jpmorgan chase & co .
/ 2007 annual report 117 nonrecurring fair value changes the following table presents the total change in value of financial instruments for which a fair value adjustment has been included in the consolidated statement of income for the year ended december 31 , 2007 , related to financial instruments held at december 31 , 2007 .
year ended december 31 , 2007 ( in millions ) 2007 .

year ended december 31 2007 ( in millions )            | 2007
------------------------------------------------------ | --------------
loans                                                  | $ -720 ( 720 )
other assets                                           | -161 ( 161 )
accounts payable accrued expense and other liabilities | 2
total nonrecurring fair value gains ( losses )         | $ -879 ( 879 )

in the above table , loans principally include changes in fair value for loans carried on the balance sheet at the lower of cost or fair value ; and accounts payable , accrued expense and other liabilities principally includes the change in fair value for unfunded lending-related commitments within the leveraged lending portfolio .
level 3 assets analysis level 3 assets ( including assets measured at the lower of cost or fair value ) were 5% ( 5 % ) of total firm assets at december 31 , 2007 .
these assets increased during 2007 principally during the second half of the year , when liquidity in mortgages and other credit products fell dra- matically .
the increase was primarily due to an increase in leveraged loan balances within level 3 as the ability of the firm to syndicate this risk to third parties became limited by the credit environment .
in addi- tion , there were transfers from level 2 to level 3 during 2007 .
these transfers were principally for instruments within the mortgage market where inputs which are significant to their valuation became unob- servable during the year .
subprime and alt-a whole loans , subprime home equity securities , commercial mortgage-backed mezzanine loans and credit default swaps referenced to asset-backed securities consti- tuted the majority of the affected instruments , reflecting a significant decline in liquidity in these instruments in the third and fourth quarters of 2007 , as new issue activity was nonexistent and independent pric- ing information was no longer available for these assets .
transition in connection with the initial adoption of sfas 157 , the firm recorded the following on january 1 , 2007 : 2022 a cumulative effect increase to retained earnings of $ 287 million , primarily related to the release of profit previously deferred in accordance with eitf 02-3 ; 2022 an increase to pretax income of $ 166 million ( $ 103 million after-tax ) related to the incorporation of the firm 2019s creditworthiness in the valuation of liabilities recorded at fair value ; and 2022 an increase to pretax income of $ 464 million ( $ 288 million after-tax ) related to valuations of nonpublic private equity investments .
prior to the adoption of sfas 157 , the firm applied the provisions of eitf 02-3 to its derivative portfolio .
eitf 02-3 precluded the recogni- tion of initial trading profit in the absence of : ( a ) quoted market prices , ( b ) observable prices of other current market transactions or ( c ) other observable data supporting a valuation technique .
in accor- dance with eitf 02-3 , the firm recognized the deferred profit in principal transactions revenue on a systematic basis ( typically straight- line amortization over the life of the instruments ) and when observ- able market data became available .
prior to the adoption of sfas 157 the firm did not incorporate an adjustment into the valuation of liabilities carried at fair value on the consolidated balance sheet .
commencing january 1 , 2007 , in accor- dance with the requirements of sfas 157 , an adjustment was made to the valuation of liabilities measured at fair value to reflect the credit quality of the firm .
prior to the adoption of sfas 157 , privately held investments were initially valued based upon cost .
the carrying values of privately held investments were adjusted from cost to reflect both positive and neg- ative changes evidenced by financing events with third-party capital providers .
the investments were also subject to ongoing impairment reviews by private equity senior investment professionals .
the increase in pretax income related to nonpublic private equity investments in connection with the adoption of sfas 157 was due to there being sufficient market evidence to support an increase in fair values using the sfas 157 methodology , although there had not been an actual third-party market transaction related to such investments .
financial disclosures required by sfas 107 sfas 107 requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate their fair values .
many but not all of the financial instruments held by the firm are recorded at fair value on the consolidated balance sheets .
financial instruments within the scope of sfas 107 that are not carried at fair value on the consolidated balance sheets are discussed below .
additionally , certain financial instruments and all nonfinancial instruments are excluded from the scope of sfas 107 .
accordingly , the fair value disclosures required by sfas 107 provide only a partial estimate of the fair value of jpmorgan chase .
for example , the firm has developed long-term relationships with its customers through its deposit base and credit card accounts , commonly referred to as core deposit intangibles and credit card relationships .
in the opinion of management , these items , in the aggregate , add significant value to jpmorgan chase , but their fair value is not disclosed in this note .
financial instruments for which fair value approximates carrying value certain financial instruments that are not carried at fair value on the consolidated balance sheets are carried at amounts that approxi- mate fair value due to their short-term nature and generally negligi- ble credit risk .
these instruments include cash and due from banks , deposits with banks , federal funds sold , securities purchased under resale agreements with short-dated maturities , securities borrowed , short-term receivables and accrued interest receivable , commercial paper , federal funds purchased , securities sold under repurchase agreements with short-dated maturities , other borrowed funds , accounts payable and accrued liabilities .
in addition , sfas 107 requires that the fair value for deposit liabilities with no stated matu- rity ( i.e. , demand , savings and certain money market deposits ) be equal to their carrying value .
sfas 107 does not allow for the recog- nition of the inherent funding value of these instruments.


long-term product offerings include active and index strategies .
our active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile .
we offer two types of active strategies : those that rely primarily on fundamental research and those that utilize primarily quantitative models to drive portfolio construction .
in contrast , index strategies seek to closely track the returns of a corresponding index , generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index .
index strategies include both our non-etf index products and ishares etfs .
althoughmany clients use both active and index strategies , the application of these strategies may differ .
for example , clients may use index products to gain exposure to a market or asset class .
in addition , institutional non-etf index assignments tend to be very large ( multi-billion dollars ) and typically reflect low fee rates .
this has the potential to exaggerate the significance of net flows in institutional index products on blackrock 2019s revenues and earnings .
equity year-end 2014 equity aum of $ 2.451 trillion increased by $ 133.4 billion , or 6% ( 6 % ) , from the end of 2013 due to net new business of $ 52.4 billion and net market appreciation and foreign exchange movements of $ 81.0 billion .
net inflows were driven by $ 59.6 billion and $ 17.7 billion into ishares and non-etf index accounts , respectively .
index inflows were offset by active net outflows of $ 24.9 billion , with outflows of $ 18.0 billion and $ 6.9 billion from fundamental and scientific active equity products , respectively .
blackrock 2019s effective fee rates fluctuate due to changes in aummix .
approximately half of blackrock 2019s equity aum is tied to international markets , including emerging markets , which tend to have higher fee rates than similar u.s .
equity strategies .
accordingly , fluctuations in international equity markets , which do not consistently move in tandemwith u.s .
markets , may have a greater impact on blackrock 2019s effective equity fee rates and revenues .
fixed income fixed income aum ended 2014 at $ 1.394 trillion , increasing $ 151.5 billion , or 12% ( 12 % ) , from december 31 , 2013 .
the increase in aum reflected $ 96.4 billion in net new business and $ 55.1 billion in net market appreciation and foreign exchange movements .
in 2014 , net new business was diversified across fixed income offerings , with strong flows into our unconstrained , total return and high yield products .
flagship funds in these product areas include our unconstrained strategic income opportunities and fixed income global opportunities funds , with net inflows of $ 13.3 billion and $ 4.2 billion , respectively ; our total return fund with net inflows of $ 2.1 billion ; and our high yield bond fund with net inflows of $ 2.1 billion .
fixed income net inflows were positive across investment styles , with ishares , non- etf index , and active net inflows of $ 40.0 billion , $ 28.7 billion and $ 27.7 billion , respectively .
multi-asset class blackrock 2019s multi-asset class teammanages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities , currencies , bonds and commodities , and our extensive risk management capabilities .
investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays .
component changes in multi-asset class aum for 2014 are presented below .
( in millions ) december 31 , 2013 net inflows ( outflows ) market change fx impact december 31 , 2014 .

