in corporate consumer loan tables are purchased distressed loans  loans evidenced significant credit deterioration subsequent to origination prior to acquisition by citigroup.
 with sop 03-3  difference between total expected cash flows for these loans and initial recorded investments is recognized in income over life of loans using level yield.
 these loans excluded from impaired loan information.
 per sop 03-3  subsequent decreases to expected cash flows for purchased distressed loan require build of allowance so loan retains level yield.
 increases in expected cash flows first recognized as reduction of established allowance and then recognized as income prospectively over remaining life loan by increasing loan 2019s level yield.
 where expected cash flows cannot be reliably estimated purchased distressed loan is accounted for under cost recovery method.
 carrying amount of company 2019s purchased distressed loan portfolio at december 31, 2010 was $ 392 million , net of allowance of $ 77 million as of december 31 , 2010.
 changes in accretable yield , related allowance and carrying amount net of accretable yield for 2010 are as follows : in millions of dollars accretable carrying amount of loan receivable allowance.
 balance reported in column 201ccarrying amount of loan receivable 201d consists of $ 130 million of purchased loans accounted for under level-yield method and $ 0 under cost-recovery method.
 these balances represent fair value of loans at acquisition date.
 total expected cash flows for level-yield loans were $ 131 million at acquisition dates.
 balance in column 201ccarrying amount of loan receivable 201d consists of $ 315 million of loans accounted for under level-yield method and $ 154 million accounted for under cost-recovery method.

in millions of dollars                 | accretable yield | carrying amount of loan receivable | allowance
-------------------------------------- | ---------------- | ---------------------------------- | ----------
beginning balance                      | $ 27             | $ 920                              | $ 95
purchases ( 1 )                        | 1                | 130                                | 2014
disposals/payments received            | -11 ( 11 )       | -594 ( 594 )                       | 2014
accretion                              | -44 ( 44 )       | 44                                 | 2014
builds ( reductions ) to the allowance | 128              | 2014                               | -18 ( 18 )
increase to expected cash flows        | -2 ( 2 )         | 19                                 | 2014
fx/other                               | 17               | -50 ( 50 )                         | 2014
balance at december 31 2010 ( 2 )      | $ 116            | $ 469                              | $ 77


market price dividends d u l t y c o r p o r a t i o n 3 8 2 0 0 2 a n n u a l r e p o r t company 2019s common shares listed for trading on new york stock exchange  symbol dre.
 following table sets high low sales prices of common stock for periods indicated dividend paid per share each period.
 comparable cash dividends expected future.
 january 29 , 2003  company declared quarterly cash dividend of $. 455 per share payable february 28 , 2003 , to common shareholders of record february 14 , 2003.

quarter ended | 2002 high | 2002 low | 2002 dividend | 2002 high | 2002 low | dividend
------------- | --------- | -------- | ------------- | --------- | -------- | --------
december 31   | $ 25.84   | $ 21.50  | $ .455        | $ 24.80   | $ 22.00  | $ .45
september 30  | 28.88     | 21.40    | .455          | 26.17     | 21.60    | .45
june 30       | 28.95     | 25.46    | .450          | 24.99     | 22.00    | .43
march 31      | 26.50     | 22.92    | .450          | 25.44     | 21.85    | .43


notes to audited consolidated financial statements director stock compensation subplan eastman's 2018 director stock compensation subplan "directors' subplan ) component of 2017 omnibus plan  remains in effect until terminated by board of directors or earlier termination 2017 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 2017 omnibus plan.
 not separate source of shares for grant of equity awards all shares awarded part of 10 million shares authorized under 2017 omnibus plan.
 shares of restricted stock granted on first day of non- employee director's initial term of service shares granted each year to each non-employee director on date of annual meeting of stockholders.
 company's practice to issue new shares rather than treasury shares for equity awards for compensation plans  including 2017 omnibus plan subplan 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-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.
compensation expense for 2018 , 2017 2016  total share-based compensation expense before tax ) of approximately $ 64 million , $ 52 million  $ 36 million  recognized in "selling  general administrative expense" in consolidated statements of earnings comprehensive income retained earnings for all share-based awards approximately $ 9 million , $ 8 million $ 7 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.
 approximately $ 3 million for 2018 $ 2 million for 2017 and 2016  stock option compensation expense recognized each year 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 by compensation and management development committee of board of directors under 2017 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 vary up to three years.
 vesting 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 2018  2017 2016 provided in table below.
 volatility rate of grants derived from historical company common stock price volatility over same time period as expected term of each stock option award.
 volatility rate derived by mathematical formula utilizing weekly high closing stock price data over expected term.
expected dividend yield calculated using company's average last four quarterly dividend yields.
 average risk-free interest rate derived from united states department of treasury published interest rates daily yield curves same time period as expected term.

assumptions                     | 2018               | 2017               | 2016
------------------------------- | ------------------ | ------------------ | ------------------
expected volatility rate        | 19.03% ( 19.03 % ) | 20.45% ( 20.45 % ) | 23.71% ( 23.71 % )
expected dividend yield         | 2.48% ( 2.48 % )   | 2.64% ( 2.64 % )   | 2.31% ( 2.31 % )
average risk-free interest rate | 2.61% ( 2.61 % )   | 1.91% ( 1.91 % )   | 1.23% ( 1.23 % )
expected term years             | 5.1                | 5.0                | 5.0


part ii item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities table presents reported quarterly high and low per share sale prices of our class a common stock on new york stock exchange ( 201cnyse 201d ) for years 2007 and 2006.
 february 29 , 2008  closing price class a common stock was $ 38. 44 per share reported nyse.
 as of february 29, 2008  had 395748826 outstanding shares class a common stock 528 registered holders.
 dividends never paid dividend on any class common stock.
 anticipate may retain future earnings to fund development growth business.
 indentures governing 7. 50% ( 7. 50 % ) senior notes due 2012 ( 201c7. 50% ( 201c7. 50 % ) notes 201d ) 7. 125% ( 7. 125 % ) senior notes due 2012 ( 201c7. 125%. 125 % notes 201d ) may prohibit us from paying dividends to stockholders unless satisfy certain financial covenants.
 loan agreement for revolving credit facility indentures governing terms of 7. 50% ( 7. 50 % ) notes 7. 125% ( 7. 125 % ) notes contain covenants restrict ability to pay dividends unless certain financial covenants satisfied.
 spectrasite subsidiaries classified as unrestricted subsidiaries under indentures for 7. 50% ( 7. 50 % ) notes 7. 125% ( 7. 125 % ) notes certain spectrasite 2019s subsidiaries subject to restrictions on amount of cash they can distribute under loan agreement related to securitization.
for more information about restrictions under loan agreement for revolving credit facility , notes indentures loan agreement related to securitization , see item 7 annual report under caption 201cmanagement 2019s discussion analysis of financial condition results of operations 2014liquidity capital resources 2014factors affecting sources liquidity 201d note 3 to consolidated financial statements included in annual report.

2007                       | high    | low
-------------------------- | ------- | -------
quarter ended march 31     | $ 41.31 | $ 36.63
quarter ended june 30      | 43.84   | 37.64
quarter ended september 30 | 45.45   | 36.34
quarter ended december 31  | 46.53   | 40.08
2006                       | high    | low
quarter ended march 31     | $ 32.68 | $ 26.66
quarter ended june 30      | 35.75   | 27.35
quarter ended september 30 | 36.92   | 29.98
quarter ended december 31  | 38.74   | 35.21


settlements expiration of statutes of limi- tation company estimates unrecognized tax benefits could be reduced by up to $ 365 million during next twelve months no significant impact on earnings or cash tax payments.
 company believes it adequately accrued for possible audit adjust- ments final resolution of examinations cannot be determined could result in final settlements differ from current estimates.
 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 minority interest.
 company recorded income tax provision for 2006 of $ 1. 9 billion  $ 1. 6 billion deferred tax provision ( reflecting deferred taxes on 2006 transformation plan forestland sales ) $ 300 million current tax provision.
 provision includes $ 11 million provision related to special tax adjustment.
 excluding impact of special items tax provision was $ 272 million  or 29% ( 29 % ) of pre-tax earnings before minority interest.
 company recorded income tax benefit for 2005 of $ 407 million including $ 454 million net tax benefit related to special tax adjustment tax benefit of $ 627 million resulting from agreement with.
 internal revenue service concerning 1997 through 2000.
 federal income tax audit  $ 142 million charge for deferred taxes related to earnings repatriations under american jobs creation act of 2004 $ 31 million of other tax charges.
 excluding impact of special items tax provision was $ 83 million  or 20% ( 20 % ) of pre-tax earnings before minority interest.
 international paper non.
net operating loss carryforwards approximately $ 352 million expire 2008 through 2017 2014 $ 14 million indefinite carryforwards $ 338 million.
 interna- tional paper has tax benefits from net operating loss carryforwards for state taxing jurisdictions approximately $ 258 million expire 2008 through 2017 2014$ 83 million 2018 through 2027 2014$ 175 million.
 international paper has federal  non-u.
 state tax credit carryforwards expire 2008 through 2017 2014 $ 67 million  2018 through 2027 2014 $ 92 million indefinite carryforwards 2014 $ 316 million.
 international paper has state capital loss carryfor- wards expire 2008 through 2017 2014 $ 9 million.
 deferred income taxes not provided for tempo- rary differences approximately $ 3. 7 billion , $ 2. 7 billion $ 2. 4 billion as of december 31 , 2007 , 2006 2005  representing earnings of non-u.
 subsidiaries intended to be permanently reinvested.
 computation of potential deferred tax liability undistributed earnings basis differences not practicable.
 note 10 commitments contingent liabilities certain property , machinery equipment leased under cancelable and non-cancelable agree- ments.
 unconditional purchase obligations entered into ordinary course of business for capital projects purchase of pulpwood , wood chips  raw materials  energy services including fiber supply agreements to purchase pulpwood entered into con with 2006 transformation plan forest- land sales ( see note 7 ).
 at december 31 , 2007  total future minimum commitments under existing non-cancelable operat- ing leases and purchase obligations : in millions 2008 2009 2010 2011 2012.
 ( a ) includes $ 2. 1 billion relating to fiber supply agreements entered time transformation plan forestland sales.
rent expense was $ 168 million , $ 217 million $ 216 million for 2007 , 2006 2005 , respectively.
 international paper entered agreement in 2000 to guarantee for fee unsecured con- tractual credit agreement between financial institution unrelated third-party customer.
 in fourth quarter of 2006  customer cancelled agreement paid company fee of $ 11 million  included in cost of products sold in accompanying consolidated statement of oper- ations.
 company has no future obligations under agreement.

