| _id | dd4bb51aa |
| title |  |
| text | the following tables present a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs ( level 3 ) for 2017 and 2016 , respectively: .

purchases , issuances and settlements , net .
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( 4 ) balance as of december 31 , 2016 .
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$ 140 the company 2019s postretirement benefit plans have different levels of funded status and the assets are held under various trusts .

the investments and risk mitigation strategies for the plans are tailored specifically for each trust .
in setting new strategic asset mixes , consideration is given to the likelihood that the selected asset allocation will effectively fund the projected plan liabilities and meet the risk tolerance criteria of the company .

the company periodically updates the long-term , strategic asset allocations for these plans through asset liability studies and uses various analytics to determine the optimal asset allocation .
considerations include plan liability characteristics , liquidity needs , funding requirements , expected rates of return and the distribution of returns .

strategies to address the goal of ensuring sufficient assets to pay benefits include target allocations to a broad array of asset classes and , within asset classes , strategies are employed to provide adequate returns , diversification and liquidity .
in 2012 , the company implemented a de-risking strategy for the american water pension plan after conducting an asset-liability study to reduce the volatility of the funded status of the plan .

as part of the de-risking strategy , the company revised the asset allocations to increase the matching characteristics of fixed-income assets relative to liabilities .
the fixed income portion of the portfolio was designed to match the bond-like and long-dated nature of the postretirement liabilities .

in 2017 , the company further increased its exposure to liability-driven investing and increased its fixed-income allocation to 50% ( 50 % ) , up from 40% ( 40 % ) , in an effort to further decrease the funded status volatility of the plan and hedge the portfolio from movements in interest rates .
in 2012 , the company also implemented a de-risking strategy for the medical bargaining trust within the plan to minimize volatility .

in 2017 , the company conducted a new asset-liability study that indicated medical trend inflation that outpaced the consumer price index by more than 2% ( 2 % ) for the last 20 years .
given continuously rising medical costs , the company decided to increase the equity exposure of the portfolio to 30% ( 30 % ) , up from 20% ( 20 % ) , while reducing the fixed-income portion of the portfolio from 80% ( 80 % ) to 70% ( 70 % ) .

the company also conducted an asset-liability study for the post-retirement non-bargaining medical plan .
its allocation was adjusted to make it more conservative , reducing the equity allocation from 70% ( 70 % ) to 60% ( 60 % ) and increasing the fixed- income allocation from 30% ( 30 % ) to 40% ( 40 % ) .
the post-retirement medical non-bargaining plan 2019s equity allocation was reduced due to the cap on benefits for some non-union participants and resultant reduction in the plan 2019s liabilities .

these changes will take place in 2018 .
the company engages third party investment managers for all invested assets .
managers are not permitted to invest outside of the asset class ( e.g .
fixed income , equity , alternatives ) or strategy for which they have been appointed .
investment management agreements and recurring performance and attribution analysis are used as tools to ensure investment managers invest solely within the investment strategy they have been provided .

futures and options may be used to adjust portfolio duration to align with a plan 2019s targeted investment policy.

 |
| table | | level 3
--------------------------------------- | -------
balance as of january 1 2017            | $ 140
actual return on assets                 | 2
purchases issuances and settlements net | 136
balance as of december 31 2017          | $ 278 |


| _id | dd4bc5ca8 |
| title |  |
| text | mutual and pooled funds shares of mutual funds are valued at the net asset value ( nav ) quoted on the exchange where the fund is traded and are classified as level 1 assets .
units of pooled funds are valued at the per unit nav determined by the fund manager and are classified as level 2 assets .
the investments are utilizing nav as a practical expedient for fair value .

corporate and government bonds corporate and government bonds are classified as level 2 assets , as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings .

mortgage and asset-backed securities mortgage and asset 2013backed securities are classified as level 2 assets , as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields , credit ratings , and purpose of the underlying loan .
real estate pooled funds real estate pooled funds are classified as level 3 assets , as they are carried at the estimated fair value of the underlying properties .

estimated fair value is calculated utilizing a combination of key inputs , such as revenue and expense growth rates , terminal capitalization rates , and discount rates .
these key inputs are consistent with practices prevailing within the real estate investment management industry .
other pooled funds other pooled funds classified as level 2 assets are valued at the nav of the shares held at year end , which is based on the fair value of the underlying investments .

securities and interests classified as level 3 are carried at the estimated fair value of the underlying investments .
the underlying investments are valued based on bids from brokers or other third-party vendor sources that utilize expected cash flow streams and other uncorroborated data , including counterparty credit quality , default risk , discount rates , and the overall capital market liquidity .

insurance contracts insurance contracts are classified as level 3 assets , as they are carried at contract value , which approximates the estimated fair value .
the estimated fair value is based on the fair value of the underlying investment of the insurance company .
contributions and projected benefit payments pension contributions to funded plans and benefit payments for unfunded plans for fiscal year 2015 were $ 137.5 .

contributions resulted primarily from an assessment of long-term funding requirements of the plans and tax planning .
benefit payments to unfunded plans were due primarily to the timing of retirements and cost reduction actions .
we anticipate contributing $ 100 to $ 120 to the defined benefit pension plans in 2016 .
these contributions are driven primarily by benefit payments for unfunded plans , which are dependent upon timing of retirements and actions to reorganize the business .

projected benefit payments , which reflect expected future service , are as follows: .

these estimated benefit payments are based on assumptions about future events .
actual benefit payments may vary significantly from these estimates.

 |
| table | | u.s .   | international
------------- | ------- | -------------
2016          | $ 129.0 | $ 52.0
2017          | 135.8   | 53.5
2018          | 142.2   | 55.3
2019          | 149.6   | 57.5
2020          | 157.4   | 57.8
2021 20132025 | 917.9   | 332.3 |


| _id | dd4c439dc |
| title |  |
| text | at december 31 , 2015 and 2014 , options for 5 million and 6 million shares of common stock were exercisable at a weighted-average price of $ 55.42 and $ 56.21 , respectively .
the total intrinsic value of options exercised was approximately $ .1 billion during 2016 , 2015 and 2014 .
cash received from option exercises under all incentive plans for 2016 , 2015 and 2014 was approximately $ .1 billion , $ .1 billion and $ .2 billion , respectively .

the tax benefit realized from option exercises under all incentive plans was insignificant for 2016 , 2015 and 2014 .
shares of common stock available during the next year for the granting of options and other awards under the incentive plans were approximately 39 million shares at december 31 , 2016 .
total shares of pnc common stock authorized for future issuance under all equity compensation plans totaled approximately 40 million shares at december 31 , 2016 .

during 2016 , we issued approximately 2 million common shares from treasury stock in connection with stock option exercise activity .
as with past exercise activity , we currently intend to utilize primarily treasury stock for any future stock option exercises .

incentive/performance unit awards and restricted share/restricted share unit awards the fair value of nonvested incentive/performance unit awards and restricted share/restricted share unit awards is initially determined based on prices not less than the market value of our common stock on the date of grant with a reduction for estimated forfeitures .

the value of certain incentive/ performance unit awards is subsequently remeasured based on the achievement of one or more financial and other performance goals .
additionally , certain incentive/ performance unit awards require subsequent adjustment to their current market value due to certain discretionary risk review triggers .

the weighted-average grant date fair value of incentive/ performance unit awards and restricted share/restricted share unit awards granted in 2016 , 2015 and 2014 was $ 78.37 , $ 91.57 and $ 80.79 per share , respectively .
the total intrinsic value of incentive/performance unit and restricted share/ restricted share unit awards vested during 2016 , 2015 and 2014 was approximately $ .1 billion , $ .2 billion and $ .1 billion , respectively .

we recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program .
table 78 : nonvested incentive/performance unit awards and restricted share/restricted share unit awards 2013 rollforward ( a ) shares in millions nonvested incentive/ performance units shares weighted- average date fair nonvested restricted share/ restricted weighted- average grant date fair value .

( a ) forfeited awards during 2016 were insignificant .
( b ) includes adjustments for achieving specific performance goals for incentive/ performance unit share awards granted in prior periods .
in table 78 , the units and related weighted-average grant date fair value of the incentive/performance unit share awards exclude the effect of dividends on the underlying shares , as those dividends will be paid in cash if and when the underlying shares are issued to the participants .

blackrock long-term incentive plans ( ltip ) blackrock adopted the 2002 ltip program to help attract and retain qualified professionals .
at that time , we agreed to transfer up to four million shares of blackrock common stock to fund a portion of the 2002 ltip program and future ltip programs approved by blackrock 2019s board of directors .

in 2009 , our obligation to deliver any remaining blackrock common shares was replaced with an obligation to deliver shares of blackrock 2019s series c preferred stock held by us .
in 2016 , we transferred .5 million shares of blackrock series c preferred stock to blackrock in connection with our obligation .
at december 31 , 2016 , we held approximately .8 million shares of blackrock series c preferred stock which were available to fund our obligations .

see note 23 subsequent events for information on our february 1 , 2017 transfer of .5 million shares of the series c preferred stock to blackrock to satisfy a portion of our ltip obligation .
we account for our blackrock series c preferred stock at fair value , which offsets the impact of marking-to-market the obligation to deliver these shares to blackrock .
see note 6 fair value for additional information regarding the valuation of the blackrock series c preferred stock .

