mondavi produces  markets sells premium super-premium fine california wines under woodbridge by robert mondavi , robert mondavi private selection robert mondavi winery brand names.
 woodbridge robert mondavi private selection are leading premium and super-premium wine brands by volume in united states.
 acquisition of robert mondavi supports company 2019s strategy of strengthening breadth portfolio across price segments to capitalize on overall growth in pre- mium  super-premium fine wine categories.
 company believes acquired robert mondavi brand names have strong brand recognition globally.
 majority of robert mondavi 2019s sales are generated in united states.
 company intends to leverage robert mondavi brands in united states through selling  marketing distribution infrastructure.
 company intends to further expand distribution for robert mondavi brands in europe through constellation europe infrastructure.
 company and robert mondavi have complementary busi- nesses share common growth orientation operating philosophy.
 robert mondavi acquisition provides company with greater presence in fine wine sector within united states ability to capitalize on broader geographic distribution in strategic international markets.
 robert mondavi acquisition supports company 2019s strategy of growth breadth across categories geographies strengthens competitive position in core markets.
 company believes growth opportunities for premium  super-premium fine wines in united kingdom  united states other wine markets.
 total consid- eration paid in cash to robert mondavi shareholders was $ 1030. 7 million.
 company expects to incur direct acquisition costs of $ 11. 2 million.
 purchase price was financed with borrowings under company 2019s 2004 credit agreement ( defined in note 9 ).
accordance with pur- chase method of accounting acquired net assets recorded at fair value at date of acquisition.
 purchase price based primarily on estimated future operating results of robert mondavi  including factors described above estimated benefit from operating cost synergies.
 results of operations of robert mondavi business reported in constellation wines segment included in consolidated statement of income since acquisition date.
 following table summarizes estimated fair values of assets acquired and liabilities assumed in robert mondavi acquisition at date of acquisition.
 company in process of obtaining third-party valuations of certain assets and liabilities refining restructuring plan under development finalized during company 2019s year ending february 28 , 2006 ( see note19 ).
 allocation of purchase price subject to refinement.
 estimated fair values at december 22 , 2004  as follows : {in thousands}.
 trademarks not subject to amortization.
 none of goodwill expected to be deductible for tax purposes.
 in connection with robert mondavi acquisition and intention to sell certain winery properties and related assets  other vineyard prop- erties company classified certain assets as held for sale as of february 28 , 2005.
 company expects to sell these assets during year ended february 28 , 2006  for net pro- ceeds of approximately $ 150 million to $ 175 million.
 no gain or loss expected to recognized upon sale of these assets.
 hardy acquisition 2013 on march 27 , 2003  company acquired control of brl hardy limited , now known as hardy wine company limited ( 201chardy 201d ) on april 9 , 2003  company completed acquisition of all of hardy 2019s outstanding capital stock.
result acquisition of hardy  company acquired remaining 50% ( 50 % ) ownership of pacific wine partners llc ( 201cpwp 201d ), joint venture company established with hardy in july 2001.
 acquisition of hardy with remaining interest in pwp referred to as 201chardy acquisition. 201d acquisition company acquired one of australia 2019s largest wine producers with interests in winer- ies vineyards in australia 2019s major wine regions new zealand united states hardy 2019s market- ing sales operations in united kingdom.
 total consideration paid in cash and class common stock to hardy shareholders was $ 1137. 4 million.
 company recorded direct acquisition costs of $ 17. 2 million.
 acquisition date for accounting march 27 , 2003.
 company recorded $ 1. 6 million reduction in purchase price to reflect imputed interest between accounting acquisition date and final payment of consider- ation.
 charge included as interest expense in consolidated statement of income for year ended february 29 , 2004.
 cash portion of purchase price paid to hardy shareholders optionholders ( $ 1060. 2 mil- lion ) financed with $ 660. 2 million of borrowings under company 2019s existing credit agreement and $ 400. 0 million

current assets               | $ 494788
---------------------------- | ---------
property plant and equipment | 452902
other assets                 | 178823
trademarks                   | 186000
goodwill                     | 590459
total assets acquired        | 1902972
current liabilities          | 309051
long-term liabilities        | 552060
total liabilities acquired   | 861111
net assets acquired          | $ 1041861


issuer purchases of equity securities during three months ended december 31 , 2010 repurchased 1460682 shares of common stock for aggregate of $ 74. 6 million , including commissions and fees pursuant our publicly announced stock repurchase program follows : period total number of shares purchased ( 1 ) average price paid per share total number of shares purchased part of publicly announced plans or programs approximate dollar value of shares be purchased under plans or programs ( in millions ).
 1 ) repurchases made to $ 1. 5 billion stock repurchase program approved by board of directors in february 2008 ( 201cbuyback 201d ).
 under program management authorized to purchase shares through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws other legal requirements subject to market conditions other factors.
 facilitate repurchases make purchases trading plans under rule 10b5-1 of exchange act  allows to repurchase shares during periods prevented from under insider trading laws or self-imposed trading blackout periods.
 program may be discontinued any time.
 subsequent to december 31 , 2010  repurchased 1122481 shares of common stock for aggregate of $ 58. 0 million , including commissions and fees pursuant buyback.
 as of february 11 , 2011  repurchased total of 30. 9 million shares of common stock for aggregate of $ 1. 2 billion , including commissions and fees pursuant buyback.
 expect to continue to manage pacing of remaining $ 273. 1 million under buyback in response to general market conditions other relevant.

period               | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | approximate dollar value of shares that may yet be purchasedunder the plans or programs ( in millions )
-------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------
october 2010         | 722890                                 | $ 50.76                      | 722890                                                                           | $ 369.1
november 2010        | 400692                                 | $ 51.81                      | 400692                                                                           | $ 348.3
december 2010        | 337100                                 | $ 50.89                      | 337100                                                                           | $ 331.1
total fourth quarter | 1460682                                | $ 51.08                      | 1460682                                                                          | $ 331.1


treasury security.
 unamortized discount debt issuance costs amortized over remaining term of 2022 notes.
 2021 notes.
 may 2011 company issued $ 1. 5 billion unsecured unsubordinated obligations.
 notes issued as two separate series of senior debt securities including $ 750 million of 4. 25% ( 4. 25 % ) notes maturing in may 2021 and $ 750 million of floating rate notes ( 201c2013 floating rate notes 201d ) repaid in may 2013 at maturity.
 net proceeds fund repurchase of blackrock 2019s series b from affiliates merrill lynch & co. inc.
 ( 201cmerrill lynch 201d ).
 interest on 4. 25% ( 4. 25 % ) notes due in 2021 ( 201c2021 notes 201d ) payable semi-annually on may 24 and november 24 each year commenced november 24  2011 approximately $ 32 million per year.
 2021 notes may be redeemed prior to maturity whole or part at option company at 201cmake-whole 201d redemption price.
 unamortized discount debt issuance costs amortized over remaining term of 2021 notes.
 2019 notes.
 december 2009 company issued $ 2. 5 billion unsecured unsubordinated obligations.
 issued as three separate series of senior debt securities including $ 0. 5 billion of 2. 25% ( 2. 25 % ) notes  repaid in december 2012 , $ 1. 0 billion of 3. 50% ( 3. 50 % ) notes  repaid in december 2014 at maturity $ 1. 0 billion of 5. 0% ( 5. 0 % ) notes maturing in december 2019 ( 201c2019 notes 201d ).
proceeds of offering used to repay borrowings under cp program finance acquisition of barclays global investors ( 201cbgi 201d ) from barclays on december 1, 2009 ( 201cbgi transaction 201d ) for general corporate purposes.
 interest on 2019 notes of approximately $ 50 million per year payable semi- annually arrears on june 10 and december 10 each year.
 notes may be redeemed prior to maturity in whole or part at option company at 201cmake-whole 201d redemption price.
 unamortized discount and debt issuance costs amortized over remaining term of 2019 notes.
 2017 notes.
 in september 2007 company issued $ 700 million in aggregate principal amount of 6. 25% ( 6. 25 % ) senior unsecured unsubordinated notes maturing on september 15 , 2017 ( 201c2017 notes 201d ).
 portion of net proceeds of 2017 notes used to fund initial cash payment for acquisition of fund-of-funds business of quellos remainder used for general corporate purposes.
 interest payable semi-annually in arrears on march 15 and september 15 each year or approximately $ 44 million per year.
 2017 notes may be redeemed prior to maturity in whole or part option company at 201cmake-whole 201d redemption price.
 unamortized discount and debt issuance costs amortized over remaining term of 2017 notes.
 13.
 commitments contingencies operating lease commitments company leases primary office spaces under agreements expire through 2035.
 future minimum commitments under operating leases : in millions ).
 rent expense and certain office equipment expense under lease agreements amounted to $ 136 million , $ 132 million $ 137 million in 2015 , 2014 2013  respectively.
 investment commitments.
at december 31 , 2015  company had $ 179 million capital commitments to fund sponsored investment funds  including consolidated vies.
 these funds include private equity funds real estate funds infrastructure funds opportunistic funds.
 amount excludes additional commitments by consolidated funds of funds to third-party funds as third-party noncontrolling interest holders have legal obligation to fund respective commitments of such funds funds.
 in addition to capital commitments of $ 179 million  company had approximately $ 38 million of contingent commitments for certain funds investment periods expired.
 timing of funding of these commitments unknown commitments callable on demand at any time prior to expiration commitment.
 unfunded commitments not recorded on consolidated statements of financial condition.
 commitments do not include potential future commitments approved company not yet legally binding.
 company intends to make additional capital commitments to fund additional investment products for with clients.
 contingencies contingent payments.
 company acts as portfolio manager in derivative transactions has maximum potential exposure of $ 17 million between company and counterparty.
 see note 7 , derivatives and hedging  for further discussion.
 contingent payments related to business acquisitions.
 connection with certain acquisitions blackrock required to make contingent payments  subject to acquired businesses achieving specified performance targets over certain period subsequent to applicable acquisition date.
 fair value of remaining aggregate contingent payments at december 31 , 2015 not significant to condensed consolidated statement of financial condition included in other liabilities.

