notes to consolidated financial statements jpmorgan chase & co. /2009 annual report 204 on interest income recognized in firm 2019s consolidated statements of income since date.
 ( b ) other changes in expected cash flows include net impact of changes in esti- mated prepayments and reclassifications to nonaccretable difference.
 quarterly basis  firm updates loan principal and interest cash flows expected to collected , incorporating assumptions regarding default rates , loss severities  amounts timing of prepayments other factors reflective of current market conditions.
 probable decreases in expected loan principal cash flows trigger recognition of impairment , measured as present value of expected principal loss plus related foregone interest cash flows discounted at pool 2019s effective interest rate.
 impairments after acquisition date recognized through provision and allow- ance for loan losses.
 probable significant increases in expected principal cash flows reverse previously recorded allowance for loan losses ; remaining increases recognized as interest income.
 impacts of i prepayments , ii changes in variable interest rates  iii ) other changes in timing of expected cash flows recognized prospectively as adjustments to interest income.
 disposals of loans , include sales of loans , receipt of payments in full by borrower  foreclosure , result in removal of loan from purchased credit-impaired portfolio.
 if timing and/or amounts of expected cash flows on these purchased credit-impaired loans not to rea- sonably estimable , no interest accreted loans reported as nonperforming loans ;  since timing and amounts of expected cash flows for these purchased credit-impaired loans are reasonably estimable , interest accreted loans reported as performing loans.
charge-offs not recorded on purchased credit-impaired loans until actual losses exceed estimated losses recorded as purchase accounting adjustments at acquisition date.
 to date  no charge-offs recorded for these loans.
 purchased credit-impaired loans acquired in washington mu- tual transaction reported in loans on firm 2019s consolidated balance sheets.
 in 2009  allowance for loan losses of $ 1. 6 billion recorded for prime mortgage and option arm pools of loans.
 net aggregate carrying amount of pools allowance for loan losses was $ 47. 2 billion at december 31, 2009.
 allowance for loan losses reported as reduction of carrying amount of loans in table below.
 table below provides additional information about pur- chased credit-impaired consumer loans.
 ( a ) represents sum of contractual principal , interest and fees earned at reporting date.
 purchased credit-impaired loans modified under mha programs and firm 2019s other loss mitigation programs.
 for impact of modification incorporated into firm 2019s quarterly assessment of probable signifi change in estimated future cash flows occurred loans continue to be accounted for as and reported as purchased credit-impaired loans.
 foreclosed property firm acquires property from borrowers through loan restructur- ings , workouts and foreclosures recorded in other assets on consolidated balance sheets.
 property acquired may include real property (. land  buildings fixtures ) and commercial and personal property (. aircraft railcars ships ).
 acquired property valued at fair value less costs to sell at acquisition.
 each quarter fair value of acquired property reviewed and adjusted if necessary.
adjustments to fair value in first 90 days charged to allowance for loan losses thereafter adjustments charged/credited to noninterest revenue 2013other.
 operating expense , such as real estate taxes and maintenance , charged to other expense.
 note 14 2013 allowance for credit losses allowance for loan losses includes asset-specific component , formula-based component component related to purchased credit-impaired loans.
 asset-specific component relates to loans considered to be impaired , includes loans modified in troubled debt restructuring risk-rated loans placed on nonaccrual status.
 asset-specific allowance for impaired loans established when loan 2019s discounted cash flows ( or available loan 2019s observable market price ) lower than recorded investment in loan.
 to compute asset-specific component of allowance  larger loans evaluated individually smaller loans evaluated as pools using historical loss experience for respective class of assets.
 risk-rated loans ( primarily wholesale loans ) pooled by risk rating , scored loans (. consumer loans ) pooled by product type.
 firm measures asset-specific allowance as difference between recorded investment in loan and present value of cash flows expected to be collected , dis- counted at loan 2019s original effective interest rate.
 subsequent changes in measured impairment due to impact of discounting reported as adjustment to provision for loan losses , not as adjustment to interest income.
 asset-specific allowance for impaired loan with observable market price measured as difference between recorded investment in loan and loan 2019s fair value.
 certain impaired loans determined to be collateral- dependent are charged-off to fair value of collateral less costs to sell.
collateral-dependent commercial real-estate loans determined to impaired , updated appraisals typi- cally obtained and updated every six to twelve months.
 firm considers borrower- and market-specific factors

december 31 ( in millions ) | 2009     | 2008
--------------------------- | -------- | --------
outstanding balance ( a )   | $ 103369 | $ 118180
carrying amount             | 79664    | 88813


table of contents performance graph not 201csoliciting material 201d not filed with sec  not to incorporated into valero 2019s filings under securities act of 1933 or securities exchange act of 1934 , as amended.
 performance graph and related textual information based on historical data not indicative of future performance.
 line graph compares cumulative total return 1 on investment in our common stock against cumulative total return of s&p 500 composite index and index of peer companies selected ) for five-year period commencing december 31, 2007 and ending december 31 , 2012.
 peer group consists of ten companies : alon usa energy  inc. bp plc ( bp ) ; cvr energy  inc. hess corporation ; hollyfrontier corporation marathon petroleum corporation phillips 66 ( psx ) royal dutch shell plc ( rds ) tesoro corporation western refining , inc.
 peer group previously included chevron corporation ( cvx ) and exxon mobil corporation ( xom ) but replaced with bp , psx  and rds.
 in 2012 psx became independent downstream energy company added to peer group.
 cvx and xom replaced with bp and rds operations closely aligned with core businesses.
 comparison of 5 year cumulative total return1 among valero energy corporation , s&p 500 index , old peer group  and new peer group.
 assumes investment in valero common stock and each index was $ 100 on december 31 , 2007.
 201ccumulative total return 201d based on share price appreciation plus reinvestment of dividends from december 31, 2007 through december 31 , 2012.

| 12/2007  | 12/2008 | 12/2009 | 12/2010 | 12/2011 | 12/2012
------------------- | -------- | ------- | ------- | ------- | ------- | -------
valero common stock | $ 100.00 | $ 31.45 | $ 25.09 | $ 35.01 | $ 32.26 | $ 53.61
s&p 500             | 100.00   | 63.00   | 79.67   | 91.67   | 93.61   | 108.59
old peer group      | 100.00   | 80.98   | 76.54   | 88.41   | 104.33  | 111.11
new peer group      | 100.00   | 66.27   | 86.87   | 72.84   | 74.70   | 76.89


third-party sales for engineered products and solutions segment improved 7% ( 7 % ) in 2016 compared with 2015 attributable to higher third-party sales of two acquired businesses ( $ 457 )  primarily related to aerospace end market  increased demand from industrial gas turbine end market offset by lower volumes in oil and gas end market commercial transportation end market pricing pressures in aerospace.
 third-party sales segment improved 27% ( 27 % ) in 2015 compared with 2014 attributable to third-party sales ( $ 1310 ) of three acquired businesses ( higher volumes in segment 2019s legacy businesses  primarily related to aerospace end market.
 positive impacts slightly offset by unfavorable foreign currency movements driven by weaker euro.
 atoi for engineered products and solutions segment increased $ 47 , or 8% ( 8 % ) , in 2016 compared with 2015  related to net productivity improvements across all businesses volume increase from rti acquisition and organic revenue growth offset by lower margin product mix pricing pressures in aerospace end market.
 atoi for this segment increased $ 16 , or 3% ( 3 % )  in 2015 compared with 2014 result of net productivity improvements businesses positive contribution from acquisitions higher volumes in segment 2019s legacy businesses.
 positive impacts partially offset by unfavorable price and product mix  higher costs related to growth projects  net unfavorable foreign currency movements related to weaker euro.
 in 2017  demand in commercial aerospace end market expected to remain strong driven by ramp up of new aerospace engine platforms somewhat offset by continued customer destocking engine ramp-up challenges.
 demand in defense end market expected to grow due to continuing ramp-up of certain aerospace programs.
net productivity improvements anticipated pricing pressure across all markets likely to continue.
 transportation and construction solutions.
 transportation construction solutions segment produces products used mostly in nonresidential building construction commercial transportation end markets.
 products include integrated aluminum structural systems , architectural extrusions  forged aluminum commercial vehicle wheels sold directly to customers and through distributors.
 small part segment also produces aluminum products for industrial products end market.
 sales costs expenses segment transacted in local currency of operations primarily u. s.
 dollar , euro  brazilian real.
 third-party sales for transportation and construction solutions segment decreased 4% ( 4 % ) in 2016 compared with 2015  primarily driven by lower demand from north american commercial transportation end market partially offset by rising demand from building and construction end market.
 third-party sales for segment decreased 7% ( 7 % ) in 2015 compared with 2014 primarily driven by unfavorable foreign currency movements caused by weaker euro brazilian real  lower volume related to building and construction end market  somewhat offset by higher volume related to commercial transportation end market.
 for transportation and construction solutions segment increased $ 10 , or 6% ( 6 % ), in 2016 compared with 2015  principally driven by net productivity improvements across all businesses growth in building and construction segment partially offset by lower demand in north american heavy duty truck and brazilian markets.

