containerboard  kraft papers saturating kraft.
 kapstone owns victory packaging , packaging solutions distribution company with facilities in u. s. , canada mexico.
 included financial results of kapstone in corrugated packaging segment since acquisition.
 on september 4 , 2018  completed acquisition ( 201cschl fcter acquisition 201d ) of schl fcter print pharma packaging ( 201cschl fcter 201d ).
 schl fcter is leading provider of differentiated paper packaging solutions german-based supplier of full range of leaflets booklets.
 schl fcter acquisition allowed to enhance pharmaceutical and automotive platform expand geographical footprint in europe to better serve customers.
 included financial results of acquired operations in consumer packaging segment since acquisition.
 on january 5 , 2018  completed acquisition ( 201cplymouth packaging acquisition 201d ) of all assets of plymouth packaging , inc.
 ( 201cplymouth 201d ).
 assets acquired included plymouth 2019s 201cbox on demand 201d systems  manufactured by panotec italian manufacturer of packaging machines.
 addition of box on demand systems enhanced platform  differentiation innovation.
 systems located on customers 2019 sites under multi-year exclusive agreements use fanfold corrugated to produce custom on-demand corrugated packaging accurately sized for any product type according to customer 2019s specifications.
 fanfold corrugated is continuous corrugated board  folded periodically to form accordion-like stack of corrugated material.
 part of transaction westrock acquired plymouth 2019s equity interest in panotec plymouth 2019s exclusive right from panotec to distribute panotec 2019s equipment in u. s.
 canada.
 fully integrated approximately 60000 tons of containerboard used by plymouth annually.
included financial results of plymouth in corrugated packaging segment since date acquisition.
 see 201cnote 3.
 acquisitions and investment 201d of notes to consolidated financial statements for additional information.
 see also item 1a.
 201crisk factors 2014 may unsuccessful in making integrating mergers  acquisitions investments completing divestitures 201d.
 business.
 in fiscal 2019 continued pursue strategy of offering differentiated paper and packaging solutions help customers win.
 successfully executed strategy in fiscal 2019 in rapidly changing cost and price environment.
 net sales of $ 18289. 0 million for fiscal 2019 increased $ 2003. 9 million  or 12. 3% ( 12. 3 % ) compared to fiscal 2018.
 increase primarily due to kapstone acquisition higher selling price/mix in corrugated packaging and consumer packaging segments.
 increases partially offset by absence of recycling net sales in fiscal 2019 conducting operations primarily as procurement function first quarter of fiscal 2019 lower volumes unfavorable foreign currency impacts segments prior year decreased land and development net sales.
 segment income increased $ 82. 6 million in fiscal 2019 compared to fiscal 2018 primarily due to increased corrugated packaging segment income partially offset by lower consumer packaging land and development segment income.
 impact of contribution from acquired kapstone operations  higher selling price/mix across segments productivity improvements largely offset by lower volumes segments economic downtime  cost inflation increased maintenance scheduled strategic outage expense ( including projects at mahrt , al covington , va mills ) lower land and development segment income due to wind-down of sales.
 segment income experienced higher levels of cost inflation in corrugated packaging and consumer packaging segments during fiscal 2019 compared to fiscal 2018 partially offset by recovered fiber deflation.
primary inflationary items were virgin fiber  freight energy wage other costs.
 generated $ 2310. 2 million net cash operating activities in fiscal 2019 compared to $ 1931. 2 million fiscal 2018.
 remained committed to disciplined capital allocation strategy during fiscal

( in millions ) | year ended september 30 , 2019 | year ended september 30 , 2018
--------------- | ------------------------------ | ------------------------------
net sales       | $ 18289.0                      | $ 16285.1
segment income  | $ 1790.2                       | $ 1707.6


entergy mississippi , inc.
 management's financial discussion analysis other regulatory charges ( credits ) no effect on net income due recovery refund expenses.
 other regulatory credits increased due to under-recovery through grand gulf rider of grand gulf capacity charges.
 2003 compared to 2002 net revenue  measure of gross margin  consists of operating revenues net of 1 fuel  fuel-related  purchased power expenses 2 ) other regulatory charges ( credits ).
 analysis of change in net revenue comparing 2003 to 2002.
 increase in base rates effective january 2003 approved by mpsc.
 gross operating revenue , fuel purchased power expenses other regulatory charges credits gross operating revenues increased due to increase in base rates effective january 2003 increase of $ 29. 7 million in fuel cost recovery revenues due to quarterly changes in fuel factor from increases in market prices of natural gas purchased power.
 increase partially offset by decrease of $ 35. 9 million in gross wholesale revenue decreased generation purchases less energy for resale sales.
 fuel and fuel-related expenses decreased due to decreased recovery of fuel purchased power costs decreased generation  partially offset by increase in market price of purchased power.
 other regulatory charges increased due to over-recovery of capacity charges related to grand gulf rate rider cessation of grand gulf accelerated recovery tariff suspended in july 2003.
 other income statement variances 2004 compared to 2003 other operation and maintenance expenses increased due to 2022 increase of $ 6. 6 million in customer service support costs ; 2022 increase of $ 3. 7 million in benefit costs.
 increase partially offset by absence of voluntary severance program accruals of $ 7. 1 million in 2003.
 taxes other than income taxes increased due to higher assessment of ad valorem and franchise taxes compared to same period 2003.
 2003 compared to 2002 operation maintenance expenses increased due to 2022 voluntary severance program accruals $ 7. 1 million ; 2022 increase $ 4. 4 million benefit costs.

| ( in millions )
---------------- | ---------------
2002 net revenue | $ 380.2
base rates       | 48.3
other            | -1.9 ( 1.9 )
2003 net revenue | $ 426.6


five year $ 1350 million revolving  multi- currency senior unsecured credit facility maturing november 30 , 2012 ( senior credit facility ).
 $ 128. 8 million outstanding under senior credit facility at december 31 , 2009 availability of $ 1221. 2 million.
 senior credit facility contains provisions can increase line to $ 1750 million.
 available uncommitted credit facilities totaling $ 84. 1 million.
 may use excess cash or borrow against senior credit facility subject to limits set by board of directors to repurchase additional common stock under $ 1. 25 billion program expires december 31 , 2010.
 approximately $ 211. 1 million remains authorized for future repurchases under plan.
 management believes cash flows from operations and available borrowings under senior credit facility sufficient to meet expected working capital  capital expenditure debt service needs.
 investment opportunities arise believe earnings  balance sheet cash flows allow to obtain additional capital if necessary.
 contractual obligations entered into contracts with third parties normal business require future payments.
 table illustrates contractual obligations ( in millions ) : contractual obligations total 2010.
 long-term income taxes payable 94. 3 2013 56. 5 15. 3 22. 5 other long-term liabilities 234. 2 2013 81. 7 26. 2 126. 3 total contractual obligations $ 2719. 3 $ 118. 8 $ 423. 5 $ 172. 0 $ 2005. 0 critical accounting estimates financial results affected by selection application of accounting policies and methods.
 significant accounting policies require management 2019s judgment discussed.
 excess inventory and instruments 2013 must determine of each balance sheet date how much of inventory may be unsaleable or unsaleable at carrying cost.
 determine if instruments on hand be put to productive use or remain undeployed result of excess supply.
reserves established to adjust inventory instruments to net realizable value.
 to determine appropriate level of reserves we evaluate current stock levels in relation to historical expected patterns of demand for all our products instrument systems components.
 basis for determination generally same for all inventory instrument items categories except for work-in-progress inventory, recorded at cost.
 obsolete or discontinued items generally destroyed and completely written off.
 management evaluates need for changes to valuation reserves based on market conditions , competitive offerings other factors regular basis.
 income taxes 2013 our income tax expense, deferred tax assets liabilities reserves for unrecognized tax benefits reflect management 2019s best assessment of estimated future taxes to be paid.
 subject to income taxes in both u. s.
 and numerous foreign jurisdictions.
 significant judgments estimates required in determining consolidated income tax expense.
 estimate income tax expense income tax liabilities assets by taxable jurisdiction.
 realization of deferred tax assets in each taxable jurisdiction dependent on ability to generate future taxable income sufficient to realize benefits.
 evaluate deferred tax assets on ongoing basis provide valuation allowances if determined to likely not deferred tax benefit not be realized.
 federal income taxes provided on portion of income of foreign subsidiaries expected to be remitted to u. s.
 calculation of tax liabilities involves dealing with uncertainties in application of complex tax laws regulations in multitude of jurisdictions across global operations.
 subject to regulatory review or audit in virtually all those jurisdictions reviews audits may require extended periods of time to resolve.
 record income tax provisions based on knowledge of all relevant facts circumstances including existing tax laws experience with previous settlement agreements status of current examinations understanding of how tax authorities view certain relevant industry commercial matters.
recognize tax liabilities with financial accounting standards board 2019s ( fasb ) guidance on income taxes adjust liabilities when judgment changes evaluation new information not previously available.
 due to complexity uncertainties ultimate resolution may result in payment different from current estimate of tax liabilities.
 differences reflected as increases or decreases to income tax expense in period determined.
 commitments contingencies 2013 accruals for product liability other claims established with internal external legal counsel based on current information historical settlement information for claims related legal fees claims incurred but not reported.
 use actuarial model to assist management determining appropriate level of accruals for product liability claims.
 historical patterns of claim loss development z i m m e r h o l d i n g s , i n c.
 2 0 0 9 f o r m 1 0 - k a n n u a l r e p o r t %%transmsg*** transmitting job : c55340 pcn : 030000000 ***%%pcmsg|30 |00011|yes|no|02/24/2010 00:22|0|0|page is valid, no graphics -- color : d|

contractual obligations        | total    | 2010    | 2011 and 2012 | 2013 and 2014 | 2015 and thereafter
------------------------------ | -------- | ------- | ------------- | ------------- | -------------------
long-term debt                 | $ 1127.6 | $ 2013  | $ 128.8       | $ 2013        | $ 998.8
interest payments              | 1095.6   | 53.7    | 103.8         | 103.8         | 834.3
operating leases               | 134.6    | 37.3    | 47.6          | 26.6          | 23.1
purchase obligations           | 33.0     | 27.8    | 5.1           | 0.1           | 2013
long-term income taxes payable | 94.3     | 2013    | 56.5          | 15.3          | 22.5
other long-term liabilities    | 234.2    | 2013    | 81.7          | 26.2          | 126.3
total contractual obligations  | $ 2719.3 | $ 118.8 | $ 423.5       | $ 172.0       | $ 2005.0


