| _id | dd4c5f3b2 |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) 3.00% ( 3.00 % ) convertible notes 2014during the years ended december 31 , 2008 and 2007 , the company issued an aggregate of approximately 8.9 million and 973 shares of common stock , respectively , upon conversion of $ 182.8 million and $ 0.02 million principal amount , respectively , of 3.00% ( 3.00 % ) notes .

pursuant to the terms of the indenture , holders of the 3.00% ( 3.00 % ) notes are entitled to receive 48.7805 shares of common stock for every $ 1000 principal amount of notes converted .

in connection with the conversions in 2008 , the company paid such holders an aggregate of approximately $ 4.7 million , calculated based on the discounted value of the future interest payments on the notes , which is reflected in loss on retirement of long-term obligations in the accompanying consolidated statement of operations for the year ended december 31 , 2008 .
14 .

impairments , net loss on sale of long-lived assets , restructuring and merger related expense the significant components reflected in impairments , net loss on sale of long-lived assets , restructuring and merger related expense in the accompanying consolidated statements of operations include the following : impairments and net loss on sale of long-lived assets 2014during the years ended december 31 , 2008 , 2007 and 2006 , the company recorded impairments and net loss on sale of long-lived assets (

and net loss on sale of long-lived assets ( primarily related to its rental and management segment ) of $ 11.2 million , $ 9.2 million and $ 2.6 million , respectively .

during the years ended december 31 , 2008 , 2007 and 2006 respectively , the company recorded net losses associated with the sales of certain non-core towers and other assets , as well as impairment charges to write-down certain assets to net realizable value after an indicator of impairment had been identified .

as a result , the company recorded net losses and impairments of approximately $ 10.5 million , $ 7.1 million and $ 2.0 million for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
the net loss for the year ended december 31 , 2008 is comprised of net losses from asset sales and other impairments of $ 10.7 million , offset by gains from asset sales of $ 0.2 million .

the net loss for the year ended december 31 , 2007 is comprised of net losses from asset sales and other impairments of $ 7.8 million , offset by gains from asset sales of $ 0.7 million .
merger related expense 2014during the year ended december 31 , 2005 , the company assumed certain obligations , as a result of the merger with spectrasite , inc. , primarily related to employee separation costs of former spectrasite employees .
severance payments made to former spectrasite , inc .

employees were subject to plans and agreements established by spectrasite , inc .
and assumed by the company in connection with the merger .
these costs were recognized as an assumed liability in the purchase price allocation .
in addition , the company also incurred certain merger related costs for additional employee retention and separation costs incurred during the year ended december 31 , 2006 .

the following table displays the activity with respect to this accrued liability for the years ended december 31 , 2008 , 2007 and 2006 ( in thousands ) : liability december 31 , expense 2006 cash payments other liability december 31 , expense 2007 cash payments other liability december 31 , expense 2008 cash payments other liability december 31 , employee separations .
.
.
.

.
.
.
$ 20963 $ 496 $ ( 12389 ) $ ( 1743 ) $ 7327 $ 633 $ ( 6110 ) $ ( 304 ) $ 1546 $ 284 $ ( 1901 ) $ 71 2014 as of december 31 , 2008 , the company had paid all of these merger related liabilities. .

american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) 3.00% ( 3.00 % ) convertible notes 2014during the years ended december 31 , 2008 and 2007 , the company issued an aggregate of approximately 8.9 million and 973 shares of common stock , respectively , upon conversion of $ 182.8 million and $ 0.02 million principal amount , respectively , of 3.00% ( 3.00 % ) notes .

pursuant to the terms of the indenture , holders of the 3.00% ( 3.00 % ) notes are entitled to receive 48.7805 shares of common stock for every $ 1000 principal amount of notes converted .

in connection with the conversions in 2008 , the company paid such holders an aggregate of approximately $ 4.7 million , calculated based on the discounted value of the future interest payments on the notes , which is reflected in loss on retirement of long-term obligations in the accompanying consolidated statement of operations for the year ended december 31 , 2008 .
14 .

impairments , net loss on sale of long-lived assets , restructuring and merger related expense the significant components reflected in impairments , net loss on sale of long-lived assets , restructuring and merger related expense in the accompanying consolidated statements of operations include the following : impairments and net loss on sale of long-lived assets 2014during the years ended december 31 , 2008 , 2007 and 2006 , the company recorded impairments and net loss on sale of long-lived assets (

and net loss on sale of long-lived assets ( primarily related to its rental and management segment ) of $ 11.2 million , $ 9.2 million and $ 2.6 million , respectively .

during the years ended december 31 , 2008 , 2007 and 2006 respectively , the company recorded net losses associated with the sales of certain non-core towers and other assets , as well as impairment charges to write-down certain assets to net realizable value after an indicator of impairment had been identified .

as a result , the company recorded net losses and impairments of approximately $ 10.5 million , $ 7.1 million and $ 2.0 million for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
the net loss for the year ended december 31 , 2008 is comprised of net losses from asset sales and other impairments of $ 10.7 million , offset by gains from asset sales of $ 0.2 million .

the net loss for the year ended december 31 , 2007 is comprised of net losses from asset sales and other impairments of $ 7.8 million , offset by gains from asset sales of $ 0.7 million .
merger related expense 2014during the year ended december 31 , 2005 , the company assumed certain obligations , as a result of the merger with spectrasite , inc. , primarily related to employee separation costs of former spectrasite employees .
severance payments made to former spectrasite , inc .

employees were subject to plans and agreements established by spectrasite , inc .
and assumed by the company in connection with the merger .
these costs were recognized as an assumed liability in the purchase price allocation .
in addition , the company also incurred certain merger related costs for additional employee retention and separation costs incurred during the year ended december 31 , 2006 .

the following table displays the activity with respect to this accrued liability for the years ended december 31 , 2008 , 2007 and 2006 ( in thousands ) : liability december 31 , expense 2006 cash payments other liability december 31 , expense 2007 cash payments other liability december 31 , expense 2008 cash payments other liability december 31 , employee separations .
.
.
.

.
.
.
$ 20963 $ 496 $ ( 12389 ) $ ( 1743 ) $ 7327 $ 633 $ ( 6110 ) $ ( 304 ) $ 1546 $ 284 $ ( 1901 ) $ 71 2014 as of december 31 , 2008 , the company had paid all of these merger related liabilities.

 |
| table | employee separations | liability as of december 31 2005 $ 20963 | 2006 expense $ 496 | 2006 cash payments $ -12389 ( 12389 ) | other $ -1743 ( 1743 ) | liability as of december 31 2006 $ 7327 | 2007 expense $ 633 | 2007 cash payments $ -6110 ( 6110 ) | other $ -304 ( 304 ) | liability as of december 31 2007 $ 1546 | 2008 expense $ 284 | 2008 cash payments $ -1901 ( 1901 ) | other $ 71 | liability as of december 31 2008 2014
-------------------- | ---------------------------------------- | ------------------ | ------------------------------------- | ---------------------- | --------------------------------------- | ------------------ | ----------------------------------- | -------------------- | --------------------------------------- | ------------------ | ----------------------------------- | ---------- | ------------------------------------- |


| _id | dd4bbf650 |
| title |  |
| text | the diluted earnings per share calculation excludes stock options , sars , restricted stock and units and performance units and stock that were anti-dilutive .
shares underlying the excluded stock options and sars totaled 2.6 million , 10.3 million and 10.2 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
for the year ended december 31 , 2016 , 4.5 million shares of restricted stock and restricted stock units and performance units and performance stock were excluded .
10 .

10 .
supplemental cash flow information net cash paid for interest and income taxes was as follows for the years ended december 31 , 2017 , 2016 and 2015 ( in thousands ) : .

eog's accrued capital expenditures at december 31 , 2017 , 2016 and 2015 were $ 475 million , $ 388 million and $ 416 million , respectively .
non-cash investing activities for the year ended december 31 , 2017 included non-cash additions of $ 282 million to eog's oil and gas properties as a result of property exchanges .

non-cash investing activities for the year ended december 31 , 2016 included $ 3834 million in non-cash additions to eog's oil and gas properties related to the yates transaction ( see note 17 ) .
11 .
business segment information eog's operations are all crude oil and natural gas exploration and production related .
the segment reporting topic of the asc establishes standards for reporting information about operating segments in annual financial statements .

operating segments are defined as components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker , or decision-making group , in deciding how to allocate resources and in assessing performance .
eog's chief operating decision-making process is informal and involves the chairman of the board and chief executive officer and other key officers .

this group routinely reviews and makes operating decisions related to significant issues associated with each of eog's major producing areas in the united states , trinidad , the united kingdom and china .
for segment reporting purposes , the chief operating decision maker considers the major united states producing areas to be one operating segment.

 |
| table | | 2017     | 2016               | 2015
------------------------------------ | -------- | ------------------ | --------
interest net of capitalized interest | $ 275305 | $ 252030           | $ 222088
income taxes net of refunds received | $ 188946 | $ -39293 ( 39293 ) | $ 41108 |


| _id | dd4bd76ec |
| title |  |
| text | humana inc .
notes to consolidated financial statements 2014 ( continued ) not be estimated based on observable market prices , and as such , unobservable inputs were used .
for auction rate securities , valuation methodologies include consideration of the quality of the sector and issuer , underlying collateral , underlying final maturity dates , and liquidity .

recently issued accounting pronouncements there are no recently issued accounting standards that apply to us or that will have a material impact on our results of operations , financial condition , or cash flows .
3 .
acquisitions on december 21 , 2012 , we acquired metropolitan health networks , inc. , or metropolitan , a medical services organization , or mso , that coordinates medical care for medicare advantage beneficiaries and medicaid recipients , primarily in florida .

