| _id | dd4c0632a |
| title |  |
| text | standardized maintenance based on an industry trade publication , we operate the eighth largest vocational fleet in the united states .
as of december 31 , 2014 , our average fleet age in years , by line of business , was as follows : approximate number of vehicles approximate average age .

through standardization of core functions , we believe we can minimize variability in our maintenance processes resulting in higher vehicle quality while extending the service life of our fleet .
we believe operating a more reliable , safer and efficient fleet will lower our operating costs .
we have implemented standardized maintenance programs for approximately 60% ( 60 % ) of our fleet maintenance operations as of december 31 , 2014 .

cash utilization strategy key components of our cash utilization strategy include increasing free cash flow and improving our return on invested capital .
our definition of free cash flow , which is not a measure determined in accordance with united states generally accepted accounting principles ( u.s .
gaap ) , is cash provided by operating activities less purchases of property and equipment , plus proceeds from sales of property and equipment as presented in our consolidated statements of cash flows .

for a discussion and reconciliation of free cash flow , you should read the 201cfree cash flow 201d section of our management 2019s discussion and analysis of financial condition and results of operations contained in item 7 of this form 10-k .
we believe free cash flow drives shareholder value and provides useful information regarding the recurring cash provided by our operations .

free cash flow also demonstrates our ability to execute our cash utilization strategy , which includes investments in acquisitions and returning a majority of free cash flow to our shareholders through dividends and share repurchases .
we are committed to an efficient capital structure and maintaining our investment grade credit ratings .

we manage our free cash flow by ensuring that capital expenditures and operating asset levels are appropriate in light of our existing business and growth opportunities , and by closely managing our working capital , which consists primarily of accounts receivable , accounts payable , and accrued landfill and environmental costs .
dividends in july 2003 , our board of directors initiated a quarterly cash dividend of $ 0.04 per share .

our quarterly dividend has increased from time to time thereafter , the latest increase occurring in july 2014 to $ 0.28 per share , representing a 7.7% ( 7.7 % ) increase over that of the prior year .
over the last 5 years , our dividend has increased at a compounded annual growth rate of 8.1% ( 8.1 % ) .
we expect to continue paying quarterly cash dividends and may consider additional dividend increases if we believe they will enhance shareholder value .

share repurchases in october 2013 , our board of directors added $ 650 million to the existing share repurchase authorization originally approved in november 2010 .
from november 2010 to december 31 , 2014 , we used $ 1439.5 million to repurchase 46.6 million shares of our common stock at a weighted average cost per share of $ 30.88 .
as of december 31 , 2014 , there were $ 360.2 million remaining under our share repurchase authorization .

during 2015 , we expect to use our remaining authorization to repurchase more of our outstanding common stock.

 |
| table | | approximate number of vehicles | approximate average age
----------- | ------------------------------ | -----------------------
residential | 7600                           | 7
commercial  | 4300                           | 7
industrial  | 3900                           | 9
total       | 15800                          | 7.5 |


| _id | dd4bcb644 |
| title |  |
| text | notes to the consolidated financial statements on march 18 , 2008 , ppg completed a public offering of $ 600 million in aggregate principal amount of its 5.75% ( 5.75 % ) notes due 2013 ( the 201c2013 notes 201d ) , $ 700 million in aggregate principal amount of its 6.65% ( 6.65 % ) notes due 2018 ( the 201c2018 notes 201d ) and $ 250 million in aggregate principal amount of its 7.70% ( 7.70 % ) notes due 2038 ( the 201c2038 notes 201d and , together with the 2013 notes and the 2018 notes , the 201cnotes

the 2013 notes and the 2018 notes , the 201cnotes 201d ) .

the notes were offered by the company pursuant to its existing shelf registration .
the proceeds of this offering of $ 1538 million ( net of discount and issuance costs ) and additional borrowings of $ 195 million under the 20ac650 million revolving credit facility were used to repay existing debt , including certain short-term debt and the amounts outstanding under the 20ac1 billion bridge loan .
no further amounts can be borrowed under the 20ac1 billion bridge loan .

the discount and issuance costs related to the notes , which totaled $ 12 million , will be amortized to interest expense over the respective lives of the notes .
short-term debt outstanding as of december 31 , 2008 and 2007 , was as follows : ( millions ) 2008 2007 .

total $ 784 $ 1818 ( 1 ) borrowings under this facility have a term of 30 days and can be rolled over monthly until the facility expires in 2010 .
ppg is in compliance with the restrictive covenants under its various credit agreements , loan agreements and indentures .
the company 2019s revolving credit agreements include a financial ratio covenant .

the covenant requires that the amount of total indebtedness not exceed 60% ( 60 % ) of the company 2019s total capitalization excluding the portion of accumulated other comprehensive income ( loss ) related to pensions and other postretirement benefit adjustments .
as of december 31 , 2008 , total indebtedness was 45% ( 45 % ) of the company 2019s total capitalization excluding the portion of accumulated other comprehensive income ( loss ) related to pensions and other postretirement benefit adjustments .

additionally , substantially all of the company 2019s debt agreements contain customary cross- default provisions .
those provisions generally provide that a default on a debt service payment of $ 10 million or more for longer than the grace period provided ( usually 10 days ) under one agreement may result in an event of default under other agreements .
none of the company 2019s primary debt obligations are secured or guaranteed by the company 2019s affiliates .

interest payments in 2008 , 2007 and 2006 totaled $ 228 million , $ 102 million and $ 90 million , respectively .
rental expense for operating leases was $ 267 million , $ 188 million and $ 161 million in 2008 , 2007 and 2006 , respectively .
the primary leased assets include paint stores , transportation equipment , warehouses and other distribution facilities , and office space , including the company 2019s corporate headquarters located in pittsburgh , pa .

minimum lease commitments for operating leases that have initial or remaining lease terms in excess of one year as of december 31 , 2008 , are ( in millions ) $ 126 in 2009 , $ 107 in 2010 , $ 82 in 2011 , $ 65 in 2012 , $ 51 in 2013 and $ 202 thereafter .
the company had outstanding letters of credit of $ 82 million as of december 31 , 2008 .

the letters of credit secure the company 2019s performance to third parties under certain self-insurance programs and other commitments made in the ordinary course of business .
as of december 31 , 2008 and 2007 guarantees outstanding were $ 70 million .
the guarantees relate primarily to debt of certain entities in which ppg has an ownership interest and selected customers of certain of the company 2019s businesses .
a portion of such debt is secured by the assets of the related entities .

the carrying values of these guarantees were $ 9 million and $ 3 million as of december 31 , 2008 and 2007 , respectively , and the fair values were $ 40 million and $ 17 million , as of december 31 , 2008 and 2007 , respectively .
the company does not believe any loss related to these letters of credit or guarantees is likely .
10 .

10 .
financial instruments , excluding derivative financial instruments included in ppg 2019s financial instrument portfolio are cash and cash equivalents , cash held in escrow , marketable equity securities , company-owned life insurance and short- and long-term debt instruments .

the fair values of the financial instruments approximated their carrying values , in the aggregate , except for long-term long-term debt ( excluding capital lease obligations ) , had carrying and fair values totaling $ 3122 million and $ 3035 million , respectively , as of december 31 , 2008 .
the corresponding amounts as of december 31 , 2007 , were $ 1201 million and $ 1226 million , respectively .

the fair values of the debt instruments were based on discounted cash flows and interest rates currently available to the company for instruments of the same remaining maturities .
2008 ppg annual report and form 10-k 45

 |
| table | ( millions )                                                                                | 2008   | 2007
--------------------------------------------------------------------------------------------------- | ------ | ------
20ac1 billion bridge loan agreement 5.2% ( 5.2 % )                                                  | $ 2014 | $ 1047
u.s . commercial paper 5.3% ( 5.3 % ) as of dec . 31 2008                                           | 222    | 617
20ac650 million revolving credit facility weighted average 2.9% ( 2.9 % ) as of dec . 31 2008 ( 1 ) | 200    | 2014
other weighted average 4.0% ( 4.0 % ) as of dec . 31 2008                                           | 362    | 154
total                                                                                | $ 784  | $ 1818 |


| _id | dd4c55196 |
| title |  |
| text | notes to the financial statements as a reduction of debt or accrued interest .
new esop shares that have been released are considered outstanding in computing earnings per common share .
unreleased new esop shares are not considered to be outstanding .
pensions and other postretirement benefits in september 2006 , the fasb issued sfas no .
158 , 201cemployers 2019 accounting for defined benefit pension and other postretirement plans , an amendment of fasb statements no .

