| _id | dd4ba1894 |
| title |  |
| text | corporate/other corporate/other includes global staff functions ( includes finance , risk , human resources , legal and compliance ) and other corporate expense , global operations and technology ( o&t ) , residual corporate treasury and corporate items .
at december 31 , 2009 , this segment had approximately $ 230 billion of assets , consisting primarily of the company 2019s liquidity portfolio , including $ 110 billion of cash and cash equivalents. .

2009 vs .
2008 revenues , net of interest expense declined , primarily due to the pretax loss on debt extinguishment related to the repayment of the $ 20 billion of tarp trust preferred securities and the pretax loss in connection with the exit from the loss-sharing agreement with the u.s .
government .
revenues also declined , due to the absence of the 2008 sale of citigroup global services limited recorded in o&t .

this was partially offset by a pretax gain related to the exchange offers , revenues and higher intersegment eliminations .
operating expenses increased , primarily due to intersegment eliminations and increases in compensation , partially offset by lower repositioning reserves .
2008 vs .

2008 vs .
2007 revenues , net of interest expense increased primarily due to the gain in 2007 on the sale of certain corporate-owned assets and higher intersegment eliminations , partially offset by improved treasury hedging activities .
operating expenses declined , primarily due to lower restructuring charges in 2008 as well as reductions in incentive compensation and benefits expense.

 |
| table | in millions of dollars                                             | 2009               | 2008             | 2007
------------------------------------------------------------------ | ------------------ | ---------------- | ----------------
net interest revenue                                               | $ -1663 ( 1663 )   | $ -2680 ( 2680 ) | $ -2008 ( 2008 )
non-interest revenue                                               | -8893 ( 8893 )     | 422              | -302 ( 302 )
total revenues net of interest expense                             | $ -10556 ( 10556 ) | $ -2258 ( 2258 ) | $ -2310 ( 2310 )
total operating expenses                                           | $ 1420             | $ 510            | $ 1813
provisions for loan losses and for benefits and claims             | -1 ( 1 )           | 1                | -3 ( 3 )
( loss ) from continuing operations before taxes                   | $ -11975 ( 11975 ) | $ -2769 ( 2769 ) | $ -4120 ( 4120 )
income taxes ( benefits )                                          | -4369 ( 4369 )     | -587 ( 587 )     | -1446 ( 1446 )
( loss ) from continuing operations                                | $ -7606 ( 7606 )   | $ -2182 ( 2182 ) | $ -2674 ( 2674 )
income ( loss ) from discontinued operations net of taxes          | -445 ( 445 )       | 4002             | 708
net income ( loss ) before attribution of noncontrolling interests | $ -8051 ( 8051 )   | $ 1820           | $ -1966 ( 1966 )
net income attributable to noncontrolling interests                | 2014               | 2014             | 2
net income ( loss )                                                | $ -8051 ( 8051 )   | $ 1820           | $ -1968 ( 1968 ) |


| _id | dd4bdd286 |
| title |  |
| text | during 2009 , the company extended the contractual life of 4 million fully vested share options held by 6 employees .
as a result of that modification , the company recognized additional compensation expense of $ 1 million for the year ended december 31 , 2009 .
restricted stock units ( 201crsus 201d ) performance-based rsus .
the company grants performance-based rsus to the company 2019s executive officers and certain employees once per year .

the company may also grant performance-based rsus to certain new employees or to employees who assume positions of increasing responsibility at the time those events occur .

the number of performance-based rsus that ultimately vest is dependent on one or both of the following as per the terms of the specific award agreement : the achievement of 1 ) internal profitability targets ( performance condition ) and 2 ) market performance targets measured by the comparison of the company 2019s stock performance versus a defined peer group ( market condition ) .

the performance-based rsus generally cliff-vest during the company 2019s quarter-end september 30 black-out period three years from the date of grant .
the ultimate number of shares of the company 2019s series a common stock issued will range from zero to stretch , with stretch defined individually under each award , net of personal income taxes withheld .

the market condition is factored into the estimated fair value per unit and compensation expense for each award will be based on the probability of achieving internal profitability targets , as applicable , and recognized on a straight-line basis over the term of the respective grant , less estimated forfeitures .

for performance-based rsus granted without a performance condition , compensation expense is based on the fair value per unit recognized on a straight-line basis over the term of the grant , less estimated forfeitures .
in april 2007 , the company granted performance-based rsus to certain employees that vest annually in equal tranches beginning october 1 , 2008 through october 1 , 2011 and include a market condition .

the performance- based rsus awarded include a catch-up provision that provides for an additional year of vesting of previously unvested amounts , subject to certain maximums .
compensation expense is based on the fair value per unit recognized on a straight-line basis over the term of the grant , less estimated forfeitures .
a summary of changes in performance-based rsus outstanding is as follows : number of weighted average fair value ( in thousands ) ( in $ ) .

the fair value of shares vested for performance-based rsus during the years ended december 31 , 2009 and 2008 was $ 2 million and $ 3 million , respectively .
there were no vestings that occurred during the year ended december 31 , 2007 .
fair value for the company 2019s performance-based rsus was estimated at the grant date using a monte carlo simulation approach .

monte carlo simulation was utilized to randomly generate future stock returns for the company and each company in the defined peer group for each grant based on company-specific dividend yields , volatilities and stock return correlations .

these returns were used to calculate future performance-based rsu vesting percentages and the simulated values of the vested performance-based rsus were then discounted to present value using a risk-free rate , yielding the expected value of these performance-based rsus .
%%transmsg*** transmitting job : d70731 pcn : 119000000 ***%%pcmsg|119 |00016|yes|no|02/10/2010 16:17|0|0|page is valid , no graphics -- color : n|

 |
| table | | number of units ( in thousands ) | weighted average fair value ( in $ )
----------------------------- | -------------------------------- | ------------------------------------
nonvested at december 31 2008 | 1188                             | 19.65
granted                       | 420                              | 38.16
vested                        | -79 ( 79 )                       | 21.30
forfeited                     | -114 ( 114 )                     | 17.28
nonvested at december 31 2009 | 1415                             | 25.24 |


| _id | dd498af42 |
| title |  |
| text | note 10 2013 debt our long-term debt consisted of the following ( in millions ) : .

revolving credit facilities on october 9 , 2015 , we entered into a new $ 2.5 billion revolving credit facility ( the 5-year facility ) with various banks and concurrently terminated our existing $ 1.5 billion revolving credit facility , which was scheduled to expire in august 2019 .
the 5-year facility , which expires on october 9 , 2020 , is available for general corporate purposes .

the undrawn portion of the 5-year facility is also available to serve as a backup facility for the issuance of commercial paper .
we may request and the banks may grant , at their discretion , an increase in the borrowing capacity under the 5-year facility of up to an additional $ 500 million .

there were no borrowings outstanding under the 5-year facility as of and during the year ended december 31 , in contemplation of our acquisition of sikorsky , on october 9 , 2015 , we also entered into a 364-day revolving credit facility ( the 364-day facility , and together with the 5-year facility , the facilities ) with various banks that provided $ 7.0 billion of funding for general corporate purposes , including the acquisition of sikorsky .

concurrent with the consummation of the sikorsky acquisition , we borrowed $ 6.0 billion under the 364-day facility .
on november 23 , 2015 , we repaid all outstanding borrowings under the 364-day facility with proceeds received from an issuance of new debt ( see below ) and terminated any remaining commitments of the lenders under the 364-day facility .

borrowings under the facilities bear interest at rates based , at our option , on a eurodollar rate or a base rate , as defined in the facilities 2019 agreements .

each bank 2019s obligation to make loans under the 5-year facility is subject to , among other things , our compliance with various representations , warranties , and covenants , including covenants limiting our ability and certain of our subsidiaries 2019 ability to encumber assets and a covenant not to exceed a maximum leverage ratio , as defined in the five-year facility agreement .

as of december 31 , 2015 , we were in compliance with all covenants contained in the 5-year facility agreement , as well as in our debt agreements .
long-term debt on november 23 , 2015 , we issued $ 7.0 billion of notes ( the november 2015 notes ) in a registered public offering .
we received net proceeds of $ 6.9 billion from the offering , after deducting discounts and debt issuance costs , which are being amortized as interest expense over the life of the debt .

the november 2015 notes consist of : 2022 $ 750 million maturing in 2018 with a fixed interest rate of 1.85% ( 1.85 % ) ( the 2018 notes ) ; 2022 $ 1.25 billion maturing in 2020 with a fixed interest rate of 2.50% ( 2.50 % ) ( the 2020 notes ) ; 2022 $ 500 million maturing in 2023 with a fixed interest rate of 3.10% ( 3.10 % ) the 2023 notes ) ; 2022 $ 2.0 billion maturing in 2026 with a fixed interest rate of 3.55% ( 3.55 % ) ( the 2026 notes ) ; 2022 $ 500 million maturing in 2036 with a fixed interest

million maturing in 2036 with a fixed interest rate of 4.50% ( 4.50 % ) ( the 2036 notes ) ; and 2022 $ 2.0 billion maturing in 2046 with a fixed interest rate of 4.70% ( 4.70 % ) ( the 2046 notes ) .

we may , at our option , redeem some or all of the november 2015 notes and unpaid interest at any time by paying the principal amount of notes being redeemed plus any make-whole premium and accrued and unpaid interest to the date of redemption .

interest is payable on the 2018 notes and the 2020 notes on may 23 and november 23 of each year , beginning on may 23 , 2016 ; on the 2023 notes and the 2026 notes on january 15 and july 15 of each year , beginning on july 15 , 2016 ; and on the 2036 notes and the 2046 notes on may 15 and november 15 of each year , beginning on may 15 , 2016 .
the november 2015 notes rank equally in right of payment with all of our existing unsecured and unsubordinated indebtedness .

the proceeds of the november 2015 notes were used to repay $ 6.0 billion of borrowings under our 364-day facility and for general corporate purposes.

