aes corporation notes to consolidated financial statements december 31 , 2016 , 2015 , 2014 table summarizes company's redeemable stock of subsidiaries balances periods indicated ( in millions ) :.
 1 ) characteristics of quotas similar to common stock.
 colon 2014 year ended december 31 , 2016 , partner in colon increased ownership from 25% ( 25 % ) to 49. 9% ( 49. 9 % ) made capital contributions of $ 106 million.
 subsequent adjustments to allocate earnings and dividends to partner or measure investment at fair value classified as temporary equity each reporting period probable shares will become redeemable.
 ipl 2014 ipl had $ 60 million of cumulative preferred stock outstanding at december 31 , 2016 and 2015 , represented five series of preferred stock.
 total annual dividend requirements approximately $ 3 million at december 31 , 2016 and 2015.
 certain series of preferred stock redeemable solely at option of issuer at prices between $ 100 and $ 118 per share.
 holders of preferred stock entitled to elect majority of ipl's board of directors if ipl not paid dividends to preferred stockholders for four consecutive quarters.
 based stockholders' redemption of preferred shares not solely within control of issuer preferred stock considered temporary equity.
 dpl 2014 dpl had $ 18 million of cumulative preferred stock outstanding as of december 31 , 2015  represented three series of preferred stock issued by dp&l , wholly-owned subsidiary of dpl.
 dp&l preferred stock redeemable at dp&l's option as determined by board of directors at per-share redemption prices between $ 101 and $ 103 per share plus cumulative preferred dividends.
dp&l's amended articles of incorporation contained provisions permitted preferred stockholders to elect members dp&l board of directors in cumulative dividends on preferred stock in arrears aggregate equivalent to at four full quarterly dividends.
 based on preferred stockholders' ability to elect dp&l board of directors redemption of preferred shares considered not solely within control of issuer preferred stock was considered temporary equity.
 in september 2016  became probable preferred shares would become redeemable.
 company recorded adjustment of $ 5 million to retained earnings to adjust preferred shares to redemption value of $ 23 million.
 in october 2016 , dp&l redeemed all preferred shares.
 upon redemption  preferred shares no longer outstanding all rights of holders as shareholders of dp&l ceased to exist.
 ipalco 2014 in february 2015  cdpq purchased 15% ( 15 % ) of aes us investment , inc. , wholly-owned subsidiary owns 100% ( 100 % ) of ipalco  for $ 247 million  with option to invest additional $ 349 million in ipalco through 2016 in exchange for 17. 65% ( 17. 65 % ) equity stake.
 in april 2015  cdpq invested additional $ 214 million in ipalco resulted in cdpq's combined direct and indirect interest in ipalco of 24. 90% ( 24. 90 % ).
 result of transactions $ 84 million in taxes and transaction costs recognized as net decrease to equity.
 company recognized increase to additional paid-in capital and reduction to retained earnings of 377 million for excess of fair value of shares over book value.
no gain or loss recognized in net income transaction not a sale of in-substance real estate.
 in march 2016 , cdpq exercised remaining option investing $ 134 million in ipalco  resulted in cdpq's combined direct and indirect interest in ipalco of 30% ( 30 % ).
 company recognized increase to additional paid-in capital and reduction to retained earnings of $ 84 million for excess of fair value of shares over book value.
 in june 2016  cdpq contributed additional $ 24 million to ipalco  no impact to ownership structure of investment.
 subsequent adjustments to allocate earnings and dividends to cdpq classified as nci within permanent equity not probable shares become redeemable.

december 31,                           | 2016  | 2015
-------------------------------------- | ----- | -----
ipalco common stock                    | $ 618 | $ 460
colon quotas ( 1 )                     | 100   | 2014
ipl preferred stock                    | 60    | 60
other common stock                     | 4     | 2014
dpl preferred stock                    | 2014  | 18
total redeemable stock of subsidiaries | $ 782 | $ 538


2010.
 on november 1 , 2010  redeemed all $ 400 million of outstanding 6. 65% ( 6. 65 % ) notes due january 15 , 2011.
 redemption resulted in $ 5 million early extinguishment charge.
 receivables securitization facility 2013 at december 31 , 2010  recorded $ 100 million as secured debt under receivables securitization facility.
 ( see further discussion of receivables securitization facility in note 10. ) 15.
 variable interest entities entered into various lease transactions structure leases contain variable interest entities ( vies ).
 these vies created solely for purpose of lease transactions ( principally involving railroad equipment and facilities ) no other activities , assets or liabilities outside of lease transactions.
 within lease arrangements  right to purchase some or all assets at fixed prices.
 depending on market conditions , fixed-price purchase options in leases could potentially provide benefits to us ; benefits not expected to be significant.
 maintain and operate assets based on contractual obligations within lease arrangements , set specific guidelines consistent within railroad industry.
 no control over activities could materially impact fair value of leased assets.
 do not hold power to direct activities of vies and do not control ongoing activities significant impact on economic performance of vies.
 do not have obligation to absorb losses of vies or right to receive benefits of vies could potentially be significant to not considered to be primary beneficiary and do not consolidate these vies because actions and decisions do not have most significant effect on vie 2019s performance and fixed-price purchase price options not considered to potentially significant to vie 2019s.
 future minimum lease payments associated with vie leases totaled $ 4. 2 billion as of december 31 , 2010.
 16.
leases lease locomotives freight cars other property.
 consolidated statement financial position as of december 31 , 2010 and 2009 included $ 2520 million  net of $ 901 million accumulated depreciation $ 2754 million  net of $ 927 million accumulated depreciation for properties under capital leases.
 charge to income from depreciation for assets capital leases included within depreciation expense in consolidated statements of income.
 future minimum lease payments for operating capital leases with initial remaining non-cancelable lease terms excess of one year as of december 31, 2010  were : millions operating leases capital leases.
 majority of capital lease payments relate to locomotives.
 rent expense for operating leases with terms exceeding one month was $ 624 million in 2010  $ 686 million in 2009  $ 747 million in 2008.
 cash rental payments not made straight-line basis recognize variable rental expense straight-line basis over lease term.
 contingent rentals sub-rentals not significant.

millions                                | operatingleases | capitalleases
--------------------------------------- | --------------- | -------------
2011                                    | $ 613           | $ 311
2012                                    | 526             | 251
2013                                    | 461             | 253
2014                                    | 382             | 261
2015                                    | 340             | 262
later years                             | 2599            | 1355
total minimum lease payments            | $ 4921          | $ 2693
amount representing interest            | n/a             | -784 ( 784 )
present value of minimum lease payments | n/a             | $ 1909


goldman sachs group , inc.
 subsidiaries notes to consolidated financial statements in tables above : 2030 gross fair values exclude effects of counterparty netting and collateral netting not representative of firm 2019s exposure.
 2030 counterparty netting reflected in each level extent receivable and payable balances netted within same level included in counterparty netting in levels.
 where counterparty netting across levels  netting included in cross-level counterparty netting.
 2030 derivative assets shown as positive amounts derivative liabilities shown as negative amounts.
 significant unobservable inputs table below presents amount of level 3 assets ( liabilities ) ranges, averages medians of significant unobservable inputs used to value firm 2019s level 3 derivatives.
 level 3 assets ( liabilities ) range of significant unobservable inputs ( average/median ) as of december $ in millions 2017 2016.
 in table above : 2030 derivative assets shown as positive amounts derivative liabilities shown as negative amounts.
 2030 ranges represent significant unobservable inputs used in valuation of each type of derivative.
 2030 averages represent arithmetic average of inputs not weighted by relative fair value or notional of respective financial instruments.
 average greater than median indicates majority of inputs below average.
 for difference between average and median for credit spreads and oil spread inputs indicates majority of inputs fall in lower end of range.
 2030 ranges , averages medians of these inputs not representative of appropriate inputs to when calculating fair value of any one derivative.
 for highest correlation for interest rate derivatives appropriate for valuing specific interest rate derivative but may not be appropriate for valuing any other interest rate derivative.
ranges of inputs not represent uncertainty in or possible fair value measurements of firm 2019s level 3 derivatives.
 2030 interest rates , currencies and equities derivatives valued using option pricing models , credit derivatives valued using option pricing , correlation and discounted cash flow models commodities derivatives valued using option pricing and discounted cash flow models.
 2030 fair value of one instrument may be determined using multiple valuation techniques.
 for option pricing models and discounted cash flows models typically used together to determine fair value.
 level 3 balance encompasses both these techniques.
 2030 correlation within currencies and equities includes cross- product type correlation.
 2030 natural gas spread represents spread per million british thermal units of natural gas.
 2030 oil spread represents spread per barrel of oil and refined products.
 range of significant unobservable inputs information about ranges of significant unobservable inputs used to value firm 2019s level 3 derivative instruments : 2030 correlation.
 ranges for correlation cover variety of underliers within one product type (. equity index single stock names and across product types. interest rate currency across regions.
 cross-product type correlation inputs used to value more complex instruments lower than correlation inputs on assets within same derivative product type.
 2030 volatility.
 ranges for volatility cover numerous underliers across variety of markets , maturities strike prices.
 for volatility of equity indices generally lower than volatility of single stocks.
 2030 credit spreads , upfront credit points and recovery rates.
 ranges for credit spreads recovery cover variety of underliers ( index and single names ) regions  sectors  maturities credit qualities ( high-yield and investment-grade ).
broad range population gives rise to width ranges of significant unobservable inputs.
 130 goldman sachs 2017 form 10-k

