table of contents valero energy corporation notes to consolidated financial statements ( continued ) 11 .
equity share activity activity in the number of shares of common stock and treasury stock was as follows ( in millions ) : common treasury .

                                                              | commonstock | treasurystock
------------------------------------------------------------- | ----------- | -------------
balance as of december 31 2015                                | 673         | -200 ( 200 )
transactions in connection withstock-based compensation plans | 2014        | 1
stock purchases under purchase program                        | 2014        | -23 ( 23 )
balance as of december 31 2016                                | 673         | -222 ( 222 )
transactions in connection withstock-based compensation plans | 2014        | 1
stock purchases under purchase programs                       | 2014        | -19 ( 19 )
balance as of december 31 2017                                | 673         | -240 ( 240 )
stock purchases under purchase programs                       | 2014        | -16 ( 16 )
balance as of december 31 2018                                | 673         | -256 ( 256 )

preferred stock we have 20 million shares of preferred stock authorized with a par value of $ 0.01 per share .
no shares of preferred stock were outstanding as of december 31 , 2018 or 2017 .
treasury stock we purchase shares of our common stock as authorized under our common stock purchase program ( described below ) and to meet our obligations under employee stock-based compensation plans .
on july 13 , 2015 , our board of directors authorized us to purchase $ 2.5 billion of our outstanding common stock with no expiration date , and we completed that program during 2017 .
on september 21 , 2016 , our board of directors authorized our purchase of up to an additional $ 2.5 billion with no expiration date , and we completed that program during 2018 .
on january 23 , 2018 , our board of directors authorized our purchase of up to an additional $ 2.5 billion ( the 2018 program ) with no expiration date .
during the years ended december 31 , 2018 , 2017 , and 2016 , we purchased $ 1.5 billion , $ 1.3 billion , and $ 1.3 billion , respectively , of our common stock under our programs .
as of december 31 , 2018 , we have approval under the 2018 program to purchase approximately $ 2.2 billion of our common stock .
common stock dividends on january 24 , 2019 , our board of directors declared a quarterly cash dividend of $ 0.90 per common share payable on march 5 , 2019 to holders of record at the close of business on february 13 , 2019 .
valero energy partners lp units on september 16 , 2016 , vlp entered into an equity distribution agreement pursuant to which vlp offered and sold from time to time their common units having an aggregate offering price of up to $ 350 million based on amounts , at prices , and on terms determined by market conditions and other factors at the time of


4 4 m a n a g e m e n t 2019 s d i s c u s s i o n notes to table ( continued ) ( a ) ( continued ) management believes that operating income , as adjusted , and operating margin , as adjusted , are effective indicators of blackrock 2019s financial performance over time .
as such , management believes that operating income , as adjusted , and operating margin , as adjusted , provide useful disclosure to investors .
operating income , as adjusted : bgi transaction and integration costs recorded in 2010 and 2009 consist principally of certain advisory payments , compensation expense , legal fees , marketing and promotional , occupancy and consulting expenses incurred in conjunction with the bgi transaction .
restructuring charges recorded in 2009 and 2008 consist of compensation costs , occupancy costs and professional fees .
the expenses associated with restructuring and bgi transaction and integration costs have been deemed non-recurring by management and have been excluded from operating income , as adjusted , to help enhance the comparability of this information to the current reporting periods .
as such , management believes that operating margins exclusive of these costs are useful measures in evaluating blackrock 2019s operating performance for the respective periods .
the portion of compensation expense associated with certain long-term incentive plans ( 201cltip 201d ) that will be funded through the distribution to participants of shares of blackrock stock held by pnc and a merrill lynch cash compensation contribution , a portion of which has been received , have been excluded because these charges ultimately do not impact blackrock 2019s book value .
compensation expense associated with appreciation/ ( depreciation ) on investments related to certain blackrock deferred compensation plans has been excluded as returns on investments set aside for these plans , which substantially offset this expense , are reported in non-operating income ( expense ) .
operating margin , as adjusted : operating income used for measuring operating margin , as adjusted , is equal to operating income , as adjusted , excluding the impact of closed-end fund launch costs and commissions .
management believes that excluding such costs and commissions is useful because these costs can fluctuate considerably and revenues associated with the expenditure of these costs will not fully impact the company 2019s results until future periods .
operating margin , as adjusted , allows the company to compare performance from period-to-period by adjusting for items that may not recur , recur infrequently or may fluctuate based on market movements , such as restructuring charges , transaction and integration costs , closed-end fund launch costs , commissions paid to certain employees as compensation and fluctua- tions in compensation expense based on mark-to-market movements in investments held to fund certain compensation plans .
the company also uses operating margin , as adjusted , to monitor corporate performance and efficiency and as a benchmark to compare its performance to other companies .
management uses both the gaap and non-gaap financial measures in evaluating the financial performance of blackrock .
the non-gaap measure by itself may pose limitations because it does not include all of the company 2019s revenues and expenses .
revenue used for operating margin , as adjusted , excludes distribution and servicing costs paid to related parties and other third parties .
management believes that excluding such costs is useful to blackrock because it creates consistency in the treatment for certain contracts for similar services , which due to the terms of the contracts , are accounted for under gaap on a net basis within investment advisory , administration fees and securities lending revenue .
amortization of deferred sales commissions is excluded from revenue used for operating margin measurement , as adjusted , because such costs , over time , offset distribution fee revenue earned by the company .
reimbursable property management compensation represented com- pensation and benefits paid to personnel of metric property management , inc .
( 201cmetric 201d ) , a subsidiary of blackrock realty advisors , inc .
( 201crealty 201d ) .
prior to the transfer in 2008 , these employees were retained on metric 2019s payroll when certain properties were acquired by realty 2019s clients .
the related compensation and benefits were fully reimbursed by realty 2019s clients and have been excluded from revenue used for operating margin , as adjusted , because they did not bear an economic cost to blackrock .
for each of these items , blackrock excludes from revenue used for operating margin , as adjusted , the costs related to each of these items as a proxy for such offsetting revenues .
( b ) non-operating income ( expense ) , less net income ( loss ) attributable to non-controlling interests , as adjusted : non-operating income ( expense ) , less net income ( loss ) attributable to non-controlling interests ( 201cnci 201d ) , as adjusted , equals non-operating income ( expense ) , gaap basis , less net income ( loss ) attributable to nci , gaap basis , adjusted for compensation expense associated with depreciation/ ( appreciation ) on investments related to certain blackrock deferred compensation plans .
the compensation expense offset is recorded in operating income .
this compensation expense has been included in non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , to offset returns on investments set aside for these plans , which are reported in non-operating income ( expense ) , gaap basis. .

( dollar amounts in millions )                                                                | yearended december 31 , 2010 | yearended december 31 , 2009 | yearended december 31 , 2008
--------------------------------------------------------------------------------------------- | ---------------------------- | ---------------------------- | ----------------------------
non-operating income ( expense ) gaap basis                                                   | $ 23                         | $ -6 ( 6 )                   | $ -577 ( 577 )
less : net income ( loss ) attributable to nci                                                | -13 ( 13 )                   | 22                           | -155 ( 155 )
non-operating income ( expense ) ( 1 )                                                        | 36                           | -28 ( 28 )                   | -422 ( 422 )
compensation expense related to ( appreciation ) /depreciation on deferred compensation plans | -11 ( 11 )                   | -18 ( 18 )                   | 38
non-operating income ( expense ) less net income ( loss ) attributable to nci as adjusted     | $ 25                         | $ -46 ( 46 )                 | $ -384 ( 384 )

non-operating income ( expense ) ( 1 ) 36 ( 28 ) ( 422 ) compensation expense related to ( appreciation ) / depreciation on deferred compensation plans ( 11 ) ( 18 ) 38 non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted $ 25 ( $ 46 ) ( $ 384 ) ( 1 ) net of net income ( loss ) attributable to non-controlling interests .
management believes that non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides for comparability of this information to prior periods and is an effective measure for reviewing blackrock 2019s non-operating contribution to its results .
as compensation expense associated with ( appreciation ) /depreciation on investments related to certain deferred compensation plans , which is included in operating income , offsets the gain/ ( loss ) on the investments set aside for these plans , management believes that non-operating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides a useful measure , for both management and investors , of blackrock 2019s non-operating results that impact book value.


repurchase of equity securities the following table provides information regarding our purchases of equity securities during the fourth quarter of 2008 : number of shares purchased average paid per share2 total number of shares purchased as part of publicly announced plans or programs maximum number of shares that may yet be purchased under the plans or programs .

              | total number of shares purchased | average price paid per share2 | total number of shares purchased as part of publicly announced plans or programs | maximum number ofshares that may yet be purchased under the plans or programs
------------- | -------------------------------- | ----------------------------- | -------------------------------------------------------------------------------- | -----------------------------------------------------------------------------
october 1-31  | 29704                            | $ 5.99                        | 2014                                                                             | 2014
november 1-30 | 4468                             | $ 3.24                        | 2014                                                                             | 2014
december 1-31 | 12850                            | $ 3.98                        | 2014                                                                             | 2014
total1        | 47022                            | $ 5.18                        | 2014                                                                             | 2014