 |
| table | | 2015           | 2014
--------------------------------------------------------------------------- | -------------- | ------------
notes with rates from 1.85% ( 1.85 % ) to 3.80% ( 3.80 % ) due 2016 to 2045 | $ 8150         | $ 1400
notes with rates from 4.07% ( 4.07 % ) to 5.72% ( 5.72 % ) due 2019 to 2046 | 6089           | 3589
notes with rates from 6.15% ( 6.15 % ) to 9.13% ( 9.13 % ) due 2016 to 2036 | 1941           | 1941
other debt                                                                  | 116            | 111
total long-term debt                                                        | 16296          | 7041
less : unamortized discounts and deferred financing costs                   | -1035 ( 1035 ) | -899 ( 899 )
total long-term debt net                                                    | $ 15261        | $ 6142 |


| _id | dd497d298 |
| title |  |
| text | 15 .
debt the tables below summarize our outstanding debt at 30 september 2016 and 2015 : total debt .

the weighted average interest rate of short-term borrowings outstanding at 30 september 2016 and 2015 was 1.1% ( 1.1 % ) and .8% ( .8 % ) , respectively .
cash paid for interest , net of amounts capitalized , was $ 121.1 in 2016 , $ 97.5 in 2015 , and $ 132.4 in 2014.

 |
| table | 30 september                      | 2016     | 2015
--------------------------------- | -------- | --------
short-term borrowings             | $ 935.8  | $ 1494.3
current portion of long-term debt | 371.3    | 435.6
long-term debt                    | 4918.1   | 3949.1
total debt                        | $ 6225.2 | $ 5879.0
short-term borrowings             |          |
30 september                      | 2016     | 2015
bank obligations                  | $ 133.1  | $ 234.3
commercial paper                  | 802.7    | 1260.0
total short-term borrowings       | $ 935.8  | $ 1494.3 |


| _id | dd4c4ec88 |
| title |  |
| text | stock performance graph the line graph that follows compares the cumulative total stockholder return on our common stock with the cumulative total return of the dow jones u.s .
technology index* and the standard & poor 2019s s&p 500* index for the five years ended december 28 , 2013 .
the graph and table assume that $ 100 was invested on december 26 , 2008 ( the last day of trading for the fiscal year ended december 27 , 2008 ) in each of our common stock , the dow jones u.s .

technology index , and the s&p 500 index , and that all dividends were reinvested .
cumulative total stockholder returns for our common stock , the dow jones u.s .
technology index , and the s&p 500 index are based on our fiscal year .
comparison of five-year cumulative return for intel , the dow jones u.s .
technology index* , and the s&p 500* index .

table of contents

 |
| table | | 2008  | 2009  | 2010  | 2011  | 2012  | 2013
-------------------------------- | ----- | ----- | ----- | ----- | ----- | -----
intel corporation                | $ 100 | $ 148 | $ 157 | $ 191 | $ 163 | $ 214
dow jones u.s . technology index | $ 100 | $ 170 | $ 191 | $ 191 | $ 209 | $ 270
s&p 500 index                    | $ 100 | $ 132 | $ 151 | $ 154 | $ 175 | $ 236 |


| _id | dd497477e |
| title |  |
| text | shareowner return performance graph the following performance graph and related information shall not be deemed 201csoliciting material 201d or to be 201cfiled 201d with the securities and exchange commission , nor shall such information be incorporated by reference into any future filing under the securities act of 1933 or securities exchange act of 1934 , each as amended , except to the extent that the company specifically incorporates it by reference into such filing .

the following graph shows a five-year comparison of cumulative total shareowners 2019 returns for our class b common stock , the s&p 500 index , and the dow jones transportation average .

the comparison of the total cumulative return on investment , which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods , assumes that $ 100 was invested on december 31 , 2001 in the s&p 500 index , the dow jones transportation average , and the class b common stock of united parcel service , inc .

comparison of five year cumulative total return $ 40.00 $ 60.00 $ 80.00 $ 100.00 $ 120.00 $ 140.00 $ 160.00 $ 180.00 $ 200.00 2001 2002 2003 2004 2005 2006 s&p 500 ups dj transport .

securities authorized for issuance under equity compensation plans the following table provides information as of december 31 , 2006 regarding compensation plans under which our class a common stock is authorized for issuance .
these plans do not authorize the issuance of our class b common stock.

 |
| table | | 12/31/01 | 12/31/02 | 12/31/03 | 12/31/04 | 12/31/05 | 12/31/06
-------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
united parcel service inc .      | $ 100.00 | $ 117.19 | $ 140.49 | $ 163.54 | $ 146.35 | $ 148.92
s&p 500 index                    | $ 100.00 | $ 77.90  | $ 100.24 | $ 111.15 | $ 116.61 | $ 135.02
dow jones transportation average | $ 100.00 | $ 88.52  | $ 116.70 | $ 149.06 | $ 166.42 | $ 182.76 |


| _id | dd497f5e8 |
| title |  |
| text | jpmorgan chase & co .
/ 2008 annual report 83 credit risk capital credit risk capital is estimated separately for the wholesale business- es ( ib , cb , tss and am ) and consumer businesses ( rfs and cs ) .

credit risk capital for the overall wholesale credit portfolio is defined in terms of unexpected credit losses , both from defaults and declines in the portfolio value due to credit deterioration , measured over a one-year period at a confidence level consistent with an 201caa 201d credit rating standard .
unexpected losses are losses in excess of those for which provisions for credit losses are maintained .

the capital methodology is based upon several principal drivers of credit risk : exposure at default ( or loan-equivalent amount ) , default likelihood , credit spreads , loss severity and portfolio correlation .
credit risk capital for the consumer portfolio is based upon product and other relevant risk segmentation .

actual segment level default and severity experience are used to estimate unexpected losses for a one-year horizon at a confidence level consistent with an 201caa 201d credit rating standard .
statistical results for certain segments or portfolios are adjusted to ensure that capital is consistent with external bench- marks , such as subordination levels on market transactions or capital held at representative monoline competitors , where appropriate .

market risk capital the firm calculates market risk capital guided by the principle that capital should reflect the risk of loss in the value of portfolios and financial instruments caused by adverse movements in market vari- ables , such as interest and foreign exchange rates , credit spreads , securities prices and commodities prices .
daily value-at-risk ( 201cvar 201d ) , biweekly stress-test results and other factors are used to determine appropriate capital levels .

the firm allocates market risk capital to each business segment according to a formula that weights that seg- ment 2019s var and stress-test exposures .
see market risk management on pages 111 2013116 of this annual report for more information about these market risk measures .
operational risk capital capital is allocated to the lines of business for operational risk using a risk-based capital allocation methodology which estimates opera- tional risk on a bottom-up basis .

the operational risk capital model is based upon actual losses and potential scenario-based stress losses , with adjustments to the capital calculation to reflect changes in the quality of the control environment or the use of risk-transfer prod- ucts .
the firm believes its model is consistent with the new basel ii framework .

private equity risk capital capital is allocated to privately and publicly held securities , third-party fund investments and commitments in the private equity portfolio to cover the potential loss associated with a decline in equity markets and related asset devaluations .
in addition to negative market fluctua- tions , potential losses in private equity investment portfolios can be magnified by liquidity risk .

the capital allocation for the private equity portfolio is based upon measurement of the loss experience suffered by the firm and other market participants over a prolonged period of adverse equity market conditions .
regulatory capital the board of governors of the federal reserve system ( the 201cfederal reserve 201d ) establishes capital requirements , including well-capitalized standards for the consolidated financial holding company .

the office of the comptroller of the currency ( 201cocc 201d ) establishes similar capital requirements and standards for the firm 2019s national banks , including jpmorgan chase bank , n.a. , and chase bank usa , n.a .

the federal reserve granted the firm , for a period of 18 months fol- lowing the bear stearns merger , relief up to a certain specified amount and subject to certain conditions from the federal reserve 2019s risk-based capital and leverage requirements with respect to bear stearns 2019 risk-weighted assets and other exposures acquired .
the amount of such relief is subject to reduction by one-sixth each quarter subsequent to the merger and expires on october 1 , 2009 .

the occ granted jpmorgan chase bank , n.a .
similar relief from its risk-based capital and leverage requirements .
jpmorgan chase maintained a well-capitalized position , based upon tier 1 and total capital ratios at december 31 , 2008 and 2007 , as indicated in the tables below .
for more information , see note 30 on pages 212 2013213 of this annual report .
risk-based capital components and assets .

( a ) the fasb has been deliberating certain amendments to both sfas 140 and fin 46r that may impact the accounting for transactions that involve qspes and vies .

based on the provisions of the current proposal and the firm 2019s interpretation of the propos- al , the firm estimates that the impact of consolidation could be up to $ 70 billion of credit card receivables , $ 40 billion of assets related to firm-sponsored multi-seller conduits , and $ 50 billion of other loans ( including residential mortgages ) ; the decrease in the tier 1 capital ratio could be approximately 80 basis points .

the ulti- mate impact could differ significantly due to the fasb 2019s continuing deliberations on the final requirements of the rule and market conditions.

 |
| table | december 31 ( in millions )   | 2008      | 2007
----------------------------- | --------- | ---------
total tier 1capital ( a )     | $ 136104  | $ 88746
total tier 2 capital          | 48616     | 43496
total capital                 | $ 184720  | $ 132242
risk-weighted assets          | $ 1244659 | $ 1051879
total adjusted average assets | 1966895   | 1473541 |


| _id | dd4c4f5de |
| title |  |
| text | on a geographic basis , the 1% ( 1 % ) increase in net sales reflects higher net sales in north america and emea , partially offset by lower net sales in asia .
the increase in net sales in north america was driven primarily by higher sales of digital entertainment devices , partially offset by lower demand for iden infrastructure equipment driven by customer expenditures returning to historic trends compared to an exceptionally strong 2005 .

the increase in net sales in emea was driven primarily by higher sales of digital entertainment devices .
the decrease in net sales in asia was due , in part , to delays in the granting of 3g licenses in china that led service providers to slow their near-term capital investment , as well as competitive pricing pressure .

