r&d expense increased 36% ( 36 % ) during 2011 compared to 2010 , it declined slightly as a percentage of net sales , due to the 66% ( 66 % ) year-over-year growth in the company 2019s net sales during 2011 .
r&d expense increased 34% ( 34 % ) or $ 449 million to $ 1.8 billion in 2010 compared to 2009 .
this increase was due primarily to an increase in headcount and related expenses in the current year to support expanded r&d activities .
also contributing to this increase in r&d expense in 2010 was the capitalization in 2009 of software development costs of $ 71 million related to mac os x snow leopard .
although total r&d expense increased 34% ( 34 % ) during 2010 , it declined as a percentage of net sales given the 52% ( 52 % ) year-over-year increase in net sales in the company continues to believe that focused investments in r&d are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the company 2019s core business strategy .
as such , the company expects to make further investments in r&d to remain competitive .
selling , general and administrative expense ( 201csg&a 201d ) sg&a expense increased $ 2.1 billion or 38% ( 38 % ) to $ 7.6 billion during 2011 compared to 2010 .
this increase was due primarily to the company 2019s continued expansion of its retail segment , increased headcount and related costs , higher spending on professional services and marketing and advertising programs , and increased variable costs associated with the overall growth of the company 2019s net sales .
sg&a expense increased $ 1.4 billion or 33% ( 33 % ) to $ 5.5 billion in 2010 compared to 2009 .
this increase was due primarily to the company 2019s continued expansion of its retail segment , higher spending on marketing and advertising programs , increased share-based compensation expenses and variable costs associated with the overall growth of the company 2019s net sales .
other income and expense other income and expense for the three years ended september 24 , 2011 , are as follows ( in millions ) : .

                               | 2011         | 2010         | 2009
------------------------------ | ------------ | ------------ | ----------
interest and dividend income   | $ 519        | $ 311        | $ 407
other expense net              | -104 ( 104 ) | -156 ( 156 ) | -81 ( 81 )
total other income and expense | $ 415        | $ 155        | $ 326

total other income and expense increased $ 260 million or 168% ( 168 % ) to $ 415 million during 2011 compared to $ 155 million and $ 326 million in 2010 and 2009 , respectively .
the year-over-year increase in other income and expense during 2011 was due primarily to higher interest income and net realized gains on sales of marketable securities .
the overall decrease in other income and expense in 2010 compared to 2009 was attributable to the significant declines in interest rates on a year-over-year basis , partially offset by the company 2019s higher cash , cash equivalents and marketable securities balances .
additionally the company incurred higher premium expenses on its foreign exchange option contracts , which further reduced the total other income and expense .
the weighted average interest rate earned by the company on its cash , cash equivalents and marketable securities was 0.77% ( 0.77 % ) , 0.75% ( 0.75 % ) and 1.43% ( 1.43 % ) during 2011 , 2010 and 2009 , respectively .
during 2011 , 2010 and 2009 , the company had no debt outstanding and accordingly did not incur any related interest expense .
provision for income taxes the company 2019s effective tax rates were approximately 24.2% ( 24.2 % ) , 24.4% ( 24.4 % ) and 31.8% ( 31.8 % ) for 2011 , 2010 and 2009 , respectively .
the company 2019s effective rates for these periods differ from the statutory federal income tax rate of


part ii , item 8 fourth quarter of 2007 : 0160 schlumberger sold certain workover rigs for $ 32 million , resulting in a pretax gain of $ 24 million ( $ 17 million after-tax ) which is classified in interest and other income , net in the consolidated statement of income .
4 .
acquisitions acquisition of eastern echo holding plc on december 10 , 2007 , schlumberger completed the acquisition of eastern echo holding plc ( 201ceastern echo 201d ) for $ 838 million in cash .
eastern echo was a dubai-based marine seismic company that did not have any operations at the time of acquisition , but had signed contracts for the construction of six seismic vessels .
the purchase price has been allocated to the net assets acquired based upon their estimated fair values as follows : ( stated in millions ) .

cash and short-term investments           | $ 266
----------------------------------------- | ------------
other current assets                      | 23
fixed income investments held to maturity | 54
vessels under construction                | 694
accounts payable and accrued liabilities  | -17 ( 17 )
long-term debt                            | -182 ( 182 )
total purchase price                      | $ 838

other acquisitions schlumberger has made other acquisitions and minority interest investments , none of which were significant on an individual basis , for cash payments , net of cash acquired , of $ 514 million during 2009 , $ 345 million during 2008 , and $ 281 million during 2007 .
pro forma results pertaining to the above acquisitions are not presented as the impact was not significant .
5 .
drilling fluids joint venture the mi-swaco drilling fluids joint venture is owned 40% ( 40 % ) by schlumberger and 60% ( 60 % ) by smith international , inc .
schlumberger records income relating to this venture using the equity method of accounting .
the carrying value of schlumberger 2019s investment in the joint venture on december 31 , 2009 and 2008 was $ 1.4 billion and $ 1.3 billion , respectively , and is included within investments in affiliated companies on the consolidated balance sheet .
schlumberger 2019s equity income from this joint venture was $ 131 million in 2009 , $ 210 million in 2008 and $ 178 million in 2007 .
schlumberger received cash distributions from the joint venture of $ 106 million in 2009 , $ 57 million in 2008 and $ 46 million in 2007 .
the joint venture agreement contains a provision under which either party to the joint venture may offer to sell its entire interest in the venture to the other party at a cash purchase price per percentage interest specified in an offer notice .
if the offer to sell is not accepted , the offering party will be obligated to purchase the entire interest of the other party at the same price per percentage interest as the prices specified in the offer notice.


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 compensation survey group and the s&p 500 index .
the graph assumes the investment of $ 100 as of december 31 , 2010 , 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 compensation survey group ( 12 ) s&p 500 index .

date             | pmi      | pmi compensation survey group ( 12 ) | s&p 500 index
---------------- | -------- | ------------------------------------ | -------------
december 31 2010 | $ 100.00 | $ 100.00                             | $ 100.00
december 31 2011 | $ 139.80 | $ 114.10                             | $ 102.10
december 31 2012 | $ 154.60 | $ 128.00                             | $ 118.50
december 31 2013 | $ 167.70 | $ 163.60                             | $ 156.80
december 31 2014 | $ 164.20 | $ 170.10                             | $ 178.30
december 31 2015 | $ 186.20 | $ 179.20                             | $ 180.80

( 1 ) the pmi compensation survey group consists of the following companies with substantial global sales that are direct competitors ; or have similar market capitalization ; or are primarily focused on consumer products ( excluding high technology and financial services ) ; and are companies for which comparative executive compensation data are readily available : bayer ag , british american tobacco p.l.c. , the coca-cola company , diageo plc , glaxosmithkline , heineken n.v. , imperial brands plc ( formerly , imperial tobacco group plc ) , johnson & johnson , mcdonald's corp. , international , inc. , nestl e9 s.a. , novartis ag , pepsico , inc. , pfizer inc. , roche holding ag , unilever nv and plc and vodafone group plc .
( 2 ) on october 1 , 2012 , international , inc .
( nasdaq : mdlz ) , formerly kraft foods inc. , announced that it had completed the spin-off of its north american grocery business , kraft foods group , inc .
( nasdaq : krft ) .
international , inc .
was retained in the pmi compensation survey group index because of its global footprint .
the pmi compensation survey group index total cumulative return calculation weights international , inc.'s total shareholder return at 65% ( 65 % ) of historical kraft foods inc.'s market capitalization on december 31 , 2010 , based on international , inc.'s initial market capitalization relative to the combined market capitalization of international , inc .
and kraft foods group , inc .
on october 2 , 2012 .
note : figures are rounded to the nearest $ 0.10.


a black-scholes option-pricing model was used for purposes of estimating the fair value of state street 2019s employee stock options at the grant date .
the following were the weighted average assumptions for the years ended december 31 , 2001 , 2000 and 1999 , respectively : risk-free interest rates of 3.99% ( 3.99 % ) , 5.75% ( 5.75 % ) and 5.90% ( 5.90 % ) ; dividend yields of 1.08% ( 1.08 % ) , .73% ( .73 % ) and .92% ( .92 % ) ; and volatility factors of the expected market price of state street common stock of .30 , .30 and .30 .
the estimated weighted average life of the stock options granted was 4.1 years for the years ended december 31 , 2001 , 2000 and 1999 .
o t h e r u n r e a l i z e d c o m p r e h e n s i v e i n c o m e ( l o s s ) at december 31 , the components of other unrealized comprehensive income ( loss ) , net of related taxes , were as follows: .

