commitment expiration per period other commercial commitments after millions total 2012 2013 2014 2015 2016 2016.
 [a] none of credit facility used as of december 31 , 2011.
 [b] $ 100 million of receivables securitization facility utilized at december 31 , 2011 accounted for as debt.
 full program matures in august 2012.
 [c] includes guaranteed obligations related to headquarters building , equipment financings affiliated operations.
 [d] none letters of credit drawn upon as of december 31 , 2011.
 off-balance sheet arrangements guarantees 2013 at december 31 , 2011 contingently liable for $ 325 million in guarantees.
 recorded liability of $ 3 million for fair value of these obligations as of december 31 , 2011 and 2010.
 entered into contingent guarantees in normal course of business include guaranteed obligations related to headquarters building , equipment financings affiliated operations.
 final guarantee expires in 2022.
 not aware of existing event of default require to satisfy these guarantees.
 not expect guarantees material adverse effect on consolidated financial condition , results of operations or liquidity.
 other matters labor agreements 2013 in january 2010  nation 2019s largest freight railroads began current round of negotiations with labor unions.
 contract negotiations with unions over extended period of time.
 this round of negotiations no exception.
 in september 2011  rail industry reached agreements with united transportation union.
 on november 5 , 2011  presidential emergency board ( peb ) appointed by president obama issued recommendations to resolve disputes between.
 railroads and 11 unions not yet reached agreements.
 since then ten unions reached agreements with railroads all generally patterned on recommendations of peb unions ratified these agreements.
railroad industry reached tentative agreement with brotherhood of maintenance of way employees ( bmwe ) on february 2 , 2012 , eliminating immediate threat of national rail strike.
 bmwe now will commence ratification tentative agreement by members.
 inflation 2013 long periods of inflation increase asset replacement costs for capital-intensive companies.
 assuming replace all operating assets at current price levels depreciation charges ( on inflation-adjusted basis ) greater than historically reported amounts.
 derivative financial instruments 2013 we may use derivative financial instruments in limited instances to assist managing exposure to fluctuations in interest rates fuel prices.
 not a party to leveraged derivatives by policy do not use derivative financial instruments for speculative purposes.
 derivative financial instruments qualifying for hedge accounting must maintain specified level of effectiveness between hedging instrument and item being hedged at inception and throughout hedged period.
 document nature and relationships between hedging instruments and hedged items at inception risk-management objectives  strategies for hedge transactions method of assessing hedge effectiveness.
 changes in fair market value of derivative financial instruments not qualify for hedge accounting are charged to earnings.
 may use swaps , collars  futures forward contracts to mitigate risk of adverse movements in interest rates fuel prices ; use of these derivative financial instruments may limit future benefits from favorable price movements.

other commercial commitmentsmillions    | total  | amount of commitment expiration per period 2012 | amount of commitment expiration per period 2013 | amount of commitment expiration per period 2014 | amount of commitment expiration per period 2015 | amount of commitment expiration per period 2016 | amount of commitment expiration per period after 2016
--------------------------------------- | ------ | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ----------------------------------------------- | -----------------------------------------------------
credit facilities [a]                   | $ 1800 | $ -                                             | $ -                                             | $ -                                             | $ 1800                                          | $ -                                             | $ -
receivables securitization facility [b] | 600    | 600                                             | -                                               | -                                               | -                                               | -                                               | -
guarantees [c]                          | 325    | 18                                              | 8                                               | 214                                             | 12                                              | 13                                              | 60
standby letters of credit [d]           | 24     | 24                                              | -                                               | -                                               | -                                               | -                                               | -
total commercialcommitments             | $ 2749 | $ 642                                           | $ 8                                             | $ 214                                           | $ 1812                                          | $ 13                                            | $ 60


operating cash flows impacted by seasonality businesses.
 typically generate most operating cash flow in third and fourth quarters of each year.
 in june 2015  issued $ 900 million of senior notes in registered public offering.
 senior notes consist of two tranches : $ 400 million five-year notes due 2020 coupon 3% ( 3 % ) and $ 500 million ten-year notes due 2025 coupon 4% ( 4 % ).
 used proceeds from senior notes to pay down revolving credit facility for general corporate purposes.
 on december 31 , 2017 outstanding amount senior notes net of underwriting commissions price discounts was $ 892. 6 million.
 cash flows summary of cash flows for years ended december 31, 2017 , 2016 2015.
 in millions ) 2017 2016 2015.
 net cash operating activities was $ 600. 3 million in 2017 compared to $ 650. 5 million in 2016 $ 429. 2 million in 2015.
 $ 50. 2 million decrease in cash operating activities from 2017 to 2016 due to higher build in working capital higher inventory purchases 2017 partially offset by higher net income.
 $ 221. 3 million increase in cash operating activities from 2015 to 2016 due to reduction in working capital in 2016 higher net income.
 net cash used in investing activities was $ 287. 7 million in 2017 compared to $ 385. 1 million in 2016 $ 766. 6 million in 2015.
 decrease of $ 97. 4 million from 2016 to 2017 due lower cost of acquisitions of $ 115. 1 million  offset by $ 15. 7 million higher capital expenditures.
 decrease of $ 381. 5 million from 2015 to 2016 due decrease in cost of acquisitions of $ 413. 1 million offset by $ 20. 8 million higher capital spending.
 net cash used in financing activities was $ 250. 1 million in 2017 compared to net cash $ 250.4 million in 2016 net cash by financing activities $ 398. 8 million in 2015.
 change of $ 649. 2 million in 2016 compared to 2015 primarily due to $ 372. 8 million higher share repurchases lower net borrowings of $ 240. 8 million.
 pension plans subsidiaries of fortune brands sponsor defined benefit pension plans funded by portfolio of investments within our benefit plan trust.
 in 2017 , 2016 2015  contributed $ 28. 4 million  zero and $ 2. 3 million  respectively to qualified pension plans.
 in 2018  expect to make pension contributions approximately $ 12. 8 million.
 as of december 31, 2017  fair value of total pension plan assets was $ 656. 6 million  representing funding of 79% ( 79 % ) of accumulated benefit obligation liability.
 foreseeable future believe sufficient liquidity to meet minimum funding required by pension protection act of 2006.
 foreign exchange operations in various foreign countries  principally canada  china mexico united kingdom  france australia japan.
 changes in value of related currencies affect financial statements when translated into.
 dollars.

( in millions )                                       | 2017             | 2016             | 2015
----------------------------------------------------- | ---------------- | ---------------- | ----------------
net cash provided by operating activities             | $ 600.3          | $ 650.5          | $ 429.2
net cash used in investing activities                 | -287.7 ( 287.7 ) | -385.1 ( 385.1 ) | -766.6 ( 766.6 )
net cash ( used in ) provided by financing activities | -250.1 ( 250.1 ) | -250.4 ( 250.4 ) | 398.8
effect of foreign exchange rate changes on cash       | 9.0              | -2.0 ( 2.0 )     | -14.8 ( 14.8 )
net increase in cash and cash equivalents             | $ 71.5           | $ 13.0           | $ 46.6


in emerging markets , such as ghana , india  nigeria uganda , wireless networks less advanced than in united states , initial voice networks continue to deployed in underdeveloped areas.
 majority of consumers in these markets still utilize basic wireless services  predominantly on feature phones , advanced device penetration remains low.
 in more developed urban locations these markets , early-stage data network deployments underway.
 carriers focused on completing voice network build-outs while investing in initial data networks as wireless data usage and smartphone penetration customer bases accelerate.
 in markets with rapidly evolving network technology , as south africa most countries in latin america we do business , initial voice networks  for most part have already been built out , carriers focused on 3g and 4g network build outs.
 consumers in these regions increasingly adopting smartphones other advanced devices , usage of bandwidth-intensive mobile applications growing materially.
 recent spectrum auctions in these rapidly evolving markets allowed incumbent carriers to accelerate data network deployments enabled new entrants to begin initial investments in data networks.
 smartphone penetration and wireless data usage in these markets growing rapidly , requires carriers continue to invest in networks in to maintain and augment quality of service.
 in markets with more mature network technology  as germany france  carriers focused on deploying 4g data networks to account for rapidly increasing wireless data usage customer base.
 with higher smartphone and advanced device penetration higher per capita data usage , carrier investment in networks focused on 4g coverage and capacity.
 believe network technology migration seen in united states , led to denser networks meaningful new business commencements for over , will be replicated in less advanced international markets.
 we expect to to leverage our extensive international portfolio of approximately 104470 communications sites relationships built with carrier customers to drive sustainable  long-term growth.
 have master lease agreements with certain tenants provide for consistent long-term revenue reduce likelihood of churn.
 master lease agreements build augment strong strategic partnerships with tenants reduced colocation cycle times , providing tenants with ability to rapidly efficiently deploy equipment on our sites.
 property operations new site revenue growth.
 during year ended december 31 , 2016, we grew our portfolio of communications real estate through acquisition and construction of approximately 45310 sites.
 in majority of asia , emea and latin america markets  revenue from newly acquired or constructed sites resulted in increases in tenant and pass-through revenues ( ground rent or power and fuel costs ) and expenses.
 we continue to evaluate opportunities to acquire communications real estate portfolios  domestically and internationally, to determine they meet our risk-adjusted hurdle rates can integrate them into our existing portfolio.
 property operations expenses.
 direct operating expenses by property segments include direct site level expenses consist primarily of ground rent power and fuel costs  some or may passed through to tenants property taxes , repairs and maintenance.
 these segment direct operating expenses exclude all segment and corporate selling , general , administrative and development expenses , aggregated into one line item entitled selling , general , administrative and development expense in consolidated statements of operations.
 in our property segments 2019 selling , general , administrative development expenses do not significantly increase of adding incremental tenants to sites typically increase only modestly year-over-year.
 leasing additional space to new tenants on sites provides significant incremental cash flow.
we may  incur additional segment selling  general  administrative development expenses as we increase our presence in existing markets or expand into new markets.
 our profit margin growth positively impacted by addition of new tenants but can be temporarily diluted by development activities.

