note 10 loan sales and securitizations loan sales we sell residential and commercial mortgage loans in loan securitization transactions sponsored by government national mortgage association ( gnma ) , fnma , and fhlmc and in certain instances to other third-party investors .
gnma , fnma , and the fhlmc securitize our transferred loans into mortgage-backed securities for sale into the secondary market .
generally , we do not retain any interest in the transferred loans other than mortgage servicing rights .
refer to note 9 goodwill and other intangible assets for further discussion on our residential and commercial mortgage servicing rights assets .
during 2009 , residential and commercial mortgage loans sold totaled $ 19.8 billion and $ 5.7 billion , respectively .
during 2008 , commercial mortgage loans sold totaled $ 3.1 billion .
there were no residential mortgage loans sales in 2008 as these activities were obtained through our acquisition of national city .
our continuing involvement in these loan sales consists primarily of servicing and limited repurchase obligations for loan and servicer breaches in representations and warranties .
generally , we hold a cleanup call repurchase option for loans sold with servicing retained to the other third-party investors .
in certain circumstances as servicer , we advance principal and interest payments to the gses and other third-party investors and also may make collateral protection advances .
our risk of loss in these servicing advances has historically been minimal .
we maintain a liability for estimated losses on loans expected to be repurchased as a result of breaches in loan and servicer representations and warranties .
we have also entered into recourse arrangements associated with commercial mortgage loans sold to fnma and fhlmc .
refer to note 25 commitments and guarantees for further discussion on our repurchase liability and recourse arrangements .
our maximum exposure to loss in our loan sale activities is limited to these repurchase and recourse obligations .
in addition , for certain loans transferred in the gnma and fnma transactions , we hold an option to repurchase individual delinquent loans that meet certain criteria .
without prior authorization from these gses , this option gives pnc the ability to repurchase the delinquent loan at par .
under gaap , once we have the unilateral ability to repurchase the delinquent loan , effective control over the loan has been regained and we are required to recognize the loan and a corresponding repurchase liability on the balance sheet regardless of our intent to repurchase the loan .
at december 31 , 2009 and december 31 , 2008 , the balance of our repurchase option asset and liability totaled $ 577 million and $ 476 million , respectively .
securitizations in securitizations , loans are typically transferred to a qualifying special purpose entity ( qspe ) that is demonstrably distinct from the transferor to transfer the risk from our consolidated balance sheet .
a qspe is a bankruptcy-remote trust allowed to perform only certain passive activities .
in addition , these entities are self-liquidating and in certain instances are structured as real estate mortgage investment conduits ( remics ) for tax purposes .
the qspes are generally financed by issuing certificates for various levels of senior and subordinated tranches .
qspes are exempt from consolidation provided certain conditions are met .
our securitization activities were primarily obtained through our acquisition of national city .
credit card receivables , automobile , and residential mortgage loans were securitized through qspes sponsored by ncb .
these qspes were financed primarily through the issuance and sale of beneficial interests to independent third parties and were not consolidated on our balance sheet at december 31 , 2009 or december 31 , 2008 .
however , see note 1 accounting policies regarding accounting guidance that impacts the accounting for these qspes effective january 1 , 2010 .
qualitative and quantitative information about the securitization qspes and our retained interests in these transactions follow .
the following summarizes the assets and liabilities of the securitization qspes associated with securitization transactions that were outstanding at december 31 , 2009. .

in millions  | december 31 2009 credit card | december 31 2009 mortgage | december 31 2009 credit card | mortgage
------------ | ---------------------------- | ------------------------- | ---------------------------- | --------
assets ( a ) | $ 2368                       | $ 232                     | $ 2129                       | $ 319
liabilities  | 1622                         | 232                       | 1824                         | 319

( a ) represents period-end outstanding principal balances of loans transferred to the securitization qspes .
credit card loans at december 31 , 2009 , the credit card securitization series 2005-1 , 2006-1 , 2007-1 , and 2008-3 were outstanding .
during the fourth quarter of 2009 , the 2008-1 and 2008-2 credit card securitization series matured .
our continuing involvement in the securitized credit card receivables consists primarily of servicing and our holding of certain retained interests .
servicing fees earned approximate current market rates for servicing fees ; therefore , no servicing asset or liability is recognized .
we hold a clean-up call repurchase option to the extent a securitization series extends past its scheduled note principal payoff date .
to the extent this occurs , the clean-up call option is triggered when the principal balance of the asset- backed notes of any series reaches 5% ( 5 % ) of the initial principal balance of the asset-backed notes issued at the securitization


part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities market information our common stock is listed and traded on the new york stock exchange under the symbol 201cipg 201d .
as of february 13 , 2019 , there were approximately 10000 registered holders of our outstanding common stock .
on february 13 , 2019 , we announced that our board of directors ( the 201cboard 201d ) had declared a common stock cash dividend of $ 0.235 per share , payable on march 15 , 2019 to holders of record as of the close of business on march 1 , 2019 .
although it is the board 2019s current intention to declare and pay future dividends , there can be no assurance that such additional dividends will in fact be declared and paid .
any and the amount of any such declaration is at the discretion of the board and will depend upon factors such as our earnings , financial position and cash requirements .
equity compensation plans see item 12 for information about our equity compensation plans .
transfer agent and registrar for common stock the transfer agent and registrar for our common stock is : computershare shareowner services llc 480 washington boulevard 29th floor jersey city , new jersey 07310 telephone : ( 877 ) 363-6398 sales of unregistered securities not applicable .
repurchases of equity securities the following table provides information regarding our purchases of our equity securities during the period from october 1 , 2018 to december 31 , 2018 .
total number of shares ( or units ) purchased 1 average price paid per share ( or unit ) 2 total number of shares ( or units ) purchased as part of publicly announced plans or programs 3 maximum number ( or approximate dollar value ) of shares ( or units ) that may yet be purchased under the plans or programs 3 .

                | total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( orapproximate dollar value ) of shares ( or units ) that may yet be purchasedunder the plans orprograms3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 3824                                          | $ 23.30                                   | 2014                                                                                | $ 338421933
november 1 - 30 | 1750                                          | $ 23.77                                   | 2014                                                                                | $ 338421933
december 1 - 31 | 2014                                          | 2014                                      | 2014                                                                                | $ 338421933
total           | 5574                                          | $ 23.45                                   | 2014                                                                                |

1 the total number of shares of our common stock , par value $ 0.10 per share , repurchased were withheld under the terms of grants under employee stock- based compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares ( the 201cwithheld shares 201d ) .
2 the average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing the sum in the applicable period of the aggregate value of the tax withholding obligations by the sum of the number of withheld shares .
3 in february 2017 , the board authorized a share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock ( the 201c2017 share repurchase program 201d ) .
in february 2018 , the board authorized a share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock , which was in addition to any amounts remaining under the 2017 share repurchase program .
on july 2 , 2018 , in connection with the announcement of the acxiom acquisition , we announced that share repurchases will be suspended for a period of time in order to reduce the increased debt levels incurred in conjunction with the acquisition , and no shares were repurchased pursuant to the share repurchase programs in the periods reflected .
there are no expiration dates associated with the share repurchase programs.


vornado realty trust notes to consolidated financial statements ( continued ) 17 .
leases as lessor : we lease space to tenants under operating leases .
most of the leases provide for the payment of fixed base rentals payable monthly in advance .
office building leases generally require the tenants to reimburse us for operating costs and real estate taxes above their base year costs .
shopping center leases provide for pass-through to tenants the tenant 2019s share of real estate taxes , insurance and maintenance .
shopping center leases also provide for the payment by the lessee of additional rent based on a percentage of the tenants 2019 sales .
as of december 31 , 2011 , future base rental revenue under non-cancelable operating leases , excluding rents for leases with an original term of less than one year and rents resulting from the exercise of renewal options , is as follows : ( amounts in thousands ) year ending december 31: .

2012       | $ 1807885
---------- | ---------
2013       | 1718403
2014       | 1609279
2015       | 1425804
2016       | 1232154
thereafter | 6045584

these amounts do not include percentage rentals based on tenants 2019 sales .
these percentage rents approximated $ 8482000 , $ 7912000 and $ 8394000 , for the years ended december 31 , 2011 , 2010 and 2009 , respectively .
none of our tenants accounted for more than 10% ( 10 % ) of total revenues in any of the years ended december 31 , 2011 , 2010 and 2009 .
former bradlees locations pursuant to a master agreement and guaranty , dated may 1 , 1992 , we are due $ 5000000 per annum of additional rent from stop & shop which was allocated to certain bradlees former locations .
on december 31 , 2002 , prior to the expiration of the leases to which the additional rent was allocated , we reallocated this rent to other former bradlees leases also guaranteed by stop & shop .
stop & shop is contesting our right to reallocate and claims that we are no longer entitled to the additional rent .
on november 7 , 2011 , the court determined that we have a continuing right to allocate the annual rent to unexpired leases covered by the master agreement and guaranty and directed entry of a judgment in our favor ordering stop & shop to pay us the unpaid annual rent ( see note 20 2013 commitments and contingencies 2013 litigation ) .
as of december 31 , 2011 , we have a $ 41983000 receivable from stop and shop.


part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the following table presents reported quarterly high and low per share sale prices of our common stock on the nyse for the years 2016 and 2015. .

