kimco realty corporation and subsidiaries notes to consolidated financial statements continued during 2012  albertsons joint venture distributed $ 50. 3 million company received $ 6. 9 million  recognized as income from cash received in excess of company 2019s investment  before income tax included in equity in income from other real estate investments net on company 2019s consolidated statements of income.
 in january 2015  company invested additional $ 85. 3 million new equity in company 2019s albertsons joint venture to facilitate acquisition of safeway inc.
 by cerberus lead consortium.
 kimco now holds 9. 8% ( 9. 8 % ) ownership interest in combined company operates 2230 stores across 34 states.
 leveraged lease - during june 2002  company acquired 90% ( 90 % ) equity participation interest in existing leveraged lease of 30 properties.
 properties leased under long-term bond-type net lease primary term expires in 2016 lessee having certain renewal option rights.
 company 2019s cash equity investment was $ 4. 0 million.
 equity investment reported as net investment in leveraged lease in accordance with fasb 2019s lease guidance.
 as of december 31 , 2014  19 properties sold proceeds from sales used to pay down $ 32. 3 million in mortgage debt remaining 11 properties remain encumbered by third-party non-recourse debt of $ 11. 2 million scheduled to fully amortize during primary term of lease from portion of periodic net rents receivable under net lease.
 as equity participant in leveraged lease company has no recourse obligation for principal or interest payments on debt collateralized by first mortgage lien on properties collateral assignment of lease.
 obligation offset against related net rental receivable under lease.
at december 31 , 2014 and 2013 , company 2019s net investment in leveraged lease consisted of following ( in millions ) :.
 9.
 variable interest entities : consolidated ground-up development projects included within company 2019s ground-up development projects at december 31 , 2014 , is entity is a vie  for company is primary beneficiary.
 entity established to develop real estate property long-term investment.
 company 2019s involvement with entity is through majority ownership and management of property.
 entity deemed a vie based on equity investment at risk not sufficient to permit entity finance activities without additional financial support.
 initial equity contributed entity not sufficient to fully finance real estate construction as development costs funded by partners throughout construction period.
 company determined primary beneficiary of vie result of controlling financial interest.
 at december 31 , 2014 , total assets of ground-up development vie were $ 77. 7 million total liabilities were $ 0. 1 million.
 classification of assets primarily within real estate under development in company 2019s consolidated balance sheets and classifications of liabilities are primarily within accounts payable and accrued expenses on company 2019s consolidated balance sheets.
 substantially all of projected development costs to be funded for this ground-up development vie , aggregating $ 32. 8 million , funded with capital contributions from company and by outside partners when contractually obligated.
 company not provided financial support to this vie not previously contractually required to provide.

| 2014           | 2013
------------------------------------- | -------------- | --------------
remaining net rentals                 | $ 8.3          | $ 15.9
estimated unguaranteed residual value | 30.3           | 30.3
non-recourse mortgage debt            | -10.1 ( 10.1 ) | -16.1 ( 16.1 )
unearned and deferred income          | -12.9 ( 12.9 ) | -19.9 ( 19.9 )
net investment in leveraged lease     | $ 15.6         | $ 10.2


asian industrial packaging net sales 2007 $ 265 million compared $ 180 million 2006.
 2005 net sales $ 105 million sub- sequent to international paper 2019s acquisition majority interest business august 2005.
 operating profits totaled $ 6 million 2007 $ 3 million 2006 compared loss $ 4 million consumer packaging demand pricing consumer packaging prod ucts correlate with consumer spending general economic activity.
 prices volumes major factors affecting profitability consumer packaging raw material energy costs freight costs manufacturing efficiency product mix.
 consumer packaging net sales increased 12% ( 12 % ) compared with 2006 24% ( 24 % ) compared 2005.
 operating profits rose 15% ( 15 % ) from 2006 24% ( 24 % ) from 2005 levels.
 benefits from improved average sales price realizations ( $ 52 million ) higher sales volumes for.
 european coated paperboard ( $ 9 million ) favorable mill operations ( $ 14 million ) contributions from international paper & sun cartonboard co. , ltd.
 acquired 2006 ( $ 16 million ) offset by higher raw material energy costs ( $ 53 million ) unfavorable mix of products sold ( $ 4 million ) increased freight costs ( $ 5 million ) other costs ( $ 3 million ).
 consumer packaging millions 2007 2006 2005.
 north american consumer packaging net sales $ 2. 4 billion in 2007 and 2006 com pared with $ 2. 2 billion 2005.
 operating earnings $ 143 million in 2007 improved from $ 129 million 2006 $ 121 million in 2005.
 coated paperboard sales volumes increased 2007 compared 2006 particularly folding carton board reflecting improved demand.
 average sales price realizations improved 2007 for folding carton board cup stock.
 impact higher sales prices improved manufacturing performance mills offset negative effects higher wood energy costs.
 foodservice sales volumes slightly higher 2007 than 2006.
sales prices higher reflecting price increases to recover raw material cost increases.
 more favorable mix of hot cups food containers led to higher average margins.
 raw material costs for bleached board polystyrene higher than 2006 increases partially offset by improved manufacturing costs increased productivity reduced waste.
 shorewood sales volumes in 2007 declined from 2006 levels due to weak demand in home enter- tainment , tobacco display markets demand stronger in consumer products segment.
 sales margins declined from 2006 reflect less favorable mix of products sold.
 raw material costs higher for bleached board  impact offset by improved manufacturing operations lower operating costs.
 charges to restructure operations impacted 2007 results.
 entering 2008  coated paperboard sales volumes expected to even with fourth quarter of 2007 average sales price realizations expected to slightly improve.
 earnings bene- fit from fewer planned mill maintenance outages compared 2007 quarter.
 costs for wood  polyethylene energy expected to higher.
 foodservice results expected to benefit from increased sales volumes higher sales price realizations.
 shorewood sales volumes for first quarter 2008 expected to seasonally decline negative impact partially offset by benefits from cost improve- ments with prior-year restructuring actions.
 european consumer packaging net sales in 2007 were $ 280 million compared with $ 230 million in 2006 $ 190 million in 2005.
 sales volumes in 2007 higher than 2006 reflecting stronger market demand improved productivity mill.
 average sales price realizations improved in 2007.
 operating earnings in 2007 of $ 37 million declined from $ 41 million in 2006 and $ 39 million in 2005.
 additional contribution from higher net sales offset by higher input costs for wood  energy freight.
 entering 2008  sales volumes and prices expected to comparable to fourth quarter.
machine performance sales mix expected to improve ; , wood costs expected to higher , especially in russia due to strong demand ahead of tariff increases , energy costs anticipated seasonally higher.

in millions      | 2007   | 2006   | 2005
---------------- | ------ | ------ | ------
sales            | $ 3015 | $ 2685 | $ 2435
operating profit | $ 198  | $ 172  | $ 160


schedule of future minimum rental payments required under long-term operating leases at october 29 , 2011 : fiscal years operating leases.
 12.
 commitments and contingencies time to time in ordinary course company 2019s business  claims , charges litigation asserted or commenced against company from related to contractual matters patents trademarks personal injury environmental matters product liability insurance coverage personnel employment disputes.
 company can give no assurance it will prevail.
 company not believe current legal matters will material adverse effect on company 2019s financial position  results of operations or cash flows.
 13.
 retirement plans company and subsidiaries have savings and retirement plans covering all employees.
 company maintains defined contribution plan for benefit of eligible u. s.
 employees.
 plan provides for company contributions of up to 5% ( 5 % ) of each participant 2019s total eligible compensation.
 company contributes amount equal to each participant 2019s pre-tax contribution up to maximum of 3% ( 3 % ) of each participant 2019s total eligible compensation.
 total expense related to defined contribution plan for u. s.
 employees was $ 21. 9 million in fiscal 2011 , $ 20. 5 million in fiscal 2010 $ 21. 5 million in fiscal 2009.
 company has various defined benefit pension and other retirement plans for certain non-u. s.
 employees consistent with local statutory requirements practices.
 total expense related to defined benefit pension retirement plans for certain non-u. s.
 employees was $ 21. 4 million in fiscal 2011  $ 11. 7 million in fiscal 2010 $ 10. 9 million in fiscal 2009.
 non-u. s.
 plan company 2019s funding policy for foreign defined benefit pension plans consistent with local requirements of each country.
 plans 2019 assets consist primarily of u. s.
non-u. s.
 equity securities  bonds property cash.
 benefit obligations related assets under plans measured at october 29 , 2011 october 30 , 2010.
 analog devices .
 notes to consolidated financial statements 2014 ( continued

fiscal years | operating leases
------------ | ----------------
2012         | $ 17590
2013         | 12724
2014         | 6951
2015         | 5649
2016         | 3669
later years  | 19472
total        | $ 66055


