repurchase programs.
 utilized cash from operating activities $ 57. 0 million in cash proceeds from employee stock compensation plans borrowings under credit facilities to fund repurchases.
 during 2008  borrowed $ 330. 0 million from existing credit facilities to fund stock repurchases partially fund acquisition of abbott spine.
 may use excess cash or borrow from credit facilities to repurchase additional common stock under $ 1. 25 billion program expires december 31 , 2009.
 five year $ 1350 million revolving , multi- currency  senior unsecured credit facility maturing november 30, 2012 ( 201csenior credit facility 201d ).
 had $ 460. 1 million outstanding under senior credit facility at december 31, 2008 availability of $ 889. 9 million.
 senior credit facility contains provisions can increase line to $ 1750 million request maturity date extended for two additional one-year periods.
 we wholly owned foreign subsidiaries are borrowers under senior credit facility.
 borrowings senior credit facility used for general corporate purposes bear interest at libor- based rate plus applicable margin determined by reference to senior unsecured long-term credit rating amounts drawn under senior credit facility at alternate base rate or fixed rate determined through competitive bid process.
 senior credit facility contains customary affirmative and negative covenants events of default for unsecured financing arrangement including limitations on consolidations  mergers sales of assets.
 financial covenants include maximum leverage ratio of 3. 0 to 1. 0 minimum interest coverage ratio of 3. 5 to 1. 0.
 if fall below investment grade credit rating  additional restrictions result including restrictions on investments payment of dividends stock repurchases.
 in compliance with all covenants under senior credit facility as of december 31 , 2008.
commitments under senior credit facility subject to certain fees including facility and utilization fee.
 senior credit facility rated a- by standard & poor 2019s ratings services not rated by moody 2019s investors 2019 service .
 notwithstanding recent interruptions in global credit markets of date report believe access to senior credit facility not impaired.
 in october 2008  funded portion of acquisition of abbott spine with approximately $ 110 million of new borrowings under senior credit facility.
 each lenders under senior credit facility funded portion of new borrowings in accordance with commitment percentage.
 available uncommitted credit facilities totaling $ 71. 4 million.
 management believes cash flows from operations together with available borrowings under senior credit facility sufficient to meet expected working capital capital expenditure debt service needs.
 should investment opportunities arise believe earnings  balance sheet cash flows will allow to obtain additional capital if necessary.
 contractual obligations entered into contracts with third parties business require future payments.
 table illustrates contractual obligations ( in millions ) : contractual obligations total 2009.
 long-term income taxes payable 116. 9 2013 69. 6 24. 9 22. 4 other long-term liabilities 237. 0 2013 30. 7 15. 1 191. 2 total contractual obligations $ 1020. 1 $ 85. 9 $ 158. 9 $ 531. 8 $ 243. 5 critical accounting estimates financial results affected by selection application of accounting policies and methods.
 significant accounting policies require management 2019s judgment discussed below.
 excess inventory and instruments 2013 must determine as of each balance sheet date how much if of inventory may prove to be unsaleable or unsaleable at carrying cost.
 must determine if instruments on hand will be put to productive use or remain undeployed as result of excess supply.
reserves established to adjust inventory instruments to net realizable value.
 determine appropriate level of reserves evaluate current stock levels relation to historical expected patterns of demand for all products instrument systems components.
 basis for determination generally same for all inventory instrument items categories except for work-in-progress inventory recorded at cost.
 obsolete or discontinued items destroyed written off.
 management evaluates need for changes to valuation reserves based on market conditions competitive offerings other factors regular basis.
 income taxes 2013 estimate income tax expense income tax liabilities assets by taxable jurisdiction.
 realization of deferred tax assets in each taxable jurisdiction dependent on ability to generate future taxable income sufficient to realize benefits.
 evaluate deferred tax assets ongoing basis provide valuation allowances if 201cmore likely not deferred tax benefit not realized.
 federal income taxes provided on portion of income of foreign subsidiaries expected to be remitted to u. s.
 operate within numerous taxing jurisdictions.
 subject to regulatory z i m m e r h o l d i n g s , i n c.
 2 0 0 8 f o r m 1 0 - k a n n u a l r e p o r t %%transmsg*** transmitting job : c48761 pcn : 031000000 ***%%pcmsg|31|00013|yes|no|02/24/2009 06:10|0|0|page is valid , no graphics -- color : d|

contractual obligations        | total    | 2009   | 2010 and 2011 | 2012 and 2013 | 2014 and thereafter
------------------------------ | -------- | ------ | ------------- | ------------- | -------------------
long-term debt                 | $ 460.1  | $ 2013 | $ 2013        | $ 460.1       | $ 2013
operating leases               | 149.3    | 38.2   | 51.0          | 30.2          | 29.9
purchase obligations           | 56.8     | 47.7   | 7.6           | 1.5           | 2013
long-term income taxes payable | 116.9    | 2013   | 69.6          | 24.9          | 22.4
other long-term liabilities    | 237.0    | 2013   | 30.7          | 15.1          | 191.2
total contractual obligations  | $ 1020.1 | $ 85.9 | $ 158.9       | $ 531.8       | $ 243.5


2006  board of directors approved projected $ 3. 2 billion expansion of garyville , louisiana refinery by 180 mbpd to 425 mbpd increase total refining capacity to 1. 154 million barrels per day ( 2018 2018mmbpd 2019.
 recently received air permit approval from louisiana department of environmental quality for project construction expected to begin in mid-2007 startup planned for fourth quarter of 2009.
 commenced front-end engineering and design 2018 2018feed 2019 2019 for potential heavy oil upgrading project at detroit refinery allow process increased volumes of canadian oil sands production undertaking feasibility study for similar upgrading project at catlettsburg refinery.
 supplier of gasoline and distillates to resellers and consumers within market area in midwest , upper great plains southeastern united states.
 in 2006  refined product sales volumes ( excluding matching buy/sell transactions ) totaled 21. 5 billion gallons , or 1. 401 mmbpd.
 average sales price of refined products was $ 77. 76 per barrel for 2006.
 following table sets forth refined product sales by product group average sales price for each last three years.
 refined product sales ( thousands of barrels per day ) 2006 2005 2004.
 a ) includes matching buy/sell volumes of 24 mbpd , 77 mbpd 71 mbpd in 2006 , 2005 2004.
 on april 1 , 2006  changed accounting for matching buy/sell arrangements new accounting standard.
 change resulted in lower refined product sales volumes for remainder of 2006 than reported under previous accounting practices.
 see note 2 to consolidated financial statements.
wholesale distribution of petroleum products to private brand marketers large commercial and industrial consumers sales in spot market accounted for 71 percent of refined product sales volumes in 2006.
 sold 52 percent gasoline volumes 89 percent distillates volumes wholesale spot market.
 half of propane sold into home heating market balance purchased by industrial consumers.
 propylene , cumene  aromatics  aliphatics  sulfur domestically marketed to customers in chemical industry.
 base lube oils , maleic anhydride  slack wax  extract pitch sold throughout united states canada pitch products exported worldwide.
 market asphalt through owned and leased terminals throughout midwest upper great plains southeastern united states.
 customer base includes approximately 800 asphalt-paving contractors  government entities ( states counties cities townships ) asphalt roofing shingle manufacturers.
 blended 35 mbpd of ethanol into gasoline in 2006.
 in 2005 and 2004  blended 35 mbpd and 30 mbpd of ethanol.
 expansion or contraction of ethanol blending program driven by economics of ethanol supply changes in government regulations.
 sell reformulated gasoline in parts marketing territory  primarily chicago , illinois ; louisville , kentucky ; northern kentucky milwaukee , wisconsin  sell low-vapor-pressure gasoline in nine states.
 as of december 31 , 2006  supplied petroleum products to about 4200 marathon branded retail outlets primarily in ohio , michigan , indiana , kentucky illinois.
branded retail outlets in florida georgia minnesota wisconsin west virginia tennessee virginia north carolina pennsylvania alabama south carolina.
 sales to marathon brand jobbers dealers accounted for 14 percent refined product sales volumes in 2006.
 ssa sells gasoline diesel fuel through company retail outlets.
 sales refined products through ssa retail outlets accounted for 15 percent refined product sales volumes in 2006.
 as of december 31 , 2006 ssa had 1636 retail outlets in nine states sold petroleum products convenience store merchandise services under brand names 2018 2018speedway 2019 2019 2018 2018superamerica. 2019 ssa 2019s revenues from non-petroleum merchandise totaled $ 2. 7 billion in 2006 compared with $ 2. 5 billion in 2005.
 profit levels from sale

