| _id | dd4c2add8 |
| title |  |
| text | unit shipments increased 49% ( 49 % ) to 217.4 million units in 2006 , compared to 146.0 million units in 2005 .
the overall increase was driven by increased unit shipments of products for gsm , cdma and 3g technologies , partially offset by decreased unit shipments of products for iden technology .
for the full year 2006 , unit shipments by the segment increased in all regions .

due to the segment 2019s increase in unit shipments outpacing overall growth in the worldwide handset market , which grew approximately 20% ( 20 % ) in 2006 , the segment believes that it expanded its global handset market share to an estimated 22% ( 22 % ) for the full year 2006 .
in 2006 , asp decreased approximately 11% ( 11 % ) compared to 2005 .
the overall decrease in asp was driven primarily by changes in the geographic and product-tier mix of sales .

by comparison , asp decreased approximately 10% ( 10 % ) in 2005 and increased approximately 15% ( 15 % ) in 2004 .
asp is impacted by numerous factors , including product mix , market conditions and competitive product offerings , and asp trends often vary over time .
in 2006 , the largest of the segment 2019s end customers ( including sales through distributors ) were china mobile , verizon , sprint nextel , cingular , and t-mobile .

these five largest customers accounted for approximately 39% ( 39 % ) of the segment 2019s net sales in 2006 .
besides selling directly to carriers and operators , the segment also sold products through a variety of third-party distributors and retailers , which accounted for approximately 38% ( 38 % ) of the segment 2019s net sales .
the largest of these distributors was brightstar corporation .
although the u.s .

although the u.s .
market continued to be the segment 2019s largest individual market , many of our customers , and more than 65% ( 65 % ) of the segment 2019s 2006 net sales , were outside the u.s .
the largest of these international markets were china , brazil , the united kingdom and mexico .

home and networks mobility segment the home and networks mobility segment designs , manufactures , sells , installs and services : ( i ) digital video , internet protocol ( 201cip 201d ) video and broadcast network interactive set-tops ( 201cdigital entertainment devices 201d ) , end-to- end video delivery solutions , broadband access infrastructure systems , and associated data and voice customer premise equipment ( 201cbroadband gateways 201d ) to cable television and telecom service providers (

cable television and telecom service providers ( collectively , referred to as the 201chome business 201d ) , and ( ii ) wireless access systems ( 201cwireless networks 201d ) , including cellular infrastructure systems and wireless broadband systems , to wireless service providers .

in 2007 , the segment 2019s net sales represented 27% ( 27 % ) of the company 2019s consolidated net sales , compared to 21% ( 21 % ) in 2006 and 26% ( 26 % ) in 2005 .
( dollars in millions ) 2007 2006 2005 2007 20142006 2006 20142005 years ended december 31 percent change .

segment results 20142007 compared to 2006 in 2007 , the segment 2019s net sales increased 9% ( 9 % ) to $ 10.0 billion , compared to $ 9.2 billion in 2006 .
the 9% ( 9 % ) increase in net sales reflects a 27% ( 27 % ) increase in net sales in the home business , partially offset by a 1% ( 1 % ) decrease in net sales of wireless networks .

net sales of digital entertainment devices increased approximately 43% ( 43 % ) , reflecting increased demand for digital set-tops , including hd/dvr set-tops and ip set-tops , partially offset by a decline in asp due to a product mix shift towards all-digital set-tops .
unit shipments of digital entertainment devices increased 51% ( 51 % ) to 15.2 million units .

net sales of broadband gateways increased approximately 6% ( 6 % ) , primarily due to higher net sales of data modems , driven by net sales from the netopia business acquired in february 2007 .
net sales of wireless networks decreased 1% ( 1 % ) , primarily driven by lower net sales of iden and cdma infrastructure equipment , partially offset by higher net sales of gsm infrastructure equipment , despite competitive pricing pressure .

on a geographic basis , the 9% ( 9 % ) increase in net sales reflects higher net sales in all geographic regions .
the increase in net sales in north america was driven primarily by higher sales of digital entertainment devices , partially offset by lower net sales of iden and cdma infrastructure equipment .
the increase in net sales in asia was primarily due to higher net sales of gsm infrastructure equipment , partially offset by lower net sales of cdma infrastructure equipment .

the increase in net sales in emea was , primarily due to higher net sales of gsm infrastructure equipment , partially offset by lower demand for iden and cdma infrastructure equipment .
net sales in north america continue to comprise a significant portion of the segment 2019s business , accounting for 52% ( 52 % ) of the segment 2019s total net sales in 2007 , compared to 56% ( 56 % ) of the segment 2019s total net sales in 2006 .

60 management 2019s discussion and analysis of financial condition and results of operations

 |
| table | ( dollars in millions ) | years ended december 31 2007 | years ended december 31 2006 | years ended december 31 2005 | years ended december 31 2007 20142006 | 2006 20142005
----------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | ---------------
segment net sales       | $ 10014                      | $ 9164                       | $ 9037                       | 9% ( 9 % )                            | 1% ( 1 % )
operating earnings      | 709                          | 787                          | 1232                         | ( 10 ) % (  % )                       | ( 36 ) % (  % ) |


| _id | dd4beeb30 |
| title |  |
| text | synopsys , inc .
notes to consolidated financial statements 2014 ( continued ) and other electronic applications markets .
the company believes the acquisition will expand its technology portfolio , channel reach and total addressable market by adding complementary products and expertise for fpga solutions and rapid asic prototyping .
purchase price .
synopsys paid $ 8.00 per share for all outstanding shares including certain vested options of synplicity for an aggregate cash payment of $ 223.3 million .

additionally , synopsys assumed certain employee stock options and restricted stock units , collectively called 201cstock awards . 201d the total purchase consideration consisted of: .

acquisition related costs consist primarily of professional services , severance and employee related costs and facilities closure costs of which $ 6.8 million have been paid as of october 31 , 2009 .
fair value of stock awards assumed .
an aggregate of 4.7 million shares of synplicity stock options and restricted stock units were exchanged for synopsys stock options and restricted stock units at an exchange ratio of 0.3392 per share .

the fair value of stock options assumed was determined using a black-scholes valuation model .
the fair value of stock awards vested or earned of $ 4.2 million was included as part of the purchase price .
the fair value of unvested awards of $ 5.0 million will be recorded as operating expense over the remaining service periods on a straight-line basis .
purchase price allocation .

purchase price allocation .
the company allocated $ 80.0 million of the purchase price to identifiable intangible assets to be amortized over two to seven years .
in-process research and development expense related to these acquisitions was $ 4.8 million .
goodwill , representing the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired , was $ 120.3 million and will not be amortized .

goodwill primarily resulted from the company 2019s expectation of cost synergies and sales growth from the integration of synplicity 2019s technology with the company 2019s technology and operations to provide an expansion of products and market reach .
fiscal 2007 acquisitions during fiscal year 2007 , the company completed certain purchase acquisitions for cash .

the company allocated the total purchase considerations of $ 54.8 million ( which included acquisition related costs of $ 1.4 million ) to the assets and liabilities acquired , including identifiable intangible assets , based on their respective fair values at the acquisition dates , resulting in aggregate goodwill of $ 36.6 million .
acquired identifiable intangible assets of $ 14.3 million are being amortized over two to nine years .

in-process research and development expense related to these acquisitions was $ 3.2 million.

 |
| table | | ( in thousands )
--------------------------------------------------- | ----------------
cash paid net of cash acquired                      | $ 180618
fair value of assumed vested or earned stock awards | 4169
acquisition related costs                           | 8016
total purchase price consideration                  | $ 192803 |


| _id | dd4bc1f68 |
| title |  |
| text | entergy corporation and subsidiaries management 2019s financial discussion and analysis the volume/weather variance is primarily due to an increase of 1402 gwh , or 1% ( 1 % ) , in billed electricity usage , including an increase in industrial usage and the effect of more favorable weather .

the increase in industrial sales was primarily due to expansion in the chemicals industry and the addition of new customers , partially offset by decreased demand primarily due to extended maintenance outages for existing chemicals customers .
the waterford 3 replacement steam generator provision is due to a regulatory charge of approximately $ 32 million recorded in 2015 related to the uncertainty associated with the resolution of the waterford 3 replacement steam generator project .

see note 2 to the financial statements for a discussion of the waterford 3 replacement steam generator prudence review proceeding .
the miso deferral variance is primarily due to the deferral in 2014 of non-fuel miso-related charges , as approved by the lpsc and the mpsc .
the deferral of non-fuel miso-related charges is partially offset in other operation and maintenance expenses .
see note 2 to the financial statements for further discussion of the recovery of non-fuel miso-related charges .

the louisiana business combination customer credits variance is due to a regulatory liability of $ 107 million recorded by entergy in october 2015 as a result of the entergy gulf states louisiana and entergy louisiana business combination .

consistent with the terms of the stipulated settlement in the business combination proceeding , electric customers of entergy louisiana will realize customer credits associated with the business combination ; accordingly , in october 2015 , entergy recorded a regulatory liability of $ 107 million ( $ 66 million net-of-tax ) .
see note 2 to the financial statements for further discussion of the business combination and customer credits .

