amortized over nine-year period beginning december 2015.
 see note 2 to financial statements for discussion of business combination customer credits.
 volume/weather variance due to effect more favorable weather during unbilled period increase in industrial usage offset by effect less favorable weather on residential sales.
 increase in industrial usage primarily due to expansion projects primarily in chemicals industry , increased demand from new customers primarily in industrial gases industry.
 louisiana act 55 financing savings obligation variance results from regulatory charge for tax savings shared with customers per agreement approved by lpsc.
 tax savings resulted from 2010-2011 irs audit settlement on treatment louisiana act 55 financing of storm costs for hurricane gustav and hurricane ike.
 see note 3 to financial statements for discussion of settlement benefit sharing.
 included provision of $ 23 million recorded in 2016 related to settlement of waterford 3 replacement steam generator prudence review proceeding offset by provision of $ 32 million recorded in 2015 related to uncertainty associated with resolution of waterford 3 replacement steam generator prudence review proceeding. see note 2 to financial statements for discussion of waterford 3 replacement steam generator prudence review proceeding.
 entergy wholesale commodities analysis of change in net revenue comparing 2016 to 2015.
 amount ( in millions ).
 table net revenue for entergy wholesale commodities decreased by approximately $ 124 million in 2016 primarily due to : 2022 lower realized wholesale energy prices lower capacity prices , amortization of palisades below- market ppa , vermont yankee capacity revenue.
 effect of amortization palisades below- market ppa vermont yankee capacity revenue on net revenue variance from 2015 to 2016 minimal ; 2022 sale of rhode island state energy center in december 2015.
see note 14 to financial statements for discussion rhode island state energy center sale ; 2022 lower volume in entergy wholesale commodities nuclear fleet more refueling outage days 2016 compared to 2015 larger exercise of resupply options 2016 compared to 2015.
 see 201cnuclear matters - indian point 201d below for discussion extended indian point 2 outage second quarter entergy corporation subsidiaries management 2019s financial discussion analysis

| amount ( in millions )
----------------------------------- | ----------------------
2015 net revenue                    | $ 1666
nuclear realized price changes      | -149 ( 149 )
rhode island state energy center    | -44 ( 44 )
nuclear volume                      | -36 ( 36 )
fitzpatrick reimbursement agreement | 41
nuclear fuel expenses               | 68
other                               | -4 ( 4 )
2016 net revenue                    | $ 1542


2014 , 2013 2012.
 decrease in consolidated net adjustments for 2014 compared to 2013 primarily due to decrease in profit booking rate adjustments at aeronautics , mfc mst business segments.
 increase in consolidated net adjustments for 2013 compared 2012 primarily due to increase in profit booking rate adjustments at mst and mfc business segments increase in favorable resolution of contractual matters for corporation.
 consolidated net adjustments for 2014 inclusive of approximately $ 650 million in unfavorable items include reserves on training logistics solutions programs at mst net warranty reserve adjustments for programs including jassm gmlrs ) at mfc in respective business segment 2019s results operations.
 consolidated net adjustments for 2013 and 2012 inclusive of approximately $ 600 million and $ 500 million in unfavorable items include significant profit reduction on f-35 development contract both years significant profit reduction on c-5 program in 2013 each described in aeronautics business segment 2019s results of operations discussion below.
 aeronautics aeronautics business segment engaged in research  design  development manufacture  integration  sustainment  support upgrade of advanced military aircraft  including combat air mobility aircraft  unmanned air vehicles related technologies.
 aeronautics 2019 major programs include f-35 lightning ii joint strike fighter  c-130 hercules  f-16 fighting falcon  f-22 raptor c-5m super galaxy.
 aeronautics 2019 operating results included ( in millions ) :.
 2014 compared to 2013 aeronautics 2019 net sales for 2014 increased $ 797 million  or 6% ( 6 % )  compared to 2013.
increase attributable to higher net sales $ 790 million for f-35 production contracts due to increased volume sustainment activities ; $ 55 million for f-16 program due to increased deliveries ( 17 aircraft delivered 2014 compared to 13 2013 ) partially offset by contract mix ; $ 45 million for f-22 program due to increased risk retirements.
 increases partially offset by lower net sales $ 55 million for f-35 development contract due to decreased volume offset by absence in 2014 of downward revision to profit booking rate 2013 $ 40 million for c-130 program due to fewer deliveries ( 24 aircraft delivered 2014 compared to 25 2013 ) decreased sustainment activities partially offset by contract mix.
 aeronautics 2019 operating profit for 2014 increased $ 37 million  or 2% ( 2 % )  compared to 2013.
 increase attributable to higher operating profit $ 85 million for f-35 development contract due to absence 2014 of downward revision to profit booking rate 2013 ; $ 75 million for f-22 program due to increased risk retirements ; $ 50 million for c-130 program due to increased risk retirements contract mix partially offset by fewer deliveries $ 25 million for c-5 program due to absence 2014 of downward revisions to profit booking rate 2013.
 increases partially offset by lower operating profit $ 130 million for f-16 program due to decreased risk retirements partially offset by increased deliveries $ 70 million for sustainment activities due to decreased risk retirements volume.
 operating profit comparable for f-35 production contracts higher volume offset by lower risk retirements.
 adjustments not related to volume  including net profit booking rate adjustments other matters approximately $ 105 million lower for 2014 compared to 2013.
 2013 2012 aeronautics 2019 net sales for 2013 decreased $ 830 million  or 6% ( 6 % ) , compared to 2012.
decrease attributable to lower net sales approximately $ 530 million for f-16 program due to fewer aircraft deliveries ( 13 2013 compared to 37 2012 ) partially offset by aircraft configuration mix ; $ 385 million for c-130 program due to fewer aircraft deliveries ( 25 aircraft delivered 2013 34 2012 ) partially offset by increased sustainment activities ; approximately $ 255 million for f-22 program includes $ 205 million due to

| 2014             | 2013             | 2012
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 14920          | $ 14123          | $ 14953
operating profit    | 1649             | 1612             | 1699
operating margins   | 11.1% ( 11.1 % ) | 11.4% ( 11.4 % ) | 11.4% ( 11.4 % )
backlog at year-end | $ 27600          | $ 28000          | $ 30100


troubled debt restructurings ( tdrs ) a tdr is a loan whose terms restructured grants concession to borrower experiencing financial difficulties.
 tdrs typically result from loss mitigation activities include rate reductions  principal forgiveness  postponement/reduction of scheduled amortization extensions bankruptcy discharges where no formal reaffirmation by borrower and concession granted based upon discharge from personal liability  intended to minimize economic loss avoid foreclosure or repossession of collateral.
 in situations where principal is forgiven , amount principal forgiveness is immediately charged some tdrs may not result in full collection of principal and interest  restructured result in potential incremental losses.
 potential incremental losses factored into our overall alll estimate.
 level of subsequent defaults likely affected by future economic conditions.
 once a loan becomes a tdr  it continue to reported as a tdr until it repaid in full, collateral is foreclosed upon or fully charged off.
 held specific reserves in alll of $ 587 million and $ 580 million at december 31 , 2012 and december 31 , 2011  for total tdr portfolio.
 table 71 : summary of troubled debt restructurings in millions dec.
 31.
 31.
 pursuant to regulatory guidance issued in third quarter of 2012 , additional troubled debt restructurings related to changes in treatment of certain loans of $ 366 million in 2012 , net of charge-offs , resulting from bankruptcy where no formal reaffirmation borrower and concession granted based upon discharge from personal liability added to consumer lending population.
 additional tdr population increased nonperforming loans by $ 288 million.
charge-offs taken where fair value less costs to sell collateral was less than recorded investment of loan and were $ 128. 1 million.
 of these nonperforming loans , approximately 78% ( 78 % ) were current on payments at december 31 , 2012.
 ( b ) accruing loans demonstrated period at least six months of performance under restructured terms excluded from nonperforming loans.
 ( c ) includes credit cards and certain small business and consumer credit agreements whose terms restructured and are tdrs.
 policy is to exempt these loans from on nonaccrual status as permitted by regulatory guidance generally these loans are directly charged off in period become 180 days past due, these loans excluded from nonperforming loans.
 following table quantifies number of loans classified as tdrs change in recorded investments as result of tdr classification during years ended december 31 , 2012 and 2011.
 table provides information about types of tdr concessions.
 principal forgiveness tdr category includes principal forgiveness and accrued interest forgiveness.
 these types of tdrs result in write down of recorded investment and charge-off if action not already taken place.
 rate reduction tdr category includes reduced interest rate and interest deferral.
 tdrs within this category result in reductions to future interest income.
 other tdr category includes postponement/reduction of scheduled amortization , contractual extensions.
 in some cases multiple concessions granted on one loan.
 multiple concessions granted principal forgiveness tdr prioritized for determining inclusion in table.
 for example if principal forgiveness in conjunction with lower interest rate and postponement of amortization, type of concession will be reported as principal forgiveness.
 second in priority would be rate reduction.
for example , if interest rate reduction in with postponement of amortization , type of concession reported as rate reduction.
 pnc financial services group , inc.
 2013 form 10-k 155

in millions                  | dec . 312012 | dec . 312011
---------------------------- | ------------ | ------------
total consumer lending ( a ) | $ 2318       | $ 1798
total commercial lending     | 541          | 405
total tdrs                   | $ 2859       | $ 2203
nonperforming                | $ 1589       | $ 1141
accruing ( b )               | 1037         | 771
credit card ( c )            | 233          | 291
total tdrs                   | $ 2859       | $ 2203


