table details growth in global weighted average berths global  north american european cruise guests over past five years : weighted-average supply of berths marketed globally ( 1 ) royal caribbean cruises ltd.
 total berths global cruise guests ( 1 ) north american cruise guests ( 2 ) european cruise guests ( 3 ).
 source our estimates of number of global cruise guests weighted-average supply of berths marketed globally based on data from various publicly available cruise industry trade information sources including seatrade insider cruise industry news cruise line international association.
 our estimates incorporate our own statistical analysis utilizing same publicly available cruise industry data as base.
 source : cruise line international association based on cruise guests carried for two consecutive nights for years 2009 through 2012.
 year 2013 amounts represent our estimates.
 includes united states of america canada.
 3 ) source : clia europe , formerly european cruise council  for years 2009 through 2012.
 year 2013 amounts represent our estimates.
 north america majority of cruise guests sourced from north america represented approximately 56% ( 56 % ) of global cruise guests in 2013.
 compound annual growth rate in cruise guests sourced from this market was approximately 3. 2% ( 3. 2 % ) from 2009 to 2013.
 europe cruise guests sourced from europe represented approximately 30% ( 30 % ) of global cruise guests in 2013.
 compound annual growth rate in cruise guests sourced from this market was approximately 6. 0% ( 6. 0 % ) from 2009 to 2013.
 other markets expected industry growth in north america europe expect asia/pacific region to demonstrate higher growth rate in near term continue represent small sector compared to north america and europe.
 on industry data cruise guests sourced from asia/pacific region represented approximately 4. 5% (.5 % ) global cruise guests in 2013.
 compound annual growth rate in cruise guests from market was approximately 15% ( 15 % ) from 2011 to 2013.
 competition we compete with number cruise lines.
 princi- pal competitors are carnival corporation & plc , owns   aida cruises , carnival cruise lines , costa cruises , cunard line , holland america line , iberocruceros , p&o cruises princess cruises ; disney cruise line ; msc cruises ; norwegian cruise line oceania cruises.
 cruise lines compete with other vacation alternatives land-based resort hotels sightseeing destinations for consumers 2019 leisure time.
 demand for activities influenced by political general economic conditions.
 com- panies vacation market dependent on consumer discretionary spending.
 operating strategies principal operating strategies are to : employees protect environment vessels organization operate  better serve global guest base grow business  enhance revenues  brands globally  expenditures ensure adequate cash and liquid- ity  goal of maximizing return on invested capital long-term shareholder value , ization maintenance of existing ships transfer of key innovations across each brand  prudently expanding fleet with new state-of- the-art cruise ships  ships deploying them into markets itineraries opportunities to optimize returns  continuing focus on existing key markets  service customer preferences expectations in innovative manner  supporting strategic focus on profitability

year | weighted-averagesupply ofberthsmarketedglobally ( 1 ) | royal caribbean cruises ltd . total berths | globalcruiseguests ( 1 ) | north americancruiseguests ( 2 ) | europeancruiseguests ( 3 )
---- | ----------------------------------------------------- | ------------------------------------------ | ------------------------ | -------------------------------- | --------------------------
2009 | 363000                                                | 84050                                      | 17340000                 | 10198000                         | 5000000
2010 | 391000                                                | 92300                                      | 18800000                 | 10781000                         | 5540000
2011 | 412000                                                | 92650                                      | 20227000                 | 11625000                         | 5894000
2012 | 425000                                                | 98650                                      | 20898000                 | 11640000                         | 6139000
2013 | 432000                                                | 98750                                      | 21300000                 | 11816000                         | 6399000


impact on earnings of assumed 10% ( % ) change in each periods presented not significant.
 revenue included $ 100. 8 million operating income included $ 9. 0 million of unfavorable foreign currency impact during 2012 from stronger u. s.
 dollar 2012 compared to 2011.
 foreign exchange risk management policy permits use of derivative instruments forward contracts options to reduce volatility in results operations cash flows from foreign exchange rate fluctuations.
 international operations' revenues and expenses generally denominated in local currency limits economic exposure to foreign exchange risk in jurisdictions.
 do not enter into foreign currency derivative instruments for trading purposes.
 entered into foreign currency forward exchange contracts to hedge foreign currency exposure to intercompany loans.
 as of december 31 , 2012 notional amount of these derivatives was approximately $ 115. 6 million fair value was nominal.
 derivatives intended to hedge foreign exchange risks related to intercompany loans not designated as hedges for accounting purposes.

currency       | 2012   | 2011   | 2010
-------------- | ------ | ------ | ------
real           | $ 40.4 | $ 42.4 | $ 32.5
euro           | 27.1   | 26.4   | 18.6
pound sterling | 18.5   | 17.6   | 9.0
indian rupee   | 4.3    | 3.6    | 2.6
total impact   | $ 90.3 | $ 90.0 | $ 62.7


17.
 leases we lease certain locomotives  freight cars  other property.
 consolidated statements of financial position as of december 31 , 2016  and 2015 included $ 1997 million , net of $ 1121 million of accumulated depreciation  and $ 2273 million , net of $ 1189 million of accumulated depreciation  for properties under capital leases.
 charge to income from depreciation for assets under capital leases included within depreciation expense in consolidated statements of income.
 future minimum lease payments for operating and capital leases with initial or remaining non-cancelable lease terms in excess of one year as of december 31, 2016  were : millions operating leases capital leases.
 approximately 96% ( 96 % ) of capital lease payments relate to locomotives.
 rent expense for operating leases with terms exceeding one month was $ 535 million in 2016  $ 590 million in 2015  $ 593 million in 2014.
 when cash rental payments not made straight-line basis recognize variable rental expense straight-line basis over lease term.
 contingent rentals and sub-rentals not significant.
 18.
 commitments contingencies asserted and unasserted claims 2013 various claims lawsuits pending against us and subsidiaries.
 cannot fully determine effect of all asserted unasserted claims on consolidated results of operations  financial condition liquidity.
 recorded liability where asserted claims considered probable claims reasonably estimated.
 not expect any known lawsuits , claims environmental costs commitments contingent liabilities guarantees will have material adverse effect on consolidated results of operations  financial condition liquidity after taking account liabilities insurance recoveries previously recorded for.
personal injury 2013 cost of personal injuries to employees others related to activities charged to expense based on estimates of ultimate cost and number of incidents each year.
 use actuarial analysis to measure expense and liability including unasserted claims.
 federal employers 2019 liability act ( fela ) governs compensation for work-related accidents.
 under fela damages assessed based on finding of fault through litigation or out-of-court settlements.
 offer comprehensive services and rehabilitation programs for employees injured at work.
 personal injury liability not discounted to present value due to uncertainty surrounding timing of future payments.
 approximately 94% ( 94 % ) of recorded liability related to asserted claims approximately 6% ( 6 % ) related to unasserted claims at december 31 , 2016.
 uncertainty surrounding ultimate outcome of personal injury claims possible future costs to settle claims may range from approximately $ 290 million to $ 317 million.
 record accrual at low end of range no loss within range more probable.
 estimates can vary over time due to evolving trends in litigation.

millions                                | operatingleases | capitalleases
--------------------------------------- | --------------- | -------------
2017                                    | $ 461           | $ 221
2018                                    | 390             | 193
2019                                    | 348             | 179
2020                                    | 285             | 187
2021                                    | 245             | 158
later years                             | 1314            | 417
total minimum lease payments            | $ 3043          | $ 1355
amount representing interest            | n/a             | -250 ( 250 )
present value of minimum lease payments | n/a             | $ 1105


american tower corporation subsidiaries notes consolidated financial statements 2014 table illustrates effect on net loss per share if applied fair value recognition provisions of sfas no.
 123 to stock-based compensation.
 estimated fair value of each option calculated using black-scholes option-pricing model ( in thousands except per share amounts ).
 fair value of financial instruments 2014as of december 31 , 2002 carrying amounts of company 2019s 5. 0% ( 5. 0 % ) convertible notes  2. 25% ( 2. 25 % ) convertible notes 6. 25% ( 6. 25 % ) convertible notes senior notes were approximately $ 450. 0 million  $ 210. 9 million  $ 212. 7 million $ 1. 0 billion  fair values were $ 291. 4 million  $ 187. 2 million  $ 144. 4 million $ 780. 0 million .
 as of december 31 , 2001 carrying amount of company 2019s 5. 0% ( 5. 0 % ) convertible notes  2. 25% ( 2. 25 % ) convertible notes 6. 25% ( 6. 25 % ) convertible notes senior notes were approximately $ 450. 0 million  $ 204. 1 million  $ 212. 8 million $ 1. 0 billion  fair values of notes were $ 268. 3 million  $ 173. 1 million  $ 158. 2 million $ 805. 0 million .
 fair values determined based on quoted market prices.
 carrying values of all other financial instruments approximate related fair values as of december 31 , 2002 2001.
 retirement plan company has 401 ( k ) plan covering all employees meet age employment requirements.
 company matches 35% ( 35 % ) of participants 2019 contributions up to maximum 5% ( 5 % ) of participant 2019s compensation.
company contributed approximately $ 979000 , $ 1540000 $ 1593000 to plan for years ended december 31 , 2002 , 2001 2000 , respectively.
 recent accounting pronouncements 2014in june 2001  fasb issued sfas no.
 143 , 201caccounting for asset retirement obligations. 201d statement establishes accounting standards for recognition measurement of liabilities associated with retirement of tangible long-lived assets related asset retirement costs.
 requirements of sfas no.
 143 effective for company as of january 1, 2003.
 company will adopt statement in first quarter of 2003 not expect impact material impact on consolidated financial position or results of operations.
 in august 2001  fasb issued sfas no.
 144 , 201caccounting for impairment or disposal of long-lived assets. 201d sfas no.
 144 supersedes sfas no.
 121 , 201caccounting for impairment of long-lived assets for assets disposed 201d retains fundamental provisions.
 sfas no.
 144 clarifies measurement and classification issues from sfas no.
 121.
 sfas no.
 144 supersedes accounting and reporting provisions for disposal of business segment as found in apb no.
 30 , 201creporting results of operations 2014reporting effects of disposal of segment business extraordinary , unusual infrequently occurring events and transactions 201d.
 sfas no.
 144 retains requirement in apb no.
 30 to separately report discontinued operations broadens scope requirement to include more types of disposal transactions.
 scope of sfas no.
 144 excludes goodwill and other intangible assets not to be amortized as accounting for such items prescribed by sfas no.
 142.
 company implemented sfas no.
144 january 1 , 2002.
 all relevant impairment assessments decisions concerning discontinued operations made under this standard in 2002.