backlog backlog increased in 2015 compared to 2014 primarily due to higher orders on f-35 c-130 programs.
 backlog decreased slightly in 2014 compared to 2013 primarily due to lower orders on f-16 f-22 programs.
 expect aeronautics 2019 2016 net sales to increase mid-single digit percentage range compared to 2015 due to increased volume on f-35 c-130 programs partially offset by decreased volume f-16 program.
 operating profit expected to increase low single-digit percentage range driven by increased volume on f-35 program offset by contract mix slight decrease in operating margins between years.
 information systems & global solutions is&gs business segment provides advanced technology systems expertise  integrated information technology solutions management services broad spectrum applications for civil , defense  intelligence other government customers.
 is&gs 2019 technical services business provides comprehensive portfolio of technical sustainment services.
 is&gs has portfolio of many smaller contracts business segments.
 is&gs impacted by continued downturn in federal agencies 2019 information technology budgets increased re-competition on existing contracts fragmentation of large contracts into multiple smaller contracts awarded basis price.
 is&gs 2019 operating results included ( in millions ) :.
 2015 compared to 2014 is&gs 2019 net sales decreased $ 58 million , or 1% ( 1 % ) , in 2015 compared to 2014.
 decrease attributable to lower net sales of approximately $ 395 million key program completions  lower customer funding levels increased competition fragmentation of existing large contracts into multiple smaller contracts awarded primarily basis price including cms.
 decreases partially offset by higher net sales of approximately $ 230 million for businesses acquired in 2014 approximately $ 110 million due to start-up of new programs growth in recently awarded programs.
 is&gs 2019 operating profit increased $ 36 million  or 8% ( 8 % ) , in 2015 compared to 2014.
increase attributable to improved program performance risk retirements offset by decreased operating profit from activities for net sales.
 adjustments not related to volume including net profit booking rate adjustments other matters approximately $ 70 million higher in 2015 compared to 2014.
 2014 2013 is&gs 2019 net sales decreased $ 461 million  or 8% ( 8 % )  in 2014 compared to 2013.
 decrease attributable to lower net sales of $ 475 million due to wind-down completion of certain programs reductions in direct warfighter support including jieddo $ 320 million due to decreased volume in technical services programs market pressures.
 decreases offset by higher net sales of $ 330 million due to start-up of new programs growth in recently awarded programs integration of recently acquired companies.
 is&gs 2019 operating profit decreased $ 26 million  or 5% ( 5 % )  in 2014 compared to 2013.
 decrease attributable to activities for sales partially offset by severance recoveries related to restructuring november 2013 of approximately $ 20 million in 2014.
 adjustments not related to volume including net profit booking rate adjustments comparable in 2014 and 2013.

| 2015           | 2014           | 2013
------------------- | -------------- | -------------- | --------------
net sales           | $ 5596         | $ 5654         | $ 6115
operating profit    | 508            | 472            | 498
operating margins   | 9.1% ( 9.1 % ) | 8.3% ( 8.3 % ) | 8.1% ( 8.1 % )
backlog at year-end | $ 4800         | $ 6000         | $ 6300


table of contents table discloses purchases of shares our common stock made by us or our behalf during fourth quarter of 2016.
 period total number of shares purchased average price paid per share total number of shares not purchased as part of publicly announced plans or programs total number of shares purchased as part of publicly announced plans or programs approximate dollar value of shares may yet be purchased under plans or programs.
 shares reported in column represent purchases settled in fourth quarter of 2016 relating to i our purchases of shares in open-market transactions to meet obligations under stock-based compensation plans  ) purchases of shares from employees and non-employee directors in connection with exercise of stock options vesting of restricted stock  other stock compensation transactions in accordance with terms stock compensation plans.
 on july 13 , 2015  board of directors authorized our purchase of up to $ 2. 5 billion of outstanding common stock.
 authorization has no expiration date.
 as of december 31 , 2016 approximate dollar value of shares yet be purchased under 2015 authorization is $ 40 million.
 on september 21 , 2016  board of directors authorized purchase of up to additional $ 2. 5 billion of outstanding common stock with no expiration date.
 as of december 31 , 2016 no purchases made under 2016 authorization.

period        | total numberof sharespurchased | averageprice paidper share | total number ofshares notpurchased as part ofpublicly announcedplans or programs ( a ) | total number ofshares purchased aspart of publiclyannounced plans orprograms | approximate dollarvalue of shares thatmay yet be purchasedunder the plans orprograms ( b )
------------- | ------------------------------ | -------------------------- | -------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------
october 2016  | 433272                         | $ 52.69                    | 50337                                                                                | 382935                                                                       | $ 2.7 billion
november 2016 | 667644                         | $ 62.25                    | 248349                                                                                | 419295                                                                       | $ 2.6 billion
december 2016 | 1559569                        | $ 66.09                    | 688                                                                                | 1558881                                                                      | $ 2.5 billion
total         | 2660485                        | $ 62.95                    | 299374                                                                                | 2361111                                                                      | $ 2.5 billion


marathon oil corporation notes consolidated financial statements expected long-term return on plan assets 2013 return on plan assets assumption for our u. s.
 funded plan determined based on asset rate-of-return modeling tool developed by third-party investment group utilizes underlying assumptions based on actual returns by asset category inflation our u. s.
 pension plan 2019s asset allocation.
 determine expected long-term return on plan assets assumption for international plans consider current level expected returns on risk-free investments ( primarily government bonds ) historical levels risk premiums with other applicable asset categories expectations for future returns of each asset class.
 expected return for each asset category weighted based on actual asset allocation to develop overall expected long-term return on plan assets assumption.
 assumed weighted average health care cost trend rates.
 n/a all retiree medical subsidies frozen as of january 1 , 2019.
 employer provided subsidies for post-65 retiree health care coverage frozen effective january 1, 2017 at january 1, 2016 established amount levels.
 company contributions funded to health reimbursement account on retiree 2019s behalf to subsidize retiree 2019s cost of obtaining health care benefits through private exchange ( 201cpost-65 retiree health benefits 201d ).
 1% ( 1 % ) change in health care cost trend rates not material impact on service and interest cost components postretirement benefit obligations.
 fourth quarter of 2018 terminated post-65 retiree health benefits effective as of december 31 , 2020.
 post-65 health benefits no longer provided after that date.
 pre-65 retiree medical coverage subsidy frozen as of january 1 , 2019 ability for retirees to opt in and out of this coverage pre-65 retiree dental and vision coverage eliminated.
retirees must enroll in with retirement for coverage , or lose eligibility.
 plan changes reduced retiree medical benefit obligation by approximately $ 99 million.
 plan investment policies and strategies 2013 investment policies for u. s.
 and international pension plan assets reflect funded status plans expectations regarding future ability to contributions.
 long-term investment goals are to : 1 ) manage assets in accordance with legal requirements ; 2 produce investment returns meet or exceed rates return in capital markets while maintaining risk parameters by plan's investment committees protecting assets from erosion of purchasing power ; 3 ) position portfolios with long-term risk/ return orientation.
 investment performance and risk measured monitored ongoing through quarterly investment meetings periodic asset and liability studies.
 u. s.
 plan 2013 plan 2019s current targeted asset allocation of 55% ( 55 % ) equity securities 45% ( 45 % ) other fixed income securities.
 over time  as plan 2019s funded ratio ( investment policy ) improves , to reduce volatility in returns match plan 2019s liabilities, allocation to equity securities will decrease amount allocated to fixed income securities will increase.
 plan's assets managed by third-party investment manager.
 international plan 2013 international plan's target asset allocation of 55% ( 55 % ) equity securities and 45% ( 45 % ) fixed income securities.
 plan assets invested in ten separate portfolios , mainly pooled fund vehicles  managed by several professional investment managers performance measured independently by third-party asset servicing consulting fair value measurements 2013 plan assets measured at fair value.
 description of valuation techniques employed for each major plan asset class at december 31 , 2018 and 2017.
 cash and cash equivalents 2013 cash cash equivalents are valued using market approach considered level 1.
equity securities 2013 investments in common stock valued using market approach at closing price in active market considered level 1.
 private equity investments include interests in limited partnerships valued based on sum of estimated fair values of investments held by each partnership determined using combination of market , income cost approaches plus working capital  adjusted for liabilities  currency translation estimated performance incentives.
 private equity investments considered level 3.
 investments in pooled funds valued using market approach  various funds consist of equity with underlying investments in u. s.
 and non-u. s.
 securities.
 pooled funds benchmarked against relative public index considered level 2.

| 2018 | 2017             | 2016
----------------------------------- | ---- | ---------------- | ----------------
initial health care trend rate      | n/a  | 8.00% ( 8.00 % ) | 8.25% ( 8.25 % )
ultimate trend rate                 | n/a  | 4.70% ( 4.70 % ) | 4.50% ( 4.50 % )
year ultimate trend rate is reached | n/a  | 2025             | 2025


company recognizes accrued interest penalties related to tax positions as component of income tax expense accounts for sales tax collected from customers remitted to taxing authorities on net basis.
 allowance for funds used during construction afudc is a non-cash credit to income with corresponding charge to utility plant represents cost of borrowed funds or return on equity funds devoted to plant under construction.
 regulated utility subsidiaries record afudc to extent permitted by pucs.
 portion of afudc attributable to borrowed funds is shown as reduction of interest , net in consolidated statements of operations.
 any portion of afudc attributable to equity funds included in other income ( expenses ) in consolidated statements of operations.
 afudc summarized in following table for years ended december 31:.
 environmental costs company 2019s water and wastewater operations subject to.
 federal  state  local foreign requirements to environmental protection company periodically becomes subject to environmental claims in normal course of business.
 environmental expenditures relate to current operations or provide future benefit are expensed or capitalized as appropriate.
 remediation costs relate to existing condition caused by past operations are accrued  on undiscounted basis when probable these costs will be incurred can be reasonably estimated.
 remediation costs accrued amounted to $ 1 and $ 2 as of december 31 , 2015 and 2014  respectively.
 accrual relates to conservation agreement by subsidiary of company with national oceanic and atmospheric administration ( ) requiring company to implement measures to protect steelhead trout habitat in carmel river watershed in state of california.
 company agreed to pay $ 1 annually from 2010 to 2016.
company 2019s inception-to-date costs related to noaa agreement recorded in regulatory assets in consolidated balance sheets as of december 31 , 2015 and 2014 expected to be fully recovered from customers in future rates.
 derivative financial instruments company uses derivative instruments for hedging exposures to fluctuations in interest rates.
 derivative contracts entered into for periods consistent with related underlying exposures not constitute positions independent of.
 company not enter derivative contracts for speculative purposes not use leveraged instruments.
 all derivatives recognized on balance sheet at fair value.
 on date derivative contract entered company may designate derivative as a hedge of fair value of recognized asset or liability ( fair-value hedge ) or hedge of forecasted transaction or of variability of cash flows to received or paid related to recognized asset liability ( cash-flow hedge ).
 changes in fair value of fair-value hedge  with gain or loss on underlying hedged item  recorded in current-period earnings.
 effective portion of gains and losses on cash-flow hedges recorded in other comprehensive income  until earnings affected by variability of cash flows.
 ineffective portion of designated hedges recognized in current-period earnings.
 cash flows from derivative contracts included in net cash by operating activities in consolidated statements of cash flows.

