performance units granted to certain executives in fiscal 2014 based on one-year performance period.
 after compensation committee certified performance results, 25% ( 25 % ) of performance units converted to unrestricted shares.
 remaining 75% ( 75 % ) converted to restricted shares vest in equal installments on first three anniversaries of conversion date.
 performance units granted to certain executives during fiscal 2015 based on three-year performance period.
 after compensation committee certifies performance results for three-year period performance units earned will convert into unrestricted common stock.
 compensation committee may set range of possible performance-based outcomes for performance units.
 depending on achievement of performance measures grantee may earn up to 200% ( 200 % ) of target number of shares.
 for awards with only performance conditions recognize compensation expense over performance period using grant date fair value of award based on number of shares expected to be earned according to level of achievement of performance goals.
 if number of shares expected to be earned change during performance period make cumulative adjustment to share-based compensation expense based on revised number of shares expected to be earned.
 during fiscal 2015 certain executives granted performance units refer to as leveraged performance units  lpus.
 lpus contain market condition based on relative stock price growth over three-year performance period.
 lpus contain minimum threshold performance if not met result in no payout.
 lpus contain maximum award opportunity set as fixed dollar and fixed number of shares.
 after three-year performance period one-third of earned units converts to unrestricted common stock.
 remaining two-thirds convert to restricted stock vest in equal installments on each first two anniversaries of conversion date.
recognize share-based compensation expense based on grant date fair value of lpus  determined by monte carlo model  straight-line basis over requisite service period for each separately vesting portion of lpu award.
 total shareholder return units before fiscal 2015  executives granted total shareholder return ( 201ctsr 201d ) units performance-based restricted stock units earned based on total shareholder return over three-year performance period compared to companies s&p 500.
 once performance results certified  tsr units convert into unrestricted common stock.
 depending on performance grantee may earn up to 200% ( 200 % ) of target number of shares.
 target number of tsr units for each executive set by compensation committee.
 recognize share-based compensation expense based on grant date fair value of tsr units  determined by monte carlo model  straight-line basis over vesting period.
 following table summarizes changes in unvested share-based awards for years ended may 31, 2015 and 2014 ( shares in thousands ) : shares weighted-average grant-date fair value.
 global payments inc.
 | 2015 form 10-k annual report 2013 81

| shares       | weighted-averagegrant-datefair value
----------------------- | ------------ | ------------------------------------
unvested at may 31 2013 | 1096         | $ 44
granted                 | 544          | 47
vested                  | -643 ( 643 ) | 45
forfeited               | -120 ( 120 ) | 45
unvested at may 31 2014 | 877          | 45
granted                 | 477          | 72
vested                  | -324 ( 324 ) | 46
forfeited               | -106 ( 106 ) | 53
unvested at may 31 2015 | 924          | $ 58


notes to consolidated financial statements 192 jpmorgan chase & co.
 / 2008 annual report consolidation analysis multi-seller conduits administered by firm not consoli- dated at december 31 , 2008 and 2007 , because each conduit had issued expected loss notes ( 201celns 201d ) , holders com- mitted to absorbing majority of expected loss of each respective conduit.
 implied support firm not have continues not intent to pro- tect eln holders from potential losses on conduits 2019 holdings has no plans to remove assets from any conduit unless required in administrator.
 should transfer occur , firm allocate losses on assets between itself and eln holders in accordance with terms of applicable eln.
 expected loss modeling in determining primary beneficiary of conduits firm uses monte carlo 2013based model to estimate expected losses of each conduits considers relative rights and obliga- tions of each variable interest holders.
 firm 2019s expected loss modeling treats all variable interests , other than elns , as its own to determine consolidation.
 variability considered in modeling of expected losses based on design of enti- ty.
 firm 2019s traditional multi-seller conduits designed to pass credit risk , not liquidity risk , to variable interest holders , assets intended to be held in conduit for longer term.
 under fin 46 ( r ) , firm required to run monte carlo-based expected loss model each time reconsideration event occurs.
applying guidance to conduits  following events considered reconsideration events  could affect determination of primary beneficiary of conduits : 2022 new deals , including issuance of new or additional variable interests ( credit support , liquidity facilities  ) ; 2022 changes in usage , including change in level of outstand- ing variable interests ( credit support  liquidity facilities  ) ; 2022 modifications of asset purchase agreements ; 2022 sales of interests held by primary beneficiary.
 operational perspective firm does not run monte carlo-based expected loss model every time reconsideration event due to frequency occurrence.
 instead  firm runs expected loss model each quarter includes growth assump- tion for each conduit to ensure sufficient amount of elns exists for each conduit at during quarter.
 of normal quarterly modeling firm updates  when applicable inputs and assumptions used in expected loss model.
 risk ratings and loss given default assumptions are continually updated.
 total amount of expected loss notes out- standing at december 31 , 2008 and 2007 , were $ 136 million and $ 130 million , respectively.
 management concluded model assumptions used were reflective of market participants 2019 assumptions and considered probability of changes to risk ratings and loss given defaults.
 qualitative considerations multi-seller conduits designed to provide effi- cient means for clients to access commercial paper market.
 firm believes conduits disperse risk among all parties preponderance of economic risk in firm 2019s multi- seller conduits is not held by jpmorgan chase.
 consolidated sensitivity analysis on capital table below shows impact on firm 2019s reported assets , lia- bilities , tier 1 capital ratio and tier 1 leverage ratio if firm required to consolidate all multi-seller conduits it admin- isters at current carrying value.
december 31 , 2008 ( in billions , except ratios ) reported pro forma ( a ) ( b ).
 ( a ) table shows impact of consolidating assets and liabilities of multi- seller conduits at current carrying value ; no income statement or capital impact at date of consolidation.
 if firm required to consolidate assets and liabilities conduits at fair value  tier 1 capital ratio be approximately 10. 8% ( 10. 8 % ).
 fair value of assets primarily based upon pricing for comparable transactions.
 fair value assets could change significantly because pricing of conduit transactions renegotiated with client  annual basis due to changes in current market conditions.
 ( b ) consolidation assumed to occur on first day of quarter , at quarter-end levels  to provide meaningful adjustment to average assets in denomi- nator of leverage ratio.
 firm could fund purchases of assets from vies should necessary.
 2007 activity in july 2007  reverse repurchase agreement collateralized by prime residential mortgages held by firm-administered multi-seller conduit put to jpmorgan chase under deal-specific liquidity facility.
 asset transferred to and recorded by jpmorgan chase at par value based on fair value of collateral supported reverse repurchase agreement.
 during fourth quarter of 2007  additional information regarding value of collateral  including performance statistics resulted in determi- nation by firm that fair value of collateral was impaired.
 impairment losses allocated to eln holder ( party absorbs majority of expected loss from conduit ) in accor- dance with contractual provisions of eln note.
 on october 29 , 2007  certain structured cdo assets originated in second quarter of 2007 backed by subprime mortgages transferred to firm from two firm-administered multi-seller conduits.
clear in october commercial paper investors and rating agencies increasingly concerned about cdo assets backed by subprime mortgage exposures.
 because of these concerns  to ensure continuing viability of two conduits as financing vehicles for clients investment alternatives for commercial paper investors , firm , in as administrator , transferred cdo assets out of multi-seller con- duits.
 structured cdo assets transferred to firm at

( in billions except ratios ) | reported         | pro forma ( a ) ( b )
----------------------------- | ---------------- | ---------------------
assets                        | $ 2175.1         | $ 2218.2
liabilities                   | 2008.2           | 2051.3
tier 1 capital ratio          | 10.9% ( 10.9 % ) | 10.9% ( 10.9 % )
tier 1 leverage ratio         | 6.9              | 6.8


note 9 : stock based compensation company granted stock option restricted stock unit ( 201crsus 201d ) awards to non-employee directors, officers key employees company terms 2007 omnibus equity compensation plan ( 201c2007 plan 201d ).
 total aggregate number of shares of common stock be issued under 2007 plan is 15. 5.
 as of december 31 , 2015 , 8. 4 shares available for grant under 2007 plan.
 shares issued under 2007 plan may be authorized-but-unissued shares company stock or reacquired shares company stock  including shares purchased by company on open market.
 company recognizes compensation expense for stock awards over vesting period of award.
 following table presents stock-based compensation expense recorded in operation maintenance expense in consolidated statements of operations for years ended december 31:.
 no significant stock-based compensation costs capitalized during years ended december 31 , 2015, 2014 2013.
 cost of services received from employees in exchange for issuance of stock options restricted stock awards measured based on grant date fair value of awards issued.
 value of stock options rsus awards at date of grant amortized through expense over three-year service period.
 all awards granted in 2015 , 2014 2013 classified as equity.
 company receives tax deduction based on intrinsic value of award at exercise date for stock options distribution date for rsus.
 for each award  throughout requisite service period company recognizes tax benefits  included in deferred income tax assets , related to compensation costs.
 tax deductions in excess of benefits recorded throughout requisite service period recorded to common stockholders 2019 equity or statement of operations presented in financing section of consolidated statements of cash flows.
company stratified grant populations used historic employee turnover rates to estimate employee forfeitures.
 estimated rate compared to actual forfeitures at end of reporting period adjusted as necessary.
 stock options in 2015 , 2014 2013, company granted non-qualified stock options to certain employees under 2007 plan.
 stock options vest ratably over three-year service period beginning on january 1 of year of grant.
 awards have no performance vesting conditions grant date fair value amortized through expense over requisite service period using straight-line method included in operations maintenance expense in accompanying consolidated statements of operations.