| 2002                   | 2001                 | 2000
--------------------------------------------------------------------------------------------------------------------------------------- | ---------------------- | -------------------- | --------------------
net loss as reported                                                                                | $ -1141879 ( 1141879 ) | $ -450094 ( 450094 ) | $ -194628 ( 194628 )
less : total stock-based employee compensation expense determined under fair value basedmethod for all awards net of related tax effect | -38126 ( 38126 )       | -50540 ( 50540 )     | -51186 ( 51186 )
pro-forma net loss                                                                                | $ -1180005 ( 1180005 ) | $ -500634 ( 500634 ) | $ -245814 ( 245814 )
basic and diluted net loss per share 2014as reported                                                                                | $ -5.84 ( 5.84 )       | $ -2.35 ( 2.35 )     | $ -1.15 ( 1.15 )
basic and diluted net loss per share 2014pro-forma                                                                                | $ -6.04 ( 6.04 )       | $ -2.61 ( 2.61 )     | $ -1.46 ( 1.46 )


american tower corporation subsidiaries notes to consolidated financial statements loss on retirement of long-term obligations 2014loss on retirement includes cash paid to retire debt excess carrying value  cash paid to holders convertible notes note conversions non-cash charges related to write-off of deferred financing fees.
 loss on retirement includes gains from repurchasing or refinancing company 2019s debt obligations.
 earnings per common share 2014basic diluted 2014basic income from continuing operations per common share for years ended december 31 , 2012, 2011 2010 represents income from continuing operations american tower corporation divided by weighted average number of common shares outstanding period.
 diluted income from continuing operations per common share years ended december 31 , 2012 2011 2010 represents income operations american tower corporation divided by weighted average number of common shares outstanding period dilutive common share equivalents  including unvested restricted stock  shares issuable upon exercise of stock options warrants determined under treasury stock method upon conversion of company 2019s convertible notes  determined under if-converted method.
 retirement plan 2014the company has 401 ( k ) plan covering all employees meet certain age employment requirements.
 company 2019s matching contribution for years ended december 31 , 2012 , 2011 2010 is 50% ( 50 % ) up to maximum 6% ( 6 % ) of participant 2019s contributions.
 for years ended december 31 , 2012 , 2011 2010  company contributed approximately $ 4. 4 million , $ 2. 9 million $ 1. 9 million to plan  respectively.
.
 prepaid and other current assets prepaid assets consist of following as of december 31 , ( in thousands ) :.
 december 31, 2011 balances revised to reflect purchase accounting measurement period adjustments.

| 2012     | 2011 ( 1 )
----------------------------------------------------- | -------- | ----------
prepaid income tax                                    | $ 57665  | $ 31384
prepaid operating ground leases                       | 56916    | 49585
value added tax and other consumption tax receivables | 22443    | 81276
prepaid assets                                        | 19037    | 28031
other miscellaneous current assets                    | 66790    | 59997
balance as of december 31,                            | $ 222851 | $ 250273


hologic , inc.
 notes to consolidated financial statements ( continued ( in thousands  except per share data ) supply chain improve manufacturing margins.
 combination of companies should facilitate manufacturing efficiencies accelerate research and development of new detector products.
 aeg was privately held group of companies headquartered in warstein , germany  with manufacturing operations in germany  china united states.
 aggregate purchase price for aeg was approximately $ 31300 ( subject to adjustment ) eur $ 24100 in cash 110 shares of hologic common stock valued at $ 5300 , approximately $ 1900 for acquisition related fees and expenses.
 company determined fair value of shares issued in with acquisition in accordance with eitf issue no.
 99-12 , determination measurement date for market price of acquirer securities in purchase business combination.
 110 shares subject to contingent put options holders option to resell shares company during period one year following completion acquisition if closing price of company 2019s stock falls remains below threshold price.
 put options never exercised expired on may 2 , 2007.
 acquisition provided for one-year earn out of eur 1700 ( approximately $ 2000 usd ) payable in cash if aeg calendar year 2006 earnings  exceeded pre-determined amount.
 aeg 2019s 2006 earnings did not exceed such pre-determined amounts no payment made.
 components and allocation of purchase price consists of following approximate amounts:.
 company implemented plan to restructure aeg 2019s historical activities.
 company originally recorded liability of approximately $ 2100 in accordance with eitf issue no.
 95-3 , recognition of liabilities in connection with purchase business combination related to termination of certain employees under plan.
completion of plan in fiscal 2007 company reduced liability by approximately $ 241 with corresponding reduction in goodwill.
 all amounts paid as of september 29 , 2007.
 part of aeg acquisition company acquired minority interest in equity securities of private german company.
 company estimated fair value of securities to approximately $ 1400 in original purchase price allocation.
 during year ended september 29 , 2007  company sold securities for proceeds of approximately $ 2150.
 difference of approximately $ 750 between preliminary fair value estimate and proceeds upon sale recorded as reduction of goodwill.
 final purchase price allocations completed within one year of acquisition adjustments not material impact on company 2019s financial position or results of operations.
 no other material changes to purchase price allocation disclosed in company 2019s form 10-k for year ended september 30 , 2006.
 part of purchase price allocation all intangible assets part of acquisition identified and valued.
 determined only customer relationship , trade name  developed technology and know how and in-process research and development had separately identifiable values.
 fair value of these intangible assets determined through application of income approach.
 customer relationship represents aeg 2019s high dependency on small number of large accounts.
 aeg markets products through distributors directly to own customers.
 trade name represents aeg 2019s product names company intends to continue to use.
 developed technology and know how represents currently marketable

net tangible assets acquired as of may 2 2006 | $ 24800
--------------------------------------------- | --------------
in-process research and development           | 600
developed technology and know how             | 1900
customer relationship                         | 800
trade name                                    | 400
deferred income taxes                         | -3000 ( 3000 )
goodwill                                      | 5800
estimated purchase price                      | $ 31300


mill fourth quarter 2008.
 compares with 635000 tons total downtime in 2008 305000 tons lack-of-order downtime.
 printing papers in millions 2009 2008 2007.
 north american printing papers net sales in 2009 were $ 2. 8 billion compared with $ 3. 4 billion in 2008 $ 3. 5 billion in 2007.
 operating earnings 2009 were $ 746 million ( $ 307 million excluding alter- native fuel mixture credits plant closure costs ) compared with $ 405 million ( $ 435 million excluding shutdown costs for paper machine ) in 2008 $ 415 million in 2007.
 sales volumes decreased in 2009 compared 2008 reflecting weak customer demand reduced production capacity from shutdown paper machine at franklin mill december 2008 conversion bastrop mill to pulp production june 2008.
 average sales price realizations lower reflecting slight declines for uncoated freesheet paper in domestic markets significant declines in export markets.
 margins unfavorably affected by higher proportion of shipments to lower-margin export markets.
 input costs favorable due to lower wood chemical costs lower energy costs.
 freight costs lower.
 planned maintenance downtime costs 2009 comparable with 2008.
 operating costs favorable reflecting cost control efforts strong machine performance.
 lack-of-order downtime increased to 525000 tons in 2009 including 120000 tons related to shutdown paper machine at franklin mill 2008 fourth quarter from 135000 tons in 2008.
 operating earnings 2009 included $ 671 million alternative fuel mixture cred- its $ 223 million costs associated with shutdown franklin mill $ 9 million other shutdown costs operating earnings 2008 included $ 30 million costs for shutdown paper machine franklin mill.
 2010 first-quarter sales volumes expected to increase slightly from fourth-quarter 2009 levels.
sales price realizations should be higher reflecting full-quarter impact of sales price increases fourth quarter for converting envelope grades of uncoated free- sheet paper increase in prices to export markets.
 input costs for wood  energy chemicals expected to increase.
 planned maintenance downtime costs lower operating costs favorable.
 brazil ian papers net sales for 2009 of $ 960 mil- lion increased from $ 950 million 2008 $ 850 million in 2007.
 operating profits for 2009 were $ 112 million compared with $ 186 million in 2008 $ 174 million in 2007.
 sales volumes increased 2009 2008 for paper and pulp reflect ing higher export shipments.
 sales price realizations lower due to competitive pressures in brazilian domestic market lower export prices unfavorable foreign exchange rates.
 margins unfavorably affected by higher proportion of lower margin export sales.
 input costs for wood chem- icals favorable offset by higher energy costs.
 maintenance downtime costs lower operating costs favorable.
 earnings 2009 adversely impacted by unfavorable foreign exchange effects.
 entering 2010 sales volumes expected to be seasonally lower compared with fourth quarter 2009.
 profit margins expected slightly higher reflecting favorable geographic sales mix improving sales price realizations in export markets offset by higher planned main- tenance outage costs.
 european papers net sales in 2009 were $ 1. 3 bil- lion compared with $ 1. 7 billion in 2008 $ 1. 5 bil- lion in 2007.
 operating profits in 2009 of $ 92 million ( $ 115 million excluding expenses with closure of inverurie mill ) compared with $ 39 mil- lion ( $ 146 million excluding charge to reduce carrying value of fixed assets at inverurie scotland mill to estimated realizable value ) in 2008 $ 171 million in 2007.
sales volumes in 2009 lower than 2008 due to reduced sales of uncoated freesheet paper following closure inverurie mill 2009.
 average sales price realizations decreased significantly 2009 across western europe margins increased in poland russia reflecting effect local currency devaluations.
 input costs favorable as lower wood costs particularly in russia partially offset by higher energy costs in poland higher chemical costs.
 planned main- tenance downtime costs higher in 2009 than 2008 manufacturing operating costs lower.
 operating profits 2009 reflect favorable foreign exchange impacts.
 to 2010  sales volumes expected to decline from strong 2009 fourth-quarter levels despite solid customer demand.
 average sales price realizations expected to increase over quar- ter primarily in eastern europe as price increases

