note 8 2013 debt long-term debt consisted following ( in millions ) :.
 december 2012  issued notes totaling $ 1. 3 billion fixed interest rate of 4. 07% ( 4. 07 % ) maturing december 2042 ( new notes ) exchange for outstanding notes totaling $ 1. 2 billion interest rates from 5. 50% ( 5. 50 % ) to 8. 50% ( 8. 50 % ) maturing 2023 to 2040 ( old notes ).
 connection exchange  paid premium of $ 393 million $ 225 million paid in cash $ 168 million in form of new notes.
 premium , in addition to $ 194 million in remaining unamortized discounts related to old notes amortized as additional interest expense over term new notes using effective interest method.
 may  option redeem some or all new notes by paying principal amount of notes redeemed plus make-whole premium and accrued and unpaid interest.
 interest on new notes payable on june 15 and december 15 of each year  beginning june 15 , 2013.
 new notes are unsecured senior obligations rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness.
 september 9 , 2011  issued $ 2. 0 billion of long-term notes in registered public offering $ 500 million maturing in 2016 fixed interest rate of 2. 13% ( 2. 13 % ), $ 900 million maturing in 2021 fixed interest rate of 3. 35% ( 3. 35 % ) , $ 600 million maturing in 2041 fixed interest rate of 4. 85% ( 4. 85 % ).
 may option redeem some or all notes by paying principal amount of notes redeemed plus make-whole premium and accrued and unpaid interest.
 interest on notes payable on march 15 and september 15 of each year  beginning march 15 , 2012.
in october 2011 , used portion proceeds to redeem all $ 500 million long-term notes maturing in 2013.
 in 2011  repurchased $ 84 million of long-term notes through open-market purchases.
 paid premiums of $ 48 million in connection with early extinguishments of debt  recognized in other non-operating income ( expense )  net.
 august 2011  entered into $ 1. 5 billion revolving credit facility with group of banks terminated existing $ 1. 5 billion revolving credit facility was to expire in june 2012.
 credit facility expires august 2016, may request banks may grant  at discretion increase to credit facility by additional amount up to $ 500 million.
 no borrowings outstanding under either facility through december 31 , 2012.
 borrowings under credit facility unsecured and bear interest at rates based  our option on eurodollar rate or base rate , as defined in credit facility.
 each bank 2019s obligation to make loans under credit facility subject to  compliance with various representations , warranties covenants , including covenants limiting our ability certain subsidiaries 2019 ability to encumber assets and covenant not to exceed maximum leverage ratio , as defined in credit facility.
 leverage ratio covenant excludes adjustments recognized in stockholders 2019 equity related to postretirement benefit plans.
 as of december 31 , 2012  in compliance with all covenants in credit facility  in debt agreements.
 agreements in place with banking institutions to provide for issuance of commercial paper.
 no commercial paper borrowings outstanding during 2012 or 2011.
 if to issue commercial paper  borrowings be supported by credit facility.
 during next five years scheduled long-term debt maturities of $ 150 million due in 2013 and $ 952 million due in 2016.
interest payments $ 378 million 2012 , $ 326 million 2011  $ 337 million 2010.

| 2012         | 2011
--------------------------------------------------------------------------- | ------------ | ------------
notes with rates from 2.13% ( 2.13 % ) to 6.15% ( 6.15 % ) due 2016 to 2042 | $ 5642       | $ 5308
notes with rates from 7.00% ( 7.00 % ) to 7.75% ( 7.75 % ) due 2013 to 2036 | 1080         | 1239
other debt                                                                  | 478          | 19
total long-term debt                                                        | 7200         | 6966
less : unamortized discounts                                                | -892 ( 892 ) | -506 ( 506 )
total long-term debt net of unamortized discounts                           | 6308         | 6460
less : current maturities of long-term debt                                 | -150 ( 150 ) | 2014
total long-term debt net                                                    | $ 6158       | $ 6460


repurchase of equity securities table provides information regarding our purchases of equity securities during period from october 1  2012 to december 31 , 2012.
 total number of shares units ) purchased 1 average price paid per share unit ) 2 total number of shares units ) purchased as part of publicly announced plans or programs 3 maximum number approximate dollar value ) of shares units ) be purchased under plans or programs 3.
 1 includes shares of common stock , par value $ 0. 10 per share , withheld under terms grants under employee stock-based compensation plans to offset tax withholding obligations upon vesting and release of restricted shares ( 201cwithheld shares 201d ).
 repurchased 13566 withheld shares in october 2012 , 1419 shares in november 2012 7959 withheld shares in december 2012  for total of 22944 withheld shares during three-month period.
 2 average price per share for each months fiscal quarter and three-month period calculated by dividing sum of applicable period of aggregate value of tax withholding obligations and aggregate amount paid for shares acquired under stock repurchase program  described in note 5 to consolidated financial statements , by sum of number of withheld shares and number of shares acquired in stock repurchase program.
 3 on february 24 , 2012  announced press board approved share repurchase program to repurchase up to $ 300. 0 million of common stock ( 201c2012 share repurchase program 201d )  in addition to amounts available on existing authorizations.
 on november 20 , 2012  announced press board authorized increase in 2012 share repurchase program to $ 400. 0 million of common stock.
february 22 , 2013 , announced board approved new share repurchase program to repurchase time to time up to $ 300. 0 million of our common stock.
 new authorization in addition to amounts remaining available for repurchase under 2012 share repurchase program.
 no expiration date associated with share repurchase programs.

| total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( or approximate dollar value ) of shares ( or units ) that mayyet be purchased under theplans or programs3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 13566                                         | $ 10.26                                   | 0                                                                                | $ 148858924
november 1 - 30 | 5345171                                       | $ 9.98                                    | 5343752                                                                                | $ 195551133
december 1 - 31 | 8797959                                       | $ 10.87                                   | 8790000                                                                                | $ 99989339
total           | 14156696                                      | $ 10.53                                   | 14133752                                                                                |


2022 net revenues in connected fitness operating segment increased $ 34. 2 million to $ 53. 4 million in 2015 from $ 19. 2 million 2014 due to revenues from two connected fitness acquisitions in 2015 and growth in existing connected fitness business.
 operating income ( loss ) by segment summarized below:.
 increase in total operating income driven by : 2022 operating income north america operating segment increased $ 88. 6 million to $ 461. 0 million in 2015 from $ 372. 4 million in 2014 due to items discussed above in consolidated results of operations.
 2022 operating income emea operating segment increased $ 14. 9 million to $ 3. 1 million in 2015 from loss $ 11. 8 million in 2014 due to sales growth.
 2022 operating income asia-pacific operating segment increased $ 14. 5 million to $ 36. 4 million in 2015 from $ 21. 9 million in 2014 due to sales growth.
 2022 operating loss in latin america operating segment increased $ 15. 2 million to $ 30. 6 million in 2015 from $ 15. 4 million in 2014 due to increased investments support growth region and economic challenges in brazil period.
 increase operating loss offset by sales growth above.
 2022 operating loss in connected fitness segment increased $ 48. 2 million to $ 61. 3 million in 2015 from $ 13. 1 million in 2014 due to investments to support growth in connected fitness business including impact of two connected fitness acquisitions in 2015.
 acquisitions contributed $ 23. 6 million to operating loss for connected fitness segment in 2015.
 seasonality recognized majority of net revenues and significant portion of income from operations in last two quarters of year driven by increased sales volume of products during fall selling season including higher priced cold weather products larger proportion of higher margin direct to consumer sales.
seasonality could impact on timing of accruals if sales in last two quarters year do not materialize.
 level working capital generally reflects seasonality and growth in business.
 we generally expect inventory , accounts payable certain accrued expenses to be higher in second and third quarters in preparation for fall selling season.

( in thousands )       | year ended december 31 , 2015 | year ended december 31 , 2014 | year ended december 31 , $ change | year ended december 31 , % (  % ) change
---------------------- | ----------------------------- | ----------------------------- | --------------------------------- | ----------------------------------------
north america          | $ 460961                      | $ 372347                      | $ 88614                           | 23.8% ( 23.8 % )
emea                   | 3122                          | -11763 ( 11763 )              | 14885                             | 126.5
asia-pacific           | 36358                         | 21858                         | 14500                             | 66.3
latin america          | -30593 ( 30593 )              | -15423 ( 15423 )              | -15170 ( 15170 )                  | -98.4 ( 98.4 )
connected fitness      | -61301 ( 61301 )              | -13064 ( 13064 )              | -48237 ( 48237 )                  | -369.2 ( 369.2 )
total operating income | $ 408547                      | $ 353955                      | $ 54592                           | 15.4% ( 15.4 % )


