abiomed , inc.
 subsidiaries notes to consolidated financial statements 2014 continued ) note 14.
 income taxes continued april 1 , 2007 company adopted financial interpretation fin no.
 48 , accounting for uncertainty in income taxes 2014an interpretation of fasb statement no.
 109 ( 201cfin no.
 48 201d ) clarifies accounting for uncertainty in income taxes recognized in enterprise 2019s financial statements accordance with fasb statement no.
 109  accounting for income taxes.
 fin no.
 48 prescribes recognition threshold measurement process for recording in financial statements uncertain tax positions taken expected in tax return.
 fin no.
 48 provides guidance on derecognition  classification interest penalties  accounting in interim periods disclosure  transition defines criteria for benefits of tax position recognized.
 result adoption of fin no.
 48  company recorded cumulative effect of change in accounting principle of $ 0. 3 million as decrease to opening retained earnings increase to other long-term liabilities as of april 1 , 2007.
 adjustment related to state nexus for failure to file tax returns in various states for years ended march 31 , 2003  2004  2005.
 company initiated voluntary disclosure plan completed in fiscal year 2009.
 company elected to recognize interest/or penalties related to income tax matters in income tax expense in consolidated statements of operations.
 as of march 31 , 2009 company had remitted all outstanding amounts owed to states connection with outstanding taxes owed at march 31 , 2008.
 company had no fin no.
 48 liability at march 31 , 2009.
 quarterly basis company accrues for effects of uncertain tax positions related potential penalties interest.
possible unrecognized tax benefit certain unrecognized tax positions will increase or decrease next 12 months ; not expected change significant effect on company 2019s results operations or financial position.
 reconciliation of beginning and ending balance of unrecognized tax benefits  excluding accrued interest recorded at march 31 , 2009 ( in thousands ) as follows:.
 company and subsidiaries subject to.
 federal income tax , income tax of multiple state and foreign jurisdictions.
 company accumulated significant losses since inception 1981.
 all tax years remain subject to examination by major tax jurisdictions including federal government and commonwealth of massachusetts.
 company has net operating loss and tax credit carry forwards may be utilized in future years to offset taxable income those years may be subject to review by relevant taxing authorities if carry forwards utilized.
 note 15.
 commitments and contingencies company 2019s acquisition of impella provided abiomed required to make contingent payments to impella 2019s former shareholders : 2022 upon fda approval of impella 2. 5 device , payment of $ 5583333 2022 upon fda approval of impella 5. 0 device , payment of $ 5583333 , and 2022 upon sale of 1000 units of impella 2019s products worldwide, payment of $ 5583334.
 two milestones related to sales and fda approval of impella 2. 5 device achieved and paid prior to march 31 , 2009.
 in april 2009  company received fda 510 ( k ) clearance of impella 5. 0 product  triggering obligation to pay milestone related to impella 5. 0 device.
 in may 2009  company paid $ 1. 8 million of final milestone in cash elected to pay remaining amount through issuance of approximately 664612 shares of common stock.

balance at march 31 2008                                                          | $ 168
--------------------------------------------------------------------------------- | ------------
reductions for tax positions for closing of the applicable statute of limitations | -168 ( 168 )
balance at march 31 2009                                                          | $ 2014


position to handle demand changes.
 continue utilizing industrial engineering techniques to improve productivity.
 2022 fuel prices 2013 uncertainty about economy makes fuel price projections difficult could see volatile fuel prices during year sensitive to global.
 domestic demand  refining capacity  geopolitical events  weather conditions other factors.
 to reduce impact of fuel price on earnings continue to seek recovery from customers through fuel surcharge programs expand fuel conservation efforts.
 2022 capital plan 2013 in 2011  plan to make total capital investments of approximately $ 3. 2 billion , including expenditures for positive train control ( ptc ) may be revised if business conditions warrant or if new laws or regulations affect generate sufficient returns on investments.
 ( see further discussion in item 7 under liquidity and capital resources 2013 capital plan. ) 2022 positive train control 2013 response to legislative mandate to implement ptc by end of 2015  expect to spend approximately $ 250 million during 2011 on developing ptc.
 estimate ptc will cost approximately $ 1. 4 billion to implement by end of 2015  in accordance with rules by federal railroad administration (.
 includes costs for installing new system along tracks upgrading locomotives new system adding digital data communication equipment system communicate.
 during 2011  plan to begin testing technology to evaluate effectiveness.
 2022 financial expectations 2013 remain cautious about economic conditions anticipate volume to increase from 2010 levels.
 expect volume , price  productivity gains to offset expected higher costs for fuel , labor inflation  depreciation  casualty costs  property taxes to drive operating ratio improvement.
 results of operations operating revenues millions 2010 2009 2008 % ( % ) change 2010 v 2009 % ( % ) change 2009 v 2008.
 freight revenues are revenues generated by transporting freight or other materials from six commodity groups.
freight revenues vary with volume ( carloads ) average revenue per car ( arc ).
 changes in price  traffic mix fuel surcharges drive arc.
 provide customers with contractual incentives for meeting or exceeding specified cumulative volumes or shipping to from specific locations record as reduction to freight revenues based on actual or projected future shipments.
 recognize freight revenues as freight moves from origin to destination.
 allocate freight revenues between reporting periods based on relative transit time each recognize expenses as we incur them.
 other revenues include revenues earned by subsidiaries from commuter rail operations accessorial revenues earn when customers retain equipment owned controlled or perform additional services switching storage.
 recognize other revenues as perform services or meet contractual obligations.
 freight revenues volume levels for all six commodity groups increased during 2010 economic improvement in market sectors.
 experienced strong volume growth in automotive  intermodal industrial products shipments.
 core pricing gains higher fuel surcharges increased freight revenues drove 6% ( 6 % ) improvement in arc.
 freight revenues volume levels for all six commodity groups decreased during 2009  reflecting continued economic weakness.
 experienced largest volume declines in automotive and industrial

millions         | 2010    | 2009    | 2008    | % (  % ) change 2010 v 2009 | % (  % ) change 2009 v 2008
---------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
freight revenues | $ 16069 | $ 13373 | $ 17118 | 20% ( 20 % )                | ( 22 ) % (  % )
other revenues   | 896     | 770     | 852     | 16                          | -10 ( 10 )
total            | $ 16965 | $ 14143 | $ 17970 | 20% ( 20 % )                | ( 21 ) % (  % )


equity compensation plan information documents footnotes included as exhibits to form 10-k incorporated herein by reference entirety.
 table provides information as of dec.
 31 , 2006 number of shares of ppg common stock issued under ppg 2019s equity compensation plans.
 plan category securities exercise of outstanding options  warrants rights weighted- average exercise price of outstanding warrants rights number of securities remaining available for future issuance under equity compensation ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders ( 1 ) 9413216 $ 58. 35 10265556 equity compensation plans not approved by security holders ( 2 ) ( 3 ) 2089300 $ 70. 00 2014.
 equity compensation plans approved by security holders include ppg industries , inc.
 stock plan  ppg omnibus plan  ppg industries , inc.
 executive officers 2019 long term incentive plan  ppg industries inc.
 long term incentive plan.
 2 ) equity compensation plans not approved by include ppg industries , inc.
 challenge 2000 stock plan.
 broad- based stock option plan company granted to active employees majority owned subsidiaries on july 1, 1998 option to purchase 100 shares of company 2019s common stock at fair market value $ 70. 00 per share.
 options exercisable on july 1 , 2003 expire june 30 , 2008.
 2089300 shares issuable upon exercise of options outstanding under plan as of dec.
 31 , 2006.
 ( 3 ) excluded from information are common stock equivalents held under ppg industries , inc.
 deferred compensation plan , ppg industries.
 deferred compensation plan for directors ppg industries , inc.
directors 2019 common stock plan none equity compensation plans.
 supplemental 491168 common stock equivalents held under plans as of dec.
 31 , 2006.
 item 6.
 selected financial data information required by item 6 for five years ended dec.
 31 , 2006 included in exhibit 99. 2 filed with form 10-k incorporated by reference.
 information reported in eleven-year digest on page 72 of annual report under captions net sales  income ( loss ) before accounting changes cumulative effect of accounting changes net income ( loss ) earnings ( loss ) per common share before accounting changes effect accounting changes on earnings ( loss ) per common share 2013 assuming dilution  dividends per share  total assets long-term debt for years 2002 through 2006.
 item 7.
 management 2019s discussion analysis of financial condition results of operations performance in 2006 compared with 2005 sales increased 8% ( 8 % ) to $ 11. 0 billion in 2006 compared to $ 10. 2 billion in 2005.
 sales increased 4% ( 4 % ) due to impact acquisitions 2% ( 2 % ) to increased volumes 2% ( 2 % ) to increased selling prices.
 cost of sales percentage of sales increased slightly to 63. 7% ( 63. 7 % ) compared to 63. 5% (. 5 % ) in 2005.
 selling  general and administrative expense increased slightly percentage of sales to 17. 9% ( 17. 9 % ) compared to 17. 4% ( 17. 4 % ) in 2005.
 costs increased due to higher expenses related to store expansions in architectural coatings operating segment increased advertising growth in optical products operating segment.
 other charges decreased $ 81 million in 2006.
charges in 2006 included pretax charges $ 185 million for estimated environmental remediation costs at sites new jersey $ 42 million for legal settlements offset by pretax earnings $ 44 million for insurance recoveries related to marvin legal settlement hurricane rita.
 charges in 2005 included pretax charges $ 132 million related marvin legal settlement net related insurance recoveries $ 18 million , $ 61 million for federal glass class action antitrust legal settlement  $ 34 million direct costs impact hurricanes rita katrina  $ 27 million asset impairment charge fine chemicals operating segment $ 19 million for debt refinancing costs.
 earnings increased $ 30 million in 2006 due to higher equity earnings from asian fiber glass joint ventures higher royalty income.
 net income earnings per share 2013 assuming dilution for 2006 were $ 711 million and $ 4. 27 , compared to $ 596 million and $ 3. 49  for 2005.
 net income 2006 included aftertax charges $ 106 million  64 cents a share for estimated environmental remediation costs at sites new jersey louisiana third quarter ; $ 26 million  15 cents a share for legal settlements ; $ 23 million  14 cents share for business restructuring ; $ 17 million 10 cents a share net increase in current value of company 2019s obligation relating to asbestos claims under ppg settlement arrangement ; aftertax earnings $ 24 million 14 cents a share for insurance recoveries.
net income 2005 included aftertax charges $ 117 million 68 cents a share for legal settlements net of insurance ; $ 21 million 12 cents a share for direct costs related to impact hurricanes katrina rita ; $ 17 million  or 10 cents a share related to asset impairment charge fine chemicals operating segment ; $ 12 million 7 cents a share for debt refinancing cost ; $ 13 million or 8 cents a share reflect net increase in current 2006 ppg annual report form 10-k 19 4282_txt be issued options , number of

