required to maintain a fhlb stock investment currently equal to the lesser of : a percentage of 0.2% ( 0.2 % ) of total bank assets ; or a dollar cap amount of $ 25 million .
additionally , the bank must maintain an activity based stock investment which is currently equal to 4.5% ( 4.5 % ) of the bank 2019s outstanding advances at the time of borrowing .
on a quarterly basis the fhlb atlanta evaluates excess activity based stock holdings for its members and makes a determination regarding quarterly redemption of any excess activity based stock positions .
the company had an investment in fhlb stock of $ 140.2 million and $ 164.4 million at december 31 , 2011 and 2010 , respectively .
the company must also maintain qualified collateral as a percent of its advances , which varies based on the collateral type , and is further adjusted by the outcome of the most recent annual collateral audit and by fhlb 2019s internal ranking of the bank 2019s creditworthiness .
these advances are secured by a pool of mortgage loans and mortgage-backed securities .
at december 31 , 2011 and 2010 , the company pledged loans with a lendable value of $ 5.0 billion and $ 5.6 billion , respectively , of the one- to four-family and home equity loans as collateral in support of both its advances and unused borrowing lines .
during the year ended december 31 , 2009 , the company paid down in advance of maturity $ 1.6 billion of its fhlb advances .
the company recorded a loss on the early extinguishment of fhlb advances of $ 50.6 million for the year ended december 31 , 2009 .
this loss is recorded in the gains ( losses ) on early extinguishment of debt line item in the consolidated statement of income ( loss ) .
the company did not have any similar transactions for the years ended december 31 , 2011 and 2010 .
other borrowings 2014etbh raised capital in the past through the formation of trusts , which sell trust preferred securities in the capital markets .
the capital securities must be redeemed in whole at the due date , which is generally 30 years after issuance .
each trust issued floating rate cumulative preferred securities ( 201ctrust preferred securities 201d ) , at par with a liquidation amount of $ 1000 per capital security .
the trusts used the proceeds from the sale of issuances to purchase floating rate junior subordinated debentures ( 201csubordinated debentures 201d ) issued by etbh , which guarantees the trust obligations and contributed proceeds from the sale of its subordinated debentures to e*trade bank in the form of a capital contribution .
the most recent issuance of trust preferred securities occurred in 2007 .
the face values of outstanding trusts at december 31 , 2011 are shown below ( dollars in thousands ) : trusts face value maturity date annual interest rate .

trusts                               | face value | maturity date | annual interest rate
------------------------------------ | ---------- | ------------- | ------------------------------------------------
etbh capital trust ii                | $ 5000     | 2031          | 10.25% ( 10.25 % )
etbh capital trust i                 | 20000      | 2031          | 3.75% ( 3.75 % ) above 6-month libor
etbh capital trust v vi viii         | 51000      | 2032          | 3.25%-3.65% ( 3.25%-3.65 % ) above 3-month libor
etbh capital trust vii ix 2014xii    | 65000      | 2033          | 3.00%-3.30% ( 3.00%-3.30 % ) above 3-month libor
etbh capital trust xiii 2014xviii xx | 77000      | 2034          | 2.45%-2.90% ( 2.45%-2.90 % ) above 3-month libor
etbh capital trust xix xxi xxii      | 60000      | 2035          | 2.20%-2.40% ( 2.20%-2.40 % ) above 3-month libor
etbh capital trust xxiii 2014xxiv    | 45000      | 2036          | 2.10% ( 2.10 % ) above 3-month libor
etbh capital trust xxv 2014xxx       | 110000     | 2037          | 1.90%-2.00% ( 1.90%-2.00 % ) above 3-month libor
total                                | $ 433000   |               |

as of december 31 , 2011 and 2010 , other borrowings also included $ 2.3 million and $ 19.3 million , respectively , of collateral pledged to the bank by its derivatives counterparties to reduce credit exposure to changes in market value .
as of december 31 , 2010 , other borrowings also included $ 0.5 million of overnight and other short-term borrowings in connection with the federal reserve bank 2019s treasury , tax and loan programs .
the company pledged $ 0.8 million of securities to secure these borrowings from the federal reserve bank as of december 31 , 2010.


zero .
to the extent earned , these performance units convert into unrestricted shares after performance results for the three-year performance period are certified by the compensation committee .
we recognize share-based compensation expense based on the grant-date fair value of the performance-based restricted stock units , as determined by use of a monte carlo model , on a straight-line basis over the performance period .
leveraged performance units during the year ended may 31 , 2015 , certain executives were granted performance units that we refer to as 201cleveraged performance units , 201d or 201clpus . 201d lpus contain a market condition based on our relative stock price growth over a three-year performance period .
the lpus contain a minimum threshold performance which , if not met , would result in no payout .
the lpus also contain a maximum award opportunity set as a fixed dollar and fixed number of shares .
after the three-year performance period , which concluded in october 2017 , one-third of the earned units converted to unrestricted common stock .
the remaining two-thirds converted to restricted stock that will vest in equal installments on each of the first two anniversaries of the conversion date .
we recognize share-based compensation expense based on the grant date fair value of the lpus , as determined by use of a monte carlo model , on a straight-line basis over the requisite service period for each separately vesting portion of the lpu award .
the following table summarizes the changes in unvested restricted stock and performance awards for the years ended december 31 , 2018 and 2017 , the 2016 fiscal transition period and the year ended may 31 , 2016 : shares weighted-average grant-date fair value ( in thousands ) .

                             | shares ( in thousands ) | weighted-averagegrant-datefair value
---------------------------- | ----------------------- | ------------------------------------
unvested at may 31 2015      | 1848                    | $ 28.97
granted                      | 461                     | 57.04
vested                       | -633 ( 633 )            | 27.55
forfeited                    | -70 ( 70 )              | 34.69
unvested at may 31 2016      | 1606                    | 37.25
granted                      | 348                     | 74.26
vested                       | -639 ( 639 )            | 31.38
forfeited                    | -52 ( 52 )              | 45.27
unvested at december 31 2016 | 1263                    | 49.55
granted                      | 899                     | 79.79
vested                       | -858 ( 858 )            | 39.26
forfeited                    | -78 ( 78 )              | 59.56
unvested at december 31 2017 | 1226                    | 78.29
granted                      | 650                     | 109.85
vested                       | -722 ( 722 )            | 60.08
forfeited                    | -70 ( 70 )              | 91.47
unvested at december 31 2018 | 1084                    | $ 108.51

the total fair value of restricted stock and performance awards vested was $ 43.4 million and $ 33.7 million for the years ended december 31 , 2018 and 2017 , respectively , $ 20.0 million for the 2016 fiscal transition period and $ 17.4 million for the year ended may 31 , 2016 .
for restricted stock and performance awards , we recognized compensation expense of $ 53.2 million and $ 35.2 million for the years ended december 31 , 2018 and 2017 , respectively , $ 17.2 million for the 2016 fiscal transition period and $ 28.8 million for the year ended may 31 , 2016 .
as of december 31 , 2018 , there was $ 62.7 million of unrecognized compensation expense related to unvested restricted stock and performance awards that we expect to recognize over a weighted-average period of 2.0 years .
our restricted stock and performance award plans provide for accelerated vesting under certain conditions .
94 2013 global payments inc .
| 2018 form 10-k annual report


use of estimates the preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period .
actual results could differ from those estimates .
( 3 ) significant acquisitions and dispositions acquisitions we acquired total income producing real estate related assets of $ 219.9 million , $ 948.4 million and $ 295.6 million in 2007 , 2006 and 2005 , respectively .
in december 2007 , in order to further establish our property positions around strategic port locations , we purchased a portfolio of five industrial buildings , in seattle , virginia and houston , as well as approximately 161 acres of undeveloped land and a 12-acre container storage facility in houston .
the total price was $ 89.7 million and was financed in part through assumption of secured debt that had a fair value of $ 34.3 million .
of the total purchase price , $ 66.1 million was allocated to in-service real estate assets , $ 20.0 million was allocated to undeveloped land and the container storage facility , $ 3.3 million was allocated to lease related intangible assets , and the remaining amount was allocated to acquired working capital related assets and liabilities .
this allocation of purchase price based on the fair value of assets acquired is preliminary .
the results of operations for the acquired properties since the date of acquisition have been included in continuing rental operations in our consolidated financial statements .
in february 2007 , we completed the acquisition of bremner healthcare real estate ( 201cbremner 201d ) , a national health care development and management firm .
the primary reason for the acquisition was to expand our development capabilities within the health care real estate market .
the initial consideration paid to the sellers totaled $ 47.1 million , and the sellers may be eligible for further contingent payments over the next three years .
approximately $ 39.0 million of the total purchase price was allocated to goodwill , which is attributable to the value of bremner 2019s overall development capabilities and its in-place workforce .
the results of operations for bremner since the date of acquisition have been included in continuing operations in our consolidated financial statements .
in february 2006 , we acquired the majority of a washington , d.c .
metropolitan area portfolio of suburban office and light industrial properties ( the 201cmark winkler portfolio 201d ) .
the assets acquired for a purchase price of approximately $ 867.6 million are comprised of 32 in-service properties with approximately 2.9 million square feet for rental , 166 acres of undeveloped land , as well as certain related assets of the mark winkler company , a real estate management company .
the acquisition was financed primarily through assumed mortgage loans and new borrowings .
the assets acquired and liabilities assumed were recorded at their estimated fair value at the date of acquisition , as summarized below ( in thousands ) : .

