competitive supply aes 2019s competitive supply line of business consists of generating facilities sell electricity directly to wholesale customers in competitive markets.
 compared to contract generation segment these generating facilities generally sell less than 75% ( 75 % ) of their output pursuant to long-term contracts with pre-determined pricing provisions and/or sell into power pools , under shorter-term contracts or into daily spot markets.
 prices paid for electricity under short-term contracts and in spot markets are unpredictable and can be volatile.
 results of operations of aes 2019s competitive supply business are more sensitive to impact of market fluctuations in price of electricity , natural gas  coal and other raw materials.
 in united kingdom , txu europe entered administration in november 2002 no longer performing under contracts with drax and barry.
 sections financial condition results operations txu europe 2019s failure to perform under contracts has had a material adverse effect on results of operations of these businesses.
 two aes competitive supply businesses , aes wolf hollow .
 and granite ridge have fuel supply agreements with el paso merchant energy.
 an affiliate of el paso corp. encountered financial difficulties.
 company does not believe financial difficulties of el paso corp.
 will have a material adverse effect on el paso merchant energy. 2019s performance under supply agreement ; can be no assurance that a further deterioration in el paso corp 2019s financial condition will not have material adverse effect on ability of el paso merchant energy.
 to perform its obligations.
 while el paso corp 2019s financial condition may not have material adverse effect on el paso merchant energy.
 it could lead to a default under the aes wolf hollow .2019s fuel supply agreement  aes wolf hollow , l. p. 2019s lenders may declare default under credit agreements.
 aes wolf hollow  l. p.
 working with lenders to explore options to avoid default.
 revenues from our facilities distribute electricity to end-use customers generally subject to regulation.
 businesses required to obtain third party approval or confirmation of rate increases before passed on to customers through tariffs.
 these businesses comprise large utilities and growth distribution segments of company.
 revenues from contract generation and competitive supply not regulated.
 distribution of revenues between segments for years ended december 31 , 2002 , 2001 2000 is follows:.
 development costs certain subsidiaries affiliates of company ( domestic and non-u. s. ) in various stages of developing and constructing greenfield power plants  some not all have signed long-term contracts or similar arrangements for sale of electricity.
 successful completion depends upon overcoming substantial risks including risks failures of siting , financing  construction  permitting  governmental approvals potential for termination of power sales contract failure to meet certain milestones.
 as of december 31 , 2002 , capitalized costs for projects under development and in early stage construction were approximately $ 15 million capitalized costs for projects under construction were approximately $ 3. 2 billion.
 company believes

| 2002         | 2001         | 2000
------------------- | ------------ | ------------ | ------------
large utilities     | 36% ( 36 % ) | 21% ( 21 % ) | 22% ( 22 % )
growth distribution | 14% ( 14 % ) | 21% ( 21 % ) | 21% ( 21 % )
contract generation | 29% ( 29 % ) | 32% ( 32 % ) | 27% ( 27 % )
competitive supply  | 21% ( 21 % ) | 26% ( 26 % ) | 30% ( 30 % )


celanese corporation subsidiaries notes to consolidated financial statements continued ) 2022 amend material agreements governing bcp crystal 2019s indebtedness ; 2022 change business conducted by celanese holdings subsidiaries 2022 enter hedging agreements restrict dividends from subsidiaries.
 senior credit facilities require bcp crystal to maintain financial covenants : maximum total leverage ratio maximum bank debt leverage ratio minimum interest coverage ratio maximum capital expenditures limitation.
 maximum consolidated net bank debt to adjusted ebitda ratio  previously required under senior credit facilities eliminated when company amended facilities in january 2005.
 as of december 31, 2005 company in compliance with financial covenants related to debt agreements.
 maturation of company 2019s debt  including short term borrowings follows : ( in $ millions ).
 1 ) includes $ 2 million purchase accounting adjustment to assumed debt.
 17.
 benefit obligations pension obligations.
 pension obligations established for benefits payable in form of retirement  disability surviving dependent pensions.
 benefits vary according to legal  fiscal economic conditions of each country.
 commitments result from participation in defined contribution defined benefit plans u.
 benefits dependent on years of service employee 2019s compensation.
 supplemental retirement benefits to certain employees non-qualified for.
 tax purposes.
 separate trusts established for some non-qualified plans.
 defined benefit pension plans exist at certain locations in north america and europe.
 as of december 31 , 2005 company 2019s.
 qualified pension plan represented greater than 85% ( 85 % ) and 75% ( 75 % ) of celanese 2019s pension plan assets and liabilities.
 independent trusts or insurance companies administer majority of these plans.
 actuarial valuations for plans prepared annually.
company sponsors defined contribution plans in europe north america covering certain employees.
 employees may contribute plans company match contributions in varying amounts.
 contributions plans based on specified percentages of employee contributions aggregated $ 12 million for year ended decem- ber 31 , 2005  $ 8 million for nine months ended december 31 , 2004  $ 3 million for three months ended march 31 , 2004 $ 11 million for year ended december 31 , 2003.
 with acquisition of cag  purchaser agreed to pre-fund $ 463 million of pension obligations.
 during nine months ended december 31 , 2004 $ 409 million pre-funded to company 2019s pension plans.
 company contributed additional $ 54 million to non-qualified pension plan 2019s rabbi trusts in february 2005.
 company 2019s acquisition of vinamul and acetex  company assumed assets obligations related to acquired pension plans.
 company recorded liabilities of $ 128 million for pension plans.
 total pension assets acquired to $ 85 million.

| total ( in$ millions )
---------------- | ----------------------
2006             | 155
2007             | 29
2008             | 22
2009             | 40
2010             | 28
thereafter ( 1 ) | 3163
total            | 3437


( 2 ) for calculating ratio of earnings to fixed charges , earnings consist of earnings before income taxes minus income from equity investees plus fixed charges.
 fixed charges consist of interest expense and portion of rental expense representative of interest component of rental expense.
 for years ended december 31 , 2010 and 2009 , earnings for fixed charges inadequate to cover fixed charges by $ 37. 0 million and $ 461. 2 million , respectively.
 ( 3 ) ebitda is defined as consolidated net income ( loss ) before interest expense , income tax expense ( benefit ) , depreciation  and amortization.
 adjusted ebitda , measure defined in credit agreements calculated by adjusting ebitda for certain items of income and expense including following : non-cash equity-based compensation ; b goodwill impairment charges c sponsor fees certain consulting fees e debt-related legal and accounting costs f equity investment income and losses g certain severance and retention costs h gains and losses from early extinguishment of debt ; i gains and losses from asset dispositions outside ordinary course of business ; j ) non-recurring , extraordinary or unusual gains or losses or expenses.
 included reconciliation of ebitda and adjusted ebitda in table below.
 both ebitda and adjusted ebitda are considered non-gaap financial measures.
 non-gaap financial measure is a numerical measure of company 2019s performance , financial position or cash flows that excludes or includes amounts not normally included or excluded in most directly comparable measure calculated presented in accordance with gaap.
 non-gaap measures used by company may differ from similar measures used by other companies even similar terms used identify.
believe ebitda adjusted ebitda provide helpful information operating performance cash flows including ability to meet future debt service  capital expenditures working capital requirements.
 adjusted ebitda provides helpful information primary measure used in certain financial covenants in credit agreements.
 following unaudited table sets forth reconciliations of net income ( loss ) to ebitda ebitda to adjusted ebitda for periods presented:.
 ( i ) relates to unusual , non-recurring litigation matters.
 ( ii ) includes certain retention costs equity investment income  severance costs in 2009 gain related to sale of informacast software and equipment in 2009.

( in millions )                                        | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011 | years ended december 31 , 2010 | years ended december 31 , 2009
------------------------------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income ( loss )                                    | $ 132.8                        | $ 119.0                        | $ 17.1                         | $ -29.2 ( 29.2 )               | $ -373.4 ( 373.4 )
depreciation and amortization                          | 208.2                          | 210.2                          | 204.9                          | 209.4                          | 218.2
income tax expense ( benefit )                         | 62.7                           | 67.1                           | 11.2                           | -7.8 ( 7.8 )                   | -87.8 ( 87.8 )
interest expense net                                   | 250.1                          | 307.4                          | 324.2                          | 391.9                          | 431.7
ebitda                                                 | 653.8                          | 703.7                          | 557.4                          | 564.3                          | 188.7
non-cash equity-based compensation                     | 8.6                            | 22.1                           | 19.5                           | 11.5                           | 15.9
sponsor fees                                           | 2.5                            | 5.0                            | 5.0                            | 5.0                            | 5.0
consulting and debt-related professional fees          | 0.1                            | 0.6                            | 5.1                            | 15.1                           | 14.1
goodwill impairment                                    | 2014                           | 2014                           | 2014                           | 2014                           | 241.8
net loss ( gain ) on extinguishments of long-term debt | 64.0                           | 17.2                           | 118.9                          | -2.0 ( 2.0 )                   | 2014
litigation net ( i )                                   | -4.1 ( 4.1 )                   | 4.3                            | 2014                           | 2014                           | 2014
ipo- and secondary-offering related expenses           | 75.0                           | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( ii )                               | 8.6                            | 13.7                           | 11.4                           | 7.9                            | -0.1 ( 0.1 )
adjusted ebitda                                        | $ 808.5                        | $ 766.6                        | $ 717.3                        | $ 601.8                        | $ 465.4


