for the years ended december 31 , 2007 , 2006 and 2005 , $ 0.5 million , $ 0.8 million and $ 1.4 million , respectively , of depreciation and amortization on assets under capital leases was included in depreciation and amortization expense .
sponsorships and other marketing commitments within the normal course of business , the company enters into contractual commitments in order to promote the company 2019s brand and products .
these commitments include sponsorship agreements with teams and athletes on the collegiate and professional levels , official supplier agreements , athletic event sponsorships and other marketing commitments .
the following is a schedule of the company 2019s future minimum payments under its sponsorship and other marketing agreements as of december 31 , 2007 : ( in thousands ) december 31 .

( in thousands )                                              | december 31 2007
------------------------------------------------------------- | ----------------
2008                                                          | $ 14684
2009                                                          | 14660
2010                                                          | 13110
2011                                                          | 10125
2012 and thereafter                                           | 1005
total future minimum sponsorship and other marketing payments | $ 53584

the amounts listed above are the minimum obligations required to be paid under the company 2019s sponsorship and other marketing agreements .
some of the these agreements provide for additional incentives based on performance achievements while wearing or using the company 2019s products and may also include product supply obligations over the terms of the agreements .
the company is , from time to time , involved in routine legal matters incidental to its business .
management believes that the ultimate resolution of any such current proceedings and claims will not have a material adverse effect on the company 2019s consolidated financial position , results of operations or cash flows .
certain key executives are party to agreements with the company that include severance benefits upon involuntary termination or change in ownership of the company .
8 .
stockholders 2019 equity in november 2005 , the company completed an initial public offering and issued an additional 9.5 million shares of common stock .
as part of the initial public offering , 1.2 million outstanding shares of convertible common stock held by rosewood entities were converted to class a common stock on a three-for-one basis .
the company received proceeds of $ 112.7 million net of $ 10.8 million in stock issue costs , which it used to repay the $ 25.0 million term note , the balance outstanding under the revolving credit facility of $ 12.2 million , and the series a preferred stock of $ 12.0 million .
as part of a recapitalization in connection with the initial public offering , the company 2019s stockholders approved an amended and restated charter that provides for the issuance of up to 100.0 million shares of class a common stock and 16.2 million shares of class b convertible common stock , par value $ 0.0003 1/3 per share , and permits amendments to the charter without stockholder approval to increase or decrease the aggregate number of shares of stock authorized , or the number of shares of stock of any class or series of stock authorized , and to classify or reclassify unissued shares of stock .
in conjunction with the initial public offering , 1.0 million shares of class b convertible common stock were converted into shares of class a common stock on a one-for-one basis in connection with a stock sale.


visa inc .
notes to consolidated financial statements 2014 ( continued ) september 30 , 2013 market condition is based on the company 2019s total shareholder return ranked against that of other companies that are included in the standard & poor 2019s 500 index .
the fair value of the performance- based shares , incorporating the market condition , is estimated on the grant date using a monte carlo simulation model .
the grant-date fair value of performance-based shares in fiscal 2013 , 2012 and 2011 was $ 164.14 , $ 97.84 and $ 85.05 per share , respectively .
earned performance shares granted in fiscal 2013 and 2012 vest approximately three years from the initial grant date .
earned performance shares granted in fiscal 2011 vest in two equal installments approximately two and three years from their respective grant dates .
all performance awards are subject to earlier vesting in full under certain conditions .
compensation cost for performance-based shares is initially estimated based on target performance .
it is recorded net of estimated forfeitures and adjusted as appropriate throughout the performance period .
at september 30 , 2013 , there was $ 15 million of total unrecognized compensation cost related to unvested performance-based shares , which is expected to be recognized over a weighted-average period of approximately 1.0 years .
note 17 2014commitments and contingencies commitments .
the company leases certain premises and equipment throughout the world with varying expiration dates .
the company incurred total rent expense of $ 94 million , $ 89 million and $ 76 million in fiscal 2013 , 2012 and 2011 , respectively .
future minimum payments on leases , and marketing and sponsorship agreements per fiscal year , at september 30 , 2013 , are as follows: .

( in millions )            | 2014  | 2015  | 2016  | 2017 | 2018 | thereafter | total
-------------------------- | ----- | ----- | ----- | ---- | ---- | ---------- | -----
operating leases           | $ 100 | $ 77  | $ 43  | $ 35 | $ 20 | $ 82       | $ 357
marketing and sponsorships | 116   | 117   | 61    | 54   | 54   | 178        | 580
total                      | $ 216 | $ 194 | $ 104 | $ 89 | $ 74 | $ 260      | $ 937

select sponsorship agreements require the company to spend certain minimum amounts for advertising and marketing promotion over the life of the contract .
for commitments where the individual years of spend are not specified in the contract , the company has estimated the timing of when these amounts will be spent .
in addition to the fixed payments stated above , select sponsorship agreements require the company to undertake marketing , promotional or other activities up to stated monetary values to support events which the company is sponsoring .
the stated monetary value of these activities typically represents the value in the marketplace , which may be significantly in excess of the actual costs incurred by the company .
client incentives .
the company has agreements with financial institution clients and other business partners for various programs designed to build payments volume , increase visa-branded card and product acceptance and win merchant routing transactions .
these agreements , with original terms ranging from one to thirteen years , can provide card issuance and/or conversion support , volume/growth targets and marketing and program support based on specific performance requirements .
these agreements are designed to encourage client business and to increase overall visa-branded payment and transaction volume , thereby reducing per-unit transaction processing costs and increasing brand awareness for all visa clients .
payments made that qualify for capitalization , and obligations incurred under these programs are reflected on the consolidated balance sheet .
client incentives are recognized primarily as a reduction


masco corporation notes to consolidated financial statements ( continued ) h .
goodwill and other intangible assets ( continued ) goodwill at december 31 , accumulated impairment losses goodwill at december 31 , 2010 additions ( a ) discontinued operations ( b ) pre-tax impairment charge other ( c ) goodwill at december 31 , cabinets and related products .
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$ 587 $ ( 364 ) $ 223 $ 2014 $ 2014 $ ( 44 ) $ 2 $ 181 .

                                  | gross goodwill at december 31 2010 | accumulated impairment losses | net goodwill at december 31 2010 | additions ( a ) | discontinued operations ( b ) | pre-tax impairment charge | other ( c ) | net goodwill at december 31 2011
--------------------------------- | ---------------------------------- | ----------------------------- | -------------------------------- | --------------- | ----------------------------- | ------------------------- | ----------- | --------------------------------
cabinets and related products     | $ 587                              | $ -364 ( 364 )                | $ 223                            | $ 2014          | $ 2014                        | $ -44 ( 44 )              | $ 2         | $ 181
plumbing products                 | 536                                | -340 ( 340 )                  | 196                              | 9               | 2014                          | 2014                      | -4 ( 4 )    | 201
installation and other services   | 1819                               | -762 ( 762 )                  | 1057                             | 2014            | -13 ( 13 )                    | 2014                      | 2014        | 1044
decorative architectural products | 294                                | 2014                          | 294                              | 2014            | 2014                          | -75 ( 75 )                | 2014        | 219
other specialty products          | 980                                | -367 ( 367 )                  | 613                              | 2014            | 2014                          | -367 ( 367 )              | 2014        | 246
total                             | $ 4216                             | $ -1833 ( 1833 )              | $ 2383                           | $ 9             | $ -13 ( 13 )                  | $ -486 ( 486 )            | $ -2 ( 2 )  | $ 1891

( a ) additions include acquisitions .
( b ) during 2011 , the company reclassified the goodwill related to the business units held for sale .
subsequent to the reclassification , the company recognized a charge for those business units expected to be divested at a loss ; the charge included a write-down of goodwill of $ 13 million .
( c ) other principally includes the effect of foreign currency translation and purchase price adjustments related to prior-year acquisitions .
in the fourth quarters of 2012 and 2011 , the company completed its annual impairment testing of goodwill and other indefinite-lived intangible assets .
the impairment test in 2012 indicated there was no impairment of goodwill for any of the company 2019s reporting units .
the impairment test in 2011 indicated that goodwill recorded for certain of the company 2019s reporting units was impaired .
the company recognized the non-cash , pre-tax impairment charges , in continuing operations , for goodwill of $ 486 million ( $ 330 million , after tax ) for 2011 .
in 2011 , the pre-tax impairment charge in the cabinets and related products segment relates to the european ready-to- assemble cabinet manufacturer and reflects the declining demand for certain products , as well as decreased operating margins .
the pre-tax impairment charge in the decorative architectural products segment relates to the builders 2019 hardware business and reflects increasing competitive conditions for that business .
the pre-tax impairment charge in the other specialty products segment relates to the north american window and door business and reflects the continuing weak level of new home construction activity in the western u.s. , the reduced levels of repair and remodel activity and the expectation that recovery in these segments will be modestly slower than anticipated .
the company then assessed the long-lived assets associated with these business units and determined no impairment was necessary at december 31 , 2011 .
other indefinite-lived intangible assets were $ 132 million and $ 174 million at december 31 , 2012 and 2011 , respectively , and principally included registered trademarks .
in 2012 and 2011 , the impairment test indicated that the registered trademark for a north american business unit in the other specialty products segment and the registered trademark for a north american business unit in the plumbing products segment ( 2011 only ) were impaired due to changes in the long-term outlook for the business units .
the company recognized non-cash , pre-tax impairment charges for other indefinite- lived intangible assets of $ 42 million ( $ 27 million , after tax ) and $ 8 million ( $ 5 million , after tax ) in 2012 and 2011 , respectively .
in 2010 , the company recognized non-cash , pre-tax impairment charges for other indefinite-lived intangible assets of $ 10 million ( $ 6 million after tax ) related to the installation and other services segment ( $ 9 million pre-tax ) and the plumbing products segment ( $ 1 million pre-tax ) .


