| _id | dd4beffc6 |
| title |  |
| text | blackrock information related to our equity investment in blackrock follows: .

carrying value of pnc 2019s investment in blackrock ( in billions ) ( b ) $ 5.8 $ 4.2 ( a ) includes pnc 2019s share of blackrock 2019s reported gaap earnings and additional income taxes on those earnings incurred by pnc .
( b ) at december 31 .
blackrock/barclays global investors transaction on december 1 , 2009 , blackrock acquired bgi from barclays bank plc in exchange for approximately $ 6.65 billion in cash and 37566771 shares of blackrock common and participating preferred stock .

in connection with the bgi transaction , blackrock entered into amendments to stockholder agreements with pnc and its other major shareholder .
these amendments , which changed certain shareholder rights , including composition of the blackrock board of directors and share transfer restrictions , became effective upon closing of the bgi transaction .

also in connection with the bgi transaction , blackrock entered into a stock purchase agreement with pnc in which we purchased 3556188 shares of blackrock 2019s series d preferred stock at a price of $ 140.60 per share , or $ 500 million , to partially finance the transaction .
on january 31 , 2010 , the series d preferred stock was converted to series b preferred stock .

upon closing of the bgi transaction , the carrying value of our investment in blackrock increased significantly , reflecting our portion of the increase in blackrock 2019s equity resulting from the value of blackrock shares issued in connection with their acquisition of bgi .
pnc recognized this increase in value as a $ 1.076 billion pretax gain in the fourth quarter of 2009 .
at december 31 , 2009 , our percentage ownership of blackrock common stock was approximately 35% ( 35 % ) .

blackrock ltip programs and exchange agreements pnc 2019s noninterest income included pretax gains of $ 98 million in 2009 and $ 243 million in 2008 related to our blackrock ltip shares obligation .
these gains represented the mark-to-market adjustment related to our remaining blackrock ltip common shares obligation and resulted from the decrease in the market value of blackrock common shares in those periods .

as previously reported , pnc entered into an exchange agreement with blackrock on december 26 , 2008 .
the transactions that resulted from this agreement restructured pnc 2019s ownership of blackrock equity without altering , to any meaningful extent , pnc 2019s economic interest in blackrock .
pnc continues to be subject to the limitations on its voting rights in its existing agreements with blackrock .

also on december 26 , 2008 , blackrock entered into an exchange agreement with merrill lynch in anticipation of the consummation of the merger of bank of america corporation and merrill lynch that occurred on january 1 , 2009 .
the pnc and merrill lynch exchange agreements restructured pnc 2019s and merrill lynch 2019s respective ownership of blackrock common and preferred equity .
the exchange contemplated by these agreements was completed on february 27 , 2009 .

on that date , pnc 2019s obligation to deliver blackrock common shares was replaced with an obligation to deliver shares of blackrock 2019s new series c preferred stock .
pnc acquired 2.9 million shares of series c preferred stock from blackrock in exchange for common shares on that same date .

pnc accounts for these preferred shares at fair value , which offsets the impact of marking-to-market the obligation to deliver these shares to blackrock as we aligned the fair value marks on this asset and liability .
the fair value of the blackrock series c preferred stock is included on our consolidated balance sheet in other assets .

additional information regarding the valuation of the blackrock series c preferred stock is included in note 8 fair value in the notes to consolidated financial statements included in item 8 of this report .
pnc accounts for its remaining investment in blackrock under the equity method of accounting , with its share of blackrock 2019s earnings reduced primarily due to the exchange of blackrock common stock for blackrock series c preferred stock .

the series c preferred stock is not taken into consideration in determining pnc 2019s share of blackrock earnings under the equity method .
pnc 2019s percentage ownership of blackrock common stock increased as a result of the substantial exchange of merrill lynch 2019s blackrock common stock for blackrock preferred stock .

as a result of the blackrock preferred stock held by merrill lynch and the new blackrock preferred stock issued to merrill lynch and pnc under the exchange agreements , pnc 2019s share of blackrock common stock is higher than its overall share of blackrock 2019s equity and earnings .
the transactions related to the exchange agreements do not affect our right to receive dividends declared by blackrock.

 |
| table | | 2009         | 2008
------------------------------------------------------------------------- | ------------ | ------------
business segment earnings ( in millions ) ( a )                           | $ 207        | $ 207
pnc 2019s share of blackrock earnings ( b )                               | 23% ( 23 % ) | 33% ( 33 % )
carrying value of pnc 2019s investment in blackrock ( in billions ) ( b ) | $ 5.8        | $ 4.2 |


| _id | dd49872ac |
| title |  |
| text | supplementary information on oil and gas producing activities ( unaudited ) c o n t i n u e d summary of changes in standardized measure of discounted future net cash flows relating to proved oil and gas reserves ( in millions ) 2007 2006 2005 sales and transfers of oil and gas produced , net of production , transportation and administrative costs $ ( 4887 ) $ ( 5312 ) $ ( 3754 ) net changes in prices and production , transportation and administrative costs related to future production 12845 ( 1342 ) 6648 .

 |
| table | ( in millions )                                                                                | 2007             | 2006             | 2005
--------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
sales and transfers of oil and gas produced net of production transportation and administrative costs     | $ -4887 ( 4887 ) | $ -5312 ( 5312 ) | $ -3754 ( 3754 )
net changes in prices and production transportation and administrative costs related to future production | 12845            | -1342 ( 1342 )   | 6648
extensions discoveries and improved recovery less related costs                                           | 1816             | 1290             | 700
development costs incurred during the period                                                              | 1654             | 1251             | 1030
changes in estimated future development costs                                                             | -1727 ( 1727 )   | -527 ( 527 )     | -552 ( 552 )
revisions of previous quantity estimates                                                                  | 290              | 1319             | 820
net changes in purchases and sales of minerals in place                                                   | 23               | 30               | 4557
accretion of discount                                                                                | 1726             | 1882             | 1124
net change in income taxes                                                                                | -6751 ( 6751 )   | -660 ( 660 )     | -6694 ( 6694 )
timing and other                                                                                | -12 ( 12 )       | -14 ( 14 )       | 307
net change for the year                                                                                | 4977             | -2083 ( 2083 )   | 4186
beginning of year                                                                                | 8518             | 10601            | 6415
end of year                                                                                | $ 13495          | $ 8518           | $ 10601
net change for the year from discontinued operations                                                      | $ 2013           | $ -216 ( 216 )   | $ 162 |


| _id | dd4bb5c2c |
| title |  |
| text | derivative instruments see quantitative and qualitative disclosures about market risk for a discussion of derivative instruments and associated market risk .
dividends to stockholders dividends of $ 0.92 per common share or $ 637 million were paid during 2007 .
on january 27 , 2008 , our board of directors declared a dividend of $ 0.24 cents per share on our common stock , payable march 10 , 2008 , to stockholders of record at the close of business on february 20 , 2008 .

liquidity and capital resources our main sources of liquidity and capital resources are internally generated cash flow from operations , committed credit facilities and access to both the debt and equity capital markets .
our ability to access the debt capital market is supported by our investment grade credit ratings .
our senior unsecured debt is currently rated investment grade by standard and poor 2019s corporation , moody 2019s investor services , inc .

and fitch ratings with ratings of bbb+ , baa1 , and bbb+ .
these ratings were reaffirmed in july 2007 after the western acquisition was announced .

because of the alternatives available to us , including internally generated cash flow and potential asset sales , we believe that our short-term and long-term liquidity is adequate to fund operations , including our capital spending programs , stock repurchase program , repayment of debt maturities and any amounts that ultimately may be paid in connection with contingencies .
we have a committed $ 3.0 billion revolving credit facility with third-party financial institutions terminating in may 2012 .

at december 31 , 2007 , there were no borrowings against this facility and we had no commercial paper outstanding under our u.s .
commercial paper program that is backed by this revolving credit facility .
on july 26 , 2007 , we filed a universal shelf registration statement with the securities and exchange commission , under which we , as a well-known seasoned issuer , have the ability to issue and sell an indeterminate amount of various types of debt and equity securities .

our cash-adjusted debt-to-capital ratio ( total debt-minus-cash to total debt-plus-equity-minus-cash ) was 22 percent at december 31 , 2007 , compared to six percent at year-end 2006 as shown below .
this includes $ 498 million of debt that is serviced by united states steel .
( dollars in millions ) 2007 2006 .

