$ 43. 3 million in 2011 compared to $ 34. 1 million in 2010.
 retail segment represented 13% ( 13 % ) and 15% ( 15 % ) of company 2019s total net sales in 2011 and 2010 respectively.
 retail segment 2019s operating income was $ 4. 7 billion , $ 3. 2 billion  and $ 2. 3 billion during 2012 , 2011  2010 respectively.
 year-over-year increases in retail operating income attributable to higher overall net sales in higher average revenue per store.
 gross margin margin for 2012 , 2011 2010 as follows ( in millions  except gross margin percentages ) :.
 gross margin percentage in 2012 was 43. 9% ( 43. 9 % ) compared to 40. 5% ( 40. 5 % ) in 2011.
 year-over-year increase gross margin driven by lower commodity product costs higher mix of iphone sales improved leverage on fixed costs from higher net sales.
 increase gross margin partially offset by impact stronger u.
 dollar.
 gross margin percentage first half of 2012 was 45. 9% ( 45. 9 % ) compared to 41. 4% ( 41. 4 % ) second half of 2012.
 primary drivers of higher gross margin first half 2012 are higher mix of iphone sales improved leverage on fixed costs from higher net sales.
 gross margin second half 2012 affected by introduction of new products with flat pricing higher cost structures greater value price reductions on existing products higher transition costs with product launches strengthening of u. s.
 dollar partially offset by lower commodity costs.
 gross margin percentage in 2011 was 40. 5% ( 40. 5 % )  compared to 39. 4% ( 39. 4 % ) in 2010.
 year-over-year increase in gross margin driven by lower commodity and other product costs.
company expects experience decreases in gross margin percentage in future periods  compared to levels 2012  company anticipates gross margin of about 36% ( 36 % ) during first quarter of 2013.
 expected future declines in gross margin due to higher mix of new innovative products with flat or reduced pricing higher cost structures deliver greater value to customers anticipated component cost other cost increases.
 future strengthening of u. s.
 dollar could negatively impact gross margin.
 foregoing statements regarding company 2019s expected gross margin percentage future periods including first quarter of 2013 , forward-looking could differ from actual results because of several factors including  not in part i , item 1a of form 10-k under heading 201crisk factors 201d those described in paragraph.
 general gross margins and margins on individual products will remain under downward pressure due to variety factors including continued industry wide global product pricing pressures  increased competition  compressed product life cycles product transitions potential increases in cost of components  potential increases in costs of outside manufacturing services potential shift in company 2019s sales mix towards products with lower gross margins.
 in response to competitive pressures  company expects will continue to take product pricing actions , adversely affect gross margins.
 gross margins could be affected by company 2019s ability to manage product quality warranty costs effectively to stimulate demand for certain products.
 due to company 2019s significant international operations  financial results can be significantly affected short-term by fluctuations in exchange rates.

| 2012             | 2011             | 2010
----------------------- | ---------------- | ---------------- | ----------------
net sales               | $ 156508         | $ 108249         | $ 65225
cost of sales           | 87846            | 64431            | 39541
gross margin            | $ 68662          | $ 43818          | $ 25684
gross margin percentage | 43.9% ( 43.9 % ) | 40.5% ( 40.5 % ) | 39.4% ( 39.4 % )


2018 annual report 21 item 3 : legal proceedings snap-on involved in legal matters litigated/or settled in ordinary course business.
 not possible to predict outcome matters management believes results legal matters not material impact on snap-on 2019s consolidated financial position results operations or cash flows.
 item 4 : mine safety disclosures not applicable.
 part ii item 5 : market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities snap-on had 55610781 shares of common stock outstanding as of 2018 year end.
 snap-on 2019s stock listed on new york stock exchange under ticker symbol 201csna. 201d at february 8, 2019  4704 registered holders of snap-on common stock.
 issuer purchases of equity securities chart discloses information regarding shares of snap-on 2019s common stock repurchased company during fourth quarter of fiscal 2018  all purchased pursuant to board 2019s authorizations company publicly announced.
 snap-on undertaken stock repurchases to offset dilution shares issued for employee and franchisee stock purchase plans  equity plans for other corporate purposes when company believes market conditions favorable.
 repurchase of snap-on common stock at company 2019s discretion  subject to prevailing financial and market conditions.
 period shares purchased average price per share shares purchased as part of publicly announced plans or programs approximate value of shares may yet be purchased under publicly announced plans or programs*.
 n/a : not applicable * subject to further adjustment pursuant 1996 authorization described below as of december 29 , 2018  approximate value of shares may yet be purchased pursuant to outstanding board authorizations is $ 215. 7 million.
2022 in 1996 , board authorized company to repurchase shares of company 2019s common stock time to in open market or in privately negotiated transactions ( 201cthe 1996 authorization 201d ).
 1996 authorization allows repurchase of up to number of shares issued or delivered from treasury time to under various plans company place call for issuance company 2019s common stock.
 because number of shares purchased pursuant 1996 authorization will change to as i ) company issues shares under various plans ; and ) shares repurchased authorization , number of shares authorized to be repurchased will vary time to time.
 1996 authorization expire when terminated by board.
 calculating approximate value of shares company may yet purchase under 1996 authorization , company assumed price of $ 148. 71 , $ 161. 00 and $ 144. 25 per share of common stock as of end of fiscal 2018 months ended october 27 , 2018 , november 24 , 2018 , and december 29 , 2018 , respectively.
 2022 in 2017 , board authorized repurchase of aggregate of up to $ 500 million of company 2019s common stock ( 201cthe 2017 authorization 201d ).
 2017 authorization will expire when aggregate repurchase price limit is met , unless terminated earlier by board.

period               | sharespurchased | average priceper share | shares purchased aspart of publiclyannounced plans orprograms | approximatevalue of sharesthat may yet bepurchased underpubliclyannounced plansor programs*
-------------------- | --------------- | ---------------------- | ------------------------------------------------------------- | -------------------------------------------------------------------------------------------
09/30/18 to 10/27/18 | 90000           | $ 149.28               | 90000                                                         | $ 292.4 million
10/28/18 to 11/24/18 | 335000          | $ 159.35               | 335000                                                        | $ 239.1 million
11/25/18 to 12/29/18 | 205000          | $ 160.20               | 205000                                                        | $ 215.7 million
total/average        | 630000          | $ 158.19               | 630000                                                        | n/a


target awards for other named executive officers set : joseph f.
 domino , ceo - entergy texas ( 50% ( 50 % ) ) ; hugh t.
 mcdonald , ceo - entergy arkansas ( 50% ( 50 % ) ) ; haley fisackerly, ceo - entergy mississippi ( 40% ( 40 % ) ) ; william m.
 mohl ( 60% ( 60 % ) ), ceo - entergy gulf states and entergy louisiana ; charles l.
 rice , jr.
 ( 40% ( 40 % ) ), ceo - entergy new orleans and theodore h.
 bunting , jr.
 - principal accounting officer - subsidiaries ( 60% ( 60 % ) ).
 target awards for named executive officers other entergy set by respective supervisors subject to approval of entergy 2019s chief executive officer ) allocated potential incentive pool established by personnel committee among direct and indirect reports.
 setting target awards supervisor took account considerations similar to used personnel committee target awards for entergy named executive officers.
 target awards set based on executive officer 2019s current position and executive management level within entergy organization.
 executive management levels at entergy range from level 1 thorough level 4.
 mr.
 denault mr.
 taylor hold positions in level 2 mr.
 bunting mr.
 mohl in level 3 mr.
 domino mr.
 fisackerly .
 mcdonald.
 rice hold positions in level 4.
 incentive targets differ based on external market data by committee independent compensation consultant and other factors noted.
 in december 2010 committee determined executive incentive plan targets for establishing annual bonuses for 2011.
committee 2019s determination of target levels made after full board review of management 2019s 2011 financial plan for entergy corporation  upon recommendation of finance committee  after committee determination established targets aligned with entergy corporation 2019s anticipated 2011 financial performance as reflected in financial plan.
 targets established to measure management performance against reported results were:.
 operating cash flow ( $ in billions ) in january 2012  after reviewing earnings per share and operating cash flow results against performance objectives in committee determined entergy corporation had exceeded reported earnings per share target of $ 6. 60 by $ 0. 95 in 2011 while falling short of operating cash flow goal of $ 3. 35 billion by $ 221 million in 2011.
 in accordance with annual incentive plan  in january 2012  personnel committee certified 2012 entergy achievement multiplier at 128% ( 128 % ) of target.
 under management effectiveness program  entergy achievement multiplier is automatically increased by 25 percent for members of office of chief executive if pre- established underlying performance goals by personnel committee are satisfied at end of performance period  subject to personnel committee's discretion to adjust automatic multiplier downward or eliminate it altogether.
 in accordance with section 162 ( m ) of internal revenue code  multiplier entergy refers to as management effectiveness factor is intended to committee mechanism to consideration specific achievement factors relating to overall performance of entergy corporation.
 in january 2012  committee eliminated management effectiveness factor with respect to 2011 incentive awards , reflecting personnel committee's determination that entergy achievement multiplier  without management effectiveness factor  was consistent with performance levels achieved by management.
 annual incentive awards for named executive officers (.
.
.
 ) are awarded from incentive pool approved by committee.
pool  each named executive officer 2019s supervisor determines annual incentive payment based on entergy achievement multiplier.
 supervisor has discretion to increase or decrease multiple determine incentive award based on individual and business unit performance.
 incentive awards subject to approval of entergy 2019s chief executive officer.