| 2015     | 2014     | 2013
------------------------------------------- | -------- | -------- | --------
stock options                               | $ 2      | $ 2      | $ 3
rsus                                        | 8        | 10       | 9
espp                                        | 1        | 1        | 1
stock-based compensation                    | 11       | 13       | 13
income tax benefit                          | -4 ( 4 ) | -5 ( 5 ) | -5 ( 5 )
stock-based compensation expense net of tax | $ 7      | $ 8      | $ 8


kimco realty corporation subsidiaries notes consolidated financial statements continued investment in retail store leases company has interests in various retail store leases anchor store premises in neighborhood community shopping centers.
 premises sublet to retailers lease stores net lease agreements.
 income from investment in retail store leases during years ended december 31 , 2008 , 2007 2006  was approximately $ 2. 7 million , $ 1. 2 million $ 1. 3 million  respectively.
 amounts represent sublease revenues years december 2008 2007 2006 of approximately $ 7. 1 million , $ 7. 7 million $ 8. 2 million  less related expenses of $ 4. 4 million , $ 5. 1 million and $ 5. 7 million  amount management estimate provides for recovery of investment over period expected remaining term of retail store leases.
 company 2019s future minimum revenues under terms non-cancelable tenant subleases future minimum obligations through remaining terms of retail store leases  no new or renegotiated leases for premises for future years are ( in millions ) : 2009 , $ 5. 6 and $ 3. 8 ; 2010 , $ 5. 4 and $ 3. 7 ; 2011 , $ 4. 5 $ 3. 1 ; 2012 , $ 2. 3 $ 2. 1 ; 2013 , $ 1. 0 and $ 1. 3 thereafter , $ 1. 4 and $ 0. 5 ,.
 leveraged lease during june 2002  company acquired a 90% ( 90 % ) equity participation interest in existing leveraged lease of 30 properties.
 properties leased under long-term bond-type net lease primary term expires in 2016  with lessee having certain renewal option rights.
 company 2019s cash equity investment was approximately $ 4. 0 million.
 equity investment reported as net investment in leveraged lease in accordance with sfas no.
 13  accounting for leases amended ).
 from 2002 to 2007  18 properties sold proceeds from sales used to pay down mortgage debt by approximately $ 31. 2 million.
 as of december 31 , 2008  remaining 12 properties encumbered by third-party non-recourse debt of approximately $ 42. 8 million scheduled to fully amortize during primary term of lease from portion periodic net rents receivable under net lease.
 as equity participant in leveraged lease company has no recourse obligation for principal or interest payments on debt collateralized by first mortgage lien on properties and collateral assignment of lease.
 obligation offset against related net rental receivable under lease.
 at december 31 , 2008 and 2007 company 2019s net investment in leveraged lease consisted of following ( in millions ) :.
 9.
 mortgages and other financing receivables : company has various mortgages and other financing receivables loans acquired and loans originated by company.
 for complete listing of company 2019s mortgages other financing receivables at december 31, 2008  see financial statement schedule iv on page 141 of annual report on form 10-k.
 reconciliation of mortgage loans and other financing receivables on real estate

| 2008           | 2007
------------------------------------- | -------------- | --------------
remaining net rentals                 | $ 53.8         | $ 55.0
estimated unguaranteed residual value | 31.7           | 36.0
non-recourse mortgage debt            | -38.5 ( 38.5 ) | -43.9 ( 43.9 )
unearned and deferred income          | -43.0 ( 43.0 ) | -43.3 ( 43.3 )
net investment in leveraged lease     | $ 4.0          | $ 3.8


table provides weighted average assumptions in black-scholes option-pricing model for grants resulting weighted average grant date fair value per share of stock options granted for years ended december 31:.
 stock units during 2018 , 2017 2016 , company granted rsus to certain employees under 2007 plan and 2017 omnibus plan .
 rsus vest based on continued employment company over periods one to three years.

| 2018 | 2017 | 2016
--------------------------- | ---- | ---- | ----
intrinsic value             | $ 9  | $ 10 | $ 18
exercise proceeds           | 7    | 11   | 15
income tax benefit realized | 2    | 3    | 6


notes to consolidated financial statements ( continued ) note 8 2014commitments and contingencies ( continued ) following table reconciles changes in company 2019s accrued warranties and related costs ( in millions ) :.
 company generally does not indemnify end-users of its operating system and application software against legal claims software infringes third-party intellectual property rights.
 other agreements by company sometimes include indemnification provisions company could be subject to costs/or damages in of infringement claim against company or indemnified third-party.
 company not required to make significant payments resulting from such infringement claim asserted against itself or indemnified third-party in opinion of management , not have potential liability related to unresolved infringement claims subject to indemnification material adverse effect on its financial condition or operating results.
 company did not record liability for infringement costs as of either september 29 , 2007 or september 30 , 2006.
 concentrations in available sources of supply of materials and product certain key components including  not  microprocessors , enclosures , certain lcds , certain optical drives , application-specific integrated circuits ( 2018 2018asics 2019 2019 ) currently obtained by company from single or limited sources subjects company to supply and pricing risks.
 many these other key components available from multiple sources including  nand flash memory , dram memory  certain lcds  times subject to industry-wide shortages significant commodity pricing fluctuations.
 in company has entered into certain agreements for supply of critical components at favorable pricing , no guarantee company to extend or renew these agreements when they expire.
 company remains subject to significant risks of supply shortages/or price increases can adversely affect gross margins and operating margins.
, company uses components not common to global personal computer , consumer electronics mobile communication industries , new products often utilize custom components obtained from only one source until company evaluated need for and qualifies additional suppliers.
 if supply of a key single-sourced component to company delayed or curtailed , or in key manufacturing vendor delays shipments of completed products to company, company 2019s ability to ship related products in desired quantities in timely manner could be adversely affected.
 company 2019s business and financial performance could also be adversely affected depending on time required to obtain sufficient quantities from original source , or to identify obtain sufficient quantities from alternative source.
 continued availability of these components may be affected if producers to to concentrate on production of common components instead of components customized to meet company 2019s requirements.
 significant portions of company 2019s cpus , ipods  iphones , logic boards  other assembled products are now manufactured by outsourcing partners , primarily in various parts of asia.
 significant concentration of this outsourced manufacturing is currently performed by only few of company 2019s outsourcing partners , often in single locations.
 certain these outsourcing partners are sole-sourced supplier of components and manufacturing outsourcing for many of company 2019s key products , including not  assembly

| 2007         | 2006         | 2005
-------------------------------------------- | ------------ | ------------ | ------------
beginning accrued warranty and related costs | $ 284        | $ 188        | $ 105
cost of warranty claims                      | -281 ( 281 ) | -267 ( 267 ) | -188 ( 188 )
accruals for product warranties              | 227          | 363          | 271
ending accrued warranty and related costs    | $ 230        | $ 284        | $ 188


intangibles 2014 goodwill other : testing goodwill for impairment in september 2011 accounting standard update issued allows entities option to first assess qualitative factors to determine necessary to perform two-step quantitative goodwill impairment test.
 standard effective for annual and interim goodwill impairment testing beginning january 1 , 2012.
 standard not impact on financial condition  results of operations cash flows.
 note 2 : merger and acquisitions holly - frontier merger on february 21 , 2011 entered merger agreement for 201cmerger of equals 201d business combination between us and frontier for creating more diversified company broader geographic sales footprint stronger financial position efficient corporate overhead structure realizing synergies promoting accretion to earnings per share.
 legacy frontier business operations consist of crude oil refining wholesale marketing of refined petroleum products produced at el dorado and cheyenne refineries serve markets in rocky mountain plains states regions of united states.
 july 1 , 2011  north acquisition , inc. direct wholly-owned subsidiary of holly  merged with into frontier frontier surviving as wholly-owned subsidiary of holly.
 concurrent merger changed name to hollyfrontier corporation changed ticker symbol for common stock traded on new york stock exchange to 201chfc. 201d subsequent to merger following approval by post-closing board of directors of hollyfrontier  frontier merged with into hollyfrontier  hollyfrontier continuing as surviving corporation.
 accordance with merger agreement issued 102. 8 million shares of hollyfrontier common stock in exchange for outstanding shares of frontier common stock to former frontier stockholders.
 each outstanding share of frontier common stock converted into 0.4811 shares of hollyfrontier common stock fractional shares paid in cash.
 aggregate consideration paid in stock in with merger was $ 3. 7 billion.
 based on july 1 , 2011 market closing price of $ 35. 93 includes portion of fair value of outstanding equity-based awards assumed from frontier relates to pre-merger services.
 number of shares issued in connection with merger with frontier and closing market price of common stock at july 1, 2011 adjusted to reflect two-for-one stock split on august 31 , 2011.
 merger accounted for using acquisition method of accounting with holly considered acquirer of frontier for accounting purposes.
  purchase price allocated to fair value of acquired assets and assumed liabilities at acquisition date , excess purchase price recorded as goodwill.
 goodwill resulting from merger primarily due to favorable location of acquired refining facilities and expected synergies gained from combined business operations.
 goodwill related to merger not deductible for income tax purposes.
 following table summarizes fair value estimates of frontier assets and liabilities recognized upon merger on july 1 , 2011:.

