| _id | dd498c338 |
| title |  |
| text | sysco corporation a0- a0form a010-k 3 part a0i item a01 a0business we estimate that our sales by type of customer during the past three fiscal years were as follows: .

( 1 ) other includes cafeterias that are not stand-alone restaurants , bakeries , caterers , churches , civic and fraternal organizations , vending distributors , other distributors and international exports .
none of these types of customers , as a group , exceeded 5% ( 5 % ) of total sales in any of the years for which information is presented .

sources of supply we purchase from thousands of suppliers , both domestic and international , none of which individually accounts for more than 10% ( 10 % ) of our purchases .
these suppliers consist generally of large corporations selling brand name and private label merchandise , as well as independent regional brand and private label processors and packers .
we also provide specialty and seasonal products from small to mid-sized producers to meet a growing demand for locally sourced products .

our locally sourced products , including produce , meats , cheese and other products , help differentiate our customers 2019 offerings , satisfy demands for new products , and support local communities .
purchasing is generally carried out through both centrally developed purchasing programs , domestically and internationally , and direct purchasing programs established by our various operating companies .

we administer a consolidated product procurement program designed to develop , obtain and ensure consistent quality food and non-food products .
the program covers the purchasing and marketing of branded merchandise , as well as products from a number of national brand suppliers , encompassing substantially all product lines .

some of our products are purchased internationally within global procurement centers in order to build strategic relationships with international suppliers and to optimize our supply chain network .
sysco 2019s operating companies purchase product from the suppliers participating in these consolidated programs and from other suppliers , although sysco brand products are only available to the operating companies through these consolidated programs .

we also focus on increasing profitability by lowering operating costs and by lowering aggregate inventory levels , which reduces future facility expansion needs at our broadline operating companies , while providing greater value to our suppliers and customers .
working capital practices our growth is funded through a combination of cash flow from operations , commercial paper issuances and long-term borrowings .

see the discussion in item 7 201cmanagement 2019s discussion and analysis of financial condition and results of operations - liquidity and capital resources 201d regarding our liquidity , financial position and sources and uses of funds .
we extend credit terms to our customers that can vary from cash on delivery to 30 days or more based on our assessment of each customer 2019s credit worthiness .
we monitor each customer 2019s account and will suspend shipments if necessary .

a majority of our sales orders are filled within 24 hours of when customer orders are placed .
we generally maintain inventory on hand to be able to meet customer demand .
the level of inventory on hand will vary by product depending on shelf-life , supplier order fulfillment lead times and customer demand .
we also make purchases of additional volumes of certain products based on supply or pricing opportunities .

we take advantage of suppliers 2019 cash discounts where appropriate and otherwise generally receive payment terms from our suppliers ranging from weekly to 45 days or more .
corporate headquarters and shared services center our corporate staff makes available a number of services to our operating companies and our shared services center performs support services for employees , suppliers and customers .

members of these groups possess experience and expertise in , among other areas , customer and vendor contract administration , accounting and finance , treasury , legal , information technology , payroll and employee benefits , risk management and insurance , sales and marketing , merchandising , inbound logistics , human resources , strategy and tax compliance services .

the corporate office also makes available supply chain expertise , such as in warehousing and distribution services , which provide assistance in operational best practices , including space utilization , energy conservation , fleet management and work flow.

 |
| table | type of customer      | 2019           | 2018           | 2017
--------------------- | -------------- | -------------- | --------------
restaurants           | 62% ( 62 % )   | 62% ( 62 % )   | 61% ( 61 % )
education government  | 9              | 8              | 9
travel leisure retail | 9              | 8              | 9
healthcare            | 8              | 9              | 9
other ( 1 )           | 12             | 13             | 12
totals                | 100% ( 100 % ) | 100% ( 100 % ) | 100% ( 100 % ) |


| _id | dd4bf341e |
| title |  |
| text | to the two-class method .
the provisions of this guidance were required for fiscal years beginning after december 15 , 2008 .
the company has adopted this guidance for current period computations of earnings per share , and has updated prior period computations of earnings per share .
the adoption of this guidance in the first quarter of 2009 did not have a material impact on the company 2019s computation of earnings per share .
refer to note 11 for further discussion .

refer to note 11 for further discussion .
in june 2008 , the fasb issued accounting guidance addressing the determination of whether provisions that introduce adjustment features ( including contingent adjustment features ) would prevent treating a derivative contract or an embedded derivative on a company 2019s own stock as indexed solely to the company 2019s stock .
this guidance was effective for fiscal years beginning after december 15 , 2008 .

the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
in march 2008 , the fasb issued accounting guidance intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity 2019s financial position , financial performance , and cash flows .

this guidance was effective for the fiscal years and interim periods beginning after november 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
in december 2007 , the fasb issued replacement guidance that requires the acquirer of a business to recognize and measure the identifiable assets acquired , the liabilities assumed , and any non-controlling interest in the acquired entity at fair value .

this replacement guidance also requires transaction costs related to the business combination to be expensed as incurred .
it was effective for business combinations for which the acquisition date was on or after the start of the fiscal year beginning after december 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .

in december 2007 , the fasb issued accounting guidance that establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary .
this guidance was effective for fiscal years beginning after december 15 , 2008 .
the adoption of this guidance in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .

in september 2006 , the fasb issued accounting guidance which defines fair value , establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value measurements .

this guidance was effective for fiscal years beginning after november 15 , 2007 , however the fasb delayed the effective date to fiscal years beginning after november 15 , 2008 for nonfinancial assets and nonfinancial liabilities , except those items recognized or disclosed at fair value on an annual or more frequent basis .
the adoption of this guidance for nonfinancial assets and liabilities in the first quarter of 2009 did not have any impact on the company 2019s consolidated financial statements .
3 .

3 .
inventories inventories consisted of the following: .

 |
| table | ( in thousands )     | december 31 , 2009 | december 31 , 2008
-------------------- | ------------------ | ------------------
finished goods       | $ 155596           | $ 187072
raw materials        | 785                | 731
work-in-process      | 71                 | 6
subtotal inventories | 156452             | 187809
inventories reserve  | -7964 ( 7964 )     | -5577 ( 5577 )
total inventories    | $ 148488           | $ 182232 |


| _id | dd4b99bf8 |
| 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 ( continued ) ace limited and subsidiaries 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 2009 , 2008 , and 2007 .

the amount of dividends available to be paid in 2010 , without prior approval from the state insurance departments , totals $ 733 million .
the combined statutory capital and surplus and statutory net income of the bermuda and u.s .
subsidiaries as at and for the years ended december 31 , 2009 , 2008 , and 2007 , are as follows: .

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 $ 215 million , $ 211 million , and $ 140 million at december 31 , 2009 , 2008 , and 2007 , 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 .
21 .

21 .
information provided in connection with outstanding debt of subsidiaries the following tables present condensed consolidating financial information at december 31 , 2009 , and december 31 , 2008 , and for the years ended december 31 , 2009 , 2008 , and 2007 , for ace limited ( the parent guarantor ) and its 201csubsidiary issuer 201d , ace ina holdings , inc .
the subsidiary issuer is an indirect 100 percent-owned subsidiary of the parent guarantor .

investments in subsidiaries are accounted for by the parent guarantor under the equity method for purposes of the supplemental consolidating presentation .
earnings of subsidiaries are reflected in the parent guarantor 2019s investment accounts and earnings .
the parent guarantor fully and unconditionally guarantees certain of the debt of the subsidiary issuer.

 |
| table | ( in millions of u.s . dollars ) | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | bermuda subsidiaries 2007 | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | 2007
-------------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------
statutory capital and surplus    | $ 9299                    | $ 6205                    | $ 8579                    | $ 5801                    | $ 5368                    | $ 5321
statutory net income             | $ 2472                    | $ 2196                    | $ 1535                    | $ 870                     | $ 818                     | $ 873 |


| _id | dd4bb885a |
| title |  |
| text | for additional information on segment results see page 43 .
income from equity method investments increased by $ 126 million in 2006 from 2005 and increased by $ 98 million in 2005 from 2004 .
income from our lpg operations in equatorial guinea increased in both periods due to higher sales volumes as a result of the plant expansions completed in 2005 .
the increase in 2005 also included higher ptc income as a result of higher distillate gross margins .

cost of revenues increased $ 4.609 billion in 2006 from 2005 and $ 7.106 billion in 2005 from 2004 .
in both periods the increases were primarily in the rm&t segment and resulted from increases in acquisition costs of crude oil , refinery charge and blend stocks and purchased refined products .
the increase in both periods was also impacted by higher manufacturing expenses , primarily the result of higher contract services and labor costs in 2006 and higher purchased energy costs in 2005 .

purchases related to matching buy/sell transactions decreased $ 6.968 billion in 2006 from 2005 and increased $ 3.314 billion in 2005 from 2004 , mostly in the rm&t segment .
the decrease in 2006 was primarily related to the change in accounting for matching buy/sell transactions discussed above .
the increase in 2005 was primarily due to increased crude oil prices .
depreciation , depletion and amortization increased $ 215 million in 2006 from 2005 and $ 125 million in 2005 from 2004 .

