item 12 .
security ownership of certain beneficial owners and management and related stockholder matters .
the information required by item 12 is included under the heading 201csecurity ownership of management and certain beneficial owners 201d in the 2017 proxy statement , and that information is incorporated by reference in this form 10-k .
equity compensation plan information the following table provides information about our equity compensation plans that authorize the issuance of shares of lockheed martin common stock to employees and directors .
the information is provided as of december 31 , 2016 .
plan category number of securities to be issued exercise of outstanding options , warrants and rights weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders ( 1 ) 5802673 $ 85.82 6216471 equity compensation plans not approved by security holders ( 2 ) 1082347 2014 2481032 .

plan category                                                   | number of securities to beissued upon exercise of outstanding options warrants and rights ( a ) | weighted-average exercise price of outstanding options warrants and rights ( b ) | number of securities remaining availablefor future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c )
--------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by securityholders ( 1 )     | 5802673                                                                                | $ 85.82                                                                          | 6216471
equity compensation plans not approved bysecurity holders ( 2 ) | 1082347                                                                                | 2014                                                                             | 2481032
total                                                           | 6885020                                                                                | $ 85.82                                                                          | 8697503

( 1 ) column ( a ) includes , as of december 31 , 2016 : 1747151 shares that have been granted as restricted stock units ( rsus ) , 936308 shares that could be earned pursuant to grants of performance stock units ( psus ) ( assuming the maximum number of psus are earned and payable at the end of the three-year performance period ) and 2967046 shares granted as options under the lockheed martin corporation 2011 incentive performance award plan ( 2011 ipa plan ) or predecessor plans prior to january 1 , 2013 and 23346 shares granted as options and 128822 stock units payable in stock or cash under the lockheed martin corporation 2009 directors equity plan ( directors equity plan ) or predecessor plans for members ( or former members ) of the board of directors .
column ( c ) includes , as of december 31 , 2016 , 5751655 shares available for future issuance under the 2011 ipa plan as options , stock appreciation rights ( sars ) , restricted stock awards ( rsas ) , rsus or psus and 464816 shares available for future issuance under the directors equity plan as stock options and stock units .
of the 5751655 shares available for grant under the 2011 ipa plan on december 31 , 2016 , 516653 and 236654 shares are issuable pursuant to grants made on january 26 , 2017 , of rsus and psus ( assuming the maximum number of psus are earned and payable at the end of the three-year performance period ) , respectively .
the weighted average price does not take into account shares issued pursuant to rsus or psus .
( 2 ) the shares represent annual incentive bonuses and long-term incentive performance ( ltip ) payments earned and voluntarily deferred by employees .
the deferred amounts are payable under the deferred management incentive compensation plan ( dmicp ) .
deferred amounts are credited as phantom stock units at the closing price of our stock on the date the deferral is effective .
amounts equal to our dividend are credited as stock units at the time we pay a dividend .
following termination of employment , a number of shares of stock equal to the number of stock units credited to the employee 2019s dmicp account are distributed to the employee .
there is no discount or value transfer on the stock distributed .
distributions may be made from newly issued shares or shares purchased on the open market .
historically , all distributions have come from shares held in a separate trust and , therefore , do not further dilute our common shares outstanding .
as a result , these shares also were not considered in calculating the total weighted average exercise price in the table .
because the dmicp shares are outstanding , they should be included in the denominator ( and not the numerator ) of a dilution calculation .
item 13 .
certain relationships and related transactions and director independence .
the information required by this item 13 is included under the captions 201ccorporate governance 2013 related person transaction policy , 201d 201ccorporate governance 2013 certain relationships and related person transactions of directors , executive officers , and 5 percent stockholders , 201d and 201ccorporate governance 2013 director independence 201d in the 2017 proxy statement , and that information is incorporated by reference in this form 10-k .
item 14 .
principal accountant fees and services .
the information required by this item 14 is included under the caption 201cproposal 2 2013 ratification of appointment of independent auditors 201d in the 2017 proxy statement , and that information is incorporated by reference in this form 10-k.


28 2014 annual report performance graph the following chart presents a comparison for the five-year period ended june 30 , 2014 , of the market performance of the company 2019s common stock with the s & p 500 index and an index of peer companies selected by the company : comparison of 5 year cumulative total return among jack henry & associates , inc. , the s&p 500 index , and a peer group the following information depicts a line graph with the following values: .

               | 2009   | 2010   | 2011   | 2012   | 2013   | 2014
-------------- | ------ | ------ | ------ | ------ | ------ | ------
jkhy           | 100.00 | 116.85 | 148.92 | 173.67 | 240.25 | 307.57
old peer group | 100.00 | 112.45 | 150.77 | 176.12 | 220.42 | 275.73
new peer group | 100.00 | 115.50 | 159.31 | 171.86 | 198.72 | 273.95
s & p 500      | 100.00 | 114.43 | 149.55 | 157.70 | 190.18 | 236.98

this comparison assumes $ 100 was invested on june 30 , 2009 , and assumes reinvestments of dividends .
total returns are calculated according to market capitalization of peer group members at the beginning of each period .
peer companies selected are in the business of providing specialized computer software , hardware and related services to financial institutions and other businesses .
in fiscal 2014 , we changed our peer group of companies used for this analysis to maintain alignment with peer companies selected by our compensation committee for use in determining compensation for executive management .
companies in the new peer group are aci worldwide , inc. , bottomline technology , inc. , broadridge financial solutions , cardtronics , inc. , convergys corp. , corelogic , inc. , dst systems , inc. , euronet worldwide , inc. , fair isaac corp. , fidelity national information services , inc. , fiserv , inc. , global payments , inc. , heartland payment systems , inc. , micros systems , inc. , moneygram international , inc. , ss&c technologies holdings , inc. , total systems services , inc. , tyler technologies , inc. , verifone systems , inc. , and wex , inc. .
companies in the old peer group are aci worldwide , inc. , bottomline technology , inc. , cerner corp. , dst systems , inc. , euronet worldwide , inc. , fair isaac corp. , fidelity national information services , inc. , fiserv , inc. , sei investments company , telecommunications systems , inc. , and tyler technologies corp.


amount of unrecognized tax benefit related to permanent differences because a portion of those unrecognized benefits relate to state tax matters .
it is reasonably possible that the liability for uncertain tax positions could increase or decrease in the next twelve months due to completion of tax authorities 2019 exams or the expiration of statutes of limitations .
management estimates that the liability for uncertain tax positions could decrease by $ 5 million within the next twelve months .
the consolidated federal income tax returns of the pnc financial services group , inc .
and subsidiaries through 2003 have been audited by the internal revenue service and we have resolved all disputed matters through the irs appeals division .
the internal revenue service is currently examining the 2004 through 2006 consolidated federal income tax returns of the pnc financial services group , inc .
and subsidiaries .
the consolidated federal income tax returns of national city corporation and subsidiaries through 2004 have been audited by the internal revenue service and we have reached agreement in principle on resolution of all disputed matters through the irs appeals division .
however , because the agreement is still subject to execution of a closing agreement we have not treated it as effectively settled .
the internal revenue service is currently examining the 2005 through 2007 consolidated federal income tax returns of national city corporation and subsidiaries , and we expect the 2008 federal income tax return to begin being audited as soon as it is filed .
new york , new jersey , maryland and new york city are principally where we were subject to state and local income tax prior to our acquisition of national city .
the state of new york is currently in the process of closing the 2002 to 2004 audit and will begin auditing the years 2005 and 2006 .
new york city is currently auditing 2004 and 2005 .
however , years 2002 and 2003 remain subject to examination by new york city pending completion of the new york state audit .
through 2006 , blackrock is included in our new york and new york city combined tax filings and constituted most of the tax liability .
years subsequent to 2004 remain subject to examination by new jersey and years subsequent to 2005 remain subject to examination by maryland .
national city was principally subject to state and local income tax in california , florida , illinois , indiana , and missouri .
audits currently in process for these states include : california ( 2003-2004 ) , illinois ( 2004-2006 ) and missouri ( 2003-2005 ) .
we will now also be principally subject to tax in those states .
in the ordinary course of business we are routinely subject to audit by the taxing authorities of these states and at any given time a number of audits will be in process .
our policy is to classify interest and penalties associated with income taxes as income taxes .
at january 1 , 2008 , we had accrued $ 91 million of interest related to tax positions , most of which related to our cross-border leasing transactions .
the total accrued interest and penalties at december 31 , 2008 was $ 164 million .
while the leasing related interest decreased with a payment to the irs , the $ 73 million net increase primarily resulted from our acquisition of national city .
note 22 summarized financial information of blackrock as required by sec regulation s-x , summarized consolidated financial information of blackrock follows ( in millions ) . .