( dollars in millions )                          | 2001       | 2000
------------------------------------------------ | ---------- | ----------
unrealized gain on available-for-sale securities | $ 96       | $ 19
foreign currency translation                     | -27 ( 27 ) | -20 ( 20 )
other                                            | 1          |
total                                            | $ 70       | $ -1 ( 1 )

note j shareholders 2019 rights plan in 1988 , state street declared a dividend of one preferred share purchase right for each outstanding share of common stock .
in 1998 , the rights agreement was amended and restated , and in 2001 , the rights plan was impacted by the 2-for-1 stock split .
accordingly , a right may be exercised , under certain conditions , to purchase one eight-hundredths share of a series of participating preferred stock at an exercise price of $ 132.50 , subject to adjustment .
the rights become exercisable if a party acquires or obtains the right to acquire 10% ( 10 % ) or more of state street 2019s common stock or after commencement or public announcement of an offer for 10% ( 10 % ) or more of state street 2019s common stock .
when exercisable , under certain conditions , each right entitles the holder thereof to purchase shares of common stock , of either state street or of the acquirer , having a market value of two times the then-current exercise price of that right .
the rights expire in september 2008 , and may be redeemed at a price of $ .00125 per right , subject to adjustment , at any time prior to expiration or the acquisition of 10% ( 10 % ) of state street 2019s common stock .
under certain circumstances , the rights may be redeemed after they become exercisable and may be subject to automatic redemption .
note k regulatory matters r e g u l a t o r y c a p i t a l state street is subject to various regulatory capital requirements administered by federal banking agencies .
failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that , if undertaken , could have a direct material effect on state street 2019s financial condition .
under capital adequacy guidelines , state street must meet specific capital guidelines that involve quantitative measures of state street 2019s assets , liabilities and off-balance sheet items as calculated under regulatory accounting practices .
state street 2019s capital amounts and classification are subject to qualitative judgments by the regulators about components , risk weightings and other factors .
42 state street corporation


performance of the company 2019s obligations under the senior notes , including any repurchase obligations resulting from a change of control , is unconditionally guaranteed , jointly and severally , on an unsecured basis , by each of hii 2019s existing and future domestic restricted subsidiaries that guarantees debt under the credit facility ( the 201csubsidiary guarantors 201d ) .
the guarantees rank equally with all other unsecured and unsubordinated indebtedness of the guarantors .
the subsidiary guarantors are each directly or indirectly 100% ( 100 % ) owned by hii .
there are no significant restrictions on the ability of hii or any subsidiary guarantor to obtain funds from their respective subsidiaries by dividend or loan .
mississippi economic development revenue bonds 2014as of december 31 , 2011 and 2010 , the company had $ 83.7 million outstanding from the issuance of industrial revenue bonds issued by the mississippi business finance corporation .
these bonds accrue interest at a fixed rate of 7.81% ( 7.81 % ) per annum ( payable semi-annually ) and mature in 2024 .
while repayment of principal and interest is guaranteed by northrop grumman systems corporation , hii has agreed to indemnify northrop grumman systems corporation for any losses related to the guaranty .
in accordance with the terms of the bonds , the proceeds have been used to finance the construction , reconstruction , and renovation of the company 2019s interest in certain ship manufacturing and repair facilities , or portions thereof , located in the state of mississippi .
gulf opportunity zone industrial development revenue bonds 2014as of december 31 , 2011 and 2010 , the company had $ 21.6 million outstanding from the issuance of gulf opportunity zone industrial development revenue bonds ( 201cgo zone irbs 201d ) issued by the mississippi business finance corporation .
the go zone irbs were initially issued in a principal amount of $ 200 million , and in november 2010 , in connection with the anticipated spin-off , hii purchased $ 178 million of the bonds using the proceeds from a $ 178 million intercompany loan from northrop grumman .
see note 20 : related party transactions and former parent company equity .
the remaining bonds accrue interest at a fixed rate of 4.55% ( 4.55 % ) per annum ( payable semi-annually ) , and mature in 2028 .
in accordance with the terms of the bonds , the proceeds have been used to finance the construction , reconstruction , and renovation of the company 2019s interest in certain ship manufacturing and repair facilities , or portions thereof , located in the state of mississippi .
the estimated fair value of the company 2019s total long-term debt , including current portions , at december 31 , 2011 and 2010 , was $ 1864 million and $ 128 million , respectively .
the fair value of the total long-term debt was calculated based on recent trades for most of the company 2019s debt instruments or based on interest rates prevailing on debt with substantially similar risks , terms and maturities .
the aggregate amounts of principal payments due on long-term debt for each of the next five years and thereafter are : ( $ in millions ) .

2012                 | $ 29
-------------------- | ------
2013                 | 50
2014                 | 79
2015                 | 108
2016                 | 288
thereafter           | 1305
total long-term debt | $ 1859

14 .
investigations , claims , and litigation the company is involved in legal proceedings before various courts and administrative agencies , and is periodically subject to government examinations , inquiries and investigations .
pursuant to fasb accounting standard codification 450 contingencies , the company has accrued for losses associated with investigations , claims and litigation when , and to the extent that , loss amounts related to the investigations , claims and litigation are probable and can be reasonably estimated .
the actual losses that might be incurred to resolve such investigations , claims and litigation may be higher or lower than the amounts accrued .
for matters where a material loss is probable or reasonably possible and the amount of loss cannot be reasonably estimated , but the company is able to reasonably estimate a range of possible losses , such estimated range is required to be disclosed in these notes .
this estimated range would be based on information currently available to the company and would involve elements of judgment and significant uncertainties .
this estimated range of possible loss would not represent the company 2019s maximum possible loss exposure .
for matters as to which the company is not able to reasonably estimate a possible loss or range of loss , the company is required to indicate the reasons why it is unable to estimate the possible loss or range of loss .
for matters not specifically described in these notes , the company does not believe , based on information currently available to it , that it is reasonably possible that the liabilities , if any , arising from


management 2019s discussion and analysis of financial condition and results of operations indemnification provisions : in addition , the company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial , intellectual property and divestiture agreements .
historically , the company has not made significant payments under these agreements , nor have there been significant claims asserted against the company .
however , there is an increasing risk in relation to intellectual property indemnities given the current legal climate .
in indemnification cases , payment by the company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract , which procedures typically allow the company to challenge the other party 2019s claims .
further , the company 2019s obligations under these agreements for indemnification based on breach of representations and warranties are generally limited in terms of duration , typically not more than 24 months , and for amounts not in excess of the contract value , and in some instances the company may have recourse against third parties for certain payments made by the company .
legal matters : the company is a defendant in various lawsuits , claims and actions , which arise in the normal course of business .
in the opinion of management , the ultimate disposition of these matters will not have a material adverse effect on the company 2019s consolidated financial position , liquidity or results of operations .
segment information the following commentary should be read in conjunction with the financial results of each operating business segment as detailed in note 12 , 2018 2018information by segment and geographic region , 2019 2019 to the company 2019s consolidated financial statements .
net sales and operating results for the company 2019s three operating business segments for 2009 , 2008 and 2007 are presented below .
mobile devices segment the mobile devices segment designs , manufactures , sells and services wireless handsets , including smartphones , with integrated software and accessory products , and licenses intellectual property .
in 2009 , the segment 2019s net sales represented 32% ( 32 % ) of the company 2019s consolidated net sales , compared to 40% ( 40 % ) in 2008 and 52% ( 52 % ) in 2007. .

( dollars in millions )     | years ended december 31 2009 | years ended december 31 2008 | years ended december 31 2007 | years ended december 31 2009 20142008 | 2008 20142007
--------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | ---------------
segment net sales           | $ 7146                       | $ 12099                      | $ 18988                      | ( 41 ) % (  % )                       | ( 36 ) % (  % )
operating earnings ( loss ) | -1077 ( 1077 )               | -2199 ( 2199 )               | -1201 ( 1201 )               | ( 51 ) % (  % )                       | 83% ( 83 % )

segment results 20142009 compared to 2008 in 2009 , the segment 2019s net sales were $ 7.1 billion , a decrease of 41% ( 41 % ) compared to net sales of $ 12.1 billion in 2008 .
the 41% ( 41 % ) decrease in net sales was primarily driven by a 45% ( 45 % ) decrease in unit shipments , partially offset by an 8% ( 8 % ) increase in average selling price ( 2018 2018asp 2019 2019 ) .
the segment 2019s net sales were negatively impacted by reduced product offerings in large market segments , particularly 3g products , including smartphones , and the segment 2019s limited product offerings in very low-tier products .
on a product technology basis , net sales decreased substantially for gsm , cdma and 3g technologies , partially offset by an increase in net sales for iden technology .
on a geographic basis , net sales decreased substantially in latin america , the europe , middle east and african region ( 2018 2018emea 2019 2019 ) and asia and , to a lesser extent , decreased in north america .
the segment incurred an operating loss of $ 1.1 billion in 2009 , an improvement of 51% ( 51 % ) compared to an operating loss of $ 2.2 billion in 2008 .
the decrease in the operating loss was primarily due to decreases in : ( i ) selling , general and administrative ( 2018 2018sg&a 2019 2019 ) expenses , primarily due to lower marketing expenses and savings from cost-reduction initiatives , ( ii ) research and development ( 2018 2018r&d 2019 2019 ) expenditures , reflecting savings from cost-reduction initiatives , ( iii ) lower excess inventory and other related charges in 2009 than in 2008 , when the charges included a $ 370 million charge due to a decision to consolidate software and silicon platforms , and ( iv ) the absence in 2009 of a comparable $ 150 million charge in 2008 related to settlement of a purchase commitment , partially offset by a decrease in gross margin , driven by the 41% ( 41 % ) decrease in net sales .
as a percentage of net sales in 2009 as compared to 2008 , gross margin and r&d expenditures increased and sg&a expenses decreased .
the segment 2019s industry typically experiences short life cycles for new products .
therefore , it is vital to the segment 2019s success that new , compelling products are continually introduced .
accordingly , a strong commitment to


page 15 of 100 shareholder return performance the line graph below compares the annual percentage change in ball corporation 2019s cumulative total shareholder return on its common stock with the cumulative total return of the dow jones containers & packaging index and the s&p composite 500 stock index for the five-year period ended december 31 , 2010 .
it assumes $ 100 was invested on december 31 , 2005 , and that all dividends were reinvested .
the dow jones containers & packaging index total return has been weighted by market capitalization .
total return analysis .

