biomet holdings , inc.
 2018 form 10-k annual report ( 8 ) incurred various expenses from specific events or projects consider highly variable or significant impact to operating results excluded from non-gaap financial measures.
 includes legal entity and operational restructuring costs of complying with dpa with u. s.
 government related to certain fcpa matters involving biomet and subsidiaries.
 under dpa , three-year term subject to oversight by independent compliance monitor  monitorship commenced in july 2017.
 excluded costs include fees paid to independent compliance monitor and external legal counsel assisting matter.
 ( 9 ) represents tax effects on previously specified items.
 tax effect for u. s.
 jurisdiction calculated based on effective rate considering federal and state taxes  permanent items.
 for jurisdictions outside u. s.  tax effect calculated based upon statutory rates where items incurred.
 ( 10 ) 2016 period includes negative effects from finalizing tax accounts for biomet merger.
 under applicable u. s.
 gaap rules  measurement period adjustments recognized on prospective basis in period of change.
 11 ) 2017 tax act resulted in net favorable provisional adjustment due to reduction of deferred tax liabilities for unremitted earnings and revaluation of deferred tax liabilities to 21 percent rate partially offset by provisional tax charges related to toll charge provision of 2017 tax act.
 in 2018  finalized estimates of effects of 2017 tax act based upon final guidance issued by u. s.
 tax authorities.
 ( 12 ) other certain tax adjustments in 2018 primarily related to changes in tax rates on deferred tax liabilities recorded on intangible assets recognized in acquisition-related accounting and adjustments from internal restructuring transactions provide access to offshore funds in tax efficient.
2017  tax adjustments relate to tax benefits from lower tax rates unrelated to impact 2017 tax act net favorable resolutions of tax matters net favorable adjustments from internal restructuring transactions.
 2016 adjustment related to favorable adjustment to deferred tax liabilities acquisition-related accounting favorable resolution of tax matters with taxing authorities offset by internal restructuring transactions provide access to offshore funds tax efficient manner.
 ( 13 ) diluted share count used in adjusted diluted eps : year ended december 31 , 2018.
 liquidity capital resources cash flows by operating activities were $ 1747. 4 million in 2018 compared to $ 1582. 3 million and $ 1632. 2 million in 2017 and 2016 respectively.
 increase in operating cash flows in 2018 compared to 2017 driven by additional cash flows from sale of accounts receivable in certain countries lower acquisition and integration expenses lower quality remediation expenses significant payments made in 2017 period.
 2017 period made payments related to.
 cup settlement program paid $ 30. 5 million in settlement payments to resolve previously-disclosed fcpa matters involving biomet subsidiaries discussed in note 19 to consolidated financial statements in item 8 report.
 decline in operating cash flows in 2017 compared to 2016 driven by additional investments in inventory additional expenses for quality remediation significant payments made in 2017 period.
 unfavorable items partially offset by $ 174. 0 million of incremental cash flows in 2017 from sale of accounts receivable in certain countries.
 cash flows used in investing activities were $ 416. 6 million in 2018 compared to $ 510. 8 million and $ 1691. 5 million in 2017 and 2016.
 instrument property , plant and equipment additions reflected ongoing investments in product portfolio optimization of manufacturing and logistics network.
2018  entered into receive-fixed-rate , pay-fixed-rate cross-currency interest rate swaps.
 investing cash flows reflect net cash inflows from fixed- rate interest rate receipts/payments termination of certain swaps in gain position year.
 2016 period included cash outflows for acquisition of ldr holding corporation ( 201cldr 201d ) other business acquisitions.
 2016 period reflects maturity of available-for-sale debt securities.
 investments matured used cash to pay off debt not reinvested in additional debt securities.
 cash flows used in financing activities were $ 1302. 2 million in 2018.
 primary use of available cash 2018 for debt repayment.
 received net proceeds of $ 749. 5 million from issuance of additional senior notes borrowed $ 400. 0 million from multicurrency revolving facility to repay $ 1150. 0 million of senior notes due on april 2, 2018.
 subsequently repaid $ 400. 0 million of multicurrency revolving facility borrowings.
 2018 borrowed another $ 675. 0 million under new u. s.
 term loan c used cash proceeds with cash generated from operations year to repay aggregate of $ 835. 0 million on u. s.
 term loan a , $ 450. 0 million on u. s.
 term loan b  repaid $ 140. 0 million on u. s.
 term loan c.
 overall had approximately $ 1150 million of net principal repayments on senior notes and term loans in 2018.
 2017 primary use of available cash for debt repayment compared to 2016 not able to repay as much debt due to financing requirements to complete ldr and other business acquisitions.
 in 2017 had net cash inflows of $ 103. 5 million on factoring programs not remitted to third party.
in 2018 , had net cash outflows related to factoring programs remitted $ 103. 5 million collected only $ 66. 8 million not yet remitted by end of year.
 since factoring programs started end of 2016 , not have similar cash flows in that year.
 january 2019  borrowed additional $ 200. 0 million under u. s.
 term loan c used proceeds with cash on hand to repay remaining $ 225. 0 million outstanding under u. s.
 term loan b.
 in february , may  august december 2018 board of directors declared cash dividends of $ 0. 24 per share.
 expect to continue paying cash dividends quarterly basis ; future dividends subject to approval of board of directors may be adjusted as business needs or market conditions change.
 discussed in note 11 to consolidated financial statements  debt facilities restrict payment of dividends in certain circumstances.

| year endeddecember 31 2018
------------------------------------- | --------------------------
diluted shares                        | 203.5
dilutive shares assuming net earnings | 1.5
adjusted diluted shares               | 205.0


federal realty investment trust schedule iii summary real estate accumulated depreciation three years ended december 31 2009 reconciliation accumulated depreciation amortization thousands ).

balance december 31 2006                                             | $ 740507
-------------------------------------------------------------------- | ----------------
additions during period 2014depreciation and amortization expense    | 96454
deductions during period 2014disposition and retirements of property | -80258 ( 80258 )
balance december 31 2007                                             | 756703
additions during period 2014depreciation and amortization expense    | 101321
deductions during period 2014disposition and retirements of property | -11766 ( 11766 )
balance december 31 2008                                             | 846258
additions during period 2014depreciation and amortization expense    | 103.698
deductions during period 2014disposition and retirements of property | -11869 ( 11869 )
balance december 31 2009                                             | $ 938087


guarantees adopted fasb interpretation no.
 45 ( 201cfin 45 201d ) , 201cguarantor 2019s accounting and disclosure requirements for guarantees  including indirect guarantees of indebtedness of others 201d beginning of fiscal 2003.
 see 201crecent accounting pronouncements 201d for further information regarding fin 45.
 lease agreements for three office buildings in san jose , california provide for residual value guarantees.
 lease agreements in place prior to december 31 , 2002 disclosed in note 14.
 normal course of business  provide indemnifications of varying scope to customers against claims of intellectual property infringement by third parties from use our products.
 historically costs related to indemnification provisions not significant unable to estimate maximum potential impact of indemnification provisions on future results of operations.
 commitments to make certain milestone/or retention payments typically entered conjunction with various acquisitions  for made accruals in consolidated financial statements.
 connection with purchases of technology assets during fiscal 2003  entered employee retention agreements totaling $ 2. 2 million.
 required to make payments upon satisfaction of certain conditions in agreements.
 as permitted under delaware law  agreements indemnify officers and directors for certain events or occurrences while officer or director is or serving  at our request in capacity.
 indemnification period covers all pertinent events and occurrences during officer 2019s or director 2019s lifetime.
 maximum potential amount of future payments required under indemnification agreements unlimited ; have director and officer insurance coverage limits exposure enables to recover portion of future amounts paid.
 believe estimated fair value of indemnification agreements in excess of applicable insurance coverage minimal.
our limited partnership interests in adobe ventures  we provided general indemnification to granite ventures , independent venture capital firm and sole general partner for certain events occurrences while granite ventures serving at our request provided granite ventures acts in good faith partnerships.
 unable to develop estimate of maximum potential future payments from hypothetical future claim but believe risk of payments under general indemnification to be remote.
 we accrue for costs associated with future obligations include costs for undetected bugs discovered after product installed used by customers.
 accrual remaining at end of fiscal 2003 relates to new releases of creative suites products during fourth quarter of fiscal 2003.
 table below summarizes activity related to accrual during fiscal 2003 : balance at november 29 , 2002 accruals payments balance at november 28 , 2003.
 advertising expenses expense all advertising costs as incurred classify these costs under sales and marketing expense.
 advertising expenses for fiscal years 2003 , 2002  and 2001 were $ 24. 0 million , $ 26. 7 million and $ 30. 5 million , respectively.
 foreign currency and other hedging instruments statement of financial accounting standards no.
 133 ( 201csfas no.
 133 201d ) , 201caccounting for derivative instruments and hedging activities , 201d establishes accounting reporting standards for derivative instruments hedging activities requires to recognize these as assets or liabilities on balance sheet measure them at fair value.
 described in note 15 , gains and losses resulting from

balance at november 29 2002 | accruals | payments         | balance at november 28 2003
--------------------------- | -------- | ---------------- | ---------------------------
$ 2014                      | $ 5554   | $ -2369 ( 2369 ) | $ 3185


