humana inc.
 notes to consolidated financial statements 2014 continued ) 15.
 stockholders 2019 equity dividends table provides details of dividend payments  excluding dividend equivalent rights in 2015  2016 2017 under board approved quarterly cash dividend policy : payment amount per share amount ( in millions ).
 november 2 , 2017  board declared cash dividend of $ 0. 40 per share paid january 26 , 2018 to stockholders of record december 29 , 2017  for aggregate amount of $ 55 million.
 declaration payment of future quarterly dividends at discretion board may be adjusted as business needs or market conditions change.
 stock repurchases in september 2014 board of directors replaced previous share repurchase authorization of up to $ 1 billion ( $ 816 million remained unused ) with authorization for repurchases of up to $ 2 billion of common shares exclusive shares repurchased in connection with employee stock plans  expired december 31 , 2016.
 under share repurchase authorization  shares may have been purchased at prevailing prices in open market  by block purchases  through plans comply with rule 10b5-1 under securities exchange act of 1934  or in privately-negotiated transactions ( including accelerated share repurchase agreements with investment banks ) subject to regulatory restrictions on volume  pricing  timing.
 merger agreement  after july 2 , 2015  prohibited from repurchasing outstanding securities without prior written consent of aetna  other than repurchases of shares common stock in connection with exercise of outstanding stock options or vesting or settlement of outstanding restricted stock awards.
 announced july 3 , 2015  suspended share repurchase program.
 february 14 , 2017  aetna agreed to mutually terminate merger agreement.
 announced board approved new authorization for share repurchases of up to $ 2. 25 billion of our common stock exclusive shares repurchased in with employee stock plans expiring december 31 , 2017.
 february 16 , 2017  entered accelerated share repurchase agreement february 2017 asr  with goldman , sachs & co.
 llc  goldman sachs  to repurchase $ 1. 5 billion of common stock part of $ 2. 25 billion share repurchase program referred.
 february 22 , 2017 made payment of $ 1. 5 billion to goldman sachs from available cash hand received initial delivery of 5. 83 million shares of common stock from goldman sachs based on current market price of humana common stock.
 payment to goldman sachs recorded as reduction to stockholders 2019 equity  $ 1. 2 billion increase in treasury stock reflected value of initial 5. 83 million shares received upon initial settlement $ 300 million decrease in capital in excess of par value reflected value of stock held back by goldman sachs pending final settlement of february 2017 asr.
 upon settlement february 2017 asr on august 28 , 2017 received additional 0. 84 million shares as determined by average daily volume weighted-average share price of common stock during term agreement of $ 224. 81 , total shares received under program to 6. 67 million.
 upon settlement reclassified $ 300 million value of stock initially held back by goldman sachs from capital in excess of par value to treasury stock.
 subsequent to settlement february 2017 asr repurchased additional 3. 04 million shares in open market utilizing remaining $ 750 million of $ 2. 25 billion authorization prior to expiration.

paymentdate | amountper share | totalamount ( in millions )
----------- | --------------- | ---------------------------
2015        | $ 1.14          | $ 170
2016        | $ 1.16          | $ 172
2017        | $ 1.49          | $ 216


december 31 , 2011  company recognized decrease of $ 3 million of tax-related interest and penalties had approximately $ 16 million accrued at december 31 , 2011.
 note 12 derivative instruments fair value measurements company exposed to market risks changes in interest rates  foreign currency exchange rates commodity prices part of ongoing business operations.
 management uses derivative financial commodity instruments  including futures , options  swaps  where appropriate to manage these risks.
 instruments used as hedges must be effective at reducing risk associated with exposure being hedged must be designated as hedge at inception of contract.
 company designates derivatives as cash flow hedges , fair value hedges , net investment hedges  uses other contracts to reduce volatility in interest rates  foreign currency commodities.
 policy company does not engage in trading or speculative hedging transactions.
 total notional amounts of company 2019s derivative instruments as of december 28 , 2013 and december 29 , 2012 were as follows:.
 description of each category in fair value hierarchy financial assets and liabilities of company included in each category at december 28 , 2013 and december 29 , 2012  measured on recurring basis.
 level 1 2014 financial assets and liabilities values based on unadjusted quoted prices for identical assets or liabilities in active market.
 level 1 financial assets liabilities consist primarily of commodity derivative contracts.
 level 2 2014 financial assets and liabilities values based on quoted prices in markets not active or model inputs observable directly or indirectly for full term asset liability.
 level 2 financial assets liabilities consist of interest rate swaps over-the-counter commodity and currency contracts.
company 2019s calculation of fair value of interest rate swaps derived from discounted cash flow analysis based on terms contract and interest rate curve.
 over-the-counter commodity derivatives valued using income approach based on commodity index prices less contract rate multiplied by notional amount.
 foreign currency contracts valued using income approach based on forward rates less contract rate multiplied by notional amount.
 company 2019s calculation of fair value of level 2 financial assets and liabilities risk of nonperformance  including counterparty credit risk.
 level 3 2014 financial assets liabilities values based on prices or valuation techniques require inputs unobservable and significant to overall fair value measurement.
 these inputs reflect management 2019s assumptions about assumptions market participant in pricing asset or liability.
 company did not have level 3 financial assets or liabilities as of december 28 , 2013 or december 29 , 2012.

( millions )                        | 2013   | 2012
----------------------------------- | ------ | ------
foreign currency exchange contracts | $ 517  | $ 570
interest rate contracts             | 2400   | 2150
commodity contracts                 | 361    | 320
total                               | $ 3278 | $ 3040


taxes decreased in 2001 utility operations in virginia subject to state income taxes gross receipts taxes effective january 2001.
 dominion recognized higher effective rates for foreign earnings higher pretax income non-conventional fuel tax credits realized.
 dominion energy 2002 2001 2000 ( millions  except per share amounts ).
 * amounts for electricity supplied by utility merchant generation operations.
 operating results 2014 2002 dominion energy contributed $ 2. 72 per diluted share on net income of $ 770 million for 2002 net income increase of $ 47 million earnings per share decrease of $ 0. 14 over 2001.
 net income 2002 reflected lower operating revenue ( $ 204 million ) operating expenses ( $ 229 million ) other income ( $ 27 million ).
 interest expense income taxes  consolidated basis decreased $ 50 million over 2001.
 earnings per share decrease reflected share dilution.
 regulated electric sales revenue increased $ 179 million.
 favorable weather conditions increased cooling heating degree-days customer growth estimated contributed $ 133 million and $ 41 million .
 fuel rate recoveries increased $ 65 million for 2002.
 recoveries offset by increases in elec- tric fuel expense not affect income.
 partially offsetting increases net decrease of $ 60 million due to other factors not impact of economic conditions on customer usage variations in seasonal rate premiums discounts.
 nonregulated electric sales revenue increased $ 9 million.
 sales revenue from dominion 2019s merchant generation fleet decreased $ 21 million reflecting $ 201 million decline due to lower prices offset by sales from assets acquired constructed in 2002 inclusion of millstone operations for 2002.
 revenue from wholesale marketing of utility generation decreased $ 74 million.
to higher demand of utility service territory customers 2002  less production from utility plant generation available for profitable sale in wholesale market.
 revenue from retail energy sales increased $ 71 million reflecting customer growth prior year.
 net revenue from dominion 2019s electric trading activities increased $ 33 million reflecting effect favorable price changes on unsettled contracts higher trading margins.
 nonregulated gas sales revenue decreased $ 351 million.
 decrease included $ 239 million decrease in sales by dominion 2019s field services retail energy marketing opera- tions reflecting declining prices.
 revenue with gas trading operations  net related cost of sales decreased $ 112 million.
 decrease included $ 70 mil- lion of realized unrealized losses on economic hedges of natural gas production by dominion exploration & pro- duction segment.
 2014 energy trading sales of natural gas production segment at market prices offset financial losses range of prices contemplated by dominion 2019s risk management strategy.
 remaining $ 42 million decrease due to unfavorable price changes on unsettled contracts lower trading margins.
 losses partially offset by from higher trading volumes in gas and oil markets.
 gas transportation and storage revenue decreased $ 44 million reflecting lower rates.
 electric fuel and energy purchases expense increased $ 94 million included increase of $ 66 million with dominion 2019s energy marketing operations not sub to cost-based rate regulation increase $ 28 million with utility operations.
 all increase non-regulated energy marketing opera- tions related to higher volumes purchased year.
 for utility operations  energy costs increased $ 66 million for pur- chases subject to rate recovery partially offset by $ 38 million decrease in fuel expenses with lower wholesale mar- keting of utility plant generation.
purchased gas expense decreased $ 245 million dominion 2019s field services retail energy marketing oper- ations.
 decrease reflected $ 162 million declining prices $ 83 million lower purchased volumes.
 liquids , pipeline capacity other purchases decreased $ 64 million reflecting lower levels rate recoveries certain costs transmission operations cur- rent year period.
 difference between actual expenses amounts recovered period deferred pending future rate adjustments.
 other operations maintenance expense decreased $ 14 million  reflecting $ 18 million decrease in outage costs due to fewer generation unit outages current year.
 depreciation expense decreased $ 11 million reflecting decreases depreciation changes in esti- mated useful lives of certain electric generation property  offset by increased depreciation state line millstone operations.
 other income decreased $ 27 million  $ 14 mil- lion decrease in net realized investment gains in millstone 37d o m i n i o n 2019 0 2 a n n u a l r e p o r t

