goldman sachs group , inc.
 subsidiaries management 2019s discussion analysis net revenues in equities were $ 6. 60 billion , 4% ( 4 % ) lower than 2016  primarily due to lower commissions and fees reflecting decline in listed cash equity volumes.
 market volumes in.
 also declined.
 net revenues in equities client execution were lower reflecting lower net revenues in derivatives offset by higher net revenues in cash products.
 net revenues in securities services unchanged.
 operating expenses were $ 9. 69 billion for 2017  unchanged compared with 2016 due to decreased compensation and benefits expenses reflecting lower net revenues offset by increased technology expenses higher expenses related to cloud-based services and software depreciation increased consulting costs.
 pre-tax earnings were $ 2. 21 billion in 2017  54% ( 54 % ) lower than 2016.
 investing & lending investing lending includes investing activities origination of loans including relationship lending activities to provide financing to clients.
 investments and loans are typically longer-term in nature.
 make investments  some consolidated  including through merchant banking business special situations group in debt securities and loans  public and private equity securities  infrastructure and real estate entities.
 some investments made indirectly through funds we manage.
 make unsecured loans through digital platform goldman sachs secured loans through digital platform goldman sachs private bank select.
 table below presents operating results of investing & lending segment.
 operating environment.
 during 2018 investments in private equities benefited from company-specific events including sales  strong corporate performance investments in public equities reflected losses as global equity prices decreased.
investments in debt securities loans reflected growth in loans receivables higher net interest income.
 if macroeconomic concerns affect corporate performance or origination of loans or global equity prices decline net revenues in investing & lending likely negatively impacted.
 2017 higher global equity prices tighter credit spreads contributed to favorable environment for equity debt investments.
 results reflected net gains from company-specific events sales corporate performance.
 2018 versus 2017.
 net revenues in investing & lending were $ 8. 25 billion for 2018 14% ( 14 % ) higher than 2017.
 net revenues in equity securities were $ 4. 46 billion 3% ( 3 % ) lower than 2017 reflecting net losses from investments in public equities ( 2018 included $ 183 million of net losses ) compared with offset by higher net gains from investments private equities ( 2018 included $ 4. 64 billion net gains ) driven by company-specific events sales corporate performance.
 2018 60% ( % ) of net revenues in equity securities from corporate investments 40% ( 40 % ) from real estate.
 net revenues in debt securities and loans were $ 3. 80 billion  43% ( 43 % ) higher than 2017 driven by higher net interest income.
 2018 included net interest income of approximately $ 2. 70 billion compared with $ 1. 80 billion in 2017.
 provision for credit losses was $ 674 million for 2018 compared with $ 657 million for 2017 higher provision related to consumer loan growth 2018 partially offset by impairment of $ 130 million on secured loan in 2017.
 operating expenses were $ 3.37 billion for 2018 20% ( 20 % ) higher than 2017 due to increased expenses consolidated investments digital lending deposit platform increased compensation benefits expenses reflecting higher net revenues.
 pre-tax earnings $ 4. 21 billion 2018 11% ( 11 % ) higher than 2017 versus 2016.
 net revenues in investing & lending $ 7. 24 billion 2017 70% ( 70 % ) higher than 2016.
 net revenues in equity securities $ 4. 58 billion 78% ( 78 % ) higher than 2016 reflecting significant increase in net gains from private equities ( 2017 included $ 3. 82 billion net gains ) impacted by company-specific events corporate performance.
 net gains from public equities ( 2017 included $ 762 million net gains ) higher global equity prices increased.
 2017 64% ( 64 % ) net revenues in equity securities from corporate investments 36% ( 36 % ) from real estate.
 net revenues in debt securities loans $ 2. 66 billion  57% ( 57 % ) higher than 2016 reflecting higher net interest income ( 2017 included approximately $ 1. 80 billion net interest income ).
 60 goldman sachs 2018 form 10-k

$ in millions               | year ended december 2018 | year ended december 2017 | year ended december 2016
--------------------------- | ------------------------ | ------------------------ | ------------------------
equity securities           | $ 4455                   | $ 4578                   | $ 2573
debt securities and loans   | 3795                     | 2660                     | 1689
total net revenues          | 8250                     | 7238                     | 4262
provision for credit losses | 674                      | 657                      | 182
operating expenses          | 3365                     | 2796                     | 2386
pre-taxearnings             | $ 4211                   | $ 3785                   | $ 1694


refining and wholesale marketing gross margin is difference between prices of refined products sold and costs of crude oil and other charge blendstocks refined including costs to transport inputs to refineries costs of purchased products manufacturing expenses  including depreciation.
 crack spread is a measure of difference between market prices for refined products and crude oil used as indicator of impact of price on refining margin.
 crack spreads can fluctuate significantly particularly when prices refined products not move same relationship as cost of crude oil.
 performance benchmark comparison with industry participants we calculate midwest ( chicago ).
 gulf coast crack spreads closely track our operations slate products.
 posted light louisiana sweet ( 201clls 201d ) prices 6-3-2-1 ratio of products ( 6 barrels of crude oil producing 3 barrels of gasoline 2 barrels of distillate 1 barrel of residual fuel ) are used for crack spread calculation.
 following table lists calculated average crack spreads by quarter for midwest ( chicago ) gulf coast markets in 2008.
 crack spreads ( dollars per barrel ) 1st qtr 2nd qtr 3rd qtr 4th qtr 2008.
 in addition to market changes by crack spreads our refining and wholesale marketing gross margin is impacted by factors types of crude oil other charge and blendstocks processed selling prices realized for refined products impact of commodity derivative instruments used to mitigate price risk cost of purchased products for resale.
 we process significant amounts of sour crude oil can enhance our profitability compared to competitors sour crude oil typically can be purchased at discount to sweet crude.
refining and wholesale marketing gross margin impacted by changes in manufacturing costs primarily driven by maintenance activities at refineries and price of purchased natural gas for plant fuel.
 our 2008 refining and wholesale marketing gross margin key driver of 43 percent decrease in rm&t segment income compared to 2007.
 average refining and wholesale marketing gross margin per gallon decreased 37 percent  to 11. 66 cents in 2008 from 18. 48 cents in 2007  primarily due to significant rapid increases in crude oil prices early in 2008 lagging wholesale price realizations.
 our retail marketing gross margin for gasoline and distillates  difference between ultimate price paid by consumers and cost of refined products  including secondary transportation consumer excise taxes  also impacts rm&t segment profitability.
 on average demand increasing for years numerous factors including local competition  seasonal demand fluctuations available wholesale supply economic activity in marketing areas weather conditions impact gasoline and distillate demand year.
 in 2008  demand began to drop due to significant increases in retail petroleum prices broad slowdown in general activity.
 gross margin on merchandise sold at retail outlets historically more constant.
 profitability of our pipeline transportation operations primarily dependent on volumes shipped through our crude oil and refined products pipelines.
 volume of crude oil we transport affected by supply of refiner demand for crude oil in markets served directly by our crude oil pipelines.
 key factors in supply and demand balance are production levels of crude oil by producers  availability and cost of alternative modes of transportation  refinery and transportation system maintenance levels.
 volume of refined products we transport directly affected by production levels and user demand for refined products in markets served by our refined product pipelines.
in most markets  demand for gasoline peaks summer declines fall winter months, distillate demand more ratable throughout year.
 as with crude oil , other transportation alternatives system maintenance levels influence refined product movements.
 integrated gas integrated gas strategy is to link stranded natural gas resources with areas where supply gap emerging due to declining production growing demand.
 integrated gas operations include marketing transportation of products manufactured from natural gas  lng methanol , primarily in u. s. , europe west africa.
 significant lng investment is 60 percent ownership in production facility in equatorial guinea  sells lng under long-term contract at prices tied to henry hub natural gas prices.
 in 2008

crack spreads ( dollars per barrel ) | 1st qtr | 2nd qtr | 3rd qtr | 4th qtr    | 2008
------------------------------------ | ------- | ------- | ------- | ---------- | ------
chicago lls 6-3-2-1                  | $ 0.07  | $ 2.71  | $ 7.81  | $ 2.31     | $ 3.27
us gulf coast lls 6-3-2-1            | $ 1.39  | $ 1.99  | $ 6.32  | ( $ 0.01 ) | $ 2.45


comcast corporation changes in net deferred tax liability in 2015 not recorded as deferred income tax expense primarily related to decreases of $ 28 million with items in other comprehensive income ( loss ) and decreases of $ 132 million related to acquisitions in 2015.
 net deferred tax liability includes $ 23 billion related to cable franchise rights remain unchanged unless recognize impairment or dispose of cable franchise.
 as of december 31 , 2015  had federal net operating loss carryforwards of $ 135 million and state net operating loss carryforwards expire through 2035.
 december 31 2015 had foreign net operating loss carryforwards of $ 700 million related to foreign operations of nbcuni- versal  majority expire through 2025.
 determination of realization of state and foreign net operating loss carryforwards dependent on subsidiaries 2019 taxable income or loss , appor- tionment percentages  state and foreign laws change year year impact amount such carryforwards.
 recognize valuation allowance if more likely not some portion  or all of deferred tax asset will not be realized.
 as of december 31 , 2015 and 2014  valuation allowance primarily related to state and foreign net operating loss carryforwards.
 uncertain tax positions uncertain tax positions as of december 31 , 2015 totaled $ 1. 1 billion  exclude federal benefits on state tax positions recorded as deferred income taxes.
 included in uncertain tax positions was $ 220 million related to tax positions of nbcuniversal and nbcuniversal enterprise for indemnified by ge.
 if to recognize tax benefit for uncertain tax positions in future , $ 592 million would impact effective tax rate remaining amount would increase deferred income tax liability.
amount timing of recognition of tax benefit dependent on completion of examinations tax filings by tax authorities expiration of statutes of limitations.
 in 2014  we reduced accruals for uncertain tax positions related accrued interest on tax positions income tax expense decreased by $ 759 million.
 possible that certain tax contests could be resolved within next 12 months may result in decrease in effective tax rate.
 reconciliation of unrecognized tax benefits.
 as of december 31 , 2015 and 2014  accrued interest associated with tax positions was $ 510 million and $ 452 million  respectively.
 as of december 31 , 2015 and 2014 , $ 49 million and $ 44 million  respectively these amounts related to tax positions of nbcuniversal and nbcuniversal enterprise for which we been indemnified by ge.
 during 2015  irs completed examination of income tax returns for year 2013.
 various states examining our tax returns most periods relating to tax years 2000 and forward.
 tax years of state tax returns under examination vary by state.
 109 comcast 2015 annual report on form 10-k

