table of contents table discloses purchases of shares our common stock made by us or behalf during fourth quarter of 2015.
 period total number of shares purchased average price paid per share total number of shares not purchased as part of publicly announced plans or programs total number of shares purchased as part of publicly announced plans or programs approximate dollar value of shares yet be purchased under plans or programs b ).
 shares reported in column represent purchases settled in fourth quarter of 2015 relating to our purchases of shares in open-market transactions meet obligations under stock-based compensation plans ii ) purchases of shares from employees and non-employee directors in connection with exercise of stock options vesting of restricted stock other stock compensation transactions in accordance with terms stock compensation plans.
 on july 13 , 2015  announced board of directors approved purchase of $ 2. 5 billion of outstanding common stock ( with no expiration date ) in addition to remaining amount available under $ 3 billion program previously authorized.
 during third quarter of 2015  completed purchases under $ 3 billion program.
 as of december 31 , 2015  had $ 1. 3 billion remaining available for purchase under $ 2. 5 billion program.

period        | total numberof sharespurchased | averageprice paidper share | total number ofshares notpurchased as part ofpublicly announcedplans or programs ( a ) | total number ofshares purchased aspart of publiclyannounced plans orprograms | approximate dollarvalue of shares thatmay yet be purchasedunder the plans orprograms ( b )
------------- | ------------------------------ | -------------------------- | -------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------
october 2015  | 1658771                        | $ 62.12                    | 842059                                                                                | 816712                                                                       | $ 2.0 billion
november 2015 | 2412467                        | $ 71.08                    | 212878                                                                                | 2199589                                                                      | $ 1.8 billion
december 2015 | 7008414                        | $ 70.31                    | 980                                                                                | 7007434                                                                      | $ 1.3 billion
total         | 11079652                       | $ 69.25                    | 1055917                                                                                | 10023735                                                                     | $ 1.3 billion


part iii item 10.
 directors  executive officers corporate governance.
 pursuant to section 406 of sarbanes-oxley act of 2002  adopted code of ethics for senior financial officers applies to principal executive officer principal financial officer  principal accounting officer controller  other persons performing similar functions.
 code of ethics for senior financial officers publicly available on our website at www. hologic. com.
 intend to satisfy disclosure requirement under item 5. 05 of current report on form 8-k regarding amendment to  or waiver from provision of code by posting information on our website at address specified above.
 additional information required by item incorporated by reference to definitive proxy statement for annual meeting of stockholders filed with securities and exchange commission within 120 days after close of fiscal year.
 item 11.
 executive compensation.
 information required by item incorporated by reference to definitive proxy statement for annual meeting of stockholders filed with securities and exchange commission within 120 days after close of fiscal year.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters.
 maintain number equity compensation plans for employees  officers directors others efforts contribute to our success.
 table below sets forth information as of end of fiscal year ended september 27, 2008 regarding shares of common stock available for grant or granted under stock option plans equity incentives i ) approved by stockholders  ii ) not approved by stockholders.
 number of securities exercise price of outstanding securities adjusted to reflect two-for-one stock splits effected on november 30 , 2005 and april 2 , 2008.
equity compensation plan information plan category number securities issued exercise outstanding options warrants rights weighted-average exercise price outstanding options  warrants rights number securities remaining available future issuance under equity compensation plans excluding securities reflected column ( a ) ) equity compensation plans approved by security holders.
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 15370814 $ 16. 10 19977099 equity compensation plans not approved by security holders ( 1 ).
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 582881 $ 3. 79 2014.
 ( 1 ) includes following plans : 1997 employee equity incentive plan 2000 acquisition equity incentive plan.
 description each plans follows : 1997 employee equity incentive plan.
 purposes 1997 employee equity incentive plan ( 201c1997 plan 201d ) adopted by board of directors in may 1997 attract retain key employees consultants advisors provide incentive assist achieving long-range performance goals  enable person participate long-term growth.
 general under 1997 plan  employees

plan category                                                    | number of securities to be issued upon exercise of outstanding options warrants and rights ( a ) | weighted-average exercise price of outstanding options warrants and rights ( b ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders           | 15370814                                                                                | $ 16.10                                                                          | 19977099
equity compensation plans not approved by security holders ( 1 ) | 582881                                                                                | $ 3.79                                                                           | 2014
total                                                            | 15953695                                                                                | $ 15.65                                                                          | 19977099


page 73 of 98 notes to consolidated financial statements ball corporation subsidiaries 15.
 shareholders 2019 equity at december 31 , 2006 company had 550 million shares common stock 15 million shares preferred stock authorized both without par value.
 preferred stock includes 120000 authorized unissued shares series a junior participating preferred stock.
 under company 2019s shareholder rights agreement dated july 26, 2006 one preferred stock purchase right ( right ) attached to each outstanding share ball corporation common stock.
 subject to adjustment each right entitles registered holder to purchase company one one-thousandth of share of series a junior participating preferred stock at exercise price $ 185 per right.
 if person or group acquires 10 percent or more of company 2019s outstanding common stock certain other events ) rights acquiring person ) become exercisable entitle holder to purchase shares ball corporation common stock at 50 percent discount.
 rights  expire in 2016 redeemable company at redemption price of $ 0. 001 per right trade with common stock.
 exercise rights cause substantial dilution to person or group attempting acquire control company without approval ball 2019s board of directors.
 rights not interfere with merger or other business combinations approved by board of directors.
 company reduced share repurchase program in 2006 to $ 45. 7 million  net of issuances compared to $ 358. 1 million net repurchases in 2005 and $ 50 million in 2004.
 net repurchases in 2006 did not include forward contract december 2006 for repurchase of 1200000 shares.
 contract settled on january 5 , 2007 for $ 51. 9 million in cash.
 connection with employee stock purchase plan company contributes 20 percent of up to $ 500 of each participating employee 2019s monthly payroll deduction toward purchase of ball corporation common stock.
company contributions for plan were $ 3. 2 million in 2006 $ 3. 2 million 2005 $ 2. 7 million in 2004.
 accumulated other comprehensive earnings ( loss ) activity related to was as follows : ( $ in millions ) foreign currency translation pension and postretirement items net of tax effective financial derivatives net tax accumulated comprehensive earnings ( loss ).
 2005 distribution to jobs act management 2019s intention is to indefinitely reinvest foreign earnings.
 no taxes provided on foreign currency translation component for any period.
 change in minimum pension liability net of tax expense of $ 2. 9 million for 2006 related tax benefits of $ 27. 3 million and $ 20. 8 million for 2005 and 2004 .
 change in effective financial derivatives net of related tax expense of $ 5. 7 million for 2006 related tax benefit of $ 10. 7 million for 2005 tax benefit $ 0. 2 million for 2004.

( $ in millions ) | foreign currency translation | pension and other postretirement items net of tax | effective financial derivatives net of tax | accumulated other comprehensive earnings ( loss )
----------------- | ---------------------------- | ------------------------------------------------- | ------------------------------------------ | -------------------------------------------------
december 31 2003  | $ 80.7                       | $ -93.1 ( 93.1 )                                  | $ 11.0                                     | $ -1.4 ( 1.4 )
2004 change       | 68.2                         | -33.2 ( 33.2 )                                    | -0.4 ( 0.4 )                               | 34.6
december 31 2004  | 148.9                        | -126.3 ( 126.3 )                                  | 10.6                                       | 33.2
2005 change       | -74.3 ( 74.3 )               | -43.6 ( 43.6 )                                    | -16.0 ( 16.0 )                             | -133.9 ( 133.9 )
december 31 2005  | 74.6                         | -169.9 ( 169.9 )                                  | -5.4 ( 5.4 )                               | -100.7 ( 100.7 )
2006 change       | 57.2                         | 8.0                                               | 6.0                                        | 71.2
december 31 2006  | $ 131.8                      | $ -161.9 ( 161.9 )                                | $ 0.6                                      | $ -29.5 ( 29.5 )


results of second step testing at december 31 , 2008  company recorded $ 9. 6 billion pretax ( $ 8. 7 billion after-tax ) goodwill impairment charge in fourth quarter of 2008  representing most of goodwill allocated to these reporting units.
 primary cause for goodwill impairment at december 31 , 2008 units was rapid deterioration in financial markets global economic outlook particularly period beginning mid-november through year-end 2008.
 significant fair value adjustments in pro forma purchase price allocation in second step testing were to fair value loans and debt made to identify and value identifiable intangibles.
 adjustments to measure assets , liabilities intangibles for measuring implied fair value of goodwill adjustments not reflected in consolidated balance sheet.
 following table shows reporting units with goodwill balances and excess of fair value as percentage over allocated book value as of december 31 , 2009.
 in millions of dollars reporting unit ( 1 ) fair value as % ( % ) of allocated book value goodwill.
 ( 1 ) local consumer lending 2014other excluded from table no goodwill allocated to it.
 no impairment noted in step one of company 2019s local consumer lending 2014cards reporting unit impairment test at november 30 , 2009  goodwill present in reporting unit may be sensitive to further deterioration in economic conditions.
 market approach for valuing reporting unit earnings multiples and transaction multiples selected from multiples using data from guideline companies and acquisitions.
 selection of actual multiple considers operating performance financial condition return on equity and net income growth of local consumer lending 2014cards compared guideline companies acquisitions.
for valuation under income approach , company utilized discount rate  believes reflects risk and uncertainty related to projected cash flows selected 2012 as terminal year.
 small deterioration in assumptions used in valuations , in particular discount rate and growth rate assumptions in net income projections  could affect company 2019s impairment evaluation and  results.
 if future differ adversely from management 2019s best estimate of key economic assumptions and associated cash flows decrease by small margin , company could potentially experience future material impairment charges with respect to $ 4683 million of goodwill remaining in local consumer lending 2014 cards reporting unit.
 any such charges  not negatively affect company 2019s tier 1 , tier 1 common and total capital regulatory ratios , tangible common equity or company 2019s liquidity position.

