geographic basis 1% ( 1 % ) increase in net sales reflects higher net sales in north america emea partially offset by lower net sales in asia.
 increase in net sales in north america driven primarily by higher sales of digital entertainment devices partially offset by lower demand for iden infrastructure equipment driven by customer expenditures returning to historic trends compared to strong 2005.
 increase in net sales in emea driven primarily by higher sales of digital entertainment devices.
 decrease in net sales in asia due to delays in 3g licenses in china led service providers to slow near-term capital investment competitive pricing pressure.
 net sales in north america significant portion of segment 2019s business accounting for approximately 56% ( 56 % ) of segment 2019s total net sales in 2006 compared to 55% ( 55 % ) net sales in 2005.
 segment reported operating earnings of $ 787 million in 2006  compared to $ 1. 2 billion in 2005.
 36% ( 36 % ) decrease in operating earnings due to decrease in gross margin  due to unfavorable product/regional mix competitive pricing in wireless networks market increase in other charges ( income ) from increase in reorganization of business charges  primarily related to employee severance  from legal reserve.
 percentage of net sales in 2006 compared to 2005 gross margin , sg&a expenses  r&d expenditures operating margin all decreased.
 in 2006 net sales to segment 2019s top five customers  included sprint nextel , comcast corporation  verizon  kddi china mobile  represented 45% ( 45 % ) of segment 2019s total net sales.
 segment 2019s backlog was $ 3. 2 billion at december 31 , 2006  compared to $ 2. 4 billion at december 31 , 2005.
increase in backlog due to strong orders for digital and hd/dvr set-tops.
 in market for digital entertainment devices  demand for segment 2019s products depends on capital spending by broadband operators for constructing  rebuilding upgrading communications systems for offering advanced services.
 in 2006  digital video customers increased purchases of segment 2019s products and services primarily due to increased demand for digital video set-tops , particularly hd/dvr set-tops.
 during 2006  segment completed significant acquisitions  including : ( i ) kreatel communications ab , leading developer of innovative ip-based digital set-tops and software , ii ) nextnet wireless , inc.  former clearwire corporation subsidiary leading provider of ofdm-based non-line-of-sight ( 201cnlos 201d wireless broadband infrastructure equipment  iii ) broadbus technologies , inc.  provider of technology solutions for television on demand  iv ) vertasent llc , software developer for managing technology elements for switched digital video networks.
 these acquisitions did not material impact on segment results in 2006.
 enterprise mobility solutions segment enterprise mobility solutions segment designs , manufactures , sells  installs services analog and digital two-way radio , voice data communications products and systems for private networks , wireless broadband systems end-to-end enterprise mobility solutions to wide range of enterprise markets  including government and public safety agencies ( products referred to as 201cgovernment and public safety market 201d ) retail , utility , transportation , manufacturing  healthcare other commercial customers ( collectively referred to as 201ccommercial enterprise market 201d ).
2007 segment 2019s net sales represented 21% ( 21 % ) company 2019s consolidated net sales compared to 13% ( 13 % ) 2006 14% ( 14 % ) in 2005.
 dollars in millions ) 2007 2006 2005 20142006 years ended december 31 percent change.
 segment results 20142007 compared to 2006 2007 segment 2019s net sales increased 43% ( 43 % ) to $ 7. 7 billion  compared to $ 5. 4 billion 2006.
 43% ( 43 % ) increase net sales primarily due to increased net sales commercial enterprise market driven by net sales from symbol business acquired january 2007.
 net sales government public safety market increased 6% ( 6 % ) primarily due to strong demand north america.
 geographic net sales increased all regions.
 62 management 2019s discussion analysis of financial condition results operations

( dollars in millions ) | years ended december 31 2007 | years ended december 31 2006 | years ended december 31 2005 | years ended december 31 2007 20142006 | 2006 20142005
----------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | -------------
segment net sales       | $ 7729                       | $ 5400                       | $ 5038                       | 43% ( 43 % )                          | 7% ( 7 % )
operating earnings      | 1213                         | 958                          | 860                          | 27% ( 27 % )                          | 11% ( 11 % )


pension expense.
 decreased prior year due to lower pension settlements lower loss amortization from favorable asset experience impact higher discount rates offset by lower expected returns on assets.
 special items ( settlements , termination benefits  curtailments ) decreased prior year due to lower pension settlement losses.
 in fiscal year 2019  special items of $ 7. 2 included pension settlement losses of $ 6. 4 , $ 5. 0 recorded during second quarter related to. s.
 supplementary pension plan  $. 8 of termination benefits.
 amounts reflected within "other non- operating income ( expense ) net" on consolidated income statements.
 in fiscal year 2018  special items of $ 48. 9 included pension settlement loss of $ 43. 7 connection with transfer of certain pension assets and payment obligations for.
 salaried hourly plans to insurer during fourth quarter  $ 4. 8 of pension settlement losses related to lump sum payouts from u. s.
 supplementary pension plan  $. 4 of termination benefits.
.
 lloyds equalization ruling on 26 october 2018 united kingdom high court issued ruling related to equalization of pension plan participants 2019 benefits for gender effects of guaranteed minimum pensions.
 result ruling estimated impact of retroactively increasing benefits in.
 plan accordance with high court ruling.
 treated additional benefits as prior service cost resulted in increase to projected benefit obligation accumulated other comprehensive loss of $ 4. 7 during first quarter of fiscal year 2019.
 amortizing this cost over average remaining life expectancy of.
 participants.
 2020 outlook in fiscal year 2020  expect pension expense to be approximately $ 5 to $ 20 , includes expected pension settlement losses of $ 5 to $ 10 , depending on timing of retirements.
expected range reflects lower interest cost higher total assets partially offset by higher expected loss amortization due to impact of lower discount rates.
 in fiscal year 2020  expect pension expense to include approximately $ 105 for amortization of actuarial losses.
 in fiscal year 2019 pension expense included amortization of actuarial losses of $ 76. 2.
 net actuarial losses of $ 424. 4 recognized in accumulated other comprehensive income in fiscal year 2019.
 actuarial gains losses amortized into pension expense over prospective periods not offset by future gains or losses.
 future changes in discount rate actual returns on plan assets different from expected returns would impact actuarial gains ) losses amortization years beyond fiscal year 2020.
 pension funding includes contributions to funded plans benefit payments for unfunded plans primarily non-qualified plans.
 funding policy is that contributions combined with appreciation earnings sufficient to pay benefits without creating unnecessary surpluses.
 make contributions to satisfy all legal funding requirements while managing capacity to benefit from tax deductions attributable to plan contributions.
 analyze liabilities demographics of each plan guide level of contributions.
 during 2019 and 2018  cash contributions to funded plans and benefit payments for unfunded plans were $ 40. 2 and $ 68. 3  respectively.
 for fiscal year 2020  cash contributions to defined benefit plans estimated to be $ 30 to $ 40.
 estimate based on expected contributions to certain international plans and anticipated benefit payments for unfunded plans dependent upon timing of retirements.
 actual future contributions depend on future funding legislation  discount rates  investment performance  plan design  other factors.
 refer to contractual obligations discussion on page 37 for projection of future contributions.

| 2019           | 2018
--------------------------------------------------------------------- | -------------- | --------------
pension expense including special items noted below                   | $ 27.6         | $ 91.8
settlements termination benefits and curtailments ( "special items" ) | 7.2            | 48.9
weighted average discount rate 2013 service cost                      | 3.4% ( 3.4 % ) | 3.2% ( 3.2 % )
weighted average discount rate 2013 interest cost                     | 3.4% ( 3.4 % ) | 2.9% ( 2.9 % )
weighted average expected rate of return on plan assets               | 6.4% ( 6.4 % ) | 6.9% ( 6.9 % )
weighted average expected rate of compensation increase               | 3.5% ( 3.5 % ) | 3.5% ( 3.5 % )


management 2019s discussion analysis of financial condition results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) effect of foreign exchange rate changes on cash and cash equivalents in consolidated statements of cash flows resulted in decrease of $ 156. 1 in 2015.
 decrease primarily result of u. s.
 dollar stronger than several foreign currencies  including australian dollar  brazilian real  canadian dollar  euro south african rand as of december 31 , 2015 compared to december 31 , 2014.
 liquidity outlook expect cash flow from operations , cash cash equivalents to be sufficient to meet anticipated operating requirements minimum for next twelve months.
 have committed corporate credit facility uncommitted facilities available to support operating needs.
 continue maintain disciplined approach to managing liquidity  with flexibility over significant uses of cash  including capital expenditures  cash used for new acquisitions  common stock repurchase program common stock dividends.
 from time evaluate market conditions financing alternatives for opportunities to raise additional funds improve liquidity profile  enhance financial flexibility manage market risk.
 ability to access capital markets depends on factors include specific to us  credit rating  related to financial markets  amount or terms of available credit.
 no guarantee able to access new sources of liquidity on commercially reasonable terms  or at all.
 funding requirements significant funding requirements include operations , non-cancelable operating lease obligations , capital expenditures  acquisitions  common stock dividends  taxes debt service.
 may be required to make payments to minority shareholders in certain subsidiaries if they exercise options to sell us equity interests.
 notable funding requirements include : 2022 debt service 2013 our 2. 25% ( 2. 25 % ) senior notes in aggregate principal amount of $ 300.0 mature november 15, 2017 , $ 22. 6 note classified within other notes payable due june 30 , 2017.
 expect to use available cash to fund retirement of outstanding notes upon maturity.
 remainder of debt primarily long-term maturities scheduled through 2024.
 see table below for maturity schedule long-term debt.
 2022 acquisitions 2013 paid cash $ 52. 1 , net of cash acquired $ 13. 6 , for acquisitions completed 2016.
 paid $ 0. 5 in up-front payments $ 59. 3 deferred payments for prior-year acquisitions ownership increases in consolidated subsidiaries.
 addition to potential cash expenditures for new acquisitions expect to pay approximately $ 77. 0 in 2017 related to prior-year acquisitions.
 may be required to pay approximately $ 31. 0 in 2017 related to put options held by minority shareholders if exercised.
 continue to evaluate strategic opportunities to grow strengthen market position particularly digital marketing services offerings expand presence in high-growth key strategic world markets.
 2022 dividends 2013 during 2016 , paid four quarterly cash dividends of $ 0. 15 per share on common stock aggregate dividend payments of $ 238. 4.
 february 10 , 2017  announced board of directors ( 201cboard 201d ) declared common stock cash dividend of $ 0. 18 per share , payable march 15 , 2017 to holders of record as of close of business on march 1 , 2017.
 assuming pay quarterly dividend of $ 0. 18 per share no significant change in number of outstanding shares as of december 31 , 2016  expect to pay approximately $ 280. 0 over next twelve months.

