table of contents ( 2 ) includes capitalized lease obligations of $ 3. 2 million and $ 0. 1 million as of december 31 , 2015 and 2014  respectively included in other liabilities on consolidated balance sheet.
 ( 3 ) ebitda defined as consolidated net income before interest expense  income tax expense  depreciation and amortization.
 adjusted ebitda  measure defined in our credit agreements means ebitda adjusted for certain items described in table below.
 included reconciliation of ebitda and adjusted ebitda in table below.
 both ebitda and adjusted ebitda are considered non-gaap financial measures.
 non-gaap financial measure is numerical measure of company 2019s performance  financial position or cash flows excludes or includes amounts not normally included or excluded in most directly comparable measure calculated presented in accordance with gaap.
 non-gaap measures used by us may differ from similar measures used by other companies similar terms used identify measures.
 believe ebitda and adjusted ebitda provide helpful information operating performance cash flows including ability to meet future debt service  capital expenditures working capital requirements.
 adjusted ebitda primary measure used in certain key covenants and definitions in credit agreement governing our senior secured term loan facility ( 201cterm loan 201d ) including excess cash flow payment provision  restricted payment covenant net leverage ratio.
 these covenants and definitions are material components of term loan used in determining interest rate term loan  ability to make certain investments incur additional debt  make restricted payments  dividends share repurchases  required to make additional principal prepayments on term loan beyond quarterly amortization payments.
 for further details regarding term loan  see note 8 ( long-term debt ) to accompanying consolidated financial statements.
unaudited table reconciliations of net income to ebitda and ebitda to adjusted ebitda for periods presented:.
 net loss on extinguishment of long-term debt ) 24. 3 90. 7 64. 0 17. 2 118. 9 loss income from equity investments ) 10. 1 ( 2. 2 ) ( 0. 6 ) ( 0. 3 ) ( 0. 1 ) acquisition and integration expenses c ) 10. 2 2014 gain on remeasurement of equity investment d ) ( 98. 1 ) 2014 other adjustments e ) 6. 9 9. 2 82. 7 23. 9 21. 6 adjusted ebitda f ) $ 1018. 5 $ 907. 0 $ 808. 5 $ 766. 6 $ 717. 3 during years ended december 31, 2015 2014 2013 2012  2011  recorded net losses on extinguishments of long-term debt.
 losses difference between amount paid upon extinguishment including call premiums expenses to debt holders agents and net carrying amount of extinguished debt  adjusted for unamortized deferred financing costs.
 ( b ) represents our share of net income/loss from equity investments.
 35% ( 35 % ) share of kelway 2019s net loss includes 35% ( 35 % ) share of expense related to equity awards granted by to kelway coworkers in july 2015 prior to acquisition.
 c ) includes expenses related to acquisition of kelway.
 d ) represents gain from remeasurement of previously held 35% ( 35 % ) equity investment to fair value upon completion of acquisition of kelway.

( in millions )                                    | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
-------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income                                         | $ 403.1                        | $ 244.9                        | $ 132.8                        | $ 119.0                        | $ 17.1
depreciation and amortization                      | 227.4                          | 207.9                          | 208.2                          | 210.2                          | 204.9
income tax expense                                 | 243.9                          | 142.8                          | 62.7                           | 67.1                           | 11.2
interest expense net                               | 159.5                          | 197.3                          | 250.1                          | 307.4                          | 324.2
ebitda                                             | 1033.9                         | 792.9                          | 653.8                          | 703.7                          | 557.4
non-cash equity-based compensation                 | 31.2                           | 16.4                           | 8.6                            | 22.1                           | 19.5
net loss on extinguishment of long-term debt ( a ) | 24.3                           | 90.7                           | 64.0                           | 17.2                           | 118.9
loss ( income ) from equity investments ( b )      | 10.1                           | -2.2 ( 2.2 )                   | -0.6 ( 0.6 )                   | -0.3 ( 0.3 )                   | -0.1 ( 0.1 )
acquisition and integration expenses ( c )         | 10.2                           | 2014                           | 2014                           | 2014                           | 2014
gain on remeasurement of equity investment ( d )   | -98.1 ( 98.1 )                 | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( e )                            | 6.9                            | 9.2                            | 82.7                           | 23.9                           | 21.6
adjusted ebitda ( f )                              | $ 1018.5                       | $ 907.0                        | $ 808.5                        | $ 766.6                        | $ 717.3


part ii  item 8 schlumberger limited subsidiaries shares common stock stated in millions ) issued treasury shares outstanding.
 see notes consolidated financial statements

| issued | in treasury  | shares outstanding
------------------------------------------------ | ------ | ------------ | ------------------
balance january 1 2007                           | 1334   | -156 ( 156 ) | 1178
shares sold to optionees less shares exchanged   | 2013   | 14           | 14
shares issued under employee stock purchase plan | 2013   | 2            | 2
stock repurchase program                         | 2013   | -16 ( 16 )   | -16 ( 16 )
issued on conversions of debentures              | 2013   | 18           | 18
balance december 31 2007                         | 1334   | -138 ( 138 ) | 1196
shares sold to optionees less shares exchanged   | 2013   | 5            | 5
shares issued under employee stock purchase plan | 2013   | 2            | 2
stock repurchase program                         | 2013   | -21 ( 21 )   | -21 ( 21 )
issued on conversions of debentures              | 2013   | 12           | 12
balance december 31 2008                         | 1334   | -140 ( 140 ) | 1194
shares sold to optionees less shares exchanged   | 2013   | 4            | 4
vesting of restricted stock                      | 2013   | 1            | 1
shares issued under employee stock purchase plan | 2013   | 4            | 4
stock repurchase program                         | 2013   | -8 ( 8 )     | -8 ( 8 )
balance december 31 2009                         | 1334   | -139 ( 139 ) | 1195


comparison of cumulative return among lkq corporation , nasdaq stock market ( u. s. ) index peer group.
 this stock performance information is "furnished" not deemed "soliciting material" or subject to rule 14a , not deemed "filed" for purposes section 18 securities exchange act of 1934 or subject to liabilities of section , not deemed incorporated by reference in any filing under securities act of 1933 or securities exchange act of 1934 , made before or after date of this report irrespective of general incorporation by reference language in filing , except extent it specifically incorporates information by reference.
 information about our common stock issued under equity compensation plans as of december 31, 2016 included in part iii , item 12 of annual report on form 10-k incorporated herein by reference.

| 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
--------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
lkq corporation | $ 100      | $ 140      | $ 219      | $ 187      | $ 197      | $ 204
s&p 500 index   | $ 100      | $ 113      | $ 147      | $ 164      | $ 163      | $ 178
peer group      | $ 100      | $ 111      | $ 140      | $ 177      | $ 188      | $ 217


n o t e s t o t e c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 2013 ( continued ) ace limited and subsidiaries excluded from adjusted weighted-average shares outstanding and assumed conversions is impact of securities anti-dilutive during respective years.
 for years ended december 31 , 2010 , 2009  2008  potential anti-dilutive share conversions were 256868 shares , 1230881 shares  and 638401 shares  respectively.
 19.
 related party transactions ace foundation 2013 bermuda is unconsolidated not-for-profit organization to fund charitable causes in bermuda.
 trustees of ace management.
 company maintains non-interest bear- ing demand note receivable from ace foundation 2013 bermuda balance was $ 30 million and $ 31 million  at december 31 , 2010 and 2009 .
 receivable included in other assets in consolidated balance sheets.
 borrower used related proceeds to finance investments in bermuda real estate some rented to ace employees at rates established by independent professional real estate appraisers.
 borrower uses income from investments to repay note and fund charitable activities.
 company reports demand note at lower of principal value or fair value of assets held by borrower to repay loan including real estate properties.
 20.
 statutory financial information company 2019s insurance and reinsurance subsidiaries subject to insurance laws and regulations in jurisdictions they operate.
 regulations include restrictions limit amount of dividends or other distributions loans or cash advances available to shareholders without prior approval of insurance regulatory authorities.
no statutory restrictions on payment of dividends from retained earnings by bermuda subsidiaries as minimum statutory capital and surplus requirements satisfied by share capital and additional paid-in capital of bermuda subsidiaries.
 company 2019s u. s.
 subsidiaries file financial statements in with statutory accounting practices permitted by insurance regulators.
 statutory accounting differs from gaap in reporting of certain reinsurance contracts  investments subsidiaries acquis- ition expenses fixed assets deferred income taxes other items.
 statutory capital and surplus of u. s.
 subsidiaries met regulatory requirements for 2010  2009 2008.
 amount dividends available to be paid in 2011  without prior approval from state insurance departments totals $ 850 million.
 table presents combined statutory capital surplus statutory net income of bermuda and u. s.
 subsidiaries at for years ended december 31 , 2010  2009  2008.
 permitted by restructuring in company 2019s u. s.
 subsidiaries discount certain a&e liabilities  increased statutory capital and surplus by approximately $ 206 million , $ 215 million  and $ 211 million at december 31, 2010  2009  2008 .
 company 2019s international subsidiaries prepare statutory financial statements based on local laws and regulations.
 some jurisdictions impose complex regulatory requirements on insurance companies other jurisdictions impose fewer requirements.
 in some countries company must obtain licenses governmental authorities to conduct local insurance business.
 these licenses may be subject to reserves minimum capital and solvency tests.
 jurisdictions may impose fines  censure criminal sanctions for violation of regulatory requirements.