2016                       | high     | low
-------------------------- | -------- | -------
quarter ended march 31     | $ 102.93 | $ 83.07
quarter ended june 30      | 113.63   | 101.87
quarter ended september 30 | 118.26   | 107.57
quarter ended december 31  | 118.09   | 99.72
2015                       | high     | low
quarter ended march 31     | $ 101.88 | $ 93.21
quarter ended june 30      | 98.64    | 91.99
quarter ended september 30 | 101.54   | 86.83
quarter ended december 31  | 104.12   | 87.23

on february 17 , 2017 , the closing price of our common stock was $ 108.11 per share as reported on the nyse .
as of february 17 , 2017 , we had 427195037 outstanding shares of common stock and 153 registered holders .
dividends as a reit , we must annually distribute to our stockholders an amount equal to at least 90% ( 90 % ) of our reit taxable income ( determined before the deduction for distributed earnings and excluding any net capital gain ) .
generally , we have distributed and expect to continue to distribute all or substantially all of our reit taxable income after taking into consideration our utilization of net operating losses ( 201cnols 201d ) .
we have two series of preferred stock outstanding , 5.25% ( 5.25 % ) mandatory convertible preferred stock , series a ( the 201cseries a preferred stock 201d ) , issued in may 2014 , with a dividend rate of 5.25% ( 5.25 % ) , and the 5.50% ( 5.50 % ) mandatory convertible preferred stock , series b ( the 201cseries b preferred stock 201d ) , issued in march 2015 , with a dividend rate of 5.50% ( 5.50 % ) .
dividends are payable quarterly in arrears , subject to declaration by our board of directors .
the amount , timing and frequency of future distributions will be at the sole discretion of our board of directors and will depend upon various factors , a number of which may be beyond our control , including our financial condition and operating cash flows , the amount required to maintain our qualification for taxation as a reit and reduce any income and excise taxes that we otherwise would be required to pay , limitations on distributions in our existing and future debt and preferred equity instruments , our ability to utilize nols to offset our distribution requirements , limitations on our ability to fund distributions using cash generated through our trss and other factors that our board of directors may deem relevant .
we have distributed an aggregate of approximately $ 3.2 billion to our common stockholders , including the dividend paid in january 2017 , primarily subject to taxation as ordinary income.


american tower corporation and subsidiaries notes to consolidated financial statements as of december 31 , 2010 , total unrecognized compensation expense related to unvested restricted stock units granted under the 2007 plan was $ 57.5 million and is expected to be recognized over a weighted average period of approximately two years .
employee stock purchase plan 2014the company maintains an employee stock purchase plan ( 201cespp 201d ) for all eligible employees .
under the espp , shares of the company 2019s common stock may be purchased during bi-annual offering periods at 85% ( 85 % ) of the lower of the fair market value on the first or the last day of each offering period .
employees may purchase shares having a value not exceeding 15% ( 15 % ) of their gross compensation during an offering period and may not purchase more than $ 25000 worth of stock in a calendar year ( based on market values at the beginning of each offering period ) .
the offering periods run from june 1 through november 30 and from december 1 through may 31 of each year .
during the 2010 , 2009 and 2008 offering periods employees purchased 75354 , 77509 and 55764 shares , respectively , at weighted average prices per share of $ 34.16 , $ 23.91 and $ 30.08 , respectively .
the fair value of the espp offerings is estimated on the offering period commencement date using a black-scholes pricing model with the expense recognized over the expected life , which is the six month offering period over which employees accumulate payroll deductions to purchase the company 2019s common stock .
the weighted average fair value for the espp shares purchased during 2010 , 2009 and 2008 was $ 9.43 , $ 6.65 and $ 7.89 , respectively .
at december 31 , 2010 , 8.7 million shares remain reserved for future issuance under the plan .
key assumptions used to apply this pricing model for the years ended december 31 , are as follows: .

                                                               | 2010                                    | 2009                                    | 2008
-------------------------------------------------------------- | --------------------------------------- | --------------------------------------- | ---------------------------------------
range of risk-free interest rate                               | 0.22% ( 0.22 % ) - 0.23% ( 0.23 % )     | 0.29% ( 0.29 % ) - 0.44% ( 0.44 % )     | 1.99% ( 1.99 % ) - 3.28% ( 3.28 % )
weighted average risk-free interest rate                       | 0.22% ( 0.22 % )                        | 0.38% ( 0.38 % )                        | 2.58% ( 2.58 % )
expected life of shares                                        | 6 months                                | 6 months                                | 6 months
range of expected volatility of underlying stock price         | 35.26% ( 35.26 % ) - 35.27% ( 35.27 % ) | 35.31% ( 35.31 % ) - 36.63% ( 36.63 % ) | 27.85% ( 27.85 % ) - 28.51% ( 28.51 % )
weighted average expected volatility of underlying stock price | 35.26% ( 35.26 % )                      | 35.83% ( 35.83 % )                      | 28.51% ( 28.51 % )
expected annual dividends                                      | n/a                                     | n/a                                     | n/a

13 .
stockholders 2019 equity warrants 2014in august 2005 , the company completed its merger with spectrasite , inc .
and assumed outstanding warrants to purchase shares of spectrasite , inc .
common stock .
as of the merger completion date , each warrant was exercisable for two shares of spectrasite , inc .
common stock at an exercise price of $ 32 per warrant .
upon completion of the merger , each warrant to purchase shares of spectrasite , inc .
common stock automatically converted into a warrant to purchase shares of the company 2019s common stock , such that upon exercise of each warrant , the holder has a right to receive 3.575 shares of the company 2019s common stock in lieu of each share of spectrasite , inc .
common stock that would have been receivable under each assumed warrant prior to the merger .
upon completion of the company 2019s merger with spectrasite , inc. , these warrants were exercisable for approximately 6.8 million shares of common stock .
of these warrants , warrants to purchase approximately none and 1.7 million shares of common stock remained outstanding as of december 31 , 2010 and 2009 , respectively .
these warrants expired on february 10 , 2010 .
stock repurchase program 2014during the year ended december 31 , 2010 , the company repurchased an aggregate of approximately 9.3 million shares of its common stock for an aggregate of $ 420.8 million , including commissions and fees , of which $ 418.6 million was paid in cash prior to december 31 , 2010 and $ 2.2 million was included in accounts payable and accrued expenses in the accompanying consolidated balance sheet as of december 31 , 2010 , pursuant to its publicly announced stock repurchase program , as described below.


awards .
awards granted under the 2006 plan prior to december 5 , 2008 became fully vested and nonforfeitable upon the closing of the merger .
awards may be granted under the 2006 plan , as amended and restated , after december 5 , 2008 only to employees and consultants of allied waste industries , inc .
and its subsidiaries who were not employed by republic services , inc .
prior to such date .
at december 31 , 2009 , there were approximately 15.3 million shares of common stock reserved for future grants under the 2006 plan .
stock options we use a lattice binomial option-pricing model to value our stock option grants .
we recognize compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award , or to the employee 2019s retirement eligible date , if earlier .
expected volatility is based on the weighted average of the most recent one-year volatility and a historical rolling average volatility of our stock over the expected life of the option .
the risk-free interest rate is based on federal reserve rates in effect for bonds with maturity dates equal to the expected term of the option .
we use historical data to estimate future option exercises , forfeitures and expected life of the options .
when appropriate , separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes .
the weighted- average estimated fair values of stock options granted during the years ended december 31 , 2009 , 2008 and 2007 were $ 3.79 , $ 4.36 and $ 6.49 per option , respectively , which were calculated using the following weighted-average assumptions: .