balance sheet data                              | december 31 , 2016 | december 31 , 2015
----------------------------------------------- | ------------------ | ------------------
cash cash equivalents and marketable securities | $ 1100.6           | $ 1509.7
short-term borrowings                           | $ 85.7             | $ 132.9
current portion of long-term debt               | 323.9              | 1.9
long-term debt                                  | 1280.7             | 1610.3
total debt                                      | $ 1690.3           | $ 1745.1


higher average borrowings.
 recapitalization late in first quarter 2005 resulted in full year of interest in 2006 compared to ten months 2005.
 increase in interest expense in 2005 compared to 2004 resulted from recapitalization 2005.
 income tax expense totaled $ 150. 2 million , $ 116. 1 million $ 118. 3 million for 2006 , 2005 2004 .
 resulted in effective tax rate of 37. 2% ( 37. 2 % ), 37. 2%. 2 % ) and 37. 6% ( 37. 6 % ) for 2006  2005 2004.
 net earnings totaled $ 259. 1 million , $ 196. 6 $ 189. 4 million for 2006 , 2005 2004  or $ 1. 37 , $ 1. 53 $ 1. 48 per diluted share .
 segment results of operations transaction processing services ( in thousands ).
 revenues for derived from three main revenue channels ; enterprise solutions , integrated financial solutions international.
 revenues from transaction processing services totaled $ 2458. 8 million , $ 1208. 4 $ 892. 0 million for 2006 , 2005 2004 .
 overall segment increase of $ 1250. 4 million during 2006 2005 attributable to certegy merger contributed $ 1067. 2 million to overall increase.
 majority of remaining 2006 growth attributable to organic growth within integrated financial solutions and international revenue channels international including $ 31. 9 million related to newly formed business process outsourcing operation in brazil.
 overall segment increase of $ 316. 4 in 2005 compared to 2004 results from inclusion full year of results for 2004 acquisitions of aurum , sanchez , kordoba  intercept  contributed $ 301. 1 million of increase.
 cost of revenues for transaction processing services segment totaled $ 1914. 1 million , $ 904. 1 million and $ 667.1 million for 2006, 2005 2004 .
 overall segment increase of $ 1010. 0 million during 2006 compared to 2005 attributable to certegy merger contributed $ 848. 2 million to increase.
 gross profit percentage of revenues ( 201cgross margin 201d ) was 22. 2% ( 22. 2 % ) , 25. 2% ( 25. 2 % ) 25. 2% ( 25. 2 % ) for 2006  2005 2004.
 decrease in gross profit in 2006 2005 due to february 1, 2006 certegy merger  businesses typically have lower margins than historically owned businesses.
 incremental intangible asset amortization to certegy merger contributed to decrease in gross margin.
 included in cost of revenues depreciation and amortization of $ 272. 4 million , $ 139. 8 million  $ 94. 6 million for 2006  2005 2004 .
 selling , general administrative expenses totaled $ 171. 1 million , $ 94. 9 million $ 99. 6 million for 2006  2005 2004 .
 increase in 2006 compared to 2005 attributable to certegy merger contributed $ 73. 7 million to overall increase of $ 76. 2 million.
 decrease of $ 4. 7 million in 2005 2004 attributable to effect acquisition related costs in 2004.
 included in selling  general administrative expenses depreciation and amortization of $ 11. 0 million , $ 9. 1 million $ 2. 3 million for 2006 , 2005 2004 .

| 2006      | 2005      | 2004
------------------------------------------- | --------- | --------- | --------
processing and services revenues            | $ 2458777 | $ 1208430 | $ 892033
cost of revenues                            | 1914148   | 904124    | 667078
gross profit                                | 544629    | 304306    | 224955
selling general and administrative expenses | 171106    | 94889     | 99581
research and development costs              | 70879     | 85702     | 54038
operating income                            | $ 302644  | $ 123715  | $ 71336


entergy corporation subsidiaries notes to financial statements consists of pollution control revenue bonds environmental revenue bonds  some secured by collateral first mortgage bonds.
 these notes have stated interest rate have implicit interest rate of 4. 8%.
 pursuant to nuclear waste policy act of 1982  entergy 2019s nuclear owner/licensee subsidiaries have contracts with doe for spent nuclear fuel disposal service.
 contracts include one-time fee for generation prior to april 7 , 1983.
 entergy arkansas only entergy company generated electric power with nuclear fuel prior to that date includes one-time fee  plus accrued interest  in long-term debt.
 see note 10 to financial statements for discussion of waterford 3 grand gulf lease obligations.
 fair value excludes lease obligations of $ 109 million at entergy louisiana $ 34 million at system energy  long-term doe obligations of $ 181 million at entergy arkansas  note payable to nypa of $ 35 million at entergy  includes debt due within one year.
 fair values classified as level 2 in fair value hierarchy discussed in note 16 to financial statements based on prices from inputs benchmark yields reported trades.
 annual long-term debt maturities ( excluding lease obligations long-term doe obligations ) for debt outstanding as of december 31, 2015  for next five years are as follows : amount ( in thousands ).
 in november 2000  entergy 2019s non-utility nuclear business purchased fitzpatrick and indian point 3 power plants in seller-financed transaction.
 entergy issued notes to nypa with seven annual installments of approximately $ 108 million commencing one year from date closing eight annual installments of $ 20 million commencing eight years from date closing.
 these notes have stated interest rate implicit interest rate of 4.8% ( 4. 8 % ).
 in accordance with purchase agreement with nypa  purchase of indian point 2 in 2001 resulted in entergy liable to nypa for additional $ 10 million per year for 10 years beginning september 2003.
 liability recorded upon purchase of indian point 2 in september 2001.
 purchase agreement with nypa entergy recorded liability representing net present value of payments entergy liable to nypa for each year fitzpatrick and indian point 3 power plants run beyond original nrc license expiration date.
 with planned shutdown of fitzpatrick at end of current fuel cycle entergy reduced liability by $ 26. 4 million in 2015 terms purchase agreement.
 under provision in letter of credit supporting notes if utility operating companies or system energy default on other indebtedness entergy could be required to post collateral to support letter of credit.
 entergy louisiana , entergy mississippi , entergy texas , and system energy obtained long-term financing authorizations from ferc extend through october 2017.
 entergy arkansas obtained long-term financing authorization from apsc extends through december 2018.
 entergy new orleans obtained long-term financing authorization from city council extends through july 2016.
 capital funds agreement agreement with certain creditors entergy corporation agreed to supply system energy with sufficient capital to

| amount ( in thousands )
---- | -----------------------
2016 | $ 204079
2017 | $ 766451
2018 | $ 822690
2019 | $ 768588
2020 | $ 1631181


advance auto parts , inc.
 subsidiaries notes to consolidated financial statements 2013 ( continued ) december 30 , 2006 , december 31 , 2005 january 1 , 2005 ( in thousands  except per share data ) 8.
 inventories  net inventories stated at lower of cost or market  cost determined using last-in , first-out ( "lifo" ) method for approximately 93% ( 93 % ) of inventories at december 30 , 2006 and december 31 , 2005.
 under lifo method company 2019s cost of sales reflects costs of most currently purchased inventories inventory carrying balance represents costs relating to prices paid in prior years.
 company 2019s costs to acquire inventory decreasing of significant growth.
 cost to replace inventory less than lifo balances carried for similar product.
 result lifo method ability obtain lower product costs company recorded reduction to cost of sales of $ 9978 for fiscal year ended 2006  increase in cost of sales of $ 526 for fiscal year ended 2005 reduction to cost of sales of $ 11212 for fiscal year ended 2004.
 remaining inventories of product cores  non-consumable portion of certain parts and batteries valued under first-in , first-out ( "fifo" ) method.
 core values included as part of merchandise costs passed on to customer or returned to vendor.
 products not subject to frequent cost changes like other merchandise inventory no material difference from applying lifo or fifo valuation methods.
 company capitalizes certain purchasing and warehousing costs into inventory.
 purchasing and warehousing costs included in inventory  at fifo , at december 30 , 2006 and december 31 , 2005  were $ 95576 and $ 92833 , respectively.
inventories consist : december 30 , december 31 , 2006 2005.
 replacement cost approximated fifo cost at december 30 , 2006 and december 31 , 2005.
 inventory quantities tracked through perpetual inventory system.
 company uses cycle counting program in distribution centers , parts delivered quickly warehouses  pdqs  local area warehouses laws  retail stores to ensure accuracy of perpetual inventory quantities of merchandise and core inventory.
 company establishes reserves for estimated shrink based on historical accuracy effectiveness of cycle counting program.
 establishes reserves for potentially excess and obsolete inventories based on current inventory levels historical analysis of product sales current market conditions.
 company 2019s inventory risk of obsolescence minimal excess inventory returned to company vendors for credit.
 company provides reserves when less than full credit expected from vendor or when liquidating product result in retail prices below recorded costs.
 company 2019s reserves against inventory for these matters were $ 31376 and $ 22825 at december 30, 2006 and december 31 , 2005  respectively.
 9.
 property and equipment : property equipment stated at cost  less accumulated depreciation.
 expenditures for maintenance and repairs charged directly to expense when incurred ; major improvements capitalized.
 when items sold or retired related cost and accumulated depreciation removed from accounts gain or loss reflected in consolidated statements of operations.
 depreciation of land improvements , buildings  furniture  fixtures equipment  vehicles provided over estimated useful lives range from 2 to 40 years of respective assets using straight-line method.

