| _id | dd4c417e0 |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) market and lease the unused tower space on the broadcast towers ( the economic rights ) .
tv azteca retains title to these towers and is responsible for their operation and maintenance .
the company is entitled to 100% ( 100 % ) of the revenues generated from leases with tenants on the unused space and is responsible for any incremental operating expenses associated with those tenants .

the term of the economic rights agreement is seventy years ; however , tv azteca has the right to purchase , at fair market value , the economic rights from the company at any time during the last fifty years of the agreement .
should tv azteca elect to purchase the economic rights ( in whole or in part ) , it would also be obligated to repay a proportional amount of the loan discussed above at the time of such election .

the company 2019s obligation to pay tv azteca $ 1.5 million annually would also be reduced proportionally .
the company has accounted for the annual payment of $ 1.5 million as a capital lease ( initially recording an asset and a corresponding liability of approximately $ 18.6 million ) .

the capital lease asset and the discount on the note , which aggregate approximately $ 30.2 million , represent the cost to acquire the economic rights and are being amortized over the seventy-year life of the economic rights agreement .
on a quarterly basis , the company assesses the recoverability of its note receivable from tv azteca .

as of december 31 , 2007 and 2006 , the company has assessed the recoverability of the note receivable from tv azteca and concluded that no adjustment to its carrying value is required .
a former executive officer and former director of the company served as a director of tv azteca from december 1999 to february 2006 .
as of december 31 , 2007 and 2006 , the company also had other long-term notes receivable outstanding of approximately $ 4.3 million and $ 11.0 million , respectively .
8 .

8 .
derivative financial instruments the company enters into interest rate protection agreements to manage exposure on the variable rate debt under its credit facilities and to manage variability in cash flows relating to forecasted interest payments .
under these agreements , the company is exposed to credit risk to the extent that a counterparty fails to meet the terms of a contract .
such exposure was limited to the current value of the contract at the time the counterparty fails to perform .

the company believes its contracts as of december 31 , 2007 and 2006 are with credit worthy institutions .

as of december 31 , 2007 and 2006 , the carrying amounts of the company 2019s derivative financial instruments , along with the estimated fair values of the related assets reflected in notes receivable and other long-term assets and ( liabilities ) reflected in other long-term liabilities in the accompanying consolidated balance sheet , are as follows ( in thousands except percentages ) : as of december 31 , 2007 notional amount interest rate term carrying amount and fair value .

 |
| table | as of december 31 2007       | notional amount | interest rate    | term             | carrying amount and fair value
---------------------------- | --------------- | ---------------- | ---------------- | ------------------------------
interest rate swap agreement | $ 150000        | 3.95% ( 3.95 % ) | expiring in 2009 | $ -369 ( 369 )
interest rate swap agreement | 100000          | 4.08% ( 4.08 % ) | expiring in 2010 | -571 ( 571 )
total                        | $ 250000        |                  |                  | $ -940 ( 940 ) |


| _id | dd49818fc |
| title |  |
| text | entergy texas , inc .
management's financial discussion and analysis fuel and purchased power expenses increased primarily due to an increase in power purchases as a result of the purchased power agreements between entergy gulf states louisiana and entergy texas and an increase in the average market prices of purchased power and natural gas , substantially offset by a decrease in deferred fuel expense as a result of decreased recovery from customers of fuel costs .

other regulatory charges increased primarily due to an increase of $ 6.9 million in the recovery of bond expenses related to the securitization bonds .
the recovery became effective july 2007 .
see note 5 to the financial statements for additional information regarding the securitization bonds .
2007 compared to 2006 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges .

following is an analysis of the change in net revenue comparing 2007 to 2006 .
amount ( in millions ) .

the purchased power capacity variance is due to changes in the purchased power capacity costs included in the calculation in 2007 compared to 2006 used to bill generation costs between entergy texas and entergy gulf states louisiana .
the securitization transition charge variance is due to the issuance of securitization bonds .

as discussed above , in june 2007 , egsrf i , a company wholly-owned and consolidated by entergy texas , issued securitization bonds and with the proceeds purchased from entergy texas the transition property , which is the right to recover from customers through a transition charge amounts sufficient to service the securitization bonds .
see note 5 to the financial statements herein for details of the securitization bond issuance .

the volume/weather variance is due to increased electricity usage on billed retail sales , including the effects of more favorable weather in 2007 compared to the same period in 2006 .
the increase is also due to an increase in usage during the unbilled sales period .
retail electricity usage increased a total of 139 gwh in all sectors .
see "critical accounting estimates" below and note 1 to the financial statements for further discussion of the accounting for unbilled revenues .

the transmission revenue variance is due to an increase in rates effective june 2007 and new transmission customers in late 2006 .
the base revenue variance is due to the transition to competition rider that began in march 2006 .
refer to note 2 to the financial statements for further discussion of the rate increase .

gross operating revenues , fuel and purchased power expenses , and other regulatory charges gross operating revenues decreased primarily due to a decrease of $ 179 million in fuel cost recovery revenues due to lower fuel rates and fuel refunds .
the decrease was partially offset by the $ 39 million increase in net revenue described above and an increase of $ 44 million in wholesale revenues , including $ 30 million from the system agreement cost equalization payments from entergy arkansas .

the receipt of such payments is being

 |
| table | | amount ( in millions )
-------------------------------- | ----------------------
2006 net revenue                 | $ 403.3
purchased power capacity         | 13.1
securitization transition charge | 9.9
volume/weather                   | 9.7
transmission revenue             | 6.1
base revenue                     | 2.6
other                            | -2.4 ( 2.4 )
2007 net revenue                 | $ 442.3 |


| _id | dd4b995e0 |
| title |  |
| text | devon energy corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) proved undeveloped reserves the following table presents the changes in our total proved undeveloped reserves during 2011 ( in mmboe ) . .

at december 31 , 2011 , devon had 782 mmboe of proved undeveloped reserves .
this represents a 6% ( 6 % ) decrease as compared to 2010 and represents 26% ( 26 % ) of its total proved reserves .
drilling activities increased devon 2019s proved undeveloped reserves 148 mmboe and resulted in the conversion of 130 mmboe , or 16% ( 16 % ) , of the 2010 proved undeveloped reserves to proved developed reserves .

additionally , revisions other than price decreased devon 2019s proved undeveloped reserves 51 mmboe primarily due to its evaluation of certain u.s .
onshore dry-gas areas , which it does not expect to develop in the next five years .
the largest revisions relate to the dry-gas areas at carthage in east texas and the barnett shale in north texas .
a significant amount of devon 2019s proved undeveloped reserves at the end of 2011 largely related to its jackfish operations .

at december 31 , 2011 and 2010 , devon 2019s jackfish proved undeveloped reserves were 367 mmboe and 396 mmboe , respectively .
development schedules for the jackfish reserves are primarily controlled by the need to keep the processing plants at their 35000 barrel daily facility capacity .
processing plant capacity is controlled by factors such as total steam processing capacity , steam-oil ratios and air quality discharge permits .

as a result , these reserves are classified as proved undeveloped for more than five years .
currently , the development schedule for these reserves extends though the year 2025 .
price revisions 2011 2014reserves decreased 21 mmboe due to lower gas prices and higher oil prices .
the higher oil prices increased devon 2019s canadian royalty burden , which reduced devon 2019s oil reserves .
2010 2014reserves increased 72 mmboe due to higher gas prices , partially offset by the effect of higher oil prices .

the higher oil prices increased devon 2019s canadian royalty burden , which reduced devon 2019s oil reserves .
of the 72 mmboe price revisions , 43 mmboe related to the barnett shale and 22 mmboe related to the rocky mountain area .
2009 2014reserves increased 177 mmboe due to higher oil prices , partially offset by lower gas prices .
the increase in oil reserves primarily related to devon 2019s jackfish thermal heavy oil reserves in canada .

at the end of 2008 , 331 mmboe of reserves related to jackfish were not considered proved .
however , due to higher prices , these reserves were considered proved as of december 31 , 2009 .
significantly lower gas prices caused devon 2019s reserves to decrease 116 mmboe , which primarily related to its u.s .
reserves .

reserves .
revisions other than price total revisions other than price for 2011 primarily related to devon 2019s evaluation of certain dry gas regions noted in the proved undeveloped reserves discussion above .
total revisions other than price for 2010 and 2009 primarily related to devon 2019s drilling and development in the barnett shale.

 |
| table | | u.s . onshore | canada     | north america
-------------------------------------------------- | ------------- | ---------- | -------------
proved undeveloped reserves as of december 31 2010 | 411           | 420        | 831
extensions and discoveries                         | 118           | 30         | 148
revisions due to prices                            | -2 ( 2 )      | -14 ( 14 ) | -16 ( 16 )
revisions other than price                         | -56 ( 56 )    | 5          | -51 ( 51 )
conversion to proved developed reserves            | -68 ( 68 )    | -62 ( 62 ) | -130 ( 130 )
proved undeveloped reserves as of december 31 2011 | 403           | 379        | 782 |


| _id | dd4baa548 |
| title |  |
| text | management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) corporate and other expenses increased slightly during 2013 by $ 3.5 to $ 140.8 compared to 2012 , primarily due to an increase in salaries and related expenses , mainly attributable to higher base salaries , benefits and temporary help , partially offset by lower severance expenses and a decrease in office and general expenses .

liquidity and capital resources cash flow overview the following tables summarize key financial data relating to our liquidity , capital resources and uses of capital. .