plan category                                                          | numberof securities to be issued upon exercise of outstanding options warrants and rights ( a ) | weighted- average exercise price of outstanding options warrants and rights ( b ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c )
---------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------- | -----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders ( 1 )           | 9413216                                                                                | $ 58.35                                                                           | 10265556
equity compensation plans not approved by security holders ( 2 ) ( 3 ) | 2089300                                                                                | $ 70.00                                                                           | 2014
total                                                                  | 11502516                                                                                | $ 60.57                                                                           | 10265556


equity in net earnings of affiliated companies equity income from m-i swaco joint venture in 2010 represents eight months equity income through closing smith transaction.
 interest expense of $ 298 million in 2011 increased by $ 91 million compared to 2010 due to $ 4. 6 billion long-term debt schlumberger issued during 2011.
 interest expense of $ 207 million in 2010 decreased by $ 14 million compared to 2009 due to decline in weighted average borrowing rates from 3. 9% ( 3. 9 % ) to 3. 2% ( 3. 2 % ).
 research & engineering and general & administrative expenses  percentage of revenue were follows:.
 research & engineering decreased percentage of revenue in 2011 compared to 2010 2010 2009 increased in absolute dollars by $ 154 million and $ 117 million  respectively.
 increases absolute dollars driven by impact smith acquisition.
 income taxes schlumberger effective tax rate was 24. 4% ( 24. 4 % ) in 2011 , 17. 3% ( 17. 3 % ) in 2010  19. 6% ( 19. 6 % ) in 2009.
 effective tax rate sensitive to geographic mix of earnings.
 when percentage of pretax earnings generated outside of north america increases schlumberger effective tax rate decrease.
 conversely percentage pretax earnings outside north america decreases effective tax rate increase.
 effective tax rate for 2011 and 2010 impacted by charges and credits described in note 3 to consolidated financial statements.
 excluding impact charges credits effective tax rate in 2011 was 24. 0% ( 24. 0 % ) compared to 20. 6% ( 20. 6 % ) in 2010.
increase in effective tax rate , excluding impact charges and credits , primarily attributable to schlumberger generated larger proportion of pretax earnings in north america in 2011 compared to 2010 result of improved market conditions and effect of full year 2019s activity from acquired smith businesses.
 effective tax rate for 2009 also impacted by charges and credits described in note 3 to consolidated financial statements but to lesser extent.
 excluding charges and credits  effective tax rate in 2010 was 20. 6% ( 20. 6 % ) compared to 19. 2% ( 19. 2 % ) in 2009.
 increase largely attributable to geographic mix of earnings inclusion of four months 2019 results from acquisition of smith , schlumberger effective tax charges and credits schlumberger recorded significant charges and credits in continuing operations during 2011 , 2010 and 2009.
 these charges and credits  summarized below more fully described in note 3 to consolidated financial statements.

| 2011           | 2010           | 2009
------------------------ | -------------- | -------------- | --------------
research & engineering   | 2.7% ( 2.7 % ) | 3.3% ( 3.3 % ) | 3.5% ( 3.5 % )
general & administrative | 1.1% ( 1.1 % ) | 1.1% ( 1.1 % ) | 1.1% ( 1.1 % )


notes to consolidated financial statements 2014 ( continued ) acquisitions recorded using purchase method of accounting purchase price allocated to assets acquired and liabilities assumed based on estimated fair value as of date of acquisition.
 operating results of each acquisition included in consolidated statements of income from dates each acquisition.
 fiscal 2008 during 2008 acquired portfolio of merchants process discover transactions and rights to process discover transactions for existing and new merchants.
 result of acquisition  now process discover transactions similarly to process visa and mastercard transactions.
 purpose of acquisition was to offer merchants single point of contact for discover , visa and mastercard card processing.
 during fiscal 2008 acquired majority of assets of euroenvios money transfer , s.
 and euroenvios conecta , s. l. collectively refer to as lfs spain.
 lfs spain of two privately- held corporations engaged in money transmittal and ancillary services from spain to settlement locations primarily in latin america.
 purpose of acquisition was to further strategy of expanding customer base and market share by opening additional branch locations.
 during fiscal 2008  acquired series of money transfer branch locations in united states.
 purpose of acquisitions to increase market presence of dolex-branded money transfer offering.
 following table summarizes preliminary purchase price allocations of business acquisitions ( in thousands ) :.
 customer-related intangible assets have amortization periods of up to 14 years.
 contract-based intangible assets have amortization periods of 3 to 10 years.
 these business acquisitions not significant to consolidated financial statements not provided pro forma information relating to these acquisitions.
 during fiscal 2008  acquired customer list and long-term merchant referral agreement in canadian merchant services channel for $ 1.7 million.
 value assigned to customer list of $ 0. 1 million expensed immediately.
 remaining value assigned to merchant referral agreement being amortized on straight-line basis over useful life of 10 years.

| total
----------------------------------------- | --------------
goodwill                                  | $ 13536
customer-related intangible assets        | 4091
contract-based intangible assets          | 1031
property and equipment                    | 267
other current assets                      | 502
total assets acquired                     | 19427
current liabilities                       | -2347 ( 2347 )
minority interest in equity of subsidiary | -486 ( 486 )
net assets acquired                       | $ 16594


9.
 lease commitments company leases land , facilities  equipment software under various operating leases expire at various dates through 2057.
 lease agreements include renewal escalation clauses require company to pay taxes  insurance maintenance costs.
 total rental expense under operating leases was approximatelya $ 92. 3 million in fiscal 2019 , $ 84. 9 million in fiscal 2018 $ 58. 8 million in fiscal 2017.
 following schedule of futureff minimum rental payments required under long-term operating leases at november 2 , 2019 : operating fiscal years leases.
 10.
 commitments and contingencies from to  in ordinary company business  claims , charges litigation are asserted or commenced against company arising from related to contractual matters  patents  trademarks  personal injury environmental matters  product liability  insurance coverage  employment benefits.
 claims litigation company can give no assurance that it will prevail.
 company does not believe current legal matters will have material adverse effect on company 2019s financial position  results of operations cash flows.
 11.
 retirement plans company and subsidiaries have savings retirement plans covering all employees.
 defined contribution plans company maintains defined contribution plan for benefit of its eligible.
 employees.
 plan provides for company contributions of up to 5% ( 5 % ) of each participant 2019s total eligible compensation.
 in company contributes amount equal to each participant 2019s pre-tax contribution  up to maximum of 3% ( 3 % ) of each participant 2019s total eligible compensation.
 total expense related to defined contribution plans for.
 employees was $ 47. 7 million in fiscal 2019 , $ 41. 4 million in fiscal 2018 $ 35. 8 million in fiscal 2017.
non-qualified deferred compensation plan ( dcp ) allows management highly-compensated employees non-employee directors to defer receipt of all or portion of compensation.
 dcp established to provide participants opportunity to defer receiving all or portion of compensation  includes salary  bonus  commissions director fees.
 under dcp company provides all participants ( other than non-employee directors ) with company contributions equal to 8% ( 8 % ) of eligible deferred contributions.
 dcp is non-qualified plan maintained in rabbi trust.
 fair value of investments held in rabbi trust presented separately as deferred compensation plan investments with current portion of investment included in prepaid expenses other current assets in consolidated balance sheets.
 see note 2j , fair value , for further information on investments.
 deferred compensation obligation represents dcp participant accumulated deferrals earnings since inception of dcp net of withdrawals.
 deferred compensation obligation presented separately as deferred compensation plan liability with current portion of obligation in accrued liabilities in consolidated balance sheets.
 company 2019s liability under dcp is unsecured general obligation of company.
 analog devices , inc.
 notes to consolidated financial statements 2014 ( continued )

fiscal years | operating leases
------------ | ----------------
2020         | $ 79789
2021         | 67993
2022         | 40338
2023         | 37673
2024         | 32757
later years  | 190171
total        | $ 448721


management 2019s discussion analysis believe our credit ratings primarily based on credit rating agencies 2019 assessment of : 2030 our liquidity , market  credit operational risk management practices ; 2030 level variability of our earnings ; 2030 capital base ; 2030 franchise , reputation management ; 2030 corporate governance ; 2030 external operating environment , including assumed level of government support.
 certain firm 2019s derivatives transacted under bilateral agreements with counterparties who may require us to post collateral or terminate transactions based on changes in credit ratings.
 we assess impact of these bilateral agreements by determining collateral or termination payments occur assuming downgrade by all rating agencies.
 downgrade by any one rating agency , depending on agency 2019s relative ratings of firm at time downgrade , may have impact comparable to impact of downgrade by all rating agencies.
 we allocate portion of our gce to ensure make additional collateral or termination payments required in event two-notch reduction in long-term credit ratings, collateral not called by counterparties  but available to them.
 table below presents additional collateral or termination payments could have been called at reporting date by counterparties in event of one-notch and two-notch downgrade in credit ratings.
 in millions 2012 2011 additional collateral or termination payments for a one-notch downgrade $ 1534 $ 1303 additional collateral or termination payments for two-notch downgrade 2500 2183 cash flows as global financial institution , our cash flows complex bear little relation to net earnings net assets.
 believe traditional cash flow analysis less meaningful in evaluating liquidity position than excess liquidity and asset-liability management policies described above.
 cash flow analysis may  be helpful in highlighting certain macro trends strategic initiatives in businesses.
 year ended december 2012.
 our cash and cash equivalents increased by $ 16.66 billion to $ 72. 67 billion end of 2012.
 generated $ 9. 14 billion net cash from operating investing activities.
 generated $ 7. 52 billion net cash from financing activities increase in bank deposits offset by net repayments of unsecured secured long-term borrowings.
 year ended december 2011.
 cash cash equivalents increased $ 16. 22 billion to $ 56. 01 billion end of 2011.
 generated $ 23. 13 billion net cash from operating investing activities.
 used net cash $ 6. 91 billion for financing activities primarily repurchases of series g preferred stock common stock offset by increase bank deposits.
 year ended december 2010.
 cash cash equivalents increased by $ 1. 50 billion to $ 39. 79 billion end of 2010.
 generated $ 7. 84 billion net cash from financing activities primarily net proceeds issuances short-term secured financings.
 used net cash $ 6. 34 billion for operating investing activities primarily fund increase in securities purchased under agreements to resell increase in cash securities segregated for regulatory other purposes offset by cash from decrease in securities borrowed.
 goldman sachs 2012 annual report 87