                              | 2009             | 2008             | 2007
----------------------------- | ---------------- | ---------------- | ----------------
expected volatility           | 28.7% ( 28.7 % ) | 27.3% ( 27.3 % ) | 23.5% ( 23.5 % )
risk-free interest rate       | 1.4% ( 1.4 % )   | 1.7% ( 1.7 % )   | 4.8% ( 4.8 % )
dividend yield                | 3.1% ( 3.1 % )   | 2.9% ( 2.9 % )   | 1.5% ( 1.5 % )
expected life ( in years )    | 4.2              | 4.2              | 4.0
contractual life ( in years ) | 7                | 7                | 7
expected forfeiture rate      | 3.0% ( 3.0 % )   | 3.0% ( 3.0 % )   | 5.0% ( 5.0 % )

republic services , inc .
and subsidiaries notes to consolidated financial statements , continued


eog utilized average prices per acre from comparable market transactions and estimated discounted cash flows as the basis for determining the fair value of unproved and proved properties , respectively , received in non-cash property exchanges .
see note 10 .
fair value of debt .
at december 31 , 2018 and 2017 , respectively , eog had outstanding $ 6040 million and $ 6390 million aggregate principal amount of senior notes , which had estimated fair values of approximately $ 6027 million and $ 6602 million , respectively .
the estimated fair value of debt was based upon quoted market prices and , where such prices were not available , other observable ( level 2 ) inputs regarding interest rates available to eog at year-end .
14 .
accounting for certain long-lived assets eog reviews its proved oil and gas properties for impairment purposes by comparing the expected undiscounted future cash flows at a depreciation , depletion and amortization group level to the unamortized capitalized cost of the asset .
the carrying values for assets determined to be impaired were adjusted to estimated fair value using the income approach described in the fair value measurement topic of the asc .
in certain instances , eog utilizes accepted offers from third-party purchasers as the basis for determining fair value .
during 2018 , proved oil and gas properties with a carrying amount of $ 139 million were written down to their fair value of $ 18 million , resulting in pretax impairment charges of $ 121 million .
during 2017 , proved oil and gas properties with a carrying amount of $ 370 million were written down to their fair value of $ 146 million , resulting in pretax impairment charges of $ 224 million .
impairments in 2018 , 2017 and 2016 included domestic legacy natural gas assets .
amortization and impairments of unproved oil and gas property costs , including amortization of capitalized interest , were $ 173 million , $ 211 million and $ 291 million during 2018 , 2017 and 2016 , respectively .
15 .
asset retirement obligations the following table presents the reconciliation of the beginning and ending aggregate carrying amounts of short-term and long-term legal obligations associated with the retirement of property , plant and equipment for the years ended december 31 , 2018 and 2017 ( in thousands ) : .

                                       | 2018             | 2017
-------------------------------------- | ---------------- | ----------------
carrying amount at beginning of period | $ 946848         | $ 912926
liabilities incurred                   | 79057            | 54764
liabilities settled ( 1 )              | -70829 ( 70829 ) | -61871 ( 61871 )
accretion                              | 36622            | 34708
revisions                              | -38932 ( 38932 ) | -9818 ( 9818 )
foreign currency translations          | 1611             | 16139
carrying amount at end of period       | $ 954377         | $ 946848
current portion                        | $ 26214          | $ 19259
noncurrent portion                     | $ 928163         | $ 927589

( 1 ) includes settlements related to asset sales .
the current and noncurrent portions of eog's asset retirement obligations are included in current liabilities - other and other liabilities , respectively , on the consolidated balance sheets.


performance graph comparison of five-year cumulative total return the following graph and table compare the cumulative total return on citi 2019s common stock , which is listed on the nyse under the ticker symbol 201cc 201d and held by 65691 common stockholders of record as of january 31 , 2018 , with the cumulative total return of the s&p 500 index and the s&p financial index over the five-year period through december 31 , 2017 .
the graph and table assume that $ 100 was invested on december 31 , 2012 in citi 2019s common stock , the s&p 500 index and the s&p financial index , and that all dividends were reinvested .
comparison of five-year cumulative total return for the years ended date citi s&p 500 financials .

date        | citi  | s&p 500 | s&p financials
----------- | ----- | ------- | --------------
31-dec-2012 | 100.0 | 100.0   | 100.0
31-dec-2013 | 131.8 | 132.4   | 135.6
31-dec-2014 | 137.0 | 150.5   | 156.2
31-dec-2015 | 131.4 | 152.6   | 153.9
31-dec-2016 | 152.3 | 170.8   | 188.9
31-dec-2017 | 193.5 | 208.1   | 230.9


notes to the consolidated financial statements competitive environment and general economic and business conditions , among other factors .
pullmantur is a brand targeted primarily at the spanish , portu- guese and latin american markets and although pullmantur has diversified its passenger sourcing over the past few years , spain still represents pullmantur 2019s largest market .
as previously disclosed , during 2012 european economies continued to demonstrate insta- bility in light of heightened concerns over sovereign debt issues as well as the impact of proposed auster- ity measures on certain markets .
the spanish econ- omy was more severely impacted than many other economies and there is significant uncertainty as to when it will recover .
in addition , the impact of the costa concordia incident has had a more lingering effect than expected and the impact in future years is uncertain .
these factors were identified in the past as significant risks which could lead to the impairment of pullmantur 2019s goodwill .
more recently , the spanish economy has progressively worsened and forecasts suggest the challenging operating environment will continue for an extended period of time .
the unemployment rate in spain reached 26% ( 26 % ) during the fourth quarter of 2012 and is expected to rise further in 2013 .
the international monetary fund , which had projected gdp growth of 1.8% ( 1.8 % ) a year ago , revised its 2013 gdp projections downward for spain to a contraction of 1.3% ( 1.3 % ) during the fourth quarter of 2012 and further reduced it to a contraction of 1.5% ( 1.5 % ) in january of 2013 .
during the latter half of 2012 new austerity measures , such as increases to the value added tax , cuts to benefits , the phasing out of exemptions and the suspension of government bonuses , were implemented by the spanish government .
we believe these austerity measures are having a larger impact on consumer confidence and discretionary spending than previously anticipated .
as a result , there has been a significant deterioration in bookings from guests sourced from spain during the 2013 wave season .
the combination of all of these factors has caused us to negatively adjust our cash flow projections , especially our closer-in net yield assumptions and the expectations regarding future capacity growth for the brand .
based on our updated cash flow projections , we determined the implied fair value of goodwill for the pullmantur reporting unit was $ 145.5 million and rec- ognized an impairment charge of $ 319.2 million .
this impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impairment of pullmantur related assets within our consolidated statements of comprehensive income ( loss ) .
there have been no goodwill impairment charges related to the pullmantur reporting unit in prior periods .
see note 13 .
fair value measurements and derivative instruments for further discussion .
if the spanish economy weakens further or recovers more slowly than contemplated or if the economies of other markets ( e.g .
france , brazil , latin america ) perform worse than contemplated in our discounted cash flow model , or if there are material changes to the projected future cash flows used in the impair- ment analyses , especially in net yields , an additional impairment charge of the pullmantur reporting unit 2019s goodwill may be required .
note 4 .
intangible assets intangible assets are reported in other assets in our consolidated balance sheets and consist of the follow- ing ( in thousands ) : .

                                                                           | 2012             | 2011
-------------------------------------------------------------------------- | ---------------- | --------------
indefinite-life intangible asset 2014pullmantur trademarks and trade names | $ 218883         | $ 225679
impairment charge                                                          | -17356 ( 17356 ) | 2014
foreign currency translation adjustment                                    | 3339             | -6796 ( 6796 )
total                                                                      | $ 204866         | $ 218883

during the fourth quarter of 2012 , we performed the annual impairment review of our trademarks and trade names using a discounted cash flow model and the relief-from-royalty method .
the royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry .
these trademarks and trade names relate to pullmantur and we have used a discount rate comparable to the rate used in valuing the pullmantur reporting unit in our goodwill impairment test .
as described in note 3 .
goodwill , the continued deterioration of the spanish economy caused us to negatively adjust our cash flow projections for the pullmantur reporting unit , especially our closer-in net yield assumptions and the timing of future capacity growth for the brand .
based on our updated cash flow projections , we determined that the fair value of pullmantur 2019s trademarks and trade names no longer exceeded their carrying value .
accordingly , we recog- nized an impairment charge of approximately $ 17.4 million to write down trademarks and trade names to their fair value of $ 204.9 million .
this impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impairment of pullmantur related assets within our consolidated statements of comprehensive income ( loss ) .
see note 13 .
fair value measurements and derivative instruments for further discussion .
if the spanish economy weakens further or recovers more slowly than contemplated or if the economies of other markets ( e.g .
france , brazil , latin america ) 0494.indd 76 3/27/13 12:53 pm


abiomed , inc .
and subsidiaries notes to consolidated financial statements 2014 ( continued ) note 14 .
income taxes ( continued ) and transition and defines the criteria that must be met for the benefits of a tax position to be recognized .
as a result of its adoption of fin no .
48 , the company has recorded the cumulative effect of the change in accounting principle of $ 0.3 million as a decrease to opening retained earnings and an increase to other long-term liabilities as of april 1 , 2007 .
this adjustment relates to state nexus for failure to file tax returns in various states for the years ended march 31 , 2003 , 2004 , and 2005 .
the company has initiated a voluntary disclosure plan .
the company has elected to recognize interest and/or penalties related to income tax matters in income tax expense in its consolidated statements of operations .
as of april 1 , 2007 , accrued interest was not significant and was recorded as part of the $ 0.3 million adjustment to the opening balance of retained earnings .
as of march 31 , 2008 , no penalties have been accrued which is consistent with the company 2019s discussions with states in connection with the company 2019s voluntary disclosure plan .
on a quarterly basis , the company accrues for the effects of uncertain tax positions and the related potential penalties and interest .
the company has recorded a liability for unrecognized tax benefits in other liabilities including accrued interest , of $ 0.2 million at march 31 , 2008 .
it is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the unrecognized tax positions will increase or decrease during the next 12 months ; however , it is not expected that the change will have a significant effect on the company 2019s results of operations or financial position .
a reconciliation of the beginning and ending balance of unrecognized tax benefits , excluding accrued interest recorded at march 31 , 2008 ( in thousands ) is as follows: .

