state street corporation notes to consolidated financial statements ( continued ) with respect to the 5.25% ( 5.25 % ) subordinated bank notes due 2018 , state street bank is required to make semi- annual interest payments on the outstanding principal balance of the notes on april 15 and october 15 of each year , and the notes qualify for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines .
with respect to the 5.30% ( 5.30 % ) subordinated notes due 2016 and the floating-rate subordinated notes due 2015 , state street bank is required to make semi-annual interest payments on the outstanding principal balance of the 5.30% ( 5.30 % ) subordinated notes on january 15 and july 15 of each year , and quarterly interest payments on the outstanding principal balance of the floating-rate notes on march 8 , june 8 , september 8 and december 8 of each year .
each of the subordinated notes qualifies for inclusion in tier 2 regulatory capital under current federal regulatory capital guidelines .
note 11 .
commitments , guarantees and contingencies commitments : we had unfunded off-balance sheet commitments to extend credit totaling $ 21.30 billion and $ 17.86 billion as of december 31 , 2013 and 2012 , respectively .
the potential losses associated with these commitments equal the gross contractual amounts , and do not consider the value of any collateral .
approximately 75% ( 75 % ) of our unfunded commitments to extend credit expire within one year from the date of issue .
since many of these commitments are expected to expire or renew without being drawn upon , the gross contractual amounts do not necessarily represent our future cash requirements .
guarantees : off-balance sheet guarantees are composed of indemnified securities financing , stable value protection , unfunded commitments to purchase assets , and standby letters of credit .
the potential losses associated with these guarantees equal the gross contractual amounts , and do not consider the value of any collateral .
the following table presents the aggregate gross contractual amounts of our off-balance sheet guarantees as of december 31 , 2013 and 2012 .
amounts presented do not reflect participations to independent third parties. .

( in millions )                  | 2013     | 2012
-------------------------------- | -------- | --------
indemnified securities financing | $ 320078 | $ 302341
stable value protection          | 24906    | 33512
asset purchase agreements        | 4685     | 5063
standby letters of credit        | 4612     | 4552

indemnified securities financing on behalf of our clients , we lend their securities , as agent , to brokers and other institutions .
in most circumstances , we indemnify our clients for the fair market value of those securities against a failure of the borrower to return such securities .
we require the borrowers to maintain collateral in an amount equal to or in excess of 100% ( 100 % ) of the fair market value of the securities borrowed .
securities on loan and the collateral are revalued daily to determine if additional collateral is necessary or if excess collateral is required to be returned to the borrower .
collateral received in connection with our securities lending services is held by us as agent and is not recorded in our consolidated statement of condition .
the cash collateral held by us as agent is invested on behalf of our clients .
in certain cases , the cash collateral is invested in third-party repurchase agreements , for which we indemnify the client against loss of the principal invested .
we require the counterparty to the indemnified repurchase agreement to provide collateral in an amount equal to or in excess of 100% ( 100 % ) of the amount of the repurchase agreement .
in our role as agent , the indemnified repurchase agreements and the related collateral held by us are not recorded in our consolidated statement of condition.


republic services , inc .
notes to consolidated financial statements 2014 ( continued ) 16 .
financial instruments fuel hedges we have entered into multiple swap agreements designated as cash flow hedges to mitigate some of our exposure related to changes in diesel fuel prices .
these swaps qualified for , and were designated as , effective hedges of changes in the prices of forecasted diesel fuel purchases ( fuel hedges ) .
the following table summarizes our outstanding fuel hedges as of december 31 , 2015 : year gallons hedged weighted average contract price per gallon .

year | gallons hedged | weighted average contractprice per gallon
---- | -------------- | -----------------------------------------
2016 | 27000000       | $ 3.57
2017 | 12000000       | 2.92

if the national u.s .
on-highway average price for a gallon of diesel fuel as published by the department of energy exceeds the contract price per gallon , we receive the difference between the average price and the contract price ( multiplied by the notional gallons ) from the counterparty .
if the average price is less than the contract price per gallon , we pay the difference to the counterparty .
the fair values of our fuel hedges are determined using standard option valuation models with assumptions about commodity prices based on those observed in underlying markets ( level 2 in the fair value hierarchy ) .
the aggregate fair values of our outstanding fuel hedges as of december 31 , 2015 and 2014 were current liabilities of $ 37.8 million and $ 34.4 million , respectively , and have been recorded in other accrued liabilities in our consolidated balance sheets .
the ineffective portions of the changes in fair values resulted in a loss of $ 0.4 million and $ 0.5 million for the years ended december 31 , 2015 and 2014 respectively , and a gain of less than $ 0.1 million for the year ended december 31 , 2013 , and have been recorded in other income , net in our consolidated statements of income .
total ( loss ) gain recognized in other comprehensive ( loss ) income for fuel hedges ( the effective portion ) was $ ( 2.0 ) million , $ ( 24.2 ) million and $ 2.4 million , for the years ended december 31 , 2015 , 2014 and 2013 , respectively .
recycling commodity hedges revenue from the sale of recycled commodities is primarily from sales of old corrugated cardboard and old newspaper .
from time to time we use derivative instruments such as swaps and costless collars designated as cash flow hedges to manage our exposure to changes in prices of these commodities .
we had no outstanding recycling commodity hedges as of december 31 , 2015 and 2014 .
no amounts were recognized in other income , net in our consolidated statements of income for the ineffective portion of the changes in fair values during the years ended december 31 , 2015 , 2014 and 2013 .
total gain ( loss ) recognized in other comprehensive income for recycling commodity hedges ( the effective portion ) was $ 0.1 million and $ ( 0.1 ) million for the years ended december 31 , 2014 and 2013 , respectively .
no amount was recognized in other comprehensive income for 2015 .
fair value measurements in measuring fair values of assets and liabilities , we use valuation techniques that maximize the use of observable inputs ( level 1 ) and minimize the use of unobservable inputs ( level 3 ) .
we also use market data or assumptions that we believe market participants would use in pricing an asset or liability , including assumptions about risk when appropriate.


s c h e d u l e i v ( continued ) ace limited and subsidiaries s u p p l e m e n t a l i n f o r m a t i o n c o n c e r n i n g r e i n s u r a n c e premiums earned for the years ended december 31 , 2008 , 2007 , and 2006 ( in millions of u.s .
dollars ) direct amount ceded to companies assumed from other companies net amount percentage of amount assumed to .

for the years ended december 31 2008 2007 and 2006 ( in millions of u.s . dollars ) | direct amount | ceded to other companies | assumed from other companies | net amount | percentage of amount assumed to net
----------------------------------------------------------------------------------- | ------------- | ------------------------ | ---------------------------- | ---------- | -----------------------------------
2008                                                                                | $ 16087       | $ 6144                   | $ 3260                       | $ 13203    | 25% ( 25 % )
2007                                                                                | $ 14673       | $ 5834                   | $ 3458                       | $ 12297    | 28% ( 28 % )
2006                                                                                | $ 13562       | $ 5198                   | $ 3461                       | $ 11825    | 29% ( 29 % )


kimco realty corporation and subsidiaries notes to consolidated financial statements , continued uncertain tax positions : the company is subject to income tax in certain jurisdictions outside the u.s. , principally canada and mexico .
the statute of limitations on assessment of tax varies from three to seven years depending on the jurisdiction and tax issue .
tax returns filed in each jurisdiction are subject to examination by local tax authorities .
the company is currently under audit by the canadian revenue agency , mexican tax authority and the u.s .
internal revenue service ( 201cirs 201d ) .
in october 2011 , the irs issued a notice of proposed adjustment , which proposes pursuant to section 482 of the code , to disallow a capital loss claimed by krs on the disposition of common shares of valad property ltd. , an australian publicly listed company .
because the adjustment is being made pursuant to section 482 of the code , the irs believes it can assert a 100 percent 201cpenalty 201d tax pursuant to section 857 ( b ) ( 7 ) of the code and disallow the capital loss deduction .
the notice of proposed adjustment indicates the irs 2019 intention to impose the 100 percent 201cpenalty 201d tax on the company in the amount of $ 40.9 million and disallowing the capital loss claimed by krs .
the company and its outside counsel have considered the irs 2019 assessment and believe that there is sufficient documentation establishing a valid business purpose for the transfer , including recent case history showing support for similar positions .
accordingly , the company strongly disagrees with the irs 2019 position on the application of section 482 of the code to the disposition of the shares , the imposition of the 100 percent penalty tax and the simultaneous assertion of the penalty tax and disallowance of the capital loss deduction .
the company received a notice of proposed assessment and filed a written protest and requested an irs appeals office conference .
an appeals hearing was attended by management and its attorneys , the irs compliance group and an irs appeals officer in november , 2014 , at which time irs compliance presented arguments in support of their position , as noted herein .
management and its attorneys presented rebuttal arguments in support of its position .
the matter is currently under consideration by the appeals officer .
the company intends to vigorously defend its position in this matter and believes it will prevail .
resolutions of these audits are not expected to have a material effect on the company 2019s financial statements .
during 2013 , the company early adopted asu 2013-11 prospectively and reclassified a portion of its reserve for uncertain tax positions .
the reserve for uncertain tax positions included amounts related to the company 2019s canadian operations .
the company has unrecognized tax benefits reported as deferred tax assets and are available to settle adjustments made with respect to the company 2019s uncertain tax positions in canada .
the company reduced its reserve for uncertain tax positions by $ 12.3 million associated with its canadian operations and reduced its deferred tax assets in accordance with asu 2013-11 .
the company does not believe that the total amount of unrecognized tax benefits as of december 31 , 2014 , will significantly increase or decrease within the next 12 months .
as of december 31 , 2014 , the company 2019s canadian uncertain tax positions , which reduce its deferred tax assets , aggregated $ 10.4 million .
the liability for uncertain tax benefits principally consists of estimated foreign , federal and state income tax liabilities in years for which the statute of limitations is open .
open years range from 2008 through 2014 and vary by jurisdiction and issue .
the aggregate changes in the balance of unrecognized tax benefits for the years ended december 31 , 2014 and 2013 were as follows ( in thousands ) : .

