management 2019s discussion and analysis of financial condition and results of operations ( continued ) detail with respect to our investment portfolio as of december 31 , 2014 and 2013 is provided in note 3 to the consolidated financial statements included under item 8 of this form 10-k .
loans and leases averaged $ 15.91 billion for the year ended 2014 , up from $ 13.78 billion in 2013 .
the increase was mainly related to mutual fund lending and our continued investment in senior secured bank loans .
mutual fund lending and senior secured bank loans averaged approximately $ 9.12 billion and $ 1.40 billion , respectively , for the year ended december 31 , 2014 compared to $ 8.16 billion and $ 170 million for the year ended december 31 , 2013 , respectively .
average loans and leases also include short- duration advances .
table 13 : u.s .
and non-u.s .
short-duration advances years ended december 31 .

( in millions )                                            | 2014         | 2013         | 2012
---------------------------------------------------------- | ------------ | ------------ | ------------
average u.s . short-duration advances                      | $ 2355       | $ 2356       | $ 1972
average non-u.s . short-duration advances                  | 1512         | 1393         | 1393
average total short-duration advances                      | $ 3867       | $ 3749       | $ 3365
average short-durance advances to average loans and leases | 24% ( 24 % ) | 27% ( 27 % ) | 29% ( 29 % )

average u.s .
short-duration advances $ 2355 $ 2356 $ 1972 average non-u.s .
short-duration advances 1512 1393 1393 average total short-duration advances $ 3867 $ 3749 $ 3365 average short-durance advances to average loans and leases 24% ( 24 % ) 27% ( 27 % ) 29% ( 29 % ) the decline in proportion of the average daily short-duration advances to average loans and leases is primarily due to growth in the other segments of the loan and lease portfolio .
short-duration advances provide liquidity to clients in support of their investment activities .
although average short-duration advances for the year ended december 31 , 2014 increased compared to the year ended december 31 , 2013 , such average advances remained low relative to historical levels , mainly the result of clients continuing to hold higher levels of liquidity .
average other interest-earning assets increased to $ 15.94 billion for the year ended december 31 , 2014 from $ 11.16 billion for the year ended december 31 , 2013 .
the increased levels were primarily the result of higher levels of cash collateral provided in connection with our enhanced custody business .
aggregate average interest-bearing deposits increased to $ 130.30 billion for the year ended december 31 , 2014 from $ 109.25 billion for year ended 2013 .
the higher levels were primarily the result of increases in both u.s .
and non-u.s .
transaction accounts and time deposits .
future transaction account levels will be influenced by the underlying asset servicing business , as well as market conditions , including the general levels of u.s .
and non-u.s .
interest rates .
average other short-term borrowings increased to $ 4.18 billion for the year ended december 31 , 2014 from $ 3.79 billion for the year ended 2013 .
the increase was the result of a higher level of client demand for our commercial paper .
the decline in rates paid from 1.6% ( 1.6 % ) in 2013 to 0.1% ( 0.1 % ) in 2014 resulted from a reclassification of certain derivative contracts that hedge our interest-rate risk on certain assets and liabilities , which reduced interest revenue and interest expense .
average long-term debt increased to $ 9.31 billion for the year ended december 31 , 2014 from $ 8.42 billion for the year ended december 31 , 2013 .
the increase primarily reflected the issuance of $ 1.5 billion of senior and subordinated debt in may 2013 , $ 1.0 billion of senior debt issued in november 2013 , and $ 1.0 billion of senior debt issued in december 2014 .
this is partially offset by the maturities of $ 500 million of senior debt in may 2014 and $ 250 million of senior debt in march 2014 .
average other interest-bearing liabilities increased to $ 7.35 billion for the year ended december 31 , 2014 from $ 6.46 billion for the year ended december 31 , 2013 , primarily the result of higher levels of cash collateral received from clients in connection with our enhanced custody business .
several factors could affect future levels of our net interest revenue and margin , including the mix of client liabilities ; actions of various central banks ; changes in u.s .
and non-u.s .
interest rates ; changes in the various yield curves around the world ; revised or proposed regulatory capital or liquidity standards , or interpretations of those standards ; the amount of discount accretion generated by the former conduit securities that remain in our investment securities portfolio ; and the yields earned on securities purchased compared to the yields earned on securities sold or matured .
based on market conditions and other factors , we continue to reinvest the majority of the proceeds from pay-downs and maturities of investment securities in highly-rated securities , such as u.s .
treasury and agency securities , municipal securities , federal agency mortgage-backed securities and u.s .
and non-u.s .
mortgage- and asset-backed securities .
the pace at which we continue to reinvest and the types of investment securities purchased will depend on the impact of market conditions and other factors over time .
we expect these factors and the levels of global interest rates to influence what effect our reinvestment program will have on future levels of our net interest revenue and net interest margin.


note 9 .
retirement plan we maintain a defined contribution pension plan covering full-time shoreside employees who have completed the minimum period of continuous service .
annual contributions to the plan are based on fixed percentages of participants 2019 salaries and years of service , not to exceed certain maximums .
pension cost was $ 13.9 million , $ 12.8 million and $ 12.2 million for the years ended december 31 , 2006 , 2005 and 2004 , respectively .
note 10 .
income taxes we and the majority of our subsidiaries are currently exempt from united states corporate tax on income from the international opera- tion of ships pursuant to section 883 of the internal revenue code .
income tax expense related to our remaining subsidiaries was not significant for the years ended december 31 , 2006 , 2005 and 2004 .
final regulations under section 883 were published on august 26 , 2003 , and were effective for the year ended december 31 , 2005 .
these regulations confirmed that we qualify for the exemption provid- ed by section 883 , but also narrowed the scope of activities which are considered by the internal revenue service to be incidental to the international operation of ships .
the activities listed in the regula- tions as not being incidental to the international operation of ships include income from the sale of air and other transportation such as transfers , shore excursions and pre and post cruise tours .
to the extent the income from such activities is earned from sources within the united states , such income will be subject to united states taxa- tion .
the application of these new regulations reduced our net income for the years ended december 31 , 2006 and december 31 , 2005 by approximately $ 6.3 million and $ 14.0 million , respectively .
note 11 .
financial instruments the estimated fair values of our financial instruments are as follows ( in thousands ) : .

                                                                   | 2006                 | 2005
------------------------------------------------------------------ | -------------------- | --------------------
cash and cash equivalents                                          | $ 104520             | $ 125385
long-term debt ( including current portion of long-term debt )     | -5474988 ( 5474988 ) | -4368874 ( 4368874 )
foreign currency forward contracts in a net ( loss ) gain position | 104159               | -115415 ( 115415 )
interest rate swap agreements in a net receivable position         | 5856                 | 8456
fuel swap agreements in a net payable position                     | -20456 ( 20456 )     | -78 ( 78 )

long-term debt ( including current portion of long-term debt ) ( 5474988 ) ( 4368874 ) foreign currency forward contracts in a net ( loss ) gain position 104159 ( 115415 ) interest rate swap agreements in a net receivable position 5856 8456 fuel swap agreements in a net payable position ( 20456 ) ( 78 ) the reported fair values are based on a variety of factors and assumptions .
accordingly , the fair values may not represent actual values of the financial instruments that could have been realized as of december 31 , 2006 or 2005 , or that will be realized in the future and do not include expenses that could be incurred in an actual sale or settlement .
our financial instruments are not held for trading or speculative purposes .
our exposure under foreign currency contracts , interest rate and fuel swap agreements is limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts , all of which are currently our lending banks .
to minimize this risk , we select counterparties with credit risks acceptable to us and we limit our exposure to an individual counterparty .
furthermore , all foreign currency forward contracts are denominated in primary currencies .
cash and cash equivalents the carrying amounts of cash and cash equivalents approximate their fair values due to the short maturity of these instruments .
long-term debt the fair values of our senior notes and senior debentures were esti- mated by obtaining quoted market prices .
the fair values of all other debt were estimated using discounted cash flow analyses based on market rates available to us for similar debt with the same remaining maturities .
foreign currency contracts the fair values of our foreign currency forward contracts were esti- mated using current market prices for similar instruments .
our expo- sure to market risk for fluctuations in foreign currency exchange rates relates to six ship construction contracts and forecasted transactions .
we use foreign currency forward contracts to mitigate the impact of fluctuations in foreign currency exchange rates .
as of december 31 , 2006 , we had foreign currency forward contracts in a notional amount of $ 3.8 billion maturing through 2009 .
as of december 31 , 2006 , the fair value of our foreign currency forward contracts related to the six ship construction contracts , which are designated as fair value hedges , was a net unrealized gain of approximately $ 106.3 mil- lion .
at december 31 , 2005 , the fair value of our foreign currency for- ward contracts related to three ship construction contracts , designated as fair value hedges , was a net unrealized loss of approx- imately $ 103.4 million .
the fair value of our foreign currency forward contracts related to the other ship construction contract at december 31 , 2005 , which was designated as a cash flow hedge , was an unre- alized loss , of approximately $ 7.8 million .
at december 31 , 2006 , approximately 11% ( 11 % ) of the aggregate cost of the ships was exposed to fluctuations in the euro exchange rate .
r o y a l c a r i b b e a n c r u i s e s l t d .
3 5 notes to the consolidated financial statements ( continued ) 51392_financials-v9.qxp 6/7/07 3:40 pm page 35


leveraged performance units during the year ended may 31 , 2015 , certain executives were granted performance units that we refer to as 201cleveraged performance units , 201d or 201clpus . 201d lpus contain a market condition based on our relative stock price growth over a three-year performance period .
the lpus contain a minimum threshold performance which , if not met , would result in no payout .
the lpus also contain a maximum award opportunity set as a fixed dollar and fixed number of shares .
after the three-year performance period , which concluded in october 2017 , one-third of the earned units converted to unrestricted common stock .
the remaining two-thirds converted to restricted stock that will vest in equal installments on each of the first two anniversaries of the conversion date .
we recognize share-based compensation expense based on the grant date fair value of the lpus , as determined by use of a monte carlo model , on a straight-line basis over the requisite service period for each separately vesting portion of the lpu award .
the following table summarizes the changes in unvested restricted stock and performance awards for the year ended december 31 , 2017 , the 2016 fiscal transition period and for the years ended may 31 , 2016 and 2015 : shares weighted-average grant-date fair value ( in thousands ) .

