building.
 construction building completed in december 2003.
 due to lower than expected financing and construction costs , final lease balance lowered to $ 103. 0 million.
 as part of agreement , we entered into five-year lease began upon completion of building.
 at end of lease term , we can purchase building for lease balance , remarket or relinquish building.
 if we choose to remarket or required to upon relinquishing building , we bound to arrange sale of building to unrelated party and required to pay lessor any shortfall between net remarketing proceeds and lease balance, up to maximum recourse amount of $ 90. 8 million ( 201cresidual value guarantee 201d ).
 see note 14 in notes to consolidated financial statements for further information.
 in august 1999 , entered five-year lease agreement for other two office buildings serve as corporate headquarters in san jose , california.
 under agreement option to purchase buildings at any time during lease term for lease balance , approximately $ 142. 5 million.
 in process of evaluating alternative financing methods at expiration of lease in fiscal 2004 believe several suitable financing options will be available to.
 at end of lease term , we can purchase buildings for lease balance , remarket or relinquish buildings.
 if choose to remarket or required to upon relinquishing buildings  bound to arrange sale of buildings to unrelated party and required to pay lessor any shortfall between net remarketing proceeds and lease balance , up to maximum recourse amount of $ 132. 6 million ( 201cresidual value guarantee 201d ).
 for further information see note 14 in notes to consolidated financial statements.
 two lease agreements discussed above subject to standard financial covenants.
 agreements limit amount of indebtedness we can incur.
leverage covenant requires us to keep debt to ebitda ratio less than 2. 5:1. 0.
 as of november 28 , 2003 , debt to ebitda ratio was 0. 53:1. 0  within limit.
 liquidity covenant requires maintain quick ratio equal to or greater than 1. 0.
 as of november 28 , 2003  quick ratio was 2. 2, above minimum.
 expect to remain within compliance in next 12 months.
 comfortable with these limitations believe they will not impact cash or credit coming year or restrict ability to execute business plan.
 table summarizes contractual commitments as of november 28, 2003 : less than over total 1 year 1 2013 3 years 3-5 years 5 years non-cancelable operating leases , net of sublease income.
 $ 83. 9 $ 23. 6 $ 25. 9 $ 16. 3 $ 18. 1 indemnifications in normal course business  provide indemnifications of varying scope to customers against claims of intellectual property infringement by third parties from use of products.
 costs related to indemnification provisions not significant unable to estimate maximum potential impact of indemnification provisions on future results of operations.
 commitments to make certain milestone and/or retention payments typically entered into in conjunction with various acquisitions  for made accruals in consolidated financial statements.
 connection with purchases of technology assets during fiscal 2003  entered employee retention agreements totaling $ 2. 2 million.
 required to make payments upon satisfaction of certain conditions in agreements.
 as permitted under delaware law  agreements indemnify officers and directors for certain events or occurrences while officer or director is or was serving at our request capacity.
 indemnification period covers all pertinent events and occurrences during officer 2019s or director 2019s lifetime.
 maximum potential amount of future payments required to under these indemnification agreements is unlimited ; we have director and officer insurance coverage limits our exposure and enables us to recover portion of future amounts paid.
 believe estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal.
 building.
 construction building completed in december 2003.
 due to lower than expected financing and construction costs final lease balance lowered to $ 103. 0 million.
 as part of agreement we entered into five-year lease began upon completion of building.
 at end of lease term , we can purchase building for lease balance , remarket or relinquish building.
 if we choose to remarket or required to do upon relinquishing building, we bound to arrange sale of building to unrelated party and required to pay lessor any shortfall between net remarketing proceeds and lease balance , up to maximum recourse amount of $ 90. 8 million ( 201cresidual value guarantee 201d ).
 see note 14 in notes to consolidated financial statements for further information.
 in august 1999  entered into five-year lease agreement for our other two office buildings as corporate headquarters in san jose , california.
 under agreement option to purchase buildings at any time during lease term for lease balance , is approximately $ 142. 5 million.
 in process of evaluating alternative financing methods at expiration of lease in fiscal 2004 believe several suitable financing options will be available to.
 at end of lease term  we can purchase buildings for lease balance , remarket or relinquish buildings.
if we choose to remarket or required to upon relinquishing buildings, bound to arrange sale of buildings to unrelated party required to pay lessor shortfall between net remarketing proceeds and lease balance , up to maximum recourse amount of $ 132. 6 million ( 201cresidual value guarantee 201d ).
 for further information see note 14 in notes to consolidated financial statements.
 two lease agreements subject to standard financial covenants.
 agreements limit indebtedness can incur.
 leverage covenant requires to keep debt to ebitda ratio less than 2. 5:1. 0.
 as of november 28, 2003 , debt to ebitda ratio was 0. 53:1. 0  within limit.
 liquidity covenant requires to maintain quick ratio equal to or greater than 1. 0.
 as of november 28 , 2003 , quick ratio was 2. 2 , above minimum.
 expect to remain within compliance in next 12 months.
 comfortable with these limitations believe they will not impact cash or credit coming year or restrict ability to execute business plan.
 following table summarizes contractual commitments as of november 28 , 2003 : less than over total 1 year 1 2013 3 years 3-5 years 5 years non-cancelable operating leases , net of sublease income.
 $ 83. 9 $ 23. 6 $ 25. 9 $ 16. 3 $ 18. 1 indemnifications in normal course of business provide indemnifications of varying scope to customers against claims of intellectual property infringement by third parties from use of our products.
 historically costs related to these indemnification provisions not significant unable to estimate maximum potential impact of these indemnification provisions on future results of operations.
commitments to make certain milestone retention payments typically entered into in conjunction with various acquisitions , for made accruals in consolidated financial statements.
 in connection with purchases of technology assets during fiscal 2003 , entered employee retention agreements totaling $ 2. 2 million.
 required to make payments upon satisfaction of certain conditions in agreements.
 as permitted under delaware law , agreements indemnify officers and directors for certain events or occurrences while officer or director is , or was serving  at our request in capacity.
 indemnification period covers all pertinent events occurrences during officer 2019s or director 2019s lifetime.
 maximum potential amount of future payments to under these indemnification agreements is unlimited ; director and officer insurance coverage limits exposure enables us to recover portion of future amounts paid.
 believe estimated fair value of indemnification agreements in excess of applicable insurance coverage is minimal.

| total  | less than 1 year | 1-3 years | 3-5 years | over 5 years
------------------------------------------------------ | ------ | ---------------- | --------- | --------- | ------------
non-cancelable operating leases net of sublease income | $ 83.9 | $ 23.6           | $ 25.9    | $ 16.3    | $ 18.1


american tower corporation subsidiaries notes consolidated financial statements valuation allowance increased from $ 47. 8 million december 31 2009 to $ 48. 2 million december 31  2010.
 increase primarily due to valuation allowances on foreign loss carryforwards.
 at december 31 , 2010 company provided valuation allowance of approximately $ 48. 2 million primarily relates to state net operating loss carryforwards  equity investments foreign items.
 company not provided valuation allowance for remaining deferred tax assets primarily federal net operating loss carryforwards management believes company sufficient taxable income to realize these federal net operating loss carryforwards during twenty-year tax carryforward period.
 valuation allowances may be reversed if related deferred tax assets deemed realizable based on changes in facts circumstances relevant assets 2019 recoverability.
 recoverability of company 2019s remaining net deferred tax asset assessed utilizing projections based current operations.
 projections show significant decrease in depreciation in later years of carryforward period result of significant portion of assets fully depreciated during first fifteen years of carryforward period.
 recoverability of net deferred tax asset not dependent on material improvements to operations material asset sales or other non-routine transactions.
 based on current outlook of future taxable income during carryforward period management believes net deferred tax asset will be realized.
 company 2019s deferred tax assets as of december 31 , 2010 and 2009 table do not include $ 122. 1 million and $ 113. 9 million  of excess tax benefits from exercises employee stock options component of net operating losses.
 total stockholders 2019 equity as of december 31 , 2010 will be increased by $ 122. 1 million if when excess tax benefits realized.
december 31, 2010  company had net federal state operating loss carryforwards available to reduce future federal state taxable income approximately $ 1. 2 billion  including losses related employee stock options $ 0. 3 billion.
 if not utilized  company 2019s net operating loss carryforwards expire ( in thousands ) :.
 company has mexican tax credits $ 5. 2 million if not utilized expire in 2017.

