| _id | dd4bc0f5a |
| title |  |
| text | amortization expense , which is included in selling , general and administrative expenses , was $ 13.0 million , $ 13.9 million and $ 8.5 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
the following is the estimated amortization expense for the company 2019s intangible assets as of december 31 , 2016 : ( in thousands ) .

at december 31 , 2016 , 2015 and 2014 , the company determined that its goodwill and indefinite- lived intangible assets were not impaired .
5 .
credit facility and other long term debt credit facility the company is party to a credit agreement that provides revolving commitments for up to $ 1.25 billion of borrowings , as well as term loan commitments , in each case maturing in january 2021 .

as of december 31 , 2016 there was no outstanding balance under the revolving credit facility and $ 186.3 million of term loan borrowings remained outstanding .
at the company 2019s request and the lender 2019s consent , revolving and or term loan borrowings may be increased by up to $ 300.0 million in aggregate , subject to certain conditions as set forth in the credit agreement , as amended .

incremental borrowings are uncommitted and the availability thereof , will depend on market conditions at the time the company seeks to incur such borrowings .
the borrowings under the revolving credit facility have maturities of less than one year .
up to $ 50.0 million of the facility may be used for the issuance of letters of credit .
there were $ 2.6 million of letters of credit outstanding as of december 31 , 2016 .

the credit agreement contains negative covenants that , subject to significant exceptions , limit the ability of the company and its subsidiaries to , among other things , incur additional indebtedness , make restricted payments , pledge their assets as security , make investments , loans , advances , guarantees and acquisitions , undergo fundamental changes and enter into transactions with affiliates .

the company is also required to maintain a ratio of consolidated ebitda , as defined in the credit agreement , to consolidated interest expense of not less than 3.50 to 1.00 and is not permitted to allow the ratio of consolidated total indebtedness to consolidated ebitda to be greater than 3.25 to 1.00 ( 201cconsolidated leverage ratio 201d ) .
as of december 31 , 2016 , the company was in compliance with these ratios .

in addition , the credit agreement contains events of default that are customary for a facility of this nature , and includes a cross default provision whereby an event of default under other material indebtedness , as defined in the credit agreement , will be considered an event of default under the credit agreement .

borrowings under the credit agreement bear interest at a rate per annum equal to , at the company 2019s option , either ( a ) an alternate base rate , or ( b ) a rate based on the rates applicable for deposits in the interbank market for u.s .
dollars or the applicable currency in which the loans are made ( 201cadjusted libor 201d ) , plus in each case an applicable margin .
the applicable margin for loans will

 |
| table | 2017                                      | $ 10509
----------------------------------------- | -------
2018                                      | 9346
2019                                      | 9240
2020                                      | 7201
2021                                      | 5318
2022 and thereafter                       | 16756
amortization expense of intangible assets | $ 58370 |


| _id | dd4be3640 |
| title |  |
| text | the goldman sachs group , inc .
and subsidiaries notes to consolidated financial statements 2030 purchased interests represent senior and subordinated interests , purchased in connection with secondary market-making activities , in securitization entities in which the firm also holds retained interests .

2030 substantially all of the total outstanding principal amount and total retained interests relate to securitizations during 2014 and thereafter as of december 2018 , and relate to securitizations during 2012 and thereafter as of december 2017 .
2030 the fair value of retained interests was $ 3.28 billion as of december 2018 and $ 2.13 billion as of december 2017 .

in addition to the interests in the table above , the firm had other continuing involvement in the form of derivative transactions and commitments with certain nonconsolidated vies .
the carrying value of these derivatives and commitments was a net asset of $ 75 million as of december 2018 and $ 86 million as of december 2017 , and the notional amount of these derivatives and commitments was $ 1.09 billion as of december 2018 and $ 1.26 billion as of december 2017 .

the notional amounts of these derivatives and commitments are included in maximum exposure to loss in the nonconsolidated vie table in note 12 .
the table below presents information about the weighted average key economic assumptions used in measuring the fair value of mortgage-backed retained interests. .

in the table above : 2030 amounts do not reflect the benefit of other financial instruments that are held to mitigate risks inherent in these retained interests .
2030 changes in fair value based on an adverse variation in assumptions generally cannot be extrapolated because the relationship of the change in assumptions to the change in fair value is not usually linear .
2030 the impact of a change in a particular assumption is calculated independently of changes in any other assumption .

in practice , simultaneous changes in assumptions might magnify or counteract the sensitivities disclosed above .
2030 the constant prepayment rate is included only for positions for which it is a key assumption in the determination of fair value .
2030 the discount rate for retained interests that relate to u.s .
government agency-issued collateralized mortgage obligations does not include any credit loss .

expected credit loss assumptions are reflected in the discount rate for the remainder of retained interests .
the firm has other retained interests not reflected in the table above with a fair value of $ 133 million and a weighted average life of 4.2 years as of december 2018 , and a fair value of $ 56 million and a weighted average life of 4.5 years as of december 2017 .

due to the nature and fair value of certain of these retained interests , the weighted average assumptions for constant prepayment and discount rates and the related sensitivity to adverse changes are not meaningful as of both december 2018 and december 2017 .
the firm 2019s maximum exposure to adverse changes in the value of these interests is the carrying value of $ 133 million as of december 2018 and $ 56 million as of december 2017 .
note 12 .

note 12 .
variable interest entities a variable interest in a vie is an investment ( e.g. , debt or equity ) or other interest ( e.g. , derivatives or loans and lending commitments ) that will absorb portions of the vie 2019s expected losses and/or receive portions of the vie 2019s expected residual returns .

the firm 2019s variable interests in vies include senior and subordinated debt ; loans and lending commitments ; limited and general partnership interests ; preferred and common equity ; derivatives that may include foreign currency , equity and/or credit risk ; guarantees ; and certain of the fees the firm receives from investment funds .

certain interest rate , foreign currency and credit derivatives the firm enters into with vies are not variable interests because they create , rather than absorb , risk .
vies generally finance the purchase of assets by issuing debt and equity securities that are either collateralized by or indexed to the assets held by the vie .
the debt and equity securities issued by a vie may include tranches of varying levels of subordination .

the firm 2019s involvement with vies includes securitization of financial assets , as described in note 11 , and investments in and loans to other types of vies , as described below .
see note 11 for further information about securitization activities , including the definition of beneficial interests .
see note 3 for the firm 2019s consolidation policies , including the definition of a vie .
goldman sachs 2018 form 10-k 149

 |
| table | $ in millions                         | as of december 2018 | as of december 2017
------------------------------------- | ------------------- | -------------------
fair value of retained interests      | $ 3151              | $ 2071
weighted average life ( years )       | 7.2                 | 6.0
constant prepayment rate              | 11.9% ( 11.9 % )    | 9.4% ( 9.4 % )
impact of 10% ( 10 % ) adverse change | $ -27 ( 27 )        | $ -19 ( 19 )
impact of 20% ( 20 % ) adverse change | $ -53 ( 53 )        | $ -35 ( 35 )
discount rate                         | 4.7% ( 4.7 % )      | 4.2% ( 4.2 % )
impact of 10% ( 10 % ) adverse change | $ -75 ( 75 )        | $ -35 ( 35 )
impact of 20% ( 20 % ) adverse change | $ -147 ( 147 )      | $ -70 ( 70 ) |


| _id | dd4c1ca1c |
| title |  |
| text | issuer purchases of equity securities the following table provides information about our repurchases of common stock during the three-month period ended december 31 , 2007 .
period total number of shares purchased average price paid per total number of shares purchased as part of publicly announced program ( a ) maximum number of shares that may yet be purchased under the program ( b ) .

( a ) we repurchased a total of 2957300 shares of our common stock during the quarter ended december 31 , 2007 under a share repurchase program that we announced in october 2002 .
( b ) our board of directors has approved a share repurchase program for the repurchase of up to 128 million shares of our common stock from time-to-time , including 20 million shares approved for repurchase by our board of directors in september 2007 .

under the program , management has discretion to determine the number and price of the shares to be repurchased , and the timing of any repurchases , in compliance with applicable law and regulation .
as of december 31 , 2007 , we had repurchased a total of 95.3 million shares under the program .
in 2007 , we did not make any unregistered sales of equity securities.

 |
| table | period   | total number ofshares purchased | average pricepaid pershare | total number of sharespurchased as part ofpubliclyannouncedprogram ( a ) | maximum number ofshares that may yet bepurchased under theprogram ( b )
-------- | ------------------------------- | -------------------------- | ------------------------------------------------------------------------ | -----------------------------------------------------------------------
october  | 127100                          | $ 108.58                   | 127100                                                                   | 35573131
november | 1504300                         | 109.07                     | 1504300                                                                  | 34068831
december | 1325900                         | 108.78                     | 1325900                                                                  | 32742931 |


| _id | dd4c24a6e |
| title |  |
| text | economic useful life is the duration of time an asset is expected to be productively employed by us , which may be less than its physical life .
assumptions on the following factors , among others , affect the determination of estimated economic useful life : wear and tear , obsolescence , technical standards , contract life , market demand , competitive position , raw material availability , and geographic location .

the estimated economic useful life of an asset is monitored to determine its appropriateness , especially in light of changed business circumstances .
for example , changes in technology , changes in the estimated future demand for products , or excessive wear and tear may result in a shorter estimated useful life than originally anticipated .