( millions except pershare amounts )    | 2002   | 2001   | 2000
--------------------------------------- | ------ | ------ | ------
operating revenue                       | $ 5940 | $ 6144 | $ 4894
operating expenses                      | 4520   | 4749   | 3939
net income contribution                 | 770    | 723    | 489
earnings per share contribution         | $ 2.72 | $ 2.86 | $ 2.07
electricity supplied* ( million mwhrs ) | 101    | 95     | 83
gas transmission throughput ( bcf )     | 597    | 553    | 567


troubled debt restructurings ( tdrs ) a tdr is a loan whose terms restructured grants concession to borrower experiencing financial difficulty.
 tdrs result from our loss mitigation activities include rate reductions  principal forgiveness  postponement/reduction of scheduled amortization extensions intended to minimize economic loss avoid foreclosure or repossession of collateral.
 tdrs result from borrowers discharged from personal liability through chapter 7 bankruptcy not formally reaffirmed loan obligations to pnc.
 in situations where principal is forgiven, principal forgiveness is immediately charged off.
 some tdrs may not result in full collection of principal and interest  as restructured result in potential incremental losses.
 potential incremental losses factored into our overall alll estimate.
 level of subsequent defaults likely affected by future economic conditions.
 once a loan becomes a tdr  it continue to be reported as a tdr until it repaid in full, collateral is foreclosed upon or fully charged off.
 held specific reserves in of $. 4 billion and $. 5 billion at december 31 , 2014 and december 31 , 2013  for total tdr portfolio.
 table 67 : summary of troubled debt restructurings in millions december 31 december 31.
 ) accruing tdr loans have demonstrated at six months of performance under restructured terms are excluded from nonperforming loans.
 loans where borrowers discharged from personal liability through chapter 7 bankruptcy and not formally reaffirmed loan obligations to pnc and loans to borrowers not currently obligated to make both principal and interest payments under restructured terms are not returned to accrual status.
table 68 quantifies number of loans classified as tdrs change in recorded investments result of tdr classification during 2014 , 2013 , and 2012 , respectively.
 table provides information about types of tdr concessions.
 principal forgiveness tdr category includes principal forgiveness and accrued interest forgiveness.
 these types tdrs result in write down of recorded investment and charge-off if action not already taken place.
 rate reduction tdr category includes reduced interest rate and interest deferral.
 tdrs within this category result in reductions to future interest income.
 other tdr category includes consumer borrowers discharged from personal liability through chapter 7 bankruptcy not formally reaffirmed loan obligations to pnc, postponement/reduction of scheduled amortization and contractual extensions for both consumer and commercial borrowers.
 in some cases multiple concessions granted on one loan.
 most common within commercial loan portfolio.
 when multiple concessions granted in commercial loan portfolio principal forgiveness concession prioritized for determining inclusion in table 68.
 for example if principal forgiveness in conjunction with lower interest rate and postponement of amortization, type of concession will be reported as principal forgiveness.
 second in priority would be rate reduction.
 for example if interest rate reduction in conjunction with postponement of amortization , type of concession will be reported as a rate reduction.
 in multiple concessions granted on a consumer loan  concessions resulting from discharge from personal liability through chapter 7 bankruptcy without formal affirmation of loan obligations to pnc prioritized and included in other type of concession in table below.
 after consumer loan concessions follow previously discussed priority of concessions for commercial loan portfolio.
 138 pnc financial services group , inc.
 2013 form 10-k

in millions              | december 312014 | december 312013
------------------------ | --------------- | ---------------
total consumer lending   | $ 2041          | $ 2161
total commercial lending | 542             | 578
total tdrs               | $ 2583          | $ 2739
nonperforming            | $ 1370          | $ 1511
accruing ( a )           | 1083            | 1062
credit card              | 130             | 166
total tdrs               | $ 2583          | $ 2739


united kingdom.
 bermuda re 2019s uk branch conducts business in uk subject to taxation in uk.
 bermuda re believes it has operated will continue operate its bermuda operation not cause subject to uk taxation.
 if bermuda re 2019s bermuda operations become subject to uk income tax  could material adverse impact on company 2019s financial condition , results of operations cash flow.
 ireland.
 holdings ireland and ireland re conduct business in ireland subject to taxation in ireland.
 available information.
 company 2019s annual reports on form 10-k , quarterly reports on form 10-q, current reports on form 8- k  proxy statements amendments reports available free of charge through company 2019s internet website at http://www. everestre. com after reports electronically filed with securities and exchange commission ( 201csec 201d ).
 item 1a.
 risk factors in addition other information report following risk factors should be considered when evaluating investment in our securities.
 if circumstances contemplated by individual risk factors materialize  our business , financial condition results of operations could be materially adversely affected trading price of common shares could decline significantly.
 risks to business fluctuations in financial markets could result in investment losses.
 prolonged severe disruptions in public debt and equity markets  occurred during 2008 , could result in significant realized and unrealized losses in investment portfolio.
 for year ended december 31 , 2008  incurred $ 695. 8 million of realized investment gains and $ 310. 4 million of unrealized investment losses.
 financial markets improved during 2009 and 2010 , could deteriorate future result in substantial realized and unrealized losses could material adverse impact on our results of operations , equity , business insurer financial strength debt ratings.
results could be adversely affected by catastrophic events.
 exposed to unpredictable catastrophic events  including weather-related natural catastrophes acts of terrorism.
 material reduction in operating results caused by or catastrophes could inhibit ability to pay dividends or meet interest and principal payment obligations.
 subsequent to april 1 , 2010  define catastrophe as event causes loss on property exposures before reinsurance of at least $ 10. 0 million , before corporate level reinsurance and taxes.
 prior to april 1 , 2010  used threshold of $ 5. 0 million.
 illustration during past five calendar years  pre-tax catastrophe losses , net of contract specific reinsurance before cessions under corporate reinsurance programs were as follows:.

calendar year:          | pre-tax catastrophe losses
----------------------- | --------------------------
( dollars in millions ) |
2010                    | $ 571.1
2009                    | 67.4
2008                    | 364.3
2007                    | 160.0
2006                    | 287.9


part i item 1 entergy corporation , domestic utility companies  system energy employment litigation ( entergy corporation , entergy arkansas  entergy gulf states  louisiana  mississippi  new orleans  system energy ) entergy corporation domestic utility companies are defendants in lawsuits filed by former employees alleging wrongfully terminated discriminated against on age  race  sex other protected characteristics.
 entergy corporation domestic utility companies defending these suits deny liability to plaintiffs.
 no assurance can be given outcome of cases management cannot estimate total damages sought.
 included in employment litigation are two cases filed in state court in claiborne county , mississippi in december 2002.
 two cases filed by former employees of entergy operations based at grand gulf.
 entergy operations and entergy employees named as defendants.
 cases make employment-related claims  seek total $ 53 million in alleged actual damages $ 168 million in punitive damages.
 entergy removed proceedings to federal district in jackson , mississippi.
 entergy cannot predict ultimate outcome of proceeding.
 research spending entergy member of electric power research institute ( epri ).
 epri conducts broad research in major technical fields related to electric utility industry.
 entergy participates in epri projects based on entergy's needs available resources.
 domestic utility companies contributed $ 1. 6 million in 2004 , $ 1. 5 million in 2003  $ 2. 1 million in 2002 to epri.
 non-utility nuclear business contributed $ 3. 2 million in 2004 and $ 3 million in 2003 and 2002 to epri.
 employees employees integral part of entergy's commitment to serving customers.
 as of december 31 , 2004  entergy employed 14425 people.
 u..
 utility:.
 approximately 4900 employees represented by international brotherhood of electrical workers union  utility workers union of america  international brotherhood of teamsters union.

entergy arkansas           | 1494
-------------------------- | -----
entergy gulf states        | 1641
entergy louisiana          | 943
entergy mississippi        | 793
entergy new orleans        | 403
system energy              | -
entergy operations         | 2735
entergy services           | 2704
entergy nuclear operations | 3245
other subsidiaries         | 277
total full-time            | 14235
part-time                  | 190
total entergy              | 14425


zimmer holdings , inc.
 2013 form 10-k annual report notes to consolidated financial statements continued ) fees paid to collaborative partners.
 contingent milestone payments due to third parties under research and development arrangements milestone payment obligations expensed when milestone results achieved.
 litigation 2013 record liability for contingent losses  including future legal costs , settlements judgments when consider probable liability incurred amount loss reasonably estimated.
 special items 2013 recognize expenses from business combinations , employee termination benefits  certain r&d agreements contract terminations consulting and professional fees asset impairment or loss on disposal charges connected with global restructuring  operational and quality excellence initiatives other items as 201cspecial items 201d in consolidated statement of earnings.
 201cspecial items 201d included ( in millions ) :.
 impairment/ loss on disposal of assets relates to impairment of intangible assets acquired in business combinations or impairment of loss on disposal of other assets.
 consulting and professional fees relate to third-party consulting , professional fees contract labor related to quality and operational excellence initiatives third-party consulting fees related information system implementations  third-party integration consulting in variety areas tax , compliance  logistics human resources for business combinations third-party fees related to severance and termination benefits matters legal fees related to certain product liability matters.
 quality and operational excellence initiatives company- wide include improvements in quality , distribution , sourcing  manufacturing information technology .
 in 2013 , 2012 2011  eliminated positions reduced management layers  restructured certain areas  announced closures of facilities commenced initiatives to focus on business opportunities support strategic priorities.
in 2013 , 2012 2011 , approximately 170 , 400 500 positions   from across globe affected by these actions.
 result of changes in work force headcount reductions in connection with acquisitions , we incurred expenses related to severance benefits  redundant salaries transition periods  share-based compensation acceleration other employee termination-related costs.
 majority of termination benefits provided in accordance with existing or local government policies considered ongoing benefits.
 costs accrued when became probable estimable recorded as part of other current liabilities.
 majority of costs paid during year they incurred.
 dedicated project personnel expenses include salary , benefits  travel expenses other costs directly associated with employees 100 percent dedicated to operational quality excellence initiatives or integration of acquired businesses.
 certain r&d agreements relate to agreements with upfront payments to obtain intellectual property used in r&d projects no alternative future use in other projects.
 relocated facilities expenses are moving costs lease expenses incurred during relocation period facilities.
 over past few years acquired number of u. s.
 foreign-based distributors.
 incurred various costs related to consummation integration of those businesses.
 certain litigation matters relate to costs and adjustments recognized during year for estimated or actual settlement of legal matters  including royalty disputes  patent litigation matters commercial litigation matters matters arising from acquisitions of competitive distributorships in prior years.
 contract termination costs relate to terminated agreements in with integration of acquired companies changes to distribution model as part of business restructuring operational excellence initiatives.
 terminated contracts primarily relate to sales agents and distribution agreements.
 contingent consideration adjustments represent changes in fair value of contingent consideration obligations to paid to prior owners of acquired businesses.
accelerated software amortization is incremental amortization resulting from reduction in estimated life of certain software.
 in 2012  approved plan to replace certain software.
 estimated economic useful life of existing software decreased to represent period of time expected to implement replacement software.
 amortization from shortened life of this software substantially higher than previous amortization recognized.
 cash and cash equivalents 2013 consider all highly liquid investments with original maturity of three months or less to be cash equivalents.
 carrying amounts reported in balance sheet for cash and cash equivalents are valued at cost, approximates their fair value.