december 31                                                             | 2008         | 2007
----------------------------------------------------------------------- | ------------ | -------
total assets                                                            | $ 19924      | $ 22561
total liabilities                                                       | $ 7367       | $ 10387
non-controlling interest                                                | 491          | 578
stockholders 2019 equity                                                | 12066        | 11596
total liabilities non-controlling interest and stockholders 2019 equity | $ 19924      | $ 22561
year ended december 31                                                  | 2008         | 2007
total revenue                                                           | $ 5064       | $ 4845
total expenses                                                          | 3471         | 3551
operating income                                                        | 1593         | 1294
non-operating income ( expense )                                        | -574 ( 574 ) | 529
income before income taxes and non-controlling interest                 | 1019         | 1823
income taxes                                                            | 388          | 464
non-controlling interest                                                | -155 ( 155 ) | 364
net income                                                              | $ 786        | $ 995

note 23 regulatory matters we are subject to the regulations of certain federal and state agencies and undergo periodic examinations by such regulatory authorities .
the access to and cost of funding new business initiatives including acquisitions , the ability to pay dividends , the level of deposit insurance costs , and the level and nature of regulatory oversight depend , in large part , on a financial institution 2019s capital strength .
the minimum us regulatory capital ratios are 4% ( 4 % ) for tier 1 risk-based , 8% ( 8 % ) for total risk- based and 4% ( 4 % ) for leverage .
however , regulators may require higher capital levels when particular circumstances warrant .
to qualify as 201cwell capitalized , 201d regulators require banks to maintain capital ratios of at least 6% ( 6 % ) for tier 1 risk-based , 10% ( 10 % ) for total risk-based and 5% ( 5 % ) for leverage .
at december 31 , 2008 and december 31 , 2007 , each of our domestic bank subsidiaries met the 201cwell capitalized 201d capital ratio requirements.


vornado realty trust notes to consolidated financial statements ( continued ) 10 .
redeemable noncontrolling interests - continued redeemable noncontrolling interests on our consolidated balance sheets are recorded at the greater of their carrying amount or redemption value at the end of each reporting period .
changes in the value from period to period are charged to 201cadditional capital 201d in our consolidated statements of changes in equity .
below is a table summarizing the activity of redeemable noncontrolling interests .
( amounts in thousands ) .

balance at december 31 2009                                        | $ 1251628
------------------------------------------------------------------ | ------------------
net income                                                         | 55228
distributions                                                      | -53515 ( 53515 )
conversion of class a units into common shares at redemption value | -126764 ( 126764 )
adjustment to carry redeemable class a units at redemption value   | 191826
redemption of series d-12 redeemable units                         | -13000 ( 13000 )
other net                                                          | 22571
balance at december 31 2010                                        | 1327974
net income                                                         | 55912
distributions                                                      | -50865 ( 50865 )
conversion of class a units into common shares at redemption value | -64830 ( 64830 )
adjustment to carry redeemable class a units at redemption value   | -98092 ( 98092 )
redemption of series d-11 redeemable units                         | -28000 ( 28000 )
other net                                                          | 18578
balance at december 31 2011                                        | $ 1160677

redeemable noncontrolling interests exclude our series g convertible preferred units and series d-13 cumulative redeemable preferred units , as they are accounted for as liabilities in accordance with asc 480 , distinguishing liabilities and equity , because of their possible settlement by issuing a variable number of vornado common shares .
accordingly , the fair value of these units is included as a component of 201cother liabilities 201d on our consolidated balance sheets and aggregated $ 54865000 and $ 55097000 as of december 31 , 2011 and 2010 , respectively.


notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts ) litigation settlement 2014 during may 2008 , the sec concluded its investigation that began in 2002 into our financial reporting practices , resulting in a settlement charge of $ 12.0 .
investment impairments 2014 in 2007 we realized an other-than-temporary charge of $ 5.8 relating to a $ 12.5 investment in auction rate securities , representing our total investment in auction rate securities .
for additional information see note 15 .
note 6 : intangible assets goodwill goodwill is the excess purchase price remaining from an acquisition after an allocation of purchase price has been made to identifiable assets acquired and liabilities assumed based on estimated fair values .
the changes in the carrying value of goodwill by segment for the years ended december 31 , 2008 and 2007 are as follows: .

                                                        | ian              | cmg            | total
------------------------------------------------------- | ---------------- | -------------- | ----------------
balance as of december 31 2006                          | $ 2632.5         | $ 435.3        | $ 3067.8
current year acquisitions                               | 86.0             | 2014           | 86.0
contingent and deferred payments for prior acquisitions | 4.7              | 3.7            | 8.4
amounts allocated to business dispositions              | -5.7 ( 5.7 )     | 2014           | -5.7 ( 5.7 )
other ( primarily foreign currency translation )        | 72.2             | 2.9            | 75.1
balance as of december 31 2007                          | 2789.7           | 441.9          | 3231.6
current year acquisitions                               | 99.5             | 1.8            | 101.3
contingent and deferred payments for prior acquisitions | 28.9             | 1.1            | 30.0
amounts allocated to business dispositions              | -0.4 ( 0.4 )     | 2014           | -0.4 ( 0.4 )
other ( primarily foreign currency translation )        | -127.7 ( 127.7 ) | -13.9 ( 13.9 ) | -141.6 ( 141.6 )
balance as of december 31 2008                          | $ 2790.0         | $ 430.9        | $ 3220.9

during the latter part of the fourth quarter of 2008 our stock price declined significantly after our annual impairment review as of october 1 , 2008 , and our market capitalization was less than our book value as of december 31 , 2008 .
we considered whether there were any events or circumstances indicative of a triggering event and determined that the decline in stock price during the fourth quarter was an event that would 201cmore likely than not 201d reduce the fair value of our individual reporting units below their book value , requiring us to perform an interim impairment test for goodwill at the reporting unit level .
based on the interim impairment test conducted , we concluded that there was no impairment of our goodwill as of december 31 , 2008 .
we will continue to monitor our stock price as it relates to the reconciliation of our market capitalization and the fair values of our individual reporting units throughout 2009 .
during our annual impairment reviews as of october 1 , 2006 our discounted future operating cash flow projections at one of our domestic advertising reporting units indicated that the implied fair value of the goodwill at this reporting unit was less than its book value , primarily due to client losses , resulting in a goodwill impairment charge of $ 27.2 in 2006 in our ian segment .
other intangible assets included in other intangible assets are assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization .
other intangible assets include non-compete agreements , license costs , trade names and customer lists .
intangible assets with definitive lives subject to amortization are amortized on a


n o t e s t o c o n s o l i d a t e d f i n a n c i a l s t a t e m e n t s ( continued ) ace limited and subsidiaries there are no statutory restrictions on the payment of dividends from retained earnings by any of the bermuda subsidiaries as the minimum statutory capital and surplus requirements are satisfied by the share capital and additional paid-in capital of each of the bermuda subsidiaries .
the company 2019s u.s .
subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulators .
statutory accounting differs from gaap in the reporting of certain reinsurance contracts , investments , subsidiaries , acquis- ition expenses , fixed assets , deferred income taxes , and certain other items .
the statutory capital and surplus of the u.s .
subsidiaries met regulatory requirements for 2008 , 2007 , and 2006 .
the amount of dividends available to be paid in 2009 , without prior approval from the state insurance departments , totals $ 835 million .
the combined statutory capital and surplus and statutory net income of the bermuda and u.s .
subsidiaries as of and for the years ended december 31 , 2008 , 2007 , and 2006 , are as follows: .

( in millions of u.s . dollars ) | bermuda subsidiaries 2008 | bermuda subsidiaries 2007 | bermuda subsidiaries 2006 | bermuda subsidiaries 2008 | bermuda subsidiaries 2007 | 2006
-------------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------
statutory capital and surplus    | $ 7001                    | $ 8579                    | $ 7605                    | $ 5337                    | $ 5321                    | $ 4431
statutory net income             | $ 684                     | $ 1535                    | $ 1527                    | $ 798                     | $ 873                     | $ 724