new sites ( acquired or constructed ) | 2016  | 2015  | 2014
------------------------------------- | ----- | ----- | ----
u.s .                                 | 65    | 11595 | 900
asia                                  | 43865 | 2330  | 1560
emea                                  | 665   | 4910  | 190
latin america                         | 715   | 6535  | 5800


management 2019s discussion analysis liquidity risk management liquidity critical importance to financial institutions.
 most recent failures of financial institutions occurred in due to insufficient liquidity.
 firm has in place comprehensive conservative liquidity and funding policies to address firm-specific and broader industry or market liquidity events.
 principal objective is to to fund firm enable core businesses to continue serve clients generate revenues even under adverse circumstances.
 we manage liquidity risk according to principles : excess liquidity.
 maintain substantial excess liquidity to meet broad potential cash outflows collateral needs in stressed environment.
 asset-liability management.
 assess anticipated holding periods for assets and expected liquidity in stressed environment.
 manage maturities diversity of funding across markets, products counterparties maintain liabilities of appropriate tenor relative to asset base.
 contingency funding plan.
 maintain contingency funding plan framework for analyzing responding to liquidity crisis situation or periods market stress.
 framework sets forth plan of action to fund normal business activity in emergency stress situations.
 principles discussed in more detail below.
 excess liquidity important liquidity policy is to pre-fund estimated potential cash and collateral needs during liquidity crisis hold excess liquidity in form of unencumbered  highly liquid securities and cash.
 believe securities held in our global core excess would be readily convertible to cash in days  through liquidation, by entering repurchase agreements or from maturities of reverse repurchase agreements this cash would allow us to meet immediate obligations without needing to sell other assets or depend on additional funding from credit-sensitive markets.
 as of december 2012 and december 2011  fair value of securities and certain overnight cash deposits included in our gce totaled $ 174. 62 billion and $ 171. 58 billion , respectively.
based on results of our internal liquidity risk model  discussed below consideration of other factors including qualitative assessment of condition of financial markets and firm , we believe our liquidity position as of december 2012 was appropriate.
 table below presents fair value of securities and certain overnight cash deposits included in our gce.
 average for year ended december in millions 2012 2011.
.
 dollar-denominated excess is composed of i ) unencumbered.
 government and federal agency obligations ( including highly liquid.
 federal agency mortgage-backed obligations ) eligible as collateral in federal reserve open market operations and ii ) certain overnight.
 dollar cash deposits.
 non-u.
 dollar-denominated excess is composed of only unencumbered german , french  japanese united kingdom government obligations and certain overnight cash deposits in highly liquid currencies.
 we limit excess liquidity to this narrowly defined list of securities and cash because highly liquid  even in difficult funding environment.
 do not include other potential sources of excess liquidity less liquid unencumbered securities or committed credit facilities  in our gce.
 goldman sachs 2012 annual report 81

in millions                  | average for theyear ended december 2012 | average for theyear ended december 2011
---------------------------- | --------------------------------------- | ---------------------------------------
u.s . dollar-denominated     | $ 125111                                | $ 125668
non-u.s . dollar-denominated | 46984                                   | 40291
total                        | $ 172095                                | $ 165959


entergy corporation subsidiaries notes to financial statements december 31, 2008  system energy had future minimum lease payments ( reflecting implicit rate of 5. 13% ( 5. 13 % ) ) recorded as long-term debt amount ( in thousands ).

| amount ( in thousands )
------------------------------------------- | -----------------------
2009                                        | $ 47760
2010                                        | 48569
2011                                        | 49437
2012                                        | 49959
2013                                        | 50546
years thereafter                            | 103890
total                                       | 350161
less : amount representing interest         | 54857
present value of net minimum lease payments | $ 295304


humana inc.
 notes to consolidated financial statements 2014 continued ) in spe transactions.
 adoption of fin 46 or fin 46-r material impact on our financial position results of operations or cash flows.
 in december 2004  fasb issued statement no.
 123r , share-based payment  statement 123r  requires companies to expense fair value of employee stock options and other forms of stock-based compensation.
 requirement represents significant change because fixed-based stock option awards predominate form of stock compensation for not recognized as compensation expense under apb 25.
 statement 123r requires cost of award  determined on date of grant at fair value be recognized over period during employee required to provide service in exchange for award ( usually vesting period ).
 grant-date fair value of award estimated using option-pricing models.
 required to adopt statement 123r no later than july 1, 2005 under one of three transition methods including prospective , retrospective combination approach.
 disclosed on page 67 effect of expensing stock options under fair value approach using black-scholes pricing model for 2004 , 2003 2002.
 evaluating provisions of statement 123r and expected effect on us including reviewing compensation strategies related to stock-based awards selecting option pricing model determining transition method.
 in march 2004  fasb issued eitf issue no.
 03-1  eitf 03-1  meaning of other-than- temporary impairment application to certain investments.
 eitf 03-1 includes new guidance for evaluating and recording impairment losses on certain debt and equity investments when fair value of investment security is less than carrying value.
 in september 2004  fasb delayed scheduled third quarter 2004 effective date until issuance of additional implementation guidance expected in 2005.
upon issuance of final standard  evaluate impact on consolidated financial position results of operations.
 3.
 acquisitions february 16 , 2005  acquired careplus health plans of florida  careplus  affiliated 10 medical centers pharmacy company.
 careplus provides medicare advantage hmo plans benefits to medicare eligible members in miami-dade , broward palm beach counties.
 acquisition enhances medicare market position in south florida.
 paid approximately $ 450 million in cash including estimated transaction costs subject to balance sheet settlement process with nine month claims run-out period.
 process of allocating purchase price to net tangible and intangible assets.
 april 1, 2004  acquired ochsner health plan , ochsner  from ochsner clinic foundation.
 ochsner is louisiana health benefits company offering network-based managed care plans to employer-groups medicare eligible members.
 acquisition enabled to enter new market with significant market share facilitate new sales opportunities in this surrounding markets including houston , texas.
 paid $ 157. 1 million in cash  including transaction costs.
 fair value of tangible assets ( liabilities ) as of acquisition date follows:.

| ( in thousands )
-------------------------------------------- | ----------------
cash and cash equivalents                    | $ 15270
investment securities                        | 84527
premiums receivable and other current assets | 20616
property and equipment and other assets      | 6847
medical and other expenses payable           | -71063 ( 71063 )
other current liabilities                    | -21604 ( 21604 )
other liabilities                            | -82 ( 82 )
net tangible assets acquired                 | $ 34511


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 , 2006 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.

| 3/31/2006 | 3/31/2007 | 3/31/2008 | 3/31/2009 | 3/31/2010 | 3/31/2011
------------------------------------------- | --------- | --------- | --------- | --------- | --------- | ---------
abiomed inc                                 | 100       | 105.89    | 101.86    | 37.98     | 80.00     | 112.64
nasdaq composite index                      | 100       | 103.50    | 97.41     | 65.33     | 102.49    | 118.86
nasdaq medical equipment sic code 3840-3849 | 100       | 88.78     | 84.26     | 46.12     | 83.47     | 91.35


determine stock-based compensation expense grant date fair value applied to options granted with reduction for estimated forfeitures.
 recognize compensation expense for stock options straight-line basis over specified vesting period.
 at december 31 , 2013 and 2012 options for 10204000 and 12759000 shares of common stock exercisable at weighted-average price of $ 89. 46 and $ 90. 86 .
 total intrinsic value of options exercised during 2014  2013 2012 was $ 90 million , $ 86 million and $ 37 million.
 cash received from option exercises under incentive plans for 2014 2013 2012 was approximately $ 215 million, $ 208 million and $ 118 million.
 tax benefit realized from option exercises under incentive plans for was approximately $ 33 million , $ 31 million and $ 14 million.
 shares of common stock available next year for granting of options and other awards under incentive plans were 17997353 at december 31 , 2014.
 total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 19017057 shares at december 31 , 2014 includes shares available for issuance under incentive plans and employee stock purchase plan ( ).
 during 2014  issued approximately 2. 4 million shares from treasury stock in connection with stock option exercise activity.
 intend to utilize primarily treasury stock for future stock option exercises.
 awards granted to non-employee directors in 2014 , 2013 2012 include 21490 , 27076 and 25620 deferred stock units awarded under outside directors deferred stock unit plan.
 deferred stock unit is phantom share of common stock accounted for as liability until awards paid to participants in cash.
 no vesting or service requirements on awards total compensation expense recognized in full for awards on date of grant.
incentive/performance unit share awards restricted stock/share unit awards fair value of nonvested incentive stock determined based on prices not less than market value of our common stock on date of grant.
 value of certain incentive/performance unit share awards remeasured based on achievement of one or more financial and other performance goals.
 personnel and compensation committee ( 201cp&cc 201d ) of board of directors approves final award payout certain incentive/performance unit share awards.
 these awards have three-year or four-year performance period payable in stock or combination of stock and cash.
 restricted stock/share unit awards have vesting periods from 3 years to 5 years.
 beginning in 2013  incorporated enhanced risk- related performance changes to long-term incentive compensation programs.
 to achieving certain financial performance metrics final payout amounts subject to reduction if pnc fails to meet certain risk-related performance metrics in award agreements.
 p&cc has discretion to waive any or this reduction under certain circumstances.
 weighted-average grant date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2014, 2013 and 2012 was $ 80. 79 , $ 64. 77 and $ 60. 68 per share , respectively.
 total fair value of incentive/performance unit share restricted stock/unit awards vested during 2014 , 2013 and 2012 was approximately $ 119 million , $ 63 million and $ 55 million , respectively.
 recognize compensation expense for such awards ratably over corresponding vesting and/or performance periods for each type of program.
table 121 nonvested incentive/performance unit share awards restricted stock unit awards 2013 rollforward shares thousands nonvested incentive performance unit shares weighted average grant date value restricted stock weighted average grant date value.
 pnc financial services group.
 2013 form 10-k 185

