lockheed martin corporation management 2019s discussion analysis financial condition results operations december 31 , 2002 space systems 2019 operating results included : ( in millions ) 2002 2001 2000.
 net sales for space systems increased 8% ( 8 % ) in 2002 compared to 2001.
 increase sales 2002 resulted from higher volume in government space $ 370 million commercial space $ 180 million.
 government space  increases $ 470 million in government satellite programs $ 130 million in ground systems activities offset volume declines $ 175 million on government launch vehi- cles $ 55 million on strategic missile programs.
 increase in commercial space sales attributable to increase launch vehicle activities nine commercial launches 2002 compared to six 2001.
 net sales segment decreased 7% ( 7 % ) in 2001 pared 2000.
 decrease sales 2001 resulted from volume declines in commercial space $ 560 million offset increases in government space $ 60 million.
 commercial space  sales declined due to volume reductions $ 480 million in commercial launch vehicle activities $ 80 million in satellite programs.
 six launches in 2001 compared to 14 launches 2000.
 increase in gov- ernment space resulted from combined increase $ 230 mil- lion related to higher volume government satellite programs ground systems activities.
 increases partially offset by $ 110 million decrease volume declines in government launch vehicle activity due to program maturities $ 50 million due to absence 2001 of favorable adjustments on titan iv pro- gram 2000.
 operating profit segment increased 23% ( 23 % ) in 2002 compared to 2001 mainly driven by commercial space business.
 reduced losses in commercial space 2002 resulted in increased operating profit $ 90 million compared to 2001.
 commercial satellite manufacturing losses declined $ 100 million in 2002 operating performance improved satellite deliveries increased.
 first quarter of 2001 $ 40 million loss provision recorded on certain commercial satellite manufacturing contracts.
to industry-wide oversupply deterioration of pricing in commercial launch market financial results on commercial launch vehicles challenging.
 2002  trend led to decline in operating profit of $ 10 million on commercial launch vehicles compared to 2001.
 decrease due to lower profitability of $ 55 mil- lion on three additional launches current year addi tional charges of $ 60 million ( net favorable contract adjustment $ 20 million ) for market pricing pressures adverse effect of $ 35 million adjustment for commercial launch vehicle contract settlement costs.
 2001 results included charges for market pricing pressures reduced year 2019s operating profit by $ 145 million.
 $ 10 million decrease in government space 2019s operating profit due to reduced volume on government launch vehicles strategic missile programs operating profit by $ 80 million partially offset by increases $ 40 million in government satellite programs $ 30 million in ground systems activities.
 operating profit for segment increased by 4% ( 4 % ) in 2001 compared to 2000.
 operating profit increased 2001 due to $ 35 million increase in government space offset by higher year-over-year losses of $ 20 million in commercial space.
 government space operating profit increased due to impact higher volume improved performance in ground systems government satellite programs.
 year- to-year comparison operating profit not affected by $ 50 million favorable titan iv adjustment in 2000 due to $ 55 million charge related to conservative assessment of government launch vehi- cle programs fourth quarter of 2000.
 commercial space  decreased operating profit of $ 15 mil- lion on launch vehicles offset lower losses on satel- lite manufacturing activities.
 commercial launch vehicle operating results included $ 60 million in higher charges for market pricing pressures compared to 2000.
 negative adjustments partially offset by $ 50 million of favorable contract adjustments on certain launch vehicle con- tracts.
commercial satellite manufacturing losses decreased slightly from 2000 included adverse impact of $ 40 million loss provision recorded first quarter 2001 for satellite contracts related to schedule technical issues.

( in millions )  | 2002   | 2001   | 2000
---------------- | ------ | ------ | ------
net sales        | $ 7384 | $ 6836 | $ 7339
operating profit | 443    | 360    | 345


citigroup 2019s repurchases primarily from government sponsored entities.
 specific representations and warranties company depend on nature transaction requirements buyer.
 market conditions credit-ratings agency requirements may affect representations warranties other provisions company may agree to in loan sales.
 in breach of representations and warranties , company may be required to repurchase mortgage loans ( generally at unpaid principal balance plus accrued interest ) with identified defects or indemnify ( 201cmake-whole 201d ) investor or insurer.
 company recorded repurchase reserve included in other liabilities in consolidated balance sheet.
 in case of repurchase , company will bear subsequent credit loss on mortgage loans.
 company 2019s representations and warranties generally not subject to stated limits in amount or time of coverage.
 contractual liability arises only when representations and warranties breached only when loss results from breach.
 in case of repurchase , loan typically considered a credit- impaired loan accounted for under sop 03-3 , 201caccounting for certain loans debt securities , acquired in transfer 201d ( now incorporated into asc 310-30 , receivables 2014loans debt securities acquired with deteriorated credit quality ).
 these repurchases not material impact on nonperforming loan statistics, credit-impaired purchased sop 03-3 loans not included in nonaccrual loans.
 company estimates exposure to losses from obligation to repurchase previously sold loans based on probability of repurchase or make-whole estimated loss given repurchase or make-whole.
 estimate calculated separately by sales vintage ( i. e., year loans were sold ) based on combination historical trends forecasted repurchases and losses considering : ( 1 ) trends in requests by investors for loan documentation packages reviewed ; 2 ) trends in recent repurchases and make-wholes ; 3 ) historical percentage of claims made percentage of loan documentation package requests ; ( 4 ) success rate in appealing claims ; 5 ) inventory of unresolved claims ; ( 6 ) estimated loss given repurchase or make-whole , including loss of principal , accrued interest  foreclosure costs.
 company not change estimation methodology by counterparty , but historical experience and trends considered when evaluating overall reserve.
 request for loan documentation packages early indicator of potential claim.
 during 2009 , loan documentation package requests and level of outstanding claims increased.
 in loss severity estimates increased during 2009 due to impact of macroeconomic factors recent experience.
 these factors contributed to $ 493 million change in estimate for reserve in 2009.
 repurchase reserve calculated by sales vintage.
 majority of repurchases in 2009 from 2006 and 2007 sales vintages  represent vintages with largest loss- given-repurchase.
 insignificant percentage of 2009 repurchases from vintages prior to 2006  expected to decrease  because those vintages later in credit cycle.
 early in credit cycle company experienced improved repurchase and loss-given-repurchase statistics from 2008 and 2009 vintages.
 in case of repurchase of credit-impaired sop 03-3 loan ( now incorporated into asc 310-30 )  difference between loan 2019s fair value and unpaid principal balance at time of repurchase recorded as utilization of repurchase reserve.
 payments to make investor whole also treated as utilizations charged directly against reserve.
provision for estimated probable losses from loan sales recorded as adjustment to gain on sale  included in other revenue in consolidated statement of income.
 liability for representations and warranties estimated when company sells loans updated quarterly.
 subsequent adjustment to provision recorded in other revenue in consolidated statement of income.
 activity in repurchase reserve for years ended december 31 , 2009 and 2008 is as follows:.
 goodwill goodwill represents acquired company 2019s acquisition cost over fair value of net tangible and intangible assets acquired.
 goodwill subject to annual impairment tests  goodwill allocated to company 2019s reporting units impairment exist if carrying value of reporting unit exceeds estimated fair value.
 on business dispositions , goodwill allocated to business disposed of based on ratio of fair value of business disposed of to fair value of reporting unit.
 intangible assets intangible assets 2014including core deposit intangibles , present value of future profits  purchased credit card relationships  other customer relationships  other intangible assets  excluding msrs 2014are amortized over estimated useful lives.
 intangible assets indefinite useful lives , primarily certain asset management contracts and trade names  not amortized and subject to annual impairment tests.
 impairment exists if carrying value of indefinite-lived intangible asset exceeds fair value.
 for other intangible assets subject to amortization  impairment recognized if carrying amount not recoverable and exceeds fair value of intangible asset.
other assets other liabilities assets include  loans held-for-sale  deferred tax assets  equity-method investments , interest and fees receivable , premises equipment  end-user derivatives in net receivable position  repossessed assets , other receivables.

in millions of dollars        | 2009         | 2008
----------------------------- | ------------ | --------
balance beginning of the year | $ 75         | $ 2
additions for new sales       | 33           | 23
change in estimate            | 493          | 59
utilizations                  | -119 ( 119 ) | -9 ( 9 )
balance end of the year       | $ 482        | $ 75


goldman sachs group  inc.
 subsidiaries management 2019s discussion analysis in table : 2030 deduction for goodwill identifiable intangible assets net of deferred tax liabilities included goodwill of $ 3. 67 billion december 2017 and december 2016 identifiable intangible assets of $ 373 million and $ 429 million as of december 2017 and 2016 net of deferred tax liabilities of $ 704 million and $ 1. 08 billion as december 2017 december 2016.
 2030 deduction for investments in nonconsolidated financial institutions represents investments in capital nonconsolidated financial institutions exceed thresholds.
 decrease from december 2016 to december 2017 reflects reductions in fund investments.
 2030 deduction for investments in covered funds represents aggregate investments in applicable covered funds excluding investments subject to extended conformance period.
 deduction not subject to transition period.
 see 201cbusiness 2014 regulation 201d part i  item 1 of form 10-k for information about volcker rule.
 2030 other adjustments within cet1 include overfunded portion of defined benefit pension plan obligation net of deferred tax liabilities disallowed deferred tax assets credit valuation adjustments on derivative liabilities debt valuation adjustments required credit risk-based deductions.
 2030 qualifying subordinated debt is issued by group inc.
 with original maturity of five years or greater.
 outstanding amount of subordinated debt qualifying for tier 2 capital reduced upon reaching remaining maturity of five years.
 see note 16 to consolidated financial statements for information about subordinated debt.
 see note 20 to consolidated financial statements for information about transitional capital ratios represent ratios applicable as of december 2017 and december 2016.
 supplementary leverage ratio capital framework includes supplementary leverage ratio requirement for advanced approach banking organizations.
 under amendments to capital framework.
 federal bank regulatory agencies approved final rule implements supplementary leverage ratio aligned with definition of leverage established by basel committee.
 supplementary leverage ratio compares tier 1 capital to measure of leverage exposure of daily average total assets for quarter and certain off-balance-sheet exposures less certain balance sheet deductions.
 capital framework requires minimum supplementary leverage ratio of 5. 0% ( 5. 0 % ) ( of minimum requirement of 3. 0% ( 3. 0 % ) and 2. 0% ( 2. 0 % ) buffer ) for u. s.
 bhcs g-sibs  effective on january 1 , 2018.
 table below presents supplementary leverage ratio  calculated on fully phased-in basis.
 for three months ended or as of december $ in millions 2017 2016.
 table off-balance-sheet exposures consists of derivatives , securities financing transactions  commitments and guarantees.
 subsidiary capital requirements subsidiaries including gs bank usa and broker-dealer subsidiaries subject to separate regulation and capital requirements of jurisdictions in they operate.
 gs bank usa.
 subject to regulatory capital requirements calculated in same manner as applicable to bhcs calculates capital ratios in accordance with risk-based capital and leverage requirements applicable to state member banks based on capital framework.
 see note 20 to consolidated financial statements for further information about capital framework to gs bank usa including gs bank usa 2019s capital ratios and required minimum ratios.
 goldman sachs 2017 form 10-k 73