we paid $ 11.25 per share in cash to acquire all of the outstanding shares of metropolitan and repaid all outstanding debt of metropolitan for a transaction value of $ 851 million , plus transaction expenses .
the preliminary fair values of metropolitan 2019s assets acquired and liabilities assumed at the date of the acquisition are summarized as follows : metropolitan ( in millions ) .

the goodwill was assigned to the health and well-being services segment and is not deductible for tax purposes .
the other intangible assets , which primarily consist of customer contracts and trade names , have a weighted average useful life of 8.4 years .

on october 29 , 2012 , we acquired a noncontrolling equity interest in mcci holdings , llc , or mcci , a privately held mso headquartered in miami , florida that coordinates medical care for medicare advantage and medicaid beneficiaries primarily in florida and texas .
the metropolitan and mcci transactions are expected to provide us with components of a successful integrated care delivery model that has demonstrated scalability to new markets .

a substantial portion of the revenues for both metropolitan and mcci are derived from services provided to humana medicare advantage members under capitation contracts with our health plans .
in addition , metropolitan and mcci provide services to medicare advantage and medicaid members under capitation contracts with third party health plans .

under these capitation agreements with humana and third party health plans , metropolitan and mcci assume financial risk associated with these medicare advantage and medicaid members.

 |
| table | | metropolitan ( in millions )
--------------------------- | ----------------------------
cash and cash equivalents   | $ 49
receivables net             | 28
other current assets        | 40
property and equipment      | 22
goodwill                    | 569
other intangible assets     | 263
other long-term assets      | 1
total assets acquired       | 972
current liabilities         | -22 ( 22 )
other long-term liabilities | -99 ( 99 )
total liabilities assumed   | -121 ( 121 )
net assets acquired         | $ 851 |


| _id | dd4bf1f10 |
| title |  |
| text | z i m m e r h o l d i n g s , i n c .
a n d s u b s i d i a r i e s 2 0 0 4 f o r m 1 0 - k contractual obligations the company has entered into contracts with various third parties in the normal course of business which will require future payments .
the following table illustrates the company 2019s contractual obligations : 2006 2008 2010 and and and contractual obligations total 2005 2007 2009 thereafter .

critical accounting estimates the financial results of the company are affected by the adequate provisions exist for income taxes for all periods and selection and application of accounting policies and methods .
jurisdictions subject to review or audit .
significant accounting policies which require management 2019s commitments and contingencies 2013 accruals for judgment are discussed below .

product liability and other claims are established with excess inventory and instruments 2013 the company internal and external legal counsel based on current must determine as of each balance sheet date how much , if information and historical settlement information for claims , any , of its inventory may ultimately prove to be unsaleable or related fees and for claims incurred but not reported .
an unsaleable at its carrying cost .

an unsaleable at its carrying cost .
similarly , the company must actuarial model is used by the company to assist also determine if instruments on hand will be put to management in determining an appropriate level of accruals productive use or remain undeployed as a result of excess for product liability claims .
historical patterns of claim loss supply .

historical patterns of claim loss supply .
reserves are established to effectively adjust development over time are statistically analyzed to arrive at inventory and instruments to net realizable value .
to factors which are then applied to loss estimates in the determine the appropriate level of reserves , the company actuarial model .

the amounts established represent evaluates current stock levels in relation to historical and management 2019s best estimate of the ultimate costs that it will expected patterns of demand for all of its products and incur under the various contingencies .
instrument systems and components .

instrument systems and components .
the basis for the goodwill and intangible assets 2013 the company determination is generally the same for all inventory and evaluates the carrying value of goodwill and indefinite life instrument items and categories except for work-in-progress intangible assets annually , or whenever events or inventory , which is recorded at cost .
obsolete or circumstances indicate the carrying value may not be discontinued items are generally destroyed and completely recoverable .

the company evaluates the carrying value of written off .
management evaluates the need for changes to finite life intangible assets whenever events or circumstances valuation reserves based on market conditions , competitive indicate the carrying value may not be recoverable .
offerings and other factors on a regular basis .

offerings and other factors on a regular basis .
significant assumptions are required to estimate the fair income taxes 2013 the company estimates income tax value of goodwill and intangible assets , most notably expense and income tax liabilities and assets by taxable estimated future cash flows generated by these assets .
jurisdiction .

jurisdiction .
realization of deferred tax assets in each taxable changes to these assumptions could result in the company jurisdiction is dependent on the company 2019s ability to being required to record impairment charges on these assets .
generate future taxable income sufficient to realize the benefits .

the company evaluates deferred tax assets on an recent accounting pronouncements ongoing basis and provides valuation allowances if it is information about recent accounting pronouncements is determined to be 2018 2018more likely than not 2019 2019 that the deferred tax included in note 2 to the consolidated financial statements , benefit will not be realized .
federal income taxes are which are included herein under item 8 .

provided on the portion of the income of foreign subsidiaries that is expected to be remitted to the u.s .
the company operates within numerous taxing jurisdictions .
the company is subject to regulatory review or audit in virtually all of those jurisdictions and those reviews and audits may require extended periods of time to resolve .

the company makes use of all available information and makes reasoned judgments regarding matters requiring interpretation in establishing tax expense , liabilities and reserves .
the company believes

 |
| table | contractual obligations       | total    | 2005   | 2006 and 2007 | 2008 and 2009 | 2010 and thereafter
----------------------------- | -------- | ------ | ------------- | ------------- | -------------------
debt obligations              | $ 651.5  | $ 27.5 | $ 449.0       | $ 175.0       | $ 2013
operating leases              | 103.0    | 23.5   | 34.2          | 17.7          | 27.6
purchase obligations          | 16.1     | 15.5   | 0.6           | 2013          | 2013
other long-term liabilities   | 420.9    | 2013   | 135.7         | 30.5          | 254.7
total contractual obligations | $ 1191.5 | $ 66.5 | $ 619.5       | $ 223.2       | $ 282.3 |


| _id | dd4c4c438 |
| title |  |
| text | management 2019s discussion and analysis the table below presents a reconciliation of our common shareholders 2019 equity to the estimated basel iii advanced cet1 on a fully phased-in basis .
$ in millions december .

1 .
this deduction , which represents the fully phased-in requirement , is the amount by which our investments in the capital of nonconsolidated financial institutions exceed certain prescribed thresholds .
during both the transitional period and thereafter , no deduction will be required if the applicable proportion of our investments in the capital of nonconsolidated financial institutions falls below the prescribed thresholds .
2 .

2 .
principally includes credit valuation adjustments on derivative liabilities and debt valuation adjustments , as well as other required credit risk- based deductions .
in addition , beginning with the first quarter of 2015 , subject to transitional provisions , we will also be required to disclose ratios calculated under the standardized approach .

our estimated cet1 ratio under the standardized approach ( standardized cet1 ratio ) on a fully phased-in basis was approximately 60 basis points lower than our estimated basel iii advanced cet1 ratio in the table above .
both the basel iii advanced cet1 ratio and the standardized cet1 ratio are subject to transitional provisions .

reflecting the transitional provisions that became effective january 1 , 2014 , our estimated basel iii advanced cet1 ratio and our estimated standardized cet1 ratio are approximately 150 basis points higher than the respective cet1 ratios on a fully phased-in basis as of december 2013 .
effective january 1 , 2014 , group inc . 2019s capital and leverage ratios are calculated under , and subject to the minimums as defined in , the revised capital framework .

the changes to the definition of capital and minimum ratios , subject to transitional provisions , were effective beginning january 1 , 2014 .
rwas are based on basel i adjusted , as defined in note 20 to the consolidated financial statements .
the firm will transition to basel iii beginning on april 1 , 2014 .

including the impact of the changes to the definition of regulatory capital and reflecting the transitional provisions effective in 2014 , our estimated cet1 ratio ( cet1 to rwas on a basel i adjusted basis ) as of december 2013 would have been essentially unchanged as compared to our tier 1 common ratio under basel i .
regulatory leverage ratios .
the revised capital framework increased the minimum tier 1 leverage ratio applicable to us from 3% ( 3 % ) to 4% ( 4 % ) effective january 1 , 2014 .

in addition , the revised capital framework will introduce a new tier 1 supplementary leverage ratio ( supplementary leverage ratio ) for advanced approach banking organizations .
the supplementary leverage ratio compares tier 1 capital ( as defined under the revised capital framework ) to a measure of leverage exposure , defined as the sum of the firm 2019s assets less certain cet1 deductions plus certain off-balance-sheet exposures , including a measure of derivatives exposures and commitments .

the revised capital framework requires a minimum supplementary leverage ratio of 3% ( 3 % ) , effective january 1 , 2018 , but with disclosure required beginning in the first quarter of 2015 .
in addition , subsequent to the approval of the revised capital framework , the agencies issued a proposal to increase the minimum supplementary leverage ratio requirement for the largest u.s .
banks ( those deemed to be global systemically important banking institutions ( g-sibs ) under the basel g-sib framework ) .

these proposals would require the firm and other g-sibs to meet a 5% ( 5 % ) supplementary leverage ratio ( comprised of the minimum requirement of 3% ( 3 % ) plus a 2% ( 2 % ) buffer ) .
as of december 2013 , our estimated supplementary leverage ratio based on the revised capital framework approximates this proposed minimum .