( in millions )                                              | 2015       | 2014         | 2013
------------------------------------------------------------ | ---------- | ------------ | ------------
balance january 1                                            | $ 1171     | $ 1701       | $ 1573
additions based on tax positions related to the current year | 67         | 63           | 90
additions based on tax positions related to prior years      | 98         | 111          | 201
additions from acquired subsidiaries                         | 2014       | 2014         | 268
reductions for tax positions of prior years                  | -84 ( 84 ) | -220 ( 220 ) | -141 ( 141 )
reductions due to expiration of statutes of limitations      | -41 ( 41 ) | -448 ( 448 ) | -3 ( 3 )
settlements with tax authorities                             | -75 ( 75 ) | -36 ( 36 )   | -287 ( 287 )
balance december 31                                          | $ 1136     | $ 1171       | $ 1701


2009 levels returned portion assets to active service.
 end of 2010  continued to maintain in storage approximately 17% ( 17 % ) of multiple purpose locomotives 14% ( 14 % ) freight car inventory reflecting ability to leverage assets as volumes return to network.
 2022 fuel prices 2013 fuel prices increased throughout 2010 as economy improved.
 average diesel fuel price per gallon increased nearly 20% ( 20 % ) from january to december 2010  driven by higher crude oil barrel prices and conversion spreads.
 compared to 2009  diesel fuel price per gallon consumed increased 31% ( 31 % ) driving operating expenses up by $ 566 million ( excluding impact from year-over-year volume increases ).
 to partially offset effect higher fuel prices reduced consumption rate by 3% ( 3 % ) during year  saving approximately 27 million gallons of fuel.
 use of newer more fuel efficient locomotives ; increased use of distributed locomotive power ( distributing locomotives throughout train safer more efficient train operations ) fuel conservation programs efficient network operations asset utilization contributed to improvement.
 2022 free cash flow 2013 cash generated by operating activities ( adjusted for reclassification receivables securitization facility ) totaled $ 4. 5 billion  record free cash flow of $ 1. 4 billion in 2010.
 free cash flow defined as cash provided by operating activities ( adjusted for reclassification receivables securitization facility ) less cash used in investing activities and dividends paid.
 free cash flow not considered a financial measure under accounting principles accepted.
 sec regulation g and item 10 of sec regulation s-k.
 believe free cash flow important in evaluating financial performance measures ability to generate cash without additional external financings.
 free cash flow should be considered in addition to than substitute for cash provided by operating activities.
table reconciles cash by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions 2010 2009 2008.
 [a] effective january 1 , 2010  new accounting standard required us to account for receivables transferred under receivables securitization facility as secured borrowings in consolidated statements of financial position and as financing activities in consolidated statements of cash flows.
 receivables securitization facility included in free cash flow calculation to adjust cash by operating activities as though receivables securitization facility had been accounted for under new accounting standard for all periods presented.
 2011 outlook 2022 safety 2013 operating safe railroad benefits employees customers shareholders  public.
 continue using multi-faceted approach to safety  utilizing technology  risk assessment quality control training engaging employees.
 continue implementing total safety culture ( tsc ) throughout operations.
 tsc designed to establish  maintain reinforce promote safe practices among co-workers.
 process allows to identify and implement best practices for employee and operational safety.
 reducing grade crossing incidents is critical aspect of safety programs continue efforts to maintain and close crossings ; install video cameras on locomotives educate public and law enforcement agencies about crossing safety through our own programs ( including risk assessment strategies ) industry programs  engaging local communities.
 2022 transportation plan 2013 to build upon success recent years continue evaluating traffic flows and network logistic patterns  dynamic to identify additional opportunities to simplify operations remove network variability improve network efficiency and asset utilization.
 plan to adjust manpower and locomotive and rail car fleets to meet customer needs

millions                                                                                | 2010           | 2009           | 2008
---------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities                                                    | $ 4105         | $ 3204         | $ 4044
receivables securitization facility [a]                                                  | 400            | 184            | 16
cash provided by operating activitiesadjusted for the receivables securitizationfacility | 4505           | 3388           | 4060
cash used in investing activities                                                        | -2488 ( 2488 ) | -2145 ( 2145 ) | -2738 ( 2738 )
dividends paid                                                                           | -602 ( 602 )   | -544 ( 544 )   | -481 ( 481 )
free cash flow                                                                           | $ 1415         | $ 699          | $ 841


graph shows five-year comparison cumulative shareholder return company's common stock with cumulative total return s&p smallcap 600 index s&p 600 electrical equipment index published indices.
 comparison five-year cumulative total return from december 31 2002 to december 31 2007 assumes $ 100 invested with reinvestment dividends period indexed returns.
 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 smith ( a o ) corp s&p smallcap 600 index s&p 600 electrical equipment

company/index                | baseperiod 12/31/02 | baseperiod 12/31/03 | baseperiod 12/31/04 | baseperiod 12/31/05 | baseperiod 12/31/06 | 12/31/07
---------------------------- | ------------------- | ------------------- | ------------------- | ------------------- | ------------------- | --------
a o smith corp               | 100.00              | 132.23              | 115.36              | 138.20              | 150.26              | 142.72
s&p smallcap 600 index       | 100.00              | 138.79              | 170.22              | 183.30              | 211.01              | 210.39
s&p 600 electrical equipment | 100.00              | 126.12              | 152.18              | 169.07              | 228.83              | 253.33


impairment net unrealized losses on securities available for sale were as of december 31:.
 above net unrealized loss amounts at december 31 , 2009 and december 31 , 2008 excluded remaining net unrealized loss of $ 1. 01 billion  or $ 635 million after-tax , and $ 2. 27 billion , or $ 1. 39 billion after- tax  related to reclassifications of securities for sale to securities held to maturity.
 these after-tax amounts recorded in other comprehensive income.
 decline in remaining after-tax unrealized loss amounts related to transferred securities resulted from amortization and recognition of losses from other-than-temporary impairment on securities.
 conduct periodic reviews of individual securities to assess other-than-temporary impairment exists.
 other-than-temporary impairment identified impairment is broken into credit component and non-credit component.
 credit component recognized in our consolidated statement of income  and non-credit component recognized in other comprehensive income to management does not intend to sell security ( see note 3 of notes to consolidated financial statements under item 8 ).
 assessment of other-than-temporary impairment involves evaluation of economic and security- specific factors described in note 3.
 such factors based upon estimates  by management contemplate current market conditions and security-specific performance.
 market conditions worse than management expectations other-than-temporary impairment could increase in particular credit component recognized in consolidated statement of income.
 national housing prices  to national hpi declined to approximately 30% ( 30 % ) peak-to-current.
 management estimates national housing prices will continue to decline bottom during second half of 2010  consistent with peak-to-trough housing price decline of approximately 37% ( 37 % ).
indication of sensitivity of portfolio with significant assumptions underlying assessment of impairment , if increase default estimates to 110% ( 110 % ) of management 2019s current expectations with slowing of prepayment speeds to 90% ( 90 % ) of management 2019s current expectations , credit-related other-than-temporary impairment could increase by approximately $ 120 million to $ 125 million , impairment recorded in consolidated statement of income.
 excluding securities for other-than-temporary impairment recorded , management considers aggregate decline in fair value of remaining securities and resulting net unrealized losses to temporary not result of material changes in credit characteristics of securities.
 additional information about assessment of impairment provided in note 3 of notes to consolidated financial statements under item 8.

( in millions )               | 2009             | 2008
----------------------------- | ---------------- | ----------------
fair value                    | $ 72699          | $ 54163
amortized cost                | 74843            | 60786
net unrealized loss pre-tax   | $ -2144 ( 2144 ) | $ -6623 ( 6623 )
net unrealized loss after-tax | $ -1316 ( 1316 ) | $ -4057 ( 4057 )