operating rental properties               | $ 602011
----------------------------------------- | ------------------
land held for development                 | 154300
total real estate investments             | 756311
other assets                              | 10478
lease related intangible assets           | 86047
goodwill                                  | 14722
total assets acquired                     | 867558
debt assumed                              | -148527 ( 148527 )
other liabilities assumed                 | -5829 ( 5829 )
purchase price net of assumed liabilities | $ 713202

purchase price , net of assumed liabilities $ 713202


hii expects to incur higher costs to complete ships currently under construction in avondale due to anticipated reductions in productivity .
as a result , in the second quarter of 2010 , the company increased the estimates to complete lpd-23 and lpd-25 by approximately $ 210 million .
the company recognized a $ 113 million pre-tax charge to operating income for these contracts in the second quarter of 2010 .
hii is exploring alternative uses of the avondale facility , including alternative opportunities for the workforce .
in connection with and as a result of the decision to wind down shipbuilding operations at the avondale , louisiana facility , the company began incurring and paying related employee severance and incentive compensation liabilities and expenditures , asset retirement obligation liabilities that became reasonably estimable , and amounts owed for not meeting certain requirements under its cooperative endeavor agreement with the state of louisiana .
the company anticipates that it will incur substantial other restructuring and facilities shutdown related costs , including , but not limited to , severance expense , relocation expense , and asset write-downs related to the avondale facilities .
these costs are expected to be allowable expenses under government accounting standards and thus should be recoverable in future years 2019 overhead costs .
these future costs could approximate $ 271 million , based on management 2019s current estimate .
such costs should be recoverable under existing flexibly priced contracts or future negotiated contracts in accordance with federal acquisition regulation ( 201cfar 201d ) provisions relating to the treatment of restructuring and shutdown related costs .
the company is currently in discussions with the u.s .
navy regarding its cost submission to support the recoverability of these costs under the far and applicable contracts , and this submission is subject to review and acceptance by the u.s .
navy .
the defense contract audit agency ( 201cdcaa 201d ) , a dod agency , prepared an initial audit report on the company 2019s cost proposal for restructuring and shutdown related costs of $ 310 million , which stated that the proposal was not adequately supported for the dcaa to reach a conclusion and questioned approximately $ 25 million , or 8% ( 8 % ) , of the costs submitted by the company .
accordingly , the dcaa did not accept the proposal as submitted .
the company has submitted a revised proposal to address the concerns of the dcaa and to reflect a revised estimated total cost of $ 271 million .
should the company 2019s revised proposal be challenged by the u.s .
navy , the company would likely pursue prescribed dispute resolution alternatives to resolve the challenge .
that process , however , would create uncertainty as to the timing and eventual allowability of the costs related to the wind down of the avondale facility .
ultimately , the company anticipates these discussions with the u.s .
navy will result in an agreement that is substantially in accordance with management 2019s cost recovery expectations .
accordingly , hii has treated these costs as allowable costs in determining the earnings performance on its contracts in process .
the actual restructuring expenses related to the wind down may be greater than the company 2019s current estimate , and any inability to recover such costs could result in a material effect on the company 2019s consolidated financial position , results of operations or cash flows .
the company also evaluated the effect that the wind down of the avondale facilities might have on the benefit plans in which hii employees participate .
hii determined that the potential impact of a curtailment in these plans was not material to its consolidated financial position , results of operations or cash flows .
the table below summarizes the company 2019s liability for restructuring and shutdown related costs associated with winding down the avondale facility .
as of december 31 , 2011 and 2010 , these costs are comprised primarily of employee severance and retention and incentive bonuses .
these amounts were capitalized in inventoried costs , and will be recognized as expenses in cost of product sales beginning in 2014 .
( $ in millions ) employee compensation other accruals total .

( $ in millions )           | employee compensation | other accruals | total
--------------------------- | --------------------- | -------------- | ----------
balance at january 1 2010   | $ 0                   | $ 0            | $ 0
accrual established         | 27                    | 39             | 66
payments                    | 0                     | 0              | 0
adjustments                 | 0                     | 0              | 0
balance at december 31 2010 | $ 27                  | $ 39           | $ 66
accrual established         | 0                     | 0              | 0
payments                    | -24 ( 24 )            | -36 ( 36 )     | -60 ( 60 )
adjustments                 | 47                    | -3 ( 3 )       | 44
balance at december 31 2011 | $ 50                  | $ 0            | $ 50


notes to consolidated financial statements 2014 ( continued ) becton , dickinson and company ( b ) these reclassifications were recorded to interest expense and cost of products sold .
additional details regarding the company's cash flow hedges are provided in note 13 .
on august 25 , 2016 , in anticipation of proceeds to be received from the divestiture of the respiratory solutions business in the first quarter of fiscal year 2017 , the company entered into an accelerated share repurchase ( "asr" ) agreement .
subsequent to the end of the company's fiscal year 2016 and as per the terms of the asr agreement , the company received approximately 1.3 million shares of its common stock , which was recorded as a $ 220 million increase to common stock in treasury .
note 4 2014 earnings per share the weighted average common shares used in the computations of basic and diluted earnings per share ( shares in thousands ) for the years ended september 30 were as follows: .

                                                                               | 2016   | 2015   | 2014
------------------------------------------------------------------------------ | ------ | ------ | ------
average common shares outstanding                                              | 212702 | 202537 | 193299
dilutive share equivalents from share-based plans                              | 4834   | 4972   | 4410
average common and common equivalent shares outstanding 2014 assuming dilution | 217536 | 207509 | 197709

average common and common equivalent shares outstanding 2014 assuming dilution 217536 207509 197709 upon closing the acquisition of carefusion corporation ( 201ccarefusion 201d ) on march 17 , 2015 , the company issued approximately 15.9 million of its common shares as part of the purchase consideration .
additional disclosures regarding this acquisition are provided in note 9 .
options to purchase shares of common stock are excluded from the calculation of diluted earnings per share when their inclusion would have an anti-dilutive effect on the calculation .
for the years ended september 30 , 2016 , 2015 and 2014 there were no options to purchase shares of common stock which were excluded from the diluted earnings per share calculation.


affiliated company .
the loss recorded on the sale was approximately $ 14 million and is recorded as a loss on sale of assets and asset impairment expenses in the accompanying consolidated statements of operations .
in the second quarter of 2002 , the company recorded an impairment charge of approximately $ 40 million , after income taxes , on an equity method investment in a telecommunications company in latin america held by edc .
the impairment charge resulted from sustained poor operating performance coupled with recent funding problems at the invested company .
during 2001 , the company lost operational control of central electricity supply corporation ( 2018 2018cesco 2019 2019 ) , a distribution company located in the state of orissa , india .
cesco is accounted for as a cost method investment .
in may 2000 , the company completed the acquisition of 100% ( 100 % ) of tractebel power ltd ( 2018 2018tpl 2019 2019 ) for approximately $ 67 million and assumed liabilities of approximately $ 200 million .
tpl owned 46% ( 46 % ) of nigen .
the company also acquired an additional 6% ( 6 % ) interest in nigen from minority stockholders during the year ended december 31 , 2000 through the issuance of approximately 99000 common shares of aes stock valued at approximately $ 4.9 million .
with the completion of these transactions , the company owns approximately 98% ( 98 % ) of nigen 2019s common stock and began consolidating its financial results beginning may 12 , 2000 .
approximately $ 100 million of the purchase price was allocated to excess of costs over net assets acquired and was amortized through january 1 , 2002 at which time the company adopted sfas no .
142 and ceased amortization of goodwill .
in august 2000 , a subsidiary of the company acquired a 49% ( 49 % ) interest in songas limited ( 2018 2018songas 2019 2019 ) for approximately $ 40 million .
the company acquired an additional 16.79% ( 16.79 % ) of songas for approximately $ 12.5 million , and the company began consolidating this entity in 2002 .
songas owns the songo songo gas-to-electricity project in tanzania .
in december 2002 , the company signed a sales purchase agreement to sell songas .
the sale is expected to close in early 2003 .
see note 4 for further discussion of the transaction .
the following table presents summarized comparative financial information ( in millions ) for the company 2019s investments in 50% ( 50 % ) or less owned investments accounted for using the equity method. .

as of and for the years ended december 31, | 2002   | 2001   | 2000
------------------------------------------ | ------ | ------ | ------
revenues                                   | $ 2832 | $ 6147 | $ 6241
operating income                           | 695    | 1717   | 1989
net income                                 | 229    | 650    | 859
current assets                             | 1097   | 3700   | 2423
noncurrent assets                          | 6751   | 14942  | 13080
current liabilities                        | 1418   | 3510   | 3370
noncurrent liabilities                     | 3349   | 8297   | 5927
stockholder's equity                       | 3081   | 6835   | 6206

in 2002 , 2001 and 2000 , the results of operations and the financial position of cemig were negatively impacted by the devaluation of the brazilian real and the impairment charge recorded in 2002 .
the brazilian real devalued 32% ( 32 % ) , 19% ( 19 % ) and 8% ( 8 % ) for the years ended december 31 , 2002 , 2001 and 2000 , respectively .
the company recorded $ 83 million , $ 210 million , and $ 64 million of pre-tax non-cash foreign currency transaction losses on its investments in brazilian equity method affiliates during 2002 , 2001 and 2000 , respectively.


