of exiting a business in japan , economic weakness in asia and political unrest in thailand , partially offset by growth in new zealand and certain emerging markets .
reinsurance commissions , fees and other revenue increased 48% ( 48 % ) , due mainly to the benfield merger , partially offset by unfavorable foreign currency translation .
organic revenue is even with 2008 , as growth in domestic treaty business and slightly higher pricing was offset by greater client retention , and declines in investment banking and facultative placements .
operating income operating income increased $ 54 million or 6% ( 6 % ) from 2008 to $ 900 million in 2009 .
in 2009 , operating income margins in this segment were 14.3% ( 14.3 % ) , up 60 basis points from 13.7% ( 13.7 % ) in 2008 .
contributing to increased operating income and margins were the merger with benfield , lower e&o costs due to insurance recoveries , a pension curtailment gain of $ 54 million in 2009 versus a curtailment loss of $ 6 million in 2008 , declines in anti-corruption and compliance initiative costs of $ 35 million , restructuring savings , and other cost savings initiatives .
these items were partially offset by an increase of $ 140 million in restructuring costs , $ 95 million of lower fiduciary investment income , benfield integration costs and higher amortization of intangible assets obtained in the merger , and unfavorable foreign currency translation .
consulting .

years ended december 31,        | 2009             | 2008             | 2007
------------------------------- | ---------------- | ---------------- | ----------------
segment revenue                 | $ 1267           | $ 1356           | $ 1345
segment operating income        | 203              | 208              | 180
segment operating income margin | 16.0% ( 16.0 % ) | 15.3% ( 15.3 % ) | 13.4% ( 13.4 % )

our consulting segment generated 17% ( 17 % ) of our consolidated total revenues in 2009 and provides a broad range of human capital consulting services , as follows : consulting services : 1 .
health and benefits advises clients about how to structure , fund , and administer employee benefit programs that attract , retain , and motivate employees .
benefits consulting include health and welfare , executive benefits , workforce strategies and productivity , absence management , benefits administration , data-driven health , compliance , employee commitment , investment advisory and elective benefits services .
2 .
retirement specializes in global actuarial services , defined contribution consulting , investment consulting , tax and erisa consulting , and pension administration .
3 .
compensation focuses on compensatory advisory/counsel including : compensation planning design , executive reward strategies , salary survey and benchmarking , market share studies and sales force effectiveness , with special expertise in the financial services and technology industries .
4 .
strategic human capital delivers advice to complex global organizations on talent , change and organizational effectiveness issues , including talent strategy and acquisition , executive on-boarding , performance management , leadership assessment and development , communication strategy , workforce training and change management .
outsourcing offers employment processing , performance improvement , benefits administration and other employment-related services .
beginning in late 2008 and continuing throughout 2009 , the disruption in the global credit markets and the deterioration of the financial markets has created significant uncertainty in the marketplace .
the prolonged economic downturn is adversely impacting our clients 2019 financial condition and the levels of business activities in the industries and geographies where we operate .
while we believe that the majority of our practices are well positioned to manage through this time , these challenges are reducing demand for some of our services and depressing the price of those services , which is having an adverse effect on our new business and results of operations.


fiscal 2004 acquisitions in february 2004 , the company completed the acquisition of all the outstanding shares of accelerant networks , inc .
( accelerant ) for total consideration of $ 23.8 million , and the acquisition of the technology assets of analog design automation , inc .
( ada ) for total consideration of $ 12.2 million .
the company acquired accelerant in order to enhance the company 2019s standards-based ip solutions .
the company acquired the assets of ada in order to enhance the company 2019s analog and mixed signal offerings .
in october 2004 , the company completed the acquisition of cascade semiconductor solutions , inc .
( cascade ) for total upfront consideration of $ 15.8 million and contingent consideration of up to $ 10.0 million to be paid upon the achievement of certain performance milestones over the three years following the acquisition .
contingent consideration totaling $ 2.1 million was paid during the fourth quarter of fiscal 2005 and has been allocated to goodwill .
the company acquired cascade , an ip provider , in order to augment synopsys 2019 offerings of pci express products .
included in the total consideration for the accelerant and cascade acquisitions are aggregate acquisition costs of $ 4.3 million , consisting primarily of legal and accounting fees and other directly related charges .
as of october 31 , 2006 the company has paid substantially all the costs related to these acquisitions .
in fiscal 2004 , the company completed one additional acquisition and two additional asset acquisition transactions for aggregate consideration of $ 12.3 million in upfront payments and acquisition-related costs .
in process research and development expenses associated with these acquisitions totaled $ 1.6 million for fiscal 2004 .
these acquisitions are not considered material , individually or in the aggregate , to the company 2019s consolidated balance sheet and results of operations .
as of october 31 , 2006 , the company has paid substantially all the costs related to these acquisitions .
the company allocated the total aggregate purchase consideration for these transactions to the assets and liabilities acquired , including identifiable intangible assets , based on their respective fair values at the acquisition dates , resulting in aggregate goodwill of $ 24.5 million .
aggregate identifiable intangible assets as a result of these acquisitions , consisting primarily of purchased technology and other intangibles , are $ 44.8 million , and are being amortized over three to five years .
the company includes the amortization of purchased technology in cost of revenue in its statements of operations .
note 4 .
goodwill and intangible assets goodwill consists of the following: .

                           | ( in thousands )
-------------------------- | ----------------
balance at october 31 2004 | $ 593706
additions ( 1 )            | 169142
other adjustments ( 2 )    | -33869 ( 33869 )
balance at october 31 2005 | $ 728979
additions ( 3 )            | 27745
other adjustments ( 4 )    | -21081 ( 21081 )
balance at october 31 2006 | $ 735643

( 1 ) during fiscal year 2005 , additions represent goodwill acquired in acquisitions of ise and nassda of $ 72.9 million and $ 92.4 million , respectively , and contingent consideration earned and paid of $ 1.7 million and $ 2.1 million related to an immaterial acquisition and the acquisition of cascade , respectively .
( 2 ) during fiscal year 2005 , synopsys reduced goodwill primarily related to tax reserves for avant! no longer probable due to expiration of the federal statute of limitations for claims.


management 2019s discussion and analysis of financial condition and results of operations state street corporation | 90 table 30 : total deposits average balance december 31 years ended december 31 .

( in millions ) | december 31 2017 | december 31 2016 | december 31 2017 | 2016
--------------- | ---------------- | ---------------- | ---------------- | --------
client deposits | $ 180149         | $ 176693         | $ 158996         | $ 156029
wholesale cds   | 4747             | 10470            | 4812             | 14456
total deposits  | $ 184896         | $ 187163         | $ 163808         | $ 170485

short-term funding our on-balance sheet liquid assets are also an integral component of our liquidity management strategy .
these assets provide liquidity through maturities of the assets , but more importantly , they provide us with the ability to raise funds by pledging the securities as collateral for borrowings or through outright sales .
in addition , our access to the global capital markets gives us the ability to source incremental funding at reasonable rates of interest from wholesale investors .
as discussed earlier under 201casset liquidity , 201d state street bank's membership in the fhlb allows for advances of liquidity with varying terms against high-quality collateral .
short-term secured funding also comes in the form of securities lent or sold under agreements to repurchase .
these transactions are short-term in nature , generally overnight , and are collateralized by high-quality investment securities .
these balances were $ 2.84 billion and $ 4.40 billion as of december 31 , 2017 and december 31 , 2016 , respectively .
state street bank currently maintains a line of credit with a financial institution of cad 1.40 billion , or approximately $ 1.11 billion as of december 31 , 2017 , to support its canadian securities processing operations .
the line of credit has no stated termination date and is cancelable by either party with prior notice .
as of december 31 , 2017 , there was no balance outstanding on this line of credit .
long-term funding we have the ability to issue debt and equity securities under our current universal shelf registration to meet current commitments and business needs , including accommodating the transaction and cash management needs of our clients .
in addition , state street bank , a wholly owned subsidiary of the parent company , also has authorization to issue up to $ 5 billion in unsecured senior debt and an additional $ 500 million of subordinated debt .
agency credit ratings our ability to maintain consistent access to liquidity is fostered by the maintenance of high investment-grade ratings as measured by the major independent credit rating agencies .
factors essential to maintaining high credit ratings include : 2022 diverse and stable core earnings ; 2022 relative market position ; 2022 strong risk management ; 2022 strong capital ratios ; 2022 diverse liquidity sources , including the global capital markets and client deposits ; 2022 strong liquidity monitoring procedures ; and 2022 preparedness for current or future regulatory developments .
high ratings limit borrowing costs and enhance our liquidity by : 2022 providing assurance for unsecured funding and depositors ; 2022 increasing the potential market for our debt and improving our ability to offer products ; 2022 serving markets ; and 2022 engaging in transactions in which clients value high credit ratings .
a downgrade or reduction of our credit ratings could have a material adverse effect on our liquidity by restricting our ability to access the capital markets , which could increase the related cost of funds .
in turn , this could cause the sudden and large-scale withdrawal of unsecured deposits by our clients , which could lead to draw-downs of unfunded commitments to extend credit or trigger requirements under securities purchase commitments ; or require additional collateral or force terminations of certain trading derivative contracts .
a majority of our derivative contracts have been entered into under bilateral agreements with counterparties who may require us to post collateral or terminate the transactions based on changes in our credit ratings .
we assess the impact of these arrangements by determining the collateral that would be required assuming a downgrade by all rating agencies .
the additional collateral or termination payments related to our net derivative liabilities under these arrangements that could have been called by counterparties in the event of a downgrade in our credit ratings below levels specified in the agreements is disclosed in note 10 to the consolidated financial statements included under item 8 , financial statements and supplementary data , of this form 10-k .
other funding sources , such as secured financing transactions and other margin requirements , for which there are no explicit triggers , could also be adversely affected.


