american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) stock-based compensation 2014the company complies with the provisions of sfas no .
148 , 201caccounting for stock-based compensation 2014transition and disclosure 2014an amendment of sfas no .
123 , 201d which provides optional transition guidance for those companies electing to voluntarily adopt the accounting provisions of sfas no .
123 .
the company continues to use accounting principles board opinion no .
25 ( apb no .
25 ) , 201caccounting for stock issued to employees , 201d to account for equity grants and awards to employees , officers and directors and has adopted the disclosure-only provisions of sfas no .
148 .
in accordance with apb no .
25 , the company recognizes compensation expense based on the excess , if any , of the quoted stock price at the grant date of the award or other measurement date over the amount an employee must pay to acquire the stock .
the company 2019s stock option plans are more fully described in note 13 .
in december 2004 , the fasb issued sfas no .
123r , 201cshare-based payment 201d ( sfas no .
123r ) , described below .
the following table illustrates the effect on net loss and net loss per share if the company had applied the fair value recognition provisions of sfas no .
123 ( as amended ) to stock-based compensation .
the estimated fair value of each option is calculated using the black-scholes option-pricing model ( in thousands , except per share amounts ) : .

                                                                                | 2004                 | 2003                 | 2002
--------------------------------------------------------------------------------------------------------------------------------------- | -------------------- | -------------------- | ----------------------
net loss as reported                                                                                | $ -247587 ( 247587 ) | $ -325321 ( 325321 ) | $ -1163540 ( 1163540 )
add : stock-based employee compensation expense associated with modifications net of related tax effect included in net loss asreported | 2297                 | 2077                 |
less : total stock-based employee compensation expense determined under fair value based method for all awards net of related taxeffect | -23906 ( 23906 )     | -31156 ( 31156 )     | -38126 ( 38126 )
pro-forma net loss                                                                                | $ -269196 ( 269196 ) | $ -354400 ( 354400 ) | $ -1201666 ( 1201666 )
basic and diluted net loss per share 2014as reported                                                                                | $ -1.10 ( 1.10 )     | $ -1.56 ( 1.56 )     | $ -5.95 ( 5.95 )
basic and diluted net loss per share pro-forma                                                                                | $ -1.20 ( 1.20 )     | $ -1.70 ( 1.70 )     | $ -6.15 ( 6.15 )

during the year ended december 31 , 2004 and 2003 , the company modified certain option awards to accelerate vesting and recorded charges of $ 3.0 million and $ 2.3 million , respectively , and corresponding increases to additional paid in capital in the accompanying consolidated financial statements .
fair value of financial instruments 2014the carrying values of the company 2019s financial instruments , with the exception of long-term obligations , including current portion , reasonably approximate the related fair values as of december 31 , 2004 and 2003 .
as of december 31 , 2004 , the carrying amount and fair value of long-term obligations , including current portion , were $ 3.3 billion and $ 3.6 billion , respectively .
as of december 31 , 2003 , the carrying amount and fair value of long-term obligations , including current portion , were $ 3.4 billion and $ 3.6 billion , respectively .
fair values are based primarily on quoted market prices for those or similar instruments .
retirement plan 2014the company has a 401 ( k ) plan covering substantially all employees who meet certain age and employment requirements .
under the plan , the company matching contribution for periods prior to june 30 , 2004 was 35% ( 35 % ) up to a maximum 5% ( 5 % ) of a participant 2019s contributions .
effective july 1 , 2004 , the plan was amended to increase the company match to 50% ( 50 % ) up to a maximum 6% ( 6 % ) of a participant 2019s contributions .
the company contributed approximately $ 533000 , $ 825000 and $ 979000 to the plan for the years ended december 31 , 2004 , 2003 and 2002 , respectively .
recent accounting pronouncements 2014in december 2004 , the fasb issued sfas no .
123r , which is a revision of sfas no .
123 , 201caccounting for stock-based compensation , 201d and supersedes apb no .
25 , accounting for


part a0ii item a05 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities our common stock is listed on the new york stock exchange under the symbol 201ctfx . 201d as of february 19 , 2019 , we had 473 holders of record of our common stock .
a substantially greater number of holders of our common stock are beneficial owners whose shares are held by brokers and other financial institutions for the accounts of beneficial owners .
stock performance graph the following graph provides a comparison of five year cumulative total stockholder returns of teleflex common stock , the standard a0& poor 2019s ( s&p ) 500 stock index and the s&p 500 healthcare equipment & supply index .
the annual changes for the five-year period shown on the graph are based on the assumption that $ 100 had been invested in teleflex common stock and each index on december a031 , 2013 and that all dividends were reinvested .
market performance .

company / index                             | 2013 | 2014 | 2015 | 2016 | 2017 | 2018
------------------------------------------- | ---- | ---- | ---- | ---- | ---- | ----
teleflex incorporated                       | 100  | 124  | 143  | 177  | 275  | 288
s&p 500 index                               | 100  | 114  | 115  | 129  | 157  | 150
s&p 500 healthcare equipment & supply index | 100  | 126  | 134  | 142  | 186  | 213

s&p 500 healthcare equipment & supply index 100 126 134 142 186 213


note 8 2014 benefit plans the company has defined benefit pension plans covering certain employees in the united states and certain international locations .
postretirement healthcare and life insurance benefits provided to qualifying domestic retirees as well as other postretirement benefit plans in international countries are not material .
the measurement date used for the company 2019s employee benefit plans is september 30 .
effective january 1 , 2018 , the legacy u.s .
pension plan was frozen to limit the participation of employees who are hired or re-hired by the company , or who transfer employment to the company , on or after january 1 , net pension cost for the years ended september 30 included the following components: .

( millions of dollars )                                                                      | pension plans 2018 | pension plans 2017 | pension plans 2016
-------------------------------------------------------------------------------------------- | ------------------ | ------------------ | ------------------
service cost                                                                                | $ 136              | $ 110              | $ 81
interest cost                                                                                | 90                 | 61                 | 72
expected return on plan assets                                                               | -154 ( 154 )       | -112 ( 112 )       | -109 ( 109 )
amortization of prior service credit                                                         | -13 ( 13 )         | -14 ( 14 )         | -15 ( 15 )
amortization of loss                                                                         | 78                 | 92                 | 77
settlements                                                                                | 2                  | 2014               | 7
net pension cost                                                                             | $ 137              | $ 138              | $ 113
net pension cost included in the preceding table that is attributable to international plans | $ 34               | $ 43               | $ 35

net pension cost included in the preceding table that is attributable to international plans $ 34 $ 43 $ 35 the amounts provided above for amortization of prior service credit and amortization of loss represent the reclassifications of prior service credits and net actuarial losses that were recognized in accumulated other comprehensive income ( loss ) in prior periods .
the settlement losses recorded in 2018 and 2016 primarily included lump sum benefit payments associated with the company 2019s u.s .
supplemental pension plan .
the company recognizes pension settlements when payments from the supplemental plan exceed the sum of service and interest cost components of net periodic pension cost associated with this plan for the fiscal year.


devon energy corporation and subsidiaries notes to consolidated financial statements 2013 ( continued ) proved undeveloped reserves the following table presents the changes in devon 2019s total proved undeveloped reserves during 2012 ( in mmboe ) . .

                                                   | u.s .      | canada     | total
-------------------------------------------------- | ---------- | ---------- | ----------
proved undeveloped reserves as of december 31 2011 | 403        | 379        | 782
extensions and discoveries                         | 134        | 68         | 202
revisions due to prices                            | -47 ( 47 ) | 9          | -38 ( 38 )
revisions other than price                         | -10 ( 10 ) | -6 ( 6 )   | -16 ( 16 )
conversion to proved developed reserves            | -73 ( 73 ) | -17 ( 17 ) | -90 ( 90 )
proved undeveloped reserves as of december 31 2012 | 407        | 433        | 840

at december 31 , 2012 , devon had 840 mmboe of proved undeveloped reserves .
this represents a 7 percent increase as compared to 2011 and represents 28 percent of its total proved reserves .
drilling and development activities increased devon 2019s proved undeveloped reserves 203 mmboe and resulted in the conversion of 90 mmboe , or 12 percent , of the 2011 proved undeveloped reserves to proved developed reserves .
costs incurred related to the development and conversion of devon 2019s proved undeveloped reserves were $ 1.3 billion for 2012 .
additionally , revisions other than price decreased devon 2019s proved undeveloped reserves 16 mmboe primarily due to its evaluation of certain u.s .
onshore dry-gas areas , which it does not expect to develop in the next five years .
the largest revisions relate to the dry-gas areas at carthage in east texas and the barnett shale in north texas .
a significant amount of devon 2019s proved undeveloped reserves at the end of 2012 largely related to its jackfish operations .
at december 31 , 2012 and 2011 , devon 2019s jackfish proved undeveloped reserves were 429 mmboe and 367 mmboe , respectively .
development schedules for the jackfish reserves are primarily controlled by the need to keep the processing plants at their 35000 barrel daily facility capacity .
processing plant capacity is controlled by factors such as total steam processing capacity , steam-oil ratios and air quality discharge permits .
as a result , these reserves are classified as proved undeveloped for more than five years .
currently , the development schedule for these reserves extends though the year 2031 .
price revisions 2012 - reserves decreased 171 mmboe primarily due to lower gas prices .
of this decrease , 100 mmboe related to the barnett shale and 25 mmboe related to the rocky mountain area .
2011 - reserves decreased 21 mmboe due to lower gas prices and higher oil prices .
the higher oil prices increased devon 2019s canadian royalty burden , which reduced devon 2019s oil reserves .
2010 - reserves increased 72 mmboe due to higher gas prices , partially offset by the effect of higher oil prices .
the higher oil prices increased devon 2019s canadian royalty burden , which reduced devon 2019s oil reserves .
of the 72 mmboe price revisions , 43 mmboe related to the barnett shale and 22 mmboe related to the rocky mountain area .
revisions other than price total revisions other than price for 2012 and 2011 primarily related to devon 2019s evaluation of certain dry gas regions noted in the proved undeveloped reserves discussion above .
total revisions other than price for 2010 primarily related to devon 2019s drilling and development in the barnett shale.