item 7a.
 quantitative and qualitative disclosures about market risk ( amounts in millions ) normal course business exposed to market risks related to interest rates foreign currency rates certain balance sheet items.
 use derivative instruments established guidelines policies to manage these risks.
 derivative instruments in hedging activities viewed as risk management tools not used for trading or speculative purposes.
 interest rates exposure to market risk for changes in interest rates relates primarily to fair market value cash flows of debt obligations.
 majority of debt ( approximately 93% ( 93 % ) and 89% ( 89 % ) as of december 31, 2016 and 2015  ) bears interest at fixed rates.
 have debt with variable interest rates 10% ( 10 % ) increase or decrease in interest rates not material to interest expense or cash flows.
 fair market value of debt sensitive to changes in interest rates impact of 10% ( 10 % ) change in interest rates summarized below.
 increase/ ( decrease ) in fair market value as of december 31  10% ( 10 % ) increase interest 10 % ) decrease in interest rates.
 used interest rate swaps for risk management purposes to manage exposure to changes in interest rates.
 any interest rate swaps outstanding as of december 31 , 2016.
 had $ 1100. 6 of cash , cash equivalents marketable securities as of december 31, 2016 generally invest in conservative short-term bank deposits or securities.
 interest income from investments subject to domestic and foreign interest rate movements.
 during 2016 and 2015  had interest income of $ 20. 1 and $ 22. 8 , respectively.
 based on 2016 results a 100 basis-point increase or decrease in interest rates would affect interest income by approximately $ 11. 0  assuming all cash cash equivalents and marketable securities impacted same balances remain constant from year-end 2016 levels.
foreign currency rates subject to translation and transaction risks related to changes in foreign currency exchange rates.
 we report revenues and expenses in u.
 dollars changes in exchange rates may positively or negatively affect our consolidated revenues and expenses ( expressed in.
 dollars ) from foreign operations.
 foreign currencies most impacted our results during 2016 included british pound sterling lesser argentine peso  brazilian real japanese yen.
 based on 2016 exchange rates operating results if u. s.
 dollar to strengthen or weaken by 10% ( 10 % ) estimate operating income would decrease or increase approximately 4% ( 4 % ) assuming all currencies impacted same international revenue and expenses remain constant at 2016 levels.
 functional currency of foreign operations is generally their respective local currency.
 assets and liabilities translated at exchange rates in effect at balance sheet date revenues and expenses translated at average exchange rates during period presented.
 resulting translation adjustments recorded as component of accumulated other comprehensive loss  net of tax in stockholders 2019 equity section of consolidated balance sheets.
 foreign subsidiaries generally collect revenues and pay expenses in their functional currency  mitigating transaction risk.
 certain subsidiaries may enter into transactions in currencies other than functional currency.
 assets and liabilities denominated in currencies other than functional currency susceptible to movements in foreign currency until final settlement.
 currency transaction gains or losses from transactions in currencies other than functional currency included in office and general expenses.
 regularly review foreign exchange exposures may material impact on business use foreign currency forward exchange contracts or other derivative financial instruments to hedge effects of potential adverse fluctuations in foreign currency exchange rates.
 do not enter into foreign exchange contracts or other derivatives for speculative purposes.

as of december 31, | increase/ ( decrease ) in fair market value 10% ( 10 % ) increasein interest rates | increase/ ( decrease ) in fair market value 10% ( 10 % ) decreasein interest rates
------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
2016               | $ -26.3 ( 26.3 )                                                                   | $ 26.9
2015               | -33.7 ( 33.7 )                                                                     | 34.7


federal realty investment trust schedule iii summary of real estate and accumulated depreciation - continued three years ended december 31 , 2011 reconciliation of accumulated depreciation and amortization ( in thousands ) balance , december 31 , 2008.
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2009.
 additions during period 2014depreciation and amortization expense..
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2010.
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2011..
 $ 846258 103698 ( 11869 ) 938087 108261 ( 11144 ) 1035204 114180 ( 21796 ) $ 1127588.
 federal realty investment trust schedule iii summary of real estate and accumulated depreciation - continued three years ended december 31 , 2011 reconciliation of accumulated depreciation and amortization ( in thousands ) balance , december 31 , 2008.
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2009..
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2010.
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property..
 balance , december 31 , 2011.
 $ 846258 103698 ( 11869 ) 938087 108261 ( 11144 ) 1035204 114180 ( 21796 ) $ 1127588

balance december 31 2008                                             | $ 846258
-------------------------------------------------------------------- | ----------------
additions during period 2014depreciation and amortization expense    | 103698
deductions during period 2014disposition and retirements of property | -11869 ( 11869 )
balance december 31 2009                                             | 938087
additions during period 2014depreciation and amortization expense    | 108261
deductions during period 2014disposition and retirements of property | -11144 ( 11144 )
balance december 31 2010                                             | 1035204
additions during period 2014depreciation and amortization expense    | 114180
deductions during period 2014disposition and retirements of property | -21796 ( 21796 )
balance december 31 2011                                             | $ 1127588


table of contents company stock performance graph shows comparison of cumulative total shareholder return calculated on dividend reinvested basis for company  s&p 500 index  dow jones u. s.
 technology supersector index s&p information technology index for five years ended september 27 , 2014.
 company added s&p information technology index to graph to capture stock performance of companies products services relate to company.
 s&p information technology index replaces s&p computer hardware index  no longer tracked by s&p.
 graph assumes $ 100 invested in each company 2019s common stock  s&p 500 index dow jones u. s.
 technology supersector index s&p information technology index as of market close on september 25 , 2009.
 historic stock price performance not necessarily indicative of future stock price performance.
 copyright a9 2014 s&p , division of mcgraw-hill companies inc.
 all rights reserved.
 copyright a9 2014 dow jones & co.
 all rights reserved.
 apple inc.
 2014 form 10-k  23 * $ 100 invested on 9/25/09 in stock or index including reinvestment of dividends.
 data points are last day of each fiscal year for company 2019s common stock and september 30th for indexes.
 september.

| september 2009 | september 2010 | september 2011 | september 2012 | september 2013 | september 2014
-------------------------------------------- | -------------- | -------------- | -------------- | -------------- | -------------- | --------------
apple inc .                                  | $ 100          | $ 160          | $ 222          | $ 367          | $ 272          | $ 407
s&p 500 index                                | $ 100          | $ 110          | $ 111          | $ 145          | $ 173          | $ 207
dow jones u.s . technology supersector index | $ 100          | $ 112          | $ 115          | $ 150          | $ 158          | $ 205
s&p information technology index             | $ 100          | $ 111          | $ 115          | $ 152          | $ 163          | $ 210


impact on service cost and interest cost components of net periodic benefit costs for a 1% ( 1 % ) change in assumed health care trend rate.
 for most participants in u. s.
 plan  aon 2019s liability for future plan cost increases for pre-65 and medical supplement plan coverage limited to 5% ( 5 % ) per annum.
 cap net employer trend rates for these plans limited to 5% ( 5 % ) per year in future.
 during 2007 , aon recognized plan amendment phases out post-65 retiree coverage in u. s.
 plan over next three years.
 impact of amendment on net periodic benefit cost recognized over average remaining service life of employees.
 14.
 stock compensation plans table summarizes stock-based compensation expense in continuing operations in consolidated statements of income in compensation and benefits ( in millions ) :.
 2009  company converted stock administration system to new service provider.
 reconciliation of methodologies and estimates performed resulted in $ 12 million reduction of expense for year ended december 31 , 2009.
 stock awards stock awards  in form of rsus granted to certain employees consist of performance-based and service-based rsus.
 service-based awards vest between three and ten years from date of grant.
 fair value of service awards based upon market value of underlying common stock at date of grant.
 break in continuous employment forfeiture of all unvested awards.
 compensation expense associated with stock awards recognized over service period.
 dividend equivalents paid on certain service-based rsus  based on initial grant amount.
 performance-based rsus granted to certain employees.
 vesting of awards contingent upon meeting individual divisional company-wide performance conditions  including revenue generation or growth in revenue  pretax income or earnings per share over one- to five-year period.
 performance conditions not considered in grant date fair value for awards.
 fair value of performance-based awards based upon market price of underlying common stock at date of grant.
 compensation expense recognized over performance period  in certain cases additional vesting period  based on management 2019s estimate of number of units expected to vest.
 compensation expense adjusted to reflect actual number of shares paid out at end of programs.
 actual payout of shares under performance- based plans may range from 0-200% ) of number of units granted based on plan.
 dividend equivalents generally not paid on performance-based rsus.
 during 2010 , company granted approximately 1. 6 million shares in with completion 2007 leadership performance plan ( 2018 2018lpp 2019 ) cycle and 84000 shares related to other performance plans.
 during 2010 , 2009 and 2008, company granted approximately 3. 5 million

years ended december 31                     | 2010  | 2009  | 2008
------------------------------------------- | ----- | ----- | -----
rsus                                        | $ 138 | $ 124 | $ 132
performance plans                           | 62    | 60    | 67
stock options                               | 17    | 21    | 24
employee stock purchase plans               | 4     | 4     | 3
total stock-based compensation expense      | 221   | 209   | 226
tax benefit                                 | 75    | 68    | 82
stock-based compensation expense net of tax | $ 146 | $ 141 | $ 144