                                                    | 201 4  | 2013
--------------------------------------------------- | ------ | ----------------
balance beginning of year                           | $ 4590 | $ 16890
increases for tax positions related to current year | 59     | 15
reduction due to adoption of asu 2013-11 ( a )      | -      | -12315 ( 12315 )
balance end of year                                 | $ 4649 | $ 4590

( a ) this amount was reclassified against the related deferred tax asset relating to the company 2019s early adoption of asu 2013-11 as discussed above.


american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) from december 1 through may 31 of each year .
during the 2008 , 2007 and 2006 offering periods employees purchased 55764 , 48886 and 53210 shares , respectively , at weighted average prices per share of $ 30.08 , $ 33.93 and $ 24.98 , respectively .
the fair value of the espp offerings is estimated on the offering period commencement date using a black-scholes pricing model with the expense recognized over the expected life , which is the six month offering period over which employees accumulate payroll deductions to purchase the company 2019s common stock .
the weighted average fair value for the espp shares purchased during 2008 , 2007 and 2006 were $ 7.89 , $ 9.09 and $ 6.79 , respectively .
at december 31 , 2008 , 8.8 million shares remain reserved for future issuance under the plan .
key assumptions used to apply this pricing model for the years ended december 31 , are as follows: .

                                                               | 2008                                          | 2007                                          | 2006
-------------------------------------------------------------- | --------------------------------------------- | --------------------------------------------- | -----------------------------------------
range of risk free interest rates                              | 1.99% ( 1.99 % ) 20143.28% ( 20143.28 % )     | 4.98% ( 4.98 % ) 20145.05% ( 20145.05 % )     | 5.01% ( 5.01 % ) 20145.17% ( 20145.17 % )
weighted average risk-free interest rate                       | 2.58% ( 2.58 % )                              | 5.02% ( 5.02 % )                              | 5.08% ( 5.08 % )
expected life of the shares                                    | 6 months                                      | 6 months                                      | 6 months
range of expected volatility of underlying stock price         | 27.85% ( 27.85 % ) 201428.51% ( 201428.51 % ) | 27.53% ( 27.53 % ) 201428.74% ( 201428.74 % ) | 29.60% ( 29.60 % )
weighted average expected volatility of underlying stock price | 28.51% ( 28.51 % )                            | 28.22% ( 28.22 % )                            | 29.60% ( 29.60 % )
expected annual dividends                                      | n/a                                           | n/a                                           | n/a

13 .
stockholders 2019 equity warrants 2014in january 2003 , the company issued warrants to purchase approximately 11.4 million shares of its common stock in connection with an offering of 808000 units , each consisting of $ 1000 principal amount at maturity of ati 12.25% ( 12.25 % ) senior subordinated discount notes due 2008 and a warrant to purchase 14.0953 shares of the company 2019s common stock .
these warrants became exercisable on january 29 , 2006 at an exercise price of $ 0.01 per share .
as these warrants expired on august 1 , 2008 , none were outstanding as of december 31 , in august 2005 , the company completed its merger with spectrasite , inc .
and assumed outstanding warrants to purchase shares of spectrasite , inc .
common stock .
as of the merger completion date , each warrant was exercisable for two shares of spectrasite , inc .
common stock at an exercise price of $ 32 per warrant .
upon completion of the merger , each warrant to purchase shares of spectrasite , inc .
common stock automatically converted into a warrant to purchase shares of the company 2019s common stock , such that upon exercise of each warrant , the holder has a right to receive 3.575 shares of the company 2019s common stock in lieu of each share of spectrasite , inc .
common stock that would have been receivable under each assumed warrant prior to the merger .
upon completion of the company 2019s merger with spectrasite , inc. , these warrants were exercisable for approximately 6.8 million shares of common stock .
of these warrants , warrants to purchase approximately 1.8 million and 2.0 million shares of common stock remained outstanding as of december 31 , 2008 and 2007 , respectively .
these warrants will expire on february 10 , 2010 .
stock repurchase programs 2014during the year ended december 31 , 2008 , the company repurchased an aggregate of approximately 18.3 million shares of its common stock for an aggregate of $ 697.1 million , including commissions and fees , pursuant to its publicly announced stock repurchase programs , as described below.


consolidated 2005 results of operations was an estimated reduction of gross profit and a corresponding decrease to inventory , at cost , of $ 5.2 million .
store pre-opening costs pre-opening costs related to new store openings and the construction periods are expensed as incurred .
property and equipment property and equipment are recorded at cost .
the company provides for depreciation and amortization on a straight-line basis over the following estimated useful lives: .

land improvements                | 20
-------------------------------- | -----
buildings                        | 39-40
furniture fixtures and equipment | 3-10

improvements of leased properties are amortized over the shorter of the life of the applicable lease term or the estimated useful life of the asset .
impairment of long-lived assets when indicators of impairment are present , the company evaluates the carrying value of long-lived assets , other than goodwill , in relation to the operating performance and future cash flows or the appraised values of the underlying assets .
in accordance with sfas 144 , 201caccounting for the impairment or disposal of long-lived assets , 201d the company reviews for impairment stores open more than two years for which current cash flows from operations are negative .
impairment results when the carrying value of the assets exceeds the undiscounted future cash flows over the life of the lease .
the company 2019s estimate of undiscounted future cash flows over the lease term is based upon historical operations of the stores and estimates of future store profitability which encompasses many factors that are subject to variability and difficult to predict .
if a long-lived asset is found to be impaired , the amount recognized for impairment is equal to the difference between the carrying value and the asset 2019s fair value .
the fair value is estimated based primarily upon future cash flows ( discounted at the company 2019s credit adjusted risk-free rate ) or other reasonable estimates of fair market value .
assets to be disposed of are adjusted to the fair value less the cost to sell if less than the book value .
the company recorded impairment charges , included in sg&a expense , of approximately $ 9.4 million in 2006 , $ 0.6 million in 2005 and $ 0.2 million in 2004 to reduce the carrying value of certain of its stores 2019 assets as deemed necessary due to negative sales trends and cash flows at these locations .
the majority of the 2006 charges were recorded pursuant to certain strategic initiatives discussed in note 2 .
other assets other assets consist primarily of long-term investments , qualifying prepaid expenses , debt issuance costs which are amortized over the life of the related obligations , utility and security deposits , life insurance policies and goodwill.


the company granted 1020 performance shares .
the vesting of these shares is contingent on meeting stated goals over a performance period .
beginning with restricted stock grants in september 2010 , dividends are accrued on restricted class a common stock and restricted stock units and are paid once the restricted stock vests .
the following table summarizes restricted stock and performance shares activity for 2010 : number of shares weighted average grant date fair value .

                                | number of shares | weighted average grant date fair value
------------------------------- | ---------------- | --------------------------------------
outstanding at december 31 2009 | 116677           | $ 280
granted                         | 134245           | 275
vested                          | -34630 ( 34630 ) | 257
cancelled                       | -19830 ( 19830 ) | 260
outstanding at december 31 2010 | 196462           | 283

the total fair value of restricted stock that vested during the years ended december 31 , 2010 , 2009 and 2008 , was $ 10.3 million , $ 6.2 million and $ 2.5 million , respectively .
eligible employees may acquire shares of cme group 2019s class a common stock using after-tax payroll deductions made during consecutive offering periods of approximately six months in duration .
shares are purchased at the end of each offering period at a price of 90% ( 90 % ) of the closing price of the class a common stock as reported on the nasdaq .
compensation expense is recognized on the dates of purchase for the discount from the closing price .
in 2010 , 2009 and 2008 , a total of 4371 , 4402 and 5600 shares , respectively , of class a common stock were issued to participating employees .
these shares are subject to a six-month holding period .
annual expense of $ 0.1 million for the purchase discount was recognized in 2010 , 2009 and 2008 , respectively .
non-executive directors receive an annual award of class a common stock with a value equal to $ 75000 .
non-executive directors may also elect to receive some or all of the cash portion of their annual stipend , up to $ 25000 , in shares of stock based on the closing price at the date of distribution .
as a result , 7470 , 11674 and 5509 shares of class a common stock were issued to non-executive directors during 2010 , 2009 and 2008 , respectively .
these shares are not subject to any vesting restrictions .
expense of $ 2.4 million , $ 2.5 million and $ 2.4 million related to these stock-based payments was recognized for the years ended december 31 , 2010 , 2009 and 2008 , respectively.


apple inc .
| 2016 form 10-k | 20 company stock performance the following graph shows a comparison of cumulative total shareholder return , calculated on a dividend reinvested basis , for the company , the s&p 500 index , the s&p information technology index and the dow jones u.s .
technology supersector index for the five years ended september 24 , 2016 .
the graph assumes $ 100 was invested in each of the company 2019s common stock , the s&p 500 index , the s&p information technology index and the dow jones u.s .
technology supersector index as of the market close on september 23 , 2011 .
note that historic stock price performance is not necessarily indicative of future stock price performance .
* $ 100 invested on 9/23/11 in stock or index , including reinvestment of dividends .
data points are the last day of each fiscal year for the company 2019s common stock and september 30th for indexes .
copyright a9 2016 s&p , a division of mcgraw hill financial .
all rights reserved .
copyright a9 2016 dow jones & co .
all rights reserved .
september september september september september september .