as permitted by the restructuring discussed previously in note 7 , certain of the company 2019s u.s .
subsidiaries discount certain a&e liabilities , which increased statutory capital and surplus by approximately $ 211 million , $ 140 million , and $ 157 million as of december 31 , 2008 , 2007 , and 2006 , respectively .
the company 2019s international subsidiaries prepare statutory financial statements based on local laws and regulations .
some jurisdictions impose complex regulatory requirements on insurance companies while other jurisdictions impose fewer requirements .
in some countries , the company must obtain licenses issued by governmental authorities to conduct local insurance business .
these licenses may be subject to reserves and minimum capital and solvency tests .
jurisdictions may impose fines , censure , and/or criminal sanctions for violation of regulatory requirements .
other disclosures required by swiss law ( i ) expenses total personnel expenses amounted to $ 1.4 billion for the year ended december 31 , 2008 , and $ 1.1 billion for each of the years ended december 31 , 2007 and 2006 .
amortization expense related to tangible property amounted to $ 90 million , $ 77 million , and $ 64 million for the years ended december 31 , 2008 , 2007 , and 2006 , respectively .
( ii ) fire insurance values of property and equipment total fire insurance values of property and equipment amounted to $ 680 million and $ 464 million at december 31 , 2008 and 2007 , respectively .
( iii ) risk assessment and management the management of ace is responsible for assessing risks related to the financial reporting process and for establishing and maintaining adequate internal control over financial reporting .
internal control over financial reporting is a process designed by , or under the supervision of the chief executive officer and chief financial officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of ace 2019s consolidated financial statements for external purposes in accordance with gaap .
the board , operating through its audit committee composed entirely of directors who are not officers or employees of the company , provides oversight of the financial reporting process and safeguarding of assets against unauthorized acquisition , use , or disposition .
the audit committee meets with management , the independent registered public accountants and the internal auditor ; approves the overall scope of audit work and related fee arrangements ; and reviews audit reports and findings .
in addition , the independent registered public accountants and the internal auditor meet separately with the audit committee , without management representatives present , to discuss the results of their audits ; the adequacy of the company 2019s internal control ; the quality of its financial reporting ; and the safeguarding of assets against unauthorized acquisition , use , or dis- position .
ace 2019s management is responsible for assessing operational risks facing the company and sets policies designed to address such risks .
examples of key areas addressed by ace 2019s risk management processes follow.


issuer purchases of equity securities in january 2017 , our board of directors authorized the repurchase of shares of our common stock with a value of up to $ 525 million in the aggregate .
as of december 29 , 2018 , $ 175 million remained available under this authorization .
in february 2019 , our board of directors authorized the additional repurchase of shares of our common stock with a value of up to $ 500.0 million in the aggregate .
the actual timing and amount of repurchases are subject to business and market conditions , corporate and regulatory requirements , stock price , acquisition opportunities and other factors .
the following table presents repurchases made under our current authorization and shares surrendered by employees to satisfy income tax withholding obligations during the three months ended december 29 , 2018 : period total number of shares purchased ( 1 ) average price paid per share ( 2 ) total number of shares purchased as part of publicly announced plan or program maximum dollar value of shares authorized for repurchase under publicly announced plan or program ( 1 ) ( in millions ) september 30 , 2018 2013 november 3 , 2018 543900 $ 42.64 495543 $ 254 november 4 , 2018 2013 december 1 , 2018 650048 $ 44.49 623692 $ 226 december 2 , 2018 2013 december 29 , 2018 1327657 $ 42.61 1203690 $ 175 .

period                                 | total numberof sharespurchased ( 1 ) | averageprice paidper share ( 2 ) | total number ofshares purchasedas part ofpublicly announcedplan or program | maximum dollarvalue of sharesauthorized for repurchase underpublicly announcedplan or program ( 1 ) ( in millions )
-------------------------------------- | ------------------------------------ | -------------------------------- | -------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------
september 30 2018 2013 november 3 2018 | 543900                               | $ 42.64                          | 495543                                                                     | $ 254
november 4 2018 2013 december 1 2018   | 650048                               | $ 44.49                          | 623692                                                                     | $ 226
december 2 2018 2013 december 29 2018  | 1327657                              | $ 42.61                          | 1203690                                                                    | $ 175
total                                  | 2521605                              | $ 43.10                          | 2322925                                                                    |

( 1 ) shares purchased that were not part of our publicly announced repurchase programs represent employee surrender of shares of restricted stock to satisfy employee income tax withholding obligations due upon vesting , and do not reduce the dollar value that may yet be purchased under our publicly announced repurchase programs .
( 2 ) the weighted average price paid per share of common stock does not include the cost of commissions.


entergy corporation and subsidiaries management's financial discussion and analysis net revenue utility following is an analysis of the change in net revenue comparing 2011 to 2010 .
amount ( in millions ) .

                                      | amount ( in millions )
------------------------------------- | ----------------------
2010 net revenue                      | $ 5051
mark-to-market tax settlement sharing | -196 ( 196 )
purchased power capacity              | -21 ( 21 )
net wholesale revenue                 | -14 ( 14 )
volume/weather                        | 13
ano decommissioning trust             | 24
retail electric price                 | 49
other                                 | -2 ( 2 )
2011 net revenue                      | $ 4904

the mark-to-market tax settlement sharing variance results from a regulatory charge because a portion of the benefits of a settlement with the irs related to the mark-to-market income tax treatment of power purchase contracts will be shared with customers , slightly offset by the amortization of a portion of that charge beginning in october 2011 .
see notes 3 and 8 to the financial statements for additional discussion of the settlement and benefit sharing .
the purchased power capacity variance is primarily due to price increases for ongoing purchased power capacity and additional capacity purchases .
the net wholesale revenue variance is primarily due to lower margins on co-owner contracts and higher wholesale energy costs .
the volume/weather variance is primarily due to an increase of 2061 gwh in weather-adjusted usage across all sectors .
weather-adjusted residential retail sales growth reflected an increase in the number of customers .
industrial sales growth has continued since the beginning of 2010 .
entergy 2019s service territory has benefited from the national manufacturing economy and exports , as well as industrial facility expansions .
increases have been offset to some extent by declines in the paper , wood products , and pipeline segments .
the increase was also partially offset by the effect of less favorable weather on residential sales .
the ano decommissioning trust variance is primarily related to the deferral of investment gains from the ano 1 and 2 decommissioning trust in 2010 in accordance with regulatory treatment .
the gains resulted in an increase in interest and investment income in 2010 and a corresponding increase in regulatory charges with no effect on net income .
the retail electric price variance is primarily due to : rate actions at entergy texas , including a base rate increase effective august 2010 and an additional increase beginning may 2011 ; a formula rate plan increase at entergy louisiana effective may 2011 ; and a base rate increase at entergy arkansas effective july 2010 .
these were partially offset by formula rate plan decreases at entergy new orleans effective october 2010 and october 2011 .
see note 2 to the financial statements for further discussion of these proceedings.


note 6 2014mergers and acquisitions eldertrust merger on february 5 , 2004 , the company consummated a merger transaction in an all cash transaction valued at $ 184 million ( the 201celdertrust transaction 201d ) .
the eldertrust transaction adds nine assisted living facilities , one independent living facility , five skilled nursing facilities , two med- ical office buildings and a financial office building ( the 201celdertrust properties 201d ) to the company 2019s portfolio.the eldertrust properties are leased by the company to various operators under leases providing for aggregated , annual cash base rent of approxi- mately $ 16.2 million , subject to escalation as provided in the leases.the leases have remaining terms primarily ranging from four to 11 years.at the closing of the eldertrust transaction , the company also acquired all of the limited partnership units in eldertrust operating limited partnership ( 201cetop 201d ) directly from their owners at $ 12.50 per unit , excluding 31455 class c units in etop ( which will remain outstanding ) .
etop owns directly or indirectly all of the eldertrust properties .
the company funded the $ 101 million equity portion of the purchase price with cash on eldertrust 2019s balance sheet , a portion of the $ 85 million in proceeds from its december 2003 sale of ten facilities to kindred and draws on the company 2019s revolving credit facility ( the 201crevolving credit facility 201d ) under its second amended and restated security and guaranty agreement , dated as of april 17 , 2002 ( the 201c2002 credit agreement 201d ) .the company 2019s ownership of the eldertrust properties is subject to approximately $ 83 million of property level debt and other liabilities.at the close of the eldertrust transaction , eldertrust had approximately $ 33.5 million in unrestricted and restricted cash on hand .
the acquisition was accounted for under the purchase method .
the following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition .
such estimates are subject to refinement as additional valuation information is received .
operations from this merger will be reflected in the company 2019s consolidated financial state- ments for periods subsequent to the acquisition date of february 5 , 2004.the company is in the process of computing fair values , thus , the allocation of the purchase price is subject to refinement. .

