sources blackrock 2019s operating cash include investment advisory  administration fees securities lending revenue  performance fees  revenue from technology risk management services  advisory other revenue distribution fees.
 blackrock uses cash to pay operating expense  interest principal on borrowings  income taxes dividends on 2019s capital stock  repurchases company stock capital expenditures purchases of co-investments seed investments.
 for details company 2019s gaap cash flows from operating investing financing activities see consolidated statements of cash flows in part ii , item 8 of filing.
 cash flows from operating activities  excluding impact consolidated sponsored investment funds include receipt of investment advisory administration fees securities lending revenue performance fees offset by payment operating expenses normal business including year-end incentive compensation accrued for prior year.
 cash outflows from investing activities  excluding impact investment funds for 2017 were $ 517 million reflected $ 497 million of investment purchases  $ 155 million of purchases of property and equipment  $ 73 million to first reserve transaction $ 29 million to cachematrix transaction  offset by $ 205 million of net proceeds from sales maturities of certain investments.
 cash outflows from financing activities  excluding impact consolidated sponsored investment funds for 2017 were $ 3094 million  resulting from $ 1. 4 billion of share repurchases  including $ 1. 1 billion in open market- transactions $ 321 million of employee tax withholdings related to employee stock transactions  $ 1. 7 billion of cash dividend payments $ 700 million of repayments of long- term borrowings  offset by $ 697 million of proceeds from issuance of long-term borrowings.
 company manages financial condition funding to maintain liquidity for business.
liquidity resources at december 31, 2017 and 2016 were as follows : ( in millions ) december 31  cash and cash equivalents 1 ) $ 6894 $ 6091 cash cash equivalents held by consolidated vres ( 2 ) ( 63 ) ( 53 ).
 total liquidity resources 3 ) $ 10831 $ 10038 percentage of cash and cash equivalents held by company 2019s.
 subsidiaries was approximately 40% ( 40 % ) and 50% ( 50 % ) at december 31, 2017 and 2016 .
 see net capital requirements for information subsidiaries.
 company cannot access such cash in operating activities.
 amounts do not reflect reduction for year-end incentive compensation accruals of approximately $ 1. 5 billion and $ 1. 3 billion for 2017 and 2016  paid in first quarter of following year.
 total liquidity resources increased $ 793 million during 2017  primarily reflecting cash flows from operating activities partially offset by cash payments of 2016 year-end incentive awards  share repurchases of $ 1. 4 billion cash dividend payments of $ 1. 7 billion.
 significant portion of company 2019s $ 3154 million of total investments  is illiquid in nature cannot be readily convertible to cash.
 share repurchases.
 company repurchased 2. 6 million common shares in open market transactions under share repurchase program for approximately $ 1. 1 billion during 2017.
 at december 31 , 2017  were 6. 4 million shares still authorized to be repurchased.
 net capital requirements.
 company required to maintain net capital in certain regulated subsidiaries within jurisdictions partially maintained by retaining cash and cash equivalent investments in subsidiaries jurisdictions.
 such subsidiaries company may be restricted in ability to transfer cash between different jurisdictions to parents.
transfers of cash between international jurisdictions may have adverse tax consequences could discourage transfers.
 blackrock institutional trust company .
 ( 201cbtc 201d ) chartered as national bank accept client deposits powers limited to trust and fiduciary activities.
 btc provides investment management services including investment advisory securities lending agency services to institutional clients.
 btc subject to regulatory capital and liquid asset requirements by office of comptroller of currency.
 at december 31 , 2017 2016 company required to maintain approximately $ 1. 8 billion and $ 1. 4 billion  in net capital in certain regulated subsidiaries including btc entities regulated by financial conduct authority prudential regulation authority in united kingdom company 2019s broker-dealers.
 company in compliance with all regulatory net capital requirements.
 undistributed earnings of foreign subsidiaries.
 result of 2017 tax act one-time mandatory repatriation tax on untaxed accumulated foreign earnings provisional amount of.
 income taxes provided on undistributed foreign earnings.
 financial statement basis in excess of tax basis of foreign subsidiaries remains indefinitely reinvested in foreign operations.
 company will continue to evaluate capital management plans throughout 2018.
 short-term borrowings 2017 revolving credit facility.
 company 2019s credit facility has aggregate commitment amount of $ 4. 0 billion amended in april 2017 to extend maturity date to april 2022 ( 201c2017 credit facility 201d ).
 credit facility permits company to request to additional $ 1. 0 billion of borrowing capacity subject to lender credit approval increasing overall size of 2017 credit facility to aggregate principal amount not to exceed $ 5. 0 billion.
 interest on borrowings outstanding accrues at rate based on applicable london interbank offered rate plus spread.
 2017 credit facility requires company

( in millions )                                           | december 31 2017 | december 31 2016
--------------------------------------------------------- | ---------------- | ----------------
cash and cash equivalents ( 1 )                           | $ 6894           | $ 6091
cash and cash equivalents held by consolidated vres ( 2 ) | -63 ( 63 )       | -53 ( 53 )
subtotal                                                  | 6831             | 6038
credit facility 2014 undrawn                              | 4000             | 4000
total liquidity resources ( 3 )                           | $ 10831          | $ 10038


november 2016  issued $ 45 million fixed rate term notes in two tranches to two insurance companies.
 principal payments commence 2023 and 2028 notes mature in 2029 and 2034  respectively.
 notes carry interest rates of 2. 87 and 3. 10 , respectively.
 used proceeds notes to pay down borrowings under revolving credit facility.
 january 2015  issued $ 75 million fixed rate term notes to insurance company.
 principal payments commence 2020 notes mature in 2030.
 notes carry interest rate of 3. 52 percent.
 used proceeds notes to pay down borrowings under revolving credit facility.
 at december 31, 2016 had available borrowing capacity of $ 310. 8 million under facility.
 believe combination of cash , available borrowing capacity operating cash flow will provide sufficient funds to finance existing operations for foreseeable future.
 total debt increased to $ 323. 6 million at december 31 , 2016 compared with $ 249. 0 million at december 31 , 2015 cash flows generated. more offset by share repurchase activity and purchase of aquasana.
 leverage , measured by ratio of total debt to total capitalization was 17. 6 percent at end of 2016 compared with 14. 7 percent at end of 2015.
.
 pension plan continues meet funding requirements under erisa regulations.
 not required to make contribution to pension plan in 2016 but made voluntary $ 30 million contribution due to escalating pension benefit guaranty corporation insurance premiums.
 forecast will not be required to make contribution to plan in 2017 do not plan to make voluntary contributions in 2017.
 for further information on pension plans see note 10 of notes to consolidated financial statements.
 during 2016  board of directors authorized purchase of additional 3000000 shares of common stock.
 in 2016 repurchased 3273109 shares at average price of $ 41.30 per share total cost of $ 135. 2 million.
 total 4906403 shares remained on existing repurchase authorization at december 31 , 2016.
 depending on factors stock price  working capital requirements alternative investment opportunities acquisitions expect to spend approximately $ 135 million on share repurchase activity in 2017 using 10b5-1 repurchase plan.
 may repurchase additional $ 65 million shares in 2017.
 paid dividends for 77 consecutive years payments increasing each last 25 years.
 paid dividends $ 0. 48 per share in 2016 compared with $ 0. 38 per share in 2015.
 in january 2017 increased dividend by 17 percent anticipate paying dividends $ 0. 56 per share in 2017.
 aggregate contractual obligations summary of contractual obligations as of december 31 , 2016 :.
 as of december 31 , 2016  liability for uncertain income tax positions was $ 4. 2 million.
 due to high degree uncertainty regarding timing of potential future cash flows with liabilities unable to make reliable estimate of amount and period in liabilities might be paid.
 utilize blanket purchase orders to communicate expected annual requirements to suppliers.
 requirements under blanket purchase orders not become committed until several weeks prior to scheduled unit production.
 purchase obligation amount presented above represents value of commitments consider firm.
 recent accounting pronouncements refer to recent accounting pronouncements in note 1 of notes to consolidated financial statements.

( dollars in millions ) contractual obligations | ( dollars in millions ) total | ( dollars in millions ) less than1 year | ( dollars in millions ) 1 - 2years | ( dollars in millions ) 3 - 5years | more than5 years
----------------------------------------------- | ----------------------------- | --------------------------------------- | ---------------------------------- | ---------------------------------- | ----------------
long-term debt                                  | $ 323.6                       | $ 7.2                                   | $ 7.2                              | $ 202.9                            | $ 106.3
fixed rate interest                             | 38.6                          | 4.6                                     | 8.1                                | 7.2                                | 18.7
operating leases                                | 37.4                          | 19.5                                    | 7.9                                | 4.2                                | 5.8
purchase obligations                            | 150.8                         | 141.4                                   | 5.8                                | 3.6                                | 2014
pension and post-retirement obligations         | 66.0                          | 0.9                                     | 9.5                                | 8.6                                | 47.0
total                                           | $ 616.4                       | $ 173.6                                 | $ 38.5                             | $ 226.5                            | $ 177.8


