| _id | dd4bc83ae |
| title |  |
| text | 9 .
lease commitments the company leases certain land , facilities , equipment and software under various operating leases that expire at various dates through 2057 .
the lease agreements frequently include renewal and escalation clauses and require the company to pay taxes , insurance and maintenance costs .
total rental expense under operating leases was approximatelya $ 92.3 million in fiscal 2019 , $ 84.9 million in fiscal 2018 and $ 58.8 million in fiscal 2017 .

the following is a schedule of futureff minimum rental payments required under long-term operating leases at november 2 , 2019 : operating fiscal years leases .

10 .
commitments and contingencies from time to time , in the ordinary course of the company 2019s business , various claims , charges and litigation are asserted or commenced against the company arising from , or related to , among other things , contractual matters , patents , trademarks , personal injury , environmental matters , product liability , insurance coverage , employment or employment benefits .
as to such claims and litigation , the company can give no assurance that it will prevail .

the company does not believe that any current legal matters will have a material adverse effect on the company 2019s financial position , results of operations or cash flows .
11 .
retirement plans the company and its subsidiaries have various savings and retirement plans covering substantially all employees .
defined contribution plans the company maintains a defined contribution plan for the benefit of its eligible u.s .
employees .

employees .
this plan provides for company contributions of up to 5% ( 5 % ) of each participant 2019s total eligible compensation .
in addition , the company contributes an amount equal to each participant 2019s pre-tax contribution , if any , up to a maximum of 3% ( 3 % ) of each participant 2019s total eligible compensation .
the total expense related to the defined contribution plans for u.s .

employees was $ 47.7 million in fiscal 2019 , $ 41.4 million in fiscal 2018 and $ 35.8 million in fiscal 2017 .
non-qualified deferred compensation plan the deferred compensation plan ( dcp ) allows certain members of management and other highly-compensated employees and non-employee directors to defer receipt of all or any portion of their compensation .

the dcp was established to provide participants with the opportunity to defer receiving all or a portion of their compensation , which includes salary , bonus , commissions and director fees .
under the dcp , the company provides all participants ( other than non-employee directors ) with company contributions equal to 8% ( 8 % ) of eligible deferred contributions .
the dcp is a non-qualified plan that is maintained in a rabbi trust .

the fair value of the investments held in the rabbi trust are presented separately as deferred compensation plan investments , with the current portion of the investment included in prepaid expenses and other current assets in the consolidated balance sheets .
see note 2j , fair value , for further information on these investments .
the deferred compensation obligation represents dcp participant accumulated deferrals and earnings thereon since the inception of the dcp net of withdrawals .

the deferred compensation obligation is presented separately as deferred compensation plan liability , with the current portion of the obligation in accrued liabilities in the consolidated balance sheets .
the company 2019s liability under the dcp is an unsecured general obligation of the company .
analog devices , inc .
notes to consolidated financial statements 2014 ( continued )

 |
| table | fiscal years | operating leases
------------ | ----------------
2020         | $ 79789
2021         | 67993
2022         | 40338
2023         | 37673
2024         | 32757
later years  | 190171
total        | $ 448721 |


| _id | dd4bbdec2 |
| title |  |
| text | management 2019s discussion and analysis we believe our credit ratings are primarily based on the credit rating agencies 2019 assessment of : 2030 our liquidity , market , credit and operational risk management practices ; 2030 the level and variability of our earnings ; 2030 our capital base ; 2030 our franchise , reputation and management ; 2030 our corporate governance ; and 2030 the external operating environment , including the assumed level of government support .

certain of the firm 2019s derivatives have been transacted under bilateral agreements with counterparties who may require us to post collateral or terminate the transactions based on changes in our credit ratings .
we assess the impact of these bilateral agreements by determining the collateral or termination payments that would occur assuming a downgrade by all rating agencies .

a downgrade by any one rating agency , depending on the agency 2019s relative ratings of the firm at the time of the downgrade , may have an impact which is comparable to the impact of a downgrade by all rating agencies .

we allocate a portion of our gce to ensure we would be able to make the additional collateral or termination payments that may be required in the event of a two-notch reduction in our long-term credit ratings , as well as collateral that has not been called by counterparties , but is available to them .

the table below presents the additional collateral or termination payments that could have been called at the reporting date by counterparties in the event of a one-notch and two-notch downgrade in our credit ratings. .

in millions 2012 2011 additional collateral or termination payments for a one-notch downgrade $ 1534 $ 1303 additional collateral or termination payments for a two-notch downgrade 2500 2183 cash flows as a global financial institution , our cash flows are complex and bear little relation to our net earnings and net assets .

consequently , we believe that traditional cash flow analysis is less meaningful in evaluating our liquidity position than the excess liquidity and asset-liability management policies described above .
cash flow analysis may , however , be helpful in highlighting certain macro trends and strategic initiatives in our businesses .
year ended december 2012 .
our cash and cash equivalents increased by $ 16.66 billion to $ 72.67 billion at the end of 2012 .

we generated $ 9.14 billion in net cash from operating and investing activities .
we generated $ 7.52 billion in net cash from financing activities from an increase in bank deposits , partially offset by net repayments of unsecured and secured long-term borrowings .
year ended december 2011 .
our cash and cash equivalents increased by $ 16.22 billion to $ 56.01 billion at the end of 2011 .
we generated $ 23.13 billion in net cash from operating and investing activities .

we used net cash of $ 6.91 billion for financing activities , primarily for repurchases of our series g preferred stock and common stock , partially offset by an increase in bank deposits .
year ended december 2010 .
our cash and cash equivalents increased by $ 1.50 billion to $ 39.79 billion at the end of 2010 .
we generated $ 7.84 billion in net cash from financing activities primarily from net proceeds from issuances of short-term secured financings .

we used net cash of $ 6.34 billion for operating and investing activities , primarily to fund an increase in securities purchased under agreements to resell and an increase in cash and securities segregated for regulatory and other purposes , partially offset by cash generated from a decrease in securities borrowed .
goldman sachs 2012 annual report 87

 |
| table | in millions                                                             | as of december 2012 | as of december 2011
----------------------------------------------------------------------- | ------------------- | -------------------
additional collateral or termination payments for a one-notch downgrade | $ 1534              | $ 1303
additional collateral or termination payments for a two-notch downgrade | 2500                | 2183 |


| _id | dd4b933fc |
| title |  |
| text | intermodal 2013 decreased volumes and fuel surcharges reduced freight revenue from intermodal shipments in 2009 versus 2008 .
volume from international traffic decreased 24% ( 24 % ) in 2009 compared to 2008 , reflecting economic conditions , continued weak imports from asia , and diversions to non-uprr served ports .

additionally , continued weakness in the domestic housing and automotive sectors translated into weak demand in large sectors of the international intermodal market , which also contributed to the volume decline .
conversely , domestic traffic increased 8% ( 8 % ) in 2009 compared to 2008 .
a new contract with hub group , inc. , which included additional shipments , was executed in the second quarter of 2009 and more than offset the impact of weak market conditions in the second half of 2009 .

price increases and fuel surcharges generated higher revenue in 2008 , partially offset by lower volume levels .
international traffic declined 11% ( 11 % ) in 2008 , reflecting continued softening of imports from china and the loss of a customer contract .
notably , the peak intermodal shipping season , which usually starts in the third quarter , was particularly weak in 2008 .

additionally , continued weakness in domestic housing and automotive sectors translated into weak demand in large sectors of the international intermodal market , which also contributed to lower volumes .
domestic traffic declined 3% ( 3 % ) in 2008 due to the loss of a customer contract and lower volumes from less-than-truckload shippers .
additionally , the flood-related embargo on traffic in the midwest during the second quarter hindered intermodal volume levels in 2008 .

mexico business 2013 each of our commodity groups include revenue from shipments to and from mexico .
revenue from mexico business decreased 26% ( 26 % ) in 2009 versus 2008 to $ 1.2 billion .
volume declined in five of our six commodity groups , down 19% ( 19 % ) in 2009 , driven by 32% ( 32 % ) and 24% ( 24 % ) reductions in industrial products and automotive shipments , respectively .
conversely , energy shipments increased 9% ( 9 % ) in 2009 versus 2008 , partially offsetting these declines .

revenue from mexico business increased 13% ( 13 % ) to $ 1.6 billion in 2008 compared to 2007 .
price improvements and fuel surcharges contributed to these increases , partially offset by a 4% ( 4 % ) decline in volume in 2008 compared to 2007 .
operating expenses millions of dollars 2009 2008 2007 % (  % ) change 2009 v 2008 % (  % ) change 2008 v 2007 .