$ in millions          | level 3 assets ( liabilities ) and range of significant unobservable inputs ( average/median ) as of december 2017 | level 3 assets ( liabilities ) and range of significant unobservable inputs ( average/median ) as of december 2016
---------------------- | ------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------
interest rates net     | $ -410 ( 410 )                                                                                | $ -381 ( 381 )
correlation            | ( 10 ) % (  % ) to 95% ( 95 % ) ( 71%/79% ( 71%/79 % ) )                                                           | ( 10 ) % (  % ) to 86% ( 86 % ) ( 56%/60% ( 56%/60 % ) )
volatility ( bps )     | 31 to 150 ( 84/78 )                                                                                | 31 to 151 ( 84/57 )
credit net             | $ 1505                                                                                | $ 2504
correlation            | 28% ( 28 % ) to 84% ( 84 % ) ( 61%/60% ( 61%/60 % ) )                                                              | 35% ( 35 % ) to 91% ( 91 % ) ( 65%/68% ( 65%/68 % ) )
credit spreads ( bps ) | 1 to 633 ( 69/42 )                                                                                | 1 to 993 ( 122/73 )
upfront credit points  | 0 to 97 ( 42/38 )                                                                                | 0 to 100 ( 43/35 )
recovery rates         | 22% ( 22 % ) to 73% ( 73 % ) ( 68%/73% ( 68%/73 % ) )                                                              | 1% ( 1 % ) to 97% ( 97 % ) ( 58%/70% ( 58%/70 % ) )
currencies net         | $ -181 ( 181 )                                                                                | $ 3
correlation            | 49% ( 49 % ) to 72% ( 72 % ) ( 61%/62% ( 61%/62 % ) )                                                              | 25% ( 25 % ) to 70% ( 70 % ) ( 50%/55% ( 50%/55 % ) )
commodities net        | $ 47                                                                                | $ 73
volatility             | 9% ( 9 % ) to 79% ( 79 % ) ( 24%/24% ( 24%/24 % ) )                                                                | 13% ( 13 % ) to 68% ( 68 % ) ( 33%/33% ( 33%/33 % ) )
natural gas spread     | $ ( 2.38 ) to $ 3.34 ( $ ( 0.22 ) /$ ( 0.12 ) )                                                                    | $ ( 1.81 ) to $ 4.33 ( $ ( 0.14 ) /$ ( 0.05 ) )
oil spread             | $ ( 2.86 ) to $ 23.61 ( $ 6.47/$ 2.35 )                                                                            | $ ( 19.72 ) to $ 64.92 ( $ 25.30/$ 16.43 )
equities net           | $ -1249 ( 1249 )                                                                                | $ -3416 ( 3416 )
correlation            | ( 36 ) % (  % ) to 94% ( 94 % ) ( 50%/52% ( 50%/52 % ) )                                                           | ( 39 ) % (  % ) to 88% ( 88 % ) ( 41%/41% ( 41%/41 % ) )
volatility             | 4% ( 4 % ) to 72% ( 72 % ) ( 24%/22% ( 24%/22 % ) )                                                                | 5% ( 5 % ) to 72% ( 72 % ) ( 24%/23% ( 24%/23 % ) )


directors in advance for review.
 cbot directors determine proposed rule change impair business of cbot or business opportunities of holders cbot memberships, change must be submitted to committee of three cbot directors and two cme directors defined in bylaws ).
 rights our ability to take certain actions in best interests of company and shareholders including actions to operation open outcry trading facilities and pricing decisions may be limited by rights of members.
 item 1b. unresolved staff comments not applicable.
 item 2.
 properties global headquarters located in chicago , illinois at 20 south wacker drive.
 description of key locations and facilities.
 location primary use owned/leased lease expiration approximate size ( in square feet ) 1 ) 20 south wacker drive , chicago , illinois global headquarters and office space leased 2022 2 ) 490000 141 west jackson chicago , illinois trading floor and office space owned n/a 1500000 3 ) 550 west washington chicago, illinois office space leased 2023 225000 one north end new york , new york york trading floor and office space mixed ( 4 ) 2069 500000 5 ) 33 cannon street , london office space leased 2019 14000 ( 6 ) one new change , london office space leased 2026 40000 7 ) annex data center chicagoland area business continuity leased 2014 100000 remote data center chicagoland area business continuity leased 2017 50000 data center 3 chicagoland area business continuity and co-location owned n/a 430000 1 size represents amount space leased unless otherwise noted.
 2 initial lease expires in 2022 with two consecutive options to extend term for seven and ten years .
 3 we occupy approximately 425000 square feet of 141 west jackson complex.
( 4 ) one north end property subject to ground lease with battery park city authority for site of our new york offices and trading facility.
 in accordance with terms of lease , we deemed to lease building and improvements from landlord.
 do not make lease payments to landlord related to building and receive financial benefit of rental income.
 ( 5 ) we occupy approximately 350000 square feet of one north end building.
 ( 6 ) have termination right effective in first quarter of 2012  intend to exercise in first quarter of 2011.
 ( 7 ) expect to occupy space at one new change in second quarter of 2011.
 also lease global office space around world and partnered with major global telecommunications carriers in with telecommunications hubs place data cabinets within carriers 2019 existing secured data centers.
 believe facilities adequate for current operations additional space can be obtained if needed.
 item 3.
 legal proceedings see 201clegal matters 201d in note 18.
 contingencies to consolidated financial statements beginning on page 96 for cme group 2019s litigation disclosure incorporated herein by reference.
 directors in advance for review.
 in event cbot directors determine discretion proposed rule change will impair business of cbot or business opportunities of holders of cbot memberships , such change must be submitted to committee of three cbot directors and two cme directors ( defined in bylaws ).
 with rights our ability to take certain actions in best interests of company and shareholders  including actions relating to operation of open outcry trading facilities and certain pricing decisions  may be limited by rights of members.
 item 1b. unresolved staff comments not applicable.
 item 2.
 properties global headquarters are located in chicago , illinois at 20 south wacker drive.
description of key locations facilities.
 location primary use owned/leased lease expiration approximate size ( in square feet ) 1 ) 20 south wacker drive , chicago , illinois global headquarters office space leased 2022 ( 2 ) 490000 141 west jackson chicago , illinois chicago trading floor office space owned n/a 1500000 ( 3 ) 550 west washington chicago , illinois office space leased 2023 225000 one north end new york, new york trading floor and office space mixed ( 4 ) 2069 500000 5 ) 33 cannon street , london office space leased 2019 14000 ( 6 ) one new change, london office space leased 2026 40000 ( 7 ) annex data center chicagoland area business continuity leased 2014 100000 remote data center chicagoland area business continuity leased 2017 50000 data center 3 chicagoland area business continuity co-location owned n/a 430000 1 ) size represents amount space leased unless otherwise noted.
 2 initial lease expires 2022 two consecutive options to extend term for seven and ten years.
 3 ) occupy approximately 425000 square feet of 141 west jackson complex.
 4 ) one north end property subject to ground lease with battery park city authority for site new york offices and trading facility.
 accordance terms lease deemed to lease building improvements from landlord.
 do not make lease payments to landlord related receive financial benefit of rental income.
 5 ) occupy approximately 350000 square feet of one north end building.
 6 ) termination right effective in first quarter of 2012 intend to exercise in first quarter of 2011.
 7 expect to occupy space at one new change in second quarter of 2011.
lease global office space world partnered with major global telecommunications carriers with telecommunications hubs place data cabinets within carriers 2019 existing secured data centers.
 believe our facilities adequate for current operations additional space can be obtained if needed.
 item 3.
 legal proceedings see 201clegal matters 201d in note 18.
 contingencies to consolidated financial statements beginning on page 96 for cme group 2019s litigation disclosure incorporated herein by reference.

location                             | primary use                             | owned/leased | lease expiration | approximate size ( in squarefeet ) ( 1 )
------------------------------------ | --------------------------------------- | ------------ | ---------------- | ----------------------------------------
20south wacker drive chicagoillinois | global headquarters and office space    | leased       | 2022 ( 2 )       | 490000
141west jacksonchicago illinois      | chicago trading floor and office space  | owned        | n/a              | 1500000 ( 3 )
550west washingtonchicago illinois   | office space                            | leased       | 2023             | 225000
onenorth endnew york new york        | new york trading floor and office space | mixed ( 4 )  | 2069             | 500000 ( 5 )
33cannon street london               | office space                            | leased       | 2019             | 14000 ( 6 )
onenew change london                 | office space                            | leased       | 2026             | 40000 ( 7 )
annexdata centerchicagoland area     | business continuity                     | leased       | 2014             | 100000
remotedata centerchicagoland area    | business continuity                     | leased       | 2017             | 50000
datacenter 3chicagoland area         | business continuity and co-location     | owned        | n/a              | 430000


3.
 dividends from subsidiaries and affiliates cash dividends received from consolidated subsidiaries affiliates accounted for by equity method were as follows ( in millions ) :.
 4.
 guarantees and letters of credit guarantees 2014in connection with project financing , acquisition  power purchase agreements , company has undertaken limited obligations and commitments  most effective or terminated upon future events.
 these obligations commitments  excluding those collateralized by letter of credit other obligations limited as of december 31 , 2003  by terms agreements to aggregate of approximately $ 515 million representing 55 agreements with exposures from less than $ 1 million up to $ 100 million.
, $ 147 million represents credit enhancements for non-recourse debt , $ 38 million commitments to fund equity in projects under development or construction.
 letters of credit 2014at december 31 , 2003 , company had $ 89 million in letters of credit outstanding 9 agreements with exposures from less than $ 1 million up to $ 36 million  to guarantee performance to certain project development construction activities subsidiary operations.
 company pays letter of credit fee from 0. 5% ( 0. 5 % ) to 5. 00% ( 5. 00 % ) per annum on outstanding amounts.
 company had $ 4 million in surety bonds outstanding at december 31 , 2003.