                             | shares ( in thousands ) | weighted-averagegrant-datefair value
---------------------------- | ----------------------- | ------------------------------------
unvested at may 31 2014      | 1754                    | $ 22.72
granted                      | 954                     | 36.21
vested                       | -648 ( 648 )            | 23.17
forfeited                    | -212 ( 212 )            | 27.03
unvested at may 31 2015      | 1848                    | 28.97
granted                      | 461                     | 57.04
vested                       | -633 ( 633 )            | 27.55
forfeited                    | -70 ( 70 )              | 34.69
unvested at may 31 2016      | 1606                    | 37.25
granted                      | 348                     | 74.26
vested                       | -639 ( 639 )            | 31.38
forfeited                    | -52 ( 52 )              | 45.27
unvested at december 31 2016 | 1263                    | 49.55
granted                      | 899                     | 79.79
vested                       | -858 ( 858 )            | 39.26
forfeited                    | -78 ( 78 )              | 59.56
unvested at december 31 2017 | 1226                    | $ 78.29

the total fair value of restricted stock and performance awards vested was $ 33.7 million for the year ended december 31 , 2017 , $ 20.0 million for the 2016 fiscal transition period and $ 17.4 million and $ 15.0 million , respectively , for the years ended may 31 , 2016 and 2015 .
for restricted stock and performance awards , we recognized compensation expense of $ 35.2 million for the year ended december 31 , 2017 , $ 17.2 million for the 2016 fiscal transition period and $ 28.8 million and $ 19.8 million , respectively , for the years ended may 31 , 2016 and 2015 .
as of december 31 , 2017 , there was $ 46.1 million of unrecognized compensation expense related to unvested restricted stock and performance awards that we expect to recognize over a weighted-average period of 1.8 years .
our restricted stock and performance award plans provide for accelerated vesting under certain conditions .
stock options stock options are granted with an exercise price equal to 100% ( 100 % ) of fair market value of our common stock on the date of grant and have a term of ten years .
stock options granted before the year ended may 31 , 2015 vest in equal installments on each of the first four anniversaries of the grant date .
stock options granted during the year ended may 31 , 2015 and thereafter vest in equal installments on each of the first three anniversaries of the grant date .
our stock option plans provide for accelerated vesting under certain conditions .
global payments inc .
| 2017 form 10-k annual report 2013 91


entergy louisiana , llc management's financial discussion and analysis 2007 compared to 2006 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2007 to 2006 .
amount ( in millions ) .

                         | amount ( in millions )
------------------------ | ----------------------
2006 net revenue         | $ 942.1
base revenues            | 78.4
volume/weather           | 37.5
transmission revenue     | 9.2
purchased power capacity | -80.0 ( 80.0 )
other                    | 3.9
2007 net revenue         | $ 991.1

the base revenues variance is primarily due to increases effective september 2006 for the 2005 formula rate plan filing to recover lpsc-approved incremental deferred and ongoing capacity costs .
see "state and local rate regulation" below and note 2 to the financial statements for a discussion of the formula rate plan filing .
the volume/weather variance is due to increased electricity usage , including electricity sales during the unbilled service period .
billed retail electricity usage increased a total of 666 gwh in all sectors compared to 2006 .
see "critical accounting estimates" below and note 1 to the financial statements for further discussion of the accounting for unbilled revenues .
the transmission revenue variance is primarily due to higher rates .
the purchased power capacity variance is primarily due to higher purchased power capacity charges and the amortization of capacity charges effective september 2006 as a result of the formula rate plan filing in may 2006 .
a portion of the purchased power capacity costs is offset in base revenues due to a base rate increase implemented to recover incremental deferred and ongoing purchased power capacity charges , as mentioned above .
see "state and local rate regulation" below and note 2 to the financial statements for a discussion of the formula rate plan filing .
gross operating revenues , fuel , purchased power expenses , and other regulatory charges ( credits ) gross operating revenues increased primarily due to : an increase of $ 143.1 million in fuel cost recovery revenues due to higher fuel rates and usage ; an increase of $ 78.4 million in base revenues , as discussed above ; and an increase of $ 37.5 million related to volume/weather , as discussed above .
fuel and purchased power expenses increased primarily due to an increase in net area demand and an increase in deferred fuel expense as a result of higher fuel rates , as discussed above .
other regulatory credits decreased primarily due to the deferral of capacity charges in 2006 in addition to the amortization of these capacity charges in 2007 as a result of the may 2006 formula rate plan filing ( for the 2005 test year ) with the lpsc to recover such costs through base rates effective september 2006 .
see note 2 to the financial statements for a discussion of the formula rate plan and storm cost recovery filings with the lpsc.


westrock company notes to consolidated financial statements 2014 ( continued ) note 20 .
stockholders 2019 equity capitalization our capital stock consists solely of common stock .
holders of our common stock are entitled to one vote per share .
our amended and restated certificate of incorporation also authorizes preferred stock , of which no shares have been issued .
the terms and provisions of such shares will be determined by our board of directors upon any issuance of such shares in accordance with our certificate of incorporation .
stock repurchase plan in july 2015 , our board of directors authorized a repurchase program of up to 40.0 million shares of our common stock , representing approximately 15% ( 15 % ) of our outstanding common stock as of july 1 , 2015 .
the shares of our common stock may be repurchased over an indefinite period of time at the discretion of management .
in fiscal 2019 , we repurchased approximately 2.1 million shares of our common stock for an aggregate cost of $ 88.6 million .
in fiscal 2018 , we repurchased approximately 3.4 million shares of our common stock for an aggregate cost of $ 195.1 million .
in fiscal 2017 , we repurchased approximately 1.8 million shares of our common stock for an aggregate cost of $ 93.0 million .
as of september 30 , 2019 , we had remaining authorization under the repurchase program authorized in july 2015 to purchase approximately 19.1 million shares of our common stock .
note 21 .
share-based compensation share-based compensation plans at our annual meeting of stockholders held on february 2 , 2016 , our stockholders approved the westrock company 2016 incentive stock plan .
the 2016 incentive stock plan was amended and restated on february 2 , 2018 ( the 201camended and restated 2016 incentive stock plan 201d ) .
the amended and restated 2016 incentive stock plan allows for the granting of options , restricted stock , sars and restricted stock units to certain key employees and directors .
the table below shows the approximate number of shares : available for issuance , available for future grant , to be issued if restricted awards granted with a performance condition recorded at target achieve the maximum award , and if new grants pursuant to the plan are expected to be issued , each as adjusted as necessary for corporate actions ( in millions ) .
shares available issuance shares available for future shares to be issued if performance is achieved at maximum expect to awards amended and restated 2016 incentive stock plan ( 1 ) 11.7 5.1 2.3 yes 2004 incentive stock plan ( 1 ) ( 2 ) 15.8 3.1 0.0 no 2005 performance incentive plan ( 1 ) ( 2 ) 12.8 9.0 0.0 no rocktenn ( sscc ) equity inventive plan ( 1 ) ( 3 ) 7.9 5.9 0.0 no ( 1 ) as part of the separation , equity-based incentive awards were generally adjusted to maintain the intrinsic value of awards immediately prior to the separation .
the number of unvested restricted stock awards and unexercised stock options and sars at the time of the separation were increased by an exchange factor of approximately 1.12 .
in addition , the exercise price of unexercised stock options and sars at the time of the separation was converted to decrease the exercise price by an exchange factor of approximately 1.12 .
( 2 ) in connection with the combination , westrock assumed all rocktenn and mwv equity incentive plans .
we issued awards to certain key employees and our directors pursuant to our rocktenn 2004 incentive stock plan , as amended , and our mwv 2005 performance incentive plan , as amended .
the awards were converted into westrock awards using the conversion factor as described in the business combination agreement .
( 3 ) in connection with the smurfit-stone acquisition , we assumed the smurfit-stone equity incentive plan , which was renamed the rock-tenn company ( sscc ) equity incentive plan .
the awards were converted into shares of rocktenn common stock , options and restricted stock units , as applicable , using the conversion factor as described in the merger agreement. .

