| _id | dd4beb2fa |
| title |  |
| text | devon energy corporation and subsidiaries notes to consolidated financial statements 2013 ( continued ) debt maturities as of december 31 , 2015 , excluding premiums and discounts , are as follows ( millions ) : .

credit lines devon has a $ 3.0 billion senior credit facility .
the maturity date for $ 30 million of the senior credit facility is october 24 , 2017 .
the maturity date for $ 164 million of the senior credit facility is october 24 , 2018 .
the maturity date for the remaining $ 2.8 billion is october 24 , 2019 .
amounts borrowed under the senior credit facility may , at the election of devon , bear interest at various fixed rate options for periods of up to twelve months .

such rates are generally less than the prime rate .
however , devon may elect to borrow at the prime rate .
the senior credit facility currently provides for an annual facility fee of $ 3.8 million that is payable quarterly in arrears .
as of december 31 , 2015 , there were no borrowings under the senior credit facility .
the senior credit facility contains only one material financial covenant .

this covenant requires devon 2019s ratio of total funded debt to total capitalization , as defined in the credit agreement , to be no greater than 65% ( 65 % ) .
the credit agreement contains definitions of total funded debt and total capitalization that include adjustments to the respective amounts reported in the accompanying consolidated financial statements .
also , total capitalization is adjusted to add back noncash financial write-downs such as full cost ceiling impairments or goodwill impairments .

as of december 31 , 2015 , devon was in compliance with this covenant with a debt-to- capitalization ratio of 23.7% ( 23.7 % ) .
commercial paper devon 2019s senior credit facility supports its $ 3.0 billion of short-term credit under its commercial paper program .
commercial paper debt generally has a maturity of between 1 and 90 days , although it can have a maturity of up to 365 days , and bears interest at rates agreed to at the time of the borrowing .

the interest rate is generally based on a standard index such as the federal funds rate , libor or the money market rate as found in the commercial paper market .
as of december 31 , 2015 , devon 2019s outstanding commercial paper borrowings had a weighted-average borrowing rate of 0.63% ( 0.63 % ) .
issuance of senior notes in june 2015 , devon issued $ 750 million of 5.0% ( 5.0 % ) senior notes due 2045 that are unsecured and unsubordinated obligations .

devon used the net proceeds to repay the floating rate senior notes that matured on december 15 , 2015 , as well as outstanding commercial paper balances .
in december 2015 , in conjunction with the announcement of the powder river basin and stack acquisitions , devon issued $ 850 million of 5.85% ( 5.85 % ) senior notes due 2025 that are unsecured and unsubordinated obligations .
devon used the net proceeds to fund the cash portion of these acquisitions.

 |
| table | 2016       | $ 976
---------- | -------
2017       | 2014
2018       | 875
2019       | 1100
2020       | 414
thereafter | 9763
total      | $ 13128 |


| _id | dd4bce1c8 |
| title |  |
| text | 2015 compared to 2014 when compared to 2014 , costs of revenue in 2015 increased $ 41 million .
this increase included a constant currency increase in expenses of approximately $ 238 million , or 8.9% ( 8.9 % ) , partially offset by a positive impact of approximately $ 197 million from the effects of foreign currency fluctuations .

the constant currency growth was comprised of a $ 71 million increase in commercial solutions , which included the impact from the encore acquisition which closed in july 2014 , a $ 146 million increase in research & development solutions , which included the incremental impact from the businesses that quest contributed to q2 solutions , and a $ 21 million increase in integrated engagement services .

the decrease in costs of revenue as a percent of revenues for 2015 was primarily as a result of an improvement in constant currency profit margin in the commercial solutions , research & development solutions and integrated engagement services segments ( as more fully described in the segment discussion later in this section ) .

for 2015 , this constant currency profit margin expansion was partially offset by the effect from a higher proportion of consolidated revenues being contributed by our lower margin integrated engagement services segment when compared to 2014 as well as a negative impact from foreign currency fluctuations .
selling , general and administrative expenses , exclusive of depreciation and amortization .

2016 compared to 2015 the $ 196 million increase in selling , general and administrative expenses in 2016 included a constant currency increase of $ 215 million , or 26.4% ( 26.4 % ) , partially offset by a positive impact of approximately $ 19 million from the effects of foreign currency fluctuations .

the constant currency growth was comprised of a $ 151 million increase in commercial solutions , which includes $ 158 million from the merger with ims health , partially offset by a decline in the legacy service offerings , a $ 32 million increase in research & development solutions , which includes the incremental impact from the businesses that quest contributed to q2 solutions , a $ 3 million increase in integrated engagement services , and a $ 29 million increase in general corporate and unallocated

increase in general corporate and unallocated expenses , which includes $ 37 million from the merger with ims health .

the constant currency increase in general corporate and unallocated expenses in 2016 was primarily due to higher stock-based compensation expense .
2015 compared to 2014 the $ 34 million increase in selling , general and administrative expenses in 2015 included a constant currency increase of $ 74 million , or 9.5% ( 9.5 % ) , partially offset by a positive impact of approximately $ 42 million from the effects of foreign currency fluctuations .

the constant currency growth was comprised of a $ 14 million increase in commercial solutions , which included the impact from the encore acquisition which closed in july 2014 , a $ 40 million increase in research & development solutions , which included the incremental impact from the businesses that quest contributed to q2 solutions , a $ 4 million increase in integrated engagement services , and a $ 14 million increase in general corporate and unallocated expenses .

the constant currency increase in general corporate and unallocated expenses in 2015 was primarily due to higher stock-based compensation expense and costs associated with the q2 solutions transaction.

 |
| table | ( dollars in millions )                     | year ended december 31 , 2016 | year ended december 31 , 2015 | year ended december 31 , 2014
------------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
selling general and administrative expenses | $ 1011                        | $ 815                         | $ 781
% (  % ) of revenues                        | 18.8% ( 18.8 % )              | 18.8% ( 18.8 % )              | 18.8% ( 18.8 % ) |


| _id | dd4979602 |
| title |  |
| text | backlog backlog decreased in 2015 compared to 2014 primarily due to sales being recognized on several multi-year programs ( such as hmsc , nisc iii , ciog and nsf asc ) related to prior year awards and a limited number of large new business awards .
backlog decreased in 2014 compared to 2013 primarily due to lower customer funding levels and declining activities on direct warfighter support programs impacted by defense budget reductions .

trends we expect is&gs 2019 2016 net sales to decline in the high-single digit percentage range as compared to 2015 , primarily driven by key loss contracts in an increasingly competitive environment , along with volume contraction on the segment 2019s major contracts .
operating profit is expected to decline at a higher percentage range in 2016 , as compared to net sales percentage declines , driven by higher margin program losses and re-compete programs awarded at lower margins .

accordingly , 2016 margins are expected to be lower than 2015 results .
missiles and fire control our mfc business segment provides air and missile defense systems ; tactical missiles and air-to-ground precision strike weapon systems ; logistics ; fire control systems ; mission operations support , readiness , engineering support and integration services ; manned and unmanned ground vehicles ; and energy management solutions .

mfc 2019s major programs include pac-3 , thaad , multiple launch rocket system , hellfire , jassm , javelin , apache , sniper ae , low altitude navigation and targeting infrared for night ( lantirn ae ) and sof clss .
mfc 2019s operating results included the following ( in millions ) : .

2015 compared to 2014 mfc 2019s net sales in 2015 decreased $ 322 million , or 5% ( 5 % ) , compared to the same period in 2014 .

the decrease was attributable to lower net sales of approximately $ 345 million for air and missile defense programs due to fewer deliveries ( primarily pac-3 ) and lower volume ( primarily thaad ) ; and approximately $ 85 million for tactical missile programs due to fewer deliveries ( primarily guided multiple launch rocket system ( gmlrs ) ) and joint air-to-surface standoff missile , partially offset by increased deliveries for hellfire .

these decreases were partially offset by higher net sales of approximately $ 55 million for energy solutions programs due to increased volume .
mfc 2019s operating profit in 2015 decreased $ 62 million , or 5% ( 5 % ) , compared to 2014 .

the decrease was attributable to lower operating profit of approximately $ 100 million for fire control programs due primarily to lower risk retirements ( primarily lantirn and sniper ) ; and approximately $ 65 million for tactical missile programs due to lower risk retirements ( primarily hellfire and gmlrs ) and fewer deliveries .

these decreases were partially offset by higher operating profit of approximately $ 75 million for air and missile defense programs due to increased risk retirements ( primarily thaad ) .
adjustments not related to volume , including net profit booking rate adjustments and other matters , were approximately $ 60 million lower in 2015 compared to 2014 .
2014 compared to 2013 mfc 2019s net sales increased $ 297 million , or 4% ( 4 % ) , in 2014 as compared to 2013 .

the increase was primarily attributable to higher net sales of approximately $ 180 million for air and missile defense programs primarily due to increased volume for thaad ; about $ 115 million for fire control programs due to increased deliveries ( including apache ) ; and about $ 125 million for various other programs due to increased volume .

