graph matches cadence design systems  inc. 2019s cumulative 5-year shareholder return on common stock with cumulative returns of s&p 500 index s&p information technology index nasdaq composite index.
 graph assumes value investment in common stock each index including reinvestment dividends was $ 100 on december 28, 2002 tracks through december 29 , 2007.
 comparison of 5 year cumulative total return* among cadence design systems  inc. s&p 500 index nasdaq composite index s&p information technology index 12/29/0712/30/0612/31/051/1/051/3/0412/28/02 cadence design systems  inc.
 nasdaq composite s & p information technology s & p 500 * $ 100 invested on 12/28/02 in stock or 12/31/02 in index-including reinvestment of dividends.
 indexes calculated on month-end basis.
 copyright b7 2007  standard & poor 2019s  division of mcgraw-hill companies .
 all rights reserved.
 www. researchdatagroup. com/s&p.
 stock price performance in graph not indicative of future stock price performance

| 12/28/02 | 1/3/04 | 1/1/05 | 12/31/05 | 12/30/06 | 12/29/07
---------------------------- | -------- | ------ | ------ | -------- | -------- | --------
cadence design systems inc . | 100.00   | 149.92 | 113.38 | 138.92   | 147.04   | 139.82
s & p 500                    | 100.00   | 128.68 | 142.69 | 149.70   | 173.34   | 182.87
nasdaq composite             | 100.00   | 149.75 | 164.64 | 168.60   | 187.83   | 205.22
s & p information technology | 100.00   | 147.23 | 150.99 | 152.49   | 165.32   | 192.28


abiomed , inc.
 subsidiaries notes to consolidated financial statements 2014 continued ) note 11.
 stock award plans stock based compensation continued ) 2000 stock incentive plan  ( 201c2000 plan 201d ) amended adopted by company august 2000.
 2000 plan provides for grants of options to key employees  directors advisors consultants to company subsidiaries as incentive or nonqualified stock options determined by company 2019s board of directors.
 up to 4900000 shares of common stock awarded under 2000 plan exercisable at times subject to terms as board of directors specify time each stock option grant.
 options outstanding under 2000 plan vest 4 years from date of grant options expire ten years from date of grant.
 company has nonqualified stock option plan for non-employee directors ( 201cdirectors 2019 plan 201d ).
 directors 2019 plan  amended adopted in july 1989 provides for grants of options to purchase shares of company 2019s common stock to non-employee directors company.
 up to 400000 shares of common stock awarded under directors 2019 plan.
 options director plan have vesting periods of 1 to 5 years from date of grant options expire ten years from date of grant grant-date fair value company estimates fair value of each stock option granted at grant date using black-scholes option valuation model consistent with provisions of sfas no.
 123 ( r ) , sec sab no.
 107 share-based payment company 2019s prior period pro forma disclosure of net loss  including stock-based compensation ( determined under fair value method as prescribed by sfas no.
 123 ).
 fair value of options granted during fiscal years 2005 , 2006 2007 calculated using weighted average assumptions:.
risk-free interest rate based on united states treasury yield curve effect at time of grant for term consistent with expected life of stock options.
 volatility assumptions calculated based on combination historical volatility of stock and adjustments for factors not reflected in historical volatility indicative of future volatility.
 company consideration estimates of future volatility differ from historical volatility result of product diversification company 2019s acquisition of impella.
 average expected life estimated using simplified method for determining expected term prescribed by sec 2019s staff accounting bulletin no.
 107.
 calculation of fair value of options is net of estimated forfeitures.
 forfeitures estimated based on analysis of actual option forfeitures  adjusted to extent historic forfeitures may not be indicative of forfeitures in future.
 expected dividend yield of zero used in option valuation model  company does not pay cash dividends and not expect to pay cash dividends in foreseeable future.
 weighted average grant-date fair value for options granted during fiscal years 2005 , 2006  2007 was $ 8. 05 , $ 6. 91 , and $ 8. 75 per share , respectively.
 application of sfas no.
 123 ( r ) resulted in expense of $ 5. 8 million , or $ 0. 21 per share for 2007 fiscal year recorded within applicable operating expense company reports option holders 2019 compensation cost in consolidated statements of operations.
 remaining unrecognized stock-based compensation expense for unvested stock option awards at march 31 , 2007 was approximately $ 9. 0 million , net of forfeitures  weighted average time over cost recognized is 1. 9 years.
 sfas no.
 123 ( r ) requires benefits of tax deductions in excess of recognized compensation cost to be reported as financing cash flow  rather than operating cash flow.
company not recognize benefit tax deductions in excess of recognized compensation cost due to net operating loss position change no impact on company 2019s consolidated statement cash flows for twelve months ended march 31 , 2007.
 accounting prior to adoption of sfas no.
 123 ( r ) prior to april 1, 2006 company accounted for stock-based compensation with provisions of apb no.
 25.
 company elected to follow disclosure-only alternative requirements of sfas no.
 123  accounting for stock-based compensation.
 company did not recognize compensation expense for issuance of options with fixed exercise prices equal to

| 2005             | 2006             | 2007
--------------------------------- | ---------------- | ---------------- | ----------------
risk-free interest rate           | 3.87% ( 3.87 % ) | 4.14% ( 4.14 % ) | 4.97% ( 4.97 % )
expected option life ( in years ) | 7.5              | 7.3              | 6.25
expected volatility               | 84% ( 84 % )     | 73% ( 73 % )     | 65% ( 65 % )


cross-border outstandings to countries we business amounted to at least 1% ( 1 % ) of our consolidated total assets were as of december 31 : 2007 2006 2005 ( in millions ).
 total cross-border outstandings in table represented 12% ( 12 % ) , 9% ( 9 % ) and 11% ( 11 % ) of our consolidated total assets as of december 31 , 2007 , 2006 and 2005 .
 no cross- border outstandings to countries totaled between. 75% (. 75 % ) and 1% ( 1 % ) of our consolidated total assets as of december 31 , 2007.
 aggregate cross-border outstandings to countries totaled between. 75% (. 75 % ) and 1% ( 1 % ) of consolidated total assets at december 31, 2006  amounted to $ 1. 05 billion ( canada ) and at december 31 , 2005  amounted to $ 1. 86 billion ( belgium and japan ).
 capital regulatory and economic capital management use key metrics to ensure our actual level of capital commensurate with risk profile in compliance with regulatory requirements sufficient to financial flexibility to future strategic business initiatives.
 regulatory capital objective is to maintain strong capital base provide financial flexibility for business needs funding corporate growth supporting customers 2019 cash management needs provide protection against loss to depositors and creditors.
 strive to maintain optimal level of capital  commensurate with risk profile attractive return to shareholders realized over short and long term while protecting obligations to depositors and creditors satisfying regulatory requirements.
 capital management process focuses on risk exposures  capital position relative to peers , regulatory capital requirements evaluations of major independent credit rating agencies ratings to public debt.
capital committee  with asset and liability committee referred to as 2018 2018alco , 2019 2019 oversees management of regulatory capital  responsible for ensuring capital adequacy with regulatory requirements internal targets expectations of major independent credit rating agencies.
 primary regulator of state street and state street bank for regulatory capital is federal reserve board.
 both state street and state street bank subject to minimum capital requirements established by federal reserve board defined in federal deposit insurance corporation improvement act of 1991.
 state street bank must meet regulatory capital thresholds for 2018 2018well capitalized 2019 2019 for parent company to maintain status as financial holding company.

( in millions )                 | 2007    | 2006   | 2005
------------------------------- | ------- | ------ | -------
united kingdom                  | $ 5951  | $ 5531 | $ 2696
canada                          | 4565    | 2014   | 1463
australia                       | 3567    | 1519   | 1441
netherlands                     | 2014    | 2014   | 992
germany                         | 2944    | 2696   | 4217
total cross-border outstandings | $ 17027 | $ 9746 | $ 10809


realize synergies from consolidating businesses into existing operations  through acquisitions or public-private partnerships allow to reduce capital and expense requirements associated with truck routing  personnel  fleet maintenance inventories back-office administration.
 operating model goal of operating model pillar is to deliver consistent high quality service to all customers through republic way : one way.
 everywhere.
 every day.
 approach of developing standardized processes with rigorous controls tracking allows us to leverage scale deliver durable operational excellence.
 republic way is key to harnessing best of what we do as operators translating across all facets of business.
 key enabler of republic way is organizational structure fosters high performance culture by maintaining 360 degree accountability full profit and loss responsibility with general management supported by functional structure to provide subject matter expertise.
 structure allows us to take advantage of scale by coordinating functionally across all markets empowering local management to respond to unique market dynamics.
 rolled out productivity cost control initiatives to deliver best service possible to customers in efficient environmentally sound way.
 fleet automation approximately 72% ( 72 % ) of residential routes converted to automated single driver trucks.
 by converting residential routes to automated service reduce labor costs improve driver productivity decrease emissions create safer work environment for employees.
 communities using automated vehicles have higher participation rates in recycling programs complementing initiative to expand recycling capabilities.
 fleet conversion to compressed natural gas ( cng ) approximately 16% ( 16 % ) of fleet operates on cng.
 expect to continue gradual fleet conversion to cng  preferred alternative fuel technology as part of ordinary annual fleet replacement process.
 believe gradual fleet conversion is prudent to realize full value of previous fleet investments.
33% ( 33 % ) of replacement vehicle purchases during 2015 were cng vehicles.
 we believe using cng vehicles provides competitive advantage in communities with strict clean emission initiatives protecting environment.
 upfront costs higher using cng reduces fleet operating costs through lower fuel expenses.
 as of december 31 , 2015  we operated 38 cng fueling stations.
 standardized maintenance industry trade publication operate ninth largest vocational fleet in united states.
 as of december 31 , 2015  average fleet age in years by line of business was : approximate number of vehicles approximate average age.
 onefleet standardized vehicle maintenance program enables to use best practices for fleet management  truck care maintenance.
 through standardization of core functions believe can minimize variability