                                             | september2011 | september2012 | september2013 | september2014 | september2015 | september2016
-------------------------------------------- | ------------- | ------------- | ------------- | ------------- | ------------- | -------------
apple inc .                                  | $ 100         | $ 166         | $ 123         | $ 183         | $ 212         | $ 213
s&p 500 index                                | $ 100         | $ 130         | $ 155         | $ 186         | $ 185         | $ 213
s&p information technology index             | $ 100         | $ 132         | $ 142         | $ 183         | $ 187         | $ 230
dow jones u.s . technology supersector index | $ 100         | $ 130         | $ 137         | $ 178         | $ 177         | $ 217


news corporation notes to the consolidated financial statements consideration over the fair value of the net tangible and intangible assets acquired was recorded as goodwill .
the allocation is as follows ( in millions ) : assets acquired: .

intangible assets         | $ 220
------------------------- | ----------
goodwill                  | 115
net liabilities           | -50 ( 50 )
total net assets acquired | $ 285

the acquired intangible assets primarily relate to broadcast licenses , which have a fair value of approximately $ 185 million , tradenames , which have a fair value of approximately $ 27 million , and customer relationships with a fair value of approximately $ 8 million .
the broadcast licenses and tradenames have indefinite lives and the customer relationships are being amortized over a weighted-average useful life of approximately 6 years .
wireless group 2019s results are included within the news and information services segment , and it is considered a separate reporting unit for purposes of the company 2019s annual goodwill impairment review .
rea group european business in december 2016 , rea group , in which the company holds a 61.6% ( 61.6 % ) interest , sold its european business for approximately $ 140 million ( approximately 20ac133 million ) in cash , which resulted in a pre-tax gain of $ 107 million for the fiscal year ended june 30 , 2017 .
the sale allows rea group to focus on its core businesses in australia and asia .
in addition to the acquisitions noted above and the investments referenced in note 6 2014investments , the company used $ 62 million of cash for additional acquisitions during fiscal 2017 , primarily consisting of australian regional media ( 201carm 201d ) .
arm 2019s results are included within the news and information services segment .
note 5 .
restructuring programs the company recorded restructuring charges of $ 92 million , $ 71 million and $ 142 million for the fiscal years ended june 30 , 2019 , 2018 and 2017 , respectively , of which $ 77 million , $ 58 million and $ 133 million related to the news and information services segment , respectively .
the restructuring charges recorded in fiscal 2019 , 2018 and 2017 were primarily for employee termination benefits.


entergy corporation and subsidiaries management's financial discussion and analysis 2022 the deferral in august 2004 of $ 7.5 million of fossil plant maintenance and voluntary severance program costs at entergy new orleans as a result of a stipulation approved by the city council .
2003 compared to 2002 net revenue , which is entergy's measure of gross margin , consists of operating revenues net of : 1 ) fuel , fuel-related , and purchased power expenses and 2 ) other regulatory credits .
following is an analysis of the change in net revenue comparing 2003 to 2002. .

                                      | ( in millions )
------------------------------------- | ----------------
2002 net revenue                      | $ 4209.6
base rate increases                   | 66.2
base rate decreases                   | -23.3 ( 23.3 )
deferred fuel cost revisions          | 56.2
asset retirement obligation           | 42.9
net wholesale revenue                 | 23.2
march 2002 ark . settlement agreement | -154.0 ( 154.0 )
other                                 | -6.3 ( 6.3 )
2003 net revenue                      | $ 4214.5

base rates increased net revenue due to base rate increases at entergy mississippi and entergy new orleans that became effective in january 2003 and june 2003 , respectively .
entergy gulf states implemented base rate decreases in its louisiana jurisdiction effective june 2002 and january 2003 .
the january 2003 base rate decrease of $ 22.1 million had a minimal impact on net income due to a corresponding reduction in nuclear depreciation and decommissioning expenses associated with the change in accounting estimate to reflect an assumed extension of river bend's useful life .
the deferred fuel cost revisions variance was due to a revised unbilled sales pricing estimate made in december 2002 and further revision of that estimate in the first quarter of 2003 to more closely align the fuel component of that pricing with expected recoverable fuel costs at entergy louisiana .
the asset retirement obligation variance was due to the implementation of sfas 143 , "accounting for asset retirement obligations" adopted in january 2003 .
see "critical accounting estimates 2013 nuclear decommissioning costs" for more details on sfas 143 .
the increase was offset by increased depreciation and decommissioning expenses and had an insignificant effect on net income .
the increase in net wholesale revenue was primarily due to an increase in sales volume to municipal and cooperative customers .
the march 2002 settlement agreement variance reflects the absence in 2003 of the effect of recording the ice storm settlement approved by the apsc in 2002 .
this settlement resulted in previously deferred revenues at entergy arkansas per the transition cost account mechanism being recorded in net revenue in the second quarter of 2002 .
the decrease was offset by a corresponding decrease in other operation and maintenance expenses and had a minimal effect on net income .
gross operating revenues and regulatory credits gross operating revenues include an increase in fuel cost recovery revenues of $ 682 million and $ 53 million in electric and gas sales , respectively , primarily due to higher fuel rates in 2003 resulting from increases in the market prices of purchased power and natural gas .
as such , this revenue increase was offset by increased fuel and purchased power expenses.


humana inc .
notes to consolidated financial statements 2014 ( continued ) the grant-date fair value of the award will be estimated using option-pricing models .
in addition , certain tax effects of stock option exercises will be reported as a financing activity rather than an operating activity in the statements of cash flows .
we adopted sfas 123r on january 1 , 2006 under the retrospective transition method using the black-scholes pricing model .
the effect of expensing stock options under a fair value approach using the black-scholes pricing model on diluted earnings per common share for the years ended december 31 , 2005 , 2004 and 2003 is disclosed on page 69 .
in addition , the classification of cash inflows from any excess tax benefit associated with exercising stock options will change from an operating activity to a financing activity in the consolidated statements of cash flows with no impact on total cash flows .
we estimate the impact of this change in classification will decrease operating cash flows ( and increase financing cash flows ) by approximately $ 15.5 million in 2005 , $ 3.7 million in 2004 , and $ 15.2 million in 2003 .
stock option expense after adopting sfas 123r is not expected to be materially different than our pro forma disclosure on page 69 and is dependent on levels of stock options granted during 2006 .
3 .
acquisitions in january 2006 , our commercial segment reached an agreement to acquire cha service company , or cha health , a health plan serving employer groups in kentucky , for cash consideration of approximately $ 60.0 million plus any excess statutory surplus .
this transaction , which is subject to regulatory approval , is expected to close effective in the second quarter of 2006 .
on december 20 , 2005 , our commercial segment acquired corphealth , inc. , or corphealth , a behavioral health care management company , for cash consideration of approximately $ 54.2 million , including transaction costs .
this acquisition allows humana to integrate coverage of medical and behavior health benefits .
net tangible assets acquired of $ 6.0 million primarily consisted of cash and cash equivalents .
the purchase price exceeded the estimated fair value of the net tangible assets acquired by approximately $ 48.2 million .
we preliminarily allocated this excess purchase price to other intangible assets of $ 8.6 million and associated deferred tax liabilities of $ 3.2 million , and non-deductible goodwill of $ 42.8 million .
the other intangible assets , which consist primarily of customer contracts , have a weighted average useful life of 14.7 years .
the allocation is subject to change pending completion of the valuation by a third party valuation specialist firm assisting us in evaluating the fair value of the assets acquired .
on february 16 , 2005 , our government segment acquired careplus health plans of florida , or careplus , as well as its affiliated 10 medical centers and pharmacy company .
careplus provides medicare advantage hmo plans and benefits to medicare advantage members in miami-dade , broward and palm beach counties .
this acquisition enhances our medicare market position in south florida .
we paid approximately $ 444.9 million in cash , including transaction costs .
we financed the transaction with $ 294.0 million of borrowings under our credit agreement and $ 150.9 million of cash on hand .
the purchase price is subject to a balance sheet settlement process with a nine month claims run-out period .
this settlement , which will be reflected as an adjustment to goodwill , is not expected to be material .
the fair value of the acquired tangible assets ( assumed liabilities ) consisted of the following: .

                                             | ( in thousands )
-------------------------------------------- | ----------------
cash and cash equivalents                    | $ 92116
premiums receivable and other current assets | 6510
property and equipment and other assets      | 21315
medical and other expenses payable           | -37375 ( 37375 )
other current liabilities                    | -23359 ( 23359 )
other liabilities                            | -5915 ( 5915 )
net tangible assets acquired                 | $ 53292


page 71 of 94 notes to consolidated financial statements ball corporation and subsidiaries 16 .
shareholders 2019 equity ( continued ) on october 24 , 2007 , ball announced the discontinuance of the company 2019s discount on the reinvestment of dividends associated with the company 2019s dividend reinvestment and voluntary stock purchase plan for non- employee shareholders .
the 5 percent discount was discontinued on november 1 , 2007 .
accumulated other comprehensive earnings ( loss ) the activity related to accumulated other comprehensive earnings ( loss ) was as follows : ( $ in millions ) foreign currency translation pension and postretirement items , net of tax effective financial derivatives , net of tax accumulated comprehensive earnings ( loss ) .

