NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 82 Note 6—Income Taxes (Continued) A reconciliation of the provision for income taxes, with the amount computed by applying the statutory federal income tax rate (35% in 2005, 2004, and 2003) to income before provision for income taxes, is as follows (in millions):
## Table 0 ##
During 2005, the Company reversed certain tax contingency reserves and recorded a corresponding benefit to income tax expense primarily as a result of a change in the estimated outcome of certain tax disputes.
Additionally, during the fourth quarter of 2005, the Company recorded a benefit to tax expense to adjust its net deferred tax assets as a result of the Company’s year-end review of its deferred tax accounts, the impact of which was not material to the current or prior periods’ results of operations.
The total benefit to income tax expense from the reversal of these tax contingency reserves and adjustments to net deferred tax assets was $67 million.
The Company also recorded a $14 million credit to income tax expense resulting from a reduction of the valuation allowance.
The Internal Revenue Service (IRS) has completed its field audit of the Company’s federal income tax returns for all years prior to 2002 and proposed certain adjustments.
Certain of these adjustments are being contested through the IRS Appeals Office.
Substantially all IRS audit issues for these years have been resolved.
In addition, the Company is also subject to audits by state, local, and foreign tax authorities.
Management believes that adequate provisions have been made for any adjustments that may result from tax examinations.
However, the outcome of tax audits cannot be predicted with certainty.
Should any issues addressed in the Company’s tax audits be resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs.
Note 7—Shareholders’ Equity Preferred Stock The Company has 5 million shares of authorized preferred stock, none of which is outstanding.
Under the terms of the Company’s Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Company’s authorized but unissued shares of preferred stock.
The generation of $13.3 in excess U. S.  foreign tax credits in fiscal year 2019 increased the balance of the tax credits and other tax carryforwards component.
Of the $20.8 foreign tax credits, $5.8 have indefinite carryforward periods.
As of 30 September 2019, the Company had the following loss carryforwards:
## Table 1 ##
Of the $352.6 of foreign net operating loss carryforwards, $148.9 have indefinite carryforward periods.
The valuation allowance as of 30 September 2019 of $92.1 primarily related to $42.8 of foreign credits and loss carryforwards as well as $44.6 related to foreign capital losses that were generated from the loss recorded on the exit from the EfW business in 2016.
If events warrant the reversal of the valuation allowance, it would result in a reduction of tax expense.
We believe it is more likely than not that future earnings and reversal of deferred tax liabilities will be sufficient to utilize our deferred tax assets, net of existing valuation allowance, as of 30 September 2019.
As a result of the Tax Act, we recorded $373.2 of federal income tax from the deemed repatriation tax on approximately $5.8 billion of previously undistributed earnings from our foreign subsidiaries and corporate joint ventures.
These earnings are now eligible to be repatriated to the U. S.  with reduced U. S.  tax impacts.
However, such earnings may be subject to foreign withholding and other taxes.
We record foreign and U. S.  income taxes on the undistributed earnings of our foreign subsidiaries and corporate joint ventures unless those earnings are indefinitely reinvested.
The cumulative undistributed earnings that are considered to be indefinitely reinvested in foreign subsidiaries and corporate joint ventures are included in retained earnings on the consolidated balance sheets and amounted to $4.2 billion as of 30 September 2019.
An estimated $359.6 in additional foreign withholding and other income taxes would be due if these earnings were remitted as dividends.
A reconciliation of the beginning and ending amount of the unrecognized tax benefits is as follows:
## Table 2 ##
As of 30 September 2019 and 2018, we had $231.7 and $233.6 of unrecognized tax benefits, excluding interest and penalties, respectively, of which $75.0 and $88.6, respectively, would impact the effective tax rate from continuing operations if recognized.
Interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense and totaled $12.0, ($2.4), and $3.7 in fiscal years 2019, 2018, and 2017, respectively.
Our accrued balance for interest and penalties was $19.5 and $8.4 as of 30 September 2019 and 2018, respectively.
In fiscal year 2018, $119.2 in additions for tax positions of prior years related primarily to uncertain state tax filing positions taken related to the sale of PMD.
