million excluding gain on bargain purchase price adjustment on acquisition of majority share operations in turkey restructuring costs ) compared with $ 53 million ( $ 72 million excluding restructuring costs ) in 2012 $ 66 million ( $ 61 million excluding gain for bargain purchase price adjustment on acquisition by joint venture in turkey costs associated closure of etienne mill in france in 2009 ) in 2011.
 sales volumes in 2013 higher than 2012 reflecting strong demand for packaging in agricultural markets morocco turkey.
 in europe  sales volumes decreased slightly due to weak demand for packaging in industrial markets lower demand for packaging in agricultural markets poor weather conditions.
 average sales margins lower due to input costs for containerboard rising box sales price increases.
 other input costs higher primarily for energy.
 operating profits in 2013 and 2012 included net gains of $ 13 million and $ 10 million for insurance settlements italian government grants partially offset by additional operating costs related to earthquakes in northern italy may 2012 affected san felice box plant.
 first quarter of 2014 sales volumes expected to increase slightly reflecting higher demand for packaging in industrial markets.
 average sales margins expected to improve slight reductions in material costs planned box price increases.
 other input costs should be about flat.
 brazilian industrial packaging includes results of orsa international paper embalagens. corrugated packaging producer international paper acquired 75% ( 75 % ) share in january 2013.
 net sales were $ 335 million in 2013.
 operating profits in 2013 loss of $ 2 million ( gain of $ 2 million excluding acquisition integration costs ).
 first quarter of 2014 sales volumes expected to seasonally lower than fourth quarter of 2013.
 average sales margins should improve reflecting partial implementation of announced sales price increase favorable product mix.
operating costs input costs expected lower.
 asian industrial packaging net sales were $ 400 million in 2013 compared with $ 400 million 2012 $ 410 million in 2011.
 operating profits for packaging operations were loss of $ 5 million in 2013 ( loss $ 1 million excluding restructuring costs ) compared with gains $ 2 million in 2012 $ 2 million in 2011.
 operating profits impacted 2013 by higher average sales margins slightly higher sales volumes 2012 benefits offset by higher operating costs.
 first quarter of 2014 sales volumes average sales margins expected seasonally soft.
 net sales for distribution operations were $ 285 million in 2013 compared with $ 260 million 2012 $ 285 million in 2011.
 operating profits were $ 3 million in 2013 , 2012 2011.
 printing papers demand for products correlated with changes in commercial printing advertising activity direct mail volumes uncoated cut-size products changes in white- collar employment levels affect usage of copy laser printer paper.
 pulp affected by changes in currency rates disadvantage producers geographic regions.
 principal cost drivers include manufacturing efficiency raw material energy costs freight costs.
 printing papers net sales for 2013 flat with 2012 and 2011.
 operating profits 2013 55% ( 55 % ) lower than 2012 69% ( 69 % ) lower than 2011.
 excluding facility closure costs impairment costs operating profits 2013 15% ( 15 % ) lower than 2012 40% ( 40 % ) lower than in 2011.
 benefits from lower operating costs ( $ 81 million ) lower maintenance outage costs ( $ 17 million ) offset by lower average sales price realizations ( $ 38 million ) lower sales volumes ( $ 14 million ) higher input costs ( $ 99 million ) higher other costs ( $ 34 million ).
 operating profits 2013 included costs of $ 118 million associated with announced closure of courtland , alabama mill.
2013  company accelerated depreciation for certain courtland assets evaluated other assets for possible alternative uses by other businesses.
 net book value of assets at december 31 , 2013 was approximately $ 470 million.
 2014  continued evaluation expect to conclude any uses for assets during first quarter of 2014.
 operating profits included $ 123 million impairment charge associated with goodwill trade name intangible asset in india papers business.
 operating profits in 2011 included $ 24 million gain related to repurposing of franklin , virginia mill to produce fluff pulp $ 11 million impairment charge related to inverurie, scotland mill closed in 2009.
 printing papers.
 north american printing papers net sales were $ 2. 6 billion in 2013  $ 2. 7 billion in 2012 $ 2. 8 billion in 2011.

in millions      | 2013   | 2012   | 2011
---------------- | ------ | ------ | ------
sales            | $ 6205 | $ 6230 | $ 6215
operating profit | 271    | 599    | 872


goldman sachs group , inc.
 subsidiaries notes to consolidated financial statements commercial lending.
 firm 2019s commercial lending commitments extended to investment-grade and non-investment-grade corporate borrowers.
 commitments to investment-grade corporate borrowers principally used for operating liquidity and general corporate purposes.
 firm extends lending commitments in with contingent acquisition financing other corporate lending commercial real estate financing.
 commitments extended for contingent acquisition financing often intended short-term borrowers seek to replace with other funding sources.
 sumitomo mitsui financial group , inc.
 ( smfg provides firm credit loss protection on certain approved loan commitments ( primarily investment-grade commercial lending commitments ).
 notional amount of such loan commitments was $ 25. 70 billion and $ 26. 88 billion as of december 2017 and december 2016.
 credit loss protection on loan commitments provided by smfg limited to 95% ( 95 % ) of first loss firm realizes on commitments up to maximum of approximately $ 950 million.
 subject to satisfaction certain conditions upon firm request smfg will provide protection for 70% ( ) of additional losses on such commitments up to maximum of $ 1. 13 billion of $ 550 million and $ 768 million of protection provided as of december 2017 and december 2016.
 firm uses other financial instruments to mitigate credit risks related to certain commitments not covered by smfg.
 instruments include credit default swaps reference same or similar underlying instrument or entity or credit default swaps reference market index.
 warehouse financing.
 firm provides financing to clients who warehouse financial assets.
 arrangements secured by warehoused assets primarily of retail and corporate loans.
contingent forward starting collateralized agreements / collateralized financings includes resale securities borrowing agreements financings includes repurchase secured lending agreements settle at future date generally within three business days.
 firm enters commitments to provide contingent financing to clients counterparties through resale agreements.
 firm funding of commitments depends on satisfaction of contractual conditions to resale agreement commitments can expire unused.
 letters of credit firm has commitments under letters of credit issued by banks provides to counterparties in lieu of securities or cash to satisfy collateral margin deposit requirements.
 investment commitments investment commitments includes commitments to invest in private equity  real estate other assets directly through funds firm raises manages.
 investment commitments included $ 2. 09 billion and $ 2. 10 billion as of december 2017 and december 2016  respectively related to commitments to invest in funds managed by firm.
 if commitments called funded at market value on date of investment.
 leases firm has contractual obligations under long-term noncancelable lease agreements for office space expiring through 2069.
 certain agreements subject to periodic escalation provisions for increases in real estate taxes other charges.
 table below presents future minimum rental payments  net of minimum sublease rentals.
 $ in millions december 2017.
 rent charged to operating expenses was $ 273 million for 2017  $ 244 million for 2016 $ 249 million for 2015.
 goldman sachs 2017 form 10-k 163

$ in millions     | as of december 2017
----------------- | -------------------
2018              | $ 299
2019              | 282
2020              | 262
2021              | 205
2022              | 145
2023 - thereafter | 771
total             | $ 1964


notes consolidated financial statements non-financial assets liabilities measured at fair value non-recurring basis during 2009  classified atlantic star as held for sale recognized charge of $ 7. 1 million to reduce carrying value ship to fair value less cost to sell based on firm offer received during 2009.
 amount recorded within other operating expenses in consolidated statement of operations.
 determined fair market value of atlantic star as of december 31 , 2010 based on comparable ship sales adjusted for condition  age size of ship.
 categorized inputs as level 3 based on our own assump- tions.
 as of december 31 , 2010 carrying amount of atlantic star represents fair value was $ 46. 4 million.
 table presents reconciliation of company 2019s fuel call options 2019 beginning and ending balances ( in thousands ) : fair value measurements measurements using significant unobservable year ended december 31 , 2010 inputs ( level 3 ) year ended december 31 , 2009 inputs ( level 3 ) fuel call options balance at january 1 , 2010 $ 9998 balance at january 1 , 2009 $ 2007 2007 2014 total gains or losses ( realized/ unrealized ) total gains losses ).
 amount of total gains or losses for period included in other income ( expense ) attributable to change in unrealized gains or losses relating to assets still held at reporting date $ ( 2824 ) amount of total gains or losses for period included in other income ( expense ) attributable to change in unrealized gains or losses relating to assets still held at reporting date $ ( 2538 ) fourth quarter of 2010 changed valuation technique for fuel call options to market approach method employs inputs observable.
fair value for fuel call options determined by using prevailing market price for instruments of published price quotes for similar assets based on recent transactions in active market.
 believe level 2 categorization appropriate due to increase in observability and transparency of significant inputs.
 previously derived fair value of fuel call options using standard option pricing models with inputs based on options 2019 contract terms and data available or from public market informa- tion.
 fuel call options categorized as level 3 because certain inputs , principally volatility  were unobservable.
 net transfers in and/or out of level 3 reported as occurred at end of quarter in transfer occurred ; gains or losses reflected in table above for 2010 include fourth quarter fuel call option gains or losses.
 reported fair values based on variety of factors and assumptions.
 fair values may not represent actual values of financial instru- ments and long-lived assets could have been realized as of december 31 , 2010 or december 31 , 2009 or will be realized in future do not include expenses could be incurred in actual sale or settlement.
 derivative instruments exposed to market risk attributable to changes in interest rates foreign currency exchange rates fuel prices.
 manage these risks through normal operating and financing activities and through use of derivative financial instruments hedging practices and policies.
 financial impact of hedging instruments offset by changes in under- lying exposures being hedged.
 achieve by closely matching amount  term and conditions of derivative instrument with underlying risk being hedged.
 do not hold or issue derivative financial instruments for trading or other speculative purposes.
 monitor derivative positions using techniques including market valuations and sensitivity analyses.

