
 all payments contingent upon achieving projected operating performance targets and satisfying other conditions specified in related agreements subject to revisions as earn-out periods progress.
 as of december 31 , 2008  estimated future contingent acquisition obligations payable in cash are as follows:.
 entered into certain acquisitions contain both put and call options with similar terms and conditions.
 in instances included related estimated contingent acquisition obligation in period when earliest related option is exercisable.
 result of revisions made during 2008 to eitf topic no.
 d-98 , classification and measurement of redeemable securities ( 201ceitf d-98 201d )

| 2009   | 2010   | 2011    | 2012   | 2013   | thereafter | total
--------------------------------------------- | ------ | ------ | ------- | ------ | ------ | ---------- | -------
deferred acquisition payments                 | $ 67.5 | $ 32.1 | $ 30.1  | $ 4.5  | $ 5.7  | $ 2014     | $ 139.9
put and call options with affiliates1         | 11.8   | 34.3   | 73.6    | 70.8   | 70.2   | 2.2        | 262.9
total contingent acquisition payments         | 79.3   | 66.4   | 103.7   | 75.3   | 75.9   | 2.2        | 402.8
less cash compensation expense included above | 2.6    | 1.3    | 0.7     | 0.7    | 0.3    | 2014       | 5.6
total                                         | $ 76.7 | $ 65.1 | $ 103.0 | $ 74.6 | $ 75.6 | $ 2.2      | $ 397.2


years ended december 31 , 2008 , 2007 2006  due to ineffectiveness amounts excluded from assessment hedge effectiveness not significant.
 for contracts outstanding at december 31 , 2008 obligation to purchase. s.
 dollars sell euros  japanese yen  british pounds canadian dollars australian dollars korean won purchase swiss francs sell. s.
 dollars at set maturity dates from january 2009 through june 2011.
 notional amounts of outstanding forward contracts with third parties to purchase. s.
 dollars at december 31 , 2008 were $ 1343. 0 million.
 notional amounts of outstanding forward contracts with third parties to purchase swiss francs at december 31 , 2008 were $ 207. 5 million.
 fair value of outstanding derivative instruments recorded on balance sheet at december 31, 2008 together with settled derivatives where hedged item not affected earnings net unrealized gain of $ 32. 7 million , or $ 33. 0 million net of taxes deferred in other comprehensive income  $ 16. 4 million , or $ 17. 9 million , net of taxes expected to be reclassified to earnings over next twelve months.
 enter into foreign currency forward exchange contracts with terms of one month to manage currency exposures for assets liabilities denominated in currency other than entity 2019s functional currency.
 foreign currency remeasurement gains/losses recognized in earnings under.
 52 201cforeign currency translation generally offset with gains/losses on foreign currency forward exchange contracts in same reporting period.
 other comprehensive income 2013 refers to revenues  expenses gains losses under accounting principles included in comprehensive income but excluded from net earnings amounts recorded directly as adjustment to stockholders 2019 equity.
comprehensive income comprised of foreign currency translation adjustments unrealized foreign currency hedge gains losses gains losses on available-for-sale securities amortization of prior service costs unrecognized gains losses in actuarial assumptions.
 2006 adopted sfas 158 , 201cemployers 2019 accounting for defined benefit pension postretirement plans 2013 amendment of fasb statements no.
 87 , 88  106 132 ( r ). 201d statement required recognition of funded status of benefit plans in statement financial position recognition deferred gains or losses in other comprehensive income.
 recorded unrealized loss of $ 35. 4 million in other comprehensive income during 2006 adoption sfas 158.
 components of accumulated other comprehensive income in millions ) : balance at december 31  comprehensive income ( loss ) balance at december 31.
 2008 reclassified investment previously accounted for under equity method to available-for-sale investment no longer exercised influence over third-party investee.
 investment marked-to- market in accordance with sfas 115 , 201caccounting for certain investments in debt equity securities 201d in net unrealized gain of $ 23. 8 million in other comprehensive income for 2008.
 unrealized gain reclassified to income statement when sold investment in 2008 for total proceeds of $ 54. 9 million gross realized gain of $ 38. 8 million included in interest other income.
 basis of securities determined based on consideration paid at time of acquisition.
 treasury stock 2013 account for repurchases of common stock under cost method present treasury stock as reduction of shareholders equity.
 may reissue common stock held in treasury for limited purposes.
 accounting pronouncements 2013 september 2006 fasb issued sfas no.
157 , 201cfair value measurements  201d defines fair value establishes framework for measuring fair value accepted accounting principles expands disclosures fair value measurements.
 statement require new fair value measurements provides guidance measure fair value fair value hierarchy classify source information.
 sfas no.
 157 effective for financial statements fiscal years after november 15 , 2007 interim periods fiscal years.
 february 2008  fasb issued fasb staff position ( fsp ) no.
 sfas 157-2  delays effective date provisions of sfas no.
 157 non-financial assets liabilities measured at fair value non-recurring basis until fiscal years after november 15 , 2008.
 full adoption of sfas no.
 157 not expected material impact on consolidated financial statements results of operations.
 z i m m e r h o l d i n g s , i n c.
 2 0 0 8 f o r m 1 0 - k a n n u a l r e p o r t notes to consolidated financial statements continued ) %%transmsg*** transmitting job : c48761 pcn : 046000000 ***%%pcmsg|46 |00009|yes|no|02/24/2009 19:24|0|0|page valid  no graphics -- color : d|