cash and a commitment to fund the capital needs of the business until such time as its cumulative funding is equal to funding that we have provided from inception through the effective date of the transaction .
the transaction created a new joint venture which does business as comercia global payments brazil .
as a result of the transaction , we deconsolidated global payments brazil , and we apply the equity method of accounting to our retained interest in comercia global payments brazil .
we recorded a gain on the transaction of $ 2.1 million which is included in interest and other income in the consolidated statement of income for the fiscal year ended may 31 , 2014 .
the results of the brazil operation from inception until the restructuring into a joint venture on september 30 , 2013 were not material to our consolidated results of operations , and the assets and liabilities that we derecognized were not material to our consolidated balance sheet .
american express portfolio on october 24 , 2013 , we acquired a merchant portfolio in the czech republic from american express limited for $ 1.9 million .
the acquired assets have been classified as customer-related intangible assets and contract-based intangible assets with estimated amortization periods of 10 years .
paypros on march 4 , 2014 , we completed the acquisition of 100% ( 100 % ) of the outstanding stock of payment processing , inc .
( 201cpaypros 201d ) for $ 420.0 million in cash plus $ 7.7 million in cash for working capital , subject to adjustment based on a final determination of working capital .
we funded the acquisition with a combination of cash on hand and proceeds from our new term loan .
paypros , based in california , is a provider of fully-integrated payment solutions for small-to-medium sized merchants in the united states .
paypros delivers its products and services through a network of technology-based enterprise software partners to vertical markets that are complementary to the markets served by accelerated payment technologies ( 201capt 201d ) , which we acquired in october 2012 .
we acquired paypros to expand our direct distribution capabilities in the united states and to further enhance our existing integrated solutions offerings .
this acquisition was recorded as a business combination , and the purchase price was allocated to the assets acquired and liabilities assumed based on their estimated fair values .
due to the timing of this transaction , the allocation of the purchase price is preliminary pending final valuation of intangible assets and deferred income taxes as well as resolution of the working capital settlement discussed above .
the purchase price of paypros was determined by analyzing the historical and prospective financial statements .
acquisition costs associated with this purchase were not material .
the following table summarizes the preliminary purchase price allocation ( in thousands ) : .

goodwill                           | $ 271577
---------------------------------- | ----------------
customer-related intangible assets | 147500
contract-based intangible assets   | 31000
acquired technology                | 10700
fixed assets                       | 1680
other assets                       | 4230
total assets acquired              | 466687
deferred income taxes              | -38949 ( 38949 )
net assets acquired                | $ 427738

the preliminary purchase price allocation resulted in goodwill , included in the north america merchant services segment , of $ 271.6 million .
such goodwill is attributable primarily to synergies with the services offered and markets served by paypros .
the goodwill associated with the acquisition is not deductible for tax purposes .
the customer-related intangible assets and the contract-based intangible assets have an estimated amortization period of 13 years .
the acquired technology has an estimated amortization period of 7 years.


shareholder return performance the line graph below compares the annual percentage change in ball corporation fffds cumulative total shareholder return on its common stock with the cumulative total return of the dow jones containers & packaging index and the s&p composite 500 stock index for the five-year period ended december 31 , 2011 .
it assumes $ 100 was invested on december 31 , 2006 , and that all dividends were reinvested .
the dow jones containers & packaging index total return has been weighted by market capitalization .
total return to stockholders ( assumes $ 100 investment on 12/31/06 ) total return analysis .

                             | 12/31/2006 | 12/31/2007 | 12/31/2008 | 12/31/2009 | 12/31/2010 | 12/31/2011
---------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
ball corporation             | $ 100.00   | $ 104.05   | $ 97.04    | $ 121.73   | $ 161.39   | $ 170.70
dj us containers & packaging | $ 100.00   | $ 106.73   | $ 66.91    | $ 93.98    | $ 110.23   | $ 110.39
s&p 500                      | $ 100.00   | $ 105.49   | $ 66.46    | $ 84.05    | $ 96.71    | $ 98.75

copyright a9 2012 standard & poor fffds , a division of the mcgraw-hill companies inc .
all rights reserved .
( www.researchdatagroup.com/s&p.htm ) copyright a9 2012 dow jones & company .
all rights reserved.


part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the following table presents reported quarterly high and low per share sale prices of our class a common stock on the new york stock exchange ( nyse ) for the years 2006 and 2005. .

2006                       | high    | low
-------------------------- | ------- | -------
quarter ended march 31     | $ 32.68 | $ 26.66
quarter ended june 30      | 35.75   | 27.35
quarter ended september 30 | 36.92   | 29.98
quarter ended december 31  | 38.74   | 35.21
2005                       | high    | low
quarter ended march 31     | $ 19.28 | $ 17.30
quarter ended june 30      | 21.16   | 16.28
quarter ended september 30 | 25.20   | 20.70
quarter ended december 31  | 28.33   | 22.73

on february 22 , 2007 , the closing price of our class a common stock was $ 40.38 per share as reported on the nyse .
as of february 22 , 2007 , we had 419988395 outstanding shares of class a common stock and 623 registered holders .
in february 2004 , all outstanding shares of our class b common stock were converted into shares of our class a common stock on a one-for-one basis pursuant to the occurrence of the 201cdodge conversion event 201d as defined in our charter .
also in february 2004 , all outstanding shares of class c common stock were converted into shares of class a common stock on a one-for-one basis .
in august 2005 , we amended and restated our charter to , among other things , eliminate our class b common stock and class c common stock .
dividends we have never paid a dividend on any class of our common stock .
we anticipate that we may retain future earnings , if any , to fund the development and growth of our business .
the indentures governing our 7.50% ( 7.50 % ) senior notes due 2012 ( 7.50% ( 7.50 % ) notes ) and our 7.125% ( 7.125 % ) senior notes due 2012 ( 7.125% ( 7.125 % ) notes ) may prohibit us from paying dividends to our stockholders unless we satisfy certain financial covenants .
our credit facilities and the indentures governing the terms of our debt securities contain covenants that may restrict the ability of our subsidiaries from making to us any direct or indirect distribution , dividend or other payment on account of their limited liability company interests , partnership interests , capital stock or other equity interests .
under our credit facilities , the borrower subsidiaries may pay cash dividends or make other distributions to us in accordance with the applicable credit facility only if no default exists or would be created thereby .
the indenture governing the terms of the ati 7.25% ( 7.25 % ) notes prohibit ati and certain of our other subsidiaries that have guaranteed those notes ( sister guarantors ) from paying dividends and making other payments or distributions to us unless certain financial covenants are satisfied .
the indentures governing the terms of our 7.50% ( 7.50 % ) notes and 7.125% ( 7.125 % ) notes also contain certain restrictive covenants , which prohibit the restricted subsidiaries under these indentures from paying dividends and making other payments or distributions to us unless certain financial covenants are satisfied .
for more information about the restrictions under our credit facilities and our notes indentures , see item 7 of this annual report under the caption 201cmanagement 2019s discussion and analysis of financial condition and results of operations 2014liquidity and capital resources 2014factors affecting sources of liquidity 201d and note 7 to our consolidated financial statements included in this annual report.


financial assurance we must provide financial assurance to governmental agencies and a variety of other entities under applicable environmental regulations relating to our landfill operations for capping , closure and post-closure costs , and related to our performance under certain collection , landfill and transfer station contracts .
we satisfy these financial assurance requirements by providing surety bonds , letters of credit , or insurance policies ( financial assurance instruments ) , or trust deposits , which are included in restricted cash and marketable securities and other assets in our consolidated balance sheets .
the amount of the financial assurance requirements for capping , closure and post-closure costs is determined by applicable state environmental regulations .
the financial assurance requirements for capping , closure and post-closure costs may be associated with a portion of the landfill or the entire landfill .
generally , states require a third-party engineering specialist to determine the estimated capping , closure and post-closure costs that are used to determine the required amount of financial assurance for a landfill .
the amount of financial assurance required can , and generally will , differ from the obligation determined and recorded under u.s .
gaap .
the amount of the financial assurance requirements related to contract performance varies by contract .
additionally , we must provide financial assurance for our insurance program and collateral for certain performance obligations .
we do not expect a material increase in financial assurance requirements during 2018 , although the mix of financial assurance instruments may change .
these financial assurance instruments are issued in the normal course of business and are not considered indebtedness .
because we currently have no liability for the financial assurance instruments , they are not reflected in our consolidated balance sheets ; however , we record capping , closure and post-closure liabilities and insurance liabilities as they are incurred .
off-balance sheet arrangements we have no off-balance sheet debt or similar obligations , other than operating leases and financial assurances , which are not classified as debt .
we have no transactions or obligations with related parties that are not disclosed , consolidated into or reflected in our reported financial position or results of operations .
we have not guaranteed any third-party debt .
free cash flow we define free cash flow , which is not a measure determined in accordance with u.s .
gaap , as cash provided by operating activities less purchases of property and equipment , plus proceeds from sales of property and equipment , as presented in our consolidated statements of cash flows .
the following table calculates our free cash flow for the years ended december 31 , 2017 , 2016 and 2015 ( in millions of dollars ) : .

