table of contents hologic , inc.
 notes to consolidated financial statements ( continued ) ( in thousands  except per share data ) location during fiscal 2009.
 company responsible for significant portion construction costs deemed for accounting purposes owner of building during construction period in accordance with asc 840 , leases , subsection 40-15-5.
 year ended september 27 , 2008 company recorded additional $ 4400 in fair market value of building completed in fiscal 2008.
 in addition to $ 3000 fair market value of land and $ 7700 fair market value related to building constructed recorded as of october 22 , 2007.
 company recorded such fair market value within property and equipment on consolidated balance sheets.
 at september 26 , 2009  company recorded $ 1508 in accrued expenses $ 16329 in other long-term liabilities related to obligation in consolidated balance sheet.
 term of lease for approximately ten years option to extend for two consecutive five-year terms.
 lease term commenced in may 2008 company began transferring company 2019s costa rican operations to this facility.
 expected process complete by february 2009.
 at completion of construction period company reviewed lease for potential sale-leaseback treatment accordance with asc 840 , subsection 40 , sale-leaseback transactions ( formerly sfas no.
 98 ( 201csfas 98 201d ) , accounting for leases : sale-leaseback transactions involving real estate  sales-type leases of real estate  definition of lease term  initial direct costs of direct financing leases 2014an amendment of financial accounting standards board ( 201cfasb 201d ) statements no.
 13 , 66  91 rescission of fasb statement no.
 26 technical bulletin no.
 79-11 ).
analysis , company determined lease did not qualify for sale-leaseback treatment.
 building , leasehold improvements associated liabilities will remain on company 2019s financial statements throughout lease term building and leasehold improvements be depreciated on straight line basis over estimated useful lives of 35 years.
 future minimum lease payments , including principal and interest , under this lease were as follows at september 26 , 2009:.
 in result of merger with cytyc , company assumed obligation to non-cancelable lease agreement for building with approximately 146000 square feet in marlborough, massachusetts , principally used as additional manufacturing facility.
 in 2011 , company option to lease additional 30000 square feet.
 of lease agreement lessor agreed to allow company to make significant renovations to facility to prepare facility for company 2019s manufacturing needs.
 company responsible for significant construction costs deemed  for accounting purposes to be owner of building during construction period in accordance with asc 840-40-15-5.
 $ 13200 fair market value of facility is included within property and equipment , net on consolidated balance sheet.
 at september 26 , 2009 , company recorded $ 982 in accrued expenses source : hologic inc , 10-k , november 24, 2009 powered by morningstar ae document research 2120 information herein may not be copied , adapted or distributed not warranted to be accurate , complete or timely.
 user assumes all risks for any damages or losses arising from use of this information except to extent such damages or losses cannot be limited or excluded by applicable law.
 past financial performance is no guarantee of future results.

| amount
--------------------------------- | --------------
fiscal 2010                       | $ 1508
fiscal 2011                       | 1561
fiscal 2012                       | 1616
fiscal 2013                       | 1672
fiscal 2014                       | 1731
thereafter                        | 7288
total minimum payments            | 15376
less-amount representing interest | -6094 ( 6094 )
total                             | $ 9282


shareowner return performance graph performance graph and related information not deemed 201csoliciting material 201d or to be 201cfiled 201d with sec , nor such 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 , change in quarterly stock price plus reinvested dividends for each quarterly periods , assumes $ 100 invested on december 31 , 2011 in standard & poor 2019s 500 index , dow jones transportation average and class b common stock.

| 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 103.84   | $ 152.16   | $ 165.35   | $ 154.61   | $ 189.72
standard & poor 2019s 500 index  | $ 100.00   | $ 115.99   | $ 153.54   | $ 174.54   | $ 176.94   | $ 198.09
dow jones transportation average | $ 100.00   | $ 107.49   | $ 151.97   | $ 190.07   | $ 158.22   | $ 192.80


defined by fin 46 ( r )  result of issuance of subordinated notes by conduits to third-party investors not record these conduits in consolidated financial statements.
 at december 31 , 2006 and 2005  total assets in unconsolidated conduits were $ 25. 25 billion and $ 17. 90 billion  respectively.
 off-balance sheet commitments to conduits disclosed in note 10.
 collateralized debt obligations : manage series of collateralized debt obligations 201ccdos. cdo is managed investment vehicle purchases portfolio of diversified highly-rated assets.
 cdo funds purchases through issuance of several tranches of debt and equity repayment and return linked to performance of assets in cdo.
 involvement as collateral manager.
 may invest in small percentage of debt issued.
 entities meet definition of variable interest entity as defined by fin 46 ( r ).
 not primary beneficiary of these cdos defined by fin 46 ( r ) do not record these cdos in consolidated financial statements.
 at december 31 , 2006 and 2005  total assets in these cdos were $ 3. 48 billion and $ 2. 73 billion  respectively.
 during 2005  acquired and transferred $ 60 million of investment securities from available-for- sale portfolio into cdo.
 transfer executed at fair market value in exchange for cash treated as sale.
 did not acquire or transfer investment securities to cdo during 2006.
 note 12.
 shareholders 2019 equity treasury stock : during first quarter of 2006  purchased 3 million shares of common stock under program authorized by board of directors 201cboard 201d in 2005.
march 16, 2006 board authorized new program for purchase of up to 15 million shares common stock for general corporate purposes including mitigating dilutive impact of shares employee benefit programs terminated 2005 program.
 new program purchased 2. 8 million shares common stock during 2006 as of december 31 , 2006  12. 2 million shares available for purchase.
 utilize third-party broker-dealers to acquire common shares open market stock purchase program.
 shares may be acquired for other deferred compensation plans held by external trustee not part of common stock purchase program.
 as of december 31 , 2006 cumulative basis approximately 395000 shares purchased held in trust.
 shares recorded as treasury stock in consolidated statement of condition.
 during 2006 , 2005 2004  purchased and recorded as treasury stock total of 5. 8 million shares , 13. 1 million shares 4. 1 million shares  average historical cost per share of $ 63 , $ 51 and $ 43 .
 accumulated other comprehensive ( loss ) income.
 for year ended december 31 , 2006 realized net gains of $ 15 million on sales of available-for- sale securities.
 unrealized losses of $ 7 million included in other comprehensive income at december 31, 2005 net of deferred taxes of $ 4 million related to sales.
 86 copyarea : 38.
 x 54.
 trimsize : 8. 25 x 10. 75 state street corporation serverprocess c:\\fc\\delivery_1024177\\2771-1-dm_p. pdf chksum : 0 cycle 1merrill corporation 07-2771-1 thu mar 01 17:10:46 2007 ( v 2. 247w--stp1pae18 )

( in millions )                                                                 | 2006           | 2005           | 2004
------------------------------------------------------------------------------- | -------------- | -------------- | ----------
foreign currency translation                                                    | $ 197          | $ 73           | $ 213
unrealized gain ( loss ) on hedges of net investments in non-u.s . subsidiaries | -7 ( 7 )       | 11             | -26 ( 26 )
unrealized loss on available-for-sale securities                                | -227 ( 227 )   | -285 ( 285 )   | -56 ( 56 )
minimum pension liability                                                       | -186 ( 186 )   | -26 ( 26 )     | -26 ( 26 )
unrealized loss on cash flow hedges                                             | -1 ( 1 )       | -4 ( 4 )       | -13 ( 13 )
total                                                                           | $ -224 ( 224 ) | $ -231 ( 231 ) | $ 92