| approximate number of vehicles | approximate average age
-------------------------- | ------------------------------ | -----------------------
residential                | 7200                           | 7
small-container commercial | 4400                           | 7
large-container industrial | 4000                           | 9
total                      | 15600                          | 7.5


notes to consolidated financial statements sumitomo mitsui financial group , inc.
 ( smfg ) provides firm credit loss protection on approved loan commitments ( primarily investment-grade commercial lending commitments ).
 notional amount of loan commitments was $ 29. 24 billion and $ 32. 41 billion as of december 2013 and december 2012 .
 credit loss protection on loan commitments by smfg limited to 95% ( 95 % ) of first loss firm realizes on commitments up to maximum of approximately $ 950 million.
 subject to satisfaction conditions upon firm 2019s request smfg will provide protection for 70% ( % ) of additional losses on commitments up to maximum of $ 1. 13 billion  $ 870 million and $ 300 million of protection provided as of december 2013 and december 2012 .
 firm uses other financial instruments to mitigate credit risks commitments not covered by smfg.
 instruments include credit default swaps reference same or similar underlying instrument or entity or credit swaps reference market index.
 warehouse financing.
 firm provides financing to clients warehouse financial assets.
 arrangements secured by warehoused assets primarily corporate loans and commercial mortgage loans.
 contingent and forward starting resale and securities borrowing agreements/forward starting repurchase secured lending agreements firm enters into resale securities borrowing agreements repurchase secured lending agreements settle at future date generally within three business days.
 firm enters into commitments to provide contingent financing to clients counterparties through resale agreements.
 firm 2019s funding of commitments depends on satisfaction of contractual conditions to resale agreement commitments can expire unused.
 investment commitments firm 2019s investment commitments consist commitments to invest in private equity , real estate other assets directly and through funds firm raises and manages.
commitments include $ 659 million and $ 872 million as of december 2013 and 2012  related to real estate private investments and $ 6. 46 billion and $ 6. 47 billion december 2013 2012  related to corporate and other private investments.
 amounts , $ 5. 48 billion and $ 6. 21 billion as december 2013 2012 relate to commitments to invest in funds managed by firm.
 if commitments called funded at market value on date of investment.
 firm has contractual obligations under long-term noncancelable lease agreements principally for office space expiring through 2069.
 certain agreements subject to periodic escalation provisions for increases in real estate taxes other charges.
 table presents future minimum rental payments net of minimum sublease rentals.
 in millions december 2013.
 rent charged to operating expense was $ 324 million for 2013  $ 374 million for 2012 $ 475 million for 2011.
 operating leases include office space held in excess of current requirements.
 rent expense relating to space held for growth included in 201coccupancy. 201d firm records liability  based on fair value of remaining lease rentals reduced by potential or existing sublease rentals for leases where firm has ceased using space and management concluded firm will not derive future economic benefits.
 costs to terminate lease before end of term recognized measured at fair value on termination.
 contingencies legal proceedings.
 see note 27 for information about legal proceedings including certain mortgage-related matters.
 contingencies.
 multiple areas of focus by regulators governmental agencies others within mortgage market may impact originators  issuers servicers investors.
 significant uncertainty surrounding nature extent of potential exposure for participants in market.
 182 goldman sachs 2013 annual report

in millions       | as of december 2013
----------------- | -------------------
2014              | $ 387
2015              | 340
2016              | 280
2017              | 271
2018              | 222
2019 - thereafter | 1195
total             | $ 2695


management 2019s discussion analysis 128 jpmorgan chase & co. /2010 annual report year ended december 31.
 hedges do not qualify for hedge accounting under u.
.
 lending-related commitments jpmorgan chase uses lending-related financial instruments  commitments guarantees to meet financing needs of customers.
 contractual amount of financial instruments represents maximum possible credit risk should counterpar- ties draw down on commitments or firm fulfills obliga- tion under guarantees should counterparties fail to perform according to terms con- tracts.
 wholesale lending-related commitments were $ 346. 1 billion at december 31 , 2010  compared with $ 347. 2 billion at december 31 , 2009.
 decrease reflected january 1 , 2010 , adoption of accounting guidance.
 excluding effect accounting guidance lending-related commitments would have increased by $ 16. 6 billion.
 in firm 2019s view total contractual amount of wholesale lending-related commitments not representative of firm 2019s actual credit risk exposure or funding requirements.
 determining amount credit risk exposure firm has to wholesale lend- ing-related commitments used basis for allocating credit risk capital commitments firm established a 201cloan-equivalent 201d amount for each commitment ; amount represents portion of unused commitment or other contin- gent exposure expected based on average portfolio histori- cal experience to drawn upon in event default by obligor.
 loan-equivalent amounts of firm 2019s lending- related commitments were $ 189. 9 billion and $ 179. 8 billion as of december 31 , 2010 and 2009 , respectively.
 country exposure firm 2019s wholesale portfolio includes country risk exposures to developed and emerging markets.
firm seeks to diversify country exposures including credit-related lending trading investment activities cross-border or locally funded.
 country exposure under firm 2019s internal risk management ap- proach reported based on country where assets of obligor , counterparty or guarantor located.
 exposure amounts  including resale agreements adjusted for collateral and for credit enhancements (. guarantees letters of credit ) pro vided by third parties ; outstandings supported by guarantor outside country or backed by collateral held outside country assigned to country of enhancement provider.
 effect of credit derivative hedges short credit or equity trading positions taken into consideration.
 total exposure measures include activity with both government and private-sector entities in country.
 firm reports country exposure for regulatory purposes following ffiec guidelines different from firm 2019s internal risk management approach for measuring country expo- sure.
 for additional information on ffiec exposures see cross- border outstandings on page 314 of annual report.
 several european countries  including greece  portugal spain italy ireland  subject to credit deterioration due to weak economic and fiscal situations.
 firm closely monitoring exposures to these five countries.
 aggregate net exposures to these five countries measured under firm 2019s internal approach was less than $ 15. 0 billion at december 31 , 2010  with no country representing majority of exposure.
 sovereign exposure in all five countries represented less than half aggregate net exposure.
 firm believes exposure to these five countries is modest relative to firm 2019s overall risk expo- sures manageable given size and types of exposures to each countries diversification of aggregate expo- sure.
 firm continues to conduct business and support client activity in these countries firm 2019s aggregate net exposures may vary over time.
net exposures may be impacted by changes in market conditions effects of interest rates credit spreads on market valuations.
 as part of ongoing country risk management process firm monitors exposure to emerging market countries utilizes country stress tests to measure manage risk of extreme loss associated with sovereign crisis.
 no common definition of emerging markets  but firm generally includes in definition those countries whose sovereign debt ratings equivalent to 201ca+ 201d or lower.
 table below presents firm 2019s exposure to top 10 emerging markets countries based on internal measure- ment approach.
 selection of countries based solely on firm 2019s largest total exposures by country not represent view of actual or potentially adverse credit conditions.

( in millions )                             | 2010           | 2009             | 2008
------------------------------------------- | -------------- | ---------------- | --------------
hedges of lending-related commitments ( a ) | $ -279 ( 279 ) | $ -3258 ( 3258 ) | $ 2216
cva and hedges of cva ( a )                 | -403 ( 403 )   | 1920             | -2359 ( 2359 )
net gains/ ( losses )                       | $ -682 ( 682 ) | $ -1338 ( 1338 ) | $ -143 ( 143 )


movement in exit cost liabilities for pmi was as follows : ( in millions ).
 cash payments related to exit costs at pmi were $ 232 million , $ 360 million and $ 21 million for years ended december 31 , 2015 , 2014 2013 .
 future cash payments for exit costs expected to be approximately $ 54 million  substantially paid by end of 2017.
 pre-tax asset impairment and exit costs result of : netherlands on april 4, 2014 pmi announced initiation by affiliate  philip morris holland.
 201d of consultations with employee representatives on proposal to discontinue cigarette production at factory in bergen op zoom , netherlands.
 pmh reached agreement with trade unions members on social plan ceased cigarette production on september 1 , 2014.
 during 2014 total pre-tax asset impairment and exit costs of $ 489 million recorded for program in european union segment.
 amount includes employee separation costs of $ 343 million  asset impairment costs of $ 139 million other separation costs of $ 7 million.
 separation program charges pmi recorded other pre-tax separation program charges of $ 68 million , $ 41 million and $ 51 million for years ended december 31, 2015 , 2014 2013 .
 2015 other pre-tax separation program charges related to severance costs for organizational restructuring in european union segment.
 2014 other pre-tax separation program charges related to severance costs for factory closures in australia and canada restructuring of.
 leaf purchasing model.
 2013 pre-tax separation program charges related to restructuring of global and regional functions based in switzerland and australia.
contract termination charges 2013 , pmi recorded exit costs $ 258 million related to termination distribution agreements eastern europe middle east & africa ( due new business model egypt ) asia.
 asset impairment charges 2014  pmi recorded other pre-tax asset impairment charges $ 5 million related factory closure canada.

