backlog applied manufactures systems to meet demand represented by order backlog and customer commitments.
 backlog consists of : ( 1 ) orders for written authorizations accepted assigned shipment dates within next 12 months  or shipment occurred but revenue not recognized ; ( 2 ) contractual service revenue and maintenance fees earned within next 12 months.
 backlog by reportable segment as of october 27 , 2013 and october 28 , 2012 was follows : 2013 2012 ( in millions , except percentages ).
 applied 2019s backlog on date not indicative of actual sales for future periods due to potential for customer changes in delivery schedules or cancellation of orders.
 customers may delay delivery products or cancel orders prior to shipment subject to possible cancellation penalties.
 delays in delivery schedules/or reduction of backlog during period could have adverse effect on applied 2019s business results of operations.
 manufacturing , raw materials supplies applied 2019s manufacturing activities consist primarily of assembly , test integration of proprietary commercial parts , components subassemblies ( collectively  parts ) used to manufacture systems.
 applied implemented distributed manufacturing model manufacturing supply chain activities conducted in various countries including united states  europe  israel  singapore  taiwan other countries in asia  assembly some systems completed at customer sites.
 applied uses numerous vendors  including contract manufacturers to supply parts assembly services for manufacture support of products.
 applied efforts to assure parts available from multiple qualified suppliers not always possible.
 some key parts may be obtained from single supplier or limited group of suppliers.
applied seeks to reduce costs lower risks of manufacturing service interruptions by : 1 selecting qualifying alternate suppliers for key parts 2 monitoring financial condition of key suppliers 3 maintaining appropriate inventories of key parts 4 qualifying new parts timely basis 5 ) locating manufacturing operations in close proximity to suppliers customers.
 research , development engineering applied 2019s long-term growth strategy requires continued development of new products.
 company 2019s significant investment in research , development engineering ( rd&e ) enabled it to deliver new products technologies before emergence strong demand  allowing customers to incorporate these products into manufacturing plans at early stage in technology selection cycle.
 applied works closely with global customers to design systems processes meet planned technical production requirements.
 product development engineering organizations located primarily in united states  europe , israel  taiwan  china.
 in applied outsources certain rd&e activities  some performed outside united states  primarily in india.
 process support customer demonstration laboratories located in united states  china  taiwan  europe  israel.
 applied 2019s investments in rd&e for product development engineering programs to create improve products technologies over last three years were : $ 1. 3 billion ( 18 percent of net sales ) in fiscal 2013 , $ 1. 2 billion ( 14 percent of net sales ) in fiscal 2012  $ 1. 1 billion ( 11 percent of net sales ) in fiscal 2011.
 applied spent average of 14 percent of net sales in rd&e over last five years.
 in addition to rd&e for specific product technologies applied maintains ongoing programs for automation control systems  materials research  environmental control applicable to its products.

| 2013   | 2012           |        | ( in millions except percentages )
---------------------------------- | ------ | -------------- | ------ | ----------------------------------
silicon systems group              | $ 1295 | 55% ( 55 % )   | $ 705  | 44% ( 44 % )
applied global services            | 591    | 25% ( 25 % )   | 580    | 36% ( 36 % )
display                            | 361    | 15% ( 15 % )   | 206    | 13% ( 13 % )
energy and environmental solutions | 125    | 5% ( 5 % )     | 115    | 7% ( 7 % )
total                              | $ 2372 | 100% ( 100 % ) | $ 1606 | 100% ( 100 % )


security ownership of 5% ( 5 % ) holders, directors nominees executive officers name beneficial owner shares common stock beneficially owned ( 1 ) percent common stock outstanding.
 current executive officers directors group ( 15 persons ).
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 9378423 ( 15 ) 1. 09% ( 1. 09 % ) 1 ) represents shares of common stock held/or options held by individuals exercisable at table date or within 60 days thereafter.
 not include options restricted stock units vest after 60 days.
 share numbers adjusted to reflect company 2019s two-for-one stock split in february 2005.
 2 ) based form 13g/a filed february 14, 2005 by fmr corp.
.
 address 82 devonshire street  boston , ma 02109 .
 3 ) based form 13f filed january 25, 2006 by barclays global investors.
 investors address 45 fremont street  san francisco, ca 94105.
 4 ) includes 120000 shares of common stock.
 jobs right to acquire by exercise stock options.
 5 ) includes 220000 shares of common stock mr.
 campbell right to acquire by exercise stock options.
 6 ) excludes 600000 unvested restricted stock units.
 7 ) includes 40000 shares of common stock mr.
 drexler holds indirectly 180000 shares of common stock mr.
 drexler right to acquire by exercise of stock options.
 ( 8 ) consists of 60000 shares of common stock mr.
 right to acquire by exercise stock options.
( 9 ) includes 1900000 shares common stock mr.
 johnson right acquire stock options excludes 450000 unvested restricted stock units.
 ( 10 ) includes 2000 shares common stock dr.
 levinson holds indirectly 100000 shares common stock dr.
 levinson right acquire exercise stock options.
 ( 11 ) excludes 450000 unvested restricted stock units.
 ( 12 ) excludes 400000 unvested restricted stock units.

name of beneficial owner fidelity investments                          | name of beneficial owner 57162311 | -2 ( 2 )   | 6.65% ( 6.65 % )
---------------------------------------------------------------------- | --------------------------------- | ---------- | ----------------
alliancebernstein lp                                                   | 48637731                          | -3 ( 3 )   | 5.66% ( 5.66 % )
steven p . jobs                                                        | 5546451                           | -4 ( 4 )   | *
william v . campbell                                                   | 221004                            | -5 ( 5 )   | *
timothy d . cook                                                       | 12597                             | -6 ( 6 )   | *
millard s . drexler                                                    | 220000                            | -7 ( 7 )   | *
albert a . gore jr .                                                   | 60000                             | -8 ( 8 )   | *
ronald b . johnson                                                     | 2049890                           | -9 ( 9 )   | *
arthur d . levinson                                                    | 362400                            | -10 ( 10 ) | *
peter oppenheimer                                                      | 149768                            | -11 ( 11 ) | *
philip w . schiller                                                    | 256                               | -12 ( 12 ) | *
eric e . schmidt                                                       | 12284                             | -13 ( 13 ) | *
jerome b . york                                                        | 80000                             | -14 ( 14 ) | *
all current executive officers and directors as a group ( 15 persons ) | 9378423                           | -15 ( 15 ) | 1.09% ( 1.09 % )


n o t e s t c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s continued ) ace limited and subsidiaries share-based compensation expense for stock options and shares issued under employee stock purchase plan ( ) amounted to $ 24 million ( $ 22 million after tax or $ 0. 07 per basic and diluted share ) $ 23 million ( $ 21 million after tax or $ 0. 06 per basic and diluted share ) $ 20 million ( $ 18 million after tax or $ 0. 05 per basic and diluted share ) for years ended december 31 , 2008 , 2007  2006 .
 for years december 2006 expense for restricted stock was $ 101 million ( $ 71 million after tax ), $ 77 million ( $ 57 million after tax ) $ 65 million ( $ 49 million after tax ).
 during 2004  company established ace limited 2004 long-term incentive plan ( 2004 ltip ).
 approved by became effective february 25 , 2004.
 continue in effect until terminated by board.
 plan replaced ace limited 1995 long-term incentive plan  1995 outside directors plan  1998 long incentive plan 1999 replacement long-term incentive plan prior plans outstanding awards.
 during company 2019s 2008 annual general meeting shareholders voted to increase number of common shares authorized to be issued under 2004 ltip from 15000000 to 19000000 common shares.
 under 2004 ltip  total of 19000000 common shares company authorized to be issued pursuant to awards made as stock options , stock appreciation rights  performance shares  performance units  restricted stock  restricted stock units.
maximum number of shares delivered to participants and beneficiaries under 2004 ltip equal to sum of : ( i ) 19000000 shares ; and ( ii ) any shares represented by awards granted under prior plans forfeited , expired or canceled after effective date of 2004 ltip , without delivery of shares or result in forfeiture of shares back to company to extent such shares added back to reserve under terms applicable prior plan.
 as of december 31 , 2008 , total of 10591090 shares remain available for future issuance under this plan.
 under 2004 ltip , 3000000 common shares authorized to be issued under espp.
 as of december 31 , 2008 , total of 989812 common shares remain available for issuance under espp.
 stock options company 2019s 2004 ltip provides for grants of incentive and non-qualified stock options at option price per share of 100 percent of fair value of company 2019s common shares on date of grant.
 stock options generally granted with 3-year vesting period and 10-year term.
 stock options vest in equal annual installments over respective vesting period  also requisite service period.
 included in company 2019s share-based compensation expense in year ended december 31 , 2008 , is cost related to unvested portion of 2005-2008 stock option grants.
 fair value of stock options estimated on date of grant using black-scholes option-pricing model assumptions noted in following table.
 risk-free inter- est rate based on u.
 treasury yield curve in effect at time of grant.
 expected life ( estimated period of time from grant to exercise date ) estimated using historical exercise behavior of employees.
expected volatility calculated as blend of historical volatility based on daily closing prices over period equal to expected life assumption , b ) long- term historical volatility based on daily closing prices over period from ace 2019s initial public trading date through most recent quarter  c ) implied volatility from ace 2019s publicly traded options.
 fair value of options issued estimated on date of grant using black-scholes option-pricing model with weighted-average assumptions used for grants for years indicated:.