aggregate notional amounts interest rate caps as of december 31 , 2004 interest rate detail by contractual maturity dates thousands percentages ).
 as of december 31 , 2005 variable rate debt new american tower spectrasite credit facilities ( $ 1493. 0 million ) refinanced on october 27, 2005 included based october 27 , 2010 maturity dates.
 as december 31 , 2005 fixed rate debt 2. 25% ( 2. 25 % ) convertible notes due 2009 ( 2. 25% ( 2. 25 % ) notes ( $ 0. 1 million ) 7. 125% ( 7. 125 % ) notes ( $ 500. 0 million principal amount due maturity balance as of december 31, 2005 is $ 501. 9 million ) 5. 0% ( 5. 0 % ) notes ( $ 275. 7 million ) 3. 25% ( 3. 25 % ) notes ( $ 152. 9 million ) 7. 50% ( 7. 50 % ) notes ( $ 225. 0 million ) ati 7. 25% ( 7. 25 % ) notes ( $ 400. 0 million ) ati 12. 25% ( 12. 25 % ) notes ( $ 227. 7 million principal amount due at maturity balance as of december 31 , 2005 is $ 160. 3 million accreted value net allocated fair value related warrants of $ 7. 2 million ) 3. 00% ( 3. 00 % ) notes ( $ 345. 0 million principal amount due at maturity balance as of december 31 , 2005 is $ 344. 4 million accreted value ) other debt of $ 60. 4 million.
 interest on credit facilities payable london interbank offering rate ( libor ) agreement or quarterly accrues at option libor plus margin or base rate plus margin.
 weighted average interest rate at december 31 , 2005 for credit facilities was 4. 71% ( 4. 71 % ).
year ended december 31 , 2005 weighted average interest rate under credit facilities 5. 03% ( 5. 03 % ).
 as of december 31 , 2004 variable rate debt previous credit facility ( $ 698. 0 million ) fixed rate debt 2. 25% ( 2. 25 % ) notes ( $ 0. 1 million ) 7. 125% ( 7. 125 % ) notes ( $ 500. 0 million principal amount due at maturity balance as of december 31, 2004 $ 501. 9 million ) 5. 0% ( 5. 0 % ) notes ( $ 275. 7 million ) 3. 25% ( 3. 25 % ) notes ( $ 210. 0 million ) 7. 50% ( 7. 50 % ) notes ( $ 225. 0 million ) ati 7. 25% ( 7. 25 % ) notes ( $ 400. 0 million ) ati 12. 25% ( 12. 25 % ) notes ( $ 498. 3 million principal amount due at maturity balance as of december 31, 2004 $ 303. 8 million accreted value net allocated fair value related warrants of $ 21. 6 million ) 9 3 20448% ( 20448 % ) notes ( $ 274. 9 million ) 3. 00% ( 3. 00 % ) notes ( $ 345. 0 million principal amount due at maturity balance as of december 31, 2004 $ 344. 3 million accreted value ) other debt of $ 60. 0 million.
 interest on credit facility payable london interbank offering rate ( libor ) agreement or quarterly accrues at option libor plus margin or base rate plus margin.
 weighted average interest rate december 31 , 2004 credit facility was 4. 35% ( 4. 35 % ).
 year ended december 31 , 2004 weighted average interest rate credit facility was 3. 81% ( 3. 81 % ).
 includes notional amount of $ 175000 expires february 2006.
( c ) includes notional amount $ 25000 expires september 2007.
 ( d ) includes notional amounts $ 250000 and $ 100000 expire june and july 2006 respectively.
 ( e ) represents weighted-average fixed rate range interest based on contractual notional amount percentage of total notional amounts given year.
 ( f ) includes notional amounts $ 75000 , $ 75000 $ 150000 expire december 2009.
 ( g ) includes notional amounts $ 100000, $ 50000 $ 50000  $ 50000 $ 50000 expire october 2010.
 ( h ) includes notional amounts $ 50000 and $ 50000 expire october 2010.
 ( i ) includes notional amount $ 50000 expires october 2010.
 foreign operations include rental management segment divisions mexico brazil.
 remeasurement gain year ended december 31 , 2005 $ 396000  remeasurement losses years ended december 31 , 2004  2003 approximated $ 146000 , $ 1142000  respectively.
 changes in interest rates cause interest charges fluctuate on variable rate debt  comprised $ 1493. 0 million under credit facilities as of december 31 , 2005.
 10% ( 10 % ) increase  approximately 47 basis points, in current interest rates caused additional pre-tax charge net loss increase cash outflows $ 7. 0 million year ended december 31 , 2005.
 item 8.
 financial statements supplementary data see item 15 ( a ).
 item 9.
 changes in disagreements with accountants on accounting financial disclosure

interest rate caps    | 2005             | 2006
--------------------- | ---------------- | ----------------
notional amount ( d ) | $ 350000         | $ 350000
cap rate ( e )        | 6.00% ( 6.00 % ) | 6.00% ( 6.00 % )


ventas , inc.
 notes to consolidated financial statements 2014 ( continued ) applicable indenture.
 issuers may redeem 2015 senior notes , in whole or in part  on or after june 1 , 2010 at varying redemption prices in applicable indenture , plus accrued and unpaid interest to redemption date.
 in addition  prior to june 1 , 2008 , issuers may redeem up to 35% ( 35 % ) of aggregate principal amount of or both 2010 senior notes and 2015 senior notes with net cash proceeds from certain equity offerings at redemption prices equal to 106. 750% ( 106. 750 % ) and 107. 125% ( 107. 125 % ) , respectively  of principal amount thereof , plus  each accrued and unpaid interest to redemption date.
 issuers may redeem 2014 senior notes , in whole or in part  ( i ) prior to october 15 , 2009 at redemption price equal to 100% ( 100 % ) of principal amount , plus make-whole premium as described in applicable indenture and ( ii ) on or after october 15 , 2009 at varying redemption prices in applicable indenture , plus  each accrued and unpaid interest thereon to redemption date.
 issuers may redeem 2009 senior notes and 2012 senior notes , in whole time or in part  at redemption price equal to 100% ( 100 % ) of principal amount , plus accrued and unpaid interest to redemption date and make-whole premium as described in applicable indenture.
if we experience changes of control issuers must offer to repurchase senior notes or part at purchase price cash equal to 101% ( 101 % ) of principal amount senior notes plus accrued and unpaid interest to date of purchase ; provided moody 2019s and s&p confirmed ratings at ba3 or higher and bb- or higher on senior notes other conditions met repurchase obligation not apply.
 mortgages at december 31 , 2007 outstanding 121 mortgage loans totaling $ 1. 57 billion collateralized by underlying assets properties.
 outstanding principal balances loans ranged from $ 0. 4 million to $ 59. 4 million as of december 31 , 2007.
 loans bear interest at fixed rates from 5. 4% ( 5. 4 % ) to 8. 5% ( 8. 5 % ) per annum except for 15 loans with principal balances from $ 0. 4 million to $ 32. 0 million  bear interest at 2019s variable rates from 3. 4% ( 3. 4 % ) to 7. 3% ( 7. 3 % ) per annum as of december 31 , 2007.
 december 31 2007 weighted average annual rate on fixed rate debt was 6. 5% ( 6. 5 % ) average annual rate on variable rate debt was 6. 1% ( 6. 1 % ).
 loans had weighted average maturity of 7. 0 years as of december 31 , 2007.
 sunrise 2019s portion of total debt was $ 157. 1 million as of december 31  scheduled maturities of borrowing arrangements other provisions as of december 31 2007 indebtedness had following maturities ( in thousands ) :.

2008                                      | $ 193101
----------------------------------------- | --------------
2009                                      | 605762
2010                                      | 282138
2011                                      | 303191
2012                                      | 527221
thereafter                                | 1436263
total maturities                          | 3347676
unamortized fair value adjustment         | 19669
unamortized commission fees and discounts | -6846 ( 6846 )
senior notes payable and other debt       | $ 3360499


marathon oil corporation notes to consolidated financial statements equivalent to exchangeable shares at acquisition date discussed below.
 additional shares of voting preferred stock issued as necessary to adjust number of votes to account for changes in exchange ratio.
 preferred shares 2013 with acquisition of western discussed in note 6 , board of directors authorized class of voting preferred stock of 6 million shares.
 upon completion acquisition issued 5 million shares voting preferred stock to trustee  holds shares for benefit of holders of exchangeable shares discussed above.
 each share of voting preferred stock entitled to one vote on all matters submitted to holders of marathon common stock.
 each holder of exchangeable shares may direct trustee to vote number of shares of voting preferred stock equal to number of shares of marathon common stock issuable upon exchange of exchangeable shares held by holder.
 no will aggregate number of votes entitled cast by trustee with outstanding shares of voting preferred stock exceed number of votes entitled cast outstanding exchangeable shares.
 except otherwise provided in restated certificate of incorporation or by applicable law common stock and voting preferred stock vote together as single class in election of directors of marathon and on all other matters submitted to vote of stockholders marathon.
 voting preferred stock no other voting rights except required by law.
 other than dividends payable solely in shares of voting preferred stock , no dividend or other distribution  paid or payable to holder of voting preferred stock.
 in liquidation , dissolution or winding up of marathon  holder of shares of voting preferred stock not entitled to receive assets of marathon available for distribution to stockholders.
 voting preferred stock not convertible into any other class or series of capital stock of marathon or into cash , property or other rights  may not be redeemed.
 25.
 leases we lease wide variety of facilities equipment under operating leases including land building space office equipment production facilities transportation equipment.
 most long-term leases include renewal options certain leases purchase options.
 future minimum commitments for capital lease obligations ( including sale-leasebacks for financings ) operating lease obligations initial remaining noncancelable lease terms in excess of one year are as follows : ( in millions ) capital lease obligations ( a ) operating obligations.
 capital lease obligations include $ 164 million related to assets under construction as of december 31, 2009.
 these leases currently reported in long-term debt based on percentage of construction completed at $ 36 million.
 connection with past sales of plants operations assigned purchasers assumed certain leases of major equipment used in divested plants operations of united states steel.
 in default by purchasers united states steel assumed these obligations ; we remain primarily obligated for payments under these leases.
 minimum lease payments under operating lease obligations of $ 16 million included above equal amount reported as sublease rentals.

( in millions )                             | capital lease obligations ( a ) | operating lease obligations
------------------------------------------- | ------------------------------- | ---------------------------
2010                                        | $ 46                            | $ 165
2011                                        | 45                              | 140
2012                                        | 58                              | 121
2013                                        | 44                              | 102
2014                                        | 44                              | 84
later years                                 | 466                             | 313
sublease rentals                            | -                               | -16 ( 16 )
total minimum lease payments                | $ 703                           | $ 909
less imputed interest costs                 | -257 ( 257 )                    |
present value of net minimum lease payments | $ 446                           |


entergy new orleans , inc.
 management's financial discussion analysis receivables from money pool were as of december 31 for following years:.
 money pool activity provided $ 0. 4 million operating cash flow in 2004 $ 1. 7 million in 2003 $ 5. 7 million in 2002.
 see note 4 to domestic utility companies system energy financial statements for description money pool.
 investing activities net cash decreased $ 15. 5 million in 2004 due to capital expenditures turbine inspection project at fossil plant in 2003 decreased customer service spending.
 net cash investing increased $ 23. 2 million in 2003 compared to 2002 due to maturity of $ 14. 9 million of other temporary investments in 2002 increased construction expenditures due to increased customer service spending.
 financing activities net cash increased $ 7. 0 million in 2004 due to costs expenses to refinancing $ 75 million long-term debt in 2004 increase of $ 2. 2 million in common stock dividends paid.
 net cash in financing activities increased $ 1. 5 million in 2003 due to additional common stock dividends paid $ 2. 2 million.
 in july 2003 entergy new orleans issued $ 30 million of 3. 875% ( 3. 875 % ) series first mortgage bonds due august 2008 $ 70 million of 5. 25% ( 5. 25 % ) series first mortgage bonds due august 2013.
 proceeds from used to redeem $ 30 million of 7% ( 7 % ) series first mortgage bonds due july 2008 $ 40 million of 8% ( 8 % ) series bonds due march 2006 $ 30 million of 6. 65% ( 6. 65 % ) series first mortgage bonds due march 2004.
 issuances and redemptions not shown on cash flow statement proceeds from placed in trust for redemptions never held as cash by entergy new orleans.
note 5 domestic utility companies system energy financial statements for details on long- term debt.
 uses of capital entergy new orleans requires capital resources for 2022 construction other capital investments ; 2022 debt preferred stock maturities ; 2022 working capital purposes financing fuel purchased power costs 2022 dividend interest payments.

