credit facility , which was amended in 2013 and 2012 .
in march 2014 , the company 2019s credit facility was further amended to extend the maturity date to march 2019 .
the amount of the aggregate commitment is $ 3.990 billion ( the 201c2014 credit facility 201d ) .
the 2014 credit facility permits the company to request up to an additional $ 1.0 billion of borrowing capacity , subject to lender credit approval , increasing the overall size of the 2014 credit facility to an aggregate principal amount not to exceed $ 4.990 billion .
interest on borrowings outstanding accrues at a rate based on the applicable london interbank offered rate plus a spread .
the 2014 credit facility requires the company not to exceed a maximum leverage ratio ( ratio of net debt to earnings before interest , taxes , depreciation and amortization , where net debt equals total debt less unrestricted cash ) of 3 to 1 , which was satisfied with a ratio of less than 1 to 1 at december 31 , 2014 .
the 2014 credit facility provides back-up liquidity , funds ongoing working capital for general corporate purposes and funds various investment opportunities .
at december 31 , 2014 , the company had no amount outstanding under the 2014 credit facility .
commercial paper program .
on october 14 , 2009 , blackrock established a commercial paper program ( the 201ccp program 201d ) under which the company could issue unsecured commercial paper notes ( the 201ccp notes 201d ) on a private placement basis up to a maximum aggregate amount outstanding at any time of $ 3.0 billion .
blackrock increased the maximum aggregate amount that could be borrowed under the cp program to $ 3.5 billion in 2011 and to $ 3.785 billion in 2012 .
in april 2013 , blackrock increased the maximum aggregate amount for which the company could issue unsecured cp notes on a private-placement basis up to a maximum aggregate amount outstanding at any time of $ 3.990 billion .
the cp program is currently supported by the 2014 credit facility .
at december 31 , 2014 , blackrock had no cp notes outstanding .
long-term borrowings the carrying value and fair value of long-term borrowings estimated using market prices at december 31 , 2014 included the following : ( in millions ) maturity amount unamortized discount carrying value fair value .

( in millions )                   | maturity amount | unamortized discount | carrying value | fair value
--------------------------------- | --------------- | -------------------- | -------------- | ----------
1.375% ( 1.375 % ) notes due 2015 | $ 750           | $ 2014               | $ 750          | $ 753
6.25% ( 6.25 % ) notes due 2017   | 700             | -1 ( 1 )             | 699            | 785
5.00% ( 5.00 % ) notes due 2019   | 1000            | -2 ( 2 )             | 998            | 1134
4.25% ( 4.25 % ) notes due 2021   | 750             | -3 ( 3 )             | 747            | 825
3.375% ( 3.375 % ) notes due 2022 | 750             | -3 ( 3 )             | 747            | 783
3.50% ( 3.50 % ) notes due 2024   | 1000            | -3 ( 3 )             | 997            | 1029
total long-term borrowings        | $ 4950          | $ -12 ( 12 )         | $ 4938         | $ 5309

long-term borrowings at december 31 , 2013 had a carrying value of $ 4.939 billion and a fair value of $ 5.284 billion determined using market prices at the end of december 2013 .
2024 notes .
in march 2014 , the company issued $ 1.0 billion in aggregate principal amount of 3.50% ( 3.50 % ) senior unsecured and unsubordinated notes maturing on march 18 , 2024 ( the 201c2024 notes 201d ) .
the net proceeds of the 2024 notes were used to refinance certain indebtedness which matured in the fourth quarter of 2014 .
interest is payable semi-annually in arrears on march 18 and september 18 of each year , or approximately $ 35 million per year .
the 2024 notes may be redeemed prior to maturity at any time in whole or in part at the option of the company at a 201cmake-whole 201d redemption price .
the 2024 notes were issued at a discount of $ 3 million that is being amortized over the term of the notes .
the company incurred approximately $ 6 million of debt issuance costs , which are being amortized over the term of the 2024 notes .
at december 31 , 2014 , $ 6 million of unamortized debt issuance costs was included in other assets on the consolidated statement of financial condition .
2015 and 2022 notes .
in may 2012 , the company issued $ 1.5 billion in aggregate principal amount of unsecured unsubordinated obligations .
these notes were issued as two separate series of senior debt securities , including $ 750 million of 1.375% ( 1.375 % ) notes maturing in june 2015 ( the 201c2015 notes 201d ) and $ 750 million of 3.375% ( 3.375 % ) notes maturing in june 2022 ( the 201c2022 notes 201d ) .
net proceeds were used to fund the repurchase of blackrock 2019s common stock and series b preferred from barclays and affiliates and for general corporate purposes .
interest on the 2015 notes and the 2022 notes of approximately $ 10 million and $ 25 million per year , respectively , is payable semi-annually on june 1 and december 1 of each year , which commenced december 1 , 2012 .
the 2015 notes and 2022 notes may be redeemed prior to maturity at any time in whole or in part at the option of the company at a 201cmake-whole 201d redemption price .
the 201cmake-whole 201d redemption price represents a price , subject to the specific terms of the 2015 and 2022 notes and related indenture , that is the greater of ( a ) par value and ( b ) the present value of future payments that will not be paid because of an early redemption , which is discounted at a fixed spread over a comparable treasury security .
the 2015 notes and 2022 notes were issued at a discount of $ 5 million that is being amortized over the term of the notes .
the company incurred approximately $ 7 million of debt issuance costs , which are being amortized over the respective terms of the 2015 notes and 2022 notes .
at december 31 , 2014 , $ 4 million of unamortized debt issuance costs was included in other assets on the consolidated statement of financial condition .
2021 notes .
in may 2011 , the company issued $ 1.5 billion in aggregate principal amount of unsecured unsubordinated obligations .
these notes were issued as two separate series of senior debt securities , including $ 750 million of 4.25% ( 4.25 % ) notes maturing in may 2021 and $ 750 million of floating rate notes ( 201c2013 floating rate notes 201d ) , which were repaid in may 2013 at maturity .
net proceeds of this offering were used to fund the repurchase of blackrock 2019s series b preferred from affiliates of merrill lynch & co. , inc .
( 201cmerrill lynch 201d ) .
interest


interest expense .

                            | 2014    | 2013    | 2012
--------------------------- | ------- | ------- | -------
interest incurred           | $ 158.1 | $ 167.6 | $ 153.9
less : capitalized interest | 33.0    | 25.8    | 30.2
interest expense            | $ 125.1 | $ 141.8 | $ 123.7

2014 vs .
2013 interest incurred decreased $ 9.5 .
the decrease was primarily due to a lower average interest rate on the debt portfolio which reduced interest by $ 13 , partially offset by a higher average debt balance which increased interest by $ 6 .
the change in capitalized interest was driven by a higher carrying value in construction in progress .
2013 vs .
2012 interest incurred increased $ 13.7 .
the increase was driven primarily by a higher average debt balance for $ 41 , partially offset by a lower average interest rate on the debt portfolio of $ 24 .
the change in capitalized interest was driven by a decrease in project spending and a lower average interest rate .
effective tax rate the effective tax rate equals the income tax provision divided by income from continuing operations before taxes .
refer to note 22 , income taxes , to the consolidated financial statements for details on factors affecting the effective tax rate .
2014 vs .
2013 on a gaap basis , the effective tax rate was 27.0% ( 27.0 % ) and 22.8% ( 22.8 % ) in 2014 and 2013 , respectively .
the effective tax rate was higher in the current year primarily due to the goodwill impairment charge of $ 305.2 , which was not deductible for tax purposes , and the chilean tax reform enacted in september 2014 which increased income tax expense by $ 20.6 .
these impacts were partially offset by an income tax benefit of $ 51.6 associated with losses from transactions and a tax election in a non-u.s .
subsidiary .
the prior year rate included income tax benefits of $ 73.7 related to the business restructuring and cost reduction plans and $ 3.7 for the advisory costs .
refer to note 4 , business restructuring and cost reduction actions ; note 9 , goodwill ; note 22 , income taxes ; and note 23 , supplemental information , to the consolidated financial statements for details on these transactions .
on a non-gaap basis , the effective tax rate was 24.0% ( 24.0 % ) and 24.2% ( 24.2 % ) in 2014 and 2013 , respectively .
2013 vs .
2012 on a gaap basis , the effective tax rate was 22.8% ( 22.8 % ) and 21.9% ( 21.9 % ) in 2013 and 2012 , respectively .
the effective rate in 2013 includes income tax benefits of $ 73.7 related to the business restructuring and cost reduction plans and $ 3.7 for the advisory costs .
the effective rate in 2012 includes income tax benefits of $ 105.0 related to the business restructuring and cost reduction plans , $ 58.3 related to the second quarter spanish tax ruling , and $ 3.7 related to the customer bankruptcy charge , offset by income tax expense of $ 43.8 related to the first quarter spanish tax settlement and $ 31.3 related to the gain on the previously held equity interest in da nanomaterials .
refer to note 4 , business restructuring and cost reduction actions ; note 5 , business combinations ; note 22 , income taxes ; and note 23 , supplemental information , to the consolidated financial statements for details on these transactions .
on a non-gaap basis , the effective tax rate was 24.2% ( 24.2 % ) in both 2013 and 2012 .
discontinued operations during the second quarter of 2012 , the board of directors authorized the sale of our homecare business , which had previously been reported as part of the merchant gases operating segment .
in 2012 , we sold the majority of our homecare business to the linde group for sale proceeds of 20ac590 million ( $ 777 ) and recognized a gain of $ 207.4 ( $ 150.3 after-tax , or $ .70 per share ) .
in addition , an impairment charge of $ 33.5 ( $ 29.5 after-tax , or $ .14 per share ) was recorded to write down the remaining business , which was primarily in the united kingdom and ireland , to its estimated net realizable value .
in 2013 , we recorded an additional charge of $ 18.7 ( $ 13.6 after-tax , or $ .06 per share ) to update our estimate of the net realizable value .
in 2014 , a gain of $ 3.9 was recognized for the sale of the remaining homecare business and settlement of contingencies on the sale to the linde group .
refer to note 3 , discontinued operations , to the consolidated financial statements for additional details on this business.