year       | amount
---------- | ------
2016       | $ 134
2017       | 133
2018       | 131
2019       | 125
2020       | 120
thereafter | 560
total      | $ 1203


majority increased tax position attributable to temporary differences.
 increase in 2014 current period tax positions related to company 2019s change in tax accounting method filed in 2008 for repair and maintenance costs on utility plant.
 company not anticipate material changes to unrecognized tax benefits within next year.
 if company sustains positions at december 31 , 2014 and 2013  unrecognized tax benefit of $ 9444 and $ 7439  respectively excluding interest penalties impact company 2019s effective tax rate.
 table summarizes changes in company 2019s valuation allowance:.
 included in 2013 is discrete tax benefit totaling $ 2979 associated with entity re-organization within company 2019s market-based operations segment allowed for utilization of state net operating loss carryforwards and release of associated valuation allowance.
 note 13 : employee benefits pension other postretirement benefits company maintains noncontributory defined benefit pension plans covering eligible employees of regulated utility and shared services operations.
 benefits plans based on employee 2019s years of service and compensation.
 pension plans closed for all employees.
 plans closed for most employees hired or after january 1 , 2006.
 union employees hired after january 1 , 2001 had accrued benefit frozen receive benefit as lump sum upon termination or retirement.
 union employees hired after january 1 , 2001 and non-union employees hired after january 1 , 2006 provided with 5. 25%. ) of base pay defined contribution plan.
 company not participate in multiemployer plan.
 company 2019s pension funding practice is to contribute greater of minimum amount required by employee retirement income security act of 1974 or normal cost.
 company will consider additional contributions if needed to avoid 201cat risk 201d status and benefit restrictions under pension protection act of 2006.
company may consider increased contributions based on financial requirements plans 2019 funded position.
 pension plan assets invested in actively managed commingled funds including equity and bond funds fixed income securities guaranteed interest contracts with insurance companies real estate funds real estate investment trusts ( 201creits 201d.
 pension expense in excess of amount contributed to pension plans deferred by regulated subsidiaries pending future recovery in rates for utility services contributions made to plans.
 ( see note 6 ) company has unfunded noncontributory supplemental non-qualified pension plans provide additional retirement benefits to certain employees.

balance at january 1 2012                 | $ 21579
----------------------------------------- | --------------
increases in current period tax positions | 2014
decreases in current period tax positions | -2059 ( 2059 )
balance at december 31 2012               | $ 19520
increases in current period tax positions | 2014
decreases in current period tax positions | -5965 ( 5965 )
balance at december 31 2013               | $ 13555
increases in current period tax positions | 2014
decreases in current period tax positions | -3176 ( 3176 )
balance at december 31 2014               | $ 10379


october 21 , 2004  hartford declared dividend common stock $ 0. 29 per share payable january 3 , 2005 to shareholders of record as of december 1 , 2004.
 hartford declared $ 331 paid $ 325 dividends shareholders 2004  declared $ 300 paid $ 291 dividends shareholders 2003  declared $ 262 paid $ 257 in 2002.
 aoci - aoci increased by $ 179 as december 31 , 2004 compared with december 31 , 2003.
 increase in aoci result of life 2019s adoption of sop 03-1  resulted in $ 292 cumulative effect for unrealized gains on securities first quarter of 2004 related to reclassification of investments from separate account assets to general account assets partially offset by net unrealized losses on cash-flow hedging instruments.
 funded status of company 2019s pension postretirement plans dependent upon factors including returns on invested assets level market interest rates.
 declines in value of securities traded in equity markets declines in long- term interest rates negative impact on funded status plans.
 company recorded minimum pension liability as of december 31 , 2004  2003  resulted after-tax reduction of stockholders 2019 equity of $ 480 and $ 375.
 minimum pension liability not affect company 2019s results of operations.
 additional information on stockholders 2019 equity and aoci see notes 15 and 16  of notes to consolidated financial statements.
 cash flow 2004 2003 2002.
 2004 compared to 2003 2014 cash from operating activities reflects premium cash flows in excess of claim payments.
 decrease in cash operating activities due to $ 1. 15 billion settlement macarthur litigation in 2004.
cash financing activities decreased due to lower proceeds from investment universal life-type contracts result of adoption of sop 03-1  decreased capital raising activities  repayment of commercial paper early retirement of junior subordinated debentures in 2004.
 decrease in cash from financing activities and operating cash flows invested long-term accounted for majority of change in cash used for investing activities.
 2003 compared to 2002 2014 increase in cash by operating activities was result of strong premium cash flows.
 financing activities increased due to capital raising activities related to 2003 asbestos reserve addition decreased due to repayments on long-term debt lower proceeds from investment universal life-type contracts.
 increase in cash from financing activities accounted for majority of change in cash used for investing activities.
 operating cash flows in each last three years adequate to meet liquidity requirements.
 equity markets for discussion of potential impact of equity markets on capital liquidity  see capital markets risk management section under 201cmarket risk 201d.
 ratings ratings important factor in establishing competitive position in insurance and financial services marketplace.
 no assurance company's ratings will continue for or not be changed.
 in company's ratings downgraded , level revenues or persistency of company's business may be adversely impacted.
 on august 4 , 2004  moody 2019s affirmed company 2019s hartford life , inc. 2019s a3 senior debt ratings aa3 insurance financial strength ratings of property-casualty and life insurance operating subsidiaries.
 moody 2019s changed outlook for all these ratings from negative to stable.
 since announcement of suit filed by new york attorney general 2019s office against marsh & mclennan companies , inc. marsh , inc.
october 14 , 2004 , major independent ratings agencies continue monitor developments to suit.
 october 22 , 2004 , standard & poor 2019s revised outlook on u. s.
 property/casualty commercial lines sector to negative from stable.
 november 23 , 2004 , standard & poor 2019s revised outlook on financial strength credit ratings of property-casualty insurance subsidiaries to negative from stable.
 outlook on life insurance subsidiaries corporate debt unaffected.

cash flow                                 | 2004             | 2003             | 2002
----------------------------------------- | ---------------- | ---------------- | ----------------
net cash provided by operating activities | $ 2634           | $ 3896           | $ 2577
net cash used for investing activities    | $ -2401 ( 2401 ) | $ -8387 ( 8387 ) | $ -6600 ( 6600 )
net cash provided by financing activities | $ 477            | $ 4608           | $ 4037
cash 2014 end of year                     | $ 1148           | $ 462            | $ 377


employee benefit plans sysco has defined benefit defined contribution retirement plans for employees.
 company contributes to multi-employer plans under provides health care benefits to eligible retirees dependents.
 sysco maintains qualified retirement plan ) pays benefits to employees at retirement using formulas based on participant 2019s years of service compensation.
 defined contribution 401 ( k ) plan provides under certain circumstances company may make matching contributions of up to 50% ( ) of first 6% ( 6 % ) of participant 2019s compensation.
 sysco 2019s contributions to plan were $ 28109000 in 2005, $ 27390000 in 2004  $ 24102000 in 2003.
 in addition to receiving benefits upon retirement under company 2019s defined benefit plan participants in management incentive plan ( 201cmanagement incentive compensation 201d ) will receive benefits under supplemental executive retirement plan ( serp ).
 this plan is nonqualified , unfunded supplementary retirement plan.
 obligations sysco maintains life insurance policies on lives participants with carrying values of $ 138931000 at july 2 , 2005 and $ 87104000 at july 3 , 2004.
 these policies not included as plan assets or in funded status amounts in table below.
 sysco is sole owner and beneficiary of such policies.
 projected benefit obligations and accumulated benefit obligations for serp were $ 375491000 and $ 264010000  as of july 2 , 2005 $ 269815000 and $ 153652000 , as of july 3  company made cash contributions to pension plans of $ 220361000 and $ 165512000 in fiscal years 2005 and 2004 including $ 214000000 and $ 160000000 in voluntary contributions to retirement plan in fiscal 2005 and 2004 .
in amounts contributed in fiscal 2005 was $ 134000000 voluntarily contributed to qualified pension plan in fourth quarter.
 decision to increase contributions pension plan fiscal 2005 primarily due to decreased discount rate increased pension obligation negatively impacted fiscal 2005 year-end pension funded status.
 in fiscal 2006  previous years contributions to retirement plan not required to meet erisa minimum funding requirements company anticipates make voluntary contributions of approximately $ 66000000.
 company 2019s contributions to serp and other post- retirement plans made in amounts needed to fund current year benefit payments.
 estimated fiscal 2006 contributions to fund benefit payments for serp and other post-retirement plans are $ 7659000 and $ 338000 , respectively.
 estimated future benefit payments : postretirement pension benefits plans.