in addition , the basel committee recently finalized revisions that would increase the size of the leverage exposure for purposes of the supplementary leverage ratio , but would retain a minimum supplementary leverage ratio requirement of 3% ( 3 % ) .
it is not known with certainty at this point whether the u.s .
regulators will adopt this revised definition of leverage into their rules and proposals for the supplementary leverage ratio .
70 goldman sachs 2013 annual report

 |
| table | $ in millions                                                               | as of december 2013
--------------------------------------------------------------------------- | -------------------
common shareholders 2019 equity                                             | $ 71267
goodwill                                                                    | -3705 ( 3705 )
identifiable intangible assets                                              | -671 ( 671 )
deferred tax liabilities                                                    | 908
goodwill and identifiable intangible assets net of deferred tax liabilities | -3468 ( 3468 )
deductions for investments in nonconsolidated financial institutions1       | -9091 ( 9091 )
otheradjustments2                                                           | -489 ( 489 )
basel iii cet1                                                              | $ 58219
basel iii advanced rwas                                                     | $ 594662
basel iii advanced cet1 ratio                                               | 9.8% ( 9.8 % ) |


| _id | dd4bb7108 |
| title |  |
| text | the changes in the gross amount of unrecognized tax benefits for the year ended december 29 , 2007 are as follows: .

as of december 29 , 2007 , $ 228.4 million of unrecognized tax benefits would , if recognized , reduce the effective tax rate , as compared to $ 232.1 million as of december 31 , 2006 , the first day of cadence 2019s fiscal year .

the total amounts of interest and penalties recognized in the consolidated income statement for the year ended december 29 , 2007 resulted in net tax benefits of $ 11.1 million and $ 0.4 million , respectively , primarily due to the effective settlement of tax audits during the year .

the total amounts of gross accrued interest and penalties recognized in the consolidated balance sheets as of december 29 , 2007 , were $ 47.9 million and $ 9.7 million , respectively as compared to $ 65.8 million and $ 10.1 million , respectively as of december 31 , 2006 .
note 9 .

note 9 .
acquisitions for each of the acquisitions described below , the results of operations and the estimated fair value of the assets acquired and liabilities assumed have been included in cadence 2019s consolidated financial statements from the date of the acquisition .
comparative pro forma financial information for all 2007 , 2006 and 2005 acquisitions have not been presented because the results of operations were not material to cadence 2019s consolidated financial statements .

2007 acquisitions during 2007 , cadence acquired invarium , inc. , a san jose-based developer of advanced lithography-modeling and pattern-synthesis technology , and clear shape technologies , inc. , a san jose-based design for manufacturing technology company specializing in design-side solutions to minimize yield loss for advanced semiconductor integrated circuits .

cadence acquired these two companies for an aggregate purchase price of $ 75.5 million , which included the payment of cash , the fair value of assumed options and acquisition costs .
the $ 45.7 million of goodwill recorded in connection with these acquisitions is not expected to be deductible for income tax purposes .

prior to acquiring clear shape technologies , inc. , cadence had an investment of $ 2.0 million in the company , representing a 12% ( 12 % ) ownership interest , which had been accounted for under the cost method of accounting .
in accordance with sfas no .
141 , 201cbusiness combinations , 201d cadence accounted for this acquisition as a step acquisition .

subsequent adjustments to the purchase price of these acquired companies are included in the 201cother 201d line of the changes of goodwill table in note 10 below .
2006 acquisition in march 2006 , cadence acquired a company for an aggregate initial purchase price of $ 25.8 million , which included the payment of cash , the fair value of assumed options and acquisition costs .

the preliminary allocation of the purchase price was recorded as $ 17.4 million of goodwill , $ 9.4 million of identifiable intangible assets and $ ( 1.0 ) million of net liabilities .
the $ 17.4 million of goodwill recorded in connection with this acquisition is not expected to be deductible for income tax purposes .
subsequent adjustments to the purchase price of this acquired company are included in the 201cother 201d line of the changes of goodwill table in note 10 below.

 |
| table | | ( in thousands )
--------------------------------------------------------------------------------------------------------------------- | ----------------
balance as of december 31 2006                                                                                | $ 337226
gross amount of the decreases in unrecognized tax benefits of tax positions taken during a prior year                 | -31608 ( 31608 )
gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | 7764
amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities                      | -6001 ( 6001 )
reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations             | -511 ( 511 )
balance as of december 29 2007                                                                                | $ 306870 |


| _id | dd4bec0ec |
| title |  |
| text | 18 2015 annual report performance graph the following chart presents a comparison for the five-year period ended june 30 , 2015 , of the market performance of the company 2019s common stock with the s&p 500 index and an index of peer companies selected by the company : comparison of 5 year cumulative total return among jack henry & associates , inc. , the s&p 500 index , and a peer group the following information depicts a line graph with the following values: .

this comparison assumes $ 100 was invested on june 30 , 2010 , and assumes reinvestments of dividends .
total returns are calculated according to market capitalization of peer group members at the beginning of each period .
peer companies selected are in the business of providing specialized computer software , hardware and related services to financial institutions and other businesses .

companies in the peer group are aci worldwide , inc. , bottomline technology , inc. , broadridge financial solutions , cardtronics , inc. , convergys corp. , corelogic , inc. , dst systems , inc. , euronet worldwide , inc. , fair isaac corp. , fidelity national information services , inc. , fiserv , inc. , global payments , inc. , heartland payment systems , inc. , moneygram international , inc. , ss&c technologies holdings , inc. , total systems services , inc. , tyler technologies , inc. , verifone

, inc. , tyler technologies , inc. , verifone systems , inc. , and wex , inc. .

micros systems , inc .
was removed from the peer group as it was acquired in september 2014.

 |
| table | | 2010   | 2011   | 2012   | 2013   | 2014   | 2015
---------- | ------ | ------ | ------ | ------ | ------ | ------
jkhy       | 100.00 | 127.44 | 148.62 | 205.60 | 263.21 | 290.88
peer group | 100.00 | 136.78 | 148.10 | 174.79 | 239.10 | 301.34
s&p 500    | 100.00 | 130.69 | 137.81 | 166.20 | 207.10 | 222.47 |


| _id | dd4bbce6e |
| title |  |
| text | the goldman sachs group , inc .
and subsidiaries management 2019s discussion and analysis 2018 versus 2017 .
provision for credit losses in the consolidated statements of earnings was $ 674 million for 2018 , compared with $ 657 million for 2017 , as the higher provision for credit losses primarily related to consumer loan growth in 2018 was partially offset by an impairment of approximately $ 130 million on a secured loan in 2017 .
2017 versus 2016 .

2017 versus 2016 .
provision for credit losses in the consolidated statements of earnings was $ 657 million for 2017 , compared with $ 182 million for 2016 , reflecting an increase in impairments , which included an impairment of approximately $ 130 million on a secured loan in 2017 , and higher provision for credit losses primarily related to consumer loan growth .
operating expenses our operating expenses are primarily influenced by compensation , headcount and levels of business activity .

compensation and benefits includes salaries , discretionary compensation , amortization of equity awards and other items such as benefits .
discretionary compensation is significantly impacted by , among other factors , the level of net revenues , overall financial performance , prevailing labor markets , business mix , the structure of our share-based compensation programs and the external environment .

in addition , see 201cuse of estimates 201d for further information about expenses that may arise from litigation and regulatory proceedings .
the table below presents operating expenses by line item and headcount. .

in the table above , the following reclassifications have been made to previously reported amounts to conform to the current presentation : 2030 regulatory-related fees that are paid to exchanges are now reported in brokerage , clearing , exchange and distribution fees .
previously such amounts were reported in other expenses .
2030 headcount consists of our employees , and excludes consultants and temporary staff previously reported as part of total staff .

as a result , expenses related to these consultants and temporary staff are now reported in professional fees .
previously such amounts were reported in compensation and benefits expenses .
2018 versus 2017 .
operating expenses in the consolidated statements of earnings were $ 23.46 billion for 2018 , 12% ( 12 % ) higher than 2017 .
our efficiency ratio ( total operating expenses divided by total net revenues ) for 2018 was 64.1% ( 64.1 % ) , compared with 64.0% ( 64.0 % ) for 2017 .

the increase in operating expenses compared with 2017 was primarily due to higher compensation and benefits expenses , reflecting improved operating performance , and significantly higher net provisions for litigation and regulatory proceedings .
brokerage , clearing , exchange and distribution fees were also higher , reflecting an increase in activity levels , and technology expenses increased , reflecting higher expenses related to computing services .

in addition , expenses related to consolidated investments and our digital lending and deposit platform increased , with the increases primarily in depreciation and amortization expenses , market development expenses and other expenses .
the increase compared with 2017 also included $ 297 million related to the recently adopted revenue recognition standard .
see note 3 to the consolidated financial statements for further information about asu no .