| balance at december 31 2007 | other comprehensive income ( loss ) | balance at december 31 2008
---------------------------------------------------------------------------------------- | --------------------------- | ----------------------------------- | ---------------------------
foreign currency translation                                                             | $ 368.8                     | $ -49.4 ( 49.4 )                    | $ 319.4
foreign currency hedges                                                                  | -45.4 ( 45.4 )              | 78.4                                | 33.0
unrealized gain/ ( loss ) on securities                                                  | -1.9 ( 1.9 )                | 0.6                                 | -1.3 ( 1.3 )
unrecognized prior service cost and unrecognized gain/ ( loss ) in actuarial assumptions | -31.2 ( 31.2 )              | -79.9 ( 79.9 )                      | -111.1 ( 111.1 )
accumulated other comprehensive income                                                   | $ 290.3                     | $ -50.3 ( 50.3 )                    | $ 240.0


2022 ability to identify suitable acquisition candidates ability to finance acquisitions  depends upon availability of adequate cash reserves from operations or acceptable financing terms variability of our stock price ; 2022 ability to integrate acquired business 2019 operations , services , clients  personnel ; 2022 effect of substantial leverage  may limit funds available to make acquisitions invest in business ; 2022 changes in  or failure to comply with government regulations  including privacy regulations ; 2022 other risks detailed elsewhere in this risk factors section in other filings with securities and exchange commission.
 not under obligation ( disclaim obligation ) to update or alter our forward- looking statements , result of new information future events or otherwise.
 consider possibility that actual results may differ materially from forward-looking statements.
 item 1b.
 unresolved staff comments.
 item 2.
 properties.
 corporate headquarters located in jacksonville , florida , in owned facility.
 fnf occupies and pays rent for approximately 86000 square feet in facility.
 we lease office space as follows : number of locations ( 1 ).
 ( 1 ) represents number of locations in each state listed.
 also lease approximately 72 locations outside united states.
 believe our properties are adequate for our business as presently conducted.
 item 3.
 legal proceedings.
 business company involved in various pending threatened litigation matters related to operations  some include claims for punitive or exemplary damages.
 company believes no actions  other than matters listed below depart from customary litigation incidental to business.
 background to disclosure note following : 2022 these matters raise difficult complicated factual and legal issues subject to many uncertainties and complexities.
2022 company reviews matters on-going basis follows provisions of statement financial accounting standards no.
 5 , accounting for contingencies ( 201csfas 5 201d ), making accrual and disclosure decisions.
 assessing reasonably possible probable outcomes , company bases decisions on assessment ultimate outcome following all appeals.

state                                    | number of locations ( 1 )
---------------------------------------- | -------------------------
california                               | 44
texas                                    | 21
florida                                  | 18
georgia new york                         | 10
new jersey                               | 8
illinois massachusetts                   | 7
alabama arizona minnesota north carolina | 6
other                                    | 64