| minimum | target | maximum
------------------------------------- | ------- | ------ | -------
earnings per share ( $ )              | $ 6.10  | $ 6.60 | $ 7.10
operating cash flow ( $ in billions ) | $ 2.97  | $ 3.35 | $ 3.70


celanese purchases equity securities information regarding repurchases common stock during three months ended december 31 , 2014 follows : period number of shares purchased ( 1 ) average price paid per share total number of shares purchased part publicly announced program approximate dollar value of shares remaining purchased under program ( 2 ).
 ___________________________ ( 1 ) includes 27780 and 9537 for october and december 2014  related to shares withheld from employees cover statutory minimum withholding requirements for personal income taxes related vesting of restricted stock units.
 ( 2 ) board of directors authorized aggregate repurchase of $ 1. 4 billion common stock since february 2008.
 see note 17 - stockholders' equity in accompanying consolidated financial statements for further information.
 performance graph following performance graph related information not "soliciting material" or "filed" with securities and exchange commission  nor information incorporated into future filing under securities act of 1933 or securities exchange act of 1934 , amended except extent specifically incorporate it by reference into filing.
 comparison of cumulative total return

period               | totalnumberof sharespurchased ( 1 ) | averageprice paidper share | total numberof sharespurchased aspart of publiclyannounced program | approximatedollarvalue of sharesremaining thatmay bepurchased underthe program ( 2 )
-------------------- | ----------------------------------- | -------------------------- | ------------------------------------------------------------------ | ------------------------------------------------------------------------------------
october 1 - 31 2014  | 192580                              | $ 58.02                    | 164800                                                             | $ 490000000
november 1 - 30 2014 | 468128                              | $ 59.25                    | 468128                                                             | $ 463000000
december 1 - 31 2014 | 199796                              | $ 60.78                    | 190259                                                             | $ 451000000
total                | 860504                              |                            | 823187                                                             |


2015 compared to 2014 mfc 2019s net sales 2015 decreased $ 322 million or 5% ( 5 % ) compared to 2014.
 decrease attributable to lower net sales $ 345 million for air and missile defense programs due to fewer deliveries primarily pac-3 ) lower volume primarily thaad ) $ 85 million for tactical missile programs due to fewer deliveries primarily guided multiple launch rocket system gmlrs joint air-to-surface standoff missile partially offset by increased deliveries for hellfire.
 decreases partially offset by higher net sales $ 55 million for energy solutions programs due to increased volume.
 mfc 2019s operating profit 2015 decreased $ 62 million or 5% ( 5 % ) compared to 2014.
 decrease attributable to lower operating profit $ 100 million for fire control programs due lower risk retirements primarily lantirn sniper ) $ 65 million for tactical missile programs due to lower risk retirements hellfire gmlrs ) fewer deliveries.
 decreases partially offset by higher operating profit $ 75 million for air and missile defense programs due to increased risk retirements primarily thaad ).
 adjustments not related to volume net profit booking rate adjustments approximately $ 60 million lower in 2015 compared to 2014.
 backlog backlog decreased in 2016 2015 due to lower orders on pac-3  hellfire  jassm.
 backlog increased in 2015 2014 due to higher orders on pac-3  lantirn/sniper certain tactical missile programs partially offset by lower orders on thaad.
 expect mfc 2019s net sales to increase mid-single digit percentage range in 2017 compared to 2016 driven by air and missile defense programs.
 operating profit expected to be flat or increase slightly.
 operating profit margin expected to decline from 2016 levels of contract mix fewer risk retirements in 2017 compared to 2016.
rotary mission systems described november 6 , 2015 acquired sikorsky aligned sikorsky business under rms business segment.
 2015 results of acquired sikorsky business included in financial results from november 6 , 2015 acquisition date through december 31 , 2015.
 consolidated operating results and rms business segment operating results for year ended december 31 , 2015 not reflect full year of sikorsky operations.
 rms business segment provides design  manufacture  service support for military civil helicopters  ship submarine mission combat systems ; mission systems sensors for rotary fixed-wing aircraft ; sea land-based missile defense systems radar systems littoral combat ship ( lcs ) simulation training services unmanned systems technologies.
 rms supports needs government customers in cybersecurity delivers communication command control capabilities through complex mission solutions for defense applications.
 rms 2019 major programs include black hawk seahawk helicopters  aegis combat system ( aegis ), lcs , space fence  advanced hawkeye radar system  tpq-53 radar system  ch-53k development helicopter  vh-92a helicopter program.
 rms 2019 operating results included ( in millions ) :.
 2016 compared to 2015 rms 2019 net sales in 2016 increased $ 4. 4 billion  or 48% ( 48 % )  compared to 2015.
 increase primarily attributable to higher net sales of approximately $ 4. 6 billion from sikorsky  acquired november 6 , 2015.
 net sales for 2015 include sikorsky 2019s results subsequent to acquisition date net of certain revenue adjustments required account for acquisition business.
 increase partially offset by lower net sales of approximately $ 70 million for

| 2016           | 2015           | 2014
------------------ | -------------- | -------------- | ----------------
net sales          | $ 13462        | $ 9091         | $ 8732
operating profit   | 906            | 844            | 936
operating margin   | 6.7% ( 6.7 % ) | 9.3% ( 9.3 % ) | 10.7% ( 10.7 % )
backlog atyear-end | $ 28400        | $ 30100        | $ 13300


dividends summary of cash dividends paid on citi 2019s outstanding common stock during 2009 and 2010  see note 33 to consolidated financial statements.
 u. s.
 government holds citigroup trust preferred securities acquired exchange offers consummated in 2009 citigroup agreed not to pay quarterly common stock dividend exceeding $ 0. 01 per quarter subject to customary exceptions.
 any dividend on citi 2019s outstanding common stock in compliance with citi 2019s obligations to remaining outstanding citigroup preferred stock.
 performance graph comparison of five-year cumulative total return graph and table compare cumulative total return on citigroup 2019s common stock with cumulative total return of s&p 500 index s&p financial index over five-year period through december 31 , 2010.
 graph table assume $ 100 invested on december 31 , 2005 in citigroup 2019s common stock , s&p 500 index s&p financial index all dividends reinvested.
 citigroup s&p 500 index s&p financial index comparison of five-year cumulative total return for years ended 2006 2007 2008 2009 2010.

december 31, | citigroup | s&p 500 index | s&p financial index
------------ | --------- | ------------- | -------------------
2006         | 119.55    | 115.79        | 119.19
2007         | 66.10     | 122.15        | 96.98
2008         | 15.88     | 76.96         | 43.34
2009         | 7.85      | 97.33         | 50.80
2010         | 11.22     | 111.99        | 56.96


table of contents adobe inc.
 notes to consolidated financial statements ( continued ) stock options 2003 plan allows to grant options to all employees including executive officers , outside consultants non- employee directors.
 plan continue until earlier i ) termination by board or ii ) date all shares available for issuance under plan issued and restrictions on issued shares lapsed.
 option vesting periods in past were generally four years expire seven years from effective date of grant.
 eliminated use of stock option grants for all employees and non-employee directors but may choose to issue stock options in future.
 performance share programs 2018 , 2017 2016 performance share programs aim to help focus key employees on building stockholder value provide significant award potential for outstanding company performance enhance ability company to attract and retain talented competent individuals.
 executive compensation committee of board of directors approves terms of performance share programs including award calculation methodology under terms of 2003 plan.
 shares may be earned based on achievement of objective relative total stockholder return over three-year performance period.
 performance share awards awarded and fully vest upon later executive compensation committee's certification of level of achievement or three-year anniversary of each grant.
 program participants ability to receive up to 200% ( 200 % ) of target number of shares originally granted.
 on january 24 , 2018  executive compensation committee approved 2018 performance share program terms similar to prior year performance share programs.
 as of november 30 , 2018  shares awarded under 2018 , 2017 and 2016 performance share programs yet to be achieved.
 issuance of shares upon exercise of stock options , vesting of restricted stock units and performance shares  purchases of shares under espp  will issue treasury stock.
 if treasury stock not available, common stock will be issued.
to minimize impact of on-going dilution from exercises of stock options vesting of restricted stock units performance shares , we instituted stock repurchase program.
 see note 12 for information regarding stock repurchase programs.
 valuation of stock-based compensation stock-based compensation cost is measured at grant date based on fair value of award.
 performance share awards valued using monte carlo simulation model.
 fair value of awards fixed at grant date amortized over longer remaining performance or service period.
 use black-scholes option pricing model to determine fair value of espp shares.
 determination of fair value of stock-based payment awards on date of grant using option pricing model affected by stock price assumptions regarding complex subjective variables.
 these variables include expected stock price volatility over expected term of awards , actual projected employee stock option exercise behaviors, risk-free interest rate expected dividends.
 expected term of espp shares is average of remaining purchase periods under each offering period.
 assumptions used to value employee stock purchase rights were as follows:.

