republic services , inc .
notes to consolidated financial statements 2014 ( continued ) employee stock purchase plan republic employees are eligible to participate in an employee stock purchase plan .
the plan allows participants to purchase our common stock for 95% ( 95 % ) of its quoted market price on the last day of each calendar quarter .
for the years ended december 31 , 2017 , 2016 and 2015 , issuances under this plan totaled 113941 shares , 130085 shares and 141055 shares , respectively .
as of december 31 , 2017 , shares reserved for issuance to employees under this plan totaled 0.4 million and republic held employee contributions of approximately $ 1.8 million for the purchase of common stock .
12 .
stock repurchases and dividends stock repurchases stock repurchase activity during the years ended december 31 , 2017 and 2016 follows ( in millions except per share amounts ) : .

                                | 2017    | 2016
------------------------------- | ------- | -------
number of shares repurchased    | 9.6     | 8.4
amount paid                     | $ 610.7 | $ 403.8
weighted average cost per share | $ 63.84 | $ 48.56

as of december 31 , 2017 , there were 0.5 million repurchased shares pending settlement and $ 33.8 million was unpaid and included within other accrued liabilities .
in october 2017 , our board of directors added $ 2.0 billion to the existing share repurchase authorization that now extends through december 31 , 2020 .
before this , $ 98.4 million remained under a prior authorization .
share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws .
while the board of directors has approved the program , the timing of any purchases , the prices and the number of shares of common stock to be purchased will be determined by our management , at its discretion , and will depend upon market conditions and other factors .
the share repurchase program may be extended , suspended or discontinued at any time .
as of december 31 , 2017 , the remaining authorized purchase capacity under our october 2017 repurchase program was $ 1.8 billion .
in december 2015 , our board of directors changed the status of 71272964 treasury shares to authorized and unissued .
in doing so , the number of our issued shares was reduced by the stated amount .
our accounting policy is to deduct the par value from common stock and to reflect the excess of cost over par value as a deduction from additional paid-in capital .
the change in unissued shares resulted in a reduction of $ 2295.3 million in treasury stock , $ 0.6 million in common stock , and $ 2294.7 million in additional paid-in capital .
there was no effect on our total stockholders 2019 equity position as a result of the change .
dividends in october 2017 , our board of directors approved a quarterly dividend of $ 0.345 per share .
cash dividends declared were $ 446.3 million , $ 423.8 million and $ 404.3 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively .
as of december 31 , 2017 , we recorded a quarterly dividend payable of $ 114.4 million to shareholders of record at the close of business on january 2 , 2018 .
13 .
earnings per share basic earnings per share is computed by dividing net income attributable to republic services , inc .
by the weighted average number of common shares ( including vested but unissued rsus ) outstanding during the


issuer purchases of equity securities ( registered pursuant to section 12 of the exchange act ) period number of shares purchased average price paid per share number of shares purchased as part of publicly announced plans or programs maximum approximate dollar value of shares that may yet be purchased under the plans or programs ( 1 ) ( millions ) .

period                                | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | maximum approximate dollar value of shares that may yet be purchased under the plans or programs ( millions )
------------------------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------
january 1-31 2007                     | 1311268                                | $ 76.33                      | 1277200                                                                          | $ 651
february 1-28 2007                    | 6542591                                | $ 75.12                      | 6522500                                                                          | $ 6731
march 1-31 2007                       | 8187472                                | $ 75.59                      | 8151700                                                                          | $ 6115
total january 1 2014 march 31 2007    | 16041331                               | $ 75.46                      | 15951400                                                                         | $ 6115
april 1-30 2007                       | 3548221                                | $ 77.55                      | 3476700                                                                          | $ 5846
may 1-31 2007                         | 4428219                                | $ 85.84                      | 4202800                                                                          | $ 5485
june 1-30 2007                        | 3885033                                | $ 86.58                      | 3810800                                                                          | $ 5155
total april 1 2014 june 30 2007       | 11861473                               | $ 83.60                      | 11490300                                                                         | $ 5155
july 1-31 2007                        | 1646251                                | $ 89.01                      | 1510300                                                                          | $ 5021
august 1-31 2007                      | 2329478                                | $ 87.05                      | 2247300                                                                          | $ 4825
september 1-30 2007                   | 2086564                                | $ 90.24                      | 2029600                                                                          | $ 4642
total july 1 2014 september 30 2007   | 6062293                                | $ 88.68                      | 5787200                                                                          | $ 4642
october 1-31 2007                     | 2192302                                | $ 88.89                      | 2178500                                                                          | $ 4448
november 1-30 2007                    | 1702375                                | $ 82.35                      | 1692000                                                                          | $ 4309
december 1-31 2007                    | 1896612                                | $ 85.41                      | 1873500                                                                          | $ 4149
total october 1 2014 dec . 31 2007    | 5791289                                | $ 85.83                      | 5744000                                                                          | $ 4149
total january 1 2014 december 31 2007 | 39756386                               | $ 81.42                      | 38972900                                                                         | $ 4149

( 1 ) the total number of shares purchased includes : ( i ) shares purchased under the board 2019s authorizations described above , and ( ii ) shares purchased in connection with the exercise of stock options ( which totaled 34068 shares in january 2007 , 20091 shares in february 2007 , 35772 shares in march 2007 , 71521 shares in april 2007 , 225419 shares in may 2007 , 74233 shares in june 2007 , 135951 shares in july 2007 , 82178 shares in august 2007 , 56964 shares in september 2007 , 13802 shares in october 2007 , 10375 shares in november 2007 , and 23112 shares in december 2007 ) .


there were no options granted in excess of market value in 2011 , 2010 or 2009 .
shares of common stock available during the next year for the granting of options and other awards under the incentive plans were 33775543 at december 31 , 2011 .
total shares of pnc common stock authorized for future issuance under equity compensation plans totaled 35304422 shares at december 31 , 2011 , which includes shares available for issuance under the incentive plans and the employee stock purchase plan ( espp ) as described below .
during 2011 , we issued 731336 shares from treasury stock in connection with stock option exercise activity .
as with past exercise activity , we currently intend to utilize primarily treasury stock for any future stock option exercises .
awards granted to non-employee directors in 2011 , 2010 and 2009 include 27090 , 29040 , and 39552 deferred stock units , respectively , awarded under the outside directors deferred stock unit plan .
a deferred stock unit is a phantom share of our common stock , which requires liability accounting treatment until such awards are paid to the participants as cash .
as there are no vesting or service requirements on these awards , total compensation expense is recognized in full on awarded deferred stock units on the date of grant .
incentive/performance unit share awards and restricted stock/unit awards the fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant .
the value of certain incentive/ performance unit share awards is subsequently remeasured based on the achievement of one or more financial and other performance goals generally over a three-year period .
the personnel and compensation committee of the board of directors approves the final award payout with respect to incentive/performance unit share awards .
restricted stock/unit awards have various vesting periods generally ranging from 36 months to 60 months .
beginning in 2011 , we incorporated two changes to certain awards under our existing long-term incentive compensation programs .
first , for certain grants of incentive performance units , the future payout amount will be subject to a negative annual adjustment if pnc fails to meet certain risk-related performance metrics .
this adjustment is in addition to the existing financial performance metrics relative to our peers .
these grants have a three-year performance period and are payable in either stock or a combination of stock and cash .
second , performance-based restricted share units ( performance rsus ) were granted in 2011 to certain of our executives in lieu of stock options .
these performance rsus ( which are payable solely in stock ) have a service condition , an internal risk-related performance condition , and an external market condition .
satisfaction of the performance condition is based on four independent one-year performance periods .
the weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2011 , 2010 and 2009 was $ 63.25 , $ 54.59 and $ 41.16 per share , respectively .
we recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program .
nonvested incentive/performance unit share awards and restricted stock/unit awards 2013 rollforward shares in thousands nonvested incentive/ performance unit shares weighted- average date fair nonvested restricted stock/ shares weighted- average date fair .

shares in thousands december 31 2010 | nonvested incentive/ performance unit shares 363 | weighted- average grant date fair value $ 56.40 | nonvested restricted stock/ unit shares 2250 | weighted- average grant date fair value $ 49.95
------------------------------------ | ------------------------------------------------ | ----------------------------------------------- | -------------------------------------------- | -----------------------------------------------
granted                              | 623                                              | 64.21                                           | 1059                                         | 62.68
vested                               | -156 ( 156 )                                     | 59.54                                           | -706 ( 706 )                                 | 51.27
forfeited                            |                                                  |                                                 | -91 ( 91 )                                   | 52.24
december 31 2011                     | 830                                              | $ 61.68                                         | 2512                                         | $ 54.87

in the chart above , the unit shares and related weighted- average grant-date fair value of the incentive/performance awards exclude the effect of dividends on the underlying shares , as those dividends will be paid in cash .
at december 31 , 2011 , there was $ 61 million of unrecognized deferred compensation expense related to nonvested share- based compensation arrangements granted under the incentive plans .
this cost is expected to be recognized as expense over a period of no longer than five years .
the total fair value of incentive/performance unit share and restricted stock/unit awards vested during 2011 , 2010 and 2009 was approximately $ 52 million , $ 39 million and $ 47 million , respectively .
liability awards we grant annually cash-payable restricted share units to certain executives .
the grants were made primarily as part of an annual bonus incentive deferral plan .
while there are time- based and service-related vesting criteria , there are no market or performance criteria associated with these awards .
compensation expense recognized related to these awards was recorded in prior periods as part of annual cash bonus criteria .
as of december 31 , 2011 , there were 753203 of these cash- payable restricted share units outstanding .
174 the pnc financial services group , inc .
2013 form 10-k


fidelity national information services , inc .
and subsidiaries notes to consolidated financial statements - ( continued ) ( a ) intrinsic value is based on a closing stock price as of december 31 , 2016 of $ 75.64 .
the weighted average fair value of options granted during the years ended december 31 , 2016 , 2015 and 2014 was estimated to be $ 9.35 , $ 10.67 and $ 9.15 , respectively , using the black-scholes option pricing model with the assumptions below: .