reporting unit ( 1 )                    | fair value as a % (  % ) of allocated book value | goodwill
--------------------------------------- | ------------------------------------------------ | --------
north america regional consumer banking | 174% ( 174 % )                                   | $ 2453
emea regional consumer banking          | 163                                              | 255
asia regional consumer banking          | 303                                              | 5533
latin america regional consumer banking | 215                                              | 1352
securities and banking                  | 203                                              | 8784
transaction services                    | 2079                                             | 1573
brokerage and asset management          | 161                                              | 759
local consumer lending 2014cards        | 112                                              | 4683


notes to consolidated financial statements continued ) 17.
 pension plans postretirement health care life insurance benefit plans continued ) benefit payments table sets forth amounts benefits expected to paid over next ten years from company 2019s pension postretirement plans as of december 31 , 2004:.
 18.
 stock compensation plans on may 18 , 2000  shareholders hartford approved hartford incentive stock plan ( 201c2000 plan 201d ) replaced hartford 1995 incentive stock plan ( 201c1995 plan 201d ).
 terms of 2000 plan similar to terms 1995 plan except 1995 plan had annual award limit higher maximum award limit.
 under 2000 plan  awards may be granted in form of non-qualified incentive stock options qualifying under section 422a of internal revenue code , performance shares restricted stock  combination of.
 stock appreciation rights may be granted in connection with all or part of stock options granted under 2000 plan.
 in december 2004  2000 plan amended to allow for grants of restricted stock units effective as of january 1 , 2005.
 aggregate number of shares of stock  awarded subject to maximum limit of 17211837 shares applicable to all awards for ten-year duration of 2000 plan.
 all options granted have exercise price equal to market price of company 2019s common stock on date of grant option 2019s maximum term is ten years and two days.
 certain options exercisable over three year period commencing one year from date of grant certain other options exercisable upon attainment of specified market price appreciation of company 2019s common shares.
 for any year no individual employee may receive award of options for more than 1000000 shares.
 as of december 31 , 2004  hartford had not issued incentive stock options under 2000 plan.
performance awards of common stock granted under 2000 plan become payable upon attainment of specific performance goals achieved over period not less than one nor more than five years restricted stock granted subject to restriction period.
 cumulative basis no more than 20% ( 20 % ) of aggregate number shares awarded under 2000 plan available for performance shares and restricted stock awards.
 maximum award of performance shares for any individual employee in any year is 200000 shares.
 in 2004 , 2003 2002  company granted shares of common stock of 315452 , 333712 40852 with weighted average prices of $ 64. 93 , $ 38. 13 $ 62. 28  to performance restricted stock.
 in 1996  company established hartford employee stock purchase plan ( 201cespp 201d ).
 under eligible employees of hartford may purchase common stock company at 15% ( 15 % ) discount from lower closing market price at beginning or end of quarterly offering period.
 company may sell up to 5400000 shares of stock to eligible employees under espp.
 in 2004  2003 2002 , 345262 , 443467 408304 shares were sold .
 per share weighted average fair value of discount under espp was $ 9. 31 , $ 11. 96 , and $ 11. 70 in 2004  2003 2002 .
 during 1997  hartford established employee stock purchase plans for certain employees of company 2019s international subsidiaries.
 under plans participants may purchase common stock of hartford at fixed price at end of three-year period.
 activity under these programs is not material.

| pension benefits | other postretirement benefits
--------- | ---------------- | -----------------------------
2005      | $ 125            | $ 30
2006      | 132              | 31
2007      | 143              | 31
2008      | 154              | 33
2009      | 166              | 34
2010-2014 | 1052             | 193
total     | $ 1772           | $ 352


advance auto parts , inc.
 subsidiaries notes to consolidated financial statements 2013 ( continued ) december 29 , 2007 , december 30 , 2006 december 31 , 2005 ( in thousands  except per share data ) 11.
 stock repurchase program : fiscal 2007  company's board of directors authorized new stock repurchase program up to $ 500000 company's common stock plus related expenses.
 new program cancelled replaced remaining portion previous $ 300000 stock repurchase program.
 program allows company to repurchase common stock open market or privately negotiated transactions time to time accordance with requirements securities and exchange commission.
 fiscal 2007  company repurchased 8341 shares of common stock aggregate cost of $ 285869 , average price $ 34. 27 per share 1330 shares common stock repurchased under previous $ 300000 stock repurchase program.
 as of december 29 , 2007  77 shares repurchased at aggregate cost of $ 2959 remained unsettled.
 fiscal 2007  company retired 6329 shares previously repurchased under stock repurchase programs.
 december 29 , 2007  company had $ 260567 remaining under current stock repurchase program.
 subsequent to december 29 , 2007  company repurchased 4563 shares of common stock aggregate cost of $ 155350 , average price $ 34. 04 per share.
 fiscal 2006  company retired 5117 shares of common stock previously repurchased under company prior stock repurchase program.
 shares repurchased during fiscal 2006 and fiscal 2005 aggregate cost of $ 192339 , average price $ 37. 59 per share.
 12.
income taxes : adoption of fin 48 on december 31 , 2006  company recorded increase of $ 2275 to liability for unrecognized tax benefits decrease in balance of retained earnings.
 table summarizes activity related to unrecognized tax benefits for fiscal year ended december 29 , 2007:.
 as of december 29 , 2007 entire unrecognized tax benefits if recognized would reduce company 2019s annual effective tax rate.
 with adoption of fin 48  company provides for interest and penalties income tax expense.
 during fiscal 2007  company accrued potential penalties and interest of $ 709 and $ 1827 , respectively related to unrecognized tax benefits.
 as of december 29 , 2007  company recorded liability for potential penalties and interest of $ 1843 and $ 4421 , respectively.
 prior to adoption of fin 48  company classified interest associated with tax contingencies in interest expense.
 company not provided for penalties associated with tax contingencies unless considered probable of assessment.
 company does not expect unrecognized tax benefits to change significantly over next 12 months.
 next 12 months possible company could conclude on $ 2000 to $ 3000 of contingencies associated with unrecognized tax uncertainties due to settlements expiration of statute of limitations ( including tax benefits interest penalties.
 majority of resolutions achieved through completion of current income tax examinations.

balance at december 31 2006                             | $ 16453
------------------------------------------------------- | --------------
gross increases related to prior period tax positions   | 1279
gross decreases related to prior period tax positions   | -1853 ( 1853 )
gross increases related to current period tax positions | 5340
settlements                                             | -539 ( 539 )
expiration of statute of limitations                    | -271 ( 271 )
balance at december 29 2007                             | $ 20409


year ended december 31 , 2006 compared to 2005 net revenues increased $ 149. 6 million  or 53. 2% (. 2 % )  to $ 430. 7 million in 2006 from $ 281. 1 million in 2005.
 increase result of increases net sales and license revenues in product category table below.
 net sales increased $ 143. 7 million  or 53. 0% ( 53. 0 % )  to $ 415. 0 million for year ended december 31  2006 from $ 271. 3 million same period 2005.
 increase net sales reflects : 2022 $ 26. 9 million footwear product sales  football cleats introduced second quarter 2006 baseball cleats introduced fourth quarter 2006 ; 2022 continued unit volume growth of existing products coldgear ae compression products sold to existing retail customers due to additional retail stores expanded floor space ; 2022 growth in average selling price of apparel products all categories ; increased women 2019s and youth market penetration relationships 2022 product introductions subsequent to december 31 2005 within all product categories in compression and training products.
 license revenues increased $ 5. 9 million  or 60. 8% ( 60. 8 % )  to $ 15. 7 million for year ended december 31 , 2006 from $ 9. 8 million same period 2005.
 increase in license revenues result of increased sales by licensees due to increased distribution  continued unit volume growth  new product offerings new licensing agreements included distribution products to college bookstores golf pro shops.
 gross profit increased $ 79. 7 million to $ 215. 6 million in 2006 from $ 135. 9 million in 2005.
 gross profit percentage of net revenues margin increased approximately 180 basis points to 50. 1% ( 50. 1 % ) in 2006 from 48. 3% ( 48. 3 % ) in 2005.
increase in gross margin driven by following : 2022 lower product costs of variations in product mix greater supplier discounts for increased volume lower cost sourcing arrangements , for approximate 170 basis point increase ; 2022 decreased close-out sales in 2006 period compared to 2005 period, for approximate 70 basis point increase ; 2022 lower customer incentives as percentage of net revenues , driven by changes to certain customer agreements decreased discounts increasing customer marketing expenditures recorded in selling , general administrative expenses , for approximate 70 basis point increase;