| 2018                                | 2017                                | 2016
-------------------------- | ----------------------------------- | ----------------------------------- | -----------------------
expected life ( in years ) | 0.5 - 2.0                           | 0.5 - 2.0                           | 0.5 - 2.0
volatility                 | 26% ( 26 % ) - 29% ( 29 % )         | 22% ( 22 % ) - 27% ( 27 % )         | 26 - 29% ( 29 % )
risk free interest rate    | 1.54% ( 1.54 % ) - 2.52% ( 2.52 % ) | 0.62% ( 0.62 % ) - 1.41% ( 1.41 % ) | 0.37 - 1.06% ( 1.06 % )


goldman sachs group , inc.
 subsidiaries notes to consolidated financial statements lending commitments firm 2019s lending commitments are agreements to lend with fixed termination dates depend on satisfaction of contractual conditions to borrowing.
 commitments presented net of amounts syndicated to third parties.
 total commitment amount not reflect actual future cash flows firm may syndicate all or additional portions of commitments.
 commitments can expire unused or be reduced or cancelled at counterparty 2019s request.
 table below presents information about lending commitments.
 2030 held for investment lending commitments accounted for on accrual basis.
 see note 9 for information commitments.
 2030 held for sale lending commitments accounted for at lower of cost or fair value.
 gains or losses related to lending commitments at fair value generally recorded net of fees in other principal transactions.
 2030 all lending commitments relates to firm 2019s investing & lending segment.
 commercial lending.
 firm 2019s commercial lending commitments primarily extended to investment-grade corporate borrowers.
 commitments included $ 93. 99 billion as of december 2018 and $ 85. 98 billion as of december 2017 related to relationship lending activities for operating and general corporate purposes $ 27. 92 billion as of december 2018 and $ 42. 41 billion as of december 2017 related to other investment banking activities generally extended for contingent acquisition financing often short-term borrowers replace with other funding sources.
 firm extends lending commitments in connection with other types corporate lending commercial real estate financing.
 see note 9 for further information about funded loans.
 sumitomo mitsui financial group , inc.
 smfg provides firm with credit loss protection on certain approved loan commitments ( primarily investment-grade commercial lending commitments.
notional amount loan commitments was $ 15. 52 billion as of december 2018 and $ 25. 70 billion december 2017.
 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. 0 billion  of $ 550 million protection provided as of december 2018 and december 2017.
 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 of consumer and corporate loans.
 contingent and forward starting collateralized agreements / forward starting collateralized financings collateralized agreements includes resale and securities borrowing agreements includes repurchase and secured lending agreements settle at future date generally within three business days.
 firm also 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.
 letters of credit firm has commitments under letters of credit issued by various banks provides to counterparties in lieu of securities or cash to satisfy collateral and margin deposit requirements.
 investment commitments investment commitments includes commitments to invest in private equity , real estate other assets directly and through funds firm raises and manages.
 investment commitments included $ 2. 42 billion as of december 2018 and $ 2.09 billion of december 2017  related to commitments to invest in funds managed by firm.
 if commitments called  funded at market value date of investment.
 goldman sachs 2018 form 10-k 159

$ in millions       | as of december 2018 | as of december 2017
------------------- | ------------------- | -------------------
held for investment | $ 120997            | $ 124504
held for sale       | 8602                | 9838
at fair value       | 7983                | 9404
total               | $ 137582            | $ 143746


jpmorgan chase & co. /2016 annual report 49 net interest income excluding cib 2019s markets businesses reviewing net interest income management reviews net interest income excluding from cib 2019s markets businesses assess performance firm 2019s lending investing asset-liability management deposit-raising activities.
 cib 2019s markets businesses represent fixed income markets equity markets.
 data non-gaap financial measures due to exclusion of net interest income from cib 2019s markets businesses.
 management believes exclusion provides investors analysts measure analyze non- markets-related business trends firm comparable measure to other financial institutions primarily focused on lending investing deposit-raising activities.
 year ended december 31 , ( in millions  except rates ) 2016 2015 2014 net interest income 2013 managed basis $ 47292 $ 44620 $ 44619 less : cib markets net interest income 6334 5298 6032 net interest income excluding cib markets $ 40958 $ 39322 $ 38587 average interest-earning assets $ 2101604 $ 2088242 $ 2049093 less : average cib markets interest-earning assets 520307 510292 522989 average interest assets excluding cib markets $ 1581297 $ 1577950 $ 1526104 net interest yield on average interest-earning assets 2013 managed basis 2. 25% ( 2. 25 % ) 2. 14% ( 2. 14 % ) 2. 18% ( 2. 18 % ) net interest yield on average cib markets interest- earning assets 1. 22 1. 04 1. 15 net interest yield on average interest-earning assets excluding cib markets 2. 59% ( 2. 59 % ) 2. 49% ( 2. 49 % ) 2. 53% ( 2. 53 % ) interest includes effect of related hedges.
 taxable-equivalent amounts used where applicable.
reconciliation of net interest income reported and managed basis see reconciliation from firm 2019s reported.
 results to managed basis page 48.
 prior period amounts revised to align with cib 2019s markets businesses.
 further information cib 2019s markets businesses see page 61.
 calculation of certain.
 gaap non-gaap financial measures.
 calculated : book value per share ( 201cbvps 201d ) common stockholders 2019 equity at period-end / common shares period-end overhead ratio total noninterest expense / total net revenue return on assets ( 201croa 201d ) reported net income / total average assets return on common equity ( 201croe 201d ) net income* / average common stockholders 2019 equity return on tangible common equity ( 201crotce 201d ) net income* / average tangible common equity tangible book value per share ( 201ctbvps 201d ) tangible common equity at period-end / common shares period-end * represents net income applicable to common equity.
 jpmorgan chase & co. /2016 annual report 49 net interest income excluding cib 2019s markets businesses reviewing net interest income managed basis management reviews net interest income excluding interest income from cib 2019s markets businesses to assess performance of firm 2019s lending investing deposit-raising activities.
 cib 2019s markets businesses represent fixed income markets and equity markets.
 data presented below are non-gaap financial measures due to exclusion of net interest income from cib 2019s markets businesses ( 201ccib markets 201d ).
 management believes exclusion provides investors analysts measure to analyze non- markets-related business trends firm provides comparable measure to other financial institutions primarily focused on lending  investing deposit-raising activities.
year ended december 31 in millions except rates ) 2016 2015 2014 net interest income 2013 managed basis $ 47292 $ 44620 $ 44619 less cib markets net interest income 6334 5298 6032 net interest income excluding cib markets $ 40958 $ 39322 $ 38587 average interest-earning assets $ 2101604 $ 2088242 $ 2049093 less average cib markets interest-earning assets 520307 510292 522989 average excluding cib markets $ 1581297 $ 1577950 $ 1526104 net interest yield on average interest-earning assets 2013 managed basis 2. 25% ( 2. 25 % ) 2. 14% ( 2. 14 % ) 2. 18% ( 2. 18 % ) net interest yield average cib markets interest- earning assets ) 1. 22 1. 04 1. 15 net interest yield average interest-earning assets excluding cib markets 2. 59% ( 2. 59 % ) 2. 49% ( 2. 49 % ) 2. 53% ( 2. 53 % ) interest includes effect of related hedges.
 taxable-equivalent amounts used where applicable.
 reconciliation of net interest income reported managed basis see reconciliation firm 2019s reported.
 results to managed basis page 48.
 prior period amounts revised to align with cib 2019s markets businesses.
 further information cib 2019s markets businesses see page 61.
 calculation of certain.
 gaap non-gaap financial measures.
gaap non-gaap financial measures calculated book value per share 201cbvps 201d ) common stockholders 2019 equity period-end common shares period-end overhead ratio total noninterest expense total net revenue return on assets 201croa 201d ) reported net income average assets return on common equity ( 201croe 201d ) net income average common stockholders 2019 equity return tangible common equity 201crotce 201d ) net income* average tangible common equity book value per share 201ctbvps 201d ) tangible common equity period-end common shares period-end represents net income common equity

year ended december 31 ( in millions except rates )                         | 2016             | 2015             | 2014
--------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
net interest income 2013 managed basis ( a ) ( b )                          | $ 47292          | $ 44620          | $ 44619
less : cib markets net interest income ( c )                                | 6334             | 5298             | 6032
net interest income excluding cib markets ( a )                             | $ 40958          | $ 39322          | $ 38587
average interest-earning assets                                             | $ 2101604        | $ 2088242        | $ 2049093
less : average cib markets interest-earning assets ( c )                    | 520307           | 510292           | 522989
average interest-earning assets excluding cib markets                       | $ 1581297        | $ 1577950        | $ 1526104
net interest yield on average interest-earning assets 2013 managed basis    | 2.25% ( 2.25 % ) | 2.14% ( 2.14 % ) | 2.18% ( 2.18 % )
net interest yield on average cib markets interest-earning assets ( c )     | 1.22             | 1.04             | 1.15
net interest yield on average interest-earning assets excluding cib markets | 2.59% ( 2.59 % ) | 2.49% ( 2.49 % ) | 2.53% ( 2.53 % )