( $ in millions )                      | foreign currency translation | pension and other postretirement items net of tax | effective financial derivatives net of tax | accumulated other comprehensive earnings ( loss )
-------------------------------------- | ---------------------------- | ------------------------------------------------- | ------------------------------------------ | -------------------------------------------------
december 31 2004                       | $ 148.9                      | $ -126.3 ( 126.3 )                                | $ 10.6                                     | $ 33.2
2005 change                            | -74.3 ( 74.3 )               | -43.6 ( 43.6 )                                    | -16.0 ( 16.0 )                             | -133.9 ( 133.9 )
december 31 2005                       | 74.6                         | -169.9 ( 169.9 )                                  | -5.4 ( 5.4 )                               | -100.7 ( 100.7 )
2006 change                            | 57.2                         | 55.9                                              | 6.0                                        | 119.1
effect of sfas no . 158 adoption ( a ) | 2013                         | -47.9 ( 47.9 )                                    | 2013                                       | -47.9 ( 47.9 )
december 31 2006                       | 131.8                        | -161.9 ( 161.9 )                                  | 0.6                                        | -29.5 ( 29.5 )
2007 change                            | 90.0                         | 57.9                                              | -11.5 ( 11.5 )                             | 136.4
december 31 2007                       | $ 221.8                      | $ -104.0 ( 104.0 )                                | $ -10.9 ( 10.9 )                           | $ 106.9

( a ) within the company 2019s 2006 annual report , the consolidated statement of changes in shareholders 2019 equity for the year ended december 31 , 2006 , included a transition adjustment of $ 47.9 million , net of tax , related to the adoption of sfas no .
158 , 201cemployers 2019 accounting for defined benefit pension plans and other postretirement plans , an amendment of fasb statements no .
87 , 88 , 106 and 132 ( r ) , 201d as a component of 2006 comprehensive earnings rather than only as an adjustment to accumulated other comprehensive loss .
the 2006 amounts have been revised to correct the previous reporting .
notwithstanding the 2005 distribution pursuant to the jobs act , management 2019s intention is to indefinitely reinvest foreign earnings .
therefore , no taxes have been provided on the foreign currency translation component for any period .
the change in the pension and other postretirement items is presented net of related tax expense of $ 31.3 million and $ 2.9 million for 2007 and 2006 , respectively , and a related tax benefit of $ 27.3 million for 2005 .
the change in the effective financial derivatives is presented net of related tax benefit of $ 3.2 million for 2007 , related tax expense of $ 5.7 million for 2006 and related tax benefit of $ 10.7 million for 2005 .
stock-based compensation programs effective january 1 , 2006 , ball adopted sfas no .
123 ( revised 2004 ) , 201cshare based payment , 201d which is a revision of sfas no .
123 and supersedes apb opinion no .
25 .
the new standard establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services , including stock option and restricted stock grants .
the major differences for ball are that ( 1 ) expense is now recorded in the consolidated statements of earnings for the fair value of new stock option grants and nonvested portions of grants made prior to january 1 , 2006 , and ( 2 ) the company 2019s deposit share program ( discussed below ) is no longer a variable plan that is marked to current market value each month through earnings .
upon adoption of sfas no .
123 ( revised 2004 ) , ball has chosen to use the modified prospective transition method and the black-scholes valuation model.


dish network corporation notes to consolidated financial statements - continued ciel ii .
ciel ii , a canadian dbs satellite , was launched in december 2008 and commenced commercial operation during february 2009 .
this satellite is accounted for as a capital lease and depreciated over the term of the satellite service agreement .
we have leased 100% ( 100 % ) of the capacity on ciel ii for an initial 10 year term .
as of december 31 , 2011 and 2010 , we had $ 500 million capitalized for the estimated fair value of satellites acquired under capital leases included in 201cproperty and equipment , net , 201d with related accumulated depreciation of $ 151 million and $ 109 million , respectively .
in our consolidated statements of operations and comprehensive income ( loss ) , we recognized $ 43 million , $ 43 million and $ 40 million in depreciation expense on satellites acquired under capital lease agreements during the years ended december 31 , 2011 , 2010 and 2009 , respectively .
future minimum lease payments under the capital lease obligation , together with the present value of the net minimum lease payments as of december 31 , 2011 are as follows ( in thousands ) : for the years ended december 31 .

2012                                                                                | $ 84715
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------
2013                                                                                | 77893
2014                                                                                | 76296
2015                                                                                | 75970
2016                                                                                | 75970
thereafter                                                                                | 314269
total minimum lease payments                                                                                | 705113
less : amount representing lease of the orbital location and estimated executory costs ( primarily insurance and maintenance ) including profit thereon included in total minimum lease payments | -323382 ( 323382 )
net minimum lease payments                                                                                | 381731
less : amount representing interest                                                                                | -109823 ( 109823 )
present value of net minimum lease payments                                                                                | 271908
less : current portion                                                                                | -29202 ( 29202 )
long-term portion of capital lease obligations                                                                                | $ 242706

the summary of future maturities of our outstanding long-term debt as of december 31 , 2011 is included in the commitments table in note 16 .
12 .
income taxes and accounting for uncertainty in income taxes income taxes our income tax policy is to record the estimated future tax effects of temporary differences between the tax bases of assets and liabilities and amounts reported on our consolidated balance sheets , as well as probable operating loss , tax credit and other carryforwards .
deferred tax assets are offset by valuation allowances when we believe it is more likely than not that net deferred tax assets will not be realized .
we periodically evaluate our need for a valuation allowance .
determining necessary valuation allowances requires us to make assessments about historical financial information as well as the timing of future events , including the probability of expected future taxable income and available tax planning opportunities .
we file consolidated tax returns in the u.s .
the income taxes of domestic and foreign subsidiaries not included in the u.s .
tax group are presented in our consolidated financial statements based on a separate return basis for each tax paying entity .
as of december 31 , 2011 , we had no net operating loss carryforwards ( 201cnols 201d ) for federal income tax purposes and $ 13 million of nol benefit for state income tax purposes .
the state nols begin to expire in the year 2020 .
in addition , there are $ 5 million of tax benefits related to credit carryforwards which are partially offset by a valuation allowance and $ 14 million benefit of capital loss carryforwards which are fully offset by a valuation allowance .
the credit carryforwards begin to expire in the year 2012.


152 the pnc financial services group , inc .
2013 form 10-k in addition to the proceedings or other matters described above , pnc and persons to whom we may have indemnification obligations , in the normal course of business , are subject to various other pending and threatened legal proceedings in which claims for monetary damages and other relief are asserted .
we do not anticipate , at the present time , that the ultimate aggregate liability , if any , arising out of such other legal proceedings will have a material adverse effect on our financial position .
however , we cannot now determine whether or not any claims asserted against us or others to whom we may have indemnification obligations , whether in the proceedings or other matters described above or otherwise , will have a material adverse effect on our results of operations in any future reporting period , which will depend on , among other things , the amount of the loss resulting from the claim and the amount of income otherwise reported for the reporting period .
note 20 commitments in the normal course of business , we have various commitments outstanding , certain of which are not included on our consolidated balance sheet .
the following table presents our outstanding commitments to extend credit along with significant other commitments as of december 31 , 2017 and december 31 , 2016 , respectively .
table 98 : commitments to extend credit and other commitments in millions december 31 december 31 .

in millions                                             | december 31 2017 | december 31 2016
------------------------------------------------------- | ---------------- | ----------------
commitments to extend credit                            |                  |
total commercial lending                                | $ 112125         | $ 108256
home equity lines of credit                             | 17852            | 17438
credit card                                             | 24911            | 22095
other                                                   | 4753             | 4192
total commitments to extend credit                      | 159641           | 151981
net outstanding standby letters ofcredit ( a )          | 8651             | 8324
reinsurance agreements ( b )                            | 1654             | 1835
standby bond purchase agreements ( c )                  | 843              | 790
other commitments ( d )                                 | 1732             | 967
total commitments to extendcredit and other commitments | $ 172521         | $ 163897

commitments to extend credit , or net unfunded loan commitments , represent arrangements to lend funds or provide liquidity subject to specified contractual conditions .
these commitments generally have fixed expiration dates , may require payment of a fee , and contain termination clauses in the event the customer 2019s credit quality deteriorates .
net outstanding standby letters of credit we issue standby letters of credit and share in the risk of standby letters of credit issued by other financial institutions , in each case to support obligations of our customers to third parties , such as insurance requirements and the facilitation of transactions involving capital markets product execution .
approximately 91% ( 91 % ) and 94% ( 94 % ) of our net outstanding standby letters of credit were rated as pass as of december 31 , 2017 and december 31 , 2016 , respectively , with the remainder rated as below pass .
an internal credit rating of pass indicates the expected risk of loss is currently low , while a rating of below pass indicates a higher degree of risk .
if the customer fails to meet its financial or performance obligation to the third party under the terms of the contract or there is a need to support a remarketing program , then upon a draw by a beneficiary , subject to the terms of the letter of credit , we would be obligated to make payment to them .
the standby letters of credit outstanding on december 31 , 2017 had terms ranging from less than one year to seven years .
as of december 31 , 2017 , assets of $ 1.3 billion secured certain specifically identified standby letters of credit .
in addition , a portion of the remaining standby letters of credit issued on behalf of specific customers is also secured by collateral or guarantees that secure the customers 2019 other obligations to us .
the carrying amount of the liability for our obligations related to standby letters of credit and participations in standby letters of credit was $ .2 billion at december 31 , 2017 and is included in other liabilities on our consolidated balance sheet.