                                         | 2016             | 2015             | 2014
---------------------------------------- | ---------------- | ---------------- | ----------------
risk free interest rate                  | 1.2% ( 1.2 % )   | 1.4% ( 1.4 % )   | 1.4% ( 1.4 % )
volatility                               | 20.4% ( 20.4 % ) | 21.7% ( 21.7 % ) | 21.2% ( 21.2 % )
dividend yield                           | 1.6% ( 1.6 % )   | 1.6% ( 1.6 % )   | 1.6% ( 1.6 % )
weighted average expected life ( years ) | 4.2              | 4.2              | 4.2

the company estimates future forfeitures at the time of grant and revises those estimates in subsequent periods if actual forfeitures differ from those estimates .
the company bases the risk-free interest rate that is used in the stock option valuation model on u.s .
n treasury securities issued with maturities similar to the expected term of the options .
the expected stock volatility factor is determined using historical daily price changes of the company's common stock over the most recent period commensurate with the expected term of the option and the impact of any expected trends .
the dividend yield assumption is based on the current dividend yield at the grant tt date or management's forecasted expectations .
the expected life assumption is determined by calculating the average term from the tt company's historical stock option activity and considering the impact of expected future trends .
the company granted a total of 1 million restricted stock shares at prices ranging from $ 56.44 to $ 79.41 on various dates in 2016 .
the company granted a total of 1 million restricted stock shares at prices ranging from $ 61.33 to $ 69.33 on various dates in 20t 15 .
the company granted a total of 1 million restricted stock shares at prices ranging from $ 52.85 to $ 64.04 on various dates in 2014 .
these shares were granted at the closing market price on the date of grant and vest annually over three years .
as of december 31 , 2016 and 2015 , we have approximately 3 million and 4 million unvested restricted shares remaining .
the december 31 , 2016 balance includes those rsu's converted in connection with the sungard acquisition as noted above .
the company has provided for total stock compensation expense of $ 137 million , $ 98 million and $ 56 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively , which is included in selling , general , and administrative expense in the consolidated statements of earnings , unless the expense is attributable to a discontinued operation .
of the total stock compensation expense , $ 2 million for 2014 relates to liability based awards that will not be credited to additional paid in capital until issued .
total d compensation expense for 2016 and 2015 did not include amounts relating to liability based awards .
as of december 31 , 2016 and 2015 , the total unrecognized compensation cost related to non-vested stock awards is $ 141 million and $ 206 million , respectively , which is expected to be recognized in pre-tax income over a weighted average period of 1.4 years and 1.6 years , respectively .
german pension plans our german operations have unfunded , defined benefit plan obligations .
these obligations relate to benefits to be paid to germanaa employees upon retirement .
the accumulated benefit obligation as of december 31 , 2016 and 2015 , was $ 49 million and $ 48 million , respectively , and the projected benefit obligation was $ 50 million and $ 49 million , respectively .
the plan remains unfunded as of december 31 , 2016 .
( 15 ) divestitures and discontinued operations on december 7 , 2016 , the company entered into a definitive agreement to sell the sungard public sector and education ( "ps&e" ) businesses for $ 850 million .
the transaction included all ps&e solutions , which provide a comprehensive set of technology solutions to address public safety and public administration needs of government entities as well asn the needs of k-12 school districts .
the divestiture is consistent with our strategy to serve the financial services markets .
we received cash proceeds , net of taxes and transaction-related expenses of approximately $ 500 million .
net cash proceeds are expected to be used to reduce outstanding debt ( see note 10 ) .
the ps&e businesses are included in the corporate and other segment .
the transaction closed on february 1 , 2017 , resulting in an expected pre-tax gain ranging from $ 85 million to $ 90 million that will


american tower corporation and subsidiaries notes to consolidated financial statements the allocation of the purchase price was finalized during the year ended december 31 , 2012 .
the following table summarizes the allocation of the aggregate purchase consideration paid and the amounts of assets acquired and liabilities assumed based upon their estimated fair value at the date of acquisition ( in thousands ) : purchase price allocation .

                                  | final purchase price allocation
--------------------------------- | -------------------------------
non-current assets                | $ 2
property and equipment            | 3590
intangible assets ( 1 )           | 1062
other non-current liabilities     | -91 ( 91 )
fair value of net assets acquired | $ 4563
goodwill ( 2 )                    | 89

( 1 ) consists of customer-related intangibles of approximately $ 0.4 million and network location intangibles of approximately $ 0.7 million .
the customer-related intangibles and network location intangibles are being amortized on a straight-line basis over periods of up to 20 years .
( 2 ) the company expects that the goodwill recorded will be deductible for tax purposes .
the goodwill was allocated to the company 2019s international rental and management segment .
colombia 2014colombia movil acquisition 2014on july 17 , 2011 , the company entered into a definitive agreement with colombia movil s.a .
e.s.p .
( 201ccolombia movil 201d ) , whereby atc sitios infraco , s.a.s. , a colombian subsidiary of the company ( 201catc infraco 201d ) , would purchase up to 2126 communications sites from colombia movil for an aggregate purchase price of approximately $ 182.0 million .
from december 21 , 2011 through the year ended december 31 , 2012 , atc infraco completed the purchase of 1526 communications sites for an aggregate purchase price of $ 136.2 million ( including contingent consideration of $ 17.3 million ) , subject to post-closing adjustments .
through a subsidiary , millicom international cellular s.a .
( 201cmillicom 201d ) exercised its option to acquire an indirect , substantial non-controlling interest in atc infraco .
under the terms of the agreement , the company is required to make additional payments upon the conversion of certain barter agreements with other wireless carriers to cash paying lease agreements .
based on the company 2019s current estimates , the value of potential contingent consideration payments required to be made under the amended agreement is expected to be between zero and $ 32.8 million and is estimated to be $ 17.3 million using a probability weighted average of the expected outcomes at december 31 , 2012 .
during the year ended december 31 , 2012 , the company recorded a reduction in fair value of $ 1.2 million , which is included in other operating expenses in the consolidated statements of operations.


taxes .
if group or its bermuda subsidiaries were to become subject to u.s .
income tax ; there could be a material adverse effect on the company 2019s financial condition , results of operations and cash flows .
united kingdom .
bermuda re 2019s uk branch conducts business in the uk and is subject to taxation in the uk .
bermuda re believes that it has operated and will continue to operate its bermuda operation in a manner which will not cause them to be subject to uk taxation .
if bermuda re 2019s bermuda operations were to become subject to uk income tax there could be a material adverse impact on the company 2019s financial condition , results of operations and cash flow .
available information the company 2019s annual reports on form 10-k , quarterly reports on form 10-q , current reports on form 8-k , proxy state- ments and amendments to those reports are available free of charge through the company 2019s internet website at http://www.everestre.com as soon as reasonably practicable after such reports are electronically filed with the securities and exchange commission ( the 201csec 201d ) .
i t e m 1 a .
r i s k f a c t o r s in addition to the other information provided in this report , the following risk factors should be considered when evaluating an investment in our securities .
if the circumstances contemplated by the individual risk factors materialize , our business , finan- cial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly .
r i s k s r e l a t i n g t o o u r b u s i n e s s our results could be adversely affected by catastrophic events .
we are exposed to unpredictable catastrophic events , including weather-related and other natural catastrophes , as well as acts of terrorism .
any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations .
we define a catastrophe as an event that causes a pre-tax loss on property exposures before reinsurance of at least $ 5.0 million , before corporate level rein- surance and taxes .
effective for the third quarter 2005 , industrial risk losses have been excluded from catastrophe losses , with prior periods adjusted for comparison purposes .
by way of illustration , during the past five calendar years , pre-tax catastrophe losses , net of contract specific reinsurance but before cessions under corporate reinsurance programs , were as follows: .