goodwill intangible asset impairment charge third quarter fiscal year 2017 determined goodwill indefinite-lived intangible assets ( primarily acquired trade names ) associated with latin america reporting unit industrial gases 2013 americas segment impaired.
 recorded noncash impairment charge of $ 162. 1 ( $ 154. 1 attributable to air products  after-tax or $. 70 per share ) driven by lower economic growth profitability region.
 impairment charge excluded from segment results.
 refer to note 10  goodwill  note 11  intangible assets  consolidated financial statements for additional information.
 other income ( expense ), net items recorded "other income ( expense )  net arise from transactions events not directly related to principal income earning activities.
 detail of "other income ( expense ) , net presented in note 23  supplemental information consolidated financial statements.
 2018 vs.
 2017 other income ( expense ) , net of $ 50. 2 decreased $ 70. 8 due to lower income from transition services agreements with versum evonik lower income from sale of assets investments lower favorable contract settlements unfavorable foreign exchange impact.
 2017 vs.
 2016 other income ( expense ) , net of $ 121. 0 increased $ 71. 6 primarily due to income from transition services agreements with versum evonik income sale of assets investments gain of $ 12. 2 ( $ 7. 6 after-tax or $. 03 per share ) from sale of parcel of land  favorable foreign exchange impact.
 interest expense.
 2018 vs.
 2017 interest incurred increased $ 10. 4 project financing associated lu'an joint venture higher average interest rate on debt portfolio partially offset by impact lower average debt balance.
change in capitalized interest driven by increase in carrying value of projects under construction.
 2017 vs.
 2016 interest incurred decreased $ 8. 3 impact from lower average debt balance of $ 26 partially offset by impact higher average interest rate on debt portfolio of $ 19.
 change in capitalized interest driven by decrease in carrying value of projects under construction result of decision to exit from efw business.
 other non-operating income ( expense ) , net 2018 vs.
 2017 net of $ 5. 1 decreased $ 11. 5.
 during fourth quarter of fiscal year 2018 recognized pension settlement loss of $ 43. 7 ( $ 33. 2 after-tax  or $. 15 per share ) resulted from transfer of pension payment obligations to insurer for.
 salaried and hourly plans through purchase of irrevocable, nonparticipating group annuity contract with plan assets.
 for additional information refer to note 16 retirement benefits consolidated financial statements.
 loss partially offset by higher interest income on cash items and short-term investments lower other non-service pension expense.
 prior year pension expense included settlement loss of $ 10. 5 ( $ 6. 6 after-tax  or $. 03 per share ) associated with u. s.
 supplementary pension plan and settlement benefit of $ 2. 3 related to disposition of emd and pmd.

| 2018    | 2017    | 2016
--------------------------- | ------- | ------- | -------
interest incurred           | $ 150.0 | $ 139.6 | $ 147.9
less : capitalized interest | 19.5    | 19.0    | 32.7
interest expense            | $ 130.5 | $ 120.6 | $ 115.2


jpmorgan chase & co. /2015 annual report 67 five-year stock performance table and graph compare five-year cumulative total return for jpmorgan chase & co.
 ( 201cjpmorgan chase 201d or 201cfirm 201d ) common stock with cumulative return of s&p 500 index , kbw bank index s&p financial index.
 s&p 500 index referenced united states of america ( 201cu. s. 201d ) equity benchmark leading companies from different economic sectors.
 kbw bank index performance of banks and thrifts publicly traded in u. s.
 composed of 24 leading national money center regional banks and thrifts.
 s&p financial index index of 87 financial companies all components of s&p 500.
 firm component of all three industry indices.
 table and graph assume simultaneous investments of $ 100 on december 31, 2010, in jpmorgan chase common stock each above indices.
 comparison assumes all dividends are reinvested.
 december 31 , ( in dollars ) 2010 2011 2012 2013 2014 2015.
 december 31 , ( in dollars )

december 31 ( in dollars ) | 2010     | 2011    | 2012     | 2013     | 2014     | 2015
-------------------------- | -------- | ------- | -------- | -------- | -------- | --------
jpmorgan chase             | $ 100.00 | $ 80.03 | $ 108.98 | $ 148.98 | $ 163.71 | $ 177.40
kbw bank index             | 100.00   | 76.82   | 102.19   | 140.77   | 153.96   | 154.71
s&p financial index        | 100.00   | 82.94   | 106.78   | 144.79   | 166.76   | 164.15
s&p 500 index              | 100.00   | 102.11  | 118.44   | 156.78   | 178.22   | 180.67


sales volumes in 2013 increased from 2012 primarily for fluff pulp reflecting improved market demand change in product mix with full year of fluff pulp production at franklin , virginia mill.
 average sales price realizations lower for fluff pulp prices for market pulp increased.
 input costs for wood  fuels chemicals higher.
 mill operating costs lower due to absence of costs associated start-up franklin mill in 2012.
 planned maintenance downtime costs higher.
 first quarter of 2014 sales volumes expected to be slightly lower compared with fourth quarter 2013.
 average sales price realizations expected to improve reflecting further realization announced sales price increases for softwood pulp and fluff pulp.
 input costs should be flat.
 planned maintenance downtime costs about $ 11 million higher than fourth quarter of 2013.
 operating profits negatively impacted by severe winter weather first quarter of 2014.
 consumer packaging demand pricing for correlate with consumer spending general economic activity.
 addition prices volumes major factors affecting profitability consumer packaging are raw material energy costs freight costs manufacturing efficiency product mix.
 consumer packaging net sales in 2013 increased 8% ( 8 % ) from 2012 decreased 7% ( 7 % ) from 2011.
 operating profits decreased 40% ( 40 % ) from 2012 1% ( 1 % ) from 2011.
 net sales operating profits include shorewood business in 2011.
 excluding costs associated with permanent shutdown of paper machine at augusta , georgia mill costs associated sale of shorewood business 2013 operating profits 22% ( 22 % ) lower than 2012 43% ( 43 % ) lower than 2011.
higher sales volumes ( $ 45 million ) offset by lower average sales price realizations unfavorable mix ( $ 50 million ) higher operating costs including shutdown of paper machine at our augusta , georgia mill ( $ 46 million ) higher input costs ( $ 6 million ).
 operating profits 2013 included restructuring costs $ 45 million to permanent shutdown paper machine at augusta georgia mill $ 2 million costs with sale of shorewood business.
 operating profits 2012 included gain $ 3 million related to sale shorewood business operating profits 2011 included $ 129 million fixed asset impairment charge for north american shorewood business $ 72 million for other charges associated with sale shorewood business.
 consumer packaging.
 north american consumer packaging net sales were $ 2. 0 billion in 2013 compared with $ 2. 0 billion in 2012 $ 2. 5 billion in 2011.
 operating profits were $ 63 million ( $ 110 million excluding paper machine shutdown costs costs sale shorewood business ) in 2013 compared with $ 165 million ( $ 162 million excluding charges sale shorewood business in 2012 $ 35 million ( $ 236 million excluding asset impairment charges other costs sale shorewood business ) in 2011.
 coated paperboard sales volumes in 2013 higher than 2012 reflecting stronger market demand.
 average sales price realizations lower year-over- year despite price increases in second half of 2013.
 input costs for wood and energy increased partially offset by lower costs for chemicals.
 planned maintenance downtime costs slightly lower.
 market-related downtime about 24000 tons in 2013 compared with 113000 tons in 2012.
 permanent shutdown of paper machine at our augusta , georgia mill first quarter 2013 reduced capacity by 140000 tons 2013 compared with 2012.
 foodservice sales volumes increased slightly in 2013 compared with 2012 despite softer market demand.
average sales margins higher reflecting lower input costs for board and resins more favorable product mix.
 operating costs and distribution costs higher.
 u. s. shorewood business sold december 31 , 2011 non-u. s.
 business sold in january ahead to first quarter of 2014, coated paperboard sales volumes expected to seasonally weaker than fourth quarter of 2013.
 average sales price realizations expected slightly higher , margins should benefit from more favorable product mix.
 input costs expected higher for energy , chemicals wood.
 planned maintenance downtime costs should $ 8 million lower with planned maintenance outage scheduled at augusta mill in first quarter.
 severe winter weather in first quarter of 2014 negatively impact operating profits.
 foodservice sales volumes expected to seasonally lower.
 average sales margins expected to improve due to realization sales price increases effective with january contract openers more favorable product mix.

in millions      | 2013   | 2012   | 2011
---------------- | ------ | ------ | ------
sales            | $ 3435 | $ 3170 | $ 3710
operating profit | 161    | 268    | 163


city council 2019s advisors and entergy new orleans.
 in february 2018 city council approved settlement deferred cost recovery to 2018 entergy new orleans rate case stated adjustment for 2018-2019 ami costs can be filed in rate case for all subsequent ami costs mechanism approved in 2018 rate case will allow for timely recovery of such costs.
 sources of capital entergy new orleans 2019s sources to meet capital requirements include : 2022 internally generated funds ; 2022 cash on hand ; 2022 debt and preferred membership interest issuances ; 2022 bank financing under new or existing facilities.
 entergy orleans may refinance  redeem or retire debt prior to maturity market conditions and interest rates favorable.
 entergy new orleans 2019s receivables from money pool were as follows as of december 31 for each following years.
 see note 4 to financial statements for description of money pool.
 entergy new orleans has credit facility $ 25 million scheduled to expire in november 2018.
 credit facility allows to issue letters of credit against $ 10 million of borrowing capacity of facility.
 as of december 31 , 2017 no cash borrowings $ 0. 8 million letter of credit outstanding under facility.
 entergy new orleans party to uncommitted letter of credit facility to post collateral to support obligations. as of december 31 , 2017 $ 1. 4 million letter of credit outstanding under entergy new orleans 2019s letter of credit a0facility.
 see note 4 to financial statements for additional discussion of credit facilities.
 entergy new orleans obtained authorization from ferc through october 2019 for short-term borrowings not to exceed aggregate amount of $ 150 million time outstanding and long-term borrowings and securities issuances.
note 4 to financial statements for discussion of entergy new orleans 2019s short-term borrowing limits.
 long-term securities issuances of entergy new orleans limited to amounts authorized by ferc  by city council  current city council authorization extends through june 2018.
 entergy new orleans , llc and subsidiaries management 2019s financial discussion analysis state and local rate regulation rates entergy new orleans charges for electricity and natural gas influence financial position  results of operations  liquidity.
 entergy new orleans is regulated rates charged to customers determined in regulatory proceedings.
 governmental agency , city council , primarily responsible for approval of rates charged to customers.
 retail rates see 201calgiers asset transfer 201d below for discussion of algiers asset transfer.
 provision of settlement agreement approved by city council in may 2015 for algiers asset transfer  agreed with limited exceptions no action be taken respect to entergy new orleans 2019s base rates until rates implemented