these increases were partially offset by lower net sales of approximately $ 115 million for tactical missile programs due to fewer deliveries ( primarily high mobility artillery rocket system and army tactical missile system ) .
mfc 2019s operating profit decreased $ 35 million , or 3% ( 3 % ) , in 2014 as compared to 2013 .

the decrease was primarily attributable to lower operating profit of about $ 20 million for tactical missile programs due to net warranty reserve adjustments for various programs ( including jassm and gmlrs ) and fewer deliveries ; and approximately $ 45 million for various other programs due to lower risk retirements .
the decreases were offset by higher operating profit of approximately $ 20 million for air and missile defense programs due to increased volume ( primarily thaad and pac-3 ) ; and about

 |
| table | | 2015             | 2014             | 2013
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 6770           | $ 7092           | $ 6795
operating profit    | 1282             | 1344             | 1379
operating margins   | 18.9% ( 18.9 % ) | 19.0% ( 19.0 % ) | 20.3% ( 20.3 % )
backlog at year-end | $ 15500          | $ 13300          | $ 14300 |


| _id | dd4bc9542 |
| title |  |
| text | earnings were remitted as dividends after payment of all deferred taxes .
as more than 90% ( 90 % ) of the undistributed earnings are in countries with a statutory tax rate of 24% ( 24 % ) or higher , we do not generate a disproportionate amount of taxable income in countries with very low tax rates .
a reconciliation of the beginning and ending amount of the unrecognized tax benefits is as follows: .

at 30 september 2013 and 2012 , we had $ 124.3 and $ 110.8 of unrecognized tax benefits , excluding interest and penalties , of which $ 63.1 and $ 56.9 , respectively , would impact the effective tax rate if recognized .
interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense and totaled $ 2.4 in 2013 , $ ( 26.1 ) in 2012 , and $ ( 2.4 ) in 2011 .
our accrued balance for interest and penalties was $ 8.1 and $ 7.2 in 2013 and 2012 , respectively .

we were challenged by the spanish tax authorities over income tax deductions taken by certain of our spanish subsidiaries during fiscal years 2005 20132011 .
in november 2011 , we reached a settlement with the spanish tax authorities for 20ac41.3 million ( $ 56 ) in resolution of all tax issues under examination .
this settlement increased our income tax expense for the fiscal year ended 30 september 2012 by $ 43.8 ( $ .20 per share ) and had a 3.3% ( 3.3 % ) impact on our effective tax rate .

as a result of this settlement , we recorded a reduction in unrecognized tax benefits of $ 6.4 for tax positions taken in prior years and $ 11.0 for settlements .
on 25 january 2012 , the spanish supreme court released its decision in favor of our spanish subsidiary related to certain tax transactions for years 1991 and 1992 , a period before we controlled this subsidiary .

as a result , in the second quarter of 2012 , we recorded a reduction in income tax expense of $ 58.3 ( $ .27 per share ) , resulting in a 4.4% ( 4.4 % ) reduction in our effective tax rate for the fiscal year ended 30 september 2012 .
as a result of this ruling , we recorded a reduction in unrecognized tax benefits of $ 38.3 for tax positions taken in prior years .

during the third quarter of 2012 , our unrecognized tax benefits increased $ 33.3 as a result of certain tax positions taken in conjunction with the disposition of our homecare business .
when resolved , these benefits will be recognized in 201cincome from discontinued operations , net of tax 201d on our consolidated income statements and will not impact our effective tax rate .
for additional information , see note 3 , discontinued operations .
in the third quarter of 2011 , a u.s .

in the third quarter of 2011 , a u.s .
internal revenue service audit over tax years 2007 and 2008 was completed , resulting in a decrease in unrecognized tax benefits of $ 36.0 and a favorable impact to earnings of $ 23.9 .
this included a tax benefit of $ 8.9 ( $ .04 per share ) recognized in income from discontinued operations for fiscal year 2011 , as it relates to the previously divested u.s .
healthcare business .

healthcare business .
we are also currently under examination in a number of tax jurisdictions , some of which may be resolved in the next twelve months .
as a result , it is reasonably possible that a change in the unrecognized tax benefits may occur during the next twelve months .
however , quantification of an estimated range cannot be made at this time.

 |
| table | unrecognized tax benefits                       | 2013         | 2012           | 2011
----------------------------------------------- | ------------ | -------------- | --------------
balance at beginning of year                    | $ 110.8      | $ 126.4        | $ 197.8
additions for tax positions of the current year | 12.7         | 44.5           | 16.3
additions for tax positions of prior years      | 9.0          | 2.3            | 5.7
reductions for tax positions of prior years     | -.5 ( .5 )   | -46.9 ( 46.9 ) | -72.4 ( 72.4 )
settlements                                     | -1.4 ( 1.4 ) | -11.0 ( 11.0 ) | -15.6 ( 15.6 )
statute of limitations expiration               | -8.0 ( 8.0 ) | -3.7 ( 3.7 )   | -4.8 ( 4.8 )
foreign currency translation                    | 1.7          | -.8 ( .8 )     | -.6 ( .6 )
balance at end of year                          | $ 124.3      | $ 110.8        | $ 126.4 |


| _id | dd4ba057a |
| title |  |
| text | to determine stock-based compensation expense , the grant- date fair value is applied to the options granted with a reduction for estimated forfeitures .
we recognize compensation expense for stock options on a straight-line basis over the pro rata vesting period .
at december 31 , 2011 and 2010 , options for 12337000 and 13397000 shares of common stock were exercisable at a weighted-average price of $ 106.08 and $ 118.21 , respectively .

the total intrinsic value of options exercised during 2012 , 2011 and 2010 was $ 37 million , $ 4 million and $ 5 million .
cash received from option exercises under all incentive plans for 2012 , 2011 and 2010 was approximately $ 118 million , $ 41 million and $ 15 million , respectively .
the actual tax benefit realized for tax deduction purposes from option exercises under all incentive plans for 2012 , 2011 and 2010 was approximately $ 41 million , $ 14 million and $ 5 million , respectively .

there were no options granted in excess of market value in 2012 , 2011 or 2010 .
shares of common stock available during the next year for the granting of options and other awards under the incentive plans were 29192854 at december 31 , 2012 .

total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 30537674 shares at december 31 , 2012 , which includes shares available for issuance under the incentive plans and the employee stock purchase plan ( espp ) as described below .
during 2012 , we issued approximately 1.7 million 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 .
awards granted to non-employee directors in 2012 , 2011 and 2010 include 25620 , 27090 and 29040 deferred stock units , respectively , awarded under the outside directors deferred stock unit plan .
a deferred stock unit is a phantom share of our common stock , which requires liability accounting treatment until such awards are paid to the participants as cash .

as there are no vesting or service requirements on these awards , total compensation expense is recognized in full on awarded deferred stock units on the date of grant .
incentive/performance unit share awards and restricted stock/unit awards the fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant .

the value of certain incentive/ performance unit share awards is subsequently remeasured based on the achievement of one or more financial and other performance goals generally over a three-year period .
the personnel and compensation committee of the board of directors approves the final award payout with respect to incentive/performance unit share awards .
restricted stock/unit awards have various vesting periods generally ranging from 36 months to 60 months .

beginning in 2012 , we incorporated several risk-related performance changes to certain incentive compensation programs .
in addition to achieving certain financial performance metrics relative to our peers , the final payout amount will be subject to a negative adjustment if pnc fails to meet certain risk-related performance metrics as specified in the award agreement .
however , the p&cc has the discretion to reduce any or all of this negative adjustment under certain circumstances .

these awards have a three-year performance period and are payable in either stock or a combination of stock and cash .
additionally , performance-based restricted share units were granted in 2012 to certain of our executives in lieu of stock options , with generally the same terms and conditions as the 2011 awards of the same .

the weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2012 , 2011 and 2010 was $ 60.68 , $ 63.25 and $ 54.59 per share , respectively .
we recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program .

table 130 : nonvested incentive/performance unit share awards and restricted stock/unit awards 2013 rollforward shares in thousands nonvested incentive/ performance unit shares weighted- average date fair nonvested restricted stock/ shares weighted- average date fair .

in the chart above , the unit shares and related weighted- average grant-date fair value of the incentive/performance awards exclude the effect of dividends on the underlying shares , as those dividends will be paid in cash .
at december 31 , 2012 , there was $ 86 million of unrecognized deferred compensation expense related to nonvested share- based compensation arrangements granted under the incentive plans .
this cost is expected to be recognized as expense over a period of no longer than five years .