( in millions of u.s . dollars ) | bermuda subsidiaries 2010 | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | bermuda subsidiaries 2010 | bermuda subsidiaries 2009 | 2008
-------------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------
statutory capital and surplus    | $ 11798                   | $ 9164                    | $ 6205                    | $ 6266                    | $ 5885                    | $ 5368
statutory net income             | $ 2430                    | $ 2369                    | $ 2196                    | $ 1047                    | $ 904                     | $ 818


reconciliation of beginning and ending unrecognized tax benefits , for periods indicated , is as follows:.
 entire amount unrecognized tax benefits would affect effective tax rate if recognized.
 in 2010 , company favorably settled 2003 and 2004 irs audit.
 company recorded net overall tax benefit including accrued interest of $ 25920 thousand.
 company to down $ 12356 thousand fin 48 reserve established regarding 2003 and 2004 irs audit.
 company no longer subject to.
 federal , state and local or foreign income tax examinations by tax authorities for years before 2007.
 company recognizes accrued interest related to net unrecognized tax benefits and penalties in income taxes.
 during years ended december 31, 2010, 2009 and 2008, company accrued and recognized net expense ( benefit ) of approximately $ ( 9938 ) thousand , $ 1563 thousand and $ 2446 thousand , respectively , in interest and penalties.
 included within 2010 net expense ( benefit ) of $ ( 9938 ) thousand is $ ( 10591 ) thousand of accrued interest related to 2003 and 2004 irs audit.
 company not aware of any positions for possible that total amounts unrecognized tax benefits will significantly increase or decrease within twelve months of reporting date.
 for.
 income tax purposes company has foreign tax credit carryforwards of $ 55026 thousand begin to expire in 2014.
 for.
 tax company has $ 41693 thousand of alternative minimum tax credits that do not expire.
 management believes more likely than not company will realize benefits of net deferred tax assets and no valuation allowance recorded for periods presented.
tax benefits $ 629 thousand and $ 1714 thousand related to share-based compensation deductions for stock options exercised in 2010 2009 included within additional paid-in capital shareholders 2019 equity section consolidated balance sheets.

( dollars in thousands )                                     | 2010             | 2009             | 2008
------------------------------------------------------------ | ---------------- | ---------------- | -------
balance at january 1                                         | $ 29010          | $ 34366          | $ 29132
additions based on tax positions related to the current year | 7119             | 6997             | 5234
additions for tax positions of prior years                   | -                | -                | -
reductions for tax positions of prior years                  | -                | -                | -
settlements with taxing authorities                          | -12356 ( 12356 ) | -12353 ( 12353 ) | -
lapses of applicable statutes of limitations                 | -                | -                | -
balance at december 31                                       | $ 23773          | $ 29010          | $ 34366


republic services , inc.
 notes to consolidated financial statements 2014 ( continued ) 16.
 financial instruments fuel hedges entered multiple swap agreements cash flow hedges to mitigate exposure related to changes in diesel fuel prices.
 swaps qualified for effective hedges of changes in prices forecasted diesel fuel purchases ( fuel hedges ).
 table summarizes outstanding fuel hedges as of december 31 , 2016 : year gallons hedged weighted average contract price per gallon.
 if national.
 on-highway average price for gallon diesel fuel published by department of energy exceeds contract price per gallon receive difference between average price and contract price ( multiplied by notional gallons ) from counterparty.
 if average price less than contract price per gallon pay difference to counterparty.
 fair values of fuel hedges determined using standard option valuation models with assumptions about commodity prices based underlying markets ( level 2 fair value hierarchy ).
 aggregate fair values of outstanding fuel hedges as of december 31 , 2016 and 2015 were current liabilities of $ 2. 7 million and $ 37. 8 million  recorded in other accrued liabilities in consolidated balance sheets.
 ineffective portions of changes in fair values resulted in gain of $ 0. 8 million for year ended december 31 , 2016  loss of $ 0. 4 million and $ 0. 5 million for years ended december 31 , 2015 2014  recorded in other income  net in consolidated statements of income.
 total gain ( loss ) recognized in other comprehensive income ( loss ) for fuel hedges ( effective portion ) was $ 20. 7 million , $ ( 2. 0 ) million and $ ( 24. 2 ) million , for years ended december 31 , 2016 , 2015 2014 .
classify cash inflows outflows from fuel hedges within operating activities in unaudited consolidated statements of cash flows.
 recycling commodity hedges revenue from sale of recycled commodities is primarily from sales of old corrugated containers old newsprint.
 use derivative instruments swaps costless collars designated as cash flow hedges to manage exposure to changes in prices of these commodities.
 during 2016  entered into multiple agreements related to forecasted occ sales.
 agreements qualified for designated as effective hedges of changes in prices of certain forecasted recycling commodity sales ( commodity hedges ).
 entered into costless collar agreements on forecasted sales of occ.
 agreements involve combining purchased put option giving right to sell occ at established floor strike price with written call option obligating us to deliver occ at established cap strike price.
 puts and calls have same settlement dates net settled in cash on such dates same terms to expiration.
 contemporaneous combination of options resulted in no net premium for us represents costless collars.
 under agreements  make or receive no payments as long as settlement price between floor price and cap price ; if settlement price above cap , pay counterparty amount equal to excess of settlement price over cap times monthly volumes hedged.
 if settlement price below floor , counterparty will pay us deficit of settlement price below floor times monthly volumes hedged.
 objective of agreements is to reduce variability of cash flows for forecasted sales of occ between two designated strike prices.

year | gallons hedged | weighted average contractprice per gallon
---- | -------------- | -----------------------------------------
2017 | 12000000       | $ 2.92
2018 | 3000000        | 2.61


notes to consolidated financial statements gains losses on financial assets liabilities accounted for at fair value under option table presents gains losses recognized firm electing to apply fair value option to certain financial assets liabilities.
 gains losses included in 201cmarket making 201d 201cother principal transactions. table includes gains losses on embedded derivative component of hybrid financial instruments in unsecured short-term borrowings unsecured long-term borrowings.
 gains losses would have recognized under other.
 if firm not elected to account for entire hybrid instrument at fair value.
 amounts table exclude contractual interest included in 201cinterest income 201d 201cinterest expense  for all instruments other than hybrid financial instruments.
 see note 23 for further information about interest income interest expense.
 gains/ ( losses ) on financial assets liabilities at fair value under fair value option year ended december in millions 2012 2011 2010 receivables from customers counterparties 1 $ 190 $ 97 $ ( 97 ).
.
 consists of gains/ ( losses ) on certain reinsurance contracts certain transfers accounted for as receivables purchases.
.
 includes gains/ ( losses ) on embedded derivative component of hybrid financial instruments of $ ( 814 ) million , $ 2. 01 billion , $ ( 1. 49 ) billion as of december 2012 , 2011 2010  respectively.
 3.
 includes gains/ ( losses ) on embedded derivative component of hybrid financial instruments of $ ( 887 ) million , $ 1. 80 billion $ ( 1. 32 ) billion as of december 2012 , 2011 2010  respectively.
.
 consists of gains/ ( losses ) on certain insurance contracts.
.
consists of gains/ losses ) on resale repurchase agreements  securities borrowed loaned deposits.
 excluding gains losses on instruments accounted for under fair value option described above, 201cmarket making 201d 201cother principal transactions 201d represent gains losses on 201cfinancial instruments owned at fair value 201d 201cfinancial instruments sold not yet purchased at fair value. 201d 150 goldman sachs 2012 annual report

in millions                                   | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2012 | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2011 | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2010
--------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
receivables from customers andcounterparties1 | $ 190                                                                                | $ 97                                                                                | $ -97 ( 97 )
other secured financings                      | -190 ( 190 )                                                                                | -63 ( 63 )                                                                                | -227 ( 227 )
unsecured short-term borrowings2              | -973 ( 973 )                                                                                | 2149                                                                                | -1455 ( 1455 )
unsecured long-term borrowings3               | -1523 ( 1523 )                                                                                | 2336                                                                                | -1169 ( 1169 )
other liabilities and accrued expenses4       | -1486 ( 1486 )                                                                                | -911 ( 911 )                                                                                | 50
other5                                        | -81 ( 81 )                                                                                | 90                                                                                | -10 ( 10 )
total                                         | $ -4063 ( 4063 )                                                                                | $ 3698                                                                                | $ -2908 ( 2908 )


facility maturity date october 2016.
 maturity date company's revolving credit facility extended to october 2018 facility increased to $ 900 million from $ 600 million.
 amended credit agreement consists of term c-2 loan facility term c-3 loan facility $ 900 million revolving credit facility.
 net deferred financing costs : net financing costs ( in $ millions ).
 ( 1 ) relates to issuance of 4. 625% ( 4. 625 % ) notes.
 ( 2 ) relates to $ 400 million prepayment of term c loan facility with proceeds from 4. 625% ( 4. 625 % ) notes.
 ( 3 ) relates to september 2013 amendment to celanese us existing senior secured credit facilities to reduce interest rates certain borrowings creating term c-2 loan facility due 2016.
 ( 4 ) includes $ 6 million to issuance of 3. 250% ( 3. 250 % ) notes $ 4 million related to september 24, 2014 amendment to celanese us existing senior secured credit facilities.
 ( 5 ) includes $ 4 million related to 6. 625% ( 6. 625 % ) notes redemption $ 1 million to term c-2 loan facility conversion.
 of december 31 , 2014 margin for borrowings under term c-2 loan facility was 2. 0% ( 2. 0 % ) above euro interbank offered rate ( "euribor margin for borrowings under term c-3 loan facility 2. 25% ( 2. 25 % ) above libor ( for us dollars ) 2. 25% ( 2. 25 % ) above euribor ( for euros ).
 of december 31 , 2014 margin for borrowings under revolving credit facility was 1. 5% ( 1. 5 % ) above libor.
 margin for borrowings revolving credit facility subject to increase or decrease based on changes in corporate credit ratings of celanese us.
term loan borrowings under amended credit agreement subject to amortization at 1% ( 1 % ) of initial principal amount per annum payable quarterly.
 company pays quarterly commitment fees on unused portion of revolving credit facility of 0. 25% ( 0. 25 % ) per annum.
 amended credit agreement guaranteed by celanese and certain domestic subsidiaries of celanese us secured by lien on all assets of celanese us guarantors subject to certain agreed exceptions ( including for certain real property shares of foreign subsidiaries ) pursuant to guarantee and collateral agreement dated april 2 as condition to borrowing funds or requesting letters of credit issued under revolving credit facility company's first lien senior secured leverage ratio ( calculated as of last day of most recent fiscal quarter for financial statements delivered under revolving facility ) cannot exceed threshold as specified below.
 company's first lien senior secured leverage ratio must be maintained at or below threshold while amounts outstanding under revolving credit facility.