in millions      | 2009   | 2008   | 2007
---------------- | ------ | ------ | ------
sales            | $ 5680 | $ 6810 | $ 6530
operating profit | 1091   | 474    | 839


reach in united states  adding 1400-person direct sales force , over 300000 merchants $ 130 billion in annual payments volume.
 goodwill of $ 3. 2 billion arising from merger  included in north america segment  attributable to expected growth opportunities potential synergies from combining existing businesses assembled workforce not deductible for income tax purposes.
 due to timing merger with heartland  still in process of assigning goodwill to reporting units.
 during year ended may 31 , 2016  incurred transaction costs in connection with merger of $ 24. 4 million  recorded in selling , general administrative expenses in consolidated statements of income.
 following reflects preliminary estimated fair values of identified intangible assets ( in thousands ) :.
 preliminary estimated fair value of customer-related intangible assets determined using income approach  based on projected cash flows discounted to present value using discount rates consider timing risk of forecasted cash flows.
 discount rate used is average estimated value of market participant 2019s cost of capital and debt  derived using customary market metrics.
 other significant assumptions include terminal value margin rates  future capital expenditures future working capital requirements.
 acquired technology valued using replacement cost method required to estimate cost to construct asset of equivalent utility at prices available at time of valuation analysis with adjustments in value for physical deterioration functional and economic obsolescence.
 trademarks and trade names valued using relief-from-royalty approach.
 method assumes trade marks trade names have value to extent owner relieved of obligation to pay royalties for benefits received from them.
 method required to estimate future revenue for related brands , appropriate royalty rate weighted-average cost of capital.
discount rate used is average estimated value of market participant 2019s cost of capital and debt derived using customary market metrics.
 weighted-average estimated amortization period for total acquired intangible assets is approximately 11 years.
 customer-related intangible assets have estimated amortization period 7-20 years.
 acquired technology estimated amortization period 5 years.
 trademarks and trade names estimated amortization period 7 years.
 covenants-not-to-compete amortization period 1-4 years.
 heartland 2019s revenues and operating income represented approximately 4% ( 4 % ) and less than 0. 5% ( 0. 5 % ) of total consolidated revenues and operating income for year ended may 31 , 2016.
 unaudited pro forma information shows results of operations for years ended may 31 , 2016 and may 31 , 2015 if merger with heartland occurred on june 1 , 2014.
 pro forma information reflects effects of applying accounting policies pro forma adjustments to combined historical financial information of global payments and heartland.
 pro forma adjustments include incremental amortization and depreciation expense incremental interest expense associated with new long-term debt reduction of revenues and operating expenses associated with fair value adjustments acquisition-method of accounting elimination of nonrecurring transaction costs related to merger.
 global payments.
 2016 form 10-k annual report 2013 67

customer-related intangible assets         | $ 977400
------------------------------------------ | ---------
acquired technology                        | 457000
trademarks and trade names                 | 176000
covenants-not-to-compete                   | 28640
total estimated acquired intangible assets | $ 1639040


net unfunded credit commitments.
 commitments to extend credit represent arrangements to lend funds subject to contractual conditions.
 at december 31 , 2007  commercial commitments reported net of $ 8. 9 billion of participations  assignments syndications primarily to financial services companies.
 comparable amount at december 31 , 2006 was $ 8. 3 billion.
 commitments have fixed expiration dates may require payment fee contain termination clauses in customer 2019s credit quality deteriorates.
 historical experience most commitments expire unfunded cash requirements less than total commitment.
 consumer home equity lines of credit accounted for 80% ( 80 % ) of consumer unfunded credit commitments.
 unfunded credit commitments related to market street totaled $ 8. 8 billion at december 31, 2007 and $ 5. 6 billion at december 31 , 2006 included in primarily within 201ccommercial 201d and 201cconsumer 201d categories.
 note 24 commitments and guarantees includes information regarding standby letters of credit and bankers acceptances.
 at december 31 , 2007 largest industry concentration for general medical and surgical hospitals accounted for approximately 5% ( 5 % ) of total letters of credit and bankers 2019 acceptances.
 at december 31 , 2007 pledged $ 1. 6 billion of loans to federal reserve bank ) and $ 33. 5 billion of loans to federal home loan bank ) as collateral for contingent ability to borrow if necessary.
 certain directors and executive officers of pnc and subsidiaries certain affiliated companies of were customers of had loans with subsidiary banks business.
 all loans were on substantially same terms including interest rates and collateral as prevailing time for comparable transactions other customers did not involve more than normal risk of collectibility or present other unfavorable features.
aggregate principal amounts loans were $ 13 million at december 31 , 2007 $ 18 million december 31 2006.
 during 2007 new loans $ 48 million funded repayments totaled $ 53 million.

december 31 - in millions | 2007    | 2006
------------------------- | ------- | -------
commercial                | $ 39171 | $ 31009
consumer                  | 10875   | 10495
commercial real estate    | 2734    | 2752
other                     | 567     | 579
total                     | $ 53347 | $ 44835


.
 segment information 2013 concluded ) 1 included in net sales were export sales from u. s.
 of $ 246 million  $ 277 million $ 275 million in 2010  2009 2008  respectively.
 intra-company sales between segments represented two percent of net sales in 2010 three percent 2009 one percent in 2008.
 included in net sales were sales to one customer of $ 1993 million  $ 2053 million $ 2058 million in 2010 2009 2008  respectively.
 net sales included in segments : cabinets related products  plumbing products  decorative architectural products other specialty products.
 net sales from company 2019s operations in u. s.
 were $ 5618 million , $ 5952 million $ 7150 million in 2010  2009 2008  respectively.
 net sales  operating ( loss ) profit  property additions depreciation amortization expense for 2010  2009 2008 excluded results of businesses discontinued operations in 2010 2009 2008.
 included in segment operating ( loss ) profit for 2010 were impairment charges for goodwill other intangible assets plumbing products 2013 $ 1 million installation and other services 2013 $ 720 million.
 included in segment operating profit ( loss ) for 2009 impairment charges for goodwill : plumbing products 2013 $ 39 million other specialty products 2013 $ 223 million.
 included in segment operating profit ( loss ) for 2008 impairment charges for goodwill other intangible assets : cabinets and related products 2013 $ 59 million ; plumbing products 2013 $ 203 million installation and other services 2013 $ 52 million ; other specialty products 2013 $ 153 million.
 7 general corporate expense , net included expenses not specifically attributable to company 2019s segments.
( 8 ) during 2009 , company recognized curtailment loss related to plan to freeze future benefit accruals beginning january 1 , 2010 under company 2019s domestic qualified and non-qualified defined-benefit pension plans.
 see note m to consolidated financial statements.
 ( 9 ) charge for litigation settlement in 2009 relates to business unit in cabinets and related products segment.
 charge for litigation settlement 2008 relates to business unit in installation and other services segment.
 ( 10 ) see note l to consolidated financial statements.
 ( 11 ) long-lived assets of company 2019s operations in u. s.
 europe were $ 3684 million $ 617 million , $ 4628 million $ 690 million , $ 4887 million $ 770 million at december 31, 2010 , 2009 2008 , respectively.
 ( 12 ) segment assets for 2009 and 2008 excluded assets of businesses reported as discontinued operations.
.
 other income ( expense ) , net included was as follows in millions:.
 masco corporation notes to consolidated financial statements 2014

| 2010     | 2009 | 2008
------------------------------------------------ | -------- | ---- | ----------
income from cash and cash investments            | $ 6      | $ 7  | $ 22
other interest income                            | 1        | 2    | 2
income from financial investments net ( note e ) | 9        | 3    | 1
other items net                                  | -9 ( 9 ) | 17   | -22 ( 22 )
total other net                                  | $ 7      | $ 29 | $ 3


notional amounts derivative receivables marked to market ( 201cmtm 201d ) notional amounts ( a ) derivative receivables mtm as of december 31.
 notional amounts represent gross sum of long and short third-party notional derivative contracts  excluding written options foreign exchange spot contracts exceed possible credit losses from such transactions.
 for most derivative transactions notional principal amount not change hands ; used as reference to calculate payments.
 b firm held $ 33 billion collateral against derivative receivables as of december 31, 2005  $ 27 billion net cash received under credit support annexes to legally enforceable master netting agreements $ 6 billion other liquid securities collateral.
 benefit of $ 27 billion reflected within $ 50 billion of derivative receivables.
 excluded from $ 33 billion of collateral is $ 10 billion of collateral delivered by clients at initiation of transactions ; collateral secures exposure in derivatives portfolio should client 2019s transactions move in firm 2019s favor.
 excluded are credit enhancements in form of letters of credit surety receivables.
 c firm held $ 41 billion of collateral against derivative receivables as of december 31 , 2004 $ 32 billion in net cash received under credit support annexes to legally enforceable master netting agreements $ 9 billion other liquid securities collateral.
 benefit of $ 32 billion reflected within $ 66 billion of derivative receivables.
 excluded from $ 41 billion of collateral is $ 10 billion of collateral delivered by clients at initiation of transactions ; collateral secures exposure arise in derivatives portfolio should client 2019s transactions move in firm 2019s favor.
 excluded are credit enhancements in form of letters of credit and surety receivables.
 management 2019s discussion and analysis jpmorgan chase & co.
68 jpmorgan chase & co.
 / 2005 annual report 1 year 2 years 5 years 10 years mdp avgavgdredre exposure profile of derivatives measures december 31 , 2005 ( in billions ) table summarizes aggregate notional amounts reported derivative receivables (. mtm or fair value of derivative contracts after effects of legally enforceable master netting agreements ) at each dates indicated : mtm of derivative receivables contracts represents cost to replace contracts at current market rates should counterparty default.
 when jpmorgan chase has more than one transaction outstanding with counter- party , and legally enforceable master netting agreement exists with counterparty , netted mtm exposure , less collateral held  represents in firm 2019s view appropriate measure of current credit risk.
 net mtm value of derivative receivables does not capture potential future variability of credit exposure.
 to capture potential future variability credit exposure firm calculates  client-by-client basis  three measures of potential derivatives-related credit loss : peak , derivative risk equivalent ( 201cdre 201d ) average exposure ( 201cavg 201d ).
 these measures all incorporate netting and collateral benefits  where applicable.
 peak exposure to counterparty is extreme measure of exposure calculated at 97. 5% ( 97. 5 % ) confidence level.
 total potential future credit risk in firm 2019s derivatives portfolio is not simple sum of all peak client credit risks.
 at portfolio level  credit risk is reduced by when offsetting transactions done with separate counter- parties  only one of two trades can generate credit loss  even if both counterparties default simultaneously.
firm refers to this effect as market diversification  market-diversified peak ( 201cmdp 201d ) measure is a portfolio aggregation of counterparty peak measures representing maximum losses at 97. 5% ( 97. 5 % ) confidence level if all coun- terparties defaulted under any one given market scenario and time frame.
 derivative risk equivalent ( 201cdre 201d ) exposure is measure expresses riskiness of derivative exposure equivalent to riskiness of loan exposures.
 measurement by equating unexpected loss in derivative counterparty exposure ( loss volatility and credit rating counterparty ) with unexpected loss in loan exposure ( only credit rating counterparty ).
 dre is less extreme measure of potential credit loss than peak primary measure used by firm for credit approval of derivative transactions.
 average exposure ( 201cavg 201d ) is measure of expected mtm value of firm 2019s derivative receivables at future time periods including benefit of collateral.
 avg exposure over total life of derivative contract is used as primary metric for pricing purposes and used to calculate credit capital and credit valuation adjustment ( 201ccva 201d ) .
 average exposure was $ 36 billion and $ 38 billion at december 31 , 2005 and 2004 , respectively compared with derivative receivables mtm net of other highly liquid collateral of $ 44 billion and $ 57 billion at december 31, 2005 and 2004 ,.
 graph below shows exposure profiles to derivatives over next 10 years as calculated by mdp , dre and avg metrics.
 all three measures generally show declining exposure after first year  if no new trades added to portfolio.