( thousands of barrels per day )     | 2006    | 2005    | 2004
------------------------------------ | ------- | ------- | -------
gasoline                             | 804     | 836     | 807
distillates                          | 375     | 385     | 373
propane                              | 23      | 22      | 22
feedstocks and special products      | 106     | 96      | 92
heavy fuel oil                       | 26      | 29      | 27
asphalt                              | 91      | 87      | 79
total ( a )                          | 1425    | 1455    | 1400
average sales price ( $ per barrel ) | $ 77.76 | $ 66.42 | $ 49.53


prepare estimates of research and development costs for projects in clinical development include direct costs and allocations of certain costs indirect labor , non-cash compensation expense  manufacturing and other costs related to activities benefit multiple projects under collaboration with bayer healthcare , portion of bayer healthcare 2019s vegf trap-eye development expenses we obligated to reimburse.
 estimates of research and development costs for clinical development programs shown below : project costs year ended december 31 , increase ( decrease ) ( in millions ) 2009 2008.
 for reasons described above in results of operations for years ended december 31 , 2010 2009  under caption 201cresearch and development expenses 201d  due to variability in costs necessary to develop pharmaceutical product uncertainties related to future indications studied, estimated cost and scope of projects ability to obtain governmental approval for commercialization , accurate meaningful estimates of total cost to bring product candidates to market not available.
 currently unable to reasonably estimate if product candidates will generate material product revenues and net cash inflows.
 in 2008  received fda approval for arcalyst ae for treatment of caps , group of rare  inherited auto-inflammatory diseases affect small group of people.
 currently do not expect to generate material product revenues and net cash inflows from sale of arcalyst ae for treatment of caps.
 selling , general , and administrative expenses expenses increased to $ 52. 9 million in 2009 from $ 48. 9 million in 2008.
 in 2009  incurred higher compensation expense  higher patent-related costs  higher facility-related costs due to increases in administrative headcount  iv higher patient assistance costs related to arcalyst ae.
increases offset by lower marketing costs related to arcalyst ae  decrease in administrative recruitment costs lower professional fees related to corporate matters.
 cost of goods sold during 2008  began recognizing revenue and cost of goods sold from net product sales of arcalyst ae.
 cost of goods sold in 2009 and 2008 was $ 1. 7 million and $ 0. 9 million  respectively consisted primarily of royalties and other period costs related to arcalyst ae commercial supplies.
 in 2009 and 2008 arcalyst ae shipments to customers consisted of supplies of inventory manufactured expensed as research and development costs prior to fda approval in 2008 costs of supplies not included in costs of goods sold.
 other income and expense investment income decreased to $ 4. 5 million in 2009 from $ 18. 2 million in 2008 due to lower yields on lower balances of cash and marketable securities.
 in 2009 and 2008  deterioration in credit quality of specific marketable securities in investment portfolio subjected to risk of not to recover these securities 2019 carrying values.
 in 2009 and 2008 recognized charges of $ 0. 1 million and $ 2. 5 million  related to these securities considered other than temporarily impaired.
 in 2009 and 2008 charges wholly or partly offset by realized gains of $ 0. 2 million and $ 1. 2 million  on sales of marketable securities during year.

project costs ( in millions )                     | project costs 2009 | 2008    | ( decrease )
------------------------------------------------- | ------------------ | ------- | ------------
arcalyst ae                                       | $ 67.7             | $ 39.2  | $ 28.5
vegf trap-eye                                     | 109.8              | 82.7    | 27.1
aflibercept                                       | 23.3               | 32.1    | -8.8 ( 8.8 )
regn88                                            | 36.9               | 21.4    | 15.5
other antibody candidates in clinical development | 74.4               | 27.4    | 47.0
other research programs & unallocated costs       | 86.7               | 72.1    | 14.6
total research and development expenses           | $ 398.8            | $ 274.9 | $ 123.9


contributions and future benefit payments we expect to make contributions of $ 28. 1 million to our defined benefit , other postretirement, postemployment benefits plans in fiscal 2009.
 actual 2009 contributions could exceed our current projections , as influenced by our decision to undertake discretionary funding of our benefit trusts versus other competing investment priorities future changes in government requirements.
 estimated benefit payments , which reflect expected future service , as appropriate , are expected to be paid from fiscal 2009-2018 as follows : in millions defined benefit pension postretirement benefit plans gross payments medicare subsidy receipts postemployment benefit.
 defined contribution plans the general mills savings plan is a defined contribution plan that covers salaried and nonunion employees.
 it had net assets of $ 2309. 9 million as of may 25 , 2008 and $ 2303. 0 million as of may 27 , 2007. this plan is a 401 ( k ) savings plan that includes a number of investment funds and an employee stock ownership plan ( esop ).
 we sponsor another savings plan for certain hourly employees with net assets of $ 16. 0 million as of may 25 , 2008.
 our total recognized expense related to defined contribution plans was $ 61. 9 million in fiscal 2008 , $ 48. 3 million in fiscal 2007 , and $ 45. 5 million in fiscal 2006.
esop purchased our common stock with funds borrowed from guaranteed by us. esop shares included in net shares outstanding for calculating eps.
 esop 2019s third-party debt repaid on june 30 , 2007.
 esop 2019s only assets are our common stock and temporary cash balances. esop 2019s share of total defined contribution expense was $ 52. 3 million in fiscal 2008 $ 40. 1 million in fiscal 2007 $ 37. 6 million in fiscal 2006.
 esop 2019s expensewas calculated by 201cshares allocated 201dmethod.
 esop used our common stock to convey benefits to employees align employee interests with stockholders. wematched percentage of employee contributions to general mills savings plan with base match plus variable year end match depended on annual results.
 employees received our match in form of common stock.
 cash contribution to esop calculated to pay off enough debt to release sufficient shares to make match.
 esop used cash contributions to plan plus dividends received on leveraged shares to make principal and interest payments on esop 2019s debt.
 loan payments made shares became unencumbered by debt committed to be allocated.
 esop allocated shares to individual employee accounts on basis of match of employee payroll savings ( contributions plus reinvested dividends received on allocated shares.
 esop incurred net interest of less than $ 1. 0 million in each fiscal 2007 and 2006.
 used dividends of $ 2. 5 million in fiscal 2007 and $ 3. 9 million in 2006 with our contributions of less than $ 1. 0 million in fiscal 2007 and 2006 to make interest and principal payments.
 number of shares of our common stock allocated to participants in esop was 5. 2 million as of may 25 , 2008  5.4 million may 27  2007.
 annual report 2008

in millions    | defined benefit pension plans | other postretirement benefit plans gross payments | medicare subsidy receipts | postemployment benefit plans
-------------- | ----------------------------- | ------------------------------------------------- | ------------------------- | ----------------------------
2009           | $ 176.3                       | $ 56.0                                            | $ -6.1 ( 6.1 )            | $ 16.6
2010           | 182.5                         | 59.9                                              | -6.7 ( 6.7 )              | 17.5
2011           | 189.8                         | 63.3                                              | -7.3 ( 7.3 )              | 18.1
2012           | 197.5                         | 67.0                                              | -8.0 ( 8.0 )              | 18.8
2013           | 206.6                         | 71.7                                              | -8.7 ( 8.7 )              | 19.4
2014 2013 2018 | 1187.3                        | 406.8                                             | -55.3 ( 55.3 )            | 106.3


adjusted grid ( 201cpricing grid 201d ) based on consolidated leverage ratio ranges between 1. 00% ( 1. 00 % ) to 1. 25% ( 1. 25 % ) for adjusted libor loans 0. 00% ( 0. 00 % ) to 0. 25% ( 0. 25 % ) for alternate base rate loans.
 weighted average interest rate under outstanding term loans and revolving credit facility borrowings was 1. 6% ( 1. 6 % ) and 1. 3% ( 1. 3 % ) during years ended december 31 , 2016 and 2015.
 company pays commitment fee on average daily unused amount revolving credit facility certain fees letters of credit.
 as of december 31 , 2016 commitment fee was 15. 0 basis points.
 company incurred deferred $ 3. 9 million in financing costs credit agreement.
 3. 250% ( 3. 250 % ) senior notes in june 2016 issued $ 600. 0 million aggregate principal amount of 3. 250% ( 3. 250 % ) senior unsecured notes due june 15 , 2026 ( 201cnotes 201d ).
 proceeds used to pay down amounts outstanding under revolving credit facility.
 interest payable semi-annually on june 15 and december 15 beginning december 15 , 2016.
 prior to march 15 , 2026 ( three months prior to maturity date notes ) company may redeem some or all notes any time at redemption price equal to 100% ( % ) of principal amount of notes redeemed or 201cmake-whole 201d amount applicable to notes described in indenture governing notes plus accrued and unpaid interest to excluding redemption date.
or after march 15 , 2026 ( three months prior to maturity date of notes )  company may redeem some or all notes at any time time to time at redemption price equal to 100% ( 100 % ) of principal amount of notes to be redeemed plus accrued and unpaid interest to excluding redemption date.
 indenture governing notes contains covenants limitations restrict company 2019s ability ability of certain subsidiaries to create or incur secured indebtedness enter into sale and leaseback transactions company ability to consolidate, merge or transfer all or properties or assets to another person subject to material exceptions described in indenture.
 company incurred and deferred $ 5. 3 million in financing costs in connection with notes.
 other long term debt in december 2012  company entered into $ 50. 0 million recourse loan collateralized by land , buildings tenant improvements comprising company 2019s corporate headquarters.
 loan has seven year term maturity date of december 2019.
 loan bears interest at one month libor plus margin of 1. 50% ( 1. 50 % )  allows for prepayment without penalty.
 loan includes covenants and events of default consistent with company 2019s credit agreement.
 loan requires prior approval of lender for certain matters related to property including transfers of interest in property.
 as of december 31 , 2016 and 2015  outstanding balance on loan was $ 42. 0 million and $ 44. 0 million .
 weighted average interest rate on loan was 2. 0% ( 2. 0 % ) and 1. 7% ( 1. 7 % ) for years ended december 31 , 2016 and 2015 .
 scheduled maturities of long term debt as of december 31 , 2016 : ( in thousands ).