                                              | 2017             | 2016             | 2015
--------------------------------------------- | ---------------- | ---------------- | ----------------
cash provided by operating activities         | $ 1910.7         | $ 1847.8         | $ 1679.7
purchases of property and equipment           | -989.8 ( 989.8 ) | -927.8 ( 927.8 ) | -945.6 ( 945.6 )
proceeds from sales of property and equipment | 6.1              | 9.8              | 21.2
free cash flow                                | $ 927.0          | $ 929.8          | $ 755.3

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


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) operations , net , in the accompanying consolidated statements of operations for the year ended december 31 , 2003 .
( see note 9. ) other transactions 2014in august 2003 , the company consummated the sale of galaxy engineering ( galaxy ) , a radio frequency engineering , network design and tower-related consulting business ( previously included in the company 2019s network development services segment ) .
the purchase price of approximately $ 3.5 million included $ 2.0 million in cash , which the company received at closing , and an additional $ 1.5 million payable on january 15 , 2008 , or at an earlier date based on the future revenues of galaxy .
the company received $ 0.5 million of this amount in january 2005 .
pursuant to this transaction , the company recorded a net loss on disposal of approximately $ 2.4 million in the accompanying consolidated statement of operations for the year ended december 31 , 2003 .
in may 2003 , the company consummated the sale of an office building in westwood , massachusetts ( previously held primarily as rental property and included in the company 2019s rental and management segment ) for a purchase price of approximately $ 18.5 million , including $ 2.4 million of cash proceeds and the buyer 2019s assumption of $ 16.1 million of related mortgage notes .
pursuant to this transaction , the company recorded a net loss on disposal of approximately $ 3.6 million in the accompanying consolidated statement of operations for the year ended december 31 , 2003 .
in january 2003 , the company consummated the sale of flash technologies , its remaining components business ( previously included in the company 2019s network development services segment ) for approximately $ 35.5 million in cash and has recorded a net gain on disposal of approximately $ 0.1 million in the accompanying consolidated statement of operations for the year ended december 31 , 2003 .
in march 2003 , the company consummated the sale of an office building in schaumburg , illinois ( previously held primarily as rental property and included in the company 2019s rental and management segment ) for net proceeds of approximately $ 10.3 million in cash and recorded a net loss on disposal of $ 0.1 million in the accompanying consolidated statement of operations for the year ended december 31 , 2003 .
4 .
property and equipment property and equipment ( including assets held under capital leases ) consist of the following as of december 31 , ( in thousands ) : .

                                               | 2005                 | 2004
---------------------------------------------- | -------------------- | ------------------
towers                                         | $ 4134155            | $ 2788162
equipment                                      | 167504               | 115244
buildings and improvements                     | 184951               | 162120
land and improvements                          | 215974               | 176937
construction-in-progress                       | 36991                | 27866
total                                          | 4739575              | 3270329
less accumulated depreciation and amortization | -1279049 ( 1279049 ) | -996973 ( 996973 )
property and equipment net                     | $ 3460526            | $ 2273356

5 .
goodwill and other intangible assets the company 2019s net carrying amount of goodwill was approximately $ 2.1 billion as of december 312005 and $ 592.7 million as of december 31 , 2004 , all of which related to its rental and management segment .
the increase in the carrying value was as a result of the goodwill of $ 1.5 billion acquired in the merger with spectrasite , inc .
( see note 2. )


( 1 ) adjusted other income ( expense ) excludes pension settlement charges of $ 37 million , $ 128 million , and $ 220 million , for the years ended 2018 , 2017 , and 2016 , respectively .
( 2 ) adjusted items are generally taxed at the estimated annual effective tax rate , except for the applicable tax impact associated with estimated restructuring plan expenses , legacy litigation , accelerated tradename amortization , impairment charges and non-cash pension settlement charges , which are adjusted at the related jurisdictional rates .
in addition , tax expense excludes the tax impacts from the sale of certain assets and liabilities previously classified as held for sale as well as the tax adjustments recorded to finalize the 2017 accounting for the enactment date impact of the tax reform act recorded pursuant torr sab 118 .
( 3 ) adjusted net income from discontinued operations excludes the gain on sale of discontinued operations of $ 82 million , $ 779 million , and $ 0 million for the years ended 2018 , 2017 , and 2016 , respectively .
adjusted net income from discontinued operations excludes intangible asset amortization of $ 0 million , $ 11rr million , and $ 120 million for the twelve months ended december 31 , 2018 , 2017 , and 2016 , respectively .
the effective tax rate was further adjusted for the applicable tax impact associated with the gain on sale and intangible asset amortization , as applicable .
free cash flow we use free cash flow , defined as cash flow provided by operations minus capital expenditures , as a non-gaap measure of our core operating performance and cash generating capabilities of our business operations .
this supplemental information related to free cash flow represents a measure not in accordance with u.s .
gaap and should be viewed in addition to , not instead of , our financial statements .
the use of this non-gaap measure does not imply or represent the residual cash flow for discretionary expenditures .
a reconciliation of this non-gaap measure to cash flow provided by operations is as follows ( in millions ) : .

years ended december 31                             | 2018         | 2017         | 2016
--------------------------------------------------- | ------------ | ------------ | ------------
cash provided by continuing operating activities    | $ 1686       | $ 669        | $ 1829
capital expenditures used for continuing operations | -240 ( 240 ) | -183 ( 183 ) | -156 ( 156 )
free cash flow provided by continuing operations    | $ 1446       | $ 486        | $ 1673

impact of foreign currency exchange rate fluctuations we conduct business in more than 120 countries and sovereignties and , because of this , foreign currency exchange rate fluctuations have a significant impact on our business .
foreign currency exchange rate movements may be significant and may distort true period-to-period comparisons of changes in revenue or pretax income .
therefore , to give financial statement users meaningful information about our operations , we have provided an illustration of the impact of foreign currency exchange rate fluctuations on our financial results .
the methodology used to calculate this impact isolates the impact of the change in currencies between periods by translating the prior year 2019s revenue , expenses , and net income using the current year 2019s foreign currency exchange rates .
translating prior year results at current year foreign currency exchange rates , currency fluctuations had a $ 0.08 favorable impact on net income per diluted share during the year ended december 31 , 2018 .
currency fluctuations had a $ 0.12 favorable impact on net income per diluted share during the year ended december 31 , 2017 , when 2016 results were translated at 2017 rates .
currency fluctuations had no impact on net income per diluted share during the year ended december 31 , 2016 , when 2015 results were translated at 2016 rates .
translating prior year results at current year foreign currency exchange rates , currency fluctuations had a $ 0.09 favorable impact on adjusted net income per diluted share during the year ended december 31 , 2018 .
currency fluctuations had a $ 0.08 favorable impact on adjusted net income per diluted share during the year ended december 31 , 2017 , when 2016 results were translated at 2017 rates .
currency fluctuations had a $ 0.04 unfavorable impact on adjusted net income per diluted share during the year ended december 31 , 2016 , when 2015 results were translated at 2016 rates .
these translations are performed for comparative purposes only and do not impact the accounting policies or practices for amounts included in the financial statements .
competition and markets authority the u.k . 2019s competition regulator , the competition and markets authority ( the 201ccma 201d ) , conducted a market investigation into the supply and acquisition of investment consulting and fiduciary management services , including those offered by aon and its competitors in the u.k. , to assess whether any feature or combination of features in the target market prevents , restricts , or distorts competition .
the cma issued a final report on december 12 , 2018 .
the cma will draft a series of orders that will set out the detailed remedies , expected in first quarter of 2019 , when they will be subject to further public consultation .
we do not anticipate the remedies to have a significant impact on the company 2019s consolidated financial position or business .
financial conduct authority the fca is conducting a market study to assess how effectively competition is working in the wholesale insurance broker sector in the u.k .
in which aon , through its subsidiaries , participates .
the fca has indicated that the purpose of a market study is to assess the extent to which the market is working well in the interests of customers and to identify features of the market that may impact competition .
depending on the study 2019s findings , the fca may require remedies in order to correct any features found


24 2017 annual report performance graph the following chart presents a comparison for the five-year period ended june 30 , 2017 , of the market performance of the company 2019s common stock with the s&p 500 index and an index of peer companies selected by the company : comparison of 5 year cumulative total return among jack henry & associates , inc. , the s&p 500 index , and a peer group the following information depicts a line graph with the following values: .

           | 2012   | 2013   | 2014   | 2015   | 2016   | 2017
---------- | ------ | ------ | ------ | ------ | ------ | ------
jkhy       | 100.00 | 138.34 | 177.10 | 195.72 | 267.64 | 322.60
peer group | 100.00 | 117.87 | 161.90 | 203.87 | 233.39 | 271.10
s&p 500    | 100.00 | 120.60 | 150.27 | 161.43 | 167.87 | 197.92

this comparison assumes $ 100 was invested on june 30 , 2012 , and assumes reinvestments of dividends .
total returns are calculated according to market capitalization of peer group members at the beginning of each period .
peer companies selected are in the business of providing specialized computer software , hardware and related services to financial institutions and other businesses .
companies in the peer group are aci worldwide , inc. ; bottomline technology , inc. ; broadridge financial solutions ; cardtronics , inc. ; convergys corp. ; corelogic , inc. ; dst systems , inc. ; euronet worldwide , inc. ; fair isaac corp. ; fidelity national information services , inc. ; fiserv , inc. ; global payments , inc. ; moneygram international , inc. ; ss&c technologies holdings , inc. ; total systems services , inc. ; tyler technologies , inc. ; verifone systems , inc. ; and wex , inc..


part ii item 5 .
market for registrant 2019s common equity , related stockholder matters , and issuer purchases of equity securities our common stock is listed on the new york stock exchange under the symbol "apd." as of 31 october 2019 , there were 5166 record holders of our common stock .
cash dividends on the company 2019s common stock are paid quarterly .
it is our expectation that we will continue to pay cash dividends in the future at comparable or increased levels .
the board of directors determines whether to declare dividends and the timing and amount based on financial condition and other factors it deems relevant .
dividend information for each quarter of fiscal years 2019 and 2018 is summarized below: .

