| _id | dd4be623c |
| title |  |
| text | liquidity and capital resources we maintained a strong financial position throughout 2018 and as of 30 september 2018 our consolidated balance sheet included cash and cash items of $ 2791.3 .
we continue to have consistent access to commercial paper markets , and cash flows from operating and financing activities are expected to meet liquidity needs for the foreseeable future .

as of 30 september 2018 , we had $ 995.1 of foreign cash and cash items compared to a total amount of cash and cash items of $ 2791.3 .
as a result of the tax act , we currently do not expect that a significant portion of the earnings of our foreign subsidiaries and affiliates will be subject to u.s .
income tax upon subsequent repatriation to the united states .

depending on the country in which the subsidiaries and affiliates reside , the repatriation of these earnings may be subject to foreign withholding and other taxes .
however , since we have significant current investment plans outside the u.s. , it is our intent to permanently reinvest the majority of our foreign cash and cash items that would be subject to additional taxes outside the u.s .
refer to note 22 , income taxes , for additional information .

our cash flows from operating , investing , and financing activities from continuing operations , as reflected in the consolidated statements of cash flows , are summarized in the following table: .

operating activities for the year ended 2018 , cash provided by operating activities was $ 2554.7 .
income from continuing operations of $ 1455.6 was adjusted for items including depreciation and amortization , deferred income taxes , impacts from the tax act , undistributed earnings of unconsolidated affiliates , share-based compensation , and noncurrent capital lease receivables .
other adjustments of $ 131.6 include a $ 54.9 net impact from the remeasurement of intercompany transactions .

the related hedging instruments that eliminate the earnings impact are included as a working capital adjustment in other receivables or payables and accrued liabilities .
in addition , other adjustments were impacted by cash received from the early termination of a cross currency swap of $ 54.4 , as well as the excess of pension expense over pension contributions of $ 23.5 .

the working capital accounts were a use of cash of $ 265.4 , primarily driven by payables and accrued liabilities , inventories , and trade receivables , partially offset by other receivables .
the use of cash in payables and accrued liabilities of $ 277.7 includes a decrease in customer advances of $ 145.7 primarily related to sale of equipment activity and $ 67.1 for maturities of forward exchange contracts that hedged foreign currency exposures .

the use of cash in inventories primarily resulted from the purchase of helium molecules .
in addition , inventories reflect the noncash impact of our change in accounting for u.s .
inventories from lifo to fifo .
the source of cash from other receivables of $ 123.6 was primarily due to the maturities of forward exchange contracts that hedged foreign currency exposures for the year ended 2017 , cash provided by operating activities was $ 2534.1 .

income from continuing operations of $ 1134.4 included a goodwill and intangible asset impairment charge of $ 162.1 , an equity method investment impairment charge of $ 79.5 , and a write-down of long-lived assets associated with restructuring of $ 69.2 .

refer to note 5 , cost reduction and asset actions ; note 8 , summarized financial information of equity affiliates ; note 10 , goodwill ; and note 11 , intangible assets , of the consolidated financial statements for additional information on these charges .
other adjustments of $ 165.4 included changes in uncertain tax positions and the fair value of foreign exchange contracts that hedge intercompany loans as well as pension contributions and expense .

the working capital accounts were a source of cash of $ 48.0 that were primarily driven by payables and accrued liabilities and other receivables , partially offset by other working capital and trade receivables .
the increase in payables and accrued liabilities of $ 163.8 was primarily due to timing differences related to payables and accrued liabilities and an increase in customer advances of $ 52.8 primarily related to sale of equipment activity .

the source of cash from other receivables of $ 124.7 was primarily due to the maturities of forward exchange contracts that hedged foreign currency exposures .
other working capital was a use of cash of $ 154.0 , primarily driven by payments for income taxes .
trade receivables was a use of cash of $ 73.6 which is primarily due to timing differences.

 |
| table | cash provided by ( used for ) | 2018               | 2017               | 2016
----------------------------- | ------------------ | ------------------ | ----------------
operating activities          | $ 2554.7           | $ 2534.1           | $ 2258.8
investing activities          | -1649.1 ( 1649.1 ) | -1417.7 ( 1417.7 ) | -864.8 ( 864.8 )
financing activities          | -1359.8 ( 1359.8 ) | -2040.9 ( 2040.9 ) | -860.2 ( 860.2 ) |


| _id | dd4baab10 |
| title |  |
| text | entergy mississippi , inc .
management 2019s financial discussion and analysis the net wholesale revenue variance is primarily due to entergy mississippi 2019s exit from the system agreement in november 2015 .

the reserve equalization revenue variance is primarily due to the absence of reserve equalization revenue as compared to the same period in 2015 resulting from entergy mississippi 2019s exit from the system agreement in november 2015 compared to 2014 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges .

following is an analysis of the change in net revenue comparing 2015 to 2014 .
amount ( in millions ) .

the volume/weather variance is primarily due to an increase of 86 gwh , or 1% ( 1 % ) , in billed electricity usage , including the effect of more favorable weather on residential and commercial sales .

the retail electric price variance is primarily due to a $ 16 million net annual increase in revenues , effective february 2015 , as a result of the mpsc order in the june 2014 rate case and an increase in revenues collected through the energy efficiency rider , partially offset by a decrease in revenues collected through the storm damage rider .
the rate case included the realignment of certain costs from collection in riders to base rates .

see note 2 to the financial statements for a discussion of the rate case , the energy efficiency rider , and the storm damage rider .

the net wholesale revenue variance is primarily due to a wholesale customer contract termination in october transmission equalization revenue represents amounts received by entergy mississippi from certain other entergy utility operating companies , in accordance with the system agreement , to allocate the costs of collectively planning , constructing , and operating entergy 2019s bulk transmission facilities .

the transmission equalization variance is primarily attributable to the realignment , effective february 2015 , of these revenues from the determination of base rates to inclusion in a rider .
such revenues had a favorable effect on net revenue in 2014 , but minimal effect in 2015 .
entergy mississippi exited the system agreement in november 2015 .
see note 2 to the financial statements for a discussion of the system agreement .

reserve equalization revenue represents amounts received by entergy mississippi from certain other entergy utility operating companies , in accordance with the system agreement , to allocate the costs of collectively maintaining adequate electric generating capacity across the entergy system .
the reserve equalization variance is primarily attributable to the realignment , effective february 2015 , of these revenues from the determination of base rates to inclusion in a rider .

such revenues had a favorable effect on net revenue in 2014 , but minimal effect in 2015 .
entergy

 |
| table | | amount ( in millions )
------------------------- | ----------------------
2014 net revenue          | $ 701.2
volume/weather            | 8.9
retail electric price     | 7.3
net wholesale revenue     | -2.7 ( 2.7 )
transmission equalization | -5.4 ( 5.4 )
reserve equalization      | -5.5 ( 5.5 )
other                     | -7.5 ( 7.5 )
2015 net revenue          | $ 696.3 |


| _id | dd4b9c948 |
| title |  |
| text | international networks international networks generated revenues of $ 3.0 billion and adjusted oibda of $ 848 million during 2016 , which represented 47% ( 47 % ) and 35% ( 35 % ) of our total consolidated revenues and adjusted oibda , respectively .
our international networks segment principally consists of national and pan-regional television networks and brands that are delivered across multiple distribution platforms .

this segment generates revenue from operations in virtually every pay-tv market in the world through an infrastructure that includes operational centers in london , warsaw , milan , singapore and miami .
global brands include discovery channel , animal planet , tlc , id , science channel and turbo ( known as velocity in the u.s. ) , along with brands exclusive to international networks , including eurosport , real time , dmax and discovery kids .

as of december 31 , 2016 , international networks operated over 400 unique distribution feeds in over 40 languages with channel feeds customized according to language needs and advertising sales opportunities .
international networks also has fta and broadcast networks in europe and the middle east and broadcast networks in germany , norway and sweden , and continues to pursue further international expansion .
fta networks generate a significant portion of international networks' revenue .

the penetration and growth rates of television services vary across countries and territories depending on numerous factors including the dominance of different television platforms in local markets .
while pay-tv services have greater penetration in certain markets , fta or broadcast television is dominant in others .

international networks has a large international distribution platform for its 37 networks , with as many as 13 networks distributed in any particular country or territory across the more than 220 countries and territories around the world .
international networks pursues distribution across all television platforms based on the specific dynamics of local markets and relevant commercial agreements .

in addition to the global networks described in the overview section above , we operate networks internationally that utilize the following brands : 2022 eurosport is the leading sports entertainment provider across europe with the following tv brands : eurosport , eurosport 2 and eurosportnews , reaching viewers across europe and asia , as well as eurosport digital , which includes eurosport player and eurosport.com .

2022 viewing subscribers reached by each brand as of december 31 , 2016 were as follows : eurosport : 133 million ; eurosport 2 : 65 million ; and eurosportnews : 9 million .
2022 eurosport telecasts live sporting events with both local and pan-regional appeal and its events focus on winter sports , cycling and tennis , including the tour de france and it is the home of grand slam tennis with all four tournaments .
important local sports rights include bundesliga and motogp .

in addition , eurosport has increasingly invested in more exclusive and localized rights to drive local audience and commercial relevance .
2022 we have acquired the exclusive broadcast rights across all media platforms throughout europe for the four olympic games between 2018 and 2024 for 20ac1.3 billion ( $ 1.5 billion as of december 31 , 2016 ) .
the broadcast rights exclude france for the olympic games in 2018 and 2020 , and exclude russia .

in addition to fta broadcasts for the olympic games , many of these events are set to air on eurosport's pay-tv and digital platforms .

