| _id | dd4b9a36e |
| title |  |
| text | put options we currently have outstanding put option agreements with other shareholders of our air products san fu company , ltd .
and indura s.a .
subsidiaries .
the put options give the shareholders the right to sell stock in the subsidiaries based on pricing terms in the agreements .
refer to note 17 , commitments and contingencies , to the consolidated financial statements for additional information .

due to the uncertainty of whether these options would be exercised and the related timing , we excluded the potential payments from the contractual obligations table .
pension benefits we sponsor defined benefit pension plans that cover a substantial portion of our worldwide employees .
the principal defined benefit pension plans 2014the u.s .
salaried pension plan and the u.k .
pension plan 2014were closed to new participants in 2005 and were replaced with defined contribution plans .

over the long run , the shift to defined contribution plans is expected to reduce volatility of both plan expense and contributions .
for 2013 , the fair market value of pension plan assets for our defined benefit plans as of the measurement date increased to $ 3800.8 from $ 3239.1 in 2012 .
the projected benefit obligation for these plans as of the measurement date was $ 4394.0 and $ 4486.5 in 2013 and 2012 , respectively .

refer to note 16 , retirement benefits , to the consolidated financial statements for comprehensive and detailed disclosures on our postretirement benefits .
pension expense .

2013 vs .
2012 the increase in pension expense , excluding special items , was primarily attributable to the 100 bp decrease in weighted average discount rate , resulting in higher amortization of actuarial losses .
the increase was partially offset by a higher expected return on plan assets and contributions in 2013 .

special items of $ 19.8 primarily included $ 12.4 for pension settlement losses and $ 6.9 for special termination benefits relating to the 2013 business restructuring and cost reduction plan .
2012 vs .
2011 pension expense in 2012 , excluding special items , was comparable to 2011 expense as a result of no change in the weighted average discount rate from year to year .

2014 outlook pension expense is estimated to be approximately $ 140 to $ 145 , excluding special items , in 2014 , a decrease of $ 5 to $ 10 from 2013 , resulting primarily from an increase in discount rates , partially offset by unfavorable impacts associated with changes in mortality and inflation assumptions .
pension settlement losses of $ 10 to $ 25 are expected , dependent on the timing of retirements .

in 2014 , pension expense will include approximately $ 118 for amortization of actuarial losses compared to $ 143 in 2013 .
net actuarial gains of $ 370.4 were recognized in 2013 , resulting primarily from an approximately 65 bp increase in the weighted average discount rate as well as actual asset returns above expected returns .
actuarial gains/losses are amortized into pension expense over prospective periods to the extent they are not offset by future gains or losses .

future changes in the discount rate and actual returns on plan assets , different from expected returns , would impact the actuarial gains/losses and resulting amortization in years beyond 2014 .
pension funding pension funding includes both contributions to funded plans and benefit payments for unfunded plans , which are primarily non-qualified plans .

with respect to funded plans , our funding policy is that contributions , combined with appreciation and earnings , will be sufficient to pay benefits without creating unnecessary surpluses .
in addition , we make contributions to satisfy all legal funding requirements while managing our capacity to benefit from tax deductions attributable to plan contributions .

with the assistance of third party actuaries , we analyze the liabilities and demographics of each plan , which help guide the level of contributions .
during 2013 and 2012 , our cash contributions to funded plans and benefit payments for unfunded plans were $ 300.8 and $ 76.4 , respectively .
contributions for 2013 include voluntary contributions for u.s .
plans of $ 220.0.

 |
| table | | 2013           | 2012           | 2011
-------------------------------------------------------------------- | -------------- | -------------- | --------------
pension expense                                                      | $ 169.7        | $ 120.4        | $ 114.1
special terminations settlements and curtailments ( included above ) | 19.8           | 8.2            | 1.3
weighted average discount rate                                       | 4.0% ( 4.0 % ) | 5.0% ( 5.0 % ) | 5.0% ( 5.0 % )
weighted average expected rate of return on plan assets              | 7.7% ( 7.7 % ) | 8.0% ( 8.0 % ) | 8.0% ( 8.0 % )
weighted average expected rate of compensation increase              | 3.8% ( 3.8 % ) | 3.9% ( 3.9 % ) | 4.0% ( 4.0 % ) |


| _id | dd4be2c5e |
| title |  |
| text | although many clients use both active and passive strategies , the application of these strategies differs greatly .
for example , clients may use index products to gain exposure to a market or asset class pending reallocation to an active manager .
this has the effect of increasing turnover of index aum .
in addition , institutional non-etp index assignments tend to be very large ( multi- billion dollars ) and typically reflect low fee rates .

this has the potential to exaggerate the significance of net flows in institutional index products on blackrock 2019s revenues and earnings .
equity year-end 2012 equity aum of $ 1.845 trillion increased by $ 285.4 billion , or 18% ( 18 % ) , from the end of 2011 , largely due to flows into regional , country-specific and global mandates and the effect of higher market valuations .

equity aum growth included $ 54.0 billion in net new business and $ 3.6 billion in new assets related to the acquisition of claymore .
net new business of $ 54.0 billion was driven by net inflows of $ 53.0 billion and $ 19.1 billion into ishares and non-etp index accounts , respectively .
passive inflows were offset by active net outflows of $ 18.1 billion , with net outflows of $ 10.0 billion and $ 8.1 billion from fundamental and scientific active equity products , respectively .

passive strategies represented 84% ( 84 % ) of equity aum with the remaining 16% ( 16 % ) in active mandates .
institutional investors represented 62% ( 62 % ) of equity aum , while ishares , and retail and hnw represented 29% ( 29 % ) and 9% ( 9 % ) , respectively .

at year-end 2012 , 63% ( 63 % ) of equity aum was managed for clients in the americas ( defined as the united states , caribbean , canada , latin america and iberia ) compared with 28% ( 28 % ) and 9% ( 9 % ) managed for clients in emea and asia-pacific , respectively .
blackrock 2019s effective fee rates fluctuate due to changes in aum mix .

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

fixed income fixed income aum ended 2012 at $ 1.259 trillion , rising $ 11.6 billion , or 1% ( 1 % ) , relative to december 31 , 2011 .
growth in aum reflected $ 43.3 billion in net new business , excluding the two large previously mentioned low-fee outflows , $ 75.4 billion in market and foreign exchange gains and $ 3.0 billion in new assets related to claymore .

net new business was led by flows into domestic specialty and global bond mandates , with net inflows of $ 28.8 billion , $ 13.6 billion and $ 3.1 billion into ishares , non-etp index and model-based products , respectively , partially offset by net outflows of $ 2.2 billion from fundamental strategies .
fixed income aum was split between passive and active strategies with 48% ( 48 % ) and 52% ( 52 % ) , respectively .

institutional investors represented 74% ( 74 % ) of fixed income aum while ishares and retail and hnw represented 15% ( 15 % ) and 11% ( 11 % ) , respectively .
at year-end 2012 , 59% ( 59 % ) of fixed income aum was managed for clients in the americas compared with 33% ( 33 % ) and 8% ( 8 % ) managed for clients in emea and asia- pacific , respectively .

multi-asset class component changes in multi-asset class aum ( dollar amounts in millions ) 12/31/2011 net new business acquired market /fx app ( dep ) 12/31/2012 .

multi-asset class aum totaled $ 267.7 billion at year-end 2012 , up 19% ( 19 % ) , or $ 42.6 billion , reflecting $ 15.8 billion in net new business and $ 26.7 billion in portfolio valuation gains .
blackrock 2019s multi-asset class team manages a variety of bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities , currencies , bonds and commodities , and our extensive risk management capabilities .

investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays .
at december 31 , 2012 , institutional investors represented 66% ( 66 % ) of multi-asset class aum , while retail and hnw accounted for the remaining aum .
additionally , 58% ( 58 % ) of multi-asset class aum is managed for clients based in the americas with 37% ( 37 % ) and 5% ( 5 % ) managed for clients in emea and asia-pacific , respectively .

flows reflected ongoing institutional demand for our advice in an increasingly

 |
| table | ( dollar amounts in millions ) | 12/31/2011 | net new business | net acquired | market /fx app ( dep ) | 12/31/2012
------------------------------ | ---------- | ---------------- | ------------ | ---------------------- | ----------
asset allocation               | $ 126067   | $ 1575           | $ 78         | $ 12440                | $ 140160
target date/risk               | 49063      | 14526            | 2014         | 6295                   | 69884
fiduciary                      | 50040      | -284 ( 284 )     | 2014         | 7948                   | 57704
multi-asset                    | $ 225170   | $ 15817          | $ 78         | $ 26683                | $ 267748 |


| _id | dd4bf241a |
| title |  |
| text | management 2019s discussion and analysis of financial condition and results of operations ( continued ) liquidity and capital resources snap-on 2019s growth has historically been funded by a combination of cash provided by operating activities and debt financing .

snap-on believes that its cash from operations and collections of finance receivables , coupled with its sources of borrowings and available cash on hand , are sufficient to fund its currently anticipated requirements for payments of interest and dividends , new loans originated by our financial services businesses , capital expenditures , working capital , restructuring activities , the funding of pension plans , and funding for additional share repurchases and acquisitions , if any .

due to snap-on 2019s credit rating over the years , external funds have been available at an acceptable cost .
as of the close of business on february 8 , 2013 , snap-on 2019s long-term debt and commercial paper were rated , respectively , baa1 and p-2 by moody 2019s investors service ; a- and a-2 by standard & poor 2019s ; and a- and f2 by fitch ratings .