as of december 31 , ( in billions )           | as of december 31 , 2005 | as of december 31 , 2004 | 2005       | 2004
--------------------------------------------- | ------------------------ | ------------------------ | ---------- | ----------
interest rate                                 | $ 38493                  | $ 37022                  | $ 30       | $ 46
foreign exchange                              | 2136                     | 1886                     | 3          | 8
equity                                        | 458                      | 434                      | 6          | 6
credit derivatives                            | 2241                     | 1071                     | 4          | 3
commodity                                     | 265                      | 101                      | 7          | 3
total                                         | $ 43593                  | $ 40514                  | 50         | 66
collateral held againstderivative receivables | na                       | na                       | -6 ( 6 )   | -9 ( 9 )
exposure net of collateral                    | na                       | na                       | $ 44 ( b ) | $ 57 ( c )


jpmorgan chase & co. /2012 annual report 167 chart shows for year ended december 31 , 2012  firm posted market risk related gains on 220 of 261 days period gains on eight days exceeding $ 200 million.
 chart includes year to date losses in synthetic credit portfolio.
 cib and credit portfolio posted market risk-related gains on 254 days period.
 inset graph looks at days firm experienced losses depicts amount by var exceeded actual loss on each days.
 losses sustained on 41 days of 261 days trading period , firm sustained losses exceeded var measure on three of days.
 losses in excess of var all occurred in second quarter of 2012 due to adverse effect of market movements on risk positions in synthetic credit portfolio held by cio.
 during year ended december 31 , 2012  cib and credit portfolio experienced seven loss days ; none losses days exceeded respective var measures.
 other risk measures debit valuation adjustment sensitivity table provides information about gross sensitivity of dva to one-basis-point increase in jpmorgan chase 2019s credit spreads.
 sensitivity represents impact from one-basis-point parallel shift in jpmorgan chase 2019s entire credit curve.
 sensitivity at single point in time multiplied by change in credit spread at single maturity point may not be representative of actual dva gain or loss realized within period.
 actual results reflect movement in credit spreads across various maturities  typically not move parallel fashion product of constantly changing exposure profile , among other factors.
 debit valuation adjustment sensitivity ( in millions ) one basis-point increase in jpmorgan chase 2019s credit spread.
 economic-value stress testing with var  stress testing important in measuring and controlling risk.
var reflects risk of loss due to adverse changes in markets using recent historical market behavior as indicator losses stress testing captures firm 2019s exposure to unlikely but plausible events in abnormal markets.
 firm runs weekly stress tests on market-related risks across lines business using multiple scenarios assume significant changes in risk factors credit spreads equity prices interest rates currency rates commodity prices.
 framework uses grid-based approach calculates multiple magnitudes of stress for market rallies and market sell-offs

( in millions )  | one basis-point increase injpmorgan chase 2019s credit spread
---------------- | -------------------------------------------------------------
december 31 2012 | $ 34
december 31 2011 | 35


92  2017 form 10-k finite-lived intangible assets amortized over estimated useful lives tested for impairment if events or changes circumstances indicate asset be impaired.
 in 2016  gross customer relationship intangibles of $ 96 million related accumulated amortization $ 27 million gross intellectual property intangibles of $ 111 million accumulated amortization $ 48 million from resource industries segment impaired.
 fair value of intangibles determined to insignificant based on income approach using expected cash flows.
 fair value determination categorized as level 3 in fair value hierarchy due to use of internal projections unobservable measurement inputs.
 total impairment of $ 132 million result of restructuring activities included in other operating ( income ) expense in statement 1.
 see note 25 for information on restructuring costs.
 amortization expense related to intangible assets was $ 323 million, $ 326 million $ 337 million for 2017 , 2016 2015  respectively.
 as of december 31 , 2017 amortization expense related to intangible assets expected to be : ( millions of dollars ).
.
 goodwill no goodwill impairments during 2017 or 2015.
 annual impairment tests in fourth quarter of 2016 indicated fair value of each reporting unit substantially above respective carrying value including goodwill exception of surface mining & technology reporting unit.
 surface mining & technology reporting unit serves mining industry part of resource industries segment.
 goodwill assigned to reporting unit from acquisition of bucyrus international  inc.
 in 2011.
 product portfolio includes large mining trucks  electric rope shovels draglines  hydraulic shovels related parts.
 surface mining & technology develops and sells technology products services to provide customer fleet management  equipment management analytics autonomous machine capabilities.
annual impairment test completed in fourth quarter of 2016 indicated fair value of surface mining & technology below carrying value requiring second step of goodwill impairment test process.
 fair value of surface mining & technology determined primarily using income approach based on discounted ten year cash flow.
 assigned fair value to surface mining & technology 2019s assets liabilities using valuation techniques required assumptions about royalty rates dealer attrition technological obsolescence discount rates.
 resulting implied fair value of goodwill below carrying value.
 recognized goodwill impairment charge of $ 595 million resulted in goodwill of $ 629 million remaining for surface mining & technology as of october 1, 2016.
 fair value determination categorized as level 3 in fair value hierarchy due to use of internal projections unobservable measurement inputs.
 $ 17 million tax benefit associated with impairment charge.

2018  | 2019  | 2020  | 2021  | 2022  | thereafter
----- | ----- | ----- | ----- | ----- | ----------
$ 322 | $ 316 | $ 305 | $ 287 | $ 268 | $ 613


analysis of our depreciation studies.
 changes in estimated service lives of assets and related depreciation rates implemented prospectively.
 under group depreciation  historical cost ( net of salvage ) of depreciable property retired or replaced in ordinary course business charged to accumulated depreciation no gain or loss recognized.
 historical cost of certain track assets estimated using i ) inflation indices published by bureau of labor statistics and ii ) estimated useful lives of assets as determined by depreciation studies.
 indices selected because correlate with major costs of properties applicable track asset classes.
 because of number of estimates inherent in depreciation and retirement processes impossible to precisely estimate each variables until group of property is completely retired we continually monitor estimated service lives of assets and accumulated depreciation associated with each asset class to ensure depreciation rates appropriate.
 in we determine if recorded amount of accumulated depreciation is deficient ( or in excess ) of amount indicated by depreciation studies.
 any deficiency ( or excess ) is amortized as component of depreciation expense over remaining service lives of applicable classes of assets.
 for retirements of depreciable railroad properties not occur in normal course of business gain or loss may be recognized if retirement meets each of following three conditions : i ) is unusual , ii ) material in amount  iii ) varies significantly from retirement profile identified through depreciation studies.
 gain or loss recognized in other income when we sell land or dispose of assets not part of railroad operations.
 when we purchase asset  we capitalize all costs necessary to make asset ready for intended use.
 many of assets are self-constructed.
large portion of capital expenditures for replacement of existing track assets other road properties typically performed by employees for track line expansion other capacity projects.
 costs directly attributable to capital projects ( including overhead costs ) are capitalized.
 direct costs capitalized as part of self- constructed assets include material  labor  work equipment.
 indirect costs capitalized if relate to construction of asset.
 general and administrative expenditures expensed as incurred.
 normal repairs and maintenance also expensed as incurred costs that extend useful life of asset improve safety operations or improve operating efficiency are capitalized.
 costs allocated using appropriate statistical bases.
 total expense for repairs maintenance incurred was $ 2. 4 billion for 2014  $ 2. 3 billion for 2013  $ 2. 1 billion for 2012.
 assets held under capital leases recorded at lower of net present value of minimum lease payments or fair value of leased asset at inception of lease.
 amortization expense computed using straight-line method over shorter of estimated useful lives of assets or period of related lease.
 13.
 accounts payable other current liabilities dec.
 31 , dec.
 31 , millions 2014 2013.

