executive deferred compensation plan for company 2019s executives members of board of directors company adopted illumina , inc.
 deferred compensation plan ( plan ) effective january 1 , 2008.
 eligible participants can contribute up to 80% ( 80 % ) of base salary and 100% ( 100 % ) of all other forms of compensation into plan including bonus , commission director fees.
 company agreed to credit participants 2019 contributions with earnings reflect performance of certain independent investment funds.
 discretionary basis company may make employer contributions to participant accounts in amount determined by company.
 vesting schedules of employer contributions at sole discretion of compensation committee.
 all employer contributions become 100% ( 100 % ) vested upon participant 2019s disability , death or retirement or change in control of company.
 benefits under plan are unsecured.
 participants eligible to receive payment of vested benefit at end of elected deferral period or after termination of employment company for any reason or later date to comply with restrictions of section 409a.
 as of december 28 , 2008  no employer contributions made to plan.
 in january 2008  company established a rabbi trust for benefit of directors and executives under plan.
 in accordance with fasb interpretation ( fin ) no.
 46 , consolidation of variable interest entities  interpretation of arb no.
 51  eitf 97-14  accounting for deferred compensation arrangements where amounts earned held in rabbi trust and invested company included assets of rabbi trust in consolidated balance sheet since trust 2019s inception.
 as of december 28 , 2008 assets of trust and liabilities company were $ 1. 3 million.
 assets and liabilities classified as other assets and accrued liabilities on company 2019s balance sheet as of december 28 , 2008.
changes in values of assets held by rabbi trust accrue to company.
 14.
 segment information  geographic data significant customers during first quarter of 2008  company reorganized operating structure into newly created life sciences business unit includes all products and services related to research market beadarray  beadxpress sequencing product lines.
 company created diagnostics business unit to focus on emerging opportunity in molecular diagnostics.
 for year ended december 28 , 2008  company had limited activity related to diagnostics business unit operating results reported aggregate basis to chief operating decision maker company chief executive officer.
 in accordance with sfas no.
 131  disclosures about segments enterprise related information company operated in one reportable segment for year ended december 28 , 2008.
 company had revenue in following regions for years ended december 28 , 2008 , december 30 , 2007 december 31 , 2006 ( in thousands ) : year ended december 28 , year ended december 30 , year ended december 31.
 net revenues attributable to geographic areas based on region of destination.
.
 notes to consolidated financial statements 2014 ( )

| year ended december 28 2008 | year ended december 30 2007 | year ended december 31 2006
------------------------ | --------------------------- | --------------------------- | ---------------------------
united states            | $ 280064                    | $ 207692                    | $ 103043
united kingdom           | 67973                       | 34196                       | 22840
other european countries | 127397                      | 75360                       | 32600
asia-pacific             | 72740                       | 35155                       | 15070
other markets            | 25051                       | 14396                       | 11033
total                    | $ 573225                    | $ 366799                    | $ 184586


goldman sachs group , inc.
 subsidiaries item 9.
 changes in disagreements with accountants on accounting and financial disclosure no changes in or disagreements with accountants on accounting financial disclosure during last two years.
 item 9a.
 controls and procedures as of end of period covered by this report  evaluation carried out by goldman sachs 2019 management  participation of chief executive officer and chief financial officer  of effectiveness of disclosure controls and procedures ( defined in rule 13a-15 ( e ) under exchange act ).
 based evaluation chief executive officer chief financial officer concluded these disclosure controls procedures were effective as of end of period covered report.
 no change in internal control over financial reporting ( defined in rule 13a-15 ( f ) under exchange act ) occurred during fourth quarter of year ended december 31, 2018 materially affected or likely to affect internal control over financial reporting.
 management 2019s report on internal control over financial reporting report of independent registered public accounting firm set in part ii , item 8 of form 10-k.
 item 9b.
 other information not applicable.
 part iii item 10.
 directors , executive officers corporate governance information relating to executive officers included on page 20 of form 10-k.
 information relating to directors  including audit committee audit committee financial experts procedures by shareholders can recommend director nominees  executive officers in definitive proxy statement for 2019 annual meeting of shareholders filed within 120 days of end of 2018 ( 2019 proxy statement ) incorporated in form 10-k by reference.
 information relating to code of business conduct and ethics  applies to senior financial officers  included in 201cbusiness 2014 available information 201d in part i , item 1 of form 10-k.
 item 11.
executive compensation information executive officer and director compensation compensation committee of board in 2019 proxy statement incorporated in form 10-k by reference.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters information relating to security ownership of certain beneficial owners of common stock information security ownership of management in 2019 proxy statement incorporated in form 10-k by reference.
 table below presents information as of december 31, 2018 regarding securities to be issued to outstanding restricted stock units ( rsus ) securities remaining available for issuance under equity compensation plans in effect during 2018.
 plan category securities to be issued exercise of outstanding options and rights ( a ) weighted average exercise price of outstanding options b ) securities available for future issuance under equity compensation plans ( c ) equity compensation plans approved by security holders 17176475 n/a 68211649 equity compensation plans not approved by security holders 2013 2013.
 in table above : 2030 securities to be issued upon exercise of outstanding options and rights includes 17176475 shares issued to outstanding rsus.
 awards subject to vesting other conditions extent in respective award agreements  underlying shares delivered net of required tax withholding.
 as of december 31 , 2018  no outstanding options.
 2030 shares underlying rsus deliverable without payment of consideration , these awards not taken into account in calculating weighted average exercise price.
 196 goldman sachs 2018 form 10-k

plan category                                             | securities to be issued upon exercise of outstanding options and rights ( a ) | weighted average exercise price of outstanding options ( b ) | securities available for future issuance under equity compensation plans ( c )
--------------------------------------------------------- | ----------------------------------------------------------------------------- | ------------------------------------------------------------ | ------------------------------------------------------------------------------
equity compensation plans approved by security holders    | 17176475                                                                      | n/a                                                          | 68211649
equity compensation plans not approved by securityholders | 2013                                                                          | 2013                                                         | 2013
total                                                     | 17176475                                                                      |                                                              | 68211649


item 7.
 management 2019s discussion analysis of financial condition results of operations results operations 2013 highmount 2013 ( continued ) highmount 2019s revenues , profitability future growth depend on natural gas ngl prices highmount 2019s ability to increase natural gas ngl production.
 in recent years significant price volatility in natural gas ngl prices due to variety of factors highmount cannot control or predict.
 these factors  include weather conditions  political economic events  competition from other energy sources  impact supply demand for natural gas  determines pricing.
 in recent months natural gas prices decreased significantly due to increased onshore natural gas production plentiful levels working gas in storage reduced commercial demand.
 increase in onshore natural gas production due to increased production from 201cunconventional 201d sources of natural gas shale gas  coalbed methane  tight sandstones methane hydrates  made possible by modern technology in creating artificial fractures around well bores advances in horizontal drilling technology.
 other key factors contributing to softness of natural gas prices likely included lower level industrial demand for natural gas  ongoing economic downturn low crude oil prices.
 due to industry conditions  in february of 2009 highmount elected to terminate contracts for five drilling rigs at permian basin property in sonora , texas area.
 estimated fee payable to rig contractor for early termination right will be approximately $ 23 million.
 developments highmount will reduce 2009 production volumes through decreased drilling activity.
 price highmount realizes for gas production affected by highmount 2019s hedging activities locational differences in market prices.
 highmount 2019s decision to increase natural gas production dependent upon highmount 2019s ability to realize attractive returns on capital investment program.
 returns affected by commodity prices  capital operating costs.
highmount 2019s operating income  represents revenues less operating expenses  affected by revenue factors function of varying production expenses  production ad valorem taxes  depreciation , depletion amortization ( 201cdd&a 201d ) expenses.
 highmount 2019s production expenses represent all costs to operate maintain wells and related equipment and facilities.
 principal components of highmount production expenses are  direct and indirect costs of labor and benefits , repairs and maintenance  materials  supplies fuel.
 during 2008 highmount 2019s labor costs increased due to higher salary levels upward pressure on salaries wages increased competition for skilled workers.
 in response to market conditions in 2008 highmount implemented retention programs  including increases in compensation.
 production expenses during 2008 affected by increases in cost of fuel  materials supplies.
 higher cost environment continued during all 2008.
 during fourth quarter of 2008 price of natural gas declined while operating expenses remained high.
 environment of low commodity prices and high operating expenses continued until december of 2008 when highmount began to see evidence of decreasing operating expenses and drilling costs.
 highmount 2019s production and ad valorem taxes increase when prices of natural gas and ngls increase also affected by changes in production  appreciated property values.
 highmount calculates depletion using units-of-production method depletes capitalized costs and future development costs associated with evaluated properties based on ratio of production volumes for current period to total remaining reserve volumes for evaluated properties.
 highmount 2019s depletion expense affected by capital spending program projected future development costs  reserve changes from drilling programs  well performance  revisions due to changing commodity prices.
 presented below are production and sales statistics related to highmount 2019s operations:.