| 2015 | 2014 | 2013
----------------------------------------------------- | ---- | ---- | ----
allowance for other funds used during construction    | $ 13 | $ 9  | $ 13
allowance for borrowed funds used during construction | 8    | 6    | 6


wholly-owned subsidiary of company is registered life insurance company maintains separate account assets segregated funds for funding individual group pension contracts offsetting account liabilities.
 at decem - ber 31 , 2008 and 2007  level 3 account assets were approximately $ 4 and $ 12  respectively.
 changes in level 3 assets relate to purchases  sales gains/ losses ).
 net investment income net gains and losses attributable to account assets accrue directly to contract owner not reported as non-operating income ( expense ) on consolidated statements of income.
 level 3 assets  includes equity method investments consolidated investments of real estate funds private equity funds funds equity funds are valued based valuations from internal third party fund managers.
 fair valuations at underlying funds based on methods third-party independent appraisals discounted cash flow techniques.
 direct investments in private equity companies by funds of private equity funds are valued based on assessment of each under - lying investment  evaluation of significant third party financing changes in valuations of comparable peer companies business environment.
 see note 2 for detail on fair value policies by underlying funds.
 changes in level 3 assets measured at fair value recurring basis for year ended december 31 , 2008.
 total net ( losses ) for period included in earnings attributable to change in unrealized gains or ( losses ) relating to assets still held at reporting date $ ( 366 ) $ ( 17 ) realized and unrealized gains and losses for level 3 assets are reported in non-operating income ( expense ) on consolidated statements of income.
 non-controlling interest expense is recorded for consoli- dated investments to reflect portion of gains and losses not attributable to company.
company transfers assets in out of level 3 as significant inputs  including performance attributes used for fair value measurement become observable.
 6.
 variable interest entities in normal business company is manager of various sponsored investment vehicles including collateralized debt obligations and sponsored investment funds considered vies.
 company receives management fees or other incen- tive related fees for services and may own equity or debt securities or enter into derivatives with vehicles  each considered variable inter- ests.
 company engages in these variable interests to address client needs through launch of investment vehicles.
 vies primarily financed via capital contributed by equity and debt holders.
 company 2019s involvement in financing operations of vies is limited to equity interests , unfunded capital commitments for certain sponsored investment funds and capital support agreements for two enhanced cash funds.
 primary beneficiary of a vie is party that absorbs majority of entity 2019s expected losses receives major - ity of entity 2019s expected residual returns or both as result of holding variable interests.
 to determine company primary beneficiary of a vie  management must make significant estimates and assumptions of probable future cash flows assign probabilities to different cash flow scenarios.
 assumptions analyses include market prices of securities  market interest rates  poten- tial credit defaults on securities or default rates portfolio securities  gain realization  liquidity or marketability of certain securities  discount rates probability of certain other outcomes.
 vies in blackrock is primary beneficiary at december 31 , 2008  company was primary beneficiary of three vies  resulted in consolidation of three sponsored investment funds ( including two cash management funds and one private equity fund funds ).
 creditors of vies do not have recourse to credit of company.
2008 , company determined became primary beneficiary of two enhanced cash management funds concluding under various cash 177528_txt_59_96:layout 1 3/26/09 10:32 pm page 73

| investments    | other assets
------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | -------------- | ------------
december 31 2007                                                                                | $ 1240         | $ 2014
realized and unrealized gains / ( losses ) net                                                                                | -409 ( 409 )   | -16 ( 16 )
purchases sales other settlements and issuances net                                                                                | 11             | 2
net transfers in and/or out of level 3                                                                                | -29 ( 29 )     | 78
december 31 2008                                                                                | $ 813          | $ 64
total net ( losses ) for the period included in earnings attributable to the change in unrealized gains or ( losses ) relating to assets stillheld at the reporting date | $ -366 ( 366 ) | $ -17 ( 17 )


shareowner return performance graph graph and related information not deemed 201csoliciting material 201d or 201cfiled 201d with securities and exchange commission  nor information incorporated into future filing under securities act of 1933 or securities exchange act of 1934  each as amended except company specifically incorporates such information into filing.
 graph shows five-year comparison of cumulative total shareowners 2019 returns for class b common stock , s&p 500 index  dow jones transportation average.
 comparison of total cumulative return on investment  change in quarterly stock price plus reinvested dividends for quarterly periods assumes $ 100 invested on december 31, 2002 in s&p 500 index  dow jones transportation average  class b common stock of united parcel service .
 comparison of five year cumulative total return $ 40. 00 $ 60. 00 $ 80. 00 $ 100. 00 $ 120. 00 $ 140. 00 $ 160. 00 $ 180. 00 $ 200. 00 $ 220. 00 2002 20072006200520042003 s&p 500 ups dj transport.
 securities authorized for issuance under equity compensation plans table provides information as of december 31 , 2007 regarding compensation plans under our class a common stock authorized for issuance.
 plans do not authorize issuance of class b common stock.

| 12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07
-------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
united parcel service inc .      | $ 100.00 | $ 119.89 | $ 139.55 | $ 124.88 | $ 127.08 | $ 122.64
s&p 500 index                    | $ 100.00 | $ 128.68 | $ 142.68 | $ 149.69 | $ 173.33 | $ 182.85
dow jones transportation average | $ 100.00 | $ 131.84 | $ 168.39 | $ 188.00 | $ 206.46 | $ 209.40


table of contents notes to consolidated financial statements of american airlines , inc.
 asset.
 projected cash flows discounted at required market rate of return reflects relative risk of achieving cash flows and time value of money.
 cost approach , estimates value by determining current cost of replacing asset with another equivalent economic utility , used appropriate for certain assets for market and income approaches not be applied due to nature of asset.
 cost to replace given asset reflects estimated reproduction or replacement cost for asset  less allowance for loss in value due to depreciation.
 fair value of us airways 2019 dividend miles loyalty program liability determined based on weighted average equivalent ticket value of outstanding miles expected to be redeemed for future travel at december 9 , 2013.
 weighted average equivalent ticket value contemplates differing classes of service , domestic and international itineraries carrier providing award travel.
 pro-forma impact of merger american 2019s unaudited pro-forma results include effects of merger as if consummated as of january 1 , 2012.
 pro- forma results include depreciation and amortization associated with acquired tangible and intangible assets  lease and debt fair value adjustments  elimination of deferred gains or losses  adjustments relating to reflecting fair value of loyalty program liability impact of income changes on profit sharing expense  others.
 pro-forma results reflect impact of higher wage rates related to memorandums of understanding with us airways 2019 pilots effective upon closing merger elimination of american 2019s reorganization items , net and merger transition costs.
 pro-forma results not include anticipated synergies or other expected benefits of merger.
unaudited pro-forma financial information below not indicative of future results operations or results achieved had acquisition consummated as of january 1 , 2012.
 december 31 , ( in millions ).
 5.
 basis of presentation and summary of significant accounting policies basis presentation on december 30 , 2015 , us airways merged with into american  reflected in american 2019s consolidated financial statements transaction occurred on december 9, 2013 , when subsidiary of amr merged with into us airways group.
 full years of 2015 and 2014 and period from december 9, 2013 to december 31 , 2013 are comprised of consolidated financial data of american and us airways.
 for periods prior to december 9 , 2013  financial data reflects results of american only.
 for financial reporting transaction constituted transfer of assets between entities under common control accounted for similar to pooling of interests method of accounting.
 under method carrying amount of net assets recognized in balance sheets of each combining entity carried forward to balance sheet of combined entity no other assets or liabilities recognized.
 preparation of financial statements in accordance with accounting principles accepted in united states ( ) requires management to make certain estimates and assumptions affect reported amounts of assets and liabilities , revenues and expenses  disclosure of contingent assets and liabilities at date of financial statements.
 actual results could differ from estimates.
 significant areas of judgment relate to passenger revenue recognition , impairment of goodwill , impairment of long-lived and

| december 31 2013 ( in millions )
---------- | --------------------------------
revenue    | $ 40782
net income | 2707