rm&t segment depreciation expense increased in both years as a result of the increase in asset value recorded for our acquisition of the 38 percent interest in mpc on june 30 , 2005 .
in addition , the detroit refinery expansion completed in the fourth quarter of 2005 contributed to the rm&t depreciation expense increase in 2006 .

e&p segment depreciation expense for 2006 included a $ 20 million impairment of capitalized costs related to the camden hills field in the gulf of mexico and the associated canyon express pipeline .
natural gas production from the camden hills field ended in 2006 as a result of increased water production from the well .
selling , general and administrative expenses increased $ 73 million in 2006 from 2005 and $ 134 million in 2005 from 2004 .

the 2006 increase was primarily because personnel and staffing costs increased throughout the year primarily as a result of variable compensation arrangements and increased business activity .
partially offsetting these increases were reductions in stock-based compensation expense .

the increase in 2005 was primarily a result of increased stock-based compensation expense , due to the increase in our stock price during that year as well as an increase in equity-based awards , which was partially offset by a decrease in expense as a result of severance and pension plan curtailment charges and start-up costs related to egholdings in 2004 .
exploration expenses increased $ 148 million in 2006 from 2005 and $ 59 million in 2005 from 2004 .

exploration expense related to dry wells and other write-offs totaled $ 166 million , $ 111 million and $ 47 million in 2006 , 2005 and 2004 .
exploration expense in 2006 also included $ 47 million for exiting the cortland and empire leases in nova scotia .
net interest and other financing costs ( income ) reflected a net $ 37 million of income for 2006 , a favorable change of $ 183 million from the net $ 146 million expense in 2005 .

net interest and other financing costs decreased $ 16 million in 2005 from 2004 .
the favorable changes in 2006 included increased interest income due to higher interest rates and average cash balances , foreign currency exchange gains , adjustments to interest on tax issues and greater capitalized interest .

the decrease in expense for 2005 was primarily a result of increased interest income on higher average cash balances and greater capitalized interest , partially offset by increased interest on potential tax deficiencies and higher foreign exchange losses .
included in net interest and other financing costs ( income ) are foreign currency gains of $ 16 million , losses of $ 17 million and gains of $ 9 million for 2006 , 2005 and 2004 .

minority interest in income of mpc decreased $ 148 million in 2005 from 2004 due to our acquisition of the 38 percent interest in mpc on june 30 , 2005 .
provision for income taxes increased $ 2.308 billion in 2006 from 2005 and $ 979 million in 2005 from 2004 , primarily due to the $ 4.259 billion and $ 2.691 billion increases in income from continuing operations before income taxes .

the increase in our effective income tax rate in 2006 was primarily a result of the income taxes related to our libyan operations , where the statutory income tax rate is in excess of 90 percent .
the following is an analysis of the effective income tax rates for continuing operations for 2006 , 2005 and 2004 .
see note 11 to the consolidated financial statements for further discussion. .

 |
| table | | 2006             | 2005             | 2004
-------------------------------------------------------------- | ---------------- | ---------------- | ----------------
statutory u.s . income tax rate                                | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % )
effects of foreign operations including foreign tax credits    | 9.9              | -0.8 ( 0.8 )     | 0.5
state and local income taxes net of federal income tax effects | 1.9              | 2.5              | 1.6
other tax effects                                              | -2.0 ( 2.0 )     | -0.4 ( 0.4 )     | -0.9 ( 0.9 )
effective income tax rate for continuing operations            | 44.8% ( 44.8 % ) | 36.3% ( 36.3 % ) | 36.2% ( 36.2 % ) |


| _id | dd4bafa8e |
| title |  |
| text | approximately $ 32 million of federal tax payments were deferred and paid in 2009 as a result of the allied acquisition .
the following table summarizes the activity in our gross unrecognized tax benefits for the years ended december 31: .

new accounting guidance for business combinations became effective for our 2009 financial statements .
this new guidance changed the treatment of acquired uncertain tax liabilities .
under previous guidance , changes in acquired uncertain tax liabilities were recognized through goodwill .
under the new guidance , subsequent changes in acquired unrecognized tax liabilities are recognized through the income tax provision .

as of december 31 , 2010 , $ 206.5 million of the $ 222.8 million of unrecognized tax benefits related to tax positions taken by allied prior to the 2008 acquisition .
included in the balance at december 31 , 2010 and 2009 are approximately $ 209.1 million and $ 217.6 million of unrecognized tax benefits ( net of the federal benefit on state issues ) that , if recognized , would affect the effective income tax rate in future periods .

during 2010 , the irs concluded its examination of our 2005 and 2007 tax years .
the conclusion of this examination reduced our gross unrecognized tax benefits by approximately $ 1.9 million .
we also resolved various state matters during 2010 that , in the aggregate , reduced our gross unrecognized tax benefits by approximately $ 10.0 million .

during 2009 , we settled our outstanding tax dispute related to allied 2019s risk management companies ( see 2013 risk management companies ) with both the department of justice ( doj ) and the internal revenue service ( irs ) .
this settlement reduced our gross unrecognized tax benefits by approximately $ 299.6 million .

during 2009 , we also settled with the irs , through an accounting method change , our outstanding tax dispute related to intercompany insurance premiums paid to allied 2019s captive insurance company .
this settlement reduced our gross unrecognized tax benefits by approximately $ 62.6 million .
in addition to these federal matters , we also resolved various state matters that , in the aggregate , reduced our gross unrecognized tax benefits during 2009 by approximately $ 5.8 million .

we recognize interest and penalties as incurred within the provision for income taxes in our consolidated statements of income .
related to the unrecognized tax benefits previously noted , we accrued interest of $ 19.2 million during 2010 and , in total as of december 31 , 2010 , have recognized a liability for penalties of $ 1.2 million and interest of $ 99.9 million .

during 2009 , we accrued interest of $ 24.5 million and , in total at december 31 , 2009 , had recognized a liability for penalties of $ 1.5 million and interest of $ 92.3 million .
during 2008 , we accrued penalties of $ 0.2 million and interest of $ 5.2 million and , in total at december 31 , 2008 , had recognized a liability for penalties of $ 88.1 million and interest of $ 180.0 million .
republic services , inc .
notes to consolidated financial statements , continued

 |
| table | | 2010           | 2009             | 2008
--------------------------------------------------------------------------- | -------------- | ---------------- | ------------
balance at beginning of year                                                | $ 242.2        | $ 611.9          | $ 23.2
additions due to the allied acquisition                                     | -              | 13.3             | 582.9
additions based on tax positions related to current year                    | 2.8            | 3.9              | 10.6
reductions for tax positions related to the current year                    | -              | -                | -5.1 ( 5.1 )
additions for tax positions of prior years                                  | 7.5            | 5.6              | 2.0
reductions for tax positions of prior years                                 | -7.4 ( 7.4 )   | -24.1 ( 24.1 )   | -1.3 ( 1.3 )
reductions for tax positions resulting from lapse of statute of limitations | -10.4 ( 10.4 ) | -0.5 ( 0.5 )     | -0.4 ( 0.4 )
settlements                                                                 | -11.9 ( 11.9 ) | -367.9 ( 367.9 ) | -
balance at end of year                                                      | $ 222.8        | $ 242.2          | $ 611.9 |


| _id | dd4c01f32 |
| title |  |
| text | host hotels & resorts , inc. , host hotels & resorts , l.p. , and subsidiaries notes to consolidated financial statements 1 .
summary of significant accounting policies description of business host hotels & resorts , inc .
operates as a self-managed and self-administered real estate investment trust , or reit , with its operations conducted solely through host hotels & resorts , l.p .

host hotels & resorts , l.p. , a delaware limited partnership , operates through an umbrella partnership structure , with host hotels & resorts , inc. , a maryland corporation , as its sole general partner .
in the notes to the consolidated financial statements , we use the terms 201cwe 201d or 201cour 201d to refer to host hotels & resorts , inc .
and host hotels & resorts , l.p .
together , unless the context indicates otherwise .

we also use the term 201chost inc . 201d to refer specifically to host hotels & resorts , inc .
and the term 201chost l.p . 201d to refer specifically to host hotels & resorts , l.p .
in cases where it is important to distinguish between host inc .
and host l.p .
host inc .
holds approximately 99% ( 99 % ) of host l.p . 2019s partnership interests , or op units .
consolidated portfolio as of december 31 , 2018 , the hotels in our consolidated portfolio are in the following countries: .

basis of presentation and principles of consolidation the accompanying consolidated financial statements include the consolidated accounts of host inc. , host l.p .
and their subsidiaries and controlled affiliates , including joint ventures and partnerships .
we consolidate subsidiaries when we have the ability to control them .

for the majority of our hotel and real estate investments , we consider those control rights to be ( i ) approval or amendment of developments plans , ( ii ) financing decisions , ( iii ) approval or amendments of operating budgets , and ( iv ) investment strategy decisions .
we also evaluate our subsidiaries to determine if they are variable interest entities ( 201cvies 201d ) .
if a subsidiary is a vie , it is subject to the consolidation framework specifically for vies .