| ( in millions )
------------------------------------------------------------------- | ------------------
cash and cash equivalents                                           | $ 872.7
accounts receivable                                                 | 737.9
inventories                                                         | 657.4
properties plants and equipment                                     | 1054.3
goodwill                                                            | 2254.0
income taxes receivable                                             | 37.8
other assets                                                        | 32.8
accounts payable                                                    | -1076.7 ( 1076.7 )
accrued liabilities                                                 | -40.7 ( 40.7 )
long-term debt                                                      | -370.6 ( 370.6 )
other long-term liabilities                                         | -96.1 ( 96.1 )
deferred income taxes                                               | -357.6 ( 357.6 )
net tangible and intangible assets acquired and liabilities assumed | $ 3705.2


middleton's reported cigars shipment volume 2012 decreased 0. 7% ( 0. 7 % ) due to changes trade inventories offset by volume growth retail share gains.
 cigarette category marlboro's 2012 retail share performance from brand-building initiatives marlboro's new architecture.
's retail share 2012 increased 0. 6 share points versus 2011 to 42. 6% (. 6 % ).
 january 2013 pm usa expanded distribution of marlboro southern cut nationally.
 part of marlboro gold family.
 pm usa's 2012 retail share increased 0. 8 share points versus 2011 reflecting retail share gains by marlboro and l&m in discount.
 gains partially offset by share losses on other portfolio brands.
 machine-made large cigars category black & mild's retail share 2012 increased 0. 5 share points.
 brand benefited from new untipped cigarillo varieties introduced 2011 black & mild seasonal offerings 2012 third-quarter introduction of black & mild jazz untipped cigarillos.
 december 2012 middleton announced plans to launch nationally black & mild jazz cigars in plastic tip and wood tip in first quarter of 2013.
 compares smokeable products segment results year ended december 31 , 2011 with year december 31 , 2010.
 net revenues  excise taxes decreased $ 221 million ( 1. 0% ( 1. 0 % ) ) due to lower shipment volume ( $ 1051 million ) offset by higher net pricing ( $ 830 million ) higher promotional investments.
 operating companies income increased $ 119 million ( 2. 1% (.1 % ) due to higher net pricing ( $ 831 million ) includes higher promotional investments marketing administration research savings cost reduction initiatives ( $ 198 million ) 2010 implementation costs to closure of cabarrus north carolina manufacturing facility ( $ 75 million ) offset by lower volume ( $ 527 million ) higher asset impairment exit costs due to 2011 cost reduction program ( $ 158 million ) higher per unit settlement charges ( $ 120 million ) higher charges to tobacco health judgments ( $ 87 million ) higher fda user fees ( $ 73 million ).
 2011  total smokeable products shipment volume decreased 4. 0% ( 4. 0 % ) versus 2010.
 pm usa's domestic cigarettes shipment volume declined 4. 0% ( 4. 0 % ) versus 2010 due to retail share losses one less shipping day offset by changes in trade inventories.
 pm usa's 2011 domestic cigarette shipment volume estimated down approximately 4% ( 4 % ) versus 2010.
 total cigarette category volume for 2011 decreased approximately 3. 5% ( 3. 5 % ) versus 2010 adjusted for changes trade inventories one less shipping day.
 total premium brands shipment volume decreased 4. 3% ( 4. 3 % ).
 marlboro's shipment volume decreased 3. 8% ( 3. 8 % ) versus 2010.
 discount brands pm usa's shipment volume decreased 0. 9% ( 0. 9 % ).
 usa's shipments of premium cigarettes accounted for 93. 7% (. 7 % ) of reported domestic cigarettes shipment volume for 2011 down from 93. 9% (. 9 % ) in 2010.
 middleton's 2011 reported cigars shipment volume unchanged versus 2010.
 2011 pm usa's retail share of cigarette category declined 0.8 share points to 49. 0% ( 49. 0 % ) due to retail share losses on marlboro.
 marlboro's 2011 retail share decreased 0. 6 share points.
 2010  marlboro delivered record full-year retail share results at lower margin levels.
 middleton retained leading share of tipped cigarillo segment of machine-made large cigars category retail share approximately 84% ( 84 % ) in 2011.
 2011  middleton's retail share cigar category increased 0. 3 share points to 29. 7% ( 29. 7 % ) versus 2010.
 black & mild's 2011 retail share increased 0. 5 share points brand benefited from new product introductions.
 fourth quarter of 2011 middleton broadened untipped cigarillo portfolio with new aroma wrap 2122 foil pouch packaging accompanied national introduction of black & mild wine.
 new fourth- quarter packaging roll-out included black & mild sweets and classic varieties.
 second quarter of 2011 middleton entered contract manufacturing arrangement to source production of portion cigars overseas.
 arrangement access additional production capacity in uncertain competitive environment excise tax environment benefits imported large cigars over manufactured domestically.
 smokeless products segment operating companies income grew during 2012 driven by higher pricing copenhagen and skoal's combined volume retail share performance effective cost management.
 table summarizes smokeless products segment shipment volume performance : shipment volume for years ended december 31.
 volume includes cans and packs sold promotional units excludes international volume not material to smokeless products segment.
 includes certain usstc and pm usa smokeless products.
 new types of smokeless products new packaging configurations

( cans and packs in millions ) | shipment volumefor the years ended december 31 , 2012 | shipment volumefor the years ended december 31 , 2011 | shipment volumefor the years ended december 31 , 2010
------------------------------ | ----------------------------------------------------- | ----------------------------------------------------- | -----------------------------------------------------
copenhagen                     | 392.5                                                 | 354.2                                                 | 327.5
skoal                          | 288.4                                                 | 286.8                                                 | 274.4
copenhagenandskoal             | 680.9                                                 | 641.0                                                 | 601.9
other                          | 82.4                                                  | 93.6                                                  | 122.5
total smokeless products       | 763.3                                                 | 734.6                                                 | 724.4


tax benefits recognized for stock-based compensation during years ended december 31 , 2011 , 2010 2009  were $ 16 million , $ 6 million $ 5 million  respectively.
 amount northrop grumman shares issued before spin-off to satisfy stock-based compensation awards recorded by northrop grumman not reflected in hii 2019s consolidated financial statements.
 company realized tax benefits during year ended december 31 , 2011  of $ 2 million from exercise of stock options and $ 10 million from issuance of stock in settlement of rpsrs and rsrs.
 unrecognized compensation expense at december 31 , 2011 $ 1 million unrecognized compensation expense related to unvested stock option awards  recognized over average period of 1. 1 years.
 at december 31 , 2011 $ 19 million of unrecognized compensation expense associated with 2011 rsrs , recognized over period 2. 2 years ; $ 10 million of unrecognized compensation expense with rpsrs converted as part of spin-off  recognized over average period one year ; $ 18 million of unrecognized compensation expense associated with 2011 rpsrs recognized over period 2. 0 years.
 stock options compensation expense for outstanding converted stock options determined at time of grant by northrop grumman.
 no additional options granted during year ended december 31 , 2011.
 fair value of stock option awards expensed on straight-line basis over vesting period of options.
 fair value of each stock option award estimated on date of grant using black-scholes option pricing model based on assumptions : dividend yield 2014the dividend yield based on northrop grumman 2019s historical dividend yield level.
 volatility 2014expected volatility based on average of implied volatility from traded options and historical volatility of northrop grumman 2019s stock.
risk-free interest rate 2014the for periods contractual life of stock option award based on yield curve of zero-coupon u. s.
 treasury bond on date award granted with maturity equal to expected term of award.
 expected term 2014the expected term of awards granted derived from historical experience represents period of time awards granted expected to be outstanding.
 stratification of expected terms based on employee populations ( executive and non-executive ) considered in analysis.
 significant weighted-average assumptions used to value stock options granted during years ended december 31, 2010 and 2009:.
 weighted-average grant date fair value of stock options granted years ended december 31  2010 2009 was $ 11 and $ 7 , per share  respectively.

| 2010           | 2009
------------------------------ | -------------- | --------------
dividend yield                 | 2.9% ( 2.9 % ) | 3.6% ( 3.6 % )
volatility rate                | 25% ( 25 % )   | 25% ( 25 % )
risk-free interest rate        | 2.3% ( 2.3 % ) | 1.7% ( 1.7 % )
expected option life ( years ) | 6              | 5 & 6


edwards lifesciences corporation notes to consolidated financial statements continued ) 7.
 acquisitions continued ) recorded to goodwill.
 following table summarizes fair values of assets acquired liabilities assumed ( in millions ) :.
 goodwill includes expected synergies benefits company believes result from acquisition.
 goodwill assigned to company 2019s united states segment not deductible for tax purposes.
 ipr&d capitalized at fair value as intangible asset with indefinite life assessed for impairment in subsequent periods.
 fair value of ipr&d determined using income approach.
 approach determines fair value based on cash flow projections discounted to present value using risk-adjusted rate of return.
 discount rate used determine fair value of ipr&d was 16. 5% ( 16. 5 % ).
 completion of successful design developments , bench testing  pre-clinical studies human clinical studies required prior to selling any product.
 risks and uncertainties associated with completing development reasonable period include related to design , development  manufacturability of product , success of pre-clinical clinical studies  timing of regulatory approvals.
 valuation assumed $ 97. 7 million of additional research and development expenditures incurred prior to date of product introduction company not anticipate significant changes to forecasted research and development expenditures associated with cardiaq program.
 company 2019s valuation model assumed net cash inflows commence in late 2018  if successful clinical trial experiences lead to ce mark approval.
 upon completion of development  underlying research and development intangible asset amortized over estimated useful life.
 company disclosed in early february 2017 voluntarily paused enrollment in clinical trials for edwards-cardiaq valve to perform further design validation testing on feature of valve.
testing completed  collaboration with clinical investigators  company decided to resume screening patients for enrollment in clinical trials.
 results of operations for cardiaq included in accompanying consolidated financial statements from date of acquisition.
 pro forma results not presented as results of cardiaq not material in relation to consolidated financial statements company.
 8.
 goodwill other intangible assets on july 3, 2015  company acquired cardiaq ( see note 7 ).
 transaction resulted in increase to goodwill of $ 258. 9 million and ipr&d of $ 190. 0 million.