12.
 brokerage receivables brokerage payables citi has receivables payables for financial instruments sold to purchased from brokers  dealers customers  arise in ordinary course business.
 citi exposed to risk of loss from inability of brokers dealers customers to pay for purchases or deliver financial instruments sold  citi would to sell or purchase financial instruments at prevailing market prices.
 credit risk reduced to exchange or clearing organization acts as counterparty replaces broker  dealer customer in.
 citi to protect from risks customer activities by requiring customers to maintain margin collateral in compliance with regulatory internal guidelines.
 margin levels monitored daily customers deposit additional collateral as required.
 where customers meet collateral requirements  citi may liquidate sufficient underlying financial instruments to bring customer into compliance with required margin level.
 exposure to credit risk impacted by market volatility  may impair ability clients to satisfy obligations to citi.
 credit limits are established closely monitored for customers for brokers dealers engaged in forwards  futures other transactions credit sensitive.
 brokerage receivables and brokerage payables consisted of:.
 payables to brokers , dealers  clearing organizations 19915 18069 total brokerage payables ( 1 ) $ 57152 $ 53722 ( 1 ) includes brokerage receivables and payables recorded by citi broker- dealer entities accounted for in accordance with aicpa accounting guide for brokers dealers in securities as codified in asc 940-320.

in millions of dollars                                      | december 31 , 2016 | december 31 , 2015
----------------------------------------------------------- | ------------------ | ------------------
receivables from customers                                  | $ 10374            | $ 10435
receivables from brokers dealers and clearing organizations | 18513              | 17248
total brokerage receivables ( 1 )                           | $ 28887            | $ 27683
payables to customers                                       | $ 37237            | $ 35653
payables to brokers dealers and clearing organizations      | 19915              | 18069
total brokerage payables ( 1 )                              | $ 57152            | $ 53722


as of december 31 , 2006  leased office and laboratory facility in connecticut, additional office , distribution storage facilities in san diego  four foreign facilities in japan , singapore  china netherlands under non-cancelable operating leases expire through july 2011.
 leases contain renewal options from one to five years.
 as of december 31 , 2006  contractual obligations were ( in thousands ) : contractual obligation total less than 1 year 1 2013 3 years 1 2013 5 years more than 5 years.
 above table not include orders for goods services in normal course business not enforceable or legally binding.
 item 7a.
 quantitative qualitative disclosures about market risk.
 interest rate sensitivity exposure to market risk for changes in interest rates relates primarily to investment portfolio.
 fair market value of fixed rate securities may be adversely impacted by fluctuations in interest rates income earned on floating rate securities may decline decreases in interest rates.
 under current policies do not use interest rate derivative instruments to manage exposure to interest rate changes.
 attempt to ensure safety preservation of invested principal funds by limiting default risk  market risk reinvestment risk.
 mitigate default risk by investing in investment grade securities.
 historically maintained short average maturity for investment portfolio believe hypothetical 100 basis point adverse move in interest rates interest rate yield curve would not materially affect fair value of interest sensitive financial instruments.
 foreign currency exchange risk most of revenue realized in u. s.
 dollars , some portions revenue realized in foreign currencies.
 financial results could be affected by factors changes in foreign currency exchange rates or weak economic conditions in foreign markets.
 functional currencies of subsidiaries are respective local currencies.
 accounts of operations are translated from local currency to u. s.
dollar using current exchange rate at balance sheet date for balance sheet accounts , average exchange rate during period for revenue and expense accounts.
 effects of translation recorded in accumulated other comprehensive income as separate component of stockholders 2019 equity.

contractual obligation | payments due by period total | payments due by period less than 1 year | payments due by period 1 2013 3 years | payments due by period 1 2013 5 years | payments due by period more than 5 years
---------------------- | ---------------------------- | --------------------------------------- | ------------------------------------- | ------------------------------------- | ----------------------------------------
operating leases       | $ 37899                      | $ 5320                                  | $ 10410                               | $ 9371                                | $ 12798
total                  | $ 37899                      | $ 5320                                  | $ 10410                               | $ 9371                                | $ 12798


note 12.
 shareholders 2019 equity accumulated comprehensive loss : loss included components as of december 31:.
 net after-tax unrealized loss on available-for-sale securities of $ 1. 64 billion and $ 5. 21 billion as of december 31 , 2009 and december 31 , 2008 included $ 635 million and $ 1. 39 billion  of net after-tax unrealized losses related to securities reclassified from sale to held to maturity.
 decrease in losses related to transfers compared to december 31 , 2008 resulted from amortization recognition of losses from other-than-temporary impairment on securities.
 additional information in note 3.
 year ended december 31 , 2009 realized net gains of $ 368 million from sales available-for-sale securities.
 unrealized pre-tax gains of $ 46 million included in other comprehensive income at december 31 , 2008  net of deferred taxes of $ 18 million.
 year ended december 31  2008 realized net gains of $ 68 million from sales available-for-sale securities.
 unrealized pre-tax gains of $ 71 million included in other comprehensive income at december 31 , 2007 net of deferred taxes of $ 28 million.
 year ended december 31 , 2007 realized net gains of $ 7 million on sales of available-for-sale securities.
 unrealized pre-tax losses of $ 32 million included in other comprehensive income at december 31 , 2006  net of deferred taxes of $ 13 million.
 preferred stock : in october 2008.
 treasury 2019s capital purchase program issued 20000 shares of series b fixed-rate cumulative perpetual preferred stock , $ 100000 liquidation preference per share warrant to purchase 5576208 shares of common stock at exercise price of $ 53.80 per share , to treasury received aggregate proceeds of $ 2 billion.
 aggregate proceeds allocated to preferred stock and warrant based on relative fair values on date of issuance.
 approximately $ 1. 88 billion and $ 121 million  respectively allocated to preferred stock and warrant.
 difference between initial value of $ 1. 88 billion preferred stock and liquidation amount of $ 2 billion intended to be charged to retained earnings credited to preferred stock over period preferred stock outstanding using effective yield method.
 for 2008 and 2009  charges to retained earnings reduced net income to common shareholders by $ 4 million and $ 11 million  reduced basic and diluted earnings per common share for periods.
 calculations presented in note 22.
 preferred shares qualified as tier 1 regulatory capital paid cumulative quarterly dividends at rate of 5% ( 5 % ) per year.
 for 2008 and 2009  accrual of dividends on preferred shares reduced net income common shareholders by $ 18 million and $ 46 million  respectively reduced basic and diluted earnings per common share for periods.
 calculations presented in note 22.
 warrant was immediately

( in millions )                                                                                | 2009             | 2008             | 2007
----------------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | --------------
foreign currency translation                                                                                | $ 281            | $ 68             | $ 331
net unrealized loss on hedges of net investments in non-u.s . subsidiaries                                        | -14 ( 14 )       | -14 ( 14 )       | -15 ( 15 )
net unrealized loss on available-for-sale securities                                                              | -1636 ( 1636 )   | -5205 ( 5205 )   | -678 ( 678 )
net unrealized loss on fair value hedges of available-for-sale securities                                         | -113 ( 113 )     | -242 ( 242 )     | -55 ( 55 )
losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit | -159 ( 159 )     | 2014             | 2014
losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit   | -387 ( 387 )     | 2014             | 2014
minimum pension liability                                                                                | -192 ( 192 )     | -229 ( 229 )     | -146 ( 146 )
net unrealized loss on cash flow hedges                                                                           | -18 ( 18 )       | -28 ( 28 )       | -12 ( 12 )
total                                                                                | $ -2238 ( 2238 ) | $ -5650 ( 5650 ) | $ -575 ( 575 )


notes to consolidated financial statements level 3 rollforward if derivative transferred to level 3 during reporting period entire gain or loss for period included in level 3.
 transfers between levels reported at beginning of reporting period.
 tables negative amounts for transfers into level 3 and positive amounts for transfers out of level 3 represent net transfers of derivative liabilities.
 gains and losses on level 3 derivatives considered in context of following : 2030 derivative with level 1 and/or level 2 inputs classified in level 3 entirety if one significant level 3 input.
 2030 if one significant level 3 input  entire gain or loss from adjusting only observable inputs (. level 1 and 2 inputs classified as level 3.
 2030 gains or losses reported in level 3 from changes in level 1 or level 2 inputs frequently offset by gains or losses attributable to level 1 or level 2 derivatives and/or level 1 level 2 and level 3 cash instruments.
 gains/ ( losses ) included in level 3 rollforward not represent overall impact on firm 2019s results of operations , liquidity or capital resources.
 tables present changes in fair value for all derivatives categorized as level 3 as of end of year.
.
 aggregate amounts include losses of approximately $ 1. 29 billion and $ 324 million reported in 201cmarket making 201d and 201cother principal transactions.
 net unrealized loss on level 3 derivatives of $ 1. 37 billion for 2013 resulted from changes in level 2 inputs primarily attributable to losses on certain credit derivatives  due to impact of tighter credit spreads and losses on certain currency derivatives due to changes in foreign exchange rates.
transfers into level 3 derivatives during 2013 reflected transfers of credit derivative assets from level 2 due to reduced transparency of upfront credit points correlation inputs value derivatives.
 transfers out of level 3 derivatives 2013 reflected transfers of certain credit derivatives to level 2  due to unobservable credit spread correlation inputs no longer significant to valuation unobservable inputs not significant to net risk of certain portfolios.
 goldman sachs 2013 annual report 143