2009 intermodal revenue international domestic

 |
| table | millions of dollars              | 2009    | 2008    | 2007    | % (  % ) change 2009 v 2008 | % (  % ) change 2008 v 2007
-------------------------------- | ------- | ------- | ------- | --------------------------- | ---------------------------
compensation and benefits        | $ 4063  | $ 4457  | $ 4526  | ( 9 ) % (  % )              | ( 2 ) % (  % )
fuel                             | 1763    | 3983    | 3104    | -56 ( 56 )                  | 28
purchased services and materials | 1614    | 1902    | 1856    | -15 ( 15 )                  | 2
depreciation                     | 1444    | 1387    | 1321    | 4                           | 5
equipment and other rents        | 1180    | 1326    | 1368    | -11 ( 11 )                  | -3 ( 3 )
other                            | 687     | 840     | 733     | -18 ( 18 )                  | 15
total                            | $ 10751 | $ 13895 | $ 12908 | ( 23 ) % (  % )             | 8% ( 8 % ) |


| _id | dd4bc6b26 |
| title |  |
| text | entergy new orleans , inc .
management 2019s financial discussion and analysis the volume/weather variance is primarily due to an increase in electricity usage in the residential and commercial sectors due in part to a 4% ( 4 % ) increase in the average number of residential customers and a 3% ( 3 % ) increase in the average number of commercial customers , partially offset by the effect of less favorable weather on residential sales .

gross operating revenues gross operating revenues decreased primarily due to : a decrease of $ 16.2 million in electric fuel cost recovery revenues due to lower fuel rates ; a decrease of $ 15.4 million in gross gas revenues primarily due to lower fuel cost recovery revenues as a result of lower fuel rates and the effect of milder weather ; and formula rate plan decreases effective october 2010 and october 2011 , as discussed above .

the decrease was partially offset by an increase in gross wholesale revenue due to increased sales to affiliated customers and more favorable volume/weather , as discussed above .
2010 compared to 2009 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2010 to 2009 .
amount ( in millions ) .

the volume/weather variance is primarily due to an increase of 348 gwh , or 7% ( 7 % ) , in billed retail electricity usage primarily due to more favorable weather compared to last year .
the net gas revenue variance is primarily due to more favorable weather compared to last year , along with the recognition of a gas regulatory asset associated with the settlement of entergy new orleans 2019s electric and gas formula rate plans .

see note 2 to the financial statements for further discussion of the formula rate plan settlement .
the effect of 2009 rate case settlement variance results from the april 2009 settlement of entergy new orleans 2019s rate case , and includes the effects of realigning non-fuel costs associated with the operation of grand gulf from the fuel adjustment clause to electric base rates effective june 2009 .
see note 2 to the financial statements for further discussion of the rate case settlement .

other income statement variances 2011 compared to 2010 other operation and maintenance expenses decreased primarily due to the deferral in 2011 of $ 13.4 million of 2010 michoud plant maintenance costs pursuant to the settlement of entergy new orleans 2019s 2010 test year formula rate plan filing approved by the city council in september 2011 and a decrease of $ 8.0 million in fossil- fueled generation expenses due to higher plant outage costs in 2010 due to a greater scope of work at the michoud plant .

see note 2 to the financial statements for more discussion of the 2010 test year formula rate plan filing.

 |
| table | | amount ( in millions )
----------------------------------- | ----------------------
2009 net revenue                    | $ 243.0
volume/weather                      | 17.0
net gas revenue                     | 14.2
effect of 2009 rate case settlement | -6.6 ( 6.6 )
other                               | 5.3
2010 net revenue                    | $ 272.9 |


| _id | dd4bf56b0 |
| title |  |
| text | financial assurance we must provide financial assurance to governmental agencies and a variety of other entities under applicable environmental regulations relating to our landfill operations for capping , closure and post-closure costs , and related to our performance under certain collection , landfill and transfer station contracts .

we satisfy these financial assurance requirements by providing surety bonds , letters of credit , or insurance policies ( financial assurance instruments ) , or trust deposits , which are included in restricted cash and marketable securities and other assets in our consolidated balance sheets .
the amount of the financial assurance requirements for capping , closure and post-closure costs is determined by applicable state environmental regulations .

the financial assurance requirements for capping , closure and post-closure costs may be associated with a portion of the landfill or the entire landfill .
generally , states require a third-party engineering specialist to determine the estimated capping , closure and post-closure costs that are used to determine the required amount of financial assurance for a landfill .
the amount of financial assurance required can , and generally will , differ from the obligation determined and recorded under u.s .

gaap .
the amount of the financial assurance requirements related to contract performance varies by contract .
additionally , we must provide financial assurance for our insurance program and collateral for certain performance obligations .
we do not expect a material increase in financial assurance requirements during 2016 , although the mix of financial assurance instruments may change .

these financial assurance instruments are issued in the normal course of business and are not considered indebtedness .
because we currently have no liability for the financial assurance instruments , they are not reflected in our consolidated balance sheets ; however , we record capping , closure and post-closure liabilities and insurance liabilities as they are incurred .

off-balance sheet arrangements we have no off-balance sheet debt or similar obligations , other than operating leases and financial assurances , which are not classified as debt .
we have no transactions or obligations with related parties that are not disclosed , consolidated into or reflected in our reported financial position or results of operations .
we have not guaranteed any third-party debt .
free cash flow we define free cash flow , which is not a measure determined in accordance with u.s .

gaap , as cash provided by operating activities less purchases of property and equipment , plus proceeds from sales of property and equipment , as presented in our consolidated statements of cash flows .
the following table calculates our free cash flow for the years ended december 31 , 2015 , 2014 and 2013 ( in millions of dollars ) : .

for a discussion of the changes in the components of free cash flow , see our discussion regarding cash flows provided by operating activities and cash flows used in investing activities contained elsewhere in this management 2019s discussion and analysis of financial condition and results of operations.

 |
| table | | 2015             | 2014             | 2013
--------------------------------------------- | ---------------- | ---------------- | ----------------
cash provided by operating activities         | $ 1679.7         | $ 1529.8         | $ 1548.2
purchases of property and equipment           | -945.6 ( 945.6 ) | -862.5 ( 862.5 ) | -880.8 ( 880.8 )
proceeds from sales of property and equipment | 21.2             | 35.7             | 23.9
free cash flow                                | $ 755.3          | $ 703.0          | $ 691.3 |


| _id | dd4bdbdd2 |
| title |  |
| text | performance graph the following graph shows a five-year comparison of the cumulative total return on our common stock , the nasdaq composite index , the s&p 500 index and the s&p 500 information technology index from april 24 , 2009 through april 25 , 2014 .
the past performance of our common stock is not indicative of the future performance of our common stock .

comparison of 5 year cumulative total return* among netapp , inc. , the nasdaq composite index , the s&p 500 index and the s&p 500 information technology index .

we believe that a number of factors may cause the market price of our common stock to fluctuate significantly .
see 201citem 1a .
risk factors . 201d sale of unregistered securities

 |
| table | | 4/09     | 4/10     | 4/11     | 4/12     | 4/13     | 4/14
------------------------------ | -------- | -------- | -------- | -------- | -------- | --------
netapp inc .                   | $ 100.00 | $ 189.45 | $ 284.75 | $ 212.19 | $ 190.66 | $ 197.58
nasdaq composite               | 100.00   | 144.63   | 170.44   | 182.57   | 202.25   | 253.22
s&p 500                        | 100.00   | 138.84   | 162.75   | 170.49   | 199.29   | 240.02
s&p 500 information technology | 100.00   | 143.49   | 162.37   | 186.06   | 189.18   | 236.12 |


| _id | dd4c5e6d8 |
| title |  |
| text | stock performance graph the following graph sets forth the cumulative total shareholder return on our series a common stock , series b common stock and series c common stock as compared with the cumulative total return of the companies listed in the standard and poor 2019s 500 stock index ( 201cs&p 500 index 201d ) and a peer group of companies comprised of cbs corporation class b common stock , news corporation class a common stock , scripps network interactive , inc. , time warner , inc. , viacom , inc .

class b common stock and the walt disney company .
the graph assumes $ 100 originally invested on september 18 , 2008 , the date upon which our common stock began trading , in each of our series a common stock , series b common stock and series c common stock , the s&p 500 index , and the stock of our peer group companies , including reinvestment of dividends , for the period september 18 , 2008 through december 31 , 2008 and the years ended december 31 , 2009 , 2010 and 2011 .

of cash on hand , cash generated by operations , borrowings under our revolving credit facility and future financing transactions .
under the program , management is authorized to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements , and subject to stock price , business conditions , market conditions and other factors .
the repurchase program does not have an expiration date .

the above repurchases were funded using cash on hand .
there were no repurchases of our series a common stock or series b common stock during the three months ended december 31 , 2011 .
december 31 , december 31 , december 31 , december 31 .

 |
| table | | december 31 2008 | december 31 2009 | december 31 2010 | december 31 2011
---------- | ---------------- | ---------------- | ---------------- | ----------------
disca      | $ 102.53         | $ 222.09         | $ 301.96         | $ 296.67
discb      | $ 78.53          | $ 162.82         | $ 225.95         | $ 217.56
disck      | $ 83.69          | $ 165.75         | $ 229.31         | $ 235.63
s&p 500    | $ 74.86          | $ 92.42          | $ 104.24         | $ 104.23
peer group | $ 68.79          | $ 100.70         | $ 121.35         | $ 138.19 |


| _id | dd4b89eec |
| title |  |
| text | gain or loss on ownership change in map results from contributions to map of certain environmental capital expenditures and leased property acquisitions funded by marathon and ashland .
in accordance with map 2019s limited liability company agreement , in certain instances , environmental capital expenditures and acquisitions of leased properties are funded by the original contributor of the assets , but no change in ownership interest may result from these contributions .

an excess of ashland funded improvements over marathon funded improvements results in a net gain and an excess of marathon funded improvements over ashland funded improvements results in a net loss .
cost of revenues increased by $ 5.822 billion in 2004 from 2003 and by $ 6.040 billion in 2003 from 2002 .
the increases are primarily in the rm&t segment and result from higher acquisition costs for crude oil , refined products , refinery charge and blend feedstocks and increased manufacturing expenses .