               | 2019   | 2018
-------------- | ------ | ------
first quarter  | $ 1.10 | $ .95
second quarter | 1.16   | 1.10
third quarter  | 1.16   | 1.10
fourth quarter | 1.16   | 1.10
total          | $ 4.58 | $ 4.25

purchases of equity securities by the issuer on 15 september 2011 , the board of directors authorized the repurchase of up to $ 1.0 billion of our outstanding common stock .
this program does not have a stated expiration date .
we repurchase shares pursuant to rules 10b5-1 and 10b-18 under the securities exchange act of 1934 , as amended , through repurchase agreements established with one or more brokers .
there were no purchases of stock during fiscal year 2019 .
at 30 september 2019 , $ 485.3 million in share repurchase authorization remained .
additional purchases will be completed at the company 2019s discretion while maintaining sufficient funds for investing in its businesses and growth opportunities.


l iquidity and capital resources we have historically generated positive cash flow from operations and have generally used funds generated from operations and short-term borrowings on our revolving credit facility to meet capital requirements .
we expect this trend to continue in the future .
the company's cash and cash equivalents decreased to $ 65565 at june 30 , 2008 from $ 88617 at june 30 , 2007 .
the following table summarizes net cash from operating activities in the statement of cash flows : year ended june 30 cash provided by operations increased $ 6754 to $ 181001 for the fiscal year ended june 30 , 2008 as compared to $ 174247 for the fiscal year ended june 30 , 2007 .
this increase is primarily attributable to an increase in expenses that do not have a corresponding cash outflow , such as depreciation and amortization , as a percentage of total net income .
cash used in investing activities for the fiscal year ended june 2008 was $ 102148 and includes payments for acquisitions of $ 48109 , plus $ 1215 in contingent consideration paid on prior years 2019 acquisitions .
during fiscal 2007 , payments for acquisitions totaled $ 34006 , plus $ 5301 paid on earn-outs and other acquisition adjustments .
capital expenditures for fiscal 2008 were $ 31105 compared to $ 34202 for fiscal 2007 .
cash used for software development in fiscal 2008 was $ 23736 compared to $ 20743 during the prior year .
net cash used in financing activities for the current fiscal year was $ 101905 and includes the repurchase of 4200 shares of our common stock for $ 100996 , the payment of dividends of $ 24683 and $ 429 net repayment on our revolving credit facilities .
cash used in financing activities was partially offset by proceeds of $ 20394 from the exercise of stock options and the sale of common stock and $ 3809 excess tax benefits from stock option exercises .
during fiscal 2007 , net cash used in financing activities included the repurchase of our common stock for $ 98413 and the payment of dividends of $ 21685 .
as in the current year , cash used in fiscal 2007 was partially offset by proceeds from the exercise of stock options and the sale of common stock of $ 29212 , $ 4640 excess tax benefits from stock option exercises and $ 19388 net borrowings on revolving credit facilities .
at june 30 , 2008 , the company had negative working capital of $ 11418 ; however , the largest component of current liabilities was deferred revenue of $ 212375 .
the cash outlay necessary to provide the services related to these deferred revenues is significantly less than this recorded balance .
therefore , we do not anticipate any liquidity problems to result from this condition .
u.s .
financial markets and many of the largest u.s .
financial institutions have recently been shaken by negative developments in the home mortgage industry and the mortgage markets , and particularly the markets for subprime mortgage-backed securities .
while we believe it is too early to predict what effect , if any , these developments may have , we have not experienced any significant issues with our current collec- tion efforts , and we believe that any future impact to our liquidity would be minimized by our access to available lines of credit .
2008 2007 2006 .

2007                                   | year ended june 30 2008 2007 | year ended june 30 2008 2007 | year ended june 30 2008
-------------------------------------- | ---------------------------- | ---------------------------- | -----------------------
net income                             | $ 104222                     | $ 104681                     | $ 89923
non-cash expenses                      | 70420                        | 56348                        | 52788
change in receivables                  | -2913 ( 2913 )               | -28853 ( 28853 )             | 30413
change in deferred revenue             | 5100                         | 24576                        | 10561
change in other assets and liabilities | 4172                         | 17495                        | -14247 ( 14247 )
net cash from operating activities     | $ 181001                     | $ 174247                     | $ 169438


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) sfas no .
148 .
in accordance with apb no .
25 , the company recognizes compensation expense based on the excess , if any , of the quoted stock price at the grant date of the award or other measurement date over the amount an employee must pay to acquire the stock .
the company 2019s stock option plans are more fully described in note 14 .
in december 2004 , the fasb issued sfas no .
123 ( revised 2004 ) , 201cshare-based payment 201d ( sfas 123r ) , as further described below .
during the year ended december 31 , 2005 , the company reevaluated the assumptions used to estimate the fair value of stock options issued to employees .
as a result , the company lowered its expected volatility assumption for options granted after july 1 , 2005 to approximately 30% ( 30 % ) and increased the expected life of option grants to 6.25 years using the simplified method permitted by sec sab no .
107 , 201dshare-based payment 201d ( sab no .
107 ) .
the company made this change based on a number of factors , including the company 2019s execution of its strategic plans to sell non-core businesses , reduce leverage and refinance its debt , and its recent merger with spectrasite , inc .
( see note 2. ) management had previously based its volatility assumptions on historical volatility since inception , which included periods when the company 2019s capital structure was more highly leveraged than current levels and expected levels for the foreseeable future .
management 2019s estimate of future volatility is based on its consideration of all available information , including historical volatility , implied volatility of publicly traded options , the company 2019s current capital structure and its publicly announced future business plans .
for comparative purposes , a 10% ( 10 % ) change in the volatility assumption would change pro forma stock option expense and pro forma net loss by approximately $ 0.1 million for the year ended december 31 , 2005 .
( see note 14. ) the following table illustrates the effect on net loss and net loss per common share if the company had applied the fair value recognition provisions of sfas no .
123 ( as amended ) to stock-based compensation .
the estimated fair value of each option is calculated using the black-scholes option-pricing model ( in thousands , except per share amounts ) : .

                                                                                | 2005                 | 2004                 | 2003
--------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | -------------------- | --------------------
net loss as reported                                                                                | $ -171590 ( 171590 ) | $ -247587 ( 247587 ) | $ -325321 ( 325321 )
add : stock-based employee compensation expense net of related tax effect included in net loss as reported                              | 7104                 | 2297                 | 2077
less : total stock-based employee compensation expense determined under fair value based method for all awards net of related taxeffect | -22238 ( 22238 )     | -23906 ( 23906 )     | -31156 ( 31156 )
pro-forma net loss                                                                                | $ -186724 ( 186724 ) | $ -269196 ( 269196 ) | $ -354400 ( 354400 )
basic and diluted net loss per share as reported                                                                                | $ -0.57 ( 0.57 )     | $ -1.10 ( 1.10 )     | $ -1.56 ( 1.56 )
basic and diluted net loss per share pro-forma                                                                                | $ -0.62 ( 0.62 )     | $ -1.20 ( 1.20 )     | $ -1.70 ( 1.70 )

the company has modified certain option awards to revise vesting and exercise terms for certain terminated employees and recognized charges of $ 7.0 million , $ 3.0 million and $ 2.3 million for the years ended december 31 , 2005 , 2004 and 2003 , respectively .
in addition , the stock-based employee compensation amounts above for the year ended december 31 , 2005 , include approximately $ 2.4 million of unearned compensation amortization related to unvested stock options assumed in the merger with spectrasite , inc .
such charges are reflected in impairments , net loss on sale of long-lived assets , restructuring and merger related expense with corresponding adjustments to additional paid-in capital and unearned compensation in the accompanying consolidated financial statements .
recent accounting pronouncements 2014in december 2004 , the fasb issued sfas 123r , which supersedes apb no .
25 , and amends sfas no .
95 , 201cstatement of cash flows . 201d this statement addressed the accounting for share-based payments to employees , including grants of employee stock options .
under the new standard


five-year stock performance graph the graph below illustrates the cumulative total shareholder return on snap-on common stock since december 31 , 2007 , assuming that dividends were reinvested .
the graph compares snap-on 2019s performance to that of the standard & poor 2019s 500 stock index ( 201cs&p 500 201d ) and a peer group .
snap-on incorporated total shareholder return ( 1 ) fiscal year ended ( 2 ) snap-on incorporated peer group ( 3 ) s&p 500 .

fiscal year ended ( 2 ) | snap-onincorporated | peer group ( 3 ) | s&p 500
----------------------- | ------------------- | ---------------- | --------
december 31 2007        | $ 100.00            | $ 100.00         | $ 100.00
december 31 2008        | 83.66               | 66.15            | 63.00
december 31 2009        | 93.20               | 84.12            | 79.67
december 31 2010        | 128.21              | 112.02           | 91.67
december 31 2011        | 117.47              | 109.70           | 93.61
december 31 2012        | 187.26              | 129.00           | 108.59