                                               | ( in millions )
---------------------------------------------- | ---------------
real estate investments                        | $ 162
cash and cash equivalents                      | 28
other assets                                   | 5
total assets acquired                          | $ 195
notes payable and other debt                   | 83
accounts payable and other accrued liabilities | 2
total liabilities assumed                      | 85
net assets acquired                            | $ 110

transaction with brookdale on january 29 , 2004 , the company entered into 14 definitive purchase agreements ( each , a 201cbrookdale purchase agreement 201d ) with certain affiliates of brookdale living communities , inc .
( 201cbrookdale 201d ) to purchase ( each such purchase , a 201cbrookdale acquisition 201d ) a total of 14 independent living or assisted living facilities ( each , a 201cbrookdale facility 201d ) for an aggregate purchase price of $ 115 million.affiliates of brookdale have agreed to lease and operate the brookdale facilities pursuant to one or more triple-net leases.all of the brookdale leases , which have an initial term of 15 years , will be guaranteed by brookdale and provide for aggregated annual base rent of approximately $ 10 million , escalating each year by the greater of ( i ) 1.5% ( 1.5 % ) or ( ii ) 75% ( 75 % ) of the consumer price index .
the company expects to fund the brookdale acquisitions by assuming an aggregate of approximately $ 41 million of non- recourse property level debt on certain of the brookdale facilities , with the balance to be paid from cash on hand and/or draws on the revolving credit facility.the property level debt encumbers seven of the brookdale facilities .
on january 29 , 2004 , the company completed the acquisitions of four brookdale facilities for an aggregate purchase price of $ 37 million.the company 2019s acquisition of the remaining ten brookdale facilities is expected to be completed shortly , subject to customary closing conditions .
however , the consummation of each such brookdale acquisition is not conditioned upon the consummation of any other such brookdale acquisition and there can be no assurance which , if any , of such remaining brookdale acquisitions will be consummated or when they will be consummated .
transactions with trans healthcare , inc .
on november 4 , 2002 , the company , through its wholly owned subsidiary ventas realty , completed a $ 120.0 million transaction ( the 201cthi transaction 201d ) with trans healthcare , inc. , a privately owned long-term care and hospital company ( 201cthi 201d ) .the thi transaction was structured as a $ 53.0 million sale leaseback trans- action ( the 201cthi sale leaseback 201d ) and a $ 67.0 million loan ( the 201cthi loan 201d ) , comprised of a first mortgage loan ( the 201cthi senior loan 201d ) and a mezzanine loan ( the 201cthi mezzanine loan 201d ) .
following a sale of the thi senior loan in december 2002 ( see below ) , the company 2019s investment in thi was $ 70.0 million .
as part of the thi sale leasebackventas realty purchased 5 properties and is leasing them back to thi under a 201ctriple-net 201d master lease ( the 201cthi master lease 201d ) .the properties subject to the sale leaseback are four skilled nursing facilities and one con- tinuing care retirement community.the thi master lease , which has an initial term of ten years , provides for annual base rent of $ 5.9 million.the thi master lease provides that if thi meets specified revenue parameters , annual base rent will escalate each year by the greater of ( i ) three percent or ( ii ) 50% ( 50 % ) of the consumer price index .
ventas , inc .
page 37 annual report 2003


22 2002subsequent events in january 2011 , we purchased cif 2019s 49.9% ( 49.9 % ) interest in 521 fifth avenue , thereby assuming full ownership of the building .
the transaction values the consolidated interest at approximately $ 245.7 a0million .
in january 2011 , we repaid our $ 84.8 a0million , 5.15% ( 5.15 % ) unsecured notes at par on their maturity date .
in january 2011 , we , along with the moinian group , completed the recapitalization of 3 columbus circle .
the recapitalization included a $ 138 a0million equity investment by sl a0green , a portion of which was in the form of sl a0green operating partnership units .
we believe the property is now fully capitalized for all costs necessary to complete the redevelop- ment and lease-up of the building .
the previously existing mortgage has been refinanced with a bridge loan provided by sl a0green and deutsche bank , which we intend to be further refinanced by third-party lenders at a later date .
on february a010 , 2011 , the company and the operating partnership entered into atm equity offering sales agreements with each of merrill lynch , pierce , fenner a0& smith incorporated and morgan stanley a0& a0co .
incorporated , to sell shares of the company 2019s common stock , from time to time , through a $ 250.0 a0 million 201cat the market 201d equity offering program under which merrill lynch , pierce , fenner a0& smith incorporated and morgan stanley a0& a0co .
incorporated are acting as sales agents .
as of february a022 , 2011 , we sold approximately 2.0 a0million shares our common stock through the program for aggregate proceeds of $ 144.1 a0million .
2009 quarter ended december a031 september a030 june a030 march a031 .

2009 quarter ended                                                                           | december 31      | september 30     | june 30          | march 31
-------------------------------------------------------------------------------------------- | ---------------- | ---------------- | ---------------- | ----------------
total revenues                                                                               | $ 243040         | $ 245769         | $ 248251         | $ 258787
income ( loss ) net of noncontrolling interests and before gains on sale                     | -380 ( 380 )     | 4099             | -10242 ( 10242 ) | -26600 ( 26600 )
equity in net gain ( loss ) on sale of interest in unconsolidated joint venture/ real estate | 2014             | -157 ( 157 )     | -2693 ( 2693 )   | 9541
gain on early extinguishment of debt                                                         | 606              | 8368             | 29321            | 47712
gain ( loss ) on equity investment in marketable securities                                  | -232 ( 232 )     | -52 ( 52 )       | 127              | -807 ( 807 )
net income from discontinued operations                                                      | 1593             | 1863             | 999              | 1319
gain ( loss ) on sale of discontinued operations                                             | -1741 ( 1741 )   | -11672 ( 11672 ) | 2014             | 6572
net income ( loss ) attributable to sl green                                                 | -154 ( 154 )     | 2449             | 17512            | 37737
preferred stock dividends                                                                    | -4969 ( 4969 )   | -4969 ( 4969 )   | -4969 ( 4969 )   | -4969 ( 4969 )
net income ( loss ) attributable to sl green common stockholders                             | $ -5123 ( 5123 ) | $ -2520 ( 2520 ) | $ 12543          | $ 32768
net income ( loss ) per common share-basic                                                   | $ -0.07 ( 0.07 ) | $ -0.03 ( 0.03 ) | $ 0.19           | $ 0.57
net income ( loss ) per common share-diluted                                                 | $ -0.07 ( 0.07 ) | $ -0.03 ( 0.03 ) | $ 0.18           | $ 0.57

88 sl green realty corp .
2010 annual report notes to consolidated financial statements


natural gas prices on average were lower in 2009 than in 2008 and in 2007 , with prices in 2008 hitting uniquely high levels .
a significant portion of our natural gas production in the lower 48 states of the u.s .
is sold at bid-week prices or first-of-month indices relative to our specific producing areas .
a large portion of natural gas sales in alaska are subject to term contracts .
our other major natural gas-producing regions are europe and equatorial guinea , where large portions of our natural gas sales are also subject to term contracts , making realized prices in these areas less volatile .
as we sell larger quantities of natural gas from these regions , to the extent that these fixed prices are lower than prevailing prices , our reported average natural gas prices realizations may be less than benchmark natural gas prices .
oil sands mining oil sands mining segment revenues correlate with prevailing market prices for the various qualities of synthetic crude oil and vacuum gas oil we produce .
roughly two-thirds of the normal output mix will track movements in wti and one-third will track movements in the canadian heavy sour crude oil marker , primarily western canadian select .
output mix can be impacted by operational problems or planned unit outages at the mine or the upgrader .
the operating cost structure of the oil sands mining operations is predominantly fixed and therefore many of the costs incurred in times of full operation continue during production downtime .
per-unit costs are sensitive to production rates .
key variable costs are natural gas and diesel fuel , which track commodity markets such as the canadian aeco natural gas sales index and crude prices respectively .
the table below shows average benchmark prices that impact both our revenues and variable costs. .

benchmark                                                | 2009    | 2008    | 2007
-------------------------------------------------------- | ------- | ------- | -------
wti crude oil ( dollars per barrel )                     | $ 62.09 | $ 99.75 | $ 72.41
western canadian select ( dollars per barrel ) ( a )     | $ 52.13 | $ 79.59 | $ 49.60
aeco natural gas sales index ( dollars per mmbtu ) ( b ) | $ 3.49  | $ 7.74  | $ 6.06

western canadian select ( dollars per barrel ) ( a ) $ 52.13 $ 79.59 $ 49.60 aeco natural gas sales index ( dollars per mmbtu ) ( b ) $ 3.49 $ 7.74 $ 6.06 ( a ) monthly pricing based upon average wti adjusted for differentials unique to western canada .
( b ) alberta energy company day ahead index .
integrated gas our integrated gas strategy is to link stranded natural gas resources with areas where a supply gap is emerging due to declining production and growing demand .
our integrated gas operations include marketing and transportation of products manufactured from natural gas , such as lng and methanol , primarily in west africa , the u.s .
and europe .
our most significant lng investment is our 60 percent ownership in a production facility in equatorial guinea , which sells lng under a long-term contract at prices tied to henry hub natural gas prices .
in 2009 , the gross sales from the plant were 3.9 million metric tonnes , while in 2008 , its first full year of operations , the plant sold 3.4 million metric tonnes .
industry estimates of 2009 lng trade are approximately 185 million metric tonnes .
more lng production facilities and tankers were under construction in 2009 .
as a result of the sharp worldwide economic downturn in 2008 , continued weak economies are expected to lower natural gas consumption in various countries ; therefore , affecting near-term demand for lng .
long-term lng supply continues to be in demand as markets seek the benefits of clean burning natural gas .
market prices for lng are not reported or posted .
in general , lng delivered to the u.s .
is tied to henry hub prices and will track with changes in u.s .
natural gas prices , while lng sold in europe and asia is indexed to crude oil prices and will track the movement of those prices .
we own a 45 percent interest in a methanol plant located in equatorial guinea through our investment in ampco .
gross sales of methanol from the plant totaled 960374 metric tonnes in 2009 and 792794 metric tonnes in 2008 .
methanol demand has a direct impact on ampco 2019s earnings .
because global demand for methanol is rather limited , changes in the supply-demand balance can have a significant impact on sales prices .
the 2010 chemical markets associates , inc .
estimates world demand for methanol in 2009 was 41 million metric tonnes .
our plant capacity is 1.1 million , or about 3 percent of total demand .
refining , marketing and transportation rm&t segment income depends largely on our refining and wholesale marketing gross margin , refinery throughputs and retail marketing gross margins for gasoline , distillates and merchandise.