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47022 $ 5.18 2014 2014 1 consists of restricted shares of our common stock withheld under the terms of grants under employee stock compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares during each month of the fourth quarter of 2008 ( the 201cwithheld shares 201d ) .
2 the average price per month of the withheld shares was calculated by dividing the aggregate value of the tax withholding obligations for each month by the aggregate number of shares of our common stock withheld each month.


table of contents ( 2 ) includes capitalized lease obligations of $ 3.2 million and $ 0.1 million as of december 31 , 2015 and 2014 , respectively , which are included in other liabilities on the consolidated balance sheet .
( 3 ) ebitda is defined as consolidated net income before interest expense , income tax expense , depreciation and amortization .
adjusted ebitda , which is a measure defined in our credit agreements , means ebitda adjusted for certain items which are described in the table below .
we have included a reconciliation of ebitda and adjusted ebitda in the table below .
both ebitda and adjusted ebitda are considered non-gaap financial measures .
generally , a non-gaap financial measure is a numerical measure of a company 2019s performance , financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with gaap .
non-gaap measures used by us may differ from similar measures used by other companies , even when similar terms are used to identify such measures .
we believe that ebitda and adjusted ebitda provide helpful information with respect to our operating performance and cash flows including our ability to meet our future debt service , capital expenditures and working capital requirements .
adjusted ebitda is also the primary measure used in certain key covenants and definitions contained in the credit agreement governing our senior secured term loan facility ( 201cterm loan 201d ) , including the excess cash flow payment provision , the restricted payment covenant and the net leverage ratio .
these covenants and definitions are material components of the term loan as they are used in determining the interest rate applicable to the term loan , our ability to make certain investments , incur additional debt , and make restricted payments , such as dividends and share repurchases , as well as whether we are required to make additional principal prepayments on the term loan beyond the quarterly amortization payments .
for further details regarding the term loan , see note 8 ( long-term debt ) to the accompanying consolidated financial statements .
the following unaudited table sets forth reconciliations of net income to ebitda and ebitda to adjusted ebitda for the periods presented: .

( in millions )                                    | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
-------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income                                         | $ 403.1                        | $ 244.9                        | $ 132.8                        | $ 119.0                        | $ 17.1
depreciation and amortization                      | 227.4                          | 207.9                          | 208.2                          | 210.2                          | 204.9
income tax expense                                 | 243.9                          | 142.8                          | 62.7                           | 67.1                           | 11.2
interest expense net                               | 159.5                          | 197.3                          | 250.1                          | 307.4                          | 324.2
ebitda                                             | 1033.9                         | 792.9                          | 653.8                          | 703.7                          | 557.4
non-cash equity-based compensation                 | 31.2                           | 16.4                           | 8.6                            | 22.1                           | 19.5
net loss on extinguishment of long-term debt ( a ) | 24.3                           | 90.7                           | 64.0                           | 17.2                           | 118.9
loss ( income ) from equity investments ( b )      | 10.1                           | -2.2 ( 2.2 )                   | -0.6 ( 0.6 )                   | -0.3 ( 0.3 )                   | -0.1 ( 0.1 )
acquisition and integration expenses ( c )         | 10.2                           | 2014                           | 2014                           | 2014                           | 2014
gain on remeasurement of equity investment ( d )   | -98.1 ( 98.1 )                 | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( e )                            | 6.9                            | 9.2                            | 82.7                           | 23.9                           | 21.6
adjusted ebitda ( f )                              | $ 1018.5                       | $ 907.0                        | $ 808.5                        | $ 766.6                        | $ 717.3

net loss on extinguishment of long-term debt ( a ) 24.3 90.7 64.0 17.2 118.9 loss ( income ) from equity investments ( b ) 10.1 ( 2.2 ) ( 0.6 ) ( 0.3 ) ( 0.1 ) acquisition and integration expenses ( c ) 10.2 2014 2014 2014 2014 gain on remeasurement of equity investment ( d ) ( 98.1 ) 2014 2014 2014 2014 other adjustments ( e ) 6.9 9.2 82.7 23.9 21.6 adjusted ebitda ( f ) $ 1018.5 $ 907.0 $ 808.5 $ 766.6 $ 717.3 ( a ) during the years ended december 31 , 2015 , 2014 , 2013 , 2012 , and 2011 , we recorded net losses on extinguishments of long-term debt .
the losses represented the difference between the amount paid upon extinguishment , including call premiums and expenses paid to the debt holders and agents , and the net carrying amount of the extinguished debt , adjusted for a portion of the unamortized deferred financing costs .
( b ) represents our share of net income/loss from our equity investments .
our 35% ( 35 % ) share of kelway 2019s net loss includes our 35% ( 35 % ) share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to the acquisition .
( c ) primarily includes expenses related to the acquisition of kelway .
( d ) represents the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway.


part ii , item 8 schlumberger limited and subsidiaries shares of common stock ( stated in millions ) issued in treasury shares outstanding .

                                                 | issued | in treasury  | shares outstanding
------------------------------------------------ | ------ | ------------ | ------------------
balance january 1 2007                           | 1334   | -156 ( 156 ) | 1178
shares sold to optionees less shares exchanged   | 2013   | 14           | 14
shares issued under employee stock purchase plan | 2013   | 2            | 2
stock repurchase program                         | 2013   | -16 ( 16 )   | -16 ( 16 )
issued on conversions of debentures              | 2013   | 18           | 18
balance december 31 2007                         | 1334   | -138 ( 138 ) | 1196
shares sold to optionees less shares exchanged   | 2013   | 5            | 5
shares issued under employee stock purchase plan | 2013   | 2            | 2
stock repurchase program                         | 2013   | -21 ( 21 )   | -21 ( 21 )
issued on conversions of debentures              | 2013   | 12           | 12
balance december 31 2008                         | 1334   | -140 ( 140 ) | 1194
shares sold to optionees less shares exchanged   | 2013   | 4            | 4
vesting of restricted stock                      | 2013   | 1            | 1
shares issued under employee stock purchase plan | 2013   | 4            | 4
stock repurchase program                         | 2013   | -8 ( 8 )     | -8 ( 8 )
balance december 31 2009                         | 1334   | -139 ( 139 ) | 1195

see the notes to consolidated financial statements


comparison of cumulative return among lkq corporation , the nasdaq stock market ( u.s. ) index and the peer group .

                | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
--------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
lkq corporation | $ 100      | $ 140      | $ 219      | $ 187      | $ 197      | $ 204
s&p 500 index   | $ 100      | $ 113      | $ 147      | $ 164      | $ 163      | $ 178
peer group      | $ 100      | $ 111      | $ 140      | $ 177      | $ 188      | $ 217

this stock performance information is "furnished" and shall not be deemed to be "soliciting material" or subject to rule 14a , shall not be deemed "filed" for purposes of section 18 of the securities exchange act of 1934 or otherwise subject to the liabilities of that section , and shall not be deemed incorporated by reference in any filing under the securities act of 1933 or the securities exchange act of 1934 , whether made before or after the date of this report and irrespective of any general incorporation by reference language in any such filing , except to the extent that it specifically incorporates the information by reference .
information about our common stock that may be issued under our equity compensation plans as of december 31 , 2016 included in part iii , item 12 of this annual report on form 10-k is incorporated herein by reference.


n o t e s t o t h e c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s 2013 ( continued ) ace limited and subsidiaries excluded from adjusted weighted-average shares outstanding and assumed conversions is the impact of securities that would have been anti-dilutive during the respective years .
for the years ended december 31 , 2010 , 2009 , and 2008 , the potential anti-dilutive share conversions were 256868 shares , 1230881 shares , and 638401 shares , respectively .
19 .
related party transactions the ace foundation 2013 bermuda is an unconsolidated not-for-profit organization whose primary purpose is to fund charitable causes in bermuda .
the trustees are principally comprised of ace management .
the company maintains a non-interest bear- ing demand note receivable from the ace foundation 2013 bermuda , the balance of which was $ 30 million and $ 31 million , at december 31 , 2010 and 2009 , respectively .
the receivable is included in other assets in the accompanying consolidated balance sheets .
the borrower has used the related proceeds to finance investments in bermuda real estate , some of which have been rented to ace employees at rates established by independent , professional real estate appraisers .
the borrower uses income from the investments to both repay the note and to fund charitable activities .
accordingly , the company reports the demand note at the lower of its principal value or the fair value of assets held by the borrower to repay the loan , including the real estate properties .
20 .
statutory financial information the company 2019s insurance and reinsurance subsidiaries are subject to insurance laws and regulations in the jurisdictions in which they operate .
these regulations include restrictions that limit the amount of dividends or other distributions , such as loans or cash advances , available to shareholders without prior approval of the insurance regulatory authorities .
there are no statutory restrictions on the payment of dividends from retained earnings by any of the bermuda subsidiaries as the minimum statutory capital and surplus requirements are satisfied by the share capital and additional paid-in capital of each of the bermuda subsidiaries .
the company 2019s u.s .
subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators .
statutory accounting differs from gaap in the reporting of certain reinsurance contracts , investments , subsidiaries , acquis- ition expenses , fixed assets , deferred income taxes , and certain other items .
the statutory capital and surplus of the u.s .
subsidiaries met regulatory requirements for 2010 , 2009 , and 2008 .
the amount of dividends available to be paid in 2011 , without prior approval from the state insurance departments , totals $ 850 million .
the following table presents the combined statutory capital and surplus and statutory net income of the bermuda and u.s .
subsidiaries at and for the years ended december 31 , 2010 , 2009 , and 2008. .