concentration of credit risk credit risk represents the accounting loss that would be recognized at the reporting date if counterparties failed to perform as contracted .
the company believes the likelihood of incurring material losses due to concentration of credit risk is remote .
the principal financial instruments subject to credit risk are as follows : cash and cash equivalents - the company maintains cash deposits with major banks , which from time to time may exceed insured limits .
the possibility of loss related to financial condition of major banks has been deemed minimal .
additionally , the company 2019s investment policy limits exposure to concentrations of credit risk and changes in market conditions .
accounts receivable - a large number of customers in diverse industries and geographies , as well as the practice of establishing reasonable credit lines , limits credit risk .
based on historical trends and experiences , the allowance for doubtful accounts is adequate to cover potential credit risk losses .
foreign currency and interest rate contracts and derivatives - exposure to credit risk is limited by internal policies and active monitoring of counterparty risks .
in addition , the company uses a diversified group of major international banks and financial institutions as counterparties .
the company does not anticipate nonperformance by any of these counterparties .
cash and cash equivalents cash equivalents include highly-liquid investments with a maturity of three months or less when purchased .
accounts receivable and allowance for doubtful accounts accounts receivable are carried at their face amounts less an allowance for doubtful accounts .
accounts receivable are recorded at the invoiced amount and generally do not bear interest .
the company estimates the balance of allowance for doubtful accounts by analyzing accounts receivable balances by age and applying historical write-off and collection trend rates .
the company 2019s estimates include separately providing for customer balances based on specific circumstances and credit conditions , and when it is deemed probable that the balance is uncollectible .
account balances are charged off against the allowance when it is determined the receivable will not be recovered .
the company 2019s allowance for doubtful accounts balance also includes an allowance for the expected return of products shipped and credits related to pricing or quantities shipped of $ 15 million as of december 31 , 2015 and 2014 and $ 14 million as of december 31 , 2013 .
returns and credit activity is recorded directly to sales .
the following table summarizes the activity in the allowance for doubtful accounts: .

( millions )      | 2015       | 2014       | 2013
----------------- | ---------- | ---------- | ----------
beginning balance | $ 77       | $ 81       | $ 73
bad debt expense  | 26         | 23         | 28
write-offs        | -22 ( 22 ) | -20 ( 20 ) | -21 ( 21 )
other ( a )       | -6 ( 6 )   | -7 ( 7 )   | 1
ending balance    | $ 75       | $ 77       | $ 81

( a ) other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits .
inventory valuations inventories are valued at the lower of cost or market .
certain u.s .
inventory costs are determined on a last-in , first-out ( lifo ) basis .
lifo inventories represented 39% ( 39 % ) and 37% ( 37 % ) of consolidated inventories as of december 31 , 2015 and 2014 , respectively .
lifo inventories include certain legacy nalco u.s .
inventory acquired at fair value as part of the nalco merger .
all other inventory costs are determined using either the average cost or first-in , first-out ( fifo ) methods .
inventory values at fifo , as shown in note 5 , approximate replacement during the fourth quarter of 2015 , the company improved estimates related to its inventory reserves and product costing , resulting in a net pre-tax charge of approximately $ 6 million .
separately , the actions resulted in charge of $ 20.6 million related to inventory reserve calculations , partially offset by a gain of $ 14.5 million related to the capitalization of certain cost components into inventory .
both of these items are reflected in note 3.


part i item 1 entergy corporation , utility operating companies , and system energy entergy wholesale commodities during 2010 entergy integrated its non-utility nuclear and its non-nuclear wholesale assets businesses into a new organization called entergy wholesale commodities .
entergy wholesale commodities includes the ownership and operation of six nuclear power plants , five of which are located in the northeast united states , with the sixth located in michigan , and is primarily focused on selling electric power produced by those plants to wholesale customers .
entergy wholesale commodities 2019 revenues are primarily derived from sales of energy and generation capacity from these plants .
entergy wholesale commodities also provides operations and management services , including decommissioning services , to nuclear power plants owned by other utilities in the united states .
entergy wholesale commodities also includes the ownership of , or participation in joint ventures that own , non-nuclear power plants and the sale to wholesale customers of the electric power produced by these plants .
property nuclear generating stations entergy wholesale commodities includes the ownership of the following nuclear power plants : power plant market service acquired location capacity- reactor type license expiration .

power plant    | market | inserviceyear | acquired    | location       | capacity-reactor type       | licenseexpirationdate
-------------- | ------ | ------------- | ----------- | -------------- | --------------------------- | ---------------------
pilgrim        | is0-ne | 1972          | july 1999   | plymouth ma    | 688 mw - boiling water      | 2012
fitzpatrick    | nyiso  | 1975          | nov . 2000  | oswego ny      | 838 mw - boiling water      | 2034
indian point 3 | nyiso  | 1976          | nov . 2000  | buchanan ny    | 1041 mw - pressurized water | 2015
indian point 2 | nyiso  | 1974          | sept . 2001 | buchanan ny    | 1028 mw - pressurized water | 2013
vermont yankee | is0-ne | 1972          | july 2002   | vernon vt      | 605 mw - boiling water      | 2032
palisades      | miso   | 1971          | apr . 2007  | south haven mi | 811 mw - pressurized water  | 2031

entergy wholesale commodities also includes the ownership of two non-operating nuclear facilities , big rock point in michigan and indian point 1 in new york that were acquired when entergy purchased the palisades and indian point 2 nuclear plants , respectively .
these facilities are in various stages of the decommissioning process .
the nrc operating license for vermont yankee was to expire in march 2012 .
in march 2011 the nrc renewed vermont yankee 2019s operating license for an additional 20 years , as a result of which the license now expires in 2032 .
for additional discussion regarding the continued operation of the vermont yankee plant , see 201cimpairment of long-lived assets 201d in note 1 to the financial statements .
the operating licenses for pilgrim , indian point 2 , and indian point 3 expire between 2012 and 2015 .
under federal law , nuclear power plants may continue to operate beyond their license expiration dates while their renewal applications are pending nrc approval .
various parties have expressed opposition to renewal of the licenses .
with respect to the pilgrim license renewal , the atomic safety and licensing board ( aslb ) of the nrc , after issuing an order denying a new hearing request , terminated its proceeding on pilgrim 2019s license renewal application .
with the aslb process concluded the proceeding , including appeals of certain aslb decisions , is now before the nrc .
in april 2007 , entergy submitted an application to the nrc to renew the operating licenses for indian point 2 and 3 for an additional 20 years .
the aslb has admitted 21 contentions raised by the state of new york or other parties , which were combined into 16 discrete issues .
two of the issues have been resolved , leaving 14 issues that are currently subject to aslb hearings .
in july 2011 , the aslb granted the state of new york 2019s motion for summary disposition of an admitted contention challenging the adequacy of a section of indian point 2019s environmental analysis as incorporated in the fseis ( discussed below ) .
that section provided cost estimates for severe accident mitigation alternatives ( samas ) , which are hardware and procedural changes that could be


5 .
stock based compensation overview maa accounts for its stock based employee compensation plans in accordance with accounting standards governing stock based compensation .
these standards require an entity to measure the cost of employee services received in exchange for an award of an equity instrument based on the award's fair value on the grant date and recognize the cost over the period during which the employee is required to provide service in exchange for the award , which is generally the vesting period .
any liability awards issued are remeasured at each reporting period .
maa 2019s stock compensation plans consist of a number of incentives provided to attract and retain independent directors , executive officers and key employees .
incentives are currently granted under the second amended and restated 2013 stock incentive plan , or the stock plan , which was approved at the 2018 annual meeting of maa shareholders .
the stock plan allows for the grant of restricted stock and stock options up to 2000000 shares .
maa believes that such awards better align the interests of its employees with those of its shareholders .
compensation expense is generally recognized for service based restricted stock awards using the straight-line method over the vesting period of the shares regardless of cliff or ratable vesting distinctions .
compensation expense for market and performance based restricted stock awards is generally recognized using the accelerated amortization method with each vesting tranche valued as a separate award , with a separate vesting date , consistent with the estimated value of the award at each period end .
additionally , compensation expense is adjusted for actual forfeitures for all awards in the period that the award was forfeited .
compensation expense for stock options is generally recognized on a straight-line basis over the requisite service period .
maa presents stock compensation expense in the consolidated statements of operations in "general and administrative expenses" .
total compensation expense under the stock plan was $ 12.9 million , $ 10.8 million and $ 12.2 million for the years ended december 31 , 2018 , 2017 and 2016 , respectively .
of these amounts , total compensation expense capitalized was $ 0.5 million , $ 0.2 million and $ 0.7 million for the years ended december 31 , 2018 , 2017 and 2016 , respectively .
as of december 31 , 2018 , the total unrecognized compensation expense was $ 13.5 million .
this cost is expected to be recognized over the remaining weighted average period of 1.1 years .
total cash paid for the settlement of plan shares totaled $ 2.9 million , $ 4.8 million and $ 2.0 million for the years ended december 31 , 2018 , 2017 and 2016 , respectively .
information concerning grants under the stock plan is provided below .
restricted stock in general , restricted stock is earned based on either a service condition , performance condition , or market condition , or a combination thereof , and generally vests ratably over a period from 1 year to 5 years .
service based awards are earned when the employee remains employed over the requisite service period and are valued on the grant date based upon the market price of maa common stock on the date of grant .
market based awards are earned when maa reaches a specified stock price or specified return on the stock price ( price appreciation plus dividends ) and are valued on the grant date using a monte carlo simulation .
performance based awards are earned when maa reaches certain operational goals such as funds from operations , or ffo , targets and are valued based upon the market price of maa common stock on the date of grant as well as the probability of reaching the stated targets .
maa remeasures the fair value of the performance based awards each balance sheet date with adjustments made on a cumulative basis until the award is settled and the final compensation is known .
the weighted average grant date fair value per share of restricted stock awards granted during the years ended december 31 , 2018 , 2017 and 2016 , was $ 71.85 , $ 84.53 and $ 73.20 , respectively .
the following is a summary of the key assumptions used in the valuation calculations for market based awards granted during the years ended december 31 , 2018 , 2017 and 2016: .

