bhge 2018 form 10-k | 31 business environment the following discussion and analysis summarizes the significant factors affecting our results of operations , financial condition and liquidity position as of and for the year ended december 31 , 2018 , 2017 and 2016 , and should be read in conjunction with the consolidated and combined financial statements and related notes of the company .
we operate in more than 120 countries helping customers find , evaluate , drill , produce , transport and process hydrocarbon resources .
our revenue is predominately generated from the sale of products and services to major , national , and independent oil and natural gas companies worldwide , and is dependent on spending by our customers for oil and natural gas exploration , field development and production .
this spending is driven by a number of factors , including our customers' forecasts of future energy demand and supply , their access to resources to develop and produce oil and natural gas , their ability to fund their capital programs , the impact of new government regulations and most importantly , their expectations for oil and natural gas prices as a key driver of their cash flows .
oil and natural gas prices oil and natural gas prices are summarized in the table below as averages of the daily closing prices during each of the periods indicated. .

                                      | 2018    | 2017    | 2016
------------------------------------- | ------- | ------- | -------
brent oil prices ( $ /bbl ) ( 1 )     | $ 71.34 | $ 54.12 | $ 43.64
wti oil prices ( $ /bbl ) ( 2 )       | 65.23   | 50.80   | 43.29
natural gas prices ( $ /mmbtu ) ( 3 ) | 3.15    | 2.99    | 2.52

brent oil prices ( $ /bbl ) ( 1 ) $ 71.34 $ 54.12 $ 43.64 wti oil prices ( $ /bbl ) ( 2 ) 65.23 50.80 43.29 natural gas prices ( $ /mmbtu ) ( 3 ) 3.15 2.99 2.52 ( 1 ) energy information administration ( eia ) europe brent spot price per barrel ( 2 ) eia cushing , ok wti ( west texas intermediate ) spot price ( 3 ) eia henry hub natural gas spot price per million british thermal unit 2018 demonstrated the volatility of the oil and gas market .
through the first three quarters of 2018 , we experienced stability in the north american and international markets .
however , in the fourth quarter of 2018 commodity prices dropped nearly 40% ( 40 % ) resulting in increased customer uncertainty .
from an offshore standpoint , through most of 2018 , we saw multiple large offshore projects reach positive final investment decisions , and the lng market and outlook improved throughout 2018 , driven by increased demand globally .
in 2018 , the first large north american lng positive final investment decision was reached .
outside of north america , customer spending is highly driven by brent oil prices , which increased on average throughout the year .
average brent oil prices increased to $ 71.34/bbl in 2018 from $ 54.12/bbl in 2017 , and ranged from a low of $ 50.57/bbl in december 2018 , to a high of $ 86.07/bbl in october 2018 .
for the first three quarters of 2018 , brent oil prices increased sequentially .
however , in the fourth quarter , brent oil prices declined 39% ( 39 % ) versus the end of the third quarter , as a result of increased supply from the u.s. , worries of a global economic slowdown , and lower than expected production cuts .
in north america , customer spending is highly driven by wti oil prices , which similar to brent oil prices , on average increased throughout the year .
average wti oil prices increased to $ 65.23/bbl in 2018 from $ 50.80/bbl in 2017 , and ranged from a low of $ 44.48/bbl in december 2018 , to a high of $ 77.41/bbl in june 2018 .
in north america , natural gas prices , as measured by the henry hub natural gas spot price , averaged $ 3.15/ mmbtu in 2018 , representing a 6% ( 6 % ) increase over the prior year .
throughout the year , henry hub natural gas spot prices ranged from a high of $ 6.24/mmbtu in january 2018 to a low of $ 2.49/mmbtu in february 2018 .
according to the u.s .
department of energy ( doe ) , working natural gas in storage at the end of 2018 was 2705 billion cubic feet ( bcf ) , which was 15.6% ( 15.6 % ) , or 421 bcf , below the corresponding week in 2017.


credit facilities .
as such , our foreign cash and cash equivalents are not expected to be a key source of liquidity to our domestic operations .
at september 30 , 2019 , we had approximately $ 2.9 billion of availability under our committed credit facilities , primarily under our revolving credit facility , the majority of which matures on july 1 , 2022 .
this liquidity may be used to provide for ongoing working capital needs and for other general corporate purposes , including acquisitions , dividends and stock repurchases .
certain restrictive covenants govern our maximum availability under the credit facilities .
we test and report our compliance with these covenants as required and we were in compliance with all of these covenants at september 30 , 2019 .
at september 30 , 2019 , we had $ 129.8 million of outstanding letters of credit not drawn cash and cash equivalents were $ 151.6 million at september 30 , 2019 and $ 636.8 million at september 30 , 2018 .
we used a significant portion of the cash and cash equivalents on hand at september 30 , 2018 in connection with the closing of the kapstone acquisition .
primarily all of the cash and cash equivalents at september 30 , 2019 were held outside of the u.s .
at september 30 , 2019 , total debt was $ 10063.4 million , $ 561.1 million of which was current .
at september 30 , 2018 , total debt was $ 6415.2 million , $ 740.7 million of which was current .
the increase in debt was primarily related to the kapstone acquisition .
cash flow activity .

( in millions )                                        | year ended september 30 , 2019 | year ended september 30 , 2018
------------------------------------------------------ | ------------------------------ | ------------------------------
net cash provided by operating activities              | $ 2310.2                       | $ 1931.2
net cash used for investing activities                 | $ -4579.6 ( 4579.6 )           | $ -815.1 ( 815.1 )
net cash provided by ( used for ) financing activities | $ 1780.2                       | $ -755.1 ( 755.1 )

net cash provided by operating activities during fiscal 2019 increased $ 379.0 million from fiscal 2018 primarily due to higher cash earnings and a $ 340.3 million net decrease in the use of working capital compared to the prior year .
as a result of the retrospective adoption of asu 2016-15 and asu 2016-18 ( each as hereinafter defined ) as discussed in 201cnote 1 .
description of business and summary of significant accounting policies 201d of the notes to consolidated financial statements , net cash provided by operating activities for fiscal 2018 was reduced by $ 489.7 million and cash provided by investing activities increased $ 483.8 million , primarily for the change in classification of proceeds received for beneficial interests obtained for transferring trade receivables in securitization transactions .
net cash used for investing activities of $ 4579.6 million in fiscal 2019 consisted primarily of $ 3374.2 million for cash paid for the purchase of businesses , net of cash acquired ( excluding the assumption of debt ) , primarily related to the kapstone acquisition , and $ 1369.1 million for capital expenditures that were partially offset by $ 119.1 million of proceeds from the sale of property , plant and equipment primarily related to the sale of our atlanta beverage facility , $ 33.2 million of proceeds from corporate owned life insurance benefits and $ 25.5 million of proceeds from property , plant and equipment insurance proceeds related to the panama city , fl mill .
net cash used for investing activities of $ 815.1 million in fiscal 2018 consisted primarily of $ 999.9 million for capital expenditures , $ 239.9 million for cash paid for the purchase of businesses , net of cash acquired primarily related to the plymouth acquisition and the schl fcter acquisition , and $ 108.0 million for an investment in grupo gondi .
these investments were partially offset by $ 461.6 million of cash receipts on sold trade receivables as a result of the adoption of asu 2016-15 , $ 24.0 million of proceeds from the sale of certain affiliates as well as our solid waste management brokerage services business and $ 23.3 million of proceeds from the sale of property , plant and equipment .
in fiscal 2019 , net cash provided by financing activities of $ 1780.2 million consisted primarily of a net increase in debt of $ 2314.6 million , primarily related to the kapstone acquisition and partially offset by cash dividends paid to stockholders of $ 467.9 million and purchases of common stock of $ 88.6 million .
in fiscal 2018 , net cash used for financing activities of $ 755.1 million consisted primarily of cash dividends paid to stockholders of $ 440.9 million and purchases of common stock of $ 195.1 million and net repayments of debt of $ 120.1 million.


the company endeavors to actively engage with every insured account posing significant potential asbestos exposure to mt .
mckinley .
such engagement can take the form of pursuing a final settlement , negotiation , litigation , or the monitoring of claim activity under settlement in place ( 201csip 201d ) agreements .
sip agreements generally condition an insurer 2019s payment upon the actual claim experience of the insured and may have annual payment caps or other measures to control the insurer 2019s payments .
the company 2019s mt .
mckinley operation is currently managing four sip agreements , one of which was executed prior to the acquisition of mt .
mckinley in 2000 .
the company 2019s preference with respect to coverage settlements is to execute settlements that call for a fixed schedule of payments , because such settlements eliminate future uncertainty .
the company has significantly enhanced its classification of insureds by exposure characteristics over time , as well as its analysis by insured for those it considers to be more exposed or active .
those insureds identified as relatively less exposed or active are subject to less rigorous , but still active management , with an emphasis on monitoring those characteristics , which may indicate an increasing exposure or levels of activity .
the company continually focuses on further enhancement of the detailed estimation processes used to evaluate potential exposure of policyholders .
everest re 2019s book of assumed a&e reinsurance is relatively concentrated within a limited number of contracts and for a limited period , from 1974 to 1984 .
because the book of business is relatively concentrated and the company has been managing the a&e exposures for many years , its claim staff is familiar with the ceding companies that have generated most of these liabilities in the past and which are therefore most likely to generate future liabilities .
the company 2019s claim staff has developed familiarity both with the nature of the business written by its ceding companies and the claims handling and reserving practices of those companies .
this level of familiarity enhances the quality of the company 2019s analysis of its exposure through those companies .
as a result , the company believes that it can identify those claims on which it has unusual exposure , such as non-products asbestos claims , for concentrated attention .
however , in setting reserves for its reinsurance liabilities , the company relies on claims data supplied , both formally and informally by its ceding companies and brokers .
this furnished information is not always timely or accurate and can impact the accuracy and timeliness of the company 2019s ultimate loss projections .
the following table summarizes the composition of the company 2019s total reserves for a&e losses , gross and net of reinsurance , for the periods indicated: .