( in millions of u.s . dollars ) | bermuda subsidiaries 2010 | bermuda subsidiaries 2009 | bermuda subsidiaries 2008 | bermuda subsidiaries 2010 | bermuda subsidiaries 2009 | 2008
-------------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------
statutory capital and surplus    | $ 11798                   | $ 9164                    | $ 6205                    | $ 6266                    | $ 5885                    | $ 5368
statutory net income             | $ 2430                    | $ 2369                    | $ 2196                    | $ 1047                    | $ 904                     | $ 818

as permitted by the restructuring discussed previously in note 7 , certain of the company 2019s u.s .
subsidiaries discount certain a&e liabilities , which increased statutory capital and surplus by approximately $ 206 million , $ 215 million , and $ 211 million at december 31 , 2010 , 2009 , and 2008 , respectively .
the company 2019s international subsidiaries prepare statutory financial statements based on local laws and regulations .
some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements .
in some countries , the company must obtain licenses issued by governmental authorities to conduct local insurance business .
these licenses may be subject to reserves and minimum capital and solvency tests .
jurisdictions may impose fines , censure , and/or criminal sanctions for violation of regulatory requirements.


a reconciliation of the beginning and ending amount of unrecognized tax benefits , for the periods indicated , is as follows: .

( dollars in thousands )                                     | 2010             | 2009             | 2008
------------------------------------------------------------ | ---------------- | ---------------- | -------
balance at january 1                                         | $ 29010          | $ 34366          | $ 29132
additions based on tax positions related to the current year | 7119             | 6997             | 5234
additions for tax positions of prior years                   | -                | -                | -
reductions for tax positions of prior years                  | -                | -                | -
settlements with taxing authorities                          | -12356 ( 12356 ) | -12353 ( 12353 ) | -
lapses of applicable statutes of limitations                 | -                | -                | -
balance at december 31                                       | $ 23773          | $ 29010          | $ 34366

the entire amount of the unrecognized tax benefits would affect the effective tax rate if recognized .
in 2010 , the company favorably settled a 2003 and 2004 irs audit .
the company recorded a net overall tax benefit including accrued interest of $ 25920 thousand .
in addition , the company was also able to take down a $ 12356 thousand fin 48 reserve that had been established regarding the 2003 and 2004 irs audit .
the company is no longer subject to u.s .
federal , state and local or foreign income tax examinations by tax authorities for years before 2007 .
the company recognizes accrued interest related to net unrecognized tax benefits and penalties in income taxes .
during the years ended december 31 , 2010 , 2009 and 2008 , the company accrued and recognized a net expense ( benefit ) of approximately $ ( 9938 ) thousand , $ 1563 thousand and $ 2446 thousand , respectively , in interest and penalties .
included within the 2010 net expense ( benefit ) of $ ( 9938 ) thousand is $ ( 10591 ) thousand of accrued interest related to the 2003 and 2004 irs audit .
the company is not aware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date .
for u.s .
income tax purposes the company has foreign tax credit carryforwards of $ 55026 thousand that begin to expire in 2014 .
in addition , for u.s .
income tax purposes the company has $ 41693 thousand of alternative minimum tax credits that do not expire .
management believes that it is more likely than not that the company will realize the benefits of its net deferred tax assets and , accordingly , no valuation allowance has been recorded for the periods presented .
tax benefits of $ 629 thousand and $ 1714 thousand related to share-based compensation deductions for stock options exercised in 2010 and 2009 , respectively , are included within additional paid-in capital of the shareholders 2019 equity section of the consolidated balance sheets.


republic services , inc .
notes to consolidated financial statements 2014 ( continued ) 16 .
financial instruments fuel hedges we have entered into multiple swap agreements designated as cash flow hedges to mitigate some of our exposure related to changes in diesel fuel prices .
these swaps qualified for , and were designated as , effective hedges of changes in the prices of forecasted diesel fuel purchases ( fuel hedges ) .
the following table summarizes our outstanding fuel hedges as of december 31 , 2016 : year gallons hedged weighted average contract price per gallon .

year | gallons hedged | weighted average contractprice per gallon
---- | -------------- | -----------------------------------------
2017 | 12000000       | $ 2.92
2018 | 3000000        | 2.61

if the national u.s .
on-highway average price for a gallon of diesel fuel as published by the department of energy exceeds the contract price per gallon , we receive the difference between the average price and the contract price ( multiplied by the notional gallons ) from the counterparty .
if the average price is less than the contract price per gallon , we pay the difference to the counterparty .
the fair values of our fuel hedges are determined using standard option valuation models with assumptions about commodity prices based on those observed in underlying markets ( level 2 in the fair value hierarchy ) .
the aggregate fair values of our outstanding fuel hedges as of december 31 , 2016 and 2015 were current liabilities of $ 2.7 million and $ 37.8 million , respectively , and have been recorded in other accrued liabilities in our consolidated balance sheets .
the ineffective portions of the changes in fair values resulted in a gain of $ 0.8 million for the year ended december 31 , 2016 , and a loss of $ 0.4 million and $ 0.5 million for the years ended december 31 , 2015 and 2014 , respectively , and have been recorded in other income , net in our consolidated statements of income .
total gain ( loss ) recognized in other comprehensive income ( loss ) for fuel hedges ( the effective portion ) was $ 20.7 million , $ ( 2.0 ) million and $ ( 24.2 ) million , for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
we classify cash inflows and outflows from our fuel hedges within operating activities in the unaudited consolidated statements of cash flows .
recycling commodity hedges revenue from the sale of recycled commodities is primarily from sales of old corrugated containers and old newsprint .
from time to time we use derivative instruments such as swaps and costless collars designated as cash flow hedges to manage our exposure to changes in prices of these commodities .
during 2016 , we entered into multiple agreements related to the forecasted occ sales .
the agreements qualified for , and were designated as , effective hedges of changes in the prices of certain forecasted recycling commodity sales ( commodity hedges ) .
we entered into costless collar agreements on forecasted sales of occ .
the agreements involve combining a purchased put option giving us the right to sell occ at an established floor strike price with a written call option obligating us to deliver occ at an established cap strike price .
the puts and calls have the same settlement dates , are net settled in cash on such dates and have the same terms to expiration .
the contemporaneous combination of options resulted in no net premium for us and represents costless collars .
under these agreements , we will make or receive no payments as long as the settlement price is between the floor price and cap price ; however , if the settlement price is above the cap , we will pay the counterparty an amount equal to the excess of the settlement price over the cap times the monthly volumes hedged .
if the settlement price is below the floor , the counterparty will pay us the deficit of the settlement price below the floor times the monthly volumes hedged .
the objective of these agreements is to reduce variability of cash flows for forecasted sales of occ between two designated strike prices.


notes to consolidated financial statements gains and losses on financial assets and financial liabilities accounted for at fair value under the fair value option the table below presents the gains and losses recognized as a result of the firm electing to apply the fair value option to certain financial assets and financial liabilities .
these gains and losses are included in 201cmarket making 201d and 201cother principal transactions . 201d the table below also includes gains and losses on the embedded derivative component of hybrid financial instruments included in unsecured short-term borrowings and unsecured long-term borrowings .
these gains and losses would have been recognized under other u.s .
gaap even if the firm had not elected to account for the entire hybrid instrument at fair value .
the amounts in the table exclude contractual interest , which is included in 201cinterest income 201d and 201cinterest expense , 201d for all instruments other than hybrid financial instruments .
see note 23 for further information about interest income and interest expense .
gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december in millions 2012 2011 2010 receivables from customers and counterparties 1 $ 190 $ 97 $ ( 97 ) .

