fiscal 2004 acquisitions february 2004  company completed acquisition of outstanding shares of accelerant networks , inc.
 ( accelerant for total consideration of $ 23. 8 million  acquisition of technology assets of analog design automation , inc.
 ( ada ) for total consideration $ 12. 2 million.
 company acquired accelerant enhance company 2019s standards-based ip solutions.
 acquired assets of ada enhance company 2019s analog and mixed signal offerings.
 october 2004 company completed acquisition of cascade semiconductor solutions , inc.
 ( cascade for total upfront consideration of $ 15. 8 million contingent consideration of up to $ 10. 0 million paid upon achievement of performance milestones over three years following acquisition.
 contingent consideration totaling $ 2. 1 million paid fourth quarter of fiscal 2005 allocated to goodwill.
 company acquired cascade , ip provider , to augment synopsys 2019 offerings of pci express products.
 included total consideration for accelerant and cascade acquisitions are aggregate acquisition costs of $ 4. 3 million  primarily of legal and accounting fees other directly related charges.
 as of october 31 , 2006 company paid substantially all costs related to these acquisitions.
 fiscal 2004  company completed one additional acquisition two additional asset acquisition transactions for aggregate consideration $ 12. 3 million in upfront payments and acquisition-related costs.
 process research and development expenses associated acquisitions totaled $ 1. 6 million for fiscal 2004.
 acquisitions not considered material or to company 2019s consolidated balance sheet results of operations.
 as of october 31 , 2006 company paid substantially all costs related to these acquisitions.
company allocated aggregate purchase consideration for transactions to assets and liabilities acquired including identifiable intangible assets based on fair values at acquisition dates resulting in aggregate goodwill of $ 24. 5 million.
 aggregate identifiable intangible assets acquisitions primarily of purchased technology and other intangibles are $ 44. 8 million  amortized over three to five years.
 company includes amortization of purchased technology in cost of revenue in statements of operations.
 4.
 goodwill and intangible assets goodwill consists of following:.
 during fiscal year 2005 additions represent goodwill acquired in acquisitions of ise and nassda of $ 72. 9 million and $ 92. 4 million  respectively contingent consideration earned and paid of $ 1. 7 million and $ 2. 1 million related to immaterial acquisition and acquisition of cascade .
 during fiscal year 2005 reduced goodwill primarily related to tax reserves for avant! no longer probable due to expiration of federal statute of limitations for claims.

| ( in thousands )
-------------------------- | ----------------
balance at october 31 2004 | $ 593706
additions ( 1 )            | 169142
other adjustments ( 2 )    | -33869 ( 33869 )
balance at october 31 2005 | $ 728979
additions ( 3 )            | 27745
other adjustments ( 4 )    | -21081 ( 21081 )
balance at october 31 2006 | $ 735643


management 2019s discussion analysis of financial condition results operations state street corporation | 90 table 30 : total deposits average balance december 31 years ended december 31.
 short-term funding on-balance sheet liquid assets integral component of liquidity management strategy.
 assets provide liquidity through maturities assets provide ability to raise funds by pledging securities as collateral for borrowings or through outright sales.
 access to global capital markets ability source incremental funding at reasonable rates interest from wholesale investors.
 discussed under 201casset liquidity , 201d state street bank's membership in fhlb allows for advances of liquidity with varying terms against high-quality collateral.
 short-term secured funding comes in form of securities lent or sold under agreements to repurchase.
 these transactions short-term generally overnight collateralized by high-quality investment securities.
 balances were $ 2. 84 billion and $ 4. 40 billion as of december 31 , 2017 and december 31 , 2016  respectively.
 state street bank maintains line of credit with financial institution of cad 1. 40 billion , or approximately $ 1. 11 billion as of december 31 , 2017  to support canadian securities processing operations.
 line of credit no stated termination date cancelable by either party with prior notice.
 as of december 31 , 2017  no balance outstanding on line of credit.
 long-term funding ability to issue debt equity securities under current universal shelf registration to meet current commitments business needs including accommodating transaction cash management needs of clients.
 state street bank , wholly owned subsidiary of parent company has authorization to issue up to $ 5 billion in unsecured senior debt additional $ 500 million of subordinated debt.
agency credit ratings ability to maintain consistent access to liquidity is fostered by maintenance of high investment-grade ratings measured by major independent credit rating agencies.
 factors essential to maintaining high credit ratings include : 2022 diverse stable core earnings ; 2022 relative market position strong risk management strong capital ratios diverse liquidity sources  including global capital markets client deposits ; strong liquidity monitoring procedures ; preparedness for current future regulatory developments.
 high ratings limit borrowing costs enhance liquidity by : providing assurance for unsecured funding and depositors increasing potential market for debt improving ability to offer products serving markets ; engaging in transactions in which clients value high credit ratings.
 downgrade or reduction of credit ratings could adverse effect on liquidity by restricting ability to access capital markets , could increase related cost of funds.
 could cause sudden large-scale withdrawal of unsecured deposits by clients could lead to draw-downs of unfunded commitments to extend credit or trigger requirements under securities purchase commitments require additional collateral or force terminations of certain trading derivative contracts.
 majority of our derivative contracts entered into under bilateral agreements with counterparties who may require us to post collateral or terminate transactions based on changes in credit ratings.
 we assess impact of these arrangements by determining collateral required assuming downgrade by all rating agencies.
 additional collateral or termination payments related to net derivative liabilities under these arrangements could called by counterparties in of downgrade in credit ratings below levels specified in agreements is disclosed in note 10 to consolidated financial statements included under item 8  financial statements supplementary data  of form 10-k.
 other funding sources  such as secured financing transactions and other margin requirements , for no explicit triggers  could also be adversely affected.

( in millions ) | december 31 2017 | december 31 2016 | december 31 2017 | 2016
--------------- | ---------------- | ---------------- | ---------------- | --------
client deposits | $ 180149         | $ 176693         | $ 158996         | $ 156029
wholesale cds   | 4747             | 10470            | 4812             | 14456
total deposits  | $ 184896         | $ 187163         | $ 163808         | $ 170485


cash commitment to fund capital needs business until cumulative funding equal to funding provided from inception through effective date of transaction.
 transaction created new joint venture business as comercia global payments brazil.
 result of transaction deconsolidated global payments brazil  apply equity method of accounting to retained interest in comercia global payments brazil.
 recorded gain on transaction of $ 2. 1 million included in interest and other income in consolidated statement of income for fiscal year ended may 31 , 2014.
 results of brazil operation from inception until restructuring into joint venture on september 30 , 2013 not material to consolidated results of operations assets and liabilities derecognized not material to consolidated balance sheet.
 american express portfolio on october 24 , 2013  acquired merchant portfolio in czech republic from american express limited for $ 1. 9 million.
 acquired assets classified as customer-related intangible assets and contract-based intangible assets with estimated amortization periods of 10 years.
 paypros on march 4 , 2014 completed acquisition of 100% ( 100 % ) of outstanding stock of payment processing , inc.
 ( 201cpaypros 201d ) for $ 420. 0 million in cash plus $ 7. 7 million in cash for working capital subject to adjustment based on final determination of working capital.
 funded acquisition with combination of cash on hand and proceeds from new term loan.
 paypros , based in california provider of fully-integrated payment solutions for small-to-medium sized merchants in united states.
 paypros delivers products and services through network of technology-based enterprise software partners to vertical markets complementary to markets served by accelerated payment technologies ( 201capt 201d ) acquired in october 2012.
 acquired paypros to expand direct distribution capabilities in united states to enhance existing integrated solutions offerings.
acquisition recorded as business combination purchase price allocated to assets acquired and liabilities assumed based on estimated fair values.
 due to timing of transaction allocation of purchase price is preliminary pending final valuation of intangible assets and deferred income taxes resolution of working capital settlement discussed.
 purchase price of paypros determined by analyzing historical and prospective financial statements.
 acquisition costs associated with purchase not material.
 table summarizes preliminary purchase price allocation ( in thousands ) :.
 preliminary purchase price allocation resulted in goodwill  included in north america merchant services segment, of $ 271. 6 million.
 goodwill attributable primarily to synergies with services offered and markets served by paypros.
 goodwill associated with acquisition not deductible for tax purposes.
 customer-related intangible assets and contract-based intangible assets have estimated amortization period of 13 years.
 acquired technology has estimated amortization period of 7 years.

goodwill                           | $ 271577
---------------------------------- | ----------------
customer-related intangible assets | 147500
contract-based intangible assets   | 31000
acquired technology                | 10700
fixed assets                       | 1680
other assets                       | 4230
total assets acquired              | 466687
deferred income taxes              | -38949 ( 38949 )
net assets acquired                | $ 427738


shareholder return performance line graph compares annual percentage change ball corporation fffds cumulative total shareholder return common stock with cumulative return dow jones containers & packaging index s&p composite 500 stock index for five-year period ended december 31 , 2011.
 assumes $ 100 invested december 31, 2006 all dividends reinvested.
 dow jones containers & packaging index total return weighted by market capitalization.
 total return to stockholders assumes $ 100 investment 12/31/06 ) total return analysis.
 copyright a9 2012 standard & poor fffds division of mcgraw-hill companies inc.
 all rights reserved.
 www. researchdatagroup. com/s&p. htm copyright a9 2012 dow jones & company.
 all rights.