| 2008               | 2007               | 2006
----------------------- | ------------------ | ------------------ | ------------------
dividend yield          | 1.80% ( 1.80 % )   | 1.78% ( 1.78 % )   | 1.64% ( 1.64 % )
expected volatility     | 32.20% ( 32.20 % ) | 27.43% ( 27.43 % ) | 31.29% ( 31.29 % )
risk-free interest rate | 3.15% ( 3.15 % )   | 4.51% ( 4.51 % )   | 4.60% ( 4.60 % )
forfeiture rate         | 7.5% ( 7.5 % )     | 7.5% ( 7.5 % )     | 7.5% ( 7.5 % )
expected life           | 5.7 years          | 5.6 years          | 6 years


american tower corporation subsidiaries notes consolidated financial statements 2014 continued ) 7.
 financing arrangements outstanding amounts company 2019s long-term financing arrangements consisted following as of december 31 , ( in thousands ) :.
 credit facilities 2014in october 2005  company refinanced two existing credit facilities principal operating subsidiaries.
 replaced american tower $ 1. 1 billion senior secured credit facility with new $ 1. 3 billion senior secured credit facility replaced existing spectrasite $ 900. 0 million senior secured credit facility with new $ 1. 15 billion senior secured credit facility.
 february 2007 company secured additional $ 550. 0 million credit facilities drew down $ 250. 0 million of existing revolving loans under american tower credit facility.
 see note 19. year ended december 31 , 2006 company drew down remaining amount under delayed draw term loan component american tower credit facility drew down $ 25. 0 million delayed draw term loan component spectrasite credit facility to finance debt redemptions repurchases.
 october 27 , 2006  remaining $ 175. 0 million undrawn portion of delayed draw term loan component spectrasite facility canceled terms.
 as of december 31 , 2006  american tower credit facility consists of : 2022 $ 300. 0 million revolving credit facility  against approximately $ 17. 8 million undrawn letters of credit outstanding at december 31 , 2006  maturing on october 27 , 2010 ; 2022 $ 750. 0 million term loan fully drawn  maturing october 27 , 2010 ; 2022 $ 250. 0 million delayed draw term loan  fully drawn  maturing on october 27 , 2010.
 borrowers under american tower credit facility include ati , american tower , l. p.  american tower international , inc.
 american tower llc.
company borrowers 2019 restricted subsidiaries ( defined in loan agreement ) guaranteed all loans under credit facility.
 loans secured by liens on security interests in all assets borrowers restricted subsidiaries carrying value aggregating approximately $ 4. 5 billion at december 31 , 2006.
 as of december 31 , 2006  spectrasite credit facility consists of following : 2022 a $ 250. 0 million revolving credit facility  against approximately $ 4. 6 million of undrawn letters of credit outstanding at december 31 , 2006  maturing on october 27, 2010;

| 2006               | 2005
------------------------------------------------------------------------ | ------------------ | ------------------
american tower credit facility                                           | $ 1000000          | $ 793000
spectrasite credit facility                                              | 725000             | 700000
senior subordinated notes                                                | 325075             | 400000
senior subordinated discount notes net of discount and warrant valuation |                    | 160252
senior notes net of discount and premium                                 | 728507             | 726754
convertible notes net of discount                                        | 704596             | 773058
notes payable and capital leases                                         | 59838              | 60365
total                                                                    | 3543016            | 3613429
less current portion of other long-term obligations                      | -253907 ( 253907 ) | -162153 ( 162153 )
long-term obligations                                                    | $ 3289109          | $ 3451276


factors , including market price of common stock , general economic market conditions applicable legal requirements.
 repurchase program may be commenced  suspended or discontinued any time.
 in fiscal 2019 , repurchased approximately 2. 1 million shares of common stock for aggregate cost of $ 88. 6 million.
 in fiscal 2018 , repurchased approximately 3. 4 million shares common stock for aggregate cost of $ 195. 1 million.
 as of september 30 , 2019 , had approximately 19. 1 million shares of common stock available for repurchase under program.
 anticipate will to fund capital expenditures  interest payments  dividends stock repurchases  pension payments  working capital needs  note repurchases restructuring activities repayments of current long-term debt other corporate actions for foreseeable future from cash from operations , borrowings under credit facilities  proceeds from a/r sales agreement  proceeds from issuance of debt or equity securities other additional long-term debt financing  including new or amended facilities.
 continually review capital structure conditions in private and public debt markets to optimize mix of indebtedness.
 reviews may seek to refinance existing indebtedness to extend maturities reduce borrowing costs improve terms and composition of indebtedness.
 contractual obligations summarize enforceable legally binding contractual obligations at september 30 , 2019 , effect obligations expected on liquidity and cash flow in future periods in following table.
 certain amounts in table based on management 2019s estimates assumptions about obligations  including duration  possibility of renewal , anticipated actions by third parties other factors  including estimated minimum pension plan contributions estimated benefit payments related to postretirement obligations , supplemental retirement plans deferred compensation plans.
estimates assumptions subjective enforceable legally binding obligations pay in future periods may vary from presented in table.
 ( 1 ) includes only principal payments owed on our debt assuming all long-term debt held to maturity excluding scheduled payments.
 excluded $ 163. 5 million of fair value of debt step-up, deferred financing costs unamortized bond discounts from table to arrive at actual debt obligations.
 see 201cnote 13.
 debt 201d of notes to consolidated financial statements for information on interest rates apply to various debt instruments.
 ( 2 ) see 201cnote 15.
 operating leases 201d notes consolidated financial statements for additional information.
 ( 3 ) fair value step-up of $ 16. 9 million excluded.
 see 201cnote 13.
 debt 2014 capital lease other indebtedness 201d of notes to consolidated financial statements for additional information.
 ( 4 ) purchase obligations include agreements to purchase goods or services enforceable legally binding specify significant terms including fixed or minimum quantities to be purchased ; fixed  minimum variable price provision approximate timing of transaction.
 purchase obligations exclude agreements cancelable without penalty.
 ( 5 ) included in table future estimated minimum pension plan contributions estimated benefit payments related to postretirement obligations supplemental retirement plans deferred compensation plans.
 estimates based on factors discount rates expected returns on plan assets.
 future contributions subject to changes in underfunded status based on factors investment performance  discount rates returns on plan assets changes in legislation.
 possible assumptions may change actual market performance may vary or may decide to contribute different amounts.
 excluded $ 237.2 million multiemployer pension plan withdrawal liabilities recorded september 30 , 2019  including estimate accumulated funding deficiency due to lack of

( in millions )                                                                   | payments due by period total | payments due by period fiscal 2020 | payments due by period fiscal 2021and 2022 | payments due by period fiscal 2023and 2024 | payments due by period thereafter
--------------------------------------------------------------------------------- | ---------------------------- | ---------------------------------- | ------------------------------------------ | ------------------------------------------ | ---------------------------------
long-term debt including current portionexcluding capital lease obligations ( 1 ) | $ 9714.1                     | $ 550.8                            | $ 939.8                                    | $ 2494.3                                   | $ 5729.2
operating lease obligations ( 2 )                                                 | 930.4                        | 214.3                              | 316.4                                      | 193.6                                      | 206.1
capital lease obligations ( 3 )                                                   | 168.9                        | 6.4                                | 8.7                                        | 2.9                                        | 150.9
purchase obligations and other ( 4 ) ( 5 ) ( 6 )                                  | 2293.5                       | 1607.0                             | 292.5                                      | 206.7                                      | 187.3
total                                                                             | $ 13106.9                    | $ 2378.5                           | $ 1557.4                                   | $ 2897.5                                   | $ 6273.5


page 20 of 100 segment sales were $ 100. 7 million lower in 2009 than 2008 primarily result of impact lower aluminum prices offset by increase in sales volumes.
 higher sales volumes 2009 result of incremental volumes from four plants purchased from ab inbev partially offset by plant closures lower sales volumes in existing business.
 segment earnings in 2010 were $ 122. 3 million higher than 2009 due to net $ 85 million impact related higher sales volumes $ 45 million of product mix improved manufacturing performance with higher production.
 2010 improvement effect of $ 7 million out-of-period inventory charge in 2009.
 details of out-of-period adjustment included in note 7 to consolidated financial statements item 8 report.
 segment earnings in 2009 higher than 2008 due to $ 12 million earnings contribution from four acquired plants approximately $ 21 million savings with plant closures.
 partially offsetting favorable impacts were lower carbonated soft drink and beer can sales volumes ( excluding newly acquired plants ) approximately $ 25 million to higher cost inventories in first half of 2009.
 metal beverage packaging , europe.
 details items included in note 5 to consolidated financial statements item 8 report.
 metal beverage packaging , europe segment includes metal beverage packaging products manufactured in europe.
 ball packaging europe has manufacturing plants in germany  united kingdom france netherlands poland serbia second largest metal beverage container business in europe.
 segment sales in 2010 decreased $ 41. 9 million compared to 2009 primarily due to unfavorable foreign exchange effects of $ 93 million price and mix changes partially offset by higher sales volumes.
 segment sales in 2009 compared to 2008 were $ 129. 2 million lower due to $ 110 million of unfavorable foreign exchange effects partially offset by better commercial terms.
sales volumes in 2009 flat compared to prior year.
 segment earnings 2010 decreased $ 1. 9 million compared to 2009  primarily result of $ 28 million increase related to higher sales volumes offset by $ 18 million negative effects from foreign currency translation $ 12 million higher inventory and other costs.
 2009 sales volumes consistent with prior year adverse effects of foreign currency translation europe conversion of euro to u. s.
 dollar reduced segment earnings by $ 8 million.
 contributing to lower segment earnings higher cost inventory carried into 2009 change in sales mix partially offset by better commercial terms in contracts.
 january 18 , 2011  ball acquired aerocan s. a. s.
 ( aerocan )  leading european supplier of aluminum aerosol cans and bottles for 20ac222. 4 million ( approximately $ 300 million ) in cash and assumed debt.
 aerocan manufactures extruded aluminum aerosol cans and bottles aluminum slugs make for customers personal care , pharmaceutical , beverage food industries.
 operates three aerosol can manufacturing plants 2013 one each in czech republic , france united kingdom 2013 51 percent owner of joint venture aluminum slug plant in france.
 four plants employ approximately 560 people.
 acquisition of aerocan allow ball to enter growing part of metal packaging industry broaden company 2019s market development efforts into new customer base.