current assets                                 | $ 28.1
---------------------------------------------- | --------------
property and equipment net                     | 0.2
goodwill                                       | 258.9
ipr&d                                          | 190.0
current liabilities assumed                    | -32.9 ( 32.9 )
deferred income taxes                          | -66.0 ( 66.0 )
contingent consideration                       | -30.3 ( 30.3 )
total cash purchase price                      | 348.0
less : cash acquired                           | -27.9 ( 27.9 )
total cash purchase price net of cash acquired | $ 320.1


devon energy corporation subsidiaries notes consolidated financial statements 2013 proved undeveloped reserves table presents changes in devon 2019s total proved undeveloped reserves during 2015 ( mmboe ).
 reserves decreased 45% ( 45 % ) from year-end 2014 to year-end 2015 year-end 2015 balance represents 17% ( 17 % ) of total proved reserves.
 drilling development activities increased devon 2019s undeveloped reserves 24 mmboe resulted in conversion of 182 mmboe or 26% ( 26 % ) of 2014 proved undeveloped reserves to developed reserves.
 costs incurred to develop convert devon 2019s undeveloped reserves were approximately $ 2. 2 billion for 2015.
 revisions other than price decreased devon 2019s proved undeveloped reserves 120 mmboe due to evaluations of certain properties in u.
 canada.
 largest revisions reduced reserves by 80 mmboe evaluations of jackfish bitumen reserves.
 40 mmboe revisions recorded for u.
 properties reduction of approximately 27 mmboe represents reserves devon not expect to develop in next five years including 20 mmboe attributable to eagle ford.
 significant amount of devon 2019s proved undeveloped reserves at end of 2015 related to jackfish operations.
 at december 31 , 2015 and 2014  devon 2019s jackfish proved undeveloped reserves were 301 mmboe and 384 mmboe.
 development schedules for jackfish reserves controlled by need keep processing plants at 35 mbbl daily facility capacity.
 processing plant capacity controlled by total steam processing capacity steam-oil ratios.
 development of projects involves construction of steam injection/distribution bitumen processing facilities.
due to large up-front capital investments large reserves required to provide economic returns project conditions meet circumstances requiring period greater than 5 years for conversion to developed reserves.
 these reserves classified as proved undeveloped for more than five years.
 development schedule for reserves extends through to 2030.
 at end of 2015  approximately 184 mmboe of proved undeveloped reserves at jackfish remained undeveloped for five years or more since initial booking.
 no other projects have proved undeveloped reserves remained undeveloped more than five years from initial booking reserves.
 approximately 180 mmboe of proved undeveloped reserves at jackfish will require five years  from date filing to develop.
 price revisions 2015 2013 reserves decreased 302 mmboe due to lower commodity prices across all products.
 lower bitumen price increased canadian reserves due to decline in royalties increases devon 2019s after- royalty volumes.
 2014 2013 reserves increased 9 mmboe due to higher gas prices in barnett shale anadarko basin offset by higher bitumen prices in lower after-royalty volumes  in canada.

| u.s .        | canada     | total
-------------------------------------------------- | ------------ | ---------- | ------------
proved undeveloped reserves as of december 31 2014 | 305          | 384        | 689
extensions and discoveries                         | 13           | 11         | 24
revisions due to prices                            | -115 ( 115 ) | 80         | -35 ( 35 )
revisions other than price                         | -40 ( 40 )   | -80 ( 80 ) | -120 ( 120 )
conversion to proved developed reserves            | -88 ( 88 )   | -94 ( 94 ) | -182 ( 182 )
proved undeveloped reserves as of december 31 2015 | 75           | 301        | 376


american tower corporation and subsidiaries notes to consolidated financial statements 2014 continued ) term of economic rights agreement is seventy years ; tv azteca has right to purchase at fair market value economic rights from company any time during last fifty years of agreement.
 should tv azteca elect to purchase economic rights ( whole or part ) obligated to repay proportional amount of loan discussed above at time election.
 company 2019s obligation to pay tv azteca $ 1. 5 million annually reduced proportionally.
 company accounted for annual payment of $ 1. 5 million as capital lease ( initially recording asset and corresponding liability of approximately $ 18. 6 million ).
 capital lease asset and discount on note  aggregate approximately $ 30. 2 million  represent cost to acquire economic rights amortized over seventy-year life of economic rights agreement.
 quarterly basis company assesses recoverability of note receivable from tv azteca.
 as of december 31 , 2005 and 2004  company assessed recoverability note receivable tv azteca concluded no adjustment to carrying value required.
 executive officer and former director of company served as director of tv azteca from december 1999 to february 2006.
 december 31 2005 2004 company had other long-term notes receivable outstanding of approximately $ 11. 1 million and $ 11. 2 million , respectively.
 7.
 financing arrangements outstanding amounts under company 2019s long-term financing arrangements consisted of following as of december 31 , ( in thousands ) :.
 new credit facilities 2014in october 2005  company refinanced two existing credit facilities of principal operating subsidiaries.
 company replaced existing american tower $ 1. 1 billion senior secured credit facility with new $ 1. 3 billion senior secured credit facility replaced existing spectrasite $ 900. 0 million senior secured credit facility with new $ 1.15 billion senior secured credit facility.
 result of repayment previous credit facilities , company recorded net loss on retirement of long-term obligations of $ 9. 8 million in fourth quarter 2005.

| 2005               | 2004
------------------------------------------------------------------------ | ------------------ | ------------------
american tower credit facility                                           | $ 793000           | $ 698000
spectrasite credit facility                                              | 700000             |
senior subordinated notes                                                | 400000             | 400000
senior subordinated discount notes net of discount and warrant valuation | 160252             | 303755
senior notes net of discount and premium                                 | 726754             | 1001817
convertible notes net of discount                                        | 773058             | 830056
notes payable and capital leases                                         | 60365              | 59986
total                                                                    | 3613429            | 3293614
less current portion of other long-term obligations                      | -162153 ( 162153 ) | -138386 ( 138386 )
long-term debt                                                           | $ 3451276          | $ 3155228


performance graph graph compares cumulative total shareholder return on pmi's common stock with cumulative total return for same period of pmi's peer group and s&p 500 index.
 graph assumes investment of $ 100 as of december 31 , 2013 in pmi common stock ( at prices quoted on new york stock exchange ) and each indices as of market close and reinvestment of dividends on quarterly basis.
 pmi pmi peer group ( 1 ) s&p 500 index.
 ( 1 ) pmi peer group in graph is same as used in prior year.
 pmi peer group established based on review of four characteristics : global presence ; focus on consumer products ; net revenues market capitalization of similar size to pmi.
 review considered primary international tobacco companies.
 result of review following companies constitute pmi peer group : altria group , inc. anheuser-busch inbev sa/nv, british american tobacco p. coca-cola company , colgate-palmolive co.  diageo plc , heineken n. v. imperial brands plc  japan tobacco inc. johnson & johnson, kimberly-clark corporation  kraft-heinz company , mcdonald's corp. mondel z international , inc. nestl e9 s. pepsico , inc. procter & gamble company  roche holding ag  unilever nv and plc.
 : figures are rounded to nearest $ 0. 10.

date             | pmi      | pmi peer group ( 1 ) | s&p 500 index
---------------- | -------- | -------------------- | -------------
december 31 2013 | $ 100.00 | $ 100.00             | $ 100.00
december 31 2014 | $ 97.90  | $ 107.80             | $ 113.70
december 31 2015 | $ 111.00 | $ 116.80             | $ 115.30
december 31 2016 | $ 120.50 | $ 118.40             | $ 129.00
december 31 2017 | $ 144.50 | $ 140.50             | $ 157.20
december 31 2018 | $ 96.50  | $ 127.70             | $ 150.30


company stock performance graph shows five-year comparison of cumulative total shareholder return calculated on dividend reinvested basis for company  s&p 500 composite index s&p computer hardware index  dow jones u. s.
 technology index.
 graph assumes $ 100 invested in each company 2019s common stock  s&p 500 composite index s&p computer hardware index dow jones u. s.
 technology index on september 30 , 2006.
 data points on graph are annual.
 historic stock price performance not indicative of future stock price performance.
 comparison of 5 year cumulative total return* among apple inc. s&p 500 index s&p computer hardware index dow jones us technology index sep-10sep-09sep-08sep-07sep-06 sep-11 apple inc.
 s&p 500 s&p computer hardware dow jones us technology *$ 100 invested on 9/30/06 in stock or index  including reinvestment of dividends.
 fiscal year ending september 30.
 copyright a9 2011 s&p , division of mcgraw-hill companies inc.
 all rights reserved.
 copyright a9 2011 dow jones & co.
 all rights reserved.
 september 30 , september 30 .

| september 30 2006 | september 30 2007 | september 30 2008 | september 30 2009 | september 30 2010 | september 30 2011
----------------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | -----------------
apple inc .             | $ 100             | $ 199             | $ 148             | $ 241             | $ 369             | $ 495
s&p 500                 | $ 100             | $ 116             | $ 91              | $ 85              | $ 93              | $ 94
s&p computer hardware   | $ 100             | $ 148             | $ 124             | $ 147             | $ 174             | $ 197
dow jones us technology | $ 100             | $ 123             | $ 94              | $ 104             | $ 117             | $ 120


news corporation notes consolidated financial statements as of june 30 , 2016  company had income tax net operating loss carryforwards ( nols ) ( gross  net of uncertain tax benefits )  in various jurisdictions : jurisdiction expiration amount ( in millions ).
 utilization of nols dependent on generating sufficient taxable income from operations in respective jurisdictions nols relate  taking account limitations restrictions on ability to use them.
 certain u. s.
 federal nols acquired as part of acquisitions of move and harlequin subject to limitations under section 382 of code.
 section 382 code limits amount of acquired nols can use annual basis to offset future u. s.
 consolidated taxable income.
 nols subject to review by relevant tax authorities in jurisdictions relate.
 company recorded deferred tax asset of $ 580 million and $ 540 million ( net of approximately $ 53 million and $ 95 million  of unrecognized tax benefits ) associated with nols as of june 30, 2016 and 2015 .
 significant judgment applied in assessing ability to realize nols and other tax assets.
 management assesses available positive and negative evidence to estimate if sufficient future taxable income generated to utilize existing deferred tax assets within applicable expiration period.
 basis evaluation valuation allowances of $ 97 million and $ 304 million established to reduce deferred tax asset associated with company 2019s nols to amount more likely than not be realized as of june 30 , 2016 and 2015 .
 amount of nol deferred tax asset considered realizable could be adjusted if estimates of future taxable income during carryforward period reduced or if objective negative evidence in form of cumulative losses occurs.
 as of june 30 , 2016  company had approximately $ 1. 6 billion and $ 1.7 billion capital loss carryforwards in australia and u. k.  may be carried forward indefinitely subject to tax authority review.
 realization of capital losses dependent on generating capital gain taxable income satisfying continuity of business requirements.
 company recorded deferred tax asset of $ 803 million and $ 892 million as of june 30, 2016 2015  for these capital loss carryforwards more likely not company will not generate capital gain income in normal course business in these jurisdictions.
 valuation allowances of $ 803 million and $ 892 million established to reduce capital loss carryforward deferred tax asset to amount more likely than not be realized as of june 30 , 2016 and 2015 .
 as of june 30 , 2016  company had approximately $ 26 million of u. s.
 federal tax credit carryforward includes $ 22 million of foreign tax credits $ 4 million research & development credits expire in 2025 and 2036 .
 as of june 30, 2016  company had approximately $ 5 million of non-u. s.
 tax credit carryforwards expire in various amounts beginning in 2025 $ 8 million of state tax credit carryforwards ( net of.
 federal benefit ) balance can be carried forward indefinitely.
 accordance with company 2019s accounting policy valuation allowance of $ 5 million established to reduce deferred tax asset associated with company 2019s non-u. s.
 state credit carryforwards to amount more likely than not be realized as of june 30 , 2016.