part iii item 10.
 directors  executive officers corporate governance information required incorporated by reference to 201celection of directors 201d section  201cdirector selection process 201d section 201ccode of conduct 201d section 201cprincipal committees of board of directors 201d section 201caudit committee 201d section 201csection 16 ( a ) beneficial ownership reporting compliance 201d section proxy statement for annual meeting of stockholders may 21 , 2015 201cproxy statement 201d ) except for description of executive officers appears in part i of report on form 10-k under heading 201cexecutive officers of ipg. 201d new york stock exchange certification 2014  chief executive officer provided annual ceo certification to new york stock exchange required under section 303a. 12 ( a ) new york stock exchange listed company manual.
 item 11.
 executive compensation information incorporated reference 201cexecutive compensation 201d section 201cnon- management director compensation 201d section 201ccompensation discussion and analysis 201d section 201ccompensation leadership talent committee report 201d section proxy statement.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters information incorporated by reference to 201coutstanding shares ownership of common stock 201d section proxy statement except for information regarding shares of common stock to be issued or may be issued under equity compensation plans as of december 31 , 2014  provided in following table.
 equity compensation plan information plan category number of shares of common stock to be issued upon exercise of outstanding options , warrants rights ( a ) 123 weighted-average exercise price of outstanding stock options number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders.
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 15563666 9. 70 41661517 equity compensation plans not approved by security holders.
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 1 included total 5866475 performance-based share awards under 2009 and 2014 performance incentive plans representing target number of shares of common stock issued to employees following 2012-2014 performance period ( 201c2014 ltip awards 201d ) 2013-2015 period 201c2015 ltip awards 201d ) and 2014-2016 period ( 201c2016 ltip share awards 201d ).
 computation of weighted-average exercise price in column ( b ) table not take 2014 2015 or 2016 ltip share awards into account.
 2 included total of 98877 restricted share units and performance-based awards ( 201cshare unit awards 201d ) may be settled in shares of common stock or cash.
 computation of weighted-average exercise price in column ( b ) table does not take share unit awards into account.
 each share unit award settled in cash will increase number of shares of common stock available for issuance shown in column ( c ).
 3 ipg has issued restricted cash awards ( 201cperformance cash awards 201d ), half settled in shares of common stock and half settled in cash.
 using 2014 closing stock price of $ 20. 77 , awards settled in shares of common stock represent rights to additional 2721405 shares.
 these shares not included in table above.
4 included ( i ) 29045044 shares common stock for issuance under 2014 performance incentive plan , ( ii ) 12181214 shares common stock under employee stock purchase plan ( 2006 ) ( iii ) 435259 shares common stock under 2009 non-management directors 2019 stock incentive plan.
 part iii item 10.
 directors , executive officers corporate governance information required item incorporated by reference to 201celection of directors 201d section  201cdirector selection process 201d section 201ccode of conduct 201d section  201cprincipal committees board of directors 201d section  201caudit committee 201d section 201csection 16 ( a ) beneficial ownership reporting compliance 201d section of proxy statement for annual meeting of stockholders may 21 , 2015 ( 201cproxy statement 201d )  except for description of executive officers  appears in part i of report on form 10-k under heading 201cexecutive officers of ipg. 201d new york stock exchange certification in 2014  chief executive officer provided annual ceo certification to new york stock exchange  required under section 303a. 12 ( a ) new york stock exchange listed company manual.
 item 11.
 executive compensation information incorporated by reference to 201cexecutive compensation 201d section , 201cnon- management director compensation 201d section , 201ccompensation discussion and analysis 201d section 201ccompensation and leadership talent committee report 201d section proxy statement.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters information required item incorporated by reference to 201coutstanding shares and ownership of common stock 201d section of proxy statement , except for information regarding shares of common stock to be issued or may issued under equity compensation plans as of december 31 , 2014  provided in following table.
equity compensation plan information plan category number of shares common stock issued upon exercise outstanding options, warrants rights ( a ) 123 weighted-average exercise price of outstanding stock options number securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders.
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 15563666 9. 70 41661517 equity compensation plans not approved by security holders.
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 included total 5866475 performance-based share awards under 2009 and 2014 performance incentive plans target number of shares common stock issued to employees following 2012-2014 performance period 201c2014 ltip share awards 201d ) 2013-2015 performance period 201c2015 ltip awards 201d ) 2014-2016 performance period ( 201c2016 ltip share awards 201d ).
 computation of weighted-average exercise price in column ( b ) table does not take 2014 ltip awards 2015 2016 ltip share awards into account.
 included total of 98877 restricted share units performance-based awards ( 201cshare unit awards 201d ) may be settled in shares common stock or cash.
 computation of weighted-average exercise price in column ( b ) table does not take share unit awards into account.
 each share unit award settled in cash increase number of shares common stock available for issuance shown in column ( c ).
 3 ipg has issued restricted cash awards ( 201cperformance cash awards 201d ) half settled in shares common stock half settled in cash.
2014 closing stock price $ 20. 77 , awards settled in shares common stock represent rights to additional 2721405 shares.
 shares not included in table above.
 4 included ( i ) 29045044 shares common stock for issuance under 2014 performance incentive plan, ( ii ) 12181214 shares common stock for under employee stock purchase plan ( 2006 ) and ( iii ) 435259 shares common stock for issuance under 2009 non-management directors 2019 stock incentive plan.

plan category                                              | number of shares of common stock to be issued upon exercise of outstanding options warrants and rights ( a ) 123 | weighted-average exercise price of outstanding stock options ( b ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c ) 4
---------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders     | 15563666                                                                                | 9.70                                                               | 41661517
equity compensation plans not approved by security holders | none                                                                                |                                                                    |