liability balance january 1 2014   | $ 308
---------------------------------- | ------------
charges net                        | 391
cash spent                         | -360 ( 360 )
currency/other                     | -69 ( 69 )
liability balance december 31 2014 | $ 270
charges net                        | 68
cash spent                         | -232 ( 232 )
currency/other                     | -52 ( 52 )
liability balance december 31 2015 | $ 54


latin america acquisition of grupo financiero uno 2007 citigroup completed acquisition grupo financiero uno gfu ) largest credit card issuer central america affiliates with $ 2. 2 billion assets.
 results gfu included in citigroup 2019s global cards latin america consumer banking businesses from march 5 , 2007 forward.
 acquisition of grupo cuscatl e1n 2007 citigroup completed acquisition subsidiaries grupo cuscatl e1n for $ 1. 51 billion ( $ 755 million cash 14. 2 million shares citigroup common stock ) from corporacion ubc internacional s. a.
 grupo.
 results grupo cuscatl e1n included from may 11, 2007 forward recorded in latin america consumer banking.
 acquisition of bank of overseas chinese 2007 citigroup completed acquisition bank overseas chinese booc taiwan for approximately $ 427 million.
 results booc included in citigroup 2019s asia consumer banking  global cards securities banking businesses from december 1, 2007 forward.
 acquisition of quilter 2007 company completed acquisition quilter u. k.
 wealth advisory firm from morgan stanley.
 quilter 2019s results included in citigroup 2019s smith barney business from march 1 , 2007 forward.
 quilter disposed of as part of sale smith barney to morgan stanley.
 acquisition of egg 2007 citigroup completed acquisition egg banking plc ( egg ) u. k.
 online financial services provider from prudential plc for approximately $ 1. 39 billion.
 results egg included in citigroup 2019s global cards emea consumer banking businesses from may 1 , 2007 forward.
 purchase of 20% ( 20 % ) equity interest in akbank 2007 citigroup completed purchase 20% 20 % ) equity interest in akbank second-largest privately owned bank by assets in turkey for approximately $ 3.1 billion.
 investment accounted for using equity method accounting.
 sabanci holding , 34% ( 34 % ) owner of akbank shares subsidiaries granted citigroup right of first refusal or first offer over sale of akbank shares future.
 subject to certain exceptions including purchases from sabanci holding subsidiaries citigroup agreed not to increase percentage ownership in akbank.
 other items sale of mastercard shares in 2007 company recorded $ 367 million after-tax gain ( $ 581 million pretax ) on sale of approximately 4. 9 million mastercard class b shares received by citigroup part of mastercard initial public offering completed in june 2006.
 gain recorded in following businesses : in millions of dollars pretax after-tax.
 redecard ipo in 2007  citigroup ( 31. 9% ( 31. 9 % ) shareholder in redecard s. only merchant acquiring company for mastercard in brazil ) sold approximately 48. 8 million redecard shares with redecard 2019s initial public offering in brazil.
 following sale shares citigroup retained approximately 23. 9% ( 23. 9 % ) ownership in redecard.
 after-tax gain of approximately $ 469 million ( $ 729 million pretax ) recorded in citigroup 2019s 2007 financial results in global cards business.
 visa restructuring and litigation matters in 2007  visa usa , visa international visa canada merged into visa inc.
 visa.
 result reorganization citigroup recorded $ 534 million ( pretax ) gain on holdings of visa international shares recognized in consumer banking business.
 shares carried on citigroup 2019s balance sheet at new cost basis.
 citigroup recorded $ 306 million ( pretax ) charge related to visa usa 2019s litigation matters recognized in north america consumer banking business.

in millions of dollars | 2007 pretax total | 2007 after-tax total | 2006 pretax total | 2006 after-tax total
---------------------- | ----------------- | -------------------- | ----------------- | --------------------
global cards           | $ 466             | $ 296                | $ 94              | $ 59
consumer banking       | 96                | 59                   | 27                | 18
icg                    | 19                | 12                   | 2                 | 1
total                  | $ 581             | $ 367                | $ 123             | $ 78


kimco realty corporation subsidiaries notes consolidated financial statements continued investment in retail store leases 2014 company has interests in various retail store leases anchor store premises in neighborhood community shopping centers.
 premises sublet to retailers lease stores net lease agreements.
 income from investment in retail store leases during years ended december 31 , 2010, 2009 2008  was approximately $ 1. 6 million , $ 0. 8 million $ 2. 7 million ,.
 amounts represent sublease revenues years december 31  2010  2009 2008  of approximately $ 5. 9 million , $ 5. 2 million $ 7. 1 million  less related expenses of $ 4. 3 million , $ 4. 4 million $ 4. 4 million ,.
 company 2019s future minimum revenues under terms non-cancelable tenant subleases future minimum obligations through remaining terms of retail store leases no new or renegotiated leases for premises for future years are ( in millions ) : 2011 , $ 5. 2 and $ 3. 4 ; 2012 , $ 4. 1 $ 2. 6 ; 2013 , $ 3. 8 $ 2. 3 ; 2014 , $ 2. 9 $ 1. 7 ; 2015 , $ 2. 1 $ 1. 3 , $ 2. 8 $ 1. 6 .
 leveraged lease 2014 june 2002  company acquired 90% ( 90 % ) equity participation interest in existing leveraged lease of 30 properties.
 properties leased under long-term bond-type net lease primary term expires in 2016 lessee certain renewal option rights.
 company 2019s cash equity investment was approximately $ 4. 0 million.
 equity investment reported as net investment in leveraged lease accordance with fasb 2019s lease guidance.
as of december 31 , 2010 , 18 properties sold , proceeds from sales used to pay down mortgage debt by approximately $ 31. 2 million remaining 12 properties encumbered by third-party non-recourse debt of approximately $ 33. 4 million scheduled to fully amortize during primary term of lease from portion of periodic net rents receivable under net lease.
 as equity participant in leveraged lease , company has no recourse obligation for principal or interest payments on debt , collateralized by first mortgage lien on properties and collateral assignment of lease.
 obligation offset against related net rental receivable under lease.
 at december 31 , 2010 and 2009 , company 2019s net investment in leveraged lease consisted of following ( in millions ) :.
 10.
 variable interest entities : consolidated operating properties 2014 included within company 2019s consolidated operating properties at december 31, 2010 are four consolidated entities are vies for company is primary beneficiary.
 all these entities established to own and operate real estate property.
 company 2019s involvement with entities is through majority ownership of properties.
 entities deemed vies primarily based on voting rights of equity investors not proportional to obligation to absorb expected losses or receive expected residual returns of entity and substantially all of entity 2019s activities conducted on behalf of investor which has disproportionately fewer voting rights.
 company determined it was primary beneficiary of these vies as result of its controlling financial interest.
 during 2010 , company sold two consolidated vie 2019s which company was primary beneficiary.

| 2010           | 2009
------------------------------------- | -------------- | --------------
remaining net rentals                 | $ 37.6         | $ 44.1
estimated unguaranteed residual value | 31.7           | 31.7
non-recourse mortgage debt            | -30.1 ( 30.1 ) | -34.5 ( 34.5 )
unearned and deferred income          | -34.2 ( 34.2 ) | -37.0 ( 37.0 )
net investment in leveraged lease     | $ 5.0          | $ 4.3


federal realty investment trust schedule iii summary real estate accumulated depreciation three years ended december 31 2007 reconciliation accumulated depreciation amortization thousands ).

balance december 31 2004                                             | $ 595338
-------------------------------------------------------------------- | ----------------
additions during period 2014depreciation and amortization expense    | 83656
deductions during period 2014disposition and retirements of property | -15244 ( 15244 )
balance december 31 2005                                             | $ 663750
additions during period 2014depreciation and amortization expense    | 89564
deductions during period 2014disposition and retirements of property | -12807 ( 12807 )
balance december 31 2006                                             | $ 740507
additions during period 2014depreciation and amortization expense    | 96454
deductions during period 2014disposition and retirements of property | -80258 ( 80258 )
balance december 31 2007                                             | $ 756703


notes to consolidated financial statements ( dollars in millions except per share amounts ) long-term debt maturing over next five years follows:.
 on march 7 , 2003 , standard & poor's ratings services downgraded company's senior secured credit rating to bb+ with negative outlook from bbb-.
 may 14 , 2003  fitch ratings downgraded company's senior unsecured credit rating to bb+ with negative outlook from bbb-.
 may 9 , 2003  moody's investor services  inc.
 ( "moody's placed company's senior unsecured and subordinated credit ratings on review for possible downgrade from baa3 and ba1 .
 as of march 12 , 2004  company's credit ratings continued on review for possible downgrade.
 since july 2001  company not repurchased common stock in open market.
 in october 2003  company received federal tax refund of approximately $ 90 of carryback of 2002 loss for federal income tax purposes and certain capital losses.
 through december 2002  company paid cash dividends quarterly most recent quarterly dividend paid in december 2002 at rate of $ 0. 095 per share.
 company's board of directors makes determinations regarding payment of dividends.
 company's ability to declare or pay dividends restricted by terms revolving credit facilities.
 company did not declare or pay dividends in 2003.
 in 2004  company expects to pay dividends accruing on series mandatory convertible preferred stock in cash permitted by revolving credit facilities.
 see note 14 for discussion of fair market value of company's long-term debt.
 note 9 : equity offering on december 16 , 2003  company sold 25. 8 million shares of common stock and issued 7.5 million shares of 3- year series mandatory convertible preferred stock ( "preferred stock" ).
 total net proceeds from concurrent offerings approximately $ 693.
 preferred stock carries dividend yield of 5. 375% ( 5. 375 % ).
 on maturity  each share preferred stock will convert subject to adjustment to between 3. 0358 and 3. 7037 shares of common stock depending on then-current market price company's common stock representing conversion premium approximately 22% ( 22 % ) over stock offering price of $ 13. 50 per share.
 under certain circumstances preferred stock may be converted prior to maturity at option of holders or company.
 common and preferred stock issued under company's existing shelf registration statement.
 in january 2004  company used approximately $ 246 of net proceeds from offerings to redeem 1. 80% ( 1. 80 % ) convertible subordinated notes due 2004.
 remaining proceeds used for general corporate purposes and strengthen company's balance sheet and financial condition.
 company pay annual dividends on each share of series mandatory convertible preferred stock in amount of $ 2. 6875.
 dividends cumulative from date of issuance payable on each payment date to extent dividends not restricted under company's credit facilities and assets legally available to pay dividends.
 first dividend payment declared on february 24, 2004 made on march 15 , 2004.