snap-on believes that its current credit arrangements are sound and that the strength of its balance sheet affords the company the financial flexibility to respond to both internal growth opportunities and those available through acquisitions .
however , snap-on cannot provide any assurances of the availability of future financing or the terms on which it might be available , or that its debt ratings may not decrease .

the following discussion focuses on information included in the accompanying consolidated balance sheets .
as of 2012 year end , working capital ( current assets less current liabilities ) of $ 1079.8 million increased $ 132.9 million from $ 946.9 million at 2011 year end .
the following represents the company 2019s working capital position as of 2012 and 2011 year end : ( amounts in millions ) 2012 2011 .

cash and cash equivalents of $ 214.5 million as of 2012 year end compared to cash and cash equivalents of $ 185.6 million at 2011 year end .

the $ 28.9 million increase in cash and cash equivalents includes the impacts of ( i ) $ 329.3 million of cash generated from operations , net of $ 73.0 million of cash contributions ( including $ 54.7 million of discretionary contributions ) to the company 2019s domestic pension plans ; ( ii ) $ 445.5 million of cash from collections of finance receivables ; ( iii ) $ 46.8 million of proceeds from stock purchase and option plan exercises ; and ( iv ) $ 27.0 million of cash proceeds from the sale of a

27.0 million of cash proceeds from the sale of a non-strategic equity investment at book value .

these increases in cash and cash equivalents were partially offset by ( i ) the funding of $ 569.6 million of new finance originations ; ( ii ) dividend payments of $ 81.5 million ; ( iii ) the funding of $ 79.4 million of capital expenditures ; and ( iv ) the repurchase of 1180000 shares of the company 2019s common stock for $ 78.1 million .
of the $ 214.5 million of cash and cash equivalents as of 2012 year end , $ 81.4 million was held outside of the united states .
snap-on considers these non-u.s .

snap-on considers these non-u.s .
funds as permanently invested in its foreign operations to ( i ) provide adequate working capital ; ( ii ) satisfy various regulatory requirements ; and/or ( iii ) take advantage of business expansion opportunities as they arise ; as such , the company does not presently expect to repatriate these funds to fund its u.s .
operations or obligations .

operations or obligations .
the repatriation of cash from certain foreign subsidiaries could have adverse net tax consequences on the company should snap-on be required to pay and record u.s .
income taxes and foreign withholding taxes on funds that were previously considered permanently invested .
alternatively , the repatriation of such cash from certain other foreign subsidiaries could result in favorable net tax consequences for the company .

snap-on periodically evaluates opportunities to repatriate certain foreign cash amounts to the extent that it does not incur additional unfavorable net tax consequences .
44 snap-on incorporated

 |
| table | ( amounts in millions )                      | 2012             | 2011
-------------------------------------------- | ---------------- | ----------------
cash and cash equivalents                    | $ 214.5          | $ 185.6
trade and other accounts receivable 2013 net | 497.9            | 463.5
finance receivables 2013 net                 | 323.1            | 277.2
contract receivables 2013 net                | 62.7             | 49.7
inventories 2013 net                         | 404.2            | 386.4
other current assets                         | 166.6            | 168.3
total current assets                         | 1669.0           | 1530.7
notes payable                                | -5.2 ( 5.2 )     | -16.2 ( 16.2 )
accounts payable                             | -142.5 ( 142.5 ) | -124.6 ( 124.6 )
other current liabilities                    | -441.5 ( 441.5 ) | -443.0 ( 443.0 )
total current liabilities                    | -589.2 ( 589.2 ) | -583.8 ( 583.8 )
working capital                              | $ 1079.8         | $ 946.9 |


| _id | dd4c0c220 |
| title |  |
| text | illumina , inc .
notes to consolidated financial statements 2014 ( continued ) advertising costs the company expenses advertising costs as incurred .
advertising costs were approximately $ 440000 for 2003 , $ 267000 for 2002 and $ 57000 for 2001 .

income taxes a deferred income tax asset or liability is computed for the expected future impact of differences between the financial reporting and tax bases of assets and liabilities , as well as the expected future tax benefit to be derived from tax loss and credit carryforwards .
deferred income tax expense is generally the net change during the year in the deferred income tax asset or liability .
valuation allowances are established when realizability of deferred tax assets is uncertain .

the effect of tax rate changes is reflected in tax expense during the period in which such changes are enacted .
foreign currency translation the functional currencies of the company 2019s wholly owned subsidiaries are their respective local currencies .
accordingly , all balance sheet accounts of these operations are translated to u.s .

dollars using the exchange rates in effect at the balance sheet date , and revenues and expenses are translated using the average exchange rates in effect during the period .

the gains and losses from foreign currency translation of these subsidiaries 2019 financial statements are recorded directly as a separate component of stockholders 2019 equity under the caption 2018 2018accumulated other comprehensive income . 2019 2019 stock-based compensation at december 28 , 2003 , the company has three stock-based employee and non-employee director compensation plans , which are described more fully in note 5 .
as permitted by sfas no .

as permitted by sfas no .
123 , accounting for stock-based compensation , the company accounts for common stock options granted , and restricted stock sold , to employees , founders and directors using the intrinsic value method and , thus , recognizes no compensation expense for options granted , or restricted stock sold , with exercise prices equal to or greater than the fair value of the company 2019s common stock on the date of the grant .

the company has recorded deferred stock compensation related to certain stock options , and restricted stock , which were granted prior to the company 2019s initial public offering with exercise prices below estimated fair value ( see note 5 ) , which is being amortized on an accelerated amortiza- tion methodology in accordance with financial accounting standards board interpretation number ( 2018 2018fin 2019 2019 ) 28 .
pro forma information regarding net loss is required by sfas no .

123 and has been determined as if the company had accounted for its employee stock options and employee stock purchases under the fair value method of that statement .

the fair value for these options was estimated at the dates of grant using the fair value option pricing model ( black scholes ) with the following weighted-average assumptions for 2003 , 2002 and 2001 : year ended year ended year ended december 28 , december 29 , december 30 , 2003 2002 2001 weighted average risk-free interest rate******* 3.03% ( 3.03 % ) 3.73% ( 3.73 % ) 4.65% ( 4.65 % ) expected dividend yield********************* 0% ( 0 % ) 0% ( 0 % ) 0% ( 0 % ) weighted average volatility

0% ( 0 % ) 0% ( 0 % ) weighted average volatility ****************** 103% ( 103 % ) 104% ( 104 % ) 119% ( 119 % ) estimated life ( in years ) ********************** 5 5 5 .

 |
| table | | year ended december 28 2003 | year ended december 29 2002 | year ended december 30 2001
---------------------------------------------- | --------------------------- | --------------------------- | ---------------------------
weighted average risk-free interest rate       | 3.03% ( 3.03 % )            | 3.73% ( 3.73 % )            | 4.65% ( 4.65 % )
expected dividend yield                        | 0% ( 0 % )                  | 0% ( 0 % )                  | 0% ( 0 % )
weighted average volatility                    | 103% ( 103 % )              | 104% ( 104 % )              | 119% ( 119 % )
estimated life ( in years )                    | 5                           | 5                           | 5
weighted average fair value of options granted | $ 3.31                      | $ 4.39                      | $ 7.51 |


| _id | dd4bcf42e |
| title |  |
| text | average age ( yrs. ) highway revenue equipment owned leased total .

capital expenditures our rail network requires significant annual capital investments for replacement , improvement , and expansion .
these investments enhance safety , support the transportation needs of our customers , and improve our operational efficiency .

additionally , we add new locomotives and freight cars to our fleet to replace older , less efficient equipment , to support growth and customer demand , and to reduce our impact on the environment through the acquisition of more fuel-efficient and low-emission locomotives .
2014 capital program 2013 during 2014 , our capital program totaled $ 4.1 billion .

( see the cash capital expenditures table in management 2019s discussion and analysis of financial condition and results of operations 2013 liquidity and capital resources 2013 financial condition , item 7. ) 2015 capital plan 2013 in 2015 , we expect our capital plan to be approximately $ 4.3 billion , which will include expenditures for ptc of approximately $ 450 million and may include non-cash investments .

we may revise our 2015 capital plan if business conditions warrant or if new laws or regulations affect our ability to generate sufficient returns on these investments .

( see discussion of our 2015 capital plan in management 2019s discussion and analysis of financial condition and results of operations 2013 2015 outlook , item 7. ) equipment encumbrances 2013 equipment with a carrying value of approximately $ 2.8 billion and $ 2.9 billion at december 31 , 2014 , and 2013 , respectively served as collateral for capital leases and other types of equipment obligations in accordance with the secured financing arrangements utilized to acquire or refinance such railroad

utilized to acquire or refinance such railroad equipment .

as a result of the merger of missouri pacific railroad company ( mprr ) with and into uprr on january 1 , 1997 , and pursuant to the underlying indentures for the mprr mortgage bonds , uprr must maintain the same value of assets after the merger in order to comply with the security requirements of the mortgage bonds .
as of the merger date , the value of the mprr assets that secured the mortgage bonds was approximately $ 6.0 billion .

in accordance with the terms of the indentures , this collateral value must be maintained during the entire term of the mortgage bonds irrespective of the outstanding balance of such bonds .
environmental matters 2013 certain of our properties are subject to federal , state , and local laws and regulations governing the protection of the environment .

