company consolidates assets liabilities of several entities from it leases office buildings corporate aircraft.
 these entities determined to be variable interest entities company determined primary beneficiary of these entities.
 due to consolidation entities company reflects in balance sheet : property , plant equipment of $ 156 million and $ 183 million , other assets of $ 14 million and $ 12 million , long-term debt of $ 150 million ( including current maturities of $ 6 million ) and $ 192 million ( including current maturities of $ 8 million )  minority interest liabilities of $ 22 million and $ 6 million, other accrued liabilities of $ 1 million and $ 0, as of may 27 , 2007 and may 28 , 2006 , respectively.
 liabilities recognized result consolidating entities do not represent additional claims on general assets company.
 creditors entities have claims only on assets of specific variable interest entities.
 obligations commitments ongoing operations company enters into arrangements obligate company to make future payments under contracts debt agreements , lease agreements  unconditional purchase obligations (. obligations to transfer funds future for fixed minimum quantities of goods services at fixed minimum prices-or-pay contracts ).
 unconditional purchase obligation arrangements entered into by company in normal course of business in to ensure adequate levels of sourced product available to company.
 capital lease debt obligations  totaled $ 3. 6 billion at may 27 , 2007 , currently recognized as liabilities in company 2019s consolidated balance sheet.
 operating lease obligations unconditional purchase obligations  totaled $ 645 million at may 27 , 2007 , not recognized as liabilities in company 2019s consolidated balance sheet  in accordance with generally accepted accounting principles.
summary of company 2019s contractual obligations at end of fiscal 2007 ( including obligations discontinued operations ) :.
 company 2019s total obligations of approximately $ 4. 2 billion reflect decrease of approximately $ 237 million from 2019s 2006 fiscal year-end.
 decrease due primarily to reduction of lease obligations sale of packaged meats operations.
 company also contractually obligated to pay interest on long-term debt obligations.
 weighted average interest rate of long-term debt obligations outstanding as of may 27, 2007 was approximately 7. 2%.

( $ in millions ) contractual obligations | ( $ in millions ) total | ( $ in millions ) less than 1 year | ( $ in millions ) 1-3 years | ( $ in millions ) 3-5 years | after 5 years
----------------------------------------- | ----------------------- | ---------------------------------- | --------------------------- | --------------------------- | -------------
long-term debt                            | $ 3575.4                | $ 18.2                             | $ 48.5                      | $ 1226.9                    | $ 2281.8
lease obligations                         | 456.6                   | 79.4                               | 137.3                       | 92.4                        | 147.5
purchase obligations                      | 188.4                   | 57.5                               | 69.0                        | 59.0                        | 2.9
total                                     | $ 4220.4                | $ 155.1                            | $ 254.8                     | $ 1378.3                    | $ 2432.2


company files income tax returns in u.
 federal jurisdiction  various states foreign jurisdictions.
 with few exceptions company no longer subject to u.
 federal , state local or non-u. s.
 income tax examinations by tax authorities for years before 1999.
 anticipated examination for company 2019s.
 income tax returns for years 2002 through 2004 be completed by end of first quarter 2008.
 as of december 31 , 2007  irs has proposed adjustments to company 2019s tax positions for company fully reserved.
 payments relating to proposed assessments from 2002 through 2004 audit may not be made until final agreement reached between company and irs on assessments or final resolution from administrative appeals process or judicial action.
 in addition to.
 federal examination limited audit activity in several u. s.
 state and foreign jurisdictions.
 company expects liability for unrecognized tax benefits to change by insignificant amount during next 12 months.
 company adopted provisions of fasb interpretation no.
 48 , 201caccounting for uncertainty in income taxes  201d on january 1 , 2007.
 result of implementation interpretation 48  company recognized immaterial increase in liability for unrecognized tax benefits accounted for as reduction to january 1, 2007 balance of retained earnings.
 reconciliation of beginning and ending amount of gross unrecognized tax benefits ( 201cutb 201d ) is as follows : ( millions ) federal , state  foreign tax.
 total amount of unrecognized tax benefits that if recognized would affect effective tax rate as of january 1 , 2007 and december 31 , 2007  respectively  are $ 261 million and $ 334 million.
 ending net utb results from adjusting gross balance at december 31 , 2007 for items federal , state  and non-u..
 deferred items , interest and penalties  deductible taxes.
 net utb included as components of accrued income taxes and other liabilities within consolidated balance sheet.
 company recognizes interest and penalties accrued related to unrecognized tax benefits in tax expense.
 at january 1 , 2007 and december 31, 2007, accrued interest and penalties gross basis were $ 65 million and $ 69 million , respectively.
 included in these interest and penalty amounts is interest penalties related to tax positions for which ultimate deductibility is highly certain but for uncertainty about timing of deductibility.
 of impact of deferred tax accounting disallowance of shorter deductibility period would not affect annual effective tax rate but accelerate payment of cash to taxing authority to earlier period.
 in 2007  company completed preparation and filing of 2006 u. s.
 federal and state income tax returns  not result in material changes to company 2019s financial position.
 in 2006  audit of company 2019s u. s.
 tax returns for years through 2001 completed.
 company and internal revenue service reached final settlement for these years including agreement on amount of refund claim to be filed by company.
 company resolved audits in certain european countries.
 in company completed preparation and filing of 2005 u.
 federal income tax return and corresponding 2005 state income tax returns.
 adjustments from amounts previously estimated in.
 federal and state income tax returns ( positive and negative ) included lower.
 taxes on dividends received from company's foreign subsidiaries.
 company made quarterly adjustments ( positive and negative ) to reserves for tax contingencies.
considering developments noted above other factors  including impact on open audit years recent resolution of issues in various audits , reassessments resulted in reduction of reserves in 2006 by $ 149 million , inclusive of expected amount certain refund claims.
 in 2005  company announced intent to reinvest $ 1. 7 billion foreign earnings in united states pursuant to provisions american jobs creation act of 2004.
 act provided company opportunity to tax-

( millions )                                                 | federal state and foreign tax
------------------------------------------------------------ | -----------------------------
gross utb balance at january 1 2007                          | $ 691
additions based on tax positions related to the current year | 79
additions for tax positions of prior years                   | 143
reductions for tax positions of prior years                  | -189 ( 189 )
settlements                                                  | -24 ( 24 )
reductions due to lapse of applicable statute of limitations | -20 ( 20 )
gross utb balance at december 31 2007                        | $ 680
net utb impacting the effective tax rate at december 31 2007 | $ 334


areas exceeding 14. 1 million acres ( 5. 7 million hectares ).
 products and brand designations in are trademarks of international paper or related company.
 industry segment results industrial packaging demand for correlated with non-durable industrial goods production demand for processed foods poultry meat agricultural products.
 to prices volumes major factors affecting profitability of industrial packaging are raw material and energy costs freight costs manufacturing efficiency product mix.
 industrial packaging net sales and operating profits include results of temple-inland packaging operations from acquisition february 2012 and results brazil packaging business from acquisition january 2013.
 due to acquisition of majority share of olmuksa international paper ambalaj sanayi ticaret. now called olmuksan international paper net sales for corrugated packaging business in turkey included in business segment totals beginning first quarter of 2013 operating profits reflect higher ownership percentage than previous years.
 net sales for 2013 increased 12% ( 12 % ) to $ 14. 8 billion compared with $ 13. 3 billion in 2012 42% ( 42 % ) compared with $ 10. 4 billion in 2011.
 operating profits 69% ( 69 % ) higher in 2013 than 2012 and 57% ( 57 % ) higher than in 2011.
 excluding costs associated with acquisition and integration of temple-inland divestiture of three containerboard mills other special items operating profits in 2013 were 36% ( 36 % ) higher than 2012 and 59% ( 59 % ) higher than in 2011.
 benefits from impact of higher average sales price realizations unfavorable mix ( $ 749 million ) offset by lower sales volumes ( $ 73 million ) higher operating costs ( $ 64 million ) higher maintenance outage costs ( $ 16 million ) higher input costs ( $ 102 million ).
operating profits in 2013 include costs $ 62 million with integration of temple-inland gain $ 13 million to bargain purchase adjustment on acquisition of majority share operations in turkey net gain of $ 1 million for other items operating profits 2012 included costs $ 184 million with acquisition and integration of temple-inland mill divestiture costs $ 91 million costs restructuring of european packaging business $ 17 million $ 3 million gain for other items.
 industrial packaging.
 north american industrial packaging net sales were $ 12. 5 billion in 2013 compared with $ 11. 6 billion in 2012 $ 8. 6 billion in 2011.
 operating profits in 2013 were $ 1. 8 billion ( including and excluding costs integration of temple-inland and other special items ) compared with $ 1. 0 billion ( $ 1. 3 billion excluding costs acquisition integration temple-inland and mill divestiture costs ) in 2012 and $ 1. 1 billion ( including excluding costs signing agreement to acquire temple-inland ) in 2011.
 sales volumes decreased in 2013 compared with 2012 reflecting flat demand for boxes impact of commercial decisions.
 average sales price realizations higher due to price increases for domestic containerboard and boxes.
 input costs higher for wood  energy recycled fiber.
 freight costs increased.
 planned maintenance downtime costs higher than 2012.
 manufacturing operating costs decreased offset by inflation higher overhead and distribution costs.
 business took about 850000 tons of total downtime in 2013 450000 were market- related and 400000 were maintenance downtime.
 in 2012 business took about 945000 tons of total downtime 580000 were market-related 365000 were maintenance downtime.
 operating profits 2013 included $ 62 million of costs integration of temple-inland.
operating profits 2012 included $ 184 million costs with acquisition integration of temple-inland $ 91 million costs with divestiture of three containerboard mills.
 looking ahead to 2014 , compared with fourth quarter 2013, sales volumes first quarter expected to increase for boxes due to higher number shipping days offset by impact severe winter weather events impacting u. s.
 input costs expected higher for energy recycled fiber  wood starch.
 planned maintenance downtime spending expected about $ 51 million higher with outages scheduled at six mills compared with four mills in 2013 fourth quarter.
 manufacturing operating costs expected to be lower.
 operating profits negatively impacted by adverse winter weather first quarter of 2014.
 emea industrial packaging net sales in 2013 include sales packaging operations in turkey now fully consolidated.
 net sales were $ 1. 3 billion in 2013 compared with $ 1. 0 billion in 2012 $ 1. 1 billion in 2011.
 operating profits 2013 were $ 43 million ( $ 32