agreements govern indebtedness assumed in with acquisition contain covenants impose restrictions on us and our subsidiaries may affect our ability to operate our businesses.
 agreements govern indebtedness in with carefusion transaction contain affirmative and negative covenants may  subject to restrict our ability and ability of our subsidiaries ( including carefusion ) to  have liens on property  transact business with affiliates merge or consolidate with person or sell or convey our assets to one person.
 in some agreements govern indebtedness contain financial covenants require us to maintain financial ratios.
 our ability ability of subsidiaries to comply with these provisions may be affected by events beyond our control.
 failure to comply with covenants could result in event of default , if not could accelerate our repayment obligations.
 item 1b.
 unresolved staff comments.
 item 2.
 properties.
 bd 2019s executive offices located in franklin lakes , new jersey.
 as of october 31 , 2016  bd owned or leased 255 facilities throughout world  comprising approximately 19796011 square feet of manufacturing , warehousing , administrative and research facilities.
 u. s.
 facilities , including in puerto rico , comprise approximately 7459856 square feet of owned and 2923257 square feet of leased space.
 international facilities comprise approximately 7189652 square feet of owned and 2223245 square feet of leased space.
 sales offices and distribution centers included in total square footage also located throughout the world.
 operations in each of bd 2019s business segments conducted at both u. s.
 and international locations.
in international marketplace  facilities often serve more than one business segment used for multiple purposes administrative/sales , manufacturing warehousing/distribution.
 bd seeks to own its manufacturing facilities some leased.
 table summarizes property information by business segment.
 ( a ) facilities used by more than one business segment.
 bd believes its facilities of good construction in good physical condition suitable adequate for operations with minor exceptions fully utilized operating at normal capacity.
.
 facilities located in alabama , arizona , california , connecticut, florida , georgia , illinois , indiana , maryland , massachusetts, michigan , nebraska , new jersey , north carolina , ohio , oklahoma , south carolina , texas , utah , virginia , washington ,. washington  wisconsin puerto rico.
 international facilities as follows : - europe , middle east , africa  includes facilities in austria , belgium, bosnia and herzegovina czech republic , denmark, england, finland , france , germany, ghana, hungary, ireland, italy , kenya , luxembourg, netherlands , norway , poland , portugal , russia , saudi arabia , south africa , spain , sweden , switzerland , turkey  united arab emirates zambia.

sites       | corporate | bd life sciences | bd medical | mixed ( a ) | total
----------- | --------- | ---------------- | ---------- | ----------- | --------
leased      | 11        | 19               | 75         | 92          | 195
owned       | 3         | 15               | 31         | 121         | 60
total       | 14        | 34               | 106        | 103         | 255
square feet | 1425720   | 4337963          | 9891908    | 4140420     | 19796011


2005  amended $ 1. 0 billion unsecured revolving credit facility to extend maturity date from march 27, 2008 to march 27 , 2010 reduce effective interest rate to libor plus 1. 0% ( 1. 0 % ) commitment fee to 0. 2% ( 0. 2 % ) of undrawn portion facility at december 31 , 2005.
 2005 entered two $ 100. 0 million unsecured term loans  due 2010 at effective interest rate libor plus 0. 8% ( 0. 8 % ) at december 31 , 2005.
 2004 entered eight-year  $ 225. 0 million unse- cured term loan  at libor plus 1. 75% (. ) amended 2005 to reduce effective interest rate to libor plus 1. 0% ( 1. 0 % ) at december 31 , 2005.
 liquid yield option 2122 notes zero coupon convertible notes are unsecured zero coupon bonds with yields to maturity of 4. 875% ( 4. 875 % ) and 4. 75% ( 4. 75 % )  due 2021.
 each liquid yield option 2122 note zero coupon convertible note issued at price of $ 381. 63 and $ 391. 06  principal amount at maturity of $ 1000.
 each liquid yield option 2122 note zero coupon convertible note convertible at option holder into 11. 7152 and 15. 6675 shares of common stock if market price common stock reaches certain lev- els.
 conditions met at december 31 , 2005 and 2004 for zero coupon convertible notes and december 31 , 2004 liquid yield option 2122 notes.
since february 2 , 2005  right to redeem liquid yield option 2122 notes commencing may 18 , 2006 right to redeem zero coupon con- vertible notes at accreted values for cash as whole any time or time to time in part.
 holders may require us to pur- chase outstanding liquid yield option 2122 notes at accreted value on february 2 , 2011 and outstanding zero coupon con- vertible notes at accreted value on may 18, 2009 and may 18 , 2014.
 choose to pay purchase price in cash or common stock or combination thereof.
 during 2005  holders of liquid yield option 2122 notes and zero coupon convertible notes converted approximately $ 10. 4 million and $ 285. 0 million  of accreted value notes into approximately 0. 3 million and 9. 4 million shares  of our common stock and cash for fractional shares.
 called for redemption $ 182. 3 million of accreted bal- ance of outstanding liquid yield option 2122 notes.
 most holders elected to convert into shares of common stock rather than redeem for cash in issuance of approximately 4. 5 million shares.
 during 2005  prepaid total $ 297. 0 million on term loan secured by certain celebrity ship and variable rate unsecured term loan.
 in 1996  entered into $ 264. 0 million capital lease to finance splendour of the seas in 1995 entered $ 260. 0 million capital lease to finance legend of the seas.
 during 2005  paid $ 335. 8 million in connection with exercise of purchase options on capital lease obligations.
 under certain agreements contractual interest rate and commitment fee vary with debt rating.
 unsecured senior notes and senior debentures not redeemable prior to maturity.
debt agreements contain covenants require us to maintain minimum net worth fixed charge cov- erage ratio limit debt to capital ratio.
 in compliance with all covenants as of december 31 , 2005.
 following schedule of annual maturities on long-term debt as of december 31 , 2005 for each next five years ( in thousands ) :.
 $ 137. 9 million accreted value of zero coupon convertible notes at december 31 , 2005 is included in year 2009.
 holders of zero coupon convertible notes may require us to purchase notes outstanding at accreted value of $ 161. 7 mil- lion on may 18 , 2009.
 accreted value calculated based on number of notes outstanding at december 31 , 2005.
 may choose to pay amounts in cash or common stock or combination thereof.
 note 6.
 shareholders 2019 equity on september 25 , 2005  announced we investment bank finalized forward sale agreement relating to asr transaction.
 of purchased 5. 5 million shares of common stock from investment bank at initial price of $ 45. 40 per share.
 total consideration paid to repurchase such shares  including commissions other fees was approxi- mately $ 249. 1 million recorded in shareholders 2019 equity as component of treasury stock.
 forward sale contract matured in february 2006.
 forward sale contract investment bank purchased shares of our common stock in open market to settle obliga- tion related to shares borrowed from third parties.
 upon settlement contract received 218089 additional shares of common stock.
 these incremental shares recorded in shareholders 2019 equity as component of treasury stock in first quarter of 2006.
 employee stock purchase plan ( 201cespp 201d ) in effect since january 1 , 1994 facilitates purchase by employees of up to 800000 shares of common stock.
offerings to employees made quarterly basis.
 subject to limitations , pur- chase price for each share common stock equal to 90% ( % ) of average market prices common stock as reported on new york stock exchange first business day of pur- chase period and last business day of each month pur- chase period.
 shares of common stock of 14476 , 13281 21280 38 royal caribbean cruises ltd.
 notes to consolidated financial statements ( continued )

2006       | $ 600883
---------- | --------
2007       | 329493
2008       | 245257
2009 ( 1 ) | 361449
2010       | 687376


table of contents index to financial statements item 3.
 legal proceedings.
 item 4.
 safety disclosures.
 not applicable.
 part ii price range common stock trades on nasdaq global select market under symbol 201cmktx 201d.
 range of closing price information for common stock reported by nasdaq follows : on february 16, 2012  last reported closing price common stock on nasdaq global select market was $ 32. 65.
 holders 41 holders of record common stock as of february 16 , 2012.
 dividend policy initiated regular quarterly dividend in fourth quarter of 2009.
 during 2010 and 2011  paid quarterly cash dividends of $ 0. 07 per share and $ 0. 09 per share respectively.
 january 2012  board of directors approved quarterly cash dividend of $ 0. 11 per share payable on march 1 , 2012 to stockholders of record close of business february 16 , 2012.
 future declaration and payment of dividends at sole discretion of company 2019s board of directors.
 board of directors may take into account general business conditions company 2019s financial results capital requirements contractual  legal  regulatory restrictions on payment of dividends company 2019s stockholders company 2019s subsidiaries parent other factors board of directors relevant.
 recent sales of unregistered securities item 5.
 market for registrant 2019s common equity  related stockholder matters issuer purchases of equity securities.

2011:                              | high    | low
---------------------------------- | ------- | -------
january 1 2011 to march 31 2011    | $ 24.19 | $ 19.78
april 1 2011 to june 30 2011       | $ 25.22 | $ 21.00
july 1 2011 to september 30 2011   | $ 30.75 | $ 23.41
october 1 2011 to december 31 2011 | $ 31.16 | $ 24.57
2010:                              | high    | low
january 1 2010 to march 31 2010    | $ 16.20 | $ 13.25
april 1 2010 to june 30 2010       | $ 17.40 | $ 13.45
july 1 2010 to september 30 2010   | $ 17.30 | $ 12.39
october 1 2010 to december 31 2010 | $ 20.93 | $ 16.93