years ended december 31, | federal   | state     | foreign
------------------------ | --------- | --------- | -------
2011 to 2015             | $ 2014    | $ 2014    | $ 503
2016 to 2020             | 2014      | 331315    | 5509
2021 to 2025             | 774209    | 576780    | 2014
2026 to 2030             | 423398    | 279908    | 92412
total                    | $ 1197607 | $ 1188003 | $ 98424


american tower corporation subsidiaries notes consolidated financial statements as of december 31, 2010 2009  company had $ 295. 4 million and $ 295. 0 million net  ( $ 300. 0 million aggregate principal amount ) outstanding under 7. 25% ( 7. 25 % ) notes.
 december 31, 2010 2009 carrying value includes discount of $ 4. 6 million $ 5. 0 million  respectively.
 5. 0% ( 5. 0 % ) convertible notes 2014the 5. 0% ( 5. 0 % ) convertible notes due 2010 ( 201c5. 0% ( 201c5. 0 % ) notes 201d ) matured february 15, 2010 interest payable semiannually february 15 august 15 each year.
 5. 0% ( 5. 0 % ) notes convertible into shares company 2019s class a common stock ( 201ccommon stock 201d ) conversion price of $ 51. 50 per share  subject to adjustment certain cases.
 as of december 31 , 2010 2009 company had none $ 59. 7 million outstanding  under 5. 0% ( 5. 0 % ) notes.
 ati 7. 25% ( 7. 25 % ) senior subordinated notes 2014the ati 7. 25% ( 7. 25 % ) notes issued maturity december 1 , 2011 interest payable semi-annually arrears june 1 december 1 each year.
 ati 7. 25% ( 7. 25 % ) notes jointly severally guaranteed senior subordinated basis by company all wholly owned domestic restricted subsidiaries of ati company other spectrasite subsidiaries.
 notes ranked junior in right of payment to all existing future senior indebtedness of ati  sister guarantors ( defined indenture relating notes ) domestic restricted subsidiaries.
 ati 7. 25% ( 7.25 % ) notes structurally senior right of payment to existing future indebtedness company including company 2019s senior notes  convertible notes revolving credit facility term loan.
 year ended december 31 , 2010 ati issued notice for redemption of principal amount outstanding ati 7. 25% ( 7. 25 % ) notes.
 accordance with redemption provisions indenture ati 7. 25% (. 25 % ) notes notes redeemed at price equal to 100. 00% ( 100. 00 % ) of principal amount plus accrued unpaid interest up to , excluding september 23 , 2010  for aggregate purchase price of $ 0. 3 million.
 as of december 31 , 2010 2009 company had none $ 0. 3 million  outstanding under ati 7. 25% ( 7. 25 % ) notes.
 capital lease obligations notes payable 2014the company 2019s capital lease obligations notes payable approximated $ 46. 3 million and $ 59. 0 million as of december 31 , 2010 2009 .
 obligations bear interest at rates from 2. 5% (. % ) to 9. 3% ( 9. 3 % ) mature periods less than one year to approximately seventy years.
 maturities 2014as of december 31 , 2010  aggregate carrying value of long-term debt  including capital leases for next five years thereafter estimated to be ( in thousands ) : year ending december 31.

2011                                   | $ 74896
-------------------------------------- | --------------
2012                                   | 625884
2013                                   | 618
2014                                   | 1750479
2015                                   | 600489
thereafter                             | 2541858
total cash obligations                 | 5594224
unamortized discounts and premiums net | -6836 ( 6836 )
balance as of december 31 2010         | $ 5587388


table of contents respect to mainline american and mainline us airways dispatchers , flight simulator engineers flight crew training instructors , all now represented by twu , rival organization , national association of airline professionals ( naap ) , filed single carrier applications seeking to represent those employees.
 nmb will to determine single transportation system exists certify post-merger representative of combined employee groups before process for negotiating new jcbas can begin.
 merger no impact on cbas cover employees of our wholly-owned subsidiary airlines not being merged ( envoy , piedmont psa ).
 for those employees , rla provides cbas do not expire , but become amendable as of stated date.
 in 2014 , envoy pilots ratified new 10 year collective bargaining agreement , piedmont pilots ratified new 10 year collective bargaining agreement piedmont flight attendants ratified new five-year collective bargaining agreement.
 with exception of passenger service employees now engaged in traditional rla negotiations expected to result in jcba us airways flight simulator engineers flight crew training instructors , other union-represented american mainline employees covered by agreements not currently amendable.
 until agreements become amendable  negotiations for jcbas conducted outside traditional rla bargaining process in meantime no self-help permissible.
 piedmont mechanics stock clerks psa and piedmont dispatchers also have agreements now amendable engaged in traditional rla negotiations.
 none of unions representing our employees may lawfully engage in concerted refusals to work , strikes , slow-downs , sick-outs or other similar activity , against us.
risk disgruntled employees with or without union involvement could engage in concerted refusals to work individually collectively harm operation our airline impair financial performance.
 for more discussion see part i , item 1a.
 risk factors 2013 201cunion disputes , employee strikes labor-related disruptions may affect operations. 201d aircraft fuel operations financial results affected by availability price of jet fuel.
 based on 2015 forecasted mainline regional fuel consumption estimate as of december 31 , 2014 one cent per gallon increase in aviation fuel price would increase 2015 annual fuel expense by $ 43 million.
 table shows annual aircraft fuel consumption costs including taxes for mainline operations for 2012 through 2014 ( gallons and aircraft fuel expense in millions ).
 year gallons average price per gallon aircraft fuel expense percent of total mainline operating expenses.
 ( a ) represents 201ccombined 201d financial data includes financial results of american and us airways group each standalone basis.
 total combined fuel expenses for wholly-owned and third-party regional carriers operating under capacity purchase agreements of american and us airways group each standalone basis were $ 2. 0 billion , $ 2. 1 billion and $ 2. 1 billion for years ended december 31 , 2014 , 2013 2012  respectively.

year       | gallons | average price per gallon | aircraft fuel expense | percent of total mainline operating expenses
---------- | ------- | ------------------------ | --------------------- | --------------------------------------------
2014       | 3644    | $ 2.91                   | $ 10592               | 33.2% ( 33.2 % )
2013 ( a ) | 3608    | 3.08                     | 11109                 | 35.4
2012 ( a ) | 3512    | 3.19                     | 11194                 | 35.8


united parcel service , inc.
 subsidiaries notes to consolidated financial statements floating-rate senior notes with principal amounts totaling $ 1. 043 billion  bear interest at one or three-month libor  less spread from 30 to 45 basis points.
 average interest rate for 2017 and 2016 was 0. 74% ( 0. 74 % ) and 0. 21% ( 0. 21 % ) ,.
 notes callable various times after 30 years at stated percentage of par value and putable by note holders various times after one year at stated percentage of par value.
 notes have maturities from 2049 through 2067.
 classified floating-rate senior notes putable by note holder as long-term liability  due to intent and ability to refinance debt if put option exercised by note holder.
 in march and november 2017 issued floating-rate senior notes in principal amounts of $ 147 and $ 64 million  included in $ 1. 043 billion floating-rate senior notes.
 notes bear interest at three-month libor less 30 and 35 basis points  mature in 2067.
 remaining three floating-rate senior notes in principal amounts of $ 350 , $ 400 and $ 500 million  bear interest at three-month libor  plus spread from 15 to 45 basis points.
 average interest rate for 2017 and 2016 was 0. 50% ( 0. 50 % ) and 0. 0% ( 0. 0 % ) .
 notes not callable.
 notes maturities from 2021 through 2023.
 classified floating-rate senior notes putable by note holder as long-term liability  due to intent and ability to refinance debt if put option exercised by note holder.
 capital lease obligations certain property , plant and equipment subject to capital leases.
 some obligations associated with capital leases legally defeased.
recorded value of our property  plant equipment subject to capital leases is as of december 31 ( in millions ) :.
 capital lease obligations have principal payments due at various dates from 2018 through 3005.
 facility notes bonds entered agreements with municipalities to finance construction of or improvements to facilities support our.
 domestic package supply chain & freight operations in united states.
 facilities located around airport properties in louisville , kentucky ; dallas , texas philadelphia , pennsylvania.
 arrangements we enter lease or loan agreement covers debt service obligations on bonds issued by municipalities : 2022 bonds with principal balance of $ 149 million issued by louisville regional airport authority associated with our worldport facility in louisville  kentucky.
 bonds due in january 2029 bear interest at variable rate  average interest rates for 2017 and 2016 were 0. 83% ( 0. 83 % ) and 0. 37% (. 37 % ) .
 2022 bonds with principal balance of $ 42 million due in november 2036 by louisville regional airport authority associated with our air freight facility in louisville  kentucky.
 bonds bear interest variable rate average interest rates for 2017 and 2016 were 0. 80% ( 0. 80 % ) and 0. 36% ( 0. 36 % ) .
 2022 bonds with principal balance of $ 29 million issued by dallas / fort worth international airport facility improvement corporation associated with our dallas , texas airport facilities.
 bonds due in may 2032 bear interest at variable rate variable cash flows on obligation swapped to fixed 5. 11% (. 11 % ).
2022 september 2015 entered agreement with delaware county pennsylvania industrial development authority associated with philadelphia  pennsylvania airport facilities for bonds issued with principal balance of $ 100 million.
 these bonds due september 2045 bear interest at variable rate.
 average interest rate for 2017 and 2016 was 0. 78% ( 0. 78 % ) and 0. 40% ( 0. 40 % ) respectively.

| 2017         | 2016
------------------------------------------------------ | ------------ | ------------
vehicles                                               | $ 70         | $ 68
aircraft                                               | 2291         | 2291
buildings                                              | 285          | 190
accumulated amortization                               | -990 ( 990 ) | -896 ( 896 )
property plant and equipment subject to capital leases | $ 1656       | $ 1653