in millions      | 2013    | 2012    | 2011
---------------- | ------- | ------- | -------
sales            | $ 14810 | $ 13280 | $ 10430
operating profit | 1801    | 1066    | 1147


entergy new orleans , inc.
 management 2019s financial discussion analysis plan to spin off utility 2019s transmission business see 201cplan to spin off utility 2019s transmission business 201d section of entergy corporation subsidiaries management 2019s financial discussion analysis for matter including planned retirement of debt and preferred securities.
 results operations net income 2011 compared to 2010 net income increased $ 4. 9 million due to lower operation maintenance expenses  lower taxes income taxes lower effective income tax rate lower interest expense  offset by lower net revenue.
 2010 compared to 2009 net income remained unchanged increasing $ 0. 6 million  due to higher net revenue lower interest expense offset by higher operation maintenance expenses higher taxes income taxes lower other income higher depreciation amortization expenses.
 net revenue 2011 compared to 2010 net revenue consists of operating revenues net of 1 fuel , fuel-related expenses  gas purchased for resale  2 purchased power expenses  3 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2011 to 2010.
 amount ( in millions ).
 retail electric price variance due to formula rate plan decreases effective october 2010 october 2011.
 see note 2 to financial statements for discussion formula rate plan filing.
 net gas revenue variance due to milder weather in 2011 compared 2010.
 gas cost recovery asset variance due to recognition in 2010 of $ 3 million gas operations regulatory asset associated with settlement of entergy new orleans 2019s electric and gas formula rate plan case amortization of asset.
 see note 2 to financial statements for additional discussion of formula rate plan settlement.

| amount ( in millions )
----------------------- | ----------------------
2010 net revenue        | $ 272.9
retail electric price   | -16.9 ( 16.9 )
net gas revenue         | -9.1 ( 9.1 )
gas cost recovery asset | -3.0 ( 3.0 )
volume/weather          | 5.4
other                   | -2.3 ( 2.3 )
2011 net revenue        | $ 247.0


goldman sachs group , inc.
 subsidiaries management 2019s discussion analysis commissions fees consolidated statements earnings were $ 3. 20 billion for 2018 , 5% ( 5 % ) higher than 2017  reflecting increase in listed cash equity futures volumes consistent with market volumes.
 market making revenues consolidated earnings were $ 9. 45 billion for 2018 , 23% ( 23 % ) higher than 2017  due to higher revenues in equity products interest rate products commodities.
 increases offset by lower results in mortgages lower revenues in credit products.
 other principal transactions revenues earnings were $ 5. 82 billion for 2018  2% ( 2 % ) lower than 2017 reflecting net losses from investments in public equities compared with net gains prior year offset by higher net gains from investments in private equities driven by company-specific events sales corporate performance.
 net interest income.
 consolidated earnings was $ 3. 77 billion for 2018 , 28% ( 28 % ) higher than 2017  increase interest income due to impact of higher interest rates on collateralized agreements  other interest-earning assets deposits with banks increases in total average loans receivable financial instruments owned  higher yields on financial instruments owned loans receivable.
 increase in interest income partially offset by higher interest expense due to impact of higher interest rates on other interest-bearing liabilities  collateralized financings deposits long-term borrowings increases in total average long-term borrowings deposits.
 see 201cstatistical disclosures 2014 distribution of assets  liabilities shareholders 2019 equity 201d for further information sources of net interest income.
 2017 versus 2016 net revenues consolidated statements earnings were $ 32.73 billion for 2017  6% ( 6 % ) higher than 2016 due to higher other principal transactions revenues higher investment banking revenues  investment management revenues net interest income.
 increases partially offset by lower market making revenues lower commissions and fees.
 non-interest revenues.
 investment banking revenues consolidated statements earnings were $ 7. 37 billion for 2017  18% ( 18 % ) higher than 2016.
 revenues in financial advisory higher compared with 2016  reflecting increase in completed mergers and acquisitions transactions.
 revenues in underwriting higher compared with 2016 due to higher revenues in debt underwriting increase industry-wide leveraged finance activity equity underwriting  increase in industry-wide secondary offerings.
 investment management revenues consolidated earnings were $ 5. 80 billion for 2017 7% ( 7 % ) higher than 2016 due to higher management and other fees higher average assets under supervision higher transaction revenues.
 commissions and fees in consolidated statements earnings were $ 3. 05 billion for 2017 5% ( 5 % ) lower than 2016  reflecting decline in listed cash equity volumes.
 market volumes.
 declined.
 market making revenues in consolidated statements earnings were $ 7. 66 billion for 2017  23% ( 23 % ) lower than 2016 due to lower revenues in commodities currencies  credit products  interest rate products equity derivative products.
 results partially offset by higher revenues in equity cash products improved results in mortgages.
 other principal transactions revenues in consolidated statements earnings were $ 5. 91 billion for 2017  75% ( 75 % ) higher than 2016  reflecting significant increase in net gains from private equities positively impacted by company-specific events corporate performance.
net gains from public equities higher as global equity prices increased year.
 net interest income.
 in consolidated statements of earnings was $ 2. 93 billion for 2017 , 13% ( 13 % ) higher than 2016  reflecting increase interest income due to higher interest rates on collateralized agreements higher interest income from loans receivable due to higher yields increase in total average loans receivable increase in total average financial instruments owned impact of higher interest rates on other interest-earning assets and deposits with banks.
 increase in interest income partially offset by higher interest expense due to impact higher interest rates on other interest-bearing liabilities increase in total average long-term borrowings impact of higher interest rates on interest-bearing deposits short-term borrowings collateralized financings.
 see 201cstatistical disclosures 2014 distribution of assets  liabilities shareholders 2019 equity 201d for information about sources of net interest income.
 provision for credit losses provision consists of provision for credit losses on loans receivable lending commitments for investment.
 see note 9 to consolidated financial statements for information about provision for credit losses.
 table below presents provision for credit losses.
 goldman sachs 2018 form 10-k 53

$ in millions               | year ended december 2018 | year ended december 2017 | year ended december 2016
--------------------------- | ------------------------ | ------------------------ | ------------------------
provision for credit losses | $ 674                    | $ 657                    | $ 182


results operations year ended december 31 2018 compared to 2017 net revenues increased $ 203. 9 million  or 4. 1% ( 4. 1 % )  to $ 5193. 2 million in 2018 from $ 4989. 2 million 2017.
 net revenues by product category summarized.
 increase net sales driven by 2022 apparel unit sales growth train category 2022 footwear unit sales growth led by run category.
 increase offset by sales decline in accessories.
 license revenues increased $ 8. 2 million  or 7. 0% ( 7. 0 % ) to $ 124. 8 million in 2018 from $ 116. 6 million 2017.
 connected fitness revenue increased $ 18. 5 million  or 18. 1% ( 18. 1 % ) to $ 120. 4 million in 2018 from $ 101. 9 million 2017 driven by increased subscribers on fitness applications.
 gross profit increased $ 89. 1 million to $ 2340. 5 million in 2018 from $ 2251. 4 million in 2017.
 gross profit percentage of net revenues margin unchanged at 45. 1% ( 45. 1 % ) in 2018 compared to 2017.
 gross profit percentage impacted by lower promotional activity improvements product cost lower air freight higher proportion international and connected fitness revenue changes in foreign currency impacts offset by channel mix higher sales to off-price channel restructuring related charges.
 exception improvements product input costs air freight improvements not expect trends to material impact on full year 2019.
 selling  general and administrative expenses increased $ 82. 8 million to $ 2182. 3 million in 2018 from $ 2099. 5 million in 2017.
 net revenues general administrative expenses decreased slightly to 42. 0% ( 42. 0 % ) in 2018 from 42. 1% ( 42. 1 % ) in 2017.
 selling general administrative expense impacted by 2022 marketing costs decreased $ 21.3 million to $ 543. 8 million in 2018 from $ 565. 1 million 2017.
 decrease due to restructuring efforts lower compensation contractual sports marketing.
 decrease offset by higher costs brand marketing campaigns increased marketing investments growth international business.
 net revenues marketing costs decreased to 10. 5% (. 5 % ) in 2018 from 11. 3% (. 3 % ) 2017.
 2022 other costs increased $ 104. 1 million to $ 1638. 5 million in 2018 from $ 1534. 4 million in 2017.
 increase due to higher incentive compensation expense higher costs for expansion of direct to consumer distribution channel international business.
 net revenues other costs increased to 31. 6% ( 31. 6 % ) in 2018 from 30. 8% ( 30. 8 % ) in 2017.
 restructuring and impairment charges increased $ 59. 1 million to $ 183. 1 million from $ 124. 0 million in 2017.
 restructuring plans section.
 income ( loss ) from operations decreased $ 52. 8 million  or 189. 9% ( 189. 9 % ) to loss $ 25. 0 million in 2018 from income $ 27. 8 million in 2017.
 net revenues income from operations decreased to loss of 0. 4% ( 0. 4 % ) in 2018 from income 0. 5% ( 0. 5 % ) in 2017.
 income from operations year ended december 31, 2018 negatively impacted by $ 203. 9 million of restructuring  impairment related charges with 2018 restructuring plan.
 income from operations year ended december 31, 2017 negatively impacted by $ 129. 1 million of restructuring  impairment related charges 2017 restructuring plan.
 net decreased $ 0. 9 million to $ 33. 6 million in 2018 from $ 34. 5 million in 2017.