( dollars in millions )                                                           | years ended december 31 , 2012 | years ended december 31 , 2011 | years ended december 31 , 2010
--------------------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
case reserves reported by ceding companies                                        | $ 138.4                        | $ 145.6                        | $ 135.4
additional case reserves established by the company ( assumed reinsurance ) ( 1 ) | 90.6                           | 102.9                          | 116.1
case reserves established by the company ( direct insurance )                     | 36.7                           | 40.6                           | 38.9
incurred but not reported reserves                                                | 177.1                          | 210.9                          | 264.4
gross reserves                                                                    | 442.8                          | 499.9                          | 554.8
reinsurance receivable                                                            | -17.1 ( 17.1 )                 | -19.8 ( 19.8 )                 | -21.9 ( 21.9 )
net reserves                                                                      | $ 425.7                        | $ 480.2                        | $ 532.9

( 1 ) additional reserves are case specific reserves established by the company in excess of those reported by the ceding company , based on the company 2019s assessment of the covered loss .
( some amounts may not reconcile due to rounding. ) additional losses , including those relating to latent injuries and other exposures , which are as yet unrecognized , the type or magnitude of which cannot be foreseen by either the company or the industry , may emerge in the future .
such future emergence could have material adverse effects on the company 2019s future financial condition , results of operations and cash flows.


management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) net cash used in investing activities during 2012 primarily related to payments for capital expenditures and acquisitions , partially offset by the net proceeds of $ 94.8 received from the sale of our remaining holdings in facebook .
capital expenditures of $ 169.2 primarily related to computer hardware and software , and leasehold improvements .
capital expenditures increased in 2012 compared to the prior year , primarily due to an increase in leasehold improvements made during the year .
payments for acquisitions of $ 145.5 primarily related to payments for new acquisitions .
financing activities net cash used in financing activities during 2013 primarily related to the purchase of long-term debt , the repurchase of our common stock , and payment of dividends .
we redeemed all $ 600.0 in aggregate principal amount of our 10.00% ( 10.00 % ) notes .
in addition , we repurchased 31.8 shares of our common stock for an aggregate cost of $ 481.8 , including fees , and made dividend payments of $ 126.0 on our common stock .
net cash provided by financing activities during 2012 primarily reflected net proceeds from our debt transactions .
we issued $ 300.0 in aggregate principal amount of 2.25% ( 2.25 % ) senior notes due 2017 ( the 201c2.25% ( 201c2.25 % ) notes 201d ) , $ 500.0 in aggregate principal amount of 3.75% ( 3.75 % ) senior notes due 2023 ( the 201c3.75% ( 201c3.75 % ) notes 201d ) and $ 250.0 in aggregate principal amount of 4.00% ( 4.00 % ) senior notes due 2022 ( the 201c4.00% ( 201c4.00 % ) notes 201d ) .
the proceeds from the issuance of the 4.00% ( 4.00 % ) notes were applied towards the repurchase and redemption of $ 399.6 in aggregate principal amount of our 4.25% ( 4.25 % ) notes .
offsetting the net proceeds from our debt transactions was the repurchase of 32.7 shares of our common stock for an aggregate cost of $ 350.5 , including fees , and dividend payments of $ 103.4 on our common stock .
foreign exchange rate changes the effect of foreign exchange rate changes on cash and cash equivalents included in the consolidated statements of cash flows resulted in a decrease of $ 94.1 in 2013 .
the decrease was primarily a result of the u.s .
dollar being stronger than several foreign currencies , including the australian dollar , brazilian real , japanese yen , canadian dollar and south african rand as of december 31 , 2013 compared to december 31 , 2012 .
the effect of foreign exchange rate changes on cash and cash equivalents included in the consolidated statements of cash flows resulted in a decrease of $ 6.2 in 2012 .
the decrease was a result of the u.s .
dollar being stronger than several foreign currencies , including the brazilian real and south african rand , offset by the u.s .
dollar being weaker than other foreign currencies , including the australian dollar , british pound and the euro , as of as of december 31 , 2012 compared to december 31 , 2011. .

balance sheet data                              | december 31 , 2013 | december 31 , 2012
----------------------------------------------- | ------------------ | ------------------
cash cash equivalents and marketable securities | $ 1642.1           | $ 2590.8
short-term borrowings                           | $ 179.1            | $ 172.1
current portion of long-term debt               | 353.6              | 216.6
long-term debt                                  | 1129.8             | 2060.8
total debt                                      | $ 1662.5           | $ 2449.5

liquidity outlook we expect our cash flow from operations , cash and cash equivalents to be sufficient to meet our anticipated operating requirements at a minimum for the next twelve months .
we also have a committed corporate credit facility as well as uncommitted facilities available to support our operating needs .
we continue to maintain a disciplined approach to managing liquidity , with flexibility over significant uses of cash , including our capital expenditures , cash used for new acquisitions , our common stock repurchase program and our common stock dividends.


our refineries processed 944 mbpd of crude oil and 207 mbpd of other charge and blend stocks .
the table below sets forth the location and daily crude oil refining capacity of each of our refineries as of december 31 , 2008 .
crude oil refining capacity ( thousands of barrels per day ) 2008 .

( thousands of barrels per day ) | 2008
-------------------------------- | ----
garyville louisiana              | 256
catlettsburg kentucky            | 226
robinson illinois                | 204
detroit michigan                 | 102
canton ohio                      | 78
texas city texas                 | 76
st . paul park minnesota         | 74
total                            | 1016

our refineries include crude oil atmospheric and vacuum distillation , fluid catalytic cracking , catalytic reforming , desulfurization and sulfur recovery units .
the refineries process a wide variety of crude oils and produce numerous refined products , ranging from transportation fuels , such as reformulated gasolines , blend- grade gasolines intended for blending with fuel ethanol and ultra-low sulfur diesel fuel , to heavy fuel oil and asphalt .
additionally , we manufacture aromatics , cumene , propane , propylene , sulfur and maleic anhydride .
our refineries are integrated with each other via pipelines , terminals and barges to maximize operating efficiency .
the transportation links that connect our refineries allow the movement of intermediate products between refineries to optimize operations , produce higher margin products and utilize our processing capacity efficiently .
our garyville , louisiana , refinery is located along the mississippi river in southeastern louisiana .
the garyville refinery processes heavy sour crude oil into products such as gasoline , distillates , sulfur , asphalt , propane , polymer grade propylene , isobutane and coke .
in 2006 , we approved an expansion of our garyville refinery by 180 mbpd to 436 mbpd , with a currently projected cost of $ 3.35 billion ( excluding capitalized interest ) .
construction commenced in early 2007 and is continuing on schedule .
we estimate that , as of december 31 , 2008 , this project is approximately 75 percent complete .
we expect to complete the expansion in late 2009 .
our catlettsburg , kentucky , refinery is located in northeastern kentucky on the western bank of the big sandy river , near the confluence with the ohio river .
the catlettsburg refinery processes sweet and sour crude oils into products such as gasoline , asphalt , diesel , jet fuel , petrochemicals , propane , propylene and sulfur .
our robinson , illinois , refinery is located in the southeastern illinois town of robinson .
the robinson refinery processes sweet and sour crude oils into products such as multiple grades of gasoline , jet fuel , kerosene , diesel fuel , propane , propylene , sulfur and anode-grade coke .
our detroit , michigan , refinery is located near interstate 75 in southwest detroit .
the detroit refinery processes light sweet and heavy sour crude oils , including canadian crude oils , into products such as gasoline , diesel , asphalt , slurry , propane , chemical grade propylene and sulfur .
in 2007 , we approved a heavy oil upgrading and expansion project at our detroit , michigan , refinery , with a current projected cost of $ 2.2 billion ( excluding capitalized interest ) .
this project will enable the refinery to process additional heavy sour crude oils , including canadian bitumen blends , and will increase its crude oil refining capacity by about 15 percent .
construction began in the first half of 2008 and is presently expected to be complete in mid-2012 .
our canton , ohio , refinery is located approximately 60 miles southeast of cleveland , ohio .
the canton refinery processes sweet and sour crude oils into products such as gasoline , diesel fuels , kerosene , propane , sulfur , asphalt , roofing flux , home heating oil and no .
6 industrial fuel oil .
our texas city , texas , refinery is located on the texas gulf coast approximately 30 miles south of houston , texas .
the refinery processes sweet crude oil into products such as gasoline , propane , chemical grade propylene , slurry , sulfur and aromatics .
our st .
paul park , minnesota , refinery is located in st .
paul park , a suburb of minneapolis-st .
paul .
the st .
paul park refinery processes predominantly canadian crude oils into products such as gasoline , diesel , jet fuel , kerosene , asphalt , propane , propylene and sulfur.