| 12/31/2006 | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011
---------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
ball corporation             | $ 100.00   | $ 104.05   | $ 97.04    | $ 121.73   | $ 161.39   | $ 170.70
dj us containers & packaging | $ 100.00   | $ 106.73   | $ 66.91    | $ 93.98    | $ 110.23   | $ 110.39
s&p 500                      | $ 100.00   | $ 105.49   | $ 66.46    | $ 84.05    | $ 96.71    | $ 98.75


part ii item 5.
 market for registrant 2019s common equity , related stockholder matters issuer purchases of equity securities table presents reported quarterly high and low per share sale prices of our class a common stock on new york stock exchange ( nyse ) for years 2006 and 2005.
 on february 22 , 2007  closing price of our class a common stock was $ 40. 38 per share reported on nyse.
 as of february 22 , 2007  had 419988395 outstanding shares of class a common stock 623 registered holders.
 in february 2004  all outstanding shares of class b common stock converted into shares class a common stock on one-for-one basis pursuant to 201cdodge conversion event 201d defined in charter.
 in february 2004  all outstanding shares of class c common stock converted into shares of class a common stock one-for-one basis.
 in august 2005  amended and restated charter to eliminate class b common stock and class c common stock.
 dividends never paid a dividend on any class of our common stock.
 anticipate may retain future earnings to fund development and growth of business.
 indentures governing our 7. 50% ( 7. 50 % ) senior notes due 2012 ( 7. 50 % ) and 7. 125% ( 7. 125 % ) senior notes due 2012. may prohibit us from paying dividends to stockholders unless satisfy certain financial covenants.
 credit facilities and indentures governing terms of debt securities contain covenants may restrict ability subsidiaries from making any direct or indirect distribution , dividend or other payment on account of limited liability company interests , partnership interests  capital stock or other equity interests.
under our credit facilities , borrower subsidiaries may pay cash dividends or make other distributions with credit facility only if no default exists or created.
 indenture governing terms of ati 7. 25% ( 7. 25 % ) notes prohibit ati and our other subsidiaries guaranteed notes ( sister guarantors ) from paying dividends making other payments or distributions unless financial covenants satisfied.
 indentures governing terms of our 7. 50% ( 7. 50 % ) notes and 7. 125% ( 7. 125 % ) notes contain restrictive covenants  prohibit restricted subsidiaries from paying dividends making other payments or distributions unless financial covenants satisfied.
 for more information about restrictions under our credit facilities and notes indentures, see item 7 of this annual report under caption 201cmanagement 2019s discussion and analysis of financial condition and results of operations 2014liquidity and capital resources 2014factors affecting sources of liquidity 201d and note 7 to our consolidated financial statements in annual report.

2006                       | high    | low
-------------------------- | ------- | -------
quarter ended march 31     | $ 32.68 | $ 26.66
quarter ended june 30      | 35.75   | 27.35
quarter ended september 30 | 36.92   | 29.98
quarter ended december 31  | 38.74   | 35.21
2005                       | high    | low
quarter ended march 31     | $ 19.28 | $ 17.30
quarter ended june 30      | 21.16   | 16.28
quarter ended september 30 | 25.20   | 20.70
quarter ended december 31  | 28.33   | 22.73


financial assurance we must provide financial assurance to governmental agencies other entities under environmental regulations relating to our landfill operations for capping  closure post-closure costs related to our performance under certain collection , landfill transfer station contracts.
 we satisfy these financial assurance requirements by providing surety bonds letters of credit insurance policies ( financial assurance instruments ) trust deposits  included in restricted cash marketable securities other assets in our consolidated balance sheets.
 amount of financial assurance requirements for capping  closure post-closure costs is determined by state environmental regulations.
 financial assurance requirements for capping  closure post-closure costs may be associated with portion of landfill or entire landfill.
 states require a third-party engineering specialist to determine estimated capping  closure post-closure costs to determine required amount of financial assurance for landfill.
 amount of financial assurance required can differ from obligation determined and recorded under u.
.
 amount of financial assurance requirements related to contract performance varies by contract.
 we must provide financial assurance for our insurance program and collateral for certain performance obligations.
 not expect a material increase in financial assurance requirements during 2018  mix of financial assurance instruments may change.
 these financial assurance instruments are issued in normal course of business not considered indebtedness.
 currently no liability for financial assurance instruments  not reflected in our consolidated balance sheets ; we record capping , closure post-closure liabilities insurance liabilities as they incurred.
 off-balance sheet arrangements no off-balance sheet debt or similar obligations other than operating leases and financial assurances not classified as debt.
 no transactions or obligations with related parties not disclosed , consolidated into or reflected in our reported financial position or results of operations.
not guaranteed third-party debt.
 free cash flow define free cash flow  not measure determined with u. s.
 gaap  as cash provided by operating activities less purchases of property and equipment plus proceeds from sales property equipment presented in consolidated statements of cash flows.
 following table calculates free cash flow for years ended december 31 , 2017 , 2016 2015 ( in millions of dollars ) :.
 for discussion of changes in components of free cash flow  see discussion regarding cash flows by operating activities and cash flows in investing activities elsewhere in management 2019s discussion and analysis of financial condition results of operations.

| 2017             | 2016             | 2015
--------------------------------------------- | ---------------- | ---------------- | ----------------
cash provided by operating activities         | $ 1910.7         | $ 1847.8         | $ 1679.7
purchases of property and equipment           | -989.8 ( 989.8 ) | -927.8 ( 927.8 ) | -945.6 ( 945.6 )
proceeds from sales of property and equipment | 6.1              | 9.8              | 21.2
free cash flow                                | $ 927.0          | $ 929.8          | $ 755.3


american tower corporation subsidiaries notes to consolidated financial statements 2014 continued ) operations  net  accompanying consolidated statements operations for year ended december 31 , 2003.
 see note 9. ) other transactions 2014in august 2003  company consummated sale of galaxy engineering ( galaxy )  radio frequency engineering  network design tower-related consulting business previously included in company 2019s network development services segment ).
 purchase price of approximately $ 3. 5 million included $ 2. 0 million in cash  company received at closing additional $ 1. 5 million payable on january 15, 2008  or earlier date based future revenues galaxy.
 company received $ 0. 5 million amount in january 2005.
 transaction company recorded net loss on disposal of approximately $ 2. 4 million in consolidated statement of operations for year ended december 31 , 2003.
 may 2003  company consummated sale of office building in westwood , massachusetts ( previously held primarily rental property included company 2019s rental management segment ) for purchase price of approximately $ 18. 5 million  including $ 2. 4 million cash proceeds buyer 2019s assumption of $ 16. 1 million related mortgage notes.
 transaction company recorded net loss on disposal of approximately $ 3. 6 million in consolidated statement of operations for year ended december 31 , 2003.
 january 2003  company consummated sale of flash technologies , remaining components business ( previously included in company 2019s network development services segment ) for approximately $ 35. 5 million in cash recorded net gain on disposal of approximately $ 0. 1 million in consolidated statement of operations for year ended december 31 , 2003.
march 2003  company consummated sale office building in schaumburg , illinois ( previously held primarily as rental property included in company 2019s rental and management segment ) for net proceeds approximately $ 10. 3 million cash recorded net loss on disposal $ 0. 1 million consolidated statement operations for year ended december 31 , 2003.
 4.
 property and equipment property ( including assets held under capital leases ) consist following as of december 31 , ( thousands ) :.
 5.
 goodwill other intangible assets company 2019s net carrying amount goodwill approximately $ 2. 1 billion as of december 312005 $ 592. 7 million as of december 31 , 2004 related to rental and management segment.
 increase in carrying value result of goodwill of $ 1. 5 billion acquired in merger with spectrasite , inc.
 ( see note 2. )

| 2005                 | 2004
---------------------------------------------- | -------------------- | ------------------
towers                                         | $ 4134155            | $ 2788162
equipment                                      | 167504               | 115244
buildings and improvements                     | 184951               | 162120
land and improvements                          | 215974               | 176937
construction-in-progress                       | 36991                | 27866
total                                          | 4739575              | 3270329
less accumulated depreciation and amortization | -1279049 ( 1279049 ) | -996973 ( 996973 )
property and equipment net                     | $ 3460526            | $ 2273356


1 ) adjusted other income ( expense ) excludes pension settlement charges of $ 37 million , $ 128 million $ 220 million , for years ended 2018  2017 2016 .
 2 ) adjusted items generally taxed at estimated annual effective tax rate except for applicable tax impact associated with estimated restructuring plan expenses legacy litigation  accelerated tradename amortization  impairment charges non-cash pension settlement charges adjusted at related jurisdictional rates.
 tax expense excludes tax impacts from sale of certain assets liabilities previously classified as held for sale tax adjustments recorded to finalize 2017 accounting for enactment date impact of tax reform act.
 3 adjusted net income from discontinued operations excludes gain on sale of discontinued operations of $ 82 million , $ 779 million  $ 0 million for years ended 2018  2017  2016 .
 adjusted net income from discontinued operations excludes intangible asset amortization of $ 0 million , $ 11rr million  $ 120 million for twelve months ended december 31 , 2018  2017  2016 .
 effective tax rate further adjusted for applicable tax impact associated with gain on sale and intangible asset amortization  as applicable.
 free cash flow use free cash flow  defined as cash flow provided by operations minus capital expenditures as non-gaap measure of core operating performance cash generating capabilities of business operations.
 supplemental information related to free cash flow represents measure not in accordance with.
 gaap should be viewed in addition to not instead of financial statements.
 use non-gaap measure does not imply or represent residual cash flow for discretionary expenditures.
 reconciliation of non-gaap measure to cash flow provided by operations is as follows ( in millions ) :.
impact foreign currency exchange rate fluctuations we conduct business in 120 countries sovereignties foreign currency exchange rate fluctuations significant impact on our business.
 foreign currency exchange rate movements may distort period-to-period comparisons of changes revenue or pretax income.
 give financial statement users information provided illustration of impact of foreign currency exchange rate fluctuations on financial results.
 methodology impact isolates impact of change in currencies between periods by translating prior year 2019s revenue  expenses net income using current year 2019s foreign currency exchange rates.
 translating prior year results at current year foreign currency exchange rates currency fluctuations had $ 0. 08 favorable impact on net income per diluted share during year ended december 31 , 2018.
 currency fluctuations had $ 0. 12 favorable impact on net income per diluted share during year ended december 31 , 2017  2016 results translated at 2017 rates.
 currency fluctuations no impact on net income per diluted share during year ended december 31 , 2016 2015 results translated at 2016 rates.
 prior year results current year foreign currency exchange rates currency fluctuations had $ 0. 09 favorable impact on adjusted net income per diluted share during year ended december 31 , 2018.
 currency fluctuations had $ 0. 08 favorable impact on adjusted net income per diluted share during year ended december 31 , 2017 when 2016 results translated at 2017 rates.
 currency fluctuations had $ 0. 04 unfavorable impact on adjusted net income per diluted share during year ended december 31 , 2016 when 2015 results translated at 2016 rates.
 translations for comparative purposes only do not impact accounting policies or practices for amounts included in financial statements.
 competition markets authority.2019s competition regulator , competition and markets authority ( 201ccma 201d ) , conducted a market investigation into supply and acquisition of investment consulting and fiduciary management services , including those offered by aon and competitors in u. k. , to assess whether any feature or combination of features in target market prevents , restricts , or distorts competition.
 cma issued final report on december 12 , 2018.
 cma will draft series of orders set out detailed remedies , expected in first quarter of 2019 , subject to further public consultation.
 do not anticipate remedies to significant impact on company 2019s consolidated financial position or business.
 financial conduct authority fca is conducting a market study to assess competition working in wholesale insurance broker sector in u. k.
 in which aon , through subsidiaries , participates.
 fca indicated purpose of market study is to assess extent market working well in interests of customers to identify features market may impact competition.
 depending on study 2019s findings , fca may require remedies to correct features found

years ended december 31                             | 2018         | 2017         | 2016
--------------------------------------------------- | ------------ | ------------ | ------------
cash provided by continuing operating activities    | $ 1686       | $ 669        | $ 1829
capital expenditures used for continuing operations | -240 ( 240 ) | -183 ( 183 ) | -156 ( 156 )
free cash flow provided by continuing operations    | $ 1446       | $ 486        | $ 1673