2004                | $ 244.5
------------------- | --------
2005                | $ 523.8
2006                | $ 338.5
2007                | $ 0.9
2008                | $ 0.9
2009 and thereafter | $ 1327.6


as of december 31 , 2012 and 2011 , estimated value of company's uncertain tax positions were liabilities of $ 19 million and $ 6 million  respectively.
 assuming sustainment positions reversal of $ 1 million of accrued would affect company's effective federal income tax rate in future periods.
 accrued interest and penalties with unrecognized tax benefits were $ 2 million and $ 3 million as of december 31 , 2012 and 2011  respectively.
 during 2011  company recorded reduction of $ 10 million to liability for uncertain tax positions to tax periods prior to spin-off for northrop grumman is primary obligor.
 during 2010  northrop grumman reached final settlement with irs and.
.
 congressional joint committee on taxation on irs examination of northrop grumman's tax returns for years 2004 through 2006.
 result settlement company recognized tax benefits of $ 8 million as reduction to provision for income taxes.
 connection settlement company also recorded reduction of $ 10 million to liability for uncertain tax positions including previously accrued interest of $ 2 million.
 following table summarizes tax years currently under examination or open under statute of limitations subject to examination by major tax jurisdictions in company operates:.
 company believes adequately provided for all uncertain tax positions , amounts asserted by taxing authorities could be greater than company's accrued position.
 additional provisions on federal and state income tax related matters could be recorded in future as revised estimates are made or underlying matters settled or resolved.
 company could settle positions with tax authorities for amounts lower than accrued.
company believes possible next 12 months company's liability for uncertain tax positions may decrease by approximately $ 14 million.
 company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense.
 irs conducting examination of northrop grumman's consolidated tax returns  hii was part  for years 2007 through 2009.
 open tax years related to state jurisdictions remain subject to examination.
 as of march 31 , 2011  date of spin-off company's liability for uncertain tax positions was approximately $ 4 million  net of federal benefit related to state income tax positions.
 under separation agreement northrop grumman obligated to reimburse hii for settlement liabilities paid by hii to government authority for tax periods prior to spin-off include state income taxes.
 company recorded reimbursement receivable of approximately $ 4 million  net of federal benefit in other assets related to uncertain tax positions for state income taxes as of date of spin-off.
 deferred income taxes reflect net tax effects of temporary differences between carrying amounts assets and liabilities for financial reporting purposes and income tax purposes.
 such amounts classified in consolidated statements of financial position as current or non-current assets or liabilities based upon classification related assets liabilities.

jurisdiction united states | jurisdiction 2007 | jurisdiction - | 2012
-------------------------- | ----------------- | -------------- | ----
california                 | 2007              | -              | 2012
louisiana                  | 2007              | -              | 2012
mississippi                | 2009              | -              | 2012
virginia                   | 2006              | -              | 2012


bhge 2018 form 10-k | 31 business environment discussion analysis summarizes significant factors affecting our results of operations  financial condition liquidity position for year ended december 31 , 2018 , 2017 2016  read in conjunction with consolidated combined financial statements related notes company.
 we operate in more than 120 countries helping customers find evaluate drill produce transport process hydrocarbon resources.
 revenue predominately generated from sale of products services to major national independent oil natural gas companies worldwide dependent on spending by customers for oil natural gas exploration  field development production.
 spending driven by factors including customers' forecasts of future energy demand supply  access to resources to develop produce oil natural gas  ability to fund capital programs impact of new government regulations expectations for oil and natural gas prices key driver of cash flows.
 oil and natural gas prices oil gas prices summarized in table below as averages of daily closing prices during periods indicated.
 brent oil prices ( $ /bbl ) ( 1 ) $ 71. 34 $ 54. 12 $ 43. 64 wti oil prices ( $ /bbl ) ( 2 ) 65. 23 50. 80 43. 29 natural gas prices ( $ /mmbtu ) ( 3 ) 3. 15 2. 99 2. 52 ( 1 ) energy information administration ( eia ) europe brent spot price per barrel ( 2 ) eia cushing , ok wti ( west texas intermediate ) spot price ( 3 ) eia henry hub natural gas spot price per million british thermal unit 2018 demonstrated volatility of oil and gas market.
 first three quarters of 2018 experienced stability in north american international markets.
 in fourth quarter of 2018 commodity prices dropped nearly 40% ( 40 % ) resulting in increased customer uncertainty.
offshore standpoint  through most 2018  saw multiple large offshore projects reach positive final investment decisions lng market outlook improved 2018 driven by increased demand globally.
 in 2018 first large north american lng positive final investment decision reached.
 outside north america customer spending driven by brent oil prices increased on average throughout year.
 average brent oil prices increased to $ 71. 34/bbl in 2018 from $ 54. 12/bbl in 2017  ranged from low $ 50. 57/bbl in december 2018  to high $ 86. 07/bbl in october 2018.
 for first three quarters of 2018 brent oil prices increased sequentially.
 in fourth quarter brent oil prices declined 39% ( 39 % ) versus end third quarter result of increased supply from u. worries global economic slowdown lower expected production cuts.
 in north america customer spending driven by wti oil prices similar to brent oil prices average increased throughout year.
 average wti oil prices increased to $ 65. 23/bbl in 2018 from $ 50. 80/bbl in 2017  ranged from low $ 44. 48/bbl in december 2018  to high of $ 77. 41/bbl in june 2018.
 in north america natural gas prices measured by henry hub natural gas spot price averaged $ 3. 15/ mmbtu in 2018 6% ( 6 % ) increase over prior year.
 year henry hub natural gas spot prices ranged from high of $ 6. 24/mmbtu in january 2018 to low of $ 2. 49/mmbtu in february 2018.
 according to.
 department of energy ( doe ) working natural gas in storage at end of 2018 was 2705 billion cubic feet ( bcf )  which was 15. 6% ( 15.6 % )  421 bcf  below corresponding week 2017.

| 2018    | 2017    | 2016
------------------------------------- | ------- | ------- | -------
brent oil prices ( $ /bbl ) ( 1 )     | $ 71.34 | $ 54.12 | $ 43.64
wti oil prices ( $ /bbl ) ( 2 )       | 65.23   | 50.80   | 43.29
natural gas prices ( $ /mmbtu ) ( 3 ) | 3.15    | 2.99    | 2.52


credit facilities.
 foreign cash and cash equivalents not expected be key source of liquidity to domestic operations.
 at september 30 , 2019  had approximately $ 2. 9 billion availability under committed credit facilities primarily under revolving credit facility majority matures on july 1 , 2022.
 liquidity may be used for ongoing working capital needs other general corporate purposes including acquisitions  dividends stock repurchases.
 certain restrictive covenants govern maximum availability under credit facilities.
 we test and report compliance with these covenants as required in compliance with all covenants at september 30 , 2019.
 september 30 , 2019 had $ 129. 8 million of outstanding letters of credit not drawn cash and cash equivalents were $ 151. 6 million at september 30, 2019 and $ 636. 8 million at september 30 , 2018.
 used significant portion of cash and cash equivalents on hand at september 30, 2018 in connection with closing of kapstone acquisition.
 primarily all cash and cash equivalents at september 30, 2019 held outside of u.
 at september 30 , 2019 total debt was $ 10063. 4 million , $ 561. 1 million was current.
 at september 30 , 2018 total debt was $ 6415. 2 million , $ 740. 7 million was current.
 increase in debt primarily related to kapstone acquisition.
 cash flow activity.
 net cash operating activities during fiscal 2019 increased $ 379. 0 million from fiscal 2018 primarily due to higher cash earnings $ 340. 3 million net decrease in use of working capital compared to prior year.
 result of retrospective adoption of asu 2016-15 and asu 2016-18 ( discussed in 201cnote 1.
 description business summary accounting policies consolidated financial statements net cash by operating activities for fiscal 2018 reduced by $ 489.7 million cash investing activities increased $ 483. 8 million primarily for change in classification of proceeds for beneficial interests for transferring trade receivables in securitization transactions.
 net cash for investing activities of $ 4579. 6 million in fiscal 2019 consisted of $ 3374. 2 million for cash for purchase of businesses net of cash acquired excluding assumption debt ) related to kapstone acquisition $ 1369. 1 million for capital expenditures partially offset by $ 119. 1 million proceeds from sale of property , plant and equipment related sale atlanta beverage facility $ 33. 2 million proceeds from corporate owned life insurance benefits $ 25. 5 million proceeds from property , plant equipment insurance proceeds related to panama city ,.
 net cash for investing activities of $ 815. 1 million in fiscal 2018 $ 999. 9 million for capital expenditures $ 239. 9 million for cash for purchase of businesses net of cash acquired related to plymouth acquisition schl fcter acquisition  $ 108. 0 million for investment in grupo gondi.
 investments partially offset by $ 461. 6 million of cash receipts on sold trade receivables adoption of asu 2016-15 , $ 24. 0 million proceeds from sale of certain affiliates solid waste management brokerage services business $ 23. 3 million proceeds from sale of property , plant and equipment.
 in fiscal 2019  net cash financing activities of $ 1780. 2 million net increase in debt of $ 2314. 6 million related to kapstone acquisition partially offset by cash dividends paid to stockholders of $ 467. 9 million purchases of common stock of $ 88. 6 million.
 in fiscal 2018  net cash for financing activities of $ 755. 1 million consisted primarily of cash dividends paid to stockholders of $ 440.9 million purchases common stock $ 195. 1 million net repayments of debt $ 120. 1 million.