2014-09 , 201crevenue from contracts with customers ( topic 606 ) . 201d net provisions for litigation and regulatory proceedings for 2018 were $ 844 million compared with $ 188 million for 2017 .
2018 included a $ 132 million charitable contribution to goldman sachs gives , our donor-advised fund .
compensation was reduced to fund this charitable contribution to goldman sachs gives .

we ask our participating managing directors to make recommendations regarding potential charitable recipients for this contribution .
as of december 2018 , headcount increased 9% ( 9 % ) compared with december 2017 , reflecting an increase in technology professionals and investments in new business initiatives .
2017 versus 2016 .
operating expenses in the consolidated statements of earnings were $ 20.94 billion for 2017 , 3% ( 3 % ) higher than 2016 .

our efficiency ratio for 2017 was 64.0% ( 64.0 % ) compared with 65.9% ( 65.9 % ) for 2016 .
the increase in operating expenses compared with 2016 was primarily driven by slightly higher compensation and benefits expenses and our investments to fund growth .
higher expenses related to consolidated investments and our digital lending and deposit platform were primarily included in depreciation and amortization expenses , market development expenses and other expenses .

in addition , technology expenses increased , reflecting higher expenses related to cloud-based services and software depreciation , and professional fees increased , primarily related to consulting costs .
these increases were partially offset by lower net provisions for litigation and regulatory proceedings , and lower occupancy expenses ( primarily related to exit costs in 2016 ) .
54 goldman sachs 2018 form 10-k

 |
| table | $ in millions                                     | year ended december 2018 | year ended december 2017 | year ended december 2016
------------------------------------------------- | ------------------------ | ------------------------ | ------------------------
compensation and benefits                         | $ 12328                  | $ 11653                  | $ 11448
brokerage clearing exchange and distribution fees | 3200                     | 2876                     | 2823
market development                                | 740                      | 588                      | 457
communications and technology                     | 1023                     | 897                      | 809
depreciation and amortization                     | 1328                     | 1152                     | 998
occupancy                                         | 809                      | 733                      | 788
professional fees                                 | 1214                     | 1165                     | 1081
other expenses                                    | 2819                     | 1877                     | 1900
total operating expenses                          | $ 23461                  | $ 20941                  | $ 20304
headcount atperiod-end                            | 36600                    | 33600                    | 32400 |


| _id | dd4bbe2a0 |
| 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 77787 common stockholders of record as of january 31 , 2017 , 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 , 2016 .

the graph and table assume that $ 100 was invested on december 31 , 2011 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-2011 | 100.0 | 100.0   | 100.0
31-dec-2012 | 150.6 | 116.0   | 128.8
31-dec-2013 | 198.5 | 153.6   | 174.7
31-dec-2014 | 206.3 | 174.6   | 201.3
31-dec-2015 | 197.8 | 177.0   | 198.2
31-dec-2016 | 229.3 | 198.2   | 243.4 |


| _id | dd4bc000a |
| title |  |
| text | lockheed martin corporation management 2019s discussion and analysis of financial condition and results of operations december 31 , 2002 space systems space systems 2019 operating results included the following : ( in millions ) 2002 2001 2000 .

net sales for space systems increased by 8% ( 8 % ) in 2002 compared to 2001 .
the increase in sales for 2002 resulted from higher volume in government space of $ 370 million and commercial space of $ 180 million .
in government space , increases of $ 470 million in government satellite programs and $ 130 million in ground systems activities more than offset volume declines of $ 175 million on government launch vehi- cles and $ 55 million on strategic missile programs .

the increase in commercial space sales is primarily attributable to an increase in launch vehicle activities , with nine commercial launches during 2002 compared to six in 2001 .
net sales for the segment decreased by 7% ( 7 % ) in 2001 com- pared to 2000 .
the decrease in sales for 2001 resulted from volume declines in commercial space of $ 560 million , which more than offset increases in government space of $ 60 million .

in commercial space , sales declined due to volume reductions of $ 480 million in commercial launch vehicle activities and $ 80 million in satellite programs .
there were six launches in 2001 compared to 14 launches in 2000 .
the increase in gov- ernment space resulted from a combined increase of $ 230 mil- lion related to higher volume on government satellite programs and ground systems activities .

these increases were partially offset by a $ 110 million decrease related to volume declines in government launch vehicle activity , primarily due to program maturities , and by $ 50 million due to the absence in 2001 of favorable adjustments recorded on the titan iv pro- gram in 2000 .
operating profit for the segment increased 23% ( 23 % ) in 2002 as compared to 2001 , mainly driven by the commercial space business .

reduced losses in commercial space during 2002 resulted in increased operating profit of $ 90 million when compared to 2001 .
commercial satellite manufacturing losses declined $ 100 million in 2002 as operating performance improved and satellite deliveries increased .
in the first quarter of 2001 , a $ 40 million loss provision was recorded on certain commercial satellite manufacturing contracts .

due to the industry-wide oversupply and deterioration of pricing in the commercial launch market , financial results on commercial launch vehicles continue to be challenging .
during 2002 , this trend led to a decline in operating profit of $ 10 million on commercial launch vehicles when compared to 2001 .

this decrease was primarily due to lower profitability of $ 55 mil- lion on the three additional launches in the current year , addi- tional charges of $ 60 million ( net of a favorable contract adjustment of $ 20 million ) for market and pricing pressures and included the adverse effect of a $ 35 million adjustment for commercial launch vehicle contract settlement costs .

the 2001 results also included charges for market and pricing pressures , which reduced that year 2019s operating profit by $ 145 million .

the $ 10 million decrease in government space 2019s operating profit for the year is primarily due to the reduced volume on government launch vehicles and strategic missile programs , which combined to decrease operating profit by $ 80 million , partially offset by increases of $ 40 million in government satellite programs and $ 30 million in ground systems activities .
operating profit for the segment increased by 4% ( 4 % ) in 2001 compared to 2000 .

operating profit increased in 2001 due to a $ 35 million increase in government space partially offset by higher year-over-year losses of $ 20 million in commercial space .
in government space , operating profit increased due to the impact of higher volume and improved performance in ground systems and government satellite programs .

the year- to-year comparison of operating profit was not affected by the $ 50 million favorable titan iv adjustment recorded in 2000 discussed above , due to a $ 55 million charge related to a more conservative assessment of government launch vehi- cle programs that was recorded in the fourth quarter of 2000 .
in commercial space , decreased operating profit of $ 15 mil- lion on launch vehicles more than offset lower losses on satel- lite manufacturing activities .

the commercial launch vehicle operating results included $ 60 million in higher charges for market and pricing pressures when compared to 2000 .
these negative adjustments were partially offset by $ 50 million of favorable contract adjustments on certain launch vehicle con- tracts .

commercial satellite manufacturing losses decreased slightly from 2000 and included the adverse impact of a $ 40 million loss provision recorded in the first quarter of 2001 for certain commercial satellite contracts related to schedule and technical issues.

 |
| table | ( in millions )  | 2002   | 2001   | 2000
---------------- | ------ | ------ | ------
net sales        | $ 7384 | $ 6836 | $ 7339
operating profit | 443    | 360    | 345 |


| _id | dd4b90e72 |
| title |  |
| text | citigroup 2019s repurchases are primarily from government sponsored entities .
the specific representations and warranties made by the company depend on the nature of the transaction and the requirements of the buyer .
market conditions and credit-ratings agency requirements may also affect representations and warranties and the other provisions the company may agree to in loan sales .

in the event of a breach of the representations and warranties , the company may be required to either repurchase the mortgage loans ( generally at unpaid principal balance plus accrued interest ) with the identified defects or indemnify ( 201cmake-whole 201d ) the investor or insurer .
the company has recorded a repurchase reserve that is included in other liabilities in the consolidated balance sheet .
in the case of a repurchase , the company will bear any subsequent credit loss on the mortgage loans .

the company 2019s representations and warranties are generally not subject to stated limits in amount or time of coverage .
however , contractual liability arises only when the representations and warranties are breached and generally only when a loss results from the breach .

in the case of a repurchase , the loan is typically considered a credit- impaired loan and accounted for under sop 03-3 , 201caccounting for certain loans and debt securities , acquired in a transfer 201d ( now incorporated into asc 310-30 , receivables 2014loans and debt securities acquired with deteriorated credit quality ) .
these repurchases have not had a material impact on nonperforming loan statistics , because credit-impaired purchased sop 03-3 loans are not included in nonaccrual loans .

the company estimates its exposure to losses from its obligation to repurchase previously sold loans based on the probability of repurchase or make-whole and an estimated loss given repurchase or make-whole .

this estimate is calculated separately by sales vintage ( i.e. , the year the loans were sold ) based on a combination of historical trends and forecasted repurchases and losses considering the : ( 1 ) trends in requests by investors for loan documentation packages to be reviewed ; ( 2 ) trends in recent repurchases and make-wholes ; ( 3 ) historical percentage of claims made as a percentage of loan documentation package requests ; ( 4 ) success rate in appealing claims ; ( 5 ) inventory of unresolved

appealing claims ; ( 5 ) inventory of unresolved claims ; and ( 6 ) estimated loss given repurchase or make-whole , including the loss of principal , accrued interest , and foreclosure costs .

the company does not change its estimation methodology by counterparty , but the historical experience and trends are considered when evaluating the overall reserve .
the request for loan documentation packages is an early indicator of a potential claim .
during 2009 , loan documentation package requests and the level of outstanding claims increased .
in addition , our loss severity estimates increased during 2009 due to the impact of macroeconomic factors and recent experience .

these factors contributed to a $ 493 million change in estimate for this reserve in 2009 .
as indicated above , the repurchase reserve is calculated by sales vintage .
the majority of the repurchases in 2009 were from the 2006 and 2007 sales vintages , which also represent the vintages with the largest loss- given-repurchase .
an insignificant percentage of 2009 repurchases were from vintages prior to 2006 , and this is expected to decrease , because those vintages are later in the credit cycle .

although early in the credit cycle , the company has experienced improved repurchase and loss-given-repurchase statistics from the 2008 and 2009 vintages .
in the case of a repurchase of a credit-impaired sop 03-3 loan ( now incorporated into asc 310-30 ) , the difference between the loan 2019s fair value and unpaid principal balance at the time of the repurchase is recorded as a utilization of the repurchase reserve .

payments to make the investor whole are also treated as utilizations and charged directly against the reserve .
the provision for estimated probable losses arising from loan sales is recorded as an adjustment to the gain on sale , which is included in other revenue in the consolidated statement of income .
a liability for representations and warranties is estimated when the company sells loans and is updated quarterly .

any subsequent adjustment to the provision is recorded in other revenue in the consolidated statement of income .
the activity in the repurchase reserve for the years ended december 31 , 2009 and 2008 is as follows: .