( in thousands )   | year ended december 31 , 2006 | year ended december 31 , 2005 | year ended december 31 , $ change | year ended december 31 , % (  % ) change
------------------ | ----------------------------- | ----------------------------- | --------------------------------- | ----------------------------------------
men 2019s          | $ 255681                      | $ 189596                      | $ 66085                           | 34.9% ( 34.9 % )
women 2019s        | 85695                         | 53500                         | 32195                             | 60.2% ( 60.2 % )
youth              | 31845                         | 18784                         | 13061                             | 69.5% ( 69.5 % )
apparel            | 373221                        | 261880                        | 111341                            | 42.5% ( 42.5 % )
footwear           | 26874                         | 2014                          | 26874                             | 2014
accessories        | 14897                         | 9409                          | 5488                              | 58.3% ( 58.3 % )
total net sales    | 414992                        | 271289                        | 143703                            | 53.0% ( 53.0 % )
license revenues   | 15697                         | 9764                          | 5933                              | 60.8% ( 60.8 % )
total net revenues | $ 430689                      | $ 281053                      | $ 149636                          | 53.2% ( 53.2 % )


transactions from matching buy/sell arrangements before april 1, 2006 continue reported as separate sale purchase transactions.
 adoption of eitf issue no.
 04-13 change in accounting for nontraditional derivative instruments no effect on net income.
 revenues and cost of revenues recognized after april 1, 2006 less than recognized under previous accounting practices.
 sfas no.
 123 ( revised 2004 ) 2013 december 2004  fasb issued sfas no.
 123 ( r ), 2018 2018share-based payment , 2019 revision of sfas no.
 123 , 2018 2018accounting for stock-based compensation. 2019 statement requires entities to measure cost of employee services received in exchange for award of equity instruments based on fair value of award on grant date.
 cost recognized over period during employee required provide service exchange for award usually vesting period.
 awards classified as liabilities remeasured at fair value each reporting period.
 marathon previously adopted fair value method under sfas no.
 123 for grants made modified settled on after january 1 , 2003.
 sfas no.
 123 ( r ) requires company to calculate pool of excess tax benefits to absorb tax deficiencies recognized subsequent to adopting statement.
 november 2005  fasb issued fsp no.
 123r-3 , 2018 2018transition election related to accounting for tax effects of share-based payment awards  2019 2019 alternative transition election ( 2018 2018short-cut method 2019 2019 ) to account for tax effects of share-based payment awards to employees.
 marathon elected long-form method to determine pool of excess tax benefits as of january 1 , 2006.
 marathon adopted sfas no.
123 ( r ) of january 1 , 2006 all awards granted modified or cancelled after adoption unvested portion of awards outstanding at january 1 , 2006.
 date of adoption sfas no.
 123 ( r ) requires assumed forfeiture rate applied to unvested awards awards classified as liabilities measured at fair value.
 prior to adopting sfas no.
 123 ( r ) marathon recognized forfeitures occurred applied intrinsic value method to awards classified as liabilities.
 adoption significant effect on marathon 2019s consolidated results of operations financial position cash flows.
 sfas no.
 151 2013 effective january 1, 2006 marathon adopted sfas no.
 151 , 2018 2018inventory costs 2013 amendment of arb no.
 43  chapter 4. 2019 statement requires items idle facility expense excessive spoilage double freight re-handling costs recognized as current-period charge.
 adoption significant effect on marathon 2019s consolidated results of operations financial position cash flows.
 sfas no.
 154 2013 effective january 1, 2006 marathon adopted sfas no.
 154 , 2018 2018accounting changes error corrections 2013 replacement of apb opinion no.
 20 fasb statement no.
 3. 2019 2019 sfas no.
 154 requires companies to recognize voluntary changes in accounting principle changes required by new accounting pronouncement pronouncement not include specific transition provisions retrospectively to prior periods 2019 financial statements unless impracticable to determine period-specific effects or cumulative effect of change.
 fin no.
 47 2013 march 2005 fasb issued fasb interpretation ( 2018 2018fin 2019 2019 ) no.
 47 , 2018 2018accounting for conditional asset retirement obligations 2013 interpretation of fasb statement no.
 143.2019 interpretation clarifies entity required to recognize liability for legal obligation perform asset retirement activities retirement conditional on future event if liability 2019s fair value can be reasonably estimated.
 if liability 2019s fair value cannot be reasonably estimated entity must disclose description of obligation 2 fact liability not recognized because fair value cannot be reasonably estimated 3 reasons why fair value cannot be reasonably estimated.
 fin no.
 47 clarifies when entity sufficient information to reasonably estimate fair value of asset retirement obligation.
 marathon adopted fin no.
 47 as of december 31, 2005.
 charge of $ 19 million , net of taxes of $ 12 million  related to adopting fin no.
 47 recognized as cumulative effect of change in accounting principle in 2005.
 time of adoption total assets increased $ 22 million total liabilities increased $ 41 million.
 pro forma net income net income per share effect as if fin no.
 47 applied during 2005 and 2004 not significantly different than amounts reported.
 following summarizes total amount of liability for asset retirement obligations if fin no.
 47 applied during all periods presented.
 pro forma impact of adoption of fin no.
 47 on unaudited pro forma liability amounts measured using information  assumptions interest rates used to measure obligation recognized upon adoption of fin no.
 47.
 ( in millions ).
 sfas no.
 153 2013 marathon adopted sfas no.
 153 , 2018 2018exchanges of nonmonetary assets 2013 amendment of apb opinion no.
 29 , 2019 2019 prospective basis as of july 1, 2005.
 amendment eliminates apb opinion no.
 29 exception for fair value recognition of nonmonetary exchanges of similar productive assets replaces with exception for exchanges of nonmonetary assets not commercial substance.
 fsp no.
 fas 19-1 2013 effective january 1 , 2005 marathon adopted fsp no.
 fas 19-1 , 2018 2018accounting suspended well costs 2019 amended guidance suspended exploratory well costs sfas no.
 19 , 2018 2018financial accounting reporting oil gas producing companies. 2019 2019 sfas no.
 19 requires costs drilling exploratory wells capitalized pending determination well found proved reserves.
 classification of proved

december 31 2003 | $ 438
---------------- | -----
december 31 2004 | 527
december 31 2005 | 711


republic services , inc.
 notes to consolidated financial statements 2014 ( continued ) high quality financial institutions.
 such balances may be in excess of fdic insured limits.
 to manage related credit exposure we monitor credit worthiness of financial institutions where we have deposits.
 concentrations of credit risk to trade accounts receivable limited due to wide variety of customers and markets in provide services dispersion of operations across many geographic areas.
 we provide services to small-container , large-container  municipal and residential  energy services customers in united states and puerto rico.
 perform ongoing credit evaluations of customers do not require collateral to support customer receivables.
 establish allowance for doubtful accounts based on factors including credit risk of specific customers age of receivables outstanding  historical trends  economic conditions other information.
 accounts receivable  net accounts receivable represent receivables from customers for collection , transfer , recycling , disposal  energy services other services.
 receivables recorded when billed or when related revenue earned represent claims against third parties settled in cash.
 carrying value of receivables , net of allowance for doubtful accounts and customer credits represents their estimated net realizable value.
 provisions for doubtful accounts evaluated monthly basis recorded based on historical collection experience age of receivables specific customer information economic conditions.
 review outstanding balances on account-specific basis.
 reserves provided for accounts receivable in excess of 90 days outstanding.
 past due receivable balances are written-off when collection efforts unsuccessful collecting amounts due.
 following table reflects activity in allowance for doubtful accounts for years ended december 31:.
 restricted cash and marketable securities as of december 31 , 2017  had $ 141.1 million of restricted cash and marketable securities $ 71. 4 million supports our insurance programs for workers 2019 compensation , commercial general liability commercial auto liability.
 additionally we obtain funds through issuance of tax-exempt bonds for financing qualifying expenditures at landfills  transfer stations collection recycling centers.
 funds deposited directly into trust accounts by bonding authorities at time of issuance.
 use of these funds is contractually restricted not ability to use funds for general operating purposes classified as restricted cash and marketable securities in our consolidated balance sheets.
 in normal course of business we may be required to provide financial assurance to governmental agencies of other entities in connection with municipal residential collection contracts  closure post- closure of landfills environmental remediation environmental permits business licenses permits as financial guarantee of performance.
 at several landfills  satisfy financial assurance requirements by depositing cash into restricted trust funds or escrow accounts.
 property and equipment record property and equipment at cost.
 expenditures for major additions improvements to facilities capitalized maintenance repairs charged to expense as incurred.
 when property is retired or

| 2017           | 2016           | 2015
---------------------------- | -------------- | -------------- | --------------
balance at beginning of year | $ 44.0         | $ 46.7         | $ 38.9
additions charged to expense | 30.6           | 20.4           | 22.7
accounts written-off         | -35.7 ( 35.7 ) | -23.1 ( 23.1 ) | -14.9 ( 14.9 )
balance at end of year       | $ 38.9         | $ 44.0         | $ 46.7


scheduled maturities of our marketable securities are as follows:.
 as of may 27 , 2018  not have cash and cash equivalents pledged as collateral for derivative contracts.
 as of may 27 , 2018  $ 0. 9 million of certain accounts receivable were pledged as collateral against foreign uncommitted line of credit.
 fair value and carrying amounts of long-term debt  including current portion were $ 14169. 7 million and $ 14268. 8 million , respectively as of may 27 , 2018.
 fair value of long-term debt estimated using market quotations and discounted cash flows based on current incremental borrowing rates for similar types instruments.
 long-term debt is a level 2 liability in fair value hierarchy.
 risk management activities ongoing operations exposed to market risks changes in interest foreign currency exchange rates commodity and equity prices.
 to manage these risks may enter into derivative transactions (.  futures  options  swaps ) pursuant to established policies.
 commodity price risk many commodities use in production distribution of products are exposed to market price risks.
 utilize derivatives to manage price risk for principal ingredients and energy costs  including grains wheat corn ) oils ( soybean ) dairy products  natural gas  diesel fuel.
 primary objective derivative contracts is to achieve certainty with future price of commodities purchased for in supply chain.
 manage exposures through purchase orders , long-term contracts with suppliers  exchange-traded futures and options  over-the-counter options and swaps.
 offset exposures based on current and projected market conditions seek to acquire inputs at as close to planned cost as possible.
 use derivatives to manage exposure to changes in commodity prices.
do not perform assessments required to achieve hedge accounting for commodity derivative positions.
 accordingly changes in values of these derivatives recorded in cost of sales in our consolidated statements of earnings.
 although do not meet criteria for cash flow hedge accounting , believe these instruments effective in achieving our objective of providing certainty in future price of commodities purchased for in supply chain.
 accordingly for measuring segment operating performance gains and losses reported in unallocated corporate items outside of segment operating results until exposure managing affects earnings.
 at we reclassify gain or loss from unallocated corporate items to segment operating profit , allowing operating segments to realize economic effects of derivative without experiencing mark-to-market volatility , remains in unallocated corporate items.