in millions                                   | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2012 | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2011 | gains/ ( losses ) on financial assets and financial liabilities at fair value under the fair value option year ended december 2010
--------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------
receivables from customers andcounterparties1 | $ 190                                                                                | $ 97                                                                                | $ -97 ( 97 )
other secured financings                      | -190 ( 190 )                                                                                | -63 ( 63 )                                                                                | -227 ( 227 )
unsecured short-term borrowings2              | -973 ( 973 )                                                                                | 2149                                                                                | -1455 ( 1455 )
unsecured long-term borrowings3               | -1523 ( 1523 )                                                                                | 2336                                                                                | -1169 ( 1169 )
other liabilities and accrued expenses4       | -1486 ( 1486 )                                                                                | -911 ( 911 )                                                                                | 50
other5                                        | -81 ( 81 )                                                                                | 90                                                                                | -10 ( 10 )
total                                         | $ -4063 ( 4063 )                                                                                | $ 3698                                                                                | $ -2908 ( 2908 )

1 .
primarily consists of gains/ ( losses ) on certain reinsurance contracts and certain transfers accounted for as receivables rather than purchases .
2 .
includes gains/ ( losses ) on the embedded derivative component of hybrid financial instruments of $ ( 814 ) million , $ 2.01 billion , and $ ( 1.49 ) billion as of december 2012 , december 2011 and december 2010 , respectively .
3 .
includes gains/ ( losses ) on the embedded derivative component of hybrid financial instruments of $ ( 887 ) million , $ 1.80 billion and $ ( 1.32 ) billion as of december 2012 , december 2011 and december 2010 , respectively .
4 .
primarily consists of gains/ ( losses ) on certain insurance contracts .
5 .
primarily consists of gains/ ( losses ) on resale and repurchase agreements , securities borrowed and loaned and deposits .
excluding the gains and losses on the instruments accounted for under the fair value option described above , 201cmarket making 201d and 201cother principal transactions 201d primarily represent gains and losses on 201cfinancial instruments owned , at fair value 201d and 201cfinancial instruments sold , but not yet purchased , at fair value . 201d 150 goldman sachs 2012 annual report


facility continue to have a maturity date of october 2016 .
in addition , the maturity date of the company's revolving credit facility was extended to october 2018 and the facility was increased to $ 900 million from $ 600 million .
accordingly , the amended credit agreement consists of the term c-2 loan facility , the term c-3 loan facility and a $ 900 million revolving credit facility .
net deferred financing costs are as follows : net deferred financing costs ( in $ millions ) .

                                                           | net deferred financing costs ( in $ millions )
---------------------------------------------------------- | ----------------------------------------------
as of december 31 2011                                     | 28
financing costs deferred ( 1 )                             | 8
accelerated amortization due to refinancing activity ( 2 ) | -1 ( 1 )
amortization                                               | -5 ( 5 )
as of december 31 2012                                     | 30
financing costs deferred ( 3 )                             | 2
accelerated amortization due to refinancing activity       | 2014
amortization                                               | -5 ( 5 )
as of december 31 2013                                     | 27
financing costs deferred ( 4 )                             | 10
accelerated amortization due to refinancing activity ( 5 ) | -5 ( 5 )
amortization                                               | -5 ( 5 )
as of december 31 2014                                     | 27

____________________________ ( 1 ) relates to the issuance of the 4.625% ( 4.625 % ) notes .
( 2 ) relates to the $ 400 million prepayment of the term c loan facility with proceeds from the 4.625% ( 4.625 % ) notes .
( 3 ) relates to the september 2013 amendment to the celanese us existing senior secured credit facilities to reduce the interest rates payable in connection with certain borrowings thereby creating the term c-2 loan facility due 2016 .
( 4 ) includes $ 6 million related to the issuance of the 3.250% ( 3.250 % ) notes and $ 4 million related to the september 24 , 2014 amendment to the celanese us existing senior secured credit facilities .
( 5 ) includes $ 4 million related to the 6.625% ( 6.625 % ) notes redemption and $ 1 million related to the term c-2 loan facility conversion .
as of december 31 , 2014 , the margin for borrowings under the term c-2 loan facility was 2.0% ( 2.0 % ) above the euro interbank offered rate ( "euribor" ) and the margin for borrowings under the term c-3 loan facility was 2.25% ( 2.25 % ) above libor ( for us dollars ) and 2.25% ( 2.25 % ) above euribor ( for euros ) , as applicable .
as of december 31 , 2014 , the margin for borrowings under the revolving credit facility was 1.5% ( 1.5 % ) above libor .
the margin for borrowings under the revolving credit facility is subject to increase or decrease in certain circumstances based on changes in the corporate credit ratings of celanese or celanese us .
term loan borrowings under the amended credit agreement are subject to amortization at 1% ( 1 % ) of the initial principal amount per annum , payable quarterly .
in addition , the company pays quarterly commitment fees on the unused portion of the revolving credit facility of 0.25% ( 0.25 % ) per annum .
the amended credit agreement is guaranteed by celanese and certain domestic subsidiaries of celanese us and is secured by a lien on substantially all assets of celanese us and such guarantors , subject to certain agreed exceptions ( including for certain real property and certain shares of foreign subsidiaries ) , pursuant to the guarantee and collateral agreement , dated april 2 , as a condition to borrowing funds or requesting letters of credit be issued under the revolving credit facility , the company's first lien senior secured leverage ratio ( as calculated as of the last day of the most recent fiscal quarter for which financial statements have been delivered under the revolving facility ) cannot exceed the threshold as specified below .
further , the company's first lien senior secured leverage ratio must be maintained at or below that threshold while any amounts are outstanding under the revolving credit facility.


american tower corporation and subsidiaries notes to consolidated financial statements the company expects the unrecognized tax benefits to change over the next 12 months if certain tax matters ultimately settle with the applicable taxing jurisdiction during this timeframe , or if the applicable statute of limitations lapses .
the impact of the amount of such changes to previously recorded uncertain tax positions could range from zero to $ 10.8 million .
a reconciliation of the beginning and ending amount of unrecognized tax benefits are as follows for the years ended december 31 , ( in thousands ) : .

                                                                                | 2016           | 2015           | 2014
-------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
balance at january 1                                                                   | $ 28114        | $ 31947        | $ 32545
additions based on tax positions related to the current year                           | 82912          | 5042           | 4187
additions for tax positions of prior years                                             | 2014           | 2014           | 3780
foreign currency                                                                       | -307 ( 307 )   | -5371 ( 5371 ) | -3216 ( 3216 )
reduction as a result of the lapse of statute of limitations and effective settlements | -3168 ( 3168 ) | -3504 ( 3504 ) | -5349 ( 5349 )
balance at december 31                                                                 | $ 107551       | $ 28114        | $ 31947

during the years ended december 31 , 2016 , 2015 and 2014 , the statute of limitations on certain unrecognized tax benefits lapsed and certain positions were effectively settled , which resulted in a decrease of $ 3.2 million , $ 3.5 million and $ 5.3 million , respectively , in the liability for uncertain tax benefits , all of which reduced the income tax provision .
the company recorded penalties and tax-related interest expense to the tax provision of $ 9.2 million , $ 3.2 million and $ 6.5 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
in addition , due to the expiration of the statute of limitations in certain jurisdictions , the company reduced its liability for penalties and income tax-related interest expense related to uncertain tax positions during the years ended december 31 , 2016 , 2015 and 2014 by $ 3.4 million , $ 3.1 million and $ 9.9 million , respectively .
as of december 31 , 2016 and 2015 , the total amount of accrued income tax-related interest and penalties included in the consolidated balance sheets were $ 24.3 million and $ 20.2 million , respectively .
the company has filed for prior taxable years , and for its taxable year ended december 31 , 2016 will file , numerous consolidated and separate income tax returns , including u.s .
federal and state tax returns and foreign tax returns .
the company is subject to examination in the u.s .
and various state and foreign jurisdictions for certain tax years .
as a result of the company 2019s ability to carryforward federal , state and foreign nols , the applicable tax years generally remain open to examination several years after the applicable loss carryforwards have been used or have expired .
the company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions resulting from these examinations .
the company believes that adequate provisions have been made for income taxes for all periods through december 31 , 2016 .
13 .
stock-based compensation summary of stock-based compensation plans 2014the company maintains equity incentive plans that provide for the grant of stock-based awards to its directors , officers and employees .
the 2007 equity incentive plan ( the 201c2007 plan 201d ) provides for the grant of non-qualified and incentive stock options , as well as restricted stock units , restricted stock and other stock-based awards .
exercise prices in the case of non-qualified and incentive stock options are not less than the fair value of the underlying common stock on the date of grant .
equity awards typically vest ratably , generally over four years for rsus and stock options and three years for psus .
stock options generally expire 10 years from the date of grant .
as of december 31 , 2016 , the company had the ability to grant stock-based awards with respect to an aggregate of 9.5 million shares of common stock under the 2007 plan .
in addition , the company maintains an employee stock purchase plan ( the 201cespp 201d ) pursuant to which eligible employees may purchase shares of the company 2019s common stock on the last day of each bi-annual offering period at a discount of the lower of the closing market value on the first or last day of such offering period .
the offering periods run from june 1 through november 30 and from december 1 through may 31 of each year .
during the years ended december 31 , 2016 , 2015 and 2014 , the company recorded and capitalized the following stock-based compensation expenses ( in thousands ) :


sources and uses of cash ( in millions ) in summary , our cash flows for each period were as follows : years ended ( in millions ) dec 29 , dec 30 , dec 31 .

years ended ( in millions )                            | dec 292018       | dec 302017       | dec 312016
------------------------------------------------------ | ---------------- | ---------------- | ----------------
net cash provided by operating activities              | $ 29432          | $ 22110          | $ 21808
net cash used for investing activities                 | -11239 ( 11239 ) | -15762 ( 15762 ) | -25817 ( 25817 )
net cash provided by ( used for ) financing activities | -18607 ( 18607 ) | -8475 ( 8475 )   | -5739 ( 5739 )
net increase ( decrease ) in cash and cash equivalents | $ -414 ( 414 )   | $ -2127 ( 2127 ) | $ -9748 ( 9748 )

md&a consolidated results and analysis 40


performance graph the following graph compares the total return , assuming reinvestment of dividends , on an investment in the company , based on performance of the company's common stock , with the total return of the standard & poor's 500 composite stock index and the dow jones united states travel and leisure index for a five year period by measuring the changes in common stock prices from december 31 , 2012 to december 31 , 2017. .

