18 .
financial instruments : derivatives and hedging financial accounting standards board 2019s statement no .
133 , 201caccounting for derivative instruments and hedging activities , 201d ( 201csfas 133 201d ) which became effective january 1 , 2001 requires the company to recognize all derivatives on the balance sheet at fair value .
derivatives that are not hedges must be adjusted to fair value through income .
if a derivative is a hedge , depending on the nature of the hedge , changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset , liability , or firm commitment through earnings , or recognized in other comprehensive income until the hedged item is recognized in earnings .
the ineffective portion of a derivative 2019s change in fair value will be immediately recognized in earnings .
the company recorded a cumulative effect adjustment upon the adoption of sfas 133 .
this cumulative effect adjustment , of which the intrinsic value of the hedge was recorded in other comprehensive income ( $ 811 ) and the time value component was recorded in the state- ment of income ( $ 532 ) , was an unrealized loss of $ 1343 .
the transition amounts were determined based on the interpretive guidance issued by the fasb at that date .
the fasb continues to issue interpretive guidance that could require changes in the company 2019s application of the standard and adjustments to the transition amounts .
sfas 133 may increase or decrease reported net income and stockholders 2019 equity prospectively , depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items , but will have no effect on cash flows .
the following table summarizes the notional and fair value of the company 2019s derivative financial instruments at december 31 , 2001 .
the notional is an indication of the extent of the company 2019s involvement in these instruments at that time , but does not represent exposure to credit , interest rate or market risks .
notional strike fair value rate maturity value .

                     | notional value | strike rate        | maturity | fair value
-------------------- | -------------- | ------------------ | -------- | ----------------
interest rate collar | $ 70000        | 6.580% ( 6.580 % ) | 11/2004  | $ -4096 ( 4096 )
interest rate swap   | $ 65000        | 4.010              | 8/2005   | $ 891

on december 31 , 2001 , the derivative instruments were reported as an obligation at their fair value of $ 3205 .
offsetting adjustments are represented as deferred gains or losses in accumulated other comprehensive loss of $ 2911 .
currently , all derivative instruments are designated as hedging instruments .
over time , the unrealized gains and losses held in accumulated other comprehensive loss will be reclassified into earnings as interest expense in the same periods in which the hedged interest payments affect earnings .
the company estimates that approximately $ 1093 of the current balance held in accumulated other comprehensive loss will be reclassified into earnings within the next twelve months .
the company is not currently hedging exposure to variability in future cash flows for forecasted transactions other than anticipated future interest payments on existing debt .
19 .
environmental matters management of the company believes that the properties are in compliance in all material respects with applicable federal , state and local ordinances and regulations regarding environmental issues .
management is not aware of any environmental liability that it believes would have a materially adverse impact on the company 2019s financial position , results of operations or cash flows .
management is unaware of any instances in which it would incur significant environmental cost if any of the properties were sold .
20 .
segment information the company is a reit engaged in owning , managing , leasing and repositioning office properties in manhattan and has two reportable segments , office real estate and structured finance investments .
the company evaluates real estate performance and allocates resources based on net operating income .
the company 2019s real estate portfolio is located in one geo- graphical market of manhattan .
the primary sources of revenue are generated from tenant rents and escalations and reimburse- ment revenue .
real estate property operating expenses consist primarily of security , maintenance , utility costs , real estate taxes and ground rent expense ( at certain applicable properties ) .
at december 31 , 2001 and 2000 , of the total assets of $ 1371577 and $ 1161154 , $ 1182939 and $ 1109861 repre- sented real estate assets and $ 188638 and $ 51293 represented structured finance investments , respectively .
for the years ended december 31 , 2001 , 2000 and 1999 , of the total revenues of $ 257685 , $ 230323 and $ 206017 , $ 240316 , $ 217052 and $ 200751 represented total revenues from real estate assets and $ 17369 , $ 13271 and $ 5266 represented total revenues from structured finance investments .
for the years ended december 31 , 2001 , 2000 and 1999 , of the total net operating income of $ 63607 , $ 53152 and $ 48966 , $ 46238 , $ 39881 and $ 43700 represented net operat- ing income from real estate assets and $ 17369 , $ 13271 and $ 5266 represents net operating income from structured finance investments , respectively .
the company does not allocate mar- keting , general and administrative expenses or interest expense to the structured finance segment , since it bases performance on the individual segments prior to allocating marketing , general and administrative expenses and interest expense .
all other expenses relate solely to the real estate assets .
there were no transactions between the above two segments .
sl green realty corp .
notes to consolidated financial statements ( continued ) december 31 , 2001 ( dollars in thousands , except per share data )


management 2019s discussion and analysis of increased volumes in our performance and applied coatings , optical and specialty materials and glass reportable business segments was offset by volume declines in the commodity chemicals reportable business segment .
the volume decline in the commodity chemicals reportable business segment was due in part to lost sales resulting from the impact of hurricane rita , as discussed below .
cost of sales as a percentage of sales increased to 63.5% ( 63.5 % ) as compared to 63.1% ( 63.1 % ) in 2004 .
inflation , including higher coatings raw material costs and higher energy costs in our commodity chemicals and glass reportable business segments increased our cost of sales .
selling , general and administrative expense declined slightly as a percentage of sales to 17.4% ( 17.4 % ) despite increasing by $ 56 million in 2005 .
these costs increased primarily due to increased advertising in our optical products operating segment and higher expenses due to store expansions in our architectural coatings operating segment .
interest expense declined $ 9 million in 2005 , reflecting the year over year reduction in the outstanding debt balance of $ 80 million .
other charges increased $ 284 million in 2005 primarily due to pretax charges of $ 132 million related to the marvin legal settlement , net of $ 18 million in insurance recoveries , $ 61 million for the federal glass class action antitrust legal settlement , $ 34 million of direct costs related to the impact of hurricanes rita and katrina , $ 27 million for an asset impairment charge in our fine chemicals operating segment , $ 19 million for debt refinancing costs and an increase of $ 12 million for environmental remediation costs .
net income and earnings per share 2013 assuming dilution for 2005 were $ 596 million and $ 3.49 respectively , compared to $ 683 million and $ 3.95 , respectively , for 2004 .
net income in 2005 included aftertax charges of $ 117 million , or 68 cents a share , for legal settlements net of insurance ; $ 21 million , or 12 cents a share for direct costs related to the impact of hurricanes katrina and rita ; $ 17 million , or 10 cents a share related to an asset impairment charge related to our fine chemicals business ; and $ 12 million , or 7 cents a share , for debt refinancing costs .
the legal settlements net of insurance include aftertax charges of $ 80 million for the marvin legal settlement , net of insurance recoveries , and $ 37 million for the impact of the federal glass class action antitrust legal settlement .
net income for 2005 and 2004 included an aftertax charge of $ 13 million , or 8 cents a share , and $ 19 million , or 11 cents a share , respectively , to reflect the net increase in the current value of the company 2019s obligation relating to asbestos claims under the ppg settlement arrangement .
results of reportable business segments net sales segment income ( millions ) 2005 2004 2005 2004 industrial coatings $ 2921 $ 2818 $ 284 $ 338 performance and applied coatings 2668 2478 464 451 optical and specialty materials 867 805 158 186 .

( millions )                     | net sales 2005 | net sales 2004 | net sales 2005 | 2004
-------------------------------- | -------------- | -------------- | -------------- | -----
industrial coatings              | $ 2921         | $ 2818         | $ 284          | $ 338
performance and applied coatings | 2668           | 2478           | 464            | 451
optical and specialty materials  | 867            | 805            | 158            | 186
commodity chemicals              | 1531           | 1229           | 313            | 113
glass                            | 2214           | 2183           | 123            | 166

sales of industrial coatings increased $ 103 million or 4% ( 4 % ) in 2005 .
sales increased 2% ( 2 % ) due to higher selling prices in our industrial and packaging coatings businesses and 2% ( 2 % ) due to the positive effects of foreign currency translation .
volume was flat year over year as increased volume in automotive coatings was offset by lower volume in industrial and packaging coatings .
segment income decreased $ 54 million in 2005 .
the decrease in segment income was due to the adverse impact of inflation , including raw materials costs increases of about $ 170 million , which more than offset the benefits of higher selling prices , improved sales margin mix , formula cost reductions , lower manufacturing costs and higher other income .
performance and applied coatings sales increased $ 190 million or 8% ( 8 % ) in 2005 .
sales increased 4% ( 4 % ) due to higher selling prices in all three operating segments , 3% ( 3 % ) due to increased volumes as increases in our aerospace and architectural coatings businesses exceeded volume declines in automotive refinish , and 1% ( 1 % ) due to the positive effects of foreign currency translation .
performance and applied coatings segment income increased $ 13 million in 2005 .
segment income increased due to the impact of increased sales volumes described above and higher other income , which combined to offset the negative impacts of higher overhead costs to support the growth in these businesses , particularly in the architectural coatings business , and higher manufacturing costs .
the impact of higher selling prices fully offset the adverse impact of inflation , including raw materials cost increases of about $ 75 million .
optical and specialty materials sales increased $ 62 million or 8% ( 8 % ) .
sales increased 8% ( 8 % ) due to higher sales volumes in our optical products and silica businesses , which offset lower sales volumes in our fine chemicals business .
sales increased 1% ( 1 % ) due to an acquisition in our optical products business and decreased 1% ( 1 % ) due to lower pricing .
segment income decreased $ 28 million .
the primary factor decreasing segment income was the $ 27 million impairment charge related to our fine chemicals business .
the impact of higher sales volumes described above was offset by higher inflation , including increased energy costs ; lower selling prices ; increased overhead costs in our optical products business to support growth 24 2006 ppg annual report and form 10-k 4282_txt


revenues by segment the table below summarizes our revenues by reporting segment ( in millions ) : .