in millions                | level 3 derivative assets and liabilities at fair value for the year ended december 2013 asset/ ( liability ) balance beginning of year | level 3 derivative assets and liabilities at fair value for the year ended december 2013 net realized gains/ ( losses ) | level 3 derivative assets and liabilities at fair value for the year ended december 2013 net unrealized gains/ ( losses ) relating to instruments still held at year-end | level 3 derivative assets and liabilities at fair value for the year ended december 2013 purchases | level 3 derivative assets and liabilities at fair value for the year ended december 2013 sales | level 3 derivative assets and liabilities at fair value for the year ended december 2013 settlements | level 3 derivative assets and liabilities at fair value for the year ended december 2013 transfers into level 3 | level 3 derivative assets and liabilities at fair value for the year ended december 2013 transfers out of level 3 | level 3 derivative assets and liabilities at fair value for the year ended december 2013 asset/ ( liability ) balance endof year
-------------------------- | --------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------
interest rates 2014 net    | $ -355 ( 355 )                                                                                | $ -78 ( 78 )                                                                                | $ 168                                                                                | $ 1                                                                                | $ -8 ( 8 )                                                                                | $ 196                                                                                | $ -9 ( 9 )                                                                                | $ -1 ( 1 )                                                                                | $ -86 ( 86 )
credit 2014 net            | 6228                                                                                | -1 ( 1 )                                                                                | -977 ( 977 )                                                                                | 201                                                                                | -315 ( 315 )                                                                                | -1508 ( 1508 )                                                                                | 695                                                                                | -147 ( 147 )                                                                                | 4176
currencies 2014 net        | 35                                                                                | -93 ( 93 )                                                                                | -419 ( 419 )                                                                                | 22                                                                                | -6 ( 6 )                                                                                | 169                                                                                | 139                                                                                | -47 ( 47 )                                                                                | -200 ( 200 )
commodities 2014 net       | -304 ( 304 )                                                                                | -6 ( 6 )                                                                                | 58                                                                                | 21                                                                                | -48 ( 48 )                                                                                | 281                                                                                | 50                                                                                | 8                                                                                | 60
equities 2014 net          | -1248 ( 1248 )                                                                                | -67 ( 67 )                                                                                | -202 ( 202 )                                                                                | 77                                                                                | -472 ( 472 )                                                                                | 1020                                                                                | -15 ( 15 )                                                                                | -52 ( 52 )                                                                                | -959 ( 959 )
total derivatives 2014 net | $ 4356                                                                                | $ ( 245 ) 1                                                                                | $ ( 1372 ) 1                                                                                | $ 322                                                                                | $ -849 ( 849 )                                                                                | $ 158                                                                                | $ 860                                                                                | $ -239 ( 239 )                                                                                | $ 2991


american tower corporation subsidiaries notes to consolidated financial statements 2014 continued ) pro forma disclosure 2014the company adopted disclosure-only provisions of sfas no.
 123 , amended by sfas no.
 148 , presented disclosure in note 1.
 201cfair value 201d of each option grant estimated on date of grant using black-scholes option pricing model.
 weighted average fair values of company 2019s options granted during 2004 , 2003 2002 were $ 7. 05 , $ 6. 32 , $ 2. 23 per share  respectively.
 key assumptions apply pricing model are:.
 voluntary option exchanges 2014in february 2004  company issued to eligible employees 1032717 options exercise price of $ 11. 19 per share  fair market value of class a common stock on date of grant.
 options issued in connection with voluntary option exchange program company in august 2003, company accepted for surrender cancelled options exercise price of $ 10. 25 or greater ) to purchase 1831981 shares of class a common stock.
 program offered to both full and part-time employees excluding company 2019s executive officers directors  called for grant ( six months one day from surrender date to employees still employed date ) of new options exercisable for two shares of class a common stock for every three shares of class a common stock issuable upon exercise of surrendered option.
 no options granted to employees participated in exchange offer between cancellation date and new grant date.
 in may 2002  company issued to eligible employees 2027612 options exercise price of $ 3. 84 per share  fair market value of class a common stock on date of grant.
 options issued in connection with voluntary option exchange program company in october 2001, company accepted for surrender cancelled options to purchase 3471211 shares of its class a common stock.
program  offered to full and part-time employees excluding company 2019s executive officers called for grant ( six months and one day from surrender date to employees still employed ) of new options exercisable for two shares of class a common stock for every three shares of class a common stock issuable upon exercise of surrendered option.
 no options granted to employees participated in exchange offer between cancellation date and new grant date.
 atc mexico holding stock option plan 2014the company maintains stock option plan in atc mexico subsidiary ( atc mexico plan ).
 atc mexico plan provides for issuance of options to officers  employees directors consultants of atc mexico.
 plan limits number of shares of common stock granted to aggregate of 360 shares subject to adjustment based on changes in atc mexico 2019s capital structure.
 during 2002  atc mexico granted options to purchase 318 shares of atc mexico common stock to officers and employees.
 options issued at one time with exercise price of $ 10000 per share.
 exercise price per share at fair market value as determined by board of directors with independent appraisal at company 2019s request.
 fair value of atc mexico plan options granted during 2002 were $ 3611 per share as determined by black-scholes option pricing model.
 all outstanding options exercised in march 2004.
 no options under plan granted in 2004 or 2003  or exercised or cancelled in 2003 or 2002  no options exercisable as of december 31 , 2003 or 2002.
 see note 10.

| 2004             | 2003             | 2002
---------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
approximate risk-free interest rate                                                | 4.23% ( 4.23 % ) | 4.00% ( 4.00 % ) | 4.53% ( 4.53 % )
expected life of option grants                                                     | 4 years          | 4 years          | 5 years
expected volatility of underlying stock ( the company plan )                       | 80.6% ( 80.6 % ) | 86.6% ( 86.6 % ) | 92.3% ( 92.3 % )
expected volatility of underlying stock ( atc mexico and atc south america plans ) | n/a              | n/a              | n/a
expected dividends                                                                 | n/a              | n/a              | n/a


2022 fuel prices 2013 crude oil prices increased steady rate in 2007 rising from low $ 56. 58 per barrel in january to close at nearly $ 96. 00 per barrel at end of december.
 2007 average fuel price increased by 9% ( 9 % ) added $ 242 million operating expenses compared to 2006.
 fuel surcharge programs to offset impact of higher fuel prices.
 fuel conservation efforts improve consumption rate by 2% ( 2 % ).
 locomotive simulator training  operating practices  technology contributed to improvement saving approximately 21 million gallons of fuel in 2007.
 2022 free cash flow 2013 cash generated by operating activities totaled record $ 3. 3 billion yielding free cash flow of $ 487 million in 2007.
 free cash flow defined as cash provided by operating activities less cash used in investing activities dividends paid.
 free cash flow not a financial measure under accounting principles accepted in united states ( gaap ) by sec regulation g and item 10 of sec regulation s-k.
 believe free cash flow important in evaluating financial performance measures ability to generate cash without additional external financings.
 free cash flow should be considered in addition to substitute for cash provided by operating activities.
 table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions of dollars 2007 2006 2005.
 2008 outlook 2022 safety 2013 operating safe railroad benefits employees customers shareholders public.
 continue using multi-faceted approach to safety utilizing technology risk assessment quality control training for engaging with employees.
 plan to implement total safety culture ( tsc ) throughout operations.
 tsc  employee-focused initiative improve safety process designed to establish maintain promote safety among co-workers.
respect to public safety , we continue efforts to maintain , upgrade close crossings install video cameras on locomotives educate public about crossing safety through internal industry programs other activities.
 2022 commodity revenue 2013 despite uncertainty regarding u. s.
 economy  expect record revenue in 2008 based on current economic indicators  forecasted demand  improved customer service additional opportunities to reprice business.
 yield increases fuel surcharges primary drivers of commodity revenue growth in 2008.
 expect overall volume fall within range of 1% ( 1 % ) higher to 1% ( 1 % ) lower than 2007 continued softness in some market sectors.
 2022 transportation plan 2013 in 2008  continue to evaluate traffic flows network logistic patterns to identify additional opportunities to simplify operations improve network efficiency asset utilization.
 plan to maintain adequate manpower locomotives improve productivity using industrial engineering techniques improve operating margins.
 2022 fuel prices 2013 fuel prices remain volatile  crude oil prices conversion regional spreads fluctuating throughout year.
 on average expect fuel prices to increase 15% ( 15 % ) to 20% ( 20 % ) above average price in 2007.
 to reduce impact of fuel price on earnings continue to seek recovery from customers through fuel surcharge programs expand fuel conservation efforts.