shares in thousands december 31 2013 | nonvested incentive/ performance unit shares 1647 | weighted-averagegrant datefair value $ 63.49 | nonvested restricted stock/ share units 3483 | weighted-averagegrant datefair value $ 62.70
------------------------------------ | ------------------------------------------------- | -------------------------------------------- | -------------------------------------------- | --------------------------------------------
granted                              | 723                                               | 79.90                                        | 1276                                         | 81.29
vested/released                      | -513 ( 513 )                                      | 63.64                                        | -962 ( 962 )                                 | 62.32
forfeited                            | -20 ( 20 )                                        | 69.18                                        | -145 ( 145 )                                 | 69.44
december 31 2014                     | 1837                                              | $ 69.84                                      | 3652                                         | $ 69.03


company had net realized capital losses 2015 $ 184. 1 million.
 2015 recorded $ 102. 2 million other-than-temporary impairments on fixed maturity securities $ 45. 6 million losses due to fair value re-measurements $ 36. 3 million net realized capital losses from sales fixed maturity equity securities.
 2014 net capital gains $ 84. 0 million due to $ 121. 7 million gains from fair value re-measurements maturity equity securities $ 1. 9 million net realized capital gains from sales fixed maturity equity securities offset by $ 39. 5 million other-than- temporary impairments on fixed maturity securities.
 2013 net realized capital gains $ 300. 2 million due to $ 258. 9 million gains due to fair value re-measurements maturity equity securities $ 42. 4 million net realized capital gains from sales fixed maturity equity securities offset by $ 1. 1 million other-than-temporary impairments on fixed maturity securities.
 company cash invested assets totaled $ 17. 7 billion at december 31 , 2015 87. 4% ( 87. 4 % ) fixed maturities cash 91. 4% ( 91. 4 % ) investment grade 8. 2% ( 8. 2 % ) equity securities 4. 4% ( 4. 4 % ) other invested assets.
 average maturity of fixed maturity securities 4. 1 years at december 31 , 2015 overall duration 3. 0 years.
december 31, 2015 company direct investments in commercial real estate mortgages material holdings of derivative investments ( other than equity index option contracts in item 8 , 201cfinancial statements supplementary data 201d - note 4 consolidated financial statements ) or securities of issuers experiencing cash flow difficulty management believes could threaten issuer meet debt service payments except-temporary impairments recognized.
 company 2019s investment portfolio includes structured commercial mortgage-backed securities ( 201ccmbs 201d ) book value $ 264. 9 million market value $ 266. 3 million.
 securities more than 70% ( 70 % ) of december 31, 2015 market value rated aaa by standard & poor 2019s financial services llc.
 securities more than 90% ( 90 % ) of market value rated investment grade by standard & poor 2019s.
 table reflects investment results for company for periods indicated:.
 pre-tax realized net unrealized net average investment effective capital ( losses ) capital gains ( dollars in millions ) investments ( 1 ) income ( 2 ) yield gains ( 3 ) ( losses ) 17430. 8$ 473. 8$ 2. 72% ( 2. 72 % ) ( 184. 1 ) $ ( 194. 0 ) $ 16831. 9 530. 6 3. 15% ( 3. 15 % ) 84. 0 20. 3 16472. 5 548. 5 3. 33% ( 3. 33 % ) 300. 2 ( 467. 2 ) 16220. 9 600. 2 3. 70% ( 3. 70 % ) 164. 4 161. 0 15680. 9 620. 0 3. 95% ( 3. 95 % ) 6. 9 106. 6 ( 1 ) average of beginning and ending carrying values of investments cash  less net funds held  future policy benefit reserve  non-interest bearing cash.
 bonds  common stock redeemable non-redeemable preferred stocks carried at market value.
 common stock actively managed carried at fair value.
 2 after investment expenses excluding net capital gains losses ).
 3 ) included in 2015  2014 2013 2012 2011 fair value re-measurements of ( $ 45. 6 ) million  $ 121. 7 million  $ 258. 9 million  $ 118. 1 million $ 4. 4 ) million  respectively.

( dollars in millions ) | december 31 , average investments ( 1 ) | december 31 , pre-tax investment income ( 2 ) | december 31 , pre-tax effective yield | december 31 , pre-tax realized net capital ( losses ) gains ( 3 ) | december 31 , pre-tax unrealized net capital gains ( losses )
----------------------- | --------------------------------------- | --------------------------------------------- | ------------------------------------- | ----------------------------------------------------------------- | -------------------------------------------------------------
2015                    | $ 17430.8                               | $ 473.8                                       | 2.72% ( 2.72 % )                      | $ -184.1 ( 184.1 )                                                | $ -194.0 ( 194.0 )
2014                    | 16831.9                                 | 530.6                                         | 3.15% ( 3.15 % )                      | 84.0                                                              | 20.3
2013                    | 16472.5                                 | 548.5                                         | 3.33% ( 3.33 % )                      | 300.2                                                             | -467.2 ( 467.2 )
2012                    | 16220.9                                 | 600.2                                         | 3.70% ( 3.70 % )                      | 164.4                                                             | 161.0
2011                    | 15680.9                                 | 620.0                                         | 3.95% ( 3.95 % )                      | 6.9                                                               | 106.6


segment includes awe our share of earnings for investment in ula provides expendable launch services to.
 government.
 space systems 2019 operating results included in millions ) :.
 2016 compared to 2015 space systems 2019 net sales 2016 increased $ 304 million  or 3% ( 3 % ) compared to 2015.
 increase attributable to net sales $ 410 million from awe following consolidation business third quarter 2016 approximately $ 150 million for commercial space transportation programs due to increased launch-related activities approximately $ 70 million higher net sales for programs primarily fleet ballistic missiles ) due to increased volume.
 increases partially offset by decrease in net sales $ 340 million for government satellite programs due to decreased volume primarily sbirs muos ) wind-down completion of mission solutions programs.
 space systems 2019 operating profit in 2016 increased $ 118 million  or 10% ( 10 % ) compared to 2015.
 increase attributable to non-cash pre-tax gain of $ 127 million to consolidation of awe $ 80 million increased equity earnings from joint ventures primarily ula ).
 increases partially offset by decrease of approximately $ 105 million for government satellite programs due to lower risk retirements primarily sbirs muos mission solutions programs decreased volume.
 adjustments not volume including net profit booking rate adjustments approximately $ 185 million lower in 2016 compared to 2015.
 2014 space systems 2019 net sales in 2015 decreased $ 97 million  or 1% ( 1 % )  compared to 2014.
 decrease attributable to $ 335 million lower net sales for government satellite programs due to decreased volume primarily aehf ) wind-down completion of mission solutions programs approximately $ 55 million for strategic missile defense systems due to lower volume.
 decreases partially offset by higher net sales of $ 235 million for businesses acquired in 2014 approximately $ 75 million for orion program due to increased volume.
space systems 2019 operating profit 2015 decreased $ 16 million 1% ( 1 % ) compared to 2014.
 operating profit increased $ 85 million for government satellite programs due to increased risk retirements.
 increase offset by lower operating profit $ 65 million for commercial satellite programs due to performance matters certain programs $ 35 million due to decreased equity earnings in joint ventures.
 adjustments not related to volume including net profit booking rate adjustments $ 105 million higher 2015 compared to 2014.
 equity earnings total equity earnings recognized by space systems primarily ula ) represented $ 325 million , $ 245 million $ 280 million or 25% ( 25 % ), 21% ( 21 % ) 24% ( 24 % ) of business segment 2019s operating profit 2016 , 2015 backlog backlog increased 2016 compared 2015 due to addition of awe 2019s backlog.
 backlog decreased 2015 compared 2014 due to lower orders for government satellite programs orion program higher sales orion program.
 expect space systems 2019 2017 net sales to decrease mid-single digit percentage range compared to 2016 driven by program lifecycles on government satellite programs partially offset by recognition of awe net sales full year 2017 versus partial year 2016 following consolidation of awe third quarter 2016.
 operating profit

| 2016             | 2015             | 2014
------------------ | ---------------- | ---------------- | ----------------
net sales          | $ 9409           | $ 9105           | $ 9202
operating profit   | 1289             | 1171             | 1187
operating margin   | 13.7% ( 13.7 % ) | 12.9% ( 12.9 % ) | 12.9% ( 12.9 % )
backlog atyear-end | $ 18900          | $ 17400          | $ 20300