anticipated expressed in forward-looking statements result of factors , including discuss under 201crisk factors 201d and elsewhere in form 10-k.
 read 201crisk factors 201d and 201cforward-looking statements. 201d executive overview general american water works company , inc.
 ( referred to as 201camerican water 201d or 201ccompany 201d ) is largest investor-owned united states water and wastewater utility company  measured by operating revenues and population served.
 approximately 6400 employees provide drinking water , wastewater water related services to estimated 15 million people in 47 states one canadian province.
 primary business involves ownership of water and wastewater utilities provide water wastewater services to residential , commercial  industrial other customers.
 regulated businesses provide services generally subject to economic regulation by state regulatory agencies in states in they operate.
 federal government and states also regulate environmental , health and safety water quality matters.
 regulated businesses provide services in 16 states serve approximately 3. 2 million customers based on number active service connections to water and wastewater networks.
 report results of these businesses in regulated businesses segment.
 also provide services not subject to economic regulation by state regulatory agencies.
 report results of these businesses in market-based operations segment.
 in 2014  continued execution of strategic goals.
 commitment to growth through investment in regulated infrastructure expansion of regulated customer base market-based operations  combined with operational excellence led to improvement in regulated operating efficiency  improved performance of market-based operations  provide increased value to customers and investors.
 during year  focused on growth , addressed regulatory lag  made efficient use of capital improved regulated operation and maintenance ( 201co&m 201d ) efficiency ratio.
2014 financial results year ended december 31 , 2014 continued increase net income making significant capital investment in infrastructure implementing operational efficiency improvements keep customer rates affordable.
 highlights of 2014 operating results compared to 2013 2012 include:.
 continuing operations income included 4 cents per diluted share of costs from freedom industries chemical spill in west virginia in 2014 included 14 cents per diluted share in 2013 related to tender offer.
 earnings from continuing operations adjusted for two items increased 10% ( 10 % ) or 22 cents per share mainly due to favorable operating results from regulated businesses segment due higher revenues lower operating expenses offset by higher depreciation expenses.
 contributing to overall increase income continuing operations lower interest expense in 2014 compared to same period 2013.

| 2014             | 2013             | 2012
------------------------------------------------------- | ---------------- | ---------------- | ----------------
income from continuing operations                       | $ 2.39           | $ 2.07           | $ 2.10
income ( loss ) from discontinued operations net of tax | $ -0.04 ( 0.04 ) | $ -0.01 ( 0.01 ) | $ -0.09 ( 0.09 )
diluted earnings per share                              | $ 2.35           | $ 2.06           | $ 2.01


table of contents primarily to certain undistributed foreign earnings for which no u. s.
 taxes provided because earnings intended to be indefinitely reinvested outside the u. s.
 lower effective tax rate in 2010 compared to 2009 due primarily to increase in foreign earnings on which u. s.
 income taxes not provided as earnings intended to be indefinitely reinvested outside u. s.
 as of september 25 , 2010 , company had deferred tax assets from deductible temporary differences , tax losses , tax credits of $ 2. 4 billion , deferred tax liabilities of $ 5. 0 billion.
 management believes likely not forecasted income , including income result of tax planning strategies , with future reversals of existing taxable temporary differences , will be sufficient to fully recover deferred tax assets.
 company will continue to evaluate realizability of deferred tax assets quarterly by assessing need for amount of valuation allowance.
 internal revenue service ( 201cirs 201d ) completed field audit of company 2019s federal income tax returns for years 2004 through 2006 proposed certain adjustments.
 company contested certain these adjustments through irs appeals office.
 irs currently examining years 2007 through 2009.
 all irs audit issues for years prior to 2004 resolved.
 during third quarter of 2010  company reached tax settlement with irs for years 2002 through 2003.
 company subject to audits by state , local , and foreign tax authorities.
 management believes adequate provision made for any adjustments from tax examinations.
 outcome of tax audits cannot be predicted with certainty.
 if issues addressed in company 2019s tax audits resolved not consistent with management 2019s expectations company could be required to adjust provision for income taxes in period such resolution occurs.
liquidity capital resources table presents financial information statistics for three years ended september 25 , 2010 ( in millions ) : as of september 25 , 2010  company had $ 51 billion in cash  cash equivalents marketable securities increase of $ 17 billion from september 26 , 2009.
 principal component of net increase was cash generated by operating activities of $ 18. 6 billion  partially offset by payments for acquisition of property  plant equipment of $ 2 billion payments business acquisitions  net of cash acquired  of $ 638 million.
 company 2019s marketable securities investment portfolio invested primarily in highly rated securities with minimum rating of single-a or equivalent.
 as of september 25 , 2010 and september 26 , 2009 , $ 30. 8 billion and $ 17. 4 billion  respectively of company 2019s cash  cash equivalents marketable securities held by foreign subsidiaries generally based in u. s.
 dollar-denominated holdings.
 company believes existing balances of cash  cash equivalents marketable securities sufficient to satisfy working capital needs capital asset purchases outstanding commitments liquidity requirements operations over next 12 months.

| 2010    | 2009    | 2008
----------------------------------------------- | ------- | ------- | -------
cash cash equivalents and marketable securities | $ 51011 | $ 33992 | $ 24490
accounts receivable net                         | $ 5510  | $ 3361  | $ 2422
inventories                                     | $ 1051  | $ 455   | $ 509
working capital                                 | $ 20956 | $ 20049 | $ 18645
annual operating cash flow                      | $ 18595 | $ 10159 | $ 9596


sales unregistered securities not applicable.
 repurchases equity securities table provides information regarding purchases equity securities during period from october 1  2017 to december 31 , 2017.
 total number of shares ( units ) purchased 1 average price paid per share unit ) 2 total number of shares units ) purchased as part of publicly announced plans or programs 3 maximum number ( approximate dollar value ) of shares units ) be purchased under plans or programs 3.
 1 included shares of common stock , par value $ 0. 10 per share , withheld under terms grants under employee stock-based compensation plans to offset tax withholding obligations occurred upon vesting and release of restricted shares ( 201cwithheld shares 201d ).
 repurchased 1474 withheld shares in october 2017  893 shares in november 2017 10639 withheld shares in december 2017  for total 13006 withheld shares during three-month period.
 2 average price per share for each months fiscal quarter and three-month period calculated by dividing sum of applicable period aggregate value of tax withholding obligations and aggregate amount paid for shares acquired under share repurchase program described in note 5 to consolidated financial statements  by sum of number of withheld shares and number of shares acquired in share repurchase program.
 3 in february 2017  board authorized share repurchase program to repurchase up to $ 300. 0 million , excluding fees  of common stock ( 201c2017 share repurchase program 201d ).
 on february 14 , 2018  announced board approved new share repurchase program to repurchase up to $ 300. 0 million , excluding fees of common stock.
new authorization in addition to amounts remaining for repurchase under 2017 share repurchase program.
 no expiration date associated with share repurchase programs.

| total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( orapproximate dollar value ) of shares ( or units ) that may yet be purchasedunder the plans orprograms3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 1231868                                       | $ 20.74                                   | 1230394                                                                                | $ 214001430
november 1 - 30 | 1723139                                       | $ 18.89                                   | 1722246                                                                                | $ 181474975
december 1 - 31 | 1295639                                       | $ 20.25                                   | 1285000                                                                                | $ 155459545
total           | 4250646                                       | $ 19.84                                   | 4237640                                                                                |


item 2 : properties information applied 2019s properties set forth below:.
 interrelation of applied 2019s operations  properties within country may be shared by segments operating within country.
 company 2019s headquarters offices in santa clara , california.
 products in semiconductor systems manufactured in santa clara , california ; austin , texas ; gloucester , massachusetts ; kalispell , montana ; rehovot , israel ; singapore.
 remanufactured equipment products in applied global services segment produced primarily in austin , texas.
 products in display and adjacent markets segment manufactured in alzenau , germany tainan , taiwan.
 other products manufactured in treviso , italy.
 applied owns and leases offices , plants warehouse locations in many locations throughout world including europe  japan  north america ( united states ) israel china  india  korea  southeast asia taiwan.
 facilities principally used for manufacturing ; research , development engineering ; marketing , sales customer support.
 applied owns approximately 269 acres of buildable land in montana , texas , california , israel italy accommodate additional building space.
 applied considers properties owns or leases as adequate to meet current and future requirements.
 applied regularly assesses size capability location of global infrastructure makes adjustments.

( square feet in thousands ) | united states | other countries | total
---------------------------- | ------------- | --------------- | -----
owned                        | 4530          | 2417            | 6947
leased                       | 1037          | 1341            | 2378
total                        | 5567          | 3758            | 9325