the total fair value of incentive/performance unit share and restricted stock/unit awards vested during 2012 , 2011 and 2010 was approximately $ 55 million , $ 52 million and $ 39 million , respectively .
the pnc financial services group , inc .
2013 form 10-k 203

 |
| table | shares in thousands december 31 2011 | nonvested incentive/ performance unit shares 830 | weighted-averagegrantdate fairvalue $ 61.68 | nonvested restricted stock/ unit shares 2512 | weighted-averagegrantdate fairvalue $ 54.87
------------------------------------ | ------------------------------------------------ | ------------------------------------------- | -------------------------------------------- | -------------------------------------------
granted                              | 465                                              | 60.70                                       | 1534                                         | 60.67
vested                               | -100 ( 100 )                                     | 64.21                                       | -831 ( 831 )                                 | 45.47
forfeited                            | -76 ( 76 )                                       | 60.27                                       | -154 ( 154 )                                 | 60.51
december 31 2012                     | 1119                                             | $ 61.14                                     | 3061                                         | $ 60.04 |


| _id | dd4bf143e |
| title |  |
| text | fhlb advances and other borrowings fhlb advances 2014the company had $ 0.7 billion in floating-rate and $ 0.2 billion in fixed-rate fhlb advances at both december 31 , 2013 and 2012 .
the floating-rate advances adjust quarterly based on the libor .

during the year ended december 31 , 2012 , $ 650.0 million of fixed-rate fhlb advances were converted to floating-rate for a total cost of approximately $ 128 million which was capitalized and will be amortized over the remaining maturities using the effective interest method .
in addition , during the year ended december 31 , 2012 , the company paid down in advance of maturity $ 1.0 billion of its fhlb advances and recorded $ 69.1 million in losses on the early extinguishment .

this loss was recorded in the gains ( losses ) on early extinguishment of debt line item in the consolidated statement of income ( loss ) .
the company did not have any similar transactions for the years ended december 31 , 2013 and 2011 .
as a condition of its membership in the fhlb atlanta , the company is required to maintain a fhlb stock investment currently equal to the lesser of : a percentage of 0.12% ( 0.12 % ) of total bank assets ; or a dollar cap amount of $ 20 million .

additionally , the bank must maintain an activity based stock investment which is currently equal to 4.5% ( 4.5 % ) of the bank 2019s outstanding advances at the time of borrowing .
the company had an investment in fhlb stock of $ 61.4 million and $ 67.4 million at december 31 , 2013 and 2012 , respectively .

the company must also maintain qualified collateral as a percent of its advances , which varies based on the collateral type , and is further adjusted by the outcome of the most recent annual collateral audit and by fhlb 2019s internal ranking of the bank 2019s creditworthiness .
these advances are secured by a pool of mortgage loans and mortgage-backed securities .

at december 31 , 2013 and 2012 , the company pledged loans with a lendable value of $ 3.9 billion and $ 4.8 billion , respectively , of the one- to four-family and home equity loans as collateral in support of both its advances and unused borrowing lines .
other borrowings 2014prior to 2008 , etbh raised capital through the formation of trusts , which sold trust preferred securities in the capital markets .

the capital securities must be redeemed in whole at the due date , which is generally 30 years after issuance .
each trust issued floating rate cumulative preferred securities ( 201ctrust preferred securities 201d ) , at par with a liquidation amount of $ 1000 per capital security .

the trusts used the proceeds from the sale of issuances to purchase floating rate junior subordinated debentures ( 201csubordinated debentures 201d ) issued by etbh , which guarantees the trust obligations and contributed proceeds from the sale of its subordinated debentures to e*trade bank in the form of a capital contribution .
the most recent issuance of trust preferred securities occurred in 2007 .

the face values of outstanding trusts at december 31 , 2013 are shown below ( dollars in thousands ) : trusts face value maturity date annual interest rate .

 |
| table | trusts                               | face value | maturity date | annual interest rate
------------------------------------ | ---------- | ------------- | ------------------------------------------------
etbh capital trust ii                | $ 5000     | 2031          | 10.25% ( 10.25 % )
etbh capital trust i                 | 20000      | 2031          | 3.75% ( 3.75 % ) above 6-month libor
etbh capital trust v vi viii         | 51000      | 2032          | 3.25%-3.65% ( 3.25%-3.65 % ) above 3-month libor
etbh capital trust vii ix 2014xii    | 65000      | 2033          | 3.00%-3.30% ( 3.00%-3.30 % ) above 3-month libor
etbh capital trust xiii 2014xviii xx | 77000      | 2034          | 2.45%-2.90% ( 2.45%-2.90 % ) above 3-month libor
etbh capital trust xix xxi xxii      | 60000      | 2035          | 2.20%-2.40% ( 2.20%-2.40 % ) above 3-month libor
etbh capital trust xxiii 2014xxiv    | 45000      | 2036          | 2.10% ( 2.10 % ) above 3-month libor
etbh capital trust xxv 2014xxx       | 110000     | 2037          | 1.90%-2.00% ( 1.90%-2.00 % ) above 3-month libor
total                                | $ 433000   |               | |


| _id | dd4979094 |
| title |  |
| text | z i m m e r h o l d i n g s , i n c .
a n d s u b s i d i a r i e s 2 0 0 3 f o r m 1 0 - k notes to consolidated financial statements ( continued ) the unaudited pro forma results for 2003 include events or changes in circumstances indicate that the carrying $ 90.4 million of expense related to centerpulse hip and knee value of an asset may not be recoverable .

an impairment loss litigation , $ 54.4 million of cash income tax benefits as a result would be recognized when estimated future cash flows of centerpulse electing to carry back its 2002 u.s .
federal net relating to the asset are less than its carrying amount .

operating loss for 5 years versus 10 years , which resulted in depreciation of instruments is recognized as selling , general more losses being carried forward to future years and less and administrative expense , consistent with the classification tax credits going unutilized due to the shorter carry back of instrument cost in periods prior to january 1 , 2003 .

period and an $ 8.0 million gain on sale of orquest inc. , an prior to january 1 , 2003 , undeployed instruments were investment previously held by centerpulse .

the unaudited carried as a prepaid expense at cost , net of allowances for pro forma results are not necessarily indicative either of the obsolescence ( $ 54.8 million , net , at december 31 , 2002 ) , and results of operations that actually would have resulted had recognized in selling , general and administrative expense in the exchange offers been in effect at the beginning of the the year in which the instruments were placed into service .
respective years or of future results .

respective years or of future results .
the new method of accounting for instruments was adopted to recognize the cost of these important assets of the transfx company 2019s business within the consolidated balance sheet on june 25 , 2003 , the company acquired the transfx and meaningfully allocate the cost of these assets over the external fixation system product line from immedica , inc .
periods benefited , typically five years .

periods benefited , typically five years .
for approximately $ 14.8 million cash , which has been the effect of the change during the year ended allocated primarily to goodwill and technology based december 31 , 2003 was to increase earnings before intangible assets .
the company has sold the transfx cumulative effect of change in accounting principle by product line since early 2001 under a distribution agreement $ 26.8 million ( $ 17.8 million net of tax ) , or $ 0.08 per diluted with immedica .
share .

share .
the cumulative effect adjustment of $ 55.1 million ( net of income taxes of $ 34.0 million ) to retroactively apply the implex corp .
new capitalization method as if applied in years prior to 2003 on march 2 , 2004 , the company entered into an is included in earnings during the year ended december 31 , amended and restated merger agreement relating to the 2003 .
the pro forma amounts shown on the consolidated acquisition of implex corp .

( 2018 2018implex 2019 2019 ) , a privately held statement of earnings have been adjusted for the effect of orthopaedics company based in new jersey , for cash .
each the retroactive application on depreciation and related share of implex stock will be converted into the right to income taxes .
receive cash having an aggregate value of approximately $ 108.0 million at closing and additional cash earn-out 5 .

inventories payments that are contingent on the growth of implex inventories at december 31 , 2003 and 2002 , consist of product sales through 2006 .
the net value transferred at the following ( in millions ) : closing will be approximately $ 89 million , which includes .

made by zimmer to implex pursuant to their existing alliance raw materials and work in progress 90.8 50.9 arrangement , escrow and other items .
the acquisition will be inventory step-up 52.6 2013 accounted for under the purchase method of accounting .
inventories , net $ 527.7 $ 257.6 reserves for obsolete and slow-moving inventory at4 .
change in accounting principle december 31 , 2003 and 2002 were $ 47.4 million and instruments are hand held devices used by orthopaedic $ 45.5 million , respectively .

provisions charged to expense surgeons during total joint replacement and other surgical were $ 11.6 million , $ 6.0 million and $ 11.9 million for the procedures .
effective january 1 , 2003 , instruments are years ended december 31 , 2003 , 2002 and 2001 , respectively .
recognized as long-lived assets and are included in property , amounts written off against the reserve were $ 11.7 million , plant and equipment .

undeployed instruments are carried at $ 7.1 million and $ 8.5 million for the years ended cost , net of allowances for obsolescence .
instruments in the december 31 , 2003 , 2002 and 2001 , respectively .
field are carried at cost less accumulated depreciation .
following the acquisition of centerpulse , the company depreciation is computed using the straight-line method established a common approach for estimating excess based on average estimated useful lives , determined inventory and instruments .