intrinsic value of restricted stock awards vested during years ended december 31 , 2016 , 2015 2014 was $ 25 million , $ 31 million $ 17 million , respectively.
 restricted stock awards to employees have vesting periods from 1 year to 10 years.
 summary of future vesting of outstanding restricted stock awards : vesting of restricted shares.
 related compensation costs less estimated forfeitures recognized ratably over vesting period awards.
 upon vesting grants be paid in class p common shares.
 during 2016 , 2015 2014  recorded $ 66 million, $ 52 million $ 51 million  in expense related to restricted stock awards capitalized approximately $ 9 million , $ 15 million and $ 6 million , respectively.
 at december 31 , 2016 and 2015  unrecognized restricted stock awards compensation costs  less estimated forfeitures was approximately $ 133 million and $ 154 million , respectively.
 pension and other postretirement benefit plans savings plan maintain defined contribution plan covering eligible.
 employees.
 contribute 5% ( 5 % ) of eligible compensation for most plan participants.
 plan participants 2019 contributions and company contributions based on collective bargaining agreements.
 total expense for savings plan was approximately $ 48 million , $ 46 million , and $ 42 million for years ended december 31 , 2016  2015 2014 .
 pension plans.
 pension plan is defined benefit plan covers all.
 employees provides benefits under cash balance formula.
 participant in cash balance plan accrues benefits through contribution credits based on age and years of service eligible compensation.
 interest is credited to participant 2019s plan account.
 participant becomes fully vested in plan after three years may take lump sum distribution upon termination of employment or retirement.
collectively bargained grandfathered employees accrue benefits through career pay or final pay formulas.
 two our subsidiaries , kinder morgan canada inc.
 and trans mountain pipeline inc.
. are sponsors of pension plans for eligible canadian and trans mountain pipeline employees.
 plans include registered defined benefit pension plans  supplemental unfunded arrangements provide pension benefits in excess of statutory limits ) and defined contributory plans.
 benefits under defined benefit components accrue through career pay or final pay formulas.
 net periodic benefit costs  contributions liability amounts associated with canadian plans not material to consolidated income statements or balance sheets ; began to include activity and balances associated with canadian plans ( including canadian opeb plans discussed ) in disclosures prospective beginning in 2016.
 associated net periodic benefit costs for these combined canadian plans of $ 12 million and $ 10 million for years ended december 31, 2015 and 2014 reported separately in prior years.
 other postretirement benefit plans we.
 subsidiaries provide other postretirement benefits opeb including medical benefits for closed groups of retired employees certain grandfathered employees and dependents limited postretirement life insurance benefits for retired employees.
 canadian subsidiaries provide opeb benefits to current and future retirees and dependents.
 medical benefits under these opeb plans may be subject to deductibles  co-payment provisions  dollar

year              | vesting of restricted shares
----------------- | ----------------------------
2017              | 1476832
2018              | 2352443
2019              | 4358728
2020              | 539790
2021              | 199850
thereafter        | 110494
total outstanding | 9038137


acquisition date on or after beginning first annual reporting period or after december 15 , 2008.
 evaluate new requirements of statement no.
 141 ( r ) impact business combinations completed in 2009 or thereafter.
 in december 2007  fasb issued statement of financial accounting standards no.
 160 , noncontrolling interests in consolidated financial statements 2014an amendment of accounting research bulletin no.
 51.
 noncontrolling interest  minority interest  is portion of equity in subsidiary not attributable directly or indirectly to parent.
 statement no.
 160 establishes accounting and reporting standards for noncontrolling interest in subsidiary and for deconsolidation of subsidiary.
 under statement no.
 160  noncontrolling interests in subsidiary must be reported as component of consolidated equity separate from parent 2019s equity.
 amounts of consolidated net income attributable to both parent and noncontrolling interest must be reported separately on face of income statement.
 statement no.
 160 effective for fiscal years beginning or after december 15, 2008 earlier adoption prohibited.
 do not expect adoption of statement no.
 160 to material impact on financial statements and related disclosures.
 2008 estimates forward-looking statements discussion based on historical operating trends information used to prepare december 31, 2007 reserve reports and other data possession or available from third parties.
 forward-looking statements prepared assuming demand , curtailment  producibility general market conditions for oil , natural gas and ngls during 2008 substantially similar to those of 2007  unless otherwise noted.
 reference to 201cdisclosure regarding forward-looking statements 201d at beginning report.
 amounts related to canadian operations converted to u. s.
 dollars using projected average 2008 exchange rate of $ 0. 98 u. s.
 dollar to $ 1. 00 canadian dollar.
january 2007 , announced intent to divest west african oil and gas assets terminate operations in west africa  including equatorial guinea , cote d 2019ivoire  gabon other countries in region.
 november 2007  announced agreement to sell operations in gabon for $ 205. 5 million.
 finalizing purchase and sales agreements obtaining necessary partner and government approvals for remaining properties in divestiture package.
 optimistic can complete sales during first half of 2008.
 all west african related revenues , expenses capital reported as discontinued operations in 2008 financial statements.
 all forward-looking estimates discussion exclude amounts related to operations in west africa unless otherwise noted.
 completed several major property acquisitions dispositions in recent years transactions are opportunity driven.
 following forward-looking estimates do not include financial operating effects of potential property acquisitions or divestitures occur during 2008 except for west africa as previously discussed.
 oil , gas and ngl production set below estimates of oil , gas ngl production for 2008.
 estimate combined 2008 oil , gas and ngl production total approximately 240 to 247 mmboe.
 total approximately 92% ( 92 % ) estimated to produced from reserves classified as 201cproved 201d at december 31 , 2007.
 following estimates for oil , gas and ngl production calculated at midpoint of estimated range for total production.
 oil gas ngls total ( mmbbls ) ( bcf ) ( mmbbls ) ( mmboe ).

| oil ( mmbbls ) | gas ( bcf ) | ngls ( mmbbls ) | total ( mmboe )
-------------- | -------------- | ----------- | --------------- | ---------------
u.s . onshore  | 12             | 626         | 23              | 140
u.s . offshore | 8              | 68          | 1               | 20
canada         | 23             | 198         | 4               | 60
international  | 23             | 2           | 2014            | 23
total          | 66             | 894         | 28              | 243


entergy louisiana , inc.
 management's financial discussion analysis results of operations net income 2004 compared to 2003 net income decreased $ 18. 7 million due to lower net revenue  offset by lower operation maintenance expenses.
 2003 compared to 2002 net income increased slightly due to higher net revenue lower interest charges offset by higher operation maintenance expenses  higher depreciation amortization expenses higher taxes other than income taxes.
 net revenue 2004 compared to 2003 net revenue  measure of gross margin consists of operating revenues net of 1 ) fuel , fuel-related  purchased power expenses 2 ) other regulatory credits.
 analysis of change in net revenue comparing 2004 to 2003.
 price applied to unbilled sales variance due to decrease in fuel price included in unbilled sales in 2004 caused by effect of nuclear plant outages in 2003 on average fuel costs.
 deferred fuel cost revisions variance resulted from revised unbilled sales pricing estimate 2003 to align fuel component pricing with recoverable fuel costs.
 rate refund provisions caused decrease in net revenue due to additional provisions recorded in 2004 compared to 2003 for potential rate actions refunds.
 volume/weather variance due to total increase of 620 gwh in weather-adjusted usage in all sectors offset by effect of milder weather on billed sales in residential commercial sectors.
 summer capacity charges variance due to amortization in 2003 of deferred capacity charges for summer of 2001 compared to absence amortization in 2004.
 amortization of these capacity charges began in august 2002 ended in july 2003.

| ( in millions )
------------------------------- | ---------------
2003 net revenue                | $ 973.7
price applied to unbilled sales | -31.9 ( 31.9 )
deferred fuel cost revisions    | -29.4 ( 29.4 )
rate refund provisions          | -12.2 ( 12.2 )
volume/weather                  | 17.0
summer capacity charges         | 11.8
other                           | 2.3
2004 net revenue                | $ 931.3


products software ongoing investment in next-generation technologies offset by savings from cost-reduction initiatives.
 reorganization of business charges increased due to employee severance costs expenses related to exit facility.
 sg&a expenses decreased due to lower marketing expenses savings from cost-reduction initiatives offset by increased expenditures on information technology upgrades.
 percentage of net sales in 2007 compared to 2006 gross margin and operating margin decreased sg&a expenses r&d expenditures increased.
 segment 2019s backlog was $ 647 million at december 31, 2007 compared to $ 1. 4 billion at december 31 , 2006.
 decrease in backlog due to decline in customer demand segment 2019s limited product portfolio.
 segment shipped 159. 1 million units in 2007 27% ( 27 % ) decrease compared to shipments 217. 4 million units in 2006.
 overall decrease reflects decreased unit shipments of products for all technologies.
 for full year 2007 unit shipments decreased in asia and emea decreased in north america increased in latin america.
 unit shipments by segment decreased in 2007 total unit shipments in worldwide handset market increased by approximately 16% ( 16 % ).
 segment estimates worldwide market share was approximately 14% ( 14 % ) for full year 2007 decrease of approximately 8 percentage points versus 2006.
 in 2007 asp decreased approximately 9% ( 9 % ) compared to 2006.
 overall decrease in asp driven by changes in product-tier and geographic mix of sales.
 asp decreased approximately 11% ( 11 % ) in 2006 and 10% ( 10 % ) in 2005.
 segment has large customers throughout world.
 in 2007 aggregate net sales to segment 2019s five largest customers accounted for approximately 42% ( 42 % ) of segment 2019s net sales.
selling directly to carriers operators segment sells products through third-party distributors retailers account for approximately 33% ( 33 % ) of segment 2019s net sales.
 largest distributors was brightstar corporation.
 u. s.
 market segment 2019s largest individual market  many customers  more than 54% ( 54 % ) of segment 2019s 2007 net sales  were outside u. s.
 largest international markets were brazil , china mexico.
 home and networks mobility segment designs  manufactures  sells installs services : digital video , internet protocol video broadcast network interactive set-tops  end-to-end video delivery systems  broadband access infrastructure platforms associated data and voice customer premise equipment to cable television telecom service providers ( referred to as 201chome business 201d ) ii ) wireless access systems  including cellular infrastructure systems wireless broadband systems  to wireless service providers ( 201cnetwork business 201d ).
 in 2008  segment 2019s net sales represented 33% ( 33 % ) of company 2019s consolidated net sales  compared to 27% ( 27 % ) in 2007 21% ( 21 % ) in 2006.
 ( dollars in millions ) 2008 2007 2006 2008 20142007 20142006 years ended december 31 percent change.
 segment results 20142008 compared to 2007 2008 segment 2019s net sales increased 1% ( 1 % ) to $ 10. 1 billion  compared to $ 10. 0 billion in 2007.
 1% ( 1 % ) increase in net sales reflects 16% ( 16 % ) increase in net sales in home business  offset by 11% ( 11 % ) decrease in net sales in networks business.
 16% ( 16 % ) increase in net sales in home business driven by 17% ( 17 % ) increase in net sales of digital entertainment devices  reflecting 19% ( 19 % ) increase in unit shipments to 18.0 million units offset by lower asp due to product mix shift pricing pressure.
 11% ( % ) decrease in net sales in networks business driven by i absence of net sales by embedded communication computing group ( 201cecc 201d ) divested end of 2007 ii lower net sales of iden  gsm cdma infrastructure equipment offset by higher net sales of umts infrastructure equipment.
 geographic basis 1% ( 1 % ) increase in net sales driven by higher net sales in latin america asia partially offset by lower net sales in north america.
 increase in net sales in latin america 63management 2019s discussion analysis of financial condition results of operations %%transmsg*** transmitting job : c49054 pcn : 066000000 ***%pcmsg|63 |00024|yes|no|02/24/2009 12:31|0|0|page valid  no graphics -- color : n|

