morgan stanley notes to consolidated financial statements 2014 ( continued ) senior debt securities denominated in non-u.
 dollar currencies may structured to provide return equity-linked , credit-linked commodity-linked or linked to other index (. consumer price index ).
 senior debt may be structured to be callable by company or extendible at option of holders senior debt securities.
 debt containing provisions allow holders to put or extend notes aggregated $ 2902 million at december 31 , 2015 and $ 2175 million at december 31 , 2014.
 in certain circumstances purchasers may be entitled to cause repurchase of notes.
 aggregated value of notes subject to these arrangements was $ 650 million at december 31 , 2015 and $ 551 million at december 31 , 2014.
 subordinated debt and junior subordinated debentures issued to meet capital requirements of company or regulated subsidiaries primarily.
 dollar denominated.
 during 2015  morgan stanley capital trusts vi and vii redeemed all issued and outstanding 6. 60% ( 6. 60 % ) capital securities  company concurrently redeemed related underlying junior subordinated debentures.
 senior debt 2014structured borrowings.
 company 2019s index-linked , equity-linked or credit-linked borrowings include structured instruments whose payments and redemption values linked to performance of specific index (. standard & poor 2019s 500 ) , basket of stocks  specific equity security  credit exposure or basket of credit exposures.
 to minimize exposure from movements in underlying index  equity  credit or other position  company entered into swap contracts and purchased options that convert borrowing costs into floating rates based upon libor.
 company carries entire structured borrowings at fair value.
swaps purchased options to economically hedge embedded features are derivatives carried at fair value.
 changes in fair value related to notes economic hedges reported in trading revenues.
 see note 3 for further information on structured borrowings.
 subordinated debt junior subordinated debentures.
 included in long-term borrowings are subordinated notes of $ 10404 million contractual weighted average coupon of 4. 45% ( 4. 45 % ) at december 31, 2015 and $ 8339 million contractual weighted average coupon of 4. 57% ( 4. 57 % ) at december 31 , 2014.
 junior subordinated debentures outstanding company were $ 2870 million at december 31, 2015 contractual weighted average coupon of 6. 22% ( 6. 22 % ) at december 31, 2015 $ 4868 million at december 31 , 2014 contractual weighted average coupon of 6. 37% ( 6. 37 % ) at december 31 , 2014.
 maturities of subordinated junior subordinated notes range from 2022 to 2067 maturities of certain junior subordinated debentures can be extended to 2052 at company 2019s option.
 asset liability management.
 securities inventories not financed by secured funding sources majority of company 2019s assets financed with deposits short-term funding  floating rate long-term debt or fixed rate long-term debt swapped to floating rate.
 fixed assets financed with fixed rate long-term debt.
 company uses interest rate swaps to match borrowings to duration holding period interest rate characteristics of assets funded manage interest rate risk.
 swaps convert certain company 2019s fixed rate borrowings into floating rate obligations.
 for non-u.
 dollar currency borrowings not used to fund assets in same currency company entered into currency swaps convert borrowings into.
 dollar obligations.
company 2019s use of swaps for asset liability management affected effective average borrowing rate.
 effective rate.

| 2015           | 2014           | 2013
----------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
weighted average coupon of long-term borrowings at period-end ( 1 )                       | 4.0% ( 4.0 % ) | 4.2% ( 4.2 % ) | 4.4% ( 4.4 % )
effective average borrowing rate for long-term borrowings after swaps at period-end ( 1 ) | 2.1% ( 2.1 % ) | 2.3% ( 2.3 % ) | 2.2% ( 2.2 % )


russia europe.
 average sales price realizations for uncoated freesheet paper decreased in europe russia reflecting weak economic conditions soft market demand.
 in russia sales prices in rubles increased improvement masked by impact currency depreciation against u. s.
 dollar.
 input costs higher for wood europe russia offset by lower chemical costs.
 planned maintenance downtime costs $ 11 million lower in 2014 than 2013.
 manufacturing operating costs favorable.
 entering 2015  sales volumes in first quarter expected seasonally weaker in russia flat in europe.
 average sales price realizations for uncoated freesheet paper expected remain steady in europe increase in russia.
 input costs lower for oil and wood offset by higher chemicals costs.
 indian papers net sales were $ 178 million in 2014  $ 185 million ( $ 174 million excluding excise duties 2013 ) in 2013 $ 185 million ( $ 178 million excluding excise duties ) in 2012.
 operating profits were $ 8 million ( loss of $ 12 million excluding gain resolution legal contingency ) in 2014 loss of $ 145 million ( loss $ 22 million excluding goodwill trade name impairment charges ) in 2013 loss of $ 16 million in 2012.
 average sales price realizations improved in 2014 compared with 2013 due to impact of price increases 2013.
 sales volumes flat reflecting weak economic conditions.
 input costs higher primarily for wood.
 operating costs planned maintenance downtime costs lower in 2014.
 first quarter of 2015  sales volumes expected be seasonally higher.
 average sales price realizations expected to decrease due to competitive pressures.
 asian printing papers net sales were $ 59 million in 2014  $ 90 million in 2013 $ 85 million in 2012.
 operating profits were $ 0 million in 2014 $ 1 million in both 2013 and 2012.
 u. s.
pulp net sales $ 895 million in 2014 compared with $ 815 million 2013 $ 725 million in 2012.
 operating profits $ 57 million 2014 compared with $ 2 million in 2013 loss $ 59 million in 2012.
 sales volumes 2014 increased from 2013 for fluff pulp and market pulp reflecting improved market demand.
 average sales price realizations increased significantly for fluff pulp prices for market pulp higher.
 input costs for wood and energy higher.
 operating costs lower planned maintenance downtime costs $ 1 million higher.
 compared with fourth quarter 2014 sales volumes first quarter of 2015 expected to decrease for market pulp slightly higher for fluff pulp.
 average sales price realizations expected stable for fluff pulp and softwood market pulp hardwood market pulp prices expected to improve.
 input costs flat.
 planned maintenance downtime costs about $ 13 million higher than fourth quarter of 2014.
 consumer packaging demand pricing correlate with consumer spending general economic activity.
 prices volumes major factors affecting profitability consumer packaging raw material energy costs freight costs manufacturing efficiency product mix.
 consumer packaging net sales 2014 decreased 1% ( 1 % ) from 2013 increased 7% ( 7 % ) from 2012.
 operating profits increased 11% ( 11 % ) from 2013 decreased 34% ( 34 % ) from 2012.
 excluding sheet plant closure costs costs associated permanent shutdown of paper machine augusta georgia mill costs related to sale of shorewood business 2014 operating profits 11% ( 11 % ) lower than 2013 30% ( 30 % ) lower than 2012.
 benefits from higher average sales price realizations favorable mix ( $ 60 million ) offset by lower sales volumes ( $ 11 million ) higher operating costs ( $ 9 million ) higher planned maintenance downtime costs ( $ 12 million ) higher input costs ( $ 43 million ) higher other costs ( $ 7 million ).
operating profits 2014 include $ 8 million costs with sheet plant closures operating profits 2013 include costs $ 45 million to permanent shutdown paper machine at augusta , georgia mill $ 2 million costs sale of shorewood business.
 consumer packaging.
 north american consumer packaging net sales were $ 2. 0 billion in 2014 compared with $ 2. 0 billion 2013 $ 2. 0 billion in 2012.
 operating profits were $ 92 million ( $ 100 million excluding sheet plant closure costs ) in 2014 compared with $ 63 million ( $ 110 million excluding paper machine shutdown costs costs sale of shorewood business ) in 2013 $ 165 million ( $ 162 million excluding gain sale shorewood business 2012 ).
 coated paperboard sales volumes 2014 lower than 2013 reflecting weaker market demand.
 business took 41000 tons market-related downtime in 2014 compared with 24000 tons in 2013.
 average sales price realizations increased year-

in millions      | 2014   | 2013   | 2012
---------------- | ------ | ------ | ------
sales            | $ 3403 | $ 3435 | $ 3170
operating profit | 178    | 161    | 268


weighted average fair value of options granted during 2010 , 2009 2008 estimated to be $ 7. 84 , $ 7. 18 $ 3. 84 , using black-scholes option pricing model with assumptions.
 at december 31 , 2010 2009  total unrecognized compensation cost to non-vested stock awards is $ 129. 3 million and $ 93. 5 million  expected to be recognized in pre-tax income over average period 1. 7 years.
 company granted total 1. 5 million restricted stock awards at prices from $ 25. 76 to $ 28. 15 various dates in 2010.
 awards vest annually over three years.
 granted 0. 9 million performance restricted stock units during 2010.
 granted at maximum achievable level number of shares vest based on specific revenue and ebitda goals for periods from 2010 through 2012.
 during 2009  granted 0. 5 million shares of restricted stock at price of $ 22. 55 vest annually over 3 years.
 on october 1 , 2009  granted 0. 4 million restricted stock units at price $ 24. 85 per share vested over six months.
 on march 20 , 2008  granted 0. 4 million shares of restricted stock at price $ 38. 75 vest quarterly over 2 years.
 on july 2, 2008 . 2 million shares canceled and assumed by lps.
 remaining unvested restricted shares converted by conversion factor of 1. 7952.
 awards vested as of october 1 , 2009 under change in control provisions due to metavante acquisition.
 on october 27 , 2008  granted 0. 8 million shares of restricted stock at price of $ 14. 35 vest annually over 3 years.
 as of december 31 , 2010 and 2009  have approximately 2.2 million and 1. 4 million unvested restricted shares remaining.
 as of december 31 , 2010 have 0. 6 million restricted stock units not vested.
 share repurchase plans october 25 , 2006 board of directors approved plan authorizing repurchases up to $ 200. 0 million common stock ( 201cold plan 201d ).
 april 17 , 2008  board of directors approved plan authorizing repurchases up to additional $ 250. 0 million common stock ( 201cnew plan 201d ).
 under new plan repurchased 5. 8 million shares stock for $ 226. 2 million  average price $ 38. 97 for year ended december 31 , 2008.
 year ended december 31 , 2008 repurchased additional 0. 2 million shares stock for $ 10. 0 million average price $ 40. 56 under old plan.
 during 2007  company repurchased 1. 6 million shares at average price $ 49. 15 under old plan.
 february 4, 2010 board of directors approved plan authorizing repurchases of up to 15. 0 million shares common stock in open market at prevailing market prices or privately negotiated transactions through january 31 , 2013.
 repurchased 1. 4 million shares common stock for $ 32. 2 million  average price $ 22. 97 through march 31 , 2010.
 no additional shares repurchased under this plan during year ended december 31 , 2010.
 approximately 13. 6 million shares common stock remain available to repurchase under plan as of december 31 , 2010.
 may 25 , 2010 board of directors authorized leveraged recapitalization plan to repurchase up to $ 2. 5 billion common stock at price range of $ 29. 00 2014 $ 31.00 per share common stock through modified 201cdutch auction 201d tender offer 201ctender offer 201d ).
 commenced july 6 , 2010 expired august 3 , 2010.
 oversubscribed $ 29. 00  resulting purchase 86. 2 million shares including 6. 4 million shares underlying unexercised stock options.
 repurchased shares added to treasury stock.
 fidelity national information services , inc.
 subsidiaries notes consolidated financial statements 2014 continued ) %%transmsg*** transmitting job : g26369 pcn : 087000000 ***%%pcmsg|87 |00008|yes|no|03/28/2011 17:32|0|0|page valid, no graphics -- color : n|