2022 on november 2 , 2016 , we announced a long-term agreement and joint venture partnership with bamtech ( "mlbam" ) a technology services and video streaming company , and subsidiary of major league baseball's digital business , that includes the formation of bamtech europe , a joint venture that will provide digital technology services to a broad set of both sports and entertainment clients across europe .

2022 as of december 31 , 2016 , dmax reached approximately 103 million viewers through fta networks , according to internal estimates .
2022 dmax is a men 2019s factual entertainment channel in asia and europe .
2022 discovery kids reached approximately 121 million viewers , according to internal estimates , as of december 31 , 2016 .
2022 discovery kids is a leading children's network in latin america and asia .

our international networks segment also owns and operates the following regional television networks , which reached the following number of subscribers and viewers via pay and fta or broadcast networks , respectively , as of december 31 , 2016 : television service international subscribers/viewers ( millions ) .

( a ) number of subscribers corresponds to the sum of the subscribers to each of the nordic broadcast networks in sweden , norway , finland and denmark subject to retransmission agreements with pay-tv providers .
the nordic broadcast networks include kanal 5 , kanal 9 , and kanal 11 in sweden , tv norge , max , fem and vox in norway , tv 5 , kutonen , and frii in finland , and kanal 4 , kanal 5 , 6'eren , and canal 9 in denmark .
similar to u.s .

similar to u.s .
networks , a significant source of revenue for international networks relates to fees charged to operators who distribute our linear networks .
such operators primarily include cable and dth satellite service providers .
international television markets vary in their stages of development .

some markets , such as the u.k. , are more advanced digital television markets , while others remain in the analog environment with varying degrees of investment from operators to expand channel capacity or convert to digital technologies .
common practice in some markets results in long-term contractual distribution relationships , while customers in other markets renew contracts annually .

distribution revenue for our international networks segment is largely dependent on the number of subscribers that receive our networks or content , the rates negotiated in the distributor agreements , and the market demand for the content that we provide .
the other significant source of revenue for international networks relates to advertising sold on our television networks and across distribution platforms , similar to u.s .
networks .

networks .
advertising revenue is dependent upon a number of factors , including the development of pay and fta television markets , the number of subscribers to and viewers of our channels , viewership demographics , the popularity of our programming , and our ability to sell commercial time over a portfolio of channels on multiple platforms .
in certain markets , our advertising sales business operates with in-house sales teams , while we rely on external sales representation services in other markets .

in developing television markets , advertising revenue growth results from continued subscriber growth , our localization strategy , and the shift of advertising spending from traditional broadcast networks to channels

 |
| table | | television service | internationalsubscribers/viewers ( millions )
------------------------------- | ------------------ | ---------------------------------------------
quest                           | fta                | 77
nordic broadcast networks ( a ) | broadcast          | 35
giallo                          | fta                | 25
frisbee                         | fta                | 25
focus                           | fta                | 25
k2                              | fta                | 25
deejay tv                       | fta                | 25
discovery hd world              | pay                | 24
shed                            | pay                | 12
discovery history               | pay                | 10
discovery world                 | pay                | 6
discovery en espanol ( u.s. )   | pay                | 6
discovery familia ( u.s. )      | pay                | 6 |


| _id | dd4b91b88 |
| title |  |
| text | 13 .
rentals and leases the company leases sales and administrative office facilities , distribution centers , research and manufacturing facilities , as well as vehicles and other equipment under operating leases .
total rental expense under the company 2019s operating leases was $ 239 million in 2017 and $ 221 million in both 2016 and 2015 .
as of december 31 , 2017 , identifiable future minimum payments with non-cancelable terms in excess of one year were : ( millions ) .

the company enters into operating leases for vehicles whose non-cancelable terms are one year or less in duration with month-to-month renewal options .
these leases have been excluded from the table above .
the company estimates payments under such leases will approximate $ 62 million in 2018 .
these vehicle leases have guaranteed residual values that have historically been satisfied by the proceeds on the sale of the vehicles .
14 .

14 .
research and development expenditures research expenditures that relate to the development of new products and processes , including significant improvements and refinements to existing products , are expensed as incurred .
such costs were $ 201 million in 2017 , $ 189 million in 2016 and $ 191 million in 2015 .
the company did not participate in any material customer sponsored research during 2017 , 2016 or 2015 .
15 .

15 .
commitments and contingencies the company is subject to various claims and contingencies related to , among other things , workers 2019 compensation , general liability ( including product liability ) , automobile claims , health care claims , environmental matters and lawsuits .
the company is also subject to various claims and contingencies related to income taxes , which are discussed in note 12 .

the company also has contractual obligations including lease commitments , which are discussed in note 13 .
the company records liabilities where a contingent loss is probable and can be reasonably estimated .
if the reasonable estimate of a probable loss is a range , the company records the most probable estimate of the loss or the minimum amount when no amount within the range is a better estimate than any other amount .

the company discloses a contingent liability even if the liability is not probable or the amount is not estimable , or both , if there is a reasonable possibility that a material loss may have been incurred .
insurance globally , the company has insurance policies with varying deductibility levels for property and casualty losses .

the company is insured for losses in excess of these deductibles , subject to policy terms and conditions and has recorded both a liability and an offsetting receivable for amounts in excess of these deductibles .
the company is self-insured for health care claims for eligible participating employees , subject to certain deductibles and limitations .
the company determines its liabilities for claims on an actuarial basis .

litigation and environmental matters the company and certain subsidiaries are party to various lawsuits , claims and environmental actions that have arisen in the ordinary course of business .

these include from time to time antitrust , commercial , patent infringement , product liability and wage hour lawsuits , as well as possible obligations to investigate and mitigate the effects on the environment of the disposal or release of certain chemical substances at various sites , such as superfund sites and other operating or closed facilities .
the company has established accruals for certain lawsuits , claims and environmental matters .

the company currently believes that there is not a reasonably possible risk of material loss in excess of the amounts accrued related to these legal matters .
because litigation is inherently uncertain , and unfavorable rulings or developments could occur , there can be no certainty that the company may not ultimately incur charges in excess of recorded liabilities .

a future adverse ruling , settlement or unfavorable development could result in future charges that could have a material adverse effect on the company 2019s results of operations or cash flows in the period in which they are recorded .
the company currently believes that such future charges related to suits and legal claims , if any , would not have a material adverse effect on the company 2019s consolidated financial position .

environmental matters the company is currently participating in environmental assessments and remediation at approximately 45 locations , the majority of which are in the u.s. , and environmental liabilities have been accrued reflecting management 2019s best estimate of future costs .
potential insurance reimbursements are not anticipated in the company 2019s accruals for environmental liabilities.

 |
| table | 2018       | $ 131
---------- | -----
2019       | 115
2020       | 96
2021       | 86
2022       | 74
thereafter | 115
total      | $ 617 |


| _id | dd496ca2e |
| title |  |
| text | as of december 31 , 2017 , the company had gross state income tax credit carry-forwards of approximately $ 20 million , which expire from 2018 through 2020 .
a deferred tax asset of approximately $ 16 million ( net of federal benefit ) has been established related to these state income tax credit carry-forwards , with a valuation allowance of $ 7 million against such deferred tax asset as of december 31 , 2017 .

the company had a gross state net operating loss carry-forward of $ 39 million , which expires in 2027 .
a deferred tax asset of approximately $ 3 million ( net of federal benefit ) has been established for the net operating loss carry-forward , with a full valuation allowance as of december 31 , 2017 .
other state and foreign net operating loss carry-forwards are separately and cumulatively immaterial to the company 2019s deferred tax balances and expire between 2026 and 2036 .
14 .

14 .
debt long-term debt consisted of the following: .

credit facility - in november 2017 , the company terminated its second amended and restated credit agreement and entered into a new credit agreement ( the "credit facility" ) with third-party lenders .
the credit facility includes a revolving credit facility of $ 1250 million , which may be drawn upon during a period of five years from november 22 , 2017 .
the revolving credit facility includes a letter of credit subfacility of $ 500 million .

the revolving credit facility has a variable interest rate on outstanding borrowings based on the london interbank offered rate ( "libor" ) plus a spread based upon the company's credit rating , which may vary between 1.125% ( 1.125 % ) and 1.500% ( 1.500 % ) .
the revolving credit facility also has a commitment fee rate on the unutilized balance based on the company 2019s leverage ratio .

the commitment fee rate as of december 31 , 2017 was 0.25% ( 0.25 % ) and may vary between 0.20% ( 0.20 % ) and 0.30% ( 0.30 % ) .
the credit facility contains customary affirmative and negative covenants , as well as a financial covenant based on a maximum total leverage ratio .
each of the company's existing and future material wholly owned domestic subsidiaries , except those that are specifically designated as unrestricted subsidiaries , are and will be guarantors under the credit facility .

in july 2015 , the company used cash on hand to repay all amounts outstanding under a prior credit facility , including $ 345 million in principal amount of outstanding term loans .
as of december 31 , 2017 , $ 15 million in letters of credit were issued but undrawn , and the remaining $ 1235 million of the revolving credit facility was unutilized .

the company had unamortized debt issuance costs associated with its credit facilities of $ 11 million and $ 8 million as of december 31 , 2017 and 2016 , respectively .