1 reflects net income adjusted primarily for depreciation and amortization of fixed assets and intangible assets , amortization of restricted stock and other non-cash compensation , non-cash ( gain ) loss related to early extinguishment of debt , and deferred income taxes .
2 reflects changes in accounts receivable , expenditures billable to clients , other current assets , accounts payable and accrued liabilities .

operating activities net cash provided by operating activities during 2014 was $ 669.5 , which was an improvement of $ 76.6 as compared to 2013 , primarily as a result of an increase in net income , offset by an increase in working capital usage of $ 121.5 .
due to the seasonality of our business , we typically generate cash from working capital in the second half of a year and use cash from working capital in the first half of a year , with the largest impacts in the first and fourth quarters .

our net working capital usage in 2014 was impacted by our media businesses .
net cash provided by operating activities during 2013 was $ 592.9 , which was an increase of $ 235.7 as compared to 2012 , primarily as a result of an improvement in working capital usage of $ 283.6 , offset by a decrease in net income .
the improvement in working capital in 2013 was impacted by our media businesses and an ongoing focus on working capital management at our agencies .

the timing of media buying on behalf of our clients affects our working capital and operating cash flow .
in most of our businesses , our agencies enter into commitments to pay production and media costs on behalf of clients .
to the extent possible we pay production and media charges after we have received funds from our clients .

the amounts involved substantially exceed our revenues and primarily affect the level of accounts receivable , expenditures billable to clients , accounts payable and accrued liabilities .
our assets include both cash received and accounts receivable from clients for these pass-through arrangements , while our liabilities include amounts owed on behalf of clients to media and production suppliers .
our accrued liabilities are also affected by the timing of certain other payments .

for example , while annual cash incentive awards are accrued throughout the year , they are generally paid during the first quarter of the subsequent year .
investing activities net cash used in investing activities during 2014 primarily related to payments for capital expenditures and acquisitions .
capital expenditures of $ 148.7 related primarily to computer hardware and software and leasehold improvements .
we made payments of $ 67.8 related to acquisitions completed during 2014 , net of cash acquired.

 |
| table | cash flow data                                                                           | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012
---------------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile net income to net cashprovided by operating activities1 | $ 831.2                        | $ 598.4                        | $ 697.2
net cash used in working capital b2                                                      | -131.1 ( 131.1 )               | -9.6 ( 9.6 )                   | -293.2 ( 293.2 )
changes in other non-current assets and liabilities using cash                           | -30.6 ( 30.6 )                 | 4.1                            | -46.8 ( 46.8 )
net cash provided by operating activities                                                | $ 669.5                        | $ 592.9                        | $ 357.2
net cash used in investing activities                                                    | -200.8 ( 200.8 )               | -224.5 ( 224.5 )               | -210.2 ( 210.2 )
net cash ( used in ) provided by financing activities                                    | -343.9 ( 343.9 )               | -1212.3 ( 1212.3 )             | 131.3 |


| _id | dd4c03562 |
| title |  |
| text | we , in the normal course of business operations , have issued product warranties related to equipment sales .
also , contracts often contain standard terms and conditions which typically include a warranty and indemnification to the buyer that the goods and services purchased do not infringe on third-party intellectual property rights .
the provision for estimated future costs relating to warranties is not material to the consolidated financial statements .

we do not expect that any sum we may have to pay in connection with guarantees and warranties will have a material adverse effect on our consolidated financial condition , liquidity , or results of operations .
unconditional purchase obligations we are obligated to make future payments under unconditional purchase obligations as summarized below: .

approximately $ 4000 of our unconditional purchase obligations relate to helium purchases , which include crude feedstock supply to multiple helium refining plants in north america as well as refined helium purchases from sources around the world .
as a rare byproduct of natural gas production in the energy sector , these helium sourcing agreements are medium- to long-term and contain take-or-pay provisions .

the refined helium is distributed globally and sold as a merchant gas , primarily under medium-term requirements contracts .
while contract terms in the energy sector are longer than those in merchant , helium is a rare gas used in applications with few or no substitutions because of its unique physical and chemical properties .
approximately $ 330 of our long-term unconditional purchase obligations relate to feedstock supply for numerous hyco ( hydrogen , carbon monoxide , and syngas ) facilities .

the price of feedstock supply is principally related to the price of natural gas .
however , long-term take-or-pay sales contracts to hyco customers are generally matched to the term of the feedstock supply obligations and provide recovery of price increases in the feedstock supply .
due to the matching of most long-term feedstock supply obligations to customer sales contracts , we do not believe these purchase obligations would have a material effect on our financial condition or results of operations .

the unconditional purchase obligations also include other product supply and purchase commitments and electric power and natural gas supply purchase obligations , which are primarily pass-through contracts with our customers .
purchase commitments to spend approximately $ 350 for additional plant and equipment are included in the unconditional purchase obligations in 2017 .

in addition , we have purchase commitments totaling approximately $ 500 in 2017 and 2018 relating to our long-term sale of equipment project for saudi aramco 2019s jazan oil refinery .
18 .
capital stock common stock authorized common stock consists of 300 million shares with a par value of $ 1 per share .
as of 30 september 2016 , 249 million shares were issued , with 217 million outstanding .

on 15 september 2011 , the board of directors authorized the repurchase of up to $ 1000 of our outstanding common stock .
we repurchase shares pursuant to rules 10b5-1 and 10b-18 under the securities exchange act of 1934 , as amended , through repurchase agreements established with several brokers .
we did not purchase any of our outstanding shares during fiscal year 2016 .
at 30 september 2016 , $ 485.3 in share repurchase authorization remains.

 |
| table | 2017       | $ 942
---------- | ------
2018       | 525
2019       | 307
2020       | 298
2021       | 276
thereafter | 2983
total      | $ 5331 |


| _id | dd4b9452c |
| title |  |
| text | entergy corporation and subsidiaries management's financial discussion and analysis annually , beginning in 2006 , if power market prices drop below the ppa prices .
accordingly , because the price is not fixed , the table above does not report power from that plant as sold forward after 2005 .

under the ppas with nypa for the output of power from indian point 3 and fitzpatrick , the non-utility nuclear business is obligated to produce at an average capacity factor of 85% ( 85 % ) with a financial true-up payment to nypa should nypa's cost to purchase power due to an output shortfall be higher than the ppas' price .
the calculation of any true-up payments is based on two two-year periods .

for the first period , which ran through november 20 , 2002 , indian point 3 and fitzpatrick operated at 95% ( 95 % ) and 97% ( 97 % ) , respectively , under the true-up formula .
credits of up to 5% ( 5 % ) reflecting period one generation above 85% ( 85 % ) can be used to offset any output shortfalls in the second period , which runs through the end of the ppas on december 31 , 2004 .

entergy continually monitors industry trends in order to determine whether asset impairments or other losses could result from a decline in value , or cancellation , of merchant power projects , and records provisions for impairments and losses accordingly .
marketing and trading the earnings of entergy's energy commodity services segment are exposed to commodity price market risks primarily through entergy's 50%-owned , unconsolidated investment in entergy-koch .

entergy-koch trading ( ekt ) uses value-at-risk models as one measure of the market risk of a loss in fair value for ekt's natural gas and power trading portfolio .
actual future gains and losses in portfolios will differ from those estimated based upon actual fluctuations in market rates , operating exposures , and the timing thereof , and changes in the portfolio of derivative financial instruments during the year .

to manage its portfolio , ekt enters into various derivative and contractual transactions in accordance with the policy approved by the trading committee of the governing board of entergy-koch .
the trading portfolio consists of physical and financial natural gas and power as well as other energy and weather-related contracts .
these contracts take many forms , including futures , forwards , swaps , and options .

characteristics of ekt's value-at-risk method and the use of that method are as follows : fffd value-at-risk is used in conjunction with stress testing , position reporting , and profit and loss reporting in order to measure and control the risk inherent in the trading and mark-to-market portfolios .
fffd ekt estimates its value-at-risk using a model based on j.p .
morgan's risk metrics methodology combined with a monte carlo simulation approach .

fffd ekt estimates its daily value-at-risk for natural gas and power using a 97.5% ( 97.5 % ) confidence level .
ekt's daily value-at-risk is a measure that indicates that , if prices moved against the positions , the loss in neutralizing the portfolio would not be expected to exceed the calculated value-at-risk .
fffd ekt seeks to limit the daily value-at-risk on any given day to a certain dollar amount approved by the trading committee .

ekt's value-at-risk measures , which it calls daily earnings at risk ( de@r ) , for its trading portfolio were as follows: .

ekt's de@r increased in 2002 compared to 2001 as a result of an increase in the size of the position held and an increase in the volatility of natural gas prices in the latter part of the year .
for all derivative and contractual transactions , ekt is exposed to losses in the event of nonperformance by counterparties to these transactions .
relevant considerations when assessing ekt's credit risk exposure include:

 |
| table | | 2002           | 2001
--------------------------- | -------------- | -------------
de@r at end of period       | $ 15.2 million | $ 5.5 million
average de@r for the period | $ 10.8 million | $ 6.4 million |


| _id | dd4bed3b6 |
| title |  |
| text | purchased scrap metal from third-parties ) that were either divested or permanently closed in december 2014 ( see global rolled products below ) .
intersegment sales for this segment improved 12% ( 12 % ) in 2014 compared with 2013 , principally due to an increase in average realized price , driven by higher regional premiums , and higher demand from the midstream and downstream businesses .