2017                                         | $ 27000
-------------------------------------------- | --------
2018                                         | 27000
2019                                         | 63000
2020                                         | 25000
2021                                         | 86250
2022 and thereafter                          | 600000
total scheduled maturities of long term debt | $ 828250
current maturities of long term debt         | $ 27000


estimates of synthetic crude oil reserves prepared by glj petroleum consultants of calgary, canada third-party consultants.
 their reports for all years filed as exhibits to this annual report on form 10-k.
 team lead responsible for estimates osm reserves has 34 years experience in petroleum engineering conducted surface mineable oil sands evaluations since 1986.
 member of spe  served as regional director from 1998 through 2001.
 second team member has 13 years experience in petroleum engineering conducted surface mineable oil sands evaluations since 2009.
 both registered practicing professional engineers in province of alberta.
 audits of estimates third-party consultants engaged provide independent estimates for fields 80 percent of our total proved reserves over rolling four-year period for auditing in-house reserve estimates.
 met this goal for four- year period ended december 31 , 2012.
 established tolerance level of 10 percent initial estimates by third-party consultants accepted if within 10 percent of our internal estimates.
 should third-party consultants 2019 initial analysis fail to reach tolerance level team and consultants re-examine information request additional data refine analysis if appropriate.
 resolution process continued until both estimates within 10 percent.
 in limited instances where differences outside 10 percent tolerance be resolved by year end plan to resolve difference is developed senior management informed.
 process did not result in significant changes to reserve estimates in 2012 or 2011.
 no third-party audits performed in 2010.
 during 2012  netherland , sewell & associates , inc.
 ( "nsai" ) prepared certification of december 31 , 2011 reserves for alba field.
 nsai summary report filed as exhibit to this annual report on form 10-k.
members nsai team have years industry experience worked for large international oil and gas companies before joining nsai.
 senior technical advisor has bachelor of science degree in geophysics 15 years experience in estimation evaluation of reserves.
 second member has bachelor of science degree in chemical engineering master of business administration 3 years experience in estimation evaluation of reserves.
 both licensed in texas.
 ryder scott company ( "ryder scott" ) performed audits of our fields in 2012 and 2011.
 summary reports on audits 2012 2011 filed as exhibits to annual report on form 10-k.
 team lead for ryder scott has over 20 years industry experience worked for major international oil and gas company before joining ryder scott.
 has bachelor of science degree in mechanical engineering member of spe served on oil and gas reserves committee registered professional engineer in texas.
 changes in proved undeveloped reserves as of december 31, 2012, 571 mmboe of proved undeveloped reserves reported increase of 176 mmboe from december 31 , 2011.
 table shows changes in total proved undeveloped reserves for 2012 : ( mmboe ).
 significant additions to proved undeveloped reserves during 2012 include 56 mmboe due to acquisitions in eagle ford shale.
 development drilling added 124 mmboe in eagle ford 35 mmboe in bakken 15 mmboe in oklahoma resource basins shale play.
 gas sharing agreement with libyan government in 2012 added 19 mmboe.
 30 mmboe transferred from proved undeveloped to proved developed reserves in eagle ford 14 mmboe in bakken shale plays due to producing wells.
 costs incurred in 2012 , 2011 2010 to development of proved undeveloped reserves were $ 1995 million $ 1107 million and $ 1463 million.
total 27 mmboe booked result of reliable technology.
 technologies included statistical analysis of production performance  decline curve analysis rate transient analysis  reservoir simulation volumetric analysis.
 statistical nature of production performance with certain reservoir continuity or quality within reliable technology areas sufficient undeveloped locations establish reasonable certainty criteria required for booking reserves.

beginning of year                          | 395
------------------------------------------ | ----------
revisions of previous estimates            | -13 ( 13 )
improved recovery                          | 2
purchases of reserves in place             | 56
extensions discoveries and other additions | 201
transfer to proved developed               | -70 ( 70 )
end of year                                | 571


devon energy corporation subsidiaries notes to consolidated financial statements 2013 ( continued ) debt maturities as of december 31 , 2015  excluding premiums discounts as follows ( millions ) :.
 credit lines devon has $ 3. 0 billion senior credit facility.
 maturity date for $ 30 million facility is october 24 , 2017.
 maturity date for $ 164 million is october 24 , 2018.
 maturity date for remaining $ 2. 8 billion is october 24 , 2019.
 amounts borrowed under senior credit facility may at election devon bear interest at fixed rate options for up to twelve months.
 such rates generally less than prime rate.
 devon may elect to borrow at prime rate.
 senior credit facility provides for annual facility fee of $ 3. 8 million payable quarterly in arrears.
 as of december 31 , 2015 no borrowings under senior credit facility.
 senior credit facility contains one material financial covenant.
 covenant requires devon 2019s ratio of total funded debt to total capitalization credit agreement be no greater than 65% ( 65 % ).
 credit agreement contains definitions of total funded debt and total capitalization include adjustments to amounts reported in accompanying consolidated financial statements.
 total capitalization adjusted to add back noncash financial write-downs full cost ceiling impairments goodwill impairments.
 as of december 31 , 2015 devon in compliance with this covenant with debt-to- capitalization ratio of 23. 7% ( 23. 7 % ).
 commercial paper devon 2019s senior credit facility supports $ 3. 0 billion of short-term credit under commercial paper program.
 commercial paper debt has maturity of between 1 and 90 days can up to 365 days bears interest at rates agreed to at time of borrowing.
interest rate based on standard index federal funds rate libor or money market rate in commercial paper market.
 as of december 31 , 2015  devon 2019s outstanding commercial paper borrowings had weighted-average borrowing rate of 0. 63% ( 0. 63 % ).
 issuance senior notes in june 2015  devon issued $ 750 million of 5. 0% ( 5. 0 % ) senior notes due 2045 unsecured and unsubordinated obligations.
 devon used net proceeds to repay floating rate senior notes matured on december 15, 2015  outstanding commercial paper balances.
 in december 2015 announcement powder river basin and stack acquisitions devon issued $ 850 million of 5. 85% ( 5. 85 % ) senior notes due 2025 unsecured and unsubordinated obligations.
 used net proceeds to fund cash portion of acquisitions.

2016       | $ 976
---------- | -------
2017       | 2014
2018       | 875
2019       | 1100
2020       | 414
thereafter | 9763
total      | $ 13128


2015 compared to 2014 costs of revenue in 2015 increased $ 41 million.
 increase included constant currency increase in expenses of approximately $ 238 million  or 8. 9% ( 8. 9 % )  partially offset by positive impact of approximately $ 197 million from effects of foreign currency fluctuations.
 constant currency growth comprised of $ 71 million increase in commercial solutions  included impact from encore acquisition closed in july 2014 $ 146 million increase in research & development solutions incremental impact from businesses quest contributed to q2 solutions  $ 21 million increase in integrated engagement services.
 decrease in costs of revenue as percent of revenues for 2015 result of improvement in constant currency profit margin in commercial solutions , research & development solutions and integrated engagement services segments ( described in segment discussion ).
 for 2015  constant currency profit margin expansion partially offset by effect from higher proportion of consolidated revenues by lower margin integrated engagement services segment compared to 2014 negative impact from foreign currency fluctuations.
 selling , general and administrative expenses  exclusive of depreciation and amortization.
 2016 compared to 2015 $ 196 million increase in selling , general and administrative expenses in 2016 included constant currency increase of $ 215 million  or 26. 4% ( 26. 4 % )  partially offset by positive impact of approximately $ 19 million from effects of foreign currency fluctuations.
 constant currency growth of $ 151 million increase in commercial solutions includes $ 158 million from merger with ims health  partially offset by decline in legacy service offerings  $ 32 million increase in research & development solutions includes incremental impact from businesses quest contributed to q2 solutions  $ 3 million increase in integrated engagement services  $ 29 million increase in general corporate and unallocated expenses includes $ 37 million from merger with ims health.
constant currency increase in general corporate unallocated expenses in 2016 due to higher stock-based compensation expense.
 2015 compared to 2014 $ 34 million increase in selling  general administrative expenses in 2015 included constant currency increase of $ 74 million  or 9. 5% ( 9. % )  partially offset by positive impact of approximately $ 42 million from foreign currency fluctuations.
 constant currency growth comprised of $ 14 million increase in commercial solutions  included impact from encore acquisition closed in july 2014 $ 40 million increase in research & development solutions incremental impact from businesses quest contributed to q2 solutions  $ 4 million increase in integrated engagement services $ 14 million increase in general corporate unallocated expenses.
 constant currency increase in general corporate unallocated expenses in 2015 due to higher stock-based compensation expense costs associated with q2 solutions transaction.

( dollars in millions )                     | year ended december 31 , 2016 | year ended december 31 , 2015 | year ended december 31 , 2014
------------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
selling general and administrative expenses | $ 1011                        | $ 815                         | $ 781
% (  % ) of revenues                        | 18.8% ( 18.8 % )              | 18.8% ( 18.8 % )              | 18.8% ( 18.8 % )


backlog decreased in 2015 compared to 2014 due to sales recognized on multi-year programs ( hmsc  nisc iii  ciog nsf asc ) related to prior year awards limited large new business awards.
 backlog decreased 2014 compared to 2013 due to lower customer funding levels declining activities on direct warfighter support programs impacted defense budget reductions.
 expect is&gs 2019 2016 net sales to decline high-single digit percentage range compared to 2015 driven by key loss contracts competitive environment volume contraction on segment 2019s major contracts.
 operating profit expected to decline higher percentage range in 2016  compared to net sales percentage declines driven by higher margin program losses re-compete programs at lower margins.
 2016 margins expected be lower than 2015 results.
 missiles fire control mfc business segment provides air missile defense systems ; tactical missiles air-to-ground precision strike weapon systems ; logistics fire control systems mission operations support  readiness  engineering support integration services manned unmanned ground vehicles energy management solutions.
 mfc 2019s major programs include pac-3 , thaad  multiple launch rocket system  hellfire  jassm  javelin  apache sniper ae  low altitude navigation targeting infrared for night ( lantirn ae ) sof clss.
 mfc 2019s operating results included ( in millions ).
 2015 compared to 2014 mfc 2019s net sales 2015 decreased $ 322 million  or 5% ( 5 % )  compared to same period 2014.
decrease attributable to lower net sales $ 345 million for air and missile defense programs due to fewer deliveries primarily pac-3 ) lower volume primarily thaad ) $ 85 million for tactical missile programs due to fewer deliveries primarily guided multiple launch rocket system gmlrs joint air-to-surface standoff missile partially offset by increased deliveries for hellfire.
 decreases partially offset by higher net sales $ 55 million for energy solutions programs due to increased volume.
 mfc 2019s operating profit in 2015 decreased $ 62 million 5% ( 5 % ) compared to 2014.
 decrease attributable to lower operating profit $ 100 million for fire control programs due to lower risk retirements lantirn sniper ) $ 65 million for tactical missile programs due to lower risk retirements primarily hellfire gmlrs ) fewer deliveries.
 decreases partially offset by higher operating profit $ 75 million for air missile defense programs due to increased risk retirements primarily thaad ).
 adjustments not related to volume net profit booking rate adjustments $ 60 million lower in 2015 compared to 2014.
 2014 2013 mfc 2019s net sales increased $ 297 million 4% ( 4 % ) in 2014 compared 2013.
 increase attributable to higher net sales $ 180 million for air missile defense programs due to increased volume for thaad $ 115 million for fire control programs due to increased deliveries including apache ) $ 125 million for other programs due to increased volume.
 increases partially offset by lower net sales $ 115 million for tactical missile programs due to fewer deliveries primarily high mobility artillery rocket system army tactical missile system ).
 mfc 2019s operating profit decreased $ 35 million  3% ( 3 % )  in 2014 compared to 2013.
decrease attributable to lower operating profit $ 20 million for tactical missile programs due to net warranty reserve adjustments including jassm gmlrs fewer deliveries ; approximately $ 45 million for other programs due to lower risk retirements.
 decreases offset by higher operating profit approximately $ 20 million for air and missile defense programs due to increased volume ( primarily thaad and pac-3 ) ; about