( dollars in millions ) | years ended december 31 2008 | years ended december 31 2007 | years ended december 31 2006 | years ended december 31 2008 20142007 | 2007 20142006
----------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | ---------------
segment net sales       | $ 10086                      | $ 10014                      | $ 9164                       | 1% ( 1 % )                            | 9% ( 9 % )
operating earnings      | 918                          | 709                          | 787                          | 29% ( 29 % )                          | ( 10 ) % (  % )


descriptions fair value methodologies for u. s.
 international pension plan assets are : cash and cash equivalents carrying amounts cash approximate fair value due to short-term maturity.
 equity securities equity securities valued at closing market price on u. s.
 or international exchange where security actively traded classified as level 1 assets.
 equity mutual and pooled funds shares of mutual funds valued at net asset value ( nav ) of fund classified as level 1 assets.
 units of pooled funds valued at per unit nav determined by fund manager based on value of underlying traded holdings classified as level 2 assets.
 corporate and government bonds corporate government bonds classified as level 2 assets  valued at quoted market prices from observable pricing sources at reporting date or valued based upon comparable securities with similar yields credit ratings.
 other pooled funds pooled funds classified as level 2 assets valued at nav of shares held at year end  based on fair value of underlying investments.
 securities interests classified as level 3 carried at estimated fair value.
 estimated fair value based on fair value of underlying investment values  includes estimated bids from brokers or other third-party vendor sources expected cash flow streams other uncorroborated data including counterparty credit quality default risk  discount rates overall capital market liquidity.
 insurance contracts insurance contracts classified as level 3 assets  carried at contract value  approximates estimated fair value.
 estimated fair value based on fair value of underlying investment of insurance company discount rates require inputs with limited observability.
 contributions and projected benefit payments pension contributions to funded plans benefit payments for unfunded plans for fiscal year 2018 were $ 68. 3.
 contributions for funded plans resulted primarily from contractual and regulatory requirements.
 benefit payments to unfunded plans due to timing of retirements.
 anticipate contributing $ 45 to $ 65 to defined benefit pension plans in fiscal year 2019.
 contributions driven by contractual and regulatory requirements for funded plans and benefit payments for unfunded plans dependent upon timing of retirements.
 projected benefit payments reflect expected future service as follows:.
 estimated benefit payments based on assumptions about future events.
 actual benefit payments may vary significantly from estimates.

| u.s .   | international
--------- | ------- | -------------
2019      | $ 165.5 | $ 52.8
2020      | 152.4   | 53.9
2021      | 157.0   | 55.6
2022      | 163.7   | 56.0
2023      | 167.9   | 60.6
2024-2028 | 900.2   | 336.8


part i item 1.
 business.
 merck & co. , inc.
 ( 201cmerck 201d or 201ccompany 201d ) is a global health care company delivers innovative health solutions through prescription medicines , vaccines  biologic therapies  animal health  consumer care products markets directly and through joint ventures.
 company 2019s operations principally managed on products basis comprised of four operating segments pharmaceutical , animal health  consumer care alliances segments  one reportable segment  pharmaceutical segment.
 pharmaceutical segment includes human health pharmaceutical and vaccine products marketed directly by company or through joint ventures.
 human health pharmaceutical products consist of therapeutic preventive agents  generally sold by prescription for treatment of human disorders.
 company sells products primarily to drug wholesalers retailers  hospitals  government agencies managed health care providers health maintenance organizations  pharmacy benefit managers other institutions.
 vaccine products consist of preventive pediatric , adolescent adult vaccines  primarily administered at physician offices.
 company sells human health vaccines primarily to physicians , wholesalers  physician distributors government entities.
 company has animal health operations discover  develop  manufacture market animal health products  including vaccines sells to veterinarians , distributors animal producers.
 company has consumer care operations develop  manufacture market over-the- counter , foot care sun care products sold through wholesale retail drug , food chain mass merchandiser outlets club stores specialty channels.
 company incorporated in new jersey in for financial information other information about company 2019s segments , see item 7.
 201cmanagement 2019s discussion and analysis of financial condition and results of operations 201d and item 8.
201cfinancial statements supplementary data 201d below.
 all product or service marks in type form different from surrounding text are trademarks service marks owned licensed promoted distributed by merck  subsidiaries affiliates  except noted.
 all other trademarks services marks are respective owners.
 product sales sales of company 2019s top pharmaceutical products  total sales of animal health consumer care products were as follows:.
 other revenues ( 1 ) 1340 1315 1665 ( 1 ) other revenues primarily comprised of alliance revenue  miscellaneous corporate revenues third-party manufacturing sales.
 on october 1 , 2013  company divested substantial portion of third-party manufacturing sales.
 table of contents

( $ in millions )       | 2013    | 2012    | 2011
----------------------- | ------- | ------- | -------
total sales             | $ 44033 | $ 47267 | $ 48047
pharmaceutical          | 37437   | 40601   | 41289
januvia                 | 4004    | 4086    | 3324
zetia                   | 2658    | 2567    | 2428
remicade                | 2271    | 2076    | 2667
gardasil                | 1831    | 1631    | 1209
janumet                 | 1829    | 1659    | 1363
isentress               | 1643    | 1515    | 1359
vytorin                 | 1643    | 1747    | 1882
nasonex                 | 1335    | 1268    | 1286
proquad/m-m-rii/varivax | 1306    | 1273    | 1202
singulair               | 1196    | 3853    | 5479
animal health           | 3362    | 3399    | 3253
consumer care           | 1894    | 1952    | 1840
other revenues ( 1 )    | 1340    | 1315    | 1665


can issue debt securities  preferred stock  common stock warrants  share purchase contracts share purchase units without predetermined limit.
 securities can be sold in one or more separate offerings with size  price terms determined at time of sale.
 emerson 2019s financial structure provides flexibility to achieve strategic objectives.
 company successful in efficiently deploying cash needed worldwide to fund operations complete acquisitions sustain long-term growth.
 at september 30 , 2017 , $ 3. 1 billion of company 2019s cash held outside u. s.
 primarily in europe and asia ) , $ 1. 4 billion income taxes provided for  available for repatriation u.
 under current tax law repatriated cash may be subject to.
 federal income taxes  net of available foreign tax credits.
 company routinely repatriates portion of non-u.
 cash from earnings each year when accomplished tax efficiently provides for u. s.
 income taxes as appropriate.
 company to meet all funding requirements believes sufficient funds will available to meet company 2019s needs foreseeable future through operating cash flow existing resources short- long-term debt capacity backup credit lines.
 contractual obligations at september 30 , 2017  company 2019s contractual obligations  including estimated payments are as follows : amounts due by period less more than 1 2013 3 3 2013 5 than ( dollars in millions ) total 1 year years years 5 years long-term debt ( including interest ) $ 5342 428 1434 966 2514.
 purchase obligations consist primarily of inventory purchases made in normal course of business to meet operational requirements.
 table not include $ 2.0 billion noncurrent liabilities recorded in balance sheet summarized in note 19  consist primarily of pension postretirement plan liabilities deferred income taxes unrecognized tax benefits not certain when amounts become due.
 see notes 11 and 12 for estimated future benefit payments note 14 for additional information on deferred income taxes.
 financial instruments company exposed to market risk related to changes in interest rates foreign currency exchange rates commodity prices selectively uses derivative financial instruments including forwards  swaps purchased options to manage risks.
 company does not hold derivatives for trading or speculative purposes.
 value of derivatives other financial instruments subject to change of market movements in rates prices.
 sensitivity analysis technique to forecast impact of these movements.
 based on hypothetical 10 percent increase in interest rates 10 percent decrease in commodity prices 10 percent weakening in.
 dollar across all currencies potential losses in future earnings fair value cash flows not material.
 sensitivity analysis has limitations ; for weaker.
 dollar would benefit future earnings through favorable translation of non-u.
 operating results lower commodity prices benefit future earnings through lower cost of sales.
 see notes 1 , 8 through 10.
 critical accounting policies preparation of company 2019s financial statements requires management to make judgments  assumptions estimates regarding uncertainties affect reported revenue  expenses assets liabilities equity.
 note 1 describes significant accounting policies used in preparation consolidated financial statements.
 most significant areas where management judgments estimates impact primary financial statements described below.
 actual results in areas could differ materially from management 2019s estimates under different assumptions or conditions.
revenue recognition company recognizes majority revenue through sale of manufactured products records sale when products shipped or delivered title and risk of loss pass to customer collection is reasonably assured.
 in certain circumstances  revenue recognized using percentage-of- completion method  as performance occurs or in accordance with asc 985-605 related to software.
 sales arrangements sometimes involve delivering multiple elements requires management judgment affects amount and timing of revenue recognized.
 in these instances revenue assigned to each element based on vendor-specific objective evidence third-party evidence or management estimate of relative selling price.
 revenue recognized for delivered elements if they have value to customer on stand-alone basis performance related to undelivered items is probable substantially in company 2019s control or undelivered elements are inconsequential or perfunctory no unsatisfied contingencies related to payment.
 majority of deliverables are tangible products smaller portion attributable to installation , service or maintenance.
 management believes all relevant criteria and conditions considered when recognizing revenue.