$ in millions                         | for the three months ended or as of december 2017 | for the three months ended or as of december 2016
------------------------------------- | ------------------------------------------------- | -------------------------------------------------
tier 1 capital                        | $ 78227                                           | $ 81808
average total assets                  | $ 937424                                          | $ 883515
deductions from tier 1 capital        | -4572 ( 4572 )                                    | -4897 ( 4897 )
average adjusted total assets         | 932852                                            | 878618
off-balance-sheetexposures            | 408164                                            | 391555
total supplementary leverage exposure | $ 1341016                                         | $ 1270173
supplementary leverage ratio          | 5.8% ( 5.8 % )                                    | 6.4% ( 6.4 % )


market conditions affecting trust asset performance future discount rates based on average yields of high quality corporate bonds decisions regarding certain elective provisions of project make total.
 foreign benefit plan contributions in 2014 of approximately $ 57 million.
 actual 2014 contributions could be different from projections influenced by decision to undertake discretionary funding of benefit trusts versus other competing investment priorities future changes in government requirements trust asset performance renewals of union contracts higher-than-expected health care claims cost experience.
 measure cash flow as net cash provided by operating activities reduced by expenditures for property additions.
 use non-gaap financial measure of cash flow to focus management investors on cash available for debt repayment dividend distributions acquisition opportunities share repurchases.
 cash flow metric reconciled to most comparable gaap measure :.
 year-over-year change ( 4. 5 ) % ( % ) 22. 4% ( 22. 4 % ) decrease in cash flow in 2013 compared to 2012 due to higher capital expenditures.
 increase in cash flow in 2012 compared to 2011 driven by improved performance in working capital from one-time benefit from pringles acquisition  changes in level of capital expenditures during three-year period.
 investing activities net cash used in investing activities for 2013 amounted to $ 641 million  decrease of $ 2604 million compared with 2012 primarily attributable to $ 2668 million acquisition of pringles in 2012.
 capital spending in 2013 included investments in supply chain infrastructure support capacity requirements in certain markets.
 continued investment in information technology infrastructure related to reimplementation and upgrade of sap platform.
 net cash used in investing activities of $ 3245 million in 2012 increased by $ 2658 million compared with 2011 due to acquisition of pringles in 2012.
cash paid for additions to properties as percentage of net sales increased to 4. 3% ( 4. 3 % ) in 2013  from 3. 8% ( 3. 8 % ) in 2012 decrease from 4. 5% ( 4. 5 % ) in financing activities net cash used by financing activities was $ 1141 million for 2013 compared to $ 1317 million for 2012 and $ 957 million for 2011.
 increase in cash from financing activities in 2012 primarily due to issuance of debt related to acquisition of pringles.
 total debt was $ 7. 4 billion at year-end 2013 and $ 7. 9 billion at year-end 2012.
 in february 2013 issued $ 250 million of two-year floating-rate.
 dollar notes  and $ 400 million of ten-year 2. 75% ( 2. 75 % ) u.
 dollar notes  in aggregate net proceeds after debt discount of $ 645 million.
 proceeds from used for general corporate purposes including repayment of $ 750 million aggregate principal amount of 4. 25% ( 4. 25 % ) u.
 dollar notes due march 2013.
 in may 2012 issued $ 350 million of three-year 1. 125% ( 1. 125 % ) u.
 dollar notes  $ 400 million of five-year 1. 75% ( 1. 75 % ) u.
 dollar notes and $ 700 million of ten-year 3. 125% ( 3. 125 % ) u.
 dollar notes  in aggregate net proceeds after debt discount of $ 1. 442 billion.
 proceeds notes used for general corporate purposes including financing portion of acquisition of pringles.
 in may 2012 issued.
 $ 300 million of two-year 2. 10% ( 2. 10 % ) fixed rate canadian dollar notes  proceeds for general corporate purposes included repayment of intercompany debt.
repayment resulted in cash for portion acquisition of pringles.
 december 2012 repaid $ 750 million five-year 5. 125% ( 5. 125 % ).
 dollar notes at maturity with commercial paper.
 april 2011 repaid $ 945 million ten-year 6. 60% ( 6. 60 % ).
 dollar notes at maturity with commercial paper.
 may 2011 issued $ 400 million of seven-year 3. 25% ( 3. 25 % ) fixed rate.
 dollar notes using proceeds of $ 397 million for general corporate purposes repayment of commercial paper.
 november 2011 issued $ 500 million of five-year 1. 875% ( 1. 875 % ) fixed rate.
.
 dollar notes using proceeds of $ 498 million for general corporate purposes repayment of commercial paper.

( dollars in millions )                   | 2013             | 2012             | 2011
----------------------------------------- | ---------------- | ---------------- | ------------
net cash provided by operating activities | $ 1807           | $ 1758           | $ 1595
additions to properties                   | -637 ( 637 )     | -533 ( 533 )     | -594 ( 594 )
cash flow                                 | $ 1170           | $ 1225           | $ 1001
year-over-year change                     | ( 4.5 ) % (  % ) | 22.4% ( 22.4 % ) |


in 2016 , arconic recognized discrete income tax benefits related to release of valuation allowances on certain net deferred tax assets in russia and canada of $ 19 and $ 20 respectively.
 after weighing evidence management determined more likely than not net income tax benefits associated with underlying deferred tax assets would be realizable based on historic cumulative income and projected taxable income.
 arconic recorded additional valuation allowances in australia of $ 93 related to separation transaction spain of $ 163 related to tax law change luxembourg of $ 280 related to separation transaction tax law change.
 these valuation allowances offset current year changes in deferred tax asset balances of each jurisdiction in no net impact to tax expense.
 need for valuation allowance reassessed continuous basis in future periods by each jurisdiction allowances may increase or decrease based on changes in facts and circumstances.
 in 2015  arconic recognized additional $ 141 discrete income tax charge for valuation allowances on certain deferred tax assets in iceland and suriname.
 amount $ 85 valuation allowance established on full value of deferred tax assets in suriname related mostly to employee benefits and tax loss carryforwards.
 deferred tax assets have expiration period from 2016 to 2022 ( as of december 31 , 2015 ).
 remaining $ 56 charge relates to valuation allowance established on portion of deferred tax assets recorded in iceland.
 these deferred tax assets have expiration period from 2017 to 2023.
 after weighing all positive and negative evidence management determined no longer more likely than not that arconic will realize tax benefit of either these deferred tax assets.
 mainly driven by decline in outlook of primary metals business with prior year cumulative losses and short expiration period.
in december 2011 , one arconic 2019s former subsidiaries in brazil applied for tax holiday related to expanded mining and refining operations.
 during 2013  application amended and re-filed similar application filed for another arconic 2019s former subsidiaries in brazil.
 deadline for brazilian government to deny application was july 11 , 2014.
 arconic not receive notice applications denied tax holiday took effect automatically on july 12 , 2014.
 result tax rate applicable to qualified holiday income for subsidiaries decreased significantly ( from 34% ( 34 % ) to 15. 25% (. 25 % ) ) resulting in future cash tax savings over 10-year holiday period ( retroactively effective as of january 1 , 2013 ).
 portion of one of subsidiaries net deferred tax assets that reverses within holiday period remeasured at new tax rate ( net deferred tax asset of other subsidiary not remeasured could still be utilized against subsidiary 2019s future earnings not subject to tax holiday ).
 remeasurement resulted in decrease to subsidiary 2019s net deferred tax assets and noncash charge to earnings of $ 52 ( $ 31 after noncontrolling interests ).
 following table details changes in valuation allowance:.
 cumulative amount of arconic 2019s foreign undistributed net earnings for which no deferred taxes provided was approximately $ 450 at december 31 , 2016.
 arconic has commitments and obligations related to company 2019s growth strategy in foreign jurisdictions.
 management has no plans to distribute such earnings in foreseeable future determined not practicable to determine related deferred tax liability.