period.
 discount reflects our incremental borrowing rate  matches lifetime of liability.
 significant changes in discount rate or estimations of sublease income in leases could impact amounts recorded.
 other associated costs with restructuring activities recognize other costs associated with restructuring activities as incurred including moving costs consulting and legal fees.
 pensions sponsor defined benefit pension plans throughout world.
 most significant plans located in u. s. , u. k. , netherlands and canada.
 significant u. s. , u. k.
 and canadian pension plans closed to new entrants.
 ceased crediting future benefits relating to salary and service for u. s. , u. k.
 canadian plans.
 recognition of gains and losses prior service certain changes in value of obligation and value of plan assets  occur due to various factors changes in discount rate actuarial assumptions, actual demographic experience/or plan asset performance not immediately recognized in net income.
 such changes recognized in other comprehensive income amortized into net income as part of net periodic benefit cost.
 unrecognized gains and losses deferred in other comprehensive income  amortized into compensation and benefits expense as component of periodic pension expense based on average expected future service of active employees for plans in netherlands and canada or average life expectancy of u. s.
 and u. k.
 plan members.
 after effective date of plan amendments to cease crediting future benefits relating to service  unrecognized gains and losses based on average life expectancy of members in canadian plans.
 amortize any prior service expense or credits as result of plan changes over period consistent with amortization of gains and losses.
as of december 31 , 2013  our pension plans have deferred losses not recognized through income in consolidated financial statements.
 we amortize unrecognized actuarial losses outside of corridor defined as 10% ( 10 % ) of greater of market-related value of plan assets or projected benefit obligation.
 not offset by future gains incremental amortization as calculated will to affect future pension expense until fully amortized.
 following table discloses our combined experience loss , number of years over amortizing experience loss estimated 2014 amortization of loss by country ( amounts in millions ) :.
 unrecognized prior service cost at december 31, 2013 was $ 27 million.
 plans.
 for.
 pension plans we use market-related valuation of assets approach to determine expected return on assets component of net periodic benefit cost recognized in consolidated statements of income.
 this approach recognizes 20% ( 20 % ) of gains or losses in current year's value of market-related assets remaining 80% ( 80 % ) spread over next four years.
 approach recognizes gains or losses over five-year period future value of assets and net periodic benefit cost impacted as previously deferred gains or losses are recorded.
 as of december 31 , 2013  market-related value of assets was $ 1. 8 billion.
 not use market-related valuation approach to determine funded status of.
 plans recorded in consolidated statements of financial position.
 instead we record and present funded status in consolidated statements of financial position based on fair value of plan assets.
 as of december 31 , 2013  fair value of plan assets was $ 1. 9 billion.
 non-u. s.
 plans use fair value to determine expected return on assets.

| u.k .  | u.s .  | other
----------------------------------- | ------ | ------ | -------
combined experience loss            | $ 2012 | $ 1219 | $ 402
amortization period ( in years )    | 29     | 26     | 11 - 23
estimated 2014 amortization of loss | $ 53   | $ 44   | $ 10


record inventory obsolescence reserve  represents difference between cost of inventory and estimated realizable value based on product sales projections.
 reserve calcu- lated using estimated obsolescence percentage applied to inventory based on age , historical trends requirements to support forecasted sales.
 in necessary may establish specific reserves for future known or anticipated events.
 pension and other post-retirement benefit costs offer following benefits to some or all employees : domestic trust-based noncontributory qual- ified defined benefit pension plan ( 201cu. s.
 qualified plan 201d ) and unfunded, non-qualified domestic noncon- tributory pension plan to provide benefits in excess of statutory limitations ( with.
 qualified plan 201cdomestic plans 201d ) ; domestic contributory defined contribution plan ; international pension plans  vary by country defined benefit and defined contribution pension plans ; deferred compensation arrangements ; certain other post- retirement benefit plans.
 amounts needed to fund future payouts under defined benefit pension and post-retirement benefit plans subject to numerous assumptions and variables.
 significant variables require to make assumptions within our control anticipated discount rate expected rate of return on plan assets future compensation levels.
 evaluate these assumptions with actuarial advisors select assumptions believe reflect economics underlying pension and post-retirement obligations.
 assumptions within accepted industry ranges increase or decrease in assumptions or economic events outside our control could have impact on reported net earnings.
 discount rate for each plan used for determining future net periodic benefit cost based on review of highly rated long-term bonds.
 for fiscal 2013  used discount rate for domestic plans of 3. 90% ( 3. 90 % ) and vary rates on international plans of between 1. 00% ( 1. 00 % ) and 7. 00% ( 7.00 % ).
 discount rate for domestic plans based on bond portfolio includes only long-term bonds with aa rating , or equivalent  from major rating agency.
 as of june 30 , 2013  used above-mean yield curve  rather than broad-based yield curve before because represents better estimate of effective settlement rate of obligation timing and of cash flows related to bonds in portfolio expected to match estimated defined benefit payment streams of domestic plans.
 benefit obligation of domestic plans would have been higher by approximately $ 34 mil- lion at june 30, 2013 not used above-mean yield curve.
 for international plans  discount rate in particular country determined based on yield curve from high quality corporate bonds in each country with resulting portfolio duration matching that particular plan.
 for fiscal 2013  used expected return on plan assets of 7. 50% ( 7. 50 % ) for our.
 qualified plan and varying rates of between 2. 25% ( 2. 25 % ) and 7. 00% ( 7. 00 % ) for international plans.
 in determining long-term rate of return for plan consider historical rates of return , nature of plan 2019s investments and expectation for plan 2019s investment strategies.
 see 201cnote 12 2014 pension , deferred compensation and post-retirement benefit plans 201d of notes to consolidated financial statements for details regarding nature pension and post-retirement plan invest- ments.
 difference between actual and expected return on plan assets reported as component of other comprehensive income.
 gains/losses subject to amortization over future periods recognized as component of net periodic benefit cost in future periods.
 for fiscal 2013  pension plans had actual return on assets of approximately $ 74 million compared with expected return on assets of approximately $ 64 million.
resulting net deferred gain of approximately $ 10 million  combined with gains and losses from previous years amortized over approximately 7 to 22 years.
 actual return on plan assets from international pen- sion plans exceeded expectations reflecting strong performance from fixed income and equity invest- ments.
 lower than expected return on assets from our u. s.
 qualified plan due to weakness in fixed income investments offset by strong equity returns.
 25 basis-point change in discount rate or expected rate of return on plan assets would have effect on fiscal 2013 pension expense : 25 basis-point 25 basis-point increase decrease ( in millions ).
 post-retirement plans comprised of health care plans could be impacted by health care cost trend rates may have significant effect on amounts est{e lauder companies inc.
 115

( in millions )           | 25 basis-point increase | 25 basis-point decrease
------------------------- | ----------------------- | -----------------------
discount rate             | $ -3.5 ( 3.5 )          | $ 3.9
expected return on assets | $ -2.5 ( 2.5 )          | $ 2.7


entergy corporation and subsidiaries management 2019s financial discussion analysis combination.
 consistent with terms stipulated settlement in business combination proceeding  electric customers of entergy louisiana realize customer credits associated with business combination ; in october 2015 entergy recorded regulatory liability of $ 107 million ( $ 66 million net-of-tax ).
 costs amortized over nine-year period beginning december 2015.
 see note 2 to financial statements for discussion of business combination customer credits.
 volume/weather variance due to effect more favorable weather during unbilled period increase in industrial usage  partially offset by effect less favorable weather on residential sales.
 increase in industrial usage due to expansion projects in chemicals industry increased demand from new customers primarily in industrial gases industry.
 louisiana act 55 financing savings obligation variance results from regulatory charge for tax savings shared with customers per agreement approved by lpsc.
 tax savings results from 2010-2011 irs audit settlement on treatment of louisiana act 55 financing of storm costs for hurricane gustav and hurricane ike.
 see note 3 to financial statements for additional discussion of settlement benefit sharing.
 provision of $ 23 million recorded in 2016 related to settlement of waterford 3 replacement steam generator prudence review proceeding offset by provision of $ 32 million recorded in 2015 related to uncertainty associated with resolution of waterford 3 replacement steam generator prudence review proceeding.
 see note 2 to financial statements for discussion of waterford 3 replacement steam generator prudence review proceeding.
 entergy wholesale commodities following analysis of change in net revenue comparing 2016 to 2015.
 amount ( in millions ).
shown in table above net revenue for entergy wholesale commodities decreased by $ 124 million in 2016 primarily due to : 2022 lower realized wholesale energy prices lower capacity prices , average revenue per mwh for nuclear fleet slightly higher includes revenues from fitzpatrick reimbursement agreement with exelon , amortization of palisades below-market ppa  vermont yankee capacity revenue.
 effect of amortization palisades below-market ppa vermont yankee capacity revenue on net revenue variance from 2015 to 2016 minimal ; 2022 sale of rhode island state energy center in december 2015.
 see note 14 to financial statements for discussion rhode island state energy center sale ; 2022 lower volume in entergy wholesale commodities nuclear fleet from more refueling outage days in 2016 compared to 2015 larger exercise of resupply options in 2016 compared 2015.
 see 201cnuclear

| amount ( in millions )
----------------------------------- | ----------------------
2015 net revenue                    | $ 1666
nuclear realized price changes      | -149 ( 149 )
rhode island state energy center    | -44 ( 44 )
nuclear volume                      | -36 ( 36 )
fitzpatrick reimbursement agreement | 41
nuclear fuel expenses               | 68
other                               | -4 ( 4 )
2016 net revenue                    | $ 1542


item 11 2014executive compensation incorporate item 11 information to executive director compensation under headings 201cother information about board committees , 201d 201ccompensation other benefits 201d 201creport of compensation committee 201d from proxy statement 2013 annual meeting of shareholders november 20 , 2013.
 item 12 2014security ownership of certain beneficial owners management related stockholder matters incorporate item 12 information relating ownership of common stock by certain persons under headings 201ccommon stock ownership of management 201d and 201ccommon stock ownership by certain other persons 201d from proxy statement 2013 annual meeting of shareholders november 20 , 2013.
 following table provides information as of may 31 , 2013 concerning shares of company 2019s common stock issued under existing equity compensation plans.
 for more information plans see note 11 to notes consolidated financial statements.
 plan category number of securities to be issued upon exercise of outstanding options , warrants rights weighted- average exercise price of outstanding options , warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders : 1765510 $ 34. 92 7927210 ( 1 ) equity compensation plans not approved by security holders : 2014 2014.
 1 ) includes shares of common stock available for issuance other than upon exercise of option , warrant or right under global payments inc.
 2000 long-term incentive plan , amended and restated  global payments inc.
 amended and restated 2005 incentive plan  amended and restated 2000 non- employee director stock option plan  global payments employee stock purchase plan global payments inc.
 2011 incentive plan.
item 13 2014certain relationships related transactions , director independence incorporate by reference in item 13 information regarding certain relationships related transactions between us affiliates independence of our board of directors contained under headings 201ccertain relationships related transactions 201d and 201cother information about board its committees 201d from our proxy statement delivered in connection with our 2013 annual meeting of shareholders held on november 20 , 2013.
 item 14 2014principal accounting fees services incorporate by reference in item 14 information regarding principal accounting fees services under section ratification of reappointment of auditors from our proxy statement delivered in connection with our 2013 annual meeting of shareholders held on november 20 , 2013.