24 2017 annual report performance graph chart presents comparison for five-year period ended june 30 , 2017 of market performance of company 2019s common stock with s&p 500 index and index of peer companies selected by company : comparison of 5 year cumulative total return among jack henry & associates , inc. s&p 500 index  peer group information depicts line graph with values:.
 comparison assumes $ 100 invested on june 30 , 2012 assumes reinvestments of dividends.
 total returns calculated according to market capitalization of peer group members beginning of each period.
 peer companies selected providing specialized computer software  hardware related services to financial institutions other businesses.
 companies in peer group are aci worldwide , inc. bottomline technology , inc. broadridge financial solutions ; cardtronics , inc. convergys corp. corelogic , inc. dst systems , inc. euronet worldwide , inc. fair isaac corp. fidelity national information services , inc. fiserv , inc. global payments , inc. moneygram international , inc. ss&c technologies holdings , inc. total systems services , inc. tyler technologies , inc. verifone systems , inc. wex , inc.

| 2012   | 2013   | 2014   | 2015   | 2016   | 2017
---------- | ------ | ------ | ------ | ------ | ------ | ------
jkhy       | 100.00 | 138.34 | 177.10 | 195.72 | 267.64 | 322.60
peer group | 100.00 | 117.87 | 161.90 | 203.87 | 233.39 | 271.10
s&p 500    | 100.00 | 120.60 | 150.27 | 161.43 | 167.87 | 197.92


part ii item 5.
 market for registrant 2019s common equity related stockholder matters issuer purchases of equity securities common stock listed on new york stock exchange under symbol "apd. " as of 31 october 2019 5166 record holders of common stock.
 cash dividends on company 2019s common stock paid quarterly.
 expectation continue to pay cash dividends future at comparable or increased levels.
 board of directors determines to declare dividends timing amount based on financial condition other factors relevant.
 dividend information for each quarter of fiscal years 2019 and 2018 summarized below.
 purchases of equity securities by issuer on 15 september 2011 board of directors authorized repurchase of up to $ 1. 0 billion of outstanding common stock.
 program stated expiration date.
 repurchase shares pursuant to rules 10b5-1 and 10b-18 under securities exchange act of 1934 amended through repurchase agreements with one or more brokers.
 no purchases of stock during fiscal year 2019.
 at 30 september 2019  $ 485. 3 million in share repurchase authorization remained.
 additional purchases completed at company 2019s discretion while maintaining sufficient funds for investing in businesses growth opportunities.

| 2019   | 2018
-------------- | ------ | ------
first quarter  | $ 1.10 | $ .95
second quarter | 1.16   | 1.10
third quarter  | 1.16   | 1.10
fourth quarter | 1.16   | 1.10
total          | $ 4.58 | $ 4.25


iquidity capital resources historically generated positive cash flow from operations used funds from operations short-term borrowings on revolving credit facility to meet capital requirements.
 expect trend to continue future.
 company's cash cash equivalents decreased to $ 65565 at june 30 , 2008 from $ 88617 june 30 2007.
 table summarizes net cash from operating activities statement cash flows : year ended june 30 cash by operations increased $ 6754 to $ 181001 for fiscal year ended june 30 2008 compared to $ 174247 fiscal 2007.
 increase primarily attributable to increase in expenses corresponding cash outflow depreciation amortization percentage of total net income.
 cash used in investing activities for fiscal year ended june 2008 was $ 102148 includes payments for acquisitions of $ 48109  plus $ 1215 in contingent consideration paid on prior years 2019 acquisitions.
 fiscal 2007  payments for acquisitions totaled $ 34006  plus $ 5301 paid on earn-outs other acquisition adjustments.
 capital expenditures for fiscal 2008 were $ 31105 compared to $ 34202 for fiscal 2007.
 cash used for software development fiscal 2008 was $ 23736 compared to $ 20743 prior year.
 net cash used in financing activities for current fiscal year was $ 101905 includes repurchase of 4200 shares of common stock for $ 100996  payment of dividends of $ 24683 $ 429 net repayment on revolving credit facilities.
 cash financing activities partially offset by proceeds of $ 20394 from exercise stock options sale of common stock $ 3809 excess tax benefits from stock option exercises.
 fiscal 2007 net cash used financing activities included repurchase of common stock for $ 98413 payment of dividends of $ 21685.
in current year , cash used in fiscal 2007 partially offset by proceeds from exercise of stock options and sale of common stock of $ 29212 , $ 4640 excess tax benefits from stock option exercises $ 19388 net borrowings on revolving credit facilities.
 at june 30 , 2008 , company had negative working capital of $ 11418 ; largest component of current liabilities was deferred revenue of $ 212375.
 cash outlay necessary to provide services related to these deferred revenues significantly less than recorded balance.
 do not anticipate liquidity problems result from this condition.
 u. s.
 financial markets largest u. s.
 financial institutions recently shaken by negative developments in home mortgage industry mortgage markets , particularly markets for subprime mortgage-backed securities.
 believe too early to predict effect , if  these developments may have , not experienced significant issues with current collec- tion efforts , believe future impact to liquidity be minimized by access to available lines of credit.
 2008 2007 2006.

2007                                   | year ended june 30 2008 2007 | year ended june 30 2008 2007 | year ended june 30 2008
-------------------------------------- | ---------------------------- | ---------------------------- | -----------------------
net income                             | $ 104222                     | $ 104681                     | $ 89923
non-cash expenses                      | 70420                        | 56348                        | 52788
change in receivables                  | -2913 ( 2913 )               | -28853 ( 28853 )             | 30413
change in deferred revenue             | 5100                         | 24576                        | 10561
change in other assets and liabilities | 4172                         | 17495                        | -14247 ( 14247 )
net cash from operating activities     | $ 181001                     | $ 174247                     | $ 169438


american tower corporation subsidiaries notes to consolidated financial statements 2014 ( continued ) sfas no.
 148.
 in accordance with apb no.
 25 , company recognizes compensation expense based on excess of quoted stock price at grant date award or other measurement date over amount employee must pay to acquire stock.
 company 2019s stock option plans described in note 14.
 in december 2004  fasb issued sfas no.
 123 ( revised 2004 ) , 201cshare-based payment 201d ( sfas 123r ) described.
 year ended december 31, 2005 company reevaluated assumptions to estimate fair value of stock options issued to employees.
 company lowered expected volatility assumption for options granted after july 1, 2005 to approximately 30% ( 30 % ) increased expected life of option grants to 6. 25 years using simplified method permitted by sec sab no.
 107 , 201dshare-based payment 201d ( sab no.
 107 ).
 company made change based on factors including company 2019s execution of strategic plans to sell non-core businesses reduce leverage refinance debt recent merger with spectrasite , inc.
 note 2. management based volatility assumptions on historical volatility since inception included periods company 2019s capital structure more highly leveraged than current levels expected levels for foreseeable future.
 management 2019s estimate of future volatility based on consideration of all available information including historical volatility  implied volatility of publicly traded options  company 2019s current capital structure publicly announced future business plans.
 for comparative purposes 10% ( 10 % ) change in volatility assumption would change pro forma stock option expense and pro forma net loss by approximately $ 0. 1 million for year ended december 31 , 2005.
 see note 14.table illustrates effect on net loss per common share if company applied fair value recognition provisions of sfas no.
 123 ( as amended ) to stock-based compensation.
 estimated fair value of each option calculated using black-scholes option-pricing model ( in thousands except per share amounts ) :.
 company modified option awards to revise vesting exercise terms for terminated employees recognized charges of $ 7. 0 million , $ 3. 0 million $ 2. 3 million for years ended december 31 , 2005  2004 2003 .
 stock-based employee compensation amounts for year ended december 31 2005 include approximately $ 2. 4 million of unearned compensation amortization related to unvested stock options assumed in merger with spectrasite .
 charges reflected in impairments  net loss on sale of long-lived assets restructuring merger related expense with adjustments to additional paid-in capital unearned compensation in consolidated financial statements.
 recent accounting pronouncements 2014in december 2004  fasb issued sfas 123r  supersedes apb no.
 25  amends sfas no.
 95 , 201cstatement of cash flows. 201d statement addressed accounting for share-based payments to employees including grants of employee stock options.
 under new standard

| 2005                 | 2004                 | 2003
--------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | -------------------- | --------------------
net loss as reported                                                                                | $ -171590 ( 171590 ) | $ -247587 ( 247587 ) | $ -325321 ( 325321 )
add : stock-based employee compensation expense net of related tax effect included in net loss as reported                              | 7104                 | 2297                 | 2077
less : total stock-based employee compensation expense determined under fair value based method for all awards net of related taxeffect | -22238 ( 22238 )     | -23906 ( 23906 )     | -31156 ( 31156 )
pro-forma net loss                                                                                | $ -186724 ( 186724 ) | $ -269196 ( 269196 ) | $ -354400 ( 354400 )
basic and diluted net loss per share as reported                                                                                | $ -0.57 ( 0.57 )     | $ -1.10 ( 1.10 )     | $ -1.56 ( 1.56 )
basic and diluted net loss per share pro-forma                                                                                | $ -0.62 ( 0.62 )     | $ -1.20 ( 1.20 )     | $ -1.70 ( 1.70 )