notes to consolidated financial statements 2014 ( continued ) note 12 2014related party transactions in the course of settling money transfer transactions , we purchase foreign currency from consultoria internacional casa de cambio ( 201ccisa 201d ) , a mexican company partially owned by certain of our employees .
as of march 31 , 2008 , mr .
ra fal lim f3n cortes , a 10% ( 10 % ) shareholder of cisa , was no longer an employee , and we no longer considered cisa a related party .
we purchased 6.1 billion mexican pesos for $ 560.3 million during the ten months ended march 31 , 2008 and 8.1 billion mexican pesos for $ 736.0 million during fiscal 2007 from cisa .
we believe these currency transactions were executed at prevailing market exchange rates .
also from time to time , money transfer transactions are settled at destination facilities owned by cisa .
we incurred related settlement expenses , included in cost of service in the accompanying consolidated statements of income of $ 0.5 million in the ten months ended march 31 , 2008 .
in fiscal 2007 and 2006 , we incurred related settlement expenses , included in cost of service in the accompanying consolidated statements of income of $ 0.7 and $ 0.6 million , respectively .
in the normal course of business , we periodically utilize the services of contractors to provide software development services .
one of our employees , hired in april 2005 , is also an employee , officer , and part owner of a firm that provides such services .
the services provided by this firm primarily relate to software development in connection with our planned next generation front-end processing system in the united states .
during fiscal 2008 , we capitalized fees paid to this firm of $ 0.3 million .
as of may 31 , 2008 and 2007 , capitalized amounts paid to this firm of $ 4.9 million and $ 4.6 million , respectively , were included in property and equipment in the accompanying consolidated balance sheets .
in addition , we expensed amounts paid to this firm of $ 0.3 million , $ 0.1 million and $ 0.5 million in the years ended may 31 , 2008 , 2007 and 2006 , respectively .
note 13 2014commitments and contingencies leases we conduct a major part of our operations using leased facilities and equipment .
many of these leases have renewal and purchase options and provide that we pay the cost of property taxes , insurance and maintenance .
rent expense on all operating leases for fiscal 2008 , 2007 and 2006 was $ 30.4 million , $ 27.1 million , and $ 24.4 million , respectively .
future minimum lease payments for all noncancelable leases at may 31 , 2008 were as follows : operating leases .

                                    | operating leases
----------------------------------- | ----------------
2009                                | $ 22883
2010                                | 16359
2011                                | 11746
2012                                | 5277
2013                                | 3365
thereafter                          | 7816
total future minimum lease payments | $ 67446

we are party to a number of other claims and lawsuits incidental to our business .
in the opinion of management , the reasonably possible outcome of such matters , individually or in the aggregate , will not have a material adverse impact on our financial position , liquidity or results of operations.


american tower corporation and subsidiaries notes to consolidated financial statements u.s .
acquisitions 2014during the year ended december 31 , 2010 , the company acquired 548 towers through multiple acquisitions in the united states for an aggregate purchase price of $ 329.3 million and contingent consideration of approximately $ 4.6 million .
the acquisition of these towers is consistent with the company 2019s strategy to expand in selected geographic areas and have been accounted for as business combinations .
the following table summarizes the preliminary allocation of the aggregate purchase consideration paid and the amounts of assets acquired and liabilities assumed based on the estimated fair value of the acquired assets and assumed liabilities at the date of acquisition ( in thousands ) : purchase price allocation .

                                  | purchase price allocation
--------------------------------- | -------------------------
non-current assets                | $ 442
property and equipment            | 64564
intangible assets ( 1 )           | 260898
current liabilities               | -360 ( 360 )
long-term liabilities             | -7802 ( 7802 )
fair value of net assets acquired | $ 317742
goodwill ( 2 )                    | 16131

( 1 ) consists of customer relationships of approximately $ 205.4 million and network location intangibles of approximately $ 55.5 million .
the customer relationships and network location intangibles are being amortized on a straight-line basis over a period of 20 years .
( 2 ) goodwill is expected to be deductible for income tax purposes .
the goodwill was allocated to the domestic rental and management segment .
the allocation of the purchase price will be finalized upon completion of analyses of the fair value of the assets acquired and liabilities assumed .
south africa acquisition 2014on november 4 , 2010 , the company entered into a definitive agreement with cell c ( pty ) limited to purchase up to approximately 1400 existing towers , and up to 1800 additional towers that either are under construction or will be constructed , for an aggregate purchase price of up to approximately $ 430 million .
the company anticipates closing the purchase of up to 1400 existing towers during 2011 , subject to customary closing conditions .
other transactions coltel transaction 2014on september 3 , 2010 , the company entered into a definitive agreement to purchase the exclusive use rights for towers in colombia from colombia telecomunicaciones s.a .
e.s.p .
( 201ccoltel 201d ) until 2023 , when ownership of the towers will transfer to the company at no additional cost .
pursuant to that agreement , the company completed the purchase of exclusive use rights for 508 towers for an aggregate purchase price of $ 86.8 million during the year ended december 31 , 2010 .
the company expects to complete the purchase of the exclusive use rights for an additional 180 towers by the end of 2011 , subject to customary closing conditions .
the transaction has been accounted for as a capital lease , with the aggregated purchase price being allocated to property and equipment and non-current assets .
joint venture with mtn group 2014on december 6 , 2010 , the company entered into a definitive agreement with mtn group limited ( 201cmtn group 201d ) to establish a joint venture in ghana ( 201ctowerco ghana 201d ) .
towerco ghana , which will be managed by the company , will be owned by a holding company of which a wholly owned american tower subsidiary will hold a 51% ( 51 % ) share and a wholly owned mtn group subsidiary ( 201cmtn ghana 201d ) will hold a 49% ( 49 % ) share .
the transaction involves the sale of up to 1876 of mtn ghana 2019s existing sites to


operating lease agreements .
included in these amounts was contingent rent expense of $ 3.6 million , $ 2.0 million and $ 0.6 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively .
the operating lease obligations included above do not include any contingent rent .
sponsorships and other marketing commitments within the normal course of business , the company enters into contractual commitments in order to promote the company 2019s brand and products .
these commitments include sponsorship agreements with teams and athletes on the collegiate and professional levels , official supplier agreements , athletic event sponsorships and other marketing commitments .
the following is a schedule of the company 2019s future minimum payments under its sponsorship and other marketing agreements as of december 31 , 2011 : ( in thousands ) .

2012                                                          | $ 52855
------------------------------------------------------------- | --------
2013                                                          | 46910
2014                                                          | 42514
2015                                                          | 22689
2016                                                          | 3580
2017 and thereafter                                           | 966
total future minimum sponsorship and other marketing payments | $ 169514

the amounts listed above are the minimum obligations required to be paid under the company 2019s sponsorship and other marketing agreements .
the amounts listed above do not include additional performance incentives and product supply obligations provided under certain agreements .
it is not possible to determine how much the company will spend on product supply obligations on an annual basis as contracts generally do not stipulate specific cash amounts to be spent on products .
the amount of product provided to the sponsorships depends on many factors including general playing conditions , the number of sporting events in which they participate and the company 2019s decisions regarding product and marketing initiatives .
in addition , the costs to design , develop , source and purchase the products furnished to the endorsers are incurred over a period of time and are not necessarily tracked separately from similar costs incurred for products sold to customers .
the company is , from time to time , involved in routine legal matters incidental to its business .
the company believes that the ultimate resolution of any such current proceedings and claims will not have a material adverse effect on its consolidated financial position , results of operations or cash flows .
in connection with various contracts and agreements , the company has agreed to indemnify counterparties against certain third party claims relating to the infringement of intellectual property rights and other items .
generally , such indemnification obligations do not apply in situations in which the counterparties are grossly negligent , engage in willful misconduct , or act in bad faith .
based on the company 2019s historical experience and the estimated probability of future loss , the company has determined that the fair value of such indemnifications is not material to its consolidated financial position or results of operations .
9 .
stockholders 2019 equity the company 2019s class a common stock and class b convertible common stock have an authorized number of shares of 100.0 million shares and 11.3 million shares , respectively , and each have a par value of $ 0.0003 1/3 per share .
holders of class a common stock and class b convertible common stock have identical rights , including liquidation preferences , except that the holders of class a common stock are entitled to one vote per share and holders of class b convertible common stock are entitled to 10 votes per share on all matters submitted to a stockholder vote .
class b convertible common stock may only be held by kevin plank


american tower corporation and subsidiaries notes to consolidated financial statements recognizing customer revenue , the company must assess the collectability of both the amounts billed and the portion recognized on a straight-line basis .
this assessment takes customer credit risk and business and industry conditions into consideration to ultimately determine the collectability of the amounts billed .
to the extent the amounts , based on management 2019s estimates , may not be collectible , recognition is deferred until such point as the uncertainty is resolved .
any amounts which were previously recognized as revenue and subsequently determined to be uncollectible are charged to bad debt expense .
accounts receivable are reported net of allowances for doubtful accounts related to estimated losses resulting from a customer 2019s inability to make required payments and reserves for amounts invoiced whose collectability is not reasonably assured .
these allowances are generally estimated based on payment patterns , days past due and collection history , and incorporate changes in economic conditions that may not be reflected in historical trends , such as customers in bankruptcy , liquidation or reorganization .
receivables are written-off against the allowances when they are determined uncollectible .
such determination includes analysis and consideration of the particular conditions of the account .
changes in the allowances were as follows for the years ended december 31 , ( in thousands ) : .