millions                                            | dec . 31 2014 | dec . 312013
--------------------------------------------------- | ------------- | ------------
accounts payable                                    | $ 877         | $ 803
dividends payable                                   | 438           | 356
income and other taxes payable                      | 412           | 491
accrued wages and vacation                          | 409           | 385
accrued casualty costs                              | 249           | 207
interest payable                                    | 178           | 169
equipment rents payable                             | 100           | 96
other                                               | 640           | 579
total accounts payable and othercurrent liabilities | $ 3303        | $ 3086


company financed acquisition with proceeds from $ 1. 0 billion three-year term loan credit facility, $ 1. 5 billion in unsecured notes  issuance of 61 million shares of aon common stock.
 outstanding hewitt stock options converted into options to purchase 4. 5 million shares of aon common stock.
 items detailed in note 9 2018 2018debt 2019 2019 and note 12 2018 2018stockholders 2019 equity 2019.
 transaction accounted for using acquisition method of accounting requires most assets acquired and liabilities assumed be recognized at fair values as of acquisition date.
 following table summarizes preliminary amounts recognized for assets acquired liabilities assumed as of acquisition date.
 certain estimated values not yet finalized subject to change could be.
 company will finalize amounts recognized as information necessary analyses is obtained.
 company expects to finalize amounts as soon as possible no later than one year from acquisition table summarizes preliminary values of assets acquired and liabilities assumed as of acquisition date ( in millions ) : amounts recorded as of acquisition.
 ( 1 ) includes cash and cash equivalents  short-term investments  client receivables other current assets  accounts payable other current liabilities.
 ( 2 ) includes deferred contract costs long-term investments.
 ( 3 ) includes unfavorable lease obligations and deferred contract revenues.
 ( 4 ) included in other current assets ( $ 31 million ) , deferred tax assets ( $ 62 million ) , other current liabilities ( $ 32 million ) deferred tax liabilities ( $ 1. 1 billion ) in company 2019s consolidated statements of financial position.
 acquired customer relationships amortized over weighted average life of 12 years.
technology asset amortized over 7 years trademarks determined to have indefinite useful lives.
 goodwill is calculated as excess of consideration transferred over net assets acquired and represents synergies and other benefits expected to arise from combining operations of hewitt with operations of aon , and future economic benefits arising from other

| amountsrecorded as ofthe acquisitiondate
------------------------------------------- | ----------------------------------------
working capital ( 1 )                       | $ 391
property equipment and capitalized software | 319
identifiable intangible assets:             |
customer relationships                      | 1800
trademarks                                  | 890
technology                                  | 215
other noncurrent assets ( 2 )               | 344
long-term debt                              | 346
other noncurrent liabilities ( 3 )          | 361
net deferred tax liability ( 4 )            | 1035
net assets acquired                         | 2217
goodwill                                    | 2715
total consideration transferred             | $ 4932


2 0 1 9 a n n u a l r e p o r t1 6 performance graph chart presents comparison for five-year period ended june 30 , 2019 of market performance of company 2019s common stock with s&p 500 index and index of peer companies selected by company.
 historic stock price performance not indicative of future stock price performance.
 comparison of 5 year cumulative total return among jack henry & associates , inc. s&p 500 index peer group information depicts line graph with values:.
 comparison assumes $ 100 invested on june 30, 2014 assumes reinvestments of dividends.
 total returns calculated according to market capitalization of peer group members at beginning of each period.
 peer companies selected in providing specialized computer software , hardware related services to financial institutions other businesses.
 some peer participant companies different for fiscal year ended 2019 compared to fiscal year ended 2018.
 company 2019s compensation committee board of directors adjusted peer participants due to consolidations industry during 2019 fiscal year.
 companies in 2019 peer group are aci worldwide , inc. black knight  inc. bottomline technologies . broadridge financial solutions  inc. cardtronics plc ; corelogic . euronet worldwide . exlservice holdings  inc. fair isaac corp. fidelity national information services  inc. fiserv  inc. fleetcor technologies  inc. global payments  inc. square , inc. ss&c technologies holdings  inc. total system services  inc. tyler technologies . verint systems  inc. wex , inc.
 companies in 2018 peer group were aci worldwide , inc. bottomline technology  inc. broadridge financial solutions ; cardtronics  inc. corelogic , inc.euronet worldwide  inc. ; fair isaac corp. ; fidelity national information services . ; fiserv  inc. ; global payments . moneygram international . ss&c technologies holdings. ; total systems services . ; tyler technologies . ; verifone

| 2014   | 2015   | 2016   | 2017   | 2018   | 2019
--------------- | ------ | ------ | ------ | ------ | ------ | ------
jkhy            | 100.00 | 110.51 | 151.12 | 182.15 | 231.36 | 240.29
2019 peer group | 100.00 | 126.23 | 142.94 | 166.15 | 224.73 | 281.09
2018 peer group | 100.00 | 127.40 | 151.16 | 177.26 | 228.97 | 286.22
s&p 500         | 100.00 | 107.42 | 111.71 | 131.70 | 150.64 | 166.33


2011 2012 2013 2014 2015 2016 comparison of five-year cumulative total shareholder return altria group , inc.
 altria peer group s&p 500 part ii item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities.
 performance graph graph compares cumulative total shareholder return of altria group , inc. 2019s common stock last ive years with cumulative total return same period of s&p 500 index and altria group  inc.
 peer group ( 1 ).
 graph assumes investment of $ 100 in common stock each indices market close december 31, 2011 reinvestment of all dividends quarterly basis.
 source : bloomberg - 201ctotal return analysis 201d calculated daily basis assumes reinvestment of dividends ex-dividend date.
 1 ) in 2016  altria group , inc.
 peer group consisted of. s. -headquartered consumer product companies competitors to altria group , inc. 2019s tobacco operating companies subsidiaries selected basis revenue or market capitalization : campbell soup company coca-cola company colgate-palmolive company conagra brands , inc. general mills , inc. hershey company kellogg company kimberly-clark corporation  kraft heinz company mondel 0113z international , inc. pepsico , inc.
 reynolds american inc.
 note october 1 , 2012  kraft foods inc.
 kft spun off kraft foods group , inc.
 to shareholders changed name from kraft foods inc.
 to mondel 0113z international , inc.
 mdlz.
 july 2 , 2015  kraft foods group , inc.
merged with into wholly owned subsidiary of h. j.
 heinz holding corporation renamed kraft heinz company ( khc ).
 on june 12 , 2015  reynolds american inc.
 ( rai ) acquired lorillard .
 ( lo ).
 november 9 , 2016  conagra foods.
 ( cag ) spun off lamb weston holdings.
 ( lw ) to shareholders changed name from conagra foods.
 to conagra brands .
 ( cag ).
 altria altria group .
 group.
 peer group s&p 500

date          | altria group inc . | altria group inc . peer group | s&p 500
------------- | ------------------ | ----------------------------- | --------
december 2011 | $ 100.00           | $ 100.00                      | $ 100.00
december 2012 | $ 111.77           | $ 108.78                      | $ 115.99
december 2013 | $ 143.69           | $ 135.61                      | $ 153.55
december 2014 | $ 193.28           | $ 151.74                      | $ 174.55
december 2015 | $ 237.92           | $ 177.04                      | $ 176.94
december 2016 | $ 286.61           | $ 192.56                      | $ 198.09


changes in performance retention awards during 2009 : shares ( thous. ) weighted-average grant-date fair value.
 at december 31 , 2009 $ 22 million of total unrecognized compensation expense related to nonvested performance retention awards expected to be recognized over period 1. 3 years.
 portion of expense subject to achievement of roic levels for performance stock unit grants.
 5.
 retirement plans pension other postretirement benefits pension plans 2013 provide defined benefit retirement income to eligible non-union employees through qualified and non-qualified ( supplemental ) pension plans.
 qualified pension benefits based on years of service highest compensation during latest years of employment specific reductions for early retirements.
 other postretirement benefits opeb ) 2013 provide defined contribution medical and life insurance benefits for eligible retirees.
 benefits funded as medical claims and life insurance premiums plan amendment effective january 1, 2010 medicare-eligible retirees enrolled in union pacific retiree medical program receive contribution to health reimbursement account used to pay eligible out-of-pocket medical expenses.
 impact of plan amendment reflected in projected benefit obligation ( pbo ) at december 31 , 2009.
 funded status required by gaap to separately recognize overfunded or underfunded status of pension and opeb plans as asset or liability.
 funded status represents difference between pbo and fair value of plan assets.
 pbo is present value of benefits earned to date by plan participants including effect of assumed future salary increases.
 pbo of opeb plan equal to accumulated benefit obligation present value of opeb liabilities not affected by salary increases.
 plan assets measured at fair value.
 use december 31 measurement date for plan assets and obligations for all retirement plans.

| shares ( thous. ) | weighted-averagegrant-date fair value
----------------------------- | ----------------- | -------------------------------------
nonvested at january 1 2009   | 873               | $ 50.70
granted                       | 449               | 47.28
vested                        | -240 ( 240 )      | 43.23
forfeited                     | -22 ( 22 )        | 53.86
nonvested at december 31 2009 | 1060              | $ 50.88


entergy arkansas , inc.
 management financial discussion analysis fuel purchased power expenses increased due to increased recovery of deferred fuel purchased power costs due to increase in april 2004 in energy cost recovery rider true-ups to 2003 and 2002 energy cost recovery rider filings.
 other regulatory credits decreased due to over-recovery of grand gulf costs due to increase in grand gulf rider effective january 2004.
 2003 compared to 2002 net revenue  entergy arkansas' measure of gross margin consists of operating revenues net of fuel , fuel-related  purchased power expenses 2 ) other regulatory credits.
 analysis of change in net revenue comparing 2003 to 2002.
 march 2002 settlement agreement resolved request for recovery of ice storm costs incurred in december 2000 with offset costs for funds to pay for future stranded costs.
 1997 settlement provided for collection of earnings in excess of 11% ( 11 % ) return on equity in transition cost account ( tca ) to offset stranded costs if retail open access implemented.
 mid- late december 2000 two ice storms left 226000 and 212500 entergy arkansas customers without electric power in service area.
 entergy arkansas filed proposal to recover costs plus carrying charges associated with power restoration caused by ice storms.
 final storm damage cost determination reflected costs of approximately $ 195 million.
 apsc approved settlement agreement submitted in march 2002 by entergy arkansas apsc staff arkansas attorney general.
 march 2002 settlement parties agreed $ 153 million of ice storm costs be classified as incremental ice storm expenses be offset against tca on rate class basis excess of ice storm costs over amount available in tca be deferred and amortized over 30 years excess costs not allowed to included as separate component of rate base.
allocated ice storm expenses exceeded available tca funds by $ 15. 8 million recorded as regulatory asset in june 2002.
 in accordance with settlement agreement following apsc's approval of 2001 earnings review related to tca entergy arkansas filed to return $ 18. 1 million of tca to large general service class customers paid more into tca than allocation storm costs.
 apsc approved return of funds to large general service customer class in of refund checks in august 2002.
 implementation march 2002 settlement agreement provisions tca procedure ceased with 2001 earnings evaluation.
 of remaining ice storm costs , $ 32. 2 million addressed through established ratemaking procedures including $ 22. 2 million as capital additions $ 3. 8 million of ice storm costs not recovered through rates.
 effect on net income of march 2002 settlement agreement and 2001 earnings review was a $ 2. 2 million increase in 2003  decrease in net revenue offset by decrease in operation and maintenance expenses discussed.