( a ) following the issuance of the $ 1.0 billion of revenue bonds by the parish of st .
john the baptist , the proceeds were trusteed and will be disbursed to us upon our request for reimbursement of expenditures related to the garyville refinery expansion .
the trusteed funds are reflected as other noncurrent assets in the accompanying consolidated balance sheet as of december 31 , 2007.

 |
| table | ( dollars in millions )                 | 2007         | 2006
--------------------------------------- | ------------ | ----------
long-term debt due within one year      | $ 1131       | $ 471
long-term debt                          | 6084         | 3061
total debt                              | $ 7215       | $ 3532
cash                                    | $ 1199       | $ 2585
trusteed funds from revenue bonds ( a ) | $ 744        | $ 2013
equity                                  | $ 19223      | $ 14607
calculation:                            |              |
total debt                              | $ 7215       | $ 3532
minus cash                              | 1199         | 2585
minus trusteed funds from revenue bonds | 744          | 2013
total debt minus cash                   | 5272         | 947
total debt                              | 7215         | 3532
plus equity                             | 19223        | 14607
minus cash                              | 1199         | 2585
minus trusteed funds from revenue bonds | 744          | 2013
total debt plus equity minus cash       | $ 24495      | $ 15554
cash-adjusted debt-to-capital ratio     | 22% ( 22 % ) | 6% ( 6 % ) |


| _id | dd4979f76 |
| title |  |
| text | backlog applied manufactures systems to meet demand represented by order backlog and customer commitments .
backlog consists of : ( 1 ) orders for which written authorizations have been accepted and assigned shipment dates are within the next 12 months , or shipment has occurred but revenue has not been recognized ; and ( 2 ) contractual service revenue and maintenance fees to be earned within the next 12 months .

backlog by reportable segment as of october 26 , 2014 and october 27 , 2013 was as follows : 2014 2013 ( in millions , except percentages ) .

applied 2019s backlog on any particular date is not necessarily indicative of actual sales for any future periods , due to the potential for customer changes in delivery schedules or cancellation of orders .
customers may delay delivery of products or cancel orders prior to shipment , subject to possible cancellation penalties .
delays in delivery schedules and/or a reduction of backlog during any particular period could have a material adverse effect on applied 2019s business and results of operations .

manufacturing , raw materials and supplies applied 2019s manufacturing activities consist primarily of assembly , test and integration of various proprietary and commercial parts , components and subassemblies ( collectively , parts ) that are used to manufacture systems .

applied has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries , including the united states , europe , israel , singapore , taiwan , and other countries in asia , and assembly of some systems is completed at customer sites .
applied uses numerous vendors , including contract manufacturers , to supply parts and assembly services for the manufacture and support of its products .

although applied makes reasonable efforts to assure that parts are available from multiple qualified suppliers , this is not always possible .
accordingly , some key parts may be obtained from only a single supplier or a limited group of suppliers .

applied seeks to reduce costs and to lower the risks of manufacturing and service interruptions by : ( 1 ) selecting and qualifying alternate suppliers for key parts ; ( 2 ) monitoring the financial condition of key suppliers ; ( 3 ) maintaining appropriate inventories of key parts ; ( 4 ) qualifying new parts on a timely basis ; and ( 5 ) locating certain manufacturing operations in close proximity to suppliers and customers .

research , development and engineering applied 2019s long-term growth strategy requires continued development of new products , including products that enable expansion into new markets .

the company 2019s significant investment in research , development and engineering ( rd&e ) has generally enabled it to deliver new products and technologies before the emergence of strong demand , thus allowing customers to incorporate these products into their manufacturing plans at an early stage in the technology selection cycle .
applied works closely with its global customers to design systems and processes that meet their planned technical and production requirements .

product development and engineering organizations are located primarily in the united states , as well as in europe , israel , taiwan , and china .
in addition , applied outsources certain rd&e activities , some of which are performed outside the united states , primarily in india and singapore .
process support and customer demonstration laboratories are located in the united states , china , taiwan , europe , and israel .

applied 2019s investments in rd&e for product development and engineering programs to create or improve products and technologies over the last three years were as follows : $ 1.4 billion ( 16 percent of net sales ) in fiscal 2014 , $ 1.3 billion ( 18 percent of net sales ) in fiscal 2013 , and $ 1.2 billion ( 14 percent of net sales ) in fiscal 2012 .
applied has spent an average of 13 percent of net sales in rd&e over the last five years .

in addition to rd&e for specific product technologies , applied maintains ongoing programs for automation control systems , materials research , and environmental control that are applicable to its products.

 |
| table | | 2014   | 2013           |        | ( in millions except percentages )
---------------------------------- | ------ | -------------- | ------ | ----------------------------------
silicon systems group              | $ 1400 | 48% ( 48 % )   | $ 1295 | 55% ( 55 % )
applied global services            | 775    | 27% ( 27 % )   | 591    | 25% ( 25 % )
display                            | 593    | 20% ( 20 % )   | 361    | 15% ( 15 % )
energy and environmental solutions | 149    | 5% ( 5 % )     | 125    | 5% ( 5 % )
total                              | $ 2917 | 100% ( 100 % ) | $ 2372 | 100% ( 100 % ) |


| _id | dd4bb216c |
| title |  |
| text | f0b7 financial expectations 2013 we are cautious about the economic environment , but , assuming that industrial production grows approximately 3% ( 3 % ) as projected , volume should exceed 2013 levels .
even with no volume growth , we expect earnings to exceed 2013 earnings , generated by core pricing gains , on-going network improvements and productivity initiatives .

we expect that free cash flow for 2014 will be lower than 2013 as higher cash from operations will be more than offset by additional cash of approximately $ 400 million that will be used to pay income taxes that were previously deferred through bonus depreciation , increased capital spend and higher dividend payments .
results of operations operating revenues millions 2013 2012 2011 % (  % ) change 2013 v 2012 % (  % ) change 2012 v 2011 .

we generate freight revenues by transporting freight or other materials from our six commodity groups .
freight revenues vary with volume ( carloads ) and arc .
changes in price , traffic mix and fuel surcharges drive arc .
we provide some of our customers with contractual incentives for meeting or exceeding specified cumulative volumes or shipping to and from specific locations , which we record as reductions to freight revenues based on the actual or projected future shipments .

we recognize freight revenues as shipments move from origin to destination .
we allocate freight revenues between reporting periods based on the relative transit time in each reporting period and recognize expenses as we incur them .
other revenues include revenues earned by our subsidiaries , revenues from our commuter rail operations , and accessorial revenues , which we earn when customers retain equipment owned or controlled by us or when we perform additional services such as switching or storage .

we recognize other revenues as we perform services or meet contractual obligations .
freight revenues from five of our six commodity groups increased during 2013 compared to 2012 .
revenue from agricultural products was down slightly compared to 2012 .
arc increased 5% ( 5 % ) , driven by core pricing gains , shifts in business mix and an automotive logistics management arrangement .

volume was essentially flat year over year as growth in automotives , frac sand , crude oil and domestic intermodal offset declines in coal , international intermodal and grain shipments .
freight revenues from four of our six commodity groups increased during 2012 compared to 2011 .
revenues from coal and agricultural products declined during the year .

our franchise diversity allowed us to take advantage of growth from shale-related markets ( crude oil , frac sand and pipe ) and strong automotive manufacturing , which offset volume declines from coal and agricultural products .
arc increased 7% ( 7 % ) , driven by core pricing gains and higher fuel cost recoveries .

improved fuel recovery provisions and higher fuel prices , including the lag effect of our programs ( surcharges trail fluctuations in fuel price by approximately two months ) , combined to increase revenues from fuel surcharges .
our fuel surcharge programs generated freight revenues of $ 2.6 billion , $ 2.6 billion , and $ 2.2 billion in 2013 , 2012 , and 2011 , respectively .

fuel surcharge in 2013 was essentially flat versus 2012 as lower fuel price offset improved fuel recovery provisions and the lag effect of our programs ( surcharges trail fluctuations in fuel price by approximately two months ) .
rising fuel prices and more shipments subject to fuel surcharges drove the increase from 2011 to 2012 .

in 2013 , other revenue increased from 2012 due primarily to miscellaneous contract revenue and higher revenues at our subsidiaries that broker intermodal and automotive services .
in 2012 , other revenues increased from 2011 due primarily to higher revenues at our subsidiaries that broker intermodal and automotive services .
assessorial revenues also increased in 2012 due to container revenue related to an increase in intermodal shipments.

 |
| table | millions         | 2013    | 2012    | 2011    | % (  % ) change 2013 v 2012 | % (  % ) change 2012 v 2011
---------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
freight revenues | $ 20684 | $ 19686 | $ 18508 | 5% ( 5 % )                  | 6% ( 6 % )
other revenues   | 1279    | 1240    | 1049    | 3                           | 18
total            | $ 21963 | $ 20926 | $ 19557 | 5% ( 5 % )                  | 7% ( 7 % ) |


| _id | dd4b87a02 |
| title |  |
| text | entergy mississippi , inc .
management's financial discussion and analysis results of operations net income 2008 compared to 2007 net income decreased $ 12.4 million primarily due to higher other operation and maintenance expenses , lower other income , and higher depreciation and amortization expenses , partially offset by higher net revenue .