                              | 12/12  | 12/13  | 12/14  | 12/15  | 12/16  | 12/17
----------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd . | 100.00 | 142.11 | 251.44 | 313.65 | 260.04 | 385.47
s&p 500                       | 100.00 | 132.39 | 150.51 | 152.59 | 170.84 | 208.14
dow jones us travel & leisure | 100.00 | 145.48 | 169.28 | 179.27 | 192.85 | 238.77

the stock performance graph assumes for comparison that the value of the company's common stock and of each index was $ 100 on december 31 , 2012 and that all dividends were reinvested .
past performance is not necessarily an indicator of future results.


secured financing is primarily conducted through citi 2019s broker-dealer subsidiaries to facilitate customer matched-book activity and to efficiently fund a portion of the trading inventory .
secured financing appears as a liability on citi 2019s consolidated balance sheet ( 201csecurities loaned or sold under agreements to repurchase 201d ) .
as of december 31 , 2010 , secured financing was $ 189.6 billion and averaged approximately $ 207 billion during the quarter ended december 31 , 2010 .
secured financing at december 31 , 2010 increased by $ 35 billion from $ 154.3 billion at december 31 , 2009 .
during the same period , reverse repos and securities borrowing increased by $ 25 billion .
the majority of secured financing is collateralized by highly liquid government , government-backed and government agency securities .
this collateral comes primarily from citi 2019s trading assets and its secured lending , and is part of citi 2019s client matched-book activity given that citi both borrows and lends similar asset types on a secured basis .
the minority of secured financing is collateralized by less liquid collateral , and supports both citi 2019s trading assets as well as the business of secured lending to customers , which is also part of citi 2019s client matched-book activity .
the less liquid secured borrowing is carefully calibrated by asset quality , tenor and counterparty exposure , including those that might be sensitive to ratings stresses , in order to increase the reliability of the funding .
citi believes there are several potential mitigants available to it in the event of stress on the secured financing markets for less liquid collateral .
citi 2019s significant liquidity resources in its non-bank entities as of december 31 , 2010 , supplemented by collateralized liquidity transfers between entities , provide a cushion .
within the matched-book activity , the secured lending positions , which are carefully managed in terms of collateral and tenor , could be unwound to provide additional liquidity under stress .
citi also has excess funding capacity for less liquid collateral with existing counterparties that can be accessed during potential dislocation .
in addition , citi has the ability to adjust the size of select trading books to provide further mitigation .
at december 31 , 2010 , commercial paper outstanding for citigroup 2019s non- bank entities and bank subsidiaries , respectively , was as follows : in billions of dollars non-bank bank ( 1 ) citigroup .

in billions of dollars | non-bank | bank   | -1 ( 1 ) | total citigroup
---------------------- | -------- | ------ | -------- | ---------------
commercial paper       | $ 9.7    | $ 15.0 |          | $ 24.7

( 1 ) includes $ 15 billion of commercial paper related to vies consolidated effective january 1 , 2010 with the adoption of sfas 166/167 .
other short-term borrowings of approximately $ 54 billion ( as set forth in the secured financing and short-term borrowings table above ) include $ 42.4 billion of borrowings from banks and other market participants , which includes borrowings from the federal home loan banks .
this represented a decrease of approximately $ 11 billion as compared to year-end 2009 .
the average balance of borrowings from banks and other market participants for the quarter ended december 31 , 2010 was approximately $ 43 billion .
other short-term borrowings also include $ 11.7 billion of broker borrowings at december 31 , 2010 , which averaged approximately $ 13 billion for the quarter ended december 31 , 2010 .
see notes 12 and 19 to the consolidated financial statements for further information on citigroup 2019s and its affiliates 2019 outstanding long-term debt and short-term borrowings .
liquidity transfer between entities liquidity is generally transferable within the non-bank , subject to regulatory restrictions ( if any ) and standard legal terms .
similarly , the non-bank can generally transfer excess liquidity into citi 2019s bank subsidiaries , such as citibank , n.a .
in addition , citigroup 2019s bank subsidiaries , including citibank , n.a. , can lend to the citigroup parent and broker-dealer in accordance with section 23a of the federal reserve act .
as of december 31 , 2010 , the amount available for lending under section 23a was approximately $ 26.6 billion , provided the funds are collateralized appropriately.


item 1a .
risk factors in addition to the other information provided in this report , the following risk factors should be considered when evaluating an investment in our securities .
if the circumstances contemplated by the individual risk factors materialize , our business , financial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly .
risks relating to our business fluctuations in the financial markets could result in investment losses .
prolonged and severe disruptions in the overall public debt and equity markets , such as occurred during 2008 , could result in significant realized and unrealized losses in our investment portfolio .
although financial markets have significantly improved since 2008 , they could deteriorate in the future .
there could also be disruption in individual market sectors , such as occurred in the energy sector in recent years .
such declines in the financial markets could result in significant realized and unrealized losses on investments and could have a material adverse impact on our results of operations , equity , business and insurer financial strength and debt ratings .
our results could be adversely affected by catastrophic events .
we are exposed to unpredictable catastrophic events , including weather-related and other natural catastrophes , as well as acts of terrorism .
any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations .
by way of illustration , during the past five calendar years , pre-tax catastrophe losses , net of reinsurance , were as follows: .

calendar year:          | pre-tax catastrophe losses
----------------------- | --------------------------
( dollars in millions ) |
2017                    | $ 1472.6
2016                    | 301.2
2015                    | 53.8
2014                    | 56.3
2013                    | 194.0

our losses from future catastrophic events could exceed our projections .
we use projections of possible losses from future catastrophic events of varying types and magnitudes as a strategic underwriting tool .
we use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the placement of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area .
these loss projections are approximations , reliant on a mix of quantitative and qualitative processes , and actual losses may exceed the projections by a material amount , resulting in a material adverse effect on our financial condition and results of operations.


kendal vroman , 39 mr .
vroman has served as our managing director , commodity products , otc services & information products since february 2010 .
mr .
vroman previously served as managing director and chief corporate development officer from 2008 to 2010 .
mr .
vroman joined us in 2001 and since then has held positions of increasing responsibility , including most recently as managing director , corporate development and managing director , information and technology services .
scot e .
warren , 47 mr .
warren has served as our managing director , equity index products and index services since february 2010 .
mr .
warren previously served as our managing director , equity products since joining us in 2007 .
prior to that , mr .
warren worked for goldman sachs as its president , manager trading and business analysis team .
prior to goldman sachs , mr .
warren managed equity and option execution and clearing businesses for abn amro in chicago and was a senior consultant for arthur andersen & co .
for financial services firms .
financial information about geographic areas due to the nature of its business , cme group does not track revenues based upon geographic location .
we do , however , track trading volume generated outside of traditional u.s .
trading hours and through our international telecommunication hubs .
our customers can directly access our exchanges throughout the world .
the following table shows the percentage of our total trading volume on our globex electronic trading platform generated during non-u.s .
hours and through our international hubs. .