the pnc financial services group , inc .
2013 form 10-k 139

 |
| table | shares in millions december 31 2015 | nonvested incentive/ performance units shares 2 | weighted- average grant date fair value $ 79.27 | nonvested restricted share/ restricted share units 3 | weighted- average grant date fair value $ 79.26
----------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ---------------------------------------------------- | -----------------------------------------------
granted ( b )                       | 1                                               | $ 77.77                                         | 1                                                    | $ 78.71
vested/released ( b )               | -1 ( 1 )                                        | $ 71.59                                         | -1 ( 1 )                                             | $ 65.53
december 31 2016                    | 2                                               | $ 81.42                                         | 3                                                    | $ 83.27 |


| _id | dd4b88498 |
| title |  |
| text | value , which may be maturity , the company does not consider these investments to be other-than-temporarily impaired as of december 31 , 2005 and 2004 .
gross realized gains and losses for 2005 were $ 15000 and $ 75000 , respectively .
gross realized gains and losses for 2004 were $ 628000 and $ 205000 , respectively .
gross realized gains for 2003 were $ 1249000 .
there were no gross realized losses for 2003 .
maturities stated are effective maturities .
f .

maturities stated are effective maturities .
f .
restricted cash at december 31 , 2005 and 2004 , the company held $ 41482000 and $ 49847000 , respectively , in restricted cash .
at december 31 , 2005 and 2004 the balance was held in deposit with certain banks predominantly to collateralize conditional stand-by letters of credit in the names of the company's landlords pursuant to certain operating lease agreements .
g .

g .
property and equipment property and equipment consist of the following at december 31 ( in thousands ) : depreciation expense for the years ended december 31 , 2005 , 2004 and 2003 was $ 26307000 , $ 28353000 and $ 27988000 respectively .
in 2005 and 2004 , the company wrote off certain assets that were fully depreciated and no longer utilized .
there was no effect on the company's net property and equipment .
additionally , the company wrote off or sold certain assets that were not fully depreciated .

the net loss on disposal of those assets was $ 344000 for 2005 and $ 43000 for 2004 .
h .
investments in accordance with the company's policy , as outlined in note b , "accounting policies" the company assessed its investment in altus pharmaceuticals , inc .

( "altus" ) , which it accounts for using the cost method , and determined that there had not been any adjustments to the fair values of that investment which would indicate a decrease in its fair value below the carrying value that would require the company to write down the investment basis of the asset , as of december 31 , 2005 and december 31 , 2004 .
the company's cost basis carrying value in its outstanding equity and warrants of altus was $ 18863000 at december 31 , 2005 and 2004. .

 |
| table | | 2005    | 2004
---------------------------------------------- | ------- | -------
furniture and equipment                        | $ 98387 | $ 90893
leasehold improvements                         | 66318   | 65294
computers                                      | 18971   | 18421
software                                       | 18683   | 16411
total property and equipment gross             | 202359  | 191019
less accumulated depreciation and amortization | 147826  | 126794
total property and equipment net               | $ 54533 | $ 64225 |


| _id | dd4c11a22 |
| title |  |
| text | the agencies consider many factors in determining the final rating of an insurance company .
one consideration is the relative level of statutory surplus necessary to support the business written .
statutory surplus represents the capital of the insurance company reported in accordance with accounting practices prescribed by the applicable state insurance department .
see part i , item 1a .

see part i , item 1a .
risk factors 2014 201cdowngrades in our financial strength or credit ratings , which may make our products less attractive , could increase our cost of capital and inhibit our ability to refinance our debt , which would have a material adverse effect on our business , financial condition , results of operations and liquidity . 201d statutory surplus the table below sets forth statutory surplus for the company 2019s insurance companies as of december 31 , 2014 and 2013: .

statutory capital and surplus for the u.s .
life insurance subsidiaries , including domestic captive insurance subsidiaries in 2013 , increased by $ 518 , primarily due to variable annuity surplus impacts of $ 788 , net income from non-variable annuity business of $ 187 , increases in unrealized gains from other invested assets carrying values of $ 138 , partially offset by returns of capital of $ 500 , and changes in reserves on account of change in valuation basis of $ 100 .

effective april 30 , 2014 the last domestic captive ceased operations .
statutory capital and surplus for the property and casualty insurance increased by $ 47 , primarily due to statutory net income of $ 1.1 billion , and unrealized gains on investments of $ 1.4 billion , largely offset by dividends to the hfsg holding company of $ 2.5 billion .
the company also held regulatory capital and surplus for its former operations in japan until the sale of those operations on june 30 , 2014 .

under the accounting practices and procedures governed by japanese regulatory authorities , the company 2019s statutory capital and surplus was $ 1.2 billion as of december 31 , 2013.

 |
| table | | 2014    | 2013
------------------------------------------------------------------------------------------ | ------- | -------
u.s . life insurance subsidiaries includes domestic captive insurance subsidiaries in 2013 | $ 7157  | $ 6639
property and casualty insurance subsidiaries                                               | 8069    | 8022
total                                                                                | $ 15226 | $ 14661 |


| _id | dd4bd7228 |
| title |  |
| text | part ii item 5 .
market for registrant 2019s common equity and related stockholder matters market information our common stock has been traded on the new york stock exchange ( 2018 2018nyse 2019 2019 ) under the symbol 2018 2018exr 2019 2019 since our ipo on august 17 , 2004 .
prior to that time there was no public market for our common stock .

the following table sets forth , for the periods indicated , the high and low bid price for our common stock as reported by the nyse and the per share dividends declared : dividends high low declared .

on february 28 , 2006 , the closing price of our common stock as reported by the nyse was $ 15.00 .
at february 28 , 2006 , we had 166 holders of record of our common stock .
holders of shares of common stock are entitled to receive distributions when declared by our board of directors out of any assets legally available for that purpose .

as a reit , we are required to distribute at least 90% ( 90 % ) of our 2018 2018reit taxable income 2019 2019 is generally equivalent to our net taxable ordinary income , determined without regard to the deduction for dividends paid , to our stockholders annually in order to maintain our reit qualifications for u.s .
federal income tax purposes .

federal income tax purposes .
unregistered sales of equity securities and use of proceeds on june 20 , 2005 , we completed the sale of 6200000 shares of our common stock , $ .01 par value , for $ 83514 , which we reported in a current report on form 8-k filed with the securities and exchange commission on june 24 , 2005 .
we used the proceeds for general corporate purposes , including debt repayment .

the shares were issued pursuant to an exemption from registration under the securities act of 1933 , as amended.

 |
| table | | high    | low     | dividends declared
----------------------------------------------- | ------- | ------- | ------------------
period from august 17 2004 to september 30 2004 | $ 14.38 | $ 12.50 | $ 0.1113
quarter ended december 31 2004                  | 14.55   | 12.60   | 0.2275
quarter ended march 31 2005                     | 14.30   | 12.55   | 0.2275
quarter ended june 30 2005                      | 14.75   | 12.19   | 0.2275
quarter ended september 30 2005                 | 16.71   | 14.32   | 0.2275
quarter ended december 31 2005                  | 15.90   | 13.00   | 0.2275 |


| _id | dd4bb10f0 |
| title |  |
| text | table of contents performance graph the following graph compares the total return , assuming reinvestment of dividends , on an investment in the company , based on performance of the company's common stock , with the total return of the standard & poor's 500 composite stock index ( "s&p 500" ) and the dow jones united states travel and leisure index for a five year period by measuring the changes in common stock prices from december 31 , 2013 to december 31 , 2018. .

the stock performance graph assumes for comparison that the value of the company's common stock and of each index was $ 100 on december 31 , 2013 and that all dividends were reinvested .
past performance is not necessarily an indicator of future results.

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| table | | 12/13  | 12/14  | 12/15  | 12/16  | 12/17  | 12/18
-------------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd .    | 100.00 | 176.94 | 220.72 | 182.99 | 271.25 | 227.46
s&p 500                          | 100.00 | 113.69 | 115.26 | 129.05 | 157.22 | 150.33
dow jones u.s . travel & leisure | 100.00 | 116.37 | 123.23 | 132.56 | 164.13 | 154.95 |


| _id | dd4bcd94e |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements the following table summarizes the preliminary allocation of the aggregate purchase consideration paid and the amounts of assets acquired and liabilities assumed based upon their estimated fair value at the date of acquisition ( in thousands ) : preliminary purchase price allocation .