atoi for the primary metals segment decreased $ 439 in 2015 compared with 2014 , primarily caused by both the previously mentioned lower average realized aluminum price and lower energy sales , higher energy costs ( mostly in spain as the 2014 interruptibility rights were more favorable than the 2015 structure ) , and an unfavorable impact related to the curtailment of the s e3o lu eds smelter .
these negative impacts were somewhat offset by net favorable foreign currency movements due to a stronger u.s .

dollar against most major currencies , net productivity improvements , the absence of a write-off of inventory related to the permanent closure of the portovesme , point henry , and massena east smelters ( $ 44 ) , and a lower equity loss related to the joint venture in saudi arabia , including the absence of restart costs for one of the potlines that was previously shut down due to a period of instability .

atoi for this segment climbed $ 614 in 2014 compared with 2013 , principally related to a higher average realized aluminum price ; the previously mentioned energy sales in brazil ; net productivity improvements ; net favorable foreign currency movements due to a stronger u.s .
dollar against all major currencies ; lower costs for carbon and alumina ; and the absence of costs related to a planned maintenance outage in 2013 at a power plant in australia .

these positive impacts were slightly offset by an unfavorable impact associated with the 2013 and 2014 capacity reductions described above , including a write-off of inventory related to the permanent closure of the portovesme , point henry , and massena east smelters ( $ 44 ) , and higher energy costs ( particularly in spain ) , labor , and maintenance .

in 2016 , aluminum production will be approximately 450 kmt lower and third-party sales will reflect the absence of approximately $ 400 both as a result of the 2015 curtailment and closure actions .
also , energy sales in brazil will be negatively impacted by a decline in energy prices , while net productivity improvements are anticipated .
global rolled products .

* generally , average realized price per metric ton of aluminum includes two elements : a ) the price of metal ( the underlying base metal component plus a regional premium 2013 see the footnote to the table in primary metals above for a description of these two components ) , and b ) the conversion price , which represents the incremental price over the metal price component that is associated with converting primary aluminum into sheet and plate .

in this circumstance , the metal price component is a pass- through to this segment 2019s customers with limited exception ( e.g. , fixed-priced contracts , certain regional premiums ) .
this segment represents alcoa 2019s midstream operations and produces aluminum sheet and plate for a variety of end markets .

approximately one-half of the third-party shipments in this segment consist of sheet sold directly to customers in the packaging end market for the production of aluminum cans ( beverage , food , and pet food ) .
seasonal increases in can sheet sales are generally experienced in the second and third quarters of the year .

this segment also includes sheet and plate sold directly to customers and through distributors related to the aerospace , automotive , commercial transportation , building and construction , and industrial products ( mainly used in the production of machinery and equipment and consumer durables ) end markets .
a small portion of this segment also produces aseptic foil for the packaging end market .

while the customer base for flat-rolled products is large , a significant amount of sales of sheet and plate is to a relatively small number of customers .
in this circumstance , the sales and costs and expenses of this segment are transacted in the local currency of the respective operations , which are mostly the u.s .
dollar , the euro , the russian ruble , the brazilian real , and the british pound.

 |
| table | | 2015   | 2014   | 2013
-------------------------------------------------------------- | ------ | ------ | ------
third-party aluminum shipments ( kmt )                         | 1775   | 1964   | 1905
alcoa 2019s average realized price per metric ton of aluminum* | $ 3514 | $ 3743 | $ 3730
third-party sales                                              | $ 6238 | $ 7351 | $ 7106
intersegment sales                                             | 125    | 185    | 178
total sales                                                    | $ 6363 | $ 7536 | $ 7284
atoi                                                           | $ 244  | $ 245  | $ 292 |


| _id | dd4bb1762 |
| title |  |
| text | depending upon our senior unsecured debt ratings .
the facilities require the maintenance of a minimum net worth and a debt to net worth coverage ratio .
at december 31 , 2006 , we were in compliance with these covenants .
the facilities do not include any other financial restrictions , credit rating triggers ( other than rating-dependent pricing ) , or any other provision that could require the posting of collateral .

in addition to our revolving credit facilities , we had $ 150 million in uncommitted lines of credit available , including $ 75 million that expires in march 2007 and $ 75 million expiring in may 2007 .
neither of these lines of credit were used as of december 31 , 2006 .
we must have equivalent credit available under our five-year facilities to draw on these $ 75 million lines .

dividend restrictions 2013 we are subject to certain restrictions related to the payment of cash dividends to our shareholders due to minimum net worth requirements under the credit facilities referred to above .
the amount of retained earnings available for dividends was $ 7.8 billion and $ 6.2 billion at december 31 , 2006 and 2005 , respectively .
we do not expect that these restrictions will have a material adverse effect on our consolidated financial condition , results of operations , or liquidity .

we declared dividends of $ 323 million in 2006 and $ 316 million in 2005 .
shelf registration statement 2013 under a current shelf registration statement , we may issue any combination of debt securities , preferred stock , common stock , or warrants for debt securities or preferred stock in one or more offerings .
at december 31 , 2006 , we had $ 500 million remaining for issuance under the current shelf registration statement .

we have no immediate plans to issue any securities ; however , we routinely consider and evaluate opportunities to replace existing debt or access capital through issuances of debt securities under this shelf registration , and , therefore , we may issue debt securities at any time .
6 .
leases we lease certain locomotives , freight cars , and other property .

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 , 2006 were as follows : millions of dollars operating leases capital leases .

rent expense for operating leases with terms exceeding one month was $ 798 million in 2006 , $ 728 million in 2005 , and $ 651 million in 2004 .
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.

 |
| table | millions of dollars                     | operatingleases | capital leases
--------------------------------------- | --------------- | --------------
2007                                    | $ 624           | $ 180
2008                                    | 546             | 173
2009                                    | 498             | 168
2010                                    | 456             | 148
2011                                    | 419             | 157
later years                             | 2914            | 1090
total minimum lease payments            | $ 5457          | $ 1916
amount representing interest            | n/a             | -680 ( 680 )
present value of minimum lease payments | n/a             | $ 1236 |


| _id | dd4b98d7a |
| title |  |
| text | consolidated results of operations , financial condition , or liquidity ; however , to the extent possible , where unasserted claims are considered probable and where such claims can be reasonably estimated , we have recorded a liability .

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 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 third-party actuaries to assist us in measuring the expense and liability , including unasserted claims .
compensation for work-related accidents is governed by the federal employers 2019 liability act ( fela ) .

under fela , damages are assessed based on a finding of fault through litigation or out-of-court settlements .
our personal injury liability activity was as follows : millions of dollars 2006 2005 2004 .

our personal injury liability is discounted to present value using applicable u.s .
treasury rates .
approximately 87% ( 87 % ) of the recorded liability related to asserted claims , and approximately 13% ( 13 % ) related to unasserted claims .
personal injury accruals were higher in 2004 due to a 1998 crossing accident verdict upheld in 2004 and a 2004 derailment near san antonio .

asbestos 2013 we are a defendant in a number of lawsuits in which current and former employees allege exposure to asbestos .
additionally , we have received claims for asbestos exposure that have not been litigated .
the claims and lawsuits ( collectively referred to as 201cclaims 201d ) allege occupational illness resulting from exposure to asbestos- containing products .
in most cases , the claimants do not have credible medical evidence of physical impairment resulting from the alleged exposures .

additionally , most claims filed against us do not specify an amount of alleged damages .
during 2004 , we engaged a third party with extensive experience in estimating resolution costs for asbestos- related claims to assist us in assessing the number and value of these unasserted claims through 2034 , based on our average claims experience over a multi-year period .
as a result , we increased our liability in 2004 for asbestos- related claims in the fourth quarter of 2004 .

the liability for resolving both asserted and unasserted claims was based on the following assumptions : 2022 the number of future claims received would be consistent with historical averages .
2022 the number of claims filed against us will decline each year .
2022 the average settlement values for asserted and unasserted claims will be equivalent to historical averages .
2022 the percentage of claims dismissed in the future will be equivalent to historical averages.

 |
| table | millions of dollars                           | 2006         | 2005         | 2004
--------------------------------------------- | ------------ | ------------ | ------------
beginning balance                             | $ 619        | $ 639        | $ 619
accruals                                      | 240          | 247          | 288
payments                                      | -228 ( 228 ) | -267 ( 267 ) | -268 ( 268 )
ending balance at december 31                 | $ 631        | $ 619        | $ 639
current portion ending balance at december 31 | $ 233        | $ 274        | $ 274 |


| _id | dd496e0d6 |
| title |  |
| text | the following table presents var with respect to our trading activities , as measured by our var methodology for the periods indicated : value-at-risk .

we back-test the estimated one-day var on a daily basis .
this information is reviewed and used to confirm that all relevant trading positions are properly modeled .
for the years ended december 31 , 2008 and 2007 , we did not experience any actual trading losses in excess of our end-of-day var estimate .

asset and liability management activities the primary objective of asset and liability management is to provide sustainable and growing net interest revenue , or nir , under varying economic environments , while protecting the economic values of our balance sheet assets and liabilities from the adverse effects of changes in interest rates .
most of our nir is earned from the investment of deposits generated by our core investment servicing and investment management businesses .