( dollars in millions )               | amounts due by period total | amounts due by period less than 1 year | amounts due by period 1 - 3years | amounts due by period 3 - 5years | amounts due by period more than5 years
------------------------------------- | --------------------------- | -------------------------------------- | -------------------------------- | -------------------------------- | --------------------------------------
long-term debt ( including interest ) | $ 5342                      | 428                                    | 1434                             | 966                              | 2514
operating leases                      | 536                         | 171                                    | 206                              | 80                               | 79
purchase obligations                  | 746                         | 655                                    | 71                               | 14                               | 6
total                                 | $ 6624                      | 1254                                   | 1711                             | 1060                             | 2599


jpmorgan chase & co. /2009 annual report 181 table shows current credit risk of derivative receivables after netting adjustments , and current liquidity risk of derivative payables after netting adjustments , as of december 31 , 2009.
 in addition to collateral amounts reflected in table above at december 31 , 2009 , firm received and posted liquid secu- rities collateral of $ 15. 5 billion and $ 11. 7 billion , respectively.
 firm also receives and delivers collateral at initiation of derivative transactions , available as security against potential exposure should fair value of transactions move in firm 2019s or client 2019s favor .
 firm and counterparties hold collateral related to contracts non-daily call frequency for collateral posted and collateral firm or counterparty agreed to return but not yet settled as of reporting date.
 at december 31 , 2009  firm received $ 16. 9 billion and delivered $ 5. 8 billion of such additional collateral.
 these amounts not netted against derivative receivables and payables in table above , because at individual counterparty level  collateral exceeded fair value exposure at december 31 , 2009.
 credit derivatives credit derivatives are financial instruments value derived from credit risk associated with debt of third-party issuer ( reference entity ) allow one party ( protection purchaser ) to transfer risk to another party ( protection seller ).
 credit derivatives expose protection purchaser to creditworthiness of protection seller , as protection seller required to make payments under contract when reference entity experiences credit event , bankruptcy , failure to pay obligation or restructuring.
 seller of credit protection receives a premium for providing protection but has risk that underlying instrument referenced in contract will be subject to credit event.
firm is a purchaser and seller of protection in credit derivatives market uses these derivatives for two primary purposes.
 first  in as a market-maker dealer/client business firm risk manages portfolio of credit derivatives by purchasing and selling credit protection  pre- dominantly on corporate debt obligations  to meet needs customers.
 as seller of protection firm 2019s exposure to given reference entity may be offset partially or entirely with a contract to purchase protection from another counterparty on same or similar reference entity.
 second firm uses credit derivatives to mitigate credit risk with overall derivative receivables and traditional commercial credit lending exposures ( loans unfunded commitments ) to manage exposure to residential and commercial mortgages.
 see note 3 on pages 156--- 173 of annual report for further information on firm 2019s mortgage-related exposures.
 firm uses different types of credit derivatives.
 summary of various types of credit derivatives.
 credit default swaps credit derivatives may reference credit of single refer- ence entity ( 201csingle-name 201d ) or broad-based index .
 firm purchases and sells protection on both single- name and index-reference obligations.
 single-name cds and index cds contracts are both otc derivative contracts.
 single- name cds used to manage default risk of single reference entity cds index to manage credit risk with broader credit markets or credit market segments.
 like s&p 500 other market indices cds index is comprised of portfolio of cds across many reference entities.
 new series of cds indices are established every six months with new portfolio of reference entities to reflect changes in credit markets.
 if one reference entities in index experi- ences a credit event reference entity defaulted is removed from index.
cds can be referenced against spe- cific portfolios of reference names or against customized exposure levels based on specific client demands : for example , to provide protection against first $ 1 million realized credit losses in a $ 10 million portfolio of exposure.
 such structures are known as tranche cds.
 for both single-name cds contracts and index cds , upon occurrence of credit event , under terms cds contract neither party to cds contract has recourse to reference entity.
 protection purchaser has recourse to protection seller for difference between face value of cds contract and fair value of reference obligation at time settling credit derivative contract , also known as recovery value.
 protection purchaser does not need to hold debt instrument of underlying reference entity in to receive amounts due under cds contract when credit event occurs.
 credit-linked notes credit linked note ( 201ccln 201d ) is a funded credit derivative where issuer cln purchases credit protection on referenced entity from note investor.
 under contract investor pays issuer par value of note at inception transaction , and in return issuer pays periodic payments to investor  based on credit risk of referenced entity.
 issuer also repays investor par value of note at maturity unless reference entity experiences specified credit event.
 in event issuer not obligated to repay par value of note  but issuer pays investor difference between par value of the note

december 31 2009 ( in millions )                       | derivative receivables | derivative payables
------------------------------------------------------ | ---------------------- | --------------------
gross derivative fair value                            | $ 1565518              | $ 1519183
nettingadjustment 2013 offsetting receivables/payables | -1419840 ( 1419840 )   | -1419840 ( 1419840 )
nettingadjustment 2013 cash collateral received/paid   | -65468 ( 65468 )       | -39218 ( 39218 )
carrying value on consolidated balance sheets          | $ 80210                | $ 60125


aes corporation notes to consolidated financial statements 2014 continued ) december 31 , 2011  2010  2009 may require government to acquire ownership interest current expectation of future losses.
 evaluation indicated long-lived assets no longer recoverable written down to estimated fair value of $ 24 million based on discounted cash flow analysis.
 long-lived assets had carrying amount $ 66 million prior to recognition of asset impairment expense.
 kelanitissa is a build- operate-transfer ( bot ) generation facility payments under ppa scheduled to decline over ppa term.
 possible further impairment charges may be required future as kelanitissa gets closer to bot date.
 kelanitissa reported in asia generation reportable segment.
 asset impairment expense for year ended december 31 , 2010 consisted of : ( in millions ).
 southland 2014in september 2010  new environmental policy on use ocean water to cool generation facilities issued in california requires generation plants to comply with policy by december 31 , 2020 require significant capital expenditure or plants 2019 shutdown.
 company 2019s huntington beach gas-fired generation facility in california part of aes 2019 southland business  impacted by new policy.
 company performed asset impairment test determined fair value of asset group using discounted cash flow analysis.
 carrying value of asset group of $ 288 million exceeded fair value of $ 88 million in recognition of asset impairment expense of $ 200 million for year ended december 31 , 2010.
 southland reported in north america generation reportable segment.
 third quarter of 2010  company entered into annual negotiations with offtaker of tisza ii.
result of preliminary negotiations , further deterioration of economic environment in hungary , company determined indicator of impairment existed at september 30 , 2010.
 company performed asset impairment test determined based on undiscounted cash flow analysis, carrying amount of tisza ii asset group not recoverable.
 fair value of asset group determined using discounted cash flow analysis.
 carrying value of tisza ii asset group of $ 160 million exceeded fair value of $ 75 million resulting in recognition of asset impairment expense of $ 85 million during year ended december 31 , 2010.
 deepwater 2014in 2010 , deepwater , our 160 mw petcoke-fired merchant power plant in texas , experienced deteriorating market conditions due to increasing petcoke prices and diminishing power prices.
 deepwater incurred operating losses and shut down from to avoid negative operating margin.
 in fourth quarter of 2010 , management concluded on undiscounted cash flow basis carrying amount of asset group was no longer recoverable.
 fair value of deepwater determined using discounted cash flow analysis and $ 79 million of impairment expense recognized.
 deepwater reported in north america generation reportable segment.

| 2010 ( in millions )
------------------------------ | --------------------
southland ( huntington beach ) | $ 200
tisza ii                       | 85
deepwater                      | 79
other                          | 25
total                          | $ 389


schedule iii page 6 of 6 host hotels & resorts , inc. , subsidiaries l. p. subsidiaries real estate accumulated depreciation december 31, 2018 ( in millions ) b change in accumulated depreciation and amortization of real estate assets for fiscal years ended december 31 , 2018 , 2017 2016 as follows:.
 c aggregate cost of real estate for federal income tax purposes approximately $ 10458 million at december 31 , 2018.
 d total cost of properties excludes construction-in-progress properties.

