brokerage and asset management asset management ( bam )  constituted 6% ( 6 % ) of citi holdings assets as of december 31 , 2009 consists of citi 2019s global retail brokerage and asset management businesses.
 segment affected reduced in size in 2009 due to divestitures of smith barney ( morgan stanley smith barney joint venture mssb jv ) and nikko cordial securities.
 at december 31 , 2009 bam had approximately $ 35 billion assets included $ 26 billion assets from 49% ( 49 % ) interest in mssb jv ( $ 13 billion investment and $ 13 billion in loans with clients ) and $ 9 billion assets from diverse asset management and insurance businesses half will be transferred into latam rcb during first quarter of 2010 under 201cciti holdings 201d.
 morgan stanley has options to purchase citi 2019s remaining stake in mssb jv over three years starting 2012.
 2009 results include $ 11. 1 billion gain ( $ 6. 7 billion after-tax ) on sale of smith barney.
 millions dollars 2009 2008 2007 % ( % ) change 2009 vs.
 2008 % % ) change 2008 vs.
 2007.
 2009 vs.
 2008 revenues net of interest expense increased 80% ( % ) versus prior year driven by $ 11. 1 billion pretax gain on sale ( $ 6. 7 billion after-tax ) on mssb jv transaction in second quarter of 2009 and $ 320 million pretax gain on sale of managed futures business to mssb jv in third quarter of 2009.
 revenue decreased due to absence of smith barney from may 2009 and absence of fourth-quarter revenue of nikko asset management offset by improvement in marks retail alternative investments.
revenues prior year include $ 347 million pretax gain on sale citistreet charges related to settlement auction rate securities $ 393 million pretax.
 operating expenses decreased 64% ( 64 % ) prior year driven by absence smith barney nikko asset management expenses re- engineering efforts absence 2008 one-time expenses ( $ 0. 9 billion intangible impairment  $ 0. 2 billion restructuring $ 0. 5 billion write- downs other charges ).
 provisions for loan losses benefits claims decreased 15% ( 15 % ) reflecting $ 50 million decrease in provision for benefits claims offset by increased reserve builds $ 28 million.
 assets decreased 40% ( 40 % ) versus prior year driven by sales of nikko cordial securities nikko asset management ( $ 25 billion ) managed futures business ( $ 1. 4 billion ) offset by increased smith barney assets $ 4 billion.
 2008 vs.
 2007 revenues  net of interest expense decreased 21% ( 21 % ) prior year due to lower transactional investment revenues in smith barney  lower revenues nikko asset management higher markdowns in retail alternative investments.
 operating expenses increased 16% ( 16 % ) versus prior year driven by $ 0. 9 billion intangible impairment in nikko asset management fourth quarter 2008  $ 0. 2 billion restructuring charges $ 0. 5 billion write-downs other charges.
 provisions for loan losses benefits claims increased $ 65 million prior year due to $ 52 million increase in provisions for benefits claims.
 assets increased 4% ( 4 % ) versus prior year.

in millions of dollars                                       | 2009     | 2008             | 2007    | % (  % ) change 2009 vs . 2008 | % (  % ) change 2008 vs . 2007
------------------------------------------------------------ | -------- | ---------------- | ------- | ------------------------------ | ------------------------------
net interest revenue                                         | $ 432    | $ 1224           | $ 908   | ( 65 ) % (  % )                | 35% ( 35 % )
non-interest revenue                                         | 14703    | 7199             | 9751    | nm                             | -26 ( 26 )
total revenues net of interest expense                       | $ 15135  | $ 8423           | $ 10659 | 80% ( 80 % )                   | ( 21 ) % (  % )
total operating expenses                                     | $ 3350   | $ 9236           | $ 7960  | ( 64 ) % (  % )                | 16% ( 16 % )
net credit losses                                            | $ 3      | $ 10             | $ 2014  | ( 70 ) % (  % )                | 2014
credit reserve build/ ( release )                            | 36       | 8                | 4       | nm                             | 100% ( 100 % )
provision for unfunded lending commitments                   | -5 ( 5 ) | 2014             | 2014    | 2014                           | 2014
provision for benefits and claims                            | $ 155    | $ 205            | $ 154   | ( 24 ) % (  % )                | 33% ( 33 % )
provisions for loan losses and for benefits and claims       | $ 189    | $ 223            | $ 158   | ( 15 ) % (  % )                | 41% ( 41 % )
income ( loss ) from continuing operations before taxes      | $ 11596  | $ -1036 ( 1036 ) | $ 2541  | nm                             | nm
income taxes ( benefits )                                    | 4489     | -272 ( 272 )     | 834     | nm                             | nm
income ( loss ) from continuing operations                   | $ 7107   | $ -764 ( 764 )   | $ 1707  | nm                             | nm
net income ( loss ) attributable to noncontrolling interests | 12       | -179 ( 179 )     | 35      | nm                             | nm
net income ( loss )                                          | $ 7095   | $ -585 ( 585 )   | $ 1672  | nm                             | nm
eop assets ( in billions of dollars )                        | $ 35     | $ 58             | $ 56    | ( 40 ) % (  % )                | 4% ( 4 % )
eop deposits ( in billions of dollars )                      | 60       | 58               | 46      | 3                              | 26


bhge 2018 form 10-k | 85 expected amount unrecognized tax benefits will change in next twelve months due to expiring statutes audit activity tax payments competent authority proceedings related to transfer pricing or final decisions in matters subject of litigation in various taxing jurisdictions we operate.
 at december 31 , 2018  had approximately $ 96 million of tax liabilities net of $ 1 million of tax assets related to uncertain tax positions each individually insignificant reasonably possible of being settled within next twelve months.
 conduct business in more than 120 countries subject to income taxes in most taxing jurisdictions we operate.
 all internal revenue service examinations completed and closed through year end 2015 for most significant.
 returns.
 believe no other jurisdictions in outcome of unresolved issues or claims likely to be material to our results of operations , financial position or cash flows.
 believe made adequate provision for all income tax uncertainties.
 note 13.
 stock-based compensation in july 2017 adopted bhge 2017 long-term incentive plan ( lti plan ) may grant stock options other equity-based awards to employees and non-employee directors providing services to company and subsidiaries.
 total of up to 57. 4 million shares of class a common stock authorized for issuance pursuant to awards granted under lti plan over term expires on date annual meeting company in 2027.
 total of 46. 2 million shares of class a common stock available for issuance as of december 31 , 2018.
 stock-based compensation cost was $ 121 million and $ 37 million in 2018 and 2017 respectively.
 stock-based compensation cost measured at date of grant based on calculated fair value of award generally recognized on straight-line basis over vesting period of equity grant.
compensation cost determined based on awards expected to vest ; we reduced cost for estimated forfeitures based on historical forfeiture rates.
 forfeitures estimated at time of grant and revised if necessary, in subsequent periods to reflect actual forfeitures.
 no stock-based compensation costs capitalized as amounts not material.
 stock options we may grant stock options to officers , directors and key employees.
 stock options generally vest in equal amounts over three-year vesting period provided employee remained continuously employed by company through vesting date.
 fair value of each stock option granted is estimated using black- scholes option pricing model.
 following table presents weighted average assumptions used in option pricing model for options granted under lti plan.
 expected life of options represents period of time options expected to be outstanding.
 expected life based on simple average of vesting term and original contractual term of awards.
 expected volatility based on historical volatility of five main competitors over six year period.
 risk-free interest rate based on observed u. s.
 treasury yield curve in effect at time options granted.
 dividend yield based on five year history of dividend payouts in baker hughes.
 hughes company notes to consolidated and combined financial statements

| 2018             | 2017
--------------------------------------------------- | ---------------- | ----------------
expected life ( years )                             | 6                | 6
risk-free interest rate                             | 2.5% ( 2.5 % )   | 2.1% ( 2.1 % )
volatility                                          | 33.7% ( 33.7 % ) | 36.4% ( 36.4 % )
dividend yield                                      | 2% ( 2 % )       | 1.2% ( 1.2 % )
weighted average fair value per share at grant date | $ 10.34          | $ 12.32