                                                     | shares available for issuance | shares available for future grant | shares to be issued if performance is achieved at maximum | expect to make new awards
---------------------------------------------------- | ----------------------------- | --------------------------------- | --------------------------------------------------------- | -------------------------
amended and restated 2016 incentive stock plan ( 1 ) | 11.7                          | 5.1                               | 2.3                                                       | yes
2004 incentive stock plan ( 1 ) ( 2 )                | 15.8                          | 3.1                               | 0.0                                                       | no
2005 performance incentive plan ( 1 ) ( 2 )          | 12.8                          | 9.0                               | 0.0                                                       | no
rocktenn ( sscc ) equity inventive plan ( 1 ) ( 3 )  | 7.9                           | 5.9                               | 0.0                                                       | no

westrock company notes to consolidated financial statements 2014 ( continued ) note 20 .
stockholders 2019 equity capitalization our capital stock consists solely of common stock .
holders of our common stock are entitled to one vote per share .
our amended and restated certificate of incorporation also authorizes preferred stock , of which no shares have been issued .
the terms and provisions of such shares will be determined by our board of directors upon any issuance of such shares in accordance with our certificate of incorporation .
stock repurchase plan in july 2015 , our board of directors authorized a repurchase program of up to 40.0 million shares of our common stock , representing approximately 15% ( 15 % ) of our outstanding common stock as of july 1 , 2015 .
the shares of our common stock may be repurchased over an indefinite period of time at the discretion of management .
in fiscal 2019 , we repurchased approximately 2.1 million shares of our common stock for an aggregate cost of $ 88.6 million .
in fiscal 2018 , we repurchased approximately 3.4 million shares of our common stock for an aggregate cost of $ 195.1 million .
in fiscal 2017 , we repurchased approximately 1.8 million shares of our common stock for an aggregate cost of $ 93.0 million .
as of september 30 , 2019 , we had remaining authorization under the repurchase program authorized in july 2015 to purchase approximately 19.1 million shares of our common stock .
note 21 .
share-based compensation share-based compensation plans at our annual meeting of stockholders held on february 2 , 2016 , our stockholders approved the westrock company 2016 incentive stock plan .
the 2016 incentive stock plan was amended and restated on february 2 , 2018 ( the 201camended and restated 2016 incentive stock plan 201d ) .
the amended and restated 2016 incentive stock plan allows for the granting of options , restricted stock , sars and restricted stock units to certain key employees and directors .
the table below shows the approximate number of shares : available for issuance , available for future grant , to be issued if restricted awards granted with a performance condition recorded at target achieve the maximum award , and if new grants pursuant to the plan are expected to be issued , each as adjusted as necessary for corporate actions ( in millions ) .
shares available issuance shares available for future shares to be issued if performance is achieved at maximum expect to awards amended and restated 2016 incentive stock plan ( 1 ) 11.7 5.1 2.3 yes 2004 incentive stock plan ( 1 ) ( 2 ) 15.8 3.1 0.0 no 2005 performance incentive plan ( 1 ) ( 2 ) 12.8 9.0 0.0 no rocktenn ( sscc ) equity inventive plan ( 1 ) ( 3 ) 7.9 5.9 0.0 no ( 1 ) as part of the separation , equity-based incentive awards were generally adjusted to maintain the intrinsic value of awards immediately prior to the separation .
the number of unvested restricted stock awards and unexercised stock options and sars at the time of the separation were increased by an exchange factor of approximately 1.12 .
in addition , the exercise price of unexercised stock options and sars at the time of the separation was converted to decrease the exercise price by an exchange factor of approximately 1.12 .
( 2 ) in connection with the combination , westrock assumed all rocktenn and mwv equity incentive plans .
we issued awards to certain key employees and our directors pursuant to our rocktenn 2004 incentive stock plan , as amended , and our mwv 2005 performance incentive plan , as amended .
the awards were converted into westrock awards using the conversion factor as described in the business combination agreement .
( 3 ) in connection with the smurfit-stone acquisition , we assumed the smurfit-stone equity incentive plan , which was renamed the rock-tenn company ( sscc ) equity incentive plan .
the awards were converted into shares of rocktenn common stock , options and restricted stock units , as applicable , using the conversion factor as described in the merger agreement.


note 8 .
acquisitions during fiscal 2017 , cadence completed two business combinations for total cash consideration of $ 142.8 million , after taking into account cash acquired of $ 4.2 million .
the total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates .
cadence recorded a total of $ 76.4 million of acquired intangible assets ( of which $ 71.5 million represents in-process technology ) , $ 90.2 million of goodwill and $ 19.6 million of net liabilities consisting primarily of deferred tax liabilities .
cadence will also make payments to certain employees , subject to continued employment and other performance-based conditions , through the fourth quarter of fiscal 2020 .
during fiscal 2016 , cadence completed two business combinations for total cash consideration of $ 42.4 million , after taking into account cash acquired of $ 1.8 million .
the total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates .
cadence recorded a total of $ 23.6 million of goodwill , $ 23.2 million of acquired intangible assets and $ 2.6 million of net liabilities consisting primarily of deferred revenue .
cadence will also make payments to certain employees , subject to continued employment and other conditions , through the second quarter of fiscal a trust for the benefit of the children of lip-bu tan , cadence 2019s chief executive officer ( 201cceo 201d ) and director , owned less than 3% ( 3 % ) of nusemi inc , one of the companies acquired in 2017 , and less than 2% ( 2 % ) of rocketick technologies ltd. , one of the companies acquired in 2016 .
mr .
tan and his wife serve as co-trustees of the trust and disclaim pecuniary and economic interest in the trust .
the board of directors of cadence reviewed the transactions and concluded that it was in the best interests of cadence to proceed with the transactions .
mr .
tan recused himself from the board of directors 2019 discussion of the valuation of nusemi inc and rocketick technologies ltd .
and on whether to proceed with the transactions .
acquisition-related transaction costs there were no direct transaction costs associated with acquisitions during fiscal 2018 .
transaction costs associated with acquisitions were $ 0.6 million and $ 1.1 million during fiscal 2017 and 2016 , respectively .
these costs consist of professional fees and administrative costs and were expensed as incurred in cadence 2019s consolidated income statements .
note 9 .
goodwill and acquired intangibles goodwill the changes in the carrying amount of goodwill during fiscal 2018 and 2017 were as follows : gross carrying amount ( in thousands ) .

                                       | gross carryingamount ( in thousands )
-------------------------------------- | -------------------------------------
balance as of december 31 2016         | $ 572764
goodwill resulting from acquisitions   | 90218
effect of foreign currency translation | 3027
balance as of december 30 2017         | 666009
effect of foreign currency translation | -3737 ( 3737 )
balance as of december 29 2018         | $ 662272

cadence completed its annual goodwill impairment test during the third quarter of fiscal 2018 and determined that the fair value of cadence 2019s single reporting unit substantially exceeded the carrying amount of its net assets and that no impairment existed.


notes to consolidated financial statements 2014 ( continued ) a reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows ( in thousands ) : .

balance at october 1 2010                                          | $ 19900
------------------------------------------------------------------ | ----------
increases based on positions related to prior years                | 935
increases based on positions related to current year               | 11334
decreases relating to settlements with taxing authorities          | 2014
decreases relating to lapses of applicable statutes of limitations | -33 ( 33 )
balance at september 30 2011                                       | $ 32136

the company 2019s major tax jurisdictions as of september 30 , 2011 are the united states , california , iowa , singapore and canada .
for the united states , the company has open tax years dating back to fiscal year 1998 due to the carry forward of tax attributes .
for california and iowa , the company has open tax years dating back to fiscal year 2002 due to the carry forward of tax attributes .
for singapore , the company has open tax years dating back to fiscal year 2011 .
for canada , the company has open tax years dating back to fiscal year 2004 .
during the year ended september 30 , 2011 , the company did not recognize any significant amount of previously unrecognized tax benefits related to the expiration of the statute of limitations .
the company 2019s policy is to recognize accrued interest and penalties , if incurred , on any unrecognized tax benefits as a component of income tax expense .
the company recognized $ 0.5 million of accrued interest or penalties related to unrecognized tax benefits during fiscal year 2011 .
11 .
stockholders 2019 equity common stock at september 30 , 2011 , the company is authorized to issue 525000000 shares of common stock , par value $ 0.25 per share of which 195407396 shares are issued and 186386197 shares outstanding .
holders of the company 2019s common stock are entitled to such dividends as may be declared by the company 2019s board of directors out of funds legally available for such purpose .
dividends may not be paid on common stock unless all accrued dividends on preferred stock , if any , have been paid or declared and set aside .
in the event of the company 2019s liquidation , dissolution or winding up , the holders of common stock will be entitled to share pro rata in the assets remaining after payment to creditors and after payment of the liquidation preference plus any unpaid dividends to holders of any outstanding preferred stock .
each holder of the company 2019s common stock is entitled to one vote for each such share outstanding in the holder 2019s name .
no holder of common stock is entitled to cumulate votes in voting for directors .
the company 2019s second amended and restated certificate of incorporation provides that , unless otherwise determined by the company 2019s board of directors , no holder of common stock has any preemptive right to purchase or subscribe for any stock of any class which the company may issue or sell .
on august 3 , 2010 , the board of directors approved a stock repurchase program , pursuant to which the company is authorized to repurchase up to $ 200.0 million of the company 2019s common stock from time to time on the open market or in privately negotiated transactions as permitted by securities laws and other legal requirements .
during the fiscal year ended september 30 , 2011 , the company paid approximately $ 70.0 million ( including commissions ) in connection with the repurchase of 2768045 shares of its common stock ( paying an average price of $ 25.30 per share ) .
as of september 30 , 2011 , $ 130.0 million remained available under the existing share repurchase program .
page 110 skyworks / annual report 2011


devon energy corporation and subsidiaries notes to consolidated financial statements 2013 ( continued ) other debentures and notes following are descriptions of the various other debentures and notes outstanding at december 31 , 2014 and 2013 , as listed in the table presented at the beginning of this note .
geosouthern debt in december 2013 , in conjunction with the planned geosouthern acquisition , devon issued $ 2.25 billion aggregate principal amount of fixed and floating rate senior notes resulting in cash proceeds of approximately $ 2.2 billion , net of discounts and issuance costs .
the floating rate senior notes due in 2015 bear interest at a rate equal to three-month libor plus 0.45 percent , which rate will be reset quarterly .
the floating rate senior notes due in 2016 bears interest at a rate equal to three-month libor plus 0.54 percent , which rate will be reset quarterly .
the schedule below summarizes the key terms of these notes ( in millions ) . .