this change in estimate resulted principally in reference to associated product life cycles , in a charge to earnings of $ 3.0 million after tax in the fourth primarily five years .
in accordance with sfas no .
144 , the quarter .
company reviews instruments for impairment whenever

 |
| table | | 2003    | 2002
---------------------------------- | ------- | -------
finished goods                     | $ 384.3 | $ 206.7
raw materials and work in progress | 90.8    | 50.9
inventory step-up                  | 52.6    | 2013
inventories net                    | $ 527.7 | $ 257.6 |


| _id | dd4b91c64 |
| title |  |
| text | part a0iii item a010 .
directors , executive officers and corporate governance for the information required by this item a010 with respect to our executive officers , see part a0i , item 1 .
of this report .

of this report .
for the other information required by this item a010 , see 201celection of directors , 201d 201cnominees for election to the board of directors , 201d 201ccorporate governance 201d and 201csection a016 ( a ) beneficial ownership reporting compliance , 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .

the proxy statement for our 2019 annual meeting will be filed within 120 a0days after the end of the fiscal year covered by this annual report on form 10-k .
item a011 .
executive compensation for the information required by this item a011 , see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d and 201cexecutive compensation 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .
item a012 .

item a012 .
security ownership of certain beneficial owners and management and related stockholder matters for the information required by this item a012 with respect to beneficial ownership of our common stock , see 201csecurity ownership of certain beneficial owners and management 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .

the following table sets forth certain information as of december a031 , 2018 regarding our equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants and rights ( 1 ) weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders

compensation plans approved by security holders 1471449 $ 136.62 3578241 ( 1 ) the number of securities in column ( a ) include 22290 shares of common stock underlying performance stock units if maximum performance levels are achieved ; the actual number of shares , if any , to be issued with respect to the performance stock units will be based on performance with respect to specified financial and relative stock price measures .

item a013 .
certain relationships and related transactions , and director independence for the information required by this item a013 , see 201ccertain transactions 201d and 201ccorporate governance 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .
item a014 .

item a014 .
principal accounting fees and services for the information required by this item a014 , see 201caudit and non-audit fees 201d and 201caudit committee pre-approval procedures 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference. .

part a0iii item a010 .
directors , executive officers and corporate governance for the information required by this item a010 with respect to our executive officers , see part a0i , item 1 .
of this report .

of this report .
for the other information required by this item a010 , see 201celection of directors , 201d 201cnominees for election to the board of directors , 201d 201ccorporate governance 201d and 201csection a016 ( a ) beneficial ownership reporting compliance , 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .

the proxy statement for our 2019 annual meeting will be filed within 120 a0days after the end of the fiscal year covered by this annual report on form 10-k .
item a011 .
executive compensation for the information required by this item a011 , see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d and 201cexecutive compensation 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .
item a012 .

item a012 .
security ownership of certain beneficial owners and management and related stockholder matters for the information required by this item a012 with respect to beneficial ownership of our common stock , see 201csecurity ownership of certain beneficial owners and management 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .

the following table sets forth certain information as of december a031 , 2018 regarding our equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants and rights ( 1 ) weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders

compensation plans approved by security holders 1471449 $ 136.62 3578241 ( 1 ) the number of securities in column ( a ) include 22290 shares of common stock underlying performance stock units if maximum performance levels are achieved ; the actual number of shares , if any , to be issued with respect to the performance stock units will be based on performance with respect to specified financial and relative stock price measures .

item a013 .
certain relationships and related transactions , and director independence for the information required by this item a013 , see 201ccertain transactions 201d and 201ccorporate governance 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference .
item a014 .

item a014 .
principal accounting fees and services for the information required by this item a014 , see 201caudit and non-audit fees 201d and 201caudit committee pre-approval procedures 201d in the proxy statement for our 2019 annual meeting , which information is incorporated herein by reference.

 |
| table | plan category                                          | number of securitiesto be issued uponexercise ofoutstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-averageexercise price ofoutstanding options warrants and rights | number of securitiesremaining available forfuture issuance underequity compensationplans ( excludingsecurities reflected in column ( a ) ) ( c )
------------------------------------------------------ | --------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 1471449                                                                                | $ 136.62                                                                 | 3578241 |


| _id | dd4bbb276 |
| title |  |
| text | stock performance graph the following line-graph presentation compares our cumulative shareholder returns with the standard & poor 2019s information technology index and the standard & poor 2019s 500 stock index for the past five years .
the line graph assumes the investment of $ 100 in our common stock , the standard & poor 2019s information technology index , and the standard & poor 2019s 500 stock index on may 31 , 2002 and assumes reinvestment of all dividends .

comparison of 5 year cumulative total return* among global payments inc. , the s&p 500 index and the s&p information technology index 5/02 5/03 5/04 5/05 5/06 5/07 global payments inc .
s&p 500 s&p information technology * $ 100 invested on 5/31/02 in stock or index-including reinvestment of dividends .
fiscal year ending may 31 .
global payments s&p 500 information technology .

issuer purchases of equity securities on april 5 , 2007 , our board of directors authorized repurchases of our common stock in an amount up to $ 100 million .
the board has authorized us to purchase shares from time to time as market conditions permit .
there is no expiration date with respect to this authorization .
no amounts have been repurchased during the fiscal year ended may 31 , 2007.

 |
| table | | global payments | s&p 500  | s&p information technology
----------- | --------------- | -------- | --------------------------
may 31 2002 | $ 100.00        | $ 100.00 | $ 100.00
may 31 2003 | 94.20           | 91.94    | 94.48
may 31 2004 | 129.77          | 108.79   | 115.24
may 31 2005 | 193.30          | 117.75   | 116.29
may 31 2006 | 260.35          | 127.92   | 117.14
may 31 2007 | 224.24          | 157.08   | 144.11 |


| _id | dd4b99a18 |
| title |  |
| text | hologic , inc .

notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) restructuring accrual as a result of the cytyc merger , the company assumed previous cytyc management approved restructuring plans designed to reduce future operating expenses by consolidating its mountain view , california operations into its existing operations in costa rica and massachusetts as well as restructuring plans relating to cytyc 2019s historical acquisitions completed in march 2007 .

in connection with these plans , the company assumed a total liability of approximately $ 4658 .
during the twelve months ended september 27 , 2008 , the company did not incur any additional restructuring costs related to retention costs for these employees .
as a result of the third wave acquisition , the company assumed previous third wave management approved restructuring plans designed to reduce future operating expenses .

in connection with these plans , the company assumed a total liability related to termination benefits of approximately $ 7509 .
the company did not incur any additional restructuring costs related to retention costs for these employees from the date of acquisition through september 27 , 2008 .
we anticipate that these costs will be paid in full during fiscal 2009 .

additionally , the company recorded a liability related to the cytyc merger in accordance with eitf 95-3 as detailed below , primarily related to the termination of certain employees as well as minimum inventory purchase commitments and other contractual obligations for which business activities have been discontinued .

during the twelve months ended september 27 , 2008 the company incurred approximately $ 6.4 million of expense related to the resignation of the chairman of the board of directors , which is not included in the table below ( see note 12 ) .
changes in the restructuring accrual for the twelve months ended september 27 , 2008 were as follows : twelve months ended september 27 , 2008 termination benefits .

as of the dates of acquisition of aeg elektrofotografie gmbh ( 201caeg 201d ) , r2 technology , inc .
( 201cr2 201d ) and suros surgical , inc .
( 201csuros 201d ) ( see note 3 ) , management of the company implemented and finalized plans to involuntarily terminate certain employees of the acquired companies .
these plans resulted in a liability for costs associated with an employee severance arrangement of approximately $ 3135 in accordance with eitf issue no .