( in millions )               | december 31 2013 | net inflows ( outflows ) | market change  | fx impact          | december 31 2014
----------------------------- | ---------------- | ------------------------ | -------------- | ------------------ | ----------------
asset allocation and balanced | $ 169604         | $ 18387                  | $ -827 ( 827 ) | $ -4132 ( 4132 )   | $ 183032
target date/risk              | 111408           | 10992                    | 7083           | -872 ( 872 )       | 128611
fiduciary                     | 60202            | -474 ( 474 )             | 14788          | -8322 ( 8322 )     | 66194
multi-asset                   | $ 341214         | $ 28905                  | $ 21044        | $ -13326 ( 13326 ) | $ 377837

flows reflected ongoing institutional demand for our solutions-based advice with $ 15.1 billion , or 52% ( 52 % ) , of net inflows coming from institutional clients .
defined contribution plans of institutional clients remained a significant driver of flows , and contributed $ 12.8 billion to institutional multi- asset class net new business in 2014 , primarily into target date and target risk product offerings .
retail net inflows of $ 13.4 billion were driven by particular demand for our multi- asset income fund , which raised $ 6.3 billion in 2014 .
the company 2019s multi-asset strategies include the following : 2022 asset allocation and balanced products represented 48% ( 48 % ) of multi-asset class aum at year-end , with growth in aum driven by net new business of $ 18.4 billion .
these strategies combine equity , fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget .
in certain cases , these strategies seek to minimize downside risk through diversification , derivatives strategies and tactical asset allocation decisions .
flagship products in this category include our global allocation andmulti-asset income suites .
2022 target date and target risk products grew 10% ( 10 % ) organically in 2014 .
institutional investors represented 90% ( 90 % ) of target date and target risk aum , with defined contribution plans accounting for over 80% ( 80 % ) of aum .
the remaining 10% ( 10 % ) of target date and target risk aum consisted of retail client investments .
flows were driven by defined contribution investments in our lifepath and lifepath retirement income ae offerings .
lifepath products utilize a proprietary asset allocation model that seeks to balance risk and return over an investment horizon based on the investor 2019s expected retirement timing .
2022 fiduciary management services are complex mandates in which pension plan sponsors or endowments and foundations retain blackrock to assume responsibility for some or all aspects of planmanagement .
these customized services require strong partnership with the clients 2019 investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives.


the following table summarizes our future estimated cash payments under existing contractual obligations , including payments due by period: .

in millions                       | payments due by fiscal year total | payments due by fiscal year 2020 | payments due by fiscal year 2021 -22 | payments due by fiscal year 2023 -24 | payments due by fiscal year 2025 and thereafter
--------------------------------- | --------------------------------- | -------------------------------- | ------------------------------------ | ------------------------------------ | -----------------------------------------------
long-term debt ( a )              | $ 13093.0                         | $ 1396.3                         | $ 3338.4                             | $ 2810.2                             | $ 5548.1
accrued interest                  | 92.6                              | 92.6                             | -                                    | -                                    | -
operating leases ( b )            | 482.6                             | 120.0                            | 186.7                                | 112.9                                | 63.0
capital leases                    | 0.3                               | 0.2                              | 0.1                                  | -                                    | -
purchase obligations ( c )        | 2961.8                            | 2605.1                           | 321.9                                | 27.6                                 | 7.2
total contractual obligations     | 16630.3                           | 4214.2                           | 3847.1                               | 2950.7                               | 5618.3
other long-term obligations ( d ) | 1302.4                            | -                                | -                                    | -                                    | -
total long-term obligations       | $ 17932.7                         | $ 4214.2                         | $ 3847.1                             | $ 2950.7                             | $ 5618.3

( a ) amounts represent the expected cash payments of our long-term debt and do not include $ 0.3 million for capital leases or $ 72.0 million for net unamortized debt issuance costs , premiums and discounts , and fair value adjustments .
( b ) operating leases represents the minimum rental commitments under non-cancelable operating leases .
( c ) the majority of the purchase obligations represent commitments for raw material and packaging to be utilized in the normal course of business and for consumer marketing spending commitments that support our brands .
for purposes of this table , arrangements are considered purchase obligations if a contract specifies all significant terms , including fixed or minimum quantities to be purchased , a pricing structure , and approximate timing of the transaction .
most arrangements are cancelable without a significant penalty and with short notice ( usually 30 days ) .
any amounts reflected on the consolidated balance sheets as accounts payable and accrued liabilities are excluded from the table above .
( d ) the fair value of our foreign exchange , equity , commodity , and grain derivative contracts with a payable position to the counterparty was $ 17.3 million as of may 26 , 2019 , based on fair market values as of that date .
future changes in market values will impact the amount of cash ultimately paid or received to settle those instruments in the future .
other long-term obligations mainly consist of liabilities for accrued compensation and benefits , including the underfunded status of certain of our defined benefit pension , other postretirement benefit , and postemployment benefit plans , and miscellaneous liabilities .
we expect to pay approximately $ 20 million of benefits from our unfunded postemployment benefit plans and approximately $ 18 million of deferred compensation in fiscal 2020 .
we are unable to reliably estimate the amount of these payments beyond fiscal 2020 .
as of may 26 , 2019 , our total liability for uncertain tax positions and accrued interest and penalties was $ 165.1 million .
significant accounting estimates for a complete description of our significant accounting policies , please see note 2 to the consolidated financial statements in item 8 of this report .
our significant accounting estimates are those that have a meaningful impact on the reporting of our financial condition and results of operations .
these estimates include our accounting for promotional expenditures , valuation of long-lived assets , intangible assets , redeemable interest , stock-based compensation , income taxes , and defined benefit pension , other postretirement benefit , and postemployment benefit plans .
revenue recognition our revenues are reported net of variable consideration and consideration payable to our customers , including trade promotion , consumer coupon redemption and other costs , including estimated allowances for returns , unsalable product , and prompt pay discounts .
trade promotions are recorded using significant judgment of estimated participation and performance levels for offered programs at the time of sale .
differences between estimated expenses and actual costs are recognized as a change in management estimate in a subsequent period .
our accrued trade liabilities were $ 484 million as of may 26 , 2019 , and $ 500 million as of may 27 , 2018 .
because these amounts are significant , if our estimates are inaccurate we would have to make adjustments in subsequent periods that could have a significant effect on our results of operations.


stock performance graph * $ 100 invested on 11/17/11 in our stock or 10/31/11 in the relevant index , including reinvestment of dividends .
fiscal year ending december 31 , 2013 .
( 1 ) delphi automotive plc ( 2 ) s&p 500 2013 standard & poor 2019s 500 total return index ( 3 ) automotive supplier peer group 2013 russell 3000 auto parts index , including american axle & manufacturing , borgwarner inc. , cooper tire & rubber company , dana holding corp. , delphi automotive plc , dorman products inc. , federal-mogul corp. , ford motor co. , fuel systems solutions inc. , general motors co. , gentex corp. , gentherm inc. , genuine parts co. , johnson controls inc. , lkq corp. , lear corp. , meritor inc. , remy international inc. , standard motor products inc. , stoneridge inc. , superior industries international , trw automotive holdings corp. , tenneco inc. , tesla motors inc. , the goodyear tire & rubber co. , tower international inc. , visteon corp. , and wabco holdings inc .
company index november 17 , december 31 , december 31 , december 31 .

company index                        | november 17 2011 | december 31 2011 | december 31 2012 | december 31 2013
------------------------------------ | ---------------- | ---------------- | ---------------- | ----------------
delphi automotive plc ( 1 )          | $ 100.00         | $ 100.98         | $ 179.33         | $ 285.81
s&p 500 ( 2 )                        | 100.00           | 100.80           | 116.93           | 154.80
automotive supplier peer group ( 3 ) | 100.00           | 89.27            | 110.41           | 166.46

dividends on february 26 , 2013 , the board of directors approved the initiation of dividend payments on the company's ordinary shares .
the board of directors declared a regular quarterly cash dividend of $ 0.17 per ordinary share that was paid in each quarter of 2013 .
in addition , in january 2014 , the board of directors declared a regular quarterly cash dividend of $ 0.25 per ordinary share , payable on february 27 , 2014 to shareholders of record at the close of business on february 18 , 2014 .
in october 2011 , the board of managers of delphi automotive llp approved a distribution of approximately $ 95 million , which was paid on december 5 , 2011 , principally in respect of taxes , to members of delphi automotive llp who held membership interests as of the close of business on october 31 , 2011.


table of contents the company concluded that the acquisition of sentinelle medical did not represent a material business combination , and therefore , no pro forma financial information has been provided herein .
subsequent to the acquisition date , the company 2019s results of operations include the results of sentinelle medical , which is included within the company 2019s breast health reporting segment .
the company accounted for the sentinelle medical acquisition as a purchase of a business under asc 805 .
the purchase price was comprised of an $ 84.8 million cash payment , which was net of certain adjustments , plus three contingent payments up to a maximum of an additional $ 250.0 million in cash .
the contingent payments are based on a multiple of incremental revenue growth during the two-year period following the completion of the acquisition as follows : six months after acquisition , 12 months after acquisition , and 24 months after acquisition .
pursuant to asc 805 , the company recorded its estimate of the fair value of the contingent consideration liability based on future revenue projections of the sentinelle medical business under various potential scenarios and weighted probability assumptions of these outcomes .
as of the date of acquisition , these cash flow projections were discounted using a rate of 16.5% ( 16.5 % ) .
the discount rate is based on the weighted-average cost of capital of the acquired business plus a credit risk premium for non-performance risk related to the liability pursuant to asc 820 .
this analysis resulted in an initial contingent consideration liability of $ 29.5 million , which will be adjusted periodically as a component of operating expenses based on changes in the fair value of the liability driven by the accretion of the liability for the time value of money and changes in the assumptions pertaining to the achievement of the defined revenue growth milestones .
this fair value measurement was based on significant inputs not observable in the market and thus represented a level 3 measurement as defined in asc during each quarter in fiscal 2011 , the company has re-evaluated its assumptions and updated the revenue and probability assumptions for future earn-out periods and lowered its projections .
as a result of these adjustments , which were partially offset by the accretion of the liability , and using a current discount rate of approximately 17.0% ( 17.0 % ) , the company recorded a reversal of expense of $ 14.3 million in fiscal 2011 to record the contingent consideration liability at fair value .
in addition , during the second quarter of fiscal 2011 , the first earn-out period ended , and the company adjusted the fair value of the contingent consideration liability for actual results during the earn-out period .
this payment of $ 4.3 million was made in the third quarter of fiscal 2011 .
at september 24 , 2011 , the fair value of the liability is $ 10.9 million .
the company did not issue any equity awards in connection with this acquisition .
the company incurred third-party transaction costs of $ 1.2 million , which were expensed within general and administrative expenses in fiscal 2010 .
the purchase price was as follows: .