in millions                | 2008   | 2009  | 2010  | 2011  | 2012  | thereafter
-------------------------- | ------ | ----- | ----- | ----- | ----- | ----------
lease obligations          | $ 136  | $ 116 | $ 101 | $ 84  | $ 67  | $ 92
purchase obligations ( a ) | 1953   | 294   | 261   | 235   | 212   | 1480
total                      | $ 2089 | $ 410 | $ 362 | $ 319 | $ 279 | $ 1572


entergy mississippi , inc.
 management 2019s financial discussion analysis 2010 compared to 2009 net revenue consists of operating revenues net of 1 ) fuel  fuel-related expenses  gas purchased for resale  2 ) purchased power expenses 3 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2010 to 2009.
 amount ( in millions ).
 volume/weather variance due to increase of 1046 gwh  or 8% ( 8 % )  in billed electricity usage in all sectors due to effect of favorable weather on residential sector.
 gross operating revenues , fuel purchased power expenses  other regulatory charges credits ) gross operating revenues increased due to increase of $ 22 million in power management rider revenue of higher rates volume/weather variance increase in grand gulf rider revenue higher rates increased usage offset by decrease of $ 23. 5 million in fuel cost recovery revenues due to lower fuel rates.
 fuel and purchased power expenses decreased due to decrease in deferred fuel expense prior over-collections offset by increase in average market price of purchased power increased net area demand.
 other regulatory charges increased due to increased recovery of costs associated with power management recovery rider.
 other income statement variances 2011 compared to 2010 operation and maintenance expenses decreased due to $ 5. 4 million decrease in compensation and benefits costs from increase in accrual for incentive-based compensation in 2010 decrease in stock option expense ; sale of $ 4. 9 million of surplus oil inventory.
 decrease partially offset by increase of $ 3. 9 million in legal expenses due to deferral in 2010 of certain litigation expenses regulatory treatment.
taxes other than income taxes increased due to increase in ad valorem taxes due to higher 2011 assessment compared 2010  partially offset by higher capitalized property taxes prior year.
 depreciation amortization expenses increased due to increase in plant service.
 interest expense decreased due to revision by ferc 2019s acceptance of change in treatment of funds received from independent power producers for transmission interconnection projects.

| amount ( in millions )
---------------- | ----------------------
2009 net revenue | $ 536.7
volume/weather   | 18.9
other            | -0.3 ( 0.3 )
2010 net revenue | $ 555.3


aggregate changes in balance of gross unrecognized tax benefits  excludes interest and penalties  for 2012 , 2011  and 2010 , is as follows ( in millions ) :.
 company includes interest and penalties related to unrecognized tax benefits within provision for income taxes.
 as of september 29 , 2012 and september 24 , 2011 , total of gross interest and penalties accrued was $ 401 million and $ 261 million  respectively classified as non-current liabilities in consolidated balance sheets.
 in connection with tax matters company recognized interest expense in 2012 and 2011 of $ 140 million and $ 14 million in 2010 company recognized interest benefit of $ 43 million.
 company subject to taxation and files income tax returns in.
 federal jurisdiction and many state and foreign jurisdictions.
 for.
 federal income tax purposes all years prior to 2004 are closed.
 internal revenue service ( 201cirs 201d ) completed field audit of company 2019s federal income tax returns for years 2004 through 2006 and proposed certain adjustments.
 company contested certain these adjustments through irs appeals office.
 irs currently examining years 2007 through 2009.
 company also subject to audits by state , local and foreign tax authorities.
 in major states and major foreign jurisdictions years subsequent to 1989 and 2002  generally remain open and could be subject to examination by taxing authorities.
 management believes adequate provision has made for adjustments from tax examinations.
 outcome of tax audits cannot be predicted with certainty.
 if issues addressed in company tax audits resolved not consistent with management expectations company could be required to adjust provision for income tax in period such resolution occurs.
timing of resolution/or closure of audits not certain, company believes possible tax audit resolutions could reduce unrecognized tax benefits by between $ 120 million and $ 170 million in next 12 months.
 note 6 2013 shareholders 2019 equity and share-based compensation preferred stock company has five million shares of authorized preferred stock none issued or outstanding.
 under terms company 2019s restated articles of incorporation board of directors authorized to determine or alter rights preferences privileges restrictions of company 2019s authorized but unissued shares of preferred stock.
 dividend and stock repurchase program in 2012  board of directors company approved dividend policy plans to make subject declaration quarterly dividends of $ 2. 65 per share.
 on july 24 , 2012 board of directors declared dividend of $ 2. 65 per share to shareholders of record as of close of business on august 13 , 2012.
 company paid $ 2. 5 billion conjunction with this dividend on august 16 , 2012.
 no dividends declared in first three quarters of 2012 or in 2011 and 2010.

| 2012         | 2011       | 2010
---------------------------------------------------------------- | ------------ | ---------- | ------------
beginning balance                                                | $ 1375       | $ 943      | $ 971
increases related to tax positions taken during a prior year     | 340          | 49         | 61
decreases related to tax positions taken during a prior year     | -107 ( 107 ) | -39 ( 39 ) | -224 ( 224 )
increases related to tax positions taken during the current year | 467          | 425        | 240
decreases related to settlements with taxing authorities         | -3 ( 3 )     | 0          | -102 ( 102 )
decreases related to expiration of statute of limitations        | -10 ( 10 )   | -3 ( 3 )   | -3 ( 3 )
ending balance                                                   | $ 2062       | $ 1375     | $ 943


abiomed , inc.
 subsidiaries notes to consolidated financial statements 2014 continued ) note 12.
 stock award plans and stock based compensation ) compensation expense recognized related to company 2019s espp was approximately $ 0. 1 million for each years ended march 31 , 2009 , 2008 2007.
 fair value of shares issued under employee stock purchase plan estimated on commencement date of each offering period using black-scholes option-pricing model with assumptions:.
 note 13.
 capital stock in august 2008  company issued 2419932 shares of common stock at price $ 17. 3788 in public offering  resulted in net proceeds company approximately $ 42. 0 million  after deducting offering expenses.
 march 2007  company issued 5000000 shares of common stock in public offering  april 2007  additional 80068 shares of common stock issued connection with offering partial exercise of underwriters 2019 over-allotment option.
 company authorized 1000000 shares of class b preferred stock , $ 0. 01 par value , board of directors can set designation , rights privileges.
 no shares of class b preferred stock issued or outstanding.
 note 14.
 income taxes deferred tax assets liabilities recognized for estimated future tax consequences attributable to tax benefit carryforwards differences between financial statement amounts of assets liabilities and respective tax basis.
 deferred tax assets liabilities measured using enacted tax rates.
 valuation reserve established if likely all or portion of deferred tax asset not be realized.
 tax benefit associated with stock option compensation deductions credited to equity when realized.
 at march 31 , 2009 , company had federal and state net operating loss carryforwards  nols of approximately $ 145. 1 million and $ 97. 1 million , respectively begin expire in fiscal 2010.
 at march 31 , 2009  company had federal and state research and development credit carryforwards of approximately $ 8. 1 million and $ 4. 2 million  respectively to expire in fiscal 2010.
 company acquired impella , a german-based company in may 2005.
 impella had pre-acquisition net operating losses of approximately $ 18. 2 million at time of acquisition denominated in euros subject to foreign exchange remeasurement at each balance sheet date ) since incurred net operating losses in each fiscal year since acquisition.
 during fiscal 2008  company determined approximately $ 1. 2 million of pre-acquisition operating losses could not be utilized.
 utilization of pre-acquisition net operating losses of impella in future periods subject to statutory approvals and business requirements.
 due to uncertainties surrounding company 2019s ability to generate future taxable income assets full valuation allowance established to offset company 2019s net deferred tax assets and liabilities.
 future utilization of company 2019s nol and research and development credit carry forwards to offset future taxable income may be subject to substantial annual limitation under section 382 of internal revenue code due to ownership changes previously or could occur in future.
 ownership changes  can limit amount net operating loss carry forwards and research and development credit carry forwards company can use each year to offset future taxable income taxes payable.
 company believes all federal and state nol 2019s will be available for carryforward to future tax periods subject to statutory maximum carryforward limitation of annual nol.
 any future potential limitation to all or portion of nol or research and development credit carry forwards  before utilized would reduce company 2019s gross deferred tax assets.
 company will monitor subsequent ownership changes could impose limitations in future.