                            | 2016   | 2015   | 2014
--------------------------- | ------ | ------ | ------
ifs                         | $ 4566 | $ 3846 | $ 3679
gfs                         | 4250   | 2360   | 2198
corporate & other           | 425    | 390    | 536
total consolidated revenues | $ 9241 | $ 6596 | $ 6413

integrated financial solutions ( "ifs" ) the ifs segment is focused primarily on serving the north american regional and community bank and savings institutions market for transaction and account processing , payment solutions , channel solutions , lending and wealth management solutions , digital channels , risk and compliance solutions , and services , capitalizing on the continuing trend to outsource these solutions .
ifs also includes corporate liquidity and wealth management solutions acquired in the sungard acquisition .
clients in this segment include regional and community banks , credit unions and commercial lenders , as well as government institutions , merchants and other commercial organizations .
this market is primarily served through integrated solutions and characterized by multi-year processing contracts that generate highly recurring revenues .
the predictable nature of cash flows generated from this segment provides opportunities for further r investments in innovation , product integration , information and security , and compliance in a cost effective manner .
our solutions in this segment include : 2022 core processing and ancillary applications .
our core processing software applications are designed to run banking processes for our financial institution clients , including deposit and lending systems , customer management , and other central management systems , serving as the system of record for processed activity .
our diverse selection of market-focused core systems enables fis to compete effectively in a wide range of markets .
we also offer a number of services that are ancillary tof the primary applications listed above , including branch automation , back office support systems and compliance support .
2022 digital solutions , including internet , mobile and ebanking .
our comprehensive suite of retail delivery applications enables financial institutions to integrate and streamline customer-facing operations and back-office processes , thereby improving customer interaction across all channels ( e.g. , branch offices , internet , atm , mobile , call centers ) .
fis' focus on consumer access has driven significant market innovation in this area , with multi-channel and multi-host solutions and a strategy that provides tight integration of services and a seamless customer experience .
fis is a leader in mobile banking solutions and electronic banking enabling clients to manage banking and payments through the internet , mobile devices , accounting software and telephone .
our corporate electronic banking solutions provide commercial treasury capabilities including cash management services and multi-bank collection and disbursement services that address the specialized needs of corporate clients .
fis systems provide full accounting and reconciliation for such transactions , serving also as the system of record .
2022 fraud , risk management and compliance solutions.ff our decision solutions offer a spectrum of options that cover the account lifecycle from helping to identify qualified account applicants to managing existing customer accounts and fraud .
our applications include know-your-customer , new account decisioning and opening , account and transaction management , fraud management and collections .
our risk management services use our proprietary risk management models and data sources to assist in detecting fraud and assessing the risk of opening a new account .
our systems use a combination of advanced authentication procedures , predictive analytics , artificial intelligence modeling and proprietary and shared databases to assess and detect fraud risk for deposit transactions for financial institutions .
we also provide outsourced risk management and compliance solutions that are configt urable to a client's regulatory and risk management requirements.


contingent consideration of up to $ 13.8 million .
the contingent consideration arrangement requires additional cash payments to the former equity holders of lyric upon the achievement of certain technological and product development milestones payable during the period from june 2011 through june 2016 .
the company estimated the fair value of the contingent consideration arrangement utilizing the income approach .
changes in the fair value of the contingent consideration subsequent to the acquisition date primarily driven by assumptions pertaining to the achievement of the defined milestones will be recognized in operating income in the period of the estimated fair value change .
as of october 29 , 2011 , no contingent payments have been made and the fair value of the contingent consideration was approximately $ 14.0 million .
the company allocated the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition , resulting in the recognition of $ 12.2 million of ipr&d , $ 18.9 million of goodwill and $ 3.3 million of net deferred tax liabilities .
the goodwill recognized is attributable to future technologies that have yet to be determined as well as the assembled workforce of lyric .
future technologies do not meet the criteria for recognition separately from goodwill because they are a part of future development and growth of the business .
none of the goodwill is expected to be deductible for tax purposes .
in addition , the company will be obligated to pay royalties to the former equity holders of lyric on revenue recognized from the sale of lyric products and licenses through the earlier of 20 years or the accrual of a maximum of $ 25 million .
royalty payments to lyric employees require post-acquisition services to be rendered and , as such , the company will record these amounts as compensation expense in the related periods .
as of october 29 , 2011 , no royalty payments have been made .
the company recognized $ 0.2 million of acquisition-related costs that were expensed in the third quarter of fiscal 2011 .
these costs are included in operating expenses in the consolidated statement of income .
the company has not provided pro forma results of operations for integrant , audioasics and lyric herein as they were not material to the company on either an individual or an aggregate basis .
the company included the results of operations of each acquisition in its consolidated statement of income from the date of such acquisition .
7 .
deferred compensation plan investments investments in the analog devices , inc .
deferred compensation plan ( the deferred compensation plan ) are classified as trading .
the components of the investments as of october 29 , 2011 and october 30 , 2010 were as follows: .

                                             | 2011    | 2010
-------------------------------------------- | ------- | ------
money market funds                           | $ 17187 | $ 1840
mutual funds                                 | 9223    | 6850
total deferred compensation plan investments | $ 26410 | $ 8690

the fair values of these investments are based on published market quotes on october 29 , 2011 and october 30 , 2010 , respectively .
adjustments to the fair value of , and income pertaining to , deferred compensation plan investments are recorded in operating expenses .
gross realized and unrealized gains and losses from trading securities were not material in fiscal 2011 , 2010 or 2009 .
the company has recorded a corresponding liability for amounts owed to the deferred compensation plan participants ( see note 10 ) .
these investments are specifically designated as available to the company solely for the purpose of paying benefits under the deferred compensation plan .
however , in the event the company became insolvent , the investments would be available to all unsecured general creditors .
8 .
other investments other investments consist of equity securities and other long-term investments .
investments are stated at fair value , which is based on market quotes or on a cost-basis , dependent on the nature of the investment , as appropriate .
adjustments to the fair value of investments classified as available-for-sale are recorded as an increase or decrease analog devices , inc .
notes to consolidated financial statements 2014 ( continued )


note 8 2013 debt our long-term debt consisted of the following ( in millions ) : .

                                                                            | 2012         | 2011
--------------------------------------------------------------------------- | ------------ | ------------
notes with rates from 2.13% ( 2.13 % ) to 6.15% ( 6.15 % ) due 2016 to 2042 | $ 5642       | $ 5308
notes with rates from 7.00% ( 7.00 % ) to 7.75% ( 7.75 % ) due 2013 to 2036 | 1080         | 1239
other debt                                                                  | 478          | 19
total long-term debt                                                        | 7200         | 6966
less : unamortized discounts                                                | -892 ( 892 ) | -506 ( 506 )
total long-term debt net of unamortized discounts                           | 6308         | 6460
less : current maturities of long-term debt                                 | -150 ( 150 ) | 2014
total long-term debt net                                                    | $ 6158       | $ 6460

in december 2012 , we issued notes totaling $ 1.3 billion with a fixed interest rate of 4.07% ( 4.07 % ) maturing in december 2042 ( the new notes ) in exchange for outstanding notes totaling $ 1.2 billion with interest rates ranging from 5.50% ( 5.50 % ) to 8.50% ( 8.50 % ) maturing in 2023 to 2040 ( the old notes ) .
in connection with the exchange , we paid a premium of $ 393 million , of which $ 225 million was paid in cash and $ 168 million was in the form of new notes .
this premium , in addition to $ 194 million in remaining unamortized discounts related to the old notes , will be amortized as additional interest expense over the term of the new notes using the effective interest method .
we may , at our option , redeem some or all of the new notes at any time by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest .
interest on the new notes is payable on june 15 and december 15 of each year , beginning on june 15 , 2013 .
the new notes are unsecured senior obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated indebtedness .
on september 9 , 2011 , we issued $ 2.0 billion of long-term notes in a registered public offering consisting of $ 500 million maturing in 2016 with a fixed interest rate of 2.13% ( 2.13 % ) , $ 900 million maturing in 2021 with a fixed interest rate of 3.35% ( 3.35 % ) , and $ 600 million maturing in 2041 with a fixed interest rate of 4.85% ( 4.85 % ) .
we may , at our option , redeem some or all of the notes at any time by paying the principal amount of notes being redeemed plus a make-whole premium and accrued and unpaid interest .
interest on the notes is payable on march 15 and september 15 of each year , beginning on march 15 , 2012 .
in october 2011 , we used a portion of the proceeds to redeem all of our $ 500 million long-term notes maturing in 2013 .
in 2011 , we repurchased $ 84 million of our long-term notes through open-market purchases .
we paid premiums of $ 48 million in connection with the early extinguishments of debt , which were recognized in other non-operating income ( expense ) , net .
in august 2011 , we entered into a $ 1.5 billion revolving credit facility with a group of banks and terminated our existing $ 1.5 billion revolving credit facility that was to expire in june 2012 .
the credit facility expires august 2016 , and we may request and the banks may grant , at their discretion , an increase to the credit facility by an additional amount up to $ 500 million .
there were no borrowings outstanding under either facility through december 31 , 2012 .
borrowings under the credit facility would be unsecured and bear interest at rates based , at our option , on a eurodollar rate or a base rate , as defined in the credit facility .
each bank 2019s obligation to make loans under the credit facility is subject to , among other things , our compliance with various representations , warranties and covenants , including covenants limiting our ability and certain of our subsidiaries 2019 ability to encumber assets and a covenant not to exceed a maximum leverage ratio , as defined in the credit facility .
the leverage ratio covenant excludes the adjustments recognized in stockholders 2019 equity related to postretirement benefit plans .
as of december 31 , 2012 , we were in compliance with all covenants contained in the credit facility , as well as in our debt agreements .
we have agreements in place with banking institutions to provide for the issuance of commercial paper .
there were no commercial paper borrowings outstanding during 2012 or 2011 .
if we were to issue commercial paper , the borrowings would be supported by the credit facility .
during the next five years , we have scheduled long-term debt maturities of $ 150 million due in 2013 and $ 952 million due in 2016 .
interest payments were $ 378 million in 2012 , $ 326 million in 2011 , and $ 337 million in 2010.