goodwill goodwill represents an acquired company 2019s acquisition cost over the fair value of net tangible and intangible assets acquired .
goodwill is subject to annual impairment tests , whereby goodwill is allocated to the company 2019s reporting units and an impairment is deemed to exist if the carrying value of a reporting unit exceeds its estimated fair value .

furthermore , on any business dispositions , goodwill is allocated to the business disposed of based on the ratio of the fair value of the business disposed of to the fair value of the reporting unit .
intangible assets intangible assets 2014including core deposit intangibles , present value of future profits , purchased credit card relationships , other customer relationships , and other intangible assets , but excluding msrs 2014are amortized over their estimated useful lives .

intangible assets deemed to have indefinite useful lives , primarily certain asset management contracts and trade names , are not amortized and are subject to annual impairment tests .
an impairment exists if the carrying value of the indefinite-lived intangible asset exceeds its fair value .
for other intangible assets subject to amortization , an impairment is recognized if the carrying amount is not recoverable and exceeds the fair value of the intangible asset .

other assets and other liabilities other assets include , among other items , loans held-for-sale , deferred tax assets , equity-method investments , interest and fees receivable , premises and equipment , end-user derivatives in a net receivable position , repossessed assets , and other receivables.

 |
| table | in millions of dollars        | 2009         | 2008
----------------------------- | ------------ | --------
balance beginning of the year | $ 75         | $ 2
additions for new sales       | 33           | 23
change in estimate            | 493          | 59
utilizations                  | -119 ( 119 ) | -9 ( 9 )
balance end of the year       | $ 482        | $ 75 |


| _id | dd4c55682 |
| title |  |
| text | the goldman sachs group , inc .

and subsidiaries management 2019s discussion and analysis in the table above : 2030 deduction for goodwill and identifiable intangible assets , net of deferred tax liabilities , included goodwill of $ 3.67 billion as of both december 2017 and december 2016 , and identifiable intangible assets of $ 373 million and $ 429 million as of december 2017 and december 2016 , respectively , net of associated deferred tax liabilities of $ 704 million and $ 1.08 billion as of december 2017 and december 2016 ,

billion as of december 2017 and december 2016 , respectively .

2030 deduction for investments in nonconsolidated financial institutions represents the amount by which our investments in the capital of nonconsolidated financial institutions exceed certain prescribed thresholds .
the decrease from december 2016 to december 2017 primarily reflects reductions in our fund investments .
2030 deduction for investments in covered funds represents our aggregate investments in applicable covered funds , excluding investments that are subject to an extended conformance period .

this deduction was not subject to a transition period .
see 201cbusiness 2014 regulation 201d in part i , item 1 of this form 10-k for further information about the volcker rule .

2030 other adjustments within cet1 primarily include the overfunded portion of our defined benefit pension plan obligation net of associated deferred tax liabilities , disallowed deferred tax assets , credit valuation adjustments on derivative liabilities , debt valuation adjustments and other required credit risk-based deductions .
2030 qualifying subordinated debt is subordinated debt issued by group inc .
with an original maturity of five years or greater .

the outstanding amount of subordinated debt qualifying for tier 2 capital is reduced upon reaching a remaining maturity of five years .
see note 16 to the consolidated financial statements for further information about our subordinated debt .
see note 20 to the consolidated financial statements for information about our transitional capital ratios , which represent the ratios that are applicable to us as of both december 2017 and december 2016 .

supplementary leverage ratio the capital framework includes a supplementary leverage ratio requirement for advanced approach banking organizations .
under amendments to the capital framework , the u.s .
federal bank regulatory agencies approved a final rule that implements the supplementary leverage ratio aligned with the definition of leverage established by the basel committee .

the supplementary leverage ratio compares tier 1 capital to a measure of leverage exposure , which consists of daily average total assets for the quarter and certain off-balance-sheet exposures , less certain balance sheet deductions .
the capital framework requires a minimum supplementary leverage ratio of 5.0% ( 5.0 % ) ( consisting of the minimum requirement of 3.0% ( 3.0 % ) and a 2.0% ( 2.0 % ) buffer ) for u.s .
bhcs deemed to be g-sibs , effective on january 1 , 2018 .

the table below presents our supplementary leverage ratio , calculated on a fully phased-in basis .
for the three months ended or as of december $ in millions 2017 2016 .

in the table above , the off-balance-sheet exposures consists of derivatives , securities financing transactions , commitments and guarantees .
subsidiary capital requirements many of our subsidiaries , including gs bank usa and our broker-dealer subsidiaries , are subject to separate regulation and capital requirements of the jurisdictions in which they operate .
gs bank usa .

gs bank usa .
gs bank usa is subject to regulatory capital requirements that are calculated in substantially the same manner as those applicable to bhcs and calculates its capital ratios in accordance with the risk-based capital and leverage requirements applicable to state member banks , which are based on the capital framework .

see note 20 to the consolidated financial statements for further information about the capital framework as it relates to gs bank usa , including gs bank usa 2019s capital ratios and required minimum ratios .
goldman sachs 2017 form 10-k 73

 |
| table | $ in millions                         | for the three months ended or as of december 2017 | for the three months ended or as of december 2016
------------------------------------- | ------------------------------------------------- | -------------------------------------------------
tier 1 capital                        | $ 78227                                           | $ 81808
average total assets                  | $ 937424                                          | $ 883515
deductions from tier 1 capital        | -4572 ( 4572 )                                    | -4897 ( 4897 )
average adjusted total assets         | 932852                                            | 878618
off-balance-sheetexposures            | 408164                                            | 391555
total supplementary leverage exposure | $ 1341016                                         | $ 1270173
supplementary leverage ratio          | 5.8% ( 5.8 % )                                    | 6.4% ( 6.4 % ) |


| _id | dd4bd002c |
| title |  |
| text | general market conditions affecting trust asset performance , future discount rates based on average yields of high quality corporate bonds and our decisions regarding certain elective provisions of the we currently project that we will make total u.s .
and foreign benefit plan contributions in 2014 of approximately $ 57 million .

actual 2014 contributions could be different from our current projections , as influenced by our decision to undertake discretionary funding of our benefit trusts versus other competing investment priorities , future changes in government requirements , trust asset performance , renewals of union contracts , or higher-than-expected health care claims cost experience .
we measure cash flow as net cash provided by operating activities reduced by expenditures for property additions .

we use this non-gaap financial measure of cash flow to focus management and investors on the amount of cash available for debt repayment , dividend distributions , acquisition opportunities , and share repurchases .
our cash flow metric is reconciled to the most comparable gaap measure , as follows: .

year-over-year change ( 4.5 ) % (  % ) 22.4% ( 22.4 % ) the decrease in cash flow ( as defined ) in 2013 compared to 2012 was due primarily to higher capital expenditures .
the increase in cash flow in 2012 compared to 2011 was driven by improved performance in working capital resulting from the one-time benefit derived from the pringles acquisition , as well as changes in the level of capital expenditures during the three-year period .

investing activities our net cash used in investing activities for 2013 amounted to $ 641 million , a decrease of $ 2604 million compared with 2012 primarily attributable to the $ 2668 million acquisition of pringles in 2012 .
capital spending in 2013 included investments in our supply chain infrastructure , and to support capacity requirements in certain markets , including pringles .

in addition , we continued the investment in our information technology infrastructure related to the reimplementation and upgrade of our sap platform .
net cash used in investing activities of $ 3245 million in 2012 increased by $ 2658 million compared with 2011 , due to the acquisition of pringles in 2012 .

cash paid for additions to properties as a percentage of net sales has increased to 4.3% ( 4.3 % ) in 2013 , from 3.8% ( 3.8 % ) in 2012 , which was a decrease from 4.5% ( 4.5 % ) in financing activities our net cash used by financing activities was $ 1141 million for 2013 , compared to net cash provided by financing activities of $ 1317 million for 2012 and net cash used in financing activities of $ 957 million for 2011 .

the increase in cash provided from financing activities in 2012 compared to 2013 and 2011 , was primarily due to the issuance of debt related to the acquisition of pringles .
total debt was $ 7.4 billion at year-end 2013 and $ 7.9 billion at year-end 2012 .
in february 2013 , we issued $ 250 million of two-year floating-rate u.s .
dollar notes , and $ 400 million of ten-year 2.75% ( 2.75 % ) u.s .
dollar notes , resulting in aggregate net proceeds after debt discount of $ 645 million .

the proceeds from these notes were used for general corporate purposes , including , together with cash on hand , repayment of the $ 750 million aggregate principal amount of our 4.25% ( 4.25 % ) u.s .
dollar notes due march 2013 .
in may 2012 , we issued $ 350 million of three-year 1.125% ( 1.125 % ) u.s .
dollar notes , $ 400 million of five-year 1.75% ( 1.75 % ) u.s .
dollar notes and $ 700 million of ten-year 3.125% ( 3.125 % ) u.s .

dollar notes , resulting in aggregate net proceeds after debt discount of $ 1.442 billion .
the proceeds of these notes were used for general corporate purposes , including financing a portion of the acquisition of pringles .
in may 2012 , we issued cdn .
$ 300 million of two-year 2.10% ( 2.10 % ) fixed rate canadian dollar notes , using the proceeds from these notes for general corporate purposes , which included repayment of intercompany debt .

this repayment resulted in cash available to be used for a portion of the acquisition of pringles .
in december 2012 , we repaid $ 750 million five-year 5.125% ( 5.125 % ) u.s .
dollar notes at maturity with commercial paper .
in april 2011 , we repaid $ 945 million ten-year 6.60% ( 6.60 % ) u.s .
dollar notes at maturity with commercial paper .
in may 2011 , we issued $ 400 million of seven-year 3.25% ( 3.25 % ) fixed rate u.s .