year ended december 31                           | 2008   | 2007 ( a )
------------------------------------------------ | ------ | ----------
gas production ( bcf )                           | 78.9   | 34.0
gas sales ( bcf )                                | 72.5   | 31.4
oil production/sales ( mbbls )                   | 351.3  | 114.0
ngl production/sales ( mbbls )                   | 3507.4 | 1512.9
equivalent production ( bcfe )                   | 102.0  | 43.8
equivalent sales ( bcfe )                        | 95.7   | 41.2
average realized prices without hedging results: |        |
gas ( per mcf )                                  | $ 8.25 | $ 5.95
ngl ( per bbl )                                  | 51.26  | 51.02
oil ( per bbl )                                  | 95.26  | 83.37
equivalent ( per mcfe )                          | 8.48   | 6.65


entergy arkansas , inc.
 management's financial discussion analysis gross operating revenues fuel and purchased power expenses operating revenues increased due to increase of $ 114 million in gross wholesale revenue due to increase in average price of energy available for resale sales increase in sales to affiliated customers ; increase of $ 106. 1 million in production cost allocation rider revenues effective in july 2007 result of system agreement proceedings.
 agreement entergy also has corresponding increase in deferred fuel expense for payments to other entergy system companies no effect on net income.
 entergy makes payments over seven-month period collections from customers occur over twelve-month period.
 production cost allocation rider discussed in note 2 to financial statements system agreement proceedings referenced below under "federal regulation" ; increase of $ 58. 9 million in fuel cost recovery revenues due to changes in energy cost recovery rider effective april 2008 and september 2008  partially offset by decreased usage.
 energy cost recovery rider filings discussed in note 2 financial statements.
 increase partially offset by decrease of $ 14. 6 million related to volume/weather ,.
 fuel and purchased power expenses increased due to increase of $ 106. 1 million in deferred system agreement payments  increase in average market price of purchased power.
 2007 compared to 2006 net revenue consists of operating revenues net of : fuel , fuel-related expenses , gas purchased for resale , 2 ) purchased power expenses  3 ) other regulatory credits.
 analysis of change in net revenue comparing 2007 to 2006.
 amount ( in millions ).
net wholesale revenue variance due to lower wholesale revenues third quarter 2006 due to october 2006 ferc order requiring entergy arkansas to refund to coal plant co-owner from contract dispute  to re-pricing revisions  retroactive to 2003  of $ 5. 9 million of purchased power agreements among entergy system companies as directed by ferc.
 transmission revenue variance due to higher rates addition of new transmission customers late 2006.
 deferred fuel cost revisions variance due to 2006 energy cost recovery true-up  first quarter 2007 increased net revenue by $ 6. 6 million.
 gross operating revenue fuel and purchased power expenses gross operating revenues decreased due to decrease of $ 173. 1 million in fuel cost recovery revenues due to decrease in energy cost recovery rider effective april 2007.
 energy cost recovery rider discussed in note 2 to financial statements.
 decrease partially offset by production cost allocation rider revenues of $ 124. 1 million effective in july 2007 result of system agreement proceedings.

| amount ( in millions )
----------------------------- | ----------------------
2006 net revenue              | $ 1074.5
net wholesale revenue         | 13.2
transmission revenue          | 11.8
deferred fuel costs revisions | 8.6
other                         | 2.5
2007 net revenue              | $ 1110.6


relative percentages of operating companies income ( loss ) attributable to each reportable segment all other category as follows:.
 for items affecting comparability of relative percentages operating companies income ( loss ) each reportable segment see note 16.
 narrative description of business portions information called for by this item included in operating results by business segment in item 7.
 management 2019s discussion analysis of financial condition results of operations of annual report on form 10-k ( 201citem 7 201d ).
 tobacco space altria group , inc. 2019s tobacco operating companies include pm usa  usstc other subsidiaries of ust , middleton  nu mark nat sherman.
 altria group distribution company provides sales  distribution consumer engagement services to altria group  inc. tobacco operating companies.
 products of altria group. tobacco subsidiaries include smokeable tobacco products cigarettes manufactured sold by pm usa nat sherman  machine- made large cigars pipe tobacco sold by middleton premium cigars sold by nat sherman ; smokeless tobacco products sold by usstc ; innovative tobacco products including e-vapor products sold by nu mark.
 cigarettes : pm usa largest cigarette company in united states with total cigarette shipment volume of approximately 122. 9 billion units in 2016 decrease of 2. 5% ( 2. 5 % ) from 2015.
 marlboro  principal cigarette brand of pm usa largest-selling cigarette brand in united states for over 40 years.
 nat sherman sells all super-premium cigarettes in united states.
 cigars : middleton engaged in manufacture sale of machine-made large cigars pipe tobacco to customers all located in united states.
 middleton sources portion of cigars from importer through third-party contract manufacturing arrangement.
shipment volume for cigars was approximately 1. 4 billion units in 2016 increase of 5. 9% ( 5. 9 % ) from 2015.
 black & mild principal cigar brand of middleton.
 nat sherman sources premium cigars from importers through third-party contract manufacturing arrangements sells all cigars in united states.
 smokeless tobacco products : usstc leading producer and marketer of moist smokeless tobacco ( 201d ) products.
 smokeless products segment includes premium brands , copenhagen and skoal  value brands , red seal and husky.
 all smokeless tobacco products manufactured and sold to customers in united states.
 total smokeless products shipment volume was 853. 5 million units in 2016 increase of 4. 9% ( 4. 9 % ) from 2015.
 innovative tobacco products : nu mark participates in e-vapor category developed and commercialized other innovative tobacco products.
 nu mark sources production e-vapor products through overseas contract manufacturing arrangements.
 in 2013 nu mark introduced markten e-vapor products.
 in april 2014 nu mark acquired e-vapor business of green smoke , inc.
 affiliates began selling e-vapor products in 2009.
 for further discussion of acquisition of green smoke see note 3.
 acquisition of green smoke to consolidated financial statements in item 8 ( 201cnote 3 201d ).
 in december 2013 altria group , inc. 2019s subsidiaries entered agreements with philip morris international inc.
 altria group. subsidiaries provide exclusive license to pmi to sell nu mark 2019s e-vapor products outside united states pmi 2019s subsidiaries provide exclusive license to altria group  inc.2019s subsidiaries sell two pmi 2019s heated tobacco product platforms in united states.
 in july 2015  altria group , inc.
 announced expansion strategic framework with pmi to include joint research , development technology-sharing agreement.
 under agreement altria group . 2019s subsidiaries pmi collaborate to develop e-vapor products for commercialization in united states by altria group. 2019s subsidiaries markets outside united states by pmi.
 agreement provides for exclusive technology cross licenses  technical information sharing cooperation on scientific assessment  regulatory engagement approval related to e-vapor products.
 fourth quarter of 2016  pmi submitted modified risk tobacco product ( 201cmrtp 201d ) application for electronically heated tobacco product with united states food and drug administration 2019s ( 201cfda 201d ) center for tobacco products plans to file corresponding pre-market tobacco product application during first quarter of 2017.
 fda must determine accept applications for review.
 upon regulatory authorization by fda altria group  inc. 2019s subsidiaries have exclusive license to sell this heated tobacco product in united states.
 distribution  competition raw materials altria group . 2019s tobacco subsidiaries sell tobacco products principally to wholesalers ( including distributors ) large retail organizations  chain stores  armed services.
 market for tobacco products is highly competitive characterized by brand recognition loyalty product quality , taste  price  product innovation  marketing  packaging distribution constituting significant methods of competition.
 promotional activities include  certain instances

| 2016               | 2015               | 2014
------------------ | ------------------ | ------------------ | ------------------
smokeable products | 86.2% ( 86.2 % )   | 87.4% ( 87.4 % )   | 87.2% ( 87.2 % )
smokeless products | 13.1               | 12.8               | 13.4
wine               | 1.8                | 1.8                | 1.7
all other          | -1.1 ( 1.1 )       | -2.0 ( 2.0 )       | -2.3 ( 2.3 )
total              | 100.0% ( 100.0 % ) | 100.0% ( 100.0 % ) | 100.0% ( 100.0 % )


pnc financial services group , inc.
 2013 form 10-k 29 part ii item 5 2013 market for registrant 2019s common equity , related stockholder matters issuer purchases of equity securities ( ) 1 ) our common stock listed on new york stock exchange traded under symbol 201cpnc. 201d at close of business on february 15 , 2019  53986 common shareholders of record.
 holders pnc common stock entitled to receive dividends when declared by board of directors out of funds legally available for this purpose.
 board of directors may not pay or set apart dividends on common stock until dividends for all past dividend periods on series outstanding preferred stock certain outstanding capital securities issued by parent company paid or declared and set apart for payment.
 board of directors intends to continue policy of paying quarterly cash dividends.
 amount future dividends depend on economic market conditions  financial condition operating results  other factors  including contractual restrictions applicable government regulations policies ( relating ability of bank non-bank subsidiaries to pay dividends to parent company regulatory capital limitations ).
 amount of dividend subject to results of supervisory assessment of capital adequacy capital planning processes by federal reserve primary bank regulators part of comprehensive capital analysis and review ( ccar ) process described in supervision and regulation section in item 1 of report.
 federal reserve power to prohibit us from paying dividends without approval.
further information concerning dividend restrictions factors limit ability to pay dividends restrictions on loans  dividends advances from bank subsidiaries to parent company see supervision and regulation section in item 1 , item 1a risk factors  liquidity and capital management portion of risk management section in item 7  note 10 borrowed funds , note 15 equity note 18 regulatory matters in notes to consolidated financial statements in item 8 report include by reference.
 include information regarding compensation plans under pnc equity securities authorized for issuance as of december 31, 2018 in table ( with introductory paragraph notes ) in item 12 of report.
 stock transfer agent and registrar is : computershare trust company , n. a.
 250 royall street canton , ma 02021 800-982-7652 www. computershare. com/pnc registered shareholders may contact computershare regarding dividends shareholder services.
 include reference information under common stock performance graph caption at end of item 5.
 a ) ( 2 ) none.
 ( b ) not applicable.
 details of repurchases of pnc common stock during fourth quarter of 2018 included in following table : in thousands  except per share data 2018 period total shares purchased ( ) average price paid per share total shares purchased as part of publicly announced programs b ) maximum number of shares yet be purchased under programs.
 includes pnc common stock purchased in connection with employee benefit plans related to forfeitures of unvested restricted stock awards shares used to cover employee payroll tax withholding requirements.
 note 11 employee benefit plans note 12 stock based compensation plans in notes to consolidated financial statements in item 8 report include additional information regarding employee benefit and equity compensation plans use pnc common stock.
( b ) march 11 , 2015  announced board of directors approved stock repurchase program authorization 100 million shares of pnc common stock  effective april 1 , 2015.
 repurchases made in open market or privately negotiated transactions timing exact amount of common stock repurchases depend on factors including market general economic conditions  regulatory capital considerations  alternative uses of capital  potential impact on credit ratings  contractual and regulatory limitations  including results of supervisory assessment of capital adequacy and capital planning processes by federal reserve part of ccar process.
 june 2018  announced share repurchase programs up to $ 2. 0 billion for four quarter period beginning third quarter of 2018  including repurchases of up to $ 300 million related to stock issuances under employee benefit plans  in accordance with pnc's 2018 capital plan.
 november 2018  announced increase to previously announced programs up to $ 900 million in additional common share repurchases.
 aggregate repurchase price of shares repurchased fourth quarter of 2018 was $. 8 billion.
 see liquidity and capital management portion risk management section in item 7 of report for more information on authorized share repurchase programs for period july 1 , 2018 through june 30 , 2019.
 http://www. computershare. com/pnc