cash                     | $ 84751
------------------------ | --------
contingent consideration | 29500
total purchase price     | $ 114251

source : hologic inc , 10-k , november 23 , 2011 powered by morningstar ae document research 2120 the information contained herein may not be copied , adapted or distributed and is not warranted to be accurate , complete or timely .
the user assumes all risks for any damages or losses arising from any use of this information , except to the extent such damages or losses cannot be limited or excluded by applicable law .
past financial performance is no guarantee of future results.


synopsys , inc .
notes to consolidated financial statements 2014continued acquired identifiable intangible assets of $ 107.3 million , resulting in total goodwill of $ 257.6 million .
identifiable intangible assets are being amortized over three to eight years .
acquisition-related costs directly attributable to the business combination were $ 6.6 million for fiscal 2012 and were expensed as incurred in the consolidated statements of operations .
these costs consisted primarily of employee separation costs and professional services .
acquisition of magma design automation , inc .
( magma ) on february 22 , 2012 , the company acquired magma , a chip design software provider , at a per- share price of $ 7.35 .
additionally , the company assumed unvested restricted stock units ( rsus ) and stock options , collectively called 201cequity awards . 201d the aggregate purchase price was approximately $ 550.2 million .
this acquisition enables the company to more rapidly meet the needs of leading-edge semiconductor designers for more sophisticated design tools .
the company allocated the total purchase consideration of $ 550.2 million ( including $ 6.8 million related to equity awards assumed ) to the assets acquired and liabilities assumed based on their respective fair values at the acquisition date , including acquired identifiable intangible assets of $ 184.3 million , resulting in total goodwill of $ 316.3 million .
identifiable intangible assets are being amortized over three to ten years .
acquisition-related costs directly attributable to the business combination totaling $ 33.5 million for fiscal 2012 were expensed as incurred in the consolidated statements of operations and consist primarily of employee separation costs , contract terminations , professional services , and facilities closure costs .
other fiscal 2012 acquisitions during fiscal 2012 , the company acquired five other companies , including emulation & verification engineering , s.a .
( eve ) , for cash and allocated the total purchase consideration of $ 213.2 million to the assets acquired and liabilities assumed based on their respective fair values , resulting in total goodwill of $ 118.1 million .
acquired identifiable intangible assets totaling $ 73.3 million were valued using appropriate valuation methods such as income or cost methods and are being amortized over their respective useful lives ranging from one to eight years .
during fiscal 2012 , acquisition-related costs totaling $ 6.8 million were expensed as incurred in the consolidated statements of operations .
fiscal 2011 acquisitions during fiscal 2011 , the company completed two acquisitions for cash and allocated the total purchase consideration of $ 37.4 million to the assets and liabilities acquired based on their respective fair values at the acquisition date resulting in goodwill of $ 30.6 million .
acquired identifiable intangible assets of $ 9.3 million are being amortized over two to ten years .
note 4 .
goodwill and intangible assets goodwill: .

                           | ( in thousands )
-------------------------- | ----------------
balance at october 31 2011 | $ 1289286
additions                  | 687195
other adjustments ( 1 )    | 506
balance at october 31 2012 | $ 1976987
additions                  | 2014
other adjustments ( 1 )    | -1016 ( 1016 )
balance at october 31 2013 | $ 1975971


the following shares were excluded from the calculation of average shares outstanding 2013 diluted as their effect was anti- dilutive ( shares in millions ) . .

                                      | 2018 | 2017 | 2016
------------------------------------- | ---- | ---- | ----
mandatory convertible preferred stock | n/a  | 39   | 39
convertible notes                     | 2014 | 14   | 14
stock options ( 1 )                   | 9    | 11   | 13
stock awards                          | 2014 | 7    | 8

( 1 ) the average exercise price of options per share was $ 26.79 , $ 33.32 , and $ 26.93 for 2018 , 2017 , and 2016 , respectively .
in 2017 , had arconic generated sufficient net income , 30 million , 14 million , 5 million , and 1 million potential shares of common stock related to the mandatory convertible preferred stock , convertible notes , stock awards , and stock options , respectively , would have been included in diluted average shares outstanding .
the mandatory convertible preferred stock converted on october 2 , 2017 ( see note i ) .
in 2016 , had arconic generated sufficient net income , 28 million , 10 million , 4 million , and 1 million potential shares of common stock related to the mandatory convertible preferred stock , convertible notes , stock awards , and stock options , respectively , would have been included in diluted average shares outstanding.


table of contents .

assumptions used in monte carlo lattice pricing model | year ended december 31 , 2016 | year ended december 31 , 2015 | year ended december 31 , 2014
----------------------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
risk-free interest rate                               | 1.0% ( 1.0 % )                | 1.1% ( 1.1 % )                | 0.7% ( 0.7 % )
expected dividend yield                               | 2014% ( 2014 % )              | 2014% ( 2014 % )              | 2014% ( 2014 % )
expected volatility 2014ansys stock price             | 21% ( 21 % )                  | 23% ( 23 % )                  | 25% ( 25 % )
expected volatility 2014nasdaq composite index        | 16% ( 16 % )                  | 14% ( 14 % )                  | 15% ( 15 % )
expected term                                         | 2.8 years                     | 2.8 years                     | 2.8 years
correlation factor                                    | 0.65                          | 0.60                          | 0.70

the company issued 35000 , 115485 and 39900 performance-based restricted stock awards during 2016 , 2015 and 2014 , respectively .
of the cumulative performance-based restricted stock awards issued , defined operating metrics were assigned to 63462 , 51795 and 20667 awards with grant-date fair values of $ 84.61 , $ 86.38 and $ 81.52 during 2016 , 2015 and 2014 , respectively .
the grant-date fair value of the awards is being recorded from the grant date through the conclusion of the measurement period associated with each operating metric based on management's estimates concerning the probability of vesting .
as of december 31 , 2016 , 7625 units of the total 2014 awards granted were earned and will be issued in 2017 .
total compensation expense associated with the awards recorded for the years ended december 31 , 2016 , 2015 and 2014 was $ 0.4 million , $ 0.4 million and $ 0.1 million , respectively .
in addition , in 2016 , 2015 and 2014 , the company granted restricted stock units of 488622 , 344500 and 364150 , respectively , that will vest over a three- or four-year period with weighted-average grant-date fair values of $ 88.51 , $ 86.34 and $ 82.13 , respectively .
during 2016 and 2015 , 162019 and 85713 shares vested and were released , respectively .
as of december 31 , 2016 , 2015 and 2014 , 838327 , 571462 and 344750 units were outstanding , respectively .
total compensation expense is being recorded over the service period and was $ 19.1 million , $ 12.5 million and $ 5.8 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
in conjunction with a 2015 acquisition , ansys issued 68451 shares of replacement restricted stock with a weighted-average grant-date fair value of $ 90.48 .
of the $ 6.2 million grant-date fair value , $ 3.5 million , related to partially vested awards , was recorded as non-cash purchase price consideration .
the remaining fair value will be recognized as stock compensation expense through the conclusion of the service period .
during the years ended december 31 , 2016 and 2015 , the company recorded $ 1.2 million and $ 0.6 million , respectively , of stock compensation expense related to these awards .
in conjunction with a 2011 acquisition , the company granted performance-based restricted stock awards .
vesting was determined based on the achievements of certain revenue and operating income targets of the entity post-acquisition .
total compensation expense associated with the awards recorded for the year ended december 31 , 2014 was $ 4.7 million .
the company has granted deferred stock awards to non-affiliate independent directors , which are rights to receive shares of common stock upon termination of service as a director .
in 2015 and prior , the deferred stock awards were granted quarterly in arrears and vested immediately upon grant .
associated with these awards , the company established a non-qualified 409 ( a ) deferred compensation plan with assets held under a rabbi trust to provide directors an opportunity to diversify their vested awards .
during open trading windows and at their elective option , the directors may convert their company shares into a variety of non-company-stock investment options in order to diversify their holdings .
as of december 31 , 2016 , 5000 shares have been diversified and 184099 undiversified deferred stock awards have vested with the underlying shares remaining unissued until the service termination of the respective director owners .
in may 2016 , the company granted 38400 deferred stock awards which will vest in full on the one-year anniversary of the grant .
total compensation expense associated with the awards recorded for the years ended december 31 , 2016 , 2015 and 2014 was $ 1.9 million , $ 4.0 million and $ 3.5 million , respectively.