in millions              | available for sale cost | available for sale fair value
------------------------ | ----------------------- | -----------------------------
under 1 year ( current ) | $ 25.4                  | $ 25.4
equity securities        | 0.3                     | 3.5
total                    | $ 25.7                  | $ 28.9


arconic subsidiaries file income tax returns in.
 federal jurisdiction various states foreign jurisdictions.
 with few minor exceptions arconic no longer subject to income tax examinations by tax authorities for years prior to 2006.
 all.
 tax years prior to 2016 audited by internal revenue service.
 various state foreign jurisdiction tax authorities examining arconic 2019s income tax returns for tax years through 2015.
 reconciliation of beginning and ending amount unrecognized tax benefits ( excluding interest and penalties ):.
 for all periods portion of balance at end of year pertains to state tax liabilities presented before offset for federal tax benefits.
 effect of unrecognized tax benefits  if recorded impact annual effective tax rate for 2016 , 2015  2014 be approximately 6% ( 6 % ), 7% ( 7 % ) and 4% ( 4 % )  of pretax book income.
 arconic not anticipate changes in unrecognized tax benefits material impact on statement of consolidated operations during 2017 ( see tax in note l for for no reserve recognized ).
 arconic 2019s policy to recognize interest and penalties related to income taxes as component of provision for income taxes on statement of consolidated operations.
 in 2016 , 2015  2014  arconic did not recognize interest or penalties.
 due to expiration of statute of limitations  settlements with tax authorities refunded overpayments arconic recognized interest income of $ 1 in 2015 did not recognize any interest income in 2016 or 2014.
 as of december 31 , 2016 and 2015  amount accrued for payment of interest and penalties was $ 2 and $ 1 , respectively.
.
 receivables sale of receivables programs arconic has arrangement with three financial institutions to sell certain customer receivables without recourse on revolving basis.
sale of receivables completed through bankruptcy remote special purpose entity consolidated subsidiary of arconic.
 arrangement provides for minimum funding of $ 200 up to maximum $ 400 for receivables sold.
 on march 30 , 2012  arconic initially sold $ 304 of customer receivables in exchange for $ 50 in cash and $ 254 of deferred purchase price.
 arconic received additional net cash funding of $ 300 for receivables sold ( $ 1758 in draws and $ 1458 in repayments ) since program 2019s inception including $ 100 ( $ 500 in draws and $ 400 in repayments ) in 2016.
 no draws or repayments occurred in 2015.
 as of december 31 , 2016 and 2015 deferred purchase price receivable was $ 83 and $ 249  respectively included in other receivables on consolidated balance sheet.
 deferred purchase price receivable reduced as collections of underlying receivables occur ; revolving program sale of new receivables in increase in deferred purchase price receivable.
 net change in deferred purchase price receivable reflected in ( increase ) decrease in receivables line item on statement of consolidated cash flows.
 activity reflected as operating cash flow because related customer receivables result of operating activity with insignificant short-term interest rate risk.

december 31,                                    | 2016     | 2015     | 2014
----------------------------------------------- | -------- | -------- | --------
balance at beginning of year                    | $ 18     | $ 7      | $ 8
additions for tax positions of the current year | 12       | -        | -
additions for tax positions of prior years      | -        | 14       | 4
reductions for tax positions of prior years     | -        | -2 ( 2 ) | -3 ( 3 )
settlements with tax authorities                | -1 ( 1 ) | -        | -1 ( 1 )
expiration of the statute of limitations        | -1 ( 1 ) | -1 ( 1 ) | -
foreign currency translation                    | -        | -        | -1 ( 1 )
balance at end of year                          | $ 28     | $ 18     | $ 7


management 2019s discussion analysis of financial condition results of operations continued ) results drove changes in ccg operating income by amounts indicated:.
 1 higher gross margin from higher ccg platform revenue driven by higher average selling prices on notebook desktop platforms  offset by lower desktop notebook platform unit sales.
 2 lower gross margin from lower ccg platform revenue driven by lower desktop notebook platform unit sales  partially offset by higher average selling prices on desktop notebook tablet platforms.
 data center group segment product overview dcg operating segment offers platforms provide leading energy-efficient performance for server  network  storage applications.
 dcg focuses on lowering total cost of ownership on specific workload- optimizations for enterprise  cloud service providers communications service provider market segments.
 in 2016  launched platforms with functionalities advancements : 2022 intel ae xeon ae processor e5 v4 family  foundation for high performing clouds delivers energy-efficient performance for server  network storage workloads.
 2022 intel xeon processor e7 v4 family  targeted at platforms requiring four or more cpus processor family delivers high performance optimized for real-time analytics in-memory computing industry-leading reliability availability serviceability.
 2022 intel ae xeon phi 2122 product family  formerly code-named knights landing  with up to 72 high-performance intel processor cores  integrated memory fabric  common software programming model with intel xeon processors.
 intel xeon phi product family designed for highly parallel compute memory bandwidth-intensive workloads.
 intel xeon phi processors increase performance of supercomputers trillions of calculations per second address emerging data analytics artificial intelligence solutions.
2017  expect to release next generation intel xeon processors for compute  storage network ; next-generation intel xeon phi processor for deep learning ; suite of single-socket products including next-generation intel xeon e3 processors , next-generation intel atom processors  next-generation intel xeon-d processors for dense solutions.

( in millions ) | operating income reconciliation
--------------- | -----------------------------------------------------------------------------------------
$ 10646         | 2016 ccg operating income
1250            | lower ccg platform unit cost
905             | lower ccg operating expense
625             | higher gross margin from ccg platform revenue1
-645 ( 645 )    | higher factory start-up costs primarily driven by the ramp of our 10nm process technology
345             | other
$ 8166          | 2015 ccg operating income
-2060 ( 2060 )  | higher ccg platform unit costs
-1565 ( 1565 )  | lower gross margin from ccg platform revenue2
435             | lower factory start-up costs primarily driven by the ramp of our 14nm process technology
430             | lower production costs primarily on our 14nm products treated as period charges in 2014
375             | lower operating expense
224             | other
$ 10327         | 2014 ccg operating income


entergy texas , inc.
 management's financial discussion analysis net revenue 2008 compared to 2007 net revenue consists of operating revenues net of 1 ) fuel , fuel-related expenses  gas purchased for resale  2 ) purchased power expenses 3 ) other regulatory charges.
 analysis of change in net revenue comparing 2008 to 2007.
 amount ( in millions ).
 volume/weather variance due to decreased usage during unbilled sales period.
 see "critical accounting estimates" below note 1 to financial statements for discussion accounting for unbilled revenues.
 reserve equalization variance due to lower reserve equalization revenue related to changes in entergy system generation mix compared to period in 2007.
 securitization transition charge variance due to issuance of securitization bonds.
 in june 2007 entergy gulf states reconstruction funding i  company wholly-owned consolidated by entergy texas issued securitization bonds with proceeds purchased from entergy texas transition property right to recover from customers through transition charge amounts sufficient to service securitization bonds.
 see note 5 to financial statements for additional information securitization bonds.
 fuel recovery variance due to reserve for potential rate refunds in first quarter 2007 of puct ruling related to application past puct rulings addressing transition to competition in texas.
 other variance caused by operational effects of jurisdictional separation on revenues fuel and purchased power expenses.
 gross operating revenues  fuel purchased power expenses other regulatory charges gross operating revenues increased $ 229. 3 million due to reasons increase of $ 157 million in fuel cost recovery revenues due to higher fuel rates increased usage offset by interim fuel refunds to customers for fuel cost recovery over-collections through november 2007.
 refund distributed over two-month period beginning february 2008.
interim refund puct approval discussed in note 2 to financial statements ; increase of $ 37. 1 million in affiliated wholesale revenue due to increases cost energy ; increase in transition charge amounts collected from customers to service securitization bonds discussed above.
 see note 5 financial statements for additional information securitization bonds ; implementation of interim surcharge to collect $ 10. 3 million in under-recovered incremental purchased capacity costs incurred through july 2007.
 surcharge collected over two-month period beginning february 2008.
 incremental capacity recovery rider puct approval discussed in note 2 financial statements.

| amount ( in millions )
-------------------------------- | ----------------------
2007 net revenue                 | $ 442.3
volume/weather                   | -4.6 ( 4.6 )
reserve equalization             | -3.3 ( 3.3 )
securitization transition charge | 9.1
fuel recovery                    | 7.5
other                            | -10.1 ( 10.1 )
2008 net revenue                 | $ 440.9


table of contents performance graph shows cumulative total return to holder of company 2019s common stock , assuming dividend reinvestment , compared with cumulative total return  of standard & poor ( "s&p" ) 500 index and dow jones us financials index during period from december 31 , 2010 through december 31 , 2015.