shareholder value award program svas granted to officers management payable in shares of our common stock.
 number of shares issued varies depending on our stock price at end of three-year vesting period compared to pre-established target stock prices.
 we measure fair value of sva unit on grant date using monte carlo simulation model.
 model utilizes multiple input variables determine probability of satisfying market condition in award grant calculates fair value of award.
 expected volatilities in model based on implied volatilities from traded options on stock , historical volatility of stock price  other factors.
 dividend yield based on historical experience estimate of future dividend yields.
 risk-free interest rate derived from u. s.
 treasury yield curve in effect at time of grant.
 weighted-average fair values of sva units granted during years ended december 31 , 2018 , 2017 , 2016 were $ 48. 51 , $ 66. 25 , and $ 48. 68 , respectively determined using following assumptions:.
 program approximately 0. 7 million shares , 1. 1 million shares , and 1. 0 million shares issued during years ended december 31 , 2018, 2017 , 2016 .
 approximately 1. 0 million shares expected to be issued in 2019.
 as of december 31 , 2018  total remaining unrecognized compensation cost related to nonvested svas was $ 55. 7 million  amortized over weighted-average remaining requisite service period of 20 months.
 restricted stock units rsus granted to certain employees payable in shares of our common stock.
 shares accounted for at fair value based upon closing stock price on date of grant.
 corresponding expense amortized over vesting period  typically three years.
fair values of rsu awards granted during years ended december 31 , 2018 2017 2016 were $ 70. 95 , $ 72. 47 , $ 71. 46 , respectively.
 number of shares issued for rsu program remains constant exception of forfeitures.
 1. 3 million , 1. 4 million  1. 3 million shares granted approximately 1. 0 million , 0. 9 million  0. 6 million shares issued during years ended december 31, 2018 2017 2016.
 approximately 0. 8 million shares expected to be issued in 2019.
 as of december 31 , 2018 total remaining unrecognized compensation cost related to nonvested rsus was $ 112. 2 million  amortized over weighted- average remaining requisite service period of 21 months.
 note 12 : shareholders' equity during 2018  2017  2016  repurchased $ 4. 15 billion , $ 359. 8 million $ 540. 1 million  of shares associated with share repurchase programs.
 payment of $ 60. 0 million made in 2016 for shares repurchased in 2017.
 during 2018  repurchased $ 2. 05 billion of shares completed $ 5. 00 billion share repurchase program announced in october 2013 board authorized $ 8. 00 billion share repurchase program.
 $ 2. 10 billion repurchased under $ 8. 00 billion program in 2018.
 as of december 31 , 2018  $ 5. 90 billion of shares remaining under 2018 program.
 5. 0 million authorized shares of preferred stock.
 as of december 31 , 2018 and 2017 no preferred stock issued.
 employee benefit trust held 50. 0 million shares of common stock at both december 31 , 2018 and 2017  source funds assist meeting obligations under employee benefit plans.
cost basis of shares held in trust was $ 3. 01 billion at both december 31 , 2018 and 2017 , shown as reduction of shareholders 2019 equity.
 any dividend transactions between us trust eliminated.
 stock held by trust not considered outstanding in computation of eps.
 assets trust not used to fund our obligations under employee benefit plans during years ended december 31 , 2018 , 2017 , and

( percents )            | 2018             | 2017             | 2016
----------------------- | ---------------- | ---------------- | ----------------
expected dividend yield | 2.50% ( 2.50 % ) | 2.50% ( 2.50 % ) | 2.00% ( 2.00 % )
risk-free interest rate | 2.31             | 1.38             | 0.92
volatility              | 22.26            | 22.91            | 21.68


jpmorgan chase & co. /2014 annual report 63 five-year stock performance table and graph compare five-year cumulative total return for jpmorgan chase & co.
 ( 201cjpmorgan chase 201d or 201cfirm 201d ) common stock with cumulative return of s&p 500 index , kbw bank index s&p financial index.
 s&p 500 index is commonly referenced u. s.
 equity benchmark leading companies from different economic sectors.
 kbw bank index performance of banks and thrifts publicly traded in u. s.
 composed of 24 leading national money center regional banks and thrifts.
 s&p financial index index of 85 financial companies  all components of s&p 500.
 firm component of all three industry indices.
 table and graph assume simultaneous investments of $ 100 on december 31, 2009, in jpmorgan chase common stock in each above indices.
 comparison assumes all dividends reinvested.
 december 31, ( in dollars ) 2009 2010 2011 2012 2013 2014.

december 31 ( in dollars ) | 2009     | 2010     | 2011    | 2012     | 2013     | 2014
-------------------------- | -------- | -------- | ------- | -------- | -------- | --------
jpmorgan chase             | $ 100.00 | $ 102.30 | $ 81.87 | $ 111.49 | $ 152.42 | $ 167.48
kbw bank index             | 100.00   | 123.36   | 94.75   | 125.91   | 173.45   | 189.69
s&p financial index        | 100.00   | 112.13   | 93.00   | 119.73   | 162.34   | 186.98
s&p 500 index              | 100.00   | 115.06   | 117.48  | 136.27   | 180.39   | 205.07


business subsequent to acquisition.
 liabilities for these payments classified as level 3 liabilities because related fair value measurement determined using income approach includes significant inputs not observable in market.
 financial assets and liabilities not measured at fair value debt reflected on consolidated balance sheets at cost.
 based on market conditions as of december 31 , 2018 and 2017 fair value of credit agreement borrowings approximated carrying values of $ 1. 7 billion and $ 2. 0 billion  respectively.
 based market conditions fair values of outstanding borrowings under receivables facility approximated carrying values of $ 110 million and $ 100 million at december 31 , 2018 and december 31 , 2017 .
 december 31 fair values of u. s.
 notes ( 2023 ) were approximately $ 574 million and $ 615 million  respectively compared to carrying value of $ 600 million at each date.
 december 31  2018 and 2017  fair values of euro notes ( 2024 ) were approximately $ 586 million and $ 658 million compared to carrying values of $ 573 million and $ 600 million  respectively.
 of december 31 , 2018  fair value of euro notes ( 2026/28 ) approximated carrying value of $ 1. 1 billion.
 fair value measurements of borrowings under our credit agreement and receivables facility classified as level 2 within fair value hierarchy determined based upon significant inputs observable in market including interest rates on recent financing transactions with similar terms and maturities.
 estimated fair value by calculating upfront cash payment market participant require at december 31 , 2018 to assume obligations.
 fair value of u. s.
 notes ( 2023 ) classified as level 1 within fair value hierarchy determined based upon observable market inputs including quoted market prices in active market.
fair values of our euro notes ( 2024 ) and euro notes ( 2026/28 ) determined based upon observable market inputs including quoted market prices in markets not active classified as level 2 within fair value hierarchy.
 note 13.
 commitments and contingencies operating leases obligated under noncancelable operating leases for corporate office space , warehouse and distribution facilities  trucks and certain equipment.
 future minimum lease commitments under these leases at december 31 , 2018 are as follows ( in thousands ) : years ending december 31:.
 rental expense for operating leases was approximately $ 300 million , $ 247 million , and $ 212 million during years ended december 31 , 2018 , 2017 and 2016  respectively.
 guarantee residual values of majority of truck and equipment operating leases.
 residual values decline over lease terms to defined percentage of original cost.
 in lessor not realize residual value when equipment sold  we responsible for portion of shortfall.
 if lessor realizes more than residual value when equipment sold  we be paid amount realized over residual value.
 terminated all operating leases subject to these guarantees at december 31 , 2018  portion of guaranteed residual value would have totaled approximately $ 76 million.
 not recorded liability for guaranteed residual value of equipment under operating leases recovery on disposition of equipment under leases expected to approximate guaranteed residual value.
 litigation and related contingencies certain contingencies resulting from litigation  claims commitments subject to of environmental and pollution control laws and regulations to ordinary course of business.
 expect resolution of such contingencies will not materially affect our financial position , results of operations or cash flows.

2019                          | $ 294269
----------------------------- | ---------
2020                          | 256172
2021                          | 210632
2022                          | 158763
2023                          | 131518
thereafter                    | 777165
future minimum lease payments | $ 1828519


consolidated income statement review presented in item 8 of report.
 net income for 2008 was $ 882 million 2007 was $ 1. 467 billion.
 total revenue for 2008 increased 7% ( 7 % ) compared with 2007.
 created positive operating leverage year-to-date comparison total noninterest expense increased 3% ( 3 % ) comparison.
 net interest income and net interest margin year ended december 31 dollars in millions 2008 2007.
 changes in net interest income margin result from interaction of volume composition of interest-earning assets related yields interest-bearing liabilities related rates paid noninterest-bearing sources of funding.
 see statistical information 2013 analysis of year-to-year changes in net interest ( unaudited ) income average consolidated balance sheet net interest analysis in item 8 report for additional information.
 31% ( 31 % ) increase in net interest income for 2008 compared with 2007 impacted by $ 16. 5 billion  or 17% ( 17 % ), increase in average interest-earning assets decrease in funding costs.
 2008 net interest margin affected by declining rates paid on deposits borrowings compared prior year.
 reasons driving higher interest-earning assets comparisons discussed in balance sheet highlights portion executive summary section item 7.
 net interest margin was 3. 37% ( 3. 37 % ) for 2008 3. 00% ( 3. 00 % ) for 2007.
 factors impacted comparison : 2022 decrease in rate paid on interest-bearing liabilities of 140 basis points.
 rate paid on interest-bearing deposits largest component decreased 123 basis points.
 offset by 77 basis point decrease in yield on interest-earning assets.
 yield on loans largest component decreased 109 basis points.
 2022 impact of noninterest-bearing sources of funding decreased 26 basis points due to lower interest rates lower proportion of noninterest- bearing sources of funding to interest-earning assets.
comparing to broader market 2008 average federal funds rate was 1. 94% ( 1. 94 % ) compared with 5. 03% ( 5. 03 % ) for 2007.
 expect full-year 2009 net interest income to benefit from impact interest accretion discounts from purchase accounting marks deposit pricing alignment related to national city acquisition.
 expect 2009 net interest margin to improve year-over-year basis.
 noninterest income summary was $ 3. 367 billion for 2008 and $ 3. 790 billion for 2007.
 noninterest income for 2008 included 2022 gains of $ 246 million to mark-to-market adjustment on blackrock ltip shares obligation  2022 losses related to commercial mortgage loans for sale of $ 197 million  net of hedges 2022 impairment other losses related to alternative investments of $ 179 million  2022 income from hilliard lyons totaling $ 164 million first quarter gain of $ 114 million from sale business 2022 net securities losses of $ 206 million  first quarter gain of $ 95 million to redemption of portion visa class b common shares visa 2019s march 2008 initial public offering third quarter $ 61 million reversal of legal contingency reserve acquisition due to settlement 2022 trading losses of $ 55 million  $ 35 million impairment charge on commercial mortgage servicing rights 2022 equity management losses of $ 24 million.
 noninterest income for 2007 included 2022 impact of $ 82 million gain transfer of blackrock shares to satisfy portion pnc 2019s ltip obligation $ 209 million net loss on ltip shares obligation  2022 income from hilliard lyons $ 227 million  2022 trading income of $ 104 million  2022 equity management gains of $ 102 million  2022 gains related to commercial mortgage loans held for sale of $ 3 million , net of hedges.
impact items noninterest income increased $ 16 million 2008 compared with 2007.
 analysis fund servicing fees increased $ 69 million 2008 to $ 904 million compared with $ 835 million 2007.
 impact of december 2007 acquisition of albridge solutions inc.
 ( 201calbridge solutions 201d ) growth in global investment servicing 2019s offshore operations primary drivers increase.
 global investment servicing provided fund accounting/ administration services for $ 839 billion net fund investment assets custody services for $ 379 billion fund