entergy wholesale commodities following is an analysis of the change in net revenue comparing 2015 to 2014 .
amount ( in millions ) .

as shown in the table above , net revenue for entergy wholesale commodities decreased by approximately $ 558 million in 2016 primarily due to : 2022 lower realized wholesale energy prices , primarily due to significantly higher northeast market power prices in 2014 , and lower capacity prices in 2015 ; and 2022 a decrease in net revenue as a result of vermont yankee ceasing power production in december 2014 .

the decrease was partially offset by higher volume in the entergy wholesale commodities nuclear fleet , excluding vermont yankee , resulting from fewer refueling outage days in 2015 as compared to 2014 , partially offset by more unplanned outage days in 2015 as compared to 2014.

 |
| table | | amount ( in millions )
---------------------------------------------- | ----------------------
2014 net revenue                               | $ 2224
nuclear realized price changes                 | -310 ( 310 )
vermont yankee shutdown in december 2014       | -305 ( 305 )
nuclear volume excluding vermont yankee effect | 20
other                                          | 37
2015 net revenue                               | $ 1666 |


| _id | dd4c4f930 |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) 12 .

impairments , net loss on sale of long-lived assets , restructuring and merger related expense the significant components reflected in impairments , net loss on sale of long-lived assets , restructuring and merger related expense in the accompanying consolidated statements of operations include the following : impairments and net loss on sale of long-lived assets 2014during the years ended december 31 , 2005 , 2004 and 2003 , the company recorded impairments and net loss on sale of long-lived assets (

and net loss on sale of long-lived assets ( primarily related to its rental and management segment ) of $ 19.1 million , $ 22.3 million and $ 28.3 million , respectively .

2022 non-core asset impairment charges 2014during the years ended december 31 , 2005 and 2004 respectively , the company sold a limited number of non-core towers and other non-core assets and recorded impairment charges to write-down these and other non-core assets to net realizable value .

during the year ended december 31 , 2003 , the company sold approximately 300 non-core towers and certain other non-core assets and recorded impairment charges to write-down these and other non-core assets to net realizable value .
as a result , the company recorded impairment charges and net losses of approximately $ 16.8 million , $ 17.7 million and $ 19.1 million for the years ended december 31 , 2005 , 2004 and 2003 , respectively .

2022 construction-in-progress impairment charges 2014for the year ended december 31 , 2005 , 2004 and 2003 , the company wrote-off approximately $ 2.3 million , $ 4.6 million and $ 9.2 million , respectively , of construction-in-progress costs , primarily associated with sites that it no longer planned to build .
restructuring expense 2014during the year ended december 31 , 2005 , the company made cash payments against its previous accrued restructuring liability in the amount of $ 0.8 million .

during the year ended december 31 , 2004 , the company incurred employee separation costs of $ 0.8 million and decreased its lease terminations and other facility closing costs liability by $ 0.1 million .
during the year ended december 31 , 2003 , the company incurred employee separation costs primarily associated with a reorganization of certain functions within its rental and management segment and increased its accrued restructuring liability by $ 2.3 million .

such charges are reflected in impairments , net loss on sale of long-lived assets , restructuring and merger related expense in the accompanying consolidated statement of operations for the years ended december 31 , 2004 and 2003 .
the following table displays activity with respect to the accrued restructuring liability for the years ended december 31 , 2003 , 2004 and 2005 ( in thousands ) .

the accrued restructuring liability is reflected in accounts payable and accrued expenses in the accompanying consolidated balance sheets as of december 31 , 2005 and liability january 1 , restructuring expense payments liability as december 31 , restructuring expense payments liability december 31 , restructuring expense payments liability december 31 .

there were no material changes in estimates related to this accrued restructuring liability during the year ended december 31 , 2005 .
the company expects to pay the balance of these employee separation liabilities prior to the end of 2006 .
additionally , the company continues to negotiate certain lease terminations associated with this restructuring liability .

merger related expense 2014during the year ended december 31 , 2005 , the company assumed certain obligations , as a result of the merger with spectrasite , inc. , primarily related to employee separation costs of former

 |
| table | | liability as of january 1 2003 | 2003 restructuring expense | 2003 cash payments | liability as of december 31 2003 | 2004 restructuring expense | 2004 cash payments | liability as of december 31 2004 | 2005 restructuring expense | 2005 cash payments | liability as of december 31 2005
--------------------------------------------------- | ------------------------------ | -------------------------- | ------------------ | -------------------------------- | -------------------------- | ------------------ | -------------------------------- | -------------------------- | ------------------ | --------------------------------
employee separations                                | $ 1639                         | $ 1919                     | $ -1319 ( 1319 )   | $ 2239                           | $ 823                      | $ -2397 ( 2397 )   | $ 665                            | $ 84                       | $ -448 ( 448 )     | $ 301
lease terminations and other facility closing costs | 1993                           | 347                        | -890 ( 890 )       | 1450                             | -131 ( 131 )               | -888 ( 888 )       | 431                              | 12                         | -325 ( 325 )       | 118
total                                               | $ 3632                         | $ 2266                     | $ -2209 ( 2209 )   | $ 3689                           | $ 692                      | $ -3285 ( 3285 )   | $ 1096                           | $ 96                       | $ -773 ( 773 )     | $ 419 |


| _id | dd4b9dd0c |
| title |  |
| text | air mobility sales declined by $ 535 million primarily due to c-130j deliveries ( 12 in 2006 compared to 15 in 2005 ) and lower volume on the c-5 program .
combat aircraft sales increased by $ 292 million mainly due to higher f-35 and f-22 volume , partially offset by reduced volume on f-16 programs .
other aeronautics programs sales increased by $ 83 million primarily due to higher volume in sustainment services activities .
operating profit for the segment increased 21% ( 21 % ) in 2007 compared to 2006 .

operating profit increases in combat aircraft more than offset decreases in other aeronautics programs and air mobility .
combat aircraft operating profit increased $ 326 million mainly due to improved performance on f-22 and f-16 programs .
air mobility and other aeronautics programs declined $ 77 million due to lower operating profit in support and sustainment activities .
operating profit for the segment increased 20% ( 20 % ) in 2006 compared to 2005 .

operating profit increased in both combat aircraft and air mobility .
combat aircraft increased $ 114 million , mainly due to higher volume on the f-35 and f-22 programs , and improved performance on f-16 programs .
the improvement for the year was also attributable in part to the fact that in 2005 , operating profit included a reduction in earnings on the f-35 program .
air mobility operating profit increased $ 84 million , mainly due to improved performance on c-130j sustainment activities in 2006 .

backlog decreased in 2007 as compared to 2006 primarily as a result of sales volume on the f-35 program .
this decrease was offset partially by increased orders on the f-22 and c-130j programs .
electronic systems electronic systems 2019 operating results included the following : ( in millions ) 2007 2006 2005 .

net sales for electronic systems increased by 6% ( 6 % ) in 2007 compared to 2006 .
sales increased in missiles & fire control ( m&fc ) , maritime systems & sensors ( ms2 ) , and platform , training & energy ( pt&e ) .
m&fc sales increased $ 258 million mainly due to higher volume in fire control systems and air defense programs , which more than offset declines in tactical missile programs .

ms2 sales grew $ 254 million due to volume increases in undersea and radar systems activities that were offset partially by decreases in surface systems activities .
pt&e sales increased $ 113 million , primarily due to higher volume in platform integration activities , which more than offset declines in distribution technology activities .
net sales for electronic systems increased by 7% ( 7 % ) in 2006 compared to 2005 .

higher volume in platform integration activities led to increased sales of $ 329 million at pt&e .
ms2 sales increased $ 267 million primarily due to surface systems activities .
air defense programs contributed to increased sales of $ 118 million at m&fc .
operating profit for the segment increased by 12% ( 12 % ) in 2007 compared to 2006 , representing an increase in all three lines of business during the year .

operating profit increased $ 70 million at pt&e primarily due to higher volume and improved performance on platform integration activities .
ms2 operating profit increased $ 32 million due to higher volume on undersea and tactical systems activities that more than offset lower volume on surface systems activities .

at m&fc , operating profit increased $ 32 million due to higher volume in fire control systems and improved performance in tactical missile programs , which partially were offset by performance on certain international air defense programs in 2006 .
operating profit for the segment increased by 17% ( 17 % ) in 2006 compared to 2005 .
operating profit increased by $ 74 million at ms2 mainly due to higher volume on surface systems and undersea programs .

pt&e operating profit increased $ 61 million mainly due to improved performance on distribution technology activities .
higher volume on air defense programs contributed to a $ 52 million increase in operating profit at m&fc .
the increase in backlog during 2007 over 2006 resulted primarily from increased orders for certain tactical missile programs and fire control systems at m&fc and platform integration programs at pt&e.

 |
| table | ( in millions )     | 2007    | 2006    | 2005
------------------- | ------- | ------- | ------
net sales           | $ 11143 | $ 10519 | $ 9811
operating profit    | 1410    | 1264    | 1078
backlog at year-end | 21200   | 19700   | 18600 |


| _id | dd496ebc6 |
| title |  |
| text | entergy corporation and subsidiaries notes to financial statements ( a ) consists of pollution control revenue bonds and environmental revenue bonds , some of which are secured by collateral first mortgage bonds .
( b ) these notes do not have a stated interest rate , but have an implicit interest rate of 4.8% ( 4.8 % ) .
( c ) pursuant to the nuclear waste policy act of 1982 , entergy 2019s nuclear owner/licensee subsidiaries have contracts with the doe for spent nuclear fuel disposal service .