for the years ended december 31,                                                 | 2013    | 2012         | 2011
-------------------------------------------------------------------------------- | ------- | ------------ | ------
impairment/loss on disposal of assets                                            | $ 10.9  | $ 14.6       | $ 8.4
consulting and professional fees                                                 | 99.1    | 90.1         | 26.0
employee severance and retention including share-based compensation acceleration | 14.2    | 8.2          | 23.1
dedicated project personnel                                                      | 34.0    | 15.1         | 3.2
certain r&d agreements                                                           | 0.8     | 2013         | 2013
relocated facilities                                                             | 3.6     | 1.8          | 2013
distributor acquisitions                                                         | 0.4     | 0.8          | 2.0
certain litigation matters                                                       | 26.9    | 13.7         | 0.1
contract terminations                                                            | 3.9     | 6.6          | 6.3
contingent consideration adjustments                                             | 9.0     | -2.8 ( 2.8 ) | 2013
accelerated software amortization                                                | 6.0     | 4.5          | 2013
other                                                                            | 7.9     | 2.8          | 6.1
special items                                                                    | $ 216.7 | $ 155.4      | $ 75.2


commitment expiration per period other commercial commitments after millions total 2013 2014 2015 2016 2017 2017.
 [a none credit facility used as of december 31 , 2012.
 [b $ 100 million of receivables securitization facility utilized at december 31 , 2012 accounted for as debt.
 full program matures in july 2013.
 [c includes guaranteed obligations related to headquarters building  equipment financings affiliated operations.
 [d none letters of credit drawn upon as of december 31 , 2012.
 off-balance sheet arrangements guarantees 2013 at december 31, 2012 contingently liable for $ 307 million in guarantees.
 recorded liability of $ 2 million for fair value of these obligations as of december 31 , 2012 and 2011.
 entered into contingent guarantees in normal course of business include guaranteed obligations related to headquarters building equipment financings affiliated operations.
 final guarantee expires in 2022.
 not aware of existing event of default require to satisfy guarantees.
 not expect guarantees material adverse effect on consolidated financial condition  results of operations or liquidity.
 other matters labor agreements 2013 approximately 86% ( 86 % ) of 45928 full-time-equivalent employees represented by 14 major rail unions.
 year concluded recent round of negotiations began in 2010 with ratification of new agreements by several unions continued negotiating into 2012.
 unions executed similar multi-year agreements provide for higher employee cost sharing of employee health and welfare benefits higher wages.
 current agreements remain in effect until renegotiated under provisions railway labor act.
 next round of negotiations begin in early 2015.
 inflation 2013 long periods of inflation increase asset replacement costs for capital-intensive companies.
result  assuming we replace all operating assets at current price levels , depreciation charges ( on inflation-adjusted basis ) greater than historically reported amounts.
 derivative financial instruments 2013 we may use derivative financial instruments in limited instances to assist managing exposure to fluctuations in interest rates fuel prices.
 not a party to leveraged derivatives by do not use derivative financial instruments for speculative purposes.
 derivative financial instruments qualifying for hedge accounting must maintain specified level of effectiveness between hedging instrument and item hedged  at inception and throughout hedged period.
 document nature relationships between hedging instruments and hedged items at inception risk-management objectives strategies for hedge transactions method of assessing hedge effectiveness.
 changes in fair market value of derivative financial instruments not qualify for hedge accounting are charged to earnings.
 may use swaps , collars futures forward contracts to mitigate risk of adverse movements in interest rates fuel prices ; use of these derivative financial instruments may limit future benefits from favorable price movements.
 market and credit risk 2013 address market risk related to derivative financial instruments by selecting instruments with value fluctuations that correlate with underlying hedged item.
 manage credit risk related to derivative financial instruments  minimal by requiring high credit standards for counterparties periodic settlements.
 at december 31 , 2012 and 2011  not required to provide collateral  nor had received collateral  relating to hedging activities.

other commercial commitmentsmillions    | total  | amount of commitment expiration per period 2013 | amount of commitment expiration per period 2014 | amount of commitment expiration per period 2015 | amount of commitment expiration per period 2016 | amount of commitment expiration per period 2017 | amount of commitment expiration per period after 2017
--------------------------------------- | ------ | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | -----------------------------------------------------
credit facilities [a]                   | $ 1800 | $ -                                             | $ -                                             | $ 1800                                          | $ -                                             | $ -                                             | $ -
receivables securitization facility [b] | 600    | 600                                             | -                                               | -                                               | -                                               | -                                               | -
guarantees [c]                          | 307    | 8                                               | 214                                             | 12                                              | 30                                              | 10                                              | 33
standby letters of credit [d]           | 25     | 24                                              | 1                                               | -                                               | -                                               | -                                               | -
total commercialcommitments             | $ 2732 | $ 632                                           | $ 215                                           | $ 1812                                          | $ 30                                            | $ 10                                            | $ 33


adequate access to capital markets meet foreseeable cash requirements sufficient financial capacity to satisfy current liabilities.
 cash flows millions 2014 2013 2012.
 operating activities higher net income in 2014 increased cash provided by operating activities compared to 2013 despite higher income tax payments.
 2014 income tax payments higher than 2013 primarily due to higher income paid taxes previously deferred by bonus depreciation discussed.
 higher net income in 2013 increased cash by operating activities compared to 2012.
 made payments in 2012 for past wages national labor negotiations reduced cash provided operating activities in 2012.
 lower tax benefits from bonus depreciation partially offset increases.
 federal tax law provided for 100% ( 100 % ) bonus depreciation for qualified investments during 2011 50% ( 50 % ) bonus depreciation for qualified investments during 2012-2013.
 company deferred substantial portion of 2011-2013 income tax expense contributing to positive operating cash flow years.
 congress extended 50% ( 50 % ) bonus depreciation for 2014 extension occurred in december not significant benefit on income tax payments during 2014.
 investing activities higher capital investments  including early buyout of long-term operating lease of headquarters building for approximately $ 261 million drove increase in cash used in investing activities compared to 2013.
 significant investments made for new locomotives  freight cars containers  capacity and commercial facility projects.
 capital investments in 2014 included $ 99 million for early buyout of locomotives and freight cars under long-term operating leases exercised due to favorable economic terms market conditions.
 lower capital investments in locomotives freight cars in 2013 drove decrease in cash used in investing activities compared to 2012.
in capital investments in 2012 was $ 75 million for early buyout of 165 locomotives under long-term operating capital leases first quarter 2012  exercised due to favorable economic terms market conditions.

cash flowsmillions                     | 2014           | 2013           | 2012
-------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities  | $ 7385         | $ 6823         | $ 6161
cash used in investing activities      | -4249 ( 4249 ) | -3405 ( 3405 ) | -3633 ( 3633 )
cash used in financing activities      | -2982 ( 2982 ) | -3049 ( 3049 ) | -2682 ( 2682 )
net change in cash and cashequivalents | $ 154          | $ 369          | $ -154 ( 154 )


item 7.
 management 2019s discussion analysis of financial condition results of operations discussion analysis based on consolidated financial statements of welltower inc.
 for periods presented read together with notes in annual report on form 10-k.
 other important factors identified in 201citem 1 2014 business 201d and 201citem 1a 2014 risk factors 201d above.
 executive summary company overview welltower inc.
 ( nyse : hcn )  s&p 500 company in toledo, ohio driving transformation of health care infrastructure.
 company invests with leading seniors housing operators  post- acute providers health systems to fund real estate infrastructure to scale innovative care delivery models improve people 2019s wellness health care experience.
 welltowertm , real estate investment trust ( 201creit 201d ) owns interests in properties in major high-growth markets in united states , canada united kingdom  of seniors housing post-acute communities outpatient medical properties.
 our capital programs  combined with comprehensive planning , development property management services make single-source solution for acquiring planning developing managing repositioning monetizing real estate assets.
 table summarizes our consolidated portfolio for year ended december 31 , 2016 ( dollars in thousands ) : type of property net operating income ( noi ) ( 1 ) percentage of number of properties.
 ( 1 ) excludes investments in unconsolidated entities non-segment/corporate noi.
 entities joint venture with minority partner shown at 100% ( 100 % ) of joint venture amount.
 business strategy primary objectives are to protect stockholder capital enhance stockholder value.
 seek to pay consistent cash dividends to stockholders create opportunities to increase dividend payments stockholders result of annual increases in net operating income portfolio growth.
to meet objectives , we invest across full spectrum of seniors housing health care real estate diversify investment portfolio by property type  relationship geographic location.
 substantially all revenues derived from operating lease rentals , resident fees services  interest earned on outstanding loans receivable.
 these items represent primary sources of liquidity to fund distributions depend upon continued ability of obligors to make contractual rent interest payments to profitability of operating properties.
 to customers/partners experience operating difficulties unable to generate sufficient cash to make payments , could be material adverse impact on our consolidated results of operations , liquidity/or financial condition.
 to mitigate risk we monitor investments through variety of methods determined by type of property.
 proactive comprehensive asset management process for seniors housing properties includes review of monthly financial statements other operating data for each property review of obligor/ partner creditworthiness property inspections review of covenant compliance relating to licensure , real estate taxes  letters of credit other collateral.
 internal property management division manages monitors outpatient medical portfolio with comprehensive process including review of tenant relations  lease expirations mix of health service providers  hospital/health system relationships  property performance