( in thousands )   | year ended december 31 , 2018 | year ended december 31 , 2017 | year ended december 31 , $ change | year ended december 31 , % (  % ) change
------------------ | ----------------------------- | ----------------------------- | --------------------------------- | ----------------------------------------
apparel            | $ 3462372                     | $ 3287121                     | $ 175251                          | 5.3% ( 5.3 % )
footwear           | 1063175                       | 1037840                       | 25335                             | 2.4
accessories        | 422496                        | 445838                        | -23342 ( 23342 )                  | -5.2 ( 5.2 )
total net sales    | 4948043                       | 4770799                       | 177244                            | 3.7
license            | 124785                        | 116575                        | 8210                              | 7.0
connected fitness  | 120357                        | 101870                        | 18487                             | 18.1
total net revenues | $ 5193185                     | $ 4989244                     | $ 203941                          | 4.1% ( 4.1 % )


2022 secondary market same store communities are generally communities in markets with populations more than 1 million but less than 1% ( 1 % ) of total public multifamily reit units or markets populations less than 1 million we owned and stabilized for at least full 12 months.
 2022 non-same store communities other includes recent acquisitions , communities in development or lease-up , communities identified for disposition  communities undergone significant casualty loss.
 included in non-same store communities are non-multifamily activities.
 on first day of each calendar year  we determine composition of same store operating segments for year adjust previous year to evaluate full period-over-period operating comparisons.
 apartment community in development or lease-up is added to same store portfolio on first day of calendar year after owned and stabilized for at least full 12 months.
 communities considered stabilized after achieving 90% ( 90 % ) occupancy for 90 days.
 communities identified for disposition are excluded from same store portfolio.
 all properties acquired from post properties in merger remained in non-same store other operating segment during 2017 as properties were recent acquisitions not owned and stabilized for at least 12 months as of january 1 , 2017.
 for additional information regarding operating segments see note 14 to consolidated financial statements in annual report on form 10-k.
 acquisitions growth strategies is to acquire apartment communities in various large or secondary markets primarily throughout southeast and southwest regions of united states.
 acquisitions  with dispositions help achieve maintain desired product mix , geographic diversification and asset allocation.
 portfolio growth allows for maximizing efficiency of existing management and overhead structure.
 extensive experience in acquisition of multifamily communities.
 will continue to evaluate opportunities utilize this strategy to increase number of apartment communities in strong and growing markets.
acquired apartment communities during year ended december 31 , 2017:.
 dispositions we sell apartment communities and other assets no longer meet long-term strategy or when market conditions favorable  redeploy proceeds from sales to acquire , develop redevelop additional apartment communities rebalance portfolio across within geographic regions.
 dispositions allow us to realize portion of value created through investments provide additional liquidity.
 able to redeploy net proceeds from dispositions in lieu of raising additional capital.
 in deciding to sell apartment community consider current market conditions solicit competing bids from unrelated parties for individual assets considering sales price other key terms of each proposal.
 consider portfolio dispositions when structure useful to maximize proceeds efficiency of execution.
 during year ended december 31 , 2017  disposed of five multifamily properties totaling 1760 units four land parcels totaling approximately 23 acres.
 development part of growth strategy invest in limited number of development projects.
 development activities may be conducted through wholly-owned affiliated companies or joint ventures with unaffiliated parties.
 fixed price construction contracts signed with unrelated parties to minimize construction risk.
 typically manage leasing portion of project as units become available for lease.
 may engage in limited expansion development opportunities on existing communities in we typically serve as developer.
 seek opportunistic new development investments offering attractive long-term investment returns intend to maintain total development commitment modest in relation to total balance sheet and investment portfolio.
 during year ended december 31 , 2017  incurred $ 170. 1 million in development costs completed 7 development projects.

community            | market       | units | closing date
-------------------- | ------------ | ----- | ----------------
charlotte at midtown | nashville tn | 279   | march 16 2017
acklen west end      | nashville tn | 320   | december 28 2017


breakdown of aes 2019s gross margin for years ended december 31 , 2000 and 1999 based on geographic region earned set below.
 includes venezuela and colombia.
 selling  general and administrative expenses increased $ 11 million  or 15% ( 15 % )  to $ 82 million in 2000 from $ 71 million in 1999.
 general administrative expenses percentage of revenues remained constant at 1% ( 1 % ) in 2000 and 1999.
 increase due to increase in business development activities.
 interest expense net expense increased $ 506 million or 80% ( 80 % ), to $ 1. 1 billion in 2000 from $ 632 million in 1999.
 interest expense percentage of revenues remained constant at 15% ( 15 % ) in 2000 and 1999.
 interest expense increased due to interest new businesses including drax  tiete  cilcorp edc additional corporate interest costs from senior debt and convertible securities issued past two years.
 other income net income increased $ 16 million  or 107% ( 107 % ) to $ 31 million in 2000 from $ 15 million in 1999.
 income includes foreign currency transaction gains and losses other non-operating income.
 increase in income due primarily to favorable legal judgment and sale of development projects.
 severance transaction costs during fourth quarter of 2000 company incurred approximately $ 79 million of transaction and contractual severance costs related to acquisition of ipalco.
 gain on sale of assets during 2000 ipalco sold certain assets ( 2018 2018thermal assets 2019 ) for approximately $ 162 million.
 transaction resulted in gain to company of approximately $ 31 million.
 net proceeds $ 88 million used to retire debt assignable to thermal assets.
 during 1999 company recorded $ 29 million gain ( before extraordinary loss ) from buyout of long-term power sales agreement at placerita.
company received gross proceeds $ 110 million offset by transaction related costs $ 19 million impairment loss of $ 62 million to reduce carrying value of electric generation assets to estimated fair value after termination of contract.
 estimated fair value determined by independent appraisal.
 concurrent with buyout of power sales agreement , company repaid related non-recourse debt prior to scheduled maturity recorded extraordinary loss of $ 11 million , net of income taxes.

north america | 2000 $ 844 million | % (  % ) of revenue 25% ( 25 % ) | 1999 $ 649 million | % (  % ) of revenue 32% ( 32 % ) | % (  % ) change 30% ( 30 % )
------------- | ------------------ | -------------------------------- | ------------------ | -------------------------------- | ----------------------------
south america | $ 416 million      | 36% ( 36 % )                     | $ 232 million      | 28% ( 28 % )                     | 79% ( 79 % )
caribbean*    | $ 226 million      | 21% ( 21 % )                     | $ 75 million       | 24% ( 24 % )                     | 201% ( 201 % )
europe/africa | $ 371 million      | 29% ( 29 % )                     | $ 124 million      | 29% ( 29 % )                     | 199% ( 199 % )
asia          | $ 138 million      | 22% ( 22 % )                     | $ 183 million      | 37% ( 37 % )                     | ( 26% ( 26 % ) )


e s 2 0 0 0 f i n a n c i a l r e v i e w in may 2000 subsidiary company acquired additional 5% ( 5 % ) of preferred non-voting shares of eletropaulo for approximately $ 90 million.
 in january 2000 , 59% ( 59 % ) of preferred non-voting shares acquired for approximately $ 1 billion at auction from bndes , national development bank of brazil.
 price at auction was approximately $ 72. 18 per 1000 shares paid in four annual installments with payment of 18. 5% ( 18. 5 % ) of total price upon closing transaction and installments of 25. 9% ( 25. 9 % ), 27. 1% ( 27. 1 % ) and 28. 5% ( 28. 5 % ) of total price to paid annually.
 at december 31 , 2000  company had total economic interest of 49. 6% ( 49. 6 % ) in eletropaulo.
 company accounts for investment using equity method based on related consortium agreement allows exercise significant influence.
 august 2000  subsidiary company acquired 49% ( 49 % ) interest in songas limited for $ 40 million.
 songas limited owns songo songo gas-to-electricity project in tanzania.
 project management agreement company assumed overall project management responsibility.
 project consists of refurbishment operation of five natural gas wells in coastal tanzania  construction operation of 65 mmscf/day gas processing plant related facilities construction of 230 km marine and land pipeline from gas plant to dar es salaam conversion and upgrading of existing 112 mw power station in dar es salaam to burn natural gas optional additional unit to be constructed at plant.
 project currently under construction  no rev- enues or expenses incurred no results shown in following table.
 in december 2000  subsidiary of company with edf international s.a.
 ( 201cedf 201d ) completed acquisition of additional 3. 5% ( 3. 5 % ) interest in light from two sub- sidiaries of reliant energy for approximately $ 136 mil- lion.
 acquisition  company acquired 30% ( 30 % ) of shares edf acquired remainder.
 with completion transaction company owns approximately 21. 14% ( 21. 14 % ) of light.
 in december 2000 , subsidiary of company entered agreement with edf to jointly acquire additional 9. 2% ( 9. 2 % ) interest in light  held by sub- sidiary of companhia siderurgica nacional ( 201ccsn 201d ).
 transaction company acquired additional 2. 75% ( 2. 75 % ) interest in light for $ 114. 6 million.
 transaction closed in january 2001.
 following purchase of light shares previously owned by csn , aes and edf will be con- trolling shareholders of light and eletropaulo.
 aes and edf agreed that aes will take operational control of eletropaulo and telecom businesses of light and eletropaulo , edf will take opera- tional control of light and eletropaulo 2019s electric workshop business.
 aes and edf intend to continue pursue fur- ther rationalization of ownership stakes in light and eletropaulo, result aes would become sole controlling shareholder of eletropaulo and edf would become sole controlling shareholder of light.
 upon consummation of transaction  aes will begin consolidating eletropaulo 2019s operating results.
 struc- ture and process rationalization and resulting timing  to deter mined likely subject to approval by brazilian regulatory authorities and third parties.
 no assurance that rationalization will take place.
may 1999  subsidiary company acquired subscription rights from brazilian state eletrobras allowed purchase preferred non- voting shares in eletropaulo and common shares in light.
 aggregate purchase price of subscription rights underlying shares in light eletropaulo was approximately $ 53 million and $ 77 million  represented 3. 7% (. 7 % ) and 4. 4% (. % ) economic ownership interest in capital stock.
 following table presents summarized financial information ( in millions ) for company 2019s investments in 50% ( 50 % ) or less owned investments accounted for using equity method:.