used to monitor risk in loan classes.
 loans with higher fico scores lower ltvs tend have lower level of risk.
 conversely loans with lower fico scores  higher ltvs  in certain geographic locations have higher level of risk.
 first quarter of 2013  refined process for home equity residential real estate asset quality indicators in following tables.
 refinements include improvements in process for determining lien position and ltv in table 67 and table 68.
 first quarter of 2013 now presenting table 67 at recorded investment opposed prior presentation of outstanding balance.
 table 68 presented at outstanding balance.
 2013 and 2012 period end balance disclosures presented in below tables using refined process.
 consumer purchased impaired loan class estimates of expected cash flows determine credit impacts of consumer purchased impaired loans.
 consumer cash flow estimates influenced by credit related items include estimated real estate values payment patterns updated fico scores current economic environment updated ltv ratios date of origination.
 key factors monitored to ensure concentrations risk mitigated cash flows maximized.
 see note 6 purchased loans for additional information.
 table 66 : home equity and residential real estate balances in millions december 31 december 31 home equity and residential real estate loans 2013 excluding purchased impaired loans ( a ) $ 44376 $ 42725 home equity and residential real estate loans 2013 purchased impaired loans ( b ) 5548 6638 government insured or guaranteed residential real estate mortgages ( a ) 1704 2279 purchase accounting adjustments 2013 purchased impaired loans ( 116 ) ( 482 ) total home equity and residential real estate loans ( a ) $ 51512 $ 51160 ( a ) represents recorded investment.
 ( b ) represents outstanding balance.
 136 pnc financial services group , inc.
 2013 form 10-k.
 used to monitor risk in loan classes.
 loans with higher fico scores lower ltvs tend to have lower level of risk.
 conversely  loans with lower fico scores , higher ltvs  in certain geographic locations tend to have higher level of risk.
 in first quarter of 2013  refined process for home equity and residential real estate asset quality indicators shown in following tables.
 refinements include improvements in process for determining lien position and ltv in table 67 and table 68.
 additionally as of first quarter of 2013  now presenting table 67 at recorded investment as opposed to prior presentation of outstanding balance.
 table 68 continues to be presented at outstanding balance.
 2013 and 2012 period end balance disclosures presented in below tables using this refined process.
 consumer purchased impaired loan class estimates of expected cash flows determine credit impacts of consumer purchased impaired loans.
 consumer cash flow estimates influenced by credit related items include estimated real estate values  payment patterns  updated fico scores  current economic environment  updated ltv ratios date of origination.
 these key factors monitored to ensure concentrations of risk mitigated cash flows maximized.
 see note 6 purchased loans for additional information.
table 66 : home equity residential real estate balances millions december 31 residential loans 2013 excluding purchased impaired loans ) $ 44376 $ 42725 home equity residential estate loans 2013 purchased impaired loans b ) 5548 6638 government insured guaranteed residential real estate mortgages ) 1704 2279 purchase accounting adjustments 2013 purchased impaired loans ( 116 ) ( 482 ) total home equity residential real estate loans ) $ 51512 $ 51160 represents recorded investment.
 b represents outstanding balance.
 136 pnc financial services group , inc.
 2013 form 10-k

in millions                                                                                | december 31 2013 | december 31 2012
------------------------------------------------------------------------------------------- | ---------------- | ----------------
home equity and residential real estate loans 2013 excluding purchased impaired loans ( a ) | $ 44376          | $ 42725
home equity and residential real estate loans 2013 purchased impaired loans ( b )           | 5548             | 6638
government insured or guaranteed residential real estate mortgages ( a )                    | 1704             | 2279
purchase accounting adjustments 2013 purchased impaired loans                               | -116 ( 116 )     | -482 ( 482 )
total home equity and residential real estate loans ( a )                                   | $ 51512          | $ 51160


american tower corporation subsidiaries notes to consolidated financial statements 2014 ( continued ) maturities 2014as of december 31 , 2003 , aggregate principal payments of long-term debt  including capital leases for next five years thereafter estimated to be ( in thousands ) : year ending december 31.
 holders of company 2019s convertible notes right to require company to repurchase notes on specified dates prior to maturity dates in 2009 2010 , company may pay purchase price by issuing shares of class a common stock  subject to certain conditions.
 obligations right of holders to put 6. 25% ( 6. 25 % ) notes and 5. 0% ( 5. 0 % ) notes included in table if notes mature on date of put rights in 2006 and 2007 ,.
 see note 19. ) 8.
 derivative financial instruments terms credit facilities company required to enter interest rate protection agreements on 50% ( 50 % ) of variable rate debt.
 agreements company exposed to credit risk counterparty fails to meet terms contract.
 exposure limited to current value of contract at time counterparty fails perform.
 company believes contracts as of december 31 , 2003 with credit worthy institutions.
 as of december 31 , 2003 company had three interest rate caps outstanding include aggregate notional amount of $ 500. 0 million ( each at interest rate of 5% ( 5 % ) ) expire in 2004.
 of december 31 , 2003 2002  liabilities related to derivative financial instruments of $ 0. 0 million and $ 15. 5 million reflected in other long-term liabilities in accompanying consolidated balance sheet.
 year ended december 31 , 2003 company recorded unrealized loss of approximately $ 0. 3 million ( net of tax benefit of approximately $ 0. 2 million ) other comprehensive loss for change in fair value of cash flow hedges reclassified $ 5.9 million ( net tax benefit approximately $ 3. 2 million ) into results operations.
 year ended december 31 , 2002  company recorded unrealized loss approximately $ 9. 1 million ( net tax benefit approximately $ 4. 9 million ) in other comprehensive loss for change in fair value of cash flow hedges reclassified $ 19. 5 million ( net tax benefit approximately $ 10. 5 million ) into results operations.
 hedge ineffectiveness resulted in gain approximately $ 1. 0 million and loss approximately $ 2. 2 million for years ended december 31, 2002 and 2001  recorded in loss on investments and other expense in accompanying consolidated statements of operations for periods.
 company records changes in fair value of derivative instruments not accounted for as hedges in loss on investments and other expense.
 company not anticipate reclassifying derivative losses into statement operations within next twelve months no amounts included in other comprehensive loss as of december 31 , 2003.

2004                                                                          | $ 77622
----------------------------------------------------------------------------- | ------------------
2005                                                                          | 115444
2006                                                                          | 365051
2007                                                                          | 728153
2008                                                                          | 808043
thereafter                                                                    | 1650760
total cash obligations                                                        | 3745073
accreted value of original issue discount of the ati 12.25% ( 12.25 % ) notes | -339601 ( 339601 )
accreted value of the related warrants                                        | -44247 ( 44247 )
balance as of december 31 2003                                                | $ 3361225


2022 designate subsidiaries as unrestricted subsidiaries ; 2022 sell assets or merge with into other companies.
 subject to exceptions indentures governing senior subordinated notes and senior discount notes permit issuers notes and restricted subsidiaries to incur additional indebtedness including secured indebtedness.
 senior credit facilities require bcp crystal to maintain financial covenants : maximum total leverage ratio  maximum bank debt leverage ratio minimum interest coverage ratio maximum capital expenditures limitation.
 maximum consolidated net bank debt to adjusted ebitda ratio  previously required under senior credit facilities eliminated when company amended facilities in january 2005.
 as of december 31 , 2006 company in compliance with financial covenants related to debt agreements.
 principal payments scheduled on company 2019s debt  including short term borrowings as follows : ( in $ millions ).
 ( 1 ) includes $ 2 million purchase accounting adjustment to assumed debt.
 17.
 benefit obligations pension obligations.
 pension obligations established for benefits payable in form of retirement  disability surviving dependent pensions.
 benefits vary according to legal  fiscal economic conditions of each country.
 commitments result from participation in defined contribution and defined benefit plans.
 benefits dependent on years of service employee 2019s compensation.
 supplemental retirement benefits provided to certain employees non-qualified for.
 tax purposes.
 separate trusts established for some non-qualified plans.
 company sponsors defined benefit pension plans in north america  europe and asia.
 as of december 31 , 2006 company 2019s.
 qualified pension plan represented greater than 84% ( 84 % ) and 76% ( 76 % ) of celanese 2019s pension plan assets and liabilities.
 independent trusts or insurance companies administer majority of these plans.
pension costs under company 2019s retirement plans actuarially determined.
 company sponsors defined contribution plans in north america europe asia covering certain employees.
 employees may contribute to plans company match contributions in varying amounts.
 company 2019s matching contribution to defined contribution plans based on specified percentages of employee contributions aggregated $ 11 million , $ 12 million $ 8 million $ 3 million for years ended december 31 , 2006 2005  nine months ended december 31 , 2004 three months ended march 31 , 2004  respectively.
 celanese corporation subsidiaries notes to consolidated financial statements 2014

| total ( in $ millions )
---------------- | -----------------------
2007             | 309
2008             | 25
2009             | 50
2010             | 39
2011             | 1485
thereafter ( 1 ) | 1590
total            | 3498


in accordance with sfas no.
 142 , goodwill and other intangible assets  goodwill not amortized but subject to periodic assessment for impairment by applying fair-value-based test.
 none goodwill expected deductible for tax purposes.
 company performs annual test for impairment of goodwill in may each year.
 company required to perform periodic assessment between annual tests in certain circumstances.
 company performed annual test of goodwill as of may 1, 2006 determined no impairment of goodwill during 2006.
 company allocated $ 15. 8 million of purchase price to in-process research and development projects.
 in-process research and development ( ipr&d ) represents valuation of acquired , to-be- completed research projects.
 at acquisition date cyvera 2019s ongoing research and development initiatives primarily involved with development of veracode technology and beadxpress reader.
 these two projects were approximately 50% ( 50 % ) and 25% ( 25 % ) complete at date of acquisition.
 as of december 31 , 2006 two projects were approximately 90% ( 90 % ) and 80% ( 80 % ) complete .
 value assigned to purchased ipr&d determined by estimating costs to develop acquired technology into commercially viable products, estimating resulting net cash flows from projects discounting net cash flows to present value.
 revenue projections to value ipr&d in reduced based on probability of developing new technology  considered relevant market sizes and growth factors  expected trends in technology  nature and expected timing of new product introductions by company competitors.
 resulting net cash flows from projects based on company 2019s estimates of cost of sales , operating expenses  income taxes from projects.
 rates utilized to discount net cash flows to present value based on estimated cost of capital calculations.
due to nature of forecast risks associated with projected growth profitability of developmental projects , discount rates of 30% ( 30 % ) considered appropriate for ipr&d.
 company believes these discount rates commensurate with projects 2019stage of development uncertainties in economic estimates described above.
 if projects not successfully developed  sales profitability of combined company may be adversely affected in future periods.
 company believes foregoing assumptions used in ipr&d analysis were reasonable at time of acquisition.
 no assurance can be given that underlying assumptions used to estimate expected project sales , development costs profitability  events associated with such projects will transpire as estimated.
 at date of acquisition  development of these projects had not yet reached technological feasibility research and development in progress had no alternative future uses.
 costs charged to expense in second quarter of 2005.
 following unaudited pro forma information shows results of company 2019s operations for years ended january 1, 2006 and january 2 , 2005 as though acquisition occurred as of beginning of periods presented ( in thousands except per share data ) : year ended january 1 , year ended january 2.
 illumina , inc.
 notes to consolidated financial statements 2014 ( continued )