calendar year | calendar year |
------------- | ------------- | -------
2006          | $ 287.9       | million
2005          | $ 1485.7      | million
2004          | $ 390.0       | million
2003          | $ 35.0        | million
2002          | $ 30.0        | million

our losses from future catastrophic events could exceed our projections .
we use projections of possible losses from future catastrophic events of varying types and magnitudes as a strategic under- writing tool .
we use these loss projections to estimate our potential catastrophe losses in certain geographic areas and decide on the purchase of retrocessional coverage or other actions to limit the extent of potential losses in a given geographic area .
these loss projections are approximations reliant on a mix of quantitative and qualitative processes and actual losses may exceed the projections by a material amount .
we focus on potential losses that can be generated by any single event as part of our evaluation and monitoring of our aggre- gate exposure to catastrophic events .
accordingly , we employ various techniques to estimate the amount of loss we could sustain from any single catastrophic event in various geographical areas .
these techniques range from non-modeled deterministic approaches 2014such as tracking aggregate limits exposed in catastrophe-prone zones and applying historic dam- age factors 2014to modeled approaches that scientifically measure catastrophe risks using sophisticated monte carlo simulation techniques that provide insights into the frequency and severity of expected losses on a probabilistic basis .
if our loss reserves are inadequate to meet our actual losses , net income would be reduced or we could incur a loss .
we are required to maintain reserves to cover our estimated ultimate liability of losses and loss adjustment expenses for both reported and unreported claims incurred .
these reserves are only estimates of what we believe the settlement and adminis- tration of claims will cost based on facts and circumstances known to us .
in setting reserves for our reinsurance liabilities , we rely on claim data supplied by our ceding companies and brokers and we employ actuarial and statistical projections .
the information received from our ceding companies is not always timely or accurate , which can contribute to inaccuracies in our 81790fin_a 4/13/07 11:08 am page 23 http://www.everestre.com


notes to consolidated financial statements ( continued ) note 3 2014financial instruments ( continued ) accounts receivable trade receivables the company distributes its products through third-party distributors and resellers and directly to certain education , consumer , and commercial customers .
the company generally does not require collateral from its customers ; however , the company will require collateral in certain instances to limit credit risk .
in addition , when possible , the company does attempt to limit credit risk on trade receivables with credit insurance for certain customers in latin america , europe , asia , and australia and by arranging with third- party financing companies to provide flooring arrangements and other loan and lease programs to the company 2019s direct customers .
these credit-financing arrangements are directly between the third-party financing company and the end customer .
as such , the company generally does not assume any recourse or credit risk sharing related to any of these arrangements .
however , considerable trade receivables that are not covered by collateral , third-party flooring arrangements , or credit insurance are outstanding with the company 2019s distribution and retail channel partners .
no customer accounted for more than 10% ( 10 % ) of trade receivables as of september 30 , 2006 or september 24 , 2005 .
the following table summarizes the activity in the allowance for doubtful accounts ( in millions ) : september 30 , september 24 , september 25 .

                              | september 30 2006 | september 24 2005 | september 25 2004
----------------------------- | ----------------- | ----------------- | -----------------
beginning allowance balance   | $ 46              | $ 47              | $ 49
charged to costs and expenses | 17                | 8                 | 3
deductions ( a )              | -11 ( 11 )        | -9 ( 9 )          | -5 ( 5 )
ending allowance balance      | $ 52              | $ 46              | $ 47

( a ) represents amounts written off against the allowance , net of recoveries .
vendor non-trade receivables the company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of raw material components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the company .
the company purchases these raw material components directly from suppliers .
these non-trade receivables , which are included in the consolidated balance sheets in other current assets , totaled $ 1.6 billion and $ 417 million as of september 30 , 2006 and september 24 , 2005 , respectively .
the company does not reflect the sale of these components in net sales and does not recognize any profits on these sales until the products are sold through to the end customer at which time the profit is recognized as a reduction of cost of sales .
derivative financial instruments the company uses derivatives to partially offset its business exposure to foreign exchange risk .
foreign currency forward and option contracts are used to offset the foreign exchange risk on certain existing assets and liabilities and to hedge the foreign exchange risk on expected future cash flows on certain forecasted revenue and cost of sales .
from time to time , the company enters into interest rate derivative agreements to modify the interest rate profile of certain investments and debt .
the company 2019s accounting policies for these instruments are based on whether the instruments are designated as hedge or non-hedge instruments .
the company records all derivatives on the balance sheet at fair value.


organizational structure a key enabler of the republic way operating model is our organizational structure that fosters a high performance culture by maintaining 360-degree accountability and full profit and loss responsibility with local management , supported by a functional structure to provide subject matter expertise .
this structure allows us to take advantage of our scale by coordinating functionally across all of our markets , while empowering local management to respond to unique market dynamics .
our senior management evaluates , oversees and manages the financial performance of our operations through two field groups , referred to as group 1 and group 2 .
group 1 primarily consists of geographic areas located in the western united states , and group 2 primarily consists of geographic areas located in the southeastern and mid-western united states , and the eastern seaboard of the united states .
each field group is organized into several areas and each area contains multiple business units or operating locations .
each of our field groups and all of our areas provide collection , transfer , recycling and landfill services .
see note 14 , segment reporting , to our consolidated financial statements in item 8 of this form 10-k for further discussion of our operating segments .
through this operating model , we have rolled out several productivity and cost control initiatives designed to deliver the best service possible to our customers in an efficient and environmentally sound way .
fleet automation approximately 75% ( 75 % ) of our residential routes have been converted to automated single-driver trucks .
by converting our residential routes to automated service , we reduce labor costs , improve driver productivity , decrease emissions and create a safer work environment for our employees .
additionally , communities using automated vehicles have higher participation rates in recycling programs , thereby complementing our initiative to expand our recycling capabilities .
fleet conversion to compressed natural gas ( cng ) approximately 20% ( 20 % ) of our fleet operates on natural gas .
we expect to continue our gradual fleet conversion to cng as part of our ordinary annual fleet replacement process .
we believe a gradual fleet conversion is the most prudent approach to realizing the full value of our previous fleet investments .
approximately 13% ( 13 % ) of our replacement vehicle purchases during 2018 were cng vehicles .
we believe using cng vehicles provides us a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment .
although upfront capital costs are higher , using cng reduces our overall fleet operating costs through lower fuel expenses .
as of december 31 , 2018 , we operated 37 cng fueling stations .
standardized maintenance based on an industry trade publication , we operate the seventh largest vocational fleet in the united states .
as of december 31 , 2018 , our average fleet age in years , by line of business , was as follows : approximate number of vehicles approximate average age .

                | approximate number of vehicles | approximate average age
--------------- | ------------------------------ | -----------------------
residential     | 7000                           | 7.5
small-container | 4700                           | 7.0
large-container | 4300                           | 8.8
total           | 16000                          | 7.7

onefleet , our standardized vehicle maintenance program , enables us to use best practices for fleet management , truck care and maintenance .
through standardization of core functions , we believe we can minimize variability


"distribution date" ) .
until the distribution date ( or earlier redemption or expiration of the rights ) , the rights will be traded with , and only with , the common stock .
until a right is exercised , the right will not entitle the holder thereof to any rights as a stockholder .
if any person or group becomes an acquiring person , each holder of a right , other than rights beneficially owned by the acquiring person , will thereafter have the right to receive upon exercise and payment of the purchase price that number of shares of common stock having a market value of two times the purchase price and , if the company is acquired in a business combination transaction or 50% ( 50 % ) or more of its assets are sold , each holder of a right will thereafter have the right to receive upon exercise and payment of the purchase price that number of shares of common stock of the acquiring company which at the time of the transaction will have a market value of two times the purchase price .
at any time after any person becomes an acquiring person and prior to the acquisition by such person or group of 50% ( 50 % ) or more of the outstanding common stock , the board of directors of the company may cause the rights ( other than rights owned by such person or group ) to be exchanged , in whole or in part , for common stock or junior preferred shares , at an exchange rate of one share of common stock per right or one half of one-hundredth of a junior preferred share per right .
at any time prior to the acquisition by a person or group of beneficial ownership of 15% ( 15 % ) or more of the outstanding common stock , the board of directors of the company may redeem the rights at a price of $ 0.01 per right .
the rights have certain anti-takeover effects , in that they will cause substantial dilution to a person or group that attempts to acquire a significant interest in vertex on terms not approved by the board of directors .
common stock reserved for future issuance at december 31 , 2005 , the company has reserved shares of common stock for future issuance under all equity compensation plans as follows ( shares in thousands ) : o .
significant revenue arrangements the company has formed strategic collaborations with pharmaceutical companies and other organizations in the areas of drug discovery , development , and commercialization .
research , development and commercialization agreements provide the company with financial support and other valuable resources for its research programs and for the development of clinical drug candidates , and the marketing and sales of products .
collaborative research , development and commercialization agreements in the company's collaborative research , development and commercialization programs the company seeks to discover , develop and commercialize pharmaceutical products in conjunction with and supported by the company's collaborators .
collaborative research and development arrangements may provide research funding over an initial contract period with renewal and termination options that .