year ended december 31 dollars in millions | 2008             | 2007
------------------------------------------ | ---------------- | ----------------
net interest income                        | $ 3823           | $ 2915
net interest margin                        | 3.37% ( 3.37 % ) | 3.00% ( 3.00 % )


note 4 property plant equipment table major classes property equipment category december 31 2015 2014 range utility plant non-depreciable assets.
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 141 $ 137.
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 681 12 to 127 years 51 years pumping facilities.
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 3070 2969 3 to 101 years 39 years distribution facilities.
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 8516 7963 9 to 156 years 83 years services meters hydrants.
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 3250 3062 8 to 93 years 35 years structures equipment.
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 1227 1096 1 to 154 years 39 years pumping disposal.
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 313 281 2 to 115 years 46 years.
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 473 399 5 to 109 years 56 years construction.
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 404 303 utility plant.
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 18099 16891 nonutility property.
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 405 378 3 to 50 years 6 years total property , plant equipment.
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 $ 18504 $ 17269 property , plant equipment depreciation expense $ 405 , $ 392 , $ 374 years ended december 31, 2015, 2014 2013 included in depreciation amortization expense accompanying consolidated statements operations.
 provision depreciation percentage aggregate average depreciable asset balances 3. 13% ( 3. 13 % ) year ended december 31, 2015 3. 20% ( 3. 20 % ) years december 31 , 2014 2013.
 note 5 : allowance for uncollectible accounts following table summarizes changes company 2019s allowances uncollectible accounts years ended december 31:.

| 2015         | 2014         | 2013
--------------------------------- | ------------ | ------------ | ------------
balance as of january 1           | $ -35 ( 35 ) | $ -34 ( 34 ) | $ -27 ( 27 )
amounts charged to expense        | -32 ( 32 )   | -37 ( 37 )   | -27 ( 27 )
amounts written off               | 38           | 43           | 24
recoveries of amounts written off | -10 ( 10 )   | -7 ( 7 )     | -4 ( 4 )
balance as of december 31         | $ -39 ( 39 ) | $ -35 ( 35 ) | $ -34 ( 34 )


nonoperating income ( expense ).
 blackrock uses operating margin  to monitor corporate performance efficiency benchmark to compare performance with other companies.
 management uses both gaap and non-gaap financial measures in evaluating blackrock 2019s financial performance.
 non-gaap measure may pose limitations not include all blackrock 2019s revenues and expenses.
 operating income used for measuring operating margin  adjusted is equal to operating income , adjusted , excluding impact of closed-end fund launch costs related commissions.
 management believes exclusion of such costs related commissions useful because these costs can fluctuate revenues associated with expenditure of these costs not fully impact blackrock 2019s results until future periods.
 revenue used for operating margin  excludes distribution and servicing costs paid to related parties other third parties.
 management believes exclusion of such costs useful because creates consistency in treatment for certain contracts for similar services  accounted for under gaap net basis within investment advisory , administration fees securities lending revenue.
 amortization of deferred sales commissions excluded from revenue for operating margin measurement  such costs substantially offset distribution fee revenue company earns.
 for each these items blackrock excludes from revenue for operating margin  costs related to each these items as proxy for such offsetting revenues.
 ( b ) nonoperating income ( expense ) , less net income ( loss ) attributable to noncontrolling interests  adjusted  is presented below.
 compensation expense offset is recorded in operating income.
 this compensation expense included in nonoperating income ( expense ) , less net income ( loss ) attributable to nci  adjusted to offset returns on investments set aside for these plans , reported in nonoperating income ( expense ) , gaap basis.
management believes nonoperating income expense ) less net income ( loss ) attributable to nci  adjusted provides comparability among reporting periods effective measure for reviewing blackrock 2019s nonoperating contribution to results.
 compensation expense associated with appreciation depreciation on investments related to deferred compensation plans included in operating income offsets gain ( loss ) on investments for plans believes nonoperating income less net income ( loss ) attributable to nci  adjusted provides useful measure for of blackrock 2019s nonoperating results impact book value.
 during 2013  noncash nonoperating pre-tax gain of $ 80 million related to contributed pennymac investment excluded from nonoperating income expense ) less net income loss ) attributable to nci  adjusted due to nonrecurring nature more than offsetting charitable contribution expense of $ 124 million reported in operating income.
 millions ) 2013 2012 2011 nonoperating income ( expense ) , gaap basis $ 116 $ ( 54 ) $ ( 114 ) less : net income ( loss ) attributable to nci 19 ( 18 ) 2.
 gain related to charitable contribution ( 80 ) 2014 2014 compensation expense related to appreciation depreciation on deferred compensation plans ( 10 ) ( 6 ) 3 nonoperating income ( expense ) less net income ( loss ) attributable to nci  adjusted $ 7 $ ( 42 ) $ ( 113 ) ( c ) net income attributable to blackrock  as adjusted management believes net income to blackrock. adjusted diluted earnings per common share adjusted are useful measures of blackrock 2019s profitability financial performance.
 net income attributable to blackrock , inc.  adjusted equals net income attributable to blackrock , inc.gaap basis  adjusted for significant nonrecurring items charges not impact blackrock 2019s book value or certain tax items not impact cash flow.
 see note ( a ) operating income  adjusted operating margin  adjusted for information on pnc ltip funding obligation  merrill lynch compensation contribution  charitable contribution  u.
 lease exit costs  contribution to stifs restructuring charges.
 2013 results included tax benefit of approximately $ 48 million with charitable contribution.
 tax benefit excluded from net income attributable to blackrock , inc. adjusted due to nonrecurring nature of charitable contribution.
 during 2013  income tax changes included adjustments related to revaluation of certain deferred income tax liabilities including effect of legislation in united kingdom domestic state and local income tax changes.
 during 2012  income tax changes included adjustments related to revaluation of certain deferred income tax liabilities including effect of legislation enacted in united kingdom state and local income tax effect from changes in company 2019s organizational structure.
 during 2011 , income tax changes included adjustments related to revaluation of certain deferred income tax liabilities due to state tax election enacted. japan.
 state and local tax legislation.
 resulting decrease in income taxes excluded from net income attributable to blackrock , inc. as adjusted these items not have cash flow impact to ensure comparability among periods presented.

( in millions )                                                                              | 2013       | 2012         | 2011
-------------------------------------------------------------------------------------------- | ---------- | ------------ | --------------
nonoperating income ( expense ) gaap basis                                                   | $ 116      | $ -54 ( 54 ) | $ -114 ( 114 )
less : net income ( loss ) attributable to nci                                               | 19         | -18 ( 18 )   | 2
nonoperating income ( expense )                                                              | 97         | -36 ( 36 )   | -116 ( 116 )
gain related to charitable contribution                                                      | -80 ( 80 ) | 2014         | 2014
compensation expense related to ( appreciation ) depreciation on deferred compensation plans | -10 ( 10 ) | -6 ( 6 )     | 3
nonoperating income ( expense ) less net income ( loss ) attributable to nci as adjusted     | $ 7        | $ -42 ( 42 ) | $ -113 ( 113 )


table of contents celanese purchases equity securities information regarding repurchases common stock three months ended december 31 , 2017 follows : period number of shares purchased ( 1 ) average price paid per share total number shares purchased publicly announced program approximate dollar value shares remaining purchased under program ( 2 ).
 ___________________________ ( 1 ) represents shares withheld from employees cover statutory minimum withholding requirements for personal income taxes related vesting restricted stock units.
 ( 2 ) board of directors authorized aggregate repurchase $ 3. 9 billion common stock since february 2008 including increase $ 1. 5 billion on july 17 , 2017.
 see note 17 - stockholders' equity accompanying consolidated financial statements for further information.

period               | totalnumberof sharespurchased ( 1 ) | averageprice paidper share | total numberof sharespurchased aspart of publiclyannounced program | approximatedollarvalue of sharesremaining thatmay bepurchased underthe program ( 2 )
-------------------- | ----------------------------------- | -------------------------- | ------------------------------------------------------------------ | ------------------------------------------------------------------------------------
october 1 - 31 2017  | 10676                               | $ 104.10                   | 2014                                                               | $ 1531000000
november 1 - 30 2017 | 924                                 | $ 104.02                   | 2014                                                               | $ 1531000000
december 1 - 31 2017 | 38605                               | $ 106.36                   | 2014                                                               | $ 1531000000
total                | 50205                               |                            | 2014                                                               |