polyplastics co.  ltd.
 leading supplier of engineered plastics in asia-pacific region venture between daicel chemical industries ltd. japan ( 55% ( 55 % ) ) ticona llc ( 45% ( 45 % ) ownership wholly-owned subsidiary of cna holdings llc ).
 polyplastics producer marketer of pom and lcp  principal production facilities in japan taiwan malaysia china.
 fortron industries llc.
 fortron leading global producer of polyphenylene sulfide ( "pps" ) sold under fortron ae brand used in automotive other applications especially requiring heat chemical resistance.
 fortron limited liability company members are ticona fortron inc.
 ( 50% ( 50 % ) ownership wholly-owned subsidiary of cna holdings llc ) kureha corporation ( 50% ( 50 % ) ).
 fortron's facility in wilmington north carolina.
 venture combines sales marketing distribution compounding manufacturing expertise of celanese with pps polymer technology expertise of kureha.
 china acetate strategic ventures.
 hold ownership interest in three separate acetate production ventures in china nantong cellulose fibers co.
 ltd.
 ( 31% ( 31 % ) ) kunming cellulose fibers co.
 ltd.
 30% ( 30 % ) ) zhuhai cellulose fibers co.
 ltd.
 ( 30% ( 30 % ) ).
 china national tobacco corporation  chinese state-owned tobacco entity controls remaining ownership interest in each ventures.
 chinese acetate ventures fund operations using operating cash flow pay dividend in second quarter of each fiscal year based on ventures' performance for preceding year.
in 2012 , 2011 2010  received cash dividends of $ 83 million , $ 78 million $ 71 million , respectively.
 during 2012  our venture's nantong facility completed expansion of acetate flake and acetate tow capacity  each by 30000 tons.
 made contributions of $ 29 million over three years related to capacity expansion nantong.
 similar expansions since ventures led to earnings growth increased dividends for company.
 according to euromonitor database services china estimated 42% ( 42 % ) share of world's 2011 cigarette consumption fastest growing area for cigarette consumption at estimated growth rate of 3. 5% ( 3. 5 % ) per year from 2011 through 2016.
 combined these ventures are leader in chinese domestic acetate production believe well positioned to supply chinese cigarette producers.
 our ownership interest in each china acetate ventures exceeds 20% ( 20 % )  account for investments using cost method of accounting cannot exercise significant influence over entities due to local government investment influence entities limitations on involvement in day-to-day operations present inability entities to provide timely financial information in accordance with generally accepted accounting principles in united states (.
 2022 other equity method investments infraservs.
 hold indirect ownership interests in several german infraserv groups own develop industrial parks provide on-site general administrative support to tenants.
 ownership interest in equity investments in infraserv ventures are as follows : as of december 31 , 2012 ( in percentages ).
 raw materials and energy purchase variety of raw materials and energy from sources in many countries for in production processes.
 policy of maintaining when available multiple sources of supply for materials.
, some our individual plants may have single sources of supply for raw materials , as carbon monoxide  steam acetaldehyde.
 although we able to obtain sufficient supplies of raw materials , can no assurance that unforeseen developments will not affect our raw material supply.
 even if we multiple sources of supply for raw material , no assurance that these sources can make up for loss of a major supplier.
 possible profitability will be adversely affected if we required to qualify additional sources of supply to our specifications in loss of a sole supplier.
 in, price of raw materials varies  often substantially , from year to year.

| as of december 31 2012 ( in percentages )
--------------------------------- | -----------------------------------------
infraserv gmbh & co . gendorf kg  | 39
infraserv gmbh & co . knapsack kg | 27
infraserv gmbh & co . hoechst kg  | 32


summary fin 48 changes during fiscal 2008 , aggregate changes in total gross amount unrecognized tax benefits summarized:.
 gross liability for unrecognized tax benefits at november 28 , 2008 of $ 139. 5 million is exclusive of interest and penalties.
 if total fin 48 gross liability for unrecognized tax benefits at november 28 , 2008 recognized in future following amounts net of estimated $ 12. 9 million benefit related to deducting such payments on future tax returns would result : $ 57. 7 million of unrecognized tax benefits decrease effective tax rate and $ 68. 9 million would decrease goodwill.
 as of november 28, 2008 combined accrued interest and penalties related to tax positions taken on tax returns included in non-current income taxes payable was approximately $ 15. 3 million.
 file income tax returns in u.
 federal basis and many u.
 state and foreign jurisdictions.
 subject to continual examination of income tax returns by irs and other domestic and foreign tax authorities.
 major tax jurisdictions are u. s. , ireland and california.
. earliest fiscal years open for examination are 2001 , 2002 and 2005 .
 in august 2008 .
 income tax examination covering fiscal years 2001 through 2004 completed.
 accrued tax and interest related to these years was $ 100. 0 million previously reported in long-term income taxes payable.
 conjunction with resolution requested received approval from irs to repatriate certain foreign earnings in tax-free manner resulted in reduction of long-term deferred income tax liability of $ 57. 8 million.
 these liabilities on balance sheet decreased by $ 157. 8 million.
 in august 2008  paid $ 80.0 million in conjunction with resolution , credited additional paid-in-capital for $ 41. 3 million due to use of certain tax attributes related to stock option deductions , including portion of deferred tax assets not recorded in financial statements to sfas 123r made other individually immaterial adjustments to tax balances totaling $ 15. 8 million.
 net income statement tax benefit in third quarter of fiscal 2008 of $ 20. 7 million resulted.
 accounting treatment related to unrecognized tax benefits from acquired companies , including macromedia , will change when sfas 141r becomes effective.
 sfas 141r will be effective in first quarter of fiscal year 2010.
 any changes to recognition or measurement of unrecognized tax benefits will be recorded through income tax expense , currently accounting treatment require adjustment to be recognized through purchase price as adjustment to goodwill.
 timing of resolution of income tax examinations uncertain amounts ultimately paid , if any, upon resolution of issues raised by taxing authorities may differ from amounts accrued for each year.
 possible that some issues in irs and other examinations could be resolved within next 12 months , based current facts and circumstances  cannot estimate timing of resolution or range of potential changes to unrecognized tax benefits recorded as part of financial statements.
 do not expect material settlements in fiscal 2009 but inherently uncertain to determine.

beginning balance as of december 1 2007                                      | $ 201808
---------------------------------------------------------------------------- | ----------------
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 14009
gross increases in unrecognized tax benefits 2013 current year tax positions | 11350
settlements with taxing authorities                                          | -81213 ( 81213 )
lapse of statute of limitations                                              | -3512 ( 3512 )
foreign exchange gains and losses                                            | -2893 ( 2893 )
ending balance as of november 28 2008                                        | $ 139549


stock-based compensation 2013 several stock-based compensation plans employees non-employee directors receive stock options nonvested retention shares nonvested stock units.
 refer to nonvested shares stock units collectively as 201cretention awards.
 issue treasury shares cover option exercises stock unit vestings new shares issued when retention shares vest.
 adopted fasb statement no.
 123 ( r )  share-based payment ( fas 123 ( r ) ) on january 1 , 2006.
 fas 123 ( r ) requires to measure recognize compensation expense for all stock-based awards to employees directors including stock options.
 compensation expense based on calculated fair value of awards measured at grant date expensed ratably over service period of awards ( generally vesting period ).
 fair value of retention awards is stock price on date of grant fair value of stock options determined black-scholes option pricing model.
 elected use modified prospective transition method permitted by fas 123 ( r ) did not restate financial results for prior periods.
 not adjustment for cumulative effect of estimated forfeitures impact not material.
 result adoption of fas 123 ( r )  recognized expense for stock options in 2006 in addition to retention awards expensed prior to 2006.
 stock-based compensation expense for year ended december 31 , 2006 was $ 22 million  after tax or $ 0. 08 per basic and diluted share.
 includes $ 9 million for stock options $ 13 million for retention awards for 2006.
 before taxes stock-based compensation expense included $ 14 million for stock options $ 21 million for retention awards for 2006.
 recorded $ 29 million of excess tax benefits as inflow of financing activities in consolidated statement of cash flows for year ended december 31 , 2006.
prior adoption of fas 123 ( r )  applied recognition measurement principles of accounting principles board opinion no.
 25  accounting for stock issued to employees related interpretations.
 no stock- based employee compensation expense related to stock option grants reflected in net income all options granted under plans had grant price equal to market value of common stock on date of grant.
 stock-based compensation expense related to retention shares stock units other incentive plans reflected in net income.
 table details effect on net income earnings per share compensation expense for stock-based awards including stock options recorded in years ended december 31, 2005 2004 based on fair value method under fasb statement no.
 123 , accounting for stock-based compensation.
 pro forma stock-based compensation expense year ended december 31 , millions of dollars  except per share amounts 2005 2004.
 stock options for executives granted in 2003 and 2002 included reload feature.
 reload feature allowed executives to exercise options using shares of union pacific corporation common stock owned obtain new grant of options in amount shares used for exercise plus shares withheld for tax purposes.
 reload feature option grants only exercised if

pro forma stock-based compensation expense                                                                                | pro forma stock-based compensation expense |
------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | ----------
millions of dollars except per share amounts                                                                              | 2005                                       | 2004
net income as reported                                                                                | $ 1026                                     | $ 604
stock-based employee compensation expense reported in net income net of tax                                               | 13                                         | 13
total stock-based employee compensation expense determined under fair value 2013based method for allawards net of tax [a] | -50 ( 50 )                                 | -35 ( 35 )
pro forma net income                                                                                | $ 989                                      | $ 582
earnings per share 2013 basic as reported                                                                                | $ 3.89                                     | $ 2.33
earnings per share 2013 basic pro forma                                                                                | $ 3.75                                     | $ 2.25
earnings per share 2013 diluted as reported                                                                               | $ 3.85                                     | $ 2.30
earnings per share 2013 diluted pro forma                                                                                | $ 3.71                                     | $ 2.22