2007 compared to 2006 net income increased $ 19.8 million primarily due to higher net revenue , lower other operation and maintenance expenses , higher other income , and lower interest expense , partially offset by higher depreciation and amortization expenses .
net revenue 2008 compared to 2007 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 2008 to 2007 .
amount ( in millions ) .

the attala costs variance is primarily due to an increase in the attala power plant costs that are recovered through the power management rider .
the net income effect of this recovery in limited to a portion representing an allowed return on equity with the remainder offset by attala power plant costs in other operation and maintenance expenses , depreciation expenses , and taxes other than income taxes .

the recovery of attala power plant costs is discussed further in "liquidity and capital resources - uses of capital" below .
the rider revenue variance is the result of a storm damage rider that became effective in october 2007 .
the establishment of this rider results in an increase in rider revenue and a corresponding increase in other operation and maintenance expense for the storm reserve with no effect on net income .

the base revenue variance is primarily due to a formula rate plan increase effective july 2007 .
the formula rate plan filing is discussed further in "state and local rate regulation" below .
the reserve equalization variance is primarily due to changes in the entergy system generation mix compared to the same period in 2007.

 |
| table | | amount ( in millions )
--------------------- | ----------------------
2007 net revenue      | $ 486.9
attala costs          | 9.9
rider revenue         | 6.0
base revenue          | 5.1
reserve equalization  | -2.4 ( 2.4 )
net wholesale revenue | -4.0 ( 4.0 )
other                 | -2.7 ( 2.7 )
2008 net revenue      | $ 498.8 |


| _id | dd4b9c790 |
| title |  |
| text | when the likelihood of clawback is considered mathematically improbable .
the company records a deferred carried interest liability to the extent it receives cash or capital allocations related to carried interest prior to meeting the revenue recognition criteria .

at december 31 , 2017 and 2016 , the company had $ 219 million and $ 152 million , respectively , of deferred carried interest recorded in other liabilities/other liabilities of consolidated vies on the consolidated statements of financial condition .
a portion of the deferred carried interest liability will be paid to certain employees .
the ultimate timing of the recognition of performance fee revenue , if any , for these products is unknown .

the following table presents changes in the deferred carried interest liability ( including the portion related to consolidated vies ) for 2017 and 2016: .

for 2017 , 2016 and 2015 , performance fee revenue ( which included recognized carried interest ) totaled $ 594 million , $ 295 million and $ 621 million , respectively .
fees earned for technology and risk management revenue are recorded as services are performed and are generally determined using the value of positions on the aladdin platform or on a fixed-rate basis .

for 2017 , 2016 and 2016 , technology and risk management revenue totaled $ 677 million , $ 595 million and $ 528 million , respectively .

adjustments to revenue arising from initial estimates recorded historically have been immaterial since the majority of blackrock 2019s investment advisory and administration revenue is calculated based on aum and since the company does not record performance fee revenue until performance thresholds have been exceeded and the likelihood of clawback is mathematically improbable .
accounting developments recent accounting pronouncements not yet adopted .
revenue from contracts with customers .

revenue from contracts with customers .
in may 2014 , the financial accounting standards board ( 201cfasb 201d ) issued accounting standards update ( 201casu 201d ) 2014-09 , revenue from contracts with customers ( 201casu 2014-09 201d ) .
asu 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance , including industry-specific guidance .

the guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements .
the key changes in the standard that impact the company 2019s revenue recognition relate to the presentation of certain revenue contracts and associated contract costs .

the most significant of these changes relates to the presentation of certain distribution costs , which are currently presented net against revenues ( contra-revenue ) and will be presented as an expense on a gross basis .
the company adopted asu 2014-09 effective january 1 , 2018 on a full retrospective basis , which will require 2016 and 2017 to be restated in future filings .
the cumulative effect adjustment to the 2016 opening retained earnings was not material .

the company currently expects the net gross up to revenue to be approximately $ 1 billion with a corresponding gross up to expense for both 2016 and 2017 .
consequently , the company expects its gaap operating margin to decline upon adoption due to the gross up of revenue .
however , no material impact is expected on the company 2019s as adjusted operating margin .

for accounting pronouncements that the company adopted during the year ended december 31 , 2017 and for additional recent accounting pronouncements not yet adopted , see note 2 , significant accounting policies , in the consolidated financial statements contained in part ii , item 8 of this filing .
item 7a .
quantitative and qualitative disclosures about market risk aum market price risk .

blackrock 2019s investment advisory and administration fees are primarily comprised of fees based on a percentage of the value of aum and , in some cases , performance fees expressed as a percentage of the returns realized on aum .
at december 31 , 2017 , the majority of the company 2019s investment advisory and administration fees were based on average or period end aum of the applicable investment funds or separate accounts .

movements in equity market prices , interest rates/credit spreads , foreign exchange rates or all three could cause the value of aum to decline , which would result in lower investment advisory and administration fees .
corporate investments portfolio risks .

corporate investments portfolio risks .
as a leading investment management firm , blackrock devotes significant resources across all of its operations to identifying , measuring , monitoring , managing and analyzing market and operating risks , including the management and oversight of its own investment portfolio .

the board of directors of the company has adopted guidelines for the review of investments to be made by the company , requiring , among other things , that investments be reviewed by certain senior officers of the company , and that certain investments may be referred to the audit committee or the board of directors , depending on the circumstances , for approval .

in the normal course of its business , blackrock is exposed to equity market price risk , interest rate/credit spread risk and foreign exchange rate risk associated with its corporate investments .
blackrock has investments primarily in sponsored investment products that invest in a variety of asset classes , including real assets , private equity and hedge funds .

investments generally are made for co-investment purposes , to establish a performance track record , to hedge exposure to certain deferred compensation plans or for regulatory purposes .
currently , the company has a seed capital hedging program in which it enters into swaps to hedge market and interest rate exposure to certain investments .
at december 31 , 2017 , the company had outstanding total return swaps with an aggregate notional value of approximately $ 587 million .

at december 31 , 2017 , there were no outstanding interest rate swaps.

 |
| table | ( in millions )                                     | 2017       | 2016
--------------------------------------------------- | ---------- | ----------
beginning balance                                   | $ 152      | $ 143
net increase ( decrease ) in unrealized allocations | 75         | 37
performance fee revenue recognized                  | -21 ( 21 ) | -28 ( 28 )
acquisition                                         | 13         | 2014
ending balance                                      | $ 219      | $ 152 |


| _id | dd4c1e5c4 |
| title |  |
| text | zimmer holdings , inc .
2013 form 10-k annual report notes to consolidated financial statements ( continued ) state income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return .
the state impact of any federal changes generally remains subject to examination by various states for a period of up to one year after formal notification to the states .

we have various state income tax returns in the process of examination , administrative appeals or litigation .
our tax returns are currently under examination in various foreign jurisdictions .
foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years .

years still open to examination by foreign tax authorities in major jurisdictions include : australia ( 2009 onward ) , canada ( 2007 onward ) , france ( 2011 onward ) , germany ( 2009 onward ) , ireland ( 2009 onward ) , italy ( 2010 onward ) , japan ( 2010 onward ) , korea ( 2008 onward ) , puerto rico ( 2008 onward ) , switzerland ( 2012 onward ) , and the united kingdom ( 2012 onward ) .
16 .

16 .
capital stock and earnings per share we are authorized to issue 250 million shares of preferred stock , none of which were issued or outstanding as of december 31 , 2013 .
the numerator for both basic and diluted earnings per share is net earnings available to common stockholders .
the denominator for basic earnings per share is the weighted average number of common shares outstanding during the period .

the denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards .
the following is a reconciliation of weighted average shares for the basic and diluted share computations ( in millions ) : .

weighted average shares outstanding for basic net earnings per share 169.6 174.9 187.6 effect of dilutive stock options and other equity awards 2.2 1.1 1.1 weighted average shares outstanding for diluted net earnings per share 171.8 176.0 188.7 for the year ended december 31 , 2013 , an average of 3.1 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the

were greater than the average market price of the common stock .

for the years ended december 31 , 2012 and 2011 , an average of 11.9 million and 13.2 million options , respectively , were not included .
during 2013 , we repurchased 9.1 million shares of our common stock at an average price of $ 78.88 per share for a total cash outlay of $ 719.0 million , including commissions .
effective january 1 , 2014 , we have a new share repurchase program that authorizes purchases of up to $ 1.0 billion with no expiration date .

no further purchases will be made under the previous share repurchase program .
17 .
segment data we design , develop , manufacture and market orthopaedic reconstructive implants , biologics , dental implants , spinal implants , trauma products and related surgical products which include surgical supplies and instruments designed to aid in surgical procedures and post-operation rehabilitation .
we also provide other healthcare-related services .

we manage operations through three major geographic segments 2013 the americas , which is comprised principally of the u.s .
and includes other north , central and south american markets ; europe , which is comprised principally of europe and includes the middle east and african markets ; and asia pacific , which is comprised primarily of japan and includes other asian and pacific markets .
this structure is the basis for our reportable segment information discussed below .

management evaluates reportable segment performance based upon segment operating profit exclusive of operating expenses pertaining to share-based payment expense , inventory step-up and certain other inventory and manufacturing related charges , 201ccertain claims , 201d goodwill impairment , 201cspecial items , 201d and global operations and corporate functions .

global operations and corporate functions include research , development engineering , medical education , brand management , corporate legal , finance , and human resource functions , u.s. , puerto rico and ireland-based manufacturing operations and logistics and intangible asset amortization resulting from business combination accounting .
intercompany transactions have been eliminated from segment operating profit .

management reviews accounts receivable , inventory , property , plant and equipment , goodwill and intangible assets by reportable segment exclusive of u.s. , puerto rico and ireland-based manufacturing operations and logistics and corporate assets.

 |
| table | for the years ended december 31,                                       | 2013  | 2012  | 2011
---------------------------------------------------------------------- | ----- | ----- | -----
weighted average shares outstanding for basic net earnings per share   | 169.6 | 174.9 | 187.6
effect of dilutive stock options and other equity awards               | 2.2   | 1.1   | 1.1
weighted average shares outstanding for diluted net earnings per share | 171.8 | 176.0 | 188.7 |


| _id | dd4bc0884 |
| title |  |
| text | stock total return performance the following graph compares our total return to stockholders with the returns of the standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) and the dow jones us select health care providers index ( 201cpeer group 201d ) for the five years ended december 31 , 2017 .
the graph assumes an investment of $ 100 in each of our common stock , the s&p 500 , and the peer group on december 31 , 2012 , and that dividends were reinvested when paid. .