| 2015             | 2014             | 2013
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 6770           | $ 7092           | $ 6795
operating profit    | 1282             | 1344             | 1379
operating margins   | 18.9% ( 18.9 % ) | 19.0% ( 19.0 % ) | 20.3% ( 20.3 % )
backlog at year-end | $ 15500          | $ 13300          | $ 14300


earnings remitted as dividends after payment deferred taxes.
 more than 90% ( 90 % ) of undistributed earnings in countries with statutory tax rate 24% ( 24 % ) or higher not generate disproportionate taxable income in countries with low tax rates.
 reconciliation of beginning and ending amount unrecognized tax benefits:.
 at 30 september 2013 and 2012  had $ 124. 3 and $ 110. 8 of unrecognized tax benefits  excluding interest and penalties $ 63. 1 and $ 56. 9  impact effective tax rate if recognized.
 interest and penalties related to unrecognized tax benefits recorded as component of income tax expense totaled $ 2. 4 in 2013 , $ ( 26. 1 ) in 2012  and $ ( 2. 4 ) in 2011.
 accrued balance for interest and penalties was $ 8. 1 and $ 7. 2 in 2013 and 2012 .
 challenged by spanish tax authorities over income tax deductions taken by spanish subsidiaries during fiscal years 2005 20132011.
 in november 2011 reached settlement with spanish tax authorities for 20ac41. 3 million ( $ 56 ) in resolution of tax issues under.
 settlement increased income tax expense for fiscal year ended 30 september 2012 by $ 43. 8 ( $. 20 per share ) had 3. 3% ( 3. % ) impact on effective tax rate.
 result of settlement recorded reduction in unrecognized tax benefits of $ 6. 4 for tax positions in prior years and $ 11. 0 for settlements.
 on 25 january 2012 spanish supreme court released decision in favor of our spanish subsidiary related to certain tax transactions for years 1991 and 1992 .
 in second quarter of 2012  recorded reduction in income tax expense of $ 58. 3 ( $. 27 per share )  resulting in 4.4% ( 4. 4 % ) reduction in effective tax rate for fiscal year ended 30 september 2012.
 result of this ruling  recorded reduction in unrecognized tax benefits of $ 38. 3 for tax positions taken in prior years.
 during third quarter of 2012  unrecognized tax benefits increased $ 33. 3 result of certain tax positions taken conjunction with disposition of homecare business.
 when resolved  benefits recognized in 201cincome from discontinued operations , net of tax 201d on consolidated income statements not impact effective tax rate.
 for additional information, see note 3, discontinued operations.
 in third quarter of 2011  u. s.
 internal revenue service audit over tax years 2007 and 2008 completed resulting in decrease in unrecognized tax benefits of $ 36. 0 favorable impact to earnings of $ 23. 9.
 included tax benefit of $ 8. 9 ( $. 04 per share ) recognized in income from discontinued operations for fiscal year 2011 , relates to previously divested u. s.
 healthcare business.
 currently under examination in number tax jurisdictions , some may be resolved in next twelve months.
 possible change in unrecognized tax benefits may occur during next twelve months.
 quantification of estimated range cannot be made this time.

unrecognized tax benefits                       | 2013         | 2012           | 2011
----------------------------------------------- | ------------ | -------------- | --------------
balance at beginning of year                    | $ 110.8      | $ 126.4        | $ 197.8
additions for tax positions of the current year | 12.7         | 44.5           | 16.3
additions for tax positions of prior years      | 9.0          | 2.3            | 5.7
reductions for tax positions of prior years     | -.5 ( .5 )   | -46.9 ( 46.9 ) | -72.4 ( 72.4 )
settlements                                     | -1.4 ( 1.4 ) | -11.0 ( 11.0 ) | -15.6 ( 15.6 )
statute of limitations expiration               | -8.0 ( 8.0 ) | -3.7 ( 3.7 )   | -4.8 ( 4.8 )
foreign currency translation                    | 1.7          | -.8 ( .8 )     | -.6 ( .6 )
balance at end of year                          | $ 124.3      | $ 110.8        | $ 126.4


determine stock-based compensation expense grant- date fair value applied to options granted with reduction for estimated forfeitures.
 recognize compensation expense for stock options straight-line basis over pro rata vesting period.
 at december 31 , 2011 and 2010  options for 12337000 and 13397000 shares of common stock exercisable at weighted-average price of $ 106. 08 and $ 118. 21 .
 total intrinsic value of options exercised during 2012  2011 2010 was $ 37 million  $ 4 million and $ 5 million.
 cash received from option exercises under incentive plans for 2012 2010 was approximately $ 118 million , $ 41 million $ 15 million .
 actual tax benefit realized for tax deduction from option exercises was approximately $ 41 million , $ 14 million and $ 5 million .
 no options granted in excess of market value in 2012 , 2011 or 2010.
 shares of common stock available next year for granting of options and other awards under incentive plans were 29192854 at december 31 , 2012.
 total shares of common stock authorized for future issuance under equity compensation plans totaled 30537674 shares at december 31 , 2012 includes shares available for issuance under incentive plans and employee stock purchase plan.
 during 2012  issued approximately 1. 7 million shares from treasury stock in connection with stock option exercise activity.
 intend to utilize primarily treasury stock for future stock option exercises.
 awards granted to non-employee directors in 2012 , 2011 and 2010 include 25620 , 27090 and 29040 deferred stock units awarded under outside directors deferred stock unit plan.
 deferred stock unit is phantom share of common stock requires liability accounting treatment until awards paid to participants as cash.
no vesting or service requirements on these awards, total compensation expense recognized in full on awarded deferred stock units on date of grant.
 incentive/performance unit share awards and restricted stock/unit awards fair value of nonvested incentive/performance unit share awards restricted stock/unit awards determined based on prices not less than market value of our common stock price on date of grant.
 value of certain incentive/ performance unit share awards remeasured based on achievement of one or more financial and other performance goals over three-year period.
 personnel and compensation committee of board of directors approves final award payout incentive/performance unit share awards.
 restricted stock/unit awards have vesting periods ranging from 36 months to 60 months.
 beginning in 2012  incorporated risk-related performance changes to incentive compensation programs.
 financial performance metrics peers final payout amount subject to negative adjustment if pnc fails to meet certain risk-related performance metrics specified in award agreement.
 p&cc has discretion to reduce any or this negative adjustment under certain circumstances.
 awards have three-year performance period payable in either stock or combination of stock and cash.
 performance-based restricted share units granted in 2012 to executives in lieu of stock options  with same terms and conditions as 2011 awards.
 weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2012 , 2011 and 2010 was $ 60. 68 , $ 63. 25 and $ 54. 59 per share , respectively.
 recognize compensation expense for such awards ratably over corresponding vesting and/or performance periods for each type of program.
table 130 : nonvested incentive/performance unit share awards restricted stock/unit awards 2013 rollforward shares in thousands nonvested incentive/ performance unit shares weighted- average date fair nonvested restricted stock/ shares weighted- average date fair.
 chart unit shares related weighted- average grant-date fair value incentive/performance awards exclude effect dividends on underlying shares dividends paid in cash.
 december 31 , 2012 $ 86 million unrecognized deferred compensation expense related to nonvested share- based compensation arrangements under incentive plans.
 cost expected recognized as expense over no longer than five years.
 total fair value of incentive/performance unit share restricted stock/unit awards vested during 2012 , 2011 2010 approximately $ 55 million , $ 52 million $ 39 million  respectively.
 pnc financial services group , inc.
 2013 form 10-k 203

shares in thousands december 31 2011 | nonvested incentive/ performance unit shares 830 | weighted-averagegrantdate fairvalue $ 61.68 | nonvested restricted stock/ unit shares 2512 | weighted-averagegrantdate fairvalue $ 54.87
------------------------------------ | ------------------------------------------------ | ------------------------------------------- | -------------------------------------------- | -------------------------------------------
granted                              | 465                                              | 60.70                                       | 1534                                         | 60.67
vested                               | -100 ( 100 )                                     | 64.21                                       | -831 ( 831 )                                 | 45.47
forfeited                            | -76 ( 76 )                                       | 60.27                                       | -154 ( 154 )                                 | 60.51
december 31 2012                     | 1119                                             | $ 61.14                                     | 3061                                         | $ 60.04