in these cases , we would depreciate the remaining net book value over the new estimated remaining life , thereby increasing depreciation expense per year on a prospective basis .
likewise , if the estimated useful life is increased , the adjustment to the useful life decreases depreciation expense per year on a prospective basis .
we have numerous long-term customer supply contracts , particularly in the gases on-site business within the tonnage gases segment .

these contracts principally have initial contract terms of 15 to 20 years .
there are also long-term customer supply contracts associated with the tonnage gases business within the electronics and performance materials segment .
these contracts principally have initial terms of 10 to 15 years .
additionally , we have several customer supply contracts within the equipment and energy segment with contract terms that are primarily five to 10 years .

the depreciable lives of assets within this segment can be extended to 20 years for certain redeployable assets .
depreciable lives of the production assets related to long-term contracts are matched to the contract lives .
extensions to the contract term of supply frequently occur prior to the expiration of the initial term .

as contract terms are extended , the depreciable life of the remaining net book value of the production assets is adjusted to match the new contract term , as long as it does not exceed the physical life of the asset .
the depreciable lives of production facilities within the merchant gases segment are principally 15 years .
customer contracts associated with products produced at these types of facilities typically have a much shorter term .

the depreciable lives of production facilities within the electronics and performance materials segment , where there is not an associated long-term supply agreement , range from 10 to 15 years .
these depreciable lives have been determined based on historical experience combined with judgment on future assumptions such as technological advances , potential obsolescence , competitors 2019 actions , etc .

management monitors its assumptions and may potentially need to adjust depreciable life as circumstances change .
a change in the depreciable life by one year for production facilities within the merchant gases and electronics and performance materials segments for which there is not an associated long-term customer supply agreement would impact annual depreciation expense as summarized below : decrease life by 1 year increase life by 1 year .

impairment of assets plant and equipment plant and equipment held for use is grouped for impairment testing at the lowest level for which there is identifiable cash flows .
impairment testing of the asset group occurs whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable .

such circumstances would include a significant decrease in the market value of a long-lived asset grouping , a significant adverse change in the manner in which the asset grouping is being used or in its physical condition , a history of operating or cash flow losses associated with the use of the asset grouping , or changes in the expected useful life of the long-lived assets .

if such circumstances are determined to exist , an estimate of undiscounted future cash flows produced by that asset group is compared to the carrying value to determine whether impairment exists .
if an asset group is determined to be impaired , the loss is measured based on the difference between the asset group 2019s fair value and its carrying value .
an estimate of the asset group 2019s fair value is based on the discounted value of its estimated cash flows .

assets to be disposed of by sale are reported at the lower of carrying amount or fair value less cost to sell .
the assumptions underlying cash flow projections represent management 2019s best estimates at the time of the impairment review .
factors that management must estimate include industry and market conditions , sales volume and prices , costs to produce , inflation , etc .
changes in key assumptions or actual conditions that differ from estimates could result in an impairment charge .

we use reasonable and supportable assumptions when performing

 |
| table | | decrease lifeby 1 year | increase life by 1 year
------------------------------------- | ---------------------- | -----------------------
merchant gases                        | $ 32                   | $ -24 ( 24 )
electronics and performance materials | $ 12                   | $ -11 ( 11 ) |


| _id | dd4b87340 |
| title |  |
| text | management 2019s discussion and analysis 110 jpmorgan chase & co./2013 annual report 2012 compared with 2011 net loss was $ 2.0 billion , compared with a net income of $ 919 million in the prior year .
private equity reported net income of $ 292 million , compared with net income of $ 391 million in the prior year .

net revenue was $ 601 million , compared with $ 836 million in the prior year , due to lower unrealized and realized gains on private investments , partially offset by higher unrealized gains on public securities .
noninterest expense was $ 145 million , down from $ 238 million in the prior year .
treasury and cio reported a net loss of $ 2.1 billion , compared with net income of $ 1.3 billion in the prior year .

net revenue was a loss of $ 3.1 billion , compared with net revenue of $ 3.2 billion in the prior year .
the current year loss reflected $ 5.8 billion of losses incurred by cio from the synthetic credit portfolio for the six months ended june 30 , 2012 , and $ 449 million of losses from the retained index credit derivative positions for the three months ended september 30 , 2012 .
these losses were partially offset by securities gains of $ 2.0 billion .

the current year revenue reflected $ 888 million of extinguishment gains related to the redemption of trust preferred securities , which are included in all other income in the above table .
the extinguishment gains were related to adjustments applied to the cost basis of the trust preferred securities during the period they were in a qualified hedge accounting relationship .

net interest income was negative $ 683 million , compared with $ 1.4 billion in the prior year , primarily reflecting the impact of lower portfolio yields and higher deposit balances across the firm .
other corporate reported a net loss of $ 221 million , compared with a net loss of $ 821 million in the prior year .

noninterest revenue of $ 1.8 billion was driven by a $ 1.1 billion benefit for the washington mutual bankruptcy settlement , which is included in all other income in the above table , and a $ 665 million gain from the recovery on a bear stearns-related subordinated loan .
noninterest expense of $ 3.8 billion was up $ 1.0 billion compared with the prior year .
the current year included expense of $ 3.7 billion for additional litigation reserves , largely for mortgage-related matters .

the prior year included expense of $ 3.2 billion for additional litigation reserves .
treasury and cio overview treasury and cio are predominantly responsible for measuring , monitoring , reporting and managing the firm 2019s liquidity , funding and structural interest rate and foreign exchange risks , as well as executing the firm 2019s capital plan .

the risks managed by treasury and cio arise from the activities undertaken by the firm 2019s four major reportable business segments to serve their respective client bases , which generate both on- and off-balance sheet assets and liabilities .

cio achieves the firm 2019s asset-liability management objectives generally by investing in high-quality securities that are managed for the longer-term as part of the firm 2019s afs and htm investment securities portfolios ( the 201cinvestment securities portfolio 201d ) .
cio also uses derivatives , as well as securities that are not classified as afs or htm , to meet the firm 2019s asset-liability management objectives .

for further information on derivatives , see note 6 on pages 220 2013233 of this annual report .
for further information about securities not classified within the afs or htm portfolio , see note 3 on pages 195 2013215 of this annual report .
the treasury and cio investment securities portfolio primarily consists of u.s .
and non-u.s .
government securities , agency and non-agency mortgage-backed securities , other asset-backed securities , corporate debt securities and obligations of u.s .

states and municipalities .
at december 31 , 2013 , the total treasury and cio investment securities portfolio was $ 347.6 billion ; the average credit rating of the securities comprising the treasury and cio investment securities portfolio was aa+ ( based upon external ratings where available and where not available , based primarily upon internal ratings that correspond to ratings as defined by s&p and moody 2019s ) .

see note 12 on pages 249 2013254 of this annual report for further information on the details of the firm 2019s investment securities portfolio .
for further information on liquidity and funding risk , see liquidity risk management on pages 168 2013173 of this annual report .

for information on interest rate , foreign exchange and other risks , treasury and cio value-at-risk ( 201cvar 201d ) and the firm 2019s structural interest rate-sensitive revenue at risk , see market risk management on pages 142 2013148 of this annual report .
selected income statement and balance sheet data as of or for the year ended december 31 , ( in millions ) 2013 2012 2011 .

( a ) period-end investment securities included held-to-maturity balance of $ 24.0 billion at december 31 , 2013 .
held-to-maturity balances for the other periods were not material.

 |
| table | as of or for the year ended december 31 ( in millions )  | 2013   | 2012   | 2011
-------------------------------------------------------- | ------ | ------ | ------
securities gains                                         | $ 659  | $ 2028 | $ 1385
investment securities portfolio ( average )              | 353712 | 358029 | 330885
investment securities portfolio ( period 2013end ) ( a ) | 347562 | 365421 | 355605
mortgage loans ( average )                               | 5145   | 10241  | 13006
mortgage loans ( period-end )                            | 3779   | 7037   | 13375 |


| _id | dd4c4cd52 |
| title |  |
| text | abiomed , inc .
2005 annual report : financials page 15 notes to consolidated financial statements 2014 march 31 , 2005 in addition to compensation expense related to stock option grants , the pro forma compensation expense shown in the table above includes compensation expense related to stock issued under the company 2019s employee stock purchase plan of approximately $ 44000 , $ 19000 and $ 28000 for fiscal 2003 , 2004 and 2005 , respectively .

this pro forma compensation expense may not be representative of the amount to be expected in future years as pro forma compensation expense may vary based upon the number of options granted and shares purchased .
the pro forma tax effect of the employee compensation expense has not been considered due to the company 2019s reported net losses .
( t ) translation of foreign currencies the u.s .
dollar is the functional currency for the company 2019s single foreign subsidiary , abiomed b.v .

the financial statements of abiomed b.v .
are remeasured into u.s .
dollars using current rates of exchange for monetary assets and liabilities and historical rates of exchange for nonmonetary assets .
foreign exchange gains and losses are included in the results of operations in other income , net .
( u ) recent accounting pronouncements in november 2004 , the financial accounting standards board ( fasb ) issued sfas no .