                           | 2010             | 2009           | 2008
-------------------------- | ---------------- | -------------- | --------------
balance as of january 1,   | $ 28520          | $ 11482        | $ 8850
current year increases     | 16219            | 26771          | 12059
recoveries and other       | -22234 ( 22234 ) | -9733 ( 9733 ) | -9427 ( 9427 )
balance as of december 31, | $ 22505          | $ 28520        | $ 11482

the company 2019s largest international customer is iusacell , which is the brand name under which a group of companies controlled by grupo iusacell , s.a .
de c.v .
( 201cgrupo iusacell 201d ) operates .
iusacell represented approximately 4% ( 4 % ) of the company 2019s total revenue for the year ended december 31 , 2010 .
grupo iusacell has been engaged in a refinancing of a majority of its u.s .
dollar denominated debt , and in connection with this process , two of the legal entities of the group , including grupo iusacell , voluntarily filed for a pre-packaged concurso mercantil ( a process substantially equivalent to chapter 11 of u.s .
bankruptcy law ) with the backing of a majority of their financial creditors in december 2010 .
as of december 31 , 2010 , iusacell notes receivable , net , and related assets ( which include financing lease commitments and a deferred rent asset that are primarily long-term in nature ) were $ 19.7 million and $ 51.2 million , respectively .
functional currency 2014as a result of changes to the organizational structure of the company 2019s subsidiaries in latin america in 2010 , the company determined that effective january 1 , 2010 , the functional currency of its foreign subsidiary in brazil is the brazilian real .
from that point forward , all assets and liabilities held by the subsidiary in brazil are translated into u.s .
dollars at the exchange rate in effect at the end of the applicable reporting period .
revenues and expenses are translated at the average monthly exchange rates and the cumulative translation effect is included in stockholders 2019 equity .
the change in functional currency from u.s .
dollars to brazilian real gave rise to an increase in the net value of certain non-monetary assets and liabilities .
the aggregate impact on such assets and liabilities was $ 39.8 million with an offsetting increase in accumulated other comprehensive income ( loss ) .
as a result of the renegotiation of the company 2019s agreements with its largest international customer , iusacell , which included , among other changes , converting all of iusacell 2019s contractual obligations to the company from u.s .
dollars to mexican pesos , the company has determined that effective april 1 , 2010 , the functional currency of certain of its foreign subsidiaries in mexico is the mexican peso .
from that point forward , all assets and liabilities held by those subsidiaries in mexico are translated into u.s .
dollars at the exchange rate in effect at the end of the applicable reporting period .
revenues and expenses are translated at the average monthly exchange rates and the cumulative translation effect is included in stockholders 2019 equity .
the change in functional


on the credit rating of the company and a $ 200 million term loan with an interest rate of libor plus a margin of 175 basis points , both with maturity dates in 2017 .
the proceeds from these borrowings were used , along with available cash , to fund the acquisition of temple- inland .
during 2012 , international paper fully repaid the $ 1.2 billion term loan .
international paper utilizes interest rate swaps to change the mix of fixed and variable rate debt and manage interest expense .
at december 31 , 2012 , international paper had interest rate swaps with a total notional amount of $ 150 million and maturities in 2013 ( see note 14 derivatives and hedging activities on pages 70 through 74 of item 8 .
financial statements and supplementary data ) .
during 2012 , existing swaps and the amortization of deferred gains on previously terminated swaps decreased the weighted average cost of debt from 6.8% ( 6.8 % ) to an effective rate of 6.6% ( 6.6 % ) .
the inclusion of the offsetting interest income from short- term investments reduced this effective rate to 6.2% ( 6.2 % ) .
other financing activities during 2012 included the issuance of approximately 1.9 million shares of treasury stock , net of restricted stock withholding , and 1.0 million shares of common stock for various incentive plans , including stock options exercises that generated approximately $ 108 million of cash .
payment of restricted stock withholding taxes totaled $ 35 million .
off-balance sheet variable interest entities information concerning off-balance sheet variable interest entities is set forth in note 12 variable interest entities and preferred securities of subsidiaries on pages 67 through 69 of item 8 .
financial statements and supplementary data for discussion .
liquidity and capital resources outlook for 2015 capital expenditures and long-term debt international paper expects to be able to meet projected capital expenditures , service existing debt and meet working capital and dividend requirements during 2015 through current cash balances and cash from operations .
additionally , the company has existing credit facilities totaling $ 2.0 billion of which nothing has been used .
the company was in compliance with all its debt covenants at december 31 , 2014 .
the company 2019s financial covenants require the maintenance of a minimum net worth of $ 9 billion and a total debt-to- capital ratio of less than 60% ( 60 % ) .
net worth is defined as the sum of common stock , paid-in capital and retained earnings , less treasury stock plus any cumulative goodwill impairment charges .
the calculation also excludes accumulated other comprehensive income/ loss and nonrecourse financial liabilities of special purpose entities .
the total debt-to-capital ratio is defined as total debt divided by the sum of total debt plus net worth .
at december 31 , 2014 , international paper 2019s net worth was $ 14.0 billion , and the total-debt- to-capital ratio was 40% ( 40 % ) .
the company will continue to rely upon debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flows .
funding decisions will be guided by our capital structure planning objectives .
the primary goals of the company 2019s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense .
the majority of international paper 2019s debt is accessed through global public capital markets where we have a wide base of investors .
maintaining an investment grade credit rating is an important element of international paper 2019s financing strategy .
at december 31 , 2014 , the company held long-term credit ratings of bbb ( stable outlook ) and baa2 ( stable outlook ) by s&p and moody 2019s , respectively .
contractual obligations for future payments under existing debt and lease commitments and purchase obligations at december 31 , 2014 , were as follows: .

in millions                                 | 2015   | 2016   | 2017  | 2018   | 2019   | thereafter
------------------------------------------- | ------ | ------ | ----- | ------ | ------ | ----------
maturities of long-term debt ( a )          | $ 742  | $ 543  | $ 71  | $ 1229 | $ 605  | $ 6184
debt obligations with right of offset ( b ) | 2014   | 5202   | 2014  | 2014   | 2014   | 2014
lease obligations                           | 142    | 106    | 84    | 63     | 45     | 91
purchase obligations ( c )                  | 3266   | 761    | 583   | 463    | 422    | 1690
total ( d )                                 | $ 4150 | $ 6612 | $ 738 | $ 1755 | $ 1072 | $ 7965

( a ) total debt includes scheduled principal payments only .
( b ) represents debt obligations borrowed from non-consolidated variable interest entities for which international paper has , and intends to effect , a legal right to offset these obligations with investments held in the entities .
accordingly , in its consolidated balance sheet at december 31 , 2014 , international paper has offset approximately $ 5.2 billion of interests in the entities against this $ 5.3 billion of debt obligations held by the entities ( see note 12 variable interest entities and preferred securities of subsidiaries on pages 67 through 69 in item 8 .
financial statements and supplementary data ) .
( c ) includes $ 2.3 billion relating to fiber supply agreements entered into at the time of the 2006 transformation plan forestland sales and in conjunction with the 2008 acquisition of weyerhaeuser company 2019s containerboard , packaging and recycling business .
( d ) not included in the above table due to the uncertainty as to the amount and timing of the payment are unrecognized tax benefits of approximately $ 119 million .
as discussed in note 12 variable interest entities and preferred securities of subsidiaries on pages 67 through 69 in item 8 .
financial statements and supplementary data , in connection with the 2006 international paper installment sale of forestlands , we received $ 4.8 billion of installment notes ( or timber notes ) , which we contributed to certain non- consolidated borrower entities .
the installment notes mature in august 2016 ( unless extended ) .
the deferred