pullmantur during 2013  operated four ships with aggre- gate capacity of approximately 7650 berths under pullmantur brand  offering cruise itineraries ranged from four to 12 nights throughout south america , caribbean europe.
 one ships , zenith , redeployed from pullmantur to cdf croisi e8res de france in january 2014.
 pullmantur serves contemporary segment spanish , portuguese latin american cruise markets.
 pullmantur 2019s strategy is to attract cruise guests from these target markets by providing variety of cruising options and onboard activities directed at couples families traveling with children.
 last years pullmantur increased focus on latin america.
 recognition pullmantur opened regional head office in panama place operating management closer to largest fastest growing market.
 to facilitate pullmantur 2019s ability focus on core cruise business in december 2013 pullmantur reached agreement to sell majority of inter- est in land-based tour operations , travel agency and pullmantur air , closing subject to customary closing conditions.
 agreement we will retain 19% ( 19 % ) interest in non-core businesses.
 retain ownership of pullmantur aircraft be dry leased to pullmantur air.
 cdf croisi e8res de france in january 2014  redeployed zenith from pullmantur to cdf croisi e8res de france.
 as of january 2014  operate two ships with aggregate capac- ity of approximately 2750 berths under cdf croisi e8res de france brand.
 during summer of 2014  cdf croisi e8res de france will operate both ships in europe and for first time brand will operate in caribbean during winter of 2014.
cdf croisi e8res de france offers seasonal itineraries to mediterranean.
 designed serve contemporary seg ment french cruise market providing brand tailored for french cruise guests.
 tui cruises designed serve contemporary and premium segments of german cruise market offering product tailored for german guests.
 all onboard activities , services  shore excursions menu offerings to suit preferences of this target market.
 tui cruises operates two ships  mein schiff 1 and mein schiff 2  aggregate capacity of approximately 3800 berths.
 tui cruises has two ships on order  each with capacity of 2500 berths scheduled for delivery in second quarter of 2014 and second quarter of 2015.
 tui cruises is joint venture owned 50% ( 50 % ) by us and 50% ( 50 % ) by tui ag , german tourism and shipping company owns 51% ( 51 % ) of tui travel , british tourism company.
 industry cruising well-established vacation sector in north american market growing sec tor in european market developing promising sector in other emerging markets.
 industry data indicates market penetration rates low significant portion of cruise guests are first-time cruisers.
 presents opportunity for long-term growth potential for increased profitability.
 table details market penetration rates for north america and europe computed based on number of annual cruise guests as percentage of total population : america ( 1 ) europe ( 2 ).
 ( 1 ) source : international monetary fund and cruise line international association based on cruise guests carried for at least two con- secutive nights for years 2009 through 2012.
 2013 amounts represent estimates.
 includes united states of america and canada.
 ( 2 ) source : international monetary fund and clia europe , formerly european cruise council  for years 2009 through 2012.
year 2013 amounts represent estimates.
 estimate global cruise fleet was served by approximately 436000 berths on 269 ships at end of 2013.
 approximately 26 ships with estimated 71000 berths expected to be placed in service in global cruise market between 2014 and 2018, possible ships could be ordered or taken out of service during these periods.
 estimate global cruise industry carried 21. 3 million cruise guests in 2013 compared to 20. 9 million cruise guests in 2012 and 20. 2 million cruise guests in 2011.

year | north america ( 1 ) | europe ( 2 )
---- | ------------------- | --------------
2009 | 3.0% ( 3.0 % )      | 1.0% ( 1.0 % )
2010 | 3.1% ( 3.1 % )      | 1.1% ( 1.1 % )
2011 | 3.4% ( 3.4 % )      | 1.1% ( 1.1 % )
2012 | 3.3% ( 3.3 % )      | 1.2% ( 1.2 % )
2013 | 3.4% ( 3.4 % )      | 1.2% ( 1.2 % )


net sales increased $ 29. 9 million  or 6. 3% ( 6. 3 % ) due to higher sales volume by improvement in.
 home products market benefit from new product introductions price increases to mitigate raw material cost increases.
 operating income increased $ 12. 6 million  or 20. 4% ( 20. 4 % )  due to higher net sales benefits from productivity improvements leveraging sales on existing fixed cost base.
 security net sales increased $ 12. 8 million  or 2. 2% ( 2. 2 % ) due to higher sales volume price increases to mitigate raw material cost increases.
 benefits partially offset by impact exiting of two product lines in commercial distribution channel.
 operating income increased $ 5. 8 million  or 8. 7% ( 8. 7 % )  due to higher net sales benefits from productivity improvements lower restructuring other charges ( approximately $ 6 million ) relating to completion in 2016 manufacturing facility relocation favorable foreign exchange related cost savings from facility relocation.
 corporate expenses increased by $ 5. 7 million due to impairment of long lived asset recognition actuarial gain versus actuarial loss in 2016 higher defined benefit plan income during 2017 compared to 2016.
 in millions ) 2017 2016.
 future periods company may record corporate segment material expense or income associated with actuarial gains losses from periodic remeasurement of liabilities for defined benefit plans.
 company will remeasure defined benefit plan liabilities in fourth quarter of each year.
 remeasurements due to plan amendments settlements may occur in interim periods during year.
 remeasurement of liabilities attributable to updating liability discount rates expected return on assets may result in material income or expense recognition.
 2016 compared to 2015 total fortune brands net sales increased $ 405.5 million , or 9% ( 9 % ).
 increase due to higher sales volume from improvement in u. s.
 market conditions for home products  benefit from acquisitions in cabinets and plumbing segments price increases to mitigate raw material cost increases effect of unfavorable foreign exchange.
 benefits partially offset by unfavorable foreign exchange of approximately $ 27 million higher sales rebates.
 cost of products sold cost increased $ 182. 8 million , or 6% ( 6 % ) due to higher net sales including impact of acquisitions in cabinets and plumbing segments partially offset by benefit productivity improvements.

( in millions )                                                | 2017             | 2016
-------------------------------------------------------------- | ---------------- | ----------------
general and administrative expense                             | $ -90.3 ( 90.3 ) | $ -80.9 ( 80.9 )
defined benefit plan income                                    | 4.2              | 2.9
defined benefit plan recognition of actuarial gains ( losses ) | 0.5              | -1.9 ( 1.9 )
total corporate expenses                                       | $ -85.6 ( 85.6 ) | $ -79.9 ( 79.9 )


investment securities table 11 : details investment securities.
 ( a ) includes $ 367 million amortized cost and fair value of securities corporate stocks and other at december 31 , 2012.
 at december 31 , 2011  amortized cost and fair value of corporate stocks other was $ 368 million.
 remainder securities for sale were debt securities.
 carrying amount of investment securities totaled $ 61. 4 billion at december 31 , 2012 up of $ 51. 0 billion securities available for sale carried at fair value and $ 10. 4 billion securities held to maturity carried at amortized cost.
 at december 31, 2011  carrying value investment securities totaled $ 60. 6 billion $ 48. 6 billion securities available for sale at fair value $ 12. 0 billion securities held to maturity at amortized cost.
 increase in carrying amount between periods reflected increase of $ 2. 0 billion in available for sale asset-backed securities due to net purchase activity increase of $. 6 billion in available for sale non-agency residential mortgage-backed securities due to increases in fair value at december 31 , 2012.
 increases offset by $ 1. 7 billion decrease in held to maturity debt securities due to principal payments.
 investment securities represented 20% ( 20 % ) of total assets at december 31 , 2012 and 22% ( 22 % ) at december 31 , 2011.
 evaluate portfolio of investment securities changing market conditions take steps to improve overall positioning.
 consider portfolio well-diversified high quality.
.
 treasury and government agencies , agency residential mortgage-backed and agency commercial mortgage-backed securities represented 59% ( 59 % ) of investment securities portfolio at december 31 , 2012.
 december securities available for sale portfolio included net unrealized gain of $ 1.6 billion represented difference between fair value and amortized cost.
 comparable amount at december 31 , 2011 was net unrealized loss of $ 41 million.
 fair value of investment securities impacted by interest rates credit spreads market volatility liquidity conditions.
 fair value decreases when interest rates increase vice versa.
 fair value decreases when credit spreads widen vice versa.
 improvement in net unrealized gain compared with loss at december 31 , 2011 primarily due to improvement in value of non-agency residential mortgage- backed securities decrease in net unrealized losses of $ 1. 1 billion lower market interest rates.
 net unrealized gains and losses in securities for sale portfolio included in shareholders 2019 equity as accumulated other comprehensive income or loss from continuing operations net of tax on consolidated balance sheet.
 additional information regarding investment securities included in note 8 investment securities and note 9 fair value in notes to consolidated financial statements in item 8 report.
 unrealized gains and losses on for sale securities do not impact liquidity or risk-based capital under effective capital rules.
 reductions in credit ratings of securities could impact on liquidity securities or determination of risk- weighted assets could reduce regulatory capital ratios under capital rules.
 credit-related portion of otti on available for sale securities would reduce earnings and regulatory capital ratios.
 expected weighted-average life of investment securities ( excluding corporate stocks was 4. 0 years at december 31 , 2012 and 3. 7 years at december 31 , 2011.
 at december 31 , 2012 effective duration of investment securities was 2. 3 years for immediate 50 basis points parallel increase in interest rates 2. 2 years for immediate 50 basis points parallel decrease in interest rates.
 comparable amounts at december 31 , 2011 were 2. 6 years and 2.4 years , respectively.
 following table provides detail vintage  current credit rating fico score of underlying collateral at origination where available for residential mortgage-backed commercial mortgage-backed other asset-backed securities held in available for sale to maturity portfolios : 46 pnc financial services group , inc.
 2013 form 10-k

in millions                               | december 31 2012 amortized cost | december 31 2012 fair value | december 31 2012 amortized cost | fair value
----------------------------------------- | ------------------------------- | --------------------------- | ------------------------------- | ----------
total securities available for sale ( a ) | $ 49447                         | $ 51052                     | $ 48609                         | $ 48568
total securities held to maturity         | 10354                           | 10860                       | 12066                           | 12450
total securities                          | $ 59801                         | $ 61912                     | $ 60675                         | $ 61018