impairment tests for intangible assets as of july 31 , 2013 , 2012 2011 indicated no impairment charges required.
 estimated amortization expense for finite-lived intangible assets for each five succeeding years is as follows : ( in millions ).
 indefinite-lived acquired management contracts in july 2013  credit suisse etf transaction  company acquired $ 231 million of indefinite-lived management contracts.
 march 2012  claymore transaction  company acquired $ 163 million of indefinite-lived etp management contracts.
 finite-lived acquired management contracts in october 2013 mgpa transaction  company acquired $ 29 million of finite-lived management contracts with weighted-average estimated useful life of approximately eight years.
 september 2012  srpep transaction  company acquired $ 40 million of finite- lived management contracts with weighted-average estimated useful life of approximately 10 years.
.
 at march 31 , 2013  blackrock held approximately one- third economic equity interest in private national mortgage acceptance company , llc ( 201cpnmac 201d ) accounted for as equity method investment included in other assets on consolidated statements of financial condition.
 on may 8 , 2013  pennymac became sole managing member of pnmac initial public offering of pennymac ( 201cpennymac ipo 201d ).
 pennymac ipo blackrock recorded noncash nonoperating pre-tax gain of $ 39 million related to carrying value equity method investment.
 subsequent to pennymac company contributed 6. 1 million units of investment to new donor advised fund ( 201ccharitable contribution 201d ).
 fair value of charitable contribution was $ 124 million included in general and administration expenses on consolidated statements of income.
charitable contribution company recorded noncash nonoperating pre-tax gain of $ 80 million related to contributed investment tax benefit of approximately $ 48 million.
 carrying value and fair value of company 2019s remaining interest ( approximately 20% % ) or 16 million shares units ) was approximately $ 127 million and $ 273 million respectively at december 31 , 2013.
 fair value company 2019s interest reflected pennymac stock price at december 31 , 2013 ( level 1 input ).
 12.
 borrowings short-term borrowings carrying value short-term borrowings at december 31, 2012 included $ 100 million under 2012 revolving credit facility.
 2013 revolving credit facility.
 march 2011 company entered five-year $ 3. 5 billion unsecured revolving credit facility ( 201c2011 credit facility 201d ).
 march 2012 2011 credit facility amended to extend maturity date by one year to march 2017 april 2012 aggregate commitment increased to $ 3. 785 billion ( 201c2012 credit facility 201d ).
 march 2013 company 2019s credit facility amended to extend maturity date by one year to march 2018 aggregate commitment increased to $ 3. 990 billion ( 201c2013 credit facility 201d ).
 2013 credit facility permits company to request additional $ 1. 0 billion borrowing capacity subject to lender credit approval increasing overall size 2013 credit facility to aggregate principal amount not to exceed $ 4. 990 billion.
 interest on borrowings outstanding accrues at rate based on applicable london interbank offered rate plus spread.
 2013 credit facility requires company not to exceed maximum leverage ratio ( ratio net debt to earnings before interest  taxes depreciation amortization net debt equals total debt less unrestricted cash ) of 3 to 1  satisfied with ratio of less than 1 to 1 at december 31 , 2013.
2013 credit facility provides back- up liquidity funds working capital for general corporate purposes investment opportunities.
 at december 31 , 2013  company had no amount outstanding under 2013 credit facility.
 commercial paper program.
 october 14 , 2009  blackrock established commercial paper program ( 201ccp program 201d ) company could issue unsecured commercial paper notes ( 201ccp notes 201d ) on private placement basis up to maximum aggregate amount outstanding of $ 3. 0 billion.
 may 13 , 2011  blackrock increased maximum aggregate amount borrowed under cp program to $ 3. 5 billion.
 may 17 , 2012  blackrock increased maximum aggregate amount to $ 3. 785 billion.
 in april 2013  blackrock increased maximum aggregate amount for company issue unsecured cp notes private-placement basis up to maximum aggregate amount outstanding of $ 3. 990 billion.
 commercial paper program supported by 2013 credit facility.
 december 31 , 2013 and 2012  blackrock had no cp notes outstanding.

year | amount
---- | ------
2014 | $ 156
2015 | 126
2016 | 91
2017 | 74
2018 | 24


initial estimate of fraud losses , fines charges on understanding of rules operating regulations published by networks preliminary communications with networks.
 now reached resolution with made payments to networks  resulting in charges less than initial estimates.
 primary difference between initial estimates and final charges relates to lower fraud related costs attributed to this event than previously expected.
 following table reflects activity in accrual for fraud losses , fines other charges for twelve months ended may 31 , 2013 ( in thousands ) :.
 insured under policies provided coverage of certain costs associated with this event.
 policies provided total of $ 30. 0 million in policy limits contained various sub-limits of liability other terms , conditions limitations , including $ 1. 0 million deductible per claim.
 as of fiscal year 2013  received assessments from certain networks submitted additional claims to insurers recorded $ 20. 0 million in additional insurance recoveries based on negotiations with insurers.
 will record receivables for additional recoveries in periods determine such recovery is probable amount can be reasonably estimated.
 class action of processing system intrusion filed against us on april 4 , 2012 by natalie willingham ( individually on behalf of putative nationwide class ) ( 201cplaintiff 201d ).
.
 willingham alleged we failed to maintain reasonable adequate procedures to protect her personally identifiable information ( 201cpii 201d ) claims resulted in two fraudulent charges on her credit card in march 2012.
.
 willingham asserted we failed to timely notify public of data breach.
 based on allegations.
willingham asserted claims for negligence , violation of federal stored communications act willful violation of fair credit reporting act  negligent violation fair credit reporting act  violation of georgia 2019s unfair and deceptive trade practices act , negligence per se breach of third-party beneficiary contract breach of implied contract.
.
 willingham sought unspecified damages and injunctive relief.
 lawsuit filed in united states district court for northern district of georgia.
 on may 14 , 2012  filed motion to dismiss.
 on july 11 , 2012 plaintiff filed motion for leave to amend complaint july 16 , 2012 court granted motion.
 filed amended complaint on july 16 , 2012.
 amended complaint not add new causes of action.
 added two new named plaintiffs ( nadine and robert hielscher ) ( together with plaintiff  201cplaintiffs 201d ) dropped plaintiff 2019s claim for negligence.
 on august 16 , 2012 filed motion to dismiss plaintiffs 2019 amended complaint.
 plaintiffs filed response in opposition to motion to dismiss on october 5, 2012 filed reply brief on october 22 , 2012.
 magistrate judge issued report and recommendation recommending dismissal of all plaintiffs 2019 claims with prejudice.
 plaintiffs agreed to voluntarily dismiss lawsuit with prejudice each party bearing own fees and costs.
 only consideration exchanged by parties in connection with plaintiffs 2019 voluntary dismissal with prejudice of lawsuit.
 lawsuit dismissed with prejudice on march 6 , 2013.
 note 3 2014settlement processing assets and obligations designated as merchant service provider by mastercard independent sales organization by visa.
designations dependent upon member clearing banks ( 201cmember 201d ) sponsoring us our adherence to standards networks.
 have primary financial institution sponsors in various markets we facilitate payment transactions with have sponsorship or depository clearing agreements.
 agreements allow us to route transactions under member banks 2019 control identification numbers to clear credit card transactions through mastercard visa.
 in certain markets members in various payment networks allowing us to process fund transactions without third-party sponsorship.

balance at may 31 2012 | $ 67436
---------------------- | ----------------
adjustments            | -31781 ( 31781 )
subtotal               | 35655
payments               | -35655 ( 35655 )
balance at may 31 2013 | $ 2014


packaging corporation of america notes to consolidated financial statements continued ) december 31 , 2006 4.
 stock-based compensation continued ) as of december 31 , 2006 $ 8330000 of total unrecognized compensation costs related to restricted stock awards.
 company expects to recognize cost of stock awards over weighted-average period of 2. 5 years.
 5.
 accrued liabilities components accrued liabilities:.
 6.
 employee benefit plans and postretirement benefits connection with acquisition from pactiv  pca and pactiv entered human resources agreement granted pca employees continued participation in pactiv pension plan for up to five years following closing acquisition for agreed upon fee.
 effective january 1 , 2003  pca adopted mirror-image pension plan for eligible hourly employees succeed pactiv pension plan pca hourly employees participated though december 31 , 2002.
 pca pension plan for hourly employees recognizes service earned under pca plan and prior pactiv plan.
 benefits earned under pca plan reduced by retirement benefits earned under pactiv plan through december 31 , 2002.
 all assets and liabilities associated with benefits earned through december 31 , 2002 for hourly employees and retirees of pca retained by pactiv plan.
 effective may 1, 2004  pca adopted grandfathered pension plan for certain salaried employees previously participated in pactiv pension plan.
 benefit formula for new pca pension plan for salaried employees comparable to pactiv plan except pca plan uses career average base pay benefit formula in lieu of final average base pay.
 pca pension plan for salaried employees recognizes service earned under both pca plan and prior pactiv plan.
 benefits earned under pca plan reduced by retirement benefits earned under pactiv plan through april 30 , 2004.
assets liabilities associated with benefits earned through april 30, 2004 for salaried employees retirees of pca retained by pactiv plan.
 pca maintains supplemental executive retirement plan ( 201cserp 201d ) augments pension benefits for eligible executives excluding ceo earned under pca pension plan for employees.
 benefits determined using same formula as pca pension plan in addition to counting

( in thousands )                                | december 31 , 2006 | december 31 , 2005
----------------------------------------------- | ------------------ | ------------------
bonuses and incentives                          | $ 29822            | $ 21895
medical insurance and workers 2019 compensation | 18279              | 18339
vacation and holiday pay                        | 14742              | 14159
customer volume discounts and rebates           | 13777              | 13232
franchise and property taxes                    | 8432               | 8539
payroll and payroll taxes                       | 5465               | 4772
other                                           | 9913               | 5889
total                                           | $ 100430           | $ 86825


2016 compared to 2015 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses  gas purchased for resale  2 ) purchased power expenses  3 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2016 to 2015.
 amount ( in millions ).
 retail electric price variance due to $ 19. 4 million net annual increase in revenues  approved by mpsc  effective with first billing cycle of july 2016 increase in revenues collected through storm damage rider. see note 2 to financial statements for discussion of formula rate plan storm damage rider.
 volume/weather variance due to increase of 153 gwh , or 1% ( 1 % ), in billed electricity usage including increase in industrial usage offset by effect of less favorable weather on residential and commercial sales.
 increase in industrial usage due to expansion projects in pulp and paper industry  increased demand for existing customers in metals industry new customers in wood products industry.
 net wholesale revenue variance due to entergy mississippi 2019s exit from system agreement in november 2015.
 reserve equalization revenue variance due to absence of reserve equalization revenue compared to 2015 from entergy mississippi 2019s exit from system agreement in november income statement variances 2017 compared to 2016 operation and maintenance expenses decreased due to : 2022 decrease of $ 12 million in fossil-fueled generation expenses due to lower long-term service agreement costs lower scope of work done during plant outages in 2017 compared to 2016 ; 2022 decrease of $ 3. 6 million in storm damage provisions.
 see note 2 to financial statements for discussion on storm cost recovery.
 decrease partially offset by increase of $ 4. 8 million in energy efficiency costs and increase of $ 2.7 million compensation benefits costs due to higher incentive-based compensation accruals 2017 compared prior year.
 entergy mississippi , inc.
 management 2019s financial discussion analysis

| amount ( in millions )
--------------------- | ----------------------
2015 net revenue      | $ 696.3
retail electric price | 12.9
volume/weather        | 4.7
net wholesale revenue | -2.4 ( 2.4 )
reserve equalization  | -2.8 ( 2.8 )
other                 | -3.3 ( 3.3 )
2016 net revenue      | $ 705.4