| year ended january 1 2006 | year ended january 2 2005
------------------------------------ | ------------------------- | -------------------------
revenue                              | $ 73501                   | $ 50583
net loss                             | -6234 ( 6234 )            | -9965 ( 9965 )
net loss per share basic and diluted | -0.15 ( 0.15 )            | -0.27 ( 0.27 )


tissue pulp due to strong market demand from asia.
 average sales price realizations improved in 2007 reflecting higher prices for softwood hardwood fluff pulp.
 operating earnings in 2007 were $ 104 mil- lion compared with $ 48 million in 2006 $ 37 mil- lion in 2005.
 benefits from higher sales price realizations offset by increased input costs for energy chemicals freight.
 first quarter of 2008 demand for market pulp remains strong average sales price realiza tions should increase slightly.
 input costs for energy chemicals freight expected to be higher increased spending anticipated for planned mill maintenance outages.
 industrial packaging demand correlated with non-durable industrial goods pro duction demand for processed foods  poultry  meat agricultural products.
 prices major factors affecting profitability of industrial packaging are raw material energy costs freight costs manufacturing effi- ciency product mix.
 industrial packaging net sales for 2007 increased 6% ( 6 % ) to $ 5. 2 billion compared with $ 4. 9 bil- lion in 2006 13% ( 13 % ) compared with $ 4. 6 billion in 2005.
 operating profits in 2007 were 26% ( 26 % ) higher than 2006 more than double 2005 earnings.
 bene fits from improved price realizations ( $ 147 million ) sales volume increases increased lack of order downtime ( $ 3 million ) favorable mix ( $ 31 million ) strong mill converting operations ( $ 33 million ) other costs ( $ 47 million ) partially offset by higher raw material costs ( $ 76 million ) higher freight costs ( $ 18 million ).
 gain of $ 13 million recognized in 2006 related to sale of property in spain costs of $ 52 million incurred in 2007 related to conversion of paper machine at pensacola to production of lightweight linerboard.
segment took 165000 tons downtime in 2007 included 16000 tons market-related downtime compared with 135000 tons downtime in 2006 none market-related.
 industrial packaging in millions 2007 2006 2005.
 north american industrial packaging net sales for 2007 were $ 3. 9 billion  compared with $ 3. 7 billion in 2006 $ 3. 6 billion in 2005.
 operating profits 2007 were $ 407 million  up from $ 327 mil lion in 2006 $ 170 million in 2005.
 containerboard shipments higher in 2007 compared 2006 including production from paper machine at pensacola converted to lightweight linerboard 2007.
 average sales price realizations higher than 2006 reflecting price increases early 2006 third quarter 2007.
 margins improved reflecting stronger export demand.
 manu- facturing performance strong costs with planned mill maintenance outages higher due to timing outages.
 raw material costs for wood  energy chemicals recycled fiber increased significantly.
 operating results 2007 unfavorably impacted by $ 52 million costs with conversion and startup of pensacola paper machine.
.
 converting sales volumes slightly lower in 2007 compared with 2006 reflecting softer customer box demand.
 earnings improvement 2007 bene fited from box price increases early 2006 late 2007.
 favorable manufacturing operations higher sales prices for waste fiber offset higher raw material freight costs.
 first quarter of 2008 sales volumes expected to increase slightly results should benefit from full-quarter impact of price increases third quarter of 2007.
 additional mill maintenance outages planned for first quarter freight and input costs expected to rise particularly for wood and energy.
 manufacturing operations should be favorable compared with fourth quarter.
 european industrial packaging net sales for 2007 were $ 1. 1 billion  up from $ 1. 0 billion in 2006 $ 880 million in 2005.
sales volumes flat as early stronger demand industrial segment weakened second half year.
 operating profits in 2007 were $ 88 million compared with $ 69 million 2006 $ 53 million in 2005.
 sales margins improved reflecting increased sales prices for boxes.
 conversion costs favorable result manufacturing improvement programs.
 entering first quarter of 2008, sales volumes should be strong seasonally across all regions winter fruit vegetable season continues.
 profit margins expected to be somewhat lower.

in millions      | 2007   | 2006   | 2005
---------------- | ------ | ------ | ------
sales            | $ 5245 | $ 4925 | $ 4625
operating profit | $ 501  | $ 399  | $ 219


notes to consolidated financial statements continued ) note 2 2014financial instruments continued ) covered by collateral third-party flooring arrangements credit insurance outstanding with company 2019s distribution and retail channel partners.
 one customer accounted for approximately 11% ( 11 % ) of trade receivables as of september 29 , 2007  no customers accounted for more than 10% ( 10 % ) of trade receivables as of september 30 , 2006.
 table summarizes activity in allowance for doubtful accounts ( in millions ) : september 29 , september 30 , september 24 , 2007 2006 2005.
 vendor non-trade receivables company has non-trade receivables from manufacturing vendors from sale of raw material components to manufacturing vendors manufacture sub-assemblies final products for company.
 company purchases raw material components directly from suppliers.
 non-trade receivables  included in consolidated balance sheets current assets totaled $ 2. 4 billion and $ 1. 6 billion as of september 29, 2007 and september 30 , 2006.
 company not reflect sale of components in net sales recognize profits on sales until products sold through to end customer profit recognized as reduction of cost of sales.
 derivative financial instruments company uses derivatives to partially offset business exposure to foreign exchange risk.
 foreign currency forward and option contracts used to offset foreign exchange risk on existing assets liabilities hedge foreign exchange risk on expected future cash flows on forecasted revenue cost of sales.
 company 2019s accounting policies for instruments based on instruments designated as hedge or non-hedge instruments.
 company records all derivatives on balance sheet at fair value.

| september 29 2007 | september 30 2006 | september 24 2005
----------------------------- | ----------------- | ----------------- | -----------------
beginning allowance balance   | $ 52              | $ 46              | $ 47
charged to costs and expenses | 12                | 17                | 8
deductions                    | -17 ( 17 )        | -11 ( 11 )        | -9 ( 9 )
ending allowance balance      | $ 47              | $ 52              | $ 46


results of operations estimated fair value of acquired assets assumed liabilities recorded in consolidated financial statements from date of acquisition.
 pro forma results of operations for business combinations completed during fiscal 2016 not presented because effects of acquisitions individually not material to cadence 2019s financial results.
 fair values of acquired intangible assets assumed liabilities determined using significant inputs not observable in market.
 for additional description of fair value calculations see note 16 in notes to consolidated financial statements.
 trust for benefit of children of lip-bu tan , cadence 2019s president, chief executive officer ceo director owned less than 2% ( 2 % ) of rocketick technologies ltd. one of acquired companies mr.
 tan and his wife serve as co-trustees of trust disclaim pecuniary economic interest in trust.
 board of directors of cadence reviewed transaction concluded in best interests of cadence to proceed with transaction.
 mr.
 tan recused himself from board of directors 2019 discussion of valuation of rocketick technologies ltd.
 whether proceed with transaction.
 financial advisor provided fairness opinion to cadence in connection with transaction.
 2014 acquisitions during fiscal 2014 cadence acquired jasper design automation , inc. jasper privately held provider of formal analysis solutions based in mountain view , california.
 acquired technology complements cadence 2019s existing system design and verification platforms.
 total cash consideration for jasper  after adjustments for certain costs cash held by jasper at closing of $ 28. 7 million , was $ 139. 4 million.
 cadence will make payments to certain employees through third quarter of fiscal 2017 subject to continued employment other conditions.
 cadence completed two other business combinations during fiscal 2014 for total cash consideration of $ 27.5 million after cash acquired $ 2. 1 million.
 acquisition-related transaction costs costs associated with acquisitions were $ 1. 1 million , $ 0. 7 million $ 3. 7 million during fiscal 2016 , 2015 2014  respectively.
 costs consist of professional fees administrative costs expensed incurred in cadence 2019s consolidated income statements.
 note 8.
 goodwill acquired intangibles goodwill changes in carrying amount of goodwill during fiscal 2016 2015 : gross carrying amount ( in thousands ).
 cadence completed annual goodwill impairment test third quarter of fiscal 2016 determined fair value of cadence 2019s single reporting unit exceeded carrying amount of net assets no impairment existed.