new term loan facility  remaining unpaid principal amount of loans new facility due payable in full at maturity on june 6 , 2021.
 principal amounts outstanding under new revolving loan facility due payable in full at maturity on june 6 , 2021 subject to earlier repayment pursuant springing maturity date described above.
 in addition to paying interest on outstanding principal under borrowings obligated to pay quarterly commitment fee rate determined by reference total leverage ratio maximum commitment fee of 40% ( 40 % ) of applicable margin for eurocurrency loans.
 in july 2016  breakaway four , ltd.  borrower  nclc , guarantor entered supplemental agreement amended breakaway four loan to increase aggregate principal amount of commitments under multi-draw term loan credit facility from 20ac590. 5 million to 20ac729. 9 million.
 june 2016  took delivery of seven seas explorer.
 to finance payment due upon delivery export credit financing in place for 80% ( 80 % ) of contract price.
 associated $ 373. 6 million term loan bears interest at 3. 43% ( 3. 43 % ) maturity date of june 30 , 2028.
 principal and interest payments paid semiannually.
 december 2016  nclc issued $ 700. 0 million aggregate principal amount of 4. 750% ( 4. 750 % ) senior unsecured notes due december 2021 ( 201cnotes 201d ) in private offering ( 201d ).
 nclc used net proceeds from offering after deducting initial purchasers 2019 discount estimated fees and expenses cash on hand to purchase outstanding 5. 25% ( 5. 25 % ) senior notes due 2019 aggregate outstanding principal amount of $ 680 million.
 redemption of 5. 25% ( 5.25 % ) senior notes due 2019 completed january 2017.
 nclc pay interest on notes at 4. 750% ( 4. 750 % ) per annum  semiannually june 15 and december 15 each year commencing june 15 , 2017  to holders of record at close of business immediately preceding june 1 and december 1 , respectively.
 nclc may redeem notes  whole or part time prior to december 15 , 2018 price equal to 100% ( 100 % ) of principal amount notes redeemed plus accrued and unpaid interest to not including redemption date and 201cmake-whole premium. 201d nclc may redeem notes whole or part on or after december 15 , 2018 at redemption prices set forth in indenture governing notes.
 any time ( may more than once ) or prior to december 15 , 2018  nclc may choose redeem up to 40% ( 40 % ) of aggregate principal amount notes at redemption price equal to 104. 750% ( 104. 750 % ) of face amount with amount equal to net proceeds of one or more equity offerings long at least 60% ( 60 % ) of aggregate principal amount of notes issued remains outstanding following redemption.
indenture governing notes contains covenants limit nclc 2019s ability ( and its restricted subsidiaries 2019 ability ) to  : i ) incur or guarantee additional indebtedness or issue preferred shares ; ii pay dividends make other restricted payments ; iii create restrictions on payment of dividends or other distributions to nclc from restricted subsidiaries ; iv ) create liens on assets to secure debt v make certain investments vi engage in transactions with affiliates vii engage in sales of assets and subsidiary stock viii ) transfer all or all assets or enter into merger or consolidation transactions.
 indenture governing notes provides for events of default , if occurs permit require principal , premium , interest other monetary obligations on all then-outstanding notes to become due and payable immediately.
 interest expense , net for year ended december 31 , 2016 was $ 276. 9 million included $ 34. 7 million of amortization of deferred financing fees $ 27. 7 million loss on extinguishment of debt.
 interest expense , net for year ended december 31 , 2015 was $ 221. 9 million included $ 36. 7 million of amortization of deferred financing fees $ 12. 7 million loss on extinguishment of debt.
 interest expense , net for year ended december 31 , 2014 was $ 151. 8 million included $ 32. 3 million of amortization of deferred financing fees $ 15. 4 million of expenses related to financing transactions in connection with acquisition of prestige.
 certain our debt agreements contain covenants require us to maintain minimum level of liquidity  limit our net funded debt-to-capital ratio  maintain certain other ratios restrict ability to pay dividends.
 all our ships and other property and equipment are pledged as collateral for certain our debt.
believe in compliance with covenants as of december 31, 2016.
 following scheduled principal repayments on long-term debt including capital lease obligations as of december 31 , 2016 next five years thousands ) :.
 accrued interest liability of $ 32. 5 million and $ 34. 2 million as of december 31 , 2016 and 2015  respectively.

year       | amount
---------- | ---------
2017       | $ 560193
2018       | 554846
2019       | 561687
2020       | 1153733
2021       | 2193823
thereafter | 1490322
total      | $ 6514604


for fiscal year 2005  effective tax rate includes impact of $ 11. 6 million tax expense associated with repatriation of approximately $ 185. 0 million of foreign earnings under provisions american jobs creation act of 2004.
 for fiscal year 2004  effective tax rate reflects tax benefit from higher earnings in low-tax jurisdictions.
 fiscal year 2006  due to tax accounting method change decrease of $ 83. 2 million in current deferred tax assets corresponding increase in non-current deferred tax assets.
 third quarter of fiscal year 2006  changed tax accounting method on tax return for fiscal year 2005 with respect to current portion of deferred revenue to follow recognition of revenue under.
 generally accepted accounting principles.
 accounting method change other adjustments to taxable income upon filing fiscal year 2005 tax return resulted in increase in operating loss ( nol ) carryforwards.
 in may 2006  tax increase prevention and reconciliation act of 2005 enacted provides three-year exception to current.
 taxation of certain foreign intercompany income.
 provision will first apply to synopsys in fiscal year 2007.
 management estimates such provisions applied for fiscal 2006  income tax expense would have been reduced by approximately $ 3 million.
 in december 2006  tax relief and health care act of 2006 enacted retroactively extended research and development credit from january 1 , 2006.
 record expected increase in fiscal 2006 research and development credit of between $ 1. 5 million and $ 1. 8 million in first quarter of fiscal 2007.
 revision of prior year financial statements.
 remediation of material weakness in internal control over financial reporting identified in fiscal 2005 to accounting for income taxes implemented additional internal control and review procedures.
 fourth quarter of fiscal 2006  identified four errors totaling $ 8.2 million affected income tax provision in fiscal years 2001 through 2005.
 concluded errors not material to prior year financial statements.
 prior elected to revise prior year financial statements to correct errors.
 fiscal periods errors originated resulting change in provision ( benefit ) for income taxes each year reflected in table : year ended october 31 ( in thousands ).
 errors : 1 ) synopsys inadvertently provided $ 1. 4 million tax benefit for write- off of goodwill acquisition in fiscal 2002 ; 2 ) synopsys did not accrue interest and penalties for foreign tax contingency items amount $ 3. 2 million ; 3 ) synopsys made computational errors relating to foreign dividends of $ 2. 3 million ; 4 ) synopsys did not record valuation allowance certain state tax credits of $ 1. 3 million.
 result of revision non-current deferred tax assets decreased by $ 8. 1 million current taxes payable increased by $ 0. 2 million.
 retained earnings decreased by $ 8. 2 million additional paid in capital decreased by $ 0. 1 million.
 see item 9a.
 controls and procedures for further discussion of remediation of material weakness.
 tax effects of stock awards.
 in november 2005 fasb issued staff position ( fsp ) on fas 123 ( r ) -3, transition election related to accounting for tax effects of share-based payment awards.
 effective upon issuance fsp describes alternative transition method for calculating tax effects of share-based compensation sfas 123 ( r ).
 alternative transition method includes simplified methods to establish beginning balance of additional paid-in capital pool ( apic pool ) related to tax effects of employee stock based compensation determine subsequent impact on apic pool and statement of cash flows of tax effects of employee share-based compensation

2001  | 2002   | 2003   | 2004           | 2005
----- | ------ | ------ | -------------- | ------
$ 205 | $ 1833 | $ 5303 | $ -748 ( 748 ) | $ 1636


table of contents company stock performance graph shows five-year comparison of cumulative total shareholder return , calculated on dividend reinvested basis for company , s&p 500 index  s&p computer hardware index  dow jones u. s.
 technology supersector index.
 graph assumes $ 100 invested in each of company 2019s common stock , s&p 500 index  s&p computer hardware index  dow jones u. s.
 technology supersector index as of market close on september 30 , 2008.
 data points on graph are annual.
 historic stock price performance not indicative of future stock price performance.
 fiscal year ending september 30.
 copyright 2013 s&p , division of mcgraw-hill companies inc.
 all rights reserved.
 copyright 2013 dow jones & co.
 all rights reserved.
 *$ 100 invested on 9/30/08 in stock or index , including reinvestment of dividends.
 september 30 , september 30.

| september 30 2008 | september 30 2009 | september 30 2010 | september 30 2011 | september 30 2012 | september 30 2013
----------------------------------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | -----------------
apple inc .                               | $ 100             | $ 163             | $ 250             | $ 335             | $ 589             | $ 431
s&p 500 index                             | $ 100             | $ 93              | $ 103             | $ 104             | $ 135             | $ 161
s&p computer hardware index               | $ 100             | $ 118             | $ 140             | $ 159             | $ 255             | $ 197
dow jones us technology supersector index | $ 100             | $ 111             | $ 124             | $ 128             | $ 166             | $ 175


notes to consolidated financial statements 2013 ( continued ) ( amounts in millions  except per share amounts ) guarantees we guaranteed certain obligations of subsidiaries relating to operating leases and uncommitted lines of credit of certain subsidiaries.
 as of december 31 , 2018 and 2017  parent company guarantees on lease obligations was $ 824. 5 and $ 829. 2 , parent company guarantees relating to uncommitted lines of credit was $ 349. 1 and $ 308. 8 , parent company guarantees related to daylight overdrafts manage intra-day overdrafts due to timing of transactions under cash pooling arrangements without incremental borrowings was $ 207. 8 and $ 182. 2 , respectively.
 in of non-payment by applicable subsidiary of obligations covered by guarantee we obligated to pay amounts covered by guarantee.
 as of december 31 , 2018 no material assets pledged as security for parent company guarantees.
 contingent acquisition obligations table details estimated future contingent acquisition obligations payable in cash as of december 31.
 entered into certain acquisitions contain redeemable noncontrolling interests and call options with similar terms and conditions.
 estimated amounts paid in event exercise at earliest exercise date.
 certain redeemable noncontrolling interests exercisable at discretion of noncontrolling equity owners as of december 31 , 2018.
 estimated payments of $ 24. 9 included within total payments expected in 2019  continue to carried forward into 2020 or beyond until exercised or expired.
 redeemable noncontrolling interests included in table at current exercise price payable in cash not at applicable redemption value in accordance with authoritative guidance for classification and measurement of redeemable securities.
majority of payments contingent upon achieving projected operating performance targets and satisfying other conditions specified in related agreements subject to revision in accordance with terms of respective agreements.
 see note 5 for further information relating to payment structure of our acquisitions.
 legal matters we involved in various legal proceedings  subject to investigations , inspections , audits  inquiries similar actions by governmental authorities arising in normal course of business.
 types of allegations in connection with legal proceedings vary in nature can include claims related to contract , employment , tax intellectual property matters.
 we evaluate all cases each reporting period record liabilities for losses from legal proceedings when determine probable outcome in legal proceeding be unfavorable and amount  potential range of loss can be reasonably estimated.
 in certain cases  we cannot reasonably estimate potential loss because  for example litigation in early stages.
 outcome related to litigation or governmental proceedings in involved cannot be predicted with certainty, management believes outcome of these matters individually in aggregate will not have material adverse effect on our financial condition , results of operations or cash flows.
 as previously disclosed on april 10 , 2015 , federal judge in brazil authorized search of records of agency 2019s offices in s e3o paulo and brasilia  in connection with ongoing investigation by brazilian authorities involving payments potentially connected to local government contracts.
 company had previously investigated matter taken remedial and disciplinary actions.
 company in process of concluding settlement related to these matters with government agencies settlement fully executed in april 2018.
 company previously provided for such settlement in consolidated financial statements.