we believe that the presentation of adjusted diluted earnings per share , which excludes withdrawal costs 2013 multiemployer pension funds , restructuring charges , loss on extinguishment of debt , and ( gain ) loss on business dispositions and impairments , net , provides an understanding of operational activities before the financial effect of certain items .
we use this measure , and believe investors will find it helpful , in understanding the ongoing performance of our operations separate from items that have a disproportionate effect on our results for a particular period .
we have incurred comparable charges and costs in prior periods , and similar types of adjustments can reasonably be expected to be recorded in future periods .
our definition of adjusted diluted earnings per share may not be comparable to similarly titled measures presented by other companies .
property and equipment , net in 2017 , we anticipate receiving approximately $ 975 million of property and equipment , net of proceeds from sales of property and equipment , as follows: .

trucks and equipment                                        | $ 350
----------------------------------------------------------- | ----------
landfill                                                    | 330
containers                                                  | 160
facilities and other                                        | 150
property and equipment received during 2017                 | 990
proceeds from sales of property and equipment               | -15 ( 15 )
property and equipment received net of proceeds during 2017 | $ 975

results of operations revenue we generate revenue primarily from our solid waste collection operations .
our remaining revenue is from other services , including transfer station , landfill disposal , recycling , and energy services .
our residential and small- container commercial collection operations in some markets are based on long-term contracts with municipalities .
certain of our municipal contracts have annual price escalation clauses that are tied to changes in an underlying base index such as a consumer price index .
we generally provide small-container commercial and large-container industrial collection services to customers under contracts with terms up to three years .
our transfer stations , landfills and , to a lesser extent , our recycling facilities generate revenue from disposal or tipping fees charged to third parties .
in general , we integrate our recycling operations with our collection operations and obtain revenue from the sale of recycled commodities .
our revenue from energy services consists mainly of fees we charge for the treatment of liquid and solid waste derived from the production of oil and natural gas .
other revenue consists primarily of revenue from national accounts , which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated waste handling services are subcontracted to local operators .
consequently , substantially all of this revenue is offset with related subcontract costs , which are recorded in cost of operations.


marathon oil corporation notes to consolidated financial statements stock-based performance unit awards 2013 during 2018 , 2017 and 2016 we granted 754140 , 563631 and 1205517 stock- based performance unit awards to officers .
at december 31 , 2018 , there were 1196176 units outstanding .
total stock-based performance unit awards expense was $ 13 million in 2018 , $ 8 million in 2017 and $ 6 million in 2016 .
the key assumptions used in the monte carlo simulation to determine the fair value of stock-based performance units granted in 2018 , 2017 and 2016 were: .

                                                        | 2018           | 2017           | 2016
------------------------------------------------------- | -------------- | -------------- | --------------
valuation date stock price                              | $ 14.17        | $ 14.17        | $ 14.17
expected annual dividend yield                          | 1.4% ( 1.4 % ) | 1.4% ( 1.4 % ) | 1.4% ( 1.4 % )
expected volatility                                     | 39% ( 39 % )   | 43% ( 43 % )   | 52% ( 52 % )
risk-free interest rate                                 | 2.5% ( 2.5 % ) | 2.6% ( 2.6 % ) | 2.4% ( 2.4 % )
fair value of stock-based performance units outstanding | $ 19.60        | $ 19.45        | $ 21.51

18 .
defined benefit postretirement plans and defined contribution plan we have noncontributory defined benefit pension plans covering substantially all domestic employees , as well as u.k .
employees who were hired before april 2010 .
certain employees located in e.g. , who are u.s .
or u.k .
based , also participate in these plans .
benefits under these plans are based on plan provisions specific to each plan .
for the u.k .
pension plan , the principal employer and plan trustees reached a decision to close the plan to future benefit accruals effective december 31 , 2015 .
we also have defined benefit plans for other postretirement benefits covering our u.s .
employees .
health care benefits are provided up to age 65 through comprehensive hospital , surgical and major medical benefit provisions subject to various cost- sharing features .
post-age 65 health care benefits are provided to certain u.s .
employees on a defined contribution basis .
life insurance benefits are provided to certain retiree beneficiaries .
these other postretirement benefits are not funded in advance .
employees hired after 2016 are not eligible for any postretirement health care or life insurance benefits.


part a0iii item a010 .
directors , executive officers and corporate governance for the information required by this item a010 with respect to our executive officers , see part a0i , item 1 .
of this report .
for the other information required by this item a010 , see 201celection of directors , 201d 201cnominees for election to the board of directors , 201d 201ccorporate governance 201d and 201csection a016 ( a ) beneficial ownership reporting compliance , 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
the proxy statement for our 2018 annual meeting will be filed within 120 a0days after the end of the fiscal year covered by this annual report on form 10-k .
item a011 .
executive compensation for the information required by this item a011 , see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d and 201cexecutive compensation 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
item a012 .
security ownership of certain beneficial owners and management and related stockholder matters for the information required by this item a012 with respect to beneficial ownership of our common stock , see 201csecurity ownership of certain beneficial owners and management 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
the following table sets forth certain information as of december a031 , 2017 regarding our equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants and rights weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1708928 $ 113.49 3629455 item a013 .
certain relationships and related transactions , and director independence for the information required by this item a013 , see 201ccertain transactions 201d and 201ccorporate governance 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
item a014 .
principal accounting fees and services for the information required by this item a014 , see 201caudit and non-audit fees 201d and 201caudit committee pre-approval procedures 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference. .

plan category                                          | number of securitiesto be issued uponexercise ofoutstanding options warrants and rights ( a ) ( b ) | weighted-averageexercise price ofoutstanding options warrants and rights | number of securitiesremaining available forfuture issuance underequity compensationplans ( excludingsecurities reflected in column ( a ) ) ( c )
------------------------------------------------------ | --------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 1708928                                                                                | $ 113.49                                                                 | 3629455

part a0iii item a010 .
directors , executive officers and corporate governance for the information required by this item a010 with respect to our executive officers , see part a0i , item 1 .
of this report .
for the other information required by this item a010 , see 201celection of directors , 201d 201cnominees for election to the board of directors , 201d 201ccorporate governance 201d and 201csection a016 ( a ) beneficial ownership reporting compliance , 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
the proxy statement for our 2018 annual meeting will be filed within 120 a0days after the end of the fiscal year covered by this annual report on form 10-k .
item a011 .
executive compensation for the information required by this item a011 , see 201ccompensation discussion and analysis , 201d 201ccompensation committee report , 201d and 201cexecutive compensation 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
item a012 .
security ownership of certain beneficial owners and management and related stockholder matters for the information required by this item a012 with respect to beneficial ownership of our common stock , see 201csecurity ownership of certain beneficial owners and management 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
the following table sets forth certain information as of december a031 , 2017 regarding our equity plans : plan category number of securities to be issued upon exercise of outstanding options , warrants and rights weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ( b ) ( c ) equity compensation plans approved by security holders 1708928 $ 113.49 3629455 item a013 .
certain relationships and related transactions , and director independence for the information required by this item a013 , see 201ccertain transactions 201d and 201ccorporate governance 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference .
item a014 .
principal accounting fees and services for the information required by this item a014 , see 201caudit and non-audit fees 201d and 201caudit committee pre-approval procedures 201d in the proxy statement for our 2018 annual meeting , which information is incorporated herein by reference.


entergy corporation and subsidiaries notes to financial statements this difference as a regulatory asset or liability on an ongoing basis , resulting in a zero net balance for the regulatory asset at the end of the lease term .
the amount was a net regulatory liability of $ 61.6 million and $ 27.8 million as of december 31 , 2013 and 2012 , respectively .
as of december 31 , 2013 , system energy had future minimum lease payments ( reflecting an implicit rate of 5.13% ( 5.13 % ) ) , which are recorded as long-term debt , as follows : amount ( in thousands ) .