95-3 , recognition of liabilities in connection with a purchase business combination .
as of september 29 , 2007 , all amounts other than $ 105 had been paid .
the company had made full payment on this remaining liability as of september 27 , 2008 .
advertising costs advertising costs are charged to operations as incurred .
the company does not have any direct-response advertising .

advertising costs , which include trade shows and conventions , were approximately $ 15281 , $ 6683 and $ 5003 for fiscal 2008 , 2007 and 2006 , respectively , and were included in selling and marketing expense in the consolidated statements of operations.

 |
| table | other                                    | twelve months ended september 27 2008 other | twelve months ended september 27 2008
---------------------------------------- | ------------------------------------------- | -------------------------------------
beginning balance                        | $ 2014                                      | $ 105
cytyc balance acquired october 22 2007   | 2014                                        | 4658
third wave balance acquired july 24 2008 | 261                                         | 7029
provided for under eitf no . 95-3        | 1820                                        | 1020
adjustments                              | -382 ( 382 )                                | -270 ( 270 )
payments                                 | -817 ( 817 )                                | -11233 ( 11233 )
ending balance                           | $ 882                                       | $ 1309 |


| _id | dd4b9d80c |
| title |  |
| text | available , we do not expect any transactions to have a significant impact on our reported income tax expense .
in connection with the completion of the reorganization , we will reevaluate the ability to realize our deferred tax assets related to u.s .
operations under the new aon uk corporate structure and we may recognize a non-cash , deferred tax expense upon the conclusion of this evaluation .

based on information currently available , we do not expect the additional deferred tax expense , if any , to be significant .
the reorganization will result in additional ongoing costs to us .
the completion of the reorganization will result in an increase in some of our ongoing expenses and require us to incur some new expenses .
some costs , including those related to employees in our u.k .

offices and holding board meetings in the u.k. , are expected to be higher than would be the case if our principal executive offices were not relocated to the u.k. .
we also expect to incur new expenses , including professional fees and sdrt in connection with settlement of equity-based awards under our stock or share incentive plans , to comply with u.k .
corporate and tax laws .
item 1b .
unresolved staff comments .
item 2 .
properties .
we have offices in various locations throughout the world .

substantially all of our offices are located in leased premises .
we maintain our corporate headquarters at 200 e .
randolph street in chicago , illinois , where we occupy approximately 355000 square feet of space under an operating lease agreement that expires in 2013 .
there are two five-year renewal options at current market rates .
we own one building at pallbergweg 2-4 , amsterdam , the netherlands ( 150000 square feet ) .

the following are additional significant leased properties , along with the occupied square footage and expiration. .

7201 hewitt associates drive , charlotte , north carolina .
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218000 2015 the locations in lincolnshire , illinois , the woodlands , texas , orlando , florida , and charlotte north carolina , each of which were acquired as part of the hewitt acquisition in 2010 , are primarily dedicated to our hr solutions segment .
the other locations listed above house personnel from each of our business segments .

in november 2011 , aon entered into an agreement to lease 190000 square feet in a new building to be constructed in london , united kingdom .
the agreement is contingent upon the completion of the building construction .
aon expects to move into the new building in 2015 when it exercises an early break option at the devonshire square location.

 |
| table | property:                                                  | occupied square footage | lease expiration dates
---------------------------------------------------------- | ----------------------- | ----------------------
4 overlook point and other locations lincolnshire illinois | 1224000                 | 2014 2013 2019
2601 research forest drive the woodlands texas             | 414000                  | 2020
dlf city and unitech cyber park gurgaan india              | 383000                  | 2012 2013 2014
2300 discovery drive orlando florida                       | 364000                  | 2020
devonshire square and other locations london uk            | 327000                  | 2018 2013 2023
199 water street new york new york                         | 319000                  | 2018
7201 hewitt associates drive charlotte north carolina      | 218000                  | 2015 |


| _id | dd4bacaf0 |
| title |  |
| text | our international crude oil production is relatively sweet and is generally sold in relation to the brent crude benchmark .
the differential between wti and brent average prices widened significantly in 2011 and remained in 2012 in comparison to almost no differential in 2010 .
natural gas 2013 a significant portion of our natural gas production in the lower 48 states of the u.s .
is sold at bid-week prices or first-of-month indices relative to our specific producing areas .

average henry hub settlement prices for natural gas were lower in 2012 than in recent years .
a decline in average settlement date henry hub natural gas prices began in september 2011 and continued into 2012 .
although prices stabilized in late 2012 , they have not increased appreciably .
our other major natural gas-producing regions are e.g .
and europe .
in the case of e.g .
our natural gas sales are subject to term contracts , making realizations less volatile .
because natural gas sales from e.g .

because natural gas sales from e.g .
are at fixed prices , our worldwide reported average natural gas realizations may not fully track market price movements .
natural gas prices in europe have been significantly higher than in the u.s .
oil sands mining the osm segment produces and sells various qualities of synthetic crude oil .
output mix can be impacted by operational problems or planned unit outages at the mines or upgrader .

sales prices for roughly two-thirds of the normal output mix will track movements in wti and one-third will track movements in the canadian heavy sour crude oil marker , primarily wcs .
in 2012 , the wcs discount from wti had increased , putting downward pressure on our average realizations .
the operating cost structure of the osm operations is predominantly fixed and therefore many of the costs incurred in times of full operation continue during production downtime .

per-unit costs are sensitive to production rates .
key variable costs are natural gas and diesel fuel , which track commodity markets such as the canadian alberta energy company ( "aeco" ) natural gas sales index and crude oil prices , respectively .
the table below shows average benchmark prices that impact both our revenues and variable costs. .

wcs ( dollars per bbl ) ( a ) $ 73.18 $ 77.97 $ 65.31 aeco natural gas sales index ( dollars per mmbtu ) ( b ) $ 2.39 $ 3.68 $ 3.89 ( a ) monthly pricing based upon average wti adjusted for differentials unique to western canada .
( b ) monthly average day ahead index .
integrated gas our ig operations include production and marketing of products manufactured from natural gas , such as lng and methanol , in e.g .
world lng trade in 2012 has been estimated to be 240 mmt .

long-term , lng continues to be in demand as markets seek the benefits of clean burning natural gas .
market prices for lng are not reported or posted .
in general , lng delivered to the u.s .
is tied to henry hub prices and will track with changes in u.s .
natural gas prices , while lng sold in europe and asia is indexed to crude oil prices and will track the movement of those prices .

we have a 60 percent ownership in an lng production facility in e.g. , which sells lng under a long-term contract at prices tied to henry hub natural gas prices .
gross sales from the plant were 3.8 mmt , 4.1 mmt and 3.7 mmt in 2012 , 2011 and 2010 .
we own a 45 percent interest in a methanol plant located in e.g .
through our investment in ampco .
gross sales of methanol from the plant totaled 1.1 mmt , 1.0 mmt and 0.9 mmt in 2012 , 2011 and 2010 .

methanol demand has a direct impact on ampco 2019s earnings .
because global demand for methanol is rather limited , changes in the supply-demand balance can have a significant impact on sales prices .
world demand for methanol in 2012 has been estimated to be 49 mmt .
our plant capacity of 1.1 mmt is about 2 percent of world demand.

 |
| table | benchmark                                                | 2012    | 2011    | 2010
-------------------------------------------------------- | ------- | ------- | -------
wti crude oil ( dollars per bbl )                        | $ 94.15 | $ 95.11 | $ 79.61
wcs ( dollars per bbl ) ( a )                            | $ 73.18 | $ 77.97 | $ 65.31
aeco natural gas sales index ( dollars per mmbtu ) ( b ) | $ 2.39  | $ 3.68  | $ 3.89 |


| _id | dd4bfd5b8 |
| title |  |
| text | entergy texas , inc .
management's financial discussion and analysis dividends or other distributions on its common stock .
currently , all of entergy texas' retained earnings are available for distribution .
sources of capital entergy texas' sources to meet its capital requirements include : internally generated funds ; cash on hand ; debt or preferred stock issuances ; and bank financing under new or existing facilities .

entergy texas may refinance or redeem debt 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 texas require prior regulatory approval .
preferred stock and debt issuances are also subject to issuance tests set forth in its corporate charter , bond indentures , and other agreements .
entergy texas has sufficient capacity under these tests to meet its foreseeable capital needs .

entergy gulf states , inc .
filed with the ferc an application , on behalf of entergy texas , for authority to issue up to $ 200 million of short-term debt , up to $ 300 million of tax-exempt bonds , and up to $ 1.3 billion of other long- term securities , including common and preferred or preference stock and long-term debt .
on november 8 , 2007 , the ferc issued orders granting the requested authority for a two-year period ending november 8 , 2009 .

entergy texas' receivables from or ( payables to ) 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 texas has a credit facility in the amount of $ 100 million scheduled to expire in august 2012 .
as of december 31 , 2008 , $ 100 million was outstanding on the credit facility .
in february 2009 , entergy texas repaid its credit facility with the proceeds from the bond issuance discussed below .

on june 2 , 2008 and december 8 , 2008 , under the terms of the debt assumption agreement between entergy texas and entergy gulf states louisiana that is discussed in note 5 to the financial statements , entergy texas paid at maturity $ 148.8 million and $ 160.3 million , respectively , of entergy gulf states louisiana first mortgage bonds , which results in a corresponding decrease in entergy texas' debt assumption liability .

in december 2008 , entergy texas borrowed $ 160 million from its parent company , entergy corporation , under a $ 300 million revolving credit facility pursuant to an inter-company credit agreement between entergy corporation and entergy texas .
this borrowing would have matured on december 3 , 2013 .

entergy texas used these borrowings , together with other available corporate funds , to pay at maturity the portion of the $ 350 million floating rate series of first mortgage bonds due december 2008 that had been assumed by entergy texas , and that bond series is no longer outstanding .
in january 2009 , entergy texas repaid its $ 160 million note payable to entergy corporation with the proceeds from the bond issuance discussed below .