( 1 ) assumes $ 100 was invested on december 31 , 2007 , and that dividends were reinvested quarterly .
( 2 ) the company's fiscal year ends on the saturday that is on or nearest to december 31 of each year ; for ease of calculation , the fiscal year end is assumed to be december 31 .
( 3 ) the peer group consists of : stanley black & decker , inc. , danaher corporation , emerson electric co. , genuine parts company , newell rubbermaid inc. , pentair ltd. , spx corporation and w.w .
grainger , inc .
cooper industries plc , a former member of the peer group , was removed , as it was acquired by a larger , non-comparable company in 2012 .
2012 annual report 23 snap-on incorporated peer group s&p 500 2007 2008 201120102009 2012


hologic , inc .
notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) the acquisition also provides for up to two annual earn out payments not to exceed $ 15000 in the aggregate based on biolucent 2019s achievement of certain revenue targets .
the company has considered the provision of eitf issue no .
95-8 , accounting for contingent consideration paid to the shareholders of and acquired enterprise in a purchase business combination , and concluded that this contingent consideration will represent additional purchase price .
as a result , goodwill will be increased by the amount of the additional consideration , if any , when it becomes due and payable .
the allocation of the purchase price is based upon preliminary estimates of the fair value of assets acquired and liabilities assumed as of september 18 , 2007 .
the company is in the process of gathering information to finalize its valuation of certain assets and liabilities .
the purchase price allocation will be finalized once the company has all necessary information to complete its estimate , but generally no later than one year from the date of acquisition .
the components and initial allocation of the purchase price , consists of the following approximate amounts: .

net tangible assets acquired as of september 18 2007 | $ 2800
---------------------------------------------------- | --------------
developed technology and know how                    | 12300
customer relationship                                | 17000
trade name                                           | 2800
deferred income tax liabilities net                  | -9500 ( 9500 )
goodwill                                             | 47800
estimated purchase price                             | $ 73200

as part of the purchase price allocation , all intangible assets that were a part of the acquisition were identified and valued .
it was determined that only customer relationship , trade name and developed technology and know how had separately identifiable values .
the fair value of these intangible assets was determined through the application of the income approach .
customer relationship represents a large customer base that are expected to purchase this disposable product on a regular basis .
trade name represents the biolucent product names that the company intends to continue to use .
developed technology and know how represents currently marketable purchased products that the company continues to sell as well as utilize to enhance and incorporate into the company 2019s existing products .
the deferred income tax liability relates to the tax effect of acquired identifiable intangible assets , and fair value adjustments to acquired inventory as such amounts are not deductible for tax purposes partially offset by acquired net operating loss carryforwards of approximately $ 2400 .
fiscal 2006 acquisitions : on may 2 , 2006 , the company acquired 100% ( 100 % ) of the outstanding voting stock of aeg elektrofotografie gmbh and its group of related companies ( aeg ) .
the results of operations for aeg have been included in the company 2019s consolidated financial statements from the date of acquisition as part of its other business segment .
the company has concluded that the acquisition of aeg does not represent a material business combination and therefore no pro forma financial information has been provided herein .
aeg specializes in the manufacture of photoconductor materials for use in a variety of electro photographic applications including for the coating of the company 2019s digital detectors .
the acquisition of aeg allows the company to have control over a critical step in its detector manufacturing process 2014to more efficiently manage


accounts receivable , net october 31 , 2006 october 31 , 2005 dollar change change .

october 31 2006         | october 31 2005         | dollar change | % (  % ) change
----------------------- | ----------------------- | ------------- | ---------------
( dollars in millions ) | ( dollars in millions ) |               |
$ 122.6                 | $ 100.2                 | $ 22.4        | 22% ( 22 % )

the increase in accounts receivable was primarily due to the increased billings during the fiscal year ended october 31 , 2006 .
days sales outstanding ( dso ) was 39 days at october 31 , 2006 and 36 days at october 31 , 2005 .
our accounts receivable and dso are primarily driven by our billing and collections activities .
net working capital working capital is comprised of current assets less current liabilities , as shown on our balance sheet .
as of october 31 , 2006 , our working capital was $ 23.4 million , compared to $ 130.6 million as of october 31 , 2005 .
the decrease in net working capital of $ 107.2 million was primarily due to ( 1 ) a decrease of $ 73.7 million in cash and cash equivalents ; ( 2 ) a decrease of current deferred tax assets of $ 83.2 million , primarily due to a tax accounting method change ; ( 3 ) a decrease in income taxes receivable of $ 5.8 million ; ( 4 ) an increase in income taxes payable of $ 21.5 million ; ( 5 ) an increase in deferred revenue of $ 29.9 million ; and ( 6 ) a net increase of $ 2.8 million in accounts payable and other liabilities which included a reclassification of debt of $ 7.5 million from long term to short term debt .
this decrease was partially offset by ( 1 ) an increase in short-term investments of $ 59.9 million ; ( 2 ) an increase in prepaid and other assets of $ 27.4 million , which includes land of $ 23.4 million reclassified from property plant and equipment to asset held for sale within prepaid expense and other assets on our consolidated balance sheet ; and ( 3 ) an increase in accounts receivable of $ 22.4 million .
other commitments 2014revolving credit facility on october 20 , 2006 , we entered into a five-year , $ 300.0 million senior unsecured revolving credit facility providing for loans to synopsys and certain of its foreign subsidiaries .
the facility replaces our previous $ 250.0 million senior unsecured credit facility , which was terminated effective october 20 , 2006 .
the amount of the facility may be increased by up to an additional $ 150.0 million through the fourth year of the facility .
the facility contains financial covenants requiring us to maintain a minimum leverage ratio and specified levels of cash , as well as other non-financial covenants .
the facility terminates on october 20 , 2011 .
borrowings under the facility bear interest at the greater of the administrative agent 2019s prime rate or the federal funds rate plus 0.50% ( 0.50 % ) ; however , we have the option to pay interest based on the outstanding amount at eurodollar rates plus a spread between 0.50% ( 0.50 % ) and 0.70% ( 0.70 % ) based on a pricing grid tied to a financial covenant .
in addition , commitment fees are payable on the facility at rates between 0.125% ( 0.125 % ) and 0.175% ( 0.175 % ) per year based on a pricing grid tied to a financial covenant .
as of october 31 , 2006 we had no outstanding borrowings under this credit facility and were in compliance with all the covenants .
we believe that our current cash , cash equivalents , short-term investments , cash generated from operations , and available credit under our credit facility will satisfy our business requirements for at least the next twelve months.


jpmorgan chase & co./2014 annual report 291 therefore , are not recorded on the consolidated balance sheets until settlement date .
the unsettled reverse repurchase agreements and securities borrowing agreements predominantly consist of agreements with regular-way settlement periods .
loan sales- and securitization-related indemnifications mortgage repurchase liability in connection with the firm 2019s mortgage loan sale and securitization activities with the gses , as described in note 16 , the firm has made representations and warranties that the loans sold meet certain requirements .
the firm has been , and may be , required to repurchase loans and/or indemnify the gses ( e.g. , with 201cmake-whole 201d payments to reimburse the gses for their realized losses on liquidated loans ) .
to the extent that repurchase demands that are received relate to loans that the firm purchased from third parties that remain viable , the firm typically will have the right to seek a recovery of related repurchase losses from the third party .
generally , the maximum amount of future payments the firm would be required to make for breaches of these representations and warranties would be equal to the unpaid principal balance of such loans that are deemed to have defects that were sold to purchasers ( including securitization-related spes ) plus , in certain circumstances , accrued interest on such loans and certain expense .
the following table summarizes the change in the mortgage repurchase liability for each of the periods presented .
summary of changes in mortgage repurchase liability ( a ) year ended december 31 , ( in millions ) 2014 2013 2012 repurchase liability at beginning of period $ 681 $ 2811 $ 3557 net realized gains/ ( losses ) ( b ) 53 ( 1561 ) ( 1158 ) .

year ended december 31 ( in millions )      | 2014         | 2013           | 2012
------------------------------------------- | ------------ | -------------- | --------------
repurchase liability at beginning of period | $ 681        | $ 2811         | $ 3557
net realized gains/ ( losses ) ( b )        | 53           | -1561 ( 1561 ) | -1158 ( 1158 )
reclassification to litigation reserve      | 2014         | -179 ( 179 )   | 2014
( benefit ) /provision for repurchase ( c ) | -459 ( 459 ) | -390 ( 390 )   | 412
repurchase liability at end of period       | $ 275        | $ 681          | $ 2811

( benefit ) /provision for repurchase ( c ) ( 459 ) ( 390 ) 412 repurchase liability at end of period $ 275 $ 681 $ 2811 ( a ) on october 25 , 2013 , the firm announced that it had reached a $ 1.1 billion agreement with the fhfa to resolve , other than certain limited types of exposures , outstanding and future mortgage repurchase demands associated with loans sold to the gses from 2000 to 2008 .
( b ) presented net of third-party recoveries and included principal losses and accrued interest on repurchased loans , 201cmake-whole 201d settlements , settlements with claimants , and certain related expense .
make-whole settlements were $ 11 million , $ 414 million and $ 524 million , for the years ended december 31 , 2014 , 2013 and 2012 , respectively .
( c ) included a provision related to new loan sales of $ 4 million , $ 20 million and $ 112 million , for the years ended december 31 , 2014 , 2013 and 2012 , respectively .
private label securitizations the liability related to repurchase demands associated with private label securitizations is separately evaluated by the firm in establishing its litigation reserves .
on november 15 , 2013 , the firm announced that it had reached a $ 4.5 billion agreement with 21 major institutional investors to make a binding offer to the trustees of 330 residential mortgage-backed securities trusts issued by j.p.morgan , chase , and bear stearns ( 201crmbs trust settlement 201d ) to resolve all representation and warranty claims , as well as all servicing claims , on all trusts issued by j.p .
morgan , chase , and bear stearns between 2005 and 2008 .
the seven trustees ( or separate and successor trustees ) for this group of 330 trusts have accepted the rmbs trust settlement for 319 trusts in whole or in part and excluded from the settlement 16 trusts in whole or in part .
the trustees 2019 acceptance is subject to a judicial approval proceeding initiated by the trustees , which is pending in new york state court .
in addition , from 2005 to 2008 , washington mutual made certain loan level representations and warranties in connection with approximately $ 165 billion of residential mortgage loans that were originally sold or deposited into private-label securitizations by washington mutual .
of the $ 165 billion , approximately $ 78 billion has been repaid .
in addition , approximately $ 49 billion of the principal amount of such loans has liquidated with an average loss severity of 59% ( 59 % ) .
accordingly , the remaining outstanding principal balance of these loans as of december 31 , 2014 , was approximately $ 38 billion , of which $ 8 billion was 60 days or more past due .
the firm believes that any repurchase obligations related to these loans remain with the fdic receivership .
for additional information regarding litigation , see note 31 .
loans sold with recourse the firm provides servicing for mortgages and certain commercial lending products on both a recourse and nonrecourse basis .
in nonrecourse servicing , the principal credit risk to the firm is the cost of temporary servicing advances of funds ( i.e. , normal servicing advances ) .
in recourse servicing , the servicer agrees to share credit risk with the owner of the mortgage loans , such as fannie mae or freddie mac or a private investor , insurer or guarantor .
losses on recourse servicing predominantly occur when foreclosure sales proceeds of the property underlying a defaulted loan are less than the sum of the outstanding principal balance , plus accrued interest on the loan and the cost of holding and disposing of the underlying property .
the firm 2019s securitizations are predominantly nonrecourse , thereby effectively transferring the risk of future credit losses to the purchaser of the mortgage-backed securities issued by the trust .
at december 31 , 2014 and 2013 , the unpaid principal balance of loans sold with recourse totaled $ 6.1 billion and $ 7.7 billion , respectively .
the carrying value of the related liability that the firm has recorded , which is representative of the firm 2019s view of the likelihood it