( see discussion of environmental issues in business 2013 governmental and environmental regulation , item 1 , and management 2019s discussion and analysis of financial condition and results of operations 2013 critical accounting policies 2013 environmental , item 7. ) item 3 .
legal proceedings from time to time , we are involved in legal proceedings , claims , and litigation that occur in connection with our business .

we routinely assess our liabilities and contingencies in connection with these matters based upon the latest available information and , when necessary , we seek input from our third-party advisors when making these assessments .

consistent with sec rules and requirements , we describe below material pending legal proceedings ( other than ordinary routine litigation incidental to our business ) , material proceedings known to be contemplated by governmental authorities , other proceedings arising under federal , state , or local environmental laws and regulations ( including governmental proceedings involving potential fines , penalties , or other monetary sanctions in excess of $ 100000 ) , and such other pending matters that we

100000 ) , and such other pending matters that we may determine to be appropriate.

 |
| table | highway revenue equipment       | owned | leased | total | averageage ( yrs. )
------------------------------- | ----- | ------ | ----- | -------------------
containers                      | 26629 | 28306  | 54935 | 7.1
chassis                         | 15182 | 25951  | 41133 | 8.9
total highway revenue equipment | 41811 | 54257  | 96068 | n/a |


| _id | dd4980772 |
| title |  |
| text | the notional amount of these unfunded letters of credit was $ 1.4 billion as of december 31 , 2008 and december 31 , 2007 .
the amount funded was insignificant with no amounts 90 days or more past due or on a non-accrual status at december 31 , 2008 and december 31 , 2007 .
these items have been classified appropriately in trading account assets or trading account liabilities on the consolidated balance sheet .

changes in fair value of these items are classified in principal transactions in the company 2019s consolidated statement of income .

other items for which the fair-value option was selected in accordance with sfas 159 the company has elected the fair-value option for the following eligible items , which did not affect opening retained earnings : 2022 certain credit products ; 2022 certain investments in private equity and real estate ventures and certain equity-method investments ; 2022 certain structured liabilities ; 2022 certain non-structured liabilities ; and 2022 certain mortgage loans certain credit products citigroup has elected

certain credit products citigroup has elected the fair-value option for certain originated and purchased loans , including certain unfunded loan products , such as guarantees and letters of credit , executed by citigroup 2019s trading businesses .

none of these credit products is a highly leveraged financing commitment .
significant groups of transactions include loans and unfunded loan products that are expected to be either sold or securitized in the near term , or transactions where the economic risks are hedged with derivative instruments such as purchased credit default swaps or total return swaps where the company pays the total return on the underlying loans to a third party .

citigroup has elected the fair-value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications .
fair value was not elected for most lending transactions across the company , including where those management objectives would not be met .
the following table provides information about certain credit products carried at fair value: .

in millions of dollars trading assets loans trading assets loans carrying amount reported on the consolidated balance sheet $ 16254 $ 2315 $ 26020 $ 3038 aggregate unpaid principal balance in excess of fair value $ 6501 $ 3 $ 899 $ ( 5 ) balance on non-accrual loans or loans more than 90 days past due $ 77 $ 1113 $ 186 $ 1292 aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due $ 190 $ ( 4 ) $ 68 $ 2014 in addition to the amounts reported

) $ 68 $ 2014 in addition to the amounts reported above , $ 72 million and $ 141 million of unfunded loan commitments related to certain credit products selected for fair-value accounting were outstanding as of december 31 , 2008 and december 31 , 2007 , respectively .

changes in fair value of funded and unfunded credit products are classified in principal transactions in the company 2019s consolidated statement of income .
related interest revenue is measured based on the contractual interest rates and reported as interest revenue on trading account assets or loans depending on their balance sheet classifications .

the changes in fair value for the years ended december 31 , 2008 and 2007 due to instrument-specific credit risk totaled to a loss of $ 38 million and $ 188 million , respectively .
certain investments in private equity and real estate ventures and certain equity method investments citigroup invests in private equity and real estate ventures for the purpose of earning investment returns and for capital appreciation .

the company has elected the fair-value option for certain of these ventures , because such investments are considered similar to many private equity or hedge fund activities in our investment companies , which are reported at fair value .
the fair-value option brings consistency in the accounting and evaluation of certain of these investments .
as required by sfas 159 , all investments ( debt and equity ) in such private equity and real estate entities are accounted for at fair value .

these investments are classified as investments on citigroup 2019s consolidated balance sheet .
citigroup also holds various non-strategic investments in leveraged buyout funds and other hedge funds that previously were required to be accounted for under the equity method .
the company elected fair-value accounting to reduce operational and accounting complexity .

since the funds account for all of their underlying assets at fair value , the impact of applying the equity method to citigroup 2019s investment in these funds was equivalent to fair-value accounting .
thus , this fair-value election had no impact on opening retained earnings .
these investments are classified as other assets on citigroup 2019s consolidated balance sheet .

changes in the fair values of these investments are classified in other revenue in the company 2019s consolidated statement of income .
certain structured liabilities the company has elected the fair-value option for certain structured liabilities whose performance is linked to structured interest rates , inflation or currency risks ( 201cstructured liabilities 201d ) .

the company elected the fair- value option , because these exposures are considered to be trading-related positions and , therefore , are managed on a fair-value basis .
these positions will continue to be classified as debt , deposits or derivatives ( trading account liabilities ) on the company 2019s consolidated balance sheet according to their legal form .

for those structured liabilities classified as long-term debt for which the fair-value option has been elected , the aggregate unpaid principal balance exceeds the aggregate fair value of such instruments by $ 277 million as of december 31 , 2008 and $ 7 million as of december 31 , 2007 .
the change in fair value for these structured liabilities is reported in principal transactions in the company 2019s consolidated statement of income .

related interest expense is measured based on the contractual interest rates and reported as such in the consolidated income statement .
certain non-structured liabilities the company has elected the fair-value option for certain non-structured liabilities with fixed and floating interest rates ( 201cnon-structured liabilities 201d ) .

 |
| table | in millions of dollars                                                                                | 2008 trading assets | 2008 loans | 2008 trading assets | loans
------------------------------------------------------------------------------------------------------------------- | ------------------- | ---------- | ------------------- | ----------
carrying amount reported on the consolidated balance sheet                                                          | $ 16254             | $ 2315     | $ 26020             | $ 3038
aggregate unpaid principal balance in excess of fair value                                                          | $ 6501              | $ 3        | $ 899               | $ -5 ( 5 )
balance on non-accrual loans or loans more than 90 days past due                                                    | $ 77                | $ 1113     | $ 186               | $ 1292
aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days pastdue | $ 190               | $ -4 ( 4 ) | $ 68                | $ 2014 |


| _id | dd4b92402 |
| title |  |
| text | 2017 form 10-k | 115 and $ 1088 million , respectively , were primarily comprised of loans to dealers , and the spc 2019s liabilities of $ 1106 million and $ 1087 million , respectively , were primarily comprised of commercial paper .
the assets of the spc are not available to pay cat financial 2019s creditors .
cat financial may be obligated to perform under the guarantee if the spc experiences losses .
no loss has been experienced or is anticipated under this loan purchase agreement .

cat financial is party to agreements in the normal course of business with selected customers and caterpillar dealers in which they commit to provide a set dollar amount of financing on a pre- approved basis .
they also provide lines of credit to certain customers and caterpillar dealers , of which a portion remains unused as of the end of the period .
commitments and lines of credit generally have fixed expiration dates or other termination clauses .

it has been cat financial 2019s experience that not all commitments and lines of credit will be used .
management applies the same credit policies when making commitments and granting lines of credit as it does for any other financing .
cat financial does not require collateral for these commitments/ lines , but if credit is extended , collateral may be required upon funding .

the amount of the unused commitments and lines of credit for dealers as of december 31 , 2017 and 2016 was $ 10993 million and $ 12775 million , respectively .
the amount of the unused commitments and lines of credit for customers as of december 31 , 2017 and 2016 was $ 3092 million and $ 3340 million , respectively .
our product warranty liability is determined by applying historical claim rate experience to the current field population and dealer inventory .

generally , historical claim rates are based on actual warranty experience for each product by machine model/engine size by customer or dealer location ( inside or outside north america ) .
specific rates are developed for each product shipment month and are updated monthly based on actual warranty claim experience. .