millions of dollars                   | 2007           | 2006           | 2005
------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 3277         | $ 2880         | $ 2595
cash used in investing activities     | -2426 ( 2426 ) | -2042 ( 2042 ) | -2047 ( 2047 )
dividends paid                        | -364 ( 364 )   | -322 ( 322 )   | -314 ( 314 )
free cash flow                        | $ 487          | $ 516          | $ 234


continue deployed as wireless service providers beginning investments in 3g data networks.
 in ghana uganda  wireless service providers continue to build out voice and data networks to satisfy increasing demand for wireless services.
 in south africa , where voice networks in advanced stage of development, carriers beginning to deploy 3g data networks across spectrum acquired in recent spectrum auctions.
 in mexico brazil  where nationwide voice networks deployed, some incumbent wireless service providers continue to invest in 3g data networks recent spectrum auctions enabled other incumbent wireless service providers to begin initial investments in 3g data networks.
 in markets chile  peru colombia  recent anticipated spectrum auctions expected to drive investment in nationwide voice and 3g data networks.
 in germany , most mature international wireless market  demand driven by government-mandated rural fourth generation network build-out other tenant initiatives to deploy next generation wireless services.
 believe incremental demand for tower sites will continue in international markets as wireless service providers seek to remain competitive by increasing coverage networks while investing in next generation data networks.
 rental and management operations new site revenue growth.
 during year ended december 31 , 2012  grew portfolio of communications real estate through acquisitions construction activities including acquisition and construction of approximately 8810 sites.
 in majority of international markets  acquisition or construction of new sites results in increased pass-through revenues and expenses.
 continue to evaluate opportunities to acquire larger communications real estate portfolios domestically and internationally to determine meet risk adjusted hurdle rates integrate them into existing portfolio.
( 1 ) majority of sites acquired or constructed in 2012 in brazil , germany  india uganda ; in 2011 in brazil , colombia , ghana , india  mexico south africa ; 2010 in chile , colombia  india peru.
 network development services segment revenue growth.
 as continue focus on growing rental and management operations , anticipate network development services revenue will continue represent small percentage of total revenues.
 through network development services segment  offer tower-related services including site acquisition  zoning permitting services structural analysis services , primarily support site leasing business addition of new tenants and equipment on sites  including in connection with provider network upgrades.
 rental and management operations expenses.
 direct operating expenses incurred by domestic and international rental and management segments include direct site level expenses consist primarily of ground rent  property taxes  repairs maintenance  security power and fuel costs  some may be passed through to tenants.
 segment direct operating expenses exclude all segment corporate selling , general , administrative development expenses , aggregated into one line item entitled selling , general  administrative development expense in consolidated statements of operations.
 domestic and international rental and management segments selling , general  administrative development expenses do not significantly increase adding incremental tenants to legacy sites typically increase only modestly year-over-year.
 leasing additional space to new tenants on legacy sites provides significant incremental cash flow.
 may incur additional segment selling , general , administrative development expenses as increase presence in geographic areas where recently launched operations or focused on expanding portfolio.
 profit margin growth positively impacted by addition of new tenants to legacy sites can be temporarily diluted by development activities.

new sites ( acquired or constructed ) | 2012 | 2011  | 2010
------------------------------------- | ---- | ----- | ----
domestic                              | 960  | 470   | 950
international ( 1 )                   | 7850 | 10000 | 6870


note 17.
 debt debt as of december 2 , 2011 and december 3 , 2010 consisted of in thousands : capital lease obligations total debt and capital lease obligations less current portion debt capital lease obligations $ 1494627 19681 1514308 $ 1505096 $ 1493969 28492 1522461 $ 1513662 in february 2010  issued $ 600. 0 million of 3. 25%. % ) senior notes due february 1 , 2015 ( 201c2015 notes 201d ) and $ 900. 0 million of 4. 75% ( 4. 75 % ) senior notes due february 1 , 2020 ( 201c2020 notes 201d 2015 201cnotes 201d ).
 proceeds were approximately $ 1. 5 billion net of issuance discount of $ 6. 6 million.
 notes rank equally with other unsecured and unsubordinated indebtedness.
 incurred issuance costs of approximately $ 10. 7 million.
 discount and issuance costs amortized to interest expense over terms notes using effective interest method.
 effective interest rate including discount issuance costs is 3. 45% ( 3. 45 % ) for 2015 notes and 4. 92% ( 4. 92 % ) for 2020 notes.
 interest payable semi-annually on february 1 and august 1 , commencing august 1 , 2010.
 during fiscal 2011 interest payments totaled $ 62. 3 million.
 proceeds from notes available for general corporate purposes including repayment of balance outstanding on credit facility.
 based quoted market prices fair value of notes was approximately $ 1. 6 billion as of december 2 , 2011.
 may redeem notes at any time subject to make whole premium.
 change of control triggering events may be required to repurchase notes at price equal to 101% ( 101 % ) of principal amount plus accrued and unpaid interest to date of repurchase.
 notes include covenants limit ability to grant liens on assets enter into sale and leaseback transactions subject to significant allowances.
 as of december 2 , 2011  in compliance with all covenants.
 credit agreement in august 2007  entered amendment to credit agreement dated february 2007 ( 201camendment 201d ) increased total senior unsecured revolving facility from $ 500. 0 million to $ 1. 0 billion.
 amendment permits us to request one-year extensions effective on each anniversary of closing date of original agreement subject to majority consent of lenders.
 retain option to request additional $ 500. 0 million in commitments for maximum aggregate facility of $ 1. 5 billion.
 in february 2008  entered second amendment to credit agreement february 26 , 2008 extended maturity date of facility by one year to february 16 , 2013.
 facility would terminate this date if no additional extensions requested and granted.
 other terms and conditions remain same.
 facility contains financial covenant requiring us not to exceed certain maximum leverage ratio.
 option borrowings under facility accrue interest based on london interbank offered rate ( 201clibor 201d ) for one , two three six months  or longer periods with bank consent plus margin according to pricing grid tied to financial covenant or base rate.
 margin set at rates between 0. 20% ( 0. 20 % ) and 0. 475% (. % ).
 commitment fees payable facility at rates between 0. 05% ( 0. 05 % ) and 0. 15% ( 0. 15 % ) per year based on same pricing grid.
 facility available to provide loans to us and certain subsidiaries for general corporate purposes.
 on february 1 , 2010  paid outstanding balance on credit facility and entire $ 1.0 billion credit line under facility available for borrowing.
 capital lease obligation in june 2010 entered sale-leaseback agreement to sell equipment totaling $ 32. 2 million leaseback equipment over 43 months.
 transaction classified as capital lease obligation recorded at fair value.
 as of december 2 , 2011 capital lease obligations of $ 19. 7 million includes $ 9. 2 million current debt.
 table of contents adobe systems incorporated notes to consolidated financial statements.
 note 17.
 debt debt as of december 2 , 2011 and december 3, 2010 consisted of capital lease obligations total debt and capital lease obligations less current portion debt capital lease obligations $ 1494627 19681 1514308 $ 1505096 $ 1493969 28492 1522461 $ 1513662 in february 2010 issued $ 600. 0 million of 3. 25% ( 3. 25 % ) senior notes due february 1 , 2015 ( 201c2015 notes 201d ) and $ 900. 0 million of 4. 75% ( 4. 75 % ) senior notes due february 1 , 2020 201c2020 notes 201d.
 proceeds were approximately $ 1. 5 billion net of issuance discount of $ 6. 6 million.
 notes rank equally with other unsecured and unsubordinated indebtedness.
 incurred issuance costs of approximately $ 10. 7 million.
 discount and issuance costs amortized to interest expense over terms of notes using effective interest method.
 effective interest rate including discount issuance costs is 3. 45% ( 3. 45 % ) for 2015 notes and 4. 92% ( 4. 92 % ) for 2020 notes.
 interest payable semi-annually in arrears on february 1 and august 1  commencing august 1 , 2010.
 fiscal 2011 interest payments totaled $ 62. 3 million.
proceeds from notes available for general corporate purposes  including repayment of balance outstanding on our credit facility.
 based on quoted market prices fair value of notes was approximately $ 1. 6 billion as of december 2 , 2011.
 we may redeem notes at any time  subject to make whole premium.
 upon change of control triggering events we may be required to repurchase notes at price equal to 101% ( % ) of principal amount, plus accrued and unpaid interest to date of repurchase.
 notes include covenants limit ability to grant liens on assets and to enter into sale and leaseback transactions , subject to significant allowances.
 as of december 2 , 2011  we in compliance with all covenants.
 credit agreement in august 2007  entered into amendment to credit agreement february 2007 ( 201camendment 201d ) increased total senior unsecured revolving facility from $ 500. 0 million to $ 1. 0 billion.
 amendment permits to request one-year extensions effective on each anniversary of closing date of original agreement subject to majority consent of lenders.
 retain option to request additional $ 500. 0 million in commitments  for maximum aggregate facility of $ 1. 5 billion.
 in february 2008  entered second amendment to credit agreement february 26, 2008 extended maturity date of facility by one year to february 16 , 2013.
 facility would terminate at this date if no additional extensions requested and granted.
 all other terms and conditions remain same.
 facility contains financial covenant requiring not to exceed certain maximum leverage ratio.
option  borrowings under facility accrue interest based on london interbank rate ( 201clibor 201d ) for one two three six months or longer periods with bank consent plus margin according to pricing grid tied to financial covenant or base rate.
 margin set at rates between 0. 20% ( 0. 20 % ) and 0. 475% ( 0. 475 % ).
 commitment fees payable on facility at rates between 0. 05% ( 0. 05 % ) and 0. 15% ( 0. 15 % ) per year based on same pricing grid.
 facility available to provide loans to us and subsidiaries for general corporate purposes.
 on february 1 , 2010 paid outstanding balance on credit facility entire $ 1. 0 billion credit line remains available for borrowing.
 capital lease obligation in june 2010 entered sale-leaseback agreement to sell equipment totaling $ 32. 2 million leaseback equipment over 43 months.
 transaction classified as capital lease obligation recorded at fair value.
 as of december 2 , 2011 capital lease obligations of $ 19. 7 million includes $ 9. 2 million of current debt.
 table of contents adobe systems incorporated notes to consolidated financial statements