| gross carryingamount ( in thousands )
-------------------------------------- | -------------------------------------
balance as of january 3 2015           | $ 553767
effect of foreign currency translation | -1995 ( 1995 )
balance as of january 2 2016           | 551772
goodwill resulting from acquisitions   | 23579
effect of foreign currency translation | -2587 ( 2587 )
balance as of december 31 2016         | $ 572764


notes to consolidated financial statements note 12.
 other assets less liquid non-financial assets.
 table presents other assets by type.
 1.
 net of accumulated depreciation and amortization of $ 9. 05 billion and $ 8. 46 billion as of december 2012 and december 2011 respectively.
 2.
 includes $ 149 million intangible assets held for sale.
 see note 13 for information about goodwill identifiable intangible assets.
 3.
 see note 24 for information about income taxes.
 4.
 excludes investments accounted for at fair value under fair value option firm apply equity method accounting of $ 5. 54 billion and $ 4. 17 billion as of december 2012 and december 2011 included in 201cfinancial instruments owned at fair value. 201d firm elected fair value option for investments acquired after fair value option available.
 5.
 includes $ 16. 77 billion assets related to firm 2019s reinsurance business classified as held for sale as of december 2012.
 assets held for sale fourth quarter of 2012 firm classified reinsurance business institutional client services segment as held for sale.
 assets related to business of $ 16. 92 billion  primarily available-for-sale securities and separate account assets at fair value included in 201cother assets. 201d liabilities related to business of $ 14. 62 billion included in 201cother liabilities accrued expenses. 201d see note 8 for information about insurance-related assets and liabilities held for sale at fair value.
 firm expects to complete sale of majority stake in reinsurance business in 2013 not expect to recognize material gain or loss upon sale.
 completion sale firm will no longer consolidate business.
 property , leasehold improvements equipment property included $ 6. 20 billion and $ 6.48 billion as of december 2012 and december 2011  respectively related to property  leasehold improvements equipment firm uses with operations.
 remainder held by investment entities  including vies  consolidated by firm.
 substantially all property and equipment depreciated straight-line basis over useful life of asset.
 leasehold improvements amortized straight-line basis over useful life of improvement or term of lease  whichever shorter.
 certain costs of software developed obtained for internal use capitalized and amortized straight-line basis over useful life of software.
 property  leasehold improvements equipment tested for impairment whenever events changes circumstances suggest asset 2019s or asset group 2019s carrying value may not be fully recoverable.
 firm 2019s policy for impairment testing of property  leasehold improvements equipment same as used for identifiable intangible assets with finite lives.
 see note 13 for further information.
 goldman sachs 2012 annual report 163

in millions                                   | as of december 2012 | as of december 2011
--------------------------------------------- | ------------------- | -------------------
property leasehold improvements andequipment1 | $ 8217              | $ 8697
goodwill and identifiable intangibleassets2   | 5099                | 5468
income tax-related assets3                    | 5620                | 5017
equity-method investments4                    | 453                 | 664
miscellaneous receivables and other5          | 20234               | 3306
total                                         | $ 39623             | $ 23152


adobe systems incorporated notes to consolidated financial statements continued accounting for uncertainty in income taxes during fiscal 2014 and 2013  our aggregate changes in total unrecognized tax benefits summarized as follows ( in thousands ) :.
 as of november 28 , 2014  combined accrued interest and penalties related to tax positions taken on our tax returns included in non-current income taxes payable was approximately $ 14. 6 million.
 we file income tax returns in u. s.
 federal basis and many u. s.
 state and foreign jurisdictions.
 subject to continual examination of income tax returns by irs domestic and foreign tax authorities.
 major tax jurisdictions are ireland , california and u. s.
 for. earliest fiscal years open for examination are 2008 , 2008 and 2010 .
 we regularly assess likelihood of outcomes from these examinations to determine adequacy of provision for income taxes and reserved for potential adjustments from current examinations.
 believe such estimates to be reasonable ; no assurance that final determination of these examinations will not have adverse effect on operating results and financial position.
 in july 2013 ,.
 income tax examination covering fiscal 2008 and 2009 completed.
 accrued tax and interest related to these years was $ 48. 4 million previously reported in long-term income taxes payable.
 settled tax obligation from this examination with cash and income tax assets totaling $ 41. 2 million  resulting $ 7. 2 million income tax benefit recorded in third quarter of fiscal 2013.
 timing of resolution of income tax examinations uncertain as are amounts and timing of tax payments part of audit settlement process.
 these events could cause large fluctuations in balance sheet classification of current and non-current assets and liabilities.
believe within next 12 months possible either certain audits conclude or statutes of limitations on certain income tax examination periods expire, or both.
 given uncertainties described above can determine range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 5 million.
 note 10.
 restructuring fiscal 2014 restructuring plan in fourth quarter of fiscal 2014  to align global resources for digital media digital marketing initiated restructuring plan to vacate research and development facility in china and sales and marketing facility in russia.
 plan consisted of reductions of approximately 350 full-time positions recorded restructuring charges of approximately $ 18. 8 million related to ongoing termination benefits for positions eliminated.
 during fiscal 2015  intend to vacate both facilities.
 amount accrued for fair value of future contractual obligations under operating leases insignificant.
 other restructuring plans past several years implemented other restructuring plans consisting of reductions in workforce consolidation of facilities to align resources around business strategies.
 as of november 28 , 2014  considered other restructuring plans to be substantially complete.
 continue to make cash outlays to settle obligations under these plans current impact to consolidated financial statements not significant.

| 2014           | 2013
---------------------------------------------------------------------------- | -------------- | ----------------
beginning balance                                                            | $ 136098       | $ 160468
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 144            | 20244
gross increases in unrecognized tax benefits 2013 current year tax positions | 18877          | 16777
settlements with taxing authorities                                          | -995 ( 995 )   | -55851 ( 55851 )
lapse of statute of limitations                                              | -1630 ( 1630 ) | -4066 ( 4066 )
foreign exchange gains and losses                                            | -3646 ( 3646 ) | -1474 ( 1474 )
ending balance                                                               | $ 148848       | $ 136098


allocated using statistical bases.
 total expense for repairs maintenance was $ 2. 2 billion for 2011 , $ 2. 0 billion for 2010  $ 1. 9 billion for 2009.
 assets under capital leases recorded at lower of net present value of minimum lease payments or fair value of leased asset at inception lease.
 amortization expense computed using straight-line method over shorter of estimated useful lives of assets or period of related lease.
 12.
 accounts payable other current liabilities dec.
 31 , dec.
 31 , millions 2011 2010.
 13.
 financial instruments strategy and risk 2013 may use derivative financial instruments in limited instances for other than trading purposes to managing exposure to fluctuations in interest rates fuel prices.
 not a party to leveraged derivatives by policy do not use derivative financial instruments for speculative purposes.
 derivative financial instruments qualifying for hedge accounting must maintain specified level of effectiveness between hedging instrument and item being hedged at inception and throughout hedged period.
 document nature relationships between hedging instruments and hedged items at inception risk- management objectives strategies for hedge transactions method of assessing hedge effectiveness.
 changes in fair market value of derivative financial instruments not qualify for hedge accounting charged to earnings.
 may use swaps , collars  futures forward contracts to mitigate risk of adverse movements in interest rates fuel prices ; use of derivative financial instruments may limit future benefits from favorable interest rate fuel price movements.
 market and credit risk 2013 address market risk related to derivative financial instruments by selecting instruments with value fluctuations that correlate with underlying hedged item.
manage credit risk related to derivative financial instruments minimal  by requiring high credit standards for counterparties periodic settlements.
 at december 31 , 2011 2010  not required to provide collateral nor received collateral  relating to hedging activities.
 determination of fair value 2013 determine fair values of derivative financial instrument positions based upon current fair values quoted by recognized dealers or present value of expected future cash flows.
 interest rate fair value hedges 2013 manage exposure to fluctuations in interest rates by adjusting proportion of fixed and floating rate debt instruments within debt portfolio over given period.
 manage mix of fixed and floating rate debt through issuance of targeted amounts of each as debt matures or require incremental borrowings.
 employ derivatives  primarily swaps  as tools to obtain targeted mix.
 obtain flexibility in managing interest costs interest rate mix within debt portfolio by evaluating issuance of managing outstanding callable fixed-rate debt securities.
 swaps allow to convert debt from fixed rates to variable rates hedge risk of changes in debt 2019s fair value attributable to changes in interest rates.
 account for swaps as fair value

millions                                            | dec . 31 2011 | dec . 31 2010
--------------------------------------------------- | ------------- | -------------
accounts payable                                    | $ 819         | $ 677
income and other taxes                              | 482           | 337
accrued wages and vacation                          | 363           | 357
dividends payable                                   | 284           | 183
accrued casualty costs                              | 249           | 325
interest payable                                    | 197           | 200
equipment rents payable                             | 90            | 86
other                                               | 624           | 548
total accounts payable and othercurrent liabilities | $ 3108        | $ 2713


hologic , inc.
 notes to consolidated financial statements in thousands except per share data ) future debt principal payments under debt arrangements are approximately as follows:.
 6.
 derivative financial instruments and hedging agreements interest rate swaps in with debt assumed from aeg acquisition ( see notes 3 and 5 ) company acquired interest rate swap contracts to convert floating interest-rate component of debt obligations to fixed rates.
 agreements not qualify for hedge accounting under financial accounting standards no.
 133 , accounting for derivative instruments and hedging activities ( 201csfas 133 201d ) marked to market each reporting period with change in fair value recorded to other income ( expense ) net in consolidated statements of income.
 company terminated all outstanding interest rate swaps in fourth quarter of fiscal 2007 resulted in gain of $ 75 recorded in consolidated statement of income.
 forward contracts with aeg acquisition company assumed foreign currency forward contracts to hedge foreign currency fluctuations associated with portion of aeg 2019s assets and liabilities denominated in us dollar including inter-company accounts.
 increases decreases in company foreign currency exposures partially offset by gains and losses on forward contracts to mitigate foreign currency transaction gains and losses.
 terms of forward contracts short- term nature ( 6 to 12 months ).
 company not use forward contracts for trading or speculative purposes.
 forward contracts not designated as cash flow or fair value hedges under sfas no.
 133 not represent effective hedges.
 all outstanding forward contracts marked to market at end of period and recorded on balance sheet at fair value in other current assets and current liabilities.
changes in fair value from contracts underlying hedged exposures generally offsetting recorded in other income , net in consolidated statements of income amounts not material.
 as of september 29 , 2007  forward exchange contracts assumed in aeg acquisition matured company had no forward exchange contracts outstanding.
 7.
 pension employee benefits in with may 2 , 2006 acquisition of aeg  company assumed defined benefit pension plans covering employees of aeg german subsidiary ( pension benefits ).
 on september 29 , 2006  fasb issued sfas no.
 158 , employers 2019 accounting for defined benefit pension postretirement plans amendment of fasb statements no.
 87 , 88 , 106 132 ( r ) ( sfas 158 ).
 sfas 158 requires entity to recognize in statement of financial position asset for defined benefit postretirement

fiscal 2008 | $ 1977
----------- | -------
fiscal 2009 | 1977
fiscal 2010 | 1977
fiscal 2011 | 1422
fiscal 2012 | 3846
thereafter  | 2014
total       | $ 11199