jurisdiction  | expiration   | amount ( in millions )
------------- | ------------ | ----------------------
u.s . federal | 2021 to 2036 | $ 858
u.s . states  | various      | 581
australia     | indefinite   | 452
u.k .         | indefinite   | 134
other foreign | various      | 346


. s.
 equity securities and international equity securities categorized as level 1 traded on active national international exchanges valued at closing prices on last trading day of year.
 for.
 equity securities not traded on active exchange or if closing price not available trustee obtains indicative quotes from pricing vendor  broker or investment manager.
 securities categorized as level 2 if custodian obtains corroborated quotes from pricing vendor or categorized level 3 if custodian obtains uncorroborated quotes from broker or investment manager.
 commingled equity funds are investment vehicles valued using net asset value ( nav ) provided by fund managers.
 nav is total value of fund divided by number of shares outstanding.
 funds categorized as level 1 if traded at nav on nationally recognized securities exchange or categorized level 2 if nav corroborated by observable market data (. purchases or sales activity ) able to redeem investment in near-term.
 fixed income investments categorized as level 2 valued by trustee using pricing models use verifiable observable market data (. interest rates yield curves observable commonly quoted intervals credit spreads ) bids provided by brokers or dealers or quoted prices of securities with similar characteristics.
 fixed income investments categorized at level 3 when valuations using observable inputs unavailable.
 trustee obtains pricing based on indicative quotes or bid evaluations from vendors brokers or investment manager.
 private equity funds  real estate funds hedge funds valued using nav based on valuation models of underlying securities generally include significant unobservable inputs cannot be corroborated using verifiable observable market data.
 valuations for private equity funds real estate funds determined by general partners.
depending on nature assets general partners may use various valuation methodologies including income and market approaches.
 market approach consists analyzing market transactions for comparable assets income approach uses earnings or net present value of estimated future cash flows adjusted for liquidity and risk factors.
 hedge funds valued by independent administrators using various pricing sources models based on nature of securities.
 private equity funds , real estate funds and hedge funds generally categorized as level 3 as cannot fully redeem investment in near-term.
 commodities traded on active commodity exchange valued at closing prices on last trading day of year.
 contributions expected benefit payments funding of qualified defined benefit pension plans determined in accordance with erisa , amended by ppa  consistent with cas and internal revenue code rules.
 in 2014  made contributions of $ 2. 0 billion related to qualified defined benefit pension plans.
 do not plan to make contributions to benefit pension plans in 2015 through 2017 because none required using current assumptions.
 table presents estimated future benefit payments  reflect expected future employee service  as of december 31 , 2014 ( in millions ) :.
 defined contribution plans maintain number defined contribution plans most with 401 ( k ) features cover substantially all employees.
 under provisions 401 plans match most employees 2019 eligible contributions at rates specified in plan documents.
 contributions were $ 385 million in 2014 , $ 383 million in 2013 and $ 380 million in 2012  majority funded in common stock.
 defined contribution plans held approximately 41. 7 million and 44. 7 million shares of common stock as of december 31 , 2014 and 2013.
 stockholders 2019 equity at december 31 , 2014 and 2013 authorized capital was of 1. 5 billion shares of common stock and 50 million shares of series preferred stock.
316 million shares common stock issued outstanding as of december 31 , 2014 , 314 million shares considered outstanding for balance sheet presentation purposes remaining

| 2015   | 2016   | 2017   | 2018   | 2019   | 2020 - 2024
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | -----------
qualified defined benefit pension plans  | $ 2070 | $ 2150 | $ 2230 | $ 2320 | $ 2420 | $ 13430
retiree medical and life insurance plans | 190    | 200    | 200    | 210    | 210    | 1020


grant date fair value of options estimated using black-scholes option-pricing model.
 weighted-average assumptions used in valuations for 2017  2016 2015 are : risk-free interest rate  based on.
 treasury yields  1. 7 percent  1. 9 percent 1. 9 percent ; dividend yield , 3. 6 percent  3. 8 percent 3. 1 percent expected volatility  based on historical volatility 24 percent  27 percent 28 percent.
 expected life of each option is seven years based on historical experience future exercise patterns.
 perfo rmance shares restricted stock units company 2019s incentive shares plans include performance shares awards distribute value of common stock to key management employees subject to certain operating performance conditions restrictions.
 form of distribution is primarily shares of common stock portion in cash.
 compensation expense for performance shares recognized over service period based on number of shares expected to be earned.
 performance shares awards accounted for as liabilities in accordance with asc 718 , compensation 2013 stock compensation  compensation expense adjusted at end of each reporting period to reflect change in fair value of awards.
 as of september 30 , 2016  4944575 performance shares awarded primarily in 2013 were outstanding contingent on company achieving performance objectives through 2016 provision of additional service by employees.
 objectives for shares met at 86 percent level at end of 2016  or 4252335 shares.
 2549083 shares distributed in early 2017 1393715 issued as shares 944002 withheld for income taxes value of 211366 paid in cash.
 additional 1691986 shares distributed end of 2017 to employees who provided one additional year of service 1070264 issued as shares 616734 withheld for income taxes value of 4988 paid in cash.
11266 shares canceled not distributed.
 rights to receive maximum of 2388125 and 2178388 common shares awarded in 2017 and 2016 under new performance shares program outstanding contingent upon company achieving performance objectives through 2019 and 2018.
 incentive shares plans include restricted stock awards distribution of common stock to key management employees subject to cliff vesting at end of service periods from three to ten years.
 fair value of restricted stock awards determined based on average high and low market prices of company 2019s common stock on date of grant compensation expense recognized ratably over applicable service period.
 in 2017  130641 shares of restricted stock vested participants fulfilling service requirements.
 84398 shares issued 46243 shares withheld for income taxes minimum withholding requirements.
 as of september 30 , 2017 1194500 shares of unvested restricted stock outstanding.
 total fair value of shares vested under incentive shares plans was $ 245 , $ 11 $ 9  in 2017 , 2016 2015  $ 101 , $ 4 $ 5 paid in cash for tax withholding.
 as of september 30 , 2017  12. 9 million shares remained available for award under incentive shares plans.
 changes in shares outstanding but not yet earned under incentive shares plans during year ended september 30 , 2017 follow ( shares in thousands ) : average grant date shares fair value per share.
 total compensation expense for stock options and incentive shares was $ 115 , $ 159 and $ 30 for 2017 , 2016 2015  $ 5 , $ 14 $ 6 included in discontinued operations.
 decrease in expense for 2017 reflects impact changes in stock price.
 increase in expense for 2016 reflects increasing stock price in current year compared with decreasing price in 2015 overlap of awards.
income tax benefits in statement for compensation arrangements during 2017  2016 2015 were $ 33 , $ 45 $ 2 , respectively.
 as of september 30 , 2017  total unrecognized compensation expense to unvested shares awarded under plans was $ 149 , expected to be recognized over 1. 5 years.
 addition to employee stock option incentive shares plans in 2017 company awarded 17984 shares restricted stock 2248 restricted stock units under stock plan for non-management directors.
 as of september 30 , 2017 174335 shares available for issuance under plan.

| shares         | average grant datefair value per share
----------------- | -------------- | --------------------------------------
beginning of year | 7328           | $ 49.17
granted           | 2134           | $ 51.91
earned/vested     | -4372 ( 4372 ) | $ 49.14
canceled          | -91 ( 91 )     | $ 51.18
end of year       | 4999           | $ 50.33


contributions expected benefit payments funding of qualified defined benefit pension plans determined in accordance with erisa , amended by ppa  consistent with cas internal revenue code rules.
 in 2015 made $ 5 million contributions to new sikorsky bargained qualified defined benefit pension plan plan to make approximately $ 25 million contributions in 2016.
 table presents estimated future benefit payments reflect expected future employee service  as of december 31 , 2015 ( in millions ) :.
 defined contribution plans maintain defined contribution plans most with 401 ( k ) features cover all employees.
 under provisions 401 k ) plans match most employees 2019 eligible contributions at rates specified in plan documents.
 contributions were $ 393 million in 2015  $ 385 million in 2014 $ 383 million in 2013 majority funded in common stock.
 defined contribution plans held approximately 40. 0 million and 41. 7 million shares of common stock as of december 31 , 2015 and 2014.
 note 12 2013 stockholders 2019 equity at december 31 , 2015 2014 authorized capital of 1. 5 billion shares of common stock 50 million shares of series preferred stock.
 305 million shares of common stock issued outstanding as of december 31, 2015  303 million shares considered outstanding for balance sheet presentation purposes remaining shares held in separate trust.
 316 million shares of common stock issued outstanding as of december 31 , 2014, 314 million shares considered outstanding for balance sheet presentation purposes remaining shares held in separate trust.
 no shares of preferred stock issued and outstanding at december 31 , 2015 or 2014.
 repurchases of common stock during 2015 repurchased 15. 2 million shares common stock for $ 3. 1 billion.
 during 2014 and 2013 paid $ 1. 9 billion and $ 1. 8 billion to repurchase 11. 5 million and 16.2 million shares common stock.
 on september 24 , 2015 board of directors approved $ 3. 0 billion increase to share repurchase program.
 inclusive increase total remaining authorization for future common share repurchases program was $ 3. 6 billion as of december 31 , 2015.
 repurchase common shares reduce common stock for $ 1 of par value shares repurchased excess purchase price over par value recorded as reduction of additional paid-in capital.
 due to volume repurchases under share repurchase program additional paid-in capital reduced to zero remainder excess purchase price over par value of $ 2. 4 billion and $ 1. 1 billion recorded as reduction of retained earnings in 2015 and 2014.
 paid dividends totaling $ 1. 9 billion ( $ 6. 15 per share ) in 2015, $ 1. 8 billion ( $ 5. 49 per share ) in 2014 $ 1. 5 billion ( $ 4. 78 per share ) in 2013.
 increased quarterly dividend rate in each last three years including 10% ( 10 % ) increase quarterly dividend rate fourth quarter of 2015.
 declared quarterly dividends of $ 1. 50 per share each first three quarters of 2015 $ 1. 65 per share fourth quarter of 2015 ; $ 1. 33 per share first three quarters of 2014 $ 1. 50 per share fourth quarter of 2014 ; $ 1. 15 per share each first three quarters of 2013 $ 1. 33 per share during fourth quarter of 2013.