| ( in millions )
------------------------------- | ----------------
2002 net revenue                | $ 1095.9
march 2002 settlement agreement | -154.0 ( 154.0 )
volume/weather                  | -7.7 ( 7.7 )
asset retirement obligation     | 30.1
net wholesale revenue           | 16.6
deferred fuel cost revisions    | 10.2
other                           | 7.6
2003 net revenue                | $ 998.7


lkq corporation subsidiaries notes to consolidated financial statements continued ) note 5.
 long-term obligations continued ) consideration for business acquisitions completed during 2007 , 2006 2005  issued promissory notes totaling approximately $ 1. 7 million , $ 7. 2 million $ 6. 4 million , respectively.
 notes bear interest at annual rates of 3. 0% ( 3. 0 % ) to 6. 0% ( 6. 0 % )  interest payable at maturity or in monthly installments.
 assumed liabilities with business acquisition during second quarter of 2005 including promissory note with remaining principle balance of approximately $ 0. 2 million.
 annual interest rate on note  retired during 2006 , was note 6.
 commitments contingencies operating leases obligated under noncancelable operating leases for corporate office space , warehouse distribution facilities , trucks certain equipment.
 future minimum lease commitments under leases at december 31, 2007 are as follows ( in thousands ) : years ending december 31:.
 rental expense for operating leases was approximately $ 27. 4 million , $ 18. 6 million $ 12. 2 million during years ended december 31 , 2007 , 2006 2005 .
 guaranty residual values of majority of truck and equipment operating leases.
 residual values decline over lease terms to defined percentage of original cost.
 event lessor does not realize residual value when equipment sold  we responsible for portion of shortfall.
 if lessor realizes more than residual value when equipment sold  be paid amount realized over residual value.
 terminated all operating leases subject to these guaranties at december 31 , 2007  guarantied residual value would have totaled approximately $ 24. 0 million.
litigation related contingencies december 2 , 2005  ford global technologies , llc ( 2018 2018ford 2019 2019 ) filed complaint united states international trade commission ( 2018 2018usitc 2019 2019 ) against keystone five other respondents including four taiwan-based manufacturers.
 december 12 , 2005  ford filed amended complaint.
 both complaint complaint contended keystone other respondents infringed 14 design patents ford alleges cover eight parts 2004-2005

2008                          | $ 42335
----------------------------- | --------
2009                          | 33249
2010                          | 25149
2011                          | 17425
2012                          | 11750
thereafter                    | 28581
future minimum lease payments | $ 158489


2mar201707015999 ( c ) in october 2016, accelerated share repurchase ( 2018 2018asr 2019 2019 ) agreement concluded received additional 44 thousand shares of common stock.
 shares purchased pursuant asr agreement presented in table above periods received.
 performance graph following graph compares performance our common stock with s&p 500 index s&p 500 healthcare equipment index.
 cumulative total return below assumes initial investment of $ 100 at market close december 30, 2011 reinvestment of dividends.
 comparison of 5 year cumulative total return 2011 2012 2016201520142013 edwards lifesciences corporation s&p 500 s&p 500 healthcare equipment index december 31.

total cumulative return            | 2012     | 2013    | 2014     | 2015     | 2016
---------------------------------- | -------- | ------- | -------- | -------- | --------
edwards lifesciences               | $ 127.54 | $ 93.01 | $ 180.17 | $ 223.42 | $ 265.06
s&p 500                            | 116.00   | 153.58  | 174.60   | 177.01   | 198.18
s&p 500 healthcare equipment index | 117.42   | 150.28  | 181.96   | 194.37   | 207.46


goldman sachs group , inc.
 subsidiaries management 2019s discussion analysis operating expenses expenses influenced by compensation  headcount business activity.
 compensation benefits includes salaries  discretionary compensation  amortization of equity awards other items benefits.
 discretionary compensation impacted by net revenues  financial performance labor markets business mix structure of share- based compensation programs external environment.
 see 201cuse of estimates 201d for additional information about expenses from litigation regulatory proceedings.
 table below presents operating expenses and total staff ( includes employees consultants temporary staff ).
 1.
 consists of changes in reserves related to americas reinsurance business including interest credited to policyholder account balances  expenses related to property catastrophe reinsurance claims.
 in april 2013 completed sale of majority stake in americas reinsurance business no longer consolidate this business.
 2.
 includes provisions of $ 3. 37 billion recorded during 2015 for agreement in principle with rmbs working group.
 see note 27 to consolidated financial statements for information about agreement.
 2015 versus 2014.
 operating expenses on consolidated statements of earnings were $ 25. 04 billion for 2015 13% ( 13 % ) higher than 2014.
 compensation and benefits expenses on consolidated statements earnings were $ 12. 68 billion for 2015 unchanged compared with 2014.
 ratio of compensation and benefits to net revenues for 2015 was 37. 5% ( 37. 5 % ) compared with 36. 8% ( 36. 8 % ) for 2014.
 total staff increased 8% ( 8 % ) during 2015 due to activity levels in certain businesses continued investment in regulatory compliance.
 non-compensation expenses on consolidated statements of earnings were $ 12.36 billion for 2015 30% ( 30 % ) higher than 2014 due to higher net provisions for mortgage-related litigation regulatory matters included in other expenses.
 increase partially offset by lower depreciation amortization expenses reflecting lower impairment charges related to consolidated investments reduction in expenses related to sale of metro in fourth quarter of 2014.
 net provisions for litigation regulatory proceedings for 2015 were $ 4. 01 billion compared with $ 754 million for 2014 primarily net provisions for mortgage-related matters ).
 2015 included $ 148 million charitable contribution to goldman sachs gives donor-advised fund.
 compensation reduced to fund charitable contribution.
 firm asks managing directors to make recommendations regarding potential charitable recipients for contribution.
 2014 versus 2013.
 operating expenses on consolidated statements earnings were $ 22. 17 billion for 2014 unchanged compared with 2013.
 compensation and benefits expenses on were $ 12. 69 billion for 2014 unchanged compared with 2013.
 ratio of compensation and benefits to net revenues for 2014 was 36. 8% ( 36. 8 % ) compared with 36. 9% ( 36. 9 % ) for 2013.
 total staff increased 3% ( 3 % ) during 2014.
 non-compensation expenses were $ 9. 48 billion for 2014 4% ( 4 % ) lower than 2013.
 decrease compared with 2013 included decrease in other expenses due to lower net provisions for litigation regulatory proceedings lower operating expenses related to consolidated investments decline in insurance reserves reflecting sale of americas reinsurance business in 2013.
 decreases partially offset by increase in brokerage  clearing  exchange distribution fees.
net provisions for litigation regulatory proceedings for 2014 were $ 754 million compared with $ 962 million 2013 ( primarily net provisions mortgage-related matters ).
 2014 included charitable contribution $ 137 million to goldman sachs gives  donor-advised fund.
 compensation reduced to fund this charitable contribution.
 firm asks managing directors to make recommendations potential charitable recipients for this contribution.
 58 goldman sachs 2015 form 10-k

$ in millions                                    | year ended december 2015 | year ended december 2014 | year ended december 2013
------------------------------------------------ | ------------------------ | ------------------------ | ------------------------
compensation and benefits                        | $ 12678                  | $ 12691                  | $ 12613
brokerage clearing exchange anddistribution fees | 2576                     | 2501                     | 2341
market development                               | 557                      | 549                      | 541
communications and technology                    | 806                      | 779                      | 776
depreciation and amortization                    | 991                      | 1337                     | 1322
occupancy                                        | 772                      | 827                      | 839
professional fees                                | 963                      | 902                      | 930
insurance reserves1                              | 2014                     | 2014                     | 176
other expenses2                                  | 5699                     | 2585                     | 2931
total non-compensation expenses                  | 12364                    | 9480                     | 9856
total operating expenses                         | $ 25042                  | $ 22171                  | $ 22469
total staff at period-end                        | 36800                    | 34000                    | 32900


five-year performance comparison 2013 graph indicator of cumulative total shareholder returns for corporation compared to peer group index ) , dj trans  s&p 500.
 graph assumes $ 100 invested in common stock of union pacific corporation and each index on december 31 , 2009 all dividends reinvested.
 information historical not indicative of future performance.
 purchases of equity securities 2013 during 2014  repurchased 33035204 shares of common stock at average price of $ 100. 24.
 table presents common stock repurchases during each month for fourth quarter of 2014 : period total number of shares purchased average price paid per share total number of shares purchased as part of publicly announced plan or program maximum number of shares may yet be purchased under plan or program.
 total number of shares purchased during quarter includes approximately 15587 shares delivered or attested to upc by employees to pay stock option exercise prices, satisfy excess tax withholding obligations for stock option exercises or vesting of retention units  pay withholding obligations for vesting of retention shares.
 effective january 1 , 2014  board of directors authorized repurchase of up to 120 million shares of common stock by december 31 , 2017.
 repurchases may be made on open market or through other transactions.
 management has sole discretion determining timing and amount of transactions.