                         | 2018                                    | 2017                                    | 2016
------------------------ | --------------------------------------- | --------------------------------------- | ---------------------------------------
risk free rate           | 1.61% ( 1.61 % ) - 2.14% ( 2.14 % )     | 0.65% ( 0.65 % ) - 1.57% ( 1.57 % )     | 0.49% ( 0.49 % ) - 1.27% ( 1.27 % )
dividend yield           | 3.884% ( 3.884 % )                      | 3.573% ( 3.573 % )                      | 3.634% ( 3.634 % )
volatility               | 15.05% ( 15.05 % ) - 17.18% ( 17.18 % ) | 20.43% ( 20.43 % ) - 21.85% ( 21.85 % ) | 18.41% ( 18.41 % ) - 19.45% ( 19.45 % )
requisite service period | 3 years                                 | 3 years                                 | 3 years

the risk free rate was based on a zero coupon risk-free rate .
the minimum risk free rate was based on a period of 0.25 years for the years ended december 31 , 2018 , 2017 and 2016 .
the maximum risk free rate was based on a period of 3 years for the years ended december 31 , 2018 , 2017 and 2016 .
the dividend yield was based on the closing stock price of maa stock on the


entergy corporation and subsidiaries management's financial discussion and analysis the decrease in interest income in 2002 was primarily due to : fffd interest recognized in 2001 on grand gulf 1's decommissioning trust funds resulting from the final order addressing system energy's rate proceeding ; fffd interest recognized in 2001 at entergy mississippi and entergy new orleans on the deferred system energy costs that were not being recovered through rates ; and fffd lower interest earned on declining deferred fuel balances .
the decrease in interest charges in 2002 is primarily due to : fffd a decrease of $ 31.9 million in interest on long-term debt primarily due to the retirement of long-term debt in late 2001 and early 2002 ; and fffd a decrease of $ 76.0 million in other interest expense primarily due to interest recorded on system energy's reserve for rate refund in 2001 .
the refund was made in december 2001 .
2001 compared to 2000 results for the year ended december 31 , 2001 for u.s .
utility were also affected by an increase in interest charges of $ 61.5 million primarily due to : fffd the final ferc order addressing the 1995 system energy rate filing ; fffd debt issued at entergy arkansas in july 2001 , at entergy gulf states in june 2000 and august 2001 , at entergy mississippi in january 2001 , and at entergy new orleans in july 2000 and february 2001 ; and fffd borrowings under credit facilities during 2001 , primarily at entergy arkansas .
non-utility nuclear the increase in earnings in 2002 for non-utility nuclear from $ 128 million to $ 201 million was primarily due to the operation of indian point 2 and vermont yankee , which were purchased in september 2001 and july 2002 , respectively .
the increase in earnings in 2001 for non-utility nuclear from $ 49 million to $ 128 million was primarily due to the operation of fitzpatrick and indian point 3 for a full year , as each was purchased in november 2000 , and the operation of indian point 2 , which was purchased in september 2001 .
following are key performance measures for non-utility nuclear: .

                                   | 2002         | 2001         | 2000
---------------------------------- | ------------ | ------------ | ------------
net mw in operation at december 31 | 3955         | 3445         | 2475
generation in gwh for the year     | 29953        | 22614        | 7171
capacity factor for the year       | 93% ( 93 % ) | 93% ( 93 % ) | 94% ( 94 % )

2002 compared to 2001 the following fluctuations in the results of operations for non-utility nuclear in 2002 were primarily caused by the acquisitions of indian point 2 and vermont yankee ( except as otherwise noted ) : fffd operating revenues increased $ 411.0 million to $ 1.2 billion ; fffd other operation and maintenance expenses increased $ 201.8 million to $ 596.3 million ; fffd depreciation and amortization expenses increased $ 25.1 million to $ 42.8 million ; fffd fuel expenses increased $ 29.4 million to $ 105.2 million ; fffd nuclear refueling outage expenses increased $ 23.9 million to $ 46.8 million , which was due primarily to a


6 .
debt the following is a summary of outstanding debt ( in millions ) : .

as of december 31                                             | 2015   | 2014
------------------------------------------------------------- | ------ | ------
5.00% ( 5.00 % ) senior notes due september 2020              | 599    | 599
4.75% ( 4.75 % ) senior notes due 2045                        | 598    | 2014
3.50% ( 3.50 % ) senior notes due june 2024                   | 597    | 597
4.60% ( 4.60 % ) senior notes due june 2044                   | 549    | 549
2.875% ( 2.875 % ) senior notes due may 2026 ( eur 500m )     | 545    | 605
8.205% ( 8.205 % ) junior subordinated notes due january 2027 | 521    | 521
3.125% ( 3.125 % ) senior notes due may 2016                  | 500    | 500
2.80% ( 2.80 % ) senior notes due 2021                        | 399    | 2014
4.00% ( 4.00 % ) senior notes due november 2023               | 349    | 349
6.25% ( 6.25 % ) senior notes due september 2040              | 298    | 298
4.76% ( 4.76 % ) senior notes due march 2018 ( cad 375m )     | 271    | 322
4.45% ( 4.45 % ) senior notes due may 2043                    | 249    | 248
4.25% ( 4.25 % ) senior notes due december 2042               | 196    | 196
3.50% ( 3.50 % ) senior notes due september 2015              | 2014   | 599
commercial paper                                              | 50     | 168
other                                                         | 16     | 31
total debt                                                    | 5737   | 5582
less short-term and current portion of long-term debt         | 562    | 783
total long-term debt                                          | $ 5175 | $ 4799

revolving credit facilities as of december 31 , 2015 , aon plc had two committed credit facilities outstanding : its $ 400 million u.s .
credit facility expiring in march 2017 ( the "2017 facility" ) and $ 900 million multi-currency u.s .
credit facility expiring in february 2020 ( the "2020 facility" ) .
the 2020 facility was entered into on february 2 , 2015 and replaced the previous 20ac650 million european credit facility .
effective february 2 , 2016 , the 2020 facility terms were extended for 1 year and will expire in february 2021 .
each of these facilities included customary representations , warranties and covenants , including financial covenants that require aon plc to maintain specified ratios of adjusted consolidated ebitda to consolidated interest expense and consolidated debt to adjusted consolidated ebitda , in each case , tested quarterly .
at december 31 , 2015 , aon plc did not have borrowings under either the 2017 facility or the 2020 facility , and was in compliance with these financial covenants and all other covenants contained therein during the twelve months ended december 31 , 2015 .
on november 13 , 2015 , aon plc issued $ 400 million of 2.80% ( 2.80 % ) senior notes due march 2021 .
we used the proceeds of the issuance for general corporate purposes .
on september 30 , 2015 , $ 600 million of 3.50% ( 3.50 % ) senior notes issued by aon corporation matured and were repaid .
on may 20 , 2015 , the aon plc issued $ 600 million of 4.750% ( 4.750 % ) senior notes due may 2045 .
the company used the proceeds of the issuance for general corporate purposes .
on august 12 , 2014 , aon plc issued $ 350 million of 3.50% ( 3.50 % ) senior notes due june 2024 .
the 3.50% ( 3.50 % ) notes due 2024 constitute a further issuance of , and were consolidated to form a single series of debt securities with , the $ 250 million of 3.50% ( 3.50 % ) notes due june 2024 that was issued by aon plc on may 20 , 2014 concurrently with aon plc's issuance of $ 550 million of 4.60% ( 4.60 % ) notes due june 2044 .
aon plc used the proceeds from these issuances for working capital and general corporate purposes.


table of contents extinguishment costs incurred as a result of the repayment of certain aircraft secured indebtedness , including cash interest charges and non-cash write offs of unamortized debt issuance costs .
as a result of the 2013 refinancing activities and the early extinguishment of american 2019s 7.50% ( 7.50 % ) senior secured notes in 2014 , we recognized $ 100 million less interest expense in 2014 as compared to the 2013 period .
other nonoperating expense , net in 2014 consisted principally of net foreign currency losses of $ 114 million and early debt extinguishment charges of $ 56 million .
other nonoperating expense , net in 2013 consisted principally of net foreign currency losses of $ 56 million and early debt extinguishment charges of $ 29 million .
other nonoperating expense , net increased $ 64 million , or 73.1% ( 73.1 % ) , during 2014 primarily due to special charges recognized as a result of early debt extinguishment and an increase in foreign currency losses driven by the strengthening of the u.s .
dollar in foreign currency transactions , principally in latin american markets .
we recorded a $ 43 million special charge for venezuelan foreign currency losses in 2014 .
see part ii , item 7a .
quantitative and qualitative disclosures about market risk for further discussion of our cash held in venezuelan bolivars .
in addition , our 2014 nonoperating special items included $ 56 million primarily related to the early extinguishment of american 2019s 7.50% ( 7.50 % ) senior secured notes and other indebtedness .
reorganization items , net reorganization items refer to revenues , expenses ( including professional fees ) , realized gains and losses and provisions for losses that are realized or incurred as a direct result of the chapter 11 cases .
the following table summarizes the components included in reorganization items , net on aag 2019s consolidated statement of operations for the year ended december 31 , 2013 ( in millions ) : .