2018 period        | total shares purchased ( a ) | average price paid per share | total shares purchased as part of publicly announced programs ( b ) | maximum number of shares that may yet be purchased under the programs ( b )
------------------ | ---------------------------- | ---------------------------- | ------------------------------------------------------------------- | ---------------------------------------------------------------------------
october 1 2013 31  | 1204                         | $ 128.43                     | 1189                                                                | 25663
november 1 2013 30 | 1491                         | $ 133.79                     | 1491                                                                | 24172
december 1 2013 31 | 3458                         | $ 119.43                     | 3458                                                                | 20714
total              | 6153                         | $ 124.67                     |                                                                     |


gain on business divestitures and impairments net strive to have number one or number two market position in each markets we serve or clear path on achieve leading market position over time.
 where cannot establish leading market position or operations not generating acceptable returns may decide to divest assets reallocate resources to other markets.
 asset or business divestitures could result in gains  losses asset impairment charges material to our results of operations in given period.
 during 2018  recorded net gain on business divestitures  net of asset impairments of $ 44. 9 million.
 during 2017  recorded net gain on business divestitures net of asset impairments of $ 27. 1 million.
 also recorded gain on business divestitures of $ 6. 8 million due to transfer of ownership of landfill gas collection and control system and remaining post-closure and environmental liabilities associated with one divested landfills.
 during 2016  recorded charge to earnings of $ 4. 6 million primarily related to environmental costs associated with one divested landfills.
 during 2016  recorded net gain related to business divestiture of $ 4. 7 million.
 restructuring charges in january 2018 eliminated certain positions following consolidation of select back-office functions including integration of national accounts support functions into existing corporate support functions.
 changes include reduction in administrative staffing closure of certain office locations.
 during 2018  incurred restructuring charges of $ 26. 4 million primarily consisted of severance and other employee termination benefits closure of offices with non-cancelable lease agreements redesign of back-office functions and upgrades to software systems.
 paid $ 24. 7 million during 2018 related to these restructuring efforts.
january 2016  realigned field support functions combining three regions into two field groups  consolidating areas streamlining select operational support roles at phoenix headquarters.
 second quarter of 2016  began redesign of back-office functions consolidation of over 100 customer service locations into three customer resource centers.
 redesign back-office functions and upgrades to software systems continued into 2018.
 years ended december 31 , 2017 and 2016  incurred $ 17. 6 million and $ 40. 7 million of restructuring charges primarily consisted of severance other employee termination benefits , transition costs , relocation benefits  closure of offices with lease agreements with non-cancelable terms.
 savings from restructuring efforts reinvested in customer-focused programs and initiatives.
 interest expense following table provides components of interest expense  including accretion of debt discounts and accretion of discounts primarily associated with environmental and risk insurance liabilities assumed in acquisitions ( in millions of dollars ) :.
 total interest expense for 2018 increased compared to 2017 due to increase in debt outstanding period higher interest rates on floating rate debt.
 total interest expense for 2017 decreased

| 2018         | 2017         | 2016
------------------------------------------------------ | ------------ | ------------ | ------------
interest expense on debt and capital lease obligations | $ 349.4      | $ 324.8      | $ 324.1
non-cash interest                                      | 41.2         | 43.6         | 53.4
less : capitalized interest                            | -6.8 ( 6.8 ) | -6.5 ( 6.5 ) | -6.2 ( 6.2 )
total interest expense                                 | $ 383.8      | $ 361.9      | $ 371.3


consume significant energy , we may future incur additional increased capital , operating other expenditures from changes due to new increased climate-related environmental regulations.
 we could incur substantial liabilities  including fines sanctions  enforcement actions  natural resource damages claims  cleanup and closure costs  third-party claims for property damage personal injury under environmental common laws.
 foreign corrupt practices act of 1977 and local anti-bribery laws , including those in brazil , china mexico  india united kingdom ( where maintain operations directly or through joint venture )  prohibit companies intermediaries from making improper payments to government officials for influencing official decisions.
 internal control policies and procedures  or vendors may not adequately protect us from reckless or criminal acts committed or alleged to committed by our employees  agents or vendors.
 such violations could lead to civil or criminal monetary non-monetary penalties/or could damage our reputation.
 subject to labor and employment laws regulations could increase operating costs reduce operational flexibility.
 changing privacy laws in united states ( including california consumer privacy act  effective in january 2020 ) europe ( general data protection regulation effective in 2018 ) elsewhere have created new individual privacy rights imposed increased obligations on companies handling personal data increased potential exposure to fines and penalties.
 item 1b.
 unresolved staff comments no unresolved sec staff comments.
 item 2.
 properties we operate locations in north america  including majority of u. s.
 states  south america  europe  asia australia.
 lease principal offices in atlanta , ga.
 believe existing production capacity is adequate to serve existing demand for products consider plants and equipment to in good condition.
 corporate and operating facilities as of september 30 , 2019 are summarized below:.
tables show annual production capacity by mill at september 30 , 2019 in thousands of tons  except for north charleston , sc mill reflects capacity after machine closure expected in fiscal 2020.
 mill system production levels and operating rates may vary year to year due to changes in market other factors  including impact of hurricanes other weather-related events.
 simple average mill system operating rates for last three years averaged 94% ( 94 % ).
 we own all mills.

segment                                    | number of facilities owned | number of facilities leased | number of facilities total
------------------------------------------ | -------------------------- | --------------------------- | --------------------------
corrugated packaging                       | 112                        | 61                          | 173
consumer packaging                         | 84                         | 55                          | 139
corporate and significant regional offices | 2014                       | 10                          | 10
total                                      | 196                        | 126                         | 322


american tower corporation subsidiaries notes to consolidated financial statements 2014 continued ) atc mexico stock option plan 2014as of december 31 , 2006 company maintained stock option plan for atc mexico subsidiary ( atc mexico plan ) terminated february 2007.
 atc mexico plan provided for issuance of options to officers  employees directors consultants of atc mexico no option activity no outstanding options for years ended december 31 , 2006 and 2005.
 atc south america stock option plan 2014as december 31 , 2006 company maintained stock option plan for atc south america subsidiary ( atc south america plan ) terminated february 2007.
 atc south america plan provided for issuance of options to officers employees directors consultants of atc south america.
 during year ended december 31 , 2004  atc south america granted options to purchase 6024 shares of atc south america common stock to officers employees including messrs.
 gearon and hess  received options to purchase approximate 6. 7% ( 6. 7 % ) and 1. 6% ( 1. 6 % ) interest  respectively.
 options issued one time with exercise price of $ 1349 per share.
 exercise price per share at fair market value on date of issuance determined by board of directors assistance independent financial advisor company 2019s request.
 fair value of atc south america plan options granted during 2004 were $ 79 per share determined black-scholes option pricing model.
 options granted vested upon earlier occur ) exercise by behalf of mr.
 gearon of right to sell interest in atc south america to company b ) exercise by company right to acquire mr.
 gearon 2019s interest in atc south america  c ) july 1 , 2006.
 options expired ten years from date of grant.
october 2005 connection with exercise by mr.
 gearon 2019s right to require company to purchase interest in atc south america all options granted atc south america stock option plan vested full exercised.
 exercise holders received 4428 shares of atc south america ( representing 7. 8%. % ) interest ) net of 1596 shares retained company to satisfy employee tax withholding obligations.
 see note 11. ) employee stock purchase plan 2014the company maintains employee stock purchase plan ( espp ) for all eligible employees.
 under espp shares of company 2019s class a common stock be purchased during bi-annual offering periods at 85% ( 85 % ) of lower fair market value on first or last day of each offering period.
 employees purchase shares value not exceeding 15% ( 15 % ) of gross compensation during offering period not purchase more than $ 25000 worth stock in a calendar year ( based on market values at beginning each offering period ).
 offering periods run from june 1 through november 30 and december 1 through may 31 each year.
 during 2007 , 2006 2005  offering periods employees purchased 48886 , 53210 and 50119 shares  at weighted average prices per share of $ 33. 93 , $ 24. 98 $ 15. 32 .
 fair value of espp offerings estimated on offering period commencement date using black-scholes pricing model with expense recognized over expected life six month offering period employees accumulate payroll deductions to purchase company 2019s class common stock.
 weighted average fair value for espp shares purchased during 2007 , 2006 and 2005 were $ 9. 09 , $ 6. 79 and $ 5. 15 .
 at december 31 , 2007  3895402 shares remain reserved for future issuance under plan.
key assumptions used apply pricing model years ended december 31 , are as follows:.