selling , general and administrative expenses increased by $ 105 million in 2004 from 2003 and by $ 97 million in 2003 from 2002 .
the increase in 2004 was primarily due to increased stock-based compensation and higher costs associated with business transformation and outsourcing .
our 2004 results were also impacted by start-up costs associated with the lng project in equatorial guinea and the increased cost of complying with governmental regulations .

the increase in 2003 was primarily due to increased employee benefit expenses ( caused by increased pension expense resulting from changes in actuarial assumptions and a decrease in realized returns on plan assets ) and other employee related costs .
additionally , during 2003 , we recorded a charge of $ 24 million related to organizational and business process changes .

inventory market valuation reserve ( 2018 2018imv 2019 2019 ) is established to reduce the cost basis of inventories to current market value .
generally , we will establish an imv reserve when crude oil prices fall below $ 22 per barrel .
the 2002 results of operations include credits to income from operations of $ 71 million , reversing the imv reserve at december 31 , 2001 .
net interest and other financial costs decreased by $ 25 million in 2004 from 2003 and by $ 82 million in 2003 from 2002 .

the decrease in 2004 is primarily due to an increase in interest income .
the decrease in 2003 is primarily due to an increase in capitalized interest related to increased long-term construction projects , the favorable effect of interest rate swaps , the favorable effect of a reduction in interest on tax deficiencies and increased interest income on investments .

additionally , included in net interest and other financing costs are foreign currency gains of $ 9 million , $ 13 million and $ 8 million for 2004 , 2003 and 2002 .
loss from early extinguishment of debt in 2002 was attributable to the retirement of $ 337 million aggregate principal amount of debt , resulting in a loss of $ 53 million .

minority interest in income of map , which represents ashland 2019s 38 percent ownership interest , increased by $ 230 million in 2004 from 2003 and by $ 129 million in 2003 from 2002 .
map income was higher in 2004 compared to 2003 and in 2003 compared to 2002 as discussed below in the rm&t segment .

minority interest in loss of equatorial guinea lng holdings limited , which represents gepetrol 2019s 25 percent ownership interest , was $ 7 million in 2004 , primarily resulting from gepetrol 2019s share of start-up costs associated with the lng project in equatorial guinea .
provision for income taxes increased by $ 143 million in 2004 from 2003 and by $ 215 million in 2003 from 2002 , primarily due to $ 388 million and $ 720 million increases in income before income taxes .

the effective tax rate for 2004 was 36.6 percent compared to 36.6 percent and 42.1 percent for 2003 and 2002 .
the higher rate in 2002 was due to the united kingdom enactment of a supplementary 10 percent tax on profits from the north sea oil and gas production , retroactively effective to april 17 , 2002 .
in 2002 , we recognized a one-time noncash deferred tax adjustment of $ 61 million as a result of the rate increase .
the following is an analysis of the effective tax rate for the periods presented: .

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

 |
| table | | 2004             | 2003             | 2002
------------------------------------------------------------- | ---------------- | ---------------- | ----------------
statutory tax rate                                            | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % )
effects of foreign operations ( a )                           | 1.3              | -0.4 ( 0.4 )     | 5.6
state and local income taxes after federal income tax effects | 1.6              | 2.2              | 3.9
other federal tax effects                                     | -1.3 ( 1.3 )     | -0.2 ( 0.2 )     | -2.4 ( 2.4 )
effective tax rate                                            | 36.6% ( 36.6 % ) | 36.6% ( 36.6 % ) | 42.1% ( 42.1 % ) |


| _id | dd4bbbd84 |
| title |  |
| text | notes to the consolidated financial statements union pacific corporation and subsidiary companies for purposes of this report , unless the context otherwise requires , all references herein to the 201ccorporation 201d , 201ccompany 201d , 201cupc 201d , 201cwe 201d , 201cus 201d , and 201cour 201d mean union pacific corporation and its subsidiaries , including union pacific railroad company , which will be separately referred to herein as 201cuprr 201d or the 201crailroad 201d .
1 .

1 .
nature of operations operations and segmentation 2013 we are a class i railroad operating in the u.s .
our network includes 31974 route miles , linking pacific coast and gulf coast ports with the midwest and eastern u.s .
gateways and providing several corridors to key mexican gateways .
we own 26012 miles and operate on the remainder pursuant to trackage rights or leases .

we serve the western two-thirds of the country and maintain coordinated schedules with other rail carriers for the handling of freight to and from the atlantic coast , the pacific coast , the southeast , the southwest , canada , and mexico .
export and import traffic is moved through gulf coast and pacific coast ports and across the mexican and canadian borders .
the railroad , along with its subsidiaries and rail affiliates , is our one reportable operating segment .

although we provide and review revenue by commodity group , we analyze the net financial results of the railroad as one segment due to the integrated nature of our rail network .
the following table provides freight revenue by commodity group : millions 2014 2013 2012 .

although our revenues are principally derived from customers domiciled in the u.s. , the ultimate points of origination or destination for some products transported by us are outside the u.s .
each of our commodity groups includes revenue from shipments to and from mexico .
included in the above table are revenues from our mexico business which amounted to $ 2.3 billion in 2014 , $ 2.1 billion in 2013 , and $ 1.9 billion in 2012 .

basis of presentation 2013 the consolidated financial statements are presented in accordance with accounting principles generally accepted in the u.s .
( gaap ) as codified in the financial accounting standards board ( fasb ) accounting standards codification ( asc ) .
2 .
significant accounting policies principles of consolidation 2013 the consolidated financial statements include the accounts of union pacific corporation and all of its subsidiaries .

investments in affiliated companies ( 20% ( 20 % ) to 50% ( 50 % ) owned ) are accounted for using the equity method of accounting .
all intercompany transactions are eliminated .
we currently have no less than majority-owned investments that require consolidation under variable interest entity requirements .
cash and cash equivalents 2013 cash equivalents consist of investments with original maturities of three months or less .

accounts receivable 2013 accounts receivable includes receivables reduced by an allowance for doubtful accounts .
the allowance is based upon historical losses , credit worthiness of customers , and current economic conditions .
receivables not expected to be collected in one year and the associated allowances are classified as other assets in our consolidated statements of financial position.

 |
| table | millions                | 2014    | 2013    | 2012
----------------------- | ------- | ------- | -------
agricultural products   | $ 3777  | $ 3276  | $ 3280
automotive              | 2103    | 2077    | 1807
chemicals               | 3664    | 3501    | 3238
coal                    | 4127    | 3978    | 3912
industrial products     | 4400    | 3822    | 3494
intermodal              | 4489    | 4030    | 3955
total freight revenues  | $ 22560 | $ 20684 | $ 19686
other revenues          | 1428    | 1279    | 1240
total operatingrevenues | $ 23988 | $ 21963 | $ 20926 |


| _id | dd4c35fb2 |
| title |  |
| text | management 2019s discussion and analysis 126 jpmorgan chase & co./2014 annual report while useful as a current view of credit exposure , the net fair value of the derivative receivables does not capture the potential future variability of that credit exposure .

to capture the potential future variability of credit exposure , the firm calculates , on a client-by-client basis , three measures of potential derivatives-related credit loss : peak , derivative risk equivalent ( 201cdre 201d ) , and average exposure ( 201cavg 201d ) .
these measures all incorporate netting and collateral benefits , where applicable .
peak exposure to a counterparty is an extreme measure of exposure calculated at a 97.5% ( 97.5 % ) confidence level .

dre exposure is a measure that expresses the risk of derivative exposure on a basis intended to be equivalent to the risk of loan exposures .
the measurement is done by equating the unexpected loss in a derivative counterparty exposure ( which takes into consideration both the loss volatility and the credit rating of the counterparty ) with the unexpected loss in a loan exposure ( which takes into consideration only the credit rating of the counterparty ) .

dre is a less extreme measure of potential credit loss than peak and is the primary measure used by the firm for credit approval of derivative transactions .
finally , avg is a measure of the expected fair value of the firm 2019s derivative receivables at future time periods , including the benefit of collateral .
avg exposure over the total life of the derivative contract is used as the primary metric for pricing purposes and is used to calculate credit capital and the cva , as further described below .

the three year avg exposure was $ 37.5 billion and $ 35.4 billion at december 31 , 2014 and 2013 , respectively , compared with derivative receivables , net of all collateral , of $ 59.4 billion and $ 51.3 billion at december 31 , 2014 and 2013 , respectively .
the fair value of the firm 2019s derivative receivables incorporates an adjustment , the cva , to reflect the credit quality of counterparties .

the cva is based on the firm 2019s avg to a counterparty and the counterparty 2019s credit spread in the credit derivatives market .
the primary components of changes in cva are credit spreads , new deal activity or unwinds , and changes in the underlying market environment .
the firm believes that active risk management is essential to controlling the dynamic credit risk in the derivatives portfolio .

in addition , the firm 2019s risk management process takes into consideration the potential impact of wrong-way risk , which is broadly defined as the potential for increased correlation between the firm 2019s exposure to a counterparty ( avg ) and the counterparty 2019s credit quality .
many factors may influence the nature and magnitude of these correlations over time .
to the extent that these correlations are identified , the firm may adjust the cva associated with that counterparty 2019s avg .

the firm risk manages exposure to changes in cva by entering into credit derivative transactions , as well as interest rate , foreign exchange , equity and commodity derivative transactions .
the accompanying graph shows exposure profiles to the firm 2019s current derivatives portfolio over the next 10 years as calculated by the dre and avg metrics .
the two measures generally show that exposure will decline after the first year , if no new trades are added to the portfolio .

the following table summarizes the ratings profile by derivative counterparty of the firm 2019s derivative receivables , including credit derivatives , net of other liquid securities collateral , for the dates indicated .
the ratings scale is based on the firm 2019s internal ratings , which generally correspond to the ratings as defined by s&p and moody 2019s .

ratings profile of derivative receivables rating equivalent 2014 2013 ( a ) december 31 , ( in millions , except ratios ) exposure net of all collateral % (  % ) of exposure net of all collateral exposure net of all collateral % (  % ) of exposure net of all collateral .