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

 |
| table | | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum        | $ 100      | $ 152      | $ 214      | $ 267      | $ 307      | $ 377
s&p 500    | $ 100      | $ 132      | $ 150      | $ 153      | $ 171      | $ 208
peer group | $ 100      | $ 137      | $ 175      | $ 186      | $ 188      | $ 238 |


| _id | dd4bb3ea4 |
| title |  |
| text | affected by lower sales volume of cabinets , the divestiture of our arrow and moores businesses , and an unfavorable sales mix of international plumbing products , which , in aggregate , decreased sales by approximately two percent compared to 2016 .
net sales for 2016 were positively affected by increased sales volume of plumbing products , paints and other coating products and builders' hardware , which , in aggregate , increased sales by approximately five percent compared to 2015 .

net sales for 2016 were also positively affected by favorable sales mix of cabinets and windows , and net selling price increases of north american windows and north american and international plumbing products , which , in aggregate , increased sales approximately one percent .
net sales for 2016 were negatively affected by lower sales volume of cabinets and lower net selling prices of paints and other coating products , which , in aggregate , decreased sales by approximately two percent .

net sales for 2015 were positively affected by increased sales volume of plumbing products , paints and other coating products , windows and builders' hardware .
net sales for 2015 were also positively affected by net selling price increases of plumbing products , cabinets and windows , as well as sales mix of north american cabinets and windows .
net sales for 2015 were negatively affected by lower sales volume of cabinets and lower net selling prices of paints and other coating products .

our gross profit margins were 34.2 percent , 33.4 percent and 31.5 percent in 2017 , 2016 and 2015 , respectively .
the 2017 and 2016 gross profit margins were positively impacted by increased sales volume , a more favorable relationship between net selling prices and commodity costs , and cost savings initiatives .
2016 gross profit margins were negatively impacted by an increase in warranty costs resulting from a change in our estimate of expected future warranty claim costs .

selling , general and administrative expenses as a percent of sales were 18.9 percent in 2017 compared with 19.1 percent in 2016 and 18.7 percent in 2015 .
selling , general and administrative expenses as a percent of sales in 2017 reflect increased sales and the effect of cost containment measures , partially offset by an increase in strategic growth investments , stock-based compensation , health insurance costs and trade show costs .

selling , general and administrative expenses as a percent of sales in 2016 reflect strategic growth investments , erp system implementation costs and higher insurance costs .
the following table reconciles reported operating profit to operating profit , as adjusted to exclude certain items , dollars in millions: .

operating profit margins in 2017 and 2016 were positively affected by increased sales volume , cost savings initiatives , and a more favorable relationship between net selling prices and commodity costs .
operating profit margin in 2017 was negatively impacted by an increase in strategic growth investments and certain other expenses , including stock-based compensation , health insurance costs , trade show costs and increased head count .

operating profit margin in 2016 was negatively impacted by an increase in warranty costs by a business in our windows and other specialty products segment and an increase in strategic growth investments , as well as erp system implementation costs and higher insurance costs .
.......................................................... .
.................................................................. .
..................................... .
........................................................ .

............................................ .
.............................................

 |
| table | | 2017             | 2016             | 2015
---------------------------------------- | ---------------- | ---------------- | ----------------
operating profit as reported             | $ 1169           | $ 1053           | $ 914
rationalization charges                  | 4                | 22               | 18
gain from sale of property and equipment | 2014             | 2014             | -5 ( 5 )
operating profit as adjusted             | $ 1173           | $ 1075           | $ 927
operating profit margins as reported     | 15.3% ( 15.3 % ) | 14.3% ( 14.3 % ) | 12.8% ( 12.8 % )
operating profit margins as adjusted     | 15.3% ( 15.3 % ) | 14.6% ( 14.6 % ) | 13.0% ( 13.0 % ) |


| _id | dd4bb6a78 |
| title |  |
| text | management 2019s discussion and analysis net revenues in equities were $ 8.26 billion for 2011 , 2% ( 2 % ) higher than 2010 .
during 2011 , average volatility levels increased and equity prices in europe and asia declined significantly , particularly during the third quarter .
the increase in net revenues reflected higher commissions and fees , primarily due to higher market volumes , particularly during the third quarter of 2011 .

in addition , net revenues in securities services increased compared with 2010 , reflecting the impact of higher average customer balances .
equities client execution net revenues were lower than 2010 , primarily reflecting significantly lower net revenues in shares .

the net gain attributable to the impact of changes in our own credit spreads on borrowings for which the fair value option was elected was $ 596 million ( $ 399 million and $ 197 million related to fixed income , currency and commodities client execution and equities client execution , respectively ) for 2011 , compared with a net gain of $ 198 million ( $ 188 million and $ 10 million related to fixed income , currency and commodities client execution and equities client execution , respectively ) for 2010

client execution , respectively ) for 2010 .

institutional client services operated in an environment generally characterized by increased concerns regarding the weakened state of global economies , including heightened european sovereign debt risk , and its impact on the european banking system and global financial institutions .
these conditions also impacted expectations for economic prospects in the united states and were reflected in equity and debt markets more broadly .
in addition , the downgrade in credit ratings of the u.s .

government and federal agencies and many financial institutions during the second half of 2011 contributed to further uncertainty in the markets .
these concerns , as well as other broad market concerns , such as uncertainty over financial regulatory reform , continued to have a negative impact on our net revenues during 2011 .

operating expenses were $ 12.84 billion for 2011 , 14% ( 14 % ) lower than 2010 , due to decreased compensation and benefits expenses , primarily resulting from lower net revenues , lower net provisions for litigation and regulatory proceedings ( 2010 included $ 550 million related to a settlement with the sec ) , the impact of the u.k .
bank payroll tax during 2010 , as well as an impairment of our nyse dmm rights of $ 305 million during 2010 .

these decreases were partially offset by higher brokerage , clearing , exchange and distribution fees , principally reflecting higher transaction volumes in equities .
pre-tax earnings were $ 4.44 billion in 2011 , 35% ( 35 % ) lower than 2010 .
investing & lending investing & lending includes our investing activities and the origination of loans to provide financing to clients .
these investments and loans are typically longer-term in nature .

we make investments , directly and indirectly through funds that we manage , in debt securities and loans , public and private equity securities , real estate , consolidated investment entities and power generation facilities .
the table below presents the operating results of our investing & lending segment. .

2012 versus 2011 .
net revenues in investing & lending were $ 5.89 billion and $ 2.14 billion for 2012 and 2011 , respectively .
during 2012 , investing & lending net revenues were positively impacted by tighter credit spreads and an increase in global equity prices .

results for 2012 included a gain of $ 408 million from our investment in the ordinary shares of icbc , net gains of $ 2.39 billion from other investments in equities , primarily in private equities , net gains and net interest income of $ 1.85 billion from debt securities and loans , and other net revenues of $ 1.24 billion , principally related to our consolidated investment entities .

if equity markets decline or credit spreads widen , net revenues in investing & lending would likely be negatively impacted .
operating expenses were $ 2.67 billion for 2012 , essentially unchanged compared with 2011 .
pre-tax earnings were $ 3.23 billion in 2012 , compared with a pre-tax loss of $ 531 million in 2011 .
goldman sachs 2012 annual report 55

 |
| table | in millions                          | year ended december 2012 | year ended december 2011 | year ended december 2010
------------------------------------ | ------------------------ | ------------------------ | ------------------------
icbc                                 | $ 408                    | $ -517 ( 517 )           | $ 747
equity securities ( excluding icbc ) | 2392                     | 1120                     | 2692
debt securities and loans            | 1850                     | 96                       | 2597
other                                | 1241                     | 1443                     | 1505
total net revenues                   | 5891                     | 2142                     | 7541
operating expenses                   | 2666                     | 2673                     | 3361
pre-tax earnings/ ( loss )           | $ 3225                   | $ -531 ( 531 )           | $ 4180 |


| _id | dd4c4f6b0 |
| title |  |
| text | financing activities the decrease in cash used in 2010 relative to 2009 was attributable to a decrease in commercial paper repayments , net of proceeds , proceeds from our share issuance to bm&fbovespa as well as the termination of the nymex securities lending program in 2009 .
the decrease was partially offset by the distribution to dow jones of $ 607.5 million related to index services as well as an increase in share repurchases of $ 548.3 million .

share repurchases increased in an effort to offset most of the dilution associated with the issuance of shares to bm&fbovespa .
the increase in cash used in 2009 relative to 2008 was due to new issuances of debt of $ 2.9 billion in 2008 in conjunction with our merger with nymex holdings compared with net debt reductions of $ 900.1 million in debt instruments .
the following table summarizes our debt outstanding as of december 31 , 2010: .

fixed rate notes due march 2018 , interest equal to 4.40% ( 4.40 % ) ( 2 ) .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
612.5 ( 1 ) in september 2008 , the company entered into an interest rate swap agreement that modified the variable interest obligation associated with this loan so that the interest payable effectively became fixed at a rate of 4.72% ( 4.72 % ) beginning with the interest accrued after october 22 , 2008 .

the interest rate swap agreement was terminated on january 11 , 2011 when the loan was repaid .
( 2 ) in march 2010 , we completed an unregistered offering of fixed rate notes due 2018 .
net proceeds from the offering were used to fund a distribution to dow jones in conjunction with our investment in index services .