| 2016   | 2015   | 2014
----------------- | ------ | ------ | ------
third-party sales | $ 1802 | $ 1882 | $ 2021
atoi              | $ 176  | $ 166  | $ 180


management 2019s discussion analysis interest expense $ 17 million less in 2004 than 2003 reflecting year over year reduction in debt of $ 316 million.
 other charges declined $ 30 million 2004 due to lower environmental remediation legal workers compensation expenses absence of certain 2003 charges.
 other earnings $ 28 million higher 2004 due to higher earnings from equity affiliates.
 effective tax rate for 2004 was 30. 29% ( 30. 29 % ) compared to 34. 76% ( 34. 76 % ) for full year 2003.
 reduction in rate 2004 reflects benefit subsidy offered medicare act not subject to tax improvement in geographical mix of non- u.
 earnings favorable resolution 2004 of matters related to two open.
 federal income tax years.
 net income 2004 totaled $ 683 million increase of $ 189 million over 2003 earnings per share 2013 diluted increased $ 1. 06 to $ 3. 95 per share.
 results business segments net sales operating income ( millions ) 2004 2003 coatings $ 5275 $ 4835 $ 777 $ 719.
 chemicals 2034 1771 291 228 operating income by segment for 2003 revised to reflect change in allocation method for pension postretirement benefit costs 2004 ( see note 22, 201cbusiness segment information 201d under item 8 form 10-k ).
 coatings sales increased $ 440 million or 9% ( 9 % ) in 2004.
 sales increased 6% ( 6 % ) from improved volumes coatings businesses 4% ( 4 % ) due to positive effects of foreign currency translation european operations.
 sales declined 1% ( 1 % ) due to lower selling prices principally automotive business.
 operating income increased $ 58 million in 2004.
 factors increasing operating income higher sales volume ( $ 135 million ) favorable effects of currency translation improved manufacturing efficiencies of $ 20 million.
decreasing operating income were inflationary cost increases $ 82 million lower selling prices.
 glass sales increased $ 54 million or 3% ( 3 % ) in 2004.
 sales increased 6% ( 6 % ) from improved volumes from performance glazings flat glass ) fiber glass  automotive original equipment businesses lower volumes in automotive replacement glass business.
 sales increased 2% ( 2 % ) due to positive effects foreign currency translation primarily from european fiber glass operations.
 sales declined 5% ( 5 % ) due to lower selling prices across glass businesses.
 operating income 2004 increased $ 98 million.
 factors increasing operating income improved manufacturing efficiencies $ 110 million higher sales volume ( $ 53 million ) higher equity earnings gains on sale/leaseback of precious metals $ 19 million.
 principal factor decreasing operating income lower selling prices.
 fiber glass volumes up 15% ( 15 % ) year pricing declined.
 with shift of electronic printed wiring board production to asia volume pricing gains equity earnings from joint venture region grew in 2004.
 combined focused cost reductions manufacturing efficiencies improve operating performance business position for future growth profitability.
 chemicals sales increased $ 263 million or 15% ( 15 % ) in 2004.
 sales increased 10% ( 10 % ) from improved volumes commodity specialty businesses 4% ( 4 % ) due to higher selling prices for commodity products.
 sales increased 1% ( 1 % ) due to positive effects foreign currency translation primarily from european operations.
 operating income increased $ 63 million in 2004.
 factors increasing operating income higher selling prices for commodity products higher sales volume ( $ 73 million ) improved manufacturing efficiencies $ 25 million lower environmental expenses.
 factors decreasing 2004 operating income were inflationary cost increases $ 40 million higher energy costs $ 79 million.
significant factors company 2019s pension and postretirement benefit costs for 2004 were $ 45 million lower than in 2003.
 decrease reflects market driven growth in pension plan assets in 2003 , impact of $ 140 million in cash contributed to pension plans by company in 2004 benefit of subsidy offered pursuant to medicare act , discussed in note 12 , 201cpension and other postretirement benefits , 201d under item 8 of form 10-k.
 commitments and contingent liabilities , including environmental matters ppg involved in lawsuits and claims , actual and potential , including some asserted against others in substantial monetary damages are sought.
 see item 3 , 201clegal proceedings 201d form 10-k and note 13 , 201ccommitments and contingent liabilities , 201d under item 8 form 10-k for description of certain lawsuits , including description proposed ppg settlement arrangement for asbestos claims announced on may 14 , 2002.
 discussed in item 3 and note 13 , result of future litigation of such lawsuits claims unpredictable , management believes aggregate outcome of all lawsuits and claims involving ppg , including asbestos-related claims in ppg settlement arrangement described in note 13 not effective, not have material effect on ppg 2019s consolidated financial position or liquidity ; any such outcome may be material to results of operations of any particular period in costs  if recognized.
 company named as defendant , with other co-defendants , in antitrust lawsuits filed in federal and state courts.
 suits allege ppg acted with competitors to fix prices and allocate markets in flat glass and automotive refinish industries.
 22 2005 ppg annual report and form 10-k

( millions ) | net sales 2004 | net sales 2003 | net sales 2004 | 2003 ( 1 )
------------ | -------------- | -------------- | -------------- | ----------
coatings     | $ 5275         | $ 4835         | $ 777          | $ 719
glass        | 2204           | 2150           | 169            | 71
chemicals    | 2034           | 1771           | 291            | 228


republic services , inc.
 notes to consolidated financial statements 2014 continued ) determine discount rate in measurement of obligations based on model matches timing and amount of expected benefit payments to maturities of high quality bonds priced as of plan measurement date.
 when timing not correspond to published high-quality bond rate model uses expected yield curve to determine appropriate current discount rate.
 yields on bonds used to derive discount rate for liability.
 term of our obligation , based on expected retirement dates of workforce  is approximately seven years.
 developing expected rate of return assumption  evaluated actual historical performance long-term return projections of plan assets  consideration to asset mix anticipated timing of plan outflows.
 employ total return investment approach mix of equity and fixed income investments used to maximize long-term return of plan assets for prudent level of risk.
 intent strategy is to minimize plan expenses by outperforming plan liabilities over long run.
 risk tolerance established through careful consideration of plan liabilities , plan funded status financial condition.
 investment portfolio contains diversified blend of equity and fixed income investments.
 equity investments diversified across u. s.
 and non-u. s.
 stocks growth , value , small and large capitalizations.
 derivatives may be used to gain market exposure efficient timely manner ; derivatives may not be used to leverage portfolio beyond market value of underlying investments.
 investment risk measured and monitored ongoing through annual liability measurements , periodic asset and liability studies  quarterly investment portfolio reviews.
 following table summarizes target asset allocation as of december 31 , 2018 and actual asset allocation as of december 31 , 2018 and 2017 for our plan : december 31 , target allocation december 31 , actual allocation december 31 , actual allocation.

 asset allocations reviewed rebalanced periodically based on funded status.
 for 2019  investment strategy for plan assets is to maintain broadly diversified portfolio achieve target of average long-term rate return of 5. 20% ( 5. 20 % ).
 believe can achieve long-term average return of 5. 20% ( 5. 20 % ), cannot be certain portfolio will perform to expectations.
 assets strategically allocated among debt equity portfolios to achieve diversification level reduces fluctuations in investment returns.
 asset allocation target ranges strategies reviewed periodically with assistance independent external consulting firm.

| december 31 2018 targetassetallocation | december 31 2018 actualassetallocation | december 31 2017 actualassetallocation
----------------- | -------------------------------------- | -------------------------------------- | --------------------------------------
debt securities   | 82% ( 82 % )                           | 83% ( 83 % )                           | 70% ( 70 % )
equity securities | 18                                     | 17                                     | 30
total             | 100% ( 100 % )                         | 100% ( 100 % )                         | 100% ( 100 % )


included in selling , general administrative expense was rent expense of $ 83. 0 million , $ 59. 0 million $ 41. 8 million for years ended december 31 , 2015 , 2014 2013 , respectively  under non-cancelable operating lease agreements.
 included in these amounts was contingent rent expense of $ 11. 0 million , $ 11. 0 million $ 7. 8 million for years ended december 31 , 2015 , 2014 2013 , respectively.
 sports marketing other commitments within normal course of business  company enters into contractual commitments to promote company 2019s brand products.
 these commitments include sponsorship agreements with teams athletes on collegiate professional levels  official supplier agreements  athletic event sponsorships other marketing commitments.
 following is schedule of company 2019s future minimum payments under sponsorship other marketing agreements as of december 31 , 2015 , significant sponsorship other marketing agreements entered during period after december 31 , 2015 through date of this report : ( in thousands ).
 amounts listed above are minimum compensation obligations guaranteed royalty fees required paid under company 2019s sponsorship other marketing agreements.
 amounts do not include additional performance incentives product supply obligations provided under certain agreements.
 not possible to determine company will spend on product supply obligations on annual basis as contracts do not stipulate specific cash amounts spent on products.
 amount of product provided to sponsorships depends on factors including general playing conditions  number of sporting events company 2019s decisions regarding product and marketing initiatives.
 costs to design , develop  source purchase products furnished to endorsers are incurred over period of time not tracked separately from similar costs incurred for products sold to customers.
 connection with contracts agreements company has agreed to indemnify counterparties against third party claims to infringement of intellectual property rights other items.
generally indemnification obligations do not apply in situations counterparties grossly negligent , engage in willful misconduct or act in bad faith.
 based on company 2019s historical experience and estimated probability of future loss  company determined fair value of indemnifications not material to its consolidated financial position or results of operations.
 from time to time company is involved in litigation and other proceedings  including matters commercial and intellectual property disputes trade , regulatory other claims related to its business.
 company believes all current proceedings are routine in and incidental to conduct its business ultimate resolution of such proceedings not have material adverse effect on its consolidated financial position , results of operations or cash flows.
 following company 2019s announcement of creation of new class of common stock , referred as class c common stock , par value $ 0. 0003 1/3 per share , four class action lawsuits were brought