management 2019s discussion and analysis of financial condition and results of operations 82 fifth third bancorp to 100 million shares of its outstanding common stock in the open market or in privately negotiated transactions , and to utilize any derivative or similar instrument to affect share repurchase transactions .
this share repurchase authorization replaced the board 2019s previous authorization .
on may 21 , 2013 , the bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the bancorp purchased 25035519 shares , or approximately $ 539 million , of its outstanding common stock on may 24 , 2013 .
the bancorp repurchased the shares of its common stock as part of its 100 million share repurchase program previously announced on march 19 , 2013 .
at settlement of the forward contract on october 1 , 2013 , the bancorp received an additional 4270250 shares which were recorded as an adjustment to the basis in the treasury shares purchased on the acquisition date .
on november 13 , 2013 , the bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the bancorp purchased 8538423 shares , or approximately $ 200 million , of its outstanding common stock on november 18 , 2013 .
the bancorp repurchased the shares of its common stock as part of its board approved 100 million share repurchase program previously announced on march 19 , 2013 .
the bancorp expects the settlement of the transaction to occur on or before february 28 , 2014 .
on december 10 , 2013 , the bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the bancorp purchased 19084195 shares , or approximately $ 456 million , of its outstanding common stock on december 13 , 2013 .
the bancorp repurchased the shares of its common stock as part of its board approved 100 million share repurchase program previously announced on march 19 , 2013 .
the bancorp expects the settlement of the transaction to occur on or before march 26 , 2014 .
on january 28 , 2014 , the bancorp entered into an accelerated share repurchase transaction with a counterparty pursuant to which the bancorp purchased 3950705 shares , or approximately $ 99 million , of its outstanding common stock on january 31 , 2014 .
the bancorp repurchased the shares of its common stock as part of its board approved 100 million share repurchase program previously announced on march 19 , 2013 .
the bancorp expects the settlement of the transaction to occur on or before march 26 , 2014 .
table 61 : share repurchases .

for the years ended december 31                 | 2013                   | 2012                   | 2011
----------------------------------------------- | ---------------------- | ---------------------- | --------
shares authorized for repurchase at january 1   | 63046682               | 19201518               | 19201518
additional authorizations ( a )                 | 45541057               | 86269178               | -
share repurchases ( b )                         | -65516126 ( 65516126 ) | -42424014 ( 42424014 ) | -
shares authorized for repurchase at december 31 | 43071613               | 63046682               | 19201518
average price paid per share                    | $ 18.80                | $ 14.82                | n/a

( a ) in march 2013 , the bancorp announced that its board of directors had authorized management to purchase 100 million shares of the bancorp 2019s common stock through the open market or in any private transaction .
the authorization does not include specific price targets or an expiration date .
this share repurchase authorization replaces the board 2019s previous authorization pursuant to which approximately 54 million shares remained available for repurchase by the bancorp .
( b ) excludes 1863097 , 2059003 and 1164254 shares repurchased during 2013 , 2012 , and 2011 , respectively , in connection with various employee compensation plans .
these repurchases are not included in the calculation for average price paid and do not count against the maximum number of shares that may yet be repurchased under the board of directors 2019 authorization .
stress tests and ccar the frb issued guidelines known as ccar , which provide a common , conservative approach to ensure bhcs , including the bancorp , hold adequate capital to maintain ready access to funding , continue operations and meet their obligations to creditors and counterparties , and continue to serve as credit intermediaries , even in adverse conditions .
the ccar process requires the submission of a comprehensive capital plan that assumes a minimum planning horizon of nine quarters under various economic scenarios .
the mandatory elements of the capital plan are an assessment of the expected use and sources of capital over the planning horizon , a description of all planned capital actions over the planning horizon , a discussion of any expected changes to the bancorp 2019s business plan that are likely to have a material impact on its capital adequacy or liquidity , a detailed description of the bancorp 2019s process for assessing capital adequacy and the bancorp 2019s capital policy .
the capital plan must reflect the revised capital framework that the frb adopted in connection with the implementation of the basel iii accord , including the framework 2019s minimum regulatory capital ratios and transition arrangements .
the frb 2019s review of the capital plan will assess the comprehensiveness of the capital plan , the reasonableness of the assumptions and the analysis underlying the capital plan .
additionally , the frb reviews the robustness of the capital adequacy process , the capital policy and the bancorp 2019s ability to maintain capital above the minimum regulatory capital ratios as they transition to basel iii and above a basel i tier 1 common ratio of 5 percent under baseline and stressful conditions throughout a nine- quarter planning horizon .
the frb issued stress testing rules that implement section 165 ( i ) ( 1 ) and ( i ) ( 2 ) of the dfa .
large bhcs , including the bancorp , are subject to the final stress testing rules .
the rules require both supervisory and company-run stress tests , which provide forward- looking information to supervisors to help assess whether institutions have sufficient capital to absorb losses and support operations during adverse economic conditions .
in march of 2013 , the frb announced it had completed the 2013 ccar .
for bhcs that proposed capital distributions in their plan , the frb either objected to the plan or provided a non- objection whereby the frb concurred with the proposed 2013 capital distributions .
the frb indicated to the bancorp that it did not object to the following proposed capital actions for the period beginning april 1 , 2013 and ending march 31 , 2014 : f0b7 increase in the quarterly common stock dividend to $ 0.12 per share ; f0b7 repurchase of up to $ 750 million in trups subject to the determination of a regulatory capital event and replacement with the issuance of a similar amount of tier ii-qualifying subordinated debt ; f0b7 conversion of the $ 398 million in outstanding series g 8.5% ( 8.5 % ) convertible preferred stock into approximately 35.5 million common shares issued to the holders .
if this conversion were to occur , the bancorp would intend to repurchase common shares equivalent to those issued in the conversion up to $ 550 million in market value , and issue $ 550 million in preferred stock;


stock performance graph this performance graph shall not be deemed 201cfiled 201d for purposes of section 18 of the exchange act , or incorporated by reference into any filing of quintiles ims holdings , inc .
under the exchange act or under the securities act , except as shall be expressly set forth by specific reference in such filing .
the following graph shows a comparison from may 9 , 2013 ( the date our common stock commenced trading on the nyse ) through december 31 , 2016 of the cumulative total return for our common stock , the standard & poor 2019s 500 stock index ( 201cs&p 500 201d ) and a select peer group .
the peer group consists of cerner corporation , charles river laboratories , inc. , dun & bradstreet corporation , equifax inc. , icon plc , ihs markit ltd. , inc research holdings , laboratory corporation of america holdings , nielsen n.v. , parexel international corporation , inc. , pra health sciences , inc. , thomson reuters corporation and verisk analytics , inc .
the companies in our peer group are publicly traded information services , information technology or contract research companies , and thus share similar business model characteristics to quintilesims , or provide services to similar customers as quintilesims .
many of these companies are also used by our compensation committee for purposes of compensation benchmarking .
the graph assumes that $ 100 was invested in quintilesims , the s&p 500 and the peer group as of the close of market on may 9 , 2013 , assumes the reinvestments of dividends , if any .
the s&p 500 and our peer group are included for comparative purposes only .
they do not necessarily reflect management 2019s opinion that the s&p 500 and our peer group are an appropriate measure of the relative performance of the stock involved , and they are not intended to forecast or be indicative of possible future performance of our common stock .
s&p 500 quintilesims peer group .

           | 5/9/2013 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016
---------- | -------- | ---------- | ---------- | ---------- | ----------
q          | $ 100    | $ 110      | $ 140      | $ 163      | $ 181
peer group | $ 100    | $ 116      | $ 143      | $ 151      | $ 143
s&p 500    | $ 100    | $ 114      | $ 127      | $ 126      | $ 138

item 6 .
selected financial data we have derived the following consolidated statements of income data for 2016 , 2015 and 2014 and consolidated balance sheet data as of december 31 , 2016 and 2015 from our audited consolidated financial


c o n s t e l l a t i o n b r a n d s , i n c .
baroness philippine de rothschild announced an agree- ment to maintain equal ownership of opus one .
opus one produces fine wines at its napa valley winery .
the acquisition of robert mondavi supports the com- pany 2019s strategy of strengthening the breadth of its portfolio across price segments to capitalize on the overall growth in the premium , super-premium and fine wine categories .
the company believes that the acquired robert mondavi brand names have strong brand recognition globally .
the vast majority of sales from these brands are generated in the united states .
the company is leveraging the robert mondavi brands in the united states through its selling , marketing and distribution infrastructure .
the company also intends to further expand distribution for the robert mondavi brands in europe through its constellation europe infrastructure .
the robert mondavi acquisition supports the com- pany 2019s strategy of growth and breadth across categories and geographies , and strengthens its competitive position in its core markets .
the robert mondavi acquisition provides the company with a greater presence in the growing premium , super-premium and fine wine sectors within the united states and the ability to capitalize on the broader geographic distribution in strategic international markets .
in particular , the company believes there are growth opportunities for premium , super-premium and fine wines in the united kingdom and other 201cnew world 201d wine markets .
total con- sideration paid in cash to the robert mondavi shareholders was $ 1030.7 million .
additionally , the company incurred direct acquisition costs of $ 12.0 million .
the purchase price was financed with borrowings under the company 2019s 2004 credit agreement ( as defined in note 9 ) .
in accordance with the purchase method of accounting , the acquired net assets are recorded at fair value at the date of acquisition .
the purchase price was based primarily on the estimated future operating results of the robert mondavi business , including the factors described above , as well as an estimated benefit from operating cost synergies .
the results of operations of the robert mondavi busi- ness are reported in the constellation wines segment and have been included in the consolidated statements of income since the acquisition date .
the following table summarizes the fair values of the assets acquired and liabilities assumed in the robert mondavi acquisition at the date of acquisition , as adjusted for the final appraisal : ( in thousands ) .