( 201cati 201d ) and spectrasite communications , llc ( 201cspectrasite 201d ) .
we conduct our international operations through our subsidiary , american tower international , inc. , which in turn conducts operations through its various international operating subsidiaries .
our international operations consist primarily of our operations in mexico and brazil , and also include operations in india , which we established in the second half of 2007 .
we operate in two business segments : rental and management and network development services .
for more information about our business segments , as well as financial information about the geographic areas in which we operate , see item 7 of this annual report under the caption 201cmanagement 2019s discussion and analysis of financial condition and results of operations 201d and note 18 to our consolidated financial statements included in this annual report .
products and services rental and management our primary business is our communications site leasing business , which we conduct through our rental and management segment .
this segment accounted for approximately 97% ( 97 % ) , 98% ( 98 % ) and 98% ( 98 % ) of our total revenues for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
our rental and management segment is comprised of our domestic and international site leasing business , including the operation of wireless communications towers , broadcast communications towers and das networks , as well as rooftop management .
wireless communications towers.we are a leading owner and operator of wireless communications towers in the united states , mexico and brazil , based on number of towers and revenue .
we also own and operate communications towers in india , where we commenced operations in the second half of 2007 .
in addition to owned wireless communications towers , we also manage wireless communications sites for property owners in the united states , mexico and brazil .
approximately 92% ( 92 % ) , 91% ( 91 % ) and 91% ( 91 % ) of our rental and management segment revenue was attributable to our wireless communications towers for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
as of december 31 , 2008 , our wireless communications tower portfolio included the following : country number of owned sites ( approx ) coverage area united states .
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19400 coverage spans 49 states and the district of columbia ; 90% ( 90 % ) of network provides coverage in the top 100 markets or core areas such as high traffic interstate corridors .
mexico .
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2500 coverage primarily concentrated in highly populated areas , including mexico city , monterrey , guadalajara and acapulco .
brazil .
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1100 coverage primarily concentrated in major metropolitan areas in central and southern brazil , including sao paulo , rio de janeiro , brasilia and curitiba .
india .
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200 initial-phase coverage ( operations established in the second half of 2007 ) .
we lease space on our wireless communications towers to customers in a diverse range of wireless industries , including personal communications services , cellular , enhanced specialized mobile radio , wimax .
paging and fixed microwave .
our major domestic wireless customers include at&t mobility , sprint nextel , verizon wireless ( which completed its merger with alltel in january 2009 ) and t-mobile usa .
our major international wireless customers include grupo iusacell ( iusacell celular and unefon in mexico ) , nextel international in mexico and brazil , telefonica ( movistar in mexico and vivo in brazil ) , america movil ( telcel in mexico and claro in brazil ) and telecom italia mobile ( tim ) in brazil .
for the year ended december 31 .

country       | number of owned sites ( approx ) | coverage area
------------- | -------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
united states | 19400                            | coverage spans 49 states and the district of columbia ; 90% ( 90 % ) of network provides coverage in the top 100 markets or core areas such as high traffic interstate corridors .
mexico        | 2500                             | coverage primarily concentrated in highly populated areas including mexico city monterrey guadalajara and acapulco .
brazil        | 1100                             | coverage primarily concentrated in major metropolitan areas in central and southern brazil including sao paulo rio de janeiro brasilia and curitiba .
india         | 200                              | initial-phase coverage ( operations established in the second half of 2007 ) .

( 201cati 201d ) and spectrasite communications , llc ( 201cspectrasite 201d ) .
we conduct our international operations through our subsidiary , american tower international , inc. , which in turn conducts operations through its various international operating subsidiaries .
our international operations consist primarily of our operations in mexico and brazil , and also include operations in india , which we established in the second half of 2007 .
we operate in two business segments : rental and management and network development services .
for more information about our business segments , as well as financial information about the geographic areas in which we operate , see item 7 of this annual report under the caption 201cmanagement 2019s discussion and analysis of financial condition and results of operations 201d and note 18 to our consolidated financial statements included in this annual report .
products and services rental and management our primary business is our communications site leasing business , which we conduct through our rental and management segment .
this segment accounted for approximately 97% ( 97 % ) , 98% ( 98 % ) and 98% ( 98 % ) of our total revenues for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
our rental and management segment is comprised of our domestic and international site leasing business , including the operation of wireless communications towers , broadcast communications towers and das networks , as well as rooftop management .
wireless communications towers.we are a leading owner and operator of wireless communications towers in the united states , mexico and brazil , based on number of towers and revenue .
we also own and operate communications towers in india , where we commenced operations in the second half of 2007 .
in addition to owned wireless communications towers , we also manage wireless communications sites for property owners in the united states , mexico and brazil .
approximately 92% ( 92 % ) , 91% ( 91 % ) and 91% ( 91 % ) of our rental and management segment revenue was attributable to our wireless communications towers for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
as of december 31 , 2008 , our wireless communications tower portfolio included the following : country number of owned sites ( approx ) coverage area united states .
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19400 coverage spans 49 states and the district of columbia ; 90% ( 90 % ) of network provides coverage in the top 100 markets or core areas such as high traffic interstate corridors .
mexico .
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2500 coverage primarily concentrated in highly populated areas , including mexico city , monterrey , guadalajara and acapulco .
brazil .
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1100 coverage primarily concentrated in major metropolitan areas in central and southern brazil , including sao paulo , rio de janeiro , brasilia and curitiba .
india .
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200 initial-phase coverage ( operations established in the second half of 2007 ) .
we lease space on our wireless communications towers to customers in a diverse range of wireless industries , including personal communications services , cellular , enhanced specialized mobile radio , wimax .
paging and fixed microwave .
our major domestic wireless customers include at&t mobility , sprint nextel , verizon wireless ( which completed its merger with alltel in january 2009 ) and t-mobile usa .
our major international wireless customers include grupo iusacell ( iusacell celular and unefon in mexico ) , nextel international in mexico and brazil , telefonica ( movistar in mexico and vivo in brazil ) , america movil ( telcel in mexico and claro in brazil ) and telecom italia mobile ( tim ) in brazil .
for the year ended december 31


course of business , we actively manage our exposure to these market risks by entering into various hedging transactions , authorized under established policies that place clear controls on these activities .
the counterparties in these transactions are generally highly rated institutions .
we establish credit limits for each counterparty .
our hedging transactions include but are not limited to a variety of derivative financial instruments .
for information on interest rate , foreign exchange , commodity price , and equity instrument risk , please see note 7 to the consolidated financial statements in item 8 of this report .
value at risk the estimates in the table below are intended to measure the maximum potential fair value we could lose in one day from adverse changes in market interest rates , foreign exchange rates , commodity prices , and equity prices under normal market conditions .
a monte carlo value-at-risk ( var ) methodology was used to quantify the market risk for our exposures .
the models assumed normal market conditions and used a 95 percent confidence level .
the var calculation used historical interest and foreign exchange rates , and commodity and equity prices from the past year to estimate the potential volatility and correlation of these rates in the future .
the market data were drawn from the riskmetrics 2122 data set .
the calculations are not intended to represent actual losses in fair value that we expect to incur .
further , since the hedging instrument ( the derivative ) inversely correlates with the underlying exposure , we would expect that any loss or gain in the fair value of our derivatives would be generally offset by an increase or decrease in the fair value of the underlying exposure .
the positions included in the calculations were : debt ; investments ; interest rate swaps ; foreign exchange forwards ; commodity swaps , futures , and options ; and equity instruments .
the calculations do not include the underlying foreign exchange and commodities or equity-related positions that are offset by these market-risk-sensitive instruments .
the table below presents the estimated maximum potential var arising from a one-day loss in fair value for our interest rate , foreign currency , commodity , and equity market-risk-sensitive instruments outstanding as of may 27 , 2018 and may 28 , 2017 , and the average fair value impact during the year ended may 27 , 2018. .

in millions                  | fair value impact may 27 2018 | fair value impact averageduringfiscal 2018 | fair value impact may 282017
---------------------------- | ----------------------------- | ------------------------------------------ | ----------------------------
interest rate instruments    | $ 33.2                        | $ 27.5                                     | $ 25.1
foreign currency instruments | 21.3                          | 23.1                                       | 24.6
commodity instruments        | 1.9                           | 2.1                                        | 3.2
equity instruments           | 2.0                           | 1.4                                        | 1.3


analog devices , inc .
notes to consolidated financial statements 2014 ( continued ) a summary of the company 2019s restricted stock unit award activity as of october 31 , 2015 and changes during the fiscal year then ended is presented below : restricted stock units outstanding ( in thousands ) weighted- average grant- date fair value per share .