period                   | total number ofsharespurchased[a] | averageprice paidpershare | total number of sharespurchased as part of apublicly announcedplan or program [b] | maximum number ofshares that may yetbe purchased under the planor program [b]
------------------------ | --------------------------------- | ------------------------- | --------------------------------------------------------------------------------- | -----------------------------------------------------------------------------
oct . 1 through oct . 31 | 3087549                           | $ 107.59                  | 3075000                                                                           | 92618000
nov . 1 through nov . 30 | 1877330                           | 119.84                    | 1875000                                                                           | 90743000
dec . 1 through dec . 31 | 2787108                           | 116.54                    | 2786400                                                                           | 87956600
total                    | 7751987                           | $ 113.77                  | 7736400                                                                           | n/a


graph shows five-year comparison cumulative shareholder return common stock with cumulative total return standard & poor 2019s ( s&p ) mid cap 400 index russell 1000 index both published indices.
 comparison five-year cumulative total return from december 31 2011 to december 31  2016 assumes $ 100 invested reinvestment dividends period indexed returns.
 2011 2012 2013 2014 2015 2016 smith ( a o ) corp s&p midcap 400 index russell 1000 index

company/index             | baseperiod 12/31/11 | baseperiod 12/31/12 | baseperiod 12/31/13 | baseperiod 12/31/14 | baseperiod 12/31/15 | 12/31/16
------------------------- | ------------------- | ------------------- | ------------------- | ------------------- | ------------------- | --------
a . o . smith corporation | 100.0               | 159.5               | 275.8               | 292.0               | 401.0               | 501.4
s&p mid cap 400 index     | 100.0               | 117.9               | 157.4               | 172.8               | 169.0               | 204.1
russell 1000 index        | 100.0               | 116.4               | 155.0               | 175.4               | 177.0               | 198.4


grand gulf recovery variance due to increased recovery of higher costs from grand gulf uprate.
 volume/weather variance due to effects of favorable weather on residential sales and increase in industrial sales due to growth in refining segment.
 fuel recovery variance due to : 2022 deferral of increased capacity costs recovered through fuel adjustment clauses ; 2022 expiration of evangeline gas contract on january 1, 2013 ; 2022 adjustment to deferred fuel costs recorded in third quarter 2012 in accordance with rate order from puct issued in september 2012.
 see note 2 to financial statements for further discussion of puct order issued in entergy texas's 2011 rate case.
 miso deferral variance due to deferral in april 2013 approved by apsc  of costs incurred since march 2010 related to transition and implementation of joining miso rto.
 decommissioning trusts variance due to lower regulatory credits from higher realized income on decommissioning trust fund investments.
 no effect on net income as credits offset by interest and investment income.
 entergy wholesale commodities following analysis of change in net revenue comparing 2013 to 2012.
 amount ( in millions ).
 table net revenue for entergy wholesale commodities decreased by approximately $ 52 million in 2013 due to : 2022 effect of rising forward power prices on electricity derivative instruments not designated as hedges additional financial power sales conducted in fourth quarter 2013 to offset planned exercise of in-the-money protective call options to lock in margins.
 additional sales did not qualify for hedge accounting treatment increases in forward prices after sales made accounted for majority of negative mark-to-market variance.
 expected underlying transactions will result in earnings in first quarter 2014 as positions settle.
note 16 to financial statements for discussion derivative instruments ; 2022 decrease in net revenue compared to prior year from exercise resupply options for in purchase power agreements entergy wholesale commodities elect to supply power from another source when plant not running.
 amounts related to exercise resupply options included in gwh billed in table below ; entergy corporation subsidiaries management's financial discussion and analysis

| amount ( in millions )
------------------------------ | ----------------------
2012 net revenue               | $ 1854
mark-to-market                 | -58 ( 58 )
nuclear volume                 | -24 ( 24 )
nuclear fuel expenses          | -20 ( 20 )
nuclear realized price changes | 58
other                          | -8 ( 8 )
2013 net revenue               | $ 1802


page 26 of 100 calculation of adjusted net earnings summarized.
 debt facilities refinancing interest-bearing debt at december 31 , 2010 increased $ 216. 1 million to $ 2. 8 billion from $ 2. 6 billion at december 31 , 2009.
 december 2010 ball replaced senior credit facilities due october 2011 with new senior credit facilities due december 2015.
 senior credit facilities bear interest at variable rates include $ 200 million term a loan in.
 dollars  a351 million term b loan in british sterling 20ac100 million term c loan in euros.
 facilities include 1 multi-currency  long-term revolving credit facility company up to approximately $ 850 million 2 ) french multi-currency revolving facility up to $ 150 million.
 revolving credit facilities expire december 2015.
 november 2010  ball issued $ 500 million of new 5. 75 percent senior notes due may 2021.
 net proceeds used to repay borrowings under term d loan facility for general corporate purposes.
 march 2010 ball issued $ 500 million of new 6. 75 percent senior notes due september 2020.
 company issued notice of redemption to call $ 509 million in 6. 875 percent senior notes due december 2012 at redemption price of 101. 146 percent of outstanding principal amount plus accrued interest.
 redemption of bonds occurred april 21, 2010  resulted in charge of $ 8. 1 million for call premium write off of unamortized financing costs and unamortized premiums.
 charge included in 2010 statement of earnings as component of interest expense.
 at december 31 , 2010 approximately $ 976 million available under company 2019s committed multi-currency revolving credit facilities.
 company 2019s prc operations had approximately $ 20 million available under committed credit facility of approximately $ 52 million.
addition to long-term committed credit facilities company had $ 372 million of short-term uncommitted credit facilities available at end of 2010  $ 76. 2 million was outstanding and due on demand approximately $ 175 million of available borrowings under accounts receivable securitization program.
 in october 2010  company renewed receivables sales agreement for one year.
 size of new program will vary between maximum $ 125 million for settlement dates in january through april and maximum $ 175 million for settlement dates in remaining months.
 given free cash flow projections and unused credit facilities available until december 2015, liquidity strong expected to meet ongoing operating cash flow and debt service requirements.
 recent financial economic conditions raised concerns about credit risk with counterparties to derivative transactions , company mitigates exposure by spreading risk among various counterparties limiting exposure to any one party.
 monitor credit ratings of suppliers , customers  lenders and counterparties regular basis.
 in compliance with all loan agreements at december 31 , 2010  and all prior years met all debt payment obligations.
 u. s.
 note agreements , bank credit agreement and industrial development revenue bond agreements contain restrictions relating to dividends , investments  financial ratios  guarantees incurrence of additional indebtedness.
 additional details about debt and receivables sales agreements available in notes 12 and 6  accompanying consolidated financial statements within item 8 of report.

( $ in millions except per share amounts )                   | 2010             | 2009           | 2008
------------------------------------------------------------ | ---------------- | -------------- | ------------
net earnings attributable to ball corporation as reported    | $ 468.0          | $ 387.9        | $ 319.5
discontinued operations net of tax                           | 74.9             | 2.2            | -4.6 ( 4.6 )
business consolidation activities net of tax                 | -9.3 ( 9.3 )     | 13.0           | 27.1
gains and equity earnings related to acquisitions net of tax | -105.9 ( 105.9 ) | 2212           | 2212
gain on dispositions net of tax                              | 2212             | -30.7 ( 30.7 ) | -4.4 ( 4.4 )
debt refinancing costs net of tax                            | 5.3              | 2212           | 2212
adjusted net earnings                                        | $ 433.0          | $ 372.4        | $ 337.6
per diluted share from continuing operations as reported     | $ 2.96           | $ 2.05         | $ 1.62
per diluted share as adjusted                                | 2.36             | 1.96           | 1.74


straight-line or accelerated basis.
 amortization expense for intangibles was approximately $ 4. 2 million , $ 4. 1 million and $ 4. 1 million during years ended december 31 , 2010 , 2009 and 2008  respectively.
 estimated annual amortization expense of december 31 , 2010 balance for years ended december 31 , 2011 through 2015 is approximately $ 4. 8 million.
 impairment of long-lived assets reviewed for possible impairment whenever events circumstances indicate carrying amount assets may not be recoverable.
 if review not recoverable carrying amount assets reduced to fair value.
 during year ended december 31 , 2010 recognized impairment charges on certain long-lived assets during normal course of business of $ 1. 3 million.
 no adjustments to carrying value of long-lived assets of continuing operations during years ended december 31 , 2009 or 2008.
 fair value of financial instruments debt is reflected on balance sheet at cost.
 market conditions as of december 31 , 2010  fair value of term loans ( note 5 , 201clong-term obligations 201d ) approximated carrying value of $ 590 million.
 at december 31 , 2009  fair value of term loans at $ 570 million was below carrying value of $ 596 million because interest rate margins below rate available in market.
 estimated fair value of term loans by calculating upfront cash payment market participant require to assume obligations.
 upfront cash payment excluding issuance costs is amount market participant able to lend at december 31 , 2010 and 2009 to entity with credit rating similar to achieve sufficient cash inflows to cover scheduled cash outflows under term loans.
 carrying amounts of cash and equivalents , net trade receivables and accounts payable approximate fair value.
apply market income approaches to value financial assets liabilities , include cash surrender value of life insurance , deferred compensation liabilities interest rate swaps.
 required fair value disclosures included in note 7, 201cfair value measurements. 201d product warranties some salvage mechanical products sold with standard six-month warranty against defects.
 additionally some remanufactured engines sold with standard three-year warranty against defects.
 record estimated warranty costs at time of sale using historical warranty claim information to project future warranty claims activity related expenses.
 changes in warranty reserve as follows ( in thousands ) :.
 self-insurance reserves self-insure portion of employee medical benefits under terms employee health insurance program.
 purchase certain stop-loss insurance to limit liability exposure.
 also self-insure portion of

balance as of january 1 2009   | $ 540
------------------------------ | --------------
warranty expense               | 5033
warranty claims                | -4969 ( 4969 )
balance as of december 31 2009 | 604
warranty expense               | 9351
warranty claims                | -8882 ( 8882 )
business acquisitions          | 990
balance as of december 31 2010 | $ 2063