part ii issued in initial aggregate principal amount of $ 500 million at 2. 25% ( 2. 25 % ) fixed , annual interest rate mature on may 1 , 2023.
 2043 senior notes issued initial aggregate principal amount of $ 500 million at 3. 625% ( 3. 625 % ) fixed , annual interest rate mature on may 1 , 2043.
 interest on senior notes payable semi-annually on may 1 and november 1 of each year.
 issuance resulted in gross proceeds before expenses of $ 998 million.
 on november 1, 2011  entered committed credit facility agreement with syndicate of banks provides for up to $ 1 billion of borrowings option to increase borrowings to $ 1. 5 billion with lender approval.
 facility matures november 1 , 2017.
 for periods ended may 31 , 2015 and 2014  no amounts outstanding under committed credit facility.
 currently have long-term debt ratings of aa- and a1 from standard and poor 2019s corporation and moody 2019s investor services .
 if long- term debt ratings to decline , facility fee and interest rate under committed credit facility would increase.
 conversely  if long-term debt rating improve , facility fee and interest rate would decrease.
 changes in long-term debt rating not trigger acceleration of maturity of then-outstanding borrowings or future borrowings under committed credit facility.
 under committed revolving credit facility agreed to various covenants.
 covenants include limits on disposal of fixed assets , amount of debt secured by liens may incur minimum capitalization ratio.
 event any borrowings outstanding under facility failed to meet covenant unable to obtain waiver from majority of banks in syndicate borrowings become immediately due and payable.
as of may 31 , 2015  in full compliance with covenants unlikely will fail to meet covenants in foreseeable future.
 liquidity provided by $ 1 billion commercial paper program.
 during year ended may 31 , 2015  did not issue commercial paper as of may 31 , 2015 no outstanding borrowings under this program.
 may issue commercial paper or other debt securities during fiscal 2016 depending on general corporate needs.
 have short-term debt ratings of a1+ and p1 from standard and poor 2019s corporation and moody 2019s investor services .
 as of may 31 , 2015 had cash , cash equivalents short-term investments totaling $ 5. 9 billion  of $ 4. 2 billion held by foreign subsidiaries.
 included in cash equivalents may 31 2015 was $ 968 million of cash collateral received from counterparties result of hedging activity.
 cash equivalents and short-term investments consist primarily of deposits at major banks, money market funds  commercial paper  corporate notes u.
 treasury obligations.
 government sponsored enterprise obligations other investment grade fixed income securities.
 fixed income investments exposed to credit and interest rate risk.
 all investments are investment grade to minimize credit risk.
 individual securities have varying durations as of may 31 , 2015 weighted average remaining duration of short-term investments and cash equivalents portfolio was 79 days.
 not experienced difficulty accessing credit markets or incurred higher interest costs.
 future volatility in capital markets may increase costs with issuing commercial paper or other debt instruments or affect ability to access markets.
believe existing cash , cash equivalents short-term investments cash generated by operations  access to external sources of funds described above, will sufficient to meet domestic and foreign capital needs foreseeable future.
 utilize variety tax planning financing strategies to manage worldwide cash deploy funds to locations where needed.
 routinely repatriate portion of foreign earnings for which u. s.
 taxes previously been provided.
 also indefinitely reinvest significant portion of foreign earnings  current plans do not demonstrate need to repatriate these earnings.
 require additional capital in united states, may elect to repatriate indefinitely reinvested foreign funds or raise capital united states through debt.
 if to repatriate indefinitely reinvested foreign funds , required to accrue pay additional u. s.
 taxes less applicable foreign tax credits.
 if elect raise capital in united states through debt , incur additional interest expense.
 off-balance sheet arrangements in connection with various contracts agreements  routinely provide indemnification relating to enforceability of intellectual property rights coverage for legal issues other items where acting as guarantor.
 currently have several such agreements in place.
 based on historical experience estimated probability of future loss determined fair value of such indemnification not material to financial position or results of operations.
 contractual obligations significant long-term contractual obligations as of may 31 , 2015 significant endorsement contracts  including related marketing commitments , entered into through date of this report are as follows:.
 ( 1 ) cash payments due for long-term debt include estimated interest payments.
 estimates of interest payments based on outstanding principal amounts , applicable fixed interest rates or currently effective interest rates as of may 31 , 2015 ( if variable ) , timing of scheduled payments term of debt obligations.
( 2 ) amounts listed for endorsement contracts represent approximate base compensation minimum guaranteed royalty fees we obligated to pay athlete , sport team league endorsers of our products.
 actual payments under some contracts may be higher than amounts listed as these contracts provide for bonuses paid to endorsers based upon athletic achievements/or royalties on product sales in future periods.
 actual payments under some contracts may also be lower as contracts include provisions for reduced payments if athletic performance declines in future periods.
 in addition to cash payments , we obligated to furnish endorsers with nike product for use.
 not possible to determine how much we spend on this product on annual basis contracts do not stipulate specific amount of cash spent on product.
 amount of product provided to endorsers will depend on many factors  including general playing conditions  number of sporting events our own decisions regarding product and marketing initiatives.
 costs to design , develop source purchase products furnished to endorsers are incurred over period time not necessarily tracked separately from similar costs for products sold to customers.

description of commitment ( in millions ) | description of commitment 2016 | description of commitment 2017 | description of commitment 2018 | description of commitment 2019 | description of commitment 2020 | description of commitment thereafter | total
----------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------------ | -------
operating leases                          | $ 447                          | $ 423                          | $ 371                          | $ 311                          | $ 268                          | $ 1154                               | $ 2974
capital leases                            | 2                              | 2                              | 1                              | 2014                           | 2014                           | 2014                                 | 5
long-term debt ( 1 )                      | 142                            | 77                             | 55                             | 36                             | 36                             | 1451                                 | 1797
endorsement contracts ( 2 )               | 1009                           | 919                            | 882                            | 706                            | 533                            | 2143                                 | 6192
product purchase obligations ( 3 )        | 3735                           | 2014                           | 2014                           | 2014                           | 2014                           | 2014                                 | 3735
other ( 4 )                               | 343                            | 152                            | 75                             | 72                             | 36                             | 92                                   | 770
total                                     | $ 5678                         | $ 1573                         | $ 1384                         | $ 1125                         | $ 873                          | $ 4840                               | $ 15473


part i berths end of 2011.
 approximately 10 ships estimated 34000 berths expected placed in service in north american cruise market between 2012 and 2016.
 europe europe , cruising represents smaller but growing sector of vacation industry.
 experienced compound annual growth rate in cruise guests approximately 9. 6% ( 9. 6 % ) from 2007 to 2011 believe market has significant continued growth poten- tial.
 estimate europe served by 104 ships approximately 100000 berths beginning of 2007 121 ships approximately 155000 berths end of 2011.
 approximately 10 ships estimated 28000 berths expected in service in european cruise market between 2012 and 2016.
 table details growth in global , north american european cruise markets terms cruise guests estimated weighted-average berths over past five years : global cruise guests 1 ) weighted-average supply of berths marketed globally ( 1 ) north american cruise guests ( 2 ) weighted-average supply of berths marketed in north america ( 1 ) european cruise guests ( 3 ) weighted-average supply of berths marketed in europe ( 1 ).
 source : estimates of number of global cruise guests weighted-average supply of berths marketed globally north america europe based on combination of data from various publicly available cruise industry trade information sources including seatrade insider cruise line international association.
 our estimates incorporate our own statistical analysis utilizing same publicly available cruise industry data base.
 2 ) source : cruise line international association based on cruise guests carried for two consecutive nights for years 2007 through 2010.
 year 2011 amounts represent our estimates see number 1 above ).
 3 ) source : european cruise council for years 2007 through 2010.
 year 2011 amounts represent our estimates see number 1 above ).
other markets in addition to expected industry growth in north america and europe discussed , expect asia/pacific region to demonstrate higher growth rate in near term , although continue to represent relatively small sector compared to north america europe.
 we compete with number of cruise lines ; principal competitors are carnival corporation & plc , owns  , aida cruises , carnival cruise lines , costa cruises , cunard line , holland america line , iberocruceros , p&o cruises princess cruises ; disney cruise line ; msc cruises ; norwegian cruise line oceania cruises.
 cruise lines compete with other vacation alternatives land-based resort hotels sightseeing destinations for consum- ers 2019 leisure time.
 demand for activities influ- enced by political and general economic conditions.
 companies within vacation market dependent on consumer discretionary spending.
 operating strategies principal operating strategies are to : employees protect environment in vessels organization operate  better serve global guest base grow business  enhance revenues expand diversify guest mix through interna- tional guest sourcing  ensure adequate cash and liquidity  goal of maximizing return on invested capital and long-term shareholder value , brands throughout world  revitalization of existing ships transfer of key innovations across each brand  expanding fleet with new state-of-the-art cruise ships recently delivered on order  deploying them into markets and itineraries provide opportunities to optimize returns  continuing focus on existing key markets  support ongoing operations and initiatives  principal industry distribution channel  enhancing consumer outreach programs.

year | global cruiseguests ( 1 ) | weighted-averagesupplyofberthsmarketedglobally ( 1 ) | northamericancruiseguests ( 2 ) | weighted-average supply ofberths marketedin northamerica ( 1 ) | europeancruiseguests | weighted-averagesupply ofberthsmarketed ineurope ( 1 )
---- | ------------------------- | ---------------------------------------------------- | ------------------------------- | -------------------------------------------------------------- | -------------------- | ------------------------------------------------------
2007 | 16586000                  | 327000                                               | 10247000                        | 212000                                                         | 4080000              | 105000
2008 | 17184000                  | 347000                                               | 10093000                        | 219000                                                         | 4500000              | 120000
2009 | 17340000                  | 363000                                               | 10198000                        | 222000                                                         | 5000000              | 131000
2010 | 18800000                  | 391000                                               | 10781000                        | 232000                                                         | 5540000              | 143000
2011 | 20227000                  | 412000                                               | 11625000                        | 245000                                                         | 5894000              | 149000


adobe systems incorporated notes to consolidated financial statements continued ) note 15.
 commitments contingencies lease commitments we lease facilities and equipment under non-cancellable operating lease arrangements expire at various dates through 2028.
 one land lease expires in 2091.
 rent expense includes base contractual rent variable costs building expenses , utilities taxes  insurance equipment rental.
 rent expense and sublease income for leases for fiscal 2014 , 2013 2012 were as follows ( in thousands ) :.
 occupy three office buildings in san jose, california corporate headquarters located.
 reference office buildings as almaden tower east and west towers.
 in august 2014  exercised option to purchase east and west towers for total purchase price of $ 143. 2 million.
 upon purchase investment in lease receivable of $ 126. 8 million credited against total purchase price no longer required to maintain standby letter of credit as stipulated in east and west towers lease agreement.
 capitalized east and west towers as property and equipment on consolidated balance sheets at $ 144. 1 million , lesser of cost or fair value  represented total purchase price plus other direct costs associated with purchase.
 see note 6 for discussion of east and west towers purchase.
 lease agreement for almaden tower effective through march 2017.
 investors in lease receivable related to almaden tower lease in amount of $ 80. 4 million  recorded as investment in lease receivable on consolidated balance sheets.
 as of november 28 , 2014 carrying value of lease receivable related to almaden tower approximated fair value.
 under agreement for almaden tower option to purchase building at any time during lease term for $ 103. 6 million.
if we purchase building , investment in lease receivable may be credited against purchase price.
 residual value guarantee under almaden tower obligation is $ 89. 4 million.
 almaden tower lease subject to standard covenants including certain financial ratios reported to lessor quarterly.
 as of november 28 , 2014 , we in compliance with all covenants.
 in case of default , lessor may demand purchase building for amount equal to lease balance , or require remarket or relinquish building.
 if we choose to remarket or required to do so upon relinquishing building, we bound to arrange sale of building to unrelated party and required to pay lessor any shortfall between net remarketing proceeds and lease balance , up to residual value guarantee amount less investment in lease receivable.
 almaden tower lease qualifies for operating lease accounting treatment building and related obligation not included in consolidated balance sheets.
 see note 16 for discussion of capital lease obligation.
 unconditional purchase obligations purchase obligations consist of agreements to purchase goods and services entered into in ordinary course of business.