fhlb advances other borrowings fhlb advances 2014the company had $ 0. 7 billion in floating-rate and $ 0. 2 billion in fixed-rate fhlb advances at december 31 , 2013 and 2012.
 floating-rate advances adjust quarterly based on libor.
 year ended december 31 , 2012  $ 650. 0 million of fixed-rate fhlb advances converted to floating-rate for total cost of approximately $ 128 million capitalized amortized over remaining maturities using effective interest method.
 year ended december 31 , 2012  company paid down in advance of maturity $ 1. 0 billion of fhlb advances recorded $ 69. 1 million in losses on early extinguishment.
 loss recorded in gains ( losses ) on early extinguishment of debt line item in consolidated statement of income ( loss ).
 company similar transactions for years ended december 31 , 2013 and 2011.
 condition of membership in fhlb atlanta  company required to maintain fhlb stock investment equal to percentage of 0. 12% ( 0. 12 % ) of total bank assets ; or dollar cap amount of $ 20 million.
 bank must maintain activity based stock investment equal to 4. 5% ( 4. 5 % ) of bank 2019s outstanding advances at time of borrowing.
 company had investment in fhlb stock of $ 61. 4 million and $ 67. 4 million at december 31, 2013 and 2012  respectively.
 company must maintain qualified collateral as percent of advances varies based on collateral type adjusted by outcome of recent annual collateral audit and fhlb 2019s internal ranking of bank 2019s creditworthiness.
 advances secured by pool of mortgage loans and mortgage-backed securities.
 at december 31 , 2013 and 2012  company pledged loans with lendable value of $ 3. 9 billion and $ 4.8 billion  one- to four-family home equity loans as collateral support advances and unused borrowing lines.
 other borrowings 2014prior to 2008  etbh raised capital through formation of trusts sold trust preferred securities in capital markets.
 capital securities must be redeemed in whole at due date generally 30 years after issuance.
 each trust issued floating rate cumulative preferred securities ( 201ctrust preferred securities 201d ) par with liquidation amount $ 1000 per capital security.
 trusts used proceeds from sale issuances to purchase floating rate junior subordinated debentures ( 201csubordinated debentures 201d ) issued by etbh guarantees trust obligations contributed proceeds from sale subordinated debentures to e*trade bank capital contribution.
 most recent issuance of trust preferred securities in 2007.
 face values of outstanding trusts at december 31 , 2013 shown below ( dollars in thousands ) : trusts face value maturity date annual interest rate.

trusts                               | face value | maturity date | annual interest rate
------------------------------------ | ---------- | ------------- | ------------------------------------------------
etbh capital trust ii                | $ 5000     | 2031          | 10.25% ( 10.25 % )
etbh capital trust i                 | 20000      | 2031          | 3.75% ( 3.75 % ) above 6-month libor
etbh capital trust v vi viii         | 51000      | 2032          | 3.25%-3.65% ( 3.25%-3.65 % ) above 3-month libor
etbh capital trust vii ix 2014xii    | 65000      | 2033          | 3.00%-3.30% ( 3.00%-3.30 % ) above 3-month libor
etbh capital trust xiii 2014xviii xx | 77000      | 2034          | 2.45%-2.90% ( 2.45%-2.90 % ) above 3-month libor
etbh capital trust xix xxi xxii      | 60000      | 2035          | 2.20%-2.40% ( 2.20%-2.40 % ) above 3-month libor
etbh capital trust xxiii 2014xxiv    | 45000      | 2036          | 2.10% ( 2.10 % ) above 3-month libor
etbh capital trust xxv 2014xxx       | 110000     | 2037          | 1.90%-2.00% ( 1.90%-2.00 % ) above 3-month libor
total                                | $ 433000   |               |


z i m m e r h o l d i n g s , i n c.
 a n d s u b s i d i a r i e s 2 0 0 3 f o r m 1 0 - k notes to consolidated financial statements ) unaudited pro forma results for 2003 include events changes circumstances indicate carrying $ 90. 4 million expense related to centerpulse hip and knee value asset may not be recoverable.
 impairment loss litigation , $ 54. 4 million cash income tax benefits recognized when estimated future cash flows of centerpulse carry back 2002 u.
 federal net relating to asset less than carrying amount.
 operating loss for 5 years versus 10 years  resulted in depreciation of instruments recognized as selling  more losses carried forward to future years less administrative expense consistent with classification tax credits unutilized due to shorter carry back of instrument cost periods prior to january 1 , 2003.
 $ 8. 0 million gain on sale of orquest inc. prior to january 1 , 2003 undeployed instruments were investment previously held by centerpulse.
 unaudited carried as prepaid expense at cost , net allowances for pro forma results not indicative of obsolescence ( $ 54. 8 million , net  at december 31 , 2002 )  results of operations would resulted recognized in selling  general administrative expense in exchange offers in effect at beginning of year instruments placed into service.
 years future results.
 new method of accounting for instruments adopted to recognize cost of important assets of transfx company 2019s business within consolidated balance sheet on june 25 , 2003  company acquired transfx allocate cost of assets over external fixation system product line from immedica , inc.
 periods benefited typically five years.
 for approximately $ 14.8 million cash effect of change year ended allocated primarily to goodwill technology based december 31 , 2003 increase earnings before intangible assets.
 company sold transfx cumulative effect of change in accounting principle by product line since early 2001 under distribution agreement $ 26. 8 million ( $ 17. 8 million net of tax ) or $ 0. 08 per diluted with immedica.
 share.
 cumulative effect adjustment of $ 55. 1 million ( net of income taxes $ 34. 0 million ) to retroactively apply implex corp.
 new capitalization method applied years prior to 2003 on march 2, 2004 company entered into included in earnings year ended december 31 , amended restated merger agreement 2003.
 pro forma amounts on consolidated acquisition of implex corp.
 ( 2018 2018implex 2019 2019 ) privately held statement of earnings adjusted for effect of orthopaedics company based in new jersey for cash.
 retroactive application on depreciation related share of implex stock converted into right to income taxes.
 receive cash aggregate value of approximately $ 108. 0 million at closing additional cash earn-out 5.
 inventories payments contingent on growth of implex inventories at december 31, 2003 and 2002 product sales through 2006.
 net value transferred ( in millions ) closing approximately $ 89 million  includes.
 zimmer to implex existing alliance raw materials work in progress 90. 8 50. 9 arrangement , escrow other items.
 acquisition inventory step-up 52. 6 2013 accounted for under purchase method of accounting.
 inventories net $ 527. 7 $ 257. 6 reserves for obsolete and slow-moving inventory.
 change in accounting principle december 31 , 2003 and 2002 were $ 47. 4 million instruments are hand held devices used by orthopaedic $ 45.5 million .
 provisions expense surgeons during joint replacement other surgical were $ 11. 6 million , $ 6. 0 million $ 11. 9 million for procedures.
 effective january 1 , 2003  instruments years ended december 31 , 2003  2002 2001 .
 recognized as long-lived assets included in property amounts written off against reserve were $ 11. 7 million  plant equipment.
 undeployed instruments carried at $ 7. 1 million and $ 8. 5 million for years ended cost net of allowances for obsolescence.
 instruments in december 31, 2003 2002 2001 .
 field carried at cost less accumulated depreciation.
 following acquisition of centerpulse  company depreciation computed using straight-line method common approach for estimating excess based on average estimated useful lives determined inventory instruments.
 change in estimate resulted in reference to associated product life cycles charge to earnings of $ 3. 0 million after tax in fourth five years.
 accordance with sfas no.
 144  quarter.
 company reviews instruments for impairment

| 2003    | 2002
---------------------------------- | ------- | -------
finished goods                     | $ 384.3 | $ 206.7
raw materials and work in progress | 90.8    | 50.9
inventory step-up                  | 52.6    | 2013
inventories net                    | $ 527.7 | $ 257.6


part a0iii item a010.
 directors  executive officers corporate governance information required by item a010 executive officers , see part a0i , item 1.
 report.
 other information required item a010  see 201celection of directors , 201d 201cnominees for election to board of directors , 201d 201ccorporate governance 201d 201csection a016 ( a ) beneficial ownership reporting compliance , 201d proxy statement for 2019 annual meeting information incorporated herein by reference.
 proxy statement 2019 annual meeting filed within 120 a0days after end of fiscal year annual report on form 10-k.
 item a011.
 executive compensation information required item a011  see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d 201cexecutive compensation 201d proxy statement for 2019 annual meeting  information incorporated reference.
 item a012.
 security ownership of certain beneficial owners management related stockholder matters information required item a012 beneficial ownership of common stock, see 201csecurity ownership of certain beneficial owners management 201d proxy statement for 2019 annual meeting  information incorporated herein by reference.
 following table sets information as of december a031, 2018 equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants rights ( 1 ) weighted-average exercise price of outstanding options , warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1471449 $ 136.62 3578241 ( 1 ) number of securities in column ( a ) include 22290 shares of common stock underlying performance stock units if maximum performance levels achieved ; actual number of shares  if be issued with performance stock units based on performance specified financial and relative stock price measures.
 item a013.
 certain relationships related transactions  director independence for information required item a013 see 201ccertain transactions 201d and 201ccorporate governance 201d in proxy statement for 2019 annual meeting  information incorporated reference.
 item a014.
 principal accounting fees and services for information item a014 see 201caudit and non-audit fees 201d and 201caudit committee pre-approval procedures 201d in proxy statement for 2019 annual meeting  information incorporated reference.
 part a0iii item a010.
 directors , executive officers corporate governance for information required by item a010 executive officers , see part a0i , item 1.
 of report.
 for other information required by item a010  see 201celection of directors , 201d 201cnominees for election to board of directors, 201d 201ccorporate governance 201d and 201csection a016 ( a ) beneficial ownership reporting compliance , 201d in proxy statement for 2019 annual meeting  information incorporated reference.
 proxy statement for 2019 annual meeting filed within 120 a0days after end of fiscal year covered by annual report on form 10-k.
 item a011.
 executive compensation for information required item a011 see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d and 201cexecutive compensation 201d in proxy statement for 2019 annual meeting  information incorporated by reference.
 item a012.
security ownership of certain beneficial owners management related stockholder matters for information required by item a012 beneficial ownership common stock , see 201csecurity ownership beneficial owners management 201d in proxy statement for 2019 annual meeting  information incorporated herein by reference.
 table sets information as of december a031 , 2018 equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants rights ( 1 ) weighted-average exercise price of outstanding options warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1471449 $ 136. 62 3578241 ( 1 ) number of securities in column ( a ) include 22290 shares of common stock underlying performance stock units if maximum performance levels achieved ; actual number of shares  be issued performance stock units based on performance specified financial relative stock price measures.
 item a013.
 certain relationships related transactions  director independence information required item a013  see 201ccertain transactions 201d 201ccorporate governance 201d in proxy statement for 2019 annual meeting  information incorporated herein by reference.
 item a014.
 principal accounting fees services for information required item a014 , see 201caudit non-audit fees 201d 201caudit committee pre-approval procedures 201d in proxy statement for 2019 annual meeting  information incorporated herein by reference.