87 , 88 , 106 , and 132 ( r ) . 201d under this new standard , a company must recognize a net liability or asset to report the funded status of its defined benefit pension and other postretirement benefit plans on its balance sheets as well as recognize changes in that funded status , in the year in which the changes occur , through charges or credits to comprehensive income .
sfas no .

sfas no .
158 does not change how pensions and other postretirement benefits are accounted for and reported in the income statement .
ppg adopted the recognition and disclosure provisions of sfas no .
158 as of dec .
31 , 2006 .
the following table presents the impact of applying sfas no .
158 on individual line items in the balance sheet as of dec .
31 , 2006 : ( millions ) balance sheet caption : before application of sfas no .
158 ( 1 ) adjustments application of sfas no .
158 .

other postretirement benefits ( 619 ) ( 409 ) ( 1028 ) accumulated other comprehensive loss 480 505 985 ( 1 ) represents balances that would have been recorded under accounting standards prior to the adoption of sfas no .
158 .
see note 13 , 201cpensions and other postretirement benefits , 201d for additional information .
derivative financial instruments and hedge activities the company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet .

the accounting for changes in the fair value of a derivative depends on the use of the derivative .
to the extent that a derivative is effective as a cash flow hedge of an exposure to future changes in value , the change in fair value of the derivative is deferred in accumulated other comprehensive ( loss ) income .
any portion considered to be ineffective is reported in earnings immediately .

to the extent that a derivative is effective as a hedge of an exposure to future changes in fair value , the change in the derivative 2019s fair value is offset in the statement of income by the change in fair value of the item being hedged .

to the extent that a derivative or a financial instrument is effective as a hedge of a net investment in a foreign operation , the change in the derivative 2019s fair value is deferred as an unrealized currency translation adjustment in accumulated other comprehensive ( loss ) income .
product warranties the company accrues for product warranties at the time the associated products are sold based on historical claims experience .
as of dec .

as of dec .
31 , 2006 and 2005 , the reserve for product warranties was $ 10 million and $ 4 million , respectively .
pretax charges against income for product warranties in 2006 , 2005 and 2004 totaled $ 4 million , $ 5 million and $ 4 million , respectively .
cash outlays related to product warranties were $ 5 million , $ 4 million and $ 4 million in 2006 , 2005 and 2004 , respectively .

in addition , $ 7 million of warranty obligations were assumed as part of the company 2019s 2006 business acquisitions .
asset retirement obligations an asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition , construction , development or normal operation of that long-lived asset .

we recognize asset retirement obligations in the period in which they are incurred , if a reasonable estimate of fair value can be made .
the asset retirement obligation is subsequently adjusted for changes in fair value .
the associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life .

ppg 2019s asset retirement obligations are primarily associated with closure of certain assets used in the chemicals manufacturing process .
as of dec .
31 , 2006 and 2005 the accrued asset retirement obligation was $ 10 million and as of dec .
31 , 2004 it was $ 9 million .
in march 2005 , the fasb issued fasb interpretation ( 201cfin 201d ) no .
47 , 201caccounting for conditional asset retirement obligations , an interpretation of fasb statement no .
143 201d .
fin no .

143 201d .
fin no .
47 clarifies the term conditional asset retirement obligation as used in sfas no .
143 , 201caccounting for asset retirement obligations 201d , and provides further guidance as to when an entity would have sufficient information to reasonably estimate the fair value of an asset retirement obligation .
effective dec .
31 , 2005 , ppg adopted the provisions of fin no .
47 .

47 .
our only conditional asset retirement obligation relates to the possible future abatement of asbestos contained in certain ppg production facilities .
the asbestos in our production facilities arises from the application of normal and customary building practices in the past when the facilities were constructed .
this asbestos is encapsulated in place and , as a result , there is no current legal requirement to abate it .

inasmuch as there is no requirement to abate , we do not have any current plans or an intention to abate and therefore the timing , method and cost of future abatement , if any , are not 40 2006 ppg annual report and form 10-k 4282_txt

 |
| table | ( millions ) balance sheet caption:  | before application of sfas no . 158 ( 1 ) | adjustments  | after application of sfas no . 158
------------------------------------ | ----------------------------------------- | ------------ | ----------------------------------
other assets                         | $ 494                                     | $ 105        | $ 599
deferred income tax liability        | -193 ( 193 )                              | 57           | -136 ( 136 )
accrued pensions                     | -371 ( 371 )                              | -258 ( 258 ) | -629 ( 629 )
other postretirement benefits        | -619 ( 619 )                              | -409 ( 409 ) | -1028 ( 1028 )
accumulated other comprehensive loss | 480                                       | 505          | 985 |


| _id | dd4b8c6e2 |
| title |  |
| text | table of contents valero energy corporation notes to consolidated financial statements ( continued ) 11 .
equity share activity activity in the number of shares of common stock and treasury stock was as follows ( in millions ) : common treasury .

preferred stock we have 20 million shares of preferred stock authorized with a par value of $ 0.01 per share .
no shares of preferred stock were outstanding as of december 31 , 2018 or 2017 .
treasury stock we purchase shares of our common stock as authorized under our common stock purchase program ( described below ) and to meet our obligations under employee stock-based compensation plans .

on july 13 , 2015 , our board of directors authorized us to purchase $ 2.5 billion of our outstanding common stock with no expiration date , and we completed that program during 2017 .
on september 21 , 2016 , our board of directors authorized our purchase of up to an additional $ 2.5 billion with no expiration date , and we completed that program during 2018 .

on january 23 , 2018 , our board of directors authorized our purchase of up to an additional $ 2.5 billion ( the 2018 program ) with no expiration date .
during the years ended december 31 , 2018 , 2017 , and 2016 , we purchased $ 1.5 billion , $ 1.3 billion , and $ 1.3 billion , respectively , of our common stock under our programs .
as of december 31 , 2018 , we have approval under the 2018 program to purchase approximately $ 2.2 billion of our common stock .

common stock dividends on january 24 , 2019 , our board of directors declared a quarterly cash dividend of $ 0.90 per common share payable on march 5 , 2019 to holders of record at the close of business on february 13 , 2019 .

valero energy partners lp units on september 16 , 2016 , vlp entered into an equity distribution agreement pursuant to which vlp offered and sold from time to time their common units having an aggregate offering price of up to $ 350 million based on amounts , at prices , and on terms determined by market conditions and other factors at the time of

 |
| table | | commonstock | treasurystock
------------------------------------------------------------- | ----------- | -------------
balance as of december 31 2015                                | 673         | -200 ( 200 )
transactions in connection withstock-based compensation plans | 2014        | 1
stock purchases under purchase program                        | 2014        | -23 ( 23 )
balance as of december 31 2016                                | 673         | -222 ( 222 )
transactions in connection withstock-based compensation plans | 2014        | 1
stock purchases under purchase programs                       | 2014        | -19 ( 19 )
balance as of december 31 2017                                | 673         | -240 ( 240 )
stock purchases under purchase programs                       | 2014        | -16 ( 16 )
balance as of december 31 2018                                | 673         | -256 ( 256 ) |


| _id | dd4bd135a |
| title |  |
| text | 4 4 m a n a g e m e n t 2019 s d i s c u s s i o n notes to table ( continued ) ( a ) ( continued ) management believes that operating income , as adjusted , and operating margin , as adjusted , are effective indicators of blackrock 2019s financial performance over time .
as such , management believes that operating income , as adjusted , and operating margin , as adjusted , provide useful disclosure to investors .

operating income , as adjusted : bgi transaction and integration costs recorded in 2010 and 2009 consist principally of certain advisory payments , compensation expense , legal fees , marketing and promotional , occupancy and consulting expenses incurred in conjunction with the bgi transaction .
restructuring charges recorded in 2009 and 2008 consist of compensation costs , occupancy costs and professional fees .

the expenses associated with restructuring and bgi transaction and integration costs have been deemed non-recurring by management and have been excluded from operating income , as adjusted , to help enhance the comparability of this information to the current reporting periods .
as such , management believes that operating margins exclusive of these costs are useful measures in evaluating blackrock 2019s operating performance for the respective periods .

the portion of compensation expense associated with certain long-term incentive plans ( 201cltip 201d ) that will be funded through the distribution to participants of shares of blackrock stock held by pnc and a merrill lynch cash compensation contribution , a portion of which has been received , have been excluded because these charges ultimately do not impact blackrock 2019s book value .

compensation expense associated with appreciation/ ( depreciation ) on investments related to certain blackrock deferred compensation plans has been excluded as returns on investments set aside for these plans , which substantially offset this expense , are reported in non-operating income ( expense ) .

operating margin , as adjusted : operating income used for measuring operating margin , as adjusted , is equal to operating income , as adjusted , excluding the impact of closed-end fund launch costs and commissions .
management believes that excluding such costs and commissions is useful because these costs can fluctuate considerably and revenues associated with the expenditure of these costs will not fully impact the company 2019s results until future periods .

operating margin , as adjusted , allows the company to compare performance from period-to-period by adjusting for items that may not recur , recur infrequently or may fluctuate based on market movements , such as restructuring charges , transaction and integration costs , closed-end fund launch costs , commissions paid to certain employees as compensation and fluctua- tions in compensation expense based on mark-to-market movements in investments held to fund certain compensation plans .

the company also uses operating margin , as adjusted , to monitor corporate performance and efficiency and as a benchmark to compare its performance to other companies .
management uses both the gaap and non-gaap financial measures in evaluating the financial performance of blackrock .
the non-gaap measure by itself may pose limitations because it does not include all of the company 2019s revenues and expenses .

revenue used for operating margin , as adjusted , excludes distribution and servicing costs paid to related parties and other third parties .
management believes that excluding such costs is useful to blackrock because it creates consistency in the treatment for certain contracts for similar services , which due to the terms of the contracts , are accounted for under gaap on a net basis within investment advisory , administration fees and securities lending revenue .

amortization of deferred sales commissions is excluded from revenue used for operating margin measurement , as adjusted , because such costs , over time , offset distribution fee revenue earned by the company .
reimbursable property management compensation represented com- pensation and benefits paid to personnel of metric property management , inc .
( 201cmetric 201d ) , a subsidiary of blackrock realty advisors , inc .
( 201crealty 201d ) .