we structure our balance sheet assets to generally conform to the characteristics of our balance sheet liabilities , but we manage our overall interest-rate risk position in the context of current and anticipated market conditions and within internally-approved risk guidelines .
our overall interest-rate risk position is maintained within a series of policies approved by the board and guidelines established and monitored by alco .

our global treasury group has responsibility for managing state street 2019s day-to-day interest-rate risk .
to effectively manage the consolidated balance sheet and related nir , global treasury has the authority to take a limited amount of interest-rate risk based on market conditions and its views about the direction of global interest rates over both short-term and long-term time horizons .

global treasury manages our exposure to changes in interest rates on a consolidated basis organized into three regional treasury units , north america , europe and asia/pacific , to reflect the growing , global nature of our exposures and to capture the impact of change in regional market environments on our total risk position .
our investment activities and our use of derivative financial instruments are the primary tools used in managing interest-rate risk .

we invest in financial instruments with currency , repricing , and maturity characteristics we consider appropriate to manage our overall interest-rate risk position .
in addition to on-balance sheet assets , we use certain derivatives , primarily interest-rate swaps , to alter the interest-rate characteristics of specific balance sheet assets or liabilities .
the use of derivatives is subject to alco-approved guidelines .

additional information about our use of derivatives is in note 17 of the notes to consolidated financial statements included in this form 10-k under item 8 .
as a result of growth in our non-u.s .
operations , non-u.s .
dollar denominated customer liabilities are a significant portion of our consolidated balance sheet .
this growth results in exposure to changes in the shape and level of non-u.s .
dollar yield curves , which we include in our consolidated interest-rate risk management process .

because no one individual measure can accurately assess all of our exposures to changes in interest rates , we use several quantitative measures in our assessment of current and potential future exposures to changes in interest rates and their impact on net interest revenue and balance sheet values .
net interest revenue simulation is the primary tool used in our evaluation of the potential range of possible net interest revenue results that could occur under a variety of interest-rate environments .

we also use market valuation and duration analysis to assess changes in the economic value of balance sheet assets and liabilities caused by assumed changes in interest rates .
finally , gap analysis 2014the difference between the amount of balance sheet assets and liabilities re-pricing within a specified time period 2014is used as a measurement of our interest-rate risk position.

 |
| table | years ended december 31 ( inmillions ) | 2008 annual average | 2008 maximum | 2008 minimum | 2008 annual average | 2008 maximum | minimum
-------------------------------------- | ------------------- | ------------ | ------------ | ------------------- | ------------ | -------
foreign exchange products              | $ 1.8               | $ 4.7        | $ .3         | $ 1.8               | $ 4.0        | $ .7
interest-rate products                 | 1.1                 | 2.4          | .6           | 1.4                 | 3.7          | .1 |


| _id | dd49732c0 |
| title |  |
| text | z i m m e r h o l d i n g s , i n c .
a n d s u b s i d i a r i e s 2 0 0 3 f o r m 1 0 - k the following table sets forth the operating profit margin by cost of products sold .
included in cost of product sold are segment for the years ended december 31 , 2003 , losses on foreign exchange hedge contracts , which increased 2002 and 2001 : in 2003 relative to 2002 .
in the fourth quarter , the company reported operating profit as a percent of net sales of percent of net sales 47.1 percent for asia pacific. .

operating profit for the americas as a percentage of net sales increased to 48.3 percent in 2002 from 47.4 percent in year ended december 31 , 2003 2001 , reflecting improved gross profit margins due to higher compared to year ended december 31 , 2002 average selling prices and increased sales of higher margin operating profit for the americas as a percentage of net products , and lower selling expenses as a percent of sales sales increased due to improved gross margins driven by due to lower costs

gross margins driven by due to lower costs associated with the u.s .

distributor higher average selling prices and increased sales of higher network .
the americas continued to invest in strategic margin products , leveraged operating expenses and the initiatives such as mis technologies , field sales personnel , favorable impact of the change in accounting principle for medical education programs and new product launches .
instruments .

instruments .
the change in accounting principle for operating profit for asia pacific as a percentage of net instruments increased operating profit by 1.7 percentage sales increased to 46.1 percent in 2002 from 45.4 percent points .
with respect to sales growth , increased zimmer in 2001 .

this increase reflects lower selling , general and standalone average selling prices of 4 percent in 2003 and administrative expenses as a percent of sales in japan as favorable effects of volume and mix , 15 percent increase in a result of a sales force and dealer reorganization , partially 2003 , represent the most significant factors in improved offset by lower gross profit margins as a result of lower yen operating profit in the americas .
as reconstructive implant hedge gains compared to 2001 .

sales grow at a higher rate than trauma and orthopaedic operating profit for europe as a percentage of net sales surgical products , operating profit margins generally tend to increased to 24.4 percent in 2002 from 19.5 percent in 2001 , improve since reconstructive product sales generally earn due to improved gross profit margins as a result of higher higher gross margins .

this was the case in 2003 , with zimmer average selling prices and favorable product and country mix , standalone reconstructive implant sales growth of 22 percent the leveraging of sales growth in europe on controlled as compared with total zimmer standalone sales growth of increases in operating expenses and improved efficiency 19 percent .

in the fourth quarter , the company reported in the utilization of instruments ( more frequent use of operating profit as a percent of net sales of 50.4 percent for instruments resulted in fewer placements and less expense ) .
the americas .

the americas .
operating profit for europe as a percentage of net sales liquidity and capital resources increased due to improved gross profit margins driven by cash flows provided by operations were $ 494.8 million higher zimmer standalone average selling prices and in 2003 , compared with $ 220.2 million in 2002 .

the principal favorable product and country mix , leveraged operating source of cash was net earnings before cumulative effect of expenses and the favorable impact of the change in change in accounting principle of $ 291.2 million .
non-cash accounting principle for instruments .
the change in expenses for the period included depreciation and accounting for instruments increased operating profit by amortization expense of $ 103.3 million , centerpulse inventory 1.4 percentage points .

increases in zimmer standalone step-up of $ 42.7 million and centerpulse in-process research average selling prices in europe of 2 percent in 2003 and the and development write-offs of $ 11.2 million .
working capital effect of volume and mix , 19 percent increase in 2003 , were management , together with the collection of $ 20.0 million of the key factors in improved operating profit .

also cash related to centerpulse tax loss carryforwards , contributing to the improvement was significantly lower contributed $ 80.4 million to operating cash flow .
growth in operating expenses .
in the fourth quarter , the working capital continues to be a key management focus .
company reported operating profit as a percent of net sales at december 31 , 2003 , the company had 62 days of sales of 24.7 percent for europe .

outstanding in accounts receivable , unfavorable to the prior operating profit for asia pacific as a percentage of year by 10 days .

acquired centerpulse businesses had a net sales decreased primarily due to less favorable rates on negative impact of 10 days , due to centerpulse 2019s business hedge contracts during the year compared to the prior year , mix which has a greater proportion of european revenue with partially offset by increased zimmer standalone average payment terms generally longer than those in the u.s .
at selling prices and leveraged operating expenses .

the change december 31 , 2003 , the company had 232 days of inventory in accounting for instruments had an immaterial effect on on hand compared to 247 days reported at the end of 2002 .
operating profit for asia pacific .
increases in zimmer the reduction was principally due to improved inventory standalone average selling prices in asia pacific of 1 percent management and the acquired dental and spinal businesses and volume and mix improvements of 4 percent in 2003 carrying fewer days of inventory .

contributed modest improvement but was offset by higher

 |
| table | year ended december 31, | 2003             | 2002             | 2001
----------------------- | ---------------- | ---------------- | ----------------
americas                | 51.2% ( 51.2 % ) | 48.3% ( 48.3 % ) | 47.4% ( 47.4 % )
europe                  | 26.3             | 24.4             | 19.5
asia pacific            | 45.3             | 46.1             | 45.4 |


| _id | dd4ba299c |
| title |  |
| text | latin american investments during 2009 , the company acquired a land parcel located in rio clara , brazil through a newly formed consolidated joint venture in which the company has a 70% ( 70 % ) controlling ownership interest for a purchase price of 3.3 million brazilian reals ( approximately usd $ 1.5 million ) .
this parcel will be developed into a 48000 square foot retail shopping center .

additionally , during 2009 , the company acquired a land parcel located in san luis potosi , mexico , through an unconsolidated joint venture in which the company has a noncontrolling interest , for an aggregate purchase price of approximately $ 0.8 million .
the company recognized equity in income from its unconsolidated mexican investments in real estate joint ventures of approximately $ 7.0 million , $ 17.1 million , and $ 5.2 million during 2009 , 2008 and 2007 , respectively .

the company recognized equity in income from its unconsolidated chilean investments in real estate joint ventures of approximately $ 0.4 million , $ 0.2 and $ 0.1 million during 2009 , 2008 and 2007 , respectively .
the company 2019s revenues from its consolidated mexican subsidiaries aggregated approximately $ 23.4 million , $ 20.3 million , $ 8.5 million during 2009 , 2008 and 2007 , respectively .

the company 2019s revenues from its consolidated brazilian subsidiaries aggregated approximately $ 1.5 million and $ 0.4 million during 2009 and 2008 , respectively .
the company 2019s revenues from its consolidated chilean subsidiaries aggregated less than $ 100000 during 2009 and 2008 , respectively .
mortgages and other financing receivables during 2009 , the company provided financing to five borrowers for an aggregate amount of approximately $ 8.3 million .

during 2009 , the company received an aggregate of approximately $ 40.4 million which fully paid down the outstanding balance on four mortgage receivables .
as of december 31 , 2009 , the company had 37 loans with total commitments of up to $ 178.9 million , of which approximately $ 131.3 million has been funded .
availability under the company 2019s revolving credit facilities are expected to be sufficient to fund these remaining commitments .