| december 30 2006 | december 31 2005
---------------------------------------- | ---------------- | ----------------
inventories at fifo net                  | $ 1380573        | $ 1294310
adjustments to state inventories at lifo | 82767            | 72789
inventories at lifo net                  | $ 1463340        | $ 1367099


republic services , inc.
 notes to consolidated financial statements 2014 ( continued ) 16.
 financial instruments fuel hedges entered multiple swap agreements cash flow hedges to mitigate exposure related to changes in diesel fuel prices.
 swaps qualified for effective hedges of changes in prices forecasted diesel fuel purchases ( fuel hedges ).
 table summarizes outstanding fuel hedges as of december 31 , 2013 : year gallons hedged weighted average contract price per gallon.
 if national.
 on-highway average price for gallon diesel fuel published by department of energy exceeds contract price per gallon receive difference between average price and contract price ( multiplied by notional gallons ) from counterparty.
 if average price less than contract price per gallon pay difference to counterparty.
 fair values of fuel hedges determined using standard option valuation models assumptions about commodity prices based on observed underlying markets ( level 2 in fair value hierarchy ).
 aggregate fair values of outstanding fuel hedges as of december 31 , 2013 and 2012 were current assets of $ 6. 7 million and $ 3. 1 million  current liabilities of $ 0. 1 million and $ 0. 4 million , recorded in other prepaid expenses other current assets accrued liabilities in consolidated balance sheets.
 ineffective portions of changes in fair values resulted in ( losses ) gains of less than $ 0. 1 million for years ended december 31 , 2013 , 2012 2011  recorded in other income ( expense ) net in consolidated statements of income.
 total gain ( loss ) recognized in other comprehensive income for fuel hedges ( effective portion ) was $ 2. 4 million , $ 3. 4 million and $ ( 1. 7 ) million , for years ended december 31 , 2013 , 2012 2011 .
recycling commodity hedges revenue from sale of recycling commodities is primarily from sales of old corrugated cardboard ( occ ) and old newspaper ( onp ).
 use derivative instruments swaps costless collars as cash flow hedges to manage exposure to changes in prices of these commodities.
 entered into multiple agreements related to forecasted occ and onp sales.
 agreements qualified for effective hedges of changes in prices of certain forecasted recycling commodity sales ( commodity hedges ).
 entered into costless collar agreements on forecasted sales of occ and onp.
 agreements involve combining purchased put option giving right to sell occ and onp at established floor strike price with written call option obligating us to deliver occ and onp at established cap strike price.
 puts and calls have same settlement dates net settled in cash on such dates same terms to expiration.
 contemporaneous combination of options resulted in no net premium for us represent costless collars.
 under agreements make or receive no payments as long as settlement price between floor price and cap price ; if settlement price above cap will pay counterparty amount equal to excess of settlement price over cap times monthly volumes hedged.
 if settlement price

year | gallons hedged | weighted average contractprice per gallon
---- | -------------- | -----------------------------------------
2014 | 27000000       | $ 3.81
2015 | 18000000       | 3.74
2016 | 12000000       | 3.68


entergy corporation subsidiaries management's financial discussion analysis net revenue 2004 compared to 2003 net revenue entergy measure of gross margin consists of operating revenues net of 1 ) fuel  fuel-related  purchased power expenses 2 ) other regulatory credits.
 analysis of change in net revenue comparing 2004 to 2003.
 volume/weather variance from increased usage offset by effect milder weather on sales during 2004 compared to 2003.
 billed usage increased 2261 gwh in industrial commercial sectors.
 summer capacity charges variance due to amortization in 2003 at entergy gulf states entergy louisiana of deferred capacity charges for summer 2001.
 entergy gulf states' amortization began june 2002 ended may 2003.
 entergy louisiana's amortization began august 2002 ended july 2003.
 base rates increased net revenue due to base rate increase at entergy new orleans effective june 2003.
 deferred fuel cost revisions variance resulted from revision in 2003 to unbilled sales pricing estimate to align fuel component pricing with expected recoverable fuel costs at entergy louisiana.
 deferred fuel cost revisions decreased net revenue due to revision in 2004 to estimate of fuel costs filed for recovery at entergy arkansas in march 2004 energy cost recovery rider.
 price applied to unbilled sales variance from decrease in fuel price in 2004 caused by effect of nuclear plant outages in 2003 on average fuel costs.
 gross operating revenues regulatory credits operating revenues include increase in fuel cost recovery revenues of $ 475 million and $ 18 million in electric and gas sales due to higher fuel rates in 2004 from increases in market prices of purchased power natural gas.
 revenue increase offset by increased fuel purchased power expenses.
regulatory credits increased due to : 2022 cessation of grand gulf accelerated recovery tariff suspended in july 2003 ; 2022 amortization 2003 of deferred capacity charges for summer 2001 power purchases at entergy gulf states and entergy louisiana ; 2022 deferral in 2004 of $ 14. 3 million capacity charges related to generation resource planning allowed by lpsc ; 2022 deferral 2004 by entergy louisiana of $ 11. 4 million related to voluntary severance program  with proposed stipulation with lpsc staff ;

| ( in millions )
------------------------------- | ---------------
2003 net revenue                | $ 4214.5
volume/weather                  | 68.3
summer capacity charges         | 17.4
base rates                      | 10.6
deferred fuel cost revisions    | -46.3 ( 46.3 )
price applied to unbilled sales | -19.3 ( 19.3 )
other                           | -1.2 ( 1.2 )
2004 net revenue                | $ 4244.0


annual report 2013 duke realty corporation 37 addition to capitalization of overhead costs also capitalized $ 16. 8 million , $ 9. 4 million $ 4. 3 million of interest costs in years ended december 31 , 2013 , 2012 2011  respectively.
 table summarizes second generation capital expenditures by reportable operating segment ( in thousands ) :.
 first and second generation expenditures vary significantly between leases per square foot basis dependent upon factors including product type  nature of tenant's operations  specific physical characteristics of each property market in property located.
 second generation expenditures related to 79 suburban office buildings sold in blackstone office disposition totaled $ 26. 2 million in 2011.
 dividends and distributions required to meet distribution requirements of internal revenue code of 1986 , as amended ( "code" ) to maintain reit status.
 paid dividends of $ 0. 68 per common share for each years ended december 31 , 2013 , 2012 2011.
 expect to continue to distribute at least amount equal to taxable earnings , meet requirements to maintain reit status  additional amounts as determined by board of directors.
 distributions declared at discretion of board of directors subject to actual cash available for distribution  financial condition  capital requirements other factors board of directors deems relevant.
 at december 31 , 2013 had three series of preferred stock outstanding.
 annual dividend rates preferred shares range between 6. 5% ( 6. 5 % ) and 6. 625% ( 6. 625 % ) paid quarterly in arrears.
 in february 2013  redeemed all outstanding series o shares for total payment of $ 178. 0 million  reducing future quarterly dividend commitments by $ 3. 7 million.
 in march 2012  redeemed all of 6. 950% ( 6.950 % ) series m cumulative redeemable preferred shares "series m shares ) total payment $ 168. 3 million reducing future quarterly dividend commitments $ 2. 9 million.
 july 2011  redeemed 7. 25% ( 7. 25 % ) series n cumulative redeemable preferred shares "series n shares total payment $ 108. 6 million reducing future quarterly dividend commitments by $ 2. 0 million.
 debt maturities debt outstanding at december 31, 2013 face value totaling $ 4. 3 billion weighted average interest rate 5. 49% ( 5. 49 % ) maturity dates between 2014 and 2028.
 total amount $ 3. 1 billion unsecured debt  $ 1. 1 billion secured debt $ 88. 0 million outstanding on drlp unsecured line of credit at december 31 , 2013.
 made scheduled and unscheduled principal payments of $ 1. 0 billion on outstanding debt year ended december 31 , 2013.

| 2013    | 2012    | 2011
----------------------------------------- | ------- | ------- | -------
industrial                                | $ 41971 | $ 33095 | $ 34872
office                                    | 46600   | 30092   | 63933
medical office                            | 3106    | 641     | 410
non-reportable rental operations segments | 121     | 56      | 49
total                                     | $ 91798 | $ 63884 | $ 99264


liquidity capital resources maintained strong financial position throughout fiscal year 2019.
 as of 30 september 2019  consolidated balance sheet included cash cash items of $ 2248. 7.
 consistent access to commercial paper markets cash flows from operating and financing activities expected to meet liquidity needs for foreseeable future.
 as of 30 september 2019  had $ 971. 5 of foreign cash and cash items compared to total amount cash cash items of $ 2248. 7.
 result of tax act , not expect significant portion of foreign subsidiaries' and affiliates' earnings subject to.
 income tax upon repatriation to united states.
 repatriation earnings may be subject to foreign withholding and other taxes depending on country in subsidiaries affiliates reside.
 significant current investment plans outside u. s.  intent to permanently reinvest majority of foreign cash and cash items subject to additional taxes outside u. s.
 refer to note 23 , income taxes  for additional information.
 table summarizes cash flows from operating activities , investing activities financing activities from continuing operations on consolidated statements of cash flows:.
 operating activities for fiscal year ended 30 september 2019 , cash provided by operating activities was $ 2969. 9.
 income from continuing operations of $ 1760. 0 adjusted for items including depreciation and amortization, deferred income taxes , impacts from tax act , charge for facility closure of customers  undistributed earnings of unconsolidated affiliates  gain on sale of assets and investments  share-based compensation  noncurrent capital lease receivables  certain other adjustments.
 "gain on sale of assets and investments" includes gain of $ 14. 1 recognized on disposition of interest in high-tech gases ( beijing ) co. , ltd.previously held equity investment in industrial gases 2013 asia segment.
 refer to note 7 acquisitions consolidated financial statements for additional information.
 working capital accounts use of cash of $ 25. 3  driven by $ 69. 0 from trade receivables $ 41. 8 from payables and accrued liabilities partially offset by $ 79. 8 from other receivables.
 use of cash within "payables accrued liabilities driven by $ 48. 9 decrease in accrued utilities $ 30. 3 decrease in accrued interest offset by $ 51. 6 increase in customer advances related to sale of equipment activity.
 decrease in accrued utilities driven by contract modification to tolling arrangement india lower utility costs industrial gases 2013 americas segment.
 source of cash from other receivables of $ 79. 8 due to maturities of forward exchange contracts hedged foreign currency exposures collection of value added taxes.
 fiscal year ended 30 september 2018 cash provided by operating activities was $ 2547. 2  including income from continuing operations of $ 1455. 6.
 other adjustments of $ 131. 6 include $ 54. 9 net impact from remeasurement of intercompany transactions.
 related hedging instruments eliminate earnings impact included working capital adjustment in other receivables payables accrued liabilities.
 adjustments impacted by cash received from early termination of cross currency swap of $ 54. 4 , excess of pension expense over pension contributions of $ 23. 5.
 working capital accounts use of cash of $ 265. 4  driven by payables accrued liabilities  inventories trade receivables partially offset by other receivables.
 use of cash in payables accrued liabilities of $ 277. 7 includes decrease in customer advances of $ 145.7 related to sale equipment activity $ 67. 1 for maturities of forward exchange contracts hedged foreign currency exposures.
 use of cash in inventories resulted from purchase of helium molecules.
 inventories reflect noncash impact of change in accounting for u.
 inventories from lifo to fifo.
 source of cash from other receivables of $ 128. 3 due to maturities of forward exchange contracts hedged foreign currency exposures.