five-year stock performance graph graph illustrates cumulative total shareholder return on snap-on common stock since december 31  2007 assuming dividends reinvested.
 graph compares snap-on 2019s performance to standard & poor 2019s 500 stock index ( 201cs&p 500 201d ) and peer group.
 snap-on incorporated total shareholder return ( 1 ) fiscal year ended ( 2 ) snap-on incorporated peer group ( 3 ) s&p 500.
 1 assumes $ 100 invested on december 31, 2007 dividends reinvested quarterly.
 2 company's fiscal year ends saturday or nearest to december 31 of each year ; for calculation fiscal year end assumed be december 31.
 3 ) peer group consists of : stanley black & decker , inc. danaher corporation , emerson electric co. , genuine parts company , newell rubbermaid inc. pentair ltd. spx corporation w.
 grainger , inc.
 cooper industries plc  former member of peer group removed acquired by larger non-comparable company in 2012.
 2012 annual report 23 snap-on incorporated peer group s&p 500 2007 2008 201120102009 2012

fiscal year ended ( 2 ) | snap-onincorporated | peer group ( 3 ) | s&p 500
----------------------- | ------------------- | ---------------- | --------
december 31 2007        | $ 100.00            | $ 100.00         | $ 100.00
december 31 2008        | 83.66               | 66.15            | 63.00
december 31 2009        | 93.20               | 84.12            | 79.67
december 31 2010        | 128.21              | 112.02           | 91.67
december 31 2011        | 117.47              | 109.70           | 93.61
december 31 2012        | 187.26              | 129.00           | 108.59


hologic , inc.
 notes to consolidated financial statements ( continued ) ( in thousands  except per share data ) acquisition provides for up to two annual earn out payments not to exceed $ 15000 aggregate based on biolucent 2019s achievement of certain revenue targets.
 company considered provision of eitf issue no.
 95-8 , accounting for contingent consideration paid to shareholders of acquired enterprise in purchase business combination concluded contingent consideration will represent additional purchase price.
 goodwill increased by amount additional consideration if when it becomes due and payable.
 allocation of purchase price based upon preliminary estimates of fair value of assets acquired and liabilities assumed as of september 18 , 2007.
 company in process of gathering information to finalize valuation of certain assets and liabilities.
 purchase price allocation will finalized once company has all necessary information to complete estimate generally no later than one year from date of acquisition.
 components and initial allocation of purchase price  consists of following approximate amounts:.
 part of purchase price allocation all intangible assets part of acquisition identified and valued.
 determined only customer relationship , trade name and developed technology and know how had separately identifiable values.
 fair value of these intangible assets determined through application of income approach.
 customer relationship represents large customer base expected to purchase this disposable product on regular basis.
 trade name represents biolucent product names company intends to continue to use.
 developed technology and know how represents currently marketable purchased products company continues to sell utilize enhance and incorporate into company 2019s existing products.
deferred income tax liability relates to tax effect of acquired identifiable intangible assets  fair value adjustments to acquired inventory amounts not deductible for tax partially offset by acquired net operating loss carryforwards of approximately $ 2400.
 fiscal 2006 acquisitions : on may 2 , 2006 , company acquired 100% ( 100 % ) of outstanding voting stock of aeg elektrofotografie gmbh and group of related companies ( aeg ).
 results of operations for aeg included in company 2019s consolidated financial statements from date of acquisition as part of other business segment.
 company concluded acquisition of aeg not represent material business combination no pro forma financial information provided.
 aeg specializes in manufacture of photoconductor materials for in electro photographic applications including for coating of company 2019s digital detectors.
 acquisition of aeg allows company control over critical step in detector manufacturing process 2014to efficiently manage

net tangible assets acquired as of september 18 2007 | $ 2800
---------------------------------------------------- | --------------
developed technology and know how                    | 12300
customer relationship                                | 17000
trade name                                           | 2800
deferred income tax liabilities net                  | -9500 ( 9500 )
goodwill                                             | 47800
estimated purchase price                             | $ 73200


accounts receivable , net october 31 , 2006 october 31 , 2005 dollar change change.
 increase in accounts receivable due to increased billings during fiscal year ended october 31 , 2006.
 days sales outstanding ( dso ) 39 days at october 31 , 2006 and 36 days at october 31 , 2005.
 accounts receivable and dso driven by billing and collections activities.
 net working capital working is comprised of current assets less current liabilities shown on balance sheet.
 as of october 31 , 2006 working capital was $ 23. 4 million  compared to $ 130. 6 million as of october 31 , 2005.
 decrease in net working capital of $ 107. 2 million due to decrease of $ 73. 7 million in cash and cash equivalents decrease of current deferred tax assets of $ 83. 2 million  due to tax accounting method change decrease in income taxes receivable of $ 5. 8 million ; increase in income taxes payable of $ 21. 5 million ; increase in deferred revenue of $ 29. 9 million net increase of $ 2. 8 million in accounts payable and other liabilities included reclassification of debt of $ 7. 5 million from long term to short term debt.
 decrease partially offset by increase in short-term investments of $ 59. 9 million increase in prepaid and other assets of $ 27. 4 million  includes land of $ 23. 4 million reclassified from property plant and equipment to asset held for sale within prepaid expense other assets consolidated balance sheet increase in accounts receivable of $ 22. 4 million.
 other commitments 2014revolving credit facility on october 20 , 2006  entered into five-year , $ 300. 0 million senior unsecured revolving credit facility for loans to synopsys and foreign subsidiaries.
 facility replaces previous $ 250.0 million senior unsecured credit facility terminated effective october 20 , 2006.
 amount facility may be increased by to additional $ 150. 0 million through fourth year facility.
 facility contains financial covenants requiring to maintain minimum leverage ratio and specified levels of cash other non-financial covenants.
 facility terminates on october 20 , 2011.
 borrowings under facility bear interest at greater administrative agent 2019s prime rate or federal funds rate plus 0. 50% ( 0. 50 % ) ; option to pay interest based on outstanding amount at eurodollar rates plus spread between 0. 50% ( 0. 50 % ) and 0. 70% ( 0. 70 % ) based on pricing grid tied to financial covenant.
 commitment fees payable facility at rates between 0. 125% ( 0. 125 % ) and 0. 175% ( 0. 175 % ) per year based on pricing grid tied to financial covenant.
 as of october 31 , 2006 no outstanding borrowings under credit facility in compliance with all covenants.
 believe current cash , cash equivalents , short-term investments , cash generated from operations available credit under credit facility will satisfy business requirements for at least next twelve months.

october 31 2006         | october 31 2005         | dollar change | % (  % ) change
----------------------- | ----------------------- | ------------- | ---------------
( dollars in millions ) | ( dollars in millions ) |               |
$ 122.6                 | $ 100.2                 | $ 22.4        | 22% ( 22 % )


jpmorgan chase & co. /2014 annual report 291 not recorded on consolidated balance sheets until settlement date.
 unsettled reverse repurchase agreements and securities borrowing agreements predominantly consist of with regular-way settlement periods.
 loan sales- and securitization-related indemnifications mortgage repurchase liability in connection with firm 2019s mortgage loan sale and securitization activities with gses  described in note 16  firm made representations warranties that loans sold meet certain requirements.
 firm may be required to repurchase loans/or indemnify gses (. with 201cmake-whole 201d payments to reimburse gses for realized losses on liquidated loans ).
 repurchase demands received relate to loans firm purchased from third parties remain viable firm right to seek recovery of related repurchase losses from third party.
 maximum amount of future payments firm required to make for breaches of representations and warranties equal to unpaid principal balance of loans deemed have defects sold to purchasers ( including securitization-related spes ) plus in certain circumstances accrued interest on loans and certain expense.
 table summarizes change in mortgage repurchase liability for each periods presented.
 summary of changes in mortgage repurchase liability ( a ) year ended december 31 , ( in millions ) 2014 2013 2012 repurchase liability at beginning of period $ 681 $ 2811 $ 3557 net realized gains/ ( losses ) ( b ) 53 ( 1561 ) ( 1158 ).
 ( benefit ) /provision for repurchase ( c ) ( 459 ) ( 390 ) 412 repurchase liability at end of period $ 275 $ 681 $ 2811 ) on october 25, 2013  firm announced reached a $.1 billion agreement with fhfa to resolve limited exposures outstanding future mortgage repurchase demands associated with loans sold to gses from 2000 to 2008.
 ( b ) presented net of third-party recoveries included principal losses accrued interest on repurchased loans , 201cmake-whole 201d settlements , settlements with claimants  certain related expense.
 make-whole settlements were $ 11 million , $ 414 million $ 524 million  for years ended december 31, 2014 , 2013 2012  respectively.
 ( c ) included provision related to new loan sales of $ 4 million , $ 20 million $ 112 million  for years ended december 31 , 2014 , 2013 2012 .
 private label securitizations liability related to repurchase demands private label securitizations separately evaluated by firm in establishing litigation reserves.
 november 15 , 2013  firm announced reached $ 4. 5 billion agreement with 21 major institutional investors to binding offer to trustees of 330 residential mortgage-backed securities trusts issued by j. p. morgan , chase  bear stearns ( 201crmbs trust settlement 201d ) to resolve all representation warranty claims all servicing claims on all trusts issued by j.
 morgan  chase  bear stearns between 2005 and 2008.
 seven trustees for group 330 trusts accepted rmbs trust settlement for 319 trusts in whole or in part excluded from settlement 16 trusts in whole or in part.
 trustees 2019 acceptance subject to judicial approval proceeding initiated by trustees pending in new york state court.
from 2005 to 2008 , washington mutual made loan level representations and warranties with approximately $ 165 billion of residential mortgage loans originally sold or deposited into private-label securitizations by.
 of $ 165 billion , approximately $ 78 billion repaid.
 approximately $ 49 billion of principal amount of such loans liquidated with average loss severity of 59% ( 59 % ).
 remaining outstanding principal balance of these loans as of december 31 , 2014  was approximately $ 38 billion  of $ 8 billion was 60 days or more past due.
 firm believes repurchase obligations related to loans remain with fdic receivership.
 for additional information regarding litigation , see note 31.
 loans sold with recourse firm provides servicing for mortgages and commercial lending products on recourse and nonrecourse basis.
 in nonrecourse servicing  principal credit risk to firm is cost of temporary servicing advances of funds (. normal servicing advances ).
 in recourse servicing  servicer agrees to share credit risk with owner of mortgage loans  fannie mae freddie mac private investor insurer guarantor.
 losses on recourse servicing occur when foreclosure sales proceeds of property underlying defaulted loan are less than sum of outstanding principal balance , plus accrued interest on loan and cost of holding and disposing of underlying property.
 firm 2019s securitizations are predominantly nonrecourse  transferring risk of future credit losses to purchaser of mortgage-backed securities issued trust.
 at december 31 , 2014 and 2013  unpaid principal balance of loans sold with recourse totaled $ 6. 1 billion and $ 7. 7 billion , respectively.
 carrying value of related liability firm recorded representative of firm 2019s view of likelihood it