| 2016   | 2017   | 2018   | 2019   | 2020   | 2021 - 2025
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | -----------
qualified defined benefit pension plans  | $ 2160 | $ 2240 | $ 2320 | $ 2410 | $ 2500 | $ 13670
retiree medical and life insurance plans | 190    | 190    | 200    | 200    | 200    | 940


notes to audited consolidated financial statements director stock compensation subplan eastman's 2016 director stock compensation subplan "directors' subplan ) component of 2012 omnibus plan  remains in effect until terminated by board of directors or earlier termination 2012 omnibus plan.
 directors' subplan provides for structured awards of restricted shares to non-employee members board of directors.
 restricted shares awarded subject to same terms and conditions of 2012 omnibus plan.
 not separate source of shares for grant of equity awards all shares awarded part of 10 million shares authorized under 2012 omnibus plan.
 shares of restricted stock granted on first day of non-f employee director's initial term of service shares restricted stock granted each year to each non-employee director on date of annual meeting of stockholders.
 company authorized by board of directors under 2012 omnibus plan tof provide awards to employees and non- employee members board of directors.
 company's practice to issue new shares treasury shares for equity awards require settlement by issuance of common stock to withhold or accept back shares awarded to cover related income tax obligations of employee participants.
 shares of unrestricted common stock owned by non-d employee directors not eligible to be withheld or acquired to satisfy withholding obligation related to income taxes.
 shares of unrestricted common stock owned by specified senior management level employees accepted by company to pay exercise price of stock options in accordance with terms and conditions of awards.
2016 , 2015  2014  total share-based compensation expense ( before tax ) of approximately $ 36 million , $ 36 million  and $ 28 million  recognized in selling  general administrative exd pense in consolidated statements of earnings  comprehensive income retained earnings for all share-based awards approximately $ 7 million , $ 7 million  $ 4 million  related to stock options.
 compensation expense recognized over substantive vesting period may shorter time period than stated vesting period for qualifying termination eligible employees defined in forms award notice.
 for 2016 , 2015  2014  approximately $ 2 million , $ 2 million  $ 1 million  of stock option compensation expense recognized due to qualifying termination eligibility preceding requisite vesting period.
 stock option awards options granted annual basis to non-employee directors under directors' subplan predecessor plans compensation and management development committee of board of directors under 2012 omnibus plan predecessor plans to employees.
 option awards have exercise price equal to closing price of company's stock on date of grant.
 term of options is 10 years with vesting periods up to three years.
 vesting usually occurs ratably over vesting period or at end of vesting period.
 company utilizes black scholes merton option valuation model relies on certain assumptions to estimate option's fair value.
 weighted average assumptions used in determination of fair value for stock options awarded in 2016 , 2015 , 2014 provided in table below:.

assumptions                     | 2016               | 2015               | 2014
------------------------------- | ------------------ | ------------------ | ------------------
expected volatility rate        | 23.71% ( 23.71 % ) | 24.11% ( 24.11 % ) | 25.82% ( 25.82 % )
expected dividend yield         | 2.31% ( 2.31 % )   | 1.75% ( 1.75 % )   | 1.70% ( 1.70 % )
average risk-free interest rate | 1.23% ( 1.23 % )   | 1.45% ( 1.45 % )   | 1.44% ( 1.44 % )
expected term years             | 5.0                | 4.8                | 4.7


entergy corporation subsidiaries notes financial statements amount ( in millions ).
 subsequent closing  entergy received approximately $ 6 million from consumers energy company post-closing adjustment in asset sale agreement.
 post-closing adjustment resulted in approximately $ 6 million reduction in plant reduction in other liabilities.
 for ppa  at below-market prices at time acquisition non-utility nuclear will amortize liability to revenue over life agreement.
 amount amortized each period based upon difference between present value calculated at date acquisition each year's difference between revenue under agreement and revenue estimated market prices.
 amounts amortized to revenue were $ 53 million in 2009  $ 76 million in 2008  $ 50 million in 2007.
 amounts amortized to revenue for next five years $ 46 million for 2010  $ 43 million for 2011  $ 17 million in 2012 $ 18 million for 2013  $ 16 million for 2014.
 nypa value sharing agreements non-utility nuclear's purchase of fitzpatrick indian point 3 plants from nypa included value sharing agreements with nypa.
 october 2007  non-utility nuclear nypa amended restated value sharing agreements to clarify amend provisions original terms.
 amended value sharing agreements non-utility nuclear will make annual payments to nypa based on generation output of indian point 3 fitzpatrick plants from january 2007 through december 2014.
 non-utility nuclear pay nypa $ 6. 59 per mwh for power sold from indian point 3 up to annual cap of $ 48 million $ 3. 91 per mwh for power sold from fitzpatrick  up to annual cap of $ 24 million.
 annual payment for each year's output due by january 15 following year.
 non-utility nuclear will record liability for payments to nypa as power generated sold by indian point 3 fitzpatrick.
amount equal to liability recorded to plant asset account as contingent purchase price consideration for plants.
 in 2009 , 2008  2007 , non-utility nuclear recorded $ 72 million as plant for generation during each those years.
 amount depreciated over expected remaining useful life of plants.
 in august 2008 , non-utility nuclear entered into resolution of dispute with nypa over applicability of value sharing agreements to fitzpatrick and indian point 3 nuclear power plants after planned spin-off of non-utility nuclear business.
 under resolution  non-utility nuclear agreed not to treat separation as "cessation event" terminate obligation to make payments under value sharing agreements.
 after spin-off transaction  enexus continue to obligated to make payments to nypa under amended and restated value sharing agreements.

| amount ( in millions )
------------------------------------------ | ----------------------
plant ( including nuclear fuel )           | $ 727
decommissioning trust funds                | 252
other assets                               | 41
total assets acquired                      | 1020
purchased power agreement ( below market ) | 420
decommissioning liability                  | 220
other liabilities                          | 44
total liabilities assumed                  | 684
net assets acquired                        | $ 336


table of contents totaled absolute notional equivalent of $ 292. 3 million and $ 190. 5 million  respectively year-over-year increase primarily driven by earnings growth.
 we do not hedge long-term investment exposures.
 not use foreign exchange contracts for speculative trading purposes nor hedge foreign currency exposure in entirely offsets effects of changes in foreign exchange rates.
 regularly review hedging program assess need to utilize financial instruments to hedge currency exposures ongoing basis.
 cash flow hedging 2014hedges of forecasted foreign currency revenue may use foreign exchange purchased options or forward contracts to hedge foreign currency revenue denominated in euros, british pounds japanese yen.
 hedge these cash flow exposures to reduce risk earnings and cash flows adversely affected by changes in exchange rates.
 foreign exchange contracts  carried at fair value may have maturities between one and twelve months.
 enter into foreign exchange contracts to hedge forecasted revenue in normal course of business not speculative in nature.
 record changes in intrinsic value of cash flow hedges in accumulated other comprehensive income ( loss ) until forecasted transaction occurs.
 when forecasted transaction occurs reclassify related gain or loss on cash flow hedge to revenue.
 in event forecasted transaction not occur  or probable not occur, reclassify gain or loss on related cash flow hedge from accumulated other comprehensive income ( loss ) to interest and other income , net on consolidated statements of income.
 for fiscal year ended november 30 , 2018  no net gains or losses recognized in other income relating to hedges of forecasted transactions that did not occur.
balance sheet hedging 2014hedging of foreign currency assets liabilities hedge exposures related to net recognized foreign currency assets liabilities with foreign exchange forward contracts to reduce risk earnings cash flows affected by changes in foreign currency exchange rates.
 foreign exchange contracts carried at fair value with changes fair value recorded as interest other income  net.
 foreign exchange contracts not subject us to material balance sheet risk due to exchange rate movements gains losses on contracts to offset gains losses on assets liabilities hedged.
 at november 30 , 2018  outstanding balance sheet hedging derivatives had maturities of 180 days or less.
 see note 5 notes to consolidated financial statements for information hedging activities.
 interest rate risk short-term investments fixed income securities at november 30 , 2018 had debt securities classified as short-term investments of $ 1. 59 billion.
 changes in interest rates could adversely affect market value of these investments.
 table separates investments based on stated maturities to show approximate exposure to interest rates ( in millions ) :.
 sensitivity analysis performed on investment portfolio as of november 30 , 2018.
 analysis based on estimate of hypothetical changes in market value portfolio from immediate parallel shift in yield curve of various magnitudes.