| 2009             | 2008             | 2007
----------------------- | ---------------- | ---------------- | ----------------
risk-free interest rate | 1.01% ( 1.01 % ) | 4.61% ( 4.61 % ) | 4.84% ( 4.84 % )
expected life ( years ) | 0.5              | 0.5              | 0.5
expected volatility     | 67.2% ( 67.2 % ) | 45.2% ( 45.2 % ) | 39.8% ( 39.8 % )


system energy may refinance redeem retire debt prior to maturity extent market conditions interest dividend rates favorable.
 all debt common stock issuances system energy require prior regulatory approval. a0debt issuances subject to issuance tests in bond indentures other agreements. a0system energy has sufficient capacity under tests to meet foreseeable capital needs.
 system energy 2019s receivables from money pool were as of december 31 for each following years.
 see note 4 to financial statements for description of money pool.
 system energy nuclear fuel company variable interest entity has credit facility $ 120 million scheduled to expire in may 2019.
 as of december 31 , 2017 , $ 17. 8 million in letters of credit to support like commercial paper issued $ 50 million in loans outstanding under system energy nuclear fuel company variable interest entity credit facility.
 see note 4 financial statements for discussion variable interest entity credit facility.
 system energy obtained authorizations from ferc through october 2019 for : 2022 short-term borrowings not to exceed $ 200 million outstanding ; 2022 long-term borrowings and security issuances ; 2022 long-term borrowings by nuclear fuel company variable interest entity.
 see note 4 to financial statements for discussion of system energy 2019s short-term borrowing limits.
 system energy resources , inc.
 management 2019s financial discussion and analysis federal regulation see 201crate  cost-recovery other regulation 2013 federal regulation 201d section of entergy corporation subsidiaries management 2019s financial discussion analysis note 2 to financial statements for discussion federal regulation.
 complaint against system energy in january 2017 apsc and mpsc filed complaint with ferc against system energy.
complaint seeks reduction in return on equity component of unit power sales agreement system energy sells grand gulf capacity and energy to entergy arkansas , entergy louisiana  entergy mississippi  entergy new orleans.
 entergy arkansas sells some grand gulf capacity and energy to entergy louisiana entergy mississippi entergy new orleans under separate agreements.
 current return on equity under unit power sales agreement is 10. 94% ( 10. 94 % ).
 complaint alleges return on equity is unjust unreasonable because current capital market considerations indicate it excessive.
 complaint requests ferc to institute proceedings to investigate return on equity establish lower return on equity requests ferc establish january 23 , 2017 as refund effective date.
 complaint includes return on equity analysis establish range of reasonable return on equity for system energy is between 8. 37% ( 8. 37 % ) and 8. 67% ( 8. 67 % ).
 system energy answered complaint in february 2017 disputes return on equity of 8. 37% ( 8. 37 % ) to 8. 67% ( 8. 67 % ) is just and reasonable.
 lpsc and city council intervened in proceeding support for complaint.
 system energy recording provision against revenue for potential outcome of proceeding.
 in september 2017 ferc established refund effective date of january 23, 2017 consolidated return on equity complaint with proceeding in unit power sales agreement directed parties to engage in settlement

2017             | 2016             | 2015             | 2014
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 111667         | $ 33809          | $ 39926          | $ 2373


apply no impact on plan obligations.
 for 2015 , healthcare trend rate was 7% ( 7 % )  ultimate trend rate was 5% ( 5 % )  year ultimate trend rate reached was 2019.
 projected benefit payments are as follows:.
 estimated benefit payments based on assumptions about future events.
 actual benefit payments may vary significantly from estimates.
 17.
 commitments and contingencies litigation involved in various legal proceedings , including commercial , competition , environmental , health , safety  product liability  insurance matters.
 in september 2010  brazilian administrative council for economic defense ( cade ) issued decision against our brazilian subsidiary , air products brasil ltda. several other brazilian industrial gas companies for alleged anticompetitive activities.
 cade imposed civil fine of r$ 179. 2 million ( approximately $ 55 at 30 september 2016 ) on air products brasil ltda.
 fine based on recommendation by unit brazilian ministry of justice , investigation began in 2003  alleging violation of competition laws with sale of industrial and medical gases.
 fines based on percentage of our total revenue in brazil in 2003.
 denied allegations by authorities filed appeal in october 2010 with brazilian courts.
 on 6 may 2014  appeal granted fine against air products brasil ltda.
 dismissed.
 cade appealed ruling matter remains pending.
 with advice of outside legal counsel assessed status of matter concluded adverse final judgment after exhausting all appeals possible, judgment not probable.
 result no provision made in consolidated financial statements.
 estimate maximum possible loss to be full amount of fine of r$ 179. 2 million ( approximately $ 55 at 30 september 2016 ) plus interest accrued until final disposition of proceedings.
than this matter we do not currently believe any legal proceedings  individually or aggregate reasonably possible to material impact on our financial condition , results of operations  or cash flows.
 environmental in normal course business we involved in legal proceedings under comprehensive environmental response , compensation , and liability act ( cercla federal superfund law ) ; resource conservation and recovery act ( rcra ) ; similar state and foreign environmental laws relating to designation of certain sites for investigation or remediation.
 presently approximately 33 sites on final settlement not reached where we with others designated potentially responsible party by environmental protection agency or engaged in investigation or remediation including cleanup activity at certain our current and former manufacturing sites.
 we continually monitor these sites for environmental exposure.
 accruals for environmental loss contingencies are recorded when probable liability incurred and amount of loss can be reasonably estimated.
 consolidated balance sheets at 30 september 2016 and 2015 included accrual of $ 81. 4 and $ 80. 6  respectively primarily as part of other noncurrent liabilities.
 environmental liabilities be paid over period up to 30 years.
 estimate exposure for environmental loss contingencies to range from $ 81 to possible upper exposure of $ 95 as of 30 september 2016.

2017          | $ 11.5
------------- | ------
2018          | 11.0
2019          | 10.7
2020          | 10.2
2021          | 9.7
2022 20132026 | 35.3


3m 2019s cash and cash equivalents balance at december 31 , 2007 totaled $ 1. 896 billion  additional $ 1. 059 billion in current and long-term marketable securities.
 3m 2019s strong balance sheet liquidity provide company significant flexibility to take advantage opportunities going forward.
 company will continue to invest in operations to drive growth including continual review of acquisition opportunities.
 3m expects to complete acquisition of aearo holding corp.
 for approximately $ 1. 2 billion in 2008.
 3m paid dividends of $ 1. 380 billion in 2007  long history of dividend increases.
 in february 2008 board of directors increased quarterly dividend on 3m common stock by 4. 2% ( 4. 2 % ) to 50 cents per share equivalent to annual dividend of $ 2. 00 per share.
 in february 2007 3m 2019s board of directors authorized two-year share repurchase of up to $ 7. 0 billion for period from february 12, 2007 to february 28 , 2009.
 at december 31 , 2007 company has $ 4. 1 billion remaining under authorization not expect to fully utilize by february 28 , 2009.
 in 2008  company expects to contribute $ 100 million to $ 400 million to u. s.
 international pension plans.
 company required minimum pension contribution obligation for.
 plans in 2008.
 amount anticipated discretionary contribution could vary depending on. -plans funding status 2008 measurement date anticipated tax deductibility of contribution.
 future contributions will depend on market conditions interest rates other factors.
 3m believes strong cash flow and balance sheet will allow to fund future pension needs without compromising growth opportunities.
 company uses working capital measures emphasis focus on certain working capital assets and liabilities.
 measures not defined under u. s.
accepted accounting principles may not be computed same as similarly titled measures used by other companies.
 primary working capital measures 3m uses combined index includes accounts receivable inventory accounts payable.
 combined index ( defined as quarterly net sales 2013 fourth quarter at year-end 2013 multiplied by four divided by ending net accounts receivable plus inventory less accounts payable ) was 5. 3 at december 31 , 2007 down from 5. 4 at december 31  2006.
 receivables increased $ 260 million  or 8. 4% ( 8. 4 % ) compared with december 31 , 2006.
 currency translation increased accounts receivable by $ 159 million year-on-year as.
 dollar weakened against currencies.
 inventories increased $ 251 million  or 9. 7% ( 9. 7 % )  compared with december 31 , 2006.
 currency translation increased inventories by $ 132 million year-on-year.
 accounts payable increased $ 103 million compared with december 31 , 2006 $ 65 million year-on-year increase related to currency translation.
 cash flows from operating  investing financing activities provided in tables follow.
 individual amounts exclude effects of acquisitions  divestitures exchange rate impacts presented separately.
 amounts in operating investing financing activities tables reflect changes in balances from period to period adjusted for these effects.
 cash flows from operating activities years ended december 31.

( millions )                                       | 2007         | 2006           | 2005
-------------------------------------------------- | ------------ | -------------- | ------------
net income                                         | $ 4096       | $ 3851         | $ 3111
depreciation and amortization                      | 1072         | 1079           | 986
company pension contributions                      | -376 ( 376 ) | -348 ( 348 )   | -654 ( 654 )
company postretirement contributions               | -3 ( 3 )     | -37 ( 37 )     | -134 ( 134 )
company pension expense                            | 190          | 347            | 331
company postretirement expense                     | 65           | 93             | 106
stock-based compensation expense                   | 228          | 200            | 155
gain from sale of businesses                       | -849 ( 849 ) | -1074 ( 1074 ) | 2014
income taxes ( deferred and accrued income taxes ) | -34 ( 34 )   | -178 ( 178 )   | 402
excess tax benefits from stock-based compensation  | -74 ( 74 )   | -60 ( 60 )     | -54 ( 54 )
accounts receivable                                | -35 ( 35 )   | -103 ( 103 )   | -184 ( 184 )
inventories                                        | -54 ( 54 )   | -309 ( 309 )   | -294 ( 294 )
accounts payable                                   | -4 ( 4 )     | 68             | 113
product and other insurance receivables and claims | 158          | 58             | 122
other 2014 net                                     | -105 ( 105 ) | 252            | 198
net cash provided by operating activities          | $ 4275       | $ 3839         | $ 4204