( in millions )                                        | year ended september 30 , 2019 | year ended september 30 , 2018
------------------------------------------------------ | ------------------------------ | ------------------------------
net cash provided by operating activities              | $ 2310.2                       | $ 1931.2
net cash used for investing activities                 | $ -4579.6 ( 4579.6 )           | $ -815.1 ( 815.1 )
net cash provided by ( used for ) financing activities | $ 1780.2                       | $ -755.1 ( 755.1 )


company endeavors to actively engage with every insured account posing significant potential asbestos exposure to mt.
 mckinley.
 such engagement can take form of pursuing final settlement , negotiation, litigation  or monitoring of claim activity under settlement in place ( 201csip 201d ) agreements.
 sip agreements condition insurer 2019s payment upon actual claim experience of insured may have annual payment caps or other measures to control insurer 2019s payments.
 company 2019s mt.
 mckinley operation currently managing four sip agreements , one was executed prior to acquisition of mt.
 mckinley in 2000.
 company 2019s preference to coverage settlements is to execute settlements for fixed schedule of payments , such settlements eliminate future uncertainty.
 company enhanced classification of insureds by exposure characteristics over time, analysis by insured for those it more exposed or active.
 those insureds identified as less exposed or active are subject to less rigorous , but still active management , with emphasis on monitoring characteristics , may indicate increasing exposure or levels of activity.
 company focuses on enhancement of detailed estimation processes to evaluate potential exposure of policyholders.
 everest re 2019s book of assumed a&e reinsurance concentrated within limited number of contracts and for limited period , from 1974 to 1984.
 book of business concentrated company managing a&e exposures for many years claim staff is familiar with ceding companies generated most of liabilities in past and most likely to generate future liabilities.
 company 2019s claim staff developed familiarity with nature of business written by ceding companies and claims handling and reserving practices of those companies.
 this level of familiarity enhances quality of company 2019s analysis of exposure through those companies.
 company believes it can identify claims unusual exposure , non-products asbestos claims  for concentrated attention.
 in setting reserves for reinsurance liabilities , company relies on claims data supplied and by ceding companies and brokers.
 this furnished information not always timely or accurate can impact accuracy and timeliness company 2019s ultimate loss projections.
 following table summarizes composition of company 2019s total reserves for a&e losses , gross and net of reinsurance , for periods indicated:.
 ( 1 ) additional reserves are case specific reserves established by company in excess of those reported by ceding company , based on company 2019s assessment of covered loss.
 ( some amounts may not reconcile due to rounding. ) additional losses , including those relating to latent injuries and other exposures , yet unrecognized  type or magnitude cannot be foreseen by company or industry , may emerge in future.
 such future emergence could have material adverse effects on company 2019s future financial condition , results of operations and cash flows.

( dollars in millions )                                                           | years ended december 31 , 2012 | years ended december 31 , 2011 | years ended december 31 , 2010
--------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
case reserves reported by ceding companies                                        | $ 138.4                        | $ 145.6                        | $ 135.4
additional case reserves established by the company ( assumed reinsurance ) ( 1 ) | 90.6                           | 102.9                          | 116.1
case reserves established by the company ( direct insurance )                     | 36.7                           | 40.6                           | 38.9
incurred but not reported reserves                                                | 177.1                          | 210.9                          | 264.4
gross reserves                                                                    | 442.8                          | 499.9                          | 554.8
reinsurance receivable                                                            | -17.1 ( 17.1 )                 | -19.8 ( 19.8 )                 | -21.9 ( 21.9 )
net reserves                                                                      | $ 425.7                        | $ 480.2                        | $ 532.9


management 2019s discussion analysis of financial condition results operations 2013 continued ) amounts in millions except per share amounts ) net cash used in investing activities 2012 related to payments for capital expenditures acquisitions offset by net proceeds of $ 94. 8 from sale of remaining holdings in facebook.
 capital expenditures of $ 169. 2 related to computer hardware software leasehold improvements.
 capital expenditures increased in 2012 compared to prior year due to increase in leasehold improvements year.
 payments for acquisitions of $ 145. 5 related to payments for new acquisitions.
 financing activities net cash used financing activities 2013 related to purchase of long-term debt repurchase of common stock payment of dividends.
 redeemed all $ 600. 0 in aggregate principal amount of 10. 00% ( 10. 00 % ) notes.
 repurchased 31. 8 shares of common stock for aggregate cost of $ 481. 8  including fees made dividend payments of $ 126. 0 on common stock.
 net cash financing activities 2012 reflected net proceeds from debt transactions.
 issued $ 300. 0 aggregate principal amount of 2. 25% ( 2. 25 % ) senior notes due 2017 ( 201c2. 25% ( 201c2. 25 % ) notes 201d ) $ 500. 0 principal amount of 3. 75% ( 3. 75 % ) senior notes due 2023 ( 201c3. 75%. 75 % notes 201d ) $ 250. 0 principal amount of 4. 00% ( 4. 00 % ) senior notes due 2022 ( 201c4. 00%. 00 % notes 201d ).
 proceeds from issuance of 4. 00% ( 4. 00 % ) notes applied towards repurchase redemption of $ 399. 6 in aggregate principal amount of 4. 25% ( 4.25 % ) notes.
 offsetting net proceeds from debt transactions was repurchase of 32. 7 shares of common stock for aggregate cost of $ 350. 5 including fees  dividend payments of $ 103. 4 on common stock.
 foreign exchange rate changes effect foreign exchange rate changes on cash and cash equivalents in consolidated statements of cash flows resulted in decrease of $ 94. 1 in 2013.
 decrease primarily result of u. s.
 dollar stronger than several foreign currencies including australian dollar  brazilian real  japanese yen  canadian dollar south african rand as of december 31, 2013 compared to december 31 , 2012.
 effect of foreign exchange rate changes on cash and cash equivalents in consolidated statements cash flows resulted in decrease of $ 6. 2 in 2012.
 decrease result of u. s.
 dollar stronger than foreign currencies  including brazilian real south african rand offset by u. s.
 dollar weaker than other foreign currencies  including australian dollar  british pound euro  as of december 31 , 2012 compared to december 31 , 2011.
 liquidity outlook expect cash flow from operations , cash and cash equivalents to be sufficient to meet anticipated operating requirements minimum for next twelve months.
 committed corporate credit facility uncommitted facilities available to support operating needs.
 maintain disciplined approach to managing liquidity  with flexibility over significant uses of cash including capital expenditures  cash used for new acquisitions  common stock repurchase program common stock dividends.

balance sheet data                              | december 31 , 2013 | december 31 , 2012
----------------------------------------------- | ------------------ | ------------------
cash cash equivalents and marketable securities | $ 1642.1           | $ 2590.8
short-term borrowings                           | $ 179.1            | $ 172.1
current portion of long-term debt               | 353.6              | 216.6
long-term debt                                  | 1129.8             | 2060.8
total debt                                      | $ 1662.5           | $ 2449.5


refineries processed 944 mbpd crude oil 207 mbpd other charge and blend stocks.
 table below sets forth location daily crude oil refining capacity of each refineries as of december 31 , 2008.
 crude oil refining capacity ( thousands of barrels per day ) 2008.
 refineries include crude oil atmospheric and vacuum distillation  fluid catalytic cracking  catalytic reforming  desulfurization sulfur recovery units.
 refineries process wide variety of crude oils produce numerous refined products from transportation fuels reformulated gasolines blend- grade gasolines for blending fuel ethanol ultra-low sulfur diesel fuel to heavy fuel oil asphalt.
 manufacture aromatics , cumene , propane , propylene  sulfur maleic anhydride.
 refineries integrated with via pipelines , terminals barges to maximize operating efficiency.
 transportation links connect refineries allow movement of intermediate products between refineries to optimize operations produce higher margin products utilize processing capacity efficiently.
 garyville , louisiana , refinery located along mississippi river in southeastern louisiana.
 refinery processes heavy sour crude oil into products gasoline , distillates, sulfur , asphalt , propane  polymer grade propylene  isobutane coke.
 in 2006  approved expansion of garyville refinery by 180 mbpd to 436 mbpd  projected cost of $ 3. 35 billion ( excluding capitalized interest ).
 construction commenced early 2007 continuing on schedule.
 estimate as of december 31 , 2008  project approximately 75 percent complete.
 expect to complete expansion in late 2009.
catlettsburg , kentucky , refinery located in northeastern kentucky western bank of big sandy river near confluence with ohio river.
 catlettsburg refinery processes sweet and sour crude oils into products gasoline , asphalt , diesel , jet fuel , petrochemicals , propane  propylene sulfur.
 robinson , illinois , refinery in southeastern illinois town of robinson.
 processes sweet and sour crude oils into products multiple grades gasoline, jet fuel, kerosene  diesel fuel  propane  propylene  sulfur anode-grade coke.
 detroit , michigan , refinery near interstate 75 in southwest detroit.
 processes light sweet heavy sour crude oils  including canadian crude oils , into products gasoline , diesel , asphalt , slurry , propane  chemical grade propylene sulfur.
 2007  approved heavy oil upgrading and expansion project at detroit , michigan  refinery current projected cost of $ 2. 2 billion ( excluding capitalized interest ).
 project enable refinery to process additional heavy sour crude oils including canadian bitumen blends  increase crude oil refining capacity by about 15 percent.
 construction began first half of 2008 expected to complete in mid-2012.
 canton , ohio , refinery approximately 60 miles southeast of cleveland , ohio.
 refinery processes sweet and sour crude oils into products gasoline , diesel fuels , kerosene , propane , sulfur  asphalt , roofing flux  home heating oil no.
6 industrial fuel oil.
 texas city , texas refinery located on texas gulf coast 30 miles south of houston , texas.
 refinery processes sweet crude oil into products gasoline  propane chemical grade propylene slurry  sulfur aromatics.
 st.
 paul park , minnesota , refinery located in st.
 paul park suburb of minneapolis-st.
 paul.
 st.
 paul park refinery processes predominantly canadian crude oils into products gasoline  diesel  jet fuel kerosene asphalt propane propylene sulfur.