74 2013 ppg annual report and form 10-k 22 .
separation and merger transaction on january 28 , 2013 , the company completed the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary , eagle spinco inc. , with a subsidiary of georgia gulf corporation in a tax ef ficient reverse morris trust transaction ( the 201ctransaction 201d ) .
pursuant to the merger , eagle spinco , the entity holding ppg's former commodity chemicals business , became a wholly-owned subsidiary of georgia gulf .
the closing of the merger followed the expiration of the related exchange offer and the satisfaction of certain other conditions .
the combined company formed by uniting georgia gulf with ppg's former commodity chemicals business is named axiall corporation ( 201caxiall 201d ) .
ppg holds no ownership interest in axiall .
ppg received the necessary ruling from the internal revenue service and as a result this transaction was generally tax free to ppg and its shareholders in the united states and canada .
under the terms of the exchange offer , 35249104 shares of eagle spinco common stock were available for distribution in exchange for shares of ppg common stock accepted in the offer .
following the merger , each share of eagle spinco common stock automatically converted into the right to receive one share of axiall corporation common stock .
accordingly , ppg shareholders who tendered their shares of ppg common stock as part of this offer received 3.2562 shares of axiall common stock for each share of ppg common stock accepted for exchange .
ppg was able to accept the maximum of 10825227 shares of ppg common stock for exchange in the offer , and thereby , reduced its outstanding shares by approximately 7% ( 7 % ) .
the completion of this exchange offer was a non-cash financing transaction , which resulted in an increase in "treasury stock" at a cost of $ 1.561 billion based on the ppg closing stock price on january 25 , 2013 .
under the terms of the transaction , ppg received $ 900 million of cash and 35.2 million shares of axiall common stock ( market value of $ 1.8 billion on january 25 , 2013 ) which was distributed to ppg shareholders by the exchange offer as described above .
in addition , ppg received $ 67 million in cash for a preliminary post-closing working capital adjustment under the terms of the transaction agreements .
the net assets transferred to axiall included $ 27 million of cash on the books of the business transferred .
in the transaction , ppg transferred environmental remediation liabilities , defined benefit pension plan assets and liabilities and other post-employment benefit liabilities related to the commodity chemicals business to axiall .
during the first quarter of 2013 , ppg recorded a gain of $ 2.2 billion on the transaction reflecting the excess of the sum of the cash proceeds received and the cost ( closing stock price on january 25 , 2013 ) of the ppg shares tendered and accepted in the exchange for the 35.2 million shares of axiall common stock over the net book value of the net assets of ppg's former commodity chemicals business .
the transaction resulted in a net partial settlement loss of $ 33 million associated with the spin out and termination of defined benefit pension liabilities and the transfer of other post-retirement benefit liabilities under the terms of the transaction .
the company also incurred $ 14 million of pretax expense , primarily for professional services related to the transaction in 2013 as well as approximately $ 2 million of net expense related to certain retained obligations and post-closing adjustments under the terms of the transaction agreements .
the net gain on the transaction includes these related losses and expenses .
the results of operations and cash flows of ppg's former commodity chemicals business for january 2013 and the net gain on the transaction are reported as results from discontinued operations for the year -ended december 31 , 2013 .
in prior periods presented , the results of operations and cash flows of ppg's former commodity chemicals business have been reclassified from continuing operations and presented as results from discontinued operations .
ppg will provide axiall with certain transition services for up to 24 months following the closing date of the transaction .
these services include logistics , purchasing , finance , information technology , human resources , tax and payroll processing .
the net sales and income before income taxes of the commodity chemicals business that have been reclassified and reported as discontinued operations are presented in the table below: .

millions                                                                            | year-ended 2013 | year-ended 2012 | year-ended 2011
----------------------------------------------------------------------------------- | --------------- | --------------- | ---------------
net sales                                                                           | $ 108           | $ 1688          | $ 1732
income from operations before income tax                                            | $ 2014          | $ 345           | $ 376
net gain from separation and merger of commodity chemicals business                 | 2192            | 2014            | 2014
income tax expense                                                                  | -5 ( 5 )        | 117             | 126
income from discontinued operations net of tax                                      | $ 2197          | $ 228           | $ 250
less : net income attributable to non-controlling interests discontinued operations | $ 2014          | $ -13 ( 13 )    | $ -13 ( 13 )
net income from discontinued operations ( attributable to ppg )                     | $ 2197          | $ 215           | $ 237

income from discontinued operations , net of tax $ 2197 $ 228 $ 250 less : net income attributable to non- controlling interests , discontinued operations $ 2014 $ ( 13 ) $ ( 13 ) net income from discontinued operations ( attributable to ppg ) $ 2197 $ 215 $ 237 during 2012 , $ 21 million of business separation costs are included within "income from discontinued operations , net." notes to the consolidated financial statements


stock option gains previously deferred by those participants pursuant to the terms of the deferred compensation plan and earnings on those deferred amounts .
as a result of certain provisions of the american jobs creation act , participants had the opportunity until december 31 , 2005 to elect to withdraw amounts previously deferred .
11 .
lease commitments the company leases certain of its facilities , equipment and software under various operating leases that expire at various dates through 2022 .
the lease agreements frequently include renewal and escalation clauses and require the company to pay taxes , insurance and maintenance costs .
total rental expense under operating leases was approximately $ 43 million in fiscal 2007 , $ 45 million in fiscal 2006 and $ 44 million in fiscal 2005 .
the following is a schedule of future minimum rental payments required under long-term operating leases at november 3 , 2007 : fiscal years operating leases .

fiscal years | operating leases
------------ | ----------------
2008         | $ 30774
2009         | $ 25906
2010         | $ 13267
2011         | $ 5430
2012         | $ 3842
later years  | $ 12259
total        | $ 91478

12 .
commitments and contingencies tentative settlement of the sec 2019s previously announced stock option investigation in the company 2019s 2004 form 10-k filing , the company disclosed that the securities and exchange com- mission ( sec ) had initiated an inquiry into its stock option granting practices , focusing on options that were granted shortly before the issuance of favorable financial results .
on november 15 , 2005 , the company announced that it had reached a tentative settlement with the sec .
at all times since receiving notice of this inquiry , the company has cooperated with the sec .
in november 2005 , the company and its president and ceo , mr .
jerald g .
fishman , made an offer of settlement to the staff of the sec .
the settlement has been submitted to the commission for approval .
there can be no assurance a final settlement will be so approved .
the sec 2019s inquiry focused on two separate issues .
the first issue concerned the company 2019s disclosure regarding grants of options to employees and directors prior to the release of favorable financial results .
specifically , the issue related to options granted to employees ( including officers ) of the company on november 30 , 1999 and to employees ( including officers ) and directors of the company on november 10 , 2000 .
the second issue concerned the grant dates for options granted to employees ( including officers ) in 1998 and 1999 , and the grant date for options granted to employees ( including officers ) and directors in 2001 .
specifically , the settlement would conclude that the appropriate grant date for the september 4 , 1998 options should have been september 8th ( which is one trading day later than the date that was used to price the options ) ; the appropriate grant date for the november 30 , 1999 options should have been november 29th ( which is one trading day earlier than the date that was used ) ; and the appropriate grant date for the july 18 , 2001 options should have been july 26th ( which is five trading days after the original date ) .
analog devices , inc .
notes to consolidated financial statements 2014 ( continued )


entergy new orleans , inc .
management's financial discussion and analysis results of operations net income ( loss ) 2004 compared to 2003 net income increased $ 20.2 million primarily due to higher net revenue .
2003 compared to 2002 entergy new orleans had net income of $ 7.9 million in 2003 compared to a net loss in 2002 .
the increase was due to higher net revenue and lower interest expense , partially offset by higher other operation and maintenance expenses and depreciation and amortization expenses .
net revenue 2004 compared to 2003 net revenue , which is entergy new orleans' measure of gross margin , consists of operating revenues net of : 1 ) fuel , fuel-related , and purchased power expenses and 2 ) other regulatory credits .
following is an analysis of the change in net revenue comparing 2004 to 2003. .

