| _id | dd4ba0b10 |
| title |  |
| text | 10-k altria ar release tuesday , february 27 , 2018 10:00pm andra design llc performance stock units : in january 2017 , altria group , inc .
granted an aggregate of 187886 performance stock units to eligible employees .
the payout of the performance stock units requires the achievement of certain performance measures , which were predetermined at the time of grant , over a three-year performance cycle .

these performance measures consist of altria group , inc . 2019s adjusted diluted earnings per share ( 201ceps 201d ) compounded annual growth rate and altria group , inc . 2019s total shareholder return relative to a predetermined peer group .
the performance stock units are also subject to forfeiture if certain employment conditions are not met .
at december 31 , 2017 , altria group , inc .

at december 31 , 2017 , altria group , inc .
had 170755 performance stock units remaining , with a weighted-average grant date fair value of $ 70.39 per performance stock unit .
the fair value of the performance stock units at the date of grant , net of estimated forfeitures , is amortized to expense over the performance period .
altria group , inc .
recorded pre-tax compensation expense related to performance stock units for the year ended december 31 , 2017 of $ 6 million .

the unamortized compensation expense related to altria group , inc . 2019s performance stock units was $ 7 million at december 31 , 2017 .
altria group , inc .
did not grant any performance stock units during 2016 and 2015 .
note 12 .
earnings per share basic and diluted eps were calculated using the following: .

net earnings attributable to altria group , inc .
$ 10222 $ 14239 $ 5241 less : distributed and undistributed earnings attributable to share-based awards ( 14 ) ( 24 ) ( 10 ) earnings for basic and diluted eps $ 10208 $ 14215 $ 5231 weighted-average shares for basic and diluted eps 1921 1952 1961

 |
| table | ( in millions )                                                                  | for the years ended december 31 , 2017 | for the years ended december 31 , 2016 | for the years ended december 31 , 2015
-------------------------------------------------------------------------------- | -------------------------------------- | -------------------------------------- | --------------------------------------
net earnings attributable to altria group inc .                                  | $ 10222                                | $ 14239                                | $ 5241
less : distributed and undistributed earnings attributable to share-based awards | -14 ( 14 )                             | -24 ( 24 )                             | -10 ( 10 )
earnings for basic and diluted eps                                               | $ 10208                                | $ 14215                                | $ 5231
weighted-average shares for basic and diluted eps                                | 1921                                   | 1952                                   | 1961 |


| _id | dd4bce7a4 |
| title |  |
| text | of global business , there are many transactions and calculations where the ultimate tax outcome is uncertain .
some of these uncertainties arise as a consequence of cost reimbursement arrangements among related entities .
although the company believes its estimates are reasonable , no assurance can be given that the final tax outcome of these matters will not be different than that which is reflected in the historical income tax provisions and accruals .

such differences could have a material impact on the company 2019s income tax provision and operating results in the period in which such determination is made .
on november 4 , 2007 ( the first day of its 2008 fiscal year ) , the company adopted new accounting principles on accounting for uncertain tax positions .

these principles require companies to determine whether it is 201cmore likely than not 201d that a tax position will be sustained upon examination by the appropriate taxing authorities before any benefit can be recorded in the financial statements .
an uncertain income tax position will not be recognized if it has less than a 50% ( 50 % ) likelihood of being sustained .
there were no changes to the company 2019s liabilities for uncertain tax positions as a result of the adoption of these provisions .

as of october 30 , 2010 and october 31 , 2009 , the company had a liability of $ 18.4 million and $ 18.2 million , respectively , for gross unrealized tax benefits , all of which , if settled in the company 2019s favor , would lower the company 2019s effective tax rate in the period recorded .
in addition , as of october 30 , 2010 and october 31 , 2009 , the company had a liability of approximately $ 9.8 million and $ 8.0 million , respectively , for interest and penalties .

the total liability as of october 30 , 2010 and october 31 , 2009 of $ 28.3 million and $ 26.2 million , respectively , for uncertain tax positions is classified as non-current , and is included in other non-current liabilities , because the company believes that the ultimate payment or settlement of these liabilities will not occur within the next twelve months .
prior to the adoption of these provisions , these amounts were included in current income tax payable .

the company includes interest and penalties related to unrecognized tax benefits within the provision for taxes in the condensed consolidated statements of income , and as a result , no change in classification was made upon adopting these provisions .
the condensed consolidated statements of income for fiscal years 2010 , 2009 and 2008 include $ 1.8 million , $ 1.7 million and $ 1.3 million , respectively , of interest and penalties related to these uncertain tax positions .

due to the complexity associated with its tax uncertainties , the company cannot make a reasonably reliable estimate as to the period in which it expects to settle the liabilities associated with these uncertain tax positions .
the following table summarizes the changes in the total amounts of uncertain tax positions for fiscal 2008 through fiscal 2010. .

fiscal years 2004 and 2005 irs examination during the fourth quarter of fiscal 2007 , the irs completed its field examination of the company 2019s fiscal years 2004 and 2005 .
on january 2 , 2008 , the irs issued its report for fiscal 2004 and 2005 , which included proposed adjustments related to these two fiscal years .
the company has recorded taxes and penalties related to certain of these proposed adjustments .
there are four items with an additional potential total tax liability of $ 46 million .

the company has concluded , based on discussions with its tax advisors , that these four items are not likely to result in any additional tax liability .
therefore , the company has not recorded any additional tax liability for these items and is appealing these proposed adjustments through the normal processes for the resolution of differences between the irs and taxpayers .
the company 2019s initial meetings with the appellate division of the irs were held during fiscal analog devices , inc .

notes to consolidated financial statements 2014 ( continued )

 |
| table | balance november 3 2007             | $ 9889
----------------------------------- | -------
additions for tax positions of 2008 | 3861
balance november 1 2008             | 13750
additions for tax positions of 2009 | 4411
balance october 31 2009             | 18161
additions for tax positions of 2010 | 286
balance october 30 2010             | $ 18447 |


| _id | dd4c2d40c |
| title |  |
| text | notes to consolidated financial statements j.p .
morgan chase & co .
98 j.p .
morgan chase & co .
/ 2003 annual report securities financing activities jpmorgan chase enters into resale agreements , repurchase agreements , securities borrowed transactions and securities loaned transactions primarily to finance the firm 2019s inventory positions , acquire securities to cover short positions and settle other securities obligations .

the firm also enters into these transactions to accommodate customers 2019 needs .
securities purchased under resale agreements ( 201cresale agreements 201d ) and securities sold under repurchase agreements ( 201crepurchase agreements 201d ) are generally treated as collateralized financing transactions and are carried on the consolidated bal- ance sheet at the amounts the securities will be subsequently sold or repurchased , plus accrued interest .

where appropriate , resale and repurchase agreements with the same counterparty are reported on a net basis in accordance with fin 41 .
jpmorgan chase takes possession of securities purchased under resale agreements .
on a daily basis , jpmorgan chase monitors the market value of the underlying collateral received from its counterparties , consisting primarily of u.s .
and non-u.s .
govern- ment and agency securities , and requests additional collateral from its counterparties when necessary .

similar transactions that do not meet the sfas 140 definition of a repurchase agreement are accounted for as 201cbuys 201d and 201csells 201d rather than financing transactions .
these transactions are accounted for as a purchase ( sale ) of the underlying securities with a forward obligation to sell ( purchase ) the securities .

the forward purchase ( sale ) obligation , a derivative , is recorded on the consolidated balance sheet at its fair value , with changes in fair value recorded in trading revenue .
notional amounts of these transactions accounted for as purchases under sfas 140 were $ 15 billion and $ 8 billion at december 31 , 2003 and 2002 , respectively .
notional amounts of these transactions accounted for as sales under sfas 140 were $ 8 billion and $ 13 billion at december 31 , 2003 and 2002 , respectively .

based on the short-term duration of these contracts , the unrealized gain or loss is insignificant .
securities borrowed and securities lent are recorded at the amount of cash collateral advanced or received .
securities bor- rowed consist primarily of government and equity securities .
jpmorgan chase monitors the market value of the securities borrowed and lent on a daily basis and calls for additional col- lateral when appropriate .

fees received or paid are recorded in interest income or interest expense. .

note 10 jpmorgan chase pledges certain financial instruments it owns to collateralize repurchase agreements and other securities financ- ings .
pledged securities that can be sold or repledged by the secured party are identified as financial instruments owned ( pledged to various parties ) on the consolidated balance sheet .
at december 31 , 2003 , the firm had received securities as col- lateral that can be repledged , delivered or otherwise used with a fair value of approximately $ 210 billion .

this collateral was gen- erally obtained under resale or securities-borrowing agreements .
of these securities , approximately $ 197 billion was repledged , delivered or otherwise used , generally as collateral under repur- chase agreements , securities-lending agreements or to cover short sales .
notes to consolidated financial statements j.p .
morgan chase & co .

morgan chase & co .
loans are reported at the principal amount outstanding , net of the allowance for loan losses , unearned income and any net deferred loan fees .
loans held for sale are carried at the lower of aggregate cost or fair value .
loans are classified as 201ctrading 201d for secondary market trading activities where positions are bought and sold to make profits from short-term movements in price .

loans held for trading purposes are included in trading assets and are carried at fair value , with the gains and losses included in trading revenue .
interest income is recognized using the interest method , or on a basis approximating a level rate of return over the term of the loan .
nonaccrual loans are those on which the accrual of interest is discontinued .

loans ( other than certain consumer loans discussed below ) are placed on nonaccrual status immediately if , in the opinion of management , full payment of principal or interest is in doubt , or when principal or interest is 90 days or more past due and collateral , if any , is insufficient to cover prin- cipal and interest .
interest accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income .