| 2019   | 2020   | 2021   | 2022   | 2023   | thereafter | total
--------------------------------------------------------------------- | ------ | ------ | ------ | ------ | ------ | ---------- | -------
deferred acquisition payments                                         | $ 65.7 | $ 20.0 | $ 23.6 | $ 4.7  | $ 10.2 | $ 2.7      | $ 126.9
redeemable noncontrolling interests and call options with affiliates1 | 30.1   | 30.6   | 42.9   | 5.7    | 3.5    | 2.5        | 115.3
total contingent acquisition payments                                 | $ 95.8 | $ 50.6 | $ 66.5 | $ 10.4 | $ 13.7 | $ 5.2      | $ 242.2


notes to consolidated financial statements at december 31, 2007  future minimum rental payments required under operating leases for continuing operations initial noncancelable lease terms excess one year net of sublease rental income most pertain to real estate leases as follows : ( millions ).
 aon corporation

2008                            | $ 317
------------------------------- | ------
2009                            | 275
2010                            | 236
2011                            | 214
2012                            | 191
later years                     | 597
total minimum payments required | $ 1830


( v ) bankruptcy , insolvency similar proceedings  ( vi ) inability to pay debts  vii ) judgment defaults of $ 15 million or more viii ) customary erisa environmental defaults  ( ix ) actual or asserted invalidity of material provision loan documentation or impairment of portion collateral  x ) failure of subordinated indebtedness xi ) change of control.
 borrowings under credit agreement accrue interest at variable rates depend on type (.
 dollar or canadian dollar ) duration of borrowing plus applicable margin rate.
 weighted-average interest rates including effect of interest rate swap agreements on borrowings outstanding against senior secured credit facility at december 31 , 2010 and 2009 were 3. 97% ( 3. 97 % ) and 4. 53% ( 4. 53 % ) .
 borrowings against senior secured credit facility totaled $ 590. 1 million and $ 595. 7 million at december 31 , 2010 and 2009  $ 50. 0 million and $ 7. 5 million were classified as current maturities.
 incur commitment fees on unused portion of revolving credit facility ranging from 0. 38% ( 0. 38 % ) to 0. 50% ( 0. 50 % ).
 consideration for business acquisitions completed during 2010, 2009 2008 issued promissory notes totaling approximately $ 5. 5 million , $ 1. 2 million and $ 1. 6 million .
 notes bear interest at annual rates of 2. 0% ( 2. 0 % ) to 4. 0% ( 4. 0 % )  interest payable at maturity or in monthly installments.
.
 derivative instruments hedging activities exposed to market risks including effect of changes in interest rates foreign currency exchange rates commodity prices.
current policies we use derivatives to manage exposure to variable interest rates on credit agreement not attempt to hedge foreign currency and commodity price risks.
 do not hold or issue derivatives for trading purposes.
 at december 31 , 2010  had interest rate swap agreements in place to hedge variable interest rate risk on variable rate term loans objective of minimizing impact of interest rate fluctuations stabilizing cash flows.
 beginning on effective dates interest rate swap agreements monthly basis through maturity date we paid and will pay fixed interest rate received and will receive payment at variable rate of interest based on london interbank offered rate ( 201clibor 201d ) notional amount.
 interest rate swap agreements qualify as cash flow hedges elected to apply hedge accounting for swap agreements.
 effective portion of changes in fair value of interest rate swap agreements recorded in other comprehensive income reclassified to interest expense when underlying interest payment impact on earnings.
 ineffective portion of changes in fair value interest reported in interest expense.
 following table summarizes terms of interest rate swap agreements as of december 31 , 2010:.
 * includes applicable margin of 2. 25% ( 2. 25 % ) per annum in effect under credit agreement as of december 31 , 2010 fair market value of $ 200 million notional amount swap was liability of $ 1. 4 million  included in other accrued expenses on consolidated balance sheet.
 fair market value of other swap contracts was asset of $ 4. 8 million , included in other assets on consolidated balance sheet as of december 31 , 2010.
 as of december 31 , 2009  fair market value of interest rate swap contracts was liability of $ 10. 2 million included in other accrued expenses ( $ 5. 0 million ) and other noncurrent liabilities ( $ 5. 2 million ) on consolidated balance sheet.

notional amount | effective date  | maturity date   | fixed interest rate*
--------------- | --------------- | --------------- | --------------------
$ 200000000     | april 14 2008   | april 14 2011   | 4.99% ( 4.99 % )
$ 250000000     | october 14 2010 | october 14 2015 | 3.81% ( 3.81 % )
$ 100000000     | april 14 2011   | october 14 2013 | 3.34% ( 3.34 % )


republic services , inc.
 notes to consolidated financial statements 2014 continued charges amounts due probable at settlement.
 aggregate cash surrender value of life insurance policies was $ 90. 5 million and $ 77. 1 million as of december 31 , 2015 and 2014 classified in other assets in consolidated balance sheets.
 dcp liability was $ 83. 3 million and $ 76. 3 million as of december 31 , 2015 2014 classified in other long-term liabilities in balance sheets.
 employee stock purchase plan republic employees eligible to participate in employee stock purchase plan.
 plan allows participants purchase common stock for 95% ( 95 % ) of quoted market price last day of each calendar quarter.
 years ended december 31, 2015 , 2014 2013  issuances under plan totaled 141055 shares , 139941 shares 142217 shares.
 as of december 31 , 2015 shares reserved for issuance to employees totaled 0. 6 million republic held employee contributions of approximately $ 1. 4 million for purchase of common stock.
.
 stock repurchases dividends stock repurchases repurchase activity during years ended december 31 , 2015 and 2014 follows millions :.
 as of december 31 , 2015  0. 1 million repurchased shares pending settlement $ 3. 7 million unpaid included within accrued liabilities.
 in october 2015 board of directors added $ 900. 0 million to existing share repurchase authorization extends through december 31 , 2017.
 share repurchases under program may be made through open market purchases or privately negotiated transactions accordance with applicable federal securities laws.
board of directors approved program timing of purchases prices number of shares of common stock to purchased determined by management at discretion depend upon market conditions other factors.
 share repurchase program may be extended suspended or discontinued.
 as of december 31 , 2015  october 2015 repurchase program had remaining authorized purchase capacity of $ 855. 5 million.
 in december 2015 board of directors changed status of 71272964 treasury shares to authorized and unissued.
 number of issued shares reduced by stated amount.
 accounting policy is to deduct par value from common stock reflect excess of cost over par value as deduction from additional paid-in capital.
 change in unissued shares resulted in reduction of $ 2295. 3 million in treasury stock , $ 0. 6 million in common stock  $ 2294. 7 million in additional paid-in capital.
 no effect on total stockholders 2019 equity position of change.
 dividends in october 2015 board of directors approved quarterly dividend of $ 0. 30 per share.
 cash dividends declared were $ 404. 3 million , $ 383. 6 million and $ 357. 3 million for years ended december 31 , 2015 , 2014 and 2013  respectively.
 as of december 31 , 2015 recorded quarterly dividend payable of $ 103. 7 million to shareholders of record at close of business on january 4 , 2016.

| 2015    | 2014
------------------------------- | ------- | -------
number of shares repurchased    | 9.8     | 11.1
amount paid                     | $ 404.7 | $ 400.4
weighted average cost per share | $ 41.39 | $ 35.92


management 2019s discussion analysis believe our credit ratings primarily based on credit rating agencies 2019 assessment of : 2030 our liquidity , market  credit operational risk management practices ; 2030 level variability of our earnings ; 2030 capital base ; 2030 franchise , reputation management ; 2030 corporate governance ; 2030 external operating environment , including  some assumed level of government or other systemic support.
 certain our derivatives transacted under bilateral agreements with counterparties who may require us to post collateral or terminate transactions based on changes in credit ratings.
 we assess impact of these bilateral agreements by determining collateral or termination payments occur assuming a downgrade by all rating agencies.
 downgrade by any one rating agency , depending on agency 2019s relative ratings of us at time downgrade  may have impact comparable to impact of downgrade by all rating agencies.
 allocate portion of our gcla to ensure make additional collateral or termination payments required in event two-notch reduction in long-term credit ratings  collateral not been called by counterparties but available to them.
 table below presents additional collateral or termination payments related to our net derivative liabilities under bilateral agreements could have been called at reporting date by counterparties in event of one-notch and two-notch downgrade in credit ratings.
 $ in millions 2014 2013 additional collateral or termination payments for a one-notch downgrade $ 1072 $ 911 additional collateral or termination payments for two-notch downgrade 2815 2989 cash flows as global financial institution , our cash flows complex bear little relation to net earnings net assets.
 believe traditional cash flow analysis less meaningful in evaluating our liquidity position than liquidity and asset-liability management policies described above.
cash flow analysis macro trends strategic initiatives in businesses.
 year ended december 2014.
 cash cash equivalents decreased by $ 3. 53 billion to $ 57. 60 billion at end of 2014.
 used $ 22. 53 billion net cash for operating investing activities initiative to reduce balance sheet funding loans receivable.
 generated $ 19. 00 billion net cash from financing activities increase in bank deposits net proceeds from issuances unsecured long-term borrowings offset by repurchases of common stock.
 year ended december 2013.
 cash cash equivalents decreased by $ 11. 54 billion to $ 61. 13 billion at end of 2013.
 generated $ 4. 54 billion net cash from operating activities.
 used net cash $ 16. 08 billion for investing financing activities primarily to fund loans receivable repurchases of common stock.
 year ended december 2012.
 cash cash equivalents increased by $ 16. 66 billion to $ 72. 67 billion at end of 2012.
 generated $ 9. 14 billion net cash from operating investing activities.
 generated $ 7. 52 billion net cash from financing activities from increase in bank deposits offset by net repayments of unsecured secured long-term borrowings.
 78 goldman sachs 2014 annual report