| 2007                                      | 2006                                      | 2005
-------------------------------------------------------------- | ----------------------------------------- | ----------------------------------------- | -----------------------------------------
range of risk free interest rates                              | 4.98% ( 4.98 % ) 20145.05% ( 20145.05 % ) | 5.01% ( 5.01 % ) 20145.17% ( 20145.17 % ) | 3.17% ( 3.17 % ) 20144.30% ( 20144.30 % )
weighted average risk-free interest rate                       | 5.02% ( 5.02 % )                          | 5.08% ( 5.08 % )                          | 3.72% ( 3.72 % )
expected life of the shares                                    | 6 months                                  | 6 months                                  | 6 months
range of expected volatility of underlying stock price         | 27.5% ( 27.5 % ) 201428.7% ( 201428.7 % ) | 29.6% ( 29.6 % )                          | 29.6% ( 29.6 % ) 201477.8% ( 201477.8 % )
weighted average expected volatility of underlying stock price | 28.2% ( 28.2 % )                          | 29.6% ( 29.6 % )                          | 54.30% ( 54.30 % )
expected annual dividends                                      | n/a                                       | n/a                                       | n/a


included in loan table are purchased distressed loans evidenced significant credit deterioration subsequent to origination but prior to acquisition by citigroup.
 accordance with sop 03-3  difference between total expected cash flows for these loans and initial recorded investments is recognized in income over life of loans using level yield.
 these loans excluded from impaired loan information.
 per sop 03-3  subsequent decreases to expected cash flows for purchased distressed loan require build of allowance so loan retains level yield.
 increases in expected cash flows first recognized as reduction of established allowance and then recognized as income prospectively over remaining life loan by increasing loan level yield.
 where expected cash flows cannot be reliably estimated purchased distressed loan is accounted for under cost recovery method.
 carrying amount of purchased distressed loan portfolio at december 31, 2009 was $ 825 million net of allowance of $ 95 million.
 changes in accretable yield  related allowance and carrying amount net of accretable yield for 2009 are as follows : in millions of dollars accretable carrying amount of loan receivable allowance.
 1 balance reported in column 201ccarrying amount of loan receivable 201d consists of $ 87 million of purchased loans accounted for under level-yield method and $ 242 million under cost-recovery method.
 these balances represent fair value of loans at acquisition date.
 related total expected cash flows for level-yield loans were $ 101 million at acquisition dates.
 2 balance reported in column 201ccarrying amount of loan receivable 201d consists of $ 561 million of loans accounted for under level-yield method and $ 359 million accounted for under cost-recovery method.

in millions of dollars                 | accretable yield | carrying amount of loan receivable | allowance
-------------------------------------- | ---------------- | ---------------------------------- | ----------
beginning balance                      | $ 92             | $ 1510                             | $ 122
purchases ( 1 )                        | 14               | 329                                | 2014
disposals/payments received            | -5 ( 5 )         | -967 ( 967 )                       | 2014
accretion                              | -52 ( 52 )       | 52                                 | 2014
builds ( reductions ) to the allowance | -21 ( 21 )       | 1                                  | -27 ( 27 )
increase to expected cash flows        | 10               | 2                                  | 2014
fx/other                               | -11 ( 11 )       | -7 ( 7 )                           | 2014
balance december 31 2009 ( 2 )         | $ 27             | $ 920                              | $ 95


shareowner return performance graph performance graph and related information not deemed 201csoliciting material 201d or to be 201cfiled 201d with sec , nor information incorporated into future filing under securities act of 1933 or securities exchange act of 1934 , each as amended , except company specifically incorporates such information into such filing.
 graph shows five year comparison of cumulative total shareowners 2019 returns for class b common stock , standard & poor 2019s 500 index , and dow jones transportation average.
 comparison of total cumulative return on investment , is change in quarterly stock price plus reinvested dividends for each quarterly periods , assumes $ 100 invested on december 31 , 2010 in standard & poor 2019s 500 index , dow jones transportation average , and class b common stock.

| 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 103.88   | $ 107.87   | $ 158.07   | $ 171.77   | $ 160.61
standard & poor 2019s 500 index  | $ 100.00   | $ 102.11   | $ 118.43   | $ 156.77   | $ 178.22   | $ 180.67
dow jones transportation average | $ 100.00   | $ 100.01   | $ 107.49   | $ 151.97   | $ 190.08   | $ 158.23


table contents marketaxess holdings inc.
 notes to consolidated financial statements 2014 continued ) ( in thousands  except share and per share amounts ) combined aggregate redemption requirements for senior preferred shares : shares of series b convertible preferred stock convertible into common stock 3. 33-for-one basis only connection with initial public offering of company 2019s stock.
 dividends on series b convertible preferred stock accrued 8% ( 8 % ) per annum subordinate to dividend payments senior preferred shares.
 shares series b convertible preferred stock had liquidation preference equal to original issue price plus all cumulative accrued unpaid dividends.
 liquidation preference subordinate to senior preferred shares.
 cumulative accrued unpaid dividends forfeited upon conversion of shares series b convertible preferred stock into common stock.
 company did not accrue dividends liquidation of shares series b convertible preferred stock not anticipated.
 as of december 31 , 2004 , company had 110000000 authorized shares of common stock and 10000000 authorized shares of non-voting common stock.
 as of december 31 , 2003 , company had 120000000 authorized shares of common stock and 450060 authorized shares of non-voting common stock.
 common stock entitles holder to one vote per share of common stock held.
 non-voting common stock convertible one-for-one basis into shares common stock subject to limitation on conversion extent conversion in stockholder  with affiliates owning more than 9. 99% ( 9. 99 % ) of outstanding shares of common stock.
march 30 , 2004  company 2019s board of directors authorized november 1 , 2004 company effectuated one-for-three reverse stock split of shares common stock and non-voting common stock effective prior to closing company 2019s initial public offering.
 references in financial statements to number of shares of common stock and non-voting common stock company , securities convertible or exercisable and per share amounts restated for all periods to reflect effect of common stock reverse stock split.
 in 2004 and 2003  company had 1939734 shares and 1937141 shares , respectively of common stock issued to employees.
 included 2001  company awarded 64001 shares and 289581 shares to employees at $. 003 and $ 3. 60 , respectively  per share.
 common stock subscribed issued in 2001 in exchange for three-year promissory notes ( 64001 shares ) and eleven-year promissory notes ( 289581 shares ) bear interest at applicable federal rate collateralized by subscribed shares.
 promissory note due in 2004 repaid january 15 , 2005.
 compensation expense in relation to excess of fair value of awards over amount paid recorded over vesting period.
 awards vest over period of one and one-half or three years restricted to transferability based on vesting schedule in award agreement.
 eleven-year promissory notes ( 289581 shares ) entered into in connection with loans of approximately $ 1042 made to company 2019s chief executive officer in 2001.
 loans made prior to passage of sarbanes-oxley act of 2002.
 convertible preferred stock 9.
 stockholders 2019 equity ( deficit ) common stock restricted common stock and common stock subscribed

year ended december 31, | as of december 31 , 2004 | as of december 31 , 2003
----------------------- | ------------------------ | ------------------------
2005                    | $ 2014                   | $ 177973


aes corporation notes consolidated financial statements 2014 continued ) december 31 , 2011 , 2010  2009 company for aggregate proceeds of approximately $ 234 million.
 company recognized gain on disposal of $ 6 million  net of tax year ended december 31 , 2010.
 previously reported in asia generation segment.
 23.
 acquisitions dispositions acquisitions dpl 2014on november 28 , 2011  aes completed acquisition of 100% ( % ) common stock of dpl for approximately $ 3. 5 billion  terms conditions definitive agreement ( 201cmerger agreement 201d ) dated april 19 , 2011.
 dpl serves over 500000 customers primarily west central ohio through operating subsidiaries dp&l and dpl energy resources.
 dpl operates over 3800 mw of power generation facilities provides competitive retail energy services to residential  commercial industrial governmental customers.
 acquisition strengthens company.
 utility operations by expanding in midwest and pjm  regional transmission organization serving eastern states eastern interconnection.
 company expects to benefit from regional scale provided by indianapolis power & light company nearby integrated utility business indiana.
 aes funded aggregate purchase consideration through combination : 2022 proceeds from $ 1. 05 billion term loan may 2011 ; 2022 proceeds from private offering of $ 1. 0 billion notes in june 2011 ; 2022 temporary borrowings of $ 251 million under revolving credit facility ; 2022 proceeds from private offerings of $ 450 million aggregate principal amount of 6. 50% (. 50 % ) senior notes due 2016 and $ 800 million aggregate principal amount of 7. 25% (. 25 % ) senior notes due 2021 collectively 201cnotes 201d ) in october 2011 by dolphin subsidiary ii , inc.
( 201cdolphin ii 201d ) wholly-owned special purpose indirect subsidiary of aes  merged into dpl upon completion acquisition.
 fair value of consideration paid for dpl follows ( in millions ) :.