in millions                                                             | as of december 2012 | as of december 2011
----------------------------------------------------------------------- | ------------------- | -------------------
additional collateral or termination payments for a one-notch downgrade | $ 1534              | $ 1303
additional collateral or termination payments for a two-notch downgrade | 2500                | 2183


intermodal 2013 decreased volumes fuel surcharges reduced freight revenue from intermodal shipments in 2009 versus 2008.
 volume from international traffic decreased 24% ( 24 % ) in 2009 compared to 2008 reflecting economic conditions weak imports from asia diversions to non-uprr served ports.
 weakness in domestic housing automotive sectors translated into weak demand in large sectors international intermodal market contributed to volume decline.
 domestic traffic increased 8% ( 8 % ) in 2009 compared to 2008.
 new contract with hub group ,. included additional shipments executed second quarter of 2009 offset impact of weak market conditions second half 2009.
 price increases fuel surcharges generated higher revenue in 2008 partially offset by lower volume levels.
 international traffic declined 11% ( 11 % ) in 2008 reflecting softening of imports from china loss of customer contract.
 peak intermodal shipping season starts third quarter weak in 2008.
 weakness in domestic housing automotive sectors translated into weak demand in large sectors international intermodal market contributed to lower volumes.
 domestic traffic declined 3% ( 3 % ) in 2008 due to loss of customer contract lower volumes from less-than-truckload shippers.
 flood-related embargo on traffic in midwest during second quarter hindered intermodal volume levels in 2008.
 mexico business 2013 commodity groups include revenue from shipments to from mexico.
 revenue from mexico business decreased 26% ( 26 % ) in 2009 versus 2008 to $ 1. 2 billion.
 volume declined in five of six commodity groups down 19% ( 19 % ) in 2009 driven by 32% ( 32 % ) and 24% ( 24 % ) reductions in industrial products and automotive shipments respectively.
energy shipments increased 9% ( 9 % ) 2009 versus 2008 offsetting declines.
 revenue from mexico business increased 13% ( 13 % ) to $ 1. 6 billion 2008 compared 2007.
 price improvements fuel surcharges contributed increases offset by 4% ( 4 % ) decline in volume 2008 compared 2007.
 operating expenses millions of dollars 2009 2008 2007 % ( % ) change 2009 v 2008 2008 v 2007.
 2009 intermodal revenue international domestic

millions of dollars              | 2009    | 2008    | 2007    | % (  % ) change 2009 v 2008 | % (  % ) change 2008 v 2007
-------------------------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
compensation and benefits        | $ 4063  | $ 4457  | $ 4526  | ( 9 ) % (  % )              | ( 2 ) % (  % )
fuel                             | 1763    | 3983    | 3104    | -56 ( 56 )                  | 28
purchased services and materials | 1614    | 1902    | 1856    | -15 ( 15 )                  | 2
depreciation                     | 1444    | 1387    | 1321    | 4                           | 5
equipment and other rents        | 1180    | 1326    | 1368    | -11 ( 11 )                  | -3 ( 3 )
other                            | 687     | 840     | 733     | -18 ( 18 )                  | 15
total                            | $ 10751 | $ 13895 | $ 12908 | ( 23 ) % (  % )             | 8% ( 8 % )


entergy new orleans , inc.
 management 2019s financial discussion analysis volume/weather variance due to increase in electricity usage in residential and commercial sectors due to 4% ( 4 % ) increase in average residential customers and 3% ( 3 % ) increase in average commercial customers offset by effect less favorable weather on residential sales.
 gross operating revenues revenues decreased due to decrease of $ 16. 2 million in electric fuel cost recovery revenues due to lower fuel rates ; decrease of $ 15. 4 million in gross gas revenues due to lower fuel cost recovery revenues lower fuel rates milder weather ; formula rate plan decreases effective october 2010 and october 2011 .
 decrease partially offset by increase in gross wholesale revenue due to increased sales to affiliated customers more favorable volume/weather.
 2010 compared to 2009 net revenue consists of operating revenues net of 1 fuel , fuel-related expenses  gas purchased for resale  2 purchased power expenses  3 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2010 to 2009.
 amount ( in millions ).
 volume/weather variance due to increase of 348 gwh , or 7% ( 7 % )  in billed retail electricity usage due to more favorable weather compared to last year.
 net gas revenue variance due to more favorable weather compared to last year recognition of gas regulatory asset associated with settlement of entergy new orleans 2019s electric and gas formula rate plans.
 see note 2 to financial statements for discussion of formula rate plan settlement.
 effect of 2009 rate case settlement variance results from april 2009 settlement of entergy new orleans 2019s rate case  includes effects of realigning non-fuel costs associated with operation of grand gulf from fuel adjustment clause to electric base rates effective june 2009.
note 2 financial statements discussion rate case settlement.
 other income statement variances 2011 compared to 2010 operation and maintenance expenses decreased due to deferral 2011 of $ 13. 4 million of 2010 michoud plant maintenance costs pursuant settlement of entergy new orleans 2019s 2010 test year formula rate plan filing approved city council september 2011 decrease of $ 8. 0 million in fossil- fueled generation expenses due to higher plant outage costs 2010 due to greater scope of work at michoud plant.
 see note 2 financial statements discussion 2010 test year formula rate plan filing.

| amount ( in millions )
----------------------------------- | ----------------------
2009 net revenue                    | $ 243.0
volume/weather                      | 17.0
net gas revenue                     | 14.2
effect of 2009 rate case settlement | -6.6 ( 6.6 )
other                               | 5.3
2010 net revenue                    | $ 272.9


financial assurance we must provide financial assurance to governmental agencies other entities under environmental regulations relating to our landfill operations for capping  closure post-closure costs related to our performance under certain collection , landfill transfer station contracts.
 we satisfy these financial assurance requirements by providing surety bonds letters of credit insurance policies ( financial assurance instruments ) trust deposits  included in restricted cash marketable securities other assets in our consolidated balance sheets.
 amount of financial assurance requirements for capping  closure post-closure costs is determined by state environmental regulations.
 financial assurance requirements for capping  closure post-closure costs may be associated with portion of landfill or entire landfill.
 states require a third-party engineering specialist to determine estimated capping  closure post-closure costs to determine required amount of financial assurance for landfill.
 amount of financial assurance required can differ from obligation determined and recorded under u.
.
 amount of financial assurance requirements related to contract performance varies by contract.
 we must provide financial assurance for our insurance program and collateral for certain performance obligations.
 not expect a material increase in financial assurance requirements during 2016 , mix of financial assurance instruments may change.
 these financial assurance instruments are issued in normal course of business not considered indebtedness.
 currently no liability for financial assurance instruments  not reflected in our consolidated balance sheets ; we record capping , closure post-closure liabilities insurance liabilities as they incurred.
 off-balance sheet arrangements no off-balance sheet debt or similar obligations other than operating leases and financial assurances not classified as debt.
 no transactions or obligations with related parties not disclosed , consolidated into or reflected in our reported financial position or results of operations.
not guaranteed third-party debt.
 free cash flow define free cash flow  not measure determined with u. s.
 gaap  as cash provided by operating activities less purchases of property and equipment plus proceeds from sales of property and equipment presented in consolidated statements of cash flows.
 following table calculates free cash flow for years ended december 31 , 2015, 2014 2013 ( in millions of dollars ) :.
 for discussion of changes in components of free cash flow see discussion regarding cash flows by operating activities and cash flows in investing activities elsewhere in management 2019s discussion and analysis of financial condition results of operations.

| 2015             | 2014             | 2013
--------------------------------------------- | ---------------- | ---------------- | ----------------
cash provided by operating activities         | $ 1679.7         | $ 1529.8         | $ 1548.2
purchases of property and equipment           | -945.6 ( 945.6 ) | -862.5 ( 862.5 ) | -880.8 ( 880.8 )
proceeds from sales of property and equipment | 21.2             | 35.7             | 23.9
free cash flow                                | $ 755.3          | $ 703.0          | $ 691.3


performance graph graph shows five-year comparison of cumulative total return on our common stock , nasdaq composite index  s&p 500 index s&p 500 information technology index from april 24, 2009 through april 25 , 2014.
 past performance common stock not indicative of future performance common stock.
 comparison of 5 year cumulative total return* among netapp , inc. , nasdaq composite index  s&p 500 index s&p 500 information technology index.
 believe factors may cause market price of our common stock to fluctuate significantly.
 see 201citem 1a.
 risk factors. 201d sale of unregistered securities

| 4/09     | 4/10     | 4/11     | 4/12     | 4/13     | 4/14
------------------------------ | -------- | -------- | -------- | -------- | -------- | --------
netapp inc .                   | $ 100.00 | $ 189.45 | $ 284.75 | $ 212.19 | $ 190.66 | $ 197.58
nasdaq composite               | 100.00   | 144.63   | 170.44   | 182.57   | 202.25   | 253.22
s&p 500                        | 100.00   | 138.84   | 162.75   | 170.49   | 199.29   | 240.02
s&p 500 information technology | 100.00   | 143.49   | 162.37   | 186.06   | 189.18   | 236.12


stock performance graph graph sets cumulative total shareholder return on our series a , series b series c common stock compared with cumulative total return of companies in standard and poor 2019s 500 stock index ( 201cs&p 500 index 201d ) and peer group of companies of cbs corporation class b common stock  news corporation class a common stock scripps network interactive , inc. time warner , inc. viacom , inc.
 class b common stock walt disney company.
 graph assumes $ 100 invested on september 18 , 2008 , date our common stock began trading , in each of our series a common stock series b common stock series c common stock , s&p 500 index , and stock of peer group companies  including reinvestment of dividends  for period september 18 , 2008 through december 31 , 2008 and years ended december 31 , 2009 , 2010 2011.
 of cash on hand , cash generated by operations , borrowings under revolving credit facility future financing transactions.
 under program  management authorized to purchase shares through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws other legal requirements subject to stock price  business conditions  market conditions other factors.
 repurchase program does not expiration date.
 above repurchases funded using cash on hand.
 no repurchases of series a common stock or series b common stock during three months ended december 31 , 2011.
 december 31 .