december 31,                                   | 2016         | 2015       | 2014
---------------------------------------------- | ------------ | ---------- | ----------
balance at beginning of year                   | $ 1291       | $ 1151     | $ 1252
increase to allowance                          | 772          | 180        | 102
release of allowance                           | -209 ( 209 ) | -42 ( 42 ) | -70 ( 70 )
acquisitions and divestitures ( f )            | -1 ( 1 )     | 29         | -36 ( 36 )
tax apportionment tax rate and tax law changes | 106          | -15 ( 15 ) | -67 ( 67 )
foreign currency translation                   | -19 ( 19 )   | -12 ( 12 ) | -30 ( 30 )
balance at end of year                         | $ 1940       | $ 1291     | $ 1151


item 2.
 properties employ variety of assets in management operation rail business.
 our rail network covers 23 states western two-thirds of u. s.
 rail network includes 31838 route miles.
 own 26009 miles operate on remainder pursuant to trackage rights or leases.
 following table describes track miles at december 31 , 2013 2012.
 2013 2012.
 headquarters building maintain headquarters in omaha , nebraska.
 facility has 1. 2 million square feet space for approximately 4000 employees subject to financing arrangement.
 harriman dispatching center harriman dispatching center ( hdc ) located in omaha, nebraska primary dispatching facility.
 linked to regional dispatching locomotive management facilities at various locations along

| 2013  | 2012
--------------------------------------- | ----- | -----
route                                   | 31838 | 31868
other main line                         | 6766  | 6715
passing lines and turnouts              | 3167  | 3124
switching and classification yard lines | 9090  | 9046
total miles                             | 50861 | 50753


corporate/other includes unallocated costs of global staff functions including finance  risk human resources legal compliance ) other corporate expenses unallocated global operations technology expenses income taxes corporate treasury  north america legacy consumer loan portfolios  other legacy assets discontinued operations for additional information on corporate/other see 201ccitigroup segments 201d above.
 at december 31 , 2018  corporate/other had $ 91 billion in assets increase of 17% ( 17 % ) from prior year.
 in millions of dollars 2018 2017 2016 % ( % ) change 2018 vs.
 2017 ( % change vs.
 2016.
 2018.
 2017 net income was $ 107 million in 2018 compared to net loss of $ 19. 7 billion prior year driven by $ 19. 8 billion one-time  non-cash charge recorded in tax line in 2017 due to impact tax reform.
 results 2018 included one-time benefit of $ 94 million in tax line related to tax reform.
 for additional information see 201csignificant accounting policies significant estimates 2014income taxes 201d below.
 excluding one-time impact of tax reform in 2018 and 2017 net income decreased 92% ( 92 % ) reflecting lower revenues offset by lower expenses lower cost of credit tax benefits related to reorganization of non-u.
 subsidiaries.
 tax benefits offset by release of foreign currency translation adjustment ( cta ) from aoci to earnings for additional information on cta release see note 19 to consolidated financial statements ).
 revenues decreased 33% ( 33 % ) driven by wind-down of legacy assets.
 expenses decreased 40% ( 40 % ) primarily driven by wind-down of legacy assets lower infrastructure costs lower legal expenses.
provisions decreased $ 27 million to net benefit $ 202 million due to lower net credit losses offset by lower net loan loss reserve release.
 net credit losses declined 86% ( 86 % ) to $ 21 million reflecting impact of ongoing divestiture activity continued wind-down of north america mortgage portfolio.
 net reserve release declined by $ 96 million to $ 221 million reflected continued wind-down of legacy north america mortgage portfolio and divestitures.
 2017 vs.
 2016 net loss was $ 19. 7 billion  compared to net income $ 521 million prior year driven by one-time impact of tax reform.
 excluding tax reform net income declined 69% ( 69 % ) to $ 168 million reflecting lower revenues offset by lower expenses lower cost of credit.
 revenues declined 40% ( 40 % )  reflecting continued wind-down of legacy assets absence of gains related to debt buybacks in 2016.
 revenues included $ 750 million in gains on asset sales in first quarter of 2017 offset $ 300 million charge related to exit of citi 2019s.
 mortgage servicing operations quarter.
 expenses declined 24% ( 24 % ) reflecting wind-down of legacy assets and lower legal expenses offset by approximately $ 100 million in episodic expenses related to exit of.
 mortgage servicing operations.
 included in expenses is approximately $ 255 million provision for remediation costs related to card act matter in 2017.
 provisions decreased $ 244 million to net benefit of $ 175 million due to lower net credit losses and lower provision for benefits and claims offset by lower net loan loss reserve release.
 net credit losses declined 66% ( 66 % ) reflecting impact of ongoing divestiture activity continued wind-down of north america mortgage portfolio.
decline in provision for benefits claims primarily due to lower insurance activity.
 net reserve release declined $ 147 million  reflected continued wind-down of legacy north america mortgage portfolio divestitures.

in millions of dollars                                             | 2018           | 2017               | 2016         | % (  % ) change2018 vs . 2017 | % (  % ) change2017 vs . 2016
------------------------------------------------------------------ | -------------- | ------------------ | ------------ | ----------------------------- | -----------------------------
net interest revenue                                               | $ 2254         | $ 2000             | $ 3045       | 13% ( 13 % )                  | ( 34 ) % (  % )
non-interest revenue                                               | -171 ( 171 )   | 1132               | 2188         | nm                            | -48 ( 48 )
total revenues net of interest expense                             | $ 2083         | $ 3132             | $ 5233       | ( 33 ) % (  % )               | ( 40 ) % (  % )
total operating expenses                                           | $ 2272         | $ 3814             | $ 5042       | ( 40 ) % (  % )               | ( 24 ) % (  % )
net credit losses                                                  | $ 21           | $ 149              | $ 435        | ( 86 ) % (  % )               | ( 66 ) % (  % )
credit reserve build ( release )                                   | -218 ( 218 )   | -317 ( 317 )       | -456 ( 456 ) | 31                            | 30
provision ( release ) for unfunded lending commitments             | -3 ( 3 )       | 2014               | -8 ( 8 )     | 2014                          | 100
provision for benefits and claims                                  | -2 ( 2 )       | -7 ( 7 )           | 98           | 71                            | nm
provisions for credit losses and for benefits and claims           | $ -202 ( 202 ) | $ -175 ( 175 )     | $ 69         | -15 ( 15 )                    | nm
income ( loss ) from continuing operations before taxes            | $ 13           | $ -507 ( 507 )     | $ 122        | nm                            | nm
income taxes ( benefits )                                          | -113 ( 113 )   | 19064              | -455 ( 455 ) | nm                            | nm
income ( loss ) from continuing operations                         | $ 126          | $ -19571 ( 19571 ) | $ 577        | nm                            | nm
income ( loss ) from discontinued operations net of taxes          | -8 ( 8 )       | -111 ( 111 )       | -58 ( 58 )   | 93                            | -91 ( 91 )
net income ( loss ) before attribution of noncontrolling interests | $ 118          | $ -19682 ( 19682 ) | $ 519        | nm                            | nm
noncontrolling interests                                           | 11             | -6 ( 6 )           | -2 ( 2 )     | nm                            | nm
net income ( loss )                                                | $ 107          | $ -19676 ( 19676 ) | $ 521        | nm                            | nm


entergy louisiana , inc.
 management's financial discussion analysis gross operating revenues , fuel purchased power expenses  other regulatory credits operating revenues increased due to : 2022 increase of $ 98. 0 million in fuel cost recovery revenues due to higher fuel rates ; 2022 increase due to volume/weather ,.
 increase partially offset by : 2022 decrease of $ 31. 9 million in price applied to unbilled sales  2022 decrease of $ 12. 2 million in rate refund provisions 2022 decrease of $ 5. 2 million in gross wholesale revenue due to decreased sales to affiliated systems.
 fuel purchased power expenses increased due to : 2022 increase in recovery from customers of deferred fuel costs ; 2022 increase in market price of natural gas.
 other regulatory credits increased due to : 2022 deferral in 2004 of $ 14. 3 million of capacity charges related to generation resource planning lpsc ; 2022 amortization in 2003 of $ 11. 8 million of deferred capacity charges  ; 2022 deferral in 2004 of $ 11. 4 million related to entergy's voluntary severance program  accordance with proposed stipulation with lpsc staff.
 2003 compared to 2002 net revenue  entergy louisiana's measure of gross margin consists of operating revenues net of fuel , fuel-related  purchased power expenses 2 ) other regulatory charges ( credits ).
 following analysis of change in net revenue comparing 2003 to 2002.
 deferred fuel cost revisions variance resulted from revised unbilled sales pricing estimate in december 2002 further revision in first quarter of 2003 to align fuel component pricing with expected recoverable fuel costs.
 asset retirement obligation variance due to implementation of sfas 143 , "accounting for asset retirement obligations" adopted in january 2003.
see "critical accounting estimates" for details on sfas 143.
 increase offset by decommissioning expense no effect on net income.
 volume variance due to decrease in electricity usage in service territory.
 usage decreased 1868 gwh industrial sector including loss of large industrial customer to cogeneration.

| ( in millions )
---------------------------- | ---------------
2002 net revenue             | $ 922.9
deferred fuel cost revisions | 59.1
asset retirement obligation  | 8.2
volume                       | -16.2 ( 16.2 )
vidalia settlement           | -9.2 ( 9.2 )
other                        | 8.9
2003 net revenue             | $ 973.7


as of september 24 , 2011 , total gross unrecognized tax benefits was $ 1. 4 billion , $ 563 million  if recognized  would affect company 2019s effective tax rate.
 as of september 25 , 2010 , total gross unrecognized tax benefits was $ 943 million  $ 404 million , if recognized  would affect company 2019s effective tax rate.
 aggregate changes in balance of gross unrecognized tax benefits , excludes interest and penalties  for three years ended september 24 , 2011  is as follows ( in millions ) :.
 company includes interest and penalties related to unrecognized tax benefits within provision for income taxes.
 as of september 24, 2011 and september 25 , 2010  total gross interest and penalties accrued was $ 261 million and $ 247 million  classified as non-current liabilities in consolidated balance sheets.
 tax company recognized interest expense in 2011 and 2009 of $ 14 million and $ 64 million  in 2010 company recognized interest benefit of $ 43 million.
 company subject to taxation and files income tax returns in u. s.
 federal jurisdiction and in many state and foreign jurisdictions.
 for.
 federal income tax purposes all years prior to 2004 are closed.
 internal revenue service ( 201d ) completed field audit of company 2019s federal income tax returns for years 2004 through 2006 and proposed certain adjustments.
 company contested certain these adjustments through irs appeals office.
 irs currently examining years 2007 through 2009.
 company subject to audits by state , local and foreign tax authorities.
 in major states and major foreign jurisdictions years subsequent to 1988 and 2001  remain open and could be subject to examination by taxing authorities.
 management believes adequate provision has made for adjustments from tax examinations.
, outcome of tax audits cannot be predicted with certainty.
 if issues addressed in company 2019s tax audits resolved not consistent with management 2019s expectations , company could be required to adjust provision for income tax in period resolution occurs.
 timing of resolution and/or closure of audits not certain, company does not believe possible unrecognized tax benefits change in next 12 months.
 note 6 2013 shareholders 2019 equity and share-based compensation preferred stock company has five million shares of authorized preferred stock , none is issued or outstanding.
 under terms company 2019s restated articles of incorporation  board of directors authorized to determine or alter rights  preferences  privileges restrictions of company 2019s authorized but unissued shares of preferred stock.
 comprehensive income comprehensive income consists of two components , net income and other comprehensive income.
 other comprehensive income refers to revenue , expenses  gains losses under gaap recorded as element