j.p .
morgan chase & co .
/ 2003 annual report 33 corporate credit allocation in 2003 , tss was assigned a corporate credit allocation of pre- tax earnings and the associated capital related to certain credit exposures managed within ib 2019s credit portfolio on behalf of clients shared with tss .
prior periods have been revised to reflect this allocation .
for 2003 , the impact to tss of this change increased pre-tax operating results by $ 36 million and average allocated capital by $ 712 million , and it decreased sva by $ 65 million .
pre-tax operating results were $ 46 million lower than in 2002 , reflecting lower loan volumes and higher related expenses , slightly offset by a decrease in credit costs .
business outlook tss revenue in 2004 is expected to benefit from improved global equity markets and from two recent acquisitions : the november 2003 acquisition of the bank one corporate trust portfolio , and the january 2004 acquisition of citigroup 2019s electronic funds services business .
tss also expects higher costs as it integrates these acquisitions and continues strategic investments to sup- port business expansion .
by client segment tss dimensions of 2003 revenue diversification by business revenue by geographic region investor services 36% ( 36 % ) other 1% ( 1 % ) institutional trust services 23% ( 23 % ) treasury services 40% ( 40 % ) large corporations 21% ( 21 % ) middle market 18% ( 18 % ) banks 11% ( 11 % ) nonbank financial institutions 44% ( 44 % ) public sector/governments 6% ( 6 % ) europe , middle east & africa 27% ( 27 % ) asia/pacific 9% ( 9 % ) the americas 64% ( 64 % ) ( a ) includes the elimination of revenue related to shared activities with chase middle market in the amount of $ 347 million .
year ended december 31 , operating revenue .

year ended december 31 , ( in millions ) | year ended december 31 , 2003 | year ended december 31 , 2002 | change
---------------------------------------- | ----------------------------- | ----------------------------- | ----------
treasury services                        | $ 1927                        | $ 1818                        | 6% ( 6 % )
investor services                        | 1449                          | 1513                          | -4 ( 4 )
institutional trust services ( a )       | 928                           | 864                           | 7
other ( a ) ( b )                        | -312 ( 312 )                  | -303 ( 303 )                  | -3 ( 3 )
total treasury & securities services     | $ 3992                        | $ 3892                        | 3% ( 3 % )

( a ) includes a portion of the $ 41 million gain on sale of a nonstrategic business in 2003 : $ 1 million in institutional trust services and $ 40 million in other .
( b ) includes the elimination of revenues related to shared activities with chase middle market , and a $ 50 million gain on sale of a non-u.s .
securities clearing firm in 2002.


notes to consolidated financial statements 2014 ( continued ) note 14 2014commitments and contingencies leases we conduct a major part of our operations using leased facilities and equipment .
many of these leases have renewal and purchase options and provide that we pay the cost of property taxes , insurance and maintenance .
rent expense on all operating leases for fiscal 2010 , 2009 and 2008 was $ 32.8 million , $ 30.2 million , and $ 30.4 million , respectively .
future minimum lease payments for all noncancelable leases at may 31 , 2010 were as follows : operating leases .

                                    | operating leases
----------------------------------- | ----------------
2011                                | $ 9856
2012                                | 3803
2013                                | 2538
2014                                | 1580
2015                                | 928
thereafter                          | 1428
total future minimum lease payments | $ 20133

we are party to a number of claims and lawsuits incidental to our business .
in the opinion of management , the reasonably possible outcome of such matters , individually or in the aggregate , will not have a material adverse impact on our financial position , liquidity or results of operations .
we define operating taxes as tax contingencies that are unrelated to income taxes , such as sales and property taxes .
during the course of operations , we must interpret the meaning of various operating tax matters in the united states and in the foreign jurisdictions in which we do business .
taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations as they relate to such operating tax matters , which could result in the payment of additional taxes in those jurisdictions .
as of may 31 , 2010 and 2009 we did not have a liability for operating tax items .
the amount of the liability is based on management 2019s best estimate given our history with similar matters and interpretations of current laws and regulations .
bin/ica agreements in connection with our acquisition of merchant credit card operations of banks , we have entered into sponsorship or depository and processing agreements with certain of the banks .
these agreements allow us to use the banks 2019 identification numbers , referred to as bank identification number for visa transactions and interbank card association number for mastercard transactions , to clear credit card transactions through visa and mastercard .
certain of such agreements contain financial covenants , and we were in compliance with all such covenants as of may 31 , 2010 .
on june 18 , 2010 , cibc provided notice that it will not renew its sponsorship with us for visa in canada after the initial ten year term .
as a result , their canadian visa sponsorship will expire in march 2011 .
we are


has decreased during the period from 2002 to 2004 , principally due to the increase in earned premium and due to cost containment measures undertaken by management .
in business insurance and personal lines , the expense ratio is expected to decrease further in 2005 , largely as a result of expected increases in earned premium .
in specialty commercial , the expense ratio is expected to increase slightly in 2005 due to changes in the business mix , most notably the company 2019s decision in the fourth quarter of 2004 to exit the multi-peril crop insurance program which will eliminate significant expense reimbursements from the specialty commercial segment .
policyholder dividend ratio : the policyholder dividend ratio is the ratio of policyholder dividends to earned premium .
combined ratio : the combined ratio is the sum of the loss and loss adjustment expense ratio , the expense ratio and the policyholder dividend ratio .
this ratio is a relative measurement that describes the related cost of losses and expense for every $ 100 of earned premiums .
a combined ratio below 100.0 demonstrates underwriting profit ; a combined ratio above 100.0 demonstrates underwriting losses .
the combined ratio has decreased from 2003 to 2004 primarily because of improvement in the expense ratio .
the combined ratio in 2005 could be significantly higher or lower than the 2004 combined ratio depending on the level of catastrophe losses , but will also be impacted by changes in pricing and an expected moderation in favorable loss cost trends .
catastrophe ratio : the catastrophe ratio ( a component of the loss and loss adjustment expense ratio ) represents the ratio of catastrophe losses ( net of reinsurance ) to earned premiums .
a catastrophe is an event that causes $ 25 or more in industry insured property losses and affects a significant number of property and casualty policyholders and insurers .
by their nature , catastrophe losses vary dramatically from year to year .
based on the mix and geographic dispersion of premium written and estimates derived from various catastrophe loss models , the company 2019s expected catastrophe ratio over the long-term is 3.0 points .
before considering the reduction in ongoing operation 2019s catastrophe reserves related to september 11 of $ 298 in 2004 , the catastrophe ratio in 2004 was 5.3 points .
see 201crisk management strategy 201d below for a discussion of the company 2019s property catastrophe risk management program that serves to mitigate the company 2019s net exposure to catastrophe losses .
combined ratio before catastrophes and prior accident year development : the combined ratio before catastrophes and prior accident year development represents the combined ratio for the current accident year , excluding the impact of catastrophes .
the company believes this ratio is an important measure of the trend in profitability since it removes the impact of volatile and unpredictable catastrophe losses and prior accident year reserve development .
before considering catastrophes , the combined ratio related to current accident year business has improved from 2002 to 2004 principally due to earned pricing increases and favorable claim frequency .
other operations underwriting results : the other operations segment is responsible for managing operations of the hartford that have discontinued writing new or renewal business as well as managing the claims related to asbestos and environmental exposures .
as such , neither earned premiums nor underwriting ratios are meaningful financial measures .
instead , management believes that underwriting result is a more meaningful measure .
the net underwriting loss for 2002 through 2004 is primarily due to prior accident year loss development , including $ 2.6 billion of net asbestos reserve strengthening in 2003 .
reserve estimates within other operations , including estimates for asbestos and environmental claims , are inherently uncertain .
refer to the other operations segment md&a for further discussion of other operation's underwriting results .
total property & casualty investment earnings .