| 2003  | 2002  | 2001
------------ | ----- | ----- | ------
subsidiaries | $ 807 | $ 771 | $ 1038
affiliates   | 43    | 44    | 21


marathon oil corporation notes consolidated financial statements 7.
 dispositions outside-operated norwegian properties 2013 october 31 , 2008 closed sale of norwegian outside-operated properties undeveloped offshore acreage in heimdal area norwegian north sea for net proceeds $ 301 million pretax gain of $ 254 million as of december 31 , 2008.
 pilot travel centers 2013 october 8 , 2008 completed sale of 50 percent ownership interest in ptc.
 sale proceeds $ 625 million  pretax gain sale of $ 126 million.
 preceding sale received $ 75 million partial redemption of ownership interest from ptc accounted for return of investment.
 operated irish properties 2013 december 17 , 2008 agreed to sell operated properties in ireland for proceeds of $ 180 million  before post-closing adjustments cash on hand at closing.
 closing subject to completion of necessary administrative processes.
 as of december 31 , 2008  operating assets and liabilities classified as held for sale  disclosed by major class in following table : ( in millions ) 2008.
 8.
 discontinued operations june 2 , 2006 sold russian oil exploration and production businesses in khanty-mansiysk region of western siberia.
 agreement received $ 787 million for businesses plus preliminary working capital closing adjustments of $ 56 million for total transaction value of $ 843 million.
 proceeds net of transaction costs and cash held by russian businesses at transaction date totaled $ 832 million.
 gain on sale of $ 243 million ( $ 342 million before income taxes ) reported in discontinued operations for 2006.
 income taxes on gain reduced by utilization capital loss carryforward.
 exploration and production segment goodwill of $ 21 million allocated to russian assets reduced reported gain.
adjustments to sales price completed in 2007 additional gain on sale of $ 8 million ( $ 13 million before income taxes ) recognized.
 activities russian businesses reported as discontinued operations in consolidated statements of income statements cash flows for 2006.
 revenues applicable to discontinued operations were $ 173 million pretax income from discontinued operations was $ 45 million for 2006.

( in millions )          | 2008
------------------------ | -----
current assets           | $ 164
noncurrent assets        | 103
total assets             | 267
current liabilities      | 62
noncurrent liabilities   | 199
total liabilities        | 261
net assets held for sale | $ 6


we may elect to use foreign currency forward contracts to reduce risk from exchange rate fluctuations on intercompany transactions projected inventory purchases for our european canadian subsidiaries.
 we may enter into foreign currency forward contracts to reduce risk with exchange rate fluctuations on pound sterling balance sheet items.
 we do not enter into derivative financial instruments for speculative or trading purposes.
 foreign currency forward contracts outstanding as of december 31 , 2011 we receive.
 dollars in exchange for canadian dollars at average exchange rate of 1. 03 cad per $ 1. 00 .
 dollars in exchange for euros at exchange rate 20ac0. 77 per $ 1. 00 and euros in exchange for pounds sterling at exchange rate of a30. 84 per 20ac1. 00.
 as of december 31 , 2011 notional value of outstanding foreign currency forward contracts for our canadian subsidiary was $ 51. 1 million with contract maturities of 1 month or less  notional value of foreign currency forward contracts for european subsidiary was $ 50. 0 million with contract maturities of 1 month.
 as of december 31 , 2011 notional value of our outstanding foreign currency forward contract used to mitigate exchange rate fluctuations on pound sterling balance sheet items was 20ac10. 5 million  or $ 13. 6 million  with contract maturity of 1 month.
 foreign currency forward contracts not designated as cash flow hedges changes in their fair value recorded in other expense  net on consolidated statements of income.
 fair values of foreign currency forward contracts were liabilities of $ 0. 7 million and $ 0. 6 million as of december 31 , 2011 and 2010  included in accrued expenses on consolidated balance sheet.
 refer to note 10 to consolidated financial statements for discussion of fair value measurements.
included in other expense , net were following amounts related to changes in foreign currency exchange rates derivative foreign currency forward contracts:.
 we enter into foreign currency forward contracts with major financial institutions with investment grade credit ratings exposed to credit losses in non-performance by these financial institutions.
 credit risk generally limited to unrealized gains in foreign currency forward contracts.
 we monitor credit quality of these financial institutions consider risk of counterparty default to minimal.
 we entered into foreign currency forward contracts to minimize impact of foreign currency exchange rate fluctuations on future cash flows, cannot be assured foreign currency exchange rate fluctuations not material adverse impact on our financial condition results of operations.
 inflation inflationary factors increases in cost of product overhead costs may adversely affect our operating results.
 not believe inflation material impact on our financial position or results of operations to date, high rate of inflation in future may have adverse effect on ability to maintain current levels of gross margin selling , general administrative expenses as percentage of net revenues if selling prices of products do not increase with increased costs.

year ended december 31 , ( in thousands )                  | year ended december 31 , 2011 | year ended december 31 , 2010 | 2009
---------------------------------------------------------- | ----------------------------- | ----------------------------- | --------------
unrealized foreign currency exchange rate gains ( losses ) | $ -4027 ( 4027 )              | $ -1280 ( 1280 )              | $ 5222
realized foreign currency exchange rate gains ( losses )   | 298                           | -2638 ( 2638 )                | -261 ( 261 )
unrealized derivative losses                               | -31 ( 31 )                    | -809 ( 809 )                  | -1060 ( 1060 )
realized derivative gains ( losses )                       | 1696                          | 3549                          | -4412 ( 4412 )


income tax expense.
 operating income 1 ) $ 5272 $ 4570 $ 4664 $ 5287 $ 4674 $ 4695 total nonoperating income expense ) 1 ) 2 ) ( 32 ) ( 108 ) ( 69 ) ) ( 70 ) income before income taxes 2 ) $ 5240 $ 4462 $ 4595 $ 5255 $ 4566 $ 4625 income tax expense 3 ) $ 270 $ 1290 $ 1250 $ 1539 $ 1352 $ 1312 effective tax rate 3 ) 5. 2% ( 5. 2 % ) 28. 9% ( 28. 9 % ) 27. 2% ( 27. 2 % ) 29. 3% ( 29. 3 % ) 29. 6% ( 29. 6 % ) 28. 4% ( 28. 4 % ) 1 ) see non-gaap financial measures for information reconciliation adjusted items.
 2 ) net income ( loss ) attributable to.
 3 ) gaap income tax expense effective tax rate for 2017 reflects $ 1. 2 billion net tax benefit related to 2017 tax act.
 company 2019s tax rate affected by tax rates foreign jurisdictions relative income earned company expects consistent near term.
 significant foreign jurisdictions lower statutory tax rates than.
 federal statutory rate of 35% ( 35 % ) include united kingdom channel islands  ireland netherlands.
 2017.
 income tax expense gaap ) reflected 2022 amounts related to 2017 tax act : 2022 $ 106 million tax expense revaluation of deferred income tax assets ; 2022 $ 1758 million noncash tax benefit revaluation of deferred income tax liabilities ; 2022 $ 477 million tax expense mandatory repatriation of undistributed foreign earnings profits.
2022 noncash expense of $ 16 million  associated with revaluation of deferred income tax liabilities domestic state local tax changes ; 2022 $ 173 million discrete tax benefits primarily related to stock-based compensation awards including $ 151 million related to adoption new accounting guidance stock-based compensation awards.
 see note 2 , significant accounting policies  for further information.
 as adjusted effective tax rate of 29. 3% ( 29. 3 % ) for 2017 excluded noncash deferred tax revaluation benefit of $ 1758 million and noncash expense of $ 16 million above not cash flow impact ensure comparability among periods presented.
 deemed repatriation tax expense of $ 477 million excluded from as adjusted results due to one-time nature ensure comparability among periods presented.
 2016.
 income tax expense ( gaap ) reflected : 2022 net noncash benefit of $ 30 million associated with revaluation of certain deferred income tax liabilities ; 2022 benefit from $ 65 million of nonrecurring items including resolution of certain outstanding tax matters.
 as adjusted effective tax rate of 29. 6% ( 29. 6 % ) for 2016 excluded net noncash benefit of $ 30 million not cash flow impact ensure comparability among periods presented.
 2015.
 income tax expense ( gaap ) reflected : 2022 net noncash benefit of $ 54 million associated with revaluation of certain deferred income tax liabilities ; 2022 benefit from $ 75 million of nonrecurring items due to realization of losses from changes in company 2019s organizational tax structure resolution of certain outstanding tax matters.
 as adjusted effective tax rate of 28. 4% ( 28. 4 % ) for 2015 excluded net noncash benefit of $ 54 million not cash flow impact ensure comparability among periods presented.
balance sheet overview as adjusted balance sheet table presents reconciliation of consolidated statement of financial condition presented on gaap basis to consolidated statement financial condition  excluding impact of separate account assets separate account collateral held under securities lending agreements ( related to lending separate account securities ) separate account liabilities collateral liabilities under securities lending agreements consolidated sponsored investment funds  including consolidated vies.
 company presents as adjusted balance sheet as additional information to enable investors to exclude certain assets equal and offsetting liabilities or noncontrolling interests not impact on stockholders 2019 equity or cash flows.
 management views as adjusted balance sheet  contains non-gaap financial measures  as economic presentation of company 2019s total assets and liabilities ; not advocate investors consider such non-gaap financial measures in isolation from or substitute for financial information prepared in accordance with gaap.
 separate account assets liabilities separate account collateral held under securities lending agreements separate account assets maintained by blackrock life limited , wholly owned subsidiary of company registered life insurance company in united kingdom  represent segregated assets for funding individual and group pension contracts.