| december 31 2008 | december 31 2009 | december 31 2010 | december 31 2011
---------- | ---------------- | ---------------- | ---------------- | ----------------
disca      | $ 102.53         | $ 222.09         | $ 301.96         | $ 296.67
discb      | $ 78.53          | $ 162.82         | $ 225.95         | $ 217.56
disck      | $ 83.69          | $ 165.75         | $ 229.31         | $ 235.63
s&p 500    | $ 74.86          | $ 92.42          | $ 104.24         | $ 104.23
peer group | $ 68.79          | $ 100.70         | $ 121.35         | $ 138.19


gain or loss on ownership change in map results from contributions to of environmental capital expenditures leased property acquisitions funded by marathon ashland.
 with map 2019s limited liability company agreement certain environmental capital expenditures acquisitions of leased properties funded by original contributor no change in ownership interest may result from contributions.
 excess of ashland funded improvements over marathon funded improvements results in net gain excess of marathon funded improvements over ashland funded results in net loss.
 cost of revenues increased by $ 5. 822 billion in 2004 from 2003 $ 6. 040 billion in 2003 from 2002.
 increases primarily in rm&t segment result from higher acquisition costs for crude oil refined products refinery charge blend feedstocks increased manufacturing expenses.
 selling  general administrative expenses increased by $ 105 million in 2004 from 2003 $ 97 million in 2003 from 2002.
 increase in 2004 due to increased stock-based compensation higher costs with business transformation outsourcing.
 2004 results impacted by start-up costs lng project in equatorial guinea increased cost of complying with governmental regulations.
 increase in 2003 due to increased employee benefit expenses increased pension expense changes in actuarial assumptions decrease in realized returns on plan assets ) other employee related costs.
 during 2003 recorded charge of $ 24 million related to organizational business process changes.
 inventory market valuation reserve ( 2018 2018imv 2019 2019 ) established to reduce cost basis of inventories to current market value.
 establish imv reserve when crude oil prices fall below $ 22 per barrel.
 2002 results of operations include credits to income from operations of $ 71 million reversing imv reserve at december 31 , 2001.
 net interest other financial costs decreased by $ 25 million in 2004 from 2003 $ 82 million in 2003 from 2002.
decrease in 2004 due to increase in interest income.
 decrease in 2003 due to increase in capitalized interest related to increased long-term construction projects favorable effect of interest rate swaps favorable effect of reduction in interest on tax deficiencies increased interest income on investments.
 included in net interest other financing costs are foreign currency gains of $ 9 million , $ 13 million $ 8 million for 2004 , 2003 2002.
 loss from early extinguishment of debt in 2002 attributable to retirement of $ 337 million aggregate principal debt in loss of $ 53 million.
 minority interest in income of map  ashland 2019s 38 percent ownership interest  increased by $ 230 million in 2004 from 2003 $ 129 million in 2003 from 2002.
 map income higher in 2004 compared to 2003 2003 2002 rm&t segment.
 minority interest in loss of equatorial guinea lng holdings limited  gepetrol 2019s 25 percent ownership interest  was $ 7 million in 2004 from gepetrol 2019s share of start-up costs associated with lng project in equatorial guinea.
 provision for income taxes increased by $ 143 million in 2004 from 2003 by $ 215 million in 2003 from 2002 due to $ 388 million and $ 720 million increases in income before income taxes.
 effective tax rate for 2004 was 36. 6 percent compared to 36. 6 percent and 42. 1 percent for 2003 and 2002.
 higher rate in 2002 due to united kingdom enactment of supplementary 10 percent tax on profits from north sea oil and gas production retroactively effective to april 17 , 2002.
 in 2002 recognized one-time noncash deferred tax adjustment of $ 61 million result of rate increase.
 analysis of effective tax rate for periods presented.
 deferred tax effect related to enactment of supplemental tax.
increased effective tax rate 7. 0 percent

| 2004             | 2003             | 2002
------------------------------------------------------------- | ---------------- | ---------------- | ----------------
statutory tax rate                                            | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % )
effects of foreign operations ( a )                           | 1.3              | -0.4 ( 0.4 )     | 5.6
state and local income taxes after federal income tax effects | 1.6              | 2.2              | 3.9
other federal tax effects                                     | -1.3 ( 1.3 )     | -0.2 ( 0.2 )     | -2.4 ( 2.4 )
effective tax rate                                            | 36.6% ( 36.6 % ) | 36.6% ( 36.6 % ) | 42.1% ( 42.1 % )


notes to consolidated financial statements union pacific corporation and subsidiary companies for this report  unless context otherwise requires references to 201ccorporation 201d , 201ccompany 201d , 201cupc 201d , 201cwe 201d  201cus 201d  201cour 201d mean union pacific corporation and subsidiaries  including union pacific railroad company  separately referred to as 201cuprr 201d or 201crailroad 201d.
 1.
 nature of operations segmentation 2013 we are class i railroad operating in u. s.
 network includes 31974 route miles  linking pacific coast gulf coast ports with midwest eastern u. s.
 gateways providing several corridors to key mexican gateways.
 own 26012 miles operate on remainder to trackage rights or leases.
 serve western two-thirds of country maintain coordinated schedules with other rail carriers for handling of freight to from atlantic coast , pacific coast southeast southwest , canada  mexico.
 export and import traffic moved through gulf coast pacific coast ports across mexican and canadian borders.
 railroad , with subsidiaries rail affiliates is our one reportable operating segment.
 provide review revenue by commodity group analyze net financial results of railroad as one segment due to integrated nature of rail network.
 following table provides freight revenue by commodity group : millions 2014 2013 2012.
 revenues principally derived from customers domiciled in u. s. , ultimate points of origination or destination for some products transported outside u. s.
 each commodity groups includes revenue from shipments to and from mexico.
 included in table revenues from our mexico business amounted to $ 2. 3 billion in 2014 , $ 2. 1 billion in 2013 , and $ 1.9 billion in 2012.
 basis presentation 2013 consolidated financial statements presented accordance with accounting principles accepted.
 ) codified in financial accounting standards board ( fasb ) accounting standards codification ( asc ).
 2.
 significant accounting policies principles of consolidation 2013 consolidated financial statements include accounts of union pacific corporation subsidiaries.
 investments in affiliated companies ( 20% ( 20 % ) to 50% ( 50 % ) owned ) accounted for using equity method accounting.
 intercompany transactions eliminated.
 no less than majority-owned investments require consolidation under variable interest entity requirements.
 cash cash equivalents 2013 cash equivalents consist investments with original maturities of three months or less.
 accounts receivable 2013 includes receivables reduced by allowance for doubtful accounts.
 allowance based upon historical losses credit worthiness customers current economic conditions.
 receivables not expected to be collected in one year associated allowances classified as other assets in consolidated statements financial position.

millions                | 2014    | 2013    | 2012
----------------------- | ------- | ------- | -------
agricultural products   | $ 3777  | $ 3276  | $ 3280
automotive              | 2103    | 2077    | 1807
chemicals               | 3664    | 3501    | 3238
coal                    | 4127    | 3978    | 3912
industrial products     | 4400    | 3822    | 3494
intermodal              | 4489    | 4030    | 3955
total freight revenues  | $ 22560 | $ 20684 | $ 19686
other revenues          | 1428    | 1279    | 1240
total operatingrevenues | $ 23988 | $ 21963 | $ 20926


management 2019s discussion analysis 126 jpmorgan chase & co. /2014 annual report useful as current view of credit exposure , net fair value of derivative receivables not capture potential future variability of credit exposure.
 to capture potential future variability credit exposure firm calculates client-by-client basis three measures of potential derivatives-related credit loss : peak , derivative risk equivalent ( 201cdre 201d )  average exposure ( 201cavg 201d ).
 these measures all incorporate netting and collateral benefits , where applicable.
 peak exposure to counterparty is extreme measure of exposure calculated at 97. 5% ( 97. 5 % ) confidence level.
 dre exposure is measure expresses risk of derivative exposure basis equivalent to risk of loan exposures.
 measurement done by equating unexpected loss in derivative counterparty exposure ( consideration loss volatility credit rating counterparty ) with unexpected loss in loan exposure ( only credit rating counterparty ).
 dre is less extreme measure of potential credit loss than peak primary measure used by firm for credit approval of derivative transactions.
 avg is measure of expected fair value of firm 2019s derivative receivables at future time periods including benefit of collateral.
 avg exposure over total life of derivative contract used as primary metric for pricing purposes used to calculate credit capital and cva  described.
 three year avg exposure was $ 37. 5 billion and $ 35. 4 billion at december 31 , 2014 and 2013 , respectively compared with derivative receivables , net of all collateral , of $ 59. 4 billion and $ 51. 3 billion at december 31 , 2014 and 2013 , respectively.
 fair value of firm 2019s derivative receivables incorporates adjustment , cva , to reflect credit quality of counterparties.
cva based on firm 2019s avg to counterparty and counterparty 2019s credit spread in credit derivatives market.
 primary components of changes in cva are credit spreads , new deal activity unwinds  changes in underlying market environment.
 firm believes active risk management essential to controlling dynamic credit risk in derivatives portfolio.
 firm 2019s risk management process potential impact of wrong-way risk  as potential for increased correlation between firm 2019s exposure to counterparty ( avg ) and counterparty 2019s credit quality.
 many factors may influence nature magnitude of these correlations over time.
 correlations identified firm may adjust cva associated with counterparty 2019s avg.
 firm risk manages exposure to changes in cva by entering into credit derivative transactions  interest rate  foreign exchange , equity and commodity derivative transactions.
 accompanying graph shows exposure profiles to firm 2019s current derivatives portfolio over next 10 years as calculated by dre and avg metrics.
 two measures show exposure will decline after first year  if no new trades added to portfolio.
 following table summarizes ratings profile by derivative counterparty of firm 2019s derivative receivables  including credit derivatives , net of other liquid securities collateral  for dates indicated.
 ratings scale based on firm 2019s internal ratings  correspond to ratings as defined by s&p and moody 2019s.
 ratings profile of derivative receivables rating equivalent 2014 2013 ( a ) december 31 , ( in millions , except ratios ) exposure net of all collateral % ( % ) of exposure net of all collateral exposure net of all collateral % ( % ) of exposure net of all collateral.
 prior period amounts revised to conform with current period presentation.