                                                                          | 2013
------------------------------------------------------------------------- | ------
labor-related deemed claim ( 1 )                                          | $ 1733
aircraft and facility financing renegotiations and rejections ( 2 ) ( 3 ) | 325
fair value of conversion discount ( 4 )                                   | 218
professional fees                                                         | 199
other                                                                     | 180
total reorganization items net                                            | $ 2655

( 1 ) in exchange for employees 2019 contributions to the successful reorganization , including agreeing to reductions in pay and benefits , we agreed in the plan to provide each employee group a deemed claim , which was used to provide a distribution of a portion of the equity of the reorganized entity to those employees .
each employee group received a deemed claim amount based upon a portion of the value of cost savings provided by that group through reductions to pay and benefits as well as through certain work rule changes .
the total value of this deemed claim was approximately $ 1.7 billion .
( 2 ) amounts include allowed claims ( claims approved by the bankruptcy court ) and estimated allowed claims relating to ( i ) the rejection or modification of financings related to aircraft and ( ii ) entry of orders treated as unsecured claims with respect to facility agreements supporting certain issuances of special facility revenue bonds .
the debtors recorded an estimated claim associated with the rejection or modification of a financing or facility agreement when the applicable motion was filed with the bankruptcy court to reject or modify such financing or facility agreement and the debtors believed that it was probable the motion would be approved , and there was sufficient information to estimate the claim .
see note 2 to aag 2019s consolidated financial statements in part ii , item 8a for further information .
( 3 ) pursuant to the plan , the debtors agreed to allow certain post-petition unsecured claims on obligations .
as a result , during the year ended december 31 , 2013 , we recorded reorganization charges to adjust estimated allowed claim amounts previously recorded on rejected special facility revenue bonds of $ 180 million , allowed general unsecured claims related to the 1990 and 1994 series of special facility revenue bonds that financed certain improvements at jfk , and rejected bonds that financed certain improvements at ord , which are included in the table above.


the performance units granted to certain executives in fiscal 2014 were based on a one-year performance period .
after the compensation committee certified the performance results , 25% ( 25 % ) of the performance units converted to unrestricted shares .
the remaining 75% ( 75 % ) converted to restricted shares that vest in equal installments on each of the first three anniversaries of the conversion date .
the performance units granted to certain executives during fiscal 2015 were based on a three-year performance period .
after the compensation committee certifies the performance results for the three-year period , performance units earned will convert into unrestricted common stock .
the compensation committee may set a range of possible performance-based outcomes for performance units .
depending on the achievement of the performance measures , the grantee may earn up to 200% ( 200 % ) of the target number of shares .
for awards with only performance conditions , we recognize compensation expense over the performance period using the grant date fair value of the award , which is based on the number of shares expected to be earned according to the level of achievement of performance goals .
if the number of shares expected to be earned were to change at any time during the performance period , we would make a cumulative adjustment to share-based compensation expense based on the revised number of shares expected to be earned .
during fiscal 2015 , certain executives were granted performance units that we refer to as leveraged performance units , or lpus .
lpus contain a market condition based on our relative stock price growth over a three-year performance period .
the lpus contain a minimum threshold performance which , if not met , would result in no payout .
the lpus also contain a maximum award opportunity set as a fixed dollar and fixed number of shares .
after the three-year performance period , one-third of any earned units converts to unrestricted common stock .
the remaining two-thirds convert to restricted stock that will vest in equal installments on each of the first two anniversaries of the conversion date .
we recognize share-based compensation expense based on the grant date fair value of the lpus , as determined by use of a monte carlo model , on a straight-line basis over the requisite service period for each separately vesting portion of the lpu award .
total shareholder return units before fiscal 2015 , certain of our executives were granted total shareholder return ( 201ctsr 201d ) units , which are performance-based restricted stock units that are earned based on our total shareholder return over a three-year performance period compared to companies in the s&p 500 .
once the performance results are certified , tsr units convert into unrestricted common stock .
depending on our performance , the grantee may earn up to 200% ( 200 % ) of the target number of shares .
the target number of tsr units for each executive is set by the compensation committee .
we recognize share-based compensation expense based on the grant date fair value of the tsr units , as determined by use of a monte carlo model , on a straight-line basis over the vesting period .
the following table summarizes the changes in unvested share-based awards for the years ended may 31 , 2015 and 2014 ( shares in thousands ) : shares weighted-average grant-date fair value .

                        | shares       | weighted-averagegrant-datefair value
----------------------- | ------------ | ------------------------------------
unvested at may 31 2013 | 1096         | $ 44
granted                 | 544          | 47
vested                  | -643 ( 643 ) | 45
forfeited               | -120 ( 120 ) | 45
unvested at may 31 2014 | 877          | 45
granted                 | 477          | 72
vested                  | -324 ( 324 ) | 46
forfeited               | -106 ( 106 ) | 53
unvested at may 31 2015 | 924          | $ 58

global payments inc .
| 2015 form 10-k annual report 2013 81


notes to consolidated financial statements 192 jpmorgan chase & co .
/ 2008 annual report consolidation analysis the multi-seller conduits administered by the firm were not consoli- dated at december 31 , 2008 and 2007 , because each conduit had issued expected loss notes ( 201celns 201d ) , the holders of which are com- mitted to absorbing the majority of the expected loss of each respective conduit .
implied support the firm did not have and continues not to have any intent to pro- tect any eln holders from potential losses on any of the conduits 2019 holdings and has no plans to remove any assets from any conduit unless required to do so in its role as administrator .
should such a transfer occur , the firm would allocate losses on such assets between itself and the eln holders in accordance with the terms of the applicable eln .
expected loss modeling in determining the primary beneficiary of the conduits the firm uses a monte carlo 2013based model to estimate the expected losses of each of the conduits and considers the relative rights and obliga- tions of each of the variable interest holders .
the firm 2019s expected loss modeling treats all variable interests , other than the elns , as its own to determine consolidation .
the variability to be considered in the modeling of expected losses is based on the design of the enti- ty .
the firm 2019s traditional multi-seller conduits are designed to pass credit risk , not liquidity risk , to its variable interest holders , as the assets are intended to be held in the conduit for the longer term .
under fin 46 ( r ) , the firm is required to run the monte carlo-based expected loss model each time a reconsideration event occurs .
in applying this guidance to the conduits , the following events , are considered to be reconsideration events , as they could affect the determination of the primary beneficiary of the conduits : 2022 new deals , including the issuance of new or additional variable interests ( credit support , liquidity facilities , etc ) ; 2022 changes in usage , including the change in the level of outstand- ing variable interests ( credit support , liquidity facilities , etc ) ; 2022 modifications of asset purchase agreements ; and 2022 sales of interests held by the primary beneficiary .
from an operational perspective , the firm does not run its monte carlo-based expected loss model every time there is a reconsideration event due to the frequency of their occurrence .
instead , the firm runs its expected loss model each quarter and includes a growth assump- tion for each conduit to ensure that a sufficient amount of elns exists for each conduit at any point during the quarter .
as part of its normal quarterly modeling , the firm updates , when applicable , the inputs and assumptions used in the expected loss model .
specifically , risk ratings and loss given default assumptions are continually updated .
the total amount of expected loss notes out- standing at december 31 , 2008 and 2007 , were $ 136 million and $ 130 million , respectively .
management has concluded that the model assumptions used were reflective of market participants 2019 assumptions and appropriately considered the probability of changes to risk ratings and loss given defaults .
qualitative considerations the multi-seller conduits are primarily designed to provide an effi- cient means for clients to access the commercial paper market .
the firm believes the conduits effectively disperse risk among all parties and that the preponderance of the economic risk in the firm 2019s multi- seller conduits is not held by jpmorgan chase .
consolidated sensitivity analysis on capital the table below shows the impact on the firm 2019s reported assets , lia- bilities , tier 1 capital ratio and tier 1 leverage ratio if the firm were required to consolidate all of the multi-seller conduits that it admin- isters at their current carrying value .
december 31 , 2008 ( in billions , except ratios ) reported pro forma ( a ) ( b ) .