the following table summarized the status of the company 2019s non-vested performance share unit awards and changes for the period indicated : weighted- average grant date performance share unit awards shares fair value .

performance share unit awards | year ended december 31 2015 shares | year ended december 31 2015 weighted- average grant date fair value
----------------------------- | ---------------------------------- | -------------------------------------------------------------------
outstanding at january 1,     | -                                  | $ -
granted                       | 10705                              | 178.84
vested                        | -                                  | -
forfeited                     | -                                  | -
outstanding at december 31,   | 10705                              | 178.84

19 .
segment reporting the u.s .
reinsurance operation writes property and casualty reinsurance and specialty lines of business , including marine , aviation , surety and accident and health ( 201ca&h 201d ) business , on both a treaty and facultative basis , through reinsurance brokers , as well as directly with ceding companies primarily within the u.s .
the international operation writes non-u.s .
property and casualty reinsurance through everest re 2019s branches in canada and singapore and through offices in brazil , miami and new jersey .
the bermuda operation provides reinsurance and insurance to worldwide property and casualty markets through brokers and directly with ceding companies from its bermuda office and reinsurance to the united kingdom and european markets through its uk branch and ireland re .
the insurance operation writes property and casualty insurance directly and through general agents , brokers and surplus lines brokers within the u.s .
and canada .
the mt .
logan re segment represents business written for the segregated accounts of mt .
logan re , which were formed on july 1 , 2013 .
the mt .
logan re business represents a diversified set of catastrophe exposures , diversified by risk/peril and across different geographical regions globally .
these segments , with the exception of mt .
logan re , are managed independently , but conform with corporate guidelines with respect to pricing , risk management , control of aggregate catastrophe exposures , capital , investments and support operations .
management generally monitors and evaluates the financial performance of these operating segments based upon their underwriting results .
the mt .
logan re segment is managed independently and seeks to write a diverse portfolio of catastrophe risks for each segregated account to achieve desired risk and return criteria .
underwriting results include earned premium less losses and loss adjustment expenses ( 201clae 201d ) incurred , commission and brokerage expenses and other underwriting expenses .
we measure our underwriting results using ratios , in particular loss , commission and brokerage and other underwriting expense ratios , which , respectively , divide incurred losses , commissions and brokerage and other underwriting expenses by premiums earned .
mt .
logan re 2019s business is sourced through operating subsidiaries of the company ; however , the activity is only reflected in the mt .
logan re segment .
for other inter-affiliate reinsurance , business is generally reported within the segment in which the business was first produced , consistent with how the business is managed .
except for mt .
logan re , the company does not maintain separate balance sheet data for its operating segments .
accordingly , the company does not review and evaluate the financial results of its operating segments based upon balance sheet data.


schlumberger limited and subsidiaries shares of common stock issued in treasury shares outstanding ( stated in millions ) .

                                                 | issued | in treasury  | shares outstanding
------------------------------------------------ | ------ | ------------ | ------------------
balance january 1 2008                           | 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
acquisition of smith international inc .         | 100    | 76           | 176
shares sold to optionees less shares exchanged   | 2013   | 6            | 6
shares issued under employee stock purchase plan | 2013   | 3            | 3
stock repurchase program                         | 2013   | -27 ( 27 )   | -27 ( 27 )
issued on conversions of debentures              | 2013   | 8            | 8
balance december 31 2010                         | 1434   | -73 ( 73 )   | 1361

see the notes to consolidated financial statements part ii , item 8


december 31 , 2007 , 2006 and 2005 , included ( in millions ) : .

                                                                               | 2007           | 2006             | 2005
------------------------------------------------------------------------------ | -------------- | ---------------- | ------
( gain ) /loss on disposition or impairment of acquired assets and obligations | $ -1.2 ( 1.2 ) | $ -19.2 ( 19.2 ) | $ 3.2
consulting and professional fees                                               | 1.0            | 8.8              | 5.6
employee severance and retention                                               | 1.6            | 3.3              | 13.3
information technology integration                                             | 2.6            | 3.0              | 6.9
in-process research & development                                              | 6.5            | 2.9              | 2013
integration personnel                                                          | 2013           | 2.5              | 3.1
facility and employee relocation                                               | 2013           | 1.0              | 6.2
distributor acquisitions                                                       | 4.1            | 2013             | 2013
sales agent and lease contract terminations                                    | 5.4            | 0.2              | 12.7
other                                                                          | 5.2            | 3.6              | 5.6
acquisition integration and other                                              | $ 25.2         | $ 6.1            | $ 56.6

in-process research and development charges for 2007 are related to the acquisitions of endius and orthosoft .
included in the gain/loss on disposition or impairment of acquired assets and obligations for 2006 is the sale of the former centerpulse austin land and facilities for a gain of $ 5.1 million and the favorable settlement of two pre- acquisition contingent liabilities .
these gains were offset by a $ 13.4 million impairment charge for certain centerpulse tradename and trademark intangibles based principally in our europe operating segment .
cash and equivalents 2013 we consider all highly liquid investments with an original maturity of three months or less to be cash equivalents .
the carrying amounts reported in the balance sheet for cash and equivalents are valued at cost , which approximates their fair value .
restricted cash is primarily composed of cash held in escrow related to certain insurance coverage .
inventories 2013 inventories , net of allowances for obsolete and slow-moving goods , are stated at the lower of cost or market , with cost determined on a first-in first-out basis .
property , plant and equipment 2013 property , plant and equipment is carried at cost less accumulated depreciation .
depreciation is computed using the straight-line method based on estimated useful lives of ten to forty years for buildings and improvements , three to eight years for machinery and equipment and generally five years for instruments .
maintenance and repairs are expensed as incurred .
in accordance with statement of financial accounting standards ( 201csfas 201d ) no .
144 , 201caccounting for the impairment or disposal of long-lived assets , 201d we review property , plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable .
an impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount .
an impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value .
software costs 2013 we capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended .
capitalized software costs generally include external direct costs of materials and services utilized in developing or obtaining computer software and compensation and related benefits for employees who are directly associated with the software project .
capitalized software costs are included in property , plant and equipment on our balance sheet and amortized on a straight-line basis when placed into service over the estimated useful lives of the software , which approximate three to seven years .
instruments 2013 instruments are hand held devices used by orthopaedic surgeons during total joint replacement and other surgical procedures .
instruments are recognized as long-lived assets and are included in property , plant and equipment .
undeployed instruments are carried at cost , net of allowances for excess and obsolete instruments .
instruments in the field are carried at cost less accumulated depreciation .
depreciation is computed using the straight-line method based on average estimated useful lives , determined principally in reference to associated product life cycles , primarily five years .
we review instruments for impairment in accordance with sfas no .
144 .
depreciation of instruments is recognized as selling , general and administrative expense .
goodwill 2013 we account for goodwill in accordance with sfas no .
142 , 201cgoodwill and other intangible assets 201d .
goodwill is not amortized but is subject to annual impairment tests .
goodwill has been assigned to reporting units , which are consistent with our operating segments .
we perform annual impairment tests by comparing each reporting unit 2019s fair value to its carrying amount to determine if there is potential impairment .
we perform this test in the fourth quarter of the year .
if the fair value of the reporting unit is less than its carrying value , an impairment loss is recorded to the extent that the implied fair value of the reporting unit goodwill is less than the carrying value of the reporting unit goodwill .
the fair value of the reporting unit and the implied fair value of goodwill are determined based upon market multiples .
intangible assets 2013 we account for intangible assets in accordance with sfas no .
142 .
intangible assets are initially measured at their fair value .
we have determined the fair value of our intangible assets either by the fair value of the consideration exchanged for the intangible asset , or the estimated after-tax discounted cash flows expected to be generated from the intangible asset .
intangible assets with an indefinite life , including certain trademarks and trade names , are not amortized .
the useful lives of indefinite life intangible assets are assessed annually to determine whether events and circumstances continue to support an indefinite life .
intangible assets with a finite life , including core and developed technology , certain trademarks and trade names , z i m m e r h o l d i n g s , i n c .
2 0 0 7 f o r m 1 0 - k a n n u a l r e p o r t notes to consolidated financial statements ( continued )