rating equivalent december 31 ( in millions except ratios ) | rating equivalent exposure net of all collateral | rating equivalent % (  % ) of exposure net of all collateral | exposure net of all collateral | % (  % ) of exposure net of all collateral
----------------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------------------ | ------------------------------ | ------------------------------------------
aaa/aaa to aa-/aa3                                          | $ 19202                                          | 32% ( 32 % )                                                 | $ 12953                        | 25% ( 25 % )
a+/a1 to a-/a3                                              | 13940                                            | 24                                                           | 12930                          | 25
bbb+/baa1 to bbb-/baa3                                      | 19008                                            | 32                                                           | 15220                          | 30
bb+/ba1 to b-/b3                                            | 6384                                             | 11                                                           | 6806                           | 13
ccc+/caa1 and below                                         | 837                                              | 1                                                            | 3415                           | 7
total                                                       | $ 59371                                          | 100% ( 100 % )                                               | $ 51324                        | 100% ( 100 % )


royal caribbean cruises ltd.
 79 notes to consolidated financial statements in 2012  determined implied fair value of good- will for pullmantur reporting unit was $ 145. 5 mil- lion recognized impairment charge of $ 319. 2 million based on probability-weighted discounted cash flow model discussed below.
 impair- ment charge recognized in earnings during fourth quarter of 2012 reported within impair- ment of pullmantur related assets within consoli- dated statements of comprehensive income ( loss ).
 during fourth quarter of 2014  performed qualitative assessment of more-likely- than-not royal caribbean international reporting unit 2019s fair value was less than carrying amount before applying two-step goodwill impair- ment test.
 qualitative analysis included assessing impact of factors general economic conditions , limitations on accessing capital  changes in forecasted operating results  changes in fuel prices fluctuations in foreign exchange rates.
 based qualitative assessment concluded more-likely-than-not estimated fair value of royal caribbean international reporting unit exceeded carrying value did not pro- ceed to two-step goodwill impairment test.
 no indicators of impairment exist primarily because reporting unit 2019s fair value has consistently exceeded carrying value by significant margin  financial performance solid in mixed economic environments forecasts of operating results reporting unit appear suffi- cient to support carrying value.
 performed annual impairment review of goodwill for pullmantur 2019s reporting unit during fourth quarter of 2014.
 did not perform quali- tative assessment but proceeded directly to two-step goodwill impairment test.
 estimated fair value of pullmantur reporting unit using probability-weighted discounted cash flow model.
principal assumptions in discounted cash flow model are projected operating results  weighted- average cost of capital  terminal value.
 impacting these assumptions are transfer of vessels from other cruise brands to pullmantur.
 discounted cash flow model used 2015 pro- jected operating results as base.
 added future years 2019 cash flows assuming multiple rev- enue and expense scenarios reflect impact of different global economic environments beyond 2015 on pullmantur 2019s reporting unit.
 assigned probability to each revenue and expense scenario.
 discounted projected cash flows using rates specific to pullmantur 2019s reporting unit based on weighted-average cost of capital.
 based probability-weighted discounted cash flows deter- mined fair value of pullmantur reporting unit exceeded carrying value by approximately 52% ( 52 % ) in no impairment to pullmantur 2019s goodwill.
 pullmantur is brand targeted at spanish  portuguese latin american markets  with increasing focus on latin america.
 persistent economic instability in these markets created uncertainties in forecasting operating results and future cash flows in impairment analyses.
 continue to monitor economic events in markets for potential impact on pullmantur 2019s business and valuation.
 estimation of fair value utilizing discounted expected future cash flows includes uncertainties require significant judgment when making assumptions of expected revenues operating costs marketing  sell- ing and administrative expenses interest rates ship additions retirements assumptions regarding cruise vacation industry 2019s competitive environment general economic and business conditions  other.
if changes to projected future cash flows used in impairment analyses, especially in net yields or if certain transfers of vessels from other cruise brands to pullmantur fleet not take place, possible impairment charge of pullmantur 2019s reporting unit 2019s goodwill may be required.
 planned transfers of vessels to pullmantur fleet significant to projected future cash flows.
 if transfers not occur , we likely fail step one of impairment test.
 note 4.
 intangible assets assets are reported in other assets in consolidated balance sheets consist of follow- ing ( in thousands ) :.
 during fourth quarter of 2014 , 2013 and 2012  performed annual impairment review of pullmantur 2019s trademarks and trade names using discounted cash flow model and relief-from-royalty method to compare fair value of indefinite-lived intan- gible assets to carrying value.
 royalty rate used based on comparable royalty agreements in tourism and hospitality industry.
 used dis- count rate comparable to rate used in valuing pullmantur reporting unit in goodwill impairment test.
 based on results of testing did not

| 2014             | 2013
-------------------------------------------------------------------------- | ---------------- | --------
indefinite-life intangible asset 2014pullmantur trademarks and trade names | $ 214112         | $ 204866
foreign currency translation adjustment                                    | -26074 ( 26074 ) | 9246
total                                                                      | $ 188038         | $ 214112


shareowner return performance graph performance graph and related information not deemed 201csoliciting material 201d or to be 201cfiled 201d with sec , nor information incorporated into future filing under securities act of 1933 or securities exchange act of 1934 , each as amended , except company specifically incorporates such information into such filing.
 graph shows five year comparison of cumulative total shareowners 2019 returns for class b common stock , standard & poor 2019s 500 index , and dow jones transportation average.
 comparison of total cumulative return on investment , is change in quarterly stock price plus reinvested dividends for each quarterly periods , assumes $ 100 invested on december 31 , 2008 in standard & poor 2019s 500 index , dow jones transportation average , and class b common stock.

| 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 107.75   | $ 140.39   | $ 145.84   | $ 151.44   | $ 221.91
standard & poor 2019s 500 index  | $ 100.00   | $ 126.45   | $ 145.49   | $ 148.55   | $ 172.30   | $ 228.09
dow jones transportation average | $ 100.00   | $ 118.59   | $ 150.30   | $ 150.31   | $ 161.56   | $ 228.42


activity related to restructuring liability for 2004 in thousands ) : non-operating items interest income increased $ 1. 7 million to $ 12. 0 million in 2005 from $ 10. 3 million in 2004.
 increase mainly result of higher returns on invested funds.
 interest expense decreased $ 1. 0 million  or 5% ( 5 % ) to $ 17. 3 million in 2005 from $ 18. 3 million in 2004 result of exchange of newly issued stock for portion outstanding convertible debt in second half of 2005.
 result of issuance during 2005 of common stock in exchange for convertible subordinated notes recorded non- cash charge of $ 48. 2 million.
 charge related to incremental shares issued in transactions over number shares issued upon conversion of notes under original terms.
 liquidity capital resources incurred operating losses since inception financed operations principally through public and private offerings of equity and debt securities  strategic collaborative agreements research development funding  development milestones royalties on sales products  investment income proceeds from issuance of stock under employee benefit programs.
 at december 31 , 2006  had cash , cash equivalents marketable securities of $ 761. 8 million  increase of $ 354. 2 million from $ 407. 5 million at december 31 , 2005.
 increase result of : 2022 $ 313. 7 million in net proceeds from september 2006 public offering of common stock ; 2022 $ 165. 0 million from up-front payment signing janssen agreement ; 2022 $ 52. 4 million from issuance of common stock under employee benefit plans ; 2022 $ 30. 0 million from sale of shares of altus pharmaceuticals inc.
 common stock and warrants to purchase altus common stock.
cash inflows offset by significant cash expenditures in 2006 related to research and development expenses sales  general administrative expenses.
 capital expenditures for property and equipment during 2006 were $ 32. 4 million.
 at december 31 , 2006 had $ 42. 1 million in aggregate principal amount of 2007 notes and $ 59. 6 million in principal 2011 notes outstanding.
 2007 notes due in september 2007 convertible into common stock at option of holder at price equal to $ 92. 26 per share subject to adjustment under certain circumstances.
 in february 2007 announced will redeem 2011 notes on march 5, 2007.
 2011 notes convertible into shares common stock at option holder at price equal to $ 14. 94 per share.
 expect holders of 2011 notes will to convert notes into stock will issue approximately 4. 0 million.
 required to repay 2011 notes not converted at rate of $ 1003. 19 per $ 1000 principal amount includes principal and interest accrue to redemption date.
 liability as of december 31  payments in 2004 cash received from sublease  net of operating costs in 2004 additional charge in liability as of december 31 lease restructuring liability other operating lease liability $ 69526 $ ( 31550 ) $ 293 $ 17574 $ 55843.
 activity related to restructuring liability for 2004 : non-operating items interest income increased $ 1. 7 million to $ 12. 0 million in 2005 from $ 10. 3 million in 2004.
 increase result of higher returns on invested funds.
 interest expense decreased $ 1. 0 million  or 5% ( 5 % )  to $ 17. 3 million in 2005 from $ 18. 3 million in 2004 result of exchange of newly issued stock for portion of outstanding convertible debt in second half of 2005.
result of issuance during 2005 of common stock in exchange for convertible subordinated notes recorded non- cash charge of $ 48. 2 million.
 charge related to incremental shares issued in transactions over number shares issued upon conversion of notes under original terms.
 liquidity capital resources incurred operating losses since inception financed operations principally through public and private offerings of equity and debt securities strategic collaborative agreements research development funding  development milestones royalties on sales products investment income proceeds from issuance of stock under employee benefit programs.
 at december 31, 2006  had cash , cash equivalents marketable securities of $ 761. 8 million  increase of $ 354. 2 million from $ 407. 5 million at december 31 , 2005.
 increase primarily result of : 2022 $ 313. 7 million in net proceeds from september 2006 public offering of common stock ; 2022 $ 165. 0 million from up-front payment with signing janssen agreement ; 2022 $ 52. 4 million from issuance of common stock under employee benefit plans ; 2022 $ 30. 0 million from sale of shares of altus pharmaceuticals inc.
 common stock and warrants to purchase altus common stock.
 cash inflows partially offset by significant cash expenditures in 2006 related to research and development expenses sales  general administrative expenses.
 capital expenditures for property and equipment during 2006 were $ 32. 4 million.
 at december 31 , 2006 had $ 42. 1 million in aggregate principal amount of 2007 notes and $ 59. 6 million in aggregate principal amount of 2011 notes outstanding.
 2007 notes due in september 2007 convertible into common stock at option of holder at price equal to $ 92. 26 per share  subject to adjustment under certain circumstances.
 in february 2007 announced will redeem 2011 notes on march 5 , 2007.
2011 notes convertible into shares common stock at option of holder price equal to $ 14. 94 per share.
 expect holders 2011 notes elect to convert notes into stock we will issue approximately 4. 0 million.
 required to repay 2011 notes not converted at rate of $ 1003. 19 per $ 1000 principal amount includes principal and interest accrue to redemption date.
 liability as of december 31 , payments in 2004 cash received from sublease , net of operating costs in 2004 additional charge in liability as of december 31 , lease restructuring liability other operating lease liability $ 69526 $ ( 31550 ) $ 293 $ 17574 $ 55843