Additions for tax positions of the current year in fiscal year 2018 of $26.4 included uncertain tax positions related to the restructuring of foreign subsidiaries and reserves for ongoing transfer pricing uncertainties.
facilities, were $456 million and $435 million at December 31, 2013 and 2012, respectively.
O&R and Pike own their gas distribution systems and O&R owns a gas transmission system, which together include 1,862 miles of mains.
Natural gas is delivered to customers by the company through an estimated 104,713 service lines.
Gas Sales and Deliveries O&R generally recovers the cost of the gas that it buys and then sells to its firm sales customers.
It does not make any margin or profit on the gas it sells.
O&R’s gas revenues are subject to a weather normalization clause.
Effective November 2009, O&R’s New York gas revenues (which accounted for substantially all of O&R’s gas revenues in 2013) became subject to a revenue decoupling mechanism.
As a result, its gas delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
O&R’s gas deliveries and sales for the last five years were:
## Table 3 ##
For further discussion of the company’s gas operating revenues and its gas results, see “Results of Operations” in Item 7.
For additional segment information, see Note N to the financial statements in Item 8.
Gas Peak Demand The gas peak demand for firm service customers in O&R’s service area occurs during the winter heating season.
The daily peak day demand during the winter 2013/2014 (through January 31, 2014) occurred on January 7, 2014 when the demand reached 202 mdths.
The 2013/2014 peak demand included an estimated 92 mdths for O&R’s full-service customers and 110 mdths for customers participating in its gas retail access program.
“Design weather” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes.
The company estimates that, under design weather conditions, the 2014/2015 service area peak demand will be 218 mdths, including an estimated 100 mdths for its full-service customers and 118 mdths for its retail access customers.
The company forecasts average annual growth of the peak gas demand over the next five years at design conditions to be approximately 0.7 percent in the
Table of Contents QUALCOMM Incorporated NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Stock Repurchase Program.
On March 1, 2010, the Company announced that it had been authorized to repurchase up to $3.0 billion of the Company’s common stock.
The stock repurchase program has no expiration date.
When stock is repurchased and retired, the amount paid in excess of par value is recorded to paid-in capital.
During fiscal 2010, 2009 and 2008, the Company repurchased and retired 79,789,000, 8,920,000 and 42,616,000 shares of common stock, respectively, for $3.0 billion, $284 million and $1.7 billion, respectively, before commissions and excluding $14 million of premiums received related to put options that were exercised in fiscal 2008.
At September 26, 2010, approximately $1.7 billion remained authorized for repurchase under the Company’s stock repurchase program.
At September 26, 2010, September 27, 2009 and September 28, 2008, no put options remained outstanding.
During fiscal 2008, the Company recognized gains of $6 million in investment income due to decreases in the fair values of put options, including premiums received of $14 million.
Dividends.
The Company announced increases in its quarterly dividend per share of common stock from $0.14 to $0.16 on March 11, 2008, from $0.16 to $0.17 on March 3, 2009, and from $0.17 to $0.19 on March 1, 2010.
Cash dividends announced in fiscal 2010, 2009 and 2008 were as follows (in millions, except per share data):
## Table 4 ##
On October 13, 2010, the Company announced a cash dividend of $0.19 per share on the Company’s common stock, payable on December 22, 2010 to stockholders of record as of November 24, 2010, which will be reflected in the consolidated financial statements in the first quarter of fiscal 2011.
Note 8.
Employee Benefit Plans Employee Savings and Retirement Plan.
The Company has a 401(k) plan that allows eligible employees to contribute up to 100% of their eligible compensation, subject to annual limits.
The Company matches a portion of the employee contributions and may, at its discretion, make additional contributions based upon earnings.
The Company’s contribution expense was $46 million in fiscal 2010 and 2009 and $45 million in fiscal 2008.
Equity Compensation Plans.
The 2006 Long-Term Incentive Plan (the 2006 Plan) was adopted during the second quarter of fiscal 2006 and replaced the 2001 Stock Option Plan and the 2001 Non-Employee Directors’ Stock Option Plan and their predecessor plans (the Prior Plans).
The 2006 Plan provides for the grant of incentive and non-qualified stock options, restricted stock units, stock appreciation rights, restricted stock, performance units and shares and other stock-based awards and is the source of shares issued under the Executive Retirement Matching Contribution Plan (ERMCP).