( $ in millions )                  | 2010         | 2009     | 2008
---------------------------------- | ------------ | -------- | --------
net sales                          | $ 1697.6     | $ 1739.5 | $ 1868.7
segment earnings                   | $ 212.9      | $ 214.8  | $ 230.9
business consolidation costs ( a ) | -3.2 ( 3.2 ) | 2212     | 2212
total segment earnings             | $ 209.7      | $ 214.8  | $ 230.9


52 s&p global 2018 annual report cash consideration received for instances service components sold separately.
 if fair value to customer for each service not objectively determinable we make best estimate of services 2019 stand-alone selling price record revenue as earned over service period.
 receivables record receivable when customer billed or revenue recognized prior to billing customer.
 for multi- year agreements invoice customers annually at beginning of each annual period.
 opening balance of accounts receivable  net of allowance for doubtful accounts was $ 1319 million as of january 1 , 2018.
 contract assets assets include unbilled amounts from company transfers service to customer before customer pays consideration or before payment due.
 as of december 31 , 2018 and 2017  contract assets were $ 26 million and $ 17 million  respectively included in accounts receivable in consolidated balance sheets.
 unearned revenue record unearned revenue when cash payments received or due in advance of performance.
 increase in unearned revenue balance for year ended december 31 , 2018 primarily driven by cash payments received or due in advance of satisfying performance obligations offset by $ 1. 5 billion of revenues recognized included in unearned revenue balance at beginning of period.
 remaining performance obligations represent transaction price of contracts for work not yet performed.
 as of december 31 , 2018 aggregate amount of transaction price allocated to remaining performance obligations was $ 1. 4 billion.
 expect to recognize revenue on approximately half and three-quarters of remaining performance obligations over next 12 and 24 months remainder recognized thereafter.
 do not disclose value of unfulfilled performance obligations for contracts with original expected length of one year or less and ii ) contracts where revenue is usage-based royalty promised in exchange for license of intellectual property.
costs to obtain contract recognize asset for incremental costs of obtaining contract with customer if expect benefit of costs longer than one year.
 determined certain sales commission programs meet requirements to be capitalized.
 total capitalized costs to obtain contract were $ 101 million as of december 31 , 2018  included in prepaid and other current assets and non-current assets on consolidated balance sheets.
 asset amortized over period consistent with transfer to customer of goods or services to asset relates , calculated based on customer term and average life of products and services underlying contracts.
 expense recorded within selling and general expenses.
 expense sales commissions when incurred if amortization period one year or less.
 costs recorded within selling and general expenses.
 presentation of net periodic pension cost and net periodic postretirement benefit cost during first quarter of 2018  adopted new accounting guidance requiring net periodic benefit cost for retirement and postretirement plans other than service cost component be included outside of operating profit ; costs included in other income , net in consolidated statements of income.
components of other income , net for year ended december 31 are as follows : assets and liabilities held for sale and discontinued operations assets liabilities held for sale we classify a disposal group to be sold as held for sale in period all criteria are met : management , authority to approve action , commits to plan to sell disposal group ; disposal group available for immediate sale in present condition subject to terms usual and customary for sales disposal group ; active program to locate buyer and other actions required to complete plan to sell disposal group initiated ; sale of disposal group is probable , transfer of disposal group expected to qualify for recognition as completed sale within one year , except if events or circumstances beyond control extend period of time required to sell disposal group beyond one year ; disposal group actively marketed for sale at price reasonable in relation to current fair value ; actions required to complete plan indicate unlikely significant changes to plan will be made or plan will be withdrawn.
 disposal group classified as held for sale initially measured at lower of its carrying value or fair value less costs to sell.
 any loss resulting from this measurement is recognized in period in held for sale criteria are met.
 gains not recognized on sale of disposal group until date of sale.
 ( in millions ) 2018 2017 2016 other components of net periodic benefit cost $ ( 30 ) $ ( 27 ) $ ( 28 ).

( in millions )                               | 2018         | 2017         | 2016
--------------------------------------------- | ------------ | ------------ | ------------
other components of net periodic benefit cost | $ -30 ( 30 ) | $ -27 ( 27 ) | $ -28 ( 28 )
net loss from investments                     | 5            | 2014         | 2014
other income net                              | $ -25 ( 25 ) | $ -27 ( 27 ) | $ -28 ( 28 )


bhge 2018 form 10-k | 39 outstanding under commercial paper program.
 maximum combined borrowing under 2017 credit agreement and commercial paper program is $ 3 billion.
 if market conditions change revenue reduced or operating costs increase cash flows and liquidity could be reduced.
 it could cause rating agencies to lower our credit rating.
 no ratings triggers accelerate maturity of borrowings under committed credit facility.
 downgrade in credit ratings could increase cost of borrowings under credit facility could limit or preclude ability to issue commercial paper.
 occur we could seek alternative sources of funding including borrowing under credit facility.
 during year ended december 31 , 2018 used cash to fund variety of activities including working capital needs restructuring costs capital expenditures  repayment of debt payment of dividends distributions ge share repurchases.
 believe cash on hand , cash flows from operations and available credit facility will provide sufficient liquidity to manage global cash needs.
 cash flows cash flows provided by ( used in ) each type of activity were as follows for years ended december 31:.
 operating activities largest source of operating cash is payments from customers largest component is collecting cash related to product or services sales including advance payments or progress collections for work performed.
 primary use of operating cash is to pay suppliers , employees  tax authorities others for wide range of material and services.
 cash flows from operating activities generated cash of $ 1762 million and used cash of $ 799 million for years ended december 31 , 2018 and 2017  respectively.
 cash flows from operating activities increased $ 2561 million in 2018 driven by better operating performance.
 cash inflows supported by strong working capital cash flows especially in fourth quarter of 2018 including approximately $ 300 million for progress collection payment from customer.
cash flows from operating activities for 2018 and 2017 are payments of $ 473 million and $ 612 million primarily for employee severance restructuring activities merger related costs.
 cash flows from operating activities used $ 799 million generated $ 262 million for years ended december 31 , 2017 and 2016 .
 cash flows from operating activities decreased $ 1061 million in 2017 driven by $ 1201 million negative impact from ending receivables monetization program fourth quarter restructuring related payments year.
 cash outflows partially offset by strong working capital cash flows  especially in fourth quarter of 2017.
 cash flows from operating activities for 2017 and 2016 are payments of $ 612 million and $ 177 million for employee severance restructuring activities merger related costs.
 investing activities cash flows from investing activities used cash of $ 578 million , $ 4123 million $ 472 million for years ended december 31 , 2018 , 2017 2016 .
 principal recurring investing activity is funding of capital expenditures to ensure appropriate levels types of machinery and equipment to generate revenue from operations.
 expenditures for capital assets totaled $ 995 million , $ 665 million and $ 424 million for 2018 , 2017 and 2016  partially offset by cash flows from sale of property , plant and equipment of $ 458 million , $ 172 million and $ 20 million in 2018  2017 2016 .
 proceeds from disposal of assets related primarily

( in millions )      | 2018           | 2017           | 2016
-------------------- | -------------- | -------------- | ------------
operating activities | $ 1762         | $ -799 ( 799 ) | $ 262
investing activities | -578 ( 578 )   | -4123 ( 4123 ) | -472 ( 472 )
financing activities | -4363 ( 4363 ) | 10919          | -102 ( 102 )


notes to consolidated financial statements 2014 continued ) connection with discover related purchases sold contractual rights to future commissions on discover transactions certain isos.
 contractual rights sold totaled $ 7. 6 million during year ended may 31, 2008 and $ 1. 0 million during fiscal 2009.
 sale proceeds collected in installments over periods three to nine months.
 during fiscal 2009  collected $ 4. 4 million proceeds included in proceeds from sale of investment and contractual rights in consolidated statement of cash flows.
 not recognize gains on sales of contractual rights at time of sale.
 proceeds deferred recognized as reduction of related commission expense.
 during fiscal 2009 recognized $ 1. 2 million of deferred sales proceeds as other long-term liabilities.
 other 2008 acquisitions during fiscal 2008  acquired majority of assets of euroenvios money transfer , s.
 and euroenvios conecta , s. refer to as lfs spain.
 lfs spain two privately- held corporations in money transmittal and ancillary services from spain to settlement locations primarily in latin america.
 purpose of acquisition was to further strategy of expanding customer base and market share by opening additional branch locations.
 during fiscal 2008  acquired series of money transfer branch locations in united states.
 purpose acquisitions to increase market presence of dolex-branded money transfer offering.
 following table summarizes preliminary purchase price allocations of fiscal 2008 business acquisitions ( in thousands ) :.
 customer-related intangible assets have amortization periods of up to 14 years.
 contract-based intangible assets have amortization periods of 3 to 10 years.
 business acquisitions not significant to consolidated financial statements not provided pro forma information relating to acquisitions.
during fiscal 2008 , acquired customer list long-term merchant referral agreement in our canadian merchant services channel for $ 1. 7 million.
 value assigned to customer list of $ 0. 1 million expensed immediately.
 remaining value assigned to merchant referral agreement amortized straight-line basis over useful life of 10 years.
 fiscal 2007 on july 24 , 2006  completed purchase of fifty-six percent ownership interest in asia-pacific merchant acquiring business of hongkong and shanghai banking corporation limited  hsbc asia pacific.
 business provides card payment processing services to merchants in asia-pacific region.