2016                                                | $ 126488
--------------------------------------------------- | --------
2017                                                | 138607
2018                                                | 137591
2019                                                | 98486
2020                                                | 67997
2021 and thereafter                                 | 289374
total future minimum sponsorship and other payments | $ 858543


pricing loans.
 when available valuation assumptions included observable inputs based on whole loan sales.
 adjustments made to assumptions to account for situations uncertainties exist including market conditions liquidity.
 credit risk included part of valuation process for loans considering expected rates of return for market participants for similar loans in marketplace.
 based on significance of unobservable inputs classify portfolio as level 3.
 equity investments valuation of direct and indirect private equity investments requires significant management judgment due to absence of quoted market prices lack of liquidity long-term nature of investments.
 carrying values of direct and affiliated partnership interests reflect expected exit price based on techniques including publicly traded price multiples of adjusted earnings of entity independent appraisals anticipated financing and sale transactions with third parties pricing used to value entity in recent financing transaction.
 in september 2009  fasb issued asu 2009-12 2013 fair value measurements and disclosures ( topic 820 ) 2013 investments in certain entities calculate net asset value per share ( or equivalent ).
 based on guidance value indirect investments in private equity funds based on net asset value as provided in financial statements from managers.
 due to time lag in receipt of financial information based on review of investments and valuation techniques adjustments to manager-provided value made when available recent portfolio company information or market information indicates significant change in value from provided by manager of fund.
 investments classified as level 3.
 customer resale agreements account for structured resale agreements  economically hedged using free-standing financial derivatives at fair value.
 fair value for structured resale agreements determined using model includes observable market data interest rates inputs.
observable market inputs to model validated to external sources including yield curves implied volatility market-related data.
 instruments classified as level 2.
 blackrock series c preferred stock effective february 27 , 2009 elected to account for approximately 2. 9 million shares of blackrock series c preferred stock received in stock exchange with blackrock at fair value.
 series c preferred stock economically hedges blackrock ltip liability accounted for as derivative.
 fair value of series c stock determined using third-party modeling approach includes observable and unobservable inputs.
 approach considers expectations of default/liquidation event use of liquidity discounts based on inability to sell security at fair open market price timely.
 due to significance unobservable inputs security classified as level 3.
 level 3 assets liabilities financial instruments considered level 3 when values determined using pricing models discounted cash flow methodologies similar techniques one significant model assumption or input is unobservable.
 level 3 assets and liabilities dollars in millions level 3 assets level 3 liabilities % ( ) of total assets at fair value % ) total liabilities at fair value consolidated assets liabilities.
 during 2009  securities transferred into level 3 from level 2 exceeded securities transferred out by $ 4. 4 billion.
 total securities measured at fair value classified in level 3 at december 31, 2009 and december 31, 2008 included securities available for sale trading securities primarily of non-agency residential mortgage-backed securities and asset- backed securities where management determined volume and level of activity for assets significantly decreased.
 no recent new label issues in residential mortgage-backed securities market.
 lack of relevant market activity for securities resulted in management modifying valuation methodology for instruments transferred in 2009.
level 3 assets include commercial mortgage loans for sale , equity securities auction rate securities  corporate debt securities private equity investments  residential mortgage servicing rights other assets.

dollars in millions | total level 3 assets | total level 3 liabilities | % (  % ) of total assets at fair value | % (  % ) of total liabilities at fair value | % (  % ) of consolidated assets | % (  % ) of consolidated liabilities |
------------------- | -------------------- | ------------------------- | -------------------------------------- | ------------------------------------------- | ------------------------------- | ------------------------------------ | --------
december 31 2009    | $ 14151              | $ 295                     | 22% ( 22 % )                           | 6% ( 6 % )                                  | 5% ( 5 % )                      | < 1                                  | % (  % )
december 31 2008    | 7012                 | 22                        | 19% ( 19 % )                           | < 1% ( 1 % )                                | 2% ( 2 % )                      | < 1% ( 1 % )                         |


westrock company notes to consolidated financial statements continued reconciliation of beginning and ending amount gross unrecognized tax benefits follows ( in millions ) :.
 1 ) amounts in fiscal 2018 and 2017 relate to mps acquisition.
 adjustments in fiscal 2016 to combination sp fiber acquisition.
 2 ) amounts in fiscal 2018 relate to settlement of state audit examinations federal state amended returns filed related to affirmative adjustments for reserve.
 amounts in fiscal 2017 relate to settlement of federal state audit examinations with taxing authorities.
 as of september 30 , 2018 and 2017 total unrecognized tax benefits approximately $ 127. 1 million and $ 148. 9 million  exclusive of interest and penalties.
 balances september if prevail on all unrecognized tax benefits recorded approximately $ 108. 7 million and $ 138. 0 million  would benefit effective tax rate.
 regularly evaluate  assess adjust related liabilities in changing facts circumstances cause effective tax rate to fluctuate period period.
 recognize estimated interest and penalties related to unrecognized tax benefits in income tax expense in consolidated statements of operations.
 as of september 30 , 2018  had liabilities of $ 70. 4 million related to estimated interest and penalties for unrecognized tax benefits.
 as of september 30 , 2017  had liabilities of $ 81. 7 million  net of indirect benefits  related to estimated interest penalties for unrecognized tax benefits.
 results of operations for fiscal year ended september 30 , 2018 , 2017 and 2016 include expense of $ 5. 8 million , $ 7. 4 million and $ 2. 9 million  net of indirect benefits  related to estimated interest and penalties respect liability for unrecognized tax benefits.
as of september 30 , 2018 , possible our unrecognized tax benefits will decrease by up to $ 5. 5 million in next twelve months due to expiration of statues of limitations settlement of issues.
 we file federal , state local income tax returns in u. s.
 and various foreign jurisdictions.
 with few exceptions no longer subject to u. s.
 federal state local income tax examinations by tax authorities for years prior to fiscal 2015 and fiscal 2008 , respectively.
 no longer subject to non-u. s.
 income tax examinations by tax authorities for years prior to fiscal 2011 , except for brazil for not subject to tax examinations for years prior to 2005.
 believe our tax positions appropriate , subject to audit or other modifications no assurance modifications will not adversely affect our results of operations , financial condition or cash flows.
 note 6.
 segment information we report financial results of operations in following three reportable segments : corrugated packaging , containerboard mill corrugated packaging operations recycling operations ; consumer packaging , consumer mills  folding carton beverage merchandising displays partition operations ; land and development , sells real estate primarily in charleston , sc region.
 following combination until completion of separation , financial results of operations had a fourth reportable segment , specialty chemicals.
 prior to hh&b sale , our consumer packaging segment included hh&b.
 certain income and expenses not allocated to our segments information

| 2018           | 2017           | 2016
------------------------------------------------------------------------- | -------------- | -------------- | ------------
balance at beginning of fiscal year                                       | $ 148.9        | $ 166.8        | $ 106.6
additions related to purchase accounting ( 1 )                            | 3.4            | 7.7            | 16.5
additions for tax positions taken in current year                         | 3.1            | 5.0            | 30.3
additions for tax positions taken in prior fiscal years                   | 18.0           | 15.2           | 20.6
reductions for tax positions taken in prior fiscal years                  | -5.3 ( 5.3 )   | -25.6 ( 25.6 ) | -9.7 ( 9.7 )
reductions due to settlement ( 2 )                                        | -29.4 ( 29.4 ) | -14.1 ( 14.1 ) | -1.3 ( 1.3 )
( reductions ) additions for currency translation adjustments             | -9.6 ( 9.6 )   | 2.0            | 7.0
reductions as a result of a lapse of the applicable statute oflimitations | -2.0 ( 2.0 )   | -8.1 ( 8.1 )   | -3.2 ( 3.2 )
balance at end of fiscal year                                             | $ 127.1        | $ 148.9        | $ 166.8


management 2019s discussion analysis 102 jpmorgan chase & co. /2016 annual report derivative contracts normal business firm uses derivative instruments predominantly for market-making activities.
 derivatives enable customers manage exposures to fluctuations in interest rates currencies other markets.
 firm also uses derivative instruments to manage own credit other market risk exposure.
 nature of counterparty settlement mechanism of derivative affect credit risk to firm exposed.
 for otc derivatives firm exposed to credit risk of derivative counterparty.
 for exchange- traded derivatives ( 201cetd 201d ) futures options 201ccleared 201d over-the-counter ( 201cotc-cleared 201d ) derivatives firm generally exposed to credit risk of relevant ccp.
 possible firm seeks to mitigate credit risk exposures from derivative transactions through use legally enforceable master netting arrangements collateral agreements.
 further discussion of derivative contracts  counterparties settlement types see note 6.
 table summarizes net derivative receivables for periods presented.
 derivative receivables.
 ( a ) includes collateral related to derivative instruments where appropriate legal opinion not sought or obtained.
 derivative receivables reported on consolidated balance sheets were $ 64. 1 billion and $ 59. 7 billion at december 31 , 2016 and 2015  respectively.
 amounts represent fair value of derivative contracts after giving effect to legally enforceable master netting agreements cash collateral held by firm.
 management 2019s view appropriate measure of current credit risk should consideration additional liquid securities ( primarily.
 government agency securities other group of seven nations ( 201cg7 201d ) government bonds ) other cash collateral held by firm aggregating $ 22. 7 billion and $ 16.6 billion at december 31 , 2016 and 2015 , respectively may be used as security when fair value of client 2019s exposure is in firm 2019s favor.
 change in derivative receivables predominantly related to client-driven market-making activities.
 increase in derivative receivables reflected impact of market movements  increased foreign exchange receivables  partially offset by reduced commodity derivative receivables.
 in addition to collateral described in firm holds additional collateral ( primarily cash , g7 government securities , other liquid government-agency and guaranteed securities, corporate debt and equity securities ) delivered by clients at initiation of transactions collateral related to contracts non-daily call frequency and collateral firm agreed to return but not yet settled as of reporting date.
 this collateral does not reduce balances not included in table available as security against potential exposure should fair value of client 2019s derivative transactions move in firm 2019s favor.
 derivative receivables fair value , net of all collateral  does not include other credit enhancements , such as letters of credit.
 for additional information on firm 2019s use of collateral agreements , see note 6.
 useful as current view of credit exposure net fair value of derivative receivables does not capture potential future variability of credit exposure.
 to capture potential future variability of credit exposure firm calculates  on client-by-client basis three measures of potential derivatives-related credit loss : peak , derivative risk equivalent ( 201cdre 201d ) and average exposure ( 201cavg 201d ).
 these measures all incorporate netting and collateral benefits  where applicable.
 peak represents conservative measure of potential exposure to counterparty calculated equivalent to 97. 5% (. 5 % ) confidence level over life of transaction.
peak is primary measure used by firm for setting credit limits for derivative transactions , senior management reporting derivatives exposure management.
 dre exposure measure expresses risk of derivative exposure equivalent to risk of loan exposures.
 dre less extreme measure of potential credit loss than peak used for aggregating derivative credit risk exposures with loans other credit risk.
 avg is measure of expected fair value of firm 2019s derivative receivables at future time periods  including benefit of collateral.
 avg exposure over total life of derivative contract used as primary metric for pricing purposes to calculate credit capital cva .
 three year avg exposure was $ 31. 1 billion and $ 32. 4 billion at december 31 , 2016 and 2015  respectively compared with derivative receivables , net of all collateral , of $ 41. 4 billion and $ 43. 1 billion at december 31 , 2016 and 2015 , respectively.
 fair value of firm 2019s derivative receivables incorporates adjustment , cva , to reflect credit quality of counterparties.
 cva based on firm 2019s avg to counterparty counterparty 2019s credit spread in credit derivatives market.
 primary components of changes in cva are credit spreads , new deal activity or unwinds  changes in underlying market environment.
 firm believes active risk management essential to controlling dynamic credit