floating rate due december 15 2015          | $ 500
------------------------------------------- | --------
floating rate due december 15 2016          | 350
1.20% ( 1.20 % ) due december 15 2016 ( 1 ) | 650
2.25% ( 2.25 % ) due december 15 2018       | 750
discount and issuance costs                 | -2 ( 2 )
net proceeds                                | $ 2248

( 1 ) the 1.20% ( 1.20 % ) $ 650 million note due december 15 , 2016 was redeemed on november 13 , 2014 .
the senior notes were classified as short-term debt on devon 2019s consolidated balance sheet as of december 31 , 2013 due to certain redemption features in the event that the geosouthern acquisition was not completed on or prior to june 30 , 2014 .
on february 28 , 2014 , the geosouthern acquisition closed and thus the senior notes were subsequently classified as long-term debt .
additionally , during december 2013 , devon entered into a term loan agreement with a group of major financial institutions pursuant to which devon could draw up to $ 2.0 billion to finance , in part , the geosouthern acquisition and to pay transaction costs .
in february 2014 , devon drew the $ 2.0 billion of term loans for the geosouthern transaction , and the amount was subsequently repaid on june 30 , 2014 with the canadian divestiture proceeds that were repatriated to the u.s .
in june 2014 , at which point the term loan was terminated.


borrowings under the credit facility bear interest based on the daily balance outstanding at libor ( with no rate floor ) plus an applicable margin ( varying from 1.25% ( 1.25 % ) to 1.75% ( 1.75 % ) ) or , in certain cases a base rate ( based on a certain lending institution 2019s prime rate or as otherwise specified in the credit agreement , with no rate floor ) plus an applicable margin ( varying from 0.25% ( 0.25 % ) to 0.75% ( 0.75 % ) ) .
the credit facility also carries a commitment fee equal to the unused borrowings multiplied by an applicable margin ( varying from 0.25% ( 0.25 % ) to 0.35% ( 0.35 % ) ) .
the applicable margins are calculated quarterly and vary based on the company 2019s leverage ratio as set forth in the credit agreement .
upon entering into the credit facility in march 2011 , the company terminated its prior $ 200.0 million revolving credit facility .
the prior revolving credit facility was collateralized by substantially all of the company 2019s assets , other than trademarks , and included covenants , conditions and other terms similar to the company 2019s new credit facility .
in may 2011 , the company borrowed $ 25.0 million under the term loan facility to finance a portion of the acquisition of the company 2019s corporate headquarters .
the interest rate on the term loan was 1.5% ( 1.5 % ) during the year ended december 31 , 2011 .
the maturity date of the term loan is march 2015 , which is the end of the credit facility term .
the company expects to refinance the term loan in early 2013 with the loan assumed in the acquisition of the company 2019s corporate headquarters .
during the three months ended september 30 , 2011 , the company borrowed $ 30.0 million under the revolving credit facility to fund seasonal working capital requirements and repaid it during the three months ended december 31 , 2011 .
the interest rate under the revolving credit facility was 1.5% ( 1.5 % ) during the year ended december 31 , 2011 , and no balance was outstanding as of december 31 , 2011 .
no balances were outstanding under the prior revolving credit facility during the year ended december 31 , 2010 .
long term debt the company has long term debt agreements with various lenders to finance the acquisition or lease of qualifying capital investments .
loans under these agreements are collateralized by a first lien on the related assets acquired .
as these agreements are not committed facilities , each advance is subject to approval by the lenders .
additionally , these agreements include a cross default provision whereby an event of default under other debt obligations , including the company 2019s credit facility , will be considered an event of default under these agreements .
these agreements require a prepayment fee if the company pays outstanding amounts ahead of the scheduled terms .
the terms of the credit facility limit the total amount of additional financing under these agreements to $ 40.0 million , of which $ 21.5 million was available for additional financing as of december 31 , 2011 .
at december 31 , 2011 and 2010 , the outstanding principal balance under these agreements was $ 14.5 million and $ 15.9 million , respectively .
currently , advances under these agreements bear interest rates which are fixed at the time of each advance .
the weighted average interest rates on outstanding borrowings were 3.5% ( 3.5 % ) , 5.3% ( 5.3 % ) and 5.9% ( 5.9 % ) for the years ended december 31 , 2011 , 2010 and 2009 , respectively .
the following are the scheduled maturities of long term debt as of december 31 , 2011 : ( in thousands ) .

2012                                         | $ 6882
-------------------------------------------- | --------------
2013 ( 1 )                                   | 65919
2014                                         | 2972
2015                                         | 1951
2016                                         | 2014
total scheduled maturities of long term debt | 77724
less current maturities of long term debt    | -6882 ( 6882 )
long term debt obligations                   | $ 70842

( 1 ) includes the repayment of $ 25.0 million borrowed under the term loan facility , which is due in march 2015 , but is planned to be refinanced in early 2013 with the loan assumed in the acquisition of the company 2019s corporate headquarters.


software and will give the company a comprehensive design-to-silicon flow that links directly into the semiconductor manufacturing process .
integrating hpl 2019s yield management and test chip technologies into the company 2019s industry-leading dfm portfolio is also expected to enable customers to increase their productivity and improve profitability in the design and manufacture of advanced semiconductor devices .
purchase price .
the company paid $ 11.0 million in cash for all outstanding shares of hpl .
in addition , the company had a prior investment in hpl of approximately $ 1.9 million .
the total purchase consideration consisted of: .

                          | ( in thousands )
------------------------- | ----------------
cash paid                 | $ 11001
prior investment in hpl   | 1872
acquisition-related costs | 2831
total purchase price      | $ 15704

acquisition-related costs of $ 2.8 million consist primarily of legal , tax and accounting fees of $ 1.6 million , $ 0.3 million of estimated facilities closure costs and other directly related charges , and $ 0.9 million in employee termination costs .
as of october 31 , 2006 , the company had paid $ 2.2 million of the acquisition related costs , of which $ 1.1 million were for professional services costs , $ 0.2 million were for facilities closure costs and $ 0.9 million were for employee termination costs .
the $ 0.6 million balance remaining at october 31 , 2006 consists of professional and tax-related service fees and facilities closure costs .
assets acquired .
the company acquired $ 8.5 million of intangible assets consisting of $ 5.1 million in core developed technology , $ 3.2 million in customer relationships and $ 0.2 million in backlog to be amortized over two to four years .
approximately $ 0.8 million of the purchase price represents the fair value of acquired in-process research and development projects that have not yet reached technological feasibility and have no alternative future use .
accordingly , the amount was immediately expensed and included in the company 2019s condensed consolidated statement of operations for the first quarter of fiscal year 2006 .
additionally , the company acquired tangible assets of $ 14.0 million and assumed liabilities of $ 10.9 million .
goodwill , representing the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in the merger was $ 3.4 million .
goodwill resulted primarily from the company 2019s expectation of synergies from the integration of hpl 2019s technology with the company 2019s technology and operations .
other .
during the fiscal year 2006 , the company completed an asset acquisition for cash consideration of $ 1.5 million .
this acquisition is not considered material to the company 2019s consolidated balance sheet and results of operations .
fiscal 2005 acquisitions nassda corporation ( nassda ) the company acquired nassda on may 11 , 2005 .
reasons for the acquisition .
the company believes nassda 2019s full-chip circuit simulation and analysis software will broaden its offerings of transistor-level circuit simulation tools , particularly in the area of mixed-signal and memory design .
purchase price .
the company acquired all the outstanding shares of nassda for total cash consideration of $ 200.2 million , or $ 7.00 per share .
in addition , as required by the merger agreement , certain nassda officers , directors and employees who were defendants in certain preexisting litigation


note 18 2013 earnings per share ( eps ) basic eps is calculated by dividing net earnings attributable to allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period .
diluted eps is calculated after adjusting the denominator of the basic eps calculation for the effect of all potentially dilutive ordinary shares , which in the company 2019s case , includes shares issuable under share-based compensation plans .
the following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations. .