| 2011       | 2010         | 2009
---------------------------------------------------------------- | ---------- | ------------ | ----------
beginning balance                                                | $ 943      | 971          | $ 506
increases related to tax positions taken during a prior year     | 49         | 61           | 341
decreases related to tax positions taken during a prior year     | -39 ( 39 ) | -224 ( 224 ) | -24 ( 24 )
increases related to tax positions taken during the current year | 425        | 240          | 151
decreases related to settlements with taxing authorities         | 0          | -102 ( 102 ) | 0
decreases related to expiration of statute of limitations        | -3 ( 3 )   | -3 ( 3 )     | -3 ( 3 )
ending balance                                                   | $ 1375     | $ 943        | $ 971


contractual maturities of held-to-maturity securities as of january 30 , 2009 excess of three years $ 31. 4 million at cost and $ 28. 9 million at fair value.
 successor year ended january 30 , 2009 period ended february 1 , 2008 predecessor period ended july 6, 2007 year ended february 2 , 2007 gross realized gains and losses on sales of available-for-sale securities not material.
 cost of securities sold based upon specific identification method.
 merchandise inventories stated at lower of cost or market determined using retail last-in, first-out ( 201d ) method.
 under company 2019s retail inventory method ( 201d ) calculation of gross profit valuation of inventories at cost computed by applying calculated cost-to-retail inventory ratio to retail value of sales at department level.
 costs associated with warehousing distribution capitalized into inventory.
 excess of current cost over lifo cost approximately $ 50. 0 million at january 30 , 2009 $ 6. 1 million at february 1 , 2008.
 current cost determined using retail first-in , first-out method.
 company 2019s lifo reserves adjusted to zero at july 6 , 2007 merger.
 successor recorded lifo provisions of $ 43. 9 million and $ 6. 1 million during 2008 and 2007 .
 predecessor recorded lifo credit of $ 1. 5 million in 2006.
 2008 increased commodity cost pressures related to food and pet products driven by fruit and vegetable prices rising freight costs.
 increases in petroleum  resin metals pulp other raw material commodity driven costs resulted in multiple product cost increases.
company intends to address commodity cost increases through negotiations with vendors by increasing retail prices as necessary.
 quarterly basis , company estimates annual impact of commodity cost fluctuations based upon best available information at.
 store pre-opening costs pre-opening costs related to new store openings construction periods expensed as incurred.
 property and equipment property equipment recorded at cost.
 company provides for depreciation and amortization on straight-line basis over following estimated useful lives:.
 improvements of leased properties amortized over shorter of life of applicable lease term or estimated useful life of asset.

land improvements                | 20
-------------------------------- | -----
buildings                        | 39-40
furniture fixtures and equipment | 3-10


results operations for 2016 include : 1 ) $ 2836 million ( $ 1829 million net-of-tax ) of impairment related charges to write down carrying values of entergy wholesale commodities 2019 palisades , indian point 2  indian point 3 plants related assets to fair values ; 2 reduction of income tax expense  net of unrecognized tax benefits , of $ 238 million change in tax classification of legal entity owned entergy wholesale commodities nuclear power plants ; income tax benefits settlement of 2010-2011 irs audit  including $ 75 million tax benefit recognized by entergy louisiana related to treatment vidalia purchased power agreement and $ 54 million net benefit by entergy louisiana related to treatment of proceeds received in 2010 for financing of hurricane gustav and hurricane ike storm costs louisiana act 55 ; 3 reduction in expenses of $ 100 million ( $ 64 million net-of-tax ) due to effects of recording in 2016 final court decisions in lawsuits against doe related to spent nuclear fuel storage costs.
 see note 14 to financial statements for discussion impairment related charges , note 3 financial statements for discussion income tax items  note 8 financial statements for discussion spent nuclear fuel litigation.
 net revenue utility following is analysis of change in net revenue comparing 2017 to 2016.
 amount ( in millions ).
 retail electric price variance due to : 2022 implementation of formula rate plan rates effective with first billing cycle of january 2017 at entergy arkansas and increase in base rates effective february 24 , 2016 , each as approved by apsc.
significant portion base rate increase related to purchase of power block 2 union power station in march 2016 ; 2022 provision recorded in 2016 related to settlement waterford 3 replacement steam generator prudence review proceeding ; 2022 implementation of transmission cost recovery factor rider at entergy texas  effective september 2016 , increase in transmission cost recovery factor rider rate  effective march 2017  approved by puct ; 2022 increase in rates at entergy mississippi  approved by mpsc  effective first billing cycle of july 2016.
 see note 2 to financial statements for discussion of rate proceedings waterford 3 replacement steam generator prudence review proceeding.
 see note 14 to financial statements for discussion union power station purchase.
 entergy corporation subsidiaries management 2019s financial discussion analysis

| amount ( in millions )
---------------------------------------------------------------------------------- | ----------------------
2016 net revenue                                                                   | $ 6179
retail electric price                                                              | 91
regulatory credit resulting from reduction of thefederal corporate income tax rate | 56
grand gulf recovery                                                                | 27
louisiana act 55 financing savings obligation                                      | 17
volume/weather                                                                     | -61 ( 61 )
other                                                                              | 9
2017 net revenue                                                                   | $ 6318


stock performance graph graph provides comparison of five year cumulative total stockholder returns of teleflex common stock , standard & poor 2019s ( s&p ) 500 stock index s&p 500 healthcare equipment & supply index.
 annual changes for five-year period graph based on assumption $ 100 invested in teleflex common stock each index on december 31, 2009 all dividends reinvested.
 market performance.
 s&p 500 healthcare equipment & supply index 100 97 97 113 144 182

company / index                             | 2009 | 2010 | 2011 | 2012 | 2013 | 2014
------------------------------------------- | ---- | ---- | ---- | ---- | ---- | ----
teleflex incorporated                       | 100  | 102  | 119  | 142  | 190  | 235
s&p 500 index                               | 100  | 115  | 117  | 136  | 180  | 205
s&p 500 healthcare equipment & supply index | 100  | 97   | 97   | 113  | 144  | 182


to  rather than substitute for cash provided by operating activities.
 following table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) :.
 2016 outlook f0b7 safety 2013 operating a safe railroad benefits all our constituents : employees , customers  shareholders communities we serve.
 will continue using multi-faceted approach to safety  utilizing technology  risk assessment  quality control  training and employee engagement  targeted capital investments.
 continue using expanding deployment of total safety culture and courage to care throughout operations to identify and implement best practices for employee and operational safety.
 continue efforts to increase detection of rail defects ; improve close crossings educate public and law enforcement agencies about crossing safety through combination our own programs ( including risk assessment strategies ) industry programs local community activities across network.
 network operations 2013 in 2016  continue to align resources with customer demand improve network performance  maintain surge capability.
 fuel prices 2013 with dramatic drop in fuel prices during 2015  fuel price projections continue to be uncertain in current environment.
 could see volatile fuel prices during year  sensitive to global.
 domestic demand  refining capacity geopolitical events  weather conditions other factors.
 as prices fluctuate timing impact on earnings fuel surcharge programs trail fluctuations in fuel price by approximately two months.
 lower fuel prices could have positive impact on economy by increasing consumer discretionary spending increase demand for various consumer products transport.
 alternatively lower fuel prices will likely negative impact on other commodities coal , frac sand and crude oil shipments.
 capital plan 2013 in 2016  expect our capital plan to be approximately $ 3. 75 billion , including expenditures for ptc , 230 locomotives and 450 freight cars.
capital plan may be revised if business conditions warrant or if new laws or regulations affect ability to generate sufficient returns on investments.
 ( see further discussion in item 7 under liquidity and capital resources 2013 capital plan. ) f0b7 financial expectations 2013 economic conditions in market sectors continue drive uncertainty volume levels.
 expect volumes to be down slightly in 2016 compared to 2015  depend on overall economy and market conditions.
 strong u. s.
 dollar and historic low commodity prices could drive continued volatility.
 biggest uncertainties is outlook for energy markets  will bring challenges and opportunities.
 in current environment  expect continued margin improvement driven by continued pricing opportunities ongoing productivity initiatives ability to leverage resources and strengthen franchise.
 over longer term expect overall.
 economy to continue to improve at modest pace  some markets outperforming others.

millions                              | 2015           | 2014           | 2013
------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 7344         | $ 7385         | $ 6823
cash used in investing activities     | -4476 ( 4476 ) | -4249 ( 4249 ) | -3405 ( 3405 )
dividends paid                        | -2344 ( 2344 ) | -1632 ( 1632 ) | -1333 ( 1333 )
free cash flow                        | $ 524          | $ 1504         | $ 2085


management 2019s discussion analysis of financial condition results of operations 2013 ( continued ) ( amounts in millions  except per share amounts ) liquidity capital resources cash flow overview tables summarize key financial data relating to our liquidity  capital resources uses of capital.
 1 reflects net income adjusted for depreciation amortization of fixed assets intangible assets  amortization of restricted stock other non-cash compensation , non-cash ( gain ) loss related to early extinguishment of debt losses on sales of businesses deferred income taxes.
 2 reflects changes in accounts receivable  expenditures billable to clients other current assets  accounts payable accrued liabilities.
 operating activities net cash provided by operating activities during 2015 was $ 674. 0 , improvement of $ 4. 5 compared to 2014  primarily result of improvement in working capital usage of $ 13. 6.
 due to seasonality of business typically generate cash from working capital in second half of year use cash from working capital in first half year largest impacts in first fourth quarters.
 net working capital usage in 2015 primarily attributable to media businesses.
 net cash provided by operating activities during 2014 was $ 669. 5 , improvement of $ 76. 6 compared to 2013  primarily result of increase in net income offset by increase in working capital usage of $ 121. 5.
 net working capital usage in 2014 impacted by media businesses.
 timing of media buying on behalf of clients affects working capital operating cash flow.
 most businesses agencies enter commitments to pay production media costs on behalf of clients.
 pay production media charges after received funds from clients.
 amounts involved exceed revenues primarily affect level of accounts receivable  expenditures billable to clients  accounts payable accrued liabilities.
assets include cash received accounts receivable from clients for pass-through arrangements liabilities include amounts owed clients to media production suppliers.
 accrued liabilities affected by timing of other payments.
 for annual cash incentive awards accrued throughout year generally paid during first quarter of subsequent year.
 investing activities net cash used in investing during 2015 primarily related to payments for capital expenditures of $ 161. 1 attributable to purchases of leasehold improvements computer hardware.
 net cash used in investing activities during 2014 related to payments for capital expenditures and acquisitions.
 capital expenditures of $ 148. 7 related primarily to computer hardware software leasehold improvements.
 made payments of $ 67. 8 related to acquisitions completed during 2014  net of cash acquired.