The share reserve under the 2006 Plan was approximately 418,284,000 at September 26, 2010, including 13,000,000 shares that were approved by the Company’s stockholders in March 2010.
Shares subject to any outstanding option under a Prior Plan that is terminated or cancelled (but not an option under a Prior Plan that expires) following the date that the 2006 Plan was approved by stockholders, and shares that are subject to an award under the ERMCP and are returned to the Company because they fail to vest, will again become available for grant under the 2006 Plan.
The Board of Directors of the Company may amend or terminate the 2006 Plan at any time.
Certain amendments, including an increase in the share reserve, require stockholder approval.
During fiscal 2008, the Company assumed a total of approximately 1,462,000 outstanding stock options under various stock-based incentive plans (the Assumed Plans) as a result of acquisitions.
The Assumed Plans were suspended on the dates of acquisition, and no additional shares may be granted under those plans.
The Assumed Plans provided for the grant of both incentive stock options and non-qualified stock options.
Net share-based awards, after forfeitures and cancellations, granted during fiscal 2010, 2009 and 2008 represented 1.2%, 2.2% and 2.7% of outstanding shares as of the beginning of each fiscal year, respectively.
Total share-based awards granted during fiscal 2010, 2009 and 2008 represented 1.9%, 2.5% and 3.2%, respectively, of outstanding shares as of the end of each fiscal year.
Stock Options: The Board of Directors may grant options to selected employees, directors and consultants to the Company to purchase shares of the Company’s common stock at a price not less than the fair market value of the

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Computed expected tax</td><td>$636</td><td>$134</td><td>$32</td></tr><tr><td>State taxes, net of federal effect</td><td>-19</td><td>-5</td><td>-4</td></tr><tr><td>Indefinitely invested earnings of foreign subsidiaries</td><td>-98</td><td>-31</td><td>-13</td></tr><tr><td>Nondeductible executive compensation</td><td>11</td><td>10</td><td>5</td></tr><tr><td>Research and development credit, net</td><td>-26</td><td>-5</td><td>-7</td></tr><tr><td>Other items</td><td>-24</td><td>4</td><td>11</td></tr><tr><td>Provision for income taxes</td><td>$480</td><td>$107</td><td>$24</td></tr><tr><td>Effective tax rate</td><td>26%</td><td>28%</td><td>26%</td></tr></table>
<table><tr><td>Jurisdiction</td><td>Gross Loss Carryforward</td><td>Expiration Period</td></tr><tr><td>U.S. State Net Operating Loss</td><td>$296.3</td><td>2020 - 2034</td></tr><tr><td>U.S. Federal Capital Loss</td><td>1.8</td><td>2023</td></tr><tr><td>Foreign Net Operating Loss</td><td>352.6</td><td>2020 - 2029; Indefinite</td></tr><tr><td>Foreign Capital Loss</td><td>262.5</td><td>Indefinite</td></tr></table>
<table><tr><td>Unrecognized Tax Benefits</td><td>2019</td><td>2018</td><td>2017</td></tr><tr><td>Balance at beginning of year</td><td>$ 233.6</td><td>$ 146.4</td><td>$ 90.2</td></tr><tr><td>Additions for tax positions of the current year</td><td>7.8</td><td>26.4</td><td>47.5</td></tr><tr><td>Additions for tax positions of prior years</td><td>14.2</td><td>119.2</td><td>16.1</td></tr><tr><td>Reductions for tax positions of prior years</td><td>- 14.7</td><td>- 41.3</td><td>- 4.0</td></tr><tr><td>Settlements</td><td>- 1.5</td><td>- 14.2</td><td>- 2.0</td></tr><tr><td>Statute of limitations expiration</td><td>- 3.9</td><td>- 2.6</td><td>- 3.2</td></tr><tr><td>Foreign currency translation</td><td>- 3.8</td><td>- .3</td><td>1.8</td></tr><tr><td>Balance at End of Year</td><td>$ 231.7</td><td>$ 233.6</td><td>$ 146.4</td></tr></table>