$ 19 million expenses in 2011 and 2010  respectively remaining expense unallocated.
 company financed acquisition with proceeds from $ 1. 0 billion three-year term loan credit facility , $ 1. 5 billion in unsecured notes  issuance of 61 million shares of aon common stock.
 outstanding hewitt stock options converted into options to purchase 4. 5 million shares of aon common stock.
 items detailed in note 8 2018 2018debt 2019 2019 and note 11 2018 2018stockholders 2019 equity 2019.
 transaction accounted for using acquisition method of accounting requires most assets acquired and liabilities assumed recognized at fair values as of acquisition date.
 table summarizes amounts recognized for assets acquired and liabilities assumed as of acquisition date ( in millions ) : amounts recorded as of acquisition.
 ( 1 ) includes cash and cash equivalents  short-term investments  client receivables other current assets accounts payable other current liabilities.
 ( 2 ) includes deferred contract costs and long-term investments.
 ( 3 ) includes unfavorable lease obligations and deferred contract revenues.
 ( 4 ) included in other current assets ( $ 31 million ), deferred tax assets ( $ 30 million ) other current liabilities ( $ 7 million ) deferred tax liabilities ( $ 1. 1 billion ) in company 2019s consolidated statements of financial position.
 acquired customer relationships amortized over average life of 12 years.
 technology asset amortized over 7 years trademarks determined to have indefinite useful lives.
goodwill calculated as excess of acquisition cost over fair value of net assets acquired represents synergies and other benefits expected to arise from combining operations of hewitt with operations of aon , and future economic benefits arising from other assets acquired not be individually identified separately recognized.
 goodwill not amortized not deductible for tax purposes.
 single estimate of fair value results from complex series of company 2019s judgments about future events uncertainties relies heavily on estimates and assumptions.
 company 2019s

| amountsrecorded as ofthe acquisitiondate
------------------------------------------- | ----------------------------------------
working capital ( 1 )                       | $ 348
property equipment and capitalized software | 297
identifiable intangible assets:             |
customer relationships                      | 1800
trademarks                                  | 890
technology                                  | 215
other noncurrent assets ( 2 )               | 344
long-term debt                              | 346
other noncurrent liabilities ( 3 )          | 360
net deferred tax liability ( 4 )            | 1021
net assets acquired                         | 2167
goodwill                                    | 2765
total consideration transferred             | $ 4932


westrock company notes to consolidated financial statements at september 30 , 2018 and september 30 , 2017  gross net operating losses for foreign reporting purposes of approximately $ 698. 4 million and $ 673. 7 million  available for carryforward.
 majority of loss carryforwards expire between fiscal 2020 and 2038  portion have indefinite carryforward.
 tax effected values of net operating losses are $ 185. 8 million and $ 182. 6 million at september 30, 2018 and 2017  exclusive of valuation allowances of $ 161. 5 million and $ 149. 6 million at september 30, 2018 and 2017.
 at september 30 , 2018 2017 state tax credit carryforwards of $ 64. 8 million and $ 54. 4 million .
 state tax credit carryforwards expire within 5 to 10 years ; certain state credits can be carried forward indefinitely.
 valuation allowances of $ 56. 1 million and $ 47. 3 million at september 30 , 2018 and 2017 provided on these assets.
 valuation allowances recorded due to uncertainty regarding ability to generate sufficient taxable income in appropriate taxing jurisdiction.
 following table summary of valuation allowances against deferred tax assets for fiscal 2018 , 2017 2016 ( in millions ) :.
 amounts in fiscal 2018 and 2017 relate to mps acquisition.
 adjustments in fiscal 2016 relate to combination and sp fiber acquisition.
 with prior years consider portion of earnings from certain foreign subsidiaries as subject to repatriation provide for taxes.
 consider unremitted earnings and other outside basis differences from other foreign subsidiaries to be indefinitely reinvested.
 not provided for any taxes due.
as of september 30 , 2018  estimate our outside basis difference in foreign subsidiaries considered indefinitely reinvested to be approximately $ 1. 5 billion.
 components of outside basis difference of purchase accounting adjustments , undistributed earnings  equity components.
 except for portion earnings from certain foreign subsidiaries where provided for taxes  not provided for any taxes due upon reversal of outside basis differences.
 in event distribution in form of dividends or dispositions of subsidiaries  may be subject to incremental u. s.
 income taxes , adjustment for foreign tax credits, and withholding taxes or income taxes payable to foreign jurisdictions.
 as of september 30 , 2018  determination of amount of unrecognized deferred tax liability related to remaining undistributed foreign earnings not subject to transition tax and additional outside basis differences not practicable.

| 2018           | 2017           | 2016
----------------------------------------------- | -------------- | -------------- | --------------
balance at beginning of fiscal year             | $ 219.1        | $ 177.2        | $ 100.2
increases                                       | 50.8           | 54.3           | 24.8
allowances related to purchase accounting ( 1 ) | 0.1            | 12.4           | 63.0
reductions                                      | -40.6 ( 40.6 ) | -24.8 ( 24.8 ) | -10.8 ( 10.8 )
balance at end of fiscal year                   | $ 229.4        | $ 219.1        | $ 177.2


american tower corporation subsidiaries notes consolidated financial statements 2014 continued ) 2003 were $ 10. 08 , $ 7. 05 , $ 6. 32 per share , respectively.
 key assumptions apply pricing model : july 1, 2005 2013 december 31 , 2005 january 1 , 2005 2013 june 30 , 2005 2004 2003.
 voluntary option exchanges 2014in february 2004  company issued to eligible employees 1032717 options exercise price $ 11. 19 per share  fair market value of class a common stock on date of grant.
 options issued connection with voluntary option exchange program company in august 2003 company accepted for surrender cancelled options to purchase total 1831981 shares of class a common stock exercise price of $ 10. 25 or greater.
 program  offered to both full and part-time employees excluding company 2019s executive officers directors provided for grant ( six months one day from surrender date to employees still employed date ) of new options exercisable for two shares of class a common stock for every three shares of class a common stock issuable upon exercise surrendered option.
 no options granted to employees participated in exchange offer between cancellation date new grant atc mexico stock option plan 2014the company maintains stock option plan in atc mexico subsidiary ( atc mexico plan ).
 atc mexico plan provides for issuance of options to officers , employees directors consultants of atc mexico.
 atc mexico plan limits number shares of common stock granted to aggregate of 360 shares subject to adjustment based on changes in atc mexico 2019s capital structure.
 during 2002 , atc mexico granted options to purchase 318 shares of atc mexico common stock to officers employees.
 options issued one time exercise price of $ 10000 per share.
exercise price per share at fair market value determined by board of directors with independent appraisal at company 2019s request.
 fair value of atc mexico plan options granted during 2002 were $ 3611 per share determined black-scholes option pricing model.
 in note 11 all outstanding options exercised in march 2004.
 no options under atc mexico plan outstanding as of december 31 , 2005.
 see note 11. atc south america stock option plan 2014the company maintains stock option plan in atc south america subsidiary ( atc south america plan ).
 atc south america plan provides for issuance of options to officers  employees directors consultants of atc south america.
 atc south america plan limits number of shares of common stock granted to aggregate of 6144 shares  ( approximate 10. 3%. ) interest on fully-diluted basis subject to adjustment based on changes in atc south america 2019s capital structure.
 during 2004  atc south america granted options to purchase 6024 shares of atc south america common stock to officers and employees including messrs.
 gearon and hess  received options to purchase approximate 6. 7% ( 6. 7 % ) and 1. 6% ( 1. 6 % ) interest  respectively.
 options issued at one time with exercise price of $ 1349 per share.
 exercise price per share at fair market value on date of issuance determined by board of directors with independent appraisal at company 2019s request.
 fair value of atc south america plan options granted during 2004 were $ 79 per share determined black-scholes option pricing model.
 options granted vest upon earlier occur of exercise by or on behalf of mr.
 gearon of right to sell interest in atc south america to company

| july 1 2005 2013 december 31 2005   | january 1 2005 2013 june 30 2005    | 2004             | 2003
---------------------------------------------------------------------------------- | ----------------------------------- | ----------------------------------- | ---------------- | ----------------
approximate risk-free interest rate                                                | 3.22% ( 3.22 % ) - 4.40% ( 4.40 % ) | 4.17% ( 4.17 % ) - 4.40% ( 4.40 % ) | 4.23% ( 4.23 % ) | 4.00% ( 4.00 % )
expected life of option grants                                                     | 6.25 years                          | 4 years                             | 4 years          | 4 years
expected volatility of underlying stock                                            | 29.6% ( 29.6 % )                    | 75.3% ( 75.3 % ) - 79.2% ( 79.2 % ) | 80.6% ( 80.6 % ) | 86.6% ( 86.6 % )
expected volatility of underlying stock ( atc mexico and atc south america plans ) | n/a                                 | n/a                                 | n/a              | n/a
expected dividends                                                                 | n/a                                 | n/a                                 | n/a              | n/a


notes to consolidated financial statements guarantees of subsidiaries.
 group inc.
 fully unconditionally guarantees securities issued by gs finance corp. wholly-owned finance subsidiary of group.
 guaranteed payment obligations of goldman , sachs & co.
 ( gs&co. gs bank usa goldman sachs execution & clearing .
 ( gsec ) subject to exceptions.
 in november 2008 firm contributed subsidiaries into gs bank usa group inc.
 agreed to guarantee reimbursement of certain losses including credit-related losses relating to assets held by contributed entities.
 guarantee group inc.
 agreed to pledge to gs bank usa certain collateral including interests in subsidiaries other illiquid assets.
 group inc.
 guarantees obligations of other consolidated subsidiaries transaction-by- transaction basis as negotiated with counterparties.
 group.
 unable to develop estimate of maximum payout under subsidiary guarantees guaranteed obligations are obligations of consolidated subsidiaries group inc. liabilities as guarantor not separately disclosed.
 note 19.
 shareholders 2019 equity common equity dividends declared per common share were $ 2. 25 in 2014  $ 2. 05 in 2013 $ 1. 77 in 2012.
 on january 15 , 2015 group inc.
 declared dividend of $ 0. 60 per common share paid on march 30 , 2015 to common shareholders of record march 2 , 2015.
 firm 2019s share repurchase program intended to maintain appropriate level of common equity.
share repurchase program effected primarily through regular open-market purchases ( may include repurchase plans comply with rule 10b5-1 )  amounts timing determined by firm 2019s current projected capital position  influenced by general market conditions prevailing price trading volumes of firm 2019s common stock.
 prior to repurchasing common stock firm must receive confirmation federal reserve board does not object to capital actions.
 table below presents amount of common stock repurchased by firm under share repurchase program during 2014 , 2013 2012.
 total cost of common share repurchases $ 5469 $ 6175 $ 4637 certain share-based compensation plans  employees may remit shares to firm or firm may cancel restricted stock units ( rsus ) or stock options to satisfy minimum statutory employee tax withholding requirements exercise price of stock options.
 under plans during 2014 , 2013 2012  employees remitted 174489 shares , 161211 shares 33477 shares with total value of $ 31 million , $ 25 million $ 3 million  firm cancelled 5. 8 million , 4. 0 million 12. 7 million of rsus with total value of $ 974 million , $ 599 million $ 1. 44 billion.
 under plans firm also cancelled 15. 6 million stock options with total value of $ 2. 65 billion during 2014.
 170 goldman sachs 2014 annual