$ in millions                                                           | as of december 2014 | as of december 2013
----------------------------------------------------------------------- | ------------------- | -------------------
additional collateral or termination payments for a one-notch downgrade | $ 1072              | $ 911
additional collateral or termination payments for a two-notch downgrade | 2815                | 2989


adobe systems incorporated notes to consolidated financial statements foreign currency translation translate assets liabilities of foreign subsidiaries functional currency is local currency at exchange rates in effect at balance sheet date.
 translate revenue and expenses at monthly average exchange rates.
 include accumulated net translation adjustments in stockholders 2019 equity as component of accumulated other comprehensive income.
 property and equipment record property equipment at cost less accumulated depreciation and amortization.
 property equipment depreciated using straight-line method over estimated useful lives from 1 to 5 years for computers and equipment 1 to 6 years for furniture and fixtures up to 35 years for buildings.
 leasehold improvements amortized using straight-line method over lesser of remaining lease term or useful lives.
 goodwill  purchased intangibles other long-lived assets review goodwill for impairment annually or more frequently if facts circumstances warrant review.
 completed annual impairment test in second quarter of fiscal 2009 determined no impairment.
 goodwill assigned to one or more reporting segments on date of acquisition.
 evaluate goodwill for impairment by comparing fair value of reporting segments to carrying value including associated goodwill.
 determine fair values use market approach based on comparable publicly traded companies in similar lines businesses income approach based on estimated discounted future cash flows.
 cash flow assumptions consider historical and forecasted revenue  operating costs other relevant factors.
 amortize intangible assets with finite lives over estimated useful lives review them for impairment whenever impairment indicator exists.
 continually monitor events changes in circumstances could indicate carrying amounts of long-lived assets including intangible assets may not be recoverable.
 when events changes occur assess recoverability by determining whether carrying value of assets will be recovered through undiscounted expected future cash flows.
if future undiscounted cash flows less than carrying amount of assets , we recognize impairment loss based on excess of carrying amount over fair value of assets.
 did not recognize intangible asset impairment charges in fiscal 2009 , 2008 or 2007.
 intangible assets amortized over estimated useful lives of 1 to 13 years as shown in table below.
 amortization based on pattern in economic benefits of intangible asset consumed.
 weighted average useful life ( years ).
 software development costs capitalization of software development costs for software to be sold , leased , or marketed begins upon establishment of technological feasibility , generally completion of working prototype certified as no critical bugs and release candidate.
 amortization begins once software ready for intended use , generally based on pattern in economic benefits consumed.
 to date software development costs incurred between completion of working prototype and general availability of related product not material.
 revenue recognition our revenue derived from licensing of software products , consulting , hosting services and maintenance and support.
 primarily we recognize revenue when persuasive evidence of arrangement exists , delivered product or performed service , fee is fixed or determinable and collection is probable.

| weighted average useful life ( years )
------------------------------------ | --------------------------------------
purchased technology                 | 7
localization                         | 1
trademarks                           | 7
customer contracts and relationships | 10
other intangibles                    | 2


intangible assets patents , customer-related intangible assets other assets with finite useful lives amortized straight-line basis over estimated economic lives.
 weighted-average useful lives approximate following:.
 recoverability of intangible assets with finite useful lives assessed same manner as property , plant equipment.
 income taxes : for company 2019s consolidated financial statements for periods prior to spin-off income tax expense recorded as if company filed tax returns stand-alone basis separate from ingersoll rand.
 separate return methodology applies accounting guidance for income taxes to stand-alone financial statements as if company stand-alone enterprise for periods prior to spin-off.
 cash tax payments items current and deferred taxes may not be reflective of company 2019s actual tax balances prior to or subsequent to spin-off.
 cash paid for income taxes  net of refunds for twelve months ended december 31, 2016 and 2015 was $ 10. 4 million and $ 80. 6 million , respectively.
 2016 net cash income taxes paid includes refund of $ 46. 2 million received from canadian tax authorities.
 income tax accounts reflected in consolidated balance sheet as of december 31 , 2016 and 2015 include income taxes payable and deferred taxes allocated to company at time of spin-off.
 calculation of company 2019s income taxes involves judgment use of estimates and allocations.
 deferred tax assets and liabilities determined based on temporary differences between financial reporting and tax bases of assets liabilities  applying enacted tax rates expected to in effect for year in which differences expected to reverse.
 company recognizes future tax benefits  net operating losses tax credits to extent realizing these benefits considered judgment more likely than not.
company reviews recoverability of deferred tax assets considering historic profitability , projected future taxable income , timing of reversals of existing temporary differences feasibility of tax planning strategies.
 where appropriate , company records valuation allowance with respect to future tax benefit.
 product warranties : standard product warranty accruals recorded at time of sale estimated based upon product warranty terms and historical experience.
 company assesses adequacy of liabilities make adjustments as necessary based on known or anticipated warranty claims , or as new information becomes available.
 revenue recognition : revenue recognized and earned when criteria are satisfied : ( a ) persuasive evidence of sales arrangement exists ; b ) price is fixed or determinable ; c ) collectability is reasonably assured ; ( d ) delivery has occurred or service rendered.
 delivery generally occurs when title and risks and rewards of ownership transferred to customer.
 both persuasive evidence of sales arrangement and fixed or determinable price criteria deemed to satisfied upon receipt of executed legally binding sales agreement or contract defines terms and conditions of transaction including respective obligations of parties.
 if defined terms and conditions allow variability in all or component of price , revenue not recognized until time price becomes fixed or determinable.
 at point of sale , company validates existence of enforceable claim requires payment within reasonable amount time and assesses collectability of claim.
 if collectability not to reasonably assured, revenue recognition deferred until collectability becomes probable or cash is received.
 delivery not considered to occurred until customer has taken title and assumed risks and rewards of ownership.
 service and installation revenue recognized when earned.
 in some instances , customer acceptance provisions are included in sales arrangements to give buyer ability to ensure delivered product or service meets criteria established in order.
in these instances , revenue recognition deferred until acceptance terms in arrangement fulfilled through customer acceptance or demonstration established criteria satisfied.
 if uncertainty exists about customer acceptance , revenue not recognized until acceptance occurred.
 company offers various sales incentive programs to customers , dealers  distributors.
 sales incentive programs do not preclude revenue recognition but require accrual for company 2019s best estimate of expected activity.
 examples of sales incentives accrued for as contra receivable and sales deduction at point of sale include  not to  discounts ( i.
 net 30 type ) , coupons , rebates where customer not to provide additional requirements to receive discount.
 sales returns and customer disputes involving question of quantity or price also accounted for as a

customer relationships       | 25 | years
---------------------------- | -- | -----
trademarks                   | 25 | years
completed technology/patents | 10 | years
other                        | 25 | years


stock price performance following graph shows comparison of cumulative total return on our common stock , standard & poor 2019s 500 index standard & poor 2019s retail index.
 graph assumes value of investment in our common stock and in each index was $ 100 on december 31 , 2011 , dividends reinvested.
 comparison based on historical data not intended to forecast possible future performance of common stock.
 comparison of cumulative total return among advance auto parts , inc. , s&p 500 index s&p retail index company/index december 31 , december 29 , december 28 , january 3, january 2 , december 31.

company/index      | december 31 2011 | december 29 2012 | december 28 2013 | january 3 2015 | january 2 2016 | december 31 2016
------------------ | ---------------- | ---------------- | ---------------- | -------------- | -------------- | ----------------
advance auto parts | $ 100.00         | $ 102.87         | $ 158.46         | $ 228.88       | $ 217.49       | $ 244.64
s&p 500 index      | 100.00           | 114.07           | 152.98           | 174.56         | 177.01         | 198.18
s&p retail index   | 100.00           | 122.23           | 178.55           | 196.06         | 245.31         | 256.69


management 2019s discussion analysis 132 jpmorgan chase & co. /2010 annual report unpaid principal balance due to negative amortization of option arms was $ 24 million and $ 78 million at december 31 , 2010 and 2009  respectively.
 firm estimates balances of option arm loans will experience recast in payment increase : $ 72 million in 2011  $ 241 million in 2012 $ 784 million in 2013.
 firm did not originate option arms new originations discontinued by washington mutual prior to jpmorgan chase 2019s acquisition of banking operations.
 subprime mortgages at december 31, 2010 were $ 11. 3 billion  compared with $ 12. 5 billion at december 31 , 2009.
 decrease due to paydowns charge-offs on delinquent loans offset by addition of loans adoption of accounting guidance.
 late-stage delinquencies remained elevated continued improve slower rate during second half year early-stage delinquencies stabilized at elevated level period.
 nonaccrual loans improved of improvement in late-stage delinquencies.
 charge-offs reflected modest improvement.
 auto : loans at december 31, 2010 were $ 48. 4 billion  compared with $ 46. 0 billion at december 31 , 2009.
 delinquent and nonaccrual loans decreased.
 net charge-offs declined 52% ( 52 % ) from prior year.
 provision expense de- creased due to favorable loss severity strong used- car market nationwide reduced loss frequency due to tightening of underwriting criteria.
 auto loan portfolio reflected high concentration of prime quality credits.
 business banking : business banking loans at december 31 , 2010  were $ 16. 8 billion  compared with $ 17. 0 billion at december 31 , 2009.
decrease result of run-off of washington mutual portfolio charge-offs on delinquent loans.
 these loans include loans highly collateralized often with personal loan guarantees.
 nonaccrual loans continued remain elevated.
 after increased first half 2010 nonaccrual loans as of december 31 , 2010 declined to year-end 2009 levels.
 student and other loans at december 31 , 2010  including loans held-for-sale were $ 15. 3 billion  compared with $ 16. 4 billion at december 31 , 2009.
 other loans include other secured and unsecured consumer loans.
 delinquencies reflected stabilization in second half of 2010 but remained elevated.
 charge-offs during 2010 remained flat with 2009 levels reflecting impact of elevated unemployment levels.
 purchased credit-impaired loans : pci loans at december 31 , 2010 were $ 72. 8 billion compared with $ 81. 2 billion at december 31 , 2009.
 portfolio represents loans acquired in washing- ton mutual transaction recorded at fair value at time of acquisition.
 fair value included estimate of credit losses expected over remaining lives of loans no allowance for loan losses recorded for these loans as of acquisition date.
 firm updates principal and interest cash flows expected collected for loans.
 probable decreases in expected loan principal cash flows trigger recognition of impairment through provision for loan losses.
 probable significant increases in expected cash flows (. decreased principal credit losses net benefit of modifications ) reverse any recorded allowance for loan losses remaining increase in expected cash flows recognized prospectively in interest income over remaining estimated lives of underlying loans.
2010 , management concluded firm assessment of pci pools probable higher expected principal credit losses result in decrease in expected cash flows.
 firm recognized aggregate $ 3. 4 billion impairment related to home equity  prime mortgage  option arm subprime mortgage pci portfolios.
 result impairment firm 2019s allowance for loan losses for home equity prime mortgage option arm subprime mortgage portfolios was $ 1. 6 billion , $ 1. 8 billion , $ 1. 5 billion and $ 98 million  at december 31, 2010 compared with allowance for loan losses of $ 1. 1 billion and $ 491 million for prime mortgage and option arm pci portfolios at december 31 , 2009.
 approximately 39% ( 39 % ) of option arm borrowers were delinquent 5% ( 5 % ) making interest-only or negatively amortizing payments 56% ( 56 % ) were making amortizing payments.
 approximately 50% ( 50 % ) of current borrowers subject to risk of payment shock due to future payment recast ; all remaining loans modified to fixed rate fully amortizing loan.
 cumulative unpaid interest added to unpaid principal balance of option arm pci pool was $ 1. 4 billion and $ 1. 9 billion at de- cember 31 , 2010 and 2009.
 firm estimates following balances of option arm pci loans will experience recast in payment increase : $ 1. 2 billion in 2011 , $ 2. 7 billion in 2012 $ 508 million in 2013.
 following table provides summary of lifetime loss estimates included in nonaccretable difference and allowance for loan losses.
 principal charge-offs not recorded on pools until nonaccretable difference fully depleted.
 lifetime loss estimates ( a ) ltd liquidation losses ( b ).
a ) includes original nonaccretable difference in purchase accounting $ 30. 5 billion for principal losses only.
 remaining nonaccretable difference $ 14. 1 billion and $ 21. 1 billion at december 31, 2010 and 2009 .
 probable increases in principal losses foregone interest subsequent purchase date reflected in allowance for loan losses.
 b life-to-date ( 201cltd 201d ) liquidation losses represent realization of loss upon loan resolution.