balance at december 31 2015          | $ 5666
------------------------------------ | ------------
depreciation and amortization        | 572
dispositions and other               | -159 ( 159 )
depreciation on assets held for sale | -130 ( 130 )
balance at december 31 2016          | 5949
depreciation and amortization        | 563
dispositions and other               | -247 ( 247 )
depreciation on assets held for sale | 7
balance at december 31 2017          | 6272
depreciation and amortization        | 546
dispositions and other               | -344 ( 344 )
depreciation on assets held for sale | -101 ( 101 )
balance at december 31 2018          | $ 6373


news corporation notes to consolidated financial statements consideration transferred over fair value of net tangible and intangible assets acquired recorded as goodwill.
 allocation as follows ( in millions ) : assets acquired:.
 acquired intangible assets relate to license of realtor. com ae trademark  fair value of approximately $ 116 million and indefinite life , customer relationships , other tradenames multiple listing service agreements with aggregate fair value of approximately $ 100 million amortized over weighted-average useful life of approximately 15 years.
 company acquired technology  primarily associated with realtor. com ae website  fair value of approximately $ 39 million amortized over 4 years.
 acquired technology recorded in property , plant and equipment  net in consolidated balance sheets as of date of acquisition.
 move.
 federal net operating loss carryforwards ( 201cnols 201d ) of $ 947 million ( $ 332 million tax-effected ) at date of acquisition.
 nols subject to limitations as promulgated under section 382 of internal revenue code of 1986  amended 201d.
 section 382 code limits amount of acquired nols can use annual basis to offset future.
 consolidated taxable income.
 valuation allowances and unrecognized tax benefits recorded against these nols in amount of $ 484 million ( $ 170 million tax- effected ) as part of purchase price allocation.
 company expected approximately $ 463 million of nols could be utilized recorded net deferred tax asset of $ 162 million as part of purchase price allocation.
 result of management 2019s plan to dispose of digital education business  company increased estimated utilization of move 2019s nols by $ 167 million ( $ 58 million tax-effected ) released valuation allowances equal to that amount.
filing fiscal 2015 federal income tax return company reduced move 2019s nols by $ 298 million amount expected to expire unutilized due to section 382 limitation.
 as of june 30 , 2016  remaining move nols expected to utilized are $ 573 million ( $ 201 million tax-effected ).
 utilization nols dependent on generating sufficient u. s.
 taxable income prior to expiration begins starting in 2021.
 deferred tax assets established for move 2019s nols  net of valuation allowance unrecognized tax benefits included in non- current deferred tax assets on balance sheets.

cash                          | $ 108
----------------------------- | ------
other current assets          | 28
intangible assets             | 216
deferred income taxes         | 153
goodwill                      | 552
other non-current assets      | 69
total assets acquired         | $ 1126
liabilities assumed:          |
current liabilities           | $ 50
deferred income taxes         | 52
borrowings                    | 129
other non-current liabilities | 3
total liabilities assumed     | 234
net assets acquired           | $ 892


consolidated income statement review presented in item 8 report.
 net income for 2012 was $ 3. 0 billion compared with $ 3. 1 billion for 2011.
 revenue growth of 8 percent decline in provision for credit losses offset by 16 percent increase in noninterest expense in 2012 compared to 2011.
 further detail included in net interest income  noninterest income provision for credit losses noninterest expense portions of statement review.
 net interest income table 2 : net interest income net interest margin year ended december 31 dollars in millions 2012 2011.
 changes in net interest income margin result from interaction volume composition of interest-earning assets related yields interest-bearing liabilities related rates paid noninterest-bearing sources of funding.
 see statistical information 2013 average consolidated balance sheet net interest analysis analysis of year-to-year changes in net interest income in item 8 report discussion of purchase accounting accretion of purchased impaired loans in consolidated balance sheet review item 7 for.
 increase in net interest income in 2012 compared with 2011 due to impact rbc bank ( usa ) acquisition  organic loan growth lower funding costs.
 purchase accounting accretion remained stable at $ 1. 1 billion in both periods.
 net interest margin was 3. 94% ( 3. 94 % ) for 2012 and 3. 92% ( 3. 92 % ) for 2011.
 increase in comparison due to decrease in weighted-average rate accrued on total interest- bearing liabilities of 29 basis points offset by 21 basis point decrease on yield on total interest-earning assets.
 decrease in rate on interest-bearing liabilities due to runoff of maturing retail certificates of deposit redemption of additional trust preferred and hybrid capital securities during 2012 increase in fhlb borrowings and commercial paper as lower-cost funding sources.
decrease in yield on interest-earning assets due to lower rates new loan volume lower yields on new securities in current low rate environment.
 first quarter 2013 expect net interest income to decline by two to three percent compared to fourth quarter 2012 net interest income $ 2. 4 billion  due to decrease in purchase accounting accretion up to $ 50 to $ 60 million including lower expected cash recoveries.
 full year 2013 expect net interest income to decrease compared with 2012 expected decline in purchase accounting accretion of approximately $ 400 million core net interest income expected to increase year-over-year comparison.
 believe net interest margin under pressure in 2013 due to expected decline in purchase accounting accretion current low rate environment continues.
 noninterest income totaled $ 5. 9 billion for 2012 $ 5. 6 billion for 2011.
 overall increase due to increase in residential mortgage loan sales revenue by higher loan origination volume gains on sales of visa class b common shares higher corporate service fees offset by higher provision for residential mortgage repurchase obligations.
 asset management revenue  including blackrock  totaled $ 1. 2 billion in 2012 compared with $ 1. 1 billion 2011.
 increase due to higher earnings from blackrock investment.
 discretionary assets under management increased to $ 112 billion at december 31 , 2012 compared with $ 107 billion 2011 stronger average equity markets positive net flows strong sales performance.
 2012 consumer services fees were $ 1. 1 billion compared with $ 1. 2 billion in 2011.
 decline reflected regulatory impact of lower interchange fees on debit card transactions offset by customer growth.
discussed in retail banking business segments review section item 7  dodd-frank limits on interchange rates effective october 1 , 2011 negative impact on revenue $ 314 million in 2012 $ 75 million in 2011.
 impact partially offset by higher volumes merchant customer credit card debit card transactions impact rbc bank ( usa ) acquisition.
 corporate services revenue increased by $. 3 billion  or 30 percent to $ 1. 2 billion in 2012 compared with $. 9 billion in 2011 due to higher commercial mortgage servicing revenue higher merger and acquisition advisory fees 2012.
 major components of corporate services revenue are treasury management revenue  corporate finance fees  revenue capital markets-related products services commercial mortgage servicing revenue  commercial mortgage banking activities.
 see product revenue portion consolidated income statement review for detail.
 pnc financial services group , inc.
 2013 form 10-k 39

year ended december 31dollars in millions | 2012             | 2011
----------------------------------------- | ---------------- | ----------------
net interest income                       | $ 9640           | $ 8700
net interest margin                       | 3.94% ( 3.94 % ) | 3.92% ( 3.92 % )


improvements amortized using straight-line method over lesser remaining lease term or estimated useful lives from 1 to 15 years.
 goodwill , purchased intangibles other long-lived assets we review goodwill for impairment annually  or more frequently if facts circumstances warrant review.
 completed annual impairment test in second quarter of fiscal 2011 determined no impairment.
 in fourth quarter of fiscal 2011  changes to business strategy resulted in reduction of forecasted revenue for certain products.
 performed update to goodwill impairment test for enterprise reporting unit determined no impairment.
 goodwill assigned to one or more reporting segments on date of acquisition.
 evaluate goodwill for impairment by comparing fair value of each reporting segments to carrying value  including associated goodwill.
 to determine fair values use market approach based on comparable publicly traded companies in similar lines of businesses and 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 and review them for impairment whenever impairment indicator exists.
 continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets including intangible assets may not be recoverable.
 when such events changes circumstances 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 recognize impairment loss based on excess of carrying amount over fair value of assets.
 not recognize intangible asset impairment charges in fiscal 2011 , 2010 or 2009.
 intangible assets amortized over estimated useful lives of 1 to 13 years.
amortization based on pattern economic benefits of intangible asset consumed.
 weighted average useful lives of intangibles assets was as follows:.
 weighted average useful life ( years ) software development costs capitalization of software development costs for software to be sold , leased  or otherwise 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 economic benefits consumed.
 to date , software development costs incurred between completion of working prototype and general availability of related product not been material.
 internal use software we capitalize costs associated with customized internal-use software systems reached application development stage.
 such capitalized costs include external direct costs in developing or obtaining applications and payroll and payroll-related expenses for employees , directly associated with development of applications.
 capitalization of such costs begins when preliminary project stage complete and ceases at point project substantially complete and ready for intended purpose.
 table of contents adobe systems incorporated notes to consolidated financial statements ( continued )

| weighted averageuseful life ( years )
------------------------------------ | -------------------------------------
purchased technology                 | 6
customer contracts and relationships | 10
trademarks                           | 7
acquired rights to use technology    | 9
localization                         | 1
other intangibles                    | 3