plan category                                          | number of securitiesto be issued uponexercise ofoutstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-averageexercise price ofoutstanding options warrants and rights | number of securitiesremaining available forfuture issuance underequity compensationplans ( excludingsecurities reflected in column ( a ) ) ( c )
------------------------------------------------------ | --------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 1471449                                                                                | $ 136.62                                                                 | 3578241


stock performance graph line compares cumulative shareholder returns with standard & poor 2019s information technology index standard 2019s 500 stock index for past five years.
 line graph assumes investment of $ 100 in common stock standard & poor 2019s information technology index standard 2019s 500 stock index on may 31 , 2002 assumes reinvestment of all dividends.
 comparison of 5 year cumulative total return* among global payments inc. s&p 500 index s&p information technology index 5/02 5/03 5/04 5/05 5/06 5/07 global payments inc.
 s&p 500 s&p information technology * $ 100 invested on 5/31/02 in stock or index-including reinvestment of dividends.
 fiscal year ending may 31.
 global payments s&p 500 information technology.
 issuer purchases of equity securities on april 5, 2007  board of directors authorized repurchases of common stock up to $ 100 million.
 board authorized us to purchase shares as market conditions permit.
 no expiration date authorization.
 no amounts repurchased during fiscal year ended may 31 , 2007.

| global payments | s&p 500  | s&p information technology
----------- | --------------- | -------- | --------------------------
may 31 2002 | $ 100.00        | $ 100.00 | $ 100.00
may 31 2003 | 94.20           | 91.94    | 94.48
may 31 2004 | 129.77          | 108.79   | 115.24
may 31 2005 | 193.30          | 117.75   | 116.29
may 31 2006 | 260.35          | 127.92   | 117.14
may 31 2007 | 224.24          | 157.08   | 144.11


hologic , inc.
 notes to consolidated financial statements ( continued ) ( in thousands  except per share data ) restructuring accrual result of cytyc merger  company assumed previous cytyc management approved restructuring plans to reduce future operating expenses by consolidating mountain view , california operations into existing operations in costa rica and massachusetts restructuring plans relating to cytyc 2019s historical acquisitions completed in march 2007.
 plans company assumed total liability of approximately $ 4658.
 during twelve months ended september 27 , 2008 company incur additional restructuring costs related to retention costs for employees.
 result third wave acquisition  company assumed previous third wave management approved restructuring plans to reduce future operating expenses.
 company assumed total liability related to termination benefits of approximately $ 7509.
 company not incur additional restructuring costs related to retention costs for these employees from date of acquisition through september 27 , 2008.
 anticipate costs paid in full during fiscal 2009.
 company recorded liability related to cytyc merger in accordance with eitf 95-3 detailed primarily related to termination of certain employees minimum inventory purchase commitments and other contractual obligations for which business activities discontinued.
 during twelve months ended september 27, 2008 company incurred approximately $ 6. 4 million of expense related to resignation of chairman of board of directors not included in table below ( see note 12 ).
 changes in restructuring accrual for twelve months ended september 27 , 2008 were : twelve months ended september 27 , 2008 termination benefits.
 of dates of acquisition of aeg elektrofotografie gmbh ( 201caeg 201d ) , r2 technology , inc.
 201cr2 201d ) and suros surgical , inc.
( 201csuros 201d ) ( see note 3 ) management company implemented finalized plans to involuntarily terminate employees acquired companies.
 plans resulted in liability for costs with employee severance arrangement of approximately $ 3135 accordance with eitf issue no.
 95-3 , recognition of liabilities with purchase business combination.
 as of september 29 , 2007  all amounts other than $ 105 paid.
 company made full payment on remaining liability as of september 27 , 2008.
 advertising costs costs charged to operations as incurred.
 company direct-response advertising.
 advertising costs  include trade shows conventions  were approximately $ 15281 , $ 6683 and $ 5003 for fiscal 2008, 2007 2006  respectively included in selling and marketing expense in consolidated statements of operations.

other                                    | twelve months ended september 27 2008 other | twelve months ended september 27 2008
---------------------------------------- | ------------------------------------------- | -------------------------------------
beginning balance                        | $ 2014                                      | $ 105
cytyc balance acquired october 22 2007   | 2014                                        | 4658
third wave balance acquired july 24 2008 | 261                                         | 7029
provided for under eitf no . 95-3        | 1820                                        | 1020
adjustments                              | -382 ( 382 )                                | -270 ( 270 )
payments                                 | -817 ( 817 )                                | -11233 ( 11233 )
ending balance                           | $ 882                                       | $ 1309


we do not expect transactions significant impact on our reported income tax expense.
 connection with completion reorganization we will reevaluate ability to realize deferred tax assets related to u. s.
 operations under new aon uk corporate structure may recognize non-cash deferred tax expense upon conclusion of evaluation.
 based on information available do not expect additional deferred tax expense  if be significant.
 reorganization will result in additional ongoing costs to us.
 completion of reorganization will in increase in ongoing expenses require us to incur new expenses.
 costs  including related to employees in our u. k.
 offices and holding board meetings in u. k.  expected to be higher than if principal executive offices not relocated to u. k.
 expect to incur new expenses including professional fees and sdrt in connection with settlement of equity-based awards under stock or share incentive plans to comply with u. k.
 corporate and tax laws.
 item 1b.
 unresolved staff comments.
 item 2.
 properties.
 have offices in various locations throughout world.
 substantially all offices located in leased premises.
 maintain corporate headquarters at 200 e.
 randolph street in chicago, illinois occupy approximately 355000 square feet of space under operating lease agreement expires in 2013.
 two five-year renewal options at current market rates.
 own one building at pallbergweg 2-4 , amsterdam , netherlands ( 150000 square feet ).
 following additional significant leased properties  along with occupied square footage and expiration.
 7201 hewitt associates drive , charlotte , north carolina.
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 218000 2015 locations in lincolnshire , illinois , woodlands  texas  orlando  florida  charlotte north carolina, acquired as part of hewitt acquisition in 2010  primarily dedicated to our hr solutions segment.
 other locations listed above house personnel from our business segments.
 in november 2011 , aon entered agreement to lease 190000 square feet in new building be constructed in london, united kingdom.
 agreement contingent upon completion of building construction.
 aon expects to move into new building in 2015 exercises early break option at devonshire square location.

property:                                                  | occupied square footage | lease expiration dates
---------------------------------------------------------- | ----------------------- | ----------------------
4 overlook point and other locations lincolnshire illinois | 1224000                 | 2014 2013 2019
2601 research forest drive the woodlands texas             | 414000                  | 2020
dlf city and unitech cyber park gurgaan india              | 383000                  | 2012 2013 2014
2300 discovery drive orlando florida                       | 364000                  | 2020
devonshire square and other locations london uk            | 327000                  | 2018 2013 2023
199 water street new york new york                         | 319000                  | 2018
7201 hewitt associates drive charlotte north carolina      | 218000                  | 2015