balance at april 1 2007                                                           | $ 224
--------------------------------------------------------------------------------- | ----------
reductions for tax positions for closing of the applicable statute of limitations | -56 ( 56 )
balance at march 31 2008                                                          | $ 168

the company and its subsidiaries are subject to u.s .
federal income tax , as well as income tax of multiple state and foreign jurisdictions .
the company has accumulated significant losses since its inception in 1981 .
all tax years remain subject to examination by major tax jurisdictions , including the federal government and the commonwealth of massachusetts .
however , since the company has net operating loss and tax credit carry forwards which may be utilized in future years to offset taxable income , those years may also be subject to review by relevant taxing authorities if the carry forwards are utilized .
note 15 .
commitments and contingencies the company 2019s acquisition of impella provides that abiomed may be required to make additional contingent payments to impella 2019s former shareholders as follows : 2022 upon fda approval of the impella 2.5 device , a payment of $ 5583333 , and 2022 upon fda approval of the impella 5.0 device , a payment of $ 5583333 if the average market price per share of abiomed 2019s common stock , as determined in accordance with the purchase agreement , as of the date of one of these milestones is achieved is $ 22 or more , no additional contingent consideration will be required with respect to that milestone .
if the average market price is between $ 18 and $ 22 on the date of the company 2019s achievement of a milestone , the relevant milestone payment will be reduced ratably .
these milestone payments may be made , at the company 2019s option , with cash or stock or by a combination of cash or stock , except that no more than an aggregate of approximately $ 9.4 million of these milestone payments may be made in the form of stock .
if any of these contingent payments are made , they will result in an increase in the carrying value of goodwill .
in june 2008 , the company received 510 ( k ) clearance of its impella 2.5 , triggering an obligation to pay $ 5.6 million of contingent payments related to the may 2005 acquisition of impella .
these contingent payments may be made , at the company 2019s option , with cash , or stock or by a combination of cash or stock under circumstances described in the purchase agreement related to the company 2019s impella acquisition , except that approximately $ 1.8 million of the remaining $ 11.2 million potential contingent payments must be made in cash .
it is the company 2019s intent to satisfy the impella 2.5 510 ( k ) clearance contingent payment through issuance of common shares of company stock.


contributions and expected benefit payments the funding of our qualified defined benefit pension plans is determined in accordance with erisa , as amended by the ppa , and in a manner consistent with cas and internal revenue code rules .
there were no contributions to our legacy qualified defined benefit pension plans during 2016 .
we do not plan to make contributions to our legacy pension plans in 2017 because none are required using current assumptions including investment returns on plan assets .
we made $ 23 million in contributions during 2016 to our newly established sikorsky pension plan and expect to make $ 45 million in contributions to this plan during 2017 .
the following table presents estimated future benefit payments , which reflect expected future employee service , as of december 31 , 2016 ( in millions ) : .

                                         | 2017   | 2018   | 2019   | 2020   | 2021   | 2022 2013 2026
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | --------------
qualified defined benefit pension plans  | $ 2260 | $ 2340 | $ 2420 | $ 2510 | $ 2590 | $ 13920
retiree medical and life insurance plans | 180    | 180    | 190    | 190    | 190    | 870

defined contribution plans we maintain a number of defined contribution plans , most with 401 ( k ) features , that cover substantially all of our employees .
under the provisions of our 401 ( k ) plans , we match most employees 2019 eligible contributions at rates specified in the plan documents .
our contributions were $ 617 million in 2016 , $ 393 million in 2015 and $ 385 million in 2014 , the majority of which were funded in our common stock .
our defined contribution plans held approximately 36.9 million and 40.0 million shares of our common stock as of december 31 , 2016 and 2015 .
note 12 2013 stockholders 2019 equity at december 31 , 2016 and 2015 , our authorized capital was composed of 1.5 billion shares of common stock and 50 million shares of series preferred stock .
of the 290 million shares of common stock issued and outstanding as of december 31 , 2016 , 289 million shares were considered outstanding for consolidated balance sheet presentation purposes ; the remaining shares were held in a separate trust .
of the 305 million shares of common stock issued and outstanding as of december 31 , 2015 , 303 million shares were considered outstanding for consolidated balance sheet presentation purposes ; the remaining shares were held in a separate trust .
no shares of preferred stock were issued and outstanding at december 31 , 2016 or 2015 .
repurchases of common stock during 2016 , we repurchased 8.9 million shares of our common stock for $ 2.1 billion .
during 2015 and 2014 , we paid $ 3.1 billion and $ 1.9 billion to repurchase 15.2 million and 11.5 million shares of our common stock .
on september 22 , 2016 , our board of directors approved a $ 2.0 billion increase to our share repurchase program .
inclusive of this increase , the total remaining authorization for future common share repurchases under our program was $ 3.5 billion as of december 31 , 2016 .
as we repurchase our common shares , we reduce common stock for the $ 1 of par value of the shares repurchased , with the excess purchase price over par value recorded as a reduction of additional paid-in capital .
due to the volume of repurchases made under our share repurchase program , additional paid-in capital was reduced to zero , with the remainder of the excess purchase price over par value of $ 1.7 billion and $ 2.4 billion recorded as a reduction of retained earnings in 2016 and 2015 .
we paid dividends totaling $ 2.0 billion ( $ 6.77 per share ) in 2016 , $ 1.9 billion ( $ 6.15 per share ) in 2015 and $ 1.8 billion ( $ 5.49 per share ) in 2014 .
we have increased our quarterly dividend rate in each of the last three years , including a 10% ( 10 % ) increase in the quarterly dividend rate in the fourth quarter of 2016 .
we declared quarterly dividends of $ 1.65 per share during each of the first three quarters of 2016 and $ 1.82 per share during the fourth quarter of 2016 ; $ 1.50 per share during each of the first three quarters of 2015 and $ 1.65 per share during the fourth quarter of 2015 ; and $ 1.33 per share during each of the first three quarters of 2014 and $ 1.50 per share during the fourth quarter of 2014.


entergy mississippi , inc .
management's financial discussion and analysis the net wholesale revenue variance is primarily due to lower profit on joint account sales and reduced capacity revenue from the municipal energy agency of mississippi .
gross operating revenues , fuel and purchased power expenses , and other regulatory charges gross operating revenues increased primarily due to an increase of $ 152.5 million in fuel cost recovery revenues due to higher fuel rates , partially offset by a decrease of $ 43 million in gross wholesale revenues due to a decrease in net generation and purchases in excess of decreased net area demand resulting in less energy available for resale sales coupled with a decrease in system agreement remedy receipts .
fuel and purchased power expenses increased primarily due to increases in the average market prices of natural gas and purchased power , partially offset by decreased demand and decreased recovery from customers of deferred fuel costs .
other regulatory charges increased primarily due to increased recovery through the grand gulf rider of grand gulf capacity costs due to higher rates and increased recovery of costs associated with the power management recovery rider .
there is no material effect on net income due to quarterly adjustments to the power management recovery rider .
2007 compared to 2006 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2007 to 2006 .
amount ( in millions ) .

                          | amount ( in millions )
------------------------- | ----------------------
2006 net revenue          | $ 466.1
base revenue              | 7.9
volume/weather            | 4.5
transmission revenue      | 4.1
transmission equalization | 4.0
reserve equalization      | 3.8
attala costs              | -10.2 ( 10.2 )
other                     | 6.7
2007 net revenue          | $ 486.9

the base revenue variance is primarily due to a formula rate plan increase effective july 2007 .
the formula rate plan filing is discussed further in "state and local rate regulation" below .
the volume/weather variance is primarily due to increased electricity usage primarily in the residential and commercial sectors , including the effect of more favorable weather on billed electric sales in 2007 compared to 2006 .
billed electricity usage increased 214 gwh .
the increase in usage was partially offset by decreased usage in the industrial sector .
the transmission revenue variance is due to higher rates and the addition of new transmission customers in late 2006 .
the transmission equalization variance is primarily due to a revision made in 2006 of transmission equalization receipts among entergy companies .
the reserve equalization variance is primarily due to a revision in 2006 of reserve equalization payments among entergy companies due to a ferc ruling regarding the inclusion of interruptible loads in reserve


table of contents ( 4 ) the increase in cash flows was primarily due to the timing of inventory purchases and longer payment terms with certain vendors .
in order to manage our working capital and operating cash needs , we monitor our cash conversion cycle , defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable , based on a rolling three-month average .
components of our cash conversion cycle are as follows: .