| net deferred financing costs ( in $ millions )
---------------------------------------------------------- | ----------------------------------------------
as of december 31 2011                                     | 28
financing costs deferred ( 1 )                             | 8
accelerated amortization due to refinancing activity ( 2 ) | -1 ( 1 )
amortization                                               | -5 ( 5 )
as of december 31 2012                                     | 30
financing costs deferred ( 3 )                             | 2
accelerated amortization due to refinancing activity       | 2014
amortization                                               | -5 ( 5 )
as of december 31 2013                                     | 27
financing costs deferred ( 4 )                             | 10
accelerated amortization due to refinancing activity ( 5 ) | -5 ( 5 )
amortization                                               | -5 ( 5 )
as of december 31 2014                                     | 27


american tower corporation subsidiaries notes consolidated financial statements company expects unrecognized tax benefits to change over next 12 months if tax matters settle with applicable taxing jurisdiction or if statute of limitations lapses.
 impact of changes to recorded uncertain tax positions could range from zero to $ 10. 8 million.
 reconciliation of beginning and ending unrecognized tax benefits for years ended december 31 , ( in thousands ) :.
 during years ended december 31 , 2016 , 2015 2014  statute of limitations on certain unrecognized tax benefits lapsed certain positions settled resulted in decrease of $ 3. 2 million , $ 3. 5 million $ 5. 3 million , in liability for uncertain tax benefits reduced income tax provision.
 company recorded penalties and tax-related interest expense to tax provision of $ 9. 2 million , $ 3. 2 million and $ 6. 5 million for years ended december 31 , 2016 , 2015 2014 ,.
 due to expiration of statute of limitations in certain jurisdictions company reduced liability for penalties and income tax-related interest expense related to uncertain tax positions during years ended december 31 , 2016 , 2015 and 2014 by $ 3. 4 million , $ 3. 1 million and $ 9. 9 million , respectively.
 as of december 31 , 2016 and 2015  total accrued income tax-related interest and penalties included in consolidated balance sheets were $ 24. 3 million and $ 20. 2 million , respectively.
 company has filed for prior taxable years  for taxable year ended december 31 , 2016 will file numerous consolidated and separate income tax returns  including.
 federal and state tax returns foreign tax returns.
 company subject to examination in u.
various state and foreign jurisdictions for certain tax years.
 result of company 2019s ability to carryforward federal , state foreign nols  applicable tax years remain open to examination years after loss carryforwards used or expired.
 company regularly assesses likelihood of additional assessments in tax jurisdictions examinations.
 company believes adequate provisions made for income taxes for all periods through december 31 , 2016.
 13.
 stock-based compensation summary of stock-based compensation plans 2014the company maintains equity incentive plans provide for grant of stock-based awards to directors  officers and employees.
 2007 equity incentive plan ( 201c2007 plan 201d ) provides for grant of non-qualified and incentive stock options restricted stock units , restricted stock and other stock-based awards.
 exercise prices in non-qualified incentive stock options not less than fair value of underlying common stock on date of grant.
 equity awards vest ratably  over four years for rsus and stock options and three years for psus.
 stock options expire 10 years from date of grant.
 as of december 31 , 2016  company had ability to grant stock-based awards with aggregate of 9. 5 million shares of common stock under 2007 plan.
 company maintains employee stock purchase plan ( 201cespp 201d ) eligible employees may purchase shares of company 2019s common stock on last day of each bi-annual offering period at discount of lower of closing market value on first or last day of offering period.
 offering periods run from june 1 through november 30 and december 1 through may 31 of each year.
 during years ended december 31 , 2016 , 2015 and 2014  company recorded and capitalized stock-based compensation expenses ( in thousands ) :

| 2016           | 2015           | 2014
-------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
balance at january 1                                                                   | $ 28114        | $ 31947        | $ 32545
additions based on tax positions related to the current year                           | 82912          | 5042           | 4187
additions for tax positions of prior years                                             | 2014           | 2014           | 3780
foreign currency                                                                       | -307 ( 307 )   | -5371 ( 5371 ) | -3216 ( 3216 )
reduction as a result of the lapse of statute of limitations and effective settlements | -3168 ( 3168 ) | -3504 ( 3504 ) | -5349 ( 5349 )
balance at december 31                                                                 | $ 107551       | $ 28114        | $ 31947


sources uses of cash ( in millions ) summary cash flows for each period follows : years ended in millions ) dec 29  dec 30 dec 31.
 md&a consolidated results analysis 40

years ended ( in millions )                            | dec 292018       | dec 302017       | dec 312016
------------------------------------------------------ | ---------------- | ---------------- | ----------------
net cash provided by operating activities              | $ 29432          | $ 22110          | $ 21808
net cash used for investing activities                 | -11239 ( 11239 ) | -15762 ( 15762 ) | -25817 ( 25817 )
net cash provided by ( used for ) financing activities | -18607 ( 18607 ) | -8475 ( 8475 )   | -5739 ( 5739 )
net increase ( decrease ) in cash and cash equivalents | $ -414 ( 414 )   | $ -2127 ( 2127 ) | $ -9748 ( 9748 )


performance graph graph compares total return  assuming reinvestment of dividends on investment in company  based on performance of company's common stock with total return of standard & poor's 500 composite stock index dow jones united states travel and leisure index for five year period by measuring changes in common stock prices from december 31 , 2012 to december 31 , 2017.
 stock performance graph assumes for value of company's common stock and each index was $ 100 on december 31 , 2012 all dividends were reinvested.
 past performance not indicator of future results.

| 12/12  | 12/13  | 12/14  | 12/15  | 12/16  | 12/17
----------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd . | 100.00 | 142.11 | 251.44 | 313.65 | 260.04 | 385.47
s&p 500                       | 100.00 | 132.39 | 150.51 | 152.59 | 170.84 | 208.14
dow jones us travel & leisure | 100.00 | 145.48 | 169.28 | 179.27 | 192.85 | 238.77


secured financing conducted through citi 2019s broker-dealer subsidiaries to facilitate customer matched-book activity fund portion trading inventory.
 secured financing appears as a liability on citi 2019s consolidated balance sheet ( 201csecurities loaned or sold under agreements to repurchase 201d ).
 as of december 31 , 2010  secured financing was $ 189. 6 billion averaged approximately $ 207 billion during quarter ended december 31 , 2010.
 secured financing at december 31 , 2010 increased by $ 35 billion from $ 154. 3 billion at december 31 , 2009.
 during same period reverse repos and securities borrowing increased by $ 25 billion.
 majority of secured financing collateralized by highly liquid government , government-backed government agency securities.
 collateral comes from citi 2019s trading assets and secured lending  part of citi 2019s client matched-book activity citi borrows lends similar asset types secured basis.
 minority of secured financing collateralized by less liquid collateral  supports citi 2019s trading assets business of secured lending to customers part of citi 2019s client matched-book activity.
 less liquid secured borrowing calibrated by asset quality  tenor counterparty exposure  including sensitive to ratings stresses to increase reliability of funding.
 citi believes potential mitigants available in event of stress on secured financing markets for less liquid collateral.
 citi 2019s significant liquidity resources in non-bank entities as of december 31 , 2010 supplemented by collateralized liquidity transfers between entities provide cushion.
 within matched-book activity secured lending positions  carefully managed in collateral and tenor could be to provide additional liquidity under stress.
citi has excess funding capacity for less liquid collateral with existing counterparties accessed during potential dislocation.
 citi to adjust size of select trading books mitigation.
 at december 31 , 2010 commercial paper outstanding for citigroup 2019s non- bank entities and bank subsidiaries was as follows : in billions of dollars non-bank bank 1 ) citigroup.
 includes $ 15 billion of commercial paper related to vies consolidated effective january 1 , 2010 with adoption of sfas 166/167.
 other short-term borrowings of approximately $ 54 billion ( in secured financing and short-term borrowings table include $ 42. 4 billion of borrowings from banks and other market participants includes borrowings from federal home loan banks.
 a decrease of approximately $ 11 billion compared to year-end 2009.
 average balance of borrowings from banks market participants for quarter ended december 31 , 2010 was approximately $ 43 billion.
 other short-term borrowings include $ 11. 7 billion of broker borrowings at december 31, 2010 averaged approximately $ 13 billion for quarter ended december 31 2010.
 see notes 12 and 19 to consolidated financial statements for further information on citigroup 2019s and affiliates 2019 outstanding long-term debt and short-term borrowings.
 liquidity transfer between entities liquidity transferable within non-bank  subject to regulatory restrictions and standard legal terms.
 non-bank can transfer excess liquidity into citi 2019s bank subsidiaries citibank .
 citigroup 2019s bank subsidiaries  including citibank. can lend to citigroup parent and broker-dealer in accordance with section 23a of federal reserve act.
 as of december 31 , 2010 amount available for lending under section 23a was approximately $ 26. 6 billion provided funds are collateralized appropriately.