as of and for the years ended december 31, | 2000   | 1999   | 1998
------------------------------------------ | ------ | ------ | ------
revenues                                   | $ 6241 | $ 5960 | $ 8091
operating income                           | 1989   | 1839   | 2079
net income                                 | 859    | 62     | 1146
current assets                             | 2423   | 2259   | 2712
noncurrent assets                          | 13080  | 15359  | 19025
current liabilities                        | 3370   | 3637   | 4809
noncurrent liabilities                     | 5927   | 7536   | 7356
stockholder's equity                       | 6206   | 6445   | 9572


492010 annual report consolidation 2013 effective february 28 , 2010  company adopted fasb amended guidance for con- solidation.
 guidance clarifies scope of decrease in ownership provisions applies to : i ) subsidiary or group of assets business or nonprofit activity ; ( ii ) subsidiary business or nonprofit activity transferred to equity method investee or joint venture ; and ( iii ) exchange of group of assets business or nonprofit activ- ity for noncontrolling interest in entity ( including equity method investee or joint venture ).
 guidance expands disclosures about deconsolidation of subsidiary or derecognition of group of assets within scope of guidance.
 adoption of guidance not material impact on company 2019s consolidated financial statements.
 3. acquisitions : acquisition of bwe 2013 on december 17, 2007  company acquired all issued and outstanding capital stock of beam wine estates , inc.
 ( 201cbwe 201d ) indirect wholly-owned subsidiary of fortune brands , inc. together with bwe 2019s subsidiaries : atlas peak vineyards  inc. buena vista winery , inc. clos du bois , inc. gary farrell wines , inc.
 and peak wines international , inc.
 201cbwe acquisition 201d ).
 result of bwe acquisition  company acquired.
 wine portfolio of fortune brands , inc. including certain wineries , vineyards or inter- ests in state of california  various super-premium and fine california wine brands including clos du bois and wild horse.
 bwe acquisition sup- ports company 2019s strategy of strengthening portfolio with fast-growing super-premium and above wines.
bwe acquisition strengthens company 2019s position as leading wine company in world leading premium wine company in u.
 total consideration paid in cash was $ 877. 3 million.
 company incurred direct acquisition costs of $ 1. 4 million.
 purchase price financed with net proceeds from company 2019s december 2007 senior notes note 11 ) and revolver borrowings under company 2019s june 2006 credit agreement  amended in february 2007 and november 2007 note 11 ).
 with purchase method of accounting acquired net assets recorded at fair value at date of acquisition.
 purchase price based on estimated future operating results of bwe business including factors described above.
 in june 2008  company sold certain businesses several california wineries and wine brands acquired in bwe acquisition  certain wineries and wine brands from states of washington and idaho ( collectively 201cpacific northwest business 201d ) see note 7 ).
 results of operations of bwe business reported in constellation wines segment included in consolidated results of operations company from date of acquisition.
 table summarizes fair values of assets acquired and liabilities assumed in bwe acquisition at date of acquisition.
 ( in millions ) current assets $ 288. 4 property , plant and equipment 232. 8.
 other assets 30. 2 total assets acquired 983. 9 current liabilities 103. 9 long-term liabilities 1. 3 total liabilities assumed 105. 2 net assets acquired $ 878. 7 trademarks not subject to amortization.
 all goodwill expected to be deductible for tax purposes.
 acquisition of svedka 2013 on march 19 , 2007  company acquired svedka vodka brand ( 201csvedka 201d ) in connection with acquisition of spirits marque one llc and related business ( 201csvedka acquisition 201d ).
svedka is a premium swedish vodka.
 at time of acquisition  svedka acquisition supported company 2019s strategy of expanding company 2019s premium spirits business provided foundation company to leverage existing and future premium spirits portfolio for growth.
 svedka complemented company 2019s existing portfolio of super-premium and value vodka brands by adding a premium vodka brand.
 total consideration paid in cash for svedka acquisition was $ 385. 8 million.
 company incurred direct acquisition costs of $ 1. 3 million.
 pur- chase price financed with revolver borrowings under company 2019s june 2006 credit agreement, as amended in february 2007.
 in accordance with purchase method of accounting acquired net assets are recorded at fair value at date of acquisition.
 purchase price based primarily on estimated future operating results of svedka business  including factors described.
 results of operations of svedka business reported in constellation wines segment and included in consolidated results of operations company from date of acquisition.

current assets               | $ 288.4
---------------------------- | -------
property plant and equipment | 232.8
goodwill                     | 334.6
trademarks                   | 97.9
other assets                 | 30.2
total assets acquired        | 983.9
current liabilities          | 103.9
long-term liabilities        | 1.3
total liabilities assumed    | 105.2
net assets acquired          | $ 878.7


evaluation of accounts receivable aging  specifi c expo- sures historical trends.
 inventory we state our inventory at lower of cost or fair market value  cost determined on fi rst-in , fi rst-out ( fifo ) method.
 believe fifo matches fl ow of our products from manufacture through sale.
 reported net value of inventory includes saleable products , promotional products raw materials com- ponentry and work in process sold or used in future periods.
 inventory cost includes raw materials  direct labor overhead.
 we record inventory obsolescence reserve  represents difference between cost of inventory and estimated realizable value based on product sales projections.
 reserve is calcu- lated using estimated obsolescence percentage applied to inventory based on age  historical trends requirements to support forecasted sales.
 in necessary may establish specifi c reserves for future known or anticipated events.
 pension other post-retirement benefit costs offer following benefi ts to some or all employees : domestic trust-based noncontributory qual- ifi ed defi ned benefi t pension plan ( 201cu.
 qualifi ed plan 201d ) unfunded , non-qualifi ed domestic noncontributory pension plan to provide benefi ts in excess of statutory limitations.
 plan 201cdomestic plans 201d ) ; domestic contributory defi ned con- tribution plan ; international pension plans  vary by country defi ned benefi t and defi contribution pension plans ; deferred compensation arrange- ments ; certain other post-retirement benefi t plans.
 amounts needed to fund future payouts under these plans subject to numerous assumptions and variables.
 certain variables require us to make assumptions within our control antici- pated discount rate  expected rate of return on plan assets future compensation levels.
evaluate assumptions with actuarial advisors believe within accepted industry ranges increase or decrease in assumptions or economic events outside control could impact on reported net earnings.
 pre-retirement discount rate for each plan for determining future net periodic benefi t cost based on review of highly rated long-term bonds.
 for scal 2008 used pre-retirement discount rate for domestic plans of 6. 25% ( 6. 25 % ) varying rates on international plans of between 2. 25% ( 2. 25 % ) and 8. 25% ( 8. 25 % ).
 pre-retirement rate for domestic plans based on bond portfolio includes long-term bonds with aa rating or equivalent from major rating agency.
 believe timing and amount of cash fl ows related to bonds portfolio expected to match esti mated defi benefi t payment streams of domestic plans.
 for scal 2008 used expected return on plan assets of 7. 75% ( 7. 75 % ) for.
 qualifi ed plan varying rates of between 3. 00% ( 3. 00 % ) and 8. 25% ( 8. 25 % ) for international plans.
 determining long-term rate of return for plan consider historical rates of return nature of plan 2019s investments expectation for plan 2019s investment strategies.
.
 plan asset alloca- tion as of june 30 , 2008 was approximately 40% ( 40 % ) equity investments 42% ( 42 % ) debt securities 18% ( 18 % ) other invest- ments.
 asset allocation of combined international plans as of june 30 , 2008 was approximately 45% ( 45 % ) equity investments  38% ( 38 % ) debt securities 17% ( 17 % ) other invest- ments.
 difference between actual and expected return on plan assets reported as component of accumulated other comprehensive income.
gains/losses subject to amortization over future periods recog- nized as component of net periodic benefi t cost in future periods.
 for fi scal 2008  pension plans had negative return on assets of $ 19. 3 million compared with expected return on assets of $ 47. 0 million  resulted in net deferred loss of $ 66. 3 million  approximately $ 34 million subject to amortiza- tion over approximately 8 to 16 years.
 actual negative return on assets related to performance of equity markets during past fi scal year.
 25 basis-point change in discount rate or expected rate of return on plan assets would effect on fi scal 2008 pension expense : 25 basis-point 25 basis-point increase decrease ( in millions ).
 post-retirement plans comprised of health care plans could be impacted by health care cost trend rates may signifi cant effect on amounts reported.
 one-percentage-point change in assumed health care cost trend rates for fi scal 2008 would following effects : est{e lauder companies inc.
 57 66732es_fin 5766732es_fin 57 9/19/08 9:21:34 pm9/19/08