type of property          | net operating income ( noi ) ( 1 ) | percentage of noi  | number of properties
------------------------- | ---------------------------------- | ------------------ | --------------------
triple-net                | $ 1208860                          | 50.3% ( 50.3 % )   | 631
seniors housing operating | 814114                             | 33.9% ( 33.9 % )   | 420
outpatient medical        | 380264                             | 15.8% ( 15.8 % )   | 262
totals                    | $ 2403238                          | 100.0% ( 100.0 % ) | 1313


recourse repurchase obligations discussed in note 3 loan sale servicing activities variable interest entities pnc sold commercial mortgage residential mortgage home equity loans directly or indirectly through securitization loan sale transactions in continuing involvement.
 form continuing involvement includes recourse and loan repurchase obligations associated with transferred assets.
 commercial mortgage loan recourse obligations we originate  close service multi-family commercial mortgage loans sold to fnma under fnma 2019s delegated underwriting and servicing ( dus ) program.
 participated in similar program with fhlmc.
 programs assume up to one-third pari passu risk of loss on unpaid principal balances through loss share arrangement.
 at december 31 , 2013 and december 31 , 2012 unpaid principal balance outstanding of loans sold participant in programs was $ 11. 7 billion and $ 12. 8 billion.
 potential maximum exposure under loss share arrangements was $ 3. 6 billion at december 31 , 2013 and $ 3. 9 billion at december 31 , 2012.
 maintain reserve for estimated losses based upon exposure.
 reserve for losses under programs totaled $ 33 million and $ 43 million as of december 31 , 2013 and december 31  2012 included in other liabilities on consolidated balance sheet.
 if payment required under programs contractual interest in collateral underlying mortgage loans on losses occurred value of collateral taken into account in determining our share of such losses.
 exposure activity associated with recourse obligations reported in corporate & institutional banking segment.
 table 152 : analysis of commercial mortgage recourse obligations.
 residential mortgage loan home equity repurchase obligations residential mortgage loans sold on non-recourse basis we assume certain loan repurchase obligations associated with mortgage loans sold to investors.
loan repurchase obligations relate to situations pnc alleged to breached origination covenants representations warranties to purchasers loans in purchase sale agreements.
 for additional information on loan sales see note 3 loan sale and servicing activities variable interest entities.
 historical exposure activity with agency securitization repurchase obligations primarily related to transactions with fnma and fhlmc indemnification repurchase losses with fha and va-insured uninsured loans pooled in gnma securitizations minimal.
 repurchase obligation activity with residential mortgages reported in residential mortgage banking segment.
 in fourth quarter of 2013 pnc reached agreements with fnma and fhlmc to resolve repurchase claims loans sold between 2000 and 2008.
 pnc paid total of $ 191 million related to these settlements.
 pnc 2019s repurchase obligations include brokered home equity loans/lines of credit sold to limited number private investors financial services industry by national city prior to acquisition of national city.
 pnc no longer engaged in brokered home equity lending business exposure under loan repurchase obligations limited to repurchases of loans sold in these transactions.
 repurchase activity with brokered home equity loans/lines of credit reported in non-strategic assets portfolio segment.
 indemnification and repurchase liabilities initially recognized when loans sold to investors subsequently evaluated by management.
 initial recognition subsequent adjustments to indemnification repurchase liability for sold residential mortgage portfolio recognized in residential mortgage revenue on consolidated income statement.
 since pnc no longer engaged in brokered home equity lending business only subsequent adjustments recognized to home equity loans/lines indemnification and repurchase liability.
adjustments recognized in noninterest income consolidated income statement.
 214 pnc financial services group , inc.
 2013 form 10-k

in millions                                  | 2013     | 2012
-------------------------------------------- | -------- | --------
january 1                                    | $ 43     | $ 47
reserve adjustments net                      | -9 ( 9 ) | 4
losses 2013 loan repurchases and settlements | -1 ( 1 ) | -8 ( 8 )
december 31                                  | $ 33     | $ 43


diluted earnings per share calculation excludes stock options  sars  restricted stock units performance units stock anti-dilutive.
 shares underlying excluded stock options sars totaled 10. 3 million , 10. 2 million 0. 7 million for years ended december 31 , 2016 , 2015 2014 , respectively.
 for years ended december 31 2016 2015  4. 5 million and 5. 3 million shares of restricted stock units performance units performance stock excluded.
 10.
 supplemental cash flow information net cash paid for interest income taxes was for years ended december 31, 2016, 2015 2014 ( in thousands ) :.
 eog's accrued capital expenditures at december 31 , 2016, 2015 2014 were $ 388 million , $ 416 million $ 972 million , respectively.
 non-cash investing activities for year ended december 31 , 2016  included $ 3834 million in non-cash additions to eog's oil and gas properties related to yates transaction ( see note 17 ).
 non-cash investing activities for year ended december 31 , 2014 included non-cash additions of $ 5 million to eog oil and gas properties property exchanges.
 11.
 business segment information eog's operations are all crude oil and natural gas exploration production related.
 segment reporting topic asc establishes standards for reporting information about operating segments in annual financial statements.
 operating segments defined as components of enterprise separate financial information available evaluated by chief operating decision maker  group deciding resources assessing performance.
 eog chief operating decision-making process informal involves chairman of board chief executive officer other key officers.
 group reviews makes operating decisions related to significant issues associated eog's major producing areas in united states , trinidad  united kingdom china.
segment reporting purposes , chief operating decision maker considers major united states producing areas one operating segment.

| 2016               | 2015     | 2014
------------------------------------ | ------------------ | -------- | --------
interest net of capitalized interest | $ 252030           | $ 222088 | $ 197383
income taxes net of refunds received | $ -39293 ( 39293 ) | $ 41108  | $ 342741


put options we have outstanding put option agreements with shareholders of our air products san fu company , ltd.
 and indura s. a.
 subsidiaries.
 put options give shareholders right to sell stock in subsidiaries based on pricing terms in agreements.
 refer to note 17 , commitments and contingencies consolidated financial statements for additional information.
 due to uncertainty of options exercised and timing excluded potential payments from contractual obligations table.
 pension benefits sponsor defined benefit pension plans cover substantial portion of worldwide employees.
 principal defined benefit pension plans 2014the u. s.
 salaried pension plan and u. k.
 pension plan 2014were closed to new participants in 2005 replaced with defined contribution plans.
 shift to defined contribution plans expected to reduce volatility of plan expense and contributions.
 for 2013 fair market value of pension plan assets for defined benefit plans increased to $ 3800. 8 from $ 3239. 1 in 2012.
 projected benefit obligation for these plans was $ 4394. 0 and $ 4486. 5 in 2013 and 2012 .
 refer to note 16 , retirement benefits  consolidated financial statements for comprehensive detailed disclosures on postretirement benefits.
 pension expense.
 2013 vs.
 2012 increase in pension expense items attributable to 100 bp decrease in weighted average discount rate higher amortization of actuarial losses.
 increase partially offset by higher expected return on plan assets and contributions in 2013.
 special items of $ 19. 8 included $ 12. 4 for pension settlement losses and $ 6. 9 for special termination benefits relating to 2013 business restructuring and cost reduction plan.
 2012 vs.
 2011 pension expense in 2012 excluding special items comparable to 2011 expense no change in weighted average discount rate from year to year.
2014 outlook pension expense estimated approximately $ 140 to $ 145  excluding special items 2014 decrease of $ 5 to $ 10 from 2013 resulting primarily from increase in discount rates partially offset by unfavorable impacts changes in mortality and inflation assumptions.
 pension settlement losses of $ 10 to $ 25 expected dependent on timing of retirements.
 in 2014 pension expense include approximately $ 118 for amortization of actuarial losses compared to $ 143 in 2013.
 net actuarial gains of $ 370. 4 recognized in 2013 resulting primarily from approximately 65 bp increase in weighted average discount rate actual asset returns above expected returns.
 actuarial gains/losses amortized into pension expense over prospective periods not offset by future gains or losses.
 future changes in discount rate and actual returns on plan assets different from expected returns impact actuarial gains/losses and amortization in years beyond 2014.
 pension funding includes contributions to funded plans and benefit payments for unfunded plans primarily non-qualified plans.
 funding policy is contributions combined with appreciation and earnings sufficient to pay benefits without creating unnecessary surpluses.
 make contributions to satisfy legal funding requirements while managing capacity to benefit from tax deductions attributable to plan contributions.
 with assistance third party actuaries analyze liabilities and demographics of each plan guide level of contributions.
 during 2013 and 2012  cash contributions to funded plans and benefit payments for unfunded plans were $ 300. 8 and $ 76. 4  respectively.
 contributions for 2013 include voluntary contributions for.
 plans of $ 220. 0.