year ended december 31 ( in millions )      | 2014         | 2013           | 2012
------------------------------------------- | ------------ | -------------- | --------------
repurchase liability at beginning of period | $ 681        | $ 2811         | $ 3557
net realized gains/ ( losses ) ( b )        | 53           | -1561 ( 1561 ) | -1158 ( 1158 )
reclassification to litigation reserve      | 2014         | -179 ( 179 )   | 2014
( benefit ) /provision for repurchase ( c ) | -459 ( 459 ) | -390 ( 390 )   | 412
repurchase liability at end of period       | $ 275        | $ 681          | $ 2811


visa inc.
 notes to consolidated financial statements 2014 continued ) september 30 , 2016 note 16 2014share-based compensation 2007 equity incentive compensation plan company 2019s 2007 equity incentive compensation plan  eip authorizes compensation committee board of directors to grant non-qualified stock options ( 201coptions 201d )  restricted stock awards ( 201crsas 201d ) restricted stock units ( 201crsus 201d ) performance-based shares to employees non-employee directors for up to 236 million shares of class a common stock.
 shares for award may be authorized unissued or previously issued shares acquired by company.
 eip in effect until all common stock under eip delivered all restrictions shares lapsed unless eip terminated earlier by company 2019s board of directors.
 january 2016  company 2019s board of directors approved amendment of eip effective february 3 , 2016  awards granted plan until january 31 , 2022.
 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 2016 , 2015 2014  company recorded share-based compensation cost related to eip of $ 211 million , $ 184 million $ 172 million , respectively in personnel on consolidated statements of operations.
 related tax benefits were $ 62 million , $ 54 million and $ 51 million for fiscal 2016 , 2015 2014 ,.
 amount of capitalized share-based compensation cost immaterial during fiscal 2016 , 2015 all per share amounts number of shares outstanding reflect four-for-one stock split effected in second quarter of fiscal 2015.
note 14 2014stockholders 2019 equity.
 options options issued under eip expire 10 years from date of grant vest ratably over 3 years from date grant subject to earlier vesting full under certain conditions.
 during fiscal 2016 , 2015 2014  fair value of each stock option estimated on date of grant using black-scholes option pricing model with weighted-average assumptions:.
 ( 1 ) assumption based on company 2019s historical option exercises set 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 2016 was approximately 77% ( 77 % ) and 23% ( 23 % ),  67% ( 67 % ) and 33% ( 33 % ) in fiscal 2015 58% ( 58 % ) and 42% ( 42 % ) in fiscal 2014 ,.

| 2016             | 2015             | 2014
-------------------------------- | ---------------- | ---------------- | ----------------
expected term ( in years ) ( 1 ) | 4.35             | 4.55             | 4.80
risk-free rate of return ( 2 )   | 1.5% ( 1.5 % )   | 1.5% ( 1.5 % )   | 1.3% ( 1.3 % )
expected volatility ( 3 )        | 21.7% ( 21.7 % ) | 22.0% ( 22.0 % ) | 25.2% ( 25.2 % )
expected dividend yield ( 4 )    | 0.7% ( 0.7 % )   | 0.8% ( 0.8 % )   | 0.8% ( 0.8 % )
fair value per option granted    | $ 15.01          | $ 12.04          | $ 11.03


part i item 1.
 business.
 general development business : altria group , inc.
 is holding company incorporated in commonwealth of virginia in 1985.
 at december 31 , 2014  altria group  inc. wholly-owned subsidiaries included philip morris usa inc.
 ( 201cpm usa 201d )  engaged predominantly in manufacture sale of cigarettes in united states ; john middleton co.
 ( 201cmiddleton 201d )  engaged in manufacture sale of machine-made large cigars pipe tobacco wholly- owned subsidiary of pm usa ; ust llc ( 201cust 201d ) wholly-owned subsidiaries including.
 smokeless tobacco company llc ( 201cusstc 201d ) ste.
 michelle wine estates ltd.
 ( 201cste.
 michelle 201d ) engaged in manufacture sale of smokeless tobacco products wine.
 altria group , inc. other operating companies included nu mark llc ( 201cnu mark 201d )  wholly-owned subsidiary engaged in manufacture sale of innovative tobacco products philip morris capital corporation ( 201cpmcc 201d ), wholly-owned subsidiary maintains portfolio of finance assets all leveraged leases.
 other altria group , inc.
 wholly-owned subsidiaries included altria group distribution company , provides sales , distribution consumer engagement services to altria group , inc.
 operating subsidiaries altria client services inc. provides support services  legal , regulatory  finance  human resources external affairs  to altria group , inc.
 subsidiaries.
 december 31 , 2014  altria group , inc.
held approximately 27% ( 27 % ) of economic and voting interest of sabmiller plc ( 201csabmiller 201d ) , which altria group , inc.
 accounts for under equity method of accounting.
 source of funds altria group , inc.
 is a holding company access to operating cash flows of wholly- owned subsidiaries consists of cash received from payment of dividends distributions  payment of interest on intercompany loans by subsidiaries.
 at december 31 , 2014  altria group. 2019s principal wholly-owned subsidiaries not limited by long-term debt or other agreements in ability to pay cash dividends or make other distributions equity interests.
 altria group  inc.
 receives cash dividends on interest in sabmiller if when sabmiller pays such dividends.
 financial information about segments altria group. reportable segments are smokeable products , smokeless products wine.
 financial services and innovative tobacco products businesses included in all other category due to continued reduction of lease portfolio of pmcc relative financial contribution of altria group. innovative tobacco products businesses to altria group. 2019s consolidated results.
 altria group. chief operating decision maker reviews operating companies income to evaluate performance of allocate resources to segments.
 operating companies income for segments defined as operating income before amortization of intangibles general corporate expenses.
 interest and other debt expense , net  provision for income taxes centrally managed at corporate level such items not presented by segment excluded from measure of segment profitability reviewed by altria group. chief operating decision maker.
 net revenues and operating companies income ( with reconciliation to earnings before income taxes ) attributable to each segment for each last three years set forth in note 15.
segment reporting to consolidated financial statements in item 8.
 financial statements supplementary data annual report on form 10-k ( 201citem 8 201d ).
 information about total assets by segment not disclosed not reported or used by altria group , inc. 2019s chief operating decision maker.
 segment goodwill other intangible assets net disclosed in note 4.
 goodwill assets consolidated financial statements item 8 ( 201cnote 4 201d ).
 accounting policies of segments same as described in note 2.
 summary significant accounting policies consolidated financial statements item 8 ( 201cnote 2 201d ).
 relative percentages of operating companies income ( loss ) attributable to each reportable segment all other category follows.
 items affecting comparability relative percentages operating companies income ( loss ) each reportable segment see note 15.
 segment reporting to consolidated financial statements in item 8 ( 201cnote 15 201d ).
 narrative description of business portions information called item included in item 7.
 management 2019s discussion analysis of financial condition results of operations - operating results by business segment of annual report on form 10-k.
 tobacco space altria group  inc. 2019s tobacco operating companies include pm usa, usstc subsidiaries of ust , middleton nu mark.
 altria group distribution company provides sales , distribution consumer engagement services to altria group  inc. tobacco operating companies.
 products of altria group. tobacco subsidiaries include smokeable tobacco products cigarettes manufactured sold by pm usa machine-made large altria_mdc_2014form10k_nolinks_crops. pdf 3 2/25/15 5:56 pm

| 2014               | 2013               | 2012
------------------ | ------------------ | ------------------ | ------------------
smokeable products | 87.2% ( 87.2 % )   | 84.5% ( 84.5 % )   | 83.7% ( 83.7 % )
smokeless products | 13.4               | 12.2               | 12.5
wine               | 1.7                | 1.4                | 1.4
all other          | -2.3 ( 2.3 )       | 1.9                | 2.4
total              | 100.0% ( 100.0 % ) | 100.0% ( 100.0 % ) | 100.0% ( 100.0 % )


republic services , inc.
 notes to consolidated financial statements 2014 continued plan to reflect allied acquisition.
 2006 plan , amended restated provides for grant of non- qualified stock options incentive stock options shares of restricted stock  phantom stock  stock bonuses restricted stock units stock appreciation rights performance awards dividend equivalents cash awards other stock-based awards.
 awards granted under 2006 plan prior to december 5 , 2008 became fully vested and nonforfeitable upon closing of acquisition.
 awards may be granted under 2006 plan after december 5, 2008 only to employees and consultants of allied and subsidiaries not employed by republic prior to date.
 as of december 31 , 2013  approximately 15. 6 million shares of common stock reserved for future grants under 2006 plan.
 stock options use lattice binomial option-pricing model to value stock option grants.
 recognize compensation expense on straight-line basis over requisite service period for each separately vesting portion of award or to employee 2019s retirement eligible date.
 expected volatility based on weighted average of most recent one year volatility and historical rolling average volatility of stock over expected life of option.
 risk-free interest rate based on federal reserve rates for bonds with maturity dates equal to expected term of option.
 use historical data to estimate future option exercises  forfeitures ( at 3. 0% 3. 0 % ) for each periods and expected life of options.
 appropriate separate groups of employees similar historical exercise behavior considered separately for valuation purposes.
 weighted-average estimated fair values of stock options granted during years ended december 31 , 2013 , 2012 and 2011 were $ 5. 27 , $ 4. 77 and $ 5.35 per option , respectively  calculated using following weighted-average assumptions:.