management 2019s discussion analysis 138 jpmorgan chase & co. /2013 annual report credit derivatives used in credit portfolio management activities not qualify for hedge accounting under u. s.
 gaap ; these derivatives reported at fair value  gains and losses recognized in principal transactions revenue.
 contrast , loans and lending-related commitments risk-managed are accounted for on accrual basis.
 asymmetry in accounting treatment  between loans lending-related commitments and credit derivatives used in credit portfolio management activities , causes earnings volatility not representative  in firm 2019s view , of true changes in value of firm 2019s overall credit exposure.
 effectiveness of firm 2019s credit default swap ( 201ccds 201d ) protection as a hedge of firm 2019s exposures may vary depending on factors , including named reference entity (. firm may experience losses on specific exposures different than named reference entities in purchased cds ), contractual terms of cds ( may defined credit event not align with actual loss realized by firm ) maturity of firm 2019s cds protection ( in some cases may be shorter than firm 2019s exposures ).
 firm generally seeks to purchase credit protection with maturity date same or similar to maturity date of exposure for which protection purchased  remaining differences in maturity actively monitored and managed by firm.
 credit portfolio hedges following table sets out fair value related to firm 2019s credit derivatives used in credit portfolio management activities , fair value related to cva ( reflects credit quality of derivatives counterparty exposure ) certain other hedges used in risk management of cva.
 results can vary from period-to- period due to market conditions affect specific positions in portfolio.
gains losses on credit portfolio hedges year ended december 31  ( in millions ) 2013 2012 2011 hedges of loans lending- related commitments $ ( 142 ) $ ( 163 ) $ ( 32 ).
 community reinvestment act exposure ( ) encourages banks to meet credit needs of borrowers in all segments communities including low or moderate incomes.
 firm national leader in community development providing loans investments community development services in communities across united states.
 at december 31 , 2013 2012  firm 2019s cra loan portfolio was approximately $ 18 billion and $ 16 billion .
 december 31 2013 2012 50% ( 50 % ) and 62% ( 62 % ) of portfolio were residential mortgage loans ; 26% ( 26 % ) 13% ( 13 % ) were commercial real estate loans ; 16% ( 16 % ) and 18% ( 18 % ) were business banking loans 8% ( 8 % ) and 7% ( 7 % ) were other loans.
 cra nonaccrual loans were 3% ( 3 % ) and 4% ( 4 % )  of firm 2019s total nonaccrual loans.
 years ended december 31 , 2013 and 2012  net charge-offs in cra portfolio were 1% ( 1 % ) and 3% ( 3 % )  of firm 2019s net charge-offs both years.

year ended december 31 ( in millions )          | 2013           | 2012           | 2011
----------------------------------------------- | -------------- | -------------- | --------------
hedges of loans and lending-related commitments | $ -142 ( 142 ) | $ -163 ( 163 ) | $ -32 ( 32 )
cva and hedges of cva                           | -130 ( 130 )   | 127            | -769 ( 769 )
net gains/ ( losses )                           | $ -272 ( 272 ) | $ -36 ( 36 )   | $ -801 ( 801 )


issuer purchases of equity securities during three months ended december 31 , 2007  we repurchased 8895570 shares of our class a common stock for aggregate of $ 385. 1 million pursuant to $ 1. 5 billion stock repurchase program announced in february 2007  follows : period total number of shares purchased ( 1 ) average price paid per share total number of shares purchased part of publicly announced plans or programs approximate dollar value of shares yet be purchased under plans or programs ( in millions ).
 ( 1 ) issuer repurchases $ 1. 5 billion stock repurchase program announced february 2007.
 program management authorized through february 2008 to purchase shares through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements subject to market conditions other factors.
 facilitate repurchases typically made purchases pursuant to trading plans under rule 10b5-1 of exchange act  allow repurchase shares during periods prevented from under insider trading laws or self-imposed trading blackout periods.
 subsequent to december 31 , 2007  repurchased 4. 3 million shares of our class common stock for aggregate of $ 163. 7 million program.
 in february 2008  board of directors approved new stock repurchase program authorized to purchase up to additional $ 1. 5 billion of class a common stock.
purchases under stock repurchase program subject to available cash to fund repurchases , described in item 1a of annual report caption 201crisk factors 2014we anticipate may need additional financing to fund stock repurchase programs , refinance existing indebtedness fund future growth and expansion initiatives 201d and item 7 of annual report under caption 201cmanagement 2019s discussion analysis of financial condition results of operations 2014liquidity and capital resources. 201d

period               | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | approximate dollar value of shares that may yet be purchased under the plans or programs ( in millions )
-------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------
october 2007         | 3493426                                | $ 43.30                      | 3493426                                                                          | $ 449.9
november 2007        | 2891719                                | $ 44.16                      | 2891719                                                                          | $ 322.2
december 2007        | 2510425                                | $ 44.20                      | 2510425                                                                          | $ 216.2
total fourth quarter | 8895570                                | $ 43.27                      | 8895570                                                                          | $ 216.2