in february 2010 , we entered into a forward-starting interest rate swap agreement that modified the interest obligation associated with these notes so that the interest payable on the notes effectively became fixed at a rate of 4.46% ( 4.46 % ) beginning with the interest accrued after march 18 , 2010 .
we maintained a $ 1.4 billion senior credit facility with various financial institutions , including the $ 420.5 million term loan and a $ 945.5 million revolving credit facility .

the senior credit facility was terminated on january 11 , 2011 .
any commercial paper outstanding was backed by the revolving credit facility .
under our senior credit facility , we were required to maintain a consolidated net worth of at least $ 12.1 billion .
effective january 11 , 2011 , we entered into a new $ 1.0 billion multi-currency revolving senior credit facility with various financial institutions .

the proceeds from the revolving senior credit facility can be used for general corporate purposes , which includes providing liquidity for our clearing house .
as long as we are not in default under the new senior credit facility , we have the option to increase the facility from time to time by an aggregate amount of up to $ 1.8 billion with the consent of the agent and lenders providing the additional funds .

the new senior credit facility matures in january 2014 and is voluntarily prepayable from time to time without premium or penalty .
under our new credit facility , we are required to remain in compliance with a consolidated net worth test , as defined as our consolidated shareholders 2019 equity as of september 30 , 2010 , giving effect to share repurchases made and special dividends paid during the term of the agreement ( and in no event greater than $ 2.0 billion in aggregate ) , multiplied by 0.65 .

we maintain a 364-day fully secured , committed line of credit with a consortium of domestic and international banks to be used in certain situations by our clearing house .

we may use the proceeds to provide temporary liquidity in the unlikely event of a clearing firm default , in the event of a liquidity constraint or default by a depositary ( custodian for our collateral ) , or in the event of a temporary disruption with the domestic payments system that would delay payment of settlement variation between us and our clearing firms .
clearing firm guaranty fund contributions received in the form of u.s .
treasury securities , government agency securities or

 |
| table | ( in millions )                                                                | par value
------------------------------------------------------------------------------ | ---------
term loan due 2011 interest equal to 3-month libor plus 1.00% ( 1.00 % ) ( 1 ) | $ 420.5
fixed rate notes due august 2013 interest equal to 5.40% ( 5.40 % )            | 750.0
fixed rate notes due february 2014 interest equal to 5.75% ( 5.75 % )          | 750.0
fixed rate notes due march 2018 interest equal to 4.40% ( 4.40 % ) ( 2 )       | 612.5 |


| _id | dd4bcce18 |
| title |  |
| text | acquisition added approximately 1700 water customers and nearly 2000 wastewater customers .
the tex as assets served approximately 4200 water and 1100 wastewater customers in the greater houston metropolitan as noted above , as a result of these sales , these regulated subsidiaries are presented as discontinued operations for all periods presented .
therefore , the amounts , statistics and tables presented in this section refer only to on-going operations , unless otherwise noted .

the following table sets forth our regulated businesses operating revenue for 2013 and number of customers from continuing operations as well as an estimate of population served as of december 31 , 2013 : operating revenues ( in millions ) % (  % ) of total number of customers % (  % ) of total estimated population served ( in millions ) % (  % ) of total .

( a ) includes illinois-american water company , which we refer to as ilawc and american lake water company , also a regulated subsidiary in illinois .
( b ) west virginia-american water company , which we refer to as wvawc , and its subsidiary bluefield valley water works company .
( c ) includes data from our operating subsidiaries in the following states : georgia , hawaii , iowa , kentucky , maryland , michigan , new york , tennessee , and virginia .

approximately 87.5 % (  % ) of operating revenue from our regulated businesses in 2013 was generated from approximately 2.7 million customers in our seven largest states , as measured by operating revenues .
in fiscal year 2013 , no single customer accounted for more than 10% ( 10 % ) of our annual operating revenue .
overview of networks , facilities and water supply our regulated businesses operate in approximately 1500 communities in 16 states in the united states .

our primary operating assets include 87 dams along with approximately 80 surface water treatment plants , 500 groundwater treatment plants , 1000 groundwater wells , 100 wastewater treatment facilities , 1200 treated water storage facilities , 1300 pumping stations , and 47000 miles of mains and collection pipes .
our regulated utilities own substantially all of the assets used by our regulated businesses .
we generally own the land and physical assets used to store , extract and treat source water .

typically , we do not own the water itself , which is held in public trust and is allocated to us through contracts and allocation rights granted by federal and state agencies or through the ownership of water rights pursuant to local law .
maintaining the reliability of our networks is a key activity of our regulated businesses .
we have ongoing infrastructure renewal programs in all states in which our regulated businesses operate .

these programs consist of both rehabilitation of existing mains and replacement of mains that have reached the end of their useful service lives .
our ability to meet the existing and future water demands of our customers depends on an adequate supply of water .
drought , governmental restrictions , overuse of sources of water , the protection of threatened species or

 |
| table | new jersey                    | operatingrevenues ( in millions ) $ 638.0 | % (  % ) of total 24.6% ( 24.6 % ) | number ofcustomers 647168 | % (  % ) of total 20.1% ( 20.1 % ) | estimatedpopulationserved ( in millions ) 2.5 | % (  % ) of total 21.7% ( 21.7 % )
----------------------------- | ----------------------------------------- | ---------------------------------- | ------------------------- | ---------------------------------- | --------------------------------------------- | ----------------------------------
pennsylvania                  | 571.2                                     | 22.0% ( 22.0 % )                   | 666947                    | 20.7% ( 20.7 % )                   | 2.1                                           | 18.3% ( 18.3 % )
missouri                      | 264.8                                     | 10.2% ( 10.2 % )                   | 464232                    | 14.4% ( 14.4 % )                   | 1.5                                           | 13.1% ( 13.1 % )
illinois ( a )                | 261.7                                     | 10.1% ( 10.1 % )                   | 311464                    | 9.7% ( 9.7 % )                     | 1.2                                           | 10.4% ( 10.4 % )
california                    | 209.5                                     | 8.1% ( 8.1 % )                     | 173986                    | 5.4% ( 5.4 % )                     | 0.6                                           | 5.2% ( 5.2 % )
indiana                       | 199.2                                     | 7.7% ( 7.7 % )                     | 293345                    | 9.1% ( 9.1 % )                     | 1.2                                           | 10.4% ( 10.4 % )
west virginia ( b )           | 124.2                                     | 4.8% ( 4.8 % )                     | 173208                    | 5.4% ( 5.4 % )                     | 0.6                                           | 5.2% ( 5.2 % )
subtotal ( top seven states ) | 2268.6                                    | 87.5% ( 87.5 % )                   | 2730350                   | 84.8% ( 84.8 % )                   | 9.7                                           | 84.3% ( 84.3 % )
other ( c )                   | 325.3                                     | 12.5% ( 12.5 % )                   | 489149                    | 15.2% ( 15.2 % )                   | 1.8                                           | 15.7% ( 15.7 % )
total regulated businesses    | $ 2593.9                                  | 100.0% ( 100.0 % )                 | 3219499                   | 100.0% ( 100.0 % )                 | 11.5                                          | 100.0% ( 100.0 % ) |


| _id | dd496fd78 |
| title |  |
| text | in addition to the committed credit facilities discussed above , certain of our subsidiaries maintain short-term credit arrangements to meet their respective working capital needs .
these credit arrangements , which amounted to approximately $ 2.9 billion at december 31 , 2015 , and $ 3.2 billion at december 31 , 2014 , are for the sole use of our subsidiaries .
borrowings under these arrangements amounted to $ 825 million at december 31 , 2015 , and $ 1.2 billion at december 31 , 2014 .

commercial paper program 2013 we have commercial paper programs in place in the u.s .
and in europe .
at december 31 , 2015 and december 31 , 2014 , we had no commercial paper outstanding .
effective april 19 , 2013 , our commercial paper program in the u.s .
was increased by $ 2.0 billion .
as a result , our commercial paper programs in place in the u.s .
and in europe currently have an aggregate issuance capacity of $ 8.0 billion .

we expect that the existence of the commercial paper program and the committed credit facilities , coupled with our operating cash flows , will enable us to meet our liquidity requirements .
sale of accounts receivable 2013 to mitigate credit risk and enhance cash and liquidity management we sell trade receivables to unaffiliated financial institutions .
these arrangements allow us to sell , on an ongoing basis , certain trade receivables without recourse .

the trade receivables sold are generally short-term in nature and are removed from the consolidated balance sheets .
we sell trade receivables under two types of arrangements , servicing and non-servicing .
pmi 2019s operating cash flows were positively impacted by the amount of the trade receivables sold and derecognized from the consolidated balance sheets , which remained outstanding with the unaffiliated financial institutions .

the trade receivables sold that remained outstanding under these arrangements as of december 31 , 2015 , 2014 and 2013 were $ 888 million , $ 120 million and $ 146 million , respectively .
the net proceeds received are included in cash provided by operating activities in the consolidated statements of cash flows .
for further details , see item 8 , note 23 .
sale of accounts receivable to our consolidated financial statements .

debt 2013 our total debt was $ 28.5 billion at december 31 , 2015 , and $ 29.5 billion at december 31 , 2014 .
our total debt is primarily fixed rate in nature .
for further details , see item 8 , note 7 .
indebtedness .
the weighted-average all-in financing cost of our total debt was 3.0% ( 3.0 % ) in 2015 , compared to 3.2% ( 3.2 % ) in 2014 .
see item 8 , note 16 .
fair value measurements to our consolidated financial statements for a discussion of our disclosures related to the fair value of debt .

the amount of debt that we can issue is subject to approval by our board of directors .
on february 21 , 2014 , we filed a shelf registration statement with the u.s .
securities and exchange commission , under which we may from time to time sell debt securities and/or warrants to purchase debt securities over a three-year period .
our debt issuances in 2015 were as follows : ( in millions ) type face value interest rate issuance maturity u.s .

dollar notes ( a ) $ 500 1.250% ( 1.250 % ) august 2015 august 2017 u.s .
dollar notes ( a ) $ 750 3.375% ( 3.375 % ) august 2015 august 2025 ( a ) interest on these notes is payable annually in arrears beginning in february 2016 .
the net proceeds from the sale of the securities listed in the table above will be used for general corporate purposes .
the weighted-average time to maturity of our long-term debt was 10.8 years at the end of 2014 and 10.5 years at the end of 2015 .