in addition , the amortization of net deferred loan fees is suspended .
interest income on nonaccrual loans is recognized only to the extent it is received in cash .
however , where there is doubt regarding the ultimate collectibility of loan principal , all cash thereafter received is applied to reduce the carrying value of the loan .
loans are restored to accrual status only when interest and principal payments are brought current and future payments are reasonably assured .

consumer loans are generally charged to the allowance for loan losses upon reaching specified stages of delinquency , in accor- dance with the federal financial institutions examination council ( 201cffiec 201d ) policy .
for example , credit card loans are charged off at the earlier of 180 days past due or within 60 days from receiving notification of the filing of bankruptcy .
residential mortgage products are generally charged off to net realizable value at 180 days past due .

other consumer products are gener- ally charged off ( to net realizable value if collateralized ) at 120 days past due .
accrued interest on residential mortgage products , automobile financings and certain other consumer loans are accounted for in accordance with the nonaccrual loan policy note 11

 |
| table | december 31 ( in millions )                  | 2003     | 2002
-------------------------------------------- | -------- | --------
securities purchased under resale agreements | $ 62801  | $ 57645
securities borrowed                          | 41834    | 34143
securities sold under repurchase agreements  | $ 105409 | $ 161394
securities loaned                            | 2461     | 1661 |


| _id | dd4bcf794 |
| title |  |
| text | average revenue per car 2010 2009 2008 % (  % ) change 2010 v 2009 % (  % ) change 2009 v 2008 .

agricultural products 2013 higher volume , fuel surcharges , and price improvements increased agricultural freight revenue in 2010 versus 2009 .
increased shipments from the midwest to export ports in the pacific northwest combined with heightened demand in mexico drove higher corn and feed grain shipments in 2010 .
increased corn and feed grain shipments into ethanol plants in california and idaho and continued growth in ethanol shipments also contributed to this increase .

in 2009 , some ethanol plants temporarily ceased operations due to lower ethanol margins , which contributed to the favorable year-over-year comparison .
in addition , strong export demand for u.s .
wheat via the gulf ports increased shipments of wheat and food grains compared to 2009 .
declines in domestic wheat and food shipments partially offset the growth in export shipments .
new business in feed and animal protein shipments also increased agricultural shipments in 2010 compared to 2009 .

lower volume and fuel surcharges decreased agricultural freight revenue in 2009 versus 2008 .
price improvements partially offset these declines .
lower demand in both export and domestic markets led to fewer shipments of corn and feed grains , down 11% ( 11 % ) in 2009 compared to 2008 .
weaker worldwide demand also reduced export shipments of wheat and food grains in 2009 versus 2008 .

automotive 2013 37% ( 37 % ) and 24% ( 24 % ) increases in shipments of finished vehicles and automotive parts in 2010 , respectively , combined with core pricing gains and fuel surcharges , improved automotive freight revenue from relatively weak 2009 levels .

economic conditions in 2009 led to poor auto sales and reduced vehicle production , which in turn reduced shipments of finished vehicles and parts during the declines in shipments of finished vehicles and auto parts and lower fuel surcharges reduced freight revenue in 2009 compared to 2008 .
vehicle shipments were down 35% ( 35 % ) and parts were down 24% ( 24 % ) .
core pricing gains partially offset these declines .

these volume declines resulted from economic conditions that reduced sales and vehicle production .
in addition , two major domestic automotive manufacturers declared bankruptcy in the second quarter of 2009 , affecting production levels .
although the federal car allowance rebate system ( the 201ccash for clunkers 201d program ) helped stimulate vehicle sales and shipments in the third quarter of 2009 , production cuts and soft demand throughout the year more than offset the program 2019s benefits .

2010 agricultural revenue 2010 automotive revenue

 |
| table | average revenue per car | 2010   | 2009   | 2008   | % (  % ) change 2010 v 2009 | % (  % ) change 2009 v 2008
----------------------- | ------ | ------ | ------ | --------------------------- | ---------------------------
agricultural            | $ 3286 | $ 3080 | $ 3352 | 7% ( 7 % )                  | ( 8 ) % (  % )
automotive              | 2082   | 1838   | 2017   | 13                          | -9 ( 9 )
chemicals               | 2874   | 2761   | 2818   | 4                           | -2 ( 2 )
energy                  | 1697   | 1543   | 1622   | 10                          | -5 ( 5 )
industrial products     | 2461   | 2388   | 2620   | 3                           | -9 ( 9 )
intermodal              | 974    | 896    | 955    | 9                           | -6 ( 6 )
average                 | $ 1823 | $ 1718 | $ 1848 | 6% ( 6 % )                  | ( 7 ) % (  % ) |


| _id | dd4bddce0 |
| title |  |
| text | westrock company notes to consolidated financial statements fffd ( continued ) the following table summarizes the weighted average life and the allocation to intangible assets recognized in the mps acquisition , excluding goodwill ( in millions ) : weighted avg .
amounts recognized as the acquisition .

none of the intangibles has significant residual value .
we are amortizing the customer relationship intangibles over estimated useful lives ranging from 13 to 16 years based on a straight-line basis because the amortization pattern was not reliably determinable .
star pizza acquisition on march 13 , 2017 , we completed the star pizza acquisition .
the transaction provided us with a leadership position in the fast growing small-run pizza box market and increases our vertical integration .

the purchase price was $ 34.6 million , net of a $ 0.7 million working capital settlement .
we have fully integrated the approximately 22000 tons of containerboard used by star pizza annually .
we have included the financial results of the acquired assets since the date of the acquisition in our corrugated packaging segment .
the purchase price allocation for the acquisition primarily included $ 24.8 million of customer relationship intangible assets and $ 2.2 million of goodwill .

we are amortizing the customer relationship intangibles over 10 years based on a straight-line basis because the amortization pattern was not reliably determinable .
the fair value assigned to goodwill is primarily attributable to buyer-specific synergies expected to arise after the acquisition ( e.g. , enhanced reach of the combined organization and other synergies ) , and the assembled work force .
the goodwill and intangibles are amortizable for income tax purposes .

packaging acquisition on january 19 , 2016 , we completed the packaging acquisition .
the entities acquired provide value-added folding carton and litho-laminated display packaging solutions .
the purchase price was $ 94.1 million , net of cash received of $ 1.7 million , a working capital settlement and a $ 3.5 million escrow receipt in the first quarter of fiscal 2017 .
the transaction is subject to an election under section 338 ( h ) ( 10 ) of the code that increases the u.s .

tax basis in the acquired u.s .
entities .
we believe the transaction has provided us with attractive and complementary customers , markets and facilities .
we have included the financial results of the acquired entities since the date of the acquisition in our consumer packaging segment .

the purchase price allocation for the acquisition primarily included $ 55.0 million of property , plant and equipment , $ 10.5 million of customer relationship intangible assets , $ 9.3 million of goodwill and $ 25.8 million of liabilities , including $ 1.3 million of debt .
we are amortizing the customer relationship intangibles over estimated useful lives ranging from 9 to 15 years based on a straight-line basis because the amortization pattern was not reliably determinable .

the fair value assigned to goodwill is primarily attributable to buyer-specific synergies expected to arise after the acquisition ( e.g. , enhanced reach of the combined organization and other synergies ) , and the assembled work force .
the goodwill and intangibles of the u.s .
entities are amortizable for income tax purposes .
sp fiber on october 1 , 2015 , we completed the sp fiber acquisition in a stock purchase .

the transaction included the acquisition of mills located in dublin , ga and newberg , or , which produce lightweight recycled containerboard and kraft and bag paper .
the newberg mill also produced newsprint .
as part of the transaction , we also acquired sp fiber's 48% ( 48 % ) interest in gps .
gps is a joint venture providing steam to the dublin mill and electricity to georgia power .
the purchase price was $ 278.8 million , net of cash received of $ 9.2 million and a working capital

 |
| table | | weighted avg.life | amountsrecognized as ofthe acquisitiondate
------------------------- | ----------------- | ------------------------------------------
customer relationships    | 14.6              | $ 1008.7
trademarks and tradenames | 3.0               | 15.2
photo library             | 10.0              | 2.5
total                     | 14.4              | $ 1026.4 |


| _id | dd4ba5822 |
| title |  |
| text | the company recognizes the effect of income tax positions only if sustaining those positions is more likely than not .
changes in recognition or measurement are reflected in the period in which a change in judgment occurs .
the company records penalties and interest related to unrecognized tax benefits in income taxes in the company 2019s consolidated statements of income .

changes in accounting principles business combinations and noncontrolling interests on january 1 , 2009 , the company adopted revised principles related to business combinations and noncontrolling interests .
the revised principle on business combinations applies to all transactions or other events in which an entity obtains control over one or more businesses .

it requires an acquirer to recognize the assets acquired , the liabilities assumed , and any noncontrolling interest in the acquiree at the acquisition date , measured at their fair values as of that date .
business combinations achieved in stages require recognition of the identifiable assets and liabilities , as well as the noncontrolling interest in the acquiree , at the full amounts of their fair values when control is obtained .

this revision also changes the requirements for recognizing assets acquired and liabilities assumed arising from contingencies , and requires direct acquisition costs to be expensed .
in addition , it provides certain changes to income tax accounting for business combinations which apply to both new and previously existing business combinations .

in april 2009 , additional guidance was issued which revised certain business combination guidance related to accounting for contingent liabilities assumed in a business combination .
the company has adopted this guidance in conjunction with the adoption of the revised principles related to business combinations .
the adoption of the revised principles related to business combinations has not had a material impact on the consolidated financial statements .