| 2013             | 2012             | 2011
----------------------------- | ---------------- | ---------------- | ----------------
expected volatility           | 28.9% ( 28.9 % ) | 27.8% ( 27.8 % ) | 27.3% ( 27.3 % )
risk-free interest rate       | 0.7% ( 0.7 % )   | 0.8% ( 0.8 % )   | 1.7% ( 1.7 % )
dividend yield                | 3.2% ( 3.2 % )   | 3.2% ( 3.2 % )   | 2.7% ( 2.7 % )
expected life ( in years )    | 4.5              | 4.5              | 4.4
contractual life ( in years ) | 7.0              | 7.0              | 7.0


as of december 31 , 2014 2013  liabilities associated with unrecognized tax benefits not material.
 we subsidiaries file income tax returns in u. s.
 federal jurisdiction and foreign jurisdictions.
 with few exceptions statute of limitations no longer open for u. s.
 federal or non-u. s.
 income tax examinations for years before 2011 other respect to refunds.
.
 income taxes and foreign withholding taxes not provided on earnings of $ 291 million, $ 222 million $ 211 million not distributed by non-u. s.
 companies as of december 31, 2014  2013 2012.
 intention is to permanently reinvest these earnings indefinitely postponing remittance to u. s.
 if earnings remitted estimate additional income taxes after foreign tax credits would have been approximately $ 55 million in 2014  $ 50 million in 2013 $ 45 million in 2012.
 federal and foreign income tax payments  net of refunds received were $ 1. 5 billion in 2014 $ 787 million in 2013 $ 890 million in 2012.
 2014 and 2013 net payments reflect $ 200 million and $ 550 million refund from irs attributable to tax-deductible discretionary pension contributions during fourth quarters of 2013 and 2012 2012 net payments reflect $ 153 million refund from irs related to 2011 capital loss carryback.
 note 8 2013 debt long-term debt consisted of following ( in millions ) :.
 in august 2014  entered into new $ 1. 5 billion revolving credit facility with syndicate of banks terminated existing $ 1. 5 billion revolving credit facility scheduled to expire in august 2016.
 new credit facility expires august 2019 may request banks may grant  increase to new credit facility of up to additional $ 500 million.
credit facility includes sublimit of up to $ 300 million available for issuance of letters of credit.
 no borrowings outstanding under new facility through december 31 , 2014.
 borrowings under new credit facility unsecured and bear interest at rates based  option on eurodollar rate or base rate as defined in new credit facility.
 each bank 2019s obligation to make loans under credit facility is subject to compliance with representations , warranties covenants including covenants limiting our ability subsidiaries ability to encumber assets and covenant not to exceed maximum leverage ratio as defined in credit facility.
 leverage ratio covenant excludes adjustments recognized in stockholders 2019 equity related to postretirement benefit plans.
 as of december 31 , 2014 in compliance with all covenants in credit facility debt agreements.
 agreements in with financial institutions for issuance of commercial paper.
 no commercial paper borrowings outstanding during 2014 or 2013.
 if to issue commercial paper borrowings would be supported by credit facility.
 in april 2013 repaid $ 150 million of long-term notes with fixed interest rate of 7. 38% ( 7. 38 % ) due to scheduled maturities.
 during next five years scheduled long-term debt maturities of $ 952 million due in 2016 and $ 900 million due in 2019.
 interest payments were $ 326 million in 2014, $ 340 million in 2013 $ 378 million in 2012.
 all existing unsecured and unsubordinated indebtedness rank equally in right of payment.
 note 9 2013 postretirement plans defined benefit pension plans retiree medical and life insurance plans employees are covered by qualified defined benefit pension plans and provide certain health care and life insurance benefits to eligible retirees ( collectively postretirement benefit plans ).
sponsor nonqualified defined benefit pension plans for benefits excess of qualified plan limits.
 non-union represented employees hired after december 2005 not participate in qualified defined benefit pension plans but eligible to participate in qualified

| 2014         | 2013
--------------------------------------------------------------------------- | ------------ | ------------
notes with rates from 2.13% ( 2.13 % ) to 6.15% ( 6.15 % ) due 2016 to 2042 | $ 5642       | $ 5642
notes with rates from 7.00% ( 7.00 % ) to 7.75% ( 7.75 % ) due 2016 to 2036 | 916          | 916
other debt                                                                  | 483          | 476
total long-term debt                                                        | 7041         | 7034
less : unamortized discounts                                                | -872 ( 872 ) | -882 ( 882 )
total long-term debt net                                                    | $ 6169       | $ 6152


management 2019s discussion analysis of financial condition results of operations 2013 continued ) ( amounts in millions except per share amounts ) net cash used in investing activities 2013 related to payments for capital expenditures acquisitions.
 capital expenditures of $ 173. 0 related to computer hardware software leasehold improvements.
 made payments of $ 61. 5 related to acquisitions completed 2013 net cash acquired.
 financing activities net cash used financing activities 2014 related to purchase of long-term debt repurchase of common stock payment of dividends.
 2014 redeemed all $ 350. 0 in aggregate principal amount of 6. 25% ( 6. 25 % ) notes  repurchased 14. 9 shares of common stock for aggregate cost of $ 275. 1  including fees made dividend payments of $ 159. 0 on common stock.
 offset by issuance of $ 500. 0 in aggregate principal amount of 4. 20% ( 4. 20 % ) notes.
 net cash used in financing activities 2013 related to purchase of long-term debt repurchase of common stock payment of dividends.
 redeemed all $ 600. 0 in aggregate principal amount of 10. 00% ( 10. 00 % ) notes.
 repurchased 31. 8 shares of common stock for aggregate cost of $ 481. 8  including fees made dividend payments of $ 126. 0 on common stock.
 foreign exchange rate changes effect foreign rate changes on cash cash equivalents consolidated statements cash flows resulted in decrease of $ 101. 0 in 2014.
 decrease result of.
 dollar stronger than several foreign currencies  including canadian dollar  brazilian real  australian dollar euro as of december 31 , 2014 compared to december 31 , 2013.
effect of foreign exchange rate changes on cash and cash equivalents in consolidated statements of cash flows resulted in decrease of $ 94. 1 in 2013.
 decrease primarily result of u. s.
 dollar being stronger than several foreign currencies , including australian dollar , brazilian real  canadian dollar  japanese yen  south african rand as of december 31 , 2013 compared to december 31 , 2012.
 liquidity outlook expect cash flow from operations , cash and cash equivalents to be sufficient to meet anticipated operating requirements at minimum for next twelve months.
 have committed corporate credit facility uncommitted facilities available to support operating needs.
 continue to maintain disciplined approach to managing liquidity , with flexibility over significant uses of cash , including capital expenditures , cash for new acquisitions  common stock repurchase program and common stock dividends.
 from time to evaluate market conditions and financing alternatives for opportunities to raise additional funds or improve liquidity profile, enhance financial flexibility manage market risk.
 ability to access capital markets depends on factors  include those specific to us , credit rating , and related to financial markets , amount or terms of available credit.
 can no guarantee able to access new sources of liquidity on commercially reasonable terms  or all.

balance sheet data                              | december 31 , 2014 | december 31 , 2013
----------------------------------------------- | ------------------ | ------------------
cash cash equivalents and marketable securities | $ 1667.2           | $ 1642.1
short-term borrowings                           | $ 107.2            | $ 179.1
current portion of long-term debt               | 2.1                | 353.6
long-term debt                                  | 1623.5             | 1129.8
total debt                                      | $ 1732.8           | $ 1662.5


dish network corporation notes to consolidated financial statements - continued transaction accounted for as business combination using purchase price accounting.
 allocation of purchase consideration in table below.
 purchase allocation ( in thousands ).
 pro forma revenue and earnings associated with blockbuster acquisition not included in filing.
 due to material ongoing modifications of business  management determined insufficient information exists to develop meaningful historical pro forma financial information.
 historical operations of blockbuster changed during periods preceding acquisition result of blockbuster inc. 2019s bankruptcy proceedings historical pro forma information not useful in assessing post acquisition earnings and cash flows.
 cost of goods sold on unit basis for blockbuster in current period was lower-than-historical costs.
 carrying values in current period of rental library and merchandise inventories ( 201cblockbuster inventory 201d ) reduced to estimated fair value due to application of purchase accounting.
 impact on cost of goods sold on unit basis will diminish in future as purchase new blockbuster inventory.
 10.
 spectrum investments terrestar transaction gamma acquisition l. l. c.
 ( 201cgamma 201d )  wholly-owned subsidiary of dish network  entered into terrestar transaction on june 14 , 2011.
 on july 7, 2011  u. s.
 bankruptcy court for southern district of new york approved asset purchase agreement with terrestar paid $ 1. 345 billion of cash purchase price.
 dish network party to asset purchase agreement with respect to certain guaranty obligations.
 paid all but $ 30 million of purchase price for terrestar transaction  will be paid upon closing of terrestar transaction  or upon certain other conditions met under asset purchase agreement.
 consummation of acquisition in asset purchase agreement subject to approval by fcc.
 on february 7 , 2012 , canadian federal department of industry ( 201cindustry canada 201d ) approved transfer of canadian spectrum licenses held by terrestar to us.
 if remaining required approvals not obtained , subject to exceptions, we have right to require and direct sale of some or all terrestar assets to third party we entitled to proceeds from such sale.
 these proceeds could   be substantially less than amounts paid in terrestar transaction.
 gamma responsible for providing certain working capital and administrative expenses of terrestar and its subsidiaries after december 31 , 2011.
 we expect terrestar transaction will be accounted for as business combination using purchase price accounting.
 we expect to allocate purchase price to various components of acquisition based upon fair value of each component using various valuation techniques, including market approach , income approach/or cost approach.
 expect purchase price of terrestar assets to be allocated to  among , spectrum and satellites.