1 our long-term debt consists of secured and unsecured debt includes principal and interest.
 interest payments for variable rate debt calculated using interest rates as of december 31 , 2016.
 repayment of our $ 250. 0 million variable rate term note  contractual maturity date in january 2019 , reflected as a 2020 obligation in table above based on ability to exercise one-year extension at our discretion.
 2 ) unsecured line of credit has contractual maturity date in january 2019 reflected as a 2020 obligation in table based on ability to exercise one-year extension exercise at our discretion.
 interest payments for unsecured line of credit calculated using most recent stated interest rate in effect. 3 ) share of unconsolidated joint venture debt includes both principal and interest.
 interest expense for variable rate debt calculated using interest rate at december 31 , 2016.
 ( 4 ) represents estimated remaining costs on completion of owned development projects and third-party construction projects.
 we provide property and asset management , leasing , construction other tenant-related services to unconsolidated companies in we have equity interests.
 for years ended december 31 , 2016 , 2015 and 2014 earned management fees of $ 4. 5 million , $ 6. 8 million $ 8. 5 million  leasing fees of $ 2. 4 million , $ 3. 0 million $ 3. 4 million construction and development fees of $ 8. 0 million , $ 6. 1 million and $ 5. 8 million  from these companies prior to elimination of ownership percentage.
 recorded these fees based on contractual terms approximate market rates for these services eliminated ownership percentages of these fees in consolidated financial statements.
 partnership guaranteed repayment of $ 32.9 million of economic development bonds issued by various municipalities in connection with commercial developments.
 we required to make payments under our guarantees to extent incremental taxes from specified developments not sufficient to pay bond ff debt service.
 management not believe probable we required to make significant payments in satisfaction of these guarantees.
 partnership guaranteed repayment of unsecured loan of one of our unconsolidated subsidiaries.
 at december 31 , 2016  maximum guarantee exposure for this loan was approximately $ 52. 1 million.
 we lease certain land positions with terms extending toww march 2114 total future payment obligation of $ 311. 1 million.
 payments on these ground leases , classified as operating leases  not material in any individual year.
 in addition to ground leases we party to other operating leases conducting business including leases of office space from third parties with total future payment obligation of ff $ 43. 4 million at december 31 , 2016.
 no future payments on these leases material in any individual year.
 subject to legal proceedings and claims in ordinary course of business.
 in opinion of management ultimate liability with these actions not expected to materially affect our consolidated financial statements or results of operations.
 own certain parcels of land subject to special property tax assessments levied by quasi municipalww entities.
 to extent such special assessments fixed and determinable discounted value of fulltt

contractual obligations                            | payments due by period ( in thousands ) total | payments due by period ( in thousands ) 2017 | payments due by period ( in thousands ) 2018 | payments due by period ( in thousands ) 2019 | payments due by period ( in thousands ) 2020 | payments due by period ( in thousands ) 2021 | payments due by period ( in thousands ) thereafter
-------------------------------------------------- | --------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | -------------------------------------------- | --------------------------------------------------
long-term debt ( 1 )                               | $ 3508789                                     | $ 203244                                     | $ 409257                                     | $ 366456                                     | $ 461309                                     | $ 329339                                     | $ 1739184
line of credit ( 2 )                               | 56127                                         | 2650                                         | 2650                                         | 2650                                         | 48177                                        | 2014                                         | 2014
share of unconsolidated joint ventures' debt ( 3 ) | 91235                                         | 2444                                         | 28466                                        | 5737                                         | 11598                                        | 1236                                         | 41754
ground leases                                      | 311120                                        | 10745                                        | 5721                                         | 5758                                         | 5793                                         | 5822                                         | 277281
development and construction backlog costs ( 4 )   | 344700                                        | 331553                                       | 13147                                        | 2014                                         | 2014                                         | 2014                                         | 2014
other                                              | 43357                                         | 7502                                         | 7342                                         | 5801                                         | 4326                                         | 3906                                         | 14480
total contractual obligations                      | $ 4355328                                     | $ 558138                                     | $ 466583                                     | $ 386402                                     | $ 531203                                     | $ 340303                                     | $ 2072699


25feb201400255845 performance graph graph compares performance our common stock with s&p 500 index s&p 500 healthcare equipment index.
 cumulative total return assumes initial investment $ 100 december 31 , 2008 reinvestment of dividends.
 comparison five year cumulative total return 2008 2009 2010 2011 20132012 edwards lifesciences s&p 500 s&p 500 healthcare equipment december 31.

total cumulative return            | 2009     | 2010     | 2011     | 2012     | 2013
---------------------------------- | -------- | -------- | -------- | -------- | --------
edwards lifesciences               | $ 158.05 | $ 294.23 | $ 257.32 | $ 328.19 | $ 239.34
s&p 500                            | 126.46   | 145.51   | 148.59   | 172.37   | 228.19
s&p 500 healthcare equipment index | 120.83   | 117.02   | 123.37   | 145.84   | 186.00


2007 annual report 39 corporate snap-on 2019s general corporate expenses totaled $ 53. 8 million in 2006  up from $ 46. 4 million in 2005 primarily due to $ 15. 2 million increased stock-based and performance-based incentive compensation  including $ 6. 3 million from january 1 , 2006 , adoption of sfas no.
 123 ( r ).
 increased expenses in 2006 included $ 4. 2 million higher insurance other costs.
 expense increases partially offset by $ 9. 5 million benefits from rci initiatives.
 see note 13 to consolidated financial statements for information on company 2019s adoption of sfas no.
 123 ( r ).
 financial condition snap-on 2019s growth funded by combination cash operating activities debt financing.
 snap-on believes cash from operations with sources borrowings sufficient to fund anticipated requirements for working capital  capital expenditures restructuring activities acquisitions common stock repurchases dividend payments.
 due to snap-on 2019s credit rating external funds available at reasonable cost.
 of close of business on february 15 , 2008  snap-on 2019s long-term debt and commercial paper rated a3 and p-2 by moody 2019s investors service a- and a-2 by standard & poor 2019s.
 snap-on believes strength of balance sheet cash flows from operating activities affords company financial flexibility to respond to internal growth opportunities acquisitions.
 discussion focuses on information in consolidated balance sheets.
 snap-on focused on improving asset utilization by making effective use of investment in certain working capital items.
 company assesses management 2019s operating performance effectiveness relative to those components of working capital  particularly accounts receivable inventories directly impacted by operational decisions.
december 29 , 2007 working capital ( current assets less liabilities ) of $ 548. 2 million up $ 117. 0 million from $ 431. 2 million december 30 , 2006.
 increase year-over-year working capital reflects higher levels 201ccash and cash equivalents of $ 29. 6 million  lower 201cnotes payable current maturities of long-term debt $ 27. 7 million  $ 27. 7 million increased 201caccounts receivable 2013 net of allowances. represents company 2019s working capital position as of december 29, 2007 and december 30 , 2006.
 amounts in millions ) 2007 2006.
 accounts receivable end of 2007 was $ 586. 9 million  up $ 27. 7 million from year-end 2006 levels.
 year-over- year increase in accounts receivable reflects impact higher sales fourth quarter of 2007 $ 25. 1 million of currency translation.
 increase accounts receivable partially offset by lower levels receivables improvement in days sales outstanding from 76 days year-end 2006 to 73 days year-end 2007.

( amounts in millions ) ad                             | 2007             | 2006
------------------------------------------------------ | ---------------- | ----------------
cash and cash equivalents                              | $ 93.0           | $ 63.4
accounts receivable 2013 net of allowances             | 586.9            | 559.2
inventories                                            | 322.4            | 323.0
other current assets                                   | 185.1            | 167.6
total current assets                                   | 1187.4           | 1113.2
accounts payable                                       | -171.6 ( 171.6 ) | -178.8 ( 178.8 )
notes payable and current maturities of long-term debt | -15.9 ( 15.9 )   | -43.6 ( 43.6 )
other current liabilities                              | -451.7 ( 451.7 ) | -459.6 ( 459.6 )
total current liabilities                              | -639.2 ( 639.2 ) | -682.0 ( 682.0 )
total working capital                                  | $ 548.2          | $ 431.2


dish network corporation notes to consolidated financial statements - continued capital lease obligations anik f3.
 f3 , fss satellite  launched commenced commercial operation april 2007.
 satellite accounted for as capital lease depreciated over term satellite service agreement.
 leased 100% ( 100 % ) ku-band capacity on anik f3 for 15 years.
 ciel ii.
 ciel , canadian dbs satellite  launched december 2008 commenced commercial operation february 2009.
 satellite accounted for as capital lease depreciated over term satellite service agreement.
 leased 100% ( 100 % ) capacity on ciel ii for initial 10 year term.
 as of december 31 , 2014 and 2013  had $ 500 million capitalized for estimated fair value of satellites acquired under capital leases included in 201cproperty and equipment , net  201d with related accumulated depreciation of $ 279 million and $ 236 million , respectively.
 consolidated statements of operations comprehensive income loss ) recognized $ 43 million, $ 43 million $ 43 million in depreciation expense on satellites acquired under capital lease agreements during years ended december 31 , 2014 , 2013 2012 .
 future minimum lease payments under capital lease obligations present value of net minimum lease payments as of december 31, 2014 are as follows ( in thousands ) : for years ended december 31.
 summary of future maturities of outstanding long-term debt as of december 31 , 2014 included in commitments table in note 16.
 12.
 income taxes accounting for uncertainty in income taxes income tax policy to record estimated future tax effects of temporary differences between tax bases of assets liabilities amounts reported on consolidated balance sheets probable operating loss , tax credit other carryforwards.
deferred tax assets offset by valuation allowances when believe more likely not net deferred tax assets not be realized.
 we periodically evaluate need for valuation allowance.
 determining necessary valuation allowances requires assessments about historical financial information timing of future events including probability of expected future taxable income available tax planning opportunities.
 we file consolidated tax returns in u. s.
 income taxes of domestic and foreign subsidiaries not included in u. s.
 tax group presented in consolidated financial statements based separate return basis for each tax paying entity.