international crude oil production sweet generally sold in relation to brent crude benchmark.
 differential between wti and brent average prices widened in 2011 remained in 2012 comparison to almost no differential in 2010.
 natural gas 2013 significant portion of natural gas production in lower 48 states u. s.
 sold at bid-week prices or first-of-month indices relative to specific producing areas.
 average henry hub settlement prices for natural gas lower in 2012 than recent years.
 decline in average settlement date henry hub natural gas prices began in september 2011 continued into 2012.
 prices stabilized late 2012 not increased appreciably.
 other major natural gas-producing regions are e. g.
 europe.
 e. g.
 natural gas sales subject to term contracts making realizations less volatile.
 natural gas sales from e. g.
 at fixed prices worldwide reported average natural gas realizations may not fully track market price movements.
 natural gas prices in europe significantly higher than u. s.
 oil sands mining osm segment produces and sells various qualities synthetic crude oil.
 output mix can be impacted by operational problems or planned unit outages at mines upgrader.
 sales prices for two-thirds of normal output mix track movements in wti one-third track movements in canadian heavy sour crude oil marker  primarily wcs.
 in 2012  wcs discount from wti increased downward pressure on average realizations.
 operating cost structure of osm operations predominantly fixed costs incurred in times full operation continue during production downtime.
 per-unit costs sensitive to production rates.
 key variable costs are natural gas and diesel fuel track commodity markets canadian alberta energy company ( "aeco" ) natural gas sales index and crude oil prices.
 table below shows average benchmark prices impact revenues and variable costs.
wcs ( dollars per bbl ) a ) $ 73. 18 $ 77. 97 $ 65. 31 aeco natural gas sales index ( dollars per mmbtu ) b ) $ 2. 39 $ 3. 68 $ 3. 89 monthly pricing based average wti adjusted for differentials unique to western canada.
 b ) monthly average day ahead index.
 integrated gas operations include production marketing of products from natural gas lng and methanol in e. g.
 world lng trade in 2012 estimated to be 240 mmt.
 long-term lng in demand as markets seek benefits of clean burning natural gas.
 market prices for lng not reported or posted.
 lng delivered to u. s.
 tied to henry hub prices will track with changes in.
 natural gas prices lng sold in europe and asia indexed to crude oil prices track movement prices.
 60 percent ownership in lng production facility in e. g. sells lng under long-term contract at prices tied to henry hub natural gas prices.
 gross sales from plant were 3. 8 mmt , 4. 1 mmt 3. 7 mmt in 2012 , 2011 2010.
 own 45 percent interest in methanol plant in e. g.
 investment in ampco.
 gross sales of methanol from plant totaled 1. 1 mmt , 1. 0 mmt 0. 9 mmt in 2012 , 2011 2010.
 methanol demand impact on ampco 2019s earnings.
 global demand for methanol limited changes in supply-demand balance impact on sales prices.
 world demand for methanol in 2012 estimated to be 49 mmt.
 plant capacity of 1. 1 mmt is about 2 percent of world demand.

benchmark                                                | 2012    | 2011    | 2010
-------------------------------------------------------- | ------- | ------- | -------
wti crude oil ( dollars per bbl )                        | $ 94.15 | $ 95.11 | $ 79.61
wcs ( dollars per bbl ) ( a )                            | $ 73.18 | $ 77.97 | $ 65.31
aeco natural gas sales index ( dollars per mmbtu ) ( b ) | $ 2.39  | $ 3.68  | $ 3.89


entergy texas , inc.
 management's financial discussion analysis dividends distributions on its common stock.
 all' retained earnings available for distribution.
 sources of capital sources to meet capital requirements include : internally generated funds ; cash on hand ; debt or preferred stock issuances ; bank financing under new existing facilities.
 entergy texas may refinance or redeem debt prior to maturity market conditions interest dividend rates favorable.
 all debt common preferred stock issuances require prior regulatory approval.
 preferred stock debt issuances subject to issuance tests in corporate charter , bond indentures other agreements.
 entergy texas has sufficient capacity under these tests to meet foreseeable capital needs.
 entergy gulf states , inc.
 filed with ferc application for authority to issue up to $ 200 million of short-term debt  up to $ 300 million of tax-exempt bonds up to $ 1. 3 billion of other long- term securities  including common preferred preference stock long-term debt.
 on november 8 , 2007  ferc issued orders granting requested authority for two-year period ending november 8 , 2009.
 entergy texas' receivables from ( payables to ) money pool were as follows as of december 31 for each of following years:.
 see note 4 to financial statements for description of money pool.
 entergy texas has credit facility in of $ 100 million to expire in august 2012.
 as of december 31 , 2008  $ 100 million outstanding on credit facility.
 in february 2009  entergy texas repaid credit facility with proceeds from bond issuance discussed.
june 2 , 2008 and december 8 , 2008 debt assumption agreement between entergy texas and entergy gulf states louisiana discussed in note 5 to financial statements entergy texas paid at maturity $ 148. 8 million and $ 160. 3 million  of entergy gulf states louisiana first mortgage bonds decrease in entergy texas' debt assumption liability.
 december 2008  entergy texas borrowed $ 160 million from parent company entergy corporation  under $ 300 million revolving credit facility inter-company credit agreement between entergy corporation entergy texas.
 borrowing would have matured december 3 , 2013.
 entergy texas used borrowings with other corporate funds to pay at maturity portion of $ 350 million floating rate series of first mortgage bonds due december 2008 assumed by entergy texas bond series no longer outstanding.
 january 2009 entergy texas repaid $ 160 million note payable to entergy corporation with proceeds from bond issuance discussed below.
 january 2009  entergy texas issued $ 500 million of 7. 125% ( 7. 125 % ) series mortgage bonds due february 2019.
 entergy texas used portion proceeds to repay $ 160 million note payable to entergy corporation repay $ 100 million outstanding on credit facility repay short-term borrowings under entergy system money pool.
 entergy texas intends to use remaining proceeds to repay or prior to maturity approximately $ 70 million of obligations assumed by entergy texas under debt assumption agreement entergy gulf states louisiana for other general corporate purposes.

2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
( $ 50794 )      | $ 154176         | $ 97277          | $ 136545


republic services , inc.
 notes to consolidated financial statements 2014 ) employee stock purchase plan republic employees eligible to participate in employee stock purchase plan.
 plan allows participants to purchase common stock for 95% ( 95 % ) of quoted market price last day of each calendar quarter.
 for years ended december 31 , 2017 , 2016 2015  issuances under plan totaled 113941 shares , 130085 141055 shares  respectively.
 as of december 31 , 2017  shares reserved for issuance to employees plan totaled 0. 4 million republic held employee contributions of approximately $ 1. 8 million for purchase of common stock.
 12.
 stock repurchases dividends stock repurchases stock repurchase activity during years ended december 31, 2017 and 2016 follows ( in millions except per share amounts ) :.
 as of december 31 , 2017 0. 5 million repurchased shares pending settlement $ 33. 8 million unpaid included within other accrued liabilities.
 october 2017 board of directors added $ 2. 0 billion to existing share repurchase authorization extends through december 31 , 2020.
 $ 98. 4 million remained under prior authorization.
 share repurchases under program may be made through open market purchases or privately negotiated transactions accordance with federal securities laws.
 board of directors approved program timing of purchases prices number of shares common stock purchased determined by management depend upon market conditions other factors.
 share repurchase program may be extended suspended or discontinued.
 as of december 31 , 2017 remaining authorized purchase capacity under october 2017 repurchase program was $ 1. 8 billion.
 in december 2015 board of directors changed status of 71272964 treasury shares to authorized and unissued.
number of issued shares reduced by stated amount.
 accounting policy to deduct par value from common stock reflect excess of cost over par value as deduction from additional paid-in capital.
 change in unissued shares resulted in reduction of $ 2295. 3 million in treasury stock , $ 0. 6 million in common stock $ 2294. 7 million in additional paid-in capital.
 no effect on total stockholders 2019 equity position change.
 dividends in october 2017 board of directors approved quarterly dividend of $ 0. 345 per share.
 cash dividends declared were $ 446. 3 million , $ 423. 8 million $ 404. 3 million for years ended december 31 , 2017, 2016 2015  respectively.
 as of december 31 , 2017 recorded quarterly dividend payable of $ 114. 4 million to shareholders record at close of business on january 2 , 2018.
.
 earnings per share computed by dividing net income attributable to republic services .
 by weighted average number of common shares ( including vested but unissued rsus ) outstanding during

| 2017    | 2016
------------------------------- | ------- | -------
number of shares repurchased    | 9.6     | 8.4
amount paid                     | $ 610.7 | $ 403.8
weighted average cost per share | $ 63.84 | $ 48.56


issuer purchases of equity securities ( registered section 12 exchange act ) period number of shares purchased average price paid per share number of shares purchased part of publicly announced plans or programs maximum approximate dollar value of shares purchased under plans or programs ( 1 ) ( millions ).
 ( 1 ) total number of shares purchased includes : ( i ) shares purchased under board 2019s authorizations described ( ii ) shares purchased connection with exercise stock options ( totaled 34068 shares in january 2007 20091 shares february 2007 35772 shares in march 2007 71521 shares in april 2007 225419 shares in may 2007 74233 shares june 2007 135951 shares july 2007 82178 shares august 2007 56964 shares september 2007 13802 shares october 2007 10375 shares november 2007 23112 shares in december 2007 ).

period                                | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | maximum approximate dollar value of shares that may yet be purchased under the plans or programs ( millions )
------------------------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
january 1-31 2007                     | 1311268                                | $ 76.33                      | 1277200                                                                          | $ 651
february 1-28 2007                    | 6542591                                | $ 75.12                      | 6522500                                                                          | $ 6731
march 1-31 2007                       | 8187472                                | $ 75.59                      | 8151700                                                                          | $ 6115
total january 1 2014 march 31 2007    | 16041331                               | $ 75.46                      | 15951400                                                                         | $ 6115
april 1-30 2007                       | 3548221                                | $ 77.55                      | 3476700                                                                          | $ 5846
may 1-31 2007                         | 4428219                                | $ 85.84                      | 4202800                                                                          | $ 5485
june 1-30 2007                        | 3885033                                | $ 86.58                      | 3810800                                                                          | $ 5155
total april 1 2014 june 30 2007       | 11861473                               | $ 83.60                      | 11490300                                                                         | $ 5155
july 1-31 2007                        | 1646251                                | $ 89.01                      | 1510300                                                                          | $ 5021
august 1-31 2007                      | 2329478                                | $ 87.05                      | 2247300                                                                          | $ 4825
september 1-30 2007                   | 2086564                                | $ 90.24                      | 2029600                                                                          | $ 4642
total july 1 2014 september 30 2007   | 6062293                                | $ 88.68                      | 5787200                                                                          | $ 4642
october 1-31 2007                     | 2192302                                | $ 88.89                      | 2178500                                                                          | $ 4448
november 1-30 2007                    | 1702375                                | $ 82.35                      | 1692000                                                                          | $ 4309
december 1-31 2007                    | 1896612                                | $ 85.41                      | 1873500                                                                          | $ 4149
total october 1 2014 dec . 31 2007    | 5791289                                | $ 85.83                      | 5744000                                                                          | $ 4149
total january 1 2014 december 31 2007 | 39756386                               | $ 81.42                      | 38972900                                                                         | $ 4149