year ended december 31 2010 balance at january 1 2010                                                                                | fairvalue measurements using significant unobservable inputs ( level 3 ) fuel call options $ 9998 | year ended december 31 2009 balance at january 1 2009                                                                                | fairvalue measurements using significant unobservable inputs ( level 3 ) fuel call options $ 2014
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------
total gains or losses ( realized /unrealized )                                                                                |                                                                                | total gains or losses ( realized /unrealized )                                                                                |
included in other income ( expense )                                                                                | -2824 ( 2824 )                                                                                | included in other income ( expense )                                                                                | -2538 ( 2538 )
purchases issuances and settlements                                                                                | 24539                                                                                | purchases issuances and settlements                                                                                | 12536
transfers in and/or ( out ) of level 3                                                                                | -31713 ( 31713 )                                                                                | transfers in and/or ( out ) of level 3                                                                                | 2014
balance at december 31 2010                                                                                | $ 2014                                                                                | balance at december 31 2009                                                                                | $ 9998
the amount of total gains or losses for the period included in other income ( expense ) attributable to the change in unrealized gains or losses relating to assets still held at thereporting date | $ -2824 ( 2824 )                                                                                | the amount of total gains or losses for the period included in other income ( expense ) attributable to the change in unrealized gains or losses relating to assets still held atthe reporting date | $ -2538 ( 2538 )


24| 2018 emerson annual report 2017 vs.
 2016 2013 commercial residential solutions sales were $ 5. 9 billion in 2017 increase $ 302 million or 5 percent reflecting favorable conditions in hvac refrigeration markets in u. s. asia europe u. s.
 asian construction markets.
 underlying sales increased 5 percent ( $ 297 million ) 6 percent higher volume offset by 1 percent lower price.
 foreign currency translation deducted $ 20 million acquisitions added $ 25 million.
 climate technologies sales were $ 4. 2 billion in 2017 increase $ 268 million or 7 percent.
 global air conditioning sales solid led by strength in u. s.
 asia robust growth in china comparisons sales up modestly in europe declined moderately in middle east/africa.
 global refrigeration sales strong reflecting robust growth china increased adoption of energy- efficient solutions slight growth in u. s.
 sensors solutions strong growth temperature controls up modestly.
 tools home products sales were $ 1. 6 billion in 2017 up $ 34 million compared to prior year.
 professional tools strong growth on favorable demand from oil and gas customers other construction-related markets.
 wet/dry vacuums sales up moderately favorable conditions continued in u. s.
 construction markets.
 food waste disposers increased slightly storage business declined moderately.
 underlying sales increased 3 percent in u. s. 4 percent in europe 17 percent in asia ( china up 27 percent ).
 sales increased 3 percent in latin america 4 percent in canada sales decreased 5 percent in middle east/africa.
 earnings were $ 1. 4 billion increase $ 72 million driven by climate technologies margin flat.
 increased volume leverage savings from cost reduction actions lower customer accommodation costs of $ 16 million offset by higher materials costs lower price unfavorable product mix.
 financial position capital resources liquidity company substantial cash from operations resources to reinvest for growth in businesses pursue strategic acquisitions manage capital structure short- long-term.
 cash flow from continuing operations ( dollars in millions ) 2016 2017 2018.
 operating cash flow from operations for 2018 was $ 2. 9 billion  $ 202 million or 8 percent increase compared with 2017 due to higher earnings offset by increase in working capital investment higher sales activity income taxes on residential storage divestiture.
 operating cash flow from operations of $ 2. 7 billion in 2017 increased 8 percent compared to $ 2. 5 billion in 2016 reflecting higher earnings favorable changes in working capital.
 september 30  2018 operating working capital as percent of sales was 5. 7 percent compared with 6. 6 percent in 2017 5. 2 percent in 2016.
 increase in 2017 due to higher working capital in acquired valves & controls business.
 operating cash flow from operations funded capital expenditures of $ 617 million  dividends of $ 1. 2 billion  common stock purchases of $ 1. 0 billion.
 in 2018 company repatriated $ 1. 4 billion of cash by non-u.
 subsidiaries part of company plans.
 funds increased short-term borrowings divestiture proceeds supported acquisitions of $ 2. 2 billion.
 contributions to pension plans were $ 61 million in 2018 $ 45 million in 2017 $ 66 million in 2016.
 capital expenditures to operations were $ 617 million  $ 476 million $ 447 million in 2018 2017 2016.
 free cash flow from continuing operations less capital expenditures was $ 2. 3 billion in 2018 up 3 percent.
 free cash flow was $ 2. 2 billion in 2017 compared with $ 2. 1 billion in 2016.
 company targeting capital spending of approximately $ 650 million in 2019.
net cash paid with acquisitions was $ 2. 2 billion  $ 3. 0 billion $ 132 million in 2018 2017 2016.
 proceeds from divestitures discontinued operations were $ 201 million $ 39 million in 2018 2017.
 dividends were $ 1. 2 billion ( $ 1. 94 per share ) in 2018 compared with $ 1. 2 billion ( $ 1. 92 per share in 2017 $ 1. 2 billion ( $ 1. 90 per share ) in 2016.
 november 2018 board of directors increase quarterly cash dividend 1 percent to annualized rate $ 1. 96 per share.
 purchases of emerson common stock totaled $ 1. 0 billion  $ 400 million $ 601 million in 2018 2017 2016 average per share prices of $ 66. 25  $ 60. 51 $ 48. 11.
 board directors authorized purchase of up to 70 million common shares in november 2015 41. 8 million shares remain available for purchase authorization.
 company purchased 15. 1 million shares in 2018  6. 6 million shares in 2017 12. 5 million shares in 2016 under remainder may 2013 authorization.

( dollars in millions )                                          | 2016             | 2017             | 2018
---------------------------------------------------------------- | ---------------- | ---------------- | ----------------
operating cash flow                                              | $ 2499           | 2690             | 2892
percent of sales                                                 | 17.2% ( 17.2 % ) | 17.6% ( 17.6 % ) | 16.6% ( 16.6 % )
capital expenditures                                             | $ 447            | 476              | 617
percent of sales                                                 | 3.1% ( 3.1 % )   | 3.1% ( 3.1 % )   | 3.5% ( 3.5 % )
free cash flow ( operating cash flow less capital expenditures ) | $ 2052           | 2214             | 2275
percent of sales                                                 | 14.1% ( 14.1 % ) | 14.5% ( 14.5 % ) | 13.1% ( 13.1 % )
operating working capital                                        | $ 755            | 1007             | 985
percent of sales                                                 | 5.2% ( 5.2 % )   | 6.6% ( 6.6 % )   | 5.7% ( 5.7 % )


mastercard incorporated notes to consolidated financial statements 2014 in thousands except percent per share data ) company make contributions to postretirement plan other than funding benefits payments.
 table summarizes expected net benefit payments from company 2019s general assets through 2018 : benefit payments subsidy receipts benefit payments.
 company provides limited postemployment benefits to eligible former.
 employees primarily severance under formal severance plan ( 201cseverance plan 201d ).
 company accounts for severance expense in accordance with sfas no.
 112 , 201cemployers 2019 accounting for postemployment benefits 201d by accruing expected cost of severance benefits to former employees after employment over relevant service periods.
 company updates assumptions determining severance accrual by evaluating actual severance activity and long-term trends underlying assumptions.
 company recorded severance expense ( benefit ) related to severance plan of $ 2643 , $ ( 3418 ) and $ 8400  during years 2008 , 2007 and 2006.
 company accrued liability related to severance plan and other severance obligations in amount of $ 63863 and $ 56172 at december 31 , 2008 and 2007 .
 13.
 debt on april 28 , 2008  company extended committed unsecured revolving credit facility dated as of april 28 , 2006 ( 201ccredit facility 201d ) for additional year.
 new expiration date of credit facility is april 26 , 2011.
 available funding under credit facility remain at $ 2500000 through april 27 , 2010 decrease to $ 2000000 during final year of credit facility agreement.
 other terms and conditions in credit facility remain unchanged.
 company 2019s option to request each lender under credit facility extend commitment provided pursuant to original terms of credit facility agreement.
borrowings under facility available to provide liquidity in settlement failures by mastercard international customers subject to limit of $ 500000  for general corporate purposes.
 facility fee of 8 basis points on total commitment  or approximately $ 2030  paid annually.
 interest on borrowings credit facility charged at london interbank offered rate ( libor ) plus applicable margin of 37 basis points or alternative base rate utilization fee of 10 basis points charged if outstanding borrowings exceed 50% ( % ) of commitments.
 facility fee and borrowing cost contingent upon company 2019s credit rating.
 company agreed to pay upfront fees of $ 1250 administrative fees of $ 325 for credit facility amortized straight- line over three years.
 facility other fees credit facility prior facilities totaled $ 2353 , $ 2477 and $ 2717 for each years ended december 31, 2008 , 2007 2006 .
 mastercard in compliance with covenants credit facility had no borrowings under credit facility at december 31, 2008 or december 31 , 2007.
 majority of credit facility lenders are customers or affiliates of customers of mastercard international.
 in june 1998  mastercard international issued ten-year unsecured , subordinated notes ( 201d ) paying fixed interest rate of 6. 67% ( 6. 67 % ) per annum.
 mastercard repaid entire principal amount of $ 80000 on june 30