in millions                                 | 2017 | 2016 | 2015
------------------------------------------- | ---- | ---- | ----
weighted-average number of basic shares     | 95.1 | 95.8 | 95.9
shares issuable under incentive stock plans | 0.9  | 1.1  | 1.0
weighted-average number of diluted shares   | 96.0 | 96.9 | 96.9

at december 31 , 2017 , 0.1 million stock options were excluded from the computation of weighted average diluted shares outstanding because the effect of including these shares would have been anti-dilutive .
note 19 2013 commitments and contingencies the company is involved in various litigations , claims and administrative proceedings , including those related to environmental and product warranty matters .
amounts recorded for identified contingent liabilities are estimates , which are reviewed periodically and adjusted to reflect additional information when it becomes available .
subject to the uncertainties inherent in estimating future costs for contingent liabilities , except as expressly set forth in this note , management believes that any liability which may result from these legal matters would not have a material adverse effect on the financial condition , results of operations , liquidity or cash flows of the company .
environmental matters the company is dedicated to an environmental program to reduce the utilization and generation of hazardous materials during the manufacturing process and to remediate identified environmental concerns .
as to the latter , the company is currently engaged in site investigations and remediation activities to address environmental cleanup from past operations at current and former production facilities .
the company regularly evaluates its remediation programs and considers alternative remediation methods that are in addition to , or in replacement of , those currently utilized by the company based upon enhanced technology and regulatory changes .
changes to the company's remediation programs may result in increased expenses and increased environmental reserves .
the company is sometimes a party to environmental lawsuits and claims and has received notices of potential violations of environmental laws and regulations from the u.s .
environmental protection agency and similar state authorities .
it has also been identified as a potentially responsible party ( "prp" ) for cleanup costs associated with off-site waste disposal at federal superfund and state remediation sites .
for all such sites , there are other prps and , in most instances , the company 2019s involvement is minimal .
in estimating its liability , the company has assumed it will not bear the entire cost of remediation of any site to the exclusion of other prps who may be jointly and severally liable .
the ability of other prps to participate has been taken into account , based on our understanding of the parties 2019 financial condition and probable contributions on a per site basis .
additional lawsuits and claims involving environmental matters are likely to arise from time to time in the future .
the company incurred $ 3.2 million , $ 23.3 million , and $ 4.4 million of expenses during the years ended december 31 , 2017 , 2016 and 2015 , respectively , for environmental remediation at sites presently or formerly owned or leased by the company .
in the fourth-quarter of 2016 , with the collaboration and approval of state regulators , the company launched a proactive , alternative approach to remediate two sites in the united states .
this approach will allow the company to more aggressively address environmental conditions at these sites and reduce the impact of potential changes in regulatory requirements .
as a result , the company recorded a $ 15 million charge for environmental remediation in the fourth quarter of 2016 .
environmental remediation costs are recorded in costs of goods sold within the consolidated statements of comprehensive income .
as of december 31 , 2017 and 2016 , the company has recorded reserves for environmental matters of $ 28.9 million and $ 30.6 million .
the total reserve at december 31 , 2017 and 2016 included $ 8.9 million and $ 9.6 million related to remediation of sites previously disposed by the company .
environmental reserves are classified as accrued expenses and other current liabilities or other noncurrent liabilities based on their expected term .
the company's total current environmental reserve at december 31 , 2017 and 2016 was $ 12.6 million and $ 6.1 million and the remainder is classified as noncurrent .
given the evolving nature of environmental laws , regulations and technology , the ultimate cost of future compliance is uncertain.


years 2002 , 2003 , 2004 , and the first two quarters of fiscal 2005 .
the restatement related to tax matters .
the company provided information to the sec staff relating to the facts and circumstances surrounding the restatement .
on july 28 , 2006 , the company filed an amendment to its annual report on form 10-k for the fiscal year ended may 29 , 2005 .
the filing amended item 6 .
selected financial data and exhibit 12 , computation of ratios of earnings to fixed charges , for fiscal year 2001 , and certain restated financial information for fiscal years 1999 and 2000 , all related to the application of certain of the company 2019s reserves for the three years and fiscal year 1999 income tax expense .
the company provided information to the sec staff relating to the facts and circumstances surrounding the amended filing .
the company reached an agreement with the sec staff concerning matters associated with these amended filings .
that proposed settlement was approved by the securities and exchange commission on july 17 , 2007 .
on july 24 , 2007 , the sec filed its complaint against the company in the united states district court for the district of colorado , followed by an executed consent , which without the company admitting or denying the allegations of the complaint , reflects the terms of the settlement , including payment by the company of a civil penalty of $ 45 million and the company 2019s agreement to be permanently enjoined from violating certain provisions of the federal securities laws .
additionally , the company made approximately $ 2 million in indemnity payments on behalf of former employees concluding separate settlements with the sec .
the company recorded charges of $ 25 million in fiscal 2004 , $ 21.5 million in the third quarter of fiscal 2005 , and $ 1.2 million in the first quarter of fiscal 2007 in connection with the expected settlement of these matters .
three purported class actions were filed in united states district court for nebraska , rantala v .
conagra foods , inc. , et .
al. , case no .
805cv349 , and bright v .
conagra foods , inc. , et .
al. , case no .
805cv348 on july 18 , 2005 , and boyd v .
conagra foods , inc. , et .
al. , case no .
805cv386 on august 8 , 2005 .
the lawsuits are against the company , its directors and its employee benefits committee on behalf of participants in the company 2019s employee retirement income savings plans .
the lawsuits allege violations of the employee retirement income security act ( erisa ) in connection with the events resulting in the company 2019s april 2005 restatement of its financial statements and related matters .
the company has reached a settlement with the plaintiffs in these actions subject to court approval .
the settlement includes a $ 4 million payment , most of which will be paid by an insurer .
the company has also agreed to make certain prospective changes to its benefit plans as part of the settlement .
2006 vs .
2005 net sales ( $ in millions ) reporting segment fiscal 2006 net sales fiscal 2005 net sales % (  % ) increase/ ( decrease ) .

reporting segment         | fiscal 2006 net sales | fiscal 2005 net sales | % (  % ) increase/ ( decrease )
------------------------- | --------------------- | --------------------- | -------------------------------
consumer foods            | $ 6504                | $ 6598                | ( 1 ) % (  % )
food and ingredients      | 3189                  | 2986                  | 7% ( 7 % )
trading and merchandising | 1186                  | 1224                  | ( 3 ) % (  % )
international foods       | 603                   | 576                   | 5% ( 5 % )
total                     | $ 11482               | $ 11384               | 1% ( 1 % )

overall , company net sales increased $ 98 million to $ 11.5 billion in fiscal 2006 , primarily reflecting favorable results in the food and ingredients and international foods segments .
price increases driven by higher input costs for potatoes , wheat milling and dehydrated vegetables within the food and ingredients segment , coupled with the strength of foreign currencies within the international foods segment enhanced net sales .
these increases were partially offset by volume declines in the consumer foods segment , principally related to certain shelf stable brands and declines in the trading and merchandising segment related to decreased volumes and certain divestitures and closures.


insurance arrangement .
as a result of the adoption of this new guidance , the company recorded a liability representing the actuarial present value of the future death benefits as of the employees 2019 expected retirement date of $ 45 million with the offset reflected as a cumulative-effect adjustment to january 1 , 2008 retained earnings and accumulated other comprehensive income ( loss ) in the amounts of $ 4 million and $ 41 million , respectively , in the company 2019s consolidated statement of stockholders 2019 equity .
it is currently expected that minimal , if any , further cash payments will be required to fund these policies .
the net periodic cost for these split-dollar life insurance arrangements was $ 6 million in both the years ended december 31 , 2009 and 2008 .
the company has recorded a liability representing the actuarial present value of the future death benefits as of the employees 2019 expected retirement date of $ 48 million and $ 47 million as of december 31 , 2009 and december 31 , 2008 , respectively .
defined contribution plan the company and certain subsidiaries have various defined contribution plans , in which all eligible employees participate .
in the u.s. , the 401 ( k ) plan is a contributory plan .
matching contributions are based upon the amount of the employees 2019 contributions .
effective january 1 , 2005 , newly hired employees have a higher maximum matching contribution at 4% ( 4 % ) on the first 5% ( 5 % ) of employee contributions , compared to 3% ( 3 % ) on the first 6% ( 6 % ) of employee contributions for employees hired prior to january 2005 .
effective january 1 , 2009 , the company temporarily suspended all matching contributions to the motorola 401 ( k ) plan .
the company 2019s expenses , primarily relating to the employer match , for all defined contribution plans , for the years ended december 31 , 2009 , 2008 and 2007 were $ 8 million , $ 95 million and $ 116 million , respectively .
8 .
share-based compensation plans and other incentive plans stock options , stock appreciation rights and employee stock purchase plan the company grants options to acquire shares of common stock to certain employees , and existing option holders in connection with the merging of option plans following an acquisition .
each option granted and stock appreciation right has an exercise price of no less than 100% ( 100 % ) of the fair market value of the common stock on the date of the grant .
the awards have a contractual life of five to ten years and vest over two to four years .
stock options and stock appreciation rights assumed or replaced with comparable stock options or stock appreciation rights in conjunction with a change in control only become exercisable if the holder is also involuntarily terminated ( for a reason other than cause ) or quits for good reason within 24 months of a change in control .
the employee stock purchase plan allows eligible participants to purchase shares of the company 2019s common stock through payroll deductions of up to 10% ( 10 % ) of eligible compensation on an after-tax basis .
plan participants cannot purchase more than $ 25000 of stock in any calendar year .
the price an employee pays per share is 85% ( 85 % ) of the lower of the fair market value of the company 2019s stock on the close of the first trading day or last trading day of the purchase period .
the plan has two purchase periods , the first one from october 1 through march 31 and the second one from april 1 through september 30 .
for the years ended december 31 , 2009 , 2008 and 2007 , employees purchased 29.4 million , 18.9 million and 10.2 million shares , respectively , at purchase prices of $ 3.60 and $ 3.68 , $ 7.91 and $ 6.07 , and $ 14.93 and $ 15.02 , respectively .
the company calculates the value of each employee stock option , estimated on the date of grant , using the black-scholes option pricing model .
the weighted-average estimated fair value of employee stock options granted during 2009 , 2008 and 2007 was $ 2.78 , $ 3.47 and $ 5.95 , respectively , using the following weighted-average assumptions : 2009 2008 2007 .