asset positions totaled $ 41. 2 million at june 30 , 2009.
 to manage risk established strict counterparty credit guidelines continually monitored reported to management.
 management believes risk of loss under hedging contracts is remote.
 certain derivative fi nancial instruments contain credit-risk-related contingent features.
 as of june 30 , 2009 in compliance with such features no derivative financial instruments with credit-risk-related contingent features in net liability position.
 est{e lauder companies inc.
 111 market risk use value-at-risk model to assess market risk of derivative fi nancial instruments.
 value-at-risk rep resents potential losses for instrument or portfolio from adverse changes in market factors for specifi ed time period confi dence level.
 estimate value- at-risk across derivative fi nancial instruments using model with historical volatilities correlations calculated over past 250-day period.
 high , low average measured value-at-risk for twelve months ended june 30, 2009 and 2008 related to foreign exchange and interest rate contracts as follows:.
 change in value-at-risk measures from prior year related to foreign exchange contracts refl ected increase in foreign exchange volatilities different portfolio mix.
 change in value-at-risk measures from prior year related to interest rate contracts refl ected higher interest rate volatilities.
 model esti- mates made assuming normal market conditions 95 percent confi dence level.
 used statistical simulation model valued derivative fi nancial instruments against one thousand randomly generated market price paths.
 calculated value-at-risk exposure represents esti mate of reasonably possible net losses recognized on portfolio of derivative fi nancial instru- ments assuming hypothetical movements in future market rates not necessarily indicative of actual results may or not occur.
not represent maximum possible loss or expected loss since actual future gains and losses differ from estimated based upon actual fl uctuations in market rates  operating exposures timing changes in our portfolio of derivative fi nancial instruments during year.
 believe  loss incurred be offset by effects of market rate movements on underlying transactions for deriva- tive fi nancial instrument intended.
 off-balance sheet arrangements not maintain any off-balance sheet arrangements transactions  obligations or other relationships with unconsolidated entities expected to have material current or future effect upon our fi nancial condi- tion or results of operations.
 recently adopted accounting standards in may 2009  financial accounting standards board ( 201cfasb 201d ) issued statement of financial accounting standards ( 201csfas 201d ) no.
 165 , 201csubsequent events 201d ( 201csfas no.
 165 201d ).
 no.
 165 requires disclosure of date entity evaluated subsequent events for potential recognition or disclosure in fi nan- cial statements and whether date represents date fi nancial statements were issued or available to be issued.
 standard provides clarifi cation about circumstances under entity should recognize events or transactions occurring after balance sheet date in fi nancial statements and disclosures entity make about events or transactions after balance sheet date.
 standard effective for interim and annual periods beginning with fi scal year ended june 30 , 2009.
 adoption of standard not material impact on consoli- dated fi nancial statements.
 in march 2008  fasb issued sfas no.
 161 , 201cdisclosures about derivative instruments and hedging activities 2014 amendment of fasb statement no.
 133 201d ( 201csfas no.
 161 201d ).
 sfas no.
161 requires companies provide qualitative disclosures about objectives strategies for using derivative instruments , quantitative disclosures of fair values , gains losses on  these derivative instruments in tabular format more information about liquidity by requiring disclosure of derivative contract 2019s credit-risk-related contingent

( in millions )            | june 30 2009 high | june 30 2009 low | june 30 2009 average | june 30 2009 high | june 30 2009 low | average
-------------------------- | ----------------- | ---------------- | -------------------- | ----------------- | ---------------- | -------
foreign exchange contracts | $ 28.4            | $ 14.2           | $ 21.6               | $ 18.8            | $ 5.3            | $ 11.3
interest rate contracts    | 34.3              | 23.0             | 29.5                 | 28.8              | 12.6             | 20.0


simplify presentation of deferred income taxes reduce complexity without decreasing usefulness of information to users financial statements.
 adoption pronouncement significant impact on company 2019s financial position results operations cash flows.
 3.
 acquisitions endomondo on january 5 , 2015  company acquired 100% ( 100 % ) of outstanding equity of endomondo , denmark- based digital connected fitness company to expand under armour connected fitness community.
 purchase price was $ 85. 0 million  adjusted for working capital.
 company recognized $ 0. 6 million and $ 0. 8 million in acquisition related costs expensed during three months ended march 31, 2015 and december 31, 2014 .
 costs included in consolidated statements of income in line item entitled 201cselling , general and administrative expenses. 201d pro forma results not presented acquisition not considered material to consolidated company.
 myfitnesspal march 17 , 2015 company acquired 100% ( 100 % ) of outstanding equity of mfp , digital nutrition connected fitness company to expand under armour connected fitness community.
 final adjusted transaction value totaled $ 474. 0 million.
 total consideration of $ 463. 9 million adjusted to reflect accelerated vesting of certain share awards of mfp not conditioned upon continued employment transaction costs borne by selling shareholders.
 acquisition funded with $ 400. 0 million of increased term loan borrowings draw on revolving credit facility remaining amount funded by cash company recognized $ 5. 7 million of acquisition related costs expensed during three months ended march 31 , 2015.
 costs included in consolidated statement of income in line item entitled 201cselling , general and administrative expenses.201d following represents pro forma consolidated income statement as if mfp included in consolidated results company for year ended december 31 , 2015 and december 31 , 2014:.
 amounts calculated after applying company 2019s accounting policies adjusting results mfp to reflect acquisition if closed on january 1 , 2014.
 pro forma net income for year ended december 31 , 2014 includes $ 5. 7 million in transaction expenses included in consolidated statement income for year ended december 31 , 2015, excluded from calculation of pro forma net income for december 31 , 2015.

( in thousands ) | year ended december 31 , 2015 | year ended december 31 , 2014
---------------- | ----------------------------- | -----------------------------
net revenues     | $ 3967008                     | $ 3098341
net income       | 231277                        | 189659


borrowings reflect net proceeds from issuance senior notes in june 2015.
 see liquidity capital resources additional information.
 november 2015 repaid $ 1 billion 0. 90% ( 0. 90 % ) senior notes upon maturity.
 october 2015 announced adjustment to quarterly dividend.
 see capital requirements information.
 additions to property  plant equipment are significant use of cash cash equivalents.
 table shows capital expenditures related to continuing operations by segment reconciles to additions to property plant equipment in consolidated statements of cash flows for 2015, 2014 2013.
 ( a ) reflects reimbursements from governments of canada and alberta related to funds expended for quest ccs capital equipment.
 quest ccs completed commissioned fourth quarter of 2015.
 2014 acquired 29 million shares cost $ 1 billion 2013 acquired 14 million shares cost $ 500 million.
 no share repurchases in 2015.
 see item 8.
 financial statements supplementary data 2013 note 23 consolidated financial statements for discussion purchases of common stock.
 liquidity capital resources june 10 , 2015 issued $ 2 billion aggregate amount unsecured senior notes series : 2022 $ 600 million of 2. 70% ( 2. 70 % ) senior notes due june 1 , 2020 2022 $ 900 million of 3. 85% ( 3. 85 % ) senior notes due june 1 , 2025 2022 $ 500 million of 5. 20% ( 5. 20 % ) senior notes due june 1 , 2045 interest on each series senior notes payable semi-annually beginning december 1 , 2015.
 used aggregate net proceeds to repay $ 1 billion 0. 90% ( 0. 90 % ) senior notes on november 2 , 2015 remainder for general corporate purposes.
 may 2015 amended $ 2.5 billion credit facility to increase facility size by $ 500 million to total of $ 3. 0 billion extend maturity date by additional year credit facility now matures in may 2020.
 amendment provides ability to request two one-year extensions to maturity date option to increase commitment amount by up to additional $ 500 million , subject to consent of increasing lenders.
 sub-facilities for swing-line loans and letters of credit remain unchanged allowing up to aggregate amount of $ 100 million and $ 500 million , respectively.
 fees on unused commitment of each lender , borrowing options under credit facility  remain unchanged.
 main sources of liquidity are cash and cash equivalents , internally generated cash flow from operations , capital market transactions , committed revolving credit facility sales of non-core assets.
 working capital requirements supported by these sources may issue commercial paper backed by $ 3. 0 billion revolving credit facility or draw on $ 3. 0 billion revolving credit facility to meet short-term cash requirements or issue debt or equity securities through shelf registration statement discussed part of longer-term liquidity and capital management.
 alternatives available discussed above believe short-term and long-term liquidity adequate to fund current operations near-term and long-term funding requirements including capital spending programs , dividend payments , defined benefit plan contributions , repayment of debt maturities other amounts may be paid in connection with contingencies.
 general economic conditions , commodity prices , financial , business and other factors could affect operations ability to access capital markets.
 downgrade in credit ratings could negatively impact cost of capital and ability to access capital markets , increase interest rate and fees pay on unsecured revolving credit facility  restrict access to commercial paper market  require to post letters of credit or other forms of collateral for

( in millions )                           | year ended december 31 , 2015 | year ended december 31 , 2014 | year ended december 31 , 2013
----------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
north america e&p                         | $ 2553                        | $ 4698                        | $ 3649
international e&p                         | 368                           | 534                           | 456
oil sands mining ( a )                    | -10 ( 10 )                    | 212                           | 286
corporate                                 | 25                            | 51                            | 58
total capital expenditures                | 2936                          | 5495                          | 4449
change in capital expenditure accrual     | 540                           | -335 ( 335 )                  | -6 ( 6 )
additions to property plant and equipment | $ 3476                        | $ 5160                        | $ 4443


primary disbursement accounts reclassified as accounts payable other accrued liabilities on consolidated balance sheet.
 concentration of credit risk financial instruments potentially subject us to concentrations of credit risk consist of cash and cash equivalents , trade accounts receivable derivative instruments.
 we place cash and cash equivalents with high quality financial institutions.
 balances may be in excess of fdic insured limits.
 to manage related credit exposure we continually monitor credit worthiness of financial institutions where have deposits.
 concentrations of credit risk with to trade accounts receivable limited due to wide variety of customers and markets in provide services dispersion of operations across many geographic areas.
 provide services to commercial , industrial municipal residential customers in united states and puerto rico.
 perform ongoing credit evaluations of customers do not require collateral to support customer receivables.
 establish allowance for doubtful accounts based on factors including credit risk of specific customers age of receivables outstanding  historical trends  economic conditions other information.
 no customer exceeded 5% ( 5 % ) of outstanding accounts receivable balance at december 31 , 2009 or 2008.
 accounts receivable  net of allowance for doubtful accounts represent receivables from customers for collection , transfer  recycling  disposal other services.
 receivables recorded when billed or when related revenue is earned represent claims against third parties settled in cash.
 carrying value of receivables , net of allowance for doubtful accounts represents their estimated net realizable value.
 provisions for doubtful accounts evaluated on monthly basis recorded based on historical collection experience age of receivables specific customer information economic conditions.
 review outstanding balances on account-specific basis.
 reserves provided for accounts receivable in excess of ninety days old.
past due receivable balances written-off when collection efforts unsuccess- ful collecting amounts due.
 following table reflects activity in allowance for doubtful accounts for years ended december 31 , 2009 , 2008 2007:.
 subsequent to acquisition of allied  recorded provision for doubtful accounts of $ 14. 2 million to adjust allowance acquired from allied to conform to republic 2019s accounting policies.
 recorded $ 5. 4 million to provide for specific bankruptcy exposures in 2008.
 2007  recorded $ 4. 3 million reduction in allowance for doubtful accounts result refining estimate of allowance based on historical collection experience.
 restricted cash as of december 31, 2009 had $ 236. 6 million of restricted cash $ 93. 1 million proceeds from issuance of tax-exempt bonds other tax-exempt financings used to fund capital republic services , inc.
 subsidiaries notes to consolidated financial statements