                                                | 2004           | 2003           | 2002
----------------------------------------------- | -------------- | -------------- | --------------
investment yield after-tax                      | 4.1% ( 4.1 % ) | 4.2% ( 4.2 % ) | 4.5% ( 4.5 % )
net realized capital gains ( losses ) after-tax | $ 87           | $ 165          | $ -44 ( 44 )

the investment return , or yield , on property & casualty 2019s invested assets is an important element of the company 2019s earnings since insurance products are priced with the assumption that premiums received can be invested for a period of time before loss and loss adjustment expenses are paid .
for longer tail lines , such as workers 2019 compensation and general liability , claims are paid over several years and , therefore , the premiums received for these lines of business can generate significant investment income .
him determines the appropriate allocation of investments by asset class and measures the investment yield performance for each asset class against market indices or other benchmarks .
due to the emphasis on preservation of capital and the need to maintain sufficient liquidity to satisfy claim obligations , the vast majority of property and casualty 2019s invested assets have been held in fixed maturities , including , among other asset classes , corporate bonds , municipal bonds , government debt , short-term debt , mortgage-


part ii item 5 2013 market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities ( a ) ( 1 ) our common stock is listed on the new york stock exchange and is traded under the symbol 201cpnc . 201d at the close of business on february 16 , 2017 , there were 60763 common shareholders of record .
holders of pnc common stock are entitled to receive dividends when declared by the board of directors out of funds legally available for this purpose .
our board of directors may not pay or set apart dividends on the common stock until dividends for all past dividend periods on any series of outstanding preferred stock and certain outstanding capital securities issued by the parent company have been paid or declared and set apart for payment .
the board of directors presently intends to continue the policy of paying quarterly cash dividends .
the amount of any future dividends will depend on economic and market conditions , our financial condition and operating results , and other factors , including contractual restrictions and applicable government regulations and policies ( such as those relating to the ability of bank and non-bank subsidiaries to pay dividends to the parent company and regulatory capital limitations ) .
the amount of our dividend is also currently subject to the results of the supervisory assessment of capital adequacy and capital planning processes undertaken by the federal reserve and our primary bank regulators as part of the comprehensive capital analysis and review ( ccar ) process as described in the supervision and regulation section in item 1 of this report .
the federal reserve has the power to prohibit us from paying dividends without its approval .
for further information concerning dividend restrictions and other factors that could limit our ability to pay dividends , as well as restrictions on loans , dividends or advances from bank subsidiaries to the parent company , see the supervision and regulation section in item 1 , item 1a risk factors , the capital and liquidity management portion of the risk management section in item 7 , and note 10 borrowed funds , note 15 equity and note 18 regulatory matters in the notes to consolidated financial statements in item 8 of this report , which we include here by reference .
we include here by reference additional information relating to pnc common stock under the common stock prices/ dividends declared section in the statistical information ( unaudited ) section of item 8 of this report .
we include here by reference the information regarding our compensation plans under which pnc equity securities are authorized for issuance as of december 31 , 2016 in the table ( with introductory paragraph and notes ) that appears in item 12 of this report .
our stock transfer agent and registrar is : computershare trust company , n.a .
250 royall street canton , ma 02021 800-982-7652 registered shareholders may contact this phone number regarding dividends and other shareholder services .
we include here by reference the information that appears under the common stock performance graph caption at the end of this item 5 .
( a ) ( 2 ) none .
( b ) not applicable .
( c ) details of our repurchases of pnc common stock during the fourth quarter of 2016 are included in the following table : in thousands , except per share data 2016 period total shares purchased ( a ) average paid per total shares purchased as part of publicly announced programs ( b ) maximum number of shares that may yet be purchased under the programs ( b ) .

2016 period        | total sharespurchased ( a ) | averagepricepaid pershare | total sharespurchased aspartofpubliclyannouncedprograms ( b ) | maximumnumber ofshares thatmay yet bepurchasedundertheprograms ( b )
------------------ | --------------------------- | ------------------------- | ------------------------------------------------------------- | --------------------------------------------------------------------
october 1 2013 31  | 2277                        | $ 91.15                   | 2245                                                          | 61962
november 1 2013 30 | 1243                        | $ 103.50                  | 1243                                                          | 60719
december 1 2013 31 | 1449                        | $ 115.65                  | 1449                                                          | 59270
total              | 4969                        | $ 101.39                  |                                                               |

( a ) includes pnc common stock purchased in connection with our various employee benefit plans generally related to forfeitures of unvested restricted stock awards and shares used to cover employee payroll tax withholding requirements .
note 11 employee benefit plans and note 12 stock based compensation plans in the notes to consolidated financial statements in item 8 of this report include additional information regarding our employee benefit and equity compensation plans that use pnc common stock .
( b ) on march 11 , 2015 , we announced that our board of directors approved the establishment of a stock repurchase program authorization in the amount of 100 million shares of pnc common stock , effective april 1 , 2015 .
repurchases are made in open market or privately negotiated transactions and the timing and exact amount of common stock repurchases will depend on a number of factors including , among others , market and general economic conditions , regulatory capital considerations , alternative uses of capital , the potential impact on our credit ratings , and contractual and regulatory limitations , including the results of the supervisory assessment of capital adequacy and capital planning processes undertaken by the federal reserve as part of the ccar process .
in june 2016 , we announced share repurchase programs of up to $ 2.0 billion for the four quarter period beginning with the third quarter of 2016 , including repurchases of up to $ 200 million related to employee benefit plans .
in january 2017 , we announced a $ 300 million increase in our share repurchase programs for this period .
in the fourth quarter of 2016 , we repurchased 4.9 million shares of common stock on the open market , with an average price of $ 101.47 per share and an aggregate repurchase price of $ .5 billion .
see the liquidity and capital management portion of the risk management section in item 7 of this report for more information on the share repurchase programs under the share repurchase authorization for the period july 1 , 2016 through june 30 , 2017 included in the 2016 capital plan accepted by the federal reserve .
28 the pnc financial services group , inc .
2013 form 10-k


compared to 2007 .
we reduced personal injury expense by $ 80 million in 2007 as a result of fewer than expected claims and lower than expected average settlement costs .
in 2008 , we reduced personal injury expense and asbestos-related costs $ 82 million based on the results of updated personal injury actuarial studies and a reassessment of our potential liability for resolution of current and future asbestos claims .
in addition , environmental and toxic tort expenses were $ 7 million lower in 2008 compared to 2007 .
other costs were lower in 2007 compared to 2006 driven primarily by a reduction in personal injury expense .
actuarial studies completed during 2007 resulted in a reduction in personal injury expense of $ 80 million , which was partially offset by an adverse development with respect to one claim .
settlement of insurance claims in 2007 related to hurricane rita , and higher equity income also drove expenses lower in 2007 versus 2006 .
conversely , the year-over-year comparison was affected by the settlement of insurance claims totaling $ 23 million in 2006 related to the january 2005 west coast storm and a $ 9 million gain in 2006 from the sale of two company-owned airplanes .
non-operating items millions of dollars 2008 2007 2006 % (  % ) change 2008 v 2007 % (  % ) change 2007 v 2006 .

millions of dollars | 2008           | 2007           | 2006         | % (  % ) change 2008 v 2007 | % (  % ) change 2007 v 2006
------------------- | -------------- | -------------- | ------------ | --------------------------- | ---------------------------
other income        | $ 92           | $ 116          | $ 118        | ( 21 ) % (  % )             | ( 2 ) % (  % )
interest expense    | -511 ( 511 )   | -482 ( 482 )   | -477 ( 477 ) | 6                           | 1
income taxes        | -1318 ( 1318 ) | -1154 ( 1154 ) | -919 ( 919 ) | 14 % (  % )                 | 26 % (  % )

other income 2013 other income decreased in 2008 compared to 2007 due to lower gains from real estate sales and decreased returns on cash investments reflecting lower interest rates .
higher rental and licensing income and lower interest expense on our sale of receivables program partially offset the decreases .
lower net gains from non-operating asset sales ( primarily real estate ) drove the reduction in other income in 2007 .
recognition of rental income in 2006 from the settlement of a rent dispute also contributed to the year-over-year decrease in other income .
cash investment returns increased $ 21 million due to larger cash balances and higher interest rates .
interest expense 2013 interest expense increased in 2008 versus 2007 due to a higher weighted-average debt level of $ 8.3 billion , compared to $ 7.3 billion in 2007 .
a lower effective interest rate of 6.1% ( 6.1 % ) in 2008 , compared to 6.6% ( 6.6 % ) in 2007 , partially offset the effects of the higher weighted-average debt level .
an increase in the weighted-average debt levels to $ 7.3 billion from $ 7.1 billion in 2006 generated higher interest expense in 2007 .
a lower effective interest rate of 6.6% ( 6.6 % ) in 2007 , compared to 6.7% ( 6.7 % ) in 2006 , partially offset the effects of the higher debt level .
income taxes 2013 income taxes were higher in 2008 compared to 2007 , driven by higher pre-tax income .
our effective tax rates were 36.1% ( 36.1 % ) and 38.4% ( 38.4 % ) in 2008 and 2007 , respectively .
the lower effective tax rate in 2008 resulted from several reductions in tax expense related to federal audits and state tax law changes .
in addition , the effective tax rate in 2007 was increased by illinois legislation that increased deferred tax expense in the third quarter of 2007 .
income taxes were $ 235 million higher in 2007 compared to 2006 , due primarily to higher pre-tax income and the effect of new tax legislation in the state of illinois that changed how we determine the amount of our income subject to illinois tax .
the illinois legislation increased our deferred tax expense by $ 27 million in 2007 .
our effective tax rates were 38.4% ( 38.4 % ) and 36.4% ( 36.4 % ) in 2007 and 2006 , respectively.


entergy corporation and subsidiaries notes to financial statements equitable discretion and not require refunds for the 20-month period from september 13 , 2001 - may 2 , 2003 .
because the ruling on refunds relied on findings in the interruptible load proceeding , which is discussed in a separate section below , the ferc concluded that the refund ruling will be held in abeyance pending the outcome of the rehearing requests in that proceeding .
on the second issue , the ferc reversed its prior decision and ordered that the prospective bandwidth remedy begin on june 1 , 2005 ( the date of its initial order in the proceeding ) rather than january 1 , 2006 , as it had previously ordered .
pursuant to the october 2011 order , entergy was required to calculate the additional bandwidth payments for the period june - december 2005 utilizing the bandwidth formula tariff prescribed by the ferc that was filed in a december 2006 compliance filing and accepted by the ferc in an april 2007 order .
as is the case with bandwidth remedy payments , these payments and receipts will ultimately be paid by utility operating company customers to other utility operating company customers .
in december 2011 , entergy filed with the ferc its compliance filing that provides the payments and receipts among the utility operating companies pursuant to the ferc 2019s october 2011 order .
the filing shows the following payments/receipts among the utility operating companies : payments ( receipts ) ( in millions ) .