of sales , competitive supply gross margin declined in south america , europe/africa and the caribbean and remained relatively flat in north america and asia .
large utilities gross margin increased $ 201 million , or 37% ( 37 % ) , to $ 739 million in 2001 from $ 538 million in 2000 .
excluding businesses acquired or that commenced commercial operations during 2001 and 2000 , large utilities gross margin increased 10% ( 10 % ) to $ 396 million in 2001 .
large utilities gross margin as a percentage of revenues increased to 30% ( 30 % ) in 2001 from 25% ( 25 % ) in 2000 .
in the caribbean ( which includes venezuela ) , large utility gross margin increased $ 166 million and was due to a full year of contribution from edc which was acquired in june 2000 .
also , in north america , the gross margin contributions from both ipalco and cilcorp increased .
growth distribution gross margin increased $ 165 million , or 126% ( 126 % ) to $ 296 million in 2001 from $ 131 million in 2000 .
excluding businesses acquired during 2001 and 2000 , growth distribution gross margin increased 93% ( 93 % ) to $ 268 million in 2001 .
growth distribution gross margin as a percentage of revenue increased to 18% ( 18 % ) in 2001 from 10% ( 10 % ) in 2000 .
growth distribution business gross margin , as well as gross margin as a percentage of sales , increased in south america and the caribbean , but decreased in europe/africa and asia .
in south america , growth distribution margin increased $ 157 million and was 38% ( 38 % ) of revenues .
the increase is due primarily to sul 2019s sales of excess energy into the southeast market where rationing was taking place .
in the caribbean , growth distribution margin increased $ 39 million and was 5% ( 5 % ) of revenues .
the increase is due mainly to lower losses at ede este and an increase in contribution from caess .
in europe/africa , growth distribution margin decreased $ 10 million and was negative due to losses at sonel .
in asia , growth distribution margin decreased $ 18 million and was negative due primarily to an increase in losses at telasi .
the breakdown of aes 2019s gross margin for the years ended december 31 , 2001 and 2000 , based on the geographic region in which they were earned , is set forth below. .

north america | 2001 $ 912 million | % (  % ) of revenue 25% ( 25 % ) | 2000 $ 844 million | % (  % ) of revenue 25% ( 25 % ) | % (  % ) change 8% ( 8 % )
------------- | ------------------ | -------------------------------- | ------------------ | -------------------------------- | --------------------------
south america | $ 522 million      | 30% ( 30 % )                     | $ 416 million      | 36% ( 36 % )                     | 25% ( 25 % )
caribbean*    | $ 457 million      | 25% ( 25 % )                     | $ 226 million      | 21% ( 21 % )                     | 102% ( 102 % )
europe/africa | $ 310 million      | 22% ( 22 % )                     | $ 371 million      | 29% ( 29 % )                     | ( 16% ( 16 % ) )
asia          | $ 101 million      | 15% ( 15 % )                     | $ 138 million      | 22% ( 22 % )                     | ( 27% ( 27 % ) )

* includes venezuela and colombia .
selling , general and administrative expenses selling , general and administrative expenses increased $ 38 million , or 46% ( 46 % ) , to $ 120 million in 2001 from $ 82 million in 2000 .
selling , general and administrative expenses as a percentage of revenues remained constant at 1% ( 1 % ) in 2001 and 2000 .
the overall increase in selling , general and administrative expenses is due to increased development activities .
interest expense , net net interest expense increased $ 327 million , or 29% ( 29 % ) , to $ 1.5 billion in 2001 from $ 1.1 billion in 2000 .
net interest expense as a percentage of revenues increased to 16% ( 16 % ) in 2001 from 15% ( 15 % ) in 2000 .
net interest expense increased overall primarily due to interest expense at new businesses , additional corporate interest expense arising from senior debt issued during 2001 to finance new investments and mark-to-market losses on interest rate related derivative instruments.


when we purchase an asset , we capitalize all costs necessary to make the asset ready for its intended use .
however , many of our assets are self-constructed .
a large portion of our capital expenditures is for track structure expansion ( capacity projects ) and replacement ( program projects ) , which is typically performed by our employees .
approximately 13% ( 13 % ) of our full-time equivalent employees are dedicated to the construction of capital assets .
costs that are directly attributable or overhead costs that relate directly to capital projects are capitalized .
direct costs that are capitalized as part of self-constructed assets include material , labor , and work equipment .
indirect costs are capitalized if they clearly relate to the construction of the asset .
these costs are allocated using appropriate statistical bases .
the capitalization of indirect costs is consistent with fasb statement no .
67 , accounting for costs and initial rental operations of real estate projects .
general and administrative expenditures are expensed as incurred .
normal repairs and maintenance are also expensed as incurred , while costs incurred that extend the useful life of an asset , improve the safety of our operations or improve operating efficiency are capitalized .
assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease .
amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease .
10 .
accounts payable and other current liabilities dec .
31 , dec .
31 , millions of dollars 2008 2007 .

millions of dollars                                  | dec . 31 2008 | dec . 31 2007
---------------------------------------------------- | ------------- | -------------
accounts payable                                     | $ 629         | $ 732
accrued wages and vacation                           | 367           | 394
accrued casualty costs                               | 390           | 371
income and other taxes                               | 207           | 343
dividends and interest                               | 328           | 284
equipment rents payable                              | 93            | 103
other                                                | 546           | 675
total accounts payable and other current liabilities | $ 2560        | $ 2902

11 .
fair value measurements during the first quarter of 2008 , we fully adopted fasb statement no .
157 , fair value measurements ( fas 157 ) .
fas 157 established a framework for measuring fair value and expanded disclosures about fair value measurements .
the adoption of fas 157 had no impact on our financial position or results of operations .
fas 157 applies to all assets and liabilities that are measured and reported on a fair value basis .
this enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values .
the statement requires that each asset and liability carried at fair value be classified into one of the following categories : level 1 : quoted market prices in active markets for identical assets or liabilities .
level 2 : observable market based inputs or unobservable inputs that are corroborated by market data .
level 3 : unobservable inputs that are not corroborated by market data.


entergy new orleans , inc .
management's financial discussion and analysis ( 1 ) includes approximately $ 30 million annually for maintenance capital , which is planned spending on routine capital projects that are necessary to support reliability of service , equipment or systems and to support normal customer growth .
( 2 ) purchase obligations represent the minimum purchase obligation or cancellation charge for contractual obligations to purchase goods or services .
for entergy new orleans , almost all of the total consists of unconditional fuel and purchased power obligations , including its obligations under the unit power sales agreement , which is discussed in note 8 to the financial statements .
in addition to the contractual obligations given above , entergy new orleans expects to make payments of approximately $ 113 million for the years 2009-2011 related to hurricane katrina and hurricane gustav restoration work and its gas rebuild project , of which $ 32 million is expected to be incurred in 2009 .
also , entergy new orleans expects to contribute $ 1.7 million to its pension plan and $ 5.9 million to its other postretirement plans in 2009 .
guidance pursuant to the pension protection act of 2006 rules , effective for the 2008 plan year and beyond , may affect the level of entergy new orleans' pension contributions in the future .
also in addition to the contractual obligations , entergy new orleans has $ 26.1 million of unrecognized tax benefits and interest for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions .
see note 3 to the financial statements for additional information regarding unrecognized tax benefits .
the planned capital investment estimate for entergy new orleans reflects capital required to support existing business .
the estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints , environmental compliance , market volatility , economic trends , and the ability to access capital .
management provides more information on long-term debt and preferred stock maturities in notes 5 and 6 and to the financial statements .
sources of capital entergy new orleans' sources to meet its capital requirements include : internally generated funds ; cash on hand ; and debt and preferred stock issuances .
entergy new orleans' receivables from or ( payables to ) the money pool were as follows as of december 31 for each of the following years: .

2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 60093          | $ 47705          | ( $ 37166 )      | ( $ 37166 )

see note 4 to the financial statements for a description of the money pool .
as discussed above in "bankruptcy proceedings" , entergy new orleans issued notes due in three years in satisfaction of its affiliate prepetition accounts payable , including its indebtedness to the entergy system money pool of $ 37.2 million .
entergy new orleans has obtained short-term borrowing authorization from the ferc under which it may borrow through march 2010 , up to the aggregate amount , at any one time outstanding , of $ 100 million .
see note 4 to the financial statements for further discussion of entergy new orleans' short-term borrowing limits .
the long- term securities issuances of entergy new orleans are limited to amounts authorized by the city council , and the current authorization extends through august 2010.


note 5 loans , commitments to extend credit and concentrations of credit risk loans outstanding were as follows: .

december 31 - in millions          | 2007         | 2006
---------------------------------- | ------------ | ------------
commercial                         | $ 28607      | $ 20584
commercial real estate             | 8906         | 3532
consumer                           | 18326        | 16515
residential mortgage               | 9557         | 6337
lease financing                    | 3500         | 3556
other                              | 413          | 376
total loans                        | 69309        | 50900
unearned income                    | -990 ( 990 ) | -795 ( 795 )
total loans net of unearned income | $ 68319      | $ 50105

concentrations of credit risk exist when changes in economic , industry or geographic factors similarly affect groups of counterparties whose aggregate exposure is material in relation to our total credit exposure .
loans outstanding and related unfunded commitments are concentrated in our primary geographic markets .
at december 31 , 2007 , no specific industry concentration exceeded 5% ( 5 % ) of total commercial loans outstanding and unfunded commitments .
in the normal course of business , we originate or purchase loan products whose contractual features , when concentrated , may increase our exposure as a holder and servicer of those loan products .
possible product terms and features that may create a concentration of credit risk would include loan products whose terms permit negative amortization , a high loan-to-value ratio , features that may expose the borrower to future increases in repayments above increases in market interest rates , below-market interest rates and interest-only loans , among others .
we originate interest-only loans to commercial borrowers .
these products are standard in the financial services industry and the features of these products are considered during the underwriting process to mitigate the increased risk of this product feature that may result in borrowers not being able to make interest and principal payments when due .
we do not believe that these product features create a concentration of credit risk .
we also originate home equity loans and lines of credit that result in a credit concentration of high loan-to-value ratio loan products at the time of origination .
in addition , these loans are concentrated in our primary geographic markets as discussed above .
at december 31 , 2007 , $ 2.7 billion of the $ 14.4 billion of home equity loans ( included in 201cconsumer 201d in the table above ) had a loan-to-value ratio greater than 90% ( 90 % ) .
these loans are collateralized primarily by 1-4 family residential properties .
as part of our asset and liability management activities , we also periodically purchase residential mortgage loans that are collateralized by 1-4 family residential properties .
at december 31 , 2007 , $ 3.0 billion of the $ 9.6 billion of residential mortgage loans were interest- only loans .
we realized net gains from sales of commercial mortgages of $ 39 million in 2007 , $ 55 million in 2006 and $ 61 million in 2005 .
gains on sales of education loans totaled $ 24 million in 2007 , $ 33 million in 2006 and $ 19 million in 2005 .
loans held for sale are reported separately on the consolidated balance sheet and are not included in the table above .
interest income from total loans held for sale was $ 184 million for 2007 , $ 157 million for 2006 and $ 104 million for 2005 and is included in other interest income in our consolidated income statement.


the goldman sachs group , inc .
and subsidiaries notes to consolidated financial statements the table below presents a summary of level 3 financial assets. .