dollar notes , using the proceeds of $ 397 million for general corporate purposes and repayment of commercial paper .
in november 2011 , we issued $ 500 million of five-year 1.875% ( 1.875 % ) fixed rate u .
s .
dollar notes , using the proceeds of $ 498 million for general corporate purposes and repayment of commercial paper.

 |
| table | ( dollars in millions )                   | 2013             | 2012             | 2011
----------------------------------------- | ---------------- | ---------------- | ------------
net cash provided by operating activities | $ 1807           | $ 1758           | $ 1595
additions to properties                   | -637 ( 637 )     | -533 ( 533 )     | -594 ( 594 )
cash flow                                 | $ 1170           | $ 1225           | $ 1001
year-over-year change                     | ( 4.5 ) % (  % ) | 22.4% ( 22.4 % ) | |


| _id | dd4bfcdca |
| title |  |
| text | in 2016 , arconic also recognized discrete income tax benefits related to the release of valuation allowances on certain net deferred tax assets in russia and canada of $ 19 and $ 20 respectively .
after weighing all available evidence , management determined that it was more likely than not that the net income tax benefits associated with the underlying deferred tax assets would be realizable based on historic cumulative income and projected taxable income .

arconic also recorded additional valuation allowances in australia of $ 93 related to the separation transaction , in spain of $ 163 related to a tax law change and in luxembourg of $ 280 related to the separation transaction as well as a tax law change .
these valuation allowances fully offset current year changes in deferred tax asset balances of each respective jurisdiction , resulting in no net impact to tax expense .

the need for a valuation allowance will be reassessed on a continuous basis in future periods by each jurisdiction and , as a result , the allowances may increase or decrease based on changes in facts and circumstances .
in 2015 , arconic recognized an additional $ 141 discrete income tax charge for valuation allowances on certain deferred tax assets in iceland and suriname .

of this amount , an $ 85 valuation allowance was established on the full value of the deferred tax assets in suriname , which were related mostly to employee benefits and tax loss carryforwards .
these deferred tax assets have an expiration period ranging from 2016 to 2022 ( as of december 31 , 2015 ) .
the remaining $ 56 charge relates to a valuation allowance established on a portion of the deferred tax assets recorded in iceland .

these deferred tax assets have an expiration period ranging from 2017 to 2023 .
after weighing all available positive and negative evidence , as described above , management determined that it was no longer more likely than not that arconic will realize the tax benefit of either of these deferred tax assets .
this was mainly driven by a decline in the outlook of the primary metals business , combined with prior year cumulative losses and a short expiration period .

in december 2011 , one of arconic 2019s former subsidiaries in brazil applied for a tax holiday related to its expanded mining and refining operations .
during 2013 , the application was amended and re-filed and , separately , a similar application was filed for another one of arconic 2019s former subsidiaries in brazil .
the deadline for the brazilian government to deny the application was july 11 , 2014 .

since arconic did not receive notice that its applications were denied , the tax holiday took effect automatically on july 12 , 2014 .
as a result , the tax rate applicable to qualified holiday income for these subsidiaries decreased significantly ( from 34% ( 34 % ) to 15.25% ( 15.25 % ) ) , resulting in future cash tax savings over the 10-year holiday period ( retroactively effective as of january 1 , 2013 ) .

additionally , a portion of one of the subsidiaries net deferred tax assets that reverses within the holiday period was remeasured at the new tax rate ( the net deferred tax asset of the other subsidiary was not remeasured since it could still be utilized against the subsidiary 2019s future earnings not subject to the tax holiday ) .
this remeasurement resulted in a decrease to that subsidiary 2019s net deferred tax assets and a noncash charge to earnings of $ 52 ( $ 31 after noncontrolling interests ) .

the following table details the changes in the valuation allowance: .

the cumulative amount of arconic 2019s foreign undistributed net earnings for which no deferred taxes have been provided was approximately $ 450 at december 31 , 2016 .
arconic has a number of commitments and obligations related to the company 2019s growth strategy in foreign jurisdictions .
as such , management has no plans to distribute such earnings in the foreseeable future , and , therefore , has determined it is not practicable to determine the related deferred tax liability.

 |
| table | december 31,                                   | 2016         | 2015       | 2014
---------------------------------------------- | ------------ | ---------- | ----------
balance at beginning of year                   | $ 1291       | $ 1151     | $ 1252
increase to allowance                          | 772          | 180        | 102
release of allowance                           | -209 ( 209 ) | -42 ( 42 ) | -70 ( 70 )
acquisitions and divestitures ( f )            | -1 ( 1 )     | 29         | -36 ( 36 )
tax apportionment tax rate and tax law changes | 106          | -15 ( 15 ) | -67 ( 67 )
foreign currency translation                   | -19 ( 19 )   | -12 ( 12 ) | -30 ( 30 )
balance at end of year                         | $ 1940       | $ 1291     | $ 1151 |


| _id | dd4bc8dd6 |
| title |  |
| text | item 2 .
properties we employ a variety of assets in the management and operation of our rail business .
our rail network covers 23 states in the western two-thirds of the u.s .
our rail network includes 31838 route miles .
we own 26009 miles and operate on the remainder pursuant to trackage rights or leases .
the following table describes track miles at december 31 , 2013 and 2012 .
2013 2012 .

headquarters building we maintain our headquarters in omaha , nebraska .
the facility has 1.2 million square feet of space for approximately 4000 employees and is subject to a financing arrangement .
harriman dispatching center the harriman dispatching center ( hdc ) , located in omaha , nebraska , is our primary dispatching facility .
it is linked to regional dispatching and locomotive management facilities at various locations along our

 |
| table | | 2013  | 2012
--------------------------------------- | ----- | -----
route                                   | 31838 | 31868
other main line                         | 6766  | 6715
passing lines and turnouts              | 3167  | 3124
switching and classification yard lines | 9090  | 9046
total miles                             | 50861 | 50753 |


| _id | dd4bf6a7e |
| title |  |
| text | corporate/other corporate/other includes certain unallocated costs of global staff functions ( including finance , risk , human resources , legal and compliance ) , other corporate expenses and unallocated global operations and technology expenses and income taxes , as well as corporate treasury , certain north america legacy consumer loan portfolios , other legacy assets and discontinued operations ( for additional information on corporate/other , see 201ccitigroup segments 201d above ) .

at december 31 , 2018 , corporate/other had $ 91 billion in assets , an increase of 17% ( 17 % ) from the prior year .
in millions of dollars 2018 2017 2016 % (  % ) change 2018 vs .
2017 % (  % ) change 2017 vs .
2016 .

nm not meaningful 2018 vs .
2017 net income was $ 107 million in 2018 , compared to a net loss of $ 19.7 billion in the prior year , primarily driven by the $ 19.8 billion one-time , non-cash charge recorded in the tax line in 2017 due to the impact of tax reform .
results in 2018 included the one-time benefit of $ 94 million in the tax line , related to tax reform .
for additional information , see 201csignificant accounting policies and significant estimates 2014income taxes 201d below .

excluding the one-time impact of tax reform in 2018 and 2017 , net income decreased 92% ( 92 % ) , reflecting lower revenues , partially offset by lower expenses , lower cost of credit and tax benefits related to the reorganization of certain non-u.s .
subsidiaries .
the tax benefits were largely offset by the release of a foreign currency translation adjustment ( cta ) from aoci to earnings ( for additional information on the cta release , see note 19 to the consolidated financial statements ) .

revenues decreased 33% ( 33 % ) , driven by the continued wind-down of legacy assets .
expenses decreased 40% ( 40 % ) , primarily driven by the wind-down of legacy assets , lower infrastructure costs and lower legal expenses .
provisions decreased $ 27 million to a net benefit of $ 202 million , primarily due to lower net credit losses , partially offset by a lower net loan loss reserve release .

net credit losses declined 86% ( 86 % ) to $ 21 million , primarily reflecting the impact of ongoing divestiture activity and the continued wind-down of the north america mortgage portfolio .
the net reserve release declined by $ 96 million to $ 221 million , and reflected the continued wind-down of the legacy north america mortgage portfolio and divestitures .
2017 vs .