| 2009           | 2008           | 2007
---------------------------- | -------------- | -------------- | ------------
balance at beginning of year | $ 65.7         | $ 14.7         | $ 18.8
additions charged to expense | 27.3           | 36.5           | 3.9
accounts written-off         | -37.8 ( 37.8 ) | -12.7 ( 12.7 ) | -7.8 ( 7.8 )
acquisitions                 | -              | 27.2           | -0.2 ( 0.2 )
balance at end of year       | $ 55.2         | $ 65.7         | $ 14.7


year ended december 31 , 2005  realized net losses $ 1 million on sales available-for- sale securities.
 unrealized gains of $ 1 million included in other comprehensive income at december 31 , 2004 net of deferred taxes less than $ 1 million related sales.
 year ended december 31 , 2004 realized net gains $ 26 million on sales available-for- sale securities.
 unrealized gains $ 11 million included in other comprehensive income at december 31 , 2003 net of deferred taxes $ 7 million related to sales.
 note 13.
 equity-based compensation 2006 equity incentive plan approved by shareholders in april 2006 20000000 shares of common stock approved for issuance for stock stock-based awards including stock options  stock appreciation rights  restricted stock  deferred stock performance awards.
 up to 8000000 shares from 1997 equity incentive plan available to issue or available due to cancellations forfeitures may be awarded under 2006 plan.
 1997 plan expired december 18 , 2006.
 as of december 31 , 2006 , 1305420 shares from 1997 plan added to and may be awarded from 2006 plan.
 as of december 31 , 2006 106045 awards made under 2006 plan.
 stock options outstanding from previous plans including 1997 plan  no further grants can be made.
 exercise price of non-qualified and incentive stock options and stock appreciation rights not less than fair value of shares at date of grant.
 stock options stock appreciation rights issued under 2006 plan and prior 1997 plan vest over four years expire no later than ten years from date of grant.
 for restricted stock awards issued under 2006 plan and prior 1997 plan stock certificates issued at time of grant recipients have dividend and voting rights.
 grants vest over three years.
deferred stock awards issued under 2006 plan prior 1997 plan no stock issued at time of grant.
 grants vest over two- three- four-year periods.
 performance awards granted under 2006 equity incentive plan prior 1997 plan earned over performance period based on achievement of goals generally over two- to three- year periods.
 payment for performance awards made in shares common stock or in cash equal to fair market value of common stock based on certain financial ratios after conclusion each performance period.
 record compensation expense  equal to estimated fair value of options on grant date straight-line basis over options 2019 vesting period.
 use black-scholes option-pricing model to estimate fair value of options granted.
 weighted-average assumptions option-pricing model were as follows for years indicated.
 compensation expense related to stock options  stock appreciation rights  restricted stock awards deferred stock awards performance awards record component of salaries employee benefits expense in consolidated statement of income was $ 208 million, $ 110 million $ 74 million for years ended december 31 , 2006  2005 2004 .
 related total income tax benefit recorded in consolidated statement of income was $ 83 million , $ 44 million $ 30 million for 2006 , 2005 2004 .
 87 copyarea : 38.
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| 2006             | 2005             | 2004
---------------------------------- | ---------------- | ---------------- | ----------------
dividend yield                     | 1.41% ( 1.41 % ) | 1.85% ( 1.85 % ) | 1.35% ( 1.35 % )
expected volatility                | 26.50            | 28.70            | 27.10
risk-free interest rate            | 4.60             | 4.19             | 3.02
expected option lives ( in years ) | 7.8              | 7.8              | 5.0


latin american soft alloy extrusions business previously included in corporate moved into new transportation and construction solutions segment.
 remaining engineered products and solutions segment consists of alcoa fastening systems and rings ( renamed to include portions firth rixson business acquired in november 2014 ) alcoa power and propulsion ( includes tital business acquired march 2015 ) alcoa forgings and extrusions ( includes other portions of firth rixson ) alcoa titanium and engineered products ( new business unit of rti international metals business acquired in july 2015 ) business units.
 segment information for all prior periods updated to reflect new segment structure.
 atoi for all reportable segments totaled $ 1906 in 2015  $ 1968 in 2014  $ 1267 in 2013.
 information provides shipments  sales  atoi data for each reportable segment production , realized price  average cost data for each of three years in period ended december 31 , 2015.
 see note q to consolidated financial statements in part ii item 8 of form 10-k for additional information.
 alumina.
 includes all production-related costs including raw materials consumed ; conversion costs labor , materials  utilities ; depreciation , depletion  amortization plant administrative expenses.
 segment represents portion of alcoa 2019s upstream operations consists of company 2019s worldwide refining system.
 alumina mines bauxite  from alumina produced and sold directly to external smelter customers to primary metals segment ( primary metals or customers process it into industrial chemical products.
 more than half of alumina 2019s production sold under supply contracts to third parties worldwide remainder used internally by primary metals segment.
 alumina produced by segment used internally transferred to primary metals segment at prevailing market prices.
portion of this segment 2019s third- party sales completed through agents , alumina traders  distributors.
 generally sales segment transacted in u. s.
 dollars costs and expenses segment transacted in local currency of respective operations , australian dollar , brazilian real , u. s.
 dollar  euro.
 awac is unincorporated global joint venture between alcoa and alumina limited consists of affiliated operating entities  own interest in operate bauxite mines and alumina refineries within alumina segment ( except for poc 0327os de caldas refinery in brazil and portion of sa 0303o lul 0301s refinery in brazil ).
 alcoa owns 60% ( 60 % ) and alumina limited owns 40% ( 40 % ) of these individual entities  consolidated by company for financial reporting purposes.
 results and analysis for alumina segment inclusive of alumina limited 2019s 40% ( 40 % ) interest.
 in december 2014  awac completed sale of ownership stake in jamalco , bauxite mine and alumina refinery joint venture in jamaica , to noble group ltd.
 jamalco was 55% ( 55 % ) owned by subsidiary of awac , owned by awac  55% ( 55 % ) of operating results and assets and liabilities of joint venture included in alumina segment.
 to awac 2019s previous 55% ( 55 % ) ownership stake  refinery ( awac 2019s share of capacity was 779 kmt-per-year ) generated sales ( third-party and intersegment ) of approximately $ 200 in 2013 , refinery and mine combined at time of divestiture had approximately 500 employees.
 see restructuring other charges in results of operations above.

| 2015   | 2014   | 2013
------------------------------------------------------------ | ------ | ------ | ------
alumina production ( kmt )                                   | 15720  | 16606  | 16618
third-party alumina shipments ( kmt )                        | 10755  | 10652  | 9966
alcoa 2019s average realized price per metric ton of alumina | $ 317  | $ 324  | $ 328
alcoa 2019s average cost per metric ton of alumina*          | $ 237  | $ 282  | $ 295
third-party sales                                            | $ 3455 | $ 3509 | $ 3326
intersegment sales                                           | 1687   | 1941   | 2235
total sales                                                  | $ 5142 | $ 5450 | $ 5561
atoi                                                         | $ 746  | $ 370  | $ 259


2022 integration new projects.
 during 2010 , following projects acquired or commenced commercial operations : project location fuel aes equity interest ( percent , rounded ).
 damlapinar ( 4 ).
.
.
.
.
.
.
.
.
.
.
.
.
.
 turkey hydro 16 51% ( 51 % ) ( 1 ) jianghe rural electrification development co.
 ltd.
 ( 201cjhrh 201d ) and aes china hydropower investment co.
 ltd.
 entered agreement to acquire 49% ( 49 % ) interest in joint venture june 2010.
 acquisition of 35% ( 35 % ) ownership completed june 2010 transfer remaining 14% ( 14 % ) ownership  subject to approval by chinese government expected completed may 2011.
 ( 2 ) guacolda equity method investment indirectly held by aes through gener.
 aes equity interest reflects 29% ( 29 % ) noncontrolling interests gener.
 ( 3 ) joint venture with guohua energy investment co.
 ltd.
 ( 4 ) joint venture with i. c.
 energy.
 key trends uncertainties operations continue face many risks as discussed in item 1a. 2014risk factors form 10-k.
 challenges described above in key drivers results 2010.
 continue monitor operations address challenges as arise.
 development.
 past year  company successfully acquired completed construction projects  totaling approximately 2404 mw , including acquisition of ballylumford in united kingdom completion construction projects in europe , chile and china.
 discussed item 1a. 2014risk factors 2014our business subject to substantial development uncertainties form 10-k  development projects subject to uncertainties.
delays occurred at 670 mw maritza coal-fired project in bulgaria  project not yet begun commercial operations.
 as noted in note 10 2014debt included in item 8 of form 10-k , result of these delays project debt is in default and company working with lenders to resolve default.
 in addition as noted in item 3. 2014legal proceedings  company in litigation with contractor regarding cause of delays.
 we believe maritza will commence commercial operations for some of project 2019s capacity by second half of 2011.
 commencement of commercial operations could be delayed beyond this time frame.
 can no assurance that maritza will achieve commercial operations  in whole or in part  by second half of 2011 , resolve default with lenders or prevail in litigation could result in loss of some or all investment or require additional funding for project.
 any these events could have material adverse effect on company 2019s operating results or financial position.
 global economic conditions.
 during past few years  economic conditions in some countries where our subsidiaries conduct business have deteriorated.
 although economic conditions in several countries improved in recent months our businesses could be impacted in event these recent trends do not continue.