| liability as of december 31 2003 | cash payments in 2004 | cash received from sublease net of operating costs in 2004 | additional charge in 2004 | liability as of december 31 2004
----------------------------------------------------------------- | -------------------------------- | --------------------- | ---------------------------------------------------------- | ------------------------- | --------------------------------
lease restructuring liability and other operating lease liability | $ 69526                          | $ -31550 ( 31550 )    | $ 293                                                      | $ 17574                   | $ 55843


management 2019s discussion analysis supplemental financial information disclosures income tax matters effective tax rate from continuing operations.
 adjusted effective income tax rate 2014 non-gaap1 30. 8% ( 30. 8 % ) 31. 6% ( 31. 6 % ) 32. 3% ( 32. 3 % ) 1.
 beginning 2017  income tax consequences employee share-based awards recognized in provision income taxes income statements excluded from intermittent net discrete tax provisions benefits ) adjustment anticipate conversion activity each year.
 see note 2 to financial statements adoption accounting update improvements to employee share-based payment accounting.
 for 2015  adjusted effective income tax rate excludes dva.
 for further information non-gaap measures see 201cselected non-gaap financial information 201d.
 effective tax rate from continuing operations for 2017 included intermittent net discrete tax provision of $ 968 million related to impact of tax act  partially offset by net discrete tax benefits associ- ated with remeasurement of reserves related interest due to new information status of multi-year irs tax examinations.
 tax act  enacted december 22, 2017  revised.
 corporate income tax law by reducing corporate income tax rate to 21% ( 21 % ) implementing modified territorial tax system includes one-time transition tax on repatriated earnings of non-u.
 subsidiaries imposes minimum tax on global intangible low-taxed income ( 201cgilti 201d ) alternative base erosion anti-abuse tax ( 201cbeat 201d ) on.
 corpora- tions make deductible payments to non-u.
 related persons in excess of specified amounts broadens tax base by partially eliminating tax deductions for certain historically deductible expenses (. fdic premiums executive compensation ).
recorded approximate $ 1. 2 billion net discrete tax provision result of enactment tax act  primarily from remeasurement of deferred tax assets using lower enacted corporate tax rate.
 provi- sion incorporates best available information enactment date assumptions based current interpretation of tax act.
 estimates may change receive additional clarification implementa- tion guidance from u. s.
 treasury department interpretation of tax act evolves over time.
 ultimate impact of income tax effects tax act deter- mined in with preparation of u. s.
 consoli- dated federal income tax return.
 current assumptions  estimates interpretations related tax act factors expect effective tax rate from continuing operations for 2018 to be approximately 22% ( 22 % ) to 25% ( 25 % ), depending on factors geographic mix of earnings employee share- based awards ( see 201cforward-looking statements 201d ).
 subsequent to release of firm 2019s 2017 earnings on january 18 , 2018  estimates related to net discrete tax provision associated with enactment tax act revised resulting in $ 43 million increase in provi- sion for income taxes reallocation of impacts among segments.
 decreased diluted eps and diluted eps from continuing operations by $ 0. 03 and $ 0. 02 in fourth quarter and year ended december 31 , 2017 , respectively.
 business segment basis  change resulted in $ 89 million increase in provision for income taxes for wealth management , $ 45 million decrease for institutional securi- ties  $ 1 million decrease for investment management.
 effective tax rate from continuing operations for 2016 included intermittent net discrete tax benefits of $ 68 million  primarily related to remeasurement of reserves and related interest due to new information regarding status of multi- year irs tax examinations  partially offset by adjustments for other tax matters.
 effective tax rate from operations for 2015 included intermittent net discrete tax benefits of $ 564 million associated with repatriation of non-u. s.
 earn- ings at cost lower than originally estimated due to internal restructuring to simplify legal entity organization u.
. s.
 bank subsidiaries provide loans to variety of customers from large corpo- rate institutional clients to high net worth individuals through u.
 bank subsidiaries  morgan stanley bank.
 ( 201cmsbna 201d ) morgan stanley private bank  national association ( 201cmspbna 201d ) collectively 201cu.
 bank subsidiaries 201d ).
 lending activities in institutional securities business segment include loans lending commitments to corporate clients.
 lending activ- ities in wealth management business segment include securities-based lending allows clients to borrow december 2017 form 10-k 52

| 2017             | 2016             | 2015
----------------------------------------------- | ---------------- | ---------------- | ----------------
u.s . gaap                                      | 40.1% ( 40.1 % ) | 30.8% ( 30.8 % ) | 25.9% ( 25.9 % )
adjusted effective income taxrate 2014non-gaap1 | 30.8% ( 30.8 % ) | 31.6% ( 31.6 % ) | 32.3% ( 32.3 % )


may 20 , 2015  aon plc issued $ 600 million of 4. 750% ( 4. 750 % ) senior notes due may 2045.
 4. 750% ( 4. 750 % ) notes due may 2045 fully unconditionally guaranteed by aon corporation.
 used proceeds issuance for general corporate purposes.
 september 30 , 2015 , $ 600 million of 3. 50% ( 3. 50 % ) senior notes issued by aon corporation matured repaid.
 november 13 , 2015  aon plc issued $ 400 million of 2. 80% ( 2. 80 % ) senior notes due march 2021.
 2. 80% ( 2. 80 % ) notes due march 2021 unconditionally guaranteed by aon corporation.
 used proceeds issuance for general corporate purposes.
 credit facilities as of december 31, 2015 two committed credit facilities outstanding : $ 400 million u. s.
 credit facility expiring march 2017 ( "2017 facility" ) and $ 900 million multi-currency u. s.
 credit facility expiring february 2020 ( "2020 facility" ).
 2020 facility entered into february 2, 2015 replaced previous 20ac650 million european credit facility.
 each facilities support commercial paper obligations general working capital needs.
 facilities includes customary representations, warranties covenants financial covenants require maintain specified ratios of adjusted consolidated ebitda to consolidated interest expense consolidated debt to adjusted consolidated ebitda tested quarterly.
 at december 31 , 2015  borrowings under 2017 facility or 2020 facility in compliance with financial covenants all other covenants during twelve months ended december 31 , 2015.
 effective february 2 , 2016 2020 facility terms extended for 1 year expire february 2021 total debt-to-ebitda ratio at december 31 , 2015 and 2014  calculated as follows:.
use ebitda  as defined by financial covenants as non-gaap measure.
 supplemental information related to ebitda represents measure not in accordance with u. s.
 gaap should be viewed in addition to  not instead of consolidated financial statements and notes.
 shelf registration statement on september 3 , 2015  filed shelf registration statement with sec , registering offer and sale time of indeterminate amount of , among other securities  debt securities  preference shares  class a ordinary shares convertible securities.
 ability to access market as source liquidity dependent on investor demand  market conditions other factors.