cash provided by ( used for ) | 2019               | 2018
----------------------------- | ------------------ | ------------------
operating activities          | $ 2969.9           | $ 2547.2
investing activities          | -2113.4 ( 2113.4 ) | -1641.6 ( 1641.6 )
financing activities          | -1370.5 ( 1370.5 ) | -1359.8 ( 1359.8 )


14.
 accounting for long-lived assets eog reviews proved oil and gas properties for impairment purposes by comparing expected undiscounted future cash flows at depreciation depletion amortization group level to unamortized capitalized cost of asset.
 carrying rr values for assets impaired adjusted to estimated fair value using income approach in fair value measurement topic.
 eog utilizes accepted offers from third-party purchasers as basis for determining fair value.
 during 2017  proved oil and gas properties with carrying amount $ 370 million written down to fair value of $ 146 million pretax impairment charges of $ 224 million.
 2016  oil gas properties with carrying amount $ 643 million written down to fair value of $ 527 million pretax impairment charges of $ 116 million.
 impairments in 2017 , 2016 2015 included domestic legacy natural gas assets.
 amortization and impairments of unproved oil and gas property costs  including amortization of capitalized interest were $ 211 million , $ 291 million and $ 288 million during 2017  2016 2015 .
 15.
 asset retirement obligations table presents reconciliation of beginning and ending aggregate carrying amounts of short-term and long-term legal obligations associated with retirement of property , plant and equipment for years ended december 31 , 2017 and 2016 ( in thousands ) :.
 ( 1 ) includes $ 164 million in 2016 related to yates transaction.
 ( 2 ) includes settlements related to asset sales.
 current and noncurrent portions of eog's asset retirement obligations included in current liabilities - on consolidated balance sheets.

| 2017             | 2016
-------------------------------------- | ---------------- | ----------------
carrying amount at beginning of period | $ 912926         | $ 811554
liabilities incurred ( 1 )             | 54764            | 212739
liabilities settled ( 2 )              | -61871 ( 61871 ) | -94800 ( 94800 )
accretion                              | 34708            | 32306
revisions                              | -9818 ( 9818 )   | -38286 ( 38286 )
foreign currency translations          | 16139            | -10587 ( 10587 )
carrying amount at end of period       | $ 946848         | $ 912926
current portion                        | $ 19259          | $ 18516
noncurrent portion                     | $ 927589         | $ 894410


2018 ppg annual report 10-k foreign currency translation offset by cost reclassifications with adoption new revenue recognition standard.
 refer to note 2 "revenue recognition" part 2 of form 10-k cost management including restructuring cost savings 2017 vs.
 2016 selling  general administrative expenses decreased $ 1 million due to lower net periodic pension postretirement benefit costs lower selling advertising costs restructuring cost savings offset by wage cost inflation selling general administrative expenses from acquired businesses foreign currency translation other charges income.
 interest expense  net of interest income interest expense interest income increased $ 10 million in 2018 versus 2017 due to issuance of long- term debt early 2018.
 interest expense net of interest income decreased $ 14 million in 2017 versus 2016 due to lower interest rate debt outstanding in 2017.
 business restructuring  net pretax restructuring charge of $ 83 million recorded in second quarter of 2018 offset by changes in estimates to complete previously recorded programs of $ 17 million.
 pretax charge of $ 191 million recorded in 2016.
 refer to note 8 "business restructuring" in item 8 of form 10-k for additional information.
 pension settlement charges during 2017 ppg made lump-sum payments to retirees in ppg's.
 qualified non- qualified pension plans totaling approximately $ 127 million.
 lump-sum payments in excess of expected 2017 service interest costs for affected plans ppg remeasured periodic benefit obligation of plans period payments recorded settlement charges totaling $ 60 million ( $ 38 million after-tax ) during 2017.
 2016 ppg permanently transferred approximately $ 1. 8 billion of.
 canadian pension obligations assets to highly rated insurance companies.
 actions triggered remeasurement partial settlement of company 2019s defined benefit pension plans.
ppg recognized $ 968 million pre-tax settlement charge transactions.
 refer to note 13 , "employee benefit plans" item 8 form 10-k for additional information.
 other charges charges in 2018 and 2016 higher than 2017 primarily due to environmental remediation charges.
 charges principally for environmental remediation at former chromium manufacturing plant associated sites in new jersey.
 refer to note 14 , "commitments and contingent liabilities" item 8 form 10-k for additional information.
 other income lower in 2018 and 2016 than 2017 due to gain from sale mexican plaka business $ 25 million income from legal settlement $ 18 million in 2017.
 refer to note 3, "acquisitions and divestitures" item 8 form 10-k for additional information.

( $ in millions except percentages )    | 2018      | % (  % ) change 2017 | % (  % ) change 2016 | % (  % ) change 2018 vs . 2017 | % (  % ) change 2017 vs . 2016
--------------------------------------- | --------- | -------------------- | -------------------- | ------------------------------ | ------------------------------
interest expense net of interest income | $ 95      | $ 85                 | $ 99                 | 11.8% ( 11.8 % )               | ( 14.1 ) % (  % )
business restructuring net              | $ 66      | $ 2014               | $ 191                | n/a                            | ( 100.0 ) % (  % )
pension settlement charges              | $ 2014    | $ 60                 | $ 968                | ( 100.0 ) % (  % )             | ( 93.8 ) % (  % )
other charges                           | $ 122     | $ 74                 | $ 242                | 64.9% ( 64.9 % )               | ( 69.4 ) % (  % )
other income                            | ( $ 114 ) | ( $ 150 )            | ( $ 127 )            | ( 24.0 ) % (  % )              | 18.1% ( 18.1 % )


management 2019s discussion analysis 164 jpmorgan chase & co. /2013 annual report firm ) required to hold more than additional 2. 5% ( 2. 5 % ) tier 1 common.
 basel iii establishes 6. 5% ( 6. 5 % ) tier i common equity standard for definition of 201cwell capitalized 201d under prompt corrective action ( 201cpca 201d ) requirements fdic improvement act ( 201cfdicia 201d ).
 tier i common equity standard effective from first quarter of 2015.
 chart presents basel iii minimum risk-based capital ratios during transitional periods fully phased-in basis.
 chart includes management 2019s target for firm 2019s tier 1 common ratio.
 firm 2019s current expectation basel iii tier 1 common ratio exceed regulatory minimums during transition period upon full implementation in 2019 thereafter.
 firm estimates tier 1 common ratio under basel iii advanced approach fully phased-in basis 9. 5% ( 9. 5 % ) as of december 31 , 2013  achieving management 2019s stated objectives.
 tier 1 common ratio as calculated under basel iii standardized approach estimated at 9. 4% ( 9. 4 % ) as of december 31 , 2013.
 tier 1 common ratio under basel i and basel iii are non-gaap financial measures.
 measures used by bank regulators investors analysts to assess firm 2019s capital position compare firm 2019s capital to other financial services companies.
 following table presents comparison of firm 2019s tier 1 common under basel i rules to estimated tier 1 common under advanced approach of basel iii rules firm 2019s estimated risk-weighted assets.
differences in calculation of rwa between basel i and basel iii advanced approach include : 1 basel iii credit risk rwa based on risk-sensitive approaches rely on internal credit models and parameters  basel i rwa based on fixed supervisory risk- weightings vary by counterparty type and asset class ; basel iii includes rwa for operational risk  basel i does not.
 operational risk capital takes operational losses in quarter following period losses realized calculation incorporates such losses irrespective of issues or business activity losses remediated or reduced.
 firm 2019s operational risk capital model continues to be refined with firm 2019s basel iii advanced approach run.
 as result of model enhancements in 2013  legal expenses incurred by firm in 2013 firm 2019s operational risk capital increased substantially in 2013 over 2012.
 tier 1 common under basel iii includes additional adjustments and deductions not included in basel i tier 1 common  inclusion of accumulated other comprehensive income ( 201caoci 201d ) related to afs securities and defined benefit pension and other postretirement employee benefit ( 201d ) plans.
 december 31 , 2013 ( in millions , except ratios ).
 estimated risk-weighted assets under basel iii advanced approach ( b ) $ 1590873 estimated tier 1 common ratio under basel iii advanced approach ( c ) 9. 5% ( 9. 5 % ) certain exposures  deducted from capital under basel i , are risked-weighted under basel iii.