project           | location       | fuel  | gross mw | aes equity interest ( percent rounded )
----------------- | -------------- | ----- | -------- | ---------------------------------------
ballylumford      | united kingdom | gas   | 1246     | 100% ( 100 % )
jhrh ( 1 )        | china          | hydro | 379      | 35% ( 35 % )
nueva ventanas    | chile          | coal  | 272      | 71% ( 71 % )
st . nikola       | bulgaria       | wind  | 156      | 89% ( 89 % )
guacolda 4 ( 2 )  | chile          | coal  | 152      | 35% ( 35 % )
dong qi ( 3 )     | china          | wind  | 49       | 49% ( 49 % )
huanghua ii ( 3 ) | china          | wind  | 49       | 49% ( 49 % )
st . patrick      | france         | wind  | 35       | 100% ( 100 % )
north rhins       | scotland       | wind  | 22       | 100% ( 100 % )
kepezkaya         | turkey         | hydro | 28       | 51% ( 51 % )
damlapinar ( 4 )  | turkey         | hydro | 16       | 51% ( 51 % )


certegy merger company has obligation to service $ 200 million principal amount of unsecured 4. 75% ( 4. 75 % ) fixed-rate notes due in 2008.
 notes recorded in purchase accounting at discount of $ 5. 7 million  amortized over term of notes.
 notes accrue interest at rate of 4. 75% ( 4. 75 % ) per year payable semi-annually in arrears on each march 15 and september 15.
 april 11 , 2005  fis entered interest rate swap agreements fixed interest rate at approximately 5. 4% ( 5. 4 % ) through april 2008 on $ 350 million term loan facilities replacement debt ) and approximately 5. 2% ( 5. 2 % ) through april 2007 on additional $ 350 million term loan.
 company designated interest rate swaps as cash flow hedges accordance with sfas no.
 133.
 estimated fair value of cash flow hedges results in asset to company of $ 4. 9 million and $ 5. 2 million , as of december 31, 2006 and december 31, 2005  included in consolidated balance sheets in other noncurrent assets and component of accumulated other comprehensive earnings  net of deferred taxes.
 portion of amount accumulated other comprehensive earnings reclassified into interest expense as yield adjustment as interest payments made on term loan facilities.
 company existing cash flow hedges effective no current impact on earnings due to hedge ineffectiveness.
 policy company to execute instruments with credit-worthy banks not to enter into derivative financial instruments for speculative purposes.
 principal maturities at december 31 , 2006 ( december 31 , 2006 after effect debt refinancing completed january 18 , 2007 ) for next five years and thereafter are as follows ( in thousands ) : december 31 , january 18 , 2007 refinancing.
 fidelity national information services , inc.
subsidiaries affiliates consolidated combined financial statements notes to consolidated financial statements 2014 ( continued )

| december 31 2006 | january 18 2007 refinancing
---------- | ---------------- | ---------------------------
2007       | $ 61661          | $ 96161
2008       | 257541           | 282041
2009       | 68129            | 145129
2010       | 33586            | 215586
2011       | 941875           | 165455
thereafter | 1646709          | 2105129
total      | $ 3009501        | $ 3009501


analysis of our depreciation studies.
 changes in estimated service lives of assets and related depreciation rates implemented prospectively.
 under group depreciation  historical cost ( net of salvage ) of depreciable property retired or replaced in ordinary course business charged to accumulated depreciation no gain or loss recognized.
 historical cost of certain track assets estimated using i ) inflation indices published by bureau of labor statistics and ii ) estimated useful lives of assets as determined by depreciation studies.
 indices selected because correlate with major costs of properties applicable track asset classes.
 because of number of estimates inherent in depreciation and retirement processes impossible to precisely estimate each variables until group of property is completely retired we continually monitor estimated service lives of assets and accumulated depreciation associated with each asset class to ensure depreciation rates appropriate.
 in we determine if recorded amount of accumulated depreciation is deficient ( or in excess ) of amount indicated by depreciation studies.
 any deficiency ( or excess ) is amortized as component of depreciation expense over remaining service lives of applicable classes of assets.
 for retirements of depreciable railroad properties not occur in normal course of business gain or loss may be recognized if retirement meets each of following three conditions : i ) is unusual , ii ) material in amount  iii ) varies significantly from retirement profile identified through depreciation studies.
 gain or loss recognized in other income when we sell land or dispose of assets not part of railroad operations.
 when we purchase asset  we capitalize all costs necessary to make asset ready for intended use.
 many of assets are self-constructed.
large portion of capital expenditures for replacement of existing track assets other road properties typically performed by employees for track line expansion other capacity projects.
 costs directly attributable to capital projects ( including overhead costs ) are capitalized.
 direct costs capitalized as part of self- constructed assets include material  labor  work equipment.
 indirect costs capitalized if clearly relate to construction of asset.
 general administrative expenditures expensed as incurred.
 normal repairs and maintenance  including rail grinding also expensed as incurred costs that extend useful life of asset improve safety operations or improve operating efficiency are capitalized.
 costs allocated using appropriate statistical bases.
 total expense for repairs maintenance incurred was $ 2. 1 billion for 2012 , $ 2. 2 billion for 2011  $ 2. 0 billion for 2010.
 assets held under capital leases recorded at lower of net present value of minimum lease payments or fair value of leased asset at inception of lease.
 amortization expense computed using straight-line method over shorter of estimated useful lives of assets or period of related lease.
 12.
 accounts payable other current liabilities dec.
 31 , dec.
 31  millions 2012 2011.

millions                                            | dec . 31 2012 | dec . 312011
--------------------------------------------------- | ------------- | ------------
accounts payable                                    | $ 825         | $ 819
accrued wages and vacation                          | 376           | 363
income and other taxes                              | 368           | 482
dividends payable                                   | 318           | 284
accrued casualty costs                              | 213           | 249
interest payable                                    | 172           | 197
equipment rents payable                             | 95            | 90
other                                               | 556           | 624
total accounts payable and othercurrent liabilities | $ 2923        | $ 3108


fis gaming business on june 1 , 2015  acquired assets of certegy check services , inc. wholly-owned subsidiary of fidelity national information services , inc.
 ( 201cfis 201d ).
 under purchase arrangement acquired substantially all assets of its gaming business related to licensed gaming operators ( 201cfis gaming business 201d ) including relationships with gaming clients in approximately 260 locations acquisition date for $ 237. 5 million , funded from borrowings revolving credit facility and cash on hand.
 acquired fis gaming business to expand direct distribution and service offerings in gaming market.
 estimated acquisition-date fair values of major classes assets acquired and liabilities assumed including reconciliation to total purchase consideration follows ( in thousands ) :.
 goodwill from acquisition  included north america segment  attributable to expected growth opportunities cross-selling opportunities at existing and acquired gaming client locations operating synergies in gaming business  assembled workforce.
 goodwill associated with acquisition deductible for income tax purposes.
 customer-related intangible assets have estimated amortization period of 15 years.
 valuation of identified intangible assets for acquisitions discussed estimated fair values customer-related intangible assets determined using income approach  based on projected cash flows discounted to present value using discount rates consider timing and risk of forecasted cash flows.
 discount rates used represented average estimated value of market participant 2019s cost of capital and debt  derived using customary market metrics.
 acquired technologies valued using replacement cost method  estimate costs to construct asset of equivalent utility at prices available at time of valuation analysis with adjustments in value for physical deterioration functional and economic obsolescence.
 trademarks and trade names valued using 201crelief-from-royalty 201d approach.
method assumes trademarks trade names have value to extent owner relieved of obligation to pay royalties for benefits received from them.
 method required us to estimate future revenues for related brands , appropriate royalty rate weighted-average cost of capital.
 discount rates used represented average estimated value of market participant 2019s cost of capital debt  derived using customary market metrics.
 note 3 2014 revenues leading worldwide provider of payment technology software solutions delivering innovative services to customers globally.
 our technologies , services employee expertise enable us to provide broad range of solutions allow customers to accept various payment types operate businesses more efficiently.
 distribute services across variety of channels to customers.
 disclosures in note applicable for year ended december 31, 2018.
 global payments inc.
 | 2018 form 10-k annual report 2013 79

customer-related intangible assets | $ 143400
---------------------------------- | ------------
liabilities                        | -150 ( 150 )
total identifiable net assets      | 143250
goodwill                           | 94250
total purchase consideration       | $ 237500


hologic , inc.
 notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) failure company to develop new products product enhancements timely basis or within budget could harm company 2019s results operations financial condition.
 for additional risks may affect company 2019s business prospects following completion merger , see 201crisk factors 201d in item 1a of company 2019s form 10-k for year ended september 29 , 2007.
 goodwill preliminary purchase price allocation resulted in goodwill of approximately $ 3895100.
 factors contributing to recognition this goodwill based upon strategic synergistic benefits expected to be realized from combination.
 benefits include expectation company 2019s complementary products technologies will create leading women 2019s healthcare company with enhanced presence in hospitals , private practices healthcare organizations.
 company expects to realize substantial synergies through use of cytyc 2019s ob/gyn and breast surgeon sales channel to cross-sell company 2019s existing future products.
 merger provides company broader channel coverage within united states expanded geographic reach internationally increased scale scope for expanding operations through product development complementary strategic transactions.
 supplemental unaudited pro-forma information following unaudited pro forma information presents consolidated results of operations of company and cytyc as if acquisitions occurred at beginning of fiscal 2007 with pro forma adjustments to effect to amortization of intangible assets  increase in interest expense on acquisition financing other adjustments with related tax effects:.
 $ 368200 charge for acquired in-process research and development direct result of transaction is excluded from unaudited pro forma information above.
 unaudited pro forma results not necessarily indicative of results company have attained had acquisitions of cytyc occurred at beginning of periods presented.
prior to close merger board of directors of hologic and cytyc approved modification to certain outstanding equity awards for cytyc employees.
 modification provided for acceleration of vesting upon close of merger for those awards did not provide for acceleration upon change of control of original terms of award.
 modification made so company will not incur stock based compensation charges if awards continued to vest under original terms.
 credit agreement on october 22 , 2007 , company and its domestic subsidiaries , entered into senior secured credit agreement with goldman sachs credit partners l. p.
 and certain other lenders , ( collectively , 201clenders 201d ).
 pursuant to terms and conditions credit agreement , lenders committed to provide senior secured financing in aggregate amount of up to $ 2550000.
 as of closing of cytyc merger , company borrowed $ 2350000 under credit facilities.