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

( e ) the fair value excludes lease obligations of $ 149 million at entergy louisiana and $ 97 million at system energy , long-term doe obligations of $ 181 million at entergy arkansas , and the note payable to nypa of $ 95 million at entergy , and includes debt due within one year .
fair values are classified as level 2 in the fair value hierarchy discussed in note 16 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades .

the annual long-term debt maturities ( excluding lease obligations and long-term doe obligations ) for debt outstanding as of december 31 , 2013 , for the next five years are as follows : amount ( in thousands ) .

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

in accordance with the purchase agreement with nypa , the purchase of indian point 2 in 2001 resulted in entergy becoming liable to nypa for an additional $ 10 million per year for 10 years , beginning in september 2003 .
this liability was recorded upon the purchase of indian point 2 in september 2001 .
in july 2003 a payment of $ 102 million was made prior to maturity on the note payable to nypa .

under a provision in a letter of credit supporting these notes , if certain of the utility operating companies or system energy were to default on other indebtedness , entergy could be required to post collateral to support the letter of credit .
entergy gulf states louisiana , entergy louisiana , entergy mississippi , entergy texas , and system energy have obtained long-term financing authorizations from the ferc that extend through october 2015 .

entergy arkansas has obtained long-term financing authorization from the apsc that extends through december 2015 .
entergy new orleans has obtained long-term financing authorization from the city council that extends through july 2014 .

capital funds agreement pursuant to an agreement with certain creditors , entergy corporation has agreed to supply system energy with sufficient capital to : 2022 maintain system energy 2019s equity capital at a minimum of 35% ( 35 % ) of its total capitalization ( excluding short- term debt ) ;

 |
| table | | amount ( in thousands )
---- | -----------------------
2014 | $ 385373
2015 | $ 1110566
2016 | $ 270852
2017 | $ 766801
2018 | $ 1324616 |


| _id | dd4bc1b94 |
| title |  |
| text | 108 / sl green realty corp .
2017 annual report espp provides for eligible employees to purchase the common stock at a purchase price equal to 85% ( 85 % ) of the lesser of ( 1 ) a0the market value of the common stock on the first day of the offer- ing period or ( 2 ) a0the market value of the common stock on the last day of the offering period .
the espp was approved by our stockholders at our 2008 annual meeting of stockholders .

as of december a031 , 2017 , 104597 a0shares of our common stock had been issued under the espp .
available for issuance , subject to adjustment upon a merger , reorganization , stock split or other similar corporate change .
the company filed a registration statement on form a0s-8 with the sec with respect to the espp .
the common stock is offered for purchase through a series of successive offering periods .

each offering period will be three months in duration and will begin on the first day of each calendar quarter , with the first a0offering period having commenced on january a01 , 2008 .
the 15 .

the 15 .
accumulated other comprehensive income the following tables set forth the changes in accumulated other comprehensive income ( loss ) by component as of december a031 , 2017 , 2016 and 2015 ( in thousands ) : sl a0green 2019s share net unrealized of joint venture net unrealized gain on net unrealized gain on derivative gain on derivative marketable instruments ( 1 ) instruments ( 2 ) securities total .

( 1 ) amount reclassified from accumulated other comprehensive income ( loss ) is included in interest expense in the respective consolidated statements of operations .
as of december a031 , 2017 and 2016 , the deferred net losses from these terminated hedges , which is included in accumulated other comprehensive loss relating to net unrealized loss on derivative instrument , was $ 3.2 a0million and $ 7.1 a0million , respectively .

( 2 ) amount reclassified from accumulated other comprehensive income ( loss ) is included in equity in net income from unconsolidated joint ventures in the respective consolidated statements of operations .
16 .
fair value measurements we are required to disclose fair value information with regard to our financial instruments , whether or not recognized in the consolidated balance sheets , for which it is practical to estimate fair value .

the fasb guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date .

we measure and/or disclose the estimated fair value of financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity 2019s own assumptions about market participant assumptions .

this hierarchy consists of three broad levels : level a01 2014 quoted prices ( unadjusted ) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date ; level a02 2014 inputs other than quoted prices included within level a01 , that are observable for the asset or liability , either directly or indirectly ; and level a03 2014 unobservable inputs for the asset or liability that are used when little or no market data is available .

we follow this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis .
in instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy , the level in the fair value hierarchy within which the entire fair value measure- ment falls is based on the lowest level of input that is significant to the fair value measurement in its entirety .

our assessment of the significance of the particular input to the fair value mea- surement in its entirety requires judgment and considers factors specific to the asset or liability.

 |
| table | | net unrealized gain on derivative instruments ( 1 ) | sl green 2019s share of joint venture net unrealized gain on derivative instruments ( 2 ) | net unrealized gain on marketable securities | total
---------------------------------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------------------------------------- | -------------------------------------------- | ----------------
balance at december 31 2014                                      | $ -9498 ( 9498 )                                    | $ -95 ( 95 )                                                                              | $ 2613                                       | $ -6980 ( 6980 )
other comprehensive loss before reclassifications                | -11143 ( 11143 )                                    | -1714 ( 1714 )                                                                            | -610 ( 610 )                                 | -13467 ( 13467 )
amounts reclassified from accumulated other comprehensive income | 10481                                               | 1217                                                                                | 2014                                         | 11698
balance at december 31 2015                                      | -10160 ( 10160 )                                    | -592 ( 592 )                                                                              | 2003                                         | -8749 ( 8749 )
other comprehensive income before reclassifications              | 13534                                               | 1160                                                                                | 3517                                         | 18211
amounts reclassified from accumulated other comprehensive income | 9222                                                | 3453                                                                                | 2014                                         | 12675
balance at december 31 2016                                      | 12596                                               | 4021                                                                                | 5520                                         | 22137
other comprehensive ( loss ) income before reclassifications     | -1618 ( 1618 )                                      | 233                                                                                | -1348 ( 1348 )                               | -2733 ( 2733 )
amounts reclassified from accumulated other comprehensive income | 1564                                                | 766                                                                                | -3130 ( 3130 )                               | -800 ( 800 )
balance at december 31 2017                                      | $ 12542                                             | $ 5020                                                                                | $ 1042                                       | $ 18604 |


| _id | dd4c453ae |
| title |  |
| text | contractual obligations fis 2019 long-term contractual obligations generally include its long-term debt , interest on long-term debt , lease payments on certain of its property and equipment and payments for data processing and maintenance .
for more descriptive information regarding the company's long-term debt , see note 13 in the notes to consolidated financial statements .

the following table summarizes fis 2019 significant contractual obligations and commitments as of december 31 , 2012 ( in millions ) : less than 1-3 3-5 more than total 1 year years years 5 years .

( 1 ) these calculations assume that : ( a ) applicable margins remain constant ; ( b ) all variable rate debt is priced at the one-month libor rate in effect as of december 31 , 2012 ; ( c ) no new hedging transactions are effected ; ( d ) only mandatory debt repayments are made ; and ( e ) no refinancing occurs at debt maturity .

( 2 ) amount includes the payment for labor claims related to fis' former item processing and remittance operations in brazil ( see note 3 to the consolidated financial statements ) and amounts due to the brazilian venture partner .

fis believes that its existing cash balances , cash flows from operations and borrowing programs will provide adequate sources of liquidity and capital resources to meet fis 2019 expected short-term liquidity needs and its long-term needs for the operations of its business , expected capital spending for the next 12 months and the foreseeable future and the satisfaction of these obligations and commitments .
off-balance sheet arrangements fis does not have any off-balance sheet arrangements .
item 7a .

item 7a .
quantitative and qualitative disclosure about market risks market risk we are exposed to market risks primarily from changes in interest rates and foreign currency exchange rates .
we use certain derivative financial instruments , including interest rate swaps and foreign currency forward exchange contracts , to manage interest rate and foreign currency risk .
we do not use derivatives for trading purposes , to generate income or to engage in speculative activity .

interest rate risk in addition to existing cash balances and cash provided by operating activities , we use fixed rate and variable rate debt to finance our operations .
we are exposed to interest rate risk on these debt obligations and related interest rate swaps .
the notes ( as defined in note 13 to the consolidated financial statements ) represent substantially all of our fixed-rate long-term debt obligations .
the carrying value of the notes was $ 1950.0 million as of december 31 , 2012 .

the fair value of the notes was approximately $ 2138.2 million as of december 31 , 2012 .
the potential reduction in fair value of the notes from a hypothetical 10 percent increase in market interest rates would not be material to the overall fair value of the debt .
our floating rate long-term debt obligations principally relate to borrowings under the fis credit agreement ( as also defined in note 13 to the consolidated financial statements ) .

an increase of 100 basis points in the libor rate would increase our annual debt service under the fis credit agreement , after we include the impact of our interest rate swaps , by $ 9.3 million ( based on principal amounts outstanding as of december 31 , 2012 ) .

we performed the foregoing sensitivity analysis based on the principal amount of our floating rate debt as of december 31 , 2012 , less the principal amount of such debt that was then subject to an interest rate swap converting such debt into fixed rate debt .
this sensitivity analysis is based solely on

 |
| table | | total    | less than 1 year | 1-3 years | 3-5 years | more than 5 years
----------------------------------- | -------- | ---------------- | --------- | --------- | -----------------
long-term debt                      | $ 4385.5 | $ 153.9          | $ 757.1   | $ 2274.5  | $ 1200.0
interest ( 1 )                      | 1137.6   | 200.4            | 372.9     | 288.8     | 275.5
operating leases                    | 226.6    | 55.0             | 96.2      | 46.4      | 29.0
data processing and maintenance     | 246.7    | 131.7            | 78.9      | 28.4      | 7.7
other contractual obligations ( 2 ) | 100.7    | 18.8             | 52.0      | 10.6      | 19.3
total                               | $ 6097.1 | $ 559.8          | $ 1357.1  | $ 2648.7  | $ 1531.5 |


| _id | dd4980dd0 |
| title |  |
| text | at december 31 , 2012 , total future minimum commitments under existing non-cancelable operat- ing leases and purchase obligations were as follows: .