| 2010             | 2009             | 2008
---------------------------------------- | ---------------- | ---------------- | ----------------
risk free interest rate                  | 1.1% ( 1.1 % )   | 2.3% ( 2.3 % )   | 2.8% ( 2.8 % )
volatility                               | 35.6% ( 35.6 % ) | 35.0% ( 35.0 % ) | 26.0% ( 26.0 % )
dividend yield                           | 0.7% ( 0.7 % )   | 1.0% ( 1.0 % )   | 1.0% ( 1.0 % )
weighted average expected life ( years ) | 4.4              | 5.0              | 5.3


list of distribution locations including approximate square footage and if location leased or owned:.
 longview , texas ( c ) 63000 owned ) frankfort , new york , distribution center began receiving merchandise in fourth quarter of fiscal 2018 expected to begin shipping merchandise to stores in first quarter of fiscal 2019.
 b ) leased distribution center in hagerstown as extension of existing owned hagerstown location not considered separate distribution center.
 c ) mixing center to process high-volume bulk products.
 company 2019s store support center occupies approximately 260000 square feet of owned building space in brentwood , tennessee company 2019s merchandising innovation center occupies approximately 32000 square feet of leased building space in nashville , tennessee.
 company also leases approximately 8000 square feet of building space for petsense corporate headquarters  in scottsdale , arizona.
 item 3.
 legal proceedings company involved in litigation matters in ordinary course of business.
 company believes estimated loss related to matters adequately provided for in accrued liabilities to extent probable reasonably estimable.
 company expects these matters will be resolved without material adverse effect on consolidated financial position, results of operations or cash flows.
 item 4.
 mine safety disclosures not applicable.

distribution facility location | approximate square footage | owned/leased facility
------------------------------ | -------------------------- | ---------------------
frankfort new york ( a )       | 924000                     | owned
franklin kentucky              | 833000                     | owned
pendleton indiana              | 764000                     | owned
macon georgia                  | 684000                     | owned
waco texas                     | 666000                     | owned
casa grande arizona            | 650000                     | owned
hagerstown maryland ( b )      | 482000                     | owned
hagerstown maryland ( b )      | 309000                     | leased
waverly nebraska               | 592000                     | owned
seguin texas ( c )             | 71000                      | owned
lakewood washington            | 64000                      | leased
longview texas ( c )           | 63000                      | owned


annual maturities as of december 31 , 2006 scheduled:.
 holders of $ 400. 0 4. 50% ( 4. 50 % ) notes may require to repurchase 4. 50% ( 4. 50 % ) notes for cash at par in march 2008.
 notes mature in 2023 if not converted or repurchased.
 redemption of long-term debt in august 2005 redeemed remainder of 7. 875% ( 7. 875 % ) senior unsecured notes with aggregate principal amount of $ 250. 0 at maturity for total cost of $ 258. 6  included principal amount notes , accrued interest to redemption date prepayment penalty of $ 1. 4.
 redeem notes used proceeds from sale and issuance july 2005 of $ 250. 0 floating rate senior unsecured notes due 2008.
 december 2006 exchanged all $ 250. 0 floating rate notes due 2008 for $ 250. 0 aggregate principal amount floating rate notes due 2010.
 new floating rate notes mature november 15 , 2010 bear interest at per annum rate equal to three-month libor plus 200 basis points , 125 basis points less than interest rate on old floating rate notes.
 exchange made early participation payment of $ 41. 25 ( actual amount ) in cash per $ 1000 ( actual amount ) principal amount of old floating rate notes for total payment of $ 10. 3.
 accordance with eitf issue no.
 96-19 , debtor 2019s accounting for modification or exchange of debt instruments ( 96-19 201d ) transaction treated as exchange of debt for accounting purposes present value of remaining cash flows under terms original instrument not substantially different from new instrument.
 new floating rate notes reflected on consolidated balance sheet net of $ 10.early participation payment  amortized over life of new floating rate notes as discount using effective interest method recorded in interest expense.
 direct fees associated with exchange of $ 3. 5 reflected in interest expense.
 4. 25% ( 4. 25 % ) and 4. 50% ( 4. 50 % ) convertible senior notes in november 2006 exchanged $ 400. 0 of 4. 50% ( 4. 50 % ) convertible senior notes due 2023 ( 201c4. 50% ( 201c4. 50 % ) notes 201d ) for $ 400. 0 aggregate principal amount of 4. 25% ( 4. 25 % ) convertible senior notes due 2023 201c4. 25%. 25 % notes 201d.
 required by eitf 96-19  exchange treated as extinguishment of 4. 50% ( 4. 50 % ) notes and issuance of 4. 25% ( 4. 25 % ) notes for accounting purposes because present value of remaining cash flows plus fair value of embedded conversion option under terms original instrument different from new instrument.
 4. 25% ( 4. 25 % ) notes reflected on consolidated balance sheet at fair value at issuance  or $ 477. 0.
 recorded non-cash charge in fourth quarter of 2006 of $ 77. 0 reflecting difference between fair value of new debt and carrying value of old debt.
 difference fair value amortized through march 15 , 2012 first date holders may require to repurchase 4. 25% ( 4. 25 % ) notes  in reduction of reported interest expense in future periods.
 recorded non-cash charge of $ 3. 8 for extinguishment of unamortized debt issuance costs related to exchanged 4. 50% ( 4. 50 % ) notes.
 4. 25% ( 4. 25 % ) notes convertible into common stock at conversion price of $ 12.42 per share subject to adjustment specified circumstances including payment cash dividends common stock.
 conversion rate of new notes subject to adjustment for certain events from stock splits combinations stock dividends certain cash dividends other actions modify capital notes to consolidated financial statements 2014 ( continued ) amounts in millions except per share amounts ) %%transmsg*** transmitting job : y31000 pcn : 072000000 ***%%pcmsg|72 |00009|yes|no|02/28/2007 01:12|0|0|page valid , no graphics -- color : d|

2007                 | $ 2.6
-------------------- | --------
20081                | 2.8
2009                 | 257.0
2010                 | 240.9
2011                 | 500.0
thereafter           | 1247.9
total long-term debt | $ 2251.2