visa inc .
notes to consolidated financial statements 2014 ( continued ) september 30 , 2016 note 16 2014share-based compensation 2007 equity incentive compensation plan the company 2019s 2007 equity incentive compensation plan , or the eip , authorizes the compensation committee of the board of directors to grant non-qualified stock options ( 201coptions 201d ) , restricted stock awards ( 201crsas 201d ) , restricted stock units ( 201crsus 201d ) and performance-based shares to its employees and non-employee directors , for up to 236 million shares of class a common stock .
shares available for award may be either authorized and unissued or previously issued shares subsequently acquired by the company .
the eip will continue to be in effect until all of the common stock available under the eip is delivered and all restrictions on those shares have lapsed , unless the eip is terminated earlier by the company 2019s board of directors .
in january 2016 , the company 2019s board of directors approved an amendment of the eip effective february 3 , 2016 , such that awards may be granted under the plan until january 31 , 2022 .
share-based compensation cost is recorded net of estimated forfeitures on a straight-line basis for awards with service conditions only , and on a graded-vesting basis for awards with service , performance and market conditions .
the company 2019s estimated forfeiture rate is based on an evaluation of historical , actual and trended forfeiture data .
for fiscal 2016 , 2015 and 2014 , the company recorded share-based compensation cost related to the eip of $ 211 million , $ 184 million and $ 172 million , respectively , in personnel on its consolidated statements of operations .
the related tax benefits were $ 62 million , $ 54 million and $ 51 million for fiscal 2016 , 2015 and 2014 , respectively .
the amount of capitalized share-based compensation cost was immaterial during fiscal 2016 , 2015 and all per share amounts and number of shares outstanding presented below reflect the four-for-one stock split that was effected in the second quarter of fiscal 2015 .
see note 14 2014stockholders 2019 equity .
options options issued under the eip expire 10 years from the date of grant and primarily vest ratably over 3 years from the date of grant , subject to earlier vesting in full under certain conditions .
during fiscal 2016 , 2015 and 2014 , the fair value of each stock option was estimated on the date of grant using a black-scholes option pricing model with the following weighted-average assumptions: .

                                 | 2016             | 2015             | 2014
-------------------------------- | ---------------- | ---------------- | ----------------
expected term ( in years ) ( 1 ) | 4.35             | 4.55             | 4.80
risk-free rate of return ( 2 )   | 1.5% ( 1.5 % )   | 1.5% ( 1.5 % )   | 1.3% ( 1.3 % )
expected volatility ( 3 )        | 21.7% ( 21.7 % ) | 22.0% ( 22.0 % ) | 25.2% ( 25.2 % )
expected dividend yield ( 4 )    | 0.7% ( 0.7 % )   | 0.8% ( 0.8 % )   | 0.8% ( 0.8 % )
fair value per option granted    | $ 15.01          | $ 12.04          | $ 11.03

( 1 ) this assumption is based on the company 2019s historical option exercises and those of a set of peer companies that management believes is generally comparable to visa .
the company 2019s data is weighted based on the number of years between the measurement date and visa 2019s initial public offering as a percentage of the options 2019 contractual term .
the relative weighting placed on visa 2019s data and peer data in fiscal 2016 was approximately 77% ( 77 % ) and 23% ( 23 % ) , respectively , 67% ( 67 % ) and 33% ( 33 % ) in fiscal 2015 , respectively , and 58% ( 58 % ) and 42% ( 42 % ) in fiscal 2014 , respectively.


part i item 1 .
business .
general development of business general : altria group , inc .
is a holding company incorporated in the commonwealth of virginia in 1985 .
at december 31 , 2014 , altria group , inc . 2019s wholly-owned subsidiaries included philip morris usa inc .
( 201cpm usa 201d ) , which is engaged predominantly in the manufacture and sale of cigarettes in the united states ; john middleton co .
( 201cmiddleton 201d ) , which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco , and is a wholly- owned subsidiary of pm usa ; and ust llc ( 201cust 201d ) , which through its wholly-owned subsidiaries , including u.s .
smokeless tobacco company llc ( 201cusstc 201d ) and ste .
michelle wine estates ltd .
( 201cste .
michelle 201d ) , is engaged in the manufacture and sale of smokeless tobacco products and wine .
altria group , inc . 2019s other operating companies included nu mark llc ( 201cnu mark 201d ) , a wholly-owned subsidiary that is engaged in the manufacture and sale of innovative tobacco products , and philip morris capital corporation ( 201cpmcc 201d ) , a wholly-owned subsidiary that maintains a portfolio of finance assets , substantially all of which are leveraged leases .
other altria group , inc .
wholly-owned subsidiaries included altria group distribution company , which provides sales , distribution and consumer engagement services to certain altria group , inc .
operating subsidiaries , and altria client services inc. , which provides various support services , such as legal , regulatory , finance , human resources and external affairs , to altria group , inc .
and its subsidiaries .
at december 31 , 2014 , altria group , inc .
also held approximately 27% ( 27 % ) of the economic and voting interest of sabmiller plc ( 201csabmiller 201d ) , which altria group , inc .
accounts for under the equity method of accounting .
source of funds : because altria group , inc .
is a holding company , its access to the operating cash flows of its wholly- owned subsidiaries consists of cash received from the payment of dividends and distributions , and the payment of interest on intercompany loans by its subsidiaries .
at december 31 , 2014 , altria group , inc . 2019s principal wholly-owned subsidiaries were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their equity interests .
in addition , altria group , inc .
receives cash dividends on its interest in sabmiller if and when sabmiller pays such dividends .
financial information about segments altria group , inc . 2019s reportable segments are smokeable products , smokeless products and wine .
the financial services and the innovative tobacco products businesses are included in an all other category due to the continued reduction of the lease portfolio of pmcc and the relative financial contribution of altria group , inc . 2019s innovative tobacco products businesses to altria group , inc . 2019s consolidated results .
altria group , inc . 2019s chief operating decision maker reviews operating companies income to evaluate the performance of , and allocate resources to , the segments .
operating companies income for the segments is defined as operating income before amortization of intangibles and general corporate expenses .
interest and other debt expense , net , and provision for income taxes are centrally managed at the corporate level and , accordingly , such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by altria group , inc . 2019s chief operating decision maker .
net revenues and operating companies income ( together with a reconciliation to earnings before income taxes ) attributable to each such segment for each of the last three years are set forth in note 15 .
segment reporting to the consolidated financial statements in item 8 .
financial statements and supplementary data of this annual report on form 10-k ( 201citem 8 201d ) .
information about total assets by segment is not disclosed because such information is not reported to or used by altria group , inc . 2019s chief operating decision maker .
segment goodwill and other intangible assets , net , are disclosed in note 4 .
goodwill and other intangible assets , net to the consolidated financial statements in item 8 ( 201cnote 4 201d ) .
the accounting policies of the segments are the same as those described in note 2 .
summary of significant accounting policies to the consolidated financial statements in item 8 ( 201cnote 2 201d ) .
the relative percentages of operating companies income ( loss ) attributable to each reportable segment and the all other category were as follows: .