in billions of dollars | non-bank | bank   | -1 ( 1 ) | total citigroup
---------------------- | -------- | ------ | -------- | ---------------
commercial paper       | $ 9.7    | $ 15.0 |          | $ 24.7


item 1a.
 risk factors to other information in this report following risk factors should be considered when evaluating investment in our securities.
 if circumstances by individual risk factors materialize  our business , financial condition results of operations could be materially adversely affected trading price of common shares could decline significantly.
 risks to business fluctuations in financial markets could result in investment losses.
 prolonged severe disruptions in overall public debt and equity markets , as occurred during 2008 , could result in significant realized and unrealized losses in our investment portfolio.
 financial markets improved since 2008 , could deteriorate in future.
 could disruption in individual market sectors in energy sector in recent years.
 declines in financial markets could result in significant realized unrealized losses on investments could material adverse impact on our results of operations , equity  business insurer financial strength debt ratings.
 our results could be adversely affected by catastrophic events.
 exposed to unpredictable catastrophic events  including weather-related natural catastrophes acts of terrorism.
 material reduction in operating results by one or more catastrophes could inhibit ability to pay dividends or to meet interest and principal payment obligations.
 illustration during past five calendar years pre-tax catastrophe losses , net of reinsurance , were as follows:.
 losses from future catastrophic events could exceed our projections.
 we use projections of possible losses from future catastrophic events varying types magnitudes as strategic underwriting tool.
 use these loss projections to estimate potential catastrophe losses in certain geographic areas decide on placement of retrocessional coverage or other actions to limit extent of potential losses in given geographic area.
loss projections are approximations reliant on mix of quantitative and qualitative processes actual losses may exceed projections by material amount resulting in material adverse effect on financial condition and results of operations.

calendar year:          | pre-tax catastrophe losses
----------------------- | --------------------------
( dollars in millions ) |
2017                    | $ 1472.6
2016                    | 301.2
2015                    | 53.8
2014                    | 56.3
2013                    | 194.0


kendal vroman , 39 mr.
 vroman served our managing director , commodity products , otc services & information products since february 2010.
.
 vroman previously served managing director chief corporate development officer from 2008 to 2010.
.
 vroman joined us in 2001 since held positions of increasing responsibility including recently managing director, corporate development managing director  information and technology services.
 scot.
 warren , 47 mr.
 warren served managing director, equity index products index services since february 2010.
.
 warren previously served managing director  equity products since 2007.
 prior.
 warren worked for goldman sachs as president  manager trading and business analysis team.
.
 warren managed equity option execution clearing businesses for abn amro in chicago senior consultant for arthur andersen & co.
 for financial services firms.
 financial information about geographic areas business cme group does not track revenues based upon geographic location.
 we do  track trading volume generated outside of traditional.
 trading hours through international telecommunication hubs.
 customers can directly access our exchanges throughout world.
 following table shows percentage of total trading volume on globex electronic trading platform generated during non-u. s.
 hours through international hubs.
 available information our web site is www. cmegroup. com.
 information available on web site does not constitute part of this document.
 we make available on web site annual reports on form 10-k  quarterly reports on form 10-q  current reports on form 8-k amendments to reports as soon as reasonably practicable after we electronically file or furnish such materials to sec.
corporate governance materials  including corporate governance principles director conflict of interest policy  board of directors code of ethics categorical independence standards  employee code of conduct charters for standing committees board found on our web site.
 copies materials available to shareholders free of charge upon written request to shareholder relations and member services  attention ms.
 beth hausoul , cme group inc. 20 south wacker drive , chicago, illinois 60606.

| 2010         | 2009       | 2008
-------------------------------------- | ------------ | ---------- | ------------
trading during non-u.s . hours         | 13% ( 13 % ) | 9% ( 9 % ) | 11% ( 11 % )
trading through telecommunication hubs | 8            | 7          | 8


alcoa and subsidiaries file income tax returns in.
 federal jurisdiction various states foreign jurisdictions.
 with few minor exceptions alcoa no longer subject to income tax examinations by tax authorities for years prior to 2006.
 all.
 tax years prior to 2015 audited by internal revenue service.
 various state foreign jurisdiction tax authorities examining alcoa 2019s income tax returns for tax years through 2014.
 reconciliation of beginning and ending amount of unrecognized tax benefits ( excluding interest and penalties ) follows:.
 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 2015 , 2014  2013 would be approximately 12% ( 12 % ), 4% ( 4 % ) and ( 1 ) % ( % )  of pretax book income ( loss ).
 alcoa not anticipate changes in unrecognized tax benefits material impact on statement of consolidated operations during 2016 ( see other matters in note n for matter for no reserve recognized ).
 alcoa 2019s policy to recognize interest and penalties related to income taxes as component of provision for income taxes on statement of consolidated operations.
 in 2015 , 2014  2013  alcoa recognized $ 8 , $ 1 , $ 2 ,  in interest and penalties.
 due to expiration of statute of limitations , settlements with tax authorities refunded overpayments alcoa also recognized interest income of $ 2 , $ 5 , $ 12 in 2015 , 2014  2013 .
 as of december 31 , 2015 and 2014  amount accrued for payment of interest and penalties was $ 9.
.
receivables sale of receivables programs alcoa has arrangement with three financial institutions to sell certain customer receivables without recourse on revolving basis.
 sale completed through bankruptcy remote special purpose entity  consolidated subsidiary of alcoa.
 arrangement provides for minimum funding $ 200 up to maximum $ 500 for receivables sold.
 on march 30 , 2012  alcoa initially sold $ 304 of customer receivables in exchange for $ 50 cash and $ 254 deferred purchase price.
 alcoa received additional net cash funding of $ 200 for receivables sold ( $ 1258 in draws and $ 1058 in repayments ) since program 2019s inception ( no draws or repayments in 2015 ) including $ 40 ( $ 710 in draws and $ 670 in repayments ) in 2014.
 as of december 31 , 2015 and 2014  deferred purchase price receivable was $ 249 and $ 356  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 result in increase in deferred purchase price receivable.
 net change in deferred purchase price receivable reflected in decrease ( increase ) 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,                                    | 2015     | 2014       | 2013
----------------------------------------------- | -------- | ---------- | --------
balance at beginning of year                    | $ 35     | $ 63       | $ 66
additions for tax positions of the current year | 2        | 2          | 2
additions for tax positions of prior years      | 15       | 5          | 11
reductions for tax positions of prior years     | -2 ( 2 ) | -4 ( 4 )   | -2 ( 2 )
settlements with tax authorities                | -2 ( 2 ) | -29 ( 29 ) | -8 ( 8 )
expiration of the statute of limitations        | -1 ( 1 ) | -          | -2 ( 2 )
foreign currency translation                    | -4 ( 4 ) | -2 ( 2 )   | -4 ( 4 )
balance at end of year                          | $ 43     | $ 35       | $ 63


table sets components of foreign currency translation adjustments for fiscal 2012 , 2011 and 2010 ( in thousands ) :.
 stock repurchase program to designed to return value to stockholders minimize dilution from stock issuances we repurchase shares in open market and enter structured repurchase agreements with third-parties.
 authorization to repurchase shares to cover on-going dilution not subject to expiration.
 repurchase program limited to covering net dilution from stock issuances subject to business conditions and cash flow requirements as determined by board of directors.
 during third quarter of fiscal 2010  board of directors approved amendment to stock repurchase program in april 2007 from non-expiring share-based authority to time-constrained dollar-based authority.
 amendment board directors granted authority to repurchase up to $ 1. 6 billion in common stock through end of fiscal 2012.
 during second quarter of fiscal 2012  exhausted our $ 1. 6 billion authority granted board in fiscal in april 2012  board of directors approved new stock repurchase program granting authority to repurchase up to $ 2. 0 billion in common stock through end of fiscal 2015.
 new stock repurchase program similar to previous $ 1. 6 billion stock repurchase program.
 during fiscal 2012 , 2011 2010  entered into structured repurchase agreements with large financial institutions provided financial institutions with prepayments totaling $ 405. 0 million , $ 695. 0 million and $ 850 million ,.
 of $ 405. 0 million of prepayments during fiscal 2012 , $ 100. 0 million was under new $ 2. 0 billion stock repurchase program remaining $ 305. 0 million was under our previous $ 1. 6 billion authority.
 of $ 850.0 million prepayments during fiscal 2010 , $ 250. 0 million under stock repurchase program prior to program amendment in third quarter of fiscal 2010 remaining $ 600. 0 million under amended $ 1. 6 billion time-constrained dollar-based authority.
 enter into agreements to advantage repurchasing shares at guaranteed discount to volume weighted average price ( 201cvwap 201d ) of our common stock over specified period of time.
 only enter transactions when discount receive higher than foregone return on cash prepayments to financial institutions.
 no explicit commissions or fees on structured repurchases.
 under terms agreements no requirement for financial institutions to return portion of prepayment to us.
 financial institutions agree to deliver shares at monthly intervals during contract term.
 parameters to calculate number of shares deliverable are : total notional amount of contract , number of trading days in contract , number of trading days in interval average vwap of our stock during interval less agreed upon discount.
 during fiscal 2012  repurchased approximately 11. 5 million shares at average price of $ 32. 29 through structured repurchase agreements during fiscal 2012.
 during fiscal 2011 , repurchased approximately 21. 8 million shares at average price of $ 31. 81 through structured repurchase agreements during fiscal 2011.
 during fiscal 2010 , repurchased approximately 31. 2 million shares at average price per share of $ 29. 19 through structured repurchase agreements during fiscal 2009 and fiscal 2010.
 for fiscal 2012 , 2011 and 2010 , prepayments classified as treasury stock on consolidated balance sheets at payment date only shares physically delivered by november 30 , 2012 , december 2 , 2011 and december 3 , 2010 excluded from computation of earnings per share.
november 30, 2012  $ 33. 0 million prepayments remained under agreements.
 december 2 , 2011 december 3 , 2010  no prepayments remained under agreements.
 table contents adobe systems incorporated notes to consolidated financial statements continued )