notes to consolidated financial statements 2014 risk-free interest rate based on yield of zero coupon united states treasury security with maturity equal to expected life of option from date of grant.
 assumption on expected volatility based on historical volatility.
 dividend yield assumption calculated using average stock price preceding year and annualized amount of current quarterly dividend.
 based assumptions on expected lives of options on analysis of historical exercise patterns options assumption on future exercise pattern of options.
 restricted stock shares awarded under restricted stock program  issued under 2000 plan and 2005 plan held in escrow released to grantee upon grantee 2019s satisfaction of conditions grantee 2019s restricted stock agreement.
 grant date fair value of restricted stock awards based on quoted fair market value of common stock at award date.
 compensation expense recognized during escrow period award.
 grants of restricted shares subject to forfeiture if grantee leaves employment prior to expiration of restricted period.
 grants of restricted shares vest one year after date of grant with to 25% ( 25 % ) of shares granted additional 25% ( 25 % ) after two years additional 25% ( 25 % ) after three years remaining 25% ( 25 % ) after four years.
 table summarizes changes in non-vested restricted stock awards for years ended may 31 , 2010 and 2009 ( share awards in thousands ) : shares weighted average grant-date fair value.
 weighted average grant-date fair value of share awards granted in year ended may 31 , 2008 was $ 38.
 total fair value of share awards vested during years ended may 31 , 2010 , 2009 and 2008 was $ 12. 4 million , $ 6. 2 million and $ 4. 1 million  respectively.
 recognized compensation expense for restricted stock of $ 12. 1 million , $ 9.0 million , $ 5. 7 million in years ended may 31, 2010 , 2009 and 2008.
 as of may 31 , 2010  $ 21. 1 million total unrecognized compensation cost related to unvested restricted stock awards expected to be recognized over average period 2. 5 years.
 employee stock purchase plan employee stock purchase plan sale of 2. 4 million shares of common stock authorized.
 employees may designate up to $ 25000 or 20% ( 20 % ) of annual compensation for purchase of stock.
 price for shares purchased under plan is 85% ( 85 % ) of market value on last day of quarterly purchase period.
 as of may 31, 2010 , 0. 9 million shares issued under plan 1. 5 million shares reserved for future issuance.

| shares       | weighted average grant-date fair value
------------------------- | ------------ | --------------------------------------
non-vested at may 31 2008 | 518          | $ 39
granted                   | 430          | 43
vested                    | -159 ( 159 ) | 39
forfeited                 | -27 ( 27 )   | 41
non-vested at may 31 2009 | 762          | 42
granted                   | 420          | 42
vested                    | -302 ( 302 ) | 41
forfeited                 | -167 ( 167 ) | 43
non-vested at may 31 2010 | 713          | 42


notes to consolidated financial statements table sets activity related 2005 restructuring plan liabilities.
 ( millions ).
 aon 2019s unpaid restructuring liabilities included in accounts payable and accrued liabilities non-current liabilities in consolidated statements financial position.
 aon corporation

balance at january 1 2005    | $ 2014
---------------------------- | ------------
expensed in 2005             | 141
cash payments in 2005        | -23 ( 23 )
foreign currency revaluation | -2 ( 2 )
balance at december 31 2005  | 116
expensed in 2006             | 155
cash payments in 2006        | -141 ( 141 )
foreign currency revaluation | 4
balance at december 31 2006  | 134
expensed in 2007             | 38
cash payments in 2007        | -110 ( 110 )
foreign currency revaluation | 1
balance at december 31 2007  | $ 63


equity compensation plan information table presents equity securities available for issuance under equity compensation plans as of december 31 , 2015.
 equity compensation plan information plan category number of securities to be issued upon exercise of outstanding options , warrants and rights 1 weighted-average exercise price of outstanding options , warrants and rights 2 number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) b ) c ) equity compensation plans approved by security holders 1424356 $ 33. 90 4281952 equity compensation plans not approved by security holders 3 2014.
 includes grants under huntington ingalls industries , inc.
 2012 long-term incentive stock plan ( "2012 plan" ) approved by stockholders on may 2 , 2012  and huntington ingalls industries , inc.
 2011 long-term incentive stock plan ( "2011 plan" ) approved by sole stockholder prior to spin-off from northrop grumman corporation.
 shares 533397 were subject to stock options and 54191 were stock rights granted under 2011 plan.
 number includes 35553 stock rights , 10279 restricted stock rights, 790936 restricted performance stock rights granted under 2012 plan  assuming target performance achievement.
 2 weighted average exercise price of 533397 outstanding stock options only.
 3 no awards made under plans not approved by security holders.
 item 13.
 certain relationships and related transactions , and director independence information relationships transactions director independence will incorporated by reference to proxy statement for 2016 annual meeting of stockholders filed within 120 days after end of company 2019s fiscal year.
 item 14.
principal accountant fees and services information to principal fees services incorporated herein by reference to proxy statement for our 2016 annual meeting of stockholders , filed within 120 days after end of company 2019s fiscal year.

plan category                                                    | number of securities to be issued upon exercise of outstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-average exercise price of outstanding optionswarrants and rights ( 2 ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securitiesreflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders           | 1424356                                                                                | $ 33.90                                                                         | 4281952
equity compensation plans not approved by security holders ( 3 ) | 2014                                                                                | 2014                                                                            | 2014
total                                                            | 1424356                                                                                | $ 33.90                                                                         | 4281952


2014 , 2013 2012 , netherland , sewell & associates , inc.
 ( "nsai" ) prepared certification of prior year's reserves for alba field.
 nsai summary reports filed as exhibit to annual report on form 10-k.
 members nsai team have multiple years industry experience worked for large international oil and gas companies before joining nsai.
 senior technical advisor has 35 years experience in petroleum geosciences 15 years experience in estimation and evaluation of reserves.
 second team member has 10 years experience in petroleum engineering 5 years experience in estimation and evaluation of reserves.
 both registered professional engineers in texas.
 ryder scott company ( "ryder scott" ) performed audits of prior years' reserves of fields in 2014 , 2013 2012.
 summary reports filed as exhibits to annual report on form 10-k.
 team lead for ryder scott has over 20 years industry experience worked for major international oil and gas company before joining ryder scott.
 member of spe , served on oil and gas reserves committee registered professional engineer in texas.
 changes in proved undeveloped reserves as of december 31 , 2014 , 728 mmboe of proved undeveloped reserves reported increase of 101 mmboe from december 31 , 2013.
 following table shows changes in total proved undeveloped reserves for 2014 : ( mmboe ).
 significant additions to proved undeveloped reserves during 2014 included 121 mmboe in eagle ford 61 mmboe in bakken shale plays due to development drilling.
 transfers from proved undeveloped to proved developed reserves included 67 mmboe in eagle ford , 26 mmboe in bakken 1 mmboe in oklahoma resource basins due to development drilling completions.
costs incurred in 2014 , 2013 2012 to development of proved undeveloped reserves  were $ 3149 million , $ 2536 million $ 1995 million.
 total of 102 mmboe booked as extensions  discoveries additions due to application of reliable technology.
 technologies included statistical analysis of production performance  decline curve analysis  pressure rate transient analysis  reservoir simulation volumetric analysis.
 statistical nature production performance with certain reservoir continuity quality within reliable technology areas sufficient proved undeveloped locations establish reasonable certainty criteria for booking proved reserves.
 projects can remain in proved undeveloped reserves for extended periods in certain situations large development projects more than five years to complete or timing of when additional gas compression needed.
 of 728 mmboe of proved undeveloped reserves at december 31 , 2014, 19 percent of volume associated with projects included in proved reserves for more than five years.
 majority of volume related to compression project in e. g.
 sanctioned by board of directors in 2004.
 timing of installation of compression driven by reservoir performance project intended to maintain maximum production levels.
 performance of field since project exceeded expectations.
 estimates of initial dry gas in place increased by roughly 10 percent between 2004 and 2010.
 during 2012  compression project received approval of e. g.
 government  design planning work to progress towards implementation completion expected by mid-2016.
 other component of alba proved undeveloped reserves is infill well approved in 2013 to be drilled in second quarter of 2015.
 proved undeveloped reserves for north gialo development  in libyan sahara desert  booked for first time in 2010.
 this development  anticipated to take more than five years to develop executed by operator encompasses multi-year drilling program including design , fabrication installation of extensive liquid handling and gas recycling facilities.
anecdotal evidence from similar development projects in region lead to expected project execution time frame more than five years from reserves initially booked.
 interruptions civil unrest in 2011 third-party labor strikes civil unrest in 2013-2014 extended project duration.
 as of december 31 , 2014  future development costs estimated required for development of undeveloped crude oil condensate  ngls  natural gas synthetic crude oil reserves related to operations for years 2015 through 2019 projected to be $ 2915 million , $ 2598 million  $ 2493 million  $ 2669 million $ 2745 million.