in january 2009 , entergy texas issued $ 500 million of 7.125% ( 7.125 % ) series mortgage bonds due february 2019 .
entergy texas used a portion of the proceeds to repay its $ 160 million note payable to entergy corporation , to repay the $ 100 million outstanding on its credit facility , and to repay short-term borrowings under the entergy system money pool .

entergy texas intends to use the remaining proceeds to repay on or prior to maturity approximately $ 70 million of obligations that had been assumed by entergy texas under the debt assumption agreement with entergy gulf states louisiana and for other general corporate purposes.

 |
| table | 2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
( $ 50794 )      | $ 154176         | $ 97277          | $ 136545 |


| _id | dd4975250 |
| title |  |
| text | republic services , inc .
notes to consolidated financial statements 2014 ( continued ) employee stock purchase plan republic employees are eligible to participate in an employee stock purchase plan .
the plan allows participants to purchase our common stock for 95% ( 95 % ) of its quoted market price on the last day of each calendar quarter .
for the years ended december 31 , 2017 , 2016 and 2015 , issuances under this plan totaled 113941 shares , 130085 shares and 141055 shares , respectively .

as of december 31 , 2017 , shares reserved for issuance to employees under this plan totaled 0.4 million and republic held employee contributions of approximately $ 1.8 million for the purchase of common stock .
12 .
stock repurchases and dividends stock repurchases stock repurchase activity during the years ended december 31 , 2017 and 2016 follows ( in millions except per share amounts ) : .

as of december 31 , 2017 , there were 0.5 million repurchased shares pending settlement and $ 33.8 million was unpaid and included within other accrued liabilities .
in october 2017 , our board of directors added $ 2.0 billion to the existing share repurchase authorization that now extends through december 31 , 2020 .
before this , $ 98.4 million remained under a prior authorization .

share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws .
while the board of directors has approved the program , the timing of any purchases , the prices and the number of shares of common stock to be purchased will be determined by our management , at its discretion , and will depend upon market conditions and other factors .

the share repurchase program may be extended , suspended or discontinued at any time .
as of december 31 , 2017 , the remaining authorized purchase capacity under our october 2017 repurchase program was $ 1.8 billion .
in december 2015 , our board of directors changed the status of 71272964 treasury shares to authorized and unissued .
in doing so , the number of our issued shares was reduced by the stated amount .

our accounting policy is to deduct the par value from common stock and to reflect the excess of cost over par value as a deduction from additional paid-in capital .
the change in unissued shares resulted in a reduction of $ 2295.3 million in treasury stock , $ 0.6 million in common stock , and $ 2294.7 million in additional paid-in capital .
there was no effect on our total stockholders 2019 equity position as a result of the change .

dividends in october 2017 , our board of directors approved a quarterly dividend of $ 0.345 per share .
cash dividends declared were $ 446.3 million , $ 423.8 million and $ 404.3 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
as of december 31 , 2017 , we recorded a quarterly dividend payable of $ 114.4 million to shareholders of record at the close of business on january 2 , 2018 .
13 .

13 .
earnings per share basic earnings per share is computed by dividing net income attributable to republic services , inc .
by the weighted average number of common shares ( including vested but unissued rsus ) outstanding during the

 |
| table | | 2017    | 2016
------------------------------- | ------- | -------
number of shares repurchased    | 9.6     | 8.4
amount paid                     | $ 610.7 | $ 403.8
weighted average cost per share | $ 63.84 | $ 48.56 |


| _id | dd4bb25d6 |
| title |  |
| text | issuer purchases of equity securities ( registered pursuant to section 12 of the exchange act ) period number of shares purchased average price paid per share number of shares purchased as part of publicly announced plans or programs maximum approximate dollar value of shares that may yet be purchased under the plans or programs ( 1 ) ( millions ) .

( 1 ) the total number of shares purchased includes : ( i ) shares purchased under the board 2019s authorizations described above , and ( ii ) shares purchased in connection with the exercise of stock options ( which totaled 34068 shares in january 2007 , 20091 shares in february 2007 , 35772 shares in march 2007 , 71521 shares in april 2007 , 225419 shares in may 2007 , 74233 shares in june 2007 , 135951 shares in july 2007 , 82178 shares in august 2007 , 56964 shares in september 2007 , 13802 shares in

56964 shares in september 2007 , 13802 shares in october 2007 , 10375 shares in november 2007 , and 23112 shares in december 2007 ) .

 |
| table | period                                | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | maximum approximate dollar value of shares that may yet be purchased under the plans or programs ( millions )
------------------------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
january 1-31 2007                     | 1311268                                | $ 76.33                      | 1277200                                                                          | $ 651
february 1-28 2007                    | 6542591                                | $ 75.12                      | 6522500                                                                          | $ 6731
march 1-31 2007                       | 8187472                                | $ 75.59                      | 8151700                                                                          | $ 6115
total january 1 2014 march 31 2007    | 16041331                               | $ 75.46                      | 15951400                                                                         | $ 6115
april 1-30 2007                       | 3548221                                | $ 77.55                      | 3476700                                                                          | $ 5846
may 1-31 2007                         | 4428219                                | $ 85.84                      | 4202800                                                                          | $ 5485
june 1-30 2007                        | 3885033                                | $ 86.58                      | 3810800                                                                          | $ 5155
total april 1 2014 june 30 2007       | 11861473                               | $ 83.60                      | 11490300                                                                         | $ 5155
july 1-31 2007                        | 1646251                                | $ 89.01                      | 1510300                                                                          | $ 5021
august 1-31 2007                      | 2329478                                | $ 87.05                      | 2247300                                                                          | $ 4825
september 1-30 2007                   | 2086564                                | $ 90.24                      | 2029600                                                                          | $ 4642
total july 1 2014 september 30 2007   | 6062293                                | $ 88.68                      | 5787200                                                                          | $ 4642
october 1-31 2007                     | 2192302                                | $ 88.89                      | 2178500                                                                          | $ 4448
november 1-30 2007                    | 1702375                                | $ 82.35                      | 1692000                                                                          | $ 4309
december 1-31 2007                    | 1896612                                | $ 85.41                      | 1873500                                                                          | $ 4149
total october 1 2014 dec . 31 2007    | 5791289                                | $ 85.83                      | 5744000                                                                          | $ 4149
total january 1 2014 december 31 2007 | 39756386                               | $ 81.42                      | 38972900                                                                         | $ 4149 |


| _id | dd4c0e6ec |
| title |  |
| text | there were no options granted in excess of market value in 2011 , 2010 or 2009 .
shares of common stock available during the next year for the granting of options and other awards under the incentive plans were 33775543 at december 31 , 2011 .

total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 35304422 shares at december 31 , 2011 , which includes shares available for issuance under the incentive plans and the employee stock purchase plan ( espp ) as described below .
during 2011 , we issued 731336 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 .
awards granted to non-employee directors in 2011 , 2010 and 2009 include 27090 , 29040 , and 39552 deferred stock units , respectively , awarded under the outside directors deferred stock unit plan .
a deferred stock unit is a phantom share of our common stock , which requires liability accounting treatment until such awards are paid to the participants as cash .

as there are no vesting or service requirements on these awards , total compensation expense is recognized in full on awarded deferred stock units on the date of grant .
incentive/performance unit share awards and restricted stock/unit awards the fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant .

the value of certain incentive/ performance unit share awards is subsequently remeasured based on the achievement of one or more financial and other performance goals generally over a three-year period .
the personnel and compensation committee of the board of directors approves the final award payout with respect to incentive/performance unit share awards .
restricted stock/unit awards have various vesting periods generally ranging from 36 months to 60 months .

beginning in 2011 , we incorporated two changes to certain awards under our existing long-term incentive compensation programs .
first , for certain grants of incentive performance units , the future payout amount will be subject to a negative annual adjustment if pnc fails to meet certain risk-related performance metrics .
this adjustment is in addition to the existing financial performance metrics relative to our peers .

these grants have a three-year performance period and are payable in either stock or a combination of stock and cash .
second , performance-based restricted share units ( performance rsus ) were granted in 2011 to certain of our executives in lieu of stock options .
these performance rsus ( which are payable solely in stock ) have a service condition , an internal risk-related performance condition , and an external market condition .

satisfaction of the performance condition is based on four independent one-year performance periods .
the weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2011 , 2010 and 2009 was $ 63.25 , $ 54.59 and $ 41.16 per share , respectively .
we recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program .

nonvested incentive/performance unit share awards and restricted stock/unit awards 2013 rollforward shares in thousands nonvested incentive/ performance unit shares weighted- average date fair nonvested restricted stock/ shares weighted- average date fair .

in the chart above , the unit shares and related weighted- average grant-date fair value of the incentive/performance awards exclude the effect of dividends on the underlying shares , as those dividends will be paid in cash .
at december 31 , 2011 , there was $ 61 million of unrecognized deferred compensation expense related to nonvested share- based compensation arrangements granted under the incentive plans .
this cost is expected to be recognized as expense over a period of no longer than five years .