15.
 leases january 1996  company entered lease agreement with unrelated third party for new corporate office facility company occupied february 1997.
 may 2004  company entered first amendment to lease agreement effective january 1 , 2004.
 lease extended from original period 10 years option for five additional years to 18 years from inception date option for five additional years.
 company incurred lease rental expense related facility $ 1. 3 million in 2008 , 2007 2006.
 future minimum lease payments are $ 1. 4 million per annum from january 1, 2009 to december 31 , 2014.
 future minimum lease payments from january 1, 2015 through december 31, 2019 determined based on prevailing market rental rates at time extension if elected.
 amended lease provided for lessor to reimburse company for up to $ 550000 in building refurbishments completed through march 31 , 2006.
 amounts recorded as reduction of lease expense over remaining term of lease.
 company entered into various noncancellable operating leases for equipment and office space.
 office space lease expense totaled $ 9. 3 million , $ 6. 3 million $ 4. 7 million for years ended december 31, 2008 , 2007 2006 .
 future minimum lease payments under noncancellable operating leases for office space in effect at december 31 , 2008 are $ 8. 8 million in 2009 , $ 6. 6 million in 2010 , $ 3. 0 million in 2011 , $ 1. 8 million in 2012 $ 1. 1 million in 2013.
 16.
 royalty agreements company entered into various renewable , nonexclusive license agreements company granted access to licensor 2019s technology right to sell technology in company 2019s product line.
royalties payable to developers software at various rates amounts based upon unit sales or revenue.
 royalty fees reported in cost of goods sold were $ 6. 3 million , $ 5. 2 million $ 3. 9 million for years ended december 31, 2008  2007 2006  respectively.
 17.
 geographic information revenue to external customers attributed to individual countries based location customer.
 revenue by geographic area as follows:.

( in thousands )    | year ended december 31 , 2008 | year ended december 31 , 2007 | year ended december 31 , 2006
------------------- | ----------------------------- | ----------------------------- | -----------------------------
united states       | $ 151688                      | $ 131777                      | $ 94282
germany             | 68390                         | 50973                         | 34567
japan               | 66960                         | 50896                         | 35391
canada              | 8033                          | 4809                          | 4255
other european      | 127246                        | 108971                        | 70184
other international | 56022                         | 37914                         | 24961
total revenue       | $ 478339                      | $ 385340                      | $ 263640


of first and second liens charge-off amounts for pool proportionate to composition of first and second liens pool.
 experience ratio of first to second lien loans consistent over time represented in our pools for roll-rate calculations.
 our variable-rate home equity lines of credit have seven or ten year draw period followed by 20 year amortization term.
 during draw period home equity lines of credit where borrowers pay interest only and home equity lines where borrowers pay principal and interest.
 based upon outstanding balances at december 31 , 2012 table presents periods when home equity lines of credit draw periods scheduled to end.
 table 39 : home equity lines of credit 2013 draw period end in millions interest product principal interest product.
 includes approximately $ 166 million , $ 208 million , $ 213 million, $ 61 million, $ 70 million and $ 526 million of home equity lines of credit with balloon payments with draw periods scheduled to end in 2013 , 2014, 2015 , 2016 , 2017 2018.
 view home equity lines of credit where borrowers paying principal and interest under draw period as less risky than those borrowers paying interest only borrowers have demonstrated ability to make level of principal and interest payments.
 based upon outstanding balances excluding purchased impaired loans at december 31 , 2012  for home equity lines of credit for which borrower can no longer draw (. draw period ended or borrowing privileges terminated ) approximately 3. 86% ( 3. 86 % ) were 30-89 days past due approximately 5. 96% ( 5. 96 % ) were greater than or equal to 90 days past due.
 when borrower becomes 60 days past due  we terminate borrowing privileges privileges not reinstated.
we continue collection/recovery processes  may include loss mitigation loan modification resulting in loan classified as tdr.
 see note 5 asset quality in notes to consolidated financial statements in item 8 report for additional information.
 loan modifications troubled debt restructurings consumer loan modifications we modify loans under government and pnc-developed programs based commitment to help eligible homeowners and borrowers avoid foreclosure  where appropriate.
 initially borrower evaluated for modification under government program.
 if borrower not qualify under government program, borrower then evaluated under pnc program.
 our programs utilize temporary and permanent modifications typically reduce interest rate , extend term/or defer principal.
 temporary and permanent modifications under programs involving change to loan terms generally classified as tdrs.
 certain payment plans and trial payment arrangements do not include contractual change to loan terms may be classified as tdrs.
 additional detail on tdrs discussed below in note 5 asset quality in notes to consolidated financial statements in item 8 report.
 temporary modification  with term between three and 60 months  involves change in original loan terms for period time reverts to calculated exit rate for remaining term of loan as of specific date.
 permanent modification  with term greater than 60 months , is modification in terms of original loan are changed.
 permanent modifications include government-created home affordable modification program ( hamp ) or pnc-developed hamp-like modification programs.
 for consumer loan programs , residential mortgages and home equity loans lines  will enter into temporary modification when borrower has indicated temporary hardship and willingness to bring current delinquent loan balance.
 examples of this situation often include delinquency due to illness or death in family , or loss of employment.
permanent modifications entered when confirmed borrower not possess income necessary to continue making loan payments at current amount  expectation is payments at lower amounts can be made.
 residential mortgage and home equity loans and lines modified with changes in terms for up to 60 months  majority involve periods three to 24 months.
 monitor success rates delinquency status of loan modification programs to assess effectiveness in serving customers 2019 needs while mitigating credit losses.
 following tables provide number of accounts and unpaid principal balance of modified consumer real estate related loans number of accounts and unpaid principal balance of modified loans 60 days or more past due as of six months  nine months twelve months fifteen months after modification date.
 pnc financial services group , inc.
 2013 form 10-k 91

in millions         | interestonlyproduct | principalandinterestproduct
------------------- | ------------------- | ---------------------------
2013                | $ 1338              | $ 221
2014                | 2048                | 475
2015                | 2024                | 654
2016                | 1571                | 504
2017                | 3075                | 697
2018 and thereafter | 5497                | 4825
total ( a )         | $ 15553             | $ 7376


2011  handling 3% ( 3 % ) increase in carloads.
 maintenance activities weather disruptions higher volume levels led to 4% ( 4 % ) decrease in average train speed in 2010 compared to record 2009.
 average terminal dwell time 2013 average terminal dwell time is average time rail car spends at terminals.
 lower average terminal dwell time improves asset utilization service.
 average terminal dwell time increased 3% ( 3 % ) in 2011 compared to 2010.
 additional volume  weather challenges track replacement programs shift of traffic mix to more manifest shipments additional terminal processing contributed to increase.
 average terminal dwell time increased 2% ( 2 % ) in 2010 compared to 2009  driven by network plan to increase length of trains improve efficiency resulted in higher terminal dwell time for some cars.
 average rail car inventory 2013 inventory is daily average number of rail cars on lines including rail cars in storage.
 lower average rail car inventory reduces congestion yards sidings increases train speed reduces average terminal dwell time improves rail car utilization.
 average rail car inventory decreased slightly in 2011 compared to 2010  adjust size of freight car fleet.
 average rail car inventory decreased 3% ( 3 % ) in 2010 compared to 2009 handled 13% ( 13 % ) increase in carloads period compared to 2009.
 maintained more freight cars off-line retired old freight cars drove decrease.
 gross and revenue ton-miles 2013 gross ton-miles calculated by multiplying weight of loaded and empty freight cars by number of miles hauled.
 revenue ton-miles calculated by multiplying weight of freight by number of tariff miles.
gross revenue-ton-miles increased 5% ( 5 % ) 2011 compared to 2010 driven by 3% ( 3 % ) increase in carloads mix changes to heavier commodity groups notably 5% ( 5 % ) increase in energy shipments.
 gross revenue-ton-miles increased 10% ( 10 % ) and 9% ( 9 % )  2010 compared 2009 due to 13% ( 13 % ) increase in carloads.
 commodity mix changes ( notably automotive shipments ) drove variance in year-over-year growth between gross ton-miles revenue ton-miles carloads.
 operating ratio 2013 operating ratio operating expenses reflected percentage of operating revenue.
 ratio increased 0. 1 points to 70. 7% ( 70. 7 % ) in 2011 versus 2010.
 higher fuel prices  inflation weather related costs offset by core pricing gains productivity initiatives drove increase.
 operating ratio improved 5. points to 70. 6% ( 70. 6 % ) in 2010 1. 3 points to 76. 1% ( 76. 1 % ) in 2009.
 leveraging volume increases core pricing gains productivity initiatives drove improvement 2010 offset impact of higher fuel prices.
 employees 2013 employee levels up 5% ( 5 % ) in 2011 versus 2010 driven by 3% ( 3 % ) increase in volume levels higher number of trainmen , engineers  yard employees receiving training increased work on capital projects.
 employee levels down 1% ( 1 % ) in 2010 compared to 2009 despite 13% ( 13 % ) increase in volume levels.
 leveraged additional volumes through network efficiencies productivity initiatives.
 managed growth full- time-equivalent train engine force levels less than half of carload growth in 2010.
 other operating functions support organizations reduced full-time-equivalent force levels benefiting from productivity initiatives.
customer satisfaction index 2013 customer satisfaction survey asks customers rate satisfied with our performance last 12 months on variety attributes.
 higher score indicates higher customer satisfaction.
 improvement in survey results 2011 reflects customer recognition of our service quality supported by capital investment program.
 return on average common shareholders 2019 equity millions  except percentages 2011 2010 2009.

millions except percentages                      | 2011             | 2010             | 2009
------------------------------------------------ | ---------------- | ---------------- | ----------------
net income                                       | $ 3292           | $ 2780           | $ 1890
average equity                                   | $ 18171          | $ 17282          | $ 16058
return on average commonshareholders 2019 equity | 18.1% ( 18.1 % ) | 16.1% ( 16.1 % ) | 11.8% ( 11.8 % )