| total
---------------------------------------------------------------- | --------------
goodwill                                                         | $ 13536
customer-related intangible assets                               | 4091
contract-based intangible assets                                 | 1031
property and equipment                                           | 267
other current assets                                             | 502
total assets acquired                                            | 19427
current liabilities                                              | -2347 ( 2347 )
minority interest in equity of subsidiary ( at historical cost ) | -486 ( 486 )
net assets acquired                                              | $ 16594


compared to earlier levels.
 pre-tax non-cash impairments of certain mineral rights real estate discussed under caption fffdland and development impairments fffd not included in segment income.
 liquidity and capital resources on january 29 , 2018  announced definitive agreement signed for to acquire all outstanding shares of kapstone for $ 35. 00 per share assumption of approximately $ 1. 36 billion in net debt for total enterprise value of approximately $ 4. 9 billion.
 transaction march 6 , 2018  issued $ 600. 0 million aggregate principal amount of 3. 75% ( 3. 75 % ) senior notes due 2025 and $ 600. 0 million aggregate principal amount of 4. 0% ( 4. 0 % ) senior notes due 2028 in unregistered offering pursuant to rule 144a regulation s under securities act of 1933  as amended ( fffdsecurities act fffd ).
 on march 7 , 2018  entered into delayed draw credit facilities ( defined ) provide for $ 3. 8 billion of senior unsecured term loans.
 november 2, 2018  connection with closing of kapstone acquisition  drew upon facility in full.
 proceeds of delayed draw credit facilities ) and other sources of cash used to pay consideration for kapstone acquisition  repay existing indebtedness of kapstone pay fees expenses incurred connection with kapstone acquisition.
 fund working capital requirements , capital expenditures , mergers , acquisitions investments  restructuring activities  dividends stock repurchases from net cash provided by operating activities  borrowings under credit facilities  proceeds from new a/r sales agreement proceeds from sale of property , plant and equipment removed from service proceeds received in connection with issuance of debt and equity securities.
 see fffdnote 13.
debt fffdtt of notes to consolidated financial statements for additional information.
 funding for domestic operations future expected from sources liquidity within domestic operations including cash cash equivalents available borrowings under credit facilities.
 foreign cash and cash equivalents not expected key source of liquidity to domestic operations.
 at september 30 , 2018  excluding delayed draw credit facilities had approximately $ 3. 2 billion availability under committed credit facilities primarily under revolving credit facility majority matures on july 1 , 2022.
 liquidity may be used for ongoing working capital needs other general corporate purposes including acquisitions  dividends stock repurchases.
 restrictive covenants govern maximum availability under credit facilities.
 we test report compliance with covenants required in compliance with all covenants at september 30 , 2018.
 september 30 had $ 104. 9 million of outstanding letters of credit not drawn cash and cash equivalents were $ 636. 8 million at september 30 , 2018 and $ 298. 1 million at september 30 , 2017.
 used significant portion of cash and cash equivalents on hand at september 30 , 2018 in connection with closing of kapstone acquisition.
 approximately 20% ( 20 % ) of cash cash equivalents at september 30  2018 held outside of u.
 at september 30 , 2018 total debt was $ 6415. 2 million , $ 740. 7 million of was current.
 at september 30 , 2017 total debt was $ 6554. 8 million , $ 608. 7 million of was current.
 cash flow activityy.
 net cash provided by operating activities during fiscal 2018 increased $ 520. 4 million from fiscal 2017 due to higher cash earnings lower cash taxes impact tax act.
 net cash provided operating activities during fiscal 2017 increased $ 212. 1 million from fiscal 2016 primarily due to $ 111.6 million net increase cash flow from working capital changes plus higher after-tax cash proceeds land development segment accelerated monetization.
 changes in working capital fiscal 2018  2017 2016 included

( in millions )                           | year ended september 30 , 2018 | year ended september 30 , 2017 | year ended september 30 , 2016
----------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
net cash provided by operating activities | $ 2420.9                       | $ 1900.5                       | $ 1688.4
net cash used for investing activities    | $ -1298.9 ( 1298.9 )           | $ -1285.8 ( 1285.8 )           | $ -1351.4 ( 1351.4 )
net cash used for financing activities    | $ -755.1 ( 755.1 )             | $ -655.4 ( 655.4 )             | $ -231.0 ( 231.0 )


contractual cash flows summary of contractual payment obligations related to consolidated debt contingent consideration  operating leases other commitments long-term liabilities at september 30 , 2011 ( see notes 9 and 13 to consolidated financial statements annual report ) ( in thousands ) :.
 ( 1 ) cash premiums related to 201cif converted 201d value of 2007 convertible notes exceed aggregate principal balance using closing stock price of $ 17. 96 on september 30 , 2011.
 actual amount of cash premium calculated based on 20 day average stock price prior to maturity.
 $ 1. 00 change in stock price would change 201cif converted 201d value of cash premium of total aggregate principle amount of remaining convertible notes by approximately $ 2. 8 million.
 ( 2 ) other commitments consist of contractual license and royalty payments  other purchase obligations.
 3 ) contingent consideration related to business combinations recorded at fair value actual results could differ.
 4 ) other long-term liabilities includes gross unrecognized tax benefits executive deferred compensation classified as beyond five years due to uncertain nature of commitment.
 ( 5 ) amounts do not include potential cash payments for pending acquisition of aati.
 critical accounting estimates discussion analysis of financial condition results of operations based upon consolidated financial statements prepared in accordance with gaap.
 preparation financial statements requires to make estimates judgments affect reported amounts of assets , liabilities  revenues expenses  related disclosure of contingent assets liabilities.
 sec defined critical accounting policies as most important to portrayal of financial condition and results require most difficult , complex or subjective judgments or estimates.
based on definition , we believe our critical accounting policies include policies revenue recognition , allowance for doubtful accounts , inventory valuation  business combinations  valuation of long-lived assets  share-based compensation  income taxes  goodwill and intangibles  loss contingencies.
 ongoing basis  we evaluate judgments and estimates underlying all our accounting policies.
 these estimates underlying assumptions affect assets and liabilities reported , disclosures reported amounts revenues and expenses.
 estimates assumptions based on our best judgments.
 we evaluate estimates assumptions using historical experience other factors including current economic environment , believe to reasonable under circumstances.
 adjust estimates assumptions when facts and circumstances dictate.
 future events effects cannot be determined with precision  actual results could differ significantly from estimates.
 page 80 skyworks / annual report 2011

obligation                                               | payments due by period total | payments due by period less than 1year | payments due by period 1-3 years | payments due by period 3-5 years | payments due by period thereafter
-------------------------------------------------------- | ---------------------------- | -------------------------------------- | -------------------------------- | -------------------------------- | ---------------------------------
short-term debt obligations                              | $ 26677                      | $ 26677                                | $ 2014                           | $ 2014                           | $ 2014
cash premium on convertible notes due march 2012 ( 1 )   | 23558                        | 23558                                  | 2014                             | 2014                             | 2014
other commitments ( 2 )                                  | 5170                         | 3398                                   | 1772                             | 2014                             | 2014
operating lease obligations                              | 37788                        | 8247                                   | 13819                            | 9780                             | 5942
contingent consideration for business combinations ( 3 ) | 59400                        | 58400                                  | 1000                             | 2014                             | 2014
other long-term liabilities ( 4 )                        | 34199                        | 2683                                   | 769                              | 146                              | 30601
total ( 5 )                                              | $ 186792                     | $ 122963                               | $ 17360                          | $ 9926                           | $ 36543


table of contents adobe inc.
 notes to consolidated financial statements continued ) table below represents preliminary purchase price allocation to acquired net tangible and intangible assets of marketo based on estimated fair values as of acquisition date and associated estimated useful lives at date.
 fair values assigned to assets acquired liabilities assumed based on management 2019s best estimates assumptions as of reporting date considered preliminary pending finalization of valuation analyses to intangible assets acquired deferred revenue tax liabilities assumed including calculation of deferred tax assets liabilities.
 ( in thousands ) amount weighted average useful life ( years ).
 non-deductible for tax-purposes.
 identifiable intangible assets 2014customer relationships consist of marketo 2019s contractual relationships customer loyalty related to enterprise commercial customers technology partner relationships.
 estimated fair value of customer contracts relationships determined based on projected cash flows attributable to asset.
 purchased technology acquired of marketo 2019s cloud-based engagement marketing software platform.
 estimated fair value of purchased technology determined based on expected future cost savings from ownership asset.
 backlog relates to subscription contracts professional services.
 non-compete agreements include agreements with key marketo employees preclude them from competing against marketo for two years from acquisition date.
 trademarks include marketo trade name known in marketing ecosystem.
 amortize fair value of intangible assets on straight-line basis over respective estimated useful lives.
 goodwill 2014approximately $ 3. 46 billion allocated to goodwill  allocated in full to digital experience reportable segment.
 goodwill represents excess of purchase price over fair value of underlying acquired net tangible and intangible assets.
factors contributed to recognition of goodwill included securing buyer-specific synergies increase revenue profits not otherwise available to marketplace participant  acquiring talented workforce cost savings opportunities.
 net liabilities assumed 2014marketo 2019s tangible assets liabilities as of october 31 , 2018 reviewed adjusted to fair value as necessary.
 net liabilities assumed included $ 100. 1 million in accrued expenses , $ 74. 8 million in deferred revenue $ 182. 6 million in deferred tax liabilities partially offset by $ 54. 9 million in cash cash equivalents $ 72. 4 million in trade receivables acquired.
 deferred revenue 2014included in net liabilities assumed is marketo 2019s deferred revenue represents advance payments from customers related to subscription contracts professional services.
 estimated obligation related to deferred revenue using cost build-up approach.
 cost build-up approach determines fair value by estimating direct and indirect costs related to supporting obligation plus assumed operating margin.
 sum of costs assumed operating profit approximates  amount marketo would required to pay third party to assume obligation.
 estimated costs to fulfill obligation based on near-term projected cost structure for subscription professional services.
 recorded adjustment to reduce marketo 2019s carrying value of deferred revenue to $ 74. 8 million  represents our estimate of fair value of contractual obligations assumed based on preliminary valuation.