( in millions )           | 25 basis-point increase | 25 basis-point decrease
------------------------- | ----------------------- | -----------------------
discount rate             | $ -2.0 ( 2.0 )          | $ 2.5
expected return on assets | $ -1.7 ( 1.7 )          | $ 1.7


performance graph shows five-year cumulative total stockholder return on applied common stock period from october 31 , 2010 through october 25 , 2015.
 compared with cumulative total return of standard & poor 2019s 500 stock index and rdg semiconductor composite index over same period.
 comparison assumes $ 100 invested on october 31 , 2010 in applied common stock and each foregoing indices assumes reinvestment of dividends if.
 dollar amounts in graph rounded to nearest whole dollar.
 performance represents past performance not indication of future performance.
 comparison of 5 year cumulative total return* among applied materials , inc. s&p 500 index rdg semiconductor composite index *assumes $ 100 invested on 10/31/10 in stock or index including reinvestment of dividends.
 indexes calculated on month-end basis.
 201cs&p 201d is registered trademark of standard & poor 2019s financial services llc  subsidiary of mcgraw-hill companies , inc.
 dividends during fiscal 2015 and 2014  applied's board of directors declared four quarterly cash dividends of $ 0. 10 per share.
 during fiscal 2013  board of directors declared three quarterly cash dividends of $ 0. 10 per share one quarterly cash dividend of $ 0. 09 per share.
 dividends paid during fiscal 2015 , 2014 and 2013 amounted to $ 487 million , $ 485 million and $ 456 million.
 applied anticipates cash dividends will continue to be paid quarterly basis declaration of future cash dividend at discretion of board of directors on applied 2019s financial condition  results of operations  capital requirements  business conditions other factors determination by board directors cash dividends in best interests of applied 2019s stockholders.
136 10/31/10 10/30/11/28/12/27/13/26/14 10/25/15 applied materials.
 s&p 500 rdg semiconductor composite

| 10/31/2010 | 10/30/2011 | 10/28/2012 | 10/27/2013 | 10/26/2014 | 10/25/2015
--------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
applied materials                 | 100.00     | 104.54     | 90.88      | 155.43     | 188.13     | 150.26
s&p 500 index                     | 100.00     | 108.09     | 124.52     | 158.36     | 185.71     | 195.37
rdg semiconductor composite index | 100.00     | 110.04     | 104.07     | 136.15     | 172.41     | 170.40


accounting pronouncements see note 1 accounting policies in notes to consolidated financial statements item 8 for additional information on recent accounting pronouncements relevant to our business description of new pronouncement required date adoption planned date adoption expected impact on consolidated financial statements.
 pronouncements issued by fasb unless noted.
 issued in 2007 : 2022 sfas 141 ( r )  201cbusiness combinations 201d 2022 sfas 160 , 201caccounting reporting of noncontrolling interests in consolidated financial statements amendment of arb no.
 51 2022 november 2007  sec issued staff accounting bulletin no.
 109 , 2022 june 2007  aicpa issued statement of position 07-1  201cclarification of scope of audit and accounting guide 201cinvestment companies accounting by parent companies equity method investors for investments investment companies. fasb issued final fsp in february 2008 delays effective date of aicpa sop 07-1.
 2022 fasb staff position no.
 ( 201cfsp 201d ) fin 46 ( r ) 7  201capplication of fasb interpretation no.
 46 ( r ) to investment companies 2022 fsp fin 48-1  201cdefinition of settlement in fasb interpretation ( 201cfin 201d ) no.
 48 201d 2022 sfas 159 , fair value option for financial assets financial liabilities 2013 amendment of fasb statement no.
 115 issued during 2006 : 2022 sfas 158 , 201cemployers 2019 accounting for defined benefit pension postretirement benefit plans 2013 amendment of fasb statements no.
 87 , 88 , 106 132 ( r ) 201csfas 158 2022 sfas 157  201cfair value measurements 201d 2022 fin 48  201caccounting for uncertainty in income taxes 2013 interpretation of fasb statement no.
109 201d 2022 fsp fas 13-2 , 201caccounting for change projected change in timing cash flows income taxes leveraged lease transaction 201d 2022 sfas 156 , 201caccounting for servicing financial assets 2013 amendment of fasb statement no.
 140 201d 2022 sfas 155 , 201caccounting for hybrid financial instruments 2013 amendment of fasb statements no.
 133 140 201d 2022 emerging issues task force ( 201ceitf 201d ) fasb issued eitf issue 06-4, 201caccounting for deferred compensation postretirement benefit aspects endorsement split-dollar life insurance arrangements 201d status defined benefit pension plan noncontributory  qualified defined benefit pension plan ( 201cplan 201d or 201cpension plan 201d ) covering eligible employees.
 benefits derived from cash balance formula based on compensation levels age length of service.
 pension contributions based on actuarially determined amount necessary to fund total benefits payable to plan participants.
 consistent investment strategy plan assets approximately 60% ( 60 % ) invested in equity investments remainder invested in fixed income instruments.
 plan fiduciaries determine review plan 2019s investment policy.
 calculate expense pension plan accordance with sfas 87 , 201cemployers 2019 accounting for pensions , 201d use assumptions methods compatible with requirements sfas 87 policy of reflecting trust assets at fair market value.
 annual basis review actuarial assumptions related pension plan including discount rate  rate of compensation increase expected return on plan assets.
 neither discount rate nor compensation increase assumptions affects pension expense.
 expected long-term return on assets assumption affect pension expense.
 expected long-term return on plan assets for determining net periodic pension cost for 2007 was 8. 25% ( 8. 25 % ) unchanged from 2006.
current accounting rules difference between expected long-term returns and actual returns accumulated amortized to pension expense over future periods.
 each one percentage point difference in actual return expected return causes expense subsequent years change by up to $ 4 million impact amortized into results operations.
 table below reflects estimated effects on pension expense of changes in assumptions using 2008 estimated expense as baseline.
 change in assumption estimated increase to 2008 pension expense in millions ).
 currently estimate pretax pension benefit of $ 26 million in 2008 compared with benefit $ 30 million in

change in assumption                                         | estimatedincrease to 2008pensionexpense ( in millions )
------------------------------------------------------------ | -------------------------------------------------------
.5% ( .5 % ) decrease in discount rate                       | $ 1
.5% ( .5 % ) decrease in expected long-term return on assets | $ 10
.5% ( .5 % ) increase in compensation rate                   | $ 2


notes to consolidated financial statements ( continued ) note 4 2014acquisitions continued ) acquisition of emagic gmbh during fourth quarter of 2002  company acquired emagic gmbh ( emagic ), provider of professional software solutions for computer based music production  for approximately $ 30 million in cash ; $ 26 million paid immediately upon closing deal $ 4 million held-back for future payment contingent on continued employment by certain employees allocated to future compensation expense in appropriate periods over following 3 years.
 during fiscal 2003  contingent consideration totaling $ 1. 3 million paid.
 acquisition accounted for as purchase.
 portion of purchase price allocated to purchased in-process research and development ( ipr&d ) expensed immediately portion of purchase price allocated to acquired technology and tradename amortized over estimated useful lives of 3 years.
 goodwill associated with acquisition of emagic not subject to amortization provisions of sfas no.
 142.
 total consideration allocated as follows ( in millions ) :.
 amount of purchase price allocated to ipr&d expensed upon acquisition  because technological feasibility of products under development not established no alternative future uses existed.
 ipr&d relates primarily to emagic 2019s logic series technology and extensions.
 at date of acquisition products under development between 43%-83% ( 43%-83 % ) complete expected remaining work completed during company 2019s fiscal 2003 at cost of approximately $ 415000.
 remaining efforts  completed in 2003  included finalizing user interface design and development , and testing.
fair value of ipr&d determined using income approach  reflects projected free cash flows generated by ipr&d projects attributable to acquired technology , discounting projected net cash flows back to present value using discount rate of 25% ( 25 % ).
 acquisition of certain assets of zayante , inc. , prismo graphics , and silicon grail during fiscal 2002 company acquired certain technology and patent rights of zayante  inc. prismo graphics  silicon grail corporation for total of $ 20 million in cash.
 these transactions accounted for as asset acquisitions.
 purchase price for asset acquisitions , except for $ 1 million identified as contingent consideration allocated to compensation expense over following 3 years , allocated to acquired technology amortized straight-line basis over 3 years , except for certain assets acquired from zayante associated with patent royalty streams amortized over 10 years.
 acquisition of nothing real , llc during second quarter of 2002  company acquired certain assets of nothing real , llc ( nothing real ) , privately-held company develops and markets high performance tools for digital image creation market.
 of $ 15 million purchase price  company allocated $ 7 million to acquired technology  amortized over estimated life of 5 years.
 remaining $ 8 million  identified as contingent consideration , rather than recorded as additional component

net tangible assets acquired        | $ 2.3
----------------------------------- | ------
acquired technology                 | 3.8
tradename                           | 0.8
in-process research and development | 0.5
goodwill                            | 18.6
total consideration                 | $ 26.0


note 10.
 commitments contingencies off-balance sheet commitments contingencies : credit-related financial instruments include indemnified securities financing unfunded commitments to extend credit or purchase assets standby letters of credit.
 total potential loss on unfunded commitments  standby letters of credit securities finance indemnifications equal to total contractual amount not consider value of collateral.
 summary of contractual amount of credit-related off-balance sheet financial instruments at december 31.
 amounts reported do not reflect participations to independent third parties.
 2007 2006 ( in millions ).
 on behalf of customers we lend securities to creditworthy brokers other institutions.
 in certain circumstances may indemnify customers for fair market value of securities against failure of borrower to return securities.
 collateral funds received in with securities finance services held by us as agent not recorded in consolidated statement of condition.
 require borrowers to provide collateral in amount equal to or excess of 100% ( ) of fair market value of securities borrowed.
 borrowed securities revalued daily to determine if additional collateral necessary.
 held agent cash.
 government securities totaling $ 572. 93 billion and $ 527. 37 billion as collateral for indemnified securities on loan at december 31 , 2007 and 2006 .
 approximately 82% ( 82 % ) of unfunded commitments to extend credit and liquidity asset purchase agreements expire within one year from date of issue.
 many commitments expected to expire or renew without drawn upon total commitment amounts do not necessarily represent future cash requirements.
 normal business provide liquidity and credit enhancements to asset-backed commercial paper programs referred to as 2018 2018conduits. 2019 2019 these conduits described in note 11.
commercial paper issuances commitments of conduits to provide funding supported by liquidity asset purchase agreements backup liquidity lines of credit  majority provided by us.
 we provide direct credit support to conduits in form of standby letters of credit.
 our commitments under liquidity asset purchase agreements back-up lines of credit totaled $ 28. 37 billion at december 31 , 2007  included in preceding table.
 commitments under standby letters of credit totaled $ 1. 04 billion at december 31 , 2007  also included in preceding table.
 deterioration in asset performance or other factors affecting liquidity of commercial paper may shift asset risk from commercial paper investors to us as liquidity or credit enhancement provider.
 conduits may need to draw upon back-up facilities to repay maturing commercial paper.
 in we acquire assets of conduits or make loans to conduits secured by conduits 2019 assets.
 in normal business we offer products provide book value protection to plan participants in stable value funds of postretirement defined contribution benefit plans  particularly 401 ( k ) plans.
 book value protection provided on portfolios of intermediate , investment grade fixed-income securities  intended to provide safety stable growth of principal invested.
 protection intended to cover any shortfall in event significant number of plan participants