2015                                                                                | $ 77089
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------
2016                                                                                | 76809
2017                                                                                | 76007
2018                                                                                | 75982
2019                                                                                | 50331
thereafter                                                                                | 112000
total minimum lease payments                                                                                | 468218
less : amount representing lease of the orbital location and estimated executory costs ( primarily insurance and maintenance ) including profit thereon included in total minimum lease payments | -220883 ( 220883 )
net minimum lease payments                                                                                | 247335
less : amount representing interest                                                                                | -52421 ( 52421 )
present value of net minimum lease payments                                                                                | 194914
less : current portion                                                                                | -28378 ( 28378 )
long-term portion of capital lease obligations                                                                                | $ 166536


corporation of america notes consolidated financial statements continued december 31 , 2006.
 stock-based compensation continued same period $ 1988000 lower than if continued account share-based compensation under apb no.
 25.
 basic and diluted earnings per share for year ended december 31 , 2006 $ 0. 02 lower if company continued account share-based compensation under apb no.
 25.
 prior to adoption of sfas no.
 123 ( r )  company presented tax benefits of deductions from share-based payment arrangements as operating cash flows in statements cash flows.
 sfas no.
 123 ( r ) requires cash flows from tax benefits tax deductions excess of compensation cost recognized for share awards excess tax benefits classified as financing cash flows.
 excess tax benefit of $ 2885000 classified as financing cash inflow for year ended december 31 , 2006 would classified operating cash inflow if not adopted sfas no.
 123 ( r ).
 adopting sfas no 123 ( r ) unearned compensation recorded in stockholders 2019 equity reclassified against additional paid in capital on january 1 , 2006.
 stock-based compensation expense not recognized as of december 31, 2005 expense related to post 2005 grants of stock options and amortization of restricted stock recorded directly to additional paid in capital.
 compensation expense for stock options and restricted stock recognized in statements of income for year ended december 31 , 2006 , 2005 2004 as follows year ended december 31 , thousands ) 2006 2005 2004.

( in thousands )                     | year ended december 31 , 2006 | year ended december 31 , 2005 | year ended december 31 , 2004
------------------------------------ | ----------------------------- | ----------------------------- | -----------------------------
stock options                        | $ -3273 ( 3273 )              | $ 2014                        | $ 2014
restricted stock                     | -2789 ( 2789 )                | -1677 ( 1677 )                | -663 ( 663 )
impact on income before income taxes | -6062 ( 6062 )                | -1677 ( 1677 )                | -663 ( 663 )
income tax benefit                   | 2382                          | 661                           | 260
impact on net income                 | $ -3680 ( 3680 )              | $ -1016 ( 1016 )              | $ -403 ( 403 )


reporting environmental results  company classifies gross exposure into direct , assumed reinsurance  london market.
 table displays gross environmental reserves and other statistics by category as of december 31 , 2011.
 summary of environmental reserves as of december 31 , 2011.
 one year gross paid amount for total environmental claims is $ 58 , one year gross survival ratio of 6. 4.
 [2] three year average gross paid amount for total environmental claims is $ 58 , three year gross survival ratio of 6. 4.
 during second quarters of 2011 , 2010 2009  company completed annual ground-up asbestos reserve evaluations.
 of evaluations company reviewed open direct domestic insurance accounts exposed to asbestos liability assumed reinsurance accounts and london market exposures for direct insurance assumed reinsurance.
 based on evaluation company strengthened net asbestos reserves by $ 290 in second quarter 2011.
 during 2011  for certain direct policyholders company experienced increases in claim frequency , severity and expense driven by mesothelioma claims  particularly against certain smaller  peripheral insureds.
 company also experienced unfavorable development on assumed reinsurance accounts driven by same factors experienced by direct policyholders.
 during 2010 and 2009  for certain direct policyholders company experienced increases in claim severity and expense.
 increases in severity expense driven by litigation in certain jurisdictions development on primarily peripheral accounts.
 company experienced unfavorable development on assumed reinsurance accounts driven by same factors experienced by direct policyholders.
 net effect of these changes in 2010 and 2009 resulted in $ 169 and $ 138 increases in net asbestos reserves.
 company expects to continue to perform evaluation of asbestos liabilities annually.
company divides gross asbestos exposures into direct , assumed reinsurance london market.
 company divides direct asbestos exposures into categories : major asbestos defendants ( 201ctop 70 201d accounts in tillinghast 2019s published tiers 1 and 2 wellington accounts )  subdivided as : structured settlements, wellington , other major asbestos defendants , accounts with future expected exposures greater than $ 2. 5 , accounts with future exposures less than $ 2. 5  unallocated.
 2022 structured settlements are accounts where company agreement with insured amount and timing of claim payments to insured.
 2022 wellington subcategory includes insureds entered into 201cwellington agreement 201d dated june 19 , 1985.
 wellington agreement provided terms conditions for signatory asbestos producers access coverage from signatory insurers.
 2022 other major asbestos defendants subcategory represents insureds included in tiers 1 and 2 defined by tillinghast not wellington signatories not entered into structured settlements with hartford.
 tier 1 and 2 classifications to capture insureds for expected to significant exposure to asbestos claims.
 2022 accounts with future expected exposures greater or less than $ 2. 5 include accounts not major asbestos defendants.
 2022 unallocated category includes estimate of reserves necessary for asbestos claims related to direct insureds not previously tendered asbestos claims to company exposures related to liability claims may not be subject to aggregate limit under applicable policies.
 account may move between categories from one evaluation to next.
 account with future expected exposure of greater than $ 2. 5 in one evaluation may be reevaluated due to changing conditions recategorized as less than $ 2. 5 in subsequent evaluation or vice versa.

| total reserves
------------------- | --------------
gross [1] [2]       |
direct              | $ 271
assumed reinsurance | 39
london market       | 57
total               | 367
ceded               | -47 ( 47 )
net                 | $ 320


net cash flows by operating activities of $ 704. 4 million for 2016 increased $ 154. 7 million from 2015 due to improved operating performance lower supplier payments 2016 compared to 2015 partially offset by impact excess tax benefits from stock plans due to increased stock price increase in accounts receivable due to increased sales  primarily in united states.
 net cash flows operating activities of $ 549. 7 million for 2015 decreased $ 472. 6 million from 2014 due to $ 750. 0 million upfront payment from medtronic under litigation settlement agreement  higher bonus payout in 2015 associated with 2014 performance.
 decreases partially offset by income tax payments of $ 224. 5 million in 2014 related to medtronic settlement  improved operating performance 2015 $ 50. 0 million charitable contribution in 2014 to edwards lifesciences foundation.
 net cash used in investing activities of $ 211. 7 million in 2016 consisted of capital expenditures of $ 176. 1 million $ 41. 3 million for acquisition of intangible assets.
 net cash in investing activities of $ 316. 1 million in 2015 of $ 320. 1 million net payment associated with acquisition of cardiaq  capital expenditures of $ 102. 7 million  partially offset by net proceeds from investments of $ 119. 6 million.
 net cash used in investing activities of $ 633. 0 million in 2014 consisted of net purchases of investments of $ 527. 4 million capital expenditures of $ 82. 9 million.
 net cash in financing activities of $ 268. 5 million in 2016 consisted primarily of purchases of treasury stock of $ 662. 3 million  partially offset by net proceeds from issuance of debt of $ 222. 1 million  proceeds from stock plans of $ 103.3 million  3 ) excess tax benefit from stock plans of $ 64. 3 million.
 net cash used in financing activities $ 158. 6 million in 2015 primarily of purchases of treasury stock $ 280. 1 million  partially offset by proceeds from stock plans $ 87. 2 million  2 excess tax benefit from stock plans of $ 41. 3 million.
 net cash used in financing activities $ 153. 0 million in 2014 primarily purchases of treasury stock $ 300. 9 million  partially offset by 1 proceeds from stock plans $ 113. 3 million  2 excess tax benefit from stock plans $ 49. 4 million ( including realization of previously unrealized excess tax benefits ).
 summary of contractual obligations and commercial commitments as of december 31, 2016 ( in millions ) :.
 amount included in 2018 2018less than 1 year 2019 reflects anticipated contributions to various pension plans.
 anticipated contributions beyond one year not determinable.
 total accrued benefit liability for pension plans as of december 31, 2016 was $ 50. 1 million.
 amount impacted

contractual obligations                        | payments due by period total | payments due by period less than1 year | payments due by period 1-3years | payments due by period 4-5years | payments due by period after 5years
---------------------------------------------- | ---------------------------- | -------------------------------------- | ------------------------------- | ------------------------------- | -----------------------------------
debt                                           | $ 825.0                      | $ 2014                                 | $ 825.0                         | $ 2014                          | $ 2014
operating leases                               | 72.6                         | 22.3                                   | 24.9                            | 8.8                             | 16.6
interest on debt                               | 30.8                         | 16.4                                   | 14.4                            | 2014                            | 2014
pension obligations ( a )                      | 6.1                          | 6.1                                    | 2014                            | 2014                            | 2014
capital commitment obligations ( b )           | 0.6                          | 0.3                                    | 0.3                             | 2014                            | 2014
purchase and other commitments                 | 16.4                         | 13.7                                   | 2.7                             | 2014                            | 2014
total contractual cash obligations ( c ) ( d ) | $ 951.5                      | $ 58.8                                 | $ 867.3                         | $ 8.8                           | $ 16.6