( a ) includes $ 3.6 billion relating to fiber supply agreements entered into at the time of the company 2019s 2006 transformation plan forestland sales and in conjunction with the 2008 acquis- ition of weyerhaeuser company 2019s containerboard , packaging and recycling business .
rent expense was $ 231 million , $ 205 million and $ 210 million for 2012 , 2011 and 2010 , respectively .

guarantees in connection with sales of businesses , property , equipment , forestlands and other assets , interna- tional paper commonly makes representations and warranties relating to such businesses or assets , and may agree to indemnify buyers with respect to tax and environmental liabilities , breaches of representations and warranties , and other matters .

where liabilities for such matters are determined to be probable and subject to reasonable estimation , accrued liabilities are recorded at the time of sale as a cost of the transaction .
environmental proceedings international paper has been named as a potentially responsible party in environmental remediation actions under various federal and state laws , includ- ing the comprehensive environmental response , compensation and liability act ( cercla ) .

many of these proceedings involve the cleanup of hazardous substances at large commercial landfills that received waste from many different sources .
while joint and several liability is authorized under cercla and equivalent state laws , as a practical matter , liability for cercla cleanups is typically allocated among the many potential responsible parties .
remedial costs are recorded in the consolidated financial statements when they become probable and reasonably estimable .

international paper has estimated the probable liability associated with these matters to be approximately $ 92 million in the aggregate at december 31 , 2012 .
one of the matters referenced above is a closed wood treating facility located in cass lake , minneso- ta .
during 2009 , in connection with an environmental site remediation action under cercla , international paper submitted to the epa a site remediation feasi- bility study .

in june 2011 , the epa selected and published a proposed soil remedy at the site with an estimated cost of $ 46 million .
the overall remediation reserve for the site is currently $ 48 mil- lion to address this selection of an alternative for the soil remediation component of the overall site remedy .
in october 2011 , the epa released a public statement indicating that the final soil remedy deci- sion would be delayed .

in the unlikely event that the epa changes its proposed soil remedy and approves instead a more expensive clean-up alternative , the remediation costs could be material , and sig- nificantly higher than amounts currently recorded .
in october 2012 , the natural resource trustees for this site provided notice to international paper and other potentially responsible parties of their intent to per- form a natural resource damage assessment .

it is premature to predict the outcome of the assessment or to estimate a loss or range of loss , if any , which may be incurred .
in addition to the above matters , other remediation costs typically associated with the cleanup of hazardous substances at the company 2019s current , closed or formerly-owned facilities , and recorded as liabilities in the balance sheet , totaled approximately $ 46 million at december 31 , 2012 .

other than as described above , completion of required remedial actions is not expected to have a material effect on our consolidated financial statements .
the company is a potentially responsible party with respect to the allied paper , inc./portage creek/ kalamazoo river superfund site ( kalamazoo river superfund site ) in michigan .

the epa asserts that the site is contaminated primarily by pcbs as a result of discharges from various paper mills located along the river , including a paper mill formerly owned by st .
regis .
the company is a successor in interest to st .
regis .

regis .
international paper has not received any orders from the epa with respect to the site and is in the process of collecting information from the epa and other parties relative to the kalamazoo river superfund site to evaluate the extent of its liability , if any , with respect to the site .
accordingly , it is pre- mature to estimate a loss or range of loss with respect to this site .

also in connection with the kalamazoo river superfund site , the company was named as a defendant by georgia-pacific consumer products lp , fort james corporation and georgia pacific llc in a contribution and cost recovery action for alleged pollution at the kalamazoo river super- fund site .
the suit seeks contribution under cercla for $ 79 million in costs purportedly expended by plaintiffs as of the filing of the com- plaint , and for future remediation costs .

the suit alleges that a mill , during the time it was allegedly owned and operated by st .
regis , discharged pcb contaminated solids and paper residuals resulting from paper de-inking and recycling .
also named as defendants in the suit are ncr corporation and weyerhaeuser company .
in mid-2011 , the suit was

 |
| table | in millions                | 2013   | 2014  | 2015  | 2016  | 2017  | thereafter
-------------------------- | ------ | ----- | ----- | ----- | ----- | ----------
lease obligations          | $ 198  | $ 136 | $ 106 | $ 70  | $ 50  | $ 141
purchase obligations ( a ) | 3213   | 828   | 722   | 620   | 808   | 2654
total                      | $ 3411 | $ 964 | $ 828 | $ 690 | $ 858 | $ 2795 |


| _id | dd4c0d3e6 |
| title |  |
| text | failure to comply with the financial and other covenants under our credit facilities , as well as the occurrence of certain material adverse events , would constitute defaults and would allow the lenders under our credit facilities to accelerate the maturity of all indebtedness under the related agreements .
this could also have an adverse impact on the availability of financial assurances .

in addition , maturity acceleration on our credit facilities constitutes an event of default under our other debt instruments , including our senior notes , and , therefore , our senior notes would also be subject to acceleration of maturity .
if such acceleration were to occur , we would not have sufficient liquidity available to repay the indebtedness .

we would likely have to seek an amendment under our credit facilities for relief from the financial covenants or repay the debt with proceeds from the issuance of new debt or equity , or asset sales , if necessary .
we may be unable to amend our credit facilities or raise sufficient capital to repay such obligations in the event the maturities are accelerated .

financial assurance we are required to provide financial assurance to governmental agencies and a variety of other entities under applicable environmental regulations relating to our landfill operations for capping , closure and post-closure costs , and related to our performance under certain collection , landfill and transfer station contracts .
we satisfy these financial assurance requirements by providing surety bonds , letters of credit , insurance policies or trust deposits .

the amount of the financial assurance requirements for capping , closure and post-closure costs is determined by applicable state environmental regulations .
the financial assurance requirements for capping , closure and post-closure costs may be associated with a portion of the landfill or the entire landfill .

generally , states will require a third-party engineering specialist to determine the estimated capping , closure and post- closure costs that are used to determine the required amount of financial assurance for a landfill .
the amount of financial assurance required can , and generally will , differ from the obligation determined and recorded under u.s .
gaap .
the amount of the financial assurance requirements related to contract performance varies by contract .

additionally , we are required to provide financial assurance for our insurance program and collateral for certain performance obligations .
we do not expect a material increase in financial assurance requirements during 2010 , although the mix of financial assurance instruments may change .
these financial instruments are issued in the normal course of business and are not debt of our company .

since we currently have no liability for these financial assurance instruments , they are not reflected in our consolidated balance sheets .
however , we record capping , closure and post-closure liabilities and self-insurance liabilities as they are incurred .
the underlying obligations of the financial assurance instruments , in excess of those already reflected in our consolidated balance sheets , would be recorded if it is probable that we would be unable to fulfill our related obligations .

we do not expect this to occur .
off-balance sheet arrangements we have no off-balance sheet debt or similar obligations , other than financial assurance instruments and operating leases that are not classified as debt .
we do not guarantee any third-party debt .
free cash flow we define free cash flow , which is not a measure determined in accordance with u.s .

gaap , as cash provided by operating activities less purchases of property and equipment , plus proceeds from sales of property and equipment as presented in our consolidated statements of cash flows .
our free cash flow for the years ended december 31 , 2009 , 2008 and 2007 is calculated as follows ( in millions ) : .

 |
| table | | 2009             | 2008             | 2007
--------------------------------------------- | ---------------- | ---------------- | ----------------
cash provided by operating activities         | $ 1396.5         | $ 512.2          | $ 661.3
purchases of property and equipment           | -826.3 ( 826.3 ) | -386.9 ( 386.9 ) | -292.5 ( 292.5 )
proceeds from sales of property and equipment | 31.8             | 8.2              | 6.1
free cash flow                                | $ 602.0          | $ 133.5          | $ 374.9 |


| _id | dd4ba83ec |
| title |  |
| text | liquidity and capital resources as of december 31 , 2006 , our principal sources of liquidity included cash , cash equivalents , the sale of receivables , and our revolving credit facilities , as well as the availability of commercial paper and other sources of financing through the capital markets .