december 31 ( in millions )                                                           | 2016             | 2015
------------------------------------------------------------------------------------- | ---------------- | ----------------
interest rate                                                                         | $ 28302          | $ 26363
credit derivatives                                                                    | 1294             | 1423
foreign exchange                                                                      | 23271            | 17177
equity                                                                                | 4939             | 5529
commodity                                                                             | 6272             | 9185
total net of cash collateral                                                          | 64078            | 59677
liquid securities and other cash collateral held against derivative receivables ( a ) | -22705 ( 22705 ) | -16580 ( 16580 )
total net of all collateral                                                           | $ 41373          | $ 43097


prior service cost or credits , net actuarial gains or losses ) as part of non-operating income.
 adopted requirements of asu no.
 2017-07 on january 1 , 2018 using retrospective transition method.
 expect adoption of asu no.
 2017-07 to result in increase to consolidated operating profit of $ 471 million and $ 846 million for 2016 and 2017 , corresponding decrease in non-operating income for each year.
 not expect impact to business segment operating profit , consolidated net earnings or cash flows of adopting asu no.
 2017-07.
 intangibles-goodwill and other in january 2017, fasb issued asu no.
 2017-04 , intangibles-goodwill and other ( topic 350 ) eliminates requirement to compare implied fair value of reporting unit goodwill with carrying amount of goodwill ( referred as step 2 ) from goodwill impairment test.
 new standard not change how goodwill impairment identified.
 continue to perform quantitative and qualitative goodwill impairment test by comparing fair value of each reporting unit to carrying amount but if required to recognize goodwill impairment charge  under new standard amount of charge calculated by subtracting reporting unit 2019s fair value from carrying amount.
 under prior standard  if required to recognize goodwill impairment charge  step 2 required to calculate implied value of goodwill by assigning fair value of reporting unit to all assets and liabilities as if reporting unit acquired in business combination amount of charge calculated by subtracting reporting unit 2019s implied fair value of goodwill from actual goodwill balance.
 new standard effective for interim and annual reporting periods beginning after december 15 , 2019  early adoption permitted be applied prospectively from date of adoption.
elected to adopt new standard for future goodwill impairment tests beginning of third quarter of 2017  simplifies evaluation of goodwill for impairment.
 impact new standard depend on outcomes of future goodwill impairment tests.
 derivatives and hedging inaugust 2017 , fasb issuedasu no.
 2017-12derivatives and hedging ( topic 815 )  eliminates requirement to separately measure and report hedge ineffectiveness.
 guidance effective for fiscal years after december 15 , 2018 early adoption permitted.
 not expect significant impact to consolidated assets liabilities net earnings cash flows adopting new standard.
 plan to adopt new standard january 1 , 2019.
 leases in february 2016 , fasb issuedasu no.
 2016-02 , leases ( topic 842 )  requires recognition of lease assets lease liabilities on balance sheet disclosure of key information about leasing arrangements for lessees and lessors.
 new standard effective january 1, 2019 for public companies early adoption permitted.
 new standard requires application modified retrospective approach to beginning of earliest period in financial statements.
 continuing to evaluate expected impact to consolidated financial statements related disclosures.
 plan to adopt new standard effective january 1 , 2019.
 note 2 2013 earnings per share theweighted average number of shares outstanding to compute earnings per common sharewere follows ( in millions ) :.
 compute basic and diluted earnings per common share by dividing net earnings by respectiveweighted average number of common shares outstanding for periods presented.
 calculation of diluted earnings per common share includes dilutive effects for assumed vesting of outstanding restricted stock units ( rsus ), performance stock units ( psus ) exercise of outstanding stock options based on treasury stock method.
no significant anti-dilutive equity awards for years ended december 31 , 2017  2016 2015.
 note 3 2013 acquisitions divestitures acquisition of sikorsky aircraft corporation on november 6, 2015  completed acquisition sikorsky from united technologies corporation ( utc ) certain utc 2019s subsidiaries.
 purchase price acquisition was $ 9. 0 billion  net of cash acquired.
 result acquisition

| 2017  | 2016  | 2015
------------------------------------------------------------------- | ----- | ----- | -----
weighted average common shares outstanding for basic computations   | 287.8 | 299.3 | 310.3
weighted average dilutive effect of equity awards                   | 2.8   | 3.8   | 4.4
weighted average common shares outstanding for diluted computations | 290.6 | 303.1 | 314.7


uncoated freesheet paper market pulp announced end of 2009 effective.
 input costs expected higher due to wood supply constraints at kwidzyn mill annual tariff increases on energy russia.
 planned main- tenance outage costs expected flat operating costs favorable.
 asian printing papers net sales were approx- $ 50 million in 2009 compared with $ 20 million in 2008 and 2007.
 operating earnings increased slightly in 2009 compared 2008 less than $ 1 million in all periods.
.
 market pulp net sales 2009 totaled $ 575 million compared with $ 750 million in 2008 $ 655 million in 2007.
 operating earnings 2009 were $ 140 million ( loss of $ 71 million excluding alter- native fuel mixture credits plant closure costs ) compared with loss of $ 156 million ( loss $ 33 million excluding costs perma- nent shutdown of bastrop mill ) in 2008 earn ings $ 78 million in 2007.
 sales volumes 2009 decreased from 2008 levels due to weaker global demand.
 average sales price realizations lower decline in demand resulted in significant price declines for market pulp smaller declines in fluff pulp.
 input costs for wood  energy chemicals decreased freight costs lower.
 mill operating costs favorable across all mills planned maintenance downtime costs lower.
 lack-of-order downtime in 2009 increased to approx 540000 tons including 480000 tons related to permanent shutdown of bastrop mill in fourth quarter of 2008 compared with 135000 tons in 2008.
 first quarter of 2010 sales volumes expected to increase slightly reflecting improving customer demand for fluff pulp offset by seasonally weaker demand for softwood hard- wood pulp.
 average sales price realizations expected to improve reflecting previously announced sales price increases for fluff pulp hardwood pulp softwood pulp.
input costs expected increase for wood energy chemicals freight costs may increase.
 planned maintenance downtime costs higher operating costs flat.
 consumer packaging demand pricing correlate with consumer spending economic activity.
 to prices volumes major factors affecting profitability consumer packaging are raw material energy costs freight costs manufacturing efficiency product mix.
 consumer packaging net sales in 2009 decreased 4% ( 4 % ) compared with 2008 increased 1% ( 1 % ) compared with 2007.
 operating profits increased significantly compared with 2008 2007.
 excluding alternative fuel mixture credits facility closure costs 2009 operating profits higher than 2008 57% ( 57 % ) higher than 2007.
 benefits from higher average sales price realizations ( $ 114 million ) lower raw material energy costs ( $ 114 million ) lower freight costs ( $ 21 million ) lower costs reorganiza- tion shorewood business ( $ 23 million ) favor able foreign exchange effects ( $ 14 million ) other items ( $ 12 million ) offset by lower sales volumes increased lack-of-order downtime ( $ 145 million ) costs shutdown of franklin mill ( $ 67 million ).
 operating profits 2009 included $ 330 million of alternative fuel mixture credits.
 consumer packaging in millions 2009 2008 2007.
 north american consumer packaging net sales were $ 2. 2 billion compared with $ 2. 5 billion in 2008 $ 2. 4 billion in 2007.
 operating earnings 2009 were $ 343 million ( $ 87 million excluding alter native fuel mixture credits facility closure costs ) compared with $ 8 million ( $ 38 million excluding closure costs in 2008 $ 70 million in 2007.
 coated paperboard sales volumes lower in 2009 compared with 2008 reflecting weaker market conditions.
 average sales price realizations higher reflecting full-year realization price increases implemented second half of 2008.
raw material costs for wood  energy chemicals lower in 2009 freight costs favorable.
 operating costs unfavorable planned main- tenance downtime costs higher.
 lack-of-order downtime increased to 300000 tons in 2009 from 15000 tons 2008 due to weak demand.
 operating results 2009 include income $ 330 million for alternative fuel mixture credits $ 67 million expenses for shutdown costs for franklin mill.
 foodservice sales volumes lower 2009 than 2008 due to weak world-wide economic conditions.
 average sales price realizations were

in millions      | 2009   | 2008   | 2007
---------------- | ------ | ------ | ------
sales            | $ 3060 | $ 3195 | $ 3015
operating profit | 433    | 17     | 112


part ii item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases equity securities ordinary shares publicly traded since november 17 , 2011 listed began trading new york stock exchange ( 201cnyse 201d ) under symbol 201cdlph. 201d december 4 , 2017 following spin-off delphi technologies company changed name to aptiv plc nyse symbol to 201captv. 201d as of january 25 , 2019 2 shareholders of record of ordinary shares.
 graph reflects comparative changes value from december 31, 2013 through december 31, 2018 initial investment $ 100 reinvestment of dividends in 1 ) ordinary shares 2 ) s&p 500 index 3 ) automotive peer group.
 historical share prices ordinary shares adjusted to reflect separation.
 historical performance may not be indicative of future shareholder returns.
 stock performance graph * $ 100 invested december 31 , 2013 in stock or relevant index including reinvestment of dividends.
 fiscal year ended december 31 , 2018.
 ( 1 ) aptiv plc  adjusted for distribution of delphi technologies december 4 , 2017 2 ) s&p 500 2013 standard & poor 2019s 500 total return index 3 ) automotive peer group 2013 adient plc  american axle & manufacturing holdings inc , aptiv plc , borgwarner inc , cooper tire & rubber co , cooper- standard holdings inc  dana inc  dorman products inc  ford motor co  garrett motion inc. general motors co  gentex corp  gentherm inc  genuine parts co  goodyear tire & rubber co  lear corp  lkq corp  meritor inc  motorcar parts of america inc  standard motor products inc  stoneridge inc  superior industries international inc  tenneco inc  tesla inc  tower international inc  visteon corp  wabco holdings inc company index december 31 , december 31.