cash flow data                                                                           | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013
---------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile net income to net cashprovided by operating activities1 | $ 848.2                        | $ 831.2                        | $ 598.4
net cash used in working capital2                                                        | -117.5 ( 117.5 )               | -131.1 ( 131.1 )               | -9.6 ( 9.6 )
changes in other non-current assets and liabilities using cash                           | -56.7 ( 56.7 )                 | -30.6 ( 30.6 )                 | 4.1
net cash provided by operating activities                                                | $ 674.0                        | $ 669.5                        | $ 592.9
net cash used in investing activities                                                    | -202.8 ( 202.8 )               | -200.8 ( 200.8 )               | -224.5 ( 224.5 )
net cash used in financing activities                                                    | -472.8 ( 472.8 )               | -343.9 ( 343.9 )               | -1212.3 ( 1212.3 )


condition valued using monte carlo model.
 expected volatility based on historical volatilities of traded common stock company comparative companies using daily stock prices over past three years.
 expected term is three years risk-free interest rate based on three-year.
 treasury rate in effect as of measurement date.
 following table provides weighted average assumptions in monte carlo simulation weighted average grant date fair values of psus granted for years ended december 31:.
 grant date fair value of psus vest ratably market and/or performance conditions amortized through expense over requisite service period using graded-vesting method.
 if dividends paid with to shares of company 2019s common stock before rsus and psus distributed company credits liability for value of dividends paid if rsus psus shares company common stock.
 when rsus and psus distributed company pays participant lump sum cash payment equal to value of dividend equivalents accrued.
 company accrued dividend equivalents totaling $ 1 million less than $ 1 million and $ 1 million to accumulated deficit in accompanying consolidated statements of changes in shareholders 2019 equity for years ended december 31 , 2018 , 2017 and 2016 .
 employee stock purchase plan company maintains nonqualified employee stock purchase plan ( 201cespp 201d ) through employee participants may use payroll deductions to acquire company common stock at discount.
 prior to february 5 , 2019  purchase price of common stock acquired under espp was lesser of 90% ( 90 % ) of fair market value of common stock at beginning or end of three -month purchase period.
 on july 27 , 2018 espp amended effective february 5 , 2019  to permit employee participants to acquire company common stock at 85% ( 85 % ) of fair market value of common stock at end of purchase period.
 as of december 31 , 2018  were 1.9 million shares common stock reserved for issuance under espp.
 espp considered compensatory.
 during years ended december 31 , 2018 , 2017 2016 , company issued 95 thousand , 93 thousand 93 thousand shares  under espp.

| 2018               | 2017               | 2016
------------------------------- | ------------------ | ------------------ | ------------------
expected volatility             | 17.23% ( 17.23 % ) | 17.40% ( 17.40 % ) | 15.90% ( 15.90 % )
risk-free interest rate         | 2.36% ( 2.36 % )   | 1.53% ( 1.53 % )   | 0.91% ( 0.91 % )
expected life ( years )         | 3.0                | 3.0                | 3.0
grant date fair value per share | $ 73.62            | $ 72.81            | $ 77.16


item 2.
 properties.
 conduct primary operations at owned and leased facilities described below.
 location operations conducted approximate square feet expiration new haven , connecticut corporate headquarters and executive , sales , research and development offices 514000.
 believe our administrative office space adequate to meet needs for foreseeable future.
 believe research and development facilities and manufacturing facility  with third party manufacturing facilities  adequate for on-going activities.
 in addition to locations above also lease space in other.
 locations and in foreign countries to support operations as global organization.
 as of december 31, 2015  leased approximately 254000 square feet in cheshire , connecticut previous location of corporate headquarters and executive , sales , research and development offices.
 in december 2015  entered early termination of lease occupy space through may 2016.
 in april 2014  purchased fill/finish facility in athlone , ireland.
 following refurbishment facility after successful completion of appropriate validation processes regulatory approvals facility become first company-owned fill/finish and packaging facility for commercial and clinical products.
 in may 2015 announced plans to construct new biologics manufacturing facility on existing property in dublin ireland  expected to be completed by 2020.
 item 3.
 legal proceedings.
 in may 2015  received subpoena in connection with investigation by enforcement division of sec requesting information related to grant-making activities and compliance with fcpa in various countries.
 sec seeks information related to alexion 2019s recalls of specific lots of soliris and related securities disclosures.
 in october 2015  alexion received request from doj for voluntary production of documents and other information pertaining to alexion's compliance with fcpa.
 alexion cooperating with these investigations.
at this time , alexion unable to predict duration  scope or outcome of these investigations.
 given ongoing nature of investigations management not believe loss related to matters is probable or potential magnitude of loss or range of loss  if can be reasonably estimated.
 item 4.
 mine safety disclosures.
 not applicable.

location                | operations conducted                                                        | approximatesquare feet | leaseexpirationdates
----------------------- | --------------------------------------------------------------------------- | ---------------------- | --------------------
new haven connecticut   | corporate headquarters and executive sales research and development offices | 514000                 | 2030
dublin ireland          | global supply chain distribution and administration offices                 | 215000                 | owned
lexington massachusetts | research and development offices                                            | 81000                  | 2019
bogart georgia          | commercial research and development manufacturing                           | 70000                  | 2024
smithfield rhode island | commercial research and development manufacturing                           | 67000                  | owned
zurich switzerland      | regional executive and sales offices                                        | 69000                  | 2025


discount rate to measure pension obligations determined by comparing expected future benefits paid under plan with yields on high quality corporate bonds of similar duration.
 impact on pension expense of. 5% (. 5 % ) decrease in discount rate in current environment is increase of $ 18 million per year.
 sensitivity depends on economic environment and unrecognized actuarial gains or losses on measurement date.
 expected long-term return on assets assumption significant effect on pension expense.
 expected return on plan assets is long-term assumption established by considering historical and anticipated returns of asset classes invested in by pension plan and asset allocation policy in place.
 for assumption 201clong term 201d refers to period over plan 2019s projected benefit obligations will be disbursed.
 we review this assumption at each measurement date and adjust it if warranted.
 selection process references historical data and current environment primarily utilizes qualitative judgment regarding future return expectations.
 to evaluate reasonableness of assumption examine variety of viewpoints and data.
 studies shown portfolios primarily of.
 equity securities historically returned approximately 9% ( 9 % ) annually over long periods.
 debt securities returned approximately 6% ( 6 % ) annually over long periods.
 application of these historical returns to plan 2019s allocation ranges for equities and bonds produces result between 6. 50% ( 6. 50 % ) and 7. 25% ( 7. 25 % ) is one point of reference among other factors into consideration.
 also examine plan 2019s actual historical returns over various periods and consider current economic environment.
 recent experience considered in evaluation with especially for short time periods recent returns are not reliable indicators of future returns.
 annual returns can vary significantly ( actual returns for 2014 , 2013 and 2012 were +6. 50% ( +6. 50 % ) , +15.48% ( +15. 48 % ) , and +15. 29% ( +15. 29 % ) , respectively selected assumption represents our estimated long-term average prospective returns.
 acknowledging potentially wide range for this assumption we annually examine assumption used by other companies with similar pension investment strategies ascertain our determinations differ.
 this data informs our process emphasis on qualitative judgment of future investment returns given conditions at each annual measurement date.
 consideration expected long-term return on plan assets for determining net periodic pension cost for 2014 was 7. 00% ( 7. 00 % ), down from 7. 50% ( 7. 50 % ) for 2013.
 after considering views of internal and external capital market advisors effects of recent economic environment on long-term prospective fixed income returns reducing expected long-term return on assets to 6. 75% ( 6. 75 % ) for determining pension cost for under current accounting rules difference between expected long-term returns and actual returns is accumulated and amortized to pension expense over future periods.
 each one percentage point difference in actual return with expected return can cause expense in subsequent years to increase or decrease by up to $ 9 million as impact amortized into results of operations.
 estimate pretax pension expense of $ 9 million in 2015 compared with pretax income of $ 7 million in 2014.
 year-over-year expected increase in expense reflects effects of lower expected return on asset assumption , improved mortality  lower discount rate required in 2015.
 factors partially offset by favorable impact of increase in plan assets at december 31 , 2014 and assumed return on $ 200 million voluntary contribution to plan made in february 2015.
 table below reflects estimated effects on pension expense of changes in annual assumptions using 2015 estimated expense as a baseline.
table 26 : pension expense 2013 sensitivity analysis change in assumption ( a ) estimated increase/ ( decrease ) to 2015 pension expense ( in millions ).
 ( a ) impact is effect of changing specified assumption holding all other assumptions constant.
 pension plan contribution requirements not sensitive to actuarial assumptions.
 investment performance most impact on contribution requirements will drive required contributions in future years.
 current law  including provisions pension protection act of 2006 sets limits to minimum and maximum contributions to plan.
 notwithstanding voluntary contribution made in february 2015 do not expect to be required to make any contributions to plan during 2015.
 maintain other defined benefit plans less significant effect on financial results including nonqualified supplemental retirement plans for certain employees described in note 13 employee benefit plans in notes to consolidated financial statements in item 8 of report.
 66 pnc financial services group , inc.
 2013 form 10-k