( in days )                                 | december 31 , 2017 | december 31 , 2016 | december 31 , 2015
------------------------------------------- | ------------------ | ------------------ | ------------------
days of sales outstanding ( dso ) ( 1 )     | 52                 | 51                 | 48
days of supply in inventory ( dio ) ( 2 )   | 12                 | 12                 | 13
days of purchases outstanding ( dpo ) ( 3 ) | -45 ( 45 )         | -44 ( 44 )         | -40 ( 40 )
cash conversion cycle                       | 19                 | 19                 | 21

( 1 ) represents the rolling three-month average of the balance of accounts receivable , net at the end of the period , divided by average daily net sales for the same three-month period .
also incorporates components of other miscellaneous receivables .
( 2 ) represents the rolling three-month average of the balance of merchandise inventory at the end of the period divided by average daily cost of sales for the same three-month period .
( 3 ) represents the rolling three-month average of the combined balance of accounts payable-trade , excluding cash overdrafts , and accounts payable-inventory financing at the end of the period divided by average daily cost of sales for the same three-month period .
the cash conversion cycle was 19 days at december 31 , 2017 and 2016 .
the increase in dso was primarily driven by higher net sales and related accounts receivable for third-party services such as saas , software assurance and warranties .
these services have an unfavorable impact on dso as the receivable is recognized on the consolidated balance sheet on a gross basis while the corresponding sales amount in the consolidated statement of operations is recorded on a net basis .
this also results in a favorable impact on dpo as the payable is recognized on the consolidated balance sheet without a corresponding cost of sales in the statement of operations because the cost paid to the vendor or third-party service provider is recorded as a reduction to net sales .
in addition , dpo also increased due to the mix of payables with certain vendors that have longer payment terms .
the cash conversion cycle was 19 and 21 days at december 31 , 2016 and 2015 , respectively .
the increase in dso was primarily driven by higher net sales and related accounts receivable for third-party services such as saas , software assurance and warranties .
these services have an unfavorable impact on dso as the receivable is recognized on the balance sheet on a gross basis while the corresponding sales amount in the statement of operations is recorded on a net basis .
these services have a favorable impact on dpo as the payable is recognized on the balance sheet without a corresponding cost of sale in the statement of operations because the cost paid to the vendor or third-party service provider is recorded as a reduction to net sales .
in addition to the impact of these services on dpo , dpo also increased due to the mix of payables with certain vendors that have longer payment terms .
investing activities net cash used in investing activities increased $ 15 million in 2017 compared to 2016 .
capital expenditures increased $ 17 million to $ 81 million from $ 64 million for 2017 and 2016 , respectively , primarily related to improvements to our information technology systems .
net cash used in investing activities decreased $ 289 million in 2016 compared to 2015 .
the decrease in cash used was primarily due to the completion of the acquisition of cdw uk in 2015 .
additionally , capital expenditures decreased $ 26 million to $ 64 million from $ 90 million for 2016 and 2015 , respectively , primarily due to spending for our new office location in 2015 .
financing activities net cash used in financing activities increased $ 514 million in 2017 compared to 2016 .
the increase was primarily driven by changes in accounts payable-inventory financing , which resulted in an increase in cash used for financing activities of $ 228 million and by share repurchases during 2017 , which resulted in an increase in cash used for financing activities of $ 167 million .
for more information on our share repurchase program , see part ii , item 5 , 201cmarket for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities . 201d the increase in cash used for accounts payable-inventory financing was primarily driven by the termination of one of our inventory financing agreements in the fourth quarter of 2016 , with amounts


table of contents ( e ) other adjustments primarily include certain historical retention costs , unusual , non-recurring litigation matters , secondary-offering-related expenses and expenses related to the consolidation of office locations north of chicago .
during the year ended december 31 , 2013 , we recorded ipo- and secondary-offering related expenses of $ 75.0 million .
for additional information on the ipo- and secondary-offering related expenses , see note 10 ( stockholder 2019s equity ) to the accompanying consolidated financial statements .
( f ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 2019s financial results .
( 4 ) non-gaap net income excludes , among other things , charges related to the amortization of acquisition-related intangible assets , non-cash equity-based compensation , acquisition and integration expenses , and gains and losses from the extinguishment of long-term debt .
non-gaap net income is considered a non-gaap financial measure .
generally , a non-gaap financial measure is a numerical measure of a company 2019s performance , financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with gaap .
non-gaap measures used by us may differ from similar measures used by other companies , even when similar terms are used to identify such measures .
we believe that non-gaap net income provides meaningful information regarding our operating performance and cash flows including our ability to meet our future debt service , capital expenditures and working capital requirements .
the following unaudited table sets forth a reconciliation of net income to non-gaap net income for the periods presented: .

( in millions )                                                       | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
--------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income                                                            | $ 403.1                        | $ 244.9                        | $ 132.8                        | $ 119.0                        | $ 17.1
amortization of intangibles ( a )                                     | 173.9                          | 161.2                          | 161.2                          | 163.7                          | 165.7
non-cash equity-based compensation                                    | 31.2                           | 16.4                           | 8.6                            | 22.1                           | 19.5
non-cash equity-based compensation related to equity investment ( b ) | 20.0                           | 2014                           | 2014                           | 2014                           | 2014
net loss on extinguishments of long-term debt                         | 24.3                           | 90.7                           | 64.0                           | 17.2                           | 118.9
acquisition and integration expenses ( c )                            | 10.2                           | 2014                           | 2014                           | 2014                           | 2014
gain on remeasurement of equity investment ( d )                      | -98.1 ( 98.1 )                 | 2014                           | 2014                           | 2014                           | 2014
other adjustments ( e )                                               | 3.7                            | -0.3 ( 0.3 )                   | 61.2                           | -3.3 ( 3.3 )                   | -15.6 ( 15.6 )
aggregate adjustment for income taxes ( f )                           | -64.8 ( 64.8 )                 | -103.0 ( 103.0 )               | -113.5 ( 113.5 )               | -71.6 ( 71.6 )                 | -106.8 ( 106.8 )
non-gaap net income ( g )                                             | $ 503.5                        | $ 409.9                        | $ 314.3                        | $ 247.1                        | $ 198.8

acquisition and integration expenses ( c ) 10.2 2014 2014 2014 2014 gain on remeasurement of equity investment ( d ) ( 98.1 ) 2014 2014 2014 2014 other adjustments ( e ) 3.7 ( 0.3 ) 61.2 ( 3.3 ) ( 15.6 ) aggregate adjustment for income taxes ( f ) ( 64.8 ) ( 103.0 ) ( 113.5 ) ( 71.6 ) ( 106.8 ) non-gaap net income ( g ) $ 503.5 $ 409.9 $ 314.3 $ 247.1 $ 198.8 ( a ) includes amortization expense for acquisition-related intangible assets , primarily customer relationships , customer contracts and trade names .
( b ) represents our 35% ( 35 % ) share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to our acquisition of kelway .
( c ) primarily includes expenses related to the acquisition of kelway .
( d ) represents the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway .
( e ) primarily includes expenses related to the consolidation of office locations north of chicago and secondary- offering-related expenses .
amount in 2013 primarily relates to ipo- and secondary-offering related expenses .
( f ) based on a normalized effective tax rate of 38.0% ( 38.0 % ) ( 39.0% ( 39.0 % ) prior to the kelway acquisition ) , except for the non- cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway , which were tax effected at a rate of 35.4% ( 35.4 % ) .
the aggregate adjustment for income taxes also includes a $ 4.0 million deferred tax benefit recorded during the three months and year ended december 31 , 2015 as a result of a tax rate reduction in the united kingdom and additional tax expense during the year ended december 31 , 2015 of $ 3.3 million as a result of recording withholding tax on the unremitted earnings of our canadian subsidiary .
additionally , note that certain acquisition costs are non-deductible.


management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) liquidity and capital resources cash flow overview the following tables summarize key financial data relating to our liquidity , capital resources and uses of capital. .

cash flow data                                                                 | years ended december 31 , 2018 | years ended december 31 , 2017 | years ended december 31 , 2016
------------------------------------------------------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile to net cash provided by operating activities1 | $ 1013.0                       | $ 852.1                        | $ 1018.6
net cash ( used in ) provided by working capital2                              | -431.1 ( 431.1 )               | 5.3                            | -410.3 ( 410.3 )
changes in other non-current assets and liabilities                            | -16.8 ( 16.8 )                 | 24.4                           | -95.5 ( 95.5 )
net cash provided by operating activities                                      | $ 565.1                        | $ 881.8                        | $ 512.8
net cash used in investing activities                                          | -2491.5 ( 2491.5 )             | -196.2 ( 196.2 )               | -263.9 ( 263.9 )
net cash provided by ( used in ) financing activities                          | 1853.2                         | -1004.9 ( 1004.9 )             | -666.4 ( 666.4 )