typically , the entity that has the power to direct the activities that most significantly impact economic performance consolidates the vie .
we consider an entity to be a vie if equity investors own an interest therein that does not have the characteristics of a controlling financial interest or if such investors do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support .

we review our subsidiaries and affiliates at least annually to determine if ( i ) they should be considered vies , and ( ii ) whether we should change our consolidation determination based on changes in the characteristics thereof .
three partnerships are considered vie 2019s , as the general partner maintains control over the decisions that most significantly impact the partnerships .
the first vie is the operating partnership , host l.p. , which is consolidated by host inc. , of which host inc .

is the general partner and holds 99% ( 99 % ) of the limited partner interests .
host inc . 2019s sole significant asset is its investment in host l.p .
and substantially all of host inc . 2019s assets and liabilities represent assets and liabilities of host l.p .
all of host inc . 2019s debt is an obligation of host l.p .
and may be settled only with assets of host l.p .

and may be settled only with assets of host l.p .
the consolidated partnership that owns the houston airport marriott at george bush intercontinental , of which we are the general partner and hold 85% ( 85 % ) of the partnership interests , also is a vie .
the total assets of this vie at december 31 , 2018 are $ 48 million and consist primarily of cash and

 |
| table | | hotels
------------- | ------
united states | 88
brazil        | 3
canada        | 2
total         | 93 |


| _id | dd4c4db9e |
| title |  |
| text | during the first quarter of fiscal 2010 , the company recorded an additional charge of $ 4.7 million related to this cost reduction action .
approximately $ 3.4 million of the charge related to lease obligation costs for the cambridge wafer fabrication facility , which the company ceased using in the first quarter of fiscal 2010 .
the remaining $ 1.3 million of the charge related to clean-up and closure costs that were expensed as incurred .
6 .

6 .
acquisitions in fiscal 2006 , the company acquired substantially all the outstanding stock of privately-held integrant technologies , inc .
( integrant ) of seoul , korea .
the acquisition enabled the company to enter the mobile tv market and strengthened its presence in the asian region .
the company paid $ 8.4 million related to the purchase of shares from the founder of integrant during the period from july 2007 through july 2009 .
the company recorded these payments as additional goodwill .

in fiscal 2006 , the company acquired all the outstanding stock of privately-held audioasics a/s ( audioasics ) of roskilde , denmark .
the acquisition of audioasics allows the company to continue developing low-power audio solutions , while expanding its presence in the nordic and eastern european regions .

the company paid additional cash payments of $ 3.1 million during fiscal 2009 for the achievement of revenue-based milestones during the period from october 2006 through january 2009 , which were recorded as additional goodwill .
in addition , the company paid $ 3.2 million during fiscal 2009 based on the achievement of technological milestones during the period from october 2006 through january 2009 , which were recorded as compensation expense in fiscal 2008 .

all revenue and technological milestones related to this acquisition have been met and no additional payments will be made .
the company has not provided pro forma results of operations for integrant and audioasics herein as they were not material to the company on either an individual or an aggregate basis .
the company included the results of operations of each acquisition in its consolidated statement of income from the date of such acquisition .
7 .

7 .
deferred compensation plan investments investments in the analog devices , inc .
deferred compensation plan ( the deferred compensation plan ) are classified as trading .
the components of the investments as of october 30 , 2010 and october 31 , 2009 were as follows: .

the fair values of these investments are based on published market quotes on october 30 , 2010 and october 31 , 2009 , respectively .
adjustments to the fair value of , and income pertaining to , deferred compensation plan investments are recorded in operating expenses .
gross realized and unrealized gains and losses from trading securities were not material in fiscal 2010 , 2009 or 2008 .

the company has recorded a corresponding liability for amounts owed to the deferred compensation plan participants ( see note 10 ) .
these investments are specifically designated as available to the company solely for the purpose of paying benefits under the deferred compensation plan .
however , in the event the company became insolvent , the investments would be available to all unsecured general creditors .
8 .

8 .
other investments other investments consist of equity securities and other long-term investments .
investments are stated at fair value , which is based on market quotes or on a cost-basis , dependent on the nature of the investment , as appropriate .
adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease analog devices , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | | 2010   | 2009
--------------------------------------------------------------------- | ------ | ------
money market funds                                                    | $ 1840 | $ 1730
mutual funds                                                          | 6850   | 6213
total deferred compensation plan investments 2014 short and long-term | $ 8690 | $ 7943 |


| _id | dd4b89ac8 |
| title |  |
| text | off-balance sheet transactions contractual obligations as of december 31 , 2017 , our contractual obligations with initial or remaining terms in excess of one year , including interest payments on long-term debt obligations , were as follows ( in thousands ) : the table above does not include $ 0.5 million of unrecognized tax benefits ( we refer you to the notes to the consolidated financial statements note 201410 201cincome tax 201d ) .

certain service providers may require collateral in the normal course of our business .
the amount of collateral may change based on certain terms and conditions .
as a routine part of our business , depending on market conditions , exchange rates , pricing and our strategy for growth , we regularly consider opportunities to enter into contracts for the building of additional ships .
we may also consider the sale of ships , potential acquisitions and strategic alliances .

if any of these transactions were to occur , they may be financed through the incurrence of additional permitted indebtedness , through cash flows from operations , or through the issuance of debt , equity or equity-related securities .

funding sources certain of our debt agreements contain covenants that , among other things , require us to maintain a minimum level of liquidity , as well as limit our net funded debt-to-capital ratio , maintain certain other ratios and restrict our ability to pay dividends .
substantially all of our ships and other property and equipment are pledged as collateral for certain of our debt .
we believe we were in compliance with these covenants as of december 31 , 2017 .

the impact of changes in world economies and especially the global credit markets can create a challenging environment and may reduce future consumer demand for cruises and adversely affect our counterparty credit risks .
in the event this environment deteriorates , our business , financial condition and results of operations could be adversely impacted .

we believe our cash on hand , expected future operating cash inflows , additional available borrowings under our new revolving loan facility and our ability to issue debt securities or additional equity securities , will be sufficient to fund operations , debt payment requirements , capital expenditures and maintain compliance with covenants under our debt agreements over the next twelve-month period .

there is no assurance that cash flows from operations and additional financings will be available in the future to fund our future obligations .

less than 1 year 1-3 years 3-5 years more than 5 years long-term debt ( 1 ) $ 6424582 $ 619373 $ 1248463 $ 3002931 $ 1553815 operating leases ( 2 ) 131791 15204 28973 26504 61110 ship construction contracts ( 3 ) 6138219 1016892 1363215 1141212 2616900 port facilities ( 4 ) 138308 30509 43388 23316 41095 interest ( 5 ) 947967 218150 376566 203099 150152 other ( 6 ) 168678 54800 73653 23870 16355 .

( 1 ) includes discount and premiums aggregating $ 0.5 million .
also includes capital leases .
the amount excludes deferred financing fees which are included in the consolidated balance sheets as an offset to long-term debt .
( 2 ) primarily for offices , motor vehicles and office equipment .
( 3 ) for our newbuild ships based on the euro/u.s .
dollar exchange rate as of december 31 , 2017 .
export credit financing is in place from syndicates of banks .

( 4 ) primarily for our usage of certain port facilities .
( 5 ) includes fixed and variable rates with libor held constant as of december 31 , 2017 .
( 6 ) future commitments for service , maintenance and other business enhancement capital expenditure contracts.

 |
| table | | total      | less than1 year | 1-3 years | 3-5 years | more than5 years
--------------------------------- | ---------- | --------------- | --------- | --------- | ----------------
long-term debt ( 1 )              | $ 6424582  | $ 619373        | $ 1248463 | $ 3002931 | $ 1553815
operating leases ( 2 )            | 131791     | 15204           | 28973     | 26504     | 61110
ship construction contracts ( 3 ) | 6138219    | 1016892         | 1363215   | 1141212   | 2616900
port facilities ( 4 )             | 138308     | 30509           | 43388     | 23316     | 41095
interest ( 5 )                    | 947967     | 218150          | 376566    | 203099    | 150152
other ( 6 )                       | 168678     | 54800           | 73653     | 23870     | 16355
total                             | $ 13949545 | $ 1954928       | $ 3134258 | $ 4420932 | $ 4439427 |


| _id | dd4bdcd7c |
| title |  |
| text | system energy resources , inc .
management 2019s financial discussion and analysis also in addition to the contractual obligations , system energy has $ 382.3 million of unrecognized tax benefits and interest net of unused tax attributes and payments for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions .

see note 3 to the financial statements for additional information regarding unrecognized tax benefits .
in addition to routine spending to maintain operations , the planned capital investment estimate includes specific investments and initiatives such as the nuclear fleet operational excellence initiative , as discussed below in 201cnuclear matters , 201d and plant improvements .
as a wholly-owned subsidiary , system energy dividends its earnings to entergy corporation at a percentage determined monthly .