2022 off-balance sheet arrangements and aggregate contractual obligations we have no off-balance sheet arrangements , including special purpose entities , other than guarantees and contractual obligations discussed below. .

in addition to the committed credit facilities discussed above , certain of our subsidiaries maintain short-term credit arrangements to meet their respective working capital needs .
these credit arrangements , which amounted to approximately $ 2.9 billion at december 31 , 2015 , and $ 3.2 billion at december 31 , 2014 , are for the sole use of our subsidiaries .
borrowings under these arrangements amounted to $ 825 million at december 31 , 2015 , and $ 1.2 billion at december 31 , 2014 .

commercial paper program 2013 we have commercial paper programs in place in the u.s .
and in europe .
at december 31 , 2015 and december 31 , 2014 , we had no commercial paper outstanding .
effective april 19 , 2013 , our commercial paper program in the u.s .
was increased by $ 2.0 billion .
as a result , our commercial paper programs in place in the u.s .
and in europe currently have an aggregate issuance capacity of $ 8.0 billion .

we expect that the existence of the commercial paper program and the committed credit facilities , coupled with our operating cash flows , will enable us to meet our liquidity requirements .
sale of accounts receivable 2013 to mitigate credit risk and enhance cash and liquidity management we sell trade receivables to unaffiliated financial institutions .
these arrangements allow us to sell , on an ongoing basis , certain trade receivables without recourse .

the trade receivables sold are generally short-term in nature and are removed from the consolidated balance sheets .
we sell trade receivables under two types of arrangements , servicing and non-servicing .
pmi 2019s operating cash flows were positively impacted by the amount of the trade receivables sold and derecognized from the consolidated balance sheets , which remained outstanding with the unaffiliated financial institutions .

the trade receivables sold that remained outstanding under these arrangements as of december 31 , 2015 , 2014 and 2013 were $ 888 million , $ 120 million and $ 146 million , respectively .
the net proceeds received are included in cash provided by operating activities in the consolidated statements of cash flows .
for further details , see item 8 , note 23 .
sale of accounts receivable to our consolidated financial statements .

debt 2013 our total debt was $ 28.5 billion at december 31 , 2015 , and $ 29.5 billion at december 31 , 2014 .
our total debt is primarily fixed rate in nature .
for further details , see item 8 , note 7 .
indebtedness .
the weighted-average all-in financing cost of our total debt was 3.0% ( 3.0 % ) in 2015 , compared to 3.2% ( 3.2 % ) in 2014 .
see item 8 , note 16 .
fair value measurements to our consolidated financial statements for a discussion of our disclosures related to the fair value of debt .

the amount of debt that we can issue is subject to approval by our board of directors .
on february 21 , 2014 , we filed a shelf registration statement with the u.s .
securities and exchange commission , under which we may from time to time sell debt securities and/or warrants to purchase debt securities over a three-year period .
our debt issuances in 2015 were as follows : ( in millions ) type face value interest rate issuance maturity u.s .

dollar notes ( a ) $ 500 1.250% ( 1.250 % ) august 2015 august 2017 u.s .
dollar notes ( a ) $ 750 3.375% ( 3.375 % ) august 2015 august 2025 ( a ) interest on these notes is payable annually in arrears beginning in february 2016 .
the net proceeds from the sale of the securities listed in the table above will be used for general corporate purposes .
the weighted-average time to maturity of our long-term debt was 10.8 years at the end of 2014 and 10.5 years at the end of 2015 .

2022 off-balance sheet arrangements and aggregate contractual obligations we have no off-balance sheet arrangements , including special purpose entities , other than guarantees and contractual obligations discussed below.

 |
| table | type               |       | face value | interest rate      | issuance    | maturity
------------------ | ----- | ---------- | ------------------ | ----------- | -----------
u.s . dollar notes | ( a ) | $ 500      | 1.250% ( 1.250 % ) | august 2015 | august 2017
u.s . dollar notes | ( a ) | $ 750      | 3.375% ( 3.375 % ) | august 2015 | august 2025 |


| _id | dd4973a2c |
| title |  |
| text | as a result of our acquisition of third wave on july 24 , 2008 , we assumed certain operating leases , the most significant of which is related to their corporate facility in madison , wisconsin , which is effective through september 2014 .
future lease payments on these operating leases were approximately $ 5.8 million as of september 27 , 2008 .
additionally , we assumed several license agreements for certain patent rights .

these payments will be made through 2011 and future payments under these license agreements are approximately $ 7.0 million as of september 27 , 2008 .
contractual obligations .
the following table summarizes our contractual obligations and commitments as of september 27 , 2008: .

( 1 ) approximately $ 6.4 million of the purchase obligations relates to an exclusive distribution and service agreement in the united states under which we will sell and service a line of extremity mri systems .
pursuant to the terms of this contract , we have certain minimum inventory purchase obligations for the initial term of eighteen months .
thereafter the purchase obligations are subject to renegotiation in the event of any unforeseen changes in the market dynamics .

( 2 ) as a result of the merger with cytyc , we assumed on a consolidated basis certain non-cancelable supply contracts .
for reasons of quality assurance , sole source availability or cost effectiveness , certain key components and raw materials are available only from a sole supplier .
to assure continuity of supply while maintaining high quality and reliability , long-term supply contracts have been executed with these suppliers .

in certain of these contracts , a minimum purchase commitment has been established .
( 3 ) as a result of the merger with cytyc , we assumed a private equity investment commitment with a limited liability partnership , which could be paid over the succeeding three years .
the amounts above do not include any amount that may be payable to biolucent and adiana for earn-outs .

we are working on several projects and we expect to continue to review and evaluate potential acquisitions of businesses , products or technologies , and strategic alliances that we believe will complement our current or future business .

subject to the risk factors set forth in part i , item 1a of this report and the general disclaimers set forth in our special note regarding forward-looking statements at the outset of this report , we believe that cash flow from operations and cash available from our amended credit agreement will provide us with sufficient funds in order to fund our expected operations over the next twelve months .

our longer-term liquidity is contingent upon future operating performance and our ability to continue to meet financial covenants under our amended credit agreement .
we may also require additional capital in the future to fund capital expenditures , acquisitions or other investments , or to repay our convertible notes .

the holders of the convertible notes may require us to repurchase the notes on december 13 of 2013 , and on each of december 15 , 2017 , 2022 , 2027 and 2032 at a repurchase price equal to 100% ( 100 % ) of their accreted principal amount .
these capital requirements could be substantial .
our operating performance may also be affected by matters discussed under the above-referenced risk factors as elsewhere in this report .

these risks , trends and uncertainties may also adversely affect our long- term liquidity.

 |
| table | contractual obligations                | payments due by period less than 1 year | payments due by period 1-3 years | payments due by period 3-5 years | payments due by period more than 5 years | payments due by period total
-------------------------------------- | --------------------------------------- | -------------------------------- | -------------------------------- | ---------------------------------------- | ----------------------------
long-term debt obligations             | $ 38480                                 | $ 109436                         | $ 327400                         | $ 1725584                                | $ 2200900
interest on long-term debt obligations | 58734                                   | 110973                           | 90433                            | 7484                                     | 267624
operating leases                       | 18528                                   | 33162                            | 27199                            | 63616                                    | 142505
purchase obligations ( 1 )             | 33176                                   | 15703                            | 2014                             | 2014                                     | 48879
financing leases                       | 2408                                    | 5035                             | 5333                             | 15008                                    | 27784
long-term supply contracts ( 2 )       | 3371                                    | 6000                             | 3750                             | 2014                                     | 13121
private equity investment ( 3 )        | 1874                                    | 2014                             | 2014                             | 2014                                     | 1874
total contractual obligations          | $ 156571                                | $ 280309                         | $ 454115                         | $ 1811692                                | $ 2702687 |


| _id | dd4c52298 |
| title |  |
| text | 2007 annual report 41 snap-on 2019s long-term financing strategy is to maintain continuous access to the debt markets to accommodate its liquidity needs .
see note 9 to the consolidated financial statements for further information on snap-on 2019s debt and credit facilities .
the following discussion focuses on information included in the accompanying consolidated statements of cash flow .

cash flow provided from operating activities was $ 231.1 million in 2007 , $ 203.4 million in 2006 , and $ 221.1 million in 2005 .
depreciation expense was $ 53.5 million in 2007 , $ 48.5 million in 2006 and $ 49.5 million in 2005 .
the increase in depreciation from 2006 levels primarily reflects the impact of higher levels of capital spending in 2006 and 2007 .
capital expenditures were $ 61.9 million in 2007 , $ 50.5 million in 2006 and $ 40.1 million in 2005 .