( in thousands )                     | amount             | weighted average useful life ( years )
------------------------------------ | ------------------ | --------------------------------------
customer contracts and relationships | $ 576900           | 11
purchased technology                 | 444500             | 7
backlog                              | 105800             | 2
non-competition agreements           | 12100              | 2
trademarks                           | 328500             | 9
total identifiable intangible assets | 1467800            |
net liabilities assumed              | -191288 ( 191288 ) | n/a
goodwill ( 1 )                       | 3459751            | n/a
total estimated purchase price       | $ 4736263          |


operating expenses millions 2010 2009 2008 % ( % ) change 2010 v 2009 2008.
 operating expenses increased $ 1. 2 billion in 2010 versus 2009.
 fuel price per gallon increased 31% ( 31 % ) year accounting for $ 566 million of increase.
 wage and benefit inflation  depreciation  volume-related costs  property taxes contributed to higher expenses 2010 2009.
 cost savings from productivity improvements better resource utilization offset increases.
 operating expenses decreased $ 3. 1 billion in 2009 versus 2008.
 fuel price per gallon declined 44% ( 44 % ) during 2009 decreasing operating expenses by $ 1. 3 billion compared to 2008.
 cost savings from lower volume productivity improvements better resource utilization decreased operating expenses in 2009.
 lower casualty expense from improving trends safety performance decreased operating expenses 2009.
 wage and benefit inflation offset reductions.
 compensation and benefits 2013 compensation benefits include wages payroll taxes health and welfare costs pension costs postretirement benefits incentive costs.
 general wage benefit inflation increased costs by approximately $ 190 million in 2010 compared to 2009.
 volume- related expenses higher equity incentive compensation drove costs up.
 workforce levels declined 1% ( 1 % ) in 2010 compared to 2009 network efficiencies productivity initiatives 13% ( 13 % ) increase in volume levels with fewer employees.
 lower volume productivity initiatives led to 10% ( 10 % ) decline in workforce in 2009 compared to 2008 saving $ 516 million year.
 general wage benefit inflation increased expenses partially offsetting savings.
 fuel 2013 fuel includes locomotive fuel gasoline for highway non-highway vehicles heavy equipment.
 higher diesel fuel prices averaged $ 2.29 per gallon including taxes transportation costs ) in 2010 compared to $ 1. 75 per gallon 2009 increased expenses $ 566 million.
 volume  measured by gross ton-miles increased 10% ( 10 % ) in 2010 versus 2009 driving fuel expense up $ 166 million.
 use of newer fuel efficient locomotives fuel conservation programs efficient network operations drove 3% ( 3 % ) improvement fuel consumption rate in 2010 resulting in $ 40 million cost savings versus 2009 2009 average fuel price.
 lower diesel fuel prices averaged $ 1. 75 per gallon including taxes transportation costs in 2009 compared to $ 3. 15 per gallon in 2008 reduced expenses $ 1. 3 billion in 2009.
 volume  measured by gross ton-miles decreased 17% ( 17 % ) in 2009 lowering expenses $ 664 million compared to 2008.
 fuel consumption rate improved 4% ( 4 % ) in 2009  $ 147 million cost savings versus 2008 2008 average fuel price.
 consumption rate savings versus 2008 lower 2009 fuel price $ 68 million.
 newer fuel efficient locomotives  reflecting locomotive acquisitions recent years impact smaller fleet due to storage of older locomotives increased use of 2010 operating expenses

millions                         | 2010    | 2009    | 2008    | % (  % ) change 2010 v 2009 | % (  % ) change2009 v 2008
-------------------------------- | ------- | ------- | ------- | --------------------------- | --------------------------
compensation and benefits        | $ 4314  | $ 4063  | $ 4457  | 6% ( 6 % )                  | ( 9 ) % (  % )
fuel                             | 2486    | 1763    | 3983    | 41                          | -56 ( 56 )
purchased services and materials | 1836    | 1644    | 1928    | 12                          | -15 ( 15 )
depreciation                     | 1487    | 1427    | 1366    | 4                           | 4
equipment and other rents        | 1142    | 1180    | 1326    | -3 ( 3 )                    | -11 ( 11 )
other                            | 719     | 687     | 840     | 5                           | -18 ( 18 )
total                            | $ 11984 | $ 10764 | $ 13900 | 11% ( 11 % )                | ( 23 ) % (  % )


items on consolidated financial statements adjusted from amounts in earnings release , including reduction of full year 2016 gross profit and income from operations by $ 2. 9 million , reduction of net income by $ 1. 7 million.
 ( 1 ) working capital defined as current assets minus current liabilities.

( in thousands )                        | at december 31 , 2016 | at december 31 , 2015 | at december 31 , 2014 | at december 31 , 2013 | at december 31 , 2012
--------------------------------------- | --------------------- | --------------------- | --------------------- | --------------------- | ---------------------
cash and cash equivalents               | $ 250470              | $ 129852              | $ 593175              | $ 347489              | $ 341841
working capital ( 1 )                   | 1279337               | 1019953               | 1127772               | 702181                | 651370
inventories                             | 917491                | 783031                | 536714                | 469006                | 319286
total assets                            | 3644331               | 2865970               | 2092428               | 1576369               | 1155052
total debt including current maturities | 817388                | 666070                | 281546                | 151551                | 59858
total stockholders 2019 equity          | $ 2030900             | $ 1668222             | $ 1350300             | $ 1053354             | $ 816922


hologic , inc.
 notes to consolidated financial statements continued ) in thousands except per share data ) fiscal 2007 acquisition : acquisition of biolucent , inc.
 on september 18 , 2007 company completed acquisition of biolucent , inc.
 ( 201cbiolucent 201d ) definitive agreement dated june 20 , 2007.
 results of operations for biolucent included in company 2019s consolidated financial statements from date acquisition part of mammography/breast care business segment.
 company concluded acquisition of biolucent not represent material business combination no pro forma financial information provided.
 biolucent  located in aliso viejo , california develops markets sells mammopad breast cushions to decrease discomfort with mammography.
 prior to acquisition biolucent 2019s primary research development efforts directed at brachytherapy business focused on breast cancer therapy.
 prior acquisition biolucent spun-off brachytherapy technology business to holders of biolucent 2019s outstanding shares of capital stock.
 company only acquired biolucent 2019s mammopad cushion business related assets.
 company invested $ 1000 in spun-off brachytherapy business in exchange for shares of preferred stock issued by new business.
 aggregate purchase price for biolucent was approximately $ 73200 approximately $ 6800 in cash 2314 shares of hologic common stock valued at approximately $ 63200 , debt assumed paid off of approximately $ 1600 $ 1600 for acquisition related fees and expenses.
 company determined fair value of shares issued in connection with acquisition accordance with eitf issue no.
 99-12 , determination of measurement date for market price of acquirer securities issued in purchase business combination.
acquisition provides for up to two annual earn-out payments not to exceed $ 15000 aggregate based on biolucent 2019s achievement of certain revenue targets.
 company considered provision of eitf issue no.
 95-8 , accounting for contingent consideration paid to shareholders of acquired enterprise in purchase business combination concluded this contingent consideration will represent additional purchase price.
 goodwill will increased by amount of additional consideration  if any when it becomes due and payable.
 as of september 27 , 2008  company not recorded amounts for these potential earn-outs.
 allocation of purchase price based upon estimates of fair value of assets acquired and liabilities assumed as of september 18 , 2007.
 components and allocation of purchase price consists of following approximate amounts:.
 of purchase price allocation all intangible assets part of acquisition were identified and valued.
 determined only customer relationship , trade name developed technology and know-how had separately identifiable values.
 fair value of these intangible assets determined through application of income approach.
 customer relationship represents large customer base expected to purchase disposable mammopad product on regular basis.
 trade name represents the

net tangible assets acquired as of september 18 2007 | $ 2800
---------------------------------------------------- | --------------
developed technology and know how                    | 12300
customer relationship                                | 17000
trade name                                           | 2800
deferred income tax liabilities net                  | -9500 ( 9500 )
goodwill                                             | 47800
final purchase price                                 | $ 73200


performance graph graph compares yearly change in cumulative total stockholder return for last five full fiscal years  based upon market price of our common stock , with cumulative total return on nasdaq composite index (. s.
 companies ) and peer group , nasdaq medical equipment-sic code 3840-3849 index , of medical equipment companies for period.
 performance graph assumes investment of $ 100 on march 31 , 2010 in our common stock , nasdaq composite index (.
 companies ) peer group index , and reinvestment of any all dividends.
 graph not 201csoliciting material 201d under regulation 14a or 14c of rules under securities exchange act of 1934  not deemed filed with securities and exchange commission not to be incorporated by reference in filings under securities act of 1933 , as amended , or exchange act made before or after date hereof irrespective of general incorporation language in filing.
 transfer agent american stock transfer & trust company , 59 maiden lane , new york , ny 10038  is our stock transfer agent.

| 3/31/2010 | 3/31/2011 | 3/31/2012 | 3/31/2013 | 3/31/2014 | 3/31/2015
------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
abiomed inc                                 | 100       | 140.79    | 215.02    | 180.91    | 252.33    | 693.60
nasdaq composite index                      | 100       | 115.98    | 128.93    | 136.26    | 175.11    | 204.38
nasdaq medical equipment sic code 3840-3849 | 100       | 108.31    | 115.05    | 105.56    | 123.18    | 118.95


valuation allowance as of 30 september 2016 of $ 155. 2 related to tax benefit on federal capital loss carryforward of $ 48. 0 , tax benefit of foreign loss carryforwards of $ 37. 7 , capital assets of $ 58. 0 generated from loss recorded on exit from energy-from-waste business in 2016.
 if events warrant reversal of valuation allowance result in reduction of tax expense.
 likely not future earnings and reversal of deferred tax liabilities sufficient to utilize deferred tax assets  net of existing valuation allowance at 30 september 2016.
 deferred tax liability associated with unremitted earnings of foreign entities decreased due to dividend to repatriate cash from foreign subsidiary in south korea.
 amount impacted by ongoing activity including earnings , dividend payments tax credit adjustments  currency translation impacting undistributed earnings of foreign subsidiaries and corporate joint ventures not considered indefinitely reinvested outside of u. s.
 record u.
 income taxes on undistributed earnings of foreign subsidiaries and corporate joint ventures unless earnings indefinitely reinvested outside u. s.
 cumulative undistributed earnings considered indefinitely reinvested in foreign subsidiaries corporate joint ventures included in retained earnings on consolidated balance sheets amounted to $ 6300. 9 as of 30 september 2016.
 estimated $ 1467. 8.
 income and foreign withholding taxes due if earnings remitted as dividends after payment of all deferred taxes.
 reconciliation of beginning and ending amount of unrecognized tax benefits:.
 at 30 september 2016 and 2015  had $ 106. 9 and $ 97. 5 of unrecognized tax benefits , excluding interest and penalties , of which $ 64. 5 and $ 62.5 , impact effective tax rate if recognized.
 interest penalties related to unrecognized tax benefits recorded component of income tax expense totaled $ 2. 3 in 2016  $ ( 1. 8 ) in 2015  $ 1. 2 in 2014.
 accrued balance for interest penalties was $ 9. 8 $ 7. 5 as of 30 september 2016 2015.