( in millions )                                   | gaap 2017      | gaap 2016        | gaap 2015        | gaap 2017        | gaap 2016        | 2015
------------------------------------------------- | -------------- | ---------------- | ---------------- | ---------------- | ---------------- | ----------------
operating income ( 1 )                            | $ 5272         | $ 4570           | $ 4664           | $ 5287           | $ 4674           | $ 4695
total nonoperating income ( expense ) ( 1 ) ( 2 ) | -32 ( 32 )     | -108 ( 108 )     | -69 ( 69 )       | -32 ( 32 )       | -108 ( 108 )     | -70 ( 70 )
income before income taxes ( 2 )                  | $ 5240         | $ 4462           | $ 4595           | $ 5255           | $ 4566           | $ 4625
income tax expense ( 3 )                          | $ 270          | $ 1290           | $ 1250           | $ 1539           | $ 1352           | $ 1312
effective tax rate ( 3 )                          | 5.2% ( 5.2 % ) | 28.9% ( 28.9 % ) | 27.2% ( 27.2 % ) | 29.3% ( 29.3 % ) | 29.6% ( 29.6 % ) | 28.4% ( 28.4 % )


realignment other 201d expenses.
 acquisition , integration  realignment other expenses for years ended december 31 , 2009 , 2008 2007  included ( in millions ) :.
 adjustment or impairment of acquired assets obligations relates to impairment on assets acquired in business combinations adjustments to certain liabilities of acquired companies due to changes in circumstances surrounding liabilities subsequent to related measurement period.
 consulting professional fees relate to third-party integration consulting in areas tax , compliance logistics human resources include third-party fees related to severance termination benefits matters.
 fees include legal fees related to litigation matters involving acquired businesses existed prior to acquisition or resulted from acquisition.
 during 2009 , commenced global realignment initiative to focus on business opportunities support strategic priorities.
 realignment initiated changes in work force , eliminating positions in some areas increasing others.
 approximately 300 employees from across globe affected by actions.
 result of changes work force headcount reductions from acquisitions recorded expense of $ 19. 0 million related to severance other employee termination-related costs.
 termination benefits provided in accordance with existing local government policies considered ongoing benefits.
 costs accrued when became probable estimable recorded as part of other current liabilities.
 majority of costs paid during 2009.
 information technology integration relates to non- capitalizable costs associated with integrating information systems of acquired businesses.
 in-process research and development charges for 2008 relate to acquisition of abbott spine.
 in-process research and development charges for 2007 relate to acquisitions of endius and orthosoft.
 in 2009  ceased using certain leased facilities recorded expense for remaining lease payments , less estimated sublease recoveries , wrote-off any assets used in those facilities.
facility and employee relocation relates to costs associated with relocating facilities.
 consolidated legacy european distribution centers into new distribution center in eschbach , germany.
 over past three years acquired of u. s.
 and foreign-based distributors.
 incurred costs related to acquisition and integration of businesses.
 certain litigation matters relate to costs recognized during year for estimated or actual settlement of legal matters including patent litigation commercial litigation matters matters from acquisitions of competitive distributorships in prior years.
 recognize expense for potential settlement of legal matter when believe probable loss incurred can reasonably estimate loss.
 in 2009  effort to settle many these matters to avoid further litigation costs.
 contract termination costs relate to terminated agreements in with integration of acquired companies.
 terminated contracts primarily relate to sales agents and distribution agreements.
 cash and cash equivalents 2013 consider all highly liquid investments with original maturity of three months or less to be cash equivalents.
 carrying amounts reported in balance sheet for cash cash equivalents valued at cost  approximates fair value.
 certificates of deposit 2013 invest in cash deposits with original maturities greater than three months classify these investments as certificates of deposit on consolidated balance sheet.
 carrying amounts reported in balance sheet for certificates of deposit valued at cost , approximates fair value.
 inventories 2013 inventories  net of allowances for obsolete and slow-moving goods stated at lower of cost or market  with cost determined on first-in first-out basis.
 property , plant and equipment 2013 property plant equipment carried at cost less accumulated depreciation.
depreciation computed straight-line method based estimated useful lives ten to forty years for buildings improvements three to eight years for machinery equipment.
 maintenance repairs expensed as incurred.
 review property  plant equipment for impairment whenever events changes indicate carrying value asset not recoverable.
 impairment loss recognized when estimated future undiscounted cash flows asset less than carrying amount.
 impairment loss measured as amount carrying amount asset exceeds fair value.
 z i m m e r h o l d i n g s , i n c.
 2 0 0 9 f o r m 1 0 - k a n n u a l r e p o r t notes to consolidated financial statements ( continued ) %%transmsg*** transmitting job : c55340 pcn : 043000000 ***%pcmsg|43 |00008|yes|no|02/24/2010 01:32|0|0|page valid  no graphics -- color : d|

| 2009           | 2008             | 2007
-------------------------------------------------------------------------------- | -------------- | ---------------- | --------------
adjustment or impairment of acquired assets and obligations net                  | $ -1.5 ( 1.5 ) | $ -10.4 ( 10.4 ) | $ -1.2 ( 1.2 )
consulting and professional fees                                                 | 11.7           | 13.2             | 1.0
employee severance and retention including share-based compensation acceleration | 19.0           | 0.2              | 1.6
information technology integration                                               | 1.1            | 0.7              | 2.6
in-process research & development                                                | 2013           | 38.5             | 6.5
vacated facilities                                                               | 1.4            | 2013             | 2013
facility and employee relocation                                                 | 5.4            | 7.5              | 2013
distributor acquisitions                                                         | 1.1            | 6.9              | 4.1
certain litigation matters                                                       | 23.4           | 2013             | 2013
contract terminations                                                            | 9.4            | 5.7              | 5.4
other                                                                            | 4.3            | 6.2              | 5.2
acquisition integration realignment and other                                    | $ 75.3         | $ 68.5           | $ 25.2


consolidated financial statements 2014 weighted average grant-date fair value of share awards granted in years ended may 31 , 2007 2006 was $ 45 and $ 36 , respectively.
 total fair value of share awards vested during years ended may 31 , 2008 , 2007 2006 was $ 4. 1 million , $ 1. 7 million $ 1. 4 million ,.
 recognized compensation expenses for restricted stock of $ 5. 7 million , $ 2. 7 million , $ 1. 6 million in years ended may 31, 2008  2007 2006.
 as of may 31 , 2008  $ 15. 2 million of total unrecognized compensation cost related to unvested restricted stock awards expected to be recognized over average period 2. 9 years.
 employee stock purchase plan sale of 2. 4 million shares of common stock authorized.
 employees may designate up to $ 25 thousand or 20% ( % ) of annual compensation for purchase of stock.
 periods prior to october 1, 2006  price for shares purchased under plan was lower of 85% ( 85 % ) of market value on first day or last day of quarterly purchase period.
 quarterly purchase period beginning on october 1 , 2006  price for shares purchased plan is 85% ( 85 % ) of market value on last day of quarterly purchase period.
 at may 31 , 2008 , 0. 7 million shares issued under this plan 1. 7 million shares reserved for future issuance.
 weighted average grant-date fair value of each designated share purchased under plan was $ 6 , $ 8 and $ 8 in years ended may 31 , 2008 , 2007 2006 .
 for quarterly purchases after october 1 , 2006  fair value of each designated share purchased under employee stock purchase plan based on 15% ( 15 % ) discount on purchase date.
for purchases prior to october 1, 2006 , fair value of each designated share purchased under employee stock purchase plan estimated on date of grant using black-scholes valuation model using following weighted average assumptions:.
 risk-free interest rate based on yield of zero coupon united states treasury security with maturity equal to expected life of option from date of grant.
 assumption on expected volatility based on historical volatility.
 dividend yield assumption calculated using average stock price over preceding year and annualized amount of current quarterly dividend.
 since purchase price for shares under plan based on market value on first day or last day of quarterly purchase period , use expected life of three months to determine fair value of each designated share.

| 2007               | 2006
------------------------ | ------------------ | ------------------
risk-free interest rates | 4.93% ( 4.93 % )   | 3.72% ( 3.72 % )
expected volatility      | 37.02% ( 37.02 % ) | 26.06% ( 26.06 % )
dividend yields          | 0.19% ( 0.19 % )   | 0.34% ( 0.34 % )
expected lives           | 3 months           | 3 months


royal caribbean cruises ltd.
 notes to consolidated financial statements 2014 continued ) note 9.
 stock-based employee compensation four stock-based compensation plans provide for awards to officers , directors key employees.
 plans consist of 1990 employee stock option plan , 1995 incentive stock option plan  2000 stock award plan  2008 equity plan.
 1990 stock option plan and 1995 incentive stock option plan terminated terms in march 2000 and february 2005 .
 2000 stock award plan  amended 2008 equity plan provide for issuance of incentive and non-qualified stock options , stock appreciation rights, iii ) restricted stock  iv ) restricted stock units v ) up to 13000000 performance shares of common stock for 2000 stock award plan and up to 5000000 performance shares of common stock for 2008 equity plan.
 during any calendar year no one individual granted awards of more than 500000 shares.
 options and restricted stock units outstanding as of december 31, 2009 vest in equal installments over four to five years from date of grant.
 options and restricted stock units forfeited if recipient ceases to be director or employee before shares vest.
 options granted at price not less than fair value of shares on date of grant expire not later than ten years after date of grant.
 provide employee stock purchase plan purchase by employees of up to 800000 shares of common stock aggregate.
 offerings to employees made quarterly basis.
 subject to certain limitations purchase price for each share of common stock equal to 90% ( 90 % ) of average of market prices of common stock as reported on new york stock exchange on first business day of purchase period and last business day of each month of purchase period.
 shares of common stock of 65005 , 36836 and 20759 issued under espp at weighted-average price of $ 12.78 , $ 20. 97 and $ 37. 25 during 2009 , 2008 2007  respectively.
 under chief executive officer 2019s employment agreement contributed 10086 shares of common stock quarterly to maximum of 806880 shares to trust on his behalf.
 in january 2009  employment agreement and related trust agreement amended.
 768018 shares distributed from trust future quarterly share distributions issued directly to chief executive officer.
 total compensation expenses for employee stock-based compensation for year ended december 31 , 2009 was $ 16. 8 million.
 $ 16. 2 million included within marketing, selling administrative expenses $ 0. 6 million included within payroll and related expenses.
 total compensation expense for employee stock-based compensation for year ended december 31 , 2008 was $ 5. 7 million.
, $ 6. 4 million  included benefit of approximately $ 8. 2 million due to change in employee forfeiture rate assumption included within marketing , selling administrative expenses income of $ 0. 7 million included within payroll and related expenses included benefit of approximately $ 1. 0 million due to change in forfeiture rate.
 total compensation expenses for employee stock-based compensation for year ended december 31 , 2007 was $ 19. 0 million.
 $ 16. 3 million included within marketing , selling administrative expenses $ 2. 7 million included within payroll and related expenses.
 fair value of each stock option grant estimated on date of grant using black-scholes option pricing model.
 estimated fair value of stock options less estimated forfeitures amortized over vesting period using graded-vesting method.
 assumptions in black-scholes option-pricing model expected volatility based on combination of historical and implied volatilities.
risk-free interest rate based on united states treasury zero coupon issues remaining term equal to expected option life assumed at date of grant.
 expected term calculated based on historical experience represents time period options remain outstanding.
 estimate forfeitures based on historical pre-vesting forfeiture rates revise to reflect actual experience.
 2008 increased estimated forfeiture rate from 4% ( 4 % ) for options 8. 5% ( 8. 5 % ) for restricted stock units to 20% ( 20 % ) reflect changes employee retention rates.