( 1 ) consists of customer-related intangibles of approximately $ 80.0 million and network location intangibles of approximately $ 38.0 million .
the customer-related intangibles and network location intangibles are being amortized on a straight-line basis over periods of up to 20 years .
( 2 ) the company expects that the goodwill recorded will be deductible for tax purposes .
the goodwill was allocated to the company 2019s international rental and management segment .

ghana acquisition 2014on december 6 , 2010 , the company entered into a definitive agreement with mtn group limited ( 201cmtn group 201d ) to establish a joint venture in ghana .
the joint venture is controlled by a holding company of which a wholly owned subsidiary of the company ( the 201catc ghana subsidiary 201d ) holds a 51% ( 51 % ) interest and mobile telephone networks ( netherlands ) b.v. , a wholly owned subsidiary of mtn group ( the 201cmtn ghana subsidiary 201d ) holds a 49% ( 49 % ) interest .

the joint venture is managed and controlled by the company and owns a tower operations company in ghana .
pursuant to the agreement , on may 6 , 2011 , august 11 , 2011 and december 23 , 2011 , the joint venture acquired 400 , 770 and 686 communications sites , respectively , from mtn group 2019s operating subsidiary in ghana for an aggregate purchase price of $ 515.6 million ( including contingent consideration of $ 2.3 million and value added tax of $ 65.6 million ) .

the aggregate purchase price was subsequently increased to $ 517.7 million ( including contingent consideration of $ 2.3 million and value added tax of $ 65.6 million ) after certain post-closing adjustments .
under the terms of the purchase agreement , legal title to certain of the communications sites acquired on december 23 , 2011 will be transferred upon fulfillment of certain conditions by mtn group .

prior to the fulfillment of these conditions , the company will operate and maintain control of these communications sites , and accordingly , reflect these sites in the allocation of purchase price and the consolidated operating results .
in december 2011 , the company signed an amendment to its agreement with mtn group , which requires the company to make additional payments upon the conversion of certain barter agreements with other wireless carriers to cash-paying master lease agreements .

the company currently estimates the fair value of remaining potential contingent consideration payments required to be made under the amended agreement to be between zero and $ 1.0 million and is estimated to be $ 0.9 million using a probability weighted average of the expected outcomes at december 31 , 2012 .
the company has previously made payments under this arrangement of $ 2.6 million .

during the year ended december 31 , 2012 , the company recorded an increase in fair value of $ 0.4 million as other operating expenses in the consolidated statements of operations.

 |
| table | | preliminary purchase price allocation
--------------------------------- | -------------------------------------
non-current assets                | $ 24460
property and equipment            | 138959
intangible assets ( 1 )           | 117990
other non-current liabilities     | -18195 ( 18195 )
fair value of net assets acquired | $ 263214
goodwill ( 2 )                    | 47481 |


| _id | dd4c5e502 |
| title |  |
| text | the remaining change in other expense was driven primarily by changes on foreign currency exchange instruments as further discussed in note 7 in 201citem 8 .
financial statements and supplementary data 201d of this report .
income taxes .

for discussion on income taxes , see note 8 in 201citem 8 .
financial statements and supplementary data 201d of this report .
discontinued operations discontinued operations net earnings increased primarily due to the gain on the sale of our aggregate ownership interests in enlink and the general partner of $ 2.6 billion ( $ 2.2 billion after-tax ) .
for discussion on discontinued operations , see note 19 in 201citem 8 .

financial statements and supplementary data 201d of this report 201d of this report .
results of operations 2013 2017 vs .
2016 the graph below shows the change in net earnings from 2016 to 2017 .
the material changes are further discussed by category on the following pages .
to facilitate the review , these numbers are being presented before consideration of earnings attributable to noncontrolling interests .

$ 1308 ( $ 165 ) ( $ 4 ) $ 1 $ 63 $ 400 ( $ 397 ) $ 126 $ 1204 ( $ 1458 ) $ 1078 2016 upstream operations marketing operations exploration expenses dd&a g&a financing costs , net other ( 1 ) income discontinued operations net earnings ( 1 ) other in the table above includes asset impairments , asset dispositions , restructuring and transaction costs and other expenses .

the graph below presents the drivers of the upstream operations change presented above , with additional details and discussion of the drivers following the graph .
( $ 427 ) ( $ 427 ) $ 1395$ 1 395 $ 2176$ 2 176 $ 3484 2016 production volumes field prices hedging 2017 upstream operations expenses

 |
| table | | 2018         | 2017
---------------------------- | ------------ | ----------
current expense ( benefit )  | $ -70 ( 70 ) | $ 112
deferred expense ( benefit ) | 226          | -97 ( 97 )
total expense                | $ 156        | $ 15
effective income tax rate    | 17% ( 17 % ) | 2% ( 2 % ) |


| _id | dd4c5c572 |
| title |  |
| text | stock total return performance the following graph compares our total return to stockholders with the returns of the standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) and the dow jones us select health care providers index ( 201cpeer group 201d ) for the five years ended december 31 , 2014 .
the graph assumes an investment of $ 100 in each of our common stock , the s&p 500 , and the peer group on december 31 , 2009 , and that dividends were reinvested when paid. .

the stock price performance included in this graph is not necessarily indicative of future stock price performance .
table of contents

 |
| table | | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum        | $ 100      | $ 125      | $ 201      | $ 160      | $ 244      | $ 342
s&p 500    | $ 100      | $ 115      | $ 117      | $ 136      | $ 180      | $ 205
peer group | $ 100      | $ 112      | $ 123      | $ 144      | $ 198      | $ 252 |


| _id | dd4bb6870 |
| title |  |
| text | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2010 , 2009 , and 2008 ( 3 ) multilateral loans include loans funded and guaranteed by bilaterals , multilaterals , development banks and other similar institutions .
( 4 ) non-recourse debt of $ 708 million as of december 31 , 2009 was excluded from non-recourse debt and included in current and long-term liabilities of held for sale and discontinued businesses in the accompanying consolidated balance sheets .

non-recourse debt as of december 31 , 2010 is scheduled to reach maturity as set forth in the table below : december 31 , annual maturities ( in millions ) .

as of december 31 , 2010 , aes subsidiaries with facilities under construction had a total of approximately $ 432 million of committed but unused credit facilities available to fund construction and other related costs .
excluding these facilities under construction , aes subsidiaries had approximately $ 893 million in a number of available but unused committed revolving credit lines to support their working capital , debt service reserves and other business needs .

these credit lines can be used in one or more of the following ways : solely for borrowings ; solely for letters of credit ; or a combination of these uses .
the weighted average interest rate on borrowings from these facilities was 3.24% ( 3.24 % ) at december 31 , 2010 .
non-recourse debt covenants , restrictions and defaults the terms of the company 2019s non-recourse debt include certain financial and non-financial covenants .

these covenants are limited to subsidiary activity and vary among the subsidiaries .
these covenants may include but are not limited to maintenance of certain reserves , minimum levels of working capital and limitations on incurring additional indebtedness .
compliance with certain covenants may not be objectively determinable .

as of december 31 , 2010 and 2009 , approximately $ 803 million and $ 653 million , respectively , of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements , and these amounts were included within 201crestricted cash 201d and 201cdebt service reserves and other deposits 201d in the accompanying consolidated balance sheets .

various lender and governmental provisions restrict the ability of certain of the company 2019s subsidiaries to transfer their net assets to the parent company .
such restricted net assets of subsidiaries amounted to approximately $ 5.4 billion at december 31 , 2010.

 |
| table | december 31,            | annual maturities ( in millions )
----------------------- | ---------------------------------
2011                    | $ 2577
2012                    | 657
2013                    | 953
2014                    | 1839
2015                    | 1138
thereafter              | 7957
total non-recourse debt | $ 15121 |


| _id | dd4bbd8a0 |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) maturities 2014as of december 31 , 2007 , aggregate carrying value of long-term debt , including capital leases , for the next five years and thereafter are estimated to be ( in thousands ) : year ending december 31 .

4 .
acquisitions during the years ended december 31 , 2007 , 2006 and 2005 , the company used cash to acquire a total of ( i ) 293 towers and the assets of a structural analysis firm for approximately $ 44.0 million in cash ( ii ) 84 towers and 6 in-building distributed antenna systems for approximately $ 14.3 million and ( iii ) 30 towers for approximately $ 6.0 million in cash , respectively .
the tower asset acquisitions were primarily in mexico and brazil under ongoing agreements .

during the year ended december 31 , 2005 , the company also completed its merger with spectrasite , inc .
pursuant to which the company acquired approximately 7800 towers and 100 in-building distributed antenna systems .
under the terms of the merger agreement , in august 2005 , spectrasite , inc .
merged with a wholly- owned subsidiary of the company , and each share of spectrasite , inc .
common stock converted into the right to receive 3.575 shares of the company 2019s class a common stock .

the company issued approximately 169.5 million shares of its class a common stock and reserved for issuance approximately 9.9 million and 6.8 million of class a common stock pursuant to spectrasite , inc .
options and warrants , respectively , assumed in the merger .
the final allocation of the $ 3.1 billion purchase price is summarized in the company 2019s annual report on form 10-k for the year ended december 31 , 2006 .

the acquisitions consummated by the company during 2007 , 2006 and 2005 , have been accounted for under the purchase method of accounting in accordance with sfas no .
141 201cbusiness combinations 201d ( sfas no .
141 ) .
the purchase prices have been allocated to the net assets acquired and the liabilities assumed based on their estimated fair values at the date of acquisition .

the company primarily acquired its tower assets from third parties in one of two types of transactions : the purchase of a business or the purchase of assets .
the structure of each transaction affects the way the company allocates purchase price within the consolidated financial statements .

in the case of tower assets acquired through the purchase of a business , such as the company 2019s merger with spectrasite , inc. , the company allocates the purchase price to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition .
the excess of the purchase price paid by the company over the estimated fair value of net assets acquired has been recorded as goodwill .

in the case of an asset purchase , the company first allocates the purchase price to property and equipment for the appraised value of the towers and to identifiable intangible assets ( primarily acquired customer base ) .
the company then records any remaining purchase price within intangible assets as a 201cnetwork location intangible . 201d

 |
| table | 2008                                                                                | $ 1817
------------------------------------------------------------------------------------------------- | ---------
2009                                                                                | 1241
2010                                                                                | 78828
2011                                                                                | 13714
2012                                                                                | 1894998
thereafter                                                                                | 2292895
total cash obligations                                                                            | $ 4283493
accreted value of the discount and premium of 3.00% ( 3.00 % ) notes and 7.125% ( 7.125 % ) notes | 1791
balance as of december 31 2007                                                                    | $ 4285284 |


| _id | dd4c4e8c8 |
| title |  |
| text | 5 .
other current assets other current assets consisted of the following at december 31: .