( in millions )                       | 2007     | 2006
------------------------------------- | -------- | --------
indemnified securities financing      | $ 558368 | $ 506032
liquidity asset purchase agreements   | 35339    | 30251
unfunded commitments to extend credit | 17533    | 16354
standby letters of credit             | 4711     | 4926


item 12 2014security ownership of certain beneficial owners management related stockholder matters incorporate reference item 12 information relating to ownership common stock by certain persons under headings 201ccommon stock ownership management 201d 201ccommon stock ownership by certain other persons 201d proxy statement delivered connection 2009 annual meeting shareholders held september 30 , 2009.
 four compensation plans under equity securities authorized for issuance.
 global payments inc.
 amended restated 2000 long-term incentive plan  global payments inc.
 amended restated 2005 incentive plan non-employee director stock option plan employee stock purchase plan approved by security holders.
 information table below as of may 31 , 2009.
 for more information plans see note 11 to notes consolidated financial statements.
 plan category number of securities issued exercise outstanding options, warrants rights weighted- average exercise price of outstanding options warrants rights number securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders:.
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 4292668 $ 28 6570132 ( 1 ) equity compensation plans not approved by security holders.
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 2014 2014 2014.
 includes shares of common stock available for issuance exercise of option , warrant right under global payments inc.
 2000 long-term incentive plan  amended restated  global payments inc.
amended restated 2005 incentive plan amended restated 2000 non-employee director stock option plan.
 item 13 2014certain relationships related transactions , director independence incorporate by reference in item 13 information regarding certain relationships related transactions between us and affiliates independence of board of directors contained under headings 201ccertain relationships related transactions 201d and 201cother information about board and its committees 2014director independence 201d from proxy statement delivered in connection with 2009 annual meeting of shareholders held september 30 , 2009.
 item 14 2014principal accounting fees and services incorporate by reference in item 14 information regarding principal accounting fees and services contained under heading 201cauditor information 201d from proxy statement delivered in connection with 2009 annual meeting of shareholders held on september 30 , 2009.

plan category                                               | number of securities to be issued upon exercise of outstanding options warrants and rights ( a ) | weighted- average exercise price of outstanding options warrants andrights ( b ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c ) |
----------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------- | --------
equity compensation plans approved by security holders:     | 4292668                                                                                | $ 28                                                                             | 6570132                                                                                | -1 ( 1 )
equity compensation plans not approved by security holders: | 2014                                                                                | 2014                                                                             | 2014                                                                                |
total                                                       | 4292668                                                                                | $ 28                                                                             | 6570132                                                                                | -1 ( 1 )


benefits increase to earnings of $ 152 million ( $ 0. 50 per share ) during year ended december 31 , 2016.
 recognized additional income tax benefits increase to operating cash flows of $ 152 million during year ended december 31 , 2016.
 new accounting standard not impact periods prior to january 1 , 2016 applied changes in asu prospective basis.
 in september 2015  fasb issued asu no.
 2015-16 , business combinations ( topic 805 )  simplifies accounting for adjustments to preliminary amounts recognized in business combination by eliminating requirement to retrospectively account for adjustments.
 instead adjustments recognized in period adjustments determined including effect on earnings of amounts recorded in previous periods if accounting completed at acquisition date.
 adopted asu on january 1 , 2016 prospectively applying asu to business combination adjustments identified after date of adoption.
 november 2015  fasb issued asu no.
 2015-17 , income taxes ( topic 740 ) simplifies presentation of deferred income taxes requires deferred tax assets and liabilities related valuation allowance classified as noncurrent in consolidated balance sheets.
 applied provisions of asu retrospectively reclassified approximately $ 1. 6 billion from current to noncurrent assets and approximately $ 140 million from current to noncurrent liabilities in consolidated balance sheet as of december 31 , 2015.
 note 2 2013 earnings per share weighted average number of shares outstanding used to compute earnings per common share were as follows ( in millions ) :.
 compute basic and diluted earnings per common share by dividing net earnings by respective weighted average number of common shares outstanding for periods presented.
calculation of diluted earnings per common share includes dilutive effects for assumed vesting of outstanding restricted stock units exercise of outstanding stock options based on treasury stock method.
 no anti-dilutive equity awards for years ended december 31 , 2016 , 2015 2014.
 note 3 2013 acquisitions and divestitures acquisitions acquisition of sikorsky aircraft corporation on november 6, 2015 completed acquisition of sikorsky aircraft corporation certain affiliated companies ( collectively 201csikorsky 201d ) from united technologies corporation ( utc ) utc 2019s subsidiaries.
 purchase price acquisition was $ 9. 0 billion  net of cash acquired.
 acquisition sikorsky became a wholly- owned subsidiary of ours.
 sikorsky is global company engaged in research  design development manufacture support of military and commercial helicopters.
 sikorsky 2019s products include military helicopters black hawk  seahawk  ch-53k  h-92 commercial helicopters s-76 and s-92.
 acquisition enables to extend core business into military commercial rotary wing markets strengthen position in aerospace and defense industry.
 acquisition will expand presence in commercial and international markets.
 sikorsky aligned under our rms business segment.
 to fund $ 9. 0 billion acquisition price utilized $ 6. 0 billion of proceeds borrowed under temporary 364-day revolving credit facility ( 364-day facility ) $ 2. 0 billion of cash on hand $ 1. 0 billion from issuance of commercial paper.
 in fourth quarter of 2015 repaid all outstanding borrowings under 364-day facility with proceeds from issuance of $ 7. 0 billion of fixed interest-rate long-term notes in public offering ( november 2015 notes ).
 in fourth quarter of 2015  also repaid $ 1.billion commercial paper borrowings see 201cnote 10 2013 debt 201d.

| 2016  | 2015  | 2014
------------------------------------------------------------------ | ----- | ----- | -----
weighted average common shares outstanding for basic computations  | 299.3 | 310.3 | 316.8
weighted average dilutive effect of equity awards                  | 3.8   | 4.4   | 5.6
weighted average common shares outstanding for dilutedcomputations | 303.1 | 314.7 | 322.4


table illustrates effect 10% ( 10 % ) unfavorable or favorable movement in foreign currency exchange rates relative to.
 dollar on fair value of forward exchange contracts october 30, 2010 and october 31, 2009:.
 fair value of forward exchange contracts after 10% ( 10 % ) unfavorable movement in foreign currency exchange rates.
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 $ 22062 $ 20132 fair value of forward exchange contracts after 10% ( 10 % ) favorable movement in foreign currency exchange rates.
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 $ ( 7396 ) $ ( 6781 ) calculation assumes each exchange rate change same direction relative to u. s.
 dollar.
 direct effects of changes in exchange rates changes affect volume of sales or foreign currency sales price as competitors products become more or less attractive.
 analysis effects of changes in foreign currency exchange rates factor in potential change in sales levels or local currency selling prices.

| october 30 2010  | october 31 2009
----------------------------------------------------------------------------------------------------------------------------- | ---------------- | ----------------
fair value of forward exchange contracts asset                                                                                | $ 7256           | $ 8367
fair value of forward exchange contracts after a 10% ( 10 % ) unfavorable movement in foreign currency exchange rates asset   | $ 22062          | $ 20132
fair value of forward exchange contracts after a 10% ( 10 % ) favorable movement in foreign currency exchange rates liability | $ -7396 ( 7396 ) | $ -6781 ( 6781 )


synopsys , inc.
 notes to consolidated financial statements 2014continued acquisition of magma design automation , inc.
 ( magma ) on february 22 , 2012 company acquired all outstanding shares of magma , a chip design software provider at per-share price of $ 7. 35.
 company assumed unvested restricted stock units ( rsus ) and stock options  called 201cequity awards. aggregate purchase price was approximately $ 550. 2 million.
 acquisition enables company to meet needs of leading-edge semiconductor designers for sophisticated design tools.
 as of october 31, 2012  total purchase consideration preliminary purchase price allocation were follows:.
 goodwill of $ 316. 3 million  not deductible for tax purposes resulted from company 2019s expectation of sales growth cost synergies from integration of magma 2019s technology and operations technology.
 identifiable intangible assets  primarily of technology  customer relationships  backlog trademarks valued using income method amortized over three to ten years.
 acquisition-related costs attributable to business combination totaling $ 33. 5 million for fiscal 2012 expensed as incurred in consolidated statements of operations primarily of employee separation costs  contract terminations  professional services  facilities closure costs.
 fair value of equity awards assumed.
 company assumed unvested restricted stock units ( rsus ) and stock options with fair value of $ 22. 2 million.
 black-scholes option-pricing model used to determine fair value of stock options fair value of rsus based on market price on grant date of instruments.
 black-scholes option-pricing model incorporates subjective assumptions including expected volatility  expected term risk-free interest rates.
expected volatility estimated by combination of implied and historical stock price volatility of options.
 of total fair value of equity awards assumed , $ 6. 8 million allocated to purchase consideration $ 15. 4 million allocated to future services expensed over remaining service periods on straight-line basis.
 supplemental pro forma information ( unaudited ).
 financial information in table below summarizes combined results of operations of company and magma , pro forma basis  as though companies combined as of beginning of fiscal 2011.

| ( in thousands )
----------------------------------------------------------------------- | ----------------
cash paid                                                               | $ 543437
fair value of assumed equity awards allocated to purchase consideration | 6797
total purchase consideration                                            | $ 550234
goodwill                                                                | 316263
identifiable intangibles assets acquired                                | 184300
cash and other assets acquired                                          | 116265
debt and liabilities assumed                                            | -66594 ( 66594 )
total purchase allocation                                               | $ 550234