| 2011      | 2010
---------------------------------------- | --------- | ---------
notes                                    | $ 1494627 | $ 1493969
capital lease obligations                | 19681     | 28492
total debt and capital lease obligations | 1514308   | 1522461
less : current portion                   | 9212      | 8799
debt and capital lease obligations       | $ 1505096 | $ 1513662


notes to consolidated financial statements see notes 6 and 7 for information about fair value measurements of cash instruments derivatives included in 201cfinancial instruments owned  at fair value 201d and 201cfinancial instruments sold  not yet purchased  at fair value , 201d and note 8 for information about fair value measurements of other financial assets financial liabilities accounted for at fair value under fair value option.
 table below presents financial assets financial liabilities accounted for at fair value under fair value option accordance with other.
.
 table cash collateral and counterparty netting represents impact on derivatives of netting across levels fair value hierarchy.
 netting among positions classified in same level included in level.
 1.
 includes approximately $ 890 billion and $ 915 billion as of december 2013 and december 2012  carried at fair value or amounts approximate fair value.
 level 3 financial assets as of december 2013 decreased compared with december 2012 reflecting decrease in derivative assets  bank loans bridge loans  loans securities backed by commercial real estate.
 decrease in derivative assets reflected decline in credit derivative assets due to settlements unrealized losses.
 decrease in bank loans bridge loans  loans securities backed by commercial real estate reflected settlements sales partially offset by purchases transfers into level 3.
 level 3 financial liabilities as of december 2013 decreased compared with december 2012 reflecting decrease in other liabilities accrued expenses due to sale of majority stake in firm 2019s european insurance business in december 2013.
see notes 6  7 8 for further information about level 3 cash instruments  derivatives financial assets liabilities accounted for at fair value under fair value option  including information about significant unrealized gains losses transfers in out of level 3.
 124 goldman sachs 2013 annual report

$ in millions                                                                                | as of december 2013 | as of december 2012
----------------------------------------------------------------------------------------------- | ------------------- | -------------------
total level 1 financial assets                                                                  | $ 156030            | $ 190737
total level 2 financial assets                                                                  | 499480              | 502293
total level 3 financial assets                                                                  | 40013               | 47095
cash collateral and counterparty netting                                                        | -95350 ( 95350 )    | -101612 ( 101612 )
total financial assets at fair value                                                            | $ 600173            | $ 638513
total assets1                                                                                | $ 911507            | $ 938555
total level 3 financial assets as a percentage of total assets                                  | 4.4% ( 4.4 % )      | 5.0% ( 5.0 % )
total level 3 financial assets as a percentage of total financial assets at fair value          | 6.7% ( 6.7 % )      | 7.4% ( 7.4 % )
total level 1 financialliabilities                                                              | $ 68412             | $ 65994
total level 2 financial liabilities                                                             | 300583              | 318764
total level 3 financial liabilities                                                             | 12046               | 25679
cash collateral and counterparty netting                                                        | -25868 ( 25868 )    | -32760 ( 32760 )
total financial liabilities at fair value                                                       | $ 355173            | $ 377677
total level 3 financial liabilities as a percentage of total financial liabilities at fairvalue | 3.4% ( 3.4 % )      | 6.8% ( 6.8 % )


humana inc.
 notes to consolidated financial statements 2014 continued 15.
 stockholders 2019 equity dividends table provides details of dividend payments excluding dividend equivalent rights in 2016  2017 2018 under board approved quarterly cash dividend policy : payment amount per share amount ( in millions ).
 november 2 , 2018  board declared cash dividend of $ 0. 50 per share paid january 25 , 2019 to stockholders of record on december 31 , 2018  for aggregate amount of $ 68 million.
 declaration payment of future quarterly dividends at discretion board may be adjusted as business needs or market conditions change.
 february 2019  board declared cash dividend $ 0. 55 per share payable april 26 , 2019 to stockholders of record on march 29 , 2019.
 stock repurchases board of directors may authorize purchase of common shares.
 under share repurchase authorization shares may have been purchased at prevailing prices in open market by block purchases  through plans comply with rule 10b5-1 under securities exchange act of 1934  or in privately-negotiated transactions ( including accelerated share repurchase agreements with investment banks ) subject to regulatory restrictions on volume  pricing  timing.
 february 14 , 2017 board of directors authorized repurchase of up to $ 2. 25 billion of common shares expiring december 31 , 2017  exclusive of shares repurchased in connection with employee stock plans.
 february 16 , 2017 entered accelerated share repurchase agreement february 2017 asr with goldman , sachs & co.
 to repurchase $ 1. 5 billion of common stock as part of $ 2. 25 billion share repurchase authorized on february 14 , 2017.
february 22 , 2017  made payment $ 1. 5 billion to goldman sachs from available cash hand received initial delivery of 5. 83 million shares of common stock from goldman sachs based on current market price of humana common stock.
 payment to goldman sachs recorded as reduction to stockholders 2019 equity  $ 1. 2 billion increase in treasury stock reflected value of initial 5. 83 million shares received upon initial settlement $ 300 million decrease in capital in excess of par value reflected value of stock held back by goldman sachs pending final settlement of february 2017 asr.
 upon settlement february 2017 asr august 28 , 2017  received additional 0. 84 million shares determined by average daily volume weighted-average share price of common stock during term agreement $ 224. 81 , less discount subject to adjustments terms and conditions of february 2017 asr  bringing total shares received under program to 6. 67 million.
 upon settlement reclassified $ 300 million value of stock initially held back by goldman sachs from capital in excess of par value to treasury stock.
 subsequent to settlement february 2017 asr  repurchased additional 3. 04 million shares in open market utilizing remaining $ 750 million of $ 2. 25 billion authorization prior to expiration.
 december 14 , 2017  board of directors authorized repurchase of up to $ 3. 0 billion of common shares expiring december 31 , 2020  exclusive of shares repurchased in connection with employee stock plans.

paymentdate | amountper share | totalamount ( in millions )
----------- | --------------- | ---------------------------
2016        | $ 1.16          | $ 172
2017        | $ 1.49          | $ 216
2018        | $ 1.90          | $ 262