( a ) the prior period amounts have been revised to conform with the current period presentation.

 |
| table | rating equivalent december 31 ( in millions except ratios ) | rating equivalent exposure net of all collateral | rating equivalent % (  % ) of exposure net of all collateral | exposure net of all collateral | % (  % ) of exposure net of all collateral
----------------------------------------------------------- | ------------------------------------------------ | ------------------------------------------------------------ | ------------------------------ | ------------------------------------------
aaa/aaa to aa-/aa3                                          | $ 19202                                          | 32% ( 32 % )                                                 | $ 12953                        | 25% ( 25 % )
a+/a1 to a-/a3                                              | 13940                                            | 24                                                           | 12930                          | 25
bbb+/baa1 to bbb-/baa3                                      | 19008                                            | 32                                                           | 15220                          | 30
bb+/ba1 to b-/b3                                            | 6384                                             | 11                                                           | 6806                           | 13
ccc+/caa1 and below                                         | 837                                              | 1                                                            | 3415                           | 7
total                                                       | $ 59371                                          | 100% ( 100 % )                                               | $ 51324                        | 100% ( 100 % ) |


| _id | dd4bb3f9e |
| title |  |
| text | royal caribbean cruises ltd .
79 notes to the consolidated financial statements in 2012 , we determined the implied fair value of good- will for the pullmantur reporting unit was $ 145.5 mil- lion and recognized an impairment charge of $ 319.2 million based on a probability-weighted discounted cash flow model further discussed below .

this impair- ment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impair- ment of pullmantur related assets within our consoli- dated statements of comprehensive income ( loss ) .
during the fourth quarter of 2014 , we performed a qualitative assessment of whether it was more-likely- than-not that our royal caribbean international reporting unit 2019s fair value was less than its carrying amount before applying the two-step goodwill impair- ment test .

the qualitative analysis included assessing the impact of certain factors such as general economic conditions , limitations on accessing capital , changes in forecasted operating results , changes in fuel prices and fluctuations in foreign exchange rates .

based on our qualitative assessment , we concluded that it was more-likely-than-not that the estimated fair value of the royal caribbean international reporting unit exceeded its carrying value and thus , we did not pro- ceed to the two-step goodwill impairment test .

no indicators of impairment exist primarily because the reporting unit 2019s fair value has consistently exceeded its carrying value by a significant margin , its financial performance has been solid in the face of mixed economic environments and forecasts of operating results generated by the reporting unit appear suffi- cient to support its carrying value .
we also performed our annual impairment review of goodwill for pullmantur 2019s reporting unit during the fourth quarter of 2014 .

we did not perform a quali- tative assessment but instead proceeded directly to the two-step goodwill impairment test .
we estimated the fair value of the pullmantur reporting unit using a probability-weighted discounted cash flow model .
the principal assumptions used in the discounted cash flow model are projected operating results , weighted- average cost of capital , and terminal value .
signifi- cantly impacting these assumptions are the transfer of vessels from our other cruise brands to pullmantur .

the discounted cash flow model used our 2015 pro- jected operating results as a base .
to that base , we added future years 2019 cash flows assuming multiple rev- enue and expense scenarios that reflect the impact of different global economic environments beyond 2015 on pullmantur 2019s reporting unit .
we assigned a probability to each revenue and expense scenario .

we discounted the projected cash flows using rates specific to pullmantur 2019s reporting unit based on its weighted-average cost of capital .
based on the probability-weighted discounted cash flows , we deter- mined the fair value of the pullmantur reporting unit exceeded its carrying value by approximately 52% ( 52 % ) resulting in no impairment to pullmantur 2019s goodwill .

pullmantur is a brand targeted primarily at the spanish , portuguese and latin american markets , with an increasing focus on latin america .
the persistent economic instability in these markets has created sig- nificant uncertainties in forecasting operating results and future cash flows used in our impairment analyses .
we continue to monitor economic events in these markets for their potential impact on pullmantur 2019s business and valuation .

further , the estimation of fair value utilizing discounted expected future cash flows includes numerous uncertainties which require our significant judgment when making assumptions of expected revenues , operating costs , marketing , sell- ing and administrative expenses , interest rates , ship additions and retirements as well as assumptions regarding the cruise vacation industry 2019s competitive environment and general economic and business conditions , among other factors .

if there are changes to the projected future cash flows used in the impairment analyses , especially in net yields or if certain transfers of vessels from our other cruise brands to the pullmantur fleet do not take place , it is possible that an impairment charge of pullmantur 2019s reporting unit 2019s goodwill may be required .
of these factors , the planned transfers of vessels to the pullmantur fleet is most significant to the projected future cash flows .

if the transfers do not occur , we will likely fail step one of the impairment test .
note 4 .
intangible assets intangible assets are reported in other assets in our consolidated balance sheets and consist of the follow- ing ( in thousands ) : .

during the fourth quarter of 2014 , 2013 and 2012 , we performed the annual impairment review of pullmantur 2019s trademarks and trade names using a discounted cash flow model and the relief-from-royalty method to compare the fair value of these indefinite-lived intan- gible assets to its carrying value .
the royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry .

we used a dis- count rate comparable to the rate used in valuing the pullmantur reporting unit in our goodwill impairment test .
based on the results of our testing , we did not

 |
| table | | 2014             | 2013
-------------------------------------------------------------------------- | ---------------- | --------
indefinite-life intangible asset 2014pullmantur trademarks and trade names | $ 214112         | $ 204866
foreign currency translation adjustment                                    | -26074 ( 26074 ) | 9246
total                                                                      | $ 188038         | $ 214112 |


| _id | dd4c07df6 |
| title |  |
| text | shareowner return performance graph the following performance graph and related information shall not be deemed 201csoliciting material 201d or to be 201cfiled 201d with the sec , nor shall such information be incorporated by reference into any future filing under the securities act of 1933 or securities exchange act of 1934 , each as amended , except to the extent that the company specifically incorporates such information by reference into such filing .

the following graph shows a five year comparison of cumulative total shareowners 2019 returns for our class b common stock , the standard & poor 2019s 500 index , and the dow jones transportation average .

the comparison of the total cumulative return on investment , which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods , assumes that $ 100 was invested on december 31 , 2008 in the standard & poor 2019s 500 index , the dow jones transportation average , and our class b common stock. .

 |
| table | | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 107.75   | $ 140.39   | $ 145.84   | $ 151.44   | $ 221.91
standard & poor 2019s 500 index  | $ 100.00   | $ 126.45   | $ 145.49   | $ 148.55   | $ 172.30   | $ 228.09
dow jones transportation average | $ 100.00   | $ 118.59   | $ 150.30   | $ 150.31   | $ 161.56   | $ 228.42 |


| _id | dd4b9d410 |
| title |  |
| text | the activity related to the restructuring liability for 2004 is as follows ( in thousands ) : non-operating items interest income increased $ 1.7 million to $ 12.0 million in 2005 from $ 10.3 million in 2004 .
the increase was mainly the result of higher returns on invested funds .

interest expense decreased $ 1.0 million , or 5% ( 5 % ) , to $ 17.3 million in 2005 from $ 18.3 million in 2004 as a result of the exchange of newly issued stock for a portion of our outstanding convertible debt in the second half of 2005 .
in addition , as a result of the issuance during 2005 of common stock in exchange for convertible subordinated notes , we recorded a non- cash charge of $ 48.2 million .

this charge related to the incremental shares issued in the transactions over the number of shares that would have been issued upon the conversion of the notes under their original terms .

liquidity and capital resources we have incurred operating losses since our inception and historically have financed our operations principally through public and private offerings of our equity and debt securities , strategic collaborative agreements that include research and/or development funding , development milestones and royalties on the sales of products , investment income and proceeds from the issuance of stock under our employee benefit programs .

at december 31 , 2006 , we had cash , cash equivalents and marketable securities of $ 761.8 million , which was an increase of $ 354.2 million from $ 407.5 million at december 31 , 2005 .

the increase was primarily a result of : 2022 $ 313.7 million in net proceeds from our september 2006 public offering of common stock ; 2022 $ 165.0 million from an up-front payment we received in connection with signing the janssen agreement ; 2022 $ 52.4 million from the issuance of common stock under our employee benefit plans ; and 2022 $ 30.0 million from the sale of shares of altus pharmaceuticals inc .
common stock and warrants to purchase altus common stock .