                                         | ( in millions )
---------------------------------------- | ---------------
2003 net revenue                         | $ 208.3
base rates                               | 10.6
volume/weather                           | 8.3
2004 deferrals                           | 7.5
price applied to unbilled electric sales | 3.7
other                                    | 0.6
2004 net revenue                         | $ 239.0

the increase in base rates was effective june 2003 .
the rate increase is discussed in note 2 to the domestic utility companies and system energy financial statements .
the volume/weather variance is primarily due to increased billed electric usage of 162 gwh in the industrial service sector .
the increase was partially offset by milder weather in the residential and commercial sectors .
the 2004 deferrals variance is due to the deferral of voluntary severance plan and fossil plant maintenance expenses in accordance with a stipulation approved by the city council in august 2004 .
the stipulation allows for the recovery of these costs through amortization of a regulatory asset .
the voluntary severance plan and fossil plant maintenance expenses are being amortized over a five-year period that became effective january 2004 and january 2003 , respectively .
the formula rate plan is discussed in note 2 to the domestic utility companies and system energy financial statements .
the price applied to unbilled electric sales variance is due to an increase in the fuel price applied to unbilled sales.


masco corporation notes to consolidated financial statements ( continued ) o .
segment information ( continued ) ( 1 ) included in net sales were export sales from the u.s .
of $ 229 million , $ 241 million and $ 246 million in 2012 , 2011 and 2010 , respectively .
( 2 ) excluded from net sales were intra-company sales between segments of approximately two percent of net sales in each of 2012 , 2011 and 2010 .
( 3 ) included in net sales were sales to one customer of $ 2143 million , $ 1984 million and $ 1993 million in 2012 , 2011 and 2010 , respectively .
such net sales were included in the following segments : cabinets and related products , plumbing products , decorative architectural products and other specialty products .
( 4 ) net sales from the company 2019s operations in the u.s .
were $ 5793 million , $ 5394 million and $ 5618 million in 2012 , 2011 and 2010 , respectively .
( 5 ) net sales , operating ( loss ) profit , property additions and depreciation and amortization expense for 2012 , 2011 and 2010 excluded the results of businesses reported as discontinued operations in 2012 , 2011 and 2010 .
( 6 ) included in segment operating profit ( loss ) for 2012 was an impairment charge for other intangible assets as follows : other specialty products 2013 $ 42 million .
included in segment operating ( loss ) profit for 2011 were impairment charges for goodwill and other intangible assets as follows : cabinets and related products 2013 $ 44 million ; plumbing products 2013 $ 1 million ; decorative architectural products 2013 $ 75 million ; and other specialty products 2013 $ 374 million .
included in segment operating ( loss ) profit for 2010 were impairment charges for goodwill and other intangible assets as follows : plumbing products 2013 $ 1 million ; and installation and other services 2013 $ 697 million .
( 7 ) general corporate expense , net included those expenses not specifically attributable to the company 2019s segments .
( 8 ) the charge for litigation settlement , net in 2012 primarily relates to a business in the installation and other services segment and in 2011 relates to business units in the cabinets and related products and the other specialty products segments .
( 9 ) long-lived assets of the company 2019s operations in the u.s .
and europe were $ 2795 million and $ 567 million , $ 2964 million and $ 565 million , and $ 3684 million and $ 617 million at december 31 , 2012 , 2011 and 2010 , respectively .
( 10 ) segment assets for 2012 and 2011 excluded the assets of businesses reported as discontinued operations in the respective years .
p .
severance costs as part of the company 2019s continuing review of its operations , actions were taken during 2012 , 2011 and 2010 to respond to market conditions .
the company recorded charges related to severance and early retirement programs of $ 36 million , $ 17 million and $ 14 million for the years ended december 31 , 2012 , 2011 and 2010 , respectively .
such charges are principally reflected in the statement of operations in selling , general and administrative expenses and were paid when incurred .
q .
other income ( expense ) , net other , net , which is included in other income ( expense ) , net , was as follows , in millions: .

                                                 | 2012     | 2011     | 2010
------------------------------------------------ | -------- | -------- | --------
income from cash and cash investments            | $ 6      | $ 8      | $ 6
other interest income                            | 1        | 1        | 1
income from financial investments net ( note e ) | 24       | 73       | 9
other items net                                  | -4 ( 4 ) | -5 ( 5 ) | -9 ( 9 )
total other net                                  | $ 27     | $ 77     | $ 7

other items , net , included realized foreign currency transaction losses of $ 2 million , $ 5 million and $ 2 million in 2012 , 2011 and 2010 , respectively , as well as other miscellaneous items.


35% ( 35 % ) due primarily to certain undistributed foreign earnings for which no u.s .
taxes are provided because such earnings are intended to be indefinitely reinvested outside the u.s .
as of september 24 , 2011 , the company had deferred tax assets arising from deductible temporary differences , tax losses , and tax credits of $ 3.2 billion , and deferred tax liabilities of $ 9.2 billion .
management believes it is more likely than not that forecasted income , including income that may be generated as a result of certain tax planning strategies , together with future reversals of existing taxable temporary differences , will be sufficient to fully recover the deferred tax assets .
the company will continue to evaluate the realizability of deferred tax assets quarterly by assessing the need for and amount of a valuation allowance .
the internal revenue service ( the 201cirs 201d ) has completed its field audit of the company 2019s federal income tax returns for the years 2004 through 2006 and proposed certain adjustments .
the company has contested certain of these adjustments through the irs appeals office .
the irs is currently examining the years 2007 through 2009 .
all irs audit issues for years prior to 2004 have been resolved .
in addition , the company is subject to audits by state , local , and foreign tax authorities .
management believes that adequate provisions have been made for any adjustments that may result from tax examinations .
however , the outcome of tax audits cannot be predicted with certainty .
if any issues addressed in the company 2019s tax audits are resolved in a manner not consistent with management 2019s expectations , the company could be required to adjust its provision for income taxes in the period such resolution occurs .
liquidity and capital resources the following table presents selected financial information and statistics as of and for the three years ended september 24 , 2011 ( in millions ) : .

                                                | 2011    | 2010    | 2009
----------------------------------------------- | ------- | ------- | -------
cash cash equivalents and marketable securities | $ 81570 | $ 51011 | $ 33992
accounts receivable net                         | $ 5369  | $ 5510  | $ 3361
inventories                                     | $ 776   | $ 1051  | $ 455
working capital                                 | $ 17018 | $ 20956 | $ 20049
annual operating cash flow                      | $ 37529 | $ 18595 | $ 10159

cash , cash equivalents and marketable securities increased $ 30.6 billion or 60% ( 60 % ) during 2011 .
the principal components of this net increase was the cash generated by operating activities of $ 37.5 billion , which was partially offset by payments for acquisition of property , plant and equipment of $ 4.3 billion , payments for acquisition of intangible assets of $ 3.2 billion and payments made in connection with business acquisitions , net of cash acquired , of $ 244 million .
the company believes its existing balances of cash , cash equivalents and marketable securities will be sufficient to satisfy its working capital needs , capital asset purchases , outstanding commitments and other liquidity requirements associated with its existing operations over the next 12 months .
the company 2019s marketable securities investment portfolio is invested primarily in highly rated securities and its policy generally limits the amount of credit exposure to any one issuer .
the company 2019s investment policy requires investments to generally be investment grade with the objective of minimizing the potential risk of principal loss .
as of september 24 , 2011 and september 25 , 2010 , $ 54.3 billion and $ 30.8 billion , respectively , of the company 2019s cash , cash equivalents and marketable securities were held by foreign subsidiaries and are generally based in u.s .
dollar-denominated holdings .
amounts held by foreign subsidiaries are generally subject to u.s .
income taxation on repatriation to the u.s .
capital assets the company 2019s capital expenditures were $ 4.6 billion during 2011 , consisting of approximately $ 614 million for retail store facilities and $ 4.0 billion for other capital expenditures , including product tooling and manufacturing


u.s .
equity securities and international equity securities categorized as level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year .
for u.s .
equity securities and international equity securities not traded on an active exchange , or if the closing price is not available , the trustee obtains indicative quotes from a pricing vendor , broker or investment manager .
these securities are categorized as level 2 if the custodian obtains corroborated quotes from a pricing vendor or categorized as level 3 if the custodian obtains uncorroborated quotes from a broker or investment manager .
commingled equity funds categorized as level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year .
for commingled equity funds not traded on an active exchange , or if the closing price is not available , the trustee obtains indicative quotes from a pricing vendor , broker or investment manager .
these securities are categorized as level 2 if the custodian obtains corroborated quotes from a pricing vendor .
fixed income investments categorized as level 2 are valued by the trustee using pricing models that use verifiable observable market data ( e.g. , interest rates and yield curves observable at commonly quoted intervals and credit spreads ) , bids provided by brokers or dealers or quoted prices of securities with similar characteristics .
fixed income investments are categorized at level 3 when valuations using observable inputs are unavailable .
the trustee obtains pricing based on indicative quotes or bid evaluations from vendors , brokers or the investment manager .
commodities are traded on an active commodity exchange and are valued at their closing prices on the last trading day of the certain commingled equity funds , consisting of equity mutual funds , are valued using the nav.aa thenavaa valuations are based on the underlying investments and typically redeemable within 90 days .
private equity funds consist of partnership and co-investment funds .
the navaa is based on valuation models of the underlying securities , which includes unobservable inputs that cannot be corroborated using verifiable observable market data .
these funds typically have redemption periods between eight and 12 years .
real estate funds consist of partnerships , most of which are closed-end funds , for which the navaa is based on valuationmodels and periodic appraisals .
these funds typically have redemption periods between eight and 10 years .
hedge funds consist of direct hedge funds forwhich thenavaa is generally based on the valuation of the underlying investments .
redemptions in hedge funds are based on the specific terms of each fund , and generally range from a minimum of one month to several months .
contributions and expected benefit payments the funding of our qualified defined benefit pension plans is determined in accordance with erisa , as amended by the ppa , and in a manner consistent with cas and internal revenue code rules .
there were no material contributions to our qualified defined benefit pension plans during 2017 .
we will make contributions of $ 5.0 billion to our qualified defined benefit pension plans in 2018 , including required and discretionary contributions.as a result of these contributions , we do not expect any material qualified defined benefit cash funding will be required until 2021.we plan to fund these contributions using a mix of cash on hand and commercial paper .
while we do not anticipate a need to do so , our capital structure and resources would allow us to issue new debt if circumstances change .
the following table presents estimated future benefit payments , which reflect expected future employee service , as of december 31 , 2017 ( in millions ) : .