senior notes - in december 2017 , the company issued $ 600 million aggregate principal amount of unregistered 3.483% ( 3.483 % ) senior notes with registration rights due december 2027 , the net proceeds of which were used to repurchase the company's 5.000% ( 5.000 % ) senior notes due in 2021 in connection with the 2017 redemption described below .

in november 2015 , the company issued $ 600 million aggregate principal amount of unregistered 5.000% ( 5.000 % ) senior notes due november 2025 , the net proceeds of which were used to repurchase the company's 7.125% ( 7.125 % ) senior notes due in 2021 in connection with the 2015 tender offer and redemption described below .
interest on the company's senior notes is payable semi-annually .

the terms of the 5.000% ( 5.000 % ) and 3.483% ( 3.483 % ) senior notes limit the company 2019s ability and the ability of certain of its subsidiaries to create liens , enter into sale and leaseback transactions , sell assets , and effect consolidations or mergers .
the company had unamortized debt issuance costs associated with the senior notes of $ 15 million and $ 19 million as of december 31 , 2017 and 2016 , respectively.

 |
| table | ( $ in millions )                                                                               | december 31 2017 | december 31 2016
----------------------------------------------------------------------------------------------- | ---------------- | ----------------
senior notes due december 15 2021 5.000% ( 5.000 % )                                            | 2014             | 600
senior notes due november 15 2025 5.000% ( 5.000 % )                                            | 600              | 600
senior notes due december 1 2027 3.483% ( 3.483 % )                                             | 600              | 2014
mississippi economic development revenue bonds due may 1 2024 7.81% ( 7.81 % )                  | 84               | 84
gulf opportunity zone industrial development revenue bonds due december 1 2028 4.55% ( 4.55 % ) | 21               | 21
less unamortized debt issuance costs                                                            | -26 ( 26 )       | -27 ( 27 )
total long-term debt                                                                            | 1279             | 1278 |


| _id | dd4ba163c |
| title |  |
| text | we include here by reference additional information relating to pnc common stock under the common stock prices/ dividends declared section in the statistical information ( unaudited ) section of item 8 of this report .

we include here by reference the information regarding our compensation plans under which pnc equity securities are authorized for issuance as of december 31 , 2015 in the table ( with introductory paragraph and notes ) that appears under the caption 201capproval of 2016 incentive award plan 2013 item 3 201d in our proxy statement to be filed for the 2016 annual meeting of shareholders and is incorporated by reference herein and in item 12 of this report .

our stock transfer agent and registrar is : computershare trust company , n.a .
250 royall street canton , ma 02021 800-982-7652 registered shareholders may contact the above phone number regarding dividends and other shareholder services .
we include here by reference the information that appears under the common stock performance graph caption at the end of this item 5 .
( a ) ( 2 ) none .
( b ) not applicable .

( a ) ( 2 ) none .
( b ) not applicable .
( c ) details of our repurchases of pnc common stock during the fourth quarter of 2015 are included in the following table : in thousands , except per share data 2015 period total shares purchased ( a ) average paid per total shares purchased as part of publicly announced programs ( b ) maximum number of shares that may yet be purchased under the programs ( b ) .

( a ) includes pnc common stock purchased in connection with our various employee benefit plans generally related to forfeitures of unvested restricted stock awards and shares used to cover employee payroll tax withholding requirements .
note 12 employee benefit plans and note 13 stock based compensation plans in the notes to consolidated financial statements in item 8 of this report include additional information regarding our employee benefit and equity compensation plans that use pnc common stock .

( b ) on march 11 , 2015 , we announced that our board of directors had approved the establishment of a new stock repurchase program authorization in the amount of 100 million shares of pnc common stock , effective april 1 , 2015 .

repurchases are made in open market or privately negotiated transactions and the timing and exact amount of common stock repurchases will depend on a number of factors including , among others , market and general economic conditions , economic capital and regulatory capital considerations , alternative uses of capital , the potential impact on our credit ratings , and contractual and regulatory limitations , including the results of the supervisory assessment of capital adequacy and capital planning

of capital adequacy and capital planning processes undertaken by the federal reserve as part of the ccar process .

our 2015 capital plan , submitted as part of the ccar process and accepted by the federal reserve , included share repurchase programs of up to $ 2.875 billion for the five quarter period beginning with the second quarter of 2015 .
this amount does not include share repurchases in connection with various employee benefit plans referenced in note ( a ) .

in the fourth quarter of 2015 , in accordance with pnc 2019s 2015 capital plan and under the share repurchase authorization in effect during that period , we repurchased 5.8 million shares of common stock on the open market , with an average price of $ 92.26 per share and an aggregate repurchase price of $ .5 billion .
30 the pnc financial services group , inc .
2013 form 10-k

 |
| table | 2015 period        | total sharespurchased ( a ) | averagepricepaid pershare | total sharespurchased aspartofpubliclyannouncedprograms ( b ) | maximumnumberofshares thatmay yet bepurchasedunder theprograms ( b )
------------------ | --------------------------- | ------------------------- | ------------------------------------------------------------- | --------------------------------------------------------------------
october 1 2013 31  | 2528                        | $ 89.24                   | 2506                                                          | 85413
november 1 2013 30 | 1923                        | $ 94.06                   | 1923                                                          | 83490
december 1 2013 31 | 1379                        | $ 95.20                   | 1379                                                          | 82111
total              | 5830                        | $ 92.24                   |                                                               | |


| _id | dd4bb227a |
| title |  |
| text | eastman notes to the audited consolidated financial statements stock option awards option awards are granted to non-employee directors on an annual basis and to employees who meet certain eligibility requirements .

a single annual option grant is usually awarded to eligible employees in the fourth quarter of each year , if and when granted by the compensation and management development committee of the board of directors , and occasional individual grants are awarded to eligible employees throughout the year .
option awards have an exercise price equal to the closing price of the company's stock on the date of grant .
the term of options is ten years with vesting periods that vary up to three years .

vesting usually occurs ratably or at the end of the vesting period .
sfas no .
123 ( r ) requires that stock option awards be valued at fair value determined by market price , if actively traded in a public market or , if not , calculated using an option pricing financial model .
the fair value of the company's options cannot be determined by market value as they are not traded in an open market .
accordingly , a financial pricing model is utilized to determine fair value .

the company utilizes the black scholes merton ( "bsm" ) model which relies on certain assumptions to estimate an option's fair value .
the weighted average assumptions used in the determination of fair value for stock options awarded in 2006 , 2005 and 2004 are provided in the table below: .

prior to adoption of sfas no .
123 ( r ) , the company calculated the expected term of stock options of six years .
effective with the fourth quarter 2005 annual option award , the company analyzed historical annual grant transactions over a ten year period comprising exercises , post-vesting cancellations and expirations to determine the expected term .

the company expects to execute this analysis each year preceding the annual option grant to ensure that all assumptions based upon internal data reflect the most reasonable expectations for fair value determination .
the weighted average expected term of 4.4 years for 2006 reflects the impact of this annual analysis and the weighting of option swap and reload grants which may have much shorter expected terms than new option grants .

the volatility rate of grants is derived from historical company common stock volatility over the same time period as the expected term .
the company uses a weekly high closing stock price based upon daily closing prices in the week .
the volatility rate is derived by mathematical formula utilizing the weekly high closing price data .

for the periods presented above , the expected dividend yield is derived by mathematical formula which uses the expected company annual dividend amount over the expected term divided by the fair market value of the company's common stock at the grant date .
the average risk-free interest rate is derived from united states department of treasury published interest rates of daily yield curves for the same time period as the expected term .
prior to adoption of sfas no .

prior to adoption of sfas no .
123 ( r ) , the company did not estimate forfeitures and recognized them as they occurred for proforma disclosure of share-based compensation expense .
with adoption of sfas no .
123 ( r ) , estimated forfeitures must be considered in recording share-based compensation expense .
estimated forfeiture rates vary with each type of award affected by several factors , one of which is the varying composition and characteristics of the award participants .

estimated forfeitures for the company's share-based awards historically range from 0.75 percent to 10.0 percent with the estimated forfeitures for options at 0.75 percent.

 |
| table | assumptions                     | 2006               | 2005               | 2004
------------------------------- | ------------------ | ------------------ | ------------------
expected volatility rate        | 21.40% ( 21.40 % ) | 22.90% ( 22.90 % ) | 28.00% ( 28.00 % )
expected dividend yield         | 3.24% ( 3.24 % )   | 3.29% ( 3.29 % )   | 3.80% ( 3.80 % )
average risk-free interest rate | 4.62% ( 4.62 % )   | 4.48% ( 4.48 % )   | 3.46% ( 3.46 % )
expected forfeiture rate        | 0.75% ( 0.75 % )   | actual             | actual
expected term years             | 4.40               | 5.00               | 6.00 |


| _id | dd49775fa |
| title |  |
| text | contractual obligations for future payments under existing debt and lease commitments and purchase obli- gations at december 31 , 2005 , were as follows : in millions 2006 2007 2008 2009 2010 thereafter .