in millions except per share amounts   | year ended december 2014 | year ended december 2013 | year ended december 2012
-------------------------------------- | ------------------------ | ------------------------ | ------------------------
common share repurchases               | 31.8                     | 39.3                     | 42.0
average cost per share                 | $ 171.79                 | $ 157.11                 | $ 110.31
total cost of common share repurchases | $ 5469                   | $ 6175                   | $ 4637


item 4.
 mine safety disclosures not applicable part ii item 5.
 market for registrant 2019s common equity related stockholder matters issuer purchases of equity securities common stock ( ticker symbol apd ) listed on new york stock exchange.
 transfer agent and registrar is broadridge corporate issuer solutions  inc.
 box 1342  brentwood  new york 11717 telephone ( 844 ) 318-0129 ( u. s. ) or ( 720 ) 358-3595 ( other locations ) ; website http://shareholder. broadridge. com/ airproducts e-mail address shareholder@broadridge. com.
 as of 31 october 2018 5391 record holders of common stock.
 cash dividends on company 2019s common stock paid quarterly.
 expectation continue to pay cash dividends future at comparable or increased levels.
 board of directors determines declare dividends timing amount based on financial condition other factors.
 dividend information for each quarter of fiscal years 2018 and 2017 summarized below:.
 purchases of equity securities by issuer on 15 september 2011  board of directors authorized repurchase of up to $ 1. 0 billion of outstanding common stock.
 program stated expiration date.
 repurchase shares pursuant to rules 10b5-1 and 10b-18 under securities exchange act of 1934 through repurchase agreements with more brokers.
 no purchases of stock during fiscal year 2018.
 at 30 september 2018  $ 485. 3 million in share repurchase authorization remained.
 additional purchases completed at company 2019s discretion maintaining sufficient funds for investing in businesses growth opportunities.

| 2018   | 2017
-------------- | ------ | ------
first quarter  | $ .95  | $ .86
second quarter | 1.10   | .95
third quarter  | 1.10   | .95
fourth quarter | 1.10   | .95
total          | $ 4.25 | $ 3.71


instruments at fair value recognize effective and ineffective portions of cash flow hedges.
 2 for year ended december 31 , 2000  earnings available to common stockholders includes reductions of $ 2371 of preferred stock dividends $ 16266 for redemption of pca 2019s 123 20448% ( 20448 % ) preferred stock.
 on october 13 , 2003  pca announced intention to begin paying quarterly cash dividend of $ 0. 15 per share , or $ 0. 60 per share annually on common stock.
 first quarterly dividend of $ 0. 15 per share paid january 15, 2004 to shareholders of record as of december 15 , 2003.
 pca not declare dividends on common stock in 2000 - 2002.
 total long-term obligations include long-term debt , short-term debt current maturities of long-term debt.
 item 7.
 management 2019s discussion analysis of financial condition results of operations discussion of historical results of operations financial condition read in conjunction with audited financial statements notes elsewhere in report.
 overview april 12 , 1999  pca acquired containerboard and corrugated products business of pactiv corporation ( 201cgroup 201d )  formerly known as tenneco packaging inc. wholly owned subsidiary of tenneco , inc.
 group operated prior to april 12 , 1999 as division of pactiv not separate stand-alone entity.
 from formation january 1999 through closing of acquisition on april 12 , 1999 pca did not have significant operations.
 april 12 , 1999 acquisition accounted for using historical values for contributed assets.
 purchase accounting not applied because under applicable accounting guidance change of control deemed not to have occurred result of participating veto rights held by pactiv after closing of transactions under terms stockholders agreement entered connection with transactions.
results operations year ended december 31 , 2004 compared to december 31  2003 historical results operations pca for years ended december , 31 2004 2003 set forth below : year ended december 31 , ( in millions ) 2004 2003 change.

( in millions )                        | 2004           | 2003             | change
-------------------------------------- | -------------- | ---------------- | --------------
net sales                              | $ 1890.1       | $ 1735.5         | $ 154.6
income before interest and taxes       | $ 140.5        | $ 96.9           | $ 43.6
interest expense net                   | -29.6 ( 29.6 ) | -121.8 ( 121.8 ) | 92.2
income ( loss ) before taxes           | 110.9          | -24.9 ( 24.9 )   | 135.8
( provision ) benefit for income taxes | -42.2 ( 42.2 ) | 10.5             | -52.7 ( 52.7 )
net income ( loss )                    | $ 68.7         | $ -14.4 ( 14.4 ) | $ 83.1


basel iii full implementation ) citigroup 2019s capital resources citi estimates effective minimum common equity tier 1 capital  tier 1 capital total capital ratio requirements under u.
 basel iii rules fully implemented basis assuming 3% ( 3 % ) gsib surcharge  may be 10% ( 10 % ) , 11. 5% ( 11. 5 % ) 13. 5% ( 13. 5 % )  respectively.
 under.
 basel iii rules citi must comply with 4% ( 4 % ) minimum tier 1 leverage ratio requirement effective 5% ( 5 % ) minimum supplementary leverage ratio requirement.
 tables set capital tiers  total risk-weighted assets risk-based capital ratios quarterly adjusted average total assets total leverage exposure leverage ratios full implementation under u.
 basel iii rules for citi as of december 31 , 2015 december 31 , 2014.
 citigroup capital components ratios under basel iii full implementation ) december 31 , 2015 31  2014 in millions of dollars  except ratios advanced approaches standardized approach.
 common equity tier 1 capital ratio 3 ) ) 12. 07% ( 12. 07 % ) 12. 63% ( 12. 63 % ) 10. 57% ( 10. 57 % ) 11. 12% ( 11. 12 % ) tier 1 capital ratio 3 ) ) 13. 49 14. 11 11. 45 12. 05 total capital ratio ) 15. 30 17. 08 12. 80 14. 52 in millions of dollars  except ratios december 31 , 2015 31, 2014 quarterly adjusted average total assets 5 ) $ 1724710 $ 1835637 total leverage exposure 6 ) 2317849 2492636 tier 1 leverage ratio 9. 51% ( 9. 51 % ) 8. 07% ( 8. 07 % ) supplementary leverage ratio 4 ) 7. 08 5.94 ( 1 ) restated reflect retrospective adoption of asu 2014-01 for lihtc investments consistent with current period presentation.
 ( 2 ) under advanced approaches framework eligible credit reserves exceed expected credit losses eligible for inclusion in tier 2 capital excess reserves not exceed 0. 6% (. ) of credit risk-weighted assets differs from standardized approach allowance for credit losses eligible for inclusion tier 2 capital up to 1. 25% (. ) of credit risk-weighted assets excess allowance for credit losses deducted in credit risk-weighted assets.
 ( 3 ) as of december 31 , 2015 and december 31 , 2014 , citi 2019s common equity tier 1 capital , tier 1 capital  total capital ratios lower derived under basel iii advanced approaches framework.
 ( 4 ) citi 2019s basel iii capital ratios related components non-gaap financial measures.
 citi believes ratios related components provide useful information to investors measuring citi 2019s progress against future regulatory capital standards.
 ( 5 ) tier 1 leverage ratio denominator.
 ( 6 ) supplementary leverage ratio denominator.

in millions of dollars except ratios                    | december 31 2015 advanced approaches | december 31 2015 standardized approach | december 31 2015 advanced approaches | standardized approach
------------------------------------------------------- | ------------------------------------ | -------------------------------------- | ------------------------------------ | ---------------------
common equity tier 1 capital                            | $ 146865                             | $ 146865                               | $ 136597                             | $ 136597
tier 1 capital                                          | 164036                               | 164036                                 | 148066                               | 148066
total capital ( tier 1 capital + tier 2 capital ) ( 2 ) | 186097                               | 198655                                 | 165454                               | 178413
total risk-weighted assets                              | 1216277                              | 1162884                                | 1292605                              | 1228488
common equity tier 1 capital ratio ( 3 ) ( 4 )          | 12.07% ( 12.07 % )                   | 12.63% ( 12.63 % )                     | 10.57% ( 10.57 % )                   | 11.12% ( 11.12 % )
tier 1 capital ratio ( 3 ) ( 4 )                        | 13.49                                | 14.11                                  | 11.45                                | 12.05
total capital ratio ( 3 ) ( 4 )                         | 15.30                                | 17.08                                  | 12.80                                | 14.52


related employer payroll tax costs ).
 contributions due by march 15 of calendar year following year company realizes benefits of deductions.
 this arrangement accounted for as contingent consideration.
 pre-2009 business combinations accounted for under former accounting standard precluded recognition of certain contingent consideration as of business combination date.
 instead under former accounting standard  contingent consideration is accounted for as additional purchase price ( goodwill ) at time contingency resolved.
 as of december 31 , 2013  company accrued $ 20. 9 million related to this arrangement within other current liabilities as company realized tax benefit of compensation deductions during 2013 tax year.
 company made related cash contribution during first quarter of 2014.
 11.
 earnings per share numerator for basic and diluted earnings per share is net income.
 denominator for basic earnings per share is weighted-average number of common shares outstanding during period.
 2013 denominator impacted by common shares issued during ipo and underwriters' exercise in overallotment option granted to in connection with ipo.
 such common shares issued on july 2 , 2013 and july 31, 2013  only partially reflected in 2013 denominator.
 such shares fully reflected in 2014 denominator.
 see note 9 for additional discussion of ipo.
 dilutive effect of outstanding restricted stock , restricted stock units , stock options , coworker stock purchase plan units and mpk plan units reflected in denominator for diluted earnings per share using treasury stock method.
 reconciliation of basic shares to diluted shares:.
 insignificant amount of potential common shares excluded from diluted earnings per share for years ended december 31 , 2014 , 2013 and 2012  as their inclusion would have had anti-dilutive effect.
 12.
deferred compensation plan on march 10 , 2010 , connection with company 2019s purchase of $ 28. 5 million principal amount of outstanding senior subordinated debt  company established restricted debt unit plan ( 201crdu plan 201d ) , unfunded nonqualified deferred compensation plan.
 total number of rdus granted under rdu plan was 28500.
 as of december 31 , 2014 , 28500 rdus outstanding.
 rdus vested daily on pro rata basis over three-year period from january 1, 2012 ( or later date of hire or date subsequent rdu grant ) through december 31 , 2014.
 all outstanding rdus vested as of december 31 , 2014.
 participants have no rights to underlying debt.
 total amount of compensation available to be paid under rdu plan initially based on two components , principal component and interest component.
 principal component credits rdu plan with notional amount equal to $ 28. 5 million face value of senior subordinated notes ( "debt pool" ), with certain redemption premium equivalents noted below.
 interest component credited rdu plan with amounts equal to interest earned on debt pool from march 10 , 2010 through maturity on october 12 , 2017  except.
 interest amounts for 2010 and 2011 deferred until 2012  interest amounts paid to participants semi-annually on interest payment due dates.
 company used portion of ipo proceeds with incremental borrowings to redeem $ 324. 0 million of total senior subordinated notes outstanding on august 1 , 2013.
 in connection with ipo and partial redemption of senior subordinated notes  company amended rdu plan to increase retentive value of plan.
 accordance with original terms rdu plan principal component of rdus converted to cash-denominated pool upon redemption of senior subordinated notes.
company added $ 0. 1 table of contents cdw corporation subsidiaries notes to consolidated financial statements