                                       | 2010         | 2009       | 2008
-------------------------------------- | ------------ | ---------- | ------------
trading during non-u.s . hours         | 13% ( 13 % ) | 9% ( 9 % ) | 11% ( 11 % )
trading through telecommunication hubs | 8            | 7          | 8

available information our web site is www.cmegroup.com .
information made available on our web site does not constitute part of this document .
we make available on our web site our annual reports on form 10-k , quarterly reports on form 10-q , current reports on form 8-k and amendments to those reports as soon as reasonably practicable after we electronically file or furnish such materials to the sec .
our corporate governance materials , including our corporate governance principles , director conflict of interest policy , board of directors code of ethics , categorical independence standards , employee code of conduct and the charters for all the standing committees of our board , may also be found on our web site .
copies of these materials are also available to shareholders free of charge upon written request to shareholder relations and member services , attention ms .
beth hausoul , cme group inc. , 20 south wacker drive , chicago , illinois 60606.


alcoa and its subsidiaries file income tax returns in the u.s .
federal jurisdiction and various states and foreign jurisdictions .
with a few minor exceptions , alcoa is no longer subject to income tax examinations by tax authorities for years prior to 2006 .
all u.s .
tax years prior to 2015 have been audited by the internal revenue service .
various state and foreign jurisdiction tax authorities are in the process of examining alcoa 2019s income tax returns for various tax years through 2014 .
a reconciliation of the beginning and ending amount of unrecognized tax benefits ( excluding interest and penalties ) was as follows: .

december 31,                                    | 2015     | 2014       | 2013
----------------------------------------------- | -------- | ---------- | --------
balance at beginning of year                    | $ 35     | $ 63       | $ 66
additions for tax positions of the current year | 2        | 2          | 2
additions for tax positions of prior years      | 15       | 5          | 11
reductions for tax positions of prior years     | -2 ( 2 ) | -4 ( 4 )   | -2 ( 2 )
settlements with tax authorities                | -2 ( 2 ) | -29 ( 29 ) | -8 ( 8 )
expiration of the statute of limitations        | -1 ( 1 ) | -          | -2 ( 2 )
foreign currency translation                    | -4 ( 4 ) | -2 ( 2 )   | -4 ( 4 )
balance at end of year                          | $ 43     | $ 35       | $ 63

for all periods presented , a portion of the balance at end of year pertains to state tax liabilities , which are presented before any offset for federal tax benefits .
the effect of unrecognized tax benefits , if recorded , that would impact the annual effective tax rate for 2015 , 2014 , and 2013 would be approximately 12% ( 12 % ) , 4% ( 4 % ) , and ( 1 ) % (  % ) , respectively , of pretax book income ( loss ) .
alcoa does not anticipate that changes in its unrecognized tax benefits will have a material impact on the statement of consolidated operations during 2016 ( see other matters in note n for a matter for which no reserve has been recognized ) .
it is alcoa 2019s policy to recognize interest and penalties related to income taxes as a component of the provision for income taxes on the accompanying statement of consolidated operations .
in 2015 , 2014 , and 2013 , alcoa recognized $ 8 , $ 1 , and $ 2 , respectively , in interest and penalties .
due to the expiration of the statute of limitations , settlements with tax authorities , and refunded overpayments , alcoa also recognized interest income of $ 2 , $ 5 , and $ 12 in 2015 , 2014 , and 2013 , respectively .
as of december 31 , 2015 and 2014 , the amount accrued for the payment of interest and penalties was $ 9 .
u .
receivables sale of receivables programs alcoa has an arrangement with three financial institutions to sell certain customer receivables without recourse on a revolving basis .
the sale of such receivables is completed through the use of a bankruptcy remote special purpose entity , which is a consolidated subsidiary of alcoa .
this arrangement provides for minimum funding of $ 200 up to a maximum of $ 500 for receivables sold .
on march 30 , 2012 , alcoa initially sold $ 304 of customer receivables in exchange for $ 50 in cash and $ 254 of deferred purchase price under this arrangement .
alcoa has received additional net cash funding of $ 200 for receivables sold ( $ 1258 in draws and $ 1058 in repayments ) since the program 2019s inception ( no draws or repayments occurred in 2015 ) , including $ 40 ( $ 710 in draws and $ 670 in repayments ) in 2014 .
as of december 31 , 2015 and 2014 , the deferred purchase price receivable was $ 249 and $ 356 , respectively , which was included in other receivables on the accompanying consolidated balance sheet .
the deferred purchase price receivable is reduced as collections of the underlying receivables occur ; however , as this is a revolving program , the sale of new receivables will result in an increase in the deferred purchase price receivable .
the net change in the deferred purchase price receivable was reflected in the decrease ( increase ) in receivables line item on the accompanying statement of consolidated cash flows .
this activity is reflected as an operating cash flow because the related customer receivables are the result of an operating activity with an insignificant , short-term interest rate risk.


the following table sets forth the components of foreign currency translation adjustments for fiscal 2012 , 2011 and 2010 ( in thousands ) : .

                                                                                | 2012           | 2011           | 2010
--------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
beginning balance                                                                       | $ 10580        | $ 7632         | $ 10640
foreign currency translation adjustments                                                | -2225 ( 2225 ) | 5156           | -4144 ( 4144 )
income tax effect relating to translation adjustments forundistributed foreign earnings | 1314           | -2208 ( 2208 ) | 1136
ending balance                                                                          | $ 9669         | $ 10580        | $ 7632

stock repurchase program to facilitate our stock repurchase program , designed to return value to our stockholders and minimize dilution from stock issuances , we repurchase shares in the open market and also enter into structured repurchase agreements with third-parties .
authorization to repurchase shares to cover on-going dilution was not subject to expiration .
however , this repurchase program was limited to covering net dilution from stock issuances and was subject to business conditions and cash flow requirements as determined by our board of directors from time to time .
during the third quarter of fiscal 2010 , our board of directors approved an amendment to our stock repurchase program authorized in april 2007 from a non-expiring share-based authority to a time-constrained dollar-based authority .
as part of this amendment , the board of directors granted authority to repurchase up to $ 1.6 billion in common stock through the end of fiscal 2012 .
during the second quarter of fiscal 2012 , we exhausted our $ 1.6 billion authority granted by our board of directors in fiscal in april 2012 , the board of directors approved a new stock repurchase program granting authority to repurchase up to $ 2.0 billion in common stock through the end of fiscal 2015 .
the new stock repurchase program approved by our board of directors is similar to our previous $ 1.6 billion stock repurchase program .
during fiscal 2012 , 2011 and 2010 , we entered into several structured repurchase agreements with large financial institutions , whereupon we provided the financial institutions with prepayments totaling $ 405.0 million , $ 695.0 million and $ 850 million , respectively .
of the $ 405.0 million of prepayments during fiscal 2012 , $ 100.0 million was under the new $ 2.0 billion stock repurchase program and the remaining $ 305.0 million was under our previous $ 1.6 billion authority .
of the $ 850.0 million of prepayments during fiscal 2010 , $ 250.0 million was under the stock repurchase program prior to the program amendment in the third quarter of fiscal 2010 and the remaining $ 600.0 million was under the amended $ 1.6 billion time-constrained dollar-based authority .
we enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the volume weighted average price ( 201cvwap 201d ) of our common stock over a specified period of time .
we only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions .
there were no explicit commissions or fees on these structured repurchases .
under the terms of the agreements , there is no requirement for the financial institutions to return any portion of the prepayment to us .
the financial institutions agree to deliver shares to us at monthly intervals during the contract term .
the parameters used to calculate the number of shares deliverable are : the total notional amount of the contract , the number of trading days in the contract , the number of trading days in the interval and the average vwap of our stock during the interval less the agreed upon discount .
during fiscal 2012 , we repurchased approximately 11.5 million shares at an average price of $ 32.29 through structured repurchase agreements entered into during fiscal 2012 .
during fiscal 2011 , we repurchased approximately 21.8 million shares at an average price of $ 31.81 through structured repurchase agreements entered into during fiscal 2011 .
during fiscal 2010 , we repurchased approximately 31.2 million shares at an average price per share of $ 29.19 through structured repurchase agreements entered into during fiscal 2009 and fiscal 2010 .
for fiscal 2012 , 2011 and 2010 , the prepayments were classified as treasury stock on our consolidated balance sheets at the payment date , though only shares physically delivered to us by november 30 , 2012 , december 2 , 2011 and december 3 , 2010 were excluded from the computation of earnings per share .
as of november 30 , 2012 , $ 33.0 million of prepayments remained under these agreements .
as of december 2 , 2011 and december 3 , 2010 , no prepayments remained under these agreements .
table of contents adobe systems incorporated notes to consolidated financial statements ( continued )


adobe systems incorporated notes to consolidated financial statements ( in thousands , except share and per share data ) ( continued ) note 7 .
restructuring and other charges ( continued ) previously announced restructuring programs the following table depicts the activity for previously announced restructuring programs through december 3 , 1999 : accrued accrued balance at balance at november 27 total cash december 3 1998 charges payments adjustments 1999 .