| pension benefits | other postretirement plans
--------------------- | ---------------- | --------------------------
2006                  | $ 27316000       | $ 338000
2007                  | 29356000         | 392000
2008                  | 33825000         | 467000
2009                  | 39738000         | 535000
2010                  | 46957000         | 627000
subsequent five years | 355550000        | 4234000


pension plan investments held in master trust  with northern trust company.
 investments in master trust valued at fair value determined based on fair value of underlying investments of master trust.
 investments in securities traded on public security exchanges valued at closing market prices on valuation date ; where no sale made on valuation date security generally valued at most recent bid price.
 certain short-term investments carried at cost , approximates fair value.
 investments in registered investment companies and common trust funds primarily invest in stocks , bonds commodity futures valued using publicly available market prices for underlying investments by entities.
 majority of pension plan assets invested in equity securities equity portfolios historically provided higher returns than debt other asset classes over extended time horizons expected to do in future.
 equity investments entail greater risks than other investments.
 equity risks balanced by investing significant portion of plan 2019s assets in high quality debt securities.
 average quality rating of debt portfolio exceeded aa as of december 31 , 2008 and 2007.
 debt portfolio broadly diversified invested primarily in.
 treasury , mortgage  corporate securities with intermediate average maturity.
 weighted-average maturity of debt portfolio was 5 years at december 31 , 2008 and 2007 .
 investment of pension plan assets in securities issued by union pacific prohibited for equity and debt portfolios other than through index fund holdings.
 other retirement programs thrift plan 2013 provide defined contribution plan ( thrift plan ) to eligible non-union employees make matching contributions to thrift plan.
 match 50 cents for each dollar contributed by employees up to first six percent of compensation contributed.
thrift plan contributions were $ 14 million in 2008  $ 14 million 2007  $ 13 million in 2006.
 railroad retirement system 2013 all railroad employees covered by railroad retirement system ( system ).
 contributions to system expensed as incurred amounted to approximately $ 620 million in 2008  $ 616 million in 2007 $ 615 million in 2006.
 collective bargaining agreements 2013 provide postretirement healthcare life insurance benefits for eligible union employees.
 premiums under plans expensed as incurred amounted to $ 49 million in 2008 $ 40 million in 2007 and 5.
 other income income included for years ended december 31 : millions of dollars 2008 2007 2006.

millions of dollars                          | 2008       | 2007       | 2006
-------------------------------------------- | ---------- | ---------- | ----------
rental income                                | $ 87       | $ 68       | $ 83
net gain on non-operating asset dispositions | 41         | 52         | 72
interest income                              | 21         | 50         | 29
sale of receivables fees                     | -23 ( 23 ) | -35 ( 35 ) | -33 ( 33 )
non-operating environmental costs and other  | -34 ( 34 ) | -19 ( 19 ) | -33 ( 33 )
total                                        | $ 92       | $ 116      | $ 118


table of contents 4.
 acquisitions , dispositions plant closures acquisitions 2022. f. ter.
 s. p. a.
 on december 1 , 2016  company acquired 100% ( 100 % ) of stock of forli , italy based. f. ter.
 s. p. a.
 ( "softer" ), leading thermoplastic compounder.
 acquisition of softer increases company's global engineered materials product platforms , extends operational model , technical industry solutions capabilities expands project pipelines.
 acquisition accounted for as business combination acquired operations included in advanced engineered materials segment.
 pro forma financial information since acquisition date not provided acquisition did not material impact on company's financial information.
 company allocated purchase price of acquisition to identifiable assets acquired and liabilities assumed based on estimated fair values as of acquisition date.
 excess of purchase price over aggregate fair values recorded as goodwill ( note 2 and note 11 ).
 company calculated fair value of assets acquired using income , market  cost approach ( or combination ).
 fair values determined based on level 3 inputs ( note 2 ) including estimated future cash flows , discount rates  royalty rates growth rates sales projections  retention rates terminal values  require significant management judgment susceptible to change.
 purchase price allocation based upon preliminary information subject to change if additional information about facts circumstances at acquisition date becomes available.
 final fair value of net assets acquired may result in adjustments to assets liabilities including goodwill.
 any subsequent measurement period adjustments not expected to have material impact on company's results of operations.
 preliminary purchase price allocation for softer acquisition is as follows : december 1 , 2016 ( in $ millions ).
______________________________ ( 1 ) goodwill consists of expected revenue operating synergies from acquisition.
 none goodwill deductible for income tax.
 ( 2 ) includes $ 23 million indemnity receivable for uncertain tax positions related to acquisition.
 transaction related costs of $ 3 million expensed incurred to selling , general administrative expenses in consolidated statements of operations.
 pro forma net earnings ( loss ) of softer in company's consolidated statement operations was approximately 2% ( 2 % ) ( unaudited ) of consolidated net earnings ( loss ) acquisition occurred beginning of 2016.
 amount softer net earnings ( loss ) consolidated company since acquisition date not material.

| as ofdecember 1 2016 ( in $ millions )
---------------------------------------------- | --------------------------------------
cash and cash equivalents                      | 11
trade receivables - third party and affiliates | 53
inventories                                    | 58
property plant and equipment net               | 68
intangible assets ( note 11 )                  | 79
goodwill ( note 11 ) ( 1 )                     | 106
other assets ( 2 )                             | 33
total fair value of assets acquired            | 408
trade payables - third party and affiliates    | -41 ( 41 )
total debt ( note 14 )                         | -103 ( 103 )
deferred income taxes                          | -30 ( 30 )
other liabilities                              | -45 ( 45 )
total fair value of liabilities assumed        | -219 ( 219 )
net assets acquired                            | 189


loan commitments ( unfunded loans unused lines of credit ) asset purchase agreements standby letters of credit issued to accommodate financing needs of state street 2019s clients provide credit enhancements to special purpose entities.
 loan commitments are agreements state street to lend monies future date.
 asset purchase agreements are commitments to purchase receivables or securities subject to conditions at december 31 , 2001 include $ 8. 0 billion outstanding to special purpose entities.
 standby letters of credit letters credit commit state street to make payments on behalf of clients special purpose entities when certain specified events occur.
 standby letters of credit outstanding to special purpose entities were $ 608 million at december 31 , 2001.
 loan  asset purchase letter of credit commitments subject to same credit policies reviews as loans.
 amount nature of collateral obtained based upon management 2019s assessment of credit risk.
 approximately 89% ( 89 % ) of loan commitments asset purchase agreements expire within one year from date of issue.
 commitments expected to expire or total commitment amounts do not necessarily represent future cash requirements.
 summary of contractual amount of credit-related off-balance sheet financial instruments at december 31:.
 state street corporation 53

( dollars in millions )        | 2001     | 2000
------------------------------ | -------- | --------
indemnified securities on loan | $ 113047 | $ 101438
loan commitments               | 12962    | 11367
asset purchase agreements      | 10366    | 7112
standby letters of credit      | 3918     | 4028
letters of credit              | 164      | 218


fair value of interest agreements at december 31 , 2007 and december 31 2006 was $ 3 million and $ 1 million respectively.
 company exposed to credit loss in nonperformance by counterparties to swap contracts.
 company minimizes credit risk by only dealing with leading creditworthy financial institutions not anticipate nonperformance.
 contracts distributed among several financial institutions all have investment grade credit ratings minimizing credit risk concentration.
 stockholders 2019 equity derivative instruments activity net of tax included in non-owner changes to equity within consolidated statements of stockholders 2019 equity for years ended december 31 , 2007 and 2006 is as follows:.
 net investment in foreign operations hedge at december 31  2007 and 2006  company hedges of foreign currency exposure net investments foreign operations.
 investments hedge during first quarter of 2006  company entered into zero-cost collar derivative ( 201csprint nextel derivative 201d ) to protect against price fluctuations in 37. 6 million shares of sprint nextel corporation ( 201csprint nextel 201d ) non-voting common stock.
 during second quarter of 2006  result of sprint nextel 2019s spin-off of embarq corporation through dividend to sprint nextel shareholders company received approximately 1. 9 million shares of embarq corporation.
 floor and ceiling prices of sprint nextel derivative adjusted accordingly.
 derivative not designated as a hedge under provisions of sfas no.
 133 , 201caccounting for derivative instruments and hedging activities. to reflect change in fair value of sprint nextel derivative company recorded net gain of $ 99 million for year ended december 31 , 2006 included in other income ( expense ) in company 2019s consolidated statements of operations.
december 2006 , sprint nextel derivative terminated settled in cash 37. 6 million shares sprint nextel converted to common shares sold.
 company received aggregate cash proceeds of approximately $ 820 million from settlement sprint nextel derivative subsequent sale of 37. 6 million sprint nextel shares.
 company recognized loss of $ 126 million in connection with sale of remaining shares sprint nextel common stock.
 company recorded net gain of $ 99 million with sprint nextel derivative.
 prior to merger of sprint corporation ( 201csprint 201d ) and nextel communications , inc.
 ( 201cnextel 201d ) company entered variable share forward purchase agreements ( 201cvariable forwards 201d ) to hedge nextel common stock.
 company did not designate variable forwards as hedge of sprint nextel shares received result merger.
 company recorded $ 51 million of gains for year ended december 31 , 2005 reflecting change in value of variable forwards.
 variable forwards settled during fourth quarter of 2005.
 fair value of financial instruments company 2019s financial instruments include cash equivalents , sigma fund investments , short-term investments , accounts receivable, long-term finance receivables , accounts payable  accrued liabilities  derivatives other financing commitments.
 company 2019s sigma fund investment portfolios derivatives recorded in company 2019s consolidated balance sheets at fair value.
 all other financial instruments , with exception of long-term debt , carried at cost  not materially different than instruments 2019 fair values.