22 .
environmental and legal matters the company is regulated by federal , state and international environmental laws governing our use , transport and disposal of substances and control of emissions .
in addition to governing our manufacturing and other operations , these laws often impact the development of our products , including , but not limited to , required compliance with air emissions standards applicable to internal combustion engines .

we have made , and will continue to make , significant research and development and capital expenditures to comply with these emissions standards .
we are engaged in remedial activities at a number of locations , often with other companies , pursuant to federal and state laws .
when it is probable we will pay remedial costs at a site , and those costs can be reasonably estimated , the investigation , remediation , and operating and maintenance costs are accrued against our earnings .

costs are accrued based on consideration of currently available data and information with respect to each individual site , including available technologies , current applicable laws and regulations , and prior remediation experience .
where no amount within a range of estimates is more likely , we accrue the minimum .
where multiple potentially responsible parties are involved , we consider our proportionate share of the probable costs .

in formulating the estimate of probable costs , we do not consider amounts expected to be recovered from insurance companies or others .
we reassess these accrued amounts on a quarterly basis .
the amount recorded for environmental remediation is not material and is included in accrued expenses .
we believe there is no more than a remote chance that a material amount for remedial activities at any individual site , or at all the sites in the aggregate , will be required .

on january 7 , 2015 , the company received a grand jury subpoena from the u.s .
district court for the central district of illinois .
the subpoena requests documents and information from the company relating to , among other things , financial information concerning u.s .
and non-u.s .
caterpillar subsidiaries ( including undistributed profits of non-u.s .
subsidiaries and the movement of cash among u.s .
and non-u.s .
subsidiaries ) .

and non-u.s .
subsidiaries ) .
the company has received additional subpoenas relating to this investigation requesting additional documents and information relating to , among other things , the purchase and resale of replacement parts by caterpillar inc .
and non-u.s .
caterpillar subsidiaries , dividend distributions of certain non-u.s .
caterpillar subsidiaries , and caterpillar sarl and related structures .

on march 2-3 , 2017 , agents with the department of commerce , the federal deposit insurance corporation and the internal revenue service executed search and seizure warrants at three facilities of the company in the peoria , illinois area , including its former corporate headquarters .

the warrants identify , and agents seized , documents and information related to , among other things , the export of products from the united states , the movement of products between the united states and switzerland , the relationship between caterpillar inc .
and caterpillar sarl , and sales outside the united states .
it is the company 2019s understanding that the warrants , which concern both tax and export activities , are related to the ongoing grand jury investigation .

the company is continuing to cooperate with this investigation .
the company is unable to predict the outcome or reasonably estimate any potential loss ; however , we currently believe that this matter will not have a material adverse effect on the company 2019s consolidated results of operations , financial position or liquidity .

on march 20 , 2014 , brazil 2019s administrative council for economic defense ( cade ) published a technical opinion which named 18 companies and over 100 individuals as defendants , including two subsidiaries of caterpillar inc. , mge - equipamentos e servi e7os ferrovi e1rios ltda .
( mge ) and caterpillar brasil ltda .

( mge ) and caterpillar brasil ltda .
the publication of the technical opinion opened cade 2019s official administrative investigation into allegations that the defendants participated in anticompetitive bid activity for the construction and maintenance of metro and train networks in brazil .
while companies cannot be

 |
| table | ( millions of dollars )                  | 2017         | 2016
---------------------------------------- | ------------ | ------------
warranty liability january 1             | $ 1258       | $ 1354
reduction in liability ( payments )      | -860 ( 860 ) | -909 ( 909 )
increase in liability ( new warranties ) | 1021         | 813
warranty liability december 31           | $ 1419       | $ 1258 |


| _id | dd4bed046 |
| title |  |
| text | entergy corporation and subsidiaries management 2019s financial discussion and analysis imprudence by the utility operating companies in their execution of their obligations under the system agreement .
see note 2 to the financial statements for discussions of this litigation .
in november 2012 the utility operating companies filed amendments to the system agreement with the ferc pursuant to section 205 of the federal power act .

the amendments consist primarily of the technical revisions needed to the system agreement to ( i ) allocate certain charges and credits from the miso settlement statements to the participating utility operating companies ; and ( ii ) address entergy arkansas 2019s withdrawal from the system agreement .

the lpsc , mpsc , puct , and city council filed protests at the ferc regarding the amendments and other aspects of the utility operating companies 2019 future operating arrangements , including requests that the continued viability of the system agreement in miso ( among other issues ) be set for hearing by the ferc .
in december 2013 the ferc issued an order accepting the revisions filed in november 2012 , subject to a further compliance filing and other conditions .

entergy services made the requisite compliance filing in february 2014 and the ferc accepted the compliance filing in november 2015 .

in the november 2015 order , the ferc required entergy services to file a refund report consisting of the results of the intra-system bill rerun from december 19 , 2013 through november 30 , 2015 calculating the use of an energy-based allocator to allocate losses , ancillary services charges and credits , and uplift charges and credits to load of each participating utility operating company .

the filing shows the following payments and receipts among the utility operating companies : payments ( receipts ) ( in millions ) .

in the december 2013 order , the ferc set one issue for hearing involving a settlement with union pacific regarding certain coal delivery issues .
consistent with the decisions described above , entergy arkansas 2019s participation in the system agreement terminated effective december 18 , 2013 .

in december 2014 a ferc alj issued an initial decision finding that entergy arkansas would realize benefits after december 18 , 2013 from the 2008 settlement agreement between entergy services , entergy arkansas , and union pacific , related to certain coal delivery issues .
the alj further found that all of the utility operating companies should share in those benefits pursuant to the methodology proposed by the mpsc .

the utility operating companies and other parties to the proceeding have filed briefs on exceptions and/or briefs opposing exceptions with the ferc challenging various aspects of the december 2014 initial decision and the matter is pending before the ferc .

utility operating company notices of termination of system agreement participation consistent with their written notices of termination delivered in december 2005 and november 2007 , respectively , entergy arkansas and entergy mississippi filed with the ferc in february 2009 their notices of cancellation to terminate their participation in the system agreement , effective december 18 , 2013 and november 7 , 2015 , respectively .

in november 2009 the ferc accepted the notices of cancellation and determined that entergy arkansas and entergy mississippi are permitted to withdraw from the system agreement following the 96-month notice period without payment of a fee or the requirement to otherwise compensate the remaining utility operating companies as a result of withdrawal .
appeals by the lpsc and the city council were denied in 2012 and 2013 .

effective december 18 , 2013 , entergy arkansas ceased participating in the system agreement .
effective november 7 , 2015 , entergy mississippi ceased participating in the system agreement .

in keeping with their prior commitments and after a careful evaluation of the basis for and continued reasonableness of the 96-month system agreement termination notice period , the utility operating companies filed with the ferc in october 2013 to amend the system agreement changing the notice period for an operating company to

 |
| table | | payments ( receipts ) ( in millions )
------------------- | -------------------------------------
entergy louisiana   | ( $ 6.3 )
entergy mississippi | $ 4
entergy new orleans | $ 0.4
entergy texas       | $ 1.9 |


| _id | dd4c4a566 |
| title |  |
| text | a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: .

( 1 ) amounts reflect the settlements with the irs and cra as discussed below .
if the company were to recognize the unrecognized tax benefits of $ 3.5 billion at december 31 , 2013 , the income tax provision would reflect a favorable net impact of $ 3.3 billion .
the company is under examination by numerous tax authorities in various jurisdictions globally .

the company believes that it is reasonably possible that the total amount of unrecognized tax benefits as of december 31 , 2013 could decrease by up to $ 128 million in the next 12 months as a result of various audit closures , settlements or the expiration of the statute of limitations .

the ultimate finalization of the company 2019s examinations with relevant taxing authorities can include formal administrative and legal proceedings , which could have a significant impact on the timing of the reversal of unrecognized tax benefits .
the company believes that its reserves for uncertain tax positions are adequate to cover existing risks or exposures .

interest and penalties associated with uncertain tax positions amounted to a benefit of $ 319 million in 2013 , $ 88 million in 2012 and $ 95 million in 2011 .
these amounts reflect the beneficial impacts of various tax settlements , including those discussed below .
liabilities for accrued interest and penalties were $ 665 million and $ 1.2 billion as of december 31 , 2013 and 2012 , respectively .

in 2013 , the internal revenue service ( 201cirs 201d ) finalized its examination of schering-plough 2019s 2007-2009 tax years .
the company 2019s unrecognized tax benefits for the years under examination exceeded the adjustments related to this examination period and therefore the company recorded a net $ 165 million tax provision benefit in 2013 .
in 2010 , the irs finalized its examination of schering-plough 2019s 2003-2006 tax years .

in this audit cycle , the company reached an agreement with the irs on an adjustment to income related to intercompany pricing matters .
this income adjustment mostly reduced nols and other tax credit carryforwards .
the company 2019s reserves for uncertain tax positions were adequate to cover all adjustments related to this examination period .

additionally , as previously disclosed , the company was seeking resolution of one issue raised during this examination through the irs administrative appeals process .
in 2013 , the company recorded an out-of-period net tax benefit of $ 160 million related to this issue , which was settled in the fourth quarter of 2012 , with final resolution relating to interest owed being reached in the first quarter of 2013 .

the company 2019s unrecognized tax benefits related to this issue exceeded the settlement amount .
management has concluded that the exclusion of this benefit is not material to current or prior year financial statements .
as previously disclosed , the canada revenue agency ( the 201ccra 201d ) had proposed adjustments for 1999 and 2000 relating to intercompany pricing matters and , in july 2011 , the cra issued assessments for other miscellaneous audit issues for tax years 2001-2004 .

in 2012 , merck and the cra reached a settlement for these years that calls for merck to pay additional canadian tax of approximately $ 65 million .
the company 2019s unrecognized tax benefits related to these matters exceeded the settlement amount and therefore the company recorded a net $ 112 million tax provision benefit in 2012 .
a portion of the taxes paid is expected to be creditable for u.s .
tax purposes .
the company had previously established reserves for these matters .

the resolution of these matters did not have a material effect on the company 2019s results of operations , financial position or liquidity .
in 2011 , the irs concluded its examination of merck 2019s 2002-2005 federal income tax returns and as a result the company was required to make net payments of approximately $ 465 million .