1 reflects net income adjusted primarily for depreciation and amortization of fixed assets and intangible assets , amortization of restricted stock and other non-cash compensation , net losses on sales of businesses and deferred income taxes .
2 reflects changes in accounts receivable , accounts receivable billable to clients , other current assets , accounts payable and accrued liabilities .
operating activities due to the seasonality of our business , we typically use cash from working capital in the first nine months of a year , with the largest impact in the first quarter , and generate cash from working capital in the fourth quarter , driven by the seasonally strong media spending by our clients .
quarterly and annual working capital results are impacted by the fluctuating annual media spending budgets of our clients as well as their changing media spending patterns throughout each year across various countries .
the timing of media buying on behalf of our clients across various countries affects our working capital and operating cash flow and can be volatile .
in most of our businesses , our agencies enter into commitments to pay production and media costs on behalf of clients .
to the extent possible , we pay production and media charges after we have received funds from our clients .
the amounts involved , which substantially exceed our revenues , primarily affect the level of accounts receivable , accounts payable , accrued liabilities and contract liabilities .
our assets include both cash received and accounts receivable from clients for these pass-through arrangements , while our liabilities include amounts owed on behalf of clients to media and production suppliers .
our accrued liabilities are also affected by the timing of certain other payments .
for example , while annual cash incentive awards are accrued throughout the year , they are generally paid during the first quarter of the subsequent year .
net cash provided by operating activities during 2018 was $ 565.1 , which was a decrease of $ 316.7 as compared to 2017 , primarily as a result of an increase in working capital usage of $ 436.4 .
working capital in 2018 was impacted by the spending levels of our clients as compared to 2017 .
the working capital usage in both periods was primarily attributable to our media businesses .
net cash provided by operating activities during 2017 was $ 881.8 , which was an increase of $ 369.0 as compared to 2016 , primarily as a result of an improvement in working capital usage of $ 415.6 .
working capital in 2017 benefited from the spending patterns of our clients compared to 2016 .
investing activities net cash used in investing activities during 2018 consisted of payments for acquisitions of $ 2309.8 , related mostly to the acxiom acquisition , and payments for capital expenditures of $ 177.1 , related mostly to leasehold improvements and computer hardware and software.


the company had capital loss carryforwards for federal income tax purposes of $ 3844 and $ 4357 at december 31 , 2013 and 2012 , respectively .
the company has recognized a full valuation allowance for the capital loss carryforwards because the company does not believe these losses are more likely than not to be recovered .
the company files income tax returns in the united states federal jurisdiction and various state and foreign jurisdictions .
with few exceptions , the company is no longer subject to u.s .
federal , state or local or non-u.s income tax examinations by tax authorities for years before 2007 .
the company has state income tax examinations in progress and does not expect material adjustments to result .
the patient protection and affordable care act ( the 201cppaca 201d ) became law on march 23 , 2010 , and the health care and education reconciliation act of 2010 became law on march 30 , 2010 , which makes various amendments to certain aspects of the ppaca ( together , the 201cacts 201d ) .
the ppaca effectively changes the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under medicare part d .
the acts effectively make the subsidy payments taxable in tax years beginning after december 31 , 2012 and as a result , the company followed its original accounting for the underfunded status of the other postretirement benefits for the medicare part d adjustment and recorded a reduction in deferred tax assets and an increase in its regulatory assets amounting to $ 6241 and $ 6432 at december 31 , 2013 and 2012 , respectively .
the following table summarizes the changes in the company 2019s gross liability , excluding interest and penalties , for unrecognized tax benefits: .

balance at january 1 2012                              | $ 158578
------------------------------------------------------ | ----------------
increases in current period tax positions              | 40620
decreases in prior period measurement of tax positions | -18205 ( 18205 )
balance at december 31 2012                            | $ 180993
increases in current period tax positions              | 27229
decreases in prior period measurement of tax positions | -30275 ( 30275 )
balance at december 31 2013                            | $ 177947

during the second quarter of 2013 , the company adopted updated income tax guidance , and as a result , reclassified as of december 31 , 2012 $ 74360 of unrecognized tax benefit from other long-term liabilities to deferred income taxes to conform to the current presentation in the accompanying consolidated balance sheets .
the total balance in the table above does not include interest and penalties of $ 242 and $ 260 as of december 31 , 2013 and 2012 , respectively , which is recorded as a component of income tax expense .
the majority of the increased tax position is attributable to temporary differences .
the increase in 2013 current period tax positions related primarily to the company 2019s change in tax accounting method filed in 2008 for repair and maintenance costs on its utility assets .
the company does not anticipate material changes to its unrecognized tax benefits within the next year .
if the company sustains all of its positions at december 31 , 2013 and 2012 , an unrecognized tax benefit of $ 7439 and $ 7532 , respectively , excluding interest and penalties , would impact the company 2019s effective tax rate.


mastercard incorporated notes to consolidated financial statements 2014continued in september 2010 , the company 2019s board of directors authorized a plan for the company to repurchase up to $ 1 billion of its class a common stock in open market transactions .
the company did not repurchase any shares under this plan during 2010 .
as of february 16 , 2011 , the company had completed the repurchase of approximately 0.3 million shares of its class a common stock at a cost of approximately $ 75 million .
note 18 .
share based payment and other benefits in may 2006 , the company implemented the mastercard incorporated 2006 long-term incentive plan , which was amended and restated as of october 13 , 2008 ( the 201cltip 201d ) .
the ltip is a shareholder-approved omnibus plan that permits the grant of various types of equity awards to employees .
the company has granted restricted stock units ( 201crsus 201d ) , non-qualified stock options ( 201coptions 201d ) and performance stock units ( 201cpsus 201d ) under the ltip .
the rsus generally vest after three to four years .
the options , which expire ten years from the date of grant , generally vest ratably over four years from the date of grant .
the psus generally vest after three years .
additionally , the company made a one-time grant to all non-executive management employees upon the ipo for a total of approximately 440 thousand rsus ( the 201cfounders 2019 grant 201d ) .
the founders 2019 grant rsus vested three years from the date of grant .
the company uses the straight-line method of attribution for expensing equity awards .
compensation expense is recorded net of estimated forfeitures .
estimates are adjusted as appropriate .
upon termination of employment , excluding retirement , all of a participant 2019s unvested awards are forfeited .
however , when a participant terminates employment due to retirement , the participant generally retains all of their awards without providing additional service to the company .
eligible retirement is dependent upon age and years of service , as follows : age 55 with ten years of service , age 60 with five years of service and age 65 with two years of service .
compensation expense is recognized over the shorter of the vesting periods stated in the ltip , or the date the individual becomes eligible to retire .
there are 11550000 shares of class a common stock reserved for equity awards under the ltip .
although the ltip permits the issuance of shares of class b common stock , no such shares have been reserved for issuance .
shares issued as a result of option exercises and the conversions of rsus and psus are expected to be funded primarily with the issuance of new shares of class a common stock .
stock options the fair value of each option is estimated on the date of grant using a black-scholes option pricing model .
the following table presents the weighted-average assumptions used in the valuation and the resulting weighted- average fair value per option granted for the years ended december 31: .

                                               | 2010             | 2009             | 2008
---------------------------------------------- | ---------------- | ---------------- | ----------------
risk-free rate of return                       | 2.7% ( 2.7 % )   | 2.5% ( 2.5 % )   | 3.2% ( 3.2 % )
expected term ( in years )                     | 6.25             | 6.17             | 6.25
expected volatility                            | 32.7% ( 32.7 % ) | 41.7% ( 41.7 % ) | 37.9% ( 37.9 % )
expected dividend yield                        | 0.3% ( 0.3 % )   | 0.4% ( 0.4 % )   | 0.3% ( 0.3 % )
weighted-average fair value per option granted | $ 84.62          | $ 71.03          | $ 78.54

the risk-free rate of return was based on the u.s .
treasury yield curve in effect on the date of grant .
the company utilizes the simplified method for calculating the expected term of the option based on the vesting terms and the contractual life of the option .
the expected volatility for options granted during 2010 and 2009 was based on the average of the implied volatility of mastercard and a blend of the historical volatility of mastercard and the historical volatility of a group of companies that management believes is generally comparable to


likely than not that some portion or all of the deferred tax assets will not be realized .
the accruals for deferred tax assets and liabilities are subject to a significant amount of judgment by management and are reviewed and adjusted routinely based on changes in facts and circumstances .
material changes in these accruals may occur in the future , based on the progress of ongoing tax audits , changes in legislation and resolution of pending tax matters .
forward-looking estimates we are providing our 2011 forward-looking estimates in this section .
these estimates were based on our examination of historical operating trends , the information used to prepare our december 31 , 2010 , reserve reports and other data in our possession or available from third parties .
the forward-looking estimates in this report were prepared assuming demand , curtailment , producibility and general market conditions for our oil , gas and ngls during 2011 will be similar to 2010 , unless otherwise noted .
we make reference to the 201cdisclosure regarding forward-looking statements 201d at the beginning of this report .
amounts related to our canadian operations have been converted to u.s .
dollars using an estimated average 2011 exchange rate of $ 0.95 dollar to $ 1.00 canadian dollar .
during 2011 , our operations are substantially comprised of our ongoing north america onshore operations .
we also have international operations in brazil and angola that we are divesting .
we have entered into agreements to sell our assets in brazil for $ 3.2 billion and our assets in angola for $ 70 million , plus contingent consideration .
as a result of these divestitures , all revenues , expenses and capital related to our international operations are reported as discontinued operations in our financial statements .
additionally , all forward-looking estimates in this document exclude amounts related to our international operations , unless otherwise noted .
north america onshore operating items the following 2011 estimates relate only to our north america onshore assets .
oil , gas and ngl production set forth below are our estimates of oil , gas and ngl production for 2011 .
we estimate that our combined oil , gas and ngl production will total approximately 236 to 240 mmboe .
( mmbbls ) ( mmbbls ) ( mmboe ) .