| 2014     | 2013     | 2012
---------------------- | -------- | -------- | --------
rent expense           | $ 111149 | $ 118976 | $ 105809
less : sublease income | 1412     | 3057     | 2330
net rent expense       | $ 109737 | $ 115919 | $ 103479


page 92 of 98 information required by item 10 under caption 201cdirector nominees continuing directors 201d and 201csection 16 ( a ) beneficial ownership reporting compliance , 201d of company 2019s proxy statement filed regulation 14a within 120 days after december 31 , 2006  incorporated herein by reference.
 item 11.
 executive compensation information required by item 11 under caption 201cexecutive compensation 201d in company 2019s proxy statement filed regulation 14a within 120 days after december 31, 2006  incorporated herein by reference.
 ball corporation 2000 deferred compensation company stock plan , ball corporation deposit share program ball corporation directors deposit share program created to encourage key executives participants to acquire larger equity ownership interest in company increase interest in company 2019s stock performance.
 non-employee directors participate in 2000 deferred compensation company stock plan.
 item 12.
 security ownership of certain beneficial owners management information required by item 12 under caption 201cvoting securities principal shareholders , 201d in company 2019s proxy statement filed regulation 14a within 120 days after december 31, 2006  incorporated herein by reference.
 securities authorized for issuance under equity compensation plans summarized below:.
 item 13.
 certain relationships related transactions information required by item 13 under caption 201cratification of appointment of independent registered public accounting firm , 201d in company 2019s proxy statement filed regulation 14a within 120 days after december 31 , 2006  incorporated herein by reference.
 item 14.
 principal accountant fees services information required by item 14 under caption 201ccertain committees of board , 201d in company 2019s proxy statement filed regulation 14a within 120 days after december 31 , 2006  incorporated herein by reference.

plan category                                              | equity compensation plan information number of securities to be issued upon exercise of outstanding options warrants and rights ( a ) | equity compensation plan information weighted-average exercise price of outstanding options warrants and rights ( b ) | equity compensation plan information 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     | 4852978                                                                                | $ 26.69                                                                                | 5941210
equity compensation plans not approved by security holders | 2013                                                                                | 2013                                                                                | 2013
total                                                      | 4852978                                                                                | $ 26.69                                                                                | 5941210


stock performance graph performance graph not deemed 201cfiled 201d for section 18 of securities exchange act of 1934 , as amended ( 201cexchange act 201d ) or otherwise subject to liabilities under section not deemed incorporated by reference into any filing of tractor supply company under securities act of 1933 , amended , or exchange act.
 following graph compares cumulative total stockholder return on our common stock from december 29 , 2012 to december 30 , 2017 ( company 2019s fiscal year-end )  with cumulative total returns of s&p 500 index and s&p retail index over same period.
 comparison assumes $ 100 invested on december 29 , 2012 , in our common stock and in each foregoing indices and case assumes reinvestment of dividends.
 historical stock price performance not indicative of future performance.

| 12/29/2012 | 12/28/2013 | 12/27/2014 | 12/26/2015 | 12/31/2016 | 12/30/2017
---------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
tractor supply company | $ 100.00   | $ 174.14   | $ 181.29   | $ 201.04   | $ 179.94   | $ 180.52
s&p 500                | $ 100.00   | $ 134.11   | $ 155.24   | $ 156.43   | $ 173.74   | $ 211.67
s&p retail index       | $ 100.00   | $ 147.73   | $ 164.24   | $ 207.15   | $ 219.43   | $ 286.13


investments in ecommerce technology.
 increase in operating expenses percentage of net sales for fiscal 2017 partially offset by impact of store closures in fourth quarter of fiscal 2016.
 membership and other income flat for fiscal 2018 increased $ 1. 0 billion a0for fiscal 2017 compared to same period previous fiscal year.
 fiscal 2018 included $ 387 million gain from sale of suburbia $ 47 million gain from land sale higher recycling income from sustainability efforts higher membership income from increased plus member penetration at sam's club gains less than gains recognized in fiscal 2017.
 fiscal 2017 included $ 535 million gain from sale of yihaodian business $ 194 million gain from sale of shopping malls in chile.
 for fiscal 2018 loss on extinguishment of debt was a0$ 3. 1 billion  due to early extinguishment of long-term debt allowed to retire higher rate debt to reduce interest expense in future periods.
 effective income tax rate was 30. 4% ( 30. 4 % ) for fiscal 2018 30. 3% ( 30. 3 % ) for fiscal 2017 and 2016.
 consistent year-over-year effective income tax rate may fluctuate period to period result of factors including changes in assessment of tax contingencies valuation allowances changes in tax laws outcomes of administrative audits impact of discrete items mix of earnings among u.
 operations international operations.
 reconciliation from.
 statutory rate to effective income tax rates for fiscal 2018 , 2017 2016 presented in note 9 in "notes to consolidated financial statements" describes impact of enactment of tax cuts and jobs act of 2017 ( "tax act" ) to fiscal 2018 effective income tax rate.
 result of factors reported $ 10. 5 billion and $ 14. 3 billion of consolidated net income for fiscal 2018 and 2017 respectively represents decrease of $ 3. 8 billion and $ 0.8 billion for fiscal 2018 and 2017 compared to previous fiscal year.
 diluted net income per common share to walmart ( ) was $ 3. 28 and $ 4. 38 for fiscal 2018 and 2017.
 walmart u. s.
 segment.
 net sales for walmart u. s.
 segment increased $ 10. 6 billion or 3. 5% ( 3. 5 % ) and $ 9. 5 billion or 3. 2% ( 3. 2 % ) for fiscal 2018 and 2017 compared previous fiscal year.
 increases in net sales due to increases in comparable store sales of 2. 1% ( 2. 1 % ) and 1. 6% ( 1. 6 % ) for fiscal 2018 and 2017  year-over-year growth in retail square feet of 0. 7% ( 0. 7 % ) and 1. 4% ( 1. 4 % ) for fiscal 2018 and 2017.
 fiscal 2018 sales from ecommerce acquisitions contributed to year-over-year increase.
 gross profit rate decreased 24 basis points for fiscal 2018 increased 24 basis points for fiscal 2017 compared previous.
 fiscal 2018  decrease due to strategic price investments mix impact from ecommerce.
 offsetting negative factors fiscal 2018 positive impact of savings from procuring merchandise.
 fiscal 2017 increase in gross profit rate due to improved margin in food and consumables impact savings procuring merchandise lower transportation expense from lower fuel costs.
 operating expenses as percentage of segment net sales flat for fiscal 2018 increased 101 basis points for fiscal 2017 compared previous fiscal year.
 fiscal 2018 and fiscal 2017 included charges related to discontinued real estate projects of $ 244 million and $ 249 million .
 fiscal 2017 increase driven by increase in wage expense due to investment in associate wage structure ; charge related to discontinued real estate projects ; investments in digital retail and technology.
increase in operating expenses percentage of segment net sales for fiscal 2017 partially offset by impact store closures in fiscal 2016.
 result of factors, segment operating income increased $ 124 million for fiscal 2018 decreased $ 1. 3 billion for fiscal 2017  respectively.

( amounts in millions except unit counts )    | fiscal years ended january 31 , 2018 | fiscal years ended january 31 , 2017 | fiscal years ended january 31 , 2016
--------------------------------------------- | ------------------------------------ | ------------------------------------ | ------------------------------------
net sales                                     | $ 318477                             | $ 307833                             | $ 298378
percentage change from comparable period      | 3.5% ( 3.5 % )                       | 3.2% ( 3.2 % )                       | 3.6% ( 3.6 % )
calendar comparable sales increase            | 2.1% ( 2.1 % )                       | 1.6% ( 1.6 % )                       | 1.0% ( 1.0 % )
operating income                              | $ 17869                              | $ 17745                              | $ 19087
operating income as a percentage of net sales | 5.6% ( 5.6 % )                       | 5.8% ( 5.8 % )                       | 6.4% ( 6.4 % )
unit counts at period end                     | 4761                                 | 4672                                 | 4574
retail square feet at period end              | 705                                  | 699                                  | 690


performance graph shows five-year cumulative total stockholder return on applied common stock period from october 28 , 2007 through october 28 , 2012.
 compared with cumulative total return of standard & poor 2019s 500 stock index and rdg semiconductor composite index over same period.
 comparison assumes $ 100 invested on october 28 , 2007 in applied common stock and in each foregoing indices assumes reinvestment of dividends  if.
 dollar amounts in graph rounded to nearest whole dollar.
 performance represents past performance not indication of future performance.
 comparison of 5 year cumulative total return* among applied materials , inc. , s&p 500 index rdg semiconductor composite index * $ 100 invested on 10/28/07 in stock or 10/31/07 in index  including reinvestment of dividends.
 indexes calculated on month-end basis.
 copyright a9 2012 s&p , division of mcgraw-hill companies inc.
 all rights reserved.
 dividends during fiscal 2012  applied 2019s board of directors declared three quarterly cash dividends $ 0. 09 per share each one quarterly cash dividend $ 0. 08 per share.
 fiscal 2011 , board directors declared three quarterly cash dividends $ 0. 08 per share each one quarterly cash dividend $ 0. 07 per share.
 during fiscal 2010  2019s board of directors declared three quarterly cash dividends $ 0. 07 per share each one quarterly cash dividend $ 0. 06.
 dividends declared during fiscal 2012 , 2011 and 2010 amounted to $ 438 million , $ 408 million and $ 361 million  respectively.
applied currently anticipates continue to pay cash dividends quarterly basis in future , declaration and amount of future cash dividends at discretion of board of directors depend on applied 2019s financial condition , results of operations , capital requirements , business conditions other factors , determination cash dividends in best interests of applied 2019s stockholders.
 10/28/07 10/26/08 10/25/09 10/31/10 10/30/11 10/28/12 applied materials , inc.
 s&p 500 rdg semiconductor composite