agreed enterprise value                                     | $ 4719
----------------------------------------------------------- | --------------
less : fair value of assumed long-term debt outstanding net | -1255 ( 1255 )
cash consideration paid to dpl 2019s common stockholders    | 3464
add : cash paid for outstanding stock-based awards          | 19
total cash consideration paid                               | $ 3483


billion at december 31 , 2008 and december 31 , 2007  respectively.
 securities and other marketable assets held as collateral amounted to $ 27 billion and $ 54 billion majority collateral held to reimburse losses under securities lending indemnifications.
 decrease from prior year in line with decrease in notional amount of these indemnifications collateralized.
 letters of credit in favor of company held as collateral amounted to $ 503 million and $ 370 million at december 31, 2008 and december 31 , 2007  respectively.
 other property may also be available to cover losses under certain guarantees and indemnifications value of property not determined.
 performance risk citigroup evaluates performance risk of guarantees based on assigned referenced counterparty internal or external ratings.
 external investment-grade ratings considered to be baa/bbb and above anything below considered non-investment grade.
 citigroup internal ratings in line with related external rating system.
 on certain underlying referenced credits or entities ratings not available.
 such referenced credits included in 201cnot-rated 201d category.
 maximum potential amount of future payments related to guarantees and credit derivatives sold is determined to be notional amount of these contracts par amount of assets guaranteed.
 presented in table below is maximum potential amount of future payments classified based upon internal and external credit ratings as of december 31 , 2008.
 determination of maximum potential future payments based on notional amount of guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged.
 such amounts bear no relationship to anticipated losses on these guarantees.
credit derivatives credit derivative is a bilateral contract between buyer and seller seller sells protection against credit risk of a particular entity ( 201creference entity 201d or 201creference credit 201d ).
 credit derivatives require seller of credit protection make payments to buyer upon occurrence of predefined credit events ( referred to as 201csettlement triggers 201d ).
 these settlement triggers defined by form of derivative and reference credit limited to market standard of failure to pay on indebtedness bankruptcy of reference credit  in limited transactions , debt restructuring.
 credit derivative transactions referring to emerging market reference credits also include additional settlement triggers to cover acceleration of indebtedness risk of repudiation or payment moratorium.
 in certain transactions  protection may be provided on a portfolio of referenced credits or asset-backed securities.
 seller of protection may not be required to make payment until specified amount of losses occurred portfolio/or may only be required to pay for losses up to specified amount.
 company makes markets in and trades range of credit derivatives , on behalf of clients for its own account.
 contracts company purchases or writes protection on single name or portfolio of reference credits.
 company uses credit derivatives to mitigate credit risk in corporate loan portfolio and other cash positions  take proprietary trading positions  facilitate client transactions.
 range of credit derivatives sold includes credit default swaps , total return swaps credit options.
 a credit default swap is a contract in for a fee  protection seller ( guarantor ) agrees to reimburse protection buyer ( beneficiary ) for losses due to a credit event on a reference entity.
if no credit default event or settlement trigger , as defined by specific derivative contract , guarantor makes no payments to beneficiary receives only contractually specified fee.
 , if credit event occurs and in accordance with specific derivative contract sold , guarantor required to make payment to beneficiary.
 total return swap transfers total economic performance of reference asset , includes all associated cash flows , capital appreciation or depreciation.
 protection buyer ( beneficiary ) receives floating rate of interest and any depreciation on reference asset from protection seller ( guarantor ) , and in return protection seller receives cash flows associated with reference asset , plus any appreciation.
 beneficiary obligated to make payment any time floating interest rate payment according to total return swap agreement and any depreciation of reference asset exceed cash flows associated with underlying asset.
 total return swap may terminate upon default of reference asset subject to provisions in related total return swap agreement between protection seller ( guarantor ) and protection buyer ( beneficiary ).

in billions of dollars                             | maximum potential amount of future payments investment grade | maximum potential amount of future payments non-investment grade | maximum potential amount of future payments not rated | maximum potential amount of future payments total
-------------------------------------------------- | ------------------------------------------------------------ | ---------------------------------------------------------------- | ----------------------------------------------------- | -------------------------------------------------
financial standby letters of credit                | $ 49.2                                                       | $ 28.6                                                           | $ 16.4                                                | $ 94.2
performance guarantees                             | 5.7                                                          | 5.0                                                              | 5.6                                                   | 16.3
derivative instruments deemed to be guarantees     | 2014                                                         | 2014                                                             | 67.9                                                  | 67.9
guarantees of collection of contractual cash flows | 2014                                                         | 2014                                                             | 0.3                                                   | 0.3
loans sold with recourse                           | 2014                                                         | 2014                                                             | 0.3                                                   | 0.3
securities lending indemnifications                | 2014                                                         | 2014                                                             | 47.6                                                  | 47.6
credit card merchant processing                    | 2014                                                         | 2014                                                             | 56.7                                                  | 56.7
custody indemnifications and other                 | 18.5                                                         | 3.1                                                              | 2014                                                  | 21.6
total                                              | $ 73.4                                                       | $ 36.7                                                           | $ 194.8                                               | $ 304.9


system energy resources , inc.
 management's financial discussion analysis operating activities cash flow increased by $ 232. 1 million in 2004 due to income tax refunds of $ 70. 6 million in 2004 compared to payments $ 230. 9 million in 2003.
 increase partially offset by money pool activity  discussed.
 in 2003  domestic utility companies and system energy filed with irs change in tax accounting method notification for calculations cost of goods sold.
 adjustment implemented simplified method of allocation of overhead to production electricity under irs capitalization regulations.
 cumulative adjustment companies new methodology resulted in $ 430 million deduction for system energy on entergy's 2003 income tax return.
 no cash benefit from method change in 2003.
 in 2004 system energy realized $ 144 million in cash tax benefit from method change.
 tax accounting method change issue across utility industry likely be challenged by irs on audit.
 cash flow from operations decreased by $ 124. 8 million in 2003 due to 2022 increase in federal income taxes paid of $ 74. 0 million in 2003 compared to 2002 ; 2022 cessation of entergy mississippi ggart.
 system energy collected $ 21. 7 million in 2003 and $ 40. 8 million in 2002 from entergy mississippi ggart for acceleration of entergy mississippi's grand gulf purchased power obligation.
 mpsc authorized cessation of ggart effective july 1 , 2003.
 see note 2 to domestic utility companies system energy financial statements for discussion of ggart ; 2022 money pool activity.
 system energy's receivables from money pool were as of december 31 for each following years:.
 money pool activity used $ 42. 5 million of system energy's operating cash flows in 2004 used $ 12. 0 million in 2003  provided $ 6.8 million in 2002.
 see note 4 to domestic utility companies system energy financial statements for description money pool.
 investing activities net cash for investing activities unchanged in 2004 compared to 2003 primarily increase in construction expenditures by reclassification of inventory items to capital offset by maturity of $ 6. 5 million other temporary investments made in 2003, provided cash in 2004.
 increase of $ 16. 2 million in net cash in investing activities in 2003 due to : 2022 maturity in 2002 of $ 22. 4 million other temporary investments made in 2001  provided cash in 2002 ; 2022 increase in decommissioning trust contributions realized change in trust assets of $ 8. 2 million in 2003 compared to 2002 ; 2022 other temporary investments of $ 6. 5 million in 2003.
 partially offsetting increases in net cash investing activities decrease in construction expenditures of $ 22. 1 million in 2003 compared to 2002 due to power uprate project in 2002.

2004             | 2003             | 2002             | 2001
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 61592          | $ 19064          | $ 7046           | $ 13853


republic services , inc.
 notes to consolidated financial statements 2014 continued in december 2008  board of directors amended restated republic services  inc.
 2006 incentive stock plan ( formerly known as allied waste industries , inc.
 2006 incentive stock plan ( 2006 plan ) ).
 allied 2019s stockholders approved 2006 plan in may 2006.
 2006 plan amended restated in december 2008 to reflect republic services , inc.
 new sponsor of plan references to shares common stock shares common stock republic services , inc. adjust outstanding awards number of shares available under plan to reflect acquisition.
 2006 plan  amended restated provides for grant of non-qualified stock options  incentive stock options  shares of restricted stock  shares phantom stock  stock bonuses restricted stock units stock appreciation rights  performance awards dividend equivalents  cash awards other stock-based awards.
 awards granted under 2006 plan prior to december 5, 2008 became fully vested nonforfeitable upon closing of acquisition.
 awards may be granted under 2006 plan  amended after december 5 , 2008 only to employees consultants of allied waste industries , inc.
 subsidiaries not employed by republic services , inc.
 prior to such date.
 at december 31 , 2012  approximately 15. 5 million shares of common stock reserved for future grants under 2006 plan.
 stock options use binomial option-pricing model to value stock option grants.
 recognize compensation expense on straight-line basis over requisite service period for each separately vesting portion of award  or to employee 2019s retirement eligible date  earlier.
 expected volatility based on weighted average of recent one year volatility historical rolling average volatility of our stock over expected life of option.
 risk-free interest rate based on federal reserve rates for bonds with maturity dates equal to expected term of option.
 use historical data to estimate future option exercises forfeitures ( at 3. 0% ( 3. 0 % ) for each period presented ) and expected life of options.
 appropriate separate groups of employees similar historical exercise behavior considered separately for valuation purposes.
 weighted-average estimated fair values of stock options granted during years ended december 31, 2012  2011 2010 were $ 4. 77 , $ 5. 35 $ 5. 28 per option  calculated using weighted-average assumptions:.