                        | 2009             | 2008             | 2007
----------------------- | ---------------- | ---------------- | ----------------
expected volatility     | 57.1% ( 57.1 % ) | 56.4% ( 56.4 % ) | 28.3% ( 28.3 % )
risk-free interest rate | 1.9% ( 1.9 % )   | 2.4% ( 2.4 % )   | 4.5% ( 4.5 % )
dividend yield          | 0.0% ( 0.0 % )   | 2.7% ( 2.7 % )   | 1.1% ( 1.1 % )
expected life ( years ) | 3.9              | 5.5              | 6.5


12feb201521095992 performance graph the following graph compares the performance of our common stock with that of the s&p 500 index and the s&p 500 healthcare equipment index .
the cumulative total return listed below assumes an initial investment of $ 100 on december 31 , 2009 and reinvestment of dividends .
comparison of 5 year cumulative total return rs $ 200 2009 2010 2011 201420132012 edwards lifesciences corporation s&p 500 s&p 500 healthcare equipment december 31 .

total cumulative return            | 2010     | 2011     | 2012     | 2013     | 2014
---------------------------------- | -------- | -------- | -------- | -------- | --------
edwards lifesciences               | $ 186.16 | $ 162.81 | $ 207.65 | $ 151.43 | $ 293.33
s&p 500                            | 115.06   | 117.49   | 136.30   | 180.44   | 205.14
s&p 500 healthcare equipment index | 96.84    | 102.07   | 120.66   | 153.85   | 194.33


changes in the benchmark index component of the 10-year treasury yield .
the company def signated these derivatives as cash flow hedges .
on october 13 , 2015 , in conjunction with the pricing of the $ 4.5 billion senior notes , the companyr terminated these treasury lock contracts for a cash settlement payment of $ 16 million , which was recorded as a component of other comprehensive earnings and will be reclassified as an adjustment to interest expense over the ten years during which the related interest payments that were hedged will be recognized in income .
foreign currency risk we are exposed to foreign currency risks that arise from normal business operations .
these risks include the translation of local currency balances of foreign subsidiaries , transaction gains and losses associated with intercompany loans with foreign subsidiaries and transactions denominated in currencies other than a location's functional currency .
we manage the exposure to these risks through a combination of normal operating activities and the use of foreign currency forward contracts .
contracts are denominated in currtt encies of major industrial countries .
our exposure to foreign currency exchange risks generally arises from our non-u.s .
operations , to the extent they are conducted ind local currency .
changes in foreign currency exchange rates affect translations of revenues denominated in currencies other than the u.s .
dollar .
during the years ended december 31 , 2016 , 2015 and 2014 , we generated approximately $ 1909 million , $ 1336 million and $ 1229 million , respectively , in revenues denominated in currencies other than the u.s .
dollar .
the major currencies to which our revenues are exposed are the brazilian real , the euro , the british pound sterling and the indian rupee .
a 10% ( 10 % ) move in average exchange rates for these currencies ( assuming a simultaneous and immediate 10% ( 10 % ) change in all of such rates for the relevant period ) would have resulted in the following increase or ( decrease ) in our reported revenues for the years ended december 31 , 2016 , 2015 and 2014 ( in millions ) : .

currency       | 2016  | 2015  | 2014
-------------- | ----- | ----- | -----
pound sterling | $ 47  | $ 34  | $ 31
euro           | 38    | 33    | 30
real           | 32    | 29    | 38
indian rupee   | 12    | 10    | 8
total impact   | $ 129 | $ 106 | $ 107

while our results of operations have been impacted by the effects of currency fluctuations , our international operations' revenues and expenses are generally denominated in local currency , which reduces our economic exposure to foreign exchange risk in those jurisdictions .
revenues included $ 100 million and $ 243 million and net earnings included $ 10 million , anrr d $ 31 million , respectively , of unfavorable foreign currency impact during 2016 and 2015 resulting from a stronger u.s .
dollar during these years compared to thet preceding year .
in 2017 , we expect continued unfavorable foreign currency impact on our operating income resulting from the continued strengthening of the u.s .
dollar vs .
other currencies .
our foreign exchange risk management policy permits the use of derivative instruments , such as forward contracts and options , to reduce volatility in our results of operations and/or cash flows resulting from foreign exchange rate fluctuations .
we do not enter into foreign currency derivative instruments for trading purposes or to engage in speculative activitr y .
we do periodically enter inttt o foreign currency forward exchange contracts to hedge foreign currency exposure to intercompany loans .
as of december 31 , 2016 , the notional amount of these derivatives was approximately $ 143 million and the fair value was nominal .
these derivatives are intended to hedge the foreign exchange risks related to intercompany loans but have not been designated as hedges for accounting purposes .
we also use currency forward contracts to manage our exposure to fluctuations in costs caused by variations in indian rupee ( "inr" ) exchange rates .
as of december 31 , 2016 , the notional amount of these derivatives was approximately $ 7 million and the fair value was ll less than $ 1 million .
these inr forward contracts are designated as cash flow hedges .
the fair value of these currency forward contracts is determined using currency exchange market rates , obtained from reliable , independent , third m party banks , at the balance sheet date .
the fair value of forward contracts is subject to changes in currency exchange rates .
the company has no ineffectiveness related to its use of currency forward contracts in connection with inr cash flow hedges .
in conjunction with entering into the definitive agreement to acquire clear2pay in september 2014 , we initiated a foreign currency forward contract to purchase euros and sell u.s .
dollars to manage the risk arising from fluctuations in exchange rates until the closing because the purchase price was stated in euros .
as this derivative did not qualify for hedge accounting , we recorded a charge of $ 16 million in other income ( expense ) , net during the third quarter of 2014 .
this forward contract was settled on october 1 , 2014.


notes to the consolidated financial statements note 1 .
general description of business we are a global cruise company .
we own royal caribbean international , celebrity cruises , pullmantur , azamara club cruises , cdf croisi e8res de france and a 50% ( 50 % ) joint venture interest in tui cruises .
together , these six brands operate a combined 41 ships as of december 31 , 2012 .
our ships operate on a selection of worldwide itineraries that call on approximately 455 destinations on all seven continents .
basis for preparation of consolidated financial statements the consolidated financial statements are prepared in accordance with accounting principles generally accepted in the united states of america ( 201cgaap 201d ) .
estimates are required for the preparation of financial statements in accordance with these principles .
actual results could differ from these estimates .
all significant intercompany accounts and transactions are eliminated in consolidation .
we consolidate entities over which we have control , usually evidenced by a direct ownership interest of greater than 50% ( 50 % ) , and variable interest entities where we are determined to be the primary beneficiary .
see note 6 .
other assets for further information regarding our variable interest entities .
for affiliates we do not control but over which we have significant influence on financial and operat- ing policies , usually evidenced by a direct ownership interest from 20% ( 20 % ) to 50% ( 50 % ) , the investment is accounted for using the equity method .
we consolidate the operating results of pullmantur and its wholly-owned subsidiary , cdf croisi e8res de france , on a two-month lag to allow for more timely preparation of our con- solidated financial statements .
no material events or transactions affecting pullmantur or cdf croisi e8res de france have occurred during the two-month lag period of november 2012 and december 2012 that would require disclosure or adjustment to our con- solidated financial statements as of december 31 , 2012 , except for the impairment of pullmantur related assets , as described in note 3 .
goodwill , note 4 .
intangible assets , note 5 .
property and equipment and note 12 .
income taxes .
note 2 .
summary of significant accounting policies revenues and expenses deposits received on sales of passenger cruises are initially recorded as customer deposit liabilities on our balance sheet .
customer deposits are subsequently recognized as passenger ticket revenues , together with revenues from onboard and other goods and services and all associated direct costs of a voyage , upon completion of voyages with durations of ten days or less , and on a pro-rata basis for voyages in excess of ten days .
revenues and expenses include port costs that vary with guest head counts .
the amounts of such port costs included in passenger ticket revenues on a gross basis were $ 459.8 million , $ 442.9 million and $ 398.0 million for the years 2012 , 2011 and 2010 , respectively .
cash and cash equivalents cash and cash equivalents include cash and market- able securities with original maturities of less than 90 days .
inventories inventories consist of provisions , supplies and fuel carried at the lower of cost ( weighted-average ) or market .
property and equipment property and equipment are stated at cost less accu- mulated depreciation and amortization .
we capitalize interest as part of the cost of acquiring certain assets .
improvement costs that we believe add value to our ships are capitalized as additions to the ship and depreciated over the shorter of the improvements 2019 estimated useful lives or that of the associated ship .
the estimated cost and accumulated depreciation of replaced or refurbished ship components are written off and any resulting losses are recognized in cruise operating expenses .
liquidated damages received from shipyards as a result of the late delivery of a new ship are recorded as reductions to the cost basis of the ship .
depreciation of property and equipment is computed using the straight-line method over the estimated useful life of the asset .
the useful lives of our ships are generally 30 years , net of a 15% ( 15 % ) projected residual value .
the 30-year useful life of our newly constructed ships and 15% ( 15 % ) associated residual value are both based on the weighted-average of all major components of a ship .
depreciation for assets under capital leases is computed using the shorter of the lease term or related asset life .
( see note 5 .
property and equipment. ) depreciation of property and equipment is computed utilizing the following useful lives: .