| benefit payments | expected subsidy receipts | net benefit payments
-------------- | ---------------- | ------------------------- | --------------------
2009           | $ 2641           | $ 77                      | $ 2564
2010           | 3139             | 91                        | 3048
2011           | 3561             | 115                       | 3446
2012           | 3994             | 140                       | 3854
2013           | 4357             | 169                       | 4188
2014 2013 2018 | 25807            | 1269                      | 24538


| 2009  | 2010  | 2011  | 2012  | 2013  | 2014
------------------------ | ----- | ----- | ----- | ----- | ----- | -----
state street corporation | $ 100 | $ 107 | $ 114 | $ 101 | $ 120 | $ 190
s&p 500 index            | 100   | 115   | 132   | 135   | 157   | 208
s&p financial index      | 100   | 112   | 126   | 104   | 135   | 183
kbw bank index           | 100   | 123   | 152   | 117   | 153   | 211


analog devices , inc.
 notes to consolidated financial statements 2014 schedule of future minimum rental payments required under long-term operating leases at october 31 , operating fiscal years leases.
 12.
 commitments and contingencies time to  in ordinary course of company 2019s business  claims , charges litigation asserted or commenced against company from related to contractual matters  patents  trademarks personal injury  environmental matters product liability  insurance coverage personnel and employment disputes.
 company can give no assurance that it will prevail.
 company does not believe current legal matters material adverse effect on company 2019s financial position  results of operations or cash flows.
 13.
 retirement plans company and subsidiaries have savings and retirement plans covering all employees.
 company maintains defined contribution plan for benefit of eligible u. s.
 employees.
 plan provides for company contributions of up to 5% ( 5 % ) of each participant 2019s total eligible compensation.
 company contributes amount equal to each participant 2019s pre-tax contribution up to maximum of 3% ( 3 % ) of each participant 2019s total eligible compensation.
 total expense related to defined contribution plan for u. s.
 employees was $ 26. 3 million in fiscal 2015  $ 24. 1 million in fiscal 2014 $ 23. 1 million in fiscal 2013.
 company has various defined benefit pension and other retirement plans for certain non-u. s.
 employees consistent with local statutory requirements practices.
 total expense related to defined benefit pension retirement plans for certain non-u.
 employees excluding settlement charges related to company defined benefit plan was $ 33. 3 million in fiscal 2015 , $ 29. 8 million in fiscal 2014 $ 26. 5 million in fiscal 2013.
 non-u. s.
plan disclosures during fiscal 2015  company converted benefits to participants in company 2019s irish defined benefits pension plan ( db plan ) to benefits under company 2019s irish defined contribution plan.
 in fiscal 2015 company recorded expenses of $ 223. 7 million  including settlement charges  legal  accounting professional fees to settle pension obligation.
 assets related to db plan liquidated used to purchase annuities for retirees distributed to active and deferred members' accounts in company's irish defined contribution plan plan conversion.
 plan assets for db plan were zero as of end of fiscal 2015.
 company 2019s funding policy for foreign defined benefit pension plans consistent with local requirements of each country.
 plans 2019 assets consist primarily of.
 non-u.
 equity securities , bonds  property cash.
 benefit obligations and related assets under plans measured at october 31 , 2015 and november 1, 2014.
 components of net periodic benefit cost net annual periodic pension cost of non-u. s.
 plans presented in following table:

fiscal years | operating leases
------------ | ----------------
2016         | $ 21780
2017         | 16305
2018         | 8670
2019         | 4172
2020         | 3298
later years  | 5263
total        | $ 59488


mastercard incorporated notes to consolidated financial statements 2014 ( continued ) ( in thousands , except percent and per share data ) upon termination of employment excluding retirement all participant 2019s unvested awards forfeited.
 when participant terminates employment due to retirement  participant generally retains all awards without providing additional service to company.
 eligible retirement dependent upon age and years of service : age 55 with ten years service 60 with five years service age 65 with two years of service.
 compensation expense recognized over shorter of vesting periods stated in ltip  or date individual becomes eligible to retire.
 11550 shares of class a common stock reserved for equity awards under ltip.
 ltip permits issuance of shares of class b common stock  no such shares reserved for issuance.
 shares issued as result of option exercises conversions of rsus expected to be funded with issuance of new shares of class a common stock.
 stock options fair value of each option estimated on date of grant using black-scholes option pricing model.
 following table presents weighted-average assumptions in valuation resulting weighted- average fair value per option granted for years ended december 31:.
 risk-free rate of return based on u. s.
 treasury yield curve in effect on date of grant.
 company utilizes simplified method for calculating expected term of option based on vesting terms and contractual life of option.
 expected volatility for options granted during 2009 based on average of implied volatility of mastercard and blend of historical volatility of mastercard historical volatility of group of companies management believes generally comparable to mastercard.
 expected volatility for options granted during 2008 based on average of implied volatility of mastercard and historical volatility of group of companies management believes generally comparable to mastercard.
company not have sufficient publicly traded stock data historically , expected volatility for options granted during 2007 primarily based on average of historical and implied volatility of group of companies management believed comparable to mastercard.
 expected dividend yields based on company 2019s expected annual dividend rate on date of grant.

| 2009             | 2008             | 2007
---------------------------------------------- | ---------------- | ---------------- | ----------------
risk-free rate of return                       | 2.5% ( 2.5 % )   | 3.2% ( 3.2 % )   | 4.4% ( 4.4 % )
expected term ( in years )                     | 6.17             | 6.25             | 6.25
expected volatility                            | 41.7% ( 41.7 % ) | 37.9% ( 37.9 % ) | 30.9% ( 30.9 % )
expected dividend yield                        | 0.4% ( 0.4 % )   | 0.3% ( 0.3 % )   | 0.6% ( 0.6 % )
weighted-average fair value per option granted | $ 71.03          | $ 78.54          | $ 41.03


table details effect on net income earnings per share compensation expense for stock-based awards including stock options recorded in year ended december 31 , 2005 based on fair value method under fasb statement no.
 123 , accounting for stock-based compensation.
 pro forma stock-based compensation expense millions of dollars except per share amounts 2005.
 stock options for executives granted in 2003 and 2002 included reload feature.
 allowed executives to exercise options using shares of union pacific corporation common stock already owned obtain new grant of options in amount shares used for exercise plus shares withheld for tax purposes.
 reload feature option grants only exercised if price of common stock increased at least 20% ( 20 % ) from price at time of reload grant.
 during year ended december 31 , 2005 reload option grants represented $ 19 million of pro forma expense noted.
 no reload option grants during 2007 and 2006 stock options exercised after january 1, 2006 not eligible for reload feature.
 earnings per share 2013 earnings calculated on weighted-average number of common shares outstanding during each period.
 diluted earnings per share include shares issuable upon exercise of outstanding stock options stock-based awards where conversion of instruments dilutive.
 use of estimates 2013 consolidated financial statements include estimates assumptions regarding certain assets  liabilities revenue expenses disclosure of contingent assets liabilities.
 actual future results may differ from estimates.
 income taxes 2013 as required under fasb statement no.
 109  accounting for income taxes account for income taxes by recording taxes payable or refundable for current year and deferred tax assets liabilities for expected future tax consequences of events recognized in financial statements or tax returns.
expected future tax consequences measured based on provisions of tax law currently enacted ; effects of future changes in tax laws not anticipated.
 future tax law changes change in corporate tax rate could impact on our financial condition or results of operations.
 when appropriate record valuation allowance against deferred tax assets to offset future tax benefits not be realized.
 determining valuation allowance appropriate consider more likely than not all or some portion of deferred tax assets not be realized based on management judgments regarding best available evidence about future events.
 claimed tax benefits may be challenged by tax authority uncertain tax positions accounted for under fasb interpretation no.
 48  accounting for uncertainty in income taxes interpretation of fasb statement no.
 109 ( fin 48 ).
 adopted fin 48 beginning january 1 , 2007.
 prior to 2007 income tax contingencies accounted for under fasb statement no.
 5  accounting for contingencies.
 under fin 48  recognize tax benefits only for tax positions more likely than not to be sustained upon examination by tax authorities.
 amount recognized measured as largest amount of benefit greater than 50 percent likely to be realized upon settlement.
 liability for 201cunrecognized tax benefits 201d is