| 2012             | 2011             | 2010
----------------------------- | ---------------- | ---------------- | ----------------
expected volatility           | 27.8% ( 27.8 % ) | 27.3% ( 27.3 % ) | 28.6% ( 28.6 % )
risk-free interest rate       | 0.8% ( 0.8 % )   | 1.7% ( 1.7 % )   | 2.4% ( 2.4 % )
dividend yield                | 3.2% ( 3.2 % )   | 2.7% ( 2.7 % )   | 2.9% ( 2.9 % )
expected life ( in years )    | 4.5              | 4.4              | 4.3
contractual life ( in years ) | 7.0              | 7.0              | 7.0


table of contents interest expense  net capitalized interest decreased $ 129 million or 18. 1% (. 1 % ) in 2014 from 2013 period due to $ 63 million decrease in special charges recognized period-over-period refinancing activities resulted in $ 65 million less interest expense recognized in 2014.
 2014 american recognized $ 29 million of special charges to non-cash interest accretion on bankruptcy settlement obligations.
 in 2013  american recognized $ 48 million of special charges post-petition interest expense on unsecured obligations plan and penalty interest related to american 2019s 10. 5% (. 5 % ) secured notes and 7. 50%. % ) senior secured notes.
 in 2013 american recorded special charges of $ 44 million for debt extinguishment costs repayment of certain aircraft secured indebtedness including cash interest charges non-cash write offs of unamortized debt issuance costs.
 2013 refinancing activities early extinguishment of american 2019s 7. 50% (. % ) senior secured notes in 2014 american recognized $ 65 million less interest expense in 2014 compared to 2013 period.
 other nonoperating expense  net of $ 153 million in 2014 of net foreign currency losses of $ 92 million early debt extinguishment charges of $ 48 million.
 other nonoperating expense net of $ 84 million in 2013 net foreign currency losses of $ 55 million early debt extinguishment charges of $ 29 million.
 other nonoperating expense  net increased $ 69 million or 81. 0% ( 81. 0 % )  during 2014 primarily due to special charges early debt extinguishment and increase in foreign currency losses by strengthening of u.
 dollar in foreign currency transactions principally in latin american markets.
american recorded $ 43 million special charge for venezuelan foreign currency losses in 2014.
 see part ii , item 7a.
 quantitative qualitative disclosures about market risk for discussion of cash held in venezuelan bolivars.
 american 2019s nonoperating special items included $ 48 million in special charges in 2014 primarily related to early extinguishment of american 2019s 7. 50% ( 7. 50 % ) senior secured notes other indebtedness.
 reorganization items  net reorganization items refer to revenues  expenses ( including professional fees ) realized gains losses provisions for losses realized incurred direct result of chapter 11 cases.
 table summarizes components included in reorganization items  net on american 2019s consolidated statement of operations for year ended december 31 , 2013 ( in millions ) :.
 exchange for employees 2019 contributions to successful reorganization including agreeing reductions in pay and benefits american agreed plan to provide each employee group deemed claim  used provide distribution of portion of equity of reorganized entity to employees.
 each employee group received deemed claim amount based upon portion of value of cost savings provided group through reductions to pay benefits certain work rule changes.
 total value of deemed claim was approximately $ 1. 7 billion.
 amounts include allowed claims ( claims approved by bankruptcy court ) estimated allowed claims relating to rejection or modification of financings related to aircraft entry of orders treated as unsecured claims with respect facility agreements supporting certain issuances of special facility revenue bonds.
 debtors recorded estimated claim associated with rejection or modification of financing or facility agreement when applicable motion filed with bankruptcy court to reject or modify

| 2013
------------------------------------------------------------------------- | ------
labor-related deemed claim ( 1 )                                          | $ 1733
aircraft and facility financing renegotiations and rejections ( 2 ) ( 3 ) | 320
fair value of conversion discount ( 4 )                                   | 218
professional fees                                                         | 199
other                                                                     | 170
total reorganization items net                                            | $ 2640


long-term borrowings carrying value and fair value estimated using market prices at december 31 , 2013 included : ( in millions ) maturity amount unamortized discount carrying value fair value.
 long-term borrowings at december 31 , 2012 had carrying value $ 5. 687 billion fair value of $ 6. 275 billion determined using market prices at end of december 2012.
 2015 and 2022 notes.
 in may 2012  company issued $ 1. 5 billion in aggregate principal amount unsecured unsubordinated obligations.
 notes issued as two separate series of senior debt securities including $ 750 million of 1. 375% ( 1. 375 % ) notes maturing in june 2015 ( 201c2015 notes 201d ) and $ 750 million of 3. 375% ( 3. 375 % ) notes maturing in june 2022 ( 201c2022 notes 201d ).
 net proceeds used to fund repurchase of blackrock 2019s common stock and series b preferred from barclays and affiliates for general corporate purposes.
 interest on 2015 notes and 2022 notes of approximately $ 10 million and $ 25 million per year payable semi-annually on june 1 and december 1 of each year commenced december 1 , 2012.
 2015 notes and 2022 notes may be redeemed prior to maturity in whole or in part at option of company at 201cmake-whole 201d redemption price.
 redemption price represents price  subject to specific terms of 2015 and 2022 notes greater of par value and present value of future payments not paid because of early redemption discounted at fixed spread over comparable treasury security.
 2015 notes and 2022 notes issued at discount of $ 5 million amortized over term of notes.
 company incurred approximately $ 7 million of debt issuance costs amortized over terms of 2015 notes and 2022 notes.
december 31, 2013 , $ 5 million unamortized debt issuance costs included in other assets on consolidated statement of financial condition.
 2013 and 2021 notes.
 may 2011  company issued $ 1. 5 billion aggregate unsecured unsubordinated obligations.
 notes issued as two separate series senior debt securities including $ 750 million of 4. 25% ( 4. 25 % ) notes maturing in may 2021 and $ 750 million floating rate notes ( 201c2013 floating rate notes 201d ) repaid may 2013 at maturity.
 net proceeds used to fund repurchase of blackrock 2019s series b preferred from affiliates merrill lynch & co. , inc.
 ( 201cmerrill lynch 201d ).
 interest on 4. 25% ( 4. 25 % ) notes due in 2021 ( 201c2021 notes 201d ) payable semi-annually may 24 and november 24 each year commenced november 24 , 2011 approximately $ 32 million per year.
 2021 notes may be redeemed prior to maturity in whole or part at option company at 201cmake-whole 201d redemption price.
 2021 notes issued at discount of $ 4 million amortized over term of notes.
 company incurred approximately $ 7 million debt issuance costs for $ 1. 5 billion note issuances amortized over respective terms of notes.
 december 31 , 2013 , $ 3 million unamortized debt issuance costs included in other assets on consolidated statement of financial condition.
 may 2011  with issuance 2013 floating rate notes company entered into $ 750 million notional interest rate swap maturing in 2013 to hedge future cash flows obligation at fixed rate of 1. 03% ( 1. 03 % ).
 second quarter of 2013  interest rate swap matured 2013 floating rate notes fully repaid.
 2012 , 2014 and 2019 notes.
december 2009  company issued $ 2. 5 billion in aggregate principal unsecured unsubordinated obligations.
 notes issued as three separate series senior debt securities including $ 0. 5 billion of 2. 25% ( 2. 25 % ) notes  repaid in december 2012 , $ 1. 0 billion of 3. 50% ( 3. 50 % ) notes $ 1. 0 billion of 5. 0% ( 5. 0 % ) notes maturing in december 2014 and 2019 .
 net proceeds used to repay borrowings under cp program finance acquisition of barclays global investors ( 201cbgi 201d ) from barclays december 1, 2009 ( 201cbgi transaction 201d ) for general corporate purposes.
 interest on 2014 notes and 2019 notes of approximately $ 35 million and $ 50 million per year payable semi-annually in arrears on june 10 december 10 each year.
 notes may be redeemed prior to maturity any in whole or part at option company at 201cmake-whole 201d redemption price.
 notes issued collectively at discount of $ 5 million  amortized over respective terms of notes.
 company incurred approximately $ 13 million of debt issuance costs amortized over respective terms of notes.
 at december 31 , 2013 $ 4 million of unamortized debt issuance costs included in other assets on consolidated statement of financial condition.
 2017 notes.
 september 2007  company issued $ 700 million aggregate principal amount of 6. 25% ( 6. 25 % ) senior unsecured unsubordinated notes maturing on september 15 , 2017 ( 201c2017 notes 201d ).
 portion of net proceeds of 2017 notes used to fund initial cash payment for acquisition of fund of funds business of quellos remainder used for general corporate purposes.
interest payable semi-annually arrears march 15 september 15 each year , or approximately $ 44 million per year.
 2017 notes may redeemed prior

( in millions )                   | maturity amount | unamortized discount | carrying value | fair value
--------------------------------- | --------------- | -------------------- | -------------- | ----------
3.50% ( 3.50 % ) notes due 2014   | $ 1000          | $ 2014               | $ 1000         | $ 1029
1.375% ( 1.375 % ) notes due 2015 | 750             | 2014                 | 750            | 759
6.25% ( 6.25 % ) notes due 2017   | 700             | -2 ( 2 )             | 698            | 812
5.00% ( 5.00 % ) notes due 2019   | 1000            | -2 ( 2 )             | 998            | 1140
4.25% ( 4.25 % ) notes due 2021   | 750             | -3 ( 3 )             | 747            | 799
3.375% ( 3.375 % ) notes due 2022 | 750             | -4 ( 4 )             | 746            | 745
total long-term borrowings        | $ 4950          | $ -11 ( 11 )         | $ 4939         | $ 5284