the revised principle related to noncontrolling interests establishes accounting and reporting standards for the noncontrolling interests in a subsidiary and for the deconsolidation of a subsidiary .
the revised principle clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as a separate component of equity in the consolidated statements of financial position .

the revised principle requires retrospective adjustments , for all periods presented , of stockholders 2019 equity and net income for noncontrolling interests .
in addition to these financial reporting changes , the revised principle provides for significant changes in accounting related to changes in ownership of noncontrolling interests .

changes in aon 2019s controlling financial interests in consolidated subsidiaries that do not result in a loss of control are accounted for as equity transactions similar to treasury stock transactions .
if a change in ownership of a consolidated subsidiary results in a loss of control and deconsolidation , any retained ownership interests are remeasured at fair value with the gain or loss reported in net income .

in previous periods , noncontrolling interests for operating subsidiaries were reported in other general expenses in the consolidated statements of income .
prior period amounts have been restated to conform to the current year 2019s presentation .
the principal effect on the prior years 2019 balance sheets related to the adoption of the new guidance related to noncontrolling interests is summarized as follows ( in millions ) : .

the revised principle also requires that net income be adjusted to include the net income attributable to the noncontrolling interests and a new separate caption for net income attributable to aon stockholders be presented in the consolidated statements of income .
the adoption of this new guidance increased net income by $ 16 million and $ 13 million for 2008 and 2007 , respectively .
net

 |
| table | as of december 31                                          | 2008   | 2007
---------------------------------------------------------- | ------ | ------
equity as previously reported                              | $ 5310 | $ 6221
increase for reclassification of non-controlling interests | 105    | 40
equity as adjusted                                         | $ 5415 | $ 6261 |


| _id | dd4975e94 |
| title |  |
| text | the table below details cash capital investments for the years ended december 31 , 2006 , 2005 , and 2004 .
millions of dollars 2006 2005 2004 .

in 2007 , we expect our total capital investments to be approximately $ 3.2 billion , which may include long- term leases .
these investments will be used to maintain track and structures , continue capacity expansions on our main lines in constrained corridors , remove bottlenecks , upgrade and augment equipment to better meet customer needs , build and improve facilities and terminals , and develop and implement new technologies .

we designed these investments to maintain infrastructure for safety , enhance customer service , promote growth , and improve operational fluidity .
we expect to fund our 2007 cash capital investments through cash generated from operations , the sale or lease of various operating and non-operating properties , and cash on hand at december 31 , 2006 .
we expect that these sources will continue to provide sufficient funds to meet our expected capital requirements for 2007 .

for the years ended december 31 , 2006 , 2005 , and 2004 , our ratio of earnings to fixed charges was 4.4 , 2.9 , and 2.1 , respectively .
the increases in 2006 and 2005 were driven by higher net income .
the ratio of earnings to fixed charges was computed on a consolidated basis .
earnings represent income from continuing operations , less equity earnings net of distributions , plus fixed charges and income taxes .

fixed charges represent interest charges , amortization of debt discount , and the estimated amount representing the interest portion of rental charges .
see exhibit 12 for the calculation of the ratio of earnings to fixed charges .

financing activities credit facilities 2013 on december 31 , 2006 , we had $ 2 billion in revolving credit facilities available , including $ 1 billion under a five-year facility expiring in march 2009 and $ 1 billion under a five-year facility expiring in march 2010 ( collectively , the "facilities" ) .
the facilities are designated for general corporate purposes and support the issuance of commercial paper .
neither of the facilities were drawn on in 2006 .

neither of the facilities were drawn on in 2006 .
commitment fees and interest rates payable under the facilities are similar to fees and rates available to comparably rated investment-grade borrowers .
these facilities allow for borrowings at floating rates based on london interbank offered rates , plus a spread , 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 .
dividends 2013 on january 30 , 2007 , we increased the quarterly dividend to $ 0.35 per share , payable beginning on april 2 , 2007 , to shareholders of record on february 28 , 2007 .

we expect to fund the increase in the quarterly dividend through cash generated from operations , the sale or lease of various operating and non-operating properties , and cash on hand at december 31 , 2006 .
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 our credit facilities .
retained earnings available

 |
| table | millions of dollars                | 2006   | 2005   | 2004
---------------------------------- | ------ | ------ | ------
track                              | $ 1487 | $ 1472 | $ 1328
capacity and commercial facilities | 510    | 509    | 347
locomotives and freight cars       | 135    | 98     | 125
other                              | 110    | 90     | 76
total                              | $ 2242 | $ 2169 | $ 1876 |


| _id | dd4c4befc |
| title |  |
| text | entergy corporation and subsidiaries notes to financial statements rate of 2.04% ( 2.04 % ) .
although the principal amount is not due until the date given in the tables above , entergy louisiana investment recovery funding expects to make principal payments on the bonds over the next five years in the amounts of $ 21.7 million for 2017 , $ 22.3 million for 2018 , $ 22.7 million for 2019 , $ 23.2 million for 2020 , and $ 11 million for 2021 .

with the proceeds , entergy louisiana investment recovery funding purchased from entergy louisiana the investment recovery property , which is the right to recover from customers through an investment recovery charge amounts sufficient to service the bonds .
in accordance with the financing order , entergy louisiana will apply the proceeds it received from the sale of the investment recovery property as a reimbursement for previously-incurred investment recovery costs .

the investment recovery property is reflected as a regulatory asset on the consolidated entergy louisiana balance sheet .
the creditors of entergy louisiana do not have recourse to the assets or revenues of entergy louisiana investment recovery funding , including the investment recovery property , and the creditors of entergy louisiana investment recovery funding do not have recourse to the assets or revenues of entergy louisiana .

entergy louisiana has no payment obligations to entergy louisiana investment recovery funding except to remit investment recovery charge collections .

entergy new orleans securitization bonds - hurricane isaac in may 2015 the city council issued a financing order authorizing the issuance of securitization bonds to recover entergy new orleans 2019s hurricane isaac storm restoration costs of $ 31.8 million , including carrying costs , the costs of funding and replenishing the storm recovery reserve in the amount of $ 63.9 million , and approximately $ 3 million of up-front financing costs associated with the securitization .

in july 2015 , entergy new orleans storm recovery funding i , l.l.c. , a company wholly owned and consolidated by entergy new orleans , issued $ 98.7 million of storm cost recovery bonds .
the bonds have a coupon of 2.67% ( 2.67 % ) .

the bonds have a coupon of 2.67% ( 2.67 % ) .
although the principal amount is not due until the date given in the tables above , entergy new orleans storm recovery funding expects to make principal payments on the bonds over the next five years in the amounts of $ 10.6 million for 2017 , $ 11 million for 2018 , $ 11.2 million for 2019 , $ 11.6 million for 2020 , and $ 11.9 million for 2021 .

with the proceeds , entergy new orleans storm recovery funding purchased from entergy new orleans the storm recovery property , which is the right to recover from customers through a storm recovery charge amounts sufficient to service the securitization bonds .
the storm recovery property is reflected as a regulatory asset on the consolidated entergy new orleans balance sheet .

the creditors of entergy new orleans do not have recourse to the assets or revenues of entergy new orleans storm recovery funding , including the storm recovery property , and the creditors of entergy new orleans storm recovery funding do not have recourse to the assets or revenues of entergy new orleans .
entergy new orleans has no payment obligations to entergy new orleans storm recovery funding except to remit storm recovery charge collections .

entergy texas securitization bonds - hurricane rita in april 2007 the puct issued a financing order authorizing the issuance of securitization bonds to recover $ 353 million of entergy texas 2019s hurricane rita reconstruction costs and up to $ 6 million of transaction costs , offset by $ 32 million of related deferred income tax benefits .

in june 2007 , entergy gulf states reconstruction funding i , llc , a company that is now wholly-owned and consolidated by entergy texas , issued $ 329.5 million of senior secured transition bonds ( securitization bonds ) as follows : amount ( in thousands ) .

 |
| table | | amount ( in thousands )
------------------------------------------------- | -----------------------
senior secured transition bonds series a:         |
tranche a-1 ( 5.51% ( 5.51 % ) ) due october 2013 | $ 93500
tranche a-2 ( 5.79% ( 5.79 % ) ) due october 2018 | 121600
tranche a-3 ( 5.93% ( 5.93 % ) ) due june 2022    | 114400
total senior secured transition bonds             | $ 329500 |


| _id | dd4984020 |
| title |  |
| text | pension expense .

( a ) effective in 2016 , the company began to measure the service cost and interest cost components of pension expense by applying spot rates along the yield curve to the relevant projected cash flows , as we believe this provides a better measurement of these costs .
the company has accounted for this as a change in accounting estimate and , accordingly has accounted for it on a prospective basis .
this change does not affect the measurement of the total benefit obligation .
2016 vs .

2016 vs .
2015 pension expense , excluding special items , decreased from the prior year due to the adoption of the spot rate approach which reduced service cost and interest cost , the impact from expected return on assets and demographic gains , partially offset by the impact of the adoption of new mortality tables for our major plans .
special items of $ 7.3 included pension settlement losses of $ 6.4 , special termination benefits of $ 2.0 , and curtailment gains of $ 1.1 .

these resulted primarily from our recent business restructuring and cost reduction actions .
2015 vs .
2014 the decrease in pension expense , excluding special items , was due to the impact from expected return on assets , a 40 bp reduction in the weighted average compensation increase assumption , and lower service cost and interest cost .

the decrease was partially offset by the impact of higher amortization of actuarial losses , which resulted primarily from a 60 bp decrease in weighted average discount rate .
special items of $ 35.2 included pension settlement losses of $ 21.2 , special termination benefits of $ 8.7 , and curtailment losses of $ 5.3 .
these resulted primarily from our recent business restructuring and cost reduction actions .