item 7a quantitative qualitative disclosures about market risk exposed to market risk from changes in interest rates  foreign exchange rates commodity prices equity prices.
 changes factors could cause fluctuations in our earnings cash flows.
 normal course business actively manage exposure to market risks by entering into hedging trans- actions  authorized under our policies clear controls on activities.
 counterparties in transactions are generally highly rated institutions.
 establish credit limits for each counterparty.
 hedging transactions include not limited to variety of deriv- ative financial instruments.
 interest rates manage debt structure interest rate risk through use of fixed- floating-rate debt derivatives.
 use interest rate swaps forward-starting interest rate swaps to hedge exposure to interest rate changes reduce volatility of financing costs.
 under swaps agree with counterparty to exchange difference between fixed- rate and floating-rate interest amounts based on agreed notional principal amount.
 primary exposure is to u. s.
 interest rates.
 as of may 28 , 2006 , had $ 7. 0 billion of aggregate notional principal amount ( principal amount fixed or floating interest rate calculated ) outstanding.
 includes notional amounts of offsetting swaps neutralize exposure to interest rates on other interest rate swaps.
 see note six to consolidated finan- cial statements on pages 40 through 42 in item eight of report.
 foreign currency rates foreign currency fluctuations can affect net investments earnings denominated in foreign currencies.
 primarily use foreign currency forward contracts option contracts to hedge cash flow exposure to changes in exchange rates.
 contracts function as hedges change in value inversely to change underlying exposure as foreign exchange rates fluctuate.
 primary u. s.
 dollar exchange rate exposures are with canadian dollar , euro , australian dollar  mexican peso british pound.
commodities many commodities we use in produc- tion distribution of our products exposed to market price risks.
 we manage this market risk through inte grated financial instruments  including purchase orders  noncancelable contracts  futures contracts  options swaps.
 primary commodity price exposures are to cereal grains  sugar  dairy products vegetables  fruits meats vegetable oils other agricultural products paper and plastic packaging materials operating supplies energy.
 equity instruments equity price movements affect our compensation expense as certain investments owned by employees are revalued.
 we use equity swaps to manage market risk.
 value at risk estimates to measure maximum potential fair value we could lose from adverse changes in market interest rates foreign exchange rates commodity prices equity prices under normal market conditions.
 monte carlo ( var ) method- ology used to quantify market risk for exposures.
 models assumed normal market conditions used 95 percent confidence level.
 var calculation used historical interest rates  foreign exchange rates commodity equity prices from past year to estimate potential volatility correlation of rates in future.
 market data drawn from riskmetricstm data set.
 calculations not intended to represent actual losses in fair value we expect to incur.
 hedging instrument ( derivative ) inversely correlates with underlying expo- sure  expect any loss or gain in fair value of derivatives would be offset by increase or decrease in fair value of underlying exposures.
 positions included in calculations were : debt ; invest- ments ; interest rate swaps ; foreign exchange forwards ; commodity swaps , futures and options ; equity instru- ments.
 calculations do not include underlying foreign exchange and commodities-related positions hedged by these market-risk-sensitive instruments.
table presents estimated maximum tial one-day loss in fair value for our interest rate  foreign currency commodity equity market-risk-sensitive instruments outstanding on may 28 , 2006 may 29 , 2005 , average amount outstanding during year ended may 28 , 2006.
 amounts calculated using var methodology described above.

in millions                  | fair value impact may 282006 | fair value impact averageduring2006 | fair value impact may 292005
---------------------------- | ---------------------------- | ----------------------------------- | ----------------------------
interest rate instruments    | $ 8                          | $ 10                                | $ 18
foreign currency instruments | 2                            | 1                                   | 1
commodity instruments        | 2                            | 2                                   | 1
equity instruments           | 1                            | 1                                   | 2013


n o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s ( c o n t i n u e d ) realization of investment gain ( $ 5624 net of award ).
 this award  paid out over three-year period presented as deferred compensation award on balance sheet.
 as of december 31 , 2002 , $ 1504 paid against this compensation award.
 401 ( k ) plan during august 1997  company implemented 401 ( k ) savings/retirement plan ( 201c401 ( k ) plan 201d ) to cover eligible employees company and designated affiliate.
 401 ( k ) plan permits eligible employees company to defer up to 15% ( 15 % ) of annual compensation  subject to limitations by code.
 employees 2019 elec tive deferrals immediately vested and non-forfeitable upon contribution to 401 ( k ) plan.
 during 2000  company amended 401 ( k ) plan to include matching contribution  subject to limitations equal to 50% ( 50 % ) of first 4% ( 4 % ) of annual compensation deferred by employee.
 for years ended december 31 , 2002 , 2001 and 2000  company made matching contributions of $ 140 , $ 116 and $ 54 , respectively.
.
 commitments company and operating partnership not involved in material litigation nor material litigation threatened against them or properties other routine litigation business.
 management believes costs  incurred by company and operating partnership related to litigation will not affect financial position , operating results or liquidity of company and operating partnership.
 on october 24 , 2001  accident occurred at 215 park avenue south , property company manages but does not own.
personal injury claims filed against company others by 11 persons.
 company believes sufficient insurance coverage to cover cost of such claims  other personal injury or property claims.
 company entered into employment agreements with certain executives.
 six executives have employment agreements expire between november 2003 and december 2007.
 cash based compensation with employment agreements totals approximately $ 2125 for 2003.
 during march 1998  company acquired operating sub-leasehold position at 420 lexington avenue.
 oper sub-leasehold position requires annual ground lease payments totaling $ 6000 and sub-leasehold position pay- ments totaling $ 1100 ( excluding operating sub-lease position purchased january 1999 ).
 ground lease and sub-leasehold positions expire 2008.
 company may extend positions through 2029 at market rents.
 property at 1140 avenue of the americas operates under net ground lease ( $ 348 annually ) with term expiration date of 2016 option to renew for additional 50 years.
 property at 711 third avenue operates under operating sub-lease expires in 2083.
 sub- lease company responsible for ground rent payments of $ 1600 annually increased to $ 3100 in july 2001 continue for next ten years.
 ground rent reset after year ten based on estimated fair market value of property.
 in april 1988 sl green predecessor entered lease agreement for property at 673 first avenue in new york city capitalized for financial statement purposes.
 land estimated to be approximately 70% ( % ) of fair market value of property.
 portion of lease attributed to land classified as operating lease remainder as a capital lease.
 initial lease term is 49 years with option for additional 26 years.
 beginning in lease years 11 and 25 lessor entitled to additional rent as defined by lease agreement.
company continues lease 673 first avenue prop- erty classified as capital lease cost basis $ 12208 cumulative amortization $ 3579 $ 3306 at december 31 , 2002 2001  respectively.
 fol lowing schedule of future minimum lease payments under capital leases noncancellable operating leases initial terms excess one year as of december 31 , 2002.
 non-cancellable operating december 31  capital leases leases.
 19.
 financial instruments : derivatives hedging financial accounting standards board 2019s statement no.
 133 , 201caccounting for derivative instruments hedging activities, 201d ( 201csfas 133 201d ) effective january 1, 2001 requires company recognize all derivatives on balance sheet at fair value.
 derivatives not hedges must adjusted to fair value through income.
 if derivative hedge  depending nature hedge f i f t y - t w o s l g r e e n r e a l t y c o r p.

december 31,                                | capital leases | non-cancellable operating leases
------------------------------------------- | -------------- | --------------------------------
2003                                        | $ 1290         | $ 11982
2004                                        | 1290           | 11982
2005                                        | 1290           | 11982
2006                                        | 1322           | 11982
2007                                        | 1416           | 11982
thereafter                                  | 56406          | 296277
total minimum lease payments                | 63014          | 356187
less amount representing interest           | 47152          | 2014
present value of net minimum lease payments | $ 15862        | $ 356187


ordinary course of business based on evaluations of geologic trends prospective economics allowed certain lease acreage to expire may allow additional acreage to expire in future.
 if production not established or no other action to extend terms of leases , licenses  concessions undeveloped acreage listed in table below will expire over next three years.
 plan to continue terms of many licenses and concession areas or retain leases through operational or administrative actions.
 net undeveloped acres expiring year ended december 31.
 oil sands mining segment we hold 20 percent non-operated interest in aosp , oil sands mining and upgrading joint venture in alberta , canada.
 joint venture produces bitumen from oil sands deposits in athabasca region mining techniques upgrades bitumen to synthetic crude oils vacuum gas oil.
 aosp 2019s mining and extraction assets located near fort mcmurray , alberta include muskeg river jackpine mines.
 gross design capacity of combined mines is 255000 ( 51000 net to interest ) barrels of bitumen per day.
 aosp operations use established processes to mine oil sands deposits from open-pit mine extract bitumen upgrade into synthetic crude oils.
 ore mined using traditional truck and shovel mining techniques.
 mined ore passes through primary crushers to reduce ore chunks in size sent to rotary breakers ore chunks further reduced to smaller particles.
 particles combined with hot water to create slurry.
 slurry moves through extraction process separates into sand  clay bitumen-rich froth.
 solvent added to bitumen froth to separate remaining solids water heavy asphaltenes.
solvent washes sand produces clean bitumen required for upgrader to run efficiently.
 process yields mixture of solvent and bitumen transported from mine to scotford upgrader via 300-mile corridor pipeline.
 aosp's scotford upgrader located at fort saskatchewan  northeast of edmonton, alberta.
 bitumen upgraded at scotford using hydrotreating and hydroconversion processes to remove sulfur break heavy bitumen molecules into lighter products.
 blendstocks acquired from outside sources utilized in production of saleable products.
 upgrader produces synthetic crude oils and vacuum gas oil.
 vacuum gas oil sold to affiliate of operator under long-term contract at market-related prices other products sold in marketplace.
 as of december 31 , 2014 we own or have rights to participate in developed and undeveloped leases totaling approximately 163000 gross ( 33000 net ) acres.
 underlying developed leases held for duration of project royalties payable to province of alberta.
 synthetic crude oil sales volumes for 2014 averaged 50 mbbld net-of-royalty production was 41 mbbld.
 in december 2013 jackpine mine expansion project received conditional approval from canadian government.
 project includes additional mining areas processing facilities infrastructure.
 government conditions relate to wildlife  environment aboriginal health issues.
 will evaluate potential expansion project and government conditions after infrastructure reliability initiatives completed.
 governments of alberta and canada agreed to partially fund quest ccs for $ 865 million canadian.
 in third quarter of 2012 energy and resources conservation board ( ) alberta's primary energy regulator conditionally approved project aosp partners approved proceeding to construct and operate quest ccs.
government funding commenced 2012 continued as milestones achieved during development , construction operating phases.
 failure of aosp to meet timing  performance operating objectives may result in repaying some government funding.
 construction commissioning of quest ccs expected to be completed by late 2015.