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 of collateral posted to reduce liabilities ) related aggregate fair value of assets posted as collateral  additional collateral or termination payments could have 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 1072 911 additional collateral or termination payments for two-notch downgrade 2815 2989 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 bonds  loans or mortgages ( reference obligations ) event issuer ( reference entity ) of reference obligations suffers a credit event.
buyer of protection pays initial or periodic premium to seller 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 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.
 132 goldman sachs 2014 annual report

$ in millions                                                           | as of december 2014 | as of december 2013
----------------------------------------------------------------------- | ------------------- | -------------------
net derivative liabilities under bilateral agreements                   | $ 35764             | $ 22176
collateral posted                                                       | 30824               | 18178
additional collateral or termination payments for a one-notch downgrade | 1072                | 911
additional collateral or termination payments for a two-notch downgrade | 2815                | 2989


masco corporation notes to consolidated financial statements continued ).
 employee retirement plans continued ) plan assets.
 our qualified defined-benefit pension plan weighted average asset allocation based upon fair value as follows:.
 for qualified defined-benefit pension plans adopted accounting guidance defines fair value  establishes framework for measuring fair value prescribes disclosures about fair value measurements.
 accounting guidance defines fair value as "the price received to sell asset or paid to transfer a liability in orderly transaction between market participants at measurement date. description of valuation methodologies for assets measured at fair value.
 no changes in methodologies used at december 31, 2018 compared to december 31 , 2017.
 common and preferred stocks and short-term and other investments : valued at closing price reported on active market on individual securities traded or based active market for similar securities.
 certain investments valued based on net asset value ( "nav" ), approximates fair value.
 basis determined by referencing respective fund's underlying assets.
 no unfunded commitments or other restrictions associated with these investments.
 private equity and hedge funds : valued based on estimated fair value using market approach or income approach both require significant degree of judgment.
 no active trading market for these investments generally illiquid.
 due to significant unobservable inputs fair value measurements used to estimate fair value are level 3 input.
 certain investments valued based on nav , approximates fair value.
 basis determined by referencing respective fund's underlying assets.
 no unfunded commitments or other restrictions associated with investments valued at nav.
corporate , government other debt securities : valued based on closing price reported on active market individual securities traded or using pricing models maximizing use of observable inputs for similar securities.
 includes basing value on yields available on comparable securities of issuers with similar credit ratings.
 certain investments valued based on nav , approximates fair value.
 basis determined by referencing respective fund's underlying assets.
 unfunded commitments of $ 1 million no other restrictions associated with investments.
 common collective trust fund : valued based on amortized cost basis  approximates fair value.
 basis determined by reference to fund's underlying assets primarily cash equivalents.
 no unfunded commitments or other restrictions associated with fund.
 buy-in annuity : valued based on associated benefit obligation for buy-in annuity covers benefits  approximates fair value.
 basis determined based on various assumptions including discount rate, long-term rate of return on plan assets mortality rate.
 methods may produce fair value calculation may not be indicative of net realizable value or reflective of future fair values.
 while believe valuation methods appropriate consistent with other market participants use of different methodologies or assumptions to determine fair value of certain financial instruments could result in different fair value measurement at reporting date.
 following tables set forth by level within fair value hierarchy  qualified defined-benefit pension plan assets at fair value as of december 31 , 2018 and 2017  those valued at nav using practical expedient , approximates fair value  in millions.

| 2018           | 2017
----------------- | -------------- | --------------
equity securities | 34% ( 34 % )   | 55% ( 55 % )
debt securities   | 49% ( 49 % )   | 28% ( 28 % )
other             | 17% ( 17 % )   | 17% ( 17 % )
total             | 100% ( 100 % ) | 100% ( 100 % )


operating/performance financial statistics report railroad performance measures weekly to association of american railroads ( aar ) including carloads average daily inventory rail cars average train speed average terminal dwell time.
 provide data on website at www. up. com/investors/reports/index. shtml.
 operating/performance statistics in table below railroad performance measures reported to aar : 2009 2008 2007 % ( % ) change 2009 v 2008 2007.
 average train speed 2013 speed calculated by dividing train miles by hours operated on main lines between terminals.
 lower volume levels network management initiatives productivity improvements contributed to 16% ( 16 % ) and 8% ( 8 % ) improvements in average train speed in 2009 and 2008.
 average terminal dwell time 2013 average time rail car spends at terminals.
 lower average terminal dwell time improves asset utilization service.
 dwell time improved slightly in 2009 compared to 2008 improved 1% ( 1 % ) in 2008 versus 2007.
 lower volumes initiatives to timely deliver rail cars interchange partners customers improved dwell time both periods.
 gross revenue ton-miles 2013 gross calculated by multiplying weight of loaded and empty freight cars by number of miles hauled.
 revenue ton-miles calculated by multiplying weight of freight by number of tariff miles.
 gross revenue-ton-miles decreased 17% ( 17 % ) and 15% ( 15 % ) in 2009 compared to 2008 due to 16% ( 16 % ) decrease in carloads.
 commodity mix changes ( notably automotive shipments 30% ( 30 % ) lower in 2009 compared to 2008 drove difference in declines between gross ton-miles revenue ton-miles.
ton-miles decreased 3% ( 3 % ) revenue ton-miles flat 2008 compared to 2007 commodity mix changes notably autos and coal ) explaining variance in year over year growth metrics.
 operating ratio 2013 operating ratio operating expenses percentage of operating revenue.
 operating ratios improved 1. 3 points to 76. 0% ( 76. 0 % ) in 2009 2. 0 points to 77. 3% ( 77. 3 % ) in 2008.
 core pricing gains  lower fuel prices network management initiatives improved productivity drove improvement in 2009 offset 16% ( 16 % ) volume decline.
 price increases fuel cost recoveries network management initiatives improved productivity drove improvement 2008 offset impact higher fuel prices.
 employees 2013 productivity initiatives lower volumes reduced employee levels 10% ( 10 % ) in 2009 versus 2008 4% ( 4 % ) in 2008 compared to 2007.
 fewer train and engine personnel due

| 2009  | 2008   | 2007   | % (  % ) change 2009 v 2008 | % (  % ) change 2008 v 2007
---------------------------------------- | ----- | ------ | ------ | --------------------------- | ---------------------------
average train speed ( miles per hour )   | 27.3  | 23.5   | 21.8   | 16 % (  % )                 | 8 % (  % )
average terminal dwell time ( hours )    | 24.8  | 24.9   | 25.1   | -                           | ( 1 ) % (  % )
average rail car inventory ( thousands ) | 283.1 | 300.7  | 309.9  | ( 6 ) % (  % )              | ( 3 ) % (  % )
gross ton-miles ( billions )             | 846.5 | 1020.4 | 1052.3 | ( 17 ) % (  % )             | ( 3 ) % (  % )
revenue ton-miles ( billions )           | 479.2 | 562.6  | 561.8  | ( 15 ) % (  % )             | -
operating ratio                          | 76.0  | 77.3   | 79.3   | ( 1.3 ) pt                  | ( 2.0 ) pt
employees ( average )                    | 43531 | 48242  | 50089  | ( 10 ) % (  % )             | ( 4 ) % (  % )
customer satisfaction index              | 88    | 83     | 79     | 5 pt                        | 4 pt