share-based compensation cost recorded net of estimated forfeitures straight-line basis for awards with service conditions only graded-vesting basis for awards with service  performance market conditions.
 company 2019s estimated forfeiture rate based on evaluation of historical actual trended forfeiture data.
 for fiscal 2014 , 2013 2012  company recorded share-based compensation cost of $ 172 million , $ 179 million $ 147 million respectively in personnel on consolidated statements of operations.
 amount capitalized share-based compensation cost immaterial during fiscal 2014  2013 2012.
 options options issued under eip expire 10 years from date of grant vest ratably over 3 years from date of grant subject to earlier vesting in full under certain conditions.
 during fiscal 2014  2013 2012 fair value of each stock option estimated on date of grant using black-scholes option pricing model with weighted-average assumptions:.
 in fiscal 2014  assumption based on company 2019s historical option exercises and set of peer companies management believes comparable to visa.
 company 2019s data weighted based on number of years between measurement date and visa 2019s initial public offering as percentage of options 2019 contractual term.
 relative weighting on visa 2019s data and peer data in fiscal 2014 was approximately 58% ( 58 % ) and 42% ( 42 % )  respectively.
 in fiscal 2013 and 2012  assumption fully based on peer companies 2019 data.
 based upon zero coupon.
 treasury bond rate over expected term of awards.
 based on company 2019s implied and historical volatility.
 in fiscal 2013 and 2012  historical volatility blend of visa 2019s historical volatility and of comparable peer companies.
 relative weighting between visa historical volatility and historical volatility of peer companies based on percentage of years visa stock price information available since initial public offering compared to expected term.
expected volatilities ranged 22% ( 22 % ) to 26% ( 26 % ) fiscal ( 4 ) based company 2019s annual dividend rate date grant.

| 2014             | 2013             | 2012
-------------------------------- | ---------------- | ---------------- | ----------------
expected term ( in years ) ( 1 ) | 4.80             | 6.08             | 6.02
risk-free rate of return ( 2 )   | 1.3% ( 1.3 % )   | 0.8% ( 0.8 % )   | 1.2% ( 1.2 % )
expected volatility ( 3 )        | 25.2% ( 25.2 % ) | 29.3% ( 29.3 % ) | 34.9% ( 34.9 % )
expected dividend yield ( 4 )    | 0.8% ( 0.8 % )   | 0.9% ( 0.9 % )   | 0.9% ( 0.9 % )
fair value per option granted    | $ 44.11          | $ 39.03          | $ 29.65


baker hughes  a ge company notes consolidated combined financial statements bhge 2017 form 10-k total intrinsic value of rsus ( value shares awarded at current market price ) vested and outstanding in 2017 was $ 17 million and $ 38 million respectively.
 total fair value of rsus vested in 2017 was $ 19 million.
 as of december 31 , 2017 $ 98 million total unrecognized compensation cost related to unvested rsus expected to be recognized over average period 2. 5 years.
 12.
 equity common stock authorized to issue 2 billion shares of class a common stock , 1. 25 billion shares of class b common stock 50 million shares of preferred stock each par value of $ 0. 0001 per share.
 on july 3 , 2017 each share of baker hughes common stock converted into one share of class a common stock.
 number class a common stock and class b common stock shares outstanding at december 31, 2017 is 422 million and 707 million .
 not issued preferred stock.
 ge owns all issued outstanding class b common stock.
 each share of class a and class b common stock associated membership interest in bhge llc form paired interest.
 each share of class b common stock has equal voting rights share class a common stock no economic rights holders class b common stock have no right to dividends assets in liquidation company.
 former baker hughes stockholders after transactions received special one-time cash dividend of $ 17. 50 per share paid company to holders of record of company's class a common stock.
 during 2017 company declared paid regular dividends of $ 0. 17 per share and $ 0. 18 per share to holders of record of company's class a common stock during quarters ended september 30 , 2017 and december 31 , 2017 .
table presents changes in number of shares outstanding ( in thousands ) : class a common class b common.
 share amounts are net of shares withheld to satisfy employee's tax withholding obligation.
 on november 2 , 2017 board of directors authorized bhge llc to repurchase up to $ 3 billion of common units from company and ge.
 proceeds of repurchase used by bhge to repurchase class a common stock company on open market if implemented in repurchase of approximately $ 1. 1 billion of class a common stock.
 class b common stock company paired with repurchased common units was repurchased by company at par value.
 $ 3 billion repurchase authorization is aggregate authorization for repurchases of class a and class b common stock with paired unit.
 bhge llc had authorization remaining to repurchase up to approximately $ 2. 5 billion of common units from bhge and ge at december 31 , 2017.
 during 2017  repurchased and canceled 6046735 shares of class a common stock for total $ 187 million.
 also repurchased and canceled 10126467 shares of class b common stock from ge paired with common units of bhge llc for $ 314 million.