we had $ 2 billion of committed credit facilities available , of which there were no borrowings outstanding as of december 31 , 2006 , and we did not make any short-term borrowings under these facilities during the year .
the value of the outstanding undivided interest held by investors under the sale of receivables program was $ 600 million as of december 31 , 2006 .
the sale of receivables program is subject to certain requirements , including the maintenance of an investment grade bond rating .

if our bond rating were to deteriorate , it could have an adverse impact on our liquidity .
access to commercial paper is dependent on market conditions .
deterioration of our operating results or financial condition due to internal or external factors could negatively impact our ability to utilize commercial paper as a source of liquidity .
liquidity through the capital markets is also dependent on our financial stability .

at both december 31 , 2006 and 2005 , we had a working capital deficit of approximately $ 1.1 billion .
a working capital deficit is common in our industry and does not indicate a lack of liquidity .
we maintain adequate resources to meet our daily cash requirements , and we have sufficient financial capacity to satisfy our current liabilities .
financial condition cash flows millions of dollars 2006 2005 2004 .

cash provided by operating activities 2013 higher income in 2006 generated the increased cash provided by operating activities , which was partially offset by higher income tax payments , $ 150 million in voluntary pension contributions , higher material and supply inventories , and higher management incentive payments in 2006 .

higher income , lower management incentive payments in 2005 ( executive bonuses , which would have been paid to individuals in 2005 , were not awarded based on company performance in 2004 and bonuses for the professional workforce that were paid out in 2005 were significantly reduced ) , and working capital performance generated higher cash from operating activities in 2005 .

a voluntary pension contribution of $ 100 million in 2004 also augmented the positive year-over-year variance in 2005 as no pension contribution was made in 2005 .
this improvement was partially offset by cash received in 2004 for income tax refunds .
cash used in investing activities 2013 an insurance settlement for the 2005 january west coast storm and lower balances for work in process decreased the amount of cash used in investing activities in 2006 .

higher capital investments and lower proceeds from asset sales partially offset this decrease .
increased capital spending , partially offset by higher proceeds from asset sales , increased the amount of cash used in investing activities in 2005 compared to 2004 .
cash used in financing activities 2013 the increase in cash used in financing activities primarily resulted from lower net proceeds from equity compensation plans ( $ 189 million in 2006 compared to $ 262 million in 2005 ) .

the increase in 2005 results from debt issuances in 2004 and higher debt repayments in 2005 .
we did not issue debt in 2005 versus $ 745 million of debt issuances in 2004 , and we repaid $ 699 million of debt in 2005 compared to $ 588 million in 2004 .
the higher outflows in 2005 were partially offset by higher net proceeds from equity compensation plans ( $ 262 million in 2005 compared to $ 80 million in 2004 ) .

 |
| table | cash flowsmillions of dollars           | 2006           | 2005           | 2004
--------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities   | $ 2880         | $ 2595         | $ 2257
cash used in investing activities       | -2042 ( 2042 ) | -2047 ( 2047 ) | -1732 ( 1732 )
cash used in financing activities       | -784 ( 784 )   | -752 ( 752 )   | -75 ( 75 )
net change in cash and cash equivalents | $ 54           | $ -204 ( 204 ) | $ 450 |


| _id | dd4be4248 |
| title |  |
| text | page 74 notes to five year summary ( a ) includes the effects of items not considered in senior management 2019s assessment of the operating performance of the corporation 2019s business segments ( see the section , 201cresults of operations 201d in management 2019s discussion and analysis of financial condition and results of operations ( md&a ) ) which , on a combined basis , increased earnings from continuing operations before income taxes by $ 173 million , $ 113 million after tax ( $ 0.25 per share ) .

( b ) includes the effects of items not considered in senior management 2019s assessment of the operating performance of the corporation 2019s business segments ( see the section , 201cresults of operations 201d in md&a ) which , on a combined basis , decreased earnings from continuing operations before income taxes by $ 215 million , $ 154 million after tax ( $ 0.34 per share ) .

also includes a reduction in income tax expense resulting from the closure of an internal revenue service examination of $ 144 million ( $ 0.32 per share ) .
these items reduced earnings by $ 10 million after tax ( $ 0.02 per share ) .

( c ) includes the effects of items not considered in senior management 2019s assessment of the operating performance of the corporation 2019s business segments ( see the section , 201cresults of operations 201d in md&a ) which , on a combined basis , decreased earnings from continuing operations before income taxes by $ 153 million , $ 102 million after tax ( $ 0.22 per share ) .

( d ) includes the effects of items not considered in senior management 2019s assessment of the operating performance of the corporation 2019s business segments which , on a combined basis , decreased earnings from continuing operations before income taxes by $ 1112 million , $ 632 million after tax ( $ 1.40 per share ) .
in 2002 , the corporation adopted fas 142 which prohibits the amortization of goodwill .

( e ) includes the effects of items not considered in senior management 2019s assessment of the operating performance of the corporation 2019s business segments which , on a combined basis , decreased earnings from continuing operations before income taxes by $ 973 million , $ 651 million after tax ( $ 1.50 per share ) .

also includes a gain from the disposal of a business and charges for the corporation 2019s exit from its global telecommunications services business which is included in discontinued operations and which , on a combined basis , increased the net loss by $ 1 billion ( $ 2.38 per share ) .

( f ) the corporation defines return on invested capital ( roic ) as net income plus after-tax interest expense divided by average invested capital ( stockholders 2019 equity plus debt ) , after adjusting stockholders 2019 equity by adding back the minimum pension liability .
the adjustment to add back the minimum pension liability is a revision to our calculation in 2005 , which the corporation believes more closely links roic to management performance .

further , the corporation believes that reporting roic provides investors with greater visibility into how effectively lockheed martin uses the capital invested in its operations .
the corporation uses roic to evaluate multi-year investment decisions and as a long-term performance measure , and also uses roic as a factor in evaluating management performance under certain incentive compensation plans .

roic is not a measure of financial performance under gaap , and may not be defined and calculated by other companies in the same manner .
roic should not be considered in isola- tion or as an alternative to net earnings as an indicator of performance .
the following calculations of roic reflect the revision to the calculation discussed above for all periods presented .
( in millions ) 2005 2004 2003 2002 2001 .

1 represents after-tax interest expense utilizing the federal statutory rate of 35% ( 35 % ) .
2 debt consists of long-term debt , including current maturities , and short-term borrowings ( if any ) .
3 equity includes non-cash adjustments for other comprehensive losses , primarily for the additional minimum pension liability .

4 minimum pension liability values reflect the cumulative value of entries identified in our statement of stockholders equity under the caption 201cminimum pension liability . 201d the annual minimum pension liability adjustments to equity were : 2001 = ( $ 33 million ) ; 2002 = ( $ 1537 million ) ; 2003 = $ 331 million ; 2004 = ( $ 285 million ) ; 2005 = ( $ 105 million ) .

as these entries are recorded in the fourth quarter , the value added back to our average equity in a given year is the cumulative impact of all prior year entries plus 20% ( 20 % ) of the cur- rent year entry value .
5 yearly averages are calculated using balances at the start of the year and at the end of each quarter .
lockheed martin corporation

 |
| table | ( in millions )                                   | 2005             | 2004             | 2003           | 2002           | 2001
------------------------------------------------- | ---------------- | ---------------- | -------------- | -------------- | ----------------
net earnings                                      | $ 1825           | $ 1266           | $ 1053         | $ 500          | $ -1046 ( 1046 )
interest expense ( multiplied by 65% ( 65 % ) ) 1 | 241              | 276              | 317            | 378            | 455
return                                            | $ 2066           | $ 1542           | $ 1370         | $ 878          | $ -591 ( 591 )
average debt2 5                                   | $ 5077           | $ 5932           | $ 6612         | $ 7491         | $ 8782
average equity3 5                                 | 7590             | 7015             | 6170           | 6853           | 7221
average minimum pension liability3 4 5            | 1545             | 1296             | 1504           | 341            | 6
average invested capital                          | $ 14212          | $ 14243          | $ 14286        | $ 14685        | $ 16009
return on invested capital                        | 14.5% ( 14.5 % ) | 10.8% ( 10.8 % ) | 9.6% ( 9.6 % ) | 6.0% ( 6.0 % ) | ( 3.7 ) % (  % ) |


| _id | dd4bbd4e0 |
| title |  |
| text | shareholder return performance presentation the graph presented below compares the cumulative total shareholder return on state street's common stock to the cumulative total return of the s&p 500 index and the s&p financial index over a five-year period .
the cumulative total shareholder return assumes the investment of $ 100 in state street common stock and in each index on december 31 , 2007 at the closing price on the last trading day of 2007 , and also assumes reinvestment of common stock dividends .

the s&p financial index is a publicly available measure of 80 of the standard & poor's 500 companies , representing 26 diversified financial services companies , 22 insurance companies , 17 real estate companies and 15 banking companies .
comparison of five-year cumulative total shareholder return .

 |
| table | | 2007  | 2008 | 2009 | 2010 | 2011 | 2012
------------------------ | ----- | ---- | ---- | ---- | ---- | ----
state street corporation | $ 100 | $ 49 | $ 55 | $ 58 | $ 52 | $ 61
s&p 500 index            | 100   | 63   | 80   | 92   | 94   | 109
s&p financial index      | 100   | 45   | 52   | 59   | 49   | 63 |


| _id | dd4b974d4 |
| title |  |
| text | part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the following table presents reported quarterly high and low per share sale prices of our common stock on the nyse for the years 2015 and 2014. .

on february 19 , 2016 , the closing price of our common stock was $ 87.32 per share as reported on the nyse .
as of february 19 , 2016 , we had 423897556 outstanding shares of common stock and 159 registered holders .
dividends as a reit , we must annually distribute to our stockholders an amount equal to at least 90% ( 90 % ) of our reit taxable income ( determined before the deduction for distributed earnings and excluding any net capital gain ) .