( a ) the 2006 amount includes $ 2.4 billion for contracts made in the ordinary course of business to purchase pulpwood , logs and wood chips .
the majority of our other purchase obligations are take-or-pay or purchase commitments made in the ordinary course of business related to raw material purchases and energy contracts .
other significant items include purchase obligations related to contracted services .

transformation plan in july 2005 , the company announced a plan to focus its business portfolio on two key global platform businesses : uncoated papers ( including distribution ) and packaging .
the plan also focuses on improving shareholder return through mill realignments in those two businesses , additional cost improvements and exploring strategic options for other businesses , includ- ing possible sale or spin-off .

in connection with this process , in the third quarter of 2005 , the company completed the sale of its 50.5% ( 50.5 % ) interest in carter holt harvey limited .

other businesses currently under re- view include : 2022 the coated and supercalendered papers busi- ness , including the coated groundwood mill and associated assets in brazil , 2022 the beverage packaging business , including the pine bluff , arkansas mill , 2022 the kraft papers business , including the roa- noke rapids , north carolina mill , 2022 arizona chemical , 2022 the wood products business , and 2022 segments or potentially all of the company 2019s 6.5 million acres of u.s .
forestlands .

forestlands .
consistent with this evaluation process , the com- pany has distributed bid package information for some of these businesses .
the exact timing of this evaluation process will vary by business ; however , it is anticipated that decisions will be made for some of these businesses during 2006 .

while the exact use of any proceeds from potential future sales is dependent upon various factors affecting future cash flows , such as the amount of any proceeds received and changes in market conditions , input costs and capital spending , the company remains committed to using its free cash flow in 2006 to pay down debt , to return value to shareholders , and for se- lective high-return investments .

critical accounting policies the preparation of financial statements in con- formity with generally accepted accounting principles in the united states requires international paper to estab- lish accounting policies and to make estimates that af- fect both the amounts and timing of the recording of assets , liabilities , revenues and expenses .
some of these estimates require judgments about matters that are in- herently uncertain .

accounting policies whose application may have a significant effect on the reported results of operations and financial position of international paper , and that can require judgments by management that affect their application , include sfas no .
5 , 201caccounting for contingencies , 201d sfas no .
144 , 201caccounting for the impairment or disposal of long-lived assets , 201d sfas no .
142 , 201cgoodwill and other intangible assets , 201d sfas no .

87 , 201cemployers 2019 accounting for pensions , 201d sfas no .
106 , 201cemployers 2019 accounting for postretirement benefits other than pensions , 201d as amended by sfas nos .
132 and 132r , 201cemployers 2019 disclosures about pension and other postretirement benefits , 201d and sfas no .
109 , 201caccounting for income taxes . 201d the following is a discussion of the impact of these accounting policies on international paper : contingent liabilities .

accruals for contingent li- abilities , including legal and environmental matters , are recorded when it is probable that a liability has been incurred or an asset impaired and the amount of the loss can be reasonably estimated .
liabilities accrued for legal matters require judgments regarding projected outcomes and range of loss based on historical experience and recommendations of legal counsel .
additionally , as dis- cussed in note 10 of the notes to consolidated finan- cial statements in item 8 .

financial statements and supplementary data , reserves for projected future claims settlements relating to exterior siding and roofing prod- ucts previously manufactured by masonite require judgments regarding projections of future claims rates and amounts .
international paper utilizes an in- dependent third party consultant to assist in developing these estimates .

liabilities for environmental matters require evaluations of relevant environmental regu- lations and estimates of future remediation alternatives and costs .
international paper determines these esti- mates after a detailed evaluation of each site .
impairment of long-lived assets and goodwill .
an impairment of a long-lived asset exists when the asset 2019s carrying amount exceeds its fair value , and is recorded when the carrying amount is not recoverable through future operations .

a goodwill impairment exists when the carrying amount of goodwill exceeds its fair value .
assessments of possible impairments of long-lived assets and goodwill are made when events or changes in cir- cumstances indicate that the carrying value of the asset

 |
| table | in millions                | 2006   | 2007   | 2008  | 2009   | 2010   | thereafter
-------------------------- | ------ | ------ | ----- | ------ | ------ | ----------
total debt                 | $ 1181 | $ 570  | $ 308 | $ 2330 | $ 1534 | $ 6281
lease obligations          | 172    | 144    | 119   | 76     | 63     | 138
purchase obligations ( a ) | 3264   | 393    | 280   | 240    | 204    | 1238
total                      | $ 4617 | $ 1107 | $ 707 | $ 2646 | $ 1801 | $ 7657 |


| _id | dd4c28ca4 |
| title |  |
| text | see note 10 goodwill and other intangible assets for further discussion of the accounting for goodwill and other intangible assets .
the estimated amount of rbc bank ( usa ) revenue and net income ( excluding integration costs ) included in pnc 2019s consolidated income statement for 2012 was $ 1.0 billion and $ 273 million , respectively .

upon closing and conversion of the rbc bank ( usa ) transaction , subsequent to march 2 , 2012 , separate records for rbc bank ( usa ) as a stand-alone business have not been maintained as the operations of rbc bank ( usa ) have been fully integrated into pnc .
rbc bank ( usa ) revenue and earnings disclosed above reflect management 2019s best estimate , based on information available at the reporting date .

the following table presents certain unaudited pro forma information for illustrative purposes only , for 2012 and 2011 as if rbc bank ( usa ) had been acquired on january 1 , 2011 .
the unaudited estimated pro forma information combines the historical results of rbc bank ( usa ) with the company 2019s consolidated historical results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the respective periods .

the pro forma information is not indicative of what would have occurred had the acquisition taken place on january 1 , 2011 .
in particular , no adjustments have been made to eliminate the impact of other-than-temporary impairment losses and losses recognized on the sale of securities that may not have been necessary had the investment securities been recorded at fair value as of january 1 , 2011 .

the unaudited pro forma information does not consider any changes to the provision for credit losses resulting from recording loan assets at fair value .
additionally , the pro forma financial information does not include the impact of possible business model changes and does not reflect pro forma adjustments to conform accounting policies between rbc bank ( usa ) and pnc .

additionally , pnc expects to achieve further operating cost savings and other business synergies , including revenue growth , as a result of the acquisition that are not reflected in the pro forma amounts that follow .
as a result , actual results will differ from the unaudited pro forma information presented .
table 57 : rbc bank ( usa ) and pnc unaudited pro forma results .

in connection with the rbc bank ( usa ) acquisition and other prior acquisitions , pnc recognized $ 267 million of integration charges in 2012 .
pnc recognized $ 42 million of integration charges in 2011 in connection with prior acquisitions .
the integration charges are included in the table above .

sale of smartstreet effective october 26 , 2012 , pnc divested certain deposits and assets of the smartstreet business unit , which was acquired by pnc as part of the rbc bank ( usa ) acquisition , to union bank , n.a .
smartstreet is a nationwide business focused on homeowner or community association managers and had approximately $ 1 billion of assets and deposits as of september 30 , 2012 .

the gain on sale was immaterial and resulted in a reduction of goodwill and core deposit intangibles of $ 46 million and $ 13 million , respectively .
results from operations of smartstreet from march 2 , 2012 through october 26 , 2012 are included in our consolidated income statement .
flagstar branch acquisition effective december 9 , 2011 , pnc acquired 27 branches in the northern metropolitan atlanta , georgia area from flagstar bank , fsb , a subsidiary of flagstar bancorp , inc .

the fair value of the assets acquired totaled approximately $ 211.8 million , including $ 169.3 million in cash , $ 24.3 million in fixed assets and $ 18.2 million of goodwill and intangible assets .
we also assumed approximately $ 210.5 million of deposits associated with these branches .
no deposit premium was paid and no loans were acquired in the transaction .
our consolidated income statement includes the impact of the branch activity subsequent to our december 9 , 2011 acquisition .

bankatlantic branch acquisition effective june 6 , 2011 , we acquired 19 branches in the greater tampa , florida area from bankatlantic , a subsidiary of bankatlantic bancorp , inc .
the fair value of the assets acquired totaled $ 324.9 million , including $ 256.9 million in cash , $ 26.0 million in fixed assets and $ 42.0 million of goodwill and intangible assets .
we also assumed approximately $ 324.5 million of deposits associated with these branches .

a $ 39.0 million deposit premium was paid and no loans were acquired in the transaction .
our consolidated income statement includes the impact of the branch activity subsequent to our june 6 , 2011 acquisition .
sale of pnc global investment servicing on july 1 , 2010 , we sold pnc global investment servicing inc .

( gis ) , a leading provider of processing , technology and business intelligence services to asset managers , broker- dealers and financial advisors worldwide , for $ 2.3 billion in cash pursuant to a definitive agreement entered into on february 2 , 2010 .
this transaction resulted in a pretax gain of $ 639 million , net of transaction costs , in the third quarter of 2010 .

this gain and results of operations of gis through june 30 , 2010 are presented as income from discontinued operations , net of income taxes , on our consolidated income statement .
as part of the sale agreement , pnc has agreed to provide certain transitional services on behalf of gis until completion of related systems conversion activities .
138 the pnc financial services group , inc .
2013 form 10-k

 |
| table | in millions    | for the year ended december 31 2012 | for the year ended december 31 2011
-------------- | ----------------------------------- | -----------------------------------
total revenues | $ 15721                             | $ 15421
net income     | 2989                                | 2911 |


| _id | dd4b96a84 |
| title |  |
| text | provision for income taxes increased $ 1791 million in 2012 from 2011 primarily due to the increase in pretax income from continuing operations , including the impact of the resumption of sales in libya in the first quarter of 2012 .
the following is an analysis of the effective income tax rates for 2012 and 2011: .

the effective income tax rate is influenced by a variety of factors including the geographic sources of income and the relative magnitude of these sources of income .
the provision for income taxes is allocated on a discrete , stand-alone basis to pretax segment income and to individual items not allocated to segments .