aircraft fuel operations financial results affected by availability price of jet fuel.
 based on 2014 forecasted mainline regional fuel consumption estimate as of december 31 , 2013  a $ 1 per barrel increase in price of crude oil would increase 2014 annual fuel expense by $ 104 million ( excluding effect hedges ) by $ 87 million ( taking into account such hedges ).
 following table shows annual aircraft fuel consumption costs  including taxes  for american, it's third-party regional carriers american eagle , for 2011 through 2013.
 aag's consolidated fuel requirements in 2014 expected to increase significantly to approximately 4. 4 billion gallons result of full year of us airways operations.
 gallons consumed ( in millions ) average cost per gallon total cost ( in millions ) percent of total operating expenses.
 total fuel expenses for american eagle american's third-party regional carriers operating under capacity purchase agreements for years ended december 31 , 2013, 2012 and 2011 were $ 1. 1 billion , $ 1. 0 billion and $ 946 million , respectively.
 to provide control over price supply , we trade and ship fuel maintain fuel storage facilities to support flight operations.
 prior to from entered into hedging contracts consist primarily of call options , collars ( purchased call option sold put option ) call spreads ( call ).
 heating oil , jet fuel crude oil are primary underlying commodities in hedge portfolio.
 depending on movements in price of fuel fuel hedging can result in gains or losses on fuel hedges.
 for more discussion see part i , item 1a.
 risk factors - business dependent on price availability of aircraft fuel.
periods high volatility in fuel costs increased fuel prices disruptions in supply of aircraft fuel could negative impact on operating results liquidity. as of january 2014 had hedges covering approximately 19% ( 19 % ) of estimated consolidated aag ( including estimated fuel requirements of us airways ) 2014 fuel requirements.
 consumption hedged for 2014 capped at average price approximately $ 2. 91 per gallon of jet fuel.
 one percent of estimated 2014 fuel requirement hedged using call spreads with protection capped at average price approximately $ 3. 18 per gallon of jet fuel.
 eighteen percent of estimated 2014 fuel requirement hedged using collars with average floor price approximately $ 2. 62 per gallon of jet fuel.
 cap floor prices exclude taxes transportation costs.
 not entered into fuel hedges since effective date current policy is not to do so.
 see part ii , item 7.
 management 2019s discussion analysis of financial condition results of operations item 7 ( a ).
 quantitative disclosures about market risk note 10 to aag's consolidated financial statements item 8a note 9 to american's financial statements item 8b.
 fuel prices fluctuated substantially over past years.
 cannot predict future availability  price volatility cost of aircraft fuel.
 natural disasters  political disruptions wars involving oil-producing countries changes in fuel-related governmental policy strength of.
 dollar against foreign currencies changes in access to petroleum product pipelines terminals speculation in energy futures markets changes in aircraft fuel production capacity environmental concerns unpredictable events may result in fuel supply shortages additional fuel price volatility cost increases in future.
 see part i , item 1a.
 risk factors business dependent on price availability of aircraft fuel.
continued periods of high volatility in fuel costs , increased fuel prices significant disruptions in supply of aircraft fuel could negative impact on our operating results and liquidity. " insurance we maintain insurance of types customary in airline industry  including insurance for public liability , passenger liability  property damage  all-risk coverage for damage to aircraft.
 principal coverage includes liability for injury to members public , including passengers , damage to property of aag , subsidiaries others  loss of or damage to flight equipment , on ground or in flight.
 also maintain other types of insurance workers 2019 compensation employer 2019s liability , with limits and deductibles standard within industry.
 since september 11 , 2001  we other airlines unable to obtain coverage for liability to persons other than employees and passengers for claims from acts of terrorism , war similar events , called war risk coverage , at reasonable rates from commercial insurance market.
 purchased our war risk coverage through special program administered by faa , as most other u. s.
 airlines.
 program  expires september 30 , 2014

year | gallons consumed ( in millions ) | average costper gallon | total cost ( in millions ) | percent of total operating expenses
---- | -------------------------------- | ---------------------- | -------------------------- | -----------------------------------
2011 | 2756                             | $ 3.01                 | $ 8304                     | 33.2% ( 33.2 % )
2012 | 2723                             | $ 3.20                 | $ 8717                     | 35.3% ( 35.3 % )
2013 | 2806                             | $ 3.09                 | $ 8959                     | 35.3% ( 35.3 % )


item 1b.
 unresolved staff comments not applicable.
 item 2.
 properties as of december 28 , 2013 , major facilities consisted of : ( square feet in millions ) united states countries total owned facilities1 29. 9 16. 7 46. 6 leased facilities2 2. 3 6. 0 8. 3.
 1 leases on portions of land used for facilities expire varying dates through 2062.
 2 leases expire dates through 2028 include renewals at option.
 principal executive offices located in u. s.
 significant amount of wafer fabrication activities also located in u. s.
 in addition to current facilities building development fabrication facility in oregon began r&d start-up in 2013.
 expect new facility will allow to widen process technology lead.
 completed construction of large-scale fabrication building in arizona in 2013  currently not in use not being depreciated.
 announced plan to delay equipment installation in building leverage existing fabrication facilities , reserving new facility for additional capacity and future technologies.
 outside u. s. have wafer fabrication facilities in israel , china , ireland.
 fabrication facility in ireland transitioning to newer process technology node manufacturing expected to recommence in 2015.
 assembly and test facilities in malaysia , china , costa rica , vietnam.
 sales and marketing offices worldwide near major concentrations of customers.
 believe facilities described above suitable and adequate for present purposes productive capacity in facilities substantially being utilized or have plans to utilize it.
 do not identify or allocate assets by operating segment.
 for information on net property , plant and equipment by country , see 201cnote 27 : operating segments and geographic information 201d in part ii , item 8 of form 10-k.
 item 3.
legal proceedings discussion proceedings  see 201cnote 26 contingencies 201d part ii  item 8 form 10-k.
 item 4.
 mine safety disclosures not applicable.
 table of contents

( square feet in millions ) | unitedstates | othercountries | total
--------------------------- | ------------ | -------------- | -----
owned facilities1           | 29.9         | 16.7           | 46.6
leased facilities2          | 2.3          | 6.0            | 8.3
total facilities            | 32.2         | 22.7           | 54.9


2022 level volatility of interest capitalization rates capital market conditions ; 2022 loss of hedge accounting treatment for interest rate swaps ; 2022 continuation of good credit of interest rate swap providers ; 2022 price volatility , dislocations liquidity disruptions in financial markets impact on financing ; 2022 effect of rating agency actions on cost availability of new debt financing ; 2022 significant decline in market value of real estate as collateral for mortgage obligations ; 2022 significant change in mortgage financing market single-family housing , owned or rental product to become more significant competitive product ; 2022 our ability to to satisfy complex rules to maintain our status as reit for federal income tax purposes , ability of operating partnership to satisfy rules maintain status partnership for federal income tax purposes, ability of taxable reit subsidiaries to maintain status for federal income tax purposes ability ability subsidiaries to operate effectively within limitations by these rules ; 2022 inability to attract retain qualified personnel ; 2022 cyber liability potential liability for breaches of privacy or information security systems ; 2022 potential liability for environmental contamination ; 2022 adverse legislative regulatory tax changes ; 2022 legal proceedings relating to various issues  could result in class action lawsuit ; 2022 compliance costs associated with laws requiring access for disabled persons ; 2022 other risks identified in this annual report on form 10-k including under caption "item 1a.
 risk factors"  from  in other reports file with securities and exchange commission  sec , in other documents publicly disseminate.
 new factors may emerge could have material adverse effect on our business.
 except as required by law , we undertake no obligation to publicly update or revise forward-looking statements in this annual report on form 10-k to reflect events  circumstances changes in expectations after date this annual report on form 10-k is filed.
 item 1.
 business.
overview maa is a multifamily focused self-administered self-managed real estate investment trust .
 we own  operate  acquire develop apartment communities in southeast southwest mid-atlantic regions of united states.
 as of december 31 , 2018 maintained full or partial ownership of apartment communities and commercial properties across 17 states district of columbia  summarized.
 1 ) excludes commercial space at our multifamily apartment communities totals approximately 615000 square feet of gross leasable space.
 business conducted principally through operating partnership.
 maa is sole general partner of operating partnership holding 113844267 op units  comprising 96. 5% (. ) partnership interest in operating partnership as of december 31 , 2018.
 maa and maalp formed in tennessee in 1993.
 as of december 31 , 2018 had 2508 full- time employees 44 part-time employees.

multifamily    | communities | units
-------------- | ----------- | --------------
consolidated   | 303         | 100595
unconsolidated | 1           | 269
total          | 304         | 100864
commercial     | properties  | sq . ft. ( 1 )
consolidated   | 4           | 260000


divestiture of arrow and moores businesses unfavorable sales mix of international plumbing products decreased sales by two percent.
 net sales for 2016 positively affected by increased sales volume of plumbing products paints other coating products builders' hardware.
 net sales for 2016 positively affected by favorable sales mix of cabinets and windows  net selling price increases of north american windows and north american international plumbing products.
 net sales for 2016 negatively affected by lower sales volume of cabinets lower net selling prices of paints and other coating products.
 gross profit margins were 32. 2 percent , 34. 2 percent 33. 4 percent in 2018, 2017 2016  respectively.
 2018 gross profit margin negatively impacted by increase in commodity costs recognition of inventory step up adjustment part of acquisition of kichler increase in other expenses ( logistics costs salaries ) unfavorable sales mix.
 negative impacts partially offset by increase in net selling prices benefits associated with cost savings initiatives increased sales volume.
 2017 gross profit margin positively impacted by increased sales volume more favorable relationship between net selling prices commodity costs cost savings initiatives.
 selling , general administrative expenses as percent of sales were 17. 7 percent in 2018 compared with 18. 6 percent in 2017 and 18. 7 percent in 2016.
 decrease in selling , general administrative expenses  as percentage of sales driven by leverage of fixed expenses due primarily to increased sales volume improved cost control.
 following table reconciles reported operating profit to operating profit , adjusted to exclude certain items , dollars in millions:.
 operating profit margin in 2018 negatively affected by increase in commodity costs  recognition of inventory step up adjustment part of acquisition of kichler increase in other expenses ( logistics costs  salaries erp costs ).
negative impacts partially offset by increased net selling prices benefits cost savings initiatives increased sales volume.
 operating profit margin in 2017 positively impacted by increased sales volume cost savings initiatives favorable relationship between net selling prices commodity costs.
 operating profit margin in 2017 negatively impacted by increase in strategic growth investments other expenses including stock-based compensation health insurance costs trade show costs increased head count.
 due to increase in tariffs on imported materials from china assuming tariffs rise to 25 percent in 2019 could be exposed to approximately $ 150 million of potential annual direct cost increases.
 work to mitigate impact tariffs through price increases supplier negotiations supply chain repositioning internal productivity measures.
 other income ( expense )  net for 2018 included $ 14 million of net periodic pension and post-retirement benefit cost $ 8 million of realized foreign currency losses.
 expenses partially offset by $ 3 million of earnings related to equity method investments $ 1 million to distributions from private equity funds.
 other  net  for 2017 included $ 26 million to periodic pension post-retirement benefit costs $ 13 million net loss related to divestitures of moores and arrow $ 2 million to impairment of private equity fund partially offset by $ 3 million distributions from private equity funds $ 1 million earnings related to equity method investments.