plan category                                               | number of securities to be issued upon exercise of outstanding options warrants and rights ( a ) | weighted-average exerciseprice of outstanding options warrants and rights ( b ) | number of securitiesremaining available forfuture issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c ) |
----------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- | --------
equity compensation plans approved by security holders:     | 1765510                                                                                | $ 34.92                                                                         | 7927210                                                                                | -1 ( 1 )
equity compensation plans not approved by security holders: | 2014                                                                                | 2014                                                                            | 2014                                                                                |
total                                                       | 1765510                                                                                | $ 34.92                                                                         | 7927210                                                                                | -1 ( 1 )


march 2000  company entered $ 850 million revolving credit agreement with syndicate of banks provides for combination of loans or letters of credit up to maximum borrowing capacity.
 loans under facility bear interest at prime plus spread of 0. 50% (. 50 % ) or libor plus spread of 2% ( 2 % ).
 spreads subject to adjustment based on company 2019s credit ratings and term remaining to maturity.
 facility replaced company existing separate $ 600 million revolving credit facility and $ 250 million letter of credit facilities.
 as of december 31 , 2001  $ 496 million available.
 commitment fees on facility at december 31  2001 were. 50% (. 50 % ) per annum.
 company 2019s recourse debt borrowings are unsecured obligations company.
 may 2001  company issued $ 200 million of remarketable or redeemable securities ( 2018 2018roars 2019 2019 ).
 roars scheduled to mature on june 15 , 2013 maturity date may be adjusted to date no later than june 15 , 2014.
 first remarketing date ( june 15 , 2003 ) or subsequent remarketing dates remarketing agent  or company  may elect to redeem roars at 100% ( 100 % ) of aggregate principal amount and unpaid interest  plus premium in certain circumstances.
 company option may redeem roars subsequent to first remarketing date any time.
 interest on roars accrues at 7. 375% ( 7. 375 % ) until first remarketing date thereafter set annually based on market rate bids with floor of 5. 5% ( 5. 5 % ).
 roars are senior notes.
 junior subordinate debentures convertible into common stock company at option of holder before maturity unless previously redeemed at conversion price of $ 27. 00 per share.
future maturities of debt 2014scheduled maturities of total debt at december 31 , 2001  are ( in millions ) :.
 covenants 2014the terms of company 2019s recourse debt  including revolving bank loan  senior subordinated notes contain restrictive financial and non-financial covenants.
 financial covenants provide for  maintenance of minimum consolidated net worth  minimum consolidated cash flow coverage ratio minimum ratio of recourse debt to recourse capital.
 non-financial covenants include limitations on incurrence of additional debt payments of dividends to stockholders.
 company 2019s revolver contains provisions regarding events of default caused by default in other debt of aes significant subsidiaries defined in agreement.
 terms of company 2019s non-recourse debt  debt held at subsidiaries include financial and non-financial covenants.
 covenants limited to subsidiary activity vary among subsidiaries.
 covenants may include maintenance of certain reserves  minimum levels working capital limitations on incurring additional indebtedness.
 as of december 31 , 2001  approximately $ 442 million of restricted cash was maintained in accordance with covenants of debt agreements amounts included within debt service reserves and other deposits in consolidated balance sheets.
 lender and governmental provisions restrict ability company 2019s subsidiaries to transfer retained earnings to parent company.
 restricted retained earnings of subsidiaries amounted to approximately $ 6. 5 billion at december 31 , 2001.

2002       | $ 2672
---------- | -------
2003       | 2323
2004       | 1255
2005       | 1819
2006       | 1383
thereafter | 12806
total      | $ 22258


future capital commitments commitments consist of contracted commitments including ship construction contracts future expected capital expenditures necessary for operations ship refurbishment projects.
 as of december 31 , 2018 anticipated capital expenditures were $ 1. 6 billion , $ 1. 2 billion and $ 0. 7 billion for years ending december 31 , 2019 , 2020 2021 .
 export credit financing in for anticipated expenditures to ship construction contracts of $ 0. 6 billion , $ 0. 5 billion $ 0. 2 billion for years ending december 31  2019  2020 2021.
 future expected capital expenditures will increase depreciation and amortization expense as take delivery of ships.
 project leonardo introduce additional six ships  each approximately 140000 gross tons with approximately 3300 berths expected delivery dates from 2022 through 2027 subject to certain conditions.
 breakaway plus class ship , norwegian encore  with approximately 168000 gross tons with 4000 berths on order for delivery in fall of 2019.
 for regent brand  orders for two explorer class ships , seven seas splendor additional ship  delivered in 2020 and 2023 .
 each explorer class ships approximately 55000 gross tons and 750 berths.
 for oceania cruises brand orders for two allura class ships delivered in 2022 and 2025.
 each class ships approximately 67000 gross tons and 1200 berths.
 combined contract prices of 11 ships on order for delivery was approximately 20ac7. 9 billion , or $ 9. 1 billion based on euro/u.
 dollar exchange rate as of december 31 , 2018.
 obtained export credit financing expected to fund approximately 80% ( ) of contract price of each ship subject to certain conditions.
 not anticipate contractual breaches or cancellations to occur.
if events occur could result in forfeiture of prior deposits payments potential claims impairment losses may impact our business  financial condition results of operations.
 capitalized interest for years ended december 31 , 2018 , 2017 2016 was $ 30. 4 million , $ 29. 0 million $ 33. 7 million  primarily associated with construction of newbuild ships.
 off-balance sheet transactions contractual obligations as of december 31, 2018  contractual obligations with initial remaining terms in excess of one year including interest payments on long-term debt obligations were as follows ( in thousands ) : less than 1 year 1-3 years 3-5 years more than 5 years.
 1 long-term debt includes discount premiums aggregating $ 0. 4 million capital leases.
 long-term debt excludes deferred financing fees direct deduction from carrying value of related debt liability in consolidated balance sheets.
 2 ) operating leases are primarily for offices  motor vehicles office equipment.
 3 ) ship construction contracts for newbuild ships based on euro/u.
 dollar exchange rate as of december 31 , 2018.
 export credit financing in from syndicates of banks.
 amount not include two project leonardo ships  one explorer class ship two allura class ships still subject to financing italian government approvals as of december 31 , 2018.
 refer to note 17 2014 201csubsequent events 201d in consolidated financial statements for details regarding financing for certain ships.
 4 ) port facilities for usage of certain port facilities.
 5 ) interest includes fixed and variable rates with libor held constant as of december 31 , 2018.
 6 ) includes future commitments for service , maintenance business enhancement capital expenditure contracts.
 7 ) total excludes $ 0.5 million unrecognized tax benefits as of december 31 , 2018  because estimate timing future tax settlements be reasonably determined.

| total      | less than1 year | 1-3 years | 3-5 years | more than5 years
--------------------------------- | ---------- | --------------- | --------- | --------- | ----------------
long-term debt ( 1 )              | $ 6609866  | $ 681218        | $ 3232177 | $ 929088  | $ 1767383
operating leases ( 2 )            | 128550     | 16651           | 31420     | 27853     | 52626
ship construction contracts ( 3 ) | 5141441    | 912858          | 662687    | 1976223   | 1589673
port facilities ( 4 )             | 1738036    | 62388           | 151682    | 157330    | 1366636
interest ( 5 )                    | 974444     | 222427          | 404380    | 165172    | 182465
other ( 6 )                       | 1381518    | 248107          | 433161    | 354454    | 345796
total ( 7 )                       | $ 15973855 | $ 2143649       | $ 4915507 | $ 3610120 | $ 5304579


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 $ 857. 3 and $ 619. 4 as of december 31 , 2016 and 2015  respectively parent company guarantees relating to credit facilities was $ 395. 6 and $ 336. 5 as of december 31 , 2016 and 2015  respectively.
 event of non-payment by applicable subsidiary of obligations covered by guarantee we obligated to pay amounts covered by guarantee.
 as of december 31, 2016 no material assets pledged as security for parent company guarantees.
 contingent acquisition obligations table details estimated future contingent acquisition obligations payable in cash as of december 31.
 entered into certain acquisitions contain redeemable noncontrolling interests and call options with similar terms and conditions.
 estimated amounts listed paid in event of exercise at earliest exercise date.
 certain redeemable noncontrolling interests exercisable at discretion of noncontrolling equity owners as of december 31 , 2016.
 estimated payments of $ 25. 9 included within total payments expected to in 2017 continue to carried forward into 2018 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 measurement of redeemable securities.
 majority of payments contingent upon achieving projected operating performance targets and satisfying other conditions in related agreements subject to revision in accordance with terms respective agreements.
 see note 4 for further information payment structure of acquisitions.
legal matters in normal course of business , we involved in various legal proceedings  subject to investigations , inspections  audits  inquiries similar actions by governmental authorities.
 types of allegations in with legal proceedings vary in can include claims related to contract , employment  tax intellectual property matters.
 we evaluate all cases each reporting period record liabilities for losses from legal proceedings when we determine probable outcome in legal proceeding be unfavorable and amount  potential range  of loss can be reasonably estimated.
 in certain cases , we cannot reasonably estimate potential loss because  for example litigation is in early stages.
 any outcome related to litigation or governmental proceedings we involved cannot be predicted with certainty , management believes outcome of these matters  individually aggregate will not have material adverse effect on our financial condition , results of operations or cash flows.
 previously disclosed on april 10 , 2015 , federal judge in brazil authorized search of records of agency 2019s offices in s e3o paulo and brasilia  in connection with ongoing investigation by brazilian authorities involving payments potentially connected to local government contracts.
 company had previously investigated matter taken remedial and disciplinary actions.
 company in process of concluding a settlement related to matters with government agencies.
 company confirmed one of its standalone domestic agencies contacted by department of justice antitrust division for documents regarding video production practices cooperating with government.