net sales in north america continued to comprise a significant portion of the segment 2019s business , accounting for approximately 56% ( 56 % ) of the segment 2019s total net sales in 2006 , compared to approximately 55% ( 55 % ) of the segment 2019s total net sales in 2005 .
the segment reported operating earnings of $ 787 million in 2006 , compared to operating earnings of $ 1.2 billion in 2005 .

the 36% ( 36 % ) decrease in operating earnings was primarily due to : ( i ) a decrease in gross margin , due to an unfavorable product/regional mix and competitive pricing in the wireless networks market , and ( ii ) an increase in other charges ( income ) from an increase in reorganization of business charges , primarily related to employee severance , and from a legal reserve .

as a percentage of net sales in 2006 as compared to 2005 , gross margin , sg&a expenses , r&d expenditures and operating margin all decreased .
in 2006 , net sales to the segment 2019s top five customers , which included sprint nextel , comcast corporation , verizon , kddi and china mobile , represented 45% ( 45 % ) of the segment 2019s total net sales .
the segment 2019s backlog was $ 3.2 billion at december 31 , 2006 , compared to $ 2.4 billion at december 31 , 2005 .

the increase in backlog is primarily due to strong orders for our digital and hd/dvr set-tops .
in the market for digital entertainment devices , demand for the segment 2019s products depends primarily on the level of capital spending by broadband operators for constructing , rebuilding or upgrading their communications systems , and for offering advanced services .

in 2006 , our digital video customers significantly increased their purchases of the segment 2019s products and services , primarily due to increased demand for digital video set-tops , particularly hd/dvr set-tops .

during 2006 , the segment completed a number of significant acquisitions , including : ( i ) kreatel communications ab , a leading developer of innovative ip-based digital set-tops and software , ( ii ) nextnet wireless , inc. , a former clearwire corporation subsidiary and a leading provider of ofdm-based non-line-of-sight ( 201cnlos 201d ) wireless broadband infrastructure equipment , ( iii ) broadbus technologies , inc. , a provider of technology solutions for television on demand , and ( iv ) vertasent

for television on demand , and ( iv ) vertasent llc , a software developer for managing technology elements for switched digital video networks .

these acquisitions did not have a material impact on the segment results in 2006 .

enterprise mobility solutions segment the enterprise mobility solutions segment designs , manufactures , sells , installs and services analog and digital two-way radio , voice and data communications products and systems for private networks , wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of enterprise markets , including government and public safety agencies ( which , together with all sales to distributors of two-way communications products , are referred to as

communications products , are referred to as the 201cgovernment and public safety market 201d ) , as well as retail , utility , transportation , manufacturing , healthcare and other commercial customers ( which , collectively , are referred to as the 201ccommercial enterprise market 201d ) .

in 2007 , the segment 2019s net sales represented 21% ( 21 % ) of the company 2019s consolidated net sales , compared to 13% ( 13 % ) in 2006 and 14% ( 14 % ) in 2005 .
( dollars in millions ) 2007 2006 2005 2007 20142006 2006 20142005 years ended december 31 percent change .

segment results 20142007 compared to 2006 in 2007 , the segment 2019s net sales increased 43% ( 43 % ) to $ 7.7 billion , compared to $ 5.4 billion in 2006 .
the 43% ( 43 % ) increase in net sales was primarily due to increased net sales in the commercial enterprise market , driven by the net sales from the symbol business acquired in january 2007 .
net sales in the government and public safety market increased 6% ( 6 % ) , primarily due to strong demand in north america .

on a geographic basis , net sales increased in all regions .
62 management 2019s discussion and analysis of financial condition and results of operations

 |
| table | ( dollars in millions ) | years ended december 31 2007 | years ended december 31 2006 | years ended december 31 2005 | years ended december 31 2007 20142006 | 2006 20142005
----------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | -------------
segment net sales       | $ 7729                       | $ 5400                       | $ 5038                       | 43% ( 43 % )                          | 7% ( 7 % )
operating earnings      | 1213                         | 958                          | 860                          | 27% ( 27 % )                          | 11% ( 11 % ) |


| _id | dd4bc62ca |
| title |  |
| text | pension expense .

pension expense decreased from the prior year due to lower pension settlements , lower loss amortization , primarily from favorable asset experience and the impact of higher discount rates , partially offset by lower expected returns on assets .
special items ( settlements , termination benefits , and curtailments ) decreased from the prior year primarily due to lower pension settlement losses .

in fiscal year 2019 , special items of $ 7.2 included pension settlement losses of $ 6.4 , of which $ 5.0 was recorded during the second quarter and related to the u.s .
supplementary pension plan , and $ .8 of termination benefits .
these amounts are reflected within "other non- operating income ( expense ) , net" on the consolidated income statements .

in fiscal year 2018 , special items of $ 48.9 included a pension settlement loss of $ 43.7 primarily in connection with the transfer of certain pension assets and payment obligations for our u.s .
salaried and hourly plans to an insurer during the fourth quarter , $ 4.8 of pension settlement losses related to lump sum payouts from the u.s .
supplementary pension plan , and $ .4 of termination benefits .
u.k .

u.k .
lloyds equalization ruling on 26 october 2018 , the united kingdom high court issued a ruling related to the equalization of pension plan participants 2019 benefits for the gender effects of guaranteed minimum pensions .
as a result of this ruling , we estimated the impact of retroactively increasing benefits in our u.k .
plan in accordance with the high court ruling .

plan in accordance with the high court ruling .
we treated the additional benefits as a prior service cost , which resulted in an increase to our projected benefit obligation and accumulated other comprehensive loss of $ 4.7 during the first quarter of fiscal year 2019 .
we are amortizing this cost over the average remaining life expectancy of the u.k .
participants .

participants .
2020 outlook in fiscal year 2020 , we expect pension expense to be approximately $ 5 to $ 20 , which includes expected pension settlement losses of $ 5 to $ 10 , depending on the timing of retirements .
the expected range reflects lower expected interest cost and higher total assets , partially offset by higher expected loss amortization primarily due to the impact of lower discount rates .

in fiscal year 2020 , we expect pension expense to include approximately $ 105 for amortization of actuarial losses .
in fiscal year 2019 , pension expense included amortization of actuarial losses of $ 76.2 .
net actuarial losses of $ 424.4 were recognized in accumulated other comprehensive income in fiscal year 2019 .
actuarial ( gains ) losses are amortized into pension expense over prospective periods to the extent they are not offset by future gains or losses .

future changes in the discount rate and actual returns on plan assets different from expected returns would impact the actuarial ( gains ) losses and resulting amortization in years beyond fiscal year 2020 .
pension funding pension funding includes both contributions to funded plans and benefit payments for unfunded plans , which are primarily non-qualified plans .

with respect to funded plans , our funding policy is that contributions , combined with appreciation and earnings , will be sufficient to pay benefits without creating unnecessary surpluses .
in addition , we make contributions to satisfy all legal funding requirements while managing our capacity to benefit from tax deductions attributable to plan contributions .

with the assistance of third-party actuaries , we analyze the liabilities and demographics of each plan , which help guide the level of contributions .
during 2019 and 2018 , our cash contributions to funded plans and benefit payments for unfunded plans were $ 40.2 and $ 68.3 , respectively .
for fiscal year 2020 , cash contributions to defined benefit plans are estimated to be $ 30 to $ 40 .

the estimate is based on expected contributions to certain international plans and anticipated benefit payments for unfunded plans , which are dependent upon the timing of retirements .
actual future contributions will depend on future funding legislation , discount rates , investment performance , plan design , and various other factors .
refer to the contractual obligations discussion on page 37 for a projection of future contributions.

 |
| table | | 2019           | 2018
--------------------------------------------------------------------- | -------------- | --------------
pension expense including special items noted below                   | $ 27.6         | $ 91.8
settlements termination benefits and curtailments ( "special items" ) | 7.2            | 48.9
weighted average discount rate 2013 service cost                      | 3.4% ( 3.4 % ) | 3.2% ( 3.2 % )
weighted average discount rate 2013 interest cost                     | 3.4% ( 3.4 % ) | 2.9% ( 2.9 % )
weighted average expected rate of return on plan assets               | 6.4% ( 6.4 % ) | 6.9% ( 6.9 % )
weighted average expected rate of compensation increase               | 3.5% ( 3.5 % ) | 3.5% ( 3.5 % ) |


| _id | dd4c2423a |
| title |  |
| text | management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) the effect of foreign exchange rate changes on cash and cash equivalents included in the consolidated statements of cash flows resulted in a decrease of $ 156.1 in 2015 .
the decrease was primarily a result of the u.s .

the decrease was primarily a result of the u.s .
dollar being stronger than several foreign currencies , including the australian dollar , brazilian real , canadian dollar , euro and south african rand as of december 31 , 2015 compared to december 31 , 2014. .

liquidity outlook we expect our cash flow from operations , cash and cash equivalents to be sufficient to meet our anticipated operating requirements at a minimum for the next twelve months .
we also have a committed corporate credit facility as well as uncommitted facilities available to support our operating needs .

we continue to maintain a disciplined approach to managing liquidity , with flexibility over significant uses of cash , including our capital expenditures , cash used for new acquisitions , our common stock repurchase program and our common stock dividends .
from time to time , we evaluate market conditions and financing alternatives for opportunities to raise additional funds or otherwise improve our liquidity profile , enhance our financial flexibility and manage market risk .

our ability to access the capital markets depends on a number of factors , which include those specific to us , such as our credit rating , and those related to the financial markets , such as the amount or terms of available credit .
there can be no guarantee that we would be able to access new sources of liquidity on commercially reasonable terms , or at all .

funding requirements our most significant funding requirements include our operations , non-cancelable operating lease obligations , capital expenditures , acquisitions , common stock dividends , taxes and debt service .
additionally , we may be required to make payments to minority shareholders in certain subsidiaries if they exercise their options to sell us their equity interests .

notable funding requirements include : 2022 debt service 2013 our 2.25% ( 2.25 % ) senior notes in aggregate principal amount of $ 300.0 mature on november 15 , 2017 , and a $ 22.6 note classified within our other notes payable is due on june 30 , 2017 .
we expect to use available cash to fund the retirement of the outstanding notes upon maturity .
the remainder of our debt is primarily long-term , with maturities scheduled through 2024 .

see the table below for the maturity schedule of our long-term debt .
2022 acquisitions 2013 we paid cash of $ 52.1 , net of cash acquired of $ 13.6 , for acquisitions completed in 2016 .
we also paid $ 0.5 in up-front payments and $ 59.3 in deferred payments for prior-year acquisitions as well as ownership increases in our consolidated subsidiaries .
in addition to potential cash expenditures for new acquisitions , we expect to pay approximately $ 77.0 in 2017 related to prior-year acquisitions .

we may also be required to pay approximately $ 31.0 in 2017 related to put options held by minority shareholders if exercised .
we will continue to evaluate strategic opportunities to grow and continue to strengthen our market position , particularly in our digital and marketing services offerings , and to expand our presence in high-growth and key strategic world markets .