indemnification and repurchase claims typically settled on individual loan basis through make-whole payments or loan repurchases ;  on occasion we may negotiate pooled settlements with investors.
 pooled settlements we typically do not repurchase loans consummation of transactions generally results in no longer having indemnification and repurchase exposure with investor in transaction.
 for first and second-lien mortgage balances of unresolved and settled claims in tables below significant amount of these claims associated with sold loans originated through correspondent lender and broker origination channels.
 in certain instances when indemnification or repurchase claims settled for these sold loans, we have recourse back to correspondent lenders, brokers other third-parties (. contract underwriting companies  closing agents appraisers. ).
 depending on underlying reason for investor claim we determine our ability to pursue recourse with these parties and file claims with them accordingly.
 historical recourse recovery rate insignificant as efforts impacted by inability of parties to reimburse us for recourse obligations (. capital availability remain in business ) or factors limit our ability to pursue recourse from parties (. contractual loss caps statutes of limitations ).
 origination and sale of residential mortgages is ongoing business activity management continually assesses need to recognize indemnification and repurchase liabilities to associated investor sale agreements.
 we establish indemnification and repurchase liabilities for estimated losses on sold first and second-lien mortgages for which indemnification expected to be provided or for loans expected to be repurchased.
first and second- lien mortgage sold portfolio established indemnification and repurchase liability to investor sale agreements based on claims made demand patterns observed expected future estimate of future claims loan by loan basis.
 estimate mortgage repurchase liability from breaches of representations warranties consider factors : i ) borrower performance in historically sold portfolio ( actual and estimated future defaults ) ii ) level of outstanding unresolved repurchase claims  iii ) estimated probable future repurchase claims  considering information about file requests  delinquent liquidated loans resolved unresolved mortgage insurance rescission notices historical experience with claim rescissions iv ) potential ability to cure defects identified in repurchase claims ( 201crescission rate 201d ) v ) estimated severity of loss upon repurchase of loan or collateral , make-whole settlement  or indemnification.
 see note 24 commitments and guarantees in notes to consolidated financial statements in item 8 report for additional information.
 following tables present unpaid principal balance of repurchase claims by vintage total unresolved repurchase claims for past five quarters.
 table 28 : analysis of quarterly residential mortgage repurchase claims by vintage dollars in millions december 31 september 30 june 30 march 31 december 31.
 pnc financial services group , inc.
 2013 form 10-k 79

dollars in millions          | december 31 2012 | september 30 2012 | june 30 2012 | march 31 2012 | december 312011
---------------------------- | ---------------- | ----------------- | ------------ | ------------- | ---------------
2004 & prior                 | $ 11             | $ 15              | $ 31         | $ 10          | $ 11
2005                         | 8                | 10                | 19           | 12            | 13
2006                         | 23               | 30                | 56           | 41            | 28
2007                         | 45               | 137               | 182          | 100           | 90
2008                         | 7                | 23                | 49           | 17            | 18
2008 & prior                 | 94               | 215               | 337          | 180           | 160
2009 2013 2012               | 38               | 52                | 42           | 33            | 29
total                        | $ 132            | $ 267             | $ 379        | $ 213         | $ 189
fnma fhlmc and gnma % (  % ) | 94% ( 94 % )     | 87% ( 87 % )      | 86% ( 86 % ) | 88% ( 88 % )  | 91% ( 91 % )


mastercard incorporated notes to consolidated financial statements 2014continued municipal bond portfolio comprised of tax exempt bonds diversified across states and sectors.
 portfolio has average credit quality of double-a.
 short-term bond funds invest in fixed income securities including corporate bonds  mortgage-backed securities asset-backed securities.
 company holds investments in ars.
 interest on securities exempt from.
 federal income tax interest rate resets every 35 days.
 securities fully collateralized by student loans with guarantees ranging from approximately 95% ( 95 % ) to 98% ( 98 % ) of principal and interest by.
 government via department of education.
 beginning february 11, 2008  auction mechanism provided liquidity to ars investments began to fail.
 since mid-february 2008 all investment positions in company 2019s ars investment portfolio experienced failed auctions.
 securities for which auctions failed continued to pay interest in accordance with contractual terms will continue to accrue interest be auctioned at each reset date until auction succeeds issuer redeems securities or mature.
 during 2008  ars reclassified as level 3 from level 2.
 as of december 31 , 2010  ars market remained illiquid issuer call and redemption activity in ars student loan sector occurred periodically since auctions began fail.
 during 2010 and 2009  company did not sell any ars in auction market but were calls at par.
 table below includes roll-forward of company 2019s ars investments from january 1 , 2009 to december 31 , 2010.
 significant unobservable inputs ( level 3 ) ( in millions ).
 company evaluated estimated impairment of ars portfolio to determine if other-than- temporary.
company considered factors including not following : ( 1 ) reasons for decline in value ( changes in interest rates , credit event  or market fluctuations ) ; ( 2 ) assessments to whether it more likely not it will hold and not be required to sell investments for sufficient period time to allow for recovery of cost basis ; ( 3 ) whether decline is substantial ; ( 4 ) historical and anticipated duration of events causing decline in value.
 evaluation for other-than-temporary impairments is quantitative and qualitative process  subject to risks and uncertainties.
 risks uncertainties include changes in credit quality , market liquidity , timing amounts of issuer calls and interest rates.
 as of december 31 , 2010 , company believed unrealized losses on ars were not related to credit quality but due to lack of liquidity in market.
 company believes it is more

| significant unobservable inputs ( level 3 ) ( in millions )
------------------------------------------------- | -----------------------------------------------------------
fair value december 31 2008                       | $ 192
calls at par                                      | -28 ( 28 )
recovery of unrealized losses due to issuer calls | 5
increase in fair value                            | 11
fair value december 31 2009                       | 180
calls at par                                      | -94 ( 94 )
recovery of unrealized losses due to issuer calls | 13
increase in fair value                            | 7
fair value december 31 2010                       | $ 106


consolidated financial statements minority partner approves annual budget receives monthly reporting meets quarterly review results joint venture approves joint venture tax return before filing approves leases more than nominal space relative total rentable space property not consolidate joint venture substantive participation rights.
 joint venture agreements contain pro- tective rights requirement partner approval to sell finance refinance property payment capital expenditures operating expenditures outside approved budget operating plan.
 table general information joint venture as of december 31, 2009 thousands ) : property partner ownership interest economic interest square feet acquired acquisition price ) 1221 avenue of americas ( 2 ) rgii 45. 00% ( 45. 00 % ) 45. 00% ( 45. 00 % ) 2550 12/03 $ 1000000 1515 broadway ( 3 ) sitq 55. 00% ( 55. 00 % ) 68. 45% ( 68. 45 % ) 1750 05/02 $ 483500.
 meadows ( 10 ) onyx 50. 00% ( 50. 00 % ) 50. 00% ( 50. 00 % ) 582 09/07 $ 111500 388 and 390 greenwich street ( 11 ) sitq 50. 60% ( 50. 60 % ) 50. 60% ( 50. 60 % ) 2600 12/07 $ 1575000 27 201329 west 34th street ( 12 ) sutton 50. 00% ( 50. 00 % ) 50. 00% ( 50. 00 % ) 41 01/06 $ 30000 1551 20131555 broadway ( 13 ) sutton 10. 00% ( 10. 00 % ) 10. 00% ( 10. 00 % ) 26 07/05 $ 80100 717 fifth avenue ( 14 ) sutton/nakash 32. 75% ( 32. 75 % ) 32. 75% ( 32. 75 % ) 120 09/06 $ 251900 ( acquisition price represents actual implied purchase price joint venture.
2 acquired interest from mcgraw-hill companies , or mhc.
 mhc is a tenant at property accounted for approximately 14. 7% ( 14. 7 % ) of property 2019s annualized rent at december 31 , 2009.
 do not manage this joint venture.
 3 under tax protection agreement to protect limited partners of partnership transferred 1515 broadway to joint venture, joint venture agreed not to adversely affect limited partners 2019 tax positions before december 2011.
 one tenant , leases primarily ends in 2015  represents approximately 77. 4% ( 77. 4 % ) of this joint venture 2019s annualized rent at december 31, 2009.
 4 ) effective november 2006 deconsolidated this investment.
 result of recapitalization of property  no longer primary beneficiary.
 both partners had same amount equity at risk neither partner controlled joint venture.
 5 invested approximately $ 109. 5 million in this asset through origination of loan secured by up to 47% ( 47 % ) of interests in property 2019s ownership  with option to convert loan to equity interest.
 certain existing members have right to re-acquire approximately 4% ( 4 % ) of property 2019s equity.
 these interests re-acquired in december 2008 reduced our interest to 42. 95% ( 42. 95 % ) 6 effective april 2007 , deconsolidated this investment.
 result of recapitalization of property  no longer primary beneficiary.
 both partners had same amount of equity at risk neither partner controlled joint venture.
 7 ability to syndicate interest down to 14. 79% ( 14. 79 % ).
 8 ), along with gramercy  as tenants-in-common acquired fee interest in 2 herald square.
 fee interest subject to long-term operating lease.
( 9 ) we , along with gramercy , as tenants-in-common  acquired fee and leasehold interest in 885 third avenue.
 fee and leasehold interests subject to long-term operating lease.
 ( 10 ) we , with onyx acquired remaining 50% ( 50 % ) interest pro-rata basis in september 2009.
 ( 11 ) property subject to 13-year triple-net lease arrangement with single tenant.
 ( 12 ) effective may 2008  we deconsolidated this investment.
 result of recapitalization property we no longer primary beneficiary.
 both partners had same equity at risk neither partner controlled joint venture.
 ( 13 ) effective august 2008 we deconsolidated this investment.
 result of sale of 80% ( 80 % ) of our interest joint venture no longer a vie.
 ( 14 ) effective september 2008  we deconsolidated this investment.
 result of recapitalization property we no longer primary beneficiary.