| 12/10  | 12/11  | 12/12  | 12/13  | 12/14  | 12/15
----------------------------- | ------ | ------ | ------ | ------ | ------ | ------
e*trade financial corporation | 100.00 | 49.75  | 55.94  | 122.75 | 151.59 | 185.25
s&p 500 index                 | 100.00 | 102.11 | 118.45 | 156.82 | 178.29 | 180.75
dow jones us financials index | 100.00 | 87.16  | 110.56 | 148.39 | 170.04 | 170.19


page 30 of 94 included in capital spending amounts.
 example company 2019s decision in 2007 to contribute additional $ 44. 5 million ( $ 27. 3 million ) to pension plans overall debt reduction plan.
 consolidated free cash flow summarized:.
 estimate cash flows from operating activities for 2008 approximately $ 650 million  capital spending approximately $ 350 million free cash flow in $ 300 million range.
 capital spending of $ 259. 9 million ( net of $ 48. 6 million in insurance recoveries ) in 2007 below depreciation and amortization expense of $ 281 million.
 continue invest capital in best performing operations including projects to increase custom can capabilities improve beverage can end making productivity add more beverage can capacity expenditures in aerospace and technologies segment.
 $ 350 million planned capital spending for 2008  approximately $ 180 million spent on top-line sales growth projects.
 debt facilities and refinancing interest-bearing debt at december 31 , 2007  decreased $ 93. 1 million to $ 2358. 6 million from $ 2451. 7 million at december 31 , 2006.
 2007 debt decrease from 2006 attributed to debt payments offset by higher foreign exchange rates.
 at december 31 , 2007  $ 705 million available under company 2019s multi-currency revolving credit facilities.
 company had $ 345 million of short-term uncommitted credit facilities available at end of year $ 49. 7 million outstanding.
 on october 13 , 2005 ball refinanced senior secured credit facilities third and fourth quarters of 2005 ball redeemed 7. 75% (. 75 % ) senior notes due august 2006 through drawdown of funds under new credit facilities.
 refinancing and redemption resulted in pretax debt refinancing charge of $ 19. 3 million ( $ 12.3 million after tax ) reflect call premium with senior notes write off of unamortized debt issuance costs.
 company has receivables sales agreement provides for ongoing revolving sale of designated pool of trade accounts receivable of ball 2019s north american packaging operations  up to $ 250 million.
 agreement qualifies as off-balance sheet financing under statement of financial accounting standards ( sfas ) no.
 140  amended by sfas no.
 156.
 net funds from sale of accounts receivable totaled $ 170 million and $ 201. 3 million at december 31 , 2007 and 2006 reflected as reduction of accounts receivable in consolidated balance sheets.
 company not in default of loan agreement at december 31 , 2007  met all payment obligations.
.
 note agreements , bank credit agreement industrial development revenue bond agreements contain restrictions relating to dividends  investments financial ratios guarantees incurrence of additional indebtedness.
 additional details about company 2019s receivables sales agreement debt available in notes 7 and 13  accompanying consolidated financial statements within item 8 of report.

( $ in millions )                               | 2007             | 2006             | 2005
----------------------------------------------- | ---------------- | ---------------- | ----------------
cash flows from operating activities            | $ 673.0          | $ 401.4          | $ 558.8
incremental pension funding net of tax          | 27.3             | 2013             | 2013
capital spending                                | -308.5 ( 308.5 ) | -279.6 ( 279.6 ) | -291.7 ( 291.7 )
proceeds for replacement of fire-damaged assets | 48.6             | 61.3             | 2013
free cash flow                                  | $ 440.4          | $ 183.1          | $ 267.1


company 2019s 2017 reported tax rate includes $ 160. 9 million net tax benefits associated with tax act  $ 6. 2 million net tax benefits on special gains and charges net tax benefits of $ 25. 3 million with discrete tax items.
 company 2019s initial analysis of impact of tax act  provisional net discrete tax benefit of $ 160. 9 million recorded in period ended december 31 , 2017 includes $ 321. 0 million tax benefit for recording deferred tax assets and liabilities at u.
 enacted tax rate  net expense for one-time transition tax of $ 160. 1 million.
 company estimate of impact of reduction in u.
 rate on deferred tax assets liabilities and one-time transition tax  may be affected by other analyses related to tax act.
 special ( gains ) and charges represent tax impact of special charges additional tax benefits in anticipation of u. s.
 tax reform of $ 7. 8 million.
 during 2017 company recorded discrete tax benefit of $ 39. 7 million related to excess tax benefits resulting from adoption of accounting changes regarding treatment of tax benefits on share-based compensation.
 extent of excess tax benefits subject to variation in stock price and stock option exercises.
 company recorded net discrete expenses of $ 14. 4 million related to recognizing adjustments from filing 2016.
 federal income tax return and international adjustments due to changes in estimates partially offset by release of reserves for uncertain tax positions due to expiration of statute of limitations in state tax matters.
 during 2016  company recognized net expense related to discrete tax items of $ 3. 9 million.
 net expenses driven primarily by recognizing adjustments from filing company 2019s 2015 u. s.
federal income tax return offset by settlement of international tax matters remeasurement of deferred tax assets liabilities from application updated tax rates in international jurisdictions.
 net expense impacted by adjustments to deferred tax asset liability positions release of reserves for uncertain tax positions due to expiration of statute of limitations in non-u.
 jurisdictions.
 during 2015  company recognized net benefits related to discrete tax items of $ 63. 3 million.
 benefits driven by release of $ 20. 6 million valuation allowances based on realizability of foreign deferred tax assets ability recognize worthless stock deduction of $ 39. 0 million for tax basis in wholly-owned domestic subsidiary.
 reconciliation of beginning ending gross liability for unrecognized tax benefits.
 total unrecognized tax benefits if recognized would have affected effective tax rate by $ 47. 1 million as of december 31 , 2017  $ 57. 5 million december 31, 2016 $ 59. 2 million as of december 31 , 2015.
 company recognizes interest penalties related to unrecognized tax benefits in provision for income taxes.
 during 2017 , 2016 2015 company released $ 0. 9 million , $ 2. 9 million $ 1. 4 million related to interest and penalties.
 company had $ 9. 3 million , $ 10. 2 million $ 13. 1 million of accrued interest  including minor amounts for penalties at december 31 , 2017  2016 2015 .

( millions )                                                 | 2017           | 2016         | 2015
------------------------------------------------------------ | -------------- | ------------ | ------------
balance at beginning of year                                 | $ 75.9         | $ 74.6       | $ 78.7
additions based on tax positions related to the current year | 3.2            | 8.8          | 5.8
additions for tax positions of prior years                   | -              | 2.1          | 0.9
reductions for tax positions of prior years                  | -4.9 ( 4.9 )   | -1.0 ( 1.0 ) | -8.8 ( 8.8 )
reductions for tax positions due to statute of limitations   | -14.0 ( 14.0 ) | -5.5 ( 5.5 ) | -1.6 ( 1.6 )
settlements                                                  | -10.8 ( 10.8 ) | -2.0 ( 2.0 ) | -4.2 ( 4.2 )
assumed in connection with acquisitions                      | 10.0           | -            | 8.0
foreign currency translation                                 | 2.1            | -1.1 ( 1.1 ) | -4.2 ( 4.2 )
balance at end of year                                       | $ 61.5         | $ 75.9       | $ 74.6


57management's discussion analysis of financial condition results of operations facility include covenants to net interest coverage total debt-to-book capitalization ratios.
 company in compliance with terms 3-year credit facility at december 31 , 2005.
 company never borrowed under domestic revolving credit facilities.
 utilization of non-u.
 credit facilities may dependent on company's ability to meet conditions at time borrowing requested.
 contractual obligations  guarantees  purchase commitments contractual obligations summarized in table below are company's obligations commitments to make future payments under debt obligations ( assuming earliest exercise of rights by holders ) lease payment obligations  purchase obligations as of december 31 , 2005.
 payments due by period ( 1 ) ( in millions ) total 2006 2007 2008 2009 2010.
 1 amounts included represent firm non-cancelable commitments.
 debt obligations at december 31 , 2005 company's long-term debt obligations  including current maturities unamortized discount issue costs totaled $ 4. 0 billion  compared to $ 5. 0 billion at december 31 , 2004.
 table of all outstanding long-term debt securities found in note 4 , ""debt and credit facilities'' to company's consolidated financial statements.
 decrease in long- term debt obligations compared to december 31, 2004 due to redemptions repurchases of $ 1. 0 billion principal amount of outstanding securities during 2005.
 remaining $ 118 million of 7. 6% ( 7. 6 % ) notes due january 1 , 2007 reclassified to current maturities of long-term debt.
 lease obligations : company owns most of major facilities but certain office  factory warehouse space  land  information technology other equipment under principally non-cancelable operating leases.
at december 31 , 2005  future minimum lease obligations , net of minimum sublease rentals totaled $ 1. 2 billion.
 rental expense , net of sublease income, was $ 254 million in 2005 , $ 217 million in 2004 $ 223 million in 2003.
 purchase obligations : company entered into agreements for purchase of inventory , license of software  promotional agreements research and development agreements firm commitments not cancelable.
 longest of agreements extends through 2015.
 total payments expected under these agreements total $ 992 million.
 commitments under other long-term agreements : company entered into certain long-term agreements to purchase software , components  supplies materials from suppliers.
 most agreements extend for periods one to three years ( three to five years for software ).
 agreements do not obligate company to make purchases many permit company to terminate agreement with advance notice ( usually from 60 to 180 days ).
 if company to terminate agreements liable for certain termination charges typically based on work performed supplier on-hand inventory and raw materials attributable to canceled orders.
 company liability only arise in event it terminates agreements for reasons other than ""cause. '' in 2003  company entered into outsourcing contracts for certain corporate functions benefit administration information technology related services.
 contracts generally extend for 10 years expected to expire in 2013.
 total payments under contracts are approximately $ 3 billion over 10 years ; contracts can be terminated.
 termination would result in penalty substantially less than annual contract payments.
 company required to find another source for services including possibility of performing in-house.
customary in bidding for completing network infrastructure projects pursuant to practice company followed for many years , company has number of performance/bid bonds standby letters of credit outstanding , primarily relating to projects of government enterprise mobility solutions segment networks segment.
 these instruments have maturities of up to three years standard in the