fair value of financial instruments believe fair values of current assets current liabilities approximate reported carrying amounts.
 fair values of non-current financial assets , liabilities derivatives shown in following table.
 we value notes other receivables based on expected future cash flows dis- counted at risk-adjusted rates.
 determine valuations for long-term debt other long-term liabilities based on quoted market prices or expected future payments dis- counted at risk-adjusted rates.
 derivative instruments during 2003  entered into interest rate swap agreement under receive floating rate of interest and pay fixed rate of interest.
 swap modifies interest rate exposure by converting note receivable with fixed rate to floating rate.
 aggregate notional amount of swap is $ 92 million matures in 2010.
 swap classified as fair value hedge under fas no.
 133 , 201caccounting for derivative instruments and hedging activities 201d ( 201cfas no.
 133 201d ) change in fair value of swap  change in fair value of underlying note receivable recognized in interest income.
 fair value of swap was $ 1 million asset at year-end 2005  $ 3 million liability at year-end 2004.
 hedge highly effective no net gain or loss reported during 2005 , 2004  2003.
 during 2005  entered into two interest rate swap agreements to manage volatil- ity of u.
 treasury component of interest rate risk associated with forecasted issuance our series f senior notes and exchange of series c and e senior notes for new series g senior notes.
 both swaps designated as cash flow hedges under fas no.
 133 terminated upon pricing of notes.
 both swaps effective in offsetting fluctuations in u. s.
 treasury component.
 no net gain or loss reported in earnings during 2005.
total amount for swaps recorded in other comprehensive income net loss of $ 2 million during 2005  amortized to interest expense using interest method over life of notes.
 at year-end 2005  six outstanding interest rate swap agreements to manage interest rate risk with residual interests retain with timeshare note sales.
 historically required by purchasers rating agen- cies to utilize interest rate swaps to protect excess spread within sold note pools.
 aggregate notional amount of swaps is $ 380 million expire through 2022.
 swaps not accounted for as hedges under fas no.
 133.
 fair value of swaps is net asset of $ 5 million at year-end 2005 net asset of approximately $ 3 million at year-end 2004.
 recorded $ 2 million net gain during 2005 and 2004  $ 3 million net gain during 2003.
 during 2005 , 2004 2003  entered into interest rate swaps to manage interest rate risk with forecasted timeshare note sales.
 during 2005  one swap designated as cash flow hedge under fas no.
 133 effective in offsetting interest rate fluctuations.
 amount ineffectiveness immaterial.
 second swap in 2005 did not qualify for hedge accounting.
 non-qualifying swaps resulted in loss of $ 3 million during 2005  gain of $ 2 million during 2004 loss of $ 4 million during 2003.
 amounts included in gains from sales of timeshare notes receivable.
 during 2005 , 2004 2003  entered into forward foreign exchange contracts to manage foreign currency exposure related to certain monetary assets.
 aggregate dollar equivalent of notional amount of contracts is $ 544 million at year-end 2005.
 forward exchange contracts not qualify as hedges in accordance with fas no.
 133.
 fair value of forward contracts is liability of $ 2 million at year-end 2005 zero at year-end 2004.
 recorded $ 26 million gain 2005 $ 3 million and $ 2 million net loss during 2004 and 2003 respectively relating to these forward foreign exchange contracts.
 net gains and losses for all years offset by income and losses from translating related monetary assets in foreign currencies into.
 dollars.
 during 2005  2004 2003  entered into foreign exchange option and forward contracts to hedge potential volatility of earnings and cash flows associated with variations in foreign exchange rates.
 aggregate dollar equivalent of notional amounts contracts is $ 27 million at year-end 2005.
 contracts have terms less than one year classified as cash flow hedges.
 changes in fair values recorded as component of other comprehensive income.
 fair value of option contracts approximately zero at year-end 2005 and 2004.
 during 2004 certain derivatives no longer effective in offsetting hedged item.
 cash flow hedge accounting treatment discontinued ineffective con- tracts resulted in loss of $ 1 million reported in earnings for 2004.
 remaining hedges effective no net gain or loss reported in earnings for 2005 , 2004  2003.
 as of year-end 2005 no deferred gains or losses on existing contracts accumulated in other comprehensive income expect to reclassify into earnings next year.
 during 2005  entered into forward foreign exchange contracts to manage currency exchange rate volatility associated with certain investments in foreign operations.
 one contract designated as hedge in net investment of foreign operation under fas no.
 133.
 hedge effective resulted in $ 1 million net loss in cumulative translation adjustment at year-end 2005.
 certain contracts did not qualify as hedges under fas no.
 133 resulted in gain of $ 3 million for 2005.
 contracts offset losses associated with translation adjustments for various investments in for- eign operations.
contracts have aggregate dollar equivalent of notional amounts $ 229 million fair value approximately zero at year-end 2005.
 contingencies guarantees issue guarantees to lenders hotel owners primarily to obtain long-term management contracts.
 guarantees have stated maximum funding term of five years or less.
 terms guarantees to lenders require to fund if cash flows from hotel operations inadequate to cover annual debt service or to repay loan at end of term.
 guarantees to hotel owners require to fund if hotels not attain specified levels of 5 0 | m a r r i o t t i n t e r n a t i o n a l , i n c.
 2 0 0 5

( $ in millions )                              | 2005 carrying amount | 2005 fair value | 2005 carrying amount | fair value
---------------------------------------------- | -------------------- | --------------- | -------------------- | ----------
notes and other long-term assets               | $ 1374               | $ 1412          | $ 1702               | $ 1770
long-term debt and other long-term liabilities | $ 1636               | $ 1685          | $ 848                | $ 875
derivative instruments                         | $ 6                  | $ 6             | $ 2014               | $ 2014


10-k altria ar release tuesday , february 27 , 2018 10:00pm andra design llc verdicts appealed , remains risk relief may not be obtainable in all cases.
 risk substantially reduced given 47 states and puerto rico limit dollar amount of bonds or require no bond at all.
 discussed below tobacco litigation plaintiffs challenged constitutionality of florida 2019s bond cap statute in several cases plaintiffs may challenge state bond cap statutes in other jurisdictions.
 such challenges may include applicability of state bond caps in federal court.
 states , including florida , may seek to repeal or alter bond cap statutes through legislation.
 altria group , inc.
 cannot predict outcome of such challenges , possible consolidated results of operations , cash flows or financial position of altria group , inc. , or one more its subsidiaries  could be affected in particular fiscal quarter or fiscal year by unfavorable outcome of one or more such challenges.
 altria group , inc.
 and subsidiaries record provisions in consolidated financial statements for pending litigation when determine unfavorable outcome probable and amount loss can be reasonably estimated.
 at present time  reasonably possible unfavorable outcome case may occur  except to extent discussed in note 18.
 contingencies : ( i ) management concluded not probable loss incurred in pending tobacco-related cases ; ( ii ) management unable to estimate possible loss or range of loss result from unfavorable outcome in pending tobacco-related cases ; ( iii ) accordingly management not provided amounts in consolidated financial statements for unfavorable outcomes , if any.
 litigation defense costs are expensed as incurred.
 altria group , inc.
 and subsidiaries achieved substantial success in managing litigation.
nevertheless , litigation subject to uncertainty significant challenges remain.
 possible consolidated results of operations , cash flows or financial position of altria group , inc. , or one or more of its subsidiaries, could be materially affected in particular fiscal quarter or fiscal year by unfavorable outcome or settlement of pending litigation.
 altria group , inc.
 and each its subsidiaries as defendant believe  each advised by counsel cases, it has valid defenses to litigation pending against it valid bases for appeal of adverse verdicts.
 each companies defended  and will continue to defend  vigorously against litigation challenges.
 altria group , inc.
 and its subsidiaries may enter into settlement discussions in particular cases if believe in best interests of altria group , inc.
 to.
 overview of altria group , inc.
pm usa tobacco- related litigation types number of cases : claims related to tobacco products fall within categories : ( i ) smoking and health cases alleging personal injury brought on behalf of individual plaintiffs ; ( ii ) smoking and health cases primarily alleging personal injury or seeking court-supervised programs for ongoing medical monitoring brought on behalf of class of individual plaintiffs including cases aggregated claims of individual plaintiffs tried in single proceeding ; ( iii ) health care cost recovery cases by governmental domestic foreign ) plaintiffs seeking reimbursement for health care expenditures caused by cigarette smoking disgorgement of profits ; ( iv ) class action suits alleging terms 201clights 201d and 201cultra lights 201d deceptive unfair trade practices , common law statutory fraud  unjust enrichment  breach of warranty violations of racketeer influenced corrupt organizations act ( 201crico 201d ) ; ( v ) other tobacco-related litigation described below.
 plaintiffs 2019 theories of recovery defenses raised in pending smoking and health , health care cost recovery 201clights/ultra lights 201d cases discussed below.
 table below lists number of certain tobacco-related cases pending in united states against pm usa  altria group , inc.
 as of december 31 , 2017 , 2016 and.
 1 ) not include 2414 cases by flight attendants seeking compensatory damages for personal injuries caused by exposure to environmental tobacco smoke ( 201cets 201d ).
 flight attendants allege members of ets smoking and health class action in florida  settled in 1997 (.
 terms court-approved settlement allowed class members to file individual lawsuits seeking compensatory damages prohibited from seeking punitive damages.
not include individual smoking health cases by behalf plaintiffs in florida state federal courts following decertification of engle case ( discussed below in smoking and health litigation - engle class action ).
 2 ) includes one case 30 civil actions tried in six consolidated trials in west virginia ( re tobacco litigation ).
 pm usa defendant in nine of 30 cases.
 parties agreed to resolve cases for immaterial amount notified court.
 see health care cost recovery litigation - federal government 2019s lawsuit below.
 international tobacco-related cases : as of january 29, 2018 pm usa named defendant in 10 health care cost recovery actions in canada eight of also name altria group , inc.
 as defendant.
 pm usa and altria group  inc.
 also named defendants in seven smoking and health class actions in various canadian provinces.
 see guarantees similar matters below for discussion of distribution agreement between altria group , inc.
 and pmi provides for indemnities for certain liabilities concerning tobacco products.

| 2017 | 2016 | 2015
----------------------------------------------------------------------- | ---- | ---- | ----
individual smoking and health cases ( 1 )                               | 92   | 70   | 65
smoking and health class actions and aggregated claims litigation ( 2 ) | 4    | 5    | 5
health care cost recovery actions ( 3 )                                 | 1    | 1    | 1
201clights/ultra lights 201d class actions                              | 3    | 8    | 11