the total fair value of incentive/performance unit share and restricted stock/unit awards vested during 2011 , 2010 and 2009 was approximately $ 52 million , $ 39 million and $ 47 million , respectively .
liability awards we grant annually cash-payable restricted share units to certain executives .
the grants were made primarily as part of an annual bonus incentive deferral plan .

while there are time- based and service-related vesting criteria , there are no market or performance criteria associated with these awards .
compensation expense recognized related to these awards was recorded in prior periods as part of annual cash bonus criteria .
as of december 31 , 2011 , there were 753203 of these cash- payable restricted share units outstanding .
174 the pnc financial services group , inc .
2013 form 10-k

 |
| table | shares in thousands december 31 2010 | nonvested incentive/ performance unit shares 363 | weighted- average grant date fair value $ 56.40 | nonvested restricted stock/ unit shares 2250 | weighted- average grant date fair value $ 49.95
------------------------------------ | ------------------------------------------------ | ----------------------------------------------- | -------------------------------------------- | -----------------------------------------------
granted                              | 623                                              | 64.21                                           | 1059                                         | 62.68
vested                               | -156 ( 156 )                                     | 59.54                                           | -706 ( 706 )                                 | 51.27
forfeited                            |                                                  |                                                 | -91 ( 91 )                                   | 52.24
december 31 2011                     | 830                                              | $ 61.68                                         | 2512                                         | $ 54.87 |


| _id | dd4b8dd76 |
| title |  |
| text | fidelity national information services , inc .
and subsidiaries notes to consolidated financial statements - ( continued ) ( a ) intrinsic value is based on a closing stock price as of december 31 , 2016 of $ 75.64 .
the weighted average fair value of options granted during the years ended december 31 , 2016 , 2015 and 2014 was estimated to be $ 9.35 , $ 10.67 and $ 9.15 , respectively , using the black-scholes option pricing model with the assumptions below: .

the company estimates future forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates .
the company bases the risk-free interest rate that is used in the stock option valuation model on u.s .
n treasury securities issued with maturities similar to the expected term of the options .

the expected stock volatility factor is determined using historical daily price changes of the company's common stock over the most recent period commensurate with the expected term of the option and the impact of any expected trends .
the dividend yield assumption is based on the current dividend yield at the grant tt date or management's forecasted expectations .

the expected life assumption is determined by calculating the average term from the tt company's historical stock option activity and considering the impact of expected future trends .
the company granted a total of 1 million restricted stock shares at prices ranging from $ 56.44 to $ 79.41 on various dates in 2016 .
the company granted a total of 1 million restricted stock shares at prices ranging from $ 61.33 to $ 69.33 on various dates in 20t 15 .

the company granted a total of 1 million restricted stock shares at prices ranging from $ 52.85 to $ 64.04 on various dates in 2014 .
these shares were granted at the closing market price on the date of grant and vest annually over three years .
as of december 31 , 2016 and 2015 , we have approximately 3 million and 4 million unvested restricted shares remaining .
the december 31 , 2016 balance includes those rsu's converted in connection with the sungard acquisition as noted above .

the company has provided for total stock compensation expense of $ 137 million , $ 98 million and $ 56 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively , which is included in selling , general , and administrative expense in the consolidated statements of earnings , unless the expense is attributable to a discontinued operation .

of the total stock compensation expense , $ 2 million for 2014 relates to liability based awards that will not be credited to additional paid in capital until issued .
total d compensation expense for 2016 and 2015 did not include amounts relating to liability based awards .

as of december 31 , 2016 and 2015 , the total unrecognized compensation cost related to non-vested stock awards is $ 141 million and $ 206 million , respectively , which is expected to be recognized in pre-tax income over a weighted average period of 1.4 years and 1.6 years , respectively .
german pension plans our german operations have unfunded , defined benefit plan obligations .
these obligations relate to benefits to be paid to germanaa employees upon retirement .

the accumulated benefit obligation as of december 31 , 2016 and 2015 , was $ 49 million and $ 48 million , respectively , and the projected benefit obligation was $ 50 million and $ 49 million , respectively .
the plan remains unfunded as of december 31 , 2016 .
( 15 ) divestitures and discontinued operations on december 7 , 2016 , the company entered into a definitive agreement to sell the sungard public sector and education ( "ps&e" ) businesses for $ 850 million .

the transaction included all ps&e solutions , which provide a comprehensive set of technology solutions to address public safety and public administration needs of government entities as well asn the needs of k-12 school districts .
the divestiture is consistent with our strategy to serve the financial services markets .
we received cash proceeds , net of taxes and transaction-related expenses of approximately $ 500 million .

net cash proceeds are expected to be used to reduce outstanding debt ( see note 10 ) .
the ps&e businesses are included in the corporate and other segment .
the transaction closed on february 1 , 2017 , resulting in an expected pre-tax gain ranging from $ 85 million to $ 90 million that will

 |
| table | | 2016             | 2015             | 2014
---------------------------------------- | ---------------- | ---------------- | ----------------
risk free interest rate                  | 1.2% ( 1.2 % )   | 1.4% ( 1.4 % )   | 1.4% ( 1.4 % )
volatility                               | 20.4% ( 20.4 % ) | 21.7% ( 21.7 % ) | 21.2% ( 21.2 % )
dividend yield                           | 1.6% ( 1.6 % )   | 1.6% ( 1.6 % )   | 1.6% ( 1.6 % )
weighted average expected life ( years ) | 4.2              | 4.2              | 4.2 |


| _id | dd4beac7e |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements the allocation of the purchase price was finalized during the year ended december 31 , 2012 .
the following table summarizes the 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 ) : purchase price allocation .

( 1 ) consists of customer-related intangibles of approximately $ 0.4 million and network location intangibles of approximately $ 0.7 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 .

colombia 2014colombia movil acquisition 2014on july 17 , 2011 , the company entered into a definitive agreement with colombia movil s.a .
e.s.p .
( 201ccolombia movil 201d ) , whereby atc sitios infraco , s.a.s. , a colombian subsidiary of the company ( 201catc infraco 201d ) , would purchase up to 2126 communications sites from colombia movil for an aggregate purchase price of approximately $ 182.0 million .

from december 21 , 2011 through the year ended december 31 , 2012 , atc infraco completed the purchase of 1526 communications sites for an aggregate purchase price of $ 136.2 million ( including contingent consideration of $ 17.3 million ) , subject to post-closing adjustments .
through a subsidiary , millicom international cellular s.a .
( 201cmillicom 201d ) exercised its option to acquire an indirect , substantial non-controlling interest in atc infraco .

under the terms of the agreement , the company is required to make additional payments upon the conversion of certain barter agreements with other wireless carriers to cash paying lease agreements .

based on the company 2019s current estimates , the value of potential contingent consideration payments required to be made under the amended agreement is expected to be between zero and $ 32.8 million and is estimated to be $ 17.3 million using a probability weighted average of the expected outcomes at december 31 , 2012 .

during the year ended december 31 , 2012 , the company recorded a reduction in fair value of $ 1.2 million , which is included in other operating expenses in the consolidated statements of operations.

 |
| table | | final purchase price allocation
--------------------------------- | -------------------------------
non-current assets                | $ 2
property and equipment            | 3590
intangible assets ( 1 )           | 1062
other non-current liabilities     | -91 ( 91 )
fair value of net assets acquired | $ 4563
goodwill ( 2 )                    | 89 |


| _id | dd4bb7450 |
| title |  |
| text | taxes .
if group or its bermuda subsidiaries were to become subject to u.s .
income tax ; there could be a material adverse effect on the company 2019s financial condition , results of operations and cash flows .
united kingdom .
bermuda re 2019s uk branch conducts business in the uk and is subject to taxation in the uk .
bermuda re believes that it has operated and will continue to operate its bermuda operation in a manner which will not cause them to be subject to uk taxation .

if bermuda re 2019s bermuda operations were to become subject to uk income tax there could be a material adverse impact on the company 2019s financial condition , results of operations and cash flow .

available information the company 2019s annual reports on form 10-k , quarterly reports on form 10-q , current reports on form 8-k , proxy state- ments and amendments to those reports are available free of charge through the company 2019s internet website at http://www.everestre.com as soon as reasonably practicable after such reports are electronically filed with the securities and exchange commission ( the 201csec 201d ) .
i t e m 1 a .

i t e m 1 a .
r i s k f a c t o r s in addition to the other information provided in this report , the following risk factors should be considered when evaluating an investment in our securities .
if the circumstances contemplated by the individual risk factors materialize , our business , finan- cial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly .

r i s k s r e l a t i n g t o o u r b u s i n e s s our results could be adversely affected by catastrophic events .
we are exposed to unpredictable catastrophic events , including weather-related and other natural catastrophes , as well as acts of terrorism .
any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations .

we define a catastrophe as an event that causes a pre-tax loss on property exposures before reinsurance of at least $ 5.0 million , before corporate level rein- surance and taxes .
effective for the third quarter 2005 , industrial risk losses have been excluded from catastrophe losses , with prior periods adjusted for comparison purposes .

by way of illustration , during the past five calendar years , pre-tax catastrophe losses , net of contract specific reinsurance but before cessions under corporate reinsurance programs , were as follows: .

our losses from future catastrophic events could exceed our projections .
we use projections of possible losses from future catastrophic events of varying types and magnitudes as a strategic under- writing tool .
we use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the purchase of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area .

these loss projections are approximations reliant on a mix of quantitative and qualitative processes and actual losses may exceed the projections by a material amount .
we focus on potential losses that can be generated by any single event as part of our evaluation and monitoring of our aggre- gate exposure to catastrophic events .
accordingly , we employ various techniques to estimate the amount of loss we could sustain from any single catastrophic event in various geographical areas .

these techniques range from non-modeled deterministic approaches 2014such as tracking aggregate limits exposed in catastrophe-prone zones and applying historic dam- age factors 2014to modeled approaches that scientifically measure catastrophe risks using sophisticated monte carlo simulation techniques that provide insights into the frequency and severity of expected losses on a probabilistic basis .

if our loss reserves are inadequate to meet our actual losses , net income would be reduced or we could incur a loss .
we are required to maintain reserves to cover our estimated ultimate liability of losses and loss adjustment expenses for both reported and unreported claims incurred .
these reserves are only estimates of what we believe the settlement and adminis- tration of claims will cost based on facts and circumstances known to us .

in setting reserves for our reinsurance liabilities , we rely on claim data supplied by our ceding companies and brokers and we employ actuarial and statistical projections .
the information received from our ceding companies is not always timely or accurate , which can contribute to inaccuracies in our 81790fin_a 4/13/07 11:08 am page 23 http://www.everestre.com

 |
| table | calendar year | calendar year |
------------- | ------------- | -------
2006          | $ 287.9       | million
2005          | $ 1485.7      | million
2004          | $ 390.0       | million
2003          | $ 35.0        | million
2002          | $ 30.0        | million |


| _id | dd4bb987c |
| title |  |
| text | notes to consolidated financial statements ( continued ) note 3 2014financial instruments ( continued ) accounts receivable trade receivables the company distributes its products through third-party distributors and resellers and directly to certain education , consumer , and commercial customers .
the company generally does not require collateral from its customers ; however , the company will require collateral in certain instances to limit credit risk .

in addition , when possible , the company does attempt to limit credit risk on trade receivables with credit insurance for certain customers in latin america , europe , asia , and australia and by arranging with third- party financing companies to provide flooring arrangements and other loan and lease programs to the company 2019s direct customers .
these credit-financing arrangements are directly between the third-party financing company and the end customer .

as such , the company generally does not assume any recourse or credit risk sharing related to any of these arrangements .
however , considerable trade receivables that are not covered by collateral , third-party flooring arrangements , or credit insurance are outstanding with the company 2019s distribution and retail channel partners .
no customer accounted for more than 10% ( 10 % ) of trade receivables as of september 30 , 2006 or september 24 , 2005 .

the following table summarizes the activity in the allowance for doubtful accounts ( in millions ) : september 30 , september 24 , september 25 .

( a ) represents amounts written off against the allowance , net of recoveries .
vendor non-trade receivables the company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of raw material components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the company .
the company purchases these raw material components directly from suppliers .

these non-trade receivables , which are included in the consolidated balance sheets in other current assets , totaled $ 1.6 billion and $ 417 million as of september 30 , 2006 and september 24 , 2005 , respectively .
the company does not reflect the sale of these components in net sales and does not recognize any profits on these sales until the products are sold through to the end customer at which time the profit is recognized as a reduction of cost of sales .

derivative financial instruments the company uses derivatives to partially offset its business exposure to foreign exchange risk .
foreign currency forward and option contracts are used to offset the foreign exchange risk on certain existing assets and liabilities and to hedge the foreign exchange risk on expected future cash flows on certain forecasted revenue and cost of sales .

from time to time , the company enters into interest rate derivative agreements to modify the interest rate profile of certain investments and debt .
the company 2019s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments .
the company records all derivatives on the balance sheet at fair value.

 |
| table | | september 30 2006 | september 24 2005 | september 25 2004
----------------------------- | ----------------- | ----------------- | -----------------
beginning allowance balance   | $ 46              | $ 47              | $ 49
charged to costs and expenses | 17                | 8                 | 3
deductions ( a )              | -11 ( 11 )        | -9 ( 9 )          | -5 ( 5 )
ending allowance balance      | $ 52              | $ 46              | $ 47 |


| _id | dd4bd9f64 |
| title |  |
| text | organizational structure a key enabler of the republic way operating model is our organizational structure that fosters a high performance culture by maintaining 360-degree accountability and full profit and loss responsibility with local management , supported by a functional structure to provide subject matter expertise .
this structure allows us to take advantage of our scale by coordinating functionally across all of our markets , while empowering local management to respond to unique market dynamics .

our senior management evaluates , oversees and manages the financial performance of our operations through two field groups , referred to as group 1 and group 2 .
group 1 primarily consists of geographic areas located in the western united states , and group 2 primarily consists of geographic areas located in the southeastern and mid-western united states , and the eastern seaboard of the united states .

each field group is organized into several areas and each area contains multiple business units or operating locations .
each of our field groups and all of our areas provide collection , transfer , recycling and landfill services .
see note 14 , segment reporting , to our consolidated financial statements in item 8 of this form 10-k for further discussion of our operating segments .

through this operating model , we have rolled out several productivity and cost control initiatives designed to deliver the best service possible to our customers in an efficient and environmentally sound way .
fleet automation approximately 75% ( 75 % ) of our residential routes have been converted to automated single-driver trucks .

by converting our residential routes to automated service , we reduce labor costs , improve driver productivity , decrease emissions and create a safer work environment for our employees .
additionally , communities using automated vehicles have higher participation rates in recycling programs , thereby complementing our initiative to expand our recycling capabilities .
fleet conversion to compressed natural gas ( cng ) approximately 20% ( 20 % ) of our fleet operates on natural gas .

we expect to continue our gradual fleet conversion to cng as part of our ordinary annual fleet replacement process .
we believe a gradual fleet conversion is the most prudent approach to realizing the full value of our previous fleet investments .
approximately 13% ( 13 % ) of our replacement vehicle purchases during 2018 were cng vehicles .
we believe using cng vehicles provides us a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment .

although upfront capital costs are higher , using cng reduces our overall fleet operating costs through lower fuel expenses .
as of december 31 , 2018 , we operated 37 cng fueling stations .
standardized maintenance based on an industry trade publication , we operate the seventh largest vocational fleet in the united states .
as of december 31 , 2018 , our average fleet age in years , by line of business , was as follows : approximate number of vehicles approximate average age .

onefleet , our standardized vehicle maintenance program , enables us to use best practices for fleet management , truck care and maintenance .
through standardization of core functions , we believe we can minimize variability

 |
| table | | approximate number of vehicles | approximate average age
--------------- | ------------------------------ | -----------------------
residential     | 7000                           | 7.5
small-container | 4700                           | 7.0
large-container | 4300                           | 8.8
total           | 16000                          | 7.7 |


| _id | dd4bbb848 |
| title |  |
| text | "distribution date" ) .
until the distribution date ( or earlier redemption or expiration of the rights ) , the rights will be traded with , and only with , the common stock .
until a right is exercised , the right will not entitle the holder thereof to any rights as a stockholder .

if any person or group becomes an acquiring person , each holder of a right , other than rights beneficially owned by the acquiring person , will thereafter have the right to receive upon exercise and payment of the purchase price that number of shares of common stock having a market value of two times the purchase price and , if 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

a right will thereafter have the right to receive upon exercise and payment of the purchase price 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 .

at any time after any person becomes an acquiring person and prior to the acquisition by such person or group of 50% ( 50 % ) or more of the outstanding common stock , 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 at a price of $ 0.01 per right .
the rights have certain anti-takeover effects , in that they will cause substantial dilution to a person or group that attempts to acquire a significant interest in vertex on terms not approved by the board of directors .

common stock reserved for future issuance at december 31 , 2005 , the company has reserved shares of common stock for future issuance under all equity compensation plans as follows ( shares in thousands ) : o .
significant revenue arrangements the company has formed strategic collaborations with pharmaceutical companies and other organizations in the areas of drug discovery , development , and commercialization .

research , development and commercialization agreements provide the company with financial support and other valuable resources for its research programs and for the development of clinical drug candidates , and the marketing and sales of products .

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

 |
| table | common stock under stock and option plans    | 17739
-------------------------------------------- | -----
common stock under the vertex purchase plan  | 842
common stock under the vertex 401 ( k ) plan | 270
total                                        | 18851 |