| class a common stock | class b common stock
------------------------------------------------------------ | -------------------- | --------------------
balance at december 31 2016                                  | 2014                 | 2014
issue of shares on business combination at july 3 2017       | 427709               | 717111
issue of shares upon vesting of restricted stock units ( 1 ) | 290                  | 2014
issue of shares on exercises of stock options ( 1 )          | 256                  | 2014
stock repurchase program ( 2 ) ( 3 )                         | -6047 ( 6047 )       | -10126 ( 10126 )
balance at december 31 2017                                  | 422208               | 706985


table of contents worldwide distribution channels table presents number of doors by geographic location ralph lauren-branded products distributed by our wholesale segment sold to consumers in primary channels of distribution as of april 3 , 2010 : number of location doors ( a ).
 ( ) in asia-pacific  products primarily distributed through concessions-based sales arrangements.
 american living and chaps-branded products by our wholesale segment sold domestically through approximately 1700 doors as of april 3 , 2010.
 five key department-store customers generate significant sales volume.
 for fiscal 2010  these customers accounted for approximately 45% ( 45 % ) of all wholesale revenues macy 2019s , inc.
 representing approximately 18% ( 18 % ) of these revenues.
 our product brands sold primarily through their own sales forces.
 wholesale segment maintains primary showrooms in new york city.
 maintain regional showrooms in atlanta , chicago , dallas , milan , paris , london  munich  madrid stockholm.
 shop-within-shops.
 critical element of distribution to department stores partners utilize shop to enhance brand recognition permit complete merchandising lines differentiate presentation of products.
 shop-within-shops fixed assets include items customized freestanding fixtures , wall cases and components decorative items and flooring.
 as of april 3 , 2010 had approximately 14000 shop-within-shops dedicated to ralph lauren-branded wholesale products worldwide.
 excluding larger shop-within-shops in key department store locations size of shop-within-shops typically ranges from approximately 300 to 6000 square feet.
 share cost of these shop-within-shops with wholesale customers.
 basic stock replenishment program.
basic products knit shirts  chino pants oxford cloth shirts can be ordered through our basic stock replenishment programs.
 generally ship products within three-to-five days of order receipt.
 our retail segment as of april 3 , 2010  retail segment consisted of 179 full-price retail stores 171 factory stores worldwide totaling approximately 2. 6 million square feet  281 concessions-based shop-within-shops two e-commerce websites.
 extension of direct-to-consumer reach is a primary long-term strategic goal.
 full-price retail stores reinforce luxury image distinct sensibility of brands feature exclusive lines not sold in domestic department stores.
 opened 3 new full-price stores closed 3 full-price stores in fiscal 2010.
 assumed 16 full-price stores in with asia-pacific

location                 | number of doors ( a )
------------------------ | ---------------------
united states and canada | 4402
europe                   | 4421
japan                    | 117
total                    | 8940


notes to consolidated financial statements continued ).
 basis of presentation and accounting policies ) sop 03-1 effective for financial statements fiscal years after december 15 , 2003.
 at date of initial application  january 1 , 2004 cumulative effect of adoption of sop 03-1 on net income and other comprehensive income individual impacts shown net of income tax benefit of $ 12 : in may 2003 financial accounting standards board ( 201cfasb 201d ) issued statement of financial accounting standards ( 201csfas 201d ) no.
 150 , 201caccounting for certain financial instruments with characteristics of both liabilities and equity 201d.
 no.
 150 establishes standards for classifying measuring as liabilities certain financial instruments embody obligations of issuer and characteristics of both liabilities and equity.
.
 150 requires liability classification for two broad classes of financial instruments : ) instruments that represent indexed to obligation to buy back issuer 2019s shares regardless of settled net-cash or gross-physical basis and b ) obligations that can be settled in shares but derive value predominately from another underlying instrument or index (.
 security prices interest rates currency rates have fixed value or value inversely related to issuer 2019s shares.
 mandatorily redeemable equity and written options requiring issuer to buyback shares are examples of financial instruments should be reported as liabilities under new guidance.
 sfas no.
 150 specifies accounting only for certain freestanding financial instruments does not affect embedded derivative must be bifurcated accounted for separately.
.
 150 effective for instruments entered into or modified after may 31 , 2003 and for all other instruments beginning with first interim reporting period after june 15 , 2003.
adoption of statement not material impact on company 2019s consolidated financial condition or results of operations.
 in january 2003  fasb issued interpretation no.
 46 , 201cconsolidation of variable interest entities , interpretation of arb no.
 51 201d ( 201cfin 46 201d ) , required enterprise to assess consolidation of entity appropriate based upon interests in variable interest entity.
 a vie is entity in equity investors not have characteristics of controlling financial interest or not sufficient equity at risk for entity to finance activities without additional subordinated financial support from other parties.
 initial determination of whether entity is a vie made on date enterprise becomes involved with entity.
 enterprise shall consolidate a vie if it has variable interest absorb majority of vies expected losses if occur , receive majority of entity 2019s expected residual returns if occur or both.
 fin 46 effective immediately for new vies established or purchased subsequent to january 31 , 2003.
 for vies established or purchased subsequent to january 31 , 2003  adoption of fin 46 not material impact on company 2019s consolidated financial condition or results of operations as no material vies required consolidation.
 in december 2003  fasb issued revised version of fin 46 ( 201cfin 46r 201d ) , incorporated modifications and changes to original version.
 fin 46r replaced previously issued fin 46 and  subject to special provisions  effective no later end of first reporting period after december 15 , 2003 for entities considered special- purpose entities and no later end of first reporting period ends after march 15 , 2004 for all other vies.
 early adoption permitted.
 company adopted fin 46r in fourth quarter of 2003.
adoption of fin 46r result in consolidation material vies resulted in deconsolidation of vies issued mandatorily redeemable preferred securities of subsidiary trusts ( 201ctrust preferred securities 201d ).
 company not primary beneficiary of vies issued trust preferred securities.
 company own trust preferred securities issued to unrelated third parties.
 trust preferred securities considered principal variable interests issued by vies.
 vies company previously consolidated no longer consolidated.
 sole assets of vies are junior subordinated debentures issued by company with payment terms identical to trust preferred securities.
 trust preferred securities reported as separate liability on company 2019s consolidated balance sheets 201ccompany obligated mandatorily redeemable preferred securities of subsidiary trusts holding junior subordinated debentures 201d.
 at december 31 , 2003 and 2002 impact of deconsolidation long-term debt decrease trust preferred securities by $ 952 and $ 1. 5 billion  respectively.
 for see note 14 for disclosure of information related to vies required under fin 46r. future adoption of new accounting standards in december 2004 fasb issued sfas no.
 123 ( revised 2004 ) 201cshare-based payment 201d ( 201csfas no.
 123r 201d ) replaces sfas no.
 123 , 201caccounting for stock-based compensation 201d 201csfas no.
 123 201d ) supercedes apb opinion no.
 25 , 201caccounting for stock issued to employees 201d.
 sfas no.
 123r requires companies to recognize compensation costs for share-based payments to employees based on grant-date fair value of award for financial statements for reporting periods beginning after june 15 , 2005.
 pro forma disclosures previously permitted under sfas no.
 123 no longer alternative to financial statement recognition.
 transition methods include prospective retrospective adoption options.
 prospective method requires.