repurchase of equity securities the following table provides information regarding our purchases of our equity securities during the period from october 1 , 2012 to december 31 , 2012 .
total number of shares ( or units ) purchased 1 average price paid per share ( or unit ) 2 total number of shares ( or units ) purchased as part of publicly announced plans or programs 3 maximum number ( or approximate dollar value ) of shares ( or units ) that may yet be purchased under the plans or programs 3 .

                | total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( or approximate dollar value ) of shares ( or units ) that mayyet be purchased under theplans or programs3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 13566                                         | $ 10.26                                   | 0                                                                                | $ 148858924
november 1 - 30 | 5345171                                       | $ 9.98                                    | 5343752                                                                                | $ 195551133
december 1 - 31 | 8797959                                       | $ 10.87                                   | 8790000                                                                                | $ 99989339
total           | 14156696                                      | $ 10.53                                   | 14133752                                                                                |

1 includes shares of our common stock , par value $ 0.10 per share , withheld under the terms of grants under employee stock-based compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares ( the 201cwithheld shares 201d ) .
we repurchased 13566 withheld shares in october 2012 , 1419 withheld shares in november 2012 and 7959 withheld shares in december 2012 , for a total of 22944 withheld shares during the three-month period .
2 the average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing the sum of the applicable period of the aggregate value of the tax withholding obligations and the aggregate amount we paid for shares acquired under our stock repurchase program , described in note 5 to the consolidated financial statements , by the sum of the number of withheld shares and the number of shares acquired in our stock repurchase program .
3 on february 24 , 2012 , we announced in a press release that our board had approved a share repurchase program to repurchase from time to time up to $ 300.0 million of our common stock ( the 201c2012 share repurchase program 201d ) , in addition to amounts available on existing authorizations .
on november 20 , 2012 , we announced in a press release that our board had authorized an increase in our 2012 share repurchase program to $ 400.0 million of our common stock .
on february 22 , 2013 , we announced that our board had approved a new share repurchase program to repurchase from time to time up to $ 300.0 million of our common stock .
the new authorization is in addition to any amounts remaining available for repurchase under the 2012 share repurchase program .
there is no expiration date associated with the share repurchase programs.


2022 net revenues in our connected fitness operating segment increased $ 34.2 million to $ 53.4 million in 2015 from $ 19.2 million in 2014 primarily due to revenues generated from our two connected fitness acquisitions in 2015 and growth in our existing connected fitness business .
operating income ( loss ) by segment is summarized below: .

( in thousands )       | year ended december 31 , 2015 | year ended december 31 , 2014 | year ended december 31 , $ change | year ended december 31 , % (  % ) change
---------------------- | ----------------------------- | ----------------------------- | --------------------------------- | ----------------------------------------
north america          | $ 460961                      | $ 372347                      | $ 88614                           | 23.8% ( 23.8 % )
emea                   | 3122                          | -11763 ( 11763 )              | 14885                             | 126.5
asia-pacific           | 36358                         | 21858                         | 14500                             | 66.3
latin america          | -30593 ( 30593 )              | -15423 ( 15423 )              | -15170 ( 15170 )                  | -98.4 ( 98.4 )
connected fitness      | -61301 ( 61301 )              | -13064 ( 13064 )              | -48237 ( 48237 )                  | -369.2 ( 369.2 )
total operating income | $ 408547                      | $ 353955                      | $ 54592                           | 15.4% ( 15.4 % )

the increase in total operating income was driven by the following : 2022 operating income in our north america operating segment increased $ 88.6 million to $ 461.0 million in 2015 from $ 372.4 million in 2014 primarily due to the items discussed above in the consolidated results of operations .
2022 operating income in our emea operating segment increased $ 14.9 million to $ 3.1 million in 2015 from a loss of $ 11.8 million in 2014 primarily due to sales growth discussed above in the consolidated results of operations .
2022 operating income in our asia-pacific operating segment increased $ 14.5 million to $ 36.4 million in 2015 from $ 21.9 million in 2014 primarily due to sales growth discussed above in the consolidated results of operations .
2022 operating loss in our latin america operating segment increased $ 15.2 million to $ 30.6 million in 2015 from $ 15.4 million in 2014 primarily due to increased investments to support growth in the region and the economic challenges in brazil during the period .
this increase in operating loss was offset by sales growth discussed above .
2022 operating loss in our connected fitness segment increased $ 48.2 million to $ 61.3 million in 2015 from $ 13.1 million in 2014 primarily due to investments to support growth in our connected fitness business , including the impact of our two connected fitness acquisitions in 2015 .
these acquisitions contributed $ 23.6 million to the operating loss for the connected fitness segment in 2015 .
seasonality historically , we have recognized a majority of our net revenues and a significant portion of our income from operations in the last two quarters of the year , driven primarily by increased sales volume of our products during the fall selling season , including our higher priced cold weather products , along with a larger proportion of higher margin direct to consumer sales .
seasonality could have an impact on the timing of accruals if the sales in the last two quarters of the year do not materialize .
the level of our working capital generally reflects the seasonality and growth in our business .
we generally expect inventory , accounts payable and certain accrued expenses to be higher in the second and third quarters in preparation for the fall selling season.


shareholder value award program svas are granted to officers and management and are payable in shares of our common stock .
the number of shares actually issued , if any , varies depending on our stock price at the end of the three-year vesting period compared to pre-established target stock prices .
we measure the fair value of the sva unit on the grant date using a monte carlo simulation model .
the model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award .
expected volatilities utilized in the model are based on implied volatilities from traded options on our stock , historical volatility of our stock price , and other factors .
similarly , the dividend yield is based on historical experience and our estimate of future dividend yields .
the risk-free interest rate is derived from the u.s .
treasury yield curve in effect at the time of grant .
the weighted-average fair values of the sva units granted during the years ended december 31 , 2018 , 2017 , and 2016 were $ 48.51 , $ 66.25 , and $ 48.68 , respectively , determined using the following assumptions: .

( percents )            | 2018             | 2017             | 2016
----------------------- | ---------------- | ---------------- | ----------------
expected dividend yield | 2.50% ( 2.50 % ) | 2.50% ( 2.50 % ) | 2.00% ( 2.00 % )
risk-free interest rate | 2.31             | 1.38             | 0.92
volatility              | 22.26            | 22.91            | 21.68

pursuant to this program , approximately 0.7 million shares , 1.1 million shares , and 1.0 million shares were issued during the years ended december 31 , 2018 , 2017 , and 2016 , respectively .
approximately 1.0 million shares are expected to be issued in 2019 .
as of december 31 , 2018 , the total remaining unrecognized compensation cost related to nonvested svas was $ 55.7 million , which will be amortized over the weighted-average remaining requisite service period of 20 months .
restricted stock units rsus are granted to certain employees and are payable in shares of our common stock .
rsu shares are accounted for at fair value based upon the closing stock price on the date of grant .
the corresponding expense is amortized over the vesting period , typically three years .
the fair values of rsu awards granted during the years ended december 31 , 2018 , 2017 , and 2016 were $ 70.95 , $ 72.47 , and $ 71.46 , respectively .
the number of shares ultimately issued for the rsu program remains constant with the exception of forfeitures .
pursuant to this program , 1.3 million , 1.4 million , and 1.3 million shares were granted and approximately 1.0 million , 0.9 million , and 0.6 million shares were issued during the years ended december 31 , 2018 , 2017 , and 2016 , respectively .
approximately 0.8 million shares are expected to be issued in 2019 .
as of december 31 , 2018 , the total remaining unrecognized compensation cost related to nonvested rsus was $ 112.2 million , which will be amortized over the weighted- average remaining requisite service period of 21 months .
note 12 : shareholders' equity during 2018 , 2017 , and 2016 , we repurchased $ 4.15 billion , $ 359.8 million and $ 540.1 million , respectively , of shares associated with our share repurchase programs .
a payment of $ 60.0 million was made in 2016 for shares repurchased in 2017 .
during 2018 , we repurchased $ 2.05 billion of shares , which completed the $ 5.00 billion share repurchase program announced in october 2013 and our board authorized an $ 8.00 billion share repurchase program .
there were $ 2.10 billion repurchased under the $ 8.00 billion program in 2018 .
as of december 31 , 2018 , there were $ 5.90 billion of shares remaining under the 2018 program .
we have 5.0 million authorized shares of preferred stock .
as of december 31 , 2018 and 2017 , no preferred stock was issued .
we have an employee benefit trust that held 50.0 million shares of our common stock at both december 31 , 2018 and 2017 , to provide a source of funds to assist us in meeting our obligations under various employee benefit plans .
the cost basis of the shares held in the trust was $ 3.01 billion at both december 31 , 2018 and 2017 , and is shown as a reduction of shareholders 2019 equity .
any dividend transactions between us and the trust are eliminated .
stock held by the trust is not considered outstanding in the computation of eps .
the assets of the trust were not used to fund any of our obligations under these employee benefit plans during the years ended december 31 , 2018 , 2017 , and


jpmorgan chase & co./2014 annual report 63 five-year stock performance the following table and graph compare the five-year cumulative total return for jpmorgan chase & co .
( 201cjpmorgan chase 201d or the 201cfirm 201d ) common stock with the cumulative return of the s&p 500 index , the kbw bank index and the s&p financial index .
the s&p 500 index is a commonly referenced u.s .
equity benchmark consisting of leading companies from different economic sectors .
the kbw bank index seeks to reflect the performance of banks and thrifts that are publicly traded in the u.s .
and is composed of 24 leading national money center and regional banks and thrifts .
the s&p financial index is an index of 85 financial companies , all of which are components of the s&p 500 .
the firm is a component of all three industry indices .
the following table and graph assume simultaneous investments of $ 100 on december 31 , 2009 , in jpmorgan chase common stock and in each of the above indices .
the comparison assumes that all dividends are reinvested .
december 31 , ( in dollars ) 2009 2010 2011 2012 2013 2014 .