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


portion death benefits directly from insurance company company receives remainder of death benefits.
 expected minimal cash payments required to fund these policies.
 net periodic pension cost for split-dollar life insurance arrangements was $ 5 million for years ended december 31 , 2013 , 2012 and 2011.
 company recorded liability representing actuarial present value of future death benefits as of employees 2019 expected retirement date of $ 51 million and $ 58 million as of december 31, 2013 and december 31 , 2012 .
 deferred compensation plan company amended and reinstated deferred compensation plan ( 201cthe plan 201d ) effective june 1, 2013 to reopen plan to certain participants.
 under plan participating executives may elect to defer base salary and cash incentive compensation in excess of 401 ( k ) plan limitations.
 participants plan may choose to invest deferred amounts in same investment alternatives available under company's 401 ( k ) plan.
 plan allows for company matching contributions for first 4% ( 4 % ) of compensation deferred under plan to maximum of $ 50000 for board officers ii lost matching amounts made under 401 ( k ) plan if participants not participated in plan iii ) discretionary amounts as approved by compensation and leadership committee of board of directors.
 defined contribution plan company and certain subsidiaries have various defined contribution plans all eligible employees may participate.
. 401 ( k ) plan is contributory plan.
 matching contributions based upon employees 2019 contributions.
 company 2019s expenses for material defined contribution plans for years ended december 31 , 2013 , 2012 and 2011 were $ 44 million , $ 42 million and $ 48 million , respectively.
 beginning january 1 , 2012  company may make additional discretionary 401 ( k ) plan matching contribution to eligible employees.
years ended december 31 , 2013 2012 , company made no discretionary matching contributions.
.
 share-based compensation plans incentive plans stock options stock appreciation rights employee stock purchase plan company grants options to acquire shares common stock to certain employees existing option holders of acquired companies with merging of option plans following acquisition.
 each option granted stock appreciation right has exercise price no less than 100% ( % ) of fair market value of common stock on date of grant.
 awards have contractual life of five to fifteen years vest over two to four years.
 stock options stock appreciation rights assumed or replaced with comparable stock options stock appreciation rights with change in control company only become exercisable if holder involuntarily terminated or quits for good reason within 24 months of change in control.
 employee stock purchase plan allows eligible participants to purchase shares company 2019s common stock through payroll deductions of up to 20% ( 20 % ) of eligible compensation after-tax basis.
 plan participants cannot purchase more than $ 25000 of stock in any calendar year.
 price employee pays per share is 85% ( 85 % ) of lower fair market value of company 2019s stock on close of first trading day or last trading day of purchase period.
 plan has two purchase periods first from october 1 through march 31 second from april 1 through september 30.
 years ended december 31, 2013 , 2012 2011  employees purchased 1. 5 million , 1. 4 million 2. 2 million shares  at purchase prices of $ 43. 02 and $ 50. 47 , $ 34. 52 $ 42. 96 , $ 30. 56 and $ 35. 61 .
 company calculates value of each employee stock option estimated on date of grant using black-scholes option pricing model.
weighted-average estimated fair value of employee stock options granted during 2013 2012 2011 was $ 9. 52 , $ 9. 60 $ 13. 25  respectively using weighted-average assumptions:.
 company uses implied volatility for traded options on company 2019s stock as expected volatility assumption required in black-scholes model.
 selection of implied volatility approach based upon availability of

| 2013             | 2012             | 2011
----------------------- | ---------------- | ---------------- | ----------------
expected volatility     | 22.1% ( 22.1 % ) | 24.0% ( 24.0 % ) | 28.8% ( 28.8 % )
risk-free interest rate | 0.9% ( 0.9 % )   | 0.8% ( 0.8 % )   | 2.1% ( 2.1 % )
dividend yield          | 2.4% ( 2.4 % )   | 2.2% ( 2.2 % )   | 0.0% ( 0.0 % )
expected life ( years ) | 5.9              | 6.1              | 6.0


stock performance graph comcast graph compares yearly percentage change in cumulative total shareholder return on comcast 2019s class common stock during five years ended december 31 , 2015 with cumulative total returns on standard & poor 2019s 500 stock index select peer group us and other companies in cable , communications media industries.
 peer group consists of us  cablevision systems corporation ( class a ) dish network corporation ( class a ) directv inc.
 ( included through july 24 , 2015 date of acquisition by at&t corp. time warner cable inc.
 201ccable subgroup 201d ) time warner. walt disney company  viacom inc.
 class b ) twenty-first century fox , inc.
 class a ) cbs corporation ( class b ) ( 201cmedia subgroup 201d ).
 peer group composite peer group cable subgroup weighted 63% ( 63 % ) media subgroup weighted 37% ( 37 % ) based on respective revenue of cable communications and nbcuniversal segments.
 graph assumes $ 100 invested on december 31 , 2010 in our class a common stock in each following indices assumes reinvestment of dividends.
 comparison of 5 year cumulative total return 12/1412/1312/1212/10 12/15 comcast class a s&p 500 peer group index.
 nbcuniversal nbcuniversal is wholly owned subsidiary of nbcuniversal holdings no market for its equity securities.
 39 comcast 2015 annual report on form 10-k

| 2011  | 2012  | 2013  | 2014  | 2015
------------------- | ----- | ----- | ----- | ----- | -----
comcast class a     | $ 110 | $ 177 | $ 250 | $ 282 | $ 279
s&p 500 stock index | $ 102 | $ 118 | $ 156 | $ 177 | $ 180
peer group index    | $ 110 | $ 157 | $ 231 | $ 267 | $ 265


goldman sachs group  inc.
 subsidiaries management 2019s discussion analysis sensitivity measures certain portfolios individual positions not included in var var not most appropriate risk measure.
 other sensitivity measures market risk described below.
 10% ( 10 % ) sensitivity measures.
 table below presents market risk for positions accounted for at fair value not included in var by asset category.
 table 2030 market risk of positions determined by estimating potential reduction in net revenues of 10% ( 10 % ) decline in value positions.
 2030 equity positions relate to private restricted public equity securities interests in funds invest in corporate equities real estate interests hedge funds.
 2030 debt positions include interests in funds invest in corporate mezzanine senior debt instruments loans backed by commercial residential real estate corporate bank loans other corporate debt acquired portfolios of distressed loans.
 2030 equity debt funded positions included in consolidated statements of financial condition financial instruments owned.
 see note 6 to consolidated financial statements for further information about cash instruments.
 2030 measures not reflect diversification effect across asset categories or other market risk measures.
 credit spread sensitivity on derivatives financial liabilities.
 var excludes impact of changes in counterparty our own credit spreads on derivatives changes our own credit spreads debt valuation adjustment ) on financial liabilities for fair value option elected.
 estimated sensitivity to one basis point increase in credit spreads ( counterparty own ) on derivatives was gain of $ 3 million and $ 2 million ( including hedges ) as of december 2017 and december 2016 .
estimated sensitivity to one basis point increase in our credit spreads on financial liabilities for fair value option elected was gain of $ 35 million and $ 25 million as of december 2017 and december 2016 .
 actual net impact of change in credit spreads is affected by liquidity duration convexity ( sensitivity not linear to changes in yields ) of financial liabilities for fair value option elected relative performance of hedges undertaken.
 interest rate sensitivity.
 loans receivable as of december 2017 and december 2016 were $ 65. 93 billion and $ 49. 67 billion  respectively substantially all had floating interest rates.
 as of december 2017 and december 2016  estimated sensitivity to a 100 basis point increase in interest rates on such loans was $ 527 million and $ 405 million  of additional interest income over twelve-month period not account potential impact of increase in costs to fund such loans.
 see note 9 to consolidated financial statements for information about loans receivable.
 other market risk considerations as of december 2017 and december 2016 we had commitments and held loans for obtained credit loss protection from sumitomo mitsui financial group  inc.
 see note 18 to consolidated financial statements for information about lending commitments.
 we make investments in securities accounted for as available-for-sale included in financial instruments owned in consolidated statements of financial condition.
 see note 6 to consolidated financial statements for further information.
 also make investments accounted for under equity method and direct investments in real estate both included in other assets.
 direct investments in real estate accounted for at cost less accumulated depreciation.
 see note 13 to consolidated financial statements for information about other assets.
 goldman sachs 2017 form 10-k 93

$ in millions | as of december 2017 | as of december 2016 | as of december 2015
------------- | ------------------- | ------------------- | -------------------
equity        | $ 2096              | $ 2085              | $ 2157
debt          | 1606                | 1702                | 1479
total         | $ 3702              | $ 3787              | $ 3636


reinsurance commissions  fees revenue decreased 2% ( 2 % ) in 2014 reflecting 1% ( 1 % ) unfavorable impact from foreign currency exchange rates 1% ( 1 % ) decline in organic revenue growth due to significant unfavorable market impact in treaty offset by net new business growth in treaty placements globally growth in capital markets transactions advisory business  facultative placements.
 operating income increased $ 108 million  or 7% ( 7 % )  from 2013 to $ 1. 6 billion in 2014.
 2014 operating income margins segment were 21. 0% ( 21. 0 % ) increase of 120 basis points from 19. 8% (. 8 % ) in 2013.
 operating margin improvement driven by solid organic revenue growth  return on investments expense discipline savings related to restructuring programs offset by $ 61 million unfavorable impact from foreign currency exchange rates.
 hr solutions.
 segment generated 35% ( 35 % ) of consolidated total revenues in 2014 provides broad range of human capital services 2022 retirement specializes in global actuarial services defined contribution consulting tax erisa consulting pension administration.
 2022 compensation focuses on compensatory advisory/counsel compensation planning design executive reward strategies salary survey benchmarking market share studies sales force effectiveness special expertise in financial services technology industries.
 2022 strategic human capital delivers advice to complex global organizations on talent  change organizational effectiveness issues including talent strategy acquisition executive on-boarding performance management leadership assessment development communication strategy workforce training change management.
 2022 investment consulting advises public private companies institutions trustees on developing maintaining investment programs across broad range of plan types including defined benefit plans defined contribution plans  endowments foundations.
2022 benefits administration applies our human resource expertise through defined benefit ( pension ) , defined contribution ( 401 ( k ) )  health and welfare administrative services.
 our model replaces resource-intensive processes to administer benefit plans with more efficient , effective less costly solutions.
 2022 exchanges building and operating healthcare exchanges provide employers with cost effective alternative to traditional employee and retiree healthcare  helping individuals select insurance best meets their needs.
 2022 human resource business processing outsourcing provides market-leading solutions to manage employee data ; administer benefits , payroll other human resources processes ; record and manage talent , workforce other core human resource process transactions other complementary services such as flexible spending , dependent audit participant advocacy.
 disruption in global credit markets deterioration of financial markets created significant uncertainty in marketplace.
 weak economic conditions in many markets continued throughout 2014 adversely impacted our clients' financial condition levels of business activities in industries geographies where we operate.
 while believe majority of practices well positioned to manage through this time , challenges reducing demand for our services putting pressure on pricing services adverse effect on our new business and results of operations.

years ended december 31 | 2014             | 2013           | 2012
----------------------- | ---------------- | -------------- | --------------
revenue                 | $ 4264           | $ 4057         | $ 3925
operating income        | 485              | 318            | 289
operating margin        | 11.4% ( 11.4 % ) | 7.8% ( 7.8 % ) | 7.4% ( 7.4 % )


third quarter ended 30 june 2017 recognized goodwill impairment charge $ 145. 3 intangible asset impairment charge $ 16. 8 associated with lasa reporting unit.
 refer to note 11  goodwill  note 12  intangible assets  for more information related charges associated fair value measurement methods significant inputs/assumptions classified as level 3 since unobservable inputs utilized in fair value measurements.
 16.
 debt tables summarize outstanding debt at 30 september 2019 and 2018 : total debt.
 fiscal year 2019 includes current portion long-term debt owed to related party $ 37. 8.
 b refer to note 7, acquisitions , for additional information related party debt.
 short-term borrowings consisted bank obligations of $ 58. 2 and $ 54. 3 at 30 september 2019 2018  respectively.
 weighted average interest rate of short-term borrowings outstanding at 30 september 2019 2018 3. 7% ( 3. 7 % ) and 5. 0% ( 5. 0 % )  respectively.