company index               | december 31 2013 | december 31 2014 | december 31 2015 | december 31 2016 | december 31 2017 | december 31 2018
--------------------------- | ---------------- | ---------------- | ---------------- | ---------------- | ---------------- | ----------------
aptiv plc ( 1 )             | $ 100.00         | $ 122.75         | $ 146.49         | $ 117.11         | $ 178.46         | $ 130.80
s&p 500 ( 2 )               | 100.00           | 113.69           | 115.26           | 129.05           | 157.22           | 150.33
automotive peer group ( 3 ) | 100.00           | 107.96           | 108.05           | 107.72           | 134.04           | 106.89


credit facilities bermuda subsidiaries not admitted insurers reinsurers in u. s.  terms of certain u. s.
 insurance and reinsurance contracts require provide collateral can be in form of locs.
 ace global markets required to satisfy certain u. s.
 regulatory trust fund requirements met by issuance of locs.
 locs may be used for general corporate purposes provide underwriting capacity as funds at lloyd 2019s.
 table shows main credit facilities by credit line , usage  expiry date at december 31 , 2010.
 ( in millions of u. s.
 dollars ) credit line ( 1 ) usage expiry date.
 ( 1 ) certain facilities guaranteed by operating subsidiaries and/or ace limited.
 ( 2 ) may also be used for locs.
 ( 3 ) supports ace global markets underwriting capacity for lloyd 2019s syndicate 2488 ( discussion ).
 in november 2010 entered into four letter of credit facility agreements permit issuance of up to $ 400 million of letters of credit.
 expect most locs issued under loc agreements used to support ongoing funds at lloyd 2019s requirements of syndicate 2488 locs may also be used for other general corporate purposes.
 anticipated commercial facilities be renewed on expiry renewals subject to availability of credit from banks utilized by ace.
 in credit support insufficient could be required to provide alter- native security to clients.
 could take form of additional insurance trusts supported by investment portfolio or funds withheld using our cash resources.
 value of letters of credit required driven by statutory liabilities reported by variable annuity guarantee reinsurance clients  loss development of existing reserves  payment pattern of reserves expansion of business  loss experience of business.
facilities in table above require we maintain certain covenants , all met at december 31 , 2010.
 these covenants include : ( i ) maintenance of minimum consolidated net worth amount not less than 201cminimum amount 201d.
 for this calculation minimum amount is equal to sum of base amount ( currently $ 13. 8 billion ) plus 25 percent of consolidated net income for each fiscal quarter , ending after date current base amount became effective , plus 50 percent of any increase in consolidated net worth during same period , attributable to issuance of common and preferred shares.
 minimum amount is subject to annual reset provision.
 ( ii ) maintenance of maximum debt to total capitalization ratio of not greater than 0. 35 to 1.
 under covenant debt does not include trust preferred securities or mezzanine equity  except where ratio of sum of trust preferred securities and mezzanine equity to total capitalization is greater than 15 percent.
 in this circumstance amount greater than 15 percent would be included in debt to total capitalization ratio.
 at december 31 , 2010  minimum consolidated net worth requirement under covenant i ) was $ 14. 5 billion and our actual consolidated net worth calculated covenant was $ 21. 6 billion and ratio of debt to total capitalization was 0. 167 to 1 , below maximum debt to total capitalization ratio of 0. 35 to 1 as described in ( ii ).
 failure to comply with covenants under any credit facility would  result in event of default.
 this could require us to repay outstanding borrowings or to cash collateralize locs under facility.
 failure by ace limited ( or subsidiaries ) to pay obligation due for amount exceeding $ 50 million would result in event of default under all facilities described above.
ratings ace limited subsidiaries assigned debt financial strength insurance ) ratings from internationally recognized rating agencies including s&p  a. m.
 best  moody 2019s investors service  fitch.
 ratings issued on our companies by agencies announced publicly available directly from agencies.
 our internet site  www. acegroup. com

( in millions of u.s . dollars )               | creditline ( 1 ) | usage  | expiry date
---------------------------------------------- | ---------------- | ------ | -----------
syndicated letter of credit facility           | $ 1000           | $ 574  | nov . 2012
revolving credit/loc facility ( 2 )            | 500              | 370    | nov . 2012
bilateral letter of credit facility            | 500              | 500    | sept . 2014
funds at lloyds 2019s capital facilities ( 3 ) | 400              | 340    | dec . 2015
total                                          | $ 2400           | $ 1784 |


jpmorgan chase & co. /2014 annual report 125 lending-related commitments firm uses lending-related financial instruments , commitments ( including revolving credit facilities ) and guarantees , to meet financing needs of customers.
 contractual amounts financial instruments represent maximum possible credit risk should counterparties draw down on commitments or firm fulfills obligations under guarantees counterparties fail to perform according to terms contracts.
 in firm 2019s view total contractual amount of wholesale lending-related commitments not representative of firm 2019s actual future credit exposure or funding requirements.
 in determining credit risk exposure firm has to wholesale lending-related commitments used basis for allocating credit risk capital commitments firm has established a 201cloan-equivalent 201d amount for each commitment ; this amount represents portion of unused commitment or other contingent exposure expected based on average portfolio historical experience to become drawn upon in default by obligor.
 loan-equivalent amount of firm 2019s lending- related commitments was $ 229. 6 billion and $ 218. 9 billion as of december 31 , 2014 and 2013 , respectively.
 clearing services firm provides clearing services for clients entering into securities and derivative transactions.
 firm exposed to risk of non-performance by clients and may be required to share in losses incurred by central counterparties ( 201cccps 201d ).
 possible firm seeks to mitigate credit risk to clients through collection of adequate margin at inception and throughout life transactions and can cease provision of clearing services if clients do not adhere to obligations under clearing agreement.
 for further discussion of clearing services , see note 29.
 derivative contracts in normal course of business firm uses derivative instruments predominantly for market-making activities.
derivatives enable customers manage exposures to fluctuations in interest rates currencies other markets.
 firm uses derivative instruments to manage credit exposure.
 nature of counterparty settlement mechanism of derivative affect credit risk to firm exposed.
 for otc derivatives firm exposed to credit risk of derivative counterparty.
 for exchange-traded derivatives ( 201cetd 201d ) futures options  201ccleared 201d over-the-counter ( 201cotc-cleared 201d ) derivatives firm generally exposed to credit risk of relevant ccp.
 where possible firm seeks to mitigate credit risk exposures from derivative transactions through use legally enforceable master netting arrangements collateral agreements.
 for further discussion of derivative contracts counterparties settlement types see note 6.
 following table summarizes net derivative receivables for periods presented.
 derivative receivables.
 receivables reported on consolidated balance sheets were $ 79. 0 billion and $ 65. 8 billion at december 31 , 2014 and 2013  respectively.
 these amounts represent fair value of derivative contracts after giving effect to legally enforceable master netting agreements cash collateral held by firm.
 in management 2019s view appropriate measure of current credit risk should consideration additional liquid securities ( primarily.
 government agency securities other g7 government bonds ) other cash collateral held by firm aggregating $ 19. 6 billion and $ 14. 4 billion at december 31 , 2014 and 2013  respectively may be used as security when fair value of client 2019s exposure is in firm 2019s favor.
addition to collateral described in preceding paragraph firm holds additional collateral ( primarily : cash ; g7 government securities ; other liquid government-agency and guaranteed securities ; corporate debt and equity securities ) delivered by clients at initiation of transactions collateral related to contracts non-daily call frequency and collateral firm agreed to return but not yet settled as of reporting date.
 this collateral not reduce balances not included in table above available as security against potential exposure should fair value of client 2019s derivative transactions move in firm 2019s favor.
 as of december 31 , 2014 and 2013 , firm held $ 48. 6 billion and $ 50. 8 billion , respectively  of this additional collateral.
 prior period amount revised to conform with current period presentation.
 derivative receivables fair value , net of all collateral  not include other credit enhancements  as letters of credit.
 for additional information on firm 2019s use of collateral agreements , see note 6.