                                           | accrued balance at november 27 1998 | total charges | cash payments    | adjustments      | accrued balance at december 3 1999
------------------------------------------ | ----------------------------------- | ------------- | ---------------- | ---------------- | ----------------------------------
accrual related to previous restructurings | $ 8867                              | $ 2014        | $ -6221 ( 6221 ) | $ -1874 ( 1874 ) | $ 772

as of december 3 , 1999 , approximately $ 0.8 million in accrued restructuring costs remain related to the company 2019s fiscal 1998 restructuring program .
this balance is comprised of $ 0.3 million in severance and related charges , $ 0.1 million in lease termination costs , and $ 0.4 million in canceled contracts .
the majority of the accrual is expected to be paid by the first quarter of fiscal 2000 .
cash payments for the twelve months ended december 3 , 1999 related to the fiscal 1998 restructuring were $ 0.7 million , $ 3.6 million , and $ 0.4 million for severance and related charges , lease termination costs , and canceled contracts costs , respectively .
in addition , adjustments related to the fiscal 1998 restructuring were made during the year , which consisted of $ 0.4 million related to estimated lease termination costs and $ 0.3 mil- lion related to other charges .
included in the accrual balance as of november 27 , 1998 were lease termination costs related to previously announced restructuring programs in fiscal 1994 and 1995 .
cash payments for the twelve months ended december 3 , 1999 related to both restructuring programs were $ 1.5 million .
during the third and fourth quarters of fiscal 1999 , the company recorded adjustments to the accrual balance of approximately $ 1.2 million related to these programs .
an adjustment of $ 0.6 million was made in the third quarter of fiscal 1999 due to the company 2019s success in terminating a lease agreement earlier than the contract term specified .
in addition , $ 0.6 million was reduced from the restructuring accrual relating to expired lease termination costs for two facilities resulting from the merger with frame in fiscal 1995 .
as of december 3 , 1999 no accrual balances remain related to the aldus and frame mergers .
other charges during the third and fourth quarters of fiscal 1999 , the company recorded other charges of $ 8.4 million that were unusual in nature .
these charges included $ 2.0 million associated with the cancellation of a contract and $ 2.2 million for accelerated depreciation related to the adjustment of the useful life of certain assets as a result of decisions made by management as part of the restructuring program .
additionally , the company incurred a nonrecurring compensation charge totaling $ 2.6 million for a terminated employee and incurred consulting fees of $ 1.6 million to assist in the restructuring of the company 2019s operations.


assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease .
amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease .
12 .
accounts payable and other current liabilities dec .
31 , dec .
31 , millions 2010 2009 .

millions                                            | dec . 31 2010 | dec . 31 2009
--------------------------------------------------- | ------------- | -------------
accounts payable                                    | $ 677         | $ 612
dividends and interest                              | 383           | 347
accrued wages and vacation                          | 357           | 339
income and other taxes                              | 337           | 224
accrued casualty costs                              | 325           | 379
equipment rents payable                             | 86            | 89
other                                               | 548           | 480
total accounts payable and other currentliabilities | $ 2713        | $ 2470

13 .
financial instruments strategy and risk 2013 we may use derivative financial instruments in limited instances for other than trading purposes to assist in managing our overall exposure to fluctuations in interest rates and fuel prices .
we are not a party to leveraged derivatives and , by policy , do not use derivative financial instruments for speculative purposes .
derivative financial instruments qualifying for hedge accounting must maintain a specified level of effectiveness between the hedging instrument and the item being hedged , both at inception and throughout the hedged period .
we formally document the nature and relationships between the hedging instruments and hedged items at inception , as well as our risk- management objectives , strategies for undertaking the various hedge transactions , and method of assessing hedge effectiveness .
changes in the fair market value of derivative financial instruments that do not qualify for hedge accounting are charged to earnings .
we may use swaps , collars , futures , and/or forward contracts to mitigate the risk of adverse movements in interest rates and fuel prices ; however , the use of these derivative financial instruments may limit future benefits from favorable interest rate and fuel price movements .
market and credit risk 2013 we address market risk related to derivative financial instruments by selecting instruments with value fluctuations that highly correlate with the underlying hedged item .
we manage credit risk related to derivative financial instruments , which is minimal , by requiring high credit standards for counterparties and periodic settlements .
at december 31 , 2010 and 2009 , we were not required to provide collateral , nor had we received collateral , relating to our hedging activities .
determination of fair value 2013 we determine the fair values of our derivative financial instrument positions based upon current fair values as quoted by recognized dealers or the present value of expected future cash flows .
interest rate fair value hedges 2013 we manage our overall exposure to fluctuations in interest rates by adjusting the proportion of fixed and floating rate debt instruments within our debt portfolio over a given period .
we generally manage the mix of fixed and floating rate debt through the issuance of targeted amounts of each as debt matures or as we require incremental borrowings .
we employ derivatives , primarily swaps , as one of the tools to obtain the targeted mix .
in addition , we also obtain flexibility in managing interest costs and the interest rate mix within our debt portfolio by evaluating the issuance of and managing outstanding callable fixed-rate debt securities .
swaps allow us to convert debt from fixed rates to variable rates and thereby hedge the risk of changes in the debt 2019s fair value attributable to the changes in interest rates .
we account for swaps as fair value hedges using the short-cut method ; therefore , we do not record any ineffectiveness within our consolidated financial statements.


the total intrinsic value of options exercised ( i.e .
the difference between the market price at exercise and the price paid by the employee to exercise the options ) during fiscal 2011 , 2010 and 2009 was $ 96.5 million , $ 29.6 million and $ 4.7 million , respectively .
the total amount of proceeds received by the company from exercise of these options during fiscal 2011 , 2010 and 2009 was $ 217.4 million , $ 240.4 million and $ 15.1 million , respectively .
proceeds from stock option exercises pursuant to employee stock plans in the company 2019s statement of cash flows of $ 217.2 million , $ 216.1 million and $ 12.4 million for fiscal 2011 , 2010 and 2009 , respectively , are net of the value of shares surrendered by employees in certain limited circumstances to satisfy the exercise price of options , and to satisfy employee tax obligations upon vesting of restricted stock or restricted stock units and in connection with the exercise of stock options granted to the company 2019s employees under the company 2019s equity compensation plans .
the withholding amount is based on the company 2019s minimum statutory withholding requirement .
a summary of the company 2019s restricted stock unit award activity as of october 29 , 2011 and changes during the year then ended is presented below : restricted outstanding weighted- average grant- date fair value per share .

                                                      | restricted stock units outstanding | weighted- average grant- date fair value per share
----------------------------------------------------- | ---------------------------------- | --------------------------------------------------
restricted stock units outstanding at october 30 2010 | 1265                               | $ 28.21
units granted                                         | 898                                | $ 34.93
restrictions lapsed                                   | -33 ( 33 )                         | $ 24.28
units forfeited                                       | -42 ( 42 )                         | $ 31.39
restricted stock units outstanding at october 29 2011 | 2088                               | $ 31.10

as of october 29 , 2011 , there was $ 88.6 million of total unrecognized compensation cost related to unvested share-based awards comprised of stock options and restricted stock units .
that cost is expected to be recognized over a weighted-average period of 1.3 years .
the total grant-date fair value of shares that vested during fiscal 2011 , 2010 and 2009 was approximately $ 49.6 million , $ 67.7 million and $ 74.4 million , respectively .
common stock repurchase program the company 2019s common stock repurchase program has been in place since august 2004 .
in the aggregate , the board of directors has authorized the company to repurchase $ 5 billion of the company 2019s common stock under the program .
under the program , the company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions .
unless terminated earlier by resolution of the company 2019s board of directors , the repurchase program will expire when the company has repurchased all shares authorized under the program .
as of october 29 , 2011 , the company had repurchased a total of approximately 125.0 million shares of its common stock for approximately $ 4278.5 million under this program .
an additional $ 721.5 million remains available for repurchase of shares under the current authorized program .
the repurchased shares are held as authorized but unissued shares of common stock .
any future common stock repurchases will be dependent upon several factors , including the amount of cash available to the company in the united states and the company 2019s financial performance , outlook and liquidity .
the company also from time to time repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units , or in certain limited circumstances to satisfy the exercise price of options granted to the company 2019s employees under the company 2019s equity compensation plans .
analog devices , inc .
notes to consolidated financial statements 2014 ( continued )


other expense , net : the company's other expense consists of the following: .