( in thousands )    | net undeveloped acres expiring year ended december 31 , 2015 | net undeveloped acres expiring year ended december 31 , 2016 | net undeveloped acres expiring year ended december 31 , 2017
------------------- | ------------------------------------------------------------ | ------------------------------------------------------------ | ------------------------------------------------------------
u.s .               | 211                                                          | 150                                                          | 94
e.g .               | 36                                                           | 2014                                                         | 2014
other africa        | 1950                                                         | 1502                                                         | 1089
total africa        | 1986                                                         | 1502                                                         | 1089
other international | 88                                                           | 2014                                                         | 2014
total               | 2285                                                         | 1652                                                         | 1183


altria group , inc.
 and subsidiaries notes to consolidated financial statements _________________________ may not be obtainable in all cases.
 risk substantially reduced given 47 states and puerto rico limit dollar amount of bonds or require no bond at all.
 discussed  tobacco litigation plaintiffs have challenged constitutionality of florida 2019s bond cap statute in several cases and plaintiffs may challenge state bond cap statutes in other jurisdictions.
 such challenges may include applicability of state bond caps in federal court.
 states , including florida , may seek to repeal or alter bond cap statutes through legislation.
 altria group , inc.
 cannot predict outcome of such challenges, possible consolidated results of operations, cash flows or financial position of altria group , inc. or one or more its subsidiaries could be materially affected in particular fiscal quarter or fiscal year by unfavorable outcome of one or more such challenges.
 altria group , inc.
 subsidiaries record provisions in consolidated financial statements for pending litigation when determine unfavorable outcome is probable and amount of loss can be reasonably estimated.
 present time reasonably possible unfavorable outcome in case may occur except to extent discussed in note 19.
 contingencies : i ) management concluded not probable loss incurred in pending tobacco-related cases ; ii ) management unable to estimate possible loss or range of loss could result from unfavorable outcome in pending tobacco-related cases ; iii ) management not provided amounts in consolidated financial statements for unfavorable outcomes , if any.
 litigation defense costs are expensed as incurred.
 altria group , inc.
 and subsidiaries achieved substantial success in managing litigation.
nevertheless , litigation subject to uncertainty significant challenges remain.
 possible consolidated results of operations , cash flows or financial position of altria group , inc. , or one or more of its subsidiaries, could be materially affected in particular fiscal quarter or fiscal year by unfavorable outcome or settlement of pending litigation.
 altria group , inc.
 and each its subsidiaries as defendant believe  each advised by counsel cases, it has valid defenses to litigation pending against it valid bases for appeal of adverse verdicts.
 each companies defended  and will continue to defend  vigorously against litigation challenges.
 altria group , inc.
 and its subsidiaries may enter into settlement discussions in particular cases if believe in best interests of altria group , inc.
 to.
 overview of altria group , inc.
pm usa tobacco- related litigation types number of cases : claims related to tobacco products fall within categories : ( i ) smoking and health cases alleging personal injury on behalf of individual plaintiffs ; ( ii ) smoking health cases primarily alleging personal injury or seeking court-supervised programs for medical monitoring brought on behalf of class of individual plaintiffs  including cases aggregated claims of individual plaintiffs tried in single proceeding ; ( iii ) health care cost recovery cases by governmental domestic foreign plaintiffs seeking reimbursement for health care expenditures caused by cigarette smoking disgorgement of profits ; ( iv ) class action suits alleging terms 201clights 201d 201cultra lights 201d deceptive unfair trade practices  common law statutory fraud  unjust enrichment  breach of warranty violations of racketeer influenced corrupt organizations act ( 201crico 201d ) ; ( v ) other tobacco-related litigation described below.
 plaintiffs 2019 theories of recovery defenses raised in pending smoking health , health care cost recovery 201clights/ultra lights 201d cases discussed below.
 table below lists number of certain tobacco-related cases pending in united states against pm usa ( 1 ) altria group , inc.
 as of december 31 , 2016 , 2015 2014:.
 ( 1 ) not include 25 cases filed on asbestos docket in circuit court for baltimore city , maryland  join pm usa other cigarette- manufacturing defendants in complaints against asbestos companies.
 ( 2 ) not include 2485 cases by flight attendants seeking compensatory damages for personal injuries caused by exposure to environmental tobacco smoke ( 201cets 201d ).
flight attendants allege members of ets smoking and health class action in florida settled in 1997 (.
 terms court-approved settlement allowed class members to file individual lawsuits seeking compensatory damages prohibited from seeking punitive damages.
 not include individual smoking and health cases brought by or on behalf of plaintiffs in florida state and federal courts following decertification of engle case ( discussed in smoking and health litigation - engle class action ).
 ( 3 ) includes one case 600 civil actions ( 344 actions against pm usa ) tried in single proceeding in west virginia ( re : tobacco litigation ).
 west virginia supreme court of appeals ruled united states constitution did not preclude trial in two phases case.
 issues related to defendants 2019 conduct and whether punitive damages permissible tried in first phase.
 trial in first phase began in april 2013.
 may 2013  jury returned verdict in favor of defendants on claims for design defect  negligence  failure to warn  breach of warranty  concealment declined to find defendants 2019 conduct warranted punitive damages.
 plaintiffs prevailed on claim ventilated filter cigarettes should have included use instructions for period 1964 - 1969.
 second phase consist of trials to determine liability and compensatory damages.
 in november 2014  west virginia supreme court of appeals affirmed final judgment.
 in july 2015 trial court entered order result in entry of final judgment in favor of defendants against all but 30 plaintiffs who potentially have claim against one or more defendants may be pursued in second phase of trial.
 court intends to try claims of these 30 plaintiffs in six consolidated trials each with group of five plaintiffs.
 first trial scheduled to begin may 1 , 2018.
dates five remaining consolidated trials not scheduled.
 ( 4 see health care cost recovery litigation federal government 2019s lawsuit below.

| 2016 | 2015 | 2014
----------------------------------------------------------------------- | ---- | ---- | ----
individual smoking and health cases ( 2 )                               | 70   | 65   | 67
smoking and health class actions and aggregated claims litigation ( 3 ) | 5    | 5    | 5
health care cost recovery actions ( 4 )                                 | 1    | 1    | 1
201clights/ultra lights 201d class actions                              | 8    | 11   | 12


mission systems training mst business segment provides ship submarine mission combat systems ; mission systems sensors for rotary fixed-wing aircraft sea land-based missile defense systems radar systems littoral combat ships simulation training services unmanned systems technologies.
 mst 2019s major programs include aegis combat system littoral combat ship mh-60  tpq-53 radar system mk-41 vertical launching system.
 mst 2019s operating results included in millions ) :.
 2014 compared to 2013 mst 2019s net sales for 2014 comparable to 2013.
 net sales decreased by approximately $ 85 million for undersea systems programs due to decreased volume deliveries about $ 55 million related to settlements of contract cost matters on certain programs including terminated presidential helicopter program ) in 2013 not repeated in 2014.
 decreases offset by higher net sales of approximately $ 80 million for integrated warfare systems sensors programs due to increased volume primarily space fence ) approximately $ 40 million for training logistics solutions programs due to increased deliveries primarily close combat tactical trainer ).
 mst 2019s operating profit for 2014 decreased $ 62 million  or 7% ( 7 % )  compared to 2013.
 decrease attributable to lower operating profit of approximately $ 120 million related to settlements of contract cost matters programs including terminated presidential helicopter program 2013 not repeated in 2014 approximately $ 45 million due to higher reserves on training logistics solutions programs.
 decreases partially offset by higher operating profit of approximately $ 45 million for performance matters reserves recorded in 2013 not repeated in 2014 about $ 60 million for programs due to increased risk retirements including mh-60 radar surveillance programs ).
 adjustments not related to volume  including net profit booking rate adjustments other matters approximately $ 50 million lower for 2014 compared to 2013.
2013 compared to 2012 mst 2019s net sales 2013 decreased $ 426 million or 6% ( 6 % ) 2012.
 decrease attributable to lower net sales of $ 275 million for ship and aviation systems programs due to lower volume primarily ptds final surveillance system deliveries occurred second quarter 2012 ) $ 195 million for integrated warfare systems and sensors programs primarily naval systems ) due to lower volume $ 65 million for training and logistics programs due to lower volume $ 55 million for aegis program due to lower volume.
 decreases partially offset by higher net sales of $ 155 million for lcs program due to increased volume.
 mst 2019s operating profit for 2013 increased $ 168 million or 23% ( 23 % ) compared to 2012.
 increase attributable to higher operating profit of $ 120 million related to settlement of contract cost matters on programs including terminated presidential helicopter program ) $ 55 million for integrated warfare systems and sensors programs radar halifax class modernization programs due to increased risk retirements $ 30 million for undersea systems programs due to increased risk retirements.
 increases partially offset by lower operating profit of $ 55 million for training and logistics programs due to recording of $ 30 million of charges related to lower-of-cost-or-market considerations $ 25 million for ship and aviation systems programs primarily ptds ) due to lower risk retirements and volume.
 operating profit related to lcs program comparable.
 adjustments not related to volume net profit booking rate adjustments other matters approximately $ 170 million higher for 2013 compared to 2012.
 backlog backlog increased in 2014 2013 due to higher orders on new program starts ( space fence ).
backlog increased slightly 2013 compared to 2012 mainly due to higher orders lower sales on integrated warfare system sensors programs primarily aegis ) lower sales service programs partially offset by lower orders ship aviation systems primarily mh-60 ).