these cash inflows were partially offset by the significant cash expenditures we made in 2006 related to research and development expenses and sales , general and administrative expenses .
capital expenditures for property and equipment during 2006 were $ 32.4 million .
at december 31 , 2006 , we had $ 42.1 million in aggregate principal amount of the 2007 notes and $ 59.6 million in aggregate principal amount of the 2011 notes outstanding .

the 2007 notes are due in september 2007 and are convertible into common stock at the option of the holder at a price equal to $ 92.26 per share , subject to adjustment under certain circumstances .
in february 2007 , we announced that we will redeem our 2011 notes on march 5 , 2007 .
the 2011 notes are convertible into shares of our common stock at the option of the holder at a price equal to $ 14.94 per share .

we expect the holders of the 2011 notes will elect to convert their notes into stock , in which case we will issue approximately 4.0 million .
we will be required to repay any 2011 notes that are not converted at the rate of $ 1003.19 per $ 1000 principal amount , which includes principal and interest that will accrue to the redemption date .

liability as of december 31 , payments in 2004 cash received from sublease , net of operating costs in 2004 additional charge in liability as of december 31 , lease restructuring liability and other operating lease liability $ 69526 $ ( 31550 ) $ 293 $ 17574 $ 55843 .

the activity related to the restructuring liability for 2004 is as follows ( in thousands ) : non-operating items interest income increased $ 1.7 million to $ 12.0 million in 2005 from $ 10.3 million in 2004 .
the increase was mainly the result of higher returns on invested funds .

interest expense decreased $ 1.0 million , or 5% ( 5 % ) , to $ 17.3 million in 2005 from $ 18.3 million in 2004 as a result of the exchange of newly issued stock for a portion of our outstanding convertible debt in the second half of 2005 .
in addition , as a result of the issuance during 2005 of common stock in exchange for convertible subordinated notes , we recorded a non- cash charge of $ 48.2 million .

this charge related to the incremental shares issued in the transactions over the number of shares that would have been issued upon the conversion of the notes under their original terms .

liquidity and capital resources we have incurred operating losses since our inception and historically have financed our operations principally through public and private offerings of our equity and debt securities , strategic collaborative agreements that include research and/or development funding , development milestones and royalties on the sales of products , investment income and proceeds from the issuance of stock under our employee benefit programs .

at december 31 , 2006 , we had cash , cash equivalents and marketable securities of $ 761.8 million , which was an increase of $ 354.2 million from $ 407.5 million at december 31 , 2005 .

the increase was primarily a result of : 2022 $ 313.7 million in net proceeds from our september 2006 public offering of common stock ; 2022 $ 165.0 million from an up-front payment we received in connection with signing the janssen agreement ; 2022 $ 52.4 million from the issuance of common stock under our employee benefit plans ; and 2022 $ 30.0 million from the sale of shares of altus pharmaceuticals inc .
common stock and warrants to purchase altus common stock .

these cash inflows were partially offset by the significant cash expenditures we made in 2006 related to research and development expenses and sales , general and administrative expenses .
capital expenditures for property and equipment during 2006 were $ 32.4 million .
at december 31 , 2006 , we had $ 42.1 million in aggregate principal amount of the 2007 notes and $ 59.6 million in aggregate principal amount of the 2011 notes outstanding .

the 2007 notes are due in september 2007 and are convertible into common stock at the option of the holder at a price equal to $ 92.26 per share , subject to adjustment under certain circumstances .
in february 2007 , we announced that we will redeem our 2011 notes on march 5 , 2007 .
the 2011 notes are convertible into shares of our common stock at the option of the holder at a price equal to $ 14.94 per share .

we expect the holders of the 2011 notes will elect to convert their notes into stock , in which case we will issue approximately 4.0 million .
we will be required to repay any 2011 notes that are not converted at the rate of $ 1003.19 per $ 1000 principal amount , which includes principal and interest that will accrue to the redemption date .

liability as of december 31 , payments in 2004 cash received from sublease , net of operating costs in 2004 additional charge in liability as of december 31 , lease restructuring liability and other operating lease liability $ 69526 $ ( 31550 ) $ 293 $ 17574 $ 55843

 |
| table | | liability as of december 31 2003 | cash payments in 2004 | cash received from sublease net of operating costs in 2004 | additional charge in 2004 | liability as of december 31 2004
----------------------------------------------------------------- | -------------------------------- | --------------------- | ---------------------------------------------------------- | ------------------------- | --------------------------------
lease restructuring liability and other operating lease liability | $ 69526                          | $ -31550 ( 31550 )    | $ 293                                                      | $ 17574                   | $ 55843 |


| _id | dd4be238a |
| title |  |
| text | management 2019s discussion and analysis supplemental financial information and disclosures income tax matters effective tax rate from continuing operations .

adjusted effective income tax rate 2014 non-gaap1 30.8% ( 30.8 % ) 31.6% ( 31.6 % ) 32.3% ( 32.3 % ) 1 .
beginning in 2017 , income tax consequences associated with employee share-based awards are recognized in provision for income taxes in the income statements but are excluded from the intermittent net discrete tax provisions ( benefits ) adjustment as we anticipate conversion activity each year .

see note 2 to the financial statements on the adoption of the accounting update improvements to employee share-based payment accounting .
for 2015 , adjusted effective income tax rate also excludes dva .
for further information on non-gaap measures , see 201cselected non-gaap financial information 201d herein .

the effective tax rate from continuing operations for 2017 included an intermittent net discrete tax provision of $ 968 million , primarily related to the impact of the tax act , partially offset by net discrete tax benefits primarily associ- ated with the remeasurement of reserves and related interest due to new information regarding the status of multi-year irs tax examinations .
the tax act , enacted on december 22 , 2017 , significantly revised u.s .

corporate income tax law by , among other things , reducing the corporate income tax rate to 21% ( 21 % ) , and implementing a modified territorial tax system that includes a one-time transition tax on deemed repatriated earnings of non-u.s .
subsidiaries ; imposes a minimum tax on global intangible low-taxed income ( 201cgilti 201d ) and an alternative base erosion and anti-abuse tax ( 201cbeat 201d ) on u.s .
corpora- tions that make deductible payments to non-u.s .

related persons in excess of specified amounts ; and broadens the tax base by partially or wholly eliminating tax deductions for certain historically deductible expenses ( e.g. , fdic premiums and executive compensation ) .
we recorded an approximate $ 1.2 billion net discrete tax provision as a result of the enactment of the tax act , primarily from the remeasurement of certain deferred tax assets using the lower enacted corporate tax rate .

this provi- sion incorporates the best available information as of the enactment date as well as assumptions made based upon our current interpretation of the tax act .
our estimates may change as we receive additional clarification and implementa- tion guidance from the u.s .
treasury department and as the interpretation of the tax act evolves over time .
the ultimate impact of the income tax effects of the tax act will be deter- mined in connection with the preparation of our u.s .

consoli- dated federal income tax return .
taking into account our current assumptions , estimates and interpretations related to the tax act and other factors , we expect our effective tax rate from continuing operations for 2018 to be approximately 22% ( 22 % ) to 25% ( 25 % ) , depending on factors such as the geographic mix of earnings and employee share- based awards ( see 201cforward-looking statements 201d ) .

subsequent to the release of the firm 2019s 2017 earnings on january 18 , 2018 , certain estimates related to the net discrete tax provision associated with the enactment of the tax act were revised , resulting in a $ 43 million increase in the provi- sion for income taxes and a reallocation of impacts among segments .
this decreased diluted eps and diluted eps from continuing operations by $ 0.03 and $ 0.02 in the fourth quarter and year ended december 31 , 2017 , respectively .

on a business segment basis , the change resulted in an $ 89 million increase in provision for income taxes for wealth management , a $ 45 million decrease for institutional securi- ties , and a $ 1 million decrease for investment management .

the effective tax rate from continuing operations for 2016 included intermittent net discrete tax benefits of $ 68 million , primarily related to the remeasurement of reserves and related interest due to new information regarding the status of multi- year irs tax examinations , partially offset by adjustments for other tax matters .

the effective tax rate from continuing operations for 2015 included intermittent net discrete tax benefits of $ 564 million , primarily associated with the repatriation of non-u.s .
earn- ings at a cost lower than originally estimated due to an internal restructuring to simplify the legal entity organization in the u.k .
u.s .
bank subsidiaries we provide loans to a variety of customers , from large corpo- rate and institutional clients to high net worth individuals , primarily through our u.s .

bank subsidiaries , morgan stanley bank n.a .
( 201cmsbna 201d ) and morgan stanley private bank , national association ( 201cmspbna 201d ) ( collectively , 201cu.s .
bank subsidiaries 201d ) .
the lending activities in the institutional securities business segment primarily include loans and lending commitments to corporate clients .
the lending activ- ities in the wealth management business segment primarily include securities-based lending that allows clients to borrow december 2017 form 10-k 52

 |
| table | | 2017             | 2016             | 2015
----------------------------------------------- | ---------------- | ---------------- | ----------------
u.s . gaap                                      | 40.1% ( 40.1 % ) | 30.8% ( 30.8 % ) | 25.9% ( 25.9 % )
adjusted effective income taxrate 2014non-gaap1 | 30.8% ( 30.8 % ) | 31.6% ( 31.6 % ) | 32.3% ( 32.3 % ) |


| _id | dd4ba122c |
| title |  |
| text | on may 20 , 2015 , aon plc issued $ 600 million of 4.750% ( 4.750 % ) senior notes due may 2045 .
the 4.750% ( 4.750 % ) notes due may 2045 are fully and unconditionally guaranteed by aon corporation .
we used the proceeds of the issuance for general corporate purposes .
on september 30 , 2015 , $ 600 million of 3.50% ( 3.50 % ) senior notes issued by aon corporation matured and were repaid .
on november 13 , 2015 , aon plc issued $ 400 million of 2.80% ( 2.80 % ) senior notes due march 2021 .