| 2017    | 2018    | 2019   | 2020   | 2021   | thereafter | total
--------------------------------------------------------------------- | ------- | ------- | ------ | ------ | ------ | ---------- | -------
deferred acquisition payments                                         | $ 76.9  | $ 31.6  | $ 25.1 | $ 8.9  | $ 26.9 | $ 11.4     | $ 180.8
redeemable noncontrolling interests and call options with affiliates1 | 34.7    | 76.5    | 32.9   | 3.9    | 3.1    | 4.2        | 155.3
total contingent acquisition payments                                 | $ 111.6 | $ 108.1 | $ 58.0 | $ 12.8 | $ 30.0 | $ 15.6     | $ 336.1


tax returns under examination in foreign jurisdictions.
 major tax jurisdictions include germany italy switzerland.
 possible audits resolved in next twelve months not anticipate resolution audits material impact on results operations or financial position.
 12.
 capital stock earnings per share 2 million shares of series participating cumulative preferred stock authorized for issuance none outstanding as of december 31 , 2007.
 numerator for basic and diluted earnings per share is net earnings available to common stockholders.
 denominator for basic earnings per share is weighted average number of common shares outstanding during period.
 denominator for diluted earnings per share is weighted average shares outstanding adjusted for effect of dilutive stock options and other equity awards.
 reconciliation of weighted average shares for basic and diluted share computations for years ending december 31 ( in millions ) :.
 weighted average shares outstanding for basic net earnings per share 235. 5 243. 0 247. 1 effect of dilutive stock options and other equity awards 2. 0 2. 4 2. 7 weighted average shares outstanding for diluted net earnings per share 237. 5 245. 4 249. for year ended december 31, 2007 average of 3. 1 million options to purchase shares of common stock not included in computation diluted earnings per share as exercise prices of options greater than average market price of common stock.
 for years ended december 31 , 2006 and 2005  average of 7. 6 million and 2. 9 million options  not included.
 in december 2005 board of directors authorized stock repurchase program of up to $ 1 billion through december 31 , 2007.
 in december 2006 board authorized additional stock repurchase program of up to $ 1 billion through december 31 , 2008.
as of december 31 , 2007 acquired approximately 19345200 shares cost of $ 1378. 9 million  before commissions.
 13.
 segment data design , develop  manufacture market reconstructive orthopaedic implants  including joint dental , spinal implants  trauma products related orthopaedic surgical products include surgical supplies instruments aid in orthopaedic surgical procedures post-operation rehabilitation.
 provide other healthcare related services.
 revenue related to these services represents less than 1 percent of total net sales.
 manage operations through three major geographic segments 2013 americas , principally united states includes north , central south american markets ; europe  principally europe includes middle east africa ; asia pacific  primarily japan includes other asian pacific markets.
 structure basis for reportable segment information.
 management evaluates operating segment performance based upon segment operating profit exclusive of operating expenses global operations corporate expenses  share-based compensation expense  settlement , acquisition , integration other expenses  inventory step-up  in-process research and development write- offs intangible asset amortization expense.
 global operations include research , development engineering  medical education  brand management  corporate legal , finance  human resource functions u. s.
 puerto rico based manufacturing operations logistics.
 intercompany transactions eliminated from segment operating profit.
 management reviews accounts receivable , inventory  property , plant equipment  goodwill intangible assets by reportable segment exclusive of u. s puerto rico based manufacturing operations logistics corporate assets.
 z m r h o l d i n g s i n c.
 2 0 0 7 f o r m 1 0 - k n n u a l r e p o r t notes to consolidated financial statements ( continued )

| 2007  | 2006  | 2005
---------------------------------------------------------------------- | ----- | ----- | -----
weighted average shares outstanding for basic net earnings per share   | 235.5 | 243.0 | 247.1
effect of dilutive stock options and other equity awards               | 2.0   | 2.4   | 2.7
weighted average shares outstanding for diluted net earnings per share | 237.5 | 245.4 | 249.8


liquidity capital resources major components of changes in cash flows for 2016 , 2015 2014 discussed in paragraphs.
 table summarizes cash flow from operating investing financing activities for years ended december 31 , 2016  2015 2014 ( in millions of dollars ) :.
 cash flows provided by operating activities significant items affecting comparison operating cash flows for 2016 2015 summarized : changes in assets liabilities  net of effects from business acquisitions divestitures decreased cash flow from operations by $ 205. 2 million in 2016 compared to decrease $ 316. 7 million in 2015 result of 2022 accounts receivable  exclusive change in allowance for doubtful accounts customer credits increased $ 52. 3 million during 2016 due to timing of billings net of collections compared to $ 15. 7 million increase in 2015.
 as of december 31 , 2016 2015  days sales outstanding were 38. 1 and 38. 3 days  or 26. 1 and 25. 8 days net of deferred revenue.
 2022 accounts payable decreased $ 9. 8 million during 2016 compared to increase of $ 35. 6 million 2015 due to timing of payments.
 2022 cash paid for capping  closure post-closure obligations was $ 11. 0 million lower 2016 compared to 2015.
 decrease in cash paid for capping  obligations due to payments in 2015 related to required capping event at closed landfills.
 2022 cash paid for remediation obligations was $ 13. 2 million lower during 2016 compared to 2015 due to timing of obligations.
 cash paid for income taxes was approximately $ 265 million and $ 321 million for 2016 and 2015 .
 income taxes paid in 2016 2015 reflect favorable tax depreciation provisions of protecting americans from tax hikes act signed into law in december 2015 realization of certain tax credits.
cash paid for interest was $ 330. 2 million and $ 327. 6 million for 2016 and 2015 .
 significant items affecting comparison operating cash flows for 2015 and 2014 summarized : changes in assets liabilities  net effects business acquisitions divestitures decreased cash flow from operations by $ 316. 7 million in 2015  compared to decrease $ 295. 6 million in 2014  result of : 2022 accounts receivable  exclusive change allowance for doubtful accounts customer credits increased $ 15. 7 million 2015 due to timing of billings net of collections compared to $ 54. 3 million increase in 2014.
 as of december 31 , 2015 and 2014  days sales outstanding were 38 days or 26 and 25 days net of deferred revenue .
 2022 accounts payable increased $ 35. 6 million and $ 3. 3 million during 2015 and 2014 due to timing of payments as of december 31 , 2015.

| 2016             | 2015               | 2014
----------------------------------------- | ---------------- | ------------------ | ----------------
net cash provided by operating activities | $ 1847.8         | $ 1679.7           | $ 1529.8
net cash used in investing activities     | -961.2 ( 961.2 ) | -1482.8 ( 1482.8 ) | -959.8 ( 959.8 )
net cash used in financing activities     | -851.2 ( 851.2 ) | -239.7 ( 239.7 )   | -708.1 ( 708.1 )


biomet holdings , inc.
 subsidiaries 2017 form 10-k annual report notes to consolidated financial statements continued complete.
 table summarizes liabilities related to integration plans ( in millions ) : employee termination benefits contract terminations total.
 recognized other employee termination benefits related to ldr  acquisitions operational excellence initiatives.
 dedicated project personnel expenses include salary  benefits travel expenses other costs associated with employees 100 percent dedicated to integration of acquired businesses employees notified of termination continuing to work on transferring responsibilities employees working on quality enhancement and remediation efforts operational excellence initiatives.
 relocated facilities expenses are moving costs  lease expenses other facility costs incurred during relocation period facilities.
 litigation matters relate to net expenses recognized during year for estimated or actual settlement of pending litigation similar claims including matters where recognized income from settlement on more favorable terms previous estimate or reduced estimate of previously recorded contingent liability.
 litigation matters included royalty disputes  patent litigation matters product liability litigation matters commercial litigation matters.
 contract termination costs relate to terminated agreements in connection with integration of acquired companies changes to distribution model as of business restructuring operational excellence initiatives.
 terminated contracts relate to sales agents distribution agreements.
 information technology integration costs are non- capitalizable costs incurred related to integrating information technology platforms of acquired companies or other significant software implementations as part of quality and operational excellence initiatives.
 part of biomet merger  recognized $ 209. 0 million of intangible assets for in-process research and development ( 201cipr&d 201d ) projects.
 during 2017 and 2016 recorded impairment losses of $ 18. 8 million and $ 30.0 million  related to ipr&d intangible assets.
 impairments primarily due to termination of ipr&d projects.
 recognized $ 479. 0 million of intangible assets for trademarks indefinite life.
 during 2017  reclassified one trademarks to finite life asset resulted in impairment of $ 8. 0 million.
 loss/impairment on disposal of assets relates to assets sold or intend to sell or for economic useful life of asset significantly reduced due to integration or quality and operational excellence initiatives.
 contingent consideration adjustments represent changes in fair value of contingent consideration obligations paid to prior owners of acquired businesses.
 certain r&d agreements relate to agreements with upfront payments to obtain intellectual property used in r&d projects no alternative future use in other projects.
 cash and cash equivalents 2013 consider all highly liquid investments with original maturity of three months or less to be cash equivalents.
 carrying amounts reported in balance sheet for cash and cash equivalents valued at cost  approximates fair value.
 accounts receivable 2013 accounts receivable consists of trade and other miscellaneous receivables.
 grant credit to customers in normal course business maintain allowance for doubtful accounts for potential credit losses.
 determine allowance for doubtful accounts by geographic market consideration historical credit experience creditworthiness of customer and other pertinent information.
 concerted efforts to collect all accounts receivable sometimes to write-off account against allowance when determine account uncollectible.
 allowance for doubtful accounts was $ 60. 2 million and $ 51. 6 million as of december 31 , 2017 and 2016 .
 inventories 2013 inventories stated at lower of cost or market  cost determined on first-in first-out basis.
property , plant and equipment 2013 property  plant equipment carried at cost less accumulated depreciation.
 depreciation computed using straight-line method based on estimated useful lives of ten to forty years for buildings improvements three to eight years for machinery and equipment.
 maintenance and repairs expensed as incurred.
 review property , plant equipment for impairment whenever events changes circumstances indicate carrying value of asset may not be recoverable.
 impairment loss recognized when estimated future undiscounted cash flows asset less than its carrying amount.
 impairment loss measured as amount carrying amount of asset exceeds its fair value.
 software costs 2013 capitalize certain computer software software development costs incurred in with developing or obtaining computer software for internal use when preliminary project stage completed probable software will be used as intended.
 capitalized software costs include external direct costs of materials services utilized in developing obtaining computer software compensation and related