( 201crealty 201d ) .
prior to the transfer in 2008 , these employees were retained on metric 2019s payroll when certain properties were acquired by realty 2019s clients .
the related compensation and benefits were fully reimbursed by realty 2019s clients and have been excluded from revenue used for operating margin , as adjusted , because they did not bear an economic cost to blackrock .

for each of these items , blackrock excludes from revenue used for operating margin , as adjusted , the costs related to each of these items as a proxy for such offsetting revenues .

( b ) non-operating income ( expense ) , less net income ( loss ) attributable to non-controlling interests , as adjusted : non-operating income ( expense ) , less net income ( loss ) attributable to non-controlling interests ( 201cnci 201d ) , as adjusted , equals non-operating income ( expense ) , gaap basis , less net income ( loss ) attributable to nci , gaap basis , adjusted for compensation expense associated with depreciation/ ( appreciation ) on investments related to certain blackrock deferred

investments related to certain blackrock deferred compensation plans .

the compensation expense offset is recorded in operating income .
this compensation expense has been included in non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , to offset returns on investments set aside for these plans , which are reported in non-operating income ( expense ) , gaap basis. .

non-operating income ( expense ) ( 1 ) 36 ( 28 ) ( 422 ) compensation expense related to ( appreciation ) / depreciation on deferred compensation plans ( 11 ) ( 18 ) 38 non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted $ 25 ( $ 46 ) ( $ 384 ) ( 1 ) net of net income ( loss ) attributable to non-controlling interests .

management believes that non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides for comparability of this information to prior periods and is an effective measure for reviewing blackrock 2019s non-operating contribution to its results .

as compensation expense associated with ( appreciation ) /depreciation on investments related to certain deferred compensation plans , which is included in operating income , offsets the gain/ ( loss ) on the investments set aside for these plans , management believes that non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides a useful measure , for both management and investors , of blackrock 2019s non-operating results that impact book value.

 |
| table | ( dollar amounts in millions )                                                                | yearended december 31 , 2010 | yearended december 31 , 2009 | yearended december 31 , 2008
--------------------------------------------------------------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------
non-operating income ( expense ) gaap basis                                                   | $ 23                         | $ -6 ( 6 )                   | $ -577 ( 577 )
less : net income ( loss ) attributable to nci                                                | -13 ( 13 )                   | 22                           | -155 ( 155 )
non-operating income ( expense ) ( 1 )                                                        | 36                           | -28 ( 28 )                   | -422 ( 422 )
compensation expense related to ( appreciation ) /depreciation on deferred compensation plans | -11 ( 11 )                   | -18 ( 18 )                   | 38
non-operating income ( expense ) less net income ( loss ) attributable to nci as adjusted     | $ 25                         | $ -46 ( 46 )                 | $ -384 ( 384 ) |


| _id | dd497b29a |
| title |  |
| text | repurchase of equity securities the following table provides information regarding our purchases of equity securities during the fourth quarter of 2008 : number of shares purchased average paid per share2 total number of shares purchased as part of publicly announced plans or programs maximum number of shares that may yet be purchased under the plans or programs .

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47022 $ 5.18 2014 2014 1 consists of restricted shares of our common stock withheld under the terms of grants under employee stock compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares during each month of the fourth quarter of 2008 ( the 201cwithheld shares 201d ) .

2 the average price per month of the withheld shares was calculated by dividing the aggregate value of the tax withholding obligations for each month by the aggregate number of shares of our common stock withheld each month.

 |
| table | | total number of shares purchased | average price paid per share2 | total number of shares purchased as part of publicly announced plans or programs | maximum number ofshares that may yet be purchased under the plans or programs
------------- | -------------------------------- | ----------------------------- | -------------------------------------------------------------------------------- | -----------------------------------------------------------------------------
october 1-31  | 29704                            | $ 5.99                        | 2014                                                                             | 2014
november 1-30 | 4468                             | $ 3.24                        | 2014                                                                             | 2014
december 1-31 | 12850                            | $ 3.98                        | 2014                                                                             | 2014
total1        | 47022                            | $ 5.18                        | 2014                                                                             | 2014 |


| _id | dd4b8d15a |
| title |  |
| text | table of contents ( 2 ) includes capitalized lease obligations of $ 3.2 million and $ 0.1 million as of december 31 , 2015 and 2014 , respectively , which are included in other liabilities on the consolidated balance sheet .
( 3 ) ebitda is defined as consolidated net income before interest expense , income tax expense , depreciation and amortization .
adjusted ebitda , which is a measure defined in our credit agreements , means ebitda adjusted for certain items which are described in the table below .

we have included a reconciliation of ebitda and adjusted ebitda in the table below .
both ebitda and adjusted ebitda are considered non-gaap financial measures .
generally , a non-gaap financial measure is a numerical measure of a company 2019s performance , financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with gaap .

non-gaap measures used by us may differ from similar measures used by other companies , even when similar terms are used to identify such measures .
we believe that ebitda and adjusted ebitda provide helpful information with respect to our operating performance and cash flows including our ability to meet our future debt service , capital expenditures and working capital requirements .

adjusted ebitda is also the primary measure used in certain key covenants and definitions contained in the credit agreement governing our senior secured term loan facility ( 201cterm loan 201d ) , including the excess cash flow payment provision , the restricted payment covenant and the net leverage ratio .

these covenants and definitions are material components of the term loan as they are used in determining the interest rate applicable to the term loan , our ability to make certain investments , incur additional debt , and make restricted payments , such as dividends and share repurchases , as well as whether we are required to make additional principal prepayments on the term loan beyond the quarterly amortization payments .

for further details regarding the term loan , see note 8 ( long-term debt ) to the accompanying consolidated financial statements .
the following unaudited table sets forth reconciliations of net income to ebitda and ebitda to adjusted ebitda for the periods presented: .

net loss on extinguishment of long-term debt ( a ) 24.3 90.7 64.0 17.2 118.9 loss ( income ) from equity investments ( b ) 10.1 ( 2.2 ) ( 0.6 ) ( 0.3 ) ( 0.1 ) acquisition and integration expenses ( c ) 10.2 2014 2014 2014 2014 gain on remeasurement of equity investment ( d ) ( 98.1 ) 2014 2014 2014 2014 other adjustments ( e ) 6.9 9.2 82.7 23.9 21.6 adjusted ebitda ( f ) $ 1018.5 $ 907.0 $ 808.5 $ 766.6 $ 717.3 ( a ) during the years ended december 31 , 2015 , 2014 , 2013 , 2012 , and 2011 , we recorded

, 2014 , 2013 , 2012 , and 2011 , we recorded net losses on extinguishments of long-term debt .

the losses represented the difference between the amount paid upon extinguishment , including call premiums and expenses paid to the debt holders and agents , and the net carrying amount of the extinguished debt , adjusted for a portion of the unamortized deferred financing costs .
( b ) represents our share of net income/loss from our equity investments .

our 35% ( 35 % ) share of kelway 2019s net loss includes our 35% ( 35 % ) share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to the acquisition .
( c ) primarily includes expenses related to the acquisition of kelway .
( d ) represents the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway.