                                   | years
---------------------------------- | ---------------------------------------------------
ships                              | 30
ship improvements                  | 3-20
buildings and improvements         | 10-40
computer hardware and software     | 3-5
transportation equipment and other | 3-30
leasehold improvements             | shorter of remaining lease term or useful life 3-30

computer hardware and software 3 20135 transportation equipment and other 3 201330 leasehold improvements shorter of remaining lease term or useful life 3 201330 0494.indd 71 3/27/13 12:53 pm


application of specific accounting literature .
for the nonconsolidated proprietary tob trusts and qspe tob trusts , the company recognizes only its residual investment on its balance sheet at fair value and the third-party financing raised by the trusts is off-balance sheet .
the following table summarizes selected cash flow information related to municipal bond securitizations for the years 2008 , 2007 and 2006 : in billions of dollars 2008 2007 2006 .

in billions of dollars                                             | 2008  | 2007   | 2006
------------------------------------------------------------------ | ----- | ------ | ----
proceeds from new securitizations                                  | $ 1.2 | $ 10.5 | 2014
cash flows received on retained interests and other net cash flows | 0.5   | 2014   | 2014

cash flows received on retained interests and other net cash flows 0.5 2014 2014 municipal investments municipal investment transactions represent partnerships that finance the construction and rehabilitation of low-income affordable rental housing .
the company generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits earned from the affordable housing investments made by the partnership .
client intermediation client intermediation transactions represent a range of transactions designed to provide investors with specified returns based on the returns of an underlying security , referenced asset or index .
these transactions include credit-linked notes and equity-linked notes .
in these transactions , the spe typically obtains exposure to the underlying security , referenced asset or index through a derivative instrument , such as a total-return swap or a credit-default swap .
in turn the spe issues notes to investors that pay a return based on the specified underlying security , referenced asset or index .
the spe invests the proceeds in a financial asset or a guaranteed insurance contract ( gic ) that serves as collateral for the derivative contract over the term of the transaction .
the company 2019s involvement in these transactions includes being the counterparty to the spe 2019s derivative instruments and investing in a portion of the notes issued by the spe .
in certain transactions , the investor 2019s maximum risk of loss is limited and the company absorbs risk of loss above a specified level .
the company 2019s maximum risk of loss in these transactions is defined as the amount invested in notes issued by the spe and the notional amount of any risk of loss absorbed by the company through a separate instrument issued by the spe .
the derivative instrument held by the company may generate a receivable from the spe ( for example , where the company purchases credit protection from the spe in connection with the spe 2019s issuance of a credit-linked note ) , which is collateralized by the assets owned by the spe .
these derivative instruments are not considered variable interests under fin 46 ( r ) and any associated receivables are not included in the calculation of maximum exposure to the spe .
structured investment vehicles structured investment vehicles ( sivs ) are spes that issue junior notes and senior debt ( medium-term notes and short-term commercial paper ) to fund the purchase of high quality assets .
the junior notes are subject to the 201cfirst loss 201d risk of the sivs .
the sivs provide a variable return to the junior note investors based on the net spread between the cost to issue the senior debt and the return realized by the high quality assets .
the company acts as manager for the sivs and , prior to december 13 , 2007 , was not contractually obligated to provide liquidity facilities or guarantees to the sivs .
in response to the ratings review of the outstanding senior debt of the sivs for a possible downgrade announced by two ratings agencies and the continued reduction of liquidity in the siv-related asset-backed commercial paper and medium-term note markets , on december 13 , 2007 , citigroup announced its commitment to provide support facilities that would support the sivs 2019 senior debt ratings .
as a result of this commitment , citigroup became the sivs 2019 primary beneficiary and began consolidating these entities .
on february 12 , 2008 , citigroup finalized the terms of the support facilities , which took the form of a commitment to provide $ 3.5 billion of mezzanine capital to the sivs in the event the market value of their junior notes approaches zero .
the mezzanine capital facility was increased by $ 1 billion to $ 4.5 billion , with the additional commitment funded during the fourth quarter of 2008 .
the facilities rank senior to the junior notes but junior to the commercial paper and medium-term notes .
the facilities were at arm 2019s-length terms .
interest was paid on the drawn amount of the facilities and a per annum fee was paid on the unused portion .
during the period to november 18 , 2008 , the company wrote down $ 3.3 billion on siv assets .
in order to complete the wind-down of the sivs , the company , in a nearly cashless transaction , purchased the remaining assets of the sivs at fair value , with a trade date of november 18 , 2008 .
the company funded the purchase of the siv assets by assuming the obligation to pay amounts due under the medium-term notes issued by the sivs , as the medium-term notes mature .
the net funding provided by the company to fund the purchase of the siv assets was $ 0.3 billion .
as of december 31 , 2008 , the carrying amount of the purchased siv assets was $ 16.6 billion , of which $ 16.5 billion is classified as htm assets .
investment funds the company is the investment manager for certain investment funds that invest in various asset classes including private equity , hedge funds , real estate , fixed income and infrastructure .
the company earns a management fee , which is a percentage of capital under management , and may earn performance fees .
in addition , for some of these funds the company has an ownership interest in the investment funds .
the company has also established a number of investment funds as opportunities for qualified employees to invest in private equity investments .
the company acts as investment manager to these funds and may provide employees with financing on both a recourse and non-recourse basis for a portion of the employees 2019 investment commitments.


skyworks solutions , inc .
notes to consolidated financial statements 2014 ( continued ) maintained a valuation allowance of $ 47.0 million .
this valuation allowance is comprised of $ 33.6 million related to u.s .
state tax credits , of which $ 3.6 million are state tax credits acquired from aati in fiscal year 2012 , and $ 13.4 million related to foreign deferred tax assets .
if these benefits are recognized in a future period the valuation allowance on deferred tax assets will be reversed and up to a $ 46.6 million income tax benefit , and up to a $ 0.4 million reduction to goodwill may be recognized .
the company will need to generate $ 209.0 million of future united states federal taxable income to utilize our united states deferred tax assets as of september 28 , 2012 .
deferred tax assets are recognized for foreign operations when management believes it is more likely than not that the deferred tax assets will be recovered during the carry forward period .
the company will continue to assess its valuation allowance in future periods .
as of september 28 , 2012 , the company has united states federal net operating loss carry forwards of approximately $ 74.3 million , including $ 29.5 million related to the acquisition of sige , which will expire at various dates through 2030 and $ 28.1 million related to the acquisition of aati , which will expire at various dates through 2031 .
the utilization of these net operating losses is subject to certain annual limitations as required under internal revenue code section 382 and similar state income tax provisions .
the company also has united states federal income tax credit carry forwards of $ 37.8 million , of which $ 30.4 million of federal income tax credit carry forwards have not been recorded as a deferred tax asset .
the company also has state income tax credit carry forwards of $ 33.6 million , for which the company has provided a valuation allowance .
the united states federal tax credits expire at various dates through 2032 .
the state tax credits relate primarily to california research tax credits which can be carried forward indefinitely .
the company has continued to expand its operations and increase its investments in numerous international jurisdictions .
these activities will increase the company 2019s earnings attributable to foreign jurisdictions .
as of september 28 , 2012 , no provision has been made for united states federal , state , or additional foreign income taxes related to approximately $ 371.5 million of undistributed earnings of foreign subsidiaries which have been or are intended to be permanently reinvested .
it is not practicable to determine the united states federal income tax liability , if any , which would be payable if such earnings were not permanently reinvested .
the company 2019s gross unrecognized tax benefits totaled $ 52.4 million and $ 32.1 million as of september 28 , 2012 and september 30 , 2011 , respectively .
of the total unrecognized tax benefits at september 28 , 2012 , $ 38.8 million would impact the effective tax rate , if recognized .
the remaining unrecognized tax benefits would not impact the effective tax rate , if recognized , due to the company 2019s valuation allowance and certain positions which were required to be capitalized .
there are no positions which the company anticipates could change within the next twelve months .
a reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows ( in thousands ) : unrecognized tax benefits .

                                                                   | unrecognized tax benefits
------------------------------------------------------------------ | -------------------------
balance at september 30 2011                                       | $ 32136
increases based on positions related to prior years                | 9004
increases based on positions related to current year               | 11265
decreases relating to settlements with taxing authorities          | 2014
decreases relating to lapses of applicable statutes of limitations | -25 ( 25 )
balance at september 28 2012                                       | $ 52380

page 114 annual report


echostar communications corporation notes to consolidated financial statements - continued closing price of the class a common stock on the last business day of each calendar quarter in which such shares of class a common stock are deemed sold to an employee under the espp .
the espp shall terminate upon the first to occur of ( i ) october 1 , 2007 or ( ii ) the date on which the espp is terminated by the board of directors .
during 2000 , 2001 and 2002 employees purchased approximately 58000 ; 80000 and 108000 shares of class a common stock through the espp , respectively .
401 ( k ) employee savings plan echostar sponsors a 401 ( k ) employee savings plan ( the 201c401 ( k ) plan 201d ) for eligible employees .
voluntary employee contributions to the 401 ( k ) plan may be matched 50% ( 50 % ) by echostar , subject to a maximum annual contribution by echostar of $ 1000 per employee .
matching 401 ( k ) contributions totaled approximately $ 1.6 million , $ 2.1 million and $ 2.4 million during the years ended december 31 , 2000 , 2001 and 2002 , respectively .
echostar also may make an annual discretionary contribution to the plan with approval by echostar 2019s board of directors , subject to the maximum deductible limit provided by the internal revenue code of 1986 , as amended .
these contributions may be made in cash or in echostar stock .
forfeitures of unvested participant balances which are retained by the 401 ( k ) plan may be used to fund matching and discretionary contributions .
expense recognized relating to discretionary contributions was approximately $ 7 million , $ 225 thousand and $ 17 million during the years ended december 31 , 2000 , 2001 and 2002 , respectively .
9 .
commitments and contingencies leases future minimum lease payments under noncancelable operating leases as of december 31 , 2002 , are as follows ( in thousands ) : year ending december 31 .