                                                                                | 12/31/05                                                                                | 12/31/06                                                                                | 12/31/07                                                                                | 12/31/08                                                                                | 12/31/09                                                                                | 12/31/10
------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------
ball corporation                                                                                | $ 100.00                                                                                | $ 110.86                                                                                | $ 115.36                                                                                | $ 107.58                                                                                | $ 134.96                                                                                | $ 178.93
dj containers & packaging index                                                                                | $ 100.00                                                                                | $ 112.09                                                                                | $ 119.63                                                                                | $ 75.00                                                                                | $ 105.34                                                                                | $ 123.56
s&p 500 index                                                                                | $ 100.00                                                                                | $ 115.80                                                                                | $ 122.16                                                                                | $ 76.96                                                                                | $ 97.33                                                                                | $ 111.99
copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm )
copyright a9 2011 dow jones & company . all rights reserved .                                                                                | copyright a9 2011 dow jones & company . all rights reserved .                                                                                | copyright a9 2011 dow jones & company . all rights reserved .                                                                                | copyright a9 2011 dow jones & company . all rights reserved .                                                                                | copyright a9 2011 dow jones & company . all rights reserved .                                                                                | copyright a9 2011 dow jones & company . all rights reserved .                                                                                | copyright a9 2011 dow jones & company . all rights reserved .


notes to consolidated financial statements of annual compensation was made .
for the years ended december 31 , 2009 , 2008 and , 2007 , we made matching contributions of approxi- mately $ 450000 , $ 503000 and $ 457000 , respectively .
note 17 / commitments and contingencies we and our operating partnership are not presently involved in any mate- rial litigation nor , to our knowledge , is any material litigation threatened against us or our properties , other than routine litigation arising in the ordinary course of business .
management believes the costs , if any , incurred by us and our operating partnership related to this litigation will not materially affect our financial position , operating results or liquidity .
we have entered into employment agreements with certain executives , which expire between june 2010 and january 2013 .
the minimum cash-based compensation , including base salary and guaran- teed bonus payments , associated with these employment agreements totals approximately $ 7.8 million for 2010 .
in march 1998 , we acquired an operating sub-leasehold posi- tion at 420 lexington avenue .
the operating sub-leasehold position required annual ground lease payments totaling $ 6.0 million and sub- leasehold position payments totaling $ 1.1 million ( excluding an operating sub-lease position purchased january 1999 ) .
in june 2007 , we renewed and extended the maturity date of the ground lease at 420 lexington avenue through december 31 , 2029 , with an option for further exten- sion through 2080 .
ground lease rent payments through 2029 will total approximately $ 10.9 million per year .
thereafter , the ground lease will be subject to a revaluation by the parties thereto .
in june 2009 , we acquired an operating sub-leasehold posi- tion at 420 lexington avenue for approximately $ 7.7 million .
these sub-leasehold positions were scheduled to mature in december 2029 .
in october 2009 , we acquired the remaining sub-leasehold position for $ 7.6 million .
the property located at 711 third avenue operates under an operating sub-lease , which expires in 2083 .
under the sub-lease , we are responsible for ground rent payments of $ 1.55 million annually through july 2011 on the 50% ( 50 % ) portion of the fee we do not own .
the ground rent is reset after july 2011 based on the estimated fair market value of the property .
we have an option to buy out the sub-lease at a fixed future date .
the property located at 461 fifth avenue operates under a ground lease ( approximately $ 2.1 million annually ) with a term expiration date of 2027 and with two options to renew for an additional 21 years each , followed by a third option for 15 years .
we also have an option to purchase the ground lease for a fixed price on a specific date .
the property located at 625 madison avenue operates under a ground lease ( approximately $ 4.6 million annually ) with a term expiration date of 2022 and with two options to renew for an additional 23 years .
the property located at 1185 avenue of the americas oper- ates under a ground lease ( approximately $ 8.5 million in 2010 and $ 6.9 million annually thereafter ) with a term expiration of 2020 and with an option to renew for an additional 23 years .
in april 1988 , the sl green predecessor entered into a lease agreement for the property at 673 first avenue , which has been capitalized for financial statement purposes .
land was estimated to be approximately 70% ( 70 % ) of the fair market value of the property .
the portion of the lease attributed to land is classified as an operating lease and the remainder as a capital lease .
the initial lease term is 49 years with an option for an additional 26 years .
beginning in lease years 11 and 25 , the lessor is entitled to additional rent as defined by the lease agreement .
we continue to lease the 673 first avenue property , which has been classified as a capital lease with a cost basis of $ 12.2 million and cumulative amortization of $ 5.5 million and $ 5.2 million at december 31 , 2009 and 2008 , respectively .
the following is a schedule of future minimum lease payments under capital leases and noncancellable operating leases with initial terms in excess of one year as of december 31 , 2009 ( in thousands ) : non-cancellable december 31 , capital lease operating leases .

december 31,                                | capital lease    | non-cancellable operating leases
------------------------------------------- | ---------------- | --------------------------------
2010                                        | $ 1451           | $ 31347
2011                                        | 1555             | 28929
2012                                        | 1555             | 28179
2013                                        | 1555             | 28179
2014                                        | 1555             | 28179
thereafter                                  | 45649            | 580600
total minimum lease payments                | 53320            | $ 725413
less amount representing interest           | -36437 ( 36437 ) |
present value of net minimum lease payments | $ 16883          |

note 18 / financial instruments : derivatives and hedging we recognize all derivatives on the balance sheet at fair value .
derivatives that are not hedges must be adjusted to fair value through income .
if a derivative is a hedge , depending on the nature of the hedge , changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset , liability , or firm commitment through earn- ings , or recognized in other comprehensive income until the hedged item is recognized in earnings .
the ineffective portion of a derivative 2019s change in fair value will be immediately recognized in earnings .
reported net income and stockholders 2019 equity may increase or decrease prospectively , depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items , but will have no effect on cash flows.


the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2018 , 2017 , and 2016 the following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the periods indicated ( in millions ) : .

                                            | 2018   | 2017  | 2016
------------------------------------------- | ------ | ----- | ------
balance at january 1                        | $ 348  | $ 352 | $ 364
additions for current year tax positions    | 2      | 2014  | 2
additions for tax positions of prior years  | 146    | 2     | 1
reductions for tax positions of prior years | ( 26 ) | ( 5 ) | ( 1 )
settlements                                 | 2014   | 2014  | ( 13 )
lapse of statute of limitations             | ( 7 )  | ( 1 ) | ( 1 )
balance at december 31                      | $ 463  | $ 348 | $ 352

the company and certain of its subsidiaries are currently under examination by the relevant taxing authorities for various tax years .
the company regularly assesses the potential outcome of these examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded .
while it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position , we believe we have appropriately accrued for our uncertain tax benefits .
however , audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits and the range of anticipated increases or decreases in unrecognized tax benefits are subject to significant uncertainty .
it is possible that the ultimate outcome of current or future examinations may exceed our provision for current unrecognized tax benefits in amounts that could be material , but cannot be estimated as of december 31 , 2018 .
our effective tax rate and net income in any given future period could therefore be materially impacted .
22 .
discontinued operations due to a portfolio evaluation in the first half of 2016 , management decided to pursue a strategic shift of its distribution companies in brazil , sul and eletropaulo , to reduce the company's exposure to the brazilian distribution market .
the disposals of sul and eletropaulo were completed in october 2016 and june 2018 , respectively .
eletropaulo 2014 in november 2017 , eletropaulo converted its preferred shares into ordinary shares and transitioned the listing of those shares to the novo mercado , which is a listing segment of the brazilian stock exchange with the highest standards of corporate governance .
upon conversion of the preferred shares into ordinary shares , aes no longer controlled eletropaulo , but maintained significant influence over the business .
as a result , the company deconsolidated eletropaulo .
after deconsolidation , the company's 17% ( 17 % ) ownership interest was reflected as an equity method investment .
the company recorded an after-tax loss on deconsolidation of $ 611 million , which primarily consisted of $ 455 million related to cumulative translation losses and $ 243 million related to pension losses reclassified from aocl .
in december 2017 , all the remaining criteria were met for eletropaulo to qualify as a discontinued operation .
therefore , its results of operations and financial position were reported as such in the consolidated financial statements for all periods presented .
in june 2018 , the company completed the sale of its entire 17% ( 17 % ) ownership interest in eletropaulo through a bidding process hosted by the brazilian securities regulator , cvm .
gross proceeds of $ 340 million were received at our subsidiary in brazil , subject to the payment of taxes .
upon disposal of eletropaulo , the company recorded a pre-tax gain on sale of $ 243 million ( after-tax $ 199 million ) .
excluding the gain on sale , eletropaulo's pre-tax loss attributable to aes was immaterial for the year ended december 31 , 2018 .
eletropaulo's pre-tax loss attributable to aes , including the loss on deconsolidation , for the years ended december 31 , 2017 and 2016 was $ 633 million and $ 192 million , respectively .
prior to its classification as discontinued operations , eletropaulo was reported in the south america sbu reportable segment .
sul 2014 the company executed an agreement for the sale of sul , a wholly-owned subsidiary , in june 2016 .
the results of operations and financial position of sul are reported as discontinued operations in the consolidated financial statements for all periods presented .
upon meeting the held-for-sale criteria , the company recognized an after-tax loss of $ 382 million comprised of a pre-tax impairment charge of $ 783 million , offset by a tax benefit of $ 266 million related to the impairment of the sul long lived assets and a tax benefit of $ 135 million for deferred taxes related to the investment in sul .
prior to the impairment charge , the carrying value of the sul asset group of $ 1.6 billion was greater than its approximate fair value less costs to sell .
however , the impairment charge was limited to the carrying value of the long lived assets of the sul disposal group.