53management's discussion analysis of financial condition results of operations to borrow funds under 5-year credit facility company must compliance with conditions covenants representations in agreements.
 company was in compliance with terms 5-year credit facility at december 31 , 2006.
 company never borrowed under domestic revolving credit facilities.
 utilization of non-u.
 credit facilities dependent on company's ability to meet conditions at time borrowing requested.
 contractual obligations  guarantees  purchase commitments contractual obligations summarized in table are company's obligations commitments to make future payments under debt obligations ( earliest exercise rights by holders ) lease payment obligations purchase obligations as of december 31 , 2006.
 payments due by period ( 1 ) ( in millions ) total 2007 2008 2009 2010 2011.
 1 amounts represent firm  non-cancelable commitments.
 debt obligations : at december 31 , 2006  company's long-term debt obligations  including current maturities unamortized discount issue costs totaled $ 4. 1 billion  compared to $ 4. 0 billion at december 31 , 2005.
 table of all outstanding long-term debt securities in note 4 , ""debt and credit facilities'' to company's consolidated financial statements.
 lease obligations : company owns most of major facilities but lease certain office  factory warehouse space  land  information technology equipment under principally non-cancelable operating leases.
 at december 31 , 2006 future minimum lease obligations  net of minimum sublease rentals totaled $ 2. 3 billion.
 rental expense  net of sublease income was $ 241 million in 2006  $ 250 million in 2005 $ 205 million in 2004.
purchase obligations : company entered into agreements for purchase of inventory , license of software , promotional agreements  research and development agreements are firm commitments not cancelable.
 longest of agreements extends through 2015.
 total payments expected to under these agreements total $ 1. 0 billion.
 commitments under other long-term agreements : company entered into certain long-term agreements to purchase software , components  supplies materials from suppliers.
 most agreements extend for periods one to three years ( three to five years for software ).
 generally these agreements do not obligate company to make purchases many permit company to terminate agreement with advance notice ( usually from 60 to 180 days ).
 if company to terminate agreements liable for certain termination charges, typically based on work performed supplier on-hand inventory and raw materials attributable to canceled orders.
 company's liability only arise in event it terminates agreements for reasons other than ""cause. '' company also enters into arrangements for sourcing of supplies and materials with minimum purchase commitments take-or-pay obligations.
 majority of minimum purchase obligations under contracts are over life of contract opposed to year-by-year take-or-pay.
 if agreements terminated at december 31 , 2006  company's obligation would not have significant.
 company does not anticipate cancellation of agreements in future.
 subsequent to end of 2006 company entered into take-or-pay arrangements with suppliers through may 2009 with minimum purchase obligations of $ 2. 2 billion during period.
 company estimates purchases during period exceed minimum obligations.
 company outsources certain corporate functions, benefit administration and information technology-related services.
 these contracts expected to expire in 2013.
 total remaining payments under contracts are approximately $ 1.3 billion seven years contracts %%transmsg*** transmitting job : c11830 pcn : 055000000 *** %%pcmsg| |00030|yes|no|02/28/2007 13:05|0|1|page valid  no graphics -- color : n|

( in millions )               | payments due by period ( 1 ) total | payments due by period ( 1 ) 2007 | payments due by period ( 1 ) 2008 | payments due by period ( 1 ) 2009 | payments due by period ( 1 ) 2010 | payments due by period ( 1 ) 2011 | payments due by period ( 1 ) thereafter
----------------------------- | ---------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------------
long-term debt obligations    | $ 4134                             | $ 1340                            | $ 198                             | $ 4                               | $ 534                             | $ 607                             | $ 1451
lease obligations             | 2328                               | 351                               | 281                               | 209                               | 178                               | 158                               | 1151
purchase obligations          | 1035                               | 326                               | 120                               | 26                                | 12                                | 12                                | 539
total contractual obligations | $ 7497                             | $ 2017                            | $ 599                             | $ 239                             | $ 724                             | $ 777                             | $ 3141


icos corporation january 29, 2007  acquired outstanding common stock of icos corporation ( icos ) , partner in lilly icos llc joint venture for manufacture and sale of cialis for treatment of erectile dysfunction.
 acquisition brought full value of cialis enabled realize operational effi ciencies in further development , marketing  selling of product.
 aggregate cash purchase price of approximately $ 2. 3 bil- lion fi nanced through borrowings.
 acquisition accounted for as business combination under purchase method of accounting resulting in goodwill of $ 646. 7 million.
 no portion goodwill deductible for tax purposes.
 determined estimated fair values for assets acquired liabilities assumed as of date of acquisition.
 estimated fair value at january 29 , 2007.
 intangible asset amortized over remaining expected patent lives of cialis in each country ; patent expiry dates range from 2015 to 2017.
 new indications for formulations of cialis compound in clinical testing at time acquisition represented approximately 48 percent of estimated fair value of acquired ipr&d.
 remaining value of acquired ipr&d represented several other products in development no one asset comprising signifi cant por- tion of this value.
 discount rate used in valuing acquired ipr&d projects was 20 percent charge for acquired ipr&d of $ 303. 5 million recorded in fi rst quarter of 2007 not deductible for tax purposes.
 other acquisitions during second quarter of 2007 acquired all outstanding stock of hypnion , inc.
 privately held neuroscience drug discovery company focused on sleep disorders , and ivy animal health , inc.
 ivy privately held applied research and pharmaceutical product development company focused on animal health industry for $ 445. 0 million in cash.
acquisition of hypnion provided us broader presence in sleep disorder research and ownership of hy10275 , a novel phase ii compound with dual mechanism of action promoting better sleep onset and sleep maintenance.
 this was hypnion 2019s only signifi cant asset.
 for acquisi- tion we recorded acquired ipr&d charge of $ 291. 1 million  not deductible for tax purposes.
 hypnion was development-stage company transaction accounted for as acquisition of assets than business combination goodwill not recorded.
 acquisition of ivy provides us with products complement our animal health business.
 acquisition accounted for as business combination under purchase method of accounting.
 allocated $ 88. 7 million of purchase price to other identifi intangible assets  primarily related to marketed products , $ 37. 0 million to acquired ipr&d  $ 25. 0 million to goodwill.
 other intangible assets being amortized over estimated remaining useful lives of 10 to 20 years.
 $ 37. 0 million allocated to acquired ipr&d charged to expense in second quarter of 2007.
 goodwill from acquisition fully allocated to animal health business segment.
 amount allocated to each intangible assets acquired  including goodwill of $ 25. 0 million and acquired ipr&d of $ 37. 0 million , was deductible for tax purposes.
 product acquisitions in june 2008 entered licensing and development agreement with transpharma medical ltd.
 ( trans- pharma ) to acquire rights to its product and related drug delivery system for treatment of osteoporosis.
 product  administered transdermally using transpharma 2019s proprietary technology was in phase ii clinical testing  no alternative future use.
arrangement , we gained non-exclusive access to trans- pharma 2019s viaderm drug delivery system for product.
 many development-phase products , launch of

cash and short-term investments              | $ 197.7
-------------------------------------------- | ----------------
developed product technology ( cialis ) 1    | 1659.9
tax benefit of net operating losses          | 404.1
goodwill                                     | 646.7
long-term debt assumed                       | -275.6 ( 275.6 )
deferred taxes                               | -583.5 ( 583.5 )
other assets and liabilities 2014 net        | -32.1 ( 32.1 )
acquired in-process research and development | 303.5
total purchase price                         | $ 2320.7


valuation allowance totaling $ 43. 9 million , $ 40. 4 million $ 40. 1 million as of 2012 , 2011 2010 year end established for deferred income tax assets primarily related to certain subsidiary loss carryforwards may not be realized.
 realization of net deferred income tax assets dependent on generating sufficient taxable income prior to expiration.
 realization not assured management believes more likely net deferred income tax assets will be realized.
 amount assets realizable could change if estimates of future taxable income during carryforward period fluctuate.
 reconciliation of beginning and ending amounts of unrecognized tax benefits for 2012 , 2011 ( amounts in millions ) 2012 2011 2010.
 of $ 6. 8 million , $ 11. 0 million $ 11. 1 million of unrecognized tax benefits as of 2012 , 2011 2010 year end  approximately $ 4. 1 million , $ 9. 1 million $ 11. 1 million  would impact effective income tax rate if recognized.
 interest and penalties related to unrecognized tax benefits recorded in income tax expense.
 during 2012 and 2011  company reversed net $ 0. 5 million and $ 1. 4 million  of interest and penalties to income associated with unrecognized tax benefits.
 as of 2012 , 2011 and 2010 year end  company provided for $ 1. 6 million , $ 1. 6 million $ 2. 8 million  of accrued interest and penalties related to unrecognized tax benefits.
 unrecognized tax benefits related accrued interest penalties included in long-term liabilities on accompanying consolidated balance sheets.
 snap-on and subsidiaries file income tax returns in united states and various state  local and foreign jurisdictions.
possible unrecognized tax benefits may be settled with taxing authorities or statutes of limitations may lapse within next 12 months causing snap-on 2019s gross unrecognized tax benefits to decrease zero to $ 2. 4 million.
 over next 12 months snap-on anticipates taking uncertain tax positions on tax returns for related tax benefit not meet recognition threshold.
 snap-on 2019s gross unrecognized tax benefits may increase zero to $ 1. 6 million over next 12 months for uncertain tax positions expected taken in future tax filings.
 few exceptions snap-on no longer subject to.
 federal and state/local income tax examinations by tax authorities for years prior to 2008, snap no longer subject to non-u. s.
 income tax examinations by tax authorities for years prior to 2006.
 undistributed earnings of all non-u.
 subsidiaries totaled $ 492. 2 million , $ 416. 4 million and $ 386. 5 million as of 2012, 2011 and 2010 year end .
 snap-on not provided deferred taxes on these undistributed earnings considers undistributed earnings to permanently invested.
 determination of amount unrecognized deferred income tax liability related to these earnings not practicable.
 2012 annual report 83