current assets               | $ 513782
---------------------------- | ---------
property plant and equipment | 438140
other assets                 | 124450
trademarks                   | 138000
goodwill                     | 634203
total assets acquired        | 1848575
current liabilities          | 310919
long-term liabilities        | 494995
total liabilities assumed    | 805914
net assets acquired          | $ 1042661

the trademarks are not subject to amortization .
none of the goodwill is expected to be deductible for tax purposes .
following the robert mondavi acquisition , the company sold certain of the acquired vineyard properties and related assets , investments accounted for under the equity method , and other winery properties and related assets , during the years ended february 28 , 2006 , and february 28 , 2005 .
the company realized net proceeds of $ 170.8 million from the sale of these assets during the year ended february 28 , 2006 .
amounts realized during the year ended february 28 , 2005 , were not material .
no gain or loss has been recognized upon the sale of these assets .
hardy acquisition 2013 on march 27 , 2003 , the company acquired control of brl hardy limited , now known as hardy wine company limited ( 201chardy 201d ) , and on april 9 , 2003 , the company completed its acquisition of all of hardy 2019s outstanding capital stock .
as a result of the acquisi- tion of hardy , the company also acquired the remaining 50% ( 50 % ) ownership of pacific wine partners llc ( 201cpwp 201d ) , the joint venture the company established with hardy in july 2001 .
the acquisition of hardy along with the remaining interest in pwp is referred to together as the 201chardy acquisition . 201d through this acquisition , the company acquired one of australia 2019s largest wine producers with interests in wineries and vineyards in most of australia 2019s major wine regions as well as new zealand and the united states and hardy 2019s marketing and sales operations in the united kingdom .
in october 2005 , pwp was merged into another subsidiary of the company .
total consideration paid in cash and class a common stock to the hardy shareholders was $ 1137.4 million .
additionally , the company recorded direct acquisition costs of $ 17.2 million .
the acquisition date for accounting pur- poses is march 27 , 2003 .
the company has recorded a $ 1.6 million reduction in the purchase price to reflect imputed interest between the accounting acquisition date and the final payment of consideration .
this charge is included as interest expense in the consolidated statement of income for the year ended february 29 , 2004 .
the cash portion of the purchase price paid to the hardy shareholders and optionholders ( $ 1060.2 million ) was financed with $ 660.2 million of borrowings under the company 2019s then existing credit agreement and $ 400.0 million of borrowings under the company 2019s then existing bridge loan agreement .
addi- tionally , the company issued 6577826 shares of the com- pany 2019s class a common stock , which were valued at $ 77.2 million based on the simple average of the closing market price of the company 2019s class a common stock beginning two days before and ending two days after april 4 , 2003 , the day the hardy shareholders elected the form of consid- eration they wished to receive .
the purchase price was based primarily on a discounted cash flow analysis that contemplated , among other things , the value of a broader geographic distribution in strategic international markets and a presence in the important australian winemaking regions .
the company and hardy have complementary businesses that share a common growth orientation and operating philosophy .
the hardy acquisition supports the company 2019s strategy of growth and breadth across categories


issuer purchases of equity securities the following table provides information about our repurchases of common stock during the three-month period ended december 31 , 2012 .
period total number of shares purchased average price paid per total number of shares purchased as part of publicly announced program ( a ) amount available for future share repurchases the program ( b ) ( in millions ) .

period                                 | total number of shares purchased | average price paid per share | total number of shares purchased as part of publicly announced program ( a ) | amount available for future share repurchases under the program ( b ) ( in millions )
-------------------------------------- | -------------------------------- | ---------------------------- | ---------------------------------------------------------------------------- | -------------------------------------------------------------------------------------
october 1 2012 2013 october 28 2012    | 842445                           | $ 93.38                      | 842445                                                                       | $ 2522
october 29 2012 2013 november 25 2012  | 872973                           | 90.86                        | 872973                                                                       | 2443
november 26 2012 2013 december 31 2012 | 1395288                          | 92.02                        | 1395288                                                                      | 2315
total                                  | 3110706                          | $ 92.07                      | 3110706                                                                      | $ 2315

( a ) we repurchased a total of 3.1 million shares of our common stock for $ 286 million during the quarter ended december 31 , 2012 under a share repurchase program that we announced in october 2010 .
( b ) our board of directors has approved a share repurchase program for the repurchase of our common stock from time-to-time , authorizing an amount available for share repurchases of $ 6.5 billion .
under the program , management has discretion to determine the dollar amount of shares to be repurchased and the timing of any repurchases in compliance with applicable law and regulation .
the program does not have an expiration date .
as of december 31 , 2012 , we had repurchased a total of 54.3 million shares under the program for $ 4.2 billion.


american tower corporation and subsidiaries notes to consolidated financial statements six-month offering period .
the weighted average fair value per share of espp share purchase options during the year ended december 31 , 2014 , 2013 and 2012 was $ 14.83 , $ 13.42 and $ 13.64 , respectively .
at december 31 , 2014 , 3.4 million shares remain reserved for future issuance under the plan .
key assumptions used to apply the black-scholes pricing model for shares purchased through the espp for the years ended december 31 , are as follows: .

                                                                              | 2014                                       | 2013                                       | 2012
----------------------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------ | ------------------------------------------
range of risk-free interest rate                                              | 0.06% ( 0.06 % ) 2013 0.11% ( 0.11 % )     | 0.07% ( 0.07 % ) 2013 0.13% ( 0.13 % )     | 0.05% ( 0.05 % ) 2013 0.12% ( 0.12 % )
weighted average risk-free interest rate                                      | 0.09% ( 0.09 % )                           | 0.10% ( 0.10 % )                           | 0.08% ( 0.08 % )
expected life of shares                                                       | 6 months                                   | 6 months                                   | 6 months
range of expected volatility of underlying stock price over the option period | 11.29% ( 11.29 % ) 2013 16.59% ( 16.59 % ) | 12.21% ( 12.21 % ) 2013 13.57% ( 13.57 % ) | 33.16% ( 33.16 % ) 2013 33.86% ( 33.86 % )
weighted average expected volatility of underlying stock price                | 14.14% ( 14.14 % )                         | 12.88% ( 12.88 % )                         | 33.54% ( 33.54 % )
expected annual dividend yield                                                | 1.50% ( 1.50 % )                           | 1.50% ( 1.50 % )                           | 1.50% ( 1.50 % )

16 .
equity mandatory convertible preferred stock offering 2014on may 12 , 2014 , the company completed a registered public offering of 6000000 shares of its 5.25% ( 5.25 % ) mandatory convertible preferred stock , series a , par value $ 0.01 per share ( the 201cmandatory convertible preferred stock 201d ) .
the net proceeds of the offering were $ 582.9 million after deducting commissions and estimated expenses .
the company used the net proceeds from this offering to fund acquisitions , including the acquisition from richland , initially funded by indebtedness incurred under the 2013 credit facility .
unless converted earlier , each share of the mandatory convertible preferred stock will automatically convert on may 15 , 2017 , into between 0.9174 and 1.1468 shares of common stock , depending on the applicable market value of the common stock and subject to anti-dilution adjustments .
subject to certain restrictions , at any time prior to may 15 , 2017 , holders of the mandatory convertible preferred stock may elect to convert all or a portion of their shares into common stock at the minimum conversion rate then in effect .
dividends on shares of mandatory convertible preferred stock are payable on a cumulative basis when , as and if declared by the company 2019s board of directors ( or an authorized committee thereof ) at an annual rate of 5.25% ( 5.25 % ) on the liquidation preference of $ 100.00 per share , on february 15 , may 15 , august 15 and november 15 of each year , commencing on august 15 , 2014 to , and including , may 15 , 2017 .
the company may pay dividends in cash or , subject to certain limitations , in shares of common stock or any combination of cash and shares of common stock .
the terms of the mandatory convertible preferred stock provide that , unless full cumulative dividends have been paid or set aside for payment on all outstanding mandatory convertible preferred stock for all prior dividend periods , no dividends may be declared or paid on common stock .
stock repurchase program 2014in march 2011 , the board of directors approved a stock repurchase program , pursuant to which the company is authorized to purchase up to $ 1.5 billion of common stock ( 201c2011 buyback 201d ) .
in september 2013 , the company temporarily suspended repurchases in connection with its acquisition of mipt .
under the 2011 buyback , the company is authorized to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices in accordance with securities laws and other legal requirements , and subject to market conditions and other factors .
to facilitate repurchases , the company


jpmorgan chase & co./2010 annual report 273 the following table presents the u.s .
and non-u.s .
components of income before income tax expense/ ( benefit ) and extraordinary gain for the years ended december 31 , 2010 , 2009 and 2008 .
year ended december 31 , ( in millions ) 2010 2009 2008 .