                      | oil ( mmbbls ) | gas ( bcf ) | ngls ( mmbbls ) | total ( mmboe )
--------------------- | -------------- | ----------- | --------------- | ---------------
u.s . onshore         | 17             | 736         | 34              | 174
canada                | 28             | 199         | 3               | 64
north america onshore | 45             | 935         | 37              | 238

oil and gas prices we expect our 2011 average prices for the oil and gas production from each of our operating areas to differ from the nymex price as set forth in the following table .
the expected ranges for prices are exclusive of the anticipated effects of the financial contracts presented in the 201ccommodity price risk management 201d section below .
the nymex price for oil is determined using the monthly average of settled prices on each trading day for benchmark west texas intermediate crude oil delivered at cushing , oklahoma .
the nymex price for gas is determined using the first-of-month south louisiana henry hub price index as published monthly in inside


notes to consolidated financial statements 2014 ( continued ) ucs .
as of may 31 , 2009 , $ 55.0 million of the purchase price was held in escrow ( the 201cescrow account 201d ) .
prior to our acquisition of ucs , the former parent company of ucs pledged the company 2019s stock as collateral for a third party loan ( 201cthe loan 201d ) that matures on september 24 , 2009 .
upon repayment of this loan , the stock will be released to us and $ 35.0 million of the purchase price will be released to the seller .
the remaining $ 20.0 million will remain in escrow until january 1 , 2013 , to satisfy any liabilities discovered post-closing that existed at the purchase date .
the purpose of this acquisition was to establish an acquiring presence in the russian market and a foundation for other direct acquiring opportunities in central and eastern europe .
the purchase price was determined by analyzing the historical and prospective financial statements and applying relevant purchase price multiples .
this business acquisition was not significant to our consolidated financial statements and accordingly , we have not provided pro forma information relating to this acquisition .
upon acquisition of ucs global payments assumed an indirect guarantee of the loan .
in the event of a default by the third-party debtor , we would be required to transfer all of the shares of ucs to the trustee or pay the amount outstanding under the loan .
at may 31 , 2009 the maximum potential amount of future payments under the guarantee was $ 44.1 million which represents the total outstanding under the loan , consisting of $ 21.8 million due and paid on june 24 , 2009 and $ 22.3 million due on september 24 , 2009 .
should the third-party debtor default on the final payment , global payments would pay the total amount outstanding and seek to be reimbursed for any payments made from the $ 55 million held in the escrow account .
we did not record an obligation for this guarantee because we determined that the fair value of the guarantee is de minimis .
the following table summarizes the preliminary purchase price allocation ( in thousands ) : .

total current assets                                  | $ 10657
----------------------------------------------------- | ----------------
goodwill                                              | 35431
customer-related intangible assets                    | 16500
trademark                                             | 3100
property and equipment                                | 19132
other long-term assets                                | 13101
total assets acquired                                 | 97921
current liabilities                                   | -7245 ( 7245 )
notes payable                                         | -8227 ( 8227 )
deferred income taxes and other long-term liabilities | -7449 ( 7449 )
total liabilities assumed                             | -22921 ( 22921 )
net assets acquired                                   | $ 75000

all of the goodwill associated with the acquisition is non-deductible for tax purposes .
the customer-related intangible assets have amortization periods of 9 to 15 years .
the trademark has an amortization period of 10 years .
global payments asia-pacific philippines incorporated on september 4 , 2008 , global payments asia-pacific , limited ( 201cgpap 201d ) , the entity through which we conduct our merchant acquiring business in the asia-pacific region , indirectly acquired global payments asia- pacific philippines incorporated ( 201cgpap philippines 201d ) , a newly formed company into which hsbc asia pacific contributed its merchant acquiring business in the philippines .
we own 56% ( 56 % ) of gpap and hsbc asia pacific


shareowner return performance graph the following performance graph and related information shall not be deemed 201csoliciting material 201d or to be 201cfiled 201d with the sec , nor shall such information be incorporated by reference into any future filing under the securities act of 1933 or securities exchange act of 1934 , each as amended , except to the extent that the company specifically incorporates such information by reference into such filing .
the following graph shows a five-year comparison of cumulative total shareowners 2019 returns for our class b common stock , the standard & poor 2019s 500 index and the dow jones transportation average .
the comparison of the total cumulative return on investment , which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods , assumes that $ 100 was invested on december 31 , 2012 in the standard & poor 2019s 500 index , the dow jones transportation average and our class b common stock. .

                                 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc .      | $ 100.00   | $ 146.54   | $ 159.23   | $ 148.89   | $ 182.70   | $ 195.75
standard & poor 2019s 500 index  | $ 100.00   | $ 132.38   | $ 150.49   | $ 152.55   | $ 170.79   | $ 208.06
dow jones transportation average | $ 100.00   | $ 141.38   | $ 176.83   | $ 147.19   | $ 179.37   | $ 213.49


sources of blackrock 2019s operating cash primarily include investment advisory , administration fees and securities lending revenue , performance fees , revenue from blackrock solutions and advisory products and services , other revenue and distribution fees .
blackrock uses its cash to pay all operating expense , interest and principal on borrowings , income taxes , dividends on blackrock 2019s capital stock , repurchases of the company 2019s stock , capital expenditures and purchases of co-investments and seed investments .
for details of the company 2019s gaap cash flows from operating , investing and financing activities , see the consolidated statements of cash flows contained in part ii , item 8 of this filing .
cash flows from operating activities , excluding the impact of consolidated sponsored investment funds , primarily include the receipt of investment advisory and administration fees , securities lending revenue and performance fees offset by the payment of operating expenses incurred in the normal course of business , including year-end incentive compensation accrued for in the prior year .
cash outflows from investing activities , excluding the impact of consolidated sponsored investment funds , for 2016 were $ 58 million and primarily reflected $ 384 million of investment purchases , $ 119 million of purchases of property and equipment and $ 30 million related to an acquisition , partially offset by $ 441 million of net proceeds from sales and maturities of certain investments .
cash outflows from financing activities , excluding the impact of consolidated sponsored investment funds , for 2016 were $ 2831 million , primarily resulting from $ 1.4 billion of share repurchases , including $ 1.1 billion in open market- transactions and $ 274 million of employee tax withholdings related to employee stock transactions and $ 1.5 billion of cash dividend payments , partially offset by $ 82 million of excess tax benefits from vested stock-based compensation awards .
the company manages its financial condition and funding to maintain appropriate liquidity for the business .
liquidity resources at december 31 , 2016 and 2015 were as follows : ( in millions ) december 31 , december 31 , cash and cash equivalents ( 1 ) $ 6091 $ 6083 cash and cash equivalents held by consolidated vres ( 2 ) ( 53 ) ( 100 ) .

( in millions )                                           | december 31 2016 | december 31 2015
--------------------------------------------------------- | ---------------- | ----------------
cash and cash equivalents ( 1 )                           | $ 6091           | $ 6083
cash and cash equivalents held by consolidated vres ( 2 ) | -53 ( 53 )       | -100 ( 100 )
subtotal                                                  | 6038             | 5983
credit facility 2014 undrawn                              | 4000             | 4000
total liquidity resources ( 3 )                           | $ 10038          | $ 9983