<table><tr><td></td><td colspan="5"> Year Ended December 31,</td></tr><tr><td></td><td> 2009</td><td> 2010</td><td> 2011</td><td> 2012</td><td> 2013</td></tr><tr><td> Gas delivered (mdth)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Firm Sales</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Full service</td><td>9,561</td><td>8,772</td><td>8,384</td><td>7,539</td><td>8,808</td></tr><tr><td>Firm transportation</td><td>10,905</td><td>10,692</td><td>10,823</td><td>10,505</td><td>12,062</td></tr><tr><td> Total Firm Sales and Transportation</td><td>20,466</td><td>19,464</td><td>19,207</td><td>18,044</td><td>20,870</td></tr><tr><td>Interruptible Sales</td><td>2,390</td><td>675</td><td>8</td><td>1</td><td>1</td></tr><tr><td> Total Gas Sold To O&R Customers</td><td>22,856</td><td>20,139</td><td>19,215</td><td>18,045</td><td>20,871</td></tr><tr><td>Transportation of customer-owned gas</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Interruptible transportation</td><td>2,112</td><td>3,822</td><td>4,176</td><td>4,325</td><td>4,117</td></tr><tr><td>Sales for resale</td><td>953</td><td>840</td><td>864</td><td>793</td><td>885</td></tr><tr><td>Sales to electric generating stations</td><td>1,346</td><td>691</td><td>1,109</td><td>738</td><td>2,167</td></tr><tr><td>Off-System Sales</td><td>624</td><td>1</td><td>-</td><td>-</td><td>-</td></tr><tr><td> Total Sales and Transportation</td><td>27,891</td><td>25,493</td><td>25,364</td><td>23,901</td><td>28,040</td></tr><tr><td> Gas delivered ($ in millions)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Firm Sales</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Full service</td><td>$159</td><td>$131</td><td>$122</td><td>$103</td><td>$115</td></tr><tr><td>Firm transportation</td><td>51</td><td>65</td><td>71</td><td>76</td><td>77</td></tr><tr><td> Total Firm Sales and Transportation</td><td>210</td><td>196</td><td>193</td><td>179</td><td>192</td></tr><tr><td>Interruptible Sales</td><td>21</td><td>9</td><td>4</td><td>4</td><td>3</td></tr><tr><td> Total Gas Sold To O&R Customers</td><td>231</td><td>205</td><td>197</td><td>183</td><td>195</td></tr><tr><td>Transportation of customer-owned gas</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Sales to electric generating stations</td><td>2</td><td>-</td><td>1</td><td>-</td><td>-</td></tr><tr><td>Other operating revenues</td><td>9</td><td>13</td><td>16</td><td>20</td><td>10</td></tr><tr><td> Total Sales and Transportation</td><td>$242</td><td>$218</td><td>$214</td><td>$203</td><td>$205</td></tr><tr><td> Average Revenue Per dth Sold</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Residential</td><td>$16.86</td><td>$15.20</td><td>$14.84</td><td>$14.01</td><td>$13.31</td></tr><tr><td>General</td><td>$15.58</td><td>$13.64</td><td>$13.20</td><td>$11.99</td><td>$11.53</td></tr></table>
<table><tr><td></td><td colspan="2"> 2010</td><td colspan="2"> 2009</td><td colspan="2"> 2008</td></tr><tr><td></td><td> Per Share</td><td> Total</td><td> Per Share</td><td> Total</td><td> Per Share</td><td> Total</td></tr><tr><td>First quarter</td><td>$0.17</td><td>$284</td><td>$0.16</td><td>$264</td><td>$0.14</td><td>$228</td></tr><tr><td>Second quarter</td><td>0.17</td><td>279</td><td>0.16</td><td>264</td><td>0.14</td><td>227</td></tr><tr><td>Third quarter</td><td>0.19</td><td>309</td><td>0.17</td><td>282</td><td>0.16</td><td>261</td></tr><tr><td>Fourth quarter</td><td>0.19</td><td>305</td><td>0.17</td><td>283</td><td>0.16</td><td>266</td></tr><tr><td></td><td>$0.72</td><td>$1,177</td><td>$0.66</td><td>$1,093</td><td>$0.60</td><td>$982</td></tr></table>

Question: When is Total Gas Sold To O&R Customers the largest in terms of Gas delivered (mdth)?
Answer: 2009