due within one year             | $ 612.1
------------------------------- | --------
due between one and two years   | 564.2
due between two and three years | 282.2
due after three years           | 127.7
total                           | $ 1586.2


decreased production volume final aircraft deliveries completed second quarter 2012 $ 50 million from favorable resolution contractual matter second quarter 2012 ; $ 270 million for other programs ( primarily sustainment activities ) due to decreased volume.
 decreases partially offset by higher net sales $ 295 million for f-35 production contracts due to increased production volume risk retirements ; $ 245 million for c-5 program due to increased aircraft deliveries ( six aircraft delivered in 2013 compared to four 2012 ) other modernization activities $ 70 million for f-35 development contract due to increased volume.
 aeronautics 2019 operating profit for 2013 decreased $ 87 million  or 5% ( 5 % )  compared to 2012.
 decrease primarily attributable to lower operating profit $ 85 million for f-22 program includes approximately $ 50 million from favorable resolution contractual matter second quarter 2012 $ 35 million due to decreased risk retirements production volume ; $ 70 million for c-130 program due to lower risk retirements fewer deliveries offset by increased sustainment activities ; $ 65 million for c-5 program due to reducing profit booking rate third quarter 2013 lower risk retirements $ 35 million for f-16 program to fewer aircraft deliveries offset by increased sustainment activity aircraft configuration mix.
 decreases partially offset by higher operating profit approximately $ 180 million for f-35 production contracts due to increased risk retirements volume.
 operating profit comparable for f-35 development contract included adjustments of approximately $ 85 million to reflect impacts of downward revisions to profit booking rate in 2013 and 2012.
 adjustments not related to volume including net profit booking rate adjustments other matters approximately $ 75 million lower for 2013 compared backlog backlog decreased slightly in 2014 compared to 2013 primarily due to lower orders on f-16 and f-22 programs.
backlog decreased in 2013 compared to 2012 mainly due to lower orders on f-16 , c-5 c-130 programs partially offset by higher orders on f-35 program.
 expect aeronautics 2019 2015 net sales comparable or slightly behind 2014 due to decline in f-16 deliveries decline in f-35 development activity offset by increase in production contracts.
 operating profit expected to decrease in low single digit range due primarily to contract mix slight decrease in operating margins between years.
 information systems & global solutions is&gs business segment provides advanced technology systems expertise  integrated information technology solutions management services across broad spectrum applications for civil  defense  intelligence other government customers.
 is&gs has portfolio of many smaller contracts.
 impacted by downturn in federal agencies 2019 information technology budgets increased re-competition on existing contracts fragmentation of large contracts into smaller contracts awarded primarily on basis price.
 is&gs 2019 operating results included ( in millions ) :.
 2014 compared to 2013 is&gs 2019 net sales decreased $ 579 million  or 7% ( 7 % )  for 2014 compared to 2013.
 decrease attributable to lower net sales of about $ 645 million for 2014 due to wind-down or completion of certain programs by reductions in direct warfighter support ( including jieddo ptds ) defense budgets tied to command and control programs ; approximately $ 490 million for 2014 due to decline in volume for ongoing programs lower funding levels programs impacted by in-theater force reductions.
 decreases partially offset by higher net sales of about $ 550 million for 2014 due to start-up of new programs  growth in recently awarded programs integration of recently acquired companies.

| 2014           | 2013           | 2012
------------------- | -------------- | -------------- | --------------
net sales           | $ 7788         | $ 8367         | $ 8846
operating profit    | 699            | 759            | 808
operating margins   | 9.0% ( 9.0 % ) | 9.1% ( 9.1 % ) | 9.1% ( 9.1 % )
backlog at year-end | $ 8700         | $ 8300         | $ 8700


reinsurance commissions  fees revenue increased 1% ( 1 % ) driven by favorable foreign currency translation of 2% ( 2 % ) partially offset by 1% ( 1 % ) decline in dispositions  net acquisitions other.
 organic revenue flat from strong growth in capital market transactions advisory business partially offset by declines in global facultative placements.
 operating income increased $ 120 million  or 10% ( 10 % )  from 2010 to $ 1. 3 billion in 2011.
 2011 operating income margins were 19. 3% ( 19. 3 % )  up 70 basis points from 18. 6% ( 18. 6 % ) in 2010.
 operating margin improvement driven by revenue growth reduced costs of restructuring initiatives realization benefits restructuring plans partially offset by negative impact of expense increases related to investment business lease termination costs legacy receivables write-off  foreign currency exchange rates.
 hr solutions.
 in october 2010 completed acquisition of hewitt  world leading human resource consulting outsourcing companies.
 hewitt operates globally together with aon 2019s existing consulting outsourcing operations under newly created aon hewitt brand.
 hewitt 2019s operating results included in aon 2019s results of operations beginning october 1 , 2010.
 hr solutions segment generated 40% ( 40 % ) of consolidated total revenues in 2011 provides broad range of human capital services 2022 health and benefits advises clients about structure fund administer employee benefit programs attract retain motivate employees.
 benefits consulting includes health and welfare  executive benefits  workforce strategies productivity  absence management  benefits administration  data-driven health  compliance  employee commitment  investment advisory elective benefits services.
 effective january 1 , 2012 line of business included in results of risk solutions segment.
2022 retirement specializes in global actuarial services defined contribution consulting investment consulting tax erisa consulting pension administration.
 2022 compensation focuses on compensatory advisory/counsel including compensation planning design executive reward strategies salary survey benchmarking market share studies sales force effectiveness special expertise in financial services technology industries.
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years ended december 31, | 2011             | 2010             | 2009
------------------------ | ---------------- | ---------------- | ----------------
revenue                  | $ 4501           | $ 2111           | $ 1267
operating income         | 448              | 234              | 203
operating margin         | 10.0% ( 10.0 % ) | 11.1% ( 11.1 % ) | 16.0% ( 16.0 % )


$ 190 million or 30% ( 30 % ) of pre-tax earnings before equity earnings.
 during 2009 second quarter evaluation of company 2019s etienne mill in france company determined future realization of previously recorded deferred tax assets in france including net operating loss carryforwards no longer met 201cmore likely not 201d standard for asset recognition.
 charge of $ 156 million before and after taxes recorded to establish valuation allowance for 100% ( 100 % ) of these assets.
 in 2009  result of agree- ments on 2004 and 2005.
 federal income tax audits  related state income tax effects $ 26 million credit recorded.
 2008 income tax provision of $ 162 million included $ 207 million benefit related to special items $ 175 million tax benefit related to restructuring and other charges $ 23 mil- lion tax benefit for impairment of certain non-u. s.
 assets $ 29 million tax expense for.
 taxes on gain in company 2019s joint venture $ 40 million tax benefit related to restructuring of company 2019s international operations $ 2 mil- lion other expense.
 excluding impact spe- cial items tax provision was $ 369 million  or 31. 5% ( 31. 5 % ) of pre-tax earnings before equity earnings.
 company recorded income tax provision for 2007 of $ 415 million including $ 41 million benefit related to effective settlement of tax audits $ 8 million of other tax benefits.
 excluding impact of special items tax provision was $ 423 million or 30% ( 30 % ) of pre-tax earnings before equity earnings.
 international paper has.
 federal and non-u. s.
net operating loss carryforwards approximately $ 452 million expire 2010 through 2019 2013 $ 8 million  2020 through 2029 2013 $ 29 million indefinite carryforwards $ 415 million.
 international paper has tax benefits from net operating loss carryforwards for state taxing jurisdictions approx $ 204 million expire 2010 through 2019 2013 $ 75 million 2020 through 2029 2013 $ 129 million.
 international paper has approx $ 273 million of.
 federal  non-u.
 state tax credit carryforwards expire 2010 through 2019 2013 $ 54 million  2020 through 2029 2013 $ 32 million indefinite carryforwards 2013 $ 187 mil- lion.
 international paper has $ 2 million state capital loss carryforwards expire 2010 through 2019.
 deferred income taxes not provided for tempo- rary differences approximately $ 3. 5 billion , $ 2. 6 billion and $ 3. 7 billion as of december 31 , 2009 , 2008 2007  representing earnings of non-u.
 subsidiaries intended to be permanently reinvested.
 computation of potential deferred tax liability with undistributed earnings basis differences not practicable.
 note 11 commitments contingent liabilities certain property , machinery equipment leased under cancelable and non-cancelable agree- ments.
 unconditional purchase obligations entered into in ordinary course of business for capital projects purchase of pulpwood , logs wood chips  raw materials  energy services including fiber supply agree- ments to purchase pulpwood entered into concurrently with company 2019s 2006 trans- formation plan forestland sales.
december 31 , 2009  total future minimum commitments under existing non-cancelable operat- ing leases purchase obligations were : in millions 2010 2011 2012 2013 2014 thereafter obligations $ 177 $ 148 $ 124 $ 96 $ 79 $ 184 purchase obligations ( a ) 2262 657 623 556 532 3729.
 ) includes $ 2. 8 billion to fiber supply agreements at company 2019s 2006 transformation plan forestland sales.
 rent expense was $ 216 million , $ 205 million $ 168 million for 2009 , 2008 2007 , respectively.
 connection with sales of businesses , property  equipment  forestlands other assets , interna- tional paper makes representations warranties relating to businesses assets  may agree to indemnify buyers tax environmental liabilities  breaches of representations warranties other matters.
 where liabilities for matters probable subject to reasonable estimation  accrued liabilities recorded at time of sale as cost of transaction.
 may 2008  recovery boiler at company 2019s vicksburg , mississippi facility exploded resulting in one fatality injuries to employees contractors

in millions                | 2010   | 2011  | 2012  | 2013  | 2014  | thereafter
-------------------------- | ------ | ----- | ----- | ----- | ----- | ----------
lease obligations          | $ 177  | $ 148 | $ 124 | $ 96  | $ 79  | $ 184
purchase obligations ( a ) | 2262   | 657   | 623   | 556   | 532   | 3729
total                      | $ 2439 | $ 805 | $ 747 | $ 652 | $ 611 | $ 3913


supplementary information on oil gas producing activities unaudited ) summary of changes in standardized measure discounted future net cash flows relating to proved oil gas reserves ( in millions ) 2004 2003 2002 sales transfers of oil gas produced  net of production  transportation administrative costs $ ( 2715 ) $ ( 2487 ) $ ( 1983 ) net changes in prices production transportation administrative costs related to future production 950 1178 2795.