| 2012           | 2011           | 2010
--------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
beginning balance                                                                       | $ 10580        | $ 7632         | $ 10640
foreign currency translation adjustments                                                | -2225 ( 2225 ) | 5156           | -4144 ( 4144 )
income tax effect relating to translation adjustments forundistributed foreign earnings | 1314           | -2208 ( 2208 ) | 1136
ending balance                                                                          | $ 9669         | $ 10580        | $ 7632


adobe systems incorporated notes to consolidated financial statements thousands except share per share data ) continued note 7.
 restructuring other charges previously announced restructuring programs table depicts activity for restructuring programs through december 3 , 1999 : accrued balance at balance at november 27 total cash december 3 1998 charges payments adjustments 1999.
 as of december 3 , 1999 approximately $ 0. 8 million accrued restructuring costs remain related to company 2019s fiscal 1998 restructuring program.
 balance comprised of $ 0. 3 million severance related charges $ 0. 1 million lease termination costs $ 0. 4 million canceled contracts.
 majority of accrual expected be paid by first quarter of fiscal 2000.
 cash payments for twelve months ended december 3 , 1999 related to fiscal 1998 restructuring were $ 0. 7 million , $ 3. 6 million  $ 0. 4 million for severance related charges lease termination costs canceled contracts costs.
 adjustments related to fiscal 1998 restructuring made during year consisted of $ 0. 4 million estimated lease termination costs $ 0. 3 mil- lion to other charges.
 included in accrual balance as of november 27 , 1998 were lease termination costs related to restructuring programs in fiscal 1994 and 1995.
 cash payments for twelve months ended december 3 , 1999 related to both restructuring programs were $ 1. 5 million.
 third and fourth quarters of fiscal 1999 company recorded adjustments to accrual balance of approximately $ 1. 2 million related to programs.
 adjustment of $ 0. 6 million made in third quarter of fiscal 1999 due to company 2019s success terminating lease agreement earlier than contract term specified.
 $ 0.6 million reduced from restructuring accrual relating to expired lease termination costs for two facilities from merger with frame in fiscal 1995.
 as of december 3, 1999 no accrual balances remain related to aldus and frame mergers.
 other charges during third and fourth quarters of fiscal 1999  company recorded other charges of $ 8. 4 million unusual in nature.
 charges included $ 2. 0 million with cancellation of contract and $ 2. 2 million for accelerated depreciation related to adjustment of useful life of certain assets decisions by management restructuring program.
 company incurred nonrecurring compensation charge totaling $ 2. 6 million for terminated employee incurred consulting fees of $ 1. 6 million to assist in restructuring company 2019s operations.

| accrued balance at november 27 1998 | total charges | cash payments    | adjustments      | accrued balance at december 3 1999
------------------------------------------ | ----------------------------------- | ------------- | ---------------- | ---------------- | ----------------------------------
accrual related to previous restructurings | $ 8867                              | $ 2014        | $ -6221 ( 6221 ) | $ -1874 ( 1874 ) | $ 772


assets held under capital leases recorded at lower of net present value of minimum lease payments or fair value of leased asset at inception of lease.
 amortization expense computed using straight-line method over shorter of estimated useful lives of assets or period of related lease.
 12.
 accounts payable and other current liabilities dec.
 31 , dec.
 31 , millions 2010 2009.
 13.
 financial instruments strategy and risk 2013 may use derivative financial instruments in limited instances for other than trading purposes to managing exposure to fluctuations in interest rates fuel prices.
 not a party to leveraged derivatives by policy do not use derivative financial instruments for speculative purposes.
 derivative financial instruments qualifying for hedge accounting must maintain specified level of effectiveness between hedging instrument and item being hedged at inception and throughout hedged period.
 document nature and relationships between hedging instruments and hedged items at inception risk- management objectives strategies for hedge transactions method of assessing hedge effectiveness.
 changes in fair market value of derivative financial instruments not qualify for hedge accounting charged to earnings.
 may use swaps , collars futures forward contracts to mitigate risk of adverse movements in interest rates fuel prices ; use derivative financial instruments may limit future benefits from favorable interest rate fuel price movements.
 market and credit risk 2013 address market risk related to derivative financial instruments by selecting instruments with value fluctuations correlate with underlying hedged item.
 manage credit risk related to derivative financial instruments minimal by requiring high credit standards for counterparties and periodic settlements.
 at december 31 , 2010 and 2009  not required to provide collateral  nor received collateral  relating to hedging activities.
determination of fair value 2013 determine fair values of derivative financial instrument positions based upon current fair values quoted by recognized dealers or present value expected future cash flows.
 interest rate fair value hedges 2013 manage exposure to fluctuations in interest rates by adjusting proportion of fixed and floating rate debt instruments within debt portfolio over given period.
 manage mix of fixed and floating rate debt through issuance of targeted amounts each as debt matures or require incremental borrowings.
 employ derivatives  primarily swaps , as tools to obtain targeted mix.
 obtain flexibility in managing interest costs and interest rate mix within debt portfolio by evaluating issuance of and managing outstanding callable fixed-rate debt securities.
 swaps allow to convert debt from fixed rates to variable rates hedge risk of changes in debt 2019s fair value attributable to changes in interest rates.
 account for swaps as fair value hedges using short-cut method ; do not record ineffectiveness within consolidated financial statements.

millions                                            | dec . 31 2010 | dec . 31 2009
--------------------------------------------------- | ------------- | -------------
accounts payable                                    | $ 677         | $ 612
dividends and interest                              | 383           | 347
accrued wages and vacation                          | 357           | 339
income and other taxes                              | 337           | 224
accrued casualty costs                              | 325           | 379
equipment rents payable                             | 86            | 89
other                                               | 548           | 480
total accounts payable and other currentliabilities | $ 2713        | $ 2470


total intrinsic value of options exercised (.
 difference between market price at exercise and price paid by employee ) during fiscal 2011 , 2010 and 2009 was $ 96. 5 million , $ 29. 6 million and $ 4. 7 million ,.
 total proceeds received by company from exercise these options during fiscal 2011  2009 was $ 217. 4 million , $ 240. 4 million and $ 15. 1 million ,.
 proceeds from stock option exercises employee stock plans in company 2019s statement of cash flows of $ 217. 2 million , $ 216. 1 million and $ 12. 4 million for fiscal 2011  2010 2009 are net of value of shares surrendered by employees in limited circumstances to satisfy exercise price of options satisfy employee tax obligations upon vesting of restricted stock units with exercise stock options granted to company 2019s employees under equity compensation plans.
 withholding amount based on company 2019s minimum statutory withholding requirement.
 summary of company 2019s restricted stock unit award activity as of october 29 , 2011 and changes during year ended is presented below : restricted outstanding weighted- average grant- date fair value per share.
 as of october 29 , 2011  was $ 88. 6 million of total unrecognized compensation cost related to unvested share-based awards stock options and restricted stock units.
 cost expected to be recognized over period of 1. 3 years.
 total grant-date fair value of shares vested during fiscal 2011 , 2010 and 2009 was approximately $ 49. 6 million , $ 67. 7 million and $ 74. 4 million ,.
 common stock repurchase program company 2019s program in place since august 2004.
 board of directors authorized company to repurchase $ 5 billion of company 2019s common stock under program.
under program , company may repurchase outstanding shares common stock in open market and through privately negotiated transactions.
 unless terminated earlier by resolution company 2019s board of directors , repurchase program will expire when company repurchased all shares authorized under program.
 as of october 29 , 2011 , company had repurchased total approximately 125. 0 million shares common stock for approximately $ 4278. 5 million under program.
 additional $ 721. 5 million remains available for repurchase shares under current authorized program.
 repurchased shares are held as authorized but unissued shares of common stock.
 future common stock repurchases dependent upon factors  including cash available company in united states company 2019s financial performance , outlook liquidity.
 company also repurchases shares in settlement of employee tax withholding obligations due upon vesting of restricted stock units  or in certain limited circumstances to satisfy exercise price of options granted to company 2019s employees under company 2019s equity compensation plans.
 analog devices , inc.
 notes to consolidated financial statements 2014 ( continued )

| restricted stock units outstanding | weighted- average grant- date fair value per share
----------------------------------------------------- | ---------------------------------- | --------------------------------------------------
restricted stock units outstanding at october 30 2010 | 1265                               | $ 28.21
units granted                                         | 898                                | $ 34.93
restrictions lapsed                                   | -33 ( 33 )                         | $ 24.28
units forfeited                                       | -42 ( 42 )                         | $ 31.39
restricted stock units outstanding at october 29 2011 | 2088                               | $ 31.10


other expense , net : company's other expense consists of following:.
 income tax provision : company recorded income tax expense of $ 77. 2 million had income before income taxes of $ 322. 5 million for year ended december 31 , 2013 , representing effective tax rate of 23. 9% ( 23. 9 % ).
 during year ended december 31 , 2012  company recorded income tax expense of $ 90. 1 million had income before income taxes of $ 293. 5 million  effective tax rate of 30. 7% ( 30. 7 % ).
 in december 2013  company received notice from irs joint committee on taxation took no exception to company's tax returns filed for 2009 and 2010.
 $ 11. 0 million tax benefit recognized in company's 2013 financial results as company had settled uncertainty regarding realization of refund claims filed in connection with 2009 and 2010 returns.
. largest jurisdiction where company receives such tax credit availability of research and development credit expired at end of 2011 tax year.
 in january 2013  u. s.
 congress passed legislation reinstated research and development credit retroactive to 2012.
 income tax provision for year ended december 31 , 2013 includes approximately $ 2. 3 million related to reinstated research and development credit for 2012 activity.
 decrease in effective tax rate from prior year primarily due to release of uncertain tax position, reinstatement of u. s.
 research and development credit cash repatriation activities.
 to rate effective tax rates for years ended december 31 , 2013 and 2012 were impacted by lower statutory tax rates in company 2019s foreign jurisdictions , domestic manufacturing deduction and tax benefits associated with merger of company 2019s japan subsidiaries in 2010.
 net income : company 2019s net income for year ended december 31 , 2013 was $ 245.3 million compared net income $ 203. 5 million year ended december 31 , 2012.
 diluted earnings per share $ 2. 58 year ended december 31 , 2013 $ 2. 14 year ended december 31 , 2012.
 weighted average shares computing diluted earnings per share 95. 1 million and 95. 0 million years ended december 31 , 2013 2012  respectively.
 table of contents