sources of capital system energy 2019s sources to meet its capital requirements include : 2022 internally generated funds ; 2022 cash on hand ; 2022 debt issuances ; and 2022 bank financing under new or existing facilities .
system energy may refinance , redeem , or otherwise retire debt prior to maturity , to the extent market conditions and interest and dividend rates are favorable .
all debt and common stock issuances by system energy require prior regulatory approval .

debt issuances are also subject to issuance tests set forth in its bond indentures and other agreements .
system energy has sufficient capacity under these tests to meet its foreseeable capital needs .
system energy 2019s receivables from the money pool were as follows as of december 31 for each of the following years. .

see note 4 to the financial statements for a description of the money pool .
the system energy nuclear fuel company variable interest entity has a credit facility in the amount of $ 120 million scheduled to expire in may 2019 .
as of december 31 , 2016 , $ 66.9 million in letters of credit were outstanding under the credit facility to support a like amount of commercial paper issued by the system energy nuclear fuel company variable interest entity .

see note 4 to the financial statements for additional discussion of the variable interest entity credit facility .
system energy obtained authorizations from the ferc through october 2017 for the following : 2022 short-term borrowings not to exceed an aggregate amount of $ 200 million at any time outstanding ; 2022 long-term borrowings and security issuances ; and 2022 long-term borrowings by its nuclear fuel company variable interest entity .

see note 4 to the financial statements for further discussion of system energy 2019s short-term borrowing limits.

 |
| table | 2016             | 2015             | 2014             | 2013
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 33809          | $ 39926          | $ 2373           | $ 9223 |


| _id | dd4b8705c |
| title |  |
| text | ( 1 ) includes shares repurchased through our publicly announced share repurchase program and shares tendered to pay the exercise price and tax withholding on employee stock options .

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

the following graph shows a five-year comparison of cumulative total shareowners 2019 returns for our class b common stock , the s&p 500 index , and the dow jones transportation average .
the comparison of the total cumulative return on investment , which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods , assumes that $ 100 was invested on december 31 , 2004 in the s&p 500 index , the dow jones transportation average , and our class b common stock .

comparison of five year cumulative total return $ 40.00 $ 60.00 $ 80.00 $ 100.00 $ 120.00 $ 140.00 $ 160.00 2004 20092008200720062005 s&p 500 ups dj transport .

 |
| table | | 12/31/04 | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09
-------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
united parcel service inc .      | $ 100.00 | $ 89.49  | $ 91.06  | $ 87.88  | $ 70.48  | $ 75.95
s&p 500 index                    | $ 100.00 | $ 104.91 | $ 121.48 | $ 128.15 | $ 80.74  | $ 102.11
dow jones transportation average | $ 100.00 | $ 111.65 | $ 122.61 | $ 124.35 | $ 97.72  | $ 115.88 |


| _id | dd4bf05de |
| title |  |
| text | the following table illustrates the pro forma effect on net income and earnings per share as if all outstanding and unvested stock options in 2005 were accounted for using estimated fair value .
2005year ended december 31 .

basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period , which excludes unvested shares of restricted stock .

diluted earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period and the shares representing the dilutive effect of stock options and awards and other equity-related financial instruments .
the effect of stock options and restricted stock outstanding is excluded from the calculation of diluted earnings per share in periods in which their effect would be antidilutive .

special purpose entities : we are involved with various legal forms of special purpose entities , or spes , in the normal course of our business .
we use trusts to structure and sell certificated interests in pools of tax-exempt investment-grade assets principally to our mutual fund customers .
these trusts are recorded in our consolidated financial statements .
we transfer assets to these trusts , which are legally isolated from us , from our investment securities portfolio at adjusted book value .

the trusts finance the acquisition of these assets by selling certificated interests issued by the trusts to third-party investors .
the investment securities of the trusts are carried in investments securities available for sale at fair value .
the certificated interests are carried in other short-term borrowings at the amount owed to the third-party investors .

the interest revenue and interest expense generated by the investments and certificated interests , respectively , are recorded in net interest revenue when earned or incurred.

 |
| table | year ended december 31,                                                                                | 2005
----------------------------------------------------------------------------------------------------------------------- | ----------
( in millions except per share amounts )                                                                                |
net income as reported                                                                                | $ 838
add : stock option compensation expense included in reported net income net of related taxes                            | 20
deduct : total stock option compensation expense determined under fair value method for all awards net of related taxes | -27 ( 27 )
pro forma net income                                                                                | $ 831
earnings per share:                                                                                |
basic 2014as reported                                                                                | $ 2.53
basic 2014pro forma                                                                                | 2.51
diluted 2014as reported                                                                                | 2.50
diluted 2014pro forma                                                                                | 2.48 |


| _id | dd4b89ff0 |
| title |  |
| text | entergy corporation and subsidiaries management's financial discussion and analysis refer to 201cselected financial data - five-year comparison of entergy corporation and subsidiaries 201d which accompanies entergy corporation 2019s financial statements in this report for further information with respect to operating statistics .

in november 2007 the board approved a plan to pursue a separation of entergy 2019s non-utility nuclear business from entergy through a spin-off of the business to entergy shareholders .
in april 2010 , entergy announced that it planned to unwind the business infrastructure associated with the proposed spin-off transaction .

as a result of the plan to unwind the business infrastructure , entergy recorded expenses in 2010 for the write-off of certain capitalized costs incurred in connection with the planned spin-off transaction .
these costs are discussed in more detail below and throughout this section .
net revenue utility following is an analysis of the change in net revenue comparing 2010 to 2009 .
amount ( in millions ) .

the volume/weather variance is primarily due to an increase of 8362 gwh , or 8% ( 8 % ) , in billed electricity usage in all retail sectors , including the effect on the residential sector of colder weather in the first quarter 2010 compared to 2009 and warmer weather in the second and third quarters 2010 compared to 2009 .
the industrial sector reflected strong sales growth on continuing signs of economic recovery .

the improvement in this sector was primarily driven by inventory restocking and strong exports with the chemicals , refining , and miscellaneous manufacturing sectors leading the improvement .

the retail electric price variance is primarily due to : increases in the formula rate plan riders at entergy gulf states louisiana effective november 2009 , january 2010 , and september 2010 , at entergy louisiana effective november 2009 , and at entergy mississippi effective july 2009 ; a base rate increase at entergy arkansas effective july 2010 ; rate actions at entergy texas , including base rate increases effective in may and august 2010 ; a formula rate plan provision of $ 16.6 million recorded in

rate plan provision of $ 16.6 million recorded in the third quarter 2009 for refunds that were made to customers in accordance with settlements approved by the lpsc ; and the recovery in 2009 by entergy arkansas of 2008 extraordinary storm costs , as approved by the apsc , which ceased in january 2010 .

the recovery of storm costs is offset in other operation and maintenance expenses .
see note 2 to the financial statements for further discussion of the proceedings referred to above.

 |
| table | | amount ( in millions )
------------------------------------ | ----------------------
2009 net revenue                     | $ 4694
volume/weather                       | 231
retail electric price                | 137
provision for regulatory proceedings | 26
rough production cost equalization   | 19
ano decommissioning trust            | -24 ( 24 )
fuel recovery                        | -44 ( 44 )
other                                | 12
2010 net revenue                     | $ 5051 |


| _id | dd4bf6178 |
| title |  |
| text | 2022 triggering our obligation to make payments under any financial guarantee , letter of credit or other credit support we have provided to or on behalf of such subsidiary ; 2022 causing us to record a loss in the event the lender forecloses on the assets ; and 2022 triggering defaults in our outstanding debt at the parent company .

for example , our senior secured credit facility and outstanding debt securities at the parent company include events of default for certain bankruptcy related events involving material subsidiaries .
in addition , our revolving credit agreement at the parent company includes events of default related to payment defaults and accelerations of outstanding debt of material subsidiaries .
some of our subsidiaries are currently in default with respect to all or a portion of their outstanding indebtedness .

the total non-recourse debt classified as current in the accompanying consolidated balance sheets amounts to $ 2.2 billion .
the portion of current debt related to such defaults was $ 1 billion at december 31 , 2017 , all of which was non-recourse debt related to three subsidiaries 2014 alto maipo , aes puerto rico , and aes ilumina .
see note 10 2014debt in item 8 . 2014financial statements and supplementary data of this form 10-k for additional detail .

none of the subsidiaries that are currently in default are subsidiaries that met the applicable definition of materiality under aes' corporate debt agreements as of december 31 , 2017 in order for such defaults to trigger an event of default or permit acceleration under aes' indebtedness .

however , as a result of additional dispositions of assets , other significant reductions in asset carrying values or other matters in the future that may impact our financial position and results of operations or the financial position of the individual subsidiary , it is possible that one or more of these subsidiaries could fall within the definition of a "material subsidiary" and thereby upon an acceleration trigger an event of default and possible acceleration of the indebtedness under the parent

acceleration of the indebtedness under the parent company's outstanding debt securities .

a material subsidiary is defined in the company's senior secured revolving credit facility as any business that contributed 20% ( 20 % ) or more of the parent company's total cash distributions from businesses for the four most recently completed fiscal quarters .
as of december 31 , 2017 , none of the defaults listed above individually or in the aggregate results in or is at risk of triggering a cross-default under the recourse debt of the company .

contractual obligations and parent company contingent contractual obligations a summary of our contractual obligations , commitments and other liabilities as of december 31 , 2017 is presented below and excludes any businesses classified as discontinued operations or held-for-sale ( in millions ) : contractual obligations total less than 1 year more than 5 years other footnote reference ( 4 ) debt obligations ( 1 ) $ 20404 $ 2250 $ 2431 $ 5003 $ 10720 $ 2014 10 interest payments on long-term debt ( 2 )

2014 10 interest payments on long-term debt ( 2 ) 9103 1172 2166 1719 4046 2014 n/a .