                                                      | restrictedstock unitsoutstanding ( in thousands ) | weighted-average grant-date fair valueper share
----------------------------------------------------- | ------------------------------------------------- | -----------------------------------------------
restricted stock units outstanding at november 1 2014 | 3188                                              | $ 43.46
units granted                                         | 818                                               | $ 52.25
restrictions lapsed                                   | -1151 ( 1151 )                                    | $ 39.72
forfeited                                             | -157 ( 157 )                                      | $ 45.80
restricted stock units outstanding at october 31 2015 | 2698                                              | $ 47.59

as of october 31 , 2015 , there was $ 108.8 million of total unrecognized compensation cost related to unvested share- based awards comprised of stock options and restricted stock units .
that cost is expected to be recognized over a weighted- average period of 1.3 years .
the total grant-date fair value of shares that vested during fiscal 2015 , 2014 and 2013 was approximately $ 65.6 million , $ 57.4 million and $ 63.9 million , respectively .
common stock repurchase program the company 2019s common stock repurchase program has been in place since august 2004 .
in the aggregate , the board of directors have authorized the company to repurchase $ 5.6 billion of the company 2019s common stock under the program .
under the program , the company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions .
unless terminated earlier by resolution of the company 2019s board of directors , the repurchase program will expire when the company has repurchased all shares authorized under the program .
as of october 31 , 2015 , the company had repurchased a total of approximately 140.7 million shares of its common stock for approximately $ 5.0 billion under this program .
an additional $ 544.5 million remains available for repurchase of shares under the current authorized program .
the repurchased shares are held as authorized but unissued shares of common stock .
the company also , from time to time , repurchases shares in settlement of employee minimum tax withholding obligations due upon the vesting of restricted stock units or the exercise of stock options .
the withholding amount is based on the employees minimum statutory withholding requirement .
any future common stock repurchases will be dependent upon several factors , including the company's financial performance , outlook , liquidity and the amount of cash the company has available in the united states .
preferred stock the company has 471934 authorized shares of $ 1.00 par value preferred stock , none of which is issued or outstanding .
the board of directors is authorized to fix designations , relative rights , preferences and limitations on the preferred stock at the time of issuance .
4 .
industry , segment and geographic information the company operates and tracks its results in one reportable segment based on the aggregation of six operating segments .
the company designs , develops , manufactures and markets a broad range of integrated circuits ( ics ) .
the chief executive officer has been identified as the company's chief operating decision maker .
the company has determined that all of the company's operating segments share the following similar economic characteristics , and therefore meet the criteria established for operating segments to be aggregated into one reportable segment , namely : 2022 the primary source of revenue for each operating segment is the sale of integrated circuits .
2022 the integrated circuits sold by each of the company's operating segments are manufactured using similar semiconductor manufacturing processes and raw materials in either the company 2019s own production facilities or by third-party wafer fabricators using proprietary processes .
2022 the company sells its products to tens of thousands of customers worldwide .
many of these customers use products spanning all operating segments in a wide range of applications .
2022 the integrated circuits marketed by each of the company's operating segments are sold globally through a direct sales force , third-party distributors , independent sales representatives and via our website to the same types of customers .
all of the company's operating segments share a similar long-term financial model as they have similar economic characteristics .
the causes for variation in operating and financial performance are the same among the company's operating segments and include factors such as ( i ) life cycle and price and cost fluctuations , ( ii ) number of competitors , ( iii ) product


abiomed , inc .
and subsidiaries notes to consolidated financial statements 2014 ( continued ) note 10 .
commitments and contingencies the following is a description of the company 2019s significant arrangements in which the company is a guarantor .
indemnifications 2014in many sales transactions , the company indemnifies customers against possible claims of patent infringement caused by the company 2019s products .
the indemnifications contained within sales contracts usually do not include limits on the claims .
the company has never incurred any material costs to defend lawsuits or settle patent infringement claims related to sales transactions .
the company enters into agreements with other companies in the ordinary course of business , typically with underwriters , contractors , clinical sites and customers that include indemnification provisions .
under these provisions the company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of its activities .
these indemnification provisions generally survive termination of the underlying agreement .
the maximum potential amount of future payments the company could be required to make under these indemnification provisions is unlimited .
abiomed has never incurred any material costs to defend lawsuits or settle claims related to these indemnification agreements .
as a result , the estimated fair value of these agreements is immaterial .
accordingly , the company has no liabilities recorded for these agreements as of march 31 , 2012 .
clinical study agreements 2014in the company 2019s clinical study agreements , abiomed has agreed to indemnify the participating institutions against losses incurred by them for claims related to any personal injury of subjects taking part in the study to the extent they relate to uses of the company 2019s devices in accordance with the clinical study agreement , the protocol for the device and abiomed 2019s instructions .
the indemnification provisions contained within the company 2019s clinical study agreements do not generally include limits on the claims .
the company has never incurred any material costs related to the indemnification provisions contained in its clinical study agreements .
facilities leases 2014the company rents its danvers , massachusetts facility under an operating lease agreement that expires on february 28 , 2016 .
monthly rent under the facility lease is as follows : 2022 the base rent for november 2008 through june 2010 was $ 40000 per month ; 2022 the base rent for july 2010 through february 2014 is $ 64350 per month ; and 2022 the base rent for march 2014 through february 2016 will be $ 66000 per month .
in addition , the company has certain rights to terminate the facility lease early , subject to the payment of a specified termination fee based on the timing of the termination , as further outlined in the lease amendment .
the company has a lease for its european headquarters in aachen , germany .
the lease payments are approximately 36000 20ac ( euro ) ( approximately u.s .
$ 50000 at march 31 , 2012 exchange rates ) per month and the lease term expires in december 2012 .
in july 2008 , the company entered into a lease agreement providing for the lease of a 33000 square foot manufacturing facility in athlone , ireland .
the lease agreement was for a term of 25 years , commencing on july 18 , 2008 .
the company relocated the production equipment from its athlone , ireland manufacturing facility to its aachen and danvers facilities and fully vacated the athlone facility in the first quarter of fiscal 2011 .
in march 2011 , the company terminated the lease agreement and paid a termination fee of approximately $ 0.8 million as a result of the early termination of the lease .
total rent expense for the company 2019s operating leases included in the accompanying consolidated statements of operations approximated $ 1.6 million , $ 2.7 million and $ 2.2 million for the fiscal years ended march 31 , 2012 , 2011 , and 2010 , respectively .
future minimum lease payments under all significant non-cancelable operating leases as of march 31 , 2012 are approximately as follows : fiscal year ending march 31 , operating leases ( in $ 000s ) .

fiscal year ending march 31,        | operating leases ( in $ 000s )
----------------------------------- | ------------------------------
2013                                | 1473
2014                                | 964
2015                                | 863
2016                                | 758
2017                                | 32
thereafter                          | 128
total future minimum lease payments | $ 4218


note 6 : allowance for uncollectible accounts the following table provides the changes in the allowances for uncollectible accounts for the years ended december 31: .

                                  | 2018         | 2017         | 2016
--------------------------------- | ------------ | ------------ | ------------
balance as of january 1           | $ -42 ( 42 ) | $ -40 ( 40 ) | $ -39 ( 39 )
amounts charged to expense        | -33 ( 33 )   | -29 ( 29 )   | -27 ( 27 )
amounts written off               | 34           | 30           | 29
recoveries of amounts written off | -4 ( 4 )     | -3 ( 3 )     | -3 ( 3 )
balance as of december 31         | $ -45 ( 45 ) | $ -42 ( 42 ) | $ -40 ( 40 )

note 7 : regulatory assets and liabilities regulatory assets regulatory assets represent costs that are probable of recovery from customers in future rates .
the majority of the regulatory assets earn a return .
the following table provides the composition of regulatory assets as of december 31 : 2018 2017 deferred pension expense .
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$ 362 $ 285 removal costs recoverable through rates .
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292 269 regulatory balancing accounts .
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110 113 san clemente dam project costs .
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85 89 debt expense .
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70 67 purchase premium recoverable through rates .
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56 57 deferred tank painting costs .
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42 42 make-whole premium on early extinguishment of debt .
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33 27 other .
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106 112 total regulatory assets .
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$ 1156 $ 1061 the company 2019s deferred pension expense includes a portion of the underfunded status that is probable of recovery through rates in future periods of $ 352 million and $ 270 million as of december 31 , 2018 and 2017 , respectively .
the remaining portion is the pension expense in excess of the amount contributed to the pension plans which is deferred by certain subsidiaries and will be recovered in future service rates as contributions are made to the pension plan .
removal costs recoverable through rates represent costs incurred for removal of property , plant and equipment or other retirement costs .
regulatory balancing accounts accumulate differences between revenues recognized and authorized revenue requirements until they are collected from customers or are refunded .
regulatory balancing accounts include low income programs and purchased power and water accounts .
san clemente dam project costs represent costs incurred and deferred by the company 2019s utility subsidiary in california pursuant to its efforts to investigate alternatives and remove the dam due to potential earthquake and flood safety concerns .
in june 2012 , the california public utilities commission ( 201ccpuc 201d ) issued a decision authorizing implementation of a project to reroute the carmel river and remove the san clemente dam .
the project includes the company 2019s utility subsidiary in california , the california state conservancy and the national marine fisheries services .
under the order 2019s terms , the cpuc has authorized recovery for