property                            | partner                    | ownership interest | economic interest  | square feet | acquired | acquisition price ( 1 )
----------------------------------- | -------------------------- | ------------------ | ------------------ | ----------- | -------- | -----------------------
1221 avenue of the americas ( 2 )   | rgii                       | 45.00% ( 45.00 % ) | 45.00% ( 45.00 % ) | 2550        | 12/03    | $ 1000000
1515 broadway ( 3 )                 | sitq                       | 55.00% ( 55.00 % ) | 68.45% ( 68.45 % ) | 1750        | 05/02    | $ 483500
100 park avenue                     | prudential                 | 49.90% ( 49.90 % ) | 49.90% ( 49.90 % ) | 834         | 02/00    | $ 95800
379 west broadway                   | sutton                     | 45.00% ( 45.00 % ) | 45.00% ( 45.00 % ) | 62          | 12/05    | $ 19750
21 west 34thstreet ( 4 )            | sutton                     | 50.00% ( 50.00 % ) | 50.00% ( 50.00 % ) | 30          | 07/05    | $ 22400
800 third avenue ( 5 )              | private investors          | 42.95% ( 42.95 % ) | 42.95% ( 42.95 % ) | 526         | 12/06    | $ 285000
521 fifth avenue                    | cif                        | 50.10% ( 50.10 % ) | 50.10% ( 50.10 % ) | 460         | 12/06    | $ 240000
one court square                    | jp morgan                  | 30.00% ( 30.00 % ) | 30.00% ( 30.00 % ) | 1402        | 01/07    | $ 533500
1604-1610 broadway ( 6 )            | onyx/sutton                | 45.00% ( 45.00 % ) | 63.00% ( 63.00 % ) | 30          | 11/05    | $ 4400
1745 broadway ( 7 )                 | witkoff/sitq/lehman bros . | 32.26% ( 32.26 % ) | 32.26% ( 32.26 % ) | 674         | 04/07    | $ 520000
1 and 2 jericho plaza               | onyx/credit suisse         | 20.26% ( 20.26 % ) | 20.26% ( 20.26 % ) | 640         | 04/07    | $ 210000
2 herald square ( 8 )               | gramercy                   | 55.00% ( 55.00 % ) | 55.00% ( 55.00 % ) | 354         | 04/07    | $ 225000
885 third avenue ( 9 )              | gramercy                   | 55.00% ( 55.00 % ) | 55.00% ( 55.00 % ) | 607         | 07/07    | $ 317000
16 court street                     | cif                        | 35.00% ( 35.00 % ) | 35.00% ( 35.00 % ) | 318         | 07/07    | $ 107500
the meadows ( 10 )                  | onyx                       | 50.00% ( 50.00 % ) | 50.00% ( 50.00 % ) | 582         | 09/07    | $ 111500
388 and 390 greenwich street ( 11 ) | sitq                       | 50.60% ( 50.60 % ) | 50.60% ( 50.60 % ) | 2600        | 12/07    | $ 1575000
27-29 west 34thstreet ( 12 )        | sutton                     | 50.00% ( 50.00 % ) | 50.00% ( 50.00 % ) | 41          | 01/06    | $ 30000
1551-1555 broadway ( 13 )           | sutton                     | 10.00% ( 10.00 % ) | 10.00% ( 10.00 % ) | 26          | 07/05    | $ 80100
717 fifth avenue ( 14 )             | sutton/nakash              | 32.75% ( 32.75 % ) | 32.75% ( 32.75 % ) | 120         | 09/06    | $ 251900


notes to consolidated financial statements firm reinvests eligible earnings of foreign subsidiaries does not accrue.
 income taxes if earnings repatriated.
 as of december 2012 and 2011  policy resulted in unrecognized net deferred tax liability of $ 3. 75 billion and $ 3. 32 billion  attributable to reinvested earnings of $ 21. 69 billion and $ 20. 63 billion .
 unrecognized tax benefits firm recognizes tax positions in financial statements only when more likely not position be sustained on examination by relevant taxing authority based on technical merits position.
 position meets standard is measured at largest amount of benefit more likely not be realized on settlement.
 liability established for differences between positions taken in tax return and amounts recognized in financial statements.
 as of december 2012 and 2011 accrued liability for interest expense related to income tax matters and income tax penalties was $ 374 million and $ 233 million  respectively.
 firm recognized $ 95 million , $ 21 million and $ 28 million of interest and income tax penalties for years ended december 2012 , december 2011 december 2010 .
 possible unrecognized tax benefits could change significantly during twelve months subsequent to december 2012 due to potential audit settlements not possible to estimate potential change.
 table below presents changes in liability for unrecognized tax benefits.
 liability included in 201cother liabilities and accrued expenses. 201d see note 17 for further information.
 related deferred income tax asset 1 685 569 972 net unrecognized tax benefit 2 $ 1552 $ 1318 $ 1109 1.
 included in 201cother assets. 201d see note 12.
.
 if recognized net tax benefit would reduce firm 2019s effective income tax rate.
 194 goldman sachs 2012 annual

in millions                                                  | as of december 2012 | as of december 2011 | as of december 2010
------------------------------------------------------------ | ------------------- | ------------------- | -------------------
balance beginning of year                                    | $ 1887              | $ 2081              | $ 1925
increases based on tax positions related to the current year | 190                 | 171                 | 171
increases based on tax positions related to prior years      | 336                 | 278                 | 162
decreases related to tax positions of prior years            | -109 ( 109 )        | -41 ( 41 )          | -104 ( 104 )
decreases related to settlements                             | -35 ( 35 )          | -638 ( 638 )        | -128 ( 128 )
acquisitions/ ( dispositions )                               | -47 ( 47 )          | 47                  | 56
exchange rate fluctuations                                   | 15                  | -11 ( 11 )          | -1 ( 1 )
balance end of year                                          | $ 2237              | $ 1887              | $ 2081
related deferred income tax asset1                           | 685                 | 569                 | 972
net unrecognized tax benefit2                                | $ 1552              | $ 1318              | $ 1109


62 general mills amounts recorded in accumulated comprehensive loss unrealized losses from interest rate cash flow hedges recorded in aoci as of may 27 , 2012  totaled $ 73. 6 million after tax.
 deferred losses primarily related to interest rate swaps entered in future borrowings financ- ing requirements being reclassified into net interest over hedged forecasted transac- tions.
 unrealized losses from foreign currency cash flow hedges recorded in aoci as of may 27, 2012  were $ 1. 7 million after-tax.
 net amount of pre-tax gains and losses expect to be reclassified into net earnings within next 12 months is $ 14. 0 million of expense.
 credit-risk-related contingent features derivative instruments contain provisions require to maintain investment grade credit rating on debt from major credit rat- ing agencies.
 if debt fall below investment grade counterparties to derivative instruments could request full collateralization on derivative instru- ments in net liability positions.
 aggregate fair value of all derivative instruments with credit-risk-related contingent features in liability position on may 27 , 2012  was $ 19. 9 million.
 posted col- lateral of $ 4. 3 million in normal course of business with contracts.
 if credit-risk-related contingent features agreements triggered on may 27 , 2012  would have required to post additional $ 15. 6 million of collateral to counterparties.
 concentrations credit counterparty credit risk during fiscal 2012  wal-mart stores , inc.
 affili- ates accounted for 22 percent of our con- solidated net sales and 30 percent of our net sales in u.
 retail segment.
 no other customer accounted for 10 percent or more of our consolidated net sales.
wal- mart represented 6 percent our net sales in international segment 7 percent net sales in bakeries and foodservice segment.
 as of may 27 , 2012  wal-mart accounted for 26 percent of our.
 retail receivables  5 percent international receiv- ables  9 percent bakeries and foodservice receivables.
 five largest customers in our. s.
 retail segment accounted for 54 percent of fiscal 2012 net sales  five largest customers international segment accounted for 26 percent of fiscal 2012 net sales five largest customers in bakeries and foodservice segment accounted for 46 percent of fis- cal 2012 net sales.
 we enter into interest rate, foreign exchange  cer- tain commodity and equity derivatives primarily with diversified group of highly rated counterparties.
 monitor positions credit rat- ings of counterparties involved by policy  limit credit exposure to any one party.
 transactions may expose us to potential losses due to risk of nonperformance by counterparties ; not incurred material loss.
 enter into commodity futures transactions through vari- ous regulated exchanges.
 amount of loss due to credit risk of coun- terparties  should counterparties fail to perform according to terms contracts , is $ 19. 5 million against which we do not hold collateral.
 under terms of master swap agreements some transactions require collateral or other security to support financial instruments subject to threshold levels exposure and counterparty credit risk.
 collateral assets are cash or.
 treasury instruments held in trust account may access if counterparty defaults.
 note 8.
 debt notes payable components of notes payable and respective weighted-average interest rates at end of periods were as follows:.
 to ensure availability of funds we maintain bank credit lines sufficient to cover outstanding short- term borrowings.
commercial paper continuing source of short-term financing.
 commercial paper programs available in united states europe.
 in april 2012  entered into fee-paid commit- ted credit lines  consisting $ 1. 0 billion facility sched- uled to expire in april 2015 $ 1. 7 billion facility

in millions            | may 27 2012 notes payable | may 27 2012 weighted- average interest rate | may 27 2012 notespayable | weighted-averageinterest rate
---------------------- | ------------------------- | ------------------------------------------- | ------------------------ | -----------------------------
u.s . commercial paper | $ 412.0                   | 0.2% ( 0.2 % )                              | $ 192.5                  | 0.2% ( 0.2 % )
financial institutions | 114.5                     | 10.0                                        | 118.8                    | 11.5
total                  | $ 526.5                   | 2.4% ( 2.4 % )                              | $ 311.3                  | 4.5% ( 4.5 % )