_____________________________ ( 1 ) includes recourse and non-recourse debt presented on the consolidated balance sheet .
these amounts exclude capital lease obligations which are included in the capital lease category .
( 2 ) interest payments are estimated based on final maturity dates of debt securities outstanding at december 31 , 2017 and do not reflect anticipated future refinancing , early redemptions or new debt issuances .

variable rate interest obligations are estimated based on rates as of december 31 , 2017 .
( 3 ) these amounts do not include current liabilities on the consolidated balance sheet except for the current portion of uncertain tax obligations .
noncurrent uncertain tax obligations are reflected in the "other" column of the table above as the company is not able to reasonably estimate the timing of the future payments .

in addition , these amounts do not include : ( 1 ) regulatory liabilities ( see note 9 2014regulatory assets and liabilities ) , ( 2 ) contingencies ( see note 12 2014contingencies ) , ( 3 ) pension and other postretirement employee benefit liabilities ( see note 13 2014benefit plans ) , ( 4 ) derivatives and incentive compensation ( see note 5 2014derivative instruments and hedging activities ) or ( 5 ) any taxes ( see note 20 2014income taxes ) except for uncertain tax obligations , as the company is not

uncertain tax obligations , as the company is not able to reasonably estimate the timing of future payments .

see the indicated notes to the consolidated financial statements included in item 8 of this form 10-k for additional information on the items excluded .
( 4 ) for further information see the note referenced below in item 8 . 2014financial statements and supplementary data of this form 10-k.

 |
| table | contractual obligations                                                                   | total   | less than 1 year | 1-3 years | 3-5 years | more than 5 years | other  | footnote reference ( 4 )
----------------------------------------------------------------------------------------- | ------- | ---------------- | --------- | --------- | ----------------- | ------ | ------------------------
debt obligations ( 1 )                                                                    | $ 20404 | $ 2250           | $ 2431    | $ 5003    | $ 10720           | $ 2014 | 10
interest payments on long-term debt ( 2 )                                                 | 9103    | 1172             | 2166      | 1719      | 4046              | 2014   | n/a
capital lease obligations                                                                 | 18      | 2                | 2         | 2         | 12                | 2014   | 11
operating lease obligations                                                               | 935     | 58               | 116       | 117       | 644               | 2014   | 11
electricity obligations                                                                   | 4501    | 581              | 948       | 907       | 2065              | 2014   | 11
fuel obligations                                                                          | 5859    | 1759             | 1642      | 992       | 1466              | 2014   | 11
other purchase obligations                                                                | 4984    | 1488             | 1401      | 781       | 1314              | 2014   | 11
other long-term liabilities reflected on aes' consolidated balance sheet under gaap ( 3 ) | 701     | 2014             | 284       | 118       | 277               | 22     | n/a
total                                                                                | $ 46505 | $ 7310           | $ 8990    | $ 9639    | $ 20544           | $ 22   | |


| _id | dd4979b84 |
| title |  |
| text | investment advisory revenues earned on the other investment portfolios that we manage decreased $ 44 million , or 8.5% ( 8.5 % ) , to $ 477.8 million in 2009 .
average assets in these portfolios were $ 129.5 billion during 2009 , down $ 12.6 billion or 9% ( 9 % ) from 2008 .
other investment portfolio assets under management increased $ 46.7 billion during 2009 , including $ 36.5 billion in market gains and income and $ 10.2 billion of net inflows , primarily from institutional investors .

net inflows include $ 1.3 billion transferred from the stock and blended asset mutual funds during 2009 .
administrative fees decreased $ 35 million , or 10% ( 10 % ) , to $ 319 million in 2009 .

this change includes a $ 4 million decrease in 12b-1 distribution and service fees recognized on lower average assets under management in the advisor and r classes of our sponsored mutual funds and a $ 31 million reduction in our mutual fund servicing revenue , which is primarily attributable to our cost reduction efforts in the mutual fund and retirement plan servicing functions .

changes in administrative fees are generally offset by similar changes in related operating expenses that are incurred to provide services to the funds and their investors .
our largest expense , compensation and related costs , decreased $ 42 million , or 5% ( 5 % ) , from 2008 to $ 773 million in 2009 .
the largest part of this decrease is attributable to a $ 19 million reduction in our annual bonus program .

reductions in the use of outside contractors lowered 2009 costs $ 14 million with the remainder of the cost savings primarily attributable to the workforce reduction and lower employee benefits and other employment expenses .
average headcount in 2009 was down 5.4% ( 5.4 % ) from 2008 due to attrition , retirements and our workforce reduction in april 2009 .

advertising and promotion expenditures were down $ 31 million , or 30% ( 30 % ) , versus 2008 due to our decision to reduce spending in response to lower investor activity in the 2009 market environment .
depreciation expense and other occupancy and facility costs together increased $ 4 million , or 2.5% ( 2.5 % ) compared to 2008 , as we moderated or delayed our capital spending and facility growth plans .

other operating expenses decreased $ 33 million , or 18% ( 18 % ) from 2008 , including a decline of $ 4 million in distribution and service expenses recognized on lower average assets under management in our advisor and r classes of mutual fund shares that are sourced from financial intermediaries .
our cost control efforts resulted in the remaining expense reductions , including lower professional fees and travel and related costs .

our non-operating investment activity resulted in net losses of $ 12.7 million in 2009 and $ 52.3 million in 2008 .
the improvement of nearly $ 40 million is primarily attributable to a reduction in the other than temporary impairments recognized on our investments in sponsored mutual funds in 2009 versus 2008 .
the following table details our related mutual fund investment gains and losses ( in millions ) during the two years ended december 31 , 2009. .

lower income of $ 16 million from our money market holdings due to the significantly lower interest rate environment offset the improvement experienced with our fund investments .
the 2009 provision for income taxes as a percentage of pretax income is 37.1% ( 37.1 % ) , down from 38.4% ( 38.4 % ) in 2008 .
our 2009 provision includes reductions of prior years 2019 tax provisions and discrete nonrecurring benefits that lowered our 2009 effective tax rate by 1.0% ( 1.0 % ) .

c a p i t a l r e s o u r c e s a n d l i q u i d i t y .
during 2010 , stockholders 2019 equity increased from $ 2.9 billion to $ 3.3 billion .
we repurchased nearly 5.0 million common shares for $ 240.0 million in 2010 .
tangible book value is $ 2.6 billion at december 31 , 2010 , and our cash and cash equivalents and our mutual fund investment holdings total more than $ 1.5 billion .
given the availability of these financial resources , we do not maintain an available external source of liquidity .
t .

t .
rowe price group annual report 2010

 |
| table | | 2008             | 2009             | change
----------------------------------------------- | ---------------- | ---------------- | ------------
other than temporary impairments recognized     | $ -91.3 ( 91.3 ) | $ -36.1 ( 36.1 ) | $ 55.2
capital gain distributions received             | 5.6              | 2.0              | -3.6 ( 3.6 )
net gain ( loss ) realized on fund dispositions | -4.5 ( 4.5 )     | 7.4              | 11.9
net loss recognized on fund holdings            | $ -90.2 ( 90.2 ) | $ -26.7 ( 26.7 ) | $ 63.5 |


| _id | dd4b9b048 |
| title |  |
| text | the aeronautics segment generally includes fewer programs that have much larger sales and operating results than programs included in the other segments .
due to the large number of comparatively smaller programs in the remaining segments , the discussion of the results of operations of those business segments focuses on lines of business within the segment rather than on specific programs .

the following tables of financial information and related discussion of the results of operations of our business segments are consistent with the presentation of segment information in note 5 to the financial statements .
we have a number of programs that are classified by the u.s .
government and cannot be specifically described .

government and cannot be specifically described .
the operating results of these classified programs are included in our consolidated and business segment results , and are subjected to the same oversight and internal controls as our other programs .

aeronautics our aeronautics business segment is engaged in the research , design , development , manufacture , integration , sustainment , support , and upgrade of advanced military aircraft , including combat and air mobility aircraft , unmanned air vehicles , and related technologies .
key combat aircraft programs include the f-35 lightning ii , f-16 fighting falcon , and f-22 raptor fighter aircraft .
key air mobility programs include the c-130j super hercules and the c-5m super galaxy .