no options granted in excess of market value in 2011 , 2010 or 2009.
 shares of common stock available next year for granting options and other awards under incentive plans were 33775543 at december 31 , 2011.
 total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 35304422 shares at december 31 , 2011 includes shares available for issuance under incentive plans and employee stock purchase plan ( espp ).
 during 2011  issued 731336 shares from treasury stock in connection with stock option exercise activity.
 intend to utilize primarily treasury stock for future stock option exercises.
 awards granted to non-employee directors in 2011 , 2010 2009 include 27090 , 29040 , and 39552 deferred stock units  awarded under outside directors deferred stock unit plan.
 deferred stock unit is phantom share of common stock requires liability accounting treatment until awards paid to participants as cash.
 no vesting or service requirements on awards total compensation expense recognized in full on awarded deferred stock units on date of grant.
 incentive/performance unit share awards and restricted stock/unit awards fair value of nonvested determined based on prices not less than market value of common stock price on date of grant.
 value of certain incentive/ performance unit share awards remeasured based on achievement of one financial and other performance goals over three-year period.
 personnel and compensation committee of board of directors approves final award payout incentive/performance unit share awards.
 restricted stock/unit awards have various vesting periods ranging from 36 months to 60 months.
 beginning in 2011  incorporated two changes to certain awards under existing long-term incentive compensation programs.
for certain grants of incentive performance units future payout amount subject to negative annual adjustment if pnc fails to meet risk-related performance metrics.
 adjustment in addition to existing financial performance metrics.
 grants have three-year performance period payable in stock or combination stock and cash.
 performance-based restricted share units ( performance rsus ) granted in 2011 to executives in lieu of stock options.
 performance rsus payable solely in stock ) have service condition , internal risk-related performance condition external market condition.
 satisfaction of performance condition based on four independent one-year performance periods.
 weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2011, 2010 2009 was $ 63. 25 , $ 54. 59 $ 41. 16 per share  respectively.
 recognize compensation expense for such awards ratably over corresponding vesting and/or performance periods for each type program.
 nonvested incentive/performance unit share awards and restricted stock/unit awards 2013 rollforward shares in thousands nonvested incentive/ performance unit shares weighted- average date fair nonvested restricted stock/ shares weighted- average date fair.
 unit shares grant fair value awards exclude effect of dividends on underlying shares dividends paid in cash.
 at december 31 , 2011  $ 61 million of unrecognized deferred compensation expense related to nonvested share- based compensation arrangements granted under incentive plans.
 cost expected to be recognized as expense over period no longer than five years.
 total fair value of incentive/performance unit share and restricted stock/unit awards vested during 2011 , 2010 and 2009 was approximately $ 52 million , $ 39 million and $ 47 million  respectively.
liability awards grant annually cash-payable restricted share units to executives.
 grants made primarily part of annual bonus incentive deferral plan.
 time- based service-related vesting criteria no market or performance criteria associated with awards.
 compensation expense recognized related to awards recorded in prior as part of annual cash bonus criteria.
 as of december 31 , 2011  753203 cash- payable restricted share units outstanding.
 174 pnc financial services group , inc.
 2013 form 10-k

shares in thousands december 31 2010 | nonvested incentive/ performance unit shares 363 | weighted- average grant date fair value $ 56.40 | nonvested restricted stock/ unit shares 2250 | weighted- average grant date fair value $ 49.95
------------------------------------ | ------------------------------------------------ | ----------------------------------------------- | -------------------------------------------- | -----------------------------------------------
granted                              | 623                                              | 64.21                                           | 1059                                         | 62.68
vested                               | -156 ( 156 )                                     | 59.54                                           | -706 ( 706 )                                 | 51.27
forfeited                            |                                                  |                                                 | -91 ( 91 )                                   | 52.24
december 31 2011                     | 830                                              | $ 61.68                                         | 2512                                         | $ 54.87


fidelity national information services , inc.
 subsidiaries notes to consolidated financial statements - intrinsic value based on closing stock price as of december 31 , 2016 of $ 75. 64.
 weighted average fair value of options granted during years ended december 31 , 2016 , 2015 2014 estimated to be $ 9. 35 , $ 10. 67 $ 9. 15  respectively using black-scholes option pricing model with assumptions below:.
 company estimates future forfeitures at time of grant revises estimates in subsequent periods if actual forfeitures differ.
 company bases risk-free interest rate in stock option valuation model on.
 treasury securities issued with maturities similar to expected term of options.
 expected stock volatility factor determined using historical daily price changes of company's common stock over recent period with expected term of option impact of expected trends.
 dividend yield assumption based on current dividend yield at grant date or management's forecasted expectations.
 expected life assumption determined by calculating average term from company's historical stock option activity considering impact of expected future trends.
 company granted total of 1 million restricted stock shares at prices ranging from $ 56. 44 to $ 79. 41 on various dates in 2016.
 granted total 1 million restricted stock shares at prices ranging from $ 61. 33 to $ 69. 33 on various dates in 15.
 company granted total of 1 million restricted stock shares at prices from $ 52. 85 to $ 64. 04 on various dates in 2014.
 shares granted at closing market price on date of grant vest annually over three years.
 as of december 31 , 2016 and 2015 approximately 3 million and 4 million unvested restricted shares remaining.
 december 31 , 2016 balance includes those rsu's converted in connection with sungard acquisition noted.
company provided for total stock compensation expense of $ 137 million , $ 98 million $ 56 million for years ended december 31 , 2016 , 2015 2014  included in selling  general administrative expense in consolidated statements of earnings unless expense attributable to discontinued operation.
 total stock compensation expense , $ 2 million for 2014 relates to liability based awards not credited to additional paid in capital until issued.
 total d compensation expense for 2016 and 2015 not include amounts liability based awards.
 as of december 31 , 2016 2015 total unrecognized compensation cost related to non-vested stock awards is $ 141 million and $ 206 million expected to be recognized in pre-tax income over weighted average period of 1. 4 years and 1. 6 years .
 german pension plans german operations have unfunded defined benefit plan obligations.
 obligations relate to benefits to paid to germanaa employees upon retirement.
 accumulated benefit obligation as of december 31 , 2016 and 2015  was $ 49 million and $ 48 million projected benefit obligation was $ 50 million and $ 49 million .
 plan remains unfunded as of december 31 , 2016.
 ( 15 ) divestitures discontinued operations on december 7 , 2016  company entered definitive agreement to sell sungard public sector and education ( "ps&e ) businesses for $ 850 million.
 transaction included all ps&e solutions comprehensive technology solutions to address public safety public administration needs of government entities needs k-12 school districts.
 divestiture consistent with strategy to serve financial services markets.
 received cash proceeds net of taxes and transaction-related expenses of approximately $ 500 million.
 net cash proceeds expected to used to reduce outstanding debt note 10.
 ps&e businesses included in corporate and other segment.
transaction closed february 1 , 2017 , resulting in expected pre-tax gain from $ 85 million to $ 90 million

| 2016             | 2015             | 2014
---------------------------------------- | ---------------- | ---------------- | ----------------
risk free interest rate                  | 1.2% ( 1.2 % )   | 1.4% ( 1.4 % )   | 1.4% ( 1.4 % )
volatility                               | 20.4% ( 20.4 % ) | 21.7% ( 21.7 % ) | 21.2% ( 21.2 % )
dividend yield                           | 1.6% ( 1.6 % )   | 1.6% ( 1.6 % )   | 1.6% ( 1.6 % )
weighted average expected life ( years ) | 4.2              | 4.2              | 4.2


american tower corporation subsidiaries notes to consolidated financial statements allocation of purchase price finalized year ended december 31 , 2012.
 table summarizes allocation of aggregate purchase consideration paid amounts of assets acquired liabilities assumed based upon estimated fair value at date of acquisition ( in thousands ) : purchase price allocation.
 ( 1 ) consists of customer-related intangibles of approximately $ 0. 4 million network location intangibles of approximately $ 0. 7 million.
 customer-related intangibles network location intangibles amortized straight-line basis over periods up to 20 years.
 2 company expects goodwill recorded deductible for tax purposes.
 goodwill allocated to company 2019s international rental and management segment.
 colombia 2014colombia movil acquisition 2014on july 17 , 2011  company entered definitive agreement with colombia movil s.
.
 201ccolombia movil 201d ) atc sitios infraco . colombian subsidiary of company infraco 201d ) purchase up to 2126 communications sites from colombia movil for aggregate purchase price of approximately $ 182. 0 million.
 from december 21 , 2011 through year ended december 31, 2012  atc infraco completed purchase of 1526 communications sites for aggregate purchase price of $ 136. 2 million ( including contingent consideration of $ 17. 3 million ) subject to post-closing adjustments.
 subsidiary , millicom international cellular s.
 ( 201cmillicom 201d ) exercised option to acquire indirect  substantial non-controlling interest in atc infraco.
 under terms agreement company required to make additional payments upon conversion of certain barter agreements with other wireless carriers to cash paying lease agreements.
based company 2019s current estimates , value of potential contingent consideration payments required under amended agreement expected between zero and $ 32. 8 million estimated to be $ 17. 3 million using probability weighted average of expected outcomes at december 31 , 2012.
 during year ended december 31 , 2012  company recorded reduction in fair value of $ 1. 2 million  included in other operating expenses in consolidated statements of operations.

| final purchase price allocation
--------------------------------- | -------------------------------
non-current assets                | $ 2
property and equipment            | 3590
intangible assets ( 1 )           | 1062
other non-current liabilities     | -91 ( 91 )
fair value of net assets acquired | $ 4563
goodwill ( 2 )                    | 89