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) 19 .
subsequent events 12.25% ( 12.25 % ) senior subordinated discount notes and warrants offering 2014in january 2003 , the company issued 808000 units , each consisting of ( 1 ) $ 1000 principal amount at maturity of the 12.25% ( 12.25 % ) senior subordinated discount notes due 2008 of a wholly owned subsidiary of the company ( ati notes ) and ( 2 ) a warrant to purchase 14.0953 shares of class a common stock of the company , for gross proceeds of $ 420.0 million .
the gross offering proceeds were allocated between the ati notes ( $ 367.4 million ) and the fair value of the warrants ( $ 52.6 million ) .
net proceeds from the offering aggregated approximately $ 397.0 million and were or will be used for the purposes described below under amended and restated loan agreement .
the ati notes accrue no cash interest .
instead , the accreted value of each ati note will increase between the date of original issuance and maturity ( august 1 , 2008 ) at a rate of 12.25% ( 12.25 % ) per annum .
the 808000 warrants that were issued together with the ati notes each represent the right to purchase 14.0953 shares of class a common stock at $ 0.01 per share .
the warrants are exercisable at any time on or after january 29 , 2006 and will expire on august 1 , 2008 .
as of the issuance date , the warrants represented approximately 5.5% ( 5.5 % ) of the company 2019s outstanding common stock ( assuming exercise of all warrants ) .
the indenture governing the ati notes contains covenants that , among other things , limit the ability of the issuer subsidiary and its guarantors to incur or guarantee additional indebtedness , create liens , pay dividends or make other equity distributions , enter into agreements restricting the restricted subsidiaries 2019 ability to pay dividends , purchase or redeem capital stock , make investments and sell assets or consolidate or merge with or into other companies .
the ati notes rank junior in right of payment to all existing and future senior indebtedness , including all indebtedness outstanding under the credit facilities , and are structurally senior in right of payment to all existing and future indebtedness of the company .
amended and restated loan agreement 2014on february 21 , 2003 , the company completed an amendment to its credit facilities .
the amendment provides for the following : 2022 prepayment of a portion of outstanding term loans .
the company agreed to prepay an aggregate of $ 200.0 million of the term loans outstanding under the credit facilities from a portion of the net proceeds of the ati notes offering completed in january 2003 .
this prepayment consisted of a $ 125.0 million prepayment of the term loan a and a $ 75.0 million prepayment of the term loan b , each to be applied to reduce future scheduled principal payments .
giving effect to the prepayment of $ 200.0 million of term loans under the credit facility and the issuance of the ati notes as discussed above as well as the paydown of debt from net proceeds of the sale of mtn ( $ 24.5 million in february 2003 ) , the company 2019s aggregate principal payments of long- term debt , including capital leases , for the next five years and thereafter are as follows ( in thousands ) : year ending december 31 .

2003       | $ 268496
---------- | ---------
2004       | 131262
2005       | 195082
2006       | 538479
2007       | 1065437
thereafter | 1408783
total      | $ 3607539


table of contents recoverability of goodwill is measured at the reporting unit level and begins with a qualitative assessment to determine if it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test prescribed by gaap .
for those reporting units where it is required , the first step compares the carrying amount of the reporting unit to its estimated fair value .
if the estimated fair value of a reporting unit exceeds its carrying amount , goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary .
to the extent that the carrying value of the reporting unit exceeds its estimated fair value , a second step is performed , wherein the reporting unit's carrying value of goodwill is compared to the implied fair value of goodwill .
to the extent that the carrying value exceeds the implied fair value , impairment exists and must be recognized .
the calculation of estimated fair value is based on two valuation techniques , a discounted cash flow model ( income approach ) and a market adjusted multiple of earnings and revenues ( market approach ) , with each method being weighted in the calculation .
the implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination .
the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit ( including any unrecognized intangible assets ) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit , as determined in the first step of the goodwill impairment test , was the price paid to acquire that reporting unit .
recoverability of other intangible assets with indefinite useful lives ( i.e .
trademarks ) is determined on a relief from royalty methodology ( income approach ) , which is based on the implied royalty paid , at an appropriate discount rate , to license the use of an asset rather than owning the asset .
the present value of the after-tax cost savings ( i.e .
royalty relief ) indicates the estimated fair value of the asset .
any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess .
intangible assets such as patents , customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives .
the weighted-average useful lives approximate the following: .

customer relationships       | 25 | years
---------------------------- | -- | -----
trademarks                   | 25 | years
completed technology/patents | 10 | years
other                        | 25 | years

recoverability of intangible assets with finite useful lives is assessed in the same manner as property , plant and equipment as described above .
income taxes : for purposes of the company 2019s consolidated financial statements for periods prior to the spin-off , income tax expense has been recorded as if the company filed tax returns on a stand-alone basis separate from ingersoll rand .
this separate return methodology applies the accounting guidance for income taxes to the stand-alone financial statements as if the company was a stand-alone enterprise for the periods prior to the spin-off .
therefore , cash tax payments and items of current and deferred taxes may not be reflective of the company 2019s actual tax balances prior to or subsequent to the spin-off .
cash paid for income taxes for the year ended december 31 , 2015 was $ 80.6 million .
the income tax accounts reflected in the consolidated balance sheets as of december 31 , 2015 and 2014 include income taxes payable and deferred taxes allocated to the company at the time of the spin-off .
the calculation of the company 2019s income taxes involves considerable judgment and the use of both estimates and allocations .
deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities , applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse .
the company recognizes future tax benefits , such as net operating losses and tax credits , to the extent that realizing these benefits is considered in its judgment to be more likely than not .
the company regularly reviews the recoverability of its deferred tax assets considering its historic profitability , projected future taxable income , timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies .
where appropriate , the company records a valuation allowance with respect to a future tax benefit .
product warranties : standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience .
the company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims , or as new information becomes available.


other operating and administrative expenses increased slightly in 2015 due to increased expenses asso- ciated with our larger film slate .
other operating and administrative expenses increased in 2014 primarily due to the inclusion of fandango , which was previously presented in our cable networks segment .
advertising , marketing and promotion expenses advertising , marketing and promotion expenses consist primarily of expenses associated with advertising for our theatrical releases and the marketing of our films on dvd and in digital formats .
we incur significant marketing expenses before and throughout the release of a film in movie theaters .
as a result , we typically incur losses on a film prior to and during the film 2019s exhibition in movie theaters and may not realize profits , if any , until the film generates home entertainment and content licensing revenue .
the costs associated with producing and marketing films have generally increased in recent years and may continue to increase in the future .
advertising , marketing and promotion expenses increased in 2015 primarily due to higher promotional costs associated with our larger 2015 film slate and increased advertising expenses for fandango .
advertising , marketing and promotion expenses decreased in 2014 primarily due to fewer major film releases compared to theme parks segment results of operations year ended december 31 ( in millions ) 2015 2014 2013 % (  % ) change 2014 to 2015 % (  % ) change 2013 to 2014 .

year ended december 31 ( in millions )                | 2015   | 2014   | 2013   | % (  % ) change 2014 to 2015 | % (  % ) change 2013 to 2014
----------------------------------------------------- | ------ | ------ | ------ | ---------------------------- | ----------------------------
revenue                                               | $ 3339 | $ 2623 | $ 2235 | 27.3% ( 27.3 % )             | 17.3% ( 17.3 % )
operating costs and expenses                          | 1875   | 1527   | 1292   | 22.8                         | 18.1
operating income before depreciation and amortization | $ 1464 | $ 1096 | $ 943  | 33.5% ( 33.5 % )             | 16.3% ( 16.3 % )

operating income before depreciation and amortization $ 1464 $ 1096 $ 943 33.5% ( 33.5 % ) 16.3% ( 16.3 % ) theme parks segment 2013 revenue in 2015 , our theme parks segment revenue was generated primarily from ticket sales and guest spending at our universal theme parks in orlando , florida and hollywood , california , as well as from licensing and other fees .
in november 2015 , nbcuniversal acquired a 51% ( 51 % ) interest in universal studios japan .
guest spending includes in-park spending on food , beverages and merchandise .
guest attendance at our theme parks and guest spending depend heavily on the general environment for travel and tourism , including consumer spend- ing on travel and other recreational activities .
licensing and other fees relate primarily to our agreements with third parties that own and operate the universal studios singapore theme park , as well as from the universal studios japan theme park , to license the right to use the universal studios brand name and other intellectual property .
theme parks segment revenue increased in 2015 and 2014 primarily due to increases in guest attendance and increases in guest spending at our orlando and hollywood theme parks .
the increase in 2015 was pri- marily due to the continued success of our attractions , including the wizarding world of harry potter 2122 2014 diagon alley 2122 in orlando and the fast & furious 2122 2014 supercharged 2122 studio tour and the simpson 2019s springfield attraction in hollywood , both of which opened in 2015 .
in addition , theme parks segment revenue in 2015 includes $ 169 million of revenue attributable to universal studios japan for the period from november 13 , 2015 to december 31 , 2015 .
the increase in 2014 was primarily due to new attractions , such as the wizarding world of harry potter 2122 2014 diagon alley 2122 in orlando , which opened in july 2014 , and despicable me : minion mayhem in hollywood .
59 comcast 2015 annual report on form 10-k


in summary , our cash flows for each period were as follows : years ended ( in millions ) dec 30 , dec 31 , dec 26 .