6 .
performance bonds and guaranty fund contributions cme clears and guarantees the settlement of cme , cbot and nymex contracts traded in their respective markets .
in its guarantor role , cme has precisely equal and offsetting claims to and from clearing firms on opposite sides of each contract , standing as an intermediary on every contract cleared .

clearing firm positions are combined to create a single portfolio for each clearing firm 2019s regulated and non-regulated accounts with cme for which performance bond and guaranty fund requirements are calculated .
to the extent that funds are not otherwise available to satisfy an obligation under the applicable contract , cme bears counterparty credit risk in the event that future market movements create conditions that could lead to clearing firms failing to meet their obligations to cme .

cme reduces its exposure through a risk management program that includes initial and ongoing financial standards for designation as a clearing firm , performance bond requirements and mandatory guaranty fund contributions .
each clearing firm is required to deposit and maintain balances in the form of cash , u.s .
government securities , bank letters of credit or other approved investments to satisfy performance bond and guaranty fund requirements .

all obligations and non-cash deposits are marked to market on a daily basis .
in addition , the rules and regulations of cbot require certain minimum financial requirements for delivery of physical commodities , maintenance of capital requirements and deposits on pending arbitration matters .
to satisfy these requirements , cbot clearing firms have deposited cash , u.s .
treasury securities and letters of credit .

treasury securities and letters of credit .
cme marks-to-market open positions at least twice a day , and requires payment from clearing firms whose positions have lost value and makes payments to clearing firms whose positions have gained value .
for select product offerings within newer markets , positions are marked-to-market once daily , with the capability to mark-to-market more frequently as market conditions warrant .

under the extremely unlikely scenario of simultaneous default by every clearing firm who has open positions with unrealized losses , the maximum exposure related to cme 2019s guarantee would be one half day of changes in fair value of all open positions , before considering cme 2019s ability to access defaulting clearing firms 2019 performance bond and guaranty fund balances as well as other available resources .

during 2010 , cme transferred an average of approximately $ 2.4 billion a day through its clearing system for settlement from clearing firms whose positions had lost value to clearing firms whose positions had gained value .
cme reduces its guarantee exposure through initial and maintenance performance bond requirements and mandatory guaranty fund contributions .
the company believes that the guarantee liability is immaterial and therefore has not recorded any liability at december 31 , 2010.

 |
| table | ( in millions )                                      | 2010    | 2009
---------------------------------------------------- | ------- | -------
refundable income tax                                | $ 61.0  | $ 24.1
net deferred income taxes ( note 14 )                | 18.3    | 23.8
prepaid technology license and maintenance contracts | 18.0    | 17.0
forward contract receivable ( note 20 )              | 11.8    | 27.3
receivables from brokers                             | 11.2    | 8.8
other prepaid expenses                               | 9.6     | 13.5
prepaid insurance                                    | 6.3     | 7.0
cboe exercise rights privilege                       | 2014    | 39.8
other                                                | 9.9     | 4.3
total                                                | $ 146.1 | $ 165.6 |


| _id | dd4bd2bd8 |
| title |  |
| text | notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts ) sales of businesses and investments 2013 primarily includes realized gains and losses relating to the sales of businesses , cumulative translation adjustment balances from the liquidation of entities and sales of marketable securities and investments in publicly traded and privately held companies in our rabbi trusts .

during 2009 , we realized a gain of $ 15.2 related to the sale of an investment in our rabbi trusts , which was partially offset by losses realized from the sale of various businesses .
losses in 2007 primarily related to the sale of several businesses within draftfcb for a loss of $ 9.3 and charges at lowe of $ 7.8 as a result of the realization of cumulative translation adjustment balances from the liquidation of several businesses .

vendor discounts and credit adjustments 2013 we are in the process of settling our liabilities related to vendor discounts and credits established during the restatement we presented in our 2004 annual report on form 10-k .
these adjustments reflect the reversal of certain of these liabilities as a result of settlements with clients or vendors or where the statute of limitations has lapsed .

litigation settlement 2013 during may 2008 , the sec concluded its investigation that began in 2002 into our financial reporting practices , resulting in a settlement charge of $ 12.0 .
investment impairments 2013 in 2007 we realized an other-than-temporary charge of $ 5.8 relating to a $ 12.5 investment in auction rate securities , representing our total investment in auction rate securities .
see note 12 for further information .

see note 12 for further information .
note 5 : intangible assets goodwill goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values .

the changes in the carrying value of goodwill for our segments , integrated agency networks ( 201cian 201d ) and constituency management group ( 201ccmg 201d ) , for the years ended december 31 , 2009 and 2008 are listed below. .

1 for all periods presented we have not recorded a goodwill impairment charge .
2 for acquisitions completed after january 1 , 2009 , amount includes contingent and deferred payments , which are recorded at fair value on the acquisition date .
see note 6 for further information .
see note 1 for further information regarding our annual impairment methodology .

other intangible assets included in other intangible assets are assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization .
other intangible assets primarily include customer lists and trade names .
intangible assets with definitive lives subject to amortization are amortized on a straight-line basis with estimated useful lives generally between 7 and 15 years .

amortization expense for other intangible assets for the years ended december 31 , 2009 , 2008 and 2007 was $ 19.3 , $ 14.4 and $ 8.5 , respectively .
the following table provides a summary of other intangible assets , which are included in other assets on our consolidated balance sheets.

 |
| table | | ian              | cmg            | total 1
------------------------------------------------------- | ---------------- | -------------- | ----------------
balance as of december 31 2007                          | $ 2789.7         | $ 441.9        | $ 3231.6
current year acquisitions                               | 99.5             | 1.8            | 101.3
contingent and deferred payments for prior acquisitions | 28.9             | 1.1            | 30.0
other ( primarily foreign currency translation )        | -128.1 ( 128.1 ) | -13.9 ( 13.9 ) | -142.0 ( 142.0 )
balance as of december 31 2008                          | $ 2790.0         | $ 430.9        | $ 3220.9
current year acquisitions2                              | 5.2              | 2014           | 5.2
contingent and deferred payments for prior acquisitions | 14.2             | 2014           | 14.2
other ( primarily foreign currency translation )        | 76.2             | 4.5            | 80.7
balance as of december 31 2009                          | $ 2885.6         | $ 435.4        | $ 3321.0 |


| _id | dd4b98f46 |
| title |  |
| text | entergy mississippi may refinance , redeem , or otherwise retire debt and preferred stock prior to maturity , to the extent market conditions and interest and dividend rates are favorable .

all debt and common and preferred stock issuances by entergy mississippi require prior regulatory approval . a0 a0preferred stock and debt issuances are also subject to issuance tests set forth in its corporate charter , bond indenture , and other agreements . a0 a0entergy mississippi has sufficient capacity under these tests to meet its foreseeable capital needs .
entergy mississippi 2019s receivables from the money pool were as follows as of december 31 for each of the following years. .

see note 4 to the financial statements for a description of the money pool .
entergy mississippi has four separate credit facilities in the aggregate amount of $ 102.5 million scheduled to expire may 2018 .
no borrowings were outstanding under the credit facilities as of december a031 , 2017 . a0 a0in addition , entergy mississippi is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to miso .

as of december a031 , 2017 , a $ 15.3 million letter of credit was outstanding under entergy mississippi 2019s uncommitted letter of credit facility .
see note 4 to the financial statements for additional discussion of the credit facilities .
entergy mississippi obtained authorizations from the ferc through october 2019 for short-term borrowings not to exceed an aggregate amount of $ 175 million at any time outstanding and long-term borrowings and security issuances .

see note 4 to the financial statements for further discussion of entergy mississippi 2019s short-term borrowing limits .
entergy mississippi , inc .
management 2019s financial discussion and analysis state and local rate regulation and fuel-cost recovery the rates that entergy mississippi charges for electricity significantly influence its financial position , results of operations , and liquidity .

entergy mississippi is regulated and the rates charged to its customers are determined in regulatory proceedings .
a governmental agency , the mpsc , is primarily responsible for approval of the rates charged to customers .
formula rate plan in march 2016 , entergy mississippi submitted its formula rate plan 2016 test year filing showing entergy mississippi 2019s projected earned return for the 2016 calendar year to be below the formula rate plan bandwidth .

the filing showed a $ 32.6 million rate increase was necessary to reset entergy mississippi 2019s earned return on common equity to the specified point of adjustment of 9.96% ( 9.96 % ) , within the formula rate plan bandwidth .
in june 2016 the mpsc approved entergy mississippi 2019s joint stipulation with the mississippi public utilities staff .
the joint stipulation provided for a total revenue increase of $ 23.7 million .

the revenue increase includes a $ 19.4 million increase through the formula rate plan , resulting in a return on common equity point of adjustment of 10.07% ( 10.07 % ) .
the revenue increase also includes $ 4.3 million in incremental ad valorem tax expenses to be collected through an updated ad valorem tax adjustment rider .
the revenue increase and ad valorem tax adjustment rider were effective with the july 2016 bills .

in march 2017 , entergy mississippi submitted its formula rate plan 2017 test year filing and 2016 look-back filing showing entergy mississippi 2019s earned return for the historical 2016 calendar year and projected earned return for the 2017 calendar year to be within the formula rate plan bandwidth , resulting in no change in rates .
in june 2017 , entergy mississippi and the mississippi public utilities staff entered into a stipulation that confirmed that entergy

 |
| table | 2017             | 2016             | 2015             | 2014
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 1633           | $ 10595          | $ 25930          | $ 644 |


| _id | dd4bc2044 |
| title |  |
| text | the following is a schedule of future minimum rental payments required under long-term operating leases at october 30 , 2010 : fiscal years operating leases .