| employee termination benefits | contract terminations | total
-------------------------------------- | ----------------------------- | --------------------- | --------------
balance december 31 2016               | $ 38.1                        | $ 35.1                | $ 73.2
additions                              | 12.1                          | 5.2                   | 17.3
cash payments                          | -36.7 ( 36.7 )                | -10.4 ( 10.4 )        | -47.1 ( 47.1 )
foreign currency exchange rate changes | 1.3                           | 0.4                   | 1.7
balance december 31 2017               | $ 14.8                        | $ 30.3                | $ 45.1


meet customer needs us to handle demand changes.
 continue utilizing industrial engineering techniques to improve productivity.
 2022 fuel prices 2013 uncertainty about economy makes fuel price projections difficult could see volatile fuel prices during year  sensitive to global.
 domestic demand  refining capacity  geopolitical issues events  weather conditions other factors.
 to reduce impact of fuel price on earnings continue to seek recovery from customers through fuel surcharge programs expand fuel conservation efforts.
 2022 capital plan 2013 in 2010  plan to make total capital investments of approximately $ 2. 5 billion  including expenditures for ptc may be revised if business conditions or new laws or regulations affect generate sufficient returns on investments.
 see further discussion in item 7 under liquidity and capital resources 2013 capital plan.
 2022 positive train control ( ptc ) 2013 response to legislative mandate to implement ptc by end of 2015 expect to spend approximately $ 200 million during 2010 on development of ptc.
 estimate ptc will cost approximately $ 1. 4 billion to implement by end of 2015  accordance with rules issued by fra.
 includes costs for installing new system along tracks upgrading locomotives new system adding digital data communication equipment system communicate.
 2022 financial expectations 2013 remain cautious about economic conditions expect volume to increase from 2009 levels.
 anticipate continued pricing opportunities further productivity improvements.
 results of operations operating revenues millions of dollars 2009 2008 2007 % ( % ) change 2009 v 2008 % ( % ) change 2008 v 2007.
 freight revenues are revenues generated by transporting freight or other materials from six commodity groups.
 freight revenues vary with volume ( carloads ) average revenue per car ( arc ).
 changes in price , traffic mix fuel surcharges drive arc.
provide customers with contractual incentives for meeting or exceeding specified cumulative volumes or shipping to and from specific locations record as reduction to freight revenues based on actual or projected future shipments.
 recognize freight revenues on percentage-of-completion basis as freight moves from origin to destination.
 allocate freight revenues between reporting periods based on relative transit time each recognize expenses as we incur them.
 other revenues include revenues earned by subsidiaries from commuter rail operations accessorial revenues earn when customers retain equipment owned controlled us or perform additional services switching or storage.
 recognize other revenues as perform services or meet contractual obligations.
 freight revenues and volume levels for all six commodity groups decreased during 2009  reflecting continued economic weakness.
 experienced largest volume declines in automotive and industrial

millions of dollars | 2009    | 2008    | 2007    | % (  % ) change 2009 v 2008 | % (  % ) change 2008 v 2007
------------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
freight revenues    | $ 13373 | $ 17118 | $ 15486 | ( 22 ) % (  % )             | 11% ( 11 % )
other revenues      | 770     | 852     | 797     | -10 ( 10 )                  | 7
total               | $ 14143 | $ 17970 | $ 16283 | ( 21 ) % (  % )             | 10% ( 10 % )


part ii item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities market price dividends on registrant 2019s common equity stockholder matters market information.
 our class a common stock quoted on nasdaq global select market under symbol 201cdish. 201d high and low closing sale prices of class a common stock during 2014 and 2013 on nasdaq global select market reported set forth below.
 as of february 13 , 2015  approximately 8208 holders of record of class a common stock not including stockholders beneficially own class a common stock held in nominee or street name.
 as of february 10, 2015  213247004 of 238435208 outstanding shares of class b common stock beneficially held by charles w.
 ergen , chairman remaining 25188204 held in trusts established by mr.
 ergen for benefit family.
 no trading market for class b common stock.
 dividends.
 on december 28 , 2012  paid cash dividend of $ 1. 00 per share  or approximately $ 453 million  on outstanding class a and class b common stock to stockholders of record at close of business on december 14 , 2012.
 not intend to declare additional dividends common stock may elect to time to time.
 payment future dividends depend upon earnings capital requirements restrictions in debt facilities other factors board of directors considers appropriate.
 intend to retain earnings to support future growth and expansion may repurchase shares of common stock from time to time.
 see further discussion under 201citem 7.
 management 2019s discussion analysis of financial condition results of operations 2013 liquidity and capital resources 201d in annual report on form 10-k.
 securities authorized for issuance under equity compensation plans.
 see 201citem 12.
security ownership certain beneficial owners management related stockholder matters 201d in annual report form 10-k.

2014           | high    | low
-------------- | ------- | -------
first quarter  | $ 62.42 | $ 54.10
second quarter | 65.64   | 56.23
third quarter  | 66.71   | 61.87
fourth quarter | 79.41   | 57.96
2013           | high    | low
first quarter  | $ 38.02 | $ 34.19
second quarter | 42.52   | 36.24
third quarter  | 48.09   | 41.66
fourth quarter | 57.92   | 45.68


death of employee employee 2019s beneficiary typically receives designated portion of death benefits directly from insurance company company receives remainder of death benefits.
 expected minimal cash payments required to fund these policies.
 net periodic pension cost for split-dollar life insurance arrangements was $ 5 million for years ended december 31 , 2014 , 2013 and 2012.
 company recorded liability representing actuarial present value of future death benefits as of employees 2019 expected retirement date of $ 66 million and $ 51 million as of december 31, 2014 and december 31 , 2013  respectively.
 deferred compensation plan company amended and reinstated deferred compensation plan ( 201cthe plan 201d ) effective june 1 , 2013 to reopen plan to certain participants.
 plan participants may elect to defer base salary and cash incentive compensation in excess of 401 ( k ) plan limitations.
 participants plan may choose to invest deferred amounts in same investment alternatives available under company's 401 ( k ) plan.
 plan allows for company matching contributions for first 4% ( 4 % ) of compensation deferred under plan  subject to maximum of $ 50000 for board officers  ii ) lost matching amounts made under 401 ( k ) plan if participants not participated plan iii ) discretionary amounts as approved by compensation and leadership committee of board of directors.
 defined contribution plan company and certain subsidiaries have various defined contribution plans all eligible employees may participate.
. 401 ( k ) plan is contributory plan.
 matching contributions based upon amount employees 2019 contributions.
 company 2019s expenses for material defined contribution plans for years ended december 31 , 2014 , 2013 and 2012 were $ 31 million , $ 32 million and $ 30 million , respectively.
beginning january 1, 2012 company may make additional discretionary 401 ( k ) plan matching contribution to eligible employees.
 for years ended december 31 , 2014  2013  2012 company made no discretionary matching contributions.
.
 share-based compensation plans incentive plans stock options stock appreciation rights employee stock purchase plan company grants options to acquire shares common stock to certain employees existing option holders of acquired companies in with merging of option plans following acquisition.
 each option granted and stock appreciation right has exercise price no less than 100% ( % ) of fair market value of common stock on date of grant.
 awards have contractual life of five to fifteen years vest over two to four years.
 stock options stock appreciation rights assumed or replaced with comparable stock options rights with change in control company become exercisable if holder involuntarily terminated or quits for good reason within 24 months of change in control.
 employee stock purchase plan allows eligible participants to purchase shares company 2019s common stock through payroll deductions of up to 20% ( % ) of eligible compensation after-tax basis.
 participants cannot purchase more than $ 25000 of stock in any calendar year.
 price employee pays per share is 85% ( 85 % ) of lower fair market value of company 2019s stock on close of first trading day or last trading day of purchase period.
 plan has two purchase periods first from october 1 through march 31 second from april 1 through september 30.
 for years ended december 31 , 2014 , 2013 2012  employees purchased 1. 4 million , 1. 5 million 1. 4 million shares  at purchase prices of $ 51. 76 $ 53. 79 , $ 43. 02 $ 50. 47 , $ 34. 52 and $ 42. 96 .
company calculates value of each employee stock option  estimated on date of grant using black-scholes option pricing model.
 weighted-average estimated fair value of employee stock options granted during 2014, 2013 2012 was $ 11. 02 , $ 9. 52 $ 9. 60  respectively using weighted-average assumptions:.
 company uses implied volatility for traded options on company 2019s stock as expected volatility assumption required in black-scholes model.
 selection of implied volatility approach based upon availability of actively traded options on company 2019s stock and company 2019s assessment implied volatility more representative of future stock price trends than historical volatility.
 risk-free interest rate assumption based upon average daily closing rates during year for. s.
 treasury notes life approximates expected life of option.
 dividend yield assumption based on company 2019s future expectation of dividend payouts.
 expected life of employee stock options represents average of contractual term of options and weighted-average vesting period for all option tranches.