2017             | 2016             | 2015             | 2014
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 12723          | $ 14215          | $ 15794          | $ 442


entergy louisiana , llc subsidiaries management 2019s financial discussion analysis in industrial usage due to increased demand from new customers expansion projects  primarily in chemicals industry.
 louisiana act 55 financing savings obligation variance results from regulatory charge for tax savings shared with customers per agreement approved by lpsc.
 tax savings resulted from 2010-2011 irs audit settlement treatment louisiana act 55 financing of storm costs for hurricane gustav hurricane ike.
 see note 3 to financial statements for additional discussion of settlement benefit sharing.
 provision of $ 23 million recorded in 2016 related to settlement of waterford 3 replacement steam generator prudence review proceeding  offset by provision of $ 32 million in 2015 related to uncertainty associated with resolution of waterford 3 replacement steam generator prudence review proceeding.
 see note 2 to financial statements for discussion of waterford 3 replacement steam generator prudence review proceeding.
 2015 compared to 2014 net revenue consists of operating revenues net of fuel , fuel-related expenses  gas purchased for resale  2 ) purchased power expenses  3 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2015 to 2014.
 amount ( in millions ).
 retail electric price variance due to formula rate plan increases  approved by lpsc  effective december 2014 january 2015.
 entergy louisiana 2019s formula rate plan increases discussed in note 2 to financial statements.
 volume/weather variance due to increase of 841 gwh , or 2% ( 2 % ) , in billed electricity usage  result increased industrial usage due to increased demand for existing large refinery customers , new customers  expansion projects in chemicals industry partially offset by decrease in demand in chemicals industry seasonal outage for existing customer.
 waterford 3 replacement steam generator provision due to regulatory charge of approximately $ 32 million recorded in 2015 related to uncertainty with resolution waterford 3 replacement steam generator project.
 see note 2 financial statements for discussion of waterford 3 replacement steam generator prudence review proceeding.
 miso deferral variance due to deferral in 2014 of non-fuel miso-related charges approved by lpsc.
 deferral non-fuel miso-related charges partially offset in other operation and maintenance expenses.
 see note 2 financial statements for discussion of recovery of non-fuel miso-related charges.

| amount ( in millions )
------------------------------------------------- | ----------------------
2014 net revenue                                  | $ 2246.1
retail electric price                             | 180.0
volume/weather                                    | 39.5
waterford 3 replacement steam generator provision | -32.0 ( 32.0 )
miso deferral                                     | -32.0 ( 32.0 )
other                                             | 7.2
2015 net revenue                                  | $ 2408.8


( 3 ) refer to note 2 201csummary of significant accounting principles practices 201d for further information.
 13.
 employee benefitsp defined contribution savings plans aon maintains defined contribution savings plans for benefit employees.
 expense recognized for these plans included in compensation benefits in consolidated statements of income.
 expense for significant plans in u. s. ,. k.  netherlands canada is as follows ( in millions ) :.
 pension other postretirement benefits company sponsors defined benefit pension postretirement health and welfare plans provide retirement medical life insurance benefits.
 postretirement health care plans are contributory  retiree contributions adjusted annually aa life insurance pension plans are generally noncontributory.
 significant u. s. netherlands canadian pension plans closed to new entrants.

years ended december 31 | 2018  | 2017  | 2016
----------------------- | ----- | ----- | -----
u.s .                   | $ 98  | $ 105 | $ 121
u.k .                   | 45    | 43    | 43
netherlands and canada  | 25    | 25    | 27
total                   | $ 168 | $ 173 | $ 191


bhge 2017 form 10-k | 103 part iii item 10.
 directors  executive officers corporate governance information code of conduct , spirit letter  code of ethical conduct certificates for principal executive officer  principal financial officer principal accounting officer described in item 1.
 business of annual report.
 information directors in sections entitled "proposal no.
 1 , election of directors - board nominees for directors" "corporate governance - committees of board" in definitive proxy statement for 2018 annual meeting of stockholders filed with sec pursuant exchange act within 120 days of end of fiscal year on december 31, 2017 ( "proxy statement" ) sections incorporated herein by reference.
 for information executive officers  see "item 1.
 business - executive officers of baker hughes" in annual report on form 10-k.
 additional information compliance by directors executive officers with section 16 ( a ) of exchange act under section "section 16 ( a ) beneficial ownership reporting compliance" in proxy statement  section incorporated herein by reference.
 item 11.
 executive compensation information item in following sections of proxy statement sections incorporated herein by reference : "compensation discussion and analysis" "director compensation" "compensation committee interlocks insider participation" "compensation committee report. " item 12.
 security ownership of certain beneficial owners management related stockholder matters information concerning security ownership certain beneficial owners management in sections entitled "stock ownership of certain beneficial owners" 201cstock ownership of section 16 ( a ) director and executive officers 201d ) in proxy statement  sections incorporated herein by reference.
 permit employees  officers directors to enter into written trading plans complying with rule 10b5-1 under exchange act.
rule 10b5-1 provides criteria individual may establish prearranged plan to buy or sell specified number of shares of company's stock over set period time.
 plan must be entered in good faith time individual not in possession of material , nonpublic information.
 if individual establishes plan satisfying requirements rule 10b5-1  subsequent receipt of material  nonpublic information will not prevent transactions plan from executed.
 certain officers advised us may enter into stock sales plans for sale of shares of our class a common stock intended to comply with requirements of rule 10b5-1 of exchange act.
 company may future enter into repurchases of our class common stock under plan complies with rule 10b5-1 or rule 10b-18 of exchange act.
 equity compensation plan information information in following table is presented as of december 31, 2017 with respect to shares of our class a common stock may be issued under our lti plan approved by stockholders ( in millions , except per share prices ).
 equity compensation plan category number of securities to be issued upon exercise of outstanding options , warrants and rights weighted average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in first column ).

equity compensation plancategory | number ofsecurities to beissued uponexercise ofoutstandingoptions warrantsand rights | weighted averageexercise price ofoutstandingoptions warrantsand rights | number of securitiesremaining availablefor future issuanceunder equitycompensation plans ( excluding securitiesreflected in the firstcolumn )
-------------------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------
stockholder-approved plans       | 1.6                                                                                | $ 36.61                                                                | 53.7
nonstockholder-approved plans    | 2014                                                                                | 2014                                                                   | 2014
total                            | 1.6                                                                                | $ 36.61                                                                | 53.7


supplementary information on oil gas producing activities unaudited ) summary of changes in standardized measure discounted future net cash flows to proved oil gas reserves ( in millions ) 2006 2005 2004 sales transfers of oil gas produced  net production  transportation administrative costs $ ( 5312 ) $ ( 3754 ) $ ( 2689 ) net changes in prices production transportation administrative costs related to future production ( 1342 ) 6648 771.

( in millions )                                                                                | 2006             | 2005             | 2004
--------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
sales and transfers of oil and gas produced net of production transportation and administrative costs     | $ -5312 ( 5312 ) | $ -3754 ( 3754 ) | $ -2689 ( 2689 )
net changes in prices and production transportation and administrative costs related to future production | -1342 ( 1342 )   | 6648             | 771
extensions discoveries and improved recovery less related costs                                           | 1290             | 700              | 1349
development costs incurred during the period                                                              | 1251             | 1030             | 609
changes in estimated future development costs                                                             | -527 ( 527 )     | -552 ( 552 )     | -628 ( 628 )
revisions of previous quantity estimates                                                                  | 1319             | 820              | 948
net changes in purchases and sales of minerals in place                                                   | 30               | 4557             | 33
accretion of discount                                                                                | 1882             | 1124             | 757
net change in income taxes                                                                                | -660 ( 660 )     | -6694 ( 6694 )   | -627 ( 627 )
timing and other                                                                                | -14 ( 14 )       | 307              | 97
net change for the year                                                                                | -2083 ( 2083 )   | 4186             | 620
beginning of year                                                                                | 10601            | 6415             | 5795
end of year                                                                                | $ 8518           | $ 10601          | $ 6415
net change for the year from discontinued operations                                                      | $ -216 ( 216 )   | $ 162            | $ -152 ( 152 )


advance auto parts , inc.
 schedule ii - valuation qualifying accounts ( in thousands ) allowance for doubtful accounts receivable : balance beginning period charges expenses deductions balance end of period january 3 , 2015 $ 13295 $ 17182 $ ( 14325 ) ( 1 ) $ 16152 january 2 , 2016 16152 22067 ( 12461 ) ( 1 ) 25758 december 31, 2016 25758 24597 ( 21191 ) ( 1 ) 29164 ( 1 ) accounts written off during period.
 amounts impact company 2019s statement operations any year.
 other valuation qualifying accounts not reported in schedule not applicable or information included elsewhere in report.
 advance auto parts  inc.
 schedule ii - valuation qualifying accounts ( in thousands ) allowance for doubtful accounts receivable balance beginning period charges to expenses deductions balance end of period january 3 , 2015 $ 13295 $ 17182 $ ( 14325 ) ( 1 ) $ 16152 january 2, 2016 16152 22067 ( 12461 ) ( 1 ) 25758 december 31 , 2016 25758 24597 ( 21191 ) ( 1 ) 29164 ( 1 ) accounts written off during period.
 amounts impact company 2019s statement of operations any year.
 other valuation qualifying accounts not reported in schedule not applicable or information included elsewhere in.