12 .
commitments and contingencies from time to time in the ordinary course of the company 2019s business , various claims , charges and litigation are asserted or commenced against the company arising from , or related to , contractual matters , patents , trademarks , personal injury , environmental matters , product liability , insurance coverage and personnel and employment disputes .
as to such claims and litigation , the company can give no assurance that it will prevail .

the company does not believe that any current legal matters will have a material adverse effect on the company 2019s financial position , results of operations or cash flows .
13 .
retirement plans the company and its subsidiaries have various savings and retirement plans covering substantially all employees .
the company maintains a defined contribution plan for the benefit of its eligible u.s .
employees .

employees .
this plan provides for company contributions of up to 5% ( 5 % ) of each participant 2019s total eligible compensation .
in addition , the company contributes an amount equal to each participant 2019s pre-tax contribution , if any , up to a maximum of 3% ( 3 % ) of each participant 2019s total eligible compensation .
the total expense related to the defined contribution plan for u.s .
employees was $ 20.5 million in fiscal 2010 , $ 21.5 million in fiscal 2009 and $ 22.6 million in fiscal 2008 .

the company also has various defined benefit pension and other retirement plans for certain non-u.s .
employees that are consistent with local statutory requirements and practices .
the total expense related to the various defined benefit pension and other retirement plans for certain non-u.s .
employees was $ 11.7 million in fiscal 2010 , $ 10.9 million in fiscal 2009 and $ 13.9 million in fiscal 2008 .

during fiscal 2009 , the measurement date of the plan 2019s funded status was changed from september 30 to the company 2019s fiscal year end .
non-u.s .
plan disclosures the company 2019s funding policy for its foreign defined benefit pension plans is consistent with the local requirements of each country .
the plans 2019 assets consist primarily of u.s .
and non-u.s .
equity securities , bonds , property and cash .

equity securities , bonds , property and cash .
the benefit obligations and related assets under these plans have been measured at october 30 , 2010 and october 31 , 2009 .
analog devices , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | fiscal years | operating leases
------------ | ----------------
2011         | $ 21871
2012         | 12322
2013         | 9078
2014         | 6381
2015         | 5422
later years  | 30655
total        | $ 85729 |


| _id | dd4b9af30 |
| title |  |
| text | fair value of financial instruments the carrying amounts shown for the company 2019s cash and cash equivalents , accounts receivable and accounts payable approximate fair value because of the short term maturity of those instruments .
the fair value of the long term debt approximates its carrying value based on the variable nature of interest rates and current market rates available to the company .
the fair value of foreign currency forward contracts is based on the net difference between the u.s .

dollars to be received or paid at the contracts 2019 settlement date and the u.s .
dollar value of the foreign currency to be sold or purchased at the current forward exchange rate .
recently issued accounting standards in june 2011 , the financial accounting standards board ( 201cfasb 201d ) issued an accounting standards update which eliminates the option to report other comprehensive income and its components in the statement of changes in stockholders 2019 equity .

it requires an entity to present total comprehensive income , which includes the components of net income and the components of other comprehensive income , either in a single continuous statement or in two separate but consecutive statements .
in december 2011 , the fasb issued an amendment to this pronouncement which defers the specific requirement to present components of reclassifications of other comprehensive income on the face of the income statement .

these pronouncements are effective for financial statements issued for fiscal years , and interim periods within those years , beginning after december 15 , 2011 .
the company believes the adoption of these pronouncements will not have a material impact on its consolidated financial statements .

in may 2011 , the fasb issued an accounting standards update which clarifies requirements for how to measure fair value and for disclosing information about fair value measurements common to accounting principles generally accepted in the united states of america and international financial reporting standards .
this guidance is effective for interim and annual periods beginning on or after december 15 , 2011 .

the company believes the adoption of this guidance will not have a material impact on its consolidated financial statements .
3 .
inventories inventories consisted of the following: .

4 .
acquisitions in july 2011 , the company acquired approximately 400.0 thousand square feet of office space comprising its corporate headquarters for $ 60.5 million .
the acquisition included land , buildings , tenant improvements and third party lease-related intangible assets .
as of the purchase date , 163.6 thousand square feet of the 400.0 thousand square feet acquired was leased to third party tenants .

these leases had remaining lease terms ranging from 9 months to 15 years on the purchase date .
the company intends to occupy additional space as it becomes available .
since the acquisition , the company has invested $ 2.2 million in additional improvements .
the acquisition included the assumption of a $ 38.6 million loan secured by the property and the remaining purchase price was paid in cash funded primarily by a $ 25.0 million term loan borrowed in may 2011 .

the carrying value of the assumed loan approximated its fair value on the date of the acquisition .
refer to note 7 for

 |
| table | ( in thousands )  | december 31 , 2011 | december 31 , 2010
----------------- | ------------------ | ------------------
finished goods    | $ 323606           | $ 214524
raw materials     | 803                | 831
total inventories | $ 324409           | $ 215355 |


| _id | dd4bdac8e |
| title |  |
| text | entergy arkansas , inc .
management's financial discussion and analysis results of operations net income 2004 compared to 2003 net income increased $ 16.2 million due to lower other operation and maintenance expenses , a lower effective income tax rate for 2004 compared to 2003 , and lower interest charges .
the increase was partially offset by lower net revenue .

2003 compared to 2002 net income decreased $ 9.6 million due to lower net revenue , higher depreciation and amortization expenses , and a higher effective income tax rate for 2003 compared to 2002 .
the decrease was substantially offset by lower other operation and maintenance expenses , higher other income , and lower interest charges .

net revenue 2004 compared to 2003 net revenue , which is entergy arkansas' measure of gross margin , consists of operating revenues net of : 1 ) fuel , fuel-related , and purchased power expenses and 2 ) other regulatory credits .
following is an analysis of the change in net revenue comparing 2004 to 2003. .

deferred fuel cost revisions includes the difference between the estimated deferred fuel expense and the actual calculation of recoverable fuel expense , which occurs on an annual basis .
deferred fuel cost revisions decreased net revenue due to a revised estimate of fuel costs filed for recovery at entergy arkansas in the march 2004 energy cost recovery rider , which reduced net revenue by $ 11.5 million .

the remainder of the variance is due to the 2002 energy cost recovery true-up , made in the first quarter of 2003 , which increased net revenue in 2003 .

gross operating revenues , fuel and purchased power expenses , and other regulatory credits gross operating revenues increased primarily due to : 2022 an increase of $ 20.7 million in fuel cost recovery revenues due to an increase in the energy cost recovery rider effective april 2004 ( fuel cost recovery revenues are discussed in note 2 to the domestic utility companies and system energy financial statements ) ; 2022 an increase of $ 15.5 million in grand gulf revenues due to an increase in the grand gulf

revenues due to an increase in the grand gulf rider effective january 2004 ; 2022 an increase of $ 13.9 million in gross wholesale revenue primarily due to increased sales to affiliated systems ; 2022 an increase of $ 9.5 million due to volume/weather primarily resulting from increased usage during the unbilled sales period , partially offset by the effect of milder weather on billed sales in 2004.

 |
| table | | ( in millions )
---------------------------- | ---------------
2003 net revenue             | $ 998.7
deferred fuel cost revisions | -16.9 ( 16.9 )
other                        | -3.4 ( 3.4 )
2004 net revenue             | $ 978.4 |


| _id | dd4c56bb8 |
| title |  |
| text | 6 .
principal transactions citi 2019s principal transactions revenue consists of realized and unrealized gains and losses from trading activities .
trading activities include revenues from fixed income , equities , credit and commodities products and foreign exchange transactions that are managed on a portfolio basis characterized by primary risk .

not included in the table below is the impact of net interest revenue related to trading activities , which is an integral part of trading activities 2019 profitability .
for additional information regarding principal transactions revenue , see note a04 to the consolidated financial statements for information about net interest revenue related to trading activities .

principal transactions include cva ( credit valuation adjustments on derivatives ) and fva ( funding valuation adjustments ) on over-the-counter derivatives .
these adjustments are discussed further in note 24 to the consolidated financial statements .
the following table presents principal transactions revenue: .

( 1 ) includes revenues from government securities and corporate debt , municipal securities , mortgage securities and other debt instruments .
also includes spot and forward trading of currencies and exchange-traded and over-the-counter ( otc ) currency options , options on fixed income securities , interest rate swaps , currency swaps , swap options , caps and floors , financial futures , otc options and forward contracts on fixed income securities .

( 2 ) includes revenues from foreign exchange spot , forward , option and swap contracts , as well as foreign currency translation ( fx translation ) gains and losses .
( 3 ) includes revenues from common , preferred and convertible preferred stock , convertible corporate debt , equity-linked notes and exchange-traded and otc equity options and warrants .
( 4 ) primarily includes revenues from crude oil , refined oil products , natural gas and other commodities trades .