( in millions )               | payments due by period ( 1 ) total | payments due by period ( 1 ) 2006 | payments due by period ( 1 ) 2007 | payments due by period ( 1 ) 2008 | payments due by period ( 1 ) 2009 | payments due by period ( 1 ) 2010 | payments due by period ( 1 ) thereafter
----------------------------- | ---------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------------
long-term debt obligations    | $ 4033                             | $ 119                             | $ 1222                            | $ 200                             | $ 2                               | $ 529                             | $ 1961
lease obligations             | 1150                               | 438                               | 190                               | 134                               | 109                               | 84                                | 195
purchase obligations          | 992                                | 418                               | 28                                | 3                                 | 2                                 | 2                                 | 539
total contractual obligations | $ 6175                             | $ 975                             | $ 1440                            | $ 337                             | $ 113                             | $ 615                             | $ 2695


aeronautics 2019 operating profit for 2011 increased $ 132 million or 9% ( 9 % )  compared to 2010.
 increase attributable to $ 115 million higher operating profit on c-130 programs due to increased volume retirement of risks ; increased volume risk retirements on f-16 programs $ 50 million c-5 programs $ 20 million $ 70 million due to risk retirements on other aeronautics sustainment activities in 2011.
 increases offset by decline in operating profit of $ 75 million on f-22 program and f-35 development contract due to lower volume $ 55 million on other programs including f-35 lrip  due to lower profit rate adjustments in 2011 compared to 2010.
 adjustments not related to volume  including net profit rate adjustments approximately $ 90 million higher in 2011 compared to 2010.
 backlog backlog decreased in 2012 compared to 2011 due to lower orders on f-35 contracts and c-130 programs offset by higher orders on f-16 programs.
 backlog increased in 2011 compared to 2010 due to higher orders on f-35 contracts partially offset by higher sales volume on c-130 programs.
 expect aeronautics experience mid single digit percentage range decline in net sales for 2013 compared to 2012.
 decrease in net sales from decline in f-16 and c-130j aircraft deliveries expected offset by increase in net sales volume on f-35 lrip contracts.
 operating profit projected to decrease at high single digit percentage range from 2012 levels due to expected decline in net sales changes in aircraft mix slight decline in operating margins between years.
 information systems & global solutions is&gs business segment provides management services  integrated information technology solutions  advanced technology systems expertise broad applications for civil , defense  intelligence  other government customers.
 is&gs has portfolio of many smaller contracts compared.
is&gs impacted by downturn in federal information technology budgets impact continuing resolution effective on october 1 , 2012 start of u. s.
 government 2019s fiscal year.
 is&gs 2019 operating results included ( in millions ) :.
 2012 compared to 2011 is&gs 2019 net sales for 2012 decreased $ 535 million  or 6% ( 6 % )  compared to 2011.
 decrease attributable to lower net sales of $ 485 million due to substantial completion of programs during 2011 ( primarily jtrs ; odin u. k.
 census ) $ 255 million due to lower volume on other programs ( primarily hanford ; warfighter information network-tactical win-t ) command , control  battle management communications c2bmc transportation worker identification credential ( twic.
 partially offsetting decreases were higher net sales of $ 140 million from qtc  acquired early in fourth quarter 2011 $ 65 million from increased activity on other programs primarily federal cyber security programs persistent threat detection system ( ptds ) operational support.
 is&gs 2019 operating profit for 2012 decreased $ 66 million  or 8% ( 8 % )  compared to 2011.
 decrease attributable to lower operating profit of $ 50 million due to odin contract completion in 2011 ; $ 25 million due to increase in reserves for performance issues related international airborne surveillance system in 2012 approximately $ 20 million due to lower volume on programs ( primarily c2bmc win-t ).
 partially offsetting decreases was increase in operating profit due to higher risk retirements of approximately $ 15 million from twic program $ 10 million due to increased activity on other programs  primarily federal cyber security programs ptds operational support.
 operating profit for jtrs program comparable decrease in volume offset by decrease in reserves.
adjustments not related to volume including net profit booking rate adjustments other matters approximately $ 20 million higher 2012 compared to 2011.

| 2012           | 2011           | 2010
------------------- | -------------- | -------------- | --------------
net sales           | $ 8846         | $ 9381         | $ 9921
operating profit    | 808            | 874            | 814
operating margins   | 9.1% ( 9.1 % ) | 9.3% ( 9.3 % ) | 8.2% ( 8.2 % )
backlog at year-end | 8700           | 9300           | 9700


following table sets forth information concerning increases in total number of our aap stores during past five years : beginning stores new stores ( 1 ) stores closed ending stores ( 1 ) does not include stores opened as relocations of previously existing stores within same market area or substantial renovations of stores.
 our store-based information systems , designed to improve efficiency operations enhance customer service , are comprised of proprietary pos system and electronic parts catalog , or epc , system.
 information maintained by our pos system used to formulate pricing  marketing merchandising strategies replenish inventory accurately rapidly.
 our pos system integrated with epc system enables store team members to assist customers in parts selection and ordering based on year , make model engine type of vehicles.
 centrally-based epc data management system enables us to reduce time needed to exchange data with vendors catalog deliver updated  accurate parts information.
 epc system contains enhanced search engines user-friendly navigation tools enhance team members' ability to look up needed parts additional products customer automotive repair project.
 if hard-to-find part or accessory not available at stores , epc system can determine whether part is carried in-stock through hub or pdq ae networks or can be ordered directly from vendors.
 available parts and accessories are then ordered electronically from another store  hub  pdq ae or directly from vendor with immediate confirmation of price , availability estimated delivery time.
 we support store operations with additional proprietary systems customer driven labor scheduling capabilities.
 our store-level inventory management system provides real-time inventory tracking at store level.
store-level system , store team members can check quantity of on-hand inventory for sku  adjust stock levels for select items for store specific events  automatically process returns and defective merchandise designate skus for cycle counts track merchandise transfers.
 stores use radio frequency hand-held devices to ensure accuracy of inventory.
 standard operating procedure , sop system is web-based  electronic data management system provides team members instant access to standard operating procedures through comprehensive on-line search function.
 all systems tightly integrated provide real-time  comprehensive information to store personnel resulting in improved customer service levels team member productivity in-stock availability.
 purchasing for virtually all merchandise for stores is handled by merchandise teams located in three primary locations : 2022 store support center in roanoke , virginia ; 2022 regional office in minneapolis , minnesota ; 2022 global sourcing office in taipei , taiwan.
 roanoke team responsible for parts categories minnesota team responsible for accessories , oil and chemicals.
 global sourcing team works closely with both teams.
 in fiscal 2011  purchased merchandise from approximately 500 vendors  no single vendor accounting for more than 9% ( 9 % ) of purchases.
 purchasing strategy involves negotiating agreements with most vendors to purchase merchandise over specified period of time with other terms  including pricing , payment terms volume.
 merchandising team developed strong vendor relationships in industry collaborative with vendor partners utilizes category management process manage mix of product offerings to meet customer demand.
 believe this process  develops customer-focused business plan for each merchandise category global sourcing operation critical to improving comparable store sales , gross margin inventory productivity.
following table sets forth information concerning increases in total number of our aap stores during past five years : beginning stores new stores ( 1 ) stores closed ending stores ( 1 ) does not include stores opened as relocations of previously existing stores within same market area or substantial renovations of stores.
 our store-based information systems , designed to improve efficiency operations enhance customer service , are comprised of proprietary pos system and electronic parts catalog , or epc , system.
 information maintained by our pos system used to formulate pricing  marketing merchandising strategies replenish inventory accurately rapidly.
 our pos system integrated with epc system enables store team members to assist customers in parts selection and ordering based on year , make model engine type of vehicles.
 centrally-based epc data management system enables us to reduce time needed to exchange data with vendors catalog deliver updated  accurate parts information.
 epc system contains enhanced search engines user-friendly navigation tools enhance team members' ability to look up needed parts additional products customer automotive repair project.
 if hard-to-find part or accessory not available at stores , epc system can determine whether part is carried in-stock through hub or pdq ae networks or can be ordered directly from vendors.
 available parts and accessories are then ordered electronically from another store  hub  pdq ae or directly from vendor with immediate confirmation of price , availability estimated delivery time.
 we support store operations with additional proprietary systems customer driven labor scheduling capabilities.
 our store-level inventory management system provides real-time inventory tracking at store level.
store-level system , store team members can check quantity on-hand inventory for sku  adjust stock levels for select items for store specific events  automatically process returns and defective merchandise designate skus for cycle counts track merchandise transfers.
 stores use radio frequency hand-held devices to ensure accuracy of inventory.
 standard operating procedure , or sop, system is web-based  electronic data management system provides team members instant access to standard operating procedures through comprehensive on-line search function.
 systems tightly integrated provide real-time  comprehensive information to store personnel resulting in improved customer service levels  team member productivity in-stock availability.
 purchasing for virtually all merchandise for stores is handled by merchandise teams located in three primary locations : 2022 store support center in roanoke , virginia ; 2022 regional office in minneapolis , minnesota ; 2022 global sourcing office in taipei , taiwan.
 roanoke team responsible for parts categories minnesota team responsible for accessories , oil and chemicals.
 global sourcing team works closely with both teams.
 in fiscal 2011  purchased merchandise from approximately 500 vendors  no single vendor accounting for more than 9% ( 9 % ) of purchases.
 purchasing strategy involves negotiating agreements with most vendors to purchase merchandise over specified period of time with other terms  including pricing , payment terms volume.
 merchandising team developed strong vendor relationships in industry collaborative with vendor partners utilizes category management process manage mix of product offerings to meet customer demand.
 believe this process  develops customer-focused business plan for each merchandise category global sourcing operation critical to improving comparable store sales , gross margin inventory productivity.