the company 2019s unrecognized tax benefits for the years under examination exceeded the adjustments related to this examination period and therefore the company recorded a net $ 700 million tax provision benefit in 2011 .
this net benefit reflects the decrease of unrecognized tax benefits for the years under examination partially offset by increases to unrecognized tax benefits for years subsequent table of contents

 |
| table | | 2013         | 2012         | 2011
------------------------------------------------- | ------------ | ------------ | --------------
balance january 1                                 | $ 4425       | $ 4277       | $ 4919
additions related to current year positions       | 320          | 496          | 695
additions related to prior year positions         | 177          | 58           | 145
reductions for tax positions of prior years ( 1 ) | -747 ( 747 ) | -320 ( 320 ) | -1223 ( 1223 )
settlements                                       | -603 ( 603 ) | -67 ( 67 )   | -259 ( 259 )
lapse of statute of limitations                   | -69 ( 69 )   | -19 ( 19 )   | 2014
balance december 31                               | $ 3503       | $ 4425       | $ 4277 |


| _id | dd4c3312c |
| title |  |
| text | item 1 .
business cna financial corporation 2013 ( continued ) unpredictability in the law , insurance underwriting is expected to continue to be difficult in commercial lines , professional liability and other specialty coverages .
the dodd-frank wall street reform and consumer protection act expands the federal presence in insurance oversight and may increase the regulatory requirements to which cna may be subject .

the act 2019s requirements include streamlining the state-based regulation of reinsurance and nonadmitted insurance ( property or casualty insurance placed from insurers that are eligible to accept insurance , but are not licensed to write insurance in a particular state ) .
the act also establishes a new federal insurance office within the u.s .

department of the treasury with powers over all lines of insurance except health insurance , certain long term care insurance and crop insurance , to , among other things , monitor aspects of the insurance industry , identify issues in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the overall financial system , coordinate federal policy on international insurance matters and preempt state insurance measures under certain circumstances .

the act calls for numerous studies and contemplates further regulation .
the patient protection and affordable care act and the related amendments in the health care and education reconciliation act may increase cna 2019s operating costs and underwriting losses .
this landmark legislation may lead to numerous changes in the health care industry that could create additional operating costs for cna , particularly with respect to workers 2019 compensation and long term care products .

these costs might arise through the increased use of health care services by claimants or the increased complexities in health care bills that could require additional levels of review .

in addition , due to the expected number of new participants in the health care system and the potential for additional malpractice claims , cna may experience increased underwriting risk in the lines of business that provide management and professional liability insurance to individuals and businesses engaged in the health care industry .

the lines of business that provide professional liability insurance to attorneys , accountants and other professionals who advise clients regarding the health care reform legislation may also experience increased underwriting risk due to the complexity of the legislation .
properties : the chicago location owned by ccc , a wholly owned subsidiary of cna , houses cna 2019s principal executive offices .
cna owns or leases office space in various cities throughout the united states and in other countries .

the following table sets forth certain information with respect to cna 2019s principal office locations : location ( square feet ) principal usage 333 s .

wabash avenue 763322 principal executive offices of cna chicago , illinois 401 penn street 190677 property and casualty insurance offices reading , pennsylvania 2405 lucien way 116948 property and casualty insurance offices maitland , florida 40 wall street 114096 property and casualty insurance offices new york , new york 1100 ward avenue 104478 property and casualty insurance offices honolulu , hawaii 101 s .
phillips avenue 83616 property and casualty insurance offices sioux falls , south dakota 600 n .

pearl street 65752 property and casualty insurance offices dallas , texas 1249 s .
river road 50366 property and casualty insurance offices cranbury , new jersey 4267 meridian parkway 46903 data center aurora , illinois 675 placentia avenue 46571 property and casualty insurance offices brea , california cna leases its office space described above except for the chicago , illinois building , the reading , pennsylvania building , and the aurora , illinois building , which are owned. .

item 1 .
business cna financial corporation 2013 ( continued ) unpredictability in the law , insurance underwriting is expected to continue to be difficult in commercial lines , professional liability and other specialty coverages .
the dodd-frank wall street reform and consumer protection act expands the federal presence in insurance oversight and may increase the regulatory requirements to which cna may be subject .

the act 2019s requirements include streamlining the state-based regulation of reinsurance and nonadmitted insurance ( property or casualty insurance placed from insurers that are eligible to accept insurance , but are not licensed to write insurance in a particular state ) .
the act also establishes a new federal insurance office within the u.s .

department of the treasury with powers over all lines of insurance except health insurance , certain long term care insurance and crop insurance , to , among other things , monitor aspects of the insurance industry , identify issues in the regulation of insurers that could contribute to a systemic crisis in the insurance industry or the overall financial system , coordinate federal policy on international insurance matters and preempt state insurance measures under certain circumstances .

the act calls for numerous studies and contemplates further regulation .
the patient protection and affordable care act and the related amendments in the health care and education reconciliation act may increase cna 2019s operating costs and underwriting losses .
this landmark legislation may lead to numerous changes in the health care industry that could create additional operating costs for cna , particularly with respect to workers 2019 compensation and long term care products .

these costs might arise through the increased use of health care services by claimants or the increased complexities in health care bills that could require additional levels of review .

in addition , due to the expected number of new participants in the health care system and the potential for additional malpractice claims , cna may experience increased underwriting risk in the lines of business that provide management and professional liability insurance to individuals and businesses engaged in the health care industry .

the lines of business that provide professional liability insurance to attorneys , accountants and other professionals who advise clients regarding the health care reform legislation may also experience increased underwriting risk due to the complexity of the legislation .
properties : the chicago location owned by ccc , a wholly owned subsidiary of cna , houses cna 2019s principal executive offices .
cna owns or leases office space in various cities throughout the united states and in other countries .

the following table sets forth certain information with respect to cna 2019s principal office locations : location ( square feet ) principal usage 333 s .

wabash avenue 763322 principal executive offices of cna chicago , illinois 401 penn street 190677 property and casualty insurance offices reading , pennsylvania 2405 lucien way 116948 property and casualty insurance offices maitland , florida 40 wall street 114096 property and casualty insurance offices new york , new york 1100 ward avenue 104478 property and casualty insurance offices honolulu , hawaii 101 s .
phillips avenue 83616 property and casualty insurance offices sioux falls , south dakota 600 n .

pearl street 65752 property and casualty insurance offices dallas , texas 1249 s .
river road 50366 property and casualty insurance offices cranbury , new jersey 4267 meridian parkway 46903 data center aurora , illinois 675 placentia avenue 46571 property and casualty insurance offices brea , california cna leases its office space described above except for the chicago , illinois building , the reading , pennsylvania building , and the aurora , illinois building , which are owned.

 |
| table | location                                        | size ( square feet ) | principal usage
----------------------------------------------- | -------------------- | ---------------------------------------
333 s . wabash avenuechicago illinois           | 763322               | principal executive offices of cna
401 penn streetreading pennsylvania             | 190677               | property and casualty insurance offices
2405 lucien waymaitland florida                 | 116948               | property and casualty insurance offices
40 wall streetnew york new york                 | 114096               | property and casualty insurance offices
1100 ward avenuehonolulu hawaii                 | 104478               | property and casualty insurance offices
101 s . phillips avenuesioux falls south dakota | 83616                | property and casualty insurance offices
600 n . pearl streetdallas texas                | 65752                | property and casualty insurance offices
1249 s . river roadcranbury new jersey          | 50366                | property and casualty insurance offices
4267 meridian parkwayaurora illinois            | 46903                | data center
675 placentia avenuebrea california             | 46571                | property and casualty insurance offices |


| _id | dd4ba898c |
| title |  |
| text | future minimum lease commitments for office premises and equipment under non-cancelable leases , along with minimum sublease rental income to be received under non-cancelable subleases , are as follows : period rent obligations sublease rental income net rent .

guarantees we have certain contingent obligations under guarantees of certain of our subsidiaries ( 201cparent company guarantees 201d ) relating principally to credit facilities , guarantees of certain media payables and operating leases .
the amount of such parent company guarantees was $ 327.1 and $ 327.9 as of december 31 , 2007 and 2006 , respectively .

in the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee , we would be obligated to pay the amounts covered by that guarantee .
as of december 31 , 2007 , there are no material assets pledged as security for such parent company guarantees .

contingent acquisition obligations we have structured certain acquisitions with additional contingent purchase price obligations in order to reduce the potential risk associated with negative future performance of the acquired entity .
in addition , we have entered into agreements that may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries .

the amounts relating to these transactions are based on estimates of the future financial performance of the acquired entity , the timing of the exercise of these rights , changes in foreign currency exchange rates and other factors .
we have not recorded a liability for these items since the definitive amounts payable are not determinable or distributable .

when the contingent acquisition obligations have been met and consideration is determinable and distributable , we record the fair value of this consideration as an additional cost of the acquired entity .
however , we recognize deferred payments and purchases of additional interests after the effective date of purchase that are contingent upon the future employment of owners as compensation expense .

compensation expense is determined based on the terms and conditions of the respective acquisition agreements and employment terms of the former owners of the acquired businesses .
this future expense will not be allocated to the assets and liabilities acquired and is amortized over the required employment terms of the former owners .

the following table details the estimated liability with respect to our contingent acquisition obligations and the estimated amount that would be paid under the options , in the event of exercise at the earliest exercise date .
all payments are contingent upon achieving projected operating performance targets and satisfying other notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts )

 |
| table | period              | rent obligations | sublease rental income | net rent
------------------- | ---------------- | ---------------------- | --------
2008                | $ 323.9          | $ -40.9 ( 40.9 )       | $ 283.0
2009                | 300.9            | -37.5 ( 37.5 )         | 263.4
2010                | 267.7            | -31.0 ( 31.0 )         | 236.7
2011                | 233.7            | -25.7 ( 25.7 )         | 208.0
2012                | 197.9            | -20.2 ( 20.2 )         | 177.7
2013 and thereafter | 871.0            | -33.1 ( 33.1 )         | 837.9
total               | $ 2195.1         | $ -188.4 ( 188.4 )     | $ 2006.7 |


| _id | dd4bbab00 |
| title |  |
| text | table of contents hologic , inc .
notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) location during fiscal 2009 .
the company was responsible for a significant portion of the construction costs and therefore was deemed , for accounting purposes , to be the owner of the building during the construction period , in accordance with asc 840 , leases , subsection 40-15-5 .

during the year ended september 27 , 2008 , the company recorded an additional $ 4400 in fair market value of the building , which was completed in fiscal 2008 .
this is in addition to the $ 3000 fair market value of the land and the $ 7700 fair market value related to the building constructed that cytyc had recorded as of october 22 , 2007 .
the company has recorded such fair market value within property and equipment on its consolidated balance sheets .

at september 26 , 2009 , the company has recorded $ 1508 in accrued expenses and $ 16329 in other long-term liabilities related to this obligation in the consolidated balance sheet .
the term of the lease is for a period of approximately ten years with the option to extend for two consecutive five-year terms .
the lease term commenced in may 2008 , at which time the company began transferring the company 2019s costa rican operations to this facility .

it is expected that this process will be complete by february 2009 .
at the completion of the construction period , the company reviewed the lease for potential sale-leaseback treatment in accordance with asc 840 , subsection 40 , sale-leaseback transactions ( formerly sfas no .