december 31 ( in dollars ) | 2009     | 2010     | 2011    | 2012     | 2013     | 2014
-------------------------- | -------- | -------- | ------- | -------- | -------- | --------
jpmorgan chase             | $ 100.00 | $ 102.30 | $ 81.87 | $ 111.49 | $ 152.42 | $ 167.48
kbw bank index             | 100.00   | 123.36   | 94.75   | 125.91   | 173.45   | 189.69
s&p financial index        | 100.00   | 112.13   | 93.00   | 119.73   | 162.34   | 186.98
s&p 500 index              | 100.00   | 115.06   | 117.48  | 136.27   | 180.39   | 205.07


business subsequent to the acquisition .
the liabilities for these payments are classified as level 3 liabilities because the related fair value measurement , which is determined using an income approach , includes significant inputs not observable in the market .
financial assets and liabilities not measured at fair value our debt is reflected on the consolidated balance sheets at cost .
based on market conditions as of december 31 , 2018 and 2017 , the fair value of our credit agreement borrowings reasonably approximated the carrying values of $ 1.7 billion and $ 2.0 billion , respectively .
in addition , based on market conditions , the fair values of the outstanding borrowings under the receivables facility reasonably approximated the carrying values of $ 110 million and $ 100 million at december 31 , 2018 and december 31 , 2017 , respectively .
as of december 31 , 2018 and december 31 , 2017 , the fair values of the u.s .
notes ( 2023 ) were approximately $ 574 million and $ 615 million , respectively , compared to a carrying value of $ 600 million at each date .
as of december 31 , 2018 and december 31 , 2017 , the fair values of the euro notes ( 2024 ) were approximately $ 586 million and $ 658 million compared to carrying values of $ 573 million and $ 600 million , respectively .
as of december 31 , 2018 , the fair value of the euro notes ( 2026/28 ) approximated the carrying value of $ 1.1 billion .
the fair value measurements of the borrowings under our credit agreement and receivables facility are classified as level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market , including interest rates on recent financing transactions with similar terms and maturities .
we estimated the fair value by calculating the upfront cash payment a market participant would require at december 31 , 2018 to assume these obligations .
the fair value of our u.s .
notes ( 2023 ) is classified as level 1 within the fair value hierarchy since it is determined based upon observable market inputs including quoted market prices in an active market .
the fair values of our euro notes ( 2024 ) and euro notes ( 2026/28 ) are determined based upon observable market inputs including quoted market prices in markets that are not active , and therefore are classified as level 2 within the fair value hierarchy .
note 13 .
commitments and contingencies operating leases we are obligated under noncancelable operating leases for corporate office space , warehouse and distribution facilities , trucks and certain equipment .
the future minimum lease commitments under these leases at december 31 , 2018 are as follows ( in thousands ) : years ending december 31: .

2019                          | $ 294269
----------------------------- | ---------
2020                          | 256172
2021                          | 210632
2022                          | 158763
2023                          | 131518
thereafter                    | 777165
future minimum lease payments | $ 1828519

rental expense for operating leases was approximately $ 300 million , $ 247 million , and $ 212 million during the years ended december 31 , 2018 , 2017 and 2016 , respectively .
we guarantee the residual values of the majority of our truck and equipment operating leases .
the residual values decline over the lease terms to a defined percentage of original cost .
in the event the lessor does not realize the residual value when a piece of equipment is sold , we would be responsible for a portion of the shortfall .
similarly , if the lessor realizes more than the residual value when a piece of equipment is sold , we would be paid the amount realized over the residual value .
had we terminated all of our operating leases subject to these guarantees at december 31 , 2018 , our portion of the guaranteed residual value would have totaled approximately $ 76 million .
we have not recorded a liability for the guaranteed residual value of equipment under operating leases as the recovery on disposition of the equipment under the leases is expected to approximate the guaranteed residual value .
litigation and related contingencies we have certain contingencies resulting from litigation , claims and other commitments and are subject to a variety of environmental and pollution control laws and regulations incident to the ordinary course of business .
we currently expect that the resolution of such contingencies will not materially affect our financial position , results of operations or cash flows.


consolidated income statement review our consolidated income statement is presented in item 8 of this report .
net income for 2008 was $ 882 million and for 2007 was $ 1.467 billion .
total revenue for 2008 increased 7% ( 7 % ) compared with 2007 .
we created positive operating leverage in the year-to-date comparison as total noninterest expense increased 3% ( 3 % ) in the comparison .
net interest income and net interest margin year ended december 31 dollars in millions 2008 2007 .

year ended december 31 dollars in millions | 2008             | 2007
------------------------------------------ | ---------------- | ----------------
net interest income                        | $ 3823           | $ 2915
net interest margin                        | 3.37% ( 3.37 % ) | 3.00% ( 3.00 % )

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 statistical information 2013 analysis of year-to-year changes in net interest ( unaudited ) income and average consolidated balance sheet and net interest analysis in item 8 of this report for additional information .
the 31% ( 31 % ) increase in net interest income for 2008 compared with 2007 was favorably impacted by the $ 16.5 billion , or 17% ( 17 % ) , increase in average interest-earning assets and a decrease in funding costs .
the 2008 net interest margin was positively affected by declining rates paid on deposits and borrowings compared with the prior year .
the reasons driving the higher interest-earning assets in these comparisons are further discussed in the balance sheet highlights portion of the executive summary section of this item 7 .
the net interest margin was 3.37% ( 3.37 % ) for 2008 and 3.00% ( 3.00 % ) for 2007 .
the following factors impacted the comparison : 2022 a decrease in the rate paid on interest-bearing liabilities of 140 basis points .
the rate paid on interest-bearing deposits , the single largest component , decreased 123 basis points .
2022 these factors were partially offset by a 77 basis point decrease in the yield on interest-earning assets .
the yield on loans , the single largest component , decreased 109 basis points .
2022 in addition , the impact of noninterest-bearing sources of funding decreased 26 basis points due to lower interest rates and a lower proportion of noninterest- bearing sources of funding to interest-earning assets .
for comparing to the broader market , during 2008 the average federal funds rate was 1.94% ( 1.94 % ) compared with 5.03% ( 5.03 % ) for 2007 .
we expect our full-year 2009 net interest income to benefit from the impact of interest accretion of discounts resulting from purchase accounting marks and deposit pricing alignment related to our national city acquisition .
we also currently expect our 2009 net interest margin to improve on a year-over-year basis .
noninterest income summary noninterest income was $ 3.367 billion for 2008 and $ 3.790 billion for 2007 .
noninterest income for 2008 included the following : 2022 gains of $ 246 million related to the mark-to-market adjustment on our blackrock ltip shares obligation , 2022 losses related to our commercial mortgage loans held for sale of $ 197 million , net of hedges , 2022 impairment and other losses related to alternative investments of $ 179 million , 2022 income from hilliard lyons totaling $ 164 million , including the first quarter gain of $ 114 million from the sale of this business , 2022 net securities losses of $ 206 million , 2022 a first quarter gain of $ 95 million related to the redemption of a portion of our visa class b common shares related to visa 2019s march 2008 initial public offering , 2022 a third quarter $ 61 million reversal of a legal contingency reserve established in connection with an acquisition due to a settlement , 2022 trading losses of $ 55 million , 2022 a $ 35 million impairment charge on commercial mortgage servicing rights , and 2022 equity management losses of $ 24 million .
noninterest income for 2007 included the following : 2022 the impact of $ 82 million gain recognized in connection with our transfer of blackrock shares to satisfy a portion of pnc 2019s ltip obligation and a $ 209 million net loss on our ltip shares obligation , 2022 income from hilliard lyons totaling $ 227 million , 2022 trading income of $ 104 million , 2022 equity management gains of $ 102 million , and 2022 gains related to our commercial mortgage loans held for sale of $ 3 million , net of hedges .
apart from the impact of these items , noninterest income increased $ 16 million in 2008 compared with 2007 .
additional analysis fund servicing fees increased $ 69 million in 2008 , to $ 904 million , compared with $ 835 million in 2007 .
the impact of the december 2007 acquisition of albridge solutions inc .
( 201calbridge solutions 201d ) and growth in global investment servicing 2019s offshore operations were the primary drivers of this increase .
global investment servicing provided fund accounting/ administration services for $ 839 billion of net fund investment assets and provided custody services for $ 379 billion of fund