year ended december 31 ( in millions )                             | 2010    | 2009    | 2008
------------------------------------------------------------------ | ------- | ------- | ----------------
u.s .                                                              | $ 16568 | $ 6263  | $ -2094 ( 2094 )
non-u.s. ( a )                                                     | 8291    | 9804    | 4867
income before incometax expense/ ( benefit ) andextraordinary gain | $ 24859 | $ 16067 | $ 2773

non-u.s. ( a ) 8291 9804 4867 income before income tax expense/ ( benefit ) and extraordinary gain $ 24859 $ 16067 $ 2773 ( a ) for purposes of this table , non-u.s .
income is defined as income generated from operations located outside the u.s .
note 28 2013 restrictions on cash and intercompany funds transfers the business of jpmorgan chase bank , national association ( 201cjpmorgan chase bank , n.a . 201d ) is subject to examination and regulation by the office of the comptroller of the currency ( 201cocc 201d ) .
the bank is a member of the u.s .
federal reserve sys- tem , and its deposits in the u.s .
are insured by the fdic .
the board of governors of the federal reserve system ( the 201cfed- eral reserve 201d ) requires depository institutions to maintain cash reserves with a federal reserve bank .
the average amount of reserve balances deposited by the firm 2019s bank subsidiaries with various federal reserve banks was approximately $ 803 million and $ 821 million in 2010 and 2009 , respectively .
restrictions imposed by u.s .
federal law prohibit jpmorgan chase and certain of its affiliates from borrowing from banking subsidiar- ies unless the loans are secured in specified amounts .
such secured loans to the firm or to other affiliates are generally limited to 10% ( 10 % ) of the banking subsidiary 2019s total capital , as determined by the risk- based capital guidelines ; the aggregate amount of all such loans is limited to 20% ( 20 % ) of the banking subsidiary 2019s total capital .
the principal sources of jpmorgan chase 2019s income ( on a parent company 2013only basis ) are dividends and interest from jpmorgan chase bank , n.a. , and the other banking and nonbanking subsidi- aries of jpmorgan chase .
in addition to dividend restrictions set forth in statutes and regulations , the federal reserve , the occ and the fdic have authority under the financial institutions supervisory act to prohibit or to limit the payment of dividends by the banking organizations they supervise , including jpmorgan chase and its subsidiaries that are banks or bank holding companies , if , in the banking regulator 2019s opinion , payment of a dividend would consti- tute an unsafe or unsound practice in light of the financial condi- tion of the banking organization .
at january 1 , 2011 , jpmorgan chase 2019s banking subsidiaries could pay , in the aggregate , $ 2.0 billion in dividends to their respective bank holding companies without the prior approval of their relevant banking regulators .
the capacity to pay dividends in 2011 will be supplemented by the banking subsidiaries 2019 earnings during the in compliance with rules and regulations established by u.s .
and non-u.s .
regulators , as of december 31 , 2010 and 2009 , cash in the amount of $ 25.0 billion and $ 24.0 billion , respectively , and securities with a fair value of $ 9.7 billion and $ 10.2 billion , respec- tively , were segregated in special bank accounts for the benefit of securities and futures brokerage customers .
note 29 2013 capital the federal reserve establishes capital requirements , including well-capitalized standards for the consolidated financial holding company .
the occ establishes similar capital requirements and standards for the firm 2019s national banks , including jpmorgan chase bank , n.a. , and chase bank usa , n.a .
there are two categories of risk-based capital : tier 1 capital and tier 2 capital .
tier 1 capital consists of common stockholders 2019 equity , perpetual preferred stock , noncontrolling interests in sub- sidiaries and trust preferred capital debt securities , less goodwill and certain other adjustments .
tier 2 capital consists of preferred stock not qualifying as tier 1 , subordinated long-term debt and other instruments qualifying as tier 2 , and the aggregate allowance for credit losses up to a certain percentage of risk-weighted assets .
total capital is tier 1 capital plus tier 2 capital .
under the risk- based capital guidelines of the federal reserve , jpmorgan chase is required to maintain minimum ratios of tier 1 and total capital to risk-weighted assets , as well as minimum leverage ratios ( which are defined as tier 1 capital divided by adjusted quarterly average assets ) .
failure to meet these minimum requirements could cause the federal reserve to take action .
banking subsidiaries also are subject to these capital requirements by their respective primary regulators .
as of december 31 , 2010 and 2009 , jpmorgan chase and all of its banking subsidiaries were well-capitalized and met all capital requirements to which each was subject.


the graph below shows a five-year comparison of the cumulative shareholder return on the company's common stock with the cumulative total return of the s&p small cap 600 index and the russell 1000 index , both of which are published indices .
comparison of five-year cumulative total return from december 31 , 2005 to december 31 , 2010 assumes $ 100 invested with reinvestment of dividends period indexed returns .

company/index           | baseperiod 12/31/05 | baseperiod 12/31/06 | baseperiod 12/31/07 | baseperiod 12/31/08 | baseperiod 12/31/09 | 12/31/10
----------------------- | ------------------- | ------------------- | ------------------- | ------------------- | ------------------- | --------
a o smith corp          | 100.0               | 108.7               | 103.3               | 88.8                | 133.6               | 178.8
s&p small cap 600 index | 100.0               | 115.1               | 114.8               | 78.1                | 98.0                | 123.8
russell 1000 index      | 100.0               | 115.5               | 122.1               | 76.2                | 97.9                | 113.6

2005 2006 2007 2008 2009 2010 smith ( a o ) corp s&p smallcap 600 index russell 1000 index


packaging corporation of america notes to consolidated financial statements ( continued ) december 31 , 2002 2 .
summary of significant accounting policies ( continued ) stock-based compensation pca entered into management equity agreements in june 1999 with 125 of its management-level employees .
these agreements provide for the grant of options to purchase up to an aggregate of 6576460 shares of pca 2019s common stock at $ 4.55 per share , the same price per share at which pca holdings llc purchased common stock in the transactions .
the agreement called for these options to vest ratably over a five-year period , or upon completion of an initial public offering , full vesting with contractual restrictions on transfer for a period of up to 18 months following completion of the offering .
the options vested with the initial public offering in january 2000 , and the restriction period ended august , 2001 .
in october 1999 , the company adopted a long-term equity incentive plan , which provides for grants of stock options , stock appreciation rights ( sars ) , restricted stock and performance awards to directors , officers and employees of pca , as well as others who engage in services for pca .
option awards granted to officers and employees vest ratably over a four-year period , whereas option awards granted to directors vest immediately .
under the plan , which will terminate on june 1 , 2009 , up to 4400000 shares of common stock is available for issuance under the long-term equity incentive plan .
a summary of the company 2019s stock option activity , and related information for the years ended december 31 , 2002 , 2001 and 2000 follows : options weighted-average exercise price .

                         | options              | weighted-average exercise price
------------------------ | -------------------- | -------------------------------
balance january 1 2000   | 6569200              | $ 4.55
granted                  | 1059700              | 11.92
exercised                | -398138 ( 398138 )   | 4.55
forfeited                | -26560 ( 26560 )     | 6.88
balance december 31 2000 | 7204202              | $ 5.62
granted                  | 953350               | 15.45
exercised                | -1662475 ( 1662475 ) | 4.59
forfeited                | -16634 ( 16634 )     | 11.18
balance december 31 2001 | 6478443              | $ 7.31
granted                  | 871000               | 19.55
exercised                | -811791 ( 811791 )   | 5.52
forfeited                | -63550 ( 63550 )     | 15.44
balance december 31 2002 | 6474102              | $ 9.10

clean proof : for cycle 12


a valuation allowance has been established for certain deferred tax assets related to the impairment of investments .
accounting for uncertainty in income taxes during fiscal 2011 and 2010 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows ( in thousands ) : beginning balance gross increases in unrecognized tax benefits 2013 prior year tax positions gross decreases in unrecognized tax benefits 2013 prior year tax positions gross increases in unrecognized tax benefits 2013 current year tax positions settlements with taxing authorities lapse of statute of limitations foreign exchange gains and losses ending balance $ 156925 11901 ( 4154 ) 32420 ( 29101 ) ( 3825 ) $ 163607 $ 218040 ( 7104 ) 15108 ( 70484 ) ( 7896 ) $ 156925 as of december 2 , 2011 , the combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current income taxes payable was approximately $ 12.3 million .
we file income tax returns in the u.s .
on a federal basis and in many u.s .
state and foreign jurisdictions .
we are subject to the continual examination of our income tax returns by the irs and other domestic and foreign tax authorities .
our major tax jurisdictions are the u.s. , ireland and california .
for california , ireland and the u.s. , the earliest fiscal years open for examination are 2005 , 2006 and 2008 , respectively .
we regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from the current examination .
we believe such estimates to be reasonable ; however , there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position .
in august 2011 , a canadian income tax examination covering our fiscal years 2005 through 2008 was completed .
our accrued tax and interest related to these years was approximately $ 35 million and was previously reported in long-term income taxes payable .
we reclassified approximately $ 17 million to short-term income taxes payable and decreased deferred tax assets by approximately $ 18 million in conjunction with the aforementioned resolution .
the $ 17 million balance in short-term income taxes payable is partially secured by a letter of credit and is expected to be paid by the first quarter of fiscal 2012 .
in october 2010 , a u.s .
income tax examination covering our fiscal years 2005 through 2007 was completed .
our accrued tax and interest related to these years was $ 59 million and was previously reported in long-term income taxes payable .
we paid $ 20 million in conjunction with the aforementioned resolution .
a net income statement tax benefit in the fourth quarter of fiscal 2010 of $ 39 million resulted .
the timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process .
these events could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities .
the company believes that before the end of fiscal 2012 , it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire , or both .
given the uncertainties described above , we can only determine a range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 40 million .
these amounts would decrease income tax expense under current gaap related to income taxes .
note 11 .
restructuring fiscal 2011 restructuring plan in the fourth quarter of fiscal 2011 , in order to better align our resources around our digital media and digital marketing strategies , we initiated a restructuring plan consisting of reductions of approximately 700 full-time positions worldwide and we recorded restructuring charges of approximately $ 78.6 million related to ongoing termination benefits for the position eliminated .
table of contents adobe systems incorporated notes to consolidated financial statements ( continued ) .