product management , business development and client service .
our alternatives products fall into two main categories 2013 core , which includes hedge funds , funds of funds ( hedge funds and private equity ) and real estate offerings , and currency and commodities .
the products offered under the bai umbrella are described below .
2022 hedge funds ended the year with $ 26.6 billion in aum , down $ 1.4 billion as net inflows into single- strategy hedge funds of $ 1.0 billion were more than offset by return of capital on opportunistic funds .
market valuation gains contributed $ 1.1 billion to aum growth .
hedge fund aum includes a variety of single-strategy , multi-strategy , and global macro , as well as portable alpha , distressed and opportunistic offerings .
products include both open-end hedge funds and similar products , and closed-end funds created to take advantage of specific opportunities over a defined , often longer- term investment horizon .
2022 funds of funds aum increased $ 6.3 billion , or 28% ( 28 % ) , to $ 29.1 billion at december 31 , 2012 , including $ 17.1 billion in funds of hedge funds and hybrid vehicles and $ 12.0 billion in private equity funds of funds .
growth largely reflected $ 6.2 billion of assets from srpep as we expanded our fund of funds product offerings and further engage in european and asian markets .
2022 real estate and hard assets aum totaled $ 12.7 billion , down $ 0.1 billion , or 1% ( 1 % ) , reflecting $ 0.6 billion in client net redemptions and distributions and $ 0.5 billion in portfolio valuation gains .
offerings include high yield debt and core , value-added and opportunistic equity portfolios and renewable power funds .
we continued to expand our real estate platform and product offerings with the launch of our first u.s .
real estate investment trust ( 201creit 201d ) mutual fund and addition of an infrastructure debt team to further increase and diversify our offerings within global infrastructure investing .
currency and commodities .
aum in currency and commodities strategies totaled $ 41.4 billion at year-end 2012 , flat from year-end 2011 , reflecting net outflows of $ 1.5 billion , primarily from active currency and currency overlays , and $ 0.8 billion of market and foreign exchange gains .
claymore also contributed $ 0.9 billion of aum .
currency and commodities products include a range of active and passive products .
our ishares commodities products represented $ 24.3 billion of aum , including $ 0.7 billion acquired from claymore , and are not eligible for performance fees .
cash management cash management aum totaled $ 263.7 billion at december 31 , 2012 , up $ 9.1 billion , or 4% ( 4 % ) , from year-end 2011 .
cash management products include taxable and tax-exempt money market funds and customized separate accounts .
portfolios may be denominated in u.s .
dollar , euro or british pound .
at year-end 2012 , 84% ( 84 % ) of cash aum was managed for institutions and 16% ( 16 % ) for retail and hnw investors .
the investor base was also predominantly in the americas , with 69% ( 69 % ) of aum managed for investors in the americas and 31% ( 31 % ) for clients in other regions , mostly emea-based .
we generated net inflows of $ 5.0 billion during 2012 , reflecting continued uncertainty around future regulatory changes and a challenging investing environment .
to meet investor needs , we sought to provide new solutions and choices for our clients by launching short duration products in the united states , which both immediately address the challenge of a continuing low interest rate environment and will also be important investment options should regulatory changes occur .
in the emea business , and in particular for our euro product set , we have taken action to ensure that we can provide effective cash management solutions in the face of a potentially negative yield environment by taking steps to launch new products and re-engineer our existing product set .
ishares our industry-leading u.s .
and international ishares etp suite is discussed below .
component changes in aum 2013 ishares ( dollar amounts in millions ) 12/31/2011 net new business acquired market /fx app ( dep ) 12/31/2012 .

( dollar amounts in millions ) | 12/31/2011 | net new business | net acquired | market /fx app ( dep ) | 12/31/2012
------------------------------ | ---------- | ---------------- | ------------ | ---------------------- | ----------
equity                         | $ 419651   | $ 52973          | $ 3517       | $ 58507                | $ 534648
fixed income                   | 153802     | 28785            | 3026         | 7239                   | 192852
multi-asset class              | 562        | 178              | 78           | 51                     | 869
alternatives                   | 19341      | 3232             | 701          | 1064                   | 24338
long-term                      | $ 593356   | $ 85168          | $ 7322       | $ 66861                | $ 752707


the following table details the growth in global weighted average berths and the global , north american , european and asia/pacific cruise guests over the past five years ( in thousands , except berth data ) : weighted- average supply of berths marketed globally ( 1 ) caribbean cruises ltd .
total berths ( 2 ) global cruise guests ( 1 ) american cruise guests ( 1 ) ( 3 ) european cruise guests ( 1 ) ( 4 ) asia/pacific cruise guests ( 1 ) ( 5 ) .

year | weighted-averagesupply ofberthsmarketedglobally ( 1 ) | royal caribbean cruises ltd . total berths ( 2 ) | globalcruiseguests ( 1 ) | north american cruise guests ( 1 ) ( 3 ) | european cruise guests ( 1 ) ( 4 ) | asia/pacific cruise guests ( 1 ) ( 5 )
---- | ----------------------------------------------------- | ------------------------------------------------ | ------------------------ | ---------------------------------------- | ---------------------------------- | --------------------------------------
2012 | 425000                                                | 98650                                            | 20813                    | 11641                                    | 6225                               | 1474
2013 | 432000                                                | 98750                                            | 21343                    | 11710                                    | 6430                               | 2045
2014 | 448000                                                | 105750                                           | 22039                    | 12269                                    | 6387                               | 2382
2015 | 469000                                                | 112700                                           | 23000                    | 12004                                    | 6587                               | 3129
2016 | 493000                                                | 123270                                           | 24000                    | 12581                                    | 6542                               | 3636

_______________________________________________________________________________ ( 1 ) source : our estimates of the number of global cruise guests and the weighted-average supply of berths marketed globally are based on a combination of data that we obtain from various publicly available cruise industry trade information sources .
we use data obtained from seatrade insider , cruise industry news and company press releases to estimate weighted-average supply of berths and clia and g.p .
wild to estimate cruise guest information .
in addition , our estimates incorporate our own statistical analysis utilizing the same publicly available cruise industry data as a base .
( 2 ) total berths include our berths related to our global brands and partner brands .
( 3 ) our estimates include the united states and canada .
( 4 ) our estimates include european countries relevant to the industry ( e.g. , nordics , germany , france , italy , spain and the united kingdom ) .
( 5 ) our estimates include the southeast asia ( e.g. , singapore , thailand and the philippines ) , east asia ( e.g. , china and japan ) , south asia ( e.g. , india and pakistan ) and oceanian ( e.g. , australia and fiji islands ) regions .
north america the majority of industry cruise guests are sourced from north america , which represented approximately 52% ( 52 % ) of global cruise guests in 2016 .
the compound annual growth rate in cruise guests sourced from this market was approximately 2% ( 2 % ) from 2012 to 2016 .
europe industry cruise guests sourced from europe represented approximately 27% ( 27 % ) of global cruise guests in 2016 .
the compound annual growth rate in cruise guests sourced from this market was approximately 1% ( 1 % ) from 2012 to 2016 .
asia/pacific industry cruise guests sourced from the asia/pacific region represented approximately 15% ( 15 % ) of global cruise guests in 2016 .
the compound annual growth rate in cruise guests sourced from this market was approximately 25% ( 25 % ) from 2012 to 2016 .
the asia/pacific region is experiencing the highest growth rate of the major regions , although it will continue to represent a relatively small sector compared to north america .
competition we compete with a number of cruise lines .
our principal competitors are carnival corporation & plc , which owns , among others , aida cruises , carnival cruise line , costa cruises , cunard line , holland america line , p&o cruises , princess cruises and seabourn ; disney cruise line ; msc cruises ; and norwegian cruise line holdings ltd , which owns norwegian cruise line , oceania cruises and regent seven seas cruises .
cruise lines compete with


$ 43.3 million in 2011 compared to $ 34.1 million in 2010 .
the retail segment represented 13% ( 13 % ) and 15% ( 15 % ) of the company 2019s total net sales in 2011 and 2010 , respectively .
the retail segment 2019s operating income was $ 4.7 billion , $ 3.2 billion , and $ 2.3 billion during 2012 , 2011 , and 2010 respectively .
these year-over-year increases in retail operating income were primarily attributable to higher overall net sales that resulted in significantly higher average revenue per store during the respective years .
gross margin gross margin for 2012 , 2011 and 2010 are as follows ( in millions , except gross margin percentages ) : .

                        | 2012             | 2011             | 2010
----------------------- | ---------------- | ---------------- | ----------------
net sales               | $ 156508         | $ 108249         | $ 65225
cost of sales           | 87846            | 64431            | 39541
gross margin            | $ 68662          | $ 43818          | $ 25684
gross margin percentage | 43.9% ( 43.9 % ) | 40.5% ( 40.5 % ) | 39.4% ( 39.4 % )

the gross margin percentage in 2012 was 43.9% ( 43.9 % ) , compared to 40.5% ( 40.5 % ) in 2011 .
this year-over-year increase in gross margin was largely driven by lower commodity and other product costs , a higher mix of iphone sales , and improved leverage on fixed costs from higher net sales .
the increase in gross margin was partially offset by the impact of a stronger u.s .
dollar .
the gross margin percentage during the first half of 2012 was 45.9% ( 45.9 % ) compared to 41.4% ( 41.4 % ) during the second half of 2012 .
the primary drivers of higher gross margin in the first half of 2012 compared to the second half are a higher mix of iphone sales and improved leverage on fixed costs from higher net sales .
additionally , gross margin in the second half of 2012 was also affected by the introduction of new products with flat pricing that have higher cost structures and deliver greater value to customers , price reductions on certain existing products , higher transition costs associated with product launches , and continued strengthening of the u.s .
dollar ; partially offset by lower commodity costs .
the gross margin percentage in 2011 was 40.5% ( 40.5 % ) , compared to 39.4% ( 39.4 % ) in 2010 .
this year-over-year increase in gross margin was largely driven by lower commodity and other product costs .
the company expects to experience decreases in its gross margin percentage in future periods , as compared to levels achieved during 2012 , and the company anticipates gross margin of about 36% ( 36 % ) during the first quarter of 2013 .
expected future declines in gross margin are largely due to a higher mix of new and innovative products with flat or reduced pricing that have higher cost structures and deliver greater value to customers and anticipated component cost and other cost increases .
future strengthening of the u.s .
dollar could further negatively impact gross margin .
the foregoing statements regarding the company 2019s expected gross margin percentage in future periods , including the first quarter of 2013 , are forward-looking and could differ from actual results because of several factors including , but not limited to those set forth above in part i , item 1a of this form 10-k under the heading 201crisk factors 201d and those described in this paragraph .
in general , gross margins and margins on individual products will remain under downward pressure due to a variety of factors , including continued industry wide global product pricing pressures , increased competition , compressed product life cycles , product transitions and potential increases in the cost of components , as well as potential increases in the costs of outside manufacturing services and a potential shift in the company 2019s sales mix towards products with lower gross margins .
in response to competitive pressures , the company expects it will continue to take product pricing actions , which would adversely affect gross margins .
gross margins could also be affected by the company 2019s ability to manage product quality and warranty costs effectively and to stimulate demand for certain of its products .
due to the company 2019s significant international operations , financial results can be significantly affected in the short-term by fluctuations in exchange rates.