98 ( 201csfas 98 201d ) , accounting for leases : sale-leaseback transactions involving real estate , sales-type leases of real estate , definition of the lease term , and initial direct costs of direct financing leases 2014an amendment of financial accounting standards board ( 201cfasb 201d ) statements no .
13 , 66 , and 91 and a rescission of fasb statement no .
26 and technical bulletin no .
79-11 ) .

26 and technical bulletin no .
79-11 ) .
based on its analysis , the company determined that the lease did not qualify for sale-leaseback treatment .
therefore , the building , leasehold improvements and associated liabilities will remain on the company 2019s financial statements throughout the lease term , and the building and leasehold improvements will be depreciated on a straight line basis over their estimated useful lives of 35 years .

future minimum lease payments , including principal and interest , under this lease were as follows at september 26 , 2009: .

in addition , as a result of the merger with cytyc , the company assumed the obligation to a non-cancelable lease agreement for a building with approximately 146000 square feet located in marlborough , massachusetts , to be principally used as an additional manufacturing facility .
in 2011 , the company will have an option to lease an additional 30000 square feet .

as part of the lease agreement , the lessor agreed to allow the company to make significant renovations to the facility to prepare the facility for the company 2019s manufacturing needs .
the company was responsible for a significant amount of the construction costs and therefore was deemed , for accounting purposes , to be the owner of the building during the construction period in accordance with asc 840-40-15-5 .

the $ 13200 fair market value of the facility is included within property and equipment , net on the consolidated balance sheet .
at september 26 , 2009 , the company has recorded $ 982 in accrued expenses and source : hologic inc , 10-k , november 24 , 2009 powered by morningstar ae document research 2120 the information contained herein may not be copied , adapted or distributed and is not warranted to be accurate , complete or timely .

the user assumes all risks for any damages or losses arising from any use of this information , except to the extent such damages or losses cannot be limited or excluded by applicable law .
past financial performance is no guarantee of future results.

 |
| table | | amount
--------------------------------- | --------------
fiscal 2010                       | $ 1508
fiscal 2011                       | 1561
fiscal 2012                       | 1616
fiscal 2013                       | 1672
fiscal 2014                       | 1731
thereafter                        | 7288
total minimum payments            | 15376
less-amount representing interest | -6094 ( 6094 )
total                             | $ 9282 |


| _id | dd4be6cb4 |
| 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 , 2011 in the standard & poor 2019s 500 index , the dow jones transportation average and our class b common stock. .

 |
| table | | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 103.84   | $ 152.16   | $ 165.35   | $ 154.61   | $ 189.72
standard & poor 2019s 500 index  | $ 100.00   | $ 115.99   | $ 153.54   | $ 174.54   | $ 176.94   | $ 198.09
dow jones transportation average | $ 100.00   | $ 107.49   | $ 151.97   | $ 190.07   | $ 158.22   | $ 192.80 |


| _id | dd4c50e34 |
| title |  |
| text | defined by fin 46 ( r ) , as a result of the issuance of subordinated notes by the conduits to third-party investors , and we do not record these conduits in our consolidated financial statements .
at december 31 , 2006 and 2005 , total assets in unconsolidated conduits were $ 25.25 billion and $ 17.90 billion , respectively .
our off-balance sheet commitments to these conduits are disclosed in note 10 .

collateralized debt obligations : we manage a series of collateralized debt obligations , or 201ccdos . 201d a cdo is a managed investment vehicle which purchases a portfolio of diversified highly-rated assets .
a cdo funds purchases through the issuance of several tranches of debt and equity , the repayment and return of which are linked to the performance of the assets in the cdo .
typically , our involvement is as collateral manager .
we may also invest in a small percentage of the debt issued .

these entities typically meet the definition of a variable interest entity as defined by fin 46 ( r ) .
we are not the primary beneficiary of these cdos , as defined by fin 46 ( r ) , and do not record these cdos in our consolidated financial statements .
at december 31 , 2006 and 2005 , total assets in these cdos were $ 3.48 billion and $ 2.73 billion , respectively .
during 2005 , we acquired and transferred $ 60 million of investment securities from our available-for- sale portfolio into a cdo .

this transfer , which was executed at fair market value in exchange for cash , was treated as a sale .
we did not acquire or transfer any investment securities to a cdo during 2006 .
note 12 .
shareholders 2019 equity treasury stock : during the first quarter of 2006 , we purchased 3 million shares of our common stock under a program authorized by our board of directors , or 201cboard , 201d in 2005 .

on march 16 , 2006 , the board authorized a new program for the purchase of up to 15 million shares of our common stock for general corporate purposes , including mitigating the dilutive impact of shares issued under employee benefit programs , and terminated the 2005 program .
under this new program , we purchased 2.8 million shares of our common stock during 2006 , and as of december 31 , 2006 , 12.2 million shares were available for purchase .

we utilize third-party broker-dealers to acquire common shares on the open market in the execution of our stock purchase program .
in addition , shares may be acquired for other deferred compensation plans , held by an external trustee , that are not part of the common stock purchase program .
as of december 31 , 2006 , on a cumulative basis , approximately 395000 shares have been purchased and are held in trust .
these shares are recorded as treasury stock in our consolidated statement of condition .

during 2006 , 2005 and 2004 , we purchased and recorded as treasury stock a total of 5.8 million shares , 13.1 million shares and 4.1 million shares , respectively , at an average historical cost per share of $ 63 , $ 51 and $ 43 , respectively .
accumulated other comprehensive ( loss ) income: .

for the year ended december 31 , 2006 , we realized net gains of $ 15 million on sales of available-for- sale securities .
unrealized losses of $ 7 million were included in other comprehensive income at december 31 , 2005 , net of deferred taxes of $ 4 million , related to these sales .
seq 86 copyarea : 38 .
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seq 86 copyarea : 38 .
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trimsize : 8.25 x 10.75 typeset state street corporation serverprocess c:\\fc\\delivery_1024177\\2771-1-dm_p.pdf chksum : 0 cycle 1merrill corporation 07-2771-1 thu mar 01 17:10:46 2007 ( v 2.247w--stp1pae18 )

 |
| table | ( in millions )                                                                 | 2006           | 2005           | 2004
------------------------------------------------------------------------------- | -------------- | -------------- | ----------
foreign currency translation                                                    | $ 197          | $ 73           | $ 213
unrealized gain ( loss ) on hedges of net investments in non-u.s . subsidiaries | -7 ( 7 )       | 11             | -26 ( 26 )
unrealized loss on available-for-sale securities                                | -227 ( 227 )   | -285 ( 285 )   | -56 ( 56 )
minimum pension liability                                                       | -186 ( 186 )   | -26 ( 26 )     | -26 ( 26 )
unrealized loss on cash flow hedges                                             | -1 ( 1 )       | -4 ( 4 )       | -13 ( 13 )
total                                                                           | $ -224 ( 224 ) | $ -231 ( 231 ) | $ 92 |


| _id | dd4b9d19a |
| title |  |
| text | aggregate notional amounts associated with interest rate caps in place as of december 31 , 2004 and interest rate detail by contractual maturity dates ( in thousands , except percentages ) .