common stock under stock and option plans    | 17739
-------------------------------------------- | -----
common stock under the vertex purchase plan  | 842
common stock under the vertex 401 ( k ) plan | 270
total                                        | 18851


hologic , inc .
notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) 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 2013 to efficiently manage its supply chain and improve manufacturing margins .
the combination of the companies should also facilitate further manufacturing efficiencies and accelerate research and development of new detector products .
aeg was a privately held group of companies headquartered in warstein , germany , with manufacturing operations in germany , china and the united states .
the aggregate purchase price for aeg was approximately $ 31300 ( subject to adjustment ) consisting of eur $ 24100 in cash and 110 shares of hologic common stock valued at $ 5300 , and approximately $ 1900 for acquisition related fees and expenses .
the company determined the fair value of the shares issued in connection with the acquisition in accordance with eitf issue no .
99-12 , determination of the measurement date for the market price of acquirer securities issued in a purchase business combination .
these 110 shares are subject to contingent put options pursuant to which the holders have the option to resell the shares to the company during a period of one year following the completion of the acquisition if the closing price of the company 2019s stock falls and remains below a threshold price .
the repurchase price would be the closing price of the company 2019s common stock on the date of exercise .
the company 2019s maximum aggregate obligation under these put options would be approximately $ 4100 if the put option were exercised for all the shares covered by those options and the closing price of our common stock on the date of exercise equaled the maximum threshold price permitting the exercise of the option .
no shares were subject to the put option as of september 30 , 2006 as the company 2019s stock price was in excess of the minimum value .
the acquisition also provides for a one-year earn out of eur 1700 ( approximately $ 2000 usd ) which will be payable in cash if aeg calendar year 2006 earnings , as defined , exceeds a pre-determined amount .
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 represents 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 components and allocation of the purchase price , consists of the following approximate amounts: .

net tangible assets acquired as of may 2 2006 | $ 23700
--------------------------------------------- | --------------
in-process research and development           | 600
developed technology and know how             | 1900
customer relationship                         | 800
trade name                                    | 400
deferred income taxes                         | -3000 ( 3000 )
goodwill                                      | 6900
estimated purchase price                      | $ 31300

the purchase price allocation above has been revised from that included in the company 2019s form 10-q for the period ended june 24 , 2006 , to decrease the net tangible asset acquired and increased the deferred income tax liability with a corresponding increase to goodwill for both .
the decrease to the net tangible assets primarily


item 7a .
quantitative and qualitative disclosures about market risk ( amounts in millions ) in the normal course of business , we are exposed to market risks related to interest rates , foreign currency rates and certain balance sheet items .
from time to time , we use derivative instruments , pursuant to established guidelines and policies , to manage some portion of these risks .
derivative instruments utilized in our hedging activities are viewed as risk management tools and are not used for trading or speculative purposes .
interest rates our exposure to market risk for changes in interest rates relates primarily to the fair market value and cash flows of our debt obligations .
the majority of our debt ( approximately 91% ( 91 % ) and 86% ( 86 % ) as of december 31 , 2014 and 2013 , respectively ) bears interest at fixed rates .
we do have debt with variable interest rates , but a 10% ( 10 % ) increase or decrease in interest rates would not be material to our interest expense or cash flows .
the fair market value of our debt is sensitive to changes in interest rates , and the impact of a 10% ( 10 % ) change in interest rates is summarized below .
increase/ ( decrease ) in fair market value as of december 31 , 10% ( 10 % ) increase in interest rates 10% ( 10 % ) decrease in interest rates .

as of december 31, | increase/ ( decrease ) in fair market value 10% ( 10 % ) increasein interest rates | increase/ ( decrease ) in fair market value 10% ( 10 % ) decreasein interest rates
------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
2014               | $ -35.5 ( 35.5 )                                                                   | $ 36.6
2013               | -26.9 ( 26.9 )                                                                     | 27.9

we have used interest rate swaps for risk management purposes to manage our exposure to changes in interest rates .
we do not have any interest rate swaps outstanding as of december 31 , 2014 .
we had $ 1667.2 of cash , cash equivalents and marketable securities as of december 31 , 2014 that we generally invest in conservative , short-term bank deposits or securities .
the interest income generated from these investments is subject to both domestic and foreign interest rate movements .
during 2014 and 2013 , we had interest income of $ 27.4 and $ 24.7 , respectively .
based on our 2014 results , a 100-basis-point increase or decrease in interest rates would affect our interest income by approximately $ 16.7 , assuming that all cash , cash equivalents and marketable securities are impacted in the same manner and balances remain constant from year-end 2014 levels .
foreign currency rates we are subject to translation and transaction risks related to changes in foreign currency exchange rates .
since we report revenues and expenses in u.s .
dollars , changes in exchange rates may either positively or negatively affect our consolidated revenues and expenses ( as expressed in u.s .
dollars ) from foreign operations .
the primary foreign currencies that impacted our results during 2014 included the argentine peso , australian dollar , brazilian real and british pound sterling .
based on 2014 exchange rates and operating results , if the u.s .
dollar were to strengthen or weaken by 10% ( 10 % ) , we currently estimate operating income would decrease or increase approximately 4% ( 4 % ) , assuming that all currencies are impacted in the same manner and our international revenue and expenses remain constant at 2014 levels .
the functional currency of our foreign operations is generally their respective local currency .
assets and liabilities are translated at the exchange rates in effect at the balance sheet date , and revenues and expenses are translated at the average exchange rates during the period presented .
the resulting translation adjustments are recorded as a component of accumulated other comprehensive loss , net of tax , in the stockholders 2019 equity section of our consolidated balance sheets .
our foreign subsidiaries generally collect revenues and pay expenses in their functional currency , mitigating transaction risk .
however , certain subsidiaries may enter into transactions in currencies other than their functional currency .
assets and liabilities denominated in currencies other than the functional currency are susceptible to movements in foreign currency until final settlement .
currency transaction gains or losses primarily arising from transactions in currencies other than the functional currency are included in office and general expenses .
we have not entered into a material amount of foreign currency forward exchange contracts or other derivative financial instruments to hedge the effects of potential adverse fluctuations in foreign currency exchange rates.


analog devices , inc .
notes to consolidated financial statements 2014 ( continued ) the total intrinsic value of options exercised ( i.e .
the difference between the market price at exercise and the price paid by the employee to exercise the options ) during fiscal 2016 , 2015 and 2014 was $ 46.6 million , $ 99.2 million and $ 130.6 million , respectively , and the total amount of proceeds received by the company from exercise of these options during fiscal 2016 , 2015 and 2014 was $ 61.5 million , $ 122.6 million and $ 200.1 million , respectively .
a summary of the company 2019s restricted stock unit award activity as of october 29 , 2016 and changes during the fiscal year then ended is presented below : restricted stock units outstanding ( in thousands ) weighted- average grant- date fair value per share .

                                                      | restrictedstock unitsoutstanding ( in thousands ) | weighted-average grant-date fair valueper share
----------------------------------------------------- | ------------------------------------------------- | -----------------------------------------------
restricted stock units outstanding at october 31 2015 | 2698                                              | $ 47.59
units granted                                         | 1099                                              | $ 51.59
restrictions lapsed                                   | -905 ( 905 )                                      | $ 44.30
forfeited                                             | -202 ( 202 )                                      | $ 50.34
restricted stock units outstanding at october 29 2016 | 2690                                              | $ 50.11

as of october 29 , 2016 , there was $ 112.3 million of total unrecognized compensation cost related to unvested share- based awards comprised of stock options and restricted stock units .
that cost is expected to be recognized over a weighted- average period of 1.4 years .
the total grant-date fair value of shares that vested during fiscal 2016 , 2015 and 2014 was approximately $ 62.8 million , $ 65.6 million and $ 57.4 million , respectively .
common stock repurchases the company 2019s common stock repurchase program has been in place since august 2004 .
in the aggregate , the board of directors has authorized the company to repurchase $ 6.2 billion of the company 2019s common stock under the program .
the company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions .
unless terminated earlier by resolution of the company 2019s board of directors , the repurchase program will expire when the company has repurchased all shares authorized under the program .
as of october 29 , 2016 , the company had repurchased a total of approximately 147.0 million shares of its common stock for approximately $ 5.4 billion under this program .
an additional $ 792.5 million remains available for repurchase of shares under the current authorized program .
the repurchased shares are held as authorized but unissued shares of common stock .
as a result of the company's planned acquisition of linear technology corporation , see note 6 , acquisitions , of these notes to consolidated financial statements , the company temporarily suspended the common stock repurchase plan in the third quarter of 2016 .
the company also , from time to time , repurchases shares in settlement of employee minimum tax withholding obligations due upon the vesting of restricted stock units or the exercise of stock options .
the withholding amount is based on the employees minimum statutory withholding requirement .
any future common stock repurchases will be dependent upon several factors , including the company's financial performance , outlook , liquidity and the amount of cash the company has available in the united states .
preferred stock the company has 471934 authorized shares of $ 1.00 par value preferred stock , none of which is issued or outstanding .
the board of directors is authorized to fix designations , relative rights , preferences and limitations on the preferred stock at the time of issuance.