151 , inventory costs ( fas 151 ) , which adopts wording from the international accounting standards board 2019s ( iasb ) standard no .
2 , inventories , in an effort to improve the comparability of international financial reporting .
the new standard indicates that abnormal freight , handling costs , and wasted materials ( spoilage ) are required to be treated as current period charges rather than as a portion of inventory cost .

additionally , the standard clarifies that fixed production overhead should be allocated based on the normal capacity of a production facility .
the statement is effective for the company beginning in the first quarter of fiscal year 2007 .
adoption is not expected to have a material impact on the company 2019s results of operations , financial position or cash flows .
in december 2004 , the fasb issued sfas no .

in december 2004 , the fasb issued sfas no .
153 , exchanges of nonmonetary assets ( fas 153 ) which eliminates the exception from fair value measurement for nonmonetary exchanges of similar productive assets and replaces it with a general exception from fair value measurement for exchanges of nonmonetary assets that do not have commercial substance .

the company is required to adopt fas 153 for nonmonetary asset exchanges occurring in the second quarter of fiscal year 2006 and its adoption is not expected to have a significant impact on the company 2019s consolidated financial statements .
in december 2004 the fasb issued a revised statement of financial accounting standard ( sfas ) no .
123 , share-based payment ( fas 123 ( r ) ) .

123 , share-based payment ( fas 123 ( r ) ) .
fas 123 ( r ) requires public entities to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award and recognize the cost over the period during which an employee is required to provide service in exchange for the award .

in april 2005 , the the fair value per share of the options granted during fiscal 2003 , 2004 and 2005 was computed as $ 1.69 , $ 1.53 and $ 3.94 , per share , respectively , and was calculated using the black-scholes option-pricing model with the following assumptions. .

 |
| table | | 2003             | 2004             | 2005
------------------------------ | ---------------- | ---------------- | ----------------
risk-free interest rate        | 2.92% ( 2.92 % ) | 2.56% ( 2.56 % ) | 3.87% ( 3.87 % )
expected dividend yield        | 2014             | 2014             | 2014
expected option term in years  | 5.0 years        | 5.3 years        | 7.5 years
assumed stock price volatility | 85% ( 85 % )     | 86% ( 86 % )     | 84% ( 84 % ) |


| _id | dd4c3af26 |
| title |  |
| text | management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) corporate and other expenses decreased slightly during 2012 by $ 4.7 to $ 137.3 compared to 2011 , primarily due to lower office and general expenses , partially offset by an increase in temporary help to support our information-technology system-upgrade initiatives .

liquidity and capital resources cash flow overview the following tables summarize key financial data relating to our liquidity , capital resources and uses of capital. .

1 reflects net income adjusted primarily for depreciation and amortization of fixed assets and intangible assets , amortization of restricted stock and other non-cash compensation , non-cash loss related to early extinguishment of debt , and deferred income taxes .
2 reflects changes in accounts receivable , expenditures billable to clients , other current assets , accounts payable and accrued liabilities .

operating activities net cash provided by operating activities during 2013 was $ 592.9 , which was an increase of $ 235.7 as compared to 2012 , primarily as a result of an improvement in working capital usage of $ 283.6 , offset by a decrease in net income .
due to the seasonality of our business , we typically generate cash from working capital in the second half of a year and use cash from working capital in the first half of a year , with the largest impacts in the first and fourth quarters .

the improvement in working capital in 2013 was impacted by our media businesses and an ongoing focus on working capital management at our agencies .
net cash provided by operating activities during 2012 was $ 357.2 , which was an increase of $ 83.7 as compared to 2011 , primarily as a result of a decrease in working capital usage of $ 66.2 .
the net working capital usage in 2012 was primarily impacted by our media businesses .

the timing of media buying on behalf of our clients affects our working capital and operating cash flow .
in most of our businesses , our agencies enter into commitments to pay production and media costs on behalf of clients .
to the extent possible we pay production and media charges after we have received funds from our clients .

the amounts involved substantially exceed our revenues , and primarily affect the level of accounts receivable , expenditures billable to clients , accounts payable and accrued liabilities .
our assets include both cash received and accounts receivable from clients for these pass-through arrangements , while our liabilities include amounts owed on behalf of clients to media and production suppliers .
our accrued liabilities are also affected by the timing of certain other payments .

for example , while annual cash incentive awards are accrued throughout the year , they are generally paid during the first quarter of the subsequent year .
investing activities net cash used in investing activities during 2013 primarily relates to payments for capital expenditures and acquisitions .
capital expenditures of $ 173.0 relate primarily to computer hardware and software and leasehold improvements .
we made payments of $ 61.5 related to acquisitions completed during 2013.

 |
| table | cash flow data                                                                           | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
---------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile net income to net cashprovided by operating activities1 | $ 598.4                        | $ 697.2                        | $ 735.7
net cash used in working capital b2                                                      | -9.6 ( 9.6 )                   | -293.2 ( 293.2 )               | -359.4 ( 359.4 )
changes in other non-current assets and liabilities using cash                           | 4.1                            | -46.8 ( 46.8 )                 | -102.8 ( 102.8 )
net cash provided by operating activities                                                | $ 592.9                        | $ 357.2                        | $ 273.5
net cash used in investing activities                                                    | -224.5 ( 224.5 )               | -210.2 ( 210.2 )               | -58.8 ( 58.8 )
net cash ( used in ) provided by financing activities                                    | -1212.3 ( 1212.3 )             | 131.3                          | -541.0 ( 541.0 ) |


| _id | dd4bc6950 |
| title |  |
| text | note 10 loan sales and securitizations loan sales we sell residential and commercial mortgage loans in loan securitization transactions sponsored by government national mortgage association ( gnma ) , fnma , and fhlmc and in certain instances to other third-party investors .
gnma , fnma , and the fhlmc securitize our transferred loans into mortgage-backed securities for sale into the secondary market .
generally , we do not retain any interest in the transferred loans other than mortgage servicing rights .

refer to note 9 goodwill and other intangible assets for further discussion on our residential and commercial mortgage servicing rights assets .
during 2009 , residential and commercial mortgage loans sold totaled $ 19.8 billion and $ 5.7 billion , respectively .
during 2008 , commercial mortgage loans sold totaled $ 3.1 billion .
there were no residential mortgage loans sales in 2008 as these activities were obtained through our acquisition of national city .

our continuing involvement in these loan sales consists primarily of servicing and limited repurchase obligations for loan and servicer breaches in representations and warranties .
generally , we hold a cleanup call repurchase option for loans sold with servicing retained to the other third-party investors .
in certain circumstances as servicer , we advance principal and interest payments to the gses and other third-party investors and also may make collateral protection advances .

our risk of loss in these servicing advances has historically been minimal .
we maintain a liability for estimated losses on loans expected to be repurchased as a result of breaches in loan and servicer representations and warranties .
we have also entered into recourse arrangements associated with commercial mortgage loans sold to fnma and fhlmc .
refer to note 25 commitments and guarantees for further discussion on our repurchase liability and recourse arrangements .

our maximum exposure to loss in our loan sale activities is limited to these repurchase and recourse obligations .
in addition , for certain loans transferred in the gnma and fnma transactions , we hold an option to repurchase individual delinquent loans that meet certain criteria .
without prior authorization from these gses , this option gives pnc the ability to repurchase the delinquent loan at par .

under gaap , once we have the unilateral ability to repurchase the delinquent loan , effective control over the loan has been regained and we are required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of our intent to repurchase the loan .
at december 31 , 2009 and december 31 , 2008 , the balance of our repurchase option asset and liability totaled $ 577 million and $ 476 million , respectively .

securitizations in securitizations , loans are typically transferred to a qualifying special purpose entity ( qspe ) that is demonstrably distinct from the transferor to transfer the risk from our consolidated balance sheet .
a qspe is a bankruptcy-remote trust allowed to perform only certain passive activities .
in addition , these entities are self-liquidating and in certain instances are structured as real estate mortgage investment conduits ( remics ) for tax purposes .

the qspes are generally financed by issuing certificates for various levels of senior and subordinated tranches .
qspes are exempt from consolidation provided certain conditions are met .
our securitization activities were primarily obtained through our acquisition of national city .
credit card receivables , automobile , and residential mortgage loans were securitized through qspes sponsored by ncb .

these qspes were financed primarily through the issuance and sale of beneficial interests to independent third parties and were not consolidated on our balance sheet at december 31 , 2009 or december 31 , 2008 .
however , see note 1 accounting policies regarding accounting guidance that impacts the accounting for these qspes effective january 1 , 2010 .
qualitative and quantitative information about the securitization qspes and our retained interests in these transactions follow .

the following summarizes the assets and liabilities of the securitization qspes associated with securitization transactions that were outstanding at december 31 , 2009. .