| 2009             | 2008             | 2007
------------------------------- | ---------------- | ---------------- | ----------------
dividend yield                  | 0.0% ( 0.0 % )   | 1.9% ( 1.9 % )   | 1.3% ( 1.3 % )
expected stock price volatility | 55.0% ( 55.0 % ) | 31.4% ( 31.4 % ) | 28.0% ( 28.0 % )
risk-free interest rate         | 1.8% ( 1.8 % )   | 2.8% ( 2.8 % )   | 4.8% ( 4.8 % )
expected option life            | 5 years          | 5 years          | 5 years


rm&t segment marathon 2019s rm&t operations use derivative commodity instruments to mitigate price risk of crude oil other feedstock purchases protect carrying values of excess inventories protect margins on fixed price sales of refined products lock-in price spread between refined products and crude oil.
 derivative instruments used to mitigate price risk between time foreign and domestic crude oil and other feedstock purchases for refinery supply are priced and when refined into salable petroleum products.
 natural gas options to manage price risk with approximately 60% ( 60 % ) of anticipated natural gas purchases for refinery use through first quarter of 2004 and 50% ( 50 % ) through second quarter of 2004.
 derivative commodity instruments to protect value of excess refined product , crude oil and lpg inventories.
 derivatives lock in margins with future fixed price sales of refined products to non-retail customers.
 derivative commodity instruments protect against decreases in future crack spreads.
 limited derivative instruments used to take advantage of opportunities in commodity markets.
 derivative gains ( losses ) in rm&t segment income for each last two years summarized in following table : strategy ( in millions ) 2003 2002.
 derivative losses occur when market prices increase offset by gains on underlying physical commodity transaction.
 conversely derivative gains occur when market prices decrease offset by losses on underlying physical commodity transaction.
 segment marathon used derivative instruments to convert fixed price of long-term gas sales contract to market prices.
 underlying physical contract is for specified annual quantity of gas matures in 2008.
marathon use derivative instruments to convert shorter term typically less than a year ) fixed price contracts to market prices ongoing purchase for resale activity hedge purchased gas injected into storage for resale.
 derivative gains ( losses ) in oerb segment income were $ 19 million , $ ( 8 ) million $ ( 29 ) million for 2003  2002 2001.
 oerb 2019s trading activity gains ( losses ) of $ ( 7 ) million , $ 4 million $ ( 1 ) million in 2003  2002 2001 included in amounts.
 commodity risk marathon subject to basis risk  caused by factors relationship between commodity futures prices in derivative commodity instruments and cash market price of underlying commodity.
 natural gas transaction prices based on industry reference prices vary from prices local markets.
 new york mercantile exchange ( 201cnymex 201d ) contracts for natural gas priced at louisiana 2019s henry hub  underlying quantities natural gas may be produced and sold in western united states at prices not strict correlation with nymex prices.
 commodity price changes in one region not reflected in other regions derivative commodity instruments may no longer provide expected hedge increased exposure to basis risk.
 regional price differences could yield favorable or unfavorable results.
 otc transactions used to manage exposure to portion of basis risk.
 marathon subject to liquidity risk  by timing delays in liquidating contract positions due to potential inability to identify counterparty willing accept offsetting position.
 due to large number of active participants liquidity risk exposure low for exchange-traded transactions.

strategy ( in millions )                      | 2003           | 2002
--------------------------------------------- | -------------- | --------------
mitigate price risk                           | $ -112 ( 112 ) | $ -95 ( 95 )
protect carrying values of excess inventories | -57 ( 57 )     | -41 ( 41 )
protect margin on fixed price sales           | 5              | 11
protect crack spread values                   | 6              | 1
trading activities                            | -4 ( 4 )       | 2013
total net derivative losses                   | $ -162 ( 162 ) | $ -124 ( 124 )


70| duke realty corporation annual report 2009 table summarizes transactions for our rsus  excluding dividend equivalents for 2009 : weighted average number of grant date restricted stock units rsus fair value.
 compensation cost recognized for rsus totaled $ 7. 3 million , $ 4. 9 million and $ 3. 0 million for years ended december 31 , 2009 , 2008 and 2007  respectively.
 as of december 31 , 2009 $ 6. 7 million of total unrecognized compensation expense related to nonvested rsus granted under plan expected to be recognized over weighted average period of 3. 3 years.
 14 financial instruments exposed to capital market risk  changes in interest rates.
 manage interest rate risk may enter into interest rate hedging arrangements.
 do not utilize derivative financial instruments for trading or speculative purposes.
 in november 2007  entered into forward starting interest swaps with notional amounts to hedge interest rates on $ 300. 0 million of anticipated debt offerings in 2009.
 forward starting swaps designated and tested for effectiveness as cash flow hedges.
 in march 2008 settled forward starting swaps made cash payment of $ 14. 6 million to counterparties.
 effectiveness test performed settlement date concluded highly effective cash flow hedge still in place for expected debt offering.
 amount paid in settlement  approximately $ 700000 reclassified to interest expense result of partial ineffectiveness calculated at settlement date.
 net amount of $ 13. 9 million recorded in other comprehensive income ( ) recognized through interest expense over life of hedged debt offering took place in may 2008.
 remaining unamortized amount as reduction to accumulated oci as of december 31, 2009 is $ 9. 3 million.
 in august 2005  entered into $ 300.0 million cash flow hedges through forward starting interest rate swaps to hedge interest rates on $ 300. 0 million anticipated debt offerings in 2007.
 swaps qualified for hedge accounting  changes in fair value recorded in oci.
 with september 2007 issuance of $ 300. 0 million of senior unsecured notes  terminated cash flow hedges designated.
 settlement amount received of $ 10. 7 million recognized to earnings through reduction of interest expense over term of hedged cash flows.
 remaining unamortized amount included as increase to accumulated oci as of december 31, 2009 is $ 8. 2 million.
 ineffective portion of hedge insignificant.
 effectiveness of hedges evaluated throughout lives using hypothetical derivative method change in fair value of actual swap as hedging instrument compared to change in fair value of hypothetical swap.
 no material interest rate derivatives  considering fair value and notional amount at december 31 , 2009.

restricted stock units   | number of rsus     | weighted average grant date fair value
------------------------ | ------------------ | --------------------------------------
rsus at december 31 2008 | 401375             | $ 29.03
granted                  | 1583616            | $ 9.32
vested                   | -129352 ( 129352 ) | $ 28.39
forfeited                | -172033 ( 172033 ) | $ 12.53
rsus at december 31 2009 | 1683606            | $ 12.23


hologic , inc.
 notes to consolidated financial statements ( continued ) in thousands except per share data ) company considered provision of eitf issue no.
 95-8 , accounting for contingent consideration paid to shareholders of acquired enterprise in purchase business combination concluded contingent consideration represents additional purchase price.
 during fourth quarter of fiscal 2007 company paid approximately $ 19000 to former suros shareholders for first annual earn-out period resulting in increase to goodwill for same amount.
 goodwill will increased by amount additional consideration , if when becomes due and payable for second annual earn-out.
 in addition to earn company increased goodwill related to suros acquisition $ 210 during year ended september 29 , 2007.
 increase primarily related to recording liability of approximately $ 550 in accordance with eitf 95-3 related to termination of certain employees ceased all services for company.
 approximately $ 400 of liability paid during year ended september 29 , 2007 balance expected to be paid by end of second quarter of fiscal 2008.
 increase partially offset by decrease to goodwill result of change in valuation of certain assets and liabilities acquired based on information received during year ended september 29 , 2007.
 no other material changes to purchase price allocations as disclosed in company 2019s form 10-k for year ended september 30 , 2006.
 as part of purchase price allocation all intangible assets part of acquisition were identified and valued.
 determined only customer relationship , trade name , developed technology and know how and in-process research and development had separately identifiable values.
 customer relationship represents suros large installed base expected to purchase disposable products regular basis.
 trade name represent suros product names company intends to continue to use.
developed technology and know how represents marketable purchased products company continues to resell utilize to enhance incorporate into company 2019s existing products.
 estimated $ 4900 of purchase price allocated to in-process research and development projects primarily related to suros 2019 disposable products.
 projects at various stages of completion include next generation handpiece and site marker technologies.
 company continued to work on projects expects be completed during fiscal 2008.
 deferred income tax liability relates to tax effect of acquired identifiable intangible assets  fair value adjustments to acquired inventory amounts not deductible for tax purposes partially offset by acquired net operating loss carry forwards company believes realizable.
 for acquisitions discussed goodwill represents excess of purchase price over net identifiable tangible and intangible assets acquired.
 company determined acquisition of each aeg , biolucent , r2 suros resulted in recognition of goodwill because of synergies unique to company strength of acquired workforce.
 supplemental unaudited pro-forma information pro forma information presents consolidated results of operations of company , r2 suros as if acquisitions occurred at beginning of fiscal 2006  with pro forma adjustments to give effect to amortization of intangible assets  increase in interest expense on acquisition financing certain other adjustments with related tax effects:.