| 2013           | 2012           | 2011
-------------------------------------------------------------------- | -------------- | -------------- | --------------
pension expense                                                      | $ 169.7        | $ 120.4        | $ 114.1
special terminations settlements and curtailments ( included above ) | 19.8           | 8.2            | 1.3
weighted average discount rate                                       | 4.0% ( 4.0 % ) | 5.0% ( 5.0 % ) | 5.0% ( 5.0 % )
weighted average expected rate of return on plan assets              | 7.7% ( 7.7 % ) | 8.0% ( 8.0 % ) | 8.0% ( 8.0 % )
weighted average expected rate of compensation increase              | 3.8% ( 3.8 % ) | 3.9% ( 3.9 % ) | 4.0% ( 4.0 % )


clients use active and passive strategies application differs.
 clients may use index products to gain exposure to market or asset class pending reallocation to active manager.
 turnover of index aum.
 institutional non-etp index assignments large ( multi- billion dollars ) reflect low fee rates.
 potential to exaggerate significance of net flows in institutional index products on blackrock 2019s revenues earnings.
 year-end 2012 equity aum of $ 1. 845 trillion increased by $ 285. 4 billion  or 18% ( 18 % ), from end 2011 due to flows into regional country-specific global mandates higher market valuations.
 equity aum growth included $ 54. 0 billion in net new business $ 3. 6 billion in new assets related to acquisition of claymore.
 net new business of $ 54. 0 billion driven by net inflows of $ 53. 0 billion and $ 19. 1 billion into ishares and non-etp index accounts.
 passive inflows offset by active net outflows of $ 18. 1 billion net outflows of $ 10. 0 billion and $ 8. 1 billion from fundamental and scientific active equity products.
 passive strategies represented 84% ( 84 % ) of equity aum remaining 16% ( 16 % ) in active mandates.
 institutional investors represented 62% ( 62 % ) of equity aum ishares , retail and hnw represented 29% ( 29 % ) and 9% ( 9 % ) .
 year-end 2012  63% ( 63 % ) of equity aum managed for clients in americas united states caribbean canada latin america iberia ) compared with 28% ( 28 % ) and 9% ( 9 % ) managed for clients in emea and asia-pacific .
blackrock 2019s fee rates fluctuate due to changes in aum mix.
 half of equity aum tied to international markets including emerging markets higher fee rates than similar.
 equity strategies.
 fluctuations in international equity markets not with.
 markets may impact on blackrock 2019s equity fee rates and revenues.
 fixed income aum ended 2012 at $ 1. 259 trillion  rising $ 11. 6 billion  or 1% ( 1 % ) relative to december 31 , 2011.
 growth aum reflected $ 43. 3 billion in net new business  excluding low-fee outflows $ 75. 4 billion in market and foreign exchange gains $ 3. 0 billion in new assets related to claymore.
 net new business led by flows into domestic specialty and global bond mandates net inflows of $ 28. 8 billion , $ 13. 6 billion $ 3. 1 billion into ishares  non-etp index model-based products partially offset by net outflows of $ 2. 2 billion from fundamental strategies.
 fixed income aum split between passive and active strategies with 48% ( 48 % ) and 52% ( 52 % ).
 institutional investors represented 74% ( % ) of aum ishares and retail and hnw represented 15% ( 15 % ) and 11% ( 11 % ) .
 year-end 2012 59% ( 59 % ) of fixed income aum managed for clients in americas with 33% ( 33 % ) and 8% ( 8 % ) managed for clients in emea and asia- pacific .
 multi-asset class component changes in aum ( dollar amounts in millions ) 12/31/2011 net new business acquired market 12/31/2012.
 multi-asset class aum totaled $ 267.7 billion year-end 2012  up 19% ( 19 % )  or $ 42. 6 billion  reflecting $ 15. 8 billion net new business $ 26. 7 billion portfolio valuation gains.
 blackrock 2019s multi-asset class team manages bespoke mandates for diversified client base leverages broad investment expertise in global equities  currencies bonds commodities extensive risk management capabilities.
 investment solutions might include long-only portfolios alternative investments tactical asset allocation overlays.
 december 31 , 2012  institutional investors represented 66% ( 66 % ) of multi-asset class aum  retail hnw accounted for remaining aum.
 58% ( 58 % ) of multi-asset class aum managed for clients in americas 37% ( 37 % ) and 5% ( 5 % ) managed for clients in emea asia-pacific .
 flows reflected ongoing institutional demand for advice increasingly

( dollar amounts in millions ) | 12/31/2011 | net new business | net acquired | market /fx app ( dep ) | 12/31/2012
------------------------------ | ---------- | ---------------- | ------------ | ---------------------- | ----------
asset allocation               | $ 126067   | $ 1575           | $ 78         | $ 12440                | $ 140160
target date/risk               | 49063      | 14526            | 2014         | 6295                   | 69884
fiduciary                      | 50040      | -284 ( 284 )     | 2014         | 7948                   | 57704
multi-asset                    | $ 225170   | $ 15817          | $ 78         | $ 26683                | $ 267748


management 2019s discussion analysis of financial condition results of operations ( continued ) liquidity capital resources snap-on 2019s growth historically funded by combination cash operating activities debt financing.
 snap-on believes its cash from operations collections of finance receivables with sources of borrowings available cash on hand sufficient to fund anticipated requirements for payments of interest dividends  new loans by financial services businesses capital expenditures  working capital  restructuring activities funding of pension plans funding for additional share repurchases acquisitions  if.
 due to snap-on 2019s credit rating years , external funds available at acceptable cost.
 as of close of business on february 8 , 2013 , snap-on 2019s long-term debt commercial paper rated  , baa1 and p-2 by moody 2019s investors service ; a- and a-2 by standard & poor 2019s ; a- and f2 by fitch ratings.
 snap-on believes its current credit arrangements are sound strength of balance sheet affords company financial flexibility to respond to internal growth opportunities acquisitions.
 snap-on cannot provide assurances of availability of future financing terms available debt ratings may not decrease.
 discussion focuses on information in accompanying consolidated balance sheets.
 as of 2012 year end  working capital ( current assets less current liabilities ) of $ 1079. 8 million increased $ 132. 9 million from $ 946. 9 million at 2011 year end.
 following represents company 2019s working capital position as of 2012 and 2011 year end : ( amounts in millions ) 2012 2011.
 cash and cash equivalents of $ 214. 5 million as of 2012 year end compared to cash cash $ 185. 6 million at 2011 year end.
 $ 28. 9 million increase in cash and cash equivalents includes impacts of ( i ) $ 329.3 million cash generated from operations, net of $ 73. 0 million cash contributions ( including $ 54. 7 million discretionary contributions ) to company 2019s domestic pension plans ; ii ) $ 445. 5 million cash from collections finance receivables ; iii ) $ 46. 8 million proceeds from stock purchase and option plan exercises ; iv ) $ 27. 0 million cash proceeds from sale of non-strategic equity investment at book value.
 increases in cash and cash equivalents partially offset by funding of $ 569. 6 million new finance originations ; ii dividend payments of $ 81. 5 million ; iii funding of $ 79. 4 million capital expenditures ; iv ) repurchase of 1180000 shares of company 2019s common stock for $ 78. 1 million.
 of $ 214. 5 million cash and cash equivalents as of 2012 year end, $ 81. 4 million held outside united states.
 snap-on considers these non-u. s.
 funds as permanently invested in foreign operations to provide adequate working capital ; satisfy regulatory requirements/or take advantage of business expansion opportunities ; company does not expect to repatriate these funds to fund.
 operations or obligations.
 repatriation of cash from certain foreign subsidiaries could have adverse net tax consequences on company should snap-on required to pay record.
 income taxes and foreign withholding taxes on funds previously considered permanently invested.
 alternatively repatriation of such cash from certain other foreign subsidiaries could result in favorable net tax consequences for company.
 snap-on periodically evaluates opportunities to repatriate certain foreign cash amounts to does not incur additional unfavorable net tax consequences.
 44 snap-on incorporated

( amounts in millions )                      | 2012             | 2011
-------------------------------------------- | ---------------- | ----------------
cash and cash equivalents                    | $ 214.5          | $ 185.6
trade and other accounts receivable 2013 net | 497.9            | 463.5
finance receivables 2013 net                 | 323.1            | 277.2
contract receivables 2013 net                | 62.7             | 49.7
inventories 2013 net                         | 404.2            | 386.4
other current assets                         | 166.6            | 168.3
total current assets                         | 1669.0           | 1530.7
notes payable                                | -5.2 ( 5.2 )     | -16.2 ( 16.2 )
accounts payable                             | -142.5 ( 142.5 ) | -124.6 ( 124.6 )
other current liabilities                    | -441.5 ( 441.5 ) | -443.0 ( 443.0 )
total current liabilities                    | -589.2 ( 589.2 ) | -583.8 ( 583.8 )
working capital                              | $ 1079.8         | $ 946.9


illumina , inc.
 notes to consolidated financial statements 2014 ( continued ) advertising costs company expenses advertising costs incurred.
 were approximately $ 440000 for 2003  $ 267000 for 2002 $ 57000 for 2001.
 income taxes deferred income tax asset or liability computed for expected future impact of differences between financial reporting tax bases of assets liabilities expected future tax benefit from tax loss and credit carryforwards.
 deferred income tax expense is generally net change during year in deferred income tax asset or liability.
 valuation allowances established when realizability of deferred tax assets uncertain.
 effect of tax rate changes reflected in tax expense during period changes enacted.
 foreign currency translation functional currencies of company 2019s wholly owned subsidiaries are their respective local currencies.
 all balance sheet accounts of operations translated to.
 dollars using exchange rates in effect at balance sheet date revenues and expenses translated using average exchange rates in effect during period.
 gains and losses from foreign currency translation of subsidiaries 2019 financial statements recorded as separate component of stockholders 2019 equity under caption 2018 2018accumulated other comprehensive income. 2019 2019 stock-based compensation at december 28 , 2003  company has three stock-based employee and non-employee director compensation plans described in note 5.
 permitted by sfas no.
 123  accounting for stock-based compensation  company accounts for common stock options granted restricted stock sold  to employees  founders directors using intrinsic value method recognizes no compensation expense for options granted  or restricted stock sold , with exercise prices equal to or greater than fair value of company 2019s common stock on date of grant.
company recorded deferred stock compensation stock options restricted stock  granted prior to company 2019s initial public offering exercise prices below estimated fair value ( see note 5 ) amortized on accelerated amortiza- tion methodology financial accounting standards board interpretation number ( 2018 2018fin 2019 2019 ) 28.
 pro forma information net loss required by sfas no.
 123 determined if company accounted for employee stock options employee stock purchases under fair value method.
 fair value for options estimated at dates of grant using fair value option pricing model ( black scholes ) weighted-average assumptions for 2003  2002 2001 : year ended december 28  december 29  december 30 2003 2002 2001 weighted average risk-free interest rate******* 3. 03% ( 3. 03 % ) 3. 73% ( 3. 73 % ) 4. 65% ( 4. 65 % ) expected dividend yield********************* 0% ( 0 % ) 0% ( 0 % ) 0% ( 0 % ) weighted average volatility 103% ( 103 % ) 104% ( 104 % ) 119% ( 119 % ) estimated life ( in years ) 5 5 5.