| 2007       | 2006       | 2005
----------------------------------- | ---------- | ---------- | --------------
balance at january 1                | $ 16       | $ 2        | $ -272 ( 272 )
increase ( decrease ) in fair value | -6 ( 6 )   | 75         | 28
reclassifications to earnings       | -10 ( 10 ) | -61 ( 61 ) | 246
balance at december 31              | $ 2014     | $ 16       | $ 2


prior to adoption of sfas no.
 123 ( r )  company recorded compensation expense for restricted stock awards straight-line basis over vesting period.
 if employee forfeited award prior to vesting company reversed previously expensed amounts in period of forfeiture.
 required upon adoption of sfas no.
 123 ( r )  company must base accruals of compensation expense on estimated number of awards for requisite service period expected rendered.
 actual forfeitures no longer recorded in period of forfeiture.
 in 2005  company recorded pre-tax credit of $ 2. 8 million in cumulative effect of accounting change represents amount compensation expense reduced in periods prior to adoption of sfas no.
 123 ( r ) for restricted stock awards outstanding on july 1, 2005 anticipated to be forfeited.
 summary of non-vested restricted stock award and stock unit activity presented below : shares ( in thousands ) weighted- average date fair.
 as of december 31 , 2007  $ 15. 3 million of total unrecognized compensation cost related to non-vested awards.
 cost expected to be recognized over period of 1. 6 years.
 total fair value of restricted shares and restricted stock units vested was $ 11. 0 million , $ 7. 5 million and $ 4. 1 million for years ended december 31 , 2007 , 2006 2005 .
 employee stock purchase plan shareholders approved 2002 employee stock purchase plan ( reserved 5000000 shares of common stock for sale to employees at price no less than 85% ( 85 % ) of lower fair market value of common stock at beginning of one-year offering period or end of six-month purchase periods.
 under sfas no.
 123 ( r )  2002 purchase plan considered compensatory.
effective august 1 , 2005  company changed terms purchase plan to reduce discount to 5% ( ) discontinued look-back provision.
 purchase plan not compensatory beginning august 1 , 2005.
 for year ended december 31 , 2005 company recorded $ 0. 4 million in compensation expense for employee stock purchase plan for period 2002 plan considered compensatory until terms changed august 1 , 2005.
 at december 31 , 2007  757123 shares available for purchase under 2002 purchase plan.
 401 ( k ) plan company has 401 ( k ) salary deferral program for eligible employees met certain service requirements.
 company matches certain employee contributions ; additional contributions plan at discretion of company.
 total contribution expense under plan was $ 5. 7 million , $ 5. 7 million and $ 5. 2 million for years ended december 31 , 2007 , 2006 and 2005  respectively.

| shares ( in thousands ) | weighted- average grant date fair value
------------------------------- | ----------------------- | ---------------------------------------
non-vested at december 31 2006: | 2878                    | $ 13.01
issued                          | 830                     | $ 22.85
released ( vested )             | -514 ( 514 )            | $ 15.93
canceled                        | -1197 ( 1197 )          | $ 13.75
non-vested at december 31 2007: | 1997                    | $ 15.91


growth focused.
 december 2005 3m announced intention to build lcd optical film manufacturing facility in poland support fast-growing lcd-tv market europe better serve customers.
 company expects 2006 capital expenditures to total approximately $ 1. 1 billion  compared with $ 943 million in 2005.
 third quarter of 2005 3m completed acquisition of cuno.
 3m acquired cuno for approximately $ 1. 36 billion  including assumption of debt.
 $ 1. 36 billion included $ 1. 27 billion cash paid ( net of cash acquired ) assumption of $ 80 million debt  most repaid.
 2005 company entered two additional business combinations for total purchase price of $ 27 million.
 refer to note 2 consolidated financial statements for more information 2005 business combinations information 2004 and 2003 business combinations.
 purchases investments in 2005 include purchase from ti&m beteiligungsgesellschaft mbh of 19 percent of i&t innovation technology ( transportation business segment ).
 purchase price of approximately $ 55 million reported as 201cinvestments 201d in consolidated balance sheet 201cpurchases of investments 201d in consolidated statement of cash flows.
 other 201cpurchases of investments 201d 201cproceeds from sale investments 201d in 2005 primarily attributable to auction rate securities classified as available-for-sale.
 prior to 2005 purchases of proceeds from sale of auction rate securities classified as cash and cash equivalents.
 at december 31 , 2004 amount such securities immaterial to cash and cash equivalents not reclassified for 2004 prior.
 proceeds from sale of investments in 2003 include $ 26 million cash received related to sale of 3m 2019s 50% ( % ) ownership in durel corporation to rogers corporation.
 additional purchases of investments totaled $ 5 million in 2005 , $ 10 million in 2004 $ 16 million in 2003.
 purchases include additional survivor benefit insurance equity investments.
 company considering additional acquisitions investments strategic alliances.
 cash flows from financing activities years ended december 31.
 total debt at december 31  2005 was $ 2. 381 billion  down from $ 2. 821 billion at year-end 2004 decrease attributable to retirement of $ 400 million in medium-term notes.
 no new long- term debt issuances in 2005.
 cash flow decrease in net short-term debt of $ 258 million includes portion short-term debt with original maturities of 90 days or less.
 repayment of debt of $ 656 million related to retirement of $ 400 million in medium-term notes commercial paper retirements.
 proceeds from debt of $ 429 million related to commercial paper issuances.
 total debt was 19% ( 19 % ) of total capital debt plus equity compared with 21% ( 21 % ) at year-end 2004.
 debt securities including company 2019s shelf registration medium-term notes program dealer remarketable securities convertible note discussed in in note 8 to consolidated financial statements.
 3m has shelf registration medium-term notes program through $ 1. 5 billion of medium- term notes offered.
 in 2004 company issued approximately $ 62 million in debt securities under medium-term notes program.
 no debt issued under program in 2005.
 medium-term notes program shelf registration have remaining capacity of approximately $ 1. 438 billion.
 company $ 350 million of dealer remarketable securities current portion of long-term debt remarketed for one year in december 2005.
 company has convertible notes with book value of $ 539 million at december 31 , 2005.
 next put option date for convertible notes is november 2007 at year-end 2005 debt

( millions )                                           | 2005             | 2004             | 2003
------------------------------------------------------ | ---------------- | ---------------- | ----------------
change in short-term debt 2014 net                     | $ -258 ( 258 )   | $ 399            | $ -215 ( 215 )
repayment of debt ( maturities greater than 90 days )  | -656 ( 656 )     | -868 ( 868 )     | -719 ( 719 )
proceeds from debt ( maturities greater than 90 days ) | 429              | 358              | 494
total change in debt                                   | $ -485 ( 485 )   | $ -111 ( 111 )   | $ -440 ( 440 )
purchases of treasury stock                            | -2377 ( 2377 )   | -1791 ( 1791 )   | -685 ( 685 )
reissuances of treasury stock                          | 545              | 508              | 555
dividends paid to stockholders                         | -1286 ( 1286 )   | -1125 ( 1125 )   | -1034 ( 1034 )
distributions to minority interests and other 2014 net | -76 ( 76 )       | -15 ( 15 )       | -23 ( 23 )
net cash used in financing activities                  | $ -3679 ( 3679 ) | $ -2534 ( 2534 ) | $ -1627 ( 1627 )


expected to begin late-2018  after necessary information technology infrastructure in place.
 entergy louisiana proposed to recover cost of ami through implementation customer charge  net certain benefits phased in over period 2019 through 2022.
 parties reached uncontested stipulation permitting implementation entergy louisiana 2019s proposed ami system with modifications to proposed customer charge.
 in july 2017 lpsc approved stipulation.
 entergy louisiana expects to recover undepreciated balance of existing meters through regulatory asset at current depreciation rates.
 sources of capital entergy louisiana 2019s sources meet capital requirements include : 2022 internally generated funds ; 2022 cash on hand ; 2022 debt or preferred membership interest issuances ; 2022 bank financing under new or existing facilities.
 entergy louisiana may refinance  redeem or retire debt prior to maturity market conditions and interest rates favorable.
 all debt common and preferred membership interest issuances require prior regulatory approval.
 preferred membership interest debt issuances subject to issuance tests in bond indentures other agreements.
 entergy louisiana has sufficient capacity under these tests to meet foreseeable capital needs.
 entergy louisiana 2019s receivables from money pool as follows as of december 31 for each following years.
 see note 4 to financial statements for description money pool.
 entergy louisiana has credit facility amount $ 350 million scheduled to expire august 2022.
 credit facility allows entergy to issue letters of credit against $ 15 million of borrowing capacity facility.
 as of december 31 , 2017 no cash borrowings $ 9. 1 million letter of credit outstanding under credit facility.
 entergy louisiana party to uncommitted letter of credit facility as means to post collateral to support obligations to miso. as of december 31 , 2017 , $ 29.7 million letter of credit outstanding under entergy louisiana 2019s uncommitted letter credit a0facility.
 see note 4 financial statements additional discussion credit facilities.
 entergy louisiana nuclear fuel company variable interest entities have two separate credit facilities one $ 105 million and one $ 85 million both scheduled to expire may 2019.
 as of december 31 , 2017 , $ 65. 7 million loans outstanding under credit facility entergy louisiana river bend nuclear fuel company variable interest entity.
 as of december 31, 2017  $ 43. 5 million letters of credit support like commercial paper issued $ 36. 4 million loans outstanding under entergy louisiana waterford nuclear fuel company variable interest entity credit facility.
 see note 4 financial statements for additional discussion nuclear fuel company variable interest entity credit facilities.
 entergy louisiana , llc subsidiaries management 2019s financial discussion analysis