2022 dividends 2013 during 2016 , we paid four quarterly cash dividends of $ 0.15 per share on our common stock , which corresponded to aggregate dividend payments of $ 238.4 .
on february 10 , 2017 , we announced that our board of directors ( the 201cboard 201d ) had declared a common stock cash dividend of $ 0.18 per share , payable on march 15 , 2017 to holders of record as of the close of business on march 1 , 2017 .

assuming we pay a quarterly dividend of $ 0.18 per share and there is no significant change in the number of outstanding shares as of december 31 , 2016 , we would expect to pay approximately $ 280.0 over the next twelve months.

 |
| table | balance sheet data                              | december 31 , 2016 | december 31 , 2015
----------------------------------------------- | ------------------ | ------------------
cash cash equivalents and marketable securities | $ 1100.6           | $ 1509.7
short-term borrowings                           | $ 85.7             | $ 132.9
current portion of long-term debt               | 323.9              | 1.9
long-term debt                                  | 1280.7             | 1610.3
total debt                                      | $ 1690.3           | $ 1745.1 |


| _id | dd4ba8144 |
| title |  |
| text | higher average borrowings .
additionally , the recapitalization that occurred late in the first quarter of 2005 resulted in a full year of interest in 2006 as compared to approximately ten months in 2005 .
the increase in interest expense in 2005 as compared to 2004 also resulted from the recapitalization in 2005 .
income tax expense income tax expense totaled $ 150.2 million , $ 116.1 million and $ 118.3 million for 2006 , 2005 and 2004 , respectively .

this resulted in an effective tax rate of 37.2% ( 37.2 % ) , 37.2% ( 37.2 % ) and 37.6% ( 37.6 % ) for 2006 , 2005 and 2004 , respectively .
net earnings net earnings totaled $ 259.1 million , $ 196.6 and $ 189.4 million for 2006 , 2005 and 2004 , respectively , or $ 1.37 , $ 1.53 and $ 1.48 per diluted share , respectively .
segment results of operations transaction processing services ( in thousands ) .

revenues for the transaction processing services segment are derived from three main revenue channels ; enterprise solutions , integrated financial solutions and international .
revenues from transaction processing services totaled $ 2458.8 million , $ 1208.4 and $ 892.0 million for 2006 , 2005 and 2004 , respectively .

the overall segment increase of $ 1250.4 million during 2006 , as compared to 2005 was primarily attributable to the certegy merger which contributed $ 1067.2 million to the overall increase .
the majority of the remaining 2006 growth is attributable to organic growth within the historically owned integrated financial solutions and international revenue channels , with international including $ 31.9 million related to the newly formed business process outsourcing operation in brazil .

the overall segment increase of $ 316.4 in 2005 as compared to 2004 results from the inclusion of a full year of results for the 2004 acquisitions of aurum , sanchez , kordoba , and intercept , which contributed $ 301.1 million of the increase .
cost of revenues for the transaction processing services segment totaled $ 1914.1 million , $ 904.1 million and $ 667.1 million for 2006 , 2005 and 2004 , respectively .

the overall segment increase of $ 1010.0 million during 2006 as compared to 2005 was primarily attributable to the certegy merger which contributed $ 848.2 million to the increase .
gross profit as a percentage of revenues ( 201cgross margin 201d ) was 22.2% ( 22.2 % ) , 25.2% ( 25.2 % ) and 25.2% ( 25.2 % ) for 2006 , 2005 and 2004 , respectively .

the decrease in gross profit in 2006 as compared to 2005 is primarily due to the february 1 , 2006 certegy merger , which businesses typically have lower margins than those of the historically owned fis businesses .
incremental intangible asset amortization relating to the certegy merger also contributed to the decrease in gross margin .
included in cost of revenues was depreciation and amortization of $ 272.4 million , $ 139.8 million , and $ 94.6 million for 2006 , 2005 and 2004 , respectively .

selling , general and administrative expenses totaled $ 171.1 million , $ 94.9 million and $ 99.6 million for 2006 , 2005 and 2004 , respectively .
the increase in 2006 compared to 2005 is primarily attributable to the certegy merger which contributed $ 73.7 million to the overall increase of $ 76.2 million .
the decrease of $ 4.7 million in 2005 as compared to 2004 is primarily attributable to the effect of acquisition related costs in 2004 .

included in selling , general and administrative expenses was depreciation and amortization of $ 11.0 million , $ 9.1 million and $ 2.3 million for 2006 , 2005 and 2004 , respectively.

 |
| table | | 2006      | 2005      | 2004
------------------------------------------- | --------- | --------- | --------
processing and services revenues            | $ 2458777 | $ 1208430 | $ 892033
cost of revenues                            | 1914148   | 904124    | 667078
gross profit                                | 544629    | 304306    | 224955
selling general and administrative expenses | 171106    | 94889     | 99581
research and development costs              | 70879     | 85702     | 54038
operating income                            | $ 302644  | $ 123715  | $ 71336 |


| _id | dd497de0a |
| title |  |
| text | entergy corporation and subsidiaries notes to financial statements ( a ) consists of pollution control revenue bonds and environmental revenue bonds , some of which are secured by collateral first mortgage bonds .
( b ) these notes do not have a stated interest rate , but have an implicit interest rate of 4.8% ( 4.8 % ) .
( c ) pursuant to the nuclear waste policy act of 1982 , entergy 2019s nuclear owner/licensee subsidiaries have contracts with the doe for spent nuclear fuel disposal service .

the contracts include a one-time fee for generation prior to april 7 , 1983 .
entergy arkansas is the only entergy company that generated electric power with nuclear fuel prior to that date and includes the one-time fee , plus accrued interest , in long-term debt .
( d ) see note 10 to the financial statements for further discussion of the waterford 3 and grand gulf lease obligations .

( e ) the fair value excludes lease obligations of $ 109 million at entergy louisiana and $ 34 million at system energy , long-term doe obligations of $ 181 million at entergy arkansas , and the note payable to nypa of $ 35 million at entergy , and includes debt due within one year .
fair values are classified as level 2 in the fair value hierarchy discussed in note 16 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades .

the annual long-term debt maturities ( excluding lease obligations and long-term doe obligations ) for debt outstanding as of december 31 , 2015 , for the next five years are as follows : amount ( in thousands ) .

in november 2000 , entergy 2019s non-utility nuclear business purchased the fitzpatrick and indian point 3 power plants in a seller-financed transaction .
entergy issued notes to nypa with seven annual installments of approximately $ 108 million commencing one year from the date of the closing , and eight annual installments of $ 20 million commencing eight years from the date of the closing .
these notes do not have a stated interest rate , but have an implicit interest rate of 4.8% ( 4.8 % ) .

in accordance with the purchase agreement with nypa , the purchase of indian point 2 in 2001 resulted in entergy becoming liable to nypa for an additional $ 10 million per year for 10 years , beginning in september 2003 .
this liability was recorded upon the purchase of indian point 2 in september 2001 .

as part of the purchase agreement with nypa , entergy recorded a liability representing the net present value of the payments entergy would be liable to nypa for each year that the fitzpatrick and indian point 3 power plants would run beyond their respective original nrc license expiration date .
with the planned shutdown of fitzpatrick at the end of its current fuel cycle , entergy reduced this liability by $ 26.4 million in 2015 pursuant to the terms of the purchase agreement .

under a provision in a letter of credit supporting these notes , if certain of the utility operating companies or system energy were to default on other indebtedness , entergy could be required to post collateral to support the letter of credit .
entergy louisiana , entergy mississippi , entergy texas , and system energy have obtained long-term financing authorizations from the ferc that extend through october 2017 .

entergy arkansas has obtained long-term financing authorization from the apsc that extends through december 2018 .
entergy new orleans has obtained long-term financing authorization from the city council that extends through july 2016 .
capital funds agreement pursuant to an agreement with certain creditors , entergy corporation has agreed to supply system energy with sufficient capital to:

 |
| table | | amount ( in thousands )
---- | -----------------------
2016 | $ 204079
2017 | $ 766451
2018 | $ 822690
2019 | $ 768588
2020 | $ 1631181 |


| _id | dd4b9dc1c |
| title |  |
| text | advance auto parts , inc .
and subsidiaries notes to consolidated financial statements 2013 ( continued ) december 30 , 2006 , december 31 , 2005 and january 1 , 2005 ( in thousands , except per share data ) 8 .
inventories , net inventories are stated at the lower of cost or market , cost being determined using the last-in , first-out ( "lifo" ) method for approximately 93% ( 93 % ) of inventories at both december 30 , 2006 and december 31 , 2005 .

under the lifo method , the company 2019s cost of sales reflects the costs of the most currently purchased inventories while the inventory carrying balance represents the costs relating to prices paid in prior years .
the company 2019s costs to acquire inventory have been generally decreasing in recent years as a result of its significant growth .
accordingly , the cost to replace inventory is less than the lifo balances carried for similar product .