beginning of year                          | 627
------------------------------------------ | ------------
revisions of previous estimates            | 1
improved recovery                          | 1
purchases of reserves in place             | 4
extensions discoveries and other additions | 227
dispositions                               | -29 ( 29 )
transfers to proved developed              | -103 ( 103 )
end of year                                | 728


pnc financial services group , inc.
 2013 form 10-k 65 liquidity and capital management liquidity risk has two fundamental components.
 first is potential loss assuming unable to meet funding requirements at reasonable cost.
 second is potential inability to operate businesses because adequate contingent liquidity not available.
 we manage liquidity risk at consolidated company level ( bank , parent company and nonbank subsidiaries combined ) to ensure obtain cost-effective funding to meet current and future obligations under normal 201cbusiness as usual 201d and stressful circumstances  to ensure maintain appropriate level of contingent liquidity.
 management monitors liquidity through early warning indicators indicate potential market , or pnc-specific  liquidity stress event.
 management performs liquidity stress tests over multiple time horizons with varying levels of severity and maintains contingency funding plan to address potential liquidity stress event.
 in most severe liquidity stress simulation  assume liquidity position is under pressure  market is under systemic pressure.
 simulation considers impact of restricted access to secured and unsecured external sources of funding  accelerated run-off of customer deposits  valuation pressure on assets heavy demand to fund committed obligations.
 parent company liquidity guidelines designed to ensure sufficient liquidity available to meet parent company obligations over succeeding 24-month period.
 liquidity-related risk limits are established within enterprise liquidity management policy and supporting policies.
 management committees  including asset and liability committee  and board of directors and risk committee regularly review compliance with key established limits.
 in addition to liquidity monitoring measures tools we monitor liquidity by reference to liquidity coverage ratio ( lcr ) described in supervision and regulation section in item 1 of this report.
pnc and pnc bank calculate lcr daily as of december 31, 2018  lcr for exceeded fully phased-in requirement of 100% ( % ).
 provide additional information regarding regulatory liquidity requirements potential impact in supervision and regulation section of item 1 business and item 1a risk factors of this report.
 sources of liquidity largest source of liquidity is customer deposit base by banking businesses.
 these deposits provide stable low-cost funding.
 total deposits increased to $ 267. 8 billion at december 31 , 2018 from $ 265. 1 billion at december 31, 2017 driven by growth in interest-bearing deposits offset by decrease in noninterest-bearing deposits.
 see funding sources section of consolidated balance sheet review report for additional information related to deposits.
 certain assets determined liquid unused borrowing capacity from sources available to manage liquidity position.
 at december 31 , 2018  liquid assets consisted of short-term investments ( federal funds sold  resale agreements trading securities interest-earning deposits with banks ) totaling $ 22. 1 billion securities available for sale totaling $ 63. 4 billion.
 level of liquid assets fluctuates over time based on factors market conditions loan and deposit growth balance sheet management activities.
 liquid assets included $ 2. 7 billion of securities available for sale and trading securities pledged as collateral to secure public and trust deposits repurchase agreements for other purposes.
 $ 4. 9 billion of securities held to maturity also pledged as collateral for purposes.
 obtain liquidity through various forms of funding including long-term debt ( senior notes  subordinated debt fhlb borrowings ) and short-term borrowings ( securities sold under repurchase agreements commercial paper other short-term borrowings.
see note 10 borrowed funds funding sources section consolidated balance sheet review report for additional information related to borrowings.
 total senior and subordinated debt  consolidated basis decreased due to following activity : table 24 : senior subordinated debt.

in billions          | 2018
-------------------- | ------------
january 1            | $ 33.3
issuances            | 4.5
calls and maturities | -6.8 ( 6.8 )
other                | -.1 ( .1 )
december 31          | $ 30.9


credit commitments lines of credit table below summarizes citigroup 2019s credit commitments : in millions of dollars u. s.
 outside u. s.
 december 31 , december 31.
 majority of unused commitments contingent upon customers maintaining specific credit standards.
 commercial commitments have floating interest rates fixed expiration dates may require payment of fees.
 such fees ( net of certain direct costs ) are deferred  upon exercise commitment , amortized over life of loan or if exercise deemed remote , amortized over commitment period.
 commercial and similar letters of credit commercial letter of credit is instrument citigroup substitutes its credit for customer to enable customer finance purchase of goods or incur other commitments.
 citigroup issues letter on behalf of client to supplier agrees to pay supplier upon presentation of documentary evidence supplier performed in accordance with terms of letter of credit.
 when letter of credit drawn, customer required to reimburse citigroup.
 one- to four-family residential mortgages one- to four-family residential mortgage commitment is written confirmation from citigroup to seller of property that bank will advance specified sums enabling buyer to complete purchase.
 revolving open-end loans secured by one- to four-family residential properties revolving-end loans secured properties are essentially home equity lines of credit.
 home equity line of credit is loan secured by primary residence or second home to extent of excess of fair market value over debt outstanding for first mortgage.
 commercial real estate , construction and land development commercial real estate  construction land development include unused portions of commitments to extend credit for financing commercial and multifamily residential properties land development projects.
 both secured-by-real-estate and unsecured commitments included in this line, undistributed loan proceeds , obligation to advance for construction progress payments.
line includes extensions of credit once funded classified as total loans net on consolidated balance sheet.
 credit card lines citigroup provides credit to customers by issuing credit cards.
 credit card lines cancelable by notice to cardholder or without notice as permitted by local law.
 commercial and other consumer loan commitments commitments include overdraft liquidity facilities commercial commitments to make or purchase loans purchase third-party receivables provide note issuance or revolving underwriting facilities invest in equity.
 other commitments and contingencies commitments contingencies include committed or unsettled regular-way reverse repurchase agreements other transactions related to commitments contingencies not reported on lines above.
 unsettled reverse repurchase and securities lending agreements unsettled repurchase and securities borrowing agreements in normal business citigroup enters into reverse repurchase and securities borrowing agreements repurchase securities lending agreements settle at future date.
 at december 31 , 2018  and 2017  citigroup had $ 36. 1 billion and $ 35. 0 billion unsettled reverse repurchase and securities borrowing agreements $ 30. 7 billion and $ 19. 1 billion unsettled repurchase and securities lending agreements , respectively.
 for further discussion of securities purchased under agreements to resell and securities borrowed securities sold under agreements to repurchase and securities loaned  including company 2019s policy for offsetting repurchase and reverse repurchase agreements , see note 11 to consolidated financial statements.

in millions of dollars                                                         | u.s .    | outside ofu.s . | december 312018 | december 31 2017
------------------------------------------------------------------------------ | -------- | --------------- | --------------- | ----------------
commercial and similar letters of credit                                       | $ 823    | $ 4638          | $ 5461          | $ 5000
one- to four-family residential mortgages                                      | 1056     | 1615            | 2671            | 2674
revolving open-end loans secured by one- to four-family residential properties | 10019    | 1355            | 11374           | 12323
commercial real estate construction and land development                       | 9565     | 1728            | 11293           | 11151
credit card lines                                                              | 605857   | 90150           | 696007          | 678300
commercial and other consumer loan commitments                                 | 185849   | 102918          | 288767          | 272655
other commitments and contingencies                                            | 2560     | 761             | 3321            | 3071
total                                                                          | $ 815729 | $ 203165        | $ 1018894       | $ 985174


mastercard incorporated notes to consolidated financial statements 2014 ( continued ) ( in thousands except percent and per share data ) note 17.
 commitments at december 31 , 2008  company had future minimum payments due under non-cancelable agreements : capital leases operating leases sponsorship  licensing &.
 included in table are capital leases with imputed interest expense of $ 9483 net present value of minimum lease payments of $ 42343.
 at december 31 , 2008  $ 92300 of future minimum payments in table for leases  sponsorship  licensing other agreements accrued.
 consolidated rental expense for company 2019s office space  recognized on straight line basis over life of lease was approximately $ 42905 , $ 35614 $ 31467 for years ended december 31 , 2008  2007 2006 .
 consolidated lease expense for automobiles  computer equipment office equipment was $ 7694 , $ 7679 $ 8419 for years ended december 31  2008  2007 2006.
 in january 2003 mastercard purchased building in kansas city , missouri for approximately $ 23572.
 building is co-processing data center replaced back-up data center in lake success , new york.
 during 2003  mastercard entered agreements with city of kansas city for sale-leaseback of building and related equipment totaled $ 36382 purchase of municipal bonds for same amount classified municipal bonds held-to-maturity.
 agreements enabled mastercard to secure state and local financial benefits.
 no gain or loss recorded in connection with agreements.
 leaseback accounted for as capital lease agreement contains bargain purchase option at end of ten-year lease term on april 1 , 2013.
building and related equipment depreciated over estimated economic life in accordance with company 2019s policy.
 rent of $ 1819 due annually equal to interest due on municipal bonds.
 future minimum lease payments are $ 45781 included in table above.
 portion of building subleased to original building owner for five-year term with renewal option.
 as of december 31 , 2008  future minimum sublease rental income is $ 4416.
 note 18.
 obligations under litigation settlements on october 27, 2008  mastercard and visa inc.
 ( 201cvisa 201d ) entered settlement agreement ( 201cdiscover settlement 201d ) with discover financial services , inc.
 ( 201cdiscover 201d ) relating to.
 federal antitrust litigation amongst parties.
 discover settlement ended all litigation parties for total of $ 2750000.
 in july 2008  mastercard and visa entered judgment sharing agreement allocated responsibility for any judgment or settlement of discover action between parties.
 mastercard share of discover settlement was $ 862500  paid to discover in november 2008.
 connection with discover settlement morgan stanley , discover 2019s former parent company , paid mastercard $ 35000 in november 2008  separate agreement.
 net impact of $ 827500 included in litigation settlements for year ended december 31 , 2008.