2004             | 2003             | 2002             | 2001
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 1413           | $ 1783           | $ 3500           | $ 9208


supplemental pro forma financial information ( unaudited ) table presents summarized unaudited pro forma financial information if sikorsky included in our financial results for entire year in 2015 ( in millions ) :.
 unaudited supplemental pro forma financial data calculated after applying accounting policies adjusting historical results of sikorskywith pro forma adjustments  net of tax assume acquisition occurred on january 1 , 2015.
 significant pro forma adjustments include recognition additional amortization expense related to acquired intangible assets and additional interest expense related to short-term debt to finance acquisition.
 adjustments assume application of fair value adjustments to intangibles and debt issuance occurred on january 1, 2015 approximated as : amortization expense of $ 125million and interest expense of $ 40million.
 significant nonrecurring adjustments include elimination of $ 72million pension curtailment loss  net of tax recognized in 2015 elimination of $ 58 million income tax charge related to historic earnings of foreign subsidiaries recognized by sikorsky in 2015.
 unaudited supplemental pro forma financial information reflects increase in interest expense , net of tax  of approximately $ 110 million in 2015.
 increase in interest expense result of assuming november 2015 notes were issued on january 1 , 2015.
 proceeds of november 2015 notes used to repay all outstanding borrowings under 364- day facility to finance portion of purchase price of sikorsky  contemplated at date of acquisition.
 unaudited supplemental pro forma financial information not reflect expected ongoing cost or revenue synergies relating to integration of two companies.
 pro forma data not considered indicative of results if acquisition , related financing associated notes issuance and repayment of 364-day facility consummated on january 1 , 2015 nor indicative of future results.
consolidation of awemanagement limited on august 24 , 2016  increased ownership interest in awe joint venture  operates united kingdom 2019s nuclear deterrent program  from 33% ( 33 % ) to 51% ( 51 % ).
 began consolidating awe.
 operating results include 100% ( 100 % ) of awe 2019s sales 51% ( 51 % ) of operating profit.
 prior to increasing ownership interest accounted for investment inawe using equity method of accounting.
 under equity method recognized only 33% ( 33 % ) ofawe 2019s earnings or losses no sales. prior toaugust 24 , 2016 obtained control recorded 33%ofawe 2019s net earnings in operating results subsequent to august 24, 2016 recognized 100% ( 100 % ) of awe 2019s sales and 51% ( 51 % ) of operating profit.
 accounted for transaction as 201cstep acquisition 201d ( defined by u. s.
 gaap )  requires to consolidate and record assets and liabilities ofawe at fair value. recorded intangible assets of $ 243million related to customer relationships  $ 32 million net liabilities  noncontrolling interests of $ 107 million.
 intangible assets being amortized over eight years with pattern economic benefit reflected by future net cash flows.
 in 2016we recognized non-cash net gain of $ 104million associatedwith obtaining controlling interest inawewhich consisted of $ 127 million pretax gain in operating results of space business segment and $ 23 million of tax-related items at corporate office.
 gain represents fair value of 51% ( 51 % ) interest inawe  less carrying value of previously held investment inawe and deferred taxes.
 gainwas recorded in other income  net on consolidated statements of earnings.
fair value ofawe ( including intangible assets ) , controlling interest  noncontrolling interests determined using income approach.
 divestiture of information systems & global solutions business onaugust 16 , 2016wedivested former is&gsbusinesswhichmergedwithleidos  in areversemorristrust transactionrr ( 201ctransaction 201d ).
 transaction completed in multi-step process initially contributed is&gs business to abacus innovations corporation ( abacus ) , wholly owned subsidiary of lockheed martin created to facilitate transaction common stock ofabacus distributed to participating lockheedmartin stockholders through exchange offer.
 under terms exchange offer lockheedmartin stockholders had option to exchange shares of lockheedmartin common stock for shares of abacus common stock.
 at conclusion exchange offer all shares of abacus common stock exchanged for 9369694 shares of lockheed martin common stock held by lockheed martin stockholders participate exchange. shares of lockheedmartin common stock exchanged and acceptedwere retired , reducing number of shares of common stock outstanding by approximately 3% ( 3 % ).
 following exchange offer abacus merged with

net sales                         | $ 45366
--------------------------------- | -------
net earnings                      | 3534
basic earnings per common share   | 11.39
diluted earnings per common share | 11.23


shareowner return performance graph performance graph and related information not deemed 201csoliciting material 201d or 201cfiled 201d with securities and exchange commission  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 filing.
 graph shows five year comparison of cumulative total shareowners 2019 returns for class b common stock , standard & poor 2019s 500 index  dow jones transportation average.
 comparison of total cumulative return on investment  change in quarterly stock price plus reinvested dividends for each quarterly periods  assumes $ 100 invested on december 31, 2005 in standard & poor 2019s 500 index , dow jones transportation average  class b common stock.
 comparison of five year cumulative total return $ 40. 00 $ 60. 00 $ 80. 00 $ 100. 00 $ 120. 00 $ 140. 00 $ 160. 00 201020092008200720062005 s&p 500 ups dj transport.

| 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10
-------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
united parcel service inc .      | $ 100.00 | $ 101.76 | $ 98.20  | $ 78.76  | $ 84.87  | $ 110.57
standard & poor 2019s 500 index  | $ 100.00 | $ 115.79 | $ 122.16 | $ 76.96  | $ 97.33  | $ 111.99
dow jones transportation average | $ 100.00 | $ 109.82 | $ 111.38 | $ 87.52  | $ 103.79 | $ 131.59