allowance for doubtful accounts receivable: | balance atbeginningof period | charges toexpenses | deductions         |          | balance atend ofperiod
------------------------------------------- | ---------------------------- | ------------------ | ------------------ | -------- | ----------------------
january 3 2015                              | $ 13295                      | $ 17182            | $ -14325 ( 14325 ) | -1 ( 1 ) | $ 16152
january 2 2016                              | 16152                        | 22067              | -12461 ( 12461 )   | -1 ( 1 ) | 25758
december 31 2016                            | 25758                        | 24597              | -21191 ( 21191 )   | -1 ( 1 ) | 29164


notes to consolidated financial statements derivatives with credit-related contingent features firm 2019s derivatives transacted under bilateral agreements with counterparties may require firm to post collateral or terminate transactions based on changes in firm 2019s credit ratings.
 firm assesses impact of bilateral agreements by determining collateral or termination payments assuming downgrade by all rating agencies.
 downgrade by any one rating agency  depending on agency 2019s relative ratings firm at time downgrade may have impact comparable to impact downgrade by all rating agencies.
 table below presents aggregate fair value of net derivative liabilities under agreements ( excluding application collateral posted to reduce liabilities ) related aggregate fair value of assets posted as collateral  additional collateral or termination payments could called at reporting date by counterparties in one-notch and two-notch downgrade in firm 2019s credit ratings.
 additional collateral or termination payments for one-notch downgrade 911 1534 additional collateral or termination payments for two-notch downgrade 2989 2500 credit derivatives firm enters into broad array of credit derivatives in locations around world to facilitate client transactions manage credit risk associated with market- making investing lending activities.
 credit derivatives actively managed based on firm 2019s net risk position.
 credit derivatives are individually negotiated contracts can have various settlement and payment conventions.
 credit events include failure to pay  bankruptcy  acceleration of indebtedness  restructuring  repudiation dissolution of reference entity.
 credit default swaps.
 single-name credit default swaps protect buyer against loss of principal on or more bonds  loans or mortgages ( reference obligations ) in issuer ( reference entity ) of reference obligations suffers a credit event.
buyer of protection pays initial or periodic premium to seller and receives protection for period of contract.
 if no credit event , defined in contract, seller of protection makes no payments to buyer of protection.
 if credit event occurs , seller of protection required to make payment to buyer of protection , calculated in accordance with terms of contract.
 credit indices , baskets and tranches.
 credit derivatives may reference basket of single-name credit default swaps or broad-based index.
 if credit event occurs in underlying reference obligations, protection seller pays protection buyer.
 payment is typically pro-rata portion of transaction 2019s total notional amount based on underlying defaulted reference obligation.
 in certain transactions  credit risk of basket or index is separated into various portions ( tranches ) each having different levels of subordination.
 most junior tranches cover initial defaults once losses exceed notional amount of junior tranches , excess loss covered by next most senior tranche in capital structure.
 total return swaps.
 total return swap transfers risks relating to economic performance of reference obligation from protection buyer to protection seller.
 typically protection buyer receives from protection seller floating rate of interest and protection against reduction in fair value of reference obligation  in return protection seller receives cash flows associated with reference obligation  plus any increase in fair value of reference obligation.
 credit options.
 in credit option , option writer assumes obligation to purchase or sell reference obligation at specified price or credit spread.
 option purchaser buys right  but does not assume obligation to sell reference obligation to or purchase from  option writer.
 payments on credit options depend either on particular credit spread or price of reference obligation.
 goldman sachs 2013 annual report 147

in millions                                                             | as of december 2013 | as of december 2012
----------------------------------------------------------------------- | ------------------- | -------------------
net derivative liabilities under bilateral agreements                   | $ 22176             | $ 27885
collateral posted                                                       | 18178               | 24296
additional collateral or termination payments for a one-notch downgrade | 911                 | 1534
additional collateral or termination payments for a two-notch downgrade | 2989                | 2500


company expects annual amortization expense for intangible assets to be:.
 g.
 grant accounting company 2019s foreign subsidiaries received grants from governmental agencies.
 grants include capital , employment research and development grants.
 capital grants for acquisition of property and equipment netted against related capital expenditures amortized as credit to depreciation expense over useful life of related asset.
 employment grants  relate to employee hiring and training, research and development grants recognized in earnings in period related expenditures incurred by company.
.
 translation of foreign currencies functional currency for company 2019s foreign sales and research and development operations is applicable local currency.
 gains and losses from translation of foreign currencies into.
 dollars recorded in accumulated other comprehensive ( loss ) income.
 transaction gains and losses and remeasurement of foreign currency denominated assets and liabilities included in income including at company 2019s principal foreign manufacturing operations where functional currency is u. s.
 dollar.
 foreign currency transaction gains or losses included in other expenses net not material in fiscal 2010 , 2009 or 2008.
.
 derivative instruments and hedging agreements foreign exchange exposure management 2014 company enters into forward foreign currency exchange contracts to offset operational and balance sheet exposures from impact of changes in foreign currency exchange rates.
 such exposures result from portion company 2019s operations , assets and liabilities denominated in currencies other than.
 dollar primarily euro ; other exposures include philippine peso and british pound.
 foreign currency exchange contracts entered to support transactions in normal course of business not speculative in nature.
 contracts for periods consistent with terms of underlying transactions  generally one year or less.
hedges related to anticipated transactions designated documented at inception as cash flow hedges evaluated for effectiveness monthly.
 derivative instruments employed to eliminate or minimize foreign currency exposures confidently identified and quantified.
 terms of contract and underlying transaction matched at inception forward contract effectiveness calculated by comparing change in fair value of contract to change in forward value of anticipated transaction effective portion of gain or loss on derivative instrument reported as component of accumulated other comprehensive ( loss ) income ( ) in shareholders 2019 equity reclassified into earnings in same period during hedged transaction affects earnings.
 residual change in fair value of instruments or ineffectiveness recognized immediately in other ( income ) expense.
 company enters into forward foreign currency contracts that economically hedge gains and losses generated by remeasurement of certain recorded assets and liabilities in non-functional currency.
 changes in fair value of these undesignated hedges recognized in other ( income ) expense immediately as offset to changes in fair value of asset or liability being hedged.
 as of october 30 , 2010 and october 31 , 2009 total notional amount of these undesignated hedges was $ 42. 1 million and $ 38 million , respectively.
 fair value of these hedging instruments in company 2019s condensed consolidated balance sheets of october 2009 was immaterial.
 interest rate exposure management 2014 on june 30 , 2009 company entered into interest rate swap transactions related to outstanding 5% ( 5 % ) senior unsecured notes company swapped notional amount of $ 375 million of fixed rate debt at 5. 0% ( 5. 0 % ) into floating interest rate debt through july 1 , 2014.
 under terms of swaps company will receive on $ 375 million notional amount a 5. 0% ( 5.0 % ) annual interest payment analog devices .
 notes consolidated financial statements 2014 continued )

fiscal year | amortization expense
----------- | --------------------
2011        | $ 1343


.
 principal cost drivers include manufacturing efficiency raw material energy costs freight costs.
 printing papers net sales 2014 decreased 8% ( 8 % ) to $ 5. 7 billion compared with $ 6. 2 billion 2013 8% ( 8 % ) compared with $ 6. 2 billion in 2012.
 operating profits 2014 106% ( 106 % ) lower than 2013 103% ( 103 % ) lower than 2012.
 excluding facility closure costs impairment costs special items operating profits 2014 7% ( 7 % ) higher than 2013 8% ( 8 % ) lower than 2012.
 benefits from higher average sales price realizations favorable mix ( $ 178 million ) lower planned maintenance downtime costs ( $ 26 million ) absence of provision for bad debt related to large envelope customer booked in 2013 ( $ 28 million ) lower foreign exchange other costs ( $ 25 million ) offset by lower sales volumes ( $ 82 million ) higher operating costs ( $ 49 million ) higher input costs ( $ 47 million ) costs associated with closure of courtland , alabama mill ( $ 41 million ).
 operating profits 2014 include special items costs of $ 554 million associated with closure of courtland , alabama mill.
 during 2013 company accelerated depreciation for certain courtland assets evaluated other assets for alternative uses.
 net book value of assets at december 31 , 2013 was approximately $ 470 million.
 first quarter of 2014 evaluation concluded no alternative uses for assets.
 recognized approximately $ 464 million of accelerated depreciation related to assets in 2014.
operating profits 2014 include charge $ 32 million with foreign tax amnesty program gain $ 20 million for resolution legal contingency in india operating profits 2013 included costs $ 118 million with announced closure of courtland , alabama mill $ 123 million impairment charge with goodwill trade name intangible asset in india papers business.
 printing papers.
 north american printing papers net sales were $ 2. 1 billion in 2014 , $ 2. 6 billion in 2013 $ 2. 7 billion in 2012.
 operating profits 2014 were loss of $ 398 million ( gain $ 156 million excluding costs shutdown of courtland, alabama mill ) compared with gains $ 36 million ( $ 154 million excluding costs courtland mill shutdown ) in 2013 $ 331 million in 2012.
 sales volumes in 2014 decreased 2013 due to lower market demand for uncoated freesheet paper closure courtland mill.
 average sales price realizations higher reflecting sales price increases in domestic and export markets.
 higher input costs for wood offset by lower costs for chemicals freight costs higher.
 planned maintenance downtime costs were $ 14 million lower in 2014.
 operating profits 2014 negatively impacted by costs shutdown of courtland , alabama mill benefited from absence of provision for bad debt related to large envelope customer recorded in 2013.
 first quarter of 2015 sales volumes expected to be stable compared with fourth quarter 2014.
 average sales margins should improve reflecting more favorable mix average sales price realizations expected be flat.
 input costs expected stable.
 planned maintenance downtime costs expected be about $ 16 million lower with outage scheduled in 2015 first quarter at georgetown mill compared with outages at eastover and riverdale mills in 2014 fourth quarter.
 brazilian papers net sales for 2014 were $ 1. 1 billion compared with $ 1.1 billion in 2013 $ 1. 1 billion 2012.
 operating profits for 2014 were $ 177 million ( $ 209 million excluding costs tax amnesty program ) compared with $ 210 million 2013 $ 163 million 2012.
 sales volumes 2014 flat compared with 2013.
 average sales price realizations improved for domestic uncoated freesheet paper due to price increases second half 2013 2014.
 margins affected by increased proportion sales to higher-margin domestic market.
 raw material costs increased for wood chemicals.
 operating costs higher than 2013 planned maintenance downtime costs flat.
 2015 sales volumes first quarter expected to decrease due to seasonally weaker customer demand for uncoated freesheet paper.
 average sales price improvements expected reflect partial realization of announced sales price increases brazilian domestic market for uncoated freesheet paper.
 input costs expected flat.
 planned maintenance outage costs should $ 5 million lower with outage scheduled at luiz antonio mill first quarter.
 european papers net sales 2014 were $ 1. 5 billion compared with $ 1. 5 billion 2013 $ 1. 4 billion in 2012.
 operating profits 2014 were $ 140 million compared with $ 167 million 2013 $ 179 million in compared with 2013 sales volumes for uncoated freesheet paper 2014 slightly higher both