                                                                             | 2011             | 2010
---------------------------------------------------------------------------- | ---------------- | ----------------
beginning balance                                                            | $ 156925         | $ 218040
gross increases in unrecognized tax benefits 2013 prior year tax positions   | 11901            | 9580
gross decreases in unrecognized tax benefits 2013 prior year tax positions   | -4154 ( 4154 )   | -7104 ( 7104 )
gross increases in unrecognized tax benefits 2013 current year tax positions | 32420            | 15108
settlements with taxing authorities                                          | -29101 ( 29101 ) | -70484 ( 70484 )
lapse of statute of limitations                                              | -3825 ( 3825 )   | -7896 ( 7896 )
foreign exchange gains and losses                                            | -559 ( 559 )     | -319 ( 319 )
ending balance                                                               | $ 163607         | $ 156925

a valuation allowance has been established for certain deferred tax assets related to the impairment of investments .
accounting for uncertainty in income taxes during fiscal 2011 and 2010 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows ( in thousands ) : beginning balance gross increases in unrecognized tax benefits 2013 prior year tax positions gross decreases in unrecognized tax benefits 2013 prior year tax positions gross increases in unrecognized tax benefits 2013 current year tax positions settlements with taxing authorities lapse of statute of limitations foreign exchange gains and losses ending balance $ 156925 11901 ( 4154 ) 32420 ( 29101 ) ( 3825 ) $ 163607 $ 218040 ( 7104 ) 15108 ( 70484 ) ( 7896 ) $ 156925 as of december 2 , 2011 , the combined amount of accrued interest and penalties related to tax positions taken on our tax returns and included in non-current income taxes payable was approximately $ 12.3 million .
we file income tax returns in the u.s .
on a federal basis and in many u.s .
state and foreign jurisdictions .
we are subject to the continual examination of our income tax returns by the irs and other domestic and foreign tax authorities .
our major tax jurisdictions are the u.s. , ireland and california .
for california , ireland and the u.s. , the earliest fiscal years open for examination are 2005 , 2006 and 2008 , respectively .
we regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from the current examination .
we believe such estimates to be reasonable ; however , there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position .
in august 2011 , a canadian income tax examination covering our fiscal years 2005 through 2008 was completed .
our accrued tax and interest related to these years was approximately $ 35 million and was previously reported in long-term income taxes payable .
we reclassified approximately $ 17 million to short-term income taxes payable and decreased deferred tax assets by approximately $ 18 million in conjunction with the aforementioned resolution .
the $ 17 million balance in short-term income taxes payable is partially secured by a letter of credit and is expected to be paid by the first quarter of fiscal 2012 .
in october 2010 , a u.s .
income tax examination covering our fiscal years 2005 through 2007 was completed .
our accrued tax and interest related to these years was $ 59 million and was previously reported in long-term income taxes payable .
we paid $ 20 million in conjunction with the aforementioned resolution .
a net income statement tax benefit in the fourth quarter of fiscal 2010 of $ 39 million resulted .
the timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process .
these events could cause large fluctuations in the balance sheet classification of current and non-current assets and liabilities .
the company believes that before the end of fiscal 2012 , it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire , or both .
given the uncertainties described above , we can only determine a range of estimated potential decreases in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 40 million .
these amounts would decrease income tax expense under current gaap related to income taxes .
note 11 .
restructuring fiscal 2011 restructuring plan in the fourth quarter of fiscal 2011 , in order to better align our resources around our digital media and digital marketing strategies , we initiated a restructuring plan consisting of reductions of approximately 700 full-time positions worldwide and we recorded restructuring charges of approximately $ 78.6 million related to ongoing termination benefits for the position eliminated .
table of contents adobe systems incorporated notes to consolidated financial statements ( continued )


mondavi produces , markets and sells premium , super-premium and fine california wines under the woodbridge by robert mondavi , robert mondavi private selection and robert mondavi winery brand names .
woodbridge and robert mondavi private selection are the leading premium and super-premium wine brands by volume , respectively , in the united states .
the acquisition of robert mondavi supports the company 2019s strategy of strengthening the breadth of its portfolio across price segments to capitalize on the overall growth in the pre- mium , super-premium and fine wine categories .
the company believes that the acquired robert mondavi brand names have strong brand recognition globally .
the vast majority of robert mondavi 2019s sales are generated in the united states .
the company intends to leverage the robert mondavi brands in the united states through its selling , marketing and distribution infrastructure .
the company also intends to further expand distribution for the robert mondavi brands in europe through its constellation europe infrastructure .
the company and robert mondavi have complementary busi- nesses that share a common growth orientation and operating philosophy .
the robert mondavi acquisition provides the company with a greater presence in the fine wine sector within the united states and the ability to capitalize on the broader geographic distribution in strategic international markets .
the robert mondavi acquisition supports the company 2019s strategy of growth and breadth across categories and geographies , and strengthens its competitive position in its core markets .
in par- ticular , the company believes there are growth opportunities for premium , super-premium and fine wines in the united kingdom , united states and other wine markets .
total consid- eration paid in cash to the robert mondavi shareholders was $ 1030.7 million .
additionally , the company expects to incur direct acquisition costs of $ 11.2 million .
the purchase price was financed with borrowings under the company 2019s 2004 credit agreement ( as defined in note 9 ) .
in accordance with the pur- chase method of accounting , the acquired net assets are recorded at fair value at the date of acquisition .
the purchase price was based primarily on the estimated future operating results of robert mondavi , including the factors described above , as well as an estimated benefit from operating cost synergies .
the results of operations of the robert mondavi business are reported in the constellation wines segment and have been included in the consolidated statement of income since the acquisition date .
the following table summarizes the estimated fair values of the assets acquired and liabilities assumed in the robert mondavi acquisition at the date of acquisition .
the company is in the process of obtaining third-party valuations of certain assets and liabilities , and refining its restructuring plan which is under development and will be finalized during the company 2019s year ending february 28 , 2006 ( see note19 ) .
accordingly , the allocation of the purchase price is subject to refinement .
estimated fair values at december 22 , 2004 , are as follows : {in thousands} .

current assets               | $ 494788
---------------------------- | ---------
property plant and equipment | 452902
other assets                 | 178823
trademarks                   | 186000
goodwill                     | 590459
total assets acquired        | 1902972
current liabilities          | 309051
long-term liabilities        | 552060
total liabilities acquired   | 861111
net assets acquired          | $ 1041861

the trademarks are not subject to amortization .
none of the goodwill is expected to be deductible for tax purposes .
in connection with the robert mondavi acquisition and robert mondavi 2019s previously disclosed intention to sell certain of its winery properties and related assets , and other vineyard prop- erties , the company has classified certain assets as held for sale as of february 28 , 2005 .
the company expects to sell these assets during the year ended february 28 , 2006 , for net pro- ceeds of approximately $ 150 million to $ 175 million .
no gain or loss is expected to be recognized upon the sale of these assets .
hardy acquisition 2013 on march 27 , 2003 , the company acquired control of brl hardy limited , now known as hardy wine company limited ( 201chardy 201d ) , and on april 9 , 2003 , the company completed its acquisition of all of hardy 2019s outstanding capital stock .
as a result of the acquisition of hardy , the company also acquired the remaining 50% ( 50 % ) ownership of pacific wine partners llc ( 201cpwp 201d ) , the joint venture the company established with hardy in july 2001 .
the acquisition of hardy along with the remaining interest in pwp is referred to together as the 201chardy acquisition . 201d through this acquisition , the company acquired one of australia 2019s largest wine producers with interests in winer- ies and vineyards in most of australia 2019s major wine regions as well as new zealand and the united states and hardy 2019s market- ing and sales operations in the united kingdom .
total consideration paid in cash and class a common stock to the hardy shareholders was $ 1137.4 million .
additionally , the company recorded direct acquisition costs of $ 17.2 million .
the acquisition date for accounting purposes is march 27 , 2003 .
the company has recorded a $ 1.6 million reduction in the purchase price to reflect imputed interest between the accounting acquisition date and the final payment of consider- ation .
this charge is included as interest expense in the consolidated statement of income for the year ended february 29 , 2004 .
the cash portion of the purchase price paid to the hardy shareholders and optionholders ( $ 1060.2 mil- lion ) was financed with $ 660.2 million of borrowings under the company 2019s then existing credit agreement and $ 400.0 million


issuer purchases of equity securities during the three months ended december 31 , 2010 , we repurchased 1460682 shares of our common stock for an aggregate of $ 74.6 million , including commissions and fees , pursuant to our publicly announced stock repurchase program , as follows : period total number of shares purchased ( 1 ) average price paid per share total number of shares purchased as part of publicly announced plans or programs approximate dollar value of shares that may yet be purchased under the plans or programs ( in millions ) .