                                         | 2018   | 2019   | 2020   | 2021   | 2022   | 2023 2013 2027
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | --------------
qualified defined benefit pension plans  | $ 2450 | $ 2480 | $ 2560 | $ 2630 | $ 2700 | $ 14200
retiree medical and life insurance plans | 180    | 180    | 180    | 180    | 180    | 820

defined contribution plans wemaintain a number of defined contribution plans , most with 401 ( k ) features , that cover substantially all of our employees .
under the provisions of our 401 ( k ) plans , wematchmost employees 2019 eligible contributions at rates specified in the plan documents .
our contributions were $ 613 million in 2017 , $ 617 million in 2016 and $ 393 million in 2015 , the majority of which were funded using our common stock .
our defined contribution plans held approximately 35.5 million and 36.9 million shares of our common stock as of december 31 , 2017 and 2016.


equity compensation plan information the following table presents the equity securities available for issuance under our equity compensation plans as of december 31 , 2017 .
equity compensation plan information plan category number of securities to be issued upon exercise of outstanding options , warrants and rights ( 1 ) weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( a ) ( b ) ( c ) equity compensation plans approved by security holders 448859 $ 0.00 4087587 equity compensation plans not approved by security holders ( 2 ) 2014 2014 2014 .

plan category                                                    | number of securities to be issued upon exercise of outstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-average exercise price of outstanding optionswarrants and rights | number of securities remaining available for future issuance under equity compensation plans ( excluding securitiesreflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders           | 448859                                                                                | $ 0.00                                                                    | 4087587
equity compensation plans not approved by security holders ( 2 ) | 2014                                                                                | 2014                                                                      | 2014
total                                                            | 448859                                                                                | $ 0.00                                                                    | 4087587

( 1 ) includes grants made under the huntington ingalls industries , inc .
2012 long-term incentive stock plan ( the "2012 plan" ) , which was approved by our stockholders on may 2 , 2012 , and the huntington ingalls industries , inc .
2011 long-term incentive stock plan ( the "2011 plan" ) , which was approved by the sole stockholder of hii prior to its spin-off from northrop grumman corporation .
of these shares , 27123 were stock rights granted under the 2011 plan .
in addition , this number includes 28763 stock rights , 3075 restricted stock rights , and 389898 restricted performance stock rights granted under the 2012 plan , assuming target performance achievement .
( 2 ) there are no awards made under plans not approved by security holders .
item 13 .
certain relationships and related transactions , and director independence information as to certain relationships and related transactions and director independence will be incorporated herein by reference to the proxy statement for our 2018 annual meeting of stockholders , to be filed within 120 days after the end of the company 2019s fiscal year .
item 14 .
principal accountant fees and services information as to principal accountant fees and services will be incorporated herein by reference to the proxy statement for our 2018 annual meeting of stockholders , to be filed within 120 days after the end of the company 2019s fiscal year.


market risk management 2013 equity and other investment equity investment risk is the risk of potential losses associated with investing in both private and public equity markets .
in addition to extending credit , taking deposits , securities underwriting and trading financial instruments , we make and manage direct investments in a variety of transactions , including management buyouts , recapitalizations and growth financings in a variety of industries .
we also have investments in affiliated and non-affiliated funds that make similar investments in private equity and in debt and equity-oriented hedge funds .
the economic and/or book value of these investments and other assets such as loan servicing rights are directly affected by changes in market factors .
the primary risk measurement for equity and other investments is economic capital .
economic capital is a common measure of risk for credit , market and operational risk .
it is an estimate of the potential value depreciation over a one year horizon commensurate with solvency expectations of an institution rated single-a by the credit rating agencies .
given the illiquid nature of many of these types of investments , it can be a challenge to determine their fair values .
see note 7 fair value in the notes to consolidated financial statements in item 8 of this report for additional information .
various pnc business units manage our equity and other investment activities .
our businesses are responsible for making investment decisions within the approved policy limits and associated guidelines .
a summary of our equity investments follows : table 54 : equity investments summary in millions december 31 december 31 .

in millions                  | december 312014 | december 312013
---------------------------- | --------------- | ---------------
blackrock                    | $ 6265          | $ 5940
tax credit investments ( a ) | 2616            | 2572
private equity               | 1615            | 1656
visa                         | 77              | 158
other                        | 155             | 234
total                        | $ 10728         | $ 10560

( a ) the december 31 , 2013 amount has been updated to reflect the first quarter 2014 adoption of asu 2014-01 related to investments in low income housing tax credits .
blackrock pnc owned approximately 35 million common stock equivalent shares of blackrock equity at december 31 , 2014 , accounted for under the equity method .
the primary risk measurement , similar to other equity investments , is economic capital .
the business segments review section of this item 7 includes additional information about blackrock .
tax credit investments included in our equity investments are direct tax credit investments and equity investments held by consolidated partnerships which totaled $ 2.6 billion at both december 31 , 2014 and december 31 , 2013 .
these equity investment balances include unfunded commitments totaling $ 717 million and $ 802 million at december 31 , 2014 and december 31 , 2013 , respectively .
these unfunded commitments are included in other liabilities on our consolidated balance sheet .
note 2 loan sale and servicing activities and variable interest entities in the notes to consolidated financial statements in item 8 of this report has further information on tax credit investments .
private equity the private equity portfolio is an illiquid portfolio comprised of mezzanine and equity investments that vary by industry , stage and type of investment .
private equity investments carried at estimated fair value totaled $ 1.6 billion at december 31 , 2014 and $ 1.7 billion at december 31 , 2013 .
as of december 31 , 2014 , $ 1.1 billion was invested directly in a variety of companies and $ .5 billion was invested indirectly through various private equity funds .
included in direct investments are investment activities of two private equity funds that are consolidated for financial reporting purposes .
the noncontrolling interests of these funds totaled $ 212 million as of december 31 , 2014 .
the interests held in indirect private equity funds are not redeemable , but pnc may receive distributions over the life of the partnership from liquidation of the underlying investments .
see item 1 business 2013 supervision and regulation and item 1a risk factors of this report for discussion of the potential impacts of the volcker rule provisions of dodd-frank on our interests in and sponsorship of private funds covered by the volcker rule .
our unfunded commitments related to private equity totaled $ 140 million at december 31 , 2014 compared with $ 164 million at december 31 , 2013 .
the pnc financial services group , inc .
2013 form 10-k 93


marathon oil corporation notes to consolidated financial statements ( g ) this obligation relates to a lease of equipment at united states steel 2019s clairton works cokemaking facility in pennsylvania .
we are the primary obligor under this lease .
under the financial matters agreement , united states steel has assumed responsibility for all obligations under this lease .
this lease is an amortizing financing with a final maturity of 2012 .
( h ) these notes are senior secured notes of marathon oil canada corporation .
the notes are secured by substantially all of marathon oil canada corporation 2019s assets .
in january 2008 , we provided a full and unconditional guarantee covering the payment of all principal and interest due under the senior notes .
( i ) these obligations as of december 31 , 2009 include $ 36 million related to assets under construction at that date for which a capital lease will commence upon completion of construction .
the amounts currently reported are based upon the percent of construction completed as of december 31 , 2009 and therefore do not reflect future minimum lease obligations of $ 164 million related to the asset .
( j ) payments of long-term debt for the years 2010 - 2014 are $ 102 million , $ 246 million , $ 1492 million , $ 287 million and $ 802 million .
united steel is due to pay $ 17 million in 2010 , $ 161 million in 2011 , $ 19 million in 2012 , and $ 11 for year 2014 .
( k ) in the event of a change in control , as defined in the related agreements , debt obligations totaling $ 662 million at december 31 , 2009 , may be declared immediately due and payable .
( l ) see note 16 for information on interest rate swaps .
20 .
asset retirement obligations the following summarizes the changes in asset retirement obligations : ( in millions ) 2009 2008 .