years ended december 31,          | 2015 | 2014
--------------------------------- | ---- | ----
net income                        | 1422 | 1431
interest expense                  | 273  | 255
income taxes                      | 267  | 334
depreciation of fixed assets      | 229  | 242
amortization of intangible assets | 314  | 352
total ebitda                      | 2505 | 2614
total debt                        | 5737 | 5582
total debt-to-ebitda ratio        | 2.3  | 2.1


morgan stanley notes to consolidated financial statements 2014 ( continued ) lending commitments.
 primary lending commitments originated by company secondary lending commitments purchased from third parties market.
 commitments include lending commitments to investment grade and non-investment grade companies with corporate lending other business activities.
 commitments for secured lending transactions.
 secured lending commitments extended by company to companies secured by real estate or other physical assets of borrower.
 loans under arrangements at variable rates provide for over-collateralization based creditworthiness of borrower.
 forward starting reverse repurchase agreements.
 company entered into forward starting securities purchased under agreements to resell ( agreements trade date at or prior to december 31 , 2013 settle subsequent to period-end ) primarily secured by collateral from u. s.
 government agency securities other sovereign government obligations.
 commercial and residential mortgage-related commitments.
 company enters into forward purchase contracts involving residential mortgage loans residential mortgage lending commitments to individuals residential home equity lines of credit.
 company enters into commitments to originate commercial and residential mortgage loans.
 underwriting commitments.
 company provides underwriting commitments in with capital raising sources to diverse group of corporate and other institutional clients.
 other lending commitments.
 commitments include commercial lending commitments to small businesses commitments related to securities-based lending activities company 2019s wealth management business segment.
 company sponsors several non-consolidated investment funds for third-party investors company acts as general partner of and investment advisor to funds commits to invest minority of capital of funds subscribing third-party investors contributing majority.
company 2019s employees including senior officers directors may participate on same terms conditions as other investors in funds forms for client investment except company may waive or lower fees and charges for employees.
 company has contractual capital commitments  guarantees  lending facilities counterparty arrangements with respect to these investment funds.
 premises and equipment.
 company has non-cancelable operating leases covering premises and equipment ( excluding commodities operating leases  shown separately ).
 at december 31 , 2013  future minimum rental commitments under such leases ( net of subleases principally on office rentals ) were as follows ( dollars in millions ) : year ended operating premises leases.

year ended | operating premises leases
---------- | -------------------------
2014       | $ 672
2015       | 656
2016       | 621
2017       | 554
2018       | 481
thereafter | 2712


off-balance sheet commitments lease commitments company leases equipment facilities including retail space under noncancelable operating lease arrangements.
 company utilize other off-balance sheet financing arrangements.
 major facility leases for terms not exceeding 10 years provide renewal options for terms not exceeding five additional years.
 leases for retail space for terms from five to 20 years  majority for 10 years  often contain multi-year renewal options.
 as of september 29 , 2012  company total future minimum lease payments under noncancelable operating leases were $ 4. 4 billion  $ 3. 1 billion related to leases for retail space.
 rent expense under all operating leases including cancelable and noncancelable leases was $ 488 million , $ 338 million $ 271 million in 2012 , 2011 2010  respectively.
 future minimum lease payments under noncancelable operating leases remaining terms in excess of one year as of september 29 2012 are as follows ( in millions ) :.
 commitments as of september 29 2012 company had outstanding off-balance sheet third-party manufacturing commitments component purchase commitments of $ 21. 1 billion.
 in addition to off-balance sheet commitments company had outstanding obligations of $ 988 million as of september 29  2012 mainly of commitments to acquire capital assets  including product tooling manufacturing process equipment  commitments related to advertising , research and development , internet telecommunications services other obligations.
 contingencies company subject to legal proceedings and claims arisen in ordinary course of business not fully adjudicated discussed in part i , item 3 of form 10-k under heading 201clegal proceedings 201d and in part i , item 1a of form 10-k under heading 201crisk.201d in opinion of management , not reasonable possibility company may have incurred material loss  material loss in excess of recorded accrual , with respect to loss contingencies.
 outcome of litigation is inherently uncertain.
 although management considers likelihood of such outcome remote , if one or more legal matters resolved against company in reporting period for amounts in excess of management 2019s expectations , company 2019s consolidated financial statements for reporting period could be materially adversely affected.
 apple inc.
 vs samsung electronics co. , ltd , et al.
 on august 24, 2012 , jury returned verdict awarding company $ 1. 05 billion in lawsuit against samsung electronics affiliated parties in united states district court , northern district of california , san jose division.
 award subject to entry final judgment may be subject to appeal , company not recognized award in consolidated financial statements for year ended september 29 , 2012.

2013                         | $ 516
---------------------------- | ------
2014                         | 556
2015                         | 542
2016                         | 513
2017                         | 486
thereafter                   | 1801
total minimum lease payments | $ 4414


table summarizes short-term borrowing activity for awcc for years ended december 31:.
 credit facility requires company to maintain ratio of consolidated debt to consolidated capitalization of not more than 0. 70 to 1. 00.
 ratio as of december 31 , 2017 was 0. 59 to 1. 00.
 none of company 2019s borrowings subject to default or prepayment result of downgrading of securities , although downgrading could increase fees and interest charges under company 2019s credit facility.
 part of normal course of business , company routinely enters contracts for purchase and sale of water , energy , fuels other services.
 these contracts contain express provisions or permit company counterparties to demand adequate assurance of future performance when reasonable grounds for so.
 in accordance with contracts applicable contract law, if company is downgraded by credit rating agency , especially if downgrade to level below investment grade , possible counterparty would attempt to rely on downgrade as basis for demand for adequate assurance of future performance.
 depending on company 2019s net position with counterparty , demand could be for posting of collateral.
 in absence of expressly agreed provisions specify collateral must be provided, obligation to supply collateral requested function of facts and circumstances of company 2019s situation at time of demand.
 if company can reasonably claim willing and financially able to perform obligations, may be possible no collateral need to be posted or only amount equal to two or three months of future payments should be sufficient.
 company does not expect to post any collateral material adverse impact on company 2019s results of operations , financial position or cash flows.
 note 12 : general taxes table summarizes components of general tax expense for years ended december 31 : 2017 2016 2015 gross receipts and franchise.
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259 $ 258 243

| 2017             | 2016
------------------------------------------------------- | ---------------- | ----------------
average borrowings                                      | $ 779            | $ 850
maximum borrowings outstanding                          | 1135             | 1016
weighted average interest rates computed on daily basis | 1.24% ( 1.24 % ) | 0.78% ( 0.78 % )
weighted average interest rates as of december 31       | 1.61% ( 1.61 % ) | 0.98% ( 0.98 % )


18.
 financial instruments : derivatives and hedging financial accounting standards board 2019s statement no.
 133 , 201caccounting for derivative instruments and hedging activities , 201d ( 201csfas 133 201d ) effective january 1 , 2001 requires company to recognize all derivatives on balance sheet at fair value.
 derivatives not hedges must be adjusted to fair value through income.
 if derivative is hedge  depending on nature hedge changes in fair value derivative offset against change in fair value of hedged asset , liability  or firm commitment through earnings or recognized in other comprehensive income until hedged item recognized in earnings.
 ineffective portion of derivative 2019s change in fair value immediately recognized in earnings.
 company recorded cumulative effect adjustment upon adoption of sfas 133.
 cumulative adjustment intrinsic value of hedge recorded in other comprehensive income ( $ 811 ) time value component recorded in state- ment of income ( $ 532 ), unrealized loss of $ 1343.
 transition amounts determined based on interpretive guidance issued by fasb.
 fasb continues to issue interpretive guidance could require changes in company 2019s application of standard and adjustments to transition amounts.
 sfas 133 may increase or decrease reported net income and stockholders 2019 equity prospectively depending on future levels interest rates other variables affecting fair values of derivative instruments and hedged items no effect on cash flows.
 following table summarizes notional and fair value of company 2019s derivative financial instruments at december 31 , 2001.
 notional is indication of extent of company 2019s involvement in these instruments not represent exposure to credit , interest rate or market risks.
 notional strike fair value rate maturity value.
december 31 , 2001  derivative instruments reported as obligation at fair value of $ 3205.
 offsetting adjustments represented as deferred gains or losses in accumulated other comprehensive loss of $ 2911.
 currently all derivative instruments designated as hedging instruments.
 over time unrealized gains and losses in accumulated other comprehensive loss reclassified into earnings as interest expense in same periods hedged interest payments affect earnings.
 company estimates approximately $ 1093 of current balance in accumulated other comprehensive loss reclassified into earnings within next twelve months.
 company not currently hedging exposure to variability in future cash flows for forecasted transactions other than anticipated future interest payments on existing debt.
 19.
 environmental matters management company believes properties in compliance with federal  state local ordinances and regulations regarding environmental issues.
 management not aware of environmental liability believes materially adverse impact on company 2019s financial position  results of operations or cash flows.
 management unaware of instances incur significant environmental cost if properties sold.
 20.
 segment information company reit engaged in owning managing leasing repositioning office properties in manhattan two reportable segments  office real estate and structured finance investments.
 company evaluates real estate performance allocates resources based on net operating income.
 company 2019s real estate portfolio located in one geo- graphical market of manhattan.
 primary sources of revenue from tenant rents and escalations and reimburse- ment revenue.
 real estate property operating expenses consist primarily of security , maintenance  utility costs  real estate taxes ground rent expense ( at certain applicable properties ).
december 31 , 2001 2000  total assets $ 1371577 $ 1161154 , $ 1182939 $ 1109861 repre sented real estate assets $ 188638 $ 51293 represented structured finance investments .
 years ended december 31 , 2001  2000 1999  total revenues of $ 257685 , $ 230323 $ 206017 , $ 240316 , $ 217052 $ 200751 represented revenues from real estate assets $ 17369 , $ 13271 $ 5266 revenues from structured finance investments.
 years ended december 31  2001  2000 1999  total net operating income $ 63607 , $ 53152 $ 48966 , $ 46238 , $ 39881 $ 43700 represented net operat- ing income from real estate assets $ 17369 , $ 13271 $ 5266 net operating income from structured finance investments.
 company not allocate mar- keting  general administrative expenses interest expense to structured finance segment  bases performance on individual segments prior allocating marketing general administrative expenses interest expense.
 all other expenses relate solely to real estate assets.
 no transactions between above two segments.
 sl green realty corp.
 notes to consolidated financial statements ( continued ) december 31 , 2001 ( dollars in thousands  except per share data )

| notional value | strike rate        | maturity | fair value
-------------------- | -------------- | ------------------ | -------- | ----------------
interest rate collar | $ 70000        | 6.580% ( 6.580 % ) | 11/2004  | $ -4096 ( 4096 )
interest rate swap   | $ 65000        | 4.010              | 8/2005   | $ 891