| 2011     | 2010     | 2009       | 2008       | 2007
---------------- | -------- | -------- | ---------- | ---------- | ----------
beginning stores | 3369     | 3264     | 3243       | 3153       | 2995
new stores ( 1 ) | 95       | 110      | 75         | 109        | 175
stores closed    | -4 ( 4 ) | -5 ( 5 ) | -54 ( 54 ) | -19 ( 19 ) | -17 ( 17 )
ending stores    | 3460     | 3369     | 3264       | 3243       | 3153


reserves can be added as expansions permitted funding approved stipulations joint venture agreement satisfied.
 table sets changes in estimated quantities of net proved bitumen reserves for year 2008.
 estimated quantities of proved bitumen reserves ( millions of barrels ) 2008.
 revisions driven by price impact of new royalty regime discussed.
 estimated quantity of net proved bitumen reserves is forward-looking statement based on assumptions including commodity prices  volumes in-place known physical data  recoverability of bitumen  industry economic conditions cash flow from operations other operating considerations.
 assumptions inaccurate actual recoveries could be different than current estimates.
 for discussion of proved bitumen reserves estimation process see item 7.
 management 2019s discussion analysis of financial condition results of operations 2013 critical accounting estimates 2013 estimated net recoverable reserve quantities 2013 proved bitumen reserves.
 operations at aosp not within scope of statement of financial accounting standards ( 201csfas 201d ) no.
 25 , 201csuspension of certain accounting requirements for oil and gas producing companies ( amendment of financial accounting standards board ( 201cfasb 201d ) statement no.
 19 ) , 201d sfas no.
 69 , 201cdisclosures about oil and gas producing activities ( amendment of fasb statements 19 , 25  33 39 )  201d securities and exchange commission ( 201csec 201d ) rule 4-10 of regulation s-x bitumen production and reserves not included in supplementary information on oil and gas producing activities.
 sec issued release amending disclosure requirements effective for annual reports on form 10-k for fiscal years ending on or after december 31 , 2009 see item 7.
management 2019s discussion analysis of financial condition results of operations 2013 accounting standards not yet adopted for additional information.
 prior to acquisition of western , first fully-integrated expansion of existing aosp facilities approved in 2006.
 expansion 1  includes construction of mining extraction facilities at jackpine mine , expansion treatment facilities at muskeg river mine  expansion scotford upgrader development of related infrastructure  anticipated to begin operations in late 2010 or 2011.
 when expansion 1 complete  more than 50000 bpd of net production upgrading capacity in canadian oil sands.
 timing scope of future expansions debottlenecking opportunities on existing operations under review.
 during 2008  alberta government accepted project 2019s application to portion of expansion 1 capital costs form part of muskeg river mine 2019s allowable cost recovery pool.
 due to commodity price declines year  royalties for 2008 were one percent of gross mine revenue.
 commencing january 1, 2009  alberta royalty regime amended royalty rates based on canadian dollar ( 201ccad 201d ) equivalent monthly average west texas intermediate ( 201cwti 201d ) price.
 royalty rates rise from minimum one percent to maximum nine percent under gross revenue method minimum 25 percent to maximum 40 percent under net revenue method.
 under both methods minimum royalty based on wti price of $ 55. 00 cad per barrel and below maximum royalty reached at wti price of $ 120. 00 cad per barrel and above linear increase in royalty between prices.
 above discussion of oil sands mining segment includes forward-looking statements concerning anticipated completion of aosp expansion 1.
factors affect expansion project include transportation logistics  availability of materials labor  unforeseen hazards weather conditions delays in obtaining conditions by necessary government third-party approvals other risks associated with construction projects.
 refining , marketing transportation refining we own operate seven refineries in gulf coast midwest upper great plains regions united states with aggregate refining capacity of 1. 016 million barrels per day ( 201cmmbpd 201d ) of crude oil.
 during 2008

( millions of barrels )              | 2008
------------------------------------ | ----------
beginning of year                    | 421
revisions ( a )                      | -30 ( 30 )
extensions discoveries and additions | 6
production                           | -9 ( 9 )
end of year                          | 388


management 2019s discussion analysis of financial condition results of operations continued ) liquidity capital resources snap-on 2019s growth historically funded by combination of cash operating activities debt financing.
 snap-on believes its cash from operations collections of finance receivables with sources of borrowings available cash on hand sufficient to fund anticipated requirements for scheduled debt payments ( including march 2014 repayment of $ 100. 0 million of 5. 85% ( 5. 85 % ) unsecured notes upon maturity )  payments of interest dividends  new receivables by financial services businesses  capital expenditures working capital restructuring activities funding of pension plans  funding for additional share repurchases acquisitions .
 due to snap-on 2019s credit rating years external funds available at acceptable cost.
 as of close of business on february 7 , 2014  snap-on 2019s long-term debt commercial paper rated  , a3 and p-2 by moody 2019s investors service ; a- and a-2 by standard & poor 2019s ; a- and f2 by fitch ratings.
 snap-on believes current credit arrangements sound strength of balance sheet affords company financial flexibility to respond to internal growth opportunities acquisitions.
 snap-on cannot provide assurances of availability of future financing or terms available or debt ratings may not decrease.
 following discussion focuses on information in consolidated balance sheets.
 as of 2013 year end  working capital ( current assets less current liabilities ) of $ 1080. 8 million increased $ 1. 0 million from $ 1079. 8 million as of 2012 year end.
 following represents company 2019s working capital position as of 2013 and 2012 year end : ( amounts in millions ) 2013 2012.
 cash and cash equivalents of $ 217.6 million as of 2013 year end compared to cash cash equivalents of $ 214. 5 million at 2012 year end.
 $ 3. 1 million net increase in cash and cash equivalents includes impacts of $ 508. 8 million of cash from collections finance receivables ; $ 392. 6 million of cash generated from operations , net of $ 24. 3 million of discretionary cash contributions to company 2019s pension plans ; iii $ 29. 2 million cash proceeds from stock purchase and option plan exercises ; iv ) $ 8. 4 million cash proceeds from sale of property and equipment.
 increases in cash cash equivalents largely offset by funding of $ 651. 3 million of new finance receivables ; dividend payments to shareholders of $ 92. 0 million ; repurchase of 926000 shares of company 2019s common stock for $ 82. 6 million ; funding of $ 70. 6 million of capital expenditures ; v ) may 2013 acquisition of challenger for cash purchase price of $ 38. 2 million.
 of $ 217. 6 million of cash and cash equivalents as of 2013 year end , $ 124. 3 million was held outside of united states.
 snap-on considers these non-u.
 funds as permanently invested in foreign operations to provide adequate working capital satisfy regulatory requirements take advantage of business expansion opportunities ;  company does not expect to repatriate these funds to fund.
 operations or obligations.
 repatriation of cash from certain foreign subsidiaries could have adverse net tax consequences on company should snap-on required to pay record.
 income taxes and foreign withholding taxes on funds previously considered permanently invested.
 alternatively repatriation of cash from certain other foreign subsidiaries could result in favorable net tax consequences for company.
snap-on evaluates opportunities to repatriate foreign cash amounts does not incur additional unfavorable net tax consequences.
 46 snap-on incorporated

( amounts in millions )                                | 2013             | 2012
------------------------------------------------------ | ---------------- | ----------------
cash and cash equivalents                              | $ 217.6          | $ 214.5
trade and other accounts receivable 2013 net           | 531.6            | 497.9
finance receivables 2013 net                           | 374.6            | 323.1
contract receivables 2013 net                          | 68.4             | 62.7
inventories 2013 net                                   | 434.4            | 404.2
other current assets                                   | 169.6            | 166.6
total current assets                                   | 1796.2           | 1669.0
notes payable and current maturities of long-term debt | -113.1 ( 113.1 ) | -5.2 ( 5.2 )
accounts payable                                       | -155.6 ( 155.6 ) | -142.5 ( 142.5 )
other current liabilities                              | -446.7 ( 446.7 ) | -441.5 ( 441.5 )
total current liabilities                              | -715.4 ( 715.4 ) | -589.2 ( 589.2 )
working capital                                        | $ 1080.8         | $ 1079.8


future minimum lease payments for all non-cancelable operating leases at may 31 , 2013 were as follows : fiscal years ending may 31:.
 we are party to claims and lawsuits incidental to our business.
 liabilities , if any , result from outcome of such matters  not expected to have material adverse impact on our financial position , liquidity or results of operations.
 operating taxes define operating taxes as taxes unrelated to income taxes , sales , property , value-add and other business taxes.
 operations we must interpret meaning of operating tax matters in united states and in foreign jurisdictions in we do business.
 taxing authorities in jurisdictions may arrive at different interpretations of tax laws and regulations to operating tax matters could result in payment of additional taxes in jurisdictions.
 as of may 31 , 2013 and 2012  not have liabilities for contingencies related to operating tax items based on management 2019s best estimate given our history with similar matters interpretations of current laws regulations.
 bin/ica agreements entered into sponsorship or depository and processing agreements with certain banks.
 these agreements allow us to use banks 2019 identification numbers  bank identification number ( 201cbin 201d ) for visa transactions and interbank card association ( 201cica 201d ) number for mastercard transactions  to clear credit card transactions through visa mastercard.
 certain such agreements contain financial covenants  in compliance with all such covenants as of may 31 , 2013.
 our canadian visa sponsorship , obtained through canadian financial institution expired in march 2011.
 filed application with office of superintendent of financial institutions canada ( 201cosfi 201d ) for formation of a wholly owned loan company in canada as our financial institution sponsor.
december 12 , 2012 , loan company received restricted order to commence carry on business from osfi enable loan company to become direct visa member at time global payments concludes appropriate bin transfer process with visa.
 in march 2011 , we obtained temporary direct participation in visa canada system , while loan company application pending.
 anticipate bin transfer process with visa completed by september 30 , 2013.