note 4 : property , plant and equipment the following table summarizes the major classes of property , plant and equipment by category as of december 31 : 2015 2014 range of remaining useful weighted average useful life utility plant : land and other non-depreciable assets .
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$ 141 $ 137 sources of supply .
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705 681 12 to 127 years 51 years treatment and pumping facilities .
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3070 2969 3 to 101 years 39 years transmission and distribution facilities .
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8516 7963 9 to 156 years 83 years services , meters and fire hydrants .
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3250 3062 8 to 93 years 35 years general structures and equipment .
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1227 1096 1 to 154 years 39 years waste treatment , pumping and disposal .
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313 281 2 to 115 years 46 years waste collection .
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473 399 5 to 109 years 56 years construction work in progress .
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404 303 total utility plant .
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18099 16891 nonutility property .
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405 378 3 to 50 years 6 years total property , plant and equipment .
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$ 18504 $ 17269 property , plant and equipment depreciation expense amounted to $ 405 , $ 392 , and $ 374 for the years ended december 31 , 2015 , 2014 and 2013 , respectively and was included in depreciation and amortization expense in the accompanying consolidated statements of operations .
the provision for depreciation expressed as a percentage of the aggregate average depreciable asset balances was 3.13% ( 3.13 % ) for the year ended december 31 , 2015 and 3.20% ( 3.20 % ) for years december 31 , 2014 and 2013 .
note 5 : allowance for uncollectible accounts the following table summarizes the changes in the company 2019s allowances for uncollectible accounts for the years ended december 31: .

                                  | 2015         | 2014         | 2013
--------------------------------- | ------------ | ------------ | ------------
balance as of january 1           | $ -35 ( 35 ) | $ -34 ( 34 ) | $ -27 ( 27 )
amounts charged to expense        | -32 ( 32 )   | -37 ( 37 )   | -27 ( 27 )
amounts written off               | 38           | 43           | 24
recoveries of amounts written off | -10 ( 10 )   | -7 ( 7 )     | -4 ( 4 )
balance as of december 31         | $ -39 ( 39 ) | $ -35 ( 35 ) | $ -34 ( 34 )


nonoperating income ( expense ) .
blackrock also uses operating margin , as adjusted , to monitor corporate performance and efficiency and as a benchmark to compare its performance with other companies .
management uses both gaap and non-gaap financial measures in evaluating blackrock 2019s financial performance .
the non-gaap measure by itself may pose limitations because it does not include all of blackrock 2019s revenues and expenses .
operating income used for measuring operating margin , as adjusted , is equal to operating income , as adjusted , excluding the impact of closed-end fund launch costs and related commissions .
management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenues associated with the expenditure of these costs will not fully impact blackrock 2019s results until future periods .
revenue used for operating margin , as adjusted , excludes distribution and servicing costs paid to related parties and other third parties .
management believes the exclusion of such costs is useful because it creates consistency in the treatment for certain contracts for similar services , which due to the terms of the contracts , are accounted for under gaap on a net basis within investment advisory , administration fees and securities lending revenue .
amortization of deferred sales commissions is excluded from revenue used for operating margin measurement , as adjusted , because such costs , over time , substantially offset distribution fee revenue the company earns .
for each of these items , blackrock excludes from revenue used for operating margin , as adjusted , the costs related to each of these items as a proxy for such offsetting revenues .
( b ) nonoperating income ( expense ) , less net income ( loss ) attributable to noncontrolling interests , as adjusted , is presented below .
the compensation expense offset is recorded in operating income .
this compensation expense has been included in nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , to offset returns on investments set aside for these plans , which are reported in nonoperating income ( expense ) , gaap basis .
management believes nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides comparability of information among reporting periods and is an effective measure for reviewing blackrock 2019s nonoperating contribution to results .
as compensation expense associated with ( appreciation ) depreciation on investments related to certain deferred compensation plans , which is included in operating income , substantially offsets the gain ( loss ) on the investments set aside for these plans , management believes nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides a useful measure , for both management and investors , of blackrock 2019s nonoperating results that impact book value .
during 2013 , the noncash , nonoperating pre-tax gain of $ 80 million related to the contributed pennymac investment has been excluded from nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted due to its nonrecurring nature and because the more than offsetting associated charitable contribution expense of $ 124 million is reported in operating income .
( in millions ) 2013 2012 2011 nonoperating income ( expense ) , gaap basis $ 116 $ ( 54 ) $ ( 114 ) less : net income ( loss ) attributable to nci 19 ( 18 ) 2 .

( in millions )                                                                              | 2013       | 2012         | 2011
-------------------------------------------------------------------------------------------- | ---------- | ------------ | --------------
nonoperating income ( expense ) gaap basis                                                   | $ 116      | $ -54 ( 54 ) | $ -114 ( 114 )
less : net income ( loss ) attributable to nci                                               | 19         | -18 ( 18 )   | 2
nonoperating income ( expense )                                                              | 97         | -36 ( 36 )   | -116 ( 116 )
gain related to charitable contribution                                                      | -80 ( 80 ) | 2014         | 2014
compensation expense related to ( appreciation ) depreciation on deferred compensation plans | -10 ( 10 ) | -6 ( 6 )     | 3
nonoperating income ( expense ) less net income ( loss ) attributable to nci as adjusted     | $ 7        | $ -42 ( 42 ) | $ -113 ( 113 )

gain related to charitable contribution ( 80 ) 2014 2014 compensation expense related to ( appreciation ) depreciation on deferred compensation plans ( 10 ) ( 6 ) 3 nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted $ 7 $ ( 42 ) $ ( 113 ) ( c ) net income attributable to blackrock , as adjusted : management believes net income attributable to blackrock , inc. , as adjusted , and diluted earnings per common share , as adjusted , are useful measures of blackrock 2019s profitability and financial performance .
net income attributable to blackrock , inc. , as adjusted , equals net income attributable to blackrock , inc. , gaap basis , adjusted for significant nonrecurring items , charges that ultimately will not impact blackrock 2019s book value or certain tax items that do not impact cash flow .
see note ( a ) operating income , as adjusted , and operating margin , as adjusted , for information on the pnc ltip funding obligation , merrill lynch compensation contribution , charitable contribution , u.k .
lease exit costs , contribution to stifs and restructuring charges .
the 2013 results included a tax benefit of approximately $ 48 million recognized in connection with the charitable contribution .
the tax benefit has been excluded from net income attributable to blackrock , inc. , as adjusted due to the nonrecurring nature of the charitable contribution .
during 2013 , income tax changes included adjustments related to the revaluation of certain deferred income tax liabilities , including the effect of legislation enacted in the united kingdom and domestic state and local income tax changes .
during 2012 , income tax changes included adjustments related to the revaluation of certain deferred income tax liabilities , including the effect of legislation enacted in the united kingdom and the state and local income tax effect resulting from changes in the company 2019s organizational structure .
during 2011 , income tax changes included adjustments related to the revaluation of certain deferred income tax liabilities due to a state tax election and enacted u.k. , japan , u.s .
state and local tax legislation .
the resulting decrease in income taxes has been excluded from net income attributable to blackrock , inc. , as adjusted , as these items will not have a cash flow impact and to ensure comparability among periods presented.


table of contents celanese purchases of its equity securities information regarding repurchases of our common stock during the three months ended december 31 , 2017 is as follows : period number of shares purchased ( 1 ) average price paid per share total number of shares purchased as part of publicly announced program approximate dollar value of shares remaining that may be purchased under the program ( 2 ) .

period               | totalnumberof sharespurchased ( 1 ) | averageprice paidper share | total numberof sharespurchased aspart of publiclyannounced program | approximatedollarvalue of sharesremaining thatmay bepurchased underthe program ( 2 )
-------------------- | ----------------------------------- | -------------------------- | ------------------------------------------------------------------ | ------------------------------------------------------------------------------------
october 1 - 31 2017  | 10676                               | $ 104.10                   | 2014                                                               | $ 1531000000
november 1 - 30 2017 | 924                                 | $ 104.02                   | 2014                                                               | $ 1531000000
december 1 - 31 2017 | 38605                               | $ 106.36                   | 2014                                                               | $ 1531000000
total                | 50205                               |                            | 2014                                                               |

___________________________ ( 1 ) represents shares withheld from employees to cover their statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock units .
( 2 ) our board of directors has authorized the aggregate repurchase of $ 3.9 billion of our common stock since february 2008 , including an increase of $ 1.5 billion on july 17 , 2017 .
see note 17 - stockholders' equity in the accompanying consolidated financial statements for further information.


in asset positions , which totaled $ 41.2 million at june 30 , 2009 .
to manage this risk , we have established strict counterparty credit guidelines that are continually monitored and reported to management .
accordingly , management believes risk of loss under these hedging contracts is remote .
certain of our derivative fi nancial instruments contain credit-risk-related contingent features .
as of june 30 , 2009 , we were in compliance with such features and there were no derivative financial instruments with credit-risk-related contingent features that were in a net liability position .
the est{e lauder companies inc .
111 market risk we use a value-at-risk model to assess the market risk of our derivative fi nancial instruments .
value-at-risk rep resents the potential losses for an instrument or portfolio from adverse changes in market factors for a specifi ed time period and confi dence level .
we estimate value- at-risk across all of our derivative fi nancial instruments using a model with historical volatilities and correlations calculated over the past 250-day period .
the high , low and average measured value-at-risk for the twelve months ended june 30 , 2009 and 2008 related to our foreign exchange and interest rate contracts are as follows: .