( thousands of barrels per day ) | 2008
-------------------------------- | ----
garyville louisiana              | 256
catlettsburg kentucky            | 226
robinson illinois                | 204
detroit michigan                 | 102
canton ohio                      | 78
texas city texas                 | 76
st . paul park minnesota         | 74
total                            | 1016


management 2019s discussion analysis of financial condition results of operations 82 fifth third bancorp to 100 million shares of outstanding common stock in open market or privately negotiated transactions utilize any derivative or similar instrument to affect share repurchase transactions.
 this share repurchase authorization replaced board 2019s previous authorization.
 may 21 , 2013  bancorp entered accelerated share repurchase transaction with counterparty pursuant bancorp purchased 25035519 shares or approximately $ 539 million , of outstanding common stock on may 24 , 2013.
 bancorp repurchased shares common stock part of 100 million share repurchase program previously announced march 19 , 2013.
 settlement of forward contract on october 1 , 2013  bancorp received additional 4270250 shares recorded as adjustment to basis in treasury shares purchased on acquisition date.
 november 13 , 2013  bancorp entered accelerated share repurchase transaction with counterparty pursuant bancorp purchased 8538423 shares  or approximately $ 200 million , of outstanding common stock on november 18 , 2013.
 bancorp repurchased shares common stock part of board approved 100 million share repurchase program previously announced march 19 , 2013.
 bancorp expects settlement of transaction occur on or before february 28 , 2014.
 december 10 , 2013  bancorp entered accelerated share repurchase transaction with counterparty pursuant bancorp purchased 19084195 shares , or approximately $ 456 million , of outstanding common stock on december 13 , 2013.
 bancorp repurchased shares common stock as part of board approved 100 million share repurchase program previously announced march 19 , 2013.
 bancorp expects settlement of transaction occur on or before march 26 , 2014.
january 28 , 2014  bancorp entered accelerated share repurchase transaction with counterparty pursuant bancorp purchased 3950705 shares or approximately $ 99 million  of outstanding common stock on january 31 , 2014.
 bancorp repurchased shares common stock as part of board approved 100 million share repurchase program previously announced march 19 , 2013.
 bancorp expects settlement of transaction occur on or before march 26 , 2014.
 table 61 : share repurchases.
 ( a ) in march 2013  bancorp announced board of directors authorized management to purchase 100 million shares of bancorp 2019s common stock through open market or private transaction.
 authorization not include specific price targets or expiration date.
 share repurchase authorization replaces board 2019s previous authorization approximately 54 million shares remained available for repurchase by bancorp.
 ( b ) excludes 1863097 , 2059003 and 1164254 shares repurchased during 2013 , 2012  2011  in connection with employee compensation plans.
 repurchases not included in calculation for average price paid do not count against maximum number of shares may be repurchased under board of directors 2019 authorization.
 stress tests and ccar frb issued guidelines known as ccar , provide common conservative approach to ensure bhcs , including bancorp  hold adequate capital to maintain ready access to funding continue operations meet obligations to creditors and counterparties continue serve as credit intermediaries even in adverse conditions.
 ccar process requires submission of comprehensive capital plan minimum planning horizon of nine quarters under various economic scenarios.
mandatory elements of capital plan are assessment of expected use and sources of capital over planning horizon , description of all planned capital actions over planning horizon discussion of expected changes to bancorp 2019s business plan likely to impact on capital adequacy or liquidity  detailed description of bancorp 2019s process for assessing capital adequacy and bancorp 2019s capital policy.
 capital plan must reflect revised capital framework frb adopted with implementation basel iii accord , including framework 2019s minimum regulatory capital ratios and transition arrangements.
 frb 2019s review of capital plan will assess comprehensiveness of capital plan  reasonableness of assumptions analysis underlying capital plan.
 frb reviews robustness of capital adequacy process  capital policy bancorp 2019s ability to maintain capital above minimum regulatory capital ratios as transition to basel iii and above basel i tier 1 common ratio of 5 percent under baseline and stressful conditions throughout nine- quarter planning horizon.
 frb issued stress testing rules implement section 165 ( i ) ( 1 ) and ( i ) ( 2 ) of dfa.
 large bhcs , including bancorp , are subject to final stress testing rules.
 rules require supervisory and company-run stress tests  provide forward- information to supervisors to assess institutions have sufficient capital to absorb losses support operations during adverse economic conditions.
 in march of 2013  frb announced had completed 2013 ccar.
 for bhcs proposed capital distributions in plan  frb either objected to plan or provided non- objection frb concurred with proposed 2013 capital distributions.
 frb indicated to bancorp did not object to following proposed capital actions for period beginning april 1 , 2013 and ending march 31 , 2014 : f0b7 increase in quarterly common stock dividend to $ 0.12 per share ; f0b7 repurchase of up $ 750 million in trups subject to determination regulatory capital event replacement with issuance similar amount tier ii-qualifying subordinated debt ; f0b7 conversion of $ 398 million outstanding series g 8. 5% ( 8. 5 % ) convertible preferred stock into approximately 35. 5 million common shares issued to holders.
 if conversion occur bancorp intend to repurchase common shares equivalent to issued conversion up to $ 550 million market value issue $ 550 million in preferred stock;

for the years ended december 31                 | 2013                   | 2012                   | 2011
----------------------------------------------- | ---------------------- | ---------------------- | --------
shares authorized for repurchase at january 1   | 63046682               | 19201518               | 19201518
additional authorizations ( a )                 | 45541057               | 86269178               | -
share repurchases ( b )                         | -65516126 ( 65516126 ) | -42424014 ( 42424014 ) | -
shares authorized for repurchase at december 31 | 43071613               | 63046682               | 19201518
average price paid per share                    | $ 18.80                | $ 14.82                | n/a


stock performance graph not deemed 201cfiled 201d for section 18 exchange act  or incorporated by reference into any filing of quintiles ims holdings , inc.
 under exchange act or securities act  except as expressly set forth by specific reference in such filing.
 graph shows comparison from may 9 , 2013 ( common stock commenced trading on nyse ) through december 31, 2016 of cumulative total return for our common stock , standard & poor 2019s 500 stock index ( 201cs&p 500 201d ) and select peer group.
 peer group consists of cerner corporation , charles river laboratories . dun & bradstreet corporation  equifax inc. icon plc , ihs markit ltd. inc research holdings  laboratory corporation of america holdings  nielsen n. v. parexel international corporation  inc. pra health sciences , inc. thomson reuters corporation and verisk analytics , inc.
 companies in peer group are publicly traded information services , information technology or contract research companies share similar business model characteristics to quintilesims  or provide services to similar customers as quintilesims.
 many companies used by compensation committee for compensation benchmarking.
 graph assumes $ 100 invested in quintilesims , s&p 500 and peer group as of close of market on may 9 , 2013 assumes reinvestments of dividends.
 s&p 500 and peer group included for comparative purposes only.
 not necessarily reflect management 2019s opinion s&p 500 and peer group appropriate measure of relative performance of stock involved not intended to forecast or indicative of possible future performance of our common stock.
 s&p 500 quintilesims peer group.
 item 6.
selected financial data derived consolidated statements of income data for 2016  2015 2014 consolidated balance sheet data as of december 31 , 2016 2015 from audited consolidated financial

| 5/9/2013 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
---------- | -------- | ---------- | ---------- | ---------- | ----------
q          | $ 100    | $ 110      | $ 140      | $ 163      | $ 181
peer group | $ 100    | $ 116      | $ 143      | $ 151      | $ 143
s&p 500    | $ 100    | $ 114      | $ 127      | $ 126      | $ 138


c o n s t e l l a t i o n b r a n d s , i n c.
 baroness philippine de rothschild announced agree- ment to maintain equal ownership of opus one.
 opus one produces fine wines at napa valley winery.
 acquisition of robert mondavi supports com- pany 2019s strategy of strengthening breadth portfolio across price segments to capitalize on overall growth in premium , super-premium and fine wine categories.
 company believes acquired robert mondavi brand names have strong brand recognition globally.
 majority of sales brands generated in united states.
 company leveraging robert mondavi brands in united states through selling , marketing distribution infrastructure.
 company intends to expand distribution for robert mondavi brands in europe through constellation europe infrastructure.
 robert mondavi acquisition supports com pany 2019s strategy of growth breadth across categories geographies strengthens competitive position in core markets.
 robert mondavi acquisition provides company with greater presence in growing premium , super-premium fine wine sectors within united states ability to capitalize on broader geographic distribution in strategic international markets.
 company believes growth opportunities for premium , super-premium fine wines in united kingdom and other 201cnew world 201d wine markets.
 total con- sideration paid in cash to robert mondavi shareholders was $ 1030. 7 million.
 company incurred direct acquisition costs of $ 12. 0 million.
 purchase price financed with borrowings under company 2019s 2004 credit agreement ( defined in note 9 ).
 in with purchase method accounting acquired net assets recorded at fair value at date of acquisition.
 purchase price based primarily on estimated future operating results of robert mondavi business  including factors described above estimated benefit from operating cost synergies.
 results of operations of robert mondavi busi- ness reported in constellation wines segment included in consolidated statements of income since acquisition date.
 following table summarizes fair values of assets acquired and liabilities assumed in robert mondavi acquisition at date of acquisition adjusted for final appraisal : ( in thousands ).
 trademarks not subject to amortization.
 none goodwill expected to deductible for tax purposes.
 following robert mondavi acquisition  company sold certain acquired vineyard properties related assets  investments accounted for under equity method other winery properties related assets during years ended february 28 , 2006  and february 28 , 2005.
 company realized net proceeds of $ 170. 8 million from sale of these assets during year ended february 28 , 2006.
 amounts realized during year ended february 28 , 2005 not material.
 no gain or loss recognized upon sale of these assets.
 hardy acquisition 2013 on march 27 , 2003  company acquired control of brl hardy limited  now known as hardy wine company limited ( 201chardy 201d ) on april 9 , 2003  company completed acquisition of all hardy 2019s outstanding capital stock.
 result of acquisi- tion hardy company also acquired remaining 50% ( 50 % ) ownership of pacific wine partners llc ( 201cpwp 201d ), joint venture company established with hardy in july 2001.
 acquisition of hardy with remaining interest in pwp referred to as 201chardy acquisition. through acquisition company acquired one of australia 2019s largest wine producers with interests in wineries and vineyards in most australia 2019s major wine regions new zealand united states and hardy 2019s marketing and sales operations in united kingdom.
october 2005 , pwp merged into another subsidiary company.
 total consideration paid in cash and class a common stock to hardy shareholders was $ 1137. 4 million.
 company recorded direct acquisition costs of $ 17. 2 million.
 acquisition date for accounting march 27 , 2003.
 company recorded $ 1. 6 million reduction in purchase price to reflect imputed interest between accounting acquisition date and final payment of consideration.
 charge included as interest expense in consolidated statement of income for year ended february 29 , 2004.
 cash portion of purchase price paid to hardy shareholders and optionholders ( $ 1060. 2 million ) financed with $ 660. 2 million borrowings under company 2019s then existing credit agreement and $ 400. 0 million borrowings under company 2019s then existing bridge loan agreement.
 company issued 6577826 shares of com- pany 2019s class a common stock valued at $ 77. 2 million based on simple average of closing market price of company 2019s class a common stock beginning two days before and ending two days after april 4 , 2003  day hardy shareholders elected form of consid- eration.
 purchase price based primarily on discounted cash flow analysis contemplated value of broader geographic distribution in strategic international markets and presence in important australian winemaking regions.
 company and hardy have complementary businesses share common growth orientation and operating philosophy.
 hardy acquisition supports company 2019s strategy of growth and breadth across categories