in millions               | 2014       | 2013   | 2012
------------------------- | ---------- | ------ | ------
sales                     | $ 5720     | $ 6205 | $ 6230
operating profit ( loss ) | -16 ( 16 ) | 271    | 599


foreign currency exchange rate risk many non-u. s.
 companies maintain assets and liabilities in local currencies.
 foreign exchange rate risk limited to net assets denominated in those foreign currencies.
 foreign exchange rate risk reviewed as part of our risk management process.
 locally required capital levels invested in home currencies to satisfy regulatory require- ments and support local insurance operations regardless of currency fluctuations.
 principal currencies creating foreign exchange risk for are british pound sterling , euro , canadian dollar.
 following table provides more information on exposure to foreign exchange rate risk at december 31 , 2008 and 2007.
 reinsurance of gmdb and gmib guarantees net income impacted by changes in reserves calculated in connection with reinsurance of variable annuity guarantees  primarily gmdb and gmib.
 reserves are calculated in accordance with sop 03-1 ( sop reserves ) changes in reserves reflected as life and annuity benefit expense  included in life underwriting income.
 net income impacted by change in fair value of gmib liability ( fvl ) classified as derivative according to fas 133.
 fair value liability for gmib reinsurance contract represents differ- ence between fair value of contract and sop 03-1 reserves.
 changes in fair value of gmib liability  net of associated changes in calculated sop 03-1 reserve  reflected as realized gains or losses.
 our variable annuity reinsurance business similar risk profile to of catastrophe reinsurance  probability of long-term economic loss small at time of pricing.
 adverse changes in market factors and policyholder behavior impact on life underwriting income and net income.
evaluating risks , we expect to be compensated for risk of cumulative long-term economic net loss  short-term accounting variations caused by market movements.
 we evaluate this business in terms of long-term eco- nomic risk and reward.
 ultimate risk to variable annuity guaranty reinsurance business is long-term underperformance of investment returns exacerbated by long-term reduction in interest rates.
 following market downturn , continued market underperformance over five to seven years would result in higher level of paid claims as policyholders accessed guarantees through death or annuitization.
 if market conditions improved following downturn sop 03-1 reserves and fair value liability would fall reflecting decreased likelihood of future claims result in increase in life underwriting income and net income.
 as of december 31 , 2008  management established sop 03-1 reserve based on benefit ratio calculated using actual market values at december 31 , 2008.
 management exercises judgment in determining extent to short-term market movements impact sop 03-1 reserve.
 sop 03-1 reserve based on calculation of long-term benefit ratio ( or loss ratio ) for variable annuity guarantee reinsurance.
 despite long-term nature risk benefit ratio calculation impacted by short-term market movements may be judged by management to temporary or transient.
 management will  in with language in sop 03-1  regularly examine quantitative and qualitative analysis and management will determine if change in calculated benefit ratio is of sufficient magnitude and persisted for sufficient duration to warrant change in benefit ratio used to establish sop 03-1 reserve.
 this has no impact on premium received or claims paid nor impact long-term profit or loss of variable annuity guaran- tee reinsurance.
sop 03-1 reserve fair value liability calculations affected by market factors  including equity levels interest rate levels credit risk implied volatilities  policyholder behaviors  annuitization lapse rates.
 table below shows sensitivity  as of december 31 , 2008 , of sop 03-1 reserves fair value liability associated with variable annuity guarantee reinsurance portfolio.
 tables below show sensitivity of fair value of specific derivative instruments held ( hedge value )  includes instruments purchased in january 2009 , to partially offset risk in variable annuity guarantee reinsurance portfolio.
 these derivatives do not receive hedge accounting treatment  some portion of change in value may be used to offset changes in sop 03-1 reserve.

( in millions of u.s . dollars )                                                      | 2008           | 2007
------------------------------------------------------------------------------------- | -------------- | --------------
fair value of net assets denominated in foreign currencies                            | $ 1127         | $ 1651
percentage of fair value of total net assets                                          | 7.8% ( 7.8 % ) | 9.9% ( 9.9 % )
pre-tax impact on equity of hypothetical 10 percent strengthening of the u.s . dollar | $ 84           | $ 150


table of contents cdw corporation and subsidiaries method or straight-line method  applicable.
 company classifies deferred financing costs as direct deduction from carrying value of long-term debt liability on consolidated balance sheets except for deferred financing costs associated with revolving credit facilities presented as asset  within other assets on consolidated balance sheets.
 derivative instruments company has interest rate cap agreements for hedging exposure to fluctuations interest rates.
 interest rate cap agreements designated as cash flow hedges of interest rate risk recorded at fair value in other assets on consolidated balance sheets.
 gain or loss on derivative instruments reported as component of accumulated other comprehensive loss until reclassified to interest expense same period hedge transaction affects earnings.
 fair value measurements fair value defined under gaap as price received to sell asset or paid to transfer liability in orderly transaction between market participants at measurement date.
 fair value hierarchy established for valuation inputs to prioritize inputs into three levels based on extent inputs used in measuring fair value observable in market.
 each fair value measurement reported in one of three levels determined by lowest level input significant to fair value measurement entirety.
 these levels are : level 1 2013 observable inputs quoted prices for identical instruments traded in active markets.
 level 2 2013 inputs based on quoted prices for similar instruments in active markets , quoted prices for identical similar instruments in markets not active model-based valuation techniques for all significant assumptions observable in market or corroborated by observable market data for full term of assets or liabilities.
 level 3 2013 inputs generally unobservable reflect management 2019s estimates of assumptions market participants use in pricing asset or liability.
fair values determined using model-based techniques include option pricing models , discounted cash flow models similar techniques.
 accumulated other comprehensive loss components of accumulated other comprehensive loss included in stockholders 2019 equity are as follows:.
 revenue recognition company is a primary distribution channel for large group of vendors and suppliers , including original equipment manufacturers ( 201coems 201d ) , software publishers  wholesale distributors cloud providers.
 company records revenue from sales transactions when title and risk of loss passed to customer , persuasive evidence of arrangement for sale , delivery occurred/or services rendered  sales price fixed or determinable  collectability assured.
 company 2019s shipping terms typically specify f. o. b.
 destination , at time title and risk of loss passed to customer.
 revenues from sales of hardware products software licenses recognized on gross basis with selling price to customer recorded as sales acquisition cost of product recorded as cost of sales.
 these items can be delivered to customers in variety of ways , including as physical product shipped from company 2019s warehouse  ii via drop-shipment by vendor or supplier  or iii ) via electronic delivery for software licenses.
 at time of sale  company records estimate for sales returns and allowances based on historical experience.
 company 2019s vendor partners warrant most of products company sells.
 company leverages drop-shipment arrangements with vendors suppliers to deliver products to customers without to physically hold inventory at warehouses , increasing efficiency reducing