tier 1 common under basel i rules                                                                   | $ 148887
--------------------------------------------------------------------------------------------------- | --------------
adjustments related to aoci for afs securities and defined benefit pension and opeb plans           | 1474
add back of basel i deductions ( a )                                                                | 1780
deduction for deferred tax asset related to net operating loss and foreign tax credit carryforwards | -741 ( 741 )
all other adjustments                                                                               | -198 ( 198 )
estimated tier 1 common under basel iii rules                                                       | $ 151202
estimated risk-weighted assets under basel iii advanced approach ( b )                              | $ 1590873
estimated tier 1 common ratio under basel iii advanced approach ( c )                               | 9.5% ( 9.5 % )


entergy arkansas , inc.
 management's financial discussion analysis operating activities cash flow from increased $ 8. 8 million in 2004 compared to 2003 due to income tax benefits received 2004 increased recovery of deferred fuel costs.
 increase offset by money pool activity.
 in 2003 domestic utility companies and system energy filed with irs change in tax accounting method notification for calculations of cost of goods sold.
 adjustment implemented simplified method of allocation of overhead to production of electricity provided under irs capitalization regulations.
 cumulative adjustment companies on new methodology resulted in $ 1. 171 billion deduction for entergy arkansas on 2003 income tax return.
 no cash benefit from method change in 2003.
 in 2004 realized $ 173 million in cash tax benefit from method change.
 tax accounting method change issue across utility industry likely be challenged by irs on audit.
 as of december 31 , 2004 entergy has net operating loss ( nol ) carryforward for tax purposes of $ 766. 9 million  resulting from change in tax accounting method related to cost of goods sold.
 if tax accounting method change sustained entergy expects to utilize nol carryforward through 2006.
 cash flow from operations increased $ 80. 1 million in 2003 compared to 2002 due to income taxes paid of $ 2. 2 million in 2003 compared to $ 83. 9 million in 2002 money pool activity.
 increase partially offset by decreased recovery of deferred fuel costs in 2003.
 entergy' receivables from payables to money pool were as follows as of december 31 for each following years:.
 money pool activity used $ 92. 7 million of operating cash flow in 2004 provided $ 73. 4 million in 2003 provided $ 19. 5 million in 2002.
note 4 to domestic utility companies system energy financial statements for description money pool.
 investing activities decrease of $ 68. 1 million in net cash used in investing activities in 2004 compared 2003 due to decrease in construction expenditures less transmission upgrade work requested by merchant generators 2004 lower spending on customer support projects 2004.
 increase of $ 88. 1 million in net cash investing activities in 2003 compared to 2002 due to increase in construction expenditures of $ 57. 4 million maturity of $ 38. 4 million of other temporary investments first quarter 2002.
 construction expenditures increased in 2003 due to 2022 ferc ruling shifted responsibility for transmission upgrade work independent power producers to entergy arkansas ; 2022 ano 1 steam generator  reactor vessel head  transformer replacement project.
 financing activities decrease of $ 90. 7 million in net cash used financing activities in 2004 compared 2003 due to net redemption of $ 2. 4 million long-term debt in 2004 compared to $ 109. 3 million in 2003 partially offset by payment of $ 16. 2 million more in common stock dividends same period.

2004             | 2003             | 2002             | 2001
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 23561          | ( $ 69153 )      | $ 4279           | $ 23794


management 2019s discussion analysis believe our credit ratings primarily based on credit rating agencies 2019 assessment of : 2030 our liquidity , market  credit operational risk management practices ; 2030 level variability of our earnings ; 2030 capital base ; 2030 franchise , reputation management ; 2030 corporate governance ; 2030 external operating environment , including assumed level of government support.
 certain firm 2019s derivatives transacted under bilateral agreements with counterparties who may require us to post collateral or terminate transactions based on changes in credit ratings.
 we assess impact of these bilateral agreements by determining collateral or termination payments assuming a downgrade by all rating agencies.
 downgrade by any one rating agency , depending on agency 2019s relative ratings of firm at time downgrade , may have impact comparable to impact of downgrade by all rating agencies.
 we allocate portion of our gce to ensure make additional collateral or termination payments required in event two-notch reduction in long-term credit ratings , collateral not called by counterparties  but available to them.
 table below presents additional collateral or termination payments related to net derivative liabilities under bilateral agreements could have been called at reporting date by counterparties in event of one-notch and two-notch downgrade in credit ratings.
 in millions 2013 2012 additional collateral or termination payments for a one-notch downgrade $ 911 $ 1534 additional collateral or termination payments for two-notch downgrade 2989 2500 cash flows as global financial institution , our cash flows complex bear little relation to net earnings net assets.
 believe traditional cash flow analysis less meaningful in evaluating our liquidity position than excess liquidity and asset-liability management policies described above.
 cash flow analysis may  be helpful in highlighting macro trends strategic initiatives in our businesses.
 year ended december 2013.
cash equivalents decreased by $ 11. 54 billion to $ 61. 13 billion end of 2013.
 generated $ 4. 54 billion net cash from operating activities.
 used net cash $ 16. 08 billion for investing financing activities primarily fund loans investment repurchases of common stock.
 year ended december 2012.
 cash equivalents increased $ 16. 66 billion to $ 72. 67 billion end of 2012.
 generated $ 9. 14 billion net cash from operating investing activities.
 generated $ 7. 52 billion net cash from financing activities increase in bank deposits offset by net repayments of unsecured secured long-term borrowings.
 year ended december 2011.
 cash equivalents increased by $ 16. 22 billion to $ 56. 01 billion end of 2011.
 generated $ 23. 13 billion net cash from operating investing activities.
 used net cash $ 6. 91 billion for financing activities primarily repurchases of series g preferred stock common stock partially offset by increase bank deposits.
 goldman sachs 2013 annual report 89

in millions                                                             | as of december 2013 | as of december 2012
----------------------------------------------------------------------- | ------------------- | -------------------
additional collateral or termination payments for a one-notch downgrade | $ 911               | $ 1534
additional collateral or termination payments for a two-notch downgrade | 2989                | 2500


notes to consolidated financial statements in march 2008 , fasb issued guidance requires entities to provide greater transparency about ( a ) how why entity uses derivative instruments , b ) how derivative instruments and related hedged items are accounted  ( c ) how derivative instruments related hedged items affect entity 2019s financial position , results of operations , cash flows.
 guidance effective on january 1 , 2009.
 adoption guidance not material impact on consolidated financial statements.
 in june 2009 , fasb issued guidance on accounting for transfers of financial assets.
 guidance amends components of existing guidance governing sale accounting, including recog- nition of assets obtained and liabilities assumed result of transfer , considerations of effective control by transferor over transferred assets.
 in guidance removes exemption for qualifying special purpose entities from consolidation guidance.
 guidance effective january 1 , 2010  early adoption prohibited.
 amended guidance governing sale accounting applied on prospec- tive basis removal of qualifying special purpose entity exception will require to evaluate certain entities for consolidation.
 evaluating effect of adoption of this guidance  currently believe its adoption will not have material impact on consolidated financial statement.
 in june 2009  fasb amended guidance for determin- ing whether entity is a variable interest entity , or vie  requires performance of qualitative than quantitative analysis to determine primary beneficiary of vie.
 under this guidance  entity required to consolidate a vie if it has ( i ) power to direct activities that significantly impact entity 2019s economic performance and ii ) obligation to absorb losses of vie or right to receive benefits from the vie could significant to vie.
 guidance effective for first annual reporting period begins after november 15 , 2009 , early adoption prohibited.
currently evaluating effect of adoption of this guidance  believe its adoption will not have material impact on our consoli- dated financial statements.
 note 3 / property acquisitions 2009 acquisitions during 2009  acquired sub-leasehold positions at 420 lexington avenue for aggregate purchase price of approximately $ 15. 9 million.
 2008 acquisitions in february 2008 through joint venture with jeff sutton acquired properties at 182 broadway and 63 nassau street for approximately $ 30. 0 million aggregate.
 properties adjacent to 180 broadway acquired in august 2007.
 part of acquisition closed on $ 31. 0 million loan bears interest at 225 basis points over 30-day libor.
 loan has three-year term and two one-year extensions.
 drew down $ 21. 1 mil- lion at closing to pay balance of acquisition costs.
 second quarter of 2008 through joint ven- ture with nysters  acquired interests in fee positions at 919 third avenue for approximately $ 32. 8 million.
 joint venture controls entire fee position.
 2007 acquisitions in january 2007 acquired reckson for approximately $ 6. 0 billion , inclusive of transaction costs.
 sold approximately $ 2. 0 billion of reckson assets to asset purchasing venture led by reckson 2019s former executive management.
 transaction included acquisition of 30 properties encompassing approximately 9. 2 million square feet  of five properties encompassing approxi- mately 4. 2 million square feet located in manhattan.
 following summarizes allocation of purchase price to assets and liabilities acquired from reckson ( in thousands ) :.

land                                  | $ 766727
------------------------------------- | ---------
building                              | 3724962
investment in joint venture           | 65500
structured finance investments        | 136646
acquired above-market leases          | 24661
other assets net of other liabilities | 30473
acquired in-place leases              | 175686
assets acquired                       | 4924655
acquired below-market leases          | 422177
minority interest                     | 401108
liabilities acquired                  | 823285
net assets acquired                   | $ 4101370