| 10/28/2007 | 10/26/2008 | 10/25/2009 | 10/31/2010 | 10/30/2011 | 10/28/2012
--------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
applied materials                 | 100.00     | 61.22      | 71.06      | 69.23      | 72.37      | 62.92
s&p 500 index                     | 100.00     | 63.90      | 70.17      | 81.76      | 88.37      | 101.81
rdg semiconductor composite index | 100.00     | 54.74      | 68.59      | 84.46      | 91.33      | 82.37


american tower corporation subsidiaries notes consolidated financial statements 2014 continued ) stock-based compensation 2014the company complies with provisions of sfas no.
 148 , 201caccounting for stock-based compensation 2014transition disclosure 2014an amendment of sfas no.
 123 , 201d provides optional transition guidance for companies adopt accounting provisions of sfas no.
 123.
 company continues use accounting principles board opinion no.
 25 ( apb no.
 25 ) , 201caccounting for stock issued to employees , 201d account for equity grants awards to employees officers directors adopted disclosure-only provisions of sfas no.
 148.
 accordance with apb no.
 25  company recognizes compensation expense based on excess quoted stock price at grant date award measurement date over amount employee must pay to acquire stock.
 company 2019s stock option plans described in note 13.
 december 2004  fasb issued sfas no.
 123r , 201cshare-based payment 201d ( sfas no.
 123r )  described.
 table illustrates effect on net loss net loss per share if company applied fair value recognition provisions of sfas no.
 123 as amended ) to stock-based compensation.
 estimated fair value of each option calculated using black-scholes option-pricing model ( in thousands  except per share amounts ).
 year ended december 31 , 2004 2003  company modified option awards to accelerate vesting recorded charges of $ 3. 0 million and $ 2. 3 million  corresponding increases to additional paid in capital in accompanying consolidated financial statements.
fair value financial instruments 2014the carrying values company 2019s financial instruments exception long-term obligations including current portion approximate related fair values as of december 31 , 2004 and 2003.
 as of december 31 , 2004  carrying amount fair value of long-term obligations including current portion were $ 3. 3 billion and $ 3. 6 billion  respectively.
 as of december 31 , 2003 carrying amount fair value-term obligations current portion were $ 3. 4 billion and $ 3. 6 billion .
 fair values based on quoted market prices for similar instruments.
 retirement plan 2014the company has 401 ( k ) plan covering all employees meet certain age employment requirements.
 plan company matching contribution for periods prior to june 30 , 2004 was 35% ( 35 % ) maximum 5% ( 5 % ) of participant 2019s contributions.
 effective july 1 , 2004 plan amended to increase company match to 50% ( 50 % ) maximum 6% ( 6 % ) of participant 2019s contributions.
 company contributed approximately $ 533000 , $ 825000 $ 979000 to plan for years ended december 31 , 2004 , 2003 2002 .
 recent accounting pronouncements 2014in december 2004 fasb issued sfas no.
 123r  revision of sfas no.
 123 , 201caccounting for stock-based compensation , 201d supersedes apb no.
 25  accounting for

| 2004                 | 2003                 | 2002
--------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | -------------------- | ----------------------
net loss as reported                                                                                | $ -247587 ( 247587 ) | $ -325321 ( 325321 ) | $ -1163540 ( 1163540 )
add : stock-based employee compensation expense associated with modifications net of related tax effect included in net loss asreported | 2297                 | 2077                 |
less : total stock-based employee compensation expense determined under fair value based method for all awards net of related taxeffect | -23906 ( 23906 )     | -31156 ( 31156 )     | -38126 ( 38126 )
pro-forma net loss                                                                                | $ -269196 ( 269196 ) | $ -354400 ( 354400 ) | $ -1201666 ( 1201666 )
basic and diluted net loss per share 2014as reported                                                                                | $ -1.10 ( 1.10 )     | $ -1.56 ( 1.56 )     | $ -5.95 ( 5.95 )
basic and diluted net loss per share pro-forma                                                                                | $ -1.20 ( 1.20 )     | $ -1.70 ( 1.70 )     | $ -6.15 ( 6.15 )


part a0ii item a05.
 market for registrant 2019s common equity , related stockholder matters issuer purchases of equity securities our common stock listed on new york stock exchange under symbol 201ctfx. 201d as of february 19 , 2019  473 holders of record of common stock.
 greater number holders are beneficial owners shares held by brokers other financial institutions for accounts beneficial owners.
 stock performance graph graph provides comparison of five year cumulative total stockholder returns of teleflex common stock , standard a0& poor 2019s ( s&p ) 500 stock index s&p 500 healthcare equipment & supply index.
 annual changes for five-year period graph based on assumption $ 100 invested in teleflex common stock each index on december a031 , 2013 all dividends reinvested.
 market performance.
 s&p 500 healthcare equipment & supply index 100 126 134 142 186 213

company / index                             | 2013 | 2014 | 2015 | 2016 | 2017 | 2018
------------------------------------------- | ---- | ---- | ---- | ---- | ---- | ----
teleflex incorporated                       | 100  | 124  | 143  | 177  | 275  | 288
s&p 500 index                               | 100  | 114  | 115  | 129  | 157  | 150
s&p 500 healthcare equipment & supply index | 100  | 126  | 134  | 142  | 186  | 213


note 8 2014 benefit plans company defined benefit pension plans covering certain employees in united states international locations.
 postretirement healthcare life insurance benefits provided to qualifying domestic retirees other postretirement benefit plans in international countries not material.
 measurement date for company 2019s employee benefit plans is september 30.
 effective january 1 , 2018  legacy.
 pension plan frozen to limit participation of employees hired or re-hired by company transfer employment to company on or after january 1 , net pension cost for years ended september 30 included components:.
 net pension cost included preceding table attributable to international plans $ 34 $ 43 $ 35 amounts for amortization of prior service credit amortization of loss represent reclassifications of prior service credits net actuarial losses recognized in accumulated other comprehensive income ( loss ) in prior periods.
 settlement losses recorded in 2018 and 2016 included lump sum benefit payments associated with company 2019s.
 supplemental pension plan.
 company recognizes pension settlements when payments from supplemental plan exceed sum of service and interest cost components of net periodic pension cost associated with plan for fiscal year.

( millions of dollars )                                                                      | pension plans 2018 | pension plans 2017 | pension plans 2016
-------------------------------------------------------------------------------------------- | ------------------ | ------------------ | ------------------
service cost                                                                                | $ 136              | $ 110              | $ 81
interest cost                                                                                | 90                 | 61                 | 72
expected return on plan assets                                                               | -154 ( 154 )       | -112 ( 112 )       | -109 ( 109 )
amortization of prior service credit                                                         | -13 ( 13 )         | -14 ( 14 )         | -15 ( 15 )
amortization of loss                                                                         | 78                 | 92                 | 77
settlements                                                                                | 2                  | 2014               | 7
net pension cost                                                                             | $ 137              | $ 138              | $ 113
net pension cost included in the preceding table that is attributable to international plans | $ 34               | $ 43               | $ 35


devon energy corporation subsidiaries notes consolidated financial statements 2013 continued ) proved undeveloped reserves table presents changes in devon 2019s total proved undeveloped reserves during 2012 in mmboe ).
 at december 31 , 2012 devon had 840 mmboe of proved undeveloped reserves.
 7 percent increase compared to 2011 28 percent of total proved reserves.
 drilling development activities increased devon 2019s proved undeveloped reserves 203 mmboe resulted in conversion of 90 mmboe 12 percent  of 2011 proved undeveloped reserves to developed reserves.
 costs incurred related to development conversion of devon 2019s proved undeveloped reserves were $ 1. 3 billion for 2012.
 revisions other than price decreased devon 2019s proved undeveloped reserves 16 mmboe due to evaluation of certain.
 onshore dry-gas areas not expect to develop next five years.
 largest revisions relate to dry-gas areas at carthage east texas barnett shale in north texas.
 significant amount of devon 2019s proved undeveloped reserves end of 2012 related to jackfish operations.
 at december 31 , 2012 2011 devon 2019s jackfish proved undeveloped reserves were 429 mmboe and 367 mmboe  respectively.
 development schedules for jackfish reserves controlled by need to keep processing plants at 35000 barrel daily facility capacity.
 processing plant capacity controlled by factors total steam processing capacity steam-oil ratios air quality discharge permits.
 reserves classified as proved undeveloped for more than five years.
 development schedule for reserves extends though year 2031.
 price revisions 2012 - reserves decreased 171 mmboe due to lower gas prices.
decrease  100 mmboe related barnett shale 25 mmboe rocky mountain area.
 2011 - reserves decreased 21 mmboe due to lower gas prices higher oil prices.
 higher oil prices increased devon 2019s canadian royalty burden reduced devon 2019s oil reserves.
 2010 - reserves increased 72 mmboe due to higher gas prices partially offset by effect higher oil prices.
 higher oil prices increased devon 2019s canadian royalty burden reduced devon 2019s oil reserves.
 72 mmboe price revisions 43 mmboe related barnett shale 22 mmboe rocky mountain area.
 revisions other than price total revisions other price for 2012 2011 related to devon 2019s evaluation certain dry gas regions proved undeveloped reserves discussion.
 total revisions other than price for 2010 related to devon 2019s drilling development in barnett shale.