( in thousands )             | year ended december 31 , 2013 | year ended december 31 , 2012
---------------------------- | ----------------------------- | -----------------------------
foreign currency losses net  | $ -1115 ( 1115 )              | $ -1401 ( 1401 )
other income ( expense ) net | 69                            | -4 ( 4 )
total other expense net      | $ -1046 ( 1046 )              | $ -1405 ( 1405 )

income tax provision : the company recorded income tax expense of $ 77.2 million and had income before income taxes of $ 322.5 million for the year ended december 31 , 2013 , representing an effective tax rate of 23.9% ( 23.9 % ) .
during the year ended december 31 , 2012 , the company recorded income tax expense of $ 90.1 million and had income before income taxes of $ 293.5 million , representing an effective tax rate of 30.7% ( 30.7 % ) .
in december 2013 , the company received notice from the irs that the joint committee on taxation took no exception to the company's tax returns that were filed for 2009 and 2010 .
an $ 11.0 million tax benefit was recognized in the company's 2013 financial results as the company had effectively settled uncertainty regarding the realization of refund claims filed in connection with the 2009 and 2010 returns .
in the u.s. , which is the largest jurisdiction where the company receives such a tax credit , the availability of the research and development credit expired at the end of the 2011 tax year .
in january 2013 , the u.s .
congress passed legislation that reinstated the research and development credit retroactive to 2012 .
the income tax provision for the year ended december 31 , 2013 includes approximately $ 2.3 million related to the reinstated research and development credit for 2012 activity .
the decrease in the effective tax rate from the prior year is primarily due to the release of an uncertain tax position mentioned above , the reinstatement of the u.s .
research and development credit mentioned above , and cash repatriation activities .
when compared to the federal and state combined statutory rate , the effective tax rates for the years ended december 31 , 2013 and 2012 were favorably impacted by lower statutory tax rates in many of the company 2019s foreign jurisdictions , the domestic manufacturing deduction and tax benefits associated with the merger of the company 2019s japan subsidiaries in 2010 .
net income : the company 2019s net income for the year ended december 31 , 2013 was $ 245.3 million as compared to net income of $ 203.5 million for the year ended december 31 , 2012 .
diluted earnings per share was $ 2.58 for the year ended december 31 , 2013 and $ 2.14 for the year ended december 31 , 2012 .
the weighted average shares used in computing diluted earnings per share were 95.1 million and 95.0 million for the years ended december 31 , 2013 and 2012 , respectively .
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during the years ended december 31 , 2013 , 2012 , and 2011 , we recognized approximately $ 6.5 million , $ 5.1 million and $ 4.7 million of compensation expense , respectively , for these options .
as of december 31 , 2013 , there was approximately $ 20.3 million of total unrecognized compensation cost related to unvested stock options , which is expected to be recognized over a weighted average period of three years .
stock-based compensation effective january 1 , 1999 , we implemented a deferred compensation plan , or the deferred plan , covering certain of our employees , including our executives .
the shares issued under the deferred plan were granted to certain employees , including our executives and vesting will occur annually upon the completion of a service period or our meeting established financial performance criteria .
annual vesting occurs at rates ranging from 15% ( 15 % ) to 35% ( 35 % ) once performance criteria are reached .
a summary of our restricted stock as of december 31 , 2013 , 2012 and 2011 and charges during the years then ended are presented below: .

                                                                        | 2013           | 2012               | 2011
----------------------------------------------------------------------- | -------------- | ------------------ | --------------
balance at beginning of year                                            | 2804901        | 2912456            | 2728290
granted                                                                 | 192563         | 92729              | 185333
cancelled                                                               | -3267 ( 3267 ) | -200284 ( 200284 ) | -1167 ( 1167 )
balance at end of year                                                  | 2994197        | 2804901            | 2912456
vested during the year                                                  | 21074          | 408800             | 66299
compensation expense recorded                                           | $ 6713155      | $ 6930381          | $ 17365401
weighted average fair value of restricted stock granted during the year | $ 17386949     | $ 7023942          | $ 21768084

weighted average fair value of restricted stock granted during the year $ 17386949 $ 7023942 $ 21768084 the fair value of restricted stock that vested during the years ended december 31 , 2013 , 2012 and 2011 was $ 1.6 million , $ 22.4 million and $ 4.3 million , respectively .
as of december 31 , 2013 , there was $ 17.8 million of total unrecognized compensation cost related to unvested restricted stock , which is expected to be recognized over a weighted average period of approximately 2.7 years .
for the years ended december 31 , 2013 , 2012 and 2011 , approximately $ 4.5 million , $ 4.1 million and $ 3.4 million , respectively , was capitalized to assets associated with compensation expense related to our long-term compensation plans , restricted stock and stock options .
we granted ltip units , which include bonus , time-based and performance based awards , with a fair value of $ 27.1 million , zero and $ 8.5 million as of 2013 , 2012 and 2011 , respectively .
the grant date fair value of the ltip unit awards was calculated in accordance with asc 718 .
a third party consultant determined the fair value of the ltip units to have a discount from sl green's common stock price .
the discount was calculated by considering the inherent uncertainty that the ltip units will reach parity with other common partnership units and the illiquidity due to transfer restrictions .
as of december 31 , 2013 , there was $ 5.0 million of total unrecognized compensation expense related to the time-based and performance based awards , which is expected to be recognized over a weighted average period of approximately 1.5 years .
during the years ended december 31 , 2013 , 2012 and 2011 , we recorded compensation expense related to bonus , time-based and performance based awards of approximately $ 27.3 million , $ 12.6 million and $ 8.5 million , respectively .
2010 notional unit long-term compensation plan in december 2009 , the compensation committee of the company's board of directors approved the general terms of the sl green realty corp .
2010 notional unit long-term compensation program , or the 2010 long-term compensation plan .
the 2010 long-term compensation plan is a long-term incentive compensation plan pursuant to which award recipients could earn , in the aggregate , from approximately $ 15.0 million up to approximately $ 75.0 million of ltip units in the operating partnership based on our stock price appreciation over three years beginning on december 1 , 2009 ; provided that , if maximum performance had been achieved , approximately $ 25.0 million of awards could be earned at any time after the beginning of the second year and an additional approximately $ 25.0 million of awards could be earned at any time after the beginning of the third year .
in order to achieve maximum performance under the 2010 long-term compensation plan , our aggregate stock price appreciation during the performance period had to equal or exceed 50% ( 50 % ) .
the compensation committee determined that maximum performance had been achieved at or shortly after the beginning of each of the second and third years of the performance period and for the full performance period and , accordingly , 366815 ltip units , 385583 ltip units and 327416 ltip units were earned under the 2010 long-term compensation plan in december 2010 , 2011 and 2012 , respectively .
substantially in accordance with the original terms of the program , 50% ( 50 % ) of these ltip units vested on december 17 , 2012 ( accelerated from the original january 1 , 2013 vesting date ) , 25% ( 25 % ) of these ltip units vested on december 11 , 2013 ( accelerated from the original january 1 , 2014 vesting date ) and the remainder is scheduled to vest on january 1 , 2015 based on


adobe systems incorporated notes to consolidated financial statements ( continued ) accounting for uncertainty in income taxes during fiscal 2013 and 2012 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows ( in thousands ) : .

                                                                             | 2013             | 2012
---------------------------------------------------------------------------- | ---------------- | ----------------
beginning balance                                                            | $ 160468         | $ 163607
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 20244            | 1038
gross increases in unrecognized tax benefits 2013 current year tax positions | 16777            | 23771
settlements with taxing authorities                                          | -55851 ( 55851 ) | -1754 ( 1754 )
lapse of statute of limitations                                              | -4066 ( 4066 )   | -25387 ( 25387 )
foreign exchange gains and losses                                            | -1474 ( 1474 )   | -807 ( 807 )
ending balance                                                               | $ 136098         | $ 160468

as of november 29 , 2013 , the combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current income taxes payable was approximately $ 11.4 million .
we file income tax returns in the u.s .
on a federal basis and in many u.s .
state and foreign jurisdictions .
we are subject to the continual examination of our income tax returns by the irs and other domestic and foreign tax authorities .
our major tax jurisdictions are the u.s. , ireland and california .
for california , ireland and the u.s. , the earliest fiscal years open for examination are 2005 , 2006 and 2010 , respectively .
we regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from the current examinations .
we believe such estimates to be reasonable ; however , there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position .
in july 2013 , a u.s .
income tax examination covering our fiscal years 2008 and 2009 was completed .
our accrued tax and interest related to these years was $ 48.4 million and was previously reported in long-term income taxes payable .
we settled the tax obligation resulting from this examination with cash and income tax assets totaling $ 41.2 million , and the resulting $ 7.2 million income tax benefit was recorded in the third quarter of fiscal 2013 .
the timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process .
these events could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities .
we believe that within the next 12 months , it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire , or both .
given the uncertainties described above , we can only determine a range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 5 million .
note 10 .
restructuring fiscal 2011 restructuring plan in the fourth quarter of fiscal 2011 , we initiated a restructuring plan consisting of reductions in workforce and the consolidation of facilities in order to better align our resources around our digital media and digital marketing strategies .
during fiscal 2013 , we continued to implement restructuring activities under this plan .
total costs incurred to date and expected to be incurred for closing redundant facilities are $ 12.2 million as all facilities under this plan have been exited as of november 29 , 2013 .
other restructuring plans other restructuring plans include other adobe plans and other plans associated with certain of our acquisitions that are substantially complete .
we continue to make cash outlays to settle obligations under these plans , however the current impact to our consolidated financial statements is not significant .
our other restructuring plans primarily consist of the 2009 restructuring plan , which was implemented in the fourth quarter of fiscal 2009 , in order to appropriately align our costs in connection with our fiscal 2010 operating plan.