| 2014             | 2013             | 2012
------------------- | ---------------- | ---------------- | --------------
net sales           | $ 7147           | $ 7153           | $ 7579
operating profit    | 843              | 905              | 737
operating margins   | 11.8% ( 11.8 % ) | 12.7% ( 12.7 % ) | 9.7% ( 9.7 % )
backlog at year-end | $ 11700          | $ 10800          | $ 10700


notes to consolidated financial statements table presents information regarding group inc. 2019s regulatory capital ratios tier 1 leverage ratio under basel i  implemented by federal reserve board.
 information as of december 2013 reflects revised market risk regulatory capital requirements.
 changes resulted in increased regulatory capital requirements for market risk.
 information as of december 2012 prior to implementation revised market risk regulatory capital requirements.
 revised capital framework u. s.
 federal bank regulatory agencies ( agencies ) approved revised risk-based capital and leverage ratio regulations establishing new comprehensive capital framework for u. s.
 banking organizations ( revised capital framework ).
 regulations based on basel committee 2019s december 2010 final capital framework for strengthening international capital standards ( basel iii ) implement provisions of dodd-frank act.
 under revised capital framework  group inc.
 is 201cadvanced approach 201d banking organization.
 below aspects of rules relevant to firm  advanced approach banking organization.
 definition of capital capital ratios.
 revised capital framework introduced changes to definition of regulatory capital  to transitional provisions became effective across firm 2019s regulatory capital leverage ratios on january 1 , 2014.
 changes include introduction of new capital measure called common equity tier 1 ( cet1 )  related regulatory capital ratio of cet1 to rwas ( cet1 ratio ).
 definition of tier 1 capital narrowed to include only cet1 instruments perpetual non- cumulative preferred stock , meet certain criteria.
 revised requirements phase in over time.
 include increases in minimum capital ratio requirements introduction of new capital buffers deductions from regulatory capital ( investments in nonconsolidated financial institutions ).
 junior subordinated debt issued to trusts phased out of regulatory capital.
 minimum cet1 ratio is 4. 0% ( 4.0 % ) of january 1 , 2014 increase to 4. 5% ( 4. 5 % ) on january 1 , 2015.
 minimum tier 1 capital ratio increased from 4. 0% ( 4. 0 % ) to 5. 5% ( 5. 5 % ) on january 1 , 2014 increase to 6. 0% ( 6. 0 % ) beginning january 1 , 2015.
 minimum total capital ratio remains unchanged at 8. 0% ( 8. 0 % ).
 minimum ratios supplemented by new capital conservation buffer phases in beginning january 1, 2016 increments of 0. 625% ( 0. 625 % ) per year until reaches 2. 5% ( 2. 5 % ) on january 1 , 2019.
 revised capital framework introduces new counter-cyclical capital buffer  imposed national supervisors necessary to counteract excessive credit growth.
 risk-weighted assets.
 february 2014 federal reserve board informed completed satisfactory 201cparallel run , 201d required advanced approach banking organizations under revised capital framework changes to rwas take effect beginning second quarter of 2014.
 calculation of rwas in future quarters based on methodologies : 2030 first quarter of 2014 basel i risk-based capital framework adjusted for certain items related to existing capital deductions and phase-in of new capital deductions ( basel i adjusted ) ; 2030 remaining quarters of 2014 higher of rwas computed under basel iii advanced approach or basel i adjusted calculation ; 2030 first quarter of 2015 2014 higher of rwas computed under basel iii advanced or standardized approach.
 goldman sachs 2013 annual report 191

$ in millions         | as of december 2013 | as of december 2012
--------------------- | ------------------- | -------------------
tier 1 capital        | $ 72471             | $ 66977
tier 2 capital        | $ 13632             | $ 13429
total capital         | $ 86103             | $ 80406
risk-weighted assets  | $ 433226            | $ 399928
tier 1 capital ratio  | 16.7% ( 16.7 % )    | 16.7% ( 16.7 % )
total capital ratio   | 19.9% ( 19.9 % )    | 20.1% ( 20.1 % )
tier 1 leverage ratio | 8.1% ( 8.1 % )      | 7.3% ( 7.3 % )


entergy new orleans , inc.
 management 2019s financial discussion analysis addition to contractual obligations has $ 53. 7 million of unrecognized tax benefits and interest net of unused tax attributes payments for timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in timing of effective settlement of tax positions.
 see note 3 to financial statements for additional information regarding unrecognized tax benefits.
 planned capital investment estimate for entergy new orleans reflects capital required to support existing business.
 estimated capital expenditures subject to periodic review modification may vary based on regulatory constraints environmental compliance  market volatility economic trends changes in project plans  ability to access capital.
 management provides more information on long-term debt preferred stock maturities in notes 5 and 6 financial statements.
 as indirect , wholly-owned subsidiary of entergy corporation  entergy new orleans pays dividends from earnings at percentage determined monthly.
 entergy 2019s long-term debt indentures contain restrictions on payment of cash dividends or other distributions on common and preferred stock.
 sources of capital entergy sources to meet capital requirements include : internally generated funds ; cash on hand ; debt and preferred stock issuances.
 entergy orleans may refinance , redeem retire debt and preferred stock prior to maturity market conditions interest and dividend rates are favorable.
 entergy 2019s receivables from money pool were as follows as of december 31 for each following years:.
 see note 4 to financial statements for description of money pool.
 entergy new orleans obtained short-term borrowing authorization from ferc may borrow through october 2013 up to aggregate amount time outstanding of $ 100 million.
note 4 to financial statements for discussion entergy new orleans 2019s short-term borrowing limits.
 long-term securities issuances limited to amounts authorized by city council current authorization extends through july 2012.
 entergy louisiana 2019s ninemile point unit 6 self-build project in june 2011  filed with lpsc application seeking certification public necessity convenience served by entergy 2019s construction of combined-cycle gas turbine generating facility ( ninemile 6 ) at existing ninemile point electric generating station.
 ninemile 6 nominally-sized 550 mw unit estimated to cost approximately $ 721 million to construct excluding interconnection transmission upgrades.
 entergy gulf states louisiana joined application seeking certification of purchase under life-of-unit power purchase agreement of up to 35% ( 35 % ) of capacity and energy generated by ninemile 6.
 ninemile 6 capacity energy proposed allocated 55% ( 55 % ) to entergy louisiana 25% ( 25 % ) to entergy gulf states louisiana  20% ( 20 % ) to entergy new orleans.
 february 2012 city council passed resolution authorizing entergy new orleans to purchase 20% ( 20 % ) of ninemile 6 energy and capacity.
 if approvals obtained from lpsc other permitting agencies ninemile 6 construction is

2011             | 2010             | 2009             | 2008
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 9074           | $ 21820          | $ 66149          | $ 60093


republic services , inc.
 notes to consolidated financial statements 2014 table summarizes activity in gross unrecognized tax benefits for years ended december 31:.
 during 2015  settled tax matters in various states puerto rico reduced gross unrecognized tax benefits by $ 13. 9 million.
 2014  settled tax matters in various jurisdictions reduced gross unrecognized tax benefits by $ 1. 5 million.
 during 2013  settled with irs appeals division joint committee on taxation 2009 and 2010 tax years.
 resolution of these tax periods state tax resolutions reduced gross unrecognized tax benefits by $ 20. 7 million.
 in gross unrecognized tax benefits as of december 31, 2015 and 2014 are $ 30. 5 million and $ 45. 6 million of unrecognized tax benefits ( net of federal benefit on state matters ) if recognized affect effective income tax rate in future periods.
 recognize interest and penalties as incurred within provision for income taxes in consolidated statements of income.
 related unrecognized tax benefits recorded interest expense of approximately $ 1. 2 million during 2015 total as of december 31 , 2015 recognized liability for penalties of $ 0. 5 million interest of $ 10. 3 million.
 during 2014  accrued interest of approximately $ 1. 5 million total as of december 31, 2014 recognized liability for penalties of $ 0. 5 million interest of $ 18. 7 million.
 during 2013  accrued interest of approximately $ 1. 2 million total as of december 31 , 2013 recognized liability for penalties of $ 0. 5 million interest of $ 17. 0 million.
gross unrecognized benefits we expect to settle in following twelve months range of $ 0 to $ 10 million ;, possible amount unrecognized tax benefits may increase or decrease in next twelve months.
 we currently under examination or administrative review by state and local taxing authorities for various tax years.
 state audits ongoing.
 believe recorded liabilities for uncertain tax positions are adequate.
, significant assessment against us in excess of liabilities recorded could have material adverse effect on our consolidated financial position, results of operations or cash flows.