( approximate amounts in thousands except per share data ) | 2007
---------------------------------------------------------- | ---------
net revenue                                                | $ 1472400
net income                                                 | $ 62600
net income per share 2014basic                             | $ 0.52
net income per share 2014assuming dilution                 | $ 0.50


company has contingent liability to proper disposition of balances amounted to $ 1926. 8 mil- lion at december 31 , 2007.
 result of holding customers 2019 assets in escrow company has ongoing programs for realizing economic benefits year through favorable borrowing vendor arrangements with various banks.
 no loans outstanding as of december 31 , 2007 balances invested in short term high grade investments minimize risk to principal.
 leases company leases property under leases expire at various dates.
 agreements include escalation clauses provide for purchases and renewal options for periods from one to five years.
 future minimum operating lease payments for leases with remaining terms greater than one year for each years in five years ending december 31 , 2012  aggregate are as follows ( in thousands ) :.
 company has operating lease commitments to office equipment and computer hardware with annual lease payments of approximately $ 16. 0 million per year renew on short-term basis.
 rent expense incurred under all operating leases during years ended december 31, 2007 , 2006 and 2005 was $ 106. 4 million , $ 81. 5 million and $ 61. 1 million , respectively.
 data processing and maintenance services agreements.
 company has agreements with various vendors expire between 2008 and 2017  for portions computer data processing operations related functions.
 company 2019s estimated aggregate contractual obligation remaining under these agreements was approximately $ 888. 3 million as of december 31 , 2007.
 amount could be more or less depending on factors inflation rate introduction of new technologies changes in company 2019s data processing needs.
 employee benefit plans stock purchase plan prior to certegy merger ( note 6 ) employees participated in fidelity national financial , inc.
 employee stock purchase plan (.
subsequent certegy merger  company instituted own plan same terms as fidelity national financial , inc.
 plan.
 under terms both plans amendments eligible employees may voluntarily purchase at current market prices shares of fnf 2019s ( prior merger ) or fis 2019s ( post certegy merger ) common stock through payroll deductions.
 espp  employees may contribute between 3% ( 3 % ) and 15% ( 15 % ) of base salary and certain commissions.
 shares purchased allocated employees based upon contributions.
 company contributes varying matching amounts as specified in espp.
 company recorded expense of $ 15. 2 million , $ 13. 1 million and $ 11. 1 million  respectively for years ended december 31, 2007  2006 and 2005 relating participation of fis employees in espp.
 fidelity national information services , inc.
 subsidiaries and affiliates notes to consolidated combined financial statements 2014 (

2008       | 83382
---------- | --------
2009       | 63060
2010       | 35269
2011       | 21598
2012       | 14860
thereafter | 30869
total      | $ 249038


other-than-temporary impairments on investment securities.
 in april 2009  fasb revised guidance for recognition and presentation of other-than-temporary impairments.
 new guidance amends recognition guidance for other-than-temporary impairments of debt securities expands financial statement disclosures for-than-temporary impairments on debt and equity securities.
 for available for sale debt securities company no intent to sell likely not not required to sell prior to recovery only credit loss component of impairment recognized in earnings rest of fair value loss recognized in accumulated other comprehensive income ( loss ).
 company adopted guidance effective april 1, 2009.
 upon adoption company recognized cumulative-effect adjustment increase in retained earnings ( deficit ) and decrease in accumulated other comprehensive income ( loss ) : ( dollars in thousands ).
 measurement of fair value in inactive markets.
 in april 2009 fasb revised guidance for fair value measurements and disclosures reaffirms fair value is price received to sell asset or paid to transfer liability in orderly transaction between market participants at measurement date under current market conditions.
 reaffirms need to use judgment in determining if formerly active market become inactive and determining fair values when market become inactive.
 no impact to company 2019s financial statements upon adoption.
 fair value disclosures about pension plan assets.
 in december 2008  fasb revised guidance for employers 2019 disclosures about pension plan assets.
 new guidance requires additional disclosures about components of plan assets investment strategies for plan assets significant concentrations of risk within plan assets.
 company with fair value measurement of plan assets separated plan assets into three fair value hierarchy levels provided roll forward of changes in fair value of plan assets classified as level 3 in 2009 annual consolidated financial statements.
disclosures no effect on company 2019s accounting for plan benefits obligations.
 revisions to earnings per share calculation.
 june 2008  fasb revised authoritative guidance for earnings per share for determining instruments granted in share-based payment transactions are participating securities.
 new guidance requires unvested share-based payment awards non- forfeitable rights to dividends as separate class of common stock included in earnings per share calculation two-class method.
 company 2019s restricted share awards meet this definition included in basic earnings per share calculation.
 additional disclosures for derivative instruments.
 in march 2008  fasb issued authoritative guidance for derivative instruments hedging activities requires enhanced disclosures on derivative instruments hedged items.
 january 1, 2009  company adopted additional disclosure for equity index put options.
 no comparative information for periods prior to effective date required.
 guidance no impact on company records derivatives.

cumulative-effect adjustment gross | $ 65658
---------------------------------- | --------------
tax                                | -8346 ( 8346 )
cumulative-effect adjustment net   | $ 57312


table of contents statutory surplus table sets forth statutory surplus for company 2019s insurance companies as of december 31 , 2012 and 2011:.
 statutory capital and surplus for.
 life insurance subsidiaries  including domestic captive insurance subsidiaries decreased by $ 978  due to variable annuity surplus impacts of $ 425 , $ 200 increase in reserves on change in valuation basis $ 200 transfer of mutual funds business from.
 life insurance companies to life holding company increase in asset valuation reserve of $ 115.
 january 2013 statutory gain from sale of retirement plans and individual life businesses company's pro forma january 2 , 2013.
 life statutory surplus was estimated to be $ 8. 1 billion  before approximately $ 1. 5 billion in extraordinary dividends and return of capital to hfsg holding company.
 statutory capital and surplus for property and casualty insurance subsidiaries increased by $ 233 , due to statutory net income  after tax  of $ 727 , unrealized gains of $ 249 , increase in statutory admitted deferred tax assets of $ 77  capital contributions of $ 14  increase of statutory admitted assets of $ 7 , offset by dividends to hfsg holding company of $ 841.
 net income and dividends are net of interest payments and dividends on intercompany note between hartford holdings .
 and hartford fire insurance company.
 company holds regulatory capital and surplus for operations in japan.
 under company 2019s statutory capital and surplus was $ 1. 1 billion and $ 1. 3 billion as of december 31 , 2012 and 2011 , respectively.
 statutory capital company stockholders 2019 equity  prepared using.
 generally accepted accounting principles.
gaap 201d ) was $ 22. 4 billion as of december 31, 2012.
 company 2019s estimated aggregate statutory capital surplus  prepared national association of insurance commissioners 2019 accounting practices procedures manual ( 201cu. s.
 stat 201d ) was $ 14. 1 billion as of december 31 , 2012.
 significant differences between u. s.
 gaap stockholders 2019 equity aggregate statutory capital surplus u. s.
 stat include : 2022 u. s.
 stat excludes equity of non-insurance foreign insurance subsidiaries not held by u. s.
 insurance subsidiaries.
 2022 costs company to acquire insurance policies are deferred under u. s.
 gaap costs expensed immediately under u. s.
 2022 temporary differences between book and tax basis of asset or liability recorded as deferred tax assets evaluated for recoverability under u. s.
 gaap amounts deferred subject to limitations under u. s.
 stat.
 2022 assumptions in determination of life benefit reserves prescribed under u. s.
 stat  assumptions under u. s.
 gaap are company 2019s best estimates.
 methodologies for determining life insurance reserve amounts may be different.
 reserving for living benefit reserves under u. s.
 stat addressed by commissioners 2019 annuity reserving valuation methodology related actuarial guidelines under u. s.
 gaap  living benefits may be considered embedded derivatives recorded at fair value or considered sop 03-1 reserves.
 sensitivity of life insurance reserves to changes in equity markets different between u. s.
 gaap and u. s.
 stat.
 2022 difference between amortized cost and fair value of fixed maturity other investments  net of tax recorded as increase or decrease to carrying value of related asset equity under u. s.
 gaap , u. s.
 stat records certain securities at fair value equity securities lower rated bonds required by naic to recorded at lower of amortized cost or fair value.
 2022 u. s.
 stat for life insurance companies establishes formula reserve for realized unrealized losses due to default and equity risks with certain invested assets ( asset valuation reserve ) . s.
 gaap not.
 for realized gains and losses caused by changes in interest rates  u. s.
 stat for life insurance companies defers amortizes gains losses caused by changes in interest rates into income over original life to maturity of asset sold ( interest maintenance reserve ). s.
 gaap does not.
 2022 goodwill from acquisition of business tested for recoverability on annual basis ( or more frequently as necessary ) for. s.
 gaap  under. s.
 stat goodwill is amortized over period not to exceed 10 years amount of goodwill limited.