| year ended december 28 2003 | year ended december 29 2002 | year ended december 30 2001
---------------------------------------------- | --------------------------- | --------------------------- | ---------------------------
weighted average risk-free interest rate       | 3.03% ( 3.03 % )            | 3.73% ( 3.73 % )            | 4.65% ( 4.65 % )
expected dividend yield                        | 0% ( 0 % )                  | 0% ( 0 % )                  | 0% ( 0 % )
weighted average volatility                    | 103% ( 103 % )              | 104% ( 104 % )              | 119% ( 119 % )
estimated life ( in years )                    | 5                           | 5                           | 5
weighted average fair value of options granted | $ 3.31                      | $ 4.39                      | $ 7.51


average age ( yrs. ) highway revenue equipment owned leased total.
 capital expenditures our rail network requires significant annual capital investments for replacement improvement expansion.
 these investments enhance safety support transportation needs customers improve operational efficiency.
 we add new locomotives freight cars to fleet to replace older less efficient equipment support growth customer demand reduce impact on environment through acquisition of more fuel-efficient low-emission locomotives.
 2014 capital program 2013 during 2014  capital program totaled $ 4. 1 billion.
 ( see cash capital expenditures table in management 2019s discussion analysis of financial condition results of operations 2013 liquidity and capital resources 2013 financial condition , item 7. ) 2015 capital plan 2013 2015 expect capital plan to be approximately $ 4. 3 billion  include expenditures for ptc of approximately $ 450 million may include non-cash investments.
 may revise 2015 capital plan if business conditions warrant or if new laws or regulations affect generate sufficient returns on investments.
 see discussion of 2015 capital plan in management 2019s discussion analysis of financial condition results of operations 2013 2015 outlook , item 7. ) equipment encumbrances 2013 equipment with carrying value of approximately $ 2. 8 billion and $ 2. 9 billion at december 31 , 2014 2013  served as collateral for capital leases other equipment obligations in with secured financing arrangements to acquire or refinance railroad equipment.
 result of merger of missouri pacific railroad company ( mprr ) with into uprr on january 1 , 1997  indentures for mprr mortgage bonds uprr must maintain same value of assets after merger to comply with security requirements of mortgage bonds.
 as of merger date value of mprr assets that secured mortgage bonds was approximately $ 6. 0 billion.
accordance with terms of indentures , collateral value must be maintained during entire term of mortgage bonds irrespective of outstanding balance bonds.
 environmental matters 2013 certain properties subject to federal , state local laws regulations governing protection of environment.
 ( see discussion of environmental issues in business 2013 governmental and environmental regulation , item 1 , management 2019s discussion analysis of financial condition and results of operations 2013 critical accounting policies 2013 environmental , item 7. ) item 3.
 legal proceedings from time to time  we involved in legal proceedings , claims  litigation in connection with our business.
 routinely assess liabilities and contingencies connection matters based latest available information when necessary seek input from third-party advisors assessments.
 consistent with sec rules requirements  describe below material pending legal proceedings ( other than ordinary routine litigation incidental to business ) , material proceedings known to contemplated by governmental authorities , other proceedings arising under federal  state local environmental laws regulations ( including governmental proceedings involving potential fines , penalties  other monetary sanctions in excess of $ 100000 ) other pending matters we determine appropriate.

highway revenue equipment       | owned | leased | total | averageage ( yrs. )
------------------------------- | ----- | ------ | ----- | -------------------
containers                      | 26629 | 28306  | 54935 | 7.1
chassis                         | 15182 | 25951  | 41133 | 8.9
total highway revenue equipment | 41811 | 54257  | 96068 | n/a


notional amount unfunded letters of credit was $ 1. 4 billion as of december 31 , 2008 and 31 2007.
 amount funded was insignificant no amounts 90 days or more past due or non-accrual status at december 31  2008 and 31 2007.
 items classified in trading account assets or liabilities on consolidated balance sheet.
 changes in fair value items classified in principal transactions in company 2019s consolidated statement of income.
 other items for fair-value option selected in accordance with sfas 159 company elected fair-value option for following eligible items not affect opening retained earnings : 2022 certain credit products ; 2022 certain investments in private equity and real estate ventures certain equity-method investments ; 2022 certain structured liabilities ; 2022 non-structured liabilities ; 2022 certain mortgage loans certain credit products citigroup elected fair-value option for certain originated and purchased loans  including certain unfunded loan products  guarantees and letters of credit  executed by citigroup 2019s trading businesses.
 none credit products is highly leveraged financing commitment.
 significant groups of transactions include loans and unfunded loan products expected to be sold or securitized in near term or transactions where economic risks hedged with derivative instruments purchased credit default swaps or total return swaps company pays total return on underlying loans to third party.
 citigroup elected fair-value option to mitigate accounting mismatches hedge accounting complex achieve operational simplifications.
 fair value not elected for most lending transactions across company including where management objectives not met.
 table provides information about certain credit products carried at fair value:.
millions dollars trading assets loans carrying amount reported consolidated balance sheet $ 16254 $ 2315 $ 26020 $ 3038 aggregate unpaid principal balance in excess of fair value $ 6501 $ 3 $ 899 $ ( 5 ) balance on non-accrual loans loans more than 90 days past due $ 77 $ 1113 $ 186 $ 1292 aggregate unpaid principal balance excess of fair value for non-accrual loans loans more 90 days past due $ 190 $ ( 4 ) $ 68 $ 2014 addition amounts $ 72 million $ 141 million unfunded loan commitments related certain credit products selected for fair-value accounting outstanding as of december 31 , 2008 december 31 , 2007 respectively.
 changes in fair value of funded unfunded credit products classified in principal transactions in company 2019s consolidated statement of income.
 related interest revenue measured based contractual interest rates reported as interest revenue on trading account assets or loans depending balance sheet classifications.
 changes in fair value for years ended december 31 , 2008 2007 due to instrument-specific credit risk totaled loss of $ 38 million and $ 188 million  respectively.
 certain investments in private equity real estate ventures certain equity method investments citigroup invests private equity real estate ventures for earning investment returns capital appreciation.
 company elected fair-value option for certain ventures investments similar to private equity hedge fund activities investment companies reported at fair value.
 fair-value option brings consistency in accounting evaluation of investments.
 required by sfas 159  all investments ( debt and equity ) in private equity real estate entities accounted for at fair value.
 investments classified as investments on citigroup 2019s consolidated balance sheet.
 citigroup holds non-strategic investments in leveraged buyout funds hedge funds previously required to be accounted for under equity method.
 company elected fair-value accounting to reduce operational accounting complexity.
 funds account for all underlying assets at fair value impact of applying equity method to citigroup 2019s investment in funds equivalent to fair-value accounting.
 fair-value election no impact on opening retained earnings.
 investments classified as other assets on citigroup 2019s consolidated balance sheet.
 changes in fair values investments classified in other revenue in company 2019s consolidated statement of income.
 certain structured liabilities company elected fair-value option for certain structured liabilities performance linked to structured interest rates  inflation or currency risks ( 201cstructured liabilities 201d ).
 company elected fair- value option these exposures considered trading-related positions managed on fair-value basis.
 positions continue classified as debt , deposits derivatives ( trading account liabilities ) on company 2019s consolidated balance sheet legal form.
 for structured liabilities classified as long-term debt for which fair-value option elected aggregate unpaid principal balance exceeds aggregate fair value of instruments by $ 277 million as of december 31 , 2008 and $ 7 million as of december 31 , 2007.
 change in fair value for these structured liabilities reported in principal transactions in company 2019s consolidated statement of income.
 related interest expense measured based on contractual interest rates reported as such in consolidated income statement.
 certain non-structured liabilities company elected fair-value option for certain non-structured liabilities with fixed and floating interest rates ( 201cnon-structured liabilities 201d ).

in millions of dollars                                                                                | 2008 trading assets | 2008 loans | 2008 trading assets | loans
------------------------------------------------------------------------------------------------------------------- | ------------------- | ---------- | ------------------- | ----------
carrying amount reported on the consolidated balance sheet                                                          | $ 16254             | $ 2315     | $ 26020             | $ 3038
aggregate unpaid principal balance in excess of fair value                                                          | $ 6501              | $ 3        | $ 899               | $ -5 ( 5 )
balance on non-accrual loans or loans more than 90 days past due                                                    | $ 77                | $ 1113     | $ 186               | $ 1292
aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days pastdue | $ 190               | $ -4 ( 4 ) | $ 68                | $ 2014