                                            | amount ( in thousands )
------------------------------------------- | -----------------------
2014                                        | $ 51637
2015                                        | 52253
2016                                        | 13750
2017                                        | 13750
2018                                        | 13750
years thereafter                            | 247500
total                                       | 392640
less : amount representing interest         | 295226
present value of net minimum lease payments | $ 97414


2007 annual report 61 warranties : snap-on provides product warranties for specific product lines and accrues for estimated future warranty costs in the period in which the sale is recorded .
see note 15 for further information on warranties .
minority interests and equity earnings ( loss ) of unconsolidated affiliates : 201cminority interests and equity earnings ( loss ) , net of tax 201d on the accompanying consolidated statements of earnings is comprised of the following : ( amounts in millions ) 2007 2006 2005 .

( amounts in millions )             | 2007           | 2006           | 2005
----------------------------------- | -------------- | -------------- | --------------
minority interests                  | $ -4.9 ( 4.9 ) | $ -3.7 ( 3.7 ) | $ -3.5 ( 3.5 )
equity earnings ( loss ) net of tax | 2.4            | 2014           | 2.1
total                               | $ -2.5 ( 2.5 ) | $ -3.7 ( 3.7 ) | $ -1.4 ( 1.4 )

minority interests in consolidated subsidiaries of $ 17.3 million as of december 29 , 2007 , and $ 16.8 million as of december 30 , 2006 , are included in 201cother long-term liabilities 201d on the accompanying consolidated balance sheets .
investments in unconsolidated affiliates of $ 30.7 million as of december 29 , 2007 , and $ 30.6 million as of december 30 , 2006 , are included in 201cother assets 201d on the accompanying consolidated balance sheets .
foreign currency translation : the financial statements of snap-on 2019s foreign subsidiaries are translated into u.s .
dollars in accordance with sfas no .
52 , 201cforeign currency translation . 201d assets and liabilities of foreign subsidiaries are translated at current rates of exchange , and income and expense items are translated at the average exchange rate for the period .
the resulting translation adjustments are recorded directly into 201caccumulated other comprehensive income ( loss ) 201d on the accompanying consolidated balance sheets .
foreign exchange transactions resulted in pretax losses of $ 1.7 million in 2007 and $ 1.2 million in 2006 , and a pretax gain of $ 0.7 million in 2005 .
foreign exchange transaction gains and losses are reported in 201cother income ( expense ) - net 201d on the accompanying consolidated statements of earnings .
income taxes : in the ordinary course of business there is inherent uncertainty in quantifying income tax positions .
we assess income tax positions and record tax benefits for all years subject to examination based upon management 2019s evaluation of the facts , circumstances and information available at the reporting dates .
for those tax positions where it is more-likely-than-not that a tax benefit will be sustained , we record the largest amount of tax benefit with a greater than 50% ( 50 % ) likelihood of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information .
for those income tax positions where it is not more-likely-than-not that a tax benefit will be sustained , no tax benefit is recognized in the financial statements .
when applicable , associated interest and penalties are recognized as a component of income tax expense .
accrued interest and penalties are included within the related tax liability in the accompanying consolidated balance sheets .
deferred income taxes are provided for temporary differences arising from differences in bases of assets and liabilities for tax and financial reporting purposes .
deferred income taxes are recorded on temporary differences using enacted tax rates in effect for the year in which the temporary differences are expected to reverse .
the effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date .
see note 8 for further information on income taxes .
per share data : basic earnings per share calculations were computed by dividing net earnings by the corresponding weighted-average number of common shares outstanding for the period .
the dilutive effect of the potential exercise of outstanding options to purchase common shares is calculated using the treasury stock method .
snap-on had dilutive shares as of year-end 2007 , 2006 and 2005 , of 731442 shares , 911697 shares and 584222 shares , respectively .
options to purchase 493544 shares , 23000 shares and 612892 shares of snap-on common stock for the fiscal years ended 2007 , 2006 and 2005 , respectively , were not included in the computation of diluted earnings per share as the exercise prices of the options were greater than the average market price of the common stock for the respective year and , as a result , the effect on earnings per share would be anti-dilutive .
stock-based compensation : effective january 1 , 2006 , the company adopted sfas no .
123 ( r ) , 201cshare-based payment , 201d using the modified prospective method .
sfas no .
123 ( r ) requires entities to recognize the cost of employee services in exchange for awards of equity instruments based on the grant-date fair value of those awards ( with limited exceptions ) .
that cost , based on the estimated number of awards that are expected to vest , is recognized over the period during which the employee is required to provide the service in exchange for the award .
no compensation cost is recognized for awards for which employees do not render the requisite service .
upon adoption , the grant-date fair value of employee share options


interest expense , net was $ 26.4 million , $ 14.6 million , and $ 5.3 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
interest expense includes the amortization of deferred financing costs , bank fees , capital and built-to-suit lease interest and interest expense under the credit and other long term debt facilities .
amortization of deferred financing costs was $ 1.2 million , $ 0.8 million , and $ 0.6 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
the company monitors the financial health and stability of its lenders under the credit and other long term debt facilities , however during any period of significant instability in the credit markets lenders could be negatively impacted in their ability to perform under these facilities .
6 .
commitments and contingencies obligations under operating leases the company leases warehouse space , office facilities , space for its brand and factory house stores and certain equipment under non-cancelable operating leases .
the leases expire at various dates through 2033 , excluding extensions at the company 2019s option , and include provisions for rental adjustments .
the table below includes executed lease agreements for brand and factory house stores that the company did not yet occupy as of december 31 , 2016 and does not include contingent rent the company may incur at its stores based on future sales above a specified minimum or payments made for maintenance , insurance and real estate taxes .
the following is a schedule of future minimum lease payments for non-cancelable real property operating leases as of december 31 , 2016 as well as significant operating lease agreements entered into during the period after december 31 , 2016 through the date of this report : ( in thousands ) .

2017                                | $ 114857
----------------------------------- | ---------
2018                                | 127504
2019                                | 136040
2020                                | 133092
2021                                | 122753
2022 and thereafter                 | 788180
total future minimum lease payments | $ 1422426

included in selling , general and administrative expense was rent expense of $ 109.0 million , $ 83.0 million and $ 59.0 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively , under non-cancelable operating lease agreements .
included in these amounts was contingent rent expense of $ 13.0 million , $ 11.0 million and $ 11.0 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
sports marketing and other commitments within the normal course of business , the company enters into contractual commitments in order to promote the company 2019s brand and products .
these commitments include sponsorship agreements with teams and athletes on the collegiate and professional levels , official supplier agreements , athletic event sponsorships and other marketing commitments .
the following is a schedule of the company 2019s future minimum payments under its sponsorship and other marketing agreements as of december 31


sources of blackrock 2019s operating cash primarily include investment advisory , administration fees and securities lending revenue , performance fees , revenue from technology and risk management services , advisory and 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 2017 were $ 517 million and primarily reflected $ 497 million of investment purchases , $ 155 million of purchases of property and equipment , $ 73 million related to the first reserve transaction and $ 29 million related to the cachematrix transaction , partially offset by $ 205 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 2017 were $ 3094 million , primarily resulting from $ 1.4 billion of share repurchases , including $ 1.1 billion in open market- transactions and $ 321 million of employee tax withholdings related to employee stock transactions , $ 1.7 billion of cash dividend payments and $ 700 million of repayments of long- term borrowings , partially offset by $ 697 million of proceeds from issuance of long-term borrowings .
the company manages its financial condition and funding to maintain appropriate liquidity for the business .
liquidity resources at december 31 , 2017 and 2016 were as follows : ( in millions ) december 31 , december 31 , cash and cash equivalents ( 1 ) $ 6894 $ 6091 cash and cash equivalents held by consolidated vres ( 2 ) ( 63 ) ( 53 ) .