| 2015           | 2014         | 2013
--------------------------------------------------------------------------- | -------------- | ------------ | --------------
balance at beginning of year                                                | $ 70.1         | $ 72.0       | $ 84.7
additions based on tax positions related to current year                    | 0.2            | 0.8          | 0.3
additions for tax positions of prior years                                  | 1.4            | 5.0          | 11.4
reductions for tax positions of prior years                                 | -10.2 ( 10.2 ) | -6.0 ( 6.0 ) | -2.4 ( 2.4 )
reductions for tax positions resulting from lapse of statute of limitations | -0.6 ( 0.6 )   | -0.2 ( 0.2 ) | -1.3 ( 1.3 )
settlements                                                                 | -13.9 ( 13.9 ) | -1.5 ( 1.5 ) | -20.7 ( 20.7 )
balance at end of year                                                      | $ 47.0         | $ 70.1       | $ 72.0


table sets components of foreign currency translation adjustments for fiscal 2011 , 2010 2009 ( in thousands ) : beginning balance foreign currency translation adjustments income tax effect relating to translation adjustments for undistributed foreign earnings ending balance $ 7632 ( 2208 ) $ 10580 $ 10640 ( 4144 ) $ 7632 $ ( 431 ) 17343 ( 6272 ) $ 10640 stock repurchase program to return value to stockholders minimize dilution from stock issuances repurchase shares in open market enter structured repurchase agreements with third-parties.
 authorization to repurchase shares to cover on-going dilution not subject to expiration.
 repurchase program limited to covering net dilution from stock issuances subject to business conditions cash flow requirements as determined by board of directors.
 third quarter of fiscal 2010  board of directors approved amendment to stock repurchase program authorized in april 2007 from non-expiring share-based authority to time-constrained dollar-based authority.
 amendment board granted authority to repurchase up to $ 1. 6 billion in common stock through end of fiscal 2012.
 amended program affect $ 250. 0 million structured stock repurchase agreement entered during march 2010.
 as of december 3 , 2010  no prepayments remain under agreement.
 during fiscal 2011 , 2010 2009  entered structured repurchase agreements with large financial institutions provided with prepayments totaling $ 695. 0 million , $ 850. 0 million $ 350. 0 million  respectively.
 of $ 850. 0 million of prepayments during fiscal 2010 , $ 250. 0 million was under stock repurchase program prior to program amendment remaining $ 600. 0 million under amended $ 1. 6 billion time-constrained dollar- based authority.
enter agreements to advantage repurchasing shares at guaranteed discount to volume weighted average price ( 201cvwap 201d ) of our common stock over specified period of time.
 only enter transactions when discount is higher than foregone return on our cash prepayments to financial institutions.
 no explicit commissions or fees on structured repurchases.
 agreements no requirement for financial institutions to return portion of prepayment to.
 financial institutions agree to deliver shares at monthly intervals during contract term.
 parameters to calculate number of shares deliverable are : total notional amount of contract  number of trading days in contract trading days interval and average vwap of our stock during interval less agreed upon discount.
 during fiscal 2011  repurchased approximately 21. 8 million shares at average price of $ 31. 81 through structured repurchase agreements fiscal 2011.
 during fiscal 2010  repurchased approximately 31. 2 million shares at average price of $ 29. 19 through structured repurchase agreements during fiscal 2009 and fiscal 2010.
 during fiscal 2009  repurchased approximately 15. 2 million shares at average price per share of $ 27. 89 through structured repurchase agreements during fiscal 2008 and fiscal 2009.
 for fiscal 2011 , 2010 and 2009  prepayments classified as treasury stock on consolidated balance sheets at payment date only shares physically delivered by december 2 , 2011 , december 3 , 2010 and november 27 , 2009 excluded from computation of earnings per share.
 as of december 2 , 2011 and december 3 , 2010  no prepayments remained under these agreements.
 as of november 27 , 2009  approximately $ 59. 9 million of prepayments remained under these agreements.
 subsequent to december 2 , 2011  part of our $ 1.6 billion stock repurchase program entered structured stock repurchase agreement with large financial institution provided prepayment of $ 80. 0 million.
 amount classified as treasury stock on consolidated balance sheets.
 upon completion of $ 80. 0 million stock table of contents adobe systems incorporated notes to consolidated financial statements jarcamo typewritten text.
 following table sets components of foreign currency translation adjustments for fiscal 2011 , 2010 2009 ( in thousands ) : beginning balance foreign currency translation adjustments income tax effect relating to translation adjustments for undistributed foreign earnings ending balance $ 7632 ( 2208 ) $ 10580 $ 10640 ( 4144 ) $ 7632 $ ( 431 ) 17343 ( 6272 ) $ 10640 stock repurchase program stock repurchase program to return value to stockholders minimize dilution from stock issuances repurchase shares in open market enter structured repurchase agreements with third-parties.
 authorization to repurchase shares to cover on-going dilution not subject to expiration.
 repurchase program limited to covering net dilution from stock issuances subject to business conditions cash flow requirements determined by board of directors.
 third quarter of fiscal 2010 board of directors approved amendment to stock repurchase program authorized april 2007 from non-expiring share-based authority to time-constrained dollar-based authority.
 amendment board of directors granted authority to repurchase up to $ 1. 6 billion in common stock through end of fiscal 2012.
 amended program not affect $ 250. 0 million structured stock repurchase agreement during march 2010.
 as of december 3 , 2010 no prepayments remain under agreement.
fiscal 2011 , 2010 2009 , we entered structured repurchase agreements with large financial institutions  provided financial institutions prepayments totaling $ 695. 0 million , $ 850. 0 million and $ 350. 0 million , respectively.
 of $ 850. 0 million of prepayments during fiscal 2010 , $ 250. 0 million was under stock repurchase program prior to program amendment remaining $ 600. 0 million under amended $ 1. 6 billion time-constrained dollar- based authority.
 enter agreements to take advantage repurchasing shares at guaranteed discount to volume weighted average price ( 201cvwap 201d ) of our common stock over specified period of time.
 only enter transactions when discount receive is higher than foregone return on cash prepayments to financial institutions.
 no explicit commissions or fees on structured repurchases.
 terms agreements no requirement for financial institutions to return portion of prepayment to us.
 financial institutions agree to deliver shares at monthly intervals during contract term.
 parameters to calculate number of shares deliverable are : total notional amount of contract , number of trading days in contract , number of trading days in interval average vwap of our stock during interval less agreed upon discount.
 during fiscal 2011  repurchased approximately 21. 8 million shares at average price of $ 31. 81 through structured repurchase agreements during fiscal 2011.
 fiscal 2010 , repurchased approximately 31. 2 million shares at average price of $ 29. 19 through structured repurchase agreements during fiscal 2009 and fiscal 2010.
 during fiscal 2009  repurchased approximately 15. 2 million shares at average price per share of $ 27. 89 through structured repurchase agreements during fiscal 2008 and fiscal 2009.
fiscal 2011 , 2010 2009  prepayments classified as treasury stock on consolidated balance sheets at payment date only shares physically delivered by december 2 , 2011 , december 3, 2010 november 27 , 2009 excluded from computation earnings per share.
 as of december 2 , 2011 december 3 , 2010  no prepayments remained under agreements.
 as of november 27 , 2009  approximately $ 59. 9 million prepayments remained under agreements.
 subsequent to december 2 , 2011  of $ 1. 6 billion stock repurchase program entered structured stock repurchase agreement with large financial institution provided prepayment of $ 80. 0 million.
 amount classified as treasury stock on consolidated balance sheets.
 upon completion of $ 80. 0 million stock table of contents adobe systems incorporated notes to consolidated financial statements continued jarcamo typewritten text

| 2011           | 2010           | 2009
--------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
beginning balance                                                                       | $ 7632         | $ 10640        | $ -431 ( 431 )
foreign currency translation adjustments                                                | 5156           | -4144 ( 4144 ) | 17343
income tax effect relating to translation adjustments forundistributed foreign earnings | -2208 ( 2208 ) | 1136           | -6272 ( 6272 )
ending balance                                                                          | $ 10580        | $ 7632         | $ 10640


biomet holdings , inc.
 2015 form 10-k annual report notes to consolidated financial statements unaudited pro forma results prepared for comparative purposes include adjustments inventory step-up amortization of acquired intangible assets interest expense on debt to finance merger.
 nonrecurring pro forma adjustments attributable to biomet merger include : 2022 $ 90. 4 million merger compensation expense for unvested lvb stock options lvb stock-based awards removed from net earnings for year ended december 31 , 2015 recognized as expense in year ended december 31 , 2014.
 2022 $ 73. 0 million retention plan expense removed from net earnings for year ended december 31 , 2015 recognized as expense in year ended december 31 , 2014.
 2022 transaction costs of $ 17. 7 million removed from net earnings for year ended december 31 , 2015 recognized as expense in year ended december 31  other acquisitions made business acquisitions during years 2014 and 2013.
 october 2014 acquired etex holdings , inc.
 ( 201cetex 201d ).
 etex acquisition enhanced biologics portfolio through addition of etex 2019s bone void filler products.
 may 2013  acquired business assets of knee creations , llc ( 201cknee creations 201d ).
 acquisition enhanced product portfolio of joint preservation solutions.
 june 2013 acquired normed medizin-technik gmbh ( 201cnormed 201d ).
 normed acquisition strengthened extremities and trauma product portfolios brought new product development capabilities in foot ankle hand wrist markets.
results of operations of acquired companies included in our consolidated results operations subsequent to transaction dates assets and liabilities of recorded at estimated fair values in our consolidated statement of financial position as of transaction dates excess purchase price recorded as goodwill.
 pro forma financial information and other information required by gaap not included for these acquisitions not material impact upon our financial position or results of operations.
 5.
 share-based compensation share-based payments primarily consist of stock options and restricted stock units ( 201crsus 201d ).
 share-based compensation expense was as follows ( in millions ) :.
 stock options two equity compensation plans in effect at december 31, 2015 : 2009 stock incentive plan ( 201c2009 plan 201d ) and stock plan for non-employee directors.
 2009 plan succeeded 2006 stock incentive plan ( 201c2006 plan 201d ) and teamshare stock option plan ( 201cteamshare plan 201d ).
 no further awards granted under 2006 plan or teamshare plan since may 2009 shares remaining available for grant under those plans merged into 2009 plan.
 vested stock options previously granted under 2006 plan  teamshare plan prior plan 2001 stock incentive plan  remained outstanding as of december 31 , 2015.
 reserved maximum number of shares of common stock available for award under terms each these plans.
 registered 57. 9 million shares of common stock under these plans.
 2009 plan provides for grant of nonqualified stock options and incentive stock options  long-term performance awards in form of performance shares or units  restricted stock  rsus stock appreciation rights.
 compensation and management development committee of board of directors determines grant date for annual grants under equity compensation plans.
date for annual grants under 2009 plan to executive officers expected occur in first quarter of each year following earnings announcements for previous quarter and full year.
 in 2015  compensation and management development committee set closing date as grant date for awards to executive officers.
 stock plan for non-employee directors provides for awards of stock options  restricted stock and rsus.
 practice to issue shares of common stock upon exercise of stock options from previously unissued shares except in limited circumstances where issued from treasury stock.
 total number of awards granted in given year and/or over life of plan under each equity compensation plans is limited.
 at december 31 , 2015 aggregate of 5. 6 million shares available for future grants and awards under plans.
 stock options granted to under plans vest over four years have maximum contractual life of 10 years.
 established under equity compensation plans vesting may accelerate upon retirement after first anniversary date of award if criteria met.
 recognize expense related to stock options on straight-line basis over requisite service period less awards expected be forfeited using estimated forfeiture rates.
 due to accelerated retirement provisions requisite service period of stock options range from one to four years.
 stock options granted with exercise price equal to market price of common stock on date of grant except in limited circumstances where local law may dictate otherwise.