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

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

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

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

we have distributed an aggregate of approximately $ 2.3 billion to our common stockholders , including the dividend paid in january 2016 , primarily subject to taxation as ordinary income .
during the year ended december 31 , 2015 , we declared the following cash distributions:

 |
| table | 2015                       | high     | low
-------------------------- | -------- | -------
quarter ended march 31     | $ 101.88 | $ 93.21
quarter ended june 30      | 98.64    | 91.99
quarter ended september 30 | 101.54   | 86.83
quarter ended december 31  | 104.12   | 87.23
2014                       | high     | low
quarter ended march 31     | $ 84.90  | $ 78.38
quarter ended june 30      | 90.73    | 80.10
quarter ended september 30 | 99.90    | 89.05
quarter ended december 31  | 106.31   | 90.20 |


| _id | dd4b96bce |
| title |  |
| text | reinvested for continued use in foreign operations .
if the total undistributed earnings of foreign subsidiaries were remitted , a significant amount of the additional tax would be offset by the allowable foreign tax credits .
it is not practical for us to determine the additional tax of remitting these earnings .

in september 2007 , we reached a settlement with the united states department of justice to resolve an investigation into financial relationships between major orthopaedic manufacturers and consulting orthopaedic surgeons .
under the terms of the settlement , we paid a civil settlement amount of $ 169.5 million and we recorded an expense in that amount .
at the time , no tax benefit was recorded related to the settlement expense due to the uncertainty as to the tax treatment .

during the third quarter of 2008 , we reached an agreement with the u.s .
internal revenue service ( irs ) confirming the deductibility of a portion of the settlement payment .
as a result , during 2008 we recorded a current tax benefit of $ 31.7 million .
in june 2006 , the financial accounting standards board ( fasb ) issued interpretation no .
48 , accounting for uncertainty in income taxes 2013 an interpretation of fasb statement no .
109 , accounting for income taxes ( fin 48 ) .

109 , accounting for income taxes ( fin 48 ) .
fin 48 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements .
under fin 48 , we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities , based on the technical merits of the position .

the tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement .
fin 48 also provides guidance on derecognition , classification , interest and penalties on income taxes , accounting in interim periods and requires increased disclosures .
we adopted fin 48 on january 1 , 2007 .

we adopted fin 48 on january 1 , 2007 .
prior to the adoption of fin 48 we had a long term tax liability for expected settlement of various federal , state and foreign income tax liabilities that was reflected net of the corollary tax impact of these expected settlements of $ 102.1 million , as well as a separate accrued interest liability of $ 1.7 million .

as a result of the adoption of fin 48 , we are required to present the different components of such liability on a gross basis versus the historical net presentation .
the adoption resulted in the financial statement liability for unrecognized tax benefits decreasing by $ 6.4 million as of january 1 , 2007 .

the adoption resulted in this decrease in the liability as well as a reduction to retained earnings of $ 4.8 million , a reduction in goodwill of $ 61.4 million , the establishment of a tax receivable of $ 58.2 million , which was recorded in other current and non-current assets on our consolidated balance sheet , and an increase in an interest/penalty payable of $ 7.9 million , all as of january 1 , 2007 .

therefore , after the adoption of fin 48 , the amount of unrecognized tax benefits is $ 95.7 million as of january 1 , 2007 .
as of december 31 , 2008 , the amount of unrecognized tax benefits is $ 129.5 million .
of this amount , $ 45.5 million would impact our effective tax rate if recognized .
$ 38.2 million of the $ 129.5 million liability for unrecognized tax benefits relate to tax positions of acquired entities taken prior to their acquisition by us .

under fas 141 ( r ) , if these liabilities are settled for different amounts , they will affect the income tax expense in the period of reversal or settlement .
the following is a tabular reconciliation of the total amounts of unrecognized tax benefits ( in millions ) : .

we recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense in the consolidated statements of earnings , which is consistent with the recognition of these items in prior reporting periods .
as of december 31 , 2007 , we recorded a liability of $ 19.6 million for accrued interest and penalties , of which $ 14.7 million would impact our effective tax rate , if recognized .
the amount of this liability is $ 22.9 million as of december 31 , 2008 .

of this amount , $ 17.1 million would impact our effective tax rate , if recognized .
we expect that the amount of tax liability for unrecognized tax benefits will change in the next twelve months ; however , we do not expect these changes will have a significant impact on our results of operations or financial position .
the u.s .
federal statute of limitations remains open for the year 2003 and onward .
the u.s .
federal returns for years 2003 and 2004 are currently under examination by the irs .

on july 15 , 2008 , the irs issued its examination report .
we filed a formal protest on august 15 , 2008 and requested a conference with the appeals office regarding disputed issues .
although the appeals process could take several years , we do not anticipate resolution of the audit will result in any significant impact on our results of operations , financial position or cash flows .
in addition , for the 1999 tax year of centerpulse , which we acquired in october 2003 , one issue remains in dispute .

state income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return .
the state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states .
we have various state income tax returns in the process of examination , administrative appeals or litigation .
it is z i m m e r h o l d i n g s , i n c .

it is z i m m e r h o l d i n g s , i n c .
2 0 0 8 f o r m 1 0 - k a n n u a l r e p o r t notes to consolidated financial statements ( continued ) %%transmsg*** transmitting job : c48761 pcn : 057000000 ***%%pcmsg|57 |00010|yes|no|02/24/2009 06:10|0|0|page is valid , no graphics -- color : d|

 |
| table | | 2008           | 2007
-------------------------------------------------------- | -------------- | ------------
balance at january 1                                     | $ 135.2        | $ 95.7
increases related to prior periods                       | 12.1           | 27.4
decreases related to prior periods                       | -32.0 ( 32.0 ) | -5.5 ( 5.5 )
increases related to current period                      | 15.8           | 21.9
decreases related to settlements with taxing authorities | -1.3 ( 1.3 )   | -1.3 ( 1.3 )
decreases related to lapse of statue of limitations      | -0.3 ( 0.3 )   | -3.0 ( 3.0 )
balance at december 31                                   | $ 129.5        | $ 135.2 |


| _id | dd4b979de |
| title |  |
| text | stock options 2005 stock and incentive plan in june 2005 , the stockholders of the company approved the 2005 stock and incentive plan ( the 2005 stock plan ) .
upon adoption of the 2005 stock plan , issuance of options under the company 2019s existing 2000 stock plan ceased .
additionally , in connection with the acquisition of solexa , the company assumed stock options granted under the 2005 solexa equity incentive plan ( the 2005 solexa equity plan ) .

as of december 30 , 2007 , an aggregate of up to 13485619 shares of the company 2019s common stock were reserved for issuance under the 2005 stock plan and the 2005 solexa equity plan .

the 2005 stock plan provides for an automatic annual increase in the shares reserved for issuance by the lesser of 5% ( 5 % ) of outstanding shares of the company 2019s common stock on the last day of the immediately preceding fiscal year , 1200000 shares or such lesser amount as determined by the company 2019s board of directors .
as of december 30 , 2007 , options to purchase 1834384 shares remained available for future grant under the 2005 stock plan and 2005 solexa equity plan .

the company 2019s stock option activity under all stock option plans from january 2 , 2005 through december 30 , 2007 is as follows : options weighted- average exercise price .

illumina , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | | options              | weighted- average exercise price
-------------------------------------------- | -------------------- | --------------------------------
outstanding at january 2 2005                | 6205020              | $ 6.99
granted                                      | 2992300              | $ 10.02
exercised                                    | -869925 ( 869925 )   | $ 4.66
cancelled                                    | -1001964 ( 1001964 ) | $ 11.00
outstanding at january 1 2006                | 7325431              | $ 7.96
granted                                      | 2621050              | $ 27.24
exercised                                    | -1273119 ( 1273119 ) | $ 7.28
cancelled                                    | -314242 ( 314242 )   | $ 12.44
outstanding at december 31 2006              | 8359120              | $ 13.94
options assumed through business combination | 1424332              | $ 21.37
granted                                      | 3784508              | $ 40.64
exercised                                    | -2179286 ( 2179286 ) | $ 12.06
cancelled                                    | -964740 ( 964740 )   | $ 22.38
outstanding at december 30 2007              | 10423934             | $ 24.26 |


| _id | dd4bcdf70 |
| title |  |
| text | 38 2015 ppg annual report and form 10-k notes to the consolidated financial statements 1 .
summary of significant accounting policies principles of consolidation the accompanying consolidated financial statements include the accounts of ppg industries , inc .
( 201cppg 201d or the 201ccompany 201d ) and all subsidiaries , both u.s .
and non-u.s. , that it controls .
ppg owns more than 50% ( 50 % ) of the voting stock of most of the subsidiaries that it controls .