( in millions )            | june 30 2009 high | june 30 2009 low | june 30 2009 average | june 30 2009 high | june 30 2009 low | average
-------------------------- | ----------------- | ---------------- | -------------------- | ----------------- | ---------------- | -------
foreign exchange contracts | $ 28.4            | $ 14.2           | $ 21.6               | $ 18.8            | $ 5.3            | $ 11.3
interest rate contracts    | 34.3              | 23.0             | 29.5                 | 28.8              | 12.6             | 20.0

the change in the value-at-risk measures from the prior year related to our foreign exchange contracts refl ected an increase in foreign exchange volatilities and a different portfolio mix .
the change in the value-at-risk measures from the prior year related to our interest rate contracts refl ected higher interest rate volatilities .
the model esti- mates were made assuming normal market conditions and a 95 percent confi dence level .
we used a statistical simulation model that valued our derivative fi nancial instruments against one thousand randomly generated market price paths .
our calculated value-at-risk exposure represents an esti mate of reasonably possible net losses that would be recognized on our portfolio of derivative fi nancial instru- ments assuming hypothetical movements in future market rates and is not necessarily indicative of actual results , which may or may not occur .
it does not represent the maximum possible loss or any expected loss that may occur , since actual future gains and losses will differ from those estimated , based upon actual fl uctuations in market rates , operating exposures , and the timing thereof , and changes in our portfolio of derivative fi nancial instruments during the year .
we believe , however , that any such loss incurred would be offset by the effects of market rate movements on the respective underlying transactions for which the deriva- tive fi nancial instrument was intended .
off-balance sheet arrangements we do not maintain any off-balance sheet arrangements , transactions , obligations or other relationships with unconsolidated entities that would be expected to have a material current or future effect upon our fi nancial condi- tion or results of operations .
recently adopted accounting standards in may 2009 , the financial accounting standards board ( 201cfasb 201d ) issued statement of financial accounting standards ( 201csfas 201d ) no .
165 , 201csubsequent events 201d ( 201csfas no .
165 201d ) .
sfas no .
165 requires the disclosure of the date through which an entity has evaluated subsequent events for potential recognition or disclosure in the fi nan- cial statements and whether that date represents the date the fi nancial statements were issued or were available to be issued .
this standard also provides clarifi cation about circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its fi nancial statements and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date .
this standard is effective for interim and annual periods beginning with our fi scal year ended june 30 , 2009 .
the adoption of this standard did not have a material impact on our consoli- dated fi nancial statements .
in march 2008 , the fasb issued sfas no .
161 , 201cdisclosures about derivative instruments and hedging activities 2014 an amendment of fasb statement no .
133 201d ( 201csfas no .
161 201d ) .
sfas no .
161 requires companies to provide qualitative disclosures about their objectives and strategies for using derivative instruments , quantitative disclosures of the fair values of , and gains and losses on , these derivative instruments in a tabular format , as well as more information about liquidity by requiring disclosure of a derivative contract 2019s credit-risk-related contingent


simplify the presentation of deferred income taxes and reduce complexity without decreasing the usefulness of information provided to users of financial statements .
the adoption of this pronouncement did not have a significant impact on the company 2019s financial position , results of operations and cash flows .
3 .
acquisitions endomondo on january 5 , 2015 , the company acquired 100% ( 100 % ) of the outstanding equity of endomondo , a denmark- based digital connected fitness company , to expand the under armour connected fitness community .
the purchase price was $ 85.0 million , adjusted for working capital .
the company recognized $ 0.6 million and $ 0.8 million in acquisition related costs that were expensed during the three months ended march 31 , 2015 and december 31 , 2014 , respectively .
these costs are included in the consolidated statements of income in the line item entitled 201cselling , general and administrative expenses . 201d pro forma results are not presented , as the acquisition was not considered material to the consolidated company .
myfitnesspal on march 17 , 2015 , the company acquired 100% ( 100 % ) of the outstanding equity of mfp , a digital nutrition and connected fitness company , to expand the under armour connected fitness community .
the final adjusted transaction value totaled $ 474.0 million .
the total consideration of $ 463.9 million was adjusted to reflect the accelerated vesting of certain share awards of mfp , which are not conditioned upon continued employment , and transaction costs borne by the selling shareholders .
the acquisition was funded with $ 400.0 million of increased term loan borrowings and a draw on the revolving credit facility , with the remaining amount funded by cash on the company recognized $ 5.7 million of acquisition related costs that were expensed during the three months ended march 31 , 2015 .
these costs are included in the consolidated statement of income in the line item entitled 201cselling , general and administrative expenses . 201d the following represents the pro forma consolidated income statement as if mfp had been included in the consolidated results of the company for the year ended december 31 , 2015 and december 31 , 2014: .

( in thousands ) | year ended december 31 , 2015 | year ended december 31 , 2014
---------------- | ----------------------------- | -----------------------------
net revenues     | $ 3967008                     | $ 3098341
net income       | 231277                        | 189659

these amounts have been calculated after applying the company 2019s accounting policies and adjusting the results of mfp to reflect the acquisition as if it closed on january 1 , 2014 .
pro forma net income for the year ended december 31 , 2014 includes $ 5.7 million in transaction expenses which were included in the consolidated statement of income for the year ended december 31 , 2015 , but excluded from the calculation of pro forma net income for december 31 , 2015.


borrowings reflect net proceeds received from the issuance of senior notes in june 2015 .
see liquidity and capital resources below for additional information .
in november 2015 , we repaid our $ 1 billion 0.90% ( 0.90 % ) senior notes upon maturity .
in october 2015 , we announced an adjustment to our quarterly dividend .
see capital requirements below for additional information .
additions to property , plant and equipment are our most significant use of cash and cash equivalents .
the following table shows capital expenditures related to continuing operations by segment and reconciles to additions to property , plant and equipment as presented in the consolidated statements of cash flows for 2015 , 2014 and 2013: .

( in millions )                           | year ended december 31 , 2015 | year ended december 31 , 2014 | year ended december 31 , 2013
----------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
north america e&p                         | $ 2553                        | $ 4698                        | $ 3649
international e&p                         | 368                           | 534                           | 456
oil sands mining ( a )                    | -10 ( 10 )                    | 212                           | 286
corporate                                 | 25                            | 51                            | 58
total capital expenditures                | 2936                          | 5495                          | 4449
change in capital expenditure accrual     | 540                           | -335 ( 335 )                  | -6 ( 6 )
additions to property plant and equipment | $ 3476                        | $ 5160                        | $ 4443

( a ) reflects reimbursements earned from the governments of canada and alberta related to funds previously expended for quest ccs capital equipment .
quest ccs was successfully completed and commissioned in the fourth quarter of 2015 .
during 2014 , we acquired 29 million shares at a cost of $ 1 billion and in 2013 acquired 14 million shares at a cost of $ 500 million .
there were no share repurchases in 2015 .
see item 8 .
financial statements and supplementary data 2013 note 23 to the consolidated financial statements for discussion of purchases of common stock .
liquidity and capital resources on june 10 , 2015 , we issued $ 2 billion aggregate principal amount of unsecured senior notes which consist of the following series : 2022 $ 600 million of 2.70% ( 2.70 % ) senior notes due june 1 , 2020 2022 $ 900 million of 3.85% ( 3.85 % ) senior notes due june 1 , 2025 2022 $ 500 million of 5.20% ( 5.20 % ) senior notes due june 1 , 2045 interest on each series of senior notes is payable semi-annually beginning december 1 , 2015 .
we used the aggregate net proceeds to repay our $ 1 billion 0.90% ( 0.90 % ) senior notes on november 2 , 2015 , and the remainder for general corporate purposes .
in may 2015 , we amended our $ 2.5 billion credit facility to increase the facility size by $ 500 million to a total of $ 3.0 billion and extend the maturity date by an additional year such that the credit facility now matures in may 2020 .
the amendment additionally provides us the ability to request two one-year extensions to the maturity date and an option to increase the commitment amount by up to an additional $ 500 million , subject to the consent of any increasing lenders .
the sub-facilities for swing-line loans and letters of credit remain unchanged allowing up to an aggregate amount of $ 100 million and $ 500 million , respectively .
fees on the unused commitment of each lender , as well as the borrowing options under the credit facility , remain unchanged .
our main sources of liquidity are cash and cash equivalents , internally generated cash flow from operations , capital market transactions , our committed revolving credit facility and sales of non-core assets .
our working capital requirements are supported by these sources and we may issue either commercial paper backed by our $ 3.0 billion revolving credit facility or draw on our $ 3.0 billion revolving credit facility to meet short-term cash requirements or issue debt or equity securities through the shelf registration statement discussed below as part of our longer-term liquidity and capital management .
because of the alternatives available to us as discussed above , we believe that our short-term and long-term liquidity is adequate to fund not only our current operations , but also our near-term and long-term funding requirements including our capital spending programs , dividend payments , defined benefit plan contributions , repayment of debt maturities and other amounts that may ultimately be paid in connection with contingencies .
general economic conditions , commodity prices , and financial , business and other factors could affect our operations and our ability to access the capital markets .
a downgrade in our credit ratings could negatively impact our cost of capital and our ability to access the capital markets , increase the interest rate and fees we pay on our unsecured revolving credit facility , restrict our access to the commercial paper market , or require us to post letters of credit or other forms of collateral for certain