2017 vs .
2016 the net loss was $ 19.7 billion , compared to net income of $ 521 million in the prior year , primarily driven by the one-time impact of tax reform .
excluding the one-time impact of tax reform , net income declined 69% ( 69 % ) to $ 168 million , reflecting lower revenues , partially offset by lower expenses and lower cost of credit .
revenues declined 40% ( 40 % ) , primarily reflecting the continued wind-down of legacy assets and the absence of gains related to debt buybacks in 2016 .

revenues included approximately $ 750 million in gains on asset sales in the first quarter of 2017 , which more than offset a roughly $ 300 million charge related to the exit of citi 2019s u.s .
mortgage servicing operations in the quarter .
expenses declined 24% ( 24 % ) , reflecting the wind-down of legacy assets and lower legal expenses , partially offset by approximately $ 100 million in episodic expenses primarily related to the exit of the u.s .
mortgage servicing operations .

mortgage servicing operations .
also included in expenses is an approximately $ 255 million provision for remediation costs related to a card act matter in 2017 .
provisions decreased $ 244 million to a net benefit of $ 175 million , primarily due to lower net credit losses and a lower provision for benefits and claims , partially offset by a lower net loan loss reserve release .

net credit losses declined 66% ( 66 % ) , primarily reflecting the impact of ongoing divestiture activity and the continued wind-down of the north america mortgage portfolio .
the decline in the provision for benefits and claims was primarily due to lower insurance activity .
the net reserve release declined $ 147 million , and reflected the continued wind-down of the legacy north america mortgage portfolio and divestitures.

 |
| table | in millions of dollars                                             | 2018           | 2017               | 2016         | % (  % ) change2018 vs . 2017 | % (  % ) change2017 vs . 2016
------------------------------------------------------------------ | -------------- | ------------------ | ------------ | ----------------------------- | -----------------------------
net interest revenue                                               | $ 2254         | $ 2000             | $ 3045       | 13% ( 13 % )                  | ( 34 ) % (  % )
non-interest revenue                                               | -171 ( 171 )   | 1132               | 2188         | nm                            | -48 ( 48 )
total revenues net of interest expense                             | $ 2083         | $ 3132             | $ 5233       | ( 33 ) % (  % )               | ( 40 ) % (  % )
total operating expenses                                           | $ 2272         | $ 3814             | $ 5042       | ( 40 ) % (  % )               | ( 24 ) % (  % )
net credit losses                                                  | $ 21           | $ 149              | $ 435        | ( 86 ) % (  % )               | ( 66 ) % (  % )
credit reserve build ( release )                                   | -218 ( 218 )   | -317 ( 317 )       | -456 ( 456 ) | 31                            | 30
provision ( release ) for unfunded lending commitments             | -3 ( 3 )       | 2014               | -8 ( 8 )     | 2014                          | 100
provision for benefits and claims                                  | -2 ( 2 )       | -7 ( 7 )           | 98           | 71                            | nm
provisions for credit losses and for benefits and claims           | $ -202 ( 202 ) | $ -175 ( 175 )     | $ 69         | -15 ( 15 )                    | nm
income ( loss ) from continuing operations before taxes            | $ 13           | $ -507 ( 507 )     | $ 122        | nm                            | nm
income taxes ( benefits )                                          | -113 ( 113 )   | 19064              | -455 ( 455 ) | nm                            | nm
income ( loss ) from continuing operations                         | $ 126          | $ -19571 ( 19571 ) | $ 577        | nm                            | nm
income ( loss ) from discontinued operations net of taxes          | -8 ( 8 )       | -111 ( 111 )       | -58 ( 58 )   | 93                            | -91 ( 91 )
net income ( loss ) before attribution of noncontrolling interests | $ 118          | $ -19682 ( 19682 ) | $ 519        | nm                            | nm
noncontrolling interests                                           | 11             | -6 ( 6 )           | -2 ( 2 )     | nm                            | nm
net income ( loss )                                                | $ 107          | $ -19676 ( 19676 ) | $ 521        | nm                            | nm |


| _id | dd496e694 |
| title |  |
| text | entergy louisiana , inc .
management's financial discussion and analysis gross operating revenues , fuel and purchased power expenses , and other regulatory credits gross operating revenues increased primarily due to : 2022 an increase of $ 98.0 million in fuel cost recovery revenues due to higher fuel rates ; and 2022 an increase due to volume/weather , as discussed above .

the increase was partially offset by the following : 2022 a decrease of $ 31.9 million in the price applied to unbilled sales , as discussed above ; 2022 a decrease of $ 12.2 million in rate refund provisions , as discussed above ; and 2022 a decrease of $ 5.2 million in gross wholesale revenue due to decreased sales to affiliated systems .

fuel and purchased power expenses increased primarily due to : 2022 an increase in the recovery from customers of deferred fuel costs ; and 2022 an increase in the market price of natural gas .

other regulatory credits increased primarily due to : 2022 the deferral in 2004 of $ 14.3 million of capacity charges related to generation resource planning as allowed by the lpsc ; 2022 the amortization in 2003 of $ 11.8 million of deferred capacity charges , as discussed above ; and 2022 the deferral in 2004 of $ 11.4 million related to entergy's voluntary severance program , in accordance with a proposed stipulation with the lpsc staff .

2003 compared to 2002 net revenue , which is entergy louisiana's measure of gross margin , consists of operating revenues net of : 1 ) fuel , fuel-related , and purchased power expenses and 2 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2003 to 2002. .

the deferred fuel cost revisions variance resulted from a revised unbilled sales pricing estimate made in december 2002 and a further revision made in the first quarter of 2003 to more closely align the fuel component of that pricing with expected recoverable fuel costs .
the asset retirement obligation variance was due to the implementation of sfas 143 , "accounting for asset retirement obligations" adopted in january 2003 .
see "critical accounting estimates" for more details on sfas 143 .

the increase was offset by decommissioning expense and had no effect on net income .
the volume variance was due to a decrease in electricity usage in the service territory .
billed usage decreased 1868 gwh in the industrial sector including the loss of a large industrial customer to cogeneration.

 |
| table | | ( in millions )
---------------------------- | ---------------
2002 net revenue             | $ 922.9
deferred fuel cost revisions | 59.1
asset retirement obligation  | 8.2
volume                       | -16.2 ( 16.2 )
vidalia settlement           | -9.2 ( 9.2 )
other                        | 8.9
2003 net revenue             | $ 973.7 |


| _id | dd4bcb2de |
| title |  |
| text | as of september 24 , 2011 , the total amount of gross unrecognized tax benefits was $ 1.4 billion , of which $ 563 million , if recognized , would affect the company 2019s effective tax rate .
as of september 25 , 2010 , the total amount of gross unrecognized tax benefits was $ 943 million , of which $ 404 million , if recognized , would affect the company 2019s effective tax rate .

the aggregate changes in the balance of gross unrecognized tax benefits , which excludes interest and penalties , for the three years ended september 24 , 2011 , is as follows ( in millions ) : .

the company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes .
as of september 24 , 2011 and september 25 , 2010 , the total amount of gross interest and penalties accrued was $ 261 million and $ 247 million , respectively , which is classified as non-current liabilities in the consolidated balance sheets .

in connection with tax matters , the company recognized interest expense in 2011 and 2009 of $ 14 million and $ 64 million , respectively , and in 2010 the company recognized an interest benefit of $ 43 million .
the company is subject to taxation and files income tax returns in the u.s .
federal jurisdiction and in many state and foreign jurisdictions .
for u.s .
federal income tax purposes , all years prior to 2004 are closed .

the internal revenue service ( the 201cirs 201d ) has completed its field audit of the company 2019s federal income tax returns for the years 2004 through 2006 and proposed certain adjustments .
the company has contested certain of these adjustments through the irs appeals office .
the irs is currently examining the years 2007 through 2009 .
in addition , the company is also subject to audits by state , local and foreign tax authorities .

in major states and major foreign jurisdictions , the years subsequent to 1988 and 2001 , respectively , generally remain open and could be subject to examination by the taxing authorities .
management believes that an adequate provision has been made for any adjustments that may result from tax examinations .
however , the outcome of tax audits cannot be predicted with certainty .

if any issues addressed in the company 2019s tax audits are resolved in a manner not consistent with management 2019s expectations , the company could be required to adjust its provision for income tax in the period such resolution occurs .
although timing of the resolution and/or closure of audits is not certain , the company does not believe it is reasonably possible that its unrecognized tax benefits would materially change in the next 12 months .

note 6 2013 shareholders 2019 equity and share-based compensation preferred stock the company has five million shares of authorized preferred stock , none of which is issued or outstanding .
under the terms of the company 2019s restated articles of incorporation , the board of directors is authorized to determine or alter the rights , preferences , privileges and restrictions of the company 2019s authorized but unissued shares of preferred stock .

comprehensive income comprehensive income consists of two components , net income and other comprehensive income .
other comprehensive income refers to revenue , expenses , gains and losses that under gaap are recorded as an element

 |
| table | | 2011       | 2010         | 2009
---------------------------------------------------------------- | ---------- | ------------ | ----------
beginning balance                                                | $ 943      | 971          | $ 506
increases related to tax positions taken during a prior year     | 49         | 61           | 341
decreases related to tax positions taken during a prior year     | -39 ( 39 ) | -224 ( 224 ) | -24 ( 24 )
increases related to tax positions taken during the current year | 425        | 240          | 151
decreases related to settlements with taxing authorities         | 0          | -102 ( 102 ) | 0
decreases related to expiration of statute of limitations        | -3 ( 3 )   | -3 ( 3 )     | -3 ( 3 )
ending balance                                                   | $ 1375     | $ 943        | $ 971 |


| _id | dd4b90814 |
| title |  |
| text | the contractual maturities of held-to-maturity securities as of january 30 , 2009 were in excess of three years and were $ 31.4 million at cost and $ 28.9 million at fair value , respectively .
for the successor year ended january 30 , 2009 and period ended february 1 , 2008 , and the predecessor period ended july 6 , 2007 and year ended february 2 , 2007 , gross realized gains and losses on the sales of available-for-sale securities were not material .

the cost of securities sold is based upon the specific identification method .
merchandise inventories inventories are stated at the lower of cost or market with cost determined using the retail last-in , first-out ( 201clifo 201d ) method .

under the company 2019s retail inventory method ( 201crim 201d ) , the calculation of gross profit and the resulting valuation of inventories at cost are computed by applying a calculated cost-to-retail inventory ratio to the retail value of sales at a department level .
costs directly associated with warehousing and distribution are capitalized into inventory .
the excess of current cost over lifo cost was approximately $ 50.0 million at january 30 , 2009 and $ 6.1 million at february 1 , 2008 .

current cost is determined using the retail first-in , first-out method .
the company 2019s lifo reserves were adjusted to zero at july 6 , 2007 as a result of the merger .
the successor recorded lifo provisions of $ 43.9 million and $ 6.1 million during 2008 and 2007 , respectively .
the predecessor recorded a lifo credit of $ 1.5 million in 2006 .