f-80 www. thehartford. com hartford financial services group , inc.
 notes to consolidated financial statements continued ) 14.
 commitments contingencies future minimum lease commitments as of december 31 , 2016 operating leases.
 [1] excludes expected future minimum sublease income of approximately $ 2 , $ 2 , $ 2  $ 2 , $ 0 $ 0 in 2017 , 2018  2019 2020  2021 thereafter.
 company 2019s lease commitments consist primarily of lease agreements for office space  automobiles  office equipment expire at various dates.
 unfunded commitments as of december 31, 2016 company has outstanding commitments totaling $ 1. 6 billion  $ 1. 2 billion committed to fund limited partnership other alternative investments called partnership commitment period fund purchase of new investments partnership expenses.
 $ 313 of outstanding commitments relate to funding obligations private placement securities.
 remaining outstanding commitments of $ 95 relate to mortgage loans company expecting to fund in first half of 2017.
 guaranty funds other insurance-related assessments in all states insurers licensed to transact certain classes of insurance required to become members of guaranty fund.
 in most states event insolvency of insurer insurance guaranty funds may assess members to pay covered claims of insolvent insurers.
 assessments based on each member 2019s proportionate share of written premiums in state for classes of insurance in insolvent insurer engaged.
 assessments generally limited for year to one or two percent of premiums written per year depending on state.
 some states permit member insurers to recover assessments paid through surcharges on policyholders or full or partial premium tax offsets other states permit recovery of assessments through rate filing process.
liabilities for guaranty fund other insurance-related assessments accrued when assessment probable , reasonably estimated when event obligating company to pay imposed or probable assessment occurred.
 liabilities for guaranty funds other insurance- related assessments not discounted included as part of other liabilities in consolidated balance sheets.
 as of december 31 , 2016 and 2015 liability balance was $ 134 and $ 138 , respectively.
 as of december 31 , 2016 2015 amounts related to premium tax offsets of $ 34 and $ 44 , included in other assets.
 derivative commitments company 2019s derivative agreements contain provisions tied to financial strength ratings  set by nationally recognized statistical agencies of individual legal entity entered derivative agreement.
 if legal entity 2019s financial strength fall below certain ratings counterparties to derivative agreements could demand immediate ongoing full collateralization in certain instances enable counterparties to terminate agreements demand immediate settlement of all outstanding derivative positions traded under each impacted bilateral agreement.
 settlement amount determined by netting derivative positions transacted under each agreement.
 if termination rights exercised by counterparties could impact legal entity 2019s ability to conduct hedging activities by increasing associated costs decreasing willingness of counterparties to transact with legal entity.
 aggregate fair value of all derivative instruments with credit-risk-related contingent features in net liability position as of december 31 , 2016 was $ 1. 4 billion.
 of this $ 1. 4 billion legal entities posted collateral of $ 1. 7 billion in normal course of business.
 in company has posted collateral of $ 31 associated with customized gmwb derivative.
based on derivative market values as of december 31 , 2016 , downgrade of one level below current financial strength ratings by either moody 2019s or s&p would not require additional assets posted as collateral.
 market values december 31  2016  downgrade of two levels below current financial strength ratings by either moody 2019s or s&p would require additional $ 10 of assets posted as collateral.
 collateral amounts could change as derivative market values change , result of changes in hedging activities or changes in contractual terms negotiated.
 nature of collateral we post , when required is primarily in form of.
 treasury bills ,.
 treasury notes and government agency securities.
 guarantees in selling businesses or entities to third parties  company agreed to indemnify purchasers for losses arising subsequent to closing due to breaches of representations and warranties with respect business or entity being sold or covenants and obligations of company and/or subsidiaries.
 these obligations typically subject to time limitations , defined by contract or operation of law  statutes of limitation.
 in some cases maximum potential obligation is subject to contractual limitations , in other cases such limitations not specified or applicable.
 company does not expect to make payments on these guarantees and not carrying liabilities associated with these guarantees.

| operating leases
-------------------------------- | ----------------
2017                             | $ 42
2018                             | 35
2019                             | 28
2020                             | 20
2021                             | 10
thereafter                       | 28
total minimum lease payments [1] | $ 163


38| | duke realty corporation annual report 2012 dependent upon factors including availability of credit to potential buyers to purchase properties at prices acceptable.
 we believe we demonstrated ability to generate significant liquidity through disposition of non-strategic properties , potential future adverse changes to market and economic conditions could negatively impact our ability to dispose of such properties.
 transactions with unconsolidated entities transactions with unconsolidated partnerships and joint ventures provide source of liquidity.
 we will sell properties to unconsolidated entities  while retaining continuing interest in entity receive proceeds commensurate to interests we not own.
 unconsolidated entities will obtain debt financing distribute to us and joint venture partners all or portion of proceeds from debt financing.
 uses of liquidity principal uses of liquidity include : 2022 property investment ; 2022 leasing/capital costs ; 2022 dividends and distributions to shareholders unitholders ; 2022 long-term debt maturities ; 2022 opportunistic repurchases of outstanding debt and preferred stock ; 2022 other contractual obligations.
 property investment pursue asset repositioning strategy increasing investment concentration in industrial and medical office properties reducing investment concentration in suburban.
 office properties.
 we evaluate development and acquisition opportunities based upon market outlook  including general economic conditions , supply long-term growth potential.
 our ability to make future property investments  dependent upon identifying suitable acquisition and development opportunities dependent upon continued access to longer-term sources of liquidity  including issuances of debt or equity securities generating cash flow by disposing of selected properties.
 leasing/capital costs tenant improvements leasing commissions related to initial leasing of newly completed or vacant space in acquired properties are referred to as first generation expenditures.
expenditures included within development of real estate investments deferred leasing costs in consolidated statements of cash flows.
 tenant improvements and leasing costs to re-let rental space previously under lease to tenants are referred as second generation expenditures.
 building improvements not specific to any tenant but improve integral components of real estate properties are also second generation expenditures.
 principal uses of liquidity is to fund second generation leasing/capital expenditures of real estate investments.
 as illustrated in tables below significantly reduced such expenditures in 2012 direct result of repositioning investment concentration in office properties in accordance with asset strategy.
 summary of second generation capital expenditures by type of expenditure ( in thousands ) :

| 2012    | 2011    | 2010
------------------------------------- | ------- | ------- | -------
second generation tenant improvements | $ 26643 | $ 50079 | $ 36676
second generation leasing costs       | 31059   | 38130   | 39090
building improvements                 | 6182    | 11055   | 12957
total                                 | $ 63884 | $ 99264 | $ 88723


ireland.
 holdings ireland , everest dublin holdings , ireland re and ireland insurance conduct business in ireland subject to taxation in ireland.
 aavailable information.
 company 2019s annual reports on form 10-k , quarterly reports on form 10-q , current reports on form 8-k , proxy statements amendments to reports available free of charge through company 2019s internet website at http://www. everestre. com soon after reports electronically filed with securities and exchange commission ( 201csec 201d ).
 item 1a.
 risk factors other information in report following risk factors should be considered when evaluating investment in our securities.
 if circumstances by individual risk factors materialize , our business , financial condition results of operations could be materially adversely affected trading price of common shares could decline significantly.
 risks relating to business fluctuations in financial markets could result in investment losses.
 prolonged severe disruptions in overall public and private debt and equity markets, occurred during 2008 , could result in significant realized and unrealized losses in investment portfolio.
 financial markets improved since 2008 , could deteriorate in future.
 could disruption in individual market sectors , occurred in energy sector in recent years.
 declines in financial markets could result in significant realized unrealized losses on investments material adverse impact on results of operations , equity , business and insurer financial strength debt ratings.
 results could be adversely affected by catastrophic events.
 exposed to unpredictable catastrophic events , including weather-related other natural catastrophes , acts of terrorism.
 material reduction in operating results caused by more catastrophes could inhibit ability to pay dividends or to meet interest and principal payment obligations.
illustration past five calendar years  pre-tax catastrophe losses  net of reinsurance  were as follows:.
 losses from future catastrophic events could exceed projections.
 we use projections of possible losses from future catastrophic events varying types magnitudes as strategic underwriting tool.
 use loss projections to estimate potential catastrophe losses in certain geographic areas decide on placement of retrocessional coverage or other actions to limit extent potential losses in given geographic area.
 loss projections are approximations  reliant on mix of quantitative and qualitative processes actual losses may exceed projections by material amount resulting in material adverse effect on financial condition results of operations.

calendar year:          | pre-tax catastrophe losses
----------------------- | --------------------------
( dollars in millions ) |
2018                    | $ 1800.2
2017                    | 1472.6
2016                    | 301.2
2015                    | 53.8
2014                    | 56.3


fair value measurements of borrowings under our credit agreement and receivables facility classified as level 2 within fair value hierarchy determined based upon significant inputs observable in market  including interest rates on recent financing transactions with similar terms and maturities.
 estimated fair value by calculating upfront cash payment market participant require at december 31 , 2016 to assume these obligations.
 fair value of our notes classified as level 1 value hierarchy determined based upon observable market inputs including quoted market prices in active market.
 fair value of our euro notes determined based upon observable market inputs including quoted market prices in market not active classified as level 2 within fair value hierarchy.
 note 12.
 commitments contingencies operating leases obligated under noncancelable operating leases for corporate office space , warehouse and distribution facilities  trucks certain equipment.
 future minimum lease commitments under these leases at december 31, 2016 are as follows ( in thousands ) : years ending december 31:.
 rental expense for operating leases was approximately $ 211. 5 million , $ 168. 4 million and $ 148. 5 million during years ended december 31 , 2016 , 2015 and 2014  respectively.
 guarantee residual values of majority of our truck and equipment operating leases.
 residual values decline over lease terms to defined percentage of original cost.
 in lessor not realize residual value when equipment sold we responsible for portion of shortfall.
 if lessor realizes more than residual value when equipment sold  we be paid amount realized over residual value.
 terminated all operating leases subject to these guarantees at december 31 , 2016  portion of guaranteed residual value would have totaled approximately $ 59. 0 million.
not recorded liability for guaranteed residual value of equipment under operating leases as recovery on disposition of equipment under leases expected to approximate guaranteed residual value.
 litigation and related contingencies have certain contingencies resulting from litigation , claims other commitments subject to environmental and pollution control laws and regulations incident to ordinary course of business.
 expect resolution of such contingencies will not materially affect our financial position , results of operations or cash flows.