gain on land sales derived from sales undeveloped land owned by us.
 pursue opportunities to dispose of land in markets with high concentration undeveloped land markets where land no longer meets our strategic development plans.
 increase partially attributable to land sale to current corporate tenant for potential future expansion.
 recorded $ 424000 and $ 560000 of impairment charges associated with contracts to sell land parcels for years ended december 31 , 2004 and 2003.
 only one parcel on recorded impairment charges still owned by us.
 anticipate selling this parcel in first quarter of 2005.
 discontinued operations classified operations of 86 buildings as discontinued operations as of december 31 , 2004.
 86 buildings consist of 69 industrial 12 office five retail properties.
 classified net income from operations  net of minority interest of $ 1. 6 million , $ 6. 3 million and $ 10. 7 million as net income from discontinued operations for years ended december 31, 2004 2003 2002.
 41 of properties classified in discontinued operations sold during 2004 42 properties sold during 2003 two properties sold during 2002 one operating property classified as held-for-sale at december 31 , 2004.
 gains on disposal of properties net of impairment adjustment minority interest of $ 23. 9 million and $ 11. 8 million for years ended december 31 , 2004 and 2003 also reported in discontinued operations.
 for year ended december 31  2002 $ 4. 5 million loss on disposal of properties net of impairment adjustments minority interest reported in discontinued operations due to impairment charges of $ 7. 7 million recorded on three properties in 2002 later sold in 2003 and 2004.
comparison of year ended december 31 , 2003 to december 31 , 2002 rental income from continuing operations increased from $ 652. 8 million in 2002 to $ 689. 3 million in 2003.
 following table reconciles rental income by reportable segment to total reported rental income from continuing operations for years ended december 31 , 2003 and 2002 ( in thousands ) :.
 three reportable segments rental operations ( office , industrial and retail ) all within real estate industry not necessarily affected by same economic and industry conditions.
 for retail segment experienced high occupancies strong overall performance during 2003 office and industrial segments reflected weaker economic environment for property types.
 primary causes of increase in rental income from continuing operations segment summarized below : during 2003  in-service occupancy improved from 87. 1% (. 1 % ) end of 2002 to 89. 3% ( 89. 3 % ) at end of 2003.
 second half of 2003 highlighted by significant increase in industrial portfolio occupancy of 2. 1% ( 2. 1 % ) slight increase in office portfolio occupancy of 0. 9% ( 0. 9 % ).
 lease termination fees totaled $ 27. 4 million in 2002 compared to $ 16. 2 million in 2003.
 most of decrease attributable to office segment  recognized $ 21. 1 million of termination fees in 2002 compared to $ 11. 8 million in 2003.
 lease termination fees relate to specific tenants pay fee to terminate lease obligations before end of contractual lease term.
 high volume of termination fees in 2002 reflective of contraction of business of large office users desire to downsize use of office space.
 decrease in termination fees for 2003 indicative of improving economy more stable financial position of tenants.
 during year ended 2003  acquired $ 232 million of properties totaling 2. 1 million square feet.
acquisitions primarily class office buildings in markets occupancy near 90% ( 90 % ).
 revenues acquisitions totaled $ 11. 9 million in 2003.
 revenues from 2002 acquisitions totaled $ 15. 8 million in 2003 compared to $ 4. 8 million in 2002.
 increase primarily due to large office acquisition closed end of december 2002.
 25cf developments in-service in 2003 provided revenues $ 6. 6 million revenues in-service 2002 totaled $ 13. 7 million in 2003 compared to $ 4. 7 million in 25cf proceeds from dispositions for rental properties totaled $ 126. 1 million in 2003 compared to $ 40. 9 million in 2002.
 properties generated revenue $ 12. 5 million in 2003 versus $ 19. 6 million in 2002.
 equity in earnings of unconsolidated companies represents ownership share of net income from investments unconsolidated companies.
 joint ventures own operate rental properties hold land for development.
 earnings decreased from $ 27. 2 million in 2002 to $ 23. 7 million in 2003.
 decrease result of significant activity

| 2003     | 2002
---------- | -------- | --------
office     | $ 419962 | $ 393810
industrial | 259762   | 250391
retail     | 5863     | 4733
other      | 3756     | 3893
total      | $ 689343 | $ 652827


american tower corporation subsidiaries notes to consolidated financial statements 2014 ( continued ) 3. 00% ( 3. 00 % ) convertible notes 2014during years ended december 31 , 2008 2007  company issued aggregate approximately 8. 9 million and 973 shares of common stock  upon conversion of $ 182. 8 million and $ 0. 02 million principal amount  of 3. 00% ( 3. 00 % ) notes.
 terms indenture holders of 3. 00% ( 3. 00 % ) notes entitled to receive 48. 7805 shares of common stock for every $ 1000 principal amount of notes converted.
 conversions in 2008  company paid holders aggregate approximately $ 4. 7 million  calculated based on discounted value future interest payments on notes reflected in loss on retirement of long-term obligations in consolidated statement of operations for year ended december 31 , 2008.
 14.
 impairments , net loss on sale of long-lived assets , restructuring merger related expense significant components reflected in impairments  net loss on sale of long-lived assets restructuring merger related expense consolidated statements of operations include : impairments net loss on sale of long-lived assets 2014during years ended december 31 , 2008 , 2007 2006  company recorded impairments net loss on sale of long-lived assets related to rental management segment ) of $ 11. 2 million , $ 9. 2 million $ 2. 6 million , respectively.
 during years ended december 31 , 2008  2007 2006 company recorded net losses associated with sales of certain non-core towers other assets impairment charges to write-down certain assets to net realizable value after indicator of impairment identified.
 company recorded net losses and impairments of approximately $ 10. 5 million , $ 7.1 million $ 2. 0 million for years ended december 31 , 2008 , 2007 2006  respectively.
 net loss for year ended december 31 , 2008 net losses from asset sales other impairments of $ 10. 7 million  offset by gains from asset sales of $ 0. 2 million.
 net loss for year ended december 31 , 2007 net losses from asset sales other impairments of $ 7. 8 million  offset by gains from asset sales of $ 0. 7 million.
 merger related expense 2014during year ended december 31 , 2005  company assumed obligations merger with spectrasite , inc. primarily related to employee separation costs of former spectrasite employees.
 severance payments to former spectrasite , inc.
 employees subject to plans agreements established by spectrasite .
 assumed by company merger.
 costs recognized as assumed liability in purchase price allocation.
 company incurred merger related costs for additional employee retention separation costs year ended december 31 , 2006.
 following table displays activity respect accrued liability for years ended december 31 , 2008  2007 2006 ( in thousands ) : liability december 31 , expense 2006 cash payments other liability december 31  expense 2007 cash payments liability 31 2008 cash payments employee separations.
.
.
.
 $ 20963 $ 496 $ ( 12389 ) $ ( 1743 ) $ 7327 $ 633 $ ( 6110 ) $ ( 304 ) $ 1546 $ 284 $ ( 1901 ) $ 71 2014 as of december 31 , 2008  company had paid all merger related liabilities.
 american tower corporation subsidiaries notes to consolidated financial statements 2014 ( ) 3. 00% ( 3.00 % ) convertible notes 2014during years ended december 31 , 2008 and 2007  company issued approximately 8. 9 million and 973 shares of common stock upon conversion of $ 182. 8 million and $ 0. 02 million principal amount  of 3. 00% ( 3. 00 % ) notes.
 terms indenture holders of 3. 00% ( 3. 00 % ) notes entitled to receive 48. 7805 shares of common stock for every $ 1000 principal amount of notes converted.
 conversions in 2008  company paid holders aggregate approximately $ 4. 7 million  calculated based on discounted value future interest payments on notes reflected in loss on retirement of long-term obligations in consolidated statement of operations for year ended december 31 , 2008.
 14.
 impairments , net loss on sale of long-lived assets , restructuring merger related expense significant components reflected in impairments  net loss on sale of long-lived assets  restructuring merger related expense statements operations include : impairments and net loss on sale of long-lived assets 2014during years ended december 31 , 2008 , 2007 2006  company recorded impairments and net loss on sale of long-lived assets related to rental and management segment ) of $ 11. 2 million , $ 9. 2 million $ 2. 6 million , respectively.
 during years ended december 31 , 2008 , 2007 2006 company recorded net losses associated with sales of certain non-core towers and other assets impairment charges to write-down certain assets to net realizable value after indicator of impairment identified.
 company recorded net losses and impairments of approximately $ 10. 5 million , $ 7. 1 million and $ 2.0 million for years ended december 31 , 2008 , 2007 2006  respectively.
 net loss for year ended december 31 , 2008 net losses from asset sales other impairments of $ 10. 7 million  offset by gains from asset sales $ 0. 2 million.
 net loss year ended december 31 , 2007 net losses from asset sales other impairments $ 7. 8 million  offset by gains from asset sales $ 0. 7 million.
 merger related expense 2014during year ended december 31 , 2005 company assumed obligations merger with spectrasite , inc. primarily related to employee separation costs of former spectrasite employees.
 severance payments to former spectrasite , inc.
 employees subject to plans agreements established by spectrasite  inc.
 assumed by company merger.
 costs recognized as assumed liability in purchase price allocation.
 company incurred merger related costs for additional employee retention separation costs year ended december 31 , 2006.
 table displays activity accrued liability for years ended december 31 , 2008 , 2007 2006 ( in thousands ) : liability december 31 , expense 2006 cash payments other liability december 31  expense 2007 cash payments other liability december 31 expense 2008 cash payments liability 31  employee separations.
.
.
.
 $ 20963 $ 496 $ ( 12389 ) $ ( 1743 ) $ 7327 $ 633 $ ( 6110 ) $ ( 304 ) $ 1546 $ 284 $ ( 1901 ) $ 71 2014 as of december 31 , 2008  company had paid all merger related liabilities.

employee separations | liability as of december 31 2005 $ 20963 | 2006 expense $ 496 | 2006 cash payments $ -12389 ( 12389 ) | other $ -1743 ( 1743 ) | liability as of december 31 2006 $ 7327 | 2007 expense $ 633 | 2007 cash payments $ -6110 ( 6110 ) | other $ -304 ( 304 ) | liability as of december 31 2007 $ 1546 | 2008 expense $ 284 | 2008 cash payments $ -1901 ( 1901 ) | other $ 71 | liability as of december 31 2008 2014
-------------------- | ---------------------------------------- | ------------------ | ------------------------------------- | ---------------------- | --------------------------------------- | ------------------ | ----------------------------------- | -------------------- | --------------------------------------- | ------------------ | ----------------------------------- | ---------- | -------------------------------------


diluted earnings per share calculation excludes stock options  sars  restricted stock units performance units stock anti-dilutive.
 shares underlying excluded stock options sars totaled 2. 6 million  10. 3 million 10. 2 million for years ended december 31 , 2017 , 2016 2015  respectively.
 for year ended december 31 , 2016  4. 5 million shares of restricted stock units performance units stock excluded.
.
 supplemental cash flow information net cash paid for interest income taxes was for years ended december 31, 2017 , 2016 2015 ( in thousands ) :.
 eog's accrued capital expenditures at december 31 , 2017 , 2016 2015 were $ 475 million, $ 388 million $ 416 million  respectively.
 non-cash investing activities for year ended december 31 , 2017 included non-cash additions of $ 282 million to eog's oil and gas properties property exchanges.
 non-cash investing activities for year ended december 31, 2016 included $ 3834 million in non-cash additions to oil and gas properties related to yates transaction ( see note 17 ).
.
 business segment information eog's operations are all crude oil and natural gas exploration production related.
 segment reporting topic of asc establishes standards for reporting information about operating segments in annual financial statements.
 operating segments defined as components of enterprise about separate financial information available evaluated by chief operating decision maker group in deciding allocate resources assessing performance.
 chief operating decision-making process informal involves chairman of board chief executive officer other key officers.
 group reviews makes operating decisions related to significant issues associated with eog's major producing areas in united states  trinidad  united kingdom china.
segment reporting purposes , chief operating decision maker considers major united states producing areas one operating segment.