in our primary disbursement accounts which were reclassified as accounts payable and other accrued liabilities on our consolidated balance sheet .
concentration of credit risk financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents , trade accounts receivable and derivative instruments .
we place our cash and cash equivalents with high quality financial institutions .
such balances may be in excess of fdic insured limits .
in order to manage the related credit exposure , we continually monitor the credit worthiness of the financial institutions where we have deposits .
concentrations of credit risk with respect to trade accounts receivable are limited due to the wide variety of customers and markets in which we provide services , as well as the dispersion of our operations across many geographic areas .
we provide services to commercial , industrial , municipal and residential customers in the united states and puerto rico .
we perform ongoing credit evaluations of our customers , but do not require collateral to support customer receivables .
we establish an allowance for doubtful accounts based on various factors including the credit risk of specific customers , age of receivables outstanding , historical trends , economic conditions and other information .
no customer exceeded 5% ( 5 % ) of our outstanding accounts receivable balance at december 31 , 2009 or 2008 .
accounts receivable , net of allowance for doubtful accounts accounts receivable represent receivables from customers for collection , transfer , recycling , disposal and other services .
our receivables are recorded when billed or when the related revenue is earned , if earlier , and represent claims against third parties that will be settled in cash .
the carrying value of our receivables , net of the allowance for doubtful accounts , represents their estimated net realizable value .
provisions for doubtful accounts are evaluated on a monthly basis and are recorded based on our historical collection experience , the age of the receivables , specific customer information and economic conditions .
we also review outstanding balances on an account-specific basis .
in general , reserves are provided for accounts receivable in excess of ninety days old .
past due receivable balances are written-off when our collection efforts have been unsuccess- ful in collecting amounts due .
the following table reflects the activity in our allowance for doubtful accounts for the years ended december 31 , 2009 , 2008 and 2007: .

                             | 2009           | 2008           | 2007
---------------------------- | -------------- | -------------- | ------------
balance at beginning of year | $ 65.7         | $ 14.7         | $ 18.8
additions charged to expense | 27.3           | 36.5           | 3.9
accounts written-off         | -37.8 ( 37.8 ) | -12.7 ( 12.7 ) | -7.8 ( 7.8 )
acquisitions                 | -              | 27.2           | -0.2 ( 0.2 )
balance at end of year       | $ 55.2         | $ 65.7         | $ 14.7

subsequent to our acquisition of allied , we recorded a provision for doubtful accounts of $ 14.2 million to adjust the allowance acquired from allied to conform to republic 2019s accounting policies .
we also recorded $ 5.4 million to provide for specific bankruptcy exposures in 2008 .
in 2007 , we recorded a $ 4.3 million reduction in our allowance for doubtful accounts as a result of refining our estimate of the allowance based on our historical collection experience .
restricted cash as of december 31 , 2009 , we had $ 236.6 million of restricted cash , of which $ 93.1 million was proceeds from the issuance of tax-exempt bonds and other tax-exempt financings and will be used to fund capital republic services , inc .
and subsidiaries notes to consolidated financial statements , continued


for the year ended december 31 , 2005 , we realized net losses of $ 1 million on sales of available-for- sale securities .
unrealized gains of $ 1 million were included in other comprehensive income at december 31 , 2004 , net of deferred taxes of less than $ 1 million , related to these sales .
for the year ended december 31 , 2004 , we realized net gains of $ 26 million on sales of available-for- sale securities .
unrealized gains of $ 11 million were included in other comprehensive income at december 31 , 2003 , net of deferred taxes of $ 7 million , related to these sales .
note 13 .
equity-based compensation the 2006 equity incentive plan was approved by shareholders in april 2006 , and 20000000 shares of common stock were approved for issuance for stock and stock-based awards , including stock options , stock appreciation rights , restricted stock , deferred stock and performance awards .
in addition , up to 8000000 shares from our 1997 equity incentive plan , that were available to issue or become available due to cancellations and forfeitures , may be awarded under the 2006 plan .
the 1997 plan expired on december 18 , 2006 .
as of december 31 , 2006 , 1305420 shares from the 1997 plan have been added to and may be awarded from the 2006 plan .
as of december 31 , 2006 , 106045 awards have been made under the 2006 plan .
we have stock options outstanding from previous plans , including the 1997 plan , under which no further grants can be made .
the exercise price of non-qualified and incentive stock options and stock appreciation rights may not be less than the fair value of such shares at the date of grant .
stock options and stock appreciation rights issued under the 2006 plan and the prior 1997 plan generally vest over four years and expire no later than ten years from the date of grant .
for restricted stock awards issued under the 2006 plan and the prior 1997 plan , stock certificates are issued at the time of grant and recipients have dividend and voting rights .
in general , these grants vest over three years .
for deferred stock awards issued under the 2006 plan and the prior 1997 plan , no stock is issued at the time of grant .
generally , these grants vest over two- , three- or four-year periods .
performance awards granted under the 2006 equity incentive plan and the prior 1997 plan are earned over a performance period based on achievement of goals , generally over two- to three- year periods .
payment for performance awards is made in shares of our common stock or in cash equal to the fair market value of our common stock , based on certain financial ratios after the conclusion of each performance period .
we record compensation expense , equal to the estimated fair value of the options on the grant date , on a straight-line basis over the options 2019 vesting period .
we use a black-scholes option-pricing model to estimate the fair value of the options granted .
the weighted-average assumptions used in connection with the option-pricing model were as follows for the years indicated. .

                                   | 2006             | 2005             | 2004
---------------------------------- | ---------------- | ---------------- | ----------------
dividend yield                     | 1.41% ( 1.41 % ) | 1.85% ( 1.85 % ) | 1.35% ( 1.35 % )
expected volatility                | 26.50            | 28.70            | 27.10
risk-free interest rate            | 4.60             | 4.19             | 3.02
expected option lives ( in years ) | 7.8              | 7.8              | 5.0

compensation expense related to stock options , stock appreciation rights , restricted stock awards , deferred stock awards and performance awards , which we record as a component of salaries and employee benefits expense in our consolidated statement of income , was $ 208 million , $ 110 million and $ 74 million for the years ended december 31 , 2006 , 2005 and 2004 , respectively .
the related total income tax benefit recorded in our consolidated statement of income was $ 83 million , $ 44 million and $ 30 million for 2006 , 2005 and 2004 , respectively .
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additionally , the latin american soft alloy extrusions business previously included in corporate was moved into the new transportation and construction solutions segment .
the remaining engineered products and solutions segment consists of the alcoa fastening systems and rings ( renamed to include portions of the firth rixson business acquired in november 2014 ) , alcoa power and propulsion ( includes the tital business acquired in march 2015 ) , alcoa forgings and extrusions ( includes the other portions of firth rixson ) , and alcoa titanium and engineered products ( a new business unit that consists solely of the rti international metals business acquired in july 2015 ) business units .
segment information for all prior periods presented was updated to reflect the new segment structure .
atoi for all reportable segments totaled $ 1906 in 2015 , $ 1968 in 2014 , and $ 1267 in 2013 .
the following information provides shipments , sales , and atoi data for each reportable segment , as well as certain production , realized price , and average cost data , for each of the three years in the period ended december 31 , 2015 .
see note q to the consolidated financial statements in part ii item 8 of this form 10-k for additional information .
alumina .

                                                             | 2015   | 2014   | 2013
------------------------------------------------------------ | ------ | ------ | ------
alumina production ( kmt )                                   | 15720  | 16606  | 16618
third-party alumina shipments ( kmt )                        | 10755  | 10652  | 9966
alcoa 2019s average realized price per metric ton of alumina | $ 317  | $ 324  | $ 328
alcoa 2019s average cost per metric ton of alumina*          | $ 237  | $ 282  | $ 295
third-party sales                                            | $ 3455 | $ 3509 | $ 3326
intersegment sales                                           | 1687   | 1941   | 2235
total sales                                                  | $ 5142 | $ 5450 | $ 5561
atoi                                                         | $ 746  | $ 370  | $ 259

* includes all production-related costs , including raw materials consumed ; conversion costs , such as labor , materials , and utilities ; depreciation , depletion , and amortization ; and plant administrative expenses .
this segment represents a portion of alcoa 2019s upstream operations and consists of the company 2019s worldwide refining system .
alumina mines bauxite , from which alumina is produced and then sold directly to external smelter customers , as well as to the primary metals segment ( see primary metals below ) , or to customers who process it into industrial chemical products .
more than half of alumina 2019s production is sold under supply contracts to third parties worldwide , while the remainder is used internally by the primary metals segment .
alumina produced by this segment and used internally is transferred to the primary metals segment at prevailing market prices .
a portion of this segment 2019s third- party sales are completed through the use of agents , alumina traders , and distributors .
generally , the sales of this segment are transacted in u.s .
dollars while costs and expenses of this segment are transacted in the local currency of the respective operations , which are the australian dollar , the brazilian real , the u.s .
dollar , and the euro .
awac is an unincorporated global joint venture between alcoa and alumina limited and consists of a number of affiliated operating entities , which own , or have an interest in , or operate the bauxite mines and alumina refineries within the alumina segment ( except for the poc 0327os de caldas refinery in brazil and a portion of the sa 0303o lul 0301s refinery in brazil ) .
alcoa owns 60% ( 60 % ) and alumina limited owns 40% ( 40 % ) of these individual entities , which are consolidated by the company for financial reporting purposes .
as such , the results and analysis presented for the alumina segment are inclusive of alumina limited 2019s 40% ( 40 % ) interest .
in december 2014 , awac completed the sale of its ownership stake in jamalco , a bauxite mine and alumina refinery joint venture in jamaica , to noble group ltd .
jamalco was 55% ( 55 % ) owned by a subsidiary of awac , and , while owned by awac , 55% ( 55 % ) of both the operating results and assets and liabilities of this joint venture were included in the alumina segment .
as it relates to awac 2019s previous 55% ( 55 % ) ownership stake , the refinery ( awac 2019s share of the capacity was 779 kmt-per-year ) generated sales ( third-party and intersegment ) of approximately $ 200 in 2013 , and the refinery and mine combined , at the time of divestiture , had approximately 500 employees .
see restructuring and other charges in results of operations above.