approximately 710 asphalt-paving contractors , government entities ( states , counties , cities and townships ) and asphalt roofing shingle manufacturers .
we also produce asphalt cements , polymerized asphalt , asphalt emulsions and industrial asphalts .
retail marketing ssa , our wholly-owned subsidiary , sells gasoline and merchandise through owned and operated retail outlets primarily under the speedway ae and superamerica ae brands .
diesel fuel is also sold at a number of these outlets .
ssa retail outlets offer a wide variety of merchandise , such as prepared foods , beverages , and non-food items , as well as a significant number of proprietary items .
as of december 31 , 2008 , ssa had 1617 retail outlets in nine states .
sales of refined products through these retail outlets accounted for 15 percent of our refined product sales volumes in 2008 .
revenues from sales of non-petroleum merchandise through these retail outlets totaled $ 2838 million in 2008 , $ 2796 million in 2007 and $ 2706 million in 2006 .
the demand for gasoline is seasonal in a majority of ssa markets , usually with the highest demand during the summer driving season .
profit levels from the sale of merchandise and services tend to be less volatile than profit levels from the retail sale of gasoline and diesel fuel .
in october 2008 , we sold our interest in pilot travel centers llc ( 201cptc 201d ) , an operator of travel centers in the united states .
pipeline transportation we own a system of pipelines through marathon pipe line llc ( 201cmpl 201d ) and ohio river pipe line llc ( 201corpl 201d ) , our wholly-owned subsidiaries .
our pipeline systems transport crude oil and refined products primarily in the midwest and gulf coast regions to our refineries , our terminals and other pipeline systems .
our mpl and orpl wholly-owned and undivided interest common carrier systems consist of 1815 miles of crude oil lines and 1826 miles of refined product lines comprising 34 systems located in 11 states .
the mpl common carrier pipeline network is one of the largest petroleum pipeline systems in the united states , based on total barrels delivered .
our common carrier pipeline systems are subject to state and federal energy regulatory commission regulations and guidelines , including published tariffs for the transportation of crude oil and refined products .
third parties generated 11 percent of the crude oil and refined product shipments on our mpl and orpl common carrier pipelines in 2008 .
our mpl and orpl common carrier pipelines transported the volumes shown in the following table for each of the last three years .
pipeline barrels handled ( thousands of barrels per day ) 2008 2007 2006 .

( thousands of barrels per day ) | 2008 | 2007 | 2006
-------------------------------- | ---- | ---- | ----
crude oil trunk lines            | 1405 | 1451 | 1437
refined products trunk lines     | 960  | 1049 | 1101
total                            | 2365 | 2500 | 2538

we also own 176 miles of private crude oil pipelines and 850 miles of private refined products pipelines , and we lease 217 miles of common carrier refined product pipelines .
we have partial ownership interests in several pipeline companies that have approximately 780 miles of crude oil pipelines and 3000 miles of refined products pipelines , including about 800 miles operated by mpl .
in addition , mpl operates most of our private pipelines and 985 miles of crude oil and 160 miles of natural gas pipelines owned by our e&p segment .
our major refined product lines include the cardinal products pipeline and the wabash pipeline .
the cardinal products pipeline delivers refined products from kenova , west virginia , to columbus , ohio .
the wabash pipeline system delivers product from robinson , illinois , to various terminals in the area of chicago , illinois .
other significant refined product pipelines owned and operated by mpl extend from : robinson , illinois , to louisville , kentucky ; garyville , louisiana , to zachary , louisiana ; and texas city , texas , to pasadena , texas.


backlog applied manufactures systems to meet demand represented by order backlog and customer commitments .
backlog consists of : ( 1 ) orders for which written authorizations have been accepted and assigned shipment dates are within the next 12 months , or shipment has occurred but revenue has not been recognized ; and ( 2 ) contractual service revenue and maintenance fees to be earned within the next 12 months .
backlog by reportable segment as of october 25 , 2015 and october 26 , 2014 was as follows : 2015 2014 ( in millions , except percentages ) .

                                   | 2015   | 2014           |        | ( in millions except percentages )
---------------------------------- | ------ | -------------- | ------ | ----------------------------------
silicon systems                    | $ 1720 | 55% ( 55 % )   | $ 1400 | 48% ( 48 % )
applied global services            | 812    | 26% ( 26 % )   | 775    | 27% ( 27 % )
display                            | 525    | 16% ( 16 % )   | 593    | 20% ( 20 % )
energy and environmental solutions | 85     | 3% ( 3 % )     | 149    | 5% ( 5 % )
total                              | $ 3142 | 100% ( 100 % ) | $ 2917 | 100% ( 100 % )

applied 2019s backlog on any particular date is not necessarily indicative of actual sales for any future periods , due to the potential for customer changes in delivery schedules or order cancellations .
customers may delay delivery of products or cancel orders prior to shipment , subject to possible cancellation penalties .
delays in delivery schedules or a reduction of backlog during any particular period could have a material adverse effect on applied 2019s business and results of operations .
manufacturing , raw materials and supplies applied 2019s manufacturing activities consist primarily of assembly , test and integration of various proprietary and commercial parts , components and subassemblies that are used to manufacture systems .
applied has implemented a distributed manufacturing model under which manufacturing and supply chain activities are conducted in various countries , including germany , israel , italy , singapore , taiwan , the united states and other countries in asia .
applied uses numerous vendors , including contract manufacturers , to supply parts and assembly services for the manufacture and support of its products , including some systems being completed at customer sites .
although applied makes reasonable efforts to assure that parts are available from multiple qualified suppliers , this is not always possible .
accordingly , some key parts may be obtained from only a single supplier or a limited group of suppliers .
applied seeks to reduce costs and to lower the risks of manufacturing and service interruptions by selecting and qualifying alternate suppliers for key parts ; monitoring the financial condition of key suppliers ; maintaining appropriate inventories of key parts ; qualifying new parts on a timely basis ; and ensuring quality and performance of parts.


cases ; ( ii ) management is unable to estimate the possible loss or range of loss that could result from an unfavorable outcome in any of the pending tobacco-related cases ; and ( iii ) accordingly , management has not provided any amounts in the consolidated financial statements for unfavorable outcomes , if any .
legal defense costs are expensed as incurred .
altria group , inc .
and its subsidiaries have achieved substantial success in managing litigation .
nevertheless , litigation is subject to uncertainty and significant challenges remain .
it is possible that the consolidated results of operations , cash flows or financial position of altria group , inc. , or one or more of its subsidiaries , could be materially affected in a particular fiscal quarter or fiscal year by an unfavorable outcome or settlement of certain pending litigation .
altria group , inc .
and each of its subsidiaries named as a defendant believe , and each has been so advised by counsel handling the respective cases , that it has valid defenses to the litigation pending against it , as well as valid bases for appeal of adverse verdicts .
each of the companies has defended , and will continue to defend , vigorously against litigation challenges .
however , altria group , inc .
and its subsidiaries may enter into settlement discussions in particular cases if they believe it is in the best interests of altria group , inc .
to do so .
overview of altria group , inc .
and/or pm usa tobacco-related litigation types and number of cases : claims related to tobacco products generally fall within the following categories : ( i ) smoking and health cases alleging personal injury brought on behalf of individual plaintiffs ; ( ii ) smoking and health cases primarily alleging personal injury or seeking court- supervised programs for ongoing medical monitoring and purporting to be brought on behalf of a class of individual plaintiffs , including cases in which the aggregated claims of a number of individual plaintiffs are to be tried in a single proceeding ; ( iii ) health care cost recovery cases brought by governmental ( both domestic and foreign ) plaintiffs seeking reimbursement for health care expenditures allegedly caused by cigarette smoking and/or disgorgement of profits ; ( iv ) class action suits alleging that the uses of the terms 201clights 201d and 201cultra lights 201d constitute deceptive and unfair trade practices , common law or statutory fraud , unjust enrichment , breach of warranty or violations of the racketeer influenced and corrupt organizations act ( 201crico 201d ) ; and ( v ) other tobacco- related litigation described below .
plaintiffs 2019 theories of recovery and the defenses raised in pending smoking and health , health care cost recovery and 201clights/ultra lights 201d cases are discussed below .
the table below lists the number of certain tobacco-related cases pending in the united states against pm usa and , in some instances , altria group , inc .
as of december 31 , 2014 , december 31 , 2013 and december 31 , 2012 .
type of case number of cases pending as of december 31 , 2014 number of cases pending as of december 31 , 2013 number of cases pending as of december 31 , 2012 individual smoking and health cases ( 1 ) 67 67 77 smoking and health class actions and aggregated claims litigation ( 2 ) 5 6 7 health care cost recovery actions ( 3 ) 1 1 1 .

type of case                                                            | number of casespending as ofdecember 31 2014 | number of casespending as ofdecember 31 2013 | number of casespending as ofdecember 31 2012
----------------------------------------------------------------------- | -------------------------------------------- | -------------------------------------------- | --------------------------------------------
individual smoking and health cases ( 1 )                               | 67                                           | 67                                           | 77
smoking and health class actions and aggregated claims litigation ( 2 ) | 5                                            | 6                                            | 7
health care cost recovery actions ( 3 )                                 | 1                                            | 1                                            | 1
201clights/ultra lights 201d class actions                              | 12                                           | 15                                           | 14