( in millions )                       | years ended december 31 , 2017 | years ended december 31 , 2016 | years ended december 31 , 2015
------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
foreign currency translation          | $ -96.1 ( 96.1 )               | $ -139.6 ( 139.6 )             | $ -61.1 ( 61.1 )
unrealized gain from hedge accounting | 0.2                            | 2014                           | 2014
accumulated other comprehensive loss  | $ -95.9 ( 95.9 )               | $ -139.6 ( 139.6 )             | $ -61.1 ( 61.1 )


capital resources liquidity capital resources overview capital historically generated by earnings from citi 2019s operating businesses.
 citi may augment capital through issuances of common stock , convertible preferred stock , preferred stock  equity issued through awards under employee benefit plans  in of regulatory capital  through issuance of subordinated debt underlying trust preferred securities.
 impact of future events on citi 2019s business results  corporate asset dispositions changes in accounting standards affect citi 2019s capital levels.
 capital used primarily to support assets in citi 2019s businesses absorb market , credit  operational losses.
 capital may be used for other purposes to pay dividends or repurchase common stock citi 2019s ability to utilize capital for these purposes restricted due to agreements with u. s.
 government  for so long as u. s.
 government continues to hold citi 2019s common stock or trust preferred securities.
 see also 201csupervision and regulation 201d below.
 citigroup 2019s capital management framework designed to ensure citigroup principal subsidiaries maintain sufficient capital consistent with citi 2019s risk profile applicable regulatory standards guidelines external rating agency considerations.
 capital management process centrally overseen by senior management reviewed at consolidated , legal entity  country level.
 senior management responsible for capital management process mainly through citigroup 2019s finance and asset and liability committee ( finalco ) with oversight from risk management and finance committee of citigroup 2019s board of directors.
 finalco composed of senior-most management of citigroup for engaging management in decision-making discussions on capital and liquidity matters.
finalco 2019s responsibilities include determining financial structure of citigroup principal subsidiaries ; ensuring citigroup regulated entities adequately capitalized in consultation with regulators ; determining appropriate asset levels return hurdles for citigroup individual businesses reviewing funding capital markets plan for citigroup monitoring interest rate risk  corporate bank liquidity  impact of currency translation on non-u. s.
 earnings capital.
 capital ratios citigroup subject to risk-based capital guidelines issued by federal reserve board.
 historically capital adequacy measured based on two risk-based capital ratios , tier 1 capital and total capital ( tier 1 capital + tier 2 capital ) ratios.
 tier 1 capital consists of sum of 201ccore capital elements , 201d qualifying common stockholders 2019 equity , adjusted , qualifying noncontrolling interests  qualifying mandatorily redeemable securities of subsidiary trusts  principally reduced by goodwill  other disallowed intangible assets  disallowed deferred tax assets.
 total capital includes 201csupplementary 201d tier 2 capital elements  qualifying subordinated debt limited portion of allowance for credit losses.
 both measures of capital adequacy stated as percentage of risk-weighted assets.
 with 2009 supervisory capital assessment program ( scap ) u. s.
 banking regulators developed new measure of capital termed 201ctier 1 common , 201d defined as tier 1 capital less non-common elements , including qualifying perpetual preferred stock , qualifying noncontrolling interests , qualifying mandatorily redeemable securities of subsidiary trusts.
 citigroup 2019s risk-weighted assets derived from application risk-based capital guidelines related to measurement of credit risk.
these guidelines on-balance-sheet assets and credit equivalent amount of certain off-balance-sheet exposures ( financial guarantees  unfunded lending commitments letters of credit derivatives ) assigned to prescribed risk-weight categories based upon perceived credit risk associated with obligor guarantor nature of collateral external credit ratings.
 risk-weighted assets incorporate measure for market risk on covered trading account positions all foreign exchange and commodity positions or not carried in trading account.
 excluded from risk-weighted assets are any assets goodwill and deferred tax assets , to extent required to be deducted from regulatory capital.
 see 201ccomponents of capital under regulatory guidelines 201d below.
 citigroup subject to leverage ratio requirement , non-risk-based measure of capital adequacy defined as tier 1 capital as percentage of quarterly adjusted average total assets.
 to be 201cwell capitalized 201d under federal bank regulatory agency definitions bank holding company must have tier 1 capital ratio of at least 6% ( 6 % )  total capital ratio of at least 10% ( 10 % ) leverage ratio of at least 3% ( 3 % )  not subject to federal reserve board directive to maintain higher capital levels.
 following table sets citigroup 2019s regulatory capital ratios as of december 31 , 2009 and december 31 , 2008.
 citigroup regulatory capital ratios.
 citigroup was 201cwell capitalized 201d under federal bank regulatory agency definitions at year end for both 2009 and 2008.

at year end                                         | 2009             | 2008
--------------------------------------------------- | ---------------- | ----------------
tier 1 common                                       | 9.60% ( 9.60 % ) | 2.30% ( 2.30 % )
tier 1 capital                                      | 11.67            | 11.92
total capital ( tier 1 capital and tier 2 capital ) | 15.25            | 15.70
leverage                                            | 6.89             | 6.08


jpmorgan chase & co. /2018 form 10-k 117 lending-related commitments firm uses lending-related financial instruments  commitments ( including revolving credit facilities ) and guarantees , to address financing needs of clients.
 contractual amounts financial instruments represent maximum possible credit risk should clients draw down on commitments or firm fulfill obligations under guarantees clients fail to perform according to terms contracts.
 most commitments and guarantees are refinanced , extended  cancelled  or expire without drawn upon or default occurring.
 in firm 2019s view total contractual amount of wholesale lending-related commitments not representative of firm 2019s expected future credit exposure or funding requirements.
 for further information on wholesale lending-related commitments , refer to note 27.
 clearing services firm provides clearing services for clients entering certain securities and derivative contracts.
 services firm exposed to risk of non-performance by clients may be required to share in losses incurred by ccps.
 possible firm seeks to mitigate credit risk clients through collection of adequate margin at inception throughout life transactions can cease provision of clearing services if clients do not adhere to obligations under clearing agreement.
 for further discussion of clearing services , refer to note 27.
 derivative contracts derivatives enable clients counterparties to manage risks including credit risk and risks from fluctuations in interest rates  foreign exchange  equities  commodities.
 firm makes markets in derivatives to meet needs uses derivatives to manage certain risks associated with net open risk positions from market-making activities including counterparty credit risk arising from derivative receivables.
 firm also uses derivative instruments to manage its own credit and other market risk exposure.
 nature of counterparty and settlement mechanism of derivative affect credit risk to firm exposed.
otc derivatives firm exposed to credit risk of derivative counterparty.
 exchange-traded derivatives ( 201cetd 201d )  futures options  201ccleared 201d over-the-counter ( 201cotc-cleared 201d ) derivatives firm generally exposed to credit risk of relevant ccp.
 possible firm seeks to mitigate credit risk exposures from derivative contracts through use legally enforceable master netting arrangements collateral agreements.
 further discussion of derivative contracts  counterparties settlement types refer to note 5.
 following table summarizes net derivative receivables for periods presented.
 derivative receivables.
 ( a ) includes collateral related to derivative instruments where appropriate legal opinions not sought or obtained master netting agreements.
 fair value of derivative receivables reported on consolidated balance sheets were $ 54. 2 billion and $ 56. 5 billion at december 31, 2018 and 2017 respectively.
 derivative receivables represent fair value of derivative contracts after giving effect to legally enforceable master netting agreements cash collateral held by firm.
 management 2019s view appropriate measure of current credit risk should consideration additional liquid securities ( primarily.
 government and agency securities other group of seven nations ( 201cg7 201d ) government securities ) other cash collateral held firm aggregating $ 15. 3 billion and $ 16. 1 billion at december 31 , 2018 and 2017 respectively may be used as security when fair value of client 2019s exposure in firm 2019s favor.
in addition to collateral described in preceding paragraph firm holds additional collateral ( primarily cash , g7 government securities , other liquid government-agency and guaranteed securities  corporate debt and equity securities ) delivered by clients at initiation of transactions collateral related to contracts non-daily call frequency and collateral firm agreed to return but not yet settled as of reporting date.
 this collateral does not reduce balances not included in table available as security against potential exposure should fair value of client 2019s derivative contracts move in firm 2019s favor.
 derivative receivables fair value , net of all collateral  not include other credit enhancements  as letters of credit.
 for additional information on firm 2019s use of collateral agreements , refer to note 5.
 useful as current view of credit exposure net fair value of derivative receivables not capture potential future variability of credit exposure.
 to capture potential future variability of credit exposure  firm calculates  on client-by-client basis three measures of potential derivatives-related credit loss : peak , derivative risk equivalent ( 201cdre 201d )  average exposure ( 201cavg 201d ).
 these measures all incorporate netting and collateral benefits  where applicable.
 peak represents conservative measure of potential exposure to counterparty calculated equivalent to 97. 5% ( 97. 5 % ) confidence level over life of transaction.
 peak is primary measure used firm for setting of credit limits for derivative contracts , senior management reporting and derivatives exposure management.
 dre exposure is measure expresses risk of derivative exposure on basis intended to be

december 31 ( in millions )                                                           | 2018             | 2017
------------------------------------------------------------------------------------- | ---------------- | ----------------
total net of cash collateral                                                          | $ 54213          | $ 56523
liquid securities and other cash collateral held against derivative receivables ( a ) | -15322 ( 15322 ) | -16108 ( 16108 )
total net of all collateral                                                           | $ 38891          | $ 40415