2017 form 10-k | 115 and $ 1088 million  respectively primarily of loans to dealers spc 2019s liabilities of $ 1106 million and $ 1087 million respectively primarily of commercial paper.
 assets spc not available to pay cat financial 2019s creditors.
 cat financial may be obligated to perform under guarantee if spc experiences losses.
 no loss experienced or anticipated under this loan purchase agreement.
 cat financial party to agreements normal business with selected customers and caterpillar dealers commit to provide set dollar amount of financing on pre- approved basis.
 also provide lines of credit to certain customers caterpillar dealers portion remains unused as of end of period.
 commitments and lines of credit have fixed expiration dates or termination clauses.
 cat financial experience not all commitments and lines of credit used.
 management applies same credit policies when making commitments and granting lines of credit as for other financing.
 cat financial not require collateral for commitments/ lines if credit extended collateral may be required upon funding.
 amount of unused commitments and lines of credit for dealers as of december 31, 2017 and 2016 was $ 10993 million and $ 12775 million respectively.
 amount unused commitments and lines of credit for customers as of december 31, 2017 and 2016 was $ 3092 million and $ 3340 million respectively.
 product warranty liability determined by applying historical claim rate experience to current field population and dealer inventory.
 historical claim rates based on actual warranty experience for each product by machine model/engine size by customer or dealer location ( inside or outside north america ).
 specific rates developed for each product shipment month updated monthly based on actual warranty claim experience.
.
environmental legal matters company regulated by federal  state international environmental laws governing our use , transport disposal of substances control of emissions.
 in to governing our manufacturing other operations these laws impact development of our products  including not to required compliance with air emissions standards applicable to internal combustion engines.
 we made will continue to make significant research development capital expenditures to comply with these emissions standards.
 engaged in remedial activities at number of locations  often with other companies  pursuant to federal state laws.
 when probable we will pay remedial costs at site costs can be reasonably estimated investigation , remediation  operating maintenance costs are accrued against our earnings.
 costs accrued based on consideration of available data information with to each individual site  including available technologies , current applicable laws regulations  prior remediation experience.
 where no amount within range of estimates more likely , we accrue minimum.
 where multiple potentially responsible parties involved we consider our proportionate share of probable costs.
 in formulating estimate of probable costs do not consider amounts expected to be recovered from insurance companies or others.
 reassess accrued amounts on quarterly basis.
 amount recorded for environmental remediation not material included in accrued expenses.
 believe no more than remote chance that material amount for remedial activities at any individual site or at all sites in aggregate will be required.
 on january 7 , 2015  company received grand jury subpoena from u. s.
 district court for central district of illinois.
 subpoena requests documents information from company relating to  financial information concerning u. s.
 and non-u. s.
 caterpillar subsidiaries ( including undistributed profits of non-u. s.
subsidiaries movement of cash among u. s.
 and non-u. s.
 subsidiaries ).
 company received additional subpoenas relating to investigation requesting additional documents and information relating to  purchase and resale of replacement parts by caterpillar inc.
 and non-u. s.
 caterpillar subsidiaries  dividend distributions of certain non-u. s.
 caterpillar subsidiaries caterpillar sarl and related structures.
 on march 2-3 , 2017 , agents with department of commerce, federal deposit insurance corporation internal revenue service executed search and seizure warrants at three facilities of company in peoria , illinois area including former corporate headquarters.
 warrants identify  agents seized documents and information related to export of products from united states movement of products between united states and switzerland  relationship between caterpillar inc.
 and caterpillar sarl  sales outside united states.
 company understanding warrants  concern tax and export activities related to ongoing grand jury investigation.
 company continuing to cooperate with investigation.
 company unable to predict outcome or estimate potential loss ; believe matter will not have material adverse effect on company 2019s consolidated results of operations , financial position or liquidity.
 on march 20 , 2014 , brazil 2019s administrative council for economic defense ( cade ) published technical opinion named 18 companies and over 100 individuals as defendants including two subsidiaries of caterpillar inc. , mge - equipamentos e servi e7os ferrovi e1rios ltda.
 mge and caterpillar brasil ltda.
 publication technical opinion opened cade 2019s official administrative investigation into allegations that defendants participated in anticompetitive bid activity for construction and maintenance of metro and train networks in brazil.
 companies be

( millions of dollars )                  | 2017         | 2016
---------------------------------------- | ------------ | ------------
warranty liability january 1             | $ 1258       | $ 1354
reduction in liability ( payments )      | -860 ( 860 ) | -909 ( 909 )
increase in liability ( new warranties ) | 1021         | 813
warranty liability december 31           | $ 1419       | $ 1258


entergy corporation subsidiaries management 2019s financial discussion analysis imprudence by utility operating companies in execution obligations under system agreement.
 see note 2 to financial statements for discussions litigation.
 in november 2012 utility operating companies filed amendments to system agreement with ferc pursuant to section 205 of federal power act.
 amendments consist primarily of technical revisions needed to system agreement to allocate certain charges credits from miso settlement statements to participating utility operating companies ; address entergy arkansas 2019s withdrawal from system agreement.
 lpsc , mpsc , puct , city council filed protests at ferc regarding amendments aspects utility operating companies 2019 future operating arrangements including requests continued viability of system agreement in miso other issues ) be set for hearing by ferc.
 in december 2013 ferc issued order accepting revisions filed in november 2012  subject to further compliance filing other conditions.
 entergy services made requisite compliance filing in february 2014 ferc accepted compliance filing in november 2015.
 november 2015 order  ferc required entergy services to file refund report results of intra-system bill rerun from december 19 , 2013 through november 30 , 2015 calculating use of energy-based allocator to allocate losses , ancillary services charges credits  uplift charges credits to load of each participating utility operating company.
 filing shows following payments receipts among utility operating companies : payments ( receipts ) ( in millions ).
 in december 2013 order  ferc set one issue for hearing involving settlement with union pacific regarding certain coal delivery issues.
 consistent with decisions entergy arkansas 2019s participation in system agreement terminated effective december 18 , 2013.
december 2014 ferc alj issued initial decision finding entergy arkansas would realize benefits after december 18 , 2013 from 2008 settlement agreement between entergy services , entergy arkansas  union pacific  related to certain coal delivery issues.
 alj found all utility operating companies should share in benefits methodology proposed by mpsc.
 utility operating companies and other parties to proceeding filed briefs on exceptions and/or briefs opposing exceptions with ferc challenging aspects december 2014 initial decision matter pending before ferc.
 utility operating company notices of termination of system agreement participation consistent with written notices of termination delivered in december 2005 and november 2007  entergy arkansas and entergy mississippi filed with ferc in february 2009 notices of cancellation to terminate participation in system agreement  effective december 18 , 2013 and november 7 , 2015 .
 november 2009 ferc accepted notices of cancellation determined entergy arkansas and entergy mississippi permitted to withdraw from system agreement following 96-month notice period without payment of fee or requirement to otherwise compensate remaining utility operating companies as result of withdrawal.
 appeals by lpsc and city council denied in 2012 and 2013.
 effective december 18 , 2013  entergy arkansas ceased participating in system agreement.
 effective november 7 , 2015 , entergy mississippi ceased participating in system agreement.
 prior commitments after evaluation of basis for reasonableness of 96-month system agreement termination notice period utility operating companies filed with ferc in october 2013 to amend system agreement changing notice period for operating company to

| payments ( receipts ) ( in millions )
------------------- | -------------------------------------
entergy louisiana   | ( $ 6.3 )
entergy mississippi | $ 4
entergy new orleans | $ 0.4
entergy texas       | $ 1.9


reconciliation of beginning and ending unrecognized tax benefits is follows:.
 ) amounts reflect settlements with irs and cra discussed below.
 if company recognize unrecognized tax benefits of $ 3. 5 billion at december 31 , 2013  income tax provision would reflect favorable net impact of $ 3. 3 billion.
 company under examination by numerous tax authorities in various jurisdictions globally.
 company believes possible total unrecognized tax benefits as of december 31 , 2013 could decrease by up to $ 128 million in next 12 months of audit closures settlements or expiration of statute of limitations.
 finalization of company 2019s examinations with taxing authorities can include formal administrative and legal proceedings could significant impact on timing of reversal of unrecognized tax benefits.
 company believes reserves for uncertain tax positions adequate to cover existing risks exposures.
 interest and penalties associated with uncertain tax positions amounted to benefit of $ 319 million in 2013  $ 88 million in 2012 and $ 95 million in 2011.
 amounts reflect beneficial impacts of tax settlements  including discussed.
 liabilities for accrued interest and penalties were $ 665 million and $ 1. 2 billion as of december 31 , 2013 and 2012  respectively.
 in 2013  internal revenue service ( ) finalized examination of schering-plough 2019s 2007-2009 tax years.
 company 2019s unrecognized tax benefits for years under examination exceeded adjustments related to this examination period company recorded net $ 165 million tax provision benefit in 2013.
 in 2010  irs finalized examination of schering-plough 2019s 2003-2006 tax years.
 audit cycle company reached agreement with irs on adjustment to income related to intercompany pricing matters.
income adjustment reduced nols and tax credit carryforwards.
 company 2019s reserves for uncertain tax positions adequate to cover all adjustments related to examination period.
 company seeking resolution of one issue raised during examination through irs administrative appeals process.
 in 2013  company recorded out-of-period net tax benefit of $ 160 million related to this issue settled in fourth quarter of 2012 final resolution to interest owed reached in first quarter of 2013.
 company 2019s unrecognized tax benefits related to issue exceeded settlement amount.
 management concluded exclusion of benefit not material to current or prior year financial statements.
 canada revenue agency ( 201ccra 201d ) proposed adjustments for 1999 and 2000 relating to intercompany pricing matters in july 2011  cra issued assessments for other miscellaneous audit issues for tax years 2001-2004.
 in 2012  merck and cra reached settlement for these years calls for merck to pay additional canadian tax of approximately $ 65 million.
 company 2019s unrecognized tax benefits related to these matters exceeded settlement amount company recorded net $ 112 million tax provision benefit in 2012.
 portion of taxes paid expected to be creditable for u. s.
 tax purposes.
 company had previously established reserves for these matters.
 resolution of these matters did not have material effect on company 2019s results of operations , financial position or liquidity.
 in 2011  irs concluded examination of merck 2019s 2002-2005 federal income tax returns company required to make net payments of approximately $ 465 million.
 company 2019s unrecognized tax benefits for years under examination exceeded adjustments related to this examination period company recorded net $ 700 million tax provision benefit in 2011.
net benefit reflects decrease unrecognized tax benefits years under examination partially offset by increases unrecognized tax benefits years subsequent table of contents