( in millions )                                                                                | 2004             | 2003             | 2002
--------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
sales and transfers of oil and gas produced net of production transportation and administrative costs     | $ -2715 ( 2715 ) | $ -2487 ( 2487 ) | $ -1983 ( 1983 )
net changes in prices and production transportation and administrative costs related to future production | 950              | 1178             | 2795
extensions discoveries and improved recovery less related costs                                           | 1352             | 618              | 1032
development costs incurred during the period                                                              | 711              | 802              | 499
changes in estimated future development costs                                                             | -556 ( 556 )     | -478 ( 478 )     | -297 ( 297 )
revisions of previous quantity estimates                                                                  | 494              | 348              | 311
net changes in purchases and sales of minerals in place                                                   | 33               | -531 ( 531 )     | 737
net change in exchanges of minerals in place                                                              | 2013             | 403              | 2013
accretion of discount                                                                                | 790              | 807              | 417
net change in income taxes                                                                                | -529 ( 529 )     | 65               | -1288 ( 1288 )
timing and other                                                                                | -62 ( 62 )       | -165 ( 165 )     | 2
net change for the year                                                                                | 468              | 560              | 2225
beginning of year                                                                                | 6001             | 5441             | 3216
end of year                                                                                | $ 6469           | $ 6001           | $ 5441
net change for the year from discontinued operations                                                      | $ 2013           | $ -384 ( 384 )   | $ 212


( a ) excludes discontinued operations.
 b ) earnings before interest expense taxes as percent of average total assets.
 ( c ) total debt as percent of sum of total debt , shareholders 2019 equity non-current deferred income tax liabilities.
 results above include impact of specified items detailed below.
 additional discussion regarding specified items in fiscal years 2017 , 2016 2015 provided in item 7.
 management 2019s discussion and analysis of financial condition and results of operations.
 item 7.
 management 2019s discussion analysis of financial condition results operations commentary should be read in conjunction with consolidated financial statements accompanying notes.
 tables certain columns may not add due to use of rounded numbers for disclosure purposes.
 percentages earnings per share amounts calculated from underlying amounts.
 references to years relate to fiscal years  end on september 30.
 company overview description of company business segments becton , dickinson and company ( 201cbd 201d ) is global medical technology company in development  manufacture sale of of medical supplies  devices  laboratory equipment diagnostic products used by healthcare institutions life science researchers clinical laboratories pharmaceutical industry general public.
 company's organizational structure based upon two principal business segments  bd medical ( 201cmedical 201d ) and bd life sciences ( 201clife sciences 201d ).
 2019s products manufactured sold worldwide.
 products marketed in united states internationally through independent distribution channels directly to end-users by bd independent sales representatives.
organize operations outside united states as follows : europe ; ema ( includes commonwealth of independent states  middle east africa ) ; greater asia ( includes japan asia pacific ) ; latin america ( includes mexico  central america  caribbean  south america ) ; canada.
 continue pursue growth opportunities in emerging markets , include geographic regions : eastern europe middle east  africa  latin america certain countries within asia pacific.
 primarily focused on certain countries whose healthcare systems expanding , in particular  china india.
 strategic objectives bd remains focused on delivering sustainable growth shareholder value  making appropriate investments for future.
 bd management operates business consistent with core strategies : 2022 to increase revenue growth by focusing on core products  services solutions deliver greater benefits to patients  healthcare workers researchers;

millions of dollars except per share amounts            | years ended september 30 2017 | years ended september 30 2016 | years ended september 30 2015 | years ended september 30 2014 | years ended september 30 2013
------------------------------------------------------- | ----------------------------- | ----------------------------- | ----------------------------- | ----------------------------- | -----------------------------
total specified items                                   | $ 1466                        | $ 1261                        | $ 1186                        | $ 153                         | $ 442
after-tax impact of specified items                     | $ 971                         | $ 892                         | $ 786                         | $ 101                         | $ 279
impact of specified items on diluted earnings per share | $ -4.34 ( 4.34 )              | $ -4.10 ( 4.10 )              | $ -3.79 ( 3.79 )              | $ -0.51 ( 0.51 )              | $ -1.40 ( 1.40 )
impact of dilution from share issuances                 | $ -0.54 ( 0.54 )              | $ 2014                        | $ -0.02 ( 0.02 )              | $ 2014                        | $ 2014


american tower corporation subsidiaries notes to consolidated financial statements ( 3 ) consists of customer-related intangibles approximately $ 75. 0 million network location intangibles approximately $ 72. 7 million.
 customer-related intangibles network location intangibles amortized straight-line basis over up to 20 years.
 company expects goodwill recorded deductible for tax purposes.
 goodwill allocated to company 2019s international rental and management segment.
 september 12 , 2012  company entered definitive agreement to purchase approximately 348 additional communications sites from telef f3nica mexico.
 on september 27 , 2012 and december 14, 2012  company completed purchase of 279 and 2 communications sites  for aggregate purchase price of $ 63. 5 million ( including value added tax of $ 8. 8 million ).
 following table summarizes preliminary allocation of aggregate purchase consideration paid amounts of assets acquired liabilities assumed based upon estimated fair value at date of acquisition ( in thousands ) : preliminary purchase price allocation.
 consists of customer-related intangibles of approximately $ 10. 7 million network location intangibles approximately $ 10. 4 million.
 customer-related intangibles network location intangibles amortized straight-line basis over up to 20 years.
 company expects goodwill recorded deductible for tax purposes.
 goodwill allocated to company 2019s international rental and management segment.
 november 16 , 2012  company entered agreement to purchase up to 198 additional communications sites from telef f3nica mexico.
 on december 14 , 2012  company completed purchase of 188 communications sites  for aggregate purchase price of $ 64. 2 million ( including value added tax of $ 8. 9 million ).

| preliminary purchase price allocation
--------------------------------- | -------------------------------------
current assets                    | $ 8763
non-current assets                | 2332
property and equipment            | 26711
intangible assets ( 1 )           | 21079
other non-current liabilities     | -1349 ( 1349 )
fair value of net assets acquired | $ 57536
goodwill ( 2 )                    | 5998


stock performance graph graph shows comparison of cumulative total stockholder returns for common stock nasdaq stock market index nasdaq pharmaceutical index  from initial public offering july 27 , 2000 through december 26 , 2003.
 graph assumes $ 100 invested on july 27 , 2000  in common stock and each index all dividends reinvested.
 no cash dividends declared on common stock.
 stockholder returns over period not indicative of future stockholder returns.
 comparison of total return among illumina , inc. nasdaq composite index nasdaq pharmaceutical index december 26 , 2003december 27 , 2002december 28 , 2001december 29 , 2000july 27 , 2000 illumina , inc.
 nasdaq composite index nasdaq pharmaceutical index july 27 , december 29 , december 28 , december 27 , december 26 , 2000 2000 2001 2002 2003.

| july 27 2000 | december 29 2000 | december 28 2001 | december 27 2002 | december 26 2003
--------------------------- | ------------ | ---------------- | ---------------- | ---------------- | ----------------
illumina inc .              | 100.00       | 100.39           | 71.44            | 19.50            | 43.81
nasdaq composite index      | 100.00       | 63.84            | 51.60            | 35.34            | 51.73
nasdaq pharmaceutical index | 100.00       | 93.20            | 82.08            | 51.96            | 74.57


entergy corporation notes to consolidated financial statements annual long-term debt maturities ( excluding lease obligations ) for debt outstanding as of december 31 , 2004 for next five years as follows:.
 in november 2000  entergy's non-utility nuclear business purchased fitzpatrick and indian point 3 power plants in seller-financed transaction.
 entergy issued notes to nypa with seven annual installments of approximately $ 108 million commencing one year from date closing eight annual installments of $ 20 million commencing eight years from date closing.
 notes stated interest rate implicit interest rate of 4. 8% (. 8 % ).
 accordance purchase agreement with nypa purchase of indian point 2 in 2001 resulted in entergy's non-utility nuclear business liable to nypa for additional $ 10 million per year for 10 years beginning september 2003.
 liability recorded upon purchase of indian point 2 in september 2001 included in note payable to nypa balance.
 in july 2003  payment of $ 102 million made prior to maturity on note payable to nypa.
 provision in letter of credit supporting notes if domestic utility companies or system energy default on other indebtedness entergy could be required to post collateral to support letter of credit.
 covenants entergy corporation notes require maintain consolidated debt ratio of 65% ( 65 % ) or less of total capitalization.
 if entergy's debt ratio exceeds this limit or entergy or domestic utility companies default other indebtedness or in bankruptcy or insolvency proceedings acceleration of notes' maturity dates may occur.
 long-term securities issuances of entergy corporation , entergy gulf states , entergy louisiana  entergy mississippi  system energy limited to amounts authorized by sec.
current sec order  without further authorization entergy corporation cannot incur additional indebtedness or issue other securities unless it and public utility subsidiaries maintain common equity ratio of at least 30% ( 30 % ) and b security to be issued if rated ) and all outstanding securities of entergy corporation rated are rated investment grade by least one nationally recognized statistical rating agency.
 current sec orders without further authorization entergy gulf states , entergy louisiana and entergy mississippi cannot incur additional indebtedness or issue other securities unless issuer and entergy corporation maintains common equity ratio of at least 30% ( 30 % ) and security to be issued if rated ) and all outstanding securities of issuer other than preferred stock of entergy gulf states ) all outstanding securities entergy corporation are rated are rated investment grade.
 junior subordinated deferrable interest debentures implementation of fin 46 entergy implemented fasb interpretation no.
 46 , "consolidation of variable interest entities" effective december 31 , 2003.
 fin 46 requires existing unconsolidated variable interest entities to be consolidated by primary beneficiaries if entities do not disperse risks among investors.
 variable interest entities ( vies ) generally are entities not have sufficient equity to finance operations without additional financial support from equity interest holders and/or group of equity interest holders collectively not able to exercise control over entity.
 primary beneficiary is party that absorbs majority of entity's expected losses , receives majority of expected residual returns  or both result of holding variable interest.
 company may have interest in vie through ownership or other contractual rights or obligations.
entergy louisiana capital i entergy arkansas capital i entergy gulf states capital i ( trusts ) established as financing subsidiaries of entergy louisiana entergy arkansas gulf states

| ( in thousands )
---- | ----------------
2005 | $ 467298
2006 | $ 75896
2007 | $ 199539
2008 | $ 747246
2009 | $ 512584