| 2006
------------------------------------------ | --------
net revenue                                | $ 524340
net income                                 | 28649
net income per share 2014basic             | $ 0.55
net income per share 2014assuming dilution | $ 0.33


part ii  item 8 20.
 pension benefit plans adoption of sfas 158 in september 2006 financial accounting standards board issued sfas 158 ( employer 2019s accounting for defined benefit pension postretirement plans amendment of fasb statements no.
 87 , 88  106 132 ( r ).
 sfas 158 required schlumberger to recognize funded status. difference between fair value of plan assets benefit obligation ) of defined benefit pension postretirement plans ( collectively 201cpostretirement benefit plans 201d ) in december 31, 2006 consolidated balance sheet corresponding adjustment to accumulated other comprehensive income  net of tax.
 adjustment accumulated comprehensive income adoption represents net unrecognized actuarial losses unrecognized prior service costs previously netted against schlumberger 2019s postretirement benefit plans 2019 funded status in consolidated balance sheet provisions of sfas 87 ( employers 2019 accounting for pensions ) sfas 106 ( employer 2019s accounting postretirement benefits other than pensions ).
 amounts recognized as net periodic postretirement cost consistent with schlumberger 2019s historical accounting policy for amortizing amounts.
 adoption of sfas 158 no effect on schlumberger 2019s consolidated statement of income for year ended december 31 , 2006 or prior period not affect schlumberger 2019s operating results in future periods.
 sfas 158 not effect on schlumberger 2019s consolidated balance sheet at december 31  sfas 158 required companies to measure fair value of plan assets benefit obligations as of date of fiscal year-end balance sheet.
 provision sfas 158 not applicable schlumberger uses measurement date of december 31 for postretirement benefit plans.
incremental effect of applying sfas 158 on consolidated balance sheet at december 31 , 2006 for schlumberger 2019s postretirement benefit plans presented in table : ( stated in millions ) prior to application of sfas 158 sfas 158 adoption adjustments application sfas 158.
 adoption 158 schlumberger 2019s total liabilities increased by approximately 2% ( 2 % ) stockholders 2019 equity decreased by approximately 3% ( 3 % ).
 impact on schlumberger 2019s total assets insignificant.
 united states defined benefit pension plans schlumberger and united states subsidiary sponsor several defined benefit pension plans cover all employees hired prior to october 1, 2004.
 benefits based on years of service compensation on career-average pay basis.
 funding policy qualified pension plans annually contribute amounts based upon factors including actuarial accrued liability  amounts deductible for income tax purposes  legal funding requirements available cash flow.
 contributions intended to provide for benefits earned to date and expected to be earned in future.

| prior to application of sfas 158 | sfas 158 adoption adjustments | after application of sfas 158
---------------------------------------- | -------------------------------- | ----------------------------- | -----------------------------
deferred taxes ( current )               | $ 191                            | $ -28 ( 28 )                  | $ 163
deferred taxes ( long-term )             | $ 186                            | $ 227                         | $ 413
other assets                             | $ 416                            | $ -243 ( 243 )                | $ 173
accounts payable and accrued liabilities | $ 3925                           | $ -77 ( 77 )                  | $ 3848
postretirement benefits                  | $ 713                            | $ 323                         | $ 1036
accumulated other comprehensive loss     | $ -879 ( 879 )                   | $ -290 ( 290 )                | $ -1169 ( 1169 )


entergy gulf states , inc.
 management's financial discussion analysis.
 volume/weather variance due to higher electric sales volume in service territory.
 billed usage increased 517 gwh in residential and commercial sectors.
 increase offset by decrease in industrial usage of 470 gwh due to loss of two large industrial customers to cogeneration.
 customers accounted for approximately 1% ( 1 % ) of entergy gulf states' net revenue in 2002.
 deferred fuel costs of $ 8. 9 million related to texas fuel reconciliation case written off $ 6. 5 million expense resulted from adjustment in deregulated asset plan percentage power uprate at river bend.
 increase in net wholesale revenue due to increase in sales volume to municipal and co- op customers affiliated systems related to entergy's generation resource planning.
 base rate decreases effective june 2002 and january 2003 in louisiana jurisdiction.
 january 2003 base rate decrease of $ 22. 1 million minimal impact on net income due to reduction in nuclear depreciation and decommissioning expenses with change in accounting to reflect assumed extension of river bend's useful life.
 2002 gain of $ 15. 2 million recognized for louisiana portion of 1988 nelson units 1 and 2 sale.
 entergy gulf states received approval from lpsc to discontinue applying amortization of gain against recoverable fuel recognition deferred gain in income.
 rate refund provisions caused decrease in net revenue due to additional provisions recorded in 2003 2002 potential rate actions.
 gross operating revenues fuel and purchased power expenses revenues increased due to increase of $ 440. 2 million in fuel cost recovery revenues higher fuel rates in louisiana and texas jurisdictions.
 fuel and purchased power expenses increased $ 471. 1 million due to increase in market prices of natural gas and purchased power.
income statement variances 2004 compared to 2003 operation maintenance expenses decreased due to 2022 voluntary severance program accruals $ 22. 5 million in 2003 ; 2022 decrease $ 4. 3 million nuclear material labor costs due to reduced staff 2004.

| ( in millions )
----------------------------- | ---------------
2002 net revenue              | $ 1130.7
volume/weather                | 17.8
fuel write-offs in 2002       | 15.3
net wholesale revenue         | 10.2
base rate decreases           | -23.3 ( 23.3 )
nisco gain recognized in 2002 | -15.2 ( 15.2 )
rate refund provisions        | -11.3 ( 11.3 )
other                         | -14.1 ( 14.1 )
2003 net revenue              | $ 1110.1


management 2019s discussion analysis table presents operating results of institutional client services segment.
.
 includes net revenues related to reinsurance of $ 1. 08 billion , $ 880 million $ 827 million for years ended december 2012 december 2011 december 2010 .
 2012 versus 2011.
 net revenues in institutional client services were $ 18. 12 billion for 2012 , 5% ( 5 % ) higher than 2011.
 net revenues in fixed income  currency commodities client execution were $ 9. 91 billion for 2012, 10% ( 10 % ) higher than 2011.
 results reflected strong net revenues in mortgages higher compared with 2011.
 net revenues in credit products interest rate products solid higher compared with 2011.
 increases offset by lower net revenues in commodities slightly lower net revenues in currencies.
 broad market concerns persisted during 2012  fixed income  currency commodities client execution operated in improved environment tighter credit spreads less challenging market-making conditions compared with 2011.
 net revenues in equities were $ 8. 21 billion for 2012  unchanged compared with 2011.
 net revenues in securities services higher compared with 2011  reflecting gain of approximately $ 500 million on sale of hedge fund administration business.
 equities client execution net revenues higher than 2011  reflecting higher results in cash products due to increased client activity.
 increases offset by lower commissions fees reflecting lower market volumes.
 during 2012 equities operated in environment by increase in global equity prices lower volatility levels.
net loss attributable to impact of changes in credit spreads on borrowings for fair value option elected was $ 714 million ( $ 433 million and $ 281 million related to fixed income  currency commodities client execution equities client execution ) for 2012  compared with net gain of $ 596 million ( $ 399 million and $ 197 million related to fixed income  currency commodities execution equities execution ) for 2011.
 during 2012  institutional client services operated in environment by continued broad market concerns and uncertainties positive developments improve market conditions.
 developments included central bank actions to ease monetary policy address funding risks for european financial institutions.
 u.
 economy posted stable improving economic data including favorable developments in unemployment and housing.
 improvements resulted in tighter credit spreads higher global equity prices lower volatility.
 concerns about outlook for global economy political uncertainty debate surrounding fiscal cliff resulted in client risk aversion lower activity levels.
 uncertainty over financial regulatory reform persisted.
 if concerns uncertainties continue long net revenues in fixed income  currency commodities client execution equities would likely be negatively impacted.
 operating expenses were $ 12. 48 billion for 2012 , 3% ( 3 % ) lower than 2011 due to lower brokerage  clearing  exchange distribution fees  lower impairment charges offset by higher net provisions for litigation and regulatory proceedings.
 pre-tax earnings were $ 5. 64 billion in 2012 , 27% ( 27 % ) higher than 2011.
 versus 2010.
 net revenues in institutional client services were $ 17. 28 billion for 2011 , 21% ( 21 % ) lower than 2010.
 net revenues in fixed income , currency and commodities client execution were $ 9.02 billion for 2011 , 34% ( 34 % ) lower than 2010.
 although activity levels during 2011 generally consistent with 2010 levels results solid during first quarter of 2011 , environment remainder of 2011 characterized by broad market concerns uncertainty  in volatile markets wider credit spreads  contributed to difficult market-making conditions led to reductions in risk by us clients.
 result of these conditions net revenues across franchise lower including significant declines in mortgages credit products , compared with 2010.
 54 goldman sachs 2012 annual report

in millions                                            | year ended december 2012 | year ended december 2011 | year ended december 2010
------------------------------------------------------ | ------------------------ | ------------------------ | ------------------------
fixed income currency and commodities client execution | $ 9914                   | $ 9018                   | $ 13707
equities client execution1                             | 3171                     | 3031                     | 3231
commissions and fees                                   | 3053                     | 3633                     | 3426
securities services                                    | 1986                     | 1598                     | 1432
total equities                                         | 8210                     | 8262                     | 8089
total net revenues                                     | 18124                    | 17280                    | 21796
operating expenses                                     | 12480                    | 12837                    | 14994
pre-tax earnings                                       | $ 5644                   | $ 4443                   | $ 6802