( in thousands )             | year ended december 31 , 2013 | year ended december 31 , 2012
---------------------------- | ----------------------------- | -----------------------------
foreign currency losses net  | $ -1115 ( 1115 )              | $ -1401 ( 1401 )
other income ( expense ) net | 69                            | -4 ( 4 )
total other expense net      | $ -1046 ( 1046 )              | $ -1405 ( 1405 )


years ended december 31 , 2013 , 2012  2011  recognized approximately $ 6. 5 million , $ 5. 1 million $ 4. 7 million of compensation expense  respectively for options.
 as of december 31 , 2013  approximately $ 20. 3 million of total unrecognized compensation cost related to unvested stock options expected recognized over average period three years.
 stock-based compensation effective january 1 , 1999  implemented deferred compensation plan covering certain employees  including executives.
 shares issued under deferred plan granted to certain employees including executives vesting annually upon completion service period or meeting established financial performance criteria.
 annual vesting occurs at rates from 15% ( 15 % ) to 35% ( 35 % ) once performance criteria reached.
 summary of restricted stock as of december 31 , 2013 , 2012 2011 charges during years ended presented below.
 weighted average fair value of restricted stock granted during year $ 17386949 $ 7023942 $ 21768084 fair value of restricted stock vested during years ended december 31 , 2013 , 2012 2011 was $ 1. 6 million , $ 22. 4 million $ 4. 3 million , respectively.
 as of december 31 , 2013  $ 17. 8 million of total unrecognized compensation cost related to unvested restricted stock expected to be recognized over average period approximately 2. 7 years.
 for years ended december 31 , 2013 , 2012 2011 , approximately $ 4. 5 million , $ 4. 1 million $ 3. 4 million  capitalized to assets associated with compensation expense related to long-term compensation plans , restricted stock and stock options.
 granted ltip units  include bonus , time-based performance based awards  with fair value of $ 27.1 million , zero and $ 8. 5 million as of 2013 , 2012 2011 , respectively.
 grant date fair value of ltip unit awards calculated in accordance with asc 718.
 third party consultant determined fair value of ltip units to discount from sl green's common stock price.
 discount calculated by considering uncertainty ltip units will reach parity with other common partnership units illiquidity due to transfer restrictions.
 as of december 31 , 2013  $ 5. 0 million of total unrecognized compensation expense related to time-based and performance based awards expected to be recognized over weighted average period of approximately 1. 5 years.
 during years ended december 31 , 2013 , 2012 2011  recorded compensation expense related to bonus , time-based performance based awards of approximately $ 27. 3 million , $ 12. 6 million $ 8. 5 million , respectively.
 2010 notional unit long-term compensation plan in december 2009  compensation committee company's board of directors approved general terms of sl green realty corp.
 2010 notional unit long-term compensation program 2010 long-term compensation plan.
 2010 long-term compensation plan long-term incentive compensation plan award recipients could earn  aggregate from approximately $ 15. 0 million up to approximately $ 75. 0 million of ltip units in operating partnership based on stock price appreciation over three years beginning december 1 , 2009 ; if maximum performance achieved approximately $ 25. 0 million of awards could be earned after second year additional approximately $ 25. 0 million of awards could be earned after third year.
 to achieve maximum performance under 2010 long-term compensation plan  aggregate stock price appreciation during performance period had to equal or exceed 50% ( 50 % ).
compensation committee determined maximum performance achieved at or after beginning each second and third years of performance period for full performance period  366815 ltip units , 385583 ltip units and 327416 ltip units earned under 2010 long-term compensation plan in december 2010 , 2011 and 2012 , respectively.
 in accordance with original terms program , 50% ( 50 % ) ltip units vested on december 17 , 2012 ( accelerated from original january 1 , 2013 vesting date )  25% ( 25 % ) ltip units vested on december 11 , 2013 ( accelerated from original january 1 , 2014 vesting date ) remainder scheduled to vest on january 1 , 2015 based

| 2013           | 2012               | 2011
----------------------------------------------------------------------- | -------------- | ------------------ | --------------
balance at beginning of year                                            | 2804901        | 2912456            | 2728290
granted                                                                 | 192563         | 92729              | 185333
cancelled                                                               | -3267 ( 3267 ) | -200284 ( 200284 ) | -1167 ( 1167 )
balance at end of year                                                  | 2994197        | 2804901            | 2912456
vested during the year                                                  | 21074          | 408800             | 66299
compensation expense recorded                                           | $ 6713155      | $ 6930381          | $ 17365401
weighted average fair value of restricted stock granted during the year | $ 17386949     | $ 7023942          | $ 21768084


adobe systems incorporated notes to consolidated financial statements continued accounting for uncertainty in income taxes during fiscal 2013 and 2012  our aggregate changes in total unrecognized tax benefits summarized as ( in thousands ) :.
 as of november 29 , 2013  combined accrued interest and penalties related to tax positions taken on our tax returns included in non-current income taxes payable was approximately $ 11. 4 million.
 we file income tax returns in u. s.
 federal basis and in many u.
 state and foreign jurisdictions.
 subject to continual examination of income tax returns by irs domestic and foreign tax authorities.
 major tax jurisdictions are u. s. , ireland and california.
 for. earliest fiscal years open for examination are 2005 , 2006 and 2010 .
 we regularly assess likelihood of outcomes from these examinations to determine adequacy of provision for income taxes and reserved for potential adjustments from current examinations.
 believe such estimates to be reasonable ; no assurance that final determination of these examinations will not have adverse effect on operating results and financial position.
 in july 2013  u.
 income tax examination covering fiscal years 2008 and 2009 completed.
 accrued tax and interest related to these years was $ 48. 4 million previously reported in long-term income taxes payable.
 settled tax obligation resulting from this examination with cash and income tax assets totaling $ 41. 2 million  resulting $ 7. 2 million income tax benefit recorded in third quarter of fiscal 2013.
 timing of resolution of income tax examinations uncertain as are amounts and timing of tax payments part of audit settlement process.
 these events could cause large fluctuations in balance sheet classification of current and non-current assets and liabilities.
believe within next 12 months , possible either certain audits conclude or statutes of limitations on certain income tax examination periods expire , or both.
 given uncertainties described above, can determine range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 5 million.
 note 10.
 restructuring fiscal 2011 restructuring plan in fourth quarter of fiscal 2011  initiated restructuring plan of reductions in workforce consolidation of facilities to align resources around digital media and digital marketing strategies.
 during fiscal 2013 continued to implement restructuring activities under plan.
 total costs incurred to date and expected to be incurred for closing redundant facilities are $ 12. 2 million as all facilities under plan exited as of november 29 , 2013.
 other restructuring plans restructuring plans include other adobe plans other plans associated with certain acquisitions substantially complete.
 continue to make cash outlays to settle obligations under these plans, current impact to consolidated financial statements not significant.
 other restructuring plans primarily consist of 2009 restructuring plan , implemented in fourth quarter of fiscal 2009  to align costs connection with fiscal 2010 operating plan.

| 2013             | 2012
---------------------------------------------------------------------------- | ---------------- | ----------------
beginning balance                                                            | $ 160468         | $ 163607
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 20244            | 1038
gross increases in unrecognized tax benefits 2013 current year tax positions | 16777            | 23771
settlements with taxing authorities                                          | -55851 ( 55851 ) | -1754 ( 1754 )
lapse of statute of limitations                                              | -4066 ( 4066 )   | -25387 ( 25387 )
foreign exchange gains and losses                                            | -1474 ( 1474 )   | -807 ( 807 )
ending balance                                                               | $ 136098         | $ 160468


part ii item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities table presents reported quarterly high and low per share sale prices of our class a common stock on new york stock exchange ( nyse ) for years 2005 and 2004.
 on march 9 , 2006  closing price of our class a common stock was $ 29. 83 per share reported on nyse.
 as of march 9 , 2006  had 419677495 outstanding shares of class a common stock 687 registered holders.
 in february 2004  all outstanding shares of class b common stock converted into shares class a common stock one-for-one basis occurrence 201cdodge conversion event 201d defined in charter.
 in february 2004  all outstanding shares of class c common stock converted into shares of class a common stock one-for-one basis.
 in august 2005 amended and restated charter to eliminate class b common stock and class c common stock.
 information under 201csecurities authorized for issuance under equity compensation plans 201d from definitive proxy statement incorporated reference into item 12 of annual report.
 dividends never paid dividend on any class of common stock.
 anticipate may retain future earnings to fund development growth of business.
 indentures governing 7. 50% ( 7. 50 % ) senior notes due 2012 ( 7. 50% 7. 50 % ) and 7. 125% ( 7. 125 % ) senior notes due 2012 7. 125%. 125 % ) may prohibit us from paying dividends to stockholders unless satisfy certain financial covenants.
credit facilities indentures governing our debt securities contain covenants restrict our subsidiaries from making direct or indirect distribution , dividend or other payment on account of their limited liability company interests , partnership interests  capital stock or other equity interests.
 under our credit facilities , borrower subsidiaries may pay cash dividends or make other distributions to us in credit facility only if no default exists created.
 indenture governing of ati 7. 25% ( 7. 25 % ) senior subordinated notes due 2011 ( ati 7. 25% ( 7. 25 % ) notes ) prohibit ati and certain other subsidiaries guaranteed notes ( sister guarantors ) from paying dividends making other payments or distributions to unless certain financial covenants satisfied.
 indentures governing our 7. 50% ( 7. 50 % ) notes and 7. 125% ( 7. 125 % ) notes contain restrictive covenants  prohibit restricted subsidiaries under indentures from paying dividends making other payments or distributions to unless certain financial covenants satisfied.
 for more information about restrictions under credit facilities notes indentures , see note 7 to our consolidated financial statements in this annual report section entitled 201cmanagement 2019s