2017 outlook in 2017 , pension expense , excluding special items , is estimated to be approximately $ 70 to $ 75 , an increase of $ 10 to $ 15 from 2016 , resulting primarily from a decrease in discount rates , offset by favorable asset experience , effects of the versum spin-off and the adoption of new mortality tables .
pension settlement losses of $ 10 to $ 15 are expected , dependent on the timing of retirements .

in 2017 , we expect pension expense to include approximately $ 164 for amortization of actuarial losses compared to $ 121 in 2016 .
net actuarial losses of $ 484 were recognized in accumulated other comprehensive income in 2016 , primarily attributable to lower discount rates and improved mortality projections .
actuarial gains/losses are amortized into pension expense over prospective periods to the extent they are not offset by future gains or losses .

future changes in the discount rate and actual returns on plan assets different from expected returns would impact the actuarial gains/losses and resulting amortization in years beyond 2017 .
during the first quarter of 2017 , the company expects to record a curtailment loss estimated to be $ 5 to $ 10 related to employees transferring to versum .
the loss will be reflected in the results from discontinued operations on the consolidated income statements .

we continue to evaluate opportunities to manage the liabilities associated with our pension plans .
pension funding pension funding includes both contributions to funded plans and benefit payments for unfunded plans , which are primarily non-qualified plans .
with respect to funded plans , our funding policy is that contributions , combined with appreciation and earnings , will be sufficient to pay benefits without creating unnecessary surpluses .

in addition , we make contributions to satisfy all legal funding requirements while managing our capacity to benefit from tax deductions attributable to plan contributions .
with the assistance of third party actuaries , we analyze the liabilities and demographics of each plan , which help guide the level of contributions .
during 2016 and 2015 , our cash contributions to funded plans and benefit payments for unfunded plans were $ 79.3 and $ 137.5 , respectively .

for 2017 , cash contributions to defined benefit plans are estimated to be $ 65 to $ 85 .
the estimate is based on expected contributions to certain international plans and anticipated benefit payments for unfunded plans , which

 |
| table | | 2016           | 2015           | 2014
-------------------------------------------------------------------- | -------------- | -------------- | --------------
pension expense                                                      | $ 68.1         | $ 135.6        | $ 135.9
special terminations settlements and curtailments ( included above ) | 7.3            | 35.2           | 5.8
weighted average discount rate ( a )                                 | 4.1% ( 4.1 % ) | 4.0% ( 4.0 % ) | 4.6% ( 4.6 % )
weighted average expected rate of return on plan assets              | 7.5% ( 7.5 % ) | 7.4% ( 7.4 % ) | 7.7% ( 7.7 % )
weighted average expected rate of compensation increase              | 3.5% ( 3.5 % ) | 3.5% ( 3.5 % ) | 3.9% ( 3.9 % ) |


| _id | dd4c31af2 |
| title |  |
| text | table 46 : allowance for loan and lease losses .

( a ) includes charge-offs of $ 134 million taken pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013 .
the provision for credit losses totaled $ 643 million for 2013 compared to $ 987 million for 2012 .

the primary driver of the decrease to the provision was improved overall credit quality , including improved commercial loan risk factors , lower consumer loan delinquencies and improvements in expected cash flows for our purchased impaired loans .
for 2013 , the provision for commercial lending credit losses decreased by $ 102 million , or 74% ( 74 % ) , from 2012 .
the provision for consumer lending credit losses decreased $ 242 million , or 29% ( 29 % ) , from 2012 .

at december 31 , 2013 , total alll to total nonperforming loans was 117% ( 117 % ) .
the comparable amount for december 31 , 2012 was 124% ( 124 % ) .
these ratios are 72% ( 72 % ) and 79% ( 79 % ) , respectively , when excluding the $ 1.4 billion and $ 1.5 billion , respectively , of alll at december 31 , 2013 and december 31 , 2012 allocated to consumer loans and lines of credit not secured by residential real estate and purchased impaired loans .

we have excluded consumer loans and lines of credit not secured by real estate as they are charged off after 120 to 180 days past due and not placed on nonperforming status .
additionally , we have excluded purchased impaired loans as they are considered performing regardless of their delinquency status as interest is accreted based on our estimate of expected cash flows and additional allowance is recorded when these cash flows are below recorded investment .

see table 35 within this credit risk management section for additional information .
the alll balance increases or decreases across periods in relation to fluctuating risk factors , including asset quality trends , charge-offs and changes in aggregate portfolio balances .

during 2013 , improving asset quality trends , including , but not limited to , delinquency status and improving economic conditions , realization of previously estimated losses through charge-offs , including the impact of alignment with interagency guidance and overall portfolio growth , combined to result in the alll balance declining $ .4 billion , or 11% ( 11 % ) to $ 3.6 billion as of december 31 , 2013 compared to december 31 , 2012 .

see note 7 allowances for loan and lease losses and unfunded loan commitments and letters of credit and note 6 purchased loans in the notes to consolidated financial statements in item 8 of this report regarding changes in the alll and in the allowance for unfunded loan commitments and letters of credit .
operational risk management operational risk is the risk of loss resulting from inadequate or failed internal processes or systems , human factors , or external events .

this includes losses that may arise as a result of non- compliance with laws or regulations , failure to fulfill fiduciary responsibilities , as well as litigation or other legal actions .

operational risk may occur in any of our business activities and manifests itself in various ways , including but not limited to : 2022 transaction processing errors , 2022 unauthorized transactions and fraud by employees or third parties , 2022 material disruption in business activities , 2022 system breaches and misuse of sensitive information , 2022 regulatory or governmental actions , fines or penalties , and 2022 significant legal expenses , judgments or settlements .

pnc 2019s operational risk management is inclusive of technology risk management , compliance and business continuity risk .
operational risk management focuses on balancing business needs , regulatory expectations and risk management priorities through an adaptive and proactive program that is designed to provide a strong governance model , sound and consistent risk management processes and transparent operational risk reporting across the enterprise .

the pnc board determines the strategic approach to operational risk via establishment of the operational risk appetite and appropriate risk management structure .
this includes establishment of risk metrics and limits and a reporting structure to identify , understand and manage operational risks .
executive management has responsibility for operational risk management .

the executive management team is responsible for monitoring significant risks , key controls and related issues through management reporting and a governance structure of risk committees and sub-committees .
within risk management , operational risk management functions are responsible for developing and maintaining the 84 the pnc financial services group , inc .
2013 form 10-k

 |
| table | dollars in millions                                                         | 2013             | 2012
--------------------------------------------------------------------------- | ---------------- | ----------------
january 1                                                                   | $ 4036           | $ 4347
total net charge-offs                                                       | -1077 ( 1077 )   | -1289 ( 1289 )
provision for credit losses                                                 | 643              | 987
net change in allowance for unfunded loan commitments and letters of credit | 8                | -10 ( 10 )
other                                                                       | -1 ( 1 )         | 1
december 31                                                                 | $ 3609           | $ 4036
net charge-offs to average loans ( for the year ended ) ( a )               | .57% ( .57 % )   | .73% ( .73 % )
allowance for loan and lease losses to total loans                          | 1.84             | 2.17
commercial lending net charge-offs                                          | $ -249 ( 249 )   | $ -359 ( 359 )
consumer lending net charge-offs                                            | -828 ( 828 )     | -930 ( 930 )
total net charge-offs                                                       | $ -1077 ( 1077 ) | $ -1289 ( 1289 )
net charge-offs to average loans ( for the year ended )                     |                  |
commercial lending                                                          | .22% ( .22 % )   | .35% ( .35 % )
consumer lending ( a )                                                      | 1.07             | 1.24 |


| _id | dd4c38834 |
| title |  |
| text | entergy corporation and subsidiaries management's financial discussion and analysis other income ( deductions ) changed from $ 47.6 million in 2002 to ( $ 36.0 million ) in 2003 primarily due to a decrease in "miscellaneous - net" as a result of a $ 107.7 million accrual in the second quarter of 2003 for the loss that would be associated with a final , non-appealable decision disallowing abeyed river bend plant costs .

see note 2 to the consolidated financial statements for more details regarding the river bend abeyed plant costs .
the decrease was partially offset by an increase in interest and dividend income as a result of the implementation of sfas 143 .
interest on long-term debt decreased from $ 462.0 million in 2002 to $ 433.5 million in 2003 primarily due to the redemption and refinancing of long-term debt .
non-utility nuclear following are key performance measures for non-utility nuclear: .

2004 compared to 2003 the decrease in earnings for non-utility nuclear from $ 300.8 million to $ 245.0 million was primarily due to the $ 154.5 million net-of-tax cumulative effect of a change in accounting principle that increased earnings in the first quarter of 2003 upon implementation of sfas 143 .
see "critical accounting estimates - sfas 143" below for discussion of the implementation of sfas 143 .

earnings before the cumulative effect of accounting change increased by $ 98.7 million primarily due to the following : 2022 lower operation and maintenance expenses , which decreased from $ 681.8 million in 2003 to $ 595.7 million in 2004 , primarily resulting from charges recorded in 2003 in connection with the voluntary severance program ; 2022 higher revenues , which increased from $ 1.275 billion in 2003 to $ 1.342 billion in 2004 , primarily resulting from higher contract pricing .

the addition of a support services contract for the cooper nuclear station and increased generation in 2004 due to power uprates completed in 2003 and fewer planned and unplanned outages in 2004 also contributed to the higher revenues ; and 2022 miscellaneous income resulting from a reduction in the decommissioning liability for a plant , as discussed in note 8 to the consolidated financial statements .

partially offsetting this increase were the following : 2022 higher income taxes , which increased from $ 88.6 million in 2003 to $ 142.6 million in 2004 ; and 2022 higher depreciation expense , which increased from $ 34.3 million in 2003 to $ 48.9 million in 2004 , due to additions to plant in service .