december 31 ( in millions )                                                     | 2014             | 2013
------------------------------------------------------------------------------- | ---------------- | ----------------
interest rate                                                                   | $ 33725          | $ 25782
credit derivatives                                                              | 1838             | 1516
foreign exchange                                                                | 21253            | 16790
equity                                                                          | 8177             | 12227
commodity                                                                       | 13982            | 9444
total net of cash collateral                                                    | 78975            | 65759
liquid securities and other cash collateral held against derivative receivables | -19604 ( 19604 ) | -14435 ( 14435 )
total net of all collateral                                                     | $ 59371          | $ 51324


not believe in our stockholders 2019 best interest.
 rights plan intended to protect stockholders in unfair or coercive offer to acquire company provide board of directors with time to evaluate unsolicited offers.
 rights plan may prevent or make takeovers or unsolicited corporate transactions difficult even if stockholders consider such transactions favorable possibly including transactions stockholders might receive premium for shares.
 item 1b.
 unresolved staff comments item 2.
 properties as of december 31 , 2016  significant properties used in connection with switching centers  data centers call centers warehouses were:.
 of december 31  2016 leased approximately 60000 cell sites.
 december 31 2016 leased approximately 2000 t-mobile and metropcs retail locations including stores and kiosks size from 100 square feet to 17000 square feet.
 lease office space approximately 950000 square feet for corporate headquarters in bellevue , washington.
 use these offices for engineering and administrative purposes.
 also lease space throughout u. s.  totaling approximately 1200000 square feet as of december 31 , 2016 for use regional offices primarily for administrative , engineering sales purposes.
 item 3.
 legal proceedings see note 12 2013 commitments and contingencies of notes to consolidated financial statements in part ii , item 8 of form 10-k for information regarding certain legal proceedings involved.
 item 4.
 mine safety disclosures part ii.
 item 5.
 market for registrant 2019s common equity , related stockholder matters issuer purchases of equity securities market information our common stock traded on nasdaq global select market nasdaq stock market llc ( 201cnasdaq 201d ) under symbol 201ctmus.201d as of december 31 , 2016 , 309 registered stockholders of record of our common stock , estimate total number of stockholders to higher as number our shares held by brokers or dealers for customers in street name.

| approximate number | approximate size in square feet
----------------- | ------------------ | -------------------------------
switching centers | 57                 | 1400000
data centers      | 8                  | 600000
call center       | 16                 | 1300000
warehouses        | 16                 | 500000


notes to consolidated financial statements 2013 ( continued ) ( amounts in millions  except per share amounts ) guarantees we have guarantees of certain obligations of our subsidiaries relating principally to credit facilities  media payables operating leases of certain subsidiaries.
 amount of parent company guarantees was $ 769. 3 and $ 706. 7 as of december 31 , 2009 and 2008  respectively.
 in event of non-payment by applicable subsidiary of obligations covered by guarantee we obligated to pay amounts covered by guarantee.
 as of december 31, 2009 no material assets pledged as security for parent company guarantees.
 contingent acquisition obligations table details estimated future contingent acquisition obligations payable in cash as of december 31 , 2009.
 estimated amounts listed paid in event exercise at earliest exercise date.
 see note 6 for further information payment structure of acquisitions.
 all payments contingent upon achieving projected operating performance targets satisfying other conditions in related agreements subject to revisions as earn-out periods progress.
 entered into certain acquisitions contain redeemable noncontrolling interests and call options with similar terms and conditions.
 included related estimated contingent acquisition obligation in period when earliest related option is exercisable.
 certain redeemable noncontrolling interests exercisable at discretion of noncontrolling equity owners as of december 31 , 2009.
 estimated acquisition payments of $ 20. 5 included within total payments expected to be made in 2010 if not made in 2010 will continue to carry forward into 2011 or beyond until exercised or expire.
 redeemable noncontrolling interests included in table at current exercise price payable in cash not at applicable redemption value with authoritative guidance for classification and measurement of redeemable securities.
legal matters we involved in legal and administrative proceedings of various types.
 while any litigation contains element of uncertainty , we do not believe outcome of proceedings material adverse effect on our financial condition , results of operations or cash flows.
 note 16 : recent accounting standards in december 2009 , financial accounting standards board ( 201cfasb 201d ) amended authoritative guidance related to accounting for transfers servicing of financial assets extinguishments of liabilities.
 guidance effective for company beginning january 1 , 2010.
 guidance eliminates concept of qualifying special-purpose entity changes criteria for derecognizing financial assets.
 in guidance require additional disclosures related to company 2019s continued involvement with financial assets transferred.
 do not expect adoption of this amended guidance to significant impact on our consolidated financial statements.
 in december 2009 , fasb amended authoritative guidance for consolidating variable interest entities.
 guidance effective for company beginning january 1 , 2010.
 guidance revises factors considered by reporting entity when determining whether entity insufficiently capitalized or not controlled through voting ( or similar rights ) should be consolidated.
 guidance includes revised financial statement disclosures regarding reporting entity 2019s involvement  including significant risk exposures result of involvement  impact relationship on reporting entity 2019s financial statements.
 currently evaluating potential impact of amended guidance on our consolidated financial statements.

| 2010   | 2011   | 2012   | 2013   | 2014  | thereafter | total
--------------------------------------------------------------------- | ------ | ------ | ------ | ------ | ----- | ---------- | -------
deferred acquisition payments                                         | $ 20.5 | $ 34.8 | $ 1.2  | $ 1.1  | $ 2.1 | $ 0.3      | $ 60.0
redeemable noncontrolling interests and call options with affiliates1 | 44.4   | 47.9   | 40.5   | 36.3   | 3.3   | 2014       | 172.4
total contingent acquisition payments                                 | 64.9   | 82.7   | 41.7   | 37.4   | 5.4   | 0.3        | 232.4
less : cash compensation expense included above                       | 1.0    | 1.0    | 1.0    | 0.5    | 2014  | 2014       | 3.5
total                                                                 | $ 63.9 | $ 81.7 | $ 40.7 | $ 36.9 | $ 5.4 | $ 0.3      | $ 228.9


39 annual report 2010 duke realty corporation  related party transactions we provide property asset management leasing  construction other tenant related services to unconsolidated companies in we have equity interests.
 for years ended december 31 , 2010 , 2009 2008   earned management fees of $ 7. 6 million , $ 8. 4 million $ 7. 8 million  leasing fees of $ 2. 7 million , $ 4. 2 million $ 2. 8 million construction and development fees of $ 10. 3 million , $ 10. 2 million $ 12. 7 million from these companies.
 recorded fees based on contractual terms approximate market rates for services eliminated ownership percentages of these fees in consolidated financial statements.
 commitments contingencies guaranteed repayment of $ 95. 4 million of economic development bonds issued by various municipalities in connection with certain commercial developments.
 required to make payments under guarantees to extent incremental taxes from specified developments not sufficient to pay bond debt service.
 management not believe probable required to make significant payments in satisfaction of guarantees.
 guaranteed repayment of secured and unsecured loans of six of unconsolidated subsidiaries.
 at december 31 , 2010  maximum guarantee exposure for these loans was approximately $ 245. 4 million.
 exception of guarantee of debt of 3630 peachtree joint venture for recorded contingent liability in 2009 of $ 36. 3 million  management believes probable not be required to satisfy these guarantees.
 lease certain land positions with terms extending to december 2080  total obligation of $ 103. 6 million.
 no payments on these ground leases material in any individual year.
 subject to legal proceedings claims in ordinary course of business.
opinion of management, ultimate liability these actions not affect consolidated financial statements or results of operations.
 contractual obligations at december 31 , 2010  subject to certain contractual payment obligations described in table below:.
 ( 1 ) long-term debt consists secured and unsecured debt includes principal and interest.
 interest expense for variable rate debt calculated using interest rates as of december 31 , 2010.
 ( 2 ) unsecured lines of credit consist operating line of credit matures february 2013 and line of credit of consolidated subsidiary matures july 2011.
 interest expense for unsecured lines of credit calculated using recent stated interest rates in effect.
 ( 3 ) share of unconsolidated joint venture debt includes principal and interest.
 interest expense for variable rate debt calculated using interest rate at december 31 , 2010.
 ( 4 ) represents estimated remaining costs on completion of owned development projects and third-party construction projects.

contractual obligations                              | payments due by period ( in thousands ) total | payments due by period ( in thousands ) 2011 | payments due by period ( in thousands ) 2012 | payments due by period ( in thousands ) 2013 | payments due by period ( in thousands ) 2014 | payments due by period ( in thousands ) 2015 | payments due by period ( in thousands ) thereafter
---------------------------------------------------- | --------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | --------------------------------------------------
long-term debt ( 1 )                                 | $ 5413606                                     | $ 629781                                     | $ 548966                                     | $ 725060                                     | $ 498912                                     | $ 473417                                     | $ 2537470
lines of credit ( 2 )                                | 214225                                        | 28046                                        | 9604                                         | 176575                                       | -                                            | -                                            | -
share of debt of unconsolidated joint ventures ( 3 ) | 447573                                        | 87602                                        | 27169                                        | 93663                                        | 34854                                        | 65847                                        | 138438
ground leases                                        | 103563                                        | 2199                                         | 2198                                         | 2169                                         | 2192                                         | 2202                                         | 92603
operating leases                                     | 2704                                          | 840                                          | 419                                          | 395                                          | 380                                          | 370                                          | 300
development and construction backlog costs ( 4 )     | 521041                                        | 476314                                       | 44727                                        | -                                            | -                                            | -                                            | -
other                                                | 1967                                          | 1015                                         | 398                                          | 229                                          | 90                                           | 54                                           | 181
total contractual obligations                        | $ 6704679                                     | $ 1225797                                    | $ 633481                                     | $ 998091                                     | $ 536428                                     | $ 541890                                     | $ 2768992