( see note 10 of the notes to consolidated financial statements included in this annual report on form 10-k. ) asset impairments on a continuous basis , management assesses whether there are any indicators , including property operating performance and general market conditions , that the value of the company 2019s assets ( including any related amortizable intangible assets or liabilities ) may be impaired .

to the extent impairment has occurred , the carrying value of the asset would be adjusted to an amount to reflect the estimated fair value of the asset .
during 2009 , economic conditions had continued to experience volatility resulting in further declines in the real estate and equity markets .

year over year increases in capitalization rates , discount rates and vacancies as well as the deterioration of real estate market fundamentals , negatively impacted net operating income and leasing which further contributed to declines in real estate markets in general .

as a result of the volatility and declining market conditions described above , as well as the company 2019s strategy in relation to certain of its non-retail assets , the company recognized non-cash impairment charges during 2009 , aggregating approximately $ 175.1 million , before income tax benefit of approximately $ 22.5 million and noncontrolling interests of approximately $ 1.2 million .
details of these non-cash impairment charges are as follows ( in millions ) : .

( see notes 2 , 6 , 8 , 9 , 10 and 11 of the notes to consolidated financial statements included in this annual report on form 10-k. )

 |
| table | impairment of property carrying values       | $ 50.0
-------------------------------------------- | -------
real estate under development                | 2.1
investments in other real estate investments | 49.2
marketable securities and other investments  | 30.1
investments in real estate joint ventures    | 43.7
total impairment charges                     | $ 175.1 |


| _id | dd4bdd420 |
| title |  |
| text | goodwill is assigned to one or more reporting segments on the date of acquisition .
we evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value , including the associated goodwill .
to determine the fair values , we use the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows .

our cash flow assumptions consider historical and forecasted revenue , operating costs and other relevant factors .
we amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists .
we continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets , including our intangible assets may not be recoverable .

when such events or changes in circumstances occur , we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows .
if the future undiscounted cash flows are less than the carrying amount of these assets , we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets .
we did not recognize any intangible asset impairment charges in fiscal 2012 , 2011 or 2010 .

our intangible assets are amortized over their estimated useful lives of 1 to 13 years .
amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed .
the weighted average useful lives of our intangible assets was as follows : weighted average useful life ( years ) .

software development costs capitalization of software development costs for software to be sold , leased , or otherwise marketed begins upon the establishment of technological feasibility , which is generally the completion of a working prototype that has been certified as having no critical bugs and is a release candidate .
amortization begins once the software is ready for its intended use , generally based on the pattern in which the economic benefits will be consumed .

to date , software development costs incurred between completion of a working prototype and general availability of the related product have not been material .
internal use software we capitalize costs associated with customized internal-use software systems that have reached the application development stage .

such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees , who are directly associated with the development of the applications .
capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose .
income taxes we use the asset and liability method of accounting for income taxes .

under this method , income tax expense is recognized for the amount of taxes payable or refundable for the current year .
in addition , deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities , and for operating losses and tax credit carryforwards .
we record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not .

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

 |
| table | | weighted averageuseful life ( years )
------------------------------------ | -------------------------------------
purchased technology                 | 5
customer contracts and relationships | 10
trademarks                           | 7
acquired rights to use technology    | 9
localization                         | 1
other intangibles                    | 3 |


| _id | dd4c34dec |
| title |  |
| text | notes to consolidated financial statements ( continued ) management performs detailed reviews of its receivables on a monthly and/or quarterly basis to assess the adequacy of the allowances based on historical and current trends and other factors affecting credit losses and to determine if any impairment has occurred .
a receivable is impaired when it is probable that all amounts related to the receivable will not be collected according to the contractual terms of the agreement .

in circumstances where the company is aware of a specific customer 2019s inability to meet its financial obligations , a specific reserve is recorded against amounts due to reduce the net recognized receivable to the amount reasonably expected to be collected .

additions to the allowances for doubtful accounts are maintained through adjustments to the provision for credit losses , which are charged to current period earnings ; amounts determined to be uncollectable are charged directly against the allowances , while amounts recovered on previously charged-off accounts increase the allowances .
net charge-offs include the principal amount of losses charged off as well as charged-off interest and fees .

recovered interest and fees previously charged-off are recorded through the allowances for doubtful accounts and increase the allowances .
finance receivables are assessed for charge- off when an account becomes 120 days past due and are charged-off typically within 60 days of asset repossession .

contract receivables related to equipment leases are generally charged-off when an account becomes 150 days past due , while contract receivables related to franchise finance and van leases are generally charged off up to 180 days past the asset return .
for finance and contract receivables , customer bankruptcies are generally charged-off upon notification that the associated debt is not being reaffirmed or , in any event , no later than 180 days past due .

snap-on does not believe that its trade accounts , finance or contract receivables represent significant concentrations of credit risk because of the diversified portfolio of individual customers and geographical areas .
see note 3 for further information on receivables and allowances for doubtful accounts .
other accrued liabilities : supplemental balance sheet information for 201cother accrued liabilities 201d as of 2012 and 2011 year end is as follows : ( amounts in millions ) 2012 2011 .

inventories : snap-on values its inventory at the lower of cost or market and adjusts for the value of inventory that is estimated to be excess , obsolete or otherwise unmarketable .
snap-on records allowances for excess and obsolete inventory based on historical and estimated future demand and market conditions .
allowances for raw materials are largely based on an analysis of raw material age and actual physical inspection of raw material for fitness for use .

as part of evaluating the adequacy of allowances for work-in-progress and finished goods , management reviews individual product stock-keeping units ( skus ) by product category and product life cycle .
cost adjustments for each product category/product life-cycle state are generally established and maintained based on a combination of historical experience , forecasted sales and promotions , technological obsolescence , inventory age and other actual known conditions and circumstances .

should actual product marketability and raw material fitness for use be affected by conditions that are different from management estimates , further adjustments to inventory allowances may be required .
snap-on adopted the 201clast-in , first-out 201d ( 201clifo 201d ) inventory valuation method in 1973 for its u.s .
locations .
snap-on 2019s u.s .
inventories accounted for on a lifo basis consist of purchased product and inventory manufactured at the company 2019s heritage u.s .

manufacturing facilities ( primarily hand tools and tool storage ) .
as snap-on began acquiring businesses in the 1990 2019s , the company retained the 201cfirst-in , first-out 201d ( 201cfifo 201d ) inventory valuation methodology used by the predecessor businesses prior to their acquisition by snap-on ; the company does not adopt the lifo inventory valuation methodology for new acquisitions .
see note 4 for further information on inventories .
72 snap-on incorporated

 |
| table | ( amounts in millions )                | 2012    | 2011
-------------------------------------- | ------- | -------
income taxes                           | $ 19.6  | $ 11.7
accrued restructuring                  | 7.2     | 8.4
accrued warranty                       | 18.9    | 18.6
deferred subscription revenue          | 24.8    | 24.9
accrued property payroll and other tax | 32.9    | 30.4
accrued selling and promotion expense  | 26.6    | 29.1
other                                  | 117.9   | 132.8
total other accrued liabilities        | $ 247.9 | $ 255.9 |


| _id | dd4b8b29c |
| title |  |
| text | cash flows from operating activities can fluctuate significantly from period to period , as pension funding decisions , tax timing differences and other items can significantly impact cash flows .
in both 2007 and 2006 , the company made discretionary contributions of $ 200 million to its u.s .
qualified pension plan , and in 2005 made discretionary contributions totaling $ 500 million .

in 2007 , cash flows provided by operating activities increased $ 436 million , including an increase in net income of $ 245 million .
since the gain from sale of businesses is included in and increases net income , the pre-tax gain from the sale of the businesses must be subtracted , as shown above , to properly reflect operating cash flows .

the cash proceeds from the sale of the pharmaceuticals business are shown as part of cash from investing activities ; however , when the related taxes are paid they are required to be shown as part of cash provided by operating activities .
thus , operating cash flows for 2007 were penalized due to cash income tax payments of approximately $ 630 million in 2007 that related to the sale of the global branded pharmaceuticals business .

non-pharmaceutical related cash income tax payments were approximately $ 475 million lower than 2006 due to normal timing differences in tax payments , which benefited cash flows .
accounts receivable and inventory increases reduced cash flows in 2007 , but decreased cash flow less than in 2006 , resulting in a year-on-year benefit to cash flows of $ 323 million .

the category 201cother-net 201d in the preceding table reflects changes in other asset and liability accounts , including the impact of cash payments made in connection with 3m 2019s restructuring actions ( note 4 ) .
in 2006 , cash flows provided by operating activities decreased $ 365 million .
this decrease was due in large part to an increase of approximately $ 600 million in tax payments in 2006 compared with 2005 .

the higher tax payments in 2006 primarily related to the company 2019s repatriation of $ 1.7 billion of foreign earnings in the united states pursuant to the provisions of the american jobs creation act of 2004 .
the category 201cother-net 201d in the preceding table reflects changes in other asset and liability accounts , including outstanding liabilities at december 31 , 2006 , related to 3m 2019s restructuring actions ( note 4 ) .
cash flows from investing activities : years ended december 31 .