| purchase price allocation ( in thousands )
----------------------- | ------------------------------------------
cash                    | $ 107061
current assets          | 153258
property and equipment  | 28663
acquisition intangibles | 17826
other noncurrent assets | 12856
current liabilities     | -86080 ( 86080 )
total purchase price    | $ 233584


part ii item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities table presents reported quarterly high and low per share sale prices of our class a common stock on new york stock exchange ( nyse ) for years 2004 and 2003.
 march 18 , 2005  closing price of our class a common stock was $ 18. 79 per share march 18 , 2005  had 230604932 outstanding shares of class a common stock 743 registered holders.
 february 2004  all outstanding shares of class b common stock converted into shares class a common stock one-for-one basis 201cdodge conversion event 201d defined in our charter.
 charter prohibits future issuance of shares of class b common stock.
 in february 2004  all outstanding shares of class c common stock converted into shares class a common stock one-for-one basis.
 charter permits issuance of shares of class c common stock in future.
 information under 201csecurities authorized for issuance under equity compensation plans 201d from definitive proxy statement incorporated reference into item 12 of annual report.
 dividends never paid dividend on any class of common stock.
 anticipate may retain future earnings to fund development growth of business.
 indentures governing 93 20448% ( 20448 % ) senior notes due 2009, 7. 50% ( 7. 50 % ) senior notes due 2012  7. 125% ( 7. 125 % ) senior notes due 2012 prohibit us from paying dividends to stockholders unless satisfy financial covenants.
borrower subsidiaries prohibited under terms credit facility  subject to certain exceptions from making any direct or indirect distribution , dividend or other payment on account of limited liability company interests  partnership interests  capital stock or other equity interests except if no default exists created under credit facility borrower subsidiaries may pay cash dividends or make other distributions in accordance with credit facility within certain specified amounts may pay cash dividends make other distributions in respect of our outstanding indebtedness and permitted future indebtedness.
 indentures governing 12. 25% ( 12. 25 % ) senior subordinated discount notes due 2008 and 7. 25% ( 7. 25 % ) senior subordinated notes due 2011 of american towers , inc.
 ( ati )  our principal operating subsidiary  prohibit ati and certain other subsidiaries guaranteed notes ( sister guarantors ) from paying dividends making other payments or distributions us unless certain

2004                       | high    | low
-------------------------- | ------- | ------
quarter ended march 31     | $ 13.12 | $ 9.89
quarter ended june 30      | 16.00   | 11.13
quarter ended september 30 | 15.85   | 13.10
quarter ended december 31  | 18.75   | 15.19
2003                       | high    | low
quarter ended march 31     | $ 5.94  | $ 3.55
quarter ended june 30      | 9.90    | 5.41
quarter ended september 30 | 11.74   | 8.73
quarter ended december 31  | 12.00   | 9.59


bhge 2018 form 10-k | 41 estimate equal up to 5% ( 5 % ) of annual revenue.
 expenditures expected used primarily for normal recurring items necessary support business.
 anticipate making income tax payments range of $ 425 million to $ 475 million in 2019.
 contractual obligations in table below  set forth contractual obligations as of december 31 , 2018.
 certain amounts table based on estimates and assumptions about obligations  including duration, anticipated actions by third parties other factors.
 contractual obligations pay in future periods may vary from table because estimates assumptions subjective.
 ( 1 ) amounts represent expected cash payments for principal amounts related to debt  including capital lease obligations.
 amounts for debt do not include deferred issuance costs or unamortized discounts or premiums including step up in value of debt on acquisition of baker hughes.
 expected cash payments for interest excluded from amounts.
 total debt and capital lease obligations includes $ 896 million payable to ge and affiliates.
 no fixed payment schedule on amount payable to ge and affiliates classified it as payable in less than one year.
 ( 2 ) amounts represent expected cash payments for interest on long-term debt and capital lease obligations.
 ( 3 ) amounts represent future minimum payments under noncancelable operating leases with initial or remaining terms of one year or more.
 operating leases  some include renewal options excluded renewal options from table above unless anticipated exercise such renewals.
 ( 4 ) purchase obligations include expenditures for capital assets for 2019 agreements to purchase goods or services enforceable and legally binding specify all significant terms  including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provisions ; approximate timing of transaction.
due to uncertainty with to timing of potential future cash outflows associated with uncertain tax positions, unable to make reasonable estimates of period of cash settlement  to respective taxing authorities.
 $ 597 million in uncertain tax positions , including interest and penalties, excluded from contractual obligations table.
 see "note 12.
 income taxes" of notes to consolidated combined financial statements in item 8 for further information.
 have certain defined benefit pension and other post-retirement benefit plans covering certain our u. s.
 and international employees.
 during 2018  made contributions and paid direct benefits of approximately $ 72 million with plans anticipate funding approximately $ 41 million during 2019.
 amounts for pension funding obligations based on assumptions subject to change currently not able to reasonably estimate contribution figures after 2019.
 see "note 11.
 employee benefit plans" of notes to consolidated combined financial statements in item 8 for further information.
 off-balance sheet arrangements in normal course of business with customers  vendors others entered into off-balance sheet arrangements  surety bonds for performance , letters of credit other bank issued guarantees  totaled approximately $ 3. 6 billion at december 31 , 2018.
 not practicable to estimate fair value of these financial instruments.
 none of off-balance sheet arrangements has or likely to have material effect on our consolidated and combined financial statements.

( in millions )                                | payments due by period total | payments due by period less than1 year | payments due by period 1 - 3years | payments due by period 4 - 5years | payments due by period more than5 years
---------------------------------------------- | ---------------------------- | -------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------------
total debt and capital lease obligations ( 1 ) | $ 6989                       | $ 942                                  | $ 562                             | $ 1272                            | $ 4213
estimated interest payments ( 2 )              | 3716                         | 239                                    | 473                               | 404                               | 2600
operating leases ( 3 )                         | 846                          | 186                                    | 262                               | 132                               | 266
purchase obligations ( 4 )                     | 1507                         | 1388                                   | 86                                | 25                                | 8
total                                          | $ 13058                      | $ 2755                                 | $ 1383                            | $ 1833                            | $ 7087


table of contents estimated amortization expense at september 26 , 2015 for each of five succeeding fiscal years was as follows:.
 goodwill in accordance with asc 350 , intangibles 2014goodwill other ( asc 350 ) , company tests goodwill for impairment at reporting unit level annual basis between annual tests if events circumstances indicate more likely not fair value of reporting unit is less than its carrying value.
 events could indicate impairment trigger interim impairment assessment include  current economic and market conditions , decline in market capitalization  significant adverse change in legal factors , business climate  operational performance business or key personnel  adverse action or assessment by regulator.
 in performing impairment test company utilizes two-step approach under asc 350.
 first step requires comparison of carrying value of each reporting unit to its estimated fair value.
 to estimate fair value of reporting units for step 1 company primarily utilizes income approach.
 income approach based on dcf analysis calculates fair value by estimating after-tax cash flows attributable to reporting unit and then discounting after-tax cash flows to present value using risk-adjusted discount rate.
 assumptions in dcf require significant judgment  including judgment about appropriate discount rates and terminal values , growth rates  amount and timing of expected future cash flows.
 forecasted cash flows based on company 2019s most recent budget and strategic plan for years beyond this period  company 2019s estimates are based on assumed growth rates expected as of measurement date.
 company believes assumptions consistent with plans and estimates used to manage underlying businesses.
 discount rates used to reflect risks in future cash flow projections based on estimates of weighted-average cost of capital ( 201cwacc 201d ) of market participants relative to each respective reporting unit.
market approach considers comparable market data based on multiples of revenue or earnings before interest  taxes  depreciation amortization ( 201cebitda 201d ) primarily used as corroborative analysis to results dcf analysis.
 company believes its assumptions to determine fair value of reporting units are reasonable.
 if different assumptions used  particularly with to forecasted cash flows terminal values waccs market multiples , different estimates of fair value may result potential impairment charge could result.
 actual operating results and related cash flows of reporting units could differ from estimated operating results related cash flows.
 if carrying value of reporting unit exceeds estimated fair value , company required to perform second step of goodwill impairment test to measure impairment loss  if.
 second step goodwill impairment test compares implied fair value of reporting unit 2019s goodwill to its carrying value.
 implied fair value of goodwill is derived by performing hypothetical purchase price allocation for each reporting unit as of measurement date allocating reporting unit 2019s estimated fair value to assets and liabilities.
 residual amount from allocation represents implied fair value of goodwill.
 to extent this amount is below carrying value of goodwill , impairment charge is recorded.
 company conducted its fiscal 2015 impairment test on first day of fourth quarter  used dcf and market approaches to estimate fair value of reporting units as of june 28 , 2015  ultimately used fair value determined by dcf approach in making impairment test conclusions.
 company believes it used reasonable estimates and assumptions about future revenue  cost projections  cash flows  market multiples discount rates as of measurement date.
result of completing step 1  all company's reporting units had fair values exceeding carrying values step 2 impairment test not required.
 had fair value of each reporting units passed step 1 lower than 10% ( 10 % ) , all reporting units would still have passed step 1 goodwill impairment test.
 at september 26 , 2015  company believes each reporting unit  with goodwill aggregating 2. 81 billion , not at risk of failing step 1 goodwill impairment test based on current forecasts.
 company conducted fiscal 2014 annual impairment test on first day of fourth quarter used dcf and market approaches to estimate fair value of reporting units as of june 29 , 2014  used fair value determined by dcf approach in making impairment test conclusions.
 company believes it used reasonable estimates and assumptions about future revenue , cost projections  cash flows  market multiples and discount rates source : hologic inc , 10-k , november 19 , 2015 powered by morningstar ae document research 2120 information herein may not be copied , adapted or distributed not warranted to be accurate  complete or timely.
 user assumes all risks for any damages or losses from use of this information except to extent damages or losses cannot be limited or excluded by applicable law.
 past financial performance is no guarantee of future results.