2017             | 2016             | 2015             | 2014
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 11173          | $ 22503          | $ 6154           | $ 2815


refining and wholesale marketing gross margin is difference between prices of refined products sold and costs of crude oil and other charge blendstocks refined including costs to transport inputs to refineries costs of purchased products manufacturing expenses  including depreciation.
 crack spread is a measure of difference between market prices for refined products and crude oil used as proxy for refining margin.
 crack spreads can fluctuate significantly particularly when prices refined products not move in same relationship as cost of crude oil.
 as performance benchmark comparison with industry participants we calculate midwest ( chicago ).
 gulf coast crack spreads closely track our operations slate products.
 posted light louisiana sweet ( 201clls 201d ) prices 6-3-2-1 ratio of products ( 6 barrels of crude oil producing 3 barrels of gasoline 2 barrels of distillate 1 barrel of residual fuel ) are used for crack spread calculation.
 refineries process significant amounts of sour crude oil typically purchased at discount to sweet crude oil.
 amount of discount  sweet/sour differential  can vary significantly causing refining and wholesale marketing gross margin to differ from crack spreads based upon sweet crude.
 larger sweet/sour differential will enhance refining and wholesale marketing gross margin.
 in 2009  sweet/sour differential narrowed due to worldwide economic petroleum industry related factors primarily to lower hydrocarbon demand.
 sour crude accounted for 50 percent , 52 percent 54 percent of our crude oil processed in 2009 , 2008 2007.
 following table lists calculated average crack spreads for midwest ( chicago ) gulf coast markets and sweet/sour differential for past three years.
 ( dollars per barrel ) 2009 2008 2007.
 sweet/sour differential ( a ) $ 5.82 $ 11. 99 $ 11. 59 ( a ) calculated using mix of crude types compared to lls. : 15% ( 15 % ) arab light , 20% ( 20 % ) kuwait , 10% ( 10 % ) maya , 15% ( 15 % ) western canadian select , 40% ( 40 % ) mars.
 in addition to market changes crack spreads sweet/sour differential , refining and wholesale marketing gross margin impacted by factors : 2022 types of crude oil other charge and blendstocks processed  2022 selling prices for refined products  2022 impact of commodity derivative instruments to manage price risk  2022 cost of products purchased for resale  2022 changes in manufacturing costs  include depreciation.
 manufacturing costs driven by cost of energy refineries maintenance costs.
 planned turnaround and major maintenance activities completed at catlettsburg , garyville , robinson refineries in 2009.
 performed turnaround major maintenance activities at robinson garyville canton refineries in 2008 and catlettsburg robinson st.
 paul park refineries in 2007.
 retail marketing gross margin for gasoline and distillates , difference between ultimate price paid by consumers and cost of refined products  including secondary transportation consumer excise taxes  impacts rm&t segment profitability.
 numerous factors including local competition , seasonal demand fluctuations  available wholesale supply  level economic activity in marketing areas weather conditions impact gasoline and distillate demand year.
 refined product demand increased for several years until 2008 decreased due to significant increases in retail petroleum prices  broad slowdown in economic activity impact of increased ethanol blending into gasoline.
 in 2009 refined product demand continued to decline.
marketing area, estimate gasoline demand decline about one percent distillate demand decline 12 percent from 2008 levels.
 market demand declines for gasoline and distillates generally reduce product margin can realize.
 also estimate gasoline and distillate demand in marketing area decreased three percent in 2008 compared to 2007 levels.
 gross margin on merchandise sold at retail outlets historically less volatile.

( dollars per barrel )        | 2009   | 2008    | 2007
----------------------------- | ------ | ------- | -------
chicago lls 6-3-2-1           | $ 3.52 | $ 3.27  | $ 8.87
u.s . gulf coast lls 6-3-2-1  | $ 2.54 | $ 2.45  | $ 6.42
sweet/sour differential ( a ) | $ 5.82 | $ 11.99 | $ 11.59


december 19 , 2011 , redeemed remaining $ 175 million of 6. 5% ( 6. 5 % ) notes due april 15 , 2012 , all $ 300 million of outstanding 6. 125% ( 6. 125 % ) notes due january 15 , 2012.
 redemptions resulted in early extinguishment charge of $ 5 million in fourth quarter of 2011.
 receivables securitization facility 2013 as of december 31 , 2013 and 2012 , recorded $ 0 and $ 100 million , respectively, as secured debt under receivables securitization facility.
 ( see further discussion of receivables securitization facility in note 10 ).
 15.
 variable interest entities entered into various lease transactions structure leases contain variable interest entities ( vies ).
 vies created solely for purpose of doing lease transactions ( principally involving railroad equipment and facilities , including headquarters building ) have no other activities , assets or liabilities outside of lease transactions.
 within lease arrangements , right to purchase some or all assets at fixed prices.
 depending on market conditions , fixed-price purchase options in leases could potentially provide benefits to us ; benefits not expected to be significant.
 maintain and operate assets based on contractual obligations within lease arrangements , set specific guidelines consistent within railroad industry.
 no control over activities could materially impact fair value of leased assets.
 do not hold power to direct activities of vies do not control ongoing activities significant impact on economic performance of vies.
 do not have obligation to absorb losses of vies or right to receive benefits of vies could potentially be significant to not considered to be primary beneficiary do not consolidate these vies because our actions and decisions do not have most significant effect on vie 2019s performance fixed-price purchase price options not considered to potentially significant to vies.
future minimum lease payments vie leases totaled $ 3. 3 billion as of december 31 , 2013.
 16.
 leases lease locomotives  freight cars other property.
 consolidated statements of financial position as of december 31 , 2013 and 2012 included $ 2486 million  net of $ 1092 million accumulated depreciation and $ 2467 million  net of $ 966 million accumulated depreciation for properties under capital leases.
 charge to income from depreciation for assets capital leases included within depreciation expense in consolidated statements income.
 future minimum lease payments for operating and capital leases with initial non-cancelable lease terms excess of one year as of december 31, 2013 were : millions operating leases capital leases.
 approximately 94% ( 94 % ) of capital lease payments relate to locomotives.
 rent expense for operating leases with terms exceeding one month was $ 618 million in 2013 $ 631 million in 2012  $ 637 million in 2011.
 cash rental payments not straight-line recognize variable rental expense straight-line over lease term.
 contingent rentals sub-rentals not significant.

millions                               | operatingleases | capitalleases
-------------------------------------- | --------------- | -------------
2014                                   | $ 512           | $ 272
2015                                   | 477             | 260
2016                                   | 438             | 239
2017                                   | 400             | 247
2018                                   | 332             | 225
later years                            | 1907            | 957
total minimum leasepayments            | $ 4066          | $ 2200
amount representing interest           | n/a             | -498 ( 498 )
present value of minimum leasepayments | n/a             | $ 1702


part iii item 10.
 directors  executive officers corporate governance information required by item 10  other than information executive officers at end of part i , item 1 report see 201celection of directors , 201d 201cnominees for election to board of directors  201d 201ccorporate governance 201d 201csection 16 ( a ) beneficial ownership reporting compliance , 201d proxy statement for 2016 annual meeting  information incorporated herein by reference.
 proxy statement 2016 annual meeting filed within 120 days of close of year.
 information required by item 10 executive officers see part i , item 1.
 report.
 item 11.
 executive compensation information required item 11 see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d 201cexecutive compensation 201d proxy statement for 2016 annual meeting  information incorporated herein by reference.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters information required by item 12 beneficial ownership of common stock see 201csecurity ownership of certain beneficial owners management 201d in proxy statement for 2016 annual meeting information incorporated herein by reference.
 following table sets information as of december 31 , 2015 equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants rights weighted-average exercise price of outstanding options , warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1442912 $ 86. 98 4446967 item 13.
certain relationships related transactions , director independence for information required by item 13 , see 201ccertain transactions 201d 201ccorporate governance 201d in proxy statement for 2016 annual meeting  information incorporated herein by reference.
 item 14.
 principal accounting fees services information required by item 14  see 201caudit non-audit fees 201d 201caudit committee pre-approval procedures 201d in proxy statement for 2016 annual meeting  information incorporated by reference.
 part iii item 10.
 directors , executive officers corporate governance for information required by item 10 other than information executive officers end of part i , item 1 of report , see 201celection of directors, 201d 201cnominees for election to board of directors , 201d 201ccorporate governance 201d 201csection 16 ( a ) beneficial ownership reporting compliance , 201d in proxy statement for 2016 annual meeting , information incorporated herein by reference.
 proxy statement for 2016 annual meeting filed within 120 days of close of year.
 for information required by item 10 executive officers , see part i , item 1.
 of report.
 item 11.
 executive compensation for information required by item 11  see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d 201cexecutive compensation 201d in proxy statement for 2016 annual meeting , information incorporated herein by reference.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters for information required by item 12 beneficial ownership of common stock , see 201csecurity ownership of certain beneficial owners management 201d in proxy statement for 2016 annual meeting , information incorporated herein by reference.
table sets information as of december 31 , 2015 regarding equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants rights weighted-average exercise price of outstanding options  warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1442912 $ 86. 98 4446967 item 13.
 certain relationships related transactions  director independence for information item 13 see 201ccertain transactions 201d and 201ccorporate governance 201d in proxy statement for 2016 annual meeting , information reference.
 item 14.
 principal accounting fees and services for information item 14 see 201caudit and non-audit fees 201d and 201caudit committee pre-approval procedures 201d in proxy statement for 2016 annual meeting ,.