the difference between the total provision and the sum of the amounts allocated to segments appears in the "corporate and other unallocated items" shown in the reconciliation of segment income to net income below .
effects of foreign operations 2013 the effects of foreign operations on our effective tax rate increased in 2012 as compared to 2011 , primarily due to the resumption of sales in libya in the first quarter of 2012 , where the statutory rate is in excess of 90 percent .

change in permanent reinvestment assertion 2013 in the second quarter of 2011 , we recorded $ 716 million of deferred u.s .
tax on undistributed earnings of $ 2046 million that we previously intended to permanently reinvest in foreign operations .
offsetting this tax expense were associated foreign tax credits of $ 488 million .
in addition , we reduced our valuation allowance related to foreign tax credits by $ 228 million due to recognizing deferred u.s .
tax on previously undistributed earnings .

tax on previously undistributed earnings .
adjustments to valuation allowances 2013 in 2012 and 2011 , we increased the valuation allowance against foreign tax credits because it is more likely than not that we will be unable to realize all u.s .
benefits on foreign taxes accrued in those years .
see item 8 .
financial statements and supplementary data - note 10 to the consolidated financial statements for further information about income taxes .

discontinued operations is presented net of tax , and reflects our downstream business that was spun off june 30 , 2011 and our angola business which we agreed to sell in 2013 .
see item 8 .
financial statements and supplementary data 2013 notes 3 and 6 to the consolidated financial statements for additional information.

 |
| table | | 2012         | 2011
------------------------------------------------------------------------------- | ------------ | ------------
statutory rate applied to income from continuing operations before income taxes | 35% ( 35 % ) | 35% ( 35 % )
effects of foreign operations including foreign tax credits                     | 18           | 6
change in permanent reinvestment assertion                                      | 2014         | 5
adjustments to valuation allowances                                             | 21           | 14
tax law changes                                                                 | 2014         | 1
effective income tax rate on continuing operations                              | 74% ( 74 % ) | 61% ( 61 % ) |


| _id | dd4bb5d12 |
| title |  |
| text | augusta , georgia mill and $ 2 million of costs associated with the sale of the shorewood business .
consumer packaging .

north american consumer packaging net sales were $ 1.9 billion in 2015 compared with $ 2.0 billion in 2014 and $ 2.0 billion in 2013 .

operating profits were $ 81 million ( $ 91 million excluding the cost associated with the planned conversion of our riegelwood mill to 100% ( 100 % ) pulp production , net of proceeds from the sale of the carolina coated bristols brand , and sheet plant closure costs ) in 2015 compared with $ 92 million ( $ 100 million excluding sheet plant closure costs ) in 2014 and $ 63 million ( $ 110 million excluding paper machine shutdown costs and costs related to the sale of the shorewood business ) in 2013 .

coated paperboard sales volumes in 2015 were lower than in 2014 reflecting weaker market demand .
the business took about 77000 tons of market-related downtime in 2015 compared with about 41000 tons in 2014 .
average sales price realizations increased modestly year over year as competitive pressures in the current year only partially offset the impact of sales price increases implemented in 2014 .
input costs decreased for energy and chemicals , but wood costs increased .

planned maintenance downtime costs were $ 10 million lower in 2015 .
operating costs were higher , mainly due to inflation and overhead costs .
foodservice sales volumes increased in 2015 compared with 2014 reflecting strong market demand .
average sales margins increased due to lower resin costs and a more favorable mix .
operating costs and distribution costs were both higher .

looking ahead to the first quarter of 2016 , coated paperboard sales volumes are expected to be slightly lower than in the fourth quarter of 2015 due to our exit from the coated bristols market .
average sales price realizations are expected to be flat , but margins should benefit from a more favorable product mix .
input costs are expected to be higher for wood , chemicals and energy .

planned maintenance downtime costs should be $ 4 million higher with a planned maintenance outage scheduled at our augusta mill in the first quarter .
foodservice sales volumes are expected to be seasonally lower .
average sales margins are expected to improve due to a more favorable mix .
operating costs are expected to decrease .
european consumer packaging net sales in 2015 were $ 319 million compared with $ 365 million in 2014 and $ 380 million in 2013 .

operating profits in 2015 were $ 87 million compared with $ 91 million in 2014 and $ 100 million in 2013 .
sales volumes in 2015 compared with 2014 increased in europe , but decreased in russia .
average sales margins improved in russia due to slightly higher average sales price realizations and a more favorable mix .
in europe average sales margins decreased reflecting lower average sales price realizations and an unfavorable mix .

input costs were lower in europe , primarily for wood and energy , but were higher in russia , primarily for wood .
looking forward to the first quarter of 2016 , compared with the fourth quarter of 2015 , sales volumes are expected to be stable .
average sales price realizations are expected to be slightly higher in both russia and europe .
input costs are expected to be flat , while operating costs are expected to increase .

asian consumer packaging the company sold its 55% ( 55 % ) equity share in the ip-sun jv in october 2015 .
net sales and operating profits presented below include results through september 30 , 2015 .
net sales were $ 682 million in 2015 compared with $ 1.0 billion in 2014 and $ 1.1 billion in 2013 .
operating profits in 2015 were a loss of $ 193 million ( a loss of $ 19 million excluding goodwill and other asset impairment costs ) compared with losses of $ 5 million in 2014 and $ 2 million in 2013 .

sales volumes and average sales price realizations were lower in 2015 due to over-supplied market conditions and competitive pressures .
average sales margins were also negatively impacted by a less favorable mix .
input costs and freight costs were lower and operating costs also decreased .

on october 13 , 2015 , the company finalized the sale of its 55% ( 55 % ) interest in ip asia coated paperboard ( ip- sun jv ) business , within the company's consumer packaging segment , to its chinese coated board joint venture partner , shandong sun holding group co. , ltd .
for rmb 149 million ( approximately usd $ 23 million ) .

during the third quarter of 2015 , a determination was made that the current book value of the asset group exceeded its estimated fair value of $ 23 million , which was the agreed upon selling price .
the 2015 loss includes the net pre-tax impairment charge of $ 174 million ( $ 113 million after taxes ) .
a pre-tax charge of $ 186 million was recorded during the third quarter in the company's consumer packaging segment to write down the long-lived assets of this business to their estimated fair value .

in the fourth quarter of 2015 , upon the sale and corresponding deconsolidation of ip-sun jv from the company's consolidated balance sheet , final adjustments were made resulting in a reduction of the impairment of $ 12 million .
the amount of pre-tax losses related to noncontrolling interest of the ip-sun jv included in the company's consolidated statement of operations for the years ended december 31 , 2015 , 2014 and 2013 were $ 19 million , $ 12 million and $ 8 million , respectively .

the amount of pre-tax losses related to the ip-sun jv included in the company's

 |
| table | in millions               | 2015       | 2014   | 2013
------------------------- | ---------- | ------ | ------
sales                     | $ 2940     | $ 3403 | $ 3435
operating profit ( loss ) | -25 ( 25 ) | 178    | 161 |


| _id | dd4983832 |
| title |  |
| text | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2017 , 2016 , and 2015 on december 8 , 2017 , the board of directors declared a quarterly common stock dividend of $ 0.13 per share payable on february 15 , 2018 to shareholders of record at the close of business on february 1 , 2018 .
stock repurchase program 2014 no shares were repurchased in 2017 .

the cumulative repurchases from the commencement of the program in july 2010 through december 31 , 2017 totaled 154.3 million shares for a total cost of $ 1.9 billion , at an average price per share of $ 12.12 ( including a nominal amount of commissions ) .
as of december 31 , 2017 , $ 246 million remained available for repurchase under the program .
the common stock repurchased has been classified as treasury stock and accounted for using the cost method .

a total of 155924785 and 156878891 shares were held as treasury stock at december 31 , 2017 and 2016 , respectively .
restricted stock units under the company's employee benefit plans are issued from treasury stock .
the company has not retired any common stock repurchased since it began the program in july 2010 .
15 .

15 .
segments and geographic information the segment reporting structure uses the company's organizational structure as its foundation to reflect how the company manages the businesses internally and is organized by geographic regions which provides a socio- political-economic understanding of our business .
during the third quarter of 2017 , the europe and asia sbus were merged in order to leverage scale and are now reported as part of the eurasia sbu .

the management reporting structure is organized by five sbus led by our president and chief executive officer : us , andes , brazil , mcac and eurasia sbus .
the company determined that it has five operating and five reportable segments corresponding to its sbus .
all prior period results have been retrospectively revised to reflect the new segment reporting structure .

in february 2018 , we announced a reorganization as a part of our ongoing strategy to simplify our portfolio , optimize our cost structure , and reduce our carbon intensity .
the company is currently evaluating the impact this reorganization will have on our segment reporting structure .

corporate and other 2014 corporate overhead costs which are not directly associated with the operations of our five reportable segments are included in "corporate and other." also included are certain intercompany charges such as self-insurance premiums which are fully eliminated in consolidation .
the company uses adjusted ptc as its primary segment performance measure .

adjusted ptc , a non-gaap measure , is defined by the company as pre-tax income from continuing operations attributable to the aes corporation excluding gains or losses of the consolidated entity due to ( a ) unrealized gains or losses related to derivative transactions ; ( b ) unrealized foreign currency gains or losses ; ( c ) gains , losses and associated benefits and costs due to dispositions and acquisitions of business interests , including early plant closures ; ( d ) losses due to impairments ; ( e

closures ; ( d ) losses due to impairments ; ( e ) gains , losses and costs due to the early retirement of debt ; and ( f ) costs directly associated with a major restructuring program , including , but not limited to , workforce reduction efforts , relocations , and office consolidation .