management 2019s discussion analysis of increased volumes in performance applied coatings  optical specialty materials glass business segments offset by volume declines in commodity chemicals business segment.
 volume decline due to lost sales from impact of hurricane rita .
 cost of sales percentage of sales increased to 63. 5% ( 63. 5 % ) compared to 63. 1% ( 63. 1 % ) in 2004.
 inflation  including higher coatings raw material costs higher energy costs in commodity chemicals glass segments increased cost of sales.
 selling  general administrative expense declined slightly percentage of sales to 17. 4% ( 17. 4 % ) despite increasing by $ 56 million in 2005.
 costs increased due to increased advertising in optical products segment higher expenses due to store expansions in architectural coatings segment.
 interest expense declined $ 9 million in 2005 reflecting year over year reduction in outstanding debt balance of $ 80 million.
 other charges increased $ 284 million in 2005 due to pretax charges of $ 132 million related to marvin legal settlement  net $ 18 million in insurance recoveries $ 61 million for federal glass class action antitrust legal settlement $ 34 million of direct costs related to impact of hurricanes rita katrina $ 27 million for asset impairment charge in fine chemicals segment $ 19 million for debt refinancing costs increase of $ 12 million for environmental remediation costs.
 net income earnings per share 2013 assuming dilution for 2005 were $ 596 million and $ 3. 49 compared to $ 683 million and $ 3. 95  for 2004.
net income 2005 included aftertax charges $ 117 million 68 cents a share for legal settlements net insurance ; $ 21 million 12 cents a share for direct costs impact hurricanes katrina and rita ; $ 17 million 10 cents a share asset impairment charge fine chemicals business ; $ 12 million 7 cents a share for debt refinancing costs.
 legal settlements net of insurance include aftertax charges $ 80 million for marvin legal settlement net insurance recoveries $ 37 million for impact federal glass class action antitrust legal settlement.
 net income for 2005 and 2004 included aftertax charge $ 13 million 8 cents a share $ 19 million 11 cents a share reflect net increase in current value company 2019s obligation relating to asbestos claims under ppg settlement arrangement.
 results of reportable business segments net sales segment income ( millions ) 2005 2004 industrial coatings $ 2921 $ 2818 $ 284 $ 338 performance and applied coatings 2668 2478 464 451 optical and specialty materials 867 805 158 186.
 sales of industrial coatings increased $ 103 million or 4% ( 4 % ) in 2005.
 sales increased 2% ( 2 % ) due to higher selling prices industrial and packaging coatings businesses 2% ( 2 % ) to positive effects of foreign currency translation.
 volume flat year over year increased volume in automotive coatings offset by lower volume in industrial and packaging coatings.
 segment income decreased $ 54 million in 2005.
 decrease due to adverse impact inflation including raw materials costs increases $ 170 million offset benefits higher selling prices improved sales margin mix  formula cost reductions lower manufacturing costs higher other income.
 performance and applied coatings sales increased $ 190 million or 8% ( 8 % ) in 2005.
sales increased 4% ( 4 % ) due to higher selling prices in all three operating segments 3% ( 3 % ) due increased volumes increases in aerospace architectural coatings businesses exceeded volume declines in automotive refinish  1% ( 1 % ) due to positive effects foreign currency translation.
 performance applied coatings segment income increased $ 13 million in 2005.
 segment income increased due to impact increased sales volumes higher other income offset negative impacts higher overhead costs support growth businesses particularly architectural coatings business higher manufacturing costs.
 impact higher selling prices offset adverse impact inflation including raw materials cost increases $ 75 million.
 optical and specialty materials sales increased $ 62 million or 8% ( 8 % ).
 sales increased 8% ( 8 % ) due higher sales volumes in optical products silica businesses offset lower sales volumes in fine chemicals business.
 sales increased 1% ( 1 % ) due to acquisition in optical products business decreased 1% ( 1 % ) due to lower pricing.
 segment income decreased $ 28 million.
 primary factor decreasing segment income was $ 27 million impairment charge fine chemicals business.
 impact higher sales volumes offset by higher inflation increased energy costs ; lower selling prices increased overhead costs in optical products business support growth 24 2006 ppg annual report form 10-k 4282_txt

( millions )                     | net sales 2005 | net sales 2004 | net sales 2005 | 2004
-------------------------------- | -------------- | -------------- | -------------- | -----
industrial coatings              | $ 2921         | $ 2818         | $ 284          | $ 338
performance and applied coatings | 2668           | 2478           | 464            | 451
optical and specialty materials  | 867            | 805            | 158            | 186
commodity chemicals              | 1531           | 1229           | 313            | 113
glass                            | 2214           | 2183           | 123            | 166


revenues by segment table below summarizes our revenues by reporting segment ( in millions ) :.
 integrated financial solutions ( "ifs" ) ifs segment focused on serving north american regional community bank and savings institutions market for transaction account processing , payment solutions  channel solutions  lending and wealth management solutions digital channels  risk and compliance solutions  services , capitalizing on continuing trend to outsource these solutions.
 ifs also includes corporate liquidity and wealth management solutions acquired in sungard acquisition.
 clients segment include regional community banks , credit unions commercial lenders  government institutions , merchants other commercial organizations.
 this market primarily served through integrated solutions characterized by multi-year processing contracts generate recurring revenues.
 predictable nature of cash flows from segment provides opportunities for further r investments in innovation  product integration  information and security  compliance in cost effective manner.
 solutions in segment include : 2022 core processing and ancillary applications.
 our core processing software applications designed to run banking processes for financial institution clients  including deposit and lending systems  customer management  other central management systems  serving as system of record for processed activity.
 diverse selection of market-focused core systems enables fis to compete effectively in wide range of markets.
 we offer services ancillary tof primary applications including branch automation , back office support systems compliance support.
 2022 digital solutions , including internet , mobile ebanking.
 our comprehensive suite of retail delivery applications enables financial institutions to integrate streamline customer-facing operations back-office processes improving customer interaction across all channels (. call ).
 fis' focus on consumer access driven significant market innovation in with multi-channel and multi-host solutions strategy provides tight integration of services seamless customer experience.
fis is leader in mobile banking solutions electronic banking enabling clients to manage banking payments through internet mobile devices accounting software telephone.
 our corporate electronic banking solutions provide commercial treasury capabilities including cash management services multi-bank collection disbursement services address specialized needs of corporate clients.
 fis systems provide full accounting reconciliation for such transactions serving as system of record.
 2022 fraud , risk management compliance solutions. ff our decision solutions offer spectrum of options cover account lifecycle from identify qualified account applicants to managing existing customer accounts fraud.
 applications include know-your-customer  new account decisioning opening  account transaction management  fraud management collections.
 risk management services use proprietary risk management models data sources to assist in detecting fraud assessing risk of opening new account.
 systems use combination advanced authentication procedures predictive analytics  artificial intelligence modeling proprietary shared databases to assess detect fraud risk for deposit transactions for financial institutions.
 provide outsourced risk management compliance solutions configt urable to client's regulatory risk management requirements.

| 2016   | 2015   | 2014
--------------------------- | ------ | ------ | ------
ifs                         | $ 4566 | $ 3846 | $ 3679
gfs                         | 4250   | 2360   | 2198
corporate & other           | 425    | 390    | 536
total consolidated revenues | $ 9241 | $ 6596 | $ 6413


contingent consideration of up to $ 13. 8 million.
 arrangement requires additional cash payments to former equity holders of lyric upon achievement of certain technological and product development milestones payable during period from june 2011 through june 2016.
 company estimated fair value of contingent consideration arrangement utilizing income approach.
 changes in fair value contingent consideration subsequent to acquisition date driven by assumptions to achievement of defined milestones will recognized in operating income in period of estimated fair value change.
 as of october 29, 2011  no contingent payments made fair value of contingent consideration was approximately $ 14. 0 million.
 company allocated purchase price to tangible and intangible assets acquired and liabilities assumed based on estimated fair values at date of acquisition resulting in recognition of $ 12. 2 million of ipr&d , $ 18. 9 million of goodwill $ 3. 3 million of net deferred tax liabilities.
 goodwill recognized attributable to future technologies yet to be determined assembled workforce of lyric.
 future technologies do not meet criteria for recognition separately from goodwill part of future development and growth business.
 none of goodwill expected to be deductible for tax purposes.
 company obligated to pay royalties to former equity holders of lyric on revenue recognized from sale of lyric products and licenses through earlier of 20 years or accrual of maximum of $ 25 million.
 royalty payments to lyric employees require post-acquisition services to rendered company will record these amounts as compensation expense in related periods.
 as of october 29 , 2011 no royalty payments made.
 company recognized $ 0. 2 million of acquisition-related costs expensed in third quarter of fiscal 2011.
 costs included in operating expenses in consolidated statement of income.
company not provided pro forma results of operations for integrant , audioasics and lyric as not material to company individual or aggregate basis.
 company included results of operations of each acquisition in consolidated statement of income from date of acquisition.
 7.
 deferred compensation plan investments investments in analog devices , inc.
 deferred compensation plan ( ) classified as trading.
 components of investments as of october 29 , 2011 and october 30 , 2010 were as follows:.
 fair values of investments based on published market quotes on october 29, 2011 and october 30 , 2010 .
 adjustments to fair value of  and income pertaining to deferred compensation plan investments recorded in operating expenses.
 gross realized and unrealized gains and losses from trading securities not material in fiscal 2011 , 2010 or 2009.
 company recorded corresponding liability for amounts owed to deferred compensation plan participants ( see note 10 ).
 investments designated as available to company solely for purpose of paying benefits under deferred compensation plan.
 in company became insolvent investments available to all unsecured general creditors.
.
 other investments investments consist of equity securities and other long-term investments.
 investments stated at fair value  based on market quotes or cost-basis  dependent on nature of investment  as appropriate.
 adjustments to fair value of investments classified as available-for-sale recorded as increase or decrease analog devices , inc.
 notes to consolidated financial statements 2014 (

| 2011    | 2010
-------------------------------------------- | ------- | ------
money market funds                           | $ 17187 | $ 1840
mutual funds                                 | 9223    | 6850
total deferred compensation plan investments | $ 26410 | $ 8690