$ in millions          | as of december 2018 | as of december 2017
---------------------- | ------------------- | -------------------
cash instruments       | $ 17227             | $ 15395
derivatives            | 4948                | 3802
other financial assets | 6                   | 4
total                  | $ 22181             | $ 19201

level 3 financial assets as of december 2018 increased compared with december 2017 , primarily reflecting an increase in level 3 cash instruments .
see notes 6 through 8 for further information about level 3 financial assets ( including information about unrealized gains and losses related to level 3 financial assets and financial liabilities , and transfers in and out of level 3 ) .
note 6 .
cash instruments cash instruments include u.s .
government and agency obligations , non-u.s .
government and agency obligations , mortgage-backed loans and securities , corporate debt instruments , equity securities , investments in funds at nav , and other non-derivative financial instruments owned and financial instruments sold , but not yet purchased .
see below for the types of cash instruments included in each level of the fair value hierarchy and the valuation techniques and significant inputs used to determine their fair values .
see note 5 for an overview of the firm 2019s fair value measurement policies .
level 1 cash instruments level 1 cash instruments include certain money market instruments , u.s .
government obligations , most non-u.s .
government obligations , certain government agency obligations , certain corporate debt instruments and actively traded listed equities .
these instruments are valued using quoted prices for identical unrestricted instruments in active markets .
the firm defines active markets for equity instruments based on the average daily trading volume both in absolute terms and relative to the market capitalization for the instrument .
the firm defines active markets for debt instruments based on both the average daily trading volume and the number of days with trading activity .
level 2 cash instruments level 2 cash instruments include most money market instruments , most government agency obligations , certain non-u.s .
government obligations , most mortgage-backed loans and securities , most corporate debt instruments , most state and municipal obligations , most other debt obligations , restricted or less liquid listed equities , commodities and certain lending commitments .
valuations of level 2 cash instruments can be verified to quoted prices , recent trading activity for identical or similar instruments , broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency .
consideration is given to the nature of the quotations ( e.g. , indicative or firm ) and the relationship of recent market activity to the prices provided from alternative pricing sources .
valuation adjustments are typically made to level 2 cash instruments ( i ) if the cash instrument is subject to transfer restrictions and/or ( ii ) for other premiums and liquidity discounts that a market participant would require to arrive at fair value .
valuation adjustments are generally based on market evidence .
level 3 cash instruments level 3 cash instruments have one or more significant valuation inputs that are not observable .
absent evidence to the contrary , level 3 cash instruments are initially valued at transaction price , which is considered to be the best initial estimate of fair value .
subsequently , the firm uses other methodologies to determine fair value , which vary based on the type of instrument .
valuation inputs and assumptions are changed when corroborated by substantive observable evidence , including values realized on sales .
valuation techniques and significant inputs of level 3 cash instruments valuation techniques of level 3 cash instruments vary by instrument , but are generally based on discounted cash flow techniques .
the valuation techniques and the nature of significant inputs used to determine the fair values of each type of level 3 cash instrument are described below : loans and securities backed by commercial real estate .
loans and securities backed by commercial real estate are directly or indirectly collateralized by a single commercial real estate property or a portfolio of properties , and may include tranches of varying levels of subordination .
significant inputs are generally determined based on relative value analyses and include : 2030 market yields implied by transactions of similar or related assets and/or current levels and changes in market indices such as the cmbx ( an index that tracks the performance of commercial mortgage bonds ) ; 118 goldman sachs 2018 form 10-k


item 15 .
exhibits , financial statement schedules .
( continued ) kinder morgan , inc .
form 10-k .

kinder morgan liquids terminals llc-n.j . development revenue bonds due january 15 2018 kinder morgan columbus llc-5.50% ( llc-5.50 % ) ms development revenue note due september 1 2022 | 25.0 8.2           | 25.0 8.2
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ | ----------------
kinder morgan operating l.p . 201cb 201d-jackson-union cos . il revenue bonds due april 1 2024                                                                                | 23.7               | 23.7
international marine terminals-plaquemines la revenue bonds due march 15 2025                                                                                | 40.0               | 40.0
other miscellaneous subsidiary debt                                                                                | 1.3                | 1.3
unamortized debt discount on long-term debt                                                                                | -20.3 ( 20.3 )     | -21.2 ( 21.2 )
current maturities of long-term debt                                                                                | -1263.3 ( 1263.3 ) | -596.6 ( 596.6 )
total long-term debt 2013 kmp                                                                                | $ 10282.8          | $ 10007.5

____________ ( a ) as a result of the implementation of asu 2009-17 , effective january 1 , 2010 , we ( i ) include the transactions and balances of our business trust , k n capital trust i and k n capital trust iii , in our consolidated financial statements and ( ii ) no longer include our junior subordinated deferrable interest debentures issued to the capital trusts ( see note 18 201crecent accounting pronouncements 201d ) .
( b ) kmp issued its $ 500 million in principal amount of 9.00% ( 9.00 % ) senior notes due february 1 , 2019 in december 2008 .
each holder of the notes has the right to require kmp to repurchase all or a portion of the notes owned by such holder on february 1 , 2012 at a purchase price equal to 100% ( 100 % ) of the principal amount of the notes tendered by the holder plus accrued and unpaid interest to , but excluding , the repurchase date .
on and after february 1 , 2012 , interest will cease to accrue on the notes tendered for repayment .
a holder 2019s exercise of the repurchase option is irrevocable .
kinder morgan kansas , inc .
the 2028 and 2098 debentures and the 2012 and 2015 senior notes are redeemable in whole or in part , at kinder morgan kansas , inc . 2019s option at any time , at redemption prices defined in the associated prospectus supplements .
the 2027 debentures are redeemable in whole or in part , at kinder morgan kansas , inc . 2019s option after november 1 , 2004 at redemption prices defined in the associated prospectus supplements .
on september 2 , 2010 , kinder morgan kansas , inc .
paid the remaining $ 1.1 million principal balance outstanding on kinder morgan kansas , inc . 2019s 6.50% ( 6.50 % ) series debentures , due 2013 .
kinder morgan finance company , llc on december 20 , 2010 , kinder morgan finance company , llc , a wholly owned subsidiary of kinder morgan kansas , inc. , completed a public offering of senior notes .
it issued a total of $ 750 million in principal amount of 6.00% ( 6.00 % ) senior notes due january 15 , 2018 .
net proceeds received from the issuance of the notes , after underwriting discounts and commissions , were $ 744.2 million , which were used to retire the principal amount of the 5.35% ( 5.35 % ) senior notes that matured on january 5 , 2011 .
the 2011 , 2016 , 2018 and 2036 senior notes issued by kinder morgan finance company , llc are redeemable in whole or in part , at kinder morgan kansas , inc . 2019s option at any time , at redemption prices defined in the associated prospectus supplements .
each series of these notes is fully and unconditionally guaranteed by kinder morgan kansas , inc .
on a senior unsecured basis as to principal , interest and any additional amounts required to be paid as a result of any withholding or deduction for canadian taxes .
capital trust securities kinder morgan kansas , inc . 2019s business trusts , k n capital trust i and k n capital trust iii , are obligated for $ 12.7 million of 8.56% ( 8.56 % ) capital trust securities maturing on april 15 , 2027 and $ 14.4 million of 7.63% ( 7.63 % ) capital trust securities maturing on april 15 , 2028 , respectively , which it guarantees .
the 2028 securities are redeemable in whole or in part , at kinder morgan kansas , inc . 2019s option at any time , at redemption prices as defined in the associated prospectus .
the 2027 securities are redeemable in whole or in part at kinder morgan kansas , inc . 2019s option and at any time in certain limited circumstances upon the occurrence of certain events and at prices , all defined in the associated prospectus supplements .
upon redemption by kinder morgan kansas , inc .
or at maturity of the junior subordinated deferrable interest debentures , it must use the proceeds to make redemptions of the capital trust securities on a pro rata basis.