                   | 2014               | 2013               | 2012
------------------ | ------------------ | ------------------ | ------------------
smokeable products | 87.2% ( 87.2 % )   | 84.5% ( 84.5 % )   | 83.7% ( 83.7 % )
smokeless products | 13.4               | 12.2               | 12.5
wine               | 1.7                | 1.4                | 1.4
all other          | -2.3 ( 2.3 )       | 1.9                | 2.4
total              | 100.0% ( 100.0 % ) | 100.0% ( 100.0 % ) | 100.0% ( 100.0 % )

for items affecting the comparability of the relative percentages of operating companies income ( loss ) attributable to each reportable segment , see note 15 .
segment reporting to the consolidated financial statements in item 8 ( 201cnote 15 201d ) .
narrative description of business portions of the information called for by this item are included in item 7 .
management 2019s discussion and analysis of financial condition and results of operations - operating results by business segment of this annual report on form 10-k .
tobacco space altria group , inc . 2019s tobacco operating companies include pm usa , usstc and other subsidiaries of ust , middleton and nu mark .
altria group distribution company provides sales , distribution and consumer engagement services to altria group , inc . 2019s tobacco operating companies .
the products of altria group , inc . 2019s tobacco subsidiaries include smokeable tobacco products comprised of cigarettes manufactured and sold by pm usa and machine-made large altria_mdc_2014form10k_nolinks_crops.pdf 3 2/25/15 5:56 pm


republic services , inc .
notes to consolidated financial statements 2014 ( continued ) the plan to reflect the allied acquisition .
the 2006 plan , as amended and restated , provides for the grant of non- qualified stock options , incentive stock options , shares of restricted stock , shares of phantom stock , stock bonuses , restricted stock units , stock appreciation rights , performance awards , dividend equivalents , cash awards , or other stock-based awards .
awards granted under the 2006 plan prior to december 5 , 2008 became fully vested and nonforfeitable upon the closing of the acquisition .
awards may be granted under the 2006 plan , as amended and restated , after december 5 , 2008 only to employees and consultants of allied and its subsidiaries who were not employed by republic prior to such date .
as of december 31 , 2013 , there were approximately 15.6 million shares of common stock reserved for future grants under the 2006 plan .
stock options we use a lattice binomial option-pricing model to value our stock option grants .
we recognize compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award , or to the employee 2019s retirement eligible date , if earlier .
expected volatility is based on the weighted average of the most recent one year volatility and a historical rolling average volatility of our stock over the expected life of the option .
the risk-free interest rate is based on federal reserve rates in effect for bonds with maturity dates equal to the expected term of the option .
we use historical data to estimate future option exercises , forfeitures ( at 3.0% ( 3.0 % ) for each of the periods presented ) and expected life of the options .
when appropriate , separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes .
the weighted-average estimated fair values of stock options granted during the years ended december 31 , 2013 , 2012 and 2011 were $ 5.27 , $ 4.77 and $ 5.35 per option , respectively , which were calculated using the following weighted-average assumptions: .

                              | 2013             | 2012             | 2011
----------------------------- | ---------------- | ---------------- | ----------------
expected volatility           | 28.9% ( 28.9 % ) | 27.8% ( 27.8 % ) | 27.3% ( 27.3 % )
risk-free interest rate       | 0.7% ( 0.7 % )   | 0.8% ( 0.8 % )   | 1.7% ( 1.7 % )
dividend yield                | 3.2% ( 3.2 % )   | 3.2% ( 3.2 % )   | 2.7% ( 2.7 % )
expected life ( in years )    | 4.5              | 4.5              | 4.4
contractual life ( in years ) | 7.0              | 7.0              | 7.0


as of december 31 , 2014 and 2013 , our liabilities associated with unrecognized tax benefits are not material .
we and our subsidiaries file income tax returns in the u.s .
federal jurisdiction and various foreign jurisdictions .
with few exceptions , the statute of limitations is no longer open for u.s .
federal or non-u.s .
income tax examinations for the years before 2011 , other than with respect to refunds .
u.s .
income taxes and foreign withholding taxes have not been provided on earnings of $ 291 million , $ 222 million and $ 211 million that have not been distributed by our non-u.s .
companies as of december 31 , 2014 , 2013 and 2012 .
our intention is to permanently reinvest these earnings , thereby indefinitely postponing their remittance to the u.s .
if these earnings had been remitted , we estimate that the additional income taxes after foreign tax credits would have been approximately $ 55 million in 2014 , $ 50 million in 2013 and $ 45 million in 2012 .
our federal and foreign income tax payments , net of refunds received , were $ 1.5 billion in 2014 , $ 787 million in 2013 and $ 890 million in 2012 .
our 2014 and 2013 net payments reflect a $ 200 million and $ 550 million refund from the irs primarily attributable to our tax-deductible discretionary pension contributions during the fourth quarters of 2013 and 2012 , and our 2012 net payments reflect a $ 153 million refund from the irs related to a 2011 capital loss carryback .
note 8 2013 debt our long-term debt consisted of the following ( in millions ) : .

                                                                            | 2014         | 2013
--------------------------------------------------------------------------- | ------------ | ------------
notes with rates from 2.13% ( 2.13 % ) to 6.15% ( 6.15 % ) due 2016 to 2042 | $ 5642       | $ 5642
notes with rates from 7.00% ( 7.00 % ) to 7.75% ( 7.75 % ) due 2016 to 2036 | 916          | 916
other debt                                                                  | 483          | 476
total long-term debt                                                        | 7041         | 7034
less : unamortized discounts                                                | -872 ( 872 ) | -882 ( 882 )
total long-term debt net                                                    | $ 6169       | $ 6152

in august 2014 , we entered into a new $ 1.5 billion revolving credit facility with a syndicate of banks and concurrently terminated our existing $ 1.5 billion revolving credit facility which was scheduled to expire in august 2016 .
the new credit facility expires august 2019 and we may request and the banks may grant , at their discretion , an increase to the new credit facility of up to an additional $ 500 million .
the credit facility also includes a sublimit of up to $ 300 million available for the issuance of letters of credit .
there were no borrowings outstanding under the new facility through december 31 , 2014 .
borrowings under the new credit facility would be unsecured and bear interest at rates based , at our option , on a eurodollar rate or a base rate , as defined in the new credit facility .
each bank 2019s obligation to make loans under the credit facility is subject to , among other things , our compliance with various representations , warranties and covenants , including covenants limiting our ability and certain of our subsidiaries 2019 ability to encumber assets and a covenant not to exceed a maximum leverage ratio , as defined in the credit facility .
the leverage ratio covenant excludes the adjustments recognized in stockholders 2019 equity related to postretirement benefit plans .
as of december 31 , 2014 , we were in compliance with all covenants contained in the credit facility , as well as in our debt agreements .
we have agreements in place with financial institutions to provide for the issuance of commercial paper .
there were no commercial paper borrowings outstanding during 2014 or 2013 .
if we were to issue commercial paper , the borrowings would be supported by the credit facility .
in april 2013 , we repaid $ 150 million of long-term notes with a fixed interest rate of 7.38% ( 7.38 % ) due to their scheduled maturities .
during the next five years , we have scheduled long-term debt maturities of $ 952 million due in 2016 and $ 900 million due in 2019 .
interest payments were $ 326 million in 2014 , $ 340 million in 2013 and $ 378 million in 2012 .
all of our existing unsecured and unsubordinated indebtedness rank equally in right of payment .
note 9 2013 postretirement plans defined benefit pension plans and retiree medical and life insurance plans many of our employees are covered by qualified defined benefit pension plans and we provide certain health care and life insurance benefits to eligible retirees ( collectively , postretirement benefit plans ) .
we also sponsor nonqualified defined benefit pension plans to provide for benefits in excess of qualified plan limits .
non-union represented employees hired after december 2005 do not participate in our qualified defined benefit pension plans , but are eligible to participate in a qualified


management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) net cash used in investing activities during 2013 primarily related to payments for capital expenditures and acquisitions .
capital expenditures of $ 173.0 related primarily to computer hardware and software and leasehold improvements .
we made payments of $ 61.5 related to acquisitions completed during 2013 , net of cash acquired .
financing activities net cash used in financing activities during 2014 primarily related to the purchase of long-term debt , the repurchase of our common stock and payment of dividends .
during 2014 , we redeemed all $ 350.0 in aggregate principal amount of the 6.25% ( 6.25 % ) notes , repurchased 14.9 shares of our common stock for an aggregate cost of $ 275.1 , including fees , and made dividend payments of $ 159.0 on our common stock .
this was offset by the issuance of $ 500.0 in aggregate principal amount of our 4.20% ( 4.20 % ) notes .
net cash used in financing activities during 2013 primarily related to the purchase of long-term debt , the repurchase of our common stock and payment of dividends .
we redeemed all $ 600.0 in aggregate principal amount of our 10.00% ( 10.00 % ) notes .
in addition , we repurchased 31.8 shares of our common stock for an aggregate cost of $ 481.8 , including fees , and made dividend payments of $ 126.0 on our common stock .
foreign exchange rate changes the effect of foreign exchange rate changes on cash and cash equivalents included in the consolidated statements of cash flows resulted in a decrease of $ 101.0 in 2014 .
the decrease was primarily a result of the u.s .
dollar being stronger than several foreign currencies , including the canadian dollar , brazilian real , australian dollar and the euro as of december 31 , 2014 compared to december 31 , 2013 .
the effect of foreign exchange rate changes on cash and cash equivalents included in the consolidated statements of cash flows resulted in a decrease of $ 94.1 in 2013 .
the decrease was primarily a result of the u.s .
dollar being stronger than several foreign currencies , including the australian dollar , brazilian real , canadian dollar , japanese yen , and south african rand as of december 31 , 2013 compared to december 31 , 2012. .

balance sheet data                              | december 31 , 2014 | december 31 , 2013
----------------------------------------------- | ------------------ | ------------------
cash cash equivalents and marketable securities | $ 1667.2           | $ 1642.1
short-term borrowings                           | $ 107.2            | $ 179.1
current portion of long-term debt               | 2.1                | 353.6
long-term debt                                  | 1623.5             | 1129.8
total debt                                      | $ 1732.8           | $ 1662.5

liquidity outlook we expect our cash flow from operations , cash and cash equivalents to be sufficient to meet our anticipated operating requirements at a minimum for the next twelve months .
we also have a committed corporate credit facility as well as uncommitted facilities available to support our operating needs .
we continue to maintain a disciplined approach to managing liquidity , with flexibility over significant uses of cash , including our capital expenditures , cash used for new acquisitions , our common stock repurchase program and our common stock dividends .
from time to time , we evaluate market conditions and financing alternatives for opportunities to raise additional funds or otherwise improve our liquidity profile , enhance our financial flexibility and manage market risk .
our ability to access the capital markets depends on a number of factors , which include those specific to us , such as our credit rating , and those related to the financial markets , such as the amount or terms of available credit .
there can be no guarantee that we would be able to access new sources of liquidity on commercially reasonable terms , or at all.


dish network corporation notes to consolidated financial statements - continued this transaction was accounted for as a business combination using purchase price accounting .
the allocation of the purchase consideration is in the table below .
purchase allocation ( in thousands ) .