current assets               | $ 513782
---------------------------- | ---------
property plant and equipment | 438140
other assets                 | 124450
trademarks                   | 138000
goodwill                     | 634203
total assets acquired        | 1848575
current liabilities          | 310919
long-term liabilities        | 494995
total liabilities assumed    | 805914
net assets acquired          | $ 1042661


issuer purchases of equity securities table provides information about repurchases of common stock during three-month period ended december 31 , 2012.
 period total number of shares purchased average price paid per total number shares purchased part of publicly announced program ( a ) amount available for future share repurchases program ( b ) ( in millions ).
 repurchased total 3. 1 million shares common stock for $ 286 million during quarter ended december 31 , 2012 under share repurchase program announced in october 2010.
 b board of directors approved share repurchase program for repurchase common stock time-to-time authorizing amount available for share repurchases of $ 6. 5 billion.
 under program  management has discretion to determine dollar amount of shares be repurchased timing of repurchases in compliance with applicable law and regulation.
 program does not expiration date.
 as of december 31 , 2012  repurchased total of 54. 3 million shares under program for $ 4. 2 billion.

period                                 | total number of shares purchased | average price paid per share | total number of shares purchased as part of publicly announced program ( a ) | amount available for future share repurchases under the program ( b ) ( in millions )
-------------------------------------- | -------------------------------- | ---------------------------- | ---------------------------------------------------------------------------- | -------------------------------------------------------------------------------------
october 1 2012 2013 october 28 2012    | 842445                           | $ 93.38                      | 842445                                                                       | $ 2522
october 29 2012 2013 november 25 2012  | 872973                           | 90.86                        | 872973                                                                       | 2443
november 26 2012 2013 december 31 2012 | 1395288                          | 92.02                        | 1395288                                                                      | 2315
total                                  | 3110706                          | $ 92.07                      | 3110706                                                                      | $ 2315


american tower corporation subsidiaries notes consolidated financial statements six-month offering period.
 weighted average fair value per share of espp share purchase options year ended december 31 , 2014 , 2013 2012 was $ 14. 83 , $ 13. 42 $ 13. 64 ,.
 at december 31 , 2014  3. 4 million shares remain reserved for future issuance under plan.
 key assumptions black-scholes pricing model for shares purchased through espp for years ended december 31 ,:.
 16.
 equity mandatory convertible preferred stock offering 2014on may 12, 2014 company completed registered public offering of 6000000 shares of 5. 25% ( 5. 25 % ) mandatory convertible preferred stock  series a par value $ 0. 01 per share ( 201cmandatory convertible preferred stock 201d ).
 net proceeds of offering were $ 582. 9 million after deducting commissions estimated expenses.
 company used net proceeds offering to fund acquisitions including acquisition from richland  initially funded by indebtedness incurred under 2013 credit facility.
 unless converted earlier each share of mandatory convertible preferred stock will automatically convert on may 15 , 2017  into between 0. 9174 and 1. 1468 shares of common stock depending on applicable market value common stock subject to anti-dilution adjustments.
 certain restrictions prior to may 15 , 2017  holders mandatory convertible preferred stock may elect to convert all or portion of shares into common stock at minimum conversion rate.
 dividends on shares mandatory convertible preferred stock payable cumulative basis declared by company 2019s board of directors or authorized committee ) at annual rate of 5. 25% (. ) on liquidation preference of $ 100.00 per share  february 15  may 15  august 15 november 15 each year commencing august 15 , 2014 to including  may 15 , 2017.
 company may pay dividends in cash or subject to limitations shares of common stock or any combination of cash and shares common stock.
 terms of mandatory convertible preferred stock provide unless full cumulative dividends paid or set aside for payment on all outstanding mandatory convertible preferred stock for all prior dividend periods no dividends may be declared or paid on common stock.
 stock repurchase program 2014in march 2011  board of directors approved stock repurchase program company authorized to purchase up to $ 1. 5 billion of common stock ( 201c2011 buyback 201d ).
 september 2013  company temporarily suspended repurchases connection with acquisition of mipt.
 under 2011 buyback  company authorized to purchase shares time through open market purchases or privately negotiated transactions at prevailing prices in accordance with securities laws other legal requirements subject to market conditions other factors.
 facilitate repurchases company

| 2014                                       | 2013                                       | 2012
----------------------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------ | ------------------------------------------
range of risk-free interest rate                                              | 0.06% ( 0.06 % ) 2013 0.11% ( 0.11 % )     | 0.07% ( 0.07 % ) 2013 0.13% ( 0.13 % )     | 0.05% ( 0.05 % ) 2013 0.12% ( 0.12 % )
weighted average risk-free interest rate                                      | 0.09% ( 0.09 % )                           | 0.10% ( 0.10 % )                           | 0.08% ( 0.08 % )
expected life of shares                                                       | 6 months                                   | 6 months                                   | 6 months
range of expected volatility of underlying stock price over the option period | 11.29% ( 11.29 % ) 2013 16.59% ( 16.59 % ) | 12.21% ( 12.21 % ) 2013 13.57% ( 13.57 % ) | 33.16% ( 33.16 % ) 2013 33.86% ( 33.86 % )
weighted average expected volatility of underlying stock price                | 14.14% ( 14.14 % )                         | 12.88% ( 12.88 % )                         | 33.54% ( 33.54 % )
expected annual dividend yield                                                | 1.50% ( 1.50 % )                           | 1.50% ( 1.50 % )                           | 1.50% ( 1.50 % )


jpmorgan chase & co. /2010 annual report 273 table presents u. s.
 and non-u. s.
 components of income before income tax expense/ benefit ) extraordinary gain for years ended december 31, 2010 , 2009 2008.
 year ended december 31  ( in millions ) 2010 2009 2008.
 non-u. s. ( a ) 8291 9804 4867 income before income tax expense benefit ) extraordinary gain $ 24859 $ 16067 $ 2773 ( ) non-u. s.
 income defined as income generated from operations outside u. s.
 note 28 2013 restrictions on cash intercompany funds transfers business of jpmorgan chase bank, national association ( bank. ) subject to examination regulation by office of comptroller of currency ( 201cocc 201d ).
 bank member of u. s.
 federal reserve sys- tem deposits in.
 insured by fdic.
 board of governors of federal reserve system ( 201cfed reserve 201d ) requires depository institutions to maintain cash reserves with federal reserve bank.
 average amount of reserve balances deposited by firm 2019s bank subsidiaries with federal reserve banks was approximately $ 803 million and $ 821 million in 2010 and 2009  respectively.
 restrictions by u.
 federal law prohibit jpmorgan chase and affiliates from borrowing from banking subsidiar- ies unless loans secured in specified amounts.
 such secured loans to firm other affiliates limited to 10% ( 10 % ) of banking subsidiary 2019s total capital  as determined by risk- based capital guidelines ; aggregate amount of all such loans limited to 20% ( 20 % ) of banking subsidiary 2019s total capital.
principal sources of jpmorgan chase 2019s income ( parent company 2013only basis ) are dividends and interest from jpmorgan chase bank , n. other banking and nonbanking subsidi- aries of.
 in addition to dividend restrictions in statutes regulations , federal reserve , occ fdic have authority under financial institutions supervisory act to prohibit or limit payment of dividends by banking organizations they supervise including jpmorgan chase and its subsidiaries banks or bank holding companies  if in banking regulator 2019s opinion  payment of dividend would unsafe or unsound practice in financial condi- tion of banking organization.
 at january 1 , 2011  jpmorgan chase 2019s banking subsidiaries could pay  aggregate , $ 2. 0 billion in dividends to bank holding companies without prior approval of relevant banking regulators.
 capacity to pay dividends in 2011 will be supplemented by banking subsidiaries 2019 earnings during in compliance with rules regulations established by u.
 non-u.
 regulators  as of december 31 , 2010 and 2009 , cash in amount $ 25. 0 billion and $ 24. 0 billion  and securities with fair value of $ 9. 7 billion and $ 10. 2 billion  were segregated in special bank accounts for benefit of securities and futures brokerage customers.
 note 29 2013 capital federal reserve establishes capital requirements  including well-capitalized standards for consolidated financial holding company.
 occ establishes similar capital requirements standards for firm 2019s national banks  including jpmorgan chase bank . and chase bank usa .
 two categories of risk-based capital : tier 1 capital and tier 2 capital.
tier 1 capital of common stockholders 2019 equity  perpetual preferred stock noncontrolling interests in sub- sidiaries trust preferred capital debt securities  less goodwill certain other adjustments.
 tier 2 capital preferred stock not qualifying as tier 1 subordinated long-term debt other instruments qualifying as tier 2 aggregate allowance for credit losses up to certain percentage of risk-weighted assets.
 total capital is tier 1 capital plus tier 2 capital.
 under risk- based capital guidelines federal reserve jpmorgan chase required to maintain minimum ratios of tier 1 total capital to risk-weighted assets minimum leverage ratios ( defined as tier 1 capital divided by adjusted quarterly average assets ).
 failure to meet minimum requirements could cause federal reserve to take action.
 banking subsidiaries subject to capital requirements by primary regulators.
 as of december 31 , 2010 2009  jpmorgan chase all banking subsidiaries well-capitalized met all capital requirements subject.