| 2014             | 2013             | 2012
----------------------- | ---------------- | ---------------- | ----------------
expected volatility     | 21.7% ( 21.7 % ) | 22.1% ( 22.1 % ) | 24.0% ( 24.0 % )
risk-free interest rate | 1.6% ( 1.6 % )   | 0.9% ( 0.9 % )   | 0.8% ( 0.8 % )
dividend yield          | 2.5% ( 2.5 % )   | 2.4% ( 2.4 % )   | 2.2% ( 2.2 % )
expected life ( years ) | 5.2              | 5.9              | 6.1


cdw corporation subsidiaries notes to consolidated financial statements 2013 denominator impacted by common shares issued during ipo and underwriters 2019 exercise overallotment option granted in connection with ipo.
 such common shares issued on july 2 , 2013 and july 31 , 2013  only partially reflected in 2013 denominator.
 such shares fully reflected in 2014 denominator.
 see note 9 for additional discussion of ipo.
 dilutive effect of outstanding restricted stock , restricted stock units , stock options mpk plan units reflected in denominator for diluted earnings per share using treasury stock method.
 reconciliation of basic shares to diluted shares:.
 for years ended december 31 , 2013 , 2012 2011  diluted earnings per share excludes impact of 0. 0 million , 0. 0 million , and 4. 3 million potential common shares , their inclusion would have had anti-dilutive effect.
 12.
 deferred compensation plan on march 10 , 2010  connection with company 2019s purchase of $ 28. 5 million principal amount of outstanding senior subordinated debt  company established restricted debt unit plan ( 201crdu plan 201d ) unfunded nonqualified deferred compensation plan.
 total number of rdus can be granted under rdu plan is 28500.
 at december 31 , 2013 , 28500 rdus were outstanding.
 rdus outstanding vest daily on pro rata basis over three-year period from january 1 , 2012 ( or date of hire subsequent rdu grant ) through december 31 , 2014.
 participants have no rights to underlying debt.
 total amount of compensation available to be paid under rdu plan initially based on two components  principal component and interest component.
 principal component credits rdu plan with notional amount equal to $ 28.5 million face value of senior subordinated notes ( 201cdebt pool 201d ) , with certain redemption premium equivalents as noted below.
 interest component credits rdu plan with amounts equal to interest earned on debt pool from march 10 , 2010 through maturity on october 12 , 2017 , except discussed below.
 interest amounts for 2010 and 2011 deferred until 2012  interest amounts paid to participants semi-annually on interest payment due dates.
 payments totaling $ 1. 7 million and $ 1. 3 million made to participants under rdu plan in april and october 2013 , respectively in connection with semi-annual interest payments due.
 company used portion of ipo proceeds with incremental borrowings to redeem $ 324. 0 million of total senior subordinated notes outstanding on august 1 , 2013.
 in connection with ipo partial redemption of senior subordinated notes company amended rdu plan to increase retentive value of plan.
 accordance with original terms rdu plan principal component of rdus converted to cash-denominated pool upon redemption of senior subordinated notes.
 company added $ 1. 4 million to principal component in year ended december 31 , 2013 as redemption premium equivalents in accordance with terms of rdu plan.
 under terms amended rdu plan upon partial redemption of outstanding senior subordinated notes , rdus ceased to accrue proportionate related interest component credits.

( in millions )                   | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
--------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
weighted-average shares - basic   | 156.6                          | 145.1                          | 144.8
effect of dilutive securities     | 2.1                            | 0.7                            | 0.1
weighted-average shares - diluted | 158.7                          | 145.8                          | 144.9


printing papers net sales 2006 decreased 3% ( 3 % ) from 2005 and 2004 due to sale of.
 coated papers business august 2006.
 operating profits 2006 43% ( 43 % ) higher than 2005 33% ( 33 % ) higher than 2004.
 2005 earnings improved for.
 uncoated papers  market pulp european papers  partially offset by earnings declines in brazilian papers.
 benefits from higher average sales price realizations in united states europe brazil ( $ 284 million ) improved manufacturing operations ( $ 73 million ) reduced lack-of-order downtime ( $ 41 million ) higher sales volumes in europe ( $ 23 million ) other items ( $ 65 million ) offset by higher raw material energy costs ( $ 109 million ) higher freight costs ( $ 45 million ) impairment charge to reduce carrying value of fixed assets at saillat  france mill ( $ 128 million ).
 compared with 2004 higher earnings 2006 in.
 uncoated papers  market pulp coated papers businesses offset by lower earn ings in european brazilian papers.
 printing papers segment took 555000 tons of downtime in 2006 including 150000 tons of lack-of-order downtime to align production with customer demand.
 compared with 970000 tons total downtime in 2005 520000 tons related to lack-of-orders.
 printing papers in 2006 2005 2004.
.
 uncoated papers net sales 2006 were $ 3. 5 billion  compared with $ 3. 2 billion 2005 $ 3. 3 billion in 2004.
 sales volumes increased 2006 over 2005 particularly in cut-size paper and printing papers.
 average sales price realizations increased reflecting benefits from price increases late 2005 early 2006.
lack-of-order downtime declined from 450000 tons in 2005 to 40000 tons in 2006 reflecting firm market demand impact of closure of three uncoated freesheet machines in 2005.
 operating earnings 2006 doubled compared with 2005 and 2004.
 benefits improved sales price realizations offset higher input costs for freight wood energy all above 2005 levels.
 mill operations favorable due to improve- ments in machine performance lower labor chem ical energy consumption costs $ 30 million charges incurred in 2005 for machine shutdowns.
.
 coated papers net sales were $ 920 million in 2006 $ 1. 6 billion in 2005 $ 1. 4 billion in 2004.
 operating profits in 2006 were 26% ( 26 % ) lower than 2005.
 small operating loss reported for business in 2004.
 business sold in third quarter of 2006.
 first two quarters of 2006 sales volumes up slightly versus 2005.
 average sales price realizations for coated freesheet paper and coated groundwood paper higher than 2005 reflecting impact of price increases.
 input costs for energy wood other raw materials increased over 2005 levels.
 manufacturing operations favorable due to higher machine efficiency mill cost savings.
.
 market pulp sales in 2006 were $ 509 mil- lion  compared with $ 526 million and $ 437 million in 2005 and 2004.
 sales volumes in 2006 down from 2005 levels primarily for paper and tissue pulp.
 average sales price realizations higher in 2006 reflecting higher average prices for fluff pulp bleached hardwood softwood pulp.
 operating earnings increased 30% ( 30 % ) from 2005 more than 100% ( 100 % ) from 2004 due to impact higher average sales prices.
 input costs for wood and energy higher in 2006 than 2005.
manufacturing operations unfavorable driven by poor operations at riegel- wood north carolina mill.
 brazil ian paper net sales for 2006 of $ 496 mil- lion higher than $ 465 million in 2005 $ 417 million in 2004.
 sales increase 2006 reflects higher sales volumes than 2005 ularly for uncoated freesheet paper strengthening of brazilian currency versus.
 dollar.
 average sales price realizations improved in 2006 primarily for uncoated freesheet paper wood chips.
 despite higher net sales operating profits for 2006 of $ 122 million down from $ 134 million in 2005 $ 166 million in 2004 due to incremental costs extended mill outage convert to elemental-chlorine-free bleaching process rebuild primary recovery boiler other environmental upgrades.
 european papers net sales 2006 were $ 1. 5 bil- lion  compared with $ 1. 4 billion in 2005 $ 1. 5 bil- lion in 2004.
 sales volumes 2006 higher than 2005 at eastern european mills due to stron ger market demand.
 average sales price realizations increased 2006 in eastern and western european markets.
 operating earnings 2006 rose 20% ( 20 % ) from 2005 15% ( 15 % ) below 2004 levels.
 improvement in 2006 compared with 2005

in millions      | 2006   | 2005   | 2004
---------------- | ------ | ------ | ------
sales            | $ 6930 | $ 7170 | $ 7135
operating profit | $ 677  | $ 473  | $ 508