restrictive covenants the terms of the 2017 credit facility and certain of our senior unsecured notes include certain restrictions and covenants which may limit , among other things , our ability to pay dividends , make certain types of investments , incur additional indebtedness , incur liens and enter into negative pledge agreements and dispose of assets , and which require compliance with financial ratios relating to the maximum ratio of total indebtedness to total asset value , a minimum ratio of ebitda to fixed charges , a maximum ratio of secured indebtedness to total asset value and a maximum ratio of unsecured indebtedness to unencumbered asset value .
the dividend restriction referred to above provides that , we will not during any time when a default is continuing , make distributions with respect to common stock or other equity interests , except to enable the company to continue to qualify as a reit for federal income tax purposes .
as of december a031 , 2017 and 2016 , we were in compliance with all such covenants .
junior subordinated deferrable interest debentures in june a02005 , the company and the operating partnership issued $ 100.0 a0million in unsecured trust preferred securities through a newly formed trust , sl a0green capital trust i , or the trust , which is a wholly-owned subsidiary of the operating partnership .
the securities mature in 2035 and bear interest at a floating rate of 125 a0basis points over the three-month libor .
interest payments may be deferred for a period of up to eight consecutive quarters if the operating partnership exercises its right to defer such payments .
the trust preferred securities are redeemable at the option of the operating partnership , in whole or in part , with no prepayment premium .
we do not consolidate the trust even though it is a variable interest entity as we are not the primary beneficiary .
because the trust is not consolidated , we have recorded the debt on our consolidated balance sheets and the related payments are classified as interest expense .
interest rate risk we are exposed to changes in interest rates primarily from our variable rate debt .
our exposure to interest rate fluctuations are managed through either the use of interest rate derivative instru- ments and/or through our variable rate debt and preferred equity investments .
a hypothetical 100 a0basis point increase in interest rates along the entire interest rate curve for a02017 would increase our consolidated annual interest cost , net of interest income from variable rate debt and preferred equity investments , by $ 2.7 a0mil- lion and would increase our share of joint venture annual interest cost by $ 17.2 a0million .
at december a031 , 2017 , 61.5% ( 61.5 % ) of our $ 2.1 a0bil- lion debt and preferred equity portfolio is indexed to libor .
we recognize most derivatives on the balance sheet at fair value .
derivatives that are not hedges are adjusted to fair value through income .
if a derivative is considered a hedge , depending on the nature of the hedge , changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset , liability , or firm commitment through earnings , or recog- nized in other comprehensive income until the hedged item is recognized in earnings .
the ineffective portion of a derivative 2019s change in fair value is immediately recognized in a0earnings .
our long-term debt of $ 4.3 a0billion bears interest at fixed rates , and therefore the fair value of these instruments is affected by changes in the market interest rates .
our variable rate debt and variable rate joint venture debt as of december a031 , 2017 bore interest based on a spread of libor plus 100 a0basis points to libor plus 415 a0basis points .
contractual obligations the combined aggregate principal maturities of mortgages and other loans payable , the 2017 credit facility , senior unsecured notes ( net of discount ) , trust preferred securities , our share of joint venture debt , including as-of-right extension options and put options , estimated interest expense , and our obligations under our capital lease and ground leases , as of december a031 , 2017 are as follows ( in a0thousands ) : .

                                   | 2018     | 2019      | 2020      | 2021     | 2022      | thereafter | total
---------------------------------- | -------- | --------- | --------- | -------- | --------- | ---------- | ----------
property mortgages and other loans | $ 153593 | $ 42289   | $ 703018  | $ 11656  | $ 208003  | $ 1656623  | $ 2775182
mra facilities                     | 90809    | 2014      | 2014      | 2014     | 2014      | 2014       | 90809
revolving credit facility          | 2014     | 2014      | 2014      | 2014     | 2014      | 40000      | 40000
unsecured term loans               | 2014     | 2014      | 2014      | 2014     | 2014      | 1500000    | 1500000
senior unsecured notes             | 250000   | 2014      | 250000    | 2014     | 800000    | 100000     | 1400000
trust preferred securities         | 2014     | 2014      | 2014      | 2014     | 2014      | 100000     | 100000
capital lease                      | 2387     | 2411      | 2620      | 2794     | 2794      | 819894     | 832900
ground leases                      | 31049    | 31066     | 31436     | 31628    | 29472     | 703254     | 857905
estimated interest expense         | 226815   | 218019    | 184376    | 163648   | 155398    | 281694     | 1229950
joint venture debt                 | 200250   | 717682    | 473809    | 449740   | 223330    | 2119481    | 4184292
total                              | $ 954903 | $ 1011467 | $ 1645259 | $ 659466 | $ 1418997 | $ 7320946  | $ 13011038


as of december 31 , 2013 and 2012 , our liabilities associated with unrecognized tax benefits are not material .
we and our subsidiaries file income tax returns in the u.s .
federal jurisdiction and various foreign jurisdictions .
with few exceptions , the statute of limitations is no longer open for u.s .
federal or non-u.s .
income tax examinations for the years before 2010 , other than with respect to refunds .
u.s .
income taxes and foreign withholding taxes have not been provided on earnings of $ 222 million , $ 211 million , and $ 193 million that have not been distributed by our non-u.s .
companies as of december 31 , 2013 , 2012 , and 2011 .
our intention is to permanently reinvest these earnings , thereby indefinitely postponing their remittance to the u.s .
if these earnings were remitted , we estimate that the additional income taxes after foreign tax credits would have been approximately $ 50 million in 2013 , $ 45 million in 2012 , and $ 41 million in 2011 .
our federal and foreign income tax payments , net of refunds received , were $ 787 million in 2013 , $ 890 million in 2012 , and $ 722 million in 2011 .
our 2013 net payments reflect a $ 550 million refund from the irs primarily attributable to our tax-deductible discretionary pension contributions during the fourth quarter of 2012 ; our 2012 net payments reflect a $ 153 million refund from the irs related to a 2011 capital loss carryback claim ; and our 2011 net payments reflect a $ 250 million refund from the irs related to estimated taxes paid for 2010 .
as of december 31 , 2013 and 2012 , we had federal and foreign taxes receivable of $ 313 million and $ 662 million recorded within other current assets on our balance sheet , primarily attributable to our tax-deductible discretionary pension contributions in the fourth quarter of 2013 and 2012 and our debt exchange transaction in the fourth quarter of 2012 .
note 9 2013 debt our long-term debt consisted of the following ( in millions ) : .

                                                                            | 2013         | 2012
--------------------------------------------------------------------------- | ------------ | ------------
notes with rates from 2.13% ( 2.13 % ) to 6.15% ( 6.15 % ) due 2016 to 2042 | $ 5642       | $ 5642
notes with rates from 7.00% ( 7.00 % ) to 7.75% ( 7.75 % ) due 2016 to 2036 | 916          | 930
notes with a rate of 7.38% ( 7.38 % ) due 2013                              | 2014         | 150
other debt                                                                  | 476          | 478
total long-term debt                                                        | 7034         | 7200
less : unamortized discounts                                                | -882 ( 882 ) | -892 ( 892 )
total long-term debt net of unamortized discounts                           | 6152         | 6308
less : current maturities of long-term debt                                 | 2014         | -150 ( 150 )
total long-term debt net                                                    | $ 6152       | $ 6158

in december 2012 , we issued notes totaling $ 1.3 billion with a fixed interest rate of 4.07% ( 4.07 % ) maturing in december 2042 ( the new notes ) in exchange for outstanding notes totaling $ 1.2 billion with interest rates ranging from 5.50% ( 5.50 % ) to 8.50% ( 8.50 % ) maturing in 2023 to 2040 ( the old notes ) .
in connection with the exchange , we paid a premium of $ 393 million , of which $ 225 million was paid in cash and $ 168 million was in the form of new notes .
this premium , in addition to $ 194 million in remaining unamortized discounts related to the old notes , will be amortized as additional interest expense over the term of the new notes using the effective interest method .
we may , at our option , redeem some or all of the new notes at any time by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest .
interest on the new notes is payable on june 15 and december 15 of each year , beginning on june 15 , 2013 .
the new notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness .
in september 2011 , we issued $ 2.0 billion of long-term notes in a registered public offering and in october 2011 , we used a portion of the proceeds to redeem all of our $ 500 million long-term notes maturing in 2013 .
in 2011 , we repurchased $ 84 million of our long-term notes through open-market purchases .
we paid premiums of $ 48 million in connection with the early extinguishments of debt , which were recognized in other non-operating income ( expense ) , net .
at december 31 , 2013 and 2012 , we had in place with a group of banks a $ 1.5 billion revolving credit facility that expires in august 2016 .
we may request and the banks may grant , at their discretion , an increase to the credit facility by an additional amount up to $ 500 million .
there were no borrowings outstanding under the credit facility through december 31 , 2013 .
borrowings under the credit facility would be unsecured and bear interest at rates based , at our option , on a eurodollar rate or a base rate , as defined in the credit facility .
each bank 2019s obligation to make loans under the credit facility is subject


the liabilities recognized as a result of consolidating these entities do not represent additional claims on the general assets of the company .
the creditors of these entities have claims only on the assets of the specific variable interest entities to which they have advanced credit .
obligations and commitments as part of its ongoing operations , the company enters into arrangements that obligate the company to make future payments under contracts such as debt agreements , lease agreements , and unconditional purchase obligations ( i.e. , obligations to transfer funds in the future for fixed or minimum quantities of goods or services at fixed or minimum prices , such as 201ctake-or-pay 201d contracts ) .
the unconditional purchase obligation arrangements are entered into by the company in its normal course of business in order to ensure adequate levels of sourced product are available to the company .
capital lease and debt obligations , which totaled $ 3.5 billion at may 25 , 2008 , are currently recognized as liabilities in the company 2019s consolidated balance sheet .
operating lease obligations and unconditional purchase obligations , which totaled $ 1.7 billion at may 25 , 2008 , are not recognized as liabilities in the company 2019s consolidated balance sheet , in accordance with generally accepted accounting principles .
a summary of the company 2019s contractual obligations at the end of fiscal 2008 was as follows ( including obligations of discontinued operations ) : .