investments in property , plant and equipment enable growth in diverse markets , helping to meet product demand and increasing manufacturing efficiency .
in 2007 , numerous plants were opened or expanded internationally .

this included two facilities in korea ( respirator manufacturing facility and optical plant ) , an optical plant in poland , industrial adhesives/tapes facilities in both brazil and the philippines , a plant in russia ( corrosion protection , industrial adhesive and tapes , and respirators ) , a plant in china ( optical systems , industrial adhesives and tapes , and personal care ) , an expansion in canada ( construction and home improvement business ) , in addition to investments in india , mexico and

in addition to investments in india , mexico and other countries .

in addition , 3m expanded manufacturing capabilities in the u.s. , including investments in industrial adhesives/tapes and optical .
3m also exited several high-cost underutilized manufacturing facilities and streamlined several supply chains by relocating equipment from one facility to another .
the streamlining work has primarily occurred inside the u.s .
and is in addition to the streamlining achieved through plant construction .

as a result of this increased activity , capital expenditures were $ 1.422 billion in 2007 , an increase of $ 254 million when compared to 2006 .
the company expects capital expenditures to total approximately $ 1.3 billion to $ 1.4 billion in 2008 .
refer to the preceding 201ccapital spending/net property , plant and equipment 201d section for more detail .
refer to note 2 for information on 2007 , 2006 and 2005 acquisitions .
note 2 also provides information on the proceeds from the sale of businesses .

the company is actively considering additional acquisitions , investments and strategic alliances , and from time to time may also divest certain businesses .
purchases of marketable securities and investments and proceeds from sale ( or maturities ) of marketable securities and investments are primarily attributable to asset-backed securities , agency securities , corporate medium-term note securities , auction rate securities and other securities , which are classified as available-for-sale .

refer to note 9 for more details about 3m 2019s diversified marketable securities portfolio , which totaled $ 1.059 billion as of december 31 , 2007 .
purchases of marketable securities , net of sales and maturities , totaled $ 429 million for 2007 and $ 637 million for 2006 .
purchases of investments in 2005 include the purchase of 19% ( 19 % ) of ti&m beteiligungsgesellschaft mbh for

 |
| table | ( millions )                                                                                | 2007             | 2006             | 2005
------------------------------------------------------------------------------------------------ | ---------------- | ---------------- | ----------------
purchases of property plant and equipment ( pp&e )                                               | $ -1422 ( 1422 ) | $ -1168 ( 1168 ) | $ -943 ( 943 )
proceeds from sale of pp&e and other assets                                                      | 103              | 49               | 41
acquisitions net of cash acquired                                                                | -539 ( 539 )     | -888 ( 888 )     | -1293 ( 1293 )
proceeds from sale of businesses                                                                 | 897              | 1209             | 2014
purchases and proceeds from sale or maturities of marketable securities and investments 2014 net | -406 ( 406 )     | -662 ( 662 )     | -46 ( 46 )
net cash used in investing activities                                                            | $ -1367 ( 1367 ) | $ -1460 ( 1460 ) | $ -2241 ( 2241 ) |


| _id | dd4c4b268 |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements 19 .
commitments and contingencies litigation 2014the company periodically becomes involved in various claims , lawsuits and proceedings that are incidental to its business .

in the opinion of management , after consultation with counsel , there are no matters currently pending that would , in the event of an adverse outcome , materially impact the company 2019s consolidated financial position , results of operations or liquidity .

tristar litigation 2014the company was involved in several lawsuits against tristar investors llp and its affiliates ( 201ctristar 201d ) in various states regarding single tower sites where tristar had taken land interests under the company 2019s owned or managed sites and the company believes tristar induced the landowner to breach obligations to the company .

in addition , on february 16 , 2012 , tristar brought a federal action against the company in the united states district court for the northern district of texas ( the 201cdistrict court 201d ) , in which tristar principally alleged that the company made misrepresentations to landowners when competing with tristar for land under the company 2019s owned or managed sites .

on january 22 , 2013 , the company filed an amended answer and counterclaim against tristar and certain of its employees , denying tristar 2019s claims and asserting that tristar engaged in a pattern of unlawful activity , including : ( i ) entering into agreements not to compete for land under certain towers ; and ( ii ) making widespread misrepresentations to landowners regarding both tristar and the company .

pursuant to a settlement agreement dated july 9 , 2014 , all pending state and federal actions between the company and tristar were dismissed with prejudice and without payment of damages .
lease obligations 2014the company leases certain land , office and tower space under operating leases that expire over various terms .
many of the leases contain renewal options with specified increases in lease payments upon exercise of the renewal option .

escalation clauses present in operating leases , excluding those tied to cpi or other inflation-based indices , are recognized on a straight-line basis over the non-cancellable term of the leases .

future minimum rental payments under non-cancellable operating leases include payments for certain renewal periods at the company 2019s option because failure to renew could result in a loss of the applicable communications sites and related revenues from tenant leases , thereby making it reasonably assured that the company will renew the leases .
such payments at december 31 , 2014 are as follows ( in thousands ) : year ending december 31 .

aggregate rent expense ( including the effect of straight-line rent expense ) under operating leases for the years ended december 31 , 2014 , 2013 and 2012 approximated $ 655.0 million , $ 495.2 million and $ 419.0 million , respectively.

 |
| table | 2015       | $ 574438
---------- | ---------
2016       | 553864
2017       | 538405
2018       | 519034
2019       | 502847
thereafter | 4214600
total      | $ 6903188 |


| _id | dd4bb77ca |
| title |  |
| text | jpmorgan chase & co./2010 annual report 219 note 13 2013 securities financing activities jpmorgan chase enters into resale agreements , repurchase agreements , securities borrowed transactions and securities loaned transactions ( collectively , 201csecurities financing agree- ments 201d ) primarily to finance the firm 2019s inventory positions , ac- quire securities to cover short positions , accommodate customers 2019 financing needs , and settle other securities obligations .

securities financing agreements are treated as collateralized financings on the firm 2019s consolidated balance sheets .
resale and repurchase agreements are generally carried at the amounts at which the securities will be subsequently sold or repurchased , plus accrued interest .
securities borrowed and securities loaned transactions are generally carried at the amount of cash collateral advanced or received .

where appropriate under applicable ac- counting guidance , resale and repurchase agreements with the same counterparty are reported on a net basis .
fees received or paid in connection with securities financing agreements are recorded in interest income or interest expense .
the firm has elected the fair value option for certain securities financing agreements .
for a further discussion of the fair value option , see note 4 on pages 187 2013189 of this annual report .

the securities financing agreements for which the fair value option has been elected are reported within securities purchased under resale agreements ; securities loaned or sold under repurchase agreements ; and securities borrowed on the consolidated bal- ance sheets .
generally , for agreements carried at fair value , current-period interest accruals are recorded within interest income and interest expense , with changes in fair value reported in principal transactions revenue .

however , for financial instru- ments containing embedded derivatives that would be separately accounted for in accordance with accounting guidance for hybrid instruments , all changes in fair value , including any interest elements , are reported in principal transactions revenue .
the following table details the firm 2019s securities financing agree- ments , all of which are accounted for as collateralized financings during the periods presented. .

( a ) includes resale agreements of $ 20.3 billion and $ 20.5 billion accounted for at fair value at december 31 , 2010 and 2009 , respectively .
( b ) includes securities borrowed of $ 14.0 billion and $ 7.0 billion accounted for at fair value at december 31 , 2010 and 2009 , respectively .
( c ) includes repurchase agreements of $ 4.1 billion and $ 3.4 billion accounted for at fair value at december 31 , 2010 and 2009 , respectively .

the amounts reported in the table above have been reduced by $ 112.7 billion and $ 121.2 billion at december 31 , 2010 and 2009 , respectively , as a result of agreements in effect that meet the specified conditions for net presentation under applicable accounting guidance .
jpmorgan chase 2019s policy is to take possession , where possible , of securities purchased under resale agreements and of securi- ties borrowed .

the firm monitors the market value of the un- derlying securities that it has received from its counterparties and either requests additional collateral or returns a portion of the collateral when appropriate in light of the market value of the underlying securities .
margin levels are established initially based upon the counterparty and type of collateral and moni- tored on an ongoing basis to protect against declines in collat- eral value in the event of default .

jpmorgan chase typically enters into master netting agreements and other collateral arrangements with its resale agreement and securities bor- rowed counterparties , which provide for the right to liquidate the purchased or borrowed securities in the event of a customer default .

as a result of the firm 2019s credit risk mitigation practices described above on resale and securities borrowed agreements , the firm did not hold any reserves for credit impairment on these agreements as of december 31 , 2010 and 2009 .
for a further discussion of assets pledged and collateral received in securities financing agreements see note 31 on pages 280 2013 281 of this annual report.

 |
| table | december 31 ( in millions )                        | 2010     | 2009
-------------------------------------------------- | -------- | --------
securities purchased under resale agreements ( a ) | $ 222302 | $ 195328
securities borrowed ( b )                          | 123587   | 119630
securities sold under repurchase agreements ( c )  | $ 262722 | $ 245692
securities loaned                                  | 10592    | 7835 |


| _id | dd4baa340 |
| title |  |
| text | $ 25.7 million in cash , including $ 4.2 million in taxes and 1373609 of hep 2019s common units having a fair value of $ 53.5 million .