( in millions )                                           | december 31 2017 | december 31 2016
--------------------------------------------------------- | ---------------- | ----------------
cash and cash equivalents ( 1 )                           | $ 6894           | $ 6091
cash and cash equivalents held by consolidated vres ( 2 ) | -63 ( 63 )       | -53 ( 53 )
subtotal                                                  | 6831             | 6038
credit facility 2014 undrawn                              | 4000             | 4000
total liquidity resources ( 3 )                           | $ 10831          | $ 10038

total liquidity resources ( 3 ) $ 10831 $ 10038 ( 1 ) the percentage of cash and cash equivalents held by the company 2019s u.s .
subsidiaries was approximately 40% ( 40 % ) and 50% ( 50 % ) at december 31 , 2017 and 2016 , respectively .
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 a reduction for year-end incentive compensation accruals of approximately $ 1.5 billion and $ 1.3 billion for 2017 and 2016 , respectively , which are paid in the first quarter of the following year .
total liquidity resources increased $ 793 million during 2017 , primarily reflecting cash flows from operating activities , partially offset by cash payments of 2016 year-end incentive awards , share repurchases of $ 1.4 billion and cash dividend payments of $ 1.7 billion .
a significant portion of the company 2019s $ 3154 million of total investments , as adjusted , is illiquid in nature and , as such , cannot be readily convertible to cash .
share repurchases .
the company repurchased 2.6 million common shares in open market transactions under the share repurchase program for approximately $ 1.1 billion during 2017 .
at december 31 , 2017 , there were 6.4 million shares still authorized to be repurchased .
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 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 clients .
btc is subject to regulatory capital and liquid asset requirements administered by the office of the comptroller of the currency .
at december 31 , 2017 and 2016 , the company was required to maintain approximately $ 1.8 billion and $ 1.4 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 a result of the 2017 tax act and the one-time mandatory deemed repatriation tax on untaxed accumulated foreign earnings , a provisional amount of u.s .
income taxes was provided on the undistributed foreign earnings .
the financial statement basis in excess of tax basis of its foreign subsidiaries remains indefinitely reinvested in foreign operations .
the company will continue to evaluate its capital management plans throughout 2018 .
short-term borrowings 2017 revolving credit facility .
the company 2019s credit facility has an aggregate commitment amount of $ 4.0 billion and was amended in april 2017 to extend the maturity date to april 2022 ( the 201c2017 credit facility 201d ) .
the 2017 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 2017 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 2017 credit facility requires the company


in november 2016 , we issued $ 45 million of fixed rate term notes in two tranches to two insurance companies .
principal payments commence in 2023 and 2028 and the notes mature in 2029 and 2034 , respectively .
the notes carry interest rates of 2.87 and 3.10 , respectively .
we used proceeds of the notes to pay down borrowings under our revolving credit facility .
in january 2015 , we issued $ 75 million of fixed rate term notes to an insurance company .
principal payments commence in 2020 and the notes mature in 2030 .
the notes carry an interest rate of 3.52 percent .
we used proceeds of the notes to pay down borrowings under our revolving credit facility .
at december 31 , 2016 , we had available borrowing capacity of $ 310.8 million under this facility .
we believe that the combination of cash , available borrowing capacity and operating cash flow will provide sufficient funds to finance our existing operations for the foreseeable future .
our total debt increased to $ 323.6 million at december 31 , 2016 compared with $ 249.0 million at december 31 , 2015 , as our cash flows generated in the u.s were more than offset by our share repurchase activity and our purchase of aquasana .
as a result , our leverage , as measured by the ratio of total debt to total capitalization , was 17.6 percent at the end of 2016 compared with 14.7 percent at the end of 2015 .
our u.s .
pension plan continues to meet all funding requirements under erisa regulations .
we were not required to make a contribution to our pension plan in 2016 but made a voluntary $ 30 million contribution due to escalating pension benefit guaranty corporation insurance premiums .
we forecast that we will not be required to make a contribution to the plan in 2017 and we do not plan to make any voluntary contributions in 2017 .
for further information on our pension plans , see note 10 of the notes to consolidated financial statements .
during 2016 , our board of directors authorized the purchase of an additional 3000000 shares of our common stock .
in 2016 , we repurchased 3273109 shares at an average price of $ 41.30 per share and a total cost of $ 135.2 million .
a total of 4906403 shares remained on the existing repurchase authorization at december 31 , 2016 .
depending on factors such as stock price , working capital requirements and alternative investment opportunities , such as acquisitions , we expect to spend approximately $ 135 million on share repurchase activity in 2017 using a 10b5-1 repurchase plan .
in addition , we may opportunistically repurchase an additional $ 65 million of our shares in 2017 .
we have paid dividends for 77 consecutive years with payments increasing each of the last 25 years .
we paid dividends of $ 0.48 per share in 2016 compared with $ 0.38 per share in 2015 .
in january 2017 , we increased our dividend by 17 percent and anticipate paying dividends of $ 0.56 per share in 2017 .
aggregate contractual obligations a summary of our contractual obligations as of december 31 , 2016 , is as follows: .

( dollars in millions ) contractual obligations | ( dollars in millions ) total | ( dollars in millions ) less than1 year | ( dollars in millions ) 1 - 2years | ( dollars in millions ) 3 - 5years | more than5 years
----------------------------------------------- | ----------------------------- | --------------------------------------- | ---------------------------------- | ---------------------------------- | ----------------
long-term debt                                  | $ 323.6                       | $ 7.2                                   | $ 7.2                              | $ 202.9                            | $ 106.3
fixed rate interest                             | 38.6                          | 4.6                                     | 8.1                                | 7.2                                | 18.7
operating leases                                | 37.4                          | 19.5                                    | 7.9                                | 4.2                                | 5.8
purchase obligations                            | 150.8                         | 141.4                                   | 5.8                                | 3.6                                | 2014
pension and post-retirement obligations         | 66.0                          | 0.9                                     | 9.5                                | 8.6                                | 47.0
total                                           | $ 616.4                       | $ 173.6                                 | $ 38.5                             | $ 226.5                            | $ 177.8

as of december 31 , 2016 , our liability for uncertain income tax positions was $ 4.2 million .
due to the high degree of uncertainty regarding timing of potential future cash flows associated with these liabilities , we are unable to make a reasonably reliable estimate of the amount and period in which these liabilities might be paid .
we utilize blanket purchase orders to communicate expected annual requirements to many of our suppliers .
requirements under blanket purchase orders generally do not become committed until several weeks prior to our scheduled unit production .
the purchase obligation amount presented above represents the value of commitments that we consider firm .
recent accounting pronouncements refer to recent accounting pronouncements in note 1 of notes to consolidated financial statements.


goodwill and intangible asset impairment charge during the third quarter of fiscal year 2017 , we determined that the goodwill and indefinite-lived intangible assets ( primarily acquired trade names ) associated with our latin america reporting unit of our industrial gases 2013 americas segment were impaired .
we recorded a noncash impairment charge of $ 162.1 ( $ 154.1 attributable to air products , after-tax , or $ .70 per share ) , which was driven by lower economic growth and profitability in the region .
this impairment charge has been excluded from segment results .
refer to note 10 , goodwill , and note 11 , intangible assets , to the consolidated financial statements for additional information .
other income ( expense ) , net items recorded to "other income ( expense ) , net" arise from transactions and events not directly related to our principal income earning activities .
the detail of "other income ( expense ) , net" is presented in note 23 , supplemental information , to the consolidated financial statements .
2018 vs .
2017 other income ( expense ) , net of $ 50.2 decreased $ 70.8 , primarily due to lower income from the transition services agreements with versum and evonik , lower income from the sale of assets and investments , lower favorable contract settlements , and an unfavorable foreign exchange impact .
2017 vs .
2016 other income ( expense ) , net of $ 121.0 increased $ 71.6 , primarily due to income from transition services agreements with versum and evonik , income from the sale of assets and investments , including a gain of $ 12.2 ( $ 7.6 after-tax , or $ .03 per share ) resulting from the sale of a parcel of land , and a favorable foreign exchange impact .
interest expense .

                            | 2018    | 2017    | 2016
--------------------------- | ------- | ------- | -------
interest incurred           | $ 150.0 | $ 139.6 | $ 147.9
less : capitalized interest | 19.5    | 19.0    | 32.7
interest expense            | $ 130.5 | $ 120.6 | $ 115.2

2018 vs .
2017 interest incurred increased $ 10.4 as project financing associated with the lu'an joint venture and a higher average interest rate on the debt portfolio were partially offset by the impact from a lower average debt balance .
the change in capitalized interest was driven by an increase in the carrying value of projects under construction .
2017 vs .
2016 interest incurred decreased $ 8.3 as the impact from a lower average debt balance of $ 26 was partially offset by the impact from a higher average interest rate on the debt portfolio of $ 19 .
the change in capitalized interest was driven by a decrease in the carrying value of projects under construction , primarily as a result of our decision to exit from the efw business .
other non-operating income ( expense ) , net 2018 vs .
2017 other non-operating income ( expense ) , net of $ 5.1 decreased $ 11.5 .
during the fourth quarter of fiscal year 2018 , we recognized a pension settlement loss of $ 43.7 ( $ 33.2 after-tax , or $ .15 per share ) that primarily resulted from the transfer of certain pension payment obligations to an insurer for our u.s .
salaried and hourly plans through the purchase of an irrevocable , nonparticipating group annuity contract with plan assets .
for additional information , refer to note 16 , retirement benefits , to the consolidated financial statements .
this loss was partially offset by higher interest income on cash and cash items and short-term investments and lower other non-service pension expense .
the prior year pension expense included a settlement loss of $ 10.5 ( $ 6.6 after-tax , or $ .03 per share ) associated with the u.s .
supplementary pension plan and a settlement benefit of $ 2.3 related to the disposition of emd and pmd.