 |
| table | ( in millions )                                    | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
-------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income                                         | $ 403.1                        | $ 244.9                        | $ 132.8                        | $ 119.0                        | $ 17.1
depreciation and amortization                      | 227.4                          | 207.9                          | 208.2                          | 210.2                          | 204.9
income tax expense                                 | 243.9                          | 142.8                          | 62.7                           | 67.1                           | 11.2
interest expense net                               | 159.5                          | 197.3                          | 250.1                          | 307.4                          | 324.2
ebitda                                             | 1033.9                         | 792.9                          | 653.8                          | 703.7                          | 557.4
non-cash equity-based compensation                 | 31.2                           | 16.4                           | 8.6                            | 22.1                           | 19.5
net loss on extinguishment of long-term debt ( a ) | 24.3                           | 90.7                           | 64.0                           | 17.2                           | 118.9
loss ( income ) from equity investments ( b )      | 10.1                           | -2.2 ( 2.2 )                   | -0.6 ( 0.6 )                   | -0.3 ( 0.3 )                   | -0.1 ( 0.1 )
acquisition and integration expenses ( c )         | 10.2                           | 2014                           | 2014                           | 2014                           | 2014
gain on remeasurement of equity investment ( d )   | -98.1 ( 98.1 )                 | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( e )                            | 6.9                            | 9.2                            | 82.7                           | 23.9                           | 21.6
adjusted ebitda ( f )                              | $ 1018.5                       | $ 907.0                        | $ 808.5                        | $ 766.6                        | $ 717.3 |


| _id | dd4be3da2 |
| title |  |
| text | part ii , item 8 schlumberger limited and subsidiaries shares of common stock ( stated in millions ) issued in treasury shares outstanding .

see the notes to consolidated financial statements

 |
| table | | issued | in treasury  | shares outstanding
------------------------------------------------ | ------ | ------------ | ------------------
balance january 1 2007                           | 1334   | -156 ( 156 ) | 1178
shares sold to optionees less shares exchanged   | 2013   | 14           | 14
shares issued under employee stock purchase plan | 2013   | 2            | 2
stock repurchase program                         | 2013   | -16 ( 16 )   | -16 ( 16 )
issued on conversions of debentures              | 2013   | 18           | 18
balance december 31 2007                         | 1334   | -138 ( 138 ) | 1196
shares sold to optionees less shares exchanged   | 2013   | 5            | 5
shares issued under employee stock purchase plan | 2013   | 2            | 2
stock repurchase program                         | 2013   | -21 ( 21 )   | -21 ( 21 )
issued on conversions of debentures              | 2013   | 12           | 12
balance december 31 2008                         | 1334   | -140 ( 140 ) | 1194
shares sold to optionees less shares exchanged   | 2013   | 4            | 4
vesting of restricted stock                      | 2013   | 1            | 1
shares issued under employee stock purchase plan | 2013   | 4            | 4
stock repurchase program                         | 2013   | -8 ( 8 )     | -8 ( 8 )
balance december 31 2009                         | 1334   | -139 ( 139 ) | 1195 |


| _id | dd497b524 |
| title |  |
| text | comparison of cumulative return among lkq corporation , the nasdaq stock market ( u.s. ) index and the peer group .

this stock performance information is "furnished" and shall not be deemed to be "soliciting material" or subject to rule 14a , shall not be deemed "filed" for purposes of section 18 of the securities exchange act of 1934 or otherwise subject to the liabilities of that section , and shall not be deemed incorporated by reference in any filing under the securities act of 1933 or the securities exchange act of 1934 , whether made before or after the date of this report and irrespective of any general

of this report and irrespective of any general incorporation by reference language in any such filing , except to the extent that it specifically incorporates the information by reference .

information about our common stock that may be issued under our equity compensation plans as of december 31 , 2016 included in part iii , item 12 of this annual report on form 10-k is incorporated herein by reference.

 |
| table | | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
--------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
lkq corporation | $ 100      | $ 140      | $ 219      | $ 187      | $ 197      | $ 204
s&p 500 index   | $ 100      | $ 113      | $ 147      | $ 164      | $ 163      | $ 178
peer group      | $ 100      | $ 111      | $ 140      | $ 177      | $ 188      | $ 217 |


| _id | dd49759bc |
| title |  |
| text | n o t e s t o t h e c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 2013 ( continued ) ace limited and subsidiaries excluded from adjusted weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective years .
for the years ended december 31 , 2010 , 2009 , and 2008 , the potential anti-dilutive share conversions were 256868 shares , 1230881 shares , and 638401 shares , respectively .
19 .

19 .
related party transactions the ace foundation 2013 bermuda is an unconsolidated not-for-profit organization whose primary purpose is to fund charitable causes in bermuda .
the trustees are principally comprised of ace management .
the company maintains a non-interest bear- ing demand note receivable from the ace foundation 2013 bermuda , the balance of which was $ 30 million and $ 31 million , at december 31 , 2010 and 2009 , respectively .

the receivable is included in other assets in the accompanying consolidated balance sheets .
the borrower has used the related proceeds to finance investments in bermuda real estate , some of which have been rented to ace employees at rates established by independent , professional real estate appraisers .
the borrower uses income from the investments to both repay the note and to fund charitable activities .

accordingly , the company reports the demand note at the lower of its principal value or the fair value of assets held by the borrower to repay the loan , including the real estate properties .
20 .
statutory financial information the company 2019s insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate .

these regulations include restrictions that limit the amount of dividends or other distributions , such as loans or cash advances , available to shareholders without prior approval of the insurance regulatory authorities .
there are no statutory restrictions on the payment of dividends from retained earnings by any of the bermuda subsidiaries as the minimum statutory capital and surplus requirements are satisfied by the share capital and additional paid-in capital of each of the bermuda subsidiaries .

the company 2019s u.s .
subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators .
statutory accounting differs from gaap in the reporting of certain reinsurance contracts , investments , subsidiaries , acquis- ition expenses , fixed assets , deferred income taxes , and certain other items .
the statutory capital and surplus of the u.s .
subsidiaries met regulatory requirements for 2010 , 2009 , and 2008 .

the amount of dividends available to be paid in 2011 , without prior approval from the state insurance departments , totals $ 850 million .
the following table presents the combined statutory capital and surplus and statutory net income of the bermuda and u.s .
subsidiaries at and for the years ended december 31 , 2010 , 2009 , and 2008. .

as permitted by the restructuring discussed previously in note 7 , certain of the company 2019s u.s .
subsidiaries discount certain a&e liabilities , which increased statutory capital and surplus by approximately $ 206 million , $ 215 million , and $ 211 million at december 31 , 2010 , 2009 , and 2008 , respectively .
the company 2019s international subsidiaries prepare statutory financial statements based on local laws and regulations .

some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements .
in some countries , the company must obtain licenses issued by governmental authorities to conduct local insurance business .
these licenses may be subject to reserves and minimum capital and solvency tests .
jurisdictions may impose fines , censure , and/or criminal sanctions for violation of regulatory requirements.

 |
| table | ( in millions of u.s . dollars ) | bermuda subsidiaries 2010 | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | bermuda subsidiaries 2010 | bermuda subsidiaries 2009 | 2008
-------------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------
statutory capital and surplus    | $ 11798                   | $ 9164                    | $ 6205                    | $ 6266                    | $ 5885                    | $ 5368
statutory net income             | $ 2430                    | $ 2369                    | $ 2196                    | $ 1047                    | $ 904                     | $ 818 |


| _id | dd4bc314c |
| title |  |
| text | a reconciliation of the beginning and ending amount of unrecognized tax benefits , for the periods indicated , is as follows: .

the entire amount of the unrecognized tax benefits would affect the effective tax rate if recognized .
in 2010 , the company favorably settled a 2003 and 2004 irs audit .
the company recorded a net overall tax benefit including accrued interest of $ 25920 thousand .
in addition , the company was also able to take down a $ 12356 thousand fin 48 reserve that had been established regarding the 2003 and 2004 irs audit .
the company is no longer subject to u.s .

the company is no longer subject to u.s .
federal , state and local or foreign income tax examinations by tax authorities for years before 2007 .
the company recognizes accrued interest related to net unrecognized tax benefits and penalties in income taxes .
during the years ended december 31 , 2010 , 2009 and 2008 , the company accrued and recognized a net expense ( benefit ) of approximately $ ( 9938 ) thousand , $ 1563 thousand and $ 2446 thousand , respectively , in interest and penalties .

included within the 2010 net expense ( benefit ) of $ ( 9938 ) thousand is $ ( 10591 ) thousand of accrued interest related to the 2003 and 2004 irs audit .
the company is not aware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date .
for u.s .
income tax purposes the company has foreign tax credit carryforwards of $ 55026 thousand that begin to expire in 2014 .

in addition , for u.s .
income tax purposes the company has $ 41693 thousand of alternative minimum tax credits that do not expire .
management believes that it is more likely than not that the company will realize the benefits of its net deferred tax assets and , accordingly , no valuation allowance has been recorded for the periods presented .

tax benefits of $ 629 thousand and $ 1714 thousand related to share-based compensation deductions for stock options exercised in 2010 and 2009 , respectively , are included within additional paid-in capital of the shareholders 2019 equity section of the consolidated balance sheets.