30 september                                  | 2019     | 2018
--------------------------------------------- | -------- | --------
short-term borrowings                         | $ 58.2   | $ 54.3
current portion of long-term debt ( a ) ( b ) | 40.4     | 406.6
long-term debt                                | 2907.3   | 2967.4
long-term debt 2013 related party ( b )       | 320.1    | 384.3
total debt                                    | $ 3326.0 | $ 3812.6


notes to consolidated financial statements union pacific corporation subsidiary companies for this report  unless context otherwise requires references to 201ccorporation 201d , 201cupc 201d , 201cwe 201d  201cus 201d  201cour 201d mean union pacific corporation subsidiaries  including union pacific railroad company  separately referred to as 201cuprr 201d or 201crailroad 201d.
 1.
 nature of operations operations segmentation 2013 we are class i railroad operates in u. s.
 31953 route miles  linking pacific coast gulf coast ports with midwest eastern u. s.
 gateways providing several corridors to key mexican gateways.
 serve western two-thirds of country maintain coordinated schedules with other rail carriers for handling of freight to from atlantic coast  pacific coast southeast southwest  canada  mexico.
 export and import traffic moved through gulf coast pacific coast ports across mexican canadian borders.
 railroad , with subsidiaries rail affiliates is our one reportable operating segment.
 revenues analyzed by commodity group analyze net financial results of railroad as one segment due to integrated nature of rail network.
 following table provides revenue by commodity group : millions 2010 2009 2008.
 revenues principally derived from customers domiciled in u. s. , ultimate points of origination or destination for some products transported outside u. s.
 basis of presentation 2013 consolidated financial statements presented in accordance with accounting principles generally accepted in u. s.
 ( gaap ) as codified in financial accounting standards board ( fasb ) accounting standards codification ( asc ).
 2.
accounting policies principles consolidation 2013 consolidated financial statements include accounts of union pacific corporation subsidiaries.
 investments in affiliated companies ( 20% ( 20 % ) to 50% ( 50 % ) owned ) accounted for using equity method accounting.
 intercompany transactions eliminated.
 no less than majority-owned investments require consolidation under variable interest entity requirements.
 cash cash equivalents 2013 cash equivalents consist investments with original maturities three months or less.
 accounts receivable 2013 includes receivables reduced by allowance for doubtful accounts.
 allowance based upon historical losses credit worthiness customers current economic conditions.
 receivables not expected collected in one year associated allowances classified as other assets in consolidated statements financial position.
 investments 2013 investments represent investments in affiliated companies ( 20% 20 % ) to 50% ( 50 % ) owned ) accounted for under equity method accounting investments in companies less than 20% ( 20 % ) owned ) accounted for under cost method accounting.

millions                 | 2010    | 2009    | 2008
------------------------ | ------- | ------- | -------
agricultural             | $ 3018  | $ 2666  | $ 3174
automotive               | 1271    | 854     | 1344
chemicals                | 2425    | 2102    | 2494
energy                   | 3489    | 3118    | 3810
industrial products      | 2639    | 2147    | 3273
intermodal               | 3227    | 2486    | 3023
total freight revenues   | $ 16069 | $ 13373 | $ 17118
other revenues           | 896     | 770     | 852
total operating revenues | $ 16965 | $ 14143 | $ 17970


korea engineering plastics co. , ltd.
 founded 1987 kepco leading producer of pom in south korea.
 venture between celanese's ticona business ( 50% ( 50 % ) ) mitsubishi gas chemical company , inc.
 ( 40% ( 40 % ) ) mitsubishi corporation ( 10% ( 10 % ) ).
 kepco has polyacetal production facilities in ulsan south korea compounding facilities for pbt and nylon in pyongtaek  south korea participates with polyplastics mitsubishi gas chemical company  inc.
 in world-scale pom facility in nantong , china.
 polyplastics co. , ltd.
 polyplastics leading supplier of engineered plastics in asia-pacific region venture between daicel chemical industries ltd. japan ( 55% ( 55 % ) ) celanese's ticona business ( 45% ( 45 % ) ).
 established 1964 polyplastics producer marketer of pom and lcp in asia-pacific region principal production facilities in japan taiwan malaysia china.
 fortron industries llc.
 fortron leading global producer of polyphenylene sulfide ( 201cpps 201d ) sold under fortron ae brand used in automotive other applications especially requiring heat chemical resistance.
 established 1992 fortron limited liability company members are ticona fortron inc.
 ( 50% ( 50 % ) ownership wholly-owned subsidiary of cna holdings  llc ) kureha corporation ( 50% ( 50 % ) ownership wholly-owned subsidiary of kureha chemical industry co. ltd.
 japan.
 fortron's facility in wilmington , north carolina.
 venture combines sales  marketing distribution compounding manufacturing expertise of celanese with pps polymer technology expertise of kureha.
china acetate strategic ventures.
 hold approximate 30% ) ownership interest in three separate acetate production ventures in china.
 include nantong cellulose fibers co.
 ltd. kunming cellulose fibers co.
 ltd.
 zhuhai cellulose fibers co.
 ltd.
 china national tobacco corporation  chinese state-owned tobacco entity controls remaining ownership interest in each ventures.
 estimated 30% ( 30 % ) share of world's cigarette production and consumption china is world's largest fastest growing area for acetate tow products according to 2009 stanford research institute international chemical economics handbook.
 these ventures leader in chinese domestic acetate production positioned to supply chinese cigarette producers.
 december 2009 announced plans with china national tobacco to expand acetate flake and tow capacity at venture's nantong facility received formal approval for expansions each by 30000 tons during 2010.
 since inception 1986 china acetate ventures completed 12 expansions leading to earnings growth increased dividends.
 chinese acetate ventures fund operations using operating cash flow.
 during 2011  made contributions of $ 8 million to capacity expansions in nantong committed contributions of $ 9 million in 2012.
 2010 made contributions of $ 12 million.
 chinese acetate ventures pay dividend in second quarter of each fiscal year based on ventures' performance for preceding year.
 in 2011  2010 2009  received cash dividends of $ 78 million , $ 71 million and $ 56 million.
our ownership interest in china acetate ventures exceeds 20% ( 20 % ) , we account for investments using cost method of accounting determined exercise significant influence over entities due to local government investment influence limitations on involvement in day-to-day operations present inability of entities to provide timely financial information in accordance with accepted accounting principles in united states ( 201cus gaap 201d ).
 2022 other equity method investments infraservs.
 hold indirect ownership interests in several infraserv groups in germany own develop industrial parks provide on-site general administrative support to tenants.
 table below represents our equity investments in infraserv ventures as of december 31 , 2011:.

| ownership % (  % )
--------------------------------- | ------------------
infraserv gmbh & co . gendorf kg  | 39
infraserv gmbh & co . knapsack kg | 27
infraserv gmbh & co . hoechst kg  | 32


common stock from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws legal requirements subject to stock price  business and market conditions other factors.
 funding and expect to continue to fund stock repurchases through combination cash on hand and cash generated by operations.
 in future may choose to fund stock repurchase program under revolving credit facility or future financing transactions.
 no repurchases of series a and b common stock during three months ended december 31 , 2013.
 company first announced stock repurchase program on august 3 , 2010.
 stock performance graph graph sets cumulative total shareholder return on series a common stock , series b common stock series c common stock compared with cumulative total return of companies in standard and poor 2019s 500 stock index ( 201cs&p 500 index 201d ) and peer group of companies of cbs corporation class b common stock  scripps network interactive , inc. time warner , inc. twenty-first century fox , inc.
 class a common stock news to june 2013 viacom , inc.
 class b common stock walt disney company.
 graph assumes $ 100 originally invested on december 31 , 2008 in each of our series a common stock , series b common stock and series c common stock , s&p 500 index  and stock of peer group companies including reinvestment of dividends for years ended december 31 , 2009 , 2010 , 2011 , 2012 and 2013.
 december 31 , december 31 ,.
equity compensation plan information regarding securities authorized for issuance under set in our definitive proxy statement for 2014 annual meeting of stockholders under caption 201csecurities authorized for issuance under equity compensation plans , 201d incorporated herein by reference.