adjusted ptc also includes net equity in earnings of affiliates on an after-tax basis adjusted for the same gains or losses excluded from consolidated entities .
the company has concluded adjusted ptc better reflects the underlying business performance of the company and is the most relevant measure considered in the company's internal evaluation of the financial performance of its segments .

additionally , given its large number of businesses and complexity , the company concluded that adjusted ptc is a more transparent measure that better assists investors in determining which businesses have the greatest impact on the company's results .

revenue and adjusted ptc are presented before inter-segment eliminations , which includes the effect of intercompany transactions with other segments except for interest , charges for certain management fees , and the write-off of intercompany balances , as applicable .
all intra-segment activity has been eliminated within the segment .
inter-segment activity has been eliminated within the total consolidated results .

the following tables present financial information by segment for the periods indicated ( in millions ) : .

 |
| table | year ended december 31, | total revenue 2017 | total revenue 2016 | total revenue 2015
----------------------- | ------------------ | ------------------ | ------------------
us sbu                  | $ 3229             | $ 3429             | $ 3593
andes sbu               | 2710               | 2506               | 2489
brazil sbu              | 542                | 450                | 962
mcac sbu                | 2448               | 2172               | 2353
eurasia sbu             | 1590               | 1670               | 1875
corporate and other     | 35                 | 77                 | 31
eliminations            | -24 ( 24 )         | -23 ( 23 )         | -43 ( 43 )
total revenue           | $ 10530            | $ 10281            | $ 11260 |


| _id | dd4bafc78 |
| title |  |
| text | page 45 of 100 ball corporation and subsidiaries notes to consolidated financial statements 3 .
acquisitions latapack-ball embalagens ltda .
( latapack-ball ) in august 2010 , the company paid $ 46.2 million to acquire an additional 10.1 percent economic interest in its brazilian beverage packaging joint venture , latapack-ball , through a transaction with the joint venture partner , latapack s.a .

this transaction increased the company 2019s overall economic interest in the joint venture to 60.1 percent and expands and strengthens ball 2019s presence in the growing brazilian market .
as a result of the transaction , latapack-ball became a variable interest entity ( vie ) under consolidation accounting guidelines with ball being identified as the primary beneficiary of the vie and consolidating the joint venture .

latapack-ball operates metal beverage packaging manufacturing plants in tres rios , jacarei and salvador , brazil and has been included in the metal beverage packaging , americas and asia , reporting segment .
in connection with the acquisition , the company recorded a gain of $ 81.8 million on its previously held equity investment in latapack-ball as a result of required purchase accounting .

the following table summarizes the final fair values of the latapack-ball assets acquired , liabilities assumed and non- controlling interest recognized , as well as the related investment in latapack s.a. , as of the acquisition date .
the valuation was based on market and income approaches. .

noncontrolling interests $ ( 132.9 ) the customer relationships were identified as an intangible asset by the company and assigned an estimated life of 13.4 years .
the intangible asset is being amortized on a straight-line basis .
neuman aluminum ( neuman ) in july 2010 , the company acquired neuman for approximately $ 62 million in cash .

neuman had sales of approximately $ 128 million in 2009 ( unaudited ) and is the leading north american manufacturer of aluminum slugs used to make extruded aerosol cans , beverage bottles , aluminum collapsible tubes and technical impact extrusions .
neuman operates two plants , one in the united states and one in canada , which employ approximately 180 people .

the acquisition of neuman is not material to the metal food and household products packaging , americas , segment , in which its results of operations have been included since the acquisition date .
guangdong jianlibao group co. , ltd ( jianlibao ) in june 2010 , the company acquired jianlibao 2019s 65 percent interest in a joint venture metal beverage can and end plant in sanshui ( foshan ) , prc .
ball has owned 35 percent of the joint venture plant since 1992 .

ball acquired the 65 percent interest for $ 86.9 million in cash ( net of cash acquired ) and assumed debt , and also entered into a long-term supply agreement with jianlibao and one of its affiliates .
the company recorded equity earnings of $ 24.1 million , which was composed of equity earnings and a gain realized on the fair value of ball 2019s previous 35 percent equity investment as a result of required purchase accounting .
the purchase accounting was completed during the third quarter of 2010 .

the acquisition of the remaining interest is not material to the metal beverage packaging , americas and asia , segment.

 |
| table | cash                         | $ 69.3
---------------------------- | ------------------
current assets               | 84.7
property plant and equipment | 265.9
goodwill                     | 100.2
intangible asset             | 52.8
current liabilities          | -53.2 ( 53.2 )
long-term liabilities        | -174.1 ( 174.1 )
net assets acquired          | $ 345.6
noncontrolling interests     | $ -132.9 ( 132.9 ) |


| _id | dd4b912fa |
| title |  |
| text | entergy new orleans , inc .
management's financial discussion and analysis 2007 compared to 2006 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges .
following is an analysis of the change in net revenue comparing 2007 to 2006 .
amount ( in millions ) .

the fuel recovery variance is due to the inclusion of grand gulf costs in fuel recoveries effective july 1 , 2006 .
in june 2006 , the city council approved the recovery of grand gulf costs through the fuel adjustment clause , without a corresponding change in base rates ( a significant portion of grand gulf costs was previously recovered through base rates ) .
the volume/weather variance is due to an increase in electricity usage in the service territory in 2007 compared to the same period in 2006 .

the first quarter 2006 was affected by customer losses following hurricane katrina .
entergy new orleans estimates that approximately 132000 electric customers and 86000 gas customers have returned and are taking service as of december 31 , 2007 , compared to approximately 95000 electric customers and 65000 gas customers as of december 31 , 2006 .
billed retail electricity usage increased a total of 540 gwh compared to the same period in 2006 , an increase of 14% ( 14 % ) .

the rider revenue variance is due primarily to a storm reserve rider effective march 2007 as a result of the city council's approval of a settlement agreement in october 2006 .
the approved storm reserve has been set to collect $ 75 million over a ten-year period through the rider and the funds will be held in a restricted escrow account .
the settlement agreement is discussed in note 2 to the financial statements .

the net wholesale revenue variance is due to more energy available for resale in 2006 due to the decrease in retail usage caused by customer losses following hurricane katrina .

in addition , 2006 revenue includes the sales into the wholesale market of entergy new orleans' share of the output of grand gulf , pursuant to city council approval of measures proposed by entergy new orleans to address the reduction in entergy new orleans' retail customer usage caused by hurricane katrina and to provide revenue support for the costs of entergy new orleans' share of grand other income statement variances 2008 compared to 2007 other operation and maintenance expenses decreased primarily

and maintenance expenses decreased primarily due to : a provision for storm-related bad debts of $ 11 million recorded in 2007 ; a decrease of $ 6.2 million in legal and professional fees ; a decrease of $ 3.4 million in employee benefit expenses ; and a decrease of $ 1.9 million in gas operations spending due to higher labor and material costs for reliability work in 2007.

 |
| table | | amount ( in millions )
--------------------- | ----------------------
2006 net revenue      | $ 192.2
fuel recovery         | 42.6
volume/weather        | 25.6
rider revenue         | 8.5
net wholesale revenue | -41.2 ( 41.2 )
other                 | 3.3
2007 net revenue      | $ 231.0 |


| _id | dd4b9b232 |
| title |  |
| text | interest-earning assets including unearned income in the accretion of fair value adjustments on discounts recognized on acquired or purchased loans is recognized based on the constant effective yield of the financial instrument .
the timing and amount of revenue that we recognize in any period is dependent on estimates , judgments , assumptions , and interpretation of contractual terms .

changes in these factors can have a significant impact on revenue recognized in any period due to changes in products , market conditions or industry norms .
residential and commercial mortgage servicing rights we elect to measure our residential mortgage servicing rights ( msrs ) at fair value .
this election was made to be consistent with our risk management strategy to hedge changes in the fair value of these assets as described below .

the fair value of residential msrs is estimated by using a cash flow valuation model which calculates the present value of estimated future net servicing cash flows , taking into consideration actual and expected mortgage loan prepayment rates , discount rates , servicing costs , and other economic factors which are determined based on current market conditions .

assumptions incorporated into the residential msrs valuation model reflect management 2019s best estimate of factors that a market participant would use in valuing the residential msrs .
although sales of residential msrs do occur , residential msrs do not trade in an active market with readily observable prices so the precise terms and conditions of sales are not available .

as a benchmark for the reasonableness of its residential msrs fair value , pnc obtains opinions of value from independent parties ( 201cbrokers 201d ) .
these brokers provided a range ( +/- 10 bps ) based upon their own discounted cash flow calculations of our portfolio that reflected conditions in the secondary market , and any recently executed servicing transactions .
pnc compares its internally-developed residential msrs value to the ranges of values received from the brokers .

if our residential msrs fair value falls outside of the brokers 2019 ranges , management will assess whether a valuation adjustment is warranted .
for 2011 and 2010 , pnc 2019s residential msrs value has not fallen outside of the brokers 2019 ranges .
we consider our residential msrs value to represent a reasonable estimate of fair value .
commercial msrs are purchased or originated when loans are sold with servicing retained .

commercial msrs do not trade in an active market with readily observable prices so the precise terms and conditions of sales are not available .
commercial msrs are initially recorded at fair value and are subsequently accounted for at the lower of amortized cost or fair value .
commercial msrs are periodically evaluated for impairment .