                        | purchase price allocation ( in thousands )
----------------------- | ------------------------------------------
cash                    | $ 107061
current assets          | 153258
property and equipment  | 28663
acquisition intangibles | 17826
other noncurrent assets | 12856
current liabilities     | -86080 ( 86080 )
total purchase price    | $ 233584

the pro forma revenue and earnings associated with the blockbuster acquisition are not included in this filing .
due to the material ongoing modifications of the business , management has determined that insufficient information exists to accurately develop meaningful historical pro forma financial information .
moreover , the historical operations of blockbuster materially changed during the periods preceding the acquisition as a result of blockbuster inc . 2019s bankruptcy proceedings , and any historical pro forma information would not prove useful in assessing our post acquisition earnings and cash flows .
the cost of goods sold on a unit basis for blockbuster in the current period was lower-than-historical costs .
the carrying values in the current period of the rental library and merchandise inventories ( 201cblockbuster inventory 201d ) were reduced to their estimated fair value due to the application of purchase accounting .
this impact on cost of goods sold on a unit basis will diminish in the future as we purchase new blockbuster inventory .
10 .
spectrum investments terrestar transaction gamma acquisition l.l.c .
( 201cgamma 201d ) , a wholly-owned subsidiary of dish network , entered into the terrestar transaction on june 14 , 2011 .
on july 7 , 2011 , the u.s .
bankruptcy court for the southern district of new york approved the asset purchase agreement with terrestar and we subsequently paid $ 1.345 billion of the cash purchase price .
dish network is a party to the asset purchase agreement solely with respect to certain guaranty obligations .
we have paid all but $ 30 million of the purchase price for the terrestar transaction , which will be paid upon closing of the terrestar transaction , or upon certain other conditions being met under the asset purchase agreement .
consummation of the acquisition contemplated in the asset purchase agreement is subject to , among other things , approval by the fcc .
on february 7 , 2012 , the canadian federal department of industry ( 201cindustry canada 201d ) approved the transfer of the canadian spectrum licenses held by terrestar to us .
if the remaining required approvals are not obtained , subject to certain exceptions , we have the right to require and direct the sale of some or all of the terrestar assets to a third party and we would be entitled to the proceeds from such a sale .
these proceeds could , however , be substantially less than amounts we have paid in the terrestar transaction .
additionally , gamma is responsible for providing certain working capital and certain administrative expenses of terrestar and certain of its subsidiaries after december 31 , 2011 .
we expect that the terrestar transaction will be accounted for as a business combination using purchase price accounting .
we also expect to allocate the purchase price to the various components of the acquisition based upon the fair value of each component using various valuation techniques , including the market approach , income approach and/or cost approach .
we expect the purchase price of the terrestar assets to be allocated to , among other things , spectrum and satellites.


part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the following table presents reported quarterly high and low per share sale prices of our class a common stock on the new york stock exchange ( nyse ) for the years 2004 and 2003. .

2004                       | high    | low
-------------------------- | ------- | ------
quarter ended march 31     | $ 13.12 | $ 9.89
quarter ended june 30      | 16.00   | 11.13
quarter ended september 30 | 15.85   | 13.10
quarter ended december 31  | 18.75   | 15.19
2003                       | high    | low
quarter ended march 31     | $ 5.94  | $ 3.55
quarter ended june 30      | 9.90    | 5.41
quarter ended september 30 | 11.74   | 8.73
quarter ended december 31  | 12.00   | 9.59

on march 18 , 2005 , the closing price of our class a common stock was $ 18.79 per share as reported on the as of march 18 , 2005 , we had 230604932 outstanding shares of class a common stock and 743 registered holders .
in february 2004 , all outstanding shares of our class b common stock were converted into shares of our class a common stock on a one-for-one basis pursuant to the occurrence of the 201cdodge conversion event 201d as defined in our charter .
our charter prohibits the future issuance of shares of class b common stock .
also in february 2004 , all outstanding shares of class c common stock were converted into shares of class a common stock on a one-for-one basis .
our charter permits the issuance of shares of class c common stock in the future .
the information under 201csecurities authorized for issuance under equity compensation plans 201d from the definitive proxy statement is hereby incorporated by reference into item 12 of this annual report .
dividends we have never paid a dividend on any class of common stock .
we anticipate that we may retain future earnings , if any , to fund the development and growth of our business .
the indentures governing our 93 20448% ( 20448 % ) senior notes due 2009 , our 7.50% ( 7.50 % ) senior notes due 2012 , and our 7.125% ( 7.125 % ) senior notes due 2012 prohibit us from paying dividends to our stockholders unless we satisfy certain financial covenants .
our borrower subsidiaries are generally prohibited under the terms of the credit facility , subject to certain exceptions , from making to us any direct or indirect distribution , dividend or other payment on account of their limited liability company interests , partnership interests , capital stock or other equity interests , except that , if no default exists or would be created thereby under the credit facility , our borrower subsidiaries may pay cash dividends or make other distributions to us in accordance with the credit facility within certain specified amounts and , in addition , may pay cash dividends or make other distributions to us in respect of our outstanding indebtedness and permitted future indebtedness .
the indentures governing the 12.25% ( 12.25 % ) senior subordinated discount notes due 2008 and the 7.25% ( 7.25 % ) senior subordinated notes due 2011 of american towers , inc .
( ati ) , our principal operating subsidiary , prohibit ati and certain of our other subsidiaries that have guaranteed those notes ( sister guarantors ) from paying dividends and making other payments or distributions to us unless certain


bhge 2018 form 10-k | 41 estimate would equal up to 5% ( 5 % ) of annual revenue .
the expenditures are expected to be used primarily for normal , recurring items necessary to support our business .
we also anticipate making income tax payments in the range of $ 425 million to $ 475 million in 2019 .
contractual obligations in the table below , we set forth our contractual obligations as of december 31 , 2018 .
certain amounts included in this table are based on our estimates and assumptions about these obligations , including their duration , anticipated actions by third parties and other factors .
the contractual obligations we will actually pay in future periods may vary from those reflected in the table because the estimates and assumptions are subjective. .

( in millions )                                | payments due by period total | payments due by period less than1 year | payments due by period 1 - 3years | payments due by period 4 - 5years | payments due by period more than5 years
---------------------------------------------- | ---------------------------- | -------------------------------------- | --------------------------------- | --------------------------------- | ---------------------------------------
total debt and capital lease obligations ( 1 ) | $ 6989                       | $ 942                                  | $ 562                             | $ 1272                            | $ 4213
estimated interest payments ( 2 )              | 3716                         | 239                                    | 473                               | 404                               | 2600
operating leases ( 3 )                         | 846                          | 186                                    | 262                               | 132                               | 266
purchase obligations ( 4 )                     | 1507                         | 1388                                   | 86                                | 25                                | 8
total                                          | $ 13058                      | $ 2755                                 | $ 1383                            | $ 1833                            | $ 7087

( 1 ) amounts represent the expected cash payments for the principal amounts related to our debt , including capital lease obligations .
amounts for debt do not include any deferred issuance costs or unamortized discounts or premiums including step up in the value of the debt on the acquisition of baker hughes .
expected cash payments for interest are excluded from these amounts .
total debt and capital lease obligations includes $ 896 million payable to ge and its affiliates .
as there is no fixed payment schedule on the amount payable to ge and its affiliates we have classified it as payable in less than one year .
( 2 ) amounts represent the expected cash payments for interest on our long-term debt and capital lease obligations .
( 3 ) amounts represent the future minimum payments under noncancelable operating leases with initial or remaining terms of one year or more .
we enter into operating leases , some of which include renewal options , however , we have excluded renewal options from the table above unless it is anticipated that we will exercise such renewals .
( 4 ) purchase obligations include expenditures for capital assets for 2019 as well as agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms , including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction .
due to the uncertainty with respect to the timing of potential future cash outflows associated with our uncertain tax positions , we are unable to make reasonable estimates of the period of cash settlement , if any , to the respective taxing authorities .
therefore , $ 597 million in uncertain tax positions , including interest and penalties , have been excluded from the contractual obligations table above .
see "note 12 .
income taxes" of the notes to consolidated and combined financial statements in item 8 herein for further information .
we have certain defined benefit pension and other post-retirement benefit plans covering certain of our u.s .
and international employees .
during 2018 , we made contributions and paid direct benefits of approximately $ 72 million in connection with those plans , and we anticipate funding approximately $ 41 million during 2019 .
amounts for pension funding obligations are based on assumptions that are subject to change , therefore , we are currently not able to reasonably estimate our contribution figures after 2019 .
see "note 11 .
employee benefit plans" of the notes to consolidated and combined financial statements in item 8 herein for further information .
off-balance sheet arrangements in the normal course of business with customers , vendors and others , we have entered into off-balance sheet arrangements , such as surety bonds for performance , letters of credit and other bank issued guarantees , which totaled approximately $ 3.6 billion at december 31 , 2018 .
it is not practicable to estimate the fair value of these financial instruments .
none of the off-balance sheet arrangements either has , or is likely to have , a material effect on our consolidated and combined financial statements.