( in billions except ratios ) | reported         | pro forma ( a ) ( b )
----------------------------- | ---------------- | ---------------------
assets                        | $ 2175.1         | $ 2218.2
liabilities                   | 2008.2           | 2051.3
tier 1 capital ratio          | 10.9% ( 10.9 % ) | 10.9% ( 10.9 % )
tier 1 leverage ratio         | 6.9              | 6.8

( a ) the table shows the impact of consolidating the assets and liabilities of the multi- seller conduits at their current carrying value ; as such , there would be no income statement or capital impact at the date of consolidation .
if the firm were required to consolidate the assets and liabilities of the conduits at fair value , the tier 1 capital ratio would be approximately 10.8% ( 10.8 % ) .
the fair value of the assets is primarily based upon pricing for comparable transactions .
the fair value of these assets could change significantly because the pricing of conduit transactions is renegotiated with the client , generally , on an annual basis and due to changes in current market conditions .
( b ) consolidation is assumed to occur on the first day of the quarter , at the quarter-end levels , in order to provide a meaningful adjustment to average assets in the denomi- nator of the leverage ratio .
the firm could fund purchases of assets from vies should it become necessary .
2007 activity in july 2007 , a reverse repurchase agreement collateralized by prime residential mortgages held by a firm-administered multi-seller conduit was put to jpmorgan chase under its deal-specific liquidity facility .
the asset was transferred to and recorded by jpmorgan chase at its par value based on the fair value of the collateral that supported the reverse repurchase agreement .
during the fourth quarter of 2007 , additional information regarding the value of the collateral , including performance statistics , resulted in the determi- nation by the firm that the fair value of the collateral was impaired .
impairment losses were allocated to the eln holder ( the party that absorbs the majority of the expected loss from the conduit ) in accor- dance with the contractual provisions of the eln note .
on october 29 , 2007 , certain structured cdo assets originated in the second quarter of 2007 and backed by subprime mortgages were transferred to the firm from two firm-administered multi-seller conduits .
it became clear in october that commercial paper investors and rating agencies were becoming increasingly concerned about cdo assets backed by subprime mortgage exposures .
because of these concerns , and to ensure the continuing viability of the two conduits as financing vehicles for clients and as investment alternatives for commercial paper investors , the firm , in its role as administrator , transferred the cdo assets out of the multi-seller con- duits .
the structured cdo assets were transferred to the firm at


note 9 : stock based compensation the company has granted stock option and restricted stock unit ( 201crsus 201d ) awards to non-employee directors , officers and other key employees of the company pursuant to the terms of its 2007 omnibus equity compensation plan ( the 201c2007 plan 201d ) .
the total aggregate number of shares of common stock that may be issued under the 2007 plan is 15.5 .
as of december 31 , 2015 , 8.4 shares were available for grant under the 2007 plan .
shares issued under the 2007 plan may be authorized-but-unissued shares of company stock or reacquired shares of company stock , including shares purchased by the company on the open market .
the company recognizes compensation expense for stock awards over the vesting period of the award .
the following table presents stock-based compensation expense recorded in operation and maintenance expense in the accompanying consolidated statements of operations for the years ended december 31: .

                                            | 2015     | 2014     | 2013
------------------------------------------- | -------- | -------- | --------
stock options                               | $ 2      | $ 2      | $ 3
rsus                                        | 8        | 10       | 9
espp                                        | 1        | 1        | 1
stock-based compensation                    | 11       | 13       | 13
income tax benefit                          | -4 ( 4 ) | -5 ( 5 ) | -5 ( 5 )
stock-based compensation expense net of tax | $ 7      | $ 8      | $ 8

there were no significant stock-based compensation costs capitalized during the years ended december 31 , 2015 , 2014 and 2013 .
the cost of services received from employees in exchange for the issuance of stock options and restricted stock awards is measured based on the grant date fair value of the awards issued .
the value of stock options and rsus awards at the date of the grant is amortized through expense over the three-year service period .
all awards granted in 2015 , 2014 and 2013 are classified as equity .
the company receives a tax deduction based on the intrinsic value of the award at the exercise date for stock options and the distribution date for rsus .
for each award , throughout the requisite service period , the company recognizes the tax benefits , which have been included in deferred income tax assets , related to compensation costs .
the tax deductions in excess of the benefits recorded throughout the requisite service period are recorded to common stockholders 2019 equity or the statement of operations and are presented in the financing section of the consolidated statements of cash flows .
the company stratified its grant populations and used historic employee turnover rates to estimate employee forfeitures .
the estimated rate is compared to the actual forfeitures at the end of the reporting period and adjusted as necessary .
stock options in 2015 , 2014 and 2013 , the company granted non-qualified stock options to certain employees under the 2007 plan .
the stock options vest ratably over the three-year service period beginning on january 1 of the year of the grant .
these awards have no performance vesting conditions and the grant date fair value is amortized through expense over the requisite service period using the straight-line method and is included in operations and maintenance expense in the accompanying consolidated statements of operations.


kimco realty corporation and subsidiaries notes to consolidated financial statements , continued investment in retail store leases the company has interests in various retail store leases relating to the anchor store premises in neighborhood and community shopping centers .
these premises have been sublet to retailers who lease the stores pursuant to net lease agreements .
income from the investment in these retail store leases during the years ended december 31 , 2008 , 2007 and 2006 , was approximately $ 2.7 million , $ 1.2 million and $ 1.3 million , respectively .
these amounts represent sublease revenues during the years ended december 31 , 2008 , 2007 and 2006 , of approximately $ 7.1 million , $ 7.7 million and $ 8.2 million , respectively , less related expenses of $ 4.4 million , $ 5.1 million and $ 5.7 million , respectively , and an amount which , in management 2019s estimate , reasonably provides for the recovery of the investment over a period representing the expected remaining term of the retail store leases .
the company 2019s future minimum revenues under the terms of all non-cancelable tenant subleases and future minimum obligations through the remaining terms of its retail store leases , assuming no new or renegotiated leases are executed for such premises , for future years are as follows ( in millions ) : 2009 , $ 5.6 and $ 3.8 ; 2010 , $ 5.4 and $ 3.7 ; 2011 , $ 4.5 and $ 3.1 ; 2012 , $ 2.3 and $ 2.1 ; 2013 , $ 1.0 and $ 1.3 and thereafter , $ 1.4 and $ 0.5 , respectively .
leveraged lease during june 2002 , the company acquired a 90% ( 90 % ) equity participation interest in an existing leveraged lease of 30 properties .
the properties are leased under a long-term bond-type net lease whose primary term expires in 2016 , with the lessee having certain renewal option rights .
the company 2019s cash equity investment was approximately $ 4.0 million .
this equity investment is reported as a net investment in leveraged lease in accordance with sfas no .
13 , accounting for leases ( as amended ) .
from 2002 to 2007 , 18 of these properties were sold , whereby the proceeds from the sales were used to pay down the mortgage debt by approximately $ 31.2 million .
as of december 31 , 2008 , the remaining 12 properties were encumbered by third-party non-recourse debt of approximately $ 42.8 million that is scheduled to fully amortize during the primary term of the lease from a portion of the periodic net rents receivable under the net lease .
as an equity participant in the leveraged lease , the company has no recourse obligation for principal or interest payments on the debt , which is collateralized by a first mortgage lien on the properties and collateral assignment of the lease .
accordingly , this obligation has been offset against the related net rental receivable under the lease .
at december 31 , 2008 and 2007 , the company 2019s net investment in the leveraged lease consisted of the following ( in millions ) : .

                                      | 2008           | 2007
------------------------------------- | -------------- | --------------
remaining net rentals                 | $ 53.8         | $ 55.0
estimated unguaranteed residual value | 31.7           | 36.0
non-recourse mortgage debt            | -38.5 ( 38.5 ) | -43.9 ( 43.9 )
unearned and deferred income          | -43.0 ( 43.0 ) | -43.3 ( 43.3 )
net investment in leveraged lease     | $ 4.0          | $ 3.8

9 .
mortgages and other financing receivables : the company has various mortgages and other financing receivables which consist of loans acquired and loans originated by the company .
for a complete listing of the company 2019s mortgages and other financing receivables at december 31 , 2008 , see financial statement schedule iv included on page 141 of this annual report on form 10-k .
reconciliation of mortgage loans and other financing receivables on real estate:


the following table provides the weighted average assumptions used in the black-scholes option-pricing model for grants and the resulting weighted average grant date fair value per share of stock options granted for the years ended december 31: .

                            | 2018 | 2017 | 2016
--------------------------- | ---- | ---- | ----
intrinsic value             | $ 9  | $ 10 | $ 18
exercise proceeds           | 7    | 11   | 15
income tax benefit realized | 2    | 3    | 6

stock units during 2018 , 2017 and 2016 , the company granted rsus to certain employees under the 2007 plan and 2017 omnibus plan , as applicable .
rsus generally vest based on continued employment with the company over periods ranging from one to three years.


notes to consolidated financial statements ( continued ) note 8 2014commitments and contingencies ( continued ) the following table reconciles changes in the company 2019s accrued warranties and related costs ( in millions ) : .