2014                                | $ 11057
----------------------------------- | -------
2015                                | 8985
2016                                | 7378
2017                                | 6700
2018                                | 6164
thereafter                          | 16812
total future minimum lease payments | $ 57096


interest expense.
 interest incurred increased $. 5 with financing lu'an joint venture offset by favorable impacts from currency lower average interest rate on debt portfolio lower average debt balance.
 capitalized interest decreased 31% ( 31 % ) , or $ 6. 0  due to decrease in carrying value of projects under construction driven by lu'an project asia.
 other non-operating income ( expense ) net non income net of $ 66. 7 increased $ 61. 6  due to lower pension settlement losses higher non-service pension income  higher interest income on cash items.
 prior year included pension settlement losses of $ 43. 7 ( $ 33. 2 after-tax or $. 15 per share ) with transfer of pension assets and payment obligations to insurer for u.
 salaried hourly plans.
 in fiscal year 2019 recognized pension settlement loss of $ 5. 0 ( $ 3. 8 after-tax or $. 02 per share ) associated with u. s.
 supplementary pension plan during second quarter.
 net income and net income margin of $ 1809. 4 increased 18% ( 18 % )  or $ 276. 5  due to impacts from u. s.
 tax cuts jobs act  positive pricing  favorable volumes.
 net income margin of 20. 3% ( 20. 3 % ) increased 310 bp.
 adjusted ebitda margin of $ 3468. 0 increased 11% ( 11 % ) , or $ 352. 5 , due to positive pricing higher volumes partially offset by unfavorable currency.
 adjusted ebitda margin of 38. 9% ( 38. 9 % ) increased 400 bp  due to higher volumes positive pricing  india contract modification.
 contributed 80 bp.
effective tax rate equals income tax provision divided by income from continuing operations before taxes.
 effective tax rate was 21. 0% ( 21. 0 % ) and 26. 0% ( 26. 0 % ) in fiscal years 2019 and 2018 .
 current year rate lower due to impacts to enactment of.
 tax cuts and jobs act ( 201ctax act" ) in 2018  changed existing.
 tax laws  including reduction in federal corporate income tax rate from 35% ( 35 % ) to 21% ( 21 % ), deemed repatriation tax on unremitted foreign earnings other changes.
 result of tax act income tax provision reflects discrete net income tax costs of $ 43. 8 and $ 180. 6 in fiscal years 2019 and 2018 .
 current year included cost of $ 56. 2 ( $. 26 per share ) for reversal of benefit recorded in 2018 related to.
 taxation of deemed foreign dividends.
 recorded reversal based on regulations issued in 2019.
 2019 reversal partially offset by favorable adjustment of $ 12. 4 ( $. 06 per share ) recorded as estimates of impacts of tax act.
 adjustment primarily related to foreign tax items including deemed repatriation tax for foreign tax redeterminations.
 current year rate included net gain on exchange of two equity affiliates of $ 29. 1 , not a taxable transaction.
 higher 2018 expense from tax act partially offset by $ 35. 7 tax benefit from restructuring of foreign subsidiaries , $ 9. 1 benefit from foreign audit settlement agreement  and higher excess tax benefits on share-based compensation.
 adjusted effective tax rate was 19. 4% ( 19. 4 % ) and 18. 6% ( 18. 6 % ) in fiscal years 2019 and 2018 .
 lower prior year rate due to $ 9.benefit from foreign audit settlement agreement higher excess tax benefits share-based compensation.

| 2019    | 2018
--------------------------- | ------- | -------
interest incurred           | $ 150.5 | $ 150.0
less : capitalized interest | 13.5    | 19.5
interest expense            | $ 137.0 | $ 130.5


b ) as of december 31 , 2014 total amount authorized under stock repurchase program was $ 5. 5 billion remaining authorization of $ 738 million for future repurchases under common stock repurchase program will expire on february 3 , 2016.
 under stock repurchase program management authorized to purchase shares of company's common stock through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and legal requirements subject to stock price  business and market conditions other factors.
 funding and expect to continue to fund stock repurchases through combination of cash on hand and cash generated by operations.
 in future may choose to fund stock repurchase program under revolving credit facility or future financing transactions.
 no repurchases of series a and b common stock during three months ended december 31 , 2014.
 company first announced stock repurchase program on august 3 , 2010.
 stock performance graph graph sets cumulative total shareholder return on our series a common stock , series b common stock and series c common stock compared with cumulative total return of companies in standard and poor 2019s 500 stock index ( 201cs&p 500 index 201d ) and peer group of companies cbs corporation class b common stock scripps network interactive . time warner  inc. twenty-first century fox ,.
 class a common stock viacom  inc.
 class b common stock walt disney company.
 graph assumes $ 100 originally invested on december 31 , 2009 in each of our series a common stock , series b common stock and series c common stock , s&p 500 index  and stock of peer group companies including reinvestment of dividends for years ended december 31 , 2010 , 2011 , 2012 , 2013 and 2014.
december 31 , december 31 , december 31.
 equity compensation plan information information regarding securities authorized for issuance under equity compensation plans set forth in our definitive proxy statement for our 2015 annual meeting of stockholders under caption 201csecurities authorized for issuance under equity compensation plans , 201d incorporated herein by reference.

| december 312009 | december 312010 | december 312011 | december 312012 | december 312013 | december 312014
---------- | --------------- | --------------- | --------------- | --------------- | --------------- | ---------------
disca      | $ 100.00        | $ 135.96        | $ 133.58        | $ 206.98        | $ 294.82        | $ 224.65
discb      | $ 100.00        | $ 138.79        | $ 133.61        | $ 200.95        | $ 290.40        | $ 233.86
disck      | $ 100.00        | $ 138.35        | $ 142.16        | $ 220.59        | $ 316.21        | $ 254.30
s&p 500    | $ 100.00        | $ 112.78        | $ 112.78        | $ 127.90        | $ 165.76        | $ 184.64
peer group | $ 100.00        | $ 118.40        | $ 135.18        | $ 182.38        | $ 291.88        | $ 319.28


2015 and 2014 was $ 1. 5 billion and $ 1. 3 billion.
 aggregate notional amount of outstanding foreign currency hedges at december 31 , 2015 and 2014 was $ 4. 1 billion and $ 804 million.
 derivative instruments not material impact on net earnings and comprehensive income during 2015 , 2014 and 2013.
 substantially all derivatives are designated for hedge accounting.
 see note 16 for more information on fair value measurements related to derivative instruments.
 recent accounting pronouncements 2013 in may 2014  fasb issued new standard will change recognize revenue expand disclosure requirements for revenue arrangements.
 on july 9, 2015  fasb approved one-year deferral of effective date of standard to 2018 for public companies with option permit companies to adopt standard in 2017.
 early adoption prior to 2017 not permitted.
 new standard may be adopted retrospectively or on modified retrospective basis new standard applied to new contracts and existing contracts with remaining performance obligations as of effective date with cumulative catch-up adjustment recorded to beginning retained earnings at effective date for existing contracts with remaining performance obligations.
 in fasb contemplating making additional changes to certain elements of new standard.
 currently evaluating methods of adoption allowed by new standard and effect standard expected on consolidated financial statements and related disclosures.
 new standard will supersede all existing revenue guidance affecting us could impact revenue and cost recognition on thousands of contracts across all business segments in addition to business processes and information technology systems.
 evaluation of effect of new standard will extend over future periods.
 in september 2015 , fasb issued new standard simplifies accounting for adjustments made to preliminary amounts recognized in business combination by eliminating requirement to retrospectively account for adjustments.
adjustments recognized in period in adjustments determined including effect on earnings of amounts recorded in previous periods if accounting completed at acquisition date.
 adopted standard on january 1 , 2016 will prospectively apply standard to business combination adjustments identified after date of adoption.
 in november 2015  fasb issued new standard simplifies presentation of deferred income taxes requires deferred tax assets and liabilities  related valuation allowance be classified as noncurrent in consolidated balance sheets.
 standard effective january 1, 2017 , with early adoption permitted.
 standard may be applied prospectively from date of adoption or retrospectively to all prior periods.
 currently evaluating when adopt standard and method of adoption.
 note 2 2013 earnings per share weighted average number of shares outstanding used to compute earnings per common share were as follows ( in millions ) :.
 compute basic and diluted earnings per common share by dividing net earnings by respective weighted average number of common shares outstanding for periods presented.
 calculation of diluted earnings per common share includes dilutive effects for assumed vesting of outstanding restricted stock units and exercise of outstanding stock options based on treasury stock method.
 computation of diluted earnings per common share excluded 2. 4 million stock options for year ended december 31 , 2013 because inclusion would have been anti-dilutive primarily due to exercise prices exceeding average market prices of common stock during respective periods.
 no anti-dilutive equity awards for years ended december 31 , 2015 and 2014.

| 2015  | 2014  | 2013
------------------------------------------------------------------- | ----- | ----- | -----
weighted average common shares outstanding for basic computations   | 310.3 | 316.8 | 320.9
weighted average dilutive effect of equity awards                   | 4.4   | 5.6   | 5.6
weighted average common shares outstanding for diluted computations | 314.7 | 322.4 | 326.5