( 1 ) does not include 2558 cases brought by flight attendants seeking compensatory damages for personal injuries allegedly caused by exposure to environmental tobacco smoke ( 201cets 201d ) .
the flight attendants allege that they are members of an ets smoking and health class action in florida , which was settled in 1997 ( broin ) .
the terms of the court-approved settlement in that case allow class members to file individual lawsuits seeking compensatory damages , but prohibit them from seeking punitive damages .
also , does not include individual smoking and health cases brought by or on behalf of plaintiffs in florida state and federal courts following the decertification of the engle case ( discussed below in smoking and health litigation - engle class action ) .
( 2 ) includes as one case the 600 civil actions ( of which 346 were actions against pm usa ) that were to be tried in a single proceeding in west virginia ( in re : tobacco litigation ) .
the west virginia supreme court of appeals has ruled that the united states constitution did not preclude a trial in two phases in this case .
issues related to defendants 2019 conduct and whether punitive damages are permissible were tried in the first phase .
trial in the first phase of this case began in april 2013 .
in may 2013 , the jury returned a verdict in favor of defendants on the claims for design defect , negligence , failure to warn , breach of warranty , and concealment and declined to find that the defendants 2019 conduct warranted punitive damages .
plaintiffs prevailed on their claim that ventilated filter cigarettes should have included use instructions for the period 1964 - 1969 .
the second phase , if any , will consist of individual trials to determine liability and compensatory damages on that claim only .
in august 2013 , the trial court denied all post-trial motions .
the trial court entered final judgment in october 2013 and , in november 2013 , plaintiffs filed their notice of appeal to the west virginia supreme court of appeals .
on november 3 , 2014 , the west virginia supreme court of appeals affirmed the final judgment .
plaintiffs filed a petition for rehearing with the west virginia supreme court of appeals , which the court denied on january 8 , 2015 .
( 3 ) see health care cost recovery litigation - federal government 2019s lawsuit below .
altria group , inc .
and subsidiaries notes to consolidated financial statements _________________________ altria_mdc_2014form10k_nolinks_crops.pdf 68 2/25/15 5:56 pm


notes to consolidated financial statements ( continued ) | 72 snap-on incorporated following is a reconciliation of the beginning and ending amount of unrecognized tax benefits : ( amounts in millions ) amount .

( amounts in millions )                                  | amount
-------------------------------------------------------- | ------------
unrecognized tax benefits as of december 31 2006         | $ 21.3
gross increases 2013 tax positions in prior periods      | 0.5
gross decreases 2013 tax positions in prior periods      | -0.4 ( 0.4 )
gross increases 2013 tax positions in the current period | 0.5
settlements with taxing authorities                      | -3.0 ( 3.0 )
lapsing of statutes of limitations                       | -0.2 ( 0.2 )
unrecognized tax benefits as of december 29 2007         | $ 18.7

of the $ 18.7 million of unrecognized tax benefits at the end of 2007 , approximately $ 16.2 million would impact the effective income tax rate if recognized .
interest and penalties related to unrecognized tax benefits are recorded in income tax expense .
during the years ended december 29 , 2007 , december 30 , 2006 , and december 31 , 2005 , the company recognized approximately $ 1.2 million , $ 0.5 million and ( $ 0.5 ) million in net interest expense ( benefit ) , respectively .
the company has provided for approximately $ 3.4 million , $ 2.2 million , and $ 1.7 million of accrued interest related to unrecognized tax benefits at the end of fiscal year 2007 , 2006 and 2005 , respectively .
during the next 12 months , the company does not anticipate any significant changes to the total amount of unrecognized tax benefits , other than the accrual of additional interest expense in an amount similar to the prior year 2019s expense .
with few exceptions , snap-on is no longer subject to u.s .
federal and state/local income tax examinations by tax authorities for years prior to 2003 , and snap-on is no longer subject to non-u.s .
income tax examinations by tax authorities for years prior to 2001 .
the undistributed earnings of all non-u.s .
subsidiaries totaled $ 338.5 million , $ 247.4 million and $ 173.6 million at the end of fiscal 2007 , 2006 and 2005 , respectively .
snap-on has not provided any deferred taxes on these undistributed earnings as it considers the undistributed earnings to be permanently invested .
determination of the amount of unrecognized deferred income tax liability related to these earnings is not practicable .
the american jobs creation act of 2004 ( the 201cajca 201d ) created a one-time tax incentive for u.s .
corporations to repatriate accumulated foreign earnings by providing a tax deduction of 85% ( 85 % ) of qualifying dividends received from foreign affiliates .
under the provisions of the ajca , snap-on repatriated approximately $ 93 million of qualifying dividends in 2005 that resulted in additional income tax expense of $ 3.3 million for the year .
note 9 : short-term and long-term debt notes payable and long-term debt as of december 29 , 2007 , was $ 517.9 million ; no commercial paper was outstanding at december 29 , 2007 .
as of december 30 , 2006 , notes payable and long-term debt was $ 549.2 million , including $ 314.9 million of commercial paper .
snap-on presented $ 300 million of the december 30 , 2006 , outstanding commercial paper as 201clong-term debt 201d on the accompanying december 30 , 2006 , consolidated balance sheet .
on january 12 , 2007 , snap-on sold $ 300 million of unsecured notes consisting of $ 150 million of floating rate notes that mature on january 12 , 2010 , and $ 150 million of fixed rate notes that mature on january 15 , 2017 .
interest on the floating rate notes accrues at a rate equal to the three-month london interbank offer rate plus 0.13% ( 0.13 % ) per year and is payable quarterly .
interest on the fixed rate notes accrues at a rate of 5.50% ( 5.50 % ) per year and is payable semi-annually .
snap-on used the proceeds from the sale of the notes , net of $ 1.5 million of transaction costs , to repay commercial paper obligations issued to finance the acquisition of business solutions .
on january 12 , 2007 , the company also terminated a $ 250 million bridge credit agreement that snap-on established prior to its acquisition of business solutions.


proportional free cash flow ( a non-gaap measure ) we define proportional free cash flow as cash flows from operating activities less maintenance capital expenditures ( including non-recoverable environmental capital expenditures ) , adjusted for the estimated impact of noncontrolling interests .
the proportionate share of cash flows and related adjustments attributable to noncontrolling interests in our subsidiaries comprise the proportional adjustment factor presented in the reconciliation below .
upon the company's adoption of the accounting guidance for service concession arrangements effective january 1 , 2015 , capital expenditures related to service concession assets that would have been classified as investing activities on the consolidated statement of cash flows are now classified as operating activities .
see note 1 2014general and summary of significant accounting policies of this form 10-k for further information on the adoption of this guidance .
beginning in the quarter ended march 31 , 2015 , the company changed the definition of proportional free cash flow to exclude the cash flows for capital expenditures related to service concession assets that are now classified within net cash provided by operating activities on the consolidated statement of cash flows .
the proportional adjustment factor for these capital expenditures is presented in the reconciliation below .
we also exclude environmental capital expenditures that are expected to be recovered through regulatory , contractual or other mechanisms .
an example of recoverable environmental capital expenditures is ipl's investment in mats-related environmental upgrades that are recovered through a tracker .
see item 1 . 2014us sbu 2014ipl 2014environmental matters for details of these investments .
the gaap measure most comparable to proportional free cash flow is cash flows from operating activities .
we believe that proportional free cash flow better reflects the underlying business performance of the company , as it measures the cash generated by the business , after the funding of maintenance capital expenditures , that may be available for investing or repaying debt or other purposes .
factors in this determination include the impact of noncontrolling interests , where aes consolidates the results of a subsidiary that is not wholly-owned by the company .
the presentation of free cash flow has material limitations .
proportional free cash flow should not be construed as an alternative to cash from operating activities , which is determined in accordance with gaap .
proportional free cash flow does not represent our cash flow available for discretionary payments because it excludes certain payments that are required or to which we have committed , such as debt service requirements and dividend payments .
our definition of proportional free cash flow may not be comparable to similarly titled measures presented by other companies .
calculation of proportional free cash flow ( in millions ) 2015 2014 2013 2015/2014change 2014/2013 change .

calculation of proportional free cash flow ( in millions )                             | 2015         | 2014         | 2013         | 2015/2014 change | 2014/2013 change
-------------------------------------------------------------------------------------- | ------------ | ------------ | ------------ | ---------------- | ----------------
net cash provided by operating activities                                              | $ 2134       | $ 1791       | $ 2715       | $ 343            | $ -924 ( 924 )
add : capital expenditures related to service concession assets ( 1 )                  | 165          | 2014         | 2014         | 165              | 2014
adjusted operating cash flow                                                           | 2299         | 1791         | 2715         | 508              | -924 ( 924 )
less : proportional adjustment factor on operating cash activities ( 2 ) ( 3 )         | -558 ( 558 ) | -359 ( 359 ) | -834 ( 834 ) | -199 ( 199 )     | 475
proportional adjusted operating cash flow                                              | 1741         | 1432         | 1881         | 309              | -449 ( 449 )
less : proportional maintenance capital expenditures net of reinsurance proceeds ( 2 ) | -449 ( 449 ) | -485 ( 485 ) | -535 ( 535 ) | 36               | 50
less : proportional non-recoverable environmental capital expenditures ( 2 ) ( 4 )     | -51 ( 51 )   | -56 ( 56 )   | -75 ( 75 )   | 5                | 19
proportional free cash flow                                                            | $ 1241       | $ 891        | $ 1271       | $ 350            | $ -380 ( 380 )