( in millions )                                                           | 2009       | 2008
------------------------------------------------------------------------- | ---------- | ------------
asset retirement obligations as of january 1                              | $ 965      | $ 1134
liabilities incurred including acquisitions                               | 14         | 30
liabilities settled                                                       | -65 ( 65 ) | -94 ( 94 )
accretion expense ( included in depreciation depletion and amortization ) | 64         | 66
revisions to previous estimates                                           | 124        | 24
held for sale                                                             | -          | -195 ( 195 )
asset retirement obligations as of december 31 ( a )                      | $ 1102     | $ 965

asset retirement obligations as of december 31 ( a ) $ 1102 $ 965 ( a ) includes asset retirement obligation of $ 3 and $ 2 million classified as short-term at december 31 , 2009 , and 2008.


entergy corporation and subsidiaries notes to financial statements ( a ) consists of pollution control revenue bonds and environmental revenue bonds , some of which are secured by collateral first mortgage bonds .
( b ) these notes do not have a stated interest rate , but have an implicit interest rate of 4.8% ( 4.8 % ) .
( c ) pursuant to the nuclear waste policy act of 1982 , entergy 2019s nuclear owner/licensee subsidiaries have contracts with the doe for spent nuclear fuel disposal service .
the contracts include a one-time fee for generation prior to april 7 , 1983 .
entergy arkansas is the only entergy company that generated electric power with nuclear fuel prior to that date and includes the one-time fee , plus accrued interest , in long-term debt .
( d ) see note 10 to the financial statements for further discussion of the waterford 3 lease obligation and entergy louisiana 2019s acquisition of the equity participant 2019s beneficial interest in the waterford 3 leased assets and for further discussion of the grand gulf lease obligation .
( e ) this note does not have a stated interest rate , but has an implicit interest rate of 7.458% ( 7.458 % ) .
( f ) the fair value excludes lease obligations of $ 57 million at entergy louisiana and $ 34 million at system energy , and long-term doe obligations of $ 182 million at entergy arkansas , and includes debt due within one year .
fair values are classified as level 2 in the fair value hierarchy discussed in note 15 to the financial statements and are based on prices derived from inputs such as benchmark yields and reported trades .
the annual long-term debt maturities ( excluding lease obligations and long-term doe obligations ) for debt outstanding as of december 31 , 2016 , for the next five years are as follows : amount ( in thousands ) .

     | amount ( in thousands )
---- | -----------------------
2017 | $ 307403
2018 | $ 828084
2019 | $ 724899
2020 | $ 795000
2021 | $ 1674548

in november 2000 , entergy 2019s non-utility nuclear business purchased the fitzpatrick and indian point 3 power plants in a seller-financed transaction .
as part of the purchase agreement with nypa , entergy recorded a liability representing the net present value of the payments entergy would be liable to nypa for each year that the fitzpatrick and indian point 3 power plants would run beyond their respective original nrc license expiration date .
in october 2015 , entergy announced a planned shutdown of fitzpatrick at the end of its fuel cycle .
as a result of the announcement , entergy reduced this liability by $ 26.4 million pursuant to the terms of the purchase agreement .
in august 2016 , entergy entered into a trust transfer agreement with nypa to transfer the decommissioning trust funds and decommissioning liabilities for the indian point 3 and fitzpatrick plants to entergy .
as part of the trust transfer agreement , the original decommissioning agreements were amended , and the entergy subsidiaries 2019 obligation to make additional license extension payments to nypa was eliminated .
in the third quarter 2016 , entergy removed the note payable of $ 35.1 million from the consolidated balance sheet .
entergy louisiana , entergy mississippi , entergy texas , and system energy have obtained long-term financing authorizations from the ferc that extend through october 2017 .
entergy arkansas has obtained long-term financing authorization from the apsc that extends through december 2018 .
entergy new orleans has obtained long-term financing authorization from the city council that extends through june 2018 .
capital funds agreement pursuant to an agreement with certain creditors , entergy corporation has agreed to supply system energy with sufficient capital to : 2022 maintain system energy 2019s equity capital at a minimum of 35% ( 35 % ) of its total capitalization ( excluding short- term debt ) ;


the following tables present a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs ( level 3 ) for 2017 and 2016 , respectively: .

                                        | level 3
--------------------------------------- | -------
balance as of january 1 2017            | $ 140
actual return on assets                 | 2
purchases issuances and settlements net | 136
balance as of december 31 2017          | $ 278

purchases , issuances and settlements , net .
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( 4 ) balance as of december 31 , 2016 .
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$ 140 the company 2019s postretirement benefit plans have different levels of funded status and the assets are held under various trusts .
the investments and risk mitigation strategies for the plans are tailored specifically for each trust .
in setting new strategic asset mixes , consideration is given to the likelihood that the selected asset allocation will effectively fund the projected plan liabilities and meet the risk tolerance criteria of the company .
the company periodically updates the long-term , strategic asset allocations for these plans through asset liability studies and uses various analytics to determine the optimal asset allocation .
considerations include plan liability characteristics , liquidity needs , funding requirements , expected rates of return and the distribution of returns .
strategies to address the goal of ensuring sufficient assets to pay benefits include target allocations to a broad array of asset classes and , within asset classes , strategies are employed to provide adequate returns , diversification and liquidity .
in 2012 , the company implemented a de-risking strategy for the american water pension plan after conducting an asset-liability study to reduce the volatility of the funded status of the plan .
as part of the de-risking strategy , the company revised the asset allocations to increase the matching characteristics of fixed-income assets relative to liabilities .
the fixed income portion of the portfolio was designed to match the bond-like and long-dated nature of the postretirement liabilities .
in 2017 , the company further increased its exposure to liability-driven investing and increased its fixed-income allocation to 50% ( 50 % ) , up from 40% ( 40 % ) , in an effort to further decrease the funded status volatility of the plan and hedge the portfolio from movements in interest rates .
in 2012 , the company also implemented a de-risking strategy for the medical bargaining trust within the plan to minimize volatility .
in 2017 , the company conducted a new asset-liability study that indicated medical trend inflation that outpaced the consumer price index by more than 2% ( 2 % ) for the last 20 years .
given continuously rising medical costs , the company decided to increase the equity exposure of the portfolio to 30% ( 30 % ) , up from 20% ( 20 % ) , while reducing the fixed-income portion of the portfolio from 80% ( 80 % ) to 70% ( 70 % ) .
the company also conducted an asset-liability study for the post-retirement non-bargaining medical plan .
its allocation was adjusted to make it more conservative , reducing the equity allocation from 70% ( 70 % ) to 60% ( 60 % ) and increasing the fixed- income allocation from 30% ( 30 % ) to 40% ( 40 % ) .
the post-retirement medical non-bargaining plan 2019s equity allocation was reduced due to the cap on benefits for some non-union participants and resultant reduction in the plan 2019s liabilities .
these changes will take place in 2018 .
the company engages third party investment managers for all invested assets .
managers are not permitted to invest outside of the asset class ( e.g .
fixed income , equity , alternatives ) or strategy for which they have been appointed .
investment management agreements and recurring performance and attribution analysis are used as tools to ensure investment managers invest solely within the investment strategy they have been provided .
futures and options may be used to adjust portfolio duration to align with a plan 2019s targeted investment policy.


mutual and pooled funds shares of mutual funds are valued at the net asset value ( nav ) quoted on the exchange where the fund is traded and are classified as level 1 assets .
units of pooled funds are valued at the per unit nav determined by the fund manager and are classified as level 2 assets .
the investments are utilizing nav as a practical expedient for fair value .
corporate and government bonds corporate and government bonds are classified as level 2 assets , as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings .
mortgage and asset-backed securities mortgage and asset 2013backed securities are classified as level 2 assets , as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields , credit ratings , and purpose of the underlying loan .
real estate pooled funds real estate pooled funds are classified as level 3 assets , as they are carried at the estimated fair value of the underlying properties .
estimated fair value is calculated utilizing a combination of key inputs , such as revenue and expense growth rates , terminal capitalization rates , and discount rates .
these key inputs are consistent with practices prevailing within the real estate investment management industry .
other pooled funds other pooled funds classified as level 2 assets are valued at the nav of the shares held at year end , which is based on the fair value of the underlying investments .
securities and interests classified as level 3 are carried at the estimated fair value of the underlying investments .
the underlying investments are valued based on bids from brokers or other third-party vendor sources that utilize expected cash flow streams and other uncorroborated data , including counterparty credit quality , default risk , discount rates , and the overall capital market liquidity .
insurance contracts insurance contracts are classified as level 3 assets , as they are carried at contract value , which approximates the estimated fair value .
the estimated fair value is based on the fair value of the underlying investment of the insurance company .
contributions and projected benefit payments pension contributions to funded plans and benefit payments for unfunded plans for fiscal year 2015 were $ 137.5 .
contributions resulted primarily from an assessment of long-term funding requirements of the plans and tax planning .
benefit payments to unfunded plans were due primarily to the timing of retirements and cost reduction actions .
we anticipate contributing $ 100 to $ 120 to the defined benefit pension plans in 2016 .
these contributions are driven primarily by benefit payments for unfunded plans , which are dependent upon timing of retirements and actions to reorganize the business .
projected benefit payments , which reflect expected future service , are as follows: .

              | u.s .   | international
------------- | ------- | -------------
2016          | $ 129.0 | $ 52.0
2017          | 135.8   | 53.5
2018          | 142.2   | 55.3
2019          | 149.6   | 57.5
2020          | 157.4   | 57.8
2021 20132025 | 917.9   | 332.3

these estimated benefit payments are based on assumptions about future events .
actual benefit payments may vary significantly from these estimates.