2018 annual report 21 item 3 : legal proceedings snap-on is involved in various legal matters that are being litigated and/or settled in the ordinary course of business .
although it is not possible to predict the outcome of these legal matters , management believes that the results of these legal matters will not have a material impact on snap-on 2019s consolidated financial position , results of operations or cash flows .
item 4 : mine safety disclosures not applicable .
part ii item 5 : market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities snap-on had 55610781 shares of common stock outstanding as of 2018 year end .
snap-on 2019s stock is listed on the new york stock exchange under the ticker symbol 201csna . 201d at february 8 , 2019 , there were 4704 registered holders of snap-on common stock .
issuer purchases of equity securities the following chart discloses information regarding the shares of snap-on 2019s common stock repurchased by the company during the fourth quarter of fiscal 2018 , all of which were purchased pursuant to the board 2019s authorizations that the company has publicly announced .
snap-on has undertaken stock repurchases from time to time to offset dilution created by shares issued for employee and franchisee stock purchase plans , and equity plans , and for other corporate purposes , as well as when the company believes market conditions are favorable .
the repurchase of snap-on common stock is at the company 2019s discretion , subject to prevailing financial and market conditions .
period shares purchased average price per share shares purchased as part of publicly announced plans or programs approximate value of shares that may yet be purchased under publicly announced plans or programs* .

period               | sharespurchased | average priceper share | shares purchased aspart of publiclyannounced plans orprograms | approximatevalue of sharesthat may yet bepurchased underpubliclyannounced plansor programs*
-------------------- | --------------- | ---------------------- | ------------------------------------------------------------- | -------------------------------------------------------------------------------------------
09/30/18 to 10/27/18 | 90000           | $ 149.28               | 90000                                                         | $ 292.4 million
10/28/18 to 11/24/18 | 335000          | $ 159.35               | 335000                                                        | $ 239.1 million
11/25/18 to 12/29/18 | 205000          | $ 160.20               | 205000                                                        | $ 215.7 million
total/average        | 630000          | $ 158.19               | 630000                                                        | n/a

______________________ n/a : not applicable * subject to further adjustment pursuant to the 1996 authorization described below , as of december 29 , 2018 , the approximate value of shares that may yet be purchased pursuant to the outstanding board authorizations discussed below is $ 215.7 million .
2022 in 1996 , the board authorized the company to repurchase shares of the company 2019s common stock from time to time in the open market or in privately negotiated transactions ( 201cthe 1996 authorization 201d ) .
the 1996 authorization allows the repurchase of up to the number of shares issued or delivered from treasury from time to time under the various plans the company has in place that call for the issuance of the company 2019s common stock .
because the number of shares that are purchased pursuant to the 1996 authorization will change from time to time as ( i ) the company issues shares under its various plans ; and ( ii ) shares are repurchased pursuant to this authorization , the number of shares authorized to be repurchased will vary from time to time .
the 1996 authorization will expire when terminated by the board .
when calculating the approximate value of shares that the company may yet purchase under the 1996 authorization , the company assumed a price of $ 148.71 , $ 161.00 and $ 144.25 per share of common stock as of the end of the fiscal 2018 months ended october 27 , 2018 , november 24 , 2018 , and december 29 , 2018 , respectively .
2022 in 2017 , the board authorized the repurchase of an aggregate of up to $ 500 million of the company 2019s common stock ( 201cthe 2017 authorization 201d ) .
the 2017 authorization will expire when the aggregate repurchase price limit is met , unless terminated earlier by the board.


the target awards for the other named executive officers were set as follows : joseph f .
domino , ceo - entergy texas ( 50% ( 50 % ) ) ; hugh t .
mcdonald , ceo - entergy arkansas ( 50% ( 50 % ) ) ; haley fisackerly , ceo - entergy mississippi ( 40% ( 40 % ) ) ; william m .
mohl ( 60% ( 60 % ) ) , ceo - entergy gulf states and entergy louisiana ; charles l .
rice , jr .
( 40% ( 40 % ) ) , ceo - entergy new orleans and theodore h .
bunting , jr .
- principal accounting officer - the subsidiaries ( 60% ( 60 % ) ) .
the target awards for the named executive officers ( other than entergy named executive officers ) were set by their respective supervisors ( subject to ultimate approval of entergy 2019s chief executive officer ) who allocated a potential incentive pool established by the personnel committee among various of their direct and indirect reports .
in setting the target awards , the supervisor took into account considerations similar to those used by the personnel committee in setting the target awards for entergy 2019s named executive officers .
target awards are set based on an executive officer 2019s current position and executive management level within the entergy organization .
executive management levels at entergy range from level 1 thorough level 4 .
mr .
denault and mr .
taylor hold positions in level 2 whereas mr .
bunting and mr .
mohl hold positions in level 3 and mr .
domino , mr .
fisackerly , mr .
mcdonald and mr .
rice hold positions in level 4 .
accordingly , their respective incentive targets differ one from another based on the external market data developed by the committee 2019s independent compensation consultant and the other factors noted above .
in december 2010 , the committee determined the executive incentive plan targets to be used for purposes of establishing annual bonuses for 2011 .
the committee 2019s determination of the target levels was made after full board review of management 2019s 2011 financial plan for entergy corporation , upon recommendation of the finance committee , and after the committee 2019s determination that the established targets aligned with entergy corporation 2019s anticipated 2011 financial performance as reflected in the financial plan .
the targets established to measure management performance against as reported results were: .

                                      | minimum | target | maximum
------------------------------------- | ------- | ------ | -------
earnings per share ( $ )              | $ 6.10  | $ 6.60 | $ 7.10
operating cash flow ( $ in billions ) | $ 2.97  | $ 3.35 | $ 3.70

operating cash flow ( $ in billions ) in january 2012 , after reviewing earnings per share and operating cash flow results against the performance objectives in the above table , the committee determined that entergy corporation had exceeded as reported earnings per share target of $ 6.60 by $ 0.95 in 2011 while falling short of the operating cash flow goal of $ 3.35 billion by $ 221 million in 2011 .
in accordance with the terms of the annual incentive plan , in january 2012 , the personnel committee certified the 2012 entergy achievement multiplier at 128% ( 128 % ) of target .
under the terms of the management effectiveness program , the entergy achievement multiplier is automatically increased by 25 percent for the members of the office of the chief executive if the pre- established underlying performance goals established by the personnel committee are satisfied at the end of the performance period , subject to the personnel committee's discretion to adjust the automatic multiplier downward or eliminate it altogether .
in accordance with section 162 ( m ) of the internal revenue code , the multiplier which entergy refers to as the management effectiveness factor is intended to provide the committee a mechanism to take into consideration specific achievement factors relating to the overall performance of entergy corporation .
in january 2012 , the committee eliminated the management effectiveness factor with respect to the 2011 incentive awards , reflecting the personnel committee's determination that the entergy achievement multiplier , in and of itself without the management effectiveness factor , was consistent with the performance levels achieved by management .
the annual incentive awards for the named executive officers ( other than mr .
leonard , mr .
denault and mr .
taylor ) are awarded from an incentive pool approved by the committee .
from this pool , each named executive officer 2019s supervisor determines the annual incentive payment based on the entergy achievement multiplier .
the supervisor has the discretion to increase or decrease the multiple used to determine an incentive award based on individual and business unit performance .
the incentive awards are subject to the ultimate approval of entergy 2019s chief executive officer.


celanese purchases of its equity securities information regarding repurchases of our common stock during the three months ended december 31 , 2014 is as follows : period number of shares purchased ( 1 ) average price paid per share total number of shares purchased as part of publicly announced program approximate dollar value of shares remaining that may be purchased under the program ( 2 ) .

period               | totalnumberof sharespurchased ( 1 ) | averageprice paidper share | total numberof sharespurchased aspart of publiclyannounced program | approximatedollarvalue of sharesremaining thatmay bepurchased underthe program ( 2 )
-------------------- | ----------------------------------- | -------------------------- | ------------------------------------------------------------------ | ------------------------------------------------------------------------------------
october 1 - 31 2014  | 192580                              | $ 58.02                    | 164800                                                             | $ 490000000
november 1 - 30 2014 | 468128                              | $ 59.25                    | 468128                                                             | $ 463000000
december 1 - 31 2014 | 199796                              | $ 60.78                    | 190259                                                             | $ 451000000
total                | 860504                              |                            | 823187                                                             |