( a ) represents period-end outstanding principal balances of loans transferred to the securitization qspes .
credit card loans at december 31 , 2009 , the credit card securitization series 2005-1 , 2006-1 , 2007-1 , and 2008-3 were outstanding .
during the fourth quarter of 2009 , the 2008-1 and 2008-2 credit card securitization series matured .
our continuing involvement in the securitized credit card receivables consists primarily of servicing and our holding of certain retained interests .

servicing fees earned approximate current market rates for servicing fees ; therefore , no servicing asset or liability is recognized .
we hold a clean-up call repurchase option to the extent a securitization series extends past its scheduled note principal payoff date .

to the extent this occurs , the clean-up call option is triggered when the principal balance of the asset- backed notes of any series reaches 5% ( 5 % ) of the initial principal balance of the asset-backed notes issued at the securitization

 |
| table | in millions  | december 31 2009 credit card | december 31 2009 mortgage | december 31 2009 credit card | mortgage
------------ | ---------------------------- | ------------------------- | ---------------------------- | --------
assets ( a ) | $ 2368                       | $ 232                     | $ 2129                       | $ 319
liabilities  | 1622                         | 232                       | 1824                         | 319 |


| _id | dd4bdfb4e |
| title |  |
| text | part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities market information our common stock is listed and traded on the new york stock exchange under the symbol 201cipg 201d .
as of february 13 , 2019 , there were approximately 10000 registered holders of our outstanding common stock .

on february 13 , 2019 , we announced that our board of directors ( the 201cboard 201d ) had declared a common stock cash dividend of $ 0.235 per share , payable on march 15 , 2019 to holders of record as of the close of business on march 1 , 2019 .
although it is the board 2019s current intention to declare and pay future dividends , there can be no assurance that such additional dividends will in fact be declared and paid .

any and the amount of any such declaration is at the discretion of the board and will depend upon factors such as our earnings , financial position and cash requirements .
equity compensation plans see item 12 for information about our equity compensation plans .

transfer agent and registrar for common stock the transfer agent and registrar for our common stock is : computershare shareowner services llc 480 washington boulevard 29th floor jersey city , new jersey 07310 telephone : ( 877 ) 363-6398 sales of unregistered securities not applicable .
repurchases of equity securities the following table provides information regarding our purchases of our equity securities during the period from october 1 , 2018 to december 31 , 2018 .

total number of shares ( or units ) purchased 1 average price paid per share ( or unit ) 2 total number of shares ( or units ) purchased as part of publicly announced plans or programs 3 maximum number ( or approximate dollar value ) of shares ( or units ) that may yet be purchased under the plans or programs 3 .

1 the total number of shares of our common stock , par value $ 0.10 per share , repurchased were withheld under the terms of grants under employee stock- based compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares ( the 201cwithheld shares 201d ) .

2 the average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing the sum in the applicable period of the aggregate value of the tax withholding obligations by the sum of the number of withheld shares .
3 in february 2017 , the board authorized a share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock ( the 201c2017 share repurchase program 201d ) .

in february 2018 , the board authorized a share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock , which was in addition to any amounts remaining under the 2017 share repurchase program .

on july 2 , 2018 , in connection with the announcement of the acxiom acquisition , we announced that share repurchases will be suspended for a period of time in order to reduce the increased debt levels incurred in conjunction with the acquisition , and no shares were repurchased pursuant to the share repurchase programs in the periods reflected .
there are no expiration dates associated with the share repurchase programs.

 |
| table | | total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( orapproximate dollar value ) of shares ( or units ) that may yet be purchasedunder the plans orprograms3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 3824                                          | $ 23.30                                   | 2014                                                                                | $ 338421933
november 1 - 30 | 1750                                          | $ 23.77                                   | 2014                                                                                | $ 338421933
december 1 - 31 | 2014                                          | 2014                                      | 2014                                                                                | $ 338421933
total           | 5574                                          | $ 23.45                                   | 2014                                                                                | |


| _id | dd4c4749c |
| title |  |
| text | vornado realty trust notes to consolidated financial statements ( continued ) 17 .
leases as lessor : we lease space to tenants under operating leases .
most of the leases provide for the payment of fixed base rentals payable monthly in advance .
office building leases generally require the tenants to reimburse us for operating costs and real estate taxes above their base year costs .

shopping center leases provide for pass-through to tenants the tenant 2019s share of real estate taxes , insurance and maintenance .
shopping center leases also provide for the payment by the lessee of additional rent based on a percentage of the tenants 2019 sales .

as of december 31 , 2011 , future base rental revenue under non-cancelable operating leases , excluding rents for leases with an original term of less than one year and rents resulting from the exercise of renewal options , is as follows : ( amounts in thousands ) year ending december 31: .

these amounts do not include percentage rentals based on tenants 2019 sales .
these percentage rents approximated $ 8482000 , $ 7912000 and $ 8394000 , for the years ended december 31 , 2011 , 2010 and 2009 , respectively .
none of our tenants accounted for more than 10% ( 10 % ) of total revenues in any of the years ended december 31 , 2011 , 2010 and 2009 .

former bradlees locations pursuant to a master agreement and guaranty , dated may 1 , 1992 , we are due $ 5000000 per annum of additional rent from stop & shop which was allocated to certain bradlees former locations .
on december 31 , 2002 , prior to the expiration of the leases to which the additional rent was allocated , we reallocated this rent to other former bradlees leases also guaranteed by stop & shop .

stop & shop is contesting our right to reallocate and claims that we are no longer entitled to the additional rent .
on november 7 , 2011 , the court determined that we have a continuing right to allocate the annual rent to unexpired leases covered by the master agreement and guaranty and directed entry of a judgment in our favor ordering stop & shop to pay us the unpaid annual rent ( see note 20 2013 commitments and contingencies 2013 litigation ) .

as of december 31 , 2011 , we have a $ 41983000 receivable from stop and shop.

 |
| table | 2012       | $ 1807885
---------- | ---------
2013       | 1718403
2014       | 1609279
2015       | 1425804
2016       | 1232154
thereafter | 6045584 |


| _id | dd4c4e0f8 |
| title |  |
| text | part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the following table presents reported quarterly high and low per share sale prices of our common stock on the nyse for the years 2016 and 2015. .

on february 17 , 2017 , the closing price of our common stock was $ 108.11 per share as reported on the nyse .
as of february 17 , 2017 , we had 427195037 outstanding shares of common stock and 153 registered holders .
dividends as a reit , we must annually distribute to our stockholders an amount equal to at least 90% ( 90 % ) of our reit taxable income ( determined before the deduction for distributed earnings and excluding any net capital gain ) .

generally , we have distributed and expect to continue to distribute all or substantially all of our reit taxable income after taking into consideration our utilization of net operating losses ( 201cnols 201d ) .

we have two series of preferred stock outstanding , 5.25% ( 5.25 % ) mandatory convertible preferred stock , series a ( the 201cseries a preferred stock 201d ) , issued in may 2014 , with a dividend rate of 5.25% ( 5.25 % ) , and the 5.50% ( 5.50 % ) mandatory convertible preferred stock , series b ( the 201cseries b preferred stock 201d ) , issued in march 2015 , with a dividend rate of 5.50% ( 5.50 % ) .
dividends are payable quarterly in arrears , subject to declaration by our board of directors .

the amount , timing and frequency of future distributions will be at the sole discretion of our board of directors and will depend upon various factors , a number of which may be beyond our control , including our financial condition and operating cash flows , the amount required to maintain our qualification for taxation as a reit and reduce any income and excise taxes that we otherwise would be required to pay , limitations on distributions in our existing and future debt and preferred equity instruments

and future debt and preferred equity instruments , our ability to utilize nols to offset our distribution requirements , limitations on our ability to fund distributions using cash generated through our trss and other factors that our board of directors may deem relevant .

we have distributed an aggregate of approximately $ 3.2 billion to our common stockholders , including the dividend paid in january 2017 , primarily subject to taxation as ordinary income.

 |
| table | 2016                       | high     | low
-------------------------- | -------- | -------
quarter ended march 31     | $ 102.93 | $ 83.07
quarter ended june 30      | 113.63   | 101.87
quarter ended september 30 | 118.26   | 107.57
quarter ended december 31  | 118.09   | 99.72
2015                       | high     | low
quarter ended march 31     | $ 101.88 | $ 93.21
quarter ended june 30      | 98.64    | 91.99
quarter ended september 30 | 101.54   | 86.83
quarter ended december 31  | 104.12   | 87.23 |


| _id | dd4bb123a |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements as of december 31 , 2010 , total unrecognized compensation expense related to unvested restricted stock units granted under the 2007 plan was $ 57.5 million and is expected to be recognized over a weighted average period of approximately two years .
employee stock purchase plan 2014the company maintains an employee stock purchase plan ( 201cespp 201d ) for all eligible employees .

under the espp , shares of the company 2019s common stock may be purchased during bi-annual offering periods at 85% ( 85 % ) of the lower of the fair market value on the first or the last day of each offering period .
employees may purchase shares having a value not exceeding 15% ( 15 % ) of their gross compensation during an offering period and may not purchase more than $ 25000 worth of stock in a calendar year ( based on market values at the beginning of each offering period ) .

the offering periods run from june 1 through november 30 and from december 1 through may 31 of each year .
during the 2010 , 2009 and 2008 offering periods employees purchased 75354 , 77509 and 55764 shares , respectively , at weighted average prices per share of $ 34.16 , $ 23.91 and $ 30.08 , respectively .

the fair value of the espp offerings is estimated on the offering period commencement date using a black-scholes pricing model with the expense recognized over the expected life , which is the six month offering period over which employees accumulate payroll deductions to purchase the company 2019s common stock .
the weighted average fair value for the espp shares purchased during 2010 , 2009 and 2008 was $ 9.43 , $ 6.65 and $ 7.89 , respectively .

at december 31 , 2010 , 8.7 million shares remain reserved for future issuance under the plan .
key assumptions used to apply this pricing model for the years ended december 31 , are as follows: .