december 31 ( in millions ) | lifetime loss estimates ( a ) 2010 | lifetime loss estimates ( a ) 2009 | lifetime loss estimates ( a ) 2010 | 2009
--------------------------- | ---------------------------------- | ---------------------------------- | ---------------------------------- | ------
option arms                 | $ 11588                            | $ 10650                            | $ 4860                             | $ 1744
home equity                 | 14698                              | 13138                              | 8810                               | 6060
prime mortgage              | 4870                               | 4240                               | 1495                               | 794
subprime mortgage           | 3732                               | 3842                               | 1250                               | 796
total                       | $ 34888                            | $ 31870                            | $ 16415                            | $ 9394


corporate/other includes global staff functions ( includes finance  risk  human resources legal compliance ) other corporate expense  global operations and technology ( o&t )  residual corporate treasury corporate items.
 at december 31 , 2009  segment had approximately $ 230 billion assets primarily of company 2019s liquidity portfolio including $ 110 billion of cash and cash equivalents.
 2009 vs.
 2008 revenues  net of interest expense declined due to pretax loss on debt extinguishment related to repayment of $ 20 billion of tarp trust preferred securities pretax loss with exit from loss-sharing agreement with u.
 government.
 revenues declined due to absence of 2008 sale of citigroup global services limited in o&t.
 partially offset by pretax gain related to exchange offers revenues higher intersegment eliminations.
 operating expenses increased primarily due to intersegment eliminations increases in compensation partially offset by lower repositioning reserves.
 2008 vs.
 2007 revenues  net of interest expense increased due to gain in 2007 on sale of certain corporate-owned assets higher intersegment eliminations offset by improved treasury hedging activities.
 operating expenses declined due to lower restructuring charges in 2008 reductions in incentive compensation benefits expense.

in millions of dollars                                             | 2009               | 2008             | 2007
------------------------------------------------------------------ | ------------------ | ---------------- | ----------------
net interest revenue                                               | $ -1663 ( 1663 )   | $ -2680 ( 2680 ) | $ -2008 ( 2008 )
non-interest revenue                                               | -8893 ( 8893 )     | 422              | -302 ( 302 )
total revenues net of interest expense                             | $ -10556 ( 10556 ) | $ -2258 ( 2258 ) | $ -2310 ( 2310 )
total operating expenses                                           | $ 1420             | $ 510            | $ 1813
provisions for loan losses and for benefits and claims             | -1 ( 1 )           | 1                | -3 ( 3 )
( loss ) from continuing operations before taxes                   | $ -11975 ( 11975 ) | $ -2769 ( 2769 ) | $ -4120 ( 4120 )
income taxes ( benefits )                                          | -4369 ( 4369 )     | -587 ( 587 )     | -1446 ( 1446 )
( loss ) from continuing operations                                | $ -7606 ( 7606 )   | $ -2182 ( 2182 ) | $ -2674 ( 2674 )
income ( loss ) from discontinued operations net of taxes          | -445 ( 445 )       | 4002             | 708
net income ( loss ) before attribution of noncontrolling interests | $ -8051 ( 8051 )   | $ 1820           | $ -1966 ( 1966 )
net income attributable to noncontrolling interests                | 2014               | 2014             | 2
net income ( loss )                                                | $ -8051 ( 8051 )   | $ 1820           | $ -1968 ( 1968 )


2009 , company extended contractual life of 4 million fully vested share options held by 6 employees.
 modification company recognized additional compensation expense of $ 1 million for year ended december 31 , 2009.
 restricted stock units ( 201crsus 201d ) performance-based rsus.
 company grants performance-based rsus to company 2019s executive officers and certain employees once per year.
 company may also grant performance-based rsus to new employees or employees assume positions of increasing responsibility events.
 number of performance-based rsus vest dependent on or both terms specific award agreement : achievement of 1 ) internal profitability targets ( performance condition ) and 2 ) market performance targets measured by comparison company 2019s stock performance versus defined peer group ( market condition ).
 performance-based rsus generally cliff-vest during company 2019s quarter-end september 30 black-out period three years from date of grant.
 ultimate number of shares of company 2019s series common stock issued range from zero to stretch  stretch defined individually under each award , net of personal income taxes withheld.
 market condition factored into estimated fair value per unit and compensation expense for each award based on probability of achieving internal profitability targets  recognized straight-line basis over term of respective grant , less estimated forfeitures.
 for performance-based rsus granted without performance condition  compensation expense based on fair value per unit recognized straight-line basis over term of grant  less estimated forfeitures.
 in april 2007  company granted performance-based rsus to certain employees vest annually in equal tranches beginning october 1 , 2008 through october 1 , 2011 include market condition.
 performance- based rsus awarded include catch-up provision provides for additional year of vesting of previously unvested amounts  subject to certain maximums.
compensation expense based on fair value per unit recognized straight-line basis over term grant less estimated forfeitures.
 summary of changes in performance-based rsus outstanding : number of weighted average fair value ( in thousands ) ( in $ ).
 fair value of shares vested for performance-based rsus during years ended december 31, 2009 and 2008 was $ 2 million and $ 3 million  respectively.
 no vestings during year ended december 31 , 2007.
 fair value for company 2019s performance-based rsus estimated at grant date using monte carlo simulation approach.
 simulation to randomly generate future stock returns for company each company defined peer group for each grant based on company-specific dividend yields volatilities stock return correlations.
 returns used to calculate future performance-based rsu vesting percentages simulated values of vested performance rsus discounted to present value using risk-free rate yielding expected value of performance-based rsus.
 %%transmsg*** transmitting job : d70731 pcn : 119000000 ***%%pcmsg|119 |00016|yes|no|02/10/2010 16:17|0|0|page valid  no graphics -- color : n|

| number of units ( in thousands ) | weighted average fair value ( in $ )
----------------------------- | -------------------------------- | ------------------------------------
nonvested at december 31 2008 | 1188                             | 19.65
granted                       | 420                              | 38.16
vested                        | -79 ( 79 )                       | 21.30
forfeited                     | -114 ( 114 )                     | 17.28
nonvested at december 31 2009 | 1415                             | 25.24


note 10 2013 debt long-term debt consisted of following ( in millions ) :.
 revolving credit facilities on october 9 , 2015 , entered into new $ 2. 5 billion revolving credit facility ( 5-year facility ) with various banks terminated existing $ 1. 5 billion revolving credit facility , scheduled to expire in august 2019.
 5-year facility , expires october 9 , 2020 , available for general corporate purposes.
 undrawn portion of 5-year facility available to serve as backup facility for issuance of commercial paper.
 may request banks may grant  discretion increase in borrowing capacity under 5-year facility of up to additional $ 500 million.
 no borrowings outstanding under 5-year facility as of during year ended december 31 , in contemplation of acquisition of sikorsky , on october 9 , 2015, entered into 364-day revolving credit facility ( 364-day facility  with 5-year facility  facilities ) with various banks provided $ 7. 0 billion of funding for general corporate purposes  including acquisition of sikorsky.
 concurrent with consummation of sikorsky acquisition  borrowed $ 6. 0 billion under 364-day facility.
 november 23 , 2015 , repaid all outstanding borrowings under 364-day facility with proceeds received from issuance of new debt ( see below ) terminated remaining commitments of lenders under 364-day facility.
 borrowings under facilities bear interest at rates based  option on eurodollar rate or base rate , as defined in facilities 2019 agreements.
bank 2019s obligation to make loans under 5-year facility subject to our compliance with representations warranties covenants including covenants limiting our ability subsidiaries 2019 ability to encumber assets covenant not to exceed maximum leverage ratio as defined in five-year facility agreement.
 as of december 31 , 2015 in compliance with all covenants in 5-year facility agreement our debt agreements.
 long-term debt on november 23 , 2015  issued $ 7. 0 billion of notes ( november 2015 notes ) in registered public offering.
 received net proceeds of $ 6. 9 billion from offering after deducting discounts debt issuance costs amortized as interest expense over life of debt.
 november 2015 notes consist of : 2022 $ 750 million maturing in 2018 with fixed interest rate of 1. 85% ( 1. 85 % ) ( 2018 notes ) ; 2022 $ 1. 25 billion maturing in 2020 fixed interest rate of 2. 50% ( 2. 50 % ) 2020 notes 2022 $ 500 million maturing in 2023 fixed interest rate of 3. 10% ( 3. 10 % 2023 notes ; 2022 $ 2. 0 billion maturing in 2026 fixed interest rate of 3. 55% ( 3. 55 % ) ( 2026 notes ) ; 2022 $ 500 million maturing in 2036 fixed interest rate of 4. 50% ( 4. 50 % ) 2036 notes ) 2022 $ 2. 0 billion maturing in 2046 with fixed interest rate of 4. 70% ( 4. 70 % ) ( 2046 notes ).
 we may option redeem some or all of november 2015 notes and unpaid interest by paying principal amount of notes being redeemed plus make-whole premium and accrued and unpaid interest to date of redemption.
interest payable on 2018 notes 2020 notes on may 23 november 23 each year , beginning may 23 , 2016 ; on 2023 notes 2026 notes on january 15 july 15 each year , beginning on july 15, 2016 ; on 2036 notes 2046 notes on may 15 november 15 each year , beginning on may 15 , 2016.
 november 2015 notes rank equally in right of payment with all existing unsecured unsubordinated indebtedness.
 proceeds of november 2015 notes used to repay $ 6. 0 billion of borrowings under 364-day facility for general corporate purposes.