                                             | 2007         | 2006         | 2005
-------------------------------------------- | ------------ | ------------ | ------------
beginning accrued warranty and related costs | $ 284        | $ 188        | $ 105
cost of warranty claims                      | -281 ( 281 ) | -267 ( 267 ) | -188 ( 188 )
accruals for product warranties              | 227          | 363          | 271
ending accrued warranty and related costs    | $ 230        | $ 284        | $ 188

the company generally does not indemnify end-users of its operating system and application software against legal claims that the software infringes third-party intellectual property rights .
other agreements entered into by the company sometimes include indemnification provisions under which the company could be subject to costs and/or damages in the event of an infringement claim against the company or an indemnified third-party .
however , the company has not been required to make any significant payments resulting from such an infringement claim asserted against itself or an indemnified third-party and , in the opinion of management , does not have a potential liability related to unresolved infringement claims subject to indemnification that would have a material adverse effect on its financial condition or operating results .
therefore , the company did not record a liability for infringement costs as of either september 29 , 2007 or september 30 , 2006 .
concentrations in the available sources of supply of materials and product certain key components including , but not limited to , microprocessors , enclosures , certain lcds , certain optical drives , and application-specific integrated circuits ( 2018 2018asics 2019 2019 ) are currently obtained by the company from single or limited sources which subjects the company to supply and pricing risks .
many of these and other key components that are available from multiple sources including , but not limited to , nand flash memory , dram memory , and certain lcds , are at times subject to industry-wide shortages and significant commodity pricing fluctuations .
in addition , the company has entered into certain agreements for the supply of critical components at favorable pricing , and there is no guarantee that the company will be able to extend or renew these agreements when they expire .
therefore , the company remains subject to significant risks of supply shortages and/or price increases that can adversely affect gross margins and operating margins .
in addition , the company uses some components that are not common to the rest of the global personal computer , consumer electronics and mobile communication industries , and new products introduced by the company often utilize custom components obtained from only one source until the company has evaluated whether there is a need for and subsequently qualifies additional suppliers .
if the supply of a key single-sourced component to the company were to be delayed or curtailed , or in the event a key manufacturing vendor delays shipments of completed products to the company , the company 2019s ability to ship related products in desired quantities and in a timely manner could be adversely affected .
the company 2019s business and financial performance could also be adversely affected depending on the time required to obtain sufficient quantities from the original source , or to identify and obtain sufficient quantities from an alternative source .
continued availability of these components may be affected if producers were to decide to concentrate on the production of common components instead of components customized to meet the company 2019s requirements .
finally , significant portions of the company 2019s cpus , ipods , iphones , logic boards , and other assembled products are now manufactured by outsourcing partners , primarily in various parts of asia .
a significant concentration of this outsourced manufacturing is currently performed by only a few of the company 2019s outsourcing partners , often in single locations .
certain of these outsourcing partners are the sole-sourced supplier of components and manufacturing outsourcing for many of the company 2019s key products , including but not limited to , assembly


intangibles 2014 goodwill and other : testing goodwill for impairment in september 2011 , an accounting standard update was issued that allows entities an option to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test .
this standard is effective for annual and interim goodwill impairment testing beginning january 1 , 2012 .
this standard will not have an impact on our financial condition , results of operations and cash flows .
note 2 : merger and acquisitions holly - frontier merger on february 21 , 2011 , we entered into a merger agreement providing for a 201cmerger of equals 201d business combination between us and frontier for purposes of creating a more diversified company having a broader geographic sales footprint , stronger financial position and to create a more efficient corporate overhead structure , while also realizing synergies and promoting accretion to earnings per share .
the legacy frontier business operations consist of crude oil refining and the wholesale marketing of refined petroleum products produced at the el dorado and cheyenne refineries and serve markets in the rocky mountain and plains states regions of the united states .
on july 1 , 2011 , north acquisition , inc. , a direct wholly-owned subsidiary of holly , merged with and into frontier , with frontier surviving as a wholly-owned subsidiary of holly .
concurrent with the merger , we changed our name to hollyfrontier corporation and changed the ticker symbol for our common stock traded on the new york stock exchange to 201chfc . 201d subsequent to the merger and following approval by the post-closing board of directors of hollyfrontier , frontier merged with and into hollyfrontier , with hollyfrontier continuing as the surviving corporation .
in accordance with the merger agreement , we issued 102.8 million shares of hollyfrontier common stock in exchange for outstanding shares of frontier common stock to former frontier stockholders .
each outstanding share of frontier common stock was converted into 0.4811 shares of hollyfrontier common stock with any fractional shares paid in cash .
the aggregate consideration paid in stock in connection with the merger was $ 3.7 billion .
this is based on our july 1 , 2011 market closing price of $ 35.93 and includes a portion of the fair value of the outstanding equity-based awards assumed from frontier that relates to pre-merger services .
the number of shares issued in connection with our merger with frontier and the closing market price of our common stock at july 1 , 2011 have been adjusted to reflect the two-for-one stock split on august 31 , 2011 .
the merger has been accounted for using the acquisition method of accounting with holly being considered the acquirer of frontier for accounting purposes .
therefore , the purchase price was allocated to the fair value of the acquired assets and assumed liabilities at the acquisition date , with the excess purchase price being recorded as goodwill .
the goodwill resulting from the merger is primarily due to the favorable location of the acquired refining facilities and the expected synergies to be gained from our combined business operations .
goodwill related to this merger is not deductible for income tax purposes .
the following table summarizes our fair value estimates of the frontier assets and liabilities recognized upon our merger on july 1 , 2011: .

                                                                    | ( in millions )
------------------------------------------------------------------- | ------------------
cash and cash equivalents                                           | $ 872.7
accounts receivable                                                 | 737.9
inventories                                                         | 657.4
properties plants and equipment                                     | 1054.3
goodwill                                                            | 2254.0
income taxes receivable                                             | 37.8
other assets                                                        | 32.8
accounts payable                                                    | -1076.7 ( 1076.7 )
accrued liabilities                                                 | -40.7 ( 40.7 )
long-term debt                                                      | -370.6 ( 370.6 )
other long-term liabilities                                         | -96.1 ( 96.1 )
deferred income taxes                                               | -357.6 ( 357.6 )
net tangible and intangible assets acquired and liabilities assumed | $ 3705.2


middleton's reported cigars shipment volume for 2012 decreased 0.7% ( 0.7 % ) due primarily to changes in trade inventories , partially offset by volume growth as a result of retail share gains .
in the cigarette category , marlboro's 2012 retail share performance continued to benefit from the brand-building initiatives supporting marlboro's new architecture .
marlboro's retail share for 2012 increased 0.6 share points versus 2011 to 42.6% ( 42.6 % ) .
in january 2013 , pm usa expanded distribution of marlboro southern cut nationally .
marlboro southern cut is part of the marlboro gold family .
pm usa's 2012 retail share increased 0.8 share points versus 2011 , reflecting retail share gains by marlboro and by l&m in discount .
these gains were partially offset by share losses on other portfolio brands .
in the machine-made large cigars category , black & mild's retail share for 2012 increased 0.5 share points .
the brand benefited from new untipped cigarillo varieties that were introduced in 2011 , black & mild seasonal offerings and the 2012 third-quarter introduction of black & mild jazz untipped cigarillos into select geographies .
in december 2012 , middleton announced plans to launch nationally black & mild jazz cigars in both plastic tip and wood tip in the first quarter of 2013 .
the following discussion compares smokeable products segment results for the year ended december 31 , 2011 with the year ended december 31 , 2010 .
net revenues , which include excise taxes billed to customers , decreased $ 221 million ( 1.0% ( 1.0 % ) ) due to lower shipment volume ( $ 1051 million ) , partially offset by higher net pricing ( $ 830 million ) , which includes higher promotional investments .
operating companies income increased $ 119 million ( 2.1% ( 2.1 % ) ) , due primarily to higher net pricing ( $ 831 million ) , which includes higher promotional investments , marketing , administration , and research savings reflecting cost reduction initiatives ( $ 198 million ) and 2010 implementation costs related to the closure of the cabarrus , north carolina manufacturing facility ( $ 75 million ) , partially offset by lower volume ( $ 527 million ) , higher asset impairment and exit costs due primarily to the 2011 cost reduction program ( $ 158 million ) , higher per unit settlement charges ( $ 120 million ) , higher charges related to tobacco and health judgments ( $ 87 million ) and higher fda user fees ( $ 73 million ) .
for 2011 , total smokeable products shipment volume decreased 4.0% ( 4.0 % ) versus 2010 .
pm usa's reported domestic cigarettes shipment volume declined 4.0% ( 4.0 % ) versus 2010 due primarily to retail share losses and one less shipping day , partially offset by changes in trade inventories .
after adjusting for changes in trade inventories and one less shipping day , pm usa's 2011 domestic cigarette shipment volume was estimated to be down approximately 4% ( 4 % ) versus 2010 .
pm usa believes that total cigarette category volume for 2011 decreased approximately 3.5% ( 3.5 % ) versus 2010 , when adjusted primarily for changes in trade inventories and one less shipping day .
pm usa's total premium brands ( marlboro and other premium brands ) shipment volume decreased 4.3% ( 4.3 % ) .
marlboro's shipment volume decreased 3.8% ( 3.8 % ) versus 2010 .
in the discount brands , pm usa's shipment volume decreased 0.9% ( 0.9 % ) .
pm usa's shipments of premium cigarettes accounted for 93.7% ( 93.7 % ) of its reported domestic cigarettes shipment volume for 2011 , down from 93.9% ( 93.9 % ) in 2010 .
middleton's 2011 reported cigars shipment volume was unchanged versus 2010 .
for 2011 , pm usa's retail share of the cigarette category declined 0.8 share points to 49.0% ( 49.0 % ) due primarily to retail share losses on marlboro .
marlboro's 2011 retail share decreased 0.6 share points .
in 2010 , marlboro delivered record full-year retail share results that were achieved at lower margin levels .
middleton retained a leading share of the tipped cigarillo segment of the machine-made large cigars category , with a retail share of approximately 84% ( 84 % ) in 2011 .
for 2011 , middleton's retail share of the cigar category increased 0.3 share points to 29.7% ( 29.7 % ) versus 2010 .
black & mild's 2011 retail share increased 0.5 share points , as the brand benefited from new product introductions .
during the fourth quarter of 2011 , middleton broadened its untipped cigarillo portfolio with new aroma wrap 2122 foil pouch packaging that accompanied the national introduction of black & mild wine .
this new fourth- quarter packaging roll-out also included black & mild sweets and classic varieties .
during the second quarter of 2011 , middleton entered into a contract manufacturing arrangement to source the production of a portion of its cigars overseas .
middleton entered into this arrangement to access additional production capacity in an uncertain competitive environment and an excise tax environment that potentially benefits imported large cigars over those manufactured domestically .
smokeless products segment the smokeless products segment's operating companies income grew during 2012 driven by higher pricing , copenhagen and skoal's combined volume and retail share performance and effective cost management .
the following table summarizes smokeless products segment shipment volume performance : shipment volume for the years ended december 31 .