years ended ( in millions )                            | dec 302017       | dec 312016       | dec 262015
------------------------------------------------------ | ---------------- | ---------------- | --------------
net cash provided by operating activities              | $ 22110          | $ 21808          | $ 19018
net cash used for investing activities                 | -15762 ( 15762 ) | -25817 ( 25817 ) | -8183 ( 8183 )
net cash provided by ( used for ) financing activities | -8475 ( 8475 )   | -5739 ( 5739 )   | 1912
net increase ( decrease ) in cash and cash equivalents | $ -2127 ( 2127 ) | $ -9748 ( 9748 ) | $ 12747

operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities .
for 2017 compared to 2016 , the $ 302 million increase in cash provided by operating activities was due to changes to working capital partially offset by adjustments for non-cash items and lower net income .
tax reform did not have an impact on our 2017 cash provided by operating activities .
the increase in cash provided by operating activities was driven by increased income before taxes and $ 1.0 billion receipts of customer deposits .
these increases were partially offset by increased inventory and accounts receivable .
income taxes paid , net of refunds , in 2017 compared to 2016 were $ 2.9 billion higher due to higher income before taxes , taxable gains on sales of asml , and taxes on the isecg divestiture .
we expect approximately $ 2.0 billion of additional customer deposits in 2018 .
for 2016 compared to 2015 , the $ 2.8 billion increase in cash provided by operating activities was due to adjustments for non-cash items and changes in working capital , partially offset by lower net income .
the adjustments for non-cash items were higher in 2016 primarily due to restructuring and other charges and the change in deferred taxes , partially offset by lower depreciation .
investing activities investing cash flows consist primarily of capital expenditures ; investment purchases , sales , maturities , and disposals ; and proceeds from divestitures and cash used for acquisitions .
our capital expenditures were $ 11.8 billion in 2017 ( $ 9.6 billion in 2016 and $ 7.3 billion in 2015 ) .
the decrease in cash used for investing activities in 2017 compared to 2016 was primarily due to higher net activity of available-for sale-investments in 2017 , proceeds from our divestiture of isecg in 2017 , and higher maturities and sales of trading assets in 2017 .
this activity was partially offset by higher capital expenditures in 2017 .
the increase in cash used for investing activities in 2016 compared to 2015 was primarily due to our completed acquisition of altera , net purchases of trading assets in 2016 compared to net sales of trading assets in 2015 , and higher capital expenditures in 2016 .
this increase was partially offset by lower investments in non-marketable equity investments .
financing activities financing cash flows consist primarily of repurchases of common stock , payment of dividends to stockholders , issuance and repayment of short-term and long-term debt , and proceeds from the sale of shares of common stock through employee equity incentive plans .
the increase in cash used for financing activities in 2017 compared to 2016 was primarily due to net long-term debt activity , which was a use of cash in 2017 compared to a source of cash in 2016 .
during 2017 , we repurchased $ 3.6 billion of common stock under our authorized common stock repurchase program , compared to $ 2.6 billion in 2016 .
as of december 30 , 2017 , $ 13.2 billion remained available for repurchasing common stock under the existing repurchase authorization limit .
we base our level of common stock repurchases on internal cash management decisions , and this level may fluctuate .
proceeds from the sale of common stock through employee equity incentive plans totaled $ 770 million in 2017 compared to $ 1.1 billion in 2016 .
our total dividend payments were $ 5.1 billion in 2017 compared to $ 4.9 billion in 2016 .
we have paid a cash dividend in each of the past 101 quarters .
in january 2018 , our board of directors approved an increase to our cash dividend to $ 1.20 per share on an annual basis .
the board has declared a quarterly cash dividend of $ 0.30 per share of common stock for q1 2018 .
the dividend is payable on march 1 , 2018 to stockholders of record on february 7 , 2018 .
cash was used for financing activities in 2016 compared to cash provided by financing activities in 2015 , primarily due to fewer debt issuances and the repayment of debt in 2016 .
this activity was partially offset by repayment of commercial paper in 2015 and fewer common stock repurchases in 2016 .
md&a - results of operations consolidated results and analysis 37


selling , general , and administrative expenses selling , general , and administrative expenses increased to $ 65.2 million in 2010 from $ 52.9 million in 2009 due primarily to increases in compensation expense and recruitment costs , principally in connection with higher headcount in 2010 , and an increase in non-cash compensation expense for the reasons described above .
cost of goods sold cost of goods sold in 2010 and 2009 was $ 2.1 million and $ 1.7 million , respectively , and consisted primarily of royalties and other period costs related to arcalyst ae commercial supplies .
to date , arcalyst ae shipments to our customers have primarily consisted of supplies of inventory manufactured and expensed as research and development costs prior to fda approval in 2008 ; therefore , the costs of these supplies were not included in costs of goods sold .
other income and expense investment income decreased to $ 2.1 million in 2010 from $ 4.5 million in 2009 , due primarily to lower yields on , and lower average balances of , cash and marketable securities .
interest expense increased to $ 9.1 million in 2010 from $ 2.3 million in 2009 .
interest expense is primarily attributable to the imputed interest portion of payments to our landlord , commencing in the third quarter of 2009 , to lease newly constructed laboratory and office facilities in tarrytown , new york .
income tax expense ( benefit ) in 2010 , we did not recognize any income tax expense or benefit .
in 2009 , we recognized a $ 4.1 million income tax benefit , consisting primarily of ( i ) $ 2.7 million resulting from a provision in the worker , homeownership , and business assistance act of 2009 that allowed us to claim a refund of u.s .
federal alternative minimum tax that we paid in 2008 , and ( ii ) $ 0.7 million resulting from a provision in the american recovery and reinvestment act of 2009 that allowed us to claim a refund for a portion of our unused pre-2006 research tax credits .
years ended december 31 , 2009 and 2008 net loss regeneron reported a net loss of $ 67.8 million , or $ 0.85 per share ( basic and diluted ) , for the year ended december 31 , 2009 , compared to a net loss of $ 79.1 million , or $ 1.00 per share ( basic and diluted ) for 2008 .
the decrease in our net loss in 2009 was principally due to higher collaboration revenue in connection with our antibody collaboration with sanofi-aventis , receipt of a $ 20.0 million substantive performance milestone payment in connection with our vegf trap-eye collaboration with bayer healthcare , and higher arcalyst ae sales , partly offset by higher research and development expenses , as detailed below .
revenues revenues in 2009 and 2008 consist of the following: .

( in millions )                     | 2009    | 2008
----------------------------------- | ------- | -------
collaboration revenue               |         |
sanofi-aventis                      | $ 247.2 | $ 154.0
bayer healthcare                    | 67.3    | 31.2
total collaboration revenue         | 314.5   | 185.2
technology licensing revenue        | 40.0    | 40.0
net product sales                   | 18.4    | 6.3
contract research and other revenue | 6.4     | 7.0
total revenue                       | $ 379.3 | $ 238.5


after reviewing earnings per share and operating cash flow results against the performance objectives in the above table , the personnel committee set the entergy achievement multiplier at 140% ( 140 % ) of target .
under the terms of the executive incentive plan , the entergy achievement multiplier is automatically increased by 25 percent for the members of the office of the chief executive ( including mr .
denault and mr .
smith , but not the other named executive officers ) , subject to the personnel committee's discretion to adjust the automatic multiplier downward or eliminate it altogether .
in accordance with section 162 ( m ) of the internal revenue code , the multiplier which entergy refers to as the management effectiveness factor is intended to provide the committee , through the exercise of negative discretion , a mechanism to take into consideration the specific achievement factors relating to the overall performance of entergy corporation .
in january 2009 , the committee exercised its negative discretion to eliminate the management effectiveness factor , reflecting the personnel committee's determination that the entergy achievement multiplier , in and of itself without the management effectiveness factor , was consistent with the performance levels achieved by management .
the annual incentive award for the named executive officers ( other than mr .
leonard , mr .
denault and mr .
smith ) is awarded from an incentive pool approved by the committee .
from this pool , each named executive officer's supervisor determines the annual incentive payment based on the entergy achievement multiplier .
the supervisor has the discretion to increase or decrease the multiple used to determine an incentive award based on individual and business unit performance .
the incentive awards are subject to the ultimate approval of entergy's chief executive officer .
the following table shows the executive and management incentive plans payments as a percentage of base salary for 2008 : named exeutive officer target percentage base salary 2008 annual incentive award .