fiscal 2016 | $ 377.0
----------- | -------
fiscal 2017 | $ 365.6
fiscal 2018 | $ 355.1
fiscal 2019 | $ 343.5
fiscal 2020 | $ 332.3


december 31 .
 equity compensation plan information securities authorized for issuance in definitive proxy statement for 2017 annual meeting of stockholders under caption 201csecurities authorized for issuance under equity compensation plans , 201d incorporated by reference.
 item 6.
 selected financial data.
 table presents selected financial information for past five years ( in millions except per share amounts ).
 selected statement of operations information for three years ended december 31 , 2016 selected balance sheet information of december 31 , 2016 and 2015 derived from read in conjunction with information in item 7 , 201cmanagement 2019s discussion analysis of financial condition and results of operations , 201d audited consolidated financial statements in item 8 , 201cfinancial statements supplementary data , 201d other financial information included in annual report on form 10-k.
 selected statement of operations information for two years ended december 31 , 2013 and 2012 selected balance sheet information as of december 31, 2014 , 2013 2012 derived from financial statements not included in annual report on form 10-k.
 2016 2015 2014 2013 2012 selected statement of operations information : revenues $ 6497 $ 6394 $ 6265 $ 5535 $ 4487 operating income 2058 1985 2061 1975 1859 income from continuing operations, net of taxes 1218 1048 1137 1077 956 loss from discontinued operations , net of taxes 2014 ( 11 ) net income 1218 1048 1137 1077 945 net income available to discovery communications , inc.
 1194 1034 1139 1075 943 basic earnings per share available to discovery communications , inc.
 series a , b c common stockholders : continuing operations $ 1. 97 $ 1. 59 $ 1. 67 $ 1. 50 $ 1. 27 discontinued operations 2014 ( 0. 01 ) net income 1. 97 1.59 1. 67 1. 50 1. 25 diluted earnings per share discovery communications  inc.
 series a , b c common stockholders continuing operations $ 1. 96 $ 1. 58 $ 1. 66 $ 1. 49 $ 1. 26 discontinued operations 2014 ( 0. 01 ) net income 1. 96 1. 58 1. 66 1. 49 1. 24 weighted average shares outstanding basic 401 432 454 484 498 diluted 610 656 687 722 759 selected balance sheet information cash cash equivalents $ 300 $ 390 $ $ $ 1201 total assets 15758 15864 15970 14934 12892 long-term debt current portion 82 119 1107 17 31 long-term portion 7841 7616 6002 6437 5174 total liabilities 10348 10172 9619 8701 6599 redeemable noncontrolling interests 243 241 747 36 2014 equity discovery communications  inc.
 5167 5451 5602 6196 6291 total equity $ 5167 $ 5451 $ 5604 $ 6197 $ 6293 2022 income per share amounts not sum each calculated independently.
 2022 september 30 , 2016  company recorded-temporary impairment $ 62 million investment lionsgate.
 december 2 , 2016 company acquired 39% ( 39 % ) minority interest group nine media media holding company contributions $ 100 million digital network businesses seeker sourcefed gain $ 50 million deconsolidation businesses.
 see note 4 consolidated financial statements.

| december 312011 | december 312012 | december 312013 | december 312014 | december 312015 | december 312016
---------- | --------------- | --------------- | --------------- | --------------- | --------------- | ---------------
disca      | $ 100.00        | $ 154.94        | $ 220.70        | $ 168.17        | $ 130.24        | $ 133.81
discb      | $ 100.00        | $ 150.40        | $ 217.35        | $ 175.04        | $ 127.80        | $ 137.83
disck      | $ 100.00        | $ 155.17        | $ 222.44        | $ 178.89        | $ 133.79        | $ 142.07
s&p 500    | $ 100.00        | $ 113.41        | $ 146.98        | $ 163.72        | $ 162.53        | $ 178.02
peer group | $ 100.00        | $ 134.98        | $ 220.77        | $ 253.19        | $ 243.93        | $ 271.11


responsible parties  existing technology  laws regulations.
 ultimate liability for remediation difficult to determine of number of responsible parties involved site- specific cost sharing arrangements with parties degree of contamination by wastes scarcity quality of volumetric data related to sites speculative nature of remediation costs.
 current obligations not expected to material adverse effect on consolidated results of operations financial condition or liquidity.
 personal injury 2013 cost of personal injuries to employees others related to activities charged to expense based on estimates of ultimate cost and number of incidents each year.
 use third-party actuaries to assist measuring expense and liability including unasserted claims.
 federal employers 2019 liability act ( fela ) governs compensation for work-related accidents.
 damages assessed based on finding of fault through litigation or out-of-court settlements.
 offer comprehensive variety of services and rehabilitation programs for employees injured at work.
 annual expenses for personal injury-related events were $ 240 million in 2006 $ 247 million in 2005  $ 288 million in 2004.
 as of december 31 , 2006 and 2005  accrued liabilities of $ 631 million and $ 619 million for future personal injury costs of $ 233 million and $ 274 million recorded in current liabilities as accrued casualty costs.
 personal injury liability discounted to present value using applicable.
 treasury rates.
 approximately 87% ( 87 % ) of recorded liability related to asserted claims approximately 13% ( 13 % ) related to unasserted claims.
 estimates can vary over time due to evolving trends in litigation.
 personal injury claims activity : claims activity 2006 2005 2004.
 depreciation 2013 railroad industry is capital intensive.
 properties carried at cost.
provisions for depreciation computed on straight-line method based on estimated service lives of depreciable property.
 lives calculated using separate composite annual percentage rate for each depreciable property group based on results internal depreciation studies.
 required to submit report on depreciation studies and proposed depreciation rates to stb for review approval every three years for equipment property six years for road property.
 cost ( net of salvage ) of depreciable railroad property retired or replaced business charged to accumulated depreciation no gain or loss recognized.
 gain or loss recognized in other income for other property upon disposition gain loss not part of rail operations.
 cost of internally developed software capitalized and amortized over five-year period.
 significant capital spending increased total value of depreciable assets.
 cash capital spending totaled $ 2. 2 billion for year ended december 31 , 2006.
 year december 31 2006 depreciation expense was $ 1. 2 billion.
 use various methods to estimate useful lives for each group of depreciable property.
 due to capital intensive nature business large base of depreciable assets variances to estimates could have effect on consolidated financial statements.
 if estimated useful lives of all depreciable assets increased by one year annual depreciation expense would decrease by approximately $ 43 million.
 if estimated useful lives of all assets depreciated decreased by one year annual depreciation expense increase by approximately $ 45 million.
 income taxes 2013 required under fasb statement no.
 109 accounting for income taxes account for income taxes by recording taxes payable or refundable for current year and deferred tax assets and liabilities for future tax consequences of events recognized in financial statements or tax returns.

claims activity                           | 2006           | 2005           | 2004
----------------------------------------- | -------------- | -------------- | --------------
open claims beginning balance             | 4197           | 4028           | 4085
new claims                                | 4190           | 4584           | 4366
settled or dismissed claims               | -4261 ( 4261 ) | -4415 ( 4415 ) | -4423 ( 4423 )
open claims ending balance at december 31 | 4126           | 4197           | 4028


morgan stanley notes to consolidated financial statements 2014 ( continued ) consumer price index ).
 senior debt structured callable by company or extendible at option of holders of senior debt securities.
 debt containing provisions allow holders to put or extend notes aggregated $ 1175 million at december 31 , 2013 and $ 1131 million at december 31 , 2012.
 separate agreements entered by company 2019s subsidiaries allow holders to put notes aggregated $ 353 million at december 31 , 2013 and $ 1895 million at december 31 , 2012.
 subordinated debt and junior subordinated debentures issued to meet capital requirements of company or regulated subsidiaries primarily u. s.
 dollar denominated.
 senior debt 2014structured borrowings.
 company 2019s index-linked , equity-linked credit-linked borrowings include structured instruments payments and redemption values linked to performance of specific index ( e. g. , standard & poor 2019s 500 ) , basket of stocks specific equity security  credit exposure basket credit exposures.
 to minimize exposure from movements in underlying index, equity credit other position  company entered swap contracts purchased options convert borrowing costs into floating rates based libor.
 instruments included in preceding table at redemption values based on performance of underlying indices , baskets of stocks  specific equity securities , credit or other position or index.
 company carries entire structured borrowing at fair value or bifurcates embedded derivative carries it at fair value.
 swaps and purchased options used to economically hedge embedded features are derivatives carried at fair value.
 changes in fair value related to notes and economic hedges reported in trading revenues.
 see note 4 for further information on structured borrowings.
 subordinated debt junior subordinated debentures.
company 2019s long-term borrowings are subordinated notes of $ 9275 million contractual weighted average coupon of 4. 69% ( 4. 69 % ) at december 31 , 2013 and $ 5845 million weighted average coupon 4. 81% ( 4. 81 % ) at december 31 , 2012.
 junior subordinated debentures outstanding company were $ 4849 million at december 31, 2013 and $ 4827 million at december 31 , 2012 contractual weighted average coupon of 6. 37% ( 6. 37 % ) at both december 31 2013 and december 31  2012.
 maturities of subordinated and junior subordinated notes range from 2014 to 2067.
 maturities certain junior subordinated debentures can be extended to 2052 at company 2019s option.
 asset and liability management.
 securities inventories not financed by secured funding sources majority of company 2019s assets are financed with combination deposits short-term funding  floating rate long-term debt or fixed rate long-term debt swapped to floating rate.
 fixed assets generally financed with fixed rate long-term debt.
 company uses interest rate swaps to match borrowings to duration holding period interest rate characteristics of assets funded manage interest rate risk.
 swaps convert certain company 2019s fixed rate borrowings into floating rate obligations.
 for non-u.
 dollar currency borrowings not used to fund assets in same currency company entered into currency swaps convert borrowings into.
 dollar obligations.
 company 2019s use of swaps for asset liability management affected effective average borrowing rate as:.
 included in weighted average and effective average calculations are non-u.
 dollar interest rates.
.
company , through subsidiaries maintains funded unfunded committed credit facilities to support various businesses including collateralized commercial residential mortgage whole loan  derivative contracts  warehouse lending  emerging market loan  structured product  corporate loan  investment banking prime brokerage businesses.

| 2013           | 2012           | 2011
----------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
weighted average coupon of long-term borrowings at period-end ( 1 )                       | 4.4% ( 4.4 % ) | 4.4% ( 4.4 % ) | 4.0% ( 4.0 % )
effective average borrowing rate for long-term borrowings after swaps at period-end ( 1 ) | 2.2% ( 2.2 % ) | 2.3% ( 2.3 % ) | 1.9% ( 1.9 % )