for the years ended december 31, | 2015           | 2014           | 2013
-------------------------------- | -------------- | -------------- | --------------
total expense pre-tax            | $ 46.4         | $ 49.4         | $ 48.5
tax benefit related to awards    | -14.5 ( 14.5 ) | -15.5 ( 15.5 ) | -15.6 ( 15.6 )
total expense net of tax         | $ 31.9         | $ 33.9         | $ 32.9


minimum operating lease payments for leases with remaining terms greater than one year for each years five years ending december 31 , 2015 and are as follows ( in millions ) :.
 company has operating lease commitments to office equipment and computer hardware with annual lease payments of approximately $ 16. 3 million per year renew on short-term basis.
 rent expense incurred under all operating leases during years ended december 31, 2010 , 2009 2008 was $ 116. 1 million , $ 100. 2 million and $ 117. 0 million  respectively.
 in discontinued operations in consolidated statements of earnings was rent expense of $ 2. 0 million , $ 1. 8 million and $ 17. 0 million for years ended december 31 , 2010  2009 2008 .
 data processing and maintenance services agreements.
 company has agreements with various vendors expire between 2011 and 2017  for portions computer data processing operations and related functions.
 company 2019s estimated aggregate contractual obligation remaining under these agreements was approximately $ 554. 3 million as of december 31 , 2010.
 amount could be more or less depending on inflation rate foreign exchange rates introduction of new technologies or changes in company data processing needs.
 employee benefit plans stock purchase plan employees participate in employee stock purchase plan.
 eligible employees may voluntarily purchase at market prices shares of fis 2019 common stock through payroll deductions.
 employees may contribute between 3% ( 3 ) and 15% ( 15 % ) of base salary and commissions.
 shares purchased are allocated to employees based upon contributions.
 company contributes varying matching amounts as specified in espp.
 company recorded expense of $ 14. 3 million , $ 12. 4 million and $ 14.3 million  respectively years ended december 31 , 2010, 2009 2008  participation fis employees in espp.
 included discontinued operations consolidated statements of earnings expense of $ 0. 1 million and $ 3. 0 million years ended december 31 , 2009 2008 .
 401 ( k ) profit sharing plan company 2019s employees covered by qualified 401 ( k ) plan.
 eligible employees contribute up to 40% ( 40 % ) of pretax annual compensation  amount allowed internal revenue code.
 company matches 50% ( 50 % ) of each dollar employee contribution up to 6% ( 6 % ) employee 2019s total eligible compensation.
 company recorded expense of $ 23. 1 million , $ 16. 6 million $ 18. 5 million  respectively years ended december 31 , 2010, 2009 2008  participation of fis employees in 401 ( k ) plan.
 included discontinued operations consolidated statements of earnings expense of $ 0. 1 million and $ 3. 9 million years ended december 31 , 2009 2008 .
 fidelity national information services , inc.
 subsidiaries notes consolidated financial statements 2014 ( continued ) %%transmsg*** transmitting job : g26369 pcn : 083000000 ***%%pcmsg|83 |00006|yes|no|03/28/2011 17:32|0|0|page valid , no graphics -- color : n|

2011       | $ 65.1
---------- | -------
2012       | 47.6
2013       | 35.7
2014       | 27.8
2015       | 24.3
thereafter | 78.1
total      | $ 278.6


table of contents stock performance graph * $ 100 invested 11/17/11 our stock or 10/31/11 relevant index including reinvestment dividends.
 fiscal year ending december 31 , 2015.
 ( 1 ) delphi automotive plc ( 2 ) s&p 500 2013 standard & poor 2019s 500 total return index ( 3 ) automotive supplier peer group 2013 russell 3000 auto parts index  including american axle & manufacturing , borgwarner inc. cooper tire & rubber company  dana holding corp. delphi automotive plc dorman products inc. federal-mogul corp. ford motor co. fuel systems solutions inc. general motors co. gentex corp. gentherm inc. genuine parts co. johnson controls inc. lear corp. lkq corp. meritor inc. standard motor products inc. stoneridge inc. superior industries international  tenneco inc. tesla motors inc. goodyear tire & rubber co. tower international inc. visteon corp. wabco holdings inc.
 company index november 17 , december 31 december 31.
 dividends company declared paid cash dividends $ 0. 25 per ordinary share each quarter of 2014 and 2015.
 january 2016  board of directors increased annual dividend rate to $ 1. 16 per ordinary share  declared regular quarterly cash dividend $ 0. 29 per ordinary share  payable february 29 , 2016 shareholders record close of business february 17 , 2016.

company index                        | november 17 2011 | december 31 2011 | december 31 2012 | december 31 2013 | december 31 2014 | december 31 2015
------------------------------------ | ---------------- | ---------------- | ---------------- | ---------------- | ---------------- | ----------------
delphi automotive plc ( 1 )          | $ 100.00         | $ 100.98         | $ 179.33         | $ 285.81         | $ 350.82         | $ 418.67
s&p 500 ( 2 )                        | 100.00           | 100.80           | 116.93           | 154.80           | 175.99           | 178.43
automotive supplier peer group ( 3 ) | 100.00           | 89.62            | 109.96           | 166.26           | 176.25           | 171.91


mw mamonal plant.
 approximately $ 77 million of purchase price allocated to goodwill amortized over 32 years.
 termocandelaria power plant included in discontinued operations in accompanying consolidated financial statements.
 table below presents supplemental unaudited pro forma operating results as if all acquisitions occurred at beginning of periods shown ( in millions , except per share amounts ).
 no pro forma operating results provided for 2001 , because impact not material.
 pro forma amounts include adjustments primarily for depreciation and amortization based on allocated purchase price and additional interest expense : year ended december 31 , 2000.
 pro forma results based upon assumptions and estimates company believes reasonable.
 pro forma results not to be indicative of results obtained had acquisitions occurred at beginning of periods shown nor intended to be projection of future results.
.
 discontinued operations effective january 1 , 2001 , company adopted sfas no.
 144.
 statement addresses financial accounting and reporting for impairment or disposal of long-lived assets.
 sfas no.
 144 requires component of entity either disposed of or classified as held for sale to be reported as discontinued operations if certain conditions met.
 during year  company decided to exit certain businesses.
 these businesses included power direct , geoutilities , termocandelaria , ib valley several telecommunications businesses in brazil.
 businesses either disposed of or abandoned during year or classified as held for sale at december 31 , 2001.
 for those businesses disposed of or abandoned  company determined significant adverse changes in legal factors and/or business climate , unfavorable market conditions and low tariffs , negatively affected value of these assets.
 company has certain businesses held for sale , including termocandelaria.
company approved committed to plan to sell these assets  available for immediate sale  plan established to locate buyer at reasonable fair market value price.
 company believes it will sell assets within one year unlikely significant changes to plan to sell.
 at december 31 , 2001  assets and liabilities associated with discontinued operations segregated on consolidated balance sheets.
 majority of long-lived assets related to discontinued operations are for termocandelaria competitive supply business in colombia.
 revenues associated with discontinued operations were $ 287 million , $ 74 million and $ 7 million for years ended december 31 , 2001 , 2000 and 1999 , respectively.
 pretax losses with discontinued operations were $ 58 million , $ 31 million $ 4 million for each of years ended december 31 , 2001 , 2000 1999 ,.
 loss on disposal and impairment write-downs for businesses held for sale , net of tax associated with discontinued operations was $ 145 million for year ended december 31 , 2001.

| year ended december 31 2000
--------------------------------- | ---------------------------
revenue                           | $ 8137
income before extraordinary items | 833
net income                        | 822
basic earnings per share          | $ 1.67
diluted earnings per share        | $ 1.61


federal realty investment trust schedule iii summary real estate accumulated depreciation three years ended december 31 2005 reconciliation accumulated depreciation amortization.

balance december 31 2002                                             | $ 450697000
-------------------------------------------------------------------- | ----------------------
additions during period 2014depreciation and amortization expense    | 68125000
deductions during period 2014disposition and retirements of property | -4645000 ( 4645000 )
balance december 31 2003                                             | 514177000
additions during period 2014depreciation and amortization expense    | 82551000
deductions during period 2014disposition and retirements of property | -1390000 ( 1390000 )
balance december 31 2004                                             | 595338000
additions during period 2014depreciation and amortization expense    | 83656000
deductions during period 2014disposition and retirements of property | -15244000 ( 15244000 )
balance december 31 2005                                             | $ 663750000