2022 integration of new projects .
during 2010 , the following projects were acquired or commenced commercial operations : project location fuel aes equity interest ( percent , rounded ) .

project           | location       | fuel  | gross mw | aes equity interest ( percent rounded )
----------------- | -------------- | ----- | -------- | ---------------------------------------
ballylumford      | united kingdom | gas   | 1246     | 100% ( 100 % )
jhrh ( 1 )        | china          | hydro | 379      | 35% ( 35 % )
nueva ventanas    | chile          | coal  | 272      | 71% ( 71 % )
st . nikola       | bulgaria       | wind  | 156      | 89% ( 89 % )
guacolda 4 ( 2 )  | chile          | coal  | 152      | 35% ( 35 % )
dong qi ( 3 )     | china          | wind  | 49       | 49% ( 49 % )
huanghua ii ( 3 ) | china          | wind  | 49       | 49% ( 49 % )
st . patrick      | france         | wind  | 35       | 100% ( 100 % )
north rhins       | scotland       | wind  | 22       | 100% ( 100 % )
kepezkaya         | turkey         | hydro | 28       | 51% ( 51 % )
damlapinar ( 4 )  | turkey         | hydro | 16       | 51% ( 51 % )

damlapinar ( 4 ) .
.
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turkey hydro 16 51% ( 51 % ) ( 1 ) jianghe rural electrification development co .
ltd .
( 201cjhrh 201d ) and aes china hydropower investment co .
ltd .
entered into an agreement to acquire a 49% ( 49 % ) interest in this joint venture in june 2010 .
acquisition of 35% ( 35 % ) ownership was completed in june 2010 and the transfer of the remaining 14% ( 14 % ) ownership , which is subject to approval by the chinese government , is expected to be completed in may 2011 .
( 2 ) guacolda is an equity method investment indirectly held by aes through gener .
the aes equity interest reflects the 29% ( 29 % ) noncontrolling interests in gener .
( 3 ) joint venture with guohua energy investment co .
ltd .
( 4 ) joint venture with i.c .
energy .
key trends and uncertainties our operations continue to face many risks as discussed in item 1a . 2014risk factors of this form 10-k .
some of these challenges are also described above in key drivers of results in 2010 .
we continue to monitor our operations and address challenges as they arise .
development .
during the past year , the company has successfully acquired and completed construction of a number of projects , totaling approximately 2404 mw , including the acquisition of ballylumford in the united kingdom and completion of construction of a number of projects in europe , chile and china .
however , as discussed in item 1a . 2014risk factors 2014our business is subject to substantial development uncertainties of this form 10-k , our development projects are subject to uncertainties .
certain delays have occurred at the 670 mw maritza coal-fired project in bulgaria , and the project has not yet begun commercial operations .
as noted in note 10 2014debt included in item 8 of this form 10-k , as a result of these delays the project debt is in default and the company is working with its lenders to resolve the default .
in addition , as noted in item 3 . 2014legal proceedings , the company is in litigation with the contractor regarding the cause of delays .
at this time , we believe that maritza will commence commercial operations for at least some of the project 2019s capacity by the second half of 2011 .
however , commencement of commercial operations could be delayed beyond this time frame .
there can be no assurance that maritza will achieve commercial operations , in whole or in part , by the second half of 2011 , resolve the default with the lenders or prevail in the litigation referenced above , which could result in the loss of some or all of our investment or require additional funding for the project .
any of these events could have a material adverse effect on the company 2019s operating results or financial position .
global economic conditions .
during the past few years , economic conditions in some countries where our subsidiaries conduct business have deteriorated .
although the economic conditions in several of these countries have improved in recent months , our businesses could be impacted in the event these recent trends do not continue.


through the certegy merger , the company has an obligation to service $ 200 million ( aggregate principal amount ) of unsecured 4.75% ( 4.75 % ) fixed-rate notes due in 2008 .
the notes were recorded in purchase accounting at a discount of $ 5.7 million , which is being amortized over the term of the notes .
the notes accrue interest at a rate of 4.75% ( 4.75 % ) per year , payable semi-annually in arrears on each march 15 and september 15 .
on april 11 , 2005 , fis entered into interest rate swap agreements which have effectively fixed the interest rate at approximately 5.4% ( 5.4 % ) through april 2008 on $ 350 million of the term loan facilities ( or its replacement debt ) and at approximately 5.2% ( 5.2 % ) through april 2007 on an additional $ 350 million of the term loan .
the company has designated these interest rate swaps as cash flow hedges in accordance with sfas no .
133 .
the estimated fair value of the cash flow hedges results in an asset to the company of $ 4.9 million and $ 5.2 million , as of december 31 , 2006 and december 31 , 2005 , respectively , which is included in the accompanying consolidated balance sheets in other noncurrent assets and as a component of accumulated other comprehensive earnings , net of deferred taxes .
a portion of the amount included in accumulated other comprehensive earnings is reclassified into interest expense as a yield adjustment as interest payments are made on the term loan facilities .
the company 2019s existing cash flow hedges are highly effective and there is no current impact on earnings due to hedge ineffectiveness .
it is the policy of the company to execute such instruments with credit-worthy banks and not to enter into derivative financial instruments for speculative purposes .
principal maturities at december 31 , 2006 ( and at december 31 , 2006 after giving effect to the debt refinancing completed on january 18 , 2007 ) for the next five years and thereafter are as follows ( in thousands ) : december 31 , january 18 , 2007 refinancing .

           | december 31 2006 | january 18 2007 refinancing
---------- | ---------------- | ---------------------------
2007       | $ 61661          | $ 96161
2008       | 257541           | 282041
2009       | 68129            | 145129
2010       | 33586            | 215586
2011       | 941875           | 165455
thereafter | 1646709          | 2105129
total      | $ 3009501        | $ 3009501

fidelity national information services , inc .
and subsidiaries and affiliates consolidated and combined financial statements notes to consolidated and combined financial statements 2014 ( continued )


the analysis of our depreciation studies .
changes in the estimated service lives of our assets and their related depreciation rates are implemented prospectively .
under group depreciation , the historical cost ( net of salvage ) of depreciable property that is retired or replaced in the ordinary course of business is charged to accumulated depreciation and no gain or loss is recognized .
the historical cost of certain track assets is estimated using ( i ) inflation indices published by the bureau of labor statistics and ( ii ) the estimated useful lives of the assets as determined by our depreciation studies .
the indices were selected because they closely correlate with the major costs of the properties comprising the applicable track asset classes .
because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of property is completely retired , we continually monitor the estimated service lives of our assets and the accumulated depreciation associated with each asset class to ensure our depreciation rates are appropriate .
in addition , we determine if the recorded amount of accumulated depreciation is deficient ( or in excess ) of the amount indicated by our depreciation studies .
any deficiency ( or excess ) is amortized as a component of depreciation expense over the remaining service lives of the applicable classes of assets .
for retirements of depreciable railroad properties that do not occur in the normal course of business , a gain or loss may be recognized if the retirement meets each of the following three conditions : ( i ) is unusual , ( ii ) is material in amount , and ( iii ) varies significantly from the retirement profile identified through our depreciation studies .
a gain or loss is recognized in other income when we sell land or dispose of assets that are not part of our railroad operations .
when we purchase an asset , we capitalize all costs necessary to make the asset ready for its intended use .
however , many of our assets are self-constructed .
a large portion of our capital expenditures is for replacement of existing track assets and other road properties , which is typically performed by our employees , and for track line expansion and other capacity projects .
costs that are directly attributable to capital projects ( including overhead costs ) are capitalized .
direct costs that are capitalized as part of self- constructed assets include material , labor , and work equipment .
indirect costs are capitalized if they clearly relate to the construction of the asset .
general and administrative expenditures are expensed as incurred .
normal repairs and maintenance , including rail grinding , are also expensed as incurred , while costs incurred that extend the useful life of an asset , improve the safety of our operations or improve operating efficiency are capitalized .
these costs are allocated using appropriate statistical bases .
total expense for repairs and maintenance incurred was $ 2.1 billion for 2012 , $ 2.2 billion for 2011 , and $ 2.0 billion for 2010 .
assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease .
amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease .
12 .
accounts payable and other current liabilities dec .
31 , dec .
31 , millions 2012 2011 .

millions                                            | dec . 31 2012 | dec . 312011
--------------------------------------------------- | ------------- | ------------
accounts payable                                    | $ 825         | $ 819
accrued wages and vacation                          | 376           | 363
income and other taxes                              | 368           | 482
dividends payable                                   | 318           | 284
accrued casualty costs                              | 213           | 249
interest payable                                    | 172           | 197
equipment rents payable                             | 95            | 90
other                                               | 556           | 624
total accounts payable and othercurrent liabilities | $ 2923        | $ 3108