plan category                                          | number of securitiesto be issued uponexercise ofoutstanding options warrants and rights ( a ) ( b ) | weighted-averageexercise price ofoutstanding options warrants and rights | number of securitiesremaining available forfuture issuance underequity compensationplans ( excludingsecurities reflected in column ( a ) ) ( c )
------------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 1442912                                                                                | $ 86.98                                                                  | 4446967


supplies.
 expenses for purchased services increased 10% ( 10 % ) compared to 2012 due to logistics management fees increase in locomotive overhauls repairs on jointly owned property.
 expenses for contract services increased $ 103 million in 2012 versus 2011 primarily due to increased demand for transportation services purchased by logistics subsidiaries additional costs for repair maintenance of locomotives freight cars.
 depreciation 2013 majority of depreciation relates to road property  including rail  ties ballast other track material.
 depreciation up 1% ( 1 % ) compared to 2012.
 recent depreciation studies allowed longer estimated service lives for certain equipment partially offset impact of higher depreciable asset base from larger capital spending.
 higher depreciable asset base  ongoing capital spending increased depreciation expense in 2012 compared to 2011.
 equipment and other rents 2013 equipment rents expense includes rental expense railroad pays for freight cars owned by other railroads private companies ; freight car  intermodal locomotive leases office other rent expenses.
 additional container costs from logistics management arrangement increased automotive shipments offset by lower cycle times drove $ 51 million increase in short-term freight car rental expense versus 2012.
 lower locomotive freight car lease expenses offset higher freight car rental expense.
 increased automotive intermodal shipments offset by improved car-cycle times drove increase in short-term freight car rental expense in 2012 compared to 2011.
 lower locomotive lease expense offset higher freight car rental expense.
2013 expenses include state local taxes freight equipment property damage utilities insurance personal injury environmental employee travel telephone cellular  computer software bad debt general expenses.
 higher property taxes costs damaged freight property increased other costs in 2013 compared to 2012.
 improvement in safety performance lower estimated liability for personal injury reduced personal injury expense year-over-year partially offset increases in other costs.
 other costs 2012 slightly higher than 2011 due to higher property taxes.
 despite improvement safety experience lower estimated annual costs personal injury expense increased in 2012 compared to 2011 liability reduction from historical claim experience less than reduction in 2011.
 non-operating items millions 2013 2012 2011 % ( % ) change v 2012 change 2012 v 2011.
 other income 2013 increased 2013 versus 2012 due to higher gains from real estate sales increased lease income favorable impact from $ 17 million settlement of land lease contract.
 increases partially offset by interest from tax refund in 2012.
 other income decreased 2012 versus 2011 due to lower gains from real estate sales higher environmental costs non-operating properties partially offset by interest from tax refund.
 interest expense 2013 decreased 2013 versus 2012 due to lower effective interest rate of 5. 7% ( 5. 7 % ) in 2013 versus 6. 0% ( 6. 0 % ) in 2012.
 increase in weighted-average debt level to $ 9. 6 billion in 2013 from $ 9. 1 billion in 2012 partially offset impact of lower effective interest rate.
 interest expense decreased in 2012 versus 2011 reflecting lower effective interest rate 2012 of 6. 0% ( 6. 0 % ) versus 6. 2% ( 6. 2 % ) in 2011 debt level not change from 2011 to 2012.

millions         | 2013           | 2012           | 2011           | % (  % ) change 2013 v 2012 | % (  % ) change 2012 v 2011
---------------- | -------------- | -------------- | -------------- | --------------------------- | ---------------------------
other income     | $ 128          | $ 108          | $ 112          | 19 % (  % )                 | ( 4 ) % (  % )
interest expense | -526 ( 526 )   | -535 ( 535 )   | -572 ( 572 )   | -2 ( 2 )                    | -6 ( 6 )
income taxes     | -2660 ( 2660 ) | -2375 ( 2375 ) | -1972 ( 1972 ) | 12 % (  % )                 | 20 % (  % )


comparison of cumulative return among lkq corporation , nasdaq stock market ( u. s. ) index peer group.
 this stock performance information is "furnished" not deemed "soliciting material" or subject to rule 14a , not deemed "filed" for purposes section 18 securities exchange act of 1934 or subject to liabilities that section , not deemed incorporated by reference in any filing under securities act of 1933 or securities exchange act of 1934 , made before or after date of this report irrespective of general incorporation by reference language in filing , except extent it specifically incorporates information by reference.
 information about our common stock issued under equity compensation plans as of december 31, 2012 included in part iii , item 12 of annual report on form 10-k incorporated herein by reference.

| 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012
---------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
lkq corporation                    | $ 100      | $ 55       | $ 93       | $ 108      | $ 143      | $ 201
nasdaq stock market ( u.s. ) index | $ 100      | $ 59       | $ 86       | $ 100      | $ 98       | $ 114
peer group                         | $ 100      | $ 83       | $ 100      | $ 139      | $ 187      | $ 210


under terms ansys , inc.
 long-term incentive plan , in first quarter of 2012 , 2011 2010  company granted 100000 , 92500 80500 performance-based restricted stock units ,.
 vesting of full award or portion based on company 2019s performance as measured by total shareholder return relative to median percentage appreciation of nasdaq composite index over specified measurement period  subject to each participant 2019s continued employment company through conclusion of measurement period.
 measurement period for restricted stock units granted long incentive plan is three-year period beginning january 1 of year of grant.
 each restricted stock unit relates to one share of company 2019s common stock.
 value of each restricted stock unit granted in 2012 , 2011 2010 estimated on grant date to be $ 33. 16 , $ 32. 05 and $ 25. 00 ,.
 estimate of grant-date value of restricted stock units made using monte carlo simulation model.
 determination of fair value of awards affected by grant date and number of variables identified in chart below.
 share-based compensation expense based on fair value of award recorded from grant date through conclusion of three-year measurement period.
 on december 31 , 2012  employees earned 76500 restricted stock units  issued in first quarter of 2013.
 total compensation expense associated with awards recorded for years ended december 31 , 2012 , 2011 2010 was $ 2. 6 million , $ 1. 6 million and $ 590000 ,.
 total compensation expense associated with awards granted for years ending december 31 , 2013 and 2014 expected to be $ 2. 2 million and $ 1. 2 million , respectively.
merger agreement company granted performance-based restricted stock units to key members apache management and employees maximum value of $ 13. 0 million earned annually over three-fiscal-year period beginning january 1 , 2012.
 additional details awards provided within note 3.
 14.
 stock repurchase program in february 2012  ansys announced board of directors approved increase to authorized stock repurchase program.
 program ansys repurchased 1. 5 million shares during year ended december 31, 2012 at average price per share of $ 63. 65 , for total cost of $ 95. 5 million.
 during year ended december 31, 2011  company repurchased 247443 shares at average price per share of $ 51. 34 , for total cost of $ 12. 7 million.
 as of december 31 , 2012 1. 5 million shares remained authorized for repurchase under program.
 15.
 employee stock purchase plan company 2019s 1996 employee stock purchase plan ( 201cpurchase plan 201d ) adopted by board of directors on april 19 , 1996 approved by company 2019s stockholders.
 stockholders approved amendment to purchase plan on may 6 , 2004 to increase number of shares available for offerings to 1. 6 million shares.
 purchase plan amended and restated in 2007.
 purchase plan administered by compensation committee.
 offerings purchase plan commence each february 1 and august 1 duration of six months.
 employee owns or deemed own shares of stock representing in excess of 5% ( 5 % ) of combined voting power of all classes of stock company may not participate in purchase plan.
 during each offering eligible employee may purchase shares under purchase plan by authorizing payroll deductions of up to 10% ( 10 % ) of cash compensation during offering period.
maximum number of shares purchased by participating employee during offering period limited to 3840 shares ( adjusted by compensation committee ).
 unless employee withdrawn from offering his accumulated payroll deductions used to purchase common stock on last business day of period at price equal to 90% ( % ) of fair market value of common stock on first or last day of offering period , whichever is lower.
 under applicable tax rules employee may purchase no more than $ 25000 common stock in any calendar year.
 at december 31 , 2012 , 1233385 shares of common stock issued under purchase plan  of 1184082 were issued as of december 31 , 2011.
 total compensation expense recorded under purchase plan during years ended december 31 , 2012 , 2011 and 2010 was $ 710000 , $ 650000 and $ 500000 , respectively.
 table of contents

assumption used in monte carlo lattice pricing model | year ended december 31 , 2012 | year ended december 31 , 2011 and 2010
---------------------------------------------------- | ----------------------------- | --------------------------------------
risk-free interest rate                              | 0.16% ( 0.16 % )              | 1.35% ( 1.35 % )
expected dividend yield                              | 0% ( 0 % )                    | 0% ( 0 % )
expected volatility 2014ansys stock price            | 28% ( 28 % )                  | 40% ( 40 % )
expected volatility 2014nasdaq composite index       | 20% ( 20 % )                  | 25% ( 25 % )
expected term                                        | 2.80                          | 2.90
correlation factor                                   | 0.75                          | 0.70