( 5 ) includes revenues from structured credit products.

 |
| table | in millions of dollars          | 2018   | 2017   | 2016
------------------------------- | ------ | ------ | ------
interest rate risks ( 1 )       | $ 5186 | $ 5301 | $ 4229
foreign exchange risks ( 2 )    | 1423   | 2435   | 1699
equity risks ( 3 )              | 1346   | 525    | 330
commodity and other risks ( 4 ) | 662    | 425    | 899
credit products and risks ( 5 ) | 445    | 789    | 700
total                           | $ 9062 | $ 9475 | $ 7857 |


| _id | dd4c4b81c |
| title |  |
| text | power purchase contracts dominion has entered into contracts for long-term purchases of capacity and energy from other utilities , qualifying facilities and independent power producers .
as of december 31 , 2002 , dominion had 42 non-utility purchase contracts with a com- bined dependable summer capacity of 3758 megawatts .
the table below reflects dominion 2019s minimum commitments as of december 31 , 2002 under these contracts. .

capacity and other purchases under these contracts totaled $ 691 million , $ 680 million and $ 740 million for 2002 , 2001 and 2000 , respectively .
in 2001 , dominion completed the purchase of three gener- ating facilities and the termination of seven long-term power purchase contracts with non-utility generators .
dominion recorded an after-tax charge of $ 136 million in connection with the purchase and termination of long-term power purchase contracts .

cash payments related to the purchase of three gener- ating facilities totaled $ 207 million .
the allocation of the pur- chase price was assigned to the assets and liabilities acquired based upon estimated fair values as of the date of acquisition .
substantially all of the value was attributed to the power pur- chase contracts which were terminated and resulted in a charge included in operation and maintenance expense .

fuel purchase commitments dominion enters into long-term purchase commitments for fuel used in electric generation and natural gas for purposes other than trading .
estimated payments under these commitments for the next five years are as follows : 2003 2014$ 599 million ; 2004 2014$ 311 million ; 2005 2014$ 253 million ; 2006 2014$ 205 mil- lion ; 2007 2014$ 89 million ; and years beyond 2007 2014$ 215 mil- lion .
these purchase commitments include those required for regulated operations .

dominion recovers the costs of those pur- chases through regulated rates .
the natural gas purchase com- mitments of dominion 2019s field services operations are also included , net of related sales commitments .
in addition , dominion has committed to purchase certain volumes of nat- ural gas at market index prices determined in the period the natural gas is delivered .
these transactions have been designated as normal purchases and sales under sfas no .
133 .

133 .
natural gas pipeline and storage capacity commitments dominion enters into long-term commitments for the purchase of natural gas pipeline and storage capacity for purposes other than trading .
estimated payments under these commitments for the next five years are as follows : 2003 2014$ 34 million ; 2004 2014$ 23 million ; 2005 2014$ 13 million .
there were no signifi- cant commitments beyond 2005 .

production handling and firm transportation commitments in connection with its gas and oil production operations , dominion has entered into certain transportation and produc- tion handling agreements with minimum commitments expected to be paid in the following years : 2003 2014$ 23 million ; 2004 2014$ 57 million ; 2005 2014$ 56 million ; 2006 2014$ 53 million ; 2007 2014$ 44 million ; and years after 2007 2014$ 68 million .

lease commitments dominion leases various facilities , vehicles , aircraft and equip- ment under both operating and capital leases .
future minimum lease payments under operating and capital leases that have initial or remaining lease terms in excess of one year as of december 31 , 2002 are as follows : 2003 2014$ 94 million ; 2004 2014 $ 94 million ; 2005 2014$ 82 million ; 2006 2014$ 67 million ; 2007 2014 $ 62 million ; and years beyond 2007 2014$ 79 million .

rental expense included in other operations and maintenance expense was $ 84 million , $ 75 million and $ 107 million for 2002 , 2001 , and 2000 , respectively .
as of december 31 , 2002 , dominion , through certain sub- sidiaries , has entered into agreements with special purpose enti- ties ( lessors ) in order to finance and lease several new power generation projects , as well as its corporate headquarters and air- craft .

the lessors have an aggregate financing commitment from equity and debt investors of $ 2.2 billion , of which $ 1.6 billion has been used for total project costs to date .
dominion , in its role as construction agent for the lessors , is responsible for com- pleting construction by a specified date .

in the event a project is terminated before completion , dominion has the option to either purchase the project for 100 percent of project costs or terminate the project and make a payment to the lessor of approximately but no more than 89.9 percent of project costs .
upon completion of each individual project , dominion has use of the project assets subject to an operating lease .
dominion 2019s lease payments to the lessors are sufficient to provide a return to the investors .

at the end of each individual project 2019s lease term , dominion may renew the lease at negotiated amounts based on project costs and current market conditions , subject to investors 2019 approval ; purchase the project at its original construction cost ; or sell the project , on behalf of the lessor , to an independent third party .

if the project is sold and the proceeds from the sale are insufficient to repay the investors , dominion may be required to make a payment to the lessor up to an amount rang- ing from 81 percent to 85 percent of the project cost depending 85d o m i n i o n 2019 0 2 a n n u a l r e p o r t

 |
| table | ( millions )               | commitment capacity | commitment other
-------------------------- | ------------------- | ----------------
2003                       | $ 643               | $ 44
2004                       | 635                 | 29
2005                       | 629                 | 22
2006                       | 614                 | 18
2007                       | 589                 | 11
later years                | 5259                | 113
total                      | 8369                | 237
present value of the total | $ 4836              | $ 140 |


| _id | dd4c4b6be |
| title |  |
| text | total debt total debt at july 1 , 2006 was $ 1762692000 , of which approximately 75% ( 75 % ) was at fixed rates averaging 6.0% ( 6.0 % ) with an average life of 19 years , and the remainder was at floating rates averaging 5.2% ( 5.2 % ) .
certain loan agreements contain typical debt covenants to protect noteholders , including provisions to maintain the company 2019s long-term debt to total capital ratio below a specified level .
sysco was in compliance with all debt covenants at july 1 , 2006 .

the fair value of sysco 2019s total long-term debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the company for debt of the same remaining maturities .
the fair value of total long-term debt approximated $ 1669999000 at july 1 , 2006 and $ 1442721000 at july 2 , 2005 , respectively .
as of july 1 , 2006 and july 2 , 2005 , letters of credit outstanding were $ 60000000 and $ 76817000 , respectively .
9 .

9 .
leases although sysco normally purchases assets , it has obligations under capital and operating leases for certain distribution facilities , vehicles and computers .
total rental expense under operating leases was $ 100690000 , $ 92710000 , and $ 86842000 in fiscal 2006 , 2005 and 2004 , respectively .
contingent rentals , subleases and assets and obligations under capital leases are not significant .

aggregate minimum lease payments by fiscal year under existing non-capitalized long-term leases are as follows: .

2007 ************************************************************************* $ 56499000 2008 ************************************************************************* 46899000 2009 ************************************************************************* 39904000 2010 ************************************************************************* 33329000 2011 ************************************************************************* 25666000 later

25666000 later years********************************************************************* 128981000 10 .

employee benefit plans sysco has defined benefit and defined contribution retirement plans for its employees .
also , the company contributes to various multi-employer plans under collective bargaining agreements and provides certain health care benefits to eligible retirees and their dependents .
sysco maintains a qualified retirement plan ( retirement plan ) that pays benefits to employees at retirement , using formulas based on a participant 2019s years of service and compensation .

the defined contribution 401 ( k ) plan provides that under certain circumstances the company may make matching contributions of up to 50% ( 50 % ) of the first 6% ( 6 % ) of a participant 2019s compensation .
sysco 2019s contributions to this plan were $ 21898000 in 2006 , $ 28109000 in 2005 , and $ 27390000 in 2004 .

in addition to receiving benefits upon retirement under the company 2019s defined benefit plan , participants in the management incentive plan ( see 2018 2018management incentive compensation 2019 2019 under 2018 2018stock based compensation plans 2019 2019 ) will receive benefits under a supplemental executive retirement plan ( serp ) .
this plan is a nonqualified , unfunded supplementary retirement plan .

in order to meet its obligations under the serp , sysco maintains life insurance policies on the lives of the participants with carrying values of $ 153659000 at july 1 , 2006 and $ 138931000 at july 2 , 2005 .
these policies are not included as plan assets or in the funded status amounts in the table below .
sysco is the sole owner and beneficiary of such policies .

projected benefit obligations and accumulated benefit obligations for the serp were $ 327450000 and $ 238599000 , respectively , as of july 1 , 2006 and $ 375491000 and $ 264010000 , respectively , as of july 2 , 2005 .
the company made cash contributions to its pension plans of $ 73764000 and $ 220361000 in fiscal years 2006 and 2005 , respectively , including $ 66000000 and $ 214000000 in voluntary contributions to the retirement plan in fiscal 2006 and 2005 , respectively .

in fiscal 2006 , the company 2019s voluntary contribution to the retirement plan represented the maximum tax-deductible amount .
in fiscal 2005 , the company made a voluntary contribution of $ 134000000 in the fourth quarter in addition to the $ 80000000 %%transmsg*** transmitting job : h39408 pcn : 049000000 *** %%pcmsg|47 |00011|yes|no|09/06/2006 17:22|0|1|page is valid , no graphics -- color : n|

 |
| table | | amount
----------- | ----------
2007        | $ 56499000
2008        | 46899000
2009        | 39904000
2010        | 33329000
2011        | 25666000
later years | 128981000 |


| _id | dd4bf89fa |
| title |  |
| text | the following table provides the minimum annual future rental commitment under operating leases that have initial or remaining non-cancelable lease terms over the next five years and thereafter: .

the company has a series of agreements with various public entities ( the 201cpartners 201d ) to establish certain joint ventures , commonly referred to as 201cpublic-private partnerships . 201d under the public-private partnerships , the company constructed utility plant , financed by the company , and the partners constructed utility plant ( connected to the company 2019s property ) , financed by the partners .

the company agreed to transfer and convey some of its real and personal property to the partners in exchange for an equal principal amount of industrial development bonds ( 201cidbs 201d ) , issued by the partners under a state industrial development bond and commercial development act .
the company leased back the total facilities , including portions funded by both the company and the partners , under leases for a period of 40 years .