capital expenditures in all three years mainly reflect efficiency and cost-reduction capital investments , including the installation of new production equipment and machine tooling to enhance manufacturing and distribution operations , as well as ongoing replacements of manufacturing and distribution equipment .

capital spending in 2006 and 2007 also included higher levels of spending to support the company 2019s strategic supply chain and other growth initiatives , including the expansion of the company 2019s manufacturing capabilities in lower-cost regions and emerging markets , and for the replacement and enhancement of its existing global enterprise resource planning ( erp ) management information system , which will continue over a period of several years .

snap-on believes that its cash generated from operations , as well as the funds available from its credit facilities , will be sufficient to fund the company 2019s capital expenditure requirements in 2008 .
amortization expense was $ 22.2 million in 2007 , $ 3.4 million in 2006 and $ 2.7 million in 2005 .
the increase in 2007 amortization expense is primarily due to the amortization of intangibles from the november 2006 acquisition of business solutions .

see note 6 to the consolidated financial statements for information on acquired intangible assets .
snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and dealer stock purchase plans , stock options , and other corporate purposes , as well as to repurchase shares when the company believes market conditions are favorable .

in 2007 , snap-on repurchased 1860000 shares of common stock for $ 94.4 million under its previously announced share repurchase programs .
the cash used to repurchase shares of common stock was partially offset by $ 39.2 million of proceeds from stock purchase and option plan exercises and $ 6.0 million of related excess tax benefits .

as of december 29 , 2007 , snap-on had remaining availability to repurchase up to an additional $ 116.8 million in common stock pursuant to the board of directors 2019 ( 201cboard 201d ) authorizations .
the purchase of snap-on common stock is at the company 2019s discretion , subject to prevailing financial and market conditions .
snap-on repurchased 2616618 shares of common stock for $ 109.8 million in 2006 and 912100 shares of common stock for $ 32.1 million in 2005 .

snap-on believes that its cash generated from operations , as well as the funds available from its credit facilities , will be sufficient to fund the company 2019s share repurchases in 2008 .
on october 3 , 2005 , snap-on repaid its $ 100 million , 10-year , 6.625% ( 6.625 % ) unsecured notes upon their maturity .
the $ 100 million debt repayment was made with available cash on hand .
snap-on has paid consecutive quarterly cash dividends , without interruption or reduction , since 1939 .

cash dividends paid in 2007 , 2006 and 2005 totaled $ 64.8 million , $ 63.6 million and $ 57.8 million , respectively .
on november 1 , 2007 , the company announced that its board increased the quarterly cash dividend by 11.1% ( 11.1 % ) to $ 0.30 per share ( $ 1.20 per share per year ) .
at the beginning of fiscal 2006 , the company 2019s board increased the quarterly cash dividend by 8% ( 8 % ) to $ 0.27 per share ( $ 1.08 per share per year ) . .

cash dividends paid as a percent of prior-year retained earnings 5.5% ( 5.5 % ) 5.6% ( 5.6 % ) 5.2% ( 5.2 % ) snap-on believes that its cash generated from operations , as well as the funds available from its credit facilities , will be sufficient to pay dividends in 2008 .
off-balance sheet arrangements except as set forth below in the section labeled 201ccontractual obligations and commitments , 201d the company had no off- balance sheet arrangements as of december 29 , 2007.

 |
| table | | 2007           | 2006           | 2005
---------------------------------------------------------------- | -------------- | -------------- | --------------
cash dividends paid per common share                             | $ 1.11         | $ 1.08         | $ 1.00
cash dividends paid as a percent of prior-year retained earnings | 5.5% ( 5.5 % ) | 5.6% ( 5.6 % ) | 5.2% ( 5.2 % ) |


| _id | dd4b9e068 |
| title |  |
| text | 32| | duke realty corporation annual report 2012 2022 in 2010 , we sold approximately 60 acres of land , in two separate transactions , which resulted in impairment charges of $ 9.8 million .
these sales were opportunistic in nature and we had not identified or actively marketed this land for disposition , as it was previously intended to be held for development .
general and administrative expenses general and administrative expenses increased from $ 41.3 million in 2010 to $ 43.1 million in 2011 .

the following table sets forth the factors that led to the increase in general and administrative expenses from 2010 to 2011 ( in millions ) : .

interest expense interest expense from continuing operations increased from $ 186.4 million in 2010 to $ 220.5 million in 2011 .
the increase was primarily a result of increased average outstanding debt during 2011 compared to 2010 , which was driven by our acquisition activities as well as other uses of capital .

a $ 7.2 million decrease in the capitalization of interest costs , the result of developed properties no longer meeting the criteria for interest capitalization , also contributed to the increase in interest expense .
gain ( loss ) on debt transactions there were no gains or losses on debt transactions during 2011 .
during 2010 , through a cash tender offer and open market transactions , we repurchased certain of our outstanding series of unsecured notes scheduled to mature in 2011 and 2013 .

in total , we paid $ 292.2 million for unsecured notes that had a face value of $ 279.9 million .
we recognized a net loss on extinguishment of $ 16.3 million after considering the write-off of unamortized deferred financing costs , discounts and other accounting adjustments .
acquisition-related activity during 2011 , we recognized approximately $ 2.3 million in acquisition costs , compared to $ 1.9 million of such costs in 2010 .

during 2011 , we also recognized a $ 1.1 million gain related to the acquisition of a building from one of our 50%-owned unconsolidated joint ventures , compared to a $ 57.7 million gain in 2010 on the acquisition of our joint venture partner 2019s 50% ( 50 % ) interest in dugan .

critical accounting policies the preparation of our consolidated financial statements in conformity with gaap requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period .

our estimates , judgments and assumptions are inherently subjective and based on the existing business and market conditions , and are therefore continually evaluated based upon available information and experience .
note 2 to the consolidated financial statements includes further discussion of our significant accounting policies .
our management has assessed the accounting policies used in the preparation of our financial statements and discussed them with our audit committee and independent auditors .

the following accounting policies are considered critical based upon materiality to the financial statements , degree of judgment involved in estimating reported amounts and sensitivity to changes in industry and economic conditions : ( 1 ) the increase to our overall pool of overhead costs from 2010 is largely due to increased severance pay related to overhead reductions that took place near the end of 2011 .

( 2 ) our total leasing activity increased and we also increased wholly owned development activities from 2010 .
we capitalized $ 25.3 million and $ 10.4 million of our total overhead costs to leasing and development , respectively , for consolidated properties during 2011 , compared to capitalizing $ 23.5 million and $ 8.5 million of such costs , respectively , for 2010 .

combined overhead costs capitalized to leasing and development totaled 20.6% ( 20.6 % ) and 19.1% ( 19.1 % ) of our overall pool of overhead costs for 2011 and 2010 , respectively.

 |
| table | general and administrative expenses - 2010                                             | $ 41.3
-------------------------------------------------------------------------------------- | ------------
increase to overall pool of overhead costs ( 1 )                                       | 5.7
increased absorption of costs by wholly-owned development and leasing activities ( 2 ) | -3.7 ( 3.7 )
increased allocation of costs to service operations and rental operations              | -0.2 ( 0.2 )
general and administrative expenses - 2011                                             | $ 43.1 |


| _id | dd4bbae02 |
| title |  |
| text | in 2017 , the company granted 440076 shares of restricted class a common stock and 7568 shares of restricted stock units .
restricted common stock and restricted stock units generally have a vesting period of two to four years .
the fair value related to these grants was $ 58.7 million , which is recognized as compensation expense on an accelerated basis over the vesting period .

dividends are accrued on restricted class a common stock and restricted stock units and are paid once the restricted stock vests .
in 2017 , the company also granted 203298 performance shares .
the fair value related to these grants was $ 25.3 million , which is recognized as compensation expense on an accelerated and straight-lined basis over the vesting period .
the vesting of these shares is contingent on meeting stated performance or market conditions .

the following table summarizes restricted stock , restricted stock units , and performance shares activity for 2017 : number of shares weighted average grant date fair value .

the total fair value of restricted stock , restricted stock units , and performance shares that vested during 2017 , 2016 and 2015 was $ 66.0 million , $ 59.8 million and $ 43.3 million , respectively .
under the espp , eligible employees may acquire shares of class a common stock using after-tax payroll deductions made during consecutive offering periods of approximately six months in duration .

shares are purchased at the end of each offering period at a price of 90% ( 90 % ) of the closing price of the class a common stock as reported on the nasdaq global select market .
compensation expense is recognized on the dates of purchase for the discount from the closing price .
in 2017 , 2016 and 2015 , a total of 19936 , 19858 and 19756 shares , respectively , of class a common stock were issued to participating employees .
these shares are subject to a six-month holding period .

annual expense of $ 0.3 million for the purchase discount was recognized in 2017 , and $ 0.2 million was recognized in both 2016 and 2015 .
non-executive directors receive an annual award of class a common stock with a value equal to $ 100000 .
non-executive directors may also elect to receive some or all of the cash portion of their annual stipend , up to $ 60000 , in shares of stock based on the closing price at the date of distribution .