inventory on hand  future purchase commitments with suppliers  considering multiple factors including demand forecasts  product life cycle  current sales levels  pricing strategy cost trends.
 if review indicates inventories of raw materials  components or finished products obsolete or in excess of anticipated demand or inventory cost exceeds net realizable value, we may be required to make adjustments impact results of operations.
 goodwill and non-amortizable intangible assets valuation - we test goodwill non-amortizable intangible assets for impairment annually or more frequently if events warrant review.
 company has option to perform qualitative assessment for goodwill and non-amortizable intangible assets to determine if likely impairment exists, company elects to perform quantitative assessment for annual impairment analysis.
 impairment analysis involves comparing fair value of each reporting unit or non-amortizable intangible asset to carrying value.
 if carrying value exceeds fair value , goodwill or non-amortizable intangible asset is considered impaired.
 to determine fair value of goodwill use discounted cash flow model supported by market approach using earnings multiples of comparable global and local companies within tobacco industry.
 at december 31 , 2018  carrying value of goodwill was $ 7. 2 billion  related to ten reporting units  each of group of markets with similar economic characteristics.
 estimated fair value of each of ten reporting units exceeded carrying value as of december 31 , 2018.
 to determine fair value of non-amortizable intangible assets  we primarily use discounted cash flow model applying relief-from-royalty method.
 concluded fair value of non- amortizable intangible assets exceeded carrying value.
discounted cash flow models include management assumptions relevant for forecasting operating cash flows subject to changes in business conditions volumes prices costs to produce discount rates estimated capital needs.
 management considers historical experience and available information at time fair values are estimated believe assumptions consistent with assumptions hypothetical marketplace participant would use.
 since march 28 , 2008  spin-off from altria group  inc. not recorded a charge to earnings for impairment of goodwill or non-amortizable intangible assets.
 marketing costs - we incur certain costs to support products through programs include advertising marketing  consumer engagement trade promotions.
 costs of advertising and marketing programs expensed in accordance with u. s.
.
 recognition of cost related to consumer engagement and trade promotion programs contain uncertainties due to judgment required in estimating potential performance and compliance for each program.
 for volume-based incentives provided to customers management assesses and estimates customer likelihood of customer's achieving specified targets records reduction of revenue as sales are made.
 for other trade promotions management relies on estimated utilization rates developed from historical experience.
 changes in assumptions in estimating cost of individual marketing program not result in material change in our financial position results of operations or operating cash flows.
 employee benefit plans - as discussed in item 8 , note 13.
 benefit plans to consolidated financial statements provide range of benefits to employees and retired employees including pensions  postretirement health care postemployment benefits ( primarily severance ).
 record annual amounts relating to these plans based on calculations specified by u. s.
.
 calculations include actuarial assumptions discount rates assumed rates of return on plan assets  compensation increases mortality  turnover rates health care cost trend rates.
review actuarial assumptions annual basis make modifications assumptions based on current rates trends when appropriate.
 permitted by u. s.
 gaap , effect of modifications generally amortized over future periods.
 believe assumptions in calculating obligations under plans are reasonable based historical experience advice from actuaries.
 weighted-average discount rate assumptions for pension postretirement plan obligations at december 31 , 2018 2017 are as follows:.
 anticipate assumption changes will increase 2019 pre-tax pension and postretirement expense to approximately $ 205 million compared with approximately $ 160 million in 2018, excluding amounts related to employee severance early retirement programs.
 anticipated increase primarily due to higher amortization of other comprehensive earnings for unrecognized actuarial gains/ losses of $ 14 million , lower return on assets of $ 16 million  higher interest and service cost of $ 12 million and $ 4 million respectively partially offset by other movements of $ 1 million.
 weighted-average expected rate of return discount rate assumptions significant effect on expense reported for employee benefit plans.
 fifty-basis-point decrease in discount rate would increase 2019 pension and postretirement expense by approximately $ 50 million  fifty-basis-point increase in discount rate decrease 2019 pension and postretirement

| 2018             | 2017
-------------------- | ---------------- | ----------------
pension plans        | 1.61% ( 1.61 % ) | 1.51% ( 1.51 % )
postretirement plans | 3.97% ( 3.97 % ) | 3.79% ( 3.79 % )


item 1b.
 unresolved staff comments.
 item 2.
 properties.
 corporate co-headquarters located in pittsburgh , pennsylvania chicago , illinois.
 co-headquarters leased house executive offices , u. s.
 business units , administrative , finance , human resource functions.
 maintain additional owned and leased offices throughout regions in we operate.
 manufacture products in network of manufacturing and processing facilities throughout world.
 as of december 31, 2016  operated 87 manufacturing and processing facilities.
 own 83 lease four facilities.
 manufacturing and processing facilities count by segment as of december 31 , 2016 was:.
 maintain all manufacturing and processing facilities in good condition believe suitable adequate for present needs.
 enter into co-manufacturing arrangements with third parties if advantageous to outsource production of products.
 in fourth quarter of 2016  reorganized segment structure to move russia business from rest of world segment to europe segment.
 reflected this change in table above.
 see note 18 , segment reporting , consolidated financial statements for additional information.
 several current manufacturing and processing facilities scheduled to be closed within next year.
 see note 3 , integration and restructuring expenses , consolidated financial statements for additional information.
 item 3.
 legal proceedings.
 routinely involved in legal proceedings , claims  governmental inquiries , inspections or investigations ( 201clegal matters 201d ) in ordinary course business.
 on april 1 , 2015 , commodity futures trading commission ( 201ccftc 201d ) filed formal complaint against mondel 0113z international ( formerly known as kraft foods inc. ) and kraft in u. s.
district court for northern district of illinois , eastern division  related to activities involving trading of december 2011 wheat futures contracts.
 complaint alleges mondel 0113z international and kraft 1 ) manipulated or attempted manipulate wheat markets during fall 2011  2 ) violated position limit levels for wheat futures  3 ) engaged in non-competitive trades by trading both sides of exchange-for-physical chicago board of trade wheat contracts.
 previously disclosed by kraft  activities arose prior to october 1 , 2012 spin-off of kraft by mondel 0113z international to shareholders involve business now owned and operated by mondel 0113z international or affiliates.
 separation and distribution agreement between kraft and mondel 0113z international  dated september 27 , 2012 governs allocation of liabilities between mondel 0113z international and kraft mondel 0113z international will predominantly bear costs matter and monetary penalties or other payments cftc may impose.
 do not expect this matter to material adverse effect on our financial condition  results of operations  or business.
 cannot predict certainty results of legal matters currently involved or may future be involved do not expect ultimate costs to resolve legal matters currently pending have material adverse effect on financial condition or results of operations.
 item 4.
 mine safety disclosures.
 not applicable.

| owned | leased
------------- | ----- | ------
united states | 43    | 2
canada        | 3     | 2014
europe        | 11    | 2014
rest of world | 26    | 2


hr solutions.
 in october 2010  completed acquisition of hewitt , world leading human resource consulting outsourcing companies.
 hewitt operates globally with aon 2019s existing consulting outsourcing operations under newly aon hewitt brand.
 hewitt 2019s operating results included in aon 2019s results operations beginning october 1 , 2010.
 hr solutions segment generated 25% ) of consolidated total revenues in 2010 provides broad range human capital services consulting services : 2022 health and benefits advises clients about structure fund administer employee benefit programs attract retain motivate employees.
 benefits consulting includes health and welfare  executive benefits  workforce strategies productivity  absence management  benefits administration  data-driven health  compliance  employee commitment  investment advisory elective benefits services.
 2022 retirement specializes in global actuarial services  defined contribution consulting  investment consulting  tax and erisa consulting  pension administration.
 2022 compensation focuses on compensatory advisory/counsel compensation planning design executive reward strategies salary survey benchmarking  market share studies sales force effectiveness  special expertise in financial services technology industries.
 2022 strategic human capital delivers advice to complex global organizations on talent , change organizational effectiveness issues talent strategy acquisition  executive on-boarding  performance management leadership assessment development communication strategy  workforce training change management.
 outsourcing services : 2022 benefits outsourcing applies hr expertise through defined benefit ( pension )  defined contribution ( 401 ( k ) )  health and welfare administrative services.
 our model replaces resource-intensive processes benefit plans with more efficient  effective less costly solutions.
2022 human resource business processing outsourcing ( 2018 2018hr bpo 2019 2019 ) provides market-leading solutions to manage employee data ; administer benefits , payroll other human resources processes ; record manage talent , workforce other core hr process transactions complementary services such absence management  flexible spending  dependent audit participant advocacy.
 beginning in late 2008 , disruption in global credit markets deterioration of financial markets created uncertainty in marketplace.
 weak economic conditions globally continued throughout 2010.
 prolonged economic downturn adversely impacting our clients 2019 financial condition levels of business activities in industries geographies where we operate.
 believe majority of practices well positioned to manage through this time , challenges reducing demand for some our services putting

years ended december 31, | 2010             | 2009             | 2008
------------------------ | ---------------- | ---------------- | ----------------
revenue                  | $ 2111           | $ 1267           | $ 1356
operating income         | 234              | 203              | 208
operating margin         | 11.1% ( 11.1 % ) | 16.0% ( 16.0 % ) | 15.3% ( 15.3 % )


pipeline transportation 2013 own system pipelines through marathon pipe line llc ( 201cmpl 201d ) ohio river pipe line llc ( 201corpl 201d ) wholly-owned subsidiaries.
 pipeline systems transport crude oil refined products midwest gulf coast regions to refineries terminals other pipeline systems.
 mpl and orpl wholly-owned undivided interest common carrier systems consist of 1737 miles crude oil lines 1825 miles refined product lines 32 systems in 11 states.
 mpl common carrier pipeline network one of largest petroleum pipeline systems in united states total barrels delivered.
 common carrier pipeline systems subject to state federal energy regulatory commission regulations guidelines including published tariffs for transportation of crude oil refined products.
 third parties generated 13 percent of crude oil refined product shipments on mpl and orpl common carrier pipelines in 2009.
 mpl orpl common carrier pipelines transported volumes shown in following table for last three years.
 pipeline barrels handled ( thousands of barrels per day ) 2009 2008 2007.
 own 196 miles of private crude oil pipelines 850 miles private refined products pipelines lease 217 miles of common carrier refined product pipelines.
 partial ownership interests in several pipeline companies approximately 780 miles of crude oil pipelines 3600 miles of refined products pipelines including 970 miles operated by mpl.
 mpl operates most of private pipelines 985 miles of crude oil 160 miles of natural gas pipelines owned by e&p segment.
 major refined product pipelines include owned and operated cardinal products pipeline wabash pipeline.
 cardinal products pipeline delivers refined products from kenova , west virginia to columbus , ohio.
wabash pipeline system delivers product from robinson  illinois to terminals in chicago , illinois.
 other significant refined product pipelines owned operated by mpl extend from robinson  to louisville  kentucky ; garyville , louisiana to zachary , louisiana texas city , texas to pasadena , texas.
 as of december 31 , 2009  interests in refined product pipelines : 2022 65 percent ownership interest in louisville-lexington system , petroleum products pipeline system from louisville to lexington , kentucky ; 2022 60 percent interest in muskegon pipeline llc  refined products pipeline from griffith , indiana to north muskegon , michigan ; 2022 50 percent interest in centennial pipeline llc  refined products system connecting gulf coast region with midwest market ; 2022 17 percent interest in explorer pipeline company  refined products pipeline system from gulf coast to midwest ; 2022 6 percent interest in wolverine pipe line company  products pipeline from chicago  illinois to toledo , ohio.
 major owned and operated crude oil lines run from : patoka , illinois to catlettsburg , kentucky ; patoka to robinson , illinois ; patoka to lima , ohio ; lima  ohio to canton , ohio ; samaria , michigan to detroit , michigan st.
 james , louisiana to garyville , louisiana.
 as of december 31 , 2009  interests in following crude oil pipelines : 2022 51 percent interest in loop llc , owner and operator of loop  only u.s.
 deepwater oil port  18 miles off coast louisiana  crude oil pipeline connecting port facility to storage caverns tanks at clovelly , louisiana ; 2022 59 percent interest in locap llc  owns crude oil pipeline connecting loop capline system;