| december 312008 | december 312009 | december 312010 | december 312011 | december 312012 | december 312013
---------- | --------------- | --------------- | --------------- | --------------- | --------------- | ---------------
disca      | $ 100.00        | $ 216.60        | $ 294.49        | $ 289.34        | $ 448.31        | $ 638.56
discb      | $ 100.00        | $ 207.32        | $ 287.71        | $ 277.03        | $ 416.52        | $ 602.08
disck      | $ 100.00        | $ 198.06        | $ 274.01        | $ 281.55        | $ 436.89        | $ 626.29
s&p 500    | $ 100.00        | $ 123.45        | $ 139.23        | $ 139.23        | $ 157.90        | $ 204.63
peer group | $ 100.00        | $ 151.63        | $ 181.00        | $ 208.91        | $ 286.74        | $ 454.87


z i m m e r h o l d i n g s , i n.
 a n d s u b s i d i a r i e s 2 0 0 4 f o r m 1 0 - k notes to consolidated financial statements ) company and implex operating since 2000  table summarizes estimated fair values development distribution of reconstructive assets acquired liabilities assumed at date of implant and trauma products incorporating trabecular metal implex acquisition : ( in millions ) technology.
 merger agreement contains provisions for additional april 23, 2004annual cash earn-out payments based on year-over- current assets $ 23. 1year sales growth through 2006 of certain products.
 estimates total earn-out payments including payments core technology ( 30 year useful life ). range from $ 120 to $ 160 million.
 developed technology ( 30 year useful life ) 103. 9 other assets 14. earn-out payments represent contingent consideration goodwill 61. with sfas no.
 141 eitf 95-8 2018 2018accounting for contingent consideration to total assets acquired 210. 5 shareholders of acquired enterprise purchase current liabilities 14. deferred taxes 43. 3business combination 2019 recorded as additional cost of transaction upon resolution of contingency total liabilities assumed 57. 4 increase goodwill.
 net assets acquired $ 153. implex acquisition accounted for under purchase method of accounting sfas no.
 141.
.
 change accounting principle implex results of operations included in company 2019s consolidated results of operations instruments hand held devices used by orthopaedic subsequent to april 23 , 2004  respective assets surgeons during total joint replacement other surgical liabilities recorded at estimated fair values in procedures.
effective january 1 , 2003  instruments are company 2019s consolidated statement of financial position recognized as long-lived assets included in property  of april 23 , 2004  excess purchase price being plant and equipment.
 undeployed instruments carried at allocated to goodwill.
 pro forma financial information not cost  net of allowances for obsolescence.
 instruments in included as acquisition not have material field carried at cost less accumulated depreciation.
 impact company 2019s financial position results of depreciation computed using straight-line method operations or cash flows.
 based on average estimated useful lives company completed preliminary purchase price in reference to associated product life cycles allocation in accordance with.
 accepted primarily five years.
 accordance with sfas no.
 144  accounting principles.
 process included interviews with company reviews instruments for impairment management  review of economic and competitive events or changes in circumstances indicate carrying environment examination of assets including historical value of asset may not be recoverable.
 impairment loss performance and future prospects.
 preliminary purchase recognized when estimated future cash flows price allocation based on information available to asset less than its carrying amount.
 company expectations assumptions depreciation of instruments recognized as selling  reasonable by company 2019s management.
 no assurance and administrative expense  consistent with classification underlying assumptions used to of instrument cost in periods prior to january 1 , 2003.
 estimate expected technology based product revenues  prior to january 1 , 2003 undeployed instruments were development costs or profitability  events associated carried as prepaid expense at cost  net of allowances for with such technology  occur as projected.
 final obsolescence ( $ 54.8 million , net , at december 31 , 2002 )  purchase price allocation may vary from preliminary recognized in selling , general administrative expense in purchase price allocation.
 final valuation and associated year instruments placed into service.
 purchase price allocation expected to be completed as new method of accounting for instruments adopted soon no later than one year from date of recognize cost of important assets of acquisition.
 extent estimates need to be company 2019s business within consolidated balance sheet adjusted company will.
 allocate cost of assets over periods benefited typically five years.
 effect of change during year ended december 31, 2003 to increase earnings before cumulative effect of change in accounting principle by $ 26. 8 million ( $ 17. 8 million net of tax )  or $ 0. 08 per diluted share.
 cumulative effect adjustment of $ 55. 1 million ( net of income taxes of $ 34. 0 million ) to retroactively apply

| as of april 23 2004
-------------------------------------------- | -------------------
current assets                               | $ 23.1
property plant and equipment                 | 4.5
intangible assets subject to amortization:   |
core technology ( 30 year useful life )      | 3.6
developed technology ( 30 year useful life ) | 103.9
other assets                                 | 14.4
goodwill                                     | 61.0
total assets acquired                        | 210.5
current liabilities                          | 14.1
deferred taxes                               | 43.3
total liabilities assumed                    | 57.4
net assets acquired                          | $ 153.1


table of contents march 2008  fasb issued sfas no.
 161 , disclosures about derivative instruments hedging activities 2014an amendment of fasb statement no.
 133  requires companies provide additional disclosures about objectives strategies for using derivative instruments derivative instruments related hedged items accounted for under sfas no.
 133  accounting for derivative instruments hedging activities related interpretations derivative instruments items affect company 2019s financial statements.
 sfas no.
 161 requires companies disclose information about credit risk-related contingent features in hedged positions.
 sfas no.
 161 effective for fiscal years interim periods after november 15, 2008 required to be adopted by company second quarter of fiscal 2009.
 company continue evaluate application of sfas no.
 161  management not believe adoption material impact on company 2019s financial condition or operating results.
 liquidity capital resources table presents selected financial information statistics for three fiscal years ended september 27 , 2008 ( in millions ) : as of september 27 , 2008  company had $ 24. 5 billion in cash  cash equivalents  short-term investments increase of $ 9. 1 billion from september 29 , 2007.
 principal components of net increase were cash generated by operating activities $ 9. 6 billion  proceeds from issuance of common stock under stock plans $ 483 million excess tax benefits from stock-based compensation of $ 757 million.
 increases partially offset by payments for acquisitions of property , plant  equipment of $ 1. 1 billion  payments connection with business acquisitions , net of cash acquired , $ 220 million payments for acquisitions of intangible assets of $ 108 million.
company 2019s cash by operating activities exceeded net income due to large increase in deferred revenue  net deferred costs with subscription accounting for iphone.
 company 2019s short-term investment portfolio invested primarily in highly rated securities with minimum rating of single-a.
 as of september 27 , 2008 and september 29 , 2007 , $ 11. 3 billion and $ 6. 5 billion  respectively of company 2019s cash cash equivalents short- term investments held by foreign subsidiaries generally based in u. s.
 dollar-denominated holdings.
 company had $ 117 million in net unrealized losses on investment portfolio related to investments with maturities one to five years  as of september 27, 2008  net unrealized losses of approximately $ 11 million on portfolio maturities one to five years  as of september 29 , 2007.
 company has intent and ability to hold such investments for sufficient period time for recovery of principal amounts invested.
 none these declines in fair value recognized in company 2019s statement of operations.
 company believes existing balances of cash cash equivalents short-term investments will sufficient to satisfy working capital needs capital expenditures outstanding commitments liquidity requirements existing operations over next 12 months.
 capital assets company 2019s cash payments for capital asset purchases were $ 1. 1 billion during 2008  $ 389 million for retail store facilities and $ 702 million for real estate acquisitions and corporate infrastructure information systems enhancements.
 company anticipates utilizing approximately $ 1. 5 billion for capital asset purchases during 2009  including approximately $ 400 million for retail facilities and approximately $ 1. 1 billion for corporate facilities and infrastructure.

| 2008    | 2007    | 2006
------------------------------------------------ | ------- | ------- | -------
cash cash equivalents and short-term investments | $ 24490 | $ 15386 | $ 10110
accounts receivable net                          | $ 2422  | $ 1637  | $ 1252
inventory                                        | $ 509   | $ 346   | $ 270
working capital                                  | $ 20598 | $ 12676 | $ 8066
annual operating cash flow                       | $ 9596  | $ 5470  | $ 2220


subscription cost of subscription revenue consists of third-party royalties expenses related to operating our network infrastructure including depreciation expenses operating lease payments associated with computer equipment  data center costs  salaries related expenses of network operations  implementation  account management technical support personnel  amortization of intangible assets allocated overhead.
 enter contracts with third-parties for use of data center facilities data center costs consist of amounts we pay to third parties for rack space  power similar items.
 cost of subscription revenue increased due to : % ( % ) change 2014-2013 % ( % ) change 2013-2012.
 cost of subscription revenue increased during fiscal 2014 compared to fiscal 2013 due to data center costs  compensation cost related benefits  deprecation expense  royalty cost.
 data center costs increased due to higher transaction volumes in adobe marketing cloud creative cloud services.
 compensation cost related benefits increased period due to additional headcount in fiscal 2014 including from acquisition of neolane in third quarter of fiscal 2013.
 depreciation expense increased period due to higher capital expenditures recent periods invest in network data center infrastructure support growth business.
 royalty cost increased due to increases in subscriptions downloads of saas offerings.
 cost of subscription revenue increased during fiscal 2013 compared to fiscal 2012 due to increased hosted server costs amortization of purchased intangibles.
 hosted server costs increased due to increases in data center costs related to higher transaction volumes in adobe marketing cloud creative cloud services  depreciation expense from higher capital expenditures prior years compensation related benefits driven by additional headcount.
 amortization of purchased intangibles increased due to increased amortization of intangible assets purchased associated with acquisitions of behance and neolane in fiscal 2013.
services support cost of services support revenue primarily comprised of employee-related costs associated costs provide consulting services  training product support.
 cost services support revenue increased during fiscal 2014 compared to fiscal 2013 primarily due to increases in compensation related benefits additional headcount third-party fees related to training consulting services provided customers.
 cost of services support revenue increased during fiscal 2013 compared to fiscal 2012 primarily due to increases in third-party fees related to training consulting services customers compensation related benefits driven by additional headcount including headcount from acquisition of neolane in fiscal 2013.