2005                       | high    | low
-------------------------- | ------- | -------
quarter ended march 31     | $ 19.28 | $ 17.30
quarter ended june 30      | 21.16   | 16.28
quarter ended september 30 | 25.20   | 20.70
quarter ended december 31  | 28.33   | 22.73
2004                       | high    | low
quarter ended march 31     | $ 13.12 | $ 9.89
quarter ended june 30      | 16.00   | 11.13
quarter ended september 30 | 15.85   | 13.10
quarter ended december 31  | 18.75   | 15.19


notes to consolidated financial statements at price equal to 101% ( 101 % ) of principal amount plus accrued and unpaid interest.
 cash proceeds from sale of notes was $ 983 million ( net of discount and issuance costs ).
 discount and issuance costs related to notes totaled $ 17 million amortized to interest expense over respective terms of notes.
 in august 2010  ppg entered three-year credit agreement with banks financial institutions ( 201ccredit agreement 201d ).
 credit agreement provides for $ 1. 2 billion unsecured revolving credit facility.
 credit agreement company terminated 20ac650 million and $ 1 billion revolving credit facilities each set to expire in 2011.
 no outstanding amounts due under revolving facility at times termination.
 company ability to increase size of credit agreement by up to additional $ 300 million subject to receipt of lender commitments and other conditions.
 credit agreement will terminate all amounts outstanding due and payable on august 5 , 2013.
 credit agreement provides loans bear interest at rates based at company 2019s option  on one of two specified base rates plus margin based on certain formulas defined in credit agreement.
 credit agreement contains commitment fee on amount unused commitment credit agreement ranging from 0. 125% ( 0. 125 % ) to 0. 625% ( 0. 625 % ) per annum.
 applicable interest rate and fee vary depending on ratings established by standard & poor 2019s financial services llc and moody 2019s investor service inc.
 for company 2019s non-credit enhanced , long- term , senior , unsecured debt.
 no amounts outstanding under credit agreement at december 31 , 2011 ; available borrowing rate on one month .
 dollar denominated borrowing would have been 1. 05 percent.
credit agreement contains restrictive covenants for facilities its type include with limitations on company 2019s ability to create liens or other encumbrances  enter into sale and leaseback transactions enter consolidations  mergers or transfers of all or its assets.
 credit agreement requires company to maintain ratio of total indebtedness to total capitalization  of 60 percent or less.
 credit agreement contains customary events of default permit lenders to accelerate repayment of loans  including failure to make timely payments agreement or other material indebtedness failure to satisfy covenants credit agreement change in control of company events of bankruptcy and insolvency.
 ppg 2019s non-u. s.
 operations have uncommitted lines of credit totaling $ 679 million of $ 36 million was used as of december 31 , 2011.
 these uncommitted lines of credit are subject to cancellation not subject to commitment fees.
 short-term debt outstanding as of december 31 , 2011 and 2010  was as follows : ( millions ) 2011 2010 other  weighted average 3. 72% ( 3. 72 % ) as of dec.
 31 , 2011 and 3. 39% ( 3. 39 % ) as of december 31 , 2010 33 24 total $ 33 $ 24 ppg is in compliance with restrictive covenants under its various credit agreements , loan agreements and indentures.
 company 2019s revolving credit agreements include financial ratio covenant.
 covenant requires total indebtedness not exceed 60% ( 60 % ) of company 2019s total capitalization excluding portion of accumulated other comprehensive income ( loss ) related to pensions and postretirement benefit adjustments.
as of december 31 , 2011  total indebtedness was 43 percent of company 2019s total capitalization excluding accumulated other comprehensive income ( loss ) related to pensions postretirement benefit adjustments.
 all company 2019s debt agreements contain cross-default provisions.
 provisions default on debt service payment of $ 10 million or more for longer than grace period usually 10 days ) under one agreement may result in default under other agreements.
 none of company 2019s primary debt obligations secured or guaranteed by company 2019s affiliates.
 interest payments in 2011 , 2010 2009 totaled $ 212 million , $ 189 million and $ 201 million  respectively.
 in october 2009  company entered agreement with counterparty to repurchase 1. 2 million shares of company 2019s stock 1. 1 million shares purchased in open market ( 465006 of shares purchased as of december 31, 2009 at weighted average price of $ 56. 66 per share ).
 counterparty held shares until september 2010 when company paid $ 65 million took possession shares.
 in december 2008  company entered agreement with counterparty to repurchase 1. 5 million 44 2011 ppg annual report form 10-k.
 notes to consolidated financial statements at price equal to 101% ( % ) of principal amount plus accrued and unpaid interest.
 cash proceeds from sale of notes was $ 983 million ( net of discount and issuance costs ).
 discount and issuance costs related to notes totaled $ 17 million  will amortized to interest expense over terms of notes.
 in august 2010  ppg entered three-year credit agreement with banks financial institutions ( 201ccredit agreement 201d ).
 credit agreement provides for $ 1. 2 billion unsecured revolving credit facility.
connection with entering into credit agreement , company terminated its 20ac650 million and $ 1 billion revolving credit facilities each set to expire in 2011.
 no outstanding amounts due under either revolving facility at times termination.
 company has ability to increase size of credit agreement by up to additional $ 300 million , subject to receipt of lender commitments and other conditions.
 credit agreement will terminate all amounts outstanding due and payable on august 5 , 2013.
 credit agreement provides loans bear interest at rates based  at company 2019s option , on one of two specified base rates plus margin based on certain formulas defined in credit agreement.
 credit agreement contains commitment fee on amount unused commitment under credit agreement ranging from 0. 125% (. ) to 0. 625% ( 0. 625 % ) per annum.
 applicable interest rate and fee vary depending on ratings established by standard & poor 2019s financial services llc and moody 2019s investor service inc.
 for company 2019s non-credit enhanced , long- term , senior , unsecured debt.
 no amounts outstanding under credit agreement at december 31 , 2011 ; available borrowing rate on one month ,.
 dollar denominated borrowing would have been 1. 05 percent.
 credit agreement contains usual customary restrictive covenants for facilities type include limitations on company 2019s ability to create liens or other encumbrances , to enter into sale and leaseback transactions and to enter into consolidations , mergers or transfers of all or all assets.
 credit agreement requires company to maintain ratio of total indebtedness to total capitalization  credit agreement of 60 percent or less.
credit agreement contains customary events of default permit lenders to accelerate repayment of loans including failure to make timely payments due or other material indebtedness failure to satisfy covenants in credit agreement change in control of company events of bankruptcy and insolvency.
 ppg 2019s non-u. s.
 operations have uncommitted lines of credit totaling $ 679 million of $ 36 million used as of december 31 , 2011.
 these uncommitted lines of credit subject to cancellation not subject to commitment fees.
 short-term debt outstanding as of december 31 , 2011 and 2010 was as follows : ( millions ) 2011 2010 other  weighted average 3. 72% ( 3. 72 % ) as of dec.
 31 , 2011 and 3. 39% ( 3. 39 % ) as of december 31 , 2010 33 24 total $ 33 $ 24 ppg in compliance with restrictive covenants under credit agreements, loan agreements indentures.
 company 2019s revolving credit agreements include financial ratio covenant.
 covenant requires total indebtedness not exceed 60% ( 60 % ) of company 2019s total capitalization excluding accumulated other comprehensive income ( loss ) related to pensions and postretirement benefit adjustments.
 as of december 31 , 2011 total indebtedness was 43 percent of company 2019s total capitalization excluding accumulated other comprehensive income loss ) related to pensions postretirement benefit adjustments.
 all company 2019s debt agreements contain cross-default provisions.
 provisions provide default on debt service payment of $ 10 million or more for longer than grace period usually 10 days ) one agreement may result in event default under other agreements.
 none of company 2019s primary debt obligations are secured or guaranteed by company 2019s affiliates.
interest payments in 2011, 2010 2009 totaled $ 212 million , $ 189 million $ 201 million , respectively.
 in october 2009  company entered agreement with counterparty to repurchase up to 1. 2 million shares of company 2019s stock 1. 1 million shares purchased in open market ( 465006 shares purchased as of december 31 , 2009 at weighted average price of $ 56. 66 per share ).
 counterparty held shares until september 2010 company paid $ 65 million took possession of shares.
 december 2008  company entered agreement with counterparty to repurchase 1. 5 million 44 2011 ppg annual report form 10-k

( millions )                                                                                | 2011 | 2010
------------------------------------------------------------------------------------------------------- | ---- | ----
other weighted average 3.72% ( 3.72 % ) as of dec . 31 2011 and 3.39% ( 3.39 % ) as of december 31 2010 | 33   | 24
total                                                                                | $ 33 | $ 24


stock performance graph graph sets cumulative total shareholder return on our series a , series b 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 of cbs corporation class b common stock  news corporation class a common stock scripps network interactive , inc. time warner , inc.  viacom , inc.
 class b common stock walt disney company.
 graph assumes $ 100 invested on september 18 , 2008 , date our common stock began trading , in each our series a stock series b common stock series c common stock , s&p 500 index , and stock of peer group companies  including reinvestment of dividends  for period september 18 , 2008 through december 31 , 2008 years ended december 31 , 2009 , 2010  2011  2012.
 december 31 , december 31 .
 equity compensation plan information information regarding securities authorized for issuance under equity compensation plans set in our definitive proxy statement for 2013 annual meeting of stockholders under caption 201csecurities authorized for issuance under equity compensation plans , 201d incorporated herein by reference.