change in assumption ( a )                                   | estimatedincrease/ ( decrease ) to 2015pensionexpense ( in millions )
------------------------------------------------------------ | ---------------------------------------------------------------------
.5% ( .5 % ) decrease in discount rate                       | $ 18
.5% ( .5 % ) decrease in expected long-term return on assets | $ 22
.5% ( .5 % ) increase in compensation rate                   | $ 2


note 12 derivative instruments fair value measurements company exposed to market risks changes in interest rates foreign currency exchange rates commodity prices  exist part of ongoing business operations.
 management uses derivative financial commodity instruments  including futures , options  swaps  where appropriate to manage these risks.
 instruments used as hedges must be effective at reducing risk with exposure being hedged must be designated as hedge at inception of contract.
 company designates derivatives as cash flow hedges , fair value hedges  net investment hedges  uses other contracts to reduce volatility in interest rates foreign currency commodities.
 policy company does not engage in trading or speculative hedging transactions.
 total notional amounts of company 2019s derivative instruments as of december 29 , 2012 and december 31 , 2011 were as follows:.
 following description of each category in fair value hierarchy financial assets and liabilities of company included in each category at december 29, 2012 december 31 , 2011  measured on recurring basis.
 level 1 2014 financial assets and liabilities values based on unadjusted quoted prices for identical assets liabilities in active market.
 for company level 1 financial assets liabilities consist primarily of commodity derivative contracts.
 level 2 2014 financial assets and liabilities values based on quoted prices in markets not active or model inputs observable directly or indirectly for full term of asset or liability.
 for company level 2 financial assets and liabilities consist of interest rate swaps over-the-counter commodity and currency contracts.
 company 2019s calculation of fair value of interest rate swaps derived from discounted cash flow analysis based on terms of contract interest rate curve.
over-the-counter commodity derivatives valued approach based commodity index prices less contract rate multiplied by notional amount.
 foreign currency contracts valued income approach based forward rates less contract rate multiplied notional amount.
 company 2019s calculation of fair value of level 2 financial assets liabilities risk of nonperformance including counterparty credit risk.
 level 3 2014 financial assets liabilities values based on prices valuation techniques require inputs unobservable significant to fair value measurement.
 inputs reflect management 2019s assumptions about assumptions market participant pricing asset liability.
 company level 3 financial assets or liabilities as of december 29, 2012 or december 31 , 2011.
 following table presents assets liabilities measured at fair value in consolidated balance sheet recurring as of december 29, 2012 and december 31 , 2011 : derivatives designated as hedging instruments : 2012 2011 ( millions ) level 1 level 2 total total assets : foreign currency exchange contracts : other current assets $ 2014 $ 4 $ $ 2014 $ 11 $ 11 interest rate contracts ( : other assets 2014 64 2014 23 23 commodity contracts : other current assets 2014 2014 2 2 total assets $ 2014 $ 68 $ 2 $ 34 $ 36 liabilities : foreign currency exchange contracts : other current liabilities $ 2014 $ ( 3 ) $ ( ) $ 2014 $ ( 18 ) $ ( 18 ) commodity contracts : other current liabilities 2014 ( 11 ) ( ) ( 4 ) ( 12 ) ( 16 ) other liabilities 2014 ( 27 ) ) 2014 ( 34 ) ) total liabilities $ 2014 $ ( 41 ) $ ( 41 ) $ ( 4 ) $ ( 64 ) $ ( 68 ) fair value of related hedged portion of company 2019s long-term debt , level 2 liability  was $ 2.3 billion december 29 2012 $ 626 million december 31 derivatives not hedging instruments : 2012 2011 ( millions ) level 1 level 2 total assets : commodity contracts other current assets $ 5 $ 2014 $ 5 $ 2014 $ 2014 $ 2014 total assets $ 5 $ 2014 $ 5 $ 2014 $ 2014 2014 liabilities commodity contracts other current liabilities $ ( 3 ) $ 2014 $ 3 $ 2014 2014 2014 total liabilities $ 3 ) $ 2014 $ 3 $ 2014 $ 2014 $ 2014

( millions )                        | 2012   | 2011
----------------------------------- | ------ | ------
foreign currency exchange contracts | $ 570  | $ 1265
interest rate contracts             | 2150   | 600
commodity contracts                 | 136    | 175
total                               | $ 2856 | $ 2040


entergy corporation subsidiaries management 2019s financial discussion analysis miso deferral variance due to deferral 2014 of non-fuel miso-related charges  approved by lpsc mpsc.
 deferral non-fuel miso-related charges partially offset in other operation maintenance expenses.
 see note 2 to financial statements for discussion of recovery of non-fuel miso-related charges.
 waterford 3 replacement steam generator provision due to regulatory charge of approximately $ 32 million recorded in 2015 related to uncertainty with resolution of waterford 3 replacement steam generator project.
 see note 2 to financial statements for discussion of waterford 3 replacement steam generator prudence review proceeding.
 entergy wholesale commodities analysis of change in net revenue comparing 2015 to 2014.
 amount ( in millions ).
 table net revenue for entergy wholesale commodities decreased by approximately $ 558 million in 2015 due to 2022 lower realized wholesale energy prices due higher northeast market power prices in 2014  lower capacity prices in 2015 ; 2022 decrease in net revenue result of vermont yankee ceasing power production in december 2014.
 decrease partially offset by higher volume in entergy wholesale commodities nuclear fleet  excluding vermont yankee from fewer refueling outage days in 2015 compared to 2014 partially offset by more unplanned outage days in 2015 compared to 2014.

| amount ( in millions )
---------------------------------------------- | ----------------------
2014 net revenue                               | $ 2224
nuclear realized price changes                 | -310 ( 310 )
vermont yankee shutdown in december 2014       | -305 ( 305 )
nuclear volume excluding vermont yankee effect | 20
other                                          | 37
2015 net revenue                               | $ 1666


devon energy corporation subsidiaries notes consolidated financial statements 2013 continued proved undeveloped reserves table presents changes in devon 2019s total proved undeveloped reserves during 2014 ( in mmboe ).
 at december 31 , 2014 devon had 689 mmboe of proved undeveloped reserves.
 2 percent decrease compared to 2013 25 percent of total proved reserves.
 drilling development activities increased devon 2019s proved undeveloped reserves 161 mmboe resulted in conversion of 89 mmboe or 13 percent of 2013 proved undeveloped reserves to developed reserves.
 costs incurred related to development conversion of devon 2019s undeveloped reserves were approximately $ 1. 0 billion for 2014.
 revisions other than price decreased devon 2019s proved undeveloped reserves 43 mmboe due to evaluations of certain.
 onshore dry-gas areas not expect to develop next five years.
 largest revisions approximately 69 mmboe relate to dry-gas areas in barnett shale in north texas.
 significant amount of devon 2019s proved undeveloped reserves at end of 2014 related to jackfish operations.
 at december 31 , 2014 and 2013  devon 2019s jackfish proved undeveloped reserves were 384 mmboe and 441 mmboe .
 development schedules for jackfish reserves controlled by need to keep processing plants at 35000 barrel daily facility capacity.
 processing plant capacity controlled by factors total steam processing capacity steam-oil ratios.
 development of projects involves construction of steam injection/distribution bitumen processing facilities.
 due to large capital investments large reserves required provide economic returns project conditions meet circumstances requiring period greater than 5 years for conversion to developed reserves.
result, reserves classified as proved undeveloped for more than five years.
 currently development schedule for reserves extends though year 2031.
 price revisions 2014 2013 reserves increased 9 mmboe due to higher gas prices in barnett shale and anadarko basin offset by higher bitumen prices in lower after-royalty volumes in canada.
 2013 2013 reserves increased 94 mmboe due to higher gas prices.
 increase, 43 mmboe related to barnett shale 19 mmboe related to rocky mountain area.
 2012 2013 reserves decreased 171 mmboe due to lower gas prices.
 decrease, 100 mmboe related to barnett shale 25 mmboe related to rocky mountain area.

| u.s .      | canada     | total
-------------------------------------------------- | ---------- | ---------- | ----------
proved undeveloped reserves as of december 31 2013 | 258        | 443        | 701
extensions and discoveries                         | 153        | 8          | 161
revisions due to prices                            | -1 ( 1 )   | -34 ( 34 ) | -35 ( 35 )
revisions other than price                         | -61 ( 61 ) | 18         | -43 ( 43 )
sale of reserves                                   | -4 ( 4 )   | -2 ( 2 )   | -6 ( 6 )
conversion to proved developed reserves            | -40 ( 40 ) | -49 ( 49 ) | -89 ( 89 )
proved undeveloped reserves as of december 31 2014 | 305        | 384        | 689


uncapped damage provisions rare , but individual contracts could still represent meaningful risk.
 possibility that damage claim by counterparty to contracts could result in expenses to company in excess of revenue received from counterparty in with contract.
 indemnification provisions : company may provide indemnifications for losses from breach of general warranties in certain commercial , intellectual property and divestiture agreements.
 historically  company not made significant payments under these agreements , nor significant claims asserted against company.
 , increasing risk in to intellectual property indemnities given current legal climate.
 in indemnification cases , payment by company is conditioned on other party making claim pursuant to procedures specified in contract , procedures typically allow company to challenge other party 2019s claims.
 company 2019s obligations under these agreements for indemnification based on breach of representations and warranties generally limited in duration typically not more than 24 months  for amounts not in excess of contract value , in some instances company may have recourse against third parties for certain payments made by company.
 legal matters : company is a defendant in various lawsuits , claims and actions , in normal course of business.
 include actions relating to products , contracts securities , matters initiated by third parties or motorola relating to infringements of patents , violations of licensing arrangements other intellectual property-related matters.
 in opinion of management  ultimate disposition of these matters will not have material adverse effect on company 2019s consolidated financial position , liquidity or results of operations.
 segment information following commentary should be read in conjunction with financial results of each reporting segment as detailed in note 12 , 201cinformation by segment and geographic region , 201d to company 2019s consolidated financial statements.
net sales operating results for company 2019s three operating segments for 2008 , 2007 2006 presented below.
 mobile devices segment designs  manufactures  sells services wireless handsets with integrated software accessory products licenses intellectual property.
 in 2008  segment 2019s net sales represented 40% ( 40 % ) of company 2019s consolidated net sales compared to 52% ( 52 % ) in 2007 66% ( 66 % ) in 2006.
 ( dollars in millions ) 2008 2007 2006 2008 20142007 20142006 years ended december 31 percent change.
 percentage change not meaningful.
 segment results 20142008 compared to 2007 in 2008 segment 2019s net sales were $ 12. 1 billion  decrease of 36% ( 36 % ) compared to net sales $ 19. 0 billion in 2007.
 36% ( 36 % ) decrease in net sales primarily driven by 37% ( 37 % ) decrease in unit shipments.
 segment 2019s net sales negatively impacted by segment 2019s limited product offerings in critical market segments  particularly 3g products  including smartphones  very low-tier products.
 segment 2019s net sales impacted by global economic downturn in second half of 2008 resulted in slowing of end user demand.
 product technology basis net sales decreased substantially for gsm and cdma technologies lesser decreased for iden and 3g technologies.
 geographic basis net sales decreased substantially in north america europe middle east and africa region asia lesser decreased in latin america.
 segment incurred operating loss of $ 2. 2 billion in 2008  compared to operating loss of $ 1. 2 billion in 2007.
increase operating loss due to decrease gross margin  driven by i 36% ( 36 % ) decrease net sales  ii ) excess inventory related charges of $ 370 million in 2008 due to decision to 61management 2019s discussion analysis of financial condition results operations %%transmsg*** transmitting job : c49054 pcn : 064000000 ***%%pcmsg|61 |00028|yes|no|02/24/2009 12:31|0|0|page valid , no graphics -- color : n|