intangible assets subject to amortization  estimated aggregate amortization expense for each five succeeding fiscal years is : 2009 - $ 41. 1 million , 2010 - $ 27. 3 million , 2011 - $ 20. 9 million , 2012 - $ 17. 0 million  2013 - $ 12. 0 million.
 fees and expenses related to merger totaled $ 102. 6 million , principally of investment banking fees , legal fees stock compensation ( $ 39. 4 million discussed in note 10 )  reflected in 2007 results of operations.
 capitalized debt issuance costs as of merger date of $ 87. 4 million for merger-related financing reflected in other long- term assets in consolidated balance sheet.
 following represents unaudited pro forma results of company 2019s consolidated operations as if merger occurred on february 3 , 2007 and february 4 , 2006  after effect to certain adjustments  including depreciation and amortization of assets acquired based on estimated fair values changes in interest expense resulting from changes in consolidated debt ( in thousands ) : ( in thousands ) year ended february 1 , year ended february 2.
 pro forma information not indicative of company 2019s results of operations if acquisition occurred at beginning of periods presented not intended to projection of company 2019s future results of operations.
 subsequent to announcement of merger agreement company and directors  with other parties named in seven putative class actions filed in tennessee state courts alleging claims for breach of fiduciary duty proposed merger described under 201clegal proceedings 201d in note 8 below.
 3.
 strategic initiatives during 2006  company began implementing strategic initiatives related to historical inventory management and real estate strategies described below.
inventory management in november 2006 , company undertook initiative to discontinue historical inventory packaway model for all merchandise by end of fiscal 2007.
 under packaway model certain unsold inventory items ( primarily seasonal merchandise ) stored on-site returned to sales floor until items sold , damaged or discarded.
 through end-of-season other markdowns initiative resulted in elimination of seasonal , home products basic clothing packaway merchandise to allow for increased levels of newer  current-season merchandise.
 connection strategic change third quarter of 2006 company recorded reserve for lower of cost or market inventory

( in thousands ) | year endedfebruary 12008 | year endedfebruary 22007
---------------- | ------------------------ | ------------------------
revenue          | $ 9495246                | $ 9169822
net loss         | -57939 ( 57939 )         | ( 156188 )


american tower corporation subsidiaries notes consolidated financial statements 2014 as of december 31, 2006  company held ten interest rate swap agreements manage exposure variable rate interest obligations under amt opco spectrasite credit facilities four forward starting interest rate swap agreements manage exposure variability in cash flows forecasted interest payments connection securitization company designated as cash flow hedges.
 eight american tower swaps had aggregate notional amount $ 450. 0 million fixed rates between 4. 63% ( 4. 63 % ) and 4. 88% ( 4. 88 % ) two spectrasite swaps aggregate notional amount $ 100. 0 million fixed rate of 4. 95% ( 4. 95 % ).
 four forward starting interest rate swap agreements aggregate notional amount $ 900. 0 million  fixed rates between 4. 73% ( 4. 73 % ) and 5. 10% ( 5. 10 % ).
 december 31 , 2006 company held three interest rate swap instruments one interest rate cap instrument acquired in spectrasite , inc.
 merger in august 2005 not designated as cash flow hedges.
 three interest rate swaps  fair value $ 6. 7 million at date of acquisition aggregate notional amount $ 300. 0 million  fixed rate of 3. 88% ( 3. 88 % ).
 interest rate cap notional amount $ 175. 0 million  fixed rate of 7. 0% ( 7. 0 % )  expired in february 2006.
 of december 31 , 2006 other comprehensive income includes unrealized gains on short term available-for-sale securities of $ 10. 4 million unrealized gains related to interest rate swap agreements table above of $ 5. 7 million , net of tax.
 year ended december 31 , 2006 company recorded net unrealized gain of approximately $ 6. 5 million ( net of tax provision of approximately $ 3.5 million ) comprehensive loss for change in fair value of interest rate swaps cash flow hedges reclassified $ 0. 7 million ( net income tax benefit of $ 0. 2 million ) into results of operations during year ended december 31 , 2006.
 9.
 commitments contingencies lease obligations 2014the company leases land  office tower space under operating leases expire over various terms.
 leases contain renewal options with increases in lease payments upon exercise renewal option.
 escalation clauses in operating leases excluding tied to cpi inflation-based indices recognized on straight-line basis over non-cancelable term of lease.
 see note 1. future minimum rental payments under non-cancelable operating leases include payments for certain renewal periods at company 2019s option failure to renew could result in loss of tower site related revenues from tenant leases assured company will renew lease.
 payments in effect at december 31 , 2007 follows ( in thousands ) : year ending december 31.
 aggregate rent expense ( including effect straight-line rent expense ) under operating leases for years ended december 31 , 2007 , 2006 2005 approximated $ 246. 4 million , $ 237. 0 million $ 168. 7 million , respectively.

2008       | $ 217969
---------- | ---------
2009       | 215763
2010       | 208548
2011       | 199024
2012       | 190272
thereafter | 2451496
total      | $ 3483072


aeronautics business segment engaged in research design development manufacture integration sustainment support upgrade of advanced military aircraft  including combat air mobility aircraft  unmanned air vehicles related technologies.
 aeronautics 2019 major programs include f-35 lightning ii joint strike fighter c-130 hercules f-16 fighting falcon c-5m super galaxy f-22 raptor.
 aeronautics 2019 operating results included in millions ) :.
 2015 compared to 2014 aeronautics 2019 net sales 2015 increased $ 650 million  or 4% ( 4 % )  compared to 2014.
 increase attributable to higher net sales of $ 1. 4 billion for f-35 production contracts due to increased volume aircraft production sustainment activities approximately $ 150 million for c-5 program due to increased deliveries ( nine aircraft delivered 2015 compared to seven 2014 ).
 increases partially offset by lower net sales of $ 350 million for c-130 program due to fewer aircraft deliveries ( 21 aircraft delivered 2015 compared to 24 2014 ) lower sustainment activities aircraft contract mix ; approximately $ 200 million due to decreased volume lower risk retirements programs $ 195 million for f-16 program due to fewer deliveries ( 11 aircraft delivered 2015 compared to 17 2014 approximately $ 190 million for f-22 program decreased sustainment activities.
 aeronautics 2019 operating profit in 2015 increased $ 32 million  or 2% ( 2 % )  compared to 2014.
 operating profit increased by approximately $ 240 million for f-35 production contracts due to increased volume risk retirements approximately $ 40 million for c-5 program due to increased risk retirements.
 increases offset by lower operating profit of approximately $ 90 million for f-22 program due to lower risk retirements approximately $ 70 million for c-130 program lower net sales approximately $ 80 million due to decreased volume risk retirements on various programs.
adjustments not related to volume including net profit booking rate adjustments other approximately $ 100 million higher in 2015 compared to 2014.
 2014 aeronautics 2019 net sales increased $ 797 million  or 6% ( 6 % )  in 2014 2013.
 increase attributable to higher net sales of $ 790 million for f-35 production contracts due to increased volume sustainment activities ; $ 55 million for f-16 program due to increased deliveries ( 17 aircraft delivered in 2014 compared to 13 2013 ) partially offset by contract mix $ 45 million for f-22 program due to increased risk retirements.
 increases partially offset by lower net sales of $ 55 million for f-35 development contract due to decreased volume partially offset by absence in 2014 of downward revision to profit booking rate 2013 $ 40 million for c-130 program due to fewer deliveries ( 24 aircraft delivered in 2014 compared to 25 2013 ) decreased sustainment activities partially offset by contract mix.
 aeronautics 2019 operating profit increased $ 37 million  or 2% ( 2 % )  in 2014 compared to 2013.
 increase attributable to higher operating profit of $ 85 million for f-35 development contract due to absence 2014 of downward revision to profit booking rate 2013 $ 75 million for f-22 program due to increased risk retirements $ 50 million for c-130 program due to increased risk retirements contract mix partially offset by fewer deliveries $ 25 million for c-5 program due to absence in 2014 of downward revisions to profit booking rate 2013.
 increases partially offset by lower operating profit of $ 130 million for f-16 program due to decreased risk retirements partially offset by increased deliveries about $ 70 million for sustainment activities due to decreased risk retirements and volume.
 operating profit comparable for f-35 production contracts higher volume offset by lower risk retirements.
adjustments not related to volume including net profit booking rate adjustments other matters approximately $ 105 million lower 2014 compared 2013.

| 2015             | 2014             | 2013
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 15570          | $ 14920          | $ 14123
operating profit    | 1681             | 1649             | 1612
operating margins   | 10.8% ( 10.8 % ) | 11.1% ( 11.1 % ) | 11.4% ( 11.4 % )
backlog at year-end | $ 31800          | $ 27600          | $ 28000


item 1b.
 unresolved staff comments not applicable.
 item 2.
 properties global headquarters in chicago , illinois at 20 south wacker drive.
 description of key locations and facilities.
 location primary use owned/leased lease expiration approximate size ( in square feet ) 1 ) 20 south wacker drive chicago , illinois global headquarters office space leased 2032 ( 2 ) 512000 141 west jackson chicago illinois trading floor office space leased 2027 ( 3 ) 150000 333 s.
 lasalle chicago , illinois trading floor office space owned n/a 300000 550 west washington chicago illinois office space leased 2023 250000 one north end new york , new york trading floor office space leased 2028 ( 4 ) 240000.
 data center 3 chicagoland area business continuity co-location leased 2031 ( 5 ) 83000 bagmane tech park bangalore , office space leased 2020 ( 6 ) 72000 ( 1 ) size represents amount space leased or owned unless otherwise noted.
 2 initial lease expires in 2032 two consecutive options to extend term for five years each.
 ( 3 ) initial lease expires 2027 options to extend term expand premises.
 ( 4 ) initial lease expires 2028 options to extend term expand premises.
 2019 premises reduced to 225000 square feet.
 5 ) march 2016 company sold datacenter in chicago area for $ 130. 0 million.
 company leased back portion of property.
 6 ) initial lease expires 2020 option to extend term option to terminate early.
 item 3.
 legal proceedings see 201clegal and regulatory matters 201d in note 12.
contingencies consolidated financial statements beginning page 87 cme group 2019s legal proceedings disclosure incorporated herein reference.
 item 4.
 safety disclosures not applicable.