named exeutive officer    | target         | percentage base salary | 2008 annual incentive award
------------------------- | -------------- | ---------------------- | ---------------------------
j . wayne leonard         | 120% ( 120 % ) | 168% ( 168 % )         | $ 2169720
leo p . denault           | 70% ( 70 % )   | 98% ( 98 % )           | $ 617400
richard j . smith         | 70% ( 70 % )   | 98% ( 98 % )           | $ 632100
e . renae conley          | 60% ( 60 % )   | 102% ( 102 % )         | $ 415000
hugh t . mcdonald         | 50% ( 50 % )   | 50% ( 50 % )           | $ 160500
joseph f . domino         | 50% ( 50 % )   | 72% ( 72 % )           | $ 230000
roderick k . west         | 40% ( 40 % )   | 80% ( 80 % )           | $ 252000
haley fisackerly          | 40% ( 40 % )   | 46% ( 46 % )           | $ 125700
theodore h . bunting jr . | 60% ( 60 % )   | 117% ( 117 % )         | $ 400023
carolyn shanks            | 50% ( 50 % )   | 72% ( 72 % )           | $ 229134
jay a . lewis             | 40% ( 40 % )   | 60% ( 60 % )           | $ 128505

while ms .
shanks and mr .
lewis are no longer ceo-entergy mississippi and principal financial officer for the subsidiaries , respectively , ms .
shanks continues to participate in the executive incentive plan , and mr .
lewis continues to participate in the management incentive plan as they remain employees of entergy since the contemplated enexus separation has not occurred and enexus remains a subsidiary of entergy .
nuclear retention plan some of entergy's executives , but not any of the named executive officers , participate in a special retention plan for officers and other leaders with special expertise in the nuclear industry .
the committee authorized the plan to attract and retain management talent in the nuclear power field , a field which requires unique technical and other expertise that is in great demand in the utility industry .
the plan provides for bonuses to be paid over a three-year employment period .
subject to continued employment with a participating company , a participating employee is eligible to receive a special cash bonus consisting of three payments , each consisting of an amount from 15% ( 15 % ) to 30% ( 30 % ) of such participant's base salary.


in september 2006 , the fasb issued sfas 158 , 201cemployers 2019 accounting for defined benefit pension and other postretirement plans , an amendment of fasb statements no .
87 , 88 , 106 , and 132 ( r ) . 201d sfas 158 requires companies to recognize the over-funded and under-funded status of defined benefit pension and other postretire- ment plans as assets or liabilities on their balance sheets .
in addition , changes in the funded status must be recognized through other comprehensive income in shareholders 2019 equity in the year in which the changes occur .
we adopted sfas 158 on september 28 , 2007 .
in accordance with the transition rules in sfas 158 , this standard is being adopted on a prospective basis .
the adoption of sfas 158 resulted in an immaterial adjustment to our balance sheet , and had no impact on our net earnings or cash flows .
comprehensive income ( loss ) the company accounts for comprehensive income ( loss ) in accordance with the provisions of sfas no .
130 , 201creporting comprehensive income 201d ( 201csfas no .
130 201d ) .
sfas no .
130 is a financial statement presentation standard that requires the company to disclose non-owner changes included in equity but not included in net income or loss .
accumulated comprehensive loss presented in the financial statements consists of adjustments to the company 2019s minimum pension liability as follows ( in thousands ) : pension adjustments accumulated comprehensive .

                                       | pension adjustments | accumulated other comprehensive loss
-------------------------------------- | ------------------- | ------------------------------------
balance as of september 30 2005        | -1137 ( 1137 )      | -1137 ( 1137 )
change in period                       | 538                 | 538
balance as of september 29 2006        | $ -599 ( 599 )      | $ -599 ( 599 )
pension adjustment                     | 159                 | 159
adjustment to initially apply sfas 158 | 226                 | 226
balance as of september 28 2007        | $ -214 ( 214 )      | $ -214 ( 214 )

recently issued accounting pronouncements fin 48 in july 2006 , the fasb issued fasb interpretation no .
48 , 201caccounting for uncertainty in income taxes 2014 an interpretation of fasb statement no .
109 201d ( fin 48 ) , which clarifies the accounting and disclosure for uncertainty in tax positions , as defined .
fin 48 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes .
this interpretation is effective for fiscal years beginning after december 15 , 2006 , and is therefore effective for the company in fiscal year 2008 .
we are currently evaluating the impact that adopting fin 48 will have on the company 2019s financial position and results of operations , however at this time the company does not expect the impact to materially affect its results from operations or financial position .
sfas 157 in september 2006 , the fasb issued sfas no .
157 , 201cfair value measurements 201d ( 201csfas 157 201d ) which defines fair value , establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements .
sfas 157 is effective for financial statements issued for fiscal years beginning after november 15 , 2007 and interim periods within those fiscal years .
the company has not yet determined the impact that sfas 157 will have on its results from operations or financial position .
sab 108 in september 2006 , the securities and exchange commission issued staff accounting bulletin no .
108 , 201cconsidering the effects of prior year misstatements when quantifying misstatements in current year financial statements 201d ( 201csab 108 201d ) , which provides interpretive guidance on how the effects of the carryover or reversal of skyworks solutions , inc .
2007 annual report .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
notes to consolidated financial statements 2014 ( continued )


entergy gulf states louisiana , l.l.c .
management 2019s financial discussion and analysis all debt and common and preferred equity/membership interest issuances by entergy gulf states louisiana require prior regulatory approval .
preferred equity/membership interest and debt issuances are also subject to issuance tests set forth in its bond indentures and other agreements .
entergy gulf states louisiana has sufficient capacity under these tests to meet its foreseeable capital needs .
entergy gulf states louisiana 2019s receivables from the money pool were as follows as of december 31 for each of the following years: .

2011             | 2010             | 2009             | 2008
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 23596          | $ 63003          | $ 50131          | $ 11589

see note 4 to the financial statements for a description of the money pool .
entergy gulf states louisiana has a credit facility in the amount of $ 100 million scheduled to expire in august 2012 .
no borrowings were outstanding under the credit facility as of december 31 , 2011 .
entergy gulf states louisiana obtained short-term borrowing authorization from the ferc under which it may borrow through october 2013 , up to the aggregate amount , at any one time outstanding , of $ 200 million .
see note 4 to the financial statements for further discussion of entergy gulf states louisiana 2019s short-term borrowing limits .
entergy gulf states louisiana has also obtained an order from the ferc authorizing long-term securities issuances through july 2013 .
hurricane gustav and hurricane ike in september 2008 , hurricane gustav and hurricane ike caused catastrophic damage to entergy gulf states louisiana 2019s service territory .
the storms resulted in widespread power outages , significant damage to distribution , transmission , and generation infrastructure , and the loss of sales during the power outages .
in october 2008 , entergy gulf states louisiana drew all of its $ 85 million funded storm reserve .
on october 15 , 2008 , the lpsc approved entergy gulf states louisiana 2019s request to defer and accrue carrying cost on unrecovered storm expenditures during the period the company seeks regulatory recovery .
the approval was without prejudice to the ultimate resolution of the total amount of prudently incurred storm cost or final carrying cost rate .
entergy gulf states louisiana and entergy louisiana filed their hurricane gustav and hurricane ike storm cost recovery case with the lpsc in may 2009 .
in september 2009 , entergy gulf states louisiana and entergy louisiana and the louisiana utilities restoration corporation ( lurc ) , an instrumentality of the state of louisiana , filed with the lpsc an application requesting that the lpsc grant financing orders authorizing the financing of entergy gulf states louisiana 2019s and entergy louisiana 2019s storm costs , storm reserves , and issuance costs pursuant to act 55 of the louisiana regular session of 2007 ( act 55 financings ) .
entergy gulf states louisiana 2019s and entergy louisiana 2019s hurricane katrina and hurricane rita storm costs were financed primarily by act 55 financings , as discussed below .
entergy gulf states louisiana and entergy louisiana also filed an application requesting lpsc approval for ancillary issues including the mechanism to flow charges and act 55 financing savings to customers via a storm cost offset rider .
in december 2009 , entergy gulf states louisiana and entergy louisiana entered into a stipulation agreement with the lpsc staff that provides for total recoverable costs of approximately $ 234 million for entergy gulf states louisiana and $ 394 million for entergy louisiana , including carrying costs .
under this stipulation , entergy gulf states louisiana agrees not to recover $ 4.4 million and entergy louisiana agrees not to recover $ 7.2 million of their storm restoration spending .
the stipulation also permits replenishing entergy gulf states louisiana's storm reserve in the amount of $ 90 million and entergy louisiana's storm reserve in the amount of $ 200 million when the act 55 financings are accomplished .
in march and april 2010 , entergy gulf states louisiana , entergy louisiana , and other parties to the proceeding filed with the lpsc an uncontested stipulated settlement that includes these terms and also includes entergy gulf states louisiana 2019s and entergy louisiana's proposals under the act 55 financings , which includes a commitment to pass on to customers a minimum of $ 15.5