as a result of the lifo method and the ability to obtain lower product costs , the company recorded a reduction to cost of sales of $ 9978 for fiscal year ended 2006 , an increase in cost of sales of $ 526 for fiscal year ended 2005 and a reduction to cost of sales of $ 11212 for fiscal year ended 2004 .
the remaining inventories are comprised of product cores , which consist of the non-consumable portion of certain parts and batteries and are valued under the first-in , first-out ( "fifo" ) method .

core values are included as part of our merchandise costs and are either passed on to the customer or returned to the vendor .
additionally , these products are not subject to the frequent cost changes like our other merchandise inventory , thus , there is no material difference from applying either the lifo or fifo valuation methods .
the company capitalizes certain purchasing and warehousing costs into inventory .

purchasing and warehousing costs included in inventory , at fifo , at december 30 , 2006 and december 31 , 2005 , were $ 95576 and $ 92833 , respectively .
inventories consist of the following : december 30 , december 31 , 2006 2005 .

replacement cost approximated fifo cost at december 30 , 2006 and december 31 , 2005 .
inventory quantities are tracked through a perpetual inventory system .
the company uses a cycle counting program in all distribution centers , parts delivered quickly warehouses , or pdqs , local area warehouses , or laws , and retail stores to ensure the accuracy of the perpetual inventory quantities of both merchandise and core inventory .

the company establishes reserves for estimated shrink based on historical accuracy and effectiveness of the cycle counting program .
the company also establishes reserves for potentially excess and obsolete inventories based on current inventory levels and the historical analysis of product sales and current market conditions .

the nature of the company 2019s inventory is such that the risk of obsolescence is minimal and excess inventory has historically been returned to the company 2019s vendors for credit .
the company provides reserves when less than full credit is expected from a vendor or when liquidating product will result in retail prices below recorded costs .
the company 2019s reserves against inventory for these matters were $ 31376 and $ 22825 at december 30 , 2006 and december 31 , 2005 , respectively .
9 .

9 .
property and equipment : property and equipment are stated at cost , less accumulated depreciation .
expenditures for maintenance and repairs are charged directly to expense when incurred ; major improvements are capitalized .
when items are sold or retired , the related cost and accumulated depreciation are removed from the accounts , with any gain or loss reflected in the consolidated statements of operations .

depreciation of land improvements , buildings , furniture , fixtures and equipment , and vehicles is provided over the estimated useful lives , which range from 2 to 40 years , of the respective assets using the straight-line method.

 |
| table | | december 30 2006 | december 31 2005
---------------------------------------- | ---------------- | ----------------
inventories at fifo net                  | $ 1380573        | $ 1294310
adjustments to state inventories at lifo | 82767            | 72789
inventories at lifo net                  | $ 1463340        | $ 1367099 |


| _id | dd4c1311a |
| title |  |
| text | republic services , inc .
notes to consolidated financial statements 2014 ( continued ) 16 .
financial instruments fuel hedges we have entered into multiple swap agreements designated as cash flow hedges to mitigate some of our exposure related to changes in diesel fuel prices .
these swaps qualified for , and were designated as , effective hedges of changes in the prices of forecasted diesel fuel purchases ( fuel hedges ) .

the following table summarizes our outstanding fuel hedges as of december 31 , 2013 : year gallons hedged weighted average contract price per gallon .

if the national u.s .
on-highway average price for a gallon of diesel fuel as published by the department of energy exceeds the contract price per gallon , we receive the difference between the average price and the contract price ( multiplied by the notional gallons ) from the counterparty .
if the average price is less than the contract price per gallon , we pay the difference to the counterparty .

the fair values of our fuel hedges are determined using standard option valuation models with assumptions about commodity prices being based on those observed in underlying markets ( level 2 in the fair value hierarchy ) .

the aggregate fair values of our outstanding fuel hedges as of december 31 , 2013 and 2012 were current assets of $ 6.7 million and $ 3.1 million , respectively , and current liabilities of $ 0.1 million and $ 0.4 million , respectively , and have been recorded in other prepaid expenses and other current assets and other accrued liabilities in our consolidated balance sheets , respectively .

the ineffective portions of the changes in fair values resulted in ( losses ) gains of less than $ 0.1 million for the years ended december 31 , 2013 , 2012 and 2011 , and have been recorded in other income ( expense ) , net in our consolidated statements of income .
total gain ( loss ) recognized in other comprehensive income for fuel hedges ( the effective portion ) was $ 2.4 million , $ 3.4 million and $ ( 1.7 ) million , for the years ended december 31 , 2013 , 2012 and 2011 , respectively .

recycling commodity hedges our revenue from sale of recycling commodities is primarily from sales of old corrugated cardboard ( occ ) and old newspaper ( onp ) .
we use derivative instruments such as swaps and costless collars designated as cash flow hedges to manage our exposure to changes in prices of these commodities .
we have entered into multiple agreements related to the forecasted occ and onp sales .

the agreements qualified for , and were designated as , effective hedges of changes in the prices of certain forecasted recycling commodity sales ( commodity hedges ) .
we entered into costless collar agreements on forecasted sales of occ and onp .
the agreements involve combining a purchased put option giving us the right to sell occ and onp at an established floor strike price with a written call option obligating us to deliver occ and onp at an established cap strike price .

the puts and calls have the same settlement dates , are net settled in cash on such dates and have the same terms to expiration .
the contemporaneous combination of options resulted in no net premium for us and represent costless collars .

under these agreements , we will make or receive no payments as long as the settlement price is between the floor price and cap price ; however , if the settlement price is above the cap , we will pay the counterparty an amount equal to the excess of the settlement price over the cap times the monthly volumes hedged .
if the settlement price

 |
| table | year | gallons hedged | weighted average contractprice per gallon
---- | -------------- | -----------------------------------------
2014 | 27000000       | $ 3.81
2015 | 18000000       | 3.74
2016 | 12000000       | 3.68 |


| _id | dd4b952d8 |
| title |  |
| text | entergy corporation and subsidiaries management's financial discussion and analysis net revenue 2004 compared to 2003 net revenue , which is entergy's measure of gross margin , consists of operating revenues net of : 1 ) fuel , fuel-related , and purchased power expenses and 2 ) other regulatory credits .
following is an analysis of the change in net revenue comparing 2004 to 2003. .

the volume/weather variance resulted primarily from increased usage , partially offset by the effect of milder weather on sales during 2004 compared to 2003 .
billed usage increased a total of 2261 gwh in the industrial and commercial sectors .
the summer capacity charges variance was due to the amortization in 2003 at entergy gulf states and entergy louisiana of deferred capacity charges for the summer of 2001 .
entergy gulf states' amortization began in june 2002 and ended in may 2003 .

entergy louisiana's amortization began in august 2002 and ended in july 2003 .
base rates increased net revenue due to a base rate increase at entergy new orleans that became effective in june 2003 .
the deferred fuel cost revisions variance resulted primarily from a revision in 2003 to an unbilled sales pricing estimate to more closely align the fuel component of that pricing with expected recoverable fuel costs at entergy louisiana .

deferred fuel cost revisions also decreased net revenue due to a revision in 2004 to the estimate of fuel costs filed for recovery at entergy arkansas in the march 2004 energy cost recovery rider .
the price applied to unbilled sales variance resulted from a decrease in fuel price in 2004 caused primarily by the effect of nuclear plant outages in 2003 on average fuel costs .

gross operating revenues and regulatory credits gross operating revenues include an increase in fuel cost recovery revenues of $ 475 million and $ 18 million in electric and gas sales , respectively , primarily due to higher fuel rates in 2004 resulting from increases in the market prices of purchased power and natural gas .
as such , this revenue increase is offset by increased fuel and purchased power expenses .

other regulatory credits increased primarily due to the following : 2022 cessation of the grand gulf accelerated recovery tariff that was suspended in july 2003 ; 2022 the amortization in 2003 of deferred capacity charges for summer 2001 power purchases at entergy gulf states and entergy louisiana ; 2022 the deferral in 2004 of $ 14.3 million of capacity charges related to generation resource planning as allowed by the lpsc ; 2022 the deferral in 2004 by entergy louisiana of $ 11.4 million related to the

louisiana of $ 11.4 million related to the voluntary severance program , in accordance with a proposed stipulation entered into with the lpsc staff ; and

 |
| table | | ( in millions )
------------------------------- | ---------------
2003 net revenue                | $ 4214.5
volume/weather                  | 68.3
summer capacity charges         | 17.4
base rates                      | 10.6
deferred fuel cost revisions    | -46.3 ( 46.3 )
price applied to unbilled sales | -19.3 ( 19.3 )
other                           | -1.2 ( 1.2 )
2004 net revenue                | $ 4244.0 |


| _id | dd4974b0c |
| title |  |
| text | annual report 2013 duke realty corporation 37 in addition to the capitalization of overhead costs discussed above , we also capitalized $ 16.8 million , $ 9.4 million and $ 4.3 million of interest costs in the years ended december 31 , 2013 , 2012 and 2011 , respectively .
the following table summarizes our second generation capital expenditures by reportable operating segment ( in thousands ) : .

both our first and second generation expenditures vary significantly between leases on a per square foot basis , dependent upon several factors including the product type , the nature of a tenant's operations , the specific physical characteristics of each individual property as well as the market in which the property is located .
second generation expenditures related to the 79 suburban office buildings that were sold in the blackstone office disposition totaled $ 26.2 million in 2011 .

dividends and distributions we are required to meet the distribution requirements of the internal revenue code of 1986 , as amended ( the "code" ) , in order to maintain our reit status .
we paid dividends of $ 0.68 per common share for each of the years ended december 31 , 2013 , 2012 and 2011 .
we expect to continue to distribute at least an amount equal to our taxable earnings , to meet the requirements to maintain our reit status , and additional amounts as determined by our board of directors .

distributions are declared at the discretion of our board of directors and are subject to actual cash available for distribution , our financial condition , capital requirements and such other factors as our board of directors deems relevant .
at december 31 , 2013 we had three series of preferred stock outstanding .
the annual dividend rates on our preferred shares range between 6.5% ( 6.5 % ) and 6.625% ( 6.625 % ) and are paid quarterly in arrears .