( a ) as of december 31 , 2005 , variable rate debt consists of the new american tower and spectrasite credit facilities ( $ 1493.0 million ) that were refinanced on october 27 , 2005 , which are included above based on their october 27 , 2010 maturity dates .

as of december 31 , 2005 , fixed rate debt consists of : the 2.25% ( 2.25 % ) convertible notes due 2009 ( 2.25% ( 2.25 % ) notes ) ( $ 0.1 million ) ; the 7.125% ( 7.125 % ) notes ( $ 500.0 million principal amount due at maturity ; the balance as of december 31 , 2005 is $ 501.9 million ) ; the 5.0% ( 5.0 % ) notes ( $ 275.7 million ) ; the 3.25% ( 3.25 % ) notes ( $ 152.9 million ) ; the 7.50% ( 7.50 % ) notes ( $ 225.0 million ) ; the ati 7.25% ( 7.25 % ) notes ( $ 400.0 million ) ; the ati 12.25% (

% ) notes ( $ 400.0 million ) ; the ati 12.25% ( 12.25 % ) notes ( $ 227.7 million principal amount due at maturity ; the balance as of december 31 , 2005 is $ 160.3 million accreted value , net of the allocated fair value of the related warrants of $ 7.2 million ) ; the 3.00% ( 3.00 % ) notes ( $ 345.0 million principal amount due at maturity ; the balance as of december 31 , 2005 is $ 344.4 million accreted value ) and other debt of $ 60.4 million .

interest on our credit facilities is payable in accordance with the applicable london interbank offering rate ( libor ) agreement or quarterly and accrues at our option either at libor plus margin ( as defined ) or the base rate plus margin ( as defined ) .
the weighted average interest rate in effect at december 31 , 2005 for our credit facilities was 4.71% ( 4.71 % ) .
for the year ended december 31 , 2005 , the weighted average interest rate under our credit facilities was 5.03% ( 5.03 % ) .

as of december 31 , 2004 , variable rate debt consists of our previous credit facility ( $ 698.0 million ) and fixed rate debt consists of : the 2.25% ( 2.25 % ) notes ( $ 0.1 million ) ; the 7.125% ( 7.125 % ) notes ( $ 500.0 million principal amount due at maturity ; the balance as of december 31 , 2004 is $ 501.9 million ) ; the 5.0% ( 5.0 % ) notes ( $ 275.7 million ) ; the 3.25% ( 3.25 % ) notes ( $ 210.0 million ) ; the 7.50% ( 7.50 % ) notes ( $ 225.0 million ) ; the ati 7.25% ( 7.25 % ) notes ( $

million ) ; the ati 7.25% ( 7.25 % ) notes ( $ 400.0 million ) ; the ati 12.25% ( 12.25 % ) notes ( $ 498.3 million principal amount due at maturity ; the balance as of december 31 , 2004 is $ 303.8 million accreted value , net of the allocated fair value of the related warrants of $ 21.6 million ) ; the 9 3 20448% ( 20448 % ) notes ( $ 274.9 million ) ; the 3.00% ( 3.00 % ) notes ( $ 345.0 million principal amount due at maturity ; the balance as of december 31 , 2004 is $ 344.3 million accreted value )

31 , 2004 is $ 344.3 million accreted value ) and other debt of $ 60.0 million .

interest on the credit facility was payable in accordance with the applicable london interbank offering rate ( libor ) agreement or quarterly and accrues at our option either at libor plus margin ( as defined ) or the base rate plus margin ( as defined ) .
the weighted average interest rate in effect at december 31 , 2004 for the credit facility was 4.35% ( 4.35 % ) .
for the year ended december 31 , 2004 , the weighted average interest rate under the credit facility was 3.81% ( 3.81 % ) .

( b ) includes notional amount of $ 175000 that expires in february 2006 .
( c ) includes notional amount of $ 25000 that expires in september 2007 .
( d ) includes notional amounts of $ 250000 and $ 100000 that expire in june and july 2006 , respectively .
( e ) represents the weighted-average fixed rate or range of interest based on contractual notional amount as a percentage of total notional amounts in a given year .

( f ) includes notional amounts of $ 75000 , $ 75000 and $ 150000 that expire in december 2009 .
( g ) includes notional amounts of $ 100000 , $ 50000 , $ 50000 , $ 50000 and $ 50000 that expire in october 2010 .
( h ) includes notional amounts of $ 50000 and $ 50000 that expire in october 2010 .
( i ) includes notional amount of $ 50000 that expires in october 2010 .
our foreign operations include rental and management segment divisions in mexico and brazil .

the remeasurement gain for the year ended december 31 , 2005 was $ 396000 , and the remeasurement losses for the years ended december 31 , 2004 , and 2003 approximated $ 146000 , and $ 1142000 , respectively .
changes in interest rates can cause interest charges to fluctuate on our variable rate debt , comprised of $ 1493.0 million under our credit facilities as of december 31 , 2005 .

a 10% ( 10 % ) increase , or approximately 47 basis points , in current interest rates would have caused an additional pre-tax charge our net loss and an increase in our cash outflows of $ 7.0 million for the year ended december 31 , 2005 .
item 8 .
financial statements and supplementary data see item 15 ( a ) .
item 9 .
changes in and disagreements with accountants on accounting and financial disclosure

 |
| table | interest rate caps    | 2005             | 2006
--------------------- | ---------------- | ----------------
notional amount ( d ) | $ 350000         | $ 350000
cap rate ( e )        | 6.00% ( 6.00 % ) | 6.00% ( 6.00 % ) |


| _id | dd4c2568a |
| title |  |
| text | ventas , inc .
notes to consolidated financial statements 2014 ( continued ) applicable indenture .
the issuers may also redeem the 2015 senior notes , in whole at any time or in part from time to time , on or after june 1 , 2010 at varying redemption prices set forth in the applicable indenture , plus accrued and unpaid interest thereon to the redemption date .

in addition , at any time prior to june 1 , 2008 , the issuers may redeem up to 35% ( 35 % ) of the aggregate principal amount of either or both of the 2010 senior notes and 2015 senior notes with the net cash proceeds from certain equity offerings at redemption prices equal to 106.750% ( 106.750 % ) and 107.125% ( 107.125 % ) , respectively , of the principal amount thereof , plus , in each case , accrued and unpaid interest thereon to the redemption date .

the issuers may redeem the 2014 senior notes , in whole at any time or in part from time to time , ( i ) prior to october 15 , 2009 at a redemption price equal to 100% ( 100 % ) of the principal amount thereof , plus a make-whole premium as described in the applicable indenture and ( ii ) on or after october 15 , 2009 at varying redemption prices set forth in the applicable indenture , plus , in each case , accrued and unpaid interest thereon to the redemption date .

the issuers may redeem the 2009 senior notes and the 2012 senior notes , in whole at any time or in part from time to time , at a redemption price equal to 100% ( 100 % ) of the principal amount thereof , plus accrued and unpaid interest thereon to the redemption date and a make-whole premium as described in the applicable indenture .

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

conditions are met , this repurchase obligation will not apply .

mortgages at december 31 , 2007 , we had outstanding 121 mortgage loans totaling $ 1.57 billion that are collateralized by the underlying assets of the properties .
outstanding principal balances on these loans ranged from $ 0.4 million to $ 59.4 million as of december 31 , 2007 .

the loans generally bear interest at fixed rates ranging from 5.4% ( 5.4 % ) to 8.5% ( 8.5 % ) per annum , except for 15 loans with outstanding principal balances ranging from $ 0.4 million to $ 32.0 million , which bear interest at the lender 2019s variable rates ranging from 3.4% ( 3.4 % ) to 7.3% ( 7.3 % ) per annum as of december 31 , 2007 .

at december 31 , 2007 , the weighted average annual rate on fixed rate debt was 6.5% ( 6.5 % ) and the weighted average annual rate on the variable rate debt was 6.1% ( 6.1 % ) .
the loans had a weighted average maturity of 7.0 years as of december 31 , 2007 .
sunrise 2019s portion of total debt was $ 157.1 million as of december 31 , scheduled maturities of borrowing arrangements and other provisions as of december 31 , 2007 , our indebtedness had the following maturities ( in thousands ) : .

 |
| table | 2008                                      | $ 193101
----------------------------------------- | --------------
2009                                      | 605762
2010                                      | 282138
2011                                      | 303191
2012                                      | 527221
thereafter                                | 1436263
total maturities                          | 3347676
unamortized fair value adjustment         | 19669
unamortized commission fees and discounts | -6846 ( 6846 )
senior notes payable and other debt       | $ 3360499 |


| _id | dd4be123c |
| title |  |
| text | marathon oil corporation notes to consolidated financial statements equivalent to the exchangeable shares at the acquisition date as discussed below .
additional shares of voting preferred stock will be issued as necessary to adjust the number of votes to account for changes in the exchange ratio .
preferred shares 2013 in connection with the acquisition of western discussed in note 6 , the board of directors authorized a class of voting preferred stock consisting of 6 million shares .

upon completion of the acquisition , we issued 5 million shares of this voting preferred stock to a trustee , who holds the shares for the benefit of the holders of the exchangeable shares discussed above .
each share of voting preferred stock is entitled to one vote on all matters submitted to the holders of marathon common stock .

each holder of exchangeable shares may direct the trustee to vote the number of shares of voting preferred stock equal to the number of shares of marathon common stock issuable upon the exchange of the exchangeable shares held by that holder .
in no event will the aggregate number of votes entitled to be cast by the trustee with respect to the outstanding shares of voting preferred stock exceed the number of votes entitled to be cast with respect to the outstanding exchangeable shares .

except as otherwise provided in our restated certificate of incorporation or by applicable law , the common stock and the voting preferred stock will vote together as a single class in the election of directors of marathon and on all other matters submitted to a vote of stockholders of marathon generally .
the voting preferred stock will have no other voting rights except as required by law .

other than dividends payable solely in shares of voting preferred stock , no dividend or other distribution , will be paid or payable to the holder of the voting preferred stock .
in the event of any liquidation , dissolution or winding up of marathon , the holder of shares of the voting preferred stock will not be entitled to receive any assets of marathon available for distribution to its stockholders .

the voting preferred stock is not convertible into any other class or series of the capital stock of marathon or into cash , property or other rights , and may not be redeemed .
25 .
leases we lease a wide variety of facilities and equipment under operating leases , including land and building space , office equipment , production facilities and transportation equipment .
most long-term leases include renewal options and , in certain leases , purchase options .

future minimum commitments for capital lease obligations ( including sale-leasebacks accounted for as financings ) and for operating lease obligations having initial or remaining noncancelable lease terms in excess of one year are as follows : ( in millions ) capital lease obligations ( a ) operating obligations .