( amounts in millions )                                  | 2012         | 2011         | 2010
-------------------------------------------------------- | ------------ | ------------ | ------------
unrecognized tax benefits at beginning of year           | $ 11.0       | $ 11.1       | $ 17.5
gross increases 2013 tax positions in prior periods      | 0.7          | 0.5          | 0.6
gross decreases 2013 tax positions in prior periods      | -4.9 ( 4.9 ) | -0.4 ( 0.4 ) | -0.4 ( 0.4 )
gross increases 2013 tax positions in the current period | 1.2          | 2.8          | 3.1
settlements with taxing authorities                      | 2013         | -1.2 ( 1.2 ) | -9.5 ( 9.5 )
increase related to acquired business                    | 2013         | 2013         | 0.4
lapsing of statutes of limitations                       | -1.2 ( 1.2 ) | -1.8 ( 1.8 ) | -0.6 ( 0.6 )
unrecognized tax benefits at end of year                 | $ 6.8        | $ 11.0       | $ 11.1


leveraged performance units during fiscal 2015  certain executives granted performance units refer as leveraged performance units , or lpus.
 lpus contain market condition based on relative stock price growth over three-year performance period.
 lpus contain minimum threshold performance if not met result in no payout.
 lpus contain maximum award opportunity fixed dollar and fixed number of shares.
 after three-year performance period one-third of earned units converts to unrestricted common stock.
 remaining two-thirds convert to restricted stock vest in equal installments on each first two anniversaries of conversion date.
 recognize share-based compensation expense based on grant date fair value of lpus  determined by monte carlo model  on straight-line basis over requisite service period for each separately vesting portion of lpu award.
 total shareholder return units before fiscal 2015  certain executives granted total shareholder return ( 201ctsr 201d ) units performance-based restricted stock units earned based on total shareholder return over three-year performance period compared to companies in s&p 500.
 once performance results certified, tsr units convert into unrestricted common stock.
 depending on performance grantee may earn up to 200% ( 200 % ) of target number of shares.
 target number of tsr units for each executive set by compensation committee.
 recognize share-based compensation expense based on grant date fair value of tsr units  as determined by monte carlo model on straight-line basis over vesting period.
 following table summarizes changes in unvested share-based awards for years ended may 31 , 2016 and 2015 ( shares in thousands ) : shares weighted-average grant-date fair value.
including restricted stock  performance units tsr units total fair value of share- based awards vested during years ended may 31 , 2016 , 2015 2014 was $ 17. 4 million , $ 15. 0 million $ 28. 7 million  respectively.
 for awards recognized compensation expense of $ 28. 8 million , $ 19. 8 million $ 28. 2 million in years ended may 31 , 2016  2015 2014 .
 as of may 31 , 2016 $ 42. 6 million of unrecognized compensation expense related to unvested share-based awards expect to recognize over weighted-average period of 1. 9 years.
 share-based award plans provide for accelerated vesting under certain conditions.
 employee stock purchase plan plan sale of 4. 8 million shares of common stock authorized.
 employees may designate up to $ 25000 or 20% ( 20 % ) of annual compensation for purchase of common stock.
 price for shares purchased under plan is 85% ( 85 % ) of market value on 84 2013 global payments inc.
 2016 form 10-k annual report

| shares       | weighted-averagegrant-datefair value
----------------------- | ------------ | ------------------------------------
unvested at may 31 2014 | 1754         | $ 22.72
granted                 | 954          | 36.21
vested                  | -648 ( 648 ) | 23.17
forfeited               | -212 ( 212 ) | 27.03
unvested at may 31 2015 | 1848         | 28.97
granted                 | 461          | 57.04
vested                  | -633 ( 633 ) | 27.55
forfeited               | -70 ( 70 )   | 34.69
unvested at may 31 2016 | 1606         | $ 37.25


entergy louisiana , llc subsidiaries management 2019s financial discussion analysis plan to spin off utility 2019s transmission business see 201cplan to spin off utility 2019s transmission business 201d section of entergy corporation subsidiaries management 2019s financial discussion analysis for discussion matter including planned retirement of debt preferred securities.
 results of operations net income 2011 compared to 2010 net income increased $ 242. 5 million due to settlement with irs related to mark-to-market income tax treatment of power purchase contracts resulted in $ 422 million income tax benefit.
 net income effect partially offset by $ 199 million regulatory charge reduced net revenue portion of benefit shared with customers.
 see note 3 to financial statements for additional discussion settlement benefit sharing.
 2010 compared to 2009 net income decreased slightly by $ 1. 4 million due to higher operation maintenance expenses higher effective income tax rate higher interest expense  offset by higher net revenue.
 net revenue 2011 compared to 2010 net revenue consists of operating revenues net of 1 fuel , fuel-related expenses  gas purchased for resale  2 ) purchased power expenses  3 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2011 to 2010.
 amount ( in millions ).
 mark-to-market tax settlement sharing variance results from regulatory charge portion of benefits of settlement with irs related mark-to-market income tax treatment power purchase contracts shared with customers slightly offset by amortization of portion of charge beginning in october 2011.
 see notes 3 and 8 to financial statements for discussion of settlement benefit sharing.
 retail electric price variance due to formula rate plan increase effective may 2011.
 see note 2 to financial statements for discussion of formula rate plan increase.

| amount ( in millions )
------------------------------------- | ----------------------
2010 net revenue                      | $ 1043.7
mark-to-market tax settlement sharing | -195.9 ( 195.9 )
retail electric price                 | 32.5
volume/weather                        | 11.6
other                                 | -5.7 ( 5.7 )
2011 net revenue                      | $ 886.2


kinder morgan , inc.
 form 10-k indicate check mark whether registrant ( 1 ) filed all reports required by section 13 or 15 ( d ) of securities exchange act of 1934 preceding 12 months ( or shorter period ) , and ( 2 ) subject to such filing requirements for past 90 days.
 yes f06f no f0fe indicate check mark registrant submitted electronically and posted on corporate website  if, every interactive data file required submitted and posted pursuant to rule 405 of regulation s-t during preceding 12 months ( or ).
 yes f06f no f06f indicate check mark if disclosure of delinquent filers pursuant to item 405 of regulation s-k not contained herein , will not be contained registrant 2019s knowledge , in definitive proxy or information statements incorporated by reference in part iii of form 10-k or any amendment to form 10-k.
 f0fe indicate by check mark registrant is large accelerated filer , accelerated filer , non-accelerated filer , or smaller reporting company ( as defined in rule 12b-2 of securities exchange act of 1934 ).
 large accelerated filer f06f accelerated filer f06f non-accelerated filer f0fe smaller reporting company f06f indicate check mark whether registrant is a shell company ( as defined in rule 12b-2 of securities exchange act of 1934 ).
 yes f06f no f0fe as of june 30 , 2010 , registrant was privately held company  market value of common equity held by nonaffiliates was zero.
 as of february 16 , 2011 , registrant had following number of shares of common stock outstanding:.
 explanatory note prior to consummation of february 2011 initial public offering , kinder morgan , inc., delaware limited liability company named kinder morgan holdco llc unitholders became stockholders of kinder morgan , inc.
 upon completion of initial public offering.
 except disclosed in accompanying report , consolidated financial statements selected historical consolidated financial data other historical financial information included in report are of kinder morgan holdco llc or predecessor subsidiaries do not give effect to conversion.
 kinder morgan holdco llc 2019s wholly owned subsidiary , kinder morgan , inc. not registrant under initial public offering  changed name to kinder morgan kansas , inc.

class a common stock | 597213410
-------------------- | ---------
class b common stock | 100000000
class c common stock | 2462927
class p common stock | 109786590


increase in dividends paid.
 free cash flow defined as cash provided by operating activities less cash used in investing activities dividends paid.
 free cash flow not considered a financial measure under accounting principles accepted in u. s.
 ( gaap ) by sec regulation g and item 10 of sec regulation s-k may not be defined and calculated by other companies same manner.
 believe free cash flow important to management investors in evaluating financial performance measures ability to generate cash without additional external financings.
 free cash flow should be considered in addition to rather than substitute for cash by operating activities.
 following table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions 2013 2012 2011.
 2014 outlook f0b7 safety 2013 operating safe railroad benefits employees customers shareholders communities we serve.
 continue using multi-faceted approach to safety  utilizing technology  risk assessment quality control training employee engagement targeted capital investments.
 continue using expanding deployment of total safety culture courage to care throughout operations identify implement best practices for employee operational safety.
 derailment prevention reduction of grade crossing incidents critical aspects of safety programs.
 continue efforts to increase detection of rail defects improve close crossings educate public law enforcement agencies about crossing safety through combination our own programs ( including risk assessment strategies ) industry programs local community activities across network.
 f0b7 network operations 2013 believe railroad capable of handling growing volumes while providing high levels of customer service.
 track structure in excellent condition certain sections of network have surplus line and terminal capacity.
 in solid resource position with sufficient supplies of locomotives , freight cars crews to support growth.
 f0b7 fuel prices 2013 uncertainty about economy makes projections of fuel prices difficult.
could see volatile fuel prices during year , sensitive to global u. s.
 domestic demand  refining capacity  geopolitical events  weather conditions other factors.
 to reduce impact of fuel price on earnings , continue seeking cost recovery from customers through fuel surcharge programs expanding fuel conservation efforts.
 f0b7 capital plan 2013 in 2014  plan to make total capital investments of approximately $ 3. 9 billion  including expenditures for positive train control ( ptc ) , may be revised if business conditions warrant or if new laws or regulations affect ability to generate sufficient returns on investments.
 ( see further discussion in item 7 under liquidity and capital resources 2013 capital plan. ) f0b7 positive train control 2013 in response to legislative mandate to implement ptc by end of 2015  invested $ 1. 2 billion in capital expenditures plan to spend additional $ 450 million during 2014 on developing and deploying ptc.
 estimate ptc , in with implementing rules by federal rail administration ( fra )  will cost us approximately $ 2 billion by end of project.
 includes costs for installing new system along tracks  upgrading locomotives work with new system adding digital data communication equipment to integrate various components system achieve interoperability for industry.
 unlikely rail industry will meet current mandatory 2015 deadline ( fra indicated in 2012 report to congress ), making good faith effort to do so working closely with regulators implement new technology.