in february 2013 , we redeemed all of our outstanding series o shares for a total payment of $ 178.0 million , thus reducing our future quarterly dividend commitments by $ 3.7 million .
in march 2012 , we redeemed all of our 6.950% ( 6.950 % ) series m cumulative redeemable preferred shares ( "series m shares" ) for a total payment of $ 168.3 million , thus reducing our future quarterly dividend commitments by $ 2.9 million .

in july 2011 , we redeemed all of our 7.25% ( 7.25 % ) series n cumulative redeemable preferred shares ( "series n shares" ) for a total payment of $ 108.6 million , thus reducing our future quarterly dividend commitments by $ 2.0 million .
debt maturities debt outstanding at december 31 , 2013 had a face value totaling $ 4.3 billion with a weighted average interest rate of 5.49% ( 5.49 % ) and with maturity dates ranging between 2014 and 2028 .

of this total amount , we had $ 3.1 billion of unsecured debt , $ 1.1 billion of secured debt and $ 88.0 million outstanding on the drlp unsecured line of credit at december 31 , 2013 .
we made scheduled and unscheduled principal payments of $ 1.0 billion on outstanding debt during the year ended december 31 , 2013.

 |
| table | | 2013    | 2012    | 2011
----------------------------------------- | ------- | ------- | -------
industrial                                | $ 41971 | $ 33095 | $ 34872
office                                    | 46600   | 30092   | 63933
medical office                            | 3106    | 641     | 410
non-reportable rental operations segments | 121     | 56      | 49
total                                     | $ 91798 | $ 63884 | $ 99264 |


| _id | dd4977a32 |
| title |  |
| text | liquidity and capital resources we maintained a strong financial position throughout fiscal year 2019 .
as of 30 september 2019 , our consolidated balance sheet included cash and cash items of $ 2248.7 .
we continue to have consistent access to commercial paper markets , and cash flows from operating and financing activities are expected to meet liquidity needs for the foreseeable future .

as of 30 september 2019 , we had $ 971.5 of foreign cash and cash items compared to a total amount of cash and cash items of $ 2248.7 .
as a result of the tax act , we do not expect that a significant portion of our foreign subsidiaries' and affiliates' earnings will be subject to u.s .
income tax upon subsequent repatriation to the united states .

the repatriation of these earnings may be subject to foreign withholding and other taxes depending on the country in which the subsidiaries and affiliates reside .
however , because we have significant current investment plans outside the u.s. , it is our intent to permanently reinvest the majority of our foreign cash and cash items that would be subject to additional taxes outside the u.s .
refer to note 23 , income taxes , for additional information .

the table below summarizes our cash flows from operating activities , investing activities , and financing activities from continuing operations as reflected on the consolidated statements of cash flows: .

operating activities for the fiscal year ended 30 september 2019 , cash provided by operating activities was $ 2969.9 .

income from continuing operations of $ 1760.0 was adjusted for items including depreciation and amortization , deferred income taxes , impacts from the tax act , a charge for the facility closure of one of our customers , undistributed earnings of unconsolidated affiliates , gain on sale of assets and investments , share-based compensation , noncurrent capital lease receivables , and certain other adjustments .

the caption "gain on sale of assets and investments" includes a gain of $ 14.1 recognized on the disposition of our interest in high-tech gases ( beijing ) co. , ltd. , a previously held equity investment in our industrial gases 2013 asia segment .
refer to note 7 , acquisitions , to the consolidated financial statements for additional information .

the working capital accounts were a use of cash of $ 25.3 , primarily driven by $ 69.0 from trade receivables and $ 41.8 from payables and accrued liabilities , partially offset by $ 79.8 from other receivables .
the use of cash within "payables and accrued liabilities" was primarily driven by a $ 48.9 decrease in accrued utilities and a $ 30.3 decrease in accrued interest , partially offset by a $ 51.6 increase in customer advances primarily related to sale of equipment activity .

the decrease in accrued utilities was primarily driven by a contract modification to a tolling arrangement in india and lower utility costs in the industrial gases 2013 americas segment .
the source of cash from other receivables of $ 79.8 was primarily due to the maturities of forward exchange contracts that hedged foreign currency exposures and the collection of value added taxes .

for the fiscal year ended 30 september 2018 , cash provided by operating activities was $ 2547.2 , including income from continuing operations of $ 1455.6 .
other adjustments of $ 131.6 include a $ 54.9 net impact from the remeasurement of intercompany transactions .
the related hedging instruments that eliminate the earnings impact are included as a working capital adjustment in other receivables or payables and accrued liabilities .

in addition , other adjustments were impacted by cash received from the early termination of a cross currency swap of $ 54.4 , as well as the excess of pension expense over pension contributions of $ 23.5 .
the working capital accounts were a use of cash of $ 265.4 , primarily driven by payables and accrued liabilities , inventories , and trade receivables , partially offset by other receivables .

the use of cash in payables and accrued liabilities of $ 277.7 includes a decrease in customer advances of $ 145.7 primarily related to sale of equipment activity and $ 67.1 for maturities of forward exchange contracts that hedged foreign currency exposures .
the use of cash in inventories primarily resulted from the purchase of helium molecules .
in addition , inventories reflect the noncash impact of our change in accounting for u.s .
inventories from lifo to fifo .

inventories from lifo to fifo .
the source of cash from other receivables of $ 128.3 was primarily due to the maturities of forward exchange contracts that hedged foreign currency exposures.

 |
| table | cash provided by ( used for ) | 2019               | 2018
----------------------------- | ------------------ | ------------------
operating activities          | $ 2969.9           | $ 2547.2
investing activities          | -2113.4 ( 2113.4 ) | -1641.6 ( 1641.6 )
financing activities          | -1370.5 ( 1370.5 ) | -1359.8 ( 1359.8 ) |


| _id | dd4bf5f66 |
| title |  |
| text | 14 .
accounting for certain long-lived assets eog reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a depreciation , depletion and amortization group level to the unamortized capitalized cost of the asset .
the carrying rr values for assets determined to be impaired were adjusted to estimated fair value using the income approach described in the fair value measurement topic of the asc .

in certain instances , eog utilizes accepted offers from third-party purchasers as the basis for determining fair value .
during 2017 , proved oil and gas properties with a carrying amount of $ 370 million were written down to their fair value of $ 146 million , resulting in pretax impairment charges of $ 224 million .

during 2016 , proved oil and gas properties with a carrying rr amount of $ 643 million were written down to their fair value of $ 527 million , resulting in pretax impairment charges of $ 116 million .
impairments in 2017 , 2016 and 2015 included domestic legacy natural gas assets .
amortization and impairments of unproved oil and gas property costs , including amortization of capitalized interest , were $ 211 million , $ 291 million and $ 288 million during 2017 , 2016 and 2015 , respectively .
15 .

15 .
asset retirement obligations the following table presents the reconciliation of the beginning and ending aggregate carrying amounts of short-term and long-term legal obligations associated with the retirement of property , plant and equipment for the years ended december 31 , 2017 and 2016 ( in thousands ) : .

( 1 ) includes $ 164 million in 2016 related to yates transaction ( see note 17 ) .
( 2 ) includes settlements related to asset sales .
the current and noncurrent portions of eog's asset retirement obligations are included in current liabilities - other and other liabilities , respectively , on the consolidated balance sheets.

 |
| table | | 2017             | 2016
-------------------------------------- | ---------------- | ----------------
carrying amount at beginning of period | $ 912926         | $ 811554
liabilities incurred ( 1 )             | 54764            | 212739
liabilities settled ( 2 )              | -61871 ( 61871 ) | -94800 ( 94800 )
accretion                              | 34708            | 32306
revisions                              | -9818 ( 9818 )   | -38286 ( 38286 )
foreign currency translations          | 16139            | -10587 ( 10587 )
carrying amount at end of period       | $ 946848         | $ 912926
current portion                        | $ 19259          | $ 18516
noncurrent portion                     | $ 927589         | $ 894410 |


| _id | dd4baad2c |
| title |  |
| text | 30 2018 ppg annual report and 10-k foreign currency translation partially offset by : cost reclassifications associated with the adoption of the new revenue recognition standard .
refer to note 2 , "revenue recognition" within part 2 of this form 10-k cost management including restructuring cost savings 2017 vs .

2016 selling , general and administrative expenses decreased $ 1 million primarily due to : lower net periodic pension and other postretirement benefit costs lower selling and advertising costs restructuring cost savings partially offset by : wage and other cost inflation selling , general and administrative expenses from acquired businesses foreign currency translation other charges and other income .

interest expense , net of interest income interest expense , net of interest income increased $ 10 million in 2018 versus 2017 primarily due to the issuance of long- term debt in early 2018 .
interest expense , net of interest income decreased $ 14 million in 2017 versus 2016 due to lower interest rate debt outstanding in 2017 .

business restructuring , net a pretax restructuring charge of $ 83 million was recorded in the second quarter of 2018 , offset by certain changes in estimates to complete previously recorded programs of $ 17 million .
a pretax charge of $ 191 million was recorded in 2016 .
refer to note 8 , "business restructuring" in item 8 of this form 10-k for additional information .
pension settlement charges during 2017 , ppg made lump-sum payments to certain retirees who had participated in ppg's u.s .

qualified and non- qualified pension plans totaling approximately $ 127 million .
as the lump-sum payments were in excess of the expected 2017 service and interest costs for the affected plans , ppg remeasured the periodic benefit obligation of these plans in the period payments were made and recorded settlement charges totaling $ 60 million ( $ 38 million after-tax ) during 2017 .
during 2016 , ppg permanently transferred approximately $ 1.8 billion of its u.s .

and canadian pension obligations and assets to several highly rated insurance companies .
these actions triggered remeasurement and partial settlement of certain of the company 2019s defined benefit pension plans .
ppg recognized a $ 968 million pre-tax settlement charge in connection with these transactions .
refer to note 13 , "employee benefit plans" in item 8 of this form 10-k for additional information .