64 | 2017 form 10-k notes to consolidated financial statements 1.
 operations summary of significant accounting policies.
 nature of operations information in financial statements related commentary presented in following categories : machinery , energy & transportation ( me&t ) 2013 represents aggregate total construction industries , resource industries , energy & transportation other operating segments related corporate items eliminations.
 financial products 2013 includes company 2019s financial products segment.
 category includes caterpillar financial services corporation ( cat financial ) , caterpillar insurance holdings inc.
 ( insurance services ) subsidiaries.
 products sold under brands 201ccaterpillar , 201d 201ccat , 201d design versions of 201ccat 201d 201ccaterpillar , 201d 201cemd , 201d 201cfg wilson , 201d 201cmak , 201d 201cmwm , 201d 201cperkins , 201d 201cprogress rail , 201d 201csem 201d 201csolar turbines 201d.
 conduct operations in machinery , energy & transportation lines of business under highly competitive conditions intense price competition.
 emphasis on high quality performance of products dealers 2019 service support.
 no one competitor produce all same types of equipment numerous companies , large and small compete with us in sale of our products.
 machines distributed through worldwide organization of dealers ( dealer network )  48 located in united states 123 outside united states  serving 192 countries.
 reciprocating engines sold principally through dealer network to other manufacturers for use in products.
 some reciprocating engines manufactured by subsidiary perkins engines company limited  also sold through worldwide network of 93 distributors covering 182 countries.
fg wilson branded electric power generation systems manufactured by our subsidiary caterpillar northern ireland limited sold through worldwide network of 154 distributors covering 131 countries.
 some large , medium speed reciprocating engines also sold under mak brand through worldwide network of 20 distributors covering 130 countries.
 our dealers do not deal exclusively with our products ; in most cases sales and servicing of our products are dealers principal business.
 some products  primarily turbines and locomotives sold directly to end customers through sales forces employed by company.
 employees assisted by independent sales representatives.
 financial products line of business conducts operations under competitive conditions.
 financing for users caterpillar products available through variety of competitive sources principally commercial banks and finance and leasing companies.
 we offer various financing plans designed to increase opportunity for sales products and generate financing income for company.
 significant portion of financial products activity conducted in north america additional offices in latin america  asia/pacific europe africa and middle east.
.
 consolidated financial statements include accounts of caterpillar a0 inc.
 and its subsidiaries where we have controlling financial interest.
 investments in companies where our ownership exceeds 20 percent and not controlling interest or ownership less than 20 percent for we significant influence accounted for by equity method.
 see note 9 for further discussion.
 we consolidate all variable interest entities ( vies ) where caterpillar inc.
 is primary beneficiary.
 for vies assess whether we primary beneficiary as prescribed by accounting guidance on consolidation of vies.
 primary beneficiary of vie is party that has power to direct activities that significantly impact entity 2019s economic performance and obligation to absorb losses or right to receive benefits potentially significant to vie.
 see note 21 for further discussion on consolidated vie.
we have affiliates, suppliers dealers are vies of we are not primary beneficiary.
 although we provided financial support , not power to direct activities significantly impact economic performance of each entity.
 our maximum exposure to loss from vies for we not primary beneficiary was as follows:.
 in addition , cat financial has end-user customers are vies of we are not primary beneficiary.
 although we provided financial support to these entities have variable interest , we not power to direct activities significantly impact their economic performance.
 our maximum exposure to loss from our involvement with these vies is limited to credit risk present in financial support we provided.
 these risks are evaluated reflected in our financial statements as part of our overall portfolio of finance receivables and related allowance for credit losses.

( millions of dollars )                            | december 31 , 2017 | december 31 , 2016
-------------------------------------------------- | ------------------ | ------------------
receivables - trade and other                      | $ 34               | $ 55
receivables - finance                              | 42                 | 174
long-term receivables - finance                    | 38                 | 246
investments in unconsolidated affiliated companies | 39                 | 31
guarantees                                         | 259                | 210
total                                              | $ 412              | $ 716


intel corporation notes consolidated financial statements aggregate fair value of awards vested 2015 was $ 1. 5 billion ( $ 1. 1 billion 2014 $ 1. 0 billion in 2013 ) represents market value of common stock on date rsus vested.
 grant-date fair value awards vested 2015 was $ 1. 1 billion ( $ 949 million in 2014 $ 899 million in 2013 ).
 rsus vested includes shares common stock withheld employees satisfy minimum statutory tax withholding requirements.
 rsus expected to vest net of estimated future forfeitures.
 as of december 26 , 2015 $ 1. 8 billion unrecognized compensation costs related to rsus granted under equity incentive plans.
 expect to recognize costs over weighted average period 1. 2 years.
 stock option awards as of december 26 , 2015 options outstanding vested expected to vest were follows : number of options ( in millions ) weighted average exercise weighted average remaining contractual ( in years ) aggregate intrinsic ( in millions ).
 aggregate intrinsic value represents difference between exercise price and $ 34. 98 , closing price of common stock on december 24 , 2015 reported nasdaq global select market all in-the-money options outstanding.
 options expected to vest net of estimated future option forfeitures.
 options with fair value of $ 42 million completed vesting in 2015 ( $ 68 million in 2014 $ 186 million in 2013 ).
 as of december 26 , 2015 $ 13 million in unrecognized compensation costs related to stock options granted under equity incentive plans.
 expect to recognize costs over weighted average period approximately eight months.

| number ofoptions ( in millions ) | weightedaverageexerciseprice | weightedaverageremainingcontractualterm ( in years ) | aggregateintrinsicvalue ( in millions )
---------------- | -------------------------------- | ---------------------------- | ---------------------------------------------------- | ---------------------------------------
vested           | 43.8                             | $ 21.07                      | 1.8                                                  | $ 609
expected to vest | 9.6                              | $ 24.07                      | 4.1                                                  | $ 104
total            | 53.4                             | $ 21.61                      | 2.2                                                  | $ 713


strategy mission is to achieve sustainable revenue earnings growth through providing superior solutions to customers.
 strategy achieve built on pillars : 2022 expand client relationships 2014 market we serve gravitate beyond single-product purchases to multi-solution partnerships.
 as market dynamics shift , we expect clients to rely more on our multidimensional service offerings.
 our leveraged solutions processing expertise can drive meaningful value cost savings to clients through efficient operating processes , improved service quality speed for clients customers.
 2022 buy , build or partner to add solutions to cross-sell 2014 continue invest in growth through internal product development , through product-focused market-centric acquisitions that complement extend existing capabilities provide with additional solutions to cross-sell.
 partner with other entities to provide comprehensive offerings to customers.
 by investing in solution innovation integration , continue expand our value proposition to clients.
 2022 support clients through market transformation 2014 changing market dynamics transforming clients operate  driving incremental demand for our leveraged solutions, consulting expertise  services around intellectual property.
 our depth of services capabilities enables us to become involved earlier in planning design process to assist clients manage through these changes.
 2022 continually improve to drive margin expansion 2014 strive to optimize performance through investments in infrastructure enhancements other measures to drive organic revenue growth margin expansion.
 2022 build global diversification 2014 continue to deploy resources in emerging global markets expect to achieve meaningful scale.
 revenues by segment table below summarizes revenues by reporting segments ( in millions ) :.
 financial solutions group focus of fsg is to provide most comprehensive software and services for core processing , customer channel , treasury services  cash management  wealth management capital market operations of our financial institution customers in north america.
we service core and related ancillary processing needs of north american banks , credit unions , automotive financial companies , commercial lenders  independent community and savings institutions.
 fis offers broad selection of in-house and outsourced solutions to banking customers span range of asset sizes.
 fsg customers typically committed under multi-year contracts provide stable , recurring revenue base opportunities for cross-selling additional financial and payments offerings.
 employ several business models to provide solutions to customers.
 typically deliver highest value to customers when combine software applications deliver in one of several types of outsourcing arrangements , as application service provider , facilities management processing application management arrangement.
 also able to deliver individual applications through software licensing arrangement.
 based expertise arrangements, some clients also retain us to manage it operations without using our proprietary software.
 solutions in segment include:

| 2012     | 2011         | 2010
--------------------------- | -------- | ------------ | --------------
fsg                         | $ 2246.4 | $ 2076.8     | $ 1890.8
psg                         | 2380.6   | 2372.1       | 2354.2
isg                         | 1180.5   | 1177.6       | 917.0
corporate & other           | 0.1      | -0.9 ( 0.9 ) | -16.4 ( 16.4 )
total consolidated revenues | $ 5807.6 | $ 5625.6     | $ 5145.6


company currently under audit by internal revenue service and other major taxing jurisdictions around world.
 possible significant changes in gross balance of unrecognized tax benefits may occur within next 12 months company not expect audits to result in cause significant change to its effective tax rate  other than following items.
 company currently at irs appeals for years 1999 20132002.
 one of issues relates to timing of inclusion of interchange fees received by company relating to credit card purchases by cardholders.
 possible within next 12 months company can reach agreement on this issue at appeals or decide to litigate issue.
 this issue presently being litigated by another company in united states tax court case.
 gross uncertain tax position for this item at december 31 , 2008 is $ 542 million.
 temporary difference only effect to company 2019s effective tax rate be due to net interest and state tax rate differentials.
 if reserve be released tax benefit could be as as $ 168 million.
 company expects to conclude irs audit of u. s.
 federal consolidated income tax returns for years 2003 20132005 within next 12 months.
 gross uncertain tax position at december 31, 2008 for items expected to be resolved is approximately $ 350 million plus gross interest of $ 70 million.
 potential net tax benefit to continuing operations could be approximately $ 325 million.
 major tax jurisdictions in which company and affiliates operate and earliest tax year subject to examination:.
 foreign pretax earnings approximated $ 10. 3 billion in 2008 , $ 9. 1 billion in 2007 , $ 13. 6 billion in 2006 ( $ 5. 1 billion , $ 0. 7 billion and $ 0. 9 billion in discontinued operations ).
 u. s.
 corporation , citigroup and its u. s.
 subsidiaries are subject to u. s.
taxation on all foreign pretax earnings earned by foreign branch.
 of foreign subsidiary or affiliate subject to u. s.
 taxation when repatriated.
 company provides income taxes on undistributed earnings of non-u. s.
 subsidiaries except earnings indefinitely invested outside united states.
 at december 31, 2008  $ 22. 8 billion of accumulated undistributed earnings of non-u.
 subsidiaries indefinitely invested.
 at existing u. s.
 federal income tax rate additional taxes ( net of.
 foreign tax credits ) of $ 6. 1 billion provided if earnings remitted.
 current year 2019s effect on income tax expense from continuing operations included in foreign income tax rate differential line in reconciliation of federal statutory rate to company 2019s effective income tax rate.
 income taxes not provided for on company 2019s savings bank base year bad debt reserves arose before 1988 because under current.
 tax rules taxes payable only to extent amounts distributed in excess of limits by federal law.
 at december 31 , 2008  base year reserves totaled approximately $ 358 million ( subject to tax of $ 125 million ).
 company has no valuation allowance on deferred tax assets at december 31 , 2008 and december 31 , 2007.
 at december 31 , 2008 company had u.
 foreign tax-credit carryforward of $ 10. 5 billion , $ 0. 4 billion expiry date is 2016 , $ 5. 3 billion expiry date 2017 and $ 4. 8 billion expiry date 2018.
 company has u. federal consolidated net operating loss ( ) carryforward of approximately $ 13 billion expiration date is 2028.
 company has general business credit carryforward of $ 0. 6 billion expiration dates are 2027-2028.
company has state local net operating loss carryforwards of $ 16. 2 billion and $ 4. 9 billion in new york state new york city  respectively.
 consists of $ 2. 4 billion and $ 1. 2 billion  expiration date 2027 $ 13. 8 billion and $ 3. 7 billion expiration date 2028 company recorded deferred-tax asset of $ 1. 2 billion less significant net operating losses in other states for recorded deferred-tax asset of $ 399 million expire between 2012 and 2028.
 company recorded deferred-tax assets in apb 23 subsidiaries for foreign net operating loss carryforwards of $ 130 million ( expires 2018 ) and $ 101 million ( no expiration ).
 realization not assured company believes realization of recognized net deferred tax asset of $ 44. 5 billion more likely not based on expectations future taxable income in jurisdictions operates available tax planning strategies defined in sfas 109 could be implemented if necessary to prevent carryforward from expiring.
 company 2019s net deferred tax asset ( dta ) of $ 44. 5 billion consists of approximately $ 36. 5 billion of net.
 federal dtas  $ 4 billion of net state dtas $ 4 billion of net foreign dtas.
 included in net federal dta of $ 36. 5 billion are deferred tax liabilities of $ 4 billion will reverse in relevant carryforward period may used to support dta.
 major components of.
 federal dta are $ 10. 5 billion in foreign tax-credit carryforwards  $ 4. 6 billion in net-operating-loss carryforward  $ 0. 6 billion in general-business-credit carryforward  $ 19. 9 billion in net deductions not yet taken on tax return  $ 0.9 billion in compensation deductions , reduced additional paid-in capital in january 2009 for sfas 123 ( r ) not permit adjustment to dta at december 31 , 2008 because related stock compensation not yet deductible to company.
, citigroup need to generate approximately $ 85 billion taxable income during carryforward periods to fully realize federal , state local dtas.