| u.s .      | canada     | total
-------------------------------------------------- | ---------- | ---------- | ----------
proved undeveloped reserves as of december 31 2011 | 403        | 379        | 782
extensions and discoveries                         | 134        | 68         | 202
revisions due to prices                            | -47 ( 47 ) | 9          | -38 ( 38 )
revisions other than price                         | -10 ( 10 ) | -6 ( 6 )   | -16 ( 16 )
conversion to proved developed reserves            | -73 ( 73 ) | -17 ( 17 ) | -90 ( 90 )
proved undeveloped reserves as of december 31 2012 | 407        | 433        | 840


concentration of credit risk represents accounting loss recognized at reporting date if counterparties failed to perform as contracted.
 company believes likelihood of incurring material losses due to concentration credit risk is remote.
 principal financial instruments subject to credit risk are : cash and cash equivalents - company maintains cash deposits with major banks may exceed insured limits.
 possibility of loss related to financial condition of major banks deemed minimal.
 company 2019s investment policy limits exposure to concentrations credit risk and changes in market conditions.
 accounts receivable - large number of customers in diverse industries geographies practice establishing reasonable credit lines limits credit risk.
 based on historical trends experiences allowance for doubtful accounts adequate to cover potential credit risk losses.
 foreign currency and interest rate contracts and derivatives - exposure to credit risk limited by internal policies active monitoring of counterparty risks.
 company uses diversified group of major international banks and financial institutions as counterparties.
 company does not anticipate nonperformance by these counterparties.
 cash and cash equivalents cash equivalents include highly-liquid investments with maturity of three months or less when purchased.
 accounts receivable and allowance for doubtful accounts accounts receivable are carried at face amounts less allowance for doubtful accounts.
 recorded at invoiced amount generally do not bear interest.
 company estimates balance of allowance for doubtful accounts by analyzing accounts receivable balances by age applying historical write-off and collection trend rates.
 estimates include separately providing for customer balances based on specific circumstances and credit conditions when probable balance uncollectible.
 account balances are charged off against allowance when determined receivable will not be recovered.
company 2019s allowance for doubtful accounts balance includes allowance for expected return of products shipped and credits related to pricing or quantities shipped of $ 15 million as of december 31 , 2015 and 2014 $ 14 million december 31 , 2013.
 returns and credit activity recorded directly to sales.
 table summarizes activity in allowance for doubtful accounts:.
 other amounts effects of changes in currency translations impact of allowance for returns and credits.
 inventory valuations valued at lower of cost or market.
 certain.
 inventory costs determined on last-in , first-out ( lifo ) basis.
 lifo inventories represented 39% ( 39 % ) and 37% ( 37 % ) of consolidated inventories as of december 31, 2015 and 2014 .
 lifo inventories include legacy.
 inventory acquired at fair value as of merger.
 all other inventory costs determined using average cost or first-in , first-out ( fifo ) methods.
 inventory values at fifo  shown in note 5 during fourth quarter of 2015 company improved estimates related to inventory reserves and product costing resulting in net pre-tax charge of approximately $ 6 million.
 actions resulted in charge of $ 20. 6 million related to inventory reserve calculations partially offset by gain of $ 14. 5 million related to capitalization of certain cost components into inventory.
 items reflected in note 3.

( millions )      | 2015       | 2014       | 2013
----------------- | ---------- | ---------- | ----------
beginning balance | $ 77       | $ 81       | $ 73
bad debt expense  | 26         | 23         | 28
write-offs        | -22 ( 22 ) | -20 ( 20 ) | -21 ( 21 )
other ( a )       | -6 ( 6 )   | -7 ( 7 )   | 1
ending balance    | $ 75       | $ 77       | $ 81


part i item 1 entergy corporation , utility operating companies  system energy entergy wholesale commodities during 2010 entergy integrated non-utility nuclear and non-nuclear wholesale assets businesses into new organization entergy wholesale commodities.
 entergy wholesale commodities includes ownership operation of six nuclear power plants  five located in northeast united states sixth in michigan  primarily focused on selling electric power plants to wholesale customers.
 entergy wholesale commodities 2019 revenues primarily derived from sales of energy and generation capacity from these plants.
 entergy also provides operations management services including decommissioning services  to nuclear power plants owned by other utilities in united states.
 entergy also includes ownership of participation in joint ventures own non-nuclear power plants sale to wholesale customers of electric power by these plants.
 property nuclear generating stations entergy includes ownership of following nuclear power plants : power plant market service acquired location capacity- reactor type license expiration.
 entergy includes ownership of two non-operating nuclear facilities  big rock point in michigan and indian point 1 in new york acquired when entergy purchased palisades and indian point 2 nuclear plants.
 facilities in various stages of decommissioning process.
 nrc operating license for vermont yankee to expire in march 2012.
 in march 2011 nrc renewed vermont yankee 2019s operating license for additional 20 years license now expires in 2032.
 for additional discussion regarding continued operation of vermont yankee plant , see 201cimpairment of long-lived assets 201d in note 1 to financial statements.
 operating licenses for pilgrim , indian point 2  indian point 3 expire between 2012 and 2015.
under federal law , nuclear power plants may continue to operate beyond license expiration dates renewal applications pending nrc approval.
 various parties expressed opposition to renewal of licenses.
 respect pilgrim license renewal , atomic safety and licensing board ( aslb ) of nrc  after order denying new hearing request, terminated proceeding on pilgrim 2019s license renewal application.
 aslb process concluded proceeding , including appeals of certain aslb decisions now before nrc.
 in april 2007 , entergy submitted application to nrc to renew operating licenses for indian point 2 and 3 for additional 20 years.
 aslb admitted 21 contentions raised by state of new york or other parties combined into 16 discrete issues.
 two issues resolved , leaving 14 issues currently subject to aslb hearings.
 in july 2011  aslb granted state of new york 2019s motion for summary disposition of admitted contention challenging adequacy of section of indian point 2019s environmental analysis in fseis ( discussed ).
 section provided cost estimates for severe accident mitigation alternatives ( samas )  hardware and procedural changes could be

power plant    | market | inserviceyear | acquired    | location       | capacity-reactor type       | licenseexpirationdate
-------------- | ------ | ------------- | ----------- | -------------- | --------------------------- | ---------------------
pilgrim        | is0-ne | 1972          | july 1999   | plymouth ma    | 688 mw - boiling water      | 2012
fitzpatrick    | nyiso  | 1975          | nov . 2000  | oswego ny      | 838 mw - boiling water      | 2034
indian point 3 | nyiso  | 1976          | nov . 2000  | buchanan ny    | 1041 mw - pressurized water | 2015
indian point 2 | nyiso  | 1974          | sept . 2001 | buchanan ny    | 1028 mw - pressurized water | 2013
vermont yankee | is0-ne | 1972          | july 2002   | vernon vt      | 605 mw - boiling water      | 2032
palisades      | miso   | 1971          | apr . 2007  | south haven mi | 811 mw - pressurized water  | 2031


5.
 stock based compensation overview maa accounts for stock based employee compensation plans in accordance with accounting standards governing stock based compensation.
 standards require entity to measure cost of employee services received in exchange for award of equity instrument based on award's fair value on grant date recognize cost over period employee required to provide service in exchange for award  generally vesting period.
 liability awards issued remeasured at each reporting period.
 maa 2019s stock compensation plans consist of incentives to attract retain independent directors executive officers key employees.
 incentives granted under second amended restated 2013 stock incentive plan , stock plan  approved at 2018 annual meeting of maa shareholders.
 stock plan allows for grant of restricted stock and stock options up to 2000000 shares.
 maa believes awards align interests of employees with shareholders.
 compensation expense recognized for service based restricted stock awards using straight-line method over vesting period shares regardless of cliff or ratable vesting distinctions.
 compensation expense for market and performance based restricted stock awards recognized using accelerated amortization method with each vesting tranche valued as separate award  separate vesting date  consistent with estimated value of award at each period end.
 compensation expense adjusted for actual forfeitures for all awards in period award forfeited.
 compensation expense for stock options recognized on straight-line basis over requisite service period.
 maa presents stock compensation expense in consolidated statements of operations in "general and administrative expenses".
 total compensation expense under stock plan was $ 12. 9 million , $ 10. 8 million and $ 12. 2 million for years ended december 31 , 2018 , 2017 2016 , respectively.
 total compensation expense capitalized was $ 0. 5 million , $ 0. 2 million and $ 0.7 million for years ended december 31 , 2018 , 2017 2016 , respectively.
 as of december 31 , 2018  total unrecognized compensation expense was $ 13. 5 million.
 cost expected to be recognized over remaining weighted average period of 1. 1 years.
 total cash paid for settlement of plan shares totaled $ 2. 9 million , $ 4. 8 million and $ 2. 0 million for years ended december 31 , 2018 , 2017 2016  respectively.
 information concerning grants under stock plan provided below.
 restricted stock stock earned based on service condition , performance condition  market condition  or combination thereof generally vests over period from 1 year to 5 years.
 service based awards earned when employee remains employed over requisite service period valued on grant date based upon market price of maa common stock on date of grant.
 market based awards earned when maa reaches specified stock price or specified return stock price ( price appreciation plus dividends ) valued on grant date using monte carlo simulation.
 performance based awards earned when maa reaches certain operational goals funds from operations targets valued based upon market price of maa common stock on date of grant probability of reaching stated targets.
 maa remeasures fair value of performance based awards each balance sheet date with adjustments cumulative basis until award settled and final compensation known.
 weighted average grant date fair value per share of restricted stock awards granted during years ended december 31 , 2018 , 2017 2016  was $ 71. 85 , $ 84. 53 and $ 73. 20 , respectively.
 summary of key assumptions used in valuation calculations for market based awards granted during years ended december 31 , 2018 , 2017 2016.
 risk free rate based on zero coupon risk-free rate.
minimum risk free rate based on period of 0. 25 years for years ended december 31 , 2018 , 2017 2016.
 maximum risk free rate based on period of 3 years for years ended december 31 , 2018 , 2017 2016.
 dividend yield based on closing stock price of maa stock