2003 compared to 2002 the increase in earnings for non-utility nuclear from $ 200.5 million to $ 300.8 million was primarily due to the $ 154.5 million net-of-tax cumulative effect of a change in accounting principle recognized in the first quarter of 2003 upon implementation of sfas 143 .
see "critical accounting estimates - sfas 143" below for discussion of the implementation of sfas 143 .
income before the cumulative effect of accounting change decreased by $ 54.2 million .

the decrease was primarily due to $ 83.0 million ( $ 50.6 million net-of-tax ) of charges recorded in connection with the voluntary severance program .
except for the effect of the voluntary severance program , operation and maintenance expenses in 2003 per mwh of generation were in line with 2002 operation and maintenance expenses.

 |
| table | | 2004         | 2003         | 2002
---------------------------------- | ------------ | ------------ | ------------
net mw in operation at december 31 | 4058         | 4001         | 3955
average realized price per mwh     | $ 41.26      | $ 39.38      | $ 40.07
generation in gwh for the year     | 32524        | 32379        | 29953
capacity factor for the year       | 92% ( 92 % ) | 92% ( 92 % ) | 93% ( 93 % ) |


| _id | dd4b8c340 |
| title |  |
| text | customer demand .
this compared with 555000 tons of total downtime in 2006 of which 150000 tons related to lack-of-orders .
printing papers in millions 2007 2006 2005 .

north american printing papers net sales in 2007 were $ 3.5 billion compared with $ 4.4 billion in 2006 ( $ 3.5 billion excluding the coated and super- calendered papers business ) and $ 4.8 billion in 2005 ( $ 3.2 billion excluding the coated and super- calendered papers business ) .

sales volumes decreased in 2007 versus 2006 partially due to reduced production capacity resulting from the conversion of the paper machine at the pensacola mill to the production of lightweight linerboard for our industrial packaging segment .
average sales price realizations increased significantly , reflecting benefits from price increases announced throughout 2007 .
lack-of-order downtime declined to 27000 tons in 2007 from 40000 tons in 2006 .

operating earnings of $ 537 million in 2007 increased from $ 482 million in 2006 ( $ 407 million excluding the coated and supercalendered papers business ) and $ 175 million in 2005 ( $ 74 million excluding the coated and supercalendered papers business ) .
the benefits from improved average sales price realizations more than offset the effects of higher input costs for wood , energy , and freight .

mill operations were favorable compared with the prior year due to current-year improvements in machine performance and energy conservation efforts .
sales volumes for the first quarter of 2008 are expected to increase slightly , and the mix of prod- ucts sold to improve .
demand for printing papers in north america was steady as the quarter began .
price increases for cut-size paper and roll stock have been announced that are expected to be effective principally late in the first quarter .

planned mill maintenance outage costs should be about the same as in the fourth quarter ; however , raw material costs are expected to continue to increase , primarily for wood and energy .
brazil ian papers net sales for 2007 of $ 850 mil- lion were higher than the $ 495 million in 2006 and the $ 465 million in 2005 .

compared with 2006 , aver- age sales price realizations improved reflecting price increases for uncoated freesheet paper realized dur- ing the second half of 2006 and the first half of 2007 .
excluding the impact of the luiz antonio acquisition , sales volumes increased primarily for cut size and offset paper .

operating profits for 2007 of $ 246 mil- lion were up from $ 122 million in 2006 and $ 134 mil- lion in 2005 as the benefits from higher sales prices and favorable manufacturing costs were only parti- ally offset by higher input costs .
contributions from the luiz antonio acquisition increased net sales by approximately $ 350 million and earnings by approx- imately $ 80 million in 2007 .
entering 2008 , sales volumes for uncoated freesheet paper and pulp should be seasonally lower .

average price realizations should be essentially flat , but mar- gins are expected to reflect a less favorable product mix .
energy costs , primarily for hydroelectric power , are expected to increase significantly reflecting a lack of rainfall in brazil in the latter part of 2007 .
european papers net sales in 2007 were $ 1.5 bil- lion compared with $ 1.3 billion in 2006 and $ 1.2 bil- lion in 2005 .

sales volumes in 2007 were higher than in 2006 at our eastern european mills reflecting stronger market demand and improved efficiencies , but lower in western europe reflecting the closure of the marasquel mill in 2006 .
average sales price real- izations increased significantly in 2007 in both east- ern and western european markets .
operating profits of $ 214 million in 2007 increased from a loss of $ 16 million in 2006 and earnings of $ 88 million in 2005 .

the loss in 2006 reflects the impact of a $ 128 million impairment charge to reduce the carrying value of the fixed assets at the saillat , france mill .
excluding this charge , the improvement in 2007 compared with 2006 reflects the contribution from higher net sales , partially offset by higher input costs for wood , energy and freight .
looking ahead to the first quarter of 2008 , sales volumes are expected to be stable in western europe , but seasonally weaker in eastern europe and russia .

average price realizations are expected to remain about flat .
wood costs are expected to increase , especially in russia due to strong demand ahead of tariff increases , and energy costs are anticipated to be seasonally higher .
asian printing papers net sales were approx- imately $ 20 million in 2007 , compared with $ 15 mil- lion in 2006 and $ 10 million in 2005 .
operating earnings increased slightly in 2007 , but were close to breakeven in all periods .
u.s .

u.s .
market pulp sales in 2007 totaled $ 655 mil- lion compared with $ 510 million and $ 525 million in 2006 and 2005 , respectively .
sales volumes in 2007 were up from 2006 levels , primarily for paper and

 |
| table | in millions      | 2007   | 2006   | 2005
---------------- | ------ | ------ | ------
sales            | $ 6530 | $ 6700 | $ 6980
operating profit | $ 1101 | $ 636  | $ 434 |


| _id | dd4bc33e0 |
| title |  |
| text | printing papers demand for printing papers products is closely corre- lated with changes in commercial printing and advertising activity , direct mail volumes and , for uncoated cut-size products , with changes in white- collar employment levels that affect the usage of copy and laser printer paper .
pulp is further affected by changes in currency rates that can enhance or disadvantage producers in different geographic regions .

principal cost drivers include manufacturing efficiency , raw material and energy costs and freight costs .
pr int ing papers net sales for 2012 were about flat with 2011 and increased 5% ( 5 % ) from 2010 .
operat- ing profits in 2012 were 31% ( 31 % ) lower than in 2011 , but 25% ( 25 % ) higher than in 2010 .
excluding facility closure costs and impairment costs , operating profits in 2012 were 30% ( 30 % ) lower than in 2011 and 25% ( 25 % ) lower than in 2010 .

benefits from higher sales volumes ( $ 58 mil- lion ) were more than offset by lower sales price real- izations and an unfavorable product mix ( $ 233 million ) , higher operating costs ( $ 30 million ) , higher maintenance outage costs ( $ 17 million ) , higher input costs ( $ 32 million ) and other items ( $ 6 million ) .

in addition , operating profits in 2011 included a $ 24 million gain related to the announced repurposing of our franklin , virginia mill to produce fluff pulp and an $ 11 million impairment charge related to our inverurie , scotland mill that was closed in 2009 .
printing papers .

north american pr int ing papers net sales were $ 2.7 billion in 2012 , $ 2.8 billion in 2011 and $ 2.8 billion in 2010 .
operating profits in 2012 were $ 331 million compared with $ 423 million ( $ 399 million excluding a $ 24 million gain associated with the repurposing of our franklin , virginia mill ) in 2011 and $ 18 million ( $ 333 million excluding facility clo- sure costs ) in 2010 .
sales volumes in 2012 were flat with 2011 .

sales volumes in 2012 were flat with 2011 .
average sales margins were lower primarily due to lower export sales prices and higher export sales volume .
input costs were higher for wood and chemicals , but were partially offset by lower purchased pulp costs .
freight costs increased due to higher oil prices .
manufacturing operating costs were favorable reflecting strong mill performance .
planned main- tenance downtime costs were slightly higher in 2012 .

no market-related downtime was taken in either 2012 or 2011 .
entering the first quarter of 2013 , sales volumes are expected to increase compared with the fourth quar- ter of 2012 reflecting seasonally stronger demand .
average sales price realizations are expected to be relatively flat as sales price realizations for domestic and export uncoated freesheet roll and cutsize paper should be stable .
input costs should increase for energy , chemicals and wood .

planned maintenance downtime costs are expected to be about $ 19 million lower with an outage scheduled at our georgetown mill versus outages at our courtland and eastover mills in the fourth quarter of 2012 .
braz i l ian papers net sales for 2012 were $ 1.1 bil- lion compared with $ 1.2 billion in 2011 and $ 1.1 bil- lion in 2010 .
operating profits for 2012 were $ 163 million compared with $ 169 million in 2011 and $ 159 million in 2010 .

sales volumes in 2012 were higher than in 2011 as international paper improved its segment position in the brazilian market despite weaker year-over-year conditions in most markets .
average sales price realizations improved for domestic uncoated freesheet paper , but the benefit was more than offset by declining prices for exported paper .
margins were favorably affected by an increased proportion of sales to the higher- margin domestic market .