roadrunner / beeson pipelines transaction also on december 1 , 2009 , hep acquired our two newly constructed pipelines for $ 46.5 million , consisting of a 65- mile , 16-inch crude oil pipeline ( the 201croadrunner pipeline 201d ) that connects our navajo refinery lovington facility to a terminus of centurion pipeline l.p . 2019s pipeline extending between west texas and cushing , oklahoma and a 37- mile , 8-inch crude oil pipeline that connects hep 2019s new mexico crude oil gathering system to our navajo

mexico crude oil gathering system to our navajo refinery lovington facility ( the 201cbeeson pipeline 201d ) .

tulsa west loading racks transaction on august 1 , 2009 , hep acquired from us , certain truck and rail loading/unloading facilities located at our tulsa west facility for $ 17.5 million .
the racks load refined products and lube oils produced at the tulsa west facility onto rail cars and/or tanker trucks .

lovington-artesia pipeline transaction on june 1 , 2009 , hep acquired our newly constructed , 16-inch intermediate pipeline for $ 34.2 million that runs 65 miles from our navajo refinery 2019s crude oil distillation and vacuum facilities in lovington , new mexico to its petroleum refinery located in artesia , new mexico .

slc pipeline joint venture interest on march 1 , 2009 , hep acquired a 25% ( 25 % ) joint venture interest in the slc pipeline , a new 95-mile intrastate pipeline system jointly owned with plains .

the slc pipeline commenced operations effective march 2009 and allows various refineries in the salt lake city area , including our woods cross refinery , to ship crude oil into the salt lake city area from the utah terminus of the frontier pipeline as well as crude oil flowing from wyoming and utah via plains 2019 rocky mountain pipeline .
hep 2019s capitalized joint venture contribution was $ 25.5 million .

rio grande pipeline sale on december 1 , 2009 , hep sold its 70% ( 70 % ) interest in rio grande pipeline company ( 201crio grande 201d ) to a subsidiary of enterprise products partners lp for $ 35 million .
results of operations of rio grande are presented in discontinued operations .
in accounting for this sale , hep recorded a gain of $ 14.5 million and a receivable of $ 2.2 million representing its final distribution from rio grande .

the recorded net asset balance of rio grande at december 1 , 2009 , was $ 22.7 million , consisting of cash of $ 3.1 million , $ 29.9 million in properties and equipment , net and $ 10.3 million in equity , representing bp , plc 2019s 30% ( 30 % ) noncontrolling interest .
the following table provides income statement information related to hep 2019s discontinued operations : year ended december 31 , 2009 ( in thousands ) .

transportation agreements hep serves our refineries under long-term pipeline and terminal , tankage and throughput agreements expiring in 2019 through 2026 .
under these agreements , we pay hep fees to transport , store and throughput volumes of refined product and crude oil on hep 2019s pipeline and terminal , tankage and loading rack facilities that result in minimum annual payments to hep .

under these agreements , the agreed upon tariff rates are subject to annual tariff rate adjustments on july 1 at a rate based upon the percentage change in producer price index ( 201cppi 201d ) or federal energy

 |
| table | | year ended december 31 2009 ( in thousands )
----------------------------------------------------------- | --------------------------------------------
income from discontinued operations before income taxes     | $ 5367
income tax expense                                          | -942 ( 942 )
income from discontinued operations net                     | 4425
gain on sale of discontinued operations before income taxes | 14479
income tax expense                                          | -1978 ( 1978 )
gain on sale of discontinued operations net                 | 12501
income from discontinued operations net                     | $ 16926 |


| _id | dd4bc2d32 |
| title |  |
| text | long-term product offerings include active and index strategies .
our active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile .
we offer two types of active strategies : those that rely primarily on fundamental research and those that utilize primarily quantitative models to drive portfolio construction .

in contrast , index strategies seek to closely track the returns of a corresponding index , generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index .
index strategies include both our non-etf index products and ishares etfs .
althoughmany clients use both active and index strategies , the application of these strategies may differ .

for example , clients may use index products to gain exposure to a market or asset class .
in addition , institutional non-etf index assignments tend to be very large ( multi-billion dollars ) and typically reflect low fee rates .
this has the potential to exaggerate the significance of net flows in institutional index products on blackrock 2019s revenues and earnings .
equity year-end 2015 equity aum totaled $ 2.424 trillion , reflecting net inflows of $ 52.8 billion .

net inflows included $ 78.4 billion and $ 4.2 billion into ishares and active products , respectively .
ishares net inflows were driven by the core series and flows into broad developed market equity exposures , and active net inflows reflected demand for international equities .
ishares and active net inflows were partially offset by non-etf index net outflows of $ 29.8 billion .
blackrock 2019s effective fee rates fluctuate due to changes in aummix .

approximately half of blackrock 2019s equity aum is tied to international markets , including emerging markets , which tend to have higher fee rates than u.s .
equity strategies .
accordingly , fluctuations in international equity markets , which do not consistently move in tandemwith u.s .
markets , may have a greater impact on blackrock 2019s effective equity fee rates and revenues .

fixed income fixed income aum ended 2015 at $ 1.422 trillion , increasing $ 28.7 billion , or 2% ( 2 % ) , from december 31 , 2014 .
the increase in aum reflected $ 76.9 billion in net inflows , partially offset by $ 48.2 billion in net market depreciation and foreign exchange movements .
in 2015 , active net inflows of $ 35.9 billion were diversified across fixed income offerings , with strong flows into our unconstrained , total return and high yield strategies .

flagship funds in these product areas include our unconstrained strategic income opportunities and fixed income strategies funds , with net inflows of $ 7.0 billion and $ 3.7 billion , respectively ; our total return fund with net inflows of $ 2.7 billion ; and our high yield bond fund with net inflows of $ 3.5 billion .
fixed income ishares net inflows of $ 50.3 billion were led by flows into core , corporate and high yield bond funds .

active and ishares net inflows were partially offset by non-etf index net outflows of $ 9.3 billion .
multi-asset class blackrock 2019s multi-asset class teammanages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities , bonds , currencies and commodities , and our extensive risk management capabilities .

investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays .
component changes in multi-asset class aum for 2015 are presented below .
( in millions ) december 31 , 2014 net inflows ( outflows ) acquisition ( 1 ) market change fx impact december 31 , 2015 asset allocation and balanced $ 183032 $ 12926 $ 2014 $ ( 6731 ) $ ( 3391 ) $ 185836 .

( 1 ) amounts represent $ 366 million of aum acquired in the futureadvisor acquisition in october 2015 .
the futureadvisor acquisition amount does not include aum that was held in ishares holdings .
multi-asset class net inflows reflected ongoing institutional demand for our solutions-based advice with $ 17.4 billion of net inflows coming from institutional clients .

defined contribution plans of institutional clients remained a significant driver of flows , and contributed $ 7.3 billion to institutional multi-asset class net new business in 2015 , primarily into target date and target risk product offerings .
retail net outflows of $ 1.3 billion were primarily due to a large single-client transition out of mutual funds into a series of ishares across asset classes .

notwithstanding this transition , retail flows reflected demand for our multi-asset income fund family , which raised $ 4.6 billion in 2015 .
the company 2019s multi-asset class strategies include the following : 2022 asset allocation and balanced products represented 49% ( 49 % ) of multi-asset class aum at year-end , with growth in aum driven by net new business of $ 12.9 billion .

these strategies combine equity , fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget .
in certain cases , these strategies seek to minimize downside risk through diversification , derivatives strategies and tactical asset allocation decisions .
flagship products in this category include our global allocation andmulti-asset income suites.

 |
| table | ( in millions )               | december 312014 | net inflows ( outflows ) | acquisition ( 1 ) | market change    | fx impact          | december 312015
----------------------------- | --------------- | ------------------------ | ----------------- | ---------------- | ------------------ | ---------------
asset allocation and balanced | $ 183032        | $ 12926                  | $ 2014            | $ -6731 ( 6731 ) | $ -3391 ( 3391 )   | $ 185836
target date/risk              | 128611          | 218                      | 2014              | -1308 ( 1308 )   | -1857 ( 1857 )     | 125664
fiduciary                     | 66194           | 3985                     | 2014              | 627              | -6373 ( 6373 )     | 64433
futureadvisor                 | 2014            | 38                       | 366               | -1 ( 1 )         | 2014               | 403
multi-asset                   | $ 377837        | $ 17167                  | $ 366             | $ -7413 ( 7413 ) | $ -11621 ( 11621 ) | $ 376336 |


| _id | dd4c04f66 |
| title |  |
| text | the table below summarizes activity of rsus with performance conditions for the year ended december 31 , shares ( in thousands ) weighted average grant date fair value ( per share ) .

as of december 31 , 2017 , $ 6 million of total unrecognized compensation cost related to the nonvested rsus , with and without performance conditions , is expected to be recognized over the weighted-average remaining life of 1.5 years .
the total fair value of rsus , with and without performance conditions , vested was $ 16 million , $ 14 million and $ 12 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .

if dividends are paid with respect to shares of the company 2019s common stock before the rsus are distributed , the company credits a liability for the value of the dividends that would have been paid if the rsus were shares of company common stock .
when the rsus are distributed , the company pays the participant a lump sum cash payment equal to the value of the dividend equivalents accrued .