( cans and packs in millions ) | shipment volumefor the years ended december 31 , 2012 | shipment volumefor the years ended december 31 , 2011 | shipment volumefor the years ended december 31 , 2010
------------------------------ | ----------------------------------------------------- | ----------------------------------------------------- | -----------------------------------------------------
copenhagen                     | 392.5                                                 | 354.2                                                 | 327.5
skoal                          | 288.4                                                 | 286.8                                                 | 274.4
copenhagenandskoal             | 680.9                                                 | 641.0                                                 | 601.9
other                          | 82.4                                                  | 93.6                                                  | 122.5
total smokeless products       | 763.3                                                 | 734.6                                                 | 724.4

volume includes cans and packs sold , as well as promotional units , but excludes international volume , which is not material to the smokeless products segment .
other includes certain usstc and pm usa smokeless products .
new types of smokeless products , as well as new packaging configurations


tax benefits recognized for stock-based compensation during the years ended december 31 , 2011 , 2010 and 2009 , were $ 16 million , $ 6 million and $ 5 million , respectively .
the amount of northrop grumman shares issued before the spin-off to satisfy stock-based compensation awards are recorded by northrop grumman and , accordingly , are not reflected in hii 2019s consolidated financial statements .
the company realized tax benefits during the year ended december 31 , 2011 , of $ 2 million from the exercise of stock options and $ 10 million from the issuance of stock in settlement of rpsrs and rsrs .
unrecognized compensation expense at december 31 , 2011 there was $ 1 million of unrecognized compensation expense related to unvested stock option awards , which will be recognized over a weighted average period of 1.1 years .
in addition , at december 31 , 2011 , there was $ 19 million of unrecognized compensation expense associated with the 2011 rsrs , which will be recognized over a period of 2.2 years ; $ 10 million of unrecognized compensation expense associated with the rpsrs converted as part of the spin-off , which will be recognized over a weighted average period of one year ; and $ 18 million of unrecognized compensation expense associated with the 2011 rpsrs which will be recognized over a period of 2.0 years .
stock options the compensation expense for the outstanding converted stock options was determined at the time of grant by northrop grumman .
there were no additional options granted during the year ended december 31 , 2011 .
the fair value of the stock option awards is expensed on a straight-line basis over the vesting period of the options .
the fair value of each of the stock option award was estimated on the date of grant using a black-scholes option pricing model based on the following assumptions : dividend yield 2014the dividend yield was based on northrop grumman 2019s historical dividend yield level .
volatility 2014expected volatility was based on the average of the implied volatility from traded options and the historical volatility of northrop grumman 2019s stock .
risk-free interest rate 2014the risk-free rate for periods within the contractual life of the stock option award was based on the yield curve of a zero-coupon u.s .
treasury bond on the date the award was granted with a maturity equal to the expected term of the award .
expected term 2014the expected term of awards granted was derived from historical experience and represents the period of time that awards granted are expected to be outstanding .
a stratification of expected terms based on employee populations ( executive and non-executive ) was considered in the analysis .
the following significant weighted-average assumptions were used to value stock options granted during the years ended december 31 , 2010 and 2009: .

                               | 2010           | 2009
------------------------------ | -------------- | --------------
dividend yield                 | 2.9% ( 2.9 % ) | 3.6% ( 3.6 % )
volatility rate                | 25% ( 25 % )   | 25% ( 25 % )
risk-free interest rate        | 2.3% ( 2.3 % ) | 1.7% ( 1.7 % )
expected option life ( years ) | 6              | 5 & 6

the weighted-average grant date fair value of stock options granted during the years ended december 31 , 2010 and 2009 , was $ 11 and $ 7 , per share , respectively.


edwards lifesciences corporation notes to consolidated financial statements ( continued ) 7 .
acquisitions ( continued ) was recorded to goodwill .
the following table summarizes the fair values of the assets acquired and liabilities assumed ( in millions ) : .

current assets                                 | $ 28.1
---------------------------------------------- | --------------
property and equipment net                     | 0.2
goodwill                                       | 258.9
ipr&d                                          | 190.0
current liabilities assumed                    | -32.9 ( 32.9 )
deferred income taxes                          | -66.0 ( 66.0 )
contingent consideration                       | -30.3 ( 30.3 )
total cash purchase price                      | 348.0
less : cash acquired                           | -27.9 ( 27.9 )
total cash purchase price net of cash acquired | $ 320.1

goodwill includes expected synergies and other benefits the company believes will result from the acquisition .
goodwill was assigned to the company 2019s united states segment and is not deductible for tax purposes .
ipr&d has been capitalized at fair value as an intangible asset with an indefinite life and will be assessed for impairment in subsequent periods .
the fair value of the ipr&d was determined using the income approach .
this approach determines fair value based on cash flow projections which are discounted to present value using a risk-adjusted rate of return .
the discount rate used to determine the fair value of the ipr&d was 16.5% ( 16.5 % ) .
completion of successful design developments , bench testing , pre-clinical studies and human clinical studies are required prior to selling any product .
the risks and uncertainties associated with completing development within a reasonable period of time include those related to the design , development , and manufacturability of the product , the success of pre-clinical and clinical studies , and the timing of regulatory approvals .
the valuation assumed $ 97.7 million of additional research and development expenditures would be incurred prior to the date of product introduction , and the company does not currently anticipate significant changes to forecasted research and development expenditures associated with the cardiaq program .
the company 2019s valuation model also assumed net cash inflows would commence in late 2018 , if successful clinical trial experiences lead to a ce mark approval .
upon completion of development , the underlying research and development intangible asset will be amortized over its estimated useful life .
the company disclosed in early february 2017 that it had voluntarily paused enrollment in its clinical trials for the edwards-cardiaq valve to perform further design validation testing on a feature of the valve .
this testing has been completed and , in collaboration with clinical investigators , the company has decided to resume screening patients for enrollment in its clinical trials .
the results of operations for cardiaq have been included in the accompanying consolidated financial statements from the date of acquisition .
pro forma results have not been presented as the results of cardiaq are not material in relation to the consolidated financial statements of the company .
8 .
goodwill and other intangible assets on july 3 , 2015 , the company acquired cardiaq ( see note 7 ) .
this transaction resulted in an increase to goodwill of $ 258.9 million and ipr&d of $ 190.0 million.


devon energy corporation and subsidiaries notes to consolidated financial statements 2013 ( continued ) proved undeveloped reserves the following table presents the changes in devon 2019s total proved undeveloped reserves during 2015 ( mmboe ) . .

                                                   | u.s .        | canada     | total
-------------------------------------------------- | ------------ | ---------- | ------------
proved undeveloped reserves as of december 31 2014 | 305          | 384        | 689
extensions and discoveries                         | 13           | 11         | 24
revisions due to prices                            | -115 ( 115 ) | 80         | -35 ( 35 )
revisions other than price                         | -40 ( 40 )   | -80 ( 80 ) | -120 ( 120 )
conversion to proved developed reserves            | -88 ( 88 )   | -94 ( 94 ) | -182 ( 182 )
proved undeveloped reserves as of december 31 2015 | 75           | 301        | 376

proved undeveloped reserves decreased 45% ( 45 % ) from year-end 2014 to year-end 2015 , and the year-end 2015 balance represents 17% ( 17 % ) of total proved reserves .
drilling and development activities increased devon 2019s proved undeveloped reserves 24 mmboe and resulted in the conversion of 182 mmboe , or 26% ( 26 % ) , of the 2014 proved undeveloped reserves to proved developed reserves .
costs incurred to develop and convert devon 2019s proved undeveloped reserves were approximately $ 2.2 billion for 2015 .
additionally , revisions other than price decreased devon 2019s proved undeveloped reserves 120 mmboe primarily due to evaluations of certain properties in the u.s .
and canada .
the largest revisions , which reduced reserves by 80 mmboe , relate to evaluations of jackfish bitumen reserves .
of the 40 mmboe revisions recorded for u.s .
properties , a reduction of approximately 27 mmboe represents reserves that devon now does not expect to develop in the next five years , including 20 mmboe attributable to the eagle ford .
a significant amount of devon 2019s proved undeveloped reserves at the end of 2015 related to its jackfish operations .
at december 31 , 2015 and 2014 , devon 2019s jackfish proved undeveloped reserves were 301 mmboe and 384 mmboe , respectively .
development schedules for the jackfish reserves are primarily controlled by the need to keep the processing plants at their 35 mbbl daily facility capacity .
processing plant capacity is controlled by factors such as total steam processing capacity and steam-oil ratios .
furthermore , development of these projects involves the up-front construction of steam injection/distribution and bitumen processing facilities .
due to the large up-front capital investments and large reserves required to provide economic returns , the project conditions meet the specific circumstances requiring a period greater than 5 years for conversion to developed reserves .
as a result , these reserves are classified as proved undeveloped for more than five years .
currently , the development schedule for these reserves extends through to 2030 .
at the end of 2015 , approximately 184 mmboe of proved undeveloped reserves at jackfish have remained undeveloped for five years or more since the initial booking .
no other projects have proved undeveloped reserves that have remained undeveloped more than five years from the initial booking of the reserves .
furthermore , approximately 180 mmboe of proved undeveloped reserves at jackfish will require in excess of five years , from the date of this filing , to develop .
price revisions 2015 2013 reserves decreased 302 mmboe primarily due to lower commodity prices across all products .
the lower bitumen price increased canadian reserves due to the decline in royalties , which increases devon 2019s after- royalty volumes .
2014 2013 reserves increased 9 mmboe primarily due to higher gas prices in the barnett shale and the anadarko basin , partially offset by higher bitumen prices , which result in lower after-royalty volumes , in canada.