| % (  % ) change2014-2013 | % (  % ) change2013-2012
---------------------------------------------------------------- | ------------------------ | ------------------------
data center cost                                                 | 10% ( 10 % )             | 11% ( 11 % )
compensation cost and related benefits associated with headcount | 4                        | 5
depreciation expense                                             | 3                        | 3
royalty cost                                                     | 3                        | 4
amortization of purchased intangibles                            | 2014                     | 4
various individually insignificant items                         | 1                        | 2014
total change                                                     | 21% ( 21 % )             | 27% ( 27 % )


stock performance graph performance graph not deemed 201cfiled 201d for section 18 of securities exchange act of 1934 , as amended ( 201cexchange act 201d ) or otherwise subject to liabilities under section not deemed incorporated by reference into any filing of tractor supply company under securities act of 1933 , amended , or exchange act.
 following graph compares cumulative total stockholder return on our common stock from december 28 , 2013 to december 29 , 2018 ( company 2019s fiscal year-end )  with cumulative total returns of s&p 500 index and s&p retail index over same period.
 comparison assumes $ 100 invested on december 28 , 2013 , in our common stock and in each foregoing indices and case assumes reinvestment of dividends.
 historical stock price performance not indicative of future performance.

| 12/28/2013 | 12/27/2014 | 12/26/2015 | 12/31/2016 | 12/30/2017 | 12/29/2018
---------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
tractor supply company | $ 100.00   | $ 104.11   | $ 115.45   | $ 103.33   | $ 103.67   | $ 117.18
s&p 500                | $ 100.00   | $ 115.76   | $ 116.64   | $ 129.55   | $ 157.84   | $ 149.63
s&p retail index       | $ 100.00   | $ 111.18   | $ 140.22   | $ 148.53   | $ 193.68   | $ 217.01


blackrock information our equity investment in blackrock:.
 carrying value of pnc 2019s investment in blackrock ( in billions ) b ) $ 5. 8 $ 4. 2 a ) includes pnc 2019s share of blackrock 2019s reported gaap earnings additional income taxes on earnings incurred by pnc.
 at december 31.
 blackrock/barclays global investors transaction december 1, 2009  blackrock acquired bgi from barclays bank plc exchange for approximately $ 6. 65 billion cash and 37566771 shares of blackrock common and participating preferred stock.
 bgi transaction blackrock entered amendments to stockholder agreements with pnc other major shareholder.
 amendments changed shareholder rights including composition blackrock board of directors share transfer restrictions became effective upon closing bgi transaction.
 blackrock entered stock purchase agreement with pnc purchased 3556188 shares of blackrock 2019s series d preferred stock at price $ 140. 60 per share  or $ 500 million  to partially finance transaction.
 january 31 , 2010  series d preferred stock converted to series b preferred stock.
 upon closing bgi transaction carrying value of investment in blackrock increased significantly reflecting portion increase in blackrock 2019s equity from value of blackrock shares issued acquisition of bgi.
 pnc recognized increase in value as $ 1. 076 billion pretax gain in fourth quarter of 2009.
 at december 31 , 2009 our percentage ownership of blackrock common stock was approximately 35% ( 35 % ).
 blackrock ltip programs exchange agreements pnc 2019s noninterest income included pretax gains of $ 98 million in 2009 and $ 243 million in 2008 related to blackrock ltip shares obligation.
gains represented mark-to-market adjustment related to remaining blackrock ltip common shares obligation resulted from decrease in market value of blackrock common shares.
 pnc entered exchange agreement with blackrock on december 26 , 2008.
 transactions from restructured pnc 2019s ownership of blackrock equity without altering pnc 2019s economic interest in blackrock.
 pnc continues subject to limitations on voting rights in existing agreements with blackrock.
 on december 26 , 2008  blackrock entered exchange agreement with merrill lynch in anticipation of consummation of merger of bank of america corporation and merrill lynch on january 1 , 2009.
 pnc and merrill lynch exchange agreements restructured pnc 2019s and merrill lynch 2019s ownership of blackrock common and preferred equity.
 exchange completed on february 27 , 2009.
 pnc 2019s obligation to deliver blackrock common shares replaced with obligation to deliver shares of blackrock 2019s new series c preferred stock.
 pnc acquired 2. 9 million shares of series c preferred stock from blackrock in exchange for common shares same date.
 pnc accounts for these preferred shares at fair value offsets impact of marking-to-market obligation to deliver these shares to blackrock as aligned fair value marks on asset and liability.
 fair value of blackrock series c preferred stock included on our consolidated balance sheet in other assets.
 additional information regarding valuation of blackrock series c preferred stock included in note 8 fair value in notes to consolidated financial statements in item 8 of report.
 pnc accounts for remaining investment in blackrock under equity method of accounting share of blackrock 2019s earnings reduced primarily due to exchange of blackrock common stock for blackrock series c preferred stock.
series c preferred stock not in determining pnc 2019s share of blackrock earnings under equity method.
 pnc 2019s percentage ownership of blackrock common stock increased substantial exchange of merrill lynch 2019s blackrock common stock for blackrock preferred stock.
 blackrock preferred stock held by merrill lynch and new blackrock preferred stock issued to merrill lynch and pnc under exchange agreements pnc 2019s share of blackrock common stock higher than overall share of blackrock 2019s equity and earnings.
 transactions related to exchange agreements not affect right to receive dividends by blackrock.

| 2009         | 2008
------------------------------------------------------------------------- | ------------ | ------------
business segment earnings ( in millions ) ( a )                           | $ 207        | $ 207
pnc 2019s share of blackrock earnings ( b )                               | 23% ( 23 % ) | 33% ( 33 % )
carrying value of pnc 2019s investment in blackrock ( in billions ) ( b ) | $ 5.8        | $ 4.2


supplementary information on oil gas producing activities unaudited ) summary of changes in standardized measure discounted future net cash flows to proved oil gas reserves ( in millions ) 2007 2006 2005 sales transfers of oil gas produced  net production  transportation administrative costs $ ( 4887 ) $ ( 5312 ) $ ( 3754 ) net changes in prices production transportation administrative costs related to future production 12845 ( 1342 ) 6648.

( in millions )                                                                                | 2007             | 2006             | 2005
--------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
sales and transfers of oil and gas produced net of production transportation and administrative costs     | $ -4887 ( 4887 ) | $ -5312 ( 5312 ) | $ -3754 ( 3754 )
net changes in prices and production transportation and administrative costs related to future production | 12845            | -1342 ( 1342 )   | 6648
extensions discoveries and improved recovery less related costs                                           | 1816             | 1290             | 700
development costs incurred during the period                                                              | 1654             | 1251             | 1030
changes in estimated future development costs                                                             | -1727 ( 1727 )   | -527 ( 527 )     | -552 ( 552 )
revisions of previous quantity estimates                                                                  | 290              | 1319             | 820
net changes in purchases and sales of minerals in place                                                   | 23               | 30               | 4557
accretion of discount                                                                                | 1726             | 1882             | 1124
net change in income taxes                                                                                | -6751 ( 6751 )   | -660 ( 660 )     | -6694 ( 6694 )
timing and other                                                                                | -12 ( 12 )       | -14 ( 14 )       | 307
net change for the year                                                                                | 4977             | -2083 ( 2083 )   | 4186
beginning of year                                                                                | 8518             | 10601            | 6415
end of year                                                                                | $ 13495          | $ 8518           | $ 10601
net change for the year from discontinued operations                                                      | $ 2013           | $ -216 ( 216 )   | $ 162


derivative instruments see quantitative and qualitative disclosures about market risk for discussion of derivative instruments associated market risk.
 dividends to stockholders dividends of $ 0. 92 per common share or $ 637 million paid during 2007.
 on january 27 , 2008 board of directors declared dividend of $ 0. 24 cents per share on common stock payable march 10 , 2008  to stockholders of record at close of business on february 20 , 2008.
 liquidity and capital resources main sources of liquidity capital resources are internally generated cash flow from operations , committed credit facilities access to debt and equity capital markets.
 ability to access debt capital market supported by investment grade credit ratings.
 senior unsecured debt rated investment grade by standard and poor 2019s corporation , moody 2019s investor services , inc.
 fitch ratings with ratings of bbb+ , baa1 , and bbb+.
 ratings reaffirmed in july 2007 after western acquisition announced.
 alternatives available including internally generated cash flow potential asset sales believe short-term and long-term liquidity adequate to fund operations including capital spending programs  stock repurchase program  repayment of debt maturities amounts paid in connection with contingencies.
 committed $ 3. 0 billion revolving credit facility with third-party financial institutions terminating in may 2012.
 at december 31 , 2007  no borrowings against this facility no commercial paper outstanding under.
 commercial paper program backed by revolving credit facility.
 on july 26 , 2007 filed universal shelf registration statement with securities and exchange commission  well-known seasoned issuer ability to issue and sell indeterminate amount of various types of debt and equity securities.
cash-adjusted debt-to-capital ratio ( total debt-minus-cash to debt-plus-equity-minus-cash ) was 22 percent at december 31, 2007  compared to six percent at year-end 2006 below.
 includes $ 498 million debt serviced by united states steel.
 ( dollars in millions ) 2007 2006.
 ) following issuance of $ 1. 0 billion revenue bonds by parish of st.
 john the baptist  proceeds were trusteed disbursed upon request for reimbursement of expenditures related to garyville refinery expansion.
 trusteed funds reflected as other noncurrent assets in consolidated balance sheet as of december 31 , 2007.