reporting unit 2019s related goodwill assets .
in 2013 , we recorded a non-cash goodwill impairment charge of $ 195 million , net of state tax benefits .
see 201ccritical accounting policies - goodwill 201d in management 2019s discussion and analysis of financial condition and results of operations and 201cnote 1 2013 significant accounting policies 201d for more information on this impairment charge .
changes in u.s .
or foreign tax laws , including possibly with retroactive effect , and audits by tax authorities could result in unanticipated increases in our tax expense and affect profitability and cash flows .
for example , proposals to lower the u.s .
corporate income tax rate would require us to reduce our net deferred tax assets upon enactment of the related tax legislation , with a corresponding material , one-time increase to income tax expense , but our income tax expense and payments would be materially reduced in subsequent years .
actual financial results could differ from our judgments and estimates .
refer to 201ccritical accounting policies 201d in management 2019s discussion and analysis of financial condition and results of operations , and 201cnote 1 2013 significant accounting policies 201d of our consolidated financial statements for a complete discussion of our significant accounting policies and use of estimates .
item 1b .
unresolved staff comments .
item 2 .
properties .
at december 31 , 2013 , we owned or leased building space ( including offices , manufacturing plants , warehouses , service centers , laboratories , and other facilities ) at 518 locations primarily in the u.s .
additionally , we manage or occupy various u.s .
government-owned facilities under lease and other arrangements .
at december 31 , 2013 , we had significant operations in the following locations : 2022 aeronautics 2013 palmdale , california ; marietta , georgia ; greenville , south carolina ; fort worth and san antonio , texas ; and montreal , canada .
2022 information systems & global solutions 2013 goodyear , arizona ; sunnyvale , california ; colorado springs and denver , colorado ; gaithersburg and rockville , maryland ; valley forge , pennsylvania ; and houston , texas .
2022 missiles and fire control 2013 camden , arkansas ; orlando , florida ; lexington , kentucky ; and grand prairie , texas .
2022 mission systems and training 2013 orlando , florida ; baltimore , maryland ; moorestown/mt .
laurel , new jersey ; owego and syracuse , new york ; akron , ohio ; and manassas , virginia .
2022 space systems 2013 huntsville , alabama ; sunnyvale , california ; denver , colorado ; albuquerque , new mexico ; and newtown , pennsylvania .
2022 corporate activities 2013 lakeland , florida and bethesda , maryland .
in november 2013 , we committed to a plan to vacate our leased facilities in goodyear , arizona and akron , ohio , and close our owned facility in newtown , pennsylvania and certain owned buildings at our sunnyvale , california facility .
we expect these closures , which include approximately 2.5 million square feet of facility space , will be substantially complete by the middle of 2015 .
for information regarding these matters , see 201cnote 2 2013 restructuring charges 201d of our consolidated financial statements .
the following is a summary of our square feet of floor space by business segment at december 31 , 2013 , inclusive of the facilities that we plan to vacate as mentioned above ( in millions ) : owned leased u.s .
government- owned total .

                                       | owned | leased | u.s . government- owned | total
-------------------------------------- | ----- | ------ | ----------------------- | -----
aeronautics                            | 5.8   | 2.7    | 14.2                    | 22.7
information systems & global solutions | 2.5   | 5.7    | 2014                    | 8.2
missiles and fire control              | 4.2   | 5.1    | 1.3                     | 10.6
mission systems and training           | 5.8   | 5.3    | 0.4                     | 11.5
space systems                          | 8.5   | 1.6    | 7.9                     | 18.0
corporate activities                   | 3.0   | 0.9    | 2014                    | 3.9
total                                  | 29.8  | 21.3   | 23.8                    | 74.9

we believe our facilities are in good condition and adequate for their current use .
we may improve , replace , or reduce facilities as considered appropriate to meet the needs of our operations.


34| | duke realty corporation annual report 2009 property investment we evaluate development and acquisition opportunities based upon market outlook , supply and long-term growth potential .
our ability to make future property investments is dependent upon our continued access to our longer-term sources of liquidity including the issuances of debt or equity securities as well as generating cash flow by disposing of selected properties .
in light of current economic conditions , management continues to evaluate our investment priorities and is focused on accretive growth .
we have continued to operate at a substantially reduced level of new development activity , as compared to recent years , and are focused on the core operations of our existing base of properties .
recurring expenditures one of our principal uses of our liquidity is to fund the recurring leasing/capital expenditures of our real estate investments .
the following is a summary of our recurring capital expenditures for the years ended december 31 , 2009 , 2008 and 2007 , respectively ( in thousands ) : dividends and distributions we are required to meet the distribution requirements of the internal revenue code of 1986 , as amended ( the 201ccode 201d ) , in order to maintain our reit status .
because depreciation and impairments are non-cash expenses , cash flow will typically be greater than operating income .
we paid dividends per share of $ 0.76 , $ 1.93 and $ 1.91 for the years ended december 31 , 2009 , 2008 and 2007 , respectively .
we expect to continue to distribute at least an amount equal to our taxable earnings , to meet the requirements to maintain our reit status , and additional amounts as determined by our board of directors .
distributions are declared at the discretion of our board of directors and are subject to actual cash available for distribution , our financial condition , capital requirements and such other factors as our board of directors deems relevant .
at december 31 , 2009 we had six series of preferred shares outstanding .
the annual dividend rates on our preferred shares range between 6.5% ( 6.5 % ) and 8.375% ( 8.375 % ) and are paid in arrears quarterly. .

                              | 2009    | 2008    | 2007
----------------------------- | ------- | ------- | -------
recurring tenant improvements | $ 29321 | $ 36885 | $ 45296
recurring leasing costs       | 40412   | 28205   | 32238
building improvements         | 9321    | 9724    | 8402
totals                        | $ 79054 | $ 74814 | $ 85936


home equity repurchase obligations pnc 2019s repurchase obligations include obligations with respect to certain brokered home equity loans/lines that were sold to a limited number of private investors in the financial services industry by national city prior to our acquisition of national city .
pnc is no longer engaged in the brokered home equity lending business , and our exposure under these loan repurchase obligations is limited to repurchases of the loans sold in these transactions .
repurchase activity associated with brokered home equity lines/loans is reported in the non- strategic assets portfolio segment .
loan covenants and representations and warranties were established through loan sale agreements with various investors to provide assurance that loans pnc sold to the investors are of sufficient investment quality .
key aspects of such covenants and representations and warranties include the loan 2019s compliance with any applicable loan criteria established for the transaction , including underwriting standards , delivery of all required loan documents to the investor or its designated party , sufficient collateral valuation , and the validity of the lien securing the loan .
as a result of alleged breaches of these contractual obligations , investors may request pnc to indemnify them against losses on certain loans or to repurchase loans .
we investigate every investor claim on a loan by loan basis to determine the existence of a legitimate claim , and that all other conditions for indemnification or repurchase have been met prior to settlement with that investor .
indemnifications for loss or loan repurchases typically occur when , after review of the claim , we agree insufficient evidence exists to dispute the investor 2019s claim that a breach of a loan covenant and representation and warranty has occurred , such breach has not been cured , and the effect of such breach is deemed to have had a material and adverse effect on the value of the transferred loan .
depending on the sale agreement and upon proper notice from the investor , we typically respond to home equity indemnification and repurchase requests within 60 days , although final resolution of the claim may take a longer period of time .
most home equity sale agreements do not provide for penalties or other remedies if we do not respond timely to investor indemnification or repurchase requests .
investor indemnification or repurchase claims are typically settled on an individual loan basis through make-whole payments or loan repurchases ; however , on occasion we may negotiate pooled settlements with investors .
in connection with pooled settlements , we typically do not repurchase loans and the consummation of such transactions generally results in us no longer having indemnification and repurchase exposure with the investor in the transaction .
the following table details the unpaid principal balance of our unresolved home equity indemnification and repurchase claims at december 31 , 2012 and december 31 , 2011 , respectively .
table 31 : analysis of home equity unresolved asserted indemnification and repurchase claims in millions december 31 december 31 .

in millions              | december 31 2012 | december 31 2011
------------------------ | ---------------- | ----------------
home equity loans/lines: |                  |
private investors ( a )  | $ 74             | $ 110