( in millions )                   | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012
--------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
weighted-average shares - basic   | 170.6                          | 156.6                          | 145.1
effect of dilutive securities     | 2.2                            | 2.1                            | 0.7
weighted-average shares - diluted | 172.8                          | 158.7                          | 145.8


is&gs 2019 operating profit decreased $ 60 million 8% ( 8 % )  for 2014 compared to 2013.
 decrease attributable to activities for sales  lower risk retirements reserves on international program partially offset by severance recoveries related to restructuring in november 2013 approximately $ 20 million for 2014.
 adjustments not related to volume including net profit booking rate adjustments approximately $ 30 million lower for 2014 compared to 2013.
 2013 2012 is&gs 2019 net sales decreased $ 479 million 5% ( 5 % ) for 2013 compared to 2012.
 decrease attributable to lower net sales of $ 495 million due to decreased volume on various programs ( command and control programs for classified customers ngi eram programs ) $ 320 million due to completion of certain programs ( total information processing support services transportation worker identification credential outsourcing desktop initiative for nasa ).
 decrease partially offset by higher net sales of $ 340 million due to start-up of certain programs ( disa gsm-o national science foundation antarctic support ).
 is&gs 2019 operating profit decreased $ 49 million 6% ( 6 % ) for 2013 compared to 2012.
 decrease attributable to lower operating profit of $ 55 million due to certain programs nearing end of life cycles partially offset by higher operating profit of $ 15 million due to start-up of certain programs.
 adjustments not related to volume including net profit booking rate adjustments other matters comparable for 2013 compared to 2012.
 backlog increased in 2014 2013 primarily due to multi-year international awards.
 multi-year extensions.
 increase partially offset by declining activities on direct warfighter support command and control programs impacted by defense budget reductions.
backlog decreased in 2013 compared to 2012 due to lower orders on programs ( eram and ngi ) higher sales on certain programs ( national science foundation antarctic support disa gsm-o ) declining activities on smaller programs due to continued downturn in federal information technology budgets.
 expect is&gs 2019 net sales to decline 2015 low to mid single digit percentage range compared to 2014 driven by downturn federal information technology budgets increasingly competitive environment disaggregation of existing contracts new contract award delays offset by increased sales from acquisitions year.
 operating profit expected to decline low double digit percentage range 2015 driven by volume increase in intangible amortization from 2014 acquisition activity 2015 margins lower than 2014 results.
 missiles and fire control mfc business segment provides air and missile defense systems ; tactical missiles air-to-ground precision strike weapon systems ; logistics technical services ; fire control systems mission operations support  readiness  engineering support integration services manned and unmanned ground vehicles.
 mfc 2019s major programs include pac-3 , thaad  multiple launch rocket system , hellfire , jassm , javelin , apache  sniper ae  low altitude navigation targeting infrared for night ( lantirn ae ) sof clss.
 mfc 2019s operating results included ( in millions ) :.
 2014 compared to 2013 mfc 2019s net sales 2014 decreased $ 77 million  or 1% ( 1 % )  compared to 2013.
 decrease attributable to lower net sales of approximately $ 385 million for technical services programs due to decreased volume market pressures $ 115 million for tactical missile programs due to fewer deliveries primarily high mobility artillery

| 2014             | 2013             | 2012
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 7680           | $ 7757           | $ 7457
operating profit    | 1358             | 1431             | 1256
operating margins   | 17.7% ( 17.7 % ) | 18.4% ( 18.4 % ) | 16.8% ( 16.8 % )
backlog at year-end | $ 13600          | $ 15000          | $ 14700


anticipated possible short-term cash needs , prevailing interest rates investment policy alternative investment choices.
 majority of our cash and cash equivalents balance invested in money market mutual funds invest only in u.
 treasury securities or.
 government agency securities.
 exposure to risk minimal given nature of investments.
 practice is to have pension plan 100% ( ) funded at each year end on projected benefit obligation basis satisfying minimum required contribution and obtaining maximum tax deduction.
 based actuarial projections estimate $ 14. 1 million contribution in 2011 will to meet funding goal.
 actual contribution contingent on actual rate of return on plan assets during 2011 and december 31 , 2011 discount rate.
 net current deferred tax assets of $ 18. 3 million and $ 23. 8 million included in other current assets at december 31 , 2010 and 2009 ,.
 total net current deferred tax assets include unrealized losses , stock- based compensation accrued expenses.
 net long-term deferred tax liabilities were $ 7. 8 billion and $ 7. 6 billion at december 31 , 2010 and 2009 .
 net deferred tax liabilities principally result of purchase accounting for intangible assets in various mergers including cbot holdings and nymex holdings.
 long-term deferred tax asset of $ 145. 7 million included within domestic long-term deferred tax liability.
 this deferred tax asset is for unrealized capital loss incurred in brazil related to investment in bm&fbovespa.
 as of december 31 , 2010  not believe meet more-likely-than-not threshold to fully realize value of unrealized capital loss.
 partial valuation allowance of $ 64.4 million provided for unrealized capital loss exceeds potential capital gains used to offset capital loss in future periods.
 also have long-term deferred tax asset related to brazilian taxes of $ 125. 3 million for unrealized capital loss incurred in brazil related to investment in bm&fbovespa.
 full valuation allowance of $ 125. 3 million provided because not believe meet more-likely-than-not threshold to realize value of unrealized capital loss in brazil in future.
 valuation allowances of $ 49. 4 million provided for additional unrealized capital losses on other investments.
 net long-term deferred tax assets include $ 19. 3 million deferred tax asset for foreign net operating losses related to swapstream.
 assessment at december 31, 2010 was did not currently meet more-likely- than-not threshold to realize value of acquired and accumulated foreign net operating losses in future.
 $ 19. 3 million deferred tax assets from these net operating losses fully reserved.
 each clearing firm required to deposit and maintain specified performance bond collateral.
 performance bond requirements determined by parameters established by risk management department of clearing house may fluctuate over time.
 accept variety of collateral to satisfy performance bond requirements.
 cash performance bonds and guaranty fund contributions included in consolidated balance sheets.
 clearing firm deposits other than retained in form of cash , not included in consolidated balance sheets.
 balances in cash performance bonds and guaranty fund contributions may fluctuate significantly over time.
 cash performance bonds and guaranty fund contributions consisted of following at december 31:.

( in millions )                     | 2010     | 2009
----------------------------------- | -------- | --------
cash performance bonds              | $ 3717.0 | $ 5834.6
cash guaranty fund contributions    | 231.8    | 102.6
cross-margin arrangements           | 79.7     | 10.6
performance collateral for delivery | 10.0     | 34.1
total                               | $ 4038.5 | $ 5981.9


table reports significant movements in shareholders 2019 equity for year ended december 31 , 2010.
 total shareholders 2019 equity increased $ 3. 3 billion in 2010  primarily due to net income of $ 3. 1 billion and change in net unrealized appreciation on investments of $ 742 million.
 short-term debt at december 31 , 2010 connection with financing of rain and hail acquisition  short-term debt includes reverse repurchase agreements totaling $ 1 billion.
 $ 300 million in borrowings against ace 2019s revolving credit facility outstanding at december 31 , 2010.
 at december 31, 2009 short-term debt consisted of five-year term loan repaid in december 2010.
 long-term debt total long-term debt increased by $ 200 million year to $ 3. 4 billion described in detail in note 9 to consolidated financial statements under item 8.
 in november 2010  ace ina issued $ 700 million of 2. 6 percent senior notes due november 2015.
 senior unsecured notes guaranteed on senior basis by company rank equally with all company 2019s other senior obligations.
 in april 2008  financing of combined insurance acquisition  ace ina entered into $ 450 million float- ing interest rate syndicated term loan agreement due april 2013.
 company entered into swap transaction fixing interest rate for term of loan.
 in december 2010 ace repaid loan and exited swap.
 in december 2008  ace ina entered into $ 66 million dual tranche floating interest rate term loan agreement.
 first tranche $ 50 million three-year term loan due december 2011 floating interest rate.
 company entered into swap transaction effect fixing interest rate for term of loan.
 in december 2010 ace repaid this loan and exited swap.
second tranche , a $ 16 million nine-month term loan  due and repaid in september 2009.
 trust preferred securities securities outstanding consist of $ 300 million trust preferred securities due 2030 , issued by special purpose entity ( trust ) wholly owned by us.
 sole assets of special purpose entity are debt instruments issued by one or more our subsidiaries.
 special purpose entity looks to payments on debt instruments to make payments on preferred securities.
 we guaranteed payments on debt instruments.
 trustees of trust include one or more our officers and one independent trustee , trust company.
 our officers serving as trustees trust do not receive compensation or other remuneration for services capacity.
 full $ 309 million of outstanding trust preferred securities ( calculated as $ 300 million discussed plus our equity share of trust ) shown on our con- solidated balance sheet as a liability.
 additional information trust preferred securities in note 9 d ) to consolidated financial statements , under item 8.
 common shares common shares had par value of chf 30. 57 each at december 31 , 2010.
 annual general meeting held in may 2010  company 2019s shareholders approved par value reduction in aggregate swiss franc amount  formula  equal to $ 1. 32 per share , refer to as base annual divi- dend.
 base annual dividend payable in four installments  each swiss franc installments be