jpmorgan chase & co.
 / 2008 annual report 175jpmorgan chase co.
 2008 annual report.
.
.
 175 securities borrowed and securities lent recorded at amount cash collateral advanced or received.
 securities borrowed consist primarily of government and equity securities.
 jpmorgan chase moni tors market value of securities borrowed and lent daily basis calls for additional collateral when appropriate.
 fees received or paid with securities borrowed recorded in interest income or interest expense.
 table details components of collateralized financings.
 ( a ) includes resale agreements of $ 20. 8 billion and $ 19. 1 billion accounted for at fair value at december 31, 2008 and 2007.
 ( b ) includes securities borrowed of $ 3. 4 billion accounted for at fair value at december 31 , 2008.
 ( c ) includes repurchase agreements of $ 3. 0 billion and $ 5. 8 billion accounted for at fair value at december 31, 2008 and 2007.
 jpmorgan chase pledges financial instruments owns to col- lateralize repurchase agreements and other securities financings.
 pledged securities that can be sold or repledged by secured party identified as financial instruments owned ( pledged to parties ) on consolidated balance sheets.
 at december 31 , 2008 firm received securities as collateral could be repledged delivered or used with fair value of approximately $ 511. 9 billion.
 collateral generally obtained under resale or securities borrowing agreements.
 securities approximately $ 456. 6 billion repledged , delivered or used generally as collateral under repurchase agreements  securities lending agreements or to cover short sales.
note 14 2013 loans accounting for loan may differ based origi- nated or purchased loan used in invest- ing or trading strategy.
 for purchased loans held-for-investment accounting differs depending on loan credit- impaired at date acquisition.
 purchased loans with evidence credit deterioration since origination date probable at acquisition all contractually required payments receivable not be collected are considered credit-impaired.
 measurement framework for loans in consolidated financial statements is : 2022 at principal amount outstanding net of allowance for loan losses  unearned income net deferred loan fees or costs for loans held for investment ( other than purchased credit- impaired loans ) ; 2022 at lower of cost or fair value  with valuation changes record- ed in noninterest revenue  for loans classified as held- for-sale ; or 2022 at fair value  with changes in fair value recorded in noninterest revenue  for loans classified as trading assets or risk managed fair value basis ; 2022 purchased credit-impaired loans held for investment account- ed for under sop 03-3 initially measured at fair value  includes estimated future credit losses.
 allowance for loan losses related these loans not recorded at acquisition date.
 see note 5 on pages 156 2013158 annual report for information on firm 2019s elections of fair value accounting under sfas 159.
 see note 6 on pages 158 2013160 annual report for information on loans carried at fair value and classified as trading assets.
 for loans held for investment  other than purchased credit-impaired loans interest income recognized using interest method or basis approximating level rate of return over term of loan.
 loans within held-for-investment portfolio that management decides to sell are transferred to held-for-sale portfolio.
transfers to held-for-sale recorded at lower of cost or fair value on date of transfer.
 credit-related losses charged off to allowance for loan losses and losses due to changes in interest rates or exchange rates recognized in noninterest revenue.
 loans within held-for-sale portfolio management decides to retain transferred to held-for-investment portfolio at lower of cost or fair value.
 loans subsequently assessed for impairment based on firm 2019s allowance methodology.
 for fur- ther discussion of methodologies establishing firm 2019s allowance for loan losses, see note 15 on pages 178 2013180 of this annual report.
 nonaccrual loans are those on accrual of interest is dis- continued.
 loans ( other than certain consumer and purchased credit- impaired loans discussed ) placed on nonaccrual status immediately if management full payment of princi- pal or interest in doubt or when principal or interest is 90 days or more past due and collateral  insufficient to cover principal and interest.
 loans charged off to allowance for loan losses when highly certain that loss has been realized.
 interest accrued but not collected at date loan placed on nonaccrual status reversed against interest income.
 amortiza- tion of net deferred loan fees suspended.
 interest income on nonaccrual loans recognized only to extent received in cash.
 where doubt regarding ultimate col- lectibility of loan principal all cash received applied to reduce carrying value of such loans (. cost recovery method ).
 loans restored to accrual status only when future pay- ments of interest and principal reasonably assured.
consumer loans  other than purchased credit-impaired loans generally charged to allowance for loan losses upon reaching specified stages delinquency accordance with federal financial institutions examination council policy.
 for example credit card loans charged off by end of month account becomes 180 days past due or within 60 days from notification of filing bankruptcy whichever is earlier.
 residential mortgage products charged off to net real- izable value at no later than 180 days past due.
 other consumer

december 31 ( in millions )                        | 2008     | 2007
-------------------------------------------------- | -------- | --------
securities purchased under resale agreements ( a ) | $ 200265 | $ 169305
securities borrowed ( b )                          | 124000   | 84184
securities sold under repurchase agreements ( c )  | $ 174456 | $ 126098
securities loaned                                  | 6077     | 10922


notes to consolidated financial statements bank subsidiaries gs bank usa , an fdic-insured new york state-chartered bank member of federal reserve system supervised regulated by federal reserve board fdic  new york state department of financial services consumer financial protection bureau subject to minimum capital requirements described below ) calculated similar to bank holding companies.
 gs bank usa computes capital ratios accordance with regulatory capital requirements applicable to state member banks based on basel 1 implemented by federal reserve board for assessing adequacy of capital.
 under regulatory framework for prompt corrective action applicable to gs bank usa to be considered 201cwell-capitalized 201d depository institution  gs bank usa must maintain tier 1 capital ratio of at least 6% ( 6 % )  total capital ratio at least 10% ( 10 % ) tier 1 leverage ratio of at least 5% ( 5 % ).
 gs bank usa agreed with federal reserve board to maintain minimum capital ratios in excess of these 201cwell- capitalized 201d levels.
 for period time gs bank usa expected to maintain tier 1 capital ratio of at least 8% ( 8 % )  total capital ratio of at least 11% ( 11 % ) tier 1 leverage ratio of at least 6% ( 6 % ).
 in table below gs bank usa in compliance with these minimum capital requirements as of december 2012 and december 2011.
 table below presents information regarding gs bank usa 2019s regulatory capital ratios under basel 1 as implemented by federal reserve board.
 effective january 1 , 2013  gs bank usa implemented revised market risk regulatory framework.
 changes resulted in increased regulatory capital requirements for market risk reflected in all gs bank usa 2019s basel-based capital ratios for periods beginning on or after january 1 , 2013.
gs bank usa working to implement basel 2 framework , implemented by federal reserve board.
 gs bank usa will adopt basel 2 once approved by regulators.
 capital requirements for gs bank usa expected to be impacted by june 2012 proposed modifications to agencies 2019 capital adequacy regulations including requirements of floor to advanced risk-based capital ratios.
 if enacted proposed these proposals would change regulatory framework for prompt corrective action applicable to gs bank usa by  introducing common equity tier 1 ratio requirement increasing minimum tier 1 capital ratio requirement introducing supplementary leverage ratio as component of prompt corrective action analysis.
 gs bank usa impacted by aspects dodd-frank act , including new stress tests.
 deposits of gs bank usa insured by fdic to extent provided by law.
 federal reserve board requires depository institutions to maintain cash reserves with federal reserve bank.
 amount deposited by firm 2019s depository institution held at federal reserve bank was approximately $ 58. 67 billion and $ 40. 06 billion as of december 2012 and december 2011  respectively exceeded required reserve amounts by $ 58. 59 billion and $ 39. 51 billion as of december 2012 and december 2011 .
 transactions between gs bank usa and its subsidiaries and group inc.
 and subsidiaries and affiliates ( other subsidiaries of gs bank usa ) are regulated by federal reserve board.
 these regulations limit types and amounts of transactions ( including credit extensions from gs bank usa ) require transactions to be on market terms or better to gs bank usa.
 firm 2019s principal non-u. s.
bank subsidiaries include gsib  wholly-owned regulated by fsa  and gs bank europe regulated by central bank of ireland both subject to minimum capital requirements.
 as of december 2012 and december 2011  gsib and gs bank europe in compliance with all regulatory capital requirements.
 on january 18 , 2013  gs bank europe surrendered banking license to central bank of ireland after transferring deposits to gsib.
 goldman sachs 2012 annual report 187

$ in millions         | as of december 2012 | as of december 2011
--------------------- | ------------------- | -------------------
tier 1 capital        | $ 20704             | $ 19251
tier 2 capital        | $ 39                | $ 6
total capital         | $ 20743             | $ 19257
risk-weighted assets  | $ 109669            | $ 112824
tier 1 capital ratio  | 18.9% ( 18.9 % )    | 17.1% ( 17.1 % )
total capital ratio   | 18.9% ( 18.9 % )    | 17.1% ( 17.1 % )
tier 1 leverage ratio | 17.6% ( 17.6 % )    | 18.5% ( 18.5 % )


constitutes event of default under our other debt instruments  including senior notes  senior notes also subject to acceleration of maturity.
 if acceleration to occur we not have sufficient liquidity available to repay indebtedness.
 likely to seek amendment under credit facilities for relief from financial covenants or repay debt with proceeds from issuance of new debt or equity  or asset sales  if necessary.
 may be unable to amend credit facilities or raise sufficient capital to repay obligations in event maturities accelerated.
 financial assurance we must provide financial assurance to governmental agencies and other entities under applicable environmental regulations relating to our landfill operations for capping , closure and post-closure costs related to performance under certain collection , landfill and transfer station contracts.
 we satisfy financial assurance requirements by providing surety bonds , letters of credit insurance policies ( financial assurance instruments trust deposits  included in restricted cash and marketable securities and other assets in our consolidated balance sheets.
 amount of financial assurance requirements for capping , closure and post-closure costs is determined by state environmental regulations.
 financial assurance requirements for capping closure post-closure costs may be associated with portion of landfill or entire landfill.
 states require third-party engineering specialist to determine estimated capping , closure and post-closure costs to determine required amount of financial assurance for landfill.
 amount of financial assurance required can differ from obligation determined and recorded under u.
.
 amount of financial assurance requirements related to contract performance varies by contract.
 we must provide financial assurance for our insurance program and collateral for certain performance obligations.
 do not expect material increase in financial assurance requirements during 2014  mix of financial assurance instruments may change.
financial instruments issued in normal course of business not considered indebtedness.
 currently no liability for financial assurance instruments not reflected in consolidated balance sheets ; we record capping , closure post-closure liabilities self-insurance liabilities as incurred.
 underlying obligations of financial assurance instruments, in excess of those already reflected in consolidated balance sheets, be recorded if probable we unable to fulfill related obligations.
 do not expect this to occur.
 off-balance sheet arrangements no off-balance sheet debt or similar obligations  other than financial assurance instruments and operating leases not classified as debt.
 do not guarantee third-party debt.
 free cash flow define free cash flow , not measure determined in accordance with u. s.
 gaap as cash provided by operating activities less purchases of property and equipment  plus proceeds from sales of property and equipment as presented in consolidated statements of cash flows.
 free cash flow for years ended december 31 , 2013 , 2012 2011 calculated as follows ( in millions of dollars ) :.

| 2013             | 2012             | 2011
--------------------------------------------- | ---------------- | ---------------- | ----------------
cash provided by operating activities         | $ 1548.2         | $ 1513.8         | $ 1766.7
purchases of property and equipment           | -880.8 ( 880.8 ) | -903.5 ( 903.5 ) | -936.5 ( 936.5 )
proceeds from sales of property and equipment | 23.9             | 28.7             | 34.6
free cash flow                                | $ 691.3          | $ 639.0          | $ 864.8