raw material costs increased for wood and chemicals , but costs for purchased pulp decreased .
operating costs and planned maintenance downtime costs were lower than in 2011 .
looking ahead to 2013 , sales volumes in the first quarter are expected to be lower than in the fourth quarter of 2012 due to seasonally weaker customer demand for uncoated freesheet paper .

average sales price realizations are expected to increase in the brazilian domestic market due to the realization of an announced sales price increase for uncoated free- sheet paper , but the benefit should be partially offset by pricing pressures in export markets .
average sales margins are expected to be negatively impacted by a less favorable geographic mix .

input costs are expected to be about flat due to lower energy costs being offset by higher costs for wood , purchased pulp , chemicals and utilities .
planned maintenance outage costs should be $ 4 million lower with no outages scheduled in the first quarter .
operating costs should be favorably impacted by the savings generated by the start-up of a new biomass boiler at the mogi guacu mill .

european papers net sales in 2012 were $ 1.4 bil- lion compared with $ 1.4 billion in 2011 and $ 1.3 bil- lion in 2010 .
operating profits in 2012 were $ 179 million compared with $ 196 million ( $ 207 million excluding asset impairment charges related to our inverurie , scotland mill which was closed in 2009 ) in 2011 and $ 197 million ( $ 199 million excluding an asset impairment charge ) in 2010 .

sales volumes in 2012 compared with 2011 were higher for uncoated freesheet paper in both europe and russia , while sales volumes for pulp were lower in both regions .
average sales price realizations for uncoated

 |
| table | in millions      | 2012   | 2011   | 2010
---------------- | ------ | ------ | ------
sales            | $ 6230 | $ 6215 | $ 5940
operating profit | 599    | 872    | 481 |


| _id | dd4b93500 |
| title |  |
| text | expected term 2014 the company uses historical employee exercise and option expiration data to estimate the expected term assumption for the black-scholes grant-date valuation .
the company believes that this historical data is currently the best estimate of the expected term of a new option , and that generally its employees exhibit similar exercise behavior .
risk-free interest rate 2014 the yield on zero-coupon u.s .

treasury securities for a period that is commensurate with the expected term assumption is used as the risk-free interest rate .
expected dividend yield 2014 expected dividend yield is calculated by annualizing the cash dividend declared by the company 2019s board of directors for the current quarter and dividing that result by the closing stock price on the date of grant .

until such time as the company 2019s board of directors declares a cash dividend for an amount that is different from the current quarter 2019s cash dividend , the current dividend will be used in deriving this assumption .
cash dividends are not paid on options , restricted stock or restricted stock units .
in connection with the acquisition , the company granted restricted stock awards to replace outstanding restricted stock awards of linear employees .

these restricted stock awards entitle recipients to voting and nonforfeitable dividend rights from the date of grant .
stock-based compensation expensexp p the amount of stock-based compensation expense recognized during a period is based on the value of the awards that are ultimately expected to vest .
forfeitures are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates .

the term 201cforfeitures 201d is distinct from 201ccancellations 201d or 201cexpirations 201d and represents only the unvested portion of the surrendered stock-based award .
based on an analysis of its historical forfeitures , the company has applied an annual forfeitureff rate of 5.0% ( 5.0 % ) to all unvested stock-based awards as of november 2 , 2019 .
this analysis will be re-evaluated quarterly and the forfeiture rate will be adjusted as necessary .

ultimately , the actual expense recognized over the vesting period will only be for those awards that vest .
total stock-based compensation expense recognized is as follows: .

as of november 2 , 2019 and november 3 , 2018 , the company capitalized $ 6.8 million and $ 7.1 million , respectively , of stock-based compensation in inventory .
additional paid-in-capital ( apic ) pp poolp p ( ) the company adopted asu 2016-09 during fiscal 2018 .
asu 2016-09 eliminated the apic pool and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled .

as a result of this adoption the company recorded total excess tax benefits of $ 28.7 million and $ 26.2 million in fiscal 2019 and fiscal 2018 , respectively , from its stock-based compensation payments within income tax expense in its consolidated statements of income .
for fiscal 2017 , the apic pool represented the excess tax benefits related to stock-based compensation that were available to absorb future tax deficiencies .

if the amount of future tax deficiencies was greater than the available apic pool , the company recorded the excess as income tax expense in its consolidated statements of income .
for fiscal 2017 , the company had a sufficient apic pool to cover any tax deficiencies recorded and as a result , these deficiencies did not affect its results of operations .
analog devices , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | | 2019     | 2018     | 2017
-------------------------------------------- | -------- | -------- | --------
cost of sales                                | $ 20628  | $ 18733  | $ 12569
research and development                     | 75305    | 81444    | 51258
selling marketing general and administrative | 51829    | 50988    | 40361
special charges                              | 2538     | 2014     | 2014
total stock-based compensation expense       | $ 150300 | $ 151165 | $ 104188 |


| _id | dd4bb6942 |
| title |  |
| text | 28 , 35 , or 90 days .
the funds associated with failed auctions will not be accessible until a successful auction occurs or a buyer is found outside of the auction process .
based on broker- dealer valuation models and an analysis of other-than-temporary impairment factors , auction rate securities with an original par value of approximately $ 34 million were written-down to an estimated fair value of $ 16 million as of december 31 , 2007 .

this write-down resulted in an 201cother-than-temporary 201d impairment charge of approximately $ 8 million ( pre-tax ) included in net income and a temporary impairment charge of $ 10 million ( pre-tax ) reflected as an unrealized loss within other comprehensive income for 2007 .
as of december 31 , 2007 , these investments in auction rate securities have been in a loss position for less than six months .

these auction rate securities are classified as non-current marketable securities as of december 31 , 2007 as indicated in the preceding table .

3m reviews impairments associated with the above in accordance with emerging issues task force ( eitf ) 03-1 and fsp sfas 115-1 and 124-1 , 201cthe meaning of other-than-temporary-impairment and its application to certain investments , 201d to determine the classification of the impairment as 201ctemporary 201d or 201cother-than-temporary . 201d a temporary impairment charge results in an unrealized loss being recorded in the other comprehensive income component of stockholders 2019 equity .

such an unrealized loss does not reduce net income for the applicable accounting period because the loss is not viewed as other-than-temporary .
the company believes that a portion of the impairment of its auction rate securities investments is temporary and a portion is other-than-temporary .
the factors evaluated to differentiate between temporary and other-than-temporary include the projected future cash flows , credit ratings actions , and assessment of the credit quality of the underlying collateral .

the balance at december 31 , 2007 for marketable securities and short-term investments by contractual maturity are shown below .
actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties .
dec .
31 , ( millions ) 2007 .

predetermined intervals , usually every 7

 |
| table | ( millions )                             | dec . 31 2007
---------------------------------------- | -------------
due in one year or less                  | $ 231
due after one year through three years   | 545
due after three years through five years | 221
due after five years                     | 62
total marketable securities              | $ 1059 |


| _id | dd4b9ad82 |
| title |  |
| text | the following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2009 through fiscal 2011. .

fiscal years 2004 and 2005 irs examination during the fourth quarter of fiscal 2007 , the internal revenue service ( irs ) completed its field examination of the company 2019s fiscal years 2004 and 2005 .
on january 2 , 2008 , the irs issued its report for fiscal 2004 and 2005 , which included four proposed adjustments related to these two fiscal years that the company protested to the irs appeals office .

two of the unresolved matters were one-time issues that pertain to section 965 of the internal revenue code related to the beneficial tax treatment of dividends paid from foreign owned companies under the american jobs creation act .
the other matters pertained to the computation of the research and development ( r&d ) tax credit and certain profits earned from manufacturing activities carried on outside the united states .

the company recorded a tax liability for a portion of the proposed r&d tax credit adjustment .
these four items had an additional potential tax liability of $ 46 million .
the company concluded , based on discussions with its tax advisors , that these items were not likely to result in any additional tax liability .
therefore , the company did not record a tax liability for these items .

during the second quarter of fiscal 2011 , the company reached settlement with the irs appeals office on three of the four items under protest .
the remaining unresolved matter is a one-time issue pertaining to section 965 of the internal revenue code related to the beneficial tax treatment of dividends from foreign owned companies under the american jobs creation act .
the company will file a petition with the tax court with respect to this open matter .

the potential liability for this adjustment is $ 36.5 million .
the company has concluded , based on discussions with its tax advisors , that this item is not likely to result in any additional tax liability .
therefore , the company has not recorded any additional tax liability for this issue .
fiscal years 2006 and 2007 irs examination during the third quarter of fiscal 2009 , the irs completed its field examination of the company 2019s fiscal years 2006 and 2007 .

the irs and the company agreed on the treatment of a number of issues that have been included in an issue resolutions agreement related to the 2006 and 2007 tax returns .

however , no agreement was reached on the tax treatment of a number of issues for the fiscal 2006 and fiscal 2007 years , including the same r&d tax credit and foreign manufacturing issues mentioned above related to fiscal 2004 and 2005 , the pricing of intercompany sales ( transfer pricing ) and the deductibility of certain stock option compensation expenses .
the company recorded taxes related to a portion of the proposed r&d tax credit adjustment .

these four items had an additional potential total tax liability of $ 195 million .
the company concluded , based on discussions with its tax advisors that these items were not likely to result in any additional tax liability .
therefore , the company did not record any additional tax liability for these items and appealed these proposed adjustments through the normal processes for the resolution of differences between the irs and taxpayers .