( 1 ) service concession asset expenditures excluded from proportional free cash flow non-gaap metric .
( 2 ) the proportional adjustment factor , proportional maintenance capital expenditures ( net of reinsurance proceeds ) and proportional non-recoverable environmental capital expenditures are calculated by multiplying the percentage owned by noncontrolling interests for each entity by its corresponding consolidated cash flow metric and are totaled to the resulting figures .
for example , parent company a owns 20% ( 20 % ) of subsidiary company b , a consolidated subsidiary .
thus , subsidiary company b has an 80% ( 80 % ) noncontrolling interest .
assuming a consolidated net cash flow from operating activities of $ 100 from subsidiary b , the proportional adjustment factor for subsidiary b would equal $ 80 ( or $ 100 x 80% ( 80 % ) ) .
the company calculates the proportional adjustment factor for each consolidated business in this manner and then sums these amounts to determine the total proportional adjustment factor used in the reconciliation .
the proportional adjustment factor may differ from the proportion of income attributable to noncontrolling interests as a result of ( a ) non-cash items which impact income but not cash and ( b ) aes' ownership interest in the subsidiary where such items occur .
( 3 ) includes proportional adjustment amount for service concession asset expenditures of $ 84 million for the year ended december 31 , 2015 .
the company adopted service concession accounting effective january 1 , 2015 .
( 4 ) excludes ipl's proportional recoverable environmental capital expenditures of $ 205 million , $ 163 million and $ 110 million for the years december 31 , 2015 , 2014 and 2013 , respectively.


9 .
junior subordinated debt securities payable in accordance with the provisions of the junior subordinated debt securities which were issued on march 29 , 2004 , holdings elected to redeem the $ 329897 thousand of 6.2% ( 6.2 % ) junior subordinated debt securities outstanding on may 24 , 2013 .
as a result of the early redemption , the company incurred pre-tax expense of $ 7282 thousand related to the immediate amortization of the remaining capitalized issuance costs on the trust preferred securities .
interest expense incurred in connection with these junior subordinated debt securities is as follows for the periods indicated: .

( dollars in thousands )  | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012
------------------------- | ------------------------------ | ------------------------------ | ------------------------------
interest expense incurred | $ -                            | $ 8181                         | $ 20454

holdings considered the mechanisms and obligations relating to the trust preferred securities , taken together , constituted a full and unconditional guarantee by holdings of capital trust ii 2019s payment obligations with respect to their trust preferred securities .
10 .
reinsurance and trust agreements certain subsidiaries of group have established trust agreements , which effectively use the company 2019s investments as collateral , as security for assumed losses payable to certain non-affiliated ceding companies .
at december 31 , 2014 , the total amount on deposit in trust accounts was $ 322285 thousand .
on april 24 , 2014 , the company entered into two collateralized reinsurance agreements with kilimanjaro re limited ( 201ckilimanjaro 201d ) , a bermuda based special purpose reinsurer , to provide the company with catastrophe reinsurance coverage .
these agreements are multi-year reinsurance contracts which cover specified named storm and earthquake events .
the first agreement provides up to $ 250000 thousand of reinsurance coverage from named storms in specified states of the southeastern united states .
the second agreement provides up to $ 200000 thousand of reinsurance coverage from named storms in specified states of the southeast , mid-atlantic and northeast regions of the united states and puerto rico as well as reinsurance coverage from earthquakes in specified states of the southeast , mid-atlantic , northeast and west regions of the united states , puerto rico and british columbia .
on november 18 , 2014 , the company entered into a collateralized reinsurance agreement with kilimanjaro re to provide the company with catastrophe reinsurance coverage .
this agreement is a multi-year reinsurance contract which covers specified earthquake events .
the agreement provides up to $ 500000 thousand of reinsurance coverage from earthquakes in the united states , puerto rico and canada .
kilimanjaro has financed the various property catastrophe reinsurance coverage by issuing catastrophe bonds to unrelated , external investors .
on april 24 , 2014 , kilimanjaro issued $ 450000 thousand of variable rate notes ( 201cseries 2014-1 notes 201d ) .
on november 18 , 2014 , kilimanjaro issued $ 500000 thousand of variable rate notes ( 201cseries 2014-2 notes 201d ) .
the proceeds from the issuance of the series 2014-1 notes and the series 2014-2 notes are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in us government money market funds with a rating of at least 201caaam 201d by standard & poor 2019s.


pro forma financial information the following pro forma consolidated condensed financial results of operations are presented as if the acquisition of the valves & controls business occurred on october 1 , 2015 .
the pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time. .

                                                            | 2016    | 2017
----------------------------------------------------------- | ------- | -----
net sales                                                   | $ 16201 | 16112
net earnings from continuing operations common stockholders | $ 1482  | 1692
diluted earnings per share from continuing operations       | $ 2.28  | 2.62

the pro forma results for 2016 were adjusted to include first year acquisition accounting charges related to inventory and backlog of $ 122 in 2017 .
the pro forma 2016 results also include acquisition costs of $ 52 , while the 2017 pro forma results were adjusted to exclude these charges .
on october 2 , 2017 , the company sold its residential storage business for $ 200 in cash , subject to post-closing adjustments , and expects to recognize a loss of approximately $ 40 in 2018 due to income taxes resulting from nondeductible goodwill .
the company expects to realize approximately $ 140 in after-tax cash proceeds from the sale .
this business , with sales of $ 298 and pretax earnings of $ 15 in 2017 , is a leader in home organization and storage systems , and was reported within the tools & home products segment .
assets and liabilities were classified as held-for-sale as of september 30 , 2017 .
the company acquired six businesses in 2016 , four in automation solutions and two in climate technologies .
total cash paid for these businesses was $ 132 , net of cash acquired .
annualized sales for these businesses were approximately $ 51 in 2016 .
the company recognized goodwill of $ 83 ( $ 27 of which is expected to be tax deductible ) and other identifiable intangible assets of $ 50 , primarily customer relationships and intellectual property with a weighted-average life of approximately nine years .
the company completed eight acquisitions in 2015 , seven in automation solutions and one in tools & home products , which had combined annualized sales of approximately $ 115 .
total cash paid for all businesses was $ 324 , net of cash acquired .
the company recognized goodwill of $ 178 ( $ 42 of which is expected to be tax deductible ) and other intangible assets of $ 128 , primarily customer relationships and intellectual property with a weighted-average life of approximately ten years .
in january 2015 , the company completed the sale of its mechanical power transmission solutions business for $ 1.4 billion , and recognized a pretax gain from the transaction of $ 939 ( $ 532 after-tax , $ 0.78 per share ) .
assets and liabilities sold were as follows : current assets , $ 182 ( accounts receivable , inventories , other current assets ) ; other assets , $ 374 ( property , plant and equipment , goodwill , other noncurrent assets ) ; accrued expenses , $ 56 ( accounts payable , other current liabilities ) ; and other liabilities , $ 41 .
proceeds from the divestiture were used for share repurchase .
this business was previously reported in the former industrial automation segment , and had partial year sales in 2015 of $ 189 and related pretax earnings of $ 21 .
power transmission solutions designs and manufactures market-leading couplings , bearings , conveying components and gearing and drive components , and provides supporting services and solutions .
on september 30 , 2015 , the company sold its intermetro commercial storage business for $ 411 in cash and recognized a pretax gain from the transaction of $ 100 ( $ 79 after-tax , $ 0.12 per share ) .
this business had annual sales of $ 288 and pretax earnings of $ 42 in 2015 and was reported in the former commercial & residential solutions segment .
assets and liabilities sold were as follows : current assets , $ 62 ( accounts receivable , inventories , other current assets ) ; other assets , $ 292 ( property , plant and equipment , goodwill , other noncurrent assets ) ; current liabilities , $ 34 ( accounts payable , other current liabilities ) ; and other liabilities , $ 9 .
intermetro is a leading manufacturer and supplier of storage and transport products in the food service , commercial products and health care industries .
the results of operations of the acquired businesses discussed above have been included in the company 2019s consolidated results of operations since the respective dates of acquisition .
( 4 ) discontinued operations in 2017 , the company completed the previously announced strategic actions to streamline its portfolio and drive growth in its core businesses .
on november 30 , 2016 , the company completed the sale of its network power systems business for $ 4.0 billion in cash and retained a subordinated interest in distributions , contingent upon the equity holders first receiving a threshold return on their initial investment .
this business comprised the former network power segment .
additionally , on january 31 , 2017 , the company completed the sale of its power generation , motors and drives business for approximately $ 1.2 billion , subject to post-closing


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) a description of the company 2019s reporting units and the results of the related transitional impairment testing are as follows : verestar 2014verestar was a single segment and reporting unit until december 2002 , when the company committed to a plan to dispose of verestar .
the company recorded an impairment charge of $ 189.3 million relating to the impairment of goodwill in this reporting unit .
the fair value of this reporting unit was determined based on an independent third party appraisal .
network development services 2014as of january 1 , 2002 , the reporting units in the company 2019s network development services segment included kline , specialty constructors , galaxy , mts components and flash technologies .
the company estimated the fair value of these reporting units utilizing future discounted cash flows and market information as to the value of each reporting unit on january 1 , 2002 .
the company recorded an impairment charge of $ 387.8 million for the year ended december 31 , 2002 related to the impairment of goodwill within these reporting units .
such charge included full impairment for all of the goodwill within the reporting units except kline , for which only a partial impairment was recorded .
as discussed in note 2 , the assets of all of these reporting units were sold as of december 31 , 2003 , except for those of kline and our tower construction services unit , which were sold in march and november 2004 , respectively .
rental and management 2014the company obtained an independent third party appraisal of the rental and management reporting unit that contains goodwill and determined that goodwill was not impaired .
the company 2019s other intangible assets subject to amortization consist of the following as of december 31 , ( in thousands ) : .