.
 morgan chase & co.
 / 2003 annual report 65 commercial specific loss component of allowance was $ 917 million at december 31 , 2003  a decrease of 43% ( 43 % ) from year-end 2002.
 decrease attributable to improve- ment in credit quality of commercial loan portfolio  reduction in size of portfolio.
 commercial expected loss component of allowance was $ 454 million at december 31 , 2003  decrease of 26% ( 26 % ) from year- end 2002.
 decrease reflected improvement in average quality of loan portfolio improving credit envi- ronment affected inputs to expected loss model.
 consumer expected loss component of allowance was $ 2. 3 billion at december 31 , 2003  decrease of 4% ( 4 % ) from year- end 2002.
 consumer managed loan portfolio increased by 10% ( 10 % ) businesses drove increase, home finance and auto finance  have collateralized products with lower expected loss rates.
 residual component of allowance was $ 895 million at december 31 , 2003.
 residual component  management's judgment addresses uncertainties not considered in formula-based commercial specific and expected components of allowance for credit losses.
 $ 121 million increase addressed uncertainties in eco- nomic environment and concentrations in commercial loan portfolio during first half of 2003.
 in sec- ond half of year as commercial credit quality and commercial allowance declined residual component reduced.
 at december 31 , 2003  residual component represented approximately 20% ( 20 % ) of total allowance for loan losses within firm 2019s target range of between 10% ( 10 % ) and 20% ( 20 % ).
 firm anticipates if current positive trend in economic conditions and credit quality continues commercial and residual components will continue to be reduced.
lending-related commitments provide for risk of loss in credit-extension process management computes specific expected loss components residual component for commercial lending 2013related commitments.
 computed using methodology similar to for commercial loan port- folio  modified for expected maturities probabilities of drawdown.
 allowance decreased by 11% ( 11 % ) to $ 324 million as of december 31 , 2003  due to improvement in criticized portion of firm 2019s lending-related commitments.
 credit costs.

for the year ended december 31 ( in millions ) | for the year ended december 31 commercial | for the year ended december 31 consumer | for the year ended december 31 residual | for the year ended december 31 total | for the year ended december 31 commercial | for the year ended december 31 consumer | residual   | total
---------------------------------------------- | ----------------------------------------- | --------------------------------------- | --------------------------------------- | ------------------------------------ | ----------------------------------------- | --------------------------------------- | ---------- | ------
provision for loan losses                      | $ -30 ( 30 )                              | $ 1491                                  | $ 118                                   | $ 1579                               | $ 2371                                    | $ 1589                                  | $ 79       | $ 4039
provision for lending-related commitments      | -47 ( 47 )                                | 2014                                    | 8                                       | -39 ( 39 )                           | 309                                       | 2014                                    | -17 ( 17 ) | 292
securitized credit losses                      | 2014                                      | 1870                                    | 2014                                    | 1870                                 | 2014                                      | 1439                                    | 2014       | 1439
total managed credit costs                     | $ -77 ( 77 )                              | $ 3361                                  | $ 126                                   | $ 3410                               | $ 2680                                    | $ 3028                                  | $ 62       | $ 5770


company reclassified amounts from 201cdistributions from other invested assets cash flows investing activities to 201cdistribution of limited partnership income 201d cash flows from operations for interim reporting periods 2013 : $ 33686 thousand for three months ended march 31 , 2013 ; $ 9409 thousand and $ 43095 thousand for three months six months ended june 30 , 2013 $ 5638 thousand and $ 48733 thousand for three months nine months ended september 30 , 2013 .
.
 investments.
 fixed maturity and equity security investments available for sale at market value reflect unrealized appreciation and depreciation temporary changes in market value period shareholders 2019 equity , net of income taxes in 201caccumulated other comprehensive income ( loss ) 201d in consolidated balance sheets.
 fixed maturity equity securities carried at fair value reflect fair value re- measurements as net realized capital gains and losses in consolidated statements of operations comprehensive income ( loss ).
 company records changes in fair value for fixed maturities available for sale at market value through shareholders 2019 equity  net of taxes in accumulated other comprehensive income ( loss ) cash flows from these investments used to settle reserve for losses and loss adjustment expense liabilities.
 company anticipates holding these investments for extended period as cash flow from interest maturities fund projected payout of liabilities.
 fixed maturities carried at fair value represent portfolio of convertible bond securities characteristics similar to equity securities foreign denominated fixed maturity securities used to settle loss and loss adjustment reserves in same currency.
 company carries all equity securities at fair value except for mutual fund investments underlying investments of fixed maturity securities.
equity securities available for sale at fair value company reflects changes in value as net realized capital gains and losses securities may be sold in near term depending on financial market conditions.
 interest income on all fixed maturities dividend income on all equity securities included as part of net investment income in consolidated statements of operations comprehensive income ( loss ).
 unrealized losses on fixed maturities deemed other-than-temporary related to credit quality of security charged to net income ( loss ) as net realized capital losses.
 short-term investments stated at cost approximates market value.
 realized gains or losses on sales of investments determined on of identified cost.
 for non- publicly traded securities market prices determined through pricing models evaluate securities relative to.
 treasury yield curve account issue type credit quality cash flow characteristics of each security.
 for publicly traded securities market value based on quoted market prices or valuation models observable market inputs.
 when sector financial markets inactive or illiquid company may use own assumptions about future cash flows risk-adjusted discount rates to determine fair value.
 retrospective adjustments employed to recalculate values of asset-backed securities.
 each acquisition lot reviewed to recalculate effective yield.
 recalculated effective yield used to derive book value as if new yield applied at time of acquisition.
 outstanding principal factors from time of acquisition to adjustment date used to calculate prepayment history for all applicable securities.
 conditional prepayment rates computed with life to date factor histories weighted average maturities used to effect calculation of projected and prepayments for pass-through security types.
 other invested assets include limited partnerships rabbi trusts affiliated entity.
limited partnerships affiliated entity accounted for under equity method of accounting, recorded on monthly or quarterly lag.
 c.
 uncollectible receivable balances.
 company provides reserves for uncollectible reinsurance recoverable premium receivable balances based on management 2019s assessment of collectability of outstanding balances.
 such reserves presented in table below for periods indicated.

( dollars in thousands )                        | years ended december 31 , 2013 | years ended december 31 , 2012
----------------------------------------------- | ------------------------------ | ------------------------------
reinsurance receivables and premium receivables | $ 29905                        | $ 32011


jpmorgan chase & co. /2010 annual report 281 pledged assets at december 31 , 2010 pledged to collateralize repur- chase agreements securities financing agreements derivative transactions other purposes including secure borrowings public deposits.
 certain pledged assets may be sold or repledged by secured parties identified as financial instruments owned ( pledged ) on consoli- dated balance sheets.
 at december 31, 2010 and 2009  firm pledged $ 288. 7 billion and $ 344. 6 billion  of financial instruments it owns may not be sold or repledged by secured parties.
 significant components of firm 2019s pledged assets as follows.
 total assets pledged ( a ) $ 450. 1 $ 525. 4 total assets pledged do not include assets of consolidated vies ; assets used to settle liabilities of entities.
 see note 16 on pages 244 2013 259 of annual report for additional information on assets liabilities of consolidated vies.
 collateral at december 31 , 2010 and 2009 firm accepted assets as collateral could sell or repledge  deliver use with fair value of approximately $ 655. 0 billion and $ 635. 6 billion  respectively.
 collateral obtained under resale agreements securities borrowing agreements cus- tomer margin loans derivative agreements.
 collateral received approximately $ 521. 3 billion and $ 472. 7 billion sold or repledged generally as collateral under repurchase agreements securities lending agreements cover short sales collat- eralize deposits derivative agreements.
 reporting of collat- eral sold or repledged revised in 2010 to include certain securities used to cover short sales collateralize deposits derivative agreements.
prior period amounts revised to conform current presentation.
 revision no impact on firm 2019s consolidated balance sheets or results of operations.
 contingencies in 2008, firm resolved with irs issues related to compliance with reporting and withholding requirements for certain accounts transferred to bank of new york mellon corporation ( 201cbnym 201d ) in connection with firm 2019s sale to bnym of corporate trust business.
 resolution issues not material effect on firm.

december 31 ( in billions ) | 2010    | 2009
--------------------------- | ------- | -------
securities                  | $ 112.1 | $ 155.3
loans                       | 214.8   | 285.5
trading assets and other    | 123.2   | 84.6
totalassetspledged ( a )    | $ 450.1 | $ 525.4


entergy corporation subsidiaries management 2019s financial discussion analysis regulatory asset associated with new nuclear generation development costs result of joint stipulation with mississippi public utilities staff approved by mpsc , entergy mississippi agreed not to pursue recovery of costs deferred by mpsc order in new nuclear generation docket.
 see note 2 to financial statements for discussion of new nuclear generation development costs joint stipulation.
 net revenue utility following analysis of change in net revenue comparing 2015 to 2014.
 amount ( in millions ).
 retail electric price variance due to : 2022 formula rate plan increases at entergy louisiana approved by lpsc  effective december 2014 january 2015 ; 2022 increase in energy efficiency rider revenue due to increases in energy efficiency rider at entergy arkansas  approved by apsc  effective july 2015 july 2014  new energy efficiency riders at entergy louisiana entergy mississippi began in fourth quarter 2014.
 energy efficiency revenues offset by costs in other operation maintenance expenses minimal effect on net income ; 2022 annual net rate increase at entergy mississippi of $ 16 million  effective february 2015  result of mpsc order in june 2014 rate case.
 see note 2 to financial statements for discussion of rate regulatory proceedings.
 volume/weather variance due to increase of 1402 gwh , or 1% ( 1 % ), in billed electricity usage  including increase in industrial usage effect of more favorable weather.
 increase in industrial sales due to expansion in chemicals industry addition of new customers  partially offset by decreased demand due to extended maintenance outages for existing chemicals customers.
 louisiana business combination customer credits variance due to regulatory liability of $ 107 million recorded by entergy in october 2015 result entergy gulf states louisiana and entergy louisiana business combination.
consistent with terms agreement with lpsc  electric customers of entergy louisiana realize customer credits associated with business combination in october 2015 entergy recorded regulatory liability of $ 107 million ( $ 66 million net-of-tax ).
 see note 2 to financial statements for discussion of business combination and customer credits.