 |
| table | ( dollars in thousands )                                     | 2010             | 2009             | 2008
------------------------------------------------------------ | ---------------- | ---------------- | -------
balance at january 1                                         | $ 29010          | $ 34366          | $ 29132
additions based on tax positions related to the current year | 7119             | 6997             | 5234
additions for tax positions of prior years                   | -                | -                | -
reductions for tax positions of prior years                  | -                | -                | -
settlements with taxing authorities                          | -12356 ( 12356 ) | -12353 ( 12353 ) | -
lapses of applicable statutes of limitations                 | -                | -                | -
balance at december 31                                       | $ 23773          | $ 29010          | $ 34366 |


| _id | dd496ce98 |
| 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 , 2016 : 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 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 , 2016 and 2015 were current liabilities of $ 2.7 million and $ 37.8 million , respectively , and have been recorded in other accrued liabilities in our consolidated balance sheets .

the ineffective portions of the changes in fair values resulted in a gain of $ 0.8 million for the year ended december 31 , 2016 , and a loss of $ 0.4 million and $ 0.5 million for the years ended december 31 , 2015 and 2014 , respectively , and have been recorded in other income , net in our consolidated statements of income .

total gain ( loss ) recognized in other comprehensive income ( loss ) for fuel hedges ( the effective portion ) was $ 20.7 million , $ ( 2.0 ) million and $ ( 24.2 ) million , for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
we classify cash inflows and outflows from our fuel hedges within operating activities in the unaudited consolidated statements of cash flows .

recycling commodity hedges revenue from the sale of recycled commodities is primarily from sales of old corrugated containers and old newsprint .
from time to time 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 .
during 2016 , we entered into multiple agreements related to the forecasted occ 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 .
the agreements involve combining a purchased put option giving us the right to sell occ at an established floor strike price with a written call option obligating us to deliver occ 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 represents 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 is below the floor , the counterparty will pay us the deficit of the settlement price below the floor times the monthly volumes hedged .

the objective of these agreements is to reduce variability of cash flows for forecasted sales of occ between two designated strike prices.

 |
| table | year | gallons hedged | weighted average contractprice per gallon
---- | -------------- | -----------------------------------------
2017 | 12000000       | $ 2.92
2018 | 3000000        | 2.61 |


| _id | dd4c3e3e2 |
| title |  |
| text | notes to consolidated financial statements gains and losses on financial assets and financial liabilities accounted for at fair value under the fair value option the table below presents the gains and losses recognized as a result of the firm electing to apply the fair value option to certain financial assets and financial liabilities .

these gains and losses are included in 201cmarket making 201d and 201cother principal transactions . 201d the table below also includes gains and losses on the embedded derivative component of hybrid financial instruments included in unsecured short-term borrowings and unsecured long-term borrowings .
these gains and losses would have been recognized under other u.s .
gaap even if the firm had not elected to account for the entire hybrid instrument at fair value .

the amounts in the table exclude contractual interest , which is included in 201cinterest income 201d and 201cinterest expense , 201d for all instruments other than hybrid financial instruments .
see note 23 for further information about interest income and interest expense .
gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december in millions 2012 2011 2010 receivables from customers and counterparties 1 $ 190 $ 97 $ ( 97 ) .

1 .
primarily consists of gains/ ( losses ) on certain reinsurance contracts and certain transfers accounted for as receivables rather than purchases .
2 .
includes gains/ ( losses ) on the embedded derivative component of hybrid financial instruments of $ ( 814 ) million , $ 2.01 billion , and $ ( 1.49 ) billion as of december 2012 , december 2011 and december 2010 , respectively .
3 .

3 .
includes gains/ ( losses ) on the embedded derivative component of hybrid financial instruments of $ ( 887 ) million , $ 1.80 billion and $ ( 1.32 ) billion as of december 2012 , december 2011 and december 2010 , respectively .
4 .
primarily consists of gains/ ( losses ) on certain insurance contracts .
5 .
primarily consists of gains/ ( losses ) on resale and repurchase agreements , securities borrowed and loaned and deposits .

excluding the gains and losses on the instruments accounted for under the fair value option described above , 201cmarket making 201d and 201cother principal transactions 201d primarily represent gains and losses on 201cfinancial instruments owned , at fair value 201d and 201cfinancial instruments sold , but not yet purchased , at fair value . 201d 150 goldman sachs 2012 annual report

 |
| table | in millions                                   | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2012 | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2011 | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2010
--------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
receivables from customers andcounterparties1 | $ 190                                                                                | $ 97                                                                                | $ -97 ( 97 )
other secured financings                      | -190 ( 190 )                                                                                | -63 ( 63 )                                                                                | -227 ( 227 )
unsecured short-term borrowings2              | -973 ( 973 )                                                                                | 2149                                                                                | -1455 ( 1455 )
unsecured long-term borrowings3               | -1523 ( 1523 )                                                                                | 2336                                                                                | -1169 ( 1169 )
other liabilities and accrued expenses4       | -1486 ( 1486 )                                                                                | -911 ( 911 )                                                                                | 50
other5                                        | -81 ( 81 )                                                                                | 90                                                                                | -10 ( 10 )
total                                         | $ -4063 ( 4063 )                                                                                | $ 3698                                                                                | $ -2908 ( 2908 ) |


| _id | dd4b8ff9a |
| title |  |
| text | facility continue to have a maturity date of october 2016 .
in addition , the maturity date of the company's revolving credit facility was extended to october 2018 and the facility was increased to $ 900 million from $ 600 million .
accordingly , the amended credit agreement consists of the term c-2 loan facility , the term c-3 loan facility and a $ 900 million revolving credit facility .
net deferred financing costs are as follows : net deferred financing costs ( in $ millions ) .

____________________________ ( 1 ) relates to the issuance of the 4.625% ( 4.625 % ) notes .
( 2 ) relates to the $ 400 million prepayment of the term c loan facility with proceeds from the 4.625% ( 4.625 % ) notes .
( 3 ) relates to the september 2013 amendment to the celanese us existing senior secured credit facilities to reduce the interest rates payable in connection with certain borrowings thereby creating the term c-2 loan facility due 2016 .

( 4 ) includes $ 6 million related to the issuance of the 3.250% ( 3.250 % ) notes and $ 4 million related to the september 24 , 2014 amendment to the celanese us existing senior secured credit facilities .
( 5 ) includes $ 4 million related to the 6.625% ( 6.625 % ) notes redemption and $ 1 million related to the term c-2 loan facility conversion .

as of december 31 , 2014 , the margin for borrowings under the term c-2 loan facility was 2.0% ( 2.0 % ) above the euro interbank offered rate ( "euribor" ) and the margin for borrowings under the term c-3 loan facility was 2.25% ( 2.25 % ) above libor ( for us dollars ) and 2.25% ( 2.25 % ) above euribor ( for euros ) , as applicable .
as of december 31 , 2014 , the margin for borrowings under the revolving credit facility was 1.5% ( 1.5 % ) above libor .

the margin for borrowings under the revolving credit facility is subject to increase or decrease in certain circumstances based on changes in the corporate credit ratings of celanese or celanese us .
term loan borrowings under the amended credit agreement are subject to amortization at 1% ( 1 % ) of the initial principal amount per annum , payable quarterly .
in addition , the company pays quarterly commitment fees on the unused portion of the revolving credit facility of 0.25% ( 0.25 % ) per annum .

the amended credit agreement is guaranteed by celanese and certain domestic subsidiaries of celanese us and is secured by a lien on substantially all assets of celanese us and such guarantors , subject to certain agreed exceptions ( including for certain real property and certain shares of foreign subsidiaries ) , pursuant to the guarantee and collateral agreement , dated april 2 , as a condition to borrowing funds or requesting letters of credit be issued under the revolving credit facility , the

issued under the revolving credit facility , the company's first lien senior secured leverage ratio ( as calculated as of the last day of the most recent fiscal quarter for which financial statements have been delivered under the revolving facility ) cannot exceed the threshold as specified below .

further , the company's first lien senior secured leverage ratio must be maintained at or below that threshold while any amounts are outstanding under the revolving credit facility.

 |
| table | | net deferred financing costs ( in $ millions )
---------------------------------------------------------- | ----------------------------------------------
as of december 31 2011                                     | 28
financing costs deferred ( 1 )                             | 8
accelerated amortization due to refinancing activity ( 2 ) | -1 ( 1 )
amortization                                               | -5 ( 5 )
as of december 31 2012                                     | 30
financing costs deferred ( 3 )                             | 2
accelerated amortization due to refinancing activity       | 2014
amortization                                               | -5 ( 5 )
as of december 31 2013                                     | 27
financing costs deferred ( 4 )                             | 10
accelerated amortization due to refinancing activity ( 5 ) | -5 ( 5 )
amortization                                               | -5 ( 5 )
as of december 31 2014                                     | 27 |


| _id | dd4c53d0a |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements the company expects the unrecognized tax benefits to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this timeframe , or if the applicable statute of limitations lapses .
the impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $ 10.8 million .

a reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows for the years ended december 31 , ( in thousands ) : .

during the years ended december 31 , 2016 , 2015 and 2014 , the statute of limitations on certain unrecognized tax benefits lapsed and certain positions were effectively settled , which resulted in a decrease of $ 3.2 million , $ 3.5 million and $ 5.3 million , respectively , in the liability for uncertain tax benefits , all of which reduced the income tax provision .

the company recorded penalties and tax-related interest expense to the tax provision of $ 9.2 million , $ 3.2 million and $ 6.5 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .

in addition , due to the expiration of the statute of limitations in certain jurisdictions , the company reduced its liability for penalties and income tax-related interest expense related to uncertain tax positions during the years ended december 31 , 2016 , 2015 and 2014 by $ 3.4 million , $ 3.1 million and $ 9.9 million , respectively .

as of december 31 , 2016 and 2015 , the total amount of accrued income tax-related interest and penalties included in the consolidated balance sheets were $ 24.3 million and $ 20.2 million , respectively .
the company has filed for prior taxable years , and for its taxable year ended december 31 , 2016 will file , numerous consolidated and separate income tax returns , including u.s .
federal and state tax returns and foreign tax returns .
the company is subject to examination in the u.s .

and various state and foreign jurisdictions for certain tax years .
as a result of the company 2019s ability to carryforward federal , state and foreign nols , the applicable tax years generally remain open to examination several years after the applicable loss carryforwards have been used or have expired .
the company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions resulting from these examinations .

the company believes that adequate provisions have been made for income taxes for all periods through december 31 , 2016 .
13 .
stock-based compensation summary of stock-based compensation plans 2014the company maintains equity incentive plans that provide for the grant of stock-based awards to its directors , officers and employees .

the 2007 equity incentive plan ( the 201c2007 plan 201d ) provides for the grant of non-qualified and incentive stock options , as well as restricted stock units , restricted stock and other stock-based awards .
exercise prices in the case of non-qualified and incentive stock options are not less than the fair value of the underlying common stock on the date of grant .
equity awards typically vest ratably , generally over four years for rsus and stock options and three years for psus .

stock options generally expire 10 years from the date of grant .
as of december 31 , 2016 , the company had the ability to grant stock-based awards with respect to an aggregate of 9.5 million shares of common stock under the 2007 plan .

in addition , the company maintains an employee stock purchase plan ( the 201cespp 201d ) pursuant to which eligible employees may purchase shares of the company 2019s common stock on the last day of each bi-annual offering period at a discount of the lower of the closing market value on the first or last day of such offering period .
the offering periods run from june 1 through november 30 and from december 1 through may 31 of each year .

during the years ended december 31 , 2016 , 2015 and 2014 , the company recorded and capitalized the following stock-based compensation expenses ( in thousands ) :

 |
| table | | 2016           | 2015           | 2014
-------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
balance at january 1                                                                   | $ 28114        | $ 31947        | $ 32545
additions based on tax positions related to the current year                           | 82912          | 5042           | 4187
additions for tax positions of prior years                                             | 2014           | 2014           | 3780
foreign currency                                                                       | -307 ( 307 )   | -5371 ( 5371 ) | -3216 ( 3216 )
reduction as a result of the lapse of statute of limitations and effective settlements | -3168 ( 3168 ) | -3504 ( 3504 ) | -5349 ( 5349 )
balance at december 31                                                                 | $ 107551       | $ 28114        | $ 31947 |


| _id | dd4bb6c12 |
| title |  |
| text | sources and uses of cash ( in millions ) in summary , our cash flows for each period were as follows : years ended ( in millions ) dec 29 , dec 30 , dec 31 .

md&a consolidated results and analysis 40

 |
| table | years ended ( in millions )                            | dec 292018       | dec 302017       | dec 312016
------------------------------------------------------ | ---------------- | ---------------- | ----------------
net cash provided by operating activities              | $ 29432          | $ 22110          | $ 21808
net cash used for investing activities                 | -11239 ( 11239 ) | -15762 ( 15762 ) | -25817 ( 25817 )
net cash provided by ( used for ) financing activities | -18607 ( 18607 ) | -8475 ( 8475 )   | -5739 ( 5739 )
net increase ( decrease ) in cash and cash equivalents | $ -414 ( 414 )   | $ -2127 ( 2127 ) | $ -9748 ( 9748 ) |


| _id | dd4c16536 |
| title |  |
| text | performance graph the following graph compares the total return , assuming reinvestment of dividends , on an investment in the company , based on performance of the company's common stock , with the total return of the standard & poor's 500 composite stock index and the dow jones united states travel and leisure index for a five year period by measuring the changes in common stock prices from december 31 , 2012 to december 31 , 2017. .

the stock performance graph assumes for comparison that the value of the company's common stock and of each index was $ 100 on december 31 , 2012 and that all dividends were reinvested .
past performance is not necessarily an indicator of future results.

 |
| table | | 12/12  | 12/13  | 12/14  | 12/15  | 12/16  | 12/17
----------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd . | 100.00 | 142.11 | 251.44 | 313.65 | 260.04 | 385.47
s&p 500                       | 100.00 | 132.39 | 150.51 | 152.59 | 170.84 | 208.14
dow jones us travel & leisure | 100.00 | 145.48 | 169.28 | 179.27 | 192.85 | 238.77 |


| _id | dd4c3fcce |
| title |  |
| text | secured financing is primarily conducted through citi 2019s broker-dealer subsidiaries to facilitate customer matched-book activity and to efficiently fund a portion of the trading inventory .
secured financing appears as a liability on citi 2019s consolidated balance sheet ( 201csecurities loaned or sold under agreements to repurchase 201d ) .
as of december 31 , 2010 , secured financing was $ 189.6 billion and averaged approximately $ 207 billion during the quarter ended december 31 , 2010 .

secured financing at december 31 , 2010 increased by $ 35 billion from $ 154.3 billion at december 31 , 2009 .
during the same period , reverse repos and securities borrowing increased by $ 25 billion .
the majority of secured financing is collateralized by highly liquid government , government-backed and government agency securities .

this collateral comes primarily from citi 2019s trading assets and its secured lending , and is part of citi 2019s client matched-book activity given that citi both borrows and lends similar asset types on a secured basis .
the minority of secured financing is collateralized by less liquid collateral , and supports both citi 2019s trading assets as well as the business of secured lending to customers , which is also part of citi 2019s client matched-book activity .

the less liquid secured borrowing is carefully calibrated by asset quality , tenor and counterparty exposure , including those that might be sensitive to ratings stresses , in order to increase the reliability of the funding .
citi believes there are several potential mitigants available to it in the event of stress on the secured financing markets for less liquid collateral .

citi 2019s significant liquidity resources in its non-bank entities as of december 31 , 2010 , supplemented by collateralized liquidity transfers between entities , provide a cushion .
within the matched-book activity , the secured lending positions , which are carefully managed in terms of collateral and tenor , could be unwound to provide additional liquidity under stress .

citi also has excess funding capacity for less liquid collateral with existing counterparties that can be accessed during potential dislocation .
in addition , citi has the ability to adjust the size of select trading books to provide further mitigation .
at december 31 , 2010 , commercial paper outstanding for citigroup 2019s non- bank entities and bank subsidiaries , respectively , was as follows : in billions of dollars non-bank bank ( 1 ) citigroup .

( 1 ) includes $ 15 billion of commercial paper related to vies consolidated effective january 1 , 2010 with the adoption of sfas 166/167 .
other short-term borrowings of approximately $ 54 billion ( as set forth in the secured financing and short-term borrowings table above ) include $ 42.4 billion of borrowings from banks and other market participants , which includes borrowings from the federal home loan banks .
this represented a decrease of approximately $ 11 billion as compared to year-end 2009 .

the average balance of borrowings from banks and other market participants for the quarter ended december 31 , 2010 was approximately $ 43 billion .
other short-term borrowings also include $ 11.7 billion of broker borrowings at december 31 , 2010 , which averaged approximately $ 13 billion for the quarter ended december 31 , 2010 .

see notes 12 and 19 to the consolidated financial statements for further information on citigroup 2019s and its affiliates 2019 outstanding long-term debt and short-term borrowings .
liquidity transfer between entities liquidity is generally transferable within the non-bank , subject to regulatory restrictions ( if any ) and standard legal terms .
similarly , the non-bank can generally transfer excess liquidity into citi 2019s bank subsidiaries , such as citibank , n.a .

in addition , citigroup 2019s bank subsidiaries , including citibank , n.a. , can lend to the citigroup parent and broker-dealer in accordance with section 23a of the federal reserve act .
as of december 31 , 2010 , the amount available for lending under section 23a was approximately $ 26.6 billion , provided the funds are collateralized appropriately.