unrecognized tax benefits                       | 2016         | 2015           | 2014
----------------------------------------------- | ------------ | -------------- | --------------
balance at beginning of year                    | $ 97.5       | $ 108.7        | $ 124.3
additions for tax positions of the current year | 15.0         | 6.9            | 8.1
additions for tax positions of prior years      | 3.8          | 7.5            | 4.9
reductions for tax positions of prior years     | -.3 ( .3 )   | -7.9 ( 7.9 )   | -14.6 ( 14.6 )
settlements                                     | -5.6 ( 5.6 ) | -.6 ( .6 )     | 2014
statute of limitations expiration               | -3.0 ( 3.0 ) | -11.2 ( 11.2 ) | -14.0 ( 14.0 )
foreign currency translation                    | -.5 ( .5 )   | -5.9 ( 5.9 )   | 2014
balance at end of year                          | $ 106.9      | $ 97.5         | $ 108.7


31 , 2015  price was r$ 218/mwh.
 after expiration of contract with eletropaulo  tiet ea's strategy is to contract most of physical guarantee  described in regulatory framework section below sell remaining portion in spot market.
 tiet ea's strategy is reassessed according to changes in market conditions , hydrology other factors.
 tiet ea continuously selling available energy from 2016 forward through medium-term bilateral contracts of three to five years.
 as of december 31 , 2016  ea's contracted portfolio position is 95% ( 95 % ) and 88% ( 88 % ) with average prices of r$ 157/ mwh and r$ 159/mwh ( inflation adjusted until december 2016 ) for 2016 and 2017  respectively.
 brazil is mostly hydro-based country with energy prices tied to hydrological situation deterioration of hydrology since 2014 caused increase in energy prices.
 tiet ea closely monitoring and analyzing system supply conditions to support energy commercialization decisions.
 under concession agreement  tiet ea obligation to increase capacity by 15% ( 15 % ).
 tiet ea other concession generators not yet met this requirement due to regulatory , environmental  hydrological fuel constraints.
 state of s e3o paulo not sufficient potential for wind power small remaining potential for hydro projects.
 capacity increases state mostly derived from thermal gas capacity projects.
 due to complex process to obtain environmental license for coal projects tiet ea decided to fulfill obligation with gas-fired projects in line with federal government plans.
 petrobras refuses to supply natural gas offer capacity in pipelines and regasification terminals.
 no regulations for natural gas swaps in place unfeasible to bring natural gas to aes tiet ea.
legal case initiated by state of s e3o paulo requiring investment performed.
 tiet ea in process analyzing options to meet obligation.
 uruguaiana is a 640 mw gas-fired combined cycle power plant in town of uruguaiana state of rio grande do sul commissioned in december 2000.
 aes manages has 46% ( 46 % ) economic interest in plant remaining interest held by bndes.
 plant's operations suspended in april 2009 due to unavailability of gas.
 aes evaluated alternatives to bring gas supply competitive to uruguaiana.
 challenges is capacity restrictions on argentinean pipeline especially during winter season when gas demand in argentina high.
 plant operated short-term basis during february and march 2013  march through may 2014 february through may 2015 due to short-term supply lng for.
 plant did not operate in 2016.
 uruguaiana continues to work toward securing gas long-term basis.
 market structure 2014 brazil has installed capacity of 150136 mw  65% ( 65 % ) hydroelectric , 19% ( 19 % ) thermal 16% ( 16 % ) renewable ( biomass and wind ).
 brazil's national grid divided into four subsystems.
 tiet ea in southeast uruguaiana in south subsystems national grid.
 regulatory framework 2014 in brazil ministry of mines and energy determines maximum amount of energy plant can sell  called physical guarantee  represents long-term average expected energy production of plant.
 under current rules physical guarantee can be sold to distribution companies through long- term regulated auctions or under unregulated bilateral contracts with large consumers or energy trading companies.
 national system operator ( ) responsible for coordinating and controlling operation of national grid.
ons dispatches generators based on hydrological conditions reservoir levels electricity demand prices of fuel and thermal generation.
 given importance of hydro generation in country ons sometimes reduces dispatch of hydro facilities increases dispatch of thermal facilities to protect reservoir levels in system.
 in brazil  system operator controls all hydroelectric generation dispatch and reservoir levels.
 mechanism as energy reallocation mechanism ( "mre" ) created to share hydrological risk across mre hydro generators.
 if hydro plants generate less than total mre physical guarantee hydro generators may need to purchase energy in short-term market to fulfill contract obligations.
 when total hydro generation is higher than total mre physical guarantee surplus proportionally shared among participants they able to make extra revenue selling excess energy on spot market.
 consequences of unfavorable hydrology are i thermal plants more expensive ii lower hydropower generation with deficits in mre iii high spot prices.
 aneel defines spot price cap for electricity in brazilian market.
 spot price caps as defined by aneel average spot prices by calendar year are as follows ( r$ /.

year                               | 2017 | 2016 | 2015 | 2014
---------------------------------- | ---- | ---- | ---- | ----
spot price cap as defined by aneel | 534  | 423  | 388  | 822
average spot rate                  |      | 94   | 287  | 689


positions and collateral of defaulting firm at each respective clearing organization  taking account cross-margining loss sharing payments , participating clearing organizations has remaining liquidating surplus , and any other participating clearing organization has remaining liquidating deficit , additional surplus from liquidation shared with other clearing house to extent remaining liquidating deficit.
 remaining surplus funds passed to bankruptcy trustee.
 mf global bankruptcy trust.
 company provided a $ 550. 0 million financial guarantee to bankruptcy trustee of mf global to accelerate distribution of funds to mf global customers.
 in trustee distributed more property in second or third interim distributions than permitted by bankruptcy code and cftc regulations , company will make cash payment to trustee for amount erroneous distribution or distributions up to $ 550. 0 million in aggregate.
 payment only made after trustee makes reasonable efforts to collect property erroneously distributed to customer ( s ).
 if payment is made by company company may have right to seek reimbursement of erroneously distributed property from applicable customer ( s ).
 guarantee does not cover distributions made by trustee to customers on basis of claims filed in bankruptcy.
 trustee has now made payments to nearly all customers on basis of claims  company believes likelihood of payment to trustee is very remote.
 guarantee liability estimated to be immaterial at december 31 , 2012.
 family farmer and rancher protection fund.
 in april 2012  company established family farmer and rancher protection fund ( fund ).
 fund designed to provide payments  up to certain maximum levels to family farmers , ranchers and other agricultural industry participants who use cme group agricultural products and who suffer losses to segregated account balances due to cme clearing member becoming insolvent.
under terms of fund  farmers ranchers eligible for up to $ 25000 per participant.
 farming ranching cooperatives eligible for up to $ 100000 per cooperative.
 fund has aggregate maximum payment amount of $ 100. 0 million.
 if payments participants exceed this amount, payments be pro-rated.
 clearing members customers must register in advance with company provide documentation to substantiate eligibility.
 peregrine financial group , inc.
 ( pfg ) filed for bankruptcy protection on july 10, 2012.
 pfg not of cme 2019s clearing members customers not registered for fund.
 not technically eligible for payments from fund.
 fund newly implemented pfg 2019s customers included many agricultural industry participants for program designed  company decided to waive certain terms and conditions of fund solely in connection with pfg bankruptcy eligible family farmers ranchers agricultural cooperatives could apply for receive benefits from cme.
 based on number of pfg customers applied estimated size of claims company recorded liability in amount of $ 2. 1 million at december 31 , 2012.
 16.
 redeemable non-controlling interest following summarizes changes in redeemable non-controlling interest for years presented.
 non- controlling interests not contain redemption features presented in statements of equity.
 contribution by dow jones.
.
.
.
.
.
.
.
.
.
.
 2014 2014 675. 0 distribution to dow jones.
.
.
.
.
.
.
.
.
.
.
 2014 2014 ( 607. 5 ) allocation of stock- compensation.
.
.
.
 2014 0. 1 2014 total comprehensive income attributable to redeemable non- controlling interest.
.
.
.
.
.
.
.
.
.
 10. 5 2. 6 december 31.
.
.
.
.
.
.
.
.
 80. 8 $ 70. 3 68. 1

( in millions )                                                                | 2012   | 2011   | 2010
------------------------------------------------------------------------------ | ------ | ------ | ----------------
balance at january 1                                                           | $ 70.3 | $ 68.1 | $ 2014
contribution by dow jones                                                      | 2014   | 2014   | 675.0
distribution to dow jones                                                      | 2014   | 2014   | -607.5 ( 607.5 )
allocation of stock-based compensation                                         | 2014   | 0.1    | 2014
total comprehensive income attributable to redeemable non-controlling interest | 10.5   | 2.1    | 0.6
balance at december 31                                                         | $ 80.8 | $ 70.3 | $ 68.1


mastercard incorporated notes to consolidated financial statements 2014 ( continued ) ( in thousands, except percent and per share data ) table summarizes expected benefit payments through 2019 for pension plans including payments expected paid from company 2019s general assets.
 majority of benefit payments made in form lump-sum distributions actual benefit payments may differ from expected benefit payments.
 all company 2019s.
 employees eligible to participate in defined contribution savings plan ( 201csavings plan 201d ) sponsored by company.
 savings plan allows employees to contribute portion of base compensation on pre-tax and after-tax basis in accordance with specified guidelines.
 company matches percentage of employees 2019 contributions up to certain limits.
 in 2007 and prior years company could contribute to savings plan discretionary profit sharing component linked to company performance during prior year.
 beginning in 2008  discretionary profit sharing amount related to prior year company performance paid directly to employees as short-term cash incentive bonus than contribution to savings plan.
 company has several defined contribution plans outside of united states.
 company 2019s contribution expense related to all defined contribution plans was $ 40627 , $ 35341 and $ 26996 for 2009 , 2008 2007  respectively.
 note 13.
 postemployment and postretirement benefits company maintains postretirement plan ( 201cpostretirement plan 201d ) providing health coverage and life insurance benefits for all.
 employees hired before july 1 , 2007.
 company amended life insurance benefits under postretirement plan effective january 1 , 2007.
 impact net of taxes of amendment was increase of $ 1715 to accumulated other comprehensive income in 2007.
 in 2009 company recorded $ 3944 benefit expense result of enhanced postretirement medical benefits under postretirement plan provided to employees participate in voluntary transition program.