2022 base rate increases at entergy texas beginning may 2011 result of settlement of december 2009 rate case effective july 2012 result puct 2019s order december 2011 rate case.
 see note 2 to financial statements for discussion rate cases.
 increases partially offset by formula rate plan decreases at entergy new orleans effective october 2011 and entergy gulf states louisiana effective september 2012.
 see note 2 financial statements for discussion formula rate plan decreases.
 grand gulf recovery variance due to increased recovery of higher costs from grand gulf uprate.
 net wholesale revenue variance due to decreased sales volume to municipal co-op customers lower prices.
 purchased power capacity variance due to price increases for ongoing purchased power capacity additional capacity purchases.
 volume/weather variance due to decreased electricity usage effect of milder weather on residential and commercial sales.
 hurricane isaac  hit utility 2019s service area august 2012 contributed to decrease in electricity usage.
 billed electricity usage decreased total of 1684 gwh  or 2% ( 2 % ) across all customer classes.
 louisiana act 55 financing savings obligation variance results from regulatory charge recorded in 2012 entergy gulf states louisiana and entergy louisiana agreed to share savings from irs settlement related to uncertain tax position regarding hurricane katrina and hurricane rita louisiana act 55 financing with customers.
 see note 3 to financial statements for additional discussion of tax settlement.
 entergy wholesale commodities analysis of change in net revenue comparing 2012 to 2011.
 amount ( in millions ).
shown in table above net revenue for entergy wholesale commodities decreased by $ 191 million  or 9% ( 9 % ) , in 2012 compared to 2011 primarily due to lower pricing in contracts to sell power lower volume in nuclear fleet from more unplanned refueling outage days in 2012 compared 2011 partially offset by resupply options for in purchase power agreements entergy may elect to supply power from another source when plant not running.
 amounts related to exercise resupply options included in gwh billed in table below.
 partially offsetting lower net revenue from nuclear fleet was higher net revenue from rhode island state energy center , acquired in december 2011.
 entergy corporation subsidiaries management's financial discussion analysis

| amount ( in millions )
------------------------------ | ----------------------
2011 net revenue               | $ 2045
nuclear realized price changes | -194 ( 194 )
nuclear volume                 | -33 ( 33 )
other                          | 36
2012 net revenue               | $ 1854


information related to company's share options is ( in millions ) :.
 unamortized deferred compensation expense , includes both options and rsus , amounted to $ 378 million as of december 31 , 2015  remaining weighted-average amortization period of approximately 2. 1 years.
 employee share purchase plan united states company has employee purchase plan provides for purchase of maximum of 7. 5 million shares of company's ordinary shares by eligible.
 employees.
 company ordinary shares purchased at 6-month intervals at 85% ( 85 % ) of lower of fair market value of ordinary shares on first or last day of each 6-month period.
 in 2015 , 2014  2013 , 411636 shares , 439000 shares and 556000 shares were issued to employees under plan.
 compensation expense recognized was $ 9 million in 2015 , $ 7 million in 2014  $ 6 million in 2013.
 company also has employee share purchase plan for eligible.
 employees provides for purchase of shares after 3-year period similar to.
 plan.
 three-year periods began in 2015 , 2014 , 2013  allowing for purchase of maximum of 100000 , 300000 , and 350000 shares , respectively.
 in 2015 , 2014  2013 , 2779 shares , 642 shares  and 172110 shares  were issued under plan.
 compensation expense of $ 2 million recognized in 2015 and 2014  compared to $ 1 million compensation expense in 2013.
.
 company is exposed to market risks including changes in foreign currency exchange rates and interest rates.
 to manage risk exposures company enters into derivative instruments that reduce these risks offsetting exposures.
 company does not enter into derivative transactions for trading or speculative purposes.
foreign exchange risk management company exposed to foreign exchange risk when earns revenues pays expenses enters into monetary intercompany transfers denominated in currency differs from functional currency or other transactions denominated in currency other than functional currency.
 company uses foreign exchange derivatives  typically forward contracts  options cross-currency swaps  to reduce exposure to effects of currency fluctuations on cash flows.
 these exposures hedged  average for less than two years.
 derivatives accounted for as hedges  changes in fair value recorded each period in other comprehensive income ( loss ) in consolidated statements of comprehensive income.
 company also uses foreign exchange derivatives  typically forward contracts options to economically hedge currency exposure of company's global liquidity profile  including monetary assets or liabilities denominated in non-functional currency entity typically on rolling 30-day basis  may be for up to one year in future.
 these derivatives not accounted for as hedges  changes in fair value recorded each period in other income in consolidated statements of income.

| 2015  | 2014 | 2013
------------------------------------------------------- | ----- | ---- | ----
aggregate intrinsic value of stock options exercised    | $ 104 | $ 61 | $ 73
cash received from the exercise of stock options        | 40    | 38   | 61
tax benefit realized from the exercise of stock options | 36    | 16   | 15


no share repurchases in 2016.
 stock performance graph matches fidelity national information services  inc. 's cumulative 5-year total shareholder return on common stock with cumulative total returns of s&p 500 index and s&p supercap data processing & outsourced services index. graph tracks performance of $ 100 investment in common stock and each index ( with reinvestment of all dividends ) from december 31  2011 to december 31  2016.
 stock price performance not indicative of future stock price performance.
 item 6.
 selected financial ss selected financial data constitutes historical financial data fis be read in conjunction with "item 7 , management 2019s discussion and analysis of financial condition results of operations and "item 8 , financial statements and supplementary data  " included elsewhere in report.

| 12/11  | 12/12  | 12/13  | 12/14  | 12/15  | 12/16
-------------------------------------------------- | ------ | ------ | ------ | ------ | ------ | ------
fidelity national information services inc .       | 100.00 | 134.12 | 210.97 | 248.68 | 246.21 | 311.81
s&p 500                                            | 100.00 | 116.00 | 153.58 | 174.60 | 177.01 | 198.18
s&p supercap data processing & outsourced services | 100.00 | 126.06 | 194.91 | 218.05 | 247.68 | 267.14


september 2007  reached settlement with united states department of justice in ongoing investigation into financial relationships between major orthopaedic manufacturers and consulting orthopaedic surgeons.
 under terms settlement paid civil settlement amount of $ 169. 5 million recorded expense in amount.
 no tax benefit recorded related to settlement expense due to uncertainty tax treatment.
 intend to pursue resolution of uncertainty with taxing authorities but unable to ascertain outcome or timing for resolution.
 for more information regarding settlement see note 15.
 june 2006 financial accounting standards board ( fasb ) issued interpretation no.
 48 , accounting for uncertainty in income taxes 2013 interpretation of fasb statement no.
 109 , accounting for income taxes ( fin 48 ).
 fin 48 addresses determination of whether tax benefits claimed or expected to claimed on tax return should be recorded in financial statements.
 under fin 48  may recognize tax benefit from uncertain tax position only if more likely than not tax position will be sustained on examination by taxing authorities based on technical merits of position.
 tax benefits recognized in financial statements from position should be measured based on largest benefit greater than fifty percent likelihood of being realized upon ultimate settlement.
 fin 48 provides guidance on derecognition, classification, interest penalties on income taxes accounting in interim periods requires increased disclosures.
 adopted fin 48 on january 1 , 2007.
 prior to adoption fin 48 had long term tax liability for expected settlement of various federal , state and foreign income tax liabilities reflected net of corollary tax impact of expected settlements of $ 102. 1 million  separate accrued interest liability of $ 1. 7 million.
result of adoption of fin 48  required to present different components of liability on gross basis versus historical net presentation.
 adoption resulted in financial statement liability for unrecognized tax benefits decreasing by $ 6. 4 million as of january 1 , 2007.
 adoption resulted in decrease in liability reduction to retained earnings of $ 4. 8 million , reduction in goodwill of $ 61. 4 million  establishment of tax receivable of $ 58. 2 million  recorded in other current and non-current assets on consolidated balance sheet increase in interest/penalty payable of $ 7. 9 million  all as of january 1 , 2007.
 after adoption of fin 48  amount of unrecognized tax benefits is $ 95. 7 million as of january 1 , 2007 $ 28. 6 million would impact effective tax rate  if recognized.
 amount unrecognized tax benefits is $ 135. 2 million as of december 31 , 2007.
 $ 41. 0 million would impact effective tax rate if recognized.
 reconciliation of beginning and ending amounts of unrecognized tax benefits is follows ( in millions ) :.
 recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense in consolidated statements of earnings consistent with recognition of items in prior reporting periods.
 as of january 1 , 2007 recorded liability of $ 9. 6 million for accrued interest and penalties $ 7. 5 million would impact effective tax rate  if recognized.
 liability is $ 19. 6 million as of december 31 , 2007.
 $ 14. 7 million would impact effective tax rate if recognized.
expect amount tax liability for unrecognized tax benefits will change in next twelve months ; do not expect these changes significant impact on our results of operations or financial position.
 u. s.
 federal statute of limitations remains open for year 2003 and onward with years 2003 and 2004 under examination by irs.
 possible resolution with irs for years 2003 through 2004 be reached within next twelve months , but do not anticipate material impact on our financial position.
 in for 1999 tax year of centerpulse , we acquired in october 2003 , one issue remains in dispute.
 resolution of issue not impact our effective tax rate , be recorded as adjustment to goodwill.
 state income tax returns subject to examination for 3 to 5 years after filing return.
 state impact of federal changes remains subject to examination by various states for up to one year after formal notification to states.
 various state income tax returns in process of examination , administrative appeals or litigation.
 possible such matters will be resolved in next twelve months , but do not anticipate resolution of these matters result in material impact on our results of operations or financial position.
 foreign jurisdictions have statutes of limitations ranging from 3 to 5 years.
 years still open to examination by foreign tax authorities in major jurisdictions include australia ( 2003 onward ) canada ( 1999 onward )  france ( 2005 onward ) germany ( 2005 onward ) italy ( 2003 onward ) japan ( 2001 onward ) puerto rico ( 2005 onward ) singapore ( 2003 onward ) switzerland ( 2004 onward ) and united kingdom ( 2005 onward ).
 z i m m e r h o l d i n g s n c.
2 0 0 7 f o r m 1 0 - k a n n u a l t notes consolidated financial statements continued )