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) the term of the economic rights agreement is seventy years ; however , tv azteca has the right to purchase , at fair market value , the economic rights from the company at any time during the last fifty years of the agreement .
should tv azteca elect to purchase the economic rights ( in whole or in part ) , it would also be obligated to repay a proportional amount of the loan discussed above at the time of such election .
the company 2019s obligation to pay tv azteca $ 1.5 million annually would also be reduced proportionally .
the company has accounted for the annual payment of $ 1.5 million as a capital lease ( initially recording an asset and a corresponding liability of approximately $ 18.6 million ) .
the capital lease asset and the discount on the note , which aggregate approximately $ 30.2 million , represent the cost to acquire the economic rights and are being amortized over the seventy-year life of the economic rights agreement .
on a quarterly basis , the company assesses the recoverability of its note receivable from tv azteca .
as of december 31 , 2005 and 2004 , the company has assessed the recoverability of the note receivable from tv azteca and concluded that no adjustment to its carrying value is required .
an executive officer and former director of the company served as a director of tv azteca from december 1999 to february 2006 .
as of december 31 , 2005 and 2004 , the company also had other long-term notes receivable outstanding of approximately $ 11.1 million and $ 11.2 million , respectively .
7 .
financing arrangements outstanding amounts under the company 2019s long-term financing arrangements consisted of the following as of december 31 , ( in thousands ) : .

                                                                         | 2005               | 2004
------------------------------------------------------------------------ | ------------------ | ------------------
american tower credit facility                                           | $ 793000           | $ 698000
spectrasite credit facility                                              | 700000             |
senior subordinated notes                                                | 400000             | 400000
senior subordinated discount notes net of discount and warrant valuation | 160252             | 303755
senior notes net of discount and premium                                 | 726754             | 1001817
convertible notes net of discount                                        | 773058             | 830056
notes payable and capital leases                                         | 60365              | 59986
total                                                                    | 3613429            | 3293614
less current portion of other long-term obligations                      | -162153 ( 162153 ) | -138386 ( 138386 )
long-term debt                                                           | $ 3451276          | $ 3155228

new credit facilities 2014in october 2005 , the company refinanced the two existing credit facilities of its principal operating subsidiaries .
the company replaced the existing american tower $ 1.1 billion senior secured credit facility with a new $ 1.3 billion senior secured credit facility and replaced the existing spectrasite $ 900.0 million senior secured credit facility with a new $ 1.15 billion senior secured credit facility .
as a result of the repayment of the previous credit facilities , the company recorded a net loss on retirement of long-term obligations of $ 9.8 million in the fourth quarter of 2005.


performance graph the graph below compares the cumulative total shareholder return on pmi's common stock with the cumulative total return for the same period of pmi's peer group and the s&p 500 index .
the graph assumes the investment of $ 100 as of december 31 , 2013 , in pmi common stock ( at prices quoted on the new york stock exchange ) and each of the indices as of the market close and reinvestment of dividends on a quarterly basis .
date pmi pmi peer group ( 1 ) s&p 500 index .

date             | pmi      | pmi peer group ( 1 ) | s&p 500 index
---------------- | -------- | -------------------- | -------------
december 31 2013 | $ 100.00 | $ 100.00             | $ 100.00
december 31 2014 | $ 97.90  | $ 107.80             | $ 113.70
december 31 2015 | $ 111.00 | $ 116.80             | $ 115.30
december 31 2016 | $ 120.50 | $ 118.40             | $ 129.00
december 31 2017 | $ 144.50 | $ 140.50             | $ 157.20
december 31 2018 | $ 96.50  | $ 127.70             | $ 150.30

( 1 ) the pmi peer group presented in this graph is the same as that used in the prior year .
the pmi peer group was established based on a review of four characteristics : global presence ; a focus on consumer products ; and net revenues and a market capitalization of a similar size to those of pmi .
the review also considered the primary international tobacco companies .
as a result of this review , the following companies constitute the pmi peer group : altria group , inc. , anheuser-busch inbev sa/nv , british american tobacco p.l.c. , the coca-cola company , colgate-palmolive co. , diageo plc , heineken n.v. , imperial brands plc , japan tobacco inc. , johnson & johnson , kimberly-clark corporation , the kraft-heinz company , mcdonald's corp. , mondel z international , inc. , nestl e9 s.a. , pepsico , inc. , the procter & gamble company , roche holding ag , and unilever nv and plc .
note : figures are rounded to the nearest $ 0.10.


company stock performance the following graph shows a five-year comparison of cumulative total shareholder return , calculated on a dividend reinvested basis , for the company , the s&p 500 composite index , the s&p computer hardware index , and the dow jones u.s .
technology index .
the graph assumes $ 100 was invested in each of the company 2019s common stock , the s&p 500 composite index , the s&p computer hardware index , and the dow jones u.s .
technology index on september 30 , 2006 .
data points on the graph are annual .
note that historic stock price performance is not necessarily indicative of future stock price performance .
comparison of 5 year cumulative total return* among apple inc. , the s&p 500 index , the s&p computer hardware index and the dow jones us technology index sep-10sep-09sep-08sep-07sep-06 sep-11 apple inc .
s&p 500 s&p computer hardware dow jones us technology *$ 100 invested on 9/30/06 in stock or index , including reinvestment of dividends .
fiscal year ending september 30 .
copyright a9 2011 s&p , a division of the mcgraw-hill companies inc .
all rights reserved .
copyright a9 2011 dow jones & co .
all rights reserved .
september 30 , september 30 , september 30 , september 30 , september 30 , september 30 .

                        | september 30 2006 | september 30 2007 | september 30 2008 | september 30 2009 | september 30 2010 | september 30 2011
----------------------- | ----------------- | ----------------- | ----------------- | ----------------- | ----------------- | -----------------
apple inc .             | $ 100             | $ 199             | $ 148             | $ 241             | $ 369             | $ 495
s&p 500                 | $ 100             | $ 116             | $ 91              | $ 85              | $ 93              | $ 94
s&p computer hardware   | $ 100             | $ 148             | $ 124             | $ 147             | $ 174             | $ 197
dow jones us technology | $ 100             | $ 123             | $ 94              | $ 104             | $ 117             | $ 120


news corporation notes to the consolidated financial statements as of june 30 , 2016 , the company had income tax net operating loss carryforwards ( nols ) ( gross , net of uncertain tax benefits ) , in various jurisdictions as follows : jurisdiction expiration amount ( in millions ) .

jurisdiction  | expiration   | amount ( in millions )
------------- | ------------ | ----------------------
u.s . federal | 2021 to 2036 | $ 858
u.s . states  | various      | 581
australia     | indefinite   | 452
u.k .         | indefinite   | 134
other foreign | various      | 346

utilization of the nols is dependent on generating sufficient taxable income from our operations in each of the respective jurisdictions to which the nols relate , while taking into account limitations and/or restrictions on our ability to use them .
certain of our u.s .
federal nols were acquired as part of the acquisitions of move and harlequin and are subject to limitations as promulgated under section 382 of the code .
section 382 of the code limits the amount of acquired nols that we can use on an annual basis to offset future u.s .
consolidated taxable income .
the nols are also subject to review by relevant tax authorities in the jurisdictions to which they relate .
the company recorded a deferred tax asset of $ 580 million and $ 540 million ( net of approximately $ 53 million and $ 95 million , respectively , of unrecognized tax benefits ) associated with its nols as of june 30 , 2016 and 2015 , respectively .
significant judgment is applied in assessing our ability to realize our nols and other tax assets .
management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize existing deferred tax assets within the applicable expiration period .
on the basis of this evaluation , valuation allowances of $ 97 million and $ 304 million have been established to reduce the deferred tax asset associated with the company 2019s nols to an amount that will more likely than not be realized as of june 30 , 2016 and 2015 , respectively .
the amount of the nol deferred tax asset considered realizable , however , could be adjusted if estimates of future taxable income during the carryforward period are reduced or if objective negative evidence in the form of cumulative losses occurs .
as of june 30 , 2016 , the company had approximately $ 1.6 billion and $ 1.7 billion of capital loss carryforwards in australia and the u.k. , respectively , which may be carried forward indefinitely and which are subject to tax authority review .
realization of our capital losses is dependent on generating capital gain taxable income and satisfying certain continuity of business requirements .
the company recorded a deferred tax asset of $ 803 million and $ 892 million as of june 30 , 2016 and 2015 , respectively for these capital loss carryforwards , however , it is more likely than not that the company will not generate capital gain income in the normal course of business in these jurisdictions .
accordingly , valuation allowances of $ 803 million and $ 892 million have been established to reduce the capital loss carryforward deferred tax asset to an amount that will more likely than not be realized as of june 30 , 2016 and 2015 , respectively .
as of june 30 , 2016 , the company had approximately $ 26 million of u.s .
federal tax credit carryforward which includes $ 22 million of foreign tax credits and $ 4 million of research & development credits which begin to expire in 2025 and 2036 , respectively .
as of june 30 , 2016 , the company had approximately $ 5 million of non-u.s .
tax credit carryforwards which expire in various amounts beginning in 2025 and $ 8 million of state tax credit carryforwards ( net of u.s .
federal benefit ) , of which the balance can be carried forward indefinitely .
in accordance with the company 2019s accounting policy , a valuation allowance of $ 5 million has been established to reduce the deferred tax asset associated with the company 2019s non-u.s .
and state credit carryforwards to an amount that will more likely than not be realized as of june 30 , 2016.