( in millions of u.s . dollars )                                                 | 2010
-------------------------------------------------------------------------------- | ------------
balance beginning of year                                                        | $ 19667
net income                                                                       | 3108
dividends declared on common shares                                              | -443 ( 443 )
change in net unrealized appreciation ( depreciation ) on investments net of tax | 742
repurchase of shares                                                             | -303 ( 303 )
other movements net of tax                                                       | 203
balance end of year                                                              | $ 22974


valuation table shows expected versus actual rate of return on plan assets for u. s.
 pension and postretirement plans:.
 for foreign plans pension expense for 2008 reduced by expected return $ 487 million compared with actual return $ ( 883 ) million.
 pension expense for 2007 and 2006 reduced by expected returns of $ 477 million and $ 384 million.
 actual returns higher in 2007 and 2006 than expected returns.
 discount rate 2008 and 2007 discount rates for.
 pension and postretirement plans selected by citigroup-specific analysis using each plan 2019s specific cash flows compared with 2019s long-term corporate bond yield for.
 citigroup 2019s policy is to round to nearest tenth of percent.
 at december 31 , 2008 discount rate set at 6. 1% ( 6. 1 % ) for pension plans and 6. 0% ( 6. 0 % ) for postretirement welfare plans.
 at december 31 , 2007 discount rate set at 6. 2% ( 6. 2 % ) for pension plans 6. 0% ( 6. 0 % ) for postretirement plans citigroup-specific cash flow analysis.
 as of september 30 , 2006 u.
 pension plan remeasured to reflect freeze of benefits accruals for all non-grandfathered participants effective january 1 , 2008.
 under september 30 , 2006 remeasurement year-end analysis resulting plan-specific discount rate for pension plan was 5. 86% ( 5. 86 % )  rounded to 5. 9% ( 5. 9 % ).
 discount rates for foreign pension and postretirement plans selected by reference to high-quality corporate bond rates in countries developed corporate bond markets.
 where developed corporate bond markets not exist discount rates selected by reference to local government bond rates with premium added to reflect additional risk for corporate bonds.
additional information on pension postretirement plans  discount rates in determining pension postretirement benefit obligations net benefit expense for company 2019s plans effects of one percentage-point change in expected rates of return discount rates , see note 9 to company 2019s consolidated financial statements on page 144.
 adoption of sfas 158 adoption sfas no.
 158  employer 2019s accounting for defined benefit pensions other postretirement benefits ( sfas 158 )  at december 31 , 2006  company recorded after-tax charge to equity of $ 1. 6 billion  corresponds to plans 2019 net pension postretirement liabilities write-off of existing prepaid asset  relates to unamortized actuarial gains losses  prior service costs/benefits transition assets/liabilities.
 for discussion of fair value of assets liabilities , see 201csignificant accounting policies significant estimates 201d on page 18 notes 26 , 27 28 to consolidated financial statements on pages 192 , 202 207.

| 2008              | 2007             | 2006
----------------------- | ----------------- | ---------------- | ----------------
expected rate of return | 7.75% ( 7.75 % )  | 8.0% ( 8.0 % )   | 8.0% ( 8.0 % )
actual rate of return   | ( 5.42 ) % (  % ) | 13.2% ( 13.2 % ) | 14.7% ( 14.7 % )


consolidated financial statements 161 fifth third bancorp december 31 , 2012 ( $ in millions ) significant unobservable ranges financial instrument fair value valuation technique inputs weighted-average commercial loans for sale $ 9 appraised value nm nm cost to sell nm 10. 0% ( 10. 0 % ) commercial industrial loans 83 appraised value default rates 100% ( 100 % ) nm collateral value commercial mortgage loans 46 value default rates 100% ( 100 % ) collateral value commercial construction loans 4 value default rates 100% ( 100 % ) nm collateral value msrs 697 discounted cash flow prepayment speed 0 - 100% ( 100 % ) ( fixed ) 16. 1% ( 16. 1 % ) ( adjustable ) 26. 9% ( 26. 9 % ) discount rates 9. 4 - 18. 0% ( 18. 0 % ) ( fixed ) 10. 5% ( 10. 5 % ) ( adjustable ) 11. 7% ( 11. 7 % ).
 commercial loans held for sale during 2013 and 2012 bancorp transferred $ 5 million and $ 16 million  commercial loans portfolio to loans for sale transfer measured at fair value using significant unobservable inputs.
 loans had fair value adjustments in 2013 and 2012 totaling $ 4 million and $ 1 million based on appraisals underlying collateral classified within level 3 valuation hierarchy.
 during 2013 and 2012 fair value adjustments on existing commercial loans for sale of $ 3 million and $ 12 million.
 fair value adjustments based on appraisals underlying collateral classified within level 3 valuation hierarchy.
 adverse change in fair value underlying collateral in decrease in fair value measurement.
 accounting department determines procedures for valuation of commercial hfs loans comparison to recently executed transactions similar type loans.
monthly review of portfolio performed for reasonableness.
 quarterly  appraisals approaching a year old updated real estate valuation group  reports to chief risk and credit officer , with commercial line of business review third party appraisals for reasonableness.
 commercial line of business finance department  reports to bancorp chief financial officer , with accounting review all loan appraisal values , carrying values vintages.
 commercial loans held for investment during 2013 and 2012  bancorp recorded nonrecurring impairment adjustments to certain commercial industrial , commercial mortgage commercial construction loans for investment.
 larger commercial loans within aggregate borrower relationship balances exceeding $ 1 million exhibit probable or observed credit weaknesses subject to individual review for impairment.
 bancorp considers current value of collateral  credit quality of guarantees  guarantor 2019s liquidity willingness to cooperate  loan structure other factors when evaluating individual loan impaired.
 when loan collateral dependent , fair value of loan generally based on fair value of underlying collateral supporting loan these loans classified within level 3 of valuation hierarchy.
 in cases where carrying value exceeds fair value , impairment loss recognized.
 adverse change in fair value of underlying collateral result in decrease in fair value measurement.
 fair values and recognized impairment losses reflected in previous table.
 commercial credit risk , reports to chief risk and credit officer  responsible for preparing and reviewing fair value estimates for commercial loans held for investment.
 mortgage interest rates increased during year ended december 31 , 2013 bancorp recognized recovery of temporary impairment on servicing rights.
 bancorp recognized temporary impairments in certain classes of msr portfolio during year ended december 31 , 2012 carrying value adjusted to fair value.
msrs do not trade in active open market with observable prices.
 while sales msrs do occur, precise terms and conditions typically not readily available.
 bancorp estimates fair value of msrs using internal discounted cash flow models with unobservable inputs primarily prepayment speed assumptions , discount rates weighted average lives resulting in classification within level 3 of valuation hierarchy.
 refer to note 11 for further information on assumptions used in valuation of bancorp 2019s msrs.
 secondary marketing department and treasury department responsible for determining valuation methodology for msrs.
 representatives from secondary marketing , treasury  accounting and risk management responsible for reviewing key assumptions in internal discounted cash flow model.
 two external valuations of msr portfolio obtained from third parties use valuation models to assess reasonableness of internal discounted cash flow model.
 bancorp participates in peer surveys additional confirmation of reasonableness of key assumptions in msr valuation process and resulting msr prices.
 during 2013 and 2012  bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as oreo measured at lower of carrying amount or fair value.
 these nonrecurring losses primarily due to declines in real estate values of properties recorded in oreo.
 for years ended december 31 , 2013 and 2012  losses include $ 19 million and $ 17 million  recorded as charge-offs  on new oreo properties transferred from loans periods and $ 26 million and $ 57 million  recorded as negative fair value adjustments on oreo in other noninterest income subsequent to transfer from loans.
 fair value amounts generally based on appraisals of property values

financial instrument            | fair value | valuation technique  | significant unobservableinputs | ranges ofinputs                | weighted-average
------------------------------- | ---------- | -------------------- | ------------------------------ | ------------------------------ | ---------------------------------------------------------------------------------------------------------------------
commercial loans held for sale  | $ 9        | appraised value      | appraised valuecost to sell    | nmnm                           | nm10.0% ( nm10.0 % )
commercial and industrial loans | 83         | appraised value      | default ratescollateral value  | 100%nm                         | nmnm
commercial mortgage loans       | 46         | appraised value      | default ratescollateral value  | 100%nm                         | nmnm
commercial construction loans   | 4          | appraised value      | default ratescollateral value  | 100%nm                         | nmnm
msrs                            | 697        | discounted cash flow | prepayment speeddiscount rates | 0 - 100%9.4 - 18.0% ( 18.0 % ) | ( fixed ) 16.1% ( 16.1 % ) ( adjustable ) 26.9% ( 26.9 % ) ( fixed ) 10.5% ( 10.5 % ) ( adjustable ) 11.7% ( 11.7 % )
oreo                            | 165        | appraised value      | appraised value                | nm                             | nm


class a ordinary shares of aon plc are eligible for deposit and clearing within dtc system.
 in connection with closing merger  we entered into arrangements with dtc agreed to indemnify dtc for any stamp duty and/or sdrt assessed upon it result of its service as depository and clearing agency for our class a ordinary shares.
 obtained a ruling from hmrc in of stamp duty and sdrt consequences of reorganization  sdrt paid in accordance with terms of this ruling in of deposit of class a ordinary shares with initial depository.
 dtc will discretion to cease to act as depository and clearing agency for class a ordinary shares.
 if dtc determines class a ordinary shares not eligible for continued deposit and clearance within its facilities believe class a ordinary shares not be eligible for continued listing on u. s.
 securities exchange or inclusion in s&p 500 and trading in class a ordinary shares would be disrupted.
 pursue alternative arrangements to preserve listing and maintain trading disruption could have material adverse effect on trading price of class a ordinary shares.
 item 1b.
 unresolved staff comments.
 item 2.
 properties.
 we have offices in various locations throughout world.
 substantially all offices are located in leased premises.
 maintain corporate headquarters at 8 devonshire square , london , england  occupy approximately 225000 square feet of space under operating lease agreement that expires in 2018.
 own one building at pallbergweg 2-4 , amsterdam , netherlands ( 150000 square feet ).
 following additional significant leased properties  with occupied square footage and expiration.
 property : occupied square footage expiration.
locations in lincolnshire , illinois , woodlands , texas , gurgaon , india  orlando , florida charlotte , north carolina  acquired as part of hewitt acquisition in 2010  primarily dedicated to our hr solutions segment.
 other locations listed above house personnel from both reportable segments.
 in november 2011  aon entered agreement to lease 190000 square feet in new building constructed in london , united kingdom.
 agreement contingent upon completion of building construction.
 aon expects to move into new building in 2015 exercises early break option at devonshire square location.
 in september 2013 aon agreement to lease up to 479000 square feet in new building constructed in gurgaon , india.
 agreement contingent upon completion of building construction.
 aon expects to move into new building in phases during 2014 and 2015 upon expiration of existing leases at gurgaon locations.
 no difficulty anticipated in negotiating renewals as leases expire or finding other satisfactory space if premises become unavailable.
 believe facilities we currently occupy are adequate for purposes for used well maintained.
 in certain circumstances may have unused space may seek to sublet space to third parties depending upon demands for office space in locations involved.
 see note 9 "lease commitments" of notes to consolidated financial statements in part ii , item 8 of report for information respect to lease commitments as of december 31 , 2013.
 item 3.
 legal proceedings.
 incorporate by reference note 16 "commitments and contingencies" of notes to consolidated financial statements in part ii , item 8 of report.