abiomed , inc.
 subsidiaries notes to consolidated financial statements 2014 continued ) 7 ) commitments contingencies company applies disclosure provisions of fin no.
 45 , guarantor 2019s accounting disclosure requirements for guarantees including guarantees of indebtedness others interpretation of fasb statements no.
 5 , 57 107 rescission of fasb interpretation no.
 34 ( fin no.
 45 ) to agreements guarantee or indemnification clauses.
 disclosure provisions expand required by sfas no.
 5 accounting for contingencies requiring guarantors disclose certain types of guarantees even if likelihood requiring guarantor 2019s performance remote.
 description of arrangements company guarantor.
 product warranties company accrues for estimated future warranty costs on product sales at time of sale.
 ab5000 bvs products subject to rigorous regulation quality standards.
 operating results could be adversely effected if actual cost of product failures exceeds estimated warranty provision.
 patent indemnifications 2014in sales transactions company indemnifies customers against possible claims of patent infringement by company 2019s products.
 indemnifications sales contracts do not include limits on claims.
 company never incurred material costs to defend lawsuits settle patent infringement claims related to sales transactions.
 under provisions of fin no.
 45  intellectual property indemnifications require disclosure only.
 as of march 31 , 2006  company entered into leases for facilities including primary operating facility in danvers , massachusetts terms through fiscal 2010.
 danvers lease may be extended at company 2019s option for two successive additional periods of five years each with monthly rent charges determined based on current fair rental values.
company 2019s lease for aachen location expires august 2008 unless option to extend for additional four years exercised by company.
 in december 2005 closed office facility in netherlands , recording charge of approximately $ 58000 for remaining lease term.
 total rent expense under these leases  included in accompanying consolidated statements of operations approximated $ 821000 , $ 824000 $ 1262000 for fiscal years ended march 31 , 2004 , 2005 2006 , respectively.
 future minimum lease payments under all significant non-cancelable operating leases as of march 31 , 2006 are approximately as follows ( in thousands ) : fiscal year ending march 31 , operating leases.
 time-to-time company involved in legal administrative proceedings claims various types.
 while any litigation contains element uncertainty , management  consultation with company 2019s general counsel believes outcome of each other proceedings or claims pending or known threatened combined not expected have material adverse effect on company 2019s financial position , cash flow results.
 on may 15 , 2006 richard a.
 nazarian , selling stockholder representative , filed demand for arbitration ( amended ) with boston office of american arbitration association

fiscal year ending march 31,        | operating leases
----------------------------------- | ----------------
2007                                | 1703
2008                                | 1371
2009                                | 1035
2010                                | 710
total future minimum lease payments | $ 4819


changes in proved undeveloped reserves as of december 31 , 2013  627 mmboe reserves reported increase of 56 mmboe from december 31  2012.
 table shows changes in total proved undeveloped reserves for 2013 :.
 significant additions to proved undeveloped reserves during 2013 included 72 mmboe in eagle ford 49 mmboe in bakken shale plays due to development drilling.
 transfers from proved undeveloped to developed reserves included 57 mmboe in eagle ford 18 mmboe in bakken 7 mmboe in oklahoma resource basins due to producing wells.
 costs incurred in 2013, 2012 2011 to development of proved undeveloped reserves were $ 2536 million , $ 1995 million and $ 1107 million.
 total of 59 mmboe booked result of reliable technology.
 technologies included statistical analysis of production performance  decline curve analysis rate transient analysis reservoir simulation volumetric analysis.
 statistical nature of production performance with certain reservoir continuity quality within reliable technology areas sufficient proved undeveloped locations establish reasonable certainty criteria for booking reserves.
 projects can remain in proved undeveloped reserves for extended periods in certain situations large development projects more than five years to complete or timing of when additional gas compression needed.
 of 627 mmboe of proved undeveloped reserves at december 31, 2013 24 percent of volume associated with projects included in proved reserves for more than five years.
 majority of volume related to compression project in.
 sanctioned by board of directors in 2004.
 timing of installation of compression driven by reservoir performance project intended to maintain maximum production levels.
 performance of field since board project exceeded expectations.
 estimates of initial dry gas in place increased by roughly 10 percent between 2004 and 2010.
2012  compression project received approval of e. g.
 government  allowing design and planning work to progress towards implementation completion expected by mid-2016.
 other component of alba proved undeveloped reserves is infill well approved in 2013 to be drilled late 2014.
 proved undeveloped reserves for north gialo development , in libyan sahara desert booked for first time reserves in 2010.
 development  anticipated to take more than five years to be developed executed by operator encompasses continuous drilling program including design , fabrication installation of extensive liquid handling and gas recycling facilities.
 anecdotal evidence from similar development projects in region led to expected project execution of more than five years from reserves initially booked.
 interruptions with civil unrest in 2011 third-party labor strikes in 2013 extended project duration.
 no other significant undeveloped reserves expected to be developed more than five years after original booking.
 as of december 31 , 2013 future development costs estimated required for development of proved undeveloped liquid hydrocarbon , natural gas synthetic crude oil reserves related to continuing operations for years 2014 through 2018 projected to be $ 2894 million , $ 2567 million , $ 2020 million , $ 1452 million and $ 575 million.
 timing of future projects and estimated future development costs development undeveloped liquid hydrocarbon natural gas synthetic crude oil reserves are forward-looking statements based on assumptions including commodity prices  presently known physical data concerning size character of reservoirs economic recoverability  technology developments  future drilling success  industry economic conditions  levels cash flow from operations  production experience other operating considerations.
 extent assumptions prove inaccurate  actual recoveries , timing and development costs could be different than current estimates.

beginning of year                          | 571
------------------------------------------ | ------------
revisions of previous estimates            | 4
improved recovery                          | 7
purchases of reserves in place             | 16
extensions discoveries and other additions | 142
dispositions                               | -4 ( 4 )
transfer to proved developed               | -109 ( 109 )
end of year                                | 627


location approximate size ( sq.
 ft. ) segment majority owned or leased.
 our manufacturing facilities adequate to meet existing in-house production needs.
 continue to invest in plant sites to maintain viable operations add capacity necessary to meet business imperatives.
 most of manufacturing plants serve as distribution centers.
 operate distribution centers around world most leased  utilize third party logistics service providers to facilitate distribution of products and services.
 year end 2016 ecolab 2019s corporate headquarters of three adjacent multi-storied buildings in downtown st.
 paul , minnesota.
 main 19-story building constructed to specifications leased through june 30 , 2018.
 second building leased through 2019.
 company intends to vacate current leased buildings in 2018.
 third building owned.
 ecolab acquired 17-story north tower from travelers indemnity company in downtown st.
 paul , minnesota on august 4 , 2015.
 building became corporate headquarters in 2017.
 90 acre campus in eagan , minnesota owned and provides for future growth.
 eagan facility houses significant research and development center , data center and training facilities administrative functions.
 significant business presence in naperville , illinois  where water and paper operating segment maintain principal administrative offices and research center.
 discussed in part ii , item 8, note 6 , 201cdebt interest 201d of form 10-k company acquired beneficial interest in trust owning these facilities during 2015.
 energy operating segment maintains administrative and research facilities in sugar land , texas and additional research facilities in fresno , texas.
december 2013  announced construction new 133000 square-foot headquarters building adjacent to existing sugar land operations completed early 2016 renovation of existing 45000 square-foot research facilities in sugar land.
 significant regional administrative/or research facilities located in leiden , netherlands  campinas , brazil  pune , india  we own  monheim , germany  singapore  shanghai , china  zurich , switzerland  we lease.
 have network of small leased sales offices in united states lesser extent other parts of world.
 item 3.
 legal proceedings.
 discussion legal proceedings incorporated by reference from part ii , item 8 , note 15 , 201ccommitments contingencies , 201d of form 10-k considered integral part of part i , item 3 , 201clegal proceedings. 201d other environmental-related legal proceedings discussed at part i , item 1 ( c ) above under heading 201cenvironmental and regulatory considerations 201d incorporated herein by reference.
 item 4.
 mine safety disclosures.
 not applicable.

location               | approximatesize ( sq . ft. ) | segment                                | majorityowned orleased
---------------------- | ---------------------------- | -------------------------------------- | ----------------------
hamilton new zealand   | 96000                        | global institutional global industrial | owned
calgary alberta canada | 94000                        | global energy                          | owned
kwinana australia      | 87000                        | global institutional global industrial | owned
revesby australia      | 87000                        | global institutional global industrial | owned
yangsan korea          | 85000                        | global energy global industrial        | owned
cisterna italy         | 80000                        | global industrial                      | owned
rovigo italy           | 77000                        | global institutional                   | owned
cuautitlan mexico      | 76000                        | global institutional global industrial | owned
barueri brazil         | 75000                        | global institutional global industrial | leased
mullingar ireland      | 74000                        | global institutional global industrial | leased
mosta malta            | 73000                        | global institutional                   | leased


part ii item 5 : market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities motorola 2019s common stock listed on new york chicago stock exchanges.
 number of stockholders of record motorola common stock on january 31 , 2008 was 79907.
 information regarding securities authorized for issuance under equity compensation plans incorporated by reference to information under caption 201cequity compensation plan information 201d of motorola 2019s proxy statement for 2008 annual meeting of stockholders.
 remainder response item incorporates reference note 16, 201cquarterly other financial data ( unaudited ) 201d notes to consolidated financial statements under 201citem 8 : financial statements supplementary data 201d.
 table provides information acquisitions by company of shares common stock during quarter ended december 31 , 2007.
 issuer purchases of equity securities period ( ) total number of shares purchased 1 2 b ) average price paid per share 1 3 c ) total number of shares purchased as part of publicly announced plans or programs 2 d ) maximum number approximate dollar value ) of shares be purchased under plans or programs 2.
 1 in addition to purchases under 2006 stock repurchase program defined included column are transactions under company 2019s equity compensation plans involving delivery to company of 12043 shares of motorola common stock to satisfy tax withholding obligations connection with vesting of restricted stock granted to company employees.
 2 through actions taken on july 24 , 2006 and march 21 , 2007  board of directors authorized company to repurchase aggregate amount up to $ 7. 5 billion of outstanding shares of common stock over period ending june 2009  subject to market conditions ( 201c2006 stock repurchase program 201d ).
( 3 average price paid per share common stock repurchased under 2006 stock repurchase program is execution price excluding commissions brokers.