18.
 allowance for credit losses.
 ( 1 ) reclassified to conform current period 2019s presentation.
 ( 2 ) 2009 includes reductions to loan loss reserve $ 543 million to securitizations $ 402 million sale or transfers to held-for-sale of u. s.
 real estate lending loans  $ 562 million transfer of u. k.
 cards portfolio to held-for-sale.
 2008 includes reductions to loan loss reserve $ 800 million to fx translation  $ 102 million to securitizations $ 244 million for sale of german retail banking operation $ 156 million for sale of citicapital offset by additions of $ 106 million cuscatl e1n bank of overseas chinese acquisitions.
 2007 includes reductions to loan loss reserve of $ 475 million to securitizations transfers to loans held-for-sale  reductions $ 83 million transfer of u.
 citifinancial portfolio to held-for-sale  offset by additions of $ 610 million to acquisitions of egg , nikko cordial  grupo cuscatl e1n grupo financiero uno.
 ( 3 ) represents additional credit loss reserves for unfunded corporate lending commitments letters of credit recorded in other liabilities on consolidated balance sheet.

in millions of dollars                                                                 | 2009               | 2008 ( 1 )         | 2007 ( 1 )
-------------------------------------------------------------------------------------- | ------------------ | ------------------ | ----------------
allowance for loan losses at beginning of year                                         | $ 29616            | $ 16117            | $ 8940
gross credit losses                                                                    | -32784 ( 32784 )   | -20760 ( 20760 )   | -11864 ( 11864 )
gross recoveries                                                                       | 2043               | 1749               | 1938
net credit ( losses ) recoveries ( ncls )                                              | $ -30741 ( 30741 ) | $ -19011 ( 19011 ) | $ -9926 ( 9926 )
ncls                                                                                | $ 30741            | $ 19011            | $ 9926
net reserve builds ( releases )                                                        | 5741               | 11297              | 6550
net specific reserve builds ( releases )                                               | 2278               | 3366               | 356
total provision for credit losses                                                      | $ 38760            | $ 33674            | $ 16832
other net ( 2 )                                                                        | -1602 ( 1602 )     | -1164 ( 1164 )     | 271
allowance for loan losses at end of year                                               | $ 36033            | $ 29616            | $ 16117
allowance for credit losses on unfunded lending commitments at beginning of year ( 3 ) | $ 887              | $ 1250             | $ 1100
provision for unfunded lending commitments                                             | 244                | -363 ( 363 )       | 150
allowance for credit losses on unfunded lending commitments at end of year ( 3 )       | $ 1157             | $ 887              | $ 1250
total allowance for loans leases and unfunded lending commitments                      | $ 37190            | $ 30503            | $ 17367


2022 asset utilization 2013 response to economic conditions lower revenue in 2009 implemented productivity initiatives to improve efficiency reduce costs adjusting resources to reflect lower demand.
 varying resource reductions included removing from service 26% ( 26 % ) road locomotives 18% ( 18 % ) freight car inventory by year end.
 reduced shift levels at most rail facilities closed or significantly reduced operations in 30 of 114 principal rail yards.
 demand-driven resource adjustments productivity initiatives combined to reduce workforce by 10% ( 10 % ).
 2022 fuel prices 2013 economy worsened third fourth quarters 2008 fuel prices dropped dramatically reaching $ 33. 87 per barrel in december 2008 near five-year low.
 throughout 2009  crude oil prices increased ending year around $ 80 per barrel.
 average fuel price decreased by 44% ( 44 % ) in 2009 reducing operating expenses by $ 1. 3 billion compared to 2008.
 reduced consumption rate by 4% ( 4 % ) year saving approximately 40 million gallons of fuel.
 use of newer more fuel efficient locomotives ; increased use of distributed locomotive power fuel conservation programs improved network operations asset utilization contributed to improvement.
 2022 free cash flow 2013 cash generated by operating activities totaled $ 3. 2 billion yielding free cash flow of $ 515 million in 2009.
 free cash flow defined as cash provided by operating activities less cash used in investing activities dividends paid.
 free cash flow not considered a financial measure under accounting principles accepted in united states ( sec regulation g item 10 of sec regulation s-k.
 believe free cash flow important in evaluating financial performance measures ability to generate cash without additional external financings.
 free cash flow should be considered in addition to substitute for cash provided by operating activities.
table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions of dollars 2009 2008 2007.
 2010 outlook 2022 safety 2013 operating a safe railroad benefits employees  customers  shareholders  public.
 we continue using multi-faceted approach to safety  utilizing technology , risk assessment  quality control  training  by engaging employees.
 continue implementing total safety culture ( tsc ) throughout operations.
 tsc is designed to establish  maintain reinforce promote safe practices among co-workers.
 this process allows us to identify and implement best practices for employee and operational safety.
 reducing grade-crossing incidents is critical aspect of safety programs continue efforts to maintain  upgrade close crossings ; install video cameras on locomotives educate public about crossing safety through our own programs, industry programs  other activities.
 2022 transportation plan 2013 to build upon success years continue evaluating traffic flows and network logistic patterns  dynamic year-to to identify additional opportunities to simplify operations remove network variability improve network efficiency and asset utilization.
 plan to adjust manpower and locomotive and rail car fleets to

millions of dollars                   | 2009           | 2008           | 2007
------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 3234         | $ 4070         | $ 3277
cash used in investing activities     | -2175 ( 2175 ) | -2764 ( 2764 ) | -2426 ( 2426 )
dividends paid                        | -544 ( 544 )   | -481 ( 481 )   | -364 ( 364 )
free cash flow                        | $ 515          | $ 825          | $ 487


american tower corporation subsidiaries notes to consolidated financial statements when determined uncollectible.
 determination includes analysis consideration of particular conditions of account.
 changes in allowances were as follows for years ended december 31 , ( in thousands ) :.
 functional currency 2014as result of changes to organizational structure of company 2019s subsidiaries in latin america in 2010 , company determined effective january 1, 2010 , functional currency of foreign subsidiary in brazil is brazilian real.
 all assets and liabilities held by subsidiary in brazil translated into u. s.
 dollars at exchange rate effect at end of applicable reporting period.
 revenues and expenses translated at average monthly exchange rates cumulative translation effect included in equity.
 change in functional currency from u. s.
 dollars to brazilian real gave rise to increase in net value of certain non-monetary assets and liabilities.
 aggregate impact on such assets and liabilities was $ 39. 8 million with offsetting increase in accumulated other comprehensive income during year ended december 31 , 2010.
 result of renegotiation of company 2019s agreements with grupo iusacell ,.
 c. v.
 ( 201ciusacell 201d ) included changes converting iusacell 2019s contractual obligations to company from u. s.
 dollars to mexican pesos  company determined effective april 1, 2010 , functional currency of certain foreign subsidiaries in mexico is mexican peso.
 all assets and liabilities held by subsidiaries in mexico translated into u. s.
 dollars at exchange rate effect at end of applicable reporting period.
 revenues and expenses translated at average monthly exchange rates cumulative translation effect included in equity.
 change in functional currency from u. s.
dollars to mexican pesos decrease in net value of non-monetary assets liabilities.
 aggregate impact on assets liabilities was $ 33. 6 million with offsetting decrease in accumulated other comprehensive income.
 functional currency of company 2019s other foreign operating subsidiaries is also respective local currency.
 all assets and liabilities subsidiaries translated into u. s.
 dollars at exchange rate at end of applicable fiscal reporting period.
 revenues and expenses translated at average monthly exchange rates.
 cumulative translation effect included in equity as component of accumulated other comprehensive income.
 foreign currency transaction gains and losses recognized in consolidated statements of operations result of transactions of subsidiary denominated in currency other than its functional currency.
 cash and cash equivalents 2014cash equivalents include cash on hand  demand deposits short-term investments including money market funds  with remaining maturities of three months or less when acquired cost approximates fair value.
 restricted cash 2014the company classifies as restricted cash all cash pledged as collateral to secure obligations cash use limited by contractual provisions including cash on deposit in reserve accounts to commercial mortgage pass-through certificates , series 2007-1 issued in company 2019s securitization transaction secured cellular site revenue notes , series 2010-1 class c , series 2010-2 class c series 2010-2 class f  assumed by company of acquisition of legal entities from unison holdings , llc and unison site management ii  l.
 201cunison 201d ).

| 2012             | 2011             | 2010
-------------------------------------- | ---------------- | ---------------- | ----------------
balance as of january 1                | $ 24412          | $ 22505          | $ 28520
current year increases                 | 8028             | 17008            | 16219
write-offs net of recoveries and other | -12034 ( 12034 ) | -15101 ( 15101 ) | -22234 ( 22234 )
balance as of december 31              | $ 20406          | $ 24412          | $ 22505