| 2017     | 2016               | 2015
------------------------------------ | -------- | ------------------ | --------
interest net of capitalized interest | $ 275305 | $ 252030           | $ 222088
income taxes net of refunds received | $ 188946 | $ -39293 ( 39293 ) | $ 41108


humana inc.
 notes to consolidated financial statements 2014 continued not be estimated based on observable market prices unobservable inputs used.
 for auction rate securities  valuation methodologies include consideration of quality of sector and issuer  underlying collateral underlying final maturity dates liquidity.
 recently accounting no recently issued accounting standards apply to or material impact on results of operations  financial condition or cash flows.
 3.
 acquisitions on december 21 , 2012  acquired metropolitan health networks , inc. metropolitan medical services organization mso coordinates medical care for medicare advantage beneficiaries and medicaid recipients primarily in florida.
 paid $ 11. 25 per share in cash to acquire all outstanding shares of metropolitan repaid all outstanding debt metropolitan for transaction value of $ 851 million  plus transaction expenses.
 preliminary fair values of metropolitan 2019s assets acquired and liabilities assumed at date of acquisition summarized as : metropolitan ( in millions ).
 goodwill assigned to health and well-being services segment not deductible for tax purposes.
 other intangible assets  primarily of customer contracts and trade names have weighted average useful life of 8. 4 years.
 on october 29 , 2012 acquired noncontrolling equity interest in mcci holdings , llc  mcci privately held mso in miami , florida coordinates medical care for medicare advantage and medicaid beneficiaries primarily in florida and texas.
 metropolitan and mcci transactions expected to provide with components of successful integrated care delivery model demonstrated scalability to new markets.
 substantial portion of revenues for both metropolitan and mcci derived from services provided to humana medicare advantage members under capitation contracts with our health plans.
, metropolitan and mcci provide services to medicare advantage and medicaid members under capitation contracts with third party health plans.
 under these capitation agreements with health metropolitan mcci assume financial risk associated with these medicare advantage medicaid members.

| metropolitan ( in millions )
--------------------------- | ----------------------------
cash and cash equivalents   | $ 49
receivables net             | 28
other current assets        | 40
property and equipment      | 22
goodwill                    | 569
other intangible assets     | 263
other long-term assets      | 1
total assets acquired       | 972
current liabilities         | -22 ( 22 )
other long-term liabilities | -99 ( 99 )
total liabilities assumed   | -121 ( 121 )
net assets acquired         | $ 851


z i m m e r h o l d i n g s , i n c.
 a n d s u b s i d i a r i e s 2 0 0 4 f o r m 1 0 - k contractual obligations company entered into contracts with third parties business require future payments.
 table illustrates company 2019s contractual obligations : 2006 2008 2010 contractual obligations total 2005 2007 2009.
 critical accounting estimates financial results company affected by provisions for income taxes for all periods selection application of accounting policies and methods.
 jurisdictions subject to review or audit.
 significant accounting policies require management 2019s commitments and contingencies 2013 accruals for judgment discussed below.
 product liability other claims established with excess inventory and instruments 2013 company internal and external legal counsel based on current must determine each balance sheet date how much  if information historical settlement information for claims  of inventory may prove to be unsaleable or related fees for claims incurred but not reported.
 unsaleable at carrying cost.
 company must actuarial model used to assist determine if instruments on hand will be put to management in determining appropriate level of accruals productive use or remain undeployed result of excess for product liability claims.
 historical patterns of claim loss supply.
 reserves established to adjust development over time statistically analyzed to arrive at inventory and instruments to net realizable value.
 factors applied to loss estimates determine appropriate level of reserves  company actuarial model.
 evaluates current stock levels in relation to historical management 2019s best estimate of ultimate costs expected patterns of demand for all products incur under various contingencies.
 instrument systems and components.
basis for goodwill intangible assets 2013 company determination same for all inventory evaluates carrying value of goodwill indefinite life instrument items categories except for work-in-progress intangible assets annually or whenever events or inventory  recorded at cost.
 obsolete or circumstances indicate carrying value may not be discontinued items generally destroyed completely recoverable.
 company evaluates carrying value of written off.
 management evaluates need for changes to finite life intangible assets whenever events or circumstances valuation reserves based on market conditions competitive indicate carrying value may not be recoverable.
 offerings other factors regular basis.
 significant assumptions required to estimate fair income taxes 2013 company estimates income tax value of goodwill intangible assets notably expense income tax liabilities assets by taxable estimated future cash flows generated by assets.
 jurisdiction.
 realization of deferred tax assets each taxable changes to assumptions could result in company jurisdiction dependent on company 2019s ability to required to record impairment charges on assets.
 generate future taxable income sufficient to realize benefits.
 company evaluates deferred tax assets on recent accounting pronouncements ongoing basis provides valuation allowances if information about recent accounting pronouncements determined to 2018 2018more likely than not 2019 deferred tax included in note 2 to consolidated financial statements benefit will not be realized.
 federal income taxes included under item 8.
 provided on portion of income of foreign subsidiaries expected to be remitted to u.
 company operates within numerous taxing jurisdictions.
 company subject to regulatory review or audit in all jurisdictions reviews audits may require extended periods time to resolve.
 company makes use of all available information makes reasoned judgments regarding matters requiring interpretation in establishing tax expense  liabilities reserves.
 company believes

contractual obligations       | total    | 2005   | 2006 and 2007 | 2008 and 2009 | 2010 and thereafter
----------------------------- | -------- | ------ | ------------- | ------------- | -------------------
debt obligations              | $ 651.5  | $ 27.5 | $ 449.0       | $ 175.0       | $ 2013
operating leases              | 103.0    | 23.5   | 34.2          | 17.7          | 27.6
purchase obligations          | 16.1     | 15.5   | 0.6           | 2013          | 2013
other long-term liabilities   | 420.9    | 2013   | 135.7         | 30.5          | 254.7
total contractual obligations | $ 1191.5 | $ 66.5 | $ 619.5       | $ 223.2       | $ 282.3


management 2019s discussion analysis table below presents reconciliation of common shareholders 2019 equity to estimated basel iii advanced cet1 on fully phased-in basis.
 $ in millions december.
 1.
 this deduction  represents fully phased-in requirement is amount investments in capital of nonconsolidated financial institutions exceed certain prescribed thresholds.
 during transitional period thereafter no deduction required if applicable proportion of investments in capital institutions falls below prescribed thresholds.
 2.
 includes credit valuation adjustments on derivative liabilities debt valuation adjustments other required credit risk- based deductions.
 beginning with first quarter of 2015  subject to transitional provisions required to disclose ratios calculated under standardized approach.
 estimated cet1 ratio under standardized approach standardized cet1 ratio ) on fully phased-in basis was approximately 60 basis points lower than estimated basel iii advanced cet1 ratio in table above.
 both basel iii advanced cet1 ratio and standardized cet1 ratio subject to transitional provisions.
 transitional provisions effective january 1 , 2014  estimated basel iii advanced cet1 ratio and estimated standardized cet1 ratio are approximately 150 basis points higher than respective cet1 ratios on fully phased-in basis as of december 2013.
 effective january 1 , 2014  group inc. 2019s capital and leverage ratios calculated under , subject to minimums as defined in , revised capital framework.
 changes to definition of capital and minimum ratios  subject to transitional provisions effective beginning january 1 , 2014.
 rwas based on basel i adjusted , as defined in note 20 to consolidated financial statements.
 firm will transition to basel iii beginning on april 1 , 2014.
impact of changes to definition of regulatory capital reflecting transitional provisions effective in 2014  our estimated cet1 ratio ( cet1 to rwas on basel i adjusted basis ) as of december 2013 essentially unchanged compared to tier 1 common ratio under basel i.
 regulatory leverage ratios.
 revised capital framework increased minimum tier 1 leverage ratio to us from 3% ( 3 % ) to 4% ( 4 % ) effective january 1 , 2014.
 revised capital framework new tier 1 supplementary leverage ratio ( supplementary leverage ratio ) for advanced approach banking organizations.
 supplementary leverage ratio compares tier 1 capital ( defined under revised capital framework ) to measure of leverage exposure , defined as sum of firm 2019s assets less certain cet1 deductions plus certain off-balance-sheet exposures  including measure of derivatives exposures and commitments.
 revised capital framework requires minimum supplementary leverage ratio of 3% ( 3 % ) , effective january 1 , 2018  disclosure required beginning in first quarter of 2015.
 subsequent to approval of revised capital framework agencies issued proposal to increase minimum supplementary leverage ratio requirement for largest u. s.
 banks ( global systemically important banking institutions ( g-sibs ) under basel g-sib framework ).
 proposals require firm and other g-sibs to meet 5% ( 5 % ) supplementary leverage ratio ( of minimum requirement of 3% ( 3 % ) plus 2% ( 2 % ) buffer ).
 as of december 2013  estimated supplementary leverage ratio based on revised capital framework approximates this proposed minimum.
 basel committee finalized revisions increase size of leverage exposure for supplementary leverage ratio but retain minimum supplementary leverage ratio requirement of 3% ( 3 % ).
 not known with certainty whether u. s.
regulators adopt revised definition of leverage rules proposals for supplementary leverage ratio.
 70 goldman sachs 2013 annual report