location                               | primary use                          | owned/leased | lease expiration | approximate size ( in square feet ) ( 1 )
-------------------------------------- | ------------------------------------ | ------------ | ---------------- | -----------------------------------------
20 south wacker drive chicago illinois | global headquarters and office space | leased       | 2032 ( 2 )       | 512000
141 west jacksonchicago illinois       | trading floor and office space       | leased       | 2027 ( 3 )       | 150000
333 s . lasallechicago illinois        | trading floor and office space       | owned        | n/a              | 300000
550 west washingtonchicago illinois    | office space                         | leased       | 2023             | 250000
one north endnew york new york         | trading floor and office space       | leased       | 2028 ( 4 )       | 240000
one new change london                  | office space                         | leased       | 2026             | 58000
data center 3chicagoland area          | business continuity and co-location  | leased       | 2031 ( 5 )       | 83000
bagmane tech park bangalore india      | office space                         | leased       | 2020 ( 6 )       | 72000


hold interest rate swap agreement to hedge benchmark interest rate of $ 375 million 5. 0% ( 5. 0 % ) senior unsecured notes due july 1 , 2014.
 effect swap to convert 5. 0% ( 5. 0 % ) fixed interest rate to variable interest rate based on three-month libor plus 2. 05% ( 2. 05 % ) ( 2. 42% ( 2. 42 % ) as of october 29 , 2011 ).
 term loan facility of $ 145 million bears interest at fluctuating rate for each period equal to libor rate corresponding with tenor interest period plus spread of 1. 25% ( 1. 25 % ) ( 1. 61% ( 1. 61 % ) as of october 29, 2011 ).
 if libor increases by 100 basis points annual interest expense increase by approximately $ 5 million.
 hypothetical change in interest rates not impact interest expense on $ 375 million of 3% ( 3 % ) fixed-rate debt  not hedged.
 as of october 30 , 2010  similar 100 basis point increase in libor would have resulted in increase approximately $ 4 million to annual interest expense.
 foreign currency exposure described in note 2i notes to consolidated financial statements item 8 annual report form 10-k regularly hedge non-u.
 dollar-based exposures by entering into forward foreign currency exchange contracts.
 terms contracts for periods matching duration of underlying exposure range from one month to twelve months.
 largest foreign currency exposure is euro because european operations have highest proportion of local currency denominated expenses.
 relative foreign currency exposures october 29, 2011 october 30 , 2010 10% ( 10 % ) unfavorable movement in foreign currency exchange rates over year would expose us to approximately $ 6 million in losses in earnings or cash flows.
market risk associated with derivative instruments results from currency exchange rates expected to offset market risk of underlying transactions  assets and liabilities hedged.
 counterparties to agreements relating to foreign exchange instruments consist of major international financial institutions with high credit ratings.
 based on credit ratings of counterparties as of october 29, 2011 we not believe significant risk of nonperformance by them.
 contract notional amounts of derivative financial instruments provide one measure of volume of transactions not represent amount our exposure to credit risk.
 amounts potentially subject to credit risk ( from possible inability of counterparties to meet terms of contracts ) are generally limited to amounts  if by counterparties 2019 obligations under contracts exceed our obligations to counterparties.
 following table illustrates effect 10% ( 10 % ) unfavorable or favorable movement in foreign currency exchange rates relative to.
 dollar on fair value of our forward exchange contracts as of october 29, 2011 and october 30 , 2010:.
 fair value of forward exchange contracts after 10% ( 10 % ) unfavorable movement in foreign currency exchange rates.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 $ 17859 $ 22062 fair value of forward exchange contracts after 10% ( 10 % ) favorable movement in foreign currency exchange rates.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 $ ( 13332 ) $ ( 7396 ) calculation assumes each exchange rate would change in same direction relative to u.
 dollar.
 direct effects of changes in exchange rates changes affect volume of sales or foreign currency sales price as competitors 2019 products become more or less attractive.
sensitivity analysis of effects changes foreign currency exchange rates not factor in potential change in sales levels or local currency selling prices.

| october 29 2011    | october 30 2010
----------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------------
fair value of forward exchange contracts asset                                                                                | $ 2472             | $ 7256
fair value of forward exchange contracts after a 10% ( 10 % ) unfavorable movement in foreign currency exchange rates asset   | $ 17859            | $ 22062
fair value of forward exchange contracts after a 10% ( 10 % ) favorable movement in foreign currency exchange rates liability | $ -13332 ( 13332 ) | $ -7396 ( 7396 )


item 7a.
 quantitative and qualitative disclosures about market risk ( amounts in millions ) normal course business exposed to market risks related to interest rates foreign currency rates certain balance sheet items.
 use derivative instruments established guidelines policies to manage these risks.
 derivative instruments in hedging activities viewed as risk management tools not used for trading or speculative purposes.
 interest rates exposure to market risk for changes in interest rates relates primarily to fair market value cash flows of debt obligations.
 majority of debt ( approximately 94% ( 94 % ) and 93% ( 93 % ) as of december 31, 2017 and 2016  ) bears interest at fixed rates.
 have debt with variable interest rates 10% ( 10 % ) increase or decrease in interest rates not material to interest expense or cash flows.
 fair market value of debt sensitive to changes in interest rates impact of 10% ( 10 % ) change in interest rates summarized below.
 increase/ ( decrease ) in fair market value as of december 31 , 10% ( 10 % ) increase in interest 10 % ) decrease in interest rates.
 used interest rate swaps for risk management purposes to manage exposure to changes in interest rates.
 any interest rate swaps outstanding as of december 31 , 2017.
 had $ 791. 0 of cash , cash equivalents marketable securities as of december 31, 2017 generally invest in conservative short-term bank deposits or securities.
 interest income from investments subject to domestic and foreign interest rate movements.
 during 2017 and 2016  had interest income of $ 19. 4 and $ 20. 1 , respectively.
 based on 2017 results 100 basis-point increase or decrease in interest rates would affect interest income by approximately $ 7. 9  assuming all cash cash equivalents marketable securities impacted same balances remain constant from year-end 2017 levels.
foreign currency rates subject to translation and transaction risks related to changes in foreign currency exchange rates.
 we report revenues and expenses in u. s.
 dollars changes in exchange rates may positively or negatively affect consolidated revenues and expenses ( expressed in.
 dollars ) from foreign operations.
 foreign currencies most impacted our results during 2017 included british pound sterling lesser brazilian real south african rand.
 based on 2017 exchange rates operating results if u. s.
 dollar to strengthen or weaken by 10% ( 10 % ) estimate operating income would decrease or increase approximately 4% ( 4 % ), assuming all currencies impacted same international revenue and expenses remain constant at 2017 levels.
 functional currency of foreign operations is generally respective local currency.
 assets and liabilities translated at exchange rates in effect at balance sheet date revenues and expenses translated at average exchange rates during period presented.
 resulting translation adjustments recorded as component of accumulated other comprehensive loss  net of tax  in stockholders 2019 equity section of consolidated balance sheets.
 foreign subsidiaries generally collect revenues and pay expenses in functional currency  mitigating transaction risk.
 certain subsidiaries may enter into transactions in currencies other than functional currency.
 assets and liabilities denominated in currencies other than functional currency susceptible to movements in foreign currency until final settlement.
 currency transaction gains or losses from transactions in currencies other than functional currency included in office and general expenses.
 regularly review foreign exchange exposures may material impact on business use foreign currency forward exchange contracts or other derivative financial instruments to hedge effects of potential adverse fluctuations in foreign currency exchange rates.
 do not enter into foreign exchange contracts or other derivatives for speculative purposes.

as of december 31, | increase/ ( decrease ) in fair market value 10% ( 10 % ) increasein interest rates | increase/ ( decrease ) in fair market value 10% ( 10 % ) decreasein interest rates
------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
2017               | $ -20.2 ( 20.2 )                                                                   | $ 20.6
2016               | -26.3 ( 26.3 )                                                                     | 26.9


entergy mississippi , inc.
 management's financial discussion and analysis sources of capital sources to meet capital requirements include : internally generated funds ; cash on hand ; debt or preferred stock issuances ; bank financing under new or existing facilities.
 entergy may refinance or redeem debt and preferred stock prior to maturity  extent market conditions interest dividend rates favorable.
 all debt and common and preferred stock issuances by require prior regulatory approval.
 preferred stock debt issuances subject to issuance tests in corporate charter , bond indenture , other agreements.
 entergy mississippi has sufficient capacity under these tests to meet foreseeable capital needs.
 has two separate credit facilities in aggregate amount $ 50 million renewed both facilities through may 2009.
 borrowings under credit facilities may be secured by security interest in accounts.
 no borrowings outstanding under either credit facility as of december 31 , 2008.
 entergy obtained short-term borrowing authorization from ferc may borrow through march 31 , 2010  up to aggregate amount of $ 175 million.
 see note 4 to financial statements for discussion of entergy's short-term borrowing limits.
 obtained order from ferc authorizing long-term securities issuances.
 current long-term authorization extends through june 30 , 2009.
's receivables from or payables to money pool were as follows as of december 31 for each of following years:.
 in may 2007 , $ 6. 6 million of entergy mississippi's receivable from money pool was replaced by note receivable from entergy new orleans.
 see note 4 to financial statements for description of money pool.
state local rate regulation rates entergy mississippi charges for electricity influence its financial position results of operations liquidity.
 entergy mississippi is regulated rates charged to customers determined in regulatory proceedings.
 governmental agency , mpsc , primarily responsible for approval of rates charged to customers.
 formula rate plan in march 2008  entergy mississippi made annual scheduled formula rate plan filing for 2007 test year with mpsc.
 filing showed $ 10. 1 million increase in annual electric revenues warranted.
 june 2008 , entergy mississippi reached settlement with mississippi public utilities staff result in $ 3. 8 million rate increase.
 in january 2009 mpsc rejected settlement left current rates in effect.
 entergy mississippi appealed mpsc's decision to mississippi supreme court.

2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
( $ 66044 )      | $ 20997          | $ 39573          | ( $ 84066 )