property:                                                  | occupiedsquare footage | leaseexpiration dates
---------------------------------------------------------- | ---------------------- | ---------------------
4 overlook point and other locations lincolnshire illinois | 1224000                | 2017 2013 2024
2601 research forest drive the woodlands texas             | 414000                 | 2020
dlf city and unitech cyber park gurgaon india              | 413000                 | 2014 2013 2015
200 e . randolph street chicago illinois                   | 396000                 | 2028
2300 discovery drive orlando florida                       | 364000                 | 2020
199 water street new york new york                         | 319000                 | 2018
7201 hewitt associates drive charlotte north carolina      | 218000                 | 2015


long-term product offerings include active and index strategies.
 active strategies seek to earn attractive returns in excess market benchmark or performance hurdle while maintaining appropriate risk profile.
 offer two types of active strategies : rely primarily on fundamental research and utilize quantitative models portfolio construction.
 contrast index strategies track returns of corresponding index by investing in same underlying securities within index or subset securities similar risk and return profile index.
 index strategies include non-etf index products and ishares etfs.
 many clients use both active and index strategies application strategies may differ.
 for clients may use index products to gain exposure to market or asset class or may use combination of index strategies to target active returns.
 institutional non-etf index assignments be large ( multi-billion dollars ) reflect low fee rates.
 potential to exaggerate significance of net flows in institutional index products on blackrock 2019s revenues earnings.
 equity year-end 2016 equity aum totaled $ 2. 657 trillion  reflecting net inflows of $ 51. 4 billion.
 net inflows included $ 74. 9 billion into ishares  driven by net inflows into core ranges broad developed and emerging market equities.
 ishares net inflows partially offset by active and non-etf index net outflows of $ 20. 2 billion and $ 3. 3 billion  respectively.
 blackrock 2019s effective fee rates fluctuate due to changes in aum mix.
 approximately half of blackrock 2019s equity aum tied to international markets  including emerging markets  have higher fee rates than.
 equity strategies.
 fluctuations in international equity markets  may not consistently move in tandem with u. s.
markets impact on blackrock 2019s equity fee rates revenues.
 fixed income aum ended 2016 at $ 1. 572 trillion reflecting net inflows of $ 120. 0 billion.
 2016 active net inflows of $ 16. 6 billion diversified across fixed income offerings included strong inflows from insurance clients.
 fixed income ishares net inflows of $ 59. 9 billion led by flows core ranges emerging market high yield corporate bond funds.
 non-etf index net inflows of $ 43. 4 billion driven by demand for liability-driven investment solutions.
 multi-asset blackrock 2019s multi-asset team manages balanced funds bespoke mandates for diversified client base leverages investment expertise in global equities bonds currencies commodities extensive risk management capabilities.
 investment solutions include long-only portfolios alternative investments tactical asset allocation overlays.
 component changes in multi-asset aum for 2016 presented below.
 in millions ) december 31 net inflows outflows ) market change impact december 31.
 futureadvisor amount not include aum held in ishares holdings.
 multi-asset net inflows reflected institutional demand for solutions-based advice $ 13. 2 billion net inflows from institutional clients.
 defined contribution plans of institutional clients significant driver of flows contributed $ 11. 3 billion to institutional multi-asset net inflows in 2016 primarily into target date target risk product offerings.
 retail net outflows of $ 9. 4 billion primarily due to outflows from world allocation strategies.
 company 2019s multi-asset strategies include 2022 asset allocation balanced products represented 45% ( 45 % ) of multi-asset aum at year-end.
strategies combine equity  fixed income alternative components for investors seeking tailored solution relative to specific benchmark within risk budget.
 strategies minimize downside risk through diversification derivatives strategies tactical asset allocation decisions.
 flagship products include global allocation multi-asset income fund families.
 2022 target date target risk products grew 11% ( 11 % ) organically in 2016  with net inflows of $ 13. 5 billion.
 institutional investors represented 94% ( 94 % ) of target date target risk aum defined contribution plans for 88% ( 88 % ) of aum.
 flows driven by defined contribution investments in lifepath lifepath retirement income ae offerings.
 lifepath products utilize proprietary asset allocation model balance risk return over investment horizon based on investor 2019s expected retirement timing.
 2022 fiduciary management services are complex mandates in pension plan sponsors endowments foundations retain blackrock to assume responsibility for aspects plan management.
 customized services require strong partnership with clients 2019 investment staff trustees to tailor investment strategies to meet client-specific risk budgets return objectives.

( in millions )               | december 312015 | net inflows ( outflows ) | marketchange | fx impact        | december 312016
----------------------------- | --------------- | ------------------------ | ------------ | ---------------- | ---------------
asset allocation and balanced | $ 185836        | $ -10332 ( 10332 )       | $ 6705       | $ -5534 ( 5534 ) | $ 176675
target date/risk              | 125664          | 13500                    | 10189        | 79               | 149432
fiduciary                     | 64433           | 998                      | 5585         | -2621 ( 2621 )   | 68395
futureadvisor ( 1 )           | 403             | 61                       | 41           | 2014             | 505
total                         | $ 376336        | $ 4227                   | $ 22520      | $ -8076 ( 8076 ) | $ 395007


table of contents 17.
 unconditional purchase obligations company entered into unconditional purchase obligations primarily include software licenses long- term purchase contracts for network  communication office maintenance services.
 company expended $ 7. 2 million , $ 5. 3 million $ 2. 9 million related to unconditional purchase obligations existed as of beginning of each year for years ended december 31 , 2016 , 2015 2014 .
 future expenditures under unconditional purchase obligations effect as of december 31 , 2016 are as follows : ( in thousands ).
 18.
 restructuring during fourth quarter of 2016  company initiated workforce realignment activities.
 company incurred $ 3. 4 million in restructuring charges  or $ 2. 4 million net of tax  during year ended december 31 , 2016.
 company expects to incur additional charges of $ 10 million - $ 15 million  or $ 7 million - $ 10 million net of tax , primarily during first quarter of 2017.
 19.
 employment-related settlement on february 15 , 2017  company entered into employment-related settlement agreement.
 settlement company make lump-sum payment of $ 4. 7 million.
 charges related to agreement included in selling  general administrative expense in 2016 consolidated statement of income.
 settlement agreement all claims initiated against company withdrawn general release of all claims in favor of company related entities executed.
 20.
 contingencies and commitments company subject to investigations  claims legal proceedings in ordinary course of business including commercial disputes  labor employment matters  tax audits  alleged infringement of intellectual property rights other matters.
 company resolution of pending matters not expected to have material adverse effect on company's consolidated results of operations  cash flows or financial position.
, each of these matters subject to uncertainties possible unfavorable resolution of or proceedings could affect company's results of operations , cash flows or financial position.
 indian subsidiary of company has service tax audits pending resulted in formal inquiries received on transactions through mid-2012.
 company could incur tax charges and related liabilities , including related to service tax audit case , of approximately $ 7 million.
 service tax issues raised in company 2019s notices and inquiries similar to case , m/s microsoft corporation ( i ) ( p ) ltd.
 vs commissioner of service tax , new delhi , delhi customs , excise and service tax appellate tribunal ( cestat ) passed favorable ruling to microsoft.
 company can provide no assurances on whether microsoft case 2019s favorable ruling will be challenged in higher courts or on impact present microsoft case 2019s decision on company 2019s cases.
 company uncertain to when these service tax matters will be concluded.
 french subsidiary of company received notice french taxing authority rejected company's 2012 research and development credit.
 company contested the decision.
 if company not receive favorable outcome , it could incur charges of approximately $ 0. 8 million.
 in unfavorable outcome could result in authorities reviewing or rejecting $ 3. 8 million of similar research and development credits for 2013 through current year currently reflected as asset.
 company can provide no assurances on timing or outcome of this matter.

2017  | $ 14134
----- | -------
2018  | 10288
2019  | 9724
2020  | 2617
2021  | 652
total | $ 37415


utilized.
 in accordance with sfas no.
 144  accounting for impairment or disposal of long-lived assets non-cash impairment charge of $ 4. 1 million recorded in second quarter of fiscal 2008 for excess machinery.
 charge included as separate line item in company 2019s consolidated statement of operations.
 no change to useful lives and depreciation expense of remaining assets estimates reflective of period assets used in operations.
.
 warranties company provides one-year warranty on sequencing genotyping gene expression systems.
 revenue recognized company establishes accrual for estimated warranty expenses with system sales.
 expense recorded as component of cost of product revenue.
 estimated warranty expenses with extended maintenance contracts recorded as cost of revenue over term of maintenance contract.
 changes in company 2019s reserve for product warranties from january 1, 2006 through december 28 , 2008 are as ( in thousands ) :.
 8.
 convertible senior notes on february 16 , 2007 company issued $ 400. 0 million principal amount of 0. 625% ( 0. 625 % ) convertible senior notes due 2014 notes included initial purchasers 2019 option to purchase to additional $ 50. 0 million aggregate principal amount of notes.
 net proceeds from offering after deducting initial purchasers 2019 discount and offering expenses were $ 390. 3 million.
 company will pay 0. 625% ( 0. 625 % ) interest per annum on principal amount of notes payable semi-annually in arrears in cash on february 15 and august 15 of each year.
 company made interest payments of $ 1. 3 million and $ 1. 2 million on february 15 , 2008 and august 15 , 2008 .
notes mature february 15 , notes convertible into cash  if applicable  shares of company 2019s common stock , $ 0. 01 par value per share  based on conversion rate subject to adjustment of 45. 8058 shares per $ 1000 principal amount of notes ( represents conversion price $ 21. 83 per share ) only in following circumstances extent : ( 1 ) during five business-day period after five consecutive trading period ( measurement period ) trading price per note for each day measurement period less than 97% ( 97 % ) of product last reported sale price company 2019s common stock and conversion rate each day ; ( 2 ) during any calendar quarter after calendar quarter ending march 30 , 2007  if last reported sale price of company 2019s common stock for 20 or more trading days in period 30 consecutive trading days ending last trading day of immediately illumina , inc.
 notes to consolidated financial statements 2014 ( continued )