during the second quarter of fiscal 2011 , the company reached an agreement with the irs appeals office on three of the four protested items , two of which were the same issues settled relating to the 2004 and 2005 fiscal years .
transfer pricing remained as the only item under protest with the irs appeals office related to the fiscal analog devices , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | balance november 1 2008                             | $ 13750
--------------------------------------------------- | ----------------
additions for tax positions of 2009                 | 4411
balance october 31 2009                             | 18161
additions for tax positions of 2010                 | 286
balance october 30 2010                             | $ 18447
additions for tax positions related to prior years  | 9265
reductions for tax positions related to prior years | -17677 ( 17677 )
settlements with taxing authorities                 | -370 ( 370 )
balance october 29 2011                             | $ 9665 |


| _id | dd4c37394 |
| title |  |
| text | mastercard incorporated notes to consolidated financial statements 2014 ( continued ) ( in thousands , except percent and per share data ) the company does not make any contributions to its postretirement plan other than funding benefits payments .
the following table summarizes expected net benefit payments from the company 2019s general assets through 2019 : benefit payments expected subsidy receipts benefit payments .

the company provides limited postemployment benefits to eligible former u.s .
employees , primarily severance under a formal severance plan ( the 201cseverance plan 201d ) .
the company accounts for severance expense by accruing the expected cost of the severance benefits expected to be provided to former employees after employment over their relevant service periods .

the company updates the assumptions in determining the severance accrual by evaluating the actual severance activity and long-term trends underlying the assumptions .
as a result of updating the assumptions , the company recorded incremental severance expense ( benefit ) related to the severance plan of $ 3471 , $ 2643 and $ ( 3418 ) , respectively , during the years 2009 , 2008 and 2007 .

these amounts were part of total severance expenses of $ 135113 , $ 32997 and $ 21284 in 2009 , 2008 and 2007 , respectively , included in general and administrative expenses in the accompanying consolidated statements of operations .
note 14 .
debt on april 28 , 2008 , the company extended its committed unsecured revolving credit facility , dated as of april 28 , 2006 ( the 201ccredit facility 201d ) , for an additional year .
the new expiration date of the credit facility is april 26 , 2011 .

the available funding under the credit facility will remain at $ 2500000 through april 27 , 2010 and then decrease to $ 2000000 during the final year of the credit facility agreement .
other terms and conditions in the credit facility remain unchanged .
the company 2019s option to request that each lender under the credit facility extend its commitment was provided pursuant to the original terms of the credit facility agreement .

borrowings under the facility are available to provide liquidity in the event of one or more settlement failures by mastercard international customers and , subject to a limit of $ 500000 , for general corporate purposes .
the facility fee and borrowing cost are contingent upon the company 2019s credit rating .
at december 31 , 2009 , the facility fee was 7 basis points on the total commitment , or approximately $ 1774 annually .

interest on borrowings under the credit facility would be charged at the london interbank offered rate ( libor ) plus an applicable margin of 28 basis points or an alternative base rate , and a utilization fee of 10 basis points would be charged if outstanding borrowings under the facility exceed 50% ( 50 % ) of commitments .
at the inception of the credit facility , the company also agreed to pay upfront fees of $ 1250 and administrative fees of $ 325 , which are being amortized over five years .

facility and other fees associated with the credit facility totaled $ 2222 , $ 2353 and $ 2477 for each of the years ended december 31 , 2009 , 2008 and 2007 , respectively .
mastercard was in compliance with the covenants of the credit facility and had no borrowings under the credit facility at december 31 , 2009 or december 31 , 2008 .
the majority of credit facility lenders are members or affiliates of members of mastercard international .

in june 1998 , mastercard international issued ten-year unsecured , subordinated notes ( the 201cnotes 201d ) paying a fixed interest rate of 6.67% ( 6.67 % ) per annum .
mastercard repaid the entire principal amount of $ 80000 on june 30 , 2008 pursuant to the terms of the notes .
the interest expense on the notes was $ 2668 and $ 5336 for each of the years ended december 31 , 2008 and 2007 , respectively.

 |
| table | | benefit payments | expected subsidy receipts | net benefit payments
-------------- | ---------------- | ------------------------- | --------------------
2010           | $ 2714           | $ 71                      | $ 2643
2011           | 3028             | 91                        | 2937
2012           | 3369             | 111                       | 3258
2013           | 3660             | 134                       | 3526
2014           | 4019             | 151                       | 3868
2015 2013 2019 | 22686            | 1071                      | 21615 |


| _id | dd4c109d8 |
| title |  |
| text | an adverse development with respect to one claim in 2008 and favorable developments in three cases in 2009 .
other costs were also lower in 2009 compared to 2008 , driven by a decrease in expenses for freight and property damages , employee travel , and utilities .
in addition , higher bad debt expense in 2008 due to the uncertain impact of the recessionary economy drove a favorable year-over-year comparison .

conversely , an additional expense of $ 30 million related to a transaction with pacer international , inc .
and higher property taxes partially offset lower costs in 2009 .
other costs were higher in 2008 compared to 2007 due to an increase in bad debts , state and local taxes , loss and damage expenses , utility costs , and other miscellaneous expenses totaling $ 122 million .
conversely , personal injury costs ( including asbestos-related claims ) were $ 8 million lower in 2008 compared to 2007 .

the reduction reflects improvements in our safety experience and lower estimated costs to resolve claims as indicated in the actuarial studies of our personal injury expense and annual reviews of asbestos-related claims in both 2008 and 2007 .
the year-over-year comparison also includes the negative impact of adverse development associated with one claim in 2008 .
in addition , environmental and toxic tort expenses were $ 7 million lower in 2008 compared to 2007 .

non-operating items millions of dollars 2009 2008 2007 % (  % ) change 2009 v 2008 % (  % ) change 2008 v 2007 .

other income 2013 other income increased $ 103 million in 2009 compared to 2008 primarily due to higher gains from real estate sales , which included the $ 116 million pre-tax gain from a land sale to the regional transportation district ( rtd ) in colorado and lower interest expense on our sale of receivables program , resulting from lower interest rates and a lower outstanding balance .

reduced rental and licensing income and lower returns on cash investments , reflecting lower interest rates , partially offset these increases .
other income decreased in 2008 compared to 2007 due to lower gains from real estate sales and decreased returns on cash investments reflecting lower interest rates .
higher rental and licensing income and lower interest expense on our sale of receivables program partially offset the decreases .

interest expense 2013 interest expense increased in 2009 versus 2008 due primarily to higher weighted- average debt levels .
in 2009 , the weighted-average debt level was $ 9.6 billion ( including the restructuring of locomotive leases in may of 2009 ) , compared to $ 8.3 billion in 2008 .
our effective interest rate was 6.3% ( 6.3 % ) in 2009 , compared to 6.1% ( 6.1 % ) in 2008 .

interest expense increased in 2008 versus 2007 due to a higher weighted-average debt level of $ 8.3 billion , compared to $ 7.3 billion in 2007 .
a lower effective interest rate of 6.1% ( 6.1 % ) in 2008 , compared to 6.6% ( 6.6 % ) in 2007 , partially offset the effects of the higher weighted-average debt level .
income taxes 2013 income taxes were lower in 2009 compared to 2008 , driven by lower pre-tax income .

our effective tax rate for the year was 36.5% ( 36.5 % ) compared to 36.1% ( 36.1 % ) in 2008 .
income taxes were higher in 2008 compared to 2007 , driven by higher pre-tax income .
our effective tax rates were 36.1% ( 36.1 % ) and 38.4% ( 38.4 % ) in 2008 and 2007 , respectively .
the lower effective tax rate in 2008 resulted from several reductions in tax expense related to federal audits and state tax law changes .

in addition , the effective tax rate in 2007 was increased by illinois legislation that increased deferred tax expense in the third quarter of 2007.

 |
| table | millions of dollars | 2009           | 2008           | 2007           | % (  % ) change 2009 v 2008 | % (  % ) change 2008 v 2007
------------------- | -------------- | -------------- | -------------- | --------------------------- | ---------------------------
other income        | $ 195          | $ 92           | $ 116          | 112 % (  % )                | ( 21 ) % (  % )
interest expense    | -600 ( 600 )   | -511 ( 511 )   | -482 ( 482 )   | 17                          | 6
income taxes        | -1089 ( 1089 ) | -1318 ( 1318 ) | -1154 ( 1154 ) | -17 ( 17 )                  | 14 |


| _id | dd4c31818 |
| title |  |
| text | contractual obligations .
the following table shows our contractual obligations for the period indicated: .