the leases related to the portion of the facilities funded by the company have required payments from the company to the partners that approximate the payments required by the terms of the idbs from the partners to the company ( as the holder of the idbs ) .
as the ownership of the portion of the facilities constructed by the company will revert back to the company at the end of the lease , the company has recorded these as capital leases .

the lease obligation and the receivable for the principal amount of the idbs are presented by the company on a net basis .
the carrying value of the facilities funded by the company recognized as a capital lease asset was $ 147 million and $ 150 million as of december 31 , 2018 and 2017 , respectively , which is presented in property , plant and equipment on the consolidated balance sheets .
the future payments under the lease obligations are equal to and offset by the payments receivable under the idbs .

as of december 31 , 2018 , the minimum annual future rental commitment under the operating leases for the portion of the facilities funded by the partners that have initial or remaining non-cancelable lease terms in excess of one year included in the preceding minimum annual rental commitments are $ 4 million in 2019 through 2023 , and $ 59 million thereafter .

note 20 : segment information the company 2019s operating segments are comprised of the revenue-generating components of its businesses for which separate financial information is internally produced and regularly used by management to make operating decisions and assess performance .
the company operates its businesses primarily through one reportable segment , the regulated businesses segment .

the company also operates market-based businesses that provide a broad range of related and complementary water and wastewater services within non-reportable operating segments , collectively referred to as the market-based businesses .
the regulated businesses segment is the largest component of the company 2019s business and includes 20 subsidiaries that provide water and wastewater services to customers in 16 states .

the company 2019s primary market-based businesses include the homeowner services group , which provides warranty protection programs to residential and smaller commercial customers ; the military services group , which provides water and wastewater services to the u.s .
government on military installations ; and keystone , which provides water transfer services for shale natural gas exploration and production companies.

 |
| table | | amount
---------- | ------
2019       | $ 17
2020       | 15
2021       | 12
2022       | 11
2023       | 6
thereafter | 80 |


| _id | dd4bf22b2 |
| title |  |
| text | hollyfrontier corporation notes to consolidated financial statements continued .

transportation and storage costs incurred under these agreements totaled $ 140.5 million , $ 135.1 million and $ 137.7 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
these amounts do not include contractual commitments under our long-term transportation agreements with hep , as all transactions with hep are eliminated in these consolidated financial statements .

we have a crude oil supply contract that requires the supplier to deliver a specified volume of crude oil or pay a shortfall fee for the difference in the actual barrels delivered to us less the specified barrels per the supply contract .

for the contract year ended august 31 , 2017 , the actual number of barrels delivered to us was substantially less than the specified barrels , and we recorded a reduction to cost of goods sold and accumulated a shortfall fee receivable of $ 26.0 million during this period .
in september 2017 , the supplier notified us they are disputing the shortfall fee owed and in october 2017 notified us of their demand for arbitration .

we offset the receivable with payments of invoices for deliveries of crude oil received subsequent to august 31 , 2017 , which is permitted under the supply contract .
we believe the disputes and claims made by the supplier are without merit .
in march , 2006 , a subsidiary of ours sold the assets of montana refining company under an asset purchase agreement ( 201capa 201d ) .

calumet montana refining llc , the current owner of the assets , has submitted requests for reimbursement of approximately $ 20.0 million pursuant to contractual indemnity provisions under the apa for various costs incurred , as well as additional claims related to environmental matters .
we have rejected most of the claims for payment , and this matter is scheduled for arbitration beginning in july 2018 .

we have accrued the costs we believe are owed pursuant to the apa , and we estimate that any reasonably possible losses beyond the amounts accrued are not material .
note 20 : segment information effective fourth quarter of 2017 , we revised our reportable segments to align with certain changes in how our chief operating decision maker manages and allocates resources to our business .

accordingly , our tulsa refineries 2019 lubricants operations , previously reported in the refining segment , are now combined with the operations of our petro-canada lubricants business ( acquired february 1 , 2017 ) and reported in the lubricants and specialty products segment .
our prior period segment information has been retrospectively adjusted to reflect our current segment presentation .

our operations are organized into three reportable segments , refining , lubricants and specialty products and hep .
our operations that are not included in the refining , lubricants and specialty products and hep segments are included in corporate and other .
intersegment transactions are eliminated in our consolidated financial statements and are included in eliminations .
corporate and other and eliminations are aggregated and presented under corporate , other and eliminations column .

the refining segment represents the operations of the el dorado , tulsa , navajo , cheyenne and woods cross refineries and hfc asphalt ( aggregated as a reportable segment ) .
refining activities involve the purchase and refining of crude oil and wholesale and branded marketing of refined products , such as gasoline , diesel fuel and jet fuel .
these petroleum products are primarily marketed in the mid-continent , southwest and rocky mountain regions of the united states .

hfc asphalt operates various asphalt terminals in arizona , new mexico and oklahoma.

 |
| table | | ( in thousands )
---------- | ----------------
2018       | $ 148716
2019       | 132547
2020       | 119639
2021       | 107400
2022       | 102884
thereafter | 857454
total      | $ 1468640 |


| _id | dd4b9667e |
| title |  |
| text | royal caribbean cruises ltd .
15 from two to 17 nights throughout south america , the caribbean and europe .
additionally , we announced that majesty of the seas will be redeployed from royal caribbean international to pullmantur in 2016 .
pullmantur serves the contemporary segment of the spanish , portuguese and latin american cruise mar- kets .

pullmantur 2019s strategy is to attract cruise guests from these target markets by providing a variety of cruising options and onboard activities directed at couples and families traveling with children .
over the last few years , pullmantur has systematically increased its focus on latin america and has expanded its pres- ence in that market .

in order to facilitate pullmantur 2019s ability to focus on its core cruise business , on march 31 , 2014 , pullmantur sold the majority of its interest in its non-core busi- nesses .
these non-core businesses included pullmantur 2019s land-based tour operations , travel agency and 49% ( 49 % ) interest in its air business .

in connection with the sale agreement , we retained a 19% ( 19 % ) interest in each of the non-core businesses as well as 100% ( 100 % ) ownership of the aircraft which are being dry leased to pullmantur air .
see note 1 .
general and note 6 .
other assets to our consolidated financial statements under item 8 .
financial statements and supplementary data for further details .

cdf croisi e8res de france we currently operate two ships with an aggregate capacity of approximately 2800 berths under our cdf croisi e8res de france brand .
cdf croisi e8res de france offers seasonal itineraries to the mediterranean , europe and caribbean .
during the winter season , zenith is deployed to the pullmantur brand for sailings in south america .

cdf croisi e8res de france is designed to serve the contemporary segment of the french cruise market by providing a brand tailored for french cruise guests .
tui cruises tui cruises is a joint venture owned 50% ( 50 % ) by us and 50% ( 50 % ) by tui ag , a german tourism and shipping com- pany , and is designed to serve the contemporary and premium segments of the german cruise market by offering a product tailored for german guests .

all onboard activities , services , shore excursions and menu offerings are designed to suit the preferences of this target market .
tui cruises operates three ships , mein schiff 1 , mein schiff 2 and mein schiff 3 , with an aggregate capacity of approximately 6300 berths .

in addition , tui cruises currently has three newbuild ships on order at the finnish meyer turku yard with an aggregate capacity of approximately 7500 berths : mein schiff 4 , scheduled for delivery in the second quarter of 2015 , mein schiff 5 , scheduled for delivery in the third quarter of 2016 and mein schiff 6 , scheduled for delivery in the second quarter of 2017 .
in november 2014 , we formed a strategic partnership with ctrip.com international ltd .

( 201cctrip 201d ) , a chinese travel service provider , to operate a new cruise brand known as skysea cruises .
skysea cruises will offer a custom-tailored product for chinese cruise guests operating the ship purchased from celebrity cruises .
the new cruise line will begin service in the second quarter of 2015 .
we and ctrip each own 35% ( 35 % ) of the new company , skysea holding , with the balance being owned by skysea holding management and a private equity fund .

industry cruising is considered a well-established vacation sector in the north american market , a growing sec- tor over the long term in the european market and a developing but promising sector in several other emerging markets .
industry data indicates that market penetration rates are still low and that a significant portion of cruise guests carried are first-time cruisers .
we believe this presents an opportunity for long-term growth and a potential for increased profitability .

the following table details market penetration rates for north america and europe computed based on the number of annual cruise guests as a percentage of the total population : america ( 1 ) europe ( 2 ) .

( 1 ) source : our estimates are based on a combination of data obtained from publicly available sources including the interna- tional monetary fund and cruise lines international association ( 201cclia 201d ) .
rates are based on cruise guests carried for at least two consecutive nights .
includes the united states of america and canada .