2003                         | $ 17274
---------------------------- | -------
2004                         | 14424
2005                         | 11285
2006                         | 7698
2007                         | 3668
thereafter                   | 1650
total minimum lease payments | 55999

total rent expense for operating leases approximated $ 9 million , $ 14 million and $ 16 million in 2000 , 2001 and 2002 , respectively .
purchase commitments as of december 31 , 2002 , echostar 2019s purchase commitments totaled approximately $ 359 million .
the majority of these commitments relate to echostar receiver systems and related components .
all of the purchases related to these commitments are expected to be made during 2003 .
echostar expects to finance these purchases from existing unrestricted cash balances and future cash flows generated from operations .
patents and intellectual property many entities , including some of echostar 2019s competitors , now have and may in the future obtain patents and other intellectual property rights that cover or affect products or services directly or indirectly related to those that echostar offers .
echostar may not be aware of all patents and other intellectual property rights that its products may potentially infringe .
damages in patent infringement cases can include a tripling of actual damages in certain cases .
further , echostar cannot estimate the extent to which it may be required in the future to obtain licenses with respect to


respectively .
the federal tax attribute carryovers will expire after 16 to 17 years , the state after five to 10 years , and the majority of international after six years with the remaining international expiring in one year or with an indefinite carryover period .
the tax attributes being carried over arise as certain jurisdictions may have tax losses or may have inabilities to utilize certain losses without the same type of taxable income .
as of december 31 , 2013 , the company has provided $ 23 million of valuation allowance against certain of these deferred tax assets based on management's determination that it is more-likely-than-not that the tax benefits related to these assets will not be realized .
the valuation allowance was reduced in 2013 mainly due to the expiration of the tax attributes .
during 2013 , the company contributed $ 476 million to its u.s .
and international pension plans and $ 6 million to its postretirement plans .
during 2012 , the company contributed $ 1.079 billion to its u.s .
and international pension plans and $ 67 million to its postretirement plans .
during 2011 , the company contributed $ 517 million to its u.s .
and international pension plans and $ 65 million to its postretirement plans .
the current income tax provision includes a benefit for the pension contributions ; the deferred tax provision includes a cost for the related temporary difference .
reconciliation of effective income tax rate .

                                            | 2013             | 2012             | 2011
------------------------------------------- | ---------------- | ---------------- | ----------------
statutory u.s . tax rate                    | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % ) | 35.0% ( 35.0 % )
state income taxes - net of federal benefit | 0.9              | 0.9              | 0.7
international income taxes - net            | -6.3 ( 6.3 )     | -4.2 ( 4.2 )     | -4.6 ( 4.6 )
u.s . research and development credit       | -0.7 ( 0.7 )     | 2014             | -0.5 ( 0.5 )
reserves for tax contingencies              | 1.2              | -1.9 ( 1.9 )     | -1.2 ( 1.2 )
domestic manufacturer 2019s deduction       | -1.6 ( 1.6 )     | -1.2 ( 1.2 )     | -1.5 ( 1.5 )
all other - net                             | -0.4 ( 0.4 )     | 0.4              | -0.1 ( 0.1 )
effective worldwide tax rate                | 28.1% ( 28.1 % ) | 29.0% ( 29.0 % ) | 27.8% ( 27.8 % )

the effective tax rate for 2013 was 28.1 percent , compared to 29.0 percent in 2012 , a decrease of 0.9 percentage points , impacted by many factors .
factors that decreased the company 2019s effective tax rate included international taxes as a result of changes to the geographic mix of income before taxes , the reinstatement of the u.s .
research and development credit in 2013 , an increase in the domestic manufacturer 2019s deduction benefit , the restoration of tax basis on certain assets for which depreciation deductions were previously limited , and other items .
combined , these factors decreased the company 2019s effective tax rate by 4.0 percentage points .
this benefit was partially offset by factors that increased the effective tax rate by 3.1 percentage points , which largely related to adjustments to 3m 2019s income tax reserves for 2013 when compared to 2012 .
the effective tax rate for 2012 was 29.0 percent , compared to 27.8 percent in 2011 , an increase of 1.2 percentage points , impacted by many factors .
the primary factors that increased the company 2019s effective tax rate year-on-year include international taxes , specifically with respect to the corporate reorganization of a wholly owned international subsidiary ( which benefited 2011 ) , state income taxes , lower domestic manufacturer 2019s deduction , and the lapse of the u.s .
research and development credit .
these and other factors , when compared to 2011 , increased the 2012 effective tax rate by 2.1 percentage points .
factors that decreased the company 2019s effective tax rate year-on-year include international taxes as a result of changes to the geographic mix of income before taxes and adjustments to its income tax reserves .
these factors , when compared to 2011 , decreased the effective tax rate 0.9 percentage points .
the company files income tax returns in the u.s .
federal jurisdiction , and various states and foreign jurisdictions .
with few exceptions , the company is no longer subject to u.s .
federal , state and local , or non-u.s .
income tax examinations by tax authorities for years before 2004 .
the irs completed its field examination of the company 2019s u.s .
federal income tax returns for the years 2005 through 2007 in the fourth quarter of 2009 .
the company protested certain irs positions within these tax years and entered into the administrative appeals process with the irs during the first quarter of 2010 .
during the first quarter of 2010 , the irs completed its field examination of the company 2019s u.s .
federal income tax return for the 2008 year .
the company protested certain irs positions for 2008 and entered into the administrative appeals process with the irs during the second quarter of 2010 .
during the first quarter of 2011 , the irs completed its field examination of the company 2019s u.s .
federal income tax return for the 2009 year .
the company protested certain irs positions for 2009 and entered into the administrative appeals process with the irs during the second quarter of 2011 .
during the first quarter of 2012 , the irs completed its field examination of the company 2019s u.s .
federal income tax return for the 2010 year .
the company protested certain irs positions for 2010 and entered into the administrative appeals process with the irs during the


shares of citigroup common stock .
the number of shares to be delivered will equal the cse award value divided by the then fair market value of the common stock .
for cses awarded to certain employees whose compensation structure was approved by the special master , 50% ( 50 % ) of the shares to be delivered in april 2010 will be subject to restrictions on sale and transfer until january 20 , 2011 .
in lieu of 2010 cap awards , certain retirement-eligible employees were instead awarded cses payable in april 2010 , but any shares that are to be delivered in april 2010 ( subject to stockholder approval ) will be subject to restrictions on sale or transfer that will lapse in four equal annual installments beginning january 20 , 2011 .
cse awards have generally been accrued as compensation expenses in the year 2009 and will be recorded as a liability from the january 2010 grant date until the settlement date in april 2010 .
if stockholders approve delivery of citigroup stock for the cse awards , cse awards will likely be paid as new issues of common stock as an exception to the company 2019s practice of delivering shares from treasury stock , and the recorded liability will be reclassified as equity at that time .
in january 2009 , members of the management executive committee ( except the ceo and cfo ) received 30% ( 30 % ) of their incentive awards for 2008 as performance vesting-equity awards .
these awards vest 50% ( 50 % ) if the price of citigroup common stock meets a price target of $ 10.61 , and 50% ( 50 % ) for a price target of $ 17.85 , in each case on or prior to january 14 , 2013 .
the price target will be met only if the nyse closing price equals or exceeds the applicable price target for at least 20 nyse trading days within any period of 30 consecutive nyse trading days ending on or before january 14 , 2013 .
any shares that have not vested by such date will vest according to a fraction , the numerator of which is the share price on the delivery date and the denominator of which is the price target of the unvested shares .
no dividend equivalents are paid on unvested awards .
fair value of the awards is recognized as compensation expense ratably over the vesting period .
on july 17 , 2007 , the committee approved the management committee long-term incentive plan ( mc ltip ) ( pursuant to the terms of the shareholder-approved 1999 stock incentive plan ) under which participants received an equity award that could be earned based on citigroup 2019s performance against various metrics relative to peer companies and publicly- stated return on equity ( roe ) targets measured at the end of each calendar year beginning with 2007 .
the final expense for each of the three consecutive calendar years was adjusted based on the results of the roe tests .
no awards were earned for 2009 , 2008 or 2007 and no shares were issued because performance targets were not met .
no new awards were made under the mc ltip since the initial award in july 2007 .
cap participants in 2008 , 2007 , 2006 and 2005 , and fa cap participants in those years and in 2009 , could elect to receive all or part of their award in stock options .
the figures presented in the stock option program tables ( see 201cstock option programs 201d below ) include options granted in lieu of cap and fa cap stock awards in those years .
a summary of the status of citigroup 2019s unvested stock awards at december 31 , 2009 and changes during the 12 months ended december 31 , 2009 are presented below : unvested stock awards shares weighted-average grant date fair value .

unvested stock awards        | shares                   | weighted-average grant date fair value
---------------------------- | ------------------------ | --------------------------------------
unvested at january 1 2009   | 226210859                | $ 36.23
new awards                   | 162193923                | $ 4.35
cancelled awards             | -51873773 ( 51873773 )   | $ 26.59
deleted awards               | -568377 ( 568377 )       | $ 13.91
vested awards ( 1 )          | -148011884 ( 148011884 ) | $ 25.96
unvested at december 31 2009 | 187950748                | $ 19.53

( 1 ) the weighted-average market value of the vestings during 2009 was approximately $ 3.64 per share .
at december 31 , 2009 , there was $ 1.6 billion of total unrecognized compensation cost related to unvested stock awards net of the forfeiture provision .
that cost is expected to be recognized over a weighted-average period of 1.3 years.