balance as of january 1 2006         | $ 751
------------------------------------ | --------------
additions charged to cost of revenue | 1379
repairs and replacements             | -1134 ( 1134 )
balance as of december 31 2006       | 996
additions charged to cost of revenue | 4939
repairs and replacements             | -2219 ( 2219 )
balance as of december 30 2007       | 3716
additions charged to cost of revenue | 13044
repairs and replacements             | -8557 ( 8557 )
balance as of december 28 2008       | $ 8203


graph below compares expeditors international of washington , inc. 's cumulative 5-year total shareholder return on common stock with the cumulative total returns of the s&p 500 index , the nasdaq transportation index , and the nasdaq industrial transportation index ( nqusb2770t ) as a replacement for nasdaq transportation index.
 the company is making modification to reference a specific transportation index and to source that data directly from nasdaq.
 graph assumes that value of the investment in our common stock and in each of the indexes ( including reinvestment of dividends ) was $ 100 on 12/31/2012 and tracks it through 12/31/2017.
 total return assumes reinvestment of dividends in each of indices indicated.
 comparison of 5-year cumulative total return among expeditors international of washington , inc. , the s&p 500 index , the nasdaq industrial transportation index and the nasdaq transportation index.
 stock price performance included in this graph is not necessarily indicative of future stock price performance.
 item 6 2014 selected financial data financial highlights in thousands , except per share data 2017 2016 2015 2014 2013 revenues.
 $ 6920948 6098037 6616632 6564721 6080257 net revenues1.
 $ 2319189 2164036 2187777 1981427 1882853 net earnings attributable to shareholders.
$ 489345 430807 457223 376888 348526 diluted earnings attributable to shareholders per share $ 2. 69 2 36 2 40 1 92 1 68 basic earnings attributable to shareholders per share.
 $ 2. 73 2 38 2 42 1 92 1 69 dividends declared and paid per common share.
 $ 0. 84 0 80 0 72 0 64 0 60 cash used for dividends.
 $ 150495 145123 135673 124634 123292 cash used for share repurchases.
 $ 478258 337658 629991 550781 261936 working capital.
 $ 1448333 1288648 1115136 1285188 1526673 total assets.
 $ 3117008 2790871 2565577 2870626 2996416 shareholders 2019 equity.
 $ 1991858 1844638 1691993 1868408 2084783 weighted average diluted shares outstanding.
181666 182704 190223 196768 206895 weighted average basic shares outstanding.
 179247 181282 188941 196147 205995 _______________________ 1non-gaap measure calculated as revenues less related operating expenses attributable to principal services.
 see management's discussion analysis for reconciliation of net revenues to revenues.
 safe harbor for forward-looking statements under private securities litigation reform act of 1995 ; cautionary statements annual report form 10-k fiscal year ended december 31, 2017 contains 201cforward-looking statements , 201d defined in section 27a securities act of 1933  amended section 21e securities exchange act of 1934  amended.
 expeditors or representatives made or may make forward-looking statements  orally or in writing.
 forward-looking statements may be included in press releases  presentations  oral statements with approval authorized executive officer filings by expeditors with securities and exchange commission.
 statements including preceded by followed by or include words or phrases 201cwill likely result 201d , 201care expected to 201d , "would expect" , "would not expect" , 201cwill continue 201d , 201cis anticipated 201d , 201cestimate 201d , 201cproject 201d  "provisional"  "plan"  "believe"  "probable"  "reasonably possible"  "may"  "could"  "should"  "intends"  "foreseeable future" similar expressions intended identify 201cforward-looking statements 201d within meaning private securities litigation reform act of 1995.
statements qualified in entirety by reference to accompanied by discussion in item 1a of certain important factors that could cause actual results to differ from forward-looking statements.
 risks included in item 1a not exhaustive.
 reference also made to other sections of report  include additional factors could adversely impact expeditors' business and financial performance.
 expeditors operates in competitive , complex rapidly changing global environment.
 new risk factors emerge from to not possible for management to predict all such risk factors , nor can it assess impact of all risk factors on expeditors' business or extent to any factor  or combination of factors  may cause actual results to differ from in forward-looking statements.
 forward-looking statements cannot be relied upon as a guarantee of actual results.
 shareholders should be aware while expeditors does  from to communicate with securities analysts , against expeditors' policy to disclose to such analysts any material non-public information or other confidential commercial information.
 shareholders should not assume that expeditors agrees with any statement or report issued by any analyst irrespective of content of statement or report.
 expeditors has policy against issuing financial forecasts or projections or confirming accuracy of forecasts or projections issued by others.
 to extent reports issued by securities analysts contain projections, forecasts or opinions , such reports not the responsibility of expeditors.

| 12/12    | 12/13    | 12/14    | 12/15    | 12/16    | 12/17
----------------------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
expeditors international of washington inc .    | $ 100.00 | $ 113.52 | $ 116.07 | $ 119.12 | $ 142.10 | $ 176.08
standard and poor's 500 index                   | 100.00   | 132.39   | 150.51   | 152.59   | 170.84   | 208.14
nasdaq transportation                           | 100.00   | 133.76   | 187.65   | 162.30   | 193.79   | 248.92
nasdaq industrial transportation ( nqusb2770t ) | 100.00   | 141.60   | 171.91   | 132.47   | 171.17   | 218.34


6.
 restricted cash sysco required by insurers to collateralize part of self-insured portion of workers 2019 compensation and liability claims.
 sysco chosen to satisfy these collateral requirements by depositing funds in insurance trusts or issuing letters of credit.
 for certain acquisitions sysco placed funds into escrow to be disbursed to sellers in specified operating results attained or contingencies resolved.
 escrowed funds related to certain acquisitions in amount of $ 1700000 released during fiscal 2006, included $ 800000 disbursed to sellers.
 summary of restricted cash balances below:.
 funds deposited in insurance trusts************************************** $ 82653000 $ 80410000 escrow funds related to acquisitions ************************************* 19621000 21321000 total************************************************************* $ 102274000 $ 101731000 7.
 derivative financial instruments sysco manages debt portfolio by targeting desired position of fixed and floating rates and may employ interest rate swaps to achieve goal.
 company not use derivative financial instruments for trading or speculative purposes.
 during fiscal years 2003 , 2004 and 2005  company entered into interest rate swap agreements designated as fair value hedges of related debt.
 terms of swap agreements and hedged items hedges considered effective against changes in fair value of debt due to changes in benchmark interest rates over terms.
 shortcut method provided by sfas no.
 133 , 2018 2018accounting for derivative instruments and hedging activities , 2019 2019 applied no need to periodically reassess effectiveness of hedges during terms of swaps.
 interest expense on debt adjusted to include payments made or received under hedge agreements.
 fair value of swaps carried as asset or liability on consolidated balance sheet and carrying value of hedged debt adjusted accordingly.
no fair value hedges outstanding as of july 1 , 2006 or july 2 , 2005.
 amount received upon termination of fair value hedge swap agreements was $ 5316000 and $ 1305000 in fiscal years 2005 and 2004 .
 no terminations of fair value hedge swap agreements in fiscal 2006.
 amount received upon termination swap agreements reflected as increase in carrying value of related debt to reflect fair value at termination.
 increase value debt amortized as reduction of interest expense over remaining term of debt.
 in march 2005  sysco entered forward-starting interest rate swap with notional amount of $ 350000000.
 sfas no.
 133 company designated derivative as cash flow hedge of variability in cash outflows of interest payments on $ 350000000 of september 2005 forecasted debt issuance due to changes in benchmark interest rate.
 fair value of swap as of july 2, 2005 was ( $ 32584000 ) reflected in accrued expenses on consolidated balance sheet corresponding amount reflected as loss , net of tax  in other comprehensive income ( loss ).
 in september 2005  with issuance of 5. 375% ( 5. 375 % ) senior notes sysco settled $ 350000000 notional amount forward-starting interest rate swap.
 upon settlement paid cash of $ 21196000  represented fair value of swap agreement at time of settlement.
 amount amortized as interest expense over 30-year term of debt unamortized balance reflected as loss , net of tax  in other comprehensive income ( loss ).
 normal course of business sysco enters into forward purchase agreements for procurement of fuel , electricity and product commodities related to sysco 2019s business.
 certain agreements meet definition of derivative and qualify for normal purchase and sale exemption under accounting literature.
company elected use exemption for agreements not recorded fair value.
 %%transmsg*** transmitting job : h39408 pcn : 046000000 *** %%pcmsg|44 |00010|yes|no|09/06/2006 17:22|0|1|page valid, no graphics -- color : n|

| july 1 2006 | july 2 2005
------------------------------------ | ----------- | -----------
funds deposited in insurance trusts  | $ 82653000  | $ 80410000
escrow funds related to acquisitions | 19621000    | 21321000
total                                | $ 102274000 | $ 101731000


purchases equity securities 2013 during 2018 , repurchased 57669746 shares common stock average price $ 143. 70.
 following table presents common stock repurchases each month for fourth quarter 2018 : period total number of shares purchased average price paid per share total number shares purchased part of publicly announced plan or program [b maximum number shares remaining under plan or program.
 total number shares purchased during quarter includes approximately 17391 shares delivered or attested to upc by employees to pay stock option exercise prices , satisfy excess tax withholding obligations for stock option exercises or vesting of retention units pay withholding obligations for vesting of retention shares.
 effective january 1 , 2017  board of directors authorized repurchase of up to 120 million shares common stock by december 31 , 2020.
 repurchases may be made open market or through other transactions.
 management has sole discretion determining timing amount transactions.

period                   | total number of shares purchased [a] | average price paid per share | total number of shares purchased as part of a publicly announcedplan or program [b] | maximum number of shares remaining under the plan or program [b]
------------------------ | ------------------------------------ | ---------------------------- | ----------------------------------------------------------------------------------- | ----------------------------------------------------------------
oct . 1 through oct . 31 | 6091605                              | $ 158.20                     | 6087727                                                                             | 32831024
nov . 1 through nov . 30 | 3408467                              | 147.91                       | 3402190                                                                             | 29428834
dec . 1 through dec . 31 | 3007951                              | 148.40                       | 3000715                                                                             | 26428119
total                    | 12508023                             | $ 153.04                     | 12490632                                                                            | n/a