period               | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | approximate dollar value of shares that may yet be purchasedunder the plans or programs ( in millions )
-------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------
october 2010         | 722890                                 | $ 50.76                      | 722890                                                                           | $ 369.1
november 2010        | 400692                                 | $ 51.81                      | 400692                                                                           | $ 348.3
december 2010        | 337100                                 | $ 50.89                      | 337100                                                                           | $ 331.1
total fourth quarter | 1460682                                | $ 51.08                      | 1460682                                                                          | $ 331.1

( 1 ) repurchases made pursuant to the $ 1.5 billion stock repurchase program approved by our board of directors in february 2008 ( the 201cbuyback 201d ) .
under this program , our management is authorized to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements , and subject to market conditions and other factors .
to facilitate repurchases , we make purchases pursuant to trading plans under rule 10b5-1 of the exchange act , which allows us to repurchase shares during periods when we otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods .
this program may be discontinued at any time .
subsequent to december 31 , 2010 , we repurchased 1122481 shares of our common stock for an aggregate of $ 58.0 million , including commissions and fees , pursuant to the buyback .
as of february 11 , 2011 , we had repurchased a total of 30.9 million shares of our common stock for an aggregate of $ 1.2 billion , including commissions and fees pursuant to the buyback .
we expect to continue to manage the pacing of the remaining $ 273.1 million under the buyback in response to general market conditions and other relevant factors.


comparable treasury security .
the unamortized discount and debt issuance costs are being amortized over the remaining term of the 2022 notes .
2021 notes .
in may 2011 , the company issued $ 1.5 billion in aggregate principal amount of unsecured unsubordinated obligations .
these notes were issued as two separate series of senior debt securities , including $ 750 million of 4.25% ( 4.25 % ) notes maturing in may 2021 and $ 750 million of floating rate notes ( 201c2013 floating rate notes 201d ) , which were repaid in may 2013 at maturity .
net proceeds of this offering were used to fund the repurchase of blackrock 2019s series b preferred from affiliates of merrill lynch & co. , inc .
( 201cmerrill lynch 201d ) .
interest on the 4.25% ( 4.25 % ) notes due in 2021 ( 201c2021 notes 201d ) is payable semi-annually on may 24 and november 24 of each year , which commenced november 24 , 2011 , and is approximately $ 32 million per year .
the 2021 notes may be redeemed prior to maturity at any time in whole or in part at the option of the company at a 201cmake-whole 201d redemption price .
the unamortized discount and debt issuance costs are being amortized over the remaining term of the 2021 notes .
2019 notes .
in december 2009 , the company issued $ 2.5 billion in aggregate principal amount of unsecured and unsubordinated obligations .
these notes were issued as three separate series of senior debt securities including $ 0.5 billion of 2.25% ( 2.25 % ) notes , which were repaid in december 2012 , $ 1.0 billion of 3.50% ( 3.50 % ) notes , which were repaid in december 2014 at maturity , and $ 1.0 billion of 5.0% ( 5.0 % ) notes maturing in december 2019 ( the 201c2019 notes 201d ) .
net proceeds of this offering were used to repay borrowings under the cp program , which was used to finance a portion of the acquisition of barclays global investors ( 201cbgi 201d ) from barclays on december 1 , 2009 ( the 201cbgi transaction 201d ) , and for general corporate purposes .
interest on the 2019 notes of approximately $ 50 million per year is payable semi- annually in arrears on june 10 and december 10 of each year .
these notes may be redeemed prior to maturity at any time in whole or in part at the option of the company at a 201cmake-whole 201d redemption price .
the unamortized discount and debt issuance costs are being amortized over the remaining term of the 2019 notes .
2017 notes .
in september 2007 , the company issued $ 700 million in aggregate principal amount of 6.25% ( 6.25 % ) senior unsecured and unsubordinated notes maturing on september 15 , 2017 ( the 201c2017 notes 201d ) .
a portion of the net proceeds of the 2017 notes was used to fund the initial cash payment for the acquisition of the fund-of-funds business of quellos and the remainder was used for general corporate purposes .
interest is payable semi-annually in arrears on march 15 and september 15 of each year , or approximately $ 44 million per year .
the 2017 notes may be redeemed prior to maturity at any time in whole or in part at the option of the company at a 201cmake-whole 201d redemption price .
the unamortized discount and debt issuance costs are being amortized over the remaining term of the 2017 notes .
13 .
commitments and contingencies operating lease commitments the company leases its primary office spaces under agreements that expire through 2035 .
future minimum commitments under these operating leases are as follows : ( in millions ) .

year       | amount
---------- | ------
2016       | $ 134
2017       | 133
2018       | 131
2019       | 125
2020       | 120
thereafter | 560
total      | $ 1203

rent expense and certain office equipment expense under lease agreements amounted to $ 136 million , $ 132 million and $ 137 million in 2015 , 2014 and 2013 , respectively .
investment commitments .
at december 31 , 2015 , the company had $ 179 million of various capital commitments to fund sponsored investment funds , including consolidated vies .
these funds include private equity funds , real estate funds , infrastructure funds and opportunistic funds .
this amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds .
in addition to the capital commitments of $ 179 million , the company had approximately $ 38 million of contingent commitments for certain funds which have investment periods that have expired .
generally , the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment .
these unfunded commitments are not recorded on the consolidated statements of financial condition .
these commitments do not include potential future commitments approved by the company that are not yet legally binding .
the company intends to make additional capital commitments from time to time to fund additional investment products for , and with , its clients .
contingencies contingent payments .
the company acts as the portfolio manager in a series of derivative transactions and has a maximum potential exposure of $ 17 million between the company and counterparty .
see note 7 , derivatives and hedging , for further discussion .
contingent payments related to business acquisitions .
in connection with certain acquisitions , blackrock is required to make contingent payments , subject to the acquired businesses achieving specified performance targets over a certain period subsequent to the applicable acquisition date .
the fair value of the remaining aggregate contingent payments at december 31 , 2015 is not significant to the condensed consolidated statement of financial condition and is included in other liabilities.


majority of the increased tax position is attributable to temporary differences .
the increase in 2014 current period tax positions related primarily to the company 2019s change in tax accounting method filed in 2008 for repair and maintenance costs on its utility plant .
the company does not anticipate material changes to its unrecognized tax benefits within the next year .
if the company sustains all of its positions at december 31 , 2014 and 2013 , an unrecognized tax benefit of $ 9444 and $ 7439 , respectively , excluding interest and penalties , would impact the company 2019s effective tax rate .
the following table summarizes the changes in the company 2019s valuation allowance: .

balance at january 1 2012                 | $ 21579
----------------------------------------- | --------------
increases in current period tax positions | 2014
decreases in current period tax positions | -2059 ( 2059 )
balance at december 31 2012               | $ 19520
increases in current period tax positions | 2014
decreases in current period tax positions | -5965 ( 5965 )
balance at december 31 2013               | $ 13555
increases in current period tax positions | 2014
decreases in current period tax positions | -3176 ( 3176 )
balance at december 31 2014               | $ 10379

included in 2013 is a discrete tax benefit totaling $ 2979 associated with an entity re-organization within the company 2019s market-based operations segment that allowed for the utilization of state net operating loss carryforwards and the release of an associated valuation allowance .
note 13 : employee benefits pension and other postretirement benefits the company maintains noncontributory defined benefit pension plans covering eligible employees of its regulated utility and shared services operations .
benefits under the plans are based on the employee 2019s years of service and compensation .
the pension plans have been closed for all employees .
the pension plans were closed for most employees hired on or after january 1 , 2006 .
union employees hired on or after january 1 , 2001 had their accrued benefit frozen and will be able to receive this benefit as a lump sum upon termination or retirement .
union employees hired on or after january 1 , 2001 and non-union employees hired on or after january 1 , 2006 are provided with a 5.25% ( 5.25 % ) of base pay defined contribution plan .
the company does not participate in a multiemployer plan .
the company 2019s pension funding practice is to contribute at least the greater of the minimum amount required by the employee retirement income security act of 1974 or the normal cost .
further , the company will consider additional contributions if needed to avoid 201cat risk 201d status and benefit restrictions under the pension protection act of 2006 .
the company may also consider increased contributions , based on other financial requirements and the plans 2019 funded position .
pension plan assets are invested in a number of actively managed and commingled funds including equity and bond funds , fixed income securities , guaranteed interest contracts with insurance companies , real estate funds and real estate investment trusts ( 201creits 201d ) .
pension expense in excess of the amount contributed to the pension plans is deferred by certain regulated subsidiaries pending future recovery in rates charged for utility services as contributions are made to the plans .
( see note 6 ) the company also has unfunded noncontributory supplemental non-qualified pension plans that provide additional retirement benefits to certain employees.