in 2008 , the increased commodity cost pressures mainly related to food and pet products which have been driven by fruit and vegetable prices and rising freight costs .
increases in petroleum , resin , metals , pulp and other raw material commodity driven costs also resulted in multiple product cost increases .
the company intends to address these commodity cost increases through negotiations with its vendors and by increasing retail prices as necessary .

on a quarterly basis , the company estimates the annual impact of commodity cost fluctuations based upon the best available information at that point in time .
store pre-opening costs pre-opening costs related to new store openings and the construction periods are expensed as incurred .
property and equipment property and equipment are recorded at cost .
the company provides for depreciation and amortization on a straight-line basis over the following estimated useful lives: .

improvements of leased properties are amortized over the shorter of the life of the applicable lease term or the estimated useful life of the asset.

 |
| table | land improvements                | 20
-------------------------------- | -----
buildings                        | 39-40
furniture fixtures and equipment | 3-10 |


| _id | dd4b916e2 |
| title |  |
| text | results of operations for 2016 include : 1 ) $ 2836 million ( $ 1829 million net-of-tax ) of impairment and related charges primarily to write down the carrying values of the entergy wholesale commodities 2019 palisades , indian point 2 , and indian point 3 plants and related assets to their fair values ; 2 ) a reduction of income tax expense , net of unrecognized tax benefits , of $ 238 million as a result of a change in the tax classification of a legal entity that owned one of the entergy wholesale

entity that owned one of the entergy wholesale commodities nuclear power plants ; income tax benefits as a result of the settlement of the 2010-2011 irs audit , including a $ 75 million tax benefit recognized by entergy louisiana related to the treatment of the vidalia purchased power agreement and a $ 54 million net benefit recognized by entergy louisiana related to the treatment of proceeds received in 2010 for the financing of hurricane gustav and hurricane ike storm costs pursuant to louisiana act 55 ;

ike storm costs pursuant to louisiana act 55 ; and 3 ) a reduction in expenses of $ 100 million ( $ 64 million net-of-tax ) due to the effects of recording in 2016 the final court decisions in several lawsuits against the doe related to spent nuclear fuel storage costs .

see note 14 to the financial statements for further discussion of the impairment and related charges , see note 3 to the financial statements for additional discussion of the income tax items , and see note 8 to the financial statements for discussion of the spent nuclear fuel litigation .
net revenue utility following is an analysis of the change in net revenue comparing 2017 to 2016 .
amount ( in millions ) .

the retail electric price variance is primarily due to : 2022 the implementation of formula rate plan rates effective with the first billing cycle of january 2017 at entergy arkansas and an increase in base rates effective february 24 , 2016 , each as approved by the apsc .

a significant portion of the base rate increase was related to the purchase of power block 2 of the union power station in march 2016 ; 2022 a provision recorded in 2016 related to the settlement of the waterford 3 replacement steam generator prudence review proceeding ; 2022 the implementation of the transmission cost recovery factor rider at entergy texas , effective september 2016 , and an increase in the transmission cost recovery factor rider rate , effective march 2017 , as approved by the puct ; and

march 2017 , as approved by the puct ; and 2022 an increase in rates at entergy mississippi , as approved by the mpsc , effective with the first billing cycle of july 2016 .

see note 2 to the financial statements for further discussion of the rate proceedings and the waterford 3 replacement steam generator prudence review proceeding .
see note 14 to the financial statements for discussion of the union power station purchase .
entergy corporation and subsidiaries management 2019s financial discussion and analysis

 |
| table | | amount ( in millions )
---------------------------------------------------------------------------------- | ----------------------
2016 net revenue                                                                   | $ 6179
retail electric price                                                              | 91
regulatory credit resulting from reduction of thefederal corporate income tax rate | 56
grand gulf recovery                                                                | 27
louisiana act 55 financing savings obligation                                      | 17
volume/weather                                                                     | -61 ( 61 )
other                                                                              | 9
2017 net revenue                                                                   | $ 6318 |


| _id | dd4c1862e |
| title |  |
| text | stock performance graph the following graph provides a comparison of five year cumulative total stockholder returns of teleflex common stock , the standard & poor 2019s ( s&p ) 500 stock index and the s&p 500 healthcare equipment & supply index .
the annual changes for the five-year period shown on the graph are based on the assumption that $ 100 had been invested in teleflex common stock and each index on december 31 , 2009 and that all dividends were reinvested .
market performance .

s&p 500 healthcare equipment & supply index 100 97 97 113 144 182

 |
| table | company / index                             | 2009 | 2010 | 2011 | 2012 | 2013 | 2014
------------------------------------------- | ---- | ---- | ---- | ---- | ---- | ----
teleflex incorporated                       | 100  | 102  | 119  | 142  | 190  | 235
s&p 500 index                               | 100  | 115  | 117  | 136  | 180  | 205
s&p 500 healthcare equipment & supply index | 100  | 97   | 97   | 113  | 144  | 182 |


| _id | dd498a524 |
| title |  |
| text | to , rather than as a substitute for , cash provided by operating activities .
the following table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : .

2016 outlook f0b7 safety 2013 operating a safe railroad benefits all our constituents : our employees , customers , shareholders and the communities we serve .
we will continue using a multi-faceted approach to safety , utilizing technology , risk assessment , quality control , training and employee engagement , and targeted capital investments .

we will continue using and expanding the deployment of total safety culture and courage to care throughout our operations , which allows us to identify and implement best practices for employee and operational safety .

we will continue our efforts to increase detection of rail defects ; improve or close crossings ; and educate the public and law enforcement agencies about crossing safety through a combination of our own programs ( including risk assessment strategies ) , industry programs and local community activities across our network .
f0b7 network operations 2013 in 2016 , we will continue to align resources with customer demand , continue to improve network performance , and maintain our surge capability .

f0b7 fuel prices 2013 with the dramatic drop in fuel prices during 2015 , fuel price projections continue to be uncertain in the current environment .
we again could see volatile fuel prices during the year , as they are sensitive to global and u.s .
domestic demand , refining capacity , geopolitical events , weather conditions and other factors .
as prices fluctuate , there will be a timing impact on earnings , as our fuel surcharge programs trail fluctuations in fuel price by approximately two months .

continuing lower fuel prices could have a positive impact on the economy by increasing consumer discretionary spending that potentially could increase demand for various consumer products that we transport .
alternatively , lower fuel prices will likely have a negative impact on other commodities such as coal , frac sand and crude oil shipments .

f0b7 capital plan 2013 in 2016 , we expect our capital plan to be approximately $ 3.75 billion , including expenditures for ptc , 230 locomotives and 450 freight cars .
the capital plan may be revised if business conditions warrant or if new laws or regulations affect our ability to generate sufficient returns on these investments .

( see further discussion in this item 7 under liquidity and capital resources 2013 capital plan. ) f0b7 financial expectations 2013 economic conditions in many of our market sectors continue to drive uncertainty with respect to our volume levels .
we expect volumes to be down slightly in 2016 compared to 2015 , but will depend on the overall economy and market conditions .
the strong u.s .
dollar and historic low commodity prices could also drive continued volatility .

one of the biggest uncertainties is the outlook for energy markets , which will bring both challenges and opportunities .
in the current environment , we expect continued margin improvement driven by continued pricing opportunities , ongoing productivity initiatives , and the ability to leverage our resources and strengthen our franchise .
over the longer term , we expect the overall u.s .
economy to continue to improve at a modest pace , with some markets outperforming others.

 |
| table | millions                              | 2015           | 2014           | 2013
------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 7344         | $ 7385         | $ 6823
cash used in investing activities     | -4476 ( 4476 ) | -4249 ( 4249 ) | -3405 ( 3405 )
dividends paid                        | -2344 ( 2344 ) | -1632 ( 1632 ) | -1333 ( 1333 )
free cash flow                        | $ 524          | $ 1504         | $ 2085 |


| _id | dd497848c |
| 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 , non-cash ( gain ) loss related to early extinguishment of debt , losses on sales of businesses 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 2015 was $ 674.0 , which was an improvement of $ 4.5 as compared to 2014 , primarily as a result of an improvement in working capital usage of $ 13.6 .
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 .

our net working capital usage in 2015 was primarily attributable to our media businesses .
net cash provided by operating activities during 2014 was $ 669.5 , which was an improvement of $ 76.6 as compared to 2013 , primarily as a result of an increase in net income , offset by an increase in working capital usage of $ 121.5 .
our net working capital usage in 2014 was 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 2015 primarily related to payments for capital expenditures of $ 161.1 , largely attributable to purchases of leasehold improvements and computer hardware .
net cash used in investing activities during 2014 primarily related to payments for capital expenditures and acquisitions .
capital expenditures of $ 148.7 related primarily to computer hardware and software and leasehold improvements .

we made payments of $ 67.8 related to acquisitions completed during 2014 , net of cash acquired.

 |
| table | cash flow data                                                                           | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013
---------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile net income to net cashprovided by operating activities1 | $ 848.2                        | $ 831.2                        | $ 598.4
net cash used in working capital2                                                        | -117.5 ( 117.5 )               | -131.1 ( 131.1 )               | -9.6 ( 9.6 )
changes in other non-current assets and liabilities using cash                           | -56.7 ( 56.7 )                 | -30.6 ( 30.6 )                 | 4.1
net cash provided by operating activities                                                | $ 674.0                        | $ 669.5                        | $ 592.9
net cash used in investing activities                                                    | -202.8 ( 202.8 )               | -200.8 ( 200.8 )               | -224.5 ( 224.5 )
net cash used in financing activities                                                    | -472.8 ( 472.8 )               | -343.9 ( 343.9 )               | -1212.3 ( 1212.3 ) |