the 2.80% ( 2.80 % ) notes due march 2021 are fully and unconditionally guaranteed by aon corporation .
we used the proceeds of the issuance for general corporate purposes .
credit facilities as of december 31 , 2015 , we had two committed credit facilities outstanding : our $ 400 million u.s .
credit facility expiring in march 2017 ( the "2017 facility" ) and $ 900 million multi-currency u.s .
credit facility expiring in february 2020 ( the "2020 facility" ) .

the 2020 facility was entered into on february 2 , 2015 and replaced the previous 20ac650 million european credit facility .
each of these facilities is intended to support our commercial paper obligations and our general working capital needs .

in addition , each of these facilities includes customary representations , warranties and covenants , including financial covenants that require us to maintain specified ratios of adjusted consolidated ebitda to consolidated interest expense and consolidated debt to adjusted consolidated ebitda , tested quarterly .

at december 31 , 2015 , we did not have borrowings under either the 2017 facility or the 2020 facility , and we were in compliance with the financial covenants and all other covenants contained therein during the twelve months ended december 31 , 2015 .
effective february 2 , 2016 , the 2020 facility terms were extended for 1 year and will expire in february 2021 our total debt-to-ebitda ratio at december 31 , 2015 and 2014 , is calculated as follows: .

we use ebitda , as defined by our financial covenants , as a non-gaap measure .
this supplemental information related to ebitda represents a measure not in accordance with u.s .
gaap and should be viewed in addition to , not instead of , our consolidated financial statements and notes thereto .

shelf registration statement on september 3 , 2015 , we filed a shelf registration statement with the sec , registering the offer and sale from time to time of an indeterminate amount of , among other securities , debt securities , preference shares , class a ordinary shares and convertible securities .
our ability to access the market as a source of liquidity is dependent on investor demand , market conditions and other factors.

 |
| table | years ended december 31,          | 2015 | 2014
--------------------------------- | ---- | ----
net income                        | 1422 | 1431
interest expense                  | 273  | 255
income taxes                      | 267  | 334
depreciation of fixed assets      | 229  | 242
amortization of intangible assets | 314  | 352
total ebitda                      | 2505 | 2614
total debt                        | 5737 | 5582
total debt-to-ebitda ratio        | 2.3  | 2.1 |


| _id | dd4b98e4c |
| title |  |
| text | morgan stanley notes to consolidated financial statements 2014 ( continued ) lending commitments .
primary lending commitments are those that are originated by the company whereas secondary lending commitments are purchased from third parties in the market .
the commitments include lending commitments that are made to investment grade and non-investment grade companies in connection with corporate lending and other business activities .
commitments for secured lending transactions .

commitments for secured lending transactions .
secured lending commitments are extended by the company to companies and are secured by real estate or other physical assets of the borrower .
loans made under these arrangements typically are at variable rates and generally provide for over-collateralization based upon the creditworthiness of the borrower .
forward starting reverse repurchase agreements .

forward starting reverse repurchase agreements .
the company has entered into forward starting securities purchased under agreements to resell ( agreements that have a trade date at or prior to december 31 , 2013 and settle subsequent to period-end ) that are primarily secured by collateral from u.s .
government agency securities and other sovereign government obligations .
commercial and residential mortgage-related commitments .

the company enters into forward purchase contracts involving residential mortgage loans , residential mortgage lending commitments to individuals and residential home equity lines of credit .
in addition , the company enters into commitments to originate commercial and residential mortgage loans .
underwriting commitments .
the company provides underwriting commitments in connection with its capital raising sources to a diverse group of corporate and other institutional clients .

other lending commitments .
other commitments generally include commercial lending commitments to small businesses and commitments related to securities-based lending activities in connection with the company 2019s wealth management business segment .

the company sponsors several non-consolidated investment funds for third-party investors where the company typically acts as general partner of , and investment advisor to , these funds and typically commits to invest a minority of the capital of such funds , with subscribing third-party investors contributing the majority .

the company 2019s employees , including its senior officers , as well as the company 2019s directors , may participate on the same terms and conditions as other investors in certain of these funds that the company forms primarily for client investment , except that the company may waive or lower applicable fees and charges for its employees .
the company has contractual capital commitments , guarantees , lending facilities and counterparty arrangements with respect to these investment funds .

premises and equipment .
the company has non-cancelable operating leases covering premises and equipment ( excluding commodities operating leases , shown separately ) .
at december 31 , 2013 , future minimum rental commitments under such leases ( net of subleases , principally on office rentals ) were as follows ( dollars in millions ) : year ended operating premises leases .

 |
| table | year ended | operating premises leases
---------- | -------------------------
2014       | $ 672
2015       | 656
2016       | 621
2017       | 554
2018       | 481
thereafter | 2712 |


| _id | dd4bace88 |
| title |  |
| text | other off-balance sheet commitments lease commitments the company leases various equipment and facilities , including retail space , under noncancelable operating lease arrangements .
the company does not currently utilize any other off-balance sheet financing arrangements .
the major facility leases are typically for terms not exceeding 10 years and generally provide renewal options for terms not exceeding five additional years .

leases for retail space are for terms ranging from five to 20 years , the majority of which are for 10 years , and often contain multi-year renewal options .
as of september 29 , 2012 , the company 2019s total future minimum lease payments under noncancelable operating leases were $ 4.4 billion , of which $ 3.1 billion related to leases for retail space .

rent expense under all operating leases , including both cancelable and noncancelable leases , was $ 488 million , $ 338 million and $ 271 million in 2012 , 2011 and 2010 , respectively .
future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of september 29 , 2012 , are as follows ( in millions ) : .

other commitments as of september 29 , 2012 , the company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $ 21.1 billion .

in addition to the off-balance sheet commitments mentioned above , the company had outstanding obligations of $ 988 million as of september 29 , 2012 , which were comprised mainly of commitments to acquire capital assets , including product tooling and manufacturing process equipment , and commitments related to advertising , research and development , internet and telecommunications services and other obligations .

contingencies the company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and have not been fully adjudicated , certain of which are discussed in part i , item 3 of this form 10-k under the heading 201clegal proceedings 201d and in part i , item 1a of this form 10-k under the heading 201crisk factors . 201d in the opinion of management , there was not at least a reasonable possibility the company may have incurred a material loss , or a material loss

incurred a material loss , or a material loss in excess of a recorded accrual , with respect to loss contingencies .

however , the outcome of litigation is inherently uncertain .
therefore , although management considers the likelihood of such an outcome to be remote , if one or more of these legal matters were resolved against the company in a reporting period for amounts in excess of management 2019s expectations , the company 2019s consolidated financial statements for that reporting period could be materially adversely affected .
apple inc .
vs samsung electronics co. , ltd , et al .

vs samsung electronics co. , ltd , et al .
on august 24 , 2012 , a jury returned a verdict awarding the company $ 1.05 billion in its lawsuit against samsung electronics and affiliated parties in the united states district court , northern district of california , san jose division .
because the award is subject to entry of final judgment and may be subject to appeal , the company has not recognized the award in its consolidated financial statements for the year ended september 29 , 2012.

 |
| table | 2013                         | $ 516
---------------------------- | ------
2014                         | 556
2015                         | 542
2016                         | 513
2017                         | 486
thereafter                   | 1801
total minimum lease payments | $ 4414 |


| _id | dd4c4c726 |
| title |  |
| text | the following table summarizes the short-term borrowing activity for awcc for the years ended december 31: .

the credit facility requires the company to maintain a ratio of consolidated debt to consolidated capitalization of not more than 0.70 to 1.00 .
the ratio as of december 31 , 2017 was 0.59 to 1.00 .
none of the company 2019s borrowings are subject to default or prepayment as a result of a downgrading of securities , although such a downgrading could increase fees and interest charges under the company 2019s credit facility .

as part of the normal course of business , the company routinely enters contracts for the purchase and sale of water , energy , fuels and other services .
these contracts either contain express provisions or otherwise permit the company and its counterparties to demand adequate assurance of future performance when there are reasonable grounds for doing so .

in accordance with the contracts and applicable contract law , if the company is downgraded by a credit rating agency , especially if such downgrade is to a level below investment grade , it is possible that a counterparty would attempt to rely on such a downgrade as a basis for making a demand for adequate assurance of future performance .
depending on the company 2019s net position with the counterparty , the demand could be for the posting of collateral .

in the absence of expressly agreed provisions that specify the collateral that must be provided , the obligation to supply the collateral requested will be a function of the facts and circumstances of the company 2019s situation at the time of the demand .

if the company can reasonably claim that it is willing and financially able to perform its obligations , it may be possible that no collateral would need to be posted or that only an amount equal to two or three months of future payments should be sufficient .
the company does not expect to post any collateral which will have a material adverse impact on the company 2019s results of operations , financial position or cash flows .