2010      | $ 18181
--------- | -------
2011      | 27090
2012      | 21548
2013      | 25513
2014      | 24002
2015-2019 | 128494


notes to consolidated financial statements 2014 continued ) merchant acquiring business in united kingdom to partnership.
 hsbc uk entered ten-year marketing alliance with partnership hsbc uk will refer customers to partnership for payment processing services in united kingdom.
 on june 23 , 2008  entered new five year , $ 200 million term loan to fund portion of acquisition.
 funded remaining purchase price with excess cash and existing credit facilities.
 term loan bears interest  election prime rate or london interbank offered rate plus margin based on leverage position.
 as of july 1, 2008  interest rate on term loan was 3. 605% ( 3. 605 % ).
 term loan calls for quarterly principal payments of $ 5 million beginning with quarter ending august 31 , 2008 increasing to $ 10 million beginning quarter ending august 31 , 2010 $ 15 million beginning quarter ending august 31 , 2011.
 partnership agreement includes provisions hsbc uk may compel us to purchase at fair value additional membership units from hsbc uk ( 201cput option 201d ).
 hsbc uk may exercise put option on fifth anniversary of closing acquisition and each anniversary thereafter.
 exercising put option hsbc uk can require us to purchase annual basis up to 15% ( 15 % ) of total membership units.
 additionally on tenth anniversary of closing and each tenth anniversary thereafter hsbc uk may compel us to purchase all membership units at fair value.
 not redeemable until june 2013 estimate maximum total redemption amount of minority interest under put option would be $ 421. 4 million  as of may 31 , 2008.
 purpose of acquisition was to establish presence in united kingdom.
key factors contributed to decision to acquisition include historical prospective financial statement analysis hsbc uk 2019s market share and retail presence in united kingdom.
 purchase price determined by analyzing historical prospective financial statements applying relevant purchase price multiples.
 purchase price totaled $ 441. 1 million , consisting of $ 438. 6 million cash consideration plus $ 2. 5 million of direct out of pocket costs.
 acquisition recorded using purchase method of accounting purchase price allocated to assets acquired and liabilities assumed based on estimated fair values at date of acquisition.
 following table summarizes preliminary purchase price allocation:.
 due to recent timing of transaction allocation of purchase price is preliminary.
 all goodwill associated with acquisition is expected to be deductible for tax purposes.
 customer-related intangible assets have amortization periods of up to 13 years.
 contract-based intangible assets have amortization periods of 7 years.
 trademark has amortization period of 5 years.

| total
---------------------------------------------------------------- | ----------------
goodwill                                                         | $ 294741
customer-related intangible assets                               | 116920
contract-based intangible assets                                 | 13437
trademark                                                        | 2204
property and equipment                                           | 26955
other current assets                                             | 100
total assets acquired                                            | 454357
minority interest in equity of subsidiary ( at historical cost ) | -13257 ( 13257 )
net assets acquired                                              | $ 441100


agreements.
 deferred financing costs to $ 51 million and $ 60 million  net of accumulated amortization as of december 31 , 2007 and 2006 .
 amortization of financing costs totaled $ 13 million , $ 15 million $ 14 million in 2007  2006 2005  included in interest expense on statements of operations.
 amortization of property and equipment under capital leases totaled $ 2 million , $ 2 million $ 3 million in 2007, 2006 2005  included in depreciation and amortization on consolidated state- ments of operations.
 5 stockholders 2019 equity seven hundred fifty million shares of common stock par value of $ 0. 01 per share  authorized 522. 6 million and 521. 1 million outstanding as of december 31 , 2007 and 2006 .
 fifty million shares of no par value preferred stock authorized 4. 0 million shares out- standing as of december 31 , 2007 and 2006.
 dividends required to distribute 90% ( 90 % ) of annual taxable income  excluding net capital gain to qualify as reit.
 policy on common dividends to distribute 100% ( 100 % ) of estimated annual taxable income  including net capital gain unless contractually restricted.
 for preferred dividends  pay quarterly dividend  less of amount taxable income unless contractu- ally restricted.
 amount of dividends determined by host 2019s board of directors.
 all dividends declared in 2007 , 2006 2005 determined to be ordinary income.
 table presents amount of common and preferred dividends declared per share:.
 class e preferred stock 8 7/8% ( 7/8 % ) 2. 22 2. 22 2. 22 common stock on april 10 , 2006  issued approximately 133.5 million com- mon shares for acquisition of hotels from starwood hotels & resorts.
 see note 12  acquisitions-starwood acquisition.
 during 2006  converted convertible subordinated debentures into 24 million shares common stock.
 remainder redeemed for $ 2 million in april 2006.
 see note 4  debt.
 preferred stock one class publicly-traded preferred stock outstanding : 4034400 shares of 8 7/8% ( 7/8 % ) class e preferred stock.
 holders preferred stock entitled to receive cumulative cash dividends at 8 7/8% ( 7/8 % ) per annum of $ 25. 00 per share liqui- dation preference payable quarterly in arrears.
 after june 2, 2009 option to redeem class e preferred stock for $ 25. 00 per share plus accrued and unpaid dividends to date of redemption.
 preferred stock ranks senior to common stock authorized series junior participating preferred stock.
 preferred stockholders have no voting rights.
 accrued preferred dividends at december 31 , 2007 and 2006 approximately $ 2 million.
 during 2006 and 2005  redeemed all outstanding shares of class c and b cumulative preferred stock.
 fair value of preferred stock ( equal to redemption price ) exceeded carrying value of class c and b preferred stock by approximately $ 6 million and $ 4 million .
 amounts represent origi- nal issuance costs.
 original issuance costs for class c and b preferred stock reflected in determination of net income available to common stockholders calculating basic and diluted earnings per share in respective years of redemption.
 stockholders rights plan in 1998  board of directors adopted stockholder rights plan dividend of one preferred stock purchase right distributed for each outstanding share of com- mon stock.
right exercisable entitles holder to buy 1/1000th of a share of series junior participating pre- ferred stock of ours at exercise price of $ 55 per share , subject to adjustment.
 rights exercisable 10 days after person or group acquired beneficial ownership of at least 20% ( 20 % )  or began tender or exchange offer for 20% ( 20 % )  of our com- mon stock.
 shares owned by person or group on november 3 , 1998 and held continuously thereafter exempt for determining beneficial ownership under rights plan.
 rights non-voting expire on november 22 , 2008  unless exercised or previously redeemed by us for $. 005 each.
 if involved in merger or other business combina- tions not approved by board of directors  each right entitles holder  acquiring person or group to purchase common stock of our company or acquiror value of twice exercise price of right.
 stock repurchase plan board of directors authorized program to repur- chase up to $ 500 million of common stock.
 common stock may be purchased in open market or through private trans- actions  dependent upon market conditions.
 plan does not obligate us to repurchase specific number of shares may be suspended at any time at management 2019s discretion.
 6 income taxes elected to be treated as a reit effective january 1 , 1999  pursuant to.
 internal revenue code of 1986  amended.
 corporation that elects reit status and meets tax law requirements regarding distribution of taxable income to stockholders complies with other requirements ( relating to nature of assets and sources of revenues ) not subject to federal and state income taxation on operating income distributed to stockholders.
paying federal state income taxes on retained income we subject to taxes on 201cbuilt-in-gains 201d from sales assets.
 taxable reit subsidiaries subject to federal  state foreign 63h o s t h o t e l s & r e s o r t s 2 0 0 7 60629p21-80x4 4/8/08 4:02 pm page 63

| 2007   | 2006  | 2005
---------------------------------------- | ------ | ----- | -----
common stock                             | $ 1.00 | $ .76 | $ .41
class b preferred stock 10% ( 10 % )     | 2014   | 2014  | .87
class c preferred stock 10% ( 10 % )     | 2014   | .625  | 2.50
class e preferred stock 87/8% ( 87/8 % ) | 2.22   | 2.22  | 2.22


goldman sachs group , inc.
 and subsidiaries management 2019s discussion analysis risk committee board and risk governance committee ( delegated authority firmwide risk committee ) approve market risk limits and sub-limits at firmwide , business and product levels , consistent with our risk appetite statement.
 in  market risk management ( through delegated authority risk governance committee ) sets market risk limits and sub-limits at certain product and desk levels.
 purpose of firmwide limits is to assist senior management in controlling overall risk profile.
 sub-limits are set below approved level of risk limits.
 sub-limits set desired maximum of exposure managed by any particular business day-to-day basis without additional senior management approval , leaving day-to-day decisions to individual desk managers and traders.
 accordingly sub-limits are a management tool to ensure appropriate escalation than establish maximum risk tolerance.
 sub-limits distribute risk among various businesses consistent with level of activity and client demand , taking into account relative performance of each area.
 market risk limits monitored daily by market risk management  responsible for identifying and escalating  timely instances where limits exceeded.
 when risk limit exceeded (. due to positional changes or changes in market conditions  increased volatilities changes in correlations ), escalated to senior managers in market risk management and/or appropriate risk committee.
 such instances remediated by inventory reduction and/or temporary or permanent increase to risk limit.
 model review and validation our var and stress testing models regularly reviewed by market risk management and enhanced in to incorporate changes in composition of positions in market risk measures  variations in market conditions.
 prior to implementing significant changes to assumptions/or models  model risk management performs model validations.
changes to var and stress testing models reviewed with chief risk officer and chief financial officer approved by firmwide risk committee.
 see 201cmodel risk management 201d for further information about review validation of models.
 systems significant investment in technology to monitor market risk including : 2030 independent calculation of var and stress measures ; 2030 risk measures calculated at individual position levels ; 2030 attribution of risk measures to individual risk factors each position ; 2030 ability to report many different views of risk measures (. by desk  business product type entity ) 2030 ability to produce ad hoc analyses timely.
 metrics analyze var at firmwide level more detailed levels including by risk category  business  region.
 tables below present average daily var period-end var  high and low var for period.
 diversification effect in represents difference between total var and sum of vars for four risk categories.
 effect arises because four market risk categories not perfectly correlated.
 table below presents average daily var by risk category.
 average daily var decreased to $ 54 million in 2017 from $ 63 million in 2016  due to reductions across all risk categories partially offset by decrease in diversification effect.
 overall decrease primarily due to lower levels of volatility.
 average daily var decreased to $ 63 million in 2016 from $ 76 million in 2015 due to reductions across all risk categories partially offset by decrease in diversification effect.
 overall decrease primarily due to reduced exposures.
 goldman sachs 2017 form 10-k 91