company elected fair-value option interest-rate risk of liabilities economically hedged with derivative contracts or proceeds used to purchase financial assets accounted for at fair value through earnings.
 election to mitigate accounting mismatches achieve operational simplifications.
 positions reported in short-term borrowings long-term debt on company 2019s consolidated balance sheet.
 majority of non-structured liabilities result of company 2019s election fair-value option for liabilities associated with citi-advised structured investment vehicles ( sivs )  consolidated during fourth quarter of 2007.
 change in fair values of sivs 2019 liabilities reported in earnings was $ 2. 6 billion for year ended december 31 , 2008.
 for these non-structured liabilities aggregate fair value $ 263 million lower than aggregate unpaid principal balance as of december 31 , 2008.
 for all other non-structured liabilities classified long-term debt for fair-value option elected aggregate unpaid principal balance exceeds aggregate fair value of instruments by $ 97 million as of december 31 , 2008 aggregate fair value exceeded aggregate unpaid principal by $ 112 million as of december 31 , 2007.
 change in fair value of non-structured liabilities reported gain of $ 1. 2 billion for year ended december 31 , 2008.
 change in fair value for non-structured liabilities reported in principal transactions in company 2019s consolidated statement of income.
 related interest expense measured based on contractual interest rates reported in consolidated income statement.
 certain mortgage loans citigroup elected fair-value option for certain purchased originated prime fixed-rate conforming adjustable-rate first mortgage loans held-for- sale.
 these loans intended for sale or securitization hedged with derivative instruments.
company elected fair-value option mitigate accounting mismatches hedge accounting complex achieve operational simplifications.
 fair-value option not elected for loans held-for-investment  loans not hedged with derivative instruments.
 election effective for instruments originated or purchased on or after september 1 , 2007.
 table provides information about certain mortgage loans carried at fair value : in millions of dollars december 31 ,, carrying amount reported on consolidated balance sheet $ 4273 $ 6392 aggregate fair value in excess of unpaid principal balance $ 138 $ 136 balance on non-accrual loans loans more than 90 days past due $ 9 $ 17 aggregate unpaid principal balance in excess of fair value for non-accrual loans more 90 days past due $ 2 $ 2014 changes in fair values of mortgage loans reported in other revenue in company 2019s consolidated statement of income.
 changes in fair value during year ended december 31 , 2008 due to instrument- specific credit risk resulted in $ 32 million loss.
 change in fair value during 2007 due to instrument-specific credit risk immaterial.
 related interest income measured based on contractual interest rates reported in consolidated income statement.
 items selected for fair-value accounting in accordance with sfas 155 and sfas 156 certain hybrid financial instruments company elected to apply fair-value accounting under sfas 155 for certain hybrid financial assets liabilities performance linked to risks other than interest rate  foreign exchange inflation (. equity  credit or commodity risks ).
 company elected fair-value accounting under sfas 155 for residual interests retained from securitizing certain financial assets.
 elected fair for instruments exposures considered trading-related positions managed on fair-value basis.
accounting for instruments simplified under fair-value approach eliminates complicated operational requirements of bifurcating embedded derivatives from host contracts accounting for each separately.
 hybrid financial instruments classified as trading account assets  loans  deposits trading account liabilities for prepaid derivatives short-term borrowings or long-term debt on company 2019s consolidated balance sheet residual interests in certain securitizations classified as trading account assets.
 for hybrid financial instruments for which fair-value accounting elected under sfas 155 classified as long-term debt aggregate unpaid principal exceeds aggregate fair value by $ 1. 9 billion as of december 31 , 2008 aggregate fair value exceeds unpaid principal balance by $ 460 million as of december 31 , 2007.
 difference for instruments classified as loans is immaterial.
 changes in fair value for hybrid financial instruments includes component for accrued interest recorded in principal transactions in company 2019s consolidated statement of income.
 interest accruals for certain hybrid instruments as trading assets recorded separately from change in fair value as interest revenue in company 2019s consolidated statement of income.
 mortgage servicing rights company accounts for mortgage servicing rights ( msrs ) at fair value in accordance with sfas 156.
 fair value for msrs determined using option-adjusted spread valuation approach.
 approach projecting servicing cash flows under multiple interest-rate scenarios discounting cash flows using risk-adjusted rates.
 model assumptions in valuation msrs include mortgage prepayment speeds and discount rates.
 fair value of msrs primarily affected by changes in prepayments from shifts in mortgage interest rates.
managing risk company hedges portion values msrs through interest-rate derivative contracts forward- purchase commitments of mortgage-backed securities purchased securities classified as trading.
 see note 23 on page 175 for discussions accounting reporting of msrs.
 these msrs totaled $ 5. 7 billion and $ 8. 4 billion as of december 31 , 2008 and december 31 , 2007 classified as mortgage servicing rights on citigroup 2019s consolidated balance sheet.
 changes in fair value of msrs recorded in commissions and fees in company 2019s consolidated statement of income.
 company elected fair-value option where interest-rate risk of liabilities economically hedged with derivative contracts or proceeds used to purchase financial assets accounted for at fair value through earnings.
 election to mitigate accounting mismatches achieve operational simplifications.
 positions reported in short-term borrowings long-term debt on company 2019s consolidated balance sheet.
 majority of non-structured liabilities result of company 2019s election of fair-value option for liabilities associated with citi-advised structured investment vehicles ( sivs ) consolidated during fourth quarter of 2007.
 change in fair values of sivs 2019 liabilities reported in earnings was $ 2. 6 billion for year ended december 31 , 2008.
 for these non-structured liabilities aggregate fair value is $ 263 million lower than aggregate unpaid principal balance as of december 31 , 2008.
 for all other non-structured liabilities classified as long-term debt for which fair-value option elected aggregate unpaid principal balance exceeds aggregate fair value of instruments by $ 97 million as of december 31 , 2008 aggregate fair value exceeded aggregate unpaid principal by $ 112 million as of december 31 , 2007.
change in fair value of non-structured liabilities reported gain of $ 1. 2 billion for year ended december 31 , 2008.
 change fair value reported in principal transactions in company 2019s consolidated statement of income.
 related interest expense measured based on contractual interest rates reported in income statement.
 certain mortgage loans citigroup elected fair-value option for certain purchased originated prime fixed-rate conforming adjustable-rate first mortgage loans held-for- sale.
 loans intended for sale or securitization hedged with derivative instruments.
 elected fair-value option to mitigate accounting mismatches hedge achieve operational simplifications.
 fair-value option not elected for loans held-for-investment  loans not hedged with derivative instruments.
 election effective for instruments originated or purchased on or after september 1 , 2007.
 table provides information about certain mortgage loans carried at fair value : in millions of dollars december 31 , carrying amount reported on consolidated balance sheet $ 4273 $ 6392 aggregate fair value in excess of unpaid principal balance $ 138 $ 136 balance on non-accrual loans or loans more than 90 days past due $ 9 $ 17 aggregate unpaid principal balance in excess of fair value for non-accrual loans more 90 days past due $ 2 $ 2014 changes in fair values of mortgage loans reported in other revenue in company 2019s consolidated statement of income.
 changes in fair value during year ended december 31 , 2008 due to instrument- specific credit risk resulted in $ 32 million loss.
 change in fair value during 2007 due to instrument-specific credit risk immaterial.
 related interest income measured based on contractual interest rates reported in consolidated income statement.
items selected for fair-value accounting in with sfas 155 and sfas 156 certain hybrid financial instruments company elected to apply fair-value accounting under sfas 155 for certain hybrid financial assets and liabilities performance linked to risks other than interest rate  foreign exchange or inflation ( e.  equity  credit or commodity risks ).
 company elected fair-value accounting under sfas 155 for residual interests retained from securitizing certain financial assets.
 fair-value accounting for these exposures are considered trading-related positions managed on fair-value basis.
 accounting for instruments simplified under fair-value approach eliminates complicated operational requirements of bifurcating embedded derivatives from host contracts accounting for each separately.
 hybrid financial instruments classified as trading account assets , loans , deposits  trading account liabilities ( for prepaid derivatives ) short-term borrowings or long-term debt on company 2019s consolidated balance sheet residual interests in certain securitizations are classified as trading account assets.
 for hybrid financial instruments for which fair-value accounting elected under sfas 155 classified as long-term debt  aggregate unpaid principal exceeds aggregate fair value by $ 1. 9 billion as of december 31 , 2008 aggregate fair value exceeds aggregate unpaid principal balance by $ 460 million as of december 31 , 2007.
 difference for those instruments classified as loans is immaterial.
 changes in fair value for hybrid financial instruments  includes component for accrued interest recorded in principal transactions in company 2019s consolidated statement of income.
 interest accruals for certain hybrid instruments classified as trading assets recorded separately from change in fair value as interest revenue in company 2019s consolidated statement of income.
mortgage servicing rights company accounts for mortgage servicing rights ( msrs ) at fair value in accordance with sfas 156.
 fair value for msrs determined using option-adjusted spread valuation approach.
 approach projecting servicing cash flows under multiple interest-rate scenarios discounting cash flows using risk-adjusted rates.
 model assumptions in valuation msrs include mortgage prepayment speeds discount rates.
 fair value msrs affected by changes in prepayments from shifts in mortgage interest rates.
 managing risk company hedges portion values msrs through interest-rate derivative contracts forward- purchase commitments of mortgage-backed securities purchased securities classified as trading.
 see note 23 on page 175 for discussions accounting reporting of msrs.
 these msrs  totaled $ 5. 7 billion and $ 8. 4 billion as of december 31 , 2008 and december 31 , 2007  classified as mortgage servicing rights on citigroup 2019s consolidated balance sheet.
 changes in fair value of msrs recorded in commissions and fees in company 2019s consolidated statement of income.

in millions of dollars                                                                                | december 31 2008 | december 31 2007
------------------------------------------------------------------------------------------------------------------- | ---------------- | ----------------
carrying amount reported on the consolidated balance sheet                                                          | $ 4273           | $ 6392
aggregate fair value in excess of unpaid principal balance                                                          | $ 138            | $ 136
balance on non-accrual loans or loans more than 90 days past due                                                    | $ 9              | $ 17
aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days pastdue | $ 2              | $ 2014


management 2019s discussion analysis scenario analyses.
 conduct scenario analyses including comprehensive capital analysis and review ( ccar ) dodd-frank act stress tests ( dfast ) resolution recovery planning.
 see 201cequity capital management and regulatory capital 2014 equity capital management 201d below for further information.
 scenarios cover short-term long- term time horizons using various macroeconomic firm- specific assumptions  based on range of economic scenarios.
 use analyses to assist developing longer-term balance sheet management strategy  including level composition of assets , funding equity capital.
 analyses help develop approaches for maintaining appropriate funding, liquidity capital across variety of situations including severely stressed environment.
 balance sheet allocation preparing consolidated statements of financial condition in accordance with u. s.
 gaap  prepare balance sheet generally allocates assets to businesses  non-gaap presentation may not comparable to similar non-gaap presentations other companies.
 believe presenting our assets on this basis meaningful consistent with management views manages risks associated with firm 2019s assets better enables investors to assess liquidity of firm 2019s assets.
 table below presents our balance sheet allocation.
 1.
 includes $ 18. 24 billion and $ 15. 76 billion as of december 2014 and december 2013  of direct loans primarily extended to corporate and private wealth management clients accounted for at fair value.
 2.
 see note 9 to consolidated financial statements for further information about loans receivable.
 below description of captions in table above.
 2030 global core liquid assets and cash.
 maintain substantial liquidity to meet broad range of potential cash outflows collateral needs in stressed environment.
 see 201cliquidity risk management 201d below for details on composition sizing of our 201cglobal core liquid assets 201d ( gcla ) , previously global core excess ( gce ).
in addition to our gcla we maintain other operating cash balances primarily for use in specific currencies, entities or jurisdictions where not immediate access to parent company liquidity.
 2030 secured client financing.
 we provide collateralized financing for client positions including margin loans secured by client collateral securities borrowed  resale agreements primarily collateralized by government obligations.
 client activities we required to segregate cash and securities to satisfy regulatory requirements.
 our secured client financing arrangements  generally short-term accounted for at fair value or approximate fair value include daily margin requirements to mitigate counterparty credit risk.
 2030 institutional client services.
 maintain inventory positions to facilitate market-making in fixed income  equity currency commodity products.
 market- making activities enter into resale or securities borrowing arrangements to obtain securities to cover transactions in we or clients sold securities not yet purchased.
 receivables in institutional client services primarily relate to securities transactions.
 2030 investing & lending.
 in investing we make investments and originate loans to provide financing to clients.
 these investments and loans are typically longer- term in.
 make investments directly indirectly through funds manage in debt securities , loans  public and private equity securities  real estate entities other investments.
 2030 other assets.
 assets generally less liquid  non- financial assets  including property  leasehold improvements and equipment  goodwill identifiable intangible assets  income tax-related receivables  equity- method investments assets classified as held for sale miscellaneous receivables.
 goldman sachs 2014 annual report 49