components of cumulative effect of adoption                        | net income   | other comprehensive income
------------------------------------------------------------------ | ------------ | --------------------------
establishing gmdb and other benefit reserves for annuity contracts | $ -54 ( 54 ) | $ 2014
reclassifying certain separate accounts to general account         | 30           | 294
other                                                              | 1            | -2 ( 2 )
total cumulative effect of adoption                                | $ -23 ( 23 ) | $ 292


on-balance sheet securitizations company engages in on-balance sheet securitizations.
 securitizations not qualify for sales treatment ; assets remain on company 2019s balance sheet.
 following table presents carrying amounts and classification of consolidated assets and liabilities transferred in transactions from consumer credit card  student loan  mortgage auto businesses  accounted for as secured borrowings : in billions of dollars december 31 , december 31.
 all assets restricted from sold or pledged as collateral.
 cash flows from these assets only source used to pay down associated liabilities non-recourse to company 2019s general assets.
 citi-administered asset-backed commercial paper conduits company active in asset-backed commercial paper conduit business as administrator of several multi-seller commercial paper conduits  service provider to single-seller and other commercial paper conduits sponsored by third parties.
 multi-seller commercial paper conduits designed to provide company 2019s customers access to low-cost funding in commercial paper markets.
 conduits purchase assets from or provide financing facilities to customers funded by issuing commercial paper to third-party investors.
 conduits do not purchase assets originated by company.
 funding conduit facilitated by liquidity support and credit enhancements provided by company and by third parties.
 as administrator to conduits company responsible for selecting and structuring of assets purchased or financed by conduits making decisions regarding funding conduits determining tenor and other features of commercial paper issued monitoring quality and performance of conduits 2019 assets facilitating operations and cash flows of conduits.
 in return company earns structuring fees from clients for transactions and earns administration fee from conduit  equal to income from client program and liquidity fees of conduit after payment of interest costs and other fees.
administration fee stable , most risks and rewards of underlying assets passed back to customers once asset pricing negotiated , most ongoing income , costs fees stable as percentage of conduit 2019s size.
 conduits administered by company do not invest in liquid securities formally rated by third parties.
 assets are privately negotiated and structured transactions designed to be held by conduit , rather than actively traded and sold.
 yield earned by conduit on each asset tied to rate on commercial paper issued by conduit , passing interest rate risk to client.
 each asset purchased by conduit structured with transaction-specific credit enhancement features provided by third-party seller , including over- collateralization , cash and excess spread collateral accounts  direct recourse third-party guarantees.
 credit enhancements sized with objective of approximating credit rating of a or above , based on company 2019s internal risk ratings.
 substantially all of funding of conduits is in form of short- term commercial paper.
 as of december 31 , 2008  weighted average life of commercial paper issued was approximately 37 days.
 in conduits have issued subordinate loss notes and equity with notional amount of approximately $ 80 million varying remaining tenors ranging from six months to seven years.
 primary credit enhancement provided to conduit investors is in form of transaction-specific credit enhancement described above.
 in two additional forms of credit enhancement protect commercial paper investors from defaulting assets.
 first subordinate loss notes issued by each conduit absorb credit losses up to full notional amount.
 expected subordinate loss notes issued by each conduit sufficient to absorb majority of expected losses from each conduit , making single investor in subordinate loss note primary beneficiary under fin 46 ( r ).
each conduit obtained a letter of credit from company , generally 8-10% ( 8-10 % ) of conduit 2019s assets.
 letters of credit provided by company total approximately $ 5. 8 billion included in company 2019s maximum exposure to loss.
 net result across all multi-seller conduits administered by company is in event of defaulted assets in excess of transaction-specific credit enhancement described losses in each conduit allocated in following order : 2022 subordinate loss note holders 2022 company 2022 commercial paper investors company , with third parties also provides conduits with two forms of liquidity agreements used to provide funding to conduits in event of market disruption .
 each asset of conduit is supported by a transaction-specific liquidity facility in form of asset purchase agreement ( apa ).
 under apa  company agreed to purchase non-defaulted eligible receivables from conduit at par.
 any assets purchased under apa are subject to increased pricing.
 apa not designed to provide credit support to conduit  generally does not permit purchase of defaulted or impaired assets and reprices assets purchased to consider potential increased credit risk.
 apa covers all assets in conduits and considered in company 2019s maximum exposure to loss.
 in company provides conduits with program-wide liquidity in form of short-term lending commitments.
 under commitments company agreed to lend to conduits in event of short-term disruption in commercial paper market , subject to specified conditions.
 total notional exposure under program-wide liquidity agreement is $ 11. 3 billion considered in company 2019s maximum exposure to loss.
 company receives fees for providing both types of liquidity agreement considers these fees to be on fair market terms.