2017                          | $ 200450
----------------------------- | ---------
2018                          | 168926
2019                          | 136462
2020                          | 110063
2021                          | 82494
thereafter                    | 486199
future minimum lease payments | $ 1184594


( in millions ) 2010 2009 2008.
 operating activities net cash increased by $ 374 million to $ 3547 million in 2010 compared to 2009.
 increase attributable to improvement in operating working capital balances of $ 570 million $ 187 million to lower net income tax payments 2009.
 partially offsetting improvements was net reduction in cash from operations of $ 350 million related to defined benefit pension plan.
 reduction result of increased contributions to pension trust of $ 758 million compared to 2009 partially offset by increase in cas costs recovered on contracts.
 operating working capital accounts consists of receivables  inventories  accounts payable  customer advances and amounts in excess of costs incurred.
 improvement in cash operating working capital due to decline in 2010 accounts receivable balances compared to 2009 increase in 2010 customer advances and amounts in excess of costs incurred balances compared to 2009.
 improvements partially offset by decline in accounts payable balances in 2010 2009.
 decline in accounts receivable due to higher collections on programs at electronic systems , is&gs  space systems business areas.
 increase in customer advances and amounts in excess of costs incurred attributable to increase on government and commercial satellite programs at space systems and air mobility programs at aeronautics partially offset by decrease on programs at electronic systems.
 decrease in accounts payable attributable to timing of accounts payable activities across all segments.
 net cash operating activities decreased by $ 1248 million to $ 3173 million in 2009 compared to 2008.
 decline attributable to increase in contributions to defined benefit pension plan of $ 1373 million compared 2008 and increase in operating working capital accounts of $ 147 million.
 partially offsetting items was impact of lower net income tax payments in 2009 compared to 2008 $ 319 million.
decline in cash by operating working capital due to growth of receivables on programs in ms2 and gt&l lines business at electronic systems increase in inventories on combat aircraft programs at aeronautics offset by increases in customer advances excess of costs on government satellite programs at space systems timing of accounts payable activities.
 investing activities capital expenditures 2013 majority of capital expenditures relate to facilities infrastructure equipment to support new and existing programs across business segments.
 incur capital expenditures for support programs general enterprise infrastructure.
 capital expenditures for property , plant equipment amounted to $ 820 million in 2010, $ 852 million in 2009  $ 926 million in 2008.
 expect operating cash flows will continue to sufficient to fund annual capital expenditures next years.
 acquisitions , divestitures other activities 2013 acquisition activities include acquisition of businesses investments in affiliates.
 amounts paid in 2010 of $ 148 million related to investments in affiliates.
 paid $ 435 million in 2009 for acquisition activities compared with $ 233 million in 2008.
 in 2010 received proceeds of $ 798 million from sale of eig  net of $ 17 million in transaction costs ( note 2.
 no material divestiture activities in 2009 and 2008.
 during 2010 increased short-term investments by $ 171 million compared to increase of $ 279 million in 2009.
 financing activities share activity dividends 2013 during 2010  2009 2008  repurchased 33. 0 million , 24. 9 million 29. 0 million shares of common stock for $ 2483 million , $ 1851 million  $ 2931 million.
 shares repurchased in 2010 , 0. 9 million shares for $ 63 million repurchased in december settled paid for in january 2011.
october 2010  board of directors approved new share repurchase program for repurchase common stock time-to-time  up to authorized amount of $ 3. 0 billion ( see note 12 ).
 under program we discretion to determine dollar amount of shares to be repurchased timing of repurchases in compliance with applicable law regulation.
 repurchased total of 11. 2 million shares under program for $ 776 million  as of december 31 , 2010  remained $ 2224 million available for additional share repurchases.
 connection with approval new share repurchase program board terminated previous share repurchase program.
 cash received from issuance common stock with stock option exercises during 2010 , 2009  2008 totaled $ 59 million , $ 40 million , $ 250 million.
 activities resulted in issuance of 1. 4 million shares , 1. 0 million shares , 4. 7 million shares during respective periods.

( in millions )                           | 2010           | 2009           | 2008
----------------------------------------- | -------------- | -------------- | --------------
net cash provided by operating activities | $ 3547         | $ 3173         | $ 4421
net cash used for investing activities    | -319 ( 319 )   | -1518 ( 1518 ) | -907 ( 907 )
net cash used for financing activities    | -3363 ( 3363 ) | -1476 ( 1476 ) | -3938 ( 3938 )


american tower corporation subsidiaries notes to consolidated financial statements 2014 continued basis step-up from corporate restructuring represents tax effects of increasing basis for tax purposes of certain company 2019s assets with spin-off from american radio systems corporation  former parent company.
 at december 31 , 2003  company had net federal state operating loss carryforwards available to reduce future taxable income of approximately $ 0. 9 billion and $ 1. 5 billion  respectively.
 if not utilized company 2019s net operating loss carryforwards expire ( in thousands ) :.
 no.
 109 201caccounting for income taxes , 201d requires companies record valuation allowance when 201cmore likely some portion or all deferred tax assets not be realized. 201d at december 31 , 2003  company provided valuation allowance of approximately $ 156. 7 million  primarily related to net state deferred tax assets , capital loss carryforwards lost tax benefit costs associated with tax refund claims.
 company not provided valuation allowance for remaining net deferred tax assets  primarily tax refund claims federal net operating loss carryforwards  as management believes company successful with tax refund claims sufficient time to realize federal net operating loss carryforwards during twenty-year tax carryforward period.
 company intends to recover portion of deferred tax asset through tax refund claims  related to certain federal net operating losses  filed during 2003 part of tax planning strategy implemented in 2002.
 recoverability of remaining net deferred tax asset assessed utilizing stable state ( no growth ) projections based current operations.
 projections show significant decrease in depreciation interest expense in later years of carryforward period result of significant portion of assets fully depreciated during first fifteen years carryforward period debt repayments reducing interest expense.
recoverability of net deferred tax asset not dependent on material improvements to operations  material asset sales or non-routine transactions.
 based on current outlook of future taxable income during carryforward period management believes net deferred tax asset will be realized.
 realization of company 2019s deferred tax assets dependent upon ability to generate approximately $ 1. 0 billion in taxable income from january 1 , 2004 to december 31 , 2023.
 if company unable to generate sufficient taxable income future or carry back losses it will be required to reduce net deferred tax asset through charge to income tax expense in decrease in stockholders 2019 equity.
 depending on resolution of verestar bankruptcy proceedings company may be entitled to worthless stock or bad debt deduction for investment in verestar.
 no income tax benefit provided for these potential deductions due to uncertainty surrounding bankruptcy proceedings.
 13.
 stockholders 2019 equity preferred stock as of december 31 , 2003 company authorized to issue up to 20. 0 million shares of $. 01 par value preferred stock.
 as of december 31 , 2003 and 2002 no preferred shares issued or outstanding.

years ended december 31, | federal  | state
------------------------ | -------- | ---------
2004 to 2008             | $ 1451   | $ 483578
2009 to 2013             | 12234    | 66666
2014 to 2018             | 10191    | 235589
2019 to 2023             | 903010   | 728139
total                    | $ 926886 | $ 1513972


analog devices , inc.
 notes to consolidated financial statements 2014 continued ) depreciation expense for property , plant and equipment was $ 134. 5 million , $ 130. 1 million and $ 114. 1 million in fiscal 2016 , 2015 and 2014  respectively.
 company reviews property , plant and equipment for impairment whenever events or changes circumstances indicate carrying amount of assets may not be recoverable.
 recoverability of assets determined by comparison of carrying amount to future undiscounted cash flows assets expected to generate over remaining economic lives.
 if assets impaired  impairment recognized in earnings equals amount by carrying value of assets exceeds fair value determined by quoted market price or value determined by discounted cash flow technique.
 if assets not impaired  but useful lives decreased remaining net book value is depreciated over revised useful life.
 not recorded material impairment charges related to property , plant and equipment in fiscal 2016 , fiscal 2015 or fiscal 2014.
.
 goodwill intangible assets goodwill company evaluates goodwill for impairment annually whenever events or changes circumstances suggest carrying value of goodwill may not be recoverable.
 company tests goodwill for impairment at reporting unit level ( operating segment or one level below operating segment ) on annual basis on first day of fourth quarter ( or about august 1 ) or more frequently if indicators of impairment exist.
 for company 2019s latest annual impairment assessment as of july 31 , 2016  company identified reporting units to be its seven operating segments.
 performance of test involves two-step process.
 first step quantitative impairment test involves comparing fair values of applicable reporting units with aggregate carrying values including goodwill.
 company determines fair value of reporting units using weighting of income and market approaches.
under income approach , company uses discounted cash flow methodology requires management to make significant estimates and assumptions related to forecasted revenues  gross profit margins  operating income margins  working capital cash flow  perpetual growth rates  long-term discount rates , others.
 for market approach , company uses guideline public company method.
 method company utilizes information from comparable publicly traded companies with similar operating and investment characteristics as reporting units  to create valuation multiples applied to operating performance of reporting unit being tested  to obtain respective fair values.
 to assess reasonableness of calculated reporting unit fair values , company reconciles aggregate fair values of reporting units determined to current market capitalization  allowing for reasonable control premium.
 if carrying amount of reporting unit , calculated using approaches, exceeds reporting unit 2019s fair value , company performs second step of goodwill impairment test to determine amount of impairment loss.
 second step goodwill impairment test involves comparing implied fair value of affected reporting unit 2019s goodwill with carrying value of reporting unit.
 no impairment of goodwill in any of fiscal years presented.
 company 2019s next annual impairment assessment performed as of first day of fourth quarter of fiscal year ending october 28 , 2017 ( fiscal 2017 ) unless indicators arise require company to reevaluate at earlier date.
 following table presents changes in goodwill during fiscal 2016 and fiscal 2015:.
 ( 1 ) amount in fiscal 2015 represents changes to goodwill as result of finalizing acquisition accounting related to hittite acquisition.
 ( 2 ) represents goodwill related to other acquisitions not material to company individual or aggregate basis.
intangible assets company reviews finite-lived intangible assets for impairment whenever events changes circumstances indicate carrying value of assets may not be recoverable.
 recoverability assets determined by comparison of carrying value to estimated future undiscounted cash flows assets expected to generate over remaining

| 2016           | 2015
------------------------------------------------------- | -------------- | --------------
balance at beginning of year                            | $ 1636526      | $ 1642438
acquisition of hittite ( note 6 ) ( 1 )                 | 2014           | -1105 ( 1105 )
goodwill adjustment related to other acquisitions ( 2 ) | 44046          | 3663
foreign currency translation adjustment                 | -1456 ( 1456 ) | -8470 ( 8470 )
balance at end of year                                  | $ 1679116      | $ 1636526