supplementary information on oil and gas producing activities ( unaudited ) 2017 proved reserves decreased by 647 mmboe primarily due to the following : 2022 revisions of previous estimates : increased by 49 mmboe primarily due to the acceleration of higher economic wells in the bakken into the 5-year plan resulting in an increase of 44 mmboe , with the remainder being due to revisions across the business .
2022 extensions , discoveries , and other additions : increased by 116 mmboe primarily due to an increase of 97 mmboe associated with the expansion of proved areas and wells to sales from unproved categories in oklahoma .
2022 purchases of reserves in place : increased by 28 mmboe from acquisitions of assets in the northern delaware basin in new mexico .
2022 production : decreased by 145 mmboe .
2022 sales of reserves in place : decreased by 695 mmboe including 685 mmboe associated with the sale of our canadian business and 10 mmboe associated with divestitures of certain conventional assets in oklahoma and colorado .
see item 8 .
financial statements and supplementary data - note 5 to the consolidated financial statements for information regarding these dispositions .
2016 proved reserves decreased by 67 mmboe primarily due to the following : 2022 revisions of previous estimates : increased by 63 mmboe primarily due to an increase of 151 mmboe associated with the acceleration of higher economic wells in the u.s .
resource plays into the 5-year plan and a decrease of 64 mmboe due to u.s .
technical revisions .
2022 extensions , discoveries , and other additions : increased by 60 mmboe primarily associated with the expansion of proved areas and new wells to sales from unproven categories in oklahoma .
2022 purchases of reserves in place : increased by 34 mmboe from acquisition of stack assets in oklahoma .
2022 production : decreased by 144 mmboe .
2022 sales of reserves in place : decreased by 84 mmboe associated with the divestitures of certain wyoming and gulf of mexico assets .
2015 proved reserves decreased by 35 mmboe primarily due to the following : 2022 revisions of previous estimates : decreased by 2 mmboe primarily resulting from an increase of 105 mmboe associated with drilling programs in u.s .
resource plays and an increase of 67 mmboe in discontinued operations due to technical reevaluation and lower royalty percentages related to lower realized prices , offset by a decrease of 173 mmboe which was largely due to reductions to our capital development program and adherence to the sec 5-year rule .
2022 extensions , discoveries , and other additions : increased by140 mmboe as a result of drilling programs in our u.s .
resource plays .
2022 production : decreased by 157 mmboe .
2022 sales of reserves in place : u.s .
conventional assets sales contributed to a decrease of 18 mmboe .
changes in proved undeveloped reserves as of december 31 , 2017 , 546 mmboe of proved undeveloped reserves were reported , a decrease of 6 mmboe from december 31 , 2016 .
the following table shows changes in proved undeveloped reserves for 2017 : ( mmboe ) .

beginning of year                          | 552
------------------------------------------ | ----------
revisions of previous estimates            | 5
improved recovery                          | 2014
purchases of reserves in place             | 15
extensions discoveries and other additions | 57
dispositions                               | 2014
transfers to proved developed              | -83 ( 83 )
end of year                                | 546

revisions of prior estimates .
revisions of prior estimates increased 5 mmboe during 2017 , primarily due to a 44 mmboe increase in the bakken from an acceleration of higher economic wells into the 5-year plan , offset by a decrease of 40 mmboe in oklahoma due to the removal of less economic wells from the 5-year plan .
extensions , discoveries and other additions .
increased 57 mmboe through expansion of proved areas in oklahoma.


the increase in property operating expenses from our large market same store group is primarily the result of increases in real estate taxes of $ 3.2 million , personnel expenses of $ 1.9 million , water expenses of approximately $ 1.0 million , cable expenses of $ 0.5 million , and waste removal expenses of $ 0.2 million .
the increase in property operating expenses from our secondary market same store group is primarily a result of increases in other operating expenses of $ 1.5 million , real estate taxes of $ 1.1 million , and personnel expenses of $ 1.2 million .
the decrease in property operating expenses from our non-same store and other group is primarily the result of decreases in personnel expenses of $ 2.4 million and utility expenses of $ 1.7 million .
depreciation and amortization the following table shows our depreciation and amortization expense by segment for the years ended december 31 , 2015 and december 31 , 2014 ( dollars in thousands ) : year ended december 31 , 2015 year ended december 31 , 2014 increase percentage increase .

                            | year ended december 31 2015 | year ended december 31 2014 | increase         | percentage increase
--------------------------- | --------------------------- | --------------------------- | ---------------- | -------------------
large market same store     | $ 168872                    | $ 174957                    | $ -6085 ( 6085 ) | ( 3.5 ) % (  % )
secondary market same store | 85008                       | 86058                       | -1050 ( 1050 )   | ( 1.2 ) % (  % )
same store portfolio        | 253880                      | 261015                      | -7135 ( 7135 )   | ( 2.7 ) % (  % )
non-same store and other    | 40640                       | 40797                       | -157 ( 157 )     | ( 0.4 ) % (  % )
total                       | $ 294520                    | $ 301812                    | $ -7292 ( 7292 ) | ( 2.4 ) % (  % )

the decrease in depreciation and amortization expense is primarily due to a decrease of $ 19.4 million related to the amortization of the fair value of in-place leases and resident relationships acquired as a result of the merger from the year ended december 31 , 2014 to the year ended december 31 , 2015 .
this decrease was partially offset by an increase in depreciation expense of $ 11.7 million driven by an increase in gross real estate assets from the year ended december 31 , 2014 to the year ended december 31 , 2015 .
property management expenses property management expenses for the year ended december 31 , 2015 were approximately $ 31.0 million , a decrease of $ 1.1 million from the year ended december 31 , 2014 .
the majority of the decrease was related to a decrease in state franchise taxes of $ 2.1 million , partially offset by an increase in insurance expense of $ 0.6 million , an increase in payroll expense of $ 0.3 million , and an increase in incentive expense $ 0.3 million .
general and administrative expenses general and administrative expenses for the year ended december 31 , 2015 were approximately $ 25.7 million , an increase of $ 4.8 million from the year ended december 31 , 2014 .
the majority of the increase was related to increases in legal fees of $ 2.7 million and stock option expenses of $ 1.6 million .
merger and integration related expenses there were no merger or integration related expenses for the year ended december 31 , 2015 , as these expenses related primarily to severance , legal , professional , temporary systems , staffing , and facilities costs incurred for the acquisition and integration of colonial .
for the year ended december 31 , 2014 , merger and integration related expenses were approximately $ 3.2 million and $ 8.4 million , respectively .
interest expense interest expense for the year ended december 31 , 2015 was approximately $ 122.3 million , a decrease of $ 1.6 million from the year ended december 31 , 2014 .
the decrease was primarily the result of a decrease in amortization of deferred financing cost from the year ended december 31 , 2014 to the year ended december 31 , 2015 of approximately $ 0.9 million .
also , the overall debt balance decreased from $ 3.5 billion to $ 3.4 billion , a decrease of $ 85.1 million .
the average effective interest rate remained at 3.7% ( 3.7 % ) and the average years to rate maturity increased from 4.4 years to 4.8 years .
job title mid-america apartment 10-k revision 1 serial <12345678> date sunday , march 20 , 2016 job number 304352-1 type page no .
50 operator abigaels


dish network corporation notes to consolidated financial statements - continued future minimum lease payments under the capital lease obligations , together with the present value of the net minimum lease payments as of december 31 , 2015 are as follows ( in thousands ) : for the years ended december 31 .

2016                                                                                | $ 76676
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------
2017                                                                                | 75874
2018                                                                                | 75849
2019                                                                                | 50320
2020                                                                                | 48000
thereafter                                                                                | 64000
total minimum lease payments                                                                                | 390719
less : amount representing lease of the orbital location and estimated executory costs ( primarily insurance and maintenance ) including profit thereon included in total minimum lease payments | -186742 ( 186742 )
net minimum lease payments                                                                                | 203977
less : amount representing interest                                                                                | -37485 ( 37485 )
present value of net minimum lease payments                                                                                | 166492
less : current portion                                                                                | -30849 ( 30849 )
long-term portion of capital lease obligations                                                                                | $ 135643

the summary of future maturities of our outstanding long-term debt as of december 31 , 2015 is included in the commitments table in note 15 .
11 .
income taxes and accounting for uncertainty in income taxes income taxes our income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported on our consolidated balance sheets , as well as probable operating loss , tax credit and other carryforwards .
deferred tax assets are offset by valuation allowances when we believe it is more likely than not that net deferred tax assets will not be realized .
we periodically evaluate our need for a valuation allowance .
determining necessary valuation allowances requires us to make assessments about historical financial information as well as the timing of future events , including the probability of expected future taxable income and available tax planning opportunities .
we file consolidated tax returns in the u.s .
the income taxes of domestic and foreign subsidiaries not included in the u.s .
tax group are presented in our consolidated financial statements on a separate return basis for each tax paying entity .
as of december 31 , 2015 , we had no net operating loss carryforwards ( 201cnols 201d ) for federal income tax purposes and $ 39 million of nol benefit for state income tax purposes , which are partially offset by a valuation allowance .
the state nols begin to expire in the year 2017 .
in addition , there are $ 61 million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance .
the state credit carryforwards began to expire in


company stock performance the following graph shows a five-year comparison of cumulative total shareholder return , calculated on a dividend reinvested basis , for the company , the s&p 500 composite index , the s&p computer hardware index , and the dow jones u.s .
technology index .
the graph assumes $ 100 was invested in each of the company 2019s common stock , the s&p 500 composite index , the s&p computer hardware index , and the dow jones u.s .
technology index as of the market close on september 30 , 2007 .
data points on the graph are annual .
note that historic stock price performance is not necessarily indicative of future stock price performance .
sep-11sep-10sep-09sep-08sep-07 sep-12 apple inc .
s&p 500 s&p computer hardware dow jones us technology comparison of 5 year cumulative total return* among apple inc. , the s&p 500 index , the s&p computer hardware index , and the dow jones us technology index *$ 100 invested on 9/30/07 in stock or index , including reinvestment of dividends .
fiscal year ending september 30 .
copyright a9 2012 s&p , a division of the mcgraw-hill companies inc .
all rights reserved .
september 30 , september 30 , september 30 , september 30 , september 30 , september 30 .