$ in millions          | year ended december 2017 | year ended december 2016 | year ended december 2015
---------------------- | ------------------------ | ------------------------ | ------------------------
interest rates         | $ 40                     | $ 45                     | $ 47
equity prices          | 24                       | 25                       | 26
currency rates         | 12                       | 21                       | 30
commodity prices       | 13                       | 17                       | 20
diversification effect | -35 ( 35 )               | -45 ( 45 )               | -47 ( 47 )
total                  | $ 54                     | $ 63                     | $ 76


marathon oil corporation notes to consolidated financial statements stock appreciation rights 2013 prior to 2005 granted sars under 2003 plan.
 no stock appreciation rights granted under 2007 plan.
 similar to stock options stock appreciation rights represent right to receive payment equal to excess of fair market value of shares of common stock on date right exercised over grant price.
 under 2003 plan certain sars granted as stock-settled sars others granted in tandem with stock options.
 sars granted under 2003 plan vest over three-year period maximum term of ten years from date granted.
 stock-based performance awards 2013 prior to 2005 granted stock-based performance awards under 2003 plan.
 no stock-based performance awards granted under 2007 plan.
 2005  discontinued granting stock-based performance awards instead now grant cash-settled performance units to officers.
 all stock-based performance awards granted under 2003 plan either vested or forfeited.
 no outstanding stock-based performance awards.
 restricted stock 2013 grant restricted stock restricted stock units under 2007 plan previously granted awards under 2003 plan.
 in 2005  compensation committee began granting time-based restricted stock to certain u. s. -based officers of marathon consolidated subsidiaries part of annual long-term incentive package.
 restricted stock awards to officers vest three years from date of grant contingent on recipient 2019s continued employment.
 also grant restricted stock to certain non-officer employees and restricted stock units to certain international employees ( 201crestricted stock awards 201d ) based on performance within guidelines and for retention purposes.
restricted stock awards to non-officers vest in one-third increments over three-year period contingent on recipient continued employment certain restricted stock awards granted in 2008 vest over four-year period contingent on recipient continued employment.
 prior to vesting all restricted stock recipients have right to vote stock receive dividends.
 non-vested shares not transferable held by transfer agent.
 common stock units 2013 maintain equity compensation program for non-employee directors under 2007 plan and previously under 2003 plan.
 all non-employee directors other than chairman receive annual grants of common stock units required to hold units until leave board of directors.
 when dividends paid on marathon common stock directors receive dividend equivalents in additional common stock units.
 total stock-based compensation expense employee stock-based compensation expense was $ 43 million , $ 66 million and $ 78 million in 2008 , 2007 and 2006.
 total related income tax benefits were $ 16 million  $ 24 million $ 29 million.
 in 2008 2007 cash received upon exercise of stock option awards was $ 9 million and $ 27 million.
 tax benefits realized for deductions during 2008 and 2007 in excess of stock-based compensation expense for options exercised other stock-based awards vested totaled $ 7 million and $ 30 million.
 cash settlements of stock option awards totaled $ 1 million in 2007.
 no cash settlements in 2008.
 stock option awards during 2008 2007 2006 granted stock option awards to both officer and non-officer employees.
 weighted average grant date fair value of awards based on black-scholes assumptions:.

| 2008           | 2007           | 2006
--------------------------------------------------------------------- | -------------- | -------------- | --------------
weighted average exercise price per share                             | $ 51.74        | $ 60.94        | $ 37.84
expected annual dividends per share                                   | $ 0.96         | $ 0.96         | $ 0.80
expected life in years                                                | 4.8            | 5.0            | 5.1
expected volatility                                                   | 30% ( 30 % )   | 27% ( 27 % )   | 28% ( 28 % )
risk-free interest rate                                               | 3.1% ( 3.1 % ) | 4.1% ( 4.1 % ) | 5.0% ( 5.0 % )
weighted average grant date fair value of stock option awards granted | $ 13.03        | $ 17.24        | $ 10.19


issuer purchases of equity securities table provides information about purchases us during three months ended december 31 , 2013 of equity securities registered us to section 12 exchange act : period total number of shares purchased 1 average price paid per share total number of shares purchased as part of publicly announced plans or programs 1 ) 2 ) dollar value of shares purchased under plans or programs 1 ).
 as announced on may 1 , 2013  april 2013  board of directors replaced approved share repurchase authorization of up to $ 1 billion with current authorization for repurchases of up to $ 1 billion of common shares exclusive shares repurchased with employee stock plans expiring june 30 , 2015.
 under current share repurchase authorization  shares may be purchased at prevailing prices in open market , by block purchases  or in privately-negotiated transactions  subject to regulatory restrictions on volume  pricing  timing.
 as of february 1 , 2014  remaining authorized amount under current authorization totaled approximately $ 580 million.
 excludes 0. 1 million shares repurchased in connection with employee stock plans.

period        | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announcedplans or programs ( 1 ) ( 2 ) | dollar value of shares that may yet be purchased under the plans orprograms ( 1 )
------------- | -------------------------------------- | ---------------------------- | ------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------
october 2013  | 0                                      | $ 0                          | 0                                                                                | $ 781118739
november 2013 | 1191867                                | 98.18                        | 1191867                                                                                | 664123417
december 2013 | 802930                                 | 104.10                       | 802930                                                                                | 580555202
total         | 1994797                                | $ 100.56                     | 1994797                                                                                |


26 | 2009 annual report fiscal 2008  revenues credit union systems and services business segment increased 14% ( 14 % ) from fiscal 2007.
 all revenue components segment experienced growth fiscal 2008.
 license revenue generated largest dollar growth revenue episys ae , flagship core processing system at larger credit unions experienced strong sales year.
 support and service revenue  largest component of total revenues credit union segment experienced 34 percent growth in eft support 10 percent growth in in-house support.
 gross profit business segment increased $ 9344 in fiscal 2008 compared to fiscal 2007 due primarily to increase in license revenue carries highest margins.
 liquidity capital resources historically generated positive cash flow from operations used funds from operations short-term borrowings on revolving credit facility to meet capital requirements.
 expect trend to continue future.
 company 2019s cash and cash equivalents increased to $ 118251 at june 30 , 2009 from $ 65565 at june 30 , 2008.
 table summarizes net cash from operating activities statement of cash flows : 2009 2008 2007.
 year ended june 30  cash provided by operations increased $ 25587 to $ 206588 for fiscal year ended june 30 , 2009 compared to $ 181001 fiscal year ended june 30 , 2008.
 increase primarily attributable to decrease in receivables compared to same period a year ago of $ 21214.
 decrease result of fiscal 2010 annual software maintenance billings provided to customers earlier prior year allowed more cash collected before end fiscal year than previous years.
 collected more cash overall related to revenues recognized in subsequent periods current year than fiscal 2008.
 cash used in investing activities for fiscal year ended june 2009 was $ 59227 includes $ 3027 in contingent consideration paid on prior years 2019 acquisitions.
cash used in investing activities for fiscal year ended june 2008 was $ 102148 includes payments for acquisitions of $ 48109 , plus $ 1215 contingent consideration paid on prior years 2019 acquisitions.
 capital expenditures for fiscal 2009 were $ 31562 compared to $ 31105 for fiscal 2008.
 cash used for software development in fiscal 2009 was $ 24684 compared to $ 23736 prior year.
 net cash used in financing activities for current fiscal year was $ 94675 includes repurchase of 3106 shares of common stock for $ 58405, payment of dividends of $ 26903 $ 13489 net repayment on revolving credit facilities.
 cash used financing activities partially offset by proceeds of $ 3773 from exercise of stock options sale of common stock ( through employee stock purchase plan ) $ 348 excess tax benefits from stock option exercises.
 during fiscal 2008 , net cash used in financing activities for fiscal year was $ 101905 includes repurchase of 4200 shares of common stock for $ 100996  payment of dividends of $ 24683 $ 429 net repayment on revolving credit facilities.
 cash used financing activities partially offset by proceeds of $ 20394 from exercise of stock options sale of common stock $ 3809 excess tax benefits from stock option exercises.
 beginning during fiscal 2008  us financial markets largest us financial institutions shaken by negative developments in home mortgage industry mortgage markets  particularly markets for subprime mortgage-backed securities.
 these developments resulted in broad  global economic downturn.
 we  experienced effects of downturn not experienced significant issues with current collection efforts believe future impact to liquidity minimized by cash generated by recurring sources of revenue due to access to available lines of credit.

2008                                   | year ended june 30 2009 2008 | year ended june 30 2009 2008 | year ended june 30 2009
-------------------------------------- | ---------------------------- | ---------------------------- | -----------------------
net income                             | $ 103102                     | $ 104222                     | $ 104681
non-cash expenses                      | 74397                        | 70420                        | 56348
change in receivables                  | 21214                        | -2913 ( 2913 )               | -28853 ( 28853 )
change in deferred revenue             | 21943                        | 5100                         | 24576
change in other assets and liabilities | -14068 ( 14068 )             | 4172                         | 17495
net cash from operating activities     | $ 206588                     | $ 181001                     | $ 174247