| 2018             | 2017             | 2016
------------------------------------ | ---------------- | ---------------- | ----------------
operating profit as reported         | $ 1211           | $ 1194           | $ 1087
rationalization charges              | 14               | 4                | 22
kichler inventory step up adjustment | 40               | 2014             | 2014
operating profit as adjusted         | $ 1265           | $ 1198           | $ 1109
operating profit margins as reported | 14.5% ( 14.5 % ) | 15.6% ( 15.6 % ) | 14.8% ( 14.8 % )
operating profit margins as adjusted | 15.1% ( 15.1 % ) | 15.7% ( 15.7 % ) | 15.1% ( 15.1 % )


operations operating revenues millions 2014 2013 2012 % ( % ) change 2014 v 2013 2012.
 generate freight revenues by transporting freight materials from six commodity groups.
 freight revenues vary with volume ( carloads ) average revenue per car ( arc ).
 changes in price  traffic mix fuel surcharges drive arc.
 provide customers with contractual incentives for meeting or exceeding specified cumulative volumes shipping to from specific locations record as reductions to freight revenues based on actual projected future shipments.
 recognize freight revenues as shipments move from origin to destination.
 allocate freight revenues between reporting periods based on transit time recognize expenses as incur them.
 other revenues include revenues earned by subsidiaries from commuter rail operations accessorial revenues earn when customers retain equipment or perform additional services switching storage.
 recognize other revenues as perform services meet contractual obligations.
 freight revenues from all six commodity groups increased 2014 compared to 2013 driven by 7% ( 7 % ) volume growth core pricing gains of 2. 5% ( 2. 5 % ).
 volume growth from grain  frac sand  rock intermodal domestic international ) shipments offset declines in crude oil.
 freight revenues from five of six commodity groups increased 2013 compared to 2012.
 revenue from agricultural products down slightly compared to 2012.
 arc increased 5% ( 5 % ) driven by core pricing gains shifts in business mix automotive logistics management arrangement.
 volume flat year over year as growth in automotive  frac sand  crude oil domestic intermodal offset declines in coal  international intermodal grain shipments.
 fuel surcharge programs generated freight revenues of $ 2. 8 billion , $ 2. 6 billion  $ 2.6 billion in 2014 , 2013 2012  respectively.
 fuel surcharge 2014 increased 6% ( 6 % ) driven by 7% ( 7 % ) carloadings increase.
 fuel surcharge 2013 flat versus 2012 lower fuel price offset improved fuel recovery provisions lag effect of programs ( surcharges trail fluctuations fuel price two months ).
 in 2014  other revenue increased from 2013 due to higher revenues at subsidiaries broker intermodal automotive services accessorial revenue by increased volume per diem revenue for container usage previously included automotive freight revenue ).
 2013  other revenue increased from 2012 due to miscellaneous contract revenue higher revenues at subsidiaries broker intermodal automotive services.

millions         | 2014    | 2013    | 2012    | % (  % ) change 2014 v 2013 | % (  % ) change 2013 v 2012
---------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
freight revenues | $ 22560 | $ 20684 | $ 19686 | 9% ( 9 % )                  | 5% ( 5 % )
other revenues   | 1428    | 1279    | 1240    | 12% ( 12 % )                | 3% ( 3 % )
total            | $ 23988 | $ 21963 | $ 20926 | 9% ( 9 % )                  | 5% ( 5 % )


performance graph graph compares total return  assuming reinvestment of dividends on investment in company  based on performance of company's common stock with total return of standard & poor's 500 composite stock index dow jones united states travel and leisure index for five year period by measuring changes in common stock prices from december 31 , 2011 to december 31 , 2016.
 stock performance graph assumes for value of company's common stock and each index was $ 100 on december 31 , 2011 all dividends were reinvested.
 past performance not indicator of future results.

| 12/11  | 12/12  | 12/13  | 12/14  | 12/15  | 12/16
----------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd . | 100.00 | 139.36 | 198.03 | 350.40 | 437.09 | 362.38
s&p 500                       | 100.00 | 116.00 | 153.58 | 174.60 | 177.01 | 198.18
dow jones us travel & leisure | 100.00 | 113.33 | 164.87 | 191.85 | 203.17 | 218.56


6feb201418202649 performance graph table compares cumulative total shareholder return on our common stock with cumulative return of standard & poor 2019s 500 composite stock index ( 2018 2018s&p 500 index 2019 ) ii standard & poor 2019s industrials index ( 2018 2018s&p industrials index 2019 standard & poor 2019s consumer durables & apparel index ( 2018 2018s&p index 2019 ) from december 31, 2008 through december 31, 2013 when closing price common stock was $ 22. 77.
 graph assumes investments of $ 100 on december 31, 2008 in our common stock and each three indices reinvestment of dividends.
 $ 350. 00 $ 300. 00 $ 250. 00 $ 200. 00 $ 150. 00 $ 100. 00 $ 50. 00 performance graph.
 july 2007  board of directors authorized purchase of up to 50 million shares of common stock in open-market transactions.
 at december 31 , 2013  remaining authorization to repurchase up to 22. 6 million shares.
 during first quarter of 2013  repurchased and retired 1. 7 million shares of common stock for cash aggregating $ 35 million to offset dilutive impact of 2013 grant of 1. 7 million shares of long-term stock awards.
 not purchased shares since march 2013.

| 2009     | 2010     | 2011     | 2012     | 2013
------------------------------------- | -------- | -------- | -------- | -------- | --------
masco                                 | $ 128.21 | $ 120.32 | $ 102.45 | $ 165.80 | $ 229.59
s&p 500 index                         | $ 125.92 | $ 144.58 | $ 147.60 | $ 171.04 | $ 225.85
s&p industrials index                 | $ 120.19 | $ 151.89 | $ 150.97 | $ 173.87 | $ 243.73
s&p consumer durables & apparel index | $ 136.29 | $ 177.91 | $ 191.64 | $ 232.84 | $ 316.28


alexion pharmaceuticals , inc.
 notes to consolidated financial statements 2014 continued years ended december 31 , 2007 2006  five month period ended december 31 , 2005  year ended july 31 , 2005 amounts in thousands  except share per share amounts ) aggregate future minimum annual rental payments next five years thereafter under non-cancellable operating leases including facilities equipment ) as of december 31 , 2007 are:.
 9.
 commitments contingencies legal proceedings on march 16 , 2007  pdl biopharma , inc. pdl filed civil action against alexion u.
 district court for district of delaware.
 pdl claims infringement by alexion of pdl patents due to sales of soliris.
 pdl seeks unspecified damages no reasonable royalty  plus attorney 2019s fees.
 alexion denied pdl's claims.
 filed counterclaims seeking declarations of non-infringement invalidity of certain.
 patents held by pdl.
 alexion believes good valid defenses to pdl's claims intends to defend case pursue counterclaims.
 february 4 , 2008  sb2 , inc.
 filed civil action against alexion united states district court northern district of california.
 sb2  inc.
 claims willfull infringement by alexion of sb2.
 patents due to sales of soliris.
 sb2  inc.
 seeks unspecified monetary damages  equitable relief attorneys fees.
 alexion believes has good valid defenses to sb2's claims intends to defend case pursue counterclaims.
 results of civil actions cannot be predicted certainty due to early stages.
depending on outcome legal matters operating results company could be impacted through adjustments to cost of sales ( see notes 2 , 6 15 for additional information related to royalties ).
 product supply large-scale product supply agreement dated december 18 , 2002  or lonza agreement  between lonza sales ag and us relating to manufacture of soliris amended in june 2007.
 amended supply agreement to provide for additional purchase commitments of soliris of $ 30000 to $ 35000 through 2013.
 commitments may only be cancelled in limited circumstances.

2008       | $ 4935
---------- | ------
2009       | 3144
2010       | 3160
2011       | 3200
2012       | 2768
thereafter | 9934