13 .
stockholders 2019 equity warrants 2014in august 2005 , the company completed its merger with spectrasite , inc .
and assumed outstanding warrants to purchase shares of spectrasite , inc .
common stock .
as of the merger completion date , each warrant was exercisable for two shares of spectrasite , inc .
common stock at an exercise price of $ 32 per warrant .
upon completion of the merger , each warrant to purchase shares of spectrasite , inc .

common stock automatically converted into a warrant to purchase shares of the company 2019s common stock , such that upon exercise of each warrant , the holder has a right to receive 3.575 shares of the company 2019s common stock in lieu of each share of spectrasite , inc .
common stock that would have been receivable under each assumed warrant prior to the merger .

upon completion of the company 2019s merger with spectrasite , inc. , these warrants were exercisable for approximately 6.8 million shares of common stock .
of these warrants , warrants to purchase approximately none and 1.7 million shares of common stock remained outstanding as of december 31 , 2010 and 2009 , respectively .
these warrants expired on february 10 , 2010 .

stock repurchase program 2014during the year ended december 31 , 2010 , the company repurchased an aggregate of approximately 9.3 million shares of its common stock for an aggregate of $ 420.8 million , including commissions and fees , of which $ 418.6 million was paid in cash prior to december 31 , 2010 and $ 2.2 million was included in accounts payable and accrued expenses in the accompanying consolidated balance sheet as of december 31 , 2010 , pursuant to its publicly announced stock repurchase program

its publicly announced stock repurchase program , as described below.

 |
| table | | 2010                                    | 2009                                    | 2008
-------------------------------------------------------------- | --------------------------------------- | --------------------------------------- | ---------------------------------------
range of risk-free interest rate                               | 0.22% ( 0.22 % ) - 0.23% ( 0.23 % )     | 0.29% ( 0.29 % ) - 0.44% ( 0.44 % )     | 1.99% ( 1.99 % ) - 3.28% ( 3.28 % )
weighted average risk-free interest rate                       | 0.22% ( 0.22 % )                        | 0.38% ( 0.38 % )                        | 2.58% ( 2.58 % )
expected life of shares                                        | 6 months                                | 6 months                                | 6 months
range of expected volatility of underlying stock price         | 35.26% ( 35.26 % ) - 35.27% ( 35.27 % ) | 35.31% ( 35.31 % ) - 36.63% ( 36.63 % ) | 27.85% ( 27.85 % ) - 28.51% ( 28.51 % )
weighted average expected volatility of underlying stock price | 35.26% ( 35.26 % )                      | 35.83% ( 35.83 % )                      | 28.51% ( 28.51 % )
expected annual dividends                                      | n/a                                     | n/a                                     | n/a |


| _id | dd4c4ca28 |
| title |  |
| text | awards .
awards granted under the 2006 plan prior to december 5 , 2008 became fully vested and nonforfeitable upon the closing of the merger .
awards may be granted under the 2006 plan , as amended and restated , after december 5 , 2008 only to employees and consultants of allied waste industries , inc .
and its subsidiaries who were not employed by republic services , inc .
prior to such date .

prior to such date .
at december 31 , 2009 , there were approximately 15.3 million shares of common stock reserved for future grants under the 2006 plan .
stock options we use a lattice binomial option-pricing model to value our stock option grants .
we recognize compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award , or to the employee 2019s retirement eligible date , if earlier .

expected volatility is based on the weighted average of the most recent one-year volatility and a historical rolling average volatility of our stock over the expected life of the option .
the risk-free interest rate is based on federal reserve rates in effect for bonds with maturity dates equal to the expected term of the option .
we use historical data to estimate future option exercises , forfeitures and expected life of the options .

when appropriate , separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes .
the weighted- average estimated fair values of stock options granted during the years ended december 31 , 2009 , 2008 and 2007 were $ 3.79 , $ 4.36 and $ 6.49 per option , respectively , which were calculated using the following weighted-average assumptions: .

republic services , inc .
and subsidiaries notes to consolidated financial statements , continued

 |
| table | | 2009             | 2008             | 2007
----------------------------- | ---------------- | ---------------- | ----------------
expected volatility           | 28.7% ( 28.7 % ) | 27.3% ( 27.3 % ) | 23.5% ( 23.5 % )
risk-free interest rate       | 1.4% ( 1.4 % )   | 1.7% ( 1.7 % )   | 4.8% ( 4.8 % )
dividend yield                | 3.1% ( 3.1 % )   | 2.9% ( 2.9 % )   | 1.5% ( 1.5 % )
expected life ( in years )    | 4.2              | 4.2              | 4.0
contractual life ( in years ) | 7                | 7                | 7
expected forfeiture rate      | 3.0% ( 3.0 % )   | 3.0% ( 3.0 % )   | 5.0% ( 5.0 % ) |


| _id | dd4bc82c8 |
| title |  |
| text | eog utilized average prices per acre from comparable market transactions and estimated discounted cash flows as the basis for determining the fair value of unproved and proved properties , respectively , received in non-cash property exchanges .
see note 10 .
fair value of debt .

see note 10 .
fair value of debt .
at december 31 , 2018 and 2017 , respectively , eog had outstanding $ 6040 million and $ 6390 million aggregate principal amount of senior notes , which had estimated fair values of approximately $ 6027 million and $ 6602 million , respectively .
the estimated fair value of debt was based upon quoted market prices and , where such prices were not available , other observable ( level 2 ) inputs regarding interest rates available to eog at year-end .
14 .

14 .
accounting for certain long-lived assets eog reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a depreciation , depletion and amortization group level to the unamortized capitalized cost of the asset .
the carrying values for assets determined to be impaired were adjusted to estimated fair value using the income approach described in the fair value measurement topic of the asc .

in certain instances , eog utilizes accepted offers from third-party purchasers as the basis for determining fair value .
during 2018 , proved oil and gas properties with a carrying amount of $ 139 million were written down to their fair value of $ 18 million , resulting in pretax impairment charges of $ 121 million .

during 2017 , proved oil and gas properties with a carrying amount of $ 370 million were written down to their fair value of $ 146 million , resulting in pretax impairment charges of $ 224 million .
impairments in 2018 , 2017 and 2016 included domestic legacy natural gas assets .
amortization and impairments of unproved oil and gas property costs , including amortization of capitalized interest , were $ 173 million , $ 211 million and $ 291 million during 2018 , 2017 and 2016 , respectively .
15 .

15 .
asset retirement obligations the following table presents the reconciliation of the beginning and ending aggregate carrying amounts of short-term and long-term legal obligations associated with the retirement of property , plant and equipment for the years ended december 31 , 2018 and 2017 ( in thousands ) : .

( 1 ) includes settlements related to asset sales .
the current and noncurrent portions of eog's asset retirement obligations are included in current liabilities - other and other liabilities , respectively , on the consolidated balance sheets.

 |
| table | | 2018             | 2017
-------------------------------------- | ---------------- | ----------------
carrying amount at beginning of period | $ 946848         | $ 912926
liabilities incurred                   | 79057            | 54764
liabilities settled ( 1 )              | -70829 ( 70829 ) | -61871 ( 61871 )
accretion                              | 36622            | 34708
revisions                              | -38932 ( 38932 ) | -9818 ( 9818 )
foreign currency translations          | 1611             | 16139
carrying amount at end of period       | $ 954377         | $ 946848
current portion                        | $ 26214          | $ 19259
noncurrent portion                     | $ 928163         | $ 927589 |


| _id | dd496f5c6 |
| title |  |
| text | performance graph comparison of five-year cumulative total return the following graph and table compare the cumulative total return on citi 2019s common stock , which is listed on the nyse under the ticker symbol 201cc 201d and held by 65691 common stockholders of record as of january 31 , 2018 , with the cumulative total return of the s&p 500 index and the s&p financial index over the five-year period through december 31 , 2017 .

the graph and table assume that $ 100 was invested on december 31 , 2012 in citi 2019s common stock , the s&p 500 index and the s&p financial index , and that all dividends were reinvested .
comparison of five-year cumulative total return for the years ended date citi s&p 500 financials .

 |
| table | date        | citi  | s&p 500 | s&p financials
----------- | ----- | ------- | --------------
31-dec-2012 | 100.0 | 100.0   | 100.0
31-dec-2013 | 131.8 | 132.4   | 135.6
31-dec-2014 | 137.0 | 150.5   | 156.2
31-dec-2015 | 131.4 | 152.6   | 153.9
31-dec-2016 | 152.3 | 170.8   | 188.9
31-dec-2017 | 193.5 | 208.1   | 230.9 |


| _id | dd4ba9e18 |
| title |  |
| text | notes to the consolidated financial statements competitive environment and general economic and business conditions , among other factors .
pullmantur is a brand targeted primarily at the spanish , portu- guese and latin american markets and although pullmantur has diversified its passenger sourcing over the past few years , spain still represents pullmantur 2019s largest market .

as previously disclosed , during 2012 european economies continued to demonstrate insta- bility in light of heightened concerns over sovereign debt issues as well as the impact of proposed auster- ity measures on certain markets .
the spanish econ- omy was more severely impacted than many other economies and there is significant uncertainty as to when it will recover .