year ended december 31 ( in millions )                             | 2010    | 2009    | 2008
------------------------------------------------------------------ | ------- | ------- | ----------------
u.s .                                                              | $ 16568 | $ 6263  | $ -2094 ( 2094 )
non-u.s. ( a )                                                     | 8291    | 9804    | 4867
income before incometax expense/ ( benefit ) andextraordinary gain | $ 24859 | $ 16067 | $ 2773


graph shows five-year comparison cumulative shareholder return company's common stock with cumulative total return s&p small cap 600 index russell 1000 index both published indices.
 comparison five-year cumulative total return from december 31  2005 to december 31  2010 assumes $ 100 invested reinvestment dividends period indexed returns.
 2005 2006 2007 2008 2009 2010 smith ( a o ) corp s&p smallcap 600 index russell 1000 index

company/index           | baseperiod 12/31/05 | baseperiod 12/31/06 | baseperiod 12/31/07 | baseperiod 12/31/08 | baseperiod 12/31/09 | 12/31/10
----------------------- | ------------------- | ------------------- | ------------------- | ------------------- | ------------------- | --------
a o smith corp          | 100.0               | 108.7               | 103.3               | 88.8                | 133.6               | 178.8
s&p small cap 600 index | 100.0               | 115.1               | 114.8               | 78.1                | 98.0                | 123.8
russell 1000 index      | 100.0               | 115.5               | 122.1               | 76.2                | 97.9                | 113.6


packaging corporation of america notes to consolidated financial statements continued ) december 31 , 2002 2.
 summary of significant accounting policies continued ) stock-based compensation pca entered management equity agreements june 1999 with 125 management-level employees.
 agreements provide for grant of options to purchase aggregate 6576460 shares of pca 2019s common stock at $ 4. 55 per share same price per share at pca holdings llc purchased common stock in transactions.
 agreement called for options to vest ratably over five-year period or upon completion initial public offering full vesting with contractual restrictions on transfer for period up to 18 months following completion offering.
 options vested with initial public offering in january 2000  restriction period ended august , 2001.
 october 1999  company adopted long-term equity incentive plan provides for grants of stock options  stock appreciation rights ) restricted stock performance awards to directors , officers employees of pca others engage in services for pca.
 option awards granted to officers and employees vest ratably over four-year period option awards to directors vest immediately.
 under plan  terminate on june 1 , 2009 up to 4400000 shares of common stock available for issuance under long-term equity incentive plan.
 summary of company 2019s stock option activity  related information for years ended december 31 , 2002 , 2001 and 2000 options weighted-average exercise price.
 clean proof : for cycle 12

| options              | weighted-average exercise price
------------------------ | -------------------- | -------------------------------
balance january 1 2000   | 6569200              | $ 4.55
granted                  | 1059700              | 11.92
exercised                | -398138 ( 398138 )   | 4.55
forfeited                | -26560 ( 26560 )     | 6.88
balance december 31 2000 | 7204202              | $ 5.62
granted                  | 953350               | 15.45
exercised                | -1662475 ( 1662475 ) | 4.59
forfeited                | -16634 ( 16634 )     | 11.18
balance december 31 2001 | 6478443              | $ 7.31
granted                  | 871000               | 19.55
exercised                | -811791 ( 811791 )   | 5.52
forfeited                | -63550 ( 63550 )     | 15.44
balance december 31 2002 | 6474102              | $ 9.10


valuation allowance established for certain deferred tax assets related to impairment of investments.
 accounting for uncertainty in income taxes during fiscal 2011 and 2010 , aggregate changes in total gross unrecognized tax benefits summarized as ( in thousands ) : beginning balance gross increases in unrecognized tax benefits 2013 prior year tax positions gross decreases in unrecognized tax benefits 2013 prior year tax positions gross increases in unrecognized tax benefits 2013 current year tax positions settlements with taxing authorities lapse of statute of limitations foreign exchange gains and losses ending balance $ 156925 11901 ( 4154 ) 32420 ( 29101 ) ( 3825 ) $ 163607 $ 218040 ( 7104 ) 15108 ( 70484 ) ( 7896 ) $ 156925 as of december 2, 2011, combined accrued interest and penalties related to tax positions taken on tax returns included in non-current income taxes payable was approximately $ 12. 3 million.
 we file income tax returns in.
 federal basis and many.
 state and foreign jurisdictions.
 subject to continual examination of income tax returns by domestic and foreign tax authorities.
 major tax jurisdictions are u. , ireland and california.
 for. earliest fiscal years open for examination are 2005 , 2006 and 2008 .
 regularly assess likelihood of outcomes from these examinations to determine adequacy of provision for income taxes and reserved for potential adjustments from current examination.
 estimates ; no assurance that final determination of examinations will not have adverse effect on operating results and financial position.
 in august 2011  canadian income tax examination covering fiscal years 2005 through 2008 completed.
 accrued tax and interest related to these years was approximately $ 35 million previously reported in long-term income taxes payable.
reclassified approximately $ 17 million to short-term income taxes payable decreased deferred tax assets by approximately $ 18 million with resolution.
 $ 17 million balance in short-term income taxes payable partially secured by letter of credit expected to be paid by first quarter of fiscal 2012.
 in october 2010  u.
 income tax examination covering fiscal years 2005 through 2007 completed.
 accrued tax and interest related to these years was $ 59 million previously reported in long-term income taxes payable.
 paid $ 20 million with resolution.
 net income statement tax benefit in fourth quarter of fiscal 2010 of $ 39 million resulted.
 timing of resolution of income tax examinations uncertain amounts and timing of tax payments part of audit settlement process.
 events could cause large fluctuations in balance sheet classification of current and non-current assets and liabilities.
 company believes before end of fiscal 2012  possible certain audits will conclude or statutes of limitations on certain income tax examination periods will expire or both.
 given uncertainties can determine range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 40 million.
 these amounts would decrease income tax expense under current gaap related to income taxes.
 note 11.
 restructuring fiscal 2011 restructuring plan in fourth quarter of fiscal 2011  to align resources around digital media and digital marketing strategies initiated restructuring plan of reductions of approximately 700 full-time positions worldwide recorded restructuring charges of approximately $ 78. 6 million related to ongoing termination benefits for position eliminated.
 of contents adobe systems incorporated notes to consolidated financial statements.
 valuation allowance established for certain deferred tax assets related to impairment of investments.
accounting for uncertainty in income taxes during fiscal 2011 and 2010 , aggregate changes in total gross unrecognized tax benefits summarized as ( in thousands ) : beginning balance gross increases in unrecognized tax benefits 2013 prior year tax positions gross decreases in unrecognized tax benefits 2013 prior year tax positions gross increases in tax benefits 2013 current year tax positions settlements with taxing authorities lapse of statute of limitations foreign exchange gains and losses ending balance $ 156925 11901 ( 4154 ) 32420 ( 29101 ) ( 3825 ) $ 163607 $ 218040 ( 7104 ) 15108 ( 70484 ) ( 7896 ) $ 156925 as of december 2, 2011 , combined accrued interest and penalties related to tax positions taken on tax returns included in non-current income taxes payable was approximately $ 12. 3 million.
 file income tax returns in.
 federal basis and in many.
 state and foreign jurisdictions.
 subject to continual examination of income tax returns by irs other domestic and foreign tax authorities.
 major tax jurisdictions are u. , ireland and california.
. earliest fiscal years open for examination are 2005 , 2006 and 2008 .
 regularly assess likelihood of outcomes from these examinations to determine adequacy of provision for income taxes reserved for potential adjustments from current examination.
 believe estimates reasonable ; no assurance that final determination of examinations not adverse effect on operating results and financial position.
 in august 2011  canadian income tax examination covering fiscal years 2005 through 2008 completed.
 accrued tax and interest related to these years was approximately $ 35 million previously reported in long-term income taxes payable.
reclassified approximately $ 17 million to short-term income taxes payable decreased deferred tax assets by approximately $ 18 million with resolution.
 $ 17 million balance in short-term income taxes payable partially secured by letter of credit expected to be paid by first quarter of fiscal 2012.
 in october 2010  u. s.
 income tax examination covering fiscal years 2005 through 2007 completed.
 accrued tax and interest related to these years was $ 59 million previously reported in long-term income taxes payable.
 paid $ 20 million with resolution.
 net income statement tax benefit in fourth quarter of fiscal 2010 of $ 39 million.
 timing of resolution of income tax examinations uncertain amounts and timing of tax payments part of audit settlement process.
 events could cause large fluctuations in balance sheet classification of current and non-current assets and liabilities.
 company believes before end of fiscal 2012  possible certain audits will conclude or statutes of limitations on certain income tax examination periods will expire or both.
 uncertainties can determine range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 40 million.
 these amounts would decrease income tax expense under current gaap related to income taxes.
 note 11.
 restructuring fiscal 2011 restructuring plan in fourth quarter of fiscal 2011  to align resources around digital media and digital marketing strategies initiated restructuring plan of reductions of approximately 700 full-time positions worldwide recorded restructuring charges of approximately $ 78. 6 million related to ongoing termination benefits for position eliminated.
 table of contents adobe systems incorporated notes to consolidated financial statements

| 2011             | 2010
---------------------------------------------------------------------------- | ---------------- | ----------------
beginning balance                                                            | $ 156925         | $ 218040
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 11901            | 9580
gross decreases in unrecognized tax benefits 2013 prior year tax positions   | -4154 ( 4154 )   | -7104 ( 7104 )
gross increases in unrecognized tax benefits 2013 current year tax positions | 32420            | 15108
settlements with taxing authorities                                          | -29101 ( 29101 ) | -70484 ( 70484 )
lapse of statute of limitations                                              | -3825 ( 3825 )   | -7896 ( 7896 )
foreign exchange gains and losses                                            | -559 ( 559 )     | -319 ( 319 )
ending balance                                                               | $ 163607         | $ 156925