$ in millions                      | as of december 2014 | as of december 2013
---------------------------------- | ------------------- | -------------------
global core liquid assets ( gcla ) | $ 182947            | $ 184070
other cash                         | 7805                | 5793
gcla and cash                      | 190752              | 189863
secured client financing           | 210641              | 263386
inventory                          | 230667              | 255534
secured financing agreements       | 74767               | 79635
receivables                        | 47317               | 39557
institutional client services      | 352751              | 374726
public equity                      | 4041                | 4308
private equity                     | 17979               | 16236
debt1                              | 24768               | 23274
loans receivable2                  | 28938               | 14895
other                              | 3771                | 2310
investing & lending                | 79497               | 61023
total inventory and related assets | 432248              | 435749
other assets                       | 22599               | 22509
total assets                       | $ 856240            | $ 911507


item 7a.
 quantitative and qualitative disclosures about market risk ( amounts in millions ) normal course business exposed to market risks related to interest rates foreign currency rates certain balance sheet items.
 use derivative instruments established guidelines policies to manage these risks.
 derivative instruments in hedging activities viewed as risk management tools not used for trading or speculative purposes.
 interest rates exposure to market risk for changes in interest rates relates primarily to fair market value cash flows of debt obligations.
 majority of debt ( approximately 86% ( 86 % ) and 94% ( 94 % ) as of december 31, 2018 and 2017 ) bears interest at fixed rates.
 have debt with variable interest rates 10% ( 10 % ) increase or decrease in interest rates not material to interest expense or cash flows.
 fair market value of debt sensitive to changes in interest rates impact of 10% ( 10 % ) change in interest rates summarized below.
 increase/ ( decrease ) in fair market value as of december 31  10% ( 10 % ) increase in interest rates 10 % ) decrease in interest rates.
 used interest rate swaps for risk management purposes to manage exposure to changes in interest rates.
 any interest rate swaps outstanding as of december 31 , 2018.
 had $ 673. 5 of cash , cash equivalents marketable securities as of december 31, 2018 generally invest in conservative  short-term bank deposits or securities.
 interest income from investments subject to domestic and foreign interest rate movements.
 during 2018 and 2017  had interest income of $ 21. 8 and $ 19. 4 , respectively.
 based on 2018 results 100 basis-point increase or decrease in interest rates would affect interest income by approximately $ 6. 7  assuming all cash cash equivalents marketable securities impacted same balances remain constant from year-end 2018 levels.
foreign currency rates subject to translation and transaction risks related to changes in foreign currency exchange rates.
 we report revenues and expenses in.
 dollars changes in exchange rates may positively or negatively affect our consolidated revenues and expenses ( expressed in.
 dollars ) from foreign operations.
 foreign currencies most favorably impacted our results during year ended december 31 , 2018 were euro british pound sterling.
 foreign currencies most adversely impacted results year ended december 31 2018 were argentine peso brazilian real.
 based on 2018 exchange rates operating results if.
 dollar strengthen or weaken by 10% ( 10 % ), estimate operating income would decrease or increase approximately 4% ( 4 % ) assuming all currencies impacted same manner international revenue and expenses remain constant at 2018 levels.
 functional currency of foreign operations is generally their respective local currency.
 assets and liabilities translated at exchange rates in effect at balance sheet date revenues and expenses translated at average exchange rates during period presented.
 resulting translation adjustments recorded as component of accumulated other comprehensive loss , net of tax  in stockholders 2019 equity section of consolidated balance sheets.
 foreign subsidiaries generally collect revenues and pay expenses in their functional currency  mitigating transaction risk.
 certain subsidiaries may enter into transactions in currencies other than functional currency.
 assets and liabilities denominated in currencies other than functional currency susceptible to movements in foreign currency until final settlement.
 currency transaction gains or losses arising from transactions in currencies other than functional currency included in office and general expenses.
 regularly review foreign exchange exposures may have material impact on business use foreign currency forward exchange contracts

as of december 31, | increase/ ( decrease ) in fair market value 10% ( 10 % ) increasein interest rates | increase/ ( decrease ) in fair market value 10% ( 10 % ) decreasein interest rates
------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
2018               | $ -91.3 ( 91.3 )                                                                   | $ 82.5
2017               | -20.2 ( 20.2 )                                                                     | 20.6


incremental contract start-up costs 2014large municipal contract.
 during 2018 and 2017  incurred costs of $ 5. 7 million and $ 8. 2 million  respectively related to implementation large municipal contract.
 costs did not meet capitalization criteria by new revenue recognition standard.
 adoption of tax act.
 tax act enacted december 22 , 2017.
 tax act reduced.
 federal corporate tax rate from 35% ( 35 % ) to 21% ( 21 % ).
 for year ended december 31 , 2017 recorded provisional amounts based on estimates of tax act 2019s effect to deferred taxes , uncertain tax positions  one-time transition tax.
 adjustments reduced tax provision by $ 463. 9 million.
 during 2018  adjusted provisional amounts recorded as of december 31 , 2017 for one-time transition tax , deferred taxes uncertain tax positions.
 adjustments increased tax provision by $ 0. 3 million.
 bridgeton insurance recovery  net.
 during 2018 collected insurance recovery of $ 40. 0 million related to closed bridgeton landfill in missouri recognized as reduction of remediation expenses in cost of operations.
 incurred $ 12. 0 million of incremental costs attributable to bridgeton insurance recovery.
 recent developments 2019 financial guidance 2019 continue to focus on managing controllable aspects business by enhancing quality of revenue investing in profitable growth opportunities reducing costs.
 team focused on executing strategy to deliver consistent earnings and free cash flow growth improve return on invested capital.
 committed to efficient capital structure  maintaining investment grade credit ratings increasing cash returned to shareholders.
 guidance based on current economic conditions does not assume significant changes in overall economy in 2019.
 specific guidance revenue expect 2019 revenue to increase by approximately 4. 25 to 4. 75% ( 4.75 % ) comprised of following : increase ( decrease ).
 changes in price restricted on approximately 50% ( 50 % ) of our annual service revenue.
 majority of restricted pricing arrangements tied to fluctuations in specific index ( primarily consumer price index ) as defined in contract.
 consumer price index varies from single historical stated period of time or average of trailing historical rates over stated period time.
 initial effect of pricing resets typically lags 6 to 12 months from end of index measurement period to date revised pricing goes into effect.
, current changes in specific index may not manifest in reported pricing for several quarters into future.

| increase ( decrease )
---------------------------------------- | ------------------------
average yield                            | 2.75% ( 2.75 % )
volume                                   | 0.0 to 0.25
energy services                          | 2013
fuel recovery fees                       | 0.25
recycling processing and commodity sales | 0.25 to 0.5
acquisitions / divestitures net          | 1.0
total change                             | 4.25 to 4.75% ( 4.75 % )


regular our special asset committee monitors loans primarily commercial loans not included in nonperforming or accruing past due categories for uncertain about borrower 2019s ability to comply with existing repayment terms.
 these loans totaled $. 2 billion at december 31 , 2014 and december 31 , 2013.
 home equity loan portfolio loan portfolio totaled $ 34. 7 billion as of december 31 , 2014 or 17% ( 17 % ) of total loan portfolio.
 total  $ 20. 4 billion , or 59% ( 59 % ), outstanding under primarily variable-rate home equity lines of credit $ 14. 3 billion , or 41% ( 41 % ) , consisted of closed-end home equity installment loans.
 approximately 3% ( 3 % ) of home equity portfolio was on nonperforming status as of december 31 , 2014.
 of december 31  2014 we in originated first lien position for approximately 51% ( 51 % ) of total portfolio where originated as second lien  we hold or service first lien position for approximately additional 2% ( 2 % ) of portfolio.
 remaining 47% ( 47 % ) of portfolio secured by second liens where do not hold first lien position.
 credit performance of majority of home equity portfolio where we in hold or service first lien position  superior to portion portfolio where hold second lien position but not hold first lien.
 lien position information generally based upon original ltv at time of origination.
 after origination pnc not typically notified when senior lien position not held by pnc satisfied.
 information about current lien status of junior lien loans less readily available in cases where pnc not hold senior lien.
 pnc not typically notified when junior lien position added after origination of pnc first lien.
updated information for junior and senior liens must be obtained from external sources  pnc contracted with industry-leading third-party service provider to obtain updated loan , lien and collateral data aggregated from public and private sources.
 we track borrower performance monthly including obtaining original ltvs , updated fico scores quarterly , updated ltvs semi-annually  and other credit metrics quarterly  including historical performance of any mortgage loans regardless of lien position we or not hold.
 this information is used for internal reporting and risk management.
 for internal reporting risk management we segment population into pools based on product type (. home equity loans , brokered home equity loans  home equity lines of credit  brokered home equity lines of credit ).
 of risk analysis monitoring we segment home equity portfolio based upon delinquency , modification status and bankruptcy status of these loans  delinquency  modification status bankruptcy status of any mortgage loan with same borrower ( regardless of first lien senior to second lien ).
 in establishing our alll for non-impaired loans  we utilize delinquency roll-rate methodology for pools of loans.
 methodology we establish allowance based upon incurred losses , not lifetime expected losses.
 roll-rate methodology estimates transition/roll of loan balances from one delinquency state. 30-59 days past due ) to another delinquency state. 60-89 days past due ) and to charge-off.
 roll through to charge-off is based on pnc 2019s actual loss experience for each type of pool.
 each our home equity pools contains both first and second liens.
experience ratio of first to second lien loans consistent over time charge-off amounts for pools establish allowance include losses on both first and second liens loans.
 our variable-rate home equity lines of credit have seven or ten year draw period followed by 20-year amortization term.
 during draw period home equity lines of credit where borrowers pay interest or principal and interest.
 view home equity lines of credit where borrowers paying principal and interest under draw period as less risky than paying interest only borrowers have demonstrated ability to make level principal and interest payments.
 risk associated with borrower 2019s ability to satisfy loan terms upon draw period ending considered in establishing alll.
 based upon outstanding balances at december 31 , 2014  table presents periods when home equity lines of credit draw periods scheduled to end.
 table 36 : home equity lines of credit 2013 draw period end in millions interest only product principal and interest product.
 ( a ) includes all home equity lines of credit mature in 2015 or later including those with borrowers terminated borrowing privileges.
 ( b ) includes approximately $ 154 million , $ 48 million , $ 57 million, $ 42 million and $ 564 million of home equity lines of credit with balloon payments including those terminated borrowing privileges with draw periods scheduled to end in 2015 , 2016 , 2017 , 2018 and 2019.
 76 pnc financial services group , inc.
 2013 form 10-k