in addition , the impact of the costa concordia incident has had a more lingering effect than expected and the impact in future years is uncertain .
these factors were identified in the past as significant risks which could lead to the impairment of pullmantur 2019s goodwill .
more recently , the spanish economy has progressively worsened and forecasts suggest the challenging operating environment will continue for an extended period of time .

the unemployment rate in spain reached 26% ( 26 % ) during the fourth quarter of 2012 and is expected to rise further in 2013 .
the international monetary fund , which had projected gdp growth of 1.8% ( 1.8 % ) a year ago , revised its 2013 gdp projections downward for spain to a contraction of 1.3% ( 1.3 % ) during the fourth quarter of 2012 and further reduced it to a contraction of 1.5% ( 1.5 % ) in january of 2013 .

during the latter half of 2012 new austerity measures , such as increases to the value added tax , cuts to benefits , the phasing out of exemptions and the suspension of government bonuses , were implemented by the spanish government .
we believe these austerity measures are having a larger impact on consumer confidence and discretionary spending than previously anticipated .
as a result , there has been a significant deterioration in bookings from guests sourced from spain during the 2013 wave season .

the combination of all of these factors has caused us to negatively adjust our cash flow projections , especially our closer-in net yield assumptions and the expectations regarding future capacity growth for the brand .
based on our updated cash flow projections , we determined the implied fair value of goodwill for the pullmantur reporting unit was $ 145.5 million and rec- ognized an impairment charge of $ 319.2 million .

this impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impairment of pullmantur related assets within our consolidated statements of comprehensive income ( loss ) .
there have been no goodwill impairment charges related to the pullmantur reporting unit in prior periods .
see note 13 .
fair value measurements and derivative instruments for further discussion .

if the spanish economy weakens further or recovers more slowly than contemplated or if the economies of other markets ( e.g .
france , brazil , latin america ) perform worse than contemplated in our discounted cash flow model , or if there are material changes to the projected future cash flows used in the impair- ment analyses , especially in net yields , an additional impairment charge of the pullmantur reporting unit 2019s goodwill may be required .
note 4 .

note 4 .
intangible assets intangible assets are reported in other assets in our consolidated balance sheets and consist of the follow- ing ( in thousands ) : .

during the fourth quarter of 2012 , we performed the annual impairment review of our trademarks and trade names using a discounted cash flow model and the relief-from-royalty method .
the royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry .
these trademarks and trade names relate to pullmantur and we have used a discount rate comparable to the rate used in valuing the pullmantur reporting unit in our goodwill impairment test .
as described in note 3 .

as described in note 3 .
goodwill , the continued deterioration of the spanish economy caused us to negatively adjust our cash flow projections for the pullmantur reporting unit , especially our closer-in net yield assumptions and the timing of future capacity growth for the brand .
based on our updated cash flow projections , we determined that the fair value of pullmantur 2019s trademarks and trade names no longer exceeded their carrying value .

accordingly , we recog- nized an impairment charge of approximately $ 17.4 million to write down trademarks and trade names to their fair value of $ 204.9 million .
this impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impairment of pullmantur related assets within our consolidated statements of comprehensive income ( loss ) .
see note 13 .
fair value measurements and derivative instruments for further discussion .

if the spanish economy weakens further or recovers more slowly than contemplated or if the economies of other markets ( e.g .
france , brazil , latin america ) 0494.indd 76 3/27/13 12:53 pm

 |
| table | | 2012             | 2011
-------------------------------------------------------------------------- | ---------------- | --------------
indefinite-life intangible asset 2014pullmantur trademarks and trade names | $ 218883         | $ 225679
impairment charge                                                          | -17356 ( 17356 ) | 2014
foreign currency translation adjustment                                    | 3339             | -6796 ( 6796 )
total                                                                      | $ 204866         | $ 218883 |


| _id | dd4c5bc8a |
| title |  |
| text | abiomed , inc .
and subsidiaries notes to consolidated financial statements 2014 ( continued ) note 14 .
income taxes ( continued ) and transition and defines the criteria that must be met for the benefits of a tax position to be recognized .
as a result of its adoption of fin no .
48 , the company has recorded the cumulative effect of the change in accounting principle of $ 0.3 million as a decrease to opening retained earnings and an increase to other long-term liabilities as of april 1 , 2007 .

this adjustment relates to state nexus for failure to file tax returns in various states for the years ended march 31 , 2003 , 2004 , and 2005 .
the company has initiated a voluntary disclosure plan .
the company has elected to recognize interest and/or penalties related to income tax matters in income tax expense in its consolidated statements of operations .

as of april 1 , 2007 , accrued interest was not significant and was recorded as part of the $ 0.3 million adjustment to the opening balance of retained earnings .
as of march 31 , 2008 , no penalties have been accrued which is consistent with the company 2019s discussions with states in connection with the company 2019s voluntary disclosure plan .
on a quarterly basis , the company accrues for the effects of uncertain tax positions and the related potential penalties and interest .

the company has recorded a liability for unrecognized tax benefits in other liabilities including accrued interest , of $ 0.2 million at march 31 , 2008 .
it is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the unrecognized tax positions will increase or decrease during the next 12 months ; however , it is not expected that the change will have a significant effect on the company 2019s results of operations or financial position .

a reconciliation of the beginning and ending balance of unrecognized tax benefits , excluding accrued interest recorded at march 31 , 2008 ( in thousands ) is as follows: .

the company and its subsidiaries are subject to u.s .
federal income tax , as well as income tax of multiple state and foreign jurisdictions .
the company has accumulated significant losses since its inception in 1981 .
all tax years remain subject to examination by major tax jurisdictions , including the federal government and the commonwealth of massachusetts .

however , since the company has net operating loss and tax credit carry forwards which may be utilized in future years to offset taxable income , those years may also be subject to review by relevant taxing authorities if the carry forwards are utilized .
note 15 .

commitments and contingencies the company 2019s acquisition of impella provides that abiomed may be required to make additional contingent payments to impella 2019s former shareholders as follows : 2022 upon fda approval of the impella 2.5 device , a payment of $ 5583333 , and 2022 upon fda approval of the impella 5.0 device , a payment of $ 5583333 if the average market price per share of abiomed 2019s common stock , as determined in accordance with the purchase agreement , as of the date of one of these

agreement , as of the date of one of these milestones is achieved is $ 22 or more , no additional contingent consideration will be required with respect to that milestone .

if the average market price is between $ 18 and $ 22 on the date of the company 2019s achievement of a milestone , the relevant milestone payment will be reduced ratably .
these milestone payments may be made , at the company 2019s option , with cash or stock or by a combination of cash or stock , except that no more than an aggregate of approximately $ 9.4 million of these milestone payments may be made in the form of stock .

if any of these contingent payments are made , they will result in an increase in the carrying value of goodwill .
in june 2008 , the company received 510 ( k ) clearance of its impella 2.5 , triggering an obligation to pay $ 5.6 million of contingent payments related to the may 2005 acquisition of impella .

these contingent payments may be made , at the company 2019s option , with cash , or stock or by a combination of cash or stock under circumstances described in the purchase agreement related to the company 2019s impella acquisition , except that approximately $ 1.8 million of the remaining $ 11.2 million potential contingent payments must be made in cash .
it is the company 2019s intent to satisfy the impella 2.5 510 ( k ) clearance contingent payment through issuance of common shares of company stock.

 |
| table | balance at april 1 2007                                                           | $ 224
--------------------------------------------------------------------------------- | ----------
reductions for tax positions for closing of the applicable statute of limitations | -56 ( 56 )
balance at march 31 2008                                                          | $ 168 |


| _id | dd4c13c64 |
| title |  |
| text | contributions and expected benefit payments the funding of our qualified defined benefit pension plans is determined in accordance with erisa , as amended by the ppa , and in a manner consistent with cas and internal revenue code rules .
there were no contributions to our legacy qualified defined benefit pension plans during 2016 .
we do not plan to make contributions to our legacy pension plans in 2017 because none are required using current assumptions including investment returns on plan assets .

we made $ 23 million in contributions during 2016 to our newly established sikorsky pension plan and expect to make $ 45 million in contributions to this plan during 2017 .
the following table presents estimated future benefit payments , which reflect expected future employee service , as of december 31 , 2016 ( in millions ) : .

defined contribution plans we maintain a number of defined contribution plans , most with 401 ( k ) features , that cover substantially all of our employees .
under the provisions of our 401 ( k ) plans , we match most employees 2019 eligible contributions at rates specified in the plan documents .
our contributions were $ 617 million in 2016 , $ 393 million in 2015 and $ 385 million in 2014 , the majority of which were funded in our common stock .

our defined contribution plans held approximately 36.9 million and 40.0 million shares of our common stock as of december 31 , 2016 and 2015 .
note 12 2013 stockholders 2019 equity at december 31 , 2016 and 2015 , our authorized capital was composed of 1.5 billion shares of common stock and 50 million shares of series preferred stock .

of the 290 million shares of common stock issued and outstanding as of december 31 , 2016 , 289 million shares were considered outstanding for consolidated balance sheet presentation purposes ; the remaining shares were held in a separate trust .
of the 305 million shares of common stock issued and outstanding as of december 31 , 2015 , 303 million shares were considered outstanding for consolidated balance sheet presentation purposes ; the remaining shares were held in a separate trust .