part i item 1 entergy corporation , utility operating companies  system energy entergy new orleans provides electric and gas service in city of new orleans indeterminate permits in city ordinances ( except electric service in algiers provided by entergy louisiana ).
 ordinances contain continuing option for city of new orleans to purchase entergy new orleans 2019s electric and gas utility properties.
 entergy texas holds certificate of convenience and necessity from puct to provide electric service to areas within approximately 27 counties in eastern texas holds non-exclusive franchises provide electric service in 68 municipalities.
 entergy texas typically granted 50-year franchises recently receiving 25-year franchises.
 entergy texas 2019s electric franchises expire during 2013-2058.
 business of system energy limited to wholesale power sales.
 no distribution franchises.
 property other generation resources generating stations total capability of generating stations owned and leased by utility operating companies system energy as of december 31, 2011 is indicated below:.
 ( 1 ) 201cowned and leased capability 201d is dependable load carrying capability demonstrated under actual operating conditions based on primary fuel ( no curtailments ) each station designed utilize.
 entergy system's load and capacity projections reviewed periodically to assess need timing for additional generating capacity interconnections.
 reviews consider existing projected demand  availability price of power location of new load economy.
 summer peak load in entergy system service territory averaged 21246 mw from 2002-2011.
 in 2002 time period entergy system's long-term capacity resources for adequate reserve margin were approximately 3000 mw less than total capacity required for peak period demands.
 entergy system met capacity shortages through short-term power purchases in wholesale spot market.
fall of 2002 , entergy system began program to add new resources to existing generation portfolio began process issuing requests for proposals ( rfp ) to procure supply-side resources from sources other than spot market meet unique regional needs utility operating companies.
 entergy system adopted long-term resource strategy calls for bulk of capacity needs met through long-term resources , owned or contracted.
 entergy refers to strategy as "portfolio transformation strategy".
 over past nine years  portfolio transformation resulted in addition of about 4500 mw of new long-term resources.
 figures do not include transactions currently pending result summer 2009 rfp.
 summer 2009 rfp transactions included in entergy system portfolio long-term resources adjusting for unit deactivations older generation , entergy system is approximately 500 mw short of projected 2012 peak load plus reserve margin.
 remaining need expected to be met through nuclear uprate at grand gulf and limited-term resources.
 entergy system will continue to access spot power market to economically

company                       | owned and leased capability mw ( 1 ) total | owned and leased capability mw ( 1 ) gas/oil | owned and leased capability mw ( 1 ) nuclear | owned and leased capability mw ( 1 ) coal | owned and leased capability mw ( 1 ) hydro
----------------------------- | ------------------------------------------ | -------------------------------------------- | -------------------------------------------- | ----------------------------------------- | ------------------------------------------
entergy arkansas              | 4774                                       | 1668                                         | 1823                                         | 1209                                      | 74
entergy gulf states louisiana | 3317                                       | 1980                                         | 974                                          | 363                                       | -
entergy louisiana             | 5424                                       | 4265                                         | 1159                                         | -                                         | -
entergy mississippi           | 3229                                       | 2809                                         | -                                            | 420                                       | -
entergy new orleans           | 764                                        | 764                                          | -                                            | -                                         | -
entergy texas                 | 2538                                       | 2269                                         | -                                            | 269                                       | -
system energy                 | 1071                                       | -                                            | 1071                                         | -                                         | -
total                         | 21117                                      | 13755                                        | 5027                                         | 2261                                      | 74


notes to consolidated financial statements uncertain tax provisions described in note 1 company adopted fin 48 on january 1 , 2007.
 effect adopting fin 48 not material to company 2019s financial statements.
 following reconciliation of company 2019s beginning and ending amount unrecognized tax benefits ( in millions ).
 amount included previous table $ 57 million unrecognized tax benefits impact effective tax rate if recognized.
 aon not expect unrecognized tax positions to change significantly over next twelve months.
 company recognizes interest and penalties related to unrecognized income tax benefits in provision for income taxes.
 aon accrued potential penalties and interest of less than $ 1 million related to unrecognized tax positions during 2007.
 total as of december 31, 2007 aon recorded liability for penalties and interest of $ 1 million and $ 7 million respectively.
 aon subsidiaries file income tax returns in.
 federal jurisdiction various state and international jurisdictions.
 aon concluded all.
 federal income tax matters for years through 2004.
 internal revenue service commenced examination of aon 2019s federal.
 income tax returns for 2005 and 2006 fourth quarter of 2007.
.
 state and local income tax jurisdiction examinations concluded for years through 2002.
 aon concluded income tax examinations in primary international jurisdictions through 2000.
 corporation

balance at january 1 2007                                    | $ 53
------------------------------------------------------------ | --------
additions based on tax positions related to the current year | 4
additions for tax positions of prior years                   | 24
reductions for tax positions of prior years                  | -6 ( 6 )
settlements                                                  | -5 ( 5 )
balance at december 31 2007                                  | $ 70


incentive compensation cost table shows components compensation expense to incentive compensation programs : a0millions a0dollars 2018 2017 2016 charges for estimated awards to retirement-eligible employees $ 669 $ 659 $ 555 amortization of deferred cash awards stock units performance stock units 202 354 336 immediately vested stock award expense ( 1 ) 75 70 73 amortization of restricted deferred stock awards 2 ) 435 474 509.
 1 ) represents expense for immediately vested stock awards stock payments in lieu cash compensation.
 expense generally accrued as cash incentive compensation year prior to grant.
 2 ) all periods include amortization expense for unvested awards to non-retirement-eligible employees.

in millions of dollars                                                                     | 2018   | 2017   | 2016
------------------------------------------------------------------------------------------ | ------ | ------ | ------
charges for estimated awards to retirement-eligible employees                              | $ 669  | $ 659  | $ 555
amortization of deferred cash awards deferred cash stock units and performance stock units | 202    | 354    | 336
immediately vested stock award expense ( 1 )                                               | 75     | 70     | 73
amortization of restricted and deferred stock awards ( 2 )                                 | 435    | 474    | 509
other variable incentive compensation                                                      | 640    | 694    | 710
total                                                                                | $ 2021 | $ 2251 | $ 2183


begin production in early 2012.
 output from first line contracted for sale under long-term agreement.
 in march 2011 entered joint venture agreement with thai beverage can limited to construct beverage container manufacturing facility in vietnam begin production first quarter of 2012.
 made recent strategic acquisitions.
 october 2011  acquired partners 2019 interests in qmcp recorded gain of $ 9. 2 million related to previously held interest in joint venture.
 constructing new expanded beverage container facility for qmcp begin production first quarter of 2012.
 july 2010  entered aluminum slug market by acquiring leading north american manufacturer of aluminum slugs used to make extruded aerosol containers , beverage bottles  collapsible tubes technical impact extrusions.
 to expand new product line broaden market development efforts into new customer base in january 2011  acquired leading european supplier of aluminum aerosol containers and bottles and slugs used to make them.
 further details of recent acquisitions included in note 3 to consolidated financial statements within item 8 of report.
 recognize sales under long-term contracts in aerospace and technologies segment using percentage of completion under cost-to-cost method of accounting.
 2011 contract mix consisted of approximately 60 percent cost-type contracts billed at our costs plus agreed upon and/or earned profit component 33 percent fixed-price contracts.
 remainder represents time and material contracts typically for sale of engineering labor at fixed hourly rates.
 contracted backlog at december 31 , 2011 of approximately $ 897 million consisted of approximately 50 percent fixed price contracts continuing trend towards more fixed price business.
 throughout period contract performance regularly reevaluate and if necessary revise estimates of aerospace and technologies total contract revenue , total contract cost and progress toward completion.
contract payment schedules limitations on funding contract terms sales accounts receivable for this segment include amounts earned but not yet billed.
 management performance measures management uses measures to evaluate company performance return on average invested capital ( net operating earnings after tax over relevant performance period divided by average invested capital same period ) ; economic value added ( net operating earnings after tax less capital charge on average invested capital employed ) ; earnings before interest and taxes ( ebit ) ; earnings before interest  taxes depreciation amortization ( ebitda ) diluted earnings per share ; cash flow from operating activities free cash flow ( defined as cash flow from operating activities less additions to property  plant equipment ).
 financial measures may be adjusted for items affect comparability between periods business consolidation costs gains or losses on acquisitions dispositions.
 nonfinancial measures in packaging businesses include production efficiency spoilage rates ; quality control figures ; environmental  health and safety statistics production sales volumes ; asset utilization rates measures of sustainability.
 additional measures evaluate financial performance in aerospace and technologies segment include contract revenue realization  award incentive fees realized proposal win rates backlog ( including awarded funded backlog ).
 results of operations consolidated sales and earnings.
 increase in net sales in 2011 compared to 2010 driven by increase in demand for metal packaging in prc improved beverage container volumes in americas consolidation of latapack-ball  acquisition of two prc joint ventures extruded aluminum businesses improved aerospace program performance.
 business segment performance net earnings attributable to ball corporation included discontinued operations related to sale of plastics business in august 2010 business consolidation costs debt refinancing costs equity earnings and gains on acquisitions.
items detailed in 201cmanagement performance measures 201d section below.
 higher sales in 2010 compared to due to sales associated with 2010 business acquisitions described.
 higher net earnings from continuing operations in 2010 included $ 105. 9 million equity gains on acquisitions associated with acquisitions.