$ in millions                                                               | as of december 2013
--------------------------------------------------------------------------- | -------------------
common shareholders 2019 equity                                             | $ 71267
goodwill                                                                    | -3705 ( 3705 )
identifiable intangible assets                                              | -671 ( 671 )
deferred tax liabilities                                                    | 908
goodwill and identifiable intangible assets net of deferred tax liabilities | -3468 ( 3468 )
deductions for investments in nonconsolidated financial institutions1       | -9091 ( 9091 )
otheradjustments2                                                           | -489 ( 489 )
basel iii cet1                                                              | $ 58219
basel iii advanced rwas                                                     | $ 594662
basel iii advanced cet1 ratio                                               | 9.8% ( 9.8 % )


changes in gross unrecognized tax benefits for year ended december 29 , 2007:.
 as of december 29 , 2007  $ 228. 4 million of unrecognized tax benefits would if recognized reduce effective tax rate  compared to $ 232. 1 million as of december 31 , 2006  first day cadence 2019s fiscal year.
 total interest and penalties recognized in consolidated income statement for year ended december 29 , 2007 resulted in net tax benefits of $ 11. 1 million and $ 0. 4 million  primarily due to effective settlement of tax audits year.
 total gross accrued interest and penalties recognized in consolidated balance sheets as of december 29, 2007 were $ 47. 9 million and $ 9. 7 million  compared to $ 65. 8 million and $ 10. 1 million  as of december 31 , 2006.
 9.
 acquisitions for acquisitions results of operations estimated fair value of assets acquired liabilities assumed included in cadence 2019s consolidated financial statements from date of acquisition.
 comparative pro forma financial information for all 2007 , 2006 2005 acquisitions not presented because results of operations not material to cadence 2019s consolidated financial statements.
 2007 acquisitions during 2007  cadence acquired invarium , inc. san jose-based developer of advanced lithography-modeling pattern-synthesis technology and clear shape technologies , inc. san jose-based design technology company solutions minimize yield loss for semiconductor integrated circuits.
 cadence acquired these two companies for aggregate purchase price of $ 75. 5 million  included payment of cash , fair value of assumed options and acquisition costs.
 $ 45. 7 million of goodwill recorded connection with these acquisitions not expected to be deductible for income tax purposes.
 prior to acquiring clear shape technologies  inc. cadence had investment of $ 2. 0 million in company representing 12% ( % ) ownership interest accounted for under cost method of accounting.
 with sfas.
 141 , 201cbusiness combinations 201d cadence accounted for this acquisition as step acquisition.
 subsequent adjustments to purchase price of acquired companies included in 201cother 201d line of changes of goodwill table in note 10 below.
 2006 acquisition in march 2006 cadence acquired company for aggregate initial purchase price of $ 25. 8 million  included payment of cash fair value of assumed options acquisition costs.
 preliminary allocation of purchase price recorded as $ 17. 4 million of goodwill, $ 9. 4 million of identifiable intangible assets $ ( 1. 0 ) million of net liabilities.
 $ 17. 4 million of goodwill acquisition not expected to be deductible for income tax purposes.
 subsequent adjustments to purchase price acquired company included in 201cother 201d line of changes of goodwill table in note 10 below.

| ( in thousands )
--------------------------------------------------------------------------------------------------------------------- | ----------------
balance as of december 31 2006                                                                                | $ 337226
gross amount of the decreases in unrecognized tax benefits of tax positions taken during a prior year                 | -31608 ( 31608 )
gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 7764
amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities                      | -6001 ( 6001 )
reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations             | -511 ( 511 )
balance as of december 29 2007                                                                                | $ 306870


18 2015 annual report performance graph chart presents comparison for five-year period ended june 30 , 2015  of market performance of company 2019s common stock with s&p 500 index and index of peer companies selected company : comparison of 5 year cumulative total return among jack henry & associates , inc. s&p 500 index  peer group information depicts line graph with values:.
 comparison assumes $ 100 invested on june 30 , 2010  assumes reinvestments of dividends.
 total returns calculated according to market capitalization of peer group members beginning of each period.
 peer companies selected providing specialized computer software  hardware related services to financial institutions other businesses.
 companies in peer group are aci worldwide , inc. bottomline technology , inc. broadridge financial solutions  cardtronics , inc. convergys corp. corelogic , inc. dst systems , inc. euronet worldwide , inc. fair isaac corp. fidelity national information services , inc. fiserv , inc. global payments , inc. heartland payment systems  inc. moneygram international  inc. ss&c technologies holdings , inc. total systems services , inc. tyler technologies  inc. verifone systems , inc. wex , inc.
 micros systems , inc.
 removed from peer group as acquired in september 2014.

| 2010   | 2011   | 2012   | 2013   | 2014   | 2015
---------- | ------ | ------ | ------ | ------ | ------ | ------
jkhy       | 100.00 | 127.44 | 148.62 | 205.60 | 263.21 | 290.88
peer group | 100.00 | 136.78 | 148.10 | 174.79 | 239.10 | 301.34
s&p 500    | 100.00 | 130.69 | 137.81 | 166.20 | 207.10 | 222.47


goldman sachs group , inc.
 subsidiaries management 2019s discussion and analysis 2018 versus 2017.
 provision for credit losses in consolidated statements of earnings was $ 674 million for 2018  compared with $ 657 million for 2017  higher provision for credit losses related to consumer loan growth in 2018 partially offset by impairment of approximately $ 130 million on secured loan in 2017.
 2017 versus 2016.
 provision for credit losses in consolidated statements of earnings was $ 657 million for 2017  compared with $ 182 million for 2016  reflecting increase in impairments included impairment of approximately $ 130 million on secured loan in 2017 higher provision for credit losses related to consumer loan growth.
 operating expenses influenced by compensation , headcount levels business activity.
 compensation and benefits includes salaries  discretionary compensation  amortization of equity awards other items benefits.
 discretionary compensation impacted by level net revenues  overall financial performance  prevailing labor markets business mix structure of share-based compensation programs external environment.
 see 201cuse of estimates 201d for further information about expenses from litigation and regulatory proceedings.
 table below presents operating expenses by line item and headcount.
 reclassifications made to previously reported amounts to conform to current presentation : 2030 regulatory-related fees paid to exchanges now reported in brokerage , clearing , exchange and distribution fees.
 previously amounts reported in other expenses.
 2030 headcount consists of employees excludes consultants and temporary staff previously reported as part of total staff.
 expenses related to these consultants and temporary staff now reported in professional fees.
 previously such amounts reported in compensation and benefits expenses.
 2018 versus 2017.
 operating expenses in consolidated statements of earnings were $ 23.46 billion for 2018 12% ( 12 % ) higher than 2017.
 efficiency ratio ( total operating expenses divided by total net revenues ) for 2018 was 64. 1% ( 64. 1 % )  compared with 64. 0% ( 64. 0 % ) for 2017.
 increase in operating expenses 2017 due to higher compensation benefits expenses improved operating performance higher net provisions for litigation regulatory proceedings.
 brokerage  clearing  exchange distribution fees higher increase in activity levels technology expenses increased higher expenses computing services.
 expenses to consolidated investments digital lending and deposit platform increased increases primarily in depreciation and amortization expenses market development expenses other expenses.
 increase compared with 2017 included $ 297 million related to recently adopted revenue recognition standard.
 see note 3 to consolidated financial statements for information.
 2014-09 201crevenue from contracts with customers ( topic 606 ). net provisions for litigation regulatory proceedings for 2018 were $ 844 million compared with $ 188 million for 2017.
 2018 included $ 132 million charitable contribution to goldman sachs gives donor-advised fund.
 compensation reduced to fund charitable contribution.
 ask participating managing directors to make recommendations regarding potential charitable recipients for contribution.
 of december 2018 headcount increased 9% ( 9 % ) compared with december 2017 increase in technology professionals investments in new business initiatives.
 2017 versus 2016.
 operating expenses in consolidated statements of earnings were $ 20. 94 billion for 2017 3% ( 3 % ) higher than 2016.
 efficiency ratio for 2017 was 64. 0% ( 64. 0 % ) compared with 65. 9% ( 65. 9 % ) for 2016.
 increase in operating expenses 2016 driven by higher compensation and benefits expenses investments to fund growth.
higher expenses related to consolidated investments digital lending deposit platform primarily included in depreciation amortization expenses market development expenses other expenses.
 technology expenses increased reflecting higher expenses related to cloud-based services software depreciation professional fees increased primarily related to consulting costs.
 increases partially offset by lower net provisions for litigation regulatory proceedings lower occupancy expenses ( related to exit costs in 2016 ).
 54 goldman sachs 2018 form 10-k

$ in millions                                     | year ended december 2018 | year ended december 2017 | year ended december 2016
------------------------------------------------- | ------------------------ | ------------------------ | ------------------------
compensation and benefits                         | $ 12328                  | $ 11653                  | $ 11448
brokerage clearing exchange and distribution fees | 3200                     | 2876                     | 2823
market development                                | 740                      | 588                      | 457
communications and technology                     | 1023                     | 897                      | 809
depreciation and amortization                     | 1328                     | 1152                     | 998
occupancy                                         | 809                      | 733                      | 788
professional fees                                 | 1214                     | 1165                     | 1081
other expenses                                    | 2819                     | 1877                     | 1900
total operating expenses                          | $ 23461                  | $ 20941                  | $ 20304
headcount atperiod-end                            | 36600                    | 33600                    | 32400


performance graph comparison of five-year cumulative total return graph table compare cumulative total return citi 2019s common stock , listed on nyse under ticker symbol 201cc 201d held by 77787 common stockholders record as of january 31 , 2017 , with cumulative total return s&p 500 index s&p financial index over five-year period through december 31 , 2016.
 graph table assume $ 100 invested on december 31 , 2011 in citi 2019s common stock  s&p 500 index s&p financial index  all dividends reinvested.
 comparison of five-year cumulative total return for years ended date citi s&p 500 financials.

date        | citi  | s&p 500 | s&p financials
----------- | ----- | ------- | --------------
31-dec-2011 | 100.0 | 100.0   | 100.0
31-dec-2012 | 150.6 | 116.0   | 128.8
31-dec-2013 | 198.5 | 153.6   | 174.7
31-dec-2014 | 206.3 | 174.6   | 201.3
31-dec-2015 | 197.8 | 177.0   | 198.2
31-dec-2016 | 229.3 | 198.2   | 243.4