no shares of preferred stock were issued and outstanding at december 31 , 2016 or 2015 .
repurchases of common stock during 2016 , we repurchased 8.9 million shares of our common stock for $ 2.1 billion .
during 2015 and 2014 , we paid $ 3.1 billion and $ 1.9 billion to repurchase 15.2 million and 11.5 million shares of our common stock .
on september 22 , 2016 , our board of directors approved a $ 2.0 billion increase to our share repurchase program .

inclusive of this increase , the total remaining authorization for future common share repurchases under our program was $ 3.5 billion as of december 31 , 2016 .
as we repurchase our common shares , we reduce common stock for the $ 1 of par value of the shares repurchased , with the excess purchase price over par value recorded as a reduction of additional paid-in capital .

due to the volume of repurchases made under our share repurchase program , additional paid-in capital was reduced to zero , with the remainder of the excess purchase price over par value of $ 1.7 billion and $ 2.4 billion recorded as a reduction of retained earnings in 2016 and 2015 .
we paid dividends totaling $ 2.0 billion ( $ 6.77 per share ) in 2016 , $ 1.9 billion ( $ 6.15 per share ) in 2015 and $ 1.8 billion ( $ 5.49 per share ) in 2014 .

we have increased our quarterly dividend rate in each of the last three years , including a 10% ( 10 % ) increase in the quarterly dividend rate in the fourth quarter of 2016 .

we declared quarterly dividends of $ 1.65 per share during each of the first three quarters of 2016 and $ 1.82 per share during the fourth quarter of 2016 ; $ 1.50 per share during each of the first three quarters of 2015 and $ 1.65 per share during the fourth quarter of 2015 ; and $ 1.33 per share during each of the first three quarters of 2014 and $ 1.50 per share during the fourth quarter of 2014.

 |
| table | | 2017   | 2018   | 2019   | 2020   | 2021   | 2022 2013 2026
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | --------------
qualified defined benefit pension plans  | $ 2260 | $ 2340 | $ 2420 | $ 2510 | $ 2590 | $ 13920
retiree medical and life insurance plans | 180    | 180    | 190    | 190    | 190    | 870 |


| _id | dd4bd519e |
| title |  |
| text | entergy mississippi , inc .
management's financial discussion and analysis the net wholesale revenue variance is primarily due to lower profit on joint account sales and reduced capacity revenue from the municipal energy agency of mississippi .

gross operating revenues , fuel and purchased power expenses , and other regulatory charges gross operating revenues increased primarily due to an increase of $ 152.5 million in fuel cost recovery revenues due to higher fuel rates , partially offset by a decrease of $ 43 million in gross wholesale revenues due to a decrease in net generation and purchases in excess of decreased net area demand resulting in less energy available for resale sales coupled with a decrease in system agreement remedy receipts .

fuel and purchased power expenses increased primarily due to increases in the average market prices of natural gas and purchased power , partially offset by decreased demand and decreased recovery from customers of deferred fuel costs .
other regulatory charges increased primarily due to increased recovery through the grand gulf rider of grand gulf capacity costs due to higher rates and increased recovery of costs associated with the power management recovery rider .

there is no material effect on net income due to quarterly adjustments to the power management recovery rider .
2007 compared to 2006 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2007 to 2006 .
amount ( in millions ) .

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 volume/weather variance is primarily due to increased electricity usage primarily in the residential and commercial sectors , including the effect of more favorable weather on billed electric sales in 2007 compared to 2006 .
billed electricity usage increased 214 gwh .

billed electricity usage increased 214 gwh .
the increase in usage was partially offset by decreased usage in the industrial sector .
the transmission revenue variance is due to higher rates and the addition of new transmission customers in late 2006 .
the transmission equalization variance is primarily due to a revision made in 2006 of transmission equalization receipts among entergy companies .

the reserve equalization variance is primarily due to a revision in 2006 of reserve equalization payments among entergy companies due to a ferc ruling regarding the inclusion of interruptible loads in reserve

 |
| table | | amount ( in millions )
------------------------- | ----------------------
2006 net revenue          | $ 466.1
base revenue              | 7.9
volume/weather            | 4.5
transmission revenue      | 4.1
transmission equalization | 4.0
reserve equalization      | 3.8
attala costs              | -10.2 ( 10.2 )
other                     | 6.7
2007 net revenue          | $ 486.9 |


| _id | dd4bf04da |
| title |  |
| text | table of contents ( 4 ) the increase in cash flows was primarily due to the timing of inventory purchases and longer payment terms with certain vendors .
in order to manage our working capital and operating cash needs , we monitor our cash conversion cycle , defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable , based on a rolling three-month average .
components of our cash conversion cycle are as follows: .

( 1 ) represents the rolling three-month average of the balance of accounts receivable , net at the end of the period , divided by average daily net sales for the same three-month period .
also incorporates components of other miscellaneous receivables .
( 2 ) represents the rolling three-month average of the balance of merchandise inventory at the end of the period divided by average daily cost of sales for the same three-month period .

( 3 ) represents the rolling three-month average of the combined balance of accounts payable-trade , excluding cash overdrafts , and accounts payable-inventory financing at the end of the period divided by average daily cost of sales for the same three-month period .
the cash conversion cycle was 19 days at december 31 , 2017 and 2016 .
the increase in dso was primarily driven by higher net sales and related accounts receivable for third-party services such as saas , software assurance and warranties .

these services have an unfavorable impact on dso as the receivable is recognized on the consolidated balance sheet on a gross basis while the corresponding sales amount in the consolidated statement of operations is recorded on a net basis .

this also results in a favorable impact on dpo as the payable is recognized on the consolidated balance sheet without a corresponding cost of sales in the statement of operations because the cost paid to the vendor or third-party service provider is recorded as a reduction to net sales .
in addition , dpo also increased due to the mix of payables with certain vendors that have longer payment terms .
the cash conversion cycle was 19 and 21 days at december 31 , 2016 and 2015 , respectively .

the increase in dso was primarily driven by higher net sales and related accounts receivable for third-party services such as saas , software assurance and warranties .
these services have an unfavorable impact on dso as the receivable is recognized on the balance sheet on a gross basis while the corresponding sales amount in the statement of operations is recorded on a net basis .

these services have a favorable impact on dpo as the payable is recognized on the balance sheet without a corresponding cost of sale in the statement of operations because the cost paid to the vendor or third-party service provider is recorded as a reduction to net sales .
in addition to the impact of these services on dpo , dpo also increased due to the mix of payables with certain vendors that have longer payment terms .

investing activities net cash used in investing activities increased $ 15 million in 2017 compared to 2016 .
capital expenditures increased $ 17 million to $ 81 million from $ 64 million for 2017 and 2016 , respectively , primarily related to improvements to our information technology systems .
net cash used in investing activities decreased $ 289 million in 2016 compared to 2015 .
the decrease in cash used was primarily due to the completion of the acquisition of cdw uk in 2015 .

additionally , capital expenditures decreased $ 26 million to $ 64 million from $ 90 million for 2016 and 2015 , respectively , primarily due to spending for our new office location in 2015 .
financing activities net cash used in financing activities increased $ 514 million in 2017 compared to 2016 .

the increase was primarily driven by changes in accounts payable-inventory financing , which resulted in an increase in cash used for financing activities of $ 228 million and by share repurchases during 2017 , which resulted in an increase in cash used for financing activities of $ 167 million .

for more information on our share repurchase program , see part ii , item 5 , 201cmarket for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities . 201d the increase in cash used for accounts payable-inventory financing was primarily driven by the termination of one of our inventory financing agreements in the fourth quarter of 2016 , with amounts

 |
| table | ( in days )                                 | december 31 , 2017 | december 31 , 2016 | december 31 , 2015
------------------------------------------- | ------------------ | ------------------ | ------------------
days of sales outstanding ( dso ) ( 1 )     | 52                 | 51                 | 48
days of supply in inventory ( dio ) ( 2 )   | 12                 | 12                 | 13
days of purchases outstanding ( dpo ) ( 3 ) | -45 ( 45 )         | -44 ( 44 )         | -40 ( 40 )
cash conversion cycle                       | 19                 | 19                 | 21 |


| _id | dd4badcd4 |
| title |  |
| text | table of contents ( e ) other adjustments primarily include certain historical retention costs , unusual , non-recurring litigation matters , secondary-offering-related expenses and expenses related to the consolidation of office locations north of chicago .
during the year ended december 31 , 2013 , we recorded ipo- and secondary-offering related expenses of $ 75.0 million .

for additional information on the ipo- and secondary-offering related expenses , see note 10 ( stockholder 2019s equity ) to the accompanying consolidated financial statements .
( f ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 2019s financial results .