( $ in millions )                             | 2011     | 2010     | 2009
--------------------------------------------- | -------- | -------- | --------
net sales                                     | $ 8630.9 | $ 7630.0 | $ 6710.4
net earnings attributable to ball corporation | 444.0    | 468.0    | 387.9


american airlines , inc.
 notes to consolidated financial statements 2014 continued temporary targeted funding relief ( subject to certain terms and conditions ) for single employer and multiemployer pension plans suffered significant losses in asset value due to steep market slide in 2008.
 under relief act company 2019s 2010 minimum required contribution to defined benefit pension plans reduced from $ 525 million to approximately $ 460 million.
 following benefit payments  reflect expected future service expected to be paid : retiree medical pension and other.
 during 2008  amr recorded settlement charge totaling $ 103 million related to lump sum distributions from company 2019s defined benefit pension plans to pilots who retired.
.
 use of settlement accounting required if for year cost of all settlements exceeds or expected to exceed sum of service cost and interest cost components of net periodic pension expense for plan.
 under settlement accounting unrecognized plan gains or losses must be recognized immediately in proportion to percentage reduction of plan 2019s projected benefit obligation.
.
 intangible assets company recorded international slot and route authorities of $ 708 million and $ 736 million as of december 31 , 2010 and 2009  respectively.
 company considers these assets indefinite life assets not amortized but tested for impairment annually or more frequently if events or changes in circumstances indicate asset might be impaired.
 triggering events may include significant changes to company 2019s network or capacity  or implementation of open skies agreements in countries where company operates flights.
 in fourth quarter of 2010  company performed annual impairment testing on international slots and routes net carrying value reassessed for recoverability.
 determined fair value of certain international routes in latin america was less than carrying value.
company incurred impairment charge of $ 28 million to write down values of these certain other slots and routes.
 minimal market activity for valuation of routes and international slots and landing rights , company measures fair value with inputs using income approach.
 income approach uses valuation techniques  future cash flows , to convert future amounts to single present discounted amount.
 inputs utilized for these valuations are unobservable reflect company 2019s assumptions about market participants use to value routes accordingly considered level 3 in fair value hierarchy.
 company 2019s unobservable inputs are developed based on best information available as of december 31

| pension | retiree medical and other
-------------- | ------- | -------------------------
2011           | 574     | 173
2012           | 602     | 170
2013           | 665     | 169
2014           | 729     | 170
2015           | 785     | 173
2016 2014 2020 | 4959    | 989


management 2019s discussion analysis 114 jpmorgan chase & co. /2017 annual report derivative contracts normal course business firm uses derivative instruments for market-making activities.
 derivatives enable counterparties to manage exposures to fluctuations in interest rates currencies other markets.
 firm also uses derivative instruments to manage own credit other market risk exposure.
 nature of counterparty settlement mechanism of derivative affect credit risk to firm exposed.
 for otc derivatives firm exposed to credit risk of derivative counterparty.
 for exchange- traded derivatives ( 201cetd 201d ) futures options 201ccleared 201d over-the-counter ( 201cotc-cleared 201d ) derivatives firm generally exposed to credit risk of relevant ccp.
 possible firm seeks to mitigate credit risk exposures from derivative transactions through use legally enforceable master netting arrangements collateral agreements.
 for further discussion of derivative contracts counterparties settlement types see note 5.
 table summarizes net derivative receivables for periods presented.
 derivative receivables.
 ( a ) includes collateral related to derivative instruments where appropriate legal opinion not sought or obtained.
 derivative receivables reported on consolidated balance sheets were $ 56. 5 billion and $ 64. 1 billion at december 31 , 2017 and 2016 .
 derivative receivables decreased result of client- driven market-making activities in cib markets reduced foreign exchange interest rate derivative receivables increased equity derivative receivables driven by market movements.
 derivative receivables amounts represent fair value of derivative contracts after giving effect to legally enforceable master netting agreements cash collateral held by firm.
in management 2019s view  appropriate measure of current credit risk should consideration additional liquid securities ( primarily u. s.
 government and agency securities group of seven nations ( 201cg7 201d ) government bonds ) and other cash collateral held by firm aggregating $ 16. 1 billion and $ 22. 7 billion at december 31 , 2017 and 2016  respectively may be used as security when fair value of client 2019s exposure is in firm 2019s favor.
 in addition to collateral described firm holds additional collateral ( primarily cash , g7 government securities , other liquid government-agency and guaranteed securities  corporate debt and equity securities ) delivered by clients at initiation transactions  collateral related to contracts non-daily call frequency and collateral firm agreed to return but not yet settled as of reporting date.
 this collateral does not reduce balances not included in table available as security against potential exposure should fair value of client 2019s derivative transactions move in firm 2019s favor.
 derivative receivables fair value , net of all collateral  does not include other credit enhancements  letters of credit.
 for additional information on firm 2019s use of collateral agreements , see note 5.
 useful as current view of credit exposure net fair value of derivative receivables does not capture potential future variability of credit exposure.
 to capture potential future variability credit exposure firm calculates client-by-client basis three measures of potential derivatives-related credit loss : peak , derivative risk equivalent ( 201cdre 201d )  and average exposure ( 201cavg 201d ).
 these measures all incorporate netting and collateral benefits  where applicable.
 peak represents a conservative measure of potential exposure to a counterparty calculated equivalent to a 97. 5% (. 5 % ) confidence level over life of transaction.
 peak is primary measure used by firm for setting credit limits for derivative transactions , senior management reporting derivatives exposure management.
 dre exposure is measure expresses risk of derivative exposure equivalent to risk of loan exposures.
 dre less extreme measure of potential credit loss than peak used for aggregating derivative credit risk exposures with loans other credit risk.
 avg is measure of expected fair value of firm 2019s derivative receivables at future time periods  including benefit of collateral.
 avg exposure over total life of derivative contract used as primary metric for pricing purposes used to calculate credit risk capital and cva .
 three year avg exposure was $ 29. 0 billion and $ 31. 1 billion at december 31 , 2017 and 2016  respectively compared with derivative receivables , net of all collateral , of $ 40. 4 billion and $ 41. 4 billion at december 31 , 2017 and 2016 , respectively.
 fair value of firm 2019s derivative receivables incorporates cva to reflect credit quality of counterparties.
 cva based on firm 2019s avg to counterparty and counterparty 2019s credit spread in credit derivatives market.
 firm believes active risk management is essential to controlling dynamic credit risk in derivatives portfolio.
 firm 2019s risk management process potential

december 31 ( in millions )                                                           | 2017             | 2016
------------------------------------------------------------------------------------- | ---------------- | ----------------
interest rate                                                                         | $ 24673          | $ 28302
credit derivatives                                                                    | 869              | 1294
foreign exchange                                                                      | 16151            | 23271
equity                                                                                | 7882             | 4939
commodity                                                                             | 6948             | 6272
total net of cash collateral                                                          | 56523            | 64078
liquid securities and other cash collateral held against derivative receivables ( a ) | -16108 ( 16108 ) | -22705 ( 22705 )
total net of all collateral                                                           | $ 40415          | $ 41373


management 2019s discussion analysis of financial condition results of operations continued ) funding deposits : we provide products services including custody  accounting administration daily pricing foreign exchange services cash management financial asset management securities finance investment advisory services.
 as provider products services we generate client deposits provided stable low-cost source of funds.
 as global custodian clients place deposits with state street entities in various currencies.
 invest client deposits in combination of investment securities short- duration financial instruments mix determined by characteristics of deposits.
 for past years experienced higher client deposit inflows toward end of quarter or end of year.
 believe average client deposit balances more reflective of ongoing funding than period-end balances.
 table 33 : client deposits average balance december 31 , year ended december 31.
 client deposits ( 1 ) $ 195276 $ 182268 $ 167470 $ 143043 ( balance as of december 31, 2014 excluded term wholesale certificates of deposit  or cds  of $ 13. 76 billion ; average balances for year ended december 31 , 2014 and 2013 excluded average cds of $ 6. 87 billion and $ 2. 50 billion  respectively.
 short-term funding : our corporate commercial paper program can issue up to $ 3. 0 billion of commercial paper with original maturities of up to 270 days from date of issuance had $ 2. 48 billion and $ 1. 82 billion of commercial paper outstanding as of december 31 , 2014 and 2013 respectively.
 on-balance sheet liquid assets integral component of liquidity management strategy.
 assets provide liquidity through maturities assets provide ability to raise funds by pledging securities as collateral for borrowings or through outright sales.
our access to global capital markets us ability to source incremental funding at reasonable rates interest from wholesale investors.
 discussed under 201casset liquidity 201d state street bank's membership in fhlb allows for advances of liquidity with varying terms against high-quality collateral.
 short-term secured funding comes in form of securities lent or sold under agreements to repurchase.
 these transactions are short-term generally overnight collateralized by high-quality investment securities.
 these balances were $ 8. 93 billion and $ 7. 95 billion as of december 31 , 2014 and 2013  respectively.
 state street bank maintains a line of credit with financial institution of cad $ 800 million , or approximately $ 690 million as of december 31 , 2014 to support canadian securities processing operations.
 line of credit has no termination date cancelable by party with prior notice.
 as of december 31 , 2014 no balance outstanding on this line of credit.
 long-term funding : as of december 31  2014 state street bank had board authority to issue unsecured senior debt securities aggregate principal amount of unsecured senior debt outstanding does not exceed $ 5 billion.
 as of december 31 , 2014  $ 4. 1 billion was available for issuance authority.
 of december 31 2014 state street bank had board authority to issue additional $ 500 million of subordinated debt.
 maintain effective universal shelf registration allows for public offering and sale of debt securities , capital securities , common stock  depositary shares and preferred stock  and warrants to purchase such securities including shares preferred stock depositary shares convertible combination.
 issued in past  and may issue in future  securities pursuant to our shelf registration.
issuance of debt or equity securities depend on future market conditions  funding needs other factors.
 agency credit ratings ability to maintain consistent access to liquidity fostered by maintenance high investment-grade ratings measured by major independent credit rating agencies.
 factors essential to maintaining high credit ratings include diverse stable core earnings ; relative market position ; strong risk management ; strong capital ratios diverse liquidity sources including global capital markets client deposits strong liquidity monitoring procedures preparedness for current future regulatory developments.
 high ratings limit borrowing costs enhance liquidity by assurance for unsecured funding and depositors increasing potential market for debt improving ability to offer products serve markets engage in transactions in clients value high credit ratings.
 downgrade or reduction of credit ratings could adverse effect on liquidity by restricting ability to access capital

( in millions )       | december 31 , 2014 | december 31 , 2013 | december 31 , 2014 | 2013
--------------------- | ------------------ | ------------------ | ------------------ | --------
client deposits ( 1 ) | $ 195276           | $ 182268           | $ 167470           | $ 143043