( 2 ) source : our estimates are based on a combination of data obtained from publicly available sources including the interna- tional monetary fund and clia europe , formerly european cruise council .
we estimate that the global cruise fleet was served by approximately 457000 berths on approximately 283 ships at the end of 2014 .

there are approximately 33 ships with an estimated 98650 berths that are expected to be placed in service in the global cruise market between 2015 and 2019 , although it is also possible that ships could be ordered or taken out of service during these periods .
we estimate that the global cruise industry carried 22.0 million cruise guests in 2014 compared to 21.3 million cruise guests carried in 2013 and 20.9 million cruise guests carried in 2012 .
part i

 |
| table | year | north america ( 1 ) | europe ( 2 )
---- | ------------------- | --------------
2010 | 3.1% ( 3.1 % )      | 1.1% ( 1.1 % )
2011 | 3.4% ( 3.4 % )      | 1.1% ( 1.1 % )
2012 | 3.3% ( 3.3 % )      | 1.2% ( 1.2 % )
2013 | 3.4% ( 3.4 % )      | 1.2% ( 1.2 % )
2014 | 3.5% ( 3.5 % )      | 1.3% ( 1.3 % ) |


| _id | dd498f254 |
| title |  |
| text | rights each holder of a share of outstanding common stock also holds one share purchase right ( a "right" ) for each share of common stock .
each right entitles the holder to purchase from the company one half of one-hundredth of a share of series a junior participating preferred stock , $ 0.01 par value ( the "junior preferred shares" ) , of the company at a price of $ 135 per one half of one-hundredth of a junior preferred share ( the "purchase price" ) .

the rights are not exercisable until the earlier of acquisition by a person or group of 15% ( 15 % ) or more of the outstanding common stock ( an "acquiring person" ) or the announcement of an intention to make or commencement of a tender offer or exchange offer , the consummation of which would result in the beneficial ownership by a person or group of 15% ( 15 % ) or more of the outstanding common stock .

in the event that any person or group becomes an acquiring person , each holder of a right other than the acquiring person will thereafter have the right to receive upon exercise that number of shares of common stock having a market value of two times the purchase price and , in the event that the company is acquired in a business combination transaction or 50% ( 50 % ) or more of its assets are sold , each holder of a right will thereafter have the right to receive upon exercise that number of shares of

to receive upon exercise that number of shares of common stock of the acquiring company which at the time of the transaction will have a market value of two times the purchase price .

under certain specified circumstances , the board of directors of the company may cause the rights ( other than rights owned by such person or group ) to be exchanged , in whole or in part , for common stock or junior preferred shares , at an exchange rate of one share of common stock per right or one half of one-hundredth of a junior preferred share per right .

at any time prior to the acquisition by a person or group of beneficial ownership of 15% ( 15 % ) or more of the outstanding common stock , the board of directors of the company may redeem the rights in whole at a price of $ 0.01 per right .
common stock reserved for future issuance at december 31 , 2003 , the company has reserved shares of common stock for future issuance under all equity compensation plans as follows ( shares in thousands ) : p .

significant revenue arrangements the company has formed strategic collaborations with major pharmaceutical companies in the areas of drug discovery , development , and commercialization .
research and development agreements provide the company with financial support and other valuable resources for research programs and development of clinical drug candidates , product development and marketing and sales of products .

collaborative research and development agreements in the company's collaborative research , development and commercialization programs the company seeks to discover , develop and commercialize major pharmaceutical products in conjunction with and supported by the company's collaborators .
collaborative research and development arrangements provide research funding over an initial contract period with renewal and termination options that vary by agreement .

the agreements also include milestone payments based on the achievement or the occurrence of a designated event .
the agreements may also contain development reimbursement provisions , royalty rights or profit sharing rights and manufacturing options .
the terms of each agreement vary .
the company has entered into significant research and development collaborations with large pharmaceutical companies .
p .

p .
significant revenue arrangements novartis in may 2000 , the company and novartis pharma ag ( "novartis" ) entered into an agreement to collaborate on the discovery , development and commercialization of small molecule drugs directed at targets in the kinase protein family .
under the agreement , novartis agreed to pay the company an up-front payment of $ 15000000 made upon signing of the agreement , up to $ 200000000 in product research funding over six .

 |
| table | common stock under stock and option plans    | 21829
-------------------------------------------- | -----
common stock under the vertex purchase plan  | 249
common stock under the vertex 401 ( k ) plan | 125
total                                        | 22203 |


| _id | dd4ba523c |
| title |  |
| text | jpmorgan chase & co./2012 annual report 119 implementing further revisions to the capital accord in the u.s .
( such further revisions are commonly referred to as 201cbasel iii 201d ) .
basel iii revised basel ii by , among other things , narrowing the definition of capital , and increasing capital requirements for specific exposures .

basel iii also includes higher capital ratio requirements and provides that the tier 1 common capital requirement will be increased to 7% ( 7 % ) , comprised of a minimum ratio of 4.5% ( 4.5 % ) plus a 2.5% ( 2.5 % ) capital conservation buffer .

implementation of the 7% ( 7 % ) tier 1 common capital requirement is required by january 1 , in addition , global systemically important banks ( 201cgsibs 201d ) will be required to maintain tier 1 common requirements above the 7% ( 7 % ) minimum in amounts ranging from an additional 1% ( 1 % ) to an additional 2.5% ( 2.5 % ) .

in november 2012 , the financial stability board ( 201cfsb 201d ) indicated that it would require the firm , as well as three other banks , to hold the additional 2.5% ( 2.5 % ) of tier 1 common ; the requirement will be phased in beginning in 2016 .
the basel committee also stated it intended to require certain gsibs to hold an additional 1% ( 1 % ) of tier 1 common under certain circumstances , to act as a disincentive for the gsib from taking actions that would further increase its systemic importance .

currently , no gsib ( including the firm ) is required to hold this additional 1% ( 1 % ) of tier 1 common .
in addition , pursuant to the requirements of the dodd-frank act , u.s .
federal banking agencies have proposed certain permanent basel i floors under basel ii and basel iii capital calculations .

the following table presents a comparison of the firm 2019s tier 1 common under basel i rules to its estimated tier 1 common under basel iii rules , along with the firm 2019s estimated risk-weighted assets .
tier 1 common under basel iii includes additional adjustments and deductions not included in basel i tier 1 common , such as the inclusion of aoci related to afs securities and defined benefit pension and other postretirement employee benefit ( 201copeb 201d ) plans .

the firm estimates that its tier 1 common ratio under basel iii rules would be 8.7% ( 8.7 % ) as of december 31 , 2012 .
the tier 1 common ratio under both basel i and basel iii are non- gaap financial measures .
however , such measures are used by bank regulators , investors and analysts as a key measure to assess the firm 2019s capital position and to compare the firm 2019s capital to that of other financial services companies .
december 31 , 2012 ( in millions , except ratios ) .

estimated risk-weighted assets under basel iii rules ( a ) $ 1647903 estimated tier 1 common ratio under basel iii rules ( b ) 8.7% ( 8.7 % ) ( a ) key differences in the calculation of risk-weighted assets between basel i and basel iii include : ( 1 ) basel iii credit risk rwa is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters , whereas basel i rwa is based on fixed supervisory risk weightings which vary only by counterparty type and asset class ;

vary only by counterparty type and asset class ; ( 2 ) basel iii market risk rwa reflects the new capital requirements related to trading assets and securitizations , which include incremental capital requirements for stress var , correlation trading , and re-securitization positions ; and ( 3 ) basel iii includes rwa for operational risk , whereas basel i does not .

the actual impact on the firm 2019s capital ratios upon implementation could differ depending on final implementation guidance from the regulators , as well as regulatory approval of certain of the firm 2019s internal risk models .
( b ) the tier 1 common ratio is tier 1 common divided by rwa .
the firm 2019s estimate of its tier 1 common ratio under basel iii reflects its current understanding of the basel iii rules based on information currently published by the basel committee and u.s .

federal banking agencies and on the application of such rules to its businesses as currently conducted ; it excludes the impact of any changes the firm may make in the future to its businesses as a result of implementing the basel iii rules , possible enhancements to certain market risk models , and any further implementation guidance from the regulators .
the basel iii capital requirements are subject to prolonged transition periods .

the transition period for banks to meet the tier 1 common requirement under basel iii was originally scheduled to begin in 2013 , with full implementation on january 1 , 2019 .
in november 2012 , the u.s .
federal banking agencies announced a delay in the implementation dates for the basel iii capital requirements .
the additional capital requirements for gsibs will be phased in starting january 1 , 2016 , with full implementation on january 1 , 2019 .

management 2019s current objective is for the firm to reach , by the end of 2013 , an estimated basel iii tier i common ratio of 9.5% ( 9.5 % ) .
additional information regarding the firm 2019s capital ratios and the federal regulatory capital standards to which it is subject is presented in supervision and regulation on pages 1 20138 of the 2012 form 10-k , and note 28 on pages 306 2013 308 of this annual report .
broker-dealer regulatory capital jpmorgan chase 2019s principal u.s .

broker-dealer subsidiaries are j.p .
morgan securities llc ( 201cjpmorgan securities 201d ) and j.p .
morgan clearing corp .
( 201cjpmorgan clearing 201d ) .
jpmorgan clearing is a subsidiary of jpmorgan securities and provides clearing and settlement services .
jpmorgan securities and jpmorgan clearing are each subject to rule 15c3-1 under the securities exchange act of 1934 ( the 201cnet capital rule 201d ) .

jpmorgan securities and jpmorgan clearing are also each registered as futures commission merchants and subject to rule 1.17 of the commodity futures trading commission ( 201ccftc 201d ) .
jpmorgan securities and jpmorgan clearing have elected to compute their minimum net capital requirements in accordance with the 201calternative net capital requirements 201d of the net capital rule .

at december 31 , 2012 , jpmorgan securities 2019 net capital , as defined by the net capital rule , was $ 13.5 billion , exceeding the minimum requirement by

 |
| table | tier 1 common under basel i rules                                                         | $ 140342
----------------------------------------------------------------------------------------- | --------------
adjustments related to aoci for afs securities and defined benefit pension and opeb plans | 4077
all other adjustments                                                                     | -453 ( 453 )
estimated tier 1 common under basel iii rules                                             | $ 143966
estimated risk-weighted assets under basel iii rules ( a )                                | $ 1647903
estimated tier 1 common ratio under basel iii rules ( b )                                 | 8.7% ( 8.7 % ) |