aeronautics provides logistics support , sustainment , and upgrade modification services for its aircraft .
aeronautics 2019 operating results included the following : ( in millions ) 2010 2009 2008 .

net sales for aeronautics increased by 8% ( 8 % ) in 2010 compared to 2009 .
sales increased in all three lines of business during the year .
the $ 800 million increase in air mobility primarily was attributable to higher volume on c-130 programs , including deliveries and support activities , as well as higher volume on the c-5 reliability enhancement and re-engining program ( rerp ) .
there were 25 c-130j deliveries in 2010 compared to 16 in 2009 .

the $ 179 million increase in combat aircraft principally was due to higher volume on f-35 production contracts , which partially was offset by lower volume on the f-35 sdd contract and a decline in volume on f-16 , f-22 and other combat aircraft programs .
there were 20 f-16 deliveries in 2010 compared to 31 in 2009 .

the $ 55 million increase in other aeronautics programs mainly was due to higher volume on p-3 and advanced development programs , which partially were offset by a decline in volume on sustainment activities .
net sales for aeronautics increased by 6% ( 6 % ) in 2009 compared to 2008 .
during the year , sales increased in all three lines of business .

the increase of $ 296 million in air mobility 2019s sales primarily was attributable to higher volume on the c-130 programs , including deliveries and support activities .
there were 16 c-130j deliveries in 2009 and 12 in 2008 .
combat aircraft sales increased $ 316 million principally due to higher volume on the f-35 program and increases in f-16 deliveries , which partially were offset by lower volume on f-22 and other combat aircraft programs .

there were 31 f-16 deliveries in 2009 compared to 28 in 2008 .
the $ 116 million increase in other aeronautics programs mainly was due to higher volume on p-3 programs and advanced development programs , which partially were offset by declines in sustainment activities .
operating profit for the segment decreased by 5% ( 5 % ) in 2010 compared to 2009 .
a decline in operating profit in combat aircraft partially was offset by increases in other aeronautics programs and air mobility .

the $ 149 million decrease in combat aircraft 2019s operating profit primarily was due to lower volume and a decrease in the level of favorable performance adjustments on the f-22 program , the f-35 sdd contract and f-16 and other combat aircraft programs in 2010 .
these decreases more than offset increased operating profit resulting from higher volume and improved performance on f-35 production contracts in 2010 .

the $ 35 million increase in other aeronautics programs mainly was attributable to higher volume and improved performance on p-3 and advanced development programs as well as an increase in the level of favorable performance adjustments on sustainment activities in 2010 .

the $ 19 million increase in air mobility operating profit primarily was due to higher volume and improved performance in 2010 on c-130j support activities , which more than offset a decrease in operating profit due to a lower level of favorable performance adjustments on c-130j deliveries in 2010 .
the remaining change in operating profit is attributable to an increase in other income , net between the comparable periods .
aeronautics 2019 2010 operating margins have decreased when compared to 2009 .

the operating margin decrease reflects the life cycles of our significant programs .
specifically , aeronautics is performing more development and initial production work on the f-35 program and is performing less work on more mature programs such as the f-22 and f-16 .
development and initial production contracts yield lower profits than mature full rate programs .

accordingly , while net sales increased in 2010 relative to 2009 , operating profit decreased and consequently operating margins have declined.

 |
| table | ( in millions )     | 2010             | 2009             | 2008
------------------- | ---------------- | ---------------- | ----------------
net sales           | $ 13235          | $ 12201          | $ 11473
operating profit    | 1502             | 1577             | 1433
operating margin    | 11.3% ( 11.3 % ) | 12.9% ( 12.9 % ) | 12.5% ( 12.5 % )
backlog at year-end | 27500            | 26700            | 27200 |


| _id | dd4c60992 |
| title |  |
| text | table of contents cdw corporation and subsidiaries notes to consolidated financial statements which the company realized the benefits of the deductions .
this arrangement has been accounted for as contingent consideration .
pre-2009 business combinations were accounted for under a former accounting standard which , among other aspects , precluded the recognition of certain contingent consideration as of the business combination date .

instead , under the former accounting standard , contingent consideration is accounted for as additional purchase price ( goodwill ) at the time the contingency is resolved .
as of december 31 , 2013 , the company accrued $ 20.9 million related to this arrangement within other current liabilities , as the company realized the tax benefit of the compensation deductions during the 2013 tax year .
the company made the related cash contribution during the first quarter of 2014 .
12 .

12 .
earnings per share the numerator for both basic and diluted earnings per share is net income .
the denominator for basic earnings per share is the weighted-average shares outstanding during the period .
a reconciliation of basic weighted-average shares outstanding to diluted weighted-average shares outstanding is as follows: .

effect of dilutive securities ( 2 ) 1.5 2.2 2.1 diluted weighted-average shares outstanding ( 3 ) 171.8 172.8 158.7 ( 1 ) the 2013 basic weighted-average shares outstanding was impacted by common stock issued during the ipo and the underwriters 2019 exercise in full of the overallotment option granted to them in connection with the ipo .

as the common stock was issued on july 2 , 2013 and july 31 , 2013 , respectively , the shares are only partially reflected in the 2013 basic weighted-average shares outstanding .
such shares are fully reflected in the 2015 and 2014 basic weighted-average shares outstanding .
for additional discussion of the ipo , see note 10 ( stockholders 2019 equity ) .

( 2 ) the dilutive effect of outstanding stock options , restricted stock units , restricted stock , coworker stock purchase plan units and mpk plan units is reflected in the diluted weighted-average shares outstanding using the treasury stock method .

( 3 ) there were 0.4 million potential common shares excluded from the diluted weighted-average shares outstanding for the year ended december 31 , 2015 , and there was an insignificant amount of potential common shares excluded from the diluted weighted-average shares outstanding for the years ended december 31 , 2014 and 2013 , as their inclusion would have had an anti-dilutive effect .
13 .

13 .
coworker retirement and other compensation benefits profit sharing plan and other savings plans the company has a profit sharing plan that includes a salary reduction feature established under the internal revenue code section 401 ( k ) covering substantially all coworkers in the united states .
in addition , coworkers outside the u.s .
participate in other savings plans .

participate in other savings plans .
company contributions to the profit sharing and other savings plans are made in cash and determined at the discretion of the board of directors .
for the years ended december 31 , 2015 , 2014 and 2013 , the amounts expensed for these plans were $ 19.8 million , $ 21.9 million and $ 17.3 million , respectively .

coworker stock purchase plan on january 1 , 2014 , the first offering period under the company 2019s coworker stock purchase plan ( the 201ccspp 201d ) commenced .
the cspp provides the opportunity for eligible coworkers to acquire shares of the company 2019s common stock at a 5% ( 5 % ) discount from the closing market price on the final day of the offering period .
there is no compensation expense associated with the cspp .

restricted debt unit plan on march 10 , 2010 , the company established the restricted debt unit plan ( the 201crdu plan 201d ) , an unfunded nonqualified deferred compensation plan.

 |
| table | ( in millions )                                   | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 ( 1 )
------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------------
basic weighted-average shares outstanding         | 170.3                          | 170.6                          | 156.6
effect of dilutive securities ( 2 )               | 1.5                            | 2.2                            | 2.1
diluted weighted-average shares outstanding ( 3 ) | 171.8                          | 172.8                          | 158.7 |


| _id | dd4c53620 |
| title |  |
| text | some operating leases require payment of property taxes , insurance , and maintenance costs in addition to the rent payments .
contingent and escalation rent in excess of minimum rent payments and sublease income netted in rent expense were insignificant .
noncancelable future lease commitments are : in millions operating leases capital leases .

depreciation on capital leases is recorded as depreciation expense in our results of operations .
as of may 27 , 2018 , we have issued guarantees and comfort letters of $ 540.8 million for the debt and other obligations of consolidated subsidiaries , and guarantees and comfort letters of $ 167.3 million for the debt and other obligations of non-consolidated affiliates , mainly cpw .

in addition , off-balance sheet arrangements are generally limited to the future payments under non-cancelable operating leases , which totaled $ 559.3 million as of may 27 , 2018 .
note 16 .
business segment and geographic information we operate in the packaged foods industry .
on april 24 , 2018 , we acquired blue buffalo , which became our pet operating segment .

in the third quarter of fiscal 2017 , we announced a new global organization structure to streamline our leadership , enhance global scale , and drive improved operational agility to maximize our growth capabilities .
this global reorganization required us to reevaluate our operating segments .

under our new organization structure , our chief operating decision maker assesses performance and makes decisions about resources to be allocated to our operating segments as follows : north america retail ; convenience stores & foodservice ; europe & australia ; asia & latin america ; and pet .

our north america retail operating segment reflects business with a wide variety of grocery stores , mass merchandisers , membership stores , natural food chains , drug , dollar and discount chains , and e-commerce grocery providers .

our product categories in this business segment are ready-to-eat cereals , refrigerated yogurt , soup , meal kits , refrigerated and frozen dough products , dessert and baking mixes , frozen pizza and pizza snacks , grain , fruit and savory snacks , and a wide variety of organic products including refrigerated yogurt , nutrition bars , meal kits , salty snacks , ready-to-eat cereal , and grain snacks .