welltower inc.
 notes to consolidated financial statements no longer present ( additional weight may be given to subjective evidence projections for growth ).
 valuation allowance rollforward summarized as for periods presented ( in thousands ) : year ended december 31 , 2017 2016 2015.
 result of certain acquisitions  subject to corporate level taxes for related asset dispositions during five-year period after assets owned by c corporation ( 201cbuilt-in gains tax 201d ).
 income potentially subject to this special corporate level tax generally equal to lesser of ( a ) excess of fair value of asset over adjusted tax basis as of date became reit asset , or ( b ) actual amount of gain.
 some but not all gains recognized during this period could be offset by available net operating losses and capital loss carryforwards.
 during year ended december 31 , 2016  acquired certain additional assets with built-in gains as of date of acquisition could be subject to built-in gains tax if disposed of prior to expiration of applicable ten-year period.
 not recorded deferred tax liability result of potential built-in gains tax based on intentions with respect to properties and available tax planning strategies.
 under provisions of reit investment diversification and empowerment act of 2007 ( 201cridea 201d ) for taxable years beginning after july 30 , 2008 , reit may lease 201cqualified health care properties 201d on arm 2019s-length basis to trs if property operated on behalf of subsidiary by person as 201celigible independent contractor. 201d rent received from trs will meet related party rent exception treated as 201crents from real property.201d a 201cqualified health care property 201d includes real property personal property necessary incidental to use of  hospital , nursing facility , assisted living facility  congregate care facility  qualified continuing care facility  or other licensed facility extends medical nursing ancillary services to patients.
 entered joint ventures structured under ridea.
 resident level rents related operating expenses for facilities reported in consolidated financial statements subject to federal, state foreign income taxes operations facilities included in trs.
 net operating loss carryforwards could be utilized to offset taxable income in future years.
 applicable statute of limitations generally subject to audit by internal revenue service ( 201cirs 201d ) for year ended december 31 , 2014 and subsequent years.
 statute of limitations may vary in states own properties conduct business.
 not expect to be subject to audit by state taxing authorities for any year prior to year ended december 31 , 2011.
 also subject to audit by canada revenue agency provincial authorities for periods subsequent to may 2012 related to entities acquired or formed in connection with acquisitions by u. k. 2019s hm revenue & customs for periods subsequent to august 2012 related to entities acquired or formed in connection with acquisitions.
 at december 31 , 2017  had net operating loss ( 201cnol 201d ) carryforward related to reit of $ 448475000.
 due to uncertainty regarding realization of deferred tax assets not recorded deferred tax asset related to nols generated by reit.
 these amounts can be used to offset future taxable income (/or taxable income for prior years if audit determines tax is owed ).
 reit entitled to utilize nols and tax credit carryforwards only to extent reit taxable income exceeds our deduction for dividends paid.
nol carryforwards generated through december 31 , 2017 expire through 2036.
 beginning with tax years after december 31  2017 tax cuts and jobs act ( 201ctax act 201d ) eliminates carryback period limits nols to 80% of taxable income replaces 20-year carryforward period with indefinite carryforward period.

2016                | year ended december 31 2017 2016 | year ended december 31 2017 2016 | year ended december 31 2017
------------------- | -------------------------------- | -------------------------------- | ---------------------------
beginning balance   | $ 96838                          | $ 98966                          | $ 85207
expense ( benefit ) | 30445                            | -2128 ( 2128 )                   | 13759
ending balance      | $ 127283                         | $ 96838                          | $ 98966


masco corporation notes to consolidated financial statements ( continued ) c.
 acquisitions on march 9 , 2018  acquired substantially all net assets of l.
 kichler co.
 ( "kichler" ) , leader in decorative residential and light commercial lighting products , ceiling fans and led lighting systems.
 business expands product offerings to customers.
 results of acquisition for period from acquisition date included in consolidated financial statements reported in decorative architectural products segment.
 recorded $ 346 million of net sales result acquisition during 2018.
 purchase price , net of $ 2 million cash acquired , consisted of $ 549 million paid with cash on hand.
 since acquisition revised allocation of purchase price to identifiable assets and liabilities based on analysis of information as of acquisition date made available through december 31 , 2018.
 allocation will continue to be updated through measurement period  if necessary.
 preliminary allocation of fair value of acquisition of kichler summarized in following table , in millions.
 goodwill acquired  generally tax deductible  related primarily to operational and financial synergies expect from combining kichler's operations into business  assembled workforce.
 other intangible assets acquired consist of $ 59 million of indefinite-lived intangible assets  related to trademarks , and $ 181 million of definite-lived intangible assets.
 definite-lived intangible assets consist of $ 145 million related to customer relationships  amortized straight-line basis over 20 years $ 36 million of other definite-lived intangible assets  amortized over weighted average amortization period of three years.
 in fourth quarter of 2017  acquired mercury plastics , inc., plastics processor manufacturer of water handling systems for appliance and faucet applications , for approximately $ 89 million in cash.
 business included in plumbing products segment.
 acquisition enhances our ability to develop faucet technology provides continuity of supply of quality faucet components.
 connection with acquisition recognized $ 38 million of goodwill  tax deductible related primarily to expected synergies from combining operations into our business.

| initial    | revised
-------------------------- | ---------- | ----------
receivables                | $ 101      | $ 100
inventories                | 173        | 166
prepaid expenses and other | 5          | 5
property and equipment     | 33         | 33
goodwill                   | 46         | 64
other intangible assets    | 243        | 240
accounts payable           | -24 ( 24 ) | -24 ( 24 )
accrued liabilities        | -25 ( 25 ) | -30 ( 30 )
other liabilities          | -4 ( 4 )   | -5 ( 5 )
total                      | $ 548      | $ 549


we received commitments for $ 30. 0 billion in debt financing to fund transactions comprised of i ) a $ 4. 0 billion secured revolving credit facility , ii ) $ 7. 0 billion term loan credit facility and iii ) $ 19. 0 billion secured bridge loan facility.
 reliance on financing from $ 19. 0 billion secured bridge loan facility commitment is intended to be reduced through one or more secured note offerings or other long-term financings prior to merger closing.
 no assurance we will able to issue such secured notes or other long-term financings on terms acceptable or all , especially in recent debt market volatility , we may have to exercise some or all of commitments under secured bridge facility to fund transactions.
 accordingly costs of financing for transactions may be higher than expected.
 credit rating downgrades could adversely affect businesses , cash flows , financial condition and operating results of t-mobile and  transactions combined company.
 credit ratings impact cost and availability of future borrowings  and , cost of capital.
 current ratings reflect each rating agency 2019s opinion of our financial strength , operating performance and ability to meet debt obligations or  obligations to combined company 2019s obligors.
 each rating agency reviews these ratings periodically can no assurance that such ratings will be maintained in future.
 downgrade in rating of us and/or sprint could adversely affect businesses , cash flows  financial condition and operating results of t- mobile and  following transactions combined company.
 incurred , and will incur , direct and indirect costs as a result of transactions.
incurred  and will incur substantial expenses in with result completing transactions  over period time following completion transactions combined company expects to incur substantial expenses integrating coordinating our sprint 2019s businesses , operations  policies procedures.
 portion of transaction costs related to transactions will be incurred regardless of transactions completed.
 assumed certain level of transaction expenses will be incurred  factors beyond our control could affect total amount or timing of these expenses.
 many expenses incurred difficult to estimate accurately.
 expenses will exceed costs historically borne by us.
 costs could adversely affect our financial condition and results of operations prior to transactions and financial condition results of operations combined company following transactions.
 item 1b.
 unresolved staff comments item 2.
 properties as of december 31 , 2018  our significant properties we primarily lease use in with switching centers , data centers  call centers warehouses were as follows:.
 as of december 31 , 2018 primarily leased : 2022 approximately 64000 macro towers 21000 distributed antenna system and small cell sites.
 2022 approximately 2200 t-mobile and metro by t-mobile retail locations  including stores and kiosks size from approximately 100 square feet to 17000 square feet.
 2022 office space totaling approximately 1000000 square feet for our corporate headquarters in bellevue , washington.
 in january 2019  executed leases totaling approximately 170000 additional square feet for corporate headquarters.
 use these offices for engineering and administrative purposes.
 2022 office space throughout u. s.  totaling approximately 1700000 square feet  for use by regional offices primarily for administrative , engineering and sales purposes.

| approximate number | approximate size in square feet
----------------- | ------------------ | -------------------------------
switching centers | 61                 | 1300000
data centers      | 6                  | 500000
call center       | 17                 | 1300000
warehouses        | 21                 | 500000


december 31 , 2012 and 2011  had working capital surplus.
 reflects strong cash position provides enhanced liquidity in uncertain economic environment.
 believe adequate access to capital markets to meet foreseeable cash requirements sufficient financial capacity to satisfy current liabilities.
 cash flows millions 2012 2011 2010.
 operating activities higher net income in 2012 increased cash provided by operating activities compared to 2011 offset by lower tax benefits from bonus depreciation ) payments for past wages based on national labor negotiations settled earlier this year.
 higher net income lower cash income tax payments in 2011 increased cash operating activities compared to 2010.
 tax relief , unemployment insurance reauthorization  job creation act of 2010 provided for 100% ( 100 % ) bonus depreciation for qualified investments during 2011  50% ( 50 % ) bonus depreciation for qualified investments during 2012.
 result act company deferred substantial portion of 2011 income tax expense.
 deferral decreased 2011 income tax payments contributing to positive operating cash flow.
 in future years additional cash used to pay income taxes previously deferred.
 adoption of new accounting standard in january of 2010 changed accounting treatment for receivables securitization facility from sale of undivided interests operating activity to secured borrowing financing activity ) decreased cash provided by operating activities by $ 400 million in 2010.
 investing activities higher capital investments in 2012 drove increase in cash used in investing activities compared to 2011.
 included in capital investments in 2012 was $ 75 million for early buyout of 165 locomotives under long-term operating and capital leases during first quarter of 2012 exercised due to favorable economic terms and market conditions.
 higher capital investments offset by higher proceeds from asset sales in 2011 drove increase in cash used in investing activities compared to 2010.