( a ) capital lease obligations include $ 164 million related to assets under construction as of december 31 , 2009 .
these leases are currently reported in long-term debt based on percentage of construction completed at $ 36 million .
in connection with past sales of various plants and operations , we assigned and the purchasers assumed certain leases of major equipment used in the divested plants and operations of united states steel .

in the event of a default by any of the purchasers , united states steel has assumed these obligations ; however , we remain primarily obligated for payments under these leases .
minimum lease payments under these operating lease obligations of $ 16 million have been included above and an equal amount has been reported as sublease rentals.

 |
| table | ( in millions )                             | capital lease obligations ( a ) | operating lease obligations
------------------------------------------- | ------------------------------- | ---------------------------
2010                                        | $ 46                            | $ 165
2011                                        | 45                              | 140
2012                                        | 58                              | 121
2013                                        | 44                              | 102
2014                                        | 44                              | 84
later years                                 | 466                             | 313
sublease rentals                            | -                               | -16 ( 16 )
total minimum lease payments                | $ 703                           | $ 909
less imputed interest costs                 | -257 ( 257 )                    |
present value of net minimum lease payments | $ 446                           | |


| _id | dd4b96390 |
| title |  |
| text | entergy new orleans , inc .
management's financial discussion and analysis entergy new orleans' receivables from the money pool were as follows as of december 31 for each of the following years: .

money pool activity provided $ 0.4 million of entergy new orleans' operating cash flow in 2004 , provided $ 1.7 million in 2003 , and provided $ 5.7 million in 2002 .
see note 4 to the domestic utility companies and system energy financial statements for a description of the money pool .

investing activities net cash used in investing activities decreased $ 15.5 million in 2004 primarily due to capital expenditures related to a turbine inspection project at a fossil plant in 2003 and decreased customer service spending .
net cash used in investing activities increased $ 23.2 million in 2003 compared to 2002 primarily due to the maturity of $ 14.9 million of other temporary investments in 2002 and increased construction expenditures due to increased customer service spending .

financing activities net cash used in financing activities increased $ 7.0 million in 2004 primarily due to the costs and expenses related to refinancing $ 75 million of long-term debt in 2004 and an increase of $ 2.2 million in common stock dividends paid .
net cash used in financing activities increased $ 1.5 million in 2003 primarily due to additional common stock dividends paid of $ 2.2 million .

in july 2003 , entergy new orleans issued $ 30 million of 3.875% ( 3.875 % ) series first mortgage bonds due august 2008 and $ 70 million of 5.25% ( 5.25 % ) series first mortgage bonds due august 2013 .
the proceeds from these issuances were used to redeem , prior to maturity , $ 30 million of 7% ( 7 % ) series first mortgage bonds due july 2008 , $ 40 million of 8% ( 8 % ) series bonds due march 2006 , and $ 30 million of 6.65% ( 6.65 % ) series first mortgage bonds due march 2004 .

the issuances and redemptions are not shown on the cash flow statement because the proceeds from the issuances were placed in a trust for use in the redemptions and never held as cash by entergy new orleans .
see note 5 to the domestic utility companies and system energy financial statements for details on long- term debt .

uses of capital entergy new orleans requires capital resources for : 2022 construction and other capital investments ; 2022 debt and preferred stock maturities ; 2022 working capital purposes , including the financing of fuel and purchased power costs ; and 2022 dividend and interest payments.

 |
| table | 2004             | 2003             | 2002             | 2001
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 1413           | $ 1783           | $ 3500           | $ 9208 |


| _id | dd4b9b12e |
| title |  |
| text | supplemental pro forma financial information ( unaudited ) the following table presents summarized unaudited pro forma financial information as if sikorsky had been included in our financial results for the entire year in 2015 ( in millions ) : .

the unaudited supplemental pro forma financial data above has been calculated after applying our accounting policies and adjusting the historical results of sikorskywith pro forma adjustments , net of tax , that assume the acquisition occurred on january 1 , 2015 .
significant pro forma adjustments include the recognition of additional amortization expense related to acquired intangible assets and additional interest expense related to the short-term debt used to finance the acquisition .

these adjustments assume the application of fair value adjustments to intangibles and the debt issuance occurred on january 1 , 2015 and are approximated as follows : amortization expense of $ 125million and interest expense of $ 40million .

in addition , significant nonrecurring adjustments include the elimination of a $ 72million pension curtailment loss , net of tax , recognized in 2015 and the elimination of a $ 58 million income tax charge related to historic earnings of foreign subsidiaries recognized by sikorsky in 2015 .
the unaudited supplemental pro forma financial information also reflects an increase in interest expense , net of tax , of approximately $ 110 million in 2015 .

the increase in interest expense is the result of assuming the november 2015 notes were issued on january 1 , 2015 .
proceeds of the november 2015 notes were used to repay all outstanding borrowings under the 364- day facility used to finance a portion of the purchase price of sikorsky , as contemplated at the date of acquisition .

the unaudited supplemental pro forma financial information does not reflect the realization of any expected ongoing cost or revenue synergies relating to the integration of the two companies .
further , the pro forma data should not be considered indicative of the results that would have occurred if the acquisition , related financing and associated notes issuance and repayment of the 364-day facility had been consummated on january 1 , 2015 , nor are they indicative of future results .

consolidation of awemanagement limited on august 24 , 2016 , we increased our ownership interest in the awe joint venture , which operates the united kingdom 2019s nuclear deterrent program , from 33% ( 33 % ) to 51% ( 51 % ) .
at which time , we began consolidating awe .
consequently , our operating results include 100% ( 100 % ) of awe 2019s sales and 51% ( 51 % ) of its operating profit .

prior to increasing our ownership interest , we accounted for our investment inawe using the equity method of accounting .
under the equity method , we recognized only 33% ( 33 % ) ofawe 2019s earnings or losses and no sales.accordingly , prior toaugust 24 , 2016 , the date we obtained control , we recorded 33%ofawe 2019s net earnings in our operating results and subsequent to august 24 , 2016 , we recognized 100% ( 100 % ) of awe 2019s sales and 51% ( 51 % ) of its operating profit .

we accounted for this transaction as a 201cstep acquisition 201d ( as defined by u.s .
gaap ) , which requires us to consolidate and record the assets and liabilities ofawe at fair value.accordingly , we recorded intangible assets of $ 243million related to customer relationships , $ 32 million of net liabilities , and noncontrolling interests of $ 107 million .

the intangible assets are being amortized over a period of eight years in accordance with the underlying pattern of economic benefit reflected by the future net cash flows .
in 2016we recognized a non-cash net gain of $ 104million associatedwith obtaining a controlling interest inawewhich consisted of a $ 127 million pretax gain recognized in the operating results of our space business segment and $ 23 million of tax-related items at our corporate office .

the gain represents the fair value of our 51% ( 51 % ) interest inawe , less the carrying value of our previously held investment inawe and deferred taxes .
the gainwas recorded in other income , net on our consolidated statements of earnings .
the fair value ofawe ( including the intangible assets ) , our controlling interest , and the noncontrolling interests were determined using the income approach .

divestiture of the information systems & global solutions business onaugust 16 , 2016wedivested our former is&gsbusinesswhichmergedwithleidos , in areversemorristrust transactionrr ( the 201ctransaction 201d ) .

the transaction was completed in a multi-step process pursuant to which we initially contributed the is&gs business to abacus innovations corporation ( abacus ) , a wholly owned subsidiary of lockheed martin created to facilitate the transaction , and the common stock ofabacus was distributed to participating lockheedmartin stockholders through an exchange offer .

under the terms of the exchange offer , lockheedmartin stockholders had the option to exchange shares of lockheedmartin common stock for shares of abacus common stock .

at the conclusion of the exchange offer , all shares of abacus common stock were exchanged for 9369694 shares of lockheed martin common stock held by lockheed martin stockholders that elected to participate in the exchange.the shares of lockheedmartin common stock thatwere exchanged and acceptedwere retired , reducing the number of shares of our common stock outstanding by approximately 3% ( 3 % ) .
following the exchange offer , abacus merged with

 |
| table | net sales                         | $ 45366
--------------------------------- | -------
net earnings                      | 3534
basic earnings per common share   | 11.39
diluted earnings per common share | 11.23 |


| _id | dd4b8db3c |
| 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 securities and exchange commission , nor shall such information be incorporated by reference into any future filing under the securities act of 1933 or securities exchange act of 1934 , each as amended , except to the extent that the company specifically incorporates such information by reference into such filing .

the following graph shows a five year comparison of cumulative total shareowners 2019 returns for our class b common stock , the 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 , 2005 in the standard & poor 2019s 500 index , the dow jones transportation average , and our class b common stock .
comparison of five year cumulative total return $ 40.00 $ 60.00 $ 80.00 $ 100.00 $ 120.00 $ 140.00 $ 160.00 201020092008200720062005 s&p 500 ups dj transport .

 |
| table | | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10
-------------------------------- | -------- | -------- | -------- | -------- | -------- | --------
united parcel service inc .      | $ 100.00 | $ 101.76 | $ 98.20  | $ 78.76  | $ 84.87  | $ 110.57
standard & poor 2019s 500 index  | $ 100.00 | $ 115.79 | $ 122.16 | $ 76.96  | $ 97.33  | $ 111.99
dow jones transportation average | $ 100.00 | $ 109.82 | $ 111.38 | $ 87.52  | $ 103.79 | $ 131.59 |