on october 21 , 2004 , the hartford declared a dividend on its common stock of $ 0.29 per share payable on january 3 , 2005 to shareholders of record as of december 1 , 2004 .
the hartford declared $ 331 and paid $ 325 in dividends to shareholders in 2004 , declared $ 300 and paid $ 291 in dividends to shareholders in 2003 , declared $ 262 and paid $ 257 in 2002 .
aoci - aoci increased by $ 179 as of december 31 , 2004 compared with december 31 , 2003 .
the increase in aoci is primarily the result of life 2019s adoption of sop 03-1 , which resulted in a $ 292 cumulative effect for unrealized gains on securities in the first quarter of 2004 related to the reclassification of investments from separate account assets to general account assets , partially offset by net unrealized losses on cash-flow hedging instruments .
the funded status of the company 2019s pension and postretirement plans is dependent upon many factors , including returns on invested assets and the level of market interest rates .
declines in the value of securities traded in equity markets coupled with declines in long- term interest rates have had a negative impact on the funded status of the plans .
as a result , the company recorded a minimum pension liability as of december 31 , 2004 , and 2003 , which resulted in an after-tax reduction of stockholders 2019 equity of $ 480 and $ 375 respectively .
this minimum pension liability did not affect the company 2019s results of operations .
for additional information on stockholders 2019 equity and aoci see notes 15 and 16 , respectively , of notes to consolidated financial statements .
cash flow 2004 2003 2002 .

cash flow                                 | 2004             | 2003             | 2002
----------------------------------------- | ---------------- | ---------------- | ----------------
net cash provided by operating activities | $ 2634           | $ 3896           | $ 2577
net cash used for investing activities    | $ -2401 ( 2401 ) | $ -8387 ( 8387 ) | $ -6600 ( 6600 )
net cash provided by financing activities | $ 477            | $ 4608           | $ 4037
cash 2014 end of year                     | $ 1148           | $ 462            | $ 377

2004 compared to 2003 2014 cash from operating activities primarily reflects premium cash flows in excess of claim payments .
the decrease in cash provided by operating activities was due primarily to the $ 1.15 billion settlement of the macarthur litigation in 2004 .
cash provided by financing activities decreased primarily due to lower proceeds from investment and universal life-type contracts as a result of the adoption of sop 03-1 , decreased capital raising activities , repayment of commercial paper and early retirement of junior subordinated debentures in 2004 .
the decrease in cash from financing activities and operating cash flows invested long-term accounted for the majority of the change in cash used for investing activities .
2003 compared to 2002 2014 the increase in cash provided by operating activities was primarily the result of strong premium cash flows .
financing activities increased primarily due to capital raising activities related to the 2003 asbestos reserve addition and decreased due to repayments on long-term debt and lower proceeds from investment and universal life-type contracts .
the increase in cash from financing activities accounted for the majority of the change in cash used for investing activities .
operating cash flows in each of the last three years have been adequate to meet liquidity requirements .
equity markets for a discussion of the potential impact of the equity markets on capital and liquidity , see the capital markets risk management section under 201cmarket risk 201d .
ratings ratings are an important factor in establishing the competitive position in the insurance and financial services marketplace .
there can be no assurance that the company's ratings will continue for any given period of time or that they will not be changed .
in the event the company's ratings are downgraded , the level of revenues or the persistency of the company's business may be adversely impacted .
on august 4 , 2004 , moody 2019s affirmed the company 2019s and hartford life , inc . 2019s a3 senior debt ratings as well as the aa3 insurance financial strength ratings of both its property-casualty and life insurance operating subsidiaries .
in addition , moody 2019s changed the outlook for all of these ratings from negative to stable .
since the announcement of the suit filed by the new york attorney general 2019s office against marsh & mclennan companies , inc. , and marsh , inc .
on october 14 , 2004 , the major independent ratings agencies have indicated that they continue to monitor developments relating to the suit .
on october 22 , 2004 , standard & poor 2019s revised its outlook on the u.s .
property/casualty commercial lines sector to negative from stable .
on november 23 , 2004 , standard & poor 2019s revised its outlook on the financial strength and credit ratings of the property-casualty insurance subsidiaries to negative from stable .
the outlook on the life insurance subsidiaries and corporate debt was unaffected.


employee benefit plans sysco has defined benefit and defined contribution retirement plans for its employees .
also , the company contributes to various multi-employer plans under collective bargaining agreements and provides certain health care benefits to eligible retirees and their dependents .
sysco maintains a qualified retirement plan ( retirement plan ) that pays benefits to employees at retirement , using formulas based on a participant 2019s years of service and compensation .
the defined contribution 401 ( k ) plan provides that under certain circumstances the company may make matching contributions of up to 50% ( 50 % ) of the first 6% ( 6 % ) of a participant 2019s compensation .
sysco 2019s contributions to this plan were $ 28109000 in 2005 , $ 27390000 in 2004 , and $ 24102000 in 2003 .
in addition to receiving benefits upon retirement under the company 2019s defined benefit plan , participants in the management incentive plan ( see 201cmanagement incentive compensation 201d under 201cstock based compensation plans 201d ) will receive benefits under a supplemental executive retirement plan ( serp ) .
this plan is a nonqualified , unfunded supplementary retirement plan .
in order to meet its obligations under the serp , sysco maintains life insurance policies on the lives of the participants with carrying values of $ 138931000 at july 2 , 2005 and $ 87104000 at july 3 , 2004 .
these policies are not included as plan assets or in the funded status amounts in the table below .
sysco is the sole owner and beneficiary of such policies .
projected benefit obligations and accumulated benefit obligations for the serp were $ 375491000 and $ 264010000 , respectively , as of july 2 , 2005 and $ 269815000 and $ 153652000 , respectively , as of july 3 , the company made cash contributions to its pension plans of $ 220361000 and $ 165512000 in fiscal years 2005 and 2004 , respec- tively , including $ 214000000 and $ 160000000 in voluntary contributions to the retirement plan in fiscal 2005 and 2004 , respectively .
included in the amounts contributed in fiscal 2005 was $ 134000000 voluntarily contributed to the qualified pension plan in the fourth quarter .
the decision to increase the contributions to the qualified pension plan in fiscal 2005 was primarily due to the decreased discount rate , which increased the pension obligation and negatively impacted the fiscal 2005 year-end pension funded status .
in fiscal 2006 , as in previous years , contributions to the retirement plan will not be required to meet erisa minimum funding requirements , yet the company anticipates it will make voluntary contributions of approximately $ 66000000 .
the company 2019s contributions to the serp and other post- retirement plans are made in the amounts needed to fund current year benefit payments .
the estimated fiscal 2006 contributions to fund benefit payments for the serp and other post-retirement plans are $ 7659000 and $ 338000 , respectively .
estimated future benefit payments are as follows : postretirement pension benefits plans .

                      | pension benefits | other postretirement plans
--------------------- | ---------------- | --------------------------
2006                  | $ 27316000       | $ 338000
2007                  | 29356000         | 392000
2008                  | 33825000         | 467000
2009                  | 39738000         | 535000
2010                  | 46957000         | 627000
subsequent five years | 355550000        | 4234000


the pension plan investments are held in a master trust , with the northern trust company .
investments in the master trust are valued at fair value , which has been determined based on fair value of the underlying investments of the master trust .
investments in securities traded on public security exchanges are valued at their closing market prices on the valuation date ; where no sale was made on the valuation date , the security is generally valued at its most recent bid price .
certain short-term investments are carried at cost , which approximates fair value .
investments in registered investment companies and common trust funds , which primarily invest in stocks , bonds , and commodity futures , are valued using publicly available market prices for the underlying investments held by these entities .
the majority of pension plan assets are invested in equity securities , because equity portfolios have historically provided higher returns than debt and other asset classes over extended time horizons , and are expected to do so in the future .
correspondingly , equity investments also entail greater risks than other investments .
equity risks are balanced by investing a significant portion of the plan 2019s assets in high quality debt securities .
the average quality rating of the debt portfolio exceeded aa as of december 31 , 2008 and 2007 .
the debt portfolio is also broadly diversified and invested primarily in u.s .
treasury , mortgage , and corporate securities with an intermediate average maturity .
the weighted-average maturity of the debt portfolio was 5 years at both december 31 , 2008 and 2007 , respectively .
the investment of pension plan assets in securities issued by union pacific is specifically prohibited for both the equity and debt portfolios , other than through index fund holdings .
other retirement programs thrift plan 2013 we provide a defined contribution plan ( thrift plan ) to eligible non-union employees and make matching contributions to the thrift plan .
we match 50 cents for each dollar contributed by employees up to the first six percent of compensation contributed .
our thrift plan contributions were $ 14 million in 2008 , $ 14 million in 2007 , and $ 13 million in 2006 .
railroad retirement system 2013 all railroad employees are covered by the railroad retirement system ( the system ) .
contributions made to the system are expensed as incurred and amounted to approximately $ 620 million in 2008 , $ 616 million in 2007 , and $ 615 million in 2006 .
collective bargaining agreements 2013 under collective bargaining agreements , we provide certain postretirement healthcare and life insurance benefits for eligible union employees .
premiums under the plans are expensed as incurred and amounted to $ 49 million in 2008 and $ 40 million in both 2007 and 5 .
other income other income included the following for the years ended december 31 : millions of dollars 2008 2007 2006 .

millions of dollars                          | 2008       | 2007       | 2006
-------------------------------------------- | ---------- | ---------- | ----------
rental income                                | $ 87       | $ 68       | $ 83
net gain on non-operating asset dispositions | 41         | 52         | 72
interest income                              | 21         | 50         | 29
sale of receivables fees                     | -23 ( 23 ) | -35 ( 35 ) | -33 ( 33 )
non-operating environmental costs and other  | -34 ( 34 ) | -19 ( 19 ) | -33 ( 33 )
total                                        | $ 92       | $ 116      | $ 118