| total    | capital leases | operating leases | sponsorship licensing & other
---------- | -------- | -------------- | ---------------- | -----------------------------
2009       | $ 372320 | $ 8435         | $ 40327          | $ 323558
2010       | 140659   | 2758           | 18403            | 119498
2011       | 80823    | 1978           | 11555            | 67290
2012       | 50099    | 1819           | 9271             | 39009
2013       | 50012    | 36837          | 7062             | 6113
thereafter | 21292    | 2014           | 19380            | 1912
total      | $ 715205 | $ 51827        | $ 105998         | $ 557380


notes to consolidated financial statements 2013 ( continued ) amounts in millions except per share amounts ) guarantees guaranteed certain obligations of subsidiaries relating principally to operating leases and credit facilities subsidiaries.
 amount of parent company guarantees on lease obligations was $ 410. 3 and $ 385. 1 as of december 31 , 2012 and 2011  respectively parent company guarantees relating to credit facilities was $ 283. 4 and $ 327. 5 as of december 31 , 2012 and 2011 .
 event of non-payment by applicable subsidiary of obligations covered by guarantee we obligated to pay amounts covered by guarantee.
 as of december 31, 2012 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.
 certain redeemable noncontrolling interests exercisable at discretion of noncontrolling equity owners as of december 31 , 2012.
 estimated payments of $ 16. 4 included within total payments expected in 2013 continue to carried forward into 2014 or beyond until exercised or expired.
 redeemable noncontrolling interests included in table at current exercise price payable in cash not at applicable redemption value authoritative guidance for classification and measurement of redeemable securities.
 estimated amounts listed paid in event of exercise at earliest exercise date.
 see note 6 for further information payment structure of acquisitions.
 all payments contingent upon achieving projected operating performance targets and satisfying other conditions in related agreements subject to revisions as earn-out periods progress.
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.
 evaluate all cases each reporting period record liabilities for losses from legal proceedings when determine probable outcome in legal proceeding unfavorable amount  potential range of loss can be reasonably estimated.
 in certain cases  cannot reasonably estimate potential loss because for litigation in early stages.
 any outcome related to litigation or governmental proceedings 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.
 note 15 : recent accounting standards impairment of indefinite-lived intangible assets in july 2012  financial accounting standards board ( 201cfasb 201d ) issued amended guidance to simplify impairment testing of indefinite-lived intangible assets other than goodwill.
 amended guidance permits entity to first assess qualitative factors to determine whether 201cmore likely than not 201d that indefinite-lived intangible asset is impaired.
 if after assessing qualitative factors entity concludes not 201cmore likely than not 201d indefinite-lived intangible

| 2013         | 2014         | 2015         | 2016         | 2017   | thereafter | total
--------------------------------------------------------------------- | ------------ | ------------ | ------------ | ------------ | ------ | ---------- | ------------
deferred acquisition payments                                         | $ 26.0       | $ 12.4       | $ 9.7        | $ 46.4       | $ 18.9 | $ 2.0      | $ 115.4
redeemable noncontrolling interests and call options with affiliates1 | 20.5         | 43.8         | 32.9         | 5.7          | 2.2    | 10.6       | 115.7
total contingent acquisition payments                                 | 46.5         | 56.2         | 42.6         | 52.1         | 21.1   | 12.6       | 231.1
less : cash compensation expense included above                       | -0.7 ( 0.7 ) | -0.6 ( 0.6 ) | -0.8 ( 0.8 ) | -0.2 ( 0.2 ) | 0.0    | 0.0        | -2.3 ( 2.3 )
total                                                                 | $ 45.8       | $ 55.6       | $ 41.8       | $ 51.9       | $ 21.1 | $ 12.6     | $ 228.8


dish network corporation notes to consolidated financial statements - continued 9.
 acquisitions dbsd north america terrestar transactions on march 2 , 2012 , fcc approved transfer of 40 mhz of aws-4 wireless spectrum licenses by dbsd north america and terrestar to us.
 on march 9 , 2012 , completed dbsd transaction and terrestar transaction , acquired  certain satellite assets and wireless spectrum licenses by dbsd north america and terrestar.
 fourth quarter 2011 , we and sprint entered mutual release and settlement agreement ( 201csprint settlement agreement 201d ) all issues disputed relating to dbsd transaction terrestar transaction resolved between us and sprint  including issues relating costs allegedly incurred by sprint to relocate users from spectrum licensed to dbsd north america and terrestar.
 total consideration to acquire dbsd north america terrestar assets was approximately $ 2. 860 billion.
 amount includes $ 1. 364 billion for dbsd transaction , $ 1. 382 billion for terrestar transaction , net payment of $ 114 million to sprint pursuant sprint settlement agreement.
 see note 16 for further information.
 result of acquisitions  recognized acquired assets and assumed liabilities based on estimates of fair value at acquisition date including $ 102 million in uncertain tax position in 201clong-term deferred revenue , distribution and carriage payments other long-term liabilities 201d on consolidated balance sheets.
 in third quarter 2013  uncertain tax position resolved $ 102 million reversed recorded as decrease in 201cincome tax ( provision ) benefit , net 201d on consolidated statements of operations and comprehensive income ( loss ) for year ended december 31 , 2013.
 10.
discontinued operations as of december 31 , 2013  blockbuster ceased all material operations.
 consolidated balance sheets  statements of operations comprehensive income ( loss ) statements of cash flows recast to present blockbuster as discontinued operations for all periods amounts in notes to consolidated financial statements relate only to continuing operations unless otherwise noted.
 during years ended december 31 , 2013 , 2012 2011  revenue from discontinued operations was $ 503 million , $ 1. 085 billion $ 974 million  respectively.
 201cincome loss ) from discontinued operations  before income taxes 201d for same periods was loss of $ 54 million , $ 62 million $ 3 million , respectively.
 201cincome loss ) from discontinued operations  net of tax 201d for same periods loss of $ 47 million , $ 37 million $ 7 million  respectively.
 as of december 31 , 2013  net assets from discontinued operations following : december 31 , 2013 ( in thousands ).

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


equity equity at december 31 , 2014 was $ 6. 6 billion , a decrease of $ 1. 6 billion from december 31  2013.
 decrease due to share repurchases of $ 2. 3 billion , $ 273 million of dividends to shareholders increase in accumulated other comprehensive loss of $ 760 million  partially offset by net income of $ 1. 4 billion.
 $ 760 million increase in accumulated other comprehensive loss from december 31  2013 reflects : 2022 negative net foreign currency translation adjustments of $ 504 million attributable to strengthening of u. s.
 dollar against certain foreign currencies  2022 increase of $ 260 million in net post-retirement benefit obligations  2022 net derivative gains of $ 5 million  2022 net investment losses of $ 1 million.
 review by segment general we serve clients through segments : 2022 risk solutions acts as advisor and insurance and reinsurance broker  helping clients manage risks via consultation negotiation and placement of insurance risk with insurance carriers through global distribution network.
 2022 hr solutions partners with organizations to solve complex benefits , talent financial challenges improve business performance by designing implementing communicating administering human capital , retirement  investment management  health care  compensation talent management strategies.
 risk solutions.
 demand for property and casualty insurance rises as economic activity increases and falls as activity decreases affecting commissions and fees by brokerage business.
 economic activity impacts property and casualty insurance as exposure units closely correlated with employment levels  corporate revenue and asset values.
 during 2014 , pricing was flat on average globally "soft market. " in soft market premium rates flatten or decrease  with commission revenues  due to increased competition for market share among insurance carriers or increased underwriting capacity.
changes in premiums direct potentially material impact on insurance brokerage industry , commission revenues generally based on percentage of premiums paid by insureds.
 additionally , through 2014 , we faced difficult conditions result of continued weakness in global economy , repricing of credit risk deterioration of financial markets.
 weak economic conditions in markets reduced customers' demand for our retail brokerage and reinsurance brokerage products , negative impact on our operational results.
 risk solutions generated approximately 65% ( 65 % ) of our consolidated total revenues in 2014.
 revenues generated primarily through fees paid by clients , commissions and fees paid by insurance and reinsurance companies , investment income on funds held on behalf of clients.
 revenues vary from quarter to quarter year result of timing of clients' policy renewals , net effect of new and lost business , timing of services provided to clients income earn on investments , heavily influenced by short-term interest rates.
 we operate in highly competitive industry compete with many retail insurance brokerage and agency firms  with individual brokers , agents , direct writers of insurance coverage.
 specifically we address highly specialized

years ended december 31 ( millions except percentage data ) | 2014             | 2013             | 2012
----------------------------------------------------------- | ---------------- | ---------------- | ----------------
revenue                                                     | $ 7834           | $ 7789           | $ 7632
operating income                                            | 1648             | 1540             | 1493
operating margin                                            | 21.0% ( 21.0 % ) | 19.8% ( 19.8 % ) | 19.6% ( 19.6 % )


entergy louisiana , llc management's financial discussion analysis net revenue 2008 compared to 2007 revenue consists of operating revenues net of 1 fuel  fuel-related expenses gas purchased for resale  2 ) purchased power expenses 3 ) other regulatory charges.
 analysis of change in net revenue comparing 2008 to 2007.
 amount ( in millions ).
 retail electric price variance due to cessation of interim storm recovery through formula rate plan act 55 financing of storm costs credit passed to customers storm cost financing partially offset by increases in formula rate plan effective october 2007.
 refer to "hurricane rita hurricane katrina" "state and local rate regulation" for discussion interim recovery of storm costs act 55 storm cost financing formula rate plan filing.
 purchased power capacity variance due to amortization of deferred capacity costs effective september 2007 formula rate plan filing may 2007.
 purchased power capacity costs offset in base revenues due to base rate increase to recover incremental deferred ongoing purchased power capacity charges.
 see "state and local rate regulation" for discussion formula rate plan filing.
 net wholesale revenue variance due to provisions for potential rate refunds related to treatment of interruptible load in pricing entergy system affiliate sales.
 gross operating revenue fuel purchased power expenses gross operating revenues increased due to increase of $ 364. 7 million in fuel cost recovery revenues due to higher fuel rates offset by decreased usage.
 increase partially offset by decrease of $ 56. 8 million in gross wholesale revenue due to decrease in system agreement rough production cost equalization credits.
 fuel and purchased power expenses increased due to increases in average market prices of natural gas purchased power partially offset by decrease in recovery from customers of deferred fuel costs.

| amount ( in millions )
------------------------ | ----------------------
2007 net revenue         | $ 991.1
retail electric price    | -17.1 ( 17.1 )
purchased power capacity | -12.0 ( 12.0 )
net wholesale revenue    | -7.4 ( 7.4 )
other                    | 4.6
2008 net revenue         | $ 959.2