| december 312008 | december 312009 | december 312010 | december 312011 | december 312012
---------- | --------------- | --------------- | --------------- | --------------- | ---------------
disca      | $ 102.53        | $ 222.09        | $ 301.96        | $ 296.67        | $ 459.67
discb      | $ 78.53         | $ 162.82        | $ 225.95        | $ 217.56        | $ 327.11
disck      | $ 83.69         | $ 165.75        | $ 229.31        | $ 235.63        | $ 365.63
s&p 500    | $ 74.86         | $ 92.42         | $ 104.24        | $ 104.23        | $ 118.21
peer group | $ 68.79         | $ 100.70        | $ 121.35        | $ 138.19        | $ 190.58


jpmorgan chase & co. /2017 annual report 89 table reflects firm 2019s assessed level of capital allocated to each line of business as of dates indicated.
 line of business equity ( allocated capital ).
 planning and stress testing comprehensive capital analysis review federal reserve requires large bank holding companies , including firm , to submit capital plan annual basis.
 federal reserve uses ccar and dodd-frank act stress test processes to ensure large bhcs have sufficient capital during economic and financial stress  have robust forward-looking capital assessment and planning processes in address each bhc 2019s unique risks to absorb losses under certain stress scenarios.
 through ccar  federal reserve evaluates each bhc 2019s capital adequacy and internal capital adequacy assessment processes ( 201cicaap 201d ) plans to make capital distributions  dividend payments or stock repurchases.
 on june 28 , 2017  federal reserve informed firm it did not object to firm 2019s 2017 capital plan.
 for information on actions taken by firm 2019s board of directors following 2017 ccar results , see capital actions on pages 89-90.
 firm 2019s ccar process integrated into employs same methodologies utilized in firm 2019s icaap process  discussed.
 internal capital adequacy assessment process semiannually firm completes icaap  provides management view of impact of severe unexpected events on earnings , balance sheet positions  reserves and capital.
 firm 2019s icaap integrates stress testing protocols with capital planning.
 process assesses potential impact of alternative economic and business scenarios on firm 2019s earnings and capital.
 economic scenarios  parameters underlying scenarios defined centrally applied uniformly across businesses.
scenarios articulated in macroeconomic factors key drivers of business results ; global market shocks generate short-term severe trading losses idiosyncratic operational risk events.
 scenarios intended to capture stress key vulnerabilities idiosyncratic risks facing firm.
 defining broad scenarios actual events can be worse.
 management considers additional stresses outside scenarios as necessary.
 results reviewed by management audit committee.
 capital actions preferred stock dividends declared were $ 1. 7 billion for year ended december 31 , 2017.
 october 20 , 2017 firm issued $ 1. 3 billion of fixed- to-floating rate non-cumulative preferred stock , series cc  initial dividend rate of 4. 625% ( 4. 625 % ).
 on december 1 , 2017 firm redeemed all $ 1. 3 billion of outstanding 5. 50% ( 5. 50 % ) non-cumulative preferred stock , series o.
 for additional information on firm 2019s preferred stock see note 20.
 trust preferred securities on december 18 , 2017 delaware trusts issued seven series of outstanding trust preferred securities liquidated $ 1. 6 billion of trust preferred and $ 56 million of common securities issued cancelled junior subordinated debentures held by each trust issuer distributed pro rata to holders of corresponding series trust preferred common securities.
 firm redeemed $ 1. 6 billion of trust preferred securities in year ended december 31 , 2016.
 common stock dividends firm 2019s common stock dividend policy reflects jpmorgan chase 2019s earnings outlook  desired dividend payout ratio  capital objectives alternative investment opportunities.
 september 19 , 2017 firm announced board of directors increased quarterly common stock dividend to $ 0. 56 per share  effective with dividend paid on october 31 , 2017.
firm 2019s dividends subject to board of directors 2019 approval quarterly basis.
 for information dividend restrictions  see note 20 and note 25.

( in billions )                       | january 12018 | december 31 , 2017 | december 31 , 2016
------------------------------------- | ------------- | ------------------ | ------------------
consumer & community banking          | $ 51.0        | $ 51.0             | $ 51.0
corporate & investment bank           | 70.0          | 70.0               | 64.0
commercial banking                    | 20.0          | 20.0               | 16.0
asset & wealth management             | 9.0           | 9.0                | 9.0
corporate                             | 79.6          | 79.6               | 88.1
total common stockholders 2019 equity | $ 229.6       | $ 229.6            | $ 228.1


notes receivable in 2014  entered $ 3. 0 million promissory note with privately held company recorded at cost.
 interest rate promissory note is 8. 0% ( 8. 0 % ) per annum payable quarterly.
 all unpaid principal and accrued interest promissory note due and payable earlier of august 26 , 2017  or upon default.
 5.
 commitments contingencies operating leases lease various operating spaces in north america , europe asia australia under non-cancelable operating lease arrangements expire various dates through 2024.
 arrangements require us to pay certain operating expenses  taxes , repairs  insurance contain renewal and escalation clauses.
 recognize rent expense under arrangements on straight-line basis over term of lease.
 as of december 31 , 2015  aggregate future minimum payments under non-cancelable operating leases consist of following ( in thousands ) : years ending december 31.
 rent expense for all operating leases amounted to $ 6. 7 million , $ 3. 3 million and $ 3. 6 million for years ended december 31 , 2015 , 2014 2013  respectively.
 financing obligation 2014build-to-suit lease in august 2012  executed lease for building under construction in santa clara , california headquarters.
 lease term is 120 months commenced august 2013.
 based on terms lease agreement due to involvement in aspects construction financial involvement in structural elements of asset construction  decisions related to tenant improvement costs purchasing insurance not reimbursable by buyer-lessor landlord ) deemed owner of building ( for accounting purposes only ) during construction period.
 continue to maintain involvement in property post construction completion lack transferability of risks and rewards of ownership due to required maintenance of $ 4.0 million letter of credit  ability option to sublease our portion of leased building for fees higher than base rate.
 due to continued involvement in property lack of transferability of risks rewards ownership to landlord post construction we account for building and related improvements as lease financing obligation.
 as of december 31 , 2015 and 2014  recorded assets of $ 53. 4 million  total costs of building and improvements incurred including costs paid by lessor ( legal owner ) and additional improvement costs paid by us corresponding financing obligation of $ 42. 5 million and $ 43. 6 million  respectively.
 as of december 31 , 2015 , $ 1. 3 million and $ 41. 2 million recorded as short-term and long-term financing obligations.
 land lease expense under lease financing obligation included in rent expense above amounted to $ 1. 3 million and $ 1. 2 million for years ended december 31 , 2015 and 2014 .
 no land lease expense for year ended december 31 , 2013.

2016                                | $ 6306
----------------------------------- | -------
2017                                | 6678
2018                                | 6260
2019                                | 5809
2020                                | 5580
thereafter                          | 21450
total minimum future lease payments | $ 52083


entergy corporation subsidiaries management's financial discussion analysis methodology of computing massachusetts state income taxes from legislation passed third quarter 2008  resulted in income tax benefit of approximately $ 18. 8 million.
 factors partially offset by income taxes recorded by entergy power generation , llc  prior to liquidation from redemption payments received investment in entergy nuclear power marketing , llc third quarter 2008  resulted in income tax expense of approximately $ 16. 1 million ; book and tax differences for utility plant items state income taxes at utility operating companies  including flow-through treatment of entergy arkansas write-offs.
 effective income tax rate for 2007 was 30. 7% ( 30. 7 % ).
 reduction in effective income tax rate versus federal statutory rate of 35% ( 35 % ) in 2007 primarily due to reduction in income tax expense due to step-up in tax basis on indian point 2 non-qualified decommissioning trust fund from restructuring trusts reduced deferred taxes trust fund reduced current tax expense ; resolution of tax audit issues 2002-2003 audit cycle ; adjustment to state income taxes for non-utility nuclear reflect effect change in methodology of computing new york state income taxes state taxing authority ; book and tax differences related to allowance for equity funds used during construction ; amortization of investment tax credits.
 factors partially offset by book and tax differences for utility plant items state income taxes at utility operating companies.
 see note 3 to financial statements for reconciliation of federal statutory rate of 35. 0% ( 35. 0 % ) to effective income tax rates  for additional discussion regarding income taxes.
 liquidity capital resources section discusses entergy's capital structure , capital spending plans other uses of capital , sources of capital  cash flow activity in cash flow statement.
capital structure entergy's capitalization balanced between equity and debt  shown in following table.
 decrease in debt to capital percentage from 2008 to 2009 primarily result of increase in shareholders' equity due to increase in retained earnings  offset by repurchases of common stock  decrease in borrowings under entergy corporation's revolving credit facility.
 increase in debt to capital percentage from 2007 to 2008 result of additional borrowings under entergy corporation's revolving credit facility.

| 2009             | 2008             | 2007
---------------------------------------------- | ---------------- | ---------------- | ----------------
net debt to net capital at the end of the year | 53.5% ( 53.5 % ) | 55.6% ( 55.6 % ) | 54.7% ( 54.7 % )
effect of subtracting cash from debt           | 3.8% ( 3.8 % )   | 4.1% ( 4.1 % )   | 2.9% ( 2.9 % )
debt to capital at the end of the year         | 57.3% ( 57.3 % ) | 59.7% ( 59.7 % ) | 57.6% ( 57.6 % )