jurisdiction            | tax year
----------------------- | --------
united states           | 2003
mexico                  | 2006
new york state and city | 2005
united kingdom          | 2007
germany                 | 2000
korea                   | 2005
japan                   | 2006
brazil                  | 2004


page 19 of 94 responded to request for information pursuant section 104 ( e ) of cercla.
 usepa initially estimated cleanup costs between $ 4 million and $ 5 million.
 based on information available company present company not believe this matter material adverse effect upon liquidity results of operations or financial condition of company.
 europe in january 2003 german government passed legislation imposed mandatory deposit of 25 eurocents on all one-way packages containing beverages except milk , wine  fruit juices certain alcoholic beverages.
 ball packaging europe gmbh ( bpe ) other plaintiffs contested enactment mandatory deposit for non-returnable containers based german packaging regulation ( verpackungsverordnung ) in federal and state administrative court.
 other proceedings terminated except for determination of minimal court fees still outstanding in some cases minimal ancillary legal fees.
 relevant industries  including bpe competitors successfully set up germany-wide return system for one-way beverage containers operational since may 1, 2006  date required under deposit legislation.
 item 4.
 submission of matters to vote of security holders no matters submitted to security holders during fourth quarter of 2007.
 part ii item 5.
 market for registrant 2019s common stock related stockholder matters ball corporation common stock ( bll ) traded on new york stock exchange and chicago stock exchange.
 5424 common shareholders of record on february 3 , 2008.
 common stock repurchases table summarizes company 2019s repurchases of common stock during quarter ended december 31 , 2007.
 purchases of securities total number of shares purchased ( a ) average price paid per share total number of shares purchased as part of publicly announced plans or programs maximum number of shares be purchased under plans or programs ( b ).
( a ) includes open market purchases/or shares retained by company to settle employee withholding tax liabilities.
 ( b ) company has ongoing repurchase program for shares authorized for repurchase by ball 2019s board of directors.
 on january 23 , 2008 , ball's board of directors authorized repurchase company of up to total 12 million shares of common stock.
 this repurchase authorization replaces all previous authorizations.
 ( c ) does not include 675000 shares under forward share repurchase agreement december 2007 settled january 7, 2008  for approximately $ 31 million.
 not include shares acquired in 2008 under accelerated share repurchase program december 2007 funded on january 7 , 2008.

| total number of shares purchased ( a ) | average pricepaid per share | total number of shares purchased as part of publicly announced plans or programs | maximum number of shares that may yet be purchased under the plans or programs ( b )
------------------------------- | -------------------------------------- | --------------------------- | -------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------
october 1 to october 28 2007    | 705292                                 | $ 53.53                     | 705292                                                                           | 4904824
october 29 to november 25 2007  | 431170                                 | $ 48.11                     | 431170                                                                           | 4473654
november 26 to december 31 2007 | 8310 ( c )                             | $ 44.99                     | 8310                                                                             | 4465344
total                           | 1144772                                | $ 51.42                     | 1144772                                                                          |


company monitors financial health stability of lenders under revolving credit and long term debt facilities during significant instability in credit markets lenders could be negatively impacted in ability to perform under these facilities.
 in july 2011  in connection with company 2019s acquisition of corporate headquarters  company assumed a $ 38. 6 million nonrecourse loan secured by mortgage on acquired property.
 acquisition of company 2019s corporate headquarters was accounted for as a business combination carrying value of loan secured by acquired property approximates fair value.
 assumed loan had original term of approximately ten years with scheduled maturity date of march 1 , 2013.
 loan includes balloon payment of $ 37. 3 million due at maturity may not be prepaid.
 assumed loan is nonrecourse with lender 2019s remedies for non-performance limited to action against acquired property certain required reserves cash collateral account  except for nonrecourse carve outs related to fraud  breaches of representations , warranties covenants  including related to environmental matters  other standard carve outs for loan type.
 loan requires certain minimum cash flows financial results from property if requirements not met additional reserves may be required.
 assumed loan requires prior approval of lender for certain matters related to property including material leases  changes to property management  transfers of property material alterations to property.
 loan has interest rate of 6. 73% ( 6. 73 % ).
 in connection with assumed loan company incurred and capitalized $ 0. 8 million in deferred financing costs.
 as of december 31 , 2011 outstanding balance on loan was $ 38. 2 million.
 in connection with assumed loan for acquisition of corporate headquarters company was required to set aside amounts in reserve and cash collateral accounts.
as of december 31 , 2011  $ 2. 0 million restricted cash included in prepaid expenses current assets remaining $ 3. 0 million restricted cash included in long term assets.
 interest expense was $ 3. 9 million , $ 2. 3 million $ 2. 4 million for years ended december 31 , 2011 , 2010 2009 .
 interest expense includes amortization of deferred financing costs interest expense under credit long term debt facilities assumed loan discussed above.
 8.
 commitments contingencies obligations under operating leases company leases warehouse space  office facilities space for retail stores certain equipment under non-cancelable operating leases.
 leases expire dates through 2023 excluding extensions at company 2019s option include provisions for rental adjustments.
 table includes executed lease agreements for factory house stores company not occupy as of december 31 , 2011 not include contingent rent company may incur at retail stores based on future sales above specified limit.
 schedule of future minimum lease payments for non-cancelable real property operating leases as of december 31 , 2011 : ( in thousands ) operating.
 included in selling  general administrative expense was rent expense of $ 26. 7 million , $ 21. 3 million $ 14. 1 million for years ended december 31 , 2011, 2010 2009  under non-cancelable

( in thousands )                    | operating
----------------------------------- | ---------
2012                                | $ 22926
2013                                | 23470
2014                                | 26041
2015                                | 24963
2016                                | 18734
2017 and thereafter                 | 69044
total future minimum lease payments | $ 185178


contracts as of december 31 , 2006  mature in 2007.
 forward contract notional amounts below expressed in stated currencies ( in thousands ).
 forward currency contracts:.
 movement of 10% ( 10 % ) in value of u. s.
 dollar against foreign currencies impact expected net earnings by approximately $ 0. 1 million.
 item 8.
 financial statements and supplementary data financial statements supplementary data required by this item included herein commencing on page f-1.
 item 9.
 changes in disagreements with accountants on accounting and financial disclosure item 9a.
 controls and procedures ( a ) evaluation of disclosure controls and procedures management , with participation of chief executive officer and chief financial officer , evaluated effectiveness of disclosure controls and procedures as of end of period covered by report.
 based on evaluation chief executive officer chief financial officer concluded disclosure controls and procedures end of period report functioning effectively to provide reasonable assurance that information required to be disclosed in reports filed under securities exchange act of 1934 is recorded , processed  summarized reported within time periods specified in sec 2019s rules and forms accumulated and communicated to management including chief executive officer and chief financial officer  as appropriate to allow timely decisions regarding disclosure.
 controls system cannot provide absolute assurance  objectives of controls system are met no evaluation of controls can provide absolute assurance that all control issues and instances of fraud  if within company detected.
 b ) management 2019s report on internal control over financial reporting management 2019s report internal control financial reporting set forth on page f-2 of annual report on form 10-k incorporated by reference herein.
( c ) change in internal control over financial reporting no change in internal control reporting occurred during recent fiscal quarter materially affected , or likely to affect our internal control over financial reporting.
 item 9b.
 other information