goodwill goodwill represents excess of solexa purchase price over sum amounts assigned to assets acquired less liabilities assumed.
 company believes acquisition of solexa will produce significant benefits : 2022 increased market presence and opportunities.
 combination of company and solexa should increase combined company 2019s market presence and opportunities for growth in revenue , earnings stockholder return.
 company believes solexa technology is complementary to company 2019s portfolio of products and services will enhance company 2019s capabilities to service existing customers accelerate develop- ment of additional technologies  products and services.
 company believes integrating solexa 2019s capabilities with company 2019s technologies will better position company to address emerging biomarker research and development in-vitro and molecular diag- nostic markets.
 company began to recognize revenue from products shipped result of acquisition during first quarter of 2007.
 2022 operating efficiencies.
 combination of company and solexa provides opportunity for potential economies of scale and cost savings.
 company believes these primary factors support goodwill recognized as result of purchase price paid for solexa  in relation to other acquired tangible and intangible assets  including in-process research and development.
 unaudited pro forma information shows results of company 2019s operations for specified reporting periods as though acquisition occurred as of beginning of period ( in thousands  except per share data ) : year ended december 30 , year ended december 31.
 pro forma results prepared for comparative purposes only not necessarily indicative of actual results of operations had acquisition taken place beginning of periods presented or results may occur in future.
 pro forma results exclude $ 303. 4 million non-cash acquired ipr&d charge recorded upon closing of acquisition during first quarter of 2007.
investment in solexa november 12, 2006  company entered definitive securities purchase agreement with solexa company invested approximately $ 50 million in solexa exchange for 5154639 newly issued shares of solexa common stock conjunction with merger of two companies.
 investment valued at $ 67. 8 million as of december 31 , 2006  represented market value of $ 13. 15 per share solexa common stock.
 investment eliminated part company 2019s purchase accounting upon closing merger january 26 , 2007.
 illumina , inc.
 notes to consolidated financial statements 2014 ( continued )

| year ended december 30 2007 | year ended december 31 2006
------------------------------------- | --------------------------- | ---------------------------
revenue                               | $ 366854                    | $ 187103
net income ( loss )                   | $ 17388                     | $ -38957 ( 38957 )
net income ( loss ) per share basic   | $ 0.32                      | $ -0.68 ( 0.68 )
net income ( loss ) per share diluted | $ 0.29                      | $ -0.68 ( 0.68 )


82 | 2017 form 10-k reconciliation of beginning and ending amount gross unrecognized tax benefits for uncertain tax positions including positions impacting only timing tax benefits follows.
 reconciliation of unrecognized tax benefits:1 years a0ended a0december a031.
 1 foreign currency impacts included within each line applicable.
 2 includes cash payment or reduction of assets to settle liability.
 classify interest and penalties on income taxes as component of provision for income taxes.
 recognized net provision for interest and penalties of $ 38 million , $ 34 million $ 20 million during years ended december 31 , 2017, 2016 2015  respectively.
 total interest and penalties accrued $ 157 million and $ 120 million as of december a031 , 2017 and 2016 .
 on january 31 , 2018 received revenue agent 2019s report from irs indicating end of field examination of.
 income tax returns for 2010 to 2012.
 audits of 2007 to 2012 including impact of loss carryback to 2005 irs proposed to tax in united states profits earned from certain parts transactions by csarl based on irs examination team 2019s application of 201csubstance-over-form 201d or 201cassignment-of-income 201d judicial doctrines.
 contesting proposed increases to tax and penalties for these years of approximately $ 2. 3 billion.
 believe relevant transactions complied with applicable tax laws did not violate judicial doctrines.
 filed.
 income tax returns on same basis for years after 2012.
 information available do not anticipate significant increase or decrease to unrecognized tax benefits for matter within next 12 months.
 believe ultimate disposition of matter not have material adverse effect on consolidated financial position liquidity or results of operations.
exception of loss carryback to 2005 , tax years prior to 2007 generally no longer subject to u. s.
 tax assessment.
 in major non-u. s.
 jurisdictions including australia brazil china germany japan mexico switzerland singapore u. k. , tax years typically subject to examination for three to ten years.
 due to uncertainty related to timing and potential outcome of audits  cannot estimate range of possible change in unrecognized tax benefits in next 12 months.

( millions of dollars )                                       | years ended december 31 , 2017 | years ended december 31 , 2016
------------------------------------------------------------- | ------------------------------ | ------------------------------
balance at january 1,                                         | $ 1032                         | $ 968
additions for tax positions related to current year           | 270                            | 73
additions for tax positions related to prior years            | 20                             | 55
reductions for tax positions related to prior years           | -27 ( 27 )                     | -36 ( 36 )
reductions for settlements2                                   | -9 ( 9 )                       | -24 ( 24 )
reductions for expiration of statute of limitations           | 2014                           | -4 ( 4 )
balance at december 31,                                       | $ 1286                         | $ 1032
amount that if recognized would impact the effective tax rate | $ 1209                         | $ 963


2011 compared to 2010 is&gs 2019 net sales 2011 decreased $ 540 million or 5% ( 5 % ) compared to 2010.
 decrease attributable to lower volume of approximately $ 665 million due to absence of dris program 2010.
 census decline in activities on jtrs program.
 decrease partially offset by increased net sales on numerous programs.
 is&gs 2019 operating profit for 2011 increased $ 60 million or 7% ( 7 % ) compared to 2010.
 operating profit increased approximately $ 180 million due to volume retirement of risks in 2011 absence of reserves recognized in 2010 on numerous programs ( including odin ( $ 60 million ) twic automated flight service station programs ).
 increases in operating profit partially offset by absence of dris program decline in activities on jtrs program of about $ 120 million.
 adjustments not related to volume including net profit rate adjustments approximately $ 130 million higher in 2011 compared to 2010.
 backlog backlog decreased in 2012 compared to 2011 due to substantial completion of programs in 2011 ( odin .
 census  jtrs ).
 decrease in backlog 2011 due to declining activities on jtrs program other smaller programs.
 expect is&gs 2019 net sales to decline in 2013 in mid single digit percentage range compared to 2012 due to continued downturn in federal information technology budgets.
 operating profit expected to decline in 2013 in mid single digit percentage range consistent with expected decline in net sales margins comparable with 2012 results.
 missiles and fire control mfc business segment provides air and missile defense systems ; tactical missiles air-to-ground precision strike weapon systems ; fire control systems ; mission operations support  readiness  engineering support  integration services ; logistics technical services ; manned and unmanned ground vehicles.
mfc 2019s major programs include pac-3  thaad multiple launch rocket system mlrs hellfire javelin joint air-to-surface standoff missile jassm apache fire control system sniper ae  low altitude navigation targeting infrared for night ( lantirn ae ) sof clss.
 mfc 2019s operating results included in millions ) :.
 2012 compared to 2011 mfc 2019s net sales for 2012 comparable to 2011.
 sales decreased approximately $ 130 million due to lower volume risk retirements on services programs $ 60 million due to lower volume from fire control systems programs ( primarily sniper ae lantirn ae apache ).
 decreases offset by higher net sales of $ 95 million due to higher volume from tactical missile programs primarily javelin hellfire $ 80 million for air and missile defense programs ( primarily pac-3 thaad ).
 mfc 2019s operating profit for 2012 increased $ 187 million or 17% ( 17 % ) compared to 2011.
 increase attributable to higher risk retirements volume of $ 95 million from tactical missile programs javelin hellfire increased risk retirements volume $ 60 million for air and missile defense programs primarily thaad pac-3 $ 45 million from resolution of contractual matters.
 partially offsetting increases was lower risk retirements volume on various programs including $ 25 million for services programs.
 adjustments not related to volume  including net profit booking rate adjustments other matters described were approximately $ 145 million higher for 2012 compared to 2011.

| 2012             | 2011             | 2010
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 7457           | $ 7463           | $ 6930
operating profit    | 1256             | 1069             | 973
operating margins   | 16.8% ( 16.8 % ) | 14.3% ( 14.3 % ) | 14.0% ( 14.0 % )
backlog at year-end | 14700            | 14400            | 12800


united parcel service , inc.
 subsidiaries notes to consolidated financial statements 2014 ( continued ) ups class b common stock first or last day of each quarterly period.
 employees purchased 1. 8 , 1. 9 , 2. 0 million shares at average prices of $ 64. 20 , $ 66. 64 , $ 64. 54 per share during 2007, 2006  2005  respectively.
 compensation cost measured for fair value of employees 2019 purchase rights under discounted employee stock purchase plan using black-scholes option pricing model.
 weighted average assumptions calculated weighted average fair value of employees 2019 purchase rights granted follows:.
 includes 10% ( 10 % ) discount from market price.
 expected volatilities based on historical price volatility on publicly-traded class b shares.
 expected dividend yield based on recent historical dividend yields for stock  changes in dividend policy.
 risk-free interest rate based on term structure of interest rates on.
 treasury securities at time of option grant.
 expected life represents three month option period applicable to purchase rights.
 note 12.
 segment geographic information report operations in three segments :.
 domestic package operations , international package operations  supply chain & freight operations.
 package operations represent most significant business broken into regional operations around world.
 regional operations managers responsible for both domestic and export operations within geographic area.
.
 domestic package operations include time-definite delivery of letters  documents  packages throughout united states.
 international package international package operations include delivery to more than 200 countries and territories worldwide including shipments wholly outside united states shipments with origin or distribution outside united states.
 international package reporting segment includes operations of europe , asia  americas operating segments.
supply chain & freight includes forwarding and logistics operations , ups freight  other aggregated business units.
 our forwarding and logistics business provides services in more than 175 countries territories worldwide includes supply chain design and management  freight distribution  customs brokerage  mail and consulting services.
 ups freight offers ltl and tl services to customers in north america.
 other aggregated business units include mail boxes , etc.
 ( franchisor of mail boxes .
 ups store ) ups capital.