jpmorgan chase & co./2015 annual report 67 five-year stock performance the following table and graph compare the five-year cumulative total return for jpmorgan chase & co .
( 201cjpmorgan chase 201d or the 201cfirm 201d ) common stock with the cumulative return of the s&p 500 index , the kbw bank index and the s&p financial index .
the s&p 500 index is a commonly referenced united states of america ( 201cu.s . 201d ) equity benchmark consisting of leading companies from different economic sectors .
the kbw bank index seeks to reflect the performance of banks and thrifts that are publicly traded in the u.s .
and is composed of 24 leading national money center and regional banks and thrifts .
the s&p financial index is an index of 87 financial companies , all of which are components of the s&p 500 .
the firm is a component of all three industry indices .
the following table and graph assume simultaneous investments of $ 100 on december 31 , 2010 , in jpmorgan chase common stock and in each of the above indices .
the comparison assumes that all dividends are reinvested .
december 31 , ( in dollars ) 2010 2011 2012 2013 2014 2015 .

december 31 ( in dollars ) | 2010     | 2011    | 2012     | 2013     | 2014     | 2015
-------------------------- | -------- | ------- | -------- | -------- | -------- | --------
jpmorgan chase             | $ 100.00 | $ 80.03 | $ 108.98 | $ 148.98 | $ 163.71 | $ 177.40
kbw bank index             | 100.00   | 76.82   | 102.19   | 140.77   | 153.96   | 154.71
s&p financial index        | 100.00   | 82.94   | 106.78   | 144.79   | 166.76   | 164.15
s&p 500 index              | 100.00   | 102.11  | 118.44   | 156.78   | 178.22   | 180.67

december 31 , ( in dollars )


sales volumes in 2013 increased from 2012 , primarily for fluff pulp , reflecting improved market demand and a change in our product mix with a full year of fluff pulp production at our franklin , virginia mill .
average sales price realizations were lower for fluff pulp while prices for market pulp increased .
input costs for wood , fuels and chemicals were higher .
mill operating costs were significantly lower largely due to the absence of costs associated with the start-up of the franklin mill in 2012 .
planned maintenance downtime costs were higher .
in the first quarter of 2014 , sales volumes are expected to be slightly lower compared with the fourth quarter of 2013 .
average sales price realizations are expected to improve , reflecting the further realization of previously announced sales price increases for softwood pulp and fluff pulp .
input costs should be flat .
planned maintenance downtime costs should be about $ 11 million higher than in the fourth quarter of 2013 .
operating profits will also be negatively impacted by the severe winter weather in the first quarter of 2014 .
consumer packaging demand and pricing for consumer packaging products correlate closely with consumer spending and general economic activity .
in addition to prices and volumes , major factors affecting the profitability of consumer packaging are raw material and energy costs , freight costs , manufacturing efficiency and product mix .
consumer packaging net sales in 2013 increased 8% ( 8 % ) from 2012 , but decreased 7% ( 7 % ) from 2011 .
operating profits decreased 40% ( 40 % ) from 2012 and 1% ( 1 % ) from 2011 .
net sales and operating profits include the shorewood business in 2011 .
excluding costs associated with the permanent shutdown of a paper machine at our augusta , georgia mill and costs associated with the sale of the shorewood business , 2013 operating profits were 22% ( 22 % ) lower than in 2012 , and 43% ( 43 % ) lower than in 2011 .
benefits from higher sales volumes ( $ 45 million ) were offset by lower average sales price realizations and an unfavorable mix ( $ 50 million ) , higher operating costs including incremental costs resulting from the shutdown of a paper machine at our augusta , georgia mill ( $ 46 million ) and higher input costs ( $ 6 million ) .
in addition , operating profits in 2013 included restructuring costs of $ 45 million related to the permanent shutdown of a paper machine at our augusta , georgia mill and $ 2 million of costs associated with the sale of the shorewood business .
operating profits in 2012 included a gain of $ 3 million related to the sale of the shorewood business , while operating profits in 2011 included a $ 129 million fixed asset impairment charge for the north american shorewood business and $ 72 million for other charges associated with the sale of the shorewood business .
consumer packaging .

in millions      | 2013   | 2012   | 2011
---------------- | ------ | ------ | ------
sales            | $ 3435 | $ 3170 | $ 3710
operating profit | 161    | 268    | 163

north american consumer packaging net sales were $ 2.0 billion in 2013 compared with $ 2.0 billion in 2012 and $ 2.5 billion in 2011 .
operating profits were $ 63 million ( $ 110 million excluding paper machine shutdown costs and costs related to the sale of the shorewood business ) in 2013 compared with $ 165 million ( $ 162 million excluding charges associated with the sale of the shorewood business ) in 2012 and $ 35 million ( $ 236 million excluding asset impairment charges and other costs associated with the sale of the shorewood business ) in 2011 .
coated paperboard sales volumes in 2013 were higher than in 2012 reflecting stronger market demand .
average sales price realizations were lower year-over- year despite the realization of price increases in the second half of 2013 .
input costs for wood and energy increased , but were partially offset by lower costs for chemicals .
planned maintenance downtime costs were slightly lower .
market-related downtime was about 24000 tons in 2013 compared with about 113000 tons in 2012 .
the permanent shutdown of a paper machine at our augusta , georgia mill in the first quarter of 2013 reduced capacity by 140000 tons in 2013 compared with 2012 .
foodservice sales volumes increased slightly in 2013 compared with 2012 despite softer market demand .
average sales margins were higher reflecting lower input costs for board and resins and a more favorable product mix .
operating costs and distribution costs were both higher .
the u.s.shorewood business was sold december 31 , 2011 and the non-u.s .
business was sold in january looking ahead to the first quarter of 2014 , coated paperboard sales volumes are expected to be seasonally weaker than in the fourth quarter of 2013 .
average sales price realizations are expected to be slightly higher , and margins should also benefit from a more favorable product mix .
input costs are expected to be higher for energy , chemicals and wood .
planned maintenance downtime costs should be $ 8 million lower with a planned maintenance outage scheduled at the augusta mill in the first quarter .
the severe winter weather in the first quarter of 2014 will negatively impact operating profits .
foodservice sales volumes are expected to be seasonally lower .
average sales margins are expected to improve due to the realization of sales price increases effective with our january contract openers and a more favorable product mix.


the city council 2019s advisors and entergy new orleans .
in february 2018 the city council approved the settlement , which deferred cost recovery to the 2018 entergy new orleans rate case , but also stated that an adjustment for 2018-2019 ami costs can be filed in the rate case and that , for all subsequent ami costs , the mechanism to be approved in the 2018 rate case will allow for the timely recovery of such costs .
sources of capital entergy new orleans 2019s sources to meet its capital requirements include : 2022 internally generated funds ; 2022 cash on hand ; 2022 debt and preferred membership interest issuances ; and 2022 bank financing under new or existing facilities .
entergy new orleans may refinance , redeem , or otherwise retire debt prior to maturity , to the extent market conditions and interest rates are favorable .
entergy new orleans 2019s receivables from the money pool were as follows as of december 31 for each of the following years. .

2017             | 2016             | 2015             | 2014
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 12723          | $ 14215          | $ 15794          | $ 442

see note 4 to the financial statements for a description of the money pool .
entergy new orleans has a credit facility in the amount of $ 25 million scheduled to expire in november 2018 .
the credit facility allows entergy new orleans to issue letters of credit against $ 10 million of the borrowing capacity of the facility .
as of december 31 , 2017 , there were no cash borrowings and a $ 0.8 million letter of credit was outstanding under the facility .
in addition , entergy new orleans is a party to an uncommitted letter of credit facility as a means to post collateral to support its obligations to miso . a0 as of december 31 , 2017 , a $ 1.4 million letter of credit was outstanding under entergy new orleans 2019s letter of credit a0facility .
see note 4 to the financial statements for additional discussion of the credit facilities .
entergy new orleans obtained authorization from the ferc through october 2019 for short-term borrowings not to exceed an aggregate amount of $ 150 million at any time outstanding and long-term borrowings and securities issuances .
see note 4 to the financial statements for further discussion of entergy new orleans 2019s short-term borrowing limits .
the long-term securities issuances of entergy new orleans are limited to amounts authorized not only by the ferc , but also by the city council , and the current city council authorization extends through june 2018 .
entergy new orleans , llc and subsidiaries management 2019s financial discussion and analysis state and local rate regulation the rates that entergy new orleans charges for electricity and natural gas significantly influence its financial position , results of operations , and liquidity .
entergy new orleans is regulated and the rates charged to its customers are determined in regulatory proceedings .
a governmental agency , the city council , is primarily responsible for approval of the rates charged to customers .
retail rates see 201calgiers asset transfer 201d below for discussion of the algiers asset transfer .
as a provision of the settlement agreement approved by the city council in may 2015 providing for the algiers asset transfer , it was agreed that , with limited exceptions , no action may be taken with respect to entergy new orleans 2019s base rates until rates are implemented