in billions of dollars        | december 31 2008 | december 31 2007
----------------------------- | ---------------- | ----------------
cash                          | $ 0.3            | $ 0.1
available-for-sale securities | 0.1              | 0.2
loans                         | 7.5              | 7.4
allowance for loan losses     | -0.1 ( 0.1 )     | -0.1 ( 0.1 )
total assets                  | $ 7.8            | $ 7.6
long-term debt                | $ 6.3            | $ 5.8
other liabilities             | 0.3              | 0.4
total liabilities             | $ 6.6            | $ 6.2


flows of company 2019s subsidiaries  receipt of dividends repayments of indebtedness from subsidiaries compliance with delaware corporate other laws compliance with contractual provisions of debt other agreements other factors.
 company 2019s dividend rate on common stock determined by board of directors quarterly current possible future developments may affect company 2019s income and cash flows.
 dividends on common stock declared typically paid in march  june september december.
 historically dividends paid quarterly to holders of record less than 30 days prior to distribution date.
 dividends on company 2019s common stock not cumulative only declared dividends are paid.
 during 2018 , 2017 2016  company paid $ 319 million , $ 289 million and $ 261 million in cash dividends respectively.
 following table provides per share cash dividends paid for years ended december 31:.
 on december 7 , 2018  company 2019s board of directors declared quarterly cash dividend payment of $ 0. 455 per share payable on march 1 , 2019  to shareholders of record as of february 7 , 2019.
 equity forward transaction see note 4 2014acquisitions and divestitures for information regarding forward sale agreements entered by company on april 11 , 2018  subsequent settlement of agreements on june 7 , 2018.
 regulatory restrictions issuance of long-term debt or equity securities by company or american water capital corp.
 ( 201cawcc 201d ) company 2019s wholly owned financing subsidiary does not require authorization of state puc if no guarantee or pledge of regulated subsidiaries utilized.
 state puc authorization required to issue long-term debt at most of company 2019s regulated subsidiaries.
company 2019s regulated subsidiaries obtain required approvals periodic basis to cover anticipated financing needs for period time or in connection with specific financing.
 under applicable law company 2019s subsidiaries can pay dividends only from retained , undistributed or current earnings.
 significant loss at subsidiary may limit dividends subsidiary can distribute to american water.
 ability of company 2019s subsidiaries to pay upstream dividends or repay indebtedness to american water is subject to compliance with regulatory restrictions and financial obligations , including  for debt service and preferred and preference stock dividends , applicable corporate , tax other laws and regulations , other agreements or covenants made entered by company and subsidiaries.
 note 10 : stock based compensation company has granted stock options , stock units and dividend equivalents to non-employee directors , officers key employees company pursuant to terms of its 2007 omnibus equity compensation plan ( 201c2007 plan 201d ).
 stock units under 2007 plan generally vest based on continued employment with company ( 201crsus 201d ) or ii continued employment with company where distribution of shares subject to satisfaction or of stated performance-based goals ( 201cpsus 201d ).
 total aggregate number of shares of common stock may be issued under 2007 plan is 15. 5 million.
 as of

| 2018    | 2017    | 2016
--------- | ------- | ------- | -------
december  | $ 0.455 | $ 0.415 | $ 0.375
september | $ 0.455 | $ 0.415 | $ 0.375
june      | $ 0.455 | $ 0.415 | $ 0.375
march     | $ 0.415 | $ 0.375 | $ 0.34