millions                              | 2013           | 2012           | 2011
------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 6823         | $ 6161         | $ 5873
cash used in investing activities     | -3405 ( 3405 ) | -3633 ( 3633 ) | -3119 ( 3119 )
dividends paid                        | -1333 ( 1333 ) | -1146 ( 1146 ) | -837 ( 837 )
free cash flow                        | $ 2085         | $ 1382         | $ 1917


edwards lifesciences corporation notes consolidated financial statements 2014 continued future minimum lease payments including interest ) under noncancelable operating leases aggregate debt maturities at december 31, 2004 in millions ) : aggregate operating debt leases maturities 2005*************************************************************** $ 13. 1 $ 2014 11. 5 2014 8. 9 2014 8. 0 2014 7. 2 2014 1. 1 267. 1 total obligations commitments************************************** $ 49. 8 $ 267. 1 included in debt at december 31, 2004 2003 unsecured notes in japanese yen of a57. 0 billion ( us$ 67. 1 million ) and a56. 0 billion ( us$ 55. 8 million )  respectively.
 certain facilities equipment leased under operating leases expiring various dates.
 operating leases contain renewal options.
 total expense for all operating leases was $ 14. 0 million , $ 12. 3 million  $ 6. 8 million for years 2004 , 2003 2002  respectively.
 11.
 financial instruments risk management fair values of financial instruments consolidated financial statements include financial instruments fair market value may differ from historical basis.
 financial instruments company consist cash deposits  accounts other receivables investments in unconsolidated affiliates accounts payable certain accrued liabilities debt.
 fair values of certain investments in unconsolidated affiliates estimated based on quoted market prices.
 other investments various methods estimate fair value including external valuations discounted cash flows.
 carrying amount company 2019s long-term debt approximates fair market value based prevailing market rates.
company 2019s financial instruments approximate fair values based short-term nature.
 edwards lifesciences corporation notes to consolidated financial statements 2014 future minimum lease payments including interest ) under noncancelable operating leases aggregate debt maturities at december 31 , 2004 were in millions ) : aggregate operating debt leases maturities 2005*************************************************************** $ 13. 1 $ 2014 11. 5 2014 8. 9 2014 8. 0 2014 7. 2 2014 1. 1 267. 1 total obligations and commitments************************************** $ 49. 8 $ 267. 1 included in debt at december 31 , 2004 and 2003 were unsecured notes denominated in japanese yen of a57. 0 billion ( us$ 67. 1 million ) and a56. 0 billion ( us$ 55. 8 million ) .
 certain facilities equipment leased under operating leases expiring at various dates.
 operating leases contain renewal options.
 total expense for all operating leases was $ 14. 0 million , $ 12. 3 million  $ 6. 8 million for years 2004 , 2003 2002 .
.
 financial instruments risk management fair values of financial instruments consolidated financial statements include financial instruments fair market value may differ from historical basis.
 financial instruments company consist of cash deposits , accounts receivables  investments in unconsolidated affiliates  accounts payable  accrued liabilities debt.
 fair values of investments in unconsolidated affiliates estimated based on quoted market prices.
 for other investments various methods to estimate fair value including external valuations discounted cash flows.
carrying amount of company 2019s long-term debt approximates fair market value based on prevailing market rates.
 company 2019s other financial instruments approximate fair values based short-term nature instruments.

| operating leases | aggregate debt maturities
--------------------------------- | ---------------- | -------------------------
2005                              | $ 13.1           | $ 2014
2006                              | 11.5             | 2014
2007                              | 8.9              | 2014
2008                              | 8.0              | 2014
2009                              | 7.2              | 2014
thereafter                        | 1.1              | 267.1
total obligations and commitments | $ 49.8           | $ 267.1


long-term liabilities.
 value of company 2019s deferred compensation obligations based on market value of participants 2019 notional investment accounts.
 notional investments primarily of mutual funds  based on observable market prices.
 mark-to-market derivative asset and liability 2014the company utilizes fixed-to-floating interest-rate swaps  designated as fair-value hedges  to achieve targeted level of variable-rate debt percentage of total debt.
 company also employs derivative financial instruments in variable-to-fixed interest rate swaps  as economic hedges , to fix interest cost on variable-rate debt.
 company uses calculation of future cash inflows and estimated future outflows  discounted  to determine current fair value.
 additional inputs to present value calculation include contract terms  counterparty credit risk  interest rates market volatility.
 other investments 2014other investments primarily represent money market funds for active employee benefits.
 company includes other investments in other current assets.
 note 18 : leases company entered into operating leases involving certain facilities and equipment.
 rental expenses under operating leases were $ 21 for 2015 , $ 22 for 2014 and $ 23 for 2013.
 operating leases for facilities expire over next 25 years and operating leases for equipment expire over next five years.
 certain operating leases have renewal options from one to five years.
 minimum annual future rental commitment under operating leases initial or remaining non- cancelable lease terms over next five years.
 company has agreements with public entities ( 201cpartners 201d ) to establish joint ventures  referred 201cpublic-private partnerships.201d under public-private partnerships , company constructed utility plant , financed by company and partners constructed utility plant ( connected to company 2019s property ) , financed by partners.
 company agreed to transfer and convey some its real and personal property to partners in exchange for equal principal amount of industrial development bonds ( 201cidbs 201d ) , issued by partners under state industrial development bond and commercial development act.
 company leased back total facilities , including portions funded by both company and partners , under leases for period of 40 years.
 leases related to portion of facilities funded by company required payments from company to partners approximate payments required by terms of idbs from partners to company ( as holder of idbs ).
 ownership of portion of facilities constructed by company will revert back to company at end of lease , company recorded these as capital leases.
 lease obligation and receivable for principal amount of idbs presented by company on net basis.
 gross cost of facilities funded by company recognized as capital lease asset was $ 156 and $ 157 as of december 31 , 2015 and 2014 , respectively , presented in property , plant and equipment in accompanying consolidated balance sheets.
 future payments under lease obligations are equal to and offset by payments receivable under idbs.

year       | amount
---------- | ------
2016       | $ 13
2017       | 12
2018       | 11
2019       | 10
2020       | 8
thereafter | 74


cash flow from continuing operations for 2017 was $ 2. 7 billion $ 191 million 8 percent increase compared with 2016 reflecting higher earnings favorable changes in working capital.
 cash flow $ 2. 5 billion in 2016 23 percent increase compared to $ 2. 0 billion 2015 comparisons benefited from income taxes of $ 424 million paid on gains from divestitures in 2015.
 september 30  2017 operating working capital as percent of sales increased to 6. 6 percent due to higher levels working capital in acquired valves & controls business compared with 5. 2 percent 7. 2 percent in 2016 2015.
 cash flow from continuing operations funded capital expenditures $ 476 million dividends $ 1239 million common stock purchases $ 400 million used partially pay down debt in 2017.
 proceeds of $ 5. 1 billion from sales network power systems power generation motors drives businesses funded acquisitions $ 2990 million cash used for discontinued operations $ 778 million repayments of short-term borrowings long-term debt of $ 1. 3 billion.
 contributions to pension plans were $ 45 million in 2017 $ 66 million in 2016 $ 53 million in 2015.
 capital expenditures related to continuing operations were $ 476 million  $ 447 million $ 588 million in 2017 2016 2015.
 free cash flow from continuing operations was $ 2. 2 billion in 2017 up 8 percent.
 free cash flow was $ 2. 1 billion in 2016 compared with $ 1. 5 billion in 2015.
 targeting capital spending of approximately $ 550 million in 2018.
 net cash paid acquisitions was $ 2990 million $ 132 million $ 324 million in 2017 2016 2015.
 proceeds from divestitures not classified as discontinued operations were $ 39 million in 2017 and $ 1812 million in 2015.
dividends $ 1239 million ( $ 1. 92 per share ) in 2017 compared with $ 1227 million ( $ 1. 90 per share 2016 $ 1269 million ( $ 1. 88 per share ) in 2015.
 november 2017 board of directors increase quarterly cash dividend 1 percent to annualized rate $ 1. 94 per share.
 purchases of emerson common stock totaled $ 400 million  $ 601 million $ 2487 million in 2017 2016 2015 average per share prices $ 60. 51  $ 48. 11 $ 57. 68.
 board directors authorized purchase of to 70 million common shares in november 2015 56. 9 million shares remain available for purchase authorization.
 company purchased 6. 6 million shares in 2017 under november 2015 authorization.
 2016 purchased 12. 5 million shares under combination november 2015 authorization remainder may 2013 authorization.
 total of 43. 1 million shares purchased in 2015 under may 2013 authorization.
 leverage/capitalization ( dollars in millions ) 2015 2016 2017.
 total debt  includes long-term debt current maturities long-term debt commercial paper short-term borrowings was $ 4. 7 billion  $ 6. 6 billion $ 6. 8 billion for 2017 2016 2015.
 company repaid $ 250 million of 5. 125% ( 5. 125 % ) notes matured in december 2016.
 2015 issued $ 500 million of 2. 625% ( 2. 625 % ) notes due december 2021 $ 500 million of 3. 150% ( 3. 150 % ) notes due june 2025 repaid $ 250 million of 5. 0% ( 5. 0 % ) notes matured december 2014 $ 250 million of 4. 125% ( 4. 125 % ) notes matured april 2015.
total debt-to-capital ratio net debt-to-net capital ratio ( less cash short-term investments ) decreased 2017 due to lower total debt outstanding higher common stockholders 2019 equity from changes in other comprehensive income.
 total debt-to-capital ratio net debt-to-net capital ratio less cash short-term investments increased 2016 due to lower common stockholders 2019 equity from share repurchases changes in other comprehensive income.
 operating cash flow from continuing operations-to-debt ratio increased 2017 due to lower debt current year.
 operating cash flow from continuing operations-to- debt ratio increased 2016 due to taxes paid 2015 on divestiture gains lower debt 2016.
 interest coverage ratio computed as earnings from continuing operations before income taxes plus interest expense divided by interest expense.
 increase in interest coverage in 2017 reflects lower interest expense current year.
 decrease in interest coverage in 2016 reflects lower pretax earnings due to divestiture gains of $ 1039 million in 2015 higher interest expense.
 april 2014 company entered into $ 3. 5 billion five- year revolving backup credit facility with banks replaced december 2010 $ 2. 75 billion facility.
 credit facility maintained to support general corporate purposes including commercial paper borrowing.
 company not incurred borrowings under this or previous facilities.
 credit facility contains no financial covenants not subject to termination based on change of credit rating material adverse changes.
 facility unsecured be accessed under various interest rate currency denomination alternatives at company 2019s option.
 fees to maintain facility are immaterial.
 company maintains universal shelf registration statement on file with sec