___________________________ ( 1 ) includes 27780 and 9537 for october and december 2014 , respectively , related to shares withheld from employees to cover their statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock units .
( 2 ) our board of directors has authorized the aggregate repurchase of $ 1.4 billion of our common stock since february 2008 .
see note 17 - stockholders' equity in the accompanying consolidated financial statements for further information .
performance graph the following performance graph and related information shall not be deemed "soliciting material" or to be "filed" with the securities and exchange commission , nor shall such information be incorporated by reference into any future filing under the securities act of 1933 or securities exchange act of 1934 , each as amended , except to the extent that we specifically incorporate it by reference into such filing .
comparison of cumulative total return


2015 compared to 2014 mfc 2019s net sales in 2015 decreased $ 322 million , or 5% ( 5 % ) , compared to the same period in 2014 .
the decrease was attributable to lower net sales of approximately $ 345 million for air and missile defense programs due to fewer deliveries ( primarily pac-3 ) and lower volume ( primarily thaad ) ; and approximately $ 85 million for tactical missile programs due to fewer deliveries ( primarily guided multiple launch rocket system ( gmlrs ) ) and joint air-to-surface standoff missile , partially offset by increased deliveries for hellfire .
these decreases were partially offset by higher net sales of approximately $ 55 million for energy solutions programs due to increased volume .
mfc 2019s operating profit in 2015 decreased $ 62 million , or 5% ( 5 % ) , compared to 2014 .
the decrease was attributable to lower operating profit of approximately $ 100 million for fire control programs due primarily to lower risk retirements ( primarily lantirn and sniper ) ; and approximately $ 65 million for tactical missile programs due to lower risk retirements ( primarily hellfire and gmlrs ) and fewer deliveries .
these decreases were partially offset by higher operating profit of approximately $ 75 million for air and missile defense programs due to increased risk retirements ( primarily thaad ) .
adjustments not related to volume , including net profit booking rate adjustments and other matters , were approximately $ 60 million lower in 2015 compared to 2014 .
backlog backlog decreased in 2016 compared to 2015 primarily due to lower orders on pac-3 , hellfire , and jassm .
backlog increased in 2015 compared to 2014 primarily due to higher orders on pac-3 , lantirn/sniper and certain tactical missile programs , partially offset by lower orders on thaad .
trends we expect mfc 2019s net sales to increase in the mid-single digit percentage range in 2017 as compared to 2016 driven primarily by our air and missile defense programs .
operating profit is expected to be flat or increase slightly .
accordingly , operating profit margin is expected to decline from 2016 levels as a result of contract mix and fewer risk retirements in 2017 compared to 2016 .
rotary and mission systems as previously described , on november 6 , 2015 , we acquired sikorsky and aligned the sikorsky business under our rms business segment .
the 2015 results of the acquired sikorsky business have been included in our financial results from the november 6 , 2015 acquisition date through december 31 , 2015 .
as a result , our consolidated operating results and rms business segment operating results for the year ended december 31 , 2015 do not reflect a full year of sikorsky operations .
our rms business segment provides design , manufacture , service and support for a variety of military and civil helicopters , ship and submarine mission and combat systems ; mission systems and sensors for rotary and fixed-wing aircraft ; sea and land-based missile defense systems ; radar systems ; the littoral combat ship ( lcs ) ; simulation and training services ; and unmanned systems and technologies .
in addition , rms supports the needs of government customers in cybersecurity and delivers communication and command and control capabilities through complex mission solutions for defense applications .
rms 2019 major programs include black hawk and seahawk helicopters , aegis combat system ( aegis ) , lcs , space fence , advanced hawkeye radar system , tpq-53 radar system , ch-53k development helicopter , and vh-92a helicopter program .
rms 2019 operating results included the following ( in millions ) : .

                   | 2016           | 2015           | 2014
------------------ | -------------- | -------------- | ----------------
net sales          | $ 13462        | $ 9091         | $ 8732
operating profit   | 906            | 844            | 936
operating margin   | 6.7% ( 6.7 % ) | 9.3% ( 9.3 % ) | 10.7% ( 10.7 % )
backlog atyear-end | $ 28400        | $ 30100        | $ 13300

2016 compared to 2015 rms 2019 net sales in 2016 increased $ 4.4 billion , or 48% ( 48 % ) , compared to 2015 .
the increase was primarily attributable to higher net sales of approximately $ 4.6 billion from sikorsky , which was acquired on november 6 , 2015 .
net sales for 2015 include sikorsky 2019s results subsequent to the acquisition date , net of certain revenue adjustments required to account for the acquisition of this business .
this increase was partially offset by lower net sales of approximately $ 70 million for training


dividends for a summary of the cash dividends paid on citi 2019s outstanding common stock during 2009 and 2010 , see note 33 to the consolidated financial statements .
for so long as the u.s .
government holds any citigroup trust preferred securities acquired pursuant to the exchange offers consummated in 2009 , citigroup has agreed not to pay a quarterly common stock dividend exceeding $ 0.01 per quarter , subject to certain customary exceptions .
further , any dividend on citi 2019s outstanding common stock would need to be made in compliance with citi 2019s obligations to any remaining outstanding citigroup preferred stock .
performance graph comparison of five-year cumulative total return the following graph and table compare the cumulative total return on citigroup 2019s common stock with the cumulative total return of the s&p 500 index and the s&p financial index over the five-year period extending through december 31 , 2010 .
the graph and table assume that $ 100 was invested on december 31 , 2005 in citigroup 2019s common stock , the s&p 500 index and the s&p financial index and that all dividends were reinvested .
citigroup s&p 500 index s&p financial index comparison of five-year cumulative total return for the years ended 2006 2007 2008 2009 2010 .

december 31, | citigroup | s&p 500 index | s&p financial index
------------ | --------- | ------------- | -------------------
2006         | 119.55    | 115.79        | 119.19
2007         | 66.10     | 122.15        | 96.98
2008         | 15.88     | 76.96         | 43.34
2009         | 7.85      | 97.33         | 50.80
2010         | 11.22     | 111.99        | 56.96


table of contents adobe inc .
notes to consolidated financial statements ( continued ) stock options the 2003 plan allows us to grant options to all employees , including executive officers , outside consultants and non- employee directors .
this plan will continue until the earlier of ( i ) termination by the board or ( ii ) the date on which all of the shares available for issuance under the plan have been issued and restrictions on issued shares have lapsed .
option vesting periods used in the past were generally four years and expire seven years from the effective date of grant .
we eliminated the use of stock option grants for all employees and non-employee directors but may choose to issue stock options in the future .
performance share programs our 2018 , 2017 and 2016 performance share programs aim to help focus key employees on building stockholder value , provide significant award potential for achieving outstanding company performance and enhance the ability of the company to attract and retain highly talented and competent individuals .
the executive compensation committee of our board of directors approves the terms of each of our performance share programs , including the award calculation methodology , under the terms of our 2003 plan .
shares may be earned based on the achievement of an objective relative total stockholder return measured over a three-year performance period .
performance share awards will be awarded and fully vest upon the later of the executive compensation committee's certification of the level of achievement or the three-year anniversary of each grant .
program participants generally have the ability to receive up to 200% ( 200 % ) of the target number of shares originally granted .
on january 24 , 2018 , the executive compensation committee approved the 2018 performance share program , the terms of which are similar to prior year performance share programs as discussed above .
as of november 30 , 2018 , the shares awarded under our 2018 , 2017 and 2016 performance share programs are yet to be achieved .
issuance of shares upon exercise of stock options , vesting of restricted stock units and performance shares , and purchases of shares under the espp , we will issue treasury stock .
if treasury stock is not available , common stock will be issued .
in order to minimize the impact of on-going dilution from exercises of stock options and vesting of restricted stock units and performance shares , we instituted a stock repurchase program .
see note 12 for information regarding our stock repurchase programs .
valuation of stock-based compensation stock-based compensation cost is measured at the grant date based on the fair value of the award .
our performance share awards are valued using a monte carlo simulation model .
the fair value of the awards are fixed at grant date and amortized over the longer of the remaining performance or service period .
we use the black-scholes option pricing model to determine the fair value of espp shares .
the determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables .
these variables include our expected stock price volatility over the expected term of the awards , actual and projected employee stock option exercise behaviors , a risk-free interest rate and any expected dividends .
the expected term of espp shares is the average of the remaining purchase periods under each offering period .
the assumptions used to value employee stock purchase rights were as follows: .