( 4 ) non-gaap net income excludes , among other things , charges related to the amortization of acquisition-related intangible assets , non-cash equity-based compensation , acquisition and integration expenses , and gains and losses from the extinguishment of long-term debt .
non-gaap net income is considered a non-gaap financial measure .

generally , a non-gaap financial measure is a numerical measure of a company 2019s performance , financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with gaap .
non-gaap measures used by us may differ from similar measures used by other companies , even when similar terms are used to identify such measures .

we believe that non-gaap net income provides meaningful information regarding our operating performance and cash flows including our ability to meet our future debt service , capital expenditures and working capital requirements .
the following unaudited table sets forth a reconciliation of net income to non-gaap net income for the periods presented: .

acquisition and integration expenses ( c ) 10.2 2014 2014 2014 2014 gain on remeasurement of equity investment ( d ) ( 98.1 ) 2014 2014 2014 2014 other adjustments ( e ) 3.7 ( 0.3 ) 61.2 ( 3.3 ) ( 15.6 ) aggregate adjustment for income taxes ( f ) ( 64.8 ) ( 103.0 ) ( 113.5 ) ( 71.6 ) ( 106.8 ) non-gaap net income ( g ) $ 503.5 $ 409.9 $ 314.3 $ 247.1 $ 198.8 ( a ) includes amortization expense for acquisition-related intangible assets , primarily customer relationships , customer contracts and trade names

, customer contracts and trade names .

( b ) represents our 35% ( 35 % ) share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to our acquisition of kelway .
( c ) primarily includes expenses related to the acquisition of kelway .
( d ) represents the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway .

( e ) primarily includes expenses related to the consolidation of office locations north of chicago and secondary- offering-related expenses .
amount in 2013 primarily relates to ipo- and secondary-offering related expenses .

( f ) based on a normalized effective tax rate of 38.0% ( 38.0 % ) ( 39.0% ( 39.0 % ) prior to the kelway acquisition ) , except for the non- cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway , which were tax effected at a rate of 35.4% ( 35.4 % ) .

the aggregate adjustment for income taxes also includes a $ 4.0 million deferred tax benefit recorded during the three months and year ended december 31 , 2015 as a result of a tax rate reduction in the united kingdom and additional tax expense during the year ended december 31 , 2015 of $ 3.3 million as a result of recording withholding tax on the unremitted earnings of our canadian subsidiary .
additionally , note that certain acquisition costs are non-deductible.

 |
| table | ( in millions )                                                       | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
--------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income                                                            | $ 403.1                        | $ 244.9                        | $ 132.8                        | $ 119.0                        | $ 17.1
amortization of intangibles ( a )                                     | 173.9                          | 161.2                          | 161.2                          | 163.7                          | 165.7
non-cash equity-based compensation                                    | 31.2                           | 16.4                           | 8.6                            | 22.1                           | 19.5
non-cash equity-based compensation related to equity investment ( b ) | 20.0                           | 2014                           | 2014                           | 2014                           | 2014
net loss on extinguishments of long-term debt                         | 24.3                           | 90.7                           | 64.0                           | 17.2                           | 118.9
acquisition and integration expenses ( c )                            | 10.2                           | 2014                           | 2014                           | 2014                           | 2014
gain on remeasurement of equity investment ( d )                      | -98.1 ( 98.1 )                 | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( e )                                               | 3.7                            | -0.3 ( 0.3 )                   | 61.2                           | -3.3 ( 3.3 )                   | -15.6 ( 15.6 )
aggregate adjustment for income taxes ( f )                           | -64.8 ( 64.8 )                 | -103.0 ( 103.0 )               | -113.5 ( 113.5 )               | -71.6 ( 71.6 )                 | -106.8 ( 106.8 )
non-gaap net income ( g )                                             | $ 503.5                        | $ 409.9                        | $ 314.3                        | $ 247.1                        | $ 198.8 |


| _id | dd4bc09b0 |
| title |  |
| text | management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) liquidity and capital resources cash flow overview the following tables summarize key financial data relating to our liquidity , capital resources and uses of capital. .

1 reflects net income adjusted primarily for depreciation and amortization of fixed assets and intangible assets , amortization of restricted stock and other non-cash compensation , net losses on sales of businesses and deferred income taxes .
2 reflects changes in accounts receivable , accounts receivable billable to clients , other current assets , accounts payable and accrued liabilities .

operating activities due to the seasonality of our business , we typically use cash from working capital in the first nine months of a year , with the largest impact in the first quarter , and generate cash from working capital in the fourth quarter , driven by the seasonally strong media spending by our clients .

quarterly and annual working capital results are impacted by the fluctuating annual media spending budgets of our clients as well as their changing media spending patterns throughout each year across various countries .
the timing of media buying on behalf of our clients across various countries affects our working capital and operating cash flow and can be volatile .
in most of our businesses , our agencies enter into commitments to pay production and media costs on behalf of clients .

to the extent possible , we pay production and media charges after we have received funds from our clients .
the amounts involved , which substantially exceed our revenues , primarily affect the level of accounts receivable , accounts payable , accrued liabilities and contract liabilities .
our assets include both cash received and accounts receivable from clients for these pass-through arrangements , while our liabilities include amounts owed on behalf of clients to media and production suppliers .

our accrued liabilities are also affected by the timing of certain other payments .
for example , while annual cash incentive awards are accrued throughout the year , they are generally paid during the first quarter of the subsequent year .
net cash provided by operating activities during 2018 was $ 565.1 , which was a decrease of $ 316.7 as compared to 2017 , primarily as a result of an increase in working capital usage of $ 436.4 .

working capital in 2018 was impacted by the spending levels of our clients as compared to 2017 .
the working capital usage in both periods was primarily attributable to our media businesses .
net cash provided by operating activities during 2017 was $ 881.8 , which was an increase of $ 369.0 as compared to 2016 , primarily as a result of an improvement in working capital usage of $ 415.6 .
working capital in 2017 benefited from the spending patterns of our clients compared to 2016 .

investing activities net cash used in investing activities during 2018 consisted of payments for acquisitions of $ 2309.8 , related mostly to the acxiom acquisition , and payments for capital expenditures of $ 177.1 , related mostly to leasehold improvements and computer hardware and software.

 |
| table | cash flow data                                                                 | years ended december 31 , 2018 | years ended december 31 , 2017 | years ended december 31 , 2016
------------------------------------------------------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile to net cash provided by operating activities1 | $ 1013.0                       | $ 852.1                        | $ 1018.6
net cash ( used in ) provided by working capital2                              | -431.1 ( 431.1 )               | 5.3                            | -410.3 ( 410.3 )
changes in other non-current assets and liabilities                            | -16.8 ( 16.8 )                 | 24.4                           | -95.5 ( 95.5 )
net cash provided by operating activities                                      | $ 565.1                        | $ 881.8                        | $ 512.8
net cash used in investing activities                                          | -2491.5 ( 2491.5 )             | -196.2 ( 196.2 )               | -263.9 ( 263.9 )
net cash provided by ( used in ) financing activities                          | 1853.2                         | -1004.9 ( 1004.9 )             | -666.4 ( 666.4 ) |


| _id | dd4c51ee2 |
| title |  |
| text | the company had capital loss carryforwards for federal income tax purposes of $ 3844 and $ 4357 at december 31 , 2013 and 2012 , respectively .
the company has recognized a full valuation allowance for the capital loss carryforwards because the company does not believe these losses are more likely than not to be recovered .
the company files income tax returns in the united states federal jurisdiction and various state and foreign jurisdictions .

with few exceptions , the company is no longer subject to u.s .
federal , state or local or non-u.s income tax examinations by tax authorities for years before 2007 .
the company has state income tax examinations in progress and does not expect material adjustments to result .

the patient protection and affordable care act ( the 201cppaca 201d ) became law on march 23 , 2010 , and the health care and education reconciliation act of 2010 became law on march 30 , 2010 , which makes various amendments to certain aspects of the ppaca ( together , the 201cacts 201d ) .

the ppaca effectively changes the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under medicare part d .

the acts effectively make the subsidy payments taxable in tax years beginning after december 31 , 2012 and as a result , the company followed its original accounting for the underfunded status of the other postretirement benefits for the medicare part d adjustment and recorded a reduction in deferred tax assets and an increase in its regulatory assets amounting to $ 6241 and $ 6432 at december 31 , 2013 and 2012 , respectively .

the following table summarizes the changes in the company 2019s gross liability , excluding interest and penalties , for unrecognized tax benefits: .

during the second quarter of 2013 , the company adopted updated income tax guidance , and as a result , reclassified as of december 31 , 2012 $ 74360 of unrecognized tax benefit from other long-term liabilities to deferred income taxes to conform to the current presentation in the accompanying consolidated balance sheets .

the total balance in the table above does not include interest and penalties of $ 242 and $ 260 as of december 31 , 2013 and 2012 , respectively , which is recorded as a component of income tax expense .
the majority of the increased tax position is attributable to temporary differences .
the increase in 2013 current period tax positions related primarily to the company 2019s change in tax accounting method filed in 2008 for repair and maintenance costs on its utility assets .

the company does not anticipate material changes to its unrecognized tax benefits within the next year .
if the company sustains all of its positions at december 31 , 2013 and 2012 , an unrecognized tax benefit of $ 7439 and $ 7532 , respectively , excluding interest and penalties , would impact the company 2019s effective tax rate.

 |
| table | balance at january 1 2012                              | $ 158578
------------------------------------------------------ | ----------------
increases in current period tax positions              | 40620
decreases in prior period measurement of tax positions | -18205 ( 18205 )
balance at december 31 2012                            | $ 180993
increases in current period tax positions              | 27229
decreases in prior period measurement of tax positions | -30275 ( 30275 )
balance at december 31 2013                            | $ 177947 |