| 2018                                    | 2017                                    | 2016
------------------------ | --------------------------------------- | --------------------------------------- | ---------------------------------------
risk free rate           | 1.61% ( 1.61 % ) - 2.14% ( 2.14 % )     | 0.65% ( 0.65 % ) - 1.57% ( 1.57 % )     | 0.49% ( 0.49 % ) - 1.27% ( 1.27 % )
dividend yield           | 3.884% ( 3.884 % )                      | 3.573% ( 3.573 % )                      | 3.634% ( 3.634 % )
volatility               | 15.05% ( 15.05 % ) - 17.18% ( 17.18 % ) | 20.43% ( 20.43 % ) - 21.85% ( 21.85 % ) | 18.41% ( 18.41 % ) - 19.45% ( 19.45 % )
requisite service period | 3 years                                 | 3 years                                 | 3 years


entergy corporation subsidiaries management's financial discussion analysis decrease in interest income in 2002 due to fffd interest recognized 2001 on grand gulf 1's decommissioning trust funds from final order addressing system energy's rate proceeding ; fffd interest recognized 2001 at entergy mississippi entergy new orleans on deferred system energy costs not recovered through rates ; fffd lower interest earned on declining deferred fuel balances.
 decrease in interest charges in 2002 due to : fffd decrease of $ 31. 9 million in interest on long-term debt due to retirement of long-term debt late 2001 early 2002 ; decrease of $ 76. 0 million in other interest expense due to interest recorded on system energy's reserve for rate refund in 2001.
 refund made in december 2001.
 2001 compared to 2000 results for year ended december 31 , 2001 for u. s.
 utility affected by increase in interest charges of $ 61. 5 million due to fffd final ferc order addressing 1995 system energy rate filing ; fffd debt issued at entergy arkansas july 2001  entergy gulf states june 2000 august 2001 entergy mississippi january 2001 entergy new orleans july 2000 february 2001 ; fffd borrowings under credit facilities during 2001  at entergy arkansas.
 non-utility nuclear increase in earnings in 2002 for non-utility nuclear from $ 128 million to $ 201 million due to operation of indian point 2 vermont yankee , purchased in september 2001 july 2002.
 increase in earnings in 2001 for non-utility nuclear from $ 49 million to $ 128 million due to operation of fitzpatrick indian point 3 full year  each purchased in november 2000  operation indian point 2  purchased in september 2001.
 key performance measures for non-utility nuclear:.
 2002 compared to 2001 fluctuations in results operations non-utility nuclear 2002 caused by acquisitions of indian point 2 vermont yankee : fffd operating revenues increased $ 411. 0 million to $ 1. 2 billion ; fffd other operation maintenance expenses increased $ 201. 8 million to $ 596. 3 million ; depreciation and amortization expenses increased $ 25. 1 million to $ 42. 8 million fuel expenses increased $ 29. 4 million to $ 105. 2 million ; nuclear refueling outage expenses increased $ 23. 9 million to $ 46. 8 million due to a

| 2002         | 2001         | 2000
---------------------------------- | ------------ | ------------ | ------------
net mw in operation at december 31 | 3955         | 3445         | 2475
generation in gwh for the year     | 29953        | 22614        | 7171
capacity factor for the year       | 93% ( 93 % ) | 93% ( 93 % ) | 94% ( 94 % )


6.
 debt summary of outstanding debt ( in millions ) :.
 revolving credit facilities as of december 31 , 2015 aon plc had two committed credit facilities outstanding : $ 400 million.
 credit facility expiring march 2017 ( "2017 facility" ) and $ 900 million multi-currency.
 credit facility expiring february 2020 ( "2020 facility" ).
 2020 facility entered february 2 , 2015 replaced previous 20ac650 million european credit facility.
 effective february 2 , 2016 2020 facility terms extended for 1 year expire february 2021.
 facilities included customary representations  warranties covenants including financial covenants require aon plc to maintain specified ratios of adjusted consolidated ebitda to consolidated interest expense consolidated debt to adjusted consolidated ebitda tested quarterly.
 at december 31 , 2015 aon plc borrowings under 2017 facility or 2020 facility in compliance with financial covenants other covenants during twelve months ended december 31 , 2015.
 november 13 , 2015 aon plc issued $ 400 million of 2. 80% ( 2. 80 % ) senior notes due march 2021.
 used proceeds for general corporate purposes.
 september 30 , 2015 , $ 600 million of 3. 50% ( 3. 50 % ) senior notes issued by aon corporation matured repaid.
 on may 20 , 2015 aon plc issued $ 600 million of 4. 750% ( 4. 750 % ) senior notes due may 2045.
 company used proceeds for general corporate purposes.
 august 12 , 2014  aon plc issued $ 350 million of 3. 50% ( 3. 50 % ) senior notes due june 2024.
 3. 50%.50 % ) notes due 2024 constitute further issuance, consolidated form single series debt securities with , $ 250 million 3. 50%. 50 % ) notes due june 2024 issued by aon plc may 20, 2014 concurrently with aon plc's issuance $ 550 million 4. 60% ( 4. 60 % ) notes due june 2044.
 aon plc used proceeds from issuances for working capital general corporate purposes.

as of december 31                                             | 2015   | 2014
------------------------------------------------------------- | ------ | ------
5.00% ( 5.00 % ) senior notes due september 2020              | 599    | 599
4.75% ( 4.75 % ) senior notes due 2045                        | 598    | 2014
3.50% ( 3.50 % ) senior notes due june 2024                   | 597    | 597
4.60% ( 4.60 % ) senior notes due june 2044                   | 549    | 549
2.875% ( 2.875 % ) senior notes due may 2026 ( eur 500m )     | 545    | 605
8.205% ( 8.205 % ) junior subordinated notes due january 2027 | 521    | 521
3.125% ( 3.125 % ) senior notes due may 2016                  | 500    | 500
2.80% ( 2.80 % ) senior notes due 2021                        | 399    | 2014
4.00% ( 4.00 % ) senior notes due november 2023               | 349    | 349
6.25% ( 6.25 % ) senior notes due september 2040              | 298    | 298
4.76% ( 4.76 % ) senior notes due march 2018 ( cad 375m )     | 271    | 322
4.45% ( 4.45 % ) senior notes due may 2043                    | 249    | 248
4.25% ( 4.25 % ) senior notes due december 2042               | 196    | 196
3.50% ( 3.50 % ) senior notes due september 2015              | 2014   | 599
commercial paper                                              | 50     | 168
other                                                         | 16     | 31
total debt                                                    | 5737   | 5582
less short-term and current portion of long-term debt         | 562    | 783
total long-term debt                                          | $ 5175 | $ 4799


table of contents extinguishment costs incurred repayment of aircraft secured indebtedness including cash interest charges non-cash write offs of unamortized debt issuance costs.
 result 2013 refinancing activities early extinguishment of american 2019s 7. 50% ( 7. 50 % ) senior secured notes in 2014 recognized $ 100 million less interest expense in 2014 compared to 2013 period.
 other nonoperating expense  net 2014 consisted net foreign currency losses of $ 114 million early debt extinguishment charges of $ 56 million.
 other nonoperating expense  net 2013 net foreign currency losses of $ 56 million early debt extinguishment charges of $ 29 million.
 other nonoperating expense  net increased $ 64 million or 73. 1% ( 73. 1 % ) during 2014 due to special charges early debt extinguishment increase in foreign currency losses strengthening of u.
 dollar in foreign currency transactions principally latin american markets.
 recorded $ 43 million special charge for venezuelan foreign currency losses in 2014.
 see part ii , item 7a.
 quantitative qualitative disclosures about market risk for discussion of cash held in venezuelan bolivars.
 2014 nonoperating special items included $ 56 million related to early extinguishment of american 2019s 7. 50% ( 7. 50 % ) senior secured notes other indebtedness.
 reorganization items  net reorganization items refer to revenues expenses ( including professional fees ) realized gains losses provisions for losses realized incurred direct result of chapter 11 cases.
 table summarizes components included in reorganization items net on aag 2019s consolidated statement of operations for year ended december 31 , 2013 ( in millions ) :.
1 in exchange for employees 2019 contributions to reorganization  including agreeing reductions in pay and benefits, agreed plan to provide each employee group a deemed claim , used to provide distribution of portion of equity of reorganized entity to employees.
 each employee group received deemed claim amount based upon portion of value of cost savings provided by group through reductions to pay and benefits work rule changes.
 total value of deemed claim was approximately $ 1. 7 billion.
 2 amounts include allowed claims ( claims approved by bankruptcy court ) and estimated allowed claims relating to i rejection or modification of financings related to aircraft and ii entry of orders treated as unsecured claims with facility agreements supporting certain issuances of special facility revenue bonds.
 debtors recorded estimated claim associated with rejection or modification of financing or facility agreement when motion filed with bankruptcy court to reject or modify financing facility agreement debtors believed probable motion would be approved sufficient information to estimate claim.
 see note 2 to aag 2019s consolidated financial statements in part ii , item 8a for further information.
 3 pursuant to plan debtors agreed to allow certain post-petition unsecured claims on obligations.
 during year ended december 31 , 2013  recorded reorganization charges to adjust estimated allowed claim amounts recorded on rejected special facility revenue bonds of $ 180 million , allowed general unsecured claims related to 1990 and 1994 series of special facility revenue bonds that financed certain improvements at jfk , and rejected bonds that financed certain improvements at ord , included in table above.

| 2013
------------------------------------------------------------------------- | ------
labor-related deemed claim ( 1 )                                          | $ 1733
aircraft and facility financing renegotiations and rejections ( 2 ) ( 3 ) | 325
fair value of conversion discount ( 4 )                                   | 218
professional fees                                                         | 199
other                                                                     | 180
total reorganization items net                                            | $ 2655