                           | 2018                                | 2017                                | 2016
-------------------------- | ----------------------------------- | ----------------------------------- | -----------------------
expected life ( in years ) | 0.5 - 2.0                           | 0.5 - 2.0                           | 0.5 - 2.0
volatility                 | 26% ( 26 % ) - 29% ( 29 % )         | 22% ( 22 % ) - 27% ( 27 % )         | 26 - 29% ( 29 % )
risk free interest rate    | 1.54% ( 1.54 % ) - 2.52% ( 2.52 % ) | 0.62% ( 0.62 % ) - 1.41% ( 1.41 % ) | 0.37 - 1.06% ( 1.06 % )


the goldman sachs group , inc .
and subsidiaries notes to consolidated financial statements lending commitments the firm 2019s lending commitments are agreements to lend with fixed termination dates and depend on the satisfaction of all contractual conditions to borrowing .
these commitments are presented net of amounts syndicated to third parties .
the total commitment amount does not necessarily reflect actual future cash flows because the firm may syndicate all or substantial additional portions of these commitments .
in addition , commitments can expire unused or be reduced or cancelled at the counterparty 2019s request .
the table below presents information about lending commitments. .

$ in millions       | as of december 2018 | as of december 2017
------------------- | ------------------- | -------------------
held for investment | $ 120997            | $ 124504
held for sale       | 8602                | 9838
at fair value       | 7983                | 9404
total               | $ 137582            | $ 143746

in the table above : 2030 held for investment lending commitments are accounted for on an accrual basis .
see note 9 for further information about such commitments .
2030 held for sale lending commitments are accounted for at the lower of cost or fair value .
2030 gains or losses related to lending commitments at fair value , if any , are generally recorded , net of any fees in other principal transactions .
2030 substantially all lending commitments relates to the firm 2019s investing & lending segment .
commercial lending .
the firm 2019s commercial lending commitments were primarily extended to investment-grade corporate borrowers .
such commitments included $ 93.99 billion as of december 2018 and $ 85.98 billion as of december 2017 , related to relationship lending activities ( principally used for operating and general corporate purposes ) and $ 27.92 billion as of december 2018 and $ 42.41 billion as of december 2017 , related to other investment banking activities ( generally extended for contingent acquisition financing and are often intended to be short-term in nature , as borrowers often seek to replace them with other funding sources ) .
the firm also extends lending commitments in connection with other types of corporate lending , as well as commercial real estate financing .
see note 9 for further information about funded loans .
sumitomo mitsui financial group , inc .
( smfg ) provides the firm with credit loss protection on certain approved loan commitments ( primarily investment-grade commercial lending commitments ) .
the notional amount of such loan commitments was $ 15.52 billion as of december 2018 and $ 25.70 billion as of december 2017 .
the credit loss protection on loan commitments provided by smfg is generally limited to 95% ( 95 % ) of the first loss the firm realizes on such commitments , up to a maximum of approximately $ 950 million .
in addition , subject to the satisfaction of certain conditions , upon the firm 2019s request , smfg will provide protection for 70% ( 70 % ) of additional losses on such commitments , up to a maximum of $ 1.0 billion , of which $ 550 million of protection had been provided as of both december 2018 and december 2017 .
the firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by smfg .
these instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity , or credit default swaps that reference a market index .
warehouse financing .
the firm provides financing to clients who warehouse financial assets .
these arrangements are secured by the warehoused assets , primarily consisting of consumer and corporate loans .
contingent and forward starting collateralized agreements / forward starting collateralized financings forward starting collateralized agreements includes resale and securities borrowing agreements , and forward starting collateralized financings includes repurchase and secured lending agreements that settle at a future date , generally within three business days .
the firm also enters into commitments to provide contingent financing to its clients and counterparties through resale agreements .
the firm 2019s funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused .
letters of credit the firm has commitments under letters of credit issued by various banks which the firm provides to counterparties in lieu of securities or cash to satisfy various collateral and margin deposit requirements .
investment commitments investment commitments includes commitments to invest in private equity , real estate and other assets directly and through funds that the firm raises and manages .
investment commitments included $ 2.42 billion as of december 2018 and $ 2.09 billion as of december 2017 , related to commitments to invest in funds managed by the firm .
if these commitments are called , they would be funded at market value on the date of investment .
goldman sachs 2018 form 10-k 159


jpmorgan chase & co./2016 annual report 49 net interest income excluding cib 2019s markets businesses in addition to reviewing net interest income on a managed basis , management also reviews net interest income excluding net interest income arising from cib 2019s markets businesses to assess the performance of the firm 2019s lending , investing ( including asset-liability management ) and deposit-raising activities .
cib 2019s markets businesses represent both fixed income markets and equity markets .
the data presented below are non-gaap financial measures due to the exclusion of net interest income from cib 2019s markets businesses ( 201ccib markets 201d ) .
management believes this exclusion provides investors and analysts with another measure by which to analyze the non- markets-related business trends of the firm and provides a comparable measure to other financial institutions that are primarily focused on lending , investing and deposit-raising activities .
year ended december 31 , ( in millions , except rates ) 2016 2015 2014 net interest income 2013 managed basis ( a ) ( b ) $ 47292 $ 44620 $ 44619 less : cib markets net interest income ( c ) 6334 5298 6032 net interest income excluding cib markets ( a ) $ 40958 $ 39322 $ 38587 average interest-earning assets $ 2101604 $ 2088242 $ 2049093 less : average cib markets interest-earning assets ( c ) 520307 510292 522989 average interest-earning assets excluding cib markets $ 1581297 $ 1577950 $ 1526104 net interest yield on average interest-earning assets 2013 managed basis 2.25% ( 2.25 % ) 2.14% ( 2.14 % ) 2.18% ( 2.18 % ) net interest yield on average cib markets interest- earning assets ( c ) 1.22 1.04 1.15 net interest yield on average interest-earning assets excluding cib markets 2.59% ( 2.59 % ) 2.49% ( 2.49 % ) 2.53% ( 2.53 % ) ( a ) interest includes the effect of related hedges .
taxable-equivalent amounts are used where applicable .
( b ) for a reconciliation of net interest income on a reported and managed basis , see reconciliation from the firm 2019s reported u.s .
gaap results to managed basis on page 48 .
( c ) prior period amounts were revised to align with cib 2019s markets businesses .
for further information on cib 2019s markets businesses , see page 61 .
calculation of certain u.s .
gaap and non-gaap financial measures certain u.s .
gaap and non-gaap financial measures are calculated as follows : book value per share ( 201cbvps 201d ) common stockholders 2019 equity at period-end / common shares at period-end overhead ratio total noninterest expense / total net revenue return on assets ( 201croa 201d ) reported net income / total average assets return on common equity ( 201croe 201d ) net income* / average common stockholders 2019 equity return on tangible common equity ( 201crotce 201d ) net income* / average tangible common equity tangible book value per share ( 201ctbvps 201d ) tangible common equity at period-end / common shares at period-end * represents net income applicable to common equity .

year ended december 31 ( in millions except rates )                         | 2016             | 2015             | 2014
--------------------------------------------------------------------------- | ---------------- | ---------------- | ----------------
net interest income 2013 managed basis ( a ) ( b )                          | $ 47292          | $ 44620          | $ 44619
less : cib markets net interest income ( c )                                | 6334             | 5298             | 6032
net interest income excluding cib markets ( a )                             | $ 40958          | $ 39322          | $ 38587
average interest-earning assets                                             | $ 2101604        | $ 2088242        | $ 2049093
less : average cib markets interest-earning assets ( c )                    | 520307           | 510292           | 522989
average interest-earning assets excluding cib markets                       | $ 1581297        | $ 1577950        | $ 1526104
net interest yield on average interest-earning assets 2013 managed basis    | 2.25% ( 2.25 % ) | 2.14% ( 2.14 % ) | 2.18% ( 2.18 % )
net interest yield on average cib markets interest-earning assets ( c )     | 1.22             | 1.04             | 1.15
net interest yield on average interest-earning assets excluding cib markets | 2.59% ( 2.59 % ) | 2.49% ( 2.49 % ) | 2.53% ( 2.53 % )

jpmorgan chase & co./2016 annual report 49 net interest income excluding cib 2019s markets businesses in addition to reviewing net interest income on a managed basis , management also reviews net interest income excluding net interest income arising from cib 2019s markets businesses to assess the performance of the firm 2019s lending , investing ( including asset-liability management ) and deposit-raising activities .
cib 2019s markets businesses represent both fixed income markets and equity markets .
the data presented below are non-gaap financial measures due to the exclusion of net interest income from cib 2019s markets businesses ( 201ccib markets 201d ) .
management believes this exclusion provides investors and analysts with another measure by which to analyze the non- markets-related business trends of the firm and provides a comparable measure to other financial institutions that are primarily focused on lending , investing and deposit-raising activities .
year ended december 31 , ( in millions , except rates ) 2016 2015 2014 net interest income 2013 managed basis ( a ) ( b ) $ 47292 $ 44620 $ 44619 less : cib markets net interest income ( c ) 6334 5298 6032 net interest income excluding cib markets ( a ) $ 40958 $ 39322 $ 38587 average interest-earning assets $ 2101604 $ 2088242 $ 2049093 less : average cib markets interest-earning assets ( c ) 520307 510292 522989 average interest-earning assets excluding cib markets $ 1581297 $ 1577950 $ 1526104 net interest yield on average interest-earning assets 2013 managed basis 2.25% ( 2.25 % ) 2.14% ( 2.14 % ) 2.18% ( 2.18 % ) net interest yield on average cib markets interest- earning assets ( c ) 1.22 1.04 1.15 net interest yield on average interest-earning assets excluding cib markets 2.59% ( 2.59 % ) 2.49% ( 2.49 % ) 2.53% ( 2.53 % ) ( a ) interest includes the effect of related hedges .
taxable-equivalent amounts are used where applicable .
( b ) for a reconciliation of net interest income on a reported and managed basis , see reconciliation from the firm 2019s reported u.s .
gaap results to managed basis on page 48 .
( c ) prior period amounts were revised to align with cib 2019s markets businesses .
for further information on cib 2019s markets businesses , see page 61 .
calculation of certain u.s .
gaap and non-gaap financial measures certain u.s .
gaap and non-gaap financial measures are calculated as follows : book value per share ( 201cbvps 201d ) common stockholders 2019 equity at period-end / common shares at period-end overhead ratio total noninterest expense / total net revenue return on assets ( 201croa 201d ) reported net income / total average assets return on common equity ( 201croe 201d ) net income* / average common stockholders 2019 equity return on tangible common equity ( 201crotce 201d ) net income* / average tangible common equity tangible book value per share ( 201ctbvps 201d ) tangible common equity at period-end / common shares at period-end * represents net income applicable to common equity