| 2012    | 2011
---------------------------------------------------------------------------------- | ------- | -------
u.s . life insurance subsidiaries includes domestic captive insurance subsidiaries | $ 6410  | $ 7388
property and casualty insurance subsidiaries                                       | 7645    | 7412
total                                                                              | $ 14055 | $ 14800


delivered 2015 compared to seven 2014 ).
 increases partially offset by lower net sales $ 350 million for c-130 program due to fewer aircraft deliveries ( 21 aircraft delivered 2015 compared to 24 2014 ) lower sustainment activities aircraft contract mix ; approximately $ 200 million due to decreased volume lower risk retirements programs ; approximately $ 195 million for f-16 program due to fewer deliveries ( 11 aircraft delivered 2015 compared to 17 2014 approximately $ 190 million for f-22 program decreased sustainment activities.
 aeronautics 2019 operating profit 2015 increased $ 32 million  or 2% ( 2 % ) compared to 2014.
 operating profit increased by approximately $ 240 million for f-35 production contracts due to increased volume risk retirements approximately $ 40 million for c-5 program due to increased risk retirements.
 increases offset by lower operating profit $ 90 million for f-22 program due to lower risk retirements $ 70 million for c-130 program reasons lower net sales approximately $ 80 million due to decreased volume risk retirements on programs.
 adjustments not related to volume  including net profit booking rate adjustments other matters approximately $ 100 million higher in 2015 compared to 2014.
 backlog backlog increased in 2016 compared to 2015 due to higher orders on f-35 production sustainment programs.
 backlog increased in 2015 compared to 2014 due to higher orders on f-35 and c-130 programs.
 expect aeronautics 2019 2017 net sales to increase low-double digit percentage range compared to 2016 due to increased volume on f-35 program.
 operating profit expected to increase slightly lower percentage range driven by increased volume on f-35 program partially offset by contract mix slight decrease in operating margins between years.
missiles fire control mfc business segment provides air missile defense systems tactical missiles air-to-ground precision strike weapon systems logistics fire control systems mission operations support readiness engineering support integration services manned unmanned ground vehicles energy management solutions.
 mfc 2019s major programs include pac-3  thaad multiple launch rocket system hellfire jassm javelin apache sniper ae  low altitude navigation targeting infrared night ( lantirn ae ) special operations forces contractor logistics support services ( sof clss ).
 2016 submitted bid for special operations forces global logistics support services ( sof glss ) contract  competitive follow-on contract to sof clss.
 anticipate award decision contract mid-2017.
 mfc 2019s operating results included millions ).
 2016 compared to 2015 mfc 2019s net sales 2016 decreased $ 162 million  or 2% ( 2 % ) compared to 2015.
 decrease attributable to lower net sales of $ 205 million for air missile defense programs due decreased volume primarily thaad ) lower net sales $ 95 million due to lower volume on various programs.
 decreases partially offset by $ 75 million increase for tactical missiles programs due increased deliveries primarily hellfire ) $ 70 million for fire control programs due to increased volume sof clss ).
 mfc 2019s operating profit 2016 decreased $ 264 million  or 21% ( 21 % )  compared to 2015.
 operating profit decreased approximately $ 145 million for air missile defense programs due to lower risk retirements ( pac-3 thaad ) reserve for contractual matter $ 45 million for tactical missiles programs due lower risk retirements javelin ) $ 45 million for fire control programs due to lower risk retirements ( apache ) program mix.
adjustments not related to volume including net profit booking rate adjustments reserves $ 225 million lower 2016 compared to 2015.

| 2016             | 2015             | 2014
------------------ | ---------------- | ---------------- | ----------------
net sales          | $ 6608           | $ 6770           | $ 7092
operating profit   | 1018             | 1282             | 1344
operating margin   | 15.4% ( 15.4 % ) | 18.9% ( 18.9 % ) | 19.0% ( 19.0 % )
backlog atyear-end | $ 14700          | $ 15500          | $ 13300


monitor status capital markets regularly evaluate effect changes in capital market conditions on ability to execute announced growth plans fund liquidity needs.
 expect to continue meeting financing liquidity needs primarily through commercial paper borrowings , issuances of senior notes  access to long-term committed credit facilities.
 if conditions in lodging industry deteriorate or if disruptions in capital markets place in aftermath of 2008 worldwide financial crisis and events september 11 , 2001 , may be unable to place some or all commercial paper on temporary or extended basis may rely more on borrowings under credit facility, believe adequate to fund liquidity needs including repayment of debt obligations but may carry higher cost than commercial paper.
 continue ample flexibility under credit facility 2019s covenants expect undrawn bank commitments under credit facility will remain available even if business conditions deteriorate markedly.
 cash from operations cash from operations and non-cash items for last three fiscal years are as follows:.
 non-cash items ( 1 ) 287 1397 514 ( 1 ) includes depreciation , amortization  share-based compensation  deferred income taxes  contract investment amortization.
 ratio of current assets to current liabilities was 0. 4 to 1. 0 at year-end 2018 and 0. 5 to 1. 0 at year-end 2017.
 minimize working capital through cash management  strict credit-granting policies  aggressive collection efforts.
 have significant borrowing capacity under credit facility should need additional working capital.
 investing activities cash flows acquisition of business  net of cash acquired.
 cash outflows of $ 2392 million in 2016 due to starwood combination.
 see footnote 3.
 dispositions and acquisitions for more information.
 capital expenditures and other investments.
made capital expenditures of $ 556 million in 2018 , $ 240 million in 2017  $ 199 million in 2016.
 capital expenditures in 2018 increased by $ 316 million compared to 2017  primarily reflecting acquisition sheraton grand phoenix  improvements to worldwide systems net higher spending on several owned properties.
 capital expenditures in 2017 increased by $ 41 million compared to 2016  primarily due to improvements to worldwide systems improvements to hotels acquired in starwood combination.
 expect spending on capital expenditures other investments total approximately $ 500 million to $ 700 million for 2019  including acquisitions  loan advances  equity other investments  contract acquisition costs various capital expenditures ( including approximately $ 225 million for maintenance capital spending ).
 sold lodging properties  completed and under development  subject to long-term management agreements.
 ability of third-party purchasers to raise debt and equity capital necessary to acquire properties depends on perceived risks in lodging industry constraints in capital markets.
 monitor status capital markets regularly evaluate potential impact of changes in capital market conditions on business operations.
 in starwood combination  acquired various hotels joint venture interests in hotels  most sold or seeking to sell  in 2018 acquired sheraton grand phoenix  expect to renovate and sell subject to long-term management agreement.
 expect to continue making selective opportunistic investments to add units to lodging business may include property acquisitions  new construction  loans  guarantees  noncontrolling equity investments.
 seek to minimize capital invested in business through asset sales subject to long term operating or franchise agreements.
fluctuations in values hotel real estate little impact on our business results because 1 we own less than one percent of hotels we operate or franchise 2 management franchise fees based upon hotel revenues profits than current hotel property values 3 our management agreements do not terminate upon hotel sale or foreclosure.
 dispositions.
 property and asset sales generated $ 479 million cash proceeds in 2018 and $ 1418 million in 2017.
 see footnote 3.
 dispositions and acquisitions for more information on dispositions.

( $ in millions )    | 2018   | 2017   | 2016
-------------------- | ------ | ------ | ------
cash from operations | $ 2357 | $ 2227 | $ 1619
non-cash items ( 1 ) | 287    | 1397   | 514


repatriated related. s.
 tax liability may be reduced by foreign income taxes paid on earnings.
 as of november 30 , 2012  cumulative of earnings upon.
 income taxes not provided is approximately $ 2. 9 billion.
 unrecognized deferred tax liability for earnings is approximately $ 0. 8 billion.
 as of november 30 , 2012.
 net operating loss carryforwards of approximately $ 33. 7 million for federal and $ 77. 7 million for state.
 federal , state and foreign tax credit carryforwards of approximately $ 1. 9 million , $ 18. 0 million and $ 17. 6 million .
 net operating loss carryforward assets  federal tax credits and foreign tax credits expire in from fiscal 2017 through 2032.
 state tax credit carryforwards can be carried forward indefinitely.
 net operating loss carryforward assets and certain credits subject to annual limitation under internal revenue code section 382 expected to be fully realized.
 tracking deferred tax attributes of $ 45. 0 million not recorded in financial statements accounting standards related stock-based compensation.
 amounts no longer included in gross or net deferred tax assets.
 benefit of deferred tax assets will be recorded to equity if when they reduce taxes payable.
 as of november 30 , 2012 valuation allowance of $ 28. 2 million established for certain deferred tax assets related to impairment investments and foreign assets.
 for fiscal 2012  total change in valuation allowance was $ 23. 0 million  of $ 2. 1 million was recorded as a tax benefit through income statement.
 accounting for uncertainty in income taxes during fiscal 2012 and 2011 aggregate changes in total gross amount of unrecognized tax benefits are summarized as ( in thousands ) :.
as of november 30 , 2012 , combined accrued interest and penalties related to tax positions taken on our tax returns included in non-current income taxes payable was approximately $ 12. 5 million.
 we file income tax returns in u. s.
 federal basis and in many u. s.
 state and foreign jurisdictions.
 subject to continual examination of income tax returns by irs and other domestic and foreign tax authorities.
 major tax jurisdictions are u. s. , ireland california.
 for. earliest fiscal years open for examination are 2005, 2006 2008 , respectively.
 we regularly assess likelihood of outcomes from these examinations to determine adequacy of provision for income taxes reserved for potential adjustments from current examinations.
 believe such estimates to be reasonable ; no assurance that final determination of examinations will not adverse effect on operating results and financial position.
 in august 2011 , canadian income tax examination covering fiscal years 2005 through 2008 completed.
 accrued tax and interest related to these years was approximately $ 35 million previously reported in long-term income taxes payable.
 reclassified approximately $ 17 million to short-term income taxes payable decreased deferred tax assets by approximately $ 18 million in with resolution.
 timing of resolution of income tax examinations is highly uncertain as are amounts and timing of tax payments part of audit settlement process.
 these events could cause large fluctuations in balance sheet classification of current and non-current assets and liabilities.
 company believes before end of fiscal 2013 , it is reasonably possible table of contents adobe systems incorporated notes to consolidated financial statements

| 2012             | 2011
---------------------------------------------------------------------------- | ---------------- | ----------------
beginning balance                                                            | $ 163607         | $ 156925
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 1038             | 11901
gross decreases in unrecognized tax benefits 2013 prior year tax positions   | 2014             | -4154 ( 4154 )
gross increases in unrecognized tax benefits 2013 current year tax positions | 23771            | 32420
settlements with taxing authorities                                          | -1754 ( 1754 )   | -29101 ( 29101 )
lapse of statute of limitations                                              | -25387 ( 25387 ) | -3825 ( 3825 )
foreign exchange gains and losses                                            | -807 ( 807 )     | -559 ( 559 )
ending balance                                                               | $ 160468         | $ 163607