for those consolidated subsidiaries in which the company 2019s ownership is less than 100% ( 100 % ) , the outside shareholders 2019 interests are shown as noncontrolling interests .
investments in companies in which ppg owns 20% ( 20 % ) to 50% ( 50 % ) of the voting stock and has the ability to exercise significant influence over operating and financial policies of the investee are accounted for using the equity method of accounting .

as a result , ppg 2019s share of the earnings or losses of such equity affiliates is included in the accompanying consolidated statement of income and ppg 2019s share of these companies 2019 shareholders 2019 equity is included in 201cinvestments 201d in the accompanying consolidated balance sheet .
transactions between ppg and its subsidiaries are eliminated in consolidation .
use of estimates in the preparation of financial statements the preparation of financial statements in conformity with u.s .

generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported amounts of income and expenses during the reporting period .

such estimates also include the fair value of assets acquired and liabilities assumed resulting from the allocation of the purchase price related to business combinations consummated .
actual outcomes could differ from those estimates .
revenue recognition the company recognizes revenue when the earnings process is complete .
revenue from sales is recognized by all operating segments when goods are shipped and title to inventory and risk of loss passes to the customer or when services have been rendered .

shipping and handling costs amounts billed to customers for shipping and handling are reported in 201cnet sales 201d in the accompanying consolidated statement of income .
shipping and handling costs incurred by the company for the delivery of goods to customers are included in 201ccost of sales , exclusive of depreciation and amortization 201d in the accompanying consolidated statement of income .

selling , general and administrative costs amounts presented as 201cselling , general and administrative 201d in the accompanying consolidated statement of income are comprised of selling , customer service , distribution and advertising costs , as well as the costs of providing corporate- wide functional support in such areas as finance , law , human resources and planning .

distribution costs pertain to the movement and storage of finished goods inventory at company- owned and leased warehouses , terminals and other distribution facilities .
advertising costs advertising costs are expensed as incurred and totaled $ 324 million , $ 297 million and $ 235 million in 2015 , 2014 and 2013 , respectively .
research and development research and development costs , which consist primarily of employee related costs , are charged to expense as incurred. .

legal costs legal costs , primarily include costs associated with acquisition and divestiture transactions , general litigation , environmental regulation compliance , patent and trademark protection and other general corporate purposes , are charged to expense as incurred .
foreign currency translation the functional currency of most significant non-u.s .
operations is their local currency .
assets and liabilities of those operations are translated into u.s .

dollars using year-end exchange rates ; income and expenses are translated using the average exchange rates for the reporting period .
unrealized foreign currency translation adjustments are deferred in accumulated other comprehensive loss , a separate component of shareholders 2019 equity .
cash equivalents cash equivalents are highly liquid investments ( valued at cost , which approximates fair value ) acquired with an original maturity of three months or less .

short-term investments short-term investments are highly liquid , high credit quality investments ( valued at cost plus accrued interest ) that have stated maturities of greater than three months to one year .
the purchases and sales of these investments are classified as investing activities in the consolidated statement of cash flows .

marketable equity securities the company 2019s investment in marketable equity securities is recorded at fair market value and reported in 201cother current assets 201d and 201cinvestments 201d in the accompanying consolidated balance sheet with changes in fair market value recorded in income for those securities designated as trading securities and in other comprehensive income , net of tax , for those designated as available for sale securities.

 |
| table | ( $ in millions )                        | 2015  | 2014  | 2013
---------------------------------------- | ----- | ----- | -----
research and development 2013 total      | $ 505 | $ 509 | $ 479
less depreciation on research facilities | 19    | 17    | 16
research and development net             | $ 486 | $ 492 | $ 463 |


| _id | dd4c002fe |
| title |  |
| text | expenditures and acquisitions of leased properties are funded by the original contributor of the assets , but no change in ownership interest may result from these contributions .
an excess of ashland funded improvements over marathon funded improvements results in a net gain and an excess of marathon funded improvements over ashland funded improvements results in a net loss .
cost of revenues increased by $ 8.718 billion in 2003 from 2002 and $ 367 million in 2002 from 2001 .

the increases in the oerb segment were primarily a result of higher natural gas and liquid hydrocarbon costs .
the increases in the rm&t segment primarily reflected higher acquisition costs for crude oil , refined products , refinery charge and blend feedstocks and increased manufacturing expenses .
selling , general and administrative expenses increased by $ 107 million in 2003 from 2002 and $ 125 million in 2002 from 2001 .

the increase in 2003 was primarily a result of increased employee benefits ( caused by increased pension expense resulting from changes in actuarial assumptions and a decrease in realized returns on plan assets ) and other employee related costs .
also , marathon changed assumptions in the health care cost trend rate from 7.5% ( 7.5 % ) to 10% ( 10 % ) , resulting in higher retiree health care costs .

additionally , during 2003 , marathon recorded a charge of $ 24 million related to organizational and business process changes .
the increase in 2002 primarily reflected increased employee related costs .
inventory market valuation reserve is established to reduce the cost basis of inventories to current market value .
the 2002 results of operations include credits to income from operations of $ 71 million , reversing the imv reserve at december 31 , 2001 .

for additional information on this adjustment , see 201cmanagement 2019s discussion and analysis of critical accounting estimates 2013 net realizable value of inventories 201d on page 31 .
net interest and other financial costs decreased by $ 82 million in 2003 from 2002 , following an increase of $ 96 million in 2002 from 2001 .

the decrease in 2003 is primarily due to an increase in capitalized interest related to increased long-term construction projects , the favorable effect of interest rate swaps , the favorable effect of interest on tax deficiencies and increased interest income on investments .
the increase in 2002 was primarily due to higher average debt levels resulting from acquisitions and the separation .

additionally , included in net interest and other financing costs are foreign currency gains of $ 13 million and $ 8 million for 2003 and 2002 and losses of $ 5 million for 2001 .
loss from early extinguishment of debt in 2002 was attributable to the retirement of $ 337 million aggregate principal amount of debt , resulting in a loss of $ 53 million .
as a result of the adoption of statement of financial accounting standards no .
145 201crescission of fasb statements no .

145 201crescission of fasb statements no .
4 , 44 , and 64 , amendment of fasb statement no .
13 , and technical corrections 201d ( 201csfas no .
145 201d ) , the loss from early extinguishment of debt that was previously reported as an extraordinary item ( net of taxes of $ 20 million ) has been reclassified into income before income taxes .
the adoption of sfas no .
145 had no impact on net income for 2002 .

145 had no impact on net income for 2002 .
minority interest in income of map , which represents ashland 2019s 38 percent ownership interest , increased by $ 129 million in 2003 from 2002 , following a decrease of $ 531 million in 2002 from 2001 .
map income was higher in 2003 compared to 2002 as discussed below in the rm&t segment .
map income was significantly lower in 2002 compared to 2001 as discussed below in the rm&t segment .

provision for income taxes increased by $ 215 million in 2003 from 2002 , following a decrease of $ 458 million in 2002 from 2001 , primarily due to $ 720 million increase and $ 1.356 billion decrease in income before income taxes .
the effective tax rate for 2003 was 36.6% ( 36.6 % ) compared to 42.1% ( 42.1 % ) and 37.1% ( 37.1 % ) for 2002 and 2001 .

the higher rate in 2002 was due to the united kingdom enactment of a supplementary 10 percent tax on profits from the north sea oil and gas production , retroactively effective to april 17 , 2002 .
in 2002 , marathon recognized a one-time noncash deferred tax adjustment of $ 61 million as a result of the rate increase .
the following is an analysis of the effective tax rate for the periods presented: .