note 12 : general taxes the following table summarizes the components of general tax expense for the years ended december 31 : 2017 2016 2015 gross receipts and franchise .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$ 110 $ 106 $ 99 property and capital stock .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
105 106 98 payroll .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
31 32 31 other general .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
13 14 15 total general taxes .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$ 259 $ 258 $ 243

 |
| table | | 2017             | 2016
------------------------------------------------------- | ---------------- | ----------------
average borrowings                                      | $ 779            | $ 850
maximum borrowings outstanding                          | 1135             | 1016
weighted average interest rates computed on daily basis | 1.24% ( 1.24 % ) | 0.78% ( 0.78 % )
weighted average interest rates as of december 31       | 1.61% ( 1.61 % ) | 0.98% ( 0.98 % ) |


| _id | dd4c4f084 |
| title |  |
| text | 18 .
financial instruments : derivatives and hedging financial accounting standards board 2019s statement no .
133 , 201caccounting for derivative instruments and hedging activities , 201d ( 201csfas 133 201d ) which became effective january 1 , 2001 requires the company to recognize all derivatives on the balance sheet at fair value .
derivatives that are not hedges must be adjusted to fair value through income .

if a derivative is a hedge , depending on the nature of the hedge , changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset , liability , or firm commitment through earnings , or recognized in other comprehensive income until the hedged item is recognized in earnings .
the ineffective portion of a derivative 2019s change in fair value will be immediately recognized in earnings .

the company recorded a cumulative effect adjustment upon the adoption of sfas 133 .
this cumulative effect adjustment , of which the intrinsic value of the hedge was recorded in other comprehensive income ( $ 811 ) and the time value component was recorded in the state- ment of income ( $ 532 ) , was an unrealized loss of $ 1343 .
the transition amounts were determined based on the interpretive guidance issued by the fasb at that date .

the fasb continues to issue interpretive guidance that could require changes in the company 2019s application of the standard and adjustments to the transition amounts .
sfas 133 may increase or decrease reported net income and stockholders 2019 equity prospectively , depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items , but will have no effect on cash flows .

the following table summarizes the notional and fair value of the company 2019s derivative financial instruments at december 31 , 2001 .
the notional is an indication of the extent of the company 2019s involvement in these instruments at that time , but does not represent exposure to credit , interest rate or market risks .
notional strike fair value rate maturity value .

on december 31 , 2001 , the derivative instruments were reported as an obligation at their fair value of $ 3205 .
offsetting adjustments are represented as deferred gains or losses in accumulated other comprehensive loss of $ 2911 .
currently , all derivative instruments are designated as hedging instruments .

over time , the unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as interest expense in the same periods in which the hedged interest payments affect earnings .
the company estimates that approximately $ 1093 of the current balance held in accumulated other comprehensive loss will be reclassified into earnings within the next twelve months .

the company is not currently hedging exposure to variability in future cash flows for forecasted transactions other than anticipated future interest payments on existing debt .
19 .
environmental matters management of the company believes that the properties are in compliance in all material respects with applicable federal , state and local ordinances and regulations regarding environmental issues .

management is not aware of any environmental liability that it believes would have a materially adverse impact on the company 2019s financial position , results of operations or cash flows .
management is unaware of any instances in which it would incur significant environmental cost if any of the properties were sold .
20 .

20 .
segment information the company is a reit engaged in owning , managing , leasing and repositioning office properties in manhattan and has two reportable segments , office real estate and structured finance investments .
the company evaluates real estate performance and allocates resources based on net operating income .
the company 2019s real estate portfolio is located in one geo- graphical market of manhattan .

the primary sources of revenue are generated from tenant rents and escalations and reimburse- ment revenue .
real estate property operating expenses consist primarily of security , maintenance , utility costs , real estate taxes and ground rent expense ( at certain applicable properties ) .

at december 31 , 2001 and 2000 , of the total assets of $ 1371577 and $ 1161154 , $ 1182939 and $ 1109861 repre- sented real estate assets and $ 188638 and $ 51293 represented structured finance investments , respectively .

for the years ended december 31 , 2001 , 2000 and 1999 , of the total revenues of $ 257685 , $ 230323 and $ 206017 , $ 240316 , $ 217052 and $ 200751 represented total revenues from real estate assets and $ 17369 , $ 13271 and $ 5266 represented total revenues from structured finance investments .

for the years ended december 31 , 2001 , 2000 and 1999 , of the total net operating income of $ 63607 , $ 53152 and $ 48966 , $ 46238 , $ 39881 and $ 43700 represented net operat- ing income from real estate assets and $ 17369 , $ 13271 and $ 5266 represents net operating income from structured finance investments , respectively .

the company does not allocate mar- keting , general and administrative expenses or interest expense to the structured finance segment , since it bases performance on the individual segments prior to allocating marketing , general and administrative expenses and interest expense .
all other expenses relate solely to the real estate assets .
there were no transactions between the above two segments .
sl green realty corp .

sl green realty corp .
notes to consolidated financial statements ( continued ) december 31 , 2001 ( dollars in thousands , except per share data )

 |
| table | | notional value | strike rate        | maturity | fair value
-------------------- | -------------- | ------------------ | -------- | ----------------
interest rate collar | $ 70000        | 6.580% ( 6.580 % ) | 11/2004  | $ -4096 ( 4096 )
interest rate swap   | $ 65000        | 4.010              | 8/2005   | $ 891 |


| _id | dd4bc28d2 |
| title |  |
| text | management 2019s discussion and analysis of increased volumes in our performance and applied coatings , optical and specialty materials and glass reportable business segments was offset by volume declines in the commodity chemicals reportable business segment .
the volume decline in the commodity chemicals reportable business segment was due in part to lost sales resulting from the impact of hurricane rita , as discussed below .

cost of sales as a percentage of sales increased to 63.5% ( 63.5 % ) as compared to 63.1% ( 63.1 % ) in 2004 .
inflation , including higher coatings raw material costs and higher energy costs in our commodity chemicals and glass reportable business segments increased our cost of sales .
selling , general and administrative expense declined slightly as a percentage of sales to 17.4% ( 17.4 % ) despite increasing by $ 56 million in 2005 .

these costs increased primarily due to increased advertising in our optical products operating segment and higher expenses due to store expansions in our architectural coatings operating segment .
interest expense declined $ 9 million in 2005 , reflecting the year over year reduction in the outstanding debt balance of $ 80 million .

other charges increased $ 284 million in 2005 primarily due to pretax charges of $ 132 million related to the marvin legal settlement , net of $ 18 million in insurance recoveries , $ 61 million for the federal glass class action antitrust legal settlement , $ 34 million of direct costs related to the impact of hurricanes rita and katrina , $ 27 million for an asset impairment charge in our fine chemicals operating segment , $ 19 million for debt refinancing costs and an increase of $ 12 million for

costs and an increase of $ 12 million for environmental remediation costs .

net income and earnings per share 2013 assuming dilution for 2005 were $ 596 million and $ 3.49 respectively , compared to $ 683 million and $ 3.95 , respectively , for 2004 .

net income in 2005 included aftertax charges of $ 117 million , or 68 cents a share , for legal settlements net of insurance ; $ 21 million , or 12 cents a share for direct costs related to the impact of hurricanes katrina and rita ; $ 17 million , or 10 cents a share related to an asset impairment charge related to our fine chemicals business ; and $ 12 million , or 7 cents a share , for debt refinancing costs .

the legal settlements net of insurance include aftertax charges of $ 80 million for the marvin legal settlement , net of insurance recoveries , and $ 37 million for the impact of the federal glass class action antitrust legal settlement .

net income for 2005 and 2004 included an aftertax charge of $ 13 million , or 8 cents a share , and $ 19 million , or 11 cents a share , respectively , to reflect the net increase in the current value of the company 2019s obligation relating to asbestos claims under the ppg settlement arrangement .

results of reportable business segments net sales segment income ( millions ) 2005 2004 2005 2004 industrial coatings $ 2921 $ 2818 $ 284 $ 338 performance and applied coatings 2668 2478 464 451 optical and specialty materials 867 805 158 186 .

sales of industrial coatings increased $ 103 million or 4% ( 4 % ) in 2005 .
sales increased 2% ( 2 % ) due to higher selling prices in our industrial and packaging coatings businesses and 2% ( 2 % ) due to the positive effects of foreign currency translation .
volume was flat year over year as increased volume in automotive coatings was offset by lower volume in industrial and packaging coatings .
segment income decreased $ 54 million in 2005 .

segment income decreased $ 54 million in 2005 .
the decrease in segment income was due to the adverse impact of inflation , including raw materials costs increases of about $ 170 million , which more than offset the benefits of higher selling prices , improved sales margin mix , formula cost reductions , lower manufacturing costs and higher other income .
performance and applied coatings sales increased $ 190 million or 8% ( 8 % ) in 2005 .

sales increased 4% ( 4 % ) due to higher selling prices in all three operating segments , 3% ( 3 % ) due to increased volumes as increases in our aerospace and architectural coatings businesses exceeded volume declines in automotive refinish , and 1% ( 1 % ) due to the positive effects of foreign currency translation .
performance and applied coatings segment income increased $ 13 million in 2005 .

segment income increased due to the impact of increased sales volumes described above and higher other income , which combined to offset the negative impacts of higher overhead costs to support the growth in these businesses , particularly in the architectural coatings business , and higher manufacturing costs .
the impact of higher selling prices fully offset the adverse impact of inflation , including raw materials cost increases of about $ 75 million .