for purposes of impairment , the commercial mortgage servicing rights are stratified based on asset type , which characterizes the predominant risk of the underlying financial asset .
the fair value of commercial msrs is estimated by using an internal valuation model .
the model calculates the present value of estimated future net servicing cash flows considering estimates of servicing revenue and costs , discount rates and prepayment speeds .

pnc employs risk management strategies designed to protect the value of msrs from changes in interest rates and related market factors .
residential msrs values are economically hedged with securities and derivatives , including interest-rate swaps , options , and forward mortgage-backed and futures contracts .
as interest rates change , these financial instruments are expected to have changes in fair value negatively correlated to the change in fair value of the hedged residential msrs portfolio .

the hedge relationships are actively managed in response to changing market conditions over the life of the residential msrs assets .
commercial msrs are economically hedged at a macro level or with specific derivatives to protect against a significant decline in interest rates .
selecting appropriate financial instruments to economically hedge residential or commercial msrs requires significant management judgment to assess how mortgage rates and prepayment speeds could affect the future values of msrs .

hedging results can frequently be less predictable in the short term , but over longer periods of time are expected to protect the economic value of the msrs .
the fair value of residential and commercial msrs and significant inputs to the valuation model as of december 31 , 2011 are shown in the tables below .
the expected and actual rates of mortgage loan prepayments are significant factors driving the fair value .

management uses a third-party model to estimate future residential loan prepayments and internal proprietary models to estimate future commercial loan prepayments .
these models have been refined based on current market conditions .
future interest rates are another important factor in the valuation of msrs .
management utilizes market implied forward interest rates to estimate the future direction of mortgage and discount rates .

the forward rates utilized are derived from the current yield curve for u.s .
dollar interest rate swaps and are consistent with pricing of capital markets instruments .
changes in the shape and slope of the forward curve in future periods may result in volatility in the fair value estimate .
residential mortgage servicing rights dollars in millions december 31 december 31 .

weighted-average constant prepayment rate ( a ) 22.10% ( 22.10 % ) 12.61% ( 12.61 % ) weighted-average option adjusted spread 11.77% ( 11.77 % ) 12.18% ( 12.18 % ) ( a ) changes in weighted-average life and weighted-average constant prepayment rate reflect the cumulative impact of changes in rates , prepayment expectations and model changes .
the pnc financial services group , inc .
2013 form 10-k 65

 |
| table | dollars in millions                             | december 31 2011   | december 312010
----------------------------------------------- | ------------------ | ------------------
fair value                                      | $ 647              | $ 1033
weighted-average life ( in years ) ( a )        | 3.6                | 5.8
weighted-average constant prepayment rate ( a ) | 22.10% ( 22.10 % ) | 12.61% ( 12.61 % )
weighted-average option adjusted spread         | 11.77% ( 11.77 % ) | 12.18% ( 12.18 % ) |


| _id | dd4bb2a5e |
| title |  |
| text | vornado realty trust notes to consolidated financial statements ( continued ) 10 .
redeemable noncontrolling interests - continued redeemable noncontrolling interests on our consolidated balance sheets are recorded at the greater of their carrying amount or redemption value at the end of each reporting period .
changes in the value from period to period are charged to 201cadditional capital 201d in our consolidated statements of changes in equity .

below is a table summarizing the activity of redeemable noncontrolling interests .
( amounts in thousands ) .

as of december 31 , 2010 and 2009 , the aggregate redemption value of redeemable class a units was $ 1066974000 and $ 971628000 , respectively .
redeemable noncontrolling interests exclude our series g convertible preferred units and series d-13 cumulative redeemable preferred units , as they are accounted for as liabilities in accordance with asc 480 , distinguishing liabilities and equity , because of their possible settlement by issuing a variable number of vornado common shares .

accordingly the fair value of these units is included as a component of 201cother liabilities 201d on our consolidated balance sheets and aggregated $ 55097000 and $ 60271000 as of december 31 , 2010 and 2009 , respectively.

 |
| table | balance at december 31 2008                                        | $ 1177978
------------------------------------------------------------------ | ------------------
net income                                                         | 25120
distributions                                                      | -42451 ( 42451 )
conversion of class a units into common shares at redemption value | -90955 ( 90955 )
adjustment to carry redeemable class a units at redemption value   | 167049
other net                                                          | 14887
balance at december 31 2009                                        | $ 1251628
net income                                                         | 55228
distributions                                                      | -53515 ( 53515 )
conversion of class a units into common shares at redemption value | -126764 ( 126764 )
adjustment to carry redeemable class a units at redemption value   | 191826
redemption of series d-12 redeemable units                         | -13000 ( 13000 )
other net                                                          | 22571
balance at december 31 2010                                        | $ 1327974 |


| _id | dd4ba1ace |
| title |  |
| text | the income approach indicates value for an asset or liability based on the present value of cash flow projected to be generated over the remaining economic life of the asset or liability being measured .
both the amount and the duration of the cash flows are considered from a market participant perspective .

our estimates of market participant net cash flows considered historical and projected pricing , remaining developmental effort , operational performance including company- specific synergies , aftermarket retention , product life cycles , material and labor pricing , and other relevant customer , contractual and market factors .

where appropriate , the net cash flows are adjusted to reflect the uncertainties associated with the underlying assumptions , as well as the risk profile of the net cash flows utilized in the valuation .
the adjusted future cash flows are then discounted to present value using an appropriate discount rate .
projected cash flow is discounted at a required rate of return that reflects the relative risk of achieving the cash flows and the time value of money .

the market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets , liabilities , or a group of assets and liabilities .
valuation techniques consistent with the market approach often use market multiples derived from a set of comparables .

the cost approach , which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility , was used , as appropriate , for property , plant and equipment .
the cost to replace a given asset reflects the estimated reproduction or replacement cost , less an allowance for loss in value due to depreciation .
the purchase price allocation resulted in the recognition of $ 2.8 billion of goodwill , all of which is expected to be amortizable for tax purposes .

substantially all of the goodwill was assigned to our rms business .
the goodwill recognized is attributable to expected revenue synergies generated by the integration of our products and technologies with those of sikorsky , costs synergies resulting from the consolidation or elimination of certain functions , and intangible assets that do not qualify for separate recognition , such as the assembled workforce of sikorsky .

determining the fair value of assets acquired and liabilities assumed requires the exercise of significant judgments , including the amount and timing of expected future cash flows , long-term growth rates and discount rates .

the cash flows employed in the dcf analyses are based on our best estimate of future sales , earnings and cash flows after considering factors such as general market conditions , customer budgets , existing firm orders , expected future orders , contracts with suppliers , labor agreements , changes in working capital , long term business plans and recent operating performance .
use of different estimates and judgments could yield different results .

impact to 2015 financial results sikorsky 2019s 2015 financial results have been included in our consolidated financial results only for the period from the november 6 , 2015 acquisition date through december 31 , 2015 .
as a result , our consolidated financial results for the year ended december 31 , 2015 do not reflect a full year of sikorsky 2019s results .

from the november 6 , 2015 acquisition date through december 31 , 2015 , sikorsky generated net sales of approximately $ 400 million and operating loss of approximately $ 45 million , inclusive of intangible amortization and adjustments required to account for the acquisition .
we incurred approximately $ 38 million of non-recoverable transaction costs associated with the sikorsky acquisition in 2015 that were expensed as incurred .

these costs are included in other income , net on our consolidated statements of earnings .
we also incurred approximately $ 48 million in costs associated with issuing the $ 7.0 billion november 2015 notes used to repay all outstanding borrowings under the 364-day facility used to finance the acquisition .
the financing costs were recorded as a reduction of debt and will be amortized to interest expense over the term of the related debt .

supplemental pro forma financial information ( unaudited ) the following table presents summarized unaudited pro forma financial information as if sikorsky had been included in our financial results for the entire years in 2015 and 2014 ( in millions ) : .

the unaudited supplemental pro forma financial data above has been calculated after applying our accounting policies and adjusting the historical results of sikorsky with pro forma adjustments , net of tax , that assume the acquisition occurred on january 1 , 2014 .
significant pro forma adjustments include the recognition of additional amortization expense related to acquired intangible assets and additional interest expense related to the short-term debt used to finance the acquisition .
these

 |
| table | | 2015    | 2014
--------------------------------- | ------- | -------
net sales                         | $ 45366 | $ 47369
net earnings                      | 3534    | 3475
basic earnings per common share   | 11.39   | 10.97
diluted earnings per common share | 11.23   | 10.78 |


| _id | dd497354a |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements ( 3 ) consists of customer-related intangibles of approximately $ 15.5 million and network location intangibles of approximately $ 19.8 million .
the customer-related intangibles and network location intangibles are being amortized on a straight-line basis over periods of up to 20 years .
( 4 ) 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 .
uganda acquisition 2014on december 8 , 2011 , the company entered into a definitive agreement with mtn group to establish a joint venture in uganda .

the joint venture is controlled by a holding company of which a wholly owned subsidiary of the company ( the 201catc uganda subsidiary 201d ) holds a 51% ( 51 % ) interest and a wholly owned subsidiary of mtn group ( the 201cmtn uganda subsidiary 201d ) holds a 49% ( 49 % ) interest .
the joint venture is managed and controlled by the company and owns a tower operations company in uganda .

pursuant to the agreement , the joint venture agreed to purchase a total of up to 1000 existing communications sites from mtn group 2019s operating subsidiary in uganda , subject to customary closing conditions .
on june 29 , 2012 , the joint venture acquired 962 communications sites for an aggregate purchase price of $ 171.5 million , subject to post-closing adjustments .
the aggregate purchase price was subsequently increased to $ 173.2 million , subject to future post-closing adjustments .

under the terms of the purchase agreement , legal title to certain of these communications sites will be transferred upon fulfillment of certain conditions by mtn group .
prior to the fulfillment of these conditions , the company will operate and maintain control of these communications sites , and accordingly , reflect these sites in the allocation of purchase price and the consolidated operating results .

the following table summarizes the preliminary allocation of the aggregate purchase price consideration paid and the amounts of assets acquired and liabilities assumed based upon their estimated fair value at the date of acquisition ( in thousands ) : preliminary purchase price allocation .