( 1 ) interest expense on 6.6% ( 6.6 % ) long term notes is assumed to be fixed through contractual term .
( 2 ) loss and lae reserves represent our best estimate of losses from claim and related settlement costs .
both the amounts and timing of such payments are estimates , and the inherent variability of resolving claims as well as changes in market conditions make the timing of cash flows uncertain .
therefore , the ultimate amount and timing of loss and lae payments could differ from our estimates .

the contractual obligations for senior notes , long term notes and junior subordinated debt are the responsibility of holdings .
we have sufficient cash flow , liquidity , investments and access to capital markets to satisfy these obligations .
holdings gen- erally depends upon dividends from everest re , its operating insurance subsidiary for its funding , capital contributions from group or access to the capital markets .

our various operating insurance and reinsurance subsidiaries have sufficient cash flow , liquidity and investments to settle outstanding reserves for losses and lae .
management believes that we , and each of our entities , have sufficient financial resources or ready access thereto , to meet all obligations .
dividends .
during 2007 , 2006 and 2005 , we declared and paid shareholder dividends of $ 121.4 million , $ 39.0 million and $ 25.4 million , respectively .

as an insurance holding company , we are partially dependent on dividends and other permitted pay- ments from our subsidiaries to pay cash dividends to our shareholders .
the payment of dividends to group by holdings and to holdings by everest re is subject to delaware regulatory restrictions and the payment of dividends to group by bermuda re is subject to bermuda insurance regulatory restrictions .

management expects that , absent extraordinary catastrophe losses , such restrictions should not affect everest re 2019s ability to declare and pay dividends sufficient to support holdings 2019 general corporate needs and that holdings and bermuda re will have the ability to declare and pay dividends sufficient to support group 2019s general corporate needs .

for the years ended december 31 , 2007 , 2006 and 2005 , everest re paid divi- dends to holdings of $ 245.0 million , $ 100.0 million and $ 75.0 million , respectively .
for the years ended december 31 , 2007 , 2006 and 2005 , bermuda re paid dividends to group of $ 0.0 million , $ 60.0 million and $ 45.0 million , respectively .
see item 1 , 201cbusiness 2013 regulatory matters 2013 dividends 201d and note 16 of notes to consolidated financial statements .
application of new accounting standards .

application of new accounting standards .
in november 2005 , the fasb issued fasb staff position ( 201cfsp 201d ) fas 115-1 , 201cthe meaning of other-than-temporary impairment and its application to certain investments 201d ( 201cfas 115-1 201d ) , which is effective for reporting periods beginning after december 15 , 2005 .
fas 115-1 addresses the determination as to when an investment is considered impaired , whether the impairment is other than temporary and the measurement of an impairment loss .

fas 115-1 also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain dis- closures about unrealized losses not recognized as other-than-temporary impairments .
the company adopted fas 115-1 prospectively effective january 1 , 2006 .
the company believes that all unrealized losses in its investment portfolio are temporary in nature.

 |
| table | ( dollars in millions )                | payments due by period total | payments due by period less than 1 year | payments due by period 1-3 years | payments due by period 3-5 years | payments due by period more than 5 years
-------------------------------------- | ---------------------------- | --------------------------------------- | -------------------------------- | -------------------------------- | ----------------------------------------
8.75% ( 8.75 % ) senior notes          | $ 200.0                      | $ -                                     | $ 200.0                          | $ -                              | $ -
5.40% ( 5.40 % ) senior notes          | 250.0                        | -                                       | -                                | -                                | 250.0
junior subordinated debt               | 329.9                        | -                                       | -                                | -                                | 329.9
6.6% ( 6.6 % ) long term notes         | 400.0                        | -                                       | -                                | -                                | 400.0
interest expense ( 1 )                 | 2243.0                       | 77.2                                    | 145.7                            | 119.5                            | 1900.6
employee benefit plans                 | 2.4                          | 2.4                                     | -                                | -                                | -
operating lease agreements             | 32.0                         | 8.5                                     | 16.3                             | 3.7                              | 3.5
gross reserve for losses and lae ( 2 ) | 9040.6                       | 2053.2                                  | 3232.3                           | 1077.1                           | 2678.1
total                                  | $ 12497.9                    | $ 2141.3                                | $ 3594.3                         | $ 1200.3                         | $ 5562.0 |


| _id | dd4bc8c64 |
| title |  |
| text | our non-operating investment activity resulted in net losses of $ 12.7 million in 2009 and $ 52.3 million in 2008 .
the improvement of nearly $ 40 million is primarily attributable to a reduction in the other than temporary impairments recognized on our investments in sponsored mutual funds in 2009 versus 2008 .
the following table details our related mutual fund investment gains and losses ( in millions ) during the past two years. .

lower income of $ 16 million from our money market holdings due to the significantly lower interest rate environment offset the improvement experienced with our fund investments .
there is no impairment of any of our mutual fund investments at december 31 , 2009 .
the 2009 provision for income taxes as a percentage of pretax income is 37.1% ( 37.1 % ) , down from 38.4% ( 38.4 % ) in 2008 and .9% ( .9 % ) lower than our present estimate of 38.0% ( 38.0 % ) for the 2010 effective tax rate .

our 2009 provision includes reductions of prior years 2019 tax provisions and discrete nonrecurring benefits that lowered our 2009 effective tax rate by 1.0% ( 1.0 % ) .
2008 versus 2007 .
investment advisory revenues decreased 6.3% ( 6.3 % ) , or $ 118 million , to $ 1.76 billion in 2008 as average assets under our management decreased $ 16 billion to $ 358.2 billion .

the average annualized fee rate earned on our assets under management was 49.2 basis points in 2008 , down from the 50.2 basis points earned in 2007 , as lower equity market valuations resulted in a greater percentage of our assets under management being attributable to lower fee fixed income portfolios .

continuing stress on the financial markets and resulting lower equity valuations as 2008 progressed resulted in lower average assets under our management , lower investment advisory fees and lower net income as compared to prior periods .
net revenues decreased 5% ( 5 % ) , or $ 112 million , to $ 2.12 billion .
operating expenses were $ 1.27 billion in 2008 , up 2.9% ( 2.9 % ) or $ 36 million from 2007 .
net operating income for 2008 decreased $ 147.9 million , or 14.8% ( 14.8 % ) , to $ 848.5 million .

higher operating expenses in 2008 and decreased market valuations during the latter half of 2008 , which lowered our assets under management and advisory revenues , resulted in our 2008 operating margin declining to 40.1% ( 40.1 % ) from 44.7% ( 44.7 % ) in 2007 .
non-operating investment losses in 2008 were $ 52.3 million as compared to investment income of $ 80.4 million in 2007 .

investment losses in 2008 include non-cash charges of $ 91.3 million for the other than temporary impairment of certain of the firm 2019s investments in sponsored mutual funds .
net income in 2008 fell 27% ( 27 % ) or nearly $ 180 million from 2007 .
diluted earnings per share , after the retrospective application of new accounting guidance effective in 2009 , decreased to $ 1.81 , down $ .59 or 24.6% ( 24.6 % ) from $ 2.40 in 2007 .

a non-operating charge to recognize other than temporary impairments of our sponsored mutual fund investments reduced diluted earnings per share by $ .21 in 2008 .
investment advisory revenues earned from the t .
rowe price mutual funds distributed in the united states decreased 8.5% ( 8.5 % ) , or $ 114.5 million , to $ 1.24 billion .
average mutual fund assets were $ 216.1 billion in 2008 , down $ 16.7 billion from 2007 .

mutual fund assets at december 31 , 2008 , were $ 164.4 billion , down $ 81.6 billion from the end of 2007 .
net inflows to the mutual funds during 2008 were $ 3.9 billion , including $ 1.9 billion to the money funds , $ 1.1 billion to the bond funds , and $ .9 billion to the stock funds .
the value , equity index 500 , and emerging markets stock funds combined to add $ 4.1 billion , while the mid-cap growth and equity income stock funds had net redemptions of $ 2.2 billion .

net fund inflows of $ 6.2 billion originated in our target-date retirement funds , which in turn invest in other t .
rowe price funds .
fund net inflow amounts in 2008 are presented net of $ 1.3 billion that was transferred to target-date trusts from the retirement funds during the year .
decreases in market valuations and income not reinvested lowered our mutual fund assets under management by $ 85.5 billion during 2008 .

investment advisory revenues earned on the other investment portfolios that we manage decreased $ 3.6 million to $ 522.2 million .
average assets in these portfolios were $ 142.1 billion during 2008 , up slightly from $ 141.4 billion in 2007 .
these minor changes , each less than 1% ( 1 % ) , are attributable to the timing of declining equity market valuations and cash flows among our separate account and subadvised portfolios .

net inflows , primarily from institutional investors , were $ 13.2 billion during 2008 , including the $ 1.3 billion transferred from the retirement funds to target-date trusts .
decreases in market valuations , net of income , lowered our assets under management in these portfolios by $ 55.3 billion during 2008 .
management 2019s discussion & analysis 21

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


| _id | dd4c50394 |
| title |  |
| text | five-year stock performance graph the graph below illustrates the cumulative total shareholder return on snap-on common stock since december 31 , 2008 , assuming that dividends were reinvested .
the graph compares snap-on 2019s performance to that of the standard & poor 2019s 500 stock index ( 201cs&p 500 201d ) and a peer group .
snap-on incorporated total shareholder return ( 1 ) fiscal year ended ( 2 ) snap-on incorporated peer group ( 3 ) s&p 500 .

( 1 ) assumes $ 100 was invested on december 31 , 2008 , and that dividends were reinvested quarterly .
( 2 ) the company's fiscal year ends on the saturday that is on or nearest to december 31 of each year ; for ease of calculation , the fiscal year end is assumed to be december 31 .
( 3 ) the peer group consists of : stanley black & decker , inc. , danaher corporation , emerson electric co. , genuine parts company , newell rubbermaid inc. , pentair ltd. , spx corporation and w.w .
grainger , inc .

grainger , inc .
24 snap-on incorporated 2009 2010 2011 2012 2013 snap-on incorporated peer group s&p 500

 |
| table | fiscal year ended ( 2 ) | snap-onincorporated | peer group ( 3 ) | s&p 500
----------------------- | ------------------- | ---------------- | --------
december 31 2008        | $ 100.00            | $ 100.00         | $ 100.00
december 31 2009        | 111.40              | 127.17           | 126.46
december 31 2010        | 153.24              | 169.36           | 145.51
december 31 2011        | 140.40              | 165.85           | 148.59
december 31 2012        | 223.82              | 195.02           | 172.37
december 31 2013        | 315.72              | 265.68           | 228.19 |