other charges other charges in 2018 and 2016 were higher than 2017 primarily due to environmental remediation charges .
these charges were principally for environmental remediation at a former chromium manufacturing plant and associated sites in new jersey .
refer to note 14 , "commitments and contingent liabilities" in item 8 of this form 10-k for additional information .

other income other income was lower in 2018 and 2016 than in 2017 primarily due to the gain from the sale of the mexican plaka business of $ 25 million and income from a legal settlement of $ 18 million in 2017 .
refer to note 3 , "acquisitions and divestitures" in item 8 of this form 10-k for additional information.

 |
| table | ( $ in millions except percentages )    | 2018      | % (  % ) change 2017 | % (  % ) change 2016 | % (  % ) change 2018 vs . 2017 | % (  % ) change 2017 vs . 2016
--------------------------------------- | --------- | -------------------- | -------------------- | ------------------------------ | ------------------------------
interest expense net of interest income | $ 95      | $ 85                 | $ 99                 | 11.8% ( 11.8 % )               | ( 14.1 ) % (  % )
business restructuring net              | $ 66      | $ 2014               | $ 191                | n/a                            | ( 100.0 ) % (  % )
pension settlement charges              | $ 2014    | $ 60                 | $ 968                | ( 100.0 ) % (  % )             | ( 93.8 ) % (  % )
other charges                           | $ 122     | $ 74                 | $ 242                | 64.9% ( 64.9 % )               | ( 69.4 ) % (  % )
other income                            | ( $ 114 ) | ( $ 150 )            | ( $ 127 )            | ( 24.0 ) % (  % )              | 18.1% ( 18.1 % ) |


| _id | dd4ba4062 |
| title |  |
| text | management 2019s discussion and analysis 164 jpmorgan chase & co./2013 annual report firm ) is required to hold more than the additional 2.5% ( 2.5 % ) of tier 1 common .
in addition , basel iii establishes a 6.5% ( 6.5 % ) tier i common equity standard for the definition of 201cwell capitalized 201d under the prompt corrective action ( 201cpca 201d ) requirements of the fdic improvement act ( 201cfdicia 201d ) .
the tier i common equity standard is effective from the first quarter of 2015 .

the following chart presents the basel iii minimum risk-based capital ratios during the transitional periods and on a fully phased-in basis .
the chart also includes management 2019s target for the firm 2019s tier 1 common ratio .
it is the firm 2019s current expectation that its basel iii tier 1 common ratio will exceed the regulatory minimums , both during the transition period and upon full implementation in 2019 and thereafter .

the firm estimates that its tier 1 common ratio under the basel iii advanced approach on a fully phased-in basis would be 9.5% ( 9.5 % ) as of december 31 , 2013 , achieving management 2019s previously stated objectives .
the tier 1 common ratio as calculated under the basel iii standardized approach is estimated at 9.4% ( 9.4 % ) as of december 31 , 2013 .
the tier 1 common ratio under both basel i and basel iii are non-gaap financial measures .

however , such measures are used by bank regulators , investors and analysts to assess the firm 2019s capital position and to compare the firm 2019s capital to that of other financial services companies .
the following table presents a comparison of the firm 2019s tier 1 common under basel i rules to its estimated tier 1 common under the advanced approach of the basel iii rules , along with the firm 2019s estimated risk-weighted assets .

key differences in the calculation of rwa between basel i and basel iii advanced approach include : ( 1 ) basel iii credit risk rwa is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters , whereas basel i rwa is based on fixed supervisory risk- weightings which vary only by counterparty type and asset class ; and ( 2 ) basel iii includes rwa for operational risk , whereas basel i does not .

operational risk capital takes into consideration operational losses in the quarter following the period in which those losses were realized , and the calculation generally incorporates such losses irrespective of whether the issues or business activity giving rise to the losses have been remediated or reduced .
the firm 2019s operational risk capital model continues to be refined in conjunction with the firm 2019s basel iii advanced approach parallel run .

as a result of model enhancements in 2013 , as well as taking into consideration the legal expenses incurred by the firm in 2013 , the firm 2019s operational risk capital increased substantially in 2013 over 2012 .

tier 1 common under basel iii includes additional adjustments and deductions not included in basel i tier 1 common , such as the inclusion of accumulated other comprehensive income ( 201caoci 201d ) related to afs securities and defined benefit pension and other postretirement employee benefit ( 201copeb 201d ) plans .
december 31 , 2013 ( in millions , except ratios ) .

estimated risk-weighted assets under basel iii advanced approach ( b ) $ 1590873 estimated tier 1 common ratio under basel iii advanced approach ( c ) 9.5% ( 9.5 % ) ( a ) certain exposures , which are deducted from capital under basel i , are risked-weighted under basel iii.

 |
| table | tier 1 common under basel i rules                                                                   | $ 148887
--------------------------------------------------------------------------------------------------- | --------------
adjustments related to aoci for afs securities and defined benefit pension and opeb plans           | 1474
add back of basel i deductions ( a )                                                                | 1780
deduction for deferred tax asset related to net operating loss and foreign tax credit carryforwards | -741 ( 741 )
all other adjustments                                                                               | -198 ( 198 )
estimated tier 1 common under basel iii rules                                                       | $ 151202
estimated risk-weighted assets under basel iii advanced approach ( b )                              | $ 1590873
estimated tier 1 common ratio under basel iii advanced approach ( c )                               | 9.5% ( 9.5 % ) |


| _id | dd4bf4468 |
| title |  |
| text | entergy arkansas , inc .
management's financial discussion and analysis operating activities cash flow from operations increased $ 8.8 million in 2004 compared to 2003 primarily due to income tax benefits received in 2004 , and increased recovery of deferred fuel costs .
this increase was substantially offset by money pool activity .

in 2003 , the domestic utility companies and system energy filed , with the irs , a change in tax accounting method notification for their respective calculations of cost of goods sold .
the adjustment implemented a simplified method of allocation of overhead to the production of electricity , which is provided under the irs capitalization regulations .

the cumulative adjustment placing these companies on the new methodology resulted in a $ 1.171 billion deduction for entergy arkansas on entergy's 2003 income tax return .
there was no cash benefit from the method change in 2003 .
in 2004 , entergy arkansas realized $ 173 million in cash tax benefit from the method change .
this tax accounting method change is an issue across the utility industry and will likely be challenged by the irs on audit .

as of december 31 , 2004 , entergy arkansas has a net operating loss ( nol ) carryforward for tax purposes of $ 766.9 million , principally resulting from the change in tax accounting method related to cost of goods sold .
if the tax accounting method change is sustained , entergy arkansas expects to utilize the nol carryforward through 2006 .

cash flow from operations increased $ 80.1 million in 2003 compared to 2002 primarily due to income taxes paid of $ 2.2 million in 2003 compared to income taxes paid of $ 83.9 million in 2002 , and money pool activity .
this increase was partially offset by decreased recovery of deferred fuel costs in 2003 .
entergy arkansas' receivables from or ( payables to ) the money pool were as follows as of december 31 for each of the following years: .

money pool activity used $ 92.7 million of entergy arkansas' operating cash flow in 2004 , provided $ 73.4 million in 2003 , and provided $ 19.5 million in 2002 .
see note 4 to the domestic utility companies and system energy financial statements for a description of the money pool .

investing activities the decrease of $ 68.1 million in net cash used in investing activities in 2004 compared to 2003 was primarily due to a decrease in construction expenditures resulting from less transmission upgrade work requested by merchant generators in 2004 combined with lower spending on customer support projects in 2004 .

the increase of $ 88.1 million in net cash used in investing activities in 2003 compared to 2002 was primarily due to an increase in construction expenditures of $ 57.4 million and the maturity of $ 38.4 million of other temporary investments in the first quarter of 2002 .

construction expenditures increased in 2003 primarily due to the following : 2022 a ferc ruling that shifted responsibility for transmission upgrade work performed for independent power producers to entergy arkansas ; and 2022 the ano 1 steam generator , reactor vessel head , and transformer replacement project .

financing activities the decrease of $ 90.7 million in net cash used in financing activities in 2004 compared to 2003 was primarily due to the net redemption of $ 2.4 million of long-term debt in 2004 compared to $ 109.3 million in 2003 , partially offset by the payment of $ 16.2 million more in common stock dividends during the same period.

 |
| table | 2004             | 2003             | 2002             | 2001
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 23561          | ( $ 69153 )      | $ 4279           | $ 23794 |


| _id | dd4c308dc |
| title |  |
| text | management 2019s discussion and analysis we believe our credit ratings are primarily based on the credit rating agencies 2019 assessment of : 2030 our liquidity , market , credit and operational risk management practices ; 2030 the level and variability of our earnings ; 2030 our capital base ; 2030 our franchise , reputation and management ; 2030 our corporate governance ; and 2030 the external operating environment , including the assumed level of government support .

certain of the firm 2019s derivatives have been transacted under bilateral agreements with counterparties who may require us to post collateral or terminate the transactions based on changes in our credit ratings .
we assess the impact of these bilateral agreements by determining the collateral or termination payments that would occur assuming a downgrade by all rating agencies .

a downgrade by any one rating agency , depending on the agency 2019s relative ratings of the firm at the time of the downgrade , may have an impact which is comparable to the impact of a downgrade by all rating agencies .

we allocate a portion of our gce to ensure we would be able to make the additional collateral or termination payments that may be required in the event of a two-notch reduction in our long-term credit ratings , as well as collateral that has not been called by counterparties , but is available to them .

the table below presents the additional collateral or termination payments related to our net derivative liabilities under bilateral agreements that could have been called at the reporting date by counterparties in the event of a one-notch and two-notch downgrade in our credit ratings. .

in millions 2013 2012 additional collateral or termination payments for a one-notch downgrade $ 911 $ 1534 additional collateral or termination payments for a two-notch downgrade 2989 2500 cash flows as a global financial institution , our cash flows are complex and bear little relation to our net earnings and net assets .