| 2007               | 2006               | 2005
----------------------------------------------- | ------------------ | ------------------ | ------------------
expected dividend yield                         | 2.13% ( 2.13 % )   | 1.79% ( 1.79 % )   | 1.62% ( 1.62 % )
risk-free interest rate                         | 4.60% ( 4.60 % )   | 4.59% ( 4.59 % )   | 2.84% ( 2.84 % )
expected life in years                          | 0.25               | 0.25               | 0.25
expected volatility                             | 16.26% ( 16.26 % ) | 15.92% ( 15.92 % ) | 15.46% ( 15.46 % )
weighted average fair value of purchase rights* | $ 9.80             | $ 10.30            | $ 9.46


contractual obligations following table includes aggregated information about citigroup 2019s contractual obligations impact its short- and long-term liquidity and capital needs.
 table includes information about payments due under specified contractual obligations , aggregated by type of contractual obligation.
 includes maturity profile of company 2019s consolidated long-term debt , operating leases other long-term liabilities.
 company 2019s capital lease obligations included in purchase obligations in table.
 citigroup 2019s contractual obligations include purchase obligations enforceable and legally binding for company.
 for table purchase obligations included through termination date of agreements, even if contract renewable.
 many purchase agreements for goods or services include clauses allow company to cancel agreement with specified notice ; that impact not included in table ( unless citigroup notified counterparty of intention to terminate agreement ).
 other liabilities reflected on company 2019s consolidated balance sheet include obligations for goods and services already received  litigation settlements  uncertain tax positions other long-term liabilities incurred and will be paid in cash.
 excluded from table are obligations generally short term in nature , including deposit liabilities securities sold under agreements to repurchase.
 table excludes certain insurance and investment contracts subject to mortality and morbidity risks or without defined maturities timing of payments and withdrawals uncertain.
 liabilities related to these insurance and investment contracts included on consolidated balance sheet as insurance policy and claims reserves , contractholder funds , separate and variable accounts.
 citigroup 2019s funding policy for pension plans is to fund to minimum amounts required by applicable laws and regulations.
 at december 31 , 2008  no minimum required contributions  no contributions currently planned for u. s.
 pension plans.
no amounts included in table below for future contributions to u. s.
 pension plans.
 for non-u. s.
 plans  discretionary contributions in 2009 anticipated to be approximately $ 167 million amount included in purchase obligations in table below.
 estimated pension plan contributions subject to change contribution decisions affected by factors market performance regulatory legal requirements management 2019s ability to change funding policy.
 for additional information company 2019s retirement benefit obligations see note 9 to consolidated financial statements on page 144.
 ( 1 ) for additional information about long-term debt and trust preferred securities see note 20 to consolidated financial statements on page 169.
 ( 2 ) relates to accounts payable and accrued expenses included in other liabilities in company 2019s consolidated balance sheet.
 included are various litigation settlements.

in millions of dollars at year end                                                | contractual obligations by year 2009 | contractual obligations by year 2010 | contractual obligations by year 2011 | contractual obligations by year 2012 | contractual obligations by year 2013 | contractual obligations by year thereafter
--------------------------------------------------------------------------------- | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------ | ------------------------------------------
long-term debt obligations ( 1 )                                                  | $ 88472                              | $ 41431                              | $ 42112                              | $ 27999                              | $ 25955                              | $ 133624
operating lease obligations                                                       | 1470                                 | 1328                                 | 1134                                 | 1010                                 | 922                                  | 3415
purchase obligations                                                              | 2214                                 | 750                                  | 700                                  | 444                                  | 395                                  | 1316
other liabilities reflected on the company 2019s consolidated balance sheet ( 2 ) | 38221                                | 792                                  | 35                                   | 36                                   | 38                                   | 3193
total                                                                             | $ 130377                             | $ 44301                              | $ 43981                              | $ 29489                              | $ 27310                              | $ 141548


( 1 ) represents anticipated repayment date ; final legal maturity date march 15 , 2043.
 ( 2 ) represents anticipated repayment date final legal maturity date march 15 , 2048.
 ( 3 ) acquisition of mipt october 1 , 2013 assumed approximately $ 1. 49 billion aggregate principal amount of secured notes , $ 250. 0 million repaid in august 2014.
 gtp notes anticipated repayment dates beginning june 15 , 2016.
 ( 4 ) assumed acquisition of br towers denominated in brl.
 br towers debenture amortizes through october 2023.
 br towers credit facility amortizes through january 15, ( 5 ) assumed unison acquisition anticipated repayment dates april 15 , 2017 , april 15 , 2020 april 15 , 2020  final maturity date april 15 , 2040.
 ( 6 ) denominated in mxn.
 ( 7 ) denominated in zar amortizes through march 31 , 2020.
 ( 8 ) denominated in cop amortizes through april 24 , 2021.
 ( 9 ) reflects balances owed to joint venture partners in ghana and uganda.
 ghana loan denominated in ghs uganda loan denominated in usd.
 ( 10 ) on february 11, 2015  redeemed outstanding 4. 625% ( 4. 625 % ) notes terms.
 ( 11 ) includes payments under non-cancellable initial terms payments for certain renewal periods at option , expect to renew failure to renew could result in loss of communications sites and related revenues from tenant leases.
( 12 ) represents asset retirement obligations excludes other non-current liabilities in consolidated balance sheet primarily our straight-line rent liability for cash payments included in operating lease payments and unearned revenue not payable in cash.
 ( 13 ) excludes $ 26. 6 million of liabilities for unrecognized tax positions and $ 24. 9 million of accrued income tax related interest and penalties in consolidated balance sheet uncertain when and if amounts may be settled.
 settlement amounts could require use of cash flows from operations.
 expect unrecognized tax benefits to change over next 12 months if certain tax matters settle with applicable taxing jurisdiction during this timeframe.
 based on status of items uncertainty with outcome timing of audit settlements unable to estimate impact of such changes if to previously recorded uncertain tax positions.
 off-balance sheet arrangements.
 no material off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) ( ii ) of sec regulation s-k.
 interest rate swap agreements.
 entered into interest rate swap agreements to manage exposure to variability in interest rates on debt in colombia and south africa.
 all interest rate swap agreements designated as cash flow hedges have aggregate notional amount of $ 79. 9 million , interest rates ranging from 5. 74% ( 5. 74 % ) to 7. 83% ( 7. 83 % ) expiration dates through april 2021.
 in february 2014  repaid costa rica loan terminated associated interest rate swap agreements.
 in connection with entering into colombian credit facility in october 2014 , terminated pre-existing interest rate

contractual obligations                        | 2015      | 2016      | 2017      | 2018      | 2019      | thereafter | total
---------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------- | ----------
long-term obligations excluding capital leases | 888810    | 753045    | 700608    | 1787451   | 3159286   | 7188751    | 14477951
cash interest expense                          | 550000    | 517000    | 485000    | 399000    | 315000    | 654000     | 2920000
capital lease payments ( including interest )  | 15589     | 14049     | 12905     | 12456     | 10760     | 173313     | 239072
total debt service obligations                 | 1454399   | 1284094   | 1198513   | 2198907   | 3485046   | 8016064    | 17637023
operating lease payments ( 11 )                | 574438    | 553864    | 538405    | 519034    | 502847    | 4214600    | 6903188
other non-current liabilities ( 12 ) ( 13 )    | 11082     | 20480     | 5705      | 13911     | 4186      | 1860071    | 1915435
total                                          | $ 2039919 | $ 1858438 | $ 1742623 | $ 2731852 | $ 3992079 | $ 14090735 | $ 26455646


aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2016 , 2015 , and 2014 reconciliation of beginning and ending amounts of unrecognized tax benefits for periods indicated ( in millions ) :.
 company and subsidiaries currently under examination by relevant taxing authorities for various tax years.
 company regularly assesses potential outcome of these examinations in each taxing jurisdictions when determining adequacy of amount unrecognized tax benefit recorded.
 difficult to predict final outcome or timing of resolution of uncertain tax position , we believe we have appropriately accrued for our uncertain tax benefits.
 audit outcomes and timing of audit settlements future events impact previously recorded unrecognized tax benefits and range of anticipated increases or decreases in unrecognized tax benefits subject to significant uncertainty.
 possible that ultimate outcome of current or future examinations may exceed our provision for current unrecognized tax benefits in amounts could be material be estimated as of december 31 , 2016.
 effective tax rate and net income in future period could be materially impacted.
 22.
 discontinued operations brazil distribution 2014 due to portfolio evaluation in first half 2016  management decided to pursue strategic shift of distribution companies in brazil , aes sul and eletropaulo.
 disposal of sul completed in october 2016.
 in december 2016 , eletropaulo underwent corporate restructuring expected to provide more liquidity of shares.
 aes continuing to pursue strategic options for eletropaulo to complete strategic shift to reduce aes 2019 exposure to brazilian distribution business  including preparation for listing shares into novo mercado , listing segment of brazilian stock exchange with highest standards of corporate governance.
 company executed agreement for sale of wholly-owned subsidiary aes sul in june 2016.
reported results of operations financial position of aes sul as discontinued operations in consolidated financial statements for all periods.
 meeting held-for-sale criteria company recognized after tax loss of $ 382 million pretax impairment charge of $ 783 million offset by tax benefit of $ 266 million related to impairment sul long lived assets tax benefit $ 135 million for deferred taxes related to investment in aes sul.
 prior to impairment charge in second quarter carrying value of aes sul asset group of $ 1. 6 billion greater than approximate fair value less costs to sell.
 impairment charge limited to carrying value long lived assets of aes sul disposal group.
 on october 31 , 2016 company completed sale of aes sul received final proceeds less costs to sell of $ 484 million excluding contingent consideration.
 upon disposal sul incurred additional after- tax loss on sale of $ 737 million.
 cumulative impact to earnings of impairment and loss on sale was $ 1. 1 billion.
 includes reclassification of approximately $ 1 billion of cumulative translation losses net reduction to company 2019s stockholders 2019 equity of $ 92 million.
 pretax loss attributable to aes for years ended december 31, 2016 and 2015 was $ 1. 4 billion and $ 32 million  respectively.
 2019s pretax gain attributable to aes for year ended december 31 , 2014 was $ 133 million.
 prior to classification as discontinued operations sul reported in brazil sbu reportable segment.
 discussed in note 1 2014general summary of significant accounting policies effective july 1 , 2014 company prospectively adopted asu no.
 2014-08.
 discontinued operations prior to adoption.
 2014-08 include results of cameroon , saurashtra various u.
wind projects each sold in first half cameroon 2014 september 2013  company executed agreements for sale of 56% ( 56 % ) equity interests in businesses cameroon : sonel , integrated utility , kribi , gas and light fuel oil plant , dibamba , heavy