at december 31 , 2015 and 2014 , options for 5 million and 6 million shares of common stock were exercisable at a weighted-average price of $ 55.42 and $ 56.21 , respectively .
the total intrinsic value of options exercised was approximately $ .1 billion during 2016 , 2015 and 2014 .
cash received from option exercises under all incentive plans for 2016 , 2015 and 2014 was approximately $ .1 billion , $ .1 billion and $ .2 billion , respectively .
the tax benefit realized from option exercises under all incentive plans was insignificant for 2016 , 2015 and 2014 .
shares of common stock available during the next year for the granting of options and other awards under the incentive plans were approximately 39 million shares at december 31 , 2016 .
total shares of pnc common stock authorized for future issuance under all equity compensation plans totaled approximately 40 million shares at december 31 , 2016 .
during 2016 , we issued approximately 2 million common shares from treasury stock in connection with stock option exercise activity .
as with past exercise activity , we currently intend to utilize primarily treasury stock for any future stock option exercises .
incentive/performance unit awards and restricted share/restricted share unit awards the fair value of nonvested incentive/performance unit awards and restricted share/restricted share unit awards is initially determined based on prices not less than the market value of our common stock on the date of grant with a reduction for estimated forfeitures .
the value of certain incentive/ performance unit awards is subsequently remeasured based on the achievement of one or more financial and other performance goals .
additionally , certain incentive/ performance unit awards require subsequent adjustment to their current market value due to certain discretionary risk review triggers .
the weighted-average grant date fair value of incentive/ performance unit awards and restricted share/restricted share unit awards granted in 2016 , 2015 and 2014 was $ 78.37 , $ 91.57 and $ 80.79 per share , respectively .
the total intrinsic value of incentive/performance unit and restricted share/ restricted share unit awards vested during 2016 , 2015 and 2014 was approximately $ .1 billion , $ .2 billion and $ .1 billion , respectively .
we recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program .
table 78 : nonvested incentive/performance unit awards and restricted share/restricted share unit awards 2013 rollforward ( a ) shares in millions nonvested incentive/ performance units shares weighted- average date fair nonvested restricted share/ restricted weighted- average grant date fair value .

shares in millions december 31 2015 | nonvested incentive/ performance units shares 2 | weighted- average grant date fair value $ 79.27 | nonvested restricted share/ restricted share units 3 | weighted- average grant date fair value $ 79.26
----------------------------------- | ----------------------------------------------- | ----------------------------------------------- | ---------------------------------------------------- | -----------------------------------------------
granted ( b )                       | 1                                               | $ 77.77                                         | 1                                                    | $ 78.71
vested/released ( b )               | -1 ( 1 )                                        | $ 71.59                                         | -1 ( 1 )                                             | $ 65.53
december 31 2016                    | 2                                               | $ 81.42                                         | 3                                                    | $ 83.27

( a ) forfeited awards during 2016 were insignificant .
( b ) includes adjustments for achieving specific performance goals for incentive/ performance unit share awards granted in prior periods .
in table 78 , the units and related weighted-average grant date fair value of the incentive/performance unit share awards exclude the effect of dividends on the underlying shares , as those dividends will be paid in cash if and when the underlying shares are issued to the participants .
blackrock long-term incentive plans ( ltip ) blackrock adopted the 2002 ltip program to help attract and retain qualified professionals .
at that time , we agreed to transfer up to four million shares of blackrock common stock to fund a portion of the 2002 ltip program and future ltip programs approved by blackrock 2019s board of directors .
in 2009 , our obligation to deliver any remaining blackrock common shares was replaced with an obligation to deliver shares of blackrock 2019s series c preferred stock held by us .
in 2016 , we transferred .5 million shares of blackrock series c preferred stock to blackrock in connection with our obligation .
at december 31 , 2016 , we held approximately .8 million shares of blackrock series c preferred stock which were available to fund our obligations .
see note 23 subsequent events for information on our february 1 , 2017 transfer of .5 million shares of the series c preferred stock to blackrock to satisfy a portion of our ltip obligation .
we account for our blackrock series c preferred stock at fair value , which offsets the impact of marking-to-market the obligation to deliver these shares to blackrock .
see note 6 fair value for additional information regarding the valuation of the blackrock series c preferred stock .
the pnc financial services group , inc .
2013 form 10-k 139


value , which may be maturity , the company does not consider these investments to be other-than-temporarily impaired as of december 31 , 2005 and 2004 .
gross realized gains and losses for 2005 were $ 15000 and $ 75000 , respectively .
gross realized gains and losses for 2004 were $ 628000 and $ 205000 , respectively .
gross realized gains for 2003 were $ 1249000 .
there were no gross realized losses for 2003 .
maturities stated are effective maturities .
f .
restricted cash at december 31 , 2005 and 2004 , the company held $ 41482000 and $ 49847000 , respectively , in restricted cash .
at december 31 , 2005 and 2004 the balance was held in deposit with certain banks predominantly to collateralize conditional stand-by letters of credit in the names of the company's landlords pursuant to certain operating lease agreements .
g .
property and equipment property and equipment consist of the following at december 31 ( in thousands ) : depreciation expense for the years ended december 31 , 2005 , 2004 and 2003 was $ 26307000 , $ 28353000 and $ 27988000 respectively .
in 2005 and 2004 , the company wrote off certain assets that were fully depreciated and no longer utilized .
there was no effect on the company's net property and equipment .
additionally , the company wrote off or sold certain assets that were not fully depreciated .
the net loss on disposal of those assets was $ 344000 for 2005 and $ 43000 for 2004 .
h .
investments in accordance with the company's policy , as outlined in note b , "accounting policies" the company assessed its investment in altus pharmaceuticals , inc .
( "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 which would indicate a decrease in its fair value below the carrying value that would require the company to write down the investment basis of the asset , as of december 31 , 2005 and december 31 , 2004 .
the company's cost basis carrying value in its outstanding equity and warrants of altus was $ 18863000 at december 31 , 2005 and 2004. .

                                               | 2005    | 2004
---------------------------------------------- | ------- | -------
furniture and equipment                        | $ 98387 | $ 90893
leasehold improvements                         | 66318   | 65294
computers                                      | 18971   | 18421
software                                       | 18683   | 16411
total property and equipment gross             | 202359  | 191019
less accumulated depreciation and amortization | 147826  | 126794
total property and equipment net               | $ 54533 | $ 64225


the agencies consider many factors in determining the final rating of an insurance company .
one consideration is the relative level of statutory surplus necessary to support the business written .
statutory surplus represents the capital of the insurance company reported in accordance with accounting practices prescribed by the applicable state insurance department .
see part i , item 1a .
risk factors 2014 201cdowngrades in our financial strength or credit ratings , which may make our products less attractive , could increase our cost of capital and inhibit our ability to refinance our debt , which would have a material adverse effect on our business , financial condition , results of operations and liquidity . 201d statutory surplus the table below sets forth statutory surplus for the company 2019s insurance companies as of december 31 , 2014 and 2013: .

                                                                                | 2014    | 2013
------------------------------------------------------------------------------------------ | ------- | -------
u.s . life insurance subsidiaries includes domestic captive insurance subsidiaries in 2013 | $ 7157  | $ 6639
property and casualty insurance subsidiaries                                               | 8069    | 8022
total                                                                                | $ 15226 | $ 14661

statutory capital and surplus for the u.s .
life insurance subsidiaries , including domestic captive insurance subsidiaries in 2013 , increased by $ 518 , primarily due to variable annuity surplus impacts of $ 788 , net income from non-variable annuity business of $ 187 , increases in unrealized gains from other invested assets carrying values of $ 138 , partially offset by returns of capital of $ 500 , and changes in reserves on account of change in valuation basis of $ 100 .
effective april 30 , 2014 the last domestic captive ceased operations .
statutory capital and surplus for the property and casualty insurance increased by $ 47 , primarily due to statutory net income of $ 1.1 billion , and unrealized gains on investments of $ 1.4 billion , largely offset by dividends to the hfsg holding company of $ 2.5 billion .
the company also held regulatory capital and surplus for its former operations in japan until the sale of those operations on june 30 , 2014 .
under the accounting practices and procedures governed by japanese regulatory authorities , the company 2019s statutory capital and surplus was $ 1.2 billion as of december 31 , 2013.


part ii item 5 .
market for registrant 2019s common equity and related stockholder matters market information our common stock has been traded on the new york stock exchange ( 2018 2018nyse 2019 2019 ) under the symbol 2018 2018exr 2019 2019 since our ipo on august 17 , 2004 .
prior to that time there was no public market for our common stock .
the following table sets forth , for the periods indicated , the high and low bid price for our common stock as reported by the nyse and the per share dividends declared : dividends high low declared .