( a ) activity relates to brokered home equity loans/lines sold through loan sale transactions which occurred during 2005-2007 .
the pnc financial services group , inc .
2013 form 10-k 81


leases , was $ 92 million , $ 80 million , and $ 72 million in 2002 , 2001 , and 2000 , respectively .
future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of september 28 , 2002 , are as follows ( in millions ) : concentrations in the available sources of supply of materials and product although certain components essential to the company's business are generally available from multiple sources , other key components ( including microprocessors and application-specific integrated circuits , or ( "asics" ) ) are currently obtained by the company from single or limited sources .
some other key components , while currently available to the company from multiple sources , are at times subject to industry- wide availability and pricing pressures .
in addition , the company uses some components that are not common to the rest of the personal computer industry , and new products introduced by the company often initially utilize custom components obtained from only one source until the company has evaluated whether there is a need for and subsequently qualifies additional suppliers .
if the supply of a key single-sourced component to the company were to be delayed or curtailed or in the event a key manufacturing vendor delays shipments of completed products to the company , the company's ability to ship related products in desired quantities and in a timely manner could be adversely affected .
the company's business and financial performance could also be adversely affected depending on the time required to obtain sufficient quantities from the original source , or to identify and obtain sufficient quantities from an alternative source .
continued availability of these components may be affected if producers were to decide to concentrate on the production of common components instead of components customized to meet the company's requirements .
finally , significant portions of the company's cpus , logic boards , and assembled products are now manufactured by outsourcing partners , the majority of which occurs in various parts of asia .
although the company works closely with its outsourcing partners on manufacturing schedules and levels , the company's operating results could be adversely affected if its outsourcing partners were unable to meet their production obligations .
contingencies beginning on september 27 , 2001 , three shareholder class action lawsuits were filed in the united states district court for the northern district of california against the company and its chief executive officer .
these lawsuits are substantially identical , and purport to bring suit on behalf of persons who purchased the company's publicly traded common stock between july 19 , 2000 , and september 28 , 2000 .
the complaints allege violations of the 1934 securities exchange act and seek unspecified compensatory damages and other relief .
the company believes these claims are without merit and intends to defend them vigorously .
the company filed a motion to dismiss on june 4 , 2002 , which was heard by the court on september 13 , 2002 .
on december 11 , 2002 , the court granted the company's motion to dismiss for failure to state a cause of action , with leave to plaintiffs to amend their complaint within thirty days .
the company is subject to certain other legal proceedings and claims that have arisen in the ordinary course of business and have not been fully adjudicated .
in the opinion of management , the company does not have a potential liability related to any current legal proceedings and claims that would have a material adverse effect on its financial condition , liquidity or results of operations .
however , the results of legal proceedings cannot be predicted with certainty .
should the company fail to prevail in any of these legal matters or should several of these legal matters be resolved against the company in the same reporting period , the operating results of a particular reporting period could be materially adversely affected .
the parliament of the european union is working on finalizing the waste electrical and electronic equipment directive ( the directive ) .
the directive makes producers of electrical goods , including personal computers , financially responsible for the collection , recycling , and safe disposal of past and future products .
the directive must now be approved and implemented by individual european union governments by june 2004 , while the producers' financial obligations are scheduled to start june 2005 .
the company's potential liability resulting from the directive related to past sales of its products and expenses associated with future sales of its product may be substantial .
however , because it is likely that specific laws , regulations , and enforcement policies will vary significantly between individual european member states , it is not currently possible to estimate the company's existing liability or future expenses resulting from the directive .
as the european union and its individual member states clarify specific requirements and policies with respect to the directive , the company will continue to assess its potential financial impact .
similar legislation may be enacted in other geographies , including federal and state legislation in the united states , the cumulative impact of which could be significant .
fiscal years .

2003                         | $ 83
---------------------------- | -----
2004                         | 78
2005                         | 66
2006                         | 55
2007                         | 42
later years                  | 140
total minimum lease payments | $ 464


vertex pharmaceuticals incorporated notes to consolidated financial statements ( continued ) i .
altus investment ( continued ) of the offering , held 450000 shares of redeemable preferred stock , which are not convertible into common stock and which are redeemable for $ 10.00 per share plus annual dividends of $ 0.50 per share , which have been accruing since the redeemable preferred stock was issued in 1999 , at vertex 2019s option on or after december 31 , 2010 , or by altus at any time .
the company was restricted from trading altus securities for a period of six months following the initial public offering .
when the altus securities trading restrictions expired , the company sold the 817749 shares of altus common stock for approximately $ 11.7 million , resulting in a realized gain of approximately $ 7.7 million in august 2006 .
additionally when the restrictions expired , the company began accounting for the altus warrants as derivative instruments under the financial accounting standards board statement no .
fas 133 , 201caccounting for derivative instruments and hedging activities 201d ( 201cfas 133 201d ) .
in accordance with fas 133 , in the third quarter of 2006 , the company recorded the altus warrants on its consolidated balance sheet at a fair market value of $ 19.1 million and recorded an unrealized gain on the fair market value of the altus warrants of $ 4.3 million .
in the fourth quarter of 2006 the company sold the altus warrants for approximately $ 18.3 million , resulting in a realized loss of $ 0.7 million .
as a result of the company 2019s sales of altus common stock and altus warrrants in 2006 , the company recorded a realized gain on a sale of investment of $ 11.2 million .
in accordance with the company 2019s policy , as outlined in note b , 201caccounting policies , 201d the company assessed its investment in altus , which it accounts for using the cost method , and determined that there had not been any adjustments to the fair values of that investment that would require the company to write down the investment basis of the asset , in 2005 and 2006 .
the company 2019s cost basis carrying value in its outstanding equity and warrants of altus was $ 18.9 million at december 31 , 2005 .
j .
accrued expenses and other current liabilities accrued expenses and other current liabilities consist of the following at december 31 ( in thousands ) : k .
commitments the company leases its facilities and certain equipment under non-cancelable operating leases .
the company 2019s leases have terms through april 2018 .
the term of the kendall square lease began january 1 , 2003 and lease payments commenced in may 2003 .
the company had an obligation under the kendall square lease , staged through 2006 , to build-out the space into finished laboratory and office space .
this lease will expire in 2018 , and the company has the option to extend the term for two consecutive terms of ten years each , ultimately expiring in 2038 .
the company occupies and uses for its operations approximately 120000 square feet of the kendall square facility .
the company has sublease arrangements in place for the remaining rentable square footage of the kendall square facility , with initial terms that expires in april 2011 and august 2012 .
see note e , 201crestructuring 201d for further information. .

                                        | 2006    | 2005
--------------------------------------- | ------- | -------
research and development contract costs | $ 57761 | $ 20098
payroll and benefits                    | 25115   | 15832
professional fees                       | 3848    | 4816
other                                   | 4635    | 1315
total                                   | $ 91359 | $ 42061

research and development contract costs $ 57761 $ 20098 payroll and benefits 25115 15832 professional fees 3848 4816 4635 1315 $ 91359 $ 42061


2022 higher 2017 sales volumes , incremental year-over-year cost savings associated with restructuring and productivity improvement initiatives , costs associated with various growth investments made in 2016 and changes in currency exchange rates , partially offset by incremental year-over-year costs associated with various product development and sales and marketing growth investments : 60 basis points year-over-year operating profit margin comparisons were unfavorably impacted by : 2022 the incremental year-over-year net dilutive effect of acquired businesses : 20 basis points 2016 compared to 2015 year-over-year price increases in the segment contributed 0.3% ( 0.3 % ) to sales growth during 2016 as compared to 2015 and are reflected as a component of the change in sales from existing businesses .
sales from existing businesses in the segment 2019s transportation technologies businesses grew at a high-single digit rate during 2016 as compared to 2015 , due primarily to strong demand for dispenser , payment and point-of-sale systems , environmental compliance products as well as vehicle and fleet management products , partly offset by weaker year-over-year demand for compressed natural gas products .
as expected , beginning in the second half of 2016 , the business began to experience reduced emv-related demand for indoor point-of-sale solutions , as customers had largely upgraded to products that support indoor emv requirements in the prior year in response to the indoor liability shift .
however , demand increased on a year-over-year basis for dispensers and payment systems as customers in the united states continued to upgrade equipment driven primarily by the emv deadlines related to outdoor payment systems .
geographically , sales from existing businesses continued to increase on a year-over-year basis in the united states and to a lesser extent in asia and western europe .
sales from existing businesses in the segment 2019s automation & specialty components business declined at a low-single digit rate during 2016 as compared to 2015 .
the businesses experienced sequential year-over-year improvement in demand during the second half of 2016 as compared to the first half of 2016 .
during 2016 , year-over-year demand declined for engine retarder products due primarily to weakness in the north american heavy-truck market , partly offset by strong growth in china and europe .
in addition , year-over-year demand declined in certain medical and defense related end markets which were partly offset by increased year-over-year demand for industrial automation products particularly in china .
geographically , sales from existing businesses in the segment 2019s automation & specialty components businesses declined in north america , partly offset by growth in western europe and china .
sales from existing businesses in the segment 2019s franchise distribution business grew at a mid-single digit rate during 2016 , as compared to 2015 , due primarily to continued net increases in franchisees as well as continued growth in demand for professional tool products and tool storage products , primarily in the united states .
this growth was partly offset by year- over-year declines in wheel service equipment sales during 2016 .
operating profit margins increased 70 basis points during 2016 as compared to 2015 .
the following factors favorably impacted year-over-year operating profit margin comparisons : 2022 higher 2016 sales volumes , pricing improvements , incremental year-over-year cost savings associated with restructuring and productivity improvement initiatives and the incrementally favorable impact of the impairment of certain tradenames used in the segment in 2015 and 2016 , net of costs associated with various growth investments , product development and sales and marketing growth investments , higher year-over-year costs associated with restructuring actions and changes in currency exchange rates : 65 basis points 2022 the incremental net accretive effect in 2016 of acquired businesses : 5 basis points cost of sales and gross profit .