period               | ( a ) total number of shares purchased ( 1 ) ( 2 ) | ( b ) average price paid per share ( 1 ) ( 3 ) | ( c ) total number of shares purchased as part of publicly announced plans or programs ( 2 ) | ( d ) maximum number ( or approximate dollar value ) of shares that may yet be purchased under the plans or programs ( 2 )
-------------------- | -------------------------------------------------- | ---------------------------------------------- | -------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
9/30/07 to 10/26/07  | 2972951                                            | $ 18.84                                        | 2964225                                                                                | $ 4267375081
10/27/07 to 11/23/07 | 5709917                                            | $ 17.23                                        | 5706600                                                                                | $ 4169061854
11/24/07 to 12/31/07 | 25064045                                           | $ 16.04                                        | 25064045                                                                                | $ 3767061887
total                | 33746913                                           | $ 16.49                                        | 33734870                                                                                |


contents company receives foreign tax credit ( 201cftc 201d ) against.
 tax liability for foreign taxes paid by company including payments from separate account assets.
 separate account ftc estimated for current year using information from recent filed return adjusted for change in allocation of separate account investments to international equity markets during current year.
 actual current year ftc can vary from estimates due to actual ftcs passed by mutual funds.
 company recorded benefits of $ 16 , $ 11 $ 17 related to separate account ftc in years ended december 31 , 2008 , 2007  2006 .
 amounts included benefits related to true- ups of prior years 2019 tax returns of $ 4 , $ 0 and $ 7 in 2008  2007 and 2006.
 company 2019s unrecognized tax benefits increased by $ 15 during 2008 result of tax positions taken on company 2007 tax return and expected to be taken on 2008 tax return total unrecognized tax benefits to $ 91 as of december 31 , 2008.
 entire amount if recognized would affect effective tax rate.
 earnings ( losses ) per common share table represents earnings per common share data for past three years : for additional information on earnings losses ) per common share see note 2 of notes to consolidated financial statements.
 outlooks hartford provides projections forward-looking information in 201coutlook 201d sections within md&a.
 201coutlook 201d sections contain forward-looking statements particularly relating to company 2019s future financial performance.
 these forward-looking statements are estimates based on information currently available company made pursuant to safe harbor provisions of private securities litigation reform act of 1995 subject to precautionary statements in introduction to md&a.
results likely to differ  in past differed materially from forecast by company , depending on outcome of various factors , including those in each 201coutlook 201d section and in item 1a , risk factors.
 outlook during 2008 , company negatively impacted by conditions global financial markets and economic conditions in general.
 as these conditions persist in 2009 , company anticipate it continue to be negatively impacted , including effect of rating downgrades occurred and could occur in future.
 see risk factors in item 1a.
 retail in long-term  management believe market for retirement products will expand as individuals increasingly save and plan for retirement.
 demographic trends suggest as 201cbaby boom 201d generation matures  significant portion of united states population will allocate greater percentage of disposable incomes to saving for retirement years due to uncertainty surrounding social security system increases in average life expectancy.
 near-term  industry and company experiencing lower variable annuity sales as result of recent market turbulence uncertainty in u. s.
 financial system.
 current market pressures increasing expected claim costs , cost and volatility of hedging programs  level of capital needed to support living benefit guarantees.
 some companies begun to increase price of guaranteed living benefits and change level of guarantees offered.
 in 2009 , company intends to adjust pricing levels take actions to reduce risks in variable annuity product features to address risks costs associated with variable annuity benefit features in current economic environment explore other risk limiting techniques as increased hedging or other reinsurance structures.
 competitor reaction , including extent of competitor risk limiting strategies  difficult to predict may result in decline in retail 2019s market share.
 significant declines in equity markets increased equity market volatility likely to continue to impact cost and effectiveness of our gmwb hedging program.
equity market volatility could result in material losses in our hedging program.
 for more information gmwb hedging program see equity risk management section capital markets risk management.
 during volatile equity markets policyholders may allocate variable account assets to fixed account options fixed annuities may see increased deposits.
 fourth quarter of 2008  company seen increase in fixed.
 weighted average common shares outstanding dilutive potential common shares ( diluted ) 306. 7 319. 1 315. 9

| 2008             | 2007   | 2006
------------------------------------------------------------------------------------------- | ---------------- | ------ | ------
basic earnings ( losses ) per share                                                         | $ -8.99 ( 8.99 ) | $ 9.32 | $ 8.89
diluted earnings ( losses ) per share                                                       | $ -8.99 ( 8.99 ) | $ 9.24 | $ 8.69
weighted average common shares outstanding ( basic )                                        | 306.7            | 316.3  | 308.8
weighted average common shares outstanding and dilutive potential common shares ( diluted ) | 306.7            | 319.1  | 315.9


notes to consolidated financial statements continued ) note 8 2014commitments and contingencies provide renewal options for 3 to 7 additional years.
 leases for retail space are for 5 to 20 years  majority for 10 years often contain multi-year renewal options.
 as of september 29 , 2007  company 2019s total future minimum lease payments under noncancelable operating leases were $ 1. 4 billion  $ 1. 1 billion related to leases for retail space.
 rent expense under all operating leases including cancelable and noncancelable leases was $ 151 million , $ 138 million  and $ 140 million in 2007, 2006  2005  respectively.
 future minimum lease payments under noncancelable operating leases remaining terms in excess of one year as of september 29  2007 are as follows ( in millions ) : fiscal years.
 accrued warranty and indemnifications company offers basic limited parts and labor warranty on hardware products.
 basic warranty period for hardware products is typically one year from date of purchase end-user.
 company offers 90-day basic warranty for service parts repair company hardware products.
 company provides for estimated cost incurred under basic limited product warranties time related revenue recognized.
 factors in determining appropriate accruals for product warranty obligations include size of installed base of products subject to warranty protection  historical and projected warranty claim rates  projected cost-per-claim  knowledge of specific product failures outside company 2019s typical experience.
 company assesses adequacy of preexisting warranty liabilities and adjusts amounts as necessary based on actual experience and changes in future estimates.
 for products accounted for under subscription accounting.
 company recognizes warranty expense as incurred.
 company periodically provides updates to applications and system software to maintain software compliance with specifications.
estimated cost to develop updates accounted for as warranty costs recognized at time related software revenue recognized.
 factors considered in determining appropriate accruals related to updates include number of units delivered , number of updates expected occur  historical cost and estimated future cost of resources necessary to develop these updates.

2008                         | $ 155
---------------------------- | ------
2009                         | 172
2010                         | 173
2011                         | 160
2012                         | 148
thereafter                   | 617
total minimum lease payments | $ 1425


humana inc.
 notes consolidated financial statements 2014 continued ) amortization expense for other intangible assets was approximately $ 75 million 2017  $ 77 million 2016  $ 93 million 2015.
 following table presents estimate amortization expense for each five next fiscal years:.

| ( in millions )
--------------------------------- | ---------------
for the years ending december 31, |
2018                              | $ 64
2019                              | 54
2020                              | 52
2021                              | 19
2022                              | 16


note 6 : inventories use last-in, first-out ( lifo ) method for majority inventories in continental u. s.
 other inventories valued by first-in , first-out ( fifo ) method.
 fifo cost approximates current replacement cost.
 inventories measured using lifo must be valued at lower of cost or market.
 inventories measured using fifo must valued at lower of cost or net realizable value.
 inventories at december 31:.
 inventories valued under lifo method comprised $ 1. 57 billion and $ 1. 56 billion of total inventories at december 31, 2018 and 2017  respectively.
 note 7 : financial instruments potentially subject to credit risk consist principally of trade receivables interest- bearing investments.
 wholesale distributors of life-science products account for substantial portion of trade receivables ; collateral generally not required.
 mitigate risk concentration through ongoing credit-review procedures insurance.
 large portion of cash held by few major financial institutions.
 monitor exposures with these institutions do not expect institutions to fail to meet obligations.
 major financial institutions represent largest component of investments in corporate debt securities.
 accordance corporate risk-management policies monitor credit exposure to any one financial institution or corporate issuer.
 exposed to credit-related losses in event nonperformance by counterparties to risk-management instruments do not expect counterparties to fail to meet obligations given high credit ratings.
 consider all highly liquid investments with maturity of three months or less from date of purchase to be cash equivalents.
 cost investments approximates fair value.
equity investments accounted for using three methods depending on type equity investment : 2022 investments in companies we significant influence but not controlling interest accounted for using equity method  our share of earnings or losses reported in other-net , ( income ) expense.
 2022 for equity investments not readily determinable fair values measure investments at cost , less impairment , plus or minus changes from observable price changes in orderly transactions for identical or similar investment of same issuer.
 any change in recorded value recorded in other-net , ( income ) expense.
 2022 public equity investments measured and carried at fair value.
 change in fair value recognized in other-net , ( income ) expense.
 review equity investments other than public equity investments for indications of impairment regular basis.
 derivative activities initiated within guidelines documented corporate risk-management policies intended to offset losses and gains on assets , liabilities transactions hedged.
 management reviews correlation effectiveness of derivatives quarterly basis.

| 2018           | 2017
--------------------------------------- | -------------- | --------
finished products                       | $ 988.1        | $ 1211.4
work in process                         | 2628.2         | 2697.7
raw materials and supplies              | 506.5          | 488.8
total ( approximates replacement cost ) | 4122.8         | 4397.9
increase ( reduction ) to lifo cost     | -11.0 ( 11.0 ) | 60.4
inventories                             | $ 4111.8       | $ 4458.3