total liquidity resources ( 3 ) $ 10038 $ 9983 ( 1 ) the percentage of cash and cash equivalents held by the company 2019s u.s .
subsidiaries was approximately 50% ( 50 % ) at both december 31 , 2016 and 2015 .
see net capital requirements herein for more information on net capital requirements in certain regulated subsidiaries .
( 2 ) the company cannot readily access such cash to use in its operating activities .
( 3 ) amounts do not reflect year-end incentive compensation accruals of approximately $ 1.3 billion and $ 1.5 billion for 2016 and 2015 , respectively , which were paid in the first quarter of the following year .
total liquidity resources increased $ 55 million during 2016 , primarily reflecting cash flows from operating activities , partially offset by cash payments of 2015 year-end incentive awards , share repurchases of $ 1.4 billion and cash dividend payments of $ 1.5 billion .
a significant portion of the company 2019s $ 2414 million of total investments , as adjusted , is illiquid in nature and , as such , cannot be readily convertible to cash .
share repurchases .
the company repurchased 3.3 million common shares in open market-transactions under its share repurchase program for $ 1.1 billion during 2016 .
at december 31 , 2016 , there were 3 million shares still authorized to be repurchased .
in january 2017 , the board of directors approved an increase in the shares that may be repurchased under the company 2019s existing share repurchase program to allow for the repurchase of an additional 6 million shares for a total up to 9 million shares of blackrock common stock .
net capital requirements .
the company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions , which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions .
as a result , such subsidiaries of the company may be restricted in their ability to transfer cash between different jurisdictions and to their parents .
additionally , transfers of cash between international jurisdictions , including repatriation to the united states , may have adverse tax consequences that could discourage such transfers .
blackrock institutional trust company , n.a .
( 201cbtc 201d ) is chartered as a national bank that does not accept client deposits and whose powers are limited to trust and other fiduciary activities .
btc provides investment management services , including investment advisory and securities lending agency services , to institutional investors and other clients .
btc is subject to regulatory capital and liquid asset requirements administered by the office of the comptroller of the currency .
at december 31 , 2016 and 2015 , the company was required to maintain approximately $ 1.4 billion and $ 1.1 billion , respectively , in net capital in certain regulated subsidiaries , including btc , entities regulated by the financial conduct authority and prudential regulation authority in the united kingdom , and the company 2019s broker-dealers .
the company was in compliance with all applicable regulatory net capital requirements .
undistributed earnings of foreign subsidiaries .
as of december 31 , 2016 , the company has not provided for u.s .
federal and state income taxes on approximately $ 5.3 billion of undistributed earnings of its foreign subsidiaries .
such earnings are considered indefinitely reinvested outside the united states .
the company 2019s current plans do not demonstrate a need to repatriate these funds .
short-term borrowings 2016 revolving credit facility .
the company 2019s credit facility has an aggregate commitment amount of $ 4.0 billion and was amended in april 2016 to extend the maturity date to march 2021 ( the 201c2016 credit facility 201d ) .
the 2016 credit facility permits the company to request up to an additional $ 1.0 billion of borrowing capacity , subject to lender credit approval , increasing the overall size of the 2016 credit facility to an aggregate principal amount not to exceed $ 5.0 billion .
interest on borrowings outstanding accrues at a rate based on the applicable london interbank offered rate plus a spread .
the 2016 credit facility requires the company not to exceed a maximum leverage ratio ( ratio of net debt to


entergy texas , inc .
and subsidiaries management 2019s financial discussion and analysis results of operations net income 2017 compared to 2016 net income decreased $ 31.4 million primarily due to lower net revenue , higher depreciation and amortization expenses , higher other operation and maintenance expenses , and higher taxes other than income taxes .
2016 compared to 2015 net income increased $ 37.9 million primarily due to lower other operation and maintenance expenses , the asset write-off of its receivable associated with the spindletop gas storage facility in 2015 , and higher net revenue .
net revenue 2017 compared to 2016 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges .
following is an analysis of the change in net revenue comparing 2017 to 2016 .
amount ( in millions ) .

                         | amount ( in millions )
------------------------ | ----------------------
2016 net revenue         | $ 644.2
net wholesale revenue    | -35.1 ( 35.1 )
purchased power capacity | -5.9 ( 5.9 )
transmission revenue     | -5.4 ( 5.4 )
reserve equalization     | 5.6
retail electric price    | 19.0
other                    | 4.4
2017 net revenue         | $ 626.8

the net wholesale revenue variance is primarily due to lower net capacity revenues resulting from the termination of the purchased power agreements between entergy louisiana and entergy texas in august 2016 .
the purchased power capacity variance is primarily due to increased expenses due to capacity cost changes for ongoing purchased power capacity contracts .
the transmission revenue variance is primarily due to a decrease in the amount of transmission revenues allocated by miso .
the reserve equalization variance is due to the absence of reserve equalization expenses in 2017 as a result of entergy texas 2019s exit from the system agreement in august 2016 .
see note 2 to the financial statements for a discussion of the system agreement.


notes to consolidated financial statements ( continued ) note 7 2014income taxes ( continued ) as of september 30 , 2006 , the company has state and foreign tax loss and state credit carryforwards , the tax effect of which is $ 55 million .
certain of those carryforwards , the tax effect of which is $ 12 million , expire between 2016 and 2019 .
a portion of these carryforwards was acquired from the company 2019s previous acquisitions , the utilization of which is subject to certain limitations imposed by the internal revenue code .
the remaining benefits from tax losses and credits do not expire .
as of september 30 , 2006 and september 24 , 2005 , a valuation allowance of $ 5 million was recorded against the deferred tax asset for the benefits of state operating losses that may not be realized .
management believes it is more likely than not that forecasted income , including income that may be generated as a result of certain tax planning strategies , together with the tax effects of the deferred tax liabilities , will be sufficient to fully recover the remaining deferred tax assets .
a reconciliation of the provision for income taxes , with the amount computed by applying the statutory federal income tax rate ( 35% ( 35 % ) in 2006 , 2005 , and 2004 ) to income before provision for income taxes , is as follows ( in millions ) : 2006 2005 2004 as restated ( 1 ) as restated ( 1 ) .

                                                       | 2006         | 2005 as restated ( 1 ) | 2004 as restated ( 1 )
------------------------------------------------------ | ------------ | ---------------------- | ----------------------
computed expected tax                                  | $ 987        | $ 633                  | $ 129
state taxes net of federal effect                      | 86           | -19 ( 19 )             | -5 ( 5 )
indefinitely invested earnings of foreign subsidiaries | -224 ( 224 ) | -98 ( 98 )             | -31 ( 31 )
nondeductible executive compensation                   | 11           | 14                     | 12
research and development credit net                    | -12 ( 12 )   | -26 ( 26 )             | -5 ( 5 )
other items                                            | -19 ( 19 )   | -24 ( 24 )             | 4
provision for income taxes                             | $ 829        | $ 480                  | $ 104
effective tax rate                                     | 29% ( 29 % ) | 27% ( 27 % )           | 28% ( 28 % )

( 1 ) see note 2 , 201crestatement of consolidated financial statements . 201d the company 2019s income taxes payable has been reduced by the tax benefits from employee stock options .
the company receives an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price , tax effected .
the net tax benefits from employee stock option transactions were $ 419 million , $ 428 million ( as restated ( 1 ) ) , and $ 83 million ( as restated ( 1 ) ) in 2006 , 2005 , and 2004 , respectively , and were reflected as an increase to common stock in the consolidated statements of shareholders 2019 equity.


vertex pharmaceuticals incorporated notes to consolidated financial statements ( continued ) f .
marketable securities ( continued ) unrealized losses in the portfolio relate to various debt securities including u.s .
government securities , u.s .
government-sponsored enterprise securities , corporate debt securities and asset-backed securities .
for these securities , the unrealized losses are primarily due to increases in interest rates .
the investments held by the company are high investment grade and there were no adverse credit events .
because the company has the ability and intent to hold these investments until a recovery of fair value , which may be maturity , the company does not consider these investments to be other-than-temporarily impaired as of december 31 , 2006 and 2005 .
gross realized gains and losses for 2006 were $ 4000 and $ 88000 respectively .
gross realized gains and losses for 2005 were $ 15000 and $ 75000 , respectively .
gross realized gains and losses for 2004 were $ 628000 and $ 205000 , respectively .
g .
restricted cash at december 31 , 2006 and 2005 , the company held $ 30.3 million and $ 41.5 million respectively , in restricted cash .
at december 31 , 2006 and 2005 the balance was held in deposit with certain banks predominantly to collateralize conditional stand-by letters of credit in the names of the company 2019s landlords pursuant to certain operating lease agreements .
h .
property and equipment property and equipment consist of the following at december 31 ( in thousands ) : depreciation and amortization expense for the years ended december 31 , 2006 , 2005 and 2004 was $ 25.4 million , $ 26.3 million and $ 28.4 million , respectively .
in 2006 and 2005 , the company wrote off certain assets that were fully depreciated and no longer utilized .
there was no effect on the company 2019s net property and equipment .
additionally , the company wrote off or sold certain assets that were not fully depreciated .
the net loss on disposal of those assets was $ 10000 for 2006 , $ 344000 for 2005 and $ 43000 for 2004 .
i .
altus investment altus pharmaceuticals , inc .
( 201caltus 201d ) completed an initial public offering in january 2006 .
as of the completion of the offering , vertex owned 817749 shares of common stock and warrants to purchase 1962494 shares of common stock ( the 201caltus warrants 201d ) .
in addition , the company , as of the completion .

                                               | 2006    | 2005
---------------------------------------------- | ------- | -------
furniture and equipment                        | $ 97638 | $ 98387
leasehold improvements                         | 74875   | 66318
computers                                      | 19733   | 18971
software                                       | 21274   | 18683
total property and equipment gross             | 213520  | 202359
less accumulated depreciation and amortization | 151985  | 147826
total property and equipment net               | $ 61535 | $ 54533

furniture and equipment $ 97638 $ 98387 leasehold improvements 74875 66318 computers 19733 18971 software 21274 18683 total property and equipment , gross 213520 202359 less accumulated depreciation and amortization 151985 147826 total property and equipment , net $ 61535 $ 54533