12 .
brokerage receivables and brokerage payables citi has receivables and payables for financial instruments sold to and purchased from brokers , dealers and customers , which arise in the ordinary course of business .
citi is exposed to risk of loss from the inability of brokers , dealers or customers to pay for purchases or to deliver the financial instruments sold , in which case citi would have to sell or purchase the financial instruments at prevailing market prices .
credit risk is reduced to the extent that an exchange or clearing organization acts as a counterparty to the transaction and replaces the broker , dealer or customer in question .
citi seeks to protect itself from the risks associated with customer activities by requiring customers to maintain margin collateral in compliance with regulatory and internal guidelines .
margin levels are monitored daily , and customers deposit additional collateral as required .
where customers cannot meet collateral requirements , citi may liquidate sufficient underlying financial instruments to bring the customer into compliance with the required margin level .
exposure to credit risk is impacted by market volatility , which may impair the ability of clients to satisfy their obligations to citi .
credit limits are established and closely monitored for customers and for brokers and dealers engaged in forwards , futures and other transactions deemed to be credit sensitive .
brokerage receivables and brokerage payables consisted of the following: .

in millions of dollars                                      | december 31 , 2016 | december 31 , 2015
----------------------------------------------------------- | ------------------ | ------------------
receivables from customers                                  | $ 10374            | $ 10435
receivables from brokers dealers and clearing organizations | 18513              | 17248
total brokerage receivables ( 1 )                           | $ 28887            | $ 27683
payables to customers                                       | $ 37237            | $ 35653
payables to brokers dealers and clearing organizations      | 19915              | 18069
total brokerage payables ( 1 )                              | $ 57152            | $ 53722

payables to brokers , dealers , and clearing organizations 19915 18069 total brokerage payables ( 1 ) $ 57152 $ 53722 ( 1 ) includes brokerage receivables and payables recorded by citi broker- dealer entities that are accounted for in accordance with the aicpa accounting guide for brokers and dealers in securities as codified in asc 940-320.


as of december 31 , 2006 , we also leased an office and laboratory facility in connecticut , additional office , distribution and storage facilities in san diego , and four foreign facilities located in japan , singapore , china and the netherlands under non-cancelable operating leases that expire at various times through july 2011 .
these leases contain renewal options ranging from one to five years .
as of december 31 , 2006 , our contractual obligations were ( in thousands ) : contractual obligation total less than 1 year 1 2013 3 years 1 2013 5 years more than 5 years .

contractual obligation | payments due by period total | payments due by period less than 1 year | payments due by period 1 2013 3 years | payments due by period 1 2013 5 years | payments due by period more than 5 years
---------------------- | ---------------------------- | --------------------------------------- | ------------------------------------- | ------------------------------------- | ----------------------------------------
operating leases       | $ 37899                      | $ 5320                                  | $ 10410                               | $ 9371                                | $ 12798
total                  | $ 37899                      | $ 5320                                  | $ 10410                               | $ 9371                                | $ 12798

the above table does not include orders for goods and services entered into in the normal course of business that are not enforceable or legally binding .
item 7a .
quantitative and qualitative disclosures about market risk .
interest rate sensitivity our exposure to market risk for changes in interest rates relates primarily to our investment portfolio .
the fair market value of fixed rate securities may be adversely impacted by fluctuations in interest rates while income earned on floating rate securities may decline as a result of decreases in interest rates .
under our current policies , we do not use interest rate derivative instruments to manage exposure to interest rate changes .
we attempt to ensure the safety and preservation of our invested principal funds by limiting default risk , market risk and reinvestment risk .
we mitigate default risk by investing in investment grade securities .
we have historically maintained a relatively short average maturity for our investment portfolio , and we believe a hypothetical 100 basis point adverse move in interest rates along the entire interest rate yield curve would not materially affect the fair value of our interest sensitive financial instruments .
foreign currency exchange risk although most of our revenue is realized in u.s .
dollars , some portions of our revenue are realized in foreign currencies .
as a result , our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets .
the functional currencies of our subsidiaries are their respective local currencies .
accordingly , the accounts of these operations are translated from the local currency to the u.s .
dollar using the current exchange rate in effect at the balance sheet date for the balance sheet accounts , and using the average exchange rate during the period for revenue and expense accounts .
the effects of translation are recorded in accumulated other comprehensive income as a separate component of stockholders 2019 equity.


note 12 .
shareholders 2019 equity accumulated other comprehensive loss : accumulated other comprehensive loss included the following components as of december 31: .

( in millions )                                                                                | 2009             | 2008             | 2007
----------------------------------------------------------------------------------------------------------------- | ---------------- | ---------------- | --------------
foreign currency translation                                                                                | $ 281            | $ 68             | $ 331
net unrealized loss on hedges of net investments in non-u.s . subsidiaries                                        | -14 ( 14 )       | -14 ( 14 )       | -15 ( 15 )
net unrealized loss on available-for-sale securities                                                              | -1636 ( 1636 )   | -5205 ( 5205 )   | -678 ( 678 )
net unrealized loss on fair value hedges of available-for-sale securities                                         | -113 ( 113 )     | -242 ( 242 )     | -55 ( 55 )
losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit | -159 ( 159 )     | 2014             | 2014
losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit   | -387 ( 387 )     | 2014             | 2014
minimum pension liability                                                                                | -192 ( 192 )     | -229 ( 229 )     | -146 ( 146 )
net unrealized loss on cash flow hedges                                                                           | -18 ( 18 )       | -28 ( 28 )       | -12 ( 12 )
total                                                                                | $ -2238 ( 2238 ) | $ -5650 ( 5650 ) | $ -575 ( 575 )

the net after-tax unrealized loss on available-for-sale securities of $ 1.64 billion and $ 5.21 billion as of december 31 , 2009 and december 31 , 2008 , respectively , included $ 635 million and $ 1.39 billion , respectively , of net after-tax unrealized losses related to securities reclassified from securities available for sale to securities held to maturity .
the decrease in the losses related to transfers compared to december 31 , 2008 resulted from amortization and from the recognition of losses from other-than-temporary impairment on certain of the securities .
additional information is provided in note 3 .
for the year ended december 31 , 2009 , we realized net gains of $ 368 million from sales of available-for-sale securities .
unrealized pre-tax gains of $ 46 million were included in other comprehensive income at december 31 , 2008 , net of deferred taxes of $ 18 million , related to these sales .
for the year ended december 31 , 2008 , we realized net gains of $ 68 million from sales of available-for-sale securities .
unrealized pre-tax gains of $ 71 million were included in other comprehensive income at december 31 , 2007 , net of deferred taxes of $ 28 million , related to these sales .
for the year ended december 31 , 2007 , we realized net gains of $ 7 million on sales of available-for-sale securities .
unrealized pre-tax losses of $ 32 million were included in other comprehensive income at december 31 , 2006 , net of deferred taxes of $ 13 million , related to these sales .
preferred stock : in october 2008 , in connection with the u.s .
treasury 2019s capital purchase program , we issued 20000 shares of our series b fixed-rate cumulative perpetual preferred stock , $ 100000 liquidation preference per share , and a warrant to purchase 5576208 shares of our common stock at an exercise price of $ 53.80 per share , to treasury , and received aggregate proceeds of $ 2 billion .
the aggregate proceeds were allocated to the preferred stock and the warrant based on their relative fair values on the date of issuance .
as a result , approximately $ 1.88 billion and $ 121 million , respectively , were allocated to the preferred stock and the warrant .
the difference between the initial value of $ 1.88 billion allocated to the preferred stock and the liquidation amount of $ 2 billion was intended to be charged to retained earnings and credited to the preferred stock over the period that the preferred stock was outstanding , using the effective yield method .
for 2008 and 2009 , these charges to retained earnings reduced net income available to common shareholders by $ 4 million and $ 11 million , respectively , and reduced basic and diluted earnings per common share for those periods .
these calculations are presented in note 22 .
the preferred shares qualified as tier 1 regulatory capital , and paid cumulative quarterly dividends at a rate of 5% ( 5 % ) per year .
for 2008 and 2009 , the accrual of dividends on the preferred shares reduced net income available to common shareholders by $ 18 million and $ 46 million , respectively , and reduced basic and diluted earnings per common share for those periods .
these calculations are presented in note 22 .
the warrant was immediately