 |
| table | in billions of dollars | non-bank | bank   | -1 ( 1 ) | total citigroup
---------------------- | -------- | ------ | -------- | ---------------
commercial paper       | $ 9.7    | $ 15.0 |          | $ 24.7 |


| _id | dd4bbf57e |
| title |  |
| text | item 1a .
risk factors in addition to the other information provided in this report , the following risk factors should be considered when evaluating an investment in our securities .
if the circumstances contemplated by the individual risk factors materialize , our business , financial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly .

risks relating to our business fluctuations in the financial markets could result in investment losses .
prolonged and severe disruptions in the overall public debt and equity markets , such as occurred during 2008 , could result in significant realized and unrealized losses in our investment portfolio .
although financial markets have significantly improved since 2008 , they could deteriorate in the future .

there could also be disruption in individual market sectors , such as occurred in the energy sector in recent years .
such declines in the financial markets could result in significant realized and unrealized losses on investments and could have a material adverse impact on our results of operations , equity , business and insurer financial strength and debt ratings .
our results could be adversely affected by catastrophic events .

we are exposed to unpredictable catastrophic events , including weather-related and other natural catastrophes , as well as acts of terrorism .
any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations .
by way of illustration , during the past five calendar years , pre-tax catastrophe losses , net of reinsurance , were as follows: .

our losses from future catastrophic events could exceed our projections .
we use projections of possible losses from future catastrophic events of varying types and magnitudes as a strategic underwriting tool .
we use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the placement of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area .

these loss projections are approximations , reliant on a mix of quantitative and qualitative processes , and actual losses may exceed the projections by a material amount , resulting in a material adverse effect on our financial condition and results of operations.

 |
| table | calendar year:          | pre-tax catastrophe losses
----------------------- | --------------------------
( dollars in millions ) |
2017                    | $ 1472.6
2016                    | 301.2
2015                    | 53.8
2014                    | 56.3
2013                    | 194.0 |


| _id | dd4be3974 |
| title |  |
| text | kendal vroman , 39 mr .
vroman has served as our managing director , commodity products , otc services & information products since february 2010 .
mr .
vroman previously served as managing director and chief corporate development officer from 2008 to 2010 .
mr .
vroman joined us in 2001 and since then has held positions of increasing responsibility , including most recently as managing director , corporate development and managing director , information and technology services .
scot e .
warren , 47 mr .

scot e .
warren , 47 mr .
warren has served as our managing director , equity index products and index services since february 2010 .
mr .
warren previously served as our managing director , equity products since joining us in 2007 .
prior to that , mr .
warren worked for goldman sachs as its president , manager trading and business analysis team .
prior to goldman sachs , mr .

prior to goldman sachs , mr .
warren managed equity and option execution and clearing businesses for abn amro in chicago and was a senior consultant for arthur andersen & co .
for financial services firms .
financial information about geographic areas due to the nature of its business , cme group does not track revenues based upon geographic location .
we do , however , track trading volume generated outside of traditional u.s .
trading hours and through our international telecommunication hubs .

our customers can directly access our exchanges throughout the world .
the following table shows the percentage of our total trading volume on our globex electronic trading platform generated during non-u.s .
hours and through our international hubs. .

available information our web site is www.cmegroup.com .
information made available on our web site does not constitute part of this document .
we make available on our web site our annual reports on form 10-k , quarterly reports on form 10-q , current reports on form 8-k and amendments to those reports as soon as reasonably practicable after we electronically file or furnish such materials to the sec .

our corporate governance materials , including our corporate governance principles , director conflict of interest policy , board of directors code of ethics , categorical independence standards , employee code of conduct and the charters for all the standing committees of our board , may also be found on our web site .
copies of these materials are also available to shareholders free of charge upon written request to shareholder relations and member services , attention ms .

beth hausoul , cme group inc. , 20 south wacker drive , chicago , illinois 60606.

 |
| table | | 2010         | 2009       | 2008
-------------------------------------- | ------------ | ---------- | ------------
trading during non-u.s . hours         | 13% ( 13 % ) | 9% ( 9 % ) | 11% ( 11 % )
trading through telecommunication hubs | 8            | 7          | 8 |


| _id | dd4c58d46 |
| title |  |
| text | alcoa and its subsidiaries file income tax returns in the u.s .
federal jurisdiction and various states and foreign jurisdictions .
with a few minor exceptions , alcoa is no longer subject to income tax examinations by tax authorities for years prior to 2006 .
all u.s .
tax years prior to 2015 have been audited by the internal revenue service .
various state and foreign jurisdiction tax authorities are in the process of examining alcoa 2019s income tax returns for various tax years through 2014 .

a reconciliation of the beginning and ending amount of unrecognized tax benefits ( excluding interest and penalties ) was as follows: .

for all periods presented , a portion of the balance at end of year pertains to state tax liabilities , which are presented before any offset for federal tax benefits .
the effect of unrecognized tax benefits , if recorded , that would impact the annual effective tax rate for 2015 , 2014 , and 2013 would be approximately 12% ( 12 % ) , 4% ( 4 % ) , and ( 1 ) % (  % ) , respectively , of pretax book income ( loss ) .

alcoa does not anticipate that changes in its unrecognized tax benefits will have a material impact on the statement of consolidated operations during 2016 ( see other matters in note n for a matter for which no reserve has been recognized ) .
it is alcoa 2019s policy to recognize interest and penalties related to income taxes as a component of the provision for income taxes on the accompanying statement of consolidated operations .

in 2015 , 2014 , and 2013 , alcoa recognized $ 8 , $ 1 , and $ 2 , respectively , in interest and penalties .
due to the expiration of the statute of limitations , settlements with tax authorities , and refunded overpayments , alcoa also recognized interest income of $ 2 , $ 5 , and $ 12 in 2015 , 2014 , and 2013 , respectively .
as of december 31 , 2015 and 2014 , the amount accrued for the payment of interest and penalties was $ 9 .
u .

u .
receivables sale of receivables programs alcoa has an arrangement with three financial institutions to sell certain customer receivables without recourse on a revolving basis .
the sale of such receivables is completed through the use of a bankruptcy remote special purpose entity , which is a consolidated subsidiary of alcoa .
this arrangement provides for minimum funding of $ 200 up to a maximum of $ 500 for receivables sold .

on march 30 , 2012 , alcoa initially sold $ 304 of customer receivables in exchange for $ 50 in cash and $ 254 of deferred purchase price under this arrangement .
alcoa has received additional net cash funding of $ 200 for receivables sold ( $ 1258 in draws and $ 1058 in repayments ) since the program 2019s inception ( no draws or repayments occurred in 2015 ) , including $ 40 ( $ 710 in draws and $ 670 in repayments ) in 2014 .

as of december 31 , 2015 and 2014 , the deferred purchase price receivable was $ 249 and $ 356 , respectively , which was included in other receivables on the accompanying consolidated balance sheet .
the deferred purchase price receivable is reduced as collections of the underlying receivables occur ; however , as this is a revolving program , the sale of new receivables will result in an increase in the deferred purchase price receivable .

the net change in the deferred purchase price receivable was reflected in the decrease ( increase ) in receivables line item on the accompanying statement of consolidated cash flows .
this activity is reflected as an operating cash flow because the related customer receivables are the result of an operating activity with an insignificant , short-term interest rate risk.

 |
| table | december 31,                                    | 2015     | 2014       | 2013
----------------------------------------------- | -------- | ---------- | --------
balance at beginning of year                    | $ 35     | $ 63       | $ 66
additions for tax positions of the current year | 2        | 2          | 2
additions for tax positions of prior years      | 15       | 5          | 11
reductions for tax positions of prior years     | -2 ( 2 ) | -4 ( 4 )   | -2 ( 2 )
settlements with tax authorities                | -2 ( 2 ) | -29 ( 29 ) | -8 ( 8 )
expiration of the statute of limitations        | -1 ( 1 ) | -          | -2 ( 2 )
foreign currency translation                    | -4 ( 4 ) | -2 ( 2 )   | -4 ( 4 )
balance at end of year                          | $ 43     | $ 35       | $ 63 |


| _id | dd4be6340 |
| title |  |
| text | the following table sets forth the components of foreign currency translation adjustments for fiscal 2012 , 2011 and 2010 ( in thousands ) : .

stock repurchase program to facilitate our stock repurchase program , designed to return value to our stockholders and minimize dilution from stock issuances , we repurchase shares in the open market and also enter into structured repurchase agreements with third-parties .
authorization to repurchase shares to cover on-going dilution was not subject to expiration .

however , this repurchase program was limited to covering net dilution from stock issuances and was subject to business conditions and cash flow requirements as determined by our board of directors from time to time .
during the third quarter of fiscal 2010 , our board of directors approved an amendment to our stock repurchase program authorized in april 2007 from a non-expiring share-based authority to a time-constrained dollar-based authority .