( $ in millions )   | for the year ended december 31 2017 | for the year ended december 31 2016 | for the year ended december 31 2015
------------------- | ----------------------------------- | ----------------------------------- | -----------------------------------
sales               | $ 6656.0                            | $ 6224.3                            | $ 6178.8
cost of sales       | -3357.5 ( 3357.5 )                  | -3191.5 ( 3191.5 )                  | -3178.8 ( 3178.8 )
gross profit        | 3298.5                              | 3032.8                              | 3000.0
gross profit margin | 49.6% ( 49.6 % )                    | 48.7% ( 48.7 % )                    | 48.6% ( 48.6 % )

the year-over-year increase in cost of sales during 2017 as compared to 2016 is due primarily to the impact of higher year- over-year sales volumes and changes in currency exchange rates partly offset by incremental year-over-year cost savings


table of contents cdw corporation and subsidiaries 6 .
goodwill and other intangible assets goodwill the changes in goodwill by reportable segment are as follows : ( in millions ) corporate business ( 2 ) public other ( 4 ) consolidated balance at december 31 , 2014 ( 1 ) $ 1045.9 $ 185.9 $ 911.3 $ 74.5 $ 2217.6 .

( in millions )                        | corporate | small business ( 2 ) | public  | other ( 4 )    | consolidated
-------------------------------------- | --------- | -------------------- | ------- | -------------- | --------------
balance at december 31 2014 ( 1 )      | $ 1045.9  | $ 185.9              | $ 911.3 | $ 74.5         | $ 2217.6
foreign currency translation           | 2014      | 2014                 | 2014    | -22.4 ( 22.4 ) | -22.4 ( 22.4 )
acquisition                            | 2014      | 2014                 | 2014    | 305.2          | 305.2
balance at december 31 2015 ( 1 )      | 1045.9    | 185.9                | 911.3   | 357.3          | 2500.4
foreign currency translation           | 2014      | 2014                 | 2014    | -45.4 ( 45.4 ) | -45.4 ( 45.4 )
cdw advanced services allocation ( 3 ) | 28.2      | 2014                 | 18.3    | -46.5 ( 46.5 ) | 2014
balance at december 31 2016 ( 1 )      | 1074.1    | 185.9                | 929.6   | 265.4          | 2455.0
foreign currency translation           | 2014      | 2014                 | 2014    | 24.6           | 24.6
balances as of december 31 2017 ( 1 )  | $ 1074.1  | $ 185.9              | $ 929.6 | $ 290.0        | $ 2479.6

balances as of december 31 , 2017 ( 1 ) $ 1074.1 $ 185.9 $ 929.6 $ 290.0 $ 2479.6 ( 1 ) goodwill is net of accumulated impairment losses of $ 1571 million , $ 354 million and $ 28 million related to the corporate , public and other segments , respectively .
( 2 ) amounts have been recast to present small business as its own operating and reportable segment .
( 3 ) effective january 1 , 2016 , the cdw advanced services business is included in the company's corporate and public segments .
( 4 ) other is comprised of canada and cdw uk operating segments .
with the establishment of small business as its own reporting unit , the company performed a quantitative analysis in order to allocate goodwill between corporate and small business .
based on the results of the quantitative analysis performed as of january 1 , 2017 , the company determined that the fair values of corporate and small business reporting units exceeded their carrying values by 227% ( 227 % ) and 308% ( 308 % ) , respectively , and no impairment existed .
december 1 , 2017 impairment analysis the company completed its annual impairment analysis as of december 1 , 2017 .
for the corporate , small business and uk reporting units , the company performed a qualitative analysis .
the company determined that it was more-likely- than-not that the individual fair values of the corporate , small business and uk reporting units exceeded the respective carrying values and therefore a quantitative impairment analysis was deemed unnecessary .
although uncertainty regarding the impact of the referendum on the uk 2019s membership of the european union ( 201ceu 201d ) , advising for the exit of the uk from the eu ( referred to as 201cbrexit 201d ) still exists in the current year , the company does not believe there to be any additional risk that would indicate the quantitative analysis performed in the prior year would have a different result .
therefore , a qualitative analysis was deemed appropriate for the uk reporting unit .
the company performed a quantitative analysis of the public and canada reporting units .
based on the results of the quantitative analysis , the company determined that the fair value of the public and canada reporting units exceeded their carrying values by 179% ( 179 % ) and 153% ( 153 % ) , respectively , and no impairment existed .
december 1 , 2016 impairment analysis the company completed its annual impairment analysis as of december 1 , 2016 .
for the corporate ( which , as of december 1 , 2016 , included small business ) , public and canada reporting units , the company performed a qualitative analysis .
the company determined that it was more-likely-than-not that the individual fair values of the corporate , public and canada reporting units exceeded the respective carrying values .
as a result of this determination , the quantitative impairment analysis was deemed unnecessary .
due to the substantial uncertainty regarding the impact of brexit , the company performed a quantitative analysis of the cdw uk reporting unit .
based on the results of the quantitative analysis , the company determined that the fair value of the cdw uk reporting unit exceeded its carrying value and no impairment existed.


page 31 of 94 other liquidity items cash payments required for long-term debt maturities , rental payments under noncancellable operating leases , purchase obligations and other commitments in effect at december 31 , 2007 , are summarized in the following table: .

( $ in millions )                         | payments due by period ( a ) total | payments due by period ( a ) less than 1 year | payments due by period ( a ) 1-3 years | payments due by period ( a ) 3-5 years | payments due by period ( a ) more than 5 years
----------------------------------------- | ---------------------------------- | --------------------------------------------- | -------------------------------------- | -------------------------------------- | ----------------------------------------------
long-term debt                            | $ 2302.6                           | $ 126.1                                       | $ 547.6                                | $ 1174.9                               | $ 454.0
capital lease obligations                 | 4.4                                | 1.0                                           | 0.8                                    | 0.5                                    | 2.1
interest payments on long-term debt ( b ) | 698.6                              | 142.9                                         | 246.3                                  | 152.5                                  | 156.9
operating leases                          | 218.5                              | 49.9                                          | 71.7                                   | 42.5                                   | 54.4
purchase obligations ( c )                | 6092.6                             | 2397.2                                        | 3118.8                                 | 576.6                                  | 2013
common stock repurchase agreements        | 131.0                              | 131.0                                         | 2013                                   | 2013                                   | 2013
legal settlement                          | 70.0                               | 70.0                                          | 2013                                   | 2013                                   | 2013
total payments on contractual obligations | $ 9517.7                           | $ 2918.1                                      | $ 3985.2                               | $ 1947.0                               | $ 667.4

total payments on contractual obligations $ 9517.7 $ 2918.1 $ 3985.2 $ 1947.0 $ 667.4 ( a ) amounts reported in local currencies have been translated at the year-end exchange rates .
( b ) for variable rate facilities , amounts are based on interest rates in effect at year end and do not contemplate the effects of hedging instruments .
( c ) the company 2019s purchase obligations include contracted amounts for aluminum , steel , plastic resin and other direct materials .
also included are commitments for purchases of natural gas and electricity , aerospace and technologies contracts and other less significant items .
in cases where variable prices and/or usage are involved , management 2019s best estimates have been used .
depending on the circumstances , early termination of the contracts may not result in penalties and , therefore , actual payments could vary significantly .
contributions to the company 2019s defined benefit pension plans , not including the unfunded german plans , are expected to be $ 49 million in 2008 .
this estimate may change based on plan asset performance .
benefit payments related to these plans are expected to be $ 66 million , $ 70 million , $ 74 million , $ 77 million and $ 82 million for the years ending december 31 , 2008 through 2012 , respectively , and a total of $ 473 million for the years 2013 through 2017 .
payments to participants in the unfunded german plans are expected to be approximately $ 26 million in each of the years 2008 through 2012 and a total of $ 136 million for the years 2013 through 2017 .
in accordance with united kingdom pension regulations , ball has provided an a38 million guarantee to the plan for its defined benefit plan in the united kingdom .
if the company 2019s credit rating falls below specified levels , ball will be required to either : ( 1 ) contribute an additional a38 million to the plan ; ( 2 ) provide a letter of credit to the plan in that amount or ( 3 ) if imposed by the appropriate regulatory agency , provide a lien on company assets in that amount for the benefit of the plan .
the guarantee can be removed upon approval by both ball and the pension plan trustees .
our share repurchase program in 2007 was $ 211.3 million , net of issuances , compared to $ 45.7 million net repurchases in 2006 and $ 358.1 million in 2005 .
the net repurchases included the $ 51.9 million settlement on january 5 , 2007 , of a forward contract entered into in december 2006 for the repurchase of 1200000 shares .
however , the 2007 net repurchases did not include a forward contract entered into in december 2007 for the repurchase of 675000 shares .
the contract was settled on january 7 , 2008 , for $ 31 million in cash .
on december 12 , 2007 , in a privately negotiated transaction , ball entered into an accelerated share repurchase agreement to buy $ 100 million of its common shares using cash on hand and available borrowings .
the company advanced the $ 100 million on january 7 , 2008 , and received approximately 2 million shares , which represented 90 percent of the total shares as calculated using the previous day 2019s closing price .
the exact number of shares to be repurchased under the agreement , which will be determined on the settlement date ( no later than june 5 , 2008 ) , is subject to an adjustment based on a weighted average price calculation for the period between the initial purchase date and the settlement date .
the company has the option to settle the contract in either cash or shares .
including the settlements of the forward share purchase contract and the accelerated share repurchase agreement , we expect to repurchase approximately $ 300 million of our common shares , net of issuances , in 2008 .
annual cash dividends paid on common stock were 40 cents per share in 2007 , 2006 and 2005 .
total dividends paid were $ 40.6 million in 2007 , $ 41 million in 2006 and $ 42.5 million in 2005.