entergy new orleans , inc.
 and subsidiaries management 2019s financial discussion analysis receivables from money pool were as follows as of december 31 for each following years.
 see note 4 to financial statements for description of money pool.
 entergy new orleans has credit facility $ 25 million scheduled to expire in november 2018.
 credit facility allows to issue letters of credit against $ 10 million of borrowing capacity facility.
 as of december 31 , 2016  no cash borrowings $ 0. 8 million letter of credit outstanding under facility.
 entergy new orleans party to uncommitted letter of credit facility to post collateral to support obligations miso.
 as of december 31 , 2016  $ 6. 2 million letter of credit outstanding under entergy new orleans 2019s letter of credit facility.
 see note 4 to financial statements for additional discussion of credit facilities.
 entergy new orleans obtained authorization from ferc through october 2017 for short-term borrowings not to exceed aggregate amount $ 100 million any time outstanding.
 see note 4 to financial statements for further discussion of entergy new orleans 2019s short-term borrowing limits.
 long-term securities issuances entergy limited to amounts authorized by city council current authorization extends through june 2018.
 state local rate regulation rates entergy new orleans charges for electricity and natural gas influence financial position, results of operations  liquidity.
 entergy new orleans is regulated rates charged to customers determined in regulatory proceedings.
 governmental agency , city council , primarily responsible for approval of rates charged to customers.
 retail rates see 201calgiers asset transfer 201d below for discussion of transfer from entergy louisiana to entergy new orleans of certain assets serve algiers customers.
march 2013 entergy louisiana filed rate case for algiers area in new orleans regulated by city council.
 entergy requested rate increase $ 13 million over three years including 10. 4% ( 10. 4 % ) return on common equity formula rate plan mechanism identical to lpsc request.
 january 2014 city council advisors filed direct testimony recommending rate increase $ 5. 56 million over three years including 8. 13% ( 8. 13 % ) return on common equity.
 june 2014 city council unanimously approved settlement includes : 2022 $ 9. 3 million base rate revenue increase phased in levelized basis over four years ; 2022 recovery of additional $ 853 thousand annually through miso recovery rider ; 2022 adoption of four-year formula rate plan requiring filing annual evaluation reports in may each year commencing may 2015 resulting rates implemented in october each year.
 formula rate plan includes midpoint target authorized return on common equity of 9. 95% ( 9. 95 % ) with +/- 40 basis point bandwidth.
 rate increase effective with bills rendered on and after first billing cycle of july 2014.
 additional compliance filings made with city council in october 2014 for approval of form of certain rate riders including ninemile 6 non-fuel cost recovery interim rider  allowing for contemporaneous recovery of capacity

2016             | 2015             | 2014             | 2013
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 14215          | $ 15794          | $ 442            | $ 4737


human capital management strategic imperative entergy engaged in strategic to optimize organization through process human capital management.
 in july 2013 management completed comprehensive review of entergy 2019s organization design processes.
 effort resulted in new internal organization structure resulted in elimination of approximately 800 employee positions.
 entergy incurred approximately $ 110 million in costs in 2013 associated with phase human capital management  primarily implementation costs  severance expenses  pension curtailment losses  special termination benefits expense corporate property , plant  equipment impairments.
 in december 2013 entergy deferred for future recovery approximately $ 45 million of costs approved by apsc and lpsc.
 see note 2 to financial statements for details deferrals note 13 financial statements for restructuring charges.
 liquidity and capital resources section discusses entergy 2019s capital structure  capital spending plans other uses of capital  sources of capital  cash flow activity in cash flow statement.
 capital structure entergy 2019s capitalization balanced between equity and debt  shown in following table.
 calculation excludes arkansas , louisiana, texas securitization bonds  non-recourse to entergy arkansas louisiana texas.
 net debt consists of debt less cash and cash equivalents.
 debt consists of notes payable and commercial paper , capital lease obligations  long-term debt  including currently maturing portion.
 capital consists of debt , common shareholders 2019 equity  subsidiaries 2019 preferred stock without sinking fund.
 net capital consists of capital less cash and cash equivalents.
entergy uses debt to capital ratios excluding securitization bonds in analyzing financial condition believes provide useful information to investors creditors evaluating 2019s financial condition securitization bonds are non-recourse to entergy  described in note 5 to financial statements.
 entergy uses net debt to net capital ratio excluding securitization bonds analyzing financial condition believes provides useful information to investors creditors net debt indicates entergy 2019s outstanding debt position not satisfied by cash and cash equivalents on hand.
 long-term debt  including currently maturing portion makes up most of entergy 2019s total debt outstanding.
 entergy 2019s long-term debt principal maturities and estimated interest payments as of december 31 , 2013.
 to estimate future interest payments for variable rate debt  entergy used rate as of december 31 , 2013.
 amounts below include payments on entergy louisiana and system energy sale-leaseback transactions included in long-term debt on balance sheet.
 entergy corporation and subsidiaries management's financial discussion and analysis

| 2013               | 2012
------------------------------------------------------------ | ------------------ | ------------------
debt to capital                                              | 57.9% ( 57.9 % )   | 58.7% ( 58.7 % )
effect of excluding securitization bonds                     | ( 1.6% ( 1.6 % ) ) | ( 1.8% ( 1.8 % ) )
debt to capital excluding securitization bonds ( a )         | 56.3% ( 56.3 % )   | 56.9% ( 56.9 % )
effect of subtracting cash                                   | ( 1.5% ( 1.5 % ) ) | ( 1.1% ( 1.1 % ) )
net debt to net capital excluding securitization bonds ( a ) | 54.8% ( 54.8 % )   | 55.8% ( 55.8 % )


management 2019s priorities management re-evaluated priorities following appointment new ceo in september 2011.
 management focused on priorities : 2022 execution of geographic concentration strategy to maximize shareholder value through disciplined capital allocation including 2022 platform expansion in brazil chile colombia united states 2022 platform development in turkey  poland united kingdom corporate debt reduction return of capital to shareholders intent to initiate dividend in 2012 ; 2022 closing sales of businesses for signed agreements with counterparties exiting non-strategic markets ; 2022 optimizing profitability of operations in existing portfolio 2022 integration of dpl into portfolio implementing management realignment of businesses under two business lines : utilities and generation achieving cost savings through alignment of overhead costs with business requirements systems automation optimal allocation of business development spending ; 2022 completion of approximately 2400 mw construction program integration of new projects into existing businesses.
 during year ended december 31, 2011 projects commenced commercial operations : project location fuel aes equity interest ( percent , rounded ) aes solar ( 1 ).
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 solar 62 50% ( 50 % ).
 trinidad ( 3 ).
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 gas 394 10% ( 10 % ) ( 1 ) aes solar energy ltd.
 joint venture with riverstone holdings accounted for as equity method investment.
plants came online during year include : kalipetrovo ugento soemina francavilla fontana  latina  cocomeri  francofonte scopeto  sabaudia  aprilla-1  siracusa 1-3 complex  manduria apollo rinaldone.
 ( 2 ) joint venture with i. c.
 energy.
 ( 3 ) equity method investment by aes.
 key trends uncertainties operations continue face risks as discussed in item 1a. 2014risk factors of form 10-k.
 challenges described below in 201ckey drivers of results in 2011 201d.
 continue monitor operations address challenges arise.
 operations in august 2010 esti power plant , 120 mw run-of-river hydroelectric power plant in panama taken offline due to damage to tunnel infrastructure.
 aes panama partially covered for business

project         | location | fuel  | gross mw | aes equity interest ( percent rounded )
--------------- | -------- | ----- | -------- | ---------------------------------------
aes solar ( 1 ) | various  | solar | 62       | 50% ( 50 % )
angamos         | chile    | coal  | 545      | 71% ( 71 % )
changuinola     | panama   | hydro | 223      | 100% ( 100 % )
kumkoy ( 2 )    | turkey   | hydro | 18       | 51% ( 51 % )
laurel mountain | us-wv    | wind  | 98       | 100% ( 100 % )
maritza         | bulgaria | coal  | 670      | 100% ( 100 % )
sao joaquim     | brazil   | hydro | 3        | 24% ( 24 % )
trinidad ( 3 )  | trinidad | gas   | 394      | 10% ( 10 % )


edwards lifesciences corporation notes consolidated financial statements 13.
 common stock company maintains nonemployee directors stock incentive compensation program ( 2018 2018nonemployee directors program 2019 ).
 under upon director 2019s initial election to board director receives initial grant of stock options or restricted stock units equal to fair market value on grant date of $ 0. 2 million  not to exceed 20000 shares.
 grants vest over three years from date of grant subject to director 2019s continued service.
 annually each nonemployee director may receive up to 40000 stock options or 16000 restricted stock units of company 2019s common stock  or combination no may total value of combined annual award exceed $ 0. 2 million.
 grants vest over one year from date of grant.
 under nonemployee directors program aggregate of 2. 8 million shares of company 2019s common stock authorized for issuance.
 company has employee stock purchase plan for united states employees and plan for international employees ( collectively 2018 2018espp 2019 2019 ).
 under espp  eligible employees may purchase shares of company 2019s common stock at 85% ( 85 % ) of lower of fair market value of edwards lifesciences common stock on effective date of subscription or date of purchase.
 under espp  employees can authorize company to withhold up to 12% ( 12 % ) of compensation for common stock purchases subject to certain limitations.
 espp available to all active employees company paid from united states payroll and to eligible employees company outside united states to extent permitted by local law.
 espp for united states employees qualified under section 423 of internal revenue code.
 number of shares of common stock authorized for issuance under espp was 13. 8 million shares.
fair value of each option award and employee stock purchase subscription estimated on date of grant using black-scholes option valuation model uses assumptions in following tables.
 risk-free interest rate estimated using u. s.
 treasury yield curve based on expected term of award.
 expected volatility estimated based on blend of weighted-average of historical volatility of edwards lifesciences 2019 stock and implied volatility from traded options on edwards lifesciences 2019 stock.
 expected term of awards granted estimated from vesting period of award, historical exercise behavior , represents period of time that awards granted expected to be outstanding.
 company uses historical data to estimate forfeitures estimated annual forfeiture rate of 6. 0% ( 6. 0 % ).
 black-scholes option pricing model used with following weighted-average assumptions for options granted during following periods : option awards.

| 2016           | 2015           | 2014
------------------------------- | -------------- | -------------- | --------------
average risk-free interest rate | 1.1% ( 1.1 % ) | 1.4% ( 1.4 % ) | 1.5% ( 1.5 % )
expected dividend yield         | none           | none           | none
expected volatility             | 33% ( 33 % )   | 30% ( 30 % )   | 31% ( 31 % )
expected life ( years )         | 4.5            | 4.6            | 4.6
fair value per share            | $ 31.00        | $ 18.13        | $ 11.75