( $ in millions ) contractual obligations | ( $ in millions ) total | ( $ in millions ) less than 1 year | ( $ in millions ) 1-3 years | ( $ in millions ) 3-5 years | after 5 years
----------------------------------------- | ----------------------- | ---------------------------------- | --------------------------- | --------------------------- | -------------
long-term debt                            | $ 3531.4                | $ 15.4                             | $ 521.6                     | $ 751.8                     | $ 2242.6
lease obligations                         | 514.9                   | 89.2                               | 148.1                       | 106.9                       | 170.7
purchase obligations                      | 1199.6                  | 1078.6                             | 104.0                       | 16.3                        | 0.7
total                                     | $ 5245.9                | $ 1183.2                           | $ 773.7                     | $ 875.0                     | $ 2414.0

the purchase obligations noted in the table above do not reflect approximately $ 374 million of open purchase orders , some of which are not legally binding .
these purchase orders are settlable in the ordinary course of business in less than one year .
the company is also contractually obligated to pay interest on its long-term debt obligations .
the weighted average interest rate of the long-term debt obligations outstanding as of may 25 , 2008 was approximately 7.2% ( 7.2 % ) .
the company consolidates the assets and liabilities of certain entities from which it leases corporate aircraft .
these entities have been determined to be variable interest entities and the company has been determined to be the primary beneficiary of these entities .
the amounts reflected in contractual obligations of long-term debt , in the table above , include $ 54 million of liabilities of these variable interest entities to the creditors of such entities .
the long-term debt recognized as a result of consolidating these entities does not represent additional claims on the general assets of the company .
the creditors of these entities have claims only on the assets of the specific variable interest entities .
as of may 25 , 2008 , the company was obligated to make rental payments of $ 67 million to the variable interest entities , of which $ 7 million is due in less than one year , $ 13 million is due in one to three years , and $ 47 million is due in three to five years .
such amounts are not reflected in the table , above .
as part of its ongoing operations , the company also enters into arrangements that obligate the company to make future cash payments only upon the occurrence of a future event ( e.g. , guarantee debt or lease payments of a third party should the third party be unable to perform ) .
in accordance with generally accepted accounting principles , the following commercial commitments are not recognized as liabilities in the company 2019s


foodservice sales volumes increased in 2012 compared with 2011 .
average sales margins were higher reflecting the realization of sales price increases for the pass-through of earlier cost increases .
raw material costs for board and resins were lower .
operating costs and distribution costs were both higher .
the u.s .
shorewood business was sold december 31 , 2011 and the non-u.s .
business was sold in january looking ahead to the first quarter of 2013 , coated paperboard sales volumes are expected to increase slightly from the fourth quarter of 2012 .
average sales price realizations are expected to be slightly lower , but margins should benefit from a more favorable product mix .
input costs are expected to be higher for energy and wood .
no planned main- tenance outages are scheduled in the first quarter .
in january 2013 the company announced the perma- nent shutdown of a coated paperboard machine at the augusta mill with an annual capacity of 140000 tons .
foodservice sales volumes are expected to increase .
average sales margins are expected to decrease due to the realization of sales price decreases effective with our january contract open- ers .
input costs for board and resin are expected to be lower and operating costs are also expected to decrease .
european consumer packaging net sales in 2012 were $ 380 million compared with $ 375 million in 2011 and $ 345 million in 2010 .
operating profits in 2012 were $ 99 million compared with $ 93 million in 2011 and $ 76 million in 2010 .
sales volumes in 2012 increased from 2011 .
average sales price realizations were higher in russian markets , but were lower in european markets .
input costs decreased , primarily for wood , and planned maintenance downtime costs were lower in 2012 than in 2011 .
looking forward to the first quarter of 2013 , sales volumes are expected to decrease in both europe and russia .
average sales price realizations are expected to be higher in russia , but be more than offset by decreases in europe .
input costs are expected to increase for wood and chemicals .
no maintenance outages are scheduled for the first quarter .
asian consumer packaging net sales were $ 830 million in 2012 compared with $ 855 million in 2011 and $ 705 million in 2010 .
operating profits in 2012 were $ 4 million compared with $ 35 million in 2011 and $ 34 million in 2010 .
sales volumes increased in 2012 compared with 2011 partially due to the start-up of a new coated paperboard machine .
average sales price realizations were significantly lower , but were partially offset by lower input costs for purchased pulp .
start-up costs for a new coated paperboard machine adversely impacted operating profits in 2012 .
in the first quarter of 2013 , sales volumes are expected to increase slightly .
average sales price realizations for folding carton board and bristols board are expected to be lower reflecting increased competitive pressures and seasonally weaker market demand .
input costs should be higher for pulp and chemicals .
however , costs related to the ramp-up of the new coated paperboard machine should be lower .
distribution xpedx , our distribution business , is one of north america 2019s leading business-to-business distributors to manufacturers , facility managers and printers , providing customized solutions that are designed to improve efficiency , reduce costs and deliver results .
customer demand is generally sensitive to changes in economic conditions and consumer behavior , along with segment specific activity including corpo- rate advertising and promotional spending , government spending and domestic manufacturing activity .
distribution 2019s margins are relatively stable across an economic cycle .
providing customers with the best choice for value in both products and supply chain services is a key competitive factor .
addition- ally , efficient customer service , cost-effective logis- tics and focused working capital management are key factors in this segment 2019s profitability .
distribution .

in millions      | 2012   | 2011   | 2010
---------------- | ------ | ------ | ------
sales            | $ 6040 | $ 6630 | $ 6735
operating profit | 22     | 34     | 78

distr ibut ion 2019s 2012 annual sales decreased 9% ( 9 % ) from 2011 , and decreased 10% ( 10 % ) from 2010 .
operating profits in 2012 were $ 22 million ( $ 71 million exclud- ing reorganization costs ) compared with $ 34 million ( $ 86 million excluding reorganization costs ) in 2011 and $ 78 million in 2010 .
annual sales of printing papers and graphic arts supplies and equipment totaled $ 3.5 billion in 2012 compared with $ 4.0 billion in 2011 and $ 4.2 billion in 2010 , reflecting declining demand and the exiting of unprofitable businesses .
trade margins as a percent of sales for printing papers were relatively even with both 2011 and 2010 .
revenue from packaging prod- ucts was flat at $ 1.6 billion in both 2012 and 2011 and up slightly compared to $ 1.5 billion in 2010 .
pack- aging margins increased in 2012 from both 2011 and 2010 , reflecting the successful execution of strategic sourcing initiatives .
facility supplies annual revenue was $ 0.9 billion in 2012 , down compared to $ 1.0 bil- lion in 2011 and 2010 .
operating profits in 2012 included $ 49 million of reorganization costs for severance , professional services and asset write-downs compared with $ 52


host hotels & resorts , inc. , host hotels & resorts , l.p. , and subsidiaries notes to consolidated financial statements 2014 ( continued ) cash paid for income taxes , net of refunds received , was $ 40 million , $ 15 million , and $ 9 million in 2017 , 2016 , and 2015 , respectively .
a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows ( in millions ) : .

                       | 2017 | 2016
---------------------- | ---- | ----
balance at january 1   | $ 11 | $ 11
balance at december 31 | $ 11 | $ 11

all of such uncertain tax position amounts , if recognized , would impact our reconciliation between the income tax provision calculated at the statutory u.s .
federal income tax rate of 35% ( 35 % ) ( 21% ( 21 % ) beginning with calendar year 2018 ) and the actual income tax provision recorded each year .
as of december 31 , 2017 , the tax years that remain subject to examination by major tax jurisdictions generally include 2014-2017 .
there were no material interest or penalties recorded for the years ended december 31 , 2017 , 2016 , and 2015 .
7 .
leases taxable reit subsidiaries leases we lease substantially all of our hotels to a wholly owned subsidiary that qualifies as a taxable reit subsidiary due to federal income tax restrictions on a reit 2019s ability to derive revenue directly from the operation and management of a hotel .
ground leases as of december 31 , 2017 , all or a portion of 26 of our hotels are subject to ground leases , generally with multiple renewal options , all of which are accounted for as operating leases .
for lease agreements with scheduled rent increases , we recognize the lease expense ratably over the term of the lease .
certain of these leases contain provisions for the payment of contingent rentals based on a percentage of sales in excess of stipulated amounts .
other lease information we also have leases on facilities used in our former restaurant business , all of which we subsequently subleased .
these leases and subleases contain one or more renewal options , generally for five- or ten-year periods .
the restaurant leases are accounted for as operating leases .
our contingent liability related to these leases is $ 9 million as of december 31 , 2017 .
we , however , consider the likelihood of any material funding related to these leases to be remote .
our leasing activity also includes those entered into by our hotels for various types of equipment , such as computer equipment , vehicles and telephone systems .
equipment leases are accounted for either as operating or capital leases , depending upon the characteristics of the particular lease arrangement .
equipment leases that are characterized as capital leases are classified as furniture and equipment and are depreciated over the life of the lease .
the amortization expense applicable to capitalized leases is included in depreciation expense.