the company accrued dividend equivalents totaling less than $ 1 million , $ 1 million and $ 1 million to accumulated deficit in the accompanying consolidated statements of changes in stockholders 2019 equity for the years ended december 31 , 2017 , 2016 and 2015 , respectively .

employee stock purchase plan the company maintains a nonqualified employee stock purchase plan ( the 201cespp 201d ) through which employee participants may use payroll deductions to acquire company common stock at the lesser of 90% ( 90 % ) of the fair market value of the common stock at either the beginning or the end of a three-month purchase period .
on february 15 , 2017 , the board adopted the american water works company , inc .

and its designated subsidiaries 2017 nonqualified employee stock purchase plan , which was approved by stockholders on may 12 , 2017 and took effect on august 5 , 2017 .
the prior plan was terminated as to new purchases of company stock effective august 31 , 2017 .
as of december 31 , 2017 , there were 2.0 million shares of common stock reserved for issuance under the espp .
the espp is considered compensatory .

the espp is considered compensatory .
during the years ended december 31 , 2017 , 2016 and 2015 , the company issued 93 thousand , 93 thousand and 98 thousand shares , respectively , under the espp.

 |
| table | | shares ( in thousands ) | weightedaverage grantdate fair value ( per share )
--------------------------------------- | ----------------------- | --------------------------------------------------
non-vested total as of december 31 2016 | 309                     | $ 55.94
granted                                 | 186                     | 63.10
vested                                  | -204 ( 204 )            | 46.10
forfeited                               | -10 ( 10 )              | 70.50
non-vested total as of december 31 2017 | 281                     | $ 67.33 |


| _id | dd4b986b8 |
| title |  |
| text | as described above , the borrowings are extended on a non-recourse basis .
as such , there is no credit or market risk exposure to us on the assets , and as a result the terms of the amlf permit exclusion of the assets from regulatory leverage and risk-based capital calculations .
the interest rate on the borrowings is set by the federal reserve bank , and we earn net interest revenue by earning a spread on the difference between the yield we earn on the assets and the rate we pay on the borrowings .

for 2008 , we earned net interest revenue associated with this facility of approximately $ 68 million .
separately , we currently maintain a commercial paper program under which we can issue up to $ 3 billion with original maturities of up to 270 days from the date of issue .
at december 31 , 2008 and 2007 , $ 2.59 billion and $ 2.36 billion , respectively , of commercial paper were outstanding .

in addition , state street bank currently has board authority to issue bank notes up to an aggregate of $ 5 billion , including up to $ 2.48 billion of senior notes under the fdic 2019s temporary liquidity guarantee program , instituted by the fdic in october 2008 for qualified senior debt issued through june 30 , 2009 , and up to $ 1 billion of subordinated bank notes ( see note 10 ) .

at december 31 , 2008 and 2007 , no notes payable were outstanding , and at december 31 , 2008 , all $ 5 billion was available for issuance .
state street bank currently maintains a line of credit of cad $ 800 million , or approximately $ 657 million , to support its canadian securities processing operations .
the line of credit has no stated termination date and is cancelable by either party with prior notice .
at december 31 , 2008 , no balance was due on this line of credit .
note 9 .

note 9 .
restructuring charges in december 2008 , we implemented a plan to reduce our expenses from operations and support our long- term growth .
in connection with this plan , we recorded aggregate restructuring charges of $ 306 million in our consolidated statement of income .
the primary component of the plan was an involuntary reduction of approximately 7% ( 7 % ) of our global workforce , which reduction we expect to be substantially completed by the end of the first quarter of 2009 .

other components of the plan included costs related to lease and software license terminations , restructuring of agreements with technology providers and other costs .

of the aggregate restructuring charges of $ 306 million , $ 243 million related to severance , a portion of which will be paid in a lump sum or over a defined period , and a portion of which will provide related benefits and outplacement services for approximately 2100 employees identified for involuntary termination in connection with the plan ; $ 49 million related to future lease obligations and write-offs of capitalized assets , including $ 23 million for impairment of other intangible assets ; $ 10

for impairment of other intangible assets ; $ 10 million of costs associated with information technology and $ 4 million of other restructuring costs .

the severance component included $ 47 million related to accelerated vesting of equity-based compensation .
in december 2008 , approximately 620 employees were involuntarily terminated and left state street .
the following table presents the activity in the related balance sheet reserve for 2008 .
( in millions ) severance lease and write-offs information technology other total .

 |
| table | ( in millions )             | severance  | lease and asset write-offs | information technology | other    | total
--------------------------- | ---------- | -------------------------- | ---------------------- | -------- | ----------
initial accrual             | $ 250      | $ 42                       | $ 10                   | $ 4      | $ 306
payments and adjustments    | -20 ( 20 ) | -25 ( 25 )                 | -10 ( 10 )             | -1 ( 1 ) | -56 ( 56 )
balance at december 31 2008 | $ 230      | $ 17                       | 2014                   | $ 3      | $ 250 |


| _id | dd4c41a88 |
| title |  |
| text | part ii item 5 .
market for registrant 2019s common equity and related stockholder matters recent sales of unregistered securities during the fourth quarter of 2003 , aes issued an aggregated of 20.2 million shares of its common stock in exchange for $ 20 million aggregate principal amount of its senior notes .
the shares were issued without registration in reliance upon section 3 ( a ) ( 9 ) under the securities act of 1933 .

market information our common stock is currently traded on the new york stock exchange ( 2018 2018nyse 2019 2019 ) under the symbol 2018 2018aes . 2019 2019 the following tables set forth the high and low sale prices for our common stock as reported by the nyse for the periods indicated .
price range of common stock .

holders as of march 3 , 2004 , there were 9026 record holders of our common stock , par value $ 0.01 per share .
dividends under the terms of our senior secured credit facilities , which we entered into with a commercial bank syndicate , we are not allowed to pay cash dividends .

in addition , under the terms of a guaranty we provided to the utility customer in connection with the aes thames project , we are precluded from paying cash dividends on our common stock if we do not meet certain net worth and liquidity tests .
our project subsidiaries 2019 ability to declare and pay cash dividends to us is subject to certain limitations contained in the project loans , governmental provisions and other agreements that our project subsidiaries are subject to .

see item 12 ( d ) of this form 10-k for information regarding securities authorized for issuance under equity compensation plans.

 |
| table | 2003 first quarter | high $ 4.04 | low $ 2.72 | 2002 first quarter | high $ 17.84 | low $ 4.11
------------------ | ----------- | ---------- | ------------------ | ------------ | ----------
second quarter     | 8.37        | 3.75       | second quarter     | 9.17         | 3.55
third quarter      | 7.70        | 5.91       | third quarter      | 4.61         | 1.56
fourth quarter     | 9.50        | 7.57       | fourth quarter     | 3.57         | 0.95 |


| _id | dd4ba3126 |
| title |  |
| text | 2022 expand client relationships - the overall market we serve continues to gravitate beyond single-application purchases to multi-solution partnerships .
as the market dynamics shift , we expect our clients and prospects to rely more on our multidimensional service offerings .
our leveraged solutions and processing expertise can produce meaningful value and cost savings for our clients through more efficient operating processes , improved service quality and convenience for our clients' customers .

2022 build global diversification - we continue to deploy resources in global markets where we expect to achieve meaningful scale .
revenues by segment the table below summarizes our revenues by reporting segment ( in millions ) : .

integrated financial solutions ( "ifs" ) the ifs segment is focused primarily on serving north american regional and community bank and savings institutions for transaction and account processing , payment solutions , channel solutions , digital channels , fraud , risk management and compliance solutions , lending and wealth and retirement solutions , and corporate liquidity , capitalizing on the continuing trend to outsource these solutions .

clients in this segment include regional and community banks , credit unions and commercial lenders , as well as government institutions , merchants and other commercial organizations .
these markets are primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenues .

the predictable nature of cash flows generated from this segment provides opportunities for further investments in innovation , integration , information and security , and compliance in a cost-effective manner .
our solutions in this segment include : 2022 core processing and ancillary applications .

our core processing software applications are designed to run banking processes for our financial institution clients , including deposit and lending systems , customer management , and other central management systems , serving as the system of record for processed activity .
our diverse selection of market- focused core systems enables fis to compete effectively in a wide range of markets .

we also offer a number of services that are ancillary to the primary applications listed above , including branch automation , back-office support systems and compliance support .
2022 digital solutions , including internet , mobile and ebanking .

our comprehensive suite of retail delivery applications enables financial institutions to integrate and streamline customer-facing operations and back-office processes , thereby improving customer interaction across all channels ( e.g. , branch offices , internet , atm , mobile , call centers ) .

fis' focus on consumer access has driven significant market innovation in this area , with multi-channel and multi-host solutions and a strategy that provides tight integration of services and a seamless customer experience .
fis is a leader in mobile banking solutions and electronic banking enabling clients to manage banking and payments through the internet , mobile devices , accounting software and telephone .

our corporate electronic banking solutions provide commercial treasury capabilities including cash management services and multi-bank collection and disbursement services that address the specialized needs of corporate clients .
fis systems provide full accounting and reconciliation for such transactions , serving also as the system of record.

 |
| table | | 2017   | 2016   | 2015
--------------------------- | ------ | ------ | ------
ifs                         | $ 4630 | $ 4525 | $ 3809
gfs                         | 4138   | 4250   | 2361
corporate and other         | 355    | 466    | 426
total consolidated revenues | $ 9123 | $ 9241 | $ 6596 |