| 2013         | 2012         | 2011
------------------------------------------------- | ------------ | ------------ | --------------
balance january 1                                 | $ 4425       | $ 4277       | $ 4919
additions related to current year positions       | 320          | 496          | 695
additions related to prior year positions         | 177          | 58           | 145
reductions for tax positions of prior years ( 1 ) | -747 ( 747 ) | -320 ( 320 ) | -1223 ( 1223 )
settlements                                       | -603 ( 603 ) | -67 ( 67 )   | -259 ( 259 )
lapse of statute of limitations                   | -69 ( 69 )   | -19 ( 19 )   | 2014
balance december 31                               | $ 3503       | $ 4425       | $ 4277


item 1.
 business cna financial corporation 2013 ( continued ) unpredictability in law , insurance underwriting expected to continue difficult in commercial lines  professional liability specialty coverages.
 dodd-frank wall street reform and consumer protection act expands federal presence in insurance oversight may increase regulatory requirements to cna may subject.
 act 2019s requirements include streamlining state-based regulation of reinsurance nonadmitted insurance ( property casualty insurance from insurers eligible to accept insurance but not licensed to write insurance in particular state ).
 act establishes new federal insurance office within u. s.
 department of treasury with powers over all lines of insurance except health insurance  certain long term care insurance crop insurance , to monitor insurance industry  identify issues in regulation of insurers contribute to systemic crisis in insurance industry financial system  coordinate federal policy on international insurance matters preempt state insurance measures under certain circumstances.
 act calls for studies contemplates further regulation.
 patient protection and affordable care act related amendments in health care and education reconciliation act may increase cna 2019s operating costs underwriting losses.
 landmark legislation may lead to changes in health care industry could create additional operating costs for cna  particularly with respect to workers 2019 compensation long term care products.
 costs might arise through increased use of health care services by claimants or increased complexities in health care bills require additional levels review.
 due to expected number of new participants in health care system potential for additional malpractice claims  cna may experience increased underwriting risk in lines of business provide management and professional liability insurance to individuals businesses engaged in health care industry.
 lines of business provide professional liability insurance to attorneys , accountants other professionals who advise clients regarding health care reform legislation may experience increased underwriting risk due to complexity of legislation.
chicago location owned by ccc , wholly owned subsidiary of cna  houses cna 2019s principal executive offices.
 cna owns or leases office space in various cities throughout united states and other countries.
 following table sets information cna 2019s principal office locations : location ( square feet ) principal usage 333 s.
 wabash avenue 763322 principal executive offices of cna chicago , illinois 401 penn street 190677 casualty insurance offices reading , pennsylvania 2405 lucien way 116948 casualty insurance maitland , florida 40 wall street 114096 new york, new york 1100 ward avenue 104478 honolulu , hawaii 101 s.
 phillips avenue 83616 sioux falls , south dakota 600 n.
 pearl street 65752 offices dallas , texas 1249 s.
 river road 50366 offices cranbury , new jersey 4267 meridian parkway 46903 data center aurora , illinois 675 placentia avenue 46571 casualty insurance offices brea , california cna leases office space except for chicago , illinois building , reading , pennsylvania building , and aurora , illinois building , are owned.
 item 1.
 business cna financial corporation 2013 ( continued ) unpredictability in law , insurance underwriting expected to continue be difficult in commercial lines , professional liability other specialty coverages.
 dodd-frank wall street reform and consumer protection act expands federal presence in insurance oversight may increase regulatory requirements to cna may subject.
act 2019s requirements include streamlining state-based regulation of reinsurance nonadmitted insurance ( property or casualty insurance placed from insurers eligible to accept insurance not licensed to write insurance in particular state ).
 act establishes a new federal insurance office within u. s.
 department of treasury with powers over all lines of insurance except health insurance  certain long term care insurance crop insurance , to monitor insurance industry  identify issues in regulation insurers contribute to systemic crisis in insurance industry financial system  coordinate federal policy on international insurance matters preempt state insurance measures under certain circumstances.
 act calls for studies contemplates further regulation.
 patient protection and affordable care act related amendments in health care and education reconciliation act may increase cna 2019s operating costs underwriting losses.
 this landmark legislation may lead to changes in health care industry could create additional operating costs for cna , particularly with workers 2019 compensation long term care products.
 these costs might arise through increased use of health care services by claimants or increased complexities in health care bills require additional review.
 due to expected number of new participants in health care system potential for additional malpractice claims  cna may experience increased underwriting risk in lines of business provide management professional liability insurance to individuals businesses in health care industry.
 lines of business provide professional liability insurance to attorneys , accountants professionals who advise clients regarding health care reform legislation may experience increased underwriting risk due to complexity of legislation.
 properties : chicago location owned by ccc , wholly owned subsidiary of cna , houses cna 2019s principal executive offices.
 cna owns or leases office space in various cities throughout united states other countries.
 following table sets information to cna 2019s principal office locations : location ( square feet ) principal usage 333 s.
wabash avenue 763322 principal executive offices cna chicago, illinois 401 penn street 190677 casualty insurance offices reading , pennsylvania 2405 lucien way 116948 insurance offices maitland , florida 40 wall street 114096 insurance offices new york new york 1100 ward avenue 104478 insurance offices honolulu , hawaii 101 s.
 phillips avenue 83616 insurance offices sioux falls  south dakota 600 n.
 pearl street 65752 casualty insurance offices dallas , texas 1249 s.
 river road 50366 casualty insurance offices cranbury, new jersey 4267 meridian parkway 46903 data center aurora , illinois 675 placentia avenue 46571 casualty insurance offices brea , california cna leases office space except chicago , illinois building  reading , pennsylvania building  aurora , illinois building , owned.

location                                        | size ( square feet ) | principal usage
----------------------------------------------- | -------------------- | ---------------------------------------
333 s . wabash avenuechicago illinois           | 763322               | principal executive offices of cna
401 penn streetreading pennsylvania             | 190677               | property and casualty insurance offices
2405 lucien waymaitland florida                 | 116948               | property and casualty insurance offices
40 wall streetnew york new york                 | 114096               | property and casualty insurance offices
1100 ward avenuehonolulu hawaii                 | 104478               | property and casualty insurance offices
101 s . phillips avenuesioux falls south dakota | 83616                | property and casualty insurance offices
600 n . pearl streetdallas texas                | 65752                | property and casualty insurance offices
1249 s . river roadcranbury new jersey          | 50366                | property and casualty insurance offices
4267 meridian parkwayaurora illinois            | 46903                | data center
675 placentia avenuebrea california             | 46571                | property and casualty insurance offices


future minimum lease commitments for office premises and equipment under non-cancelable leases with minimum sublease rental income received under non-cancelable are as follows : period rent obligations sublease rental income net rent.
 guarantees certain contingent obligations under guarantees of our subsidiaries ( 201cparent company guarantees 201d ) relating principally to credit facilities , guarantees of media payables operating leases.
 amount of parent company guarantees was $ 327. 1 and $ 327. 9 as of december 31, 2007 and 2006 , respectively.
 in event of non-payment by applicable subsidiary of obligations covered by guarantee we obligated to pay amounts covered by guarantee.
 as of december 31, 2007  no material assets pledged as security for such parent company guarantees.
 contingent acquisition obligations structured certain acquisitions with additional contingent purchase price obligations to reduce potential risk with negative future performance of acquired entity.
 entered into agreements may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries.
 amounts to these transactions based on estimates of future financial performance of acquired entity timing of exercise of rights changes in foreign currency exchange rates other factors.
 not recorded liability for these items since definitive amounts payable not determinable or distributable.
 when contingent acquisition obligations met and consideration determinable and distributable we record fair value of this consideration as additional cost of acquired entity.
 recognize deferred payments and purchases of additional interests after effective date of purchase contingent upon future employment of owners as compensation expense.
 compensation expense determined based on terms and conditions of acquisition agreements and employment terms of former owners of acquired businesses.
future expense not allocated to assets and liabilities acquired amortized over required employment terms of former owners.
 following table details estimated liability with respect to contingent acquisition obligations estimated amount paid under options , in event of exercise at earliest exercise date.
 all payments contingent upon achieving projected operating performance targets satisfying other notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts )

period              | rent obligations | sublease rental income | net rent
------------------- | ---------------- | ---------------------- | --------
2008                | $ 323.9          | $ -40.9 ( 40.9 )       | $ 283.0
2009                | 300.9            | -37.5 ( 37.5 )         | 263.4
2010                | 267.7            | -31.0 ( 31.0 )         | 236.7
2011                | 233.7            | -25.7 ( 25.7 )         | 208.0
2012                | 197.9            | -20.2 ( 20.2 )         | 177.7
2013 and thereafter | 871.0            | -33.1 ( 33.1 )         | 837.9
total               | $ 2195.1         | $ -188.4 ( 188.4 )     | $ 2006.7