                        | september 30 2007 | september 30 2008 | september 30 2009 | september 30 2010 | september 30 2011 | september 30 2012
----------------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | -----------------
apple inc .             | $ 100             | $ 74              | $ 121             | $ 185             | $ 248             | $ 437
s&p 500                 | $ 100             | $ 78              | $ 73              | $ 80              | $ 81              | $ 105
s&p computer hardware   | $ 100             | $ 84              | $ 99              | $ 118             | $ 134             | $ 214
dow jones us technology | $ 100             | $ 76              | $ 85              | $ 95              | $ 98              | $ 127


the weighted average grant date fair value of options granted during 2012 , 2011 , and 2010 was $ 13 , $ 19 and $ 20 per share , respectively .
the total intrinsic value of options exercised during the years ended december 31 , 2012 , 2011 and 2010 , was $ 19.0 million , $ 4.2 million and $ 15.6 million , respectively .
in 2012 , the company granted 931340 shares of restricted class a common stock and 4048 shares of restricted stock units .
restricted common stock and restricted stock units generally have a vesting period of 2 to 4 years .
the fair value related to these grants was $ 54.5 million , which is recognized as compensation expense on an accelerated basis over the vesting period .
beginning with restricted stock grants in september 2010 , dividends are accrued on restricted class a common stock and restricted stock units and are paid once the restricted stock vests .
in 2012 , the company also granted 138410 performance shares .
the fair value related to these grants was $ 7.7 million , which is recognized as compensation expense on an accelerated and straight-lined basis over the vesting period .
the vesting of these shares is contingent on meeting stated performance or market conditions .
the following table summarizes restricted stock , restricted stock units , and performance shares activity for 2012 : number of shares weighted average grant date fair value outstanding at december 31 , 2011 .
.
.
.
.
.
.
.
.
.
.
.
.
.
1432610 $ 57 .

                                | number of shares   | weightedaveragegrant datefair value
------------------------------- | ------------------ | -----------------------------------
outstanding at december 31 2011 | 1432610            | $ 57
granted                         | 1073798            | 54
vested                          | -366388 ( 366388 ) | 55
cancelled                       | -226493 ( 226493 ) | 63
outstanding at december 31 2012 | 1913527            | 54

outstanding at december 31 , 2012 .
.
.
.
.
.
.
.
.
.
.
.
.
.
1913527 54 the total fair value of restricted stock , restricted stock units , and performance shares that vested during the years ended december 31 , 2012 , 2011 and 2010 , was $ 20.9 million , $ 11.6 million and $ 10.3 million , respectively .
eligible employees may acquire shares of class a common stock using after-tax payroll deductions made during consecutive offering periods of approximately six months in duration .
shares are purchased at the end of each offering period at a price of 90% ( 90 % ) of the closing price of the class a common stock as reported on the nasdaq global select market .
compensation expense is recognized on the dates of purchase for the discount from the closing price .
in 2012 , 2011 and 2010 , a total of 27768 , 32085 and 21855 shares , respectively , of class a common stock were issued to participating employees .
these shares are subject to a six-month holding period .
annual expense of $ 0.1 million , $ 0.2 million and $ 0.1 million for the purchase discount was recognized in 2012 , 2011 and 2010 , respectively .
non-executive directors receive an annual award of class a common stock with a value equal to $ 75000 .
non-executive directors may also elect to receive some or all of the cash portion of their annual stipend , up to $ 25000 , in shares of stock based on the closing price at the date of distribution .
as a result , 40260 , 40585 and 37350 shares of class a common stock were issued to non-executive directors during 2012 , 2011 and 2010 , respectively .
these shares are not subject to any vesting restrictions .
expense of $ 2.2 million , $ 2.1 million and $ 2.4 million related to these stock-based payments was recognized for the years ended december 31 , 2012 , 2011 and 2010 , respectively .
19 .
fair value measurements in general , the company uses quoted prices in active markets for identical assets to determine the fair value of marketable securities and equity investments .
level 1 assets generally include u.s .
treasury securities , equity securities listed in active markets , and investments in publicly traded mutual funds with quoted market prices .
if quoted prices are not available to determine fair value , the company uses other inputs that are directly observable .
assets included in level 2 generally consist of asset- backed securities , municipal bonds , u.s .
government agency securities and interest rate swap contracts .
asset-backed securities , municipal bonds and u.s .
government agency securities were measured at fair value based on matrix pricing using prices of similar securities with similar inputs such as maturity dates , interest rates and credit ratings .
the company determined the fair value of its interest rate swap contracts using standard valuation models with market-based observable inputs including forward and spot exchange rates and interest rate curves.


58 2018 ppg annual report and 10-k the crown group on october 2 , 2017 , ppg acquired the crown group ( 201ccrown 201d ) , a u.s.-based coatings application services business , which is reported as part of ppg's industrial coatings reportable segment .
crown is one of the leading component and product finishers in north america .
crown applies coatings to customers 2019 manufactured parts and assembled products at 11 u.s .
sites .
most of crown 2019s facilities , which also provide assembly , warehousing and sequencing services , are located at customer facilities or positioned near customer manufacturing sites .
the company serves manufacturers in the automotive , agriculture , construction , heavy truck and alternative energy industries .
the pro-forma impact on ppg's sales and results of operations , including the pro forma effect of events that are directly attributable to the acquisition , was not significant .
the results of this business since the date of acquisition have been reported within the industrial coatings business within the industrial coatings reportable segment .
taiwan chlorine industries taiwan chlorine industries ( 201ctci 201d ) was established in 1986 as a joint venture between ppg and china petrochemical development corporation ( 201ccpdc 201d ) to produce chlorine-based products in taiwan , at which time ppg owned 60 percent of the venture .
in conjunction with the 2013 separation of its commodity chemicals business , ppg conveyed to axiall corporation ( "axiall" ) its 60% ( 60 % ) ownership interest in tci .
under ppg 2019s agreement with cpdc , if certain post-closing conditions were not met following the three year anniversary of the separation , cpdc had the option to sell its 40% ( 40 % ) ownership interest in tci to axiall for $ 100 million .
in turn , axiall had a right to designate ppg as its designee to purchase the 40% ( 40 % ) ownership interest of cpdc .
in april 2016 , axiall announced that cpdc had decided to sell its ownership interest in tci to axiall .
in june 2016 , axiall formally designated ppg to purchase the 40% ( 40 % ) ownership interest in tci .
in august 2016 , westlake chemical corporation acquired axiall , which became a wholly-owned subsidiary of westlake .
in april 2017 , ppg finalized its purchase of cpdc 2019s 40% ( 40 % ) ownership interest in tci .
the difference between the acquisition date fair value and the purchase price of ppg 2019s 40% ( 40 % ) ownership interest in tci has been recorded as a loss in discontinued operations during the year-ended december 31 , 2017 .
ppg 2019s ownership in tci is accounted for as an equity method investment and the related equity earnings are reported within other income in the consolidated statement of income and in legacy in note 20 , 201creportable business segment information . 201d metokote corporation in july 2016 , ppg completed the acquisition of metokote corporation ( "metokote" ) , a u.s.-based coatings application services business .
metokote applies coatings to customers' manufactured parts and assembled products .
it operates on- site coatings services within several customer manufacturing locations , as well as at regional service centers , located throughout the u.s. , canada , mexico , the united kingdom , germany , hungary and the czech republic .
customers ship parts to metokote ae service centers where they are treated to enhance paint adhesion and painted with electrocoat , powder or liquid coatings technologies .
coated parts are then shipped to the customer 2019s next stage of assembly .
metokote coats an average of more than 1.5 million parts per day .
the following table summarizes the estimated fair value of assets acquired and liabilities assumed as reflected in the final purchase price allocation for metokote .
( $ in millions ) .

current assets                                   | $ 38
------------------------------------------------ | ----------
property plant and equipment                     | 73
identifiable intangible assets with finite lives | 86
goodwill                                         | 166
deferred income taxes ( a )                      | -12 ( 12 )
total assets                                     | $ 351
current liabilities                              | -23 ( 23 )
other long-term liabilities                      | -22 ( 22 )
total liabilities                                | ( $ 45 )
total purchase price net of cash acquired        | $ 306

( a ) the net deferred income tax liability is included in assets due to the company's tax jurisdictional netting .
the pro-forma impact on ppg's sales and results of operations , including the pro forma effect of events that are directly attributable to the acquisition , was not significant .
while calculating this impact , no cost savings or operating synergies that may result from the acquisition were included .
the results of this business since the date of acquisition have been reported within the industrial coatings business within the industrial coatings reportable segment .
notes to the consolidated financial statements