( a ) the deferred tax effect related to the enactment of a supplemental tax in the u.k .
increased the effective tax rate 7.0 percent in 2002.

 |
| table | | 2003             | 2002             | 2001
------------------------------------------------------------- | ---------------- | ---------------- | ----------------
statutory tax rate                                            | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % )
effects of foreign operations ( a )                           | -0.4 ( 0.4 )     | 5.6              | -0.7 ( 0.7 )
state and local income taxes after federal income tax effects | 2.2              | 3.9              | 3.0
other federal tax effects                                     | -0.2 ( 0.2 )     | -2.4 ( 2.4 )     | -0.2 ( 0.2 )
effective tax rate                                            | 36.6% ( 36.6 % ) | 42.1% ( 42.1 % ) | 37.1% ( 37.1 % ) |


| _id | dd4baa73c |
| title |  |
| text | 17 .
leases we lease certain locomotives , freight cars , and other property .
the consolidated statements of financial position as of december 31 , 2017 , and 2016 included $ 1635 million , net of $ 953 million of accumulated depreciation , and $ 1997 million , net of $ 1121 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 , 2017 , were as follows : millions operating leases capital leases .

approximately 97% ( 97 % ) of capital lease payments relate to locomotives .
rent expense for operating leases with terms exceeding one month was $ 480 million in 2017 , $ 535 million in 2016 , and $ 590 million in 2015 .
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 95% ( 95 % ) of the recorded liability is related to asserted claims and approximately 5% ( 5 % ) is related to unasserted claims at december 31 , 2017 .

because of the uncertainty surrounding the ultimate outcome of personal injury claims , it is reasonably possible that future costs to settle these claims may range from approximately $ 285 million to $ 310 million .
we record an accrual at the low end of the range as no amount of loss within the range is more probable than any other .
estimates can vary over time due to evolving trends in litigation.

 |
| table | millions                                | operatingleases | capitalleases
--------------------------------------- | --------------- | -------------
2018                                    | $ 398           | $ 173
2019                                    | 359             | 156
2020                                    | 297             | 164
2021                                    | 259             | 168
2022                                    | 221             | 147
later years                             | 1115            | 271
total minimum lease payments            | $ 2649          | $ 1079
amount representing interest            | n/a             | -187 ( 187 )
present value of minimum lease payments | n/a             | $ 892 |


| _id | dd4bf589a |
| title |  |
| text | notes to consolidated financial statements investments in funds that calculate net asset value per share cash instruments at fair value include investments in funds that are valued based on the net asset value per share ( nav ) of the investment fund .

the firm uses nav as its measure of fair value for fund investments when ( i ) the fund investment does not have a readily determinable fair value and ( ii ) the nav of the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting , including measurement of the underlying investments at fair value .

the firm 2019s investments in funds that calculate nav primarily consist of investments in firm-sponsored funds where the firm co-invests with third-party investors .
the private equity , credit and real estate funds are primarily closed-end funds in which the firm 2019s investments are not eligible for redemption .

distributions will be received from these funds as the underlying assets are liquidated and it is estimated that substantially all of the underlying assets of existing funds will be liquidated over the next seven years .
the firm continues to manage its existing funds taking into account the transition periods under the volcker rule of the u.s .
dodd-frank wall street reform and consumer protection act ( dodd-frank act ) , although the rules have not yet been finalized .

the firm 2019s investments in hedge funds are generally redeemable on a quarterly basis with 91 days 2019 notice , subject to a maximum redemption level of 25% ( 25 % ) of the firm 2019s initial investments at any quarter-end .
the firm currently plans to comply with the volcker rule by redeeming certain of its interests in hedge funds .
the firm redeemed approximately $ 1.06 billion of these interests in hedge funds during the year ended december 2012 .

the table below presents the fair value of the firm 2019s investments in , and unfunded commitments to , funds that calculate nav. .

1 .
these funds primarily invest in a broad range of industries worldwide in a variety of situations , including leveraged buyouts , recapitalizations and growth investments .
2 .

2 .
these funds generally invest in loans and other fixed income instruments and are focused on providing private high-yield capital for mid- to large-sized leveraged and management buyout transactions , recapitalizations , financings , refinancings , acquisitions and restructurings for private equity firms , private family companies and corporate issuers .
3 .

3 .
these funds are primarily multi-disciplinary hedge funds that employ a fundamental bottom-up investment approach across various asset classes and strategies including long/short equity , credit , convertibles , risk arbitrage , special situations and capital structure arbitrage .
4 .
these funds invest globally , primarily in real estate companies , loan portfolios , debt recapitalizations and direct property .
goldman sachs 2012 annual report 127

 |
| table | in millions           | as of december 2012 fair value of investments | as of december 2012 unfunded commitments | as of december 2012 fair value of investments | unfunded commitments
--------------------- | --------------------------------------------- | ---------------------------------------- | --------------------------------------------- | --------------------
private equity funds1 | $ 7680                                        | $ 2778                                   | $ 8074                                        | $ 3514
credit funds2         | 3927                                          | 2843                                     | 3596                                          | 3568
hedge funds3          | 2167                                          | 2014                                     | 3165                                          | 2014
real estatefunds4     | 2006                                          | 870                                      | 1531                                          | 1613
total                 | $ 15780                                       | $ 6491                                   | $ 16366                                       | $ 8695 |


| _id | dd4ba850e |
| title |  |
| text | 35% ( 35 % ) due primarily to certain undistributed foreign earnings for which no u.s .
taxes are provided because such earnings are intended to be indefinitely reinvested outside the u.s .
as of september 29 , 2012 , the company had deferred tax assets arising from deductible temporary differences , tax losses , and tax credits of $ 4.0 billion , and deferred tax liabilities of $ 14.9 billion .

management believes it is more likely than not that forecasted income , including income that may be generated as a result of certain tax planning strategies , together with future reversals of existing taxable temporary differences , will be sufficient to fully recover the deferred tax assets .
the company will continue to evaluate the realizability of deferred tax assets quarterly by assessing the need for and amount of a valuation allowance .

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

management believes that adequate provisions have been made for any adjustments that may result from tax examinations .
however , the outcome of tax audits cannot be predicted with certainty .
if any issues addressed in the company 2019s tax audits are resolved in a manner not consistent with management 2019s expectations , the company could be required to adjust its provision for income taxes in the period such resolution occurs .

liquidity and capital resources the following table presents selected financial information and statistics as of and for the years ended september 29 , 2012 , september 24 , 2011 , and september 25 , 2010 ( in millions ) : .

as of september 29 , 2012 , the company had $ 121.3 billion in cash , cash equivalents and marketable securities , an increase of $ 39.7 billion or 49% ( 49 % ) from september 24 , 2011 .

the principal components of this net increase was the cash generated by operating activities of $ 50.9 billion , which was partially offset by payments for acquisition of property , plant and equipment of $ 8.3 billion , payments for acquisition of intangible assets of $ 1.1 billion and payments of dividends and dividend equivalent rights of $ 2.5 billion .

the company 2019s marketable securities investment portfolio is invested primarily in highly-rated securities and its investment policy generally limits the amount of credit exposure to any one issuer .
the policy requires investments generally to be investment grade with the objective of minimizing the potential risk of principal loss .

as of september 29 , 2012 and september 24 , 2011 , $ 82.6 billion and $ 54.3 billion , respectively , of the company 2019s cash , cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in u.s .
dollar-denominated holdings .
amounts held by foreign subsidiaries are generally subject to u.s .
income taxation on repatriation to the u.s .

income taxation on repatriation to the u.s .
the company believes its existing balances of cash , cash equivalents and marketable securities will be sufficient to satisfy its working capital needs , capital asset purchases , outstanding commitments , common stock repurchases , dividends on its common stock , and other liquidity requirements associated with its existing operations over the next 12 months .

capital assets the company 2019s capital expenditures were $ 10.3 billion during 2012 , consisting of $ 865 million for retail store facilities and $ 9.5 billion for other capital expenditures , including product tooling and manufacturing process

 |
| table | | 2012     | 2011    | 2010
----------------------------------------------- | -------- | ------- | -------
cash cash equivalents and marketable securities | $ 121251 | $ 81570 | $ 51011
accounts receivable net                         | $ 10930  | $ 5369  | $ 5510
inventories                                     | $ 791    | $ 776   | $ 1051
working capital                                 | $ 19111  | $ 17018 | $ 20956
annual operating cash flow                      | $ 50856  | $ 37529 | $ 18595 |


| _id | dd4be05ee |
| title |  |
| text | packaging corporation of america notes to consolidated financial statements ( continued ) december 31 , 2005 9 .
shareholders 2019 equity ( continued ) stockholder received proceeds , net of the underwriting discount , of $ 20.69 per share .
the company did not sell any shares in , or receive any proceeds from , the secondary offering .
concurrent with the closing of the secondary offering on december 21 , 2005 , the company entered into a common stock repurchase agreement with pca holdings llc .

pursuant to the repurchase agreement , the company purchased 4500000 shares of common stock directly from pca holdings llc at the initial price to the public net of the underwriting discount or $ 20.69 per share , the same net price per share received by pca holdings llc in the secondary offering .
these shares were retired on december 21 , 2005 .
10 .

10 .
commitments and contingencies capital commitments the company had authorized capital expenditures of approximately $ 33.1 million and $ 55.2 million as of december 31 , 2005 and 2004 , respectively , in connection with the expansion and replacement of existing facilities and equipment .
operating leases pca leases space for certain of its facilities and cutting rights to approximately 108000 acres of timberland under long-term leases .

the company also leases equipment , primarily vehicles and rolling stock , and other assets under long-term leases of a duration generally of three years .
the minimum lease payments under non-cancelable operating leases with lease terms in excess of one year are as follows : ( in thousands ) .

capital lease obligations were not significant to the accompanying financial statements .
total lease expense , including base rent on all leases and executory costs , such as insurance , taxes , and maintenance , for the years ended december 31 , 2005 , 2004 and 2003 was $ 35.8 million , $ 33.0 million and $ 31.6 million , respectively .
these costs are included in cost of goods sold and selling and administrative expenses.

 |
| table | 2006       | $ 24569
---------- | --------
2007       | 21086
2008       | 14716
2009       | 9801
2010       | 6670
thereafter | 37130
total      | $ 113972 |