as a result , 19736 shares , 26439 shares and 25853 shares of class a common stock were issued to non-executive directors during 2017 , 2016 and 2015 , respectively .
these shares are not subject to any vesting restrictions .
expense of $ 2.5 million , $ 2.4 million and $ 2.5 million related to these stock-based payments was recognized for the years ended december 31 , 2017 , 2016 and 2015 , respectively.

 |
| table | | number of shares   | weightedaveragegrant datefair value
------------------------------- | ------------------ | -----------------------------------
outstanding at december 31 2016 | 1820578            | $ 98
granted                         | 650942             | 129
vested                          | -510590 ( 510590 ) | 87
cancelled                       | -401699 ( 401699 ) | 95
outstanding at december 31 2017 | 1559231            | 116 |


| _id | dd4c02fa4 |
| title |  |
| text | devon energy corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) the following methods and assumptions were used to estimate the fair values in the tables above .
fixed-income securities 2014 devon 2019s fixed-income securities consist of u.s .
treasury obligations , bonds issued by investment-grade companies from diverse industries , and asset-backed securities .
these fixed-income securities are actively traded securities that can be redeemed upon demand .

the fair values of these level 1 securities are based upon quoted market prices .
devon 2019s fixed income securities also include commingled funds that primarily invest in long-term bonds and u.s .
treasury securities .
these fixed income securities can be redeemed on demand but are not actively traded .
the fair values of these level 2 securities are based upon the net asset values provided by the investment managers .

equity securities 2014 devon 2019s equity securities include a commingled global equity fund that invests in large , mid and small capitalization stocks across the world 2019s developed and emerging markets .
these equity securities can be redeemed on demand but are not actively traded .
the fair values of these level 2 securities are based upon the net asset values provided by the investment managers .
at december 31 , 2010 , devon 2019s equity securities consisted of investments in u.s .

large and small capitalization companies and international large capitalization companies .
these equity securities were actively traded securities that could be redeemed upon demand .
the fair values of these level 1 securities are based upon quoted market prices .
at december 31 , 2010 , devon 2019s equity securities also included a commingled fund that invested in large capitalization companies .
these equity securities could be redeemed on demand but were not actively traded .

the fair values of these level 2 securities are based upon the net asset values provided by the investment managers .
other securities 2014 devon 2019s other securities include commingled , short-term investment funds .
these securities can be redeemed on demand but are not actively traded .
the fair values of these level 2 securities are based upon the net asset values provided by investment managers .

devon 2019s hedge fund and alternative investments include an investment in an actively traded global mutual fund that focuses on alternative investment strategies and a hedge fund of funds that invests both long and short using a variety of investment strategies .
devon 2019s hedge fund of funds is not actively traded and devon is subject to redemption restrictions with regards to this investment .

the fair value of this level 3 investment represents the fair value as determined by the hedge fund manager .
included below is a summary of the changes in devon 2019s level 3 plan assets ( in millions ) . .

 |
| table | december 31 2009   | $ 51
------------------ | --------
purchases          | 3
investment returns | 4
december 31 2010   | 58
purchases          | 33
investment returns | -1 ( 1 )
december 31 2011   | $ 90 |


| _id | dd4bc389a |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements mexico litigation 2014one of the company 2019s subsidiaries , spectrasite communications , inc .
( 201csci 201d ) , is involved in a lawsuit brought in mexico against a former mexican subsidiary of sci ( the subsidiary of sci was sold in 2002 , prior to the company 2019s merger with sci 2019s parent in 2005 ) .

the lawsuit concerns a terminated tower construction contract and related agreements with a wireless carrier in mexico .
the primary issue for the company is whether sci itself can be found liable to the mexican carrier .
the trial and lower appellate courts initially found that sci had no such liability in part because mexican courts do not have the necessary jurisdiction over sci .

following several decisions by mexican appellate courts , including the supreme court of mexico , and related appeals by both parties , an intermediate appellate court issued a new decision that would , if enforceable , reimpose liability on sci in september 2010 .
in its decision , the intermediate appellate court identified potential damages of approximately $ 6.7 million , and on october 14 , 2010 , the company filed a new constitutional appeal to again dispute the decision .

as a result , at this stage of the proceeding , the company is unable to determine whether the liability imposed on sci by the september 2010 decision will survive or to estimate its share , if any , of that potential liability if the decision survives the pending appeal .

xcel litigation 2014on june 3 , 2010 , horse-shoe capital ( 201chorse-shoe 201d ) , a company formed under the laws of the republic of mauritius , filed a complaint in the supreme court of the state of new york , new york county , with respect to horse-shoe 2019s sale of xcel to american tower mauritius ( 201catmauritius 201d ) , the company 2019s wholly-owned subsidiary formed under the laws of the republic of mauritius .

the complaint names atmauritius , ati and the company as defendants , and the dispute concerns the timing and amount of distributions to be made by atmauritius to horse-shoe from a $ 7.5 million holdback escrow account and a $ 15.7 million tax escrow account , each established by the transaction agreements at closing .
the complaint seeks release of the entire holdback escrow account , plus an additional $ 2.8 million , as well as the release of approximately $ 12.0 million of the tax escrow account .

the complaint also seeks punitive damages in excess of $ 69.0 million .
the company filed an answer to the complaint in august 2010 , disputing both the amounts alleged to be owed under the escrow agreements as well as the timing of the escrow distributions .
the company also asserted in its answer that the demand for punitive damages is meritless .

the parties have filed cross-motions for summary judgment concerning the release of the tax escrow account and in january 2011 the court granted the company 2019s motion for summary judgment , finding no obligation for the company to release the disputed portion of the tax escrow until 2013 .
other claims are pending .
the company is vigorously defending the lawsuit .
lease obligations 2014the company leases certain land , office and tower space under operating leases that expire over various terms .

many of the leases contain renewal options with specified increases in lease payments upon exercise of the renewal option .
escalation clauses present in operating leases , excluding those tied to cpi or other inflation-based indices , are recognized on a straight-line basis over the non-cancellable term of the lease .

future minimum rental payments under non-cancellable operating leases include payments for certain renewal periods at the company 2019s option because failure to renew could result in a loss of the applicable tower site and related revenues from tenant leases , thereby making it reasonably assured that the company will renew the lease .
such payments in effect at december 31 , 2010 are as follows ( in thousands ) : year ending december 31 .

 |
| table | 2011       | $ 257971
---------- | ---------
2012       | 254575
2013       | 251268
2014       | 246392
2015       | 238035
thereafter | 2584332
total      | $ 3832573 |


| _id | dd4c63f0c |
| title |  |
| text | warrants in conjunction with its acquisition of solexa , inc .
on january 26 , 2007 , the company assumed 4489686 warrants issued by solexa prior to the acquisition .
during the year ended december 28 , 2008 , there were 401362 warrants exercised , resulting in cash proceeds to the company of $ 3.0 million .
as of december 28 , 2008 , 252164 of the assumed warrants had expired .
a summary of all warrants outstanding as of december 28 , 2008 is as follows: .

( 1 ) represents warrants sold in connection with the offering of the company 2019s convertible senior notes ( see note 8 ) .
treasury stock in connection with its issuance of $ 400.0 million principal amount of 0.625% ( 0.625 % ) convertible senior notes due 2014 on february 16 , 2007 , the company repurchased 11.6 million shares of its outstanding common stock for $ 201.6 million in privately negotiated transactions concurrently with the offering .

on february 20 , 2007 , the company executed a rule 10b5-1 trading plan to repurchase up to $ 75.0 million of its outstanding common stock over a period of six months .
the company repurchased 3.2 million shares of its common stock under this plan for $ 50.0 million .
as of december 30 , 2007 , this plan had expired .
on october 23 , 2008 , the board of directors authorized a $ 120.0 million stock repurchase program .

as of december 28 , 2008 the company had repurchased 3.1 million shares for $ 70.8 million under the plan in open-market transactions or through privately negotiated transactions in compliance with rule 10b-18 under the securities exchange act of 1934 .
as of december 28 , 2008 , $ 49.2 million remains authorized for future repurchases under the program .

stockholder rights plan on may 3 , 2001 , the board of directors of the company declared a dividend of one preferred share purchase right ( a right ) for each outstanding share of common stock of the company .
the dividend was payable on may 14 , 2001 ( the record date ) to the stockholders of record on that date .

each right entitles the registered holder to purchase from the company one unit consisting of one-thousandth of a share of its series a junior participating preferred stock at a price of $ 100 per unit .
the rights will be exercisable if a person or group hereafter acquires beneficial ownership of 15% ( 15 % ) or more of the outstanding common stock of the company or announces an offer for 15% ( 15 % ) or more of the outstanding common stock .

if a person or group acquires 15% ( 15 % ) or more of the outstanding common stock of the company , each right will entitle its holder to purchase , at the exercise price of the right , a number of shares of common stock having a market value of two times the exercise price of the right .

if the company is acquired in a merger or other business combination transaction after a person acquires 15% ( 15 % ) or more of the company 2019s common stock , each right will entitle its holder to purchase , at the right 2019s then-current exercise price , a number of common shares of the acquiring illumina , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | number of shares | exercise price | expiration date
---------------- | -------------- | ---------------
238510           | $ 7.27         | 4/25/2010
864040           | $ 7.27         | 7/12/2010
809246           | $ 10.91        | 11/23/2010
1125734          | $ 10.91        | 1/19/2011
18322320 ( 1 )   | $ 31.44        | 2/15/2014
21359850         |                | |