( 1 ) consists of customer-related intangibles of approximately $ 36.5 million and network location intangibles of approximately $ 27.0 million .
the customer-related intangibles and network location intangibles are being amortized on a straight-line basis over periods of up to 20 years .
( 2 ) the company expects that the goodwill recorded will be not be deductible for tax purposes .
the goodwill was allocated to the company 2019s international rental and management segment .

germany acquisition 2014on november 14 , 2012 , the company entered into a definitive agreement to purchase communications sites from e-plus mobilfunk gmbh & co .
kg .
on december 4 , 2012 , the company completed the purchase of 2031 communications sites , for an aggregate purchase price of $ 525.7 million.

 |
| table | | preliminary purchase price allocation
--------------------------------- | -------------------------------------
non-current assets                | $ 2258
property and equipment            | 102366
intangible assets ( 1 )           | 63500
other non-current liabilities     | -7528 ( 7528 )
fair value of net assets acquired | $ 160596
goodwill ( 2 )                    | 12564 |


| _id | dd498cefa |
| title |  |
| text | notes to the consolidated financial statements unrealized currency translation adjustments related to translation of foreign denominated balance sheets are not presented net of tax given that no deferred u.s .
income taxes have been provided on undistributed earnings of non- u.s .
subsidiaries because they are deemed to be reinvested for an indefinite period of time .

the tax ( cost ) benefit related to unrealized currency translation adjustments other than translation of foreign denominated balance sheets , for the years ended december 31 , 2011 , 2010 and 2009 was $ ( 7 ) million , $ 8 million and $ 62 million , respectively .
the tax benefit related to the adjustment for pension and other postretirement benefits for the years ended december 31 , 2011 , 2010 and 2009 was $ 98 million , $ 65 million and $ 18 million , respectively .

the cumulative tax benefit related to the adjustment for pension and other postretirement benefits at december 31 , 2011 and 2010 was $ 990 million and $ 889 million , respectively .
the tax ( cost ) benefit related to the change in the unrealized gain ( loss ) on marketable securities for the years ended december 31 , 2011 , 2010 and 2009 was $ ( 0.2 ) million , $ 0.6 million and $ 0.1 million , respectively .

the tax benefit ( cost ) related to the change in the unrealized gain ( loss ) on derivatives for the years ended december 31 , 2011 , 2010 and 2009 was $ 19 million , $ 1 million and $ ( 16 ) million , respectively .
18 .
employee savings plan ppg 2019s employee savings plan ( 201csavings plan 201d ) covers substantially all u.s .
employees .
the company makes matching contributions to the savings plan based upon participants 2019 savings , subject to certain limitations .

for most participants not covered by a collective bargaining agreement , company-matching contributions are established each year at the discretion of the company and are applied to a maximum of 6% ( 6 % ) of eligible participant compensation .
for those participants whose employment is covered by a collective bargaining agreement , the level of company-matching contribution , if any , is determined by the relevant collective bargaining agreement .

the company-matching contribution was 100% ( 100 % ) for the first two months of 2009 .
the company-matching contribution was suspended from march 2009 through june 2010 as a cost savings measure in recognition of the adverse impact of the global recession .
effective july 1 , 2010 , the company match was reinstated at 50% ( 50 % ) on the first 6% ( 6 % ) of compensation contributed for most employees eligible for the company-matching contribution feature .

this included the union represented employees in accordance with their collective bargaining agreements .
on january 1 , 2011 , the company match was increased to 75% ( 75 % ) on the first 6% ( 6 % ) of compensation contributed by these eligible employees .
compensation expense and cash contributions related to the company match of participant contributions to the savings plan for 2011 , 2010 and 2009 totaled $ 26 million , $ 9 million and $ 7 million , respectively .

a portion of the savings plan qualifies under the internal revenue code as an employee stock ownership plan .
as a result , the tax deductible dividends on ppg shares held by the savings plan were $ 20 million , $ 24 million and $ 28 million for 2011 , 2010 and 2009 , respectively .
19 .
other earnings ( millions ) 2011 2010 2009 .

total $ 177 $ 180 $ 150 20 .
stock-based compensation the company 2019s stock-based compensation includes stock options , restricted stock units ( 201crsus 201d ) and grants of contingent shares that are earned based on achieving targeted levels of total shareholder return .
all current grants of stock options , rsus and contingent shares are made under the ppg industries , inc .

amended and restated omnibus incentive plan ( 201cppg amended omnibus plan 201d ) , which was amended and restated effective april 21 , 2011 .
shares available for future grants under the ppg amended omnibus plan were 9.7 million as of december 31 , 2011 .
total stock-based compensation cost was $ 36 million , $ 52 million and $ 34 million in 2011 , 2010 and 2009 , respectively .

the total income tax benefit recognized in the accompanying consolidated statement of income related to the stock-based compensation was $ 13 million , $ 18 million and $ 12 million in 2011 , 2010 and 2009 , respectively .
stock options ppg has outstanding stock option awards that have been granted under two stock option plans : the ppg industries , inc .
stock plan ( 201cppg stock plan 201d ) and the ppg amended omnibus plan .

under the ppg amended omnibus plan and the ppg stock plan , certain employees of the company have been granted options to purchase shares of common stock at prices equal to the fair market value of the shares on the date the options were granted .
the options are generally exercisable beginning from six to 48 months after being granted and have a maximum term of 10 years .
upon exercise of a stock option , shares of company stock are issued from treasury stock .

the ppg stock plan includes a restored option provision for options originally granted prior to january 1 , 2003 that 68 2011 ppg annual report and form 10-k

 |
| table | ( millions )                                                       | 2011  | 2010  | 2009
------------------------------------------------------------------ | ----- | ----- | --------
royalty income                                                     | 55    | 58    | 45
share of net earnings ( loss ) of equity affiliates ( see note 5 ) | 37    | 45    | -5 ( 5 )
gain on sale of assets                                             | 12    | 8     | 36
other                                                              | 73    | 69    | 74
total                                                              | $ 177 | $ 180 | $ 150 |


| _id | dd4be1020 |
| title |  |
| text | fixed-price purchase options available in the leases could potentially provide benefits to us ; however , these benefits are not expected to be significant .
we maintain and operate the assets based on contractual obligations within the lease arrangements , which set specific guidelines consistent within the railroad industry .
as such , we have no control over activities that could materially impact the fair value of the leased assets .

we do not hold the power to direct the activities of the vies and , therefore , do not control the ongoing activities that have a significant impact on the economic performance of the vies .

additionally , we do not have the obligation to absorb losses of the vies or the right to receive benefits of the vies that could potentially be significant to the we are not considered to be the primary beneficiary and do not consolidate these vies because our actions and decisions do not have the most significant effect on the vie 2019s performance and our fixed-price purchase price options are not considered to be potentially significant to the vie 2019s .

the future minimum lease payments associated with the vie leases totaled $ 3.6 billion as of december 31 , 2012 .
16 .
leases we lease certain locomotives , freight cars , and other property .
the consolidated statements of financial position as of december 31 , 2012 and 2011 included $ 2467 million , net of $ 966 million of accumulated depreciation , and $ 2458 million , net of $ 915 million of accumulated depreciation , respectively , for properties held under capital leases .

a charge to income resulting from the depreciation for assets held under capital leases is included within depreciation expense in our consolidated statements of income .
future minimum lease payments for operating and capital leases with initial or remaining non-cancelable lease terms in excess of one year as of december 31 , 2012 , were as follows : millions operating leases capital leases .

approximately 94% ( 94 % ) of capital lease payments relate to locomotives .
rent expense for operating leases with terms exceeding one month was $ 631 million in 2012 , $ 637 million in 2011 , and $ 624 million in 2010 .
when cash rental payments are not made on a straight-line basis , we recognize variable rental expense on a straight-line basis over the lease term .
contingent rentals and sub-rentals are not significant .
17 .

17 .
commitments and contingencies asserted and unasserted claims 2013 various claims and lawsuits are pending against us and certain of our subsidiaries .
we cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations , financial condition , or liquidity ; however , to the extent possible , where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated , we have recorded a liability .

we do not expect that any known lawsuits , claims , environmental costs , commitments , contingent liabilities , or guarantees will have a material adverse effect on our consolidated results of operations , financial condition , or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters .

personal injury 2013 the cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year .
we use an actuarial analysis to measure the expense and liability , including unasserted claims .
the federal employers 2019 liability act ( fela ) governs compensation for work-related accidents .
under fela , damages

 |
| table | millions                               | operatingleases | capitalleases
-------------------------------------- | --------------- | -------------
2013                                   | $ 525           | $ 282
2014                                   | 466             | 265
2015                                   | 410             | 253
2016                                   | 375             | 232
2017                                   | 339             | 243
later years                            | 2126            | 1166
total minimum leasepayments            | $ 4241          | $ 2441
amount representing interest           | n/a             | -593 ( 593 )
present value of minimum leasepayments | n/a             | $ 1848 |