in millions         | interest onlyproduct | principal andinterest product
------------------- | -------------------- | -----------------------------
2015                | $ 1597               | $ 541
2016                | 1366                 | 437
2017                | 2434                 | 596
2018                | 1072                 | 813
2019 and thereafter | 3880                 | 5391
total ( a ) ( b )   | $ 10349              | $ 7778


notes to consolidated financial statements union pacific corporation subsidiary companies for this report  unless context otherwise requires references to 201ccorporation 201d , 201cupc 201d , 201cwe 201d , 201cus 201d  201cour 201d mean union pacific corporation and subsidiaries  including union pacific railroad company , separately referred to as 201cuprr 201d or 201crailroad 201d.
 1.
 nature of operations operations segmentation 2013 we are class i railroad operating in u. s.
 network includes 31868 route miles  linking pacific coast gulf coast ports with midwest eastern u. s.
 gateways providing several corridors to key mexican gateways.
 own 26020 miles operate on remainder to trackage rights or leases.
 serve western two-thirds of country maintain coordinated schedules with other rail carriers for handling of freight to from atlantic coast , pacific coast  southeast, southwest , canada  mexico.
 export and import traffic moved through gulf coast pacific coast ports across mexican and canadian borders.
 railroad , with subsidiaries rail affiliates is our one reportable operating segment.
 provide review revenue by commodity group analyze net financial results of railroad as one segment due to integrated nature of rail network.
 following table provides freight revenue by commodity group : millions 2012 2011 2010.
 revenues principally derived from customers domiciled in u. s. , ultimate points of origination or destination for some products transported outside u. s.
 each commodity groups includes revenue from shipments to and from mexico.
 included in table revenues from mexico business amounted to $ 1. 9 billion in 2012 , $ 1. 8 billion in 2011 , $ 1. 6 billion in 2010.
basis presentation 2013 consolidated financial statements presented in accordance with accounting principles accepted.
 codified in financial accounting standards board ( fasb ) accounting standards codification ( asc ).
.
 significant accounting policies principles of consolidation 2013 consolidated financial statements include accounts of union pacific corporation subsidiaries.
 investments in affiliated companies ( 20% 20 % ) to 50% ( 50 % ) owned ) accounted for using equity method accounting.
 intercompany transactions eliminated.
 no less than majority-owned investments require consolidation under variable interest entity requirements.
 cash and cash equivalents 2013 cash equivalents consist of investments with original maturities of three months or less.
 accounts receivable 2013 includes receivables reduced by allowance for doubtful accounts.
 allowance based upon historical losses credit worthiness customers current economic conditions.
 receivables not expected to be collected in one year associated allowances classified as other assets in consolidated statements of financial position.

millions                | 2012    | 2011    | 2010
----------------------- | ------- | ------- | -------
agricultural            | $ 3280  | $ 3324  | $ 3018
automotive              | 1807    | 1510    | 1271
chemicals               | 3238    | 2815    | 2425
coal                    | 3912    | 4084    | 3489
industrial products     | 3494    | 3166    | 2639
intermodal              | 3955    | 3609    | 3227
total freight revenues  | $ 19686 | $ 18508 | $ 16069
other revenues          | 1240    | 1049    | 896
total operatingrevenues | $ 20926 | $ 19557 | $ 16965


management 2019s discussion and analysis j. p.
 morgan chase & co.
 26 j.
 morgan chase co.
 / 2003 annual report $ 41. 7 billion.
 reduced by lower volume of commercial loans lower spreads on investment securities.
 trading-related net interest income of $ 2. 1 billion up 13% ( 13 % ) from 2002 due to change in composition of growth in trading assets.
 firm 2019s total average interest-earning assets in 2003 were $ 590 billion  up 6% ( 6 % ) from prior year.
 net interest yield on these assets fully taxable-equivalent basis was 2. 10% ( 2. 10 % ) compared with 2. 09% ( 2. 09 % ) in prior year.
 noninterest expense year ended december 31.
 technology and communications expense in 2003 was 11% ( 11 % ) above prior-year level.
 increase primarily due to shift in expenses : costs previously associated with compensation and other expenses shifted ibm outsourcing agreement to technology and communications expense.
 contributing to increase were higher costs related to software amortization.
 for further dis- cussion of ibm outsourcing agreement  see support units and corporate on page 44 of annual report.
 other expense expense in 2003 rose slightly from prior year reflecting higher outside services.
 for table showing components of other expense see note 8 on page 96 of annual report.
 surety settlement and litigation reserve firm added $ 100 million to enron-related litigation reserve in 2003 to supplement $ 900 million reserve initially recorded in 2002.
 2002 reserve established to cover enron-related matters  certain other material litigation  proceedings investigations in firm involved.
 in 2002 firm recorded charge of $ 400 million for settlement of enron-related surety litigation.
merger restructuring costs costs related to business restructurings announced after january 1 , 2002 recorded in relevant expense categories.
 in 2002  merger restructuring costs of $ 1. 2 billion  for programs announced prior to january 1 2002 viewed by management as nonoperating expenses 201cspecial items. refer to note 8 on pages 95 201396 annual report for further discussion of merger restructuring costs summary by expense category business segment of costs incurred in 2003 and 2002 for programs announced after january 1 , 2002.
 provision for credit losses 2003 provision for credit losses was $ 2. 8 billion lower than 2002 reflecting improvement in quality of commercial loan portfolio higher volume of credit card securitizations.
 further information about provision for credit losses firm 2019s management of credit risk see dis- cussions of net charge-offs with commercial consumer loan portfolios allowance for credit losses on pages 63 201365 of annual report.
 income tax expense income tax expense was $ 3. 3 billion in 2003 compared with $ 856 million in 2002.
 effective tax rate in 2003 was 33% ( 33 % ) compared with 34% ( 34 % ) in 2002.
 tax rate decline attributable to changes in proportion of income subject to state and local taxes.
 compensation expense expense in 2003 was 6% ( 6 % ) higher than prior year.
 increase reflected higher performance-related incentives higher pension postretirement benefit costs result of changes in actuarial assumptions.
 detailed discussion of pension postretirement benefit costs see note 6 on pages 89 201393 of annual report.
 increase to incentives included $ 266 million of adopting sfas 123  $ 120 million from reversal in 2002 of previously accrued expenses for certain forfeitable key employ- ee stock awards discussed in note 7 on pages 93 201395 of annual report.
 total compensation expense declined transfer  beginning april 1 , 2003  of 2800 employees to ibm with technology outsourcing agreement.
 total full-time equivalent employees at december 31 , 2003 was 93453 compared with 94335 prior year-end.
 occupancy expense of $ 1. 9 billion rose 19% ( 19 % ) from 2002.
 increase reflected costs of additional leased space in midtown manhattan south and southwest regions united states ; higher real estate taxes in new york city cost of enhanced safety measures.
 contributing to increase were charges for unoccupied excess real estate of $ 270 million ; compared with $ 120 million in 2002  mostly in third quarter year.