                                                | high    | low     | dividends declared
----------------------------------------------- | ------- | ------- | ------------------
period from august 17 2004 to september 30 2004 | $ 14.38 | $ 12.50 | $ 0.1113
quarter ended december 31 2004                  | 14.55   | 12.60   | 0.2275
quarter ended march 31 2005                     | 14.30   | 12.55   | 0.2275
quarter ended june 30 2005                      | 14.75   | 12.19   | 0.2275
quarter ended september 30 2005                 | 16.71   | 14.32   | 0.2275
quarter ended december 31 2005                  | 15.90   | 13.00   | 0.2275

on february 28 , 2006 , the closing price of our common stock as reported by the nyse was $ 15.00 .
at february 28 , 2006 , we had 166 holders of record of our common stock .
holders of shares of common stock are entitled to receive distributions when declared by our board of directors out of any assets legally available for that purpose .
as a reit , we are required to distribute at least 90% ( 90 % ) of our 2018 2018reit taxable income 2019 2019 is generally equivalent to our net taxable ordinary income , determined without regard to the deduction for dividends paid , to our stockholders annually in order to maintain our reit qualifications for u.s .
federal income tax purposes .
unregistered sales of equity securities and use of proceeds on june 20 , 2005 , we completed the sale of 6200000 shares of our common stock , $ .01 par value , for $ 83514 , which we reported in a current report on form 8-k filed with the securities and exchange commission on june 24 , 2005 .
we used the proceeds for general corporate purposes , including debt repayment .
the shares were issued pursuant to an exemption from registration under the securities act of 1933 , as amended.


table of contents performance graph the following graph compares the total return , assuming reinvestment of dividends , on an investment in the company , based on performance of the company's common stock , with the total return of the standard & poor's 500 composite stock index ( "s&p 500" ) and the dow jones united states travel and leisure index for a five year period by measuring the changes in common stock prices from december 31 , 2013 to december 31 , 2018. .

                                 | 12/13  | 12/14  | 12/15  | 12/16  | 12/17  | 12/18
-------------------------------- | ------ | ------ | ------ | ------ | ------ | ------
royal caribbean cruises ltd .    | 100.00 | 176.94 | 220.72 | 182.99 | 271.25 | 227.46
s&p 500                          | 100.00 | 113.69 | 115.26 | 129.05 | 157.22 | 150.33
dow jones u.s . travel & leisure | 100.00 | 116.37 | 123.23 | 132.56 | 164.13 | 154.95

the stock performance graph assumes for comparison that the value of the company's common stock and of each index was $ 100 on december 31 , 2013 and that all dividends were reinvested .
past performance is not necessarily an indicator of future results.


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

                                  | preliminary purchase price allocation
--------------------------------- | -------------------------------------
non-current assets                | $ 24460
property and equipment            | 138959
intangible assets ( 1 )           | 117990
other non-current liabilities     | -18195 ( 18195 )
fair value of net assets acquired | $ 263214
goodwill ( 2 )                    | 47481

( 1 ) consists of customer-related intangibles of approximately $ 80.0 million and network location intangibles of approximately $ 38.0 million .
the customer-related intangibles and network location intangibles are being amortized on a straight-line basis over periods of up to 20 years .
( 2 ) the company expects that the goodwill recorded will be deductible for tax purposes .
the goodwill was allocated to the company 2019s international rental and management segment .
ghana acquisition 2014on december 6 , 2010 , the company entered into a definitive agreement with mtn group limited ( 201cmtn group 201d ) to establish a joint venture in ghana .
the joint venture is controlled by a holding company of which a wholly owned subsidiary of the company ( the 201catc ghana subsidiary 201d ) holds a 51% ( 51 % ) interest and mobile telephone networks ( netherlands ) b.v. , a wholly owned subsidiary of mtn group ( the 201cmtn ghana subsidiary 201d ) holds a 49% ( 49 % ) interest .
the joint venture is managed and controlled by the company and owns a tower operations company in ghana .
pursuant to the agreement , on may 6 , 2011 , august 11 , 2011 and december 23 , 2011 , the joint venture acquired 400 , 770 and 686 communications sites , respectively , from mtn group 2019s operating subsidiary in ghana for an aggregate purchase price of $ 515.6 million ( including contingent consideration of $ 2.3 million and value added tax of $ 65.6 million ) .
the aggregate purchase price was subsequently increased to $ 517.7 million ( including contingent consideration of $ 2.3 million and value added tax of $ 65.6 million ) after certain post-closing adjustments .
under the terms of the purchase agreement , legal title to certain of the communications sites acquired on december 23 , 2011 will be transferred upon fulfillment of certain conditions by mtn group .
prior to the fulfillment of these conditions , the company will operate and maintain control of these communications sites , and accordingly , reflect these sites in the allocation of purchase price and the consolidated operating results .
in december 2011 , the company signed an amendment to its agreement with mtn group , which requires the company to make additional payments upon the conversion of certain barter agreements with other wireless carriers to cash-paying master lease agreements .
the company currently estimates the fair value of remaining potential contingent consideration payments required to be made under the amended agreement to be between zero and $ 1.0 million and is estimated to be $ 0.9 million using a probability weighted average of the expected outcomes at december 31 , 2012 .
the company has previously made payments under this arrangement of $ 2.6 million .
during the year ended december 31 , 2012 , the company recorded an increase in fair value of $ 0.4 million as other operating expenses in the consolidated statements of operations.


the remaining change in other expense was driven primarily by changes on foreign currency exchange instruments as further discussed in note 7 in 201citem 8 .
financial statements and supplementary data 201d of this report .
income taxes .

                             | 2018         | 2017
---------------------------- | ------------ | ----------
current expense ( benefit )  | $ -70 ( 70 ) | $ 112
deferred expense ( benefit ) | 226          | -97 ( 97 )
total expense                | $ 156        | $ 15
effective income tax rate    | 17% ( 17 % ) | 2% ( 2 % )

for discussion on income taxes , see note 8 in 201citem 8 .
financial statements and supplementary data 201d of this report .
discontinued operations discontinued operations net earnings increased primarily due to the gain on the sale of our aggregate ownership interests in enlink and the general partner of $ 2.6 billion ( $ 2.2 billion after-tax ) .
for discussion on discontinued operations , see note 19 in 201citem 8 .
financial statements and supplementary data 201d of this report 201d of this report .
results of operations 2013 2017 vs .
2016 the graph below shows the change in net earnings from 2016 to 2017 .
the material changes are further discussed by category on the following pages .
to facilitate the review , these numbers are being presented before consideration of earnings attributable to noncontrolling interests .
$ 1308 ( $ 165 ) ( $ 4 ) $ 1 $ 63 $ 400 ( $ 397 ) $ 126 $ 1204 ( $ 1458 ) $ 1078 2016 upstream operations marketing operations exploration expenses dd&a g&a financing costs , net other ( 1 ) income discontinued operations net earnings ( 1 ) other in the table above includes asset impairments , asset dispositions , restructuring and transaction costs and other expenses .
the graph below presents the drivers of the upstream operations change presented above , with additional details and discussion of the drivers following the graph .
( $ 427 ) ( $ 427 ) $ 1395$ 1 395 $ 2176$ 2 176 $ 3484 2016 production volumes field prices hedging 2017 upstream operations expenses


stock total return performance the following graph compares our total return to stockholders with the returns of the standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) and the dow jones us select health care providers index ( 201cpeer group 201d ) for the five years ended december 31 , 2014 .
the graph assumes an investment of $ 100 in each of our common stock , the s&p 500 , and the peer group on december 31 , 2009 , and that dividends were reinvested when paid. .

           | 12/31/2009 | 12/31/2010 | 12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum        | $ 100      | $ 125      | $ 201      | $ 160      | $ 244      | $ 342
s&p 500    | $ 100      | $ 115      | $ 117      | $ 136      | $ 180      | $ 205
peer group | $ 100      | $ 112      | $ 123      | $ 144      | $ 198      | $ 252

the stock price performance included in this graph is not necessarily indicative of future stock price performance .
table of contents


the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2010 , 2009 , and 2008 ( 3 ) multilateral loans include loans funded and guaranteed by bilaterals , multilaterals , development banks and other similar institutions .
( 4 ) non-recourse debt of $ 708 million as of december 31 , 2009 was excluded from non-recourse debt and included in current and long-term liabilities of held for sale and discontinued businesses in the accompanying consolidated balance sheets .
non-recourse debt as of december 31 , 2010 is scheduled to reach maturity as set forth in the table below : december 31 , annual maturities ( in millions ) .

december 31,            | annual maturities ( in millions )
----------------------- | ---------------------------------
2011                    | $ 2577
2012                    | 657
2013                    | 953
2014                    | 1839
2015                    | 1138
thereafter              | 7957
total non-recourse debt | $ 15121

as of december 31 , 2010 , aes subsidiaries with facilities under construction had a total of approximately $ 432 million of committed but unused credit facilities available to fund construction and other related costs .
excluding these facilities under construction , aes subsidiaries had approximately $ 893 million in a number of available but unused committed revolving credit lines to support their working capital , debt service reserves and other business needs .
these credit lines can be used in one or more of the following ways : solely for borrowings ; solely for letters of credit ; or a combination of these uses .
the weighted average interest rate on borrowings from these facilities was 3.24% ( 3.24 % ) at december 31 , 2010 .
non-recourse debt covenants , restrictions and defaults the terms of the company 2019s non-recourse debt include certain financial and non-financial covenants .
these covenants are limited to subsidiary activity and vary among the subsidiaries .
these covenants may include but are not limited to maintenance of certain reserves , minimum levels of working capital and limitations on incurring additional indebtedness .
compliance with certain covenants may not be objectively determinable .
as of december 31 , 2010 and 2009 , approximately $ 803 million and $ 653 million , respectively , of restricted cash was maintained in accordance with certain covenants of the non-recourse debt agreements , and these amounts were included within 201crestricted cash 201d and 201cdebt service reserves and other deposits 201d in the accompanying consolidated balance sheets .
various lender and governmental provisions restrict the ability of certain of the company 2019s subsidiaries to transfer their net assets to the parent company .
such restricted net assets of subsidiaries amounted to approximately $ 5.4 billion at december 31 , 2010.