cash flowsmillions                     | 2012           | 2011           | 2010
-------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities  | $ 6161         | $ 5873         | $ 4105
cash used in investing activities      | -3633 ( 3633 ) | -3119 ( 3119 ) | -2488 ( 2488 )
cash used in financing activities      | -2682 ( 2682 ) | -2623 ( 2623 ) | -2381 ( 2381 )
net change in cash and cashequivalents | $ -154 ( 154 ) | $ 131          | $ -764 ( 764 )


november 1 , 2016 , management evaluated net assets of alcoa corporation for potential impairment determined no impairment charge required.
 cash flows related to alcoa corporation not segregated included in statement of consolidated cash flows for 2016.
 following table presents depreciation , depletion amortization , restructuring other charges , purchases of property , plant and equipment of discontinued operations related to alcoa corporation:.
.
 subsequent events management evaluated all activity of arconic concluded no subsequent events occurred require recognition in consolidated financial statements or disclosure in notes to consolidated financial statements, except as noted below : january 22 , 2019 , company announced board of directors ( board ) determined to no longer pursue potential sale of arconic as part of strategy and portfolio review.
 february 6 , 2019 , company announced board appointed john c.
 plant , current chairman of board , as chairman and chief executive officer of company , effective february 6 , 2019 , to succeed chip blankenship , who ceased to serve as chief executive officer company resigned as member of board.
 in company announced board appointed elmer l.
 doty , current member of board , as president and chief operating officer , newly created position , effective february 6 , 2019.
 mr.
 doty will remain member of board.
 company announced arthur d.
 collins , jr. , current member of board , appointed interim lead independent director of company  effective february 6 , 2019.
february 8 , 2019 , company announced key initiatives ongoing strategy and portfolio review : plans to reduce operating costs maximize impact in 2019 ; planned separation of portfolio into engineered products and forgings ( ep&f ) and global rolled products ( grp )  with spin-off of one businesses ; potential sale of businesses not fit into ep&f or grp ; execute previously authorized $ 500 share repurchase program in first half of 2019 ; board authorized additional $ 500 of share repurchases  effective through end of 2020 ; plans to reduce quarterly common stock dividend from $ 0. 06 to $ 0. 02 per share.
 february 19 , 2019  company entered accelerated share repurchase ( 201casr 201d ) agreement with jpmorgan chase bank to repurchase $ 700 of common stock  to share repurchase program authorized by board.
 under asr agreement  arconic will receive initial delivery of approximately 32 million shares on february 21 , 2019.
 final number of shares to be repurchased based on volume-weighted average price of arconic 2019s common stock during term of transaction , less discount.
 asr agreement expected to be completed during first half of company will evaluate organizational structure with planned separation of portfolio and changes to reportable segments expected in first half of 2019.

for the year ended december 31,         | 2016
--------------------------------------- | -----
depreciation depletion and amortization | $ 593
restructuring and other charges         | $ 102
capital expenditures                    | $ 298


liquidity and capital resources as of december 31, 2011  principal sources of liquidity included cash , cash equivalents  receivables securitization facility  revolving credit facility  availability of commercial paper other sources of financing through capital markets.
 had $ 1. 8 billion of committed credit available under our credit facility no borrowings outstanding as of december 31 , 2011.
 not make borrowings under this facility during 2011.
 value of outstanding undivided interest held by investors under receivables securitization facility was $ 100 million as of december 31, 2011 included in consolidated statements of financial position as debt due after one year.
 receivables securitization facility obligates us to maintain investment grade bond rating.
 if bond rating to deteriorate could adverse impact on liquidity.
 access to commercial paper other capital market financings dependent on market conditions.
 deterioration of operating results or financial condition to internal external factors could negatively impact ability to access capital markets source liquidity.
 access to liquidity through capital markets dependent on financial stability.
 expect will continue to have access to liquidity by issuing bonds to public or private investors based on assessment of current condition of credit markets.
 at december 31 , 2011 and 2010  had working capital surplus.
 reflects strong cash position provides enhanced liquidity in uncertain economic environment.
 believe have adequate access to capital markets to meet cash requirements sufficient financial capacity to satisfy current liabilities.
 cash flows millions 2011 2010 2009.
 operating activities higher net income lower cash income tax payments in 2011 increased cash provided by operating activities compared to 2010.
tax relief , unemployment insurance reauthorization  job creation act of 2010  enacted in december 2010  provided for 100% ( 100 % ) bonus depreciation for qualified investments during 2011  50% ( 50 % ) bonus depreciation for qualified investments during 2012.
 result act company deferred substantial portion of 2011 income tax expense.
 deferral decreased 2011 income tax payments  contributing to positive operating cash flow.
 in future years additional cash used to pay income taxes previously deferred.
 adoption of new accounting standard in january 2010 changed accounting treatment for receivables securitization facility from sale of undivided interests operating activity ) to secured borrowing ( financing activity ) decreased cash by operating activities by $ 400 million in 2010.
 higher net income in 2010 increased cash operating activities compared to 2009.
 investing activities higher capital investments offset by higher proceeds from asset sales in 2011 drove increase in cash used in investing activities compared to 2010.
 higher capital investments lower proceeds from asset sales in 2010 drove increase in cash used in investing activities compared to 2009.

cash flowsmillions                     | 2011           | 2010           | 2009
-------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities  | $ 5873         | $ 4105         | $ 3204
cash used in investing activities      | -3119 ( 3119 ) | -2488 ( 2488 ) | -2145 ( 2145 )
cash used in financing activities      | -2623 ( 2623 ) | -2381 ( 2381 ) | -458 ( 458 )
net change in cash and cashequivalents | $ 131          | $ -764 ( 764 ) | $ 601


equity compensation plan information table presents equity securities available for issuance under equity compensation plans as of december 31 , 2012.
 equity compensation plan information plan category number of securities to be issued upon exercise of outstanding options , warrants and rights 1 weighted-average exercise price of outstanding options , warrants and rights 2 number of securities remaining available for future issuance under equity plans ( excluding securities reflected in column ( a ) ) b ) c ) equity compensation plans approved by security holders 3946111 $ 34. 67 3608527 equity compensation plans not approved by security holders 3 2014.
 includes grants under huntington ingalls industries , inc.
 2012 long-term incentive stock plan ( "2012 plan" ) approved by stockholders on may 2 , 2012  and huntington ingalls industries , inc.
 2011 long-term incentive stock plan ( "2011 plan" ) approved by sole stockholder prior to spin-off from northrop grumman corporation.
 shares 1166492 subject to stock options  2060138 subject to outstanding restricted performance stock rights  641556 were restricted stock rights  63033 were stock rights granted under 2011 plan.
 number includes 9129 stock rights and 5763 restricted performance stock rights granted under 2012 plan  assuming target performance achievement.
 2 weighted average exercise price of 1166492 outstanding stock options only.
 no awards made under plans not approved by security holders.
 item 13.
 certain relationships and related transactions , and director independence information relationships related transactions director independence will incorporated by reference to proxy statement for 2013 annual meeting of stockholders to filed within 120 days after end of company 2019s fiscal year.
 item 14.
principal accountant fees and services information principal accountant fees services incorporated herein by reference to proxy statement for our 2013 annual meeting of stockholders filed within 120 days after end of company 2019s fiscal year.

plan category                                                    | number of securities to be issued upon exercise of outstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-average exercise price of outstanding optionswarrants and rights ( 2 ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securitiesreflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders           | 3946111                                                                                | $ 34.67                                                                         | 3608527
equity compensation plans not approved by security holders ( 3 ) | 2014                                                                                | 2014                                                                            | 2014
total                                                            | 3946111                                                                                | $ 34.67                                                                         | 3608527


as of december 31 , 2017 , aggregate future minimum payments under non-cancelable operating leases consist following ( in thousands ) : years ending december 31.
 rent expense for all operating leases amounted to $ 9. 4 million , $ 8. 1 million and $ 5. 4 million for years ended december 31 , 2017 , 2016 and 2015 , respectively.
 financing obligation 2014build-to-suit lease in august 2012 , executed lease for building under construction in santa clara , california as our headquarters.
 lease term is 120 months commenced in august 2013.
 based on terms lease agreement due to our involvement in aspects construction we deemed owner of building ( for accounting purposes only ) during construction period.
 upon completion of construction in 2013  concluded we had continued economic involvement in facility did not meet with provisions for sale-leaseback accounting.
 continue to maintain involvement in property post construction lack transferability of risks and rewards of ownership , due to required maintenance of $ 4. 0 million letter of credit , in addition to ability option to sublease portion of leased building for fees higher than base rate.
 lease is accounted for as financing obligation lease payments attributed to 1 reduction of principal financing obligation ; 2 ) imputed interest expense ; 3 ) land lease expense , imputed cost to lease underlying land of building.
 at conclusion of initial lease term  will de-recognize both net book values of asset and remaining financing obligation.
 as of december 31 , 2017 and 2016 , recorded assets of $ 53.4 million  representing total costs building improvements incurred including costs paid by lessor ( legal owner ) additional improvement costs paid by us corresponding financing obligation of $ 39. 6 million $ 41. 2 million  respectively.
 as of december 31 , 2017 , $ 1. 9 million $ 37. 7 million recorded as short-term and long-term financing obligations.
 land lease expense under our lease financing obligation amounted to $ 1. 3 million for each years ended december 31 , 2017, 2016 2015.

2018                                | $ 9127
----------------------------------- | -------
2019                                | 8336
2020                                | 8350
2021                                | 7741
2022                                | 7577
thereafter                          | 9873
total minimum future lease payments | $ 51004


unallocated corporate items for fiscal 2018 , 2017 2016 included:.
 net mark-to-market valuation of certain commodity positions recognized in corporate items $ 32. 1 $ 13. 9 $ 62. 8 as of may 27 , 2018  net notional value of commodity derivatives was $ 238. 8 million  $ 147. 9 million related to agricultural inputs $ 90. 9 million to energy inputs.
 contracts relate to inputs utilized within next 12 months.
 interest rate risk exposed to interest rate volatility future issuances of fixed-rate debt  existing future issuances floating-rate debt.
 primary exposures include.
 treasury rates , libor , euribor  commercial paper rates in united states and europe.
 use interest rate swaps , forward-starting interest rate swaps treasury locks to hedge exposure to interest rate changes reduce volatility financing costs achieve desired proportion of fixed rate versus floating-rate debt  based on current projected market conditions.
 swaps agree with counterparty to exchange difference between fixed-rate and floating-rate interest amounts based on agreed upon notional principal amount.
 floating interest rate exposures 2014 floating-to-fixed interest rate swaps accounted for as cash flow hedges hedges forecasted issuances debt.
 effectiveness assessed based on effective hypothetical derivative method or changes in present value of interest payments on underlying debt.
 effective gains and losses deferred to aoci reclassified into earnings over life of associated debt.
 ineffective gains and losses recorded as net interest.
 hedge ineffectiveness was $ 2. 6 million loss in fiscal 2018 less than $ 1 million in fiscal 2017 and 2016.
fixed interest rate exposures 2014 fixed-to-floating interest rate swaps accounted for as fair value hedges effectiveness assessed based on changes in fair value underlying debt derivatives using incremental borrowing rates available on loans with similar terms maturities.
 ineffective gains losses on derivatives underlying hedged items recorded as net interest.
 hedge ineffectiveness was $ 3. 4 million loss in fiscal 2018 $ 4. 3 million gain in fiscal 2017 less than $ 1 million in fiscal 2016.
 advance of planned debt financing related to acquisition of blue buffalo entered into $ 3800. 0 million of treasury locks due april 19 , 2018 average fixed rate of 2. 9 percent $ 2300. 0 million entered third quarter of fiscal 2018 $ 1500. 0 million entered fourth quarter of fiscal 2018.
 treasury locks cash settled for $ 43. 9 million during fourth quarter fiscal 2018 concurrent with issuance of $ 850. 0 million 5. 5-year fixed-rate notes $ 800. 0 million 7-year fixed- rate notes $ 1400. 0 million 10-year fixed-rate notes $ 500. 0 million 20-year fixed-rate notes $ 650. 0 million 30-year fixed-rate notes.
 advance of planned debt financing in fiscal 2018 entered into $ 500. 0 million of treasury locks due october 15 , 2017 average fixed rate of 1. 8 percent.
 treasury locks cash settled for $ 3. 7 million during second quarter of fiscal 2018 concurrent with issuance $ 500. 0 million 5-year fixed-rate notes.