| 2015           | 2014
--------------------------------------------------------------------------- | -------------- | ------------
notes with rates from 1.85% ( 1.85 % ) to 3.80% ( 3.80 % ) due 2016 to 2045 | $ 8150         | $ 1400
notes with rates from 4.07% ( 4.07 % ) to 5.72% ( 5.72 % ) due 2019 to 2046 | 6089           | 3589
notes with rates from 6.15% ( 6.15 % ) to 9.13% ( 9.13 % ) due 2016 to 2036 | 1941           | 1941
other debt                                                                  | 116            | 111
total long-term debt                                                        | 16296          | 7041
less : unamortized discounts and deferred financing costs                   | -1035 ( 1035 ) | -899 ( 899 )
total long-term debt net                                                    | $ 15261        | $ 6142


15.
 debt tables summarize outstanding debt at 30 september 2016 2015 total debt.
 weighted average interest rate of short-term borrowings at 30 september 2016 2015 1. 1% ( 1. 1 % ). 8% (. 8 % ) .
 cash paid for interest net amounts capitalized $ 121. 1 in 2016  $ 97. 5 in 2015 $ 132. 4 in 2014.

30 september                      | 2016     | 2015
--------------------------------- | -------- | --------
short-term borrowings             | $ 935.8  | $ 1494.3
current portion of long-term debt | 371.3    | 435.6
long-term debt                    | 4918.1   | 3949.1
total debt                        | $ 6225.2 | $ 5879.0
short-term borrowings             |          |
30 september                      | 2016     | 2015
bank obligations                  | $ 133.1  | $ 234.3
commercial paper                  | 802.7    | 1260.0
total short-term borrowings       | $ 935.8  | $ 1494.3


stock performance graph line graph compares cumulative total stockholder return on our common stock with cumulative total return dow jones u. s.
 technology index* standard & poor 2019s s&p 500* index for five years ended december 28 , 2013.
 graph table assume $ 100 invested december 26, 2008 ( last day of trading for fiscal year ended december 27, 2008 ) in each our common stock, dow jones u. s.
 technology index  s&p 500 index  all dividends reinvested.
 cumulative total stockholder returns for our common stock  dow jones u. s.
 technology index  s&p 500 index based on our fiscal year.
 comparison of five-year cumulative return for intel , dow jones u. s.
 technology index* s&p 500* index.
 table of contents

| 2008  | 2009  | 2010  | 2011  | 2012  | 2013
-------------------------------- | ----- | ----- | ----- | ----- | ----- | -----
intel corporation                | $ 100 | $ 148 | $ 157 | $ 191 | $ 163 | $ 214
dow jones u.s . technology index | $ 100 | $ 170 | $ 191 | $ 191 | $ 209 | $ 270
s&p 500 index                    | $ 100 | $ 132 | $ 151 | $ 154 | $ 175 | $ 236


shareowner return performance graph graph and related information not deemed 201csoliciting material 201d or 201cfiled 201d with securities and exchange commission  nor information incorporated into future filing under securities act of 1933 or securities exchange act of 1934  as amended except company specifically incorporates it reference into such filing.
 graph shows five-year comparison of cumulative total shareowners 2019 returns for class b common stock  s&p 500 index  dow jones transportation average.
 comparison of total cumulative return on investment  change in quarterly stock price plus reinvested dividends for quarterly periods assumes $ 100 invested on december 31, 2001 in s&p 500 index dow jones transportation average class b common stock of united parcel service .
 comparison of five year cumulative total return $ 40. 00 $ 60. 00 $ 80. 00 $ 100. 00 $ 120. 00 $ 140. 00 $ 160. 00 $ 180. 00 $ 200. 00 2001 2002 2003 2004 2005 2006 s&p 500 ups dj transport.
 securities authorized for issuance under equity compensation plans table provides information as of december 31 , 2006 regarding compensation plans under our class a common stock authorized for issuance.
 these plans do not authorize issuance of class b common stock.

| 12/31/01 | 12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06
-------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
united parcel service inc .      | $ 100.00 | $ 117.19 | $ 140.49 | $ 163.54 | $ 146.35 | $ 148.92
s&p 500 index                    | $ 100.00 | $ 77.90  | $ 100.24 | $ 111.15 | $ 116.61 | $ 135.02
dow jones transportation average | $ 100.00 | $ 88.52  | $ 116.70 | $ 149.06 | $ 166.42 | $ 182.76


jpmorgan chase & co.
 / 2008 annual report 83 credit risk capital estimated separately for wholesale business ( ib  cb  tss am ) and consumer businesses ( rfs cs ).
 credit risk capital for overall wholesale credit portfolio defined in unexpected credit losses  from defaults and declines in portfolio value due to credit deterioration measured over one-year period at confidence level consistent with 201caa 201d credit rating standard.
 unexpected losses are losses in excess of for provisions for credit losses maintained.
 capital methodology based upon principal drivers of credit risk : exposure at default loan-equivalent amount ) default likelihood  credit spreads  loss severity portfolio correlation.
 credit risk capital for consumer portfolio based upon product other relevant risk segmentation.
 actual segment level default severity experience used to estimate unexpected losses for one-year horizon confidence level consistent with 201caa 201d credit rating standard.
 statistical results for certain segments portfolios adjusted to ensure capital consistent with external bench- marks subordination levels on market transactions capital held at representative monoline competitors appropriate.
 market risk capital firm calculates market risk capital guided by capital should reflect risk of loss in value portfolios financial instruments caused by adverse movements in market vari- ables interest foreign exchange rates  credit spreads  securities prices commodities prices.
 daily value-at-risk ( 201cvar 201d )  biweekly stress-test results other factors to determine appropriate capital levels.
 firm allocates market risk capital to each business segment according to formula weights seg- ment 2019s var stress-test exposures.
 see market risk management on pages 111 2013116 of annual report for more information market risk measures.
operational risk capital allocated to lines of business for operational risk using risk-based capital allocation methodology estimates opera- tional risk bottom-up basis.
 operational risk capital model based upon actual losses potential scenario-based stress losses with adjustments to capital calculation to reflect changes in quality of control environment or use of risk-transfer prod- ucts.
 firm believes model consistent with new basel ii framework.
 private equity risk capital allocated to privately publicly held securities  third-party fund investments commitments in private equity portfolio to cover potential loss associated with decline in equity markets related asset devaluations.
 negative market fluctua- tions potential losses in private equity investment portfolios can be magnified by liquidity risk.
 capital allocation for private equity portfolio based upon measurement of loss experience suffered by firm other market participants over prolonged period adverse equity market conditions.
 regulatory capital board of governors of federal reserve system ( 201cfederal reserve ) establishes capital requirements including well-capitalized standards for consolidated financial holding company.
 office of the comptroller of the currency ( 201d ) establishes similar capital requirements standards for firm 2019s national banks  including jpmorgan chase bank , n. chase bank usa ,.
 federal reserve granted firm  for period 18 months bear stearns merger, relief up to certain specified amount subject to certain conditions from federal reserve 2019s risk-based capital and leverage requirements with respect to bear stearns 2019 risk-weighted assets other exposures acquired.
 amount of relief subject to reduction by one-sixth each quarter subsequent to merger expires on october 1 , 2009.
 occ granted jpmorgan chase bank , n.
 similar relief from risk-based capital and leverage requirements.
jpmorgan chase maintained well-capitalized position  based upon tier 1 total capital ratios at december 31 , 2008 2007  indicated in tables below.
 for more information see note 30 on pages 212 2013213 of annual report.
 risk-based capital components assets.
 ( ) fasb deliberating amendments to sfas 140 and fin 46r may impact accounting for transactions involve qspes and vies.
 based on provisions current proposal firm 2019s interpretation propos- al firm estimates impact of consolidation could be up to $ 70 billion credit card receivables , $ 40 billion assets related to firm-sponsored multi-seller conduits  $ 50 billion other loans ( including residential mortgages ) ; decrease in tier 1 capital ratio could be approximately 80 basis points.
 ulti- mate impact could differ significantly due to fasb 2019s continuing deliberations on final requirements of rule market conditions.

december 31 ( in millions )   | 2008      | 2007
----------------------------- | --------- | ---------
total tier 1capital ( a )     | $ 136104  | $ 88746
total tier 2 capital          | 48616     | 43496
total capital                 | $ 184720  | $ 132242
risk-weighted assets          | $ 1244659 | $ 1051879
total adjusted average assets | 1966895   | 1473541