morgan stanley notes to consolidated financial statements 2014 ( continued ) senior debt securities often are denominated in various non-u.s .
dollar currencies and may be structured to provide a return that is equity-linked , credit-linked , commodity-linked or linked to some other index ( e.g. , the consumer price index ) .
senior debt also may be structured to be callable by the company or extendible at the option of holders of the senior debt securities .
debt containing provisions that effectively allow the holders to put or extend the notes aggregated $ 2902 million at december 31 , 2015 and $ 2175 million at december 31 , 2014 .
in addition , in certain circumstances , certain purchasers may be entitled to cause the repurchase of the notes .
the aggregated value of notes subject to these arrangements was $ 650 million at december 31 , 2015 and $ 551 million at december 31 , 2014 .
subordinated debt and junior subordinated debentures generally are issued to meet the capital requirements of the company or its regulated subsidiaries and primarily are u.s .
dollar denominated .
during 2015 , morgan stanley capital trusts vi and vii redeemed all of their issued and outstanding 6.60% ( 6.60 % ) capital securities , respectively , and the company concurrently redeemed the related underlying junior subordinated debentures .
senior debt 2014structured borrowings .
the company 2019s index-linked , equity-linked or credit-linked borrowings include various structured instruments whose payments and redemption values are linked to the performance of a specific index ( e.g. , standard & poor 2019s 500 ) , a basket of stocks , a specific equity security , a credit exposure or basket of credit exposures .
to minimize the exposure resulting from movements in the underlying index , equity , credit or other position , the company has entered into various swap contracts and purchased options that effectively convert the borrowing costs into floating rates based upon libor .
the company generally carries the entire structured borrowings at fair value .
the swaps and purchased options used to economically hedge the embedded features are derivatives and also are carried at fair value .
changes in fair value related to the notes and economic hedges are reported in trading revenues .
see note 3 for further information on structured borrowings .
subordinated debt and junior subordinated debentures .
included in the long-term borrowings are subordinated notes of $ 10404 million having a contractual weighted average coupon of 4.45% ( 4.45 % ) at december 31 , 2015 and $ 8339 million having a contractual weighted average coupon of 4.57% ( 4.57 % ) at december 31 , 2014 .
junior subordinated debentures outstanding by the company were $ 2870 million at december 31 , 2015 having a contractual weighted average coupon of 6.22% ( 6.22 % ) at december 31 , 2015 and $ 4868 million at december 31 , 2014 having a contractual weighted average coupon of 6.37% ( 6.37 % ) at december 31 , 2014 .
maturities of the subordinated and junior subordinated notes range from 2022 to 2067 , while maturities of certain junior subordinated debentures can be extended to 2052 at the company 2019s option .
asset and liability management .
in general , securities inventories that are not financed by secured funding sources and the majority of the company 2019s assets are financed with a combination of deposits , short-term funding , floating rate long-term debt or fixed rate long-term debt swapped to a floating rate .
fixed assets are generally financed with fixed rate long-term debt .
the company uses interest rate swaps to more closely match these borrowings to the duration , holding period and interest rate characteristics of the assets being funded and to manage interest rate risk .
these swaps effectively convert certain of the company 2019s fixed rate borrowings into floating rate obligations .
in addition , for non-u.s .
dollar currency borrowings that are not used to fund assets in the same currency , the company has entered into currency swaps that effectively convert the borrowings into u.s .
dollar obligations .
the company 2019s use of swaps for asset and liability management affected its effective average borrowing rate .
effective average borrowing rate. .

                                                                                | 2015           | 2014           | 2013
----------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
weighted average coupon of long-term borrowings at period-end ( 1 )                       | 4.0% ( 4.0 % ) | 4.2% ( 4.2 % ) | 4.4% ( 4.4 % )
effective average borrowing rate for long-term borrowings after swaps at period-end ( 1 ) | 2.1% ( 2.1 % ) | 2.3% ( 2.3 % ) | 2.2% ( 2.2 % )


russia and europe .
average sales price realizations for uncoated freesheet paper decreased in both europe and russia , reflecting weak economic conditions and soft market demand .
in russia , sales prices in rubles increased , but this improvement is masked by the impact of the currency depreciation against the u.s .
dollar .
input costs were significantly higher for wood in both europe and russia , partially offset by lower chemical costs .
planned maintenance downtime costs were $ 11 million lower in 2014 than in 2013 .
manufacturing and other operating costs were favorable .
entering 2015 , sales volumes in the first quarter are expected to be seasonally weaker in russia , and about flat in europe .
average sales price realizations for uncoated freesheet paper are expected to remain steady in europe , but increase in russia .
input costs should be lower for oil and wood , partially offset by higher chemicals costs .
indian papers net sales were $ 178 million in 2014 , $ 185 million ( $ 174 million excluding excise duties which were included in net sales in 2013 and prior periods ) in 2013 and $ 185 million ( $ 178 million excluding excise duties ) in 2012 .
operating profits were $ 8 million ( a loss of $ 12 million excluding a gain related to the resolution of a legal contingency ) in 2014 , a loss of $ 145 million ( a loss of $ 22 million excluding goodwill and trade name impairment charges ) in 2013 and a loss of $ 16 million in 2012 .
average sales price realizations improved in 2014 compared with 2013 due to the impact of price increases implemented in 2013 .
sales volumes were flat , reflecting weak economic conditions .
input costs were higher , primarily for wood .
operating costs and planned maintenance downtime costs were lower in 2014 .
looking ahead to the first quarter of 2015 , sales volumes are expected to be seasonally higher .
average sales price realizations are expected to decrease due to competitive pressures .
asian printing papers net sales were $ 59 million in 2014 , $ 90 million in 2013 and $ 85 million in 2012 .
operating profits were $ 0 million in 2014 and $ 1 million in both 2013 and 2012 .
u.s .
pulp net sales were $ 895 million in 2014 compared with $ 815 million in 2013 and $ 725 million in 2012 .
operating profits were $ 57 million in 2014 compared with $ 2 million in 2013 and a loss of $ 59 million in 2012 .
sales volumes in 2014 increased from 2013 for both fluff pulp and market pulp reflecting improved market demand .
average sales price realizations increased significantly for fluff pulp , while prices for market pulp were also higher .
input costs for wood and energy were higher .
operating costs were lower , but planned maintenance downtime costs were $ 1 million higher .
compared with the fourth quarter of 2014 , sales volumes in the first quarter of 2015 , are expected to decrease for market pulp , but be slightly higher for fluff pulp .
average sales price realizations are expected to to be stable for fluff pulp and softwood market pulp , while hardwood market pulp prices are expected to improve .
input costs should be flat .
planned maintenance downtime costs should be about $ 13 million higher than in the fourth quarter of 2014 .
consumer packaging demand and pricing for consumer packaging products correlate closely with consumer spending and general economic activity .
in addition to prices and volumes , major factors affecting the profitability of consumer packaging are raw material and energy costs , freight costs , manufacturing efficiency and product mix .
consumer packaging net sales in 2014 decreased 1% ( 1 % ) from 2013 , but increased 7% ( 7 % ) from 2012 .
operating profits increased 11% ( 11 % ) from 2013 , but decreased 34% ( 34 % ) from 2012 .
excluding sheet plant closure costs , costs associated with the permanent shutdown of a paper machine at our augusta , georgia mill and costs related to the sale of the shorewood business , 2014 operating profits were 11% ( 11 % ) lower than in 2013 , and 30% ( 30 % ) lower than in 2012 .
benefits from higher average sales price realizations and a favorable mix ( $ 60 million ) were offset by lower sales volumes ( $ 11 million ) , higher operating costs ( $ 9 million ) , higher planned maintenance downtime costs ( $ 12 million ) , higher input costs ( $ 43 million ) and higher other costs ( $ 7 million ) .
in addition , operating profits in 2014 include $ 8 million of costs associated with sheet plant closures , while operating profits in 2013 include costs of $ 45 million related to the permanent shutdown of a paper machine at our augusta , georgia mill and $ 2 million of costs associated with the sale of the shorewood business .
consumer packaging .

in millions      | 2014   | 2013   | 2012
---------------- | ------ | ------ | ------
sales            | $ 3403 | $ 3435 | $ 3170
operating profit | 178    | 161    | 268

north american consumer packaging net sales were $ 2.0 billion in 2014 compared with $ 2.0 billion in 2013 and $ 2.0 billion in 2012 .
operating profits were $ 92 million ( $ 100 million excluding sheet plant closure costs ) in 2014 compared with $ 63 million ( $ 110 million excluding paper machine shutdown costs and costs related to the sale of the shorewood business ) in 2013 and $ 165 million ( $ 162 million excluding a gain associated with the sale of the shorewood business in 2012 ) .
coated paperboard sales volumes in 2014 were lower than in 2013 reflecting weaker market demand .
the business took about 41000 tons of market-related downtime in 2014 compared with about 24000 tons in 2013 .
average sales price realizations increased year-