balance at january 1 2007                                | $ 95.7
-------------------------------------------------------- | ------------
increases related to prior periods                       | 27.4
decreases related to prior periods                       | -5.5 ( 5.5 )
increases related to current period                      | 21.9
decreases related to settlements with taxing authorities | -1.3 ( 1.3 )
decreases related to lapse of statue of limitations      | -3.0 ( 3.0 )
balance at december 31 2007                              | $ 135.2


note 9 2014 benefit plans company has defined benefit pension plans covering certain employees in united states international locations.
 postretirement healthcare life insurance benefits to qualifying domestic retirees other postretirement benefit plans in international countries not material.
 measurement date for company 2019s employee benefit plans is september 30.
 effective january 1 , 2018  legacy.
 pension plan frozen to limit participation of employees hired or re-hired by company or transfer employment to company on or after january 1  net pension cost for years ended september 30 included components:.
 net pension cost preceding table attributable to international plans $ 32 $ 34 $ 43 amounts for amortization of prior service credit and amortization of loss represent reclassifications of prior service credits net actuarial losses recognized in accumulated other comprehensive income ( loss ) in prior periods.
 settlement losses recorded in 2019 and 2018 included lump sum benefit payments associated with company 2019s.
 supplemental pension plan.
 company recognizes pension settlements when payments from supplemental plan exceed sum of service and interest cost components of net periodic pension cost associated with plan for fiscal year.
 discussed note 2 upon adopting accounting standard update on october 1, 2018  all components company 2019s net periodic pension postretirement benefit costs aside service cost recorded to other income ( expense )  net on consolidated statements of income for all periods presented.
 notes to consolidated financial statements 2014 ( becton , dickinson and company

( millions of dollars )                                                                      | pension plans 2019 | pension plans 2018 | pension plans 2017
-------------------------------------------------------------------------------------------- | ------------------ | ------------------ | ------------------
service cost                                                                                | $ 134              | $ 136              | $ 110
interest cost                                                                                | 107                | 90                 | 61
expected return on plan assets                                                               | ( 180 )            | ( 154 )            | ( 112 )
amortization of prior service credit                                                         | ( 13 )             | ( 13 )             | ( 14 )
amortization of loss                                                                         | 78                 | 78                 | 92
settlements                                                                                | 10                 | 2                  | 2014
net pension cost                                                                             | $ 135              | $ 137              | $ 138
net pension cost included in the preceding table that is attributable to international plans | $ 32               | $ 34               | $ 43


management 2019s discussion analysis of financial condition results of operations in 2008  asp was flat compared to 2007.
 comparison asp decreased 9% ( 9 % ) in 2007 decreased 11% ( 11 % ) in 2006.
 segment has large customers throughout world.
 in 2008  aggregate net sales to segment 2019s five largest customers accounted for approximately 41% ( 41 % ) of segment 2019s net sales.
 besides selling directly to carriers operators segment also sells products through third-party distributors retailers accounted for approximately 24% ( 24 % ) of segment 2019s net sales in 2008.
 u. s.
 market continued segment 2019s largest individual market  many customers  56% ( 56 % ) of segment 2019s 2008 net sales  were outside u. s.
 in 2008  largest international markets were brazil , china mexico.
 segment 2019s revenue transactions largely denominated in local currencies impacted by weakening in value of local currencies against u. s.
 dollar.
 significant international markets  particularly in latin america  impacted by this trend in late 2008.
 home and networks mobility segment networks segment designs , manufactures  sells  installs services : i ) digital video , internet protocol video broadcast network interactive set-tops , end-to-end video distribution systems  broadband access infrastructure platforms , associated data and voice customer premise equipment to cable television telecom service providers ( collectively referred to as 2018 2018home business 2019 2019 ) ii ) wireless access systems , including cellular infrastructure systems wireless broadband systems , to wireless service providers ( collectively referred to as 2018 2018network business 2019 ).
2009  segment 2019s net sales represented 36% ( 36 % ) of company 2019s consolidated net sales compared to 33% ( 33 % ) in 2008 27% ( 27 % ) in 2007.
 years ended december 31 percent change ( dollars in millions ) 2009 2008 2007 2009 20142008 2008 20142007.
 segment results 20142009 compared to 2008 2009 segment 2019s net sales were $ 8. 0 billion  decrease of 21% ( 21 % ) compared to net sales $ 10. 1 billion in 2008.
 21% ( 21 % ) decrease net sales reflects 22% ( 22 % ) decrease in net sales in networks business 21% ( 21 % ) decrease in home business.
 22% ( 22 % ) decrease sales networks business driven by lower net sales of gsm , cdma  umts iden infrastructure equipment  partially offset by higher net sales of wimax products.
 21% ( 21 % ) decrease in sales home business driven by 24% ( 24 % ) decrease in net sales of digital entertainment devices reflecting 18% ( 18 % ) decrease in shipments of digital entertainment devices due to lower shipments to large cable telecommunications operators in north america macroeconomic conditions lower asp due to unfavorable shift in product mix.
 segment shipped 14. 7 million digital entertainment devices in 2009 compared to 18. 0 million shipped in 2008.
 geographic 21% ( 21 % ) decrease in net sales driven by lower net sales in all regions.
 decrease in net sales in north america primarily due to lower net sales in home business lower net sales of cdma iden infrastructure equipment  partially offset by higher net sales of wimax products.
 decrease in net sales in emea due to lower net sales of gsm infrastructure equipment  offset by higher net sales wimax products higher net sales in home business.
decrease in net sales in asia driven by lower net sales of gsm  umts cdma infrastructure equipment partially offset by higher net sales in home business.
 decrease in net sales in latin america due to lower net sales in home business lower net sales of iden infrastructure equipment partially offset by higher net sales of wimax products.
 net sales in north america accounted for approximately 51% ( 51 % ) of segment 2019s total net sales in 2009  compared to approximately 50% ( 50 % ) segment total net sales in 2008.

( dollars in millions ) | years ended december 31 2009 | years ended december 31 2008 | years ended december 31 2007 | years ended december 31 2009 20142008 | 2008 20142007
----------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | -------------
segment net sales       | $ 7963                       | $ 10086                      | $ 10014                      | ( 21 ) % (  % )                       | 1% ( 1 % )
operating earnings      | 558                          | 918                          | 709                          | ( 39 ) % (  % )                       | 29% ( 29 % )


credit commitments and lines of credit table below summarizes citigroup 2019s credit commitments as of december 31 , 2010 and december 31 , 2009:.
 majority of unused commitments contingent upon customers maintaining specific credit standards.
 commercial commitments have floating interest rates fixed expiration dates may require payment of fees.
 such fees ( net of certain direct costs ) are deferred and  upon exercise commitment , amortized over life of loan or if exercise remote , amortized over commitment period.
 commercial and similar letters of credit commercial letter of credit is instrument citigroup substitutes its credit for customer to enable customer finance purchase of goods or incur other commitments.
 citigroup issues letter on behalf of client to supplier agrees to pay supplier upon presentation of documentary evidence supplier has performed in accordance with terms of letter of credit.
 when letter of credit drawn , customer required to reimburse citigroup.
 one- to four-family residential mortgages one- to four-family residential mortgage commitment is written confirmation from citigroup to seller of property that bank will advance specified sums enabling buyer to complete purchase.
 revolving open-end loans secured by one- to four-family residential properties loans are essentially home equity lines of credit.
 home equity line of credit is loan secured by primary residence or second home to extent of excess of fair market value over debt outstanding for first mortgage.
 commercial real estate , construction and land development commercial real estate  construction land development include unused portions of commitments to extend credit for financing commercial and multifamily residential properties land development projects.
 both secured-by-real-estate and unsecured commitments included in this line , as undistributed loan proceeds, where obligation to advance for construction progress payments.
this line includes extensions of credit once funded classified as loans on consolidated balance sheet.
 credit card lines citigroup provides credit to customers by issuing credit cards.
 credit card lines are unconditionally cancelable by issuer.
 commercial and other consumer loan commitments commercial loan commitments include overdraft and liquidity facilities commercial commitments to make or purchase loans purchase third-party receivables  provide note issuance or revolving underwriting facilities invest in form of equity.
 amounts include $ 79 billion and $ 126 billion with original maturity of less than one year at december 31, 2010 and december 31, 2009 , respectively.
 included in this line item are highly leveraged financing commitments , agreements provide funding to borrower with higher levels of debt ( measured by ratio of debt capital to equity capital borrower ) than normal for other companies.
 this type of financing commonly employed in corporate acquisitions , management buy-outs similar transactions.

in millions of dollars                                                         | december 31 2010 u.s . | december 31 2010 outside of u.s . | december 31 2010 total | december 31 2009
------------------------------------------------------------------------------ | ---------------------- | --------------------------------- | ---------------------- | ----------------
commercial and similar letters of credit                                       | $ 1544                 | $ 7430                            | $ 8974                 | $ 7211
one- to four-family residential mortgages                                      | 2582                   | 398                               | 2980                   | 1070
revolving open-end loans secured by one- to four-family residential properties | 17986                  | 2948                              | 20934                  | 23916
commercial real estate construction and land development                       | 1813                   | 594                               | 2407                   | 1704
credit card lines                                                              | 573945                 | 124728                            | 698673                 | 785495
commercial and other consumer loan commitments                                 | 124142                 | 86262                             | 210404                 | 257342
total                                                                          | $ 722012               | $ 222360                          | $ 944372               | $ 1076738