our major product categories in our convenience stores & foodservice operating segment are ready-to-eat cereals , snacks , refrigerated yogurt , frozen meals , unbaked and fully baked frozen dough products , and baking mixes .
many products we sell are branded to the consumer and nearly all are branded to our customers .
we sell to distributors and operators in many customer channels including foodservice , convenience stores , vending , and supermarket bakeries in the united states .

our europe & australia operating segment reflects retail and foodservice businesses in the greater europe and australia regions .
our product categories include refrigerated yogurt , meal kits , super-premium ice cream , refrigerated and frozen dough products , shelf stable vegetables , grain snacks , and dessert and baking mixes .
we

 |
| table | in millions                                      | operating leases | capital leases
------------------------------------------------ | ---------------- | --------------
fiscal 2019                                      | $ 137.4          | $ 0.3
fiscal 2020                                      | 115.7            | 0.2
fiscal 2021                                      | 92.3             | -
fiscal 2022                                      | 70.9             | -
fiscal 2023                                      | 51.8             | -
after fiscal 2023                                | 91.2             | -
total noncancelable future lease commitments     | $ 559.3          | $ 0.5
less : interest                                  |                  | -0.2 ( 0.2 )
present value of obligations under capitalleases |                  | $ 0.3 |


| _id | dd4bd8ed4 |
| title |  |
| text | we maintain and operate the assets based on contractual obligations within the lease arrangements , which set specific guidelines consistent within the railroad industry .
as such , we have no control over activities that could materially impact the fair value of the leased assets .
we do not hold the power to direct the activities of the vies and , therefore , do not control the ongoing activities that have a significant impact on the economic performance of the vies .

additionally , we do not have the obligation to absorb losses of the vies or the right to receive benefits of the vies that could potentially be significant to the we are not considered to be the primary beneficiary and do not consolidate these vies because our actions and decisions do not have the most significant effect on the vie 2019s performance and our fixed-price purchase options are not considered to be potentially significant to the vies .

the future minimum lease payments associated with the vie leases totaled $ 2.6 billion as of december 31 , 2015 .
17 .
leases we lease certain locomotives , freight cars , and other property .
the consolidated statements of financial position as of december 31 , 2015 and 2014 included $ 2273 million , net of $ 1189 million of accumulated depreciation , and $ 2454 million , net of $ 1210 million of accumulated depreciation , respectively , for properties held under capital leases .

a charge to income resulting from the depreciation for assets held under capital leases is included within depreciation expense in our consolidated statements of income .
future minimum lease payments for operating and capital leases with initial or remaining non-cancelable lease terms in excess of one year as of december 31 , 2015 , were as follows : millions operating leases capital leases .

approximately 95% ( 95 % ) of capital lease payments relate to locomotives .
rent expense for operating leases with terms exceeding one month was $ 590 million in 2015 , $ 593 million in 2014 , and $ 618 million in 2013 .
when cash rental payments are not made on a straight-line basis , we recognize variable rental expense on a straight-line basis over the lease term .
contingent rentals and sub-rentals are not significant .
18 .

18 .
commitments and contingencies asserted and unasserted claims 2013 various claims and lawsuits are pending against us and certain of our subsidiaries .
we cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations , financial condition , or liquidity .
to the extent possible , we have recorded a liability where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated .

we do not expect that any known lawsuits , claims , environmental costs , commitments , contingent liabilities , or guarantees will have a material adverse effect on our consolidated results of operations , financial condition , or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters .

personal injury 2013 the cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year .
we use an actuarial analysis to measure the expense and liability , including unasserted claims .
the federal employers 2019 liability act ( fela ) governs compensation for work-related accidents .
under fela , damages are assessed based on a finding of fault through litigation or out-of-court settlements .

we offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work .
our personal injury liability is not discounted to present value due to the uncertainty surrounding the timing of future payments .
approximately 94% ( 94 % ) of the recorded liability is related to asserted claims and

 |
| table | millions                                | operatingleases | capitalleases
--------------------------------------- | --------------- | -------------
2016                                    | $ 491           | $ 217
2017                                    | 446             | 220
2018                                    | 371             | 198
2019                                    | 339             | 184
2020                                    | 282             | 193
later years                             | 1501            | 575
total minimum lease payments            | $ 3430          | $ 1587
amount representing interest            | n/a             | -319 ( 319 )
present value of minimum lease payments | n/a             | $ 1268 |


| _id | dd4987b58 |
| title |  |
| text | purchase commitments the company has entered into various purchase agreements for minimum amounts of pulpwood processing and energy over periods ranging from one to twenty years at fixed prices .
total purchase commitments are as follows: .

these purchase agreements are not marked to market .
the company purchased $ 37.3 million , $ 29.4 million , and $ 14.5 million during the years ended december 31 , 2009 , 2008 and 2007 , respectively , under these purchase agreements .
litigation pca is a party to various legal actions arising in the ordinary course of business .
these legal actions cover a broad variety of claims spanning our entire business .

as of the date of this filing , the company believes it is not reasonably possible that the resolution of these legal actions will , individually or in the aggregate , have a material adverse effect on its financial position , results of operations , or cash flows .

environmental liabilities the potential costs for various environmental matters are uncertain due to such factors as the unknown magnitude of possible cleanup costs , the complexity and evolving nature of governmental laws and regulations and their interpretations , and the timing , varying costs and effectiveness of alternative cleanup technologies .
from 1994 through 2009 , remediation costs at the company 2019s mills and corrugated plants totaled approximately $ 3.2 million .

as of december 31 , 2009 , the company maintained an environmental reserve of $ 9.1 million relating to on-site landfills ( see note 13 ) and surface impoundments as well as ongoing and anticipated remedial projects .
liabilities recorded for environmental contingencies are estimates of the probable costs based upon available information and assumptions .
because of these uncertainties , pca 2019s estimates may change .

as of the date of this filing , the company believes that it is not reasonably possible that future environmental expenditures and asset retirement obligations above the $ 9.1 million accrued as of december 31 , 2009 , will have a material impact on its financial condition , results of operations , or cash flows .

in connection with the sale to pca of its containerboard and corrugated products business , pactiv agreed to retain all liability for all former facilities and all sites associated with pre-closing off-site waste disposal and all environmental liabilities related to a closed landfill located near the company 2019s filer city mill .
13 .
asset retirement obligations asset retirement obligations consist primarily of landfill capping and closure and post-closure costs .

pca is legally required to perform capping and closure and post-closure care on the landfills at each of the company 2019s mills .
in accordance with asc 410 , 201c asset retirement and environmental obligations , 201d pca recognizes the fair value of these liabilities as an asset retirement obligation for each landfill and capitalizes packaging corporation of america notes to consolidated financial statements ( continued ) december 31 , 2009

 |
| table | | ( in thousands )
---------- | ----------------
2010       | $ 6951
2011       | 5942
2012       | 3659
2013       | 1486
2014       | 1486
thereafter | 25048
total      | $ 44572 |


| _id | dd4c60fc8 |
| title |  |
| text | we have an option to purchase the class a interests for consideration equal to the then current capital account value , plus any unpaid preferred return and the prescribed make-whole amount .
if we purchase these interests , any change in the third-party holder 2019s capital account from its original value will be charged directly to retained earnings and will increase or decrease the net earnings used to calculate eps in that period .

off-balance sheet arrangements and contractual obligations as of may 28 , 2017 , we have issued guarantees and comfort letters of $ 505 million for the debt and other obligations of consolidated subsidiaries , and guarantees and comfort letters of $ 165 million for the debt and other obligations of non-consolidated affiliates , mainly cpw .

in addition , off-balance sheet arrangements are generally limited to the future payments under non-cancelable operating leases , which totaled $ 501 million as of may 28 , 2017 .
as of may 28 , 2017 , we had invested in five variable interest entities ( vies ) .
none of our vies are material to our results of operations , financial condition , or liquidity as of and for the fiscal year ended may 28 , 2017 .

our defined benefit plans in the united states are subject to the requirements of the pension protection act ( ppa ) .
in the future , the ppa may require us to make additional contributions to our domestic plans .
we do not expect to be required to make any contribu- tions in fiscal 2017 .
the following table summarizes our future estimated cash payments under existing contractual obligations , including payments due by period: .

total contractual obligations 12067.3 3112.0 3437.5 1934.1 3583.7 other long-term obligations ( d ) 1372.7 2014 2014 2014 2014 total long-term obligations $ 13440.0 $ 3112.0 $ 3437.5 $ 1934.1 $ 3583.7 ( a ) amounts represent the expected cash payments of our long-term debt and do not include $ 1.2 million for capital leases or $ 44.4 million for net unamortized debt issuance costs , premiums and discounts , and fair value adjustments .