( dollars in millions )     | years ended december 31 2008 | years ended december 31 2007 | years ended december 31 2006 | years ended december 31 2008 20142007 | 2007 20142006
--------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | ---------------
segment net sales           | $ 12099                      | $ 18988                      | $ 28383                      | ( 36 ) % (  % )                       | ( 33 ) % (  % )
operating earnings ( loss ) | -2199 ( 2199 )               | -1201 ( 1201 )               | 2690                         | 83% ( 83 % )                          | ***


income taxes american water subsidiaries participate in consolidated federal income tax return for u. s.
 tax purposes.
 members consolidated group charged with federal income tax expense determined as if filed separate returns.
 certain income and expense items accounted for in different time periods for financial reporting for income tax reporting.
 company provides deferred income taxes on difference between tax basis of assets liabilities amounts carried in financial statements.
 deferred income taxes based on enacted tax rates expected to in effect when temporary differences projected to reverse.
 regulated utility subsidiaries recognize regulatory assets liabilities for effect on revenues expected to realized as tax effects of temporary differences previously flowed to customers  reverse.
 investment tax credits deferred by subsidiaries amortized to income over average estimated service lives of related assets.
 company recognizes accrued interest penalties related to tax positions as component of income tax expense accounts for sales tax collected from customers remitted to taxing authorities on net basis.
 see note 13 2014income taxes.
 allowance for funds used during construction afudc is non-cash credit to income with corresponding charge to utility plant represents cost of borrowed funds or return on equity funds devoted to plant under construction.
 regulated utility subsidiaries record afudc to extent permitted by pucs.
 portion of afudc attributable to borrowed funds shown as reduction of interest , net in accompanying consolidated statements of operations.
 any portion of afudc attributable to equity funds included in other income ( expenses ) in accompanying consolidated statements of operations.
 afudc summarized in following table for years ended december 31:.
environmental costs company 2019s water and wastewater operations and operations of its market-based businesses subject to.
 federal , state  local foreign requirements to environmental protection  company periodically becomes subject to environmental claims in normal course of business.
 environmental expenditures relate to current operations or provide future benefit are expensed or capitalized as appropriate.
 remediation costs relate to existing condition caused by past operations accrued  undiscounted basis , when probable these costs will be incurred and can be reasonably estimated.
 conservation agreement by subsidiary of company with national oceanic and atmospheric administration in 2010 amended in 2017 required company to implement measures to protect steelhead trout and its habitat in carmel river watershed in state of california.
 company agreed to pay $ 1 million annually commencing in 2010 final payment in 2021.
 remediation costs accrued amounted to $ 6 million and less than $ 1 million as of december 31, 2017 and 2016 , respectively.
 derivative financial instruments company uses derivative financial instruments for hedging exposures to fluctuations in interest rates.
 derivative contracts entered into for periods consistent with related underlying

| 2017 | 2016 | 2015
----------------------------------------------------- | ---- | ---- | ----
allowance for other funds used during construction    | $ 19 | $ 15 | $ 13
allowance for borrowed funds used during construction | 8    | 6    | 8


dish network corporation notes to consolidated financial statements - recorded as decrease in 201cincome tax ( provision ) benefit  net 201d on consolidated statements of operations and comprehensive income ( loss ) for year ended december 31 , 2013.
 10.
 discontinued operations as of december 31 , 2013 blockbuster ceased material operations.
 results of blockbuster presented for periods as discontinued operations in consolidated financial statements.
 during years ended december 31 , 2013 and 2012  revenue from discontinued operations was $ 503 million and $ 1. 085 billion  respectively.
 201cincome ( loss ) from discontinued operations  before income taxes 201d for same periods was loss of $ 54 million and $ 62 million .
 201cincome ( loss ) from discontinued operations  net of tax 201d for same periods loss of $ 47 million and $ 37 million  respectively.
 as of december 31 , 2013 net assets from discontinued operations : december 31 , 2013 ( in thousands ).
 blockbuster - domestic since blockbuster acquisition evaluated impact of factors including competitive pressures ability fewer company-owned domestic retail stores to support corporate administrative costs other issues impacting store-level financial performance of company-owned domestic retail stores.
 factors led us to close significant number of company-owned domestic retail stores during 2012 and 2013.
 on november 6 , 2013 announced blockbuster would close all remaining company-owned domestic retail stores discontinue blockbuster by-mail dvd service.
 as of december 31 , 2013 blockbuster ceased material operations.
 blockbuster 2013 mexico during third quarter 2013 determined blockbuster operations in mexico ( 201cblockbuster mexico 201d ) were 201cheld for sale.201d result recorded pre-tax impairment charges of $ 19 million related to exiting business recorded in 201cincome ( loss ) from discontinued operations  net of tax 201d on consolidated statements of operations comprehensive income ( loss ) for year ended december 31 , 2013.
 january 14 , 2014  completed sale of blockbuster mexico.
 blockbuster uk administration on january 16 , 2013  blockbuster entertainment limited blockbuster gb limited  blockbuster operating subsidiaries in united kingdom entered into administration proceedings in united kingdom ( 201cadministration 201d ).
 administration wrote down assets of all blockbuster uk subsidiaries to estimated net realizable value on consolidated balance sheets as of december 31 , 2012.
 total recorded charges of approximately $ 46 million pre-tax basis related to administration recorded in 201cincome ( loss ) from discontinued operations  net of tax 201d on consolidated statements of operations comprehensive income ( loss ) for year ended december 31 , 2012.

| as of december 31 2013 ( in thousands )
-------------------------------------------------- | ---------------------------------------
current assets from discontinued operations        | $ 68239
noncurrent assets from discontinued operations     | 9965
current liabilities from discontinued operations   | -49471 ( 49471 )
long-term liabilities from discontinued operations | -19804 ( 19804 )
net assets from discontinued operations            | $ 8929


american tower corporation subsidiaries notes consolidated financial statements 2014 continued ) ati 7. 25% ( 7. 25 % ) notes 2014during year ended december 31 , 2006 company repurchased privately transactions $ 74. 9 million principal amount ati 7. 25% ( 7. 25 % ) notes for $ 77. 3 million cash.
 transactions company recorded charge of $ 3. 9 million related to amounts paid excess carrying value write-off of deferred financing fees reflected in loss on retirement of long-term obligations consolidated statement of operations for year ended december 31 , 2006.
 as of december 31 , 2006 2005  company had $ 325. 1 million and $ 400. 0 million outstanding under ati 7. 25% ( 7. 25 % ) notes .
 capital lease obligations notes payable 2014the company 2019s capital lease obligations notes payable approximated $ 59. 8 million and $ 60. 4 million as of december 31 , 2006 2005.
 obligations bear interest at rates 6. 3% ( 6. 3 % ) to 9. 5% ( 9. 5 % ) mature periods less than one year to approximately seventy years.
 maturities 2014as of december 31 , 2006  aggregate carrying value of long-term debt  including capital leases for next five years thereafter estimated to be ( in thousands ) : year ending december 31.
 holders of company 2019s 5. 0% ( 5. 0 % ) notes right to require company repurchase notes on specified dates prior to maturity date in 2010  company may pay purchase price by issuing shares of class a common stock  subject to certain conditions.
 obligations respect right of holders to put 5. 0% ( 5. 0 % ) notes included table notes mature date put rights become exercisable in 2007.
february 2007 , company conducted cash tender offer for outstanding 5. 0% ( 5. 0 % ) notes to enable note holders to exercise right to require company to purchase notes.
 ( see note 19. ) 8.
 derivative financial instruments company entered interest rate protection agreements to manage exposure on variable rate debt under credit facilities manage variability in cash flows relating to forecasted interest payments connection with likely issuance of new fixed rate debt company expects to issue on or before july 31 , 2007.
 under agreements  company exposed to credit risk extent counterparty fails to meet terms contract.
 exposure limited to current value of contract at time counterparty fails perform.
 company believes contracts as of december 31, 2006 and 2005 are with credit worthy institutions.
 during fourth quarter of 2005 and january 2006  company entered total ten interest rate swap agreements to manage exposure to variable rate interest obligations under american tower and spectrasite