december 31,                                | 2016       | 2015       | 2014
------------------------------------------- | ---------- | ---------- | ----------
balance at january 1                        | $ 373      | $ 394      | $ 392
additions for current year tax positions    | 8          | 7          | 7
additions for tax positions of prior years  | 1          | 12         | 14
reductions for tax positions of prior years | -1 ( 1 )   | -7 ( 7 )   | -2 ( 2 )
effects of foreign currency translation     | 2          | -7 ( 7 )   | -3 ( 3 )
settlements                                 | -13 ( 13 ) | -19 ( 19 ) | -2 ( 2 )
lapse of statute of limitations             | -1 ( 1 )   | -7 ( 7 )   | -12 ( 12 )
balance at december 31                      | $ 369      | $ 373      | $ 394


management 2019s discussion analysis 78 jpmorgan chase & co. /2018 form 10-k treasury and cio overview treasury cio responsible for measuring monitoring reporting managing firm 2019s liquidity  funding capital  structural interest rate foreign exchange risks.
 risks managed by treasury and cio arise from activities by firm 2019s four major reportable business segments serve client bases generate on- and off- balance sheet assets and liabilities.
 treasury and cio achieve firm 2019s asset-liability management objectives by investing in high- quality securities managed for longer-term firm 2019s investment securities portfolio.
 treasury and cio use derivatives to meet firm 2019s asset- liability management objectives.
 for further information on derivatives refer to note 5.
 treasury and cio manage firm 2019s cash position through depositing at central banks investing in short-term instruments.
 for information on liquidity funding risk  refer to liquidity risk management on pages 95 2013100.
 for information on interest rate  foreign exchange other risks  refer to market risk management on pages 124 2013131.
 investment securities portfolio consists of agency nonagency mortgage-backed securities .
 non-u.
 government securities  obligations of u.
 states municipalities  other abs corporate debt securities.
 at december 31 , 2018  investment securities portfolio was $ 260. 1 billion  average credit rating of securities portfolio was aa+ ( based upon external ratings where available where not available based primarily internal ratings correspond to ratings as defined by s&p and moody 2019s ).
 refer to note 10 for further information on firm 2019s investment securities portfolio.
income statement balance sheet data year ended december 31  ( in millions ) 2018 2017 2016 investment securities gains/ ( losses ) $ ( 395 ) $ ( 78 ) $ 132 available-for-sale ( 201cafs 201d ) investment securities ( average ) 203449 219345 226892 held-to-maturity ( 201chtm 201d ) investment securities ( average ) 31747 47927 51358 investment securities portfolio ( average ) 235197 267272 278250 afs investment securities ( period-end ) 228681 200247 236670 htm investment securities period-end ) 31434 47733 50168 investment securities portfolio ( period 2013end ) 260115 247980 286838 permitted new hedge accounting guidance firm elected transfer certain investment securities from htm to afs first quarter of 2018.
 additional information refer to notes 1 and 10.
 management 2019s discussion analysis 78 jpmorgan chase & co. /2018 form 10-k treasury and cio overview treasury cio responsible for measuring monitoring reporting managing firm 2019s liquidity  funding capital  structural interest rate foreign exchange risks.
 risks managed by treasury and cio arise from activities firm 2019s four major reportable business segments serve client bases generate on- and off- balance sheet assets liabilities.
 treasury cio achieve firm asset-liability management objectives investing in high- quality securities managed for longer-term firm investment securities portfolio.
 treasury cio use derivatives meet firm 2019s asset- liability management objectives.
 further information on derivatives refer to note 5.
 treasury and cio manage firm 2019s cash position through depositing at central banks investing in short-term instruments.
 further information on liquidity funding risk refer to liquidity risk management on pages 95 2013100.
information on interest rate foreign exchange other risks refer to market risk management pages 124 2013131.
 investment securities portfolio consists of agency nonagency mortgage-backed securities u.
 non-u.
 government securities obligations of u.
 states municipalities other abs corporate debt securities.
 december 31 , 2018 investment securities portfolio was $ 260. 1 billion  average credit rating securities portfolio aa+ ( based external ratings where available not available primarily internal ratings correspond ratings defined by s&p moody 2019s ).
 refer to note 10 for further information firm 2019s investment securities portfolio.
 selected income statement balance sheet data year ended december 31  ( in millions ) 2018 2017 2016 investment securities gains/ ( losses ) $ ( 395 ) $ ( 78 ) $ 132 available-for-sale ( 201cafs 201d ) investment securities ( average ) 203449 219345 226892 held-to-maturity ( 201chtm 201d ) investment securities average ) 31747 47927 51358 investment securities portfolio ( average ) 235197 267272 278250 afs investment securities period-end ) 228681 200247 236670 htm investment securities period-end ) 31434 47733 50168 investment securities portfolio period 2013end ) 260115 247980 286838 permitted new hedge accounting guidance firm elected transfer certain investment securities from htm to afs first quarter of 2018.
 additional information refer to notes 1 10.

as of or for the year ended december 31 ( in millions )               | 2018           | 2017         | 2016
--------------------------------------------------------------------- | -------------- | ------------ | ------
investment securities gains/ ( losses )                               | $ -395 ( 395 ) | $ -78 ( 78 ) | $ 132
available-for-sale ( 201cafs 201d ) investment securities ( average ) | 203449         | 219345       | 226892
held-to-maturity ( 201chtm 201d ) investment securities ( average )   | 31747          | 47927        | 51358
investment securities portfolio ( average )                           | 235197         | 267272       | 278250
afs investment securities ( period-end )                              | 228681         | 200247       | 236670
htm investment securities ( period-end )                              | 31434          | 47733        | 50168
investment securities portfolio ( period 2013end )                    | 260115         | 247980       | 286838


maturity requirements on long-term debt as of december 31 , 2018 by year are follows ( in thousands ) : years ending december 31.
 credit facility party to credit facility agreement with bank of america , n. a. , as administrative agent  syndicate of financial institutions as lenders other agents ( amended 201ccredit facility 201d ).
 as of december 31 , 2018  credit facility provided for secured financing comprised of $ 1. 5 billion revolving credit facility ( 201crevolving credit facility 201d ) ; ii ) $ 1. 5 billion term loan ( 201cterm a loan 201d ), iii ) $ 1. 37 billion term loan ( 201cterm a-2 loan 201d ) iv ) $ 1. 14 billion term loan facility ( 201cterm b-2 loan 201d ) v ) $ 500 million term loan ( 201cterm b-4 loan 201d ).
 substantially all assets of domestic subsidiaries pledged as collateral under credit facility.
 borrowings outstanding under credit facility as of december 31 , 2018 reflect amounts borrowed for acquisitions and other activities completed in 2018  including reduction to interest rate margins to term a loan  term a-2 loan  term b-2 loan revolving credit facility  extension of maturity dates of term a loan term a-2 loan revolving credit facility increase in total financing capacity credit facility to approximately $ 5. 5 billion in june 2018.
 in october 2018  entered into additional term loan under credit facility amount of $ 500 million ( 201cterm b-4 loan 201d ).
 used proceeds from term b-4 loan to pay down portion of balance outstanding under revolving credit facility.
 credit facility provides for interest rate  at our election of either libor or base rate  each case plus margin.
as of december 31 , 2018 interest rates on term a loan term a-2 loan term b-2 loan term b-4 loan were 4. 02% ( 4. 02 % ) , 4. 01% ( 4. 01 % ) , 4. 27% ( 4. 27 % ) and 4. 27% ( 4. 27 % )  interest rate on revolving credit facility was 3. 92% ( 3. 92 % ).
 required to pay quarterly commitment fee unused portion of revolving credit facility at applicable rate per annum ranging from 0. 20% ( 0. 20 % ) to 0. 30% ( 0. 30 % ) depending on leverage ratio.
 term a loan term a-2 loan mature revolving credit facility expires on january 20 , 2023.
 term b-2 loan matures april 22 , 2023.
 term b-4 loan matures october 18 , 2025.
 term a loan and term a-2 loan principal amounts must be repaid in quarterly installments 0. 625% ( 0. 625 % ) of principal through june 2019  increasing to 1. 25% ( 1. 25 % ) of principal through june 2021  to 1. 875% ( 1. 875 % ) of principal through june 2022 to 2. 50% ( 2. 50 % ) of principal through december 2022  remaining principal balance due upon maturity in january 2023.
 term b-2 loan principal repaid in quarterly installments 0. 25% ( 0. 25 % ) of principal through march 2023  remaining principal balance due upon maturity in april 2023.
 term b-4 loan principal repaid in quarterly installments 0. 25% ( 0. 25 % ) of principal through september 2025  remaining principal balance due upon maturity in october 2025.
 may issue standby letters of credit of up to $ 100 million under revolving credit facility.
 outstanding letters of credit reduce borrowings available.
borrowings under revolving credit facility limited by covenants under 201ccompliance with covenants. 201d total available commitments under revolving credit facility at december 31, 2018 were $ 783. 6 million.
 global payments inc.
 | 2018 form 10-k annual report 2013 85

2019                | $ 124176
------------------- | ---------
2020                | 159979
2021                | 195848
2022                | 267587
2023                | 3945053
2024 and thereafter | 475000
total               | $ 5167643