consequently , we believe that traditional cash flow analysis is less meaningful in evaluating our liquidity position than the excess liquidity and asset-liability management policies described above .
cash flow analysis may , however , be helpful in highlighting certain macro trends and strategic initiatives in our businesses .
year ended december 2013 .
our cash and cash equivalents decreased by $ 11.54 billion to $ 61.13 billion at the end of 2013 .

we generated $ 4.54 billion in net cash from operating activities .
we used net cash of $ 16.08 billion for investing and financing activities , primarily to fund loans held for investment and repurchases of common stock .
year ended december 2012 .
our cash and cash equivalents increased by $ 16.66 billion to $ 72.67 billion at the end of 2012 .
we generated $ 9.14 billion in net cash from operating and investing activities .

we generated $ 7.52 billion in net cash from financing activities from an increase in bank deposits , partially offset by net repayments of unsecured and secured long-term borrowings .
year ended december 2011 .
our cash and cash equivalents increased by $ 16.22 billion to $ 56.01 billion at the end of 2011 .
we generated $ 23.13 billion in net cash from operating and investing activities .

we used net cash of $ 6.91 billion for financing activities , primarily for repurchases of our series g preferred stock and common stock , partially offset by an increase in bank deposits .
goldman sachs 2013 annual report 89

 |
| table | in millions                                                             | as of december 2013 | as of december 2012
----------------------------------------------------------------------- | ------------------- | -------------------
additional collateral or termination payments for a one-notch downgrade | $ 911               | $ 1534
additional collateral or termination payments for a two-notch downgrade | 2989                | 2500 |


| _id | dd4bdfe5a |
| title |  |
| text | notes to consolidated financial statements in march 2008 , the fasb issued guidance which requires entities to provide greater transparency about ( a ) how and why an entity uses derivative instruments , ( b ) how derivative instruments and related hedged items are accounted , and ( c ) how derivative instruments and related hedged items affect an entity 2019s financial position , results of operations , and cash flows .
this guidance was effective on january 1 , 2009 .

this guidance was effective on january 1 , 2009 .
the adoption of this guidance did not have a material impact on our consolidated financial statements .
in june 2009 , the fasb issued guidance on accounting for transfers of financial assets .

this guidance amends various components of the existing guidance governing sale accounting , including the recog- nition of assets obtained and liabilities assumed as a result of a transfer , and considerations of effective control by a transferor over transferred assets .
in addition , this guidance removes the exemption for qualifying special purpose entities from the consolidation guidance .
this guidance is effective january 1 , 2010 , with early adoption prohibited .

while the amended guidance governing sale accounting is applied on a prospec- tive basis , the removal of the qualifying special purpose entity exception will require us to evaluate certain entities for consolidation .
while we are evaluating the effect of adoption of this guidance , we currently believe that its adoption will not have a material impact on our consolidated financial statement .

in june 2009 , the fasb amended the guidance for determin- ing whether an entity is a variable interest entity , or vie , and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a vie .

under this guidance , an entity would be required to consolidate a vie if it has ( i ) the power to direct the activities that most significantly impact the entity 2019s economic performance and ( ii ) the obligation to absorb losses of the vie or the right to receive benefits from the vie that could be significant to the vie .
this guidance is effective for the first annual reporting period that begins after november 15 , 2009 , with early adoption prohibited .

while we are currently evaluating the effect of adoption of this guidance , we currently believe that its adoption will not have a material impact on our consoli- dated financial statements .
note 3 / property acquisitions 2009 acquisitions during 2009 , we acquired the sub-leasehold positions at 420 lexington avenue for an aggregate purchase price of approximately $ 15.9 million .

2008 acquisitions in february 2008 , we , through our joint venture with jeff sutton , acquired the properties located at 182 broadway and 63 nassau street for approximately $ 30.0 million in the aggregate .
these properties are located adjacent to 180 broadway which we acquired in august 2007 .
as part of the acquisition we also closed on a $ 31.0 million loan which bears interest at 225 basis points over the 30-day libor .
the loan has a three-year term and two one-year extensions .

we drew down $ 21.1 mil- lion at the closing to pay the balance of the acquisition costs .
during the second quarter of 2008 , we , through a joint ven- ture with nysters , acquired various interests in the fee positions at 919 third avenue for approximately $ 32.8 million .
as a result , our joint venture controls the entire fee position .
2007 acquisitions in january 2007 , we acquired reckson for approximately $ 6.0 billion , inclusive of transaction costs .

simultaneously , we sold approximately $ 2.0 billion of the reckson assets to an asset purchasing venture led by certain of reckson 2019s former executive management .
the transaction included the acquisition of 30 properties encompassing approximately 9.2 million square feet , of which five properties encompassing approxi- mately 4.2 million square feet are located in manhattan .

the following summarizes our allocation of the purchase price to the assets and liabilities acquired from reckson ( in thousands ) : .

 |
| table | land                                  | $ 766727
------------------------------------- | ---------
building                              | 3724962
investment in joint venture           | 65500
structured finance investments        | 136646
acquired above-market leases          | 24661
other assets net of other liabilities | 30473
acquired in-place leases              | 175686
assets acquired                       | 4924655
acquired below-market leases          | 422177
minority interest                     | 401108
liabilities acquired                  | 823285
net assets acquired                   | $ 4101370 |


| _id | dd4c18b10 |
| title |  |
| text | gain on land sales are derived from sales of undeveloped land owned by us .
we pursue opportunities to dispose of land in markets with a high concentration of undeveloped land and in those markets where the land no longer meets our strategic development plans .
the increase was partially attributable to a land sale to a current corporate tenant for potential future expansion .

we recorded $ 424000 and $ 560000 of impairment charges associated with contracts to sell land parcels for the years ended december 31 , 2004 and 2003 , respectively .
as of december 31 , 2004 , only one parcel on which we recorded impairment charges is still owned by us .
we anticipate selling this parcel in the first quarter of 2005 .
discontinued operations we have classified operations of 86 buildings as discontinued operations as of december 31 , 2004 .

these 86 buildings consist of 69 industrial , 12 office and five retail properties .
as a result , we classified net income from operations , net of minority interest , of $ 1.6 million , $ 6.3 million and $ 10.7 million as net income from discontinued operations for the years ended december 31 , 2004 , 2003 and 2002 , respectively .

in addition , 41 of the properties classified in discontinued operations were sold during 2004 , 42 properties were sold during 2003 , two properties were sold during 2002 and one operating property is classified as held-for-sale at december 31 , 2004 .
the gains on disposal of these properties , net of impairment adjustment and minority interest , of $ 23.9 million and $ 11.8 million for the years ended december 31 , 2004 and 2003 , respectively , are also reported in discontinued operations .

for the year ended december 31 , 2002 , a $ 4.5 million loss on disposal of properties , net of impairment adjustments and minority interest , is reported in discontinued operations due to impairment charges of $ 7.7 million recorded on three properties in 2002 that were later sold in 2003 and 2004 .

comparison of year ended december 31 , 2003 to year ended december 31 , 2002 rental income from continuing operations rental income from continuing operations increased from $ 652.8 million in 2002 to $ 689.3 million in 2003 .
the following table reconciles rental income by reportable segment to our total reported rental income from continuing operations for the years ended december 31 , 2003 and 2002 ( in thousands ) : .

although our three reportable segments comprising rental operations ( office , industrial and retail ) are all within the real estate industry , they are not necessarily affected by the same economic and industry conditions .
for example , our retail segment experienced high occupancies and strong overall performance during 2003 , while our office and industrial segments reflected the weaker economic environment for those property types .

the primary causes of the increase in rental income from continuing operations , with specific references to a particular segment when applicable , are summarized below : 25cf during 2003 , in-service occupancy improved from 87.1% ( 87.1 % ) at the end of 2002 to 89.3% ( 89.3 % ) at the end of 2003 .
the second half of 2003 was highlighted by a significant increase in the industrial portfolio occupancy of 2.1% ( 2.1 % ) along with a slight increase in office portfolio occupancy of 0.9% ( 0.9 % ) .

25cf lease termination fees totaled $ 27.4 million in 2002 compared to $ 16.2 million in 2003 .
most of this decrease was attributable to the office segment , which recognized $ 21.1 million of termination fees in 2002 as compared to $ 11.8 million in 2003 .
lease termination fees relate to specific tenants that pay a fee to terminate their lease obligations before the end of the contractual lease term .

the high volume of termination fees in 2002 was reflective of the contraction of the business of large office users during that year and their desire to downsize their use of office space .
the decrease in termination fees for 2003 was indicative of an improving economy and a more stable financial position of our tenants .
25cf during the year ended 2003 , we acquired $ 232 million of properties totaling 2.1 million square feet .

the acquisitions were primarily class a office buildings in existing markets with overall occupancy near 90% ( 90 % ) .
revenues associated with these acquisitions totaled $ 11.9 million in 2003 .
in addition , revenues from 2002 acquisitions totaled $ 15.8 million in 2003 compared to $ 4.8 million in 2002 .
this significant increase is primarily due to a large office acquisition that closed at the end of december 2002 .

25cf developments placed in-service in 2003 provided revenues of $ 6.6 million , while revenues associated with developments placed in-service in 2002 totaled $ 13.7 million in 2003 compared to $ 4.7 million in 25cf proceeds from dispositions of held for rental properties totaled $ 126.1 million in 2003 , compared to $ 40.9 million in 2002 .
these properties generated revenue of $ 12.5 million in 2003 versus $ 19.6 million in 2002 .

equity in earnings of unconsolidated companies equity in earnings represents our ownership share of net income from investments in unconsolidated companies .
these joint ventures generally own and operate rental properties and hold land for development .
these earnings decreased from $ 27.2 million in 2002 to $ 23.7 million in 2003 .
this decrease is a result of the following significant activity:

 |
| table | | 2003     | 2002
---------- | -------- | --------
office     | $ 419962 | $ 393810
industrial | 259762   | 250391
retail     | 5863     | 4733
other      | 3756     | 3893
total      | $ 689343 | $ 652827 |