2007                                                                                | $ 253907
------------------------------------------------------------------------------------------------- | ---------
2008                                                                                | 1278
2009                                                                                | 654
2010                                                                                | 1833416
2011                                                                                | 338501
thereafter                                                                                | 1112253
total cash obligations                                                                            | $ 3540009
accreted value of the discount and premium of 3.00% ( 3.00 % ) notes and 7.125% ( 7.125 % ) notes | 3007
balance as of december 31 2006                                                                    | $ 3543016


advance auto parts , inc.
 subsidiaries notes consolidated financial statements december 31 , 2011, january 1 , 2011 january 2 , 2010 ( in thousands except per share data ) 2011-12 superseded pending paragraphs in asu 2011-05 201ccomprehensive income 2013 presentation of comprehensive income 201d defer changes in asu 2011-05 related to reclassification adjustments accumulated comprehensive income.
 adoption of asu 2011-05 not expected material impact on company 2019s consolidated financial condition  results of operations cash flows.
 january 2010  fasb issued asu no.
 2010-06 201cfair value measurements disclosures 2013 improving disclosures about fair value measurements. 201d asu 2010-06 requires new disclosures for significant transfers in out of level 1 2 of fair value hierarchy activity within level 3 fair value hierarchy.
 updated guidance clarifies existing disclosures regarding level of disaggregation of assets liabilities valuation techniques inputs measure fair value.
 updated guidance effective for interim annual reporting periods after december 15, 2009  exception of new level 3 activity disclosures effective for interim annual reporting periods after december 15 , 2010.
 adoption of asu 2010-06 no impact on company 2019s consolidated financial condition  results of operations cash flows.
 3.
 inventories  net : merchandise inventory company used lifo method of accounting for approximately 95% ( 95 % ) of inventories at december 31 , 2011 january 1 , 2011.
 under lifo  company 2019s cost of sales reflects costs most recently purchased inventories inventory carrying balance represents costs for inventories purchased in fiscal 2011 and prior years.
 utilizing lifo  company recorded increase to cost of sales of $ 24708 for fiscal 2011 due to increase in supply chain costs inflationary pressures affecting certain product categories.
company recorded reduction to cost sales of $ 29554 and $ 16040 for fiscal 2010 and 2009 .
 prior to fiscal 2011  company 2019s overall costs to acquire inventory for same or similar products decreased historically company growth merchandise strategies supply chain efficiencies.
 product cores remaining inventories comprised of product cores  non-consumable portion certain parts batteries valued under first-in , first-out ( "fifo" ) method.
 product cores included as part of company's merchandise costs passed to customer or returned to vendor.
 product cores not subject to frequent cost changes like other merchandise inventory no material difference when applying lifo or fifo valuation method.
 inventory overhead costs purchasing warehousing costs included in inventory at fifo  at december 31 , 2011 and january 1 , 2011  were $ 126840 and $ 103989  respectively.
 inventory balance and inventory reserves inventory balances at year-end for fiscal 2011 and 2010 were follows : inventories at fifo , net adjustments to state inventories at lifo inventories at lifo , net december 31 , $ 1941055 102103 $ 2043158 january 1 , $ 1737059 126811 $ 1863870.
 advance auto parts , inc.
 subsidiaries notes to consolidated financial statements december 31 , 2011 , january 1 , 2011 january 2 , 2010 ( in thousands except per share data ) 2011-12 superseded pending paragraphs in asu 2011-05 201ccomprehensive income 2013 presentation comprehensive income 201d defer only changes in asu 2011-05 related to presentation reclassification adjustments comprehensive income.
 adoption of asu 2011-05 not expected material impact on company 2019s consolidated financial condition  results of operations or cash flows.
january 2010  fasb issued asu no.
 2010-06 201cfair value measurements disclosures 2013 improving disclosures about fair value measurements. 201d asu 2010-06 requires new disclosures for significant transfers in and out of level 1 and 2 fair value hierarchy activity within level 3 fair value hierarchy.
 updated guidance clarifies existing disclosures regarding level of disaggregation of assets liabilities valuation techniques inputs measure fair value.
 updated guidance effective for interim and annual reporting periods after december 15, 2009  exception of new level 3 activity disclosures effective for interim annual reporting periods beginning after december 15 , 2010.
 adoption of asu 2010-06 no impact on company 2019s consolidated financial condition results of operations or cash flows.
 3.
 inventories  net merchandise inventory company used lifo method of accounting for approximately 95% ( 95 % ) of inventories at december 31 , 2011 and january 1 , 2011.
 under lifo  company 2019s cost of sales reflects costs of most recently purchased inventories inventory carrying balance represents costs for inventories purchased in fiscal 2011 and prior years.
 utilizing lifo company recorded increase to cost of sales of $ 24708 for fiscal 2011 due to increase in supply chain costs inflationary pressures affecting certain product categories.
 company recorded reduction to cost of sales of $ 29554 and $ 16040 for fiscal 2010 and 2009.
 prior to fiscal 2011 company 2019s overall costs to acquire inventory for same or similar products decreased historically as company continued growth execution merchandise strategies supply chain efficiencies.
 product cores remaining inventories comprised of product cores  non-consumable portion of certain parts and batteries valued under first-in , first-out ( "fifo" ) method.
product cores included company's merchandise costs passed to customer or returned to vendor.
 cores not subject to frequent cost changes like other merchandise inventory no material difference when applying lifo or fifo valuation method.
 inventory overhead costs purchasing and warehousing costs included inventory at fifo december 31 , 2011 and january 1 , 2011 were $ 126840 and $ 103989  respectively.
 inventory balance and inventory reserves inventory balances at year-end for fiscal 2011 and 2010 follows : inventories at fifo  net adjustments to state inventories at lifo inventories lifo  net december 31, $ 1941055 102103 $ 2043158 january 1, $ 1737059 126811 $ 1863870

| december 312011 | january 12011
---------------------------------------- | --------------- | -------------
inventories at fifo net                  | $ 1941055       | $ 1737059
adjustments to state inventories at lifo | 102103          | 126811
inventories at lifo net                  | $ 2043158       | $ 1863870


devon energy corporation and subsidiaries notes consolidated financial statements 2013 continued ) asset divestitures asset divestitures 2013 and 2014  devon removed $ 26 million and $ 706 million of goodwill allocated to these assets.
 impairment devon 2019s canadian goodwill recognized in 2001 business combination almost of conventional gas assets devon no longer owns.
 performing goodwill impairment test in note 1 devon concluded implied fair value of canadian goodwill was zero as of december 31 , 2014.
 conclusion based on significant decline in benchmark oil prices after opec 2019s decision not to reduce production targets announced late november 2014.
 in fourth quarter of 2014  devon wrote off remaining canadian goodwill recognized $ 1. 9 billion impairment.
 other intangible assets as of december 31 , 2014  intangible assets associated with customer relationships had gross carrying amount of $ 569 million and $ 36 million of accumulated amortization.
 weighted-average amortization period for customer relationships is 13. 7 years.
 amortization expense for intangibles was approximately $ 36 million for year ended december 31 , 2014.
 other intangible assets reported in other long-term assets in accompanying consolidated balance sheets.
 following table summarizes estimated aggregate amortization expense for next five years.
 year amortization amount ( in millions ).

year | amortization amount ( in millions )
---- | -----------------------------------
2015 | $ 45
2016 | $ 45
2017 | $ 45
2018 | $ 45
2019 | $ 44


liquidity primary source of liquidity is cash flow from operations.
 over recent two-year period operations generated $ 5. 6 billion in cash.
 substantial portion of operating cash flow returned to shareholders through share repurchases and dividends.
 we also use cash from operations to fund capital expenditures and acquisitions.
 typically use combination of cash , notes payable  long-term debt  occasionally issue shares of stock to finance significant acquisitions.
 as of may 26 , 2019  had $ 399 million of cash and cash equivalents held in foreign jurisdictions.
 result tcja historic undistributed earnings of foreign subsidiaries were taxed in.
 via one-time repatriation tax in fiscal 2018.
 re-evaluated assertion concluded earnings prior to fiscal 2018 will remain permanently reinvested no longer make permanent reinvestment assertion beginning with fiscal 2018 earnings.
 accounting for recorded local country withholding taxes related to certain entities from began repatriating undistributed earnings will continue to record local country withholding taxes on all future earnings.
 result of transition tax  we may repatriate cash and cash equivalents held by foreign subsidiaries without funds subject to further.
 income tax liability ( see note 14 to consolidated financial statements in item 8 report for additional information ).
 cash flows from operations.
 during fiscal 2019  cash provided by operations was $ 2807 million compared to $ 2841 million in same period last year.
 $ 34 million decrease was driven by $ 377 million decrease in net earnings and $ 550 million change in current assets and liabilities partially offset by $ 598 million change in deferred income taxes.
$ 550 million change in current assets and liabilities driven by $ 413 million change in timing of accounts payable including impact of longer payment terms implemented in prior fiscal years.
 change in deferred income taxes related to $ 638 million provisional benefit from revaluing net.
 deferred tax liabilities to reflect new.
 corporate tax rate result tcja in fiscal strive to grow core working capital at or below rate of growth net sales.
 for fiscal 2019  core working capital decreased 34 percent  compared to net sales increase of 7 percent.
 as of may 26 , 2019  core working capital balance totaled $ 385 million down 34 percent versus last year driven by benefits from payment terms extension program lower inventory balances.
 in fiscal 2018  core working capital decreased 27 percent compared to net sales increase of 1 percent.

in millions                                                                                | fiscal year 2019 | fiscal year 2018
----------------------------------------------------------------------------------------------- | ---------------- | ----------------
net earnings including earnings attributable to redeemable and noncontrollinginterests          | $ 1786.2         | $ 2163.0
depreciation and amortization                                                                   | 620.1            | 618.8
after-taxearnings from joint ventures                                                           | -72.0 ( 72.0 )   | -84.7 ( 84.7 )
distributions of earnings from joint ventures                                                   | 86.7             | 113.2
stock-based compensation                                                                        | 84.9             | 77.0
deferred income taxes                                                                           | 93.5             | -504.3 ( 504.3 )
pension and other postretirement benefit plan contributions                                     | -28.8 ( 28.8 )   | -31.8 ( 31.8 )
pension and other postretirement benefit plan costs                                             | 6.1              | 4.6
divestitures loss                                                                               | 30.0             | -
restructuring impairment and other exit costs                                                   | 235.7            | 126.0
changes in current assets and liabilities excluding the effects of acquisitions anddivestitures | -7.5 ( 7.5 )     | 542.1
other net                                                                                | -27.9 ( 27.9 )   | -182.9 ( 182.9 )
net cash provided by operating activities                                                       | $ 2807.0         | $ 2841.0