                              | payments ( receipts ) ( in millions )
----------------------------- | -------------------------------------
entergy arkansas              | $ 156
entergy gulf states louisiana | ( $ 75 )
entergy louisiana             | $ 2014
entergy mississippi           | ( $ 33 )
entergy new orleans           | ( $ 5 )
entergy texas                 | ( $ 43 )

entergy arkansas made its payment in january 2012 .
in february 2012 , entergy arkansas filed for an interim adjustment to its production cost allocation rider requesting that the $ 156 million payment be collected from customers over the 22-month period from march 2012 through december 2013 .
in march 2012 the apsc issued an order stating that the payment can be recovered from retail customers through the production cost allocation rider , subject to refund .
the lpsc and the apsc have requested rehearing of the ferc 2019s october 2011 order .
in december 2013 the lpsc filed a petition for a writ of mandamus at the united states court of appeals for the d.c .
circuit .
in its petition , the lpsc requested that the d.c .
circuit issue an order compelling the ferc to issue a final order on pending rehearing requests .
in its response to the lpsc petition , the ferc committed to rule on the pending rehearing request before the end of february .
in january 2014 the d.c .
circuit denied the lpsc's petition .
the apsc , the lpsc , the puct , and other parties intervened in the december 2011 compliance filing proceeding , and the apsc and the lpsc also filed protests .
calendar year 2013 production costs the liabilities and assets for the preliminary estimate of the payments and receipts required to implement the ferc 2019s remedy based on calendar year 2013 production costs were recorded in december 2013 , based on certain year-to-date information .
the preliminary estimate was recorded based on the following estimate of the payments/receipts among the utility operating companies for 2014.


corporate & institutional banking corporate & institutional banking earned $ 1.9 billion in 2011 and $ 1.8 billion in 2010 .
the increase in earnings was primarily due to an improvement in the provision for credit losses , which was a benefit in 2011 , partially offset by a reduction in the value of commercial mortgage servicing rights and lower net interest income .
we continued to focus on adding new clients , increasing cross sales , and remaining committed to strong expense discipline .
asset management group asset management group earned $ 141 million for 2011 compared with $ 137 million for 2010 .
assets under administration were $ 210 billion at december 31 , 2011 and $ 212 billion at december 31 , 2010 .
earnings for 2011 reflected a benefit from the provision for credit losses and growth in noninterest income , partially offset by higher noninterest expense and lower net interest income .
for 2011 , the business delivered strong sales production , grew high value clients and benefitted from significant referrals from other pnc lines of business .
over time and with stabilized market conditions , the successful execution of these strategies and the accumulation of our strong sales performance are expected to create meaningful growth in assets under management and noninterest income .
residential mortgage banking residential mortgage banking earned $ 87 million in 2011 compared with $ 269 million in 2010 .
the decline in earnings was driven by an increase in noninterest expense associated with increased costs for residential mortgage foreclosure- related expenses , primarily as a result of ongoing governmental matters , and lower net interest income , partially offset by an increase in loan originations and higher loans sales revenue .
blackrock our blackrock business segment earned $ 361 million in 2011 and $ 351 million in 2010 .
the higher business segment earnings from blackrock for 2011 compared with 2010 were primarily due to an increase in revenue .
non-strategic assets portfolio this business segment ( formerly distressed assets portfolio ) consists primarily of acquired non-strategic assets that fall outside of our core business strategy .
non-strategic assets portfolio had earnings of $ 200 million in 2011 compared with a loss of $ 57 million in 2010 .
the increase was primarily attributable to a lower provision for credit losses partially offset by lower net interest income .
201cother 201d reported earnings of $ 376 million for 2011 compared with earnings of $ 386 million for 2010 .
the decrease in earnings primarily reflected the noncash charge related to the redemption of trust preferred securities in the fourth quarter of 2011 and the gain related to the sale of a portion of pnc 2019s blackrock shares in 2010 partially offset by lower integration costs in 2011 .
consolidated income statement review our consolidated income statement is presented in item 8 of this report .
net income for 2011 was $ 3.1 billion compared with $ 3.4 billion for 2010 .
results for 2011 include the impact of $ 324 million of residential mortgage foreclosure-related expenses primarily as a result of ongoing governmental matters , a $ 198 million noncash charge related to redemption of trust preferred securities and $ 42 million for integration costs .
results for 2010 included the $ 328 million after-tax gain on our sale of gis , $ 387 million for integration costs , and $ 71 million of residential mortgage foreclosure-related expenses .
for 2010 , net income attributable to common shareholders was also impacted by a noncash reduction of $ 250 million in connection with the redemption of tarp preferred stock .
pnc 2019s results for 2011 were driven by good performance in a challenging environment of low interest rates , slow economic growth and new regulations .
net interest income and net interest margin year ended december 31 dollars in millions 2011 2010 .

year ended december 31dollars in millions | 2011             | 2010
----------------------------------------- | ---------------- | ----------------
net interest income                       | $ 8700           | $ 9230
net interest margin                       | 3.92% ( 3.92 % ) | 4.14% ( 4.14 % )

changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields , interest-bearing liabilities and related rates paid , and noninterest-bearing sources of funding .
see the statistical information ( unaudited ) 2013 analysis of year-to-year changes in net interest income and average consolidated balance sheet and net interest analysis in item 8 and the discussion of purchase accounting accretion in the consolidated balance sheet review in item 7 of this report for additional information .
the decreases in net interest income and net interest margin for 2011 compared with 2010 were primarily attributable to a decrease in purchase accounting accretion on purchased impaired loans primarily due to lower excess cash recoveries .
a decline in average loan balances and the low interest rate environment , partially offset by lower funding costs , also contributed to the decrease .
the pnc financial services group , inc .
2013 form 10-k 35


jpmorgan chase & co .
/ 2007 annual report 31 the following section provides a comparative discussion of jpmorgan chase 2019s consolidated results of operations on a reported basis for the three-year period ended december 31 , 2007 .
factors that relate primarily to a single business segment are discussed in more detail within that business segment than they are in this consolidated sec- tion .
for a discussion of the critical accounting estimates used by the firm that affect the consolidated results of operations , see pages 96 201398 of this annual report .
revenue .

year ended december 31 ( in millions )          | 2007    | 2006         | 2005
----------------------------------------------- | ------- | ------------ | --------------
investment banking fees                         | $ 6635  | $ 5520       | $ 4088
principal transactions                          | 9015    | 10778        | 8072
lending & deposit-related fees                  | 3938    | 3468         | 3389
asset management administration and commissions | 14356   | 11855        | 9988
securities gains ( losses )                     | 164     | -543 ( 543 ) | -1336 ( 1336 )
mortgage fees and related income                | 2118    | 591          | 1054
credit card income                              | 6911    | 6913         | 6754
other income                                    | 1829    | 2175         | 2684
noninterest revenue                             | 44966   | 40757        | 34693
net interest income                             | 26406   | 21242        | 19555
total net revenue                               | $ 71372 | $ 61999      | $ 54248

2007 compared with 2006 total net revenue of $ 71.4 billion was up $ 9.4 billion , or 15% ( 15 % ) , from the prior year .
higher net interest income , very strong private equity gains , record asset management , administration and commissions revenue , higher mortgage fees and related income and record investment banking fees contributed to the revenue growth .
these increases were offset partially by lower trading revenue .
investment banking fees grew in 2007 to a level higher than the pre- vious record set in 2006 .
record advisory and equity underwriting fees drove the results , partially offset by lower debt underwriting fees .
for a further discussion of investment banking fees , which are primarily recorded in ib , see the ib segment results on pages 40 201342 of this annual report .
principal transactions revenue consists of trading revenue and private equity gains .
trading revenue declined significantly from the 2006 level , primarily due to markdowns in ib of $ 1.4 billion ( net of hedges ) on subprime positions , including subprime cdos , and $ 1.3 billion ( net of fees ) on leveraged lending funded loans and unfunded commitments .
also in ib , markdowns in securitized products on nonsubprime mortgages and weak credit trading performance more than offset record revenue in currencies and strong revenue in both rates and equities .
equities benefited from strong client activity and record trading results across all products .
ib 2019s credit portfolio results increased compared with the prior year , primarily driven by higher revenue from risk management activities .
the increase in private equity gains from 2006 reflected a significantly higher level of gains , the classification of certain private equity carried interest as compensation expense and a fair value adjustment in the first quarter of 2007 on nonpublic private equity investments resulting from the adoption of sfas 157 ( 201cfair value measurements 201d ) .
for a further discussion of principal transactions revenue , see the ib and corporate segment results on pages 40 201342 and 59 201360 , respectively , and note 6 on page 122 of this annual report .
lending & deposit-related fees rose from the 2006 level , driven pri- marily by higher deposit-related fees and the bank of new york transaction .
for a further discussion of lending & deposit-related fees , which are mostly recorded in rfs , tss and cb , see the rfs segment results on pages 43 201348 , the tss segment results on pages 54 201355 , and the cb segment results on pages 52 201353 of this annual report .
asset management , administration and commissions revenue reached a level higher than the previous record set in 2006 .
increased assets under management and higher performance and placement fees in am drove the record results .
the 18% ( 18 % ) growth in assets under management from year-end 2006 came from net asset inflows and market appreciation across all segments : institutional , retail , private bank and private client services .
tss also contributed to the rise in asset management , administration and commissions revenue , driven by increased product usage by new and existing clients and market appreciation on assets under custody .
finally , commissions revenue increased , due mainly to higher brokerage transaction volume ( primarily included within fixed income and equity markets revenue of ib ) , which more than offset the sale of the insurance business by rfs in the third quarter of 2006 and a charge in the first quarter of 2007 resulting from accelerated surrenders of customer annuities .
for additional information on these fees and commissions , see the segment discussions for ib on pages 40 201342 , rfs on pages 43 201348 , tss on pages 54 201355 , and am on pages 56 201358 , of this annual report .
the favorable variance resulting from securities gains in 2007 compared with securities losses in 2006 was primarily driven by improvements in the results of repositioning of the treasury invest- ment securities portfolio .
also contributing to the positive variance was a $ 234 million gain from the sale of mastercard shares .
for a fur- ther discussion of securities gains ( losses ) , which are mostly recorded in the firm 2019s treasury business , see the corporate segment discussion on pages 59 201360 of this annual report .
consol idated results of operat ions