lump sum buyout cost of approximately $ 1. 1 million.
 total rent expense under these leases  included in consolidated statements of operations was approximately $ 893000 , $ 856000 $ 823000 for fiscal years ended march 31 , 2001 , 2002 2003 , respectively.
 during fiscal year ended march 31 , 2000  company entered into 36-month operating leases totaling approximately $ 644000 for lease of office furniture.
 leases ended in fiscal year 2003 company 2019s option furniture purchased at fair market value.
 rental expense recorded for these leases during fiscal years ended march 31, 2001  2002 2003 was approximately $ 215000 , $ 215000 and $ 127000 respectively.
 during fiscal 2000 , company entered 36-month capital lease for computer equipment and software for approximately $ 221000.
 lease ended in fiscal year 2003 at company 2019s option assets purchased at stipulated buyout price.
 future minimum lease payments under all non-cancelable operating leases as of march 31 , 2003 are approximately as follows ( in thousands ) :.
 company involved in legal and administrative proceedings and claims various types.
 litigation contains element uncertainty management  consultation with company 2019s general counsel believes outcome of each other proceedings or claims pending or known threatened will not have material adverse effect on company.
 7.
 stock option and purchase plans all stock options granted by company under plans granted at fair value of underlying common stock at date of grant.
 outstanding stock options  if not exercised expire 10 years from date of grant.
 1992 combination stock option plan ( combination plan ) , as amended adopted in september 1992 as combination restatement of company 2019s then outstanding incentive stock option plan and nonqualified plan.
total 2670859 options awarded from combination plan during ten-year restatement term ended may 1 , 2002.
 as of march 31 , 2003 1286042 options remain outstanding eligible for future exercise.
 options held by company employees become exercisable over five years.
 1998 equity incentive plan  ( ) adopted by company in august 1998.
 provides for grants of options to key employees  directors advisors consultants as incentive stock options or nonqualified stock options as determined by company 2019s board of directors.
 maximum of 1000000 shares of common stock may be awarded under this plan.
 options granted under equity incentive plan exercisable at such times subject to terms as board of directors may specify at time of each stock option grant.
 options outstanding under plan have vesting periods of 3 to 5 years from date of grant.
 2000 stock incentive plan  ( 2000 plan ) adopted by company in august 2000.
 plan provides for grants of options to key employees  directors advisors consultants to company or subsidiaries as incentive or nonqualified stock options as determined by company 2019s board of directors.
 up to 1400000 shares of common stock may be awarded under 2000 plan exercisable at such times subject to such terms as board of directors may specify at time of each stock option grant.
 options outstanding under 2000 plan generally vested 4 years from date of grant.
 company has nonqualified stock option plan for non-employee directors ( directors 2019 plan ).
 directors 2019 plan  adopted in july 1989 provides for grants of options to purchase shares of company 2019s common stock to non-employee directors.
 up to 400000 shares of common stock may be awarded under directors 2019 plan.
 options outstanding under directors 2019 plan have vesting periods of 1 to 5 years from date of grant.
consolidated financial statements continued ) march 31  2003 page 25

year ending march 31,               | operating leases
----------------------------------- | ----------------
2004                                | $ 781
2005                                | 776
2006                                | 776
2007                                | 769
2008                                | 772
thereafter                          | 1480
total future minimum lease payments | $ 5354


highly liquid securities with maturity three months or less at date of purchase are considered cash equivalents.
 securities with maturities greater than three months classified as available-for-sale considered short-term investments.
 carrying value of our interest-bearing instruments approximated fair value as of december 29 , 2012.
 interest rates under revolving credit facility are variable interest expense for periods credit facility utilized could be adversely affected by changes in interest rates.
 interest rates under revolving credit facility can fluctuate based on changes in market interest rates and interest rate margin varies based on consolidated leverage ratio.
 as of december 29, 2012 no outstanding balance on credit facility.
 see note 3 in notes to consolidated financial statements for additional description of credit facility.
 equity price risk convertible notes 2015 notes and 2013 notes include conversion and settlement provisions based on price of common stock at conversion or at maturity of notes.
 hedges and warrants associated with convertible notes include settlement provisions based on price of common stock.
 amount of cash we may required to pay  or number of shares we required to provide to note holders at conversion or maturity of notes determined by price of common stock.
 amount of cash or number of shares receive from hedge counterparties in connection with related hedges and number of shares required to provide warrant counterparties in connection with related warrants also determined by price of our common stock.
 upon expiration of 2015 warrants  cadence will issue shares of common stock to purchasers of warrants to extent stock price exceeds warrant strike price of $ 10. 78 at time.
 following table shows number of shares cadence would issue to 2015 warrant counterparties at expiration of warrants  assuming various cadence closing stock prices on dates of warrant expiration : shares ( in millions ).
prior expiration 2015 warrants  for calculating diluted earnings per share  diluted weighted-average shares outstanding increase when average closing stock price quarter exceeds $ 10. 78.
 additional description of 2015 notes 2013 notes  see note 3 in notes to consolidated financial statements 201cliquidity and capital resources 2014 other factors affecting liquidity capital resources , 201d under item 7 , 201cmanagement 2019s discussion analysis of financial condition results of operations. 201d

| shares ( in millions )
------- | ----------------------
$ 11.00 | 0.9
$ 12.00 | 4.7
$ 13.00 | 7.9
$ 14.00 | 10.7
$ 15.00 | 13.0
$ 16.00 | 15.1
$ 17.00 | 17.0
$ 18.00 | 18.6
$ 19.00 | 20.1
$ 20.00 | 21.4


4.
 acquisitions and dispositions acquisitions company makes acquisitions align with strategic business objectives.
 assets and liabilities of acquired entities recorded as of acquisition date at respective fair values included in consolidated balance sheet.
 purchase price allocation based on estimates of fair value of assets acquired and liabilities assumed.
 aggregate purchase price of acquisitions reduced for cash or cash equivalents acquired with acquisition.
 acquisitions during 2017 , 2016 2015 not significant to company 2019s consolidated financial statements ; pro forma financial information not presented.
 anios acquisition on february 1, 2017 company acquired anios for total consideration of $ 798. 3 million  including satisfaction of outstanding debt.
 anios had annualized pre-acquisition sales of approximately $ 245 million leading european manufacturer and marketer of hygiene and disinfection products for healthcare , food service  food and beverage processing industries.
 anios provides innovative product line expands solutions company providing complementary geographic footprint within healthcare market.
 during 2016  company deposited 20ac50 million in escrow account released back to company upon closing transaction in february 2017.
 note 5 recorded as restricted cash within other assets on consolidated balance sheet as of december 31 , 2016.
 company incurred certain acquisition and integration costs associated with transaction expensed reflected in consolidated statement of income.
 see note 3 for additional information related to company 2019s special ( gains ) and charges related to activities.
 components of cash paid for anios shown in following table.
 tangible assets primarily comprised of accounts receivable of $ 64. 8 million , property , plant and equipment of $ 24. 7 million and inventory of $ 29. 1 million.
 liabilities consist of deferred tax liabilities of $ 102.3 million current liabilities of $ 62. 5 million.
 customer relationships , trademarks technology amortized over weighted average lives of 20 , 17  11 years , respectively.
 goodwill of $ 511. 7 million from acquisition consists of synergies economies of scale expected through adding complementary geographies innovative products to company 2019s healthcare portfolio.
 goodwill allocated to institutional , healthcare specialty operating segments within global institutional reportable segment food & beverage life sciences operating segments within global industrial reportable segment.
 none of goodwill recognized expected be deductible for income tax purposes.

( millions )                             | 2017
---------------------------------------- | -------
tangible assets                          | $ 139.8
identifiable intangible assets           |
customer relationships                   | 252.0
trademarks                               | 65.7
other technology                         | 16.1
total assets acquired                    | 473.6
goodwill                                 | 511.7
total liabilities                        | 187.0
total consideration transferred          | 798.3
long-term debt repaid upon close         | 192.8
net consideration transferred to sellers | $ 605.5


weighted average grant date fair value of performance-based restricted stock units granted during years 2008 and 2007 was $ 84. 33 and $ 71. 72 , respectively.
 total fair value of units vested during 2009  2008 2007 was $ 33712 , $ 49387 $ 9181 , respectively.
 at september 30 , 2009  weighted average remaining vesting term of units is 1. 28 years.
 time-vested restricted stock units generally cliff vest three years after date of grant except for certain key executives including executive officers units vest one year following employee 2019s retirement.
 related share-based compensation expense recorded over requisite service period vesting period or key based on retirement eligibility.
 fair value of all time-vested restricted stock units is based on market value of company 2019s stock on date of grant.
 summary of time-vested restricted stock units outstanding as of september 30 , 2009  and changes during year ended is weighted average grant date fair value.
 grant date fair value of time-vested restricted stock units granted during years 2008 and 2007 was $ 84. 42 and $ 72. 20 , respectively.
 total fair value of time-vested stock units vested during 2009, 2008 2007 was $ 29535 , $ 26674 and $ 3392 ,.
 at september 30 , 2009  weighted average remaining vesting term of time-vested restricted stock units is 1. 71 years.
 amount unrecognized compensation expense for all non-vested share-based awards as of september 30 , 2009  is approximately $ 97034  expected to be recognized over weighted-average remaining life of approximately 2. 02 years.
september 30 , 2009 , 4295402 shares authorized for future grants under 2004 plan.
 company policy of satisfying share-based payments through open market purchases or shares in treasury.
 september 30 , 2009  company has sufficient shares in treasury to satisfy payments in 2010.
 other stock plans company has stock award plan allows for grants of common shares to certain key employees.
 distribution of 25% ( % ) or more of each award deferred until after retirement or involuntary termination deferred portion of award distributable in five equal annual installments.
 balance award distributable over five years from grant date subject to certain conditions.
 in february 2004  plan terminated future grants upon adoption of 2004 plan.
 at september 30 , 2009 and 2008 , awards for 114197 and 161145 shares outstanding.
 becton , dickinson and company notes to consolidated financial statements 2014 ( continued )

| stock units        | weighted average grant date fair value
-------------------------------- | ------------------ | --------------------------------------
balance at october 1             | 1570329            | $ 69.35
granted                          | 618679             | 62.96
distributed                      | -316839 ( 316839 ) | 60.32
forfeited or canceled            | -165211 ( 165211 ) | 62.58
balance at september 30          | 1706958            | $ 69.36
expected to vest at september 30 | 1536262            | $ 69.36