( thousands of barrels per day ) | 2009 | 2008 | 2007
-------------------------------- | ---- | ---- | ----
crude oil trunk lines            | 1279 | 1405 | 1451
refined products trunk lines     | 953  | 960  | 1049
total                            | 2232 | 2365 | 2500


n o t e s c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s continued ) ace limited subsidiaries table shows changes in company 2019s stock options years ended december 31 , 2008 2007  number of options weighted average exercise price.
 weighted-average remaining contractual term was 5. 8 years for stock options outstanding 4. 6 years for stock options exercisable at december 31 , 2008.
 total intrinsic value approximately $ 66 million for stock options out- standing $ 81 million for stock options exercisable at december 31 , 2008.
 weighted-average fair value for stock options granted year ended december 31, 2008 was $ 17. 60.
 total intrinsic value for stock options exercised years ended december 31 , 2008 2007 2006 approximately $ 54 million , $ 44 million  $ 43 million  respectively.
 cash received year ended december 31 , 2008 from exercise stock options was $ 97 million.
 restricted stock company 2019s 2004 ltip provides for grants of restricted stock.
 company generally grants restricted stock with 4-year vesting period graded vesting schedule.
 restricted stock granted at market close price on date of grant.
 company 2019s share-based compensation expense year ended december 31 , 2008 portion of cost related to unvested restricted stock granted in years 2004 to 2008.

| number of options    | weightedaverageexercise price
------------------------------------ | -------------------- | -----------------------------
options outstanding december 31 2005 | 12643761             | $ 36.53
granted                              | 1505215              | $ 56.29
exercised                            | -1982560 ( 1982560 ) | $ 33.69
forfeited                            | -413895 ( 413895 )   | $ 39.71
options outstanding december 31 2006 | 11752521             | $ 39.43
granted                              | 1549091              | $ 56.17
exercised                            | -1830004 ( 1830004 ) | $ 35.73
forfeited                            | -200793 ( 200793 )   | $ 51.66
options outstanding december 31 2007 | 11270815             | $ 42.12
granted                              | 1612507              | $ 60.17
exercised                            | -2650733 ( 2650733 ) | $ 36.25
forfeited                            | -309026 ( 309026 )   | $ 54.31
options outstanding december 31 2008 | 9923563              | $ 46.24


payments ( receipts ) ( in millions ).
 in september 2016 ferc accepted february 2016 compliance filing subject to further compliance filing in november 2016.
 further compliance filing required result of order issued september 2016 ruling on january 2016 rehearing requests filed by lpsc  apsc  entergy.
 order addressing rehearing requests ferc granted lpsc 2019s rehearing request directed interest be calculated on payment/receipt amounts.
 ferc also granted apsc 2019s and entergy 2019s rehearing request ordered removal of securitized asset accumulated deferred income taxes and contra-securitization accumulated deferred income taxes from calculation.
 november 2016 entergy submitted compliance filing in response to ferc 2019s order rehearing.
 compliance filing included revised refund calculation of true-up payments and receipts based on 2009 test year data and interest calculations.
 lpsc protested interest calculations.
 november 2017 ferc issued order rejecting november 2016 compliance filing.
 ferc determined payments detailed in november 2016 compliance filing did not include adequate interest for payments from entergy arkansas to entergy louisiana because did not include interest on principal portion of payment made in february 2016.
 december 2017 entergy recalculated interest pursuant to november 2017 order.
 result of recalculations entergy arkansas owed minor payments to entergy louisiana  entergy mississippi  entergy new orleans.
 2011 rate filing based on calendar year 2010 production costs in may 2011 entergy filed with ferc 2011 rates in accordance with ferc 2019s orders in system agreement proceeding. a0several parties intervened in proceeding at ferc  including lpsc  also filed protest.a0 a0in july a02011 ferc a0accepted entergy 2019s proposed rates for filing a0effective june a01 , a02011 a0subject to refund.
 after proceeding schedule in december 2014 ferc consolidated 2011 rate filing with 2012 , 2013  2014 rate filings for settlement and hearing procedures.
 see discussion below regarding consolidated settlement and hearing procedures in connection with proceeding.
 2012 rate filing based on calendar year 2011 production costs in may 2012  entergy filed with ferc 2012 rates in accordance with ferc 2019s orders in system agreement proceeding. a0several parties intervened in proceeding at ferc including lpsc , filed protest. august 2012 ferc a0accepted entergy 2019s proposed rates for filing a0effective june a02012  a0subject to refund.
 proceeding schedule in december 2014 ferc consolidated 2012 rate filing with 2011 , 2013  2014 rate filings for settlement and hearing procedures.
 discussion below consolidated settlement and hearing procedures proceeding.
 2013 rate filing based on calendar year 2012 production costs in may 2013  entergy filed with ferc 2013 rates in accordance with ferc 2019s orders in system agreement proceeding.
 several parties intervened in proceeding at ferc including lpsc , filed protest.
 city council intervened and filed comments related to including outcome of related ferc proceeding in 2013 cost equalization calculation.
 in august 2013 ferc issued order accepting 2013 rates  effective june 1 , 2013 subject to refund.
 after proceeding schedule in december 2014 ferc consolidated 2013 rate filing with 2011 , 2012  2014 rate filings for settlement and hearing procedures.
 entergy corporation and subsidiaries notes to financial statements

| payments ( receipts ) ( in millions )
------------------- | -------------------------------------
entergy arkansas    | $ 2
entergy louisiana   | $ 6
entergy mississippi | ( $ 4 )
entergy new orleans | ( $ 1 )
entergy texas       | ( $ 3 )


table of contents discussion of nonoperating income and expense excludes results merger meaningful year-over-year comparison.
 interest expense  net of capitalized interest decreased $ 249 million in 2014 from 2013 due to $ 149 million decrease in special charges recognized year-over-year refinancing activities resulted in $ 100 million less interest expense recognized in 2014.
 in 2014 recognized $ 33 million of special charges to non-cash interest accretion on bankruptcy settlement obligations.
 in 2013  recognized $ 138 million of special charges to post-petition interest expense on unsecured obligations plan and penalty interest related to american 2019s 10. 5% ( 10. 5 % ) secured notes and 7. 50% ( 7. 50 % ) senior secured notes.
 in 2013 recorded special charges of $ 44 million for debt extinguishment costs repayment of certain aircraft secured indebtedness including cash interest charges non-cash write offs of unamortized debt issuance costs.
 result of 2013 refinancing activities early extinguishment of american 2019s 7. 50% ( 7. 50 % ) senior secured notes in 2014 recognized $ 100 million less interest expense in 2014 compared to 2013.
 other nonoperating expense  net in 2014 of $ 114 million of net foreign currency losses including $ 43 million special charge for venezuelan foreign currency losses $ 56 million in other nonoperating special charges primarily due to early debt extinguishment costs related to prepayment of 7. 50% ( 7. 50 % ) senior secured notes and other indebtedness.
 foreign currency losses driven by strengthening of u. s.
dollar relative to other currencies during 2014  principally latin american market including 48% ( 48 % ) decrease in value venezuelan bolivar 14% ( 14 % ) decrease in value brazilian real.
 other nonoperating expense  net in 2013 consisted principally of net foreign currency losses of $ 56 million early debt extinguishment charges $ 29 million.
 reorganization items  net reorganization items refer to revenues  expenses ( including professional fees )  realized gains losses provisions for losses realized incurred direct result of chapter 11 cases.
 following table summarizes components included in reorganization items  net on aag 2019s consolidated statement of operations for year ended december 31 , 2013 ( in millions ) :.
 exchange for employees 2019 contributions to successful reorganization including agreeing reductions in pay and benefits agreed plan to provide each employee group deemed claim  used provide distribution of portion of equity of reorganized entity to employees.
 each employee group received deemed claim amount based upon portion of value of cost savings provided by group through reductions to pay benefits certain work rule changes.
 total value of deemed claim was approximately $ 1. 7 billion.
 2 ) amounts include allowed claims ( claims approved by bankruptcy court ) estimated allowed claims relating to i rejection or modification of financings related to aircraft ii ) entry of orders treated as unsecured claims with respect facility agreements supporting certain issuances of special facility revenue bonds.
 debtors recorded estimated claim associated with rejection or modification of financing

| 2013
------------------------------------------------------------------------- | ------
labor-related deemed claim ( 1 )                                          | $ 1733
aircraft and facility financing renegotiations and rejections ( 2 ) ( 3 ) | 325
fair value of conversion discount ( 4 )                                   | 218
professional fees                                                         | 199
other                                                                     | 180
total reorganization items net                                            | $ 2655