( in millions )                          | 2003    | 2002    | change
---------------------------------------- | ------- | ------- | --------------
compensation expense                     | $ 11695 | $ 10983 | 6% ( 6 % )
occupancy expense                        | 1912    | 1606    | 19
technology and communications expense    | 2844    | 2554    | 11
other expense                            | 5137    | 5111    | 1
surety settlement and litigation reserve | 100     | 1300    | -92 ( 92 )
merger and restructuring costs           | 2014    | 1210    | nm
total noninterest expense                | $ 21688 | $ 22764 | ( 5 ) % (  % )


part iii item 10.
 directors  executive officers corporate governance information required by item 10  other than information executive officers at end of item 1 report  see 201celection of directors , 201d 201cnominees for election to board of directors , 201d 201ccorporate governance 201d 201csection 16 ( a ) beneficial ownership reporting compliance , 201d proxy statement for 2015 annual meeting  information incorporated herein by reference.
 proxy statement 2015 annual meeting filed within 120 days of close of fiscal year.
 information required by item 10 executive officers  see part i of report pages 11 - 12.
 item 11.
 executive compensation information required item 11 see 201cexecutive compensation, 201d 201ccompensation committee report on executive compensation 201d 201ccompensation committee interlocks insider participation 201d proxy statement for 2015 annual meeting  information incorporated by reference.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters information required by item 12 beneficial ownership of common stock, see 201csecurity ownership of certain beneficial owners management 201d proxy statement for 2015 annual meeting  information incorporated herein by reference.
 following table sets information as of december 31 , 2014 equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants rights weighted-average exercise price of outstanding options , warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1233672 $ 75. 93 4903018 item 13.
certain relationships related transactions , director independence for information required by item 13 , see 201ccertain transactions 201d and 201ccorporate governance 201d in proxy statement for 2015 annual meeting  information incorporated herein by reference.
 item 14.
 principal accounting fees services information required item 14 see 201caudit and non-audit fees 201d and 201cpolicy on audit committee pre- approval of audit non-audit services of independent registered public accounting firm 201d in proxy statement for 2015 annual meeting , information incorporated herein by reference.
 part iii item 10.
 directors , executive officers corporate governance for information required by item 10 other information executive officers end of item 1 report, see 201celection of directors, 201d 201cnominees for election to board of directors , 201d 201ccorporate governance 201d 201csection 16 ( a ) beneficial ownership reporting compliance , 201d proxy statement for 2015 annual meeting , information incorporated herein by reference.
 proxy statement for 2015 annual meeting filed within 120 days of close of fiscal year.
 for information required by item 10 executive officers , see part i of report on pages 11 - 12.
 item 11.
 executive compensation for information required item 11 see 201cexecutive compensation , 201d 201ccompensation committee report on executive compensation 201d and 201ccompensation committee interlocks insider participation 201d proxy statement for 2015 annual meeting , information incorporated herein by reference.
 item 12.
 security ownership of certain beneficial owners management related stockholder matters for information required by item 12 beneficial ownership of common stock , see 201csecurity ownership of certain beneficial owners management 201d in proxy statement for 2015 annual meeting  information incorporated herein by reference.
table sets information as of december 31 , 2014 regarding equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants rights weighted-average exercise price of options  warrants rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1233672 $ 75. 93 4903018 item 13.
 certain relationships related transactions  director independence for information item 13 see 201ccertain transactions 201d and 201ccorporate governance 201d in proxy statement for 2015 annual meeting  information reference.
 item 14.
 principal accounting fees services for information 14 see 201caudit and non-audit fees 201d and 201cpolicy on audit committee pre- approval of audit non-audit services of independent registered public accounting firm 201d in proxy statement for 2015 annual meeting  information reference.

plan category                                          | number of securitiesto be issued uponexercise ofoutstanding options warrants and rights ( a ) ( b ) | weighted-averageexercise price ofoutstanding options warrants and rights | number of securitiesremaining available forfuture issuance underequity compensationplans ( excludingsecurities reflected in column ( a ) ) ( c )
------------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 1233672                                                                                | $ 75.93                                                                  | 4903018


2022 net derivative losses of $ 13 million.
 review by segment general we serve clients through following segments : 2022 risk solutions acts as advisor and insurance and reinsurance broker , helping clients manage risks  via consultation , negotiation and placement of insurance risk with insurance carriers through global distribution network.
 2022 hr solutions partners with organizations to solve complex benefits , talent related financial challenges improve business performance by designing , implementing  communicating administering human capital , retirement , investment management  health care  compensation talent management strategies.
 risk solutions.
 demand for property and casualty insurance rises as economic activity increases falls as activity decreases , affecting commissions and fees generated by our brokerage business.
 economic activity impacts property and casualty insurance described as exposure units  closely correlated with employment levels , corporate revenue asset values.
 during 2011 began to see improvement in pricing ; still consider to 2018 2018soft market , 2019 2019 began in 2007.
 in soft market , premium rates flatten or decrease  along with commission revenues , due to increased competition for market share among insurance carriers or increased underwriting capacity.
 changes in premiums direct potentially material impact on insurance brokerage industry , commission revenues based on percentage of premiums paid by insureds.
 in 2011 , pricing showed stabilization improvement in retail and reinsurance brokerage product lines expect trend to slowly continue into 2012.
 additionally  beginning in late 2008 continuing through 2011  faced difficult conditions result of unprecedented disruptions in global economy , repricing of credit risk deterioration of financial markets.
 weak global economic conditions reduced customers 2019 demand for our brokerage products  negative impact on operational results.
 risk solutions generated approximately 60% ( 60 % ) of consolidated total revenues in 2011.
revenues generated primarily through fees paid by clients , commissions and fees paid by insurance and reinsurance companies  investment income on funds held on behalf of clients.
 revenues vary from quarter to quarter year result of timing of clients 2019 policy renewals , net effect of new and lost business  timing of services provided to clients income earn on investments , influenced by short-term interest rates.
 we operate in competitive industry compete with many retail insurance brokerage and agency firms with individual brokers , agents  direct writers of insurance coverage.
 we address specialized product development and risk management needs of commercial enterprises , professional groups , insurance companies  governments  health care providers  non-profit groups , among others ; provide affinity products for professional liability , life , disability

years ended december 31, | 2011             | 2010             | 2009
------------------------ | ---------------- | ---------------- | ----------------
revenue                  | $ 6817           | $ 6423           | $ 6305
operating income         | 1314             | 1194             | 900
operating margin         | 19.3% ( 19.3 % ) | 18.6% ( 18.6 % ) | 14.3% ( 14.3 % )


goldman sachs group , inc.
 subsidiaries management 2019s discussion analysis net revenues table below presents net revenues by line item.
 2030 investment banking consists of revenues ( excluding net interest ) from financial advisory underwriting assignments derivative transactions related to these assignments.
 these activities included in our investment banking segment.
 2030 investment management of revenues excluding net interest ) from providing investment management services to diverse clients wealth advisory services certain transaction services to high-net-worth individuals families.
 activities included in investment management segment.
 2030 commissions and fees revenues from executing clearing client transactions on major stock  options futures exchanges worldwide over-the-counter ( otc ) transactions.
 these activities included in institutional client services and investment management segments.
 2030 market making of revenues ( excluding net interest ) from client execution activities related to making markets in interest rate products  credit products  mortgages currencies commodities equity products.
 activities included in institutional client services segment.
 2030 other principal transactions of revenues ( excluding net interest ) from investing activities origination of loans to provide financing to clients.
 other principal transactions includes revenues related to consolidated investments.
 activities included in investing & lending segment.
 provision for credit losses  previously reported in other principal transactions revenues now reported as separate line item in consolidated statements of earnings.
 previously reported amounts conformed to current presentation.
 operating environment.
 during 2018  market- making activities reflected higher levels of volatility improved client activity compared with low volatility environment in 2017.
 in investment banking  industry-wide mergers and acquisitions volumes increased compared with 2017 industry-wide underwriting transactions decreased.
principal transactions revenues benefited from company-specific events including sales strong corporate performance investments in public equities reflected losses as global equity prices decreased in 2018  particularly end of year.
 in investment management  assets under supervision increased reflecting net inflows in liquidity products fixed income assets equity assets partially offset by depreciation in client assets primarily in equity assets.
 if market-making or investment banking activity levels decline assets under supervision decline asset prices decline net revenues likely negatively impacted.
 see 201csegment operating results 201d for further information about operating environment material trends uncertainties impact results of operations.
 during 2017  higher asset prices tighter credit spreads supportive of industry-wide underwriting activities investment management performance other principal transactions.
 low levels volatility in equity  fixed income currency commodity markets negatively affect market-making activities.
 2018 versus 2017 net revenues in consolidated statements of earnings were $ 36. 62 billion for 2018 , 12% ( 12 % ) higher than 2017  primarily due to higher market making revenues net interest income higher investment management revenues investment banking revenues.
 non-interest revenues.
 investment banking revenues in earnings were $ 7. 86 billion for 2018 , 7% ( 7 % ) higher than 2017.
 revenues in financial advisory were higher  reflecting increase in industry-wide completed mergers and acquisitions volumes.
 revenues in underwriting slightly higher due to higher revenues in equity underwriting  driven by initial public offerings offset by lower revenues in debt underwriting  decline in leveraged finance activity.
 investment management revenues in were $ 6. 51 billion for 2018 , 12% ( 12 % ) higher than 2017  primarily due to higher incentive fees  result of harvesting.
management fees higher reflecting higher average assets supervision impact of recently adopted revenue recognition standard offset by shifts in mix client assets strategies.
 see note 3 to consolidated financial statements for information about asu no.
 2014-09 , 201crevenue from contracts with customers ( topic 606 ). 201d 52 goldman sachs 2018 form 10-k