| ( pay ) /receive
------------------ | ------------------
u.s . dollars      | -114000 ( 114000 )
euros              | -4472 ( 4472 )
singapore dollars  | 37180
canadian dollars   | 81234
malaysian ringgits | 85963


marathon oil corporation notes consolidated financial statements operating lease rental expense was : ( in millions ) 2008 2007 2006 minimum rental ( a ) $ 245 $ 209 $ 172.
 excludes $ 5 million , $ 8 million $ 9 million paid by united states steel in 2008 , 2007 2006 on assumed leases.
 27.
 contingencies commitments subject of party to pending or threatened legal actions , contingencies commitments involving variety of matters including laws regulations relating to environment.
 certain matters discussed below.
 ultimate resolution of contingencies could individually or be material to our consolidated financial statements.
 management believes we will remain viable competitive enterprise possible contingencies could be resolved unfavorably.
 environmental matters 2013 subject to federal , state local foreign laws regulations relating to environment.
 laws provide for control of pollutants released into environment require responsible parties undertake remediation of hazardous waste disposal sites.
 penalties may be imposed for noncompliance.
 at december 31 , 2008 2007  accrued liabilities for remediation totaled $ 111 million and $ 108 million.
 not possible to estimate ultimate amount of all remediation costs incurred or penalties imposed.
 receivables for recoverable costs from certain states under programs to assist companies in clean-up efforts related to underground storage tanks at retail marketing outlets were $ 60 and $ 66 million at december 31 , 2008 and 2007.
 defendant  with other refining companies in 20 cases in three states alleging damages for methyl tertiary-butyl ether ( 201cmtbe 201d ) contamination.
 received seven toxic substances control act notice letters involving potential claims in two states.
 such notice letters often followed by litigation.
like cases settled in 2008 , remaining mtbe cases consolidated in multidistrict litigation in southern district of new york for pretrial proceedings.
 nineteen of remaining cases allege damages to water supply wells similar to damages claimed in settled cases.
 in other remaining case state of new jersey seeking natural resources damages allegedly from contamination of groundwater by mtbe.
 only mtbe contamination case in we are a defendant and natural resources damages are sought.
 we vigorously defending these cases.
 with other defendants engaged in settlement discussions related to majority of cases in we are defendant.
 do not expect our share of liability if for remaining cases to significantly impact our consolidated results of operations , financial position or cash flows.
 lawsuit filed in united states district court for southern district of west virginia alleges our catlettsburg , kentucky , refinery distributed contaminated gasoline to wholesalers and retailers for period prior to august  2003 causing permanent damage to storage tanks  dispensers related equipment resulting in lost profits business disruption and personal and real property damages.
 following incident we conducted remediation operations at affected facilities deny permanent damages resulted from incident.
 class action certification granted in august 2007.
 entered into tentative settlement agreement in case.
 notice of proposed settlement sent to class members.
 approval by court after fairness hearing required before settlement finalized.
 fairness hearing scheduled in first quarter of 2009.
 proposed settlement will not significantly impact our consolidated results of operations , financial position or cash flows.
 guarantees 2013 we provided certain guarantees  direct and indirect of indebtedness of other companies.
under terms of most guarantee arrangements, we required to perform should guaranteed party fail to fulfill obligations specified arrangements.
 in addition to financial guarantees we also have various performance guarantees related to specific agreements.

( in millions )      | 2008  | 2007  | 2006
-------------------- | ----- | ----- | --------
minimum rental ( a ) | $ 245 | $ 209 | $ 172
contingent rental    | 22    | 33    | 28
sublease rentals     | 2013  | 2013  | -7 ( 7 )
net rental expense   | $ 267 | $ 242 | $ 193


green realty corp.
 2011 annual reportnotes to consolidated financial statements plan granted to employees including executives vesting annually upon completion service period or meeting financial performance criteria.
 annual vesting occurs at rates from 15% ( 15 % ) to 35% ( 35 % ) once per- formance criteria reached.
 summary of restricted stock as of december a031 , 2011  2010 2009 charges during years ended presented.
 compensation expense recorded $ 17365401 $ 15327206 $ 23301744 weighted average fair value of restricted stock granted year $ 21768084 $ 28269983 $ 4979218 fair value of restricted stock vested during years ended december a031, 2011 , 2010 2009 was $ 4. 3 a0million , $ 16. 6 a0million $ 28. 0 a0million  respectively.
 as of december a031 , 2011  $ 14. 7 a0million of total unrecognized compensation cost related to unvested restricted stock expected to be recognized over weighted-average period of two years.
 for years ended december a031 , 2011  2010 2009  approximately $ 3. 4 a0million , $ 2. 2 a0million $ 1. 7 a0million  capitalized to assets associated with compensation expense related to long- term compensation plans restricted stock and stock options.
 granted ltip units fair value of $ 8. 5 a0million as 2011 performance stock bonus award.
 grant date fair value of ltip unit awards calculated in accordance with asc 718.
 third party consultant determined fair value of ltip units discount from unrestricted common stock price.
 discount calculated by considering uncertainty ltip units reach parity with other common partnership units and illiquidity due to transfer restrictions.
2003 long- term outperformance compensation program board of directors adopted long- term , seven- year compen- sation program for certain members senior management.
 a0program provided for restricted stock awards to plan participants if holders common equity achieved total return in excess of 40% ( 40 % ) over 48-month period commenc- ing april a01 , 2003.
 in april 2007  compensation committee determined under terms 2003 outperformance plan  as of march a031 , 2007  performance hurdles met maximum performance pool of $ 22825000  forfeitures established.
 with event approximately 166312 shares of restricted stock ( adjusted for forfeitures ) allocated under 2005 plan.
 in accordance with terms program 40% ( 40 % ) of each award vested on march a031 , 2007 remainder vested over subsequent three years based on continued employment.
 fair value of awards under program on date of grant determined to be $ 3. 2 a0million.
 fair value expensed over term of restricted stock award.
 forty percent of value of award amortized over four years from date of grant balance amortized in equal parts over five , six and seven years. 20% ( 20 % ) of total value amortized over five years ( 20% 20 % ) per year ) 20% ( 20 % ) total value amortized over six years ( 16. 67% ( 16. 67 % ) per year ) 20% ( 20 % ) of total value amortized over seven years ( 14. 29% ( 14. 29 % ) per year ).
 recorded compensation expense of $ 23000 and $ 0. 1 a0million related to this plan during years ended december a031 , 2010 and 2009  respectively.
 cost of 2003 outperformance plan fully expensed as of march a031 , 2010.
2005 long- term outperformance compensation program december 2005  compensation committee board of directors approved long- term incentive compensation program  2005 outperformance plan.
 participants 2005 plan entitled to earn ltip units in our operating partnership if total return to stockholders for three- year period beginning december a01 , 2005 exceeded cumulative total return to stockholders of 30% ( 30 % ) ; par- ticipants entitled to earn ltip units earlier in achieved maximum performance for 30 consecutive days.
 total number of ltip units could be earned number assumed value equal to 10% ( 10 % ) of outperformance amount in excess of 30% ( 30 % ) benchmark  subject to maximum dilution cap equal to lesser of 3% ( 3 % ) of outstanding shares and units of limited partnership interest as of december a01 , 2005 or $ 50. 0 a0million.
 on june a014 , 2006  compensation committee determined under terms of a02005 outperformance plan  as of june a08 , 2006  performance period accelerated maximum performance pool of $ 49250000 , account forfeitures earned.
 under 2005 outperformance plan participants also earned additional ltip units with value equal to distributions paid with respect to ltip units earned if ltip units earned at beginning of performance period.
 total number of ltip units earned under 2005 outperformance plan by all participants as of june a08 , 2006 was 490475.
 under terms 2005 outperformance plan all ltip units earned remained subject to time- based vesting  one- third of ltip units earned vested on each of november a030 , 2008 and first two anniversaries thereafter based on continued employment.
earned ltip units received regular quarterly distributions per unit equal to dividends per share paid on our common stock whether or not vested.
 cost of 2005 outperformance plan ( approximately $ 8. 0 a0million , subject to adjustment for forfeitures ) amortized into earnings through final vesting period.
 recorded approximately $ 1. 6 a0million and $ 2. 3 a0million of compensation expense during years ended december a031 , 2010 and 2009  in connection with 2005 outperformance plan.
 cost 2005 fully expensed as of june a030 , 2010.
 2006 long- term outperformance compensation program on august a014 , 2006  compensation committee of board directors approved long- term incentive compensation program 2006 outperformance plan.
 performance criteria not met no ltip units earned under 2006 outperformance plan.
 cost of 2006 outperformance plan ( approximately $ 16. 4 a0million  subject to adjustment for forfeitures ) amortized into earnings through july a031 , 2011.
 recorded approximately $ 70000 , $ 0. 2 a0million and $ 0. 4 a0million of compensation expense during years ended december a031 , 2011 , 2010 and 2009  in connection with 2006 outperformance plan.

| 2011           | 2010           | 2009
----------------------------------------------------------------------- | -------------- | -------------- | ----------
balance at beginning of year                                            | 2728290        | 2330532        | 1824190
granted                                                                 | 185333         | 400925         | 506342
cancelled                                                               | -1167 ( 1167 ) | -3167 ( 3167 ) | 2014
balance at end of year                                                  | 2912456        | 2728290        | 2330532
vested during the year                                                  | 66299          | 153644         | 420050
compensation expense recorded                                           | $ 17365401     | $ 15327206     | $ 23301744
weighted average fair value of restricted stock granted during the year | $ 21768084     | $ 28269983     | $ 4979218