in millions                                                                                | fiscal year 2018 | fiscal year 2017 | fiscal year 2016
-------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
net gain ( loss ) onmark-to-marketvaluation of commodity positions                                       | $ 14.3           | $ -22.0 ( 22.0 ) | $ -69.1 ( 69.1 )
net loss on commodity positions reclassified from unallocated corporate items to segmentoperating profit | 11.3             | 32.0             | 127.9
netmark-to-marketrevaluation of certain grain inventories                                                | 6.5              | 3.9              | 4.0
netmark-to-marketvaluation of certain commodity positions recognized in unallocated corporate items      | $ 32.1           | $ 13.9           | $ 62.8


entergy gulf states louisiana  l.
 management's financial discussion and analysis sources of capital sources to meet capital requirements include : internally generated funds ; cash on hand ; debt or preferred membership interest issuances ; bank financing under new or existing facilities.
 may refinance or redeem debt and preferred equity/membership interests prior to maturity market conditions and interest and dividend rates favorable.
 all debt common preferred equity/membership interest issuances by require prior regulatory approval.
 preferred equity/membership interest debt issuances subject to issuance tests in corporate charter , bond indentures other agreements.
 entergy louisiana has sufficient capacity under these tests to meet foreseeable capital needs.
 entergy gulf states  inc.
 filed with ferc application behalf for authority to issue up to $ 200 million of short- term debt  up to $ 500 million of tax-exempt bonds up to $ 750 million of other long-term securities including common preferred membership interests long-term debt.
 on november 8 , 2007 ferc issued orders granting requested authority for two-year period ending november 8 , 2009.
 entergy gulf states louisiana's receivables from ( payables to ) money pool were as follows as of december 31 for each following years:.
 see note 4 to financial statements for description of money pool.
 entergy gulf states louisiana has credit facility of $ 100 million scheduled to expire in august 2012.
 no borrowings outstanding under credit facility as of december 31 , 2008.
 in may 2008 entergy louisiana issued $ 375 million of 6. 00% ( 6. 00 % ) series first mortgage bonds due may 2018.
 proceeds used to pay at maturity portion of $ 325 million of 3.6% ( 3. 6 % ) series first mortgage bonds due june 2008 not assumed by entergy texas to redeem prior maturity $ 189. 7 million of $ 350 million floating rate series of first mortgage bonds due december 2008 for other general corporate purposes.
 portion of $ 325 million of 3. 6% ( 3. 6 % ) series first mortgage bonds due june 2008 assumed by entergy texas paid at maturity by entergy texas in june 2008 bond series no longer outstanding.
 portion of $ 350 million floating rate series of first mortgage bonds due december 2008 assumed by entergy texas paid at maturity by entergy texas in december 2008 bond series no longer outstanding.
 hurricane rita katrina in august september 2005  hurricanes hit entergy gulf states inc. 's jurisdictions in louisiana texas.
 storms resulted in power outages damage to electric distribution  transmission generation infrastructure temporary loss of sales customers due to mandatory evacuations.
 entergy gulf states louisiana pursuing initiatives to recover storm restoration business continuity costs incremental losses.
 initiatives include obtaining reimbursement of certain costs covered by insurance pursuing recovery through existing or new rate mechanisms regulated by ferc local regulatory bodies with securitization.

2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 11589          | $ 55509          | $ 75048          | $ 64011


ordinary course of business , based on evaluations of geologic trends prospective economics , allowed certain lease acreage to expire may allow additional acreage to expire future.
 if production not established or no other action to extend terms of leases , licenses or concessions , undeveloped acreage listed in table below will expire over next three years.
 plan to continue terms of certain licenses concession areas or retain leases through operational or administrative actions ; majority of undeveloped acres associated with other africa listed in table below pertains to licenses in ethiopia and kenya, for executed agreements in 2015 to sell.
 kenya transaction closed in february 2016 ethiopia transaction expected to close first quarter of 2016.
 see item 8.
 financial statements supplementary data - note 5 to consolidated financial statements for additional information about disposition.
 net undeveloped acres expiring year ended december 31.

( in thousands )    | net undeveloped acres expiring year ended december 31 , 2016 | net undeveloped acres expiring year ended december 31 , 2017 | net undeveloped acres expiring year ended december 31 , 2018
------------------- | ------------------------------------------------------------ | ------------------------------------------------------------ | ------------------------------------------------------------
u.s .               | 68                                                           | 89                                                           | 128
e.g .               | 2014                                                         | 92                                                           | 36
other africa        | 189                                                          | 4352                                                         | 854
total africa        | 189                                                          | 4444                                                         | 890
other international | 2014                                                         | 2014                                                         | 2014
total               | 257                                                          | 4533                                                         | 1018


options during fiscal 2010 , fiscal 2009 fiscal 2008 was $ 240. 4 million , $ 15. 1 million $ 100. 6 mil- lion , respectively.
 total grant-date fair value of stock options vested during fiscal 2010 2008 was approximately $ 67. 2 million , $ 73. 6 million $ 77. 6 million , respectively.
 proceeds from stock option exercises employee stock plans in company 2019s statement of cash flows of $ 216. 1 million , $ 12. 4 million $ 94. 2 million for fiscal 2010 2009 2008  are net of value of shares surrendered by employees in limited circumstances to satisfy exercise price of options satisfy employee tax obligations upon vesting of restricted stock units connection with exercise of stock options granted to company 2019s employees under 2019s equity compensation plans.
 withholding amount is based on company 2019s minimum statutory withholding requirement.
 summary of company 2019s restricted stock unit award activity as of october 30, 2010 and changes during year then ended is presented below : restricted outstanding weighted- average grant- date fair value per share.
 as of october 30 , 2010 was $ 95 million of total unrecognized compensation cost related to unvested share-based awards of stock options and restricted stock units.
 cost expected to be recognized over period of 1. 4 years.
 common stock repurchase program company 2019s common stock repurchase program in place since august 2004.
 board of directors authorized company to repurchase $ 4 billion of company 2019s common stock under program.
 program company may repurchase outstanding shares of common stock in open market and through privately negotiated transactions.
unless terminated earlier by resolution company 2019s board of directors  repurchase program expire when company repurchased all shares authorized under program.
 as of october 30 , 2010  company had repurchased total approximately 116. 0 million shares of common stock for approximately $ 3948. 2 million under program.
 additional $ 51. 8 million remains available for repurchase shares under current authorized program.
 repurchased shares held as authorized but unissued shares of common stock.
 future common stock repurchases dependent upon factors including cash available company in united states company 2019s financial performance  outlook liquidity.
 company also repurchases shares in settlement of employee tax withholding obligations due upon vesting of restricted stock units  or in certain limited circumstances to satisfy exercise price of options granted to company 2019s employees under company 2019s equity compensation plans.
 preferred stock company has 471934 authorized shares of $ 1. 00 par value preferred stock , none is issued or outstanding.
 board of directors authorized to fix designations  relative rights  preferences limitations on preferred stock at time of issuance.
 analog devices , inc.
 notes to consolidated financial statements 2014 ( continued )

| restricted stock units outstanding | weighted- average grant- date fair value per share
----------------------------------------------------- | ---------------------------------- | --------------------------------------------------
restricted stock units outstanding at october 31 2009 | 135                                | $ 22.19
units granted                                         | 1171                               | $ 28.86
restrictions lapsed                                   | -19 ( 19 )                         | $ 24.70
units forfeited                                       | -22 ( 22 )                         | $ 29.10
restricted stock units outstanding at october 30 2010 | 1265                               | $ 28.21


declaration payment of future quarterly dividends at discretion of our board may be adjusted as business needs or market conditions change.
 under terms merger agreement we agreed with aetna to coordinate declaration payment of dividends so stockholders do not fail to receive quarterly dividend around time closing merger.
 on october 29 , 2015  board declared cash dividend of $ 0. 29 per share paid on january 29 , 2016 to stockholders of record on december 30 , 2015 , for aggregate amount of $ 43 million.
 stock total return performance graph compares our total return to stockholders with returns of standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) dow jones us select health care providers index ( 201cpeer group 201d ) for five years ended december 31 , 2015.
 graph assumes investment of $ 100 in each our common stock , s&p 500 , peer group on december 31 , 2010  dividends reinvested when paid.
 stock price performance in graph not necessarily indicative of future stock price performance.

| 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum        | $ 100      | $ 162      | $ 128      | $ 195      | $ 274      | $ 343
s&p 500    | $ 100      | $ 102      | $ 118      | $ 157      | $ 178      | $ 181
peer group | $ 100      | $ 110      | $ 129      | $ 177      | $ 226      | $ 239