                                                        | 2004               | 2003
------------------------------------------------------- | ------------------ | ------------------
acquired customer base and network location intangibles | $ 1369607          | $ 1299521
deferred financing costs                                | 89736              | 111484
acquired licenses and other intangibles                 | 43404              | 43125
total                                                   | 1502747            | 1454130
less accumulated amortization                           | -517444 ( 517444 ) | -434381 ( 434381 )
other intangible assets net                             | $ 985303           | $ 1019749

the company amortizes its intangible assets over periods ranging from three to fifteen years .
amortization of intangible assets for the years ended december 31 , 2004 and 2003 aggregated approximately $ 97.8 million and $ 94.6 million , respectively ( excluding amortization of deferred financing costs , which is included in interest expense ) .
the company expects to record amortization expense of approximately $ 97.8 million , $ 95.9 million , $ 92.0 million , $ 90.5 million and $ 88.8 million , respectively , for the years ended december 31 , 2005 , 2006 , 2007 , 2008 and 2009 , respectively .
5 .
notes receivable in 2000 , the company loaned tv azteca , s.a .
de c.v .
( tv azteca ) , the owner of a major national television network in mexico , $ 119.8 million .
the loan , which initially bore interest at 12.87% ( 12.87 % ) , payable quarterly , was discounted by the company , as the fair value interest rate at the date of the loan was determined to be 14.25% ( 14.25 % ) .
the loan was amended effective january 1 , 2003 to increase the original interest rate to 13.11% ( 13.11 % ) .
as of december 31 , 2004 , and 2003 , approximately $ 119.8 million undiscounted ( $ 108.2 million discounted ) under the loan was outstanding and included in notes receivable and other long-term assets in the accompanying consolidated balance sheets .
the term of the loan is seventy years ; however , the loan may be prepaid by tv


notes to consolidated financial statements 2014 ( continued ) the following table summarizes the changes in non-vested restricted stock awards for the year ended may 31 , 2009 ( share awards in thousands ) : share awards weighted average grant-date fair value .

                          | share awards | weighted average grant-date fair value
------------------------- | ------------ | --------------------------------------
non-vested at may 31 2007 | 278          | $ 37
granted                   | 400          | 38
vested                    | -136 ( 136 ) | 30
forfeited                 | -24 ( 24 )   | 40
non-vested at may 31 2008 | 518          | 39
granted                   | 430          | 43
vested                    | -159 ( 159 ) | 39
forfeited                 | -27 ( 27 )   | 41
non-vested at may 31 2009 | 762          | 42

the weighted average grant-date fair value of share awards granted in the years ended may 31 , 2008 and 2007 was $ 38 and $ 45 , respectively .
the total fair value of share awards vested during the years ended may 31 , 2009 , 2008 and 2007 was $ 6.2 million , $ 4.1 million and $ 1.7 million , respectively .
we recognized compensation expense for restricted stock of $ 9.0 million , $ 5.7 million , and $ 2.7 million in the years ended may 31 , 2009 , 2008 and 2007 .
as of may 31 , 2009 , there was $ 23.5 million of total unrecognized compensation cost related to unvested restricted stock awards that is expected to be recognized over a weighted average period of 2.9 years .
employee stock purchase plan we have an employee stock purchase plan under which the sale of 2.4 million shares of our common stock has been authorized .
employees may designate up to the lesser of $ 25000 or 20% ( 20 % ) of their annual compensation for the purchase of stock .
the price for shares purchased under the plan is 85% ( 85 % ) of the market value on the last day of the quarterly purchase period .
as of may 31 , 2009 , 0.8 million shares had been issued under this plan , with 1.6 million shares reserved for future issuance .
the weighted average grant-date fair value of each designated share purchased under this plan was $ 6 , $ 6 and $ 8 in the years ended may 31 , 2009 , 2008 and 2007 , respectively .
these values represent the fair value of the 15% ( 15 % ) discount .
note 12 2014segment information general information during fiscal 2009 , we began assessing our operating performance using a new segment structure .
we made this change as a result of our june 30 , 2008 acquisition of 51% ( 51 % ) of hsbc merchant services llp in the united kingdom , in addition to anticipated future international expansion .
beginning with the quarter ended august 31 , 2008 , the reportable segments are defined as north america merchant services , international merchant services , and money transfer .
the following tables reflect these changes and such reportable segments for fiscal years 2009 , 2008 , and 2007.


during 2015 , $ 82 million of provision recapture was recorded for purchased impaired loans compared to $ 91 million of provision recapture during 2014 .
charge-offs ( which were specifically for commercial loans greater than a defined threshold ) during 2015 were $ 12 million compared to $ 42 million during 2014 .
at december 31 , 2015 and december 31 , 2014 , the alll on total purchased impaired loans was $ .3 billion and $ .9 billion , respectively .
the decline in alll was primarily due to the change in our derecognition policy .
for purchased impaired loan pools where an allowance has been recognized , subsequent increases in the net present value of cash flows will result in a provision recapture of any previously recorded alll to the extent applicable , and/or a reclassification from non-accretable difference to accretable yield , which will be recognized prospectively .
individual loan transactions where final dispositions have occurred ( as noted above ) result in removal of the loans from their applicable pools for cash flow estimation purposes .
the cash flow re- estimation process is completed quarterly to evaluate the appropriateness of the alll associated with the purchased impaired loans .
activity for the accretable yield during 2015 and 2014 follows : table 66 : purchased impaired loans 2013 accretable yield .

in millions                                             | 2015         | 2014
------------------------------------------------------- | ------------ | ------------
january 1                                               | $ 1558       | $ 2055
accretion ( including excess cash recoveries )          | -466 ( 466 ) | -587 ( 587 )
net reclassifications to accretable from non-accretable | 226          | 208
disposals                                               | -68 ( 68 )   | -118 ( 118 )
december 31                                             | $ 1250       | $ 1558

note 5 allowances for loan and lease losses and unfunded loan commitments and letters of credit allowance for loan and lease losses we maintain the alll at levels that we believe to be appropriate to absorb estimated probable credit losses incurred in the portfolios as of the balance sheet date .
we use the two main portfolio segments 2013 commercial lending and consumer lending 2013 and develop and document the alll under separate methodologies for each of these segments as discussed in note 1 accounting policies .
a rollforward of the alll and associated loan data follows .
the pnc financial services group , inc .
2013 form 10-k 141


performance graph the graph below compares the cumulative total shareholder return on pmi's common stock with the cumulative total return for the same period of pmi's peer group and the s&p 500 index .
the graph assumes the investment of $ 100 as of december 31 , 2012 , in pmi common stock ( at prices quoted on the new york stock exchange ) and each of the indices as of the market close and reinvestment of dividends on a quarterly basis .
date pmi pmi peer group ( 1 ) s&p 500 index .

date             | pmi      | pmi peer group ( 1 ) | s&p 500 index
---------------- | -------- | -------------------- | -------------
december 31 2012 | $ 100.00 | $ 100.00             | $ 100.00
december 31 2013 | $ 108.50 | $ 122.80             | $ 132.40
december 31 2014 | $ 106.20 | $ 132.50             | $ 150.50
december 31 2015 | $ 120.40 | $ 143.50             | $ 152.60
december 31 2016 | $ 130.80 | $ 145.60             | $ 170.80
december 31 2017 | $ 156.80 | $ 172.70             | $ 208.10

( 1 ) the pmi peer group presented in this graph is the same as that used in the prior year , except reynolds american inc .
was removed following the completion of its acquisition by british american tobacco p.l.c .
on july 25 , 2017 .
the pmi peer group was established based on a review of four characteristics : global presence ; a focus on consumer products ; and net revenues and a market capitalization of a similar size to those of pmi .
the review also considered the primary international tobacco companies .
as a result of this review , the following companies constitute the pmi peer group : altria group , inc. , anheuser-busch inbev sa/nv , british american tobacco p.l.c. , the coca-cola company , colgate-palmolive co. , diageo plc , heineken n.v. , imperial brands plc , japan tobacco inc. , johnson & johnson , kimberly-clark corporation , the kraft-heinz company , mcdonald's corp. , mondel z international , inc. , nestl e9 s.a. , pepsico , inc. , the procter & gamble company , roche holding ag , and unilever nv and plc .
note : figures are rounded to the nearest $ 0.10.