as part of this amendment , the board of directors granted authority to repurchase up to $ 1.6 billion in common stock through the end of fiscal 2012 .
during the second quarter of fiscal 2012 , we exhausted our $ 1.6 billion authority granted by our board of directors in fiscal in april 2012 , the board of directors approved a new stock repurchase program granting authority to repurchase up to $ 2.0 billion in common stock through the end of fiscal 2015 .

the new stock repurchase program approved by our board of directors is similar to our previous $ 1.6 billion stock repurchase program .
during fiscal 2012 , 2011 and 2010 , we entered into several structured repurchase agreements with large financial institutions , whereupon we provided the financial institutions with prepayments totaling $ 405.0 million , $ 695.0 million and $ 850 million , respectively .

of the $ 405.0 million of prepayments during fiscal 2012 , $ 100.0 million was under the new $ 2.0 billion stock repurchase program and the remaining $ 305.0 million was under our previous $ 1.6 billion authority .
of the $ 850.0 million of prepayments during fiscal 2010 , $ 250.0 million was under the stock repurchase program prior to the program amendment in the third quarter of fiscal 2010 and the remaining $ 600.0 million was under the amended $ 1.6 billion time-constrained dollar-based authority .

we enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the volume weighted average price ( 201cvwap 201d ) of our common stock over a specified period of time .
we only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions .
there were no explicit commissions or fees on these structured repurchases .

under the terms of the agreements , there is no requirement for the financial institutions to return any portion of the prepayment to us .
the financial institutions agree to deliver shares to us at monthly intervals during the contract term .

the parameters used to calculate the number of shares deliverable are : the total notional amount of the contract , the number of trading days in the contract , the number of trading days in the interval and the average vwap of our stock during the interval less the agreed upon discount .
during fiscal 2012 , we repurchased approximately 11.5 million shares at an average price of $ 32.29 through structured repurchase agreements entered into during fiscal 2012 .

during fiscal 2011 , we repurchased approximately 21.8 million shares at an average price of $ 31.81 through structured repurchase agreements entered into during fiscal 2011 .
during fiscal 2010 , we repurchased approximately 31.2 million shares at an average price per share of $ 29.19 through structured repurchase agreements entered into during fiscal 2009 and fiscal 2010 .

for fiscal 2012 , 2011 and 2010 , the prepayments were classified as treasury stock on our consolidated balance sheets at the payment date , though only shares physically delivered to us by november 30 , 2012 , december 2 , 2011 and december 3 , 2010 were excluded from the computation of earnings per share .
as of november 30 , 2012 , $ 33.0 million of prepayments remained under these agreements .
as of december 2 , 2011 and december 3 , 2010 , no prepayments remained under these agreements .

table of contents adobe systems incorporated notes to consolidated financial statements ( continued )

 |
| table | | 2012           | 2011           | 2010
--------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
beginning balance                                                                       | $ 10580        | $ 7632         | $ 10640
foreign currency translation adjustments                                                | -2225 ( 2225 ) | 5156           | -4144 ( 4144 )
income tax effect relating to translation adjustments forundistributed foreign earnings | 1314           | -2208 ( 2208 ) | 1136
ending balance                                                                          | $ 9669         | $ 10580        | $ 7632 |


| _id | dd4c5b532 |
| title |  |
| text | adobe systems incorporated notes to consolidated financial statements ( in thousands , except share and per share data ) ( continued ) note 7 .
restructuring and other charges ( continued ) previously announced restructuring programs the following table depicts the activity for previously announced restructuring programs through december 3 , 1999 : accrued accrued balance at balance at november 27 total cash december 3 1998 charges payments adjustments 1999 .

as of december 3 , 1999 , approximately $ 0.8 million in accrued restructuring costs remain related to the company 2019s fiscal 1998 restructuring program .
this balance is comprised of $ 0.3 million in severance and related charges , $ 0.1 million in lease termination costs , and $ 0.4 million in canceled contracts .
the majority of the accrual is expected to be paid by the first quarter of fiscal 2000 .

cash payments for the twelve months ended december 3 , 1999 related to the fiscal 1998 restructuring were $ 0.7 million , $ 3.6 million , and $ 0.4 million for severance and related charges , lease termination costs , and canceled contracts costs , respectively .
in addition , adjustments related to the fiscal 1998 restructuring were made during the year , which consisted of $ 0.4 million related to estimated lease termination costs and $ 0.3 mil- lion related to other charges .

included in the accrual balance as of november 27 , 1998 were lease termination costs related to previously announced restructuring programs in fiscal 1994 and 1995 .
cash payments for the twelve months ended december 3 , 1999 related to both restructuring programs were $ 1.5 million .
during the third and fourth quarters of fiscal 1999 , the company recorded adjustments to the accrual balance of approximately $ 1.2 million related to these programs .

an adjustment of $ 0.6 million was made in the third quarter of fiscal 1999 due to the company 2019s success in terminating a lease agreement earlier than the contract term specified .
in addition , $ 0.6 million was reduced from the restructuring accrual relating to expired lease termination costs for two facilities resulting from the merger with frame in fiscal 1995 .
as of december 3 , 1999 no accrual balances remain related to the aldus and frame mergers .

other charges during the third and fourth quarters of fiscal 1999 , the company recorded other charges of $ 8.4 million that were unusual in nature .
these charges included $ 2.0 million associated with the cancellation of a contract and $ 2.2 million for accelerated depreciation related to the adjustment of the useful life of certain assets as a result of decisions made by management as part of the restructuring program .

additionally , the company incurred a nonrecurring compensation charge totaling $ 2.6 million for a terminated employee and incurred consulting fees of $ 1.6 million to assist in the restructuring of the company 2019s operations.

 |
| table | | accrued balance at november 27 1998 | total charges | cash payments    | adjustments      | accrued balance at december 3 1999
------------------------------------------ | ----------------------------------- | ------------- | ---------------- | ---------------- | ----------------------------------
accrual related to previous restructurings | $ 8867                              | $ 2014        | $ -6221 ( 6221 ) | $ -1874 ( 1874 ) | $ 772 |


| _id | dd4c3dc30 |
| title |  |
| text | assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease .
amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease .
12 .
accounts payable and other current liabilities dec .
31 , dec .
31 , millions 2010 2009 .

13 .
financial instruments strategy and risk 2013 we may use derivative financial instruments in limited instances for other than trading purposes to assist in managing our overall exposure to fluctuations in interest rates and fuel prices .
we are not a party to leveraged derivatives and , by policy , do not use derivative financial instruments for speculative purposes .

derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged , both at inception and throughout the hedged period .
we formally document the nature and relationships between the hedging instruments and hedged items at inception , as well as our risk- management objectives , strategies for undertaking the various hedge transactions , and method of assessing hedge effectiveness .

changes in the fair market value of derivative financial instruments that do not qualify for hedge accounting are charged to earnings .
we may use swaps , collars , futures , and/or forward contracts to mitigate the risk of adverse movements in interest rates and fuel prices ; however , the use of these derivative financial instruments may limit future benefits from favorable interest rate and fuel price movements .

market and credit risk 2013 we address market risk related to derivative financial instruments by selecting instruments with value fluctuations that highly correlate with the underlying hedged item .
we manage credit risk related to derivative financial instruments , which is minimal , by requiring high credit standards for counterparties and periodic settlements .

at december 31 , 2010 and 2009 , we were not required to provide collateral , nor had we received collateral , relating to our hedging activities .
determination of fair value 2013 we determine the fair values of our derivative financial instrument positions based upon current fair values as quoted by recognized dealers or the present value of expected future cash flows .

interest rate fair value hedges 2013 we manage our overall exposure to fluctuations in interest rates by adjusting the proportion of fixed and floating rate debt instruments within our debt portfolio over a given period .
we generally manage the mix of fixed and floating rate debt through the issuance of targeted amounts of each as debt matures or as we require incremental borrowings .
we employ derivatives , primarily swaps , as one of the tools to obtain the targeted mix .

in addition , we also obtain flexibility in managing interest costs and the interest rate mix within our debt portfolio by evaluating the issuance of and managing outstanding callable fixed-rate debt securities .
swaps allow us to convert debt from fixed rates to variable rates and thereby hedge the risk of changes in the debt 2019s fair value attributable to the changes in interest rates .

we account for swaps as fair value hedges using the short-cut method ; therefore , we do not record any ineffectiveness within our consolidated financial statements.

 |
| table | millions                                            | dec . 31 2010 | dec . 31 2009
--------------------------------------------------- | ------------- | -------------
accounts payable                                    | $ 677         | $ 612
dividends and interest                              | 383           | 347
accrued wages and vacation                          | 357           | 339
income and other taxes                              | 337           | 224
accrued casualty costs                              | 325           | 379
equipment rents payable                             | 86            | 89
other                                               | 548           | 480
total accounts payable and other currentliabilities | $ 2713        | $ 2470 |