( b ) operating leases represents the minimum rental commitments under non-cancelable operating leases .
( c ) the majority of the purchase obligations represent commitments for raw material and packaging to be utilized in the normal course of business and for consumer marketing spending commitments that support our brands .

for purposes of this table , arrangements are considered purchase obliga- tions if a contract specifies all significant terms , including fixed or minimum quantities to be purchased , a pricing structure , and approximate timing of the transaction .
most arrangements are cancelable without a significant penalty and with short notice ( usually 30 days ) .
any amounts reflected on the consolidated balance sheets as accounts payable and accrued liabilities are excluded from the table above .

( d ) the fair value of our foreign exchange , equity , commodity , and grain derivative contracts with a payable position to the counterparty was $ 24 million as of may 28 , 2017 , based on fair market values as of that date .
future changes in market values will impact the amount of cash ultimately paid or received to settle those instruments in the future .

other long-term obligations mainly consist of liabilities for accrued compensation and bene- fits , including the underfunded status of certain of our defined benefit pen- sion , other postretirement benefit , and postemployment benefit plans , and miscellaneous liabilities .
we expect to pay $ 21 million of benefits from our unfunded postemployment benefit plans and $ 14.6 million of deferred com- pensation in fiscal 2018 .

we are unable to reliably estimate the amount of these payments beyond fiscal 2018 .
as of may 28 , 2017 , our total liability for uncertain tax positions and accrued interest and penalties was $ 158.6 million .
significant accounting estimates for a complete description of our significant account- ing policies , see note 2 to the consolidated financial statements on page 51 of this report .

our significant accounting estimates are those that have a meaning- ful impact on the reporting of our financial condition and results of operations .
these estimates include our accounting for promotional expenditures , valuation of long-lived assets , intangible assets , redeemable interest , stock-based compensation , income taxes , and defined benefit pension , other postretirement benefit , and pos- temployment benefit plans .

promotional expenditures our promotional activi- ties are conducted through our customers and directly or indirectly with end consumers .
these activities include : payments to customers to perform merchan- dising activities on our behalf , such as advertising or in-store displays ; discounts to our list prices to lower retail shelf prices ; payments to gain distribution of new products ; coupons , contests , and other incentives ; and media and advertising expenditures .

the recognition of these costs requires estimation of customer participa- tion and performance levels .
these estimates are based annual report 29

 |
| table | in millions                       | payments due by fiscal year total | payments due by fiscal year 2018 | payments due by fiscal year 2019 -20 | payments due by fiscal year 2021 -22 | payments due by fiscal year 2023 and thereafter
--------------------------------- | --------------------------------- | -------------------------------- | ------------------------------------ | ------------------------------------ | -----------------------------------------------
long-term debt ( a )              | $ 8290.6                          | 604.2                            | 2647.7                               | 1559.3                               | 3479.4
accrued interest                  | 83.8                              | 83.8                             | 2014                                 | 2014                                 | 2014
operating leases ( b )            | 500.7                             | 118.8                            | 182.4                                | 110.4                                | 89.1
capital leases                    | 1.2                               | 0.4                              | 0.6                                  | 0.1                                  | 0.1
purchase obligations ( c )        | 3191.0                            | 2304.8                           | 606.8                                | 264.3                                | 15.1
total contractual obligations     | 12067.3                           | 3112.0                           | 3437.5                               | 1934.1                               | 3583.7
other long-term obligations ( d ) | 1372.7                            | 2014                             | 2014                                 | 2014                                 | 2014
total long-term obligations       | $ 13440.0                         | $ 3112.0                         | $ 3437.5                             | $ 1934.1                             | $ 3583.7 |


| _id | dd4bf6268 |
| title |  |
| text | ventas , inc .

notes to consolidated financial statements 2014 ( continued ) if we experience certain kinds of changes of control , the issuers must make an offer to repurchase the senior notes , in whole or in part , at a purchase price in cash equal to 101% ( 101 % ) of the principal amount of the senior notes , plus any accrued and unpaid interest to the date of purchase ; provided , however , that in the event moody 2019s and s&p have confirmed their ratings at ba3 or higher and bb- or higher on the senior notes and

higher and bb- or higher on the senior notes and certain other conditions are met , this repurchase obligation will not apply .

mortgages at december 31 , 2006 , we had outstanding 53 mortgage loans that we assumed in connection with various acquisitions .
outstanding principal balances on these loans ranged from $ 0.4 million to $ 114.4 million as of december 31 , 2006 .

the loans bear interest at fixed rates ranging from 5.6% ( 5.6 % ) to 8.5% ( 8.5 % ) per annum , except with respect to eight loans with outstanding principal balances ranging from $ 0.4 million to $ 114.4 million , which bear interest at the lender 2019s variable rates , ranging from 3.6% ( 3.6 % ) to 8.5% ( 8.5 % ) per annum at of december 31 , 2006 .

the fixed rate debt bears interest at a weighted average annual rate of 7.06% ( 7.06 % ) and the variable rate debt bears interest at a weighted average annual rate of 5.61% ( 5.61 % ) as of december 31 , 2006 .
the loans had a weighted average maturity of eight years as of december 31 , 2006 .
the $ 114.4 variable mortgage debt was repaid in january 2007 .

scheduled maturities of borrowing arrangements and other provisions as of december 31 , 2006 , our indebtedness has the following maturities ( in thousands ) : .

certain provisions of our long-term debt contain covenants that limit our ability and the ability of certain of our subsidiaries to , among other things : ( i ) incur debt ; ( ii ) make certain dividends , distributions and investments ; ( iii ) enter into certain transactions ; ( iv ) merge , consolidate or transfer certain assets ; and ( v ) sell assets .

we and certain of our subsidiaries are also required to maintain total unencumbered assets of at least 150% ( 150 % ) of this group 2019s unsecured debt .
derivatives and hedging in the normal course of business , we are exposed to the effect of interest rate changes .
we limit these risks by following established risk management policies and procedures including the use of derivatives .

for interest rate exposures , derivatives are used primarily to fix the rate on debt based on floating-rate indices and to manage the cost of borrowing obligations .
we currently have an interest rate swap to manage interest rate risk ( the 201cswap 201d ) .
we prohibit the use of derivative instruments for trading or speculative purposes .
further , we have a policy of only entering into contracts with major financial institutions based upon their credit ratings and other factors .

when viewed in conjunction with the underlying and offsetting exposure that the derivative is designed to hedge , we do not anticipate any material adverse effect on our net income or financial position in the future from the use of derivatives.

 |
| table | 2007                                           | $ 130206
---------------------------------------------- | --------------
2008                                           | 33117
2009                                           | 372725
2010                                           | 265915
2011                                           | 273761
thereafter                                     | 1261265
total maturities                               | 2336989
less unamortized commission fees and discounts | -7936 ( 7936 )
senior notes payable and other debt            | $ 2329053 |


| _id | dd4bf06ba |
| title |  |
| text | other long term debt in december 2012 , the company entered into a $ 50.0 million recourse loan collateralized by the land , buildings and tenant improvements comprising the company 2019s corporate headquarters .
the loan has a seven year term and maturity date of december 2019 .
the loan bears interest at one month libor plus a margin of 1.50% ( 1.50 % ) , and allows for prepayment without penalty .

the loan includes covenants and events of default substantially consistent with the company 2019s credit agreement discussed above .
the loan also requires prior approval of the lender for certain matters related to the property , including transfers of any interest in the property .
as of december 31 , 2017 and 2016 , the outstanding balance on the loan was $ 40.0 million and $ 42.0 million , respectively .

the weighted average interest rate on the loan was 2.5% ( 2.5 % ) and 2.0% ( 2.0 % ) for the years ended december 31 , 2017 and 2016 , respectively .
the following are the scheduled maturities of long term debt as of december 31 , 2017 : ( in thousands ) .

interest expense , net was $ 34.5 million , $ 26.4 million , and $ 14.6 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
interest expense includes the amortization of deferred financing costs , bank fees , capital and built-to-suit lease interest and interest expense under the credit and other long term debt facilities .

amortization of deferred financing costs was $ 1.3 million , $ 1.2 million , and $ 0.8 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
the company monitors the financial health and stability of its lenders under the credit and other long term debt facilities , however during any period of significant instability in the credit markets lenders could be negatively impacted in their ability to perform under these facilities .
7 .

7 .
commitments and contingencies obligations under operating leases the company leases warehouse space , office facilities , space for its brand and factory house stores and certain equipment under non-cancelable operating leases .
the leases expire at various dates through 2033 , excluding extensions at the company 2019s option , and include provisions for rental adjustments .

the table below includes executed lease agreements for brand and factory house stores that the company did not yet occupy as of december 31 , 2017 and does not include contingent rent the company may incur at its stores based on future sales above a specified minimum or payments made for maintenance , insurance and real estate taxes .
the following is a schedule of future minimum lease payments for non-cancelable real property operating leases as of december 31 , 2017 as well as

 |
| table | 2018                                         | $ 27000
-------------------------------------------- | --------
2019                                         | 63000
2020                                         | 25000
2021                                         | 86250
2022                                         | 2014
2023 and thereafter                          | 600000
total scheduled maturities of long term debt | $ 801250
current maturities of long term debt         | $ 27000 |