( dollars in millions )           | 2015             | 2016             | 2017
--------------------------------- | ---------------- | ---------------- | ----------------
total assets                      | $ 22088          | 21732            | 19589
long-term debt                    | $ 4289           | 4051             | 3794
common stockholders' equity       | $ 8081           | 7568             | 8718
total debt-to-total capital ratio | 45.8% ( 45.8 % ) | 46.7% ( 46.7 % ) | 34.8% ( 34.8 % )
net debt-to-net capital ratio     | 31.3% ( 31.3 % ) | 31.3% ( 31.3 % ) | 15.4% ( 15.4 % )
operating cash flow-to-debt ratio | 29.8% ( 29.8 % ) | 37.7% ( 37.7 % ) | 57.8% ( 57.8 % )
interest coverage ratio           | 20.2x            | 11.8x            | 12.6x


goodwill and other intangible assets goodwill represents excess of purchase price over fair value of identifiable net assets acquired in business combination.
 company 2019s reporting units are operating segments.
 during second quarter of 2017  company completed scheduled annual assessment for goodwill impairment across eleven reporting units through quantitative analysis  utilizing discounted cash flow approach incorporates assumptions regarding future growth rates terminal values discount rates.
 two-step quantitative process involved comparing estimated fair value of each reporting unit to reporting unit 2019s carrying value  including goodwill.
 if fair value of reporting unit exceeds carrying value , goodwill reporting unit considered not to be impaired second step of impairment test is unnecessary.
 if carrying amount reporting unit exceeds fair value , second step of goodwill impairment test performed to measure amount of impairment loss to recorded  if.
 company 2019s goodwill impairment assessment for 2017 indicated estimated fair value of each reporting units exceeded carrying amount by significant margin.
 if circumstances change significantly company would also test reporting unit 2019s goodwill for impairment during interim periods between annual tests.
 no impairment of goodwill in any of years presented.
 in fourth quarter of 2017 , company sold equipment care business  was a reporting unit  goodwill associated with equipment care disposed of upon sale.
 no other events occurred during second half of 2017 indicated need to update company 2019s conclusions reached during second quarter of 2017.
 changes in carrying amount of goodwill for each of company 2019s reportable segments are as follows : global ( millions ) industrial institutional energy other total.
( a ) relates to establishment life sciences reporting unit first quarter 2017  goodwill allocated to life sciences based on fair value allocation goodwill.
 life sciences reporting unit included in industrial reportable segment comprised of operations previously recorded in food & beverage and healthcare reporting units aggregated reported in global industrial and global institutional reportable segments.
 see note 17 for further information.
 ( b ) for 2017  company expects $ 79. 2 million goodwill related to businesses acquired tax deductible.
 for 2016, $ 3. 0 million goodwill related to businesses acquired expected tax deductible.
 ( c ) represents purchase price allocation adjustments for acquisitions deemed preliminary as end of prior year.
 ( d ) represents immaterial reclassifications of beginning balances to conform to current or prior year presentation due to customer reclassifications across reporting segments completed first quarter respective year.

( millions )                             | global industrial | global institutional | global energy  | other          | total
---------------------------------------- | ----------------- | -------------------- | -------------- | -------------- | ----------------
december 31 2015                         | $ 2560.8          | $ 662.7              | $ 3151.5       | $ 115.8        | $ 6490.8
segment change ( a )                     | 62.7              | -62.7 ( 62.7 )       | -              | -              | -
december 31 2015 revised                 | $ 2623.5          | $ 600.0              | $ 3151.5       | $ 115.8        | $ 6490.8
current year business combinations ( b ) | -                 | 3.1                  | 0.6            | -              | 3.7
prior year business combinations ( c )   | 3.5               | -                    | 0.1            | -              | 3.6
reclassifications ( d )                  | 3.5               | -0.6 ( 0.6 )         | -2.9 ( 2.9 )   | -              | -
effect of foreign currency translation   | -45.5 ( 45.5 )    | -11.8 ( 11.8 )       | -55.7 ( 55.7 ) | -2.1 ( 2.1 )   | -115.1 ( 115.1 )
december 31 2016                         | $ 2585.0          | $ 590.7              | $ 3093.6       | $ 113.7        | $ 6383.0
current year business combinations ( b ) | 123.4             | 403.7                | 8.1            | 63.9           | 599.1
prior year business combinations ( c )   | -0.2 ( 0.2 )      | -                    | 0.3            | -              | 0.1
dispositions                             | -                 | -                    | -              | -42.6 ( 42.6 ) | -42.6 ( 42.6 )
effect of foreign currency translation   | 88.8              | 32.6                 | 101.7          | 4.4            | 227.5
december 31 2017                         | $ 2797.0          | $ 1027.0             | $ 3203.7       | $ 139.4        | $ 7167.1


liquidity capital resources table summarizes liquidity data dates indicated ( in thousands ) : december 31 .
 total debt 1 ) 3365687 1599695 current maturities 2 ) 68414 57494 capacity under credit facilities 3 ) 2550000 1947000 availability under credit facilities 3 ) 1019112 1337653 total liquidity ( cash and equivalents plus availability on credit facilities ) 1246512 1425050 1 ) debt amounts reflect gross values to be repaid ( excluding debt issuance costs of $ 23. 9 million and $ 15. 0 million as of december 31 , 2016 and 2015  ).
 2 ) debt amounts reflect gross values repaid ( excluding debt issuance costs of $ 2. 3 million and $ 1. 5 million as of december 31 , 2016 and 2015  ).
 3 ) includes revolving credit facilities  receivables securitization facility letters of credit.
 assess liquidity ability to fund operations provide for expansion through internal development acquisitions.
 primary sources of liquidity are cash flows from operations credit facilities.
 utilize cash flows from operations to fund working capital capital expenditures excess amounts towards funding acquisitions or paying down outstanding debt.
 pursued acquisitions growth strategy cash flows from operations not always sufficient to cover investing activities.
 to fund acquisitions accessed various forms of debt financing including revolving credit facilities  senior notes  receivables securitization facility.
 as of december 31 , 2016  had debt outstanding additional available sources of financing : 2022 senior secured credit facilities maturing in january 2021  term loans totaling $ 750 million ( $ 732. 7 million outstanding at december 31 , 2016 ) $ 2. 45 billion in revolving credit.36 billion outstanding at december 31 , 2016 ) bearing interest at variable rates portion debt hedged through interest rate swap contracts ) reduced by $ 72. 7 million amounts outstanding under letters of credit 2022 senior notes totaling $ 600 million  maturing may 2023 bearing interest at 4. 75% ( 4. 75 % ) fixed rate 2022 euro notes totaling $ 526 million ( 20ac500 million ) maturing april 2024 bearing interest at 3. 875% ( 3. 875 % ) fixed rate 2022 receivables securitization facility availability up to $ 100 million ( $ 100 million outstanding as of december 31 , 2016 ) maturing november 2019 bearing interest at variable commercial paper may undertake financing transactions to increase available liquidity january 2016 amendment to senior secured credit facilities issuance of 20ac500 million of euro notes in april 2016 november 2016 amendment to receivables securitization facility.
 rhiag acquisition catalyst for april issuance of 20ac500 million of euro notes.
 rhiag long term asset considered alternative financing options decided to fund portion of acquisition through issuance of long term notes.
 interest rates on rhiag's acquired debt ranged between 6. 45% ( 6. 45 % ) and 7. 25% ( 7. 25 % ).
 issuance of 20ac500 million of senior notes at rate of 3. 875% ( 3. 875 % ) to replace rhiag's borrowings with long term financing at favorable rates.
 refinancing provides financial flexibility long-term growth strategy freeing up availability under revolver.
 if attractive acquisition opportunity ability to use revolver to move quickly have certainty of funding.
 as of december 31 , 2016  approximately $ 1. 02 billion available under credit facilities.
 combined with approximately $ 227.4 million cash equivalents at december 31 , 2016  had approximately $ 1. 25 billion available liquidity decrease $ 178. 5 million from available liquidity as of december 31 , 2015.
 expect to use proceeds from sale of pgw's glass manufacturing business to pay down borrowings under revolving credit facilities increase available liquidity approximately $ 310 million when transaction closes.

| december 31 2016 | december 31 2015
------------------------------------------------------------------------------- | ---------------- | ----------------
cash and equivalents                                                            | $ 227400         | $ 87397
total debt ( 1 )                                                                | 3365687          | 1599695
current maturities ( 2 )                                                        | 68414            | 57494
capacity under credit facilities ( 3 )                                          | 2550000          | 1947000
availability under credit facilities ( 3 )                                      | 1019112          | 1337653
total liquidity ( cash and equivalents plus availability on credit facilities ) | 1246512          | 1425050