$ in millions                | year ended december 2018 | year ended december 2017 | year ended december 2016
---------------------------- | ------------------------ | ------------------------ | ------------------------
investment banking           | $ 7862                   | $ 7371                   | $ 6273
investment management        | 6514                     | 5803                     | 5407
commissions and fees         | 3199                     | 3051                     | 3208
market making                | 9451                     | 7660                     | 9933
other principal transactions | 5823                     | 5913                     | 3382
totalnon-interestrevenues    | 32849                    | 29798                    | 28203
interest income              | 19679                    | 13113                    | 9691
interest expense             | 15912                    | 10181                    | 7104
net interest income          | 3767                     | 2932                     | 2587
total net revenues           | $ 36616                  | $ 32730                  | $ 30790


discount rate 2014the assumed discount rate used to determine current retirement related benefit plan expense and obligations represents interest rate used to determine present value of future cash flows expected to required to settle plan 2019s benefit obligations.
 discount rate assumption determined for each plan by constructing portfolio of high quality bonds with cash flows match estimated outflows for future benefit payments to determine single equivalent discount rate.
 benefit payments not only contingent on terms of plan also on underlying participant demographics including current age  assumed mortality.
 use only bonds denominated in u. s.
 dollars  rated aa or better by two of three nationally recognized statistical rating agencies minimum outstanding issue of $ 50 million as of measurement date not callable , convertible , or index linked.
 bond yields unavailable beyond 30 years assume rates will remain constant beyond that point.
 weighted average discount rate for pensions was 5. 23% ( 5. 23 % ) and 5. 84% ( 5. 84 % )  as of december 31 , 2011 and 2010 .
 weighted average discount rate for other postretirement benefits was 4. 94% ( 4. 94 % ) and 5. 58% ( 5. 58 % ) as of december 31 , 2011 and 2010 .
 expected long-term rate of return 2014the expected long-term rate of return on assets used to calculate net periodic expense based on factors historical returns , targeted asset allocations , investment policy  duration  expected future long-term performance of individual asset classes inflation trends  portfolio volatility  risk management strategies.
 studies understanding current trends performance assumption based more on longer term and prospective views.
 to reflect expected lower future market returns reduced expected long-term rate of return assumption from 8. 50% ( 8.50 % )  to record 2011 expense  to 8. 00% ( 8. 00 % ) for 2012.
 decrease in expected return on assets assumption related to lower bond yields updated return assumptions for equities.
 unless plan assets and benefit obligations subject to remeasurement during year expected return on pension assets based on fair value of plan assets at beginning of year.
 increase or decrease of 25 basis points in discount rate and expected long-term rate of return assumptions approximate impacts on pensions : ( $ in millions ) increase ( decrease ) in 2012 expense increase ( decrease ) in december 31, 2011 obligations.
 differences from actual experience or changes in assumptions might affect retirement related benefit plan obligations and funded status.
 actuarial gains and losses from differences from actual experience or changes in assumptions deferred in accumulated other comprehensive income.
 unrecognized amount amortized to extent exceeds 10% ( 10 % ) of greater of plan 2019s benefit obligation or plan assets.
 amortization period for actuarial gains and losses is estimated average remaining service life of plan participants approximately 10 years.
 cas expense 2014in providing methodology for calculating retirement related benefit plan costs cas prescribes method for assigning costs to specific periods.
 ultimate liability for such costs under fas and cas similar pattern of cost recognition different.
 key drivers of cas pension expense include funded status method to calculate cas reimbursement for each plans expected long-term rate of return on assets assumption.
 unlike fas  cas requires discount rate to be consistent with expected long-term rate of return on assets assumption changes infrequently long-term nature.
 changes in bond or other interest rates do not impact cas.
 unlike under fas can only allocate pension costs for plan under cas until plan is fully funded as determined under erisa requirements.
fas and cas considerations 2014we update estimates of future fas and cas costs annually based on factors calendar year actual plan asset returns  final census data from end prior year  other actual and projected experience.
 key driver of difference between fas and cas expense ( fas/cas adjustment ) is pattern of earnings and expense recognition for gains and losses when asset and liability experiences differ from assumptions under each set requirements.
 under fas , net gains and losses exceeding 10% ( 10 % ) corridor are amortized

( $ in millions )                                    | increase ( decrease ) in 2012 expense | increase ( decrease ) in december 31 2011 obligations
---------------------------------------------------- | ------------------------------------- | -----------------------------------------------------
25 basis point decrease in discount rate             | $ 18                                  | $ 146
25 basis point increase in discount rate             | -17 ( 17 )                            | -154 ( 154 )
25 basis point decrease in expected return on assets | 8                                     | n.a .
25 basis point increase in expected return on assets | -8 ( 8 )                              | n.a .


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 , 2007 in standard & poor 2019s 500 index , dow jones transportation average , and class b common stock.

| 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 80.20    | $ 86.42    | $ 112.60   | $ 116.97   | $ 121.46
standard & poor 2019s 500 index  | $ 100.00   | $ 63.00    | $ 79.67    | $ 91.68    | $ 93.61    | $ 108.59
dow jones transportation average | $ 100.00   | $ 78.58    | $ 93.19    | $ 118.14   | $ 118.15   | $ 127.07


ordinary course of business  based on evaluations of geologic trends prospective economics allowed certain lease acreage to expire may allow additional acreage to expire in future.
 if production not established or no other action to extend terms of leases , licenses  or concessions , undeveloped acreage listed in table below will expire over next three years.
 plan to continue terms of many licenses and concession areas or retain leases through operational or administrative actions.
 marketing and midstream e&p segment includes activities related to marketing transportation of all liquid hydrocarbon and natural gas production.
 activities include transportation of production to market centers  sale of commodities to third parties storage of production.
 balance sales , storage transportation positions through supply optimization  can include purchase of commodities from third parties for resale.
 supply optimization serves to aggregate volumes to satisfy transportation commitments achieve flexibility within product types delivery points.
 own and operate gathering systems other midstream assets in some production areas.
 continually evaluating value-added investments in midstream infrastructure or in capacity in third-party systems.
 delivery commitments committed to deliver quantities of crude oil and natural gas to customers under variety of contracts.
 as of december 31 , 2012 contracts for fixed and determinable amounts relate primarily to eagle ford liquid hydrocarbon production.
 minimum of 54 mbbld to be delivered at variable pricing through mid-2017 under two contracts.
 current production rates and proved reserves related to eagle ford shale sufficient to meet commitments contracts provide for monetary shortfall penalty or delivery of third-party volumes.
 oil sands mining segment we hold 20 percent non-operated interest in aosp , oil sands mining and upgrading joint venture located in alberta , canada.
joint venture produces bitumen from oil sands deposits in athabasca region mining techniques upgrades bitumen to synthetic crude oils vacuum gas oil.
 aosp 2019s mining and extraction assets near fort mcmurray  alberta include muskeg river jackpine mines.
 gross design capacity of combined mines is 255000 ( 51000 net interest ) barrels of bitumen per day.
 aosp base and expansion 1 scotford upgrader at fort saskatchewan northeast of edmonton , alberta.
 as of december 31, 2012 we own or rights to participate in developed and undeveloped leases totaling approximately 216000 gross ( 43000 net ) acres.
 underlying developed leases held for duration of project royalties payable to province of alberta.
 five year aosp expansion 1 completed in 2011.
 jackpine mine commenced production third quarter of 2010 began supplying oil sands ore to base processing facility in fourth quarter of 2010.
 upgrader expansion completed commenced operations second quarter of 2011.
 synthetic crude oil sales volumes for 2012 were 47 mbbld net of royalty production was 41 mbbld.
 phase one of debottlenecking opportunities approved in 2011 expected to be completed in second quarter of 2013.
 future expansions additional debottlenecking opportunities under review no formal approvals expected until 2014.
 current aosp operations use processes mine oil sands deposits from open-pit mine extract bitumen upgrade into synthetic crude oils.
 ore mined using traditional truck and shovel mining techniques.
 mined ore passes through primary crushers to reduce ore chunks size sent to rotary breakers ore chunks reduced to smaller particles.
 particles combined with hot water to create slurry.
 slurry moves through extraction

( in thousands )    | net undeveloped acres expiring 2013 | net undeveloped acres expiring 2014 | net undeveloped acres expiring 2015
------------------- | ----------------------------------- | ----------------------------------- | -----------------------------------
u.s .               | 436                                 | 189                                 | 130
canada              | 2014                                | 2014                                | 2014
total north america | 436                                 | 189                                 | 130
e.g .               | 2014                                | 36                                  | 2014
other africa        | 858                                 | 2014                                | 189
total africa        | 858                                 | 36                                  | 189
total europe        | 2014                                | 216                                 | 1155
other international | 2014                                | 2014                                | 49
worldwide           | 1294                                | 441                                 | 1523


entergy louisiana , llc subsidiaries management 2019s financial discussion analysis results of operations net income 2016 compared to 2015 net income increased $ 175. 4 million due to settlement with irs related to 2010-2011 irs audit  resulted in $ 136. 1 million reduction of income tax expense.
 contributing to increase were lower other operation maintenance expenses  higher net revenue higher other income.
 increase partially offset by higher depreciation amortization expenses higher interest expense  higher nuclear refueling outage expenses.
 2015 compared to 2014 net income increased slightly by $ 0. 6 million  due to higher net revenue lower effective income tax rate offset by higher other operation maintenance expenses higher depreciation amortization expenses lower other income higher interest expense.
 net revenue 2016 compared to 2015 consists of operating revenues net of 1 fuel  fuel-related expenses  gas purchased for resale 2 ) purchased power expenses 3 ) other regulatory charges.
 analysis of change in net revenue comparing 2016 to 2015.
 amount ( in millions ).
 retail electric price variance due to increase in formula rate plan revenues  implemented with first billing cycle of march 2016 collect estimated first-year revenue requirement related to purchase of power blocks 3 and 4 of union power station.
 see note 2 to financial statements for further discussion.
 transmission equalization variance due to changes in transmission investments including entergy louisiana 2019s exit from system agreement in august 2016.
 volume/weather variance due to effect of less favorable weather on residential sales partially offset by increase in industrial usage increase in volume during unbilled period.
 increase

| amount ( in millions )
--------------------------------------------- | ----------------------
2015 net revenue                              | $ 2408.8
retail electric price                         | 69.0
transmission equalization                     | -6.5 ( 6.5 )
volume/weather                                | -6.7 ( 6.7 )
louisiana act 55 financing savings obligation | -17.2 ( 17.2 )
other                                         | -9.0 ( 9.0 )
2016 net revenue                              | $ 2438.4