( dollars in millions )                 | 2007         | 2006
--------------------------------------- | ------------ | ----------
long-term debt due within one year      | $ 1131       | $ 471
long-term debt                          | 6084         | 3061
total debt                              | $ 7215       | $ 3532
cash                                    | $ 1199       | $ 2585
trusteed funds from revenue bonds ( a ) | $ 744        | $ 2013
equity                                  | $ 19223      | $ 14607
calculation:                            |              |
total debt                              | $ 7215       | $ 3532
minus cash                              | 1199         | 2585
minus trusteed funds from revenue bonds | 744          | 2013
total debt minus cash                   | 5272         | 947
total debt                              | 7215         | 3532
plus equity                             | 19223        | 14607
minus cash                              | 1199         | 2585
minus trusteed funds from revenue bonds | 744          | 2013
total debt plus equity minus cash       | $ 24495      | $ 15554
cash-adjusted debt-to-capital ratio     | 22% ( 22 % ) | 6% ( 6 % )


backlog applied manufactures systems to meet demand represented by order backlog and customer commitments.
 backlog consists of : ( 1 ) orders for written authorizations accepted assigned shipment dates within next 12 months  or shipment occurred but revenue not recognized ; ( 2 ) contractual service revenue and maintenance fees earned within next 12 months.
 backlog by reportable segment as of october 26 , 2014 and october 27 , 2013 was follows : 2014 2013 ( in millions , except percentages ).
 applied 2019s backlog on date not indicative of actual sales for future periods due to potential for customer changes in delivery schedules or cancellation of orders.
 customers may delay delivery products or cancel orders prior to shipment subject to possible cancellation penalties.
 delays in delivery schedules/or reduction of backlog during period could have adverse effect on applied 2019s business results of operations.
 manufacturing , raw materials supplies applied 2019s manufacturing activities consist primarily of assembly , test integration of proprietary commercial parts , components subassemblies ( collectively , parts ) used to manufacture systems.
 applied implemented distributed manufacturing model manufacturing supply chain activities conducted in various countries including united states  europe  israel  singapore  taiwan other countries in asia  assembly some systems completed at customer sites.
 applied uses numerous vendors  including contract manufacturers, to supply parts assembly services for manufacture support of products.
 applied efforts to assure parts available from multiple qualified suppliers not always possible.
 some key parts may be obtained from single supplier or limited group of suppliers.
applied seeks to reduce costs lower risks of manufacturing service interruptions by 1 selecting qualifying alternate suppliers for key parts 2 monitoring financial condition of key suppliers 3 maintaining appropriate inventories of key parts 4 qualifying new parts timely basis 5 ) locating manufacturing operations in close proximity to suppliers customers.
 research , development and engineering applied 2019s long-term growth strategy requires continued development of new products , including products enable expansion into new markets.
 company 2019s significant investment in research , development engineering ( rd&e ) enabled it to deliver new products technologies before emergence strong demand, allowing customers to incorporate these products into manufacturing plans at early stage in technology selection cycle.
 applied works closely with global customers to design systems processes meet planned technical production requirements.
 product development engineering organizations located primarily in united states europe  israel taiwan  china.
 in applied outsources certain rd&e activities  some performed outside united states  primarily in india singapore.
 process support customer demonstration laboratories located in united states , china  taiwan  europe  israel.
 applied 2019s investments in rd&e for product development engineering programs to create improve products technologies over last three years were follows : $ 1. 4 billion ( 16 percent of net sales ) in fiscal 2014 , $ 1. 3 billion ( 18 percent of net sales ) in fiscal 2013  $ 1. 2 billion ( 14 percent of net sales ) in fiscal 2012.
 applied spent average of 13 percent of net sales in rd&e over last five years.
 in addition to rd&e for specific product technologies  applied maintains ongoing programs for automation control systems  materials research  environmental control applicable to its products.

| 2014   | 2013           |        | ( in millions except percentages )
---------------------------------- | ------ | -------------- | ------ | ----------------------------------
silicon systems group              | $ 1400 | 48% ( 48 % )   | $ 1295 | 55% ( 55 % )
applied global services            | 775    | 27% ( 27 % )   | 591    | 25% ( 25 % )
display                            | 593    | 20% ( 20 % )   | 361    | 15% ( 15 % )
energy and environmental solutions | 149    | 5% ( 5 % )     | 125    | 5% ( 5 % )
total                              | $ 2917 | 100% ( 100 % ) | $ 2372 | 100% ( 100 % )


f0b7 financial expectations 2013 cautious about economic environment assuming industrial production grows approximately 3% ( 3 % ) as projected volume should exceed 2013 levels.
 even with no volume growth expect earnings to exceed 2013 earnings generated by core pricing gains network improvements productivity initiatives.
 expect free cash flow for 2014 lower than 2013 higher cash from operations offset by additional cash of approximately $ 400 million used to pay income taxes previously deferred through bonus depreciation increased capital spend higher dividend payments.
 results of operations operating revenues millions 2013 2012 2011 % ( % ) change 2013 v 2012 % ( % ) change 2012 v 2011.
 generate freight revenues by transporting freight materials from six commodity groups.
 freight revenues vary with volume ( carloads ) arc.
 changes in price  traffic mix fuel surcharges drive arc.
 provide customers with contractual incentives for meeting or exceeding specified cumulative volumes shipping to from specific locations record as reductions to freight revenues based on actual or projected future shipments.
 recognize freight revenues as shipments move from origin to destination.
 allocate freight revenues between reporting periods based on relative transit time recognize expenses as incur them.
 other revenues include revenues earned by subsidiaries revenues from commuter rail operations accessorial revenues earn when customers retain equipment owned or controlled perform additional services switching storage.
 recognize other revenues as perform services meet contractual obligations.
 freight revenues from five of six commodity groups increased during 2013 compared to 2012.
 revenue from agricultural products down slightly compared to 2012.
 arc increased 5% ( 5 % )  driven by core pricing gains shifts in business mix automotive logistics management arrangement.
volume flat year over year growth in automotives frac sand crude oil domestic intermodal offset declines in coal  international intermodal grain shipments.
 freight revenues from four of six commodity groups increased during 2012 compared to 2011.
 revenues from coal agricultural products declined year.
 franchise diversity allowed advantage of growth from shale-related markets ( crude oil frac sand pipe ) strong automotive manufacturing offset volume declines from coal agricultural products.
 arc increased 7% ( 7 % ) driven by core pricing gains higher fuel cost recoveries.
 improved fuel recovery provisions higher fuel prices lag effect of programs ( surcharges trail fluctuations fuel price two months ) combined to increase revenues from fuel surcharges.
 fuel surcharge programs generated freight revenues of $ 2. 6 billion , $ 2. 6 billion  $ 2. 2 billion in 2013 , 2012  2011 .
 fuel surcharge in 2013 flat versus 2012 lower fuel price offset improved fuel recovery provisions lag effect of programs ( fuel price ).
 rising fuel prices more shipments subject to fuel surcharges drove increase from 2011 to 2012.
 in 2013  other revenue increased from 2012 due to miscellaneous contract revenue higher revenues at subsidiaries broker intermodal automotive services.
 in 2012  other revenues increased from 2011 due to higher revenues at subsidiaries broker intermodal automotive services.
 assessorial revenues increased in 2012 due to container revenue related to increase in intermodal shipments.

millions         | 2013    | 2012    | 2011    | % (  % ) change 2013 v 2012 | % (  % ) change 2012 v 2011
---------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
freight revenues | $ 20684 | $ 19686 | $ 18508 | 5% ( 5 % )                  | 6% ( 6 % )
other revenues   | 1279    | 1240    | 1049    | 3                           | 18
total            | $ 21963 | $ 20926 | $ 19557 | 5% ( 5 % )                  | 7% ( 7 % )


entergy mississippi , inc.
 management's financial discussion analysis results of operations net income 2008 compared to 2007 net income decreased $ 12. 4 million due to higher operation maintenance expenses  lower other income  higher depreciation and amortization expenses  partially offset by higher net revenue.
 2007 compared to 2006 net income increased $ 19. 8 million due to higher net revenue  lower other operation maintenance expenses higher other income lower interest expense partially offset by higher depreciation and amortization expenses.
 net revenue 2008 compared to 2007 consists of operating revenues net of 1 fuel , fuel-related expenses  gas purchased for resale 2 ) purchased power expenses  3 ) other regulatory charges.
 analysis of change in net revenue comparing 2008 to 2007.
 amount ( in millions ).
 attala costs variance due to increase in attala power plant costs recovered through power management rider.
 net income effect of recovery limited to portion allowed return on equity remainder offset by attala power plant costs in other operation maintenance expenses  depreciation expenses  taxes other than income taxes.
 recovery of attala power plant costs discussed in "liquidity and capital resources - uses of capital" below.
 rider revenue variance result of storm damage rider effective in october 2007.
 establishment rider results in increase in rider revenue increase in other operation and maintenance expense for storm reserve no effect on net income.
 base revenue variance due to formula rate plan increase effective july 2007.
 formula rate plan filing discussed in "state and local rate regulation" below.
 reserve equalization variance due to changes in entergy system generation mix compared to same period in 2007.

| amount ( in millions )
--------------------- | ----------------------
2007 net revenue      | $ 486.9
attala costs          | 9.9
rider revenue         | 6.0
base revenue          | 5.1
reserve equalization  | -2.4 ( 2.4 )
net wholesale revenue | -4.0 ( 4.0 )
other                 | -2.7 ( 2.7 )
2008 net revenue      | $ 498.8