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) maturities 2014as of december 31 , 2007 , aggregate carrying value of long-term debt , including capital leases , for the next five years and thereafter are estimated to be ( in thousands ) : year ending december 31 .

2008                                                                                | $ 1817
------------------------------------------------------------------------------------------------- | ---------
2009                                                                                | 1241
2010                                                                                | 78828
2011                                                                                | 13714
2012                                                                                | 1894998
thereafter                                                                                | 2292895
total cash obligations                                                                            | $ 4283493
accreted value of the discount and premium of 3.00% ( 3.00 % ) notes and 7.125% ( 7.125 % ) notes | 1791
balance as of december 31 2007                                                                    | $ 4285284

4 .
acquisitions during the years ended december 31 , 2007 , 2006 and 2005 , the company used cash to acquire a total of ( i ) 293 towers and the assets of a structural analysis firm for approximately $ 44.0 million in cash ( ii ) 84 towers and 6 in-building distributed antenna systems for approximately $ 14.3 million and ( iii ) 30 towers for approximately $ 6.0 million in cash , respectively .
the tower asset acquisitions were primarily in mexico and brazil under ongoing agreements .
during the year ended december 31 , 2005 , the company also completed its merger with spectrasite , inc .
pursuant to which the company acquired approximately 7800 towers and 100 in-building distributed antenna systems .
under the terms of the merger agreement , in august 2005 , spectrasite , inc .
merged with a wholly- owned subsidiary of the company , and each share of spectrasite , inc .
common stock converted into the right to receive 3.575 shares of the company 2019s class a common stock .
the company issued approximately 169.5 million shares of its class a common stock and reserved for issuance approximately 9.9 million and 6.8 million of class a common stock pursuant to spectrasite , inc .
options and warrants , respectively , assumed in the merger .
the final allocation of the $ 3.1 billion purchase price is summarized in the company 2019s annual report on form 10-k for the year ended december 31 , 2006 .
the acquisitions consummated by the company during 2007 , 2006 and 2005 , have been accounted for under the purchase method of accounting in accordance with sfas no .
141 201cbusiness combinations 201d ( sfas no .
141 ) .
the purchase prices have been allocated to the net assets acquired and the liabilities assumed based on their estimated fair values at the date of acquisition .
the company primarily acquired its tower assets from third parties in one of two types of transactions : the purchase of a business or the purchase of assets .
the structure of each transaction affects the way the company allocates purchase price within the consolidated financial statements .
in the case of tower assets acquired through the purchase of a business , such as the company 2019s merger with spectrasite , inc. , the company allocates the purchase price to the assets acquired and liabilities assumed at their estimated fair values as of the date of acquisition .
the excess of the purchase price paid by the company over the estimated fair value of net assets acquired has been recorded as goodwill .
in the case of an asset purchase , the company first allocates the purchase price to property and equipment for the appraised value of the towers and to identifiable intangible assets ( primarily acquired customer base ) .
the company then records any remaining purchase price within intangible assets as a 201cnetwork location intangible . 201d


5 .
other current assets other current assets consisted of the following at december 31: .

( in millions )                                      | 2010    | 2009
---------------------------------------------------- | ------- | -------
refundable income tax                                | $ 61.0  | $ 24.1
net deferred income taxes ( note 14 )                | 18.3    | 23.8
prepaid technology license and maintenance contracts | 18.0    | 17.0
forward contract receivable ( note 20 )              | 11.8    | 27.3
receivables from brokers                             | 11.2    | 8.8
other prepaid expenses                               | 9.6     | 13.5
prepaid insurance                                    | 6.3     | 7.0
cboe exercise rights privilege                       | 2014    | 39.8
other                                                | 9.9     | 4.3
total                                                | $ 146.1 | $ 165.6

6 .
performance bonds and guaranty fund contributions cme clears and guarantees the settlement of cme , cbot and nymex contracts traded in their respective markets .
in its guarantor role , cme has precisely equal and offsetting claims to and from clearing firms on opposite sides of each contract , standing as an intermediary on every contract cleared .
clearing firm positions are combined to create a single portfolio for each clearing firm 2019s regulated and non-regulated accounts with cme for which performance bond and guaranty fund requirements are calculated .
to the extent that funds are not otherwise available to satisfy an obligation under the applicable contract , cme bears counterparty credit risk in the event that future market movements create conditions that could lead to clearing firms failing to meet their obligations to cme .
cme reduces its exposure through a risk management program that includes initial and ongoing financial standards for designation as a clearing firm , performance bond requirements and mandatory guaranty fund contributions .
each clearing firm is required to deposit and maintain balances in the form of cash , u.s .
government securities , bank letters of credit or other approved investments to satisfy performance bond and guaranty fund requirements .
all obligations and non-cash deposits are marked to market on a daily basis .
in addition , the rules and regulations of cbot require certain minimum financial requirements for delivery of physical commodities , maintenance of capital requirements and deposits on pending arbitration matters .
to satisfy these requirements , cbot clearing firms have deposited cash , u.s .
treasury securities and letters of credit .
cme marks-to-market open positions at least twice a day , and requires payment from clearing firms whose positions have lost value and makes payments to clearing firms whose positions have gained value .
for select product offerings within newer markets , positions are marked-to-market once daily , with the capability to mark-to-market more frequently as market conditions warrant .
under the extremely unlikely scenario of simultaneous default by every clearing firm who has open positions with unrealized losses , the maximum exposure related to cme 2019s guarantee would be one half day of changes in fair value of all open positions , before considering cme 2019s ability to access defaulting clearing firms 2019 performance bond and guaranty fund balances as well as other available resources .
during 2010 , cme transferred an average of approximately $ 2.4 billion a day through its clearing system for settlement from clearing firms whose positions had lost value to clearing firms whose positions had gained value .
cme reduces its guarantee exposure through initial and maintenance performance bond requirements and mandatory guaranty fund contributions .
the company believes that the guarantee liability is immaterial and therefore has not recorded any liability at december 31 , 2010.


notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts ) sales of businesses and investments 2013 primarily includes realized gains and losses relating to the sales of businesses , cumulative translation adjustment balances from the liquidation of entities and sales of marketable securities and investments in publicly traded and privately held companies in our rabbi trusts .
during 2009 , we realized a gain of $ 15.2 related to the sale of an investment in our rabbi trusts , which was partially offset by losses realized from the sale of various businesses .
losses in 2007 primarily related to the sale of several businesses within draftfcb for a loss of $ 9.3 and charges at lowe of $ 7.8 as a result of the realization of cumulative translation adjustment balances from the liquidation of several businesses .
vendor discounts and credit adjustments 2013 we are in the process of settling our liabilities related to vendor discounts and credits established during the restatement we presented in our 2004 annual report on form 10-k .
these adjustments reflect the reversal of certain of these liabilities as a result of settlements with clients or vendors or where the statute of limitations has lapsed .
litigation settlement 2013 during may 2008 , the sec concluded its investigation that began in 2002 into our financial reporting practices , resulting in a settlement charge of $ 12.0 .
investment impairments 2013 in 2007 we realized an other-than-temporary charge of $ 5.8 relating to a $ 12.5 investment in auction rate securities , representing our total investment in auction rate securities .
see note 12 for further information .
note 5 : intangible assets goodwill goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values .
the changes in the carrying value of goodwill for our segments , integrated agency networks ( 201cian 201d ) and constituency management group ( 201ccmg 201d ) , for the years ended december 31 , 2009 and 2008 are listed below. .

                                                        | ian              | cmg            | total 1
------------------------------------------------------- | ---------------- | -------------- | ----------------
balance as of december 31 2007                          | $ 2789.7         | $ 441.9        | $ 3231.6
current year acquisitions                               | 99.5             | 1.8            | 101.3
contingent and deferred payments for prior acquisitions | 28.9             | 1.1            | 30.0
other ( primarily foreign currency translation )        | -128.1 ( 128.1 ) | -13.9 ( 13.9 ) | -142.0 ( 142.0 )
balance as of december 31 2008                          | $ 2790.0         | $ 430.9        | $ 3220.9
current year acquisitions2                              | 5.2              | 2014           | 5.2
contingent and deferred payments for prior acquisitions | 14.2             | 2014           | 14.2
other ( primarily foreign currency translation )        | 76.2             | 4.5            | 80.7
balance as of december 31 2009                          | $ 2885.6         | $ 435.4        | $ 3321.0

1 for all periods presented we have not recorded a goodwill impairment charge .
2 for acquisitions completed after january 1 , 2009 , amount includes contingent and deferred payments , which are recorded at fair value on the acquisition date .
see note 6 for further information .
see note 1 for further information regarding our annual impairment methodology .
other intangible assets included in other intangible assets are assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization .
other intangible assets primarily include customer lists and trade names .
intangible assets with definitive lives subject to amortization are amortized on a straight-line basis with estimated useful lives generally between 7 and 15 years .
amortization expense for other intangible assets for the years ended december 31 , 2009 , 2008 and 2007 was $ 19.3 , $ 14.4 and $ 8.5 , respectively .
the following table provides a summary of other intangible assets , which are included in other assets on our consolidated balance sheets.