entergy arkansas , inc .
and subsidiaries management 2019s financial discussion and analysis plan to spin off the utility 2019s transmission business see the 201cplan to spin off the utility 2019s transmission business 201d section of entergy corporation and subsidiaries management 2019s financial discussion and analysis for a discussion of this matter , including the planned retirement of debt and preferred securities .
results of operations net income 2011 compared to 2010 net income decreased $ 7.7 million primarily due to a higher effective income tax rate , lower other income , and higher other operation and maintenance expenses , substantially offset by higher net revenue , lower depreciation and amortization expenses , and lower interest expense .
2010 compared to 2009 net income increased $ 105.7 million primarily due to higher net revenue , a lower effective income tax rate , higher other income , and lower depreciation and amortization expenses , partially offset by higher other operation and maintenance expenses .
net revenue 2011 compared to 2010 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2011 to 2010 .
amount ( in millions ) .

                              | amount ( in millions )
----------------------------- | ----------------------
2010 net revenue              | $ 1216.7
retail electric price         | 31.0
ano decommissioning trust     | 26.4
transmission revenue          | 13.1
volume/weather                | -15.9 ( 15.9 )
net wholesale revenue         | -11.9 ( 11.9 )
capacity acquisition recovery | -10.3 ( 10.3 )
other                         | 3.2
2011 net revenue              | $ 1252.3

the retail electric price variance is primarily due to a base rate increase effective july 2010 .
see note 2 to the financial statements for more discussion of the rate case settlement .
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 2010 in interest and investment income and a corresponding increase in regulatory charges with no effect on net income.


while we have remediated the previously-identified material weakness in our internal control over financial reporting , we may identify other material weaknesses in the future .
in november 2017 , we restated our consolidated financial statements for the quarters ended april 1 , 2017 and july 1 , 2017 in order to correctly classify cash receipts from the payments on sold receivables ( which are cash receipts on the underlying trade receivables that have already been securitized ) to cash provided by investing activities ( from cash provided by operating activities ) within our condensed consolidated statements of cash flows .
in connection with these restatements , management identified a material weakness in our internal control over financial reporting related to the misapplication of accounting standards update 2016-15 .
specifically , we did not maintain effective controls over the adoption of new accounting standards , including communication with the appropriate individuals in coming to our conclusions on the application of new accounting standards .
as a result of this material weakness , our management concluded that we did not maintain effective internal control over financial reporting as of april 1 , 2017 and july 1 , 2017 .
while we have remediated the material weakness and our management has determined that our disclosure controls and procedures were effective as of december 30 , 2017 , there can be no assurance that our controls will remain adequate .
the effectiveness of our internal control over financial reporting is subject to various inherent limitations , including judgments used in decision-making , the nature and complexity of the transactions we undertake , assumptions about the likelihood of future events , the soundness of our systems , cost limitations , and other limitations .
if other material weaknesses or significant deficiencies in our internal control are discovered or occur in the future or we otherwise must restate our financial statements , it could materially and adversely affect our business and results of operations or financial condition , restrict our ability to access the capital markets , require us to expend significant resources to correct the weaknesses or deficiencies , subject us to fines , penalties , investigations or judgments , harm our reputation , or otherwise cause a decline in investor confidence .
item 1b .
unresolved staff comments .
item 2 .
properties .
our corporate co-headquarters are located in pittsburgh , pennsylvania and chicago , illinois .
our co-headquarters are leased and house certain executive offices , our u.s .
business units , and our administrative , finance , legal , and human resource functions .
we maintain additional owned and leased offices throughout the regions in which we operate .
we manufacture our products in our network of manufacturing and processing facilities located throughout the world .
as of december 30 , 2017 , we operated 83 manufacturing and processing facilities .
we own 80 and lease three of these facilities .
our manufacturing and processing facilities count by segment as of december 30 , 2017 was: .

              | owned | leased
------------- | ----- | ------
united states | 41    | 1
canada        | 2     | 2014
europe        | 11    | 2014
rest of world | 26    | 2

we maintain all of our manufacturing and processing facilities in good condition and believe they are suitable and are adequate for our present needs .
we also enter into co-manufacturing arrangements with third parties if we determine it is advantageous to outsource the production of any of our products .
item 3 .
legal proceedings .
we are routinely involved in legal proceedings , claims , and governmental inquiries , inspections or investigations ( 201clegal matters 201d ) arising in the ordinary course of our business .
while we cannot predict with certainty the results of legal matters in which we are currently involved or may in the future be involved , we do not expect that the ultimate costs to resolve any of the legal matters that are currently pending will have a material adverse effect on our financial condition or results of operations .
item 4 .
mine safety disclosures .
not applicable.


notes to consolidated financial statements 1 .
basis of presentation the accompanying consolidated financial statements and notes thereto have been prepared in accordance with u.s .
generally accepted accounting principles ( "u.s .
gaap" ) .
the consolidated financial statements include the accounts of aon plc and all of its controlled subsidiaries ( "aon" or the "company" ) .
all intercompany accounts and transactions have been eliminated .
the consolidated financial statements include , in the opinion of management , all adjustments necessary to present fairly the company's consolidated financial position , results of operations and cash flows for all periods presented .
reclassification certain amounts in prior years' consolidated financial statements and related notes have been reclassified to conform to the 2015 presentation .
in prior periods , long-term investments were included in investments in the consolidated statement of financial position .
these amounts are now included in other non-current assets in the consolidated statement of financial position , as shown in note 3 to these consolidated financial statements .
long-term investments were $ 135 million at december 31 , 2015 and $ 143 million at december 31 , 2014 .
in prior periods , prepaid pensions were included in other non-current assets in the consolidated statement of financial position .
these amounts are now separately disclosed in the consolidated statement of financial position .
prepaid pensions were $ 1033 million at december 31 , 2015 and $ 933 million at december 31 , 2014 .
upon vesting of certain share-based payment arrangements , employees may elect to use a portion of the shares to satisfy tax withholding requirements , in which case aon makes a payment to the taxing authority on the employee 2019s behalf and remits the remaining shares to the employee .
the company has historically presented amounts due to taxing authorities within cash flows from operating activities in the consolidated statements of cash flows .
the amounts are now included in 201cissuance of shares for employee benefit plans 201d within cash flows from financing activities .
the company believes this presentation provides greater clarity into the operating and financing activities of the company as the substance and accounting for these transactions is that of a share repurchase .
it also aligns the company 2019s presentation to be consistent with industry practice .
amounts reported in issuance of shares for employee benefit plans were $ 227 million , $ 170 million , and $ 120 million , respectively , for the years ended december 31 , 2015 , 2014 and 2013 .
these amounts , which were reclassified from accounts payable and accrued liabilities and other assets and liabilities , were $ 85 million and $ 85 million in 2014 , and $ 62 million and $ 58 million in 2013 , respectively .
changes to the presentation in the consolidated statements of cash flows for 2014 and 2013 were made related to certain line items within financing activities .
the following line items and respective amounts have been aggregated in a new line item titled 201cnoncontrolling interests and other financing activities 201d within financing activities. .

years ended december 31,                          | 2014       | 2013
------------------------------------------------- | ---------- | ----------
purchases of shares from noncontrolling interests | 3          | -8 ( 8 )
dividends paid to noncontrolling interests        | -24 ( 24 ) | -19 ( 19 )
proceeds from sale-leaseback                      | 25         | 2014

use of estimates the preparation of the accompanying consolidated financial statements in conformity with u.s .
gaap requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosures of contingent assets and liabilities at the date of the financial statements , and the reported amounts of reserves and expenses .
these estimates and assumptions are based on management's best estimates and judgments .
management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors , including the current economic environment .
management believes its estimates to be reasonable given the current facts available .
aon adjusts such estimates and assumptions when facts and circumstances dictate .
illiquid credit markets , volatile equity markets , and foreign currency exchange rate movements increase the uncertainty inherent in such estimates and assumptions .
as future events and their effects cannot be determined , among other factors , with precision , actual results could differ significantly from these estimates .
changes in estimates resulting from continuing changes in the economic environment would , if applicable , be reflected in the financial statements in future periods.