| amount ( in millions )
------------------------------------------------- | ----------------------
2014 net revenue                                  | $ 5735
retail electric price                             | 187
volume/weather                                    | 95
louisiana business combination customer credits   | -107 ( 107 )
miso deferral                                     | -35 ( 35 )
waterford 3 replacement steam generator provision | -32 ( 32 )
other                                             | -14 ( 14 )
2015 net revenue                                  | $ 5829


apple inc.
  2018 form 10-k  20 company stock performance graph shows comparison of cumulative total shareholder return calculated dividend-reinvested basis for company  s&p 500 index  s&p information technology index dow jones u. s.
 technology supersector index for five years ended september 29 , 2018.
 graph assumes $ 100 invested in each company 2019s common stock s&p 500 index s&p information technology index dow jones u. s.
 technology supersector index market close september 27 , 2013.
 historic stock price performance not indicative of future stock price performance.
 * $ 100 invested september 27, 2013 in stock or index including reinvestment of dividends.
 data points are last day of each fiscal year for company 2019s common stock september 30th for indexes.
 copyright a9 2018 standard & poor 2019s  division of s&p global.
 all rights reserved.
 copyright a9 2018 s&p dow jones indices llc  division of s&p global.
 all rights reserved.
 september september.

| september2013 | september2014 | september2015 | september2016 | september2017 | september2018
-------------------------------------------- | ------------- | ------------- | ------------- | ------------- | ------------- | -------------
apple inc .                                  | $ 100         | $ 149         | $ 173         | $ 174         | $ 242         | $ 359
s&p 500 index                                | $ 100         | $ 120         | $ 119         | $ 137         | $ 163         | $ 192
s&p information technology index             | $ 100         | $ 129         | $ 132         | $ 162         | $ 209         | $ 275
dow jones u.s . technology supersector index | $ 100         | $ 130         | $ 130         | $ 159         | $ 203         | $ 266


december 2016 acquisition of camber higher volumes in fleet support oil and gas services offset by lower nuclear environmental volumes due to resolution 2016 of outstanding contract changes on nuclear environmental commercial contract.
 segment operating income 2018 - operating income in technical solutions segment for year ended december 31 , 2018  was $ 32 million compared to operating income $ 21 million in 2017.
 increase primarily due to allowance for accounts receivable in 2017 on nuclear environmental commercial contract higher income from operating investments at nuclear environmental joint ventures partially offset by one time employee bonus payments in 2018 related to tax act lower performance in fleet support services.
 2017 - operating income in technical solutions segment for year ended december 31, 2017 was $ 21 million compared to operating income $ 8 million in 2016.
 increase primarily due to improved performance in oil and gas services higher volume in mdis services following december 2016 acquisition of camber partially offset by establishment allowance for accounts receivable on nuclear environmental commercial contract in 2017 resolution 2016 of outstanding contract changes nuclear environmental commercial contract.
 backlog total backlog as of december 31 , 2018 was approximately $ 23 billion.
 backlog includes funded backlog ( funding contractually obligated customer ) and unfunded backlog funding not contractually obligated ).
 backlog excludes unexercised contract options unfunded orders.
 for contracts no stated contract values backlog includes only amounts committed by customer.
 following table presents funded and unfunded backlog by segment as of december 31 , 2018 2017:.
 expect approximately 30% ( 30 % ) of $ 23 billion total backlog december 31 , 2018 to be converted into sales in 2019.
.
 government orders comprised substantially all of backlog as of december 31 , 2018 2017.
awards 2018 - value new contract awards year ended december 31  2018 was approximately $ 9. 8 billion.
 significant new awards included contracts construction three arleigh burke class ( ddg 51 ) destroyers detail design construction of richard m.
 mccool jr.
 ( lpd 29 )  procurement of long-lead-time material for enterprise ( cvn 80 )  construction of nsc 10 ( unnamed ) and nsc 11 ( unnamed ).
 received awards 2019 valued $ 15. 2 billion for detail design construction gerald r.
 ford class ( cvn 78 ) aircraft carriers enterprise ( cvn 80 ) and cvn 81 ( unnamed ).
 2017 - value new contract awards year ended december 31 , 2017 was approximately $ 8. 1 billion.
 significant new awards included detailed design construction contract for bougainville ( lha 8 ) execution contract for rcoh of uss george washington ( cvn 73 ).

( $ in millions )   | december 31 2018 funded | december 31 2018 unfunded | december 31 2018 total backlog | december 31 2018 funded | december 31 2018 unfunded | total backlog
------------------- | ----------------------- | ------------------------- | ------------------------------ | ----------------------- | ------------------------- | -------------
ingalls             | $ 9943                  | $ 1422                    | $ 11365                        | $ 5920                  | $ 2071                    | $ 7991
newport news        | 6767                    | 4144                      | 10911                          | 6976                    | 5608                      | 12584
technical solutions | 339                     | 380                       | 719                            | 478                     | 314                       | 792
total backlog       | $ 17049                 | $ 5946                    | $ 22995                        | $ 13374                 | $ 7993                    | $ 21367


information about stock options at december 31 , 2007.
 weighted-average contractual life was approximately 4. 2 years.
 at december 31 , 2007 approximately 13788000 options total vested and expected to vest.
 weighted-average exercise price options was $ 62. 07 per share contractual life approximately 5. 2 years aggregate intrinsic value at december 31  2007 approximately $ 92 million.
 stock options granted in 2005 include options for 30000 shares granted to non-employee directors.
 no options granted in 2006 or 2007.
 awards granted to non-employee directors in 2007 include 20944 deferred stock units under outside directors deferred stock unit plan.
 deferred stock unit is phantom share of common stock requires liability accounting treatment under sfas 123r until awards paid to participants as cash.
 no vestings or service requirements awards total compensation expense recognized in full on all awarded units on date of grant.
 weighted-average grant-date fair value of options granted in 2007, 2006 and 2005 was $ 11. 37 , $ 10. 75 and $ 9. 83 per option.
 stock-based compensation expense under sfas 123r grant-date fair value applied to options granted with reduction for estimated forfeitures.
 at december 31 , 2006 and 2005 options for 10743000 and 13582000 shares of common stock exercisable at weighted-average price of $ 58. 38 and $ 56. 58 .
 total intrinsic value of options exercised during 2007 , 2006 and 2005 was $ 52 million , $ 111 million and $ 31 million .
 at december 31 , 2007 aggregate intrinsic value of all options outstanding and exercisable was $ 94 million and $ 87 million .
cash received from option exercises under incentive plans for 2007 , 2006 and 2005 was approximately $ 111 million , $ 233 million $ 98 million respectively.
 actual tax benefit realized for tax deduction from option exercises under incentive plans for 2007 2006 2005 was approximately $ 39 million , $ 82 million and $ 34 million, respectively.
 no options granted in excess of market value in 2007 , 2006 or 2005.
 shares of common stock available next year for granting of options and other awards under incentive plans were 40116726 at december 31 , 2007.
 total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 41787400 shares at december 31, 2007 includes shares available for issuance under incentive plans, employee stock purchase plan director plan.
 during 2007  issued approximately 2. 1 million shares from treasury stock in connection with stock option exercise activity.
 intend to utilize treasury stock for future stock option exercises.
 adopted fair value recognition provisions of sfas 123 to all employee awards including stock options granted modified or settled after january 1 , 2003.
 recognized compensation expense for stock options on straight-line basis over pro rata vesting period.
 total compensation expense recognized related to pnc stock options in 2007 was $ 29 million compared with $ 31 million in 2006 and $ 29 million in 2005.
 pro forma effects table included in note 1 accounting policies sets forth pro forma net income and basic and diluted earnings per share if compensation expense recognized under sfas 123 and 123r for stock options for 2005.
 for computing stock option expense 2005 pro forma results estimated fair value of stock options using black-scholes option pricing model.
 model requires use of numerous assumptions many subjective.
, 2005 pro forma results are estimates of results operations as if compensation expense recognized for all stock-based compensation awards not indicative of impact on future periods.

december 31 2007shares in thousandsrange of exercise prices | options outstanding shares | options outstanding weighted- averageexercise price | options outstanding weighted-average remaining contractual life ( in years ) | options outstanding shares | weighted-averageexercise price
----------------------------------------------------------- | -------------------------- | --------------------------------------------------- | ---------------------------------------------------------------------------- | -------------------------- | ------------------------------
$ 37.43 2013 $ 46.99                                        | 1444                       | $ 43.05                                             | 4.0                                                                          | 1444                       | $ 43.05
47.00 2013 56.99                                            | 3634                       | 53.43                                               | 5.4                                                                          | 3022                       | 53.40
57.00 2013 66.99                                            | 3255                       | 60.32                                               | 5.2                                                                          | 2569                       | 58.96
67.00 2013 76.23                                            | 5993                       | 73.03                                               | 5.5                                                                          | 3461                       | 73.45
total                                                       | 14326                      | $ 62.15                                             | 5.3                                                                          | 10496                      | $ 59.95


graph compares cumulative 4-year stockholder return our common stock relative to cumulative return nasdaq composite index s&p 400 information technology index.
 graph assumes value investment in common stock each index ( including reinvestment dividends ) was $ 100 on january 3, 2009 tracks through december 29 , 2012.
 comparison of 4 year cumulative total return* among cadence design systems , inc. nasdaq composite index  s&p 400 information technology cadence design systems.
 nasdaq composite s&p 400 information technology 12/29/121/1/11 12/31/111/2/101/3/09 *$ 100 invested on 1/3/09 in stock or 12/31/08 in index including reinvestment dividends.
 indexes calculated on month-end basis.
 copyright a9 2013 s&p , division of mcgraw-hill companies all rights reserved.
 stock price performance graph not necessarily indicative of future stock price performance.

| 1/3/2009 | 1/2/2010 | 1/1/2011 | 12/31/2011 | 12/29/2012
------------------------------ | -------- | -------- | -------- | ---------- | ----------
cadence design systems inc .   | 100.00   | 155.99   | 215.10   | 270.83     | 350.00
nasdaq composite               | 100.00   | 139.32   | 164.84   | 167.06     | 187.66
s&p 400 information technology | 100.00   | 151.58   | 198.02   | 174.88     | 201.26