optical and specialty materials sales increased $ 62 million or 8% ( 8 % ) .
sales increased 8% ( 8 % ) due to higher sales volumes in our optical products and silica businesses , which offset lower sales volumes in our fine chemicals business .
sales increased 1% ( 1 % ) due to an acquisition in our optical products business and decreased 1% ( 1 % ) due to lower pricing .
segment income decreased $ 28 million .

segment income decreased $ 28 million .
the primary factor decreasing segment income was the $ 27 million impairment charge related to our fine chemicals business .
the impact of higher sales volumes described above was offset by higher inflation , including increased energy costs ; lower selling prices ; increased overhead costs in our optical products business to support growth 24 2006 ppg annual report and form 10-k 4282_txt

 |
| table | ( millions )                     | net sales 2005 | net sales 2004 | net sales 2005 | 2004
-------------------------------- | -------------- | -------------- | -------------- | -----
industrial coatings              | $ 2921         | $ 2818         | $ 284          | $ 338
performance and applied coatings | 2668           | 2478           | 464            | 451
optical and specialty materials  | 867            | 805            | 158            | 186
commodity chemicals              | 1531           | 1229           | 313            | 113
glass                            | 2214           | 2183           | 123            | 166 |


| _id | dd4c4d342 |
| title |  |
| text | revenues by segment the table below summarizes our revenues by reporting segment ( in millions ) : .

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

ifs also includes corporate liquidity and wealth management solutions acquired in the sungard acquisition .
clients in this segment include regional and community banks , credit unions and commercial lenders , as well as government institutions , merchants and other commercial organizations .
this market is primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenues .

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

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

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

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

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

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

2022 fraud , risk management and compliance solutions.ff our decision solutions offer a spectrum of options that cover the account lifecycle from helping to identify qualified account applicants to managing existing customer accounts and fraud .
our applications include know-your-customer , new account decisioning and opening , account and transaction management , fraud management and collections .

our risk management services use our proprietary risk management models and data sources to assist in detecting fraud and assessing the risk of opening a new account .
our systems use a combination of advanced authentication procedures , predictive analytics , artificial intelligence modeling and proprietary and shared databases to assess and detect fraud risk for deposit transactions for financial institutions .

we also provide outsourced risk management and compliance solutions that are configt urable to a client's regulatory and risk management requirements.

 |
| table | | 2016   | 2015   | 2014
--------------------------- | ------ | ------ | ------
ifs                         | $ 4566 | $ 3846 | $ 3679
gfs                         | 4250   | 2360   | 2198
corporate & other           | 425    | 390    | 536
total consolidated revenues | $ 9241 | $ 6596 | $ 6413 |


| _id | dd498048e |
| title |  |
| text | contingent consideration of up to $ 13.8 million .
the contingent consideration arrangement requires additional cash payments to the former equity holders of lyric upon the achievement of certain technological and product development milestones payable during the period from june 2011 through june 2016 .
the company estimated the fair value of the contingent consideration arrangement utilizing the income approach .

changes in the fair value of the contingent consideration subsequent to the acquisition date primarily driven by assumptions pertaining to the achievement of the defined milestones will be recognized in operating income in the period of the estimated fair value change .
as of october 29 , 2011 , no contingent payments have been made and the fair value of the contingent consideration was approximately $ 14.0 million .

the company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition , resulting in the recognition of $ 12.2 million of ipr&d , $ 18.9 million of goodwill and $ 3.3 million of net deferred tax liabilities .
the goodwill recognized is attributable to future technologies that have yet to be determined as well as the assembled workforce of lyric .

future technologies do not meet the criteria for recognition separately from goodwill because they are a part of future development and growth of the business .
none of the goodwill is expected to be deductible for tax purposes .
in addition , the company will be obligated to pay royalties to the former equity holders of lyric on revenue recognized from the sale of lyric products and licenses through the earlier of 20 years or the accrual of a maximum of $ 25 million .

royalty payments to lyric employees require post-acquisition services to be rendered and , as such , the company will record these amounts as compensation expense in the related periods .
as of october 29 , 2011 , no royalty payments have been made .
the company recognized $ 0.2 million of acquisition-related costs that were expensed in the third quarter of fiscal 2011 .
these costs are included in operating expenses in the consolidated statement of income .

the company has not provided pro forma results of operations for integrant , audioasics and lyric herein as they were not material to the company on either an individual or an aggregate basis .
the company included the results of operations of each acquisition in its consolidated statement of income from the date of such acquisition .
7 .
deferred compensation plan investments investments in the analog devices , inc .
deferred compensation plan ( the deferred compensation plan ) are classified as trading .

the components of the investments as of october 29 , 2011 and october 30 , 2010 were as follows: .

the fair values of these investments are based on published market quotes on october 29 , 2011 and october 30 , 2010 , respectively .
adjustments to the fair value of , and income pertaining to , deferred compensation plan investments are recorded in operating expenses .
gross realized and unrealized gains and losses from trading securities were not material in fiscal 2011 , 2010 or 2009 .

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

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

 |
| table | | 2011    | 2010
-------------------------------------------- | ------- | ------
money market funds                           | $ 17187 | $ 1840
mutual funds                                 | 9223    | 6850
total deferred compensation plan investments | $ 26410 | $ 8690 |


| _id | dd4b9f292 |
| title |  |
| text | note 8 2013 debt our long-term debt consisted of the following ( in millions ) : .

in december 2012 , we issued notes totaling $ 1.3 billion with a fixed interest rate of 4.07% ( 4.07 % ) maturing in december 2042 ( the new notes ) in exchange for outstanding notes totaling $ 1.2 billion with interest rates ranging from 5.50% ( 5.50 % ) to 8.50% ( 8.50 % ) maturing in 2023 to 2040 ( the old notes ) .
in connection with the exchange , we paid a premium of $ 393 million , of which $ 225 million was paid in cash and $ 168 million was in the form of new notes .

this premium , in addition to $ 194 million in remaining unamortized discounts related to the old notes , will be amortized as additional interest expense over the term of the new notes using the effective interest method .
we may , at our option , redeem some or all of the new notes at any time by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest .

interest on the new notes is payable on june 15 and december 15 of each year , beginning on june 15 , 2013 .
the new notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness .

on september 9 , 2011 , we issued $ 2.0 billion of long-term notes in a registered public offering consisting of $ 500 million maturing in 2016 with a fixed interest rate of 2.13% ( 2.13 % ) , $ 900 million maturing in 2021 with a fixed interest rate of 3.35% ( 3.35 % ) , and $ 600 million maturing in 2041 with a fixed interest rate of 4.85% ( 4.85 % ) .

we may , at our option , redeem some or all of the notes at any time by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest .
interest on the notes is payable on march 15 and september 15 of each year , beginning on march 15 , 2012 .
in october 2011 , we used a portion of the proceeds to redeem all of our $ 500 million long-term notes maturing in 2013 .
in 2011 , we repurchased $ 84 million of our long-term notes through open-market purchases .

we paid premiums of $ 48 million in connection with the early extinguishments of debt , which were recognized in other non-operating income ( expense ) , net .
in august 2011 , we entered into a $ 1.5 billion revolving credit facility with a group of banks and terminated our existing $ 1.5 billion revolving credit facility that was to expire in june 2012 .

the credit facility expires august 2016 , and we may request and the banks may grant , at their discretion , an increase to the credit facility by an additional amount up to $ 500 million .
there were no borrowings outstanding under either facility through december 31 , 2012 .
borrowings under the credit facility would be unsecured and bear interest at rates based , at our option , on a eurodollar rate or a base rate , as defined in the credit facility .

each bank 2019s obligation to make loans under the credit facility is subject to , among other things , our compliance with various representations , warranties and covenants , including covenants limiting our ability and certain of our subsidiaries 2019 ability to encumber assets and a covenant not to exceed a maximum leverage ratio , as defined in the credit facility .
the leverage ratio covenant excludes the adjustments recognized in stockholders 2019 equity related to postretirement benefit plans .

as of december 31 , 2012 , we were in compliance with all covenants contained in the credit facility , as well as in our debt agreements .
we have agreements in place with banking institutions to provide for the issuance of commercial paper .
there were no commercial paper borrowings outstanding during 2012 or 2011 .
if we were to issue commercial paper , the borrowings would be supported by the credit facility .

during the next five years , we have scheduled long-term debt maturities of $ 150 million due in 2013 and $ 952 million due in 2016 .
interest payments were $ 378 million in 2012 , $ 326 million in 2011 , and $ 337 million in 2010.

 |
| table | | 2012         | 2011
--------------------------------------------------------------------------- | ------------ | ------------
notes with rates from 2.13% ( 2.13 % ) to 6.15% ( 6.15 % ) due 2016 to 2042 | $ 5642       | $ 5308
notes with rates from 7.00% ( 7.00 % ) to 7.75% ( 7.75 % ) due 2013 to 2036 | 1080         | 1239
other debt                                                                  | 478          | 19
total long-term debt                                                        | 7200         | 6966
less : unamortized discounts                                                | -892 ( 892 ) | -506 ( 506 )
total long-term debt net of unamortized discounts                           | 6308